The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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Federal Reserve Bank of St. Louis
Russell Hess, Vice President,
Trust Department
James E. Coquillette, Vice President,
Commercial Loans
Clyde Peremsky
Cashier
Correspondent Banking is a^PtUOUol Service
at The Merchants National
Our new IBM Electronic Datacenter has been installed to provide
even faster and better service to our correspondent bank customers.
While we are very proud of this new service, we know that your
business demands something m o re -in d iv id u a l attention. Therefore,
serving you best is a personal matter with us . . . we are always
guided by your needs and your wishes. Over half of all Iowa banks
are enjoying this personalized service. If you aren't one of them
THE MERCHANTS NATIONAL BANK OF CEDAR RAPIDS
we’d like to tell you more about us. Just give us a call.
M E M B ER F .D .l.C .
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Federal Reserve Bank of St. Louis
3
How $20,000 in silver
traveled all night to save the day
The time: late one Friday afternoon during the berry-picking
season. The start: a telephone
call from a correspondent bank
¡"n>
' in a near-by state. The subject:
$20,000 in silver needed to pay off hundreds
of itinerant berry pickers the next morning.
The question: could The Northern Trust
meet this coin emergency? The answer:
“yes”—and we did.
The silver was immediately loaded into a
tru ck . . . and the truck, driven all night, ar
rived in the town early Saturday morning.
Our correspondent bank’s farm customers
received the coins—on schedule.
The fast action we took to meet this re
quest points up an important fact—that The
Northern Trust is always willing to be of
service, to lend a hand.
As a correspondent of The Northern
Trust, you can count upon ready coopera
tion. I t’s an important “plus” to our full range
of banking, credit, bond, trust and operating
services. We invite your inquiry; if you are
not already acquainted with us, call N. Hall
Layman, Vice President, or one of his associ
ates in the Banking Department.
NORTHERN
5 0 South L a S a lle S tre e t
C h i c a g o
9 0 ,
Illinois
FI 6 - 5 5 0 0 • M e m b e r F . D . I . C .
RUST
BANK
'N o . 896. N o r th w e s te r n B a n k e r is p u b lis h e d m o n th ly b y t h e N o r th w e s te r n B a n k e r C o m p a n y , 306 F if t e e n t h S tr e e t, D es M o in es 9, Io w a . S u b s c r ip tio n 35c
p e r co p y , $3 p e r y e a r. S eco n d class p o s ta g e p a id a t D es M o in es, Io w a . A d d re s s a ll m a il ( s u b s c r ip tio n s , c h a n g e o f a d d re s s , F o r m 3579. m a n u s c r ip ts ,
m a il ite
s ) to a b o v e a d d re s s .
Digitized
formFRASER
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Federal Reserve Bank of St. Louis
4
A
"Y
LA W R EN C E F. STERN, Chairman o f the Board
ROBERT E. STRA U S, President
ALLEN P. STU LTS, Executive Vice President
4.
M. E. FEI W ELL,
Senior Vice President
C. H. BENTLEY,
Vice President
Personnel Division
L. R. G IG N IIL IA T , JR.,
Vice President
Division A Commercial Loans
J. N. STERN,
Vice President
Trust and Estates Division
E. L. A N D R E W S,
Vice President
Corporate Trust
Division
P. C. R A YM O N D ,
Vice President
Division B
Commercial Loans
M. J. H A YE S,
Vice President
Investment Division
H. H. SA LK,
Vice President
Real Estate and
Mortgage Loan Division
H. J. JO H N S O N ,
Vice President
and Trust O ffice r
C . C. K U N IN G ,
Vice President
Correspondent Bank Division
W . S. KIRKLAND ,
Vice President
Division A Commercial Loans
F. J. O ’ROURKE,
W . A. G A TZER T ,
J. H. CLARKE,
Vice President
Vice President
Vice President
Division A Commercial Loans Division G Commercial Loans Government Bond Division
W . O . KURTZ, JR.,
Vice President
Correspondent Bank
Division
A. V. R O Y D S ,
Vice President
Division H
Commercial Loans
W . G . E R IC S S O N ,
W . S. D ILLO N ,
Vice President
Vice President
Division A Commercial Loans Trust and Estates
Division
L. J. G ELL,
Vice President
Division E
Commercial Loans
C . C. M O R G A N ,
Vice President
Trust Investment
Division
E. A. BERNDT, JR.,
Vice President
Trust and Estates Division
I. FRAN K, JR.,
E. W . STEVEN S,
Vice President
Vice President
Division H Commercial Loans and Com ptroller
R. O . D A LY,
A . H. M O RSTA D T,
Vice President & Cashier Vice President
Bank Operations
Pension and Profit
Sharing Trust Division
G . E. KEIDEL,
Vice President
International Banking
Department
E. C . K IN G ,
Vice President
Trust and Estates
Division
Put these men on your team.
