Full text of The Northwestern Banker : June 24, 1968, No. 1104

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No. 1104

Des Moines, Iowa

Foresee Dangerous Banking Proposals

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“ Keep in touch with your
Congressmen and pay attention
to the major proposals for new
banking legislation.”
This warning was conveyed
to bankers by a variety of
speakers at most of the spring
conventions and regional meet
ings in the Northwestern Banker
area. Checking some of the
current proposals, the advice
should be followed by every
officer and director of every
bank, regardless of size .
Some of the proposals may
seem ‘ innocent’ at first glance but in actual practice they may
have broad and dangerous rami
fications. For example, the ex
tension of credit by banks for
the purchase of unlisted stocks
would come under Federal Re
serve Board control under leg is
lation approved by the Senate
Banking Committee. The Fed
has maintained that the addi
tional control of margins is
needed as a safeguard against
the excessive use of credit in
thç over-the-counter market. The
Fed has indicated that if granted
the regulatory authority over
unlisted
stock purchases on
credit, it would use the author

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

ity over unlisted stock pur
chases on credit, it would use
the authority to regulate margins
of only certain actively traded
issues.
Intentions may be g o o d -b u t,
what would be the situation if
the regulatory authority was ap
plied to bank stocks and an
80%
margin requirement was
established? This would seem
to end independent ownership
of banks, and it would place
severe limitations on the market
ability
of closely-held bank
stocks.
Another example is the socalled
Antirobbery
measure,
which has passed the House
and is now in the Senate Bank
ing Committee. It requires the
Federal
Reserve Board, the
FDIC and the Comptroller of
the Currency and the FHLBB to
issue regulations spelling out
minimum standards for the in
stallation of protection equip
ment. The regulations issued
by the agencies would set time
limits within which banks and
S&L’ s would have to meet the
standards.
Both
banks
and
S&L’ s would, have to file peri
odic reports with the agencies

June 24,1968
on the security practices. Any
institution violating the regu
lations would be subject to
fines of up to $100 a day! It
would seem that the regulations
might be prohibitive in cost to
many of the smaller banks.
Certainly, the requirements for
a $100 million bank should be
different from a $8 million bank.
Much has been written and
said about the Federal Charter
Bill and its inherent dangers.
Perhaps lesser known — but still
dangerous — are bills like the
one introduced by Sen. Philip A.
Hart of Michigan, designed to
prevent banks and other lenders
from making a profit in the
writing of credit life insurance.
Congress will no doubt adjourn
in early August — but the next six
weeks will be important —and the
time for bank officers and direc
tors to keep in close touch with
their Congressmen.

South Dakota Secretary
To Join ABA Staff
Roy W. Terwilliger has re
signed as exec, sec-treas. of the
SDBA, effective Sept. 1, to ac
cept a position with the ABA,
as secretary of the state assn,
section and special a sst, to Dr.
Charls E. Walker, ABA exec. v.p.

Correspondent service? Call the bankers
from the “Show y o u ” bank fo r all
your needs.

Bankers Trust co.

SIXTH AND LOCUST. DES MOINES
Member. F R S ft F. O I. C.

bank for 20 years, most recently
as cashier.

We're here to help
you get what you want

IOW A-DES M OINES
NATIONAL BANK
Jerry Nelson

Member Federal Deposit Insurance Corporation

IOWA NEWS
AMANA: Members o f the BentonIowa County Bankers A ssociation
will hold their summer meeting
here tonight (June 24) starting at
6:00 p.m.
BETTENDORF: John Pheiffer has
been named the director of the
Bettendorf Bank and Trust Com
pany’ s new business development
department, beginning July 1. He
is presently executive secretary
for the Bettendorf Chamber of
Commerce.
CHARITON: Jim Clark has been
named trust officer to head an
expanded trust department at the
National Bank and Trust Company.
He has been with the bank since
December 28.
COUNCIL BLUFFS: Wayne C. Clark
has been named cashier of the
First National Bank, replacing
Mrs. Betty J. Feder, who is moving
from this area.
DES MOINES: Ronald Andersen has
been named assistant cashier of
r

the First Federal State Bank. He
joined the bank in April after
seven years with O’ Dea Finance
Company, Des Moines.
DIAGONAL: The First State Bank
has been sold to A. B. Wissink of
Maquoketa. Mr. Wissink also oper
ates a bank at Andrew, Iowa.
SIOUX CITY: Paul Bekins, 68,
president o f the Bekins Van and
Storage Company and a director of
the Security National Bank, died
recently in a Sioux City Hospital
following an illness of several
months.
TIPTON: James E. Moore has been
named president and chairman of
the board o f directors at the
Tipton State Bank. He su cceed s
L. D. Suchomel, who recently
resigned. Mr. Moore has been
associated with the bank for 23
years, most recently as vice pres
ident.
R. J. Ferguson has been named
vice president and cashier. He
also was elected to the bank’ s
board of directors, to fill the
vacancy created by Mr. Suchomel’ s
resignation, and has been with the

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That's why over half the banks in Iowa are
— MNB correspondents
Peter Bailey
Assistan t V ice President

I MERCHANTS NATIONAL BANK
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C e d a r Rapids, Iowa 52401
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SECURITY
NATIONAL
BANK
ATH AND PIERCE STREETS • SIOUX CITY

WILLIAMSBURG: The formal open
ing of the Farmers Trust and Sav
ings Bank’ s hew bank building
will be held Saturday, June 29.

NEBRASKA NEWS
ATKINSON: L eo Adams, director
of the First National Bank was
honored recently by members of
the bank for his 50-year banking
career. He began his banking
career in 1918 in Chander, Nebr.,
and came to Atkinson from St.
Paul, Minn., in 1955.
BIG SPRINGS: The U. S. Supreme
Court has ruled that Duane Earl
Pope, found guilty in the fatal
shooting of three bank employees
and wounding of a fourth in the
1965 robbery of the Farmer’s State
Bank o f Big Springs, cannot be
put to death under federal law.
Deuel County, Nebr., Attorney
Robert E. Richards said he is con
sidering an attempt to try Pope on
four state complaints. If found
guilty, the 25-year-old man could
be sentenced to death under state
law. Victims of the $1,500 robbery
were Andreas Kjeldgaard, 77, bank
president; Glen Hendricks, 59,
cashier, and Mrs. L ois Ann Hathan,
35, bookkeeper. A fourth person,
Franklin Kjeldgaard, now 29, was
left partially paralyzed by bullets
in the back and neck.
COZAD: C liff Young has been
named assistant cashier of the
Cozad State Bank to succeed
former cashier Jerry Nightingale,
who will become president of the
Farmers State Bank at Silver
Creek, Nebr. Mr. Young has com
pleted four years with the Center
Bank of Omaha and was associated
with the National Bank of Com
merce for two and one-half years.

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DAKOTA CITY: An application
for a bank charter has been filed
with the State Department of Bank
ing by the proposed Sookota State
Bank. Hearing has been set for
August 22 at the Liquor Control
Commission, 401 NSEA Building,
605 South 14th Street, Lincoln,
Nebr.
FALLS CITY: Robert Perry, vice
president o f the Richardson Coun
ty Bank, has announced the ap
pointment of Don Campbell to the
bank’ s installment loan department.
LOUP CITY: Dean and Roger Sack
of York, Nebr., and William A.
Bowness of Lincoln have pur
chased the First National Bank of

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Loup City. The bank has been
owned by the Owens and Ryan
Fam ilies, who will continue to
operate it until September and will
then remain as directors. Mr. Bowness will take over management of
the bank on September 1.
OMAHA: An open house will be
held by the West Side Bank in its
newly expanded banking quarters
on June 29 and 30. Construction of
the $1 million addition to the bank
began about a year and a half ago.
OMAHA: The National Labor R ela
tions Board has directed the First
National Bank to offer re-employ
ment to five women workers who
walked off their jobs last Septem
ber 12 in protest of long working
hours. The bank had refused to
allow the five to return to work
the day after the walk off, con
tending they had quit their jobs.
RAVENNA: Norman A. Schmidt, 37,
of Ord, N ebr., who presently oper
ates a public accountant firm, has
accepted the position of vice
president at the Ravenna Bank. He
will assume his duties July 1 and
will be acting cashier and auditor
at the bank.

MINNESOTA NEWS

BLOOMING PRAIRIE: Larry A.
Bergemann has been named farm
representative at the Farmers and
Merchants State Bank. He was
formerly engaged in farming near
Welcome, Minn.
CLARA CITY: Construction was
begun recently on the new Citizens
State Bank. The two-story struc
ture is to be completed by Novem
ber 1, 1968.
LeR O Y: R ussell L. Noble of R iceville, Iowa, has purchased con
trolling interest in the First Na
tional Bank. He is now serving as
vice president and cashier of the
R iceville State Bank, but will
move to LeRoy as soon as housing
becom es available.

cashier of the bank, and Jerry
Peterson has been elected vice
president. Mr. Bohmer will remain
as chairman o f the bank’ s board
of directors.
NORTHFIELD: The third annual
session of the Minnesota School
of Banking got underway Sunday,
June 23, when 140 students regis
tered for the one-week school
held on the campus of St. Olaf
C ollege, Truman Jeffers, secretary
of the Minnesota Bankers A ss o ci
ation, is director of the sch ool.
Students attend the one-week s e s
sions two years in a row, with
principal emphasis on studies
involving small bank management.
ROCHESTER: The 14th annual
conference of the Upper Midwest
Agricultural Credit Council will
be held at the Kahler Hotel
June 26—28. Registration will
begin at 1:00 p.m. Wednesday,
June 26.
ST. PAUL: Two new directors
have been named to the board of
the Northwestern National Bank.
They are Henry T. Rutledge, pres
ident of Northwest Bancorporation,
and George Tesar, general man
ager o f Dayton’ s department store
in St. Paul.
TRACY: The Farmers and Mer
chants State Bank will become the
Northwestern State Bank of Tracy,
effective July 1.
ST. PAUL: Robert T. Wallner has
been named president of the First
Security State Bank, to succeed
Clarence H. Gieske, who will
retire as president, but will con
tinue as a member of the bank’s
board of directors. Mr. Wallner has
been associated with the bank for
14 years, serving as manager of
the installment loan department,
cashier and, since 1962, vice
president and a director.

ILLINOIS NEWS
CHICAGO: The Illinois Bankers
A ssociation soon may recommend
legislation to boost the state’ s
usury ceilin g above its present
7% level, according to Robert C.
Schrimple, executive vice pres
ident. The association is consider
ing the matter closely and is ex
pected to reach a decision before
the Illinois Legislature convenes
on July 15.
HOYLETON: Application to with
draw from Federal Reserve mem
bership has been filed by the
Hoyle ton State and Savings Bank.

Court Rules National Banks
Not Subject to Sales - Use Tax
WASHINGTON: The Supreme Court,
by a vote of 5 to 3, has ruled na
tional banks are not subject to
state sa les and use taxes.
The Court reversed a decision
by the Massachusetts Supreme
Judicial Court, which held that
national banks must pay such
taxes because they are no longer
“ Federal instrumentalities.”

Personal Attention
to All Your
Correspondent Needs
C A LL

402
AREA CODE

341-8765

J\fational

BANK
O M A H A
Member Federal Deposit
Insurance Corporation

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MURDOCK: Donald R. and Jerry D.
Peterson have purchased control
ling interest in the First State
Bank from John O. Bohmer of
y
Brooten, Minn. Donald Peterson

has been elected president and
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Member FDIC

National Bank
of Com m erce
Main Bank 13th & O Sts. / Patio Office 10th & O Sts. / Lincoln, Nebraska

Tom Cannon is emphatically Earnest
Call him “Earnest," if you like. Tom won't mind. He's proud to
belong to the earnest crew of correspondent bankers at
Commerce Trust. And he's proud that one bank in every nine
throughout the nation depends on Commerce Trust. If you
take banking as seriously as Tom Cannon does, get in touch
with him soon.

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Kansas City's Oldest and Largest Bank
Member Federal Deposit Insurance Corporation

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OMAHA

SOUTH DAKOTA NEWS
ABERDEEN: James P. Scheurenbrand has resigned as assistant
vice president o f the Aberdeen Na
tional Bank, to join the Kansas
State Bank and Trust C o., Wichita,
as a vice president. He had been
with the Aberdeen National Bank
for ten years.
Roy C . Hanson, assistant vice
president and manager of the timepay department, will move to the
commercial department to assume
Mr. Scheurenbrand’ s duties. LeR oy
M isfeldt will take over the duties
in the timepay department.
SISSETON: Marlowe Stenson of
New Effington has joined the
Roberts County National Bank, as
assistant cashier and co-manager
of the insurance department. He
was formerly with the Bank of New
Effington.

NORTH DAKOTA NEWS
BISMARCK: The 1968 Group Meet
ings have been announced by Will
iam J. Daner, secretary of the
North Dakota Bankers A ssn. They
are: Oct. 8 (Tuesday), D evils Lake;
Oct. 9 (Wednesday), Williston;
Oct. 10 (Thursday), Dickinson, and
Oct. 11 (Friday), Jamestown.

B an k U nder the Big

CENTRAL

NATIONAL

MINOT: Union National Bank has
named Joe E. Roberts as assistant
vice president. He was the first
commander of the Minot Air Force
B ase. His duties will include
public relations and business de
velopment.
The bank has also announced
the election o f Morris Lawrence
as assistant vice president and
ag representative. He was formerly
assistant cashier.

COLORADO NEWS
DENVER: Controlling interest in
the C olfax National Bank has been
purchased by Dan H. Sebastian, a
Denver banker since 1953, and
Edward M. W illis, head o f Certified
Indemnity Co. of Denver.
Selling their interests in the
bank were a group of officers,
former officers and directors of
the Aurora National Bank, who had
acquired control of the C olfax
National in January 1967.
Mr. Sebastian has resigned as
senior v ice president of the North
Denver Bank, where he had been
an officer for the last two years,
to take over active management of
the Colfax National.
Mr. Sebastian also is president
of the Buena Vista Bank & Trust
C o. and the Bank of Fairplay.
Mr. Willis is associated with Mr.
Sebastian in the ownership of the
two banks.
Charles R. Sillstrop, who has
been president of the C olfax Na
tional, is to become president o f
the new Montbello State Bank,

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scheduled to be opened near the
intersection of Interstate 70 and
Peoria St., in Adams County.
The Colfax National was opened
Oct. 1, 1962.

♦
EVERGREEN: FDIC has approved
a drive-in facility for the Ever
green State Bank.

WANT ADS

Rates 25 cents per w ord per
insertion. Minimum: 12 words.
NORTHWESTERN BANKER
306 15th St., Des M oines, Iow a
POSITION AVAILABLE
Will have an opening for a young
man about September for position
as assistant cashier in a $3)4 million bank in east central Iowa.
Prefer age 22—26 with a minimum
of three years experience. Salary
open. Write File SRE, in care of
NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309.
FOR SALE
Loan application forms for the
modern agricultural banker. Sam
ples on request. Farm Business
Council, Inc., P.O. Box F, Urbana,
Illinois 61801.
POSITION WANTED
Specialist in overlines and cattle
loans desires work. Offers years
of banking experience. Intense
desire to please. Backed up by
staff of specialists in all phases
of banking. For immediate action
call Max Roy in Iowa City 338-5224
or at La Salle National Bank, 135
South La Salle Street, Chicago,
Illinois 60690. STate 2-5200 (area
code 312).
BURROUGHS SENSIMATIC F1500
This machine with but ten months
of light use for sale at a real bar
gain. Auxiliary cabinets included
for a total of $6,000. Call Fred
Stiner co lle ct, Nebraska Surety
Company,
Box 2001, Lincoln,
Nebraska 68501. (Area Code 402)
477-3991.

No. 1104 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines, Iowa 50309. Subscriptions 50^ per copy, $6 per year. Second c la ss postage paid at D es Moines, Iowa. Address all mail

subscriptions,
changes o f address (Form 3579), manuscripts, mail items to above address.

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Federal Reserve Bank of St. Louis

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Full text of The Northwestern Banker : June 24, 1968, No. 1104

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