Full text of The Northwestern Banker : June 1975, 82nd Year, No. 1341

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Federal Reserve Bank of St. Louis

a
orobbnr?

...call the Ffoblem Solvers
at Merchants National Bank: 1-800-332-5991.

Merchants National Bank m
C edar Rapids, Iowa 52401

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Federal Reserve Bank of St. Louis

A BANKS OF IOWA BANK

Coupon Collections:
W hat’s the best way?

you can send all your coupons
direct to Chase in one convenient
batch and have funds available in
three days.

You can go every which way,
sending coupons to many different
paying agents and tying up your
people and your cash.....................

Many banks are in the habit of collecting
their matured coupons and bonds the slow,
old-fashioned way. They painfully sort and
route coupons every which way to various
paying agents and then wait an undeter
mined amount of time for payment. Chase
offers you a better way. We call it "Central
Sending.” You simply take all your coupons
and bonds, put them into the industry-ap
proved envelopes and mail the entire batch
to Chase. Upon receipt, our experts take it
from there. In two days, you have credit...
and the third day, funds are available. [Unless
you prefer that we handle the items on a col
lection basis].
When you “ central se nd ” everything to

Chase, there are no frustrating delays be
cause coupons get sent to an "out-of-date”
paying agent. We have up-to-the-minute rec
ords to help us research the correct paying
agent.
If something has to be traced, you need to
make only one phone call.
And remember, our service is so goo d .. .we
guarantee the "Central Sending” system’s
two-day credit and third-day availability of
funds. So, if you’d like to collect coupons
the easy, inexpensive way... just clip our cou
pon below or call your Chase Relationship
Manager, collect, at [212] 552-3192. He can
do more for you because we’re doing more
for him.

«---------------- *----------------------------------- 1
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Chase Manhattan Bank
Correspondent Banking Division
P.O. Box 6997
New York, N.Y. 10249

|
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Dear Chase Relationship Manager:
I’m interested in the Chase "Central Send" Coupon Collection
Service. Please get in touch with me.

Name______________________________________________________

Title,______________________________________________________
I

B a n k _ _ ___________________________________________________

■ Street______________________________________________________

J
I

City_______________________ State________ Zip________________
Telephone

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)________________________ J

I----------------------------------------------------------------------------------------- 1

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

N o rth w e s te rn

Banker, June

1975

Convention
Calendar

Oldest Financial Journal Serving
The Central and Western States

for your June, 1975 reading
82nd

Year

No.

1341

FEATURE ARTICLES

10 On the Cover
12 Bank Promotions and Changes
20 Corporate News
25 How Bankers Fight the Bad Check Battle— A N o r t h w e s t e r n B a n k e r Survey
28 Management/Marketing—How to Enhance the Partnership—
Thomas L. Wright
30 Home Improvement Loans—Profit Opportunity for the Retail Bank—
William F. Schumann
37 How to Attain Financial Happiness— Ivan Bull
42 Bankers’ Market Place
AREA B A N K IN G NEW S

53
60
66
73
77
79
83
88
90
91
92
93
95
105
109
120
122
122

Illinois Convention Report— Malcolm Freeland
Minnesota Convention Program Announced
Twin City News
North Dakota Convention Report—Ren Haller, Jr.
Colorado News
South Dakota Convention Report— Malcolm Freeland
Wyoming Convention Program Announced
Montana Convention Program Announced
Washington Bankers to Meet June 22-24
Sun Valley Is Site of Idaho Convention
Utah Bankers to Meet in Sun Valley
Nevada Bankers to Meet at Lake Tahoe
Nebraska Convention Report— Ben Haller, Jr.
Omaha News
Iowa Group Meetings Report— Malcolm Freeland and Linda Larson
Des Moines News
In the Directors’ Room
Index of Advertisers
NORTHWESTERN BANKER
3 0 6 15th S tre et, Des M oines, Iow a 5 0 3 0 9 . Phone 5 1 5 — 2 4 4 -8 1 6 3

Publisher

Editor

M alcolm K . Freeland

Ben H aller, Jr.

Advertising Assistant

Circulation Department
Dee Timm erman

Sherri N ielsen

Field Representative

AI K e rb el

Paul M asters

No. 1341. Northwestern Banker is
Fifteenth Street, Des Moines, Iowa
postage paid at Des Moines and at
address Form 3579, manuscripts, mail
N o rth w e ste rn

B a nker, June

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Federal Reserve Bank of St. Louis

Associate Editor
Linda L. Larson

Auditor
M ildred Barnes

Field Representative
G len Hicks

published monthly by the Northwestern Banker Company, 306
50309. Subscription $1.00 per copy, $10 per year. Second class
additional mailing office. Address all mail (subscriptions, change of
items) to above address.

1975

June 4-6— NABW Lake, Midwest and
Central Regional Conference, Holiday
Inn, Bismarck, N. D.
June 4-8— Colorado Bankers Association
Annual Convention, The Broadmoor,
Colorado Springs.
June 8-10— Nevada Bankers Association
Annual Convention, Sahara Tahoe Hotel,
Lake Tahoe.
June 9-11— Minnesota Bankers Association
Annual Convention, Arena-Auditorium,
Duluth.
June 11-13— Wyoming Bankers Association
Annual Convention, Jackson Lake Lodge,
Moran.
June 15-18— Idaho Bankers Association An
nual Convention, Sun Valley Lodge, Sun
Valley.
June 18-21— Utah Bankers Association An
nual Convention, Main Lodge, Sun Val
ley.
June 19-20— Oregon Bankers Association
Annual Convention, Sunriver Lodge, Sunriver.
June 19-21— Montana Bankers Association
Annual Convention, Jackson Lake Lodge,

Moran.
June 22-24— Washington Bankers Associa
tion Annual Convention, Tyee Motor Inn,
Olympia.
August— IBAA Senior Bank Officer Semi
nar, Harvard University.
Sep. 29-Oct. 2— BMA Annual Convention,
Marriott Hotel. New Orleans.
October— IBAA Junior Bank Officer Semi
nar, Ball State University, Muncie, Ind.
Oct. 4-8— ABA 101st Annual Convention,
New York.
Oct. 17-18— Association of Registered Bank
Holding Companies Fall Meeting, Kahala
Hilton Hotel. Honolulu.
Oct. 26-29— Iowa Bankers Association 89th
Annual Convention, Hilton Hotel, Des
Moines.
Oct. 26-29— BAT 51st Annual Convention,
Las Vegas H!lton.
Nov. 2-5— Robert Morris Associates 61st
Fall Conference, Fairmont Hotel, San
Francisco.
Nov. 9-12— ABA National Correspondent
Banking Conference, Century Plaza, Los
Angeles.
Nov. 10-13— Robert Morris Associates 60th
Fall Conference, Hyatt Regency, Atlanta.
Nov. 20-21— Midcontinent Trust Confer
ence, Radisson Hotel, Minneapolis.

Direct Lease Financing
Rose in 1974
Volume of direct lease financing by
the country’s national banks rose more
than $800 million during 1974, reach
ing a level of $2.4 billion at the end of
the year, according to figures released
by Comptroller of the Currency James
E. Smith.
During the same period, the number
of national banks engaged in direct
lease financing operations increased
from 590 to 681. The year end totals
reflect the continuation of a trend
toward both increased volume of direct
lease financing and the growing num
ber of banks engaged in the service.

IB U H i

He just landed that new customer. But
it means a big bite out of his bank balance.
Your advice—don’t panic. When he’s
eyeball-to-eyeball with a cash flow
problem, all it takes is money to stare
it down.
You tell him again it’s still time to
call Talcott in Minneapolis.
Our Business Finance Division can be
his lifeline and get him cash to pay his
bills and restock.
As a banker you know Talcott’s
Minneapolis experts can help him with
financing.
And together we can make sure his
helmet is screwed on straight, before
he takes a dive.

For information, contact James Talcott, Inc. Business Finance
Division, 820 Northwestern Bank Building, Minneapolis, Minnesota
55402 (612) 339-7711.

fitti

Tell himtocall Talcott.
He’s enough to give him the bends.
Just as that slippery new customer seems
to be swimming his way, his cash line
fouls. Suddenly he’s choking for funds.
He comes to the bank for help.
What a breath-m^taking
opportunity.
But he needs
more cash
than you can
float.
You tell him it’s time to call
Talcott in Minneapolis.
We react swiftly to a customers financing
needs at any depth. And your bank might
even want to be a partner with us.
Our Business Finance Division can
surface solutions to most cash problems.
Like raising his collateral treasure to
the top and putting his finances on
firm ground.

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Federal Reserve Bank of St. Louis

i ¡1
i

Still tell himtocall Talcott.

6
reasonable cost by one or more local
financial institutions authorized to re
Comptroller of the Currency James the CBCT area were experimental and ceive deposits, such as a commercial
E. Smith has announced a modifica might require such modifications. In bank, a mutual savings bank, a savings
tion of his interpretive ruling authoriz this regard, he promised to consider and loan association, or a credit union.
ing national banks to establish and use carefully any reports or recommenda
2. A national bank is required to in
customer-bank communication ter tions of the National Commission on clude in its 30 day notice to the Compminals.
Electonics Funds Transfers, whose trailer of intention to establish a CBCT
The Comptroller said his revised statutory life expires in the fall of information about consumer protection
ruling was based upon testimony pre 1976.
procedures, including disclosure to
sented at a public hearing which he
Principal features of the revised rul consumers of their rights and liabilities
held on April 2 and 3, 1975, plus other ing are:
and protection for consumers against
facts which had come to his attention
1.
A mileage limitation has been imwrongful or accidental disclosure of
since the original ruling was issued in posed on exclusive or dedicated confidential information.
December of 1974.
CBCTs. A national bank is forbidden
3. The language of the ruling has
The Comptroller announced that he to establish a CBCT more than 50 been modified to make clear that a na
intended no substantial modification of miles from its main office or chartered tional bank may use a CBCT estab
the ruling for the next 18 months. He branch closest to a CBCT, unless that lished and operated by someone other
noted, however, that developments in CBCT is available to be shared at a than the bank itself. A national bank
may receive and act upon instructions
from customers submitted through a
CBCT owned by another bank, by a
bank customer, or by a third party.
The revised ruling clarifies that nation
al banks will be permitted to partici
pate in statewide EFTS networks such
as those contemplated in Nebraska and
Missouri. In the case of such networks
a different reporting procedure to the
Comptroller is provided so that one
notice may be sufficient for the entire
network, no matter how many national
banks are involved.
The “Thank You” Bank Club is a profession
4. A new provision of the revised
ally engineered, continuous advertising package
ruling excludes from all reporting re
aimed at rapidly increasing—and holding—a
quirements a terminal whose sole func
large num ber of demand deposit accounts at
tion is to accomplish an electronic
your bank. It will help you:
funds transfer in payment for goods
Build Community Goodwill
and services received, and through
Bring in New Customers
which neither cash is dispensed nor
Increase Traffic in Nearly All Bank
cash or checks left for subsequent deDepartm ents
posit. The Comptroller said that he is
AND DO IT PROFITABLY!
not undertaking to regulate such a limThe “Thank You” Bank Club features checking
ited point of sale device. By way of il
account benefits, group travel and insurance for your
lustration of this new provision, most
customers. To you, it offers a continuous, wellof the 6,000 point of sales terminals
serviced community advertising campaign
contemplated in the EFTS network be
at LOW, LOW Cost.
ing planned by Credit Systems, Inc. of
Get in touch w ith us today to learn how
St. Louis, Mo., will not be used to
your bank can better serve your community
receive or dispense cash and thus
—and do it profitably!
would not require 30 days notice from
any bank and would be unregulated
MAIL THIS COUPON TO
by the Comptroller’s Office. On the
Bill Moler,
other hand, a national bank installing
a point of sales terminal through which
Box 934,
cash or cash items are received and
M aquoketa, Iowa 52060.
disbursed — as is done by the HinkyDinky Supermarket terminals for First
N am e_____
_________T itle __________
Federal Savings and Loan Association
of Lincoln, Nebr. — would treat
Bank Name
such terminals as CBCTs and give apA d d ress___
propriate notice to the Comptroller.
5. The Comptroller still adheres to
S tate______
Z ip ,
his postion that an off-premises CBCT
is not a branch bank.

Mileage Restriction On CBCTs

v
r

IF YOU ARE A BANKER
IN A COMMUNITY
OF UNDER 10,000

THE “T H A N K Y O U ”
B A N K CLUB W A S
DESIGNED FO R Y O U !

N o rth w e ste rn

Banker, June

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Federal Reserve Bank of St. Louis

1975

±
*

INDIVIDUAL BANKS
COMMITTED TO MUTUAL GROWTH

The Continental
Correspondent Community
Portfolio Advisory
Service
• Expert Analysis • Timely Evaluations
• Profitable Recommendations
• Continuous Follow-Up
Where correspondents share
a banker’s approach to
investment opportunities.

CONTINENTAL BANK
CONTINENTAL ILLINOIS NATIONAL BANK AND TRUST COMPANY OF CHICAGO

231 S O U T H L A S A L L E S T R E E T , C H I C A G O , I L L I N O I S 60693

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Federal Reserve Bank of St. Louis

N o rth w e ste rn

B anker. June

1975

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

This year Am erican Express Travelers Cheques
will receive more national television support in just
four months than our competition has spent
over the last two years.
Last year was a very7good
year for American Express
Travelers Cheques. In fact,
our best ever.
Mr. Karl Malden helped
as our TV spokesman.
But someone helped
him. You.
You wanted the best for
your customers, so you
pointed out that American
Express is the best brand of
Travelers Cheques they could
buy.
This year is Karl Malden,
Act III. And will be the best
year yet. Because Karl Malden
will be working for you in
the largest and longest run'
ning network TV campaign
in our history. It will be seen

nationally from April until
August. Running heavily in
prime time on all three net'
LARGEST
TV CAMPAIGN IN
OUR HISTORY
Alan King Tennis
Coaches All American
Football Game
Preakness • The Rookies
NFL Championship Games
CBS Sports Spectacular
Baretta • Tony Awards
Caribe • S.W.A.T.
Rockford Files
Lucas Tanner • Police Story
Get Christie Love
ABC Movie of the Week
Sanford & Son
... and many more.

works. And backed by addL
tional spots in major markets
throughout the year.
So more people will see
these commercials than ever
before. People who are your
best customers.
And in every commercial
Karl Malden will be pointing
out how different American
Express Travelers Cheques
really are.
Your customers will know
you’re giving them the best.
American Express Travelers
Cheques.
Have a good
year.
* Based on data
published by Broadcast
Advertisers Reports, Inc.

American Express Company

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Federal Reserve Bank of St. Louis

N o rth w e ste rn

Banker, Jane

1975

ON THE COVER
The importance of the economic
activity generated by international
commerce at the
Port of Duluth
not only tran
scends the bound
aries of the Du
luth-Superior har
bor area but tran
scends the bound
aries of the state
of Minnesota as
well.
To provide the
many people who depend on the port
with the services they expect, increased
growth and expansion have become
the by-words of the Seaway Port Au
thority. With over $120 million in new
port improvements either underway or
scheduled for completion within the
next two years, the head of the Lakes
is moving rapidly to meet what Duluth
Port Director C. Thomas Burke, de
scribes as “the challenge of the Sea
way Seventies.”
The Port will be the first on the
United State’s side of the Great Lakes
to offer a full-service container facili
ty when the construction of a new

Paceco 30 Long Ton capacity Econo
my Portainer crane is completed this
fall at the Clure Public Marine Termi
nal in Duluth.
A new $40 million coal-handling
terminal designed to handle lowsulphur coal being mined in Montana
is being constructed. Of greater im
portance to those engaged in interna
tional shipping activity is a new $33
million grain and grain specialty prod
ucts facility now under construction by
Cargill, Inc., along Duluth’s elevator
row.
Other scheduled harbor improve
ments reflect the diversity of cargo
handled by the Twin Ports:
A new $40 million taconite-handling facility joins six large gravity-fed
ore docks to more efficiently handle
this traditional Head of the Lakes car
go which originates on Minnesota’s
Iron Range.
A $12 million investment by Lakehead Pipeline Co. of Superior is sched
uled for the construction of storage
tanks handling petroleum products and
renovation of its marine terminal for
modern Great Lakes tankers.
(A $6 million program by Incan
Marine, Ltd. has introduced roll-on,

roll-off service between Superior and
Thunder Bay, Ontario.
A $5.5 million investment by
American Hoist & Derrick Co. in a
new hydraulic backhoe manufactur
ing plant at the Clure Public Marine
Terminal is designed to utilize con
venient waterfront access for the in
bound shipping of steel and the out
bound shipment of products.
A $2.2 million expansion of the
grain elevator complex in Superior
operated by M & O Elevators, Inc.,
Minneapolis, will incorporate meal and
grain by-product handling facilities.

Plan Program for NABW
Annual Convention in Honolulu
“Your NABW Ticket to a Great
Adventure” is the theme around which
the programming will turn for the 54rd
Annual Convention of the National
Association of Bank Women, Inc.
Scheduled for October 12-15 at the
Sheraton-Waikiki Hotel, Honolulu,
Hawaii, the convention is being
organized under the general chairman
ship of Jane C. Vasconcellos, assistant
vice president, Bank of Hawaii,
Honolulu.

Make that
double play with
Continental Western

HOME
BUSINESS
AUTO
LIFE

CONTINENTAL WESTERN INSURANCE COMPANY
Phone (515) 278-3000

CONTINENTAL WESTERN LIFE INSURANCE COMPANY
Phone (515) 278-3345
Home Offices:
11201 Douglas Avenue (Interstates 35-80), Des Moines, Iowa 50322
D IVISION S OF CONTINENTAL W ESTERN INDUSTRIES, INC.

N o rth w e ste rn

B a n k e r, June

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

197$

k 1
A

A U T O M A T I C C O IN W R A P P E R
A m o u n ts a n d d e n o m in a tio n s a u to m a tic a lly in d i c a t e d b y
p a te n te d “ r e d b o rd e re d w in d o w s ” . A m o u n t s in w in d o w s
a lw a y s in r e g is t e r . . . e lim in a te s m is ta k e s . A c c o m m o d a te s
a ll c o in s fro m l c to $1.00.

T U B U L A R C O IN W R A P P E R
E s p e c ia lly d e s ig n e d fo r m a c h in e fillin g . . . a re a l tim e -s a v e r.
Packed fla t. In s ta n t p a te n te d “ Pop O p e n " a c tio n w ith fin g e r
t ip p re s s u re . D e n o m in a tio n s id e n tifie d b y c o lo r c o d in g . . . 6
d if fe r e n t s ta n d a rd c o lo rs .

R A IN B O W C O IN W R A P P E R
C o lo r c o d e d fo r q u ic k , e a sy id e n tific a tio n . Red fo r p e n n ie s . . .
b lu e fo r n ic k e ls . . . g re e n fo r d im e s . . . to in d ic a te q u a n tity
a n d d e n o m in a tio n s . . . e lim in a te s m is ta k e s . T a p e re d e dg e s.
D U Z I T A L L C O IN W R A P P E R
E xtra w id e . . e x tra s tro n g D e s ig n e d fo r a re a s w h e re h a lv e s
a re w ra p p e d in $ 20.00 p a c k s . . . " r e d b o rd e re d w in d o w ” fo r
e a s e o f id e n tific a tio n . A c c o m m o d a te s $20.00 in d o lla rs , $20.00
in h a lv e s . T a p e re d e dg e s.

D O W N E Y

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Federal Reserve Bank of St. Louis

B a s ic c o in w ra p p e r in e x tra s tro n g k r a ft s to c k . P rin te d in 6
d if fe r e n t s ta n d a rd c o lo rs to d i f f e r e n t i a t e d e n o m in a tio n s .
T r i p le d e s i g n a t io n t h r o u g h c o lo rs , p r i n t i n g a n d le tte rs .
T a p e re d e d g e s .
K W A R T E T C O IN W R A P P E R
W ra p s 4 d e n o m in a tio n s in h a lf size p a c k a g e s . A m in ia tu r e o f
th e p o p u la r “ A u to m a tic W ra p p e r” . . . 25c in p e n n ie s , $1.00 in
n ic k e ls , $2.50 in d im e s , $5.00 in q u a rte rs .
F E D E R A L B IL L S T R A P
P a cka ge c o n te n ts c le a rly id e n tifie d o n fa c e s a n d e d g e s b y
c o lo r c o d e d p a n e ls w ith in v e rte d a n d re v e rs e fig u re s . M a d e
o f e x tra s tro n g s to c k to a s s u re u n b ro k e n d e liv e rie s , O n ly p u re
d e x trin e g u m m in g u sed .
C O L O R E D B I LL S T R A P
E n tire s tra p is c o lo r c o d e d to id e n tify d e n o m in a tio n . P rin te d
a m o u n t a p p e a rs o n to p a n d b o tto m o f p a c k a g e . E xtra w id e
fo r m a rk in g a n d s ta m p in g E x tra s tro n g s to c k fo r s a fe d e liv e ry
a n d s to ra g e . P u re d e x trin e g u m m in g .

B A N D IN G S T R A P S
Id e a l fo r p a c k in g c u rre n c y , d e p o s it tic k e ts , c h e c k s , e t c . . . . d o n o t b re a k
o r d e te rio ra te w ith age. S ize 10 x \ in c h e s a n d m a d e o f s tro n g b ro w n
K ra ft s to c k w ith g u m m e d e n d fo r e a s e o f s e a lin g P a cke d 1000 to a c a rto n .

SEE

THE

OLD S T Y L E C O IN W R A P P E R

YOUR

D E A L E R

C O M P A N Y

•

S E N D

FOR

FREE

H A N N IBA L,

S A M P L E S

M I S S O U R I

N o rth w e ste rn

D E P

Banker, June

N
19 7 5

DAKTRONICS
displays giv

Bank Promotions and Changes
and other news an
P ROMOTIONS
nouncements have been made by
the following banks:
The American National Bank and
Trust Company, Chicago: Four new
vice presidents have been named:
Alberta I. Wuerfele, comptroller’s divi
sion; Charles L. Garry, auditing;
Andrew B. Albert, international bank
ing, and Robert F. Donovan, retail
banking. Named second vice presi-

A. I. WUERFELE

C. L. G A R RY

A . B. ALBERT

R. F. D O N O V A N

IMPACT
A Daktronics display is the etficient
a d v e rtis in g m edium th a t c re a te s
traffic, new business, image and pro
vides community service.
Daktronics has taken the service ex
pense out of time and temperature disp la y s w ith 100% s o lid s t a t e
electronics.
Our engineers will custom design a
time and temperature display, that will
enhance the appearance of your facili
tyCall or write us today! Daktronics
will give you the edge over your com
petition with 100% solid state displays.

MESSAGE CENTERS

Daktronics offers entirely solid state
message display centers with chang
ing and traveling messages, and time
and temperature information.

DAKTRONICS, INC.
BOX 299

BROOKINGS. S.D. 57006
PH, 605-692-6145

b ia rth w e tte m

B a n k e r, June

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

1975

dents are Theodore C. Axton, real
estate; David S. Brown, Jr., Philip M.
Firrek, John W. Eyler, Gary A. Johns,
Jerry G. Langley and Randal B. Nel
son, commercial banking.
Commerce Bancshares, Inc., Kansas
City, Mo.: Warren W. Weaver has been
elected executive
vice president.
Mr. W e a v e r
joined Commerce
Bank of Kansas
City, N. A. in
1968 as a vice
president in the
commercial bank
ing division. He
became director
W . W . W EA VER
of marketing for
that bank and later served as manager
of the BankAmericard center. In 1972
he was elected vice president and di
rector of marketing for Commerce
Bancshares. ,

Kirk F. McConachie has been ap
pointed an assistant vice president of
the holding company. He will serve as
managing officer of Capital for Busi
ness, Inc., a federally licensed small
business investment company affili
ated with Bancshares.
Also announced was the promotion
of Donald L. Moriarty to senior vice
president of the Commerce Bank of
Kansas City. Walter D. Dotson has
been elected assistant vice president.
Also, three vice presidents have
been elected: Joseph R. Bartels, in
charge of the bond portfolio and loan
participation programs; Ernest A.
Thompsen, Jr., loan administration,
and Norman T. Williams, Greater
Kansas City region.
The First National Bank of Chica
go: William T. Dwyer, vice president
in charge of Division F (corporate
banking department), has announced
a realignment of territories and per
sonnel.
Arthur Stake, vice president, will
continue to assist Mr. Dwyer and head
the central division. Tom King, vice
president, will head the territory and
report to Mr. Stake. Mr. King’s states
will include Minnesota, Wisconsin, Illi
nois, Iowa, and Indiana. Clarence
“Bud” Cross, loan officer, and Dennis
Duffy, assistant to officers, are among
eight people reporting to Mr. King.
They will travel the lowa-Minnesota
area.
Garth Dunn, Jr., vice president, will
head the western division, which in
cludes Nebraska, Wyoming, and Colo
rado in the N orthwestern B anker
area. Working with Mr. Dunn will be
John W. Ballentine, loan officer.
Heading the eastern division will
be Jack W. Hallberg, vice president.
Mr. Hallberg has traveled in the east
and southwest. He is also known by
bankers in the middlewest through
previous travels for The First.
Nevin Bowser, vice president, who
headed the former northwest divi
sion, has joined the bond department
of The First, as previously announced
in the N orthw estern B anker .
Manufacturers Hanover Trust Com
pany, New York; J. Nicholas Hurd,
vice president has been appointed
manager of the western district replac-

Strong tie:

you and us.
.»

Here at Citibank, we are committed—you could even say dedicated—
to the principle of cooperation with our correspondents. We regard any project
on which you enlist our help—or w e yours—as a joint endeavor, in which
each of us has an indispensable part. And in which we work together, sharing
interests and resources and experience, to achieve a common objective.
Not surprisingly, that makes for close, continuing and mutually
beneficial relationships—which is what correspondent banking is all about.
Because good correspondent banking, as we see it, has a single, significant
purpose: to strengthen and expedite and make even more effective
what either of us could accomplish alone.
Without, incidentally, leaving any loose ends.

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

N o rth w e ste rn

B anker, June

1975

J. N . HURD

J. R. BRO KKEN

ing William C. Langley, Jr., who has
assumed duties as officer-in-charge of
the bank’s corporate planning depart
ment. James R. Brokken has been
promoted to vice president in the west
ern district.
Mercantile Trust Company, St.
Louis: James F. Mauze’ has been
elected a senior vice president with
general administrative responsibilities

J. F. M A U Z E ’

S. A . M O N T G O M E R Y

The Northern Trust Company, Chi
in the trust department. Mr. Mauze'
is chairman of the Missouri Public cago: E. Norman Staub, president, has
Service Commission, Jefferson City. been elected a vice
He was first appointed in March, 1971, chairman. After
and was reappointed and designated the retirement of
chairman by Governor Christopher S. Douglas R. Ful
Bond. Prior to that he served as law ler, vice chair
clerk to Judge M. C. Matthes, chief man, at the end of
judge, United States Court of Appeals 1975 Mr. Staub
for the Eighth Circuit and practiced will become the
law with the firm of Schoenbect and second ranking of
ficer of the bank.
LaTourette, St. Louis.
Scott A. Montgomery has been The board also
E. N . STAUB
elected a vice president in charge of has elected Philip
the bank’s metropolitan division II of W. K. Sweet, Jr., a director and has x
the St. Louis Group on the banking de named him president to succeed Mr.
partment. Jerome S. Goldstein recently Staub. Mr. Sweet formerly was execu
joined the company as a vice president tive vice president.
Elected executive vice presidents are
in charge of financial services. He
formerly was Citicorp’s director of W. James Armstrong, who will constrategic planning for Nationwide Fi
nancial Services Corporation.
Two new directors have been
elected at Mercantile Bancorporation,
Inc., parent holding company. They
are Richard P. Conerly, president and
chief executive officer, Pott Industries,
Inc., and Vincent T. Gorguze, presi
dent, Emerson Electric Co. Both men
are directors of Mercantile Trust Com
pany.

we’ve got some
pretty big shoes
to fill!
We're out to prove ourselves. To show we're a
worthy member of the Mutual of Omaha family —
the largest individual and family health insurance
company in the world.
It's a tough reputation to live up to!
Because Mutual of Omaha has been known for years
for their service. And quality. And strength.
And we're determined to make and maintain that
same kind of reputation.

So we're striving for excellence in quality. To be the
best in providing service. Innovative in our products.
Creative in our sales tools.
And we're ready to prove it to you! Let us show
you our comprehensive credit insurance program
and what it will do for you. We think you'll like
it. So write us. Or call us. Collect.
The shoes are big. But we're growing every day. Just
ask any of our 22 new Iowa accounts last year.

St. PoulfT)
Hospital & Ciisu.iltij®Xl^
4 Mutihjl nt ()moha ( 'ompiinq

Full Service Credit Insurance Programs
Dodge at 33rd Street * Omaha, NB 68131 • (402) 342-7600, Ext. 2910 «Home Office: P.O. Box 1711 • St. Paul, MN 55111 • (612) 854-4515
N o rth w e s te rn B anker, June

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

1975

a
^

101

JA M E S C . M O R R IS O N
1765 SHERIDAN DRIVE
YOUR CITY, U .S .A . 12345

Dollars
DELUXE N A T IO N A L STATE B ANK
YOUR CITY , U.S.A. 12345

:2 3i,5»'6?0Si:

Ì23L5&7BH

■3— 1.....-I

our Spirit of America checks with ten memorable
scenes from the American Revolution, special
cover, enclosure and wood grain box. For your
bank, we have commemorative prints or scrolls,
lobby displays, newspaper ads, material for
radio or TV.
But the time is now for the Bicentennial is
nearly at hand. Ask your DeLuxe representative
about this exciting new program.

The Spirit of America. One phrase that recalls the
unyielding dedication of our founding fathers to
freedom. The courage and sacrifice that created
a nation. The vision that is America.
In a short time we will be in celebration of that
heritage. Preparations are already underway. For
our part, we have introduced a commemorative
check package that is a vivid recall of history.
It’s a complete Bicentennial program featuring

CHECK PRINTERS, IN C .
SALES H D Q T R S .

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

•

3440 N. K E D Z IE , C H IC A G O , IL L . (»0618

•

S T R A T E G IC A L L Y L O C A T E D PLA N TS FR O M C O A S T T O C O A S T

tional Automated Clearing House As
sociation (NACHA).
“At the present stage of ACH de
velopment, this show will be a unique
ly valuable education tool to all those
involved in the ACH movement,” said
Virgil M. Dissmeyer, chairman of the
NACHA education/communications
committee.
Mr. Dissmeyer, who is also senior
vice president at the Northwestern Na
tional Bank of Minneapolis, noted that
“the show is designed to be used by
representatives of ACH groups as a
discussion starter in presentations to
bankers, groups of corporate officers
or consumers.”
The show is built in three modules.
The first section, about half the show,
concentrates on the ACH concept and
benefits for consumers. The second
section addresses corporate interests.
The third section focuses on a bank’s
role in and benefits from automated
clearing houses.
The show was originally produced
by Regional Payments Exchange, Inc.
(REPEX) and Applied Communica
tions, Inc. (APCOM ), both of Dayton, Ohio, for the promotion of that
area’s automated clearing house.
APCOM revised the REPEX show to

tinue as head of the banking depart
ment; Louis F. Dempsey, who will
continue as head of the international
department; Lawrence W. Gougler
who will continue as secretary and
Stuart Hamilton, who will continue to
head the operating department. All
formerly were senior vice presidents.
Other promotions include: banking
department — Marvin D. Swanson,
vice president, and Bertrand W. Ellis
and Edward Byron Smith, Jr., second
vice presidents; and systems and
planning department — James F.
Bodine, second vice president and
David K. Barclay, manager.
United Missouri Bank of Kansas
City: Marlin L. Koelling, who has
been with the bank for 10 years, has
been promoted to senior vice president
from vice president and Sharlyn An
derson, who joined the bank in 1970,
was elected assistant cashier. Mr.
Koelling heads the real estate loan di
vision.

NACHA Produces ACH
Sound and Slide Show
An educational sound and slide
show describing the concepts and ben
efits of automated clearing house ser
vices has been produced by the Na-

make it nationally usable for NACHA.
The entire show runs approximately
12 minutes. The package contains 122
35mm slides and three audio cassettes.
Each cassette will automatically start
and stop the presentation for the ap
propriate audience — consumer, cor
porate or banking.
Copies of the show may be pur
chased from NACHA for $265. Or
ders should be directed to William R.
Moroney, Communications Group,
American Bankers Association, 1120
Connecticut Ave., N.W., Washington,
D.C. 20036.

Bank Building Publishes
Awards Brochure
Bank Building Corporation, St.
Louis, Mo., has recently published a
brochure describing the winners of
their third Design Awards program.
The brochure illustrates the 12 finan
cial institutions that received the First
Design Award, Awards of Excellence,
and Awards of Merit in the 1974 De
sign Awards competition.
For copies, address Public Relations
Department, Bank Building Corpora
tion, 1130 Hampton Avenue, St.
Louis, 63139.

»JA*

V 1
^

N o rth w e s te rn

B a n k e r, June

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

1975

vc.

. i ? '4/

Mr.Traveling Credit smooths the way between
bank and you for inventory loans
Y o u ’ re lo o k in g fo r s o lu tio n s and answ ers, not m ore
p ro b le m s . D o u g la s -G u a rd ia n T ra v e lin g C re d it h e lp s c le a r
th e w ay fo r in v e n to ry loa ns by:
• E s ta b lis h in g a fie ld w a re h o u s e at the location of

your inventory.
• S e c u rin g y o u r loa n w ith s p e c ia l a u d itin g p ro c e d u re s .
• C u ttin g th e p a p e r w o rk w ay d ow n b etw e en you and
y o u r bank.

Call Mr. Traveling Credit today for details:

Douglas-Guardian Warehouse Corporation
P. O. Box 5 29 78 , New Orleans, La. 7 01 52 , Phone (5 0 4 ) 5 23 -5 3 5 3
O ffices in 15 p rin cip a l cities

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

N o rth w e ste rn

Banker, June

1975

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

“The key difference between our
Directors’ & Officers’ liability insurance and
others is an exclusive combination of features
that give banks total coverage.”
Dennis L ayne,
Chief Operating
Officer, D & O
D ivision of MGIC
Indemnity Corp.,
explains how our
highly specialized
D irectors’ and
O fficers’ liability
policy provides
com prehensive
protection for banks
w hen a law su it
strikes.

“Each of MGIC’s special
features—in combination
with “standard” features—
interacts to provide exclu
sive total protection. Very
important is waiver of
exclusions. If your board
legally indemnifies your
officials, exclusions which
would otherwise limit cov
erage no longer apply. Also,
deductible options from
$2,500 to $20,000 or more
provide higher coverage at
very low cost. Other features
include protection for retired
officers and directors, and
an extended coverage option
with full original limits of
coverage when a policy is
cancelled or not renewed.
“ Perhaps the most im
portant difference
between our policy and
others is the way our
individual limits can pro
tect you in case of
lawsuits.

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

“As an example, let’s take a
million-dollar coverage pol
icy. Most provide just a
simple total annual limit of
one million dollars. Not ours.
MGIC lets you choose a
million dollars of coverage
for each individual director
or officer, no matter how
many you have. This means
many millions of extra cov
erage in case of multiple
lawsuits in a given year.
“ Should a lawsuit strike,
we support you all the
w ay—the w ay you want.

“Some D & 0 insurers take a
very strong stand and take
over the case, period. Some
avoid any involvement.
We like to act as a helpful
partner. For example, when
you tell us about a lawsuit,
you have the right—with our
approval—to select counsel.
Then we’ll work with you
on any significant steps that
are taken. What we don’t
like to do is take control,
because we believe no out
sider should determine the
proper course for you in such
a serious situation. After all,
it isn’t only money that’s
involved, the reputations of
the individuals and the
institutions also are at stake.

we are thoroughly familiar
with bank operations and
needs. Our underwriting, we
think, is of higher quality
due to this expertise. So,
when you join the more than
1,400 financial institutions
insured by MGIC, you’re
keeping good company.
“ For a point-by-point
comparison between
MGIC and any other D & O
policy, w e’ll be happy
to talk with you, or your
attorney.

“You may feel more com
fortable having your attor
ney contact us because he’s
the expert you head for fast
when threatened with a law
suit. And he’s probably best
qualified to help you make
the right decisions on cover
age. He’s also probably best
able to show you what we
mean by “total protection”
and why, dollar-for-dollar,
you get a better value with
MGIC Directors’ and Offi
cers’ liability insurance. So
for the full story, I suggest
either you or your attorney
call me or our Marketing
Director, Art Barnard,
toll-free, at 800-558-9900.
Or write today.”

“ Ours is the one policy
specifically designed for
banks.

“When you buy from us, you
get insurance specially tai
lored to your needs, right
down to the application
form. As a subsidiary of
MGIC Investment Corpo
ration (a respected member
of the financial community),

MGIC

Total D & O liability protection.
And we mean total.
MGIC Indemnity Corporation
A Subsidiary of MGIC Investment Corp.
MGIC Plaza, Milwaukee, W l 53201
N o rth w e ste rn

Banker, June

1975

Do you want to open
direct deposit accounts
for Senior Citizens?
You can open hundreds of d ir e c t d e p o s it accounts for Social
Security checks by reaching Senior Citizens directly at their
home addresses.
Here is an opportunity to otter a service designed tor people 62 or over. Each month
Senior Citizens in your community receive Social Security checks...now, you can
write to them ottering a new service where their monthly checks are de
posited directly to their checking account at your bank.
By having their checks mailed directly to your bank by the U.S. Government and
immediately credited to their checking account, you are ottering them convenience
and satety. They are assured ot tunds being immediately deposited and readily
available. It eliminates check cashing problems and provides uninterrupted depos
its. It reduces operating costs and generates increased deposits, new depositors,
and improved customer relations.
There are 21.3 million people 62 or older who receive Social Security benefits. In
the University of Michigan Institute for Social Research 1971-72 Survey of Con
sumers revealed this market segment have h ig h s a v i n g s p o t e n t i a l and a h ig h d e g r e e
o f l o y a l t y . [63% maintained accounts for 10 or more years/38% had accounts of
$5,000 or more.]
To help you to promote a d ir e c t d e p o s it Program to the Senior Citizens in your com
munity, we can provide a current mailing list of the names and addresses of elderly
married couples, widows and single persons over-62 on personally-addressed
gummed mailing labels in zip numerical sequence that you can readily affix to your
envelopes, at the rate of $40.00 per thousand names for one-time use.
Once you select the cities and towns in your service area and send us your order,
we will air mail your Senior Citizen mailing list on gummed labels in two weeks.
Most important...you are assured of a 60-day exclusive of the Senior Citizen bank
ing market in your service area, so you can secure the greatest number of Senior
Citizens d ir e c t d e p o s it accounts.

Please send information on your 1975 Senior Citizen list for the following cities/
towns/zip codes:

»I

Name

Bank
;

Phone

___________________________ .

Address_______________________________________________
City_______________________ State___________________ Zip

Call (9 1 4 ) 632-1 595 or 779-8585

SENIOR CITIZENS,u n l im it e d
273 Columbus Avenue, Tuckahoe, N.Y. 10707
Digitized
N o rfor
t h wFRASER
e s te rn Banker, June
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

197S

Corporate News
P R O M O T IO N S and other news announcements have been made by
the following firms:
American Breeders Services, I)e
Forest, Wise.: Donald Chambers and
Gilbert Horn have been appointed Ne
braska district sales managers.
Tom Casey has been named vice
president, operations and administra
tion, of the Chi
cago region. Mr.
Casey is a 1967
graduate of Mar
quette University
and j o i n s the
company f r o m
J a m e s Talcott,
Inc., a m a j o r
commercial
fi
T. CASEY
nance company.
American Express Company, New
York: James T. Larkin has been pro
moted to v i c e
p re s id e n t—mar
keting and sales
for the Travelers
Cheques division.
He came to the
division as vice
president— in te r
national in 1970
from the Ameri
can
Broadcasting
G. N . BOYER
Companies where
he was director of international busi
ness affairs. Prior to 1958 he was a
sales administrator with Ford Motor
Company.
Bank Building Corporation, St.
Louis: The corporation has announced
the move of its central division from
St. Louis county to corporate head
quarters. The new address is 1130A
Hampton Avenue, St. Louis, Mo.
63139. The central division is one of
five regional divisions and covers a
nine-state area in the midwest.
Financial Security Group, Inc.,
Washington, D . C.: Robert D. Edison
has been elected president succeeding
Josef S. Tressler who was elected vice
chairman, according to George Olm
sted, chairman. Mr. Edison, formerly
vice president, joined Hawkeye-SecuriCORPORATE NEWS . . .
( Turn to page 22, please)

Bob Ramaley, North Central Life Assistant Vice-president, is shown discussing group mortgage
insurance with Harlan Nygaard, president, Knutson Insurance Agency, Minneapolis.

THINK OF BOB
AO YOOR MAN
ON 00R PAYROLL!
>

Bob Ram aley is a N orth C en tral Life R edcoat. A d ed ica ted
insurance professional in the fullest sense of the w ord. Although
we carefully selected him and pay him , he really works for you.
His job is to show you how to effectively and profitably m er
chandise insurance services to your custom ers right along w ith
your savings, checking, lending and oth er services.
Bob is backed by a team of hom e office pros whose b len d ed
skills form the u ltim ate in custom er collaboration — “Red
C oat Service” .
“Red C oat Service” , (exclusive w ith N orth C en tral, and one
of the reasons why w e’re considered the leader in insurance
through financial institutions), provides tailored-to-your-needs
insurance program s; creates d irect mail and point-of-purchase
m aterials for you; shoulders your ad m inistrative and book
keeping chores; and, w here necessary, even to tally trains
vour staff.
And, im portantly, “Red C oat Service" gives you access to
the Red C oat Desk — N orth C en tral's unique, toll-free, direct,
national H O T -L IN E system th at links you to our hom e office

and makes available three vital benefits: (1) N O -L IM IT C R E D
ITO R INSURANCE. A program th at allows you to get im
m ediate over-the-phone approval for extended coverages
beyond the lim its for w hich you norm ally can co n tract. (2)
INSTANT RATE CALCULATIONS. N orth C en tral can solve
your co m p licated rate problem s in a m om ent, via com puter,
w henever you have need for im m ediate calculations. (3) Instant
answ ers to your questions from N C L ’s Red C oat specialists.
North C en tral sets the whole thing up for you. And con
tinually solves any problem s for you as you go along.
W h at do you do? Make money! And p ro tect your custom ers
from the unexpected.
For m ore inform ation on how Bob, or any oth er of N orth
C e n tra l’s expert fieldm en can w ork for you, call th e Red
C oat Desk at th e num bers shown below :
Wis., N Dak., S Dak.. Ia„ Nebr. ■( 800) 328-1612
Minn.- ( 800 ) 792- 1030 ; All Other Areas - ( 800 ) 328-9117

North Central Life Insurance Company
NORTH CENTRAL LIFE BUILDING, 275 EAST FOURTH STREET ST PAUL. MINNESOTA 55101

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

N o rth w e ste rn

Banker, June

19 75

Continental Plans More EFTS Uses
Plans for further rapid expansion in
to electronic funds transfer activity in
volving distant computer terminals
were unveiled by Continental Illinois
Corporation at its annual shareholders
meeting.
Recently the corporation’s principal
subsidiary, Continental Bank, an
nounced it would open three customerbank communication t e r m i n a l s
(CBCTs) about July 1 at 30 N. La
Salle Street, in the Illinois Center com
plex on Wacker Drive, and in the
Bankers Building at Clark and Adams.
Two new moves into the electronic
transfer field were announced
-— Effective July 1 all Continental
Bank checking customers will be
guaranteed a check-cashing ser
vice at 60 Dominick’s food
stores in the Chicago area upon
presentation of their Continental
banking cards. Currently this
system, which was installed in
1974, consists of terminals con
nected to the bank that accept
only Master Charge and Domi
nick’s personal check-cashing
cards to pay for purchases.

— Continental is developing a
package of similar check-cash
ing card and automatic tellercard services for its correspon
dent banks to allow them to of
fer more convenience to their
customers.
The three CBCTs announced re
cently will handle a wider variety of
personal banking services than the
Dominick’s teller terminals, but both
machines are activated by the magneti
cally-striped Continental banking card
and are hooked into the bank’s com
puter system.
The announcement said the bank’s
cards will be used at “other future lo
cations throughout the network we en
vision in metropolitan Chicago.”

CSBS Elects Officers
James E. Faris, director of financial
institutions of Indiana, has been
chosen president and chairman of the
Conference of State Bank Supervisors.
The Conference represents the bank
commissioners of the 50 states, Guam,
Puerto Rico and the Virgin Islands
and numbers approximately 6,000
state-chartered banking institutions as
supportive associate members.

Other officials elected are: John B.
Olin, superintendent of banks, Oregon,
first vice president; Harvel C. Adams,
bank commissioner, Arkansas, second
vice president, and Harry Bloom, state
bank commissioner, Colorado, secre
tary-treasurer.
W. Smoot Brimhall, commissioner
of financial institutions, Utah, will
continue to serve as past president.

RMA Releases
New Publication
The importance of the credit depart
ment in training future commercial
banking officers is the subject of a new
publication just released by Robert
Morris Associates (RMA).
“The Credit Department: Its Role
in Training” is the first of four paper
backs that RMA will issue over future
months on various credit department
functions. It was authored for RMA
— the national association of bank
loan and credit officers — by Charles
S. Dickerson, senior vice president,
First National Bank of Princeton, N.J.
Two free copies of the new booklet
were sent to each of RMA’s 1,525
member banks. Additional copies are
$3 to member banks and $5 to non
member banks, from the RMA Nation
al Office, 1432 Philadelphia National
Bank Bldg., Philadelphia, Pa., 19107.

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CHICAGO, ILL. 60611

(3 1 2 ) 7 8 7 -8 5 0 0
N o r for
t h wFRASER
e s te rn Banker, June
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1975

CORPORATE NEWS . . .
{Continued from page 18)
ty Insurance Company, a subsidiary,
in 1948. He was named president of
Hawkeye-Security and United Securi
ty Insurance Company, another sub
sidiary, in 1969. Last year he was pro
moted to president of a third
subsidiary, Northeastern Insurance
Company of Hartford. He will remain
president of all three subsidiaries.
Lawrence Systems, San Francisco:
James T. McGuire has been elected
e x e cu tiv e vice
president, general
counsel and secre
tary of this fin
ance and security
subsidiary of IN A
Corporation. He
joined Lawrence
as assistant coun
sel in 1952. Prior
to that he was a
j . T. M cG U IR E
special, agent with
the F.B.I. Lawrence provides financial
services to banks and their industrial,
commercial and agricultural customers.
Meilink Bank Equipment, Toledo,

Ohio: Allen Mossier of Bankers CoOp Inc., is now responsible for the
company’s sales efforts in northern
Illinois. David Summers represents
Meilink’s in Idaho, Nevada and the
eastern part of Oregon. Mr. Summers
is vice president and sales manager of
Summers Office Supplies.
Scarborough & Co., Chicago: Jay
Mosberg and Tom Ritter, Jr., have
joined the company as account execu
tives. Mr. Mosberg previously was a
personal lines manager at Reserve In
surance Company and also has worked
for Kemper Insurance. Mr. Ritter
formerly was director of marketing,
planning and research for Zurich
American insurance Company. He
also has worked for Fireman’s Fund
Insurance Company. He will be in the
special risks department.
James Talcott, Inc., New York:
James L. Mixa has been elected an
assistant vice president and Muriel C.
Holmes assistant secretary of the fac
tors division. Both are located in the
Los Angeles district office.

Don't put this sign on your door unless you have HLS.

B u rg la rs love h o lid a ys too.
They welcome the chance to
w ork in peace for hours, even
days. Every long w ee ken d
sees an average of 4 bank
burglaries.
You say you have a securi
ty system?
Fine. Provided you have
hi-line security, too.
Until recently, line security
was the weak link in all sys
tems. Sophisticated burglars

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

could com prom ise lines, thus
keeping alarms from reaching
m onitoring stations.
The Mosler HLS is an auto
matic, random-pulsed, question-and-answer hi-line security
system that has never been
c o m p ro m is e d in m o re than
2,000 installations.
Add Mosler HLS line se
curity to the unmatched basic
protection of a bank alarm sys
tem by Mosler. Now you have

real s e c u rity . Let the long
weekends come. Relax. Y ou’re
as burglar-proof as you can get.
W ell be glad to tell you
more. Just drop us a line.

Mosler
An American-Standard Company
H A M IL T O N , O H IO 4 5 0 1 2
N o rth w e ste rn

Banker, June

1975

Plug into our
correspondent
banking services.
When it comes to taking care of your cor
respondent banking needs, Bank of America
has no shortage of energy or experience. Our
worldwide capabilities allow us to perform
all the functions of a good correspondent
bank, we think just a little better than any
one else. For example, we can help negotiate
foreign trade transactions; process transit;
assist with loans; make short-term securities
go a long way; and, through it all, keep your
customers as satisfied with you as ours
are with us.
So why not save yourself some energy
and plug into our services soon? We’re the
bank with power to spare.

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

B A N K of AMERICA
C o rre s p o n d e n t Bank S ervice

25
T

%
-

How B ankers Fight
the Bad Cheek B attle
A N o r t h w e s t e r n B a n k e r Survey
LADY accompanied by two chil fering between banks in smaller com
dren recently walked into the munities where most of the customers
are known to bank employees and
>
State Savings Bank in Fayette
ville, Ark., and opened a checking ac larger companies where customers are
not known to employees.
count.
. v After opening the account with a
The new accounts department at
$50 deposit, she proceeded to write Marquette National Bank, Minneapo
’ $100 worth of checks at retail estab- lis, has adopted a dual system of
v lishments and to withdraw $40 from identification prior to opening each
her account, all in the same day.
account, according to Kenneth A.
The bank has not heard from her Alango, assistant vice president.
since.
This story is all too familiar to
Proper Identification
. bankers and retailers alike. Bad check
First, a checking reference is ob
writing is prevalent and seems to be tained from the individual’s current or
on the increase in many areas. How- previous banking establishment or
_ ever, bankers, bank associations and verification of his employment is made,
retailers are on the attack.
Mr. Alango said. “Proper identification
- > The N orthwestern B anker staff should be presented at all times,” he
recently surveyed a varied group of commented. “If there are doubts about
people to find out how banks are open- the individual, no check blanks are
a ing checking accounts, what specific
given until references or employment
programs are being used to help allevi are verified.
ate the bad check problem and what
“Secondly, each person is screened
l , is seen as a more long term solution.
through a reporting agency called Chex
The survey revealed several meth- Systems, Inc., which compiles a list of
- ods for opening checking accounts dif- individuals whose checking accounts

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Federal Reserve Bank of St. Louis

have been closed by area banks for
unsatisfactory handling.
Checking accounts at the First Na
tional Bank of Des Plaines, 111., are
opened only by experienced staff
members, many of whom have been
tellers at one time, says Russell A.
Johnson, assistant vice president. The
staff tries to obtain as identification
previous bank references, employer,
drivers licenses and other sources.
“Check orders returned for non-de
livery are immediately turned over to
the bank’s auditor for investigation,”
Mr. Johnson said, “and account activi
ty is closely monitored during the first
10 calendar days on all new accounts.”

Fixed Dollar Amount
He said that the bank, which had
$128 million in deposits on Septem
ber 30, 1974, has established a fixed
dollar amount that tellers can cash
without referencing a signature card
or computer printout of balances.
“ Beyond that amount strict operatN o rth w e siern Banker, June 1975

“Banks probably accept new accounts without
much question because of the competition.”
ing procedures are in effect that are
closely adherred to,” he stated.
“Finally, we try to strictly enforce
cashing checks for only bank custom
ers. Exceptions to this policy must
bear officer approval. Our local Cur
rency Exchange handles a percentage
of our rejected transactions.”
James Soltau, assistant cashier at
the Bank of Lisle said the problem
seems to be growing at a rapid rate in
the suburban area where his bank is
located. Checking accounts are opened
for anyone over 18 years of age who
has proper identification, usually a
driver’s license. A credit inquiry is
sent to the former banks.
“Temporary checks are only issued
if the customer makes a substantial de
posit,” he added.
Gel S.S. Card
Ralph Kusler, vice president and
cashier of the $21,919,813 Farmers
& Merchants Bank and Trust Co.,
Aberdeen, S. D., describes the opening
of checking accounts in his bank this
way:
“At our bank, we primarily have
two people with the responsibility of
opening new checking or savings ac
counts. We require some form of
identification from customers if they
are not known to the personnel in the
bank at the time they are opening a
checking account. Normally we would
like to get their Social Security card
since we are required to have their
Social Security number, and if
suspicious, the girls opening the new
accounts might also require some other
identification such as a driver’s license.
“We automatically order out per
sonalized checks for all of our custom
ers and therefore request all new ac
count customers to use these personal
ized checks. If we have any previous
information which would indicate that
this customer has been writing bad
checks at other banks, we can and
have refused to open checking ac
counts for the customer.”
Mr. Kusler said he didn’t think the
problem of writing bad checks was
found only in larger cities because the
problem was prevalent in Aberdeen.
Digitized
N o r for
t h wFRASER
e s te rn B a n ker, June
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Federal Reserve Bank of St. Louis

1975

“We try to aid the merchants in that
if we have a customer who is writing
bad checks, we do require the custom
er to come in and close out his ac
count. Since the penalty for writing
checks on closed accounts in South
Dakota is more severe than the penal
ty for writing insufficient funds checks,
we hope, in this way, to discourage the
customer from writing any checks.”

Strong Competition
Checking accounts are opened in a
similar way at the $40,824,000 Com
mercial National Bank and Trust
Company, Grand Island, Nebr.
The bank asks for basic information
but does not confirm it and normally
accepts everyone who wants to open
a new account, according to Howard
L. Peterson, senior vice president and
manager of the marketing department.
The bank gives temporary checks to
the customer when he opens the ac
count with a deposit or if he is known
by a bank employee to be reputable
without a deposit, he explained.
“ Banks probably accept new ac
counts without much question because
of the strong competition,” he com
mented. “The Grand Island Chamber
of Commerce initiates forgery informa
tion which is passed on to the neces
sary institutions.
“Bad checks don’t pose as great a
problem with us as they would in the
larger cities because of the smaller vol
ume of people being served,” he said.
“In a larger bank, most customers are
personally unknown which makes it
easier for them to write bad checks
with false identification.

“With money becoming increasingly
tighter, bad checks will probably in
crease substantially, this being a con
venient way to borrow money.”
Tellers are Trained
Checking accounts are opened in the
eight banks and 197 branches in Neva
da the standard way, according to Jor
dan J. Crouch, executive manager of
the Nevada Bankers Association. A
person identifies himself, fills informa
tion on a regular signature card, re
ceives normally 10 starter checks and
additional checks are mailed to him.
“In the large banks, training for new
accounts tellers is continually being
employed,” he said. “For the smaller
banks, training is by an older employee
on the job.”
Mr. Crouch said he thought the
problem was found principally in
larger cities and that in Nevada, high
mobility and the resort and gambling
features of the economy made bad
checks an ever-increasing problem.
“Most banks in this state have check
guaranty cards, some with photos,
some not,” he commented. “Checks
are guaranteed for $100 in cash and
$500 in purchases. The losses in this
have been nominal and the check cash
ing card is a great boon to the markets
and merchants in the state of Nevada.
A check cashing card, however, is not
issued to a person unless he has had
an account in a Nevada bank for at
least a year and has handled it satis
factorily.”
“We have a grace period of 10 to
15 days before new account checks are
issued,” said Charles S. Leavitt, execu
tive director of the Idaho Bankers As
sociation. He told the staff that all ma
jor banks in the metropolitan areas
have covered the subject of bad checks
in training for their employees very
thoroughly and that it is a continuing
area of training for both new and old
employees.
Specific Programs
Both banks and banking associa
tions have confronted the problem
with specific programs.
The Minnesota Bankers Association
and the banks of Minnesota have been
heavily involved in several major proj-

27
ects on the bad check problem over the
past several years, according to Wayne
A F. Berthiaume, MBA administrative
assistant. The special MBA checking
< accounts standards committee has
made many key actions and recom
mendations.
Over the past six to seven years ap
proximately six to 10 meetings with
merchant associations have been held
to discuss the problems, Mr. Berthi
aume said.
>
“On October 26, 1970, a meeting
sponsored by the MBA was held with
approximately 70 retail firms from the
i suburban Twin Cities area. The clinic
was two hours in length with presenta
tions and discussion by a retailer, law
enforcement official and banker,” he
stated. “Following the clinic, materials
were developed for use by bankers and
MBA staff when holding meetings with
v local retail groups.”
Mr. Berthiaume said the guidelines
used include The Minneapolis Police
*• Department’s guideline for cashing
checks, which was reviewed and re
written by the committee; guidelines
> developed and sent to all Minnesota
banks on suggested procedures on
opening and closing checking accounts,
and guidelines for use by checking ac
count customers.
> In addition, the MBA has urged
banks to eliminate the use of counter
checks and has encouraged use of
v Chex-Systems, Inc., which requires
banks to report all forcibly closed ac
counts to a central master file which
can be checked by the banks before
checking accounts are opened, and co> operation with Research Guidance Bu
reau, Inc., which is a listing of NSF,
v account closed, and stolen checks is
sued weekly. The account information,
is furnished by the banks, and they in
- turn furnish it at a cost to the mer
chants.
Direct Verification
In 1971, MBA began to encourage
direct verification of checks, accord* ing to Mr. Berthiaume. This enables
the merchant to call the bank on which
the check is drawn for verification. The
v method replaced an earlier quarterly
code system published by MBA and
used among banks for check verifica^ tion.
MBA supported a bill during the
A 1971 Minnesota legislative session that
required a photograph on drivers li
censes and also supported a bill in
1973 that would facilitate prosecution

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

. . mightier than the sword!”

by eliminating the defense that a notice
was not received if the certified letter
was refused by the drawer. This bill
also would have protected the banks
from civil or criminal liability for re
leasing information to a public official
relating to the drawer’s account.
The association also continually
publishes protective bulletins on check
passing, stolen checks, and other re
lated criminal activities, he comment
ed. The bulletins are sent to banks,
sheriffs and major police departments.
The checking accounts standards
committee has been working on the de
velopment of a training program for
bankers on the proper procedures to
follow in the opening and maintenance
of checking accounts and a program
for retailers in the procedures to fol
low when cashing checks.
“With Electronic Funds Transfer
System, the direct deposit of payroll
and government checks, already a real
ity, we should begin to see a substan
tial reduction in stolen and forged
checks,” Mr. Berthiaume said. “If the
system proceeds as most bankers vis
ualize, the transfer of funds will be
done completely electronically which
would in effect eliminate the entire
problem of NSF and other types of
problem accounts.”
Other Associations

Other associations have used some
of the same ideas.
Last year, meetings among the
Michigan Bankers Association and the
Food Dealers of Michigan and other
business associations resulted in gen
eral agreement that both banks and
business groups must do a better job
of controlling the bad check situation.
The MBA initiated a program request

ing that banks institute an even more
stringent system of screening new
checking accounts, requiring more
positive proof of identification. It ad
vocated developing a system whereby
banks within a community could more
readily exchange information on closed
accounts and on known bad check
passers and recommended that Michi
gan banks adopt one of several check
protection systems now being ad
vanced.
The Colorado Bankers Association
is using at least one of these ideas. It
has established a Colorado Bank Alert
(radio) for the Denver metropolitan
area. Banks call the association which
then puts out an alert to 35 downtown
commercial banks in a matter of sec
onds.
The program “has worked to the
benefit of commercial banks,” accord
ing to Jerry Scarboro, executive man
ager of the Colorado Bankers Associa
tion. “We haven’t expanded the service
to retailers and don’t intend to,” he
added.
Hot-Lines

A number of banks in the Chicago
area also have tried hot-lines for im
mediate development of information
relative to checks, according to Donald
X. Murray, secretary of the Illinois
Bankers Association’s committee on
bank security. These have enjoyed
varying degrees of success dependent
on the willingness of member banks
to use the service, he commented.
The Illinois Bankers Association
sponsors security training programs
throughout the year. Its teller training
course, a two to three hour program,
BAD CHECK BATTLE . . .

( Turn to page 86, please)
N o r t h w 0s t e r n

B anker. June

1975

By Thomas L. Wright
President
Bankers T ru s t Company
Des M oines, la.

. . . delivered before the recent 1975 National Marketing
Conference in Chicago.
we were to pinpoint the greatest single problem in
I Fbanking
today, 1 sincerely believe it would lie in the

area of communications.
You have probably heard about
the large airline which was losing
money — as some have done in re
cent years — that decided to elimi
nate all negative language in an ef
fort to improve attitudes and per
formance. First, management chose
to do away with the word “problem.”
In its place, everyone was to substi
tute the word “opportunity.”
T. L. WRIGHT
Subsequently, no “problems” ex
isted and everything became an “opportunity.” Attitudes
improved and a much more productive environment pre
vailed. Unfortunately, the profit picture showed no im
provement . . . and one of the line’s middle managers
later stated, “Instead of insurmountable problems, we were
then overcome with insurmountable opportunities!”
Nevertheless, I think most of us agree that a positive
attitude coupled with good communications can go a long
way toward eliminating many of the problems we face
daily.
Flave you ever known of a chief executive officer
• Being questioned by a good customer about features
of a new service he had heard advertised on the radio
. . . but which the CEO knew nothing about?
® Hard pressed to explain to inquiring board members’
satisfaction why the bank’s sales officers were out solicit
ing commercial loans when the loan/deposit ratio was
running at 85% or better? . . . or
• Losing his temper because he was quoted in the local
newspapers as opposed to bringing pollution spreading in
dustry into the community . . . when he just received wide

o r t hFRASER
w e s te rn Banker, June
DigitizedN for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1975

news coverage upon returning from the northeast on a trip
arranged to attract heavy industry into the area?
On the other hand, have you ever heard of a marketing
director
® Having to cancel a TV commercial because the “
chairman didn’t like it . . . and indeed knew nothing about ^
the spot until one of his cronies kidded him about it on the
golf course?
*
• Reading his news story revealing several key promo
tions in top management . . . only to discover the next day
that they had been vetoed because of a last minute hassle
among members of the board? . . . or
• Being forced to scrap hundreds of hours and thou- <
sands of dollars in research on a new service . . . when it
was discovered that the president had a closed mind on the
subject?
I am sure we could continue at great length reciting bet
ter illustrations than these. The obvious point I am making
is that no bank can afford a communications breakdown ^
between its CEO and marketing personnel. Marketing ef-

Qualities desired in CEO
1.
2.
3.
4.
5.
6.

People Orientation
Planning Capability
Decision-Making Ability
Delegation of Responsibilities
Comprehension of Dynamic Nature of Marketing
Innovative-Minded.

forts are too visible and too vital to permit this sort of in
eptness.
Well, how do we prevent such problems from occurring?
There are a number of ways.
First, I think the marketing director and chief executive^
officer have to know each other. They don’t necessarily
have to like each other, but they must enjoy each other’s
respect! And, it helps if they appreciate many of the same >
values and goals.
Prior to our session today, Ron Roderique suggested A
that Ken Dew (who manages our marketing program) and^
I list in order of importance six qualities we expect of each
other. His real purpose was to compare these six items to

he Partnership

determine which preferences would be duplicated . . . and
how these would compare in order of priority.
I am not sure the correlation between the lists met
Ron’s expectations, but I believe the exercise was well
worth the time. At any rate, I feel Ken and I both bene
fited from the experience . . . and I am going to keep my
list in sight when salary reviews roll around this year!
Let’s take a look at the six qualities desired in the mar
keting director by the chief executive officer. Before we
do, I want to re-emphasize that these are not necessarily
ranked in order of importance. Possibly, all should be
number one . . . but here they are for you to arrange in the
order you wish:
Knowledgeable — The marketing director should hold
a good fundamental grasp of overall bank operations.
These range from loans to night depository facilities. He
needs to be a generalist in terms of the bank and a special
ist in his chosen field of marketing.
Planner, Researcher, Analyst — He must have organi
zation and planning ability; be able to pull data together

Qualities desired in Marketing Director
1.
2.
3.
4.
5.
6.

Knowledgeable
Planner, Researcher, Analyst
Imaginative, Creative, Innovative
Persuasive, Communicative
Aggressive, Self-Starter
Dependable, Personable, Realistic

and develop marketing strategy to support broad corporate
goals.
Imaginative, Creative, Innovative — The marketing di
rector should be able to break through traditional think
ing habits and behavior patterns to gain creative insight
to the needs of his bank as well as the wants of his bank’s
customers.
Persuasive, Communicative — He must have skills re
quired for explaining clearly his views to management, as
sociates and the various customer publics.
Aggressive, Self-Starter — A good marketing man must
be aggressive. Initiative is of the utmost importance. He
stands on the cutting edge of change . . . and can’t be hesi

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

tant or reluctant to accept the inevitable. He is part ideal
ist, part pragmatist.
Dependable, Personable, Realistic — The marketing
director has to be reliable. His business is meeting dead
lines . . . and only he can manage this schedule. An affa
ble, outgoing nature represents a helpful ingredient for
dealing with the wide range of people and personalities he
meets.
With these basic qualities, I think a marketing man is
equipped in large part for communicating with his chief
executive officer. That is not to say they guarantee a clear
communications channel. I do think they provide the foun
dation, however. How well they support the CEO-Marketing Director communications effort depends to a great ex
tent upon how well both parties function in a give-andtake exchange of ideas and information.
Let’s take a look at those qualities the marketing direc
tor desires in the chief executive officer. Most of them are
pretty reasonable!
People Orientation — The CEO must possess a keen
sensitivity to the needs of his associates and customers.
Probably his success is influenced more through the abil
ity to get things done through others than any other force.
Planning Capability — I think this is the only quality
that fell into comparable positions on our lists, You may
recall, I had rated as second on my list that the marketing
director be a planner, researcher, analyst. Very true on
both counts.
Decision-Making Ability — The marketing director
feels that the CEO should discipline himself and his staff
to make decisions based on available data. Minimize pro
crastination, decide whether it’s a go or no-go situation
. . . and move!
Delegation of Responsibilities — Marketing personnel
favor the CEO who develops a framework of responsibil
ity and authority for his managers and then lets them man
age. I realize this seems awfully fundamental, but it repre
sents an area which can be highly frustrating . . . especial
ly when marketing requires quick response to competition.
1 agree with this view.
Comprehension of Dynamic Nature of Marketing —
MANAGEMENT MARKETING 7 7 .
( Turn to page 116, please)
N o rth w e ste rn

Banker, June

1973

Home Improvement Loans
Profit Opportunity for the Retail Bank

. . . delivered before the Minnesota
Bankers Association Instalment Credit
Conference.
VT' OU as retail bankers —• as consumer lenders —• have a tremen
dous opportunity in the current eco
nomic climate and the current market
ing climate. Instalment credit, as a
bank investment, has taken a back seat
to commercial lending for the past
couple of years, but during 1975, you
are once again in a position to make
heroes of yourselves.
Senior bank management faces a
very real problem this year. That
problem in a nutshell is, “Where is
income growth going to come from in
1975?” And you, in the consumer
lending area, are the solution to that
problem.
The prime rate has dropped more
than 40% over the past eight months.
So income growth is not going to come
from the commercial loan department.
Nor is income growth likely to come
from the mortgage loan department.
Not with the current unfavorable
housing picture and the illiquidity in
herent in loans of this type.
So where does that leave the growth
opportunity? Right here in the con
sumer lending area. You will be play
ing a vital role in bank profit planning
strategy for 1975. Senior management
is counting on you to make a greater
contribution to overall growth this
year and throughout the 1970s.
The retail sector will grow signifi
cantly as a source of deposits, earn
ings, and growth for the commercial
banking industry. And retail loans are
becoming top management priorities.
Senior management now recognizes
N o r fh w e s fe r n

B anker, June

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

1975

the validity of the Booz, Allen &
Hamilton study of commercial bank
ing made two years ago, which con
cluded that the foundation for the
future success of banking is the retail
concept. And senior management
recognizes the need to switch emphasis
from the wholesale to the retail in
order to maintain a healthy growth
rate for banking in the years ahead.
Aggressive Operation
How can you capitalize on this
change in direction? Well, one way —
a sure way and a profitable way — is
to develop an aggressive property im
provement lending operation. Home
improvement loans are the key to in
stalment portfolio profits in today’s
retail banking climate. And no other
type of loan can be developed as easily

By WILLIAM F. SCHUMANN
President
insured C redit Services, Inc.
Chicago, III.

and as profitably as the modernization
loan.
Just two weeks ago, Associated
Press News Features estimated that
the home improvement industry would
have 1975 sales exceeding $35 billion.
And even the most conservative industry estimates project a minimum
sales volume in the $28 to $30 billion
range. So for the first time, home im
provement loan potential is actually
greater than that of either new auto
mobiles or mobile homes.
Think about the market potential
for property improvement loans.
Nearly 36% of all houses in the
United States were built during or
prior to World War II. And 82% of
all housing is more than 10 years old.
So the business is there. It’s just a
matter of focusing your efforts on
getting it.
Even the most conservative esti
mates place one home in five as being
in need of major improvement. And
when I say in need, I’m talking only
about necessary improvements — improvements such as new heating plants,
rewiring, plumbing work or added
living space to remedy overcrowed
conditions. If you include the so-called
luxury improvements such as patios,
recreation rooms and swimming pools,
the market potential is truly stagger
ing.

*
-4

'
,

‘
-

Advantages
In addition to greater market op
portunity, there are a number of other
reasons why expansion of your home
improvement lending operation is an
ideal method to accomplish your ob
jective of making a stronger contribu- v
tion to the growth of your bank. Con-

The big tune-in o f 1975
The First National City Travelers Checks

H e r e is th e o v e r w h e lm in g lin e u p o f TV p r o g r a m s th a t w ill h e lp tu rn y o u r c u s t o m e r s
o n —to F ir st N a tio n a l C ity T r a v e le r s C h e c k s . O n a ll t h r e e m a jo r n e tw o r k s : C B S ,
N B C a n d A B C , F irst N a tio n a l C ity T r a v e le r s C h e c k s is c o m m a n d in g th e tr a v e lo r ie n t e d s p o r t s v ie w e r s a t t e n t io n —r e a c h in g o v e r 4 0 0 m illio n v ie w e r s .
H e r e is a m in i-g u id e to t h is s p e c t a c u la r s e r i e s o f p r o g r a m s :
S 3 NBA Playoff G am es
© W orld C h am p io n sh ip Tennis
(© S tanley C up H ockey
GIB W ide W orld of S p o rts
(S3 The P reakness
© INDY 500 Tim e Trials
© The INDY 500
(S3 NBA C h am p io n sh ip
© M em phis O pen G olf

(S3 The B elm ont S ta k e s
© U.S. O pen G olf
© C o ach es All-American Football
(S3 W im bledon Tennis
© N ational G olf Driving C ham p io n sh ip
© B ritish O pen G olf
© A ll-Star B aseball G am e
© C ollege A ll-Star Football
© PGA G olf T ournam ent

F irst N a tio n a l C ity T r a v e le r s C h e c k s is a s p o n s o r o f t h e m o s t
im p o r ta n t n a t io n a l a n d in t e r n a t io n a l a u t o r a c in g e v e n t s .

Plus:
A m a g a z in e s c h e d u l e th a t w ill b r in g t h e F irst N a tio n a l C ity T r a v e le r s C h e c k s s a l e s
s to r y t o o v e r 6 0 0 m illio n p o t e n t ia l tr a v e le r s c h e c k c u s t o m e r s .
R ead er’s D igest
N atio nal G eographic
N ew sw eek
E squire
Travel
Ebony

Tim e
C o sm o p o litan
M odern Bride
E ssence
Playboy
Money
S o u th ern Living

G olf D igest
U.S. News & World R eport
S p o rts Illu strate d
People
B usiness W eek
H oliday

Don’t be left out of the big tune-in o f1975. Stock
up on First National City Travelers
Checks now. These great sports
show s and these magazines will
send the custom ers in. Be ready
to sell them when they arrive!
F irst...sell First National City Travelers Checks.

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Federal Reserve Bank of St. Louis

N o rth w e ste rn

B anker, June

1975

32
sider the advantages of increased
participation in home improvement
lending.
The very fact that modernization
loan borrowers are homeowners fits
them exactly into the consumer mold
toward which your entire marketing
strategy is directed. Cross-selling all
services of the bank is the nearly uni
versal objective of bank, marketing to
day. And when you help an individual
in the financing of his home improve
ment, you are provided with a perfect
opportunity for cross-selling activity.

. . property improvement
borrowers are a strong
investment in future
business for your bank.’1
Which consumer classification needs
and uses all of the bank’s services? It’s
the homeowner. The homeowner
needs a checking account and a sav
ings account, and the homeowner is
the safe deposit box user and the
potential trust customer. The homeowner will also have other borrowing
needs in the years ahead. A home im
provement loan is a prime method to
introduce this consumer to your bank,
and making such a loan paves the way
for you to lock him in to all the ser
vices you have available.
Studies have shown that the home
improvement loan borrower offers
greater potential for multiple usage of
bank services than any other type of
instalment borrower. And customer
loyalty is directly proportional to the
number of bank services used.
Customer Loyalty
For example, if an individual has
just a loan with your bank today, your
chances of retaining him as a customer
are less than 50-50. However, if in
addition to the loan, he also has a
checking account, the odds jump
strongly in your favor.
And if he has a loan, a checking ac
count, and a savings account, chances
are better than 20 to 1 in your favor
that you will have him. as a customer
five years from now. So in addition to
providing current earnings to your
instalment loan department, property
improvement borrowers are a strong
investment in future business for your
bank.
Still another incentive for you to
become more active in modernization
lending is one of the very basic purN o rfor
t h wFRASER
e s te rn B anker, Jene
Digitized
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Federal Reserve Bank of St. Louis

1975

poses that motivates your bank —
community service. There is no area
where a bank can make a more con
structive contribution to community
advancement than to promote an
active program of financing for the
maintenance and improvement of
property.
Better housing and better living are
synonymous and the bank that pro
motes this theme is certain to earn
the good will of the community it
serves. The success of your bank is
measured by the extend you fulfill the
day to day needs of the public — the
worker, the farmer and the business
man.
riming is Right
The timing is absolutely perfect for
greater emphasis on home improve
ment lending. The baby boom of post
World War II has just come of age,
and most of the people have been in
their first home for two or three years.
They are interested in improving the
livability of their surroundings, but
because of the current mortgage
money crunch, they are unable to
move into larger quarters. As a result,
they are expanding their present
homes and they are making the
changes in their home necessary to add
to individual comforts.
These people are putting in the wall
to wall carpeting, and the patio and
the recreation room that they might
not previously have thought about,
because they expect to stay where they
are the next five to 10 years rather
than going to a larger home. You, as
bankers, can help these people in the
financing of their improvements, while
at the same time cross-selling them on
other services available at your institu
tion.
Probably the most important reason
for active participation in property im
provement lending is the fact that
these loans will make a strong con
tribution to bank earnings.
Compare the earnings on these
loans to earnings on other types of
consumer loans. The set-up cost on a
home improvement, loan is about the
same as other loans, and the cost of
handling the loan, once it’s on your
books, is not much different. But the
home improvement loan produces sub
stantially more income for the bank.
Why Home Improvement?
So why look to your home improve
ment lending operation to fulfill the
growth objective of your senior man-

agement? Well, first because there is
a vast ready market today, greater than
for other types of instalment loans,
and the need for improvements is
tremendous. Second, because home
improvement borrowers are your tar
get customers for cross-selling other
bank services. Third, home improve
ment loans make a substantial con
tribution to the improvement; of your
community. Fourth, these loans pro
vide an attractive alternative to auto
and mobile home loan concentration,
enhancing stability of the bank’s in
stalment loan portfolio. And finally,
property improvement loans are strong
income producers for the bank.
Cross-selling potential, public ser
vice opportunity, timing, diversifica
tion and profit. AH of these reasons
make the home improvement loan the
ideal instalment portfolio for you to
develop in the lending climate that
prevails today.
Thus far, 1 have talked only about
the positive side of property improve
ment lending, but it would be naive to
say that this type of lending doesn’t
also have its share of the problems.
So let’s take a look at the other side
for a few minutes.
Problems
Probably the greatest problem faced
by home improvement lenders today
is compliance with the Flood Disaster
Protection Act. As of July 1, strict en
forcement of the act will be maintained
by regulatory agencies. And for those

. . the ideal instalment
portfolio for you to develop
in the lending climate
that prevails today.”
of you who are presently operating
under the FHA Title I program, it
means that every improved property
location must be checked to determine
whether or not it lies in what is de
signated as a flood prone area. If the
property is in a flood prone area, the
bank must ascertain that flood in
surance is in effect. This applies to
every FHA loan — secured or un
secured. And on both direct loans and
third party paper.
While the problem is much less
severe for lenders using a private in
surance plan such as that offered by
Insured Credit Services, or for lenders
operating on an uninsured basis, the
problem still pertains to direct, secured

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Federal Reserve Bank of St. Louis

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35
loans in these cases. Nevertheless, a
good many of you are using the gov
ernment plan, and as such, the required
compliance could have a substantial
effect on overall operating costs.
Another problem that lenders face
with increasing intensity is what is
commonly referred to as consumer
oriented legislation. Consumer groups
have sponsored and, in some cases,
have succeeded in obtaining the en
actment of legislation guaranteeing an
allowable period of delinquency after
default where lenders are unable to
exercise their rights of acceleration,
repossession or foreclosure until a
specific past due period has expired.
Consumer groups are forcing cred
itors to make much greater use of the
courts to obtain their collateral in cases
of default and a number of states have
already eliminated, or radically modi
fied, the holder-in-due-course concept.
Bankruptcy
The proposed revision of the Bank
ruptcy Act is another example of mis
guided consumerist legislation, in my
opinion. This legislation provides that
a borrower, after filing bankruptcy,
will be able to reclaim collateral secur
ing the loan — not for the balance
due — but for the fair market value
of the collateral, and the creditor will
have no choice but to return the col
lateral to the bankrupt debtor.

. . consumerist idealism
doesn’t solve the problem. Ulti
mately, the huge majority of
debtors who do pay, wind up
being penalized by the small mi
nority who don’t.”

In addition, under the proposed
change in the Bankruptcy Act, it will
even be illegal to refuse to grant credit
for the sole reason that the applicant
has filed bankruptcy. Further, bank
ruptcy costs will drop from their pre
sent level of $300 to $400 down to
$150, which will undoubtedly accele
rate filings.
Just two weeks ago, the Federal
Trade Commission proposed sweeping
changes in collection practices and
while the FTC’s jurisdiction does not
cover banks, the Federal Reserve
Board, which does have jurisdiction,
is required by law to match FTC credit

regulations for the banking industry,
or explain why such regulations would
not be necessary. This proposed FTC
regulation is now under study by the
Federal Reserve Board, and it could
trigger similar requirements for banks
in the immediate future.
Among other provisions, the new
FTC rule, if adopted, would prohibit
late charges, attorney fees and other
costs on borrowers, except where such
fees are applied with extremely tight
restrictions. The FTC rule would also
prohibit lenders from using a bor
rower’s employer, or for that matter,
even the borrower’s spouse, as a lever
to help collect a debt.

. . greatest single weakness
today is collections . . . in prop
erty improvement field the
weakness becomes even more
acute.”
comprehensive picture of develop
ments in our end of the consumer
lending picture, and I would like to
review with you a few of the trends
in the home improvement field that
we have found during the past few
months.

Trends
Help for Borrowers?
If I were asked to name the greatest
J.
Thomas Rosch, head of the FTC’ssingle weakness in the consumer lend
Consumer Protection Bureau, in ex ing picture today, I wouldn’t hesitate
plaining the rationale behind the pro to point my finger at the collection
posed rule, said borrowers often don’t area. And in the property improve
know they have rights when they enter ment field, the weakness becomes even
a credit agreement, and sign away more acute. An improvement loan is
goods as security on a loan when it is not generally one that can be collected
unnecessary.
by repossession, so the approach must
“Loss of personal possessions can necessarily be one of selling the bor
severely affect the debtor’s state of rower on how payment can be made
mind,” Mr. Rosch told a press con in spite of his current financial condi
ference. He said, “Surveys show that tion. And with the prevailing economy,
most loan delinquencies are caused by a real professional is required to do
illness, unemployment and unwise this selling job, in many cases.
financial management — not unwill
Yet time and time again, banks
ingness to pay,” intimating, I assume, continue to use the collection depart
that the lender should bear the con ment, one of the most vital operations
sequences of a debtor’s ill health or in the bank, as little more than a
his money mismanagement.
training ground. Far too often, we see
This type of attitude is not uncom an adjuster as a man with no ex
mon today among the so-called con perience, completely uninformed as to
sumer advocates. But what these collection techniques, with practically
people fail to realize is that in the no training and very little knowledge
long run, they are hurting the very of recessions, unemployment or mari
people they are trying to protect. tal problems, and the effect these
Lenders can live with the rash of new things have on loan repayments. He is
legislation, but it will raise operating simply handed a portfolio of delin
costs. And when lender’s costs are quent accounts and told to go out and
raised, the price of borrowing goes up. collect the money.
This consumerist idealism doesn’t
This trend results in a very real pro
solve the problem. It simply adds to fit leakage. And, an adjustment in
the rate the public pays for the exten priorities is necessary. You work hard
sion of credit. And, ultimately, the to make a profit, and you must work
huge majority of debtors who do pay even harder to keep it.
their bills wind up being penalized by
Now is the time to re-examine col
the small minority of debtors who lection procedures. Screen collection
don’t. It’s the little guy, the man on personnel and give the collection de
the street, who takes care of his oblig partment the recognition it well de
ations, that foots the bill.
serves, and undeniably will be earning
Our organization has insured more in the months ahead.
than $1 billion in home improvement
Claims Survey
loans, and in so doing, we have seen
Just last week, we conducted a sur
literally hundreds of different lending
operations all over the country — vey of all of the claims we had paid
during the first quarter of 1975 to
both good and bad.
Through our field visits, we get a determine the primary reasons for deN o rth w e s te rn

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

Banker, June

1975

. . visit the dealer’s place of business . . . look at completed
jobs . . . talk to borrowers to determine their satisfaction with
the dealer.”
fault. This survey showed that 61%
of the defaults resulted in either over
obligation or unemployment, both
reasons being products of our current
economic situation.
Undoubtedly,
some of these losses could have been
avoided with experienced, well trained
adjusters.
The economic situation is not going
to be reversed overnight. It is going
to be with us for quite some time.
While the economic prognosticators
are now saying that we’re now out of
a double digit inflation period, there
has been a net loss of 6.5% of dispos
able income for the average worker,
during the past 18 months.
Your borrower’s margin between
income and outgo has literally been
eaten up with skyrocketing prices. And
with a continuation of this trend, it
boils down to the fact that, in many
cases, one and perhaps two of the
12 loan payments due you in 1975
won’t be made, unless you have topnotch people working in the collection
area.
More and more, banks are recogniz
ing the need to get back to the basics.
And the basics in collections narrow
down to three areas. Determine the
problem, arrive at a solution, and
follow up all previous arrangements
immediately.
Our claims survey also developed
some interesting statistics with regard
to the number of payments made prior
to default. In 37% of all loans, regard
less of term, we found that there had
been no more than six payments made
before defaulting. And one-third of
these early payment defaults never even
left the post. I’m sure you would all
agree that at least some of these loans
had red flags waving at the time they
were initially approved, and that a
close analysis of the information at
hand probably would have eliminated
a good portion of these losses.
Credit Characteristics
iDuring our analysis of 1975 claims,
we noted three particular credit char
acteristics common to a large portion
of our losses, and it may be in order
to mention them briefly for your con
sideration.
N o rth w e ste rn

Banker, June

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

1975

1. The analysis of income and out
go by the credit officer had been
superficial. The crux of a good credit
decision in an in-depth determination
of the borrowers capacity to repay.
Far too frequently, we see considera
tion given only to fixed monthly obli
gations with no knowledge of the size
of the family, and no recognition of
month-to-month living expenses such
as automobile maintenance, utility bills
and groceries.
2. There was a lack of reasonable
background information on the bor
rower. The bank had not taken the
time to determine past credit history.
In today’s situation, particularly, it is
imperative to obtain an up-to-date
picture of income and indebtedness.
The improved property was located
in a questionable area, or out of the
bank’s general trade area where there
was no familiarity with land values or
neighborhood conditions.
All three characteristics boil down
to nothing more than “know your
borrower.” Get a complete picture of
his financial condition, conduct a
thorough investigation and then make
a professional analysis of the facts at
hand. Information, followed by in
vestigation, followed by analysis, will
eliminate 90% of your problems.
In the indirect home improvement
lending field, we see a new trend. As
a result of the current profit squeeze,
more and more banks are looking at
expansion in the indirect property im
provement loan field, and this area can
be one of the highest yielding opera
tions in an instalment loan portfolio.
But to assure a continuing profitable
relationship with dealers in the home
improvement field, we suggest certain
steps be taken.
Steps To Take
First, make absolutely certain that
the dealer is financially stable and able
to install and service the job that you
will be financing. Obtain a current
financial statement as well as a Dun &
Bradstreet report and up-to-date
credit report on the principals. Then
make certain that all of this material
is updated on a regular basis.

Second, analyze losses and delin
quencies on a dealer by dealer basis.
If the portfolio of a particular dealer
is out of line, pinpoint the cause and
either impose limitations or revise your
standards on the dealer’s offerings.
Third, analyze rejects. A rejected
loan produces absolutely no income
for the bank and creates a substantial
investigation expense. A high reject ra
tio could mean a relationship with the
dealer that has no profit in it whatso
ever.
Fourth, review all complaints com
pletely. If they relate to workmanship,
doublecheck the product and installa
tion. If they involve sales practices,
this could be a real danger signal, and
it calls for immediate corrective action.
Finally, visit the dealer’s place of
business on a regular basis. Evaluate
his showroom and his shop. Meet his
salesmen and his mechanics, and get
all sales literature and information
available concerning his product and
sales technique. Look at completed
jobs periodically, and talk to the bor
rowers to determine their satisfaction
with the dealer.
Indirect Loans
Indirect loans can be a highly pro
fitable source of home improvement
business. But it does take a commit
ment to stay on top of an operation if
success is expected.
In conclusion, let me summarize by
saying that the favorable factors in
home improvement lending far outweight the unfavorable ones. Develop
ment of the property improvement loan
is an ideal marketing approach to ac
complish your two-fold objective of
bringing the consumer into the bank
and generating income growth in your
department. The potential of the home
improvement loan field is enormous.
The profitability is unparalleled, the
diversification is needed, and the tim
ing is perfect.
Your success in the modernization
loan field is limited only by your
determination to go after business.
With a strong property improvement
financing program, the individual pro
fits, the community profits, business
profits, and your bank profits. -— End

How To Attain
Financial Happiness

HE REAL CLIENTS of bankers, lawyers and CPAs
T
are people, not organizations. And almost all of these
people suffer from financial anxiety at some time. Most
suffer needlessly. Many could be financially happy most
of the time.
Financially frustrated people frequently turn to bankers
for advice and help. These people know that bankers can
speak their language, know their problems, be convenient
ly available and at the same time be financially knowledge
able. In turn, it is exceedingly important for bankers to
realize that many people do business with them to lessen
their financial frustrations and to increase their financial
happiness. These same people make deposits so they can
transfer funds to others, earn interest income and have
money for a rainy day. They borrow money to finance in
ventories, to buy cars and to pay taxes. But these are not
the basic reasons they seek advice and help from a banker.
These people seek financial happiness!
The purpose of this article is to help you as bankers to
better understand financial happiness so you can better ad
vise your clients how it can be attained. These suggestions
are not about how to get rich. They are infinitely more use
ful. This article is about how to help people escape finan
cial frustration, how to be financially happy.
To begin with, there is no magical dollar amount of
wealth that will ease or erase financial frustration. People
cannot earn their way to freedom from financial frustra
tion by getting richer. For the average person, freedom is
probably easier to attain than riches. For the rich, it is
more difficult.
Freedom from financial frustration, admittedly, is not
the ultimate in life. Health — physical, spiritual and men
tal — is far more important. So is love and understanding
of and for one’s family. Friendships are more important.
In fact, there are a number of things that most of us con
sider to be more important than financial matters. Virtual
ly all of these more fundamental things can be done or can
be enjoyed more fully when financial frustrations and
anxieties have been minimized.
How can people gain financial happiness? The process
can be divided into six steps.

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Federal Reserve Bank of St. Louis

Q p

SET FINANCIAL OBJECTIVES
The obvious first step to a satisfying financial life
J r ^ k _ is to establish financial objectives. Not many use
ful things in life occur except as the result of
striving to achieve an objective. We seldom achieve any
thing worthwhile by chance. And we seldom achieve satis
faction by accomplishing something that we did not set out
to do. The feeling of satisfaction is the result of the
achievement of an objective. How then can we feel satis
faction, how then can we know we have achieved, unless
the object we want to achieve has been established and
defined?
Objectives are best when they have been reduced to
writing because they are better reasoned, more specific and
more concrete. Most people probably write, then rewrite
objectives several times before arriving at an adequate
definition. If the objective is a family one, as most finan
cial objectives tend to be, the spouse should participate.
Most people find it difficult to define personal objec
tives. Financial objectives can and should be quantified,
but usually only after a considerable amount of non-quantitative thought.
A typical first definition, for example, might be to pro
vide a “good life” for the family. How can this be quanti
fied? On further consideration, it may mean:
a. To pay off all debts — that is quantifiable.
b. To provide a college education for the children —
that is estimatable.
c. To provide a degree of financial security for the
spouse in the event of the premature death of the
partner. Again, a reasonable estimate can be made
and there is an entire industry waiting for the oppor
tunity to provide the means to accomplish this objec
tive.
d. To accumulate enough wealth to avoid serious finan
cial worry at retirement. Again, reasonable estimates
can be made although they become more difficult if
retirement is some distance in the future.
e. To leave each child a reasonable bequest at death.
As an illustration, a set of objectives might be:
N o rth w e s te rn

B anker, June

1975

38
a. To insure that my family would have an annual in
come o f ------ dollars if I died today.
b. To provide four years of college for each of my chil
dren.
c. To have accumulated at lea st------ dollars in capital
by age 65.
d. . . . and so forth.
Objectives are what a person wants to attain. And al
though financial ones are elusive, they are quantifiable.
They also seem to be hierarchical in nature. Most of us
seem to be concerned only with defining and achieving the
next one. We have already forgotten the one just attained.
For some reason, we tend to give only passing thought to
those objectives we intend to accomplish in the distant fu
ture. But defining objectives is the most necessary of all
the steps required to achieve financial happiness,
r v T PREPARE A PLAN
) Step two is the preparation of a plan to attain the
objectives. Like with objectives, a written plan
is more useful than an unwritten one. Among the
benefits, plans help people evaluate and, when needed, re
vise their objectives so they become and remain realistic.
Planning starts by drawing a statement of strategies.
Most statements will start by calling for some form of sav
ings from current income that can be invested. For exam
ple, the plan may be to save------ dollars from current in
come each year. Next, an investment strategy will be need
ed. These will vary widely among different people and
should basically reflect their ability to accept risk. Some
people utilize life insurance almost exclusively to create
an estate. Others carry almost no life insurance. One per
son T know carries a fantastic amount of insurance so he
can consume everything that is left over after payment of
premiums. For him, it is a great strategy — he feels it is
the only way to achieve his desired objective. Entrepre
neurs will typically find such a strategy unacceptable. They
will usually set higher goals whose achievements will re
quire greater risk taking strategies. Achieving financial
happiness is an individual thing. Objectives and strategies
should both be adapted to the individual characteristics
of the client.
Many people need help to save funds from current in
come — and this includes a surprising large number of
high income people. The savers and the spenders in house
holds often need to commit to a savings plan. Such a plan
whether viewed by the client, his banker or accountant,
is a budget. It can be one of the most critical ingredients
in strategies to achieve financial happiness.
Q e

MEASURE PROGRESS
Step three to happiness is to measure progress.
4 r^k _ As strategies are carried out and wealth starts to
accumulate, it is important to periodically mea
sure progress against objectives. Progress can be measured
by two personal financial statements: a statement of assets
and liabilities and a statement of changes in net assets. A
number of people prepare them or have them prepared an
nually in conjunction with their personal income tax re
turns.
Personal financial statements can be prepared on either
a cost or a present value basis or both. The present value
information is usually most useful. However, it is impor
tant to recognize that the appreciated value of the assets
N o rfor
t h wFRASER
e s te rn B anker, June
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1975

By IVAN BULL
M anaging P artner
M cGladrey, Hansen, Dunn &
Com pany
C ertified Public A ccountants
D avenport, la.

3 THE AUTHOR— Mr. Bull was born in 1924 on an Iowa
farm . He served in the Infantry in W o rld W a r II. Upon gradu
ation from the University o f Iowa in 1947 he earned a B.S.
degree with highest distinction. In June o f that year he
joined M cG ladrey, Hansen, Dunn & Company, won the Sells
Silver Medal when he passed the CPA exam in May, 1948,
was prom oted to partner in 1951, became an adm inistrative
partner in 1960, and m anaging partner in 1966.
Mr. Bull is a member o f the Illinois Society o f Certified
Public Accountants, the Iowa Society o f CPAs and the Am eri
can Institute o f CPAs. He is currently vice chairman o f the
AICPA, a member o f its board o f directors and Council, and
is scheduled to be advanced to the chairmanship o f the
American Society at the annual meeting this fa ll. He has
been a trustee o f the Financial Accounting Foundation since
its inception. Mr. Bull has held a number o f responsible posi
tions with the AICPA. He also served previously as chairman
o f Associated Accounting Firms International (consisting o f
14 regional United States CPA firms, plus accounting firms in
Canada, M exico, England, Australia, New Zealand and
South A frica).
Mr. Bull is the author o f “ The Process o f Planning” and
has written numerous professional accounting articles, as
well as addressing many business organizations on financial
planning.

over their cost is subject to an income tax when sold.
Therefore, this future income tax on the increased value
of assets, usually capital gains, should be reflected on pres
ent value statements. Of course, if an appreciated asset is
held until death, the capital gain tax on the appreciation
is avoided. Death taxes are payable by many estates, but
are not reflected on financial statements for living people.
The statement of changes in net assets reflects income
earned and increases or decreases in the market value of
investments. In addition, it includes income tax costs and
the cost which most of us find hard to control, living ex
penses.
It is human nature to want to measure progress. We
watch the road map and check the mileage when we drive.
A similar process for financial matters is normal. Measure
ments cause us to re-evaluate our objectives and to recon
sider strategies we have chosen. Measurements are a great
aid. In fact, they are downright essential for people who
are trying to reduce financial frustration.
MINIMIZE TAX PAYMENTS
Step four is to minimize tax payments: a specific
strategy which almost no one can afford to ignore.
Just the act of paying taxes is frustrating to most

Here’s why a CMI
Letter Perfect Loan
pays off first
in these secondaries
You w o n’t profit from mistakes in the government secon
dary market. And it w o n’t pay you to pay more than needed
for mortgage insurance protection either. That’s why we've
created Letter Perfect Protection.
Quite frankly, it’s a program that's been refined and pol
ished beyond those ’’scatter-shot’’ approaches of other
mortgage insurers. In our lender’s guide, which is yours
free for the asking, each step and form is explained in un
tangled terms by our secondary market men w h o’ve been
in daily contact with FNMA, GNMA and FHLMC since the
programs began.
Our com puter loan check for FHLMC is on-line now,
ready to help you fast-match mortgages to all require
ments and signal any errors before you submit.
Another free service.
Of c o u rs e o u r cove rag es are Federated to
match the minimums required by each agency,
and our premiums are L ib e rated to correspond
with these reduced coverages.
Conversion privileges, new, simple, one sheet
applications, even reduced standard coverages
on ratios under 80%, it’s all here and it’s Letter
Perfect.
There’s money to be made,
make no mistake. Our Letter
Perfect Protection kit is free.
Call for it now. (Toll Free)
800-356-8080. (In W isconsin)
800-362-8070. It’s the sure
way to have your mortgages
pay off first with
the secondaries.

^
l j

The
Mortgage
Insurance
People

Continental M ortgage Insurance Inc., Commercial Mortgage Insurance Inc., CMI Credit Insurance Inc.,
are subsidiary companies of CMI Investment Corp. 150 East Gilman Street, Madison, Wisconsin 53701

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

N o rth w e ste rn

B anker, June

1975

40
people, so taking advantage of available opportunities to
minimize taxes is logical. An alert taxpayer working with
a competent tax advisor can minimize tax costs by perfect
ly legal methods.
Tax laws are so intricate and complicated that only a
few people can competently prepare their own income tax
returns and even fewer can represent themselves when
their returns are examined by Internal Revenue Service.
Many people fail to realize that before completing major
financial actions, they should consult their tax advisors.
'The difference in tax cost between two different kinds of
transactions, but which accomplish the same approximate
purpose, can occasionally be substantial. For example, or
dinary income sometimes can be legitimately converted in
to a capital gain. Some transactions, on occasion, can be
accomplished tax free in one form but not in another. The
savings in tax cost can be considerable.
Perhaps even more important for a person seeking relief
from financial frustration and worry is the opportunity to
shift the burden of compliance to a professional tax ad
visor. Given the facts, the advisor assumes the responsibil
ity for proper presentation and representation before In
ternal Revenue Service. A competent professional knows
when there is no need for worry — and this state of con
fidence can be passed on to the client.
Q

plan b ey o n d d ea th

$ ' Step five is to make financial plans that extend
beyond the person’s life time. This suggestion
towards living a more satisfying life, strangely
enough, relates to dying. Dying is one of the certainties of
living. It is almost as certain, however, that a majority of
people live the majority of their lives as if they expected
to live forever.
Before most people can achieve financial happiness,
they need to feel that they have controlled the distribution
of their accumulated wealth at their demise. They need to
be satisfied that the plan for distribution among their heirs
is equitable and that death taxes will be minimized while
not impinging on the more important objectives of an
equitable distribution. An estate plan, directed by an upto-date will, is the best assurance that assets will be used
as intended and not diluted by unnecessary death taxes.
This final degree of financial satisfaction is absolutely de
pendent upon an estate plan. A plan for after death pro
duces an astonishingly large amount of living satisfaction!
An unbelievable amount!
GET PROFESSIONAL HELP
Step six is necessary because the first five cannot
be accomplished without it. Persons seeking fi
nancial happiness need professional help.
Bankers, lawyers, CPA’s, life underwriters and investment
counselors can each play an important part in helping per
sons achieve financial happiness. The client often will not
start without a nudge from someone. It does not really
matter which professional is consulted first, so long as he
provides the spark to start.
Each professional should play only a supporting ad
visory role in helping clients establish objectives. Satisfac
tion is achieved by people who accomplish the objectives
they set rather than those set by others. The competent
professional will guard against playing anything but an ad
vising role in the objective setting process.
N o for
r t h wFRASER
e s te rn B a nker, June
Digitized
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Federal Reserve Bank of St. Louis

1975

The professional’s role in helping a client develop plans
and strategies to achieve objectives is also primarily ad
visory. He helps generate alternatives for the client’s con
sideration. The nature and importance of this task depends
on the client’s knowledge and circumstances.
Financial measurement reports will normally require
professional assistance. Accountants feel most at home in
measuring progress. However, in some situations other
professionals, such as bankers and lawyers, may provide
some measurement assistance. And on occasion, the cli
ents may be perfectly able to prepare these financial mea
surements.
To minimize tax payments in these days of complex
laws and regulations, professional tax assistance is abso
lutely essential. Most CPAs and most lawyers are compe
tent. Those specializing in taxes, however, are recommend
ed for the more complex tax problems and opportunities.
In estate planning, the client should again take the lead
role in developing the objectives and the professional only
a secondary role. "This is essential because the estate plan
must reflect the client’s true objectives. In turn, the obliga
tion of the professional planner is to provide the strategy
to distribute the estate according to the wishes of the cli
ent. Planning can be done by a trust officer, a life under
writer, an attorney, a CPA, or all or part of them as a
group. However, an attorney must draft the will, trust in
struments, and other legal documents which are needed
to carry out the plan. While others can review and suggest,
the final responsibility for these documents is necessarily
those of the attorney.
SUMMARY
In summary, the route to helping clients achieve finan
cial happiness will normally include getting them started
and advising and helping them to follow six steps:
1. Establish financial objectives.
2. Prepare plans, including strategies and budgets, to
achieve the objectives.
3. Measure progress periodically and from this infor
mation adjust objectives and plans when appropri
ate.
4. Minimize tax payments.
5. Prepare an estate plan to direct the transfer of wealth
at death.
6. Get professional help.
Procrastination is probably the greatest obstacle to
achieving financial happiness. Thought and effort are re
quired. There is no happiness pill. So challenge your cli
ents to get started. Challenge them to define their financial
objectives, the real ones, the pragmatic ones, the ones they
are willing to commit to and strive to achieve. Challenge
them to define them in a concrete way and to reduce them
to writing.
The goal of “accumulate all the wealth I can” is no goal
at all. It will probably never produce satisfaction. It will
probably always produce frustration because none of us
will ever accomplish that absolute maximum. There is
nothing to measure achievements against. By its nature,
it denies the satisfaction of achievement.
Financial happiness is more nearly a state of mind than
a state of pocketbook. It can be only partially purchased.
But financial happiness is attainable, perhaps with your
help, by young and old and by the rich and the not-sorich! —• End

W e b e li e v e t h a t c la i m s s h o u ld g e t t h e
s a m e s e r v i c e w e g i v e n e w in s u r a n c e .
They happen. The defaults. The foreclosures.
The insurance claims.
We expect them. It’s the reason w e’re here.
And so we move on them. The way you’d expect
us to. Maybe even in ways you don’t expect.
Our claims people are ready to help with
delinquencies. W e’ll write or phone or contact
your borrower if you want us to. Help in any way
we can to keep the loan good.

But sometimes a loan goes sour. It’s incurable
And so you submit a claim.
When you do, it’s acted on. Now. Fast and fair.
Exactly the way we said it would be when we
wrote the insurance.
That’s the way we service a claim because
that’s the way we service
everything. Even
| Bkk| Bkv
new insurance.
I I 1
It has rights too.
H
l v l l

Guaranty Corporation
826 N. Elm, Box 21567, Greensboro, NC 27420 (919) 273-6961

Contact United Guaranty Residential Insurance Company • P.O. Box 778, Bettendorf, Iowa 52722.
In Iowa (800) 292-0047. In States bordering Iowa (800) 553-8976.
United Guaranty Residential Insurance Company • 300 Morgan Building, Portland, Oregon 97205.
In Washington and Idaho (800) 547-1064, In Oregon (800) 452-7697.

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

N o rth w e ste rn

B anker, June

1975

Bankers' Market Place
Tel-Pak Drive-up Window
A NEW
unit which can handle up to five
drive-up lanes has been introduced by
LeFebure Corporation, Cedar Rapids,
la.
The unit is available as a complete
package to help tellers handle high
volume motor banking in less time.
The overall size is 160" wide x 63"
high. A big counter working area,
156" wide x 29" deep, provides plenty
of working space for two tellers. There
is room to handle up to four teller
terminals, according to LeFebure.
An electircally operated deal drawer
extends H V i" to customer when in
open position. The simplified controls
are at the tellers’ fingertips. A com
pletely transistorized two-channel high
fidelity communications system is pro
vided in the Tel-Pak unit with weather
proof outside microphone and receiver.
A teller call buzzer is standard.
Tellers have full visibility with big
double bay front and side windows.
Glass is bullet resistant and tinted
gray. The clean styling of the highly
polished stainless steel finish blends
with most any architectural treatment.
Undercounter cash handling pedestals

for the Tel-Pak window unit are avail
able.
The inside of the unit is finished in
high quality charcoal colored baked
enamel with complementary black
linoleum counter top. The working
area is lighted by two fluorescent tube
fixtures, each with four bulbs 72" long.
All exposed members of the interior
of the window are insulated with a
minimum of \V ï" fiberglass.
There are three 110 volt AC outlets
for each bay. Venetian blinds are stan
dard for front and side bays.
A manual drawer can be provided
instead of the standard electric deal
drawer.
50, a passive in
I NFRAGUARD
frared motion detection system, is

the newest addition to the Mosler elec
tronic security.
Unlike other area protection sys
tems, the INFRAGUARD 50 is im
mune to false alarms from changes in
natural light or sunlight levels, heating
and air conditioning systems, noise,
vibration, electrical and radio dis
turbances. With INFRAGUARD, an

alarm is triggered only by a change in
thermal energy and movement of the
detected heat source — both condi
tions must exist before an alarm can
occur.
INFRAGUARD 50 utilizes a
patented “Guard Grid” sensor head
which contains hundreds of sensing ele
ments; the grid divides the protected
area into narrow sectors. When a heat
source (the human body) crosses two
or more sectors, the alarm is activated.
Each INFRAGUARD sensor head
detects infrared energy over a field
of view 70° high by 70° wide, with a
range of 50 feet, and total area cover
age of up to 1200 feet. Each sensor
head is pre-focused and pre-adjusted.
Heads may be individually or in com
bination without interacting with each
other. The sensors feature all solidstate components, tamper-proof highimpact plastic case, walk-test lamp
and optional alarm functions. The sys
tem has been tested and approved by
Underwriters Laboratories.
The system is ideal for lobby pro
tection, vandal protection, and is the
first line of security against vault at
tack. In most cases, the system can be
installed at substantially less cost than
perimeter protection for comparable
area.
For further information on the
INFRAGUARD system, write Mosler
Safe Company, PR-004, 1561 Grand
Boulevard, Hamilton, Ohio 45012.
over a period of
years and combining a number
D
of different ideas, Rand McNally has
eveloped

now introduced the “All Class” cou
pon design for the more economical
operations of your Christmas Club.
Simply stated, the “All Class” con
cept permits the financial institution to
purchase coupon books in relation to
total number of clubs rather than inN o rfor
t h wFRASER
e s te rn Banker, June
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1975

The
Transit
M anager.
He found a way out
of the day-late,
dollar-short d item ma.

Dave has found a system that provides more
cash on hand for his bank through:
Our R apid Transit S y ste m — The
Northern Trust’s own direct send program
accepts Dave’s unsorted cash letters later
than most deadlines in Chicago and pro
vides immediate availability for many finan

cial centers throughout the country.
Our Automatic Funds Program—a
unique reporting system that gives him to
day’s inform ation today on available
deposits.
Our Deposit Analysis Service—a peri
odic, computerized analysis that provides

complete, accurate data on deposit activity.
End result: Dave has more money
available to invest for more profit. You
could too. Our Trial Cash Letter will help.
To set it up, contact your Calling Officer at:
The Northern Trust Bank, 50 S. LaSalle
St., Chicago 60690. (312) 346-5500.

The Northern Trust Bank

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

Bring your financial future to us.

44
ministration checks, disability and
pension checks. These checks can be
deposited directly to free checking ac
counts designed for people 62 and
over.
This service can be offered free of
charge to senior citizens in a direct
mail campaign, which would include
a signature card for them to fill out
and return to the bank with the first
deposit.
For further information, contact
Herbert Dunhill at Senior Citizens Un
limited, 273 Columbus Avenue,
Tuckahoe, N. Y. 10707 —• (914)
632-1595.
"Tk IEBOLD Contract Services, Inc.,
a subsidiary of Diebold, In
corporated, has introduced a complete
automatic Remote Banking Facility
that includes a Diebold TABS Total
Automatic Banking System, a Diebold
After-Hour® Depository, appropriate
alarm protection, and an attractive
double-hexagonal shaped building.
The facility can be delivered and ready
for operation in approximately 90
days. Generally, the only field work
involved other than a foundation slab
is electrical connection.
The Diebold Remote Transaction
Facility provides two interior areas.
One is for customer service and in
cludes two forms desks plus customer
access to the Diebold TABS System

and After-Hour Depository. The other
area provides service access to the
equipment. The customer area is en
closed by floor to ceiling tempered
glass panels for full visibility of cus
tomers as a security consideration.
The ceiling is fully luminous, and
the heating, as well as air conditioning
system, is pre-installed. Flooring in the
customer area is ceramic tile. Standard
exterior panels are in sand finish
although brick or stone aggregate
panels are optionally available.
The Diebold Remote Transaction
Facility offers the additional advan
tage of being easily relocatable when
desired.
For additional information, contact
Diebold, Incorporated, Canton, Ohio.

ventory books in class denominations.
In this way, savings of 20% or more
are achieved through the purchase of
fewer books.
Coupon books are not class identi
fied until sold and then the outside
front cover is simply check-marked to
provide the customer with the amount
of regular payment. The coupon con
tinues to create the implied obligation
for systematic savings.
Operation with the “All Class” cou
pon will require proof encoding of dol
lar amount in M.I.C.R. Other fields
can be pre-encoded as with class type
books. The new coupon can also be
used with a manual posting system.
Test market customers have found
flexibility an optional feature of the
“All Class” system, in that customers
can easily pay more than originally
agreed since the coupon is not marked
with dollar amount until payment is
made. With this payment flexibility,
tellers can be instructed to take only
one coupon regardless of the amount
of money paid, thus further reducing
paper work. As a further savings, con

sidering flexibility, 50 payment cou
pons are unnecessary. The 25 payment
book is less bulky, creates less han
dling, and is equally as efficient — and
is less expensive.
Frank Blaser, vice president of
Rand McNally’s financial systems di
vision, says the “All Class” coupon
book is perfectly suited for small to
medium size institutions or branch op
erations. A more detailed operation
description is available on request.

N o rth w e ste rn

Banker, June

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

197S

DIRECT MAIL appeal to Senior
Citizens in any community can be
made with a current mailing list of
names and addresses of persons over
age 62, available on gummed labels in
ZIP numerical sequence for ready-af
fixing to a bank’s own envelopes. A
purchasing bank is assured of a 60day exclusive on the Senior Citizen
market in its banking area.
The mailing list will make it possi
ble for a bank to reach senior citizens
in the community who are receiving
Social Security checks, Veterans Ad

IVf OW available from Diebold, Incorporated is a 35mm film cam
era surveillance system for financial
institutions that can provide for as
many as three cameras from one con
trol system.
Called the Diebold CL-35, the sys
tem utilizes cartridge-loading cameras.
The film cartridges are human-en
gineered to enhance the reliability of
the system by reducing the chances
of human error in loading. As a result,
the procedure necessary to keep the
cameras ready for operation has been
greatly simplified.
The Diebold CL-35 camera has
aperture stops ranging from f2.8 to f22
to compensate for varied lighting con
ditions and 1 /1 00th of a second
shutter speed for clear, stop-action
photos. Operation of the camera is ex
tremely quiet, lessening the possibili
ty that holdup men would be aware
that filming was taking place.
For additional information, contact
Diebold, Incorporated, Canton, Ohio
44711.

T h e new
1975 MHT COUPAY
Our fully automatic, fast, and accurate
coupon paying and destruction system.
COUPAY, the first fully
automated coupon paying and
destruction system, could put
your state and municipal bond
business into high gear. A shift
into COUPAY at Manufacturers
Hanover can actually save you
money.
Compare these exclusive
MHT COUPAY features with your
present system:
• no sorting of coupons by hand
• no costly storage of unreconciled
coupons
• no risk of destroying today’s
high denomination coupons
• no coupons without a numerical
listing

COUPAY is so foolproof
that Manufacturers Hanover
guarantees all items listed on our
destruction certificate as well as
all “stops” that have been properly
placed with us.
Get all the details about
COUPAY from your National
Division Representative or
Lawrence M. Masterson,
Manufacturers Hanover, 40
Wall Street, New York, N.Y.
10015. Tel: (212) 623-2691.

MANUFACTURERS p f
HANOVER U

mso

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

N o rth w e ste rn

Banker.

June

19 7 5

Carter Golembe Calls for Action
To Strengthen State Banking System
Z”'1 ARTER H. Golembe recently
^ urged action to strengthen the
state system of banking in the face of
challenges that threaten its relative im
portance compared to the national sys
tem of banking.
The chairman of Golembe Associ
ates, Inc., a Washington-based bank
ing and economic consulting and re
search firm, addressed the 74th annual
convention of the Conference of State
Bank Supervisors in Kansas City.
Mr. Golembe conceded that the pos
sibility of all banks being subjected to
uniform reserve requirements imposed
by the Federal Reserve and the possi
bility of state restrictions on geograph
ic expansion by branching being re
laxed pose a threat to the state system
of banking.
Those developments, he said, could
prompt a substantial number of state
banks to convert to national charters
and could lead to a sharp decline in the
large number of banks whose existence
now depends largely on “branching
limitations and other restrictions on
competition.”
Mr. Golembe observed that a “vig
orous campaign” against “two devel
opments which many would argue are
in the public interest” might prove
fruitless. “I do not know that opposi
tion to these changes will as a matter
of fact hold either one of them off too
much longer,” he said.
“The more positive approach,” he
said, “is to make certain that the state
system of banking has all of the vitality
and attractiveness which can be built
into it, regardless of whether the future
brings uniform reserve requirements or
the elimination of small and uneco
nomic banking units.”
To do that, he suggested “close
study” of such questions as “whether
banks should be supervised by two au
thorities; whether state banking codes
provide the kind of environment for
operations by larger size banks which
is needed in today’s world (to say
nothing of tomorrow’s); whether limi
tations on expansion in the states
growing out of costly and time-con
suming judicial or administrative pro
cedures are forcing some banks to take
national charters; and whether the
quality of supervision provided by
state agencies can be at least as good
if not superior to that provided by fedN o rth w e s te rn

B ankers Jone

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

1975

era] agencies.”
Mr. Golembe said he believes that
“the public is best served by a strong
and vital dual system of banking” in
volving state as well as national banks.
“If we are to preserve that system” he
said, “the time for action is now.”

New Computer System
Continental Bank now offers Chicago-area retailers a fully-integrated
computer system for approving charge
card purchases and checks.
The system — which operates with
Master Charge or a retailer’s check
cashing card, or could be used with a
retailer’s own charge card -— enables
merchants to electronically verify a
card’s validity and credit limit through
in-store terminals connected to host
computers at Continental. It rejects re
voked Master Charge and private la
bel check-cashing and charge cards,
which have exceeded their maximum
credit limits, or are revoked or re
strained for other reasons.
As an added feature, the terminals
complete charge card sales slips, in
cluding merchant and cardholder in
formation, purchase price, and the
authorization number if applicable,
and can display key credit information
regarding check-cashing services. The
system allows for centralized control
of this information.

Continental plans to market this ser
vice to a broad range of single and
multiple-outlet retailers who have large
numbers of check or Master Charge
purchases.
The bank arranges installation of
the terminals and other necessary
equipment and is responsible for main
tenance, according to William D.
Plechaty, senior vice president of per
sonal banking services, including the
bank’s charge card division.
The system, which includes back
up equipment, operates either by in
serting magnetic stripe cards or man
ually entering information on a key
board, Mr. Plechaty said. Also, Con
tinental offers in-house facilities for
producing magnetic stripe check-cash
ing and private label cards for retailers.

Elects New Officers
Edward A. Jesser, Jr., chairman of
United Jersey Banks, Princeton, N. J.,
recently was elected president of the
Association of Registered Bank Hold
ing Companies. He succeeds John G.
McCoy, president, First Bank Group
of Ohio, Inc., Columbus.
Ralph A. Beeton, chairman and
president, First Virginia Bankshares
Corporation, Falls Church, Va., has
become president-elect. Harry Hood
Bassett, chairman, Southeast Banking
Corporation, was elected vice presi
dent.
F.
Forbes Olberg, president and
chairman of Banks of Iowa, Inc.,
Cedar Rapids, was among new mem
bers elected to the Association’s board.

Fed of Chicago Examines Denial Orders
r I 1HE FEDERAL Reserve Bank of
* Chicago continues its examination
of the orders issued by the Board of
Governors involving denials of bank
holding company applications. Having
treated the issue of capital adequacy
earlier, the bank focuses on potential
competition in the April “Business
Conditions,” the bank’s monthly re
view.
The concept of potential competi
tion concerns the possible anti-compet
itive consequences that could result
from combining two businesses that
operate in separate geographic or
product markets. In the 18 years since
the passage of the Bank Holding Com
pany Act of 1956, the Board has is
sued 150 denials. Of these, 76 involved
potential competition, and one-half of
these occurred in 1973 and 1974.
The article describes two main rea-

sons for the recent increase in the
number of denials involving potential
competition. One reason is that several
large states have allowed multibank
holding companies new freedoms, and
these holding companies have been ac
tive in acquiring banks in markets dis
tant from their subsidiaries. Attempts
to acquire large banks in distant cities
are likely to be denied on potential
competition grounds, especially when
the markets are concentrated.
The other primary reason for the
increased number of denials concerns
holding company attempts to acquire
nonbank businesses, such as consumer
finance and mortgage banking compa
nies, that many holding companies are
well-equipped to enter de novo. The
Board has frequently struck down
these applications because of their ad
verse effects on potential competition.

A--

Art Krebs

Arkansas-Louisiana

Ben Adams

Missouri

Jack House

Iowa

Duncan Kincheloe

Texas-Oklahoma

Phil S tr a i g h t

Jack Beets

Nebraska-Colorado

Kansas

Tom Wood

E. L. Burch

Kansas

Vice President

Don Thomason

Senior Vice President

fc l

We have a t iger
in your territory.
Our symbol of strength and
solidity is getting us everywhere.
People like a leader. And
when that leader can also get
behind a problem and give it a
push toward a practical solu
tion-well, that’s United Mis
souri Bank for you.
And for you, all the way.
We are ready to come to you

Bob Widlund

Oklahoma

to help you with your credit
overlines, to help you design
your pension and profit sharing
plans, to help you with your
municipal and government bond
portfolios, and to show you the
many ways our expanded agri
business department can help
you with your farm customers.
Call us at 816-221-6800.

Dave Van Aiken

Kansas

united missouri bank o f kansas city, n. a.
None of the others come close.
N o rth w e ste rn

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

B a n k e r , Ju n e

1975

SPEAKERS and supporting personnel from Continental Bank's staff included, left to right: Don Howe, Jack Whittle and Ralph Abelt,
v.p.'s; L. Kathleen Harker, assoc, econ.; Gordon Benkler, mgr., systems research; Larry Frowick, v.p.; Ric Mayer, 2nd v.p.; Penny
Henrici, and Paul I. Kampner, 2nd v.p.

Seminar Meets “Tomorrow’s Challenges”
SERIES of seminars centering on
A
the theme “Meeting Tomorrow’s
Challenges Today” is being presented
to groups of bankers by the correspon
dent bank division of the Continental
Bank, Chicago. Utilizing the extensive
pool of experienced bank officers in
its own principal divisions. Continen
tal’s program covers The Economic
Outlook, Planning Portfolio Strategy,
a look at When Good Loans Go Bad,
Competing in a Changing Environ-

AT PLATFORM are George Dekker (left),
v.p.; John T. Engebretson (center), inter
nati. bkg. off., and Robert Wahlgren, 2nd
v.p.

ment, Planning for EFTS, Pension Re
form, and Financing Trade; Letters of
Credit and Bankers’ Acceptances.
On a recent visit to Des Moines, a
team of 12 men and women from
Continental presented the one-day
seminar, which attracted 175 bankers
from all over the state. Ralph Abelt,
vice president, who recently assumed
management of an expanded six-state
section that includes Towa, was intro
N o rth w e ste rn

B a nker, June

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Federal Reserve Bank of St. Louis

1975

duced to the audience by William H.
Grove, vice president, who has headed
the division encompassing Iowa for
several years. Mr. Grove now will be
involved in loan administration at a

senior management level, as an
nounced earlier.
The seminars are being presented
at various locations by the correspon
dent department.

NAIA Adopts Policy on Holding Companies
' T 1HE National Board of State Directors of the National Association of
Insurance Agents has approved a new
policy position paper on the associa
tion’s efforts to restrict bank holding
companies and other lending institu
tions from entering the insurance agen
cy business.
John F. Neville, general counsel of
NAIA, said the new policy statement
does not change the association’s basic
position of opposition to banking infil
tration into the agency business.
In summary, the NAIA paper on
bank holding companies states:
The operating procedure of NAIA
representatives with respect to this sub
ject has evolved to the point where it
can be clearly stated and made a defi
nite policy. NAIA proceeds under the
assumption that lending institutions
which loan money and accept deposits
should not be in or enter the insurance
agency business with certain excep
tions.

2. NAIA does not oppose national
or state banks (where state law per
mits) located in communities of under
5,000 population being in the insur
ance agency business.
3. NAIA does not oppose unaffili
ated mortgage bankers being in the in
surance agency business. (See model
bill for definition of lending institu
tion.)
4. NAIA does not oppose loan cor
respondents who are also insurance
agents.
5. NAIA does not oppose members
which are affiliates of bank holding
companies in communities of not more
than 5,000 population. However,
NAIA reserves the right to oppose, by
any and all legal means, the parent
bank holding company.
6. NAIA also reserves the right to
oppose, by any and all legal means,
those bank holding company affiliates
in communities of not more than 5,000
population when the insurance agency
operates improperly by handling busiThese clarifications and exceptions
ness generated outside their commu
include;
nity.
1.
NAIA does not oppose the writ 7. NAIA has removed a specific
ing of credit life, credit accident and grandfather clause and substituted a
health and mortgage redemption insur suggestion that a state association use
ance by insurance agency affiliates of the grandfather that best suits their lobank holding companies.
cal political situation.

H
<

1
v
>

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b u s in e s s to p a r tic ip a te in c o m m e rc ia l loans with all ty p e s of
ban ks, in s u ra n c e c o m p a n ie s a n d o th e r le n d in g institutions.
O u r h elp c a n m a k e up the d iffe re n c e for m o s t any
p ro m is in g b ut p re s s e d m a n u fa c tu re r, w h o le s a le r or d istrib uto r.
We s u p p ly re vo lvin g c re d it s e c u r e d b y a c c o u n ts
re c e iv a b le , inventories, m a c h in e ry , e q u ip m e n t a nd p ro pe rty.
A ls o fu n d s for b uy-ou ts, m e rg e rs a n d c o n s o lid a tio n s .
All at c o m p e titiv e rates.
W h a t ’s more, the loan m a n a g e m e n t e x p e rtis e w e a p p ly
will d o m o re th a n p ro te c t y o u r in v e s tm e n t a n d ours. It will
e v e n tu a lly p ut y o u r c u s to m e r in a p o sition w h e re he no
lo n g e r n e e d s o u r help.
N e xt tim e e xtra m o n ie s are n e e d e d , ta p y o u r n e w
su p p ly . Call BFC (th a t’s us). At 6 1 2 -3 7 2 -7 9 8 8 . O r write
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M in n e s o ta 55402.

Financial Corporation
An Affiliate of Northwest Bancorporation

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Federal Reserve Bank of St. Louis

N o rth w e ste rn

Banker. June

1975

50
V

Honored By Northwestern University

ALUMNI AWARD — William G. Ericsson (rig h t), president, American N ational Bank
and T rust Co., Chicago, looks on as Richard C. Christian, president, M arsteiler,
Inc., Chicago and chairm an, N orthw estern U niversity A lum ni Awards com m ittee,
presents the U n iversity’s A lum ni Service award to Mr. Ericsson fo r outstanding
volun ta ry service to N orthw estern, at the Evanston (III.) scho ol’s awards banquet.
Mr. Ericsson’s a ctivity at Northwestern U niversity includes service as presi
dent of the NU Club of Chicago; an A lum ni trustee; chairm an of the com m ittee
fo r Task Force on U niversity Life; A lum ni Association vice president fo r A lum ni
program s; and, chairm an o f N orthw estern’s Estate Planning Advisory C om m ittee.
Ericsson, who is also executive vice president and d ire cto r of W alter E. Hel
ler, International Corporation, Chicago, is a business ad m in istra tio n graduate of
Northwestern and received his J.D. degree from Loyola U niversity School of Law,
Chicago.

FDIC Creates Office of
Bank Customer Affairs
Chairman Frank Wille recently an
nounced that the Federal Deposit In
surance Corporation is establishing a
special “consumer affairs” unit to be
called the Office of Bank Customer Af
fairs. The new office will report direct
ly to the FDIC board of directors and
will serve as a focal point for protect
ing the legitimate interests of bank cus
tomers in nonmember banks super
vised and examined by the FDIC.

The creation of a separate unit with
in each of the Federal bank regulatory
agencies to “receive and take appro
priate action" upon complaints with
respect to “unfair or deceptive acts or
practices . . . by banks” is required by
the terms of Public Law 93-637,
passed by the last session of the Con
gress and signed into law by the Presi
dent on January 4. The FDIC Office
of Bank Customer Affairs also will:
— receive all bank customer com
plaints and inquiries sent to the

Our new dimension in Investments . . .
extends your new dimension in Liquidity

FDIC, with responsibility for
prompt investigation and appro
priate disposition and for coor
dinating the work presently per
formed within FDIC by mem
bers of the Division of Bank Su
pervision, the Legal Division
and other personnel;
— recommend to the FDIC board
of directors proposed regulations
and policy statements applicable
to nonmember banks for the
protection of bank customers,
e.g., in such areas as equal credit
opportunity, fair housing lend
ing, bank advertising practices
and real estate settlement prac
tices:
— recommend to the FDIC board
of directors formal enforcement
action against nonmember banks
where previous efforts at volun
tary compliance with the re
quirements of “consumer legisla
tion” or bank customer regula
tions and policy statements have
been unsuccessful; and
— recommend to the FDIC board
of directors special investiga
tions and surveys related to
bank customer matters.

Comptroller Amends Reg on
Trust Dept. Investments
Comptroller of the Currency James
E. Smith has amended his regulation
on bank trust department investments
in variable rate notes to provide re
strictions on their custody and limita
tions on certain classes of lenders.
The changes were adopted after
consideration of comments received
from a notice of proposed rule making
published in the Federal Register Jan
uary 28, 1975.
One limitation provides that each
bank collectively investing its trust de
partment funds in a variable amount
note must maintain the note on its
own premises; another that it cannot
mix such funds with the trust depart
ment funds of other banks. The Comp
troller stressed that banks may not
lend trust funds through this type of
note to their own affiliates under any
circumstances.
The amendments become effective
July 1, 1975.
Life Executive Promoted
James E. Chapman, F.L.M.I., has
been advanced from assistant secretary
to assistant vice president, credit divi
sion operations, of the Pacific Stan
dard Life Insurance Co., Davis, Cal.

N o r t for
h w eFRASER
s te rn B a n ker, June
Digitized
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Federal Reserve Bank of St. Louis

1975

l u u i t r n u i J u it *

From Personal Lawsuits
Even in the Board Room
Directors and officers can be sued personally, their life savings
and homes put in jeopardy. Wrongful Acts claims against
individuals of companies and organizations are increasing.
Such things as failure to attend board meetings, or alleged
inefficient administration have resulted in lawsuits against
individual company officers.
You don't need to take this risk.
Employers Mutual Companies of Des Moines writes Directors
and Officers Liability Insurance. It will cover claims leveled
against individual officers, plus legal expenses and other costs.
A deductible applies to each loss, including defense costs, but is
tailored to fit each insured. The policy also covers reimbursemer
to your compony when if has to pay an officer or director for
such personal claims.

Prorecr Yourself W ith
Directors and O fficers Liability Insurance
from

MS
Employers Mutual Companies
Des Moines, Iowa

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

N o rth w e ste rn

Banker,

June

1975

"A man’s got to get some mud on his boots
before he’s any use out here.”
^he city is the city.
The country is the country.
T hat’s a difference we’ve always
appreciated at American National.
And so we offer our correspon
dents several unusual services
specially developed to meet the
needs of banks outside the big city.
For example, we have an
automated bond accounting service
that can streamline your investment
pricing, and the accounting on your
whole investment portfolio.

And we can offer you a whole range of
management tools, from expense
reporting systems to employee
benefit programs.
W e’ve also staffed our corre
spondent department with people
who understand the unique needs
of a small city bank. From personal
experience.
One of them is Mike Byrne.
And we hope you’ll call him the
next time you need the kind of help
that only a big-city bank can offer.

AND TRUST COMPANY OF CHICAGO

LaSalle at Washington/LaSalle at Wacker 60690/Phone (312) 661-5000/Member FDIC

N o rth w e s te rn

B a n k e r , June

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Federal Reserve Bank of St. Louis

1975

NEW O FFIC ER S— 2nd v.p., John R. Montgomery, Lakeside Bank, Chicago; pres., Arthur
Busboom, Bank of Rantoul; v.p., Ray G. Livasy, M illiken Natl. Bk., Decatur, and treas.,
G. Wallace Rich, First Natl. Bk., Cobden.

Busboom Heads Illinois;
Asks AMBI To “ Return Home”
By MALCOLM FREELAND
Publisher

^ > T op priority for my term will be
to continue and expand the 1BA
programs for bankers in an effort to
reunite and work as one industry.”
This was the comment made by
Arthur F. Busboom, president of the
Bank of Rantoul, following his elec
tion as president of the Illinois Bankers
Association last month in Chicago. He
succeeds William O. Kurtz, president,
Metropolitan Bank & Trust Company,
Chicago.
Chances that bankers in Illinois will
reunite soon seem remote. Mr. Kurtz
called for the liquidation of AMBI, the

Association of Modern Banking in Illi
nois and invited AMBI members to
“return home.” AMBI represents the
group that split with the IB A because
of its policy opposing branching and
multi-bank holding companies. In the
current session of the Illinois legisla
ture the I BA has succeeded in killing
eight separate AMBI sponsored
branching bills. None of the bills got
out of committee.
With the advent of unmanned point
of sale terminals, approved by Comp
troller of the Currency James E. Smith,
many authorities feel that the real fight

for brick and mortar branches is over.
Mr. Kurtz indicated from the conven
tion platform that the future may be
in POS (point-of sale terminals).
Comptroller Smith appeared as one
of the key speakers and indicated that
“there may not be a feeling of warmth
among Illinois bankers for me.” He
suggested that Electronic Funds Trans
fer Systems may be the boom rather
than bane for community banks. His
reasoning for approving unmanned
point of sale terminals stems from con
sumers demands for more convenient
service and from widening competition
from savings and loan associations and
other financial institutions. Following
his talk, he issued regulations limiting
customer bank communication termi
nals to a 50-mile area from the head
quarters bank or branch. The mileage
restriction will not apply to shared sys
tems. and the restriction will be lifted
July 1, 1977.
Elected with Busboom to the top
IBA positions were: Ray G. Livasy.
president, Millikin National Bank of
Decatur, to first vice president; John
R. Montgomery III, president, Lake
side Bank, Chicago, to second vice
president, and G. Wallace Rich, presi
dent. First National Bank of Cobden,
to treasurer.
President’s Address
Expressing concern that the banking
industry is oriented toward tradition
and experience rather than toward
change, President-Elect Busboom pro
jected three thoughts:
“The first thought is that we’re deal
ing with a society that believes more
and more that what’s good for people
is good for business. This leads us to

LEFT— James R. Thom pson, U.S. Attorney, Chicago; James E. Smith, C om ptroller of the Currency, W ashington, D.C., and Arthur
Busboom, IBA pres., Rantoul.
N o rth w e ste rn

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B a n ker, June

1975

Minois News

LEFT— Robert W alton, Farmers & Merch. St. Bk. of Bushnell; Bill Davis, American Natl. Bk., Chicago, and Ed Schablin II, Busey First
Natl. Bk., Urbana. RIGHT— EFTS update was made by James E. True, Mid-America Payment Exchange, St. Louis, and George Auble,
Midwest Automated Clearing House, Chicago.

FIRST of ST. LOUIS party finds from left: Clarence C. Barksdale and Mr. and Mrs. Dick Rathgeb of host bank with Mr. and Mrs.
Mike Dove, Shelby County St. Bk., Shelbyville.

Number Two, which is the need to un
derstand that consumerism is no longer
simply an expression of individualism.
We are in an era where consumerism
is an organized function. It’s an era of
class action suits, of Federal legislation
in support of the consumer, and of
emotional demands on the business
man to satisfy the needs of people. All
this leads up to my third point. A vast
majority of the public will not vote for
loyalty over value. Loyalty can’t func-

tion without the partnership of real
value to back it up. Today’s slap on
the back and smile on the face must
be accompanied by real professional
service and an ability to satisfy an in
dividual’s needs in the marketplace.

Frederick F. Webster
Funeral services were held recently
for Frederick F. Webster, board chair
man of the First National Bank of Des
Plaines.
Mr. Webster became a director of
the bank in 1946 and was elected
chairman in 1957 succeeding his
uncle, the late A. L. Webster. He be-

gan his business career with Public
Service Company and for many years
served as both president and chairman
of Simpson Estates, Inc.

N o rth w e ste rn

B a n ker, June

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Federal Reserve Bank of St. Louis

1975

Resolutions
Members of the Illinois Bankers As
sociation once again approved the res
olution that would “continue support

Rochelle
Appoints
Howard
cashier of

State Remodels,
New Officer
Timmins has been named
the Rochelle State Bank.

of all legislation which upholds the
sound principles of the unit banking
system and one bank holding compa
nies and opposition to any legislation
that would permit branch banking or
multiple holding company banking in
Illinois and interstate branching in our
nation. Until the membership author
izes a change in such policy, the offi
cers and administration of the Associa
tion shall continue to oppose legisla
tion contrary to the aforesaid policy.”
He brings 18 years of banking experi
ence to Rochelle.
The bank also has announced the
recent remodeling of its basement into
a large community meeting room. The
bank had a formal dedication of the
new facility in late April with the city’s
mayor accepting the community room
on behalf of Rochelle.

O u rid eao f
correspondent banking:
THE COMMITTEE OF ONE.
Our people are real, live, experienced correspondent professionals, with
years of correspondent banking behind them. So, since they aren't shiny new
management trainees or just goodwill ambassadors, they have the authority
to okay loans or services on the spot. Without going through a committee.

WE CALL YOU BY NAME
NOT BY PHONE.
Because we work person
to person, eye to eye, with the
management of every corres
pondent bank, right there at
the correspondent bank, things
get done faster. Friendlier.

WE’RE THE BANK
FOR THE NEW DOWNTOWN.
NBB is the biggest bank on Michigan Avenue.
The hub of Chicago’s new changing skyline. But we’ll
extend the New Downtown to wherever you are.
WE’RE BIG ENOUGH TO SERVE YOU, BUT
SMALL ENOUGH TO TAKE CARE OF YOU.
That’s why we can give you
literally dozens of services. Like loan
participations. Bond portfolio analysis
and advice. Safe-keeping of securities. t
Credit information. Use of our
computers. Executive search.
And more. I t’s all part of being
w hatever kind of bank you
need us to be.

BANKER TO BANKER.
NOT BANK TO BANK.

The bank for the New Downtown
NATIONAL BOULEVARD BANK
OF CHICAGO
400-410 North Michigan Ave., Chicago, 111. 60611 Phone (312) 467-4100 Member FDIC

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Federal Reserve Bank of St. Louis

N o rth w e ste rn

Banker,

June

197S

Illinois News

IBA Convention Photos

PARTY given by N ational Boulevard Bank fin d s H ost Irving Seaman seated between Mrs. Richard Lignoul and her husband, who is
C o m m issio n e r of Banks in Illin o is . RIG HT— Mrs. Seaman is show n w ith Chas B. Hall, reg. adm. of natl. bks., and the Arthur
Busbooms, new IBA pres, from R antoul.

LEFT— Marvin Knedler and Bob Schutt of Bank C o n su lta n ts of A m erica, B oulder, C o lo., and Mr. and Mrs. John Janson, C o m m unity
Bk. of H o m ew o od -F lossm oo r. RIG HT— Mr. and Mrs. A. J. Wegeng, St. Bk. of C hrism an; Mike Whelan, Drovers N a tl., Chicago; Charles
Baum, Green Rock, and Bernard Miller, Drovers N a tl., Chicago.

First Galesburg National
Executive Changes
Reorganization into five divisions
and several officer promotions have
been announced by Richard M.
Bishop, president of the First Gales
burg National Bank. Alphonse H.
Huels, promoted to vice president and
cashier, will be responsible for the op
erations division; R. Roger Wise,
elected vice president, will head the
commercial banking division; Donald
S. Robinson, vice president, will be re
sponsible for the investment and trust
division; Larry D. Wright, vice presi
dent, will head the retail banking di
vision and H. Ray Moore, vice presiN o rth w e ste rn

Banker. June

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Federal Reserve Bank of St. Louis

1975

dent, will administer the corporate
planning and marketing division.
In addition, a controller function
was established to be under the direc
tion of Edwin N. Davis, senior vice
president and secretary.
Promoted to assistant vice presi
dents were; Charles A. Linn, also trust
investment officer; R. Lane Small
wood, also trust officer; J. Loren
O’Donnell, also correspondent bank
officer, and E. Kay Conlon, also man
ager of instalment loans. William J.
Atkinson was promoted to personnel
officer. New officer promotions include
Patricia J. Edwardson, assistant cash
ier and head teller; Rollin W. Roselle,
assistant auditor, and Rodney E.

Brake, assistant manager, accounting.

John E. Westhoff
Funeral services were held recently
for John E. Westhoff, deputy director
of Bank Administration Institute, na
tional trade association headquartered
in Park Ridge, 111. He died of an ap
parent heart attack in Lake Buena
Vista, Fla., while attending a BAI
conference.
A veteran of more than 20 years in
banking, Mr. Westhoff, 52, joined
BAI in 1969 as director of the techni
cal division. He previously had been
affiliated with Bank of California,
N. A., San Francisco.

Work with a banker
who knows what his bank
can do for you.

At First National Bank in St. Louis, our represen
tative bankers are trained in what our bank can do for
you. Across the board. Department by department.
The result is men with solid experience and
individual authority. So they can make fast decisions
for you on their own.
Now, with an office in Los Angeles, our represen
tatives can work closely with banks in this area for
mutual benefit.
They represent a bank with strong, healthy
growth, and a reputation throughout Mid-America for
unexcelled capabilities in check collection, and cash
management and disbursement. Plus overall expertise
in the handling of national corporate business.
Get to know your First National Bank represen
tatives. They know their bank. They’d like to put us to
work for you.

First National Bank in St.Louis
W r*
Member FDIC H I f l l
N o rth w e ste rn

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Federal Reserve Bank of St. Louis

B anker, June

1975

Illinois News

Banks Hold Cross-Selling Seminar

T. A . MUELLER

CROSS Selling Bank Services Sem inar was held recently by W orth Bank & Trust, Bank
o f H ickory H ills and Burbank State Bank. The 5-day program was held in Oak Lawn and
about 120 employees participated. Conducting the classes were (seated at the far
rt): Robert A. Deacetis, v.p. & cash., Bank of H ickory Hills, Donald J. Epifanio, v.p.,
W orth Bank & Trust, and Lois Fleming, real estate loan off., W orth Bank.

To Head Oak Forest Bank
James A. Waldorf has been elected
president of the Interstate Bank of Oak
Forest. He came
to the bank in
1973 and was
named executive
vice president and
chief executive of
ficer in April,
1974. In six years
with First Wis
consin National
Bank of Milwau
J. A . W A LD O R F
kee, he managed
three different branch offices. Mr.
Waldorf is a graduate of the Univer
sity of Notre Dame.
Elected at Momence
The Eastern Illinois Bank in
Momence, which is celebrating its
fourth
anniver
sary, recently an
nounced the elec
tion of a new di
rector.
He
is
Donald C. Starks,
executive
vice
president and ex
ecutive officer of
the bank. Mr.
Starks
replaces
D. C. STARKS
Rex Rowe as director.
IBA Trust Division
Elects President
Jack L. Simpson, vice president and
trust officer, Champaign National
Bank, recently was elected president
of the Illinois Bankers Association
(IBA) trust division.
Mr. Simpson’s term commences July
1, 1975. Other officers elected for the
new term include: first vice president,
Alfred E. Gallo, president and trust
N o rth w e ste rn

B anker, June

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Federal Reserve Bank of St. Louis

1975

officer, Cosmopolitan National Bank,
Chicago;
second vice president,
Everett W. Kassing, assistant vice
president and trust officer, First Na
tional Bank, Belleville, and secretary
Donald X. Murray, assistant secretary,
IBA.
Executive
committee
member
elected for a three-year term is James
T. Chalikis, vice president, American
National Bank & Trust Company, Chi
cago.

Rock Island Bank
Executive Changes
George J. Trauten, president of the
First National Bank of Rock Island,
recently was elected chairman of the
board. Charles C. Wilson was elected
president after serving the past year
as senior vice president.

G . J. TRAUTEN

C. C. W IL S O N

Mr. Trauten had been president
since 1965 and has been associated
with the bank since 1939. Mr. Wilson
joined the bank in 1961 after serving
with the Continental Illinois National
Bank of Chicago.
Theodore A. Mueller was elected
executive vice president. In 1974 he
served as senior vice president. He
formerly was a senior vice president
with Mercantile National Bank of
Hammond, Ind.
Glen A. Richeson, senior vice presi
dent and cashier, was elected to the
board. He joins Messrs. Wilson and

G . A . R IC HESO N

Mueller as members of the office of
senior management.

Joins Lincoln Bank
Sylvan L. Franklin has been elected
president of First National Bank in
Lincoln. He has moved from Wauke
sha, Wis., where
he served as sen
ior vice president
in co mm erc ial
loans since Au
gust, 1973.
Prior to join
ing the Waukesha
bank, Mr. Frank
lin was with Con
tinental Bank of
S. L. FR A N K LIN
Chicago for 14
years and was a vice president in the
commercial banking department be
fore leaving the bank. During his ser
vice with the Continental, Mr. Frank
lin was well-known among Iowa bank
ers in connection with his work in the
correspondent banking department.
He is a 1957 graduate of the Uni
versity of Illinois with a B.S. degree
in Commerce and Law. He is also a
1971 graduate of the Graduate School
of Banking at the University of Wis
consin.
First Ogden Corp.
Expands Nationwide
First Ogden Corporation, a bank
service firm with headquarters located
in the Chicago suburb of Naperville,
has decided to expand its sphere of op
erations nationwide, according to Ver
non S. Hoesch, company president.
In a prepared statement, Mr.
Hoesch said that “the decision to open
the company’s services to banks in
states outside Illinois was based on
studies and interviews which showed
a need for the group banking concept
among smaller banks in other states,
allowing them to compete with larger
banks in their market areas.
First Ogden is one of the pioneer
bank service firms in the country.

filelike . . .

your insurance
O P E N IN G U P A

P A N D O R A ’S B O X?

insurance is ali about? Do you know w ha t the new pension reform act has to
do w ith yo ur operation? Do you know w hy you carry the insurance you now
carry? Is yo ur insurance c u rre n t and com plete?
There is only one answ er . . . fro m the firm th a t counsels over 300 fin a n c ia l
in s titu tio n s th ro u g h o u t the M idw est.

Call or write . . . Robert A. Carney, President

Insurance Programmers, Inc.
327 South LaSalle Street, Chicago, Illinois 60604— (312) 939-3366

N o rth w e ste rn

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Federal Reserve Bank of St. Louis

Banker,

June

1975

MINNESOTA

Drop an ch o r w ith u s a t th e Top of th e Harbor.
Bring yourself, your wife, your associates and join us for a party.
In the Radisson Duluth’s Top of the Harbor penthouse
restaurant.
We’ll be there to welcome you, from 4:00 ’til 6:00 June 9 and
10 during the 85th Annual Minnesota Bankers’ Convention.
Come enjoy yourself with Paul Lindholm, George Palmer,
Tom Hayden, Howard Luick, Ralph Nelson and Gary Lundeen.
We take your business personally.
Helping you change things for the better.

Q northwestern
National Ban k
Of Minneapolis
N o rth w e ste rn

Banker, June

1975

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Federal Reserve Bank of St. Louis

Member FDIC

Minnesota Bankers
Association 85th Convention
Duluth, Minnesota
June 9-11, 1975
X

G. M . PIESCHEL
P re s id e n t

J. D. C H IS H O L M
N o m in e e fo r
P re s id e n t

T " | ULUTH will again be the site of the Minnesota Bankers Association annual
meeting when the 85th annual convention is called to order. The city’s
beautiful Civic Arena and Auditorium will be the setting for most of the func
tions. Presiding will be G. M. Mike Pieschel, president of the Farmers & Mer
chants State Bank, Springfield, and president of the MBA.
The nominating committee has announced the following names will be
submitted to the convention for ratification as officers for the coming year:
President— John D. Chisholm, president, Marquette Bank, and Trust Company,
Rochester; Vice President—C. Paul Lindholm, senior vice president, Northwest
ern National Bank, Minneapolis, and Treasurer (reelection)— Elwood Throndrud, president, Northwestern State Bank, Ortonville.
Serving as convention general chairman is John M. Owens, president, North
western National Bank of Duluth.
The convention schedule follows:
Sunday, June 8
Council of Administration meeting
Monday, June 9
A.M.
7:30
9:00

C. P. L IN D H O L M
N o m in e e f o r
V it e P re s id e n t

11:00
11:00
P.M.
2:00

Men’s Golf Tournament — Northland Country Club.
Ladies Golf Tournament — Ridgeview Country Club.
Men’s and Ladies’ Tennis.
Registration — Arena-Auditorium Lobby.
Ladies’ Hospitality Center — Arena-Auditorium Foyer.

Ladies tour to Spirit Mountain and Area Cultural Center.
Hospitality Rooms open.
6:30 First Night Party and Entertainment — Arena-Auditorium.
9:30 p.m.-Midnight Hospitality Rooms open.
Tuesday, June 10

A.M.
7:00
8:00
9:30
9:30
E. T H R O N D R U D

Treasurer

P.M.
12:15
12:15
T. L. JEFFERS
Exec. V ic e Pres.

1:0Q

Registration — Arena-Auditorium Lobby.
Fellowship Breakfast -— Arena.
Ladies’ Hospitality Center — Arena-Auditorium Foyer.
First Business Session —- Auditorium.
Presiding — MBA President G. M, Pieschel.
Presentation of Colors and Opening Ceremony.
Opening Remarks and Announcements.
Greeting — Duluth Mayor.
Address —• Economy/America.
A.l.B. Presentation.
Savings Bonds Presentation.
Report of Nominating Committee and Election of Officers.
Treasurer’s Report.
Executive Vice President’s Report.
Address — Governor Wendell Anderson.
Drawing for Color TV and Recess.
Reception (s) — Past Presidents/50 Year Bankers
— Men Delegates.
Men’s Luncheon — Arena.
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Federal Reserve Bank of St. Louis

Banker, June

197$

M innesota N ew s

12:00

It’s
Convention
Time!

3:00
6:30

Ladies’ Luncheon — Northland Country Club.
Hospitality Rooms open.
Annual Banquet.
Introductions and Installation of Officers.
Entertainment — featuring The Duluth Accordionnaires.
Dancing —• Les Elgard and his Orchestra.
Wednesday, June 11

A.M.
7:30
8:00
9:00

We look
forward
to seeing
all of
our friends.
11:45
9:30
Noon

Continental Breakfast — Arena-Auditorium.
Registration.
Second Business Session — Auditorium.
Presiding — MBA President Pieschel.
“New Developments for Minnesota Bankers and Our Customers.”
In Legislation —- “A Summary of State and Federal Banking Laws.”
In Communications — “MBA, ABA, and the Bicentennial.”
In Operations — “Direct Deposit of Social Security Checks.”
“EFTS — What’s Ahead?”
Neal McDonald —- Twin City Federal Savings & Loan Association,
Minneapolis.
Esther Peterson — Former Presidential Consumer Advisor,
Giant Stores, Inc., Washington, D, C.
Lawrence Kreider — Executive Vice President,
Conference of State Bank Supervisors,
Washington, D. C.
Russell C. Browne, Jr. — Advisor for Payment Systems,
Office of the Comptroller of the Currency,
Washington, D. C.
ABA Meeting and Election.
Report of the Resolutions Committee.
Report of the President.
Drawing for Color TV and Recess.
Ladies’ Hospitality Center — Arena-Auditorium Foyer.
Ladies Program.
General Luncheon — Arena.
“The View from the White House” — Tom Brokaw,
NBC-TV White House Correspondent,
Washington, D. C.

P.M.
2:00

MINNESOTA
JUNE 9-10-11

MIDLAND
NATIONAL BANK

Of Minneapolis
401 SECOND AVE. SO., MPLS., MN 55480
CALL 372-7000
An Affiliate of Northwest Bancorporation

Banco
N o rth w e ste rn

B anker, June

1975

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Federal Reserve Bank of St. Louis

Convention adjourns.

New National Bank
To Open in Eden Prairie
Preliminary approval to organize a
new national bank in Eden Prairie has
been granted by the U.S. Comptroller
of the Currency, James E. Smith.
The proposed First National Bank
of Eden Prairie will be located in the
major center area of Eden Prairie near
the Eden Prairie Center which is
presently under construction. The
800,000 square foot Regional Center
is scheduled for opening in early 1976
and initially will house two department
stores and 100 mall tenants.
The bank will have an initial capi
talization of $2 million and will not be
affiliated with any existing bank or
bank holding company. Ownership will
be local with stock to be sold in the
area at a later date.
No opening date for the bank has
been set; however, a late 1975 open
ing is probable.

Agent for the bank is Roy W. Terwilliger, Eden Prairie, who will serve
as the chairman when the bank opens
for business. Mr. Terwilliger is vice
president of International Realty &
Investments, Inc. and the former ex
ecutive director of special activities of
the American Bankers Association and
a former executive manager of the
South Dakota Bankers Association.
Other organizers who will also serve
as directors include James W. Emison,
vice president and secretary of Oskey
Gas and Oil Company, Minnetonka;
John J. Hall, president of Interna
tional Realty & Investments, Inc.,
Washington, D.C.; Dean A. Holasek,
president of Aqua Engineering, Eden
Prairie; Robert D. Labat, president of
Creative Financial Companies, Wayzata; M. F. Mickelson, chairman of
Fabri-Tek, Inc., Minneapolis and
George T. Pennock, chairman of Ten
nant Company, Golden Valley.

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Federal Reserve Bank of St. Louis

Banker, June

1975

N o rth w e ste rn

B anker.

June

1975

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Federal Reserve Bank of St. Louis

INTRODUCING THE FIN AN CIAL
INFORM ATION CON TROL SYSTEM (FICS)
».

*■

FICS is a complete and comprehen
sive accounting system that provides you
with an accurate picture of your financial
position on a regular monthly basis.
FICS supplies critical information con
cerning the past and present performance
of your bank and its various departments,
as well as the relative cost and profitability
of the functions and services of the bank.
Armed with this up to date financial
data, bank presidents and managing
officers can make timely decisions which
have a positive impact on the bottom line
results of the bank.
FICS is a computerized system that
now provides banks with the accounting
procedures previously available to only
the largest institutions.
FICS is a highly flexible system that
can keep pace with you r grow th and
diversification into new operations. FICS
also allow s you to select your own
accounting and reporting method. With
in this framework, FICS can provide you

with a wide range of reports for control
and management decision making.
So what is the bottom line of all this?
FICS is an essential tool for sound
banking management. FICS reduces the
cost of preparing financial statements.
FICS offers a more complete picture of
your financial position. FICS provides up
to date financial information for incisive,
expedient management decisions.
For more information on how FICS
can help you stay on top of your bottom
line, mail the coupon below.
Correspondent Bank Division
First National Bank of Saint Paul
332 Minnesota Street
St. Paul, Minnesota 55101
Send me more details.

Nam e_________________
A d d re ss______________
C ity__________________
State_________________________ Z ip_________
W -l

YOUR BOTTOM LINE IS OUR TOP PRIORITY.

C o rre s p o n d e n t Bank D ivision

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Federal Reserve Bank of St. Louis

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B a n k e r , Ju ne

1975

ILLIAM Buethe
has
been
elected president of the First
State Bank of North St. Paul. Mr.
Buethe, 39, succeeds the late W. R.
Herrick. He formerly was with the
First National Bank of Mankato,
Minn., and the Southern Arizona Bank
and Trust Co., Phoenix, Ariz. Mr.
Buethe is a graduate of Mankato State
College.
* * *
First National Bank of Minneapolis
has promoted William F. Lind to in
vestment officer in the trust fixed in
come research and portfolio manage
ment division. A graduate of St. Olaf
College in Northfield, Mr. Lind has
been with First Minneapolis since
1972.
Clinton Morrison is the new chair
man of the board of directors of the
Chamber of Commerce of the United
States for 1975-76. Mr. Morrison is
vice chairman of the board and chair
man of the trust committee of the
First National Bank of Minneapolis.
* * *
Paul S. Blackburn has been named
advertising manager of the First Na
tional Bank of
Minneapolis. He
succeeds John E.
Morgan, who re
cently was pro
moted to director
of marketing ser
vices.
Mr. Blackburn
for the past year
and a half has
p. s. b i a c k b u r n
been with D’Arcy,
MacManus & Masius advertising
agency in St. Paul where he was an ac
count executive servicing the 3-M
Company’s graphics systems group. He
is a journalism graduate of Drake
University, Des Moines, with a major
in advertising.
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Federal Reserve Bank of St. Louis

Ì9 7 S

Clarence A. Adams, president,
Banco Financial Corporation, has
announced the promotion of Robert
L. Olson to assistant vice president and
the appointment of Michael R.
Campion to loan officer responsible for
the loan administration department.
Mr. Olson joined the bank in 1974.
He will supervise the analytical and
auditing departments.
Banco Financial Corporation, a
secured lending company, is a whollyowned subsidiary of Northwest Bancorporation, a registered bank holding
company based in Minneapolis.
* * *
The Advertising Club of Minnesota
recently announced that it has chosen
G o r d o n Malen
“Advertising Man
of the Year” for
1975. He is as
sistant vice presi
dent of the First
National Bank of
Minneapolis.
Mr. Malen will
receive the American Advertising
G M MAl[N
Federation s Sil
ver Medal Award at a reception and
dinner dance at the Decathalon Club
on May 20, 1975.
Dorothy Litvany of the Federal
Reserve Bank, Minneapolis, has
moved up from vice president to presi
dent, Minneapolis chapter of the
American Institute of Banking (AIB).
Jerry Sognesand of F&M Savings
Bank has been elected vice president
of the chapter. He will automatically
become president for 1976-77. Mr.
Sognesand is supervisor of F&M’s Pay
by Phone operation.
* * *
John R. Gaertner, M. D, Catherine
F. Picollo and C. Harvey Wilkins have
been elected directors of the First

Merchants State Bank of St. Paul.
* * *
Banco, Inc., the audit services sub
sidiary of Northwest Bancorporation,
has announced the election of four new
officers. Elected assistant vice presi
dents and regional audit officers are
Richard Klovstad, northeastern Min
nesota; Cal Wilson, Montana, and
Maurice Collison, southern Minnesota
and several large metropolitan Banco
banks
in
Minneapolis/St. Paul.
Elected as administrative officer is
LaVonne Carpenter.

Groundbreaking for
New Building

SHOWN is Stanton M. Jorgens, v.p. &
mgr., St. Anthony Falls office o f the First
N a t’l Bank of Minneapolis, tu rn in g the firs t
shovelful of earth a t the site o f a new
bank bldg. Looking on are em ployees o f
the office w ith the present bldg, at E.
Hennepin and 4th Street N.E. shown in
the background. It is scheduled fo r com
pletion in early 1976.

You should know som eone
in th is picture.

We are highly qualified
to help any of your cus
tomers who need banking
services in California.
We represent one of the
ten largest banks in the
country. A bank with over
one hundred years of expe
rience, and assets that now
total over fifteen billion
dollars.
Security Pacific Bank.
We view each referral as
a double opportunity—to
provide the caliber of pro© 1 9 7 5 SECURITY PACIFIC NATIONAL BANK

MEMBER FDIC

fessional service that will
meet the standards of both
the customer and the bank
that put him in touch
with us.
When we re not visiting
your area, you can reach us
at either of the addresses
below. If you don’t recog
nize any of the people in
the picture, that’s all the
more reason to call.
We would never ask you
to refer a customer to a
stranger.

Head Office: 333 So. Hope
Street, Los Angeles,
California 90017.
Phone (213) 613-6211.
Northern California
Headquarters: One
Embarcadero Center, San
Francisco, California 94111.
Phone (415) 445-4000.
Correspondent Banking

SECURITY PACIFIC BANK
SOMETHING SPECIAL
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Federal Reserve Bank of St. Louis

B a n k e r , Ju ne

19 7 5

Minnesota News

MBA Announces Convention Committees
H P HE Minnesota Bankers Association Convention committees have
been announced by John M. Owens,
general conven
tion chairman and
president, North
western Bank of
Commerce, Du
luth. Mr. Owens
was chosen by
MBA P re sid e n t
G. M. Pieschel,
president. Farm
ers and Merchants
J. M. O W EN S
State Bank,
Springfield. Other Duluth Committee
members are:
Banquet
Committee:
Chairman
C. C. Lind, president, First National
Bank; Charles W. Henderson, North
western Bank of Commerce; Larry L.
Gilb, Northern City National Bank;
Leonard Griffith, First National Bank;
Richard Gronlund, Duluth National
Bank; and D. R. Wolf, Airport State
Bank.
First Night Party Committee: Chair
man James H. Claypool, president,
Northern City National Bank; Henry
Royer, First National Bank; William
E. LeNeau, Northern City National
Bank; Donald A. Kimmel, Northwest
ern Bank of Commerce; and Willis
Hutchinson, Western National Bank.
Men’s Golf Tournament Commit
tee: Chairman John G. Ring, vice
president, Northwestern Bank of Com
merce; John Oltmans, First National
Bank; Robert M. Hammerstrom,
Northern City National Bank; and
Larry D. Johnson, North Shore State
Bank.
Hotel, Registration and Transporta
tion Committee: Chairman Claude A.

Lutzka, assistant vice president, First
National; Roy W. Olson, Duluth Na
tional; Duane C. Gronlund, Northern
City National; Larry Peak, Airport
State; and Robert Sharkey, Western
National.
Publicity Committee: Chairman
John Peyton, president, Pioneer Na
tional; Clyde V. Stube, Western Na
tional; and Patrick Francisco, North
ern City National.
Luncheon Committee: Chairman
James A. Hengel, president, North
Shore State.
The Ladies’ Committee is chaired
by Bernice Chisholm. Marquette Bank
and Trust Company, Rochester. Mem
bers of the committee include: Jodi
Pieschel, Farmers and Merchants State
Bank, Springfield; Thora Allen, First
National Bank, Milaca; Leila Jeffers,
Minnesota Bankers Association; MBA
Council of Administration Wives; and
wives of Duluth bankers. The Ladies’
Committee plans the luncheon for the
banker wives who attend the conven
tion and also provides tours and other
activities for the ladies during the three
day convention.

Executive Changes at
Citizens State, Winsted
Arthur Kappel has been advanced
from president to chairman of the Citi
zens State Bank of Winsted and Ralph
Rathmanner has been named presi
dent.
Mr. Kappel has been with the bank
since its first day of business in 1932
when he and J. J. Sterner brought the
assets of the bank from Lester Prairie
to Winsted.
Mr. Rathmanner, formerly execu
tive vice president, has over 20 years

of experience in bank management and
operations. He also is licensed in the
life and health insurance fields and is
a licensed real estate salesman.

Willmar Bank Builds
Drive-In Facility
First National Bank of Willmar is
building a new remote auto banking
facility in the 800 block between First
and Second Streets. The structure will
provide walk-in teller services as well
as six auto lanes for drive-up custom
ers.
D. W. Thompson is president of the
bank.
Chaska Bank Elects Director
Luke Melchert has been elected to
the board of the Carver County State
Bank in Chaska, according to D. Wr.
DuToit, Jr., bank president. Mr.
Melchert is affiliated with the law firm
of Melchert, Hubert & Howe with of
fices in Chaska and Waconia.
Elected at Le Sueur
Andrew Willaert has been elected
a director of the Le Sueur State Bank.
He is a farmer from southwest of Le
Sueur.
Wilmont Bank Celebrates
25th Anniversary
The First National Bank of Wilmont
recently celebrated its twenty-fifth
birthday with an open house. E. L.
Meyer is the bank’s president.
To Head Wykoff Bank
Richard A. Maki has been elected
president of the First State Bank of
Wykoff, according to Fred Wall, III,
chairman.
Most recently Mr. Maki was as
sistant vice president of the National
Bank of Wisconsin in La Crosse, a
position he had held since 1965. Prior
to that he was with the First National
Bank in Hibbing and First Service
Corporation in Minneapolis, all affiliates of First Bank System in Min
neapolis.
Kent State Sold
R. Dean Hegeholz, president of the
Kent State Bank, has sold the bank to
Franz Gerber of Exeland, Wise., who
will become active in the Kent bank.
Mr. Gerber has appointed Curtis Ask
of Dakota National Bank, Fargo, as
managing officer.

N orthw estern B a n k e r , Jun e

1975

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Federal Reserve Bank of St. Louis

Minnesota Ne ws

Mr. Ask first joined Dakota Na
tional in 1962. He was an instalment
loan officer and most recently was as
sistant cashier.

MBA Sponsors 4-H Delegates

BAI Releases Survey on
Bank Operating Losses
Tellers lose an average of $140 an
nually, according to BAI’s newly re
leased “Survey of Bank Operating
Losses.”
The new publication presents the
latest data on the nagging problem of
operating losses, supplied by nearly
1,000 BAI member banks.
Based on returns from banks in
eight size categories, the study esti
mates that overall losses for the period
surveyed (1973) amounted to $175
million.
Of this number, bogus checks ac
counted for the greatest dollar loss (an FOR the 27th consecutive year th e MBA has sponsored 4-H delegates to the National
estimated $45 million), with human 4-H Conference in W ashington, D. C. The delegates shown here w ith MBA ag & rural
errors in various processing depart developm ent com m ittee chm n., Clinton Kurtz, v.p., Citizens State, Norwood (le ft) &
ments accounting for the next highest Wayne Berthiaume, MBA ad m in istra tive asst, (rig h t) are Kris Bjornson, Hawley; Scott
Schloesser, Le Center; Mayo Rusten, Clearbrook, & Liz Templin, Plato.
amount (an estimated $38 million).
Teller differences ranked third with how one bank successfully approached curity officers in member banks with
$29 million. The study reports mini the problem of teller differences.
resources over $25 million. Copies
mal bank losses in the area of coun
The survey has been mailed without may be obtained fom the BAI Publi
terfeit securities and currency.
charge to the voting representatives in cations Division, P.O. Box 500, Park
Also incorporated in the new pub all BAI member banks, as well as the Ridge, 111. 60068. Cost: $6 ($3 to
lication is a case study that describes auditors, operations officers, and se members).

Channel
your costs.
Ship by sea, through the Seaway Port of Duluth, the Upper Midwest’s
gateway to the world market. You’ll be saving two of your most precious
commodities— money and fuel.
It takes 500 trucks or 200 rail cars to move the 10,000 tons one
general cargo ship can haul in a single trip. Join others in the Upper
Midwest who are taking advantage of the Minnesota World Port at
Duluth, now shipping containerized cargo anywhere in the world,
and building more facilities to do it better. Ask for the full story.

Duum-H®
MINNESOTA’S WORLD PORT
Midwest Trade Office
A H AM ES, M a n a g e r
2021 E. H ennepin Ave.
M inneap olis. M inneso ta 5 5413
Phone 6 1 2 -3 3 1 -3 3 4 7

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Federal Reserve Bank of St. Louis

Seaway Port Authority of Duluth
C. T H O M A S BURKE, E x e c u tiv e D ir e c t o r
ALAN J O H N S O N , D ir e c t o r o f In t e r n a t io n a l S a le s & M a r k e t in g
Box 310 • Duluth, M innesota 55801 • U S A.
Phone 2 1 8 -7 2 7 -8 5 2 5

Eastern Trade Office
W ILLIA M L. KASPER, M a n a g e r

One World Trade Center, Suite 2045
New York, New York 10048
Phone 212-775-1279

Northw estern

B a n k e r , J on e

1975

Minnesota News

You Will See Them at the Annual
Minnesota Bankers Convention
H P HE following metropolitan bank-■* ers and services and equipment
dealers have indicated that they will
be attending the annual convention of
the Minnesota Bankers Association in
Duluth, June 9-11.
Chicago
American National Bank & Trust
Company: J. Roy West, second vice
president.
Continental Illinois National Bank
& Trust Company: L. H. Haupt, III
(Terry), correspondent bank officer.
First National Bank: Thomas M.
King, vice president, and Clarence E.
Cross, Jr., loan officer.
The Northern Trust Company: John
N. Fix and Gary Gribben.
Minneapolis
First National Bank: Donald Bergum, Raymond H. Johnson, S. R. Ornlie and Kenneth A. Wales, vice presi
dents; D. R. Christenson and Charles

V. Shewey, assistant vice presidents;
Allen G. Highum and F. Wm. John
son, correspondent banking officer;
Herbert Olson, bond investment of
ficer, and Dennis Lastine, Minnie
Schroeder and Dolores Walstrom,
bond representatives.
Marquette National Bank: E.
Thomas Welch and Gary B. Wollan,
senior vice presidents; Avery G. Pick,
vice president, and William J. Adding
ton, Richard E. Holmes, Paul J. Roche
and William C. Rosacker, assistant
vice presidents.
Midland National Bank: Stanley
J. Peterson, vice president; W. Merton
Dresser, group vice president, and
Gordon J. Spartz, assistant cashier.
Northwestern National Bank: John
A. McHugh, president; C. Paul Lindholm, senior vice president; Howard
G. Luick, vice president, and Thomas
A. Hayden, Ralph A. Nelson and
George W. Palmer, correspondent
bank officers.

New York
Bank of New York: John S. Hunter,
assistant vice president.
First National City Bank: Frank J.
Utting, vice president, and C. Norman
Gustafson and John L. Norris, account
officer.
Manufacturers Hanover Trust Com
pany: Earl H. Lundin, Jr., assistant
vice president.
Saint Paul
American National Bank and Trust
Company: John F. Nash, president;
Art A. Haessig, Robert W. Jacobson
and Donald H. Johnson, vice presi
dents, and Robert T. Knopke, assistant
vice president.
First National Bank of St. Paul:
James T. Gowan and R. C. Swanberg,
vice presidents; Philip M. Broom,
Donald R. Lindeman, Robert Peroutka and Henry N. Snyder, assistant vice
presidents; Kenneth A. Heiser, cor
respondent bank officer, and Jerry
Borovansky, Clayton Johnson and Kit
B. Svee, investment officers.
South Saint Paul
Northwestern National Bank of
South Saint Paul: Robert S. Branham,
president, and Hoyt W. Lathen, senior
vice president.
Bank Equipment and Other Firms:
Dawson Hail Insurance: Lyle Askerooth, vice president, and Chuck
Fosberg.
Mosler Safe Company: Jerry Stites,
region manager; Charles Singer, re
gion
install ation/service
manager,
Ray Barsness, Chuck Browning, Har
vey Larson, Ron Mason and Chuck
Myers, sales representatives.
NYTCO Services, Inc.: Leo H.
Hermes, vice president (St. Paul).
Piper, Jaffray and Hopwood: Rich-

Well be
here to
greet you.
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Federal Reserve Bank of St. Louis

1975

Minnesota Ne ws

ard Larson, Glen Lindgren, and Duane
Zwolensky.
St. Paul Hospital & Casualty: Oscar
Lipke, vice president; Paul Wold, mid
west sales manager, and Gabe Kuhn.

First Robbinsdale State Expands Drive-In

Northern City, Duluth,
Names Vice Presidents
C.
Glenn Rye, chairman of the
Northern City National Bank, Duluth,
has announced the promotions of two
officers to vice presidents. They are
ARCHITECT'S sketch of th e new and expanded d rive -in /w a lk-u p bank o f First Robbins
dale State Bank. The fa c ility w ill have 6 drive-in lanes and 3 walk-up windows, according
to Kenneth C. Sheehan, bank pres. It is being constructed on the site o f the bank’s
present drive-in, w hich has 2 lanes and 2 walk-up windows.

J . D. CHAPMAN

T. W . BRECHLIN

James D. Chapman, commercial loan
department, and Thomas W. Brechlin,
also promoted to investment officer.
Mr. Chapman joined the bank in
1959, was appointed regional manager
of the computer services department
in 1962, assistant cashier in the real
estate loan department in 1969 and
assistant vice president in commercial
loans in 1971.
Mr. Brechlin also has been with the
bank since 1959. He was elected an
assistant trust officer in 1967, trust in
vestment officer in 1970 and in 1974
he assumed responsibility for heading
the investment area of the trust depart
ment.
Waseca Bank Promotions
The First State Bank of Waseca has
announced the following staff changes:
Larry Bondhus and Lowell Bruns, as
sistant vice presidents; Scott Schei, as

sistant cashier and assistant manager
of the instalment loan department, and
Gary Hedstrom, advertising and mar
keting officer.
Mr. Bondhus formerly was cashier
of the First State Bank of Benson, also
an affiliate of First Bank System. Mr.
Bruns will continue as manager of the
instalment loan department.
Construction Begins on
New Bank in Slayton
Construction has begun on a $120,000 building with drive-in facilities for
the new Peoples Bank of Slayton to be
located at the corner of 25th and
Broadway.
Original incorporators are Royal
Lear, Jerry Bennett, Douglas Ander
son, Dale Reed and Dr. J. L. Bader,
all of Slayton, and H. J. Koob of
Iona.
Open House at Sanborn
¡The Sanborn State Bank recently
moved into new banking quarters and
held an open house for the public.
The new quarters are octagonal in
shape with 2,600 square feet on the
main floor and a full basement. Lobby

Join Us
The Forest Suite
Radisson Duluth
June 9-10-11

F ir st

area is highlighted by open beam ceil
ings and a skylight. There are four
teller windows, a drive-up window and
a night depository.

Looking fo r good people fo r your bank?
L o o k no fa rth e r th a n B a n k e rs P e r
s o n n e l. W e m a in ta in a s u b s ta n tia l file o f
a va ila b le b a n k in g p e rs o n n e l, at all levels
o f e m p lo y m e n t.
A n d w e k n o w b a n k in g and b a n k in g
p e o p le th r o u g h o u t th e c o u n try . W e ’re
th e T w in C itie s fir s t and o n ly e m
p lo y m e n t a g e n c y d e s ig n e d , d e ve lo pe d ,
d ire c te d and s ta ffe d by fe llo w b a n k e rs .

Call 338-8111 or w rite :
B ankers P erso n n el, Inc.
Fifth Floor, FB.M. Bldg.
245 Marquette Ave. So.
Mpls., Minn. 55402
A ll inq u irie s s tric tly confidential.

n atio n al

Ba n k
Of Duluth
An Affiliate of Northwest Bancorporation
Member FDIC

N o rth w e stern B a n k e r , J u n e

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Federal Reserve Bank of St. Louis

1975

700 Main Avenue, Box 1657
B ism arck, ND 58505
(701) 224-2945
ND W .A .T .S . No.: 800-472-2166

Bank of
M Dakota

ALL DEPOSITS ARE GUARANTEED BY THE STATE OF NORTH DAKOTA

Statement of Condition
April 16, 1975

ASSETS
Cash a nd Due fr o m B a n k s ....................................................................................................... $ 30,923 403.88
U. S. T re a s u ry S e c u r i t i e s .........................................................................................................
2 3,5 34,484.82
O b l ig a t io n s o f U. S. A g e n c ie s & C o r p o r a t i o n s ...............................................................
62,4 10 .8 46 .7 2
O b l ig a t io n s o f S ta te s & P o lit ic a l S u b d i v ............................................................................
1 3,127.562.97
O th e r S e c u r itie s ..........................................................................................................................
8 7,4 57 ,0 31 .6 6
Federal F ds. S o ld & S e c u r itie s P u rch a se d U n d e r
A g r e e m e n t s to R e s e l l .........................................................................................................
O th e r L o a n s ...................................................................................................................................
B ank P re m is e s , F u r n it u r e and F ix tu r e s , and
O th e r A s s e ts R e p re s e n tin g B a n k P r e m i s e s ...............................................................
O th e r A s s e t s .................................................................................................................................

49,225 ,0 00 .0 0
1 19 ,280,116.20

T O T A L A S S E T S .....................................................................................................................

$390 ,0 0 7 ,956.65

924,906.37
3 ,1 2 4 ,6 0 4.03

LIABILITIES
D em an d D e p o s i t s .......................................................................................................................
T im e and S a v in g s D e p o s i t s ....................................................................................................
D e p o s its o f U. S. G o v e r n m e n t ................................................................................................
D e p o s its o f S ta te s & P o litic a l S u b d i v ..................................................................................
D e p o s its o f C o m m e r c ia l B a n k s .............................................................................................
C e r tifie d and O f f ic e r s ’ C h e c k s , e t c .......................................................................................

5,855,22 9.58
14,140,439.31
59.309.54
2 81 .609,397.13
11.714 757.71
365,277.87

T otal D e p o s i t s .......................................................................................................................
Federal F u n d s P u rc h a s e d & S e c u r itie s S o ld U n d e r
A g r e e m e n t s to R e p u r c h a s e .............................................................................................
O th e r L ia b i l i t i e s ..........................................................................................................................

$ 31 3,744,411.14
36,836 ,0 00 .0 0
4 ,1 8 9 ,0 03.10

T O T A L L I A B I L I T I E S ............................................................................................................ $ 35 4,769,414.24
C A P IT A L A C C O U N T S
C a Pi t a l ............................................................................................................................................
S u r Pl u s ............................................................................................................................................
U n d iv id e d P r o fits .......................................................................................................................
Reserve fo r C o n t in g e n c ie s & O th e r C a p ita l R e s ..............................................................

6 ,00 0,00 0.00
10,000,000.00
1 7,198,412.27
2 ,040,130.14

T otal C a p ita l A c c o u n t s .......................................................................................................

$ 35,238,542.41

T O T A L L IA B IL IT IE S , R E S ER VES , A N D C A P IT A L
A C C O U N T S ............................................................................................................................

$ 39 0,007,956.65

BND REACHED $424,000,000 IN ASSETS ON MAY 9, 1975

N orthw estern

Banker,

June

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

1975

OFFICIALS of the N orth Dakota Bankers A sso cia tio n are pictured in fro n t of the
W estw ard Ho C onvention Center in Grand Forks fo llo w in g th e ir electio n last m onth. Left
to rig h t are: Im m ed. Past Pres. — Emil E. Kautzmann, v.p.-cash ., Mandan Security Bank,
M andan; P res.— Gerry C. Anderson, pres., The Bank of Tioga; 1st V .P .— Carlyle P.
Austinson, exec, v.p., N orthw ood State; 2nd V.P. — Henry N. Ness, sr. v.p. & ag rep.,
Fargo N atl. B&T, Fargo; Trea.— Alvin Haas, pres., State Bank of B urleigh County,
B ism arck, and Exec. S ecy.— W illiam Daner, B ism arck.

Gerry Anderson Heads North Dakota Bankers
By BEN HALLER, JR,

Editor
\

MID the unique setting of the Old by all area media, as well as units of
West as recaptured in the West CBS-TV and NBC-TV. Secretary Butz
ward Ho Convention Center at Grand stressed the vital role played by the
Forks, Gerry C. Anderson was elected
president of the North Dakota Bankers
Association at the 90th NDBA con
vention. Mr. Anderson, president of
The Bank of Tioga, succeeds Emil E.
Kautzmann, vice president and cashier
of the Mandan Security Bank. More
than 600 attended the meeting.
Other officers elected to serve with
Mr. Anderson are: 1st Vice President
— Carlyle P. Austinson, executive
vice president, Northwood State Bank,
Northwood; 2nd Vice President —
Henry N. Ness, vice president and ag Pres. Emil Kautzmann and U. S. Secretary
rep, Fargo National Bank & Trust of A g ricu ltu re Earl L. Butz vis it before the
S ecretary’s luncheon address.
Company, Fargo, and Treasurer —
Alvin W. Hass, president, State Bank banking industry in maintaining Amer
of Burleigh County Trust Company, ican agriculture, which is trying to feed
Bismarck. William J. Daner, Bismarck, a good share of the world. These ef
continues as executive secretary.
forts are leading us closer to world
One highlight of the convention was peace, he noted. In his conclusion, he
the major address by Secretary of Ag stated:
riculture Earl L. Butz at the noon
“I think we’re close to the day when
luncheon. His appearance was covered we can beat swords into plowshares

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Federal Reserve Bank of St. Louis

and spears into pruning hooks. When
that day comes, the American farmer
can hold his head high and say, ‘I
helped make that happen. I translated
food into the international language of
peace.’ ”
Dr. Thomas J. Clifford, president
of the University of North Dakota at
Grand Forks, emphasized North Da
kota’s resources of food, coal and oil
to meet the nation’s and the world’s
two major problems today —- food and
energy. Many other states, he said,
have similar resources, “but the big
difference here is our water supply to
process those resources. The Garrison
dam runs from Garrison to Williston.
We need to establish a firm water pol
icy that states clearly what North Da
kota’s share of that water will be.”
Dr. Clifford called for cooperation
in policy-making between interests in
the eastern half of the state and west
ern half of the state. “We must know
where we want to go and articulate our
views,” he concluded.
Dr. Paul S. Nadler, professor of eco
nomics at Rutgers University, New
Brunswick, N.J., gave his “Outlook for
Business and Banking.” After his usual
dynamic, informative talk, Dr. Nadler
conducted a 20-minute period of infor
mal questions and answers. In his talk,
he stressed the adverse effect of infla
tion repeatedly. “You can always stop
unemployment,” he stated at the out
set, “but you can’t stop inflation.”
He listed the following causes that
resulted in a 12.4% inflation and the
highest interest rates in 115 years;
Inflation causes — Viet Nam war,
Nixon’s orders to the Fed to get the
money supply rolling by 1972 election
time, the wheat deal, oil, devaluation,
the revolution of rising expectations.
High interest rate causes — For
eigners had dollars and wanted to
spend them. Big U. S. commercial
banks began making loans, then seek
ing deposits via Eurodollars and Fed
Funds. The Franklin National went
under with 25% of its money having
to roll over every night.
Dr. Nadler said “the aggressiveness
of our major banks forced the Fed to
move reluctantly to make money avail
able. Never again,” he stressed, “will
we see major banks having so much
power. High interest rates brought our
economy to its knees.”
On the subject of credit allocation,
he said “you don’t mess with Con
gress,” noting that a bill came within
three votes of ordering the Fed to set
N orthw estern

Banker. June

197$

Nort h D a k o t a N e w s

LEFT— Dr. Paul S. Nadler, pro fe ssor of eco no m ics, Rutgers U niversity, and Dr. Thomas Clifford, pres., U niversity of N orth Dakota,
Grand Forks, v is it afte r giving th e ir addresses to the convention. CEN TER— Henry N. Ness, new 2nd v.p. of the NDBA and sr. v.p.,
Fargo N atl. B&T, is pictured w ith the chairm an of his bank, Bill Braseth. RIG HT— Don Anderson, Bank B u ild in g C orp., C hicago, and
Cletus Byrne, C o ug hlin S. Co., Denver.

interest rates and keep them there,
with rates are supposed to be respon
sive to supply and demand. “But you
can’t thumb your nose at Congress,”
he cautioned. “The big banks caused
the problem by saying ‘We’ll get the
money no matter what it costs.’ Don’t
underestimate Congress. Credit alloca
tion is on the horizon.”
On the subject of diversification. Dr.
Nadler said, “Everyone who went into
non-banking operations wishes he
hadn’t. Bankers are finding that mak
ing loans with deposit money isn’t such
a bad business.”
In his remarks on electronic funds
transfer, Dr. Nadler said he believes
interest on demand accounts is coming,
due to current developments in EFT
withdrawal methods. He thinks the
EFT concept will make an even
stronger case for community banks to
retain bank accounts with personal or
business customers who move away or
are away from home, through the sim

ple ability to continue banking via
electronic methods.
J. Rex Duwe, president-elect of the
ABA, discussed “Community Banks
in the Decade of the ’70s.” He is pres
ident of the Farmers State Bank in
Lucas, Kan., a bank with $5 million
deposits in a town of 595 population.
He is also president of two other banks
of similar size in communities less than
600 population.
Mr. Duwe stressed the reversing
trend of population, with more people
seeking a better life in rural areas,
bringing with this the opportunity to
serve more people in a personal, effi
cient way that has been the trademark
of community banks for decades. Be
cause of this personal tie, Mr. Duwe
said, “You and I have no reason to
fear electronic funds transfer. It is
merely a new way of delivering service.
“As for the argument that moneycenter banks will steal customers if
they can establish an electronic bank

in our towns, that argument just
doesn’t stand up.” Mr. Duwe said such
a move requires a market base that re
quires initial serving of customers —
and that’s the advantage community
banks already have.”
In his conclusion he stated, “EFT
could be the greatest thing we commu
nity banks could have. Small towns
basically are exporters of people. In
our bank we retain the full banking
business, by mail, of many of the peo
ple who have moved from our commu
nity . . . I am optimistic about the fu
ture of the community bank. I believe
that those of us who are aggressive and
seize the opportunity to serve our local
areas will grow and prosper . . . And
I believe we can deliver, if we turn our
attention to the future. We must do no
less, because we are America’s
bankers.”
Clyde H. Fischer, controller at the
Northwestern National Bank in Sioux
Falls, and executive councilman for

LEFT— Rex Duwe (rig h t), pre sid ent-elect of the AB A , presents 50-Year Banker plaques to, from le ft, Franklin Page, cash., Bank of
H a m ilto n ; H. E. Engesather, pres., C itizens State, P etersburg, and A. A. Holmquist, chm n ., Valley B&T, Grand Forks. RIG HT— Lyle
Fering, pres., W estern State, Devils Lake, and Bill Rosacker and Dick Holmes, a .v .p .’s, M arquette N a tl., M in ne apo lis.
N o r t h w e s t e r n B a n k e r , Ju ne 1 9 7 5

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Federal Reserve Bank of St. Louis

Nort h D a k o t a N e w s

LEFT— Ralph Molbert, pres., and Bob Hansen, exec, v.p ., Bank of Steele; Wilbur McGinnis, pres., 1st State, W ilto n ; Paul Lindholm,
sr. v.p., N orthw estern N a tl., M in ne apo lis, and John Scott, ret. pres., Valley B&T, Grand Forks. RIG HT— Ed Olson, exec, v.p ., 1st N a tl.,
Grand F orks, who served as con ven tion chairm an; Howard Luick, v.p ., N orthw estern N a tl., M in ne apo lis; Mrs. Olson, and Harlan
Klefstad, exec, v.p ., Sargent C o un ty Bank, Form an.

LEFT— Gordy Spartz, a .c., M idland N a tl., M in ne apo lis; Gordon Stennes, cash., Harwood State, and his w ife, Anne, and Stan Peterson,
v.p ., M idland N a tl., M in ne apo lis. R IG H T— Dick McKnight, v.p. & t.o ., Dakota N a tl., Fargo, w ith Sherrill and Dan Schorsch, pres., 1st
N a tl., Jam estow n.

District X of the AIB, gave a report
on AIB after its first 75 years of exis
tence. He invited all AIB followers to
attend the Diamond Jubilee convention
in Minneapolis, where the 1975 con
vention was held late last month.
Wayne Stroup, ABA state vice pres
ident and president of the Garrison
State Bank, conducted the ABA meet
ing. Mr. Anderson was named to the
ABA nominating committee for the
1975 convention this fall, and Mr.
Ness was named alternate.
A legislative panel consisting of Mr.
Daner, Sen. George Longmire of
Grand Forks, and Reporter Charles
Haga, Grand Forks Herald, provided
an interesting summary of legislation
at the 1975 session and an insight into
workings of the legislature.
New 40-Year Club members are:
Gordon J. Engen, vice president and
cashier, First National Bank & Trust
Co., Bismarck; Alf L. Garnaas, presi

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Federal Reserve Bank of St. Louis

dent, Farmers & Merchants Bank of
Sheyenne; Gordon S. Larson, presi
dent, First State Bank of Park River;
Carl A. Berg, president, First State
Bank, Cavalier; T. A. Solheim, presi
dent, American Bank & Trust Co.,
Minot, and K. A. Nielsen, president,
West Fargo State Bank. — End

3 Banks Organize
NoDakBONDS in Bismarck
NoDakBONDS in Bismarck has
been formed as a unique joint venture
offering investment services to the
Northern Great Plains banking com
munity.
A partnership of three North Dako
ta banks — First National at Bowbells,
Ellendale and Oakes, NoDakBONDS
hopes to make ripples soon in mar
ket traditionally dominated by Minneapolis-St. Paul firms, according to
John Dewald, president and chief
executive. Mr. Dewald formerly was

an investments officer with the Bank
of North Dakota, Bismarck.

Milnor Bank Names New
President, Chairman
F. A. Mund has been named chair
man of the First National Bank of Mil
nor and H. L. Johnson has been
elected president and cashier.
Mr. Mund, a retired farmer, has
been president of the bank since 1933
and has been associated with the bank
as a director since 1929. Mr. Johnson,
a native of Milnor, has been with the
bank since 1952 and has served as
cashier since 1961.
Valley City Banker
Receives Civic Award
K.
B. Cummings recently received
the Civic Service Award presented by
the Valley City Eagles. Mr. Cummings
is president of the Northwestern Na
tional Bank of Valley City.
Northw estern

Banker,

J un e

1975

North D a k o t a N e w s

North Dakota Convention Photos

LEFT— John Rouzie, pres., 1st N a tl., Bow m an, w ith Aggie and Don Buckman, v.p., 1st N a tl., St. Paul. RIG HT— Jim Gowan, v.p., 1st
N a tl., St. Paul; Mrs. Tufte and Theo Tufte, pres., N o rth w o od State, and Norm Gustafson, acct. o ff., 1st N atl. C ity, New York.

LEFT— John Coleman, v.p ., Bremer Service C orp., St. Paul; Art Haessig and Don Johnson, v .p .’s, Am erican N a tl., St. Paul, and Claude
Zweber, pres., C itizens State, Rugby. RIG HT— Jim Dawson, pres., Dawson H ail, Fargo; Tony Goetz, pres., S ecurity State, New Salem,
and Lyle Askerooth, v.p., Dawson Hail.

LEFT— Paul Olander, pres., Red River N a tl., Grand Forks; George Dixon, pres., Chuck Shewey, a .v.p., Ken Wales, v.p ., and Doug
Hedin, bond de pt., all w ith 1st N a tl., M in ne apo lis. RIG HT— Ross Watson, pres., 1st State, New R ockford, d isp la ys his can of d ie t pop
to Dick Lyman, S m ith, Barney & Co., M in ne apo lis, and Jim Lewis, pres., N atl. Bank of Harvey.
N orthw estern B a n k e r , Jun e

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Federal Reserve Bank of St. Louis

1975

Colorado
News
N. BERNE HART
O en ver
P resid en t
Co lorado B a n k ers A ssociation

To Head Aurora Bank
Mads Anderson, since 1970 presi
dent of North Denver Bank, has as
sumed the presi
dency of Central
Bank of Aurora.
Mr Anderson
began his banking
career in 1954.
Before joining the
North D e n v e r
Bank in 1970 he
was a sso c ia te d
w i t h American
M. AN DERSON
National B a n k ,
Guaranty Bank and Trust Co. and
Colfax National Bank, all in Denver.
From 1964 through 1969 he was presi
dent, director and chief executive of
ficer of First National Bank in Rifle,
Colo.
Colorado Nat’l Makes
Management Changes
The Colorado National Bank, Den
ver, has announced that Melvin J.
Roberts has retired as chairman. Bruce
M. Rockwell was
elected the new
chairman. He had
b e e n p re s id e n t
and chief execu
tive officer of the
bank.
W illia m
W.
(Peter) Grant was
elected president.
He had been ex
ecutive vice presi
dent.
Mr. Roberts joined the bank in
1930. He was associated with Capitol

B. M. ROCKW ELL

W . W . GRANT

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Federal Reserve Bank of St. Louis

Life Insurance Company from 1944
until he rejoined the bank in 1958. He
was elected president in 1962 and
chairman in 1970. He recently was
elected chairman of Colorado Nation
al Bankshares, Inc., parent holding
company for the bank.
Mr. Rockwell joined the bank in
1951 and was elected president in
1970. He recently was elected vice
chairman of the holding company.
Mr. Grant joined the bank in 1958.

3 Denver Banks
Change Names
Three metro Denver area banks
owned by D. H. Baldwin Co. have
changed their names to reflect common
ownership.
In a joint statement, Lucien Wulsin,
Baldwin chairman, and Max G.
Brooks, chairman of the three banks,
announced that Central Bank and
Trust Co., will do business as Central
Bank of Denver.
In other changes, North Denver
Bank will become Central Bank of
North Denver, and Peoples Bank of
Arapahoe County, acquired by Bald-

win in February, becomes Central
Bank of Aurora.
Baldwin Co., Cincinnati-based, and
known as a manufacturer of musical
instruments, also owns Empire Savings
and Loan Association and eight other
banks in Colorado.
The name changes coincide with a
new Baldwin corporate graphics and
identity program.

Bank of Breckenridge
Plans New Building
The Bank of Breckenridge has an
nounced plans to build a new head
quarters building on the southwest
corner of Adams Street at Main Street.
Harvey D. Hoff, president, said
Bank Consultants of America, has
been retained to design the building
“complimentary to the historic at
mosphere” of the ski and recreation
town.
Elected at Lakewood Bank
Susan G. Barnes, an attorney and
member of the firm of Alperstein,
Plaut & Barnes, has been added to the
board of United Bank of Lakewood.

Colorado Convention
A full report with pictures on
the Colorado Bankers Associa
tion annual convention held this
month in Colorado Springs will
be featured in the July issue of
the N orthwestern Banker.

Mountain States Bankcard Officers

RICHARD A. Kirk, e.v.p., United Bank o f Denver, N. A. (3rd from I.) has been elected
pres, of the board of M ountain States Bankcard Assoc., the organization o f 352 banks
th a t sponsor the M aster Charge bank card in Colo., M ont., N. M., N. D,, Wyo. O ther
officers and directors elected are (I. to r.) Jack L. Panter, sr. v.p., Am erican N a t'l, Den
ver; Arnold C. Kimmell, v.p., 1st N a t’l, Denver; Mr. Kirk; Clayton L. Holland, v.p., Con
tin e n ta l N a t'l, Englewood, Colo.; Charles J. Sonnen, exec, dir., MSBA, & Rendle Myer,
Neef, Swanson & Myer law firm , board secy. Also elected dir. were Theodore D. Brown,
pres., 1st N at’ l, Denver; R. J. Frank, pres,, Am erican N a t’ l, Denver; Robert D. Manning,
v.p. & Cont., Jefferson B & T, Lakewood, Colo.; J . Raymond Medley, sr., v.p., Exchange
N at’ l, Colo. Springs, & Neil F„ Roberts, pres., United Banks of Colo.
N orthw estern

Banker. June

J9 7 5

See you at the convention.
Montana:
Jackson Hole,
Wyoming
June 19-21

Duluth,
Minnesota
June 9-11

ilwaukee

First ■ ■
Minneapolis
Correspondent Bank Division

N orthw estern

B a n k e r , Jun e

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Federal Reserve Bank of St. Louis

197S

First National Bank of Minneapolis •

120 South Sixth Street

Member FDIC

OFFICERS — 1st v.p., Charles L. Sea
man; pres., Ted Schanzenbach; 2nd
v.p., Chuck Undlin, and exec. M gr.,
Milt Schwartz.

South Dakota Bankers Elect
Ted Schanzenbach President
By MALCOLM FREELAND
Publisher

r 1 1 HE “ Sunshine S ta te ” lived up to J. I. Milton Schwartz continues as
its name as some 650 bankers executive manager. The 84th annual
and their wives attended the 83rd convention will be held in Mr.'
annual convention of the South Undlin’s home town - Rapid City Dakota Bankers Association in May 13 and 14 at the Howard
Aberdeen last month.
Johnson Motor Lodge.
Ted Schanzenbach, president of
the F irst National Bank, Selby,
Key Speakers
advanced to the presidency, suc
O utstanding speakers featured at
ceeding Henry B. Schelle, president, th e co n v en tio n included Ja m e s
Tri County State Bank, Chamber- Sm ith, adm inistrator of national
lain.
banks, W ashington, D.C.; Bruce
Other new officers are: first vice M acLaury, president, Federal Re
president, Charles Seaman, presi serve Bank, Minneapolis, and Willis
dent, F irst State Bank, W arner, and Alexander, executive vice president,
second vice p re s id e n t, C harles A m erican B a n k e rs A sso c ia tio n ,
Undlin, president, F irst National W ashington, D. C.
Mr. Sm ith explained in detail his
Bank of the Black Hills, Rapid City.

40-50 YEAR BANKERS — Gordon Maxam, N.W . N a tl., Lake Preston (50); Walter Johnson,
Farmers St. Bk., E stelline (50); Albert Haerter, Farmers St. Bk., Hosm er (50); Orville
Bonacker, F irst N a tl., Sioux F alls (40); Bob Walrath, F irst N a tl., W atertow n (40); Lewis
Vanderboom, Natl. Bk. of S. D. (40), and E. J. Harrington, Dakota S t., Colm an (50).

December 12 ruling on point of sale
te rm in a ls and u n m an n ed telle r
facilities, mentioning th a t they are
n o t b ra n c h e s. C o n fro n ted w ith
competition from savings and loan
associations and other financial
institutions, national banks have to
have modern tools to compete,
according to Mr. Sm ith. He warned
th at the new EFTS system s provide
innovations th at can occur in spite of
acceptance by banks.
Following the original ruling, Mr.
Sm ith issued a revision on May 9,
limiting unmanned teller facilities to
a distance of 50 miles from either the
headquarters bank or from a branch.
He suggested th at during the
development period, banks should
work within their own m arket area.
This restriction is to be relaxed as of
July 1, 1976. In addition, Mr. Smith
has asked national banks to exercise
prudent judgm ent in making instal
lations.
Looking ahead, Mr. Smith said
th at more and more decisions will be
made in regional offices of the
national banking division. This will
include acquisitions, new branches
and title changes.
Credit Allocation
Speaking on the allocation of
credit, Bruce M acLaury, president
of the Federal Reserve Bank of
Minneapolis, suggested th at Cong
ress is concerned with the shortage
of money for essential needs such as
housing and small business. He
expressed concern over the fact th at
a number of Congressmen want to
draw up a list of “ good guys’’ and
“ bad guys" listing those who
N orthw estern

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Federal Reserve Bank of St. Louis

B a n k e r , Jun e

19 7 5

South D a k o t a N e w s

PRESS CONFERENCE John O Donnell, SDBA past pres, and pres., F irst N atl., Lem m on, jo in s Exec. Mgr. Milt Schwartz at press
conference featuring, from left: James Smith, adm. of natl. bks.; W illis Alexander, ABA exec, v.p.; Bruce MacLaury, pres., Fed of
M inneapolis, and SDBA Pres. Henry B. Schellle, pres., Tri Co. St. Bk., Cham berlain.

deserve credit and those who do not.
He feels th a t there are other ways
th at would allocate credit in a more
effective manner - and still rely on
m arket forces. As an example, he
would like to see Congress approve a
plan for variable rate m ortgages.
Washington View
Willis Alexander, executive vice
president of the American Bankers
Association, told delegates th at our
representatives in the Congress will
be ju st as effective as we want them
to be. He praised the Congress for
passing the budget reform act, which
should lead to fundam ental financial
management. He explained th at on
May 15 each year, Congress is to
establish a ceiling on expenditures
and p rep a re a s ta te m e n t on
anticipated revenues. On September
15, Congress will come back and

recheck the figures to see if it is on
target. A t th a t time, expenses will
either be cut or revenues increased.
W ith an annual budget of $358
billion - 40% more than ju st four
years ago - fundam ental financial
m anagement is a necessity, accord
ing to Mr. Alexander.
Concluding his talk, Mr. A lexan
der described the recent action of the
ABA governm ent relations comm it
tee. He explained th at the committee
now attem pts to make decisions with
the “ public interest’’ as the number
one consideration.
H osts for the successful 83rd
annual convention were C. P. Buck
Moore, president, First National,
general chairman; Jack M. Thom p
son, president, Aberdeen National;
Gary Svihovec, president, Farmers
and M erchants Bank and T rust
Company, and their able staffs.

The SDBA associate members
hosted the Thursday evening social
hour at the Holiday Inn poolside.
R o b e rt K nopke, a s s is ta n t vice
president of the American National
Bank, St. Paul, was chairman this
year for the Associate Member
Party, which was attended by all
convention registrants.
Annual Banquet
A total of 612 delegates and wives
a tte n d e d th e a n n u a l b a n q u e t.
Trophies in golf and bowling were
presented. Doug Van Meeteren of
the First of Sioux City won the golf
honors. Clarence Erickson of the
Union Bank and T rust, Sioux Falls,
and Bob H abberstad of the Farmers
& M erchants State Bank, Iroquois,
shared top honors in bowling, taking
home twin trophies presented by the
N orthwestern B anker.— End

WAITING TURNS to speak are Bruce MacLaury, pres., Fed of M inneapolis, and Cathrina Bauby, New York. RIG HT— Alice Kundert,
state auditor, jo in s Bobbi Moore at la die s’ luncheon. Mrs. Moore, w ife of pres, of F irst N atl., Aberdeen. Buck Moore, was chm n.

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1975

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Federal Reserve Bank of St. Louis

South D a k o t a N e w s

POINTING OUT some of the various a rt
ifacts is Ellsworth Brown, d ir., Dacotah
Prairie M useum , under whose d ire ctio n
the e xh ib it was prepared w ith the help
of C. P. [Buck] Moore, bank pres.

Aberdeen Bank Features Collection
Of Indian Artifacts for Bicentennial
th a t the bank
wanted to dedicate a program to
A
the nation’s Bicentennial which
n n o u n c in g

spoke meaningfully to the colorful
history of the Indian people, C. P.
(Buck) Moore, president of the First
National Bank of Aberdeen, formally
presented “ The Heritage Collection
of Indian C ulture” to the public
recently.
Ceremonies in the bank lobby were
attended by 200 specially invited
guests headed by members of the
South Dakota Bicentennial Commis
sion.
Over a year ago, the bank started
assem bling the expertise necessary
to make sure the display would be
acceptable to all, and th at it would
be professionally and tastefully
prepared. W orking with Ellsworth
Brown, director of the Dacotah
Prairie M useum, was a special
committee appointed by President
Moore. Included were three members
of the Indian community, two from
the bank staff, and four members of
the bank board of directors.
A rtifacts in the exhibit were
obtained from the Rygh site near
Mobridge, South Dakota, which
Arikara Indians reached in about
1550. Item s in the display date to
about 1800, the time of the first
white contact. They were dug from
the site before the Oahe Dam
b a c k w a te rs from th e M isso u ri
flooded it. About 200 working days
were taken to recover the more than
13,000 artifacts in the original
collection.
The entire display is divided into
three main parts:

(1) A 30-case display th at depicts
the various facets of Arikara life.
This can be sub-divided into three
smaller displays of 15, nine, and six,
still telling the story of the Arikara.
(2) A large 4 by 8 foot panel
reference which relates the whole
story of the b an k ’s purpose and
shows an example of the A rtifacts
and the work. This was presented to
the City of Aberdeen and is placed in
the Aberdeen Airport.
(3) Smaller cases of 12 which are
being used for educational purposes.
Aberdeen has an excellent Indian
educational program , and this will
enhance the program.
Area banks may order the display
for showing in their local communi
ties free of charge except for
shipping costs. Depending upon the
display area available, cases of six,
nine, 15 or 30 may be ordered.

Brochures are included to give the
public, explaining where the arti
facts were found and giving back
ground on the Arikara tribe.
The cases are about 28 inches
square, six inches deep. They are
constructed to display flat, with
from six inches to 12 inches between
each case. No unusual security is
required during business hours b u t
the cases should be in a locked area
at times when they are not under
continued supervision or viewing.
Eight foot folding tables or card
tables provide a good base. About 10
days will be allowed for shipm ent to
one location from another. Inquiries
for more details and for available
booking dates should be sent to the
m arketing departm ent, First N a
tio n a l B an k , A b erd een , S o u th
Dakota 57401. Telephone number is
605/225-2220.

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B an ker„ June

1975

South D a k o t a N e w s

First National, Black Hills,
sistant cashier in charge of operations
and personnel. Rita Schielfelbein, trust
Elects Vice President
Gaylord Raabe has been elected a secretary for over six years, assumes
vice president of the First National the duties of Greg Haggar, assistant
Bank of the Black trust officer, who is leaving the bank
Hills, Rapid City, to continue his education.
Mrs. Drake has served in the transit,
a c c o r d i n g to
Charles T. Undlin, bookkeeping and proof departments.
Mrs. Schielfelbein joined the bank in
bank president.
Mr. Raabe is 1964 and Mr. Haggar in 1970.
manager of the
operations departnent at the bank’s Mitchell National Bank
main office. He Director Changes
John L. (Jack) Morgan and James
joined the bank at
the Belle Fourche A. Bauer have been named directors
branch in 1953 and was promoted to of the Mitchell National Bank. They
assistant cashier in 1955 and to as replace Dr. O. J. Mabee and Orlie
sistant vice president in 1958. He was Feinstein, who have resigned as active
manager of the instalment lending de board members.
Mr. Morgan is a senior partner in
partment at Belle Fourche prior to
the
law firm of Morgan & Fuller, and
transferring to Rapid City as manager
of the Robbinsdale branch in 1963. Mr. Bauer is the owner of Bauer
Dental Studio.
In
1966he transferred to
thereal
Dr. Mabee, at the time of his retire
estate department of the main office.
ment, had served on the board for 26
years. Mr. Feinstein, now a Minneapo
lis resident, had been a director for
Philip Bank Names
four
years.
Ekstrum President
First National Bank in Philip has
announced the promotion of Charles South Dakota Banks
W. Ekstrum to president of the bank.
Show Gain in Assets
Mr. Ekstrum joined the bank in
The 127 state banks in South
1968 as assistant vice president and Dakota reported total assets of
agricultural representative and was $1,245,283,630.60 at the time of the
elected vice president and director in April 16, 1975, bank call, according
1972. Prior to this he was the county to figures released by the state’s di
supervisor for Haakon, Jackson and vision of banking and finance. This
Washabaugh Counties for the Farmers total represented a gain of $96,501,Home Administration for four years.
510.78 over the same April, call of
Mr. Ekstrum recently made a sub 1974.
stantial investment in the bank.
A marked change was noted in
holdings of U. S. Treasury Securities,
which declined by $21,695,963 to
First Nat’l, Watertown,
$177,169,323. Municipal holdings in
Announces 2 Promotions
creased by $37,538,074 to $155,236,Two promotions have been an 631, and U. S. Agencies increased
nounced by Robert Walrath, presi $13,133,782 to $135,447,540. Fed
dent of the First National Bank of Funds sold declined $10,935,000 from
Watertown.
a year earlier and stood at $63,650,000
Mildred Drake, bank auditor for the on this year’s call date.
past five years, was promoted to asLoans, which represented 52.75%
of total deposits, increased $63,582,054 to $593,681,897.
Total deposits on April 16 were
$1,125,377,964.44, a gain of $87,869,366 over a year earlier. Time and
savings deposits represented 66.97%
of total deposits. Fed Funds purchased
were only $300,000, down from the
$2,875,000 reported a year earlier.
Total capital accounts were up
by $8,776,994 to $95,004,590, and
another $10.5 million was in reserves.
M. DRAKE
R. SCHIELFELBEIN
¡N orthwestern

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Federal Reserve Bank of St. Louis

1975

RMA Publishes Paper on
Preventive Law
Commercial lenders could avoid
many of the legal problems that arise
in loan transactions if they took advan
tage of ‘‘preventive law” techniques in
setting up loan agreements.
Edward A. Dauer, associate profes
sor of law at the University of South
ern California Law Center, explains
this theory in an occasional paper just
published by Robert Morris Associ
ates.
In the paper entitled, “Preventive
Law for Lenders: An Illustrative Ap
plication to Contractor Lending,” Pro
fessor Dauer shows how loan officers
and attorneys can work closely to
gether in the planning of a lending
transaction from the outset to avoid
legal problems. He labels this joint
planning preventive law counseling.
RMA has sent a free copy of the 24
page paper to the CEO and the accred
ited (voting) representative of each of
its 1,500 member banks. Additional
copies are $3 to member banks and
$5 to non-member banks from RMA’s
Order Department, 1432 Philadelphia
National Bank Bldg., Philadelphia,
Pa., 19107.
Opens Office in Egypt
Manufacturers Hanover Trust Com
pany, New York, has opened a branch
in Cairo, Egypt, to become the first
American bank to establish a branch
operation in Egypt, according to John
F, McGillicuddy, bank president.
Fed Proposes Rules on
Equal Credit Opportunity
The Board of Governors of the Fed
eral Reserve System has proposed reg
ulations to implement the Equal Credit
Opportunity Act, which forbids dis
crimination by creditors on the basis
of sex or marital status.
The new Act goes into effect Octo
ber 28. It makes the Federal Reserve
responsible for writing implementing
regulations. Enforcement is the respon
sibility of the Federal Trade Commis
sion, the Federal Reserve Board, the
Federal Deposit Insurance Corpora
tion, the Comptroller of the Currency,
and nine other Federal agencies. The
Act covers all who regularly extend
credit to individuals, including banks,
finance companies, department stores,
credit card issuers, and government
agencies such as the Small Business
Administration.

Wyoming Bankers Association
67th Annual Convention
Jackson Lake Lodge
June 11-13

R. W . MIRACLE
P resid en t

M. C. MUNDELL
S e c re ta ry

H. H. W ATT
1st V . P.

bankers will gather at Jackson Lake Lodge in Moran June 11-13
W YOMING
for the sixty-seventh annual convention of the Wyoming Bankers As
sociation, according to Robert Miracle, WBA president and president, Wyoming
National Bank, Casper.
Featured speakers include Richard E. Adkins, president of Osmond State
Bank in Nebraska and Dale Browning, senior vice president, Colorado National
Bank in Denver, who will discuss the status of the electronic transfer of funds.
John Rayburn, KBTV news anchor man, will change the tempo with a lively talk
about what is going on behind the scenes at the television station. D. L. Day will
give a brief talk on the Bank Administration Institute. Other speakers include
Don Thoren, consultant, counselor, strategist for change, and Lance Marston,
director of land use and water planning, U. S. Department of the Interior.
The golf tournament and fishing derby will be held on Wednesday. A golf
tournament for the ladies will be held on Thursday.
Serving with Mr. Miracle as officers of WBA this year were first vice presi
dent, Harmon H. Watt, president, First National Bank, Riverton, and second
vice president Kenneth C. Naramore, president, Stockmen’s Bank, Gillette. M.
Clare Mundell, Laramie, is executive director of WBA.
The convention program follows.
Wednesday, June 11
A.M.
8
9:30

K. C. NARAM ORE
2nd V.P.

P.M.
6
7:30

Annual Fishing Derby. Co-chairman: Howard Baker, The Jackson State
Bank, and Dwight Bonham, state examiner, Cheyenne.
Annual Golf Tournament. Co-Chairmen: Lloyd Fordyce, First National
Bank. Casper, and John Edmiston, Security National Bank, Denver,
Colo.'
Social Hour.
Indoor Picnic followed by dancing. The six-piece Raemax Band will
play from 9 p.m. to midnight.
Thursday, June 12

A.M.
9:30

R. E, ADKINS

P.M.
1:30
6
7:30

First General Session, Explorer’s Room, Jackson Lake Lodge.
Call to order—MBA President Robert W. Miracle presiding.
Pledge of Allegiance.
Invocation—Father Dan Kenney, S. J., Our Lady of the Mountain
Church, Jackson.
Free time
Social Hour.
Banquet. Golf and fishing prizes will be awarded with entertainment and
dancing following. The Pearle Rae Show, featuring singer Pearle Rae
with Comedian Owen Hester. Dance music by the Raemax Band.
Friday, June 13

A.M.
8

9:30

P, P. B R O W N IN G

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Federal Reserve Bank of St. Louis

PEEPS (past presidents) Breakfast, Conference Room 2 or 3.
Second General Session, Explorer’s Room, Jackson Lake Lodge.
Call to order. Presiding—Harmon H. Watt, WBA first vice president.
“Creating a Motivational Climate”— Don Thoren, consultant, counselor,
strategist for change, Tempe, Ariz.
Address— Lance Marston, director, Office of Land Use and Water
Planning, U. S. Department of Interior, Washington D. C.
AIB—Anniversary Message.
Northw estern

Banker, June

1975

Wyoming News

WBA Convention Program . . .

Joins Casper Bank
Gary N. Boyer has joined the
Wyoming National Bank of Casper as
Report of the executive council of the American Bankers Association__
a s s i s t a n t vice
Robert L. Ferril, president, Bank of Commerce, Sheridan, and mem
president in the
ber of the governing council of ABA.
real estate loan
Adjournment
department, a ceording
to R. W.
NOON Luncheon—new executive committee and committee chairmen hosted by
M i r a c l e , bank
the new president of WBA.
president.
Mr . B o y e r
comes to Casper
from G r e e l e y ,
Colo., where he
G. N. BOYER
was manager of
the real estate department of the Gree
ley National Bank. He began his bank
ing career with the Minnequa Bank in
Pueblo, Colo.

W Y O M IN G
itdme
I W YOMING NATIONAL BANK

.1U: 3 G

Paul A. Christensen
Vice-President
Correspondent Banking Division

Serving accounts, large and small,
is our business. We are anxious to
talk or correspond with banks,
corporations or individuals to assist
in any investment or trust matter.

The W yom ing National Bank
W

Casper, W yom ing
Member Federal Deposit Insurance Corporation

G re e tin g s to fe llo w m e m b e r s a n d a sso cia tes o f th e M on tan a
B a n k ers A sso c ia tio n ; be seein g y o u a t Jack so n !
O u r c o n g r a t u l a t i o n s to t h e “ O f f i c ia l F a m i l y ” f o r p l a n n i n g
a n e x c e lle n t p r o g r a m .

^ a iitfu d S a n k
OUNOIVI, MONTANA
G le n d iv e ’s FAM ILY B a n k ”
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Federal Reserve Bank of St. Louis

1975

Rawlins Bank Names
New Director
Attorney John A. MacPherson has
been elected to the board of directors
of the First National Bank in Rawlins
replacing C. A. (Bud) Brimmer who
recently resigned. Mr. Brimmer was
nominated for the post of U. S. District
judge in Wyoming by Sen. Cliff Han
sen.
Mr. MacPherson is a partner in
Brimmer, MacPherson and Golden law
firm, town attorney for Hanna, and
general counsel for Arch Mineral Cor
poration, Energy Development Com
pany, both in Hanna and U. S. Steel
Corporation in Lander.
ABA Plans 2nd
EFT Conference
The second Payments System Policy
Conference, sponsored by the Ameri
can Bankers Association, will be held
September 7-9 at the Fairmont Hotel,
San Francisco.
“This meeting will provide senior
banking officers with a unique oppor
tunity to hear the views of leaders in
the field of electronic funds transfer
systems (EFTS) and discuss and de
bate current developments as they per
tain to our industry,” said Richard D.
Hill, chairman of the ABA Payments
System Policy Committee.
Mr. Hill, who is also chairman of
the board of The First National Bank
of Boston, stressed that, like the 1974
conference, the 1975 meeting will be
limited to about 500 top banking ex
ecutives.
“In the rapidly changing EFTS en
vironment in which we are all in
volved,” Mr. Hill said, “electronic
banking is becoming a reality with
surprising rapidity.”

Wyoming News

You Will See Them at the Annual
Wyoming Bankers Convention
HE following metropolitan bankers
T
and service and equipment deal
ers have indicated that they will be
attending the 67th annual convention
of the Wyoming Bankers Association
in Moran, June 11-13.
Chicago
First National Bank: John W. Ballantine, loan officer.
Denver
American National Bank: R. J.
Frank, president; Jack Panter, senior
vice president; Roger Reiling, vice
president, and Daniel Sullivan, as
sistant vice president.
Central Bank and Trust Company:
Don Echtermeyer, vice president, and
Bill Tumelty, correspondent bank of
ficer.
First National Bank: Charles H.
Krebs, assistant vice president.
United Bank of Denver: Warner A.
Knobe, vice president, and Robert
Dressel, correspondent bank officer.

Lincoln
First National Bank: Charles R.
Leffler, vice president, and Tom Ernst,
correspondent bank officer.

San Francisco
Bank of America: B. G. Framsted,
vice president, and David W. Maurer,
assistant cashier.
Wells Fargo Bank: Hans J. Lund,
vice president.

Bank Equipment and Other Firms
Bank Building Corporation: John
Boothby, consultant services manager,
New York
(western division).
First National City Bank: Stephen
First Mid America, Inc,: Gary W.
J. Karper, account officer.
Fenster (Omaha).
Manufacturers Hanover Trust Com
Mortgage Guaranty Insurance Cor
pany: Michael R. Brundage, assistant poration: Jeff Taylor, regional direcvice president.
tor/development.
Mosler Safe Company: Jerry Stites,
region manager, and Ron Mason and
Omaha
First National Bank: Don Ostrand, Chuck Myers, sales representatives.
United States Check Book Com
vice president.
The Omaha National Bank: Jack pany: Richard A. Dick, sales manager,
H. Babcock and Marvin G. Rohn, vice and Loren Anderson, salesman.
presidents, and John E. Martin, agri
cultural loan officer.
United States National Bank: Rob Promoted at Lusk
Charles Bruch has been promoted
ert Hasebroock, executive vice presi
dent; Jay Bordewick, Everett Brown, to assistant cashier and loan officer
Howand Nielsen, and Jim Protzman of Stockmans National Bank, Lusk, in
(BancNorthwest), vice presidents, and addition to his duties as agricultural
representative.
Dave Greer, BancNorthwest.

WELCOME
To the Annual Wyoming Bankers Con
vention June 11-13

at Jackson Lake

Lodge in Big, Wonderful Wyoming.

NATIONAL
BA N K and

TRUST COMPANY 1
OF WYOMING
1 I \ v u

M EM BER FD IC

A FU LL SER V IC E B A N K

V /V /lf llil ll

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Banker, June

1975

W yom ing

News

Bad Check Battle .
(Continued jrom page 27)
concentrates exclusively on teller train Bank of America, San Francisco, be
ing in robbery and check cashing. Cost gan a merchants loss prevention clinic
is approximately $5 to $15 per person in 1961, according to Dave Brancoli,
depending on attendance, dates, loca public relations department. The pro
tions and add-ons.
gram is now dormant but officers are
In addition, banks are working with looking at the possibility of updating
retailers in relation to check cashing. it, he said.

DON’TB
When you need bank supplies . . .
Call Loren Anderson, Rapid City, S. D.
one of our experts in bank p rin tin g and
supplies, or . . .
Call US at U.S.

Mr. Brancoli called the clinic, which )
was used throughout California, the h v
“traveling road show.” A van, contain
ing 50-75 chairs, went to branches of >
Bank of America. Merchants were in
vited to hear about the dos and don’ts v
of check cashing. The film used at the
1
sessions was made available to other
banks throughout the country and Canada at cost.
“We always had a good turn-out,”
Mr. Brancoli said.
The Idaho Bankers Association also
;
meets with retailers.
“For some time, we have maintained ,
an interphase with the Retailers Asso
ciation in Idaho and meet periodically '
to exchange items on how to control
new checking accounts,” says Mr. Lea
vitt, “plus bankers coordinate with re
tail establishments and advise them on
the best methods of handling checks *
to eliminate bad accounts.”
A bank in Illinois recently spon
sored a fraud prevention clinic which was attended by nearly 100 merchants.
Fraud Clinic

Uniteti Stairs (’.heck Book Company
P.0. Box 3 6 4 4

Omaha, Nebraska 6 8 1 0 8

(40 2) 3 4 5 -3 1 6 2

The three-hour program, put on by
the Glenview State Bank, covered such
topics as proper check cashing proce
dures, fraudulent use of credit cards, x

S e e you a t the
W yom in g B ankers Convention

Chiles, H eider &Co., I nc.
MEMBER NEW YORK STOCK EXCHANGE, INC.
1300 WOODMEN TOWER
OMAHA, NEBRASKA 68102 ■ (402) 346-6677

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Federal Reserve Bank of St. Louis

1975

Wyoming News

{
(

proper

encashment procedures for
cheques, counterfeit money,
shoplifting and theft, protecting ad" vertisers against fraudulent competi
tors and the current level of check
fraud in the community and prosecur
tion of it. Speakers included repre
sentatives from the Glenview Police
Department, U. S. Secret Service,
security department of a major depart
ment store and the “Chicago Tribune.”
*
“The estimated annual loss to banks
k today because of fraudulent check
cashing has increased 100 per cent
over the estimated annual loss of just
10 years ago,” Roy L. Cox, bank
senior vice president, told the mer
chants. “In 1970, this same estimated
loss was almost eight times higher than
losses due to bank burglaries and hold
ups.”
He said Glenview State Bank has
► instituted some positive steps to pre
vent the cashing of fraudulent checks
“ at the bank by asking its customers to:
„
Try to go to a teller who knows you
each time you visit our office,
v
If you do go to a different teller, or
if she is a new employee and doesn’t
know you yet, be willing to show propA er identification. Or, ask another teller
who does know you to identify you.
When cashing any check — even
m travelers

those for “CASH,” please endorse the
check in the presence of the teller.
EFTS
As to more long term solutions to
the problems, most survey respondents
said that EFTS will be a firm deter
rent in the future because merchants
will be able to verify whether or not
the person has the money at the time
of the purchase. They suggested that
check guaranteed check cards were a
good answer for now.
Jerry Scarboro said the Colorado
Bankers Association did get a stiff bad
check bill passed but that it was
thrown out by the Colorado Supreme
Court because of the housewife who
will write a $50 bad check periodical
ly.
“That’s the problem,” he com
mented, “the fine line between those
who unknowingly write bad checks
and those who make a profession of
it.
“1 feel that if major retailers would
accept Bank Americard, Master
Charge or bank check guarantee cards,
it would go a long way toward solving
their bad check problem.
“EFTS will be the answer to the
whole problem,” he said, and “we’re
not that far away.” — End.

First of Casper

The “Hub”
of Banking
Wyoming
For cre d it collections and inform ation,
transit items, excess loans and all
correspondent services,
check First of Casper.

First National Bank
of Casper
Phone 307 235-4201

W e lc o m e to the W y o m in g B ankers C o n v e n tio n
at J ackso n Lake L o d g e , from
A Bank on the range where livestock and
energy development are compatible
where seldom is heard a discouraging word
except - - cattle prices are down
feed is up
taxes are up
Bureaucracy is up
but nothing that can’t be corrected

Bank, bank on the range
where energy is progress
and progress is energy
(provided the environmentalists will
let us get on with it)
where men are men
and women are women

“ Serving anyone and everyone since 1907”
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B a n k e r , Ju ne

1975

Montana Bankers Association
72nd Annual Convention
Jackson Lake Lodge
Moran, Wyo.
June 19-21

T. A, VASH US
P resid en t

J. T. CADBY
S ecre tary

A. F. W IN EGARDN ER
1st V.P.

DR. K. McFARLAND

L. RO N SO N

R. J. MORTHLAND

A. L. ATHERTON

I». S, NADLER

T -1 HE Montana Bankers Association will hold its 72nd annual convention at
Jackson Lake Lodge in Moran, Wyo., according to T. A. Vashus, presi
dent of the MBA.
Other officers serving with Mr. Vashus this year include first vice presi
dent, A1 F. Winegardner, president, First National Bank and Trust Company of
Billings and second vice president, Phil A. Yates, president of the Citizens Bank
of Montana, Havre. John T. Cadby, Helena, is executive manager of MBA.

A.M.
9:30

P.M.
7:00

Thursday, June 19
Golf Tournament, Jackson Hole Golf and Tennis Club.
Welcoming reception sponsored by the First National Bank & Trust
Company, Helena; Midland National Bank, Billings; First Metals
Bank & Trust Company, Butte, and First National Bank, Great Falls,
all members of the First Bank System.
Dinner followed by dancing to the Art Christiansen Trio from Plentywood, Mont.

Friday, June 20
Breakfast for 25-year Club.
Call to Order, T. A. Vashus, president of MBA and president, First
National Bank, Glendive.
Speaker—-Dr. Kenneth McFarland, lecturer and former city superin
tendent of schools in Topeka, Kan.
Speaker— Larry Ronson, senior vice president, First Hawaiian Bank,
and member of the bank’s division chairmen’s committee.
Speaker— Rex J. Morthland, 88th president of the ABA and currently
chairman, ABA governing council, and chairman and chief executive
officer, People’s Bank & Trust Company, Selma, Ala.
NOON MBA’s Retirement Trust Membership annual meeting and luncheon.
P.M.
Re:eption hosted by the Security Bank, NA, Billings.
Dinner followed by dance music and floor show provided by the “Many
Sounds of Nine,” from Moses Lake, Wash.
A.M.

A.M.

Saturday, June 21
Call to Order, President C. Vashus.
Speaker— A. Lee Atherton, Jr., vice president and manager, northwest
correspondent bank department, Seattle-First National Bank, will
speak on the Pacific Coast Banking School.
Speaker— Dr. Paul Nadler, professor of business administration at Rut
gers University and faculty member of the Stonier Graduate School
of Banking.
Speaker—Bob Brown, executive director of Tax Foundation Incorpo
rated.
Annual membership meeting. Officers will be elected.
Ladies Program
There will be a ladies luncheon Friday noon.

N o rthw estern

B an ke r, June

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Federal Reserve Bank of St. Louis

1975

M ontana News

You Will See Them at the Annual
Montana Bankers Convention
'T 'H E following metropolitan bankers
-*■ and service and equipment dealers
have indicated that they will be attend
ing the Montana Bankers Association’s
annual convention in Moran, June 1921 .

Chicago
Continental Illinois National Bank
& Trust Company: Leonard W. Busse,
vice president, and L. H. Haupt, III
(Terry), correspondent bank officer.
First National Bank: John W. Ballantine, loan officer.
The Northern Trust Company: John
N. Fix, vice president.
Denver
Central Bank and Trust Company:
Bill Tumelty, correspondent bank of
ficer.
First National Bank:
John H.
Nicholson, assistant correspondent
bank officer.
United Bank of Denver: Warner A.
Knobe, vice president, and Robert
Dressel, correspondent bank officer.
Minneapolis
First National Bank: Roland H.
Thuleen, executive vice president;
Donald Bergum and Kenneth A.
Wales, vice presidents; F. Wm. John
son, correspondent bank officer, and
Dennis Lind, bond representative.
Marquette National Bank: Gary B.
Wollan, senior vice president, and
Avery G. Fick, vice president.
Midland National Bank: Stanley J.
Peterson, vice president.
Northwestern National Bank: C.
Paul Lindholm, senior vice president,
and James Laird, correspondent bank
officer.
New York
First National City Bank: Joseph
H. Sanford, vice president, and
Stephen H. Paneyko, assistant vice
president.
Saint Paul
American National Bank & Trust
Company: Robert E. Sipple, senior
vice president, and James D. Oxenford, correspondent bank representa
tive.
First National Bank of St. Paul:
Andrew G. Sail, executive vice presi
dent, and Donald W. Buckman and
James T. Gowan, vice presidents.
San Francisco
Bank of America: Bob D. Harwell,

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Federal Reserve Bank of St. Louis

vice president, and Jerry G. Fair, as
sistant cashier.
Wells Fargo Bank: Hans J. I und,
vice president.
Seattle
Seattle-First National Bank: A. Lee
Atherton, vice president & manager —
NW correspondent bank department;
Samuel R. Noel, vice president — NW
correspondent bank department, and
Thomas P. Rook, correspondent bank
officer — NW correspondent bank
department.
Bank Equipment and Other Firms
Allied Safe & Vault Co., Inc.: Ter
rill E. Hunt, executive vice president,
and R. B. “Ronnie” Severson, director
of marketing.
Bank Building Corporation: John
Boothby, consultant services manager,
(western division).
Mortgage Guaranty insurance Cor
poration: Jay Caffero, regional director/development.
Mosier Safe Company: Jerry Stites,
region manager, and Ron Mason and
Chuck Myers, sales representatives.

Joins Powell Bank
Lloyd C. Snyder has joined the
American National Bank of Powell as
vice president and agricultural repre
sentative. He formerly was associated
with the First National Bank of Torrington.
First National, Billings,
Adds 3 Officers
Al Winegardner, president of the
First National Bank of Billings, has an
nounced the ad
dition of these
o f f i c e r s to the
bank’s loan de
partments.
James A. Fougeron joins the
bank as vice pres
ident and manager
of the commercial
loan department.
J. A. FOUGERON
An econom ics
graduate of the University of Minneso
ta, he has 11 years of experience with
Northwestern Bank Corporation affil
iates in several states.
Allen Crittenden and Tim Coughlon
have been named loan officers in the

commercial loan division. Mr. Critten
den has spent eight years in Billings
with two finance companies. Mr.
Coughlon, a graduate of the University
of South Dakota, joined the North
western Bank System in 1973.

Southside National Bank
Elects Vice President
Robert E. Bodin has been elected
vice president and senior commercial
lending officer of
the Southside Nat i o n a 1 Bank,
Missoula, to Earl
W. Johnson, pres
ident.
Educated in his
n a t i v e city of
C h i c a g o , Mr.
Bodin began his
banking career in
R. E. BODIN
1957 with the in
ternational banking department of the
First National Bank of Chicago. He
joined the First National Bank in
Bozeman, an affiliate of First Bank
System, in 1958 as a trainee and was
elected vice president and commercial
lending officer in 1968.

WE KNOW HOW TO HELP...

Northwestern
Bank
& Union T rust Co.
An Affiliate of Northwest Bancorporation

H elena, M o nta na 59601

B an co

We are always ready to assist Montana
Banks with our Correspondent Services

Ju st call us

W. B. Andrews, President
F. M. Gannon, Exec. V.P.
R. L. Samson, Vice President
It’ s easy to dial d ire c t— our num ber is

[406] 442-5050
Helena, Montana

N o rthw estern

B an ke r, June

1975

MIB Holds Convention, Elects Officers

SHOWN are (I. to r.): Gene Turnage, Montana Independent Bankers legal council,
Poison; Al Riegel, MIB exec, secy., & Charles Sweeney, pres., Bib Horn County S t,
Hardin, M o n t, and outgoing pres, of MIB, at the recent Montana Independent Bankers
Convention.

Glendive Bank Celebrates
Secretary Week
In conjunction with National Secre
tary Week, the First National Bank of
Glendive held a Secretary Apprecia

tion Day, according to T. A. Vashus,
president.
Members of the bank’s secretarial
staff hosted the affair for area secre
taries who were invited for an after-

NEWLY elected officers of the Montana
Independent Bankers for 1975-76 are
(I. to r.): pres.— Pat Kirby, pres., Basin
State, Stanford; 1st v.p.— Hank Lillejord,
pres., 1st Sec., Glendive; treas.— Marvin
Veis, chmn. & pres., Citizens St., Scobey;
2nd v.p.— Theo F. Bartschi, v.p., 1st St.,

noon of shoptalk, friendly chatter and
refreshments in the bank’s Matador
Room.

Tennis Tournament, Tumwater
Valley Racquet Club.
President’s Reception, Tyee
Courtyard followed by the
banquet in the Skokomish
Room.

Washington Bankers To Meet June 2 2 -2 4
r P HE seventy-ninth annual convention of the Washington Bankers As
sociation will be held June 22-24 at
the Tyee Motor
Inn, near the
state’s capitol city
of Olympia. Near
ly 400 delegates
and wives, includ
ing those from
other states and
also British Co
lumbia, are ex
pected to attend.
R. E. BANGERT
General c o n
vention chairman is Carl A. Hanson,
president of the Bank of Olympia.
P.M.

Sunday, June 22
Past Presidents reception, Gov
ernor’s Suite, Tyee.
First Nigh ter Reception, Tyee
Courtyard, followed by din
ner in the Skokomish Room.

Monday, June 23
A.M.
8:30 First Business Session. R. E.
Bangert, WBA president,
presiding.
Invocation: Rev. Father Wil
liam Treacy, pastor of the
N o r t h w e s t e r n B a n k e r , J un e

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Federal Reserve Bank of St. Louis

1975

Church of St. Michael in
Olympia.
Speakers: Economist Walter
Heller, former chairman of
the President’s Council of
Economic Advisors, now
with the University of Min
nesota, Minneapolis.
Patricia Weninger, president of
the National Association of
Bank Women and vice pres
ident, Fidelity Mutual Sav
ings Bank, Spokane.
J. Rex Duwe, American Bank
ers Association president
elect, and president and
chairman of The Farmers
State Bank, Lucas, Kan.
ABA annual Meeting and Elec
tion of Officers. Washing
ton’s vice president for ABA
J. C. Baillargeon will con
duct the meeting. He is
chairman of Seattle Trust
and Savings Bank.
WBA Election of Officers
Noon Ladies Luncheon, Greenwood
Inn.
P.M. Men’s annual Golf Tourna
ment, Olympia Country and
Golf Club.

Tuesday, June 24
A.M.
8:45

Second Business Session
Speakers: Richard L. Feltner,
assistant secretary for mar
keting and consumer affairs,
U.S. Department of Agricul
ture.
Panel including Rex Duwe
and: George W. Mitchell,
vice chairman of the Federal
Reserve System’s board of
governors; Leonard Weil,
president, M a n u fa c tu re rs
Bank, Los Angeles, and
Charles P. Haley, associate
professor of finance, Univer
sity of Washington. Modera
tor is Russ Schlosstein, WBA
executive manager.
Speaker: Representative Leon
ard A. Sawyer (D ), speak
er of the House of Representives, Washington State
Legislature.
Jim Cairns, Jr., senior vice

91
president, Peoples National
Bank of Washington, and
chairman of WBA’s EFTS
committee, will present a
film, “The Future in Your
Hand” dealing with EFT.
installation of Officers.
Speaker—New WBA President
Robert E. Polachek, presi
dent, Bank of Everett.

NW correspondent bank department,
and Duane R. Dier, correspondent
bank officer — NW correspondent
bank department.

Noon
P.M.

Ladies Luncheon.
Men’s Luncheon, Sun Valley
Golf Course.
Men’s Golf Tournament.
Ladies and Men’s Buddy Shoot
Tournament.
Ladies Bridge.
Gold Rush Days Costume
Party and Dancing.

San Francisco
Bank of America: Bob D. Harwell,
vice president, and Jerry G. Fair, as
sistant cashier.
Wells Fargo Bank: John L. Quirk,
Tuesday, June 17
assistant vice president.
A.M. Past President’s and Treasurer’s
Bank Equipment and Other Firms
Annual Breakfast.
You Will See Them at the
Allied Safe & Vault Co., Inc.: Ter
Ladies Golf Breakfast.
Washington Convention
rill E. Hunt, executive vice president;
HE following metropolitan bankers R. B. “Ronnie” Severson, director of
Second Business Session.
and service and equipment marketing; Franklin R. Flory, man
Ladies Golf Tournament.
dealers have indicated that they will ager (Seattle), and David M. Leach, Noon Men’s Luncheon, Sun Valley
be attending the annual convention of sales engineer.
Golf Course.
the Washington Bankers Association in
Bank Building Corporation: Paul P.M. Men’s Golf Tournament.
Ladies and Men’s Trap and
Olympia, June 22-24.
Taylor, consultant services manager
Skeet Tournaments.
(western division).
Chicago
Bridge and Cards.
Mortgage Guaranty Insurance Cor
First National Bank: R. Garth
Banquet and Dancing.
poration: Jay Caffero and Larry
Dunn, Jr., vice president, and John W.
Chestnut, regional directors/develop
Ballantine, loan officer.
ment.
SLT Warehouse Company: Bob You Will See Them at the
New York
Chemical Bank: Robert Sadler, as Brown.
Idaho Bankers Convention
sistant vice president, and H. Joseph
The following metropolitan bankers
Sweeney, assistant secretary.
Edmonds Bank To Open
and service and equipment dealers
First National City Bank: Stephen Two New Offices
have indicated that they will be attend
J. Karper, account officer.
American National Bank of Ed ing the 68th annual convention of the
Manufacturers Hanover Trust Com monds has received permission to es Idaho Bankers Association in Sun Val
pany: George A. Wrigley, assistant tablish two offices. One will be in the ley, June 18-21.
secretary.
vicinity of Highway 99 and the
Chicago
Broadway Cutoff in Snohomish Coun
Continental
Illinois National Bank
Portland
ty and the other will be in the vicinity and Trust Company: Garry J. Schem
United States National Bank of Ore
of the intersection of Highway 99 and ing, vice president.
gon: Dale B. Shadrick, assistant vice
176th Street Southwest in Snohomish
First National Bank: John W. Balpresident.
County.
latine, loan officer.
New York
Seattle
Chemical Bank: Malvern Hill, vice
Seattle-First National Bank: A. Lee Application Approved
The First National Bank of Stan- president.
Atherton, vice president & manager —
wood
has received permission to estab
First National City Bank: Joseph
NW correspondent department; Greg
ory S. Ball, national accounts officer lish an office in the northeast quad H. Sanford, vice president, and
— national department; Michael W. rant of Interstate Highway 5 and Edge- Stephen H. Paneyko, assistant vice
president.
Hatmaker, assistant vice president — comb Road in Snohomish County.
Manufacturers Hanover Trust Com
pany:
Nancy Nieman, assistant secre
Sun Valley is Site of IBA Convention
tary.
HE Idaho Bankers Association will Los Angeles; Carmen Capozzola, ex
Omaha
host its 68th annual convention in ecutive director, special activities,
The Omaha National Bank: Jack
American Bankers Association, Wash
Sun Valley June 15-18.
H. Babcock and Marvin G. Rohn, vice
ington, D.C.; John Mitchell, professor
Featured con- p p p
presidents, and Robert H. Hatch, agri
of economics, Boise State University,
vention speakers * *
cultural loan officer.
and Robert Mac Lean, president and
include:
Dr.
Portland
chief executive officer, Roberts Brother
Lawrence KreiUnited
States
National Bank of Ore
Food Company, Idaho Falls.
d e r,
executive
gon: Ralph B. Stratford, vice presi
v i c e president,
dent.
Sunday, June 15
C o n fe re n c e of
San Francisco
NoonRegistration,
Redwood
Room,
State Bank Su
Bank
of
America:
Bob D. Harwell,
4 P.M.
Lodge.
pervisors, Washvice
president,
and
Jerry
G. Fair, as
P.M. Barbecue, Trail Creek.
ington,
D.C.;
sistant
cashier.
Franklin StockD. J. M cKA Y
Wells Fargo Bank: Hans J. Lund,
Monday, June 16
bridge, vice chair
vice
president.
man, Security Pacific National Bank, A.M. First Business Session.

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Federal Reserve Bank of St. Louis

Northw estern

B a n k e r, June

1975

92
Seattle

Seattle-First National Bank: Samuel
R. Noel, vice president — NW cor
respondent bank department, and
Thomas P. Rook, correspondent bank
officer — NW correspondent bank
department.
Bank Equipment and Other Firms
Allied Safe & Vault Co., Inc.: R. A.
Hunt, president, and Terrill E. Hunt,
executive vice president.
Bank Building Corporation: John
Boothby, consultant services manager
(western division).
Mortgage Guaranty Insurance Cor
poration: Jay Caferro and George Sievers,
regional
directors/development.

Idaho Bank & Trust
Announcements
Eldon Crockett, who has been as
sistant cashier at Idaho Bank & Trust
Co., Pocatello, for the past two years,
has been named comptroller of the
bank’s statewide system. Also an
nounced was the promotion of Mary
Pat Brower to assistant auditor.

In addition, the bank recently
opened its addition to the bank’s
Kooskia office.

Opens New Office
The Tdaho First National Bank of
Boise has opened its new office at
2730 Airport Way in Boise.
To Establish Office
In Dubois
Security State Bank in Mud Lake
has received permission to establish an
office in Dubois.

J. J. BALLES

8
9

Application Approved
An application by Idaho Bank and
Trust Company, Pocatello, to establish
an office at 3149 North Cole Road in
Boise, has been approved.
Idaho Bank Promotion
Michael M. Mooney, who has been
acting manager of the Idaho Bank &
Trust Co.’s East Center office in Poca
tello since early February, has been
named manager.

9:30
9:45
10:15
10:30
C. H. SW EN SO N

F. G . EBERHARD

D. TAGGART

R. R. FICHTEL

Utah Bankers To Meet in Sun Valley, Idaho
H P HE Utah Bankers Association will
hold its annual convention in Sun
Valley, Idaho June 19-21.
The program follows
Wednesday, .June 18
P.M.

2-6

Registration
Correspondent bank parties in
the evening
Thursday, June 19

A.M.
7
8:30
8:45
9

Registration
Mens Golf Tournament— Sun
Valley Golf Course, Shot Gun
Start.
Tennis
Tournament— Sun
Valley Courts.
Trap Shoot— Sun Valley Trap
Club, north of golf course.

N a rth w este rn B a n k er, Ju n e

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Federal Reserve Bank of St. Louis

1975

Ladies Golf Tournament—
Elk Horn Golf Course.
10:30 Sun Valley Area Tour—
Warm Spring, Elk Horn,
Hemingway Memorial.
NOON Ladies Golf Luncheon—Elk
Horn.
NOON Mixed
Luncheon— Lodge
Patio.
P.M.
5:30
Registration Closes.
5:30
Trail Creek Barbecue— Buses
Leave.
6:30
Barbecue Entertainment by
Sun Valley Trio.
Friday, June 20
A.M.
7:30- Registration.
8
Speaker Breakfast.

10:45

9:30

11:30
P.M.
12:30

7:30
9:30

J. R. DUWE

Past Presidents’ Breakfast.
First Business Session—Opera
House.
Call to order: Calvin H. Swen
son, president, UBA.
Invocation.
President’s Welcome Report:
Calvin H. Swenson, presi
dent, State Bank of Lehi.
Executive Manager’s Report:
Fred G. Eberhard, Salt
Lake Clearing House Asso
ciation.
Report of the nominating com
mittee.
U. S. Savings Bonds Award
Presentation: Kathleen Meikle, state director, U. S.
Savings Bonds Division,
U.S. Treasury Dept.
Address: Rudolph R. Fichtel,
director, American Institute
of Banking.
ABA Film: “Face of the Fu
ture.”
Refreshment Break: Opera
House Lawn.
Address: Doris Taggart, re
gional vice president of the
National Association of
Bank Women.
Address: John J. Balles, presi
dent, 12th District of the
Federal Reserve Bank.
Prize drawing and meeting ad
journment.
Ladies Luncheon—Limelight
Room. Entertainment by
Latter Day Sounds.
Afternoon is free.
Banquet. Entertainment by
Alice Hepworth, Janet Todd
and Bernel Barrett.
Dancing to Sun Valley Four.
Saturday, June 21

A.M.
8
9

Speakers Breakfast.
Meeting: Utah section of ABA
to elect member of nomin
ating committee and alter-

93
nate to serve at the 1975
Convention.
Committee Reports: Resolu
tions, Audit, Election.
9:30 Address: Rex Duwe, president
elect of the ABA.
10:15 Refreshment Break.
10:30 Address: J. N. (Chris) Chris
tianson. professional people
builder.
1 1:30 Installation of new officers.
Prize Drawing.
Presentation to past president.
NOON Convention Adjournment.

You Will See Them at the
Utah Bankers Convention
The following metropolitan bankers
and service and equipment dealers
have indicated that they will be at
tending the annual convention of the
Utah Bankers Association in Sun Val
ley, June 18-21.
Chicago

Continental Illinois National Bank
and Trust Company: G. R. Prince
(Rick), correspondent bank officer.
First National Bank: Robert L.
Taubenheim, loan officer.
New York
First National City Bank: Joseph
H. Sanford, vice president, and Steph
en H. Paneyko, assistant vice presi
dent.
Portland
United States National Bank of Ore
gon: Ralph B. Stratford, vice presi
dent.
San Francisco
Bank of America: Bob D. Harwell,
vice president, and Jerry G. Fair, as
sistant cashier.
Wells Fargo Bank: Robert J. Kretz,
assistant vice president.
Bank Equipment and
Other Firms
Bank Building Corporation: John
Boothby, consultant services manager
(western division).
Mortgage Guaranty Insurance Cor
poration: Sid Smith, regional direetor/development.

Zions Receives Awards
Zions First National Bank, Salt
Lake City, was the recipient of three
advertising awards from the Utah
Advertising Federation for excellence
of its 1974 advertising. The bank also
received two other awards for ads in
consumer magazines.
Roy W. Simmons is president of the
bank.,

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Federal Reserve Bank of St. Louis

Top Level Changes at
First Security Corp.
Major top
level
management
changes have been announced by First
Security Corporation, Salt Lake City.
Marriner S. Eccles, chairman of
the holding com
pany since 1952,
has been elected
to the newly-cre
ated office of hon
orary chairman.
George S. Eccles,
since 1945 presi
dent and chief ex
ecutive officer, has
been elected chairman, continuing as
chief executive officer. Spencer F. Ec
cles, 40, who has served as executive
vice president since 1973, has been
elected president.
Marriner Eccles was the corpora
tion’s principal organizer in 1928 and
became its first president. He was
called to Washington, D. C., in 1934

S. F. ECCLES

G. A. ECCLES

where he embarked in a career in gov
ernment spanning 17 years. He was
architect of both the Federal Housing
Authority and the Banking Act of
1935 and was appointed governor of
the Federal Reserve System and desig
nated chairman by President Roose
velt.
George Eccles also is chairman of
the company’s executive committee.
He has been active in World Bank
Meetings and International Monetary
Conference. Spencer Eccles also is a
member of the company’s executive
committee.

Nevada Bankers to Meet at Lake Tahoe
ENIOR banking officers from ev
S
ery bank in Nevada will gather on
the South Shore of Lake Tahoe the
first weekend in
June for the 56th
a nnua l conven
tion of the Neva
da Bankers Asso
ciation. The June
8-10 session at
the Sahara-Tahoc
H o t e l w i l l be
called to order at
Stateline by the UNO DEL GRANDE
gavel of associa
tion president Lino Del Grande, senior
vice president and manager of the
Reno Main Office of First National
Bank.
Convention chairman is Wayne N.
Condon, senior vice president of Ne
vada National Bank and also from
Reno, while vice chairman is Las Ve
gan Richard A. Carlson, vice president
and manager of the Maryland Park
way Office of Nevada State Bank.
Registration for the convention is
scheduled Sunday afternoon, with busi
ness sessions due Monday and Tues
day mornings. Monday afternoon has
been set aside for the annual golf tour
nament for association members and
guests and adjournment is scheduled
for early Tuesday afternoon, following
a business luncheon.
Nevada Gov. Mike O’Callaghan will

welcome delegates Monday (June 8)
at the first session. Featured speaker
later that morning will be James E.
Smith, U.S. comptroller of the curren
cy from Washington, D.C.
Tuesday’s speakers will be Louis B.
Lundborg, former chairman and cur
rently a director of Bank of America,
and Dr. Donald Sauer of the Graduate
School of Business at Indiana Univer
sity.
Other key personnel for the conven
tion include: Jordan J. Crouch of Re
no, executive manager of the NBA; Pe
ter J. Mariluch, vice president of Pio
neer Citizens Bank in Reno, registra
tion chairman; James A. Koch, vice
president and manager of the South
Lake Tahoe Office of First National
Bank, entertainment and arrangements
chairman.
Also, William C. Oexle, vice presi
dent, Security National Bank in Reno,
awards chairman; Thomas Kavanaugh,
senior vice president of Valley Bank
in Reno, transportation chairman; Da
vid Funk, assistant vice president and
manager of the Moana Office of Pio
neer Citizens Bank, golf and tennis
chairman; Shirley Fewell, assistant sec
retary to the board of directors of Ne
vada National Bank, women’s com
mittee, and David M. Quinn, vice pres
ident and head of marketing and ad
vertising for First National Bank, pub
licity.
Northw estern

B a n k e r, June

1975

W E’V E GOTCHA COVERED!
MONTANA

NORTH DAKOTA

SOUTH DAKOTA

Howard Nielsen

MINNESOTA

Correspondent
Banking Officer
Larry Hansen _

Correspondent
Banking Officer

WYOMING

NEBRASKA

John McCune

'Correspondent
Banking Officer

IOWA

John Lewis

Correspondent
Banking Officer

CO LO RA D O
MISSOURI
KAN SAS

Lee Bachand

Correspondent Data
Processing Officer

Bob Brown

Bank
Investment Officer

John Pope

Master Charge
Marketing Officer

a
"

inks \

X if

Everett Brown

Jay Bordewick

Agricultural
Credit Officer

Manager, Correspondent
Banking Division

H e r e ’s y o u r U.S. N a tio n a l B a n k team th a t s e rv ic e s
o v e r 3 0 0 c o r r e s p o n d e n t b an ks in 10 states. T h e y are
in r e g u la r c o n ta c t w ith each c o r r e s p o n d e n t b a n k by
p h o n e and in th e fie ld . T he “ t e a m ’’ p ro v id e s i n f o r m a
tion, re se a rc h , c o n s u lta tio n and a d v ic e to b a n k e rs
and h a n d le s sp e c ia l p ro je c ts and p ro b le m s . N e e d
s o m e h elp? If yo u live in N e b ra ska , call th e “ t e a m ”
to ll- fr e e 8 0 0 - 6 4 2 -9 9 1 7 . If you live in a s u r r o u n d in g
state, call to ll- fr e e 8 0 0 -2 2 8 -9 5 1 1.

U Na t io n a l
BANK
OMAHA
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95
Executive Council
Previously, the executive council
was made up of one representative
from each of the six NBA groups and
five representatives from Omaha and
Lincoln banks, the latter generally
from the five major correspondent
banks in those two cities. Executive
council members were elected for
three-year terms. Under the new by
laws, each group has two representa
tives— one elected for a three-year
term and one elected for a one-year
term. In Omaha and Lincoln the major
banks with more than $200 million
assets will have one bank executive
from each city elected to a three-year
term and one executive elected to a
one-year term.
The new executive council, consist
ing of the president, vice president,
executive manager-treasurer, 13 new
ly-elected council members, six hold
over council members, and the two
immediate past presidents, are listed
GUIDING the Nebraska Bankers A sso cia tio n during the conning year w ill be (le ft to right):
in the accompanying roster.
Robert Harris, exec, m g r.-tre a s ., L in co ln ; James I. Black, pres., Cones State Bank,
Pierce, v.p. and president-elect; Robert E. Burkley, chm n. & pres., F irst N atl., Fairbury,
The 78th convention was the first
president, and Richard E. Adkins, pres., O sm ond State, retiring president.
one presented under the direction of
Robert E. Harris, executive-managertreasurer of the NBA, who joined the
Bob Burkley Heads Nebraska Association
staff late last year. He was compli
By BEN HALLER, JR. mented by President Adkins for the
Editor
quality of the program and between
the two men they started each session
OBERT E. Burkley, chairman and dure that also designates the vice at the appointed hour and concluded
president of the First National president as president-elect. Mr. Black each session ahead of time.
Bank in Fairbury, was elected presi thus will automatically succeed Mr.
Energy Discussion
dent of the Nebraska Bankers Associa Burkley at the 1976 convention, at
An
interesting
facet of this year’s
tion at the NBA’s 78th annual con which time only a vice president and
program
was
a
discussion
of the energy
president-elect
will
be
selected.
vention held last month at the Hilton
This procedure was part of a revi problem facing the United States and
Hotel in Omaha. He succeeds Richard
E. Adkins, president of the Osmond sion in the constitution and by-laws the world. Its personal relationship to
State Bank, Osmond. This was the best presented recently by mail to the mem midwest farms, businesses and homes
attended Nebraska convention in his bership after extensive study, and ap was approached from three different
tory, with approximately 1,150 regis proved unanimously at the convention viewpoints by a U. S. government
business session. A key part of the by spokesman, an oil association execu
trations.
James I. Black, president of the laws changes expands the executive tive and a Saudi Arabian oil firm
Cones State Bank, Pierce, was elected council to give it more outstate repre executive.
Dr. Samuel J. Tuthill, recently of
sentatives, and at the same time assur
vice president of the NBA.
the
University of Iowa staff in Iowa
The unanimous election of both men ing council representation from subur
City,
and now a top advisor in Presiban
banks
in
Omaha
and
Lincoln.
took place under a new voting proce

EXECU TIVE COUNCIL
The Executive C ouncil of the Nebraska Bankers A ssociation previously was
made up of one representative from each of the six groups and five representatives
of Omaha and Lincoln banks, plus the tw o im m ediate past presidents of the NBA.
The new by-law s provide fo r tw o representatives from each group, plus tw o large
bank representatives ($200 m illio n assets or more) from both Omaha and Lincoln,
tw o sm aller bank representatives from Omaha and one sm aller bank representative
from Lin co ln. Newly-elected to the Executive C ouncil were:

GROUP
V icto r L. M ichel, pres.. Henderson State Bank, 1 year ............................................. 1
Henry Gramann, Jr., pres., Adams State Bank, 3 ye ars.............................................. 1
Lester E. Souba, chm n., David C ity Bank, 3 y e a rs .....................................................2
Don G. Johnson, pres., Farmers N ational, Pilger, 3 y e a r s ...................................... 3
John E. Glandt, pres., National Bank of N eligh, 1 y e a r ............................................ 3
LeeC labaugh, pres., Com m ercial Bank, N elson, 3 y e a rs ......................................... 4
Keith W haley, exec, v.p., Farmers State Bank, Sargent, 3 y e a r s ............................ 5

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Dale Stine, pres., N orth Loup Valley Bank, 1 y e a r ........................................
W illiam S. O lson, exec, v.p., Nebraska State Bank, Oshkosh, 3 years . . .
Theodore King, pres., S ioux National Bank, H arrison, 1 year ...................
Kerm it Hansen, pres., U. S. N ational, 3 y e a r s ...............................................
Perry Francis, pres., Southwest Bank, 3 y e a rs ...............................................
Karl D ickinson, pres., Gateway Bank, 3 y e a rs .................................................

. . . .5
. . . .6
. . . .6
. Omaha
Omaha
Lincoln

Rem aining on the Executive C ouncil u n til year designated are:

GROUP
Lee G allatin, pres., State Bank of Benkelm an, 1976 ....................................
M ikeYanney, exec, v.p., Omaha N ational, 1976 ..........................................
Burnham Yates, chm n., 1st N ational, 1976 .....................................................
James Lutes, pres., S cribner Bank, 1977.........................................................
Carl Brady, pres., Douglas C ounty Bank, 1977...............................................
Paul Amen, chm n., National Bank of Commerce, 1977 ..............................

___ 4
.Omaha
. Lincoln
. . . .2
.Omaha
.L inco ln

The tw o im m ediate past presidents serving on the council are F. W. Jackman,
chm n., Farmers N ational, Grant, until 1976, and Richard Adkins, pres., Osmond
State, u n til 1977.
N o rthw estern

B an ker, June

1975

Nebraska Ne ws

PLAQUES were presented to several men fo r special service. Pres. Adkins (at podium ) is
presenting a 50-Year Banker plaque to Henry E. Ley, pres., State N a tl., Wayne, for 50
years of banking in Nebraska. Mr. Ley retired several m onths ago as Nebraska director of
banking, a post he held several years. New NBA Pres. Burkley (left) watches
proceedings, w hich included presentation of plaques to the three men shown upon
com p le tion of three-year term s on the executive co u n cil. They are (from left): Paul M.
Hefti, pres. & chm n ., Guardian State, A llian ce; Dale E. Walkenhorst, pres., 1st N a tl.'
North Platte, and Marion C. Bonham, pres., 1st N atl., York. Two others, not pictured,
received s im ila r plaques— James I. Black, pres., Cones State, Pierce, and Phil Giltner
pres., 1st N a tl., Omaha.

dent Ford’s energy committee, dis
cussed “Energy Prospects for the Mid
west.” He appealed to all bankers to
keep abreast of events in the energy
programs, especially in the natural gas
field, because new ideas and methods
will require financing by knowledge
able banking executives. He thinks an
early step to be considered is elimina
tion of well-head price controls. Dr.
Tuthill believes in proceeding slowly
at this time in making binding, long
term policy decisions, but stresses the
need for at least voluntary curtailment
of energy usage in all ways practical
for private and public outlets. He op
poses having the government set up a
production oil and gas company, as
has been proposed in some sources.
Dr. Tuthill said “I look for agriculture
to receive high priority, but this doesn’t
mean that midwest farmers can ex
haust their supplies willy nilly. There
will be finite supplies and conservation
will be implied in regulations.” In re
sponse to a question, Dr. Tuthill said
we are 75 years away from production
of electricity from solar energy.
Yousef Alireza, manager for project
evaluation of Petromin, general petro
leum and mineral organization at Ri
yadh, Saudi Arabia, gave an interest
ing and most articulate presenta
tion of the Arabian side of the oil
picture. Mr. Alireza was with ITT in
Europe before joining Petromin. He
received his B.S. and M.S. degrees in
international finance from the Univer
sity of California at Berkeley after at
tending prep schools in England.
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1975

Two honored guests at the NBA annual
banquet were Bill and Joy Osterberg, both
of whom were presented g ifts on behalf of
the association by Pres. Adkins. Bill was
being honored fo r his 12 years o f service
w ith the NBA, which he joined in 1962 as
assistant secretary. He was executive
m anager from 1968 through 1974, when
he resigned to join I. W. W esley Jones in
surance con sulting firm , Omaha, which
serves Nebraska banks.

He attributed the four-fold increase
in food prices in the fall of 1973 as the
cause of the oil crisis that developed.
The bulk of the world’s known oil is
concentrated in the Mid-East, he
stated, and half of that is in Saudi
Arabia. He said oil will continue to
have political control so long as Israel
occupies land in three Arab nations
and so long as Palestinians are dis
placed.
Mr. Alireza said two conditions dic
tate any agreements reached between
Saudi Arabia and the United States
and western governments: “ 1. The
greater share of oil income is to go to
develop Saudi Arabia and the oil coun
tries into viable, producing countries,

Seated— Dick Adkins, retiring NBA presi
dent, and Yousef Alireza, speaker from
Saudi Arabia. S tan din g— William Riley,
Nebraksa d ire cto r of banking, and Robert
Burkley, new NBA president.

and for this we need the help of de
veloped nations. 2. We want protection
against the loss of value of our foreign
currency abroad.”
Mr. Alireza cited the billions of
dollars that need to be expended in his
nation and adjoining countries to de
velop better living conditions, schools
and viable business and farming enter- A
prises. Much of the money expenditure
to achieve these goals, he stated, will
flow through America in exchange
for equipment produced and expertise
needed from us to assist them in their
development plans. Thus, he added,
„
much of the benefit of oil prices will
redound to the benefit of the United "
States eventually.
Frank Ikard, president of the
American Petroleum Institute, Wash- ington, D. C., said the recent change
in percentage depletion allowance will
cost the oil industry about $1.75 bil
lion per year. He said the oil produc
ing business is the most regulated in
the nation. Mr. Ikard pointed out that
57 million people, about one-fourth of
the nation’s total, live in the midwest
„
and are 1.500 miles from the focal
point of the most important locale in
domestic oil circles today— the Con
tinental shelf 50 miles off the New
England shore line.
^
Mr. Ikard said it is imperative that
we step up our exploration of the outer
continental shelf, for this contains our
best possibility to become self-suffi
cient for oil. We used to import 8 to
9% of our oil needs, he said, but this
now is at a 37% level, making it risky
for this nation due to the possibility of
^
having our sources cut off at any time.
He reviewed the possibilities of oil dis- >•

Nebraska News

LEFT— Chuck Leffler, v.p.. 1 st Natl. Lincoln; Dick Wells, pres., State Bank of Bartley; John Burt, reg. adm. of natl. banks, Kansas City,
and Jack Moors, exec, v.p., 1st Natl. Lincoln. RIGHT— Frank W illiams, exec, v.p., and Mike Mullen, both with Robert E. Schweser
Company, Inc., Omaha; Dolores Graff: Larry Callen, v.p., 1st Natl., Ogallala; Peter Graff, pres., McCook Natl., and Bob Roh, v.p.,
Schweser Company.

LEFT — Ivy and Harold Matney, v.p.-cash., 1st Natl., W althill; Berniece and Richard Fritz, pres., First Natl., Kearney; Don Sabbann,

y exec, v.p., Dakota County State, South Sioux City, and his wife, Dolores, and Gary Stevenson, v.p., 1 st Natl., Sioux City. RIGHT— Ron
Ford, sales rep., and Richard Dick, v.p.-sales mgr., both with U. S. Check Book Co., Omaha and Gary A. Kudlacek, v.p.-cash., and
Stephen Rasmussen, pres., both with Grafton State.

■X*è

LEFT— Dave Johnson, pres., Commercial Natl. B&T, Grand Island, and Jim Oliver, pres. Ravenna Bank. CENTER — Don Echtermeyer,
v.p., Central B&T, Denver, and Bill Cook, Jr., pres., Beatrice Natl. RIGHT— Don Thomason, sr. v.p., United Bank of Kansas City, and
B. M. DeLay, pres., DeLay 1st Natl., Norfolk.

covery on land and off-shore in the
Gulf of Mexico, concluding that our
best bet is the outer continental shelf
development.
Problems hindering this develop
ment include forestalling tactics by
nearby coastal states. Mr. Ikard says

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all the people, including the 57 million
in the midwest where high energy us
age is recorded for agricultural, busi
ness and home purposes, should have
a voice in this development.
William Riley, director of the
Nebraska department of banking, Lin

coln, noted the almost impossible task
assigned his department of supervising
325 state banks, 21 s&ls, 10 industrial
banks, five trust companies, 66 finance
companies, 160 small loan companies,
30 coops and 73 credit unions with
only 29 examiners.
Northw estern

B a n k e r , J un e

Î9 7 5

Nebraska News

LEFT— Carl Schneider, chm n., Plattsmouth State, and Mrs. Schneider; Bruce Lauritzen, v.p., First Natl., Omaha; Gretchen and Phil
Giltner, pres., First Natl., Omaha, and Carol and John Dean, pres., Glenwood State. RIGHT— Bob Conrad, pres., Sidney Natl.; Ginny
and Don Ostrand, v.p., First Natl., Omaha; Joanne Goodwin, Sidney: Jack Canaday, exec, v.p., First Natl., Omaha, and his wife,
Diane, and LeBaron Goodwin, v.p., Sidney Natl.

LEFT— Elmo A. Carlson, pres., Deuel County State, Chappell; Gerald Lowrie, ABA speaker, Washington, D. C.; Wray Finney, Ft.
Cobb, Okla., livestock speaker, and Bill Olson, exec, v.p., Nebraska State, Oshkosh. RIGHT— Larry Carlson, sr. v.p., First Mid
America, Inc., Omaha: Richard Lauritsen, Toby Young and Ivar Andreasen, all with Federal Reserve, Omaha, and Jack Foley and Merrill
Johnson, both with First Mid America. Omaha.

LEFT— Wilbur Baack, sr. v.p., Natl. Bank of Commerce, Lincoln; Dale Stine, pres.. North Loup Valley Bank, North Loup; Ray Weilage,
a.v.p., Natl. Bank of Commerce, and Don Johnson, v.p., St. Paul Natl. RIGHT— Glenn Yaussi, chmn., NBC Co., Lincoln; Roy Yaley,
pres., Nebraska State, South Sioux City; Paul Abegglen, exec. v.p.-cash., Citizens Bank, Colum bus, and Herman Brockmeier, exec,
v.p.. Natl. Bank of Commerce, Lincoln.

To fulfill legal requirements for at
least one examination per year per in
stitution, Mr. Riley said his department
has opted for “a shorter examination
of the better-run institution and more
time and constructive effort with the
problem institution.” He said the mini
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Federal Reserve Bank of St. Louis

19 7 5

exam has been used extensively by
Indiana. He estimates the “miniexam” will require only half the time
of a regular exam. Mr. Riley stressed
that this is an experiment only, and
hopes that pride in requiring only a
“mini-exam” will stimulate good banks

to do even better. He cited one draw
back as the problem of problem in
stitutions having to pay more for more
extensive exams and this would gen
erally be from an institution that can
least afford the higher assessment.
Mr. Riley also noted that his depart-

first national people.

rale pelerson
Ralph Peterson knows his business. And yours. He understands the problems involved in
agricultural lending and financial management.
He should. Ralph spent 10 years with the Nebraska Department of Banking. And for the
past!4 years, Ralph's been sharing this expertise with our correspondent banks throughout
first national territory.
Put Ralph Peterson to work for your bank. Call him anytime Toll Free.

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In Nebraska call us Toll Free at 800-642-9907. From States adjacent to Nebraska call us Toll Free at 800-228-9533.

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N o rth w e s te rn B an ker, Jane

1975

100

Nebraska News

LEFT Jay Bordewick, v.p.. U. S. Natl., Omaha; Dan Huff, pres., Secur ty State, Oxford: Dick Brion. pres., Farmers State, Ewing, and
Larry Hansen, corr. bk. off., U. S. Natl. RIGHT— Howard Naelsen, v.p., U. S. Natl., Omaha; Lawrence Butzine, pres., and George O.
Sipp, dir., both with 1st Natl., Hay Springs, and Everett Brown, v.p., U. S. Natl.

ftk »,
it

■■i.h

; \V

LEFT— Don Murphy, pres., Northwestern Natl., Omaha Mary and Bill Biles, Jr., v.p. Citizens Natl., Wisner; Linda and Bill Biles, III,
v.p., Citizens Natl., Wisner, and Frank Sibert, sr. v.p Northwestern Natl., Omaha. RIGHT— Bill Graves, v.p., Northwestern Natl.,
rv
.
, , .
..
1
v . p . , H O I IIIVVCOICII
Omaha, and his wife, Kay; Ella and Fred Enevoldsen, chm n., Potter State, and their daughter, Jody, head teller at the bank.

LEFT— Tom Matthaidess, 2nd v.p., The Omaha Natl.; Harold Button, dist. mgr., Lawrence Systems, Des Moines: Marv Rohn,
Omaha N a tl. ^Pete Jeffrey, pres., American Natl., Omaha; Julius Mietzner, pres., State Bank of Hildreth, and Bob Larsen,’
Omaha Natl. RIGHT Ted Armbruster, pres., Nebraska Stale B&T, Broken Bow; Stanley J. Edwards, pres., Citizens Natl..
Jack Babcock, v.p., The Omaha Natl.; Eugene C. Coplen, cash., Bank of Hemingford; Duke Nolle, exec, v.p 1st Natl B&T
and J. O. Peck, chm n., 1st Natl. B&T, Columbus.

ment has sponsored LB562, which
could change the name to Department
of Banking and Finance. The bill
awaits legislative action. He said finan
cial. institutions in the state are alive
and well, and competing vigorously
with nationally chartered institutions.
N o rth w e s te rn B an ker, June

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Federal Reserve Bank of St. Louis

Ì9 7 S

He took exception to the exclusion of
s&ls from having access to terminals
under LB269 just passed. He feels
problems are being created by exclu
sion clauses in the legislation and
noted that he intends to assume juris
diction in regard to authority granted

v.p The
v.p,, The
St. Paul'
Lincoln

under LB269 for banks and will
assume jurisdiction over state s&l ac
tivity as well.

Banking Speakers
Clyde II. Fischer, District X execu
tive councilman for the American In-

101
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NEBRASKA

Dave Lebsack—
Lincoln

Bill Cummings—
Fremont

Roger Ormsby—
Grand Island

Claude Hanson—
North Platte

Pluginto NBC EDP
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National Bank of Commerce
13th and N Sts.
Lincoln, Nebraska
Member FD1C

T h e people p la c e

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B a n k e r , J un e

1975

102

Nebraska

News

L E F T -J im McBride, pres., 1st Natl., Aurora; Wes Bowen, sr. v.p., and Don Dworak, sr. v.p.-cash., Packers Natl., Omaha, and Jim
Kenner, exec, v.p., Thayer County Bank, Hebron. RIGHT— Gay Keller, pres., 1st Natl., Ogallala; Jim Foley, v.p., Chiles, Heider & Co.,
Omaha; Ivan Wozniak, exec, v.p., Gering Natl., and Fred Douglas, sales rep., Chiles, Heider, Omaha.

stitute of Banking, and controller for
the Northwestern National Bank in
Sioux Falls, gave a brief report on AIB
on the occasion of its 75th anniversary.
He said AIB is the largest adult educa
tion organization in the nation.
Peter L. Heintzeinian, executive vice
president, Bank of Valley, gave a re
port as chairman of the M. R. Morgan
Grant-in-Aid Fund. He stated that
$3,000 had been given by NBA to the
University of Nebraska College of
Business Administration and a similar
amount to the College of Agriculture.
The latter grant has been used for a
mini-computer place in Scottsbluff and
Alliance to store and transmit research
data on agricultural projects.
Cattle Outlook
Wray Finney, Ft. Cobb, Okla., first

vice president of the American Nation
al Cattlemen’s Association, discussed
current cattle markets and problems.
He reported a strong underpinning for
the market in the period through July,
and after that, not so strong an out
look. He warned cattlemen not to ex
pect a strong price market this fall.
He reported some contracting of fed
cattle, at least 60,000 mainly in Texas,
Oklahoma and Kansas at $42.50 and
ranging as high as $48, for May, June
and July delivery. If normal condi
tions prevail -— temperatures, rain,
feed — we will see better fed cattle
on grass, an improved grain crop and
a boosting of prices. He anticipates
prices not being as strong this fall be
cause of more tonnage and increased
feedlot placements.
Mr. Finney said that despite all the

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LINCOLN
LINCOLN, NEBRASKA
N o rthw estern

B a n k e r , J un e

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Federal Reserve Bank of St. Louis

1975

LIFE

natural adversities that can befall the
livestock industry, more harm can be
done to the cattle industry through the
stroke of a Washington pen by a
bureaucrat or from an uninformed
Congressman. He cited the number of
ag committee members in the House
and Senate who have no background
in ag areas, but represent city and
consumer interests only. He criticized
strongly the bill that would tell landowners how they can use their land,
stating this opens a whole new bureau
cracy with a list of new czars telling
livestock people how to run their
business. He said these consumeroriented interests look only to their
own price, and care not whether the
cattleman is losing money.
Final Speakers
Gerald M. Lowrie, executive direc
tor of the ABA’s government relations
division, Washington, D.C., gave a
brief report on the new makeup of
Congress and how various pieces of
legislation are viewed by ABA. He
warned that credit allocation will be
vigorously pursued by Rep. Reuss (D.,
Wis.), chairman of the House Bank-,
ing and Currency Committee, and Sen.
Proxmire (D., Wis.), chairman of the
Senate Banking Committee.
Two accomplished platform speak
ers capped off a successful convention.
Frank Blair, for 23 years a noted
member of the NBC-TV “Today”
show, gave a newsman’s view of the
need for adherence to the First
Amendment guaranteeing freedom of
the press — and thus freedom from
legislatures and courts trying to im
pinge on the freedom to report, o r,
harassment of the people who do the
job.
Oklahoma Lt. Gov. George Nigh

103

FIRST N A T IO N A L L IN C O L N
Box 81008 * Lin coln , NE 68501

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N orthw estern

B anker , Ju ne

1975

104

Nebraska News

was in his usual rare form, providing
humorous, philosophical bon mots
for an attentive audience.
In his concluding remarks to his fel
low bankers, retiring President Adkins
issued a strong plea for mature re
flection on the common goals of all
banking interests, urging them to offer
a united front that will bring the best
results for the industry and its ability
to continue to be the leaders in offering
financial service to the public. — End

Bicentennial Medallions
Selling at Brisk Pace
The sale of Nebraska Bicentennial offer the medallions on a non-risk
medallions is proceeding at a rapid basis, since unsold medallions will be
pace throughout the state, according returned to the manufacturer, Mr.
to W. E. Young, coordinator of the Young stated. The medallion itself is
state’s Bicentennial Medal Program. in raised relief, reflecting Nebraska’s
He reported last month that 340 of early heritage.
Nebraska’s 440 banks are participat
Among the limited edition medal
ing in this non-profit, community ser lions the one numbered 1776 was auc
vice program designed to raise funds tioned by the educational television
to assist Nebraska communities in station in Lincoln and was sold for a
their Bicentennial projects. Forty two $725 bid.
banks have already re-ordered medal
Mr. Young has retired from active
lion supplies, Mr. Young noted.
work at Cozad State Bank and Trust
Backed by the Nebraska Bankers Company, where he is still chairman.
Association as the NBA’s official Bi He said the funds generated from the
centennial activity, banks are able to sale of medallions through the banks

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C O R PO R ATE A N D M U N IC IP A L B O N D S • G O V E R N M E N T A G E N C IE S
S TO C KS • C O M M O D IT IE S • O P T IO N S • IN V E S T M E N T B A N K IN G
O m a h a * L in c o ln * C o lu m b u s • G ra n d Isla nd • H a s tin g s • A tla n tic
C e d a r R ap id s • Des M o in e s • F o rt D odge • S io u x C ity • Kansas C ity • C h ic a g o

N o rthw estern

B an ke r. June

197S

Named to Board
At Merriman
Frank Tolstedt has been elected to
the board of directors of the Anchor *
Bank, Merriman.
Mr. Tolstedt, executive vice presi
dent of the Gordon State Bank, also
is a director of the Bank of Valentine
and the Gordon bank. He started his
banking career at The Guardian State
Bank and Trust Company in Alliance '
and also has been associated with the
Bank of Valentine.
Joins Norfolk Bank
Tim V. Stern, president of the
Northwestern National Bank of Nor
folk, has announced that Dennis L. „
Meek has joined the bank’s staff as
assistant manager of the instalment
loan department. Previously he was a
loan officer for the Bank of Bellevue.
Mr. Meek is a 1970 graduate of
Morningside College with a degree
in business administration and eco- ^
nomics.

T ho ug h tfu l^-

Member New York Stock Exchange, Inc.
and other Principal Stock and Commodity Exchanges

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will make it possible to assist other
communities in earning recognition ^
similar to that gained already by other
Nebraska towns for special projects.
Nebraska earlier this year was ranked F
15th in the nation for its Bicentennial
achievements.
Sample projects include: Nebraska ,
City— Arbor Day programs in Ne
braska and the nation; Bancroft— John
Neihardt Foundation; Scottsbluff—
Educational TV filming of MexicanAmerican Festival; Gretna— Assis
tance with new regional 4-H Camp;
Red Cloud—Willa Cather Foundation.
Mr. Young has invited remaining
Nebraska banks to join at this time in
adopting the NBA’s Bicentennial Me
dallion program. He may be contacted
at P. O. Box 2554, Lincoln, Nebr.
68502, or through the Cozad State ,
Bank.

Construction Begins on
Bank of Madison
Construction has begun on the new
Bank of Madison building on the
southwest corner of Pearl and Third
Streets.
The 45 by 65 foot building will in
clude the city’s first drive-in facility.
Four teller windows and a sit-down
teller desk will be located inside.
The full basement will not be
finished but plans are to use it for a
meeting room.

105

Grand Island Bank
Announces Promotions
The Overland National Bank of
Grand Island has announced the fol
lowing promotions: Alberta Brym

Omaha News

Kermit Hansen, president of the
United States National Bank of
Omaha, has announced the election of
Wesley Hansen and William H. Seidel
as new board members.

^ Ê Ê tm Ê
W Ë M
w.

F. HANSEN

W . SEIDEL

Gertrude Foltz has been promoted to
auditor of the North Side Bank. She
joined the bank in 1953 in the loan de
partment and has held positions in all
departments of the bank.

Controlling Interest in
Stanton Bank Sold
Elmer Timson, president of The
First National Bank of Stanton, has
announced that he has sold his interest
in the bank to Val Beavers of Wahoo.
Mr. Beavers has taken over as bank
president. He had been vice president
and director of The First National
Bank of Wahoo.

A . BRYM

G. BRUMMUND

R. PLACZEK

L. McCOIG

to assistant cashier and manager of
The Overland Motor Bank North;
Gail Brummund, Bob Placzek and
Larry McCoig to loan officers in
the instalment loan department.

Mr. Hansen, North Platte rancher, J. E. Burke
Funeral services were held recently
. is president of Hansen Ranch Com
for
J. E. Burke, president of the Leaves North Platte Bank
pany. He has served as president of the
Kenneth W. Morris has announced
Nebraska Stock Growers Association, Farmers & Merchants Bank in
his resignation as assistant vice presi
the Nebraska Feeders and Breeders Imperial.
Mr. Burke, 89, joined the bank in dent of the McDonald State Bank of
Association and the Nebraska Sand
North Platte.
1903.
hills Cattle Association. Mr. Seidel is
vice president and secretary of the
^John Day Company in Omaha. He
. joined the firm in 1959 two years after
graduating from Iowa State Univer
sity in Ames, la., with a degree in en
gineering.
for alert
* * *
Controlling interest in the Ames
. Plaza Bank has been purchased from
the Brodkey family of Omaha by a
group of local businessmen headed by
Robert R. Kruger, chairman of the Mid
o u r SR. V .P ., S p e c ia l S e rv ic e s
City Bank. Mr. Kruger, who also has
> interest in six banks in Iowa, Misssouri
and Minnesota, has become chairman
replacing Edwin E. Brodkey. A new
president will be named to replace
Edward D. Brodkey, a cousin of Edwin
Brodkey.
National Bank
* * *
4
24th & 0 » 402/731-4900
John L. Bilby has been appointed to
Omaha, Nebr, 68107
the advisory board of the Douglas
Member FDIC
County Bank and Trust Company. Mr.
Bilby is vice president of the John L.
Bilby Construction Company.

CORRESPONDENT
BANK SERVICE,

call

Wes

PACKERS

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N o r t h w e s t e r n B a n k e r, June

J9 7 5

106

Nebraska

News

NEW
DEPOSITS

y.--;.;':

' '•. :7'; : '

'■
:

YOU

GAN
COUNT
ON
»
•

With the IRA and
Keough plans
from your
“ NEW ACCOUNT
O F FIC E R ”

A self-contained, easy to
use film strip unit with
recorded message that
clearly explains the IRA
and Keough Plans to your
custom ers in just 18 m in
utes each. Now you d o n ’t
need an expert to explain
the IRA or Keough plans.

!: '

iifes

Citizens Bank, Columbus, Plans Remodeling
T> EN B. McNair, chairman of the
-■-* board of The Citizens Bank &
Trust Company in Columbus, has an
nounced a major remodeling program
to start immediately.
Increasing its drive-up service capa
bilities three-fold, the project includes
complete remodeling of the bank in
terior as well as extensive exterior
work to create the newest and most
functional banking facility in the area.
The exterior will feature a 30 foot
high tower which will create a unique
appearance to the building. Increased
on-site parking and ample back-up
space for drive-up customers will be

accomplished by utilizing additional
land recently purchased.
Four private offices, a conference
room and a separate installment loan
area will be available for customer ser
vices. Modern in design, the interior
will be bright and open in appearance
and functional in design.
Completion is expected in 8 to 10
months barring unusual delays or
weather. The Kirk Gross Company of
Waterloo, la., has the single source
responsibility for the entire building
program and will, utilize local trades
where possible.

DON’T3

DEPCHSTTS.EVC.
When you need bank supplies . . .

L
Ar

Call Kent M ille r, N orth Platte, Nebr.,
one of our experts in bank p rin tin g and
supplies, or . . .

/
f \

l
DEVOTED TO YOUR BANK'S GROWTH

(402)4 2 3 -2 4 4 0
P.O. BOX 2554
LINCOLN, NEBRASKA
N o rth w e s te rn B an ke r, June

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Federal Reserve Bank of St. Louis

1975

Call US at U.S.

I nilcd Slates Check Book Company
P.O. Box 3 6 4 4

Omaha, Nebraska 6 8 1 0 8

(4 0 2 ) 3 4 5 -3 1 6 2

107

To be a going, growing airline,
you’ve got to keep doing things
better. That’s why you’ll like
what’s new on Ozark Air Lines.
More jets. More nonstop flights.
Colorful new interiors. More
legroom, more comfort, better
looks. Our meals? Ask an Ozark
passenger about our new
International Flair dinners. Or our
wine-and-cheese baskets. Fly
on Ozark Air Lines; you'll see.
We're going all out to give you the
kind of flight you're looking for. Which
is one good reason we're one of
America's fastest-growing airlines.

Call your travel agent or

OZARK
AIRLINES

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Northw estern

B an ke r, June

1975

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Federal Reserve Bank of St. Louis

f a

109

shown with the newly elected officers of Group 7. Group secy.
L. C. [Bud] Pike, pres., Farmers Savings, Grundy Center, is in
►the center, and Group chmn. Hugh Van Hosen, pres., Newton
Nat’l, is on the right.

JUDY Gunderson, Union-Whitten State, Union; Mary Anne
Blazek, Fidelity Savings, Marshalltown, & Shirley Naylor,
Commercial State, Marshalltown, took care of the registration at
the Group 7 meeting in Marshalltown.

EFTS Discussed at IBA Group Meetings
V? LECTRONIC Funds Transfer
-*-i Systems drew “top billing” at the
series of eight annual group meetings
held by the Iowa Bankers Association
u last month.
lllA President Jack L. Campbell ex
pressed concern over enabling legisla. tion for state chartered banks. (The
Comptroller authorized use of cus
tomer-bank communication terminals
^ for national banks on December 12,
1975).
► Mr. Campbell described the con
tinuing work by the Mid-America Pay
ments System in Omaha, and men
tioned that the MAPS study is to be
completed by June 30. Following the
> study, banks in Iowa and Nebraska
will proceed in making up cards, in
establishing volume projections, and
in projecting volumes for various types
of terminals.
IBA. Executive Vice President Neil
yMilner elaborated on President Camp
bell’s EFTS discussion, adding that
/- authorization forms for direct deposit
of Social Security checks will be sent

to Iowa banks in early August. Previ
ous to this time, forms from the Trea
sury will be sent to Iowa banks about
July 10. Full automation on Social Se
curity payments will be in force by
February or March, 1976. IBA plans
a series of three meetings on sign up
mechanics this month.
Current deficits by the Federal
government were given special atten
tion by Mr. Milner. He suggested that
Iowa bankers should use every effort
to see that Congressmen establish and
follow spending limits in view of the
fact that survival of our economy is at
stake. (He indicated that he was im
pressed with the apparent fiscal re
sponsibility of Iowa’s current Con
gressmen).
Classified Loans
Cecil Dunn, state superintendent of
banking, emphasized the fact that
more and more classified loans are
showing up through bad banking prac
tices. He advised banks to ask for
assistance from his office or from cor
respondent banks to assure proper

techniques. He indicated that further
studies on liquidity will be made by his
department. Concluding, he described
that good repoire between his office
and the FDIC, mentioning that Iowa
continues to be one of three states
where state examiners make examina
tions for the Federal Deposit Insur
ance Corporation.
Association activities were outlined
by President Campbell. He outlined
the plans for the various IBA banking
schools, mentioning that the Ag
Credit school and the School of Bank
ing enrollment is full for this year.
There will be no “Blue Ribbon“
school this year. Next year, it is
planned for the Broadmoor in Colo
rado Springs in early August. Mr.
Campbell also announced several
changes for the annual convention.
Headquarters for the 89th annual con
vention, October 26-29, will be at the
new Hilton Hotel, Des Moines. Also,
the customary theater party at Ames
will be Sunday evening, rather than on
Tuesday evening. — End

GROUP 8 — Steve Rothenberger, Continental Bk., Chicago; Jack Bock, First Natl., Iowa City; David Johnson, Maquoketa St. Bk., and
Clyde McIntyre, Deluxe Check Printers, Marshalltown. RIG HT— Bill Callahan, Sec. St. Tr. & Sav. Bk., Betttendorf; Floyd Amos, Central
St. Bk., Muscatine; Jim Hill, Harris Bk., Chicago, and Harold Button, Lawrence Systems, Des Moines.

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N o r t h w e s t e r n B an ker, June

1975

110

Iowa News

IBA Group Meeting Photos

GROUP 4— Chmn. Jack Thomson, Cresco Union Sav. Bk., and Secy. Tom Kerndt, Kerndt Bros. Sav. Bk., Lansing. RIGHT— Ron
Odefey, Key C ity Bk. Jim Smith, First Natl. Bk., and Don Leopold, American Tr., all of Dubuque, on the registration table.

GROUP 8 CH M N. Dick Ferguson, Tipton St. Bk., and Christy Armstrong, American Tr. & Sav. Bk., Dubuque. RIGHT— Neil Milner, Iowa
Bankers Assoc.; Oliver Hansen, Liberty Tr & Sav. Bk., Durant, and V. O. Figge, Davenport Bk. & Tr. Co.

LEFT— Shown at Gr 8 are Bob and Maxine Buenneke, Iowa Des Moines Natl. Bk., and Bernie Miller, Drovers Natl. Bk., Chicago,
RIGHT— Jim Figge, Davenport Bk., and IBA Pres. Jack Campbell, H u m bo ldt Tr. & Sav. Bk.

Digitized
N o rfor
t h wFRASER
e s t e r n B a n k e r , Jun e 19 75
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Federal Reserve Bank of St. Louis

ill

D u rin g th e last fe w y e a rs e s p e c ia lly , m o re and
m o re b a n ks h ave n a m e d us th e ir c o rre s p o n
d e n t bank.
A n d w e c o u ld n ’t be h a p p ie r.
B e c a u s e , y o u see, w e ’v e re a lly p re p a re d
o u rs e lv e s to be a m a jo r c o rre s p o n d e n t bank.
T ake th e a re as o f p ro o f o f d e p o s it . O r
tra n s it w o rk . O r c o lle c tio n o f c h e c k s .
O r c o m p u te r w o rk .
A n y c o rre s p o n d e n t b a n k in g p ro b le m y o u
h ave , w e can h a n d le .
So th a t’s w h y w e say — w e ’re h a p p y to be
n a m e d c o rre s p o n d e n t.

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Federal Reserve Bank of St. Louis

Northw estern

B an ke r, June

1975

112

Io w a News

More Group Meeting Photos

ARDEN E. Melcher, v.p., 1st Community B & T, Traer, and Larry
Arendt, e.v.p., Gibson Savings, at the Group 7 meeting.

WES Johson, v.p., Nytco Service, Des
Moines; Voldy Vanags, correspondent
representative, la.-Des Moines Nat’l., Des
Moines; Eddie A. W olf, v.p., Central Nat’l.
Bank, Des Moines.

SHOWN at the ilBA Group 6 Meeting at the Des Moines Golf &
Country Club are Ray Dieball, Wayne Hummer & Co., Chicago;
Vera Eilders & Ben G. Eilders, sr. v.p., Bankers Trust, Des
Moines.

PAUL L. DeRosear, v.p. & cash., Security St., Casey; Tom Hay, pres., Sec. St. and
Louise Hay.

— Our 55th Year—
THE CROP HAIL PROTECTION
FARMERS PREFER
STATEMENT of CO N D ITIO N At Close of Business December 3 1, I974
ASSETS
U. S. Government Bonds ........................................................$2,480,992.56
Other Bonds ................................................................................ 2,742,132.35
Stocks
................................ ...............................................
1 14,348.75
Accrued interest, etc...................
61,392.59
Cash in Bank and Home Office ..
................
247,699.04
Total Admitted Assets ......................................................$5,646,565.29
LIABILITIES
Reserve for Federal and State Taxes ....................................................... .
$ 140,634.47
Other Liabilities ...............................................................................................
359,475.19
Total Liabilities .
............................................................... ........
$ 500,109.66
Funds for Policyholders Protection ..............................................................
5,146,455.63
$5,646,565.29 $5,646,565.29
Securities carried at $392,486.93 in above Statement are deposited with public
authorities as required by law.

SQUARE DEAL INSURANCE
atCOMPANY

DES MOINES, IOWA 50308

f a lu t u a i
Digitized
N o rfor
t h wFRASER
e s te r n B an ke r, June
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Federal Reserve Bank of St. Louis

1975

Manchester Bank Adds
Loan Officer to Staff
Kevin C. Flanagan, a native of
Cedar Rapids, has joined the Farmers
and Merchants Savings Bank in Man- .
Chester as a loan officer.
For the past three years Mr. Flana
gan has been associated with the Fed
eral Reserve Bank of Boston, Mass.,
as a bank examiner.

Morningside State Bank
Elects 2 Directors
Vernon Stolen and Harold E.
Bruce have been elected to the board
of directors of the Morningside State
Bank of Sioux City, according to R ob-v
ert Knowler, chairman. Mr. Stolen is
vice president of Midwest Electric Co.
Mr. Bruce is vice president of the
bank. He has been with Morningside
for over nine years.

113

These Iowa Bankers work
with LaSalle in Chicago
to build business for Iowa banks
■ Why do L aS alle’s co rresp o n d en t balances con
tinue to climb?
Two big reasons are Cy Kirk and Max Roy, two
Iowa bankers who work with LaSalle correspondent
banks in Iowa. These life-long Hawkeyes know Iowa
and Iowa credits.
They keep our business growing by helping busi
ness grow in the correspondent banks they serve.
If you would like to find out what Cy Kirk or M ax

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Federal Reserve Bank of St. Louis

Roy can do for your bank and for Iowa, call them in
Chicago at (312) 443-2774. Or call at hom e; Cy Kirk
at (815) 398-9521; Max Roy at (319) 338-5224.

© LaSalle
...th e bank on the move
LaSalle National Bank, LaSalle Bank Building
135 S. LaSalle Street. Chicago, Illinois 60690 • Phone (312) 443-2774

N o rth w e s te rn B an ke r, June

1975

114

Iow a

News

4 8 5 Banks To Participate in IACHA
C 1 OUR hundred eighty-five Iowa
bankers have signed up to partici
pate in the Iowa Automated Clearing
House Association (IACHA), accord
ing to Larry R. Retherford, Central
National
Bank,
co-chairman
of
lACHA’s marketing and education
committee.
The association recently held a
series of 15 meetings with bankers
throughout the state to discuss IACHA
which is scheduled to begin operations
October 1 with automated deposits of
payrolls. About 900 to 1,000 bankers
attended the meetings.
The clearing house was “very well
received,” say Mr. Retherford. “It was
probably one of the better signups of
automated clearing houses across the
country.”
IACHA is a non-profit corporation
of Iowa banks formed to organize and
administer a statewide system of auto
mated funds transfer. It is a member
of the National Automated Clearing
House Association and will be part of
a nationwide network of automated
clearing house systems.

Spencer Bank Names
Vice President
John R. Bullard, president of Clay
County National Bank of Spencer, has
announced t h e
election of John
T. Wassenaar as
vice president for
loan administra
tion.
Mr. Wassenaar
brings 16 years of
banking experie n c e to Clay
County. He most
J. T. WASSENAAR

r e c e n t ly

w ag

y ic e

president and cashier of the First Na
tional Bank of Clarion where he super
vised bank operations and loans.

Hawkeye To Acquire
Lake Mills Bank
The Federal Reserve Board has ap
proved the acquisition of Farmers and
Merchants State Bank in Lake Mills
by Hawkeye Bancorporation, an Iowa
multibank holding company with
headquarters in Des Moines, accord
ing to Paul Dunlap, Hawkeye presi
dent.
Farmers and Merchants State,
headed by Dean Brackey, president,
has deposits of $11,600,000 and will
N o rthw estern

B an ke r, June

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Federal Reserve Bank of St. Louis

1975

Hawkeye Bancorporation. The acbecome the fifteenth member bank of
quisition is expected to become ef
fective by June 30, 1975.

To Present Seminar on
HR-10 Prototype Program
In response to interest by banks in
Iowa, a prototype H R -10 Program and
individual retirement accounts will be
available to any bank in Iowa, spon
sored by Iowa Bankers Insurance and
Services, Inc. A day-long seminar will
consist of an explanation of the Mas
ter HR-10 Program and how to use
it and the forms which will be neces
sary in its operation. Following are the
dates and places of the meetings:
June 3, Sheraton Inn, Des Moines
June 4, Ramada Inn, Waterloo
June 5, Highlander Inn, Iowa City
June 10, Atlantic Country Club,
Atlantic
J une 11, Harbor House, Storm
Lake.
The seminars are designed for bank
executives and other personnel who
will be presenting this type of program
to bank clients. Material to use in pro
moting the activity will be available.
Collin W. Fritz, banking consultant,
has agreed to conduct the seminars
which begin at 9 a.m. and adjourn at
4 p.m.
New Director of
Banks of Iowa
Pictured here is Ben Schwartz, new
director of Banks of Iowa, Cedar Rap
ids. His election
was announced in
the May i s s u e
of N o r t h w e s t
ern

a n k e r

a directorship
Midland.

in Archer,

Daniels,

Bi-Centennial Bonds On Sale
Banks across the nation are now
selling the new Bi-Centennial/Design
Series E Bond. In opening ceremonies
in Washington and other cities Presi
dent Ford and local officials launched
the Bond program’s observance of the
Bi-Centennial by purchasing these new
Bi-Centennial/Design Series E Sav
ings Bonds.

SHOWN with Gov. Ray (left) are David L.
Miller, pres., W. Des Moines State Bank;
Marvin R. Johnson, la. state Savings
Bonds dir., and Mr. Tone.

Iowa’s Governor Robert Ray used
the occasion to proclaim May 5-9 as
Minute Man Week, honoring the
Treasury Department’s program sym
bol, the patriotic citizen volunteer,
and recognizing the importance of
individual participation in the financial
affairs of the country.
Federal Reserve Banks have re
ceived supplies of bond stock in $25,
$50 and $100 denominations.

along with the
e l e c t i o n of C.
Bernard
Jacobs
and J o h n
F.
O’Neill. Mr. Ja\
cobs is chairman
of National City
B‘ E> SCHWARTZ
Bank, Minneapolis, and Mr. O’Neill is
the new president of the First National
Bank of Burlington.
Mr. Schwartz entered the business of
metal processing and trading in Mar
shalltown following service in World
War II. In addition to the main plant
in Marshalltown, he has plants in
Ottumwa, Des Moines, Denver, and
Chicago. His business interests include

TYPICAL of bank participation was the
bond sale to Dubuque’s Mayor C. Robert
Justman (center) by Marjorie Sonnenberg,
vault attendant, and William G. Kruse,
pres, of 1st Natl., Dubuque.

Iowa

Brenton Banks Progress
William H. Brenton, chairman,
Brenton Banks, Inc., Des Moines, re
ported at the annual meeting that the
company’s per cent of increased earn
ings was among the best of the lead
ing bank holding companies. Loans
gained 13.4% and
deposits
gained
12.7%. Net in
come totaled $2,551, 776 at the
year-end. Assets
gained 11.1 % and
the return on av
erage shareholder
equity was 14.6
percent.
D. I . NVGE'.

Mr. Brenton announced that David
L. Nagel, president of the Brenton
Bank and Trust Company, Urbandale,
was elected to the Brenton Banks. Inc.,
board.
Robert D. McKee, president of the
Dallas County State Bank, Adel, and

R. D. McKEE

J. R. THORNTON

Meet Ed, Gene, Wilma and Jim.

News

115

Jerry R. Thornton, marketing officer,
were elected officers of Brenton Banks.
All other officers and directors were
reelected.

First State, Chariton,
Holds Open House
First State Bank of Chariton re
cently held an open house to acquaint
the public with the bank’s recent re
modeling program. Tours and refresh
ments were provided.
The bank has completed its twoyear remodeling program which in
cludes a new elevator, directors room
and community room.

At your service.

Good business depends on good bankers.
That’s why the Banks and Bankers Division
at Security National Bank stays up-to-date on all
the services you might need.
But most important, we can give you the service
you need whenever you need it. That’s what
we’re here for. Phone: 712-277-6517

Security National Bank
6th & Pierce Street, Sioux City, Iowa

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1 9 75

116

Iow a

News

Management / Marketing . . .
(Continued from page 29)
"What we are saying is that no simple, one-step formula ex
ists for marketing success. The knowledgeable CEO real
izes that his bank must have both the right product and the
ability to take the product to market. Contrary to the
views of some, a marketing program is not just a clever ad
vertising campaign or a matter of sending all available per
sonnel to “beat the bushes” for new customers. Effective
marketing requires a number of elements . . . research,
communications, (internal and external), sales and public
relations activities . . . and a host of related assignments.
Innovative-Minded — The CEO who is not attuned to
the inevitability of change is headed for disaster. Both the
rate and intensity of change in the financial services area
will continue to accelerate. International finance, EFTS,
automated tellers . . . the entire range of services designed
for the future is destined to change dramatically the com
plexion of today’s banking. As someone said the other day,
“It’s innovate or vegetate!”
With these six desired qualities for the CEO and mar
keting director in the background, let me hasten to say that
I know you may be wondering just what they have to do
with the subject under discussion. Very little, maybe. But,
the fundamental point I have been trying to make is this:
The CEO and marketing director have to communicate
on the same wave length. I think they can do this better
when they understand each other’s values, beliefs and per
sonal philosophies.
If conflicts or problems exist in the area of individual
relationships, then they can hardly be overcome by avoid
ing use of the word “problem,” as some businesses are
prone to do. If “opportunities” truly are to be exploited,
the communications channel has to remain clear.
Let me conclude with several practical suggestions
about how I feel good communications can be maintained
between marketing director and CEO. Among these would
be:
Speaking plainly and openly. The CEO doesn’t need a
“yes” man. He is already insulated and buffered enough
from actuality. Although very few persons care to take un

Toy Nat’l, Sioux City,
Announces Changes
Gery M. Martin, realtor, has been
elected to the board of the Toy Nation
al Bank of Sioux City. He owns Gery
M. Martin Real Estate Company.
Kenneth C. Schatz has been elected
vice president and senior trust officer
and Marvin L. Clause has been elected
assistant vice president.

K. SCHATZ
N orthw estern

B a n k e r , Jun e

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

1975

comfortable news to the “boss,” the marketing director
must tell it like it is — or suffer the consequences in the>
long run. Likewise, when he is off base, the CEO needs to
level with him.. This saves a lot of wasted motion in the fi
nal analysis.
Faking time to communicate. As much as we may be
deluged with steady conferences and meetings in our’
banks, they oftentimes are necessary for clear communica-r
tions. When we feel a vacuum can be filled with regular
meetings between the CEO and marketing staff, agreement
on time and place are in order. One valuable collateral
benefit from this is that it forces us to prepare and organize
better.
Documenting in writing. Marketing plans and schedules
which seem simple to the marketing director can appear’
complex to the CEO, because of his limited time for re
viewing lengthy data and statistics. Verbal review of mar
keting strategy with the CEO can easily be lost in the day’s
pre-occupation with other pressing business. Write it
down. He’ll study the data fully as his schedule permit^
. . . and there’ll be far less confusion and misunderstand
ing.
Understanding and respecting each other’s views. I
think the probable source of greatest stress between the
CEO and marketing director stems from their separate
opinions regarding top priorities. The marketing directm;
is often very capable of “draining the swamp” but may not
be “up to his navel in alligators,” as the CEO finds himself*
most of the time.
I would, without hesitancy, encourage the marketing di
rector to defend his views and recommendations when com
municating with the CEO. No self-respecting marketing
man wants to be intimidated by his “boss.” There are times
when the CEO plays the role of devil’s advocate with ac-^
complished skills and purpose. It’s his job to test judge
ment . . . and to temper conviction with a measure of rea—•
sonable doubt. If the marketing director isn’t prepared to
defend his recommendation before the CEO and other as
sociates, then there is room for doubt about his personal
commitment. May I be another to echo the statement,
'‘The C.E.O. may always be the boss, but he isn’t always4
right.” Just most of the time!

Mr. Schatz joined the bank in 1971,
was elected assistant trust officer in
1972, trust officer in 1973 and vice
president and trust officer in 1974. In
1971 he graduated from the University
of South Dakota School of Law. He
is a member of the American, Iowa
and Sioux City Bar Associations and
has been admitted to practice in the
U. S. District Courts of the Northern
District of Iowa.
Mr. Clause joined the bank in 1966
as a trainee at the First Trust and
Savings Bank in Anthon. He moved
to Sioux City in 1968 as manager of
the Morningside office and in January
of 1969 was promoted to assistant
cashier. In 1972 he transferred to the
operations department in the main
bank and in July of 1974 was pro
moted to his present position in the
livestock loan department.

Union Trust Opens
Crossroads Office
Ribbon cutting ceremonies were
held recently at the new Crossroads
office of Union Trust and Savings
Bank, Fort Dodge. The event kicked^
off the bank’s two-day grand opening.
In addition to all customary banking
services, the 6,500 foot square building_
includes a 24 by 36 foot community
room. The bank was designed by the*
Griffith Company and built by the C.
Glenn Walker Company. Both ares
Fort Dodge firms.
Pete Garatoni is president of the
bank.
Honored for Service
Thelma Henderson, cashier at the^
Farmers Savings Bank of Shelby, re
cently was honored by bank officers
for 25 years of service to the bank.

drovers-

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?

T h n U ro ve rs

National Bank of Chicago

Illustrated above is Frederic R e m in g
to n 's " C u t t in g O u t A S te e r." A
14 x 17 -inch reproduction suitable
for fram ing is available w ithout cost
or obligation upon request.

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 orthw estern

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

Banker, June

19 7 $

118

Iow a

News

9:20

9:50

10:30
11:00
MB President Ben E. Summerwill (left) and Vice President Richard Randall.

Plan Third Annual Convention For
Iowa Independent Bankers
M

ARTIN Mayer, nationally-known
author of “The Bankers” and
“The Lawyers,”
will be a keynote
speaker at the
T h i r d Annual
convention of the
Iowa Independent
Bankers Associa
tion at L a k e
Okoboji, July 1719.
R e g istra t i o n
will start at 9:00
A.M., Thursday, July 17. Activities
start at 3:30 P.M. when the Empress
will dock at the New Inn pier to pick

up the young adults for an hour long
boat ride. At 5:30 P.M., a social hour,
dance and lake cruise will be held on
the Empress for a two hour period
while the young people hold a picnic,
featuring a variety of games, on shore.
The official program gets underway
on Friday morning, July 18. Details
follow:
First General Session —• New
Inn Convention Center.
Call to order —■Ben E. Summerwill, IIB president and
president, Iowa State Bank
& Trust Company, Iowa

More Financial Institutions In
Iowa Use The Specialized
Services Of The KIRK GROSS
COMPANY Than Any Other
Planning Service

to*

B an ke r, June

A.M.
9:00

9:10

10:00
10:15
11:40

Golf — Brooks Golf Course
Ladies Luncheon —■New Inn
Lakeview Dining Room, ^
featuring Frank Miller, car
toonist, Des Moines Regis
ter and Tribune.
Saturday, July 19
*
Second General Session —•
New Inn Convention Center.
Call to Order —- Richard Ran
dall, vice president, Iowa <
Independent Bankers, and
president, Dunlap Savings
Bank, Dunlap.
^
Introduction and Remarks of
IBAA Dignitaries.
^
Kenneth J. Benda, president,
IBAA.
Robert D. Dixon, Iowa di- <
rector of IBAA.
Coffee Break.
i
Address —- Martin Mayer, _
author of “The Bankers,”
and “The Lawyers.”
v" 1
Annual Business Meeting.
s
Ben E. Summerwill —- presid
ing.

ACORN

KIRK GROSS CO

Northw estern

P.M.
12:00

Friday, July 18

A.M.
9:00

Specialization Takes The Guesswork Out
Of Building Or Remodeling P r o j e c t s . . . . .

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

11:30

City.
Invocation.
>
Keynote Address — President
Summerwill
'
Keynote Address —• George y
M. Dishman, director of
corporate
development, f
First Data Resources, Inc.
Omaha.
Address — The Honorable J.
Phil Campbell, U n d e r
Secretary of Agriculture, ~
Washington, D.C.
Coffee Break.
“Iowa’s Planning for the Bi- >
centennial”
—• Murray
Goodman, executive direc
tor for the Iowa American ^
R e v o lu tio n Bicentennial
Commission, Des Moines. 4
“Why Use the Small Business
Administration” —• Daryl *
K. Schuster, regional direc
tor, United States Govern
ment, Small Business Ad- "
ministration (Region V II), f
Kansas City.

110 EAST 7TH ST. * WATERLOO, IO W A 50705
PHONE (319) 234 6641

197S

Sale
Registers

A cce p te d S ale Registers b y Bank
Cler ks E v e r y w h e r e "
For information write

THE ACORN PRINTING CO.
Oakland, Iowa

Iow a

Resolution Committee Report.
Chairman — Keith W. Camp
bell,
president, Citizens
State Bank, Sheldon.
Nominating Committee RePort.
Chairman —• John C. Dean,
past president of the Iowa
Independent Bankers, and
president, Glenwood State
Bank, Glenwood.
Election of Officers.
Announcements.
Adjournment.

,
^

*■
V .M .

6:00
7:00

Social Hour —• New Inn
Beach.
Barbeque — New inn Beach.

Mewton Banker Retires
A. E. Peters has retired from active
staff responsibility at the Jasper Coun
ty Savings Bank,
I Newton, accord
ing to Donald R.
Runger, president
and chief execu
tive officer. Mr.
Peters will con
1
tinue as chairman
and a member of
the trust commit
tee.
A. E. PETERS
Mr. Peters be
gan his banking career with the State
•■Department of Banking in 1932. In
1938 he joined the Jasper County Sav
ings Bank and was elected assistant
►cashier in 1939. He was named vice
president in 1946, director in 1952,
Executive vice president in 1956, presi
dent in 1963 and chairman in 1971.

News,

119

1917. He served as cashier, president
and chairman.

He joined Capital City State in Janu
ary of 1952.

Ankeny State Elects
Senior Vice President
Donald L. Davis has been elected
senior vice president of the Ankeny
State Bank, according to Rolfe O.
Wagner, chairman.
Mr. Davis previously was executive
vice president, manager of real estate
loans division and director of Capital
City State Bank of Des Moines. He
began his banking career in 1946 at
Central National Bank of Des Moines.

Blairstown Elections
Benton County State Bank, Blairs
town, has elected a new board of di
rectors. Those elected include Merlin
Hagen, Richard L. Kelly, Earl M.
Kimm, Harold J. Martin, Roy M. Ral
ston, Lloyd Shaull and A. C. Siek.
Officers of the bank are Loyd
Shaull, president; Earl M. Kimm,
executive vice president; A. C. Siek,
vice president, and Harold J. Martin,
cashier.

Edgar Ballou
Funeral services were held recently
for Edgar Ballou, 88, honorary chair
man and founder of Security Trust
and Savings Bank of Storm Lake.
Mr. Ballou had been in banking in
Storm Lake for 69 years. In 1974 he
was honored for his many years of ser
vice and was recognized as the dean
of Iowa bankers by the Iowa Bankers
ssociation.
Mr. Ballou, his father and another
'associate founded the Security Bank
in 1908. It was incorporated as the
Security Trust & Savings Bank in

Join the “In Group”
IOWA IN D E P E N D E N T
BANKERS CONVENTION
L A K E O K O B O JI, J U L Y 17-19
% a Family type convention
^ come and see where we stand
% bring golf dubs and handicap
Make reservations through Richard Berglund, Secretary, Iowa Independent
Bankers, 222 Equitable Bldg., Des Moines. Telephone 5 1 5 /2 4 4 -4 2 0 1 .

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

N orthw estern

Banker,

Jun e

1975

120
graduate of Capital City Commercial
College and Pace Institute of Account
ing in New York City.

J. Locke Macomber, president of
Valley National Bank, has announced
the election of three new officers:
Pamela S. Floren, to instalment loan
officer, Patricia J. Simms to employee
benefits manager, and Jean Tannatt to
trust administrator.

Des Moines News
T^OLLOWING a meeting of the
board of directors, John R. Fitz
gibbon, chairman and chief executive
officer of the Iowa-Des Moines Na
tional Bank, announced the election of
the following officers: Voldemars Va~
nags, correspondent banking officer;
Joseph D. Petra and N. Janine Young,
bond investment officer; Robert J.
Ertle, credit officer, Master Charge,
and Kim S. Meadows, loan services
officer.
John B. Johnson was promoted from
bond investment officer to senior bond
investment officer.

1 dwin A. Langley, president and
chairman of Capital City Bank, has
announced t h e

FLOREN

tobei of 1948.
b boyer
Since then he has
worked in all departments of the bank.
He most recently was manager of the
Hickman Road office, a position he
had held since October of 1972.
Tom H. Bachman has'been elected
president and trust officer of the East
Des Moines Na-

V . VANAGS

J. D. PETRA

in
1963,
was
T. H. BACHMAN
elected as execu
tive vice president in 1966.
N. J. Y O U N G

K. S. MEADOW S
¿N o r t h w es t e rn

R. J. ERTLE

J. B. JO HNSON

B a n k e r , Ju ne

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

1975

Funeral services were held recently
for Lloyd Fugill, 75, a retired Des
Moines banker. Mr. Fugill retired on
September 30, 1964, as a vice presi
dent in the commercial loan depart
ment of the Iowa-Des Moines National
Bank. He was well-known throughout
Iowa regarding the extension of agri
cultural credit.
A native of Keokuk, he had lived in
Des Moines since 1920. He was a

SIMMS

TANNATT

Mrs. Foren joined the bank in 1972 *
following her graduation from the Uni
versity of Northern Iowa, Cedar Falls. J"
Miss Simms and Mrs. Tannatt joined x\
the bank in 1974.

In conjunction with the supermar- ,
ket banking test program announced
April 27, John R. Fitzgibbon, chair- '
man and chief executive officer of the
Iowa-Des Moines National Bank, last
month named the five Des Moines area
stores that will participate in the sixmonth test project. They are:
Hy Vee — 2559 E. Euclid
Hy Vee — Fleur Drive & McKinley
Hy Vee —- 1441 - 22nd St., West
Des Moines
Hinky Dinky — 4415 Douglas
Hinky Dinky — 2710 Ingersoll
Mr. Fitzgibbon said that the termi
nal units that activate the system would
be on display and operational in the
lobbies of the bank’s four locations for
demonstration and educational pur-'
poses for a five-week period beginning
May 21. Then they will be moved to
the supermarket courtesy counters dur
ing July.
The Iowa-Des Moines system will
be called “EASY BANKING” and will
permit a customer to make most re
tail banking transactions at the cour
tesy counter of the five supermarkets
by simply presenting his Master ^Charge
card to the clerk.

Availability increases
your earnings.
We feel our availability
schedule is the best
in the continental U £ .
For more details, call our Correspondent Bank Department toll free 800-362-1615.

^ P ortland:

BOSTON

• HELENA
M Ü M Ä L lS ; « iS m iM Ü
BUFFALO

DETROIT %
CHICAGO

NEW YORK CITY
PHILADELPHIA

::CÜ£V£kAND:L

OMAHA.«'

BALTIMORE

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RICHMOND

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♦ ST. LOUIS »LOUISVflLE '

S ß N FR A N C I3 C C

mmm

* KANES'CITY: •

...........

• NASHVILLE
. m c m d u ie ::'

«C h arlo tte

• uttlerock
•

¿LECPASD

J
/

• OKLAHOMA CITY ;;;;

TOSa NGLLCS

\
/

.
•V Y T L A N TA /
• "BIRM INGHAM
• I

....................

JACKSONVILLE

• DALLAS
HOUSTON

NEW ORLEANS

SAN ANTONIO

KEY

DEADLINE

AVAILABILITY

ITEMS

11:00 P.M.

NEXT DAY

IOWA

•

4:00 A.M.

S A M E DAY

FEDERAL RESERVE CITIES

•

8:00 A.M.

SAM E DAY

DES MOINES AND SURROUNDING CITIES FEDERAL HOME
LOAN B A N K -S T A T E TREASURERS ITEMS

4:00 A.M.

NEXT DAY

COUNTRY ITEMS NATIONW IDE

“C

99
Central National Bank 6- Trust Company
DES MOINES (515)243-8181 MEMBER FDIC
LO C U ST AT S IX T H /F IF T H & G R A N D / 35TH & IN G E R S O L L / W EST DES M O IN E S
A FFILIA TE D W ITH C ENTRA L N A T IO N A L 8 A N C S H A R E S , IN C .

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

A Mere Crack
In the Wall
Mother to small son: “I don’t care
if the basement wall is cracking. Stop
telling everyone that you come from
a broken home.”

How's

SUSINESS ?

Quick Call
The girl smiled at the waiting line
as she went into the phone booth.
“I won’t be long,” she said. “I just
want to hang up on him.”

Patience
Patient: “Hey, that wasn’t the tooth
I wanted pulled!”
Dentist: “Relax, I’m coming to it!”

Backyard Fishing
“Just look at what your husband is, -c
up to,” said a woman to her neighbor
as she noticed the man with this fishing“**
line dropped into a small pail in the
backyard.
“Yes,” replied the other woman sad--«
ly, “I’d like to take him to a psychi
atrist, but we need the fish.”

Back Seat Driver
A man was driving his car with his
wife in the back seat and stalled his car
on a railroad track with a train com
ing. “Go on! Go on!” screamed the
wife.
To which the husband replied,
“You’ve been driving all day from the
back seat. I’ve got my end across, see
what you can do with your end.”

IN D E X OF
A DV ER TISER S
JUNE, 1975
A
Acorn Printing Company .................................. 118
Allison-Williams ....................................................
70
American Express, T.C......................................... 8-9
American National, Chicago .............................. 52
American National, St. Paul .............................. 63
B
Banco Financial Corporation ...........................
49
Bankers Personnel .............................
71
Bankers Trust Company . .................................. 108
Bank of America ................................................ 24
Bank of North Dakota ....................................... 72
C

Central National Bank, Des Moines ................ 121
Chase Manhattan Bank ....................................
3
Chiles, Heider ......................................................
86
CMI Investment .................................................. 39
Commerce Bank .................................................. 123
Continental Illinois National Bank ................
7
Continental Western Insurance Co....................
10
D
Daktronics .............................................................
12
DeLuxe Check Printers ....................................
15
N o rthw estern

B a n k e r , June

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

1975

Cautious Young Lady
The man-about-town and his flashy
female companion were seated at a ta
ble in a plush restaurant. Suddenly he„
glanced cautiously about, then turned
to the young lady and whispered: “I’ve 4
got a question for you, honey. Could
you care for a man who swindled his^
firm out of $100,000?”
<
The young lady then also looked
cautiously about the room, then look- *
ing him squarely in the eye said: “And^ ^
I have a question for you too. Have
you still got it?”
*

Summer
Summer is that time of the year
when the highway authorities close the
regular roads and open up the detours. ^

Deposits, Inc............................................................ 106
Douglas Guardian Warehouse .........................
17
Downey, C. L......................................................... 11
Drovers National Bank .................................. .. . 117
E
Employers Mutual Companies ......................... 51
F
First Financial Marketing ..................................
6
First Mid America ............................................. 104
First National Bank, Casper ...........................
87
First National Bank, Duluth ......................... 70-71
First National Bank, Glendive .........................
84
First National Lincoln ....................................... 103
First National Bank, Minneapolis ..................
78
First National Bank, Omaha ...........................
99
First National Bank, St. Louis .........................
57
First National Bank, St. Paul ..................... 64-65
First National Bank & Trust Company of
Wyoming ...........................................................
85
13
First National City Bank ..................................
First National City Bank, T.C........................... 31
G
Gross, Kirk Company ......................................... 118

Insurance Programmers ....................................
59
Iowa Des Moines National Bank ..................... 124
Iowa Independent Bankers ...............
119
K

Kooker, E. F. Associates .................................. 119
L
Lake Shore Drive Hotel .................................. 22
LaSalle National Bank ....................................... 113
Lincoln Benefit Life ........................................... 102
M
Manufacturers Hanover Trust ......................... 45
Meilink Bank Equipment .............................. 33-34

Merchants National Bank ..................................
2
Midland National Bank .................................... 62 ,
Mortgage Guaranty Insurance Corporation 18-19
Mosler Safe Company ....................................... 23
N

National Bank of Commerce ......................... .. 101
National Bank of Waterloo ............................. I l l
National Boulevard Bank of Chicago ...........
55 -*
North Central Companies ........................... .. , 21
Northern Trust ................................................
43
Northwestern National Bank, Minneapolis . . . 60 •

Ozark Airlines ....................................................... 107
P
Packers National Bank ................
. 105
R
Rand McNally ....................................................... 16 «
S

St. Paul Hospital & Casualty .......................... 14
Seaway Port Authority of Duluth ................ 69
Security National Bank, Sioux City ............ 115
Security Pacific National Bank .............
67
Senior Citizens Unlimited .............................. 20
Square Deal Insurance Company .................. 112
Stockmen’s Bank ....................
87
T
*
Talcott, James ................................
5
U

United Guaranty ................................................ 41 ‘
United Missouri Bank of Kansas City . . . .
47
United States Check Book ..................... 8 6 , 106
United States National Bank .......................
94 ^
V

Van Home Investments ..................................
Van Wagenen, G. D. Company ..................
W
Wyoming National Bank

50
68

84\

1: ■ ' ' .

II. " I f
K ?
*

___________
0

foryour
money.
J*

Now —one phone number, one central location
takes care of all your bank’s money market trans
actions. Bonds, U.S. Treasury bills, commercial
paper, municipals —whatever you're interested in.
Just dial 234-2455. You’ll receive computerized
Wall Street information that’s accurate within 5
seconds! And our professional staff can alert you
to financial trends that might affect your locale.
And to save you even more time, you’ll receive
weekly copies of our BOND MARKET SUMMARY,
a concise, accurate report of the past week’s
Money Market activity. To learn in more detail how
our Money Market Center can help you, and to get
on the mailing list for BOND MARKET SUMMARY,
call 234-2455. It’s the 1 for your money.

i f ' C ommerce Bank
Ol

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Federal Reserve Bank of St. Louis

U L

o f Kansas C ity
10th & Walnut

M em b"

YES . . . We’ll Be Happy To Help

George Milligan

Bob Buenneke

Bernie Kersey

Dwayne Smith

245-3300

245-3302

245-3301

245-3305

Dorothea Wolfe

John Zdychnec

Voldy Vanags

245-3306

245-3304

245-3303

This group of people will be happy to help you with
any of your banking needs. Just give them a call any
time. If they don’t know the answer there are experts
in every field of banking at the lowa-Des Moines . . .
ready to help with your correspondent needs.

Iowa-Des Moines National bank
7th & Walnut Des Moines, Iowa 50304

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

245-3131

m e m b e r fdic

Banco