We serve thousands of people, b u t we serve them one at a time.
A m e r ic a n N a tio n a l B a n k
D EN N IS F. G L A S S ,
Vice President
Trust Investment Division
ROBERT C . H A N SE N ,
Vice President
Trust Operations Division
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4-
AND TRUST COMPANY OF CHICAGO/LA SALLE AT WASHINGTON
FRA NKL IN 2 - 9 2 0 0 ME MBER FEDERAL DEPOSIT IN S U R A N C E CORPORATION
•n
5
B u rro u g h s E arn in gs U p
B u rro u g h s C orporation, D etroit, re
p o rted n et earn in g s for 1961 to be $10,489,369, a n i n
crease of 14 p er
cent over 1960.
R ay R. E p p ert,
p r e s i d e n t , s a id
t h a t w orld-w ide
r e v e n u e reached
a new high for
th e 12th consecu
tive year, to talin g
$401,210,737.
Incom ing orders
R. R. E P P E R T
in 1961 am ounted
to $422,569,000 com pared w ith $400,•Kk 581,000 in 1960.
O ld est F in an cial J ou rn al W est o f th e M ississip p i
for your MARCH, 1962, reading
68th Year
No. 896
H arris B an k P r o m o tio n s
*
+
y
*
T hom as G. Cobb w as nam ed vice
p resid en t in th e b an k in g d ep artm en t
of th e H a rris T ru st and Savings Bank,
Chicago, last m onth. He w as fo rm er
ly an a ssista n t vice president.
The b an k also announced the elec
tion of six new a ssista n t vice p re si
dents: T. H. H arley, N. R. K arow and
F. B. Thom as, ban k in g dep artm en t; J.
S. D unhill, P. E. M ontgom ery and W.
H. Spitler, tr u s t departm en t.
The new H a rris B ank officers in
clude R ichard C. Kowal, Miss Molly M.
K ram er, George J. Popp, Jr., F ra n k
M cNair Sims, W allace G. W eisenborn
and David L. W ebber, a ssista n t cash
iers; R ichard A. Miller, a ssista n t au d i
tor, and Jam es M. Roach, Jr., and
H ugh A. Solvsberg, a ssista n t secre
taries. W illiam L. F o rsy th , Jr., w as
nam ed m anager, b u y in g departm en t,
w ith th e H a rris B ank rep resen tativ es
in New Y ork City.
EDITORIALS
18
A c ro s s th e D e sk fro m th e P u b lis h e r
FEATURE ARTICLES
13
23
24
F ro n tis p a g e
T o d a y ’s P r o f it D ile m m a — C ourtenay C. Davis
S h o u ld W e H a v e a n I n s t a ll m e n t L o a n D e p a r tm e n t?
26
27
M o re P r o f its f o r S m a lle r B a n k s — P a n e l R e p o r t
Y o u r I n s t a ll m e n t C r e d it D e p a r t m e n t . . . a n d R e g u la tio n “ Q ”
— Jam es E . B row n
— K e ith G. Cone
ANNUAL BOND AND INVESTMENT REVIEW
28
30
G o v e rn m e n t P o r tf o lio P o lic y . . . in l ig h t o f h i g h e r s a v in g s i n
t e r e s t r a t e s — D avid G. Taylor
S u p p ly a n d D e m a n d S till R e g u la te B o n d , S to c k M a r k e ts
31
32
I n v e s tm e n t O p p o r tu n itie s in C o m m e rc ia l P a p e r — Donald G. R eid
S a v in g s a n d th e M u n ic ip a l B o n d M a r k e t O u tlo o k f o r 1962
— R aym ond T rigger
— A N o r th w estern B a n k e r S u rvey
STATE BANKING NEWS
e*If va§hf- T e lle r 99
M in n e s o ta N e w s
63
T w in C ity N e w s
68
S o u th D a k o ta
S io u x F a l ls
N o r t h D a k o ta
M o n ta n a
C o lo ra d o
N ew s
N ew s
N ew s
N ew s
N ew s
71
73
74
76
79
80
83
86
88
97
98
110
W y o m in g N e w s
N e b ra sk a N ew s
O m aha N ew s
N e b r a s k a B a n k e r s V is it
W a s h in g to n O fficials
L in c o ln N e w s
Io w a N e w s
D es M o in e s N e w s
OTHER FEATURES
116
118
118
B a n k e r s ’ M a r k e t P la c e
In d e x o f A d v e r tis e r s
In th e D ir e c to r s ’ R oom
NORTHWESTERN BANKER
306 15th Stree t, Des Moines 9, Iowa, Telephone C H erry 4-8163
'
*
AU TOM ATIC B A N K IN G — C ustom ers u s
in g F i r s t N a tio n a l C ity B a n k ’s b ra n c h a t
42nd S tre e t a n d L e x in g to n A v en u e, N ew
Y o rk , can m ake d e p o sits now w ith o u t
s ta n d in g in lin e a t a te lle r ’s w indow . A
n e w a u to m a tic d e p o sit m ac h in e, first in
s ta lle d b y a n y b a n k , a c c e p ts a n d p h o to
g ra p h s d e p o sits of cash a n d checks, r e tu r n
in g a v a lid a te d d e p o sit re c e ip t to th e
custom er.
C itib a n k e r, D orothy M artin, e x p la in s
m a c h in e ’s o p e ra tio n to a cu sto m er. T he
b a n k calls it “ R e a d y -T e lle r.”
P ublisher
Clifford De Puy
A ssociate P ublisher
Malcolm K. Freeland
A ssociate E d ito r
W alter T. Proctor
A d v e rtisin g A s s ista n t
Elizabeth Cole
A ssociate E d ito r
Doyle Minden
C irculation D e p a rtm e n t
Lena Sutphin
Field R e p re se n ta tiv e
AI Kerbel
E d ito r
Ben J. H aller, Jr.
A u d ito r
Bertha Soderquist
F ield R e p rese n ta tiv e
Paul Masters
Frank P. Sym s, Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126
Milton P. Bock, Vice President, 654 Baker Building, Minneapolis, FEderal 6-5357
DE PUY PUBLICATIONS: Underwriters Review, Northwestern Banker,
Iowa-Nebraska Bank Directory
No rthw e ste rn Banker, M arch, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
6
■' '
B
we^fi analyze your portfolio— and make constructive
suggestions concerning your investments.
^XONALcy
FIRST NATIONAL CITY BANK, o f course !
M em ber Federal Deposit Insurance Corporation, naturally
YO**>
N o rth w e ste rn Banker, March, 7962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
"T
7
Aut o-Eianker Snorkel Proves
Sueeessfut for 11iseonsln Hank
>1$ YOU READ W IS ...
MILLION
READERS OF
K ID S LO VE IT — T he c u sto m e rs u n its o f th e new a u to -b a n k e r sn o rk e l sy stem a t th e
F i r s t N a tio n a l B a n k o f W a u k e sh a , W isco n sin , p ro v e f a s c in a tin g to y o u n g ste rs.
F T E R five m o n th s of operation,
th e F irs t N ational B ank of W au
kesha, W is., re p o rts th a t its M osler
A uto-B anker S norkel in stallatio n has
m aterially reduced its p a rk in g p ro b
lem, helped b rin g in business, in
creased custom er service, and show s
resu lts in cost saving th ro u g h in
creased efficiency.
A
A uto-B anker S norkel w as developed
by T he M osler Safe Com pany and
m an u fac tu red by In te rn a tio n a l Tele
phone and T eleg rap h C orporation. It
consists of a specially en gineered com
b in atio n of television, voice com m uni
cation and p n eu m atic tube system
w hich provides drive-in b an k in g at
points sep arated from th e m ain b an k
building w hile th e teller rem ains
w ith in th e bank.
A ccording to Dave M ort, a ssista n t
vice p resid en t of th e F irs t N ational
B ank of W aukesha, A uto-B anker has
all th e ad v antages of stan d ard drive-in
w indow s plus being able to offer m ore
services because th e tellers are inside
th e m ain b an k building w ith all nec
essary records a t hand. Mr. M ort said
his b a n k offers drive-in service in
check cashing, com m ercial deposits,
saving account deposits and w ith d raw
als, m ortgage paym ents, ta x and in
su ran ce escrow paym ents, C hristm as
Club deposits, m oney orders, telephone
bills, ca sh ier’s checks, safe deposit
ren tal, and change m aking.
W ith fo ur A uto-B anker units, the
F irs t N ational B ank serves an av e r
age of 357 custom ers daily in its Auto
B ank, M onday th ro u g h T hursday. On
F ridays, th e volum e is h ig h er w ith as
m any as 85 p er h o u r being served
from 5 to 8 p.m.
TIME • NEW SW EEK
U.S. N EW S& WORLD REPORT
HOLIDAY • NEW YORKER
NATIONAL GEOGRAPHIC
SPORTS ILLUSTRATED
WITH MONEY TO SPEND
ARE BEING REACHED WITH
THIS MESSAGE
New E*lan for Correspondents
M
R. CROSBY K E M PE R , SR., ch a ir
m an of th e C ity N ational B ank
and T ru st Com pany, K ansas City, has
announced plan s to offer co rrespond
e n t ban k s in th e im m ediate tra d e
te rrito ry , new services in th e h a n
dling of dem and deposit accounting.
The in stallatio n of City N atio n al’s
new E lectronic D ata P rocessing Cen
te r w ith in th e n e x t th ir ty days w ill
enable dem and deposit accounting to
be carried out by City N ational on
item s received d u rin g th e n ig h t and
delivered back to th e corresp o n d en t
p rio r to b an k opening th e follow ing
m orning. All City N ational co rre
spondents in an area w hich p erm its
daily pickups and deliveries w ill be
offered th is service w hich will also
provide th e correspondents w ith in
form ation relativ e to th e ir accounts,
p reviously unavailable.
F in a l te sts have been com pleted on
th e b a n k ’s E lectronic System w hich
w ill be installed in recen tly com pleted
new q u a rte rs on th e fifth floor of th e
b an k building. Once com pleted, City
N ational w ill be th e first K ansas City
b an k to m ake these services available
to th e ir correspondents in th is area.
A date w ill be announced in the
n e a r fu tu re for a m eeting designed to
fully acq u aint City N ational’s co rre
spondents w ith th e details and m any
tim e-saving advantages of th is new
service.
. . . DOES YOUR BANK OFFER
THESE PRESOLD CHECKS WITH
• 90% Selling Commission
• Choice of Wallet Colors
• Free Sales Aids
F IR S T
N A T IO N A L C ITY
BANK
Member Federal Deposit Insurance Corporation
N o rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
8
-s
+•
£
one p o in t of view. You can ’t get th e com plete co rresp o n d en t ban k in g
*
p ictu re from a N ew York skyscraper. T h a t’s w hy our N ational D ivision
officers visit every region of th e natio n reg u la rly —to discover first h a n d th e
/i
precise needs of correspondents. It is an essential p a rt of th e M an u factu rers
H an o v er p lan to w ork creatively w ith its correspondents.
M ANUFACTURERS HANO VER TR U ST
N EW YORK
M em ber Federal D eposit In su ra n ce C orporation
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
i-
9
Elect
tinea
Hankerthan'man
Of I*uItlie ISelutions School
HOMAS O. COOPER, presid en t of
th e Jefferson State Bank, Jeffer
son, Iowa, has been elected chairm an
of th e board of m anagers of th e School
of F in an cial Public Relations. He had
served as a m em ber of th e board, the
school’s governing body, for th e p ast
tw o years.
The school, now in its 15th year, is
sponsored by the F in an cial Public R e
lations A ssociation in cooperation
w ith N o rth w estern U n iv ersity and
T
Perspective
... the capacity to view things
in sound relation to the needs
of the banks we serve—typifies
the work of our National Divi
sion officers.
Maintaining close communica
tion at the local level, with
nearly 4,000 correspondent
banks is an essential part of
our working philosophy. For
example:
Last year our officers spent more
than 4,000 days calling on banks,
large anti small, in every section of
the country— from Albuquerque
to Zanesville.
An intim ate knowledge of
correspondent objectives, ob
tained at the source, enables
our National Division officers
to draw upon the experience
and resources of Manufacturers
Hanover—one of the nation’s
largest banking organizations
—to find sound, workable an
swers to specific needs.
Getting the facts—first hand—is
one of the ways Manufacturers
Hanover works creatively with
its correspondents.
MANU FAC TU R ER S
HANOVER TRUST
N E W
Y O R K
T. O. C O O P E R
R. L I N D Q U I S T
provides a post-graduate level p ra c ti
cal education in public relations, ad
v ertisin g , and business developm ent
for executives from financial in stitu
tions all over the country. F PR A is
a n ational organization of ap proxi
m ately 3,000 executives from these in
stitutions. Now in its 15th year, th e
school has approxim ately 600 g rad u
ates and th is y ear it w ill en ter an
accelerated grow th era because of a
recen t decision to expand facilities to
p erm it a 100 per cent increase in th e
size of its stu d e n t body. T his sum
m e r’s session, half of th e school’s four
w eek resid en t p rogram w ill be in ses
sion Ju ly 8-21 on th e N o rth w estern
U n iv ersity Chicago cam pus.
R obert L indquist, vice presid en t of
th e H a rris T ru st & Savings Bank, Chi
cago, and director of th e school, re
cently announced th a t m ore th a n 50
applicants have already accepted to
atten d th is su m m er’s session are from
32 states and P u erto Rico. The stu
dents re p re se n t in stitu tio n s ran g in g
in size from $3% billion to below $900,000.
A pplications and th e school’s cata
logue m ay be req u ested from F in a n
cial Public R elations A ssociation, 231
S. LaSalle Street, Chicago 4, 111. M em
bers and non-m em bers of FPR A are
equally eligible to attend.
FPRA "Plan for P rofits" at
Chieaifo Rei/ional. A pril 3 0
M PH ASIZING the need to do “A d
vance P lan n in g for Added P ro f
its,” th e F inancial Public R elations
A ssociation has scheduled a series of
regional m eetings th is spring to help
m em bers of financial in stitu tio n s com
pete m ore vigorously for th e dollar.
B ankers located in th e m iddlew este rn states w ill be p a rticu larly in te r
ested in the regional m eeting sched
uled for the Chicago-Sheraton H otel
in Chicago on A pril 30. The m eeting
is open to F P R A m em bers and non
m em bers alike. C hairm an w ill be
R obert O’Toole, vice president, P u ll
m an T ru st and Savings Bank, Chi
cago. R equests for specific inform a
tion should be directed to his a tte n
tion. O ther regional m eetings w ill be
held in Buffalo, New York, A pril 25,
and in San Francisco, May 4.
E ach of th e one-day m eetings will
featu re a sym posium at w hich F P R A ’s
natio n al officers w ill discuss th e p a rt
of p lan n ing in cam paign strateg y
aim ed a t b rin g in g financial in stitu
tions closer to v icto ry on th e profit
front. Speakers w ill be: F P R A F irs t
Vice P re sid en t E rn e st G. G earhart,
E
Jr., vice president, F irs t N ational
Bank, Miami, Fla., “P lan n in g for
Staff Selling”; Second Vice P resid en t
H arold W. Lewis, vice president, The
F i r s t N a t i o n a l B ank of Chicago,
“P lanning a C ustom er Call”; T hird
Vice P resid en t C harles H. Hoeflich,
president, Union N ational B ank and
T ru st C o m p a n y , Souderton, Pa.,
“P lanned P u b licity ”; and T re a su re r
R obert A. Bachle, vice president, N a
tional B o u l e v a r d Bank, Chicago,
“P lan n in g th e A dvertising B udget.”
V ernon Schw aegerle, F P R A ’s E xecu
tive Vice P resident, w ill tell “The
F P R A Story.”
The com plete p rogram for th e Chi
cago m eeting w ill be featu red in th e
A pril issue of T he N orthw estern
B anker .
W est Coast D ir e cto r
R obert W. Cahill, p resid en t of Ca
hill C onstruction Company, has been
elected a m em ber of th e board of th e
B ank of California in San Francisco.
He is also a director of th e Di Giorgio
F ru it Company.
N o rthw estern Banker, March, 196Z
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
10
¡Han M emorial to A. I*. lìiannini
for use with TUBULAR WRAPPERS
Saves time and speeds up co u n tin g of
pennies, nickels, dimes, quarters and halves.
Just push tu b u la r wrapper up inside of
Bakelite stem, holding bottom closed with
finger. Count coins into hopper. Pull wrapper
from bottom and crimp ends. In five sizes.
A. P. G IA N N IN I M EM O RIAL B R A N C H — A fittin g m em o rial to th e la te A. P . G iann in i in th e fo rm o f th is n ew b ra n c h of th e C a lifo rn ia-w id e b a n k he fo u n d e d , th e B a n k
of A m e ric a, w ill be e re c te d in his hom e c ity of S a n M a teo th is y e a r. P la n s f o r th e
b ra n c h w e re a n n o u n c e d in S a n F ra n c is c o b y th e b a n k ’s p re s id e n t, S. Clark B eise. A s
show n in th e a r c h ite c t’s s k e tc h abo v e, th e b a n k in g office, to be k n o w n a s th e A. P .
G ia n n in i b ra n c h , w ill be a c c e n te d w ith s ta te ly w h ite q u a rtz colum ns a n d a p o rtic o .
B e n e a th th e p o rtic o , acro ss th e g ra n ite p a n e l fa c e o f th e b u ild in g , a co lo rfu l, 25-foot,
p a n o ra m ic m u ra l e x e c u te d in m o siae tile w ill d e p ic t d ra m a tic e v e n ts in th e h is to ry of
th e b a n k a n d th e p a r t i t h a s p la y e d in C a lifo rn ia ’s d e v e lo p m e n t since its fo u n d in g in
1904. A s a tr ib u te to G ia n n in i’s confidence in C a lifo rn ia a n d a ll i t s c itiz e n s, th e in te rio r
o f th e b ra n c h w ill h a v e a n o a k -p an e le d c o m m u n ity se rv ic e room , “ T he S ev en O aks
Room ,” n a m e d a f te r th e b a n k e r’s su b u rb a n fa m ily hom e in S a n M ateo .
L aS alle P r o m o te s T h ree
SE A L P R E S S a n d
L E A D SEALS
Twice the leverage, half
the weight (weighs only
17 ozs.), with this Seal
Press! Makes p e rfe ct
die im p re ssio n when
deform in g seal. Lead
S e a l s a re d ie c a s t
from virgin lead. Seals
s u p p lie d with p in s
in varying lengths.
COIN PACKAGING TRAY
Convenient for
h a n d - fillin g
T hree prom otions at LaSalle N a
tional B ank, Chicago, w ere announced
l a s t m onth by
H a r o l d Meidell,
ch airm an of th e
board and p resi
dent, follow ing a
d irecto rs’ m eet
ing.
Lew is C. H an
son, Jr., w as p ro
m oted from as
sista n t cashier to
a s s i s t a n t vice
president. Thom-
Tubul ar
Wrappers.
Possesses
three grooves
to accommodate all diameter coins.
A handy item you will use daily.
TELLER’S MOISTENER
Speeds up Teller’s counting
and banding of currency.
M oisture for finger tips,
capillary pad for Bill Straps,
in just the right amount of
moisture. Made of plastic,
in rich mahogany fin ish .
SPONGE FOR FINGERS
PAD FOR BILL STRAPS
SHI PPING TAGS
Made of linen for extra
strength. 3 sizes: 2%" x
6t*" with stub; same size
with blank stub; 2?g"x43i"
without stub. Reinforced
eyelet to edge of Tag. Printed red, black
r ^ C .L D O W N E Y
G o -m fM z n y
HANNIBAL, MISSOURI
Dept. W
W o rld 's L a rg e s t M a n u fa ctu re rs
o f C o in H a n d lin g S u p p lie s
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T . M . K IN G
R. O. P O H L
as M. K ing and R obert O. Pohl w ere
nam ed assista n t cashiers.
Mr. H anson joined LaSalle in
M arch, 1959 and serves in th e b a n k ’s
co rresp o ndent b an king division as its
re p re se n tativ e in Indiana. He is a
resid en t of C larendon Hills, Illinois.
Mr. King, also a m em ber of th e
co rresp o ndent b an k division, serving
th e Chicago and n o rth e rn Illinois area,
joined LaSalle in Septem ber, 1961. He
h ad previously been associated for a
n u m b er of years w ith th e N ational
Cash R egister Com pany and lives in
LaG range, 111.
Mr. Pohl, a m em ber of Loan D ivi
sion A, joined th e b ank in October,
1961, h aving previously served an-
o th er Chicago b an k and D un & Bradstreet.
The b an k recen tly received favor
able approval from its stockholders to
increase th e n u m ber of sh ares of capi
tal stock from 165,000 $25 p ar value
to 500,000 sh ares of $10 p a r value. This
financing, to g eth er w ith tra n sfe rs from
undivided profits, w ill increase the
capital and su rp lu s of the b ank from
$9 m illion to $12.5 m illion.
*
v
f
^
C h em ical B an k E le c tio n
t-
Joseph A. M cFadden has been
nam ed senior vice presid en t of Chem i
cal B ank New Y ork T ru st Company,
New York, according to H arold H. *
Helm , chairm an.
He joined th e b an k in 1929 upon his
g raduation from th e W h arto n School,
U n iv ersity of P ennsylvania. He becam e assistan t secretary in 1940, as
sistan t vice p resid en t in 1946, and vice
presid en t in 1949.
In his new position he w ill continue
to supervise th e b a n k ’s credit division *
and assist H ow ard W. McCall, Jr., vice
ch airm an and chief loan officer, in the
ad m in istratio n of th e b a n k ’s loan p o rt
folio.
>7
W estern -S o u th ern In crea se
More th a n $1,029,000,000 in new busi
ness du rin g 1961 w as rep o rted by Wil- ,,
liam C. Safford, presid en t of th e W est
ern and S outhern Life In su ran ce Com
p any in Cincinnati.
A ssets in 1961 increased $65,517,404
to a to tal of $1,124,695,258, and insur- Hance in force is now $5,529,592,622. S u r
plus to policyholders w as increased by
$7.3 m illion b ringing th e to tal to $81,410,354. T he com pany is active in the
cred it life field, in additon to offering
a w ide selection of o rd in ary life poli
cies.
1
11
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N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
12
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Iowa’s Favorite
Correspondent
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as indicated by the
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CENTRAL
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1
National Bank and Trust Company
5th and Locust --Phone CHerry 3-8181
DES MOINES,IOWA
i
Member Federal Deposit Insurance Corporation
4
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
i
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
14
A
V
*fr Executives in St. latitis
HE board of directors of M ercan
tile T ru st Com pany, St. Louis, in a
m eeting last m o n th announced th a t
K enton R. Cravens, hereto fo re p resi
d en t of th e bank, w as elected c h a ir
m an of th e board and chief executive
officer, succeeding Sidney M aestre w ho
w as elected ch airm an of th e executive
com m ittee, rep lac
ing H ord H ard in
w ho is retired. A t
t h e s a m e tim e ,
J o h n Fox, for
m erly a s e n i o r
vice p r e s id e nt ,
w as elected p re s
ident.
Mr. C r a v e n s ,
w ho has been a
com m ercial b a n k
K. R. C R A V E N S
er s i n c e 1938,
T
S. M A E S T R E
J. F O X
joined th e M ercantile-Com m erce B ank
and T ru st Com pany (a predecessor of
M ercantile T ru st Com pany) as vice
p resid en t in charge of th e banking
loan divisison in 1943. In 1953, he left
th e b an k to accept th e post of adm in
istra to r of the R econstruction F inance
Corporation. He directed th e liquida
tion of th e agency, resigning in M arch,
1954, to re tu rn to M ercantile. He w as
elected presid en t of the b ank in April,
1954.
Jo h n Fox, new M ercantile president,
has been w ith th e b ank since 1933
w hen he served as secretary to the
president. In 1938, he w as appointed
an a ssistan t cashier and tw o y ears
later, sp ent seven m onths as an ex
change officer w ith th e Banco N acion
al de Mexico in Mexico City. In 1943
he w as m ade an assistan t vice p resi
dent, becam e a vice presid en t in 1946,
and in 1955 w as elected senior vice
p resid en t in charge of th e b a n k ’s com
m ercial lending operations.
Sidney M aestre, new ch airm an of
th e executive com m ittee, recen tly re
ceived added natio n al recognition in
th e field of b anking w hen he w as ap
pointed as a m em ber for 1962 of the
F ed eral A dvisory Council of th e F ed
eral R eserve System .
Consecutive
dividend paym ents
for
years
W rite for Annual Report
AND LIGHT COMPANY
Des Moines 3, Iowa
Now serving 25 counties in Iowa
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. M aestre began his business care e r in 1911 as clerk for C runden M ar
tin M anufacturing Company, m oved
to M ercantile T ru st Com pany in 1912,
to S tern Bros, in K ansas City in 1917, ^
and re tu rn e d to M ercantile T ru st Com
p any in 1919 as vice presid en t in
charge of th e bond departm ent. In
1929, in th e m erg er of th e M ercantile
T ru st Com pany and th e N ational B ank y
of Commerce, he becam e p resid en t of
M ercantile-Com m erce Company. In
1931 he w as elected presid en t of the
M ississippi V alley T ru s t Company, H
and in 1951 becam e ch airm an of the
board and chief executive officer of
th e M e r c a n t i l e T r u s t Company,
form ed by th e consolidation of the
M ississippi V alley T ru st Com pany ■
and th e M ercantile-Com m erce B ank
and T ru st Company.
T rust P r o m o tio n s
»
S tu a rt L. M urdock, a tru s t in v est
m en t officer w ith City N ational B ank
and T ru st Company, K ansas City,
since 1957, has been prom oted to vice
y
president.
O ther prom otions announced ine l u d e d H. L.
L a rry M iller, who
w as nam ed con ¥
sultant to t h e
tr u s t departm ent;
Jo seph S. Davis,
Jr., to p e r s o n a l
t r u s t officer; W. <
W. Schm idt and
F ra n k R. T erry,
to a ssista n t p e r
s o n a l t r u s t offi w
S. L . M U R D O C K
c e rs; R e u b e n
Short, to a ssistan t corporate tru s t offi
cer, and W illiam V. P ru e tt and C lar
ence V. Lee, to a ssista n t tru s t investy
m en t officers.
L aM onte R e tir e m en t
George LaM onte & Son, m an u factu r
er of Safety P ap er for checks, has an
n o u n c e d t he r e
t i r e m e n t of C.
Stewart R i c h
mond, Chicago
d istric t sales m an
ager.
A grad u ate of
W illiam s College,
M r. R i c h m o n d
joined George La
M onte & Son as a
s a l e s re p re se n ta
tive in A u g u s t ,
1927. He w as appointed d istrict sales
m anager in 1948.
LaM onte re p resen tatio n in the te r
rito ry w ill be continued by R obert P.
O’Connor and Jo h n S. P orterfield from
th e ir office in th e F irs t N ational B ank
B uilding, 38 South D earborn Street,
Chicago.
*
Hr
A
y
*
1
15
Says William S. Hildreth:
"Chase M anhattan Cash Letter Service? F irst Hate!
We spotted Vice President William
H. Siddons, Jr., showing Chase Man
hattan’s big and busy check process
ing operation to William S. Hildreth,
Chairman, Peoples National Bank of
Charlottesville, Va. Asked his opinion
of the way Chase Manhattan has been
handling his bank’s cash letters, Mr.
Hildreth told us:
“First rate . . . suits us just fine.
Beats me how you people get the job
done so fast. Sometimes I think you
must use rockets! By the way, did
you know our Bank has been doing
business with Chase for over seventy
years?”
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Providing the kind of correspon
dent service that makes steadfast
friends is an old story at Chase Man
hattan. For example, the people in the
Check Processing Department over
look nothing, short of rockets, to
make sure each correspondent’s
checks are collected in the quickest,
most direct way. Special considera
tion for individual problems is avail
able on all correspondent services at
Chase Manhattan.
In Chase Manhattan’s new and ex
panded head office facilities, we ex
pect to get things done even faster
and better for Peoples National Bank
. . . and all the other banks that use
Chase Manhattan as their New York
correspondent.
THE
^
CHASE
MANHATTAN
BANK
C H A R T E R E D IN 1799
1 Chase Manhattan Plaza,
New York 15, New York
Member Federal Deposit Insurance Corporation
N o r th w e s te r n Banke r, M arch, 1962
16
Executives Announce
E T IR E M E N T of H orace C. F la n
igan and W illiam S. G ray from
R
top m an agem ent positions of M anu
factu re rs H anover T ru s t Com pany,
New York, as of D ecem ber 1, 1962, w as
disclosed a t th e b a n k ’s a n n u al m eet
ing.
Mr. F lan ig an is ch airm an of th e ex
ecutive com m ittee an d Mr. G ray is
ch airm a n of th e finance com m ittee.
B oth have h ad long b an k in g careers.
Mr. F lan ig an , w ho becam e a vice
p resid e n t of M an u factu rers T ru s t in
1931, w as nam ed ch airm an and chief
executive officer in 1956. W ith the
m erg er of th e b an k w ith The H anover
B ank last Septem ber 8, he w as elected
ch airm an of th e m erged in stitu tio n ’s
executive com m ittee.
Mr. Gray, a b an k p resid en t at the
age of 35, joined th e th e n C entral
U nion T ru st Com pany as a vice p res
id en t in 1925. W hen C entral U nion
m erged w ith The H anover B ank in
1929, Mr. G ray continued as a vice
p resid en t u n til his election as p resi
dent of C entral H anover B ank and
T ru st Com pany in 1933. He becam e
ch airm an in 1950, and one year later
th e b an k sh o rtened its nam e to The
H anover Bank. W hen M anufacturers
and H anover m erged, Mr. G ray w as
elected ch airm an of th e finance com
m ittee.
C harles J. Stew art, M an u facturers
H anover T ru st chairm an, said the
posts held by Mr. F lan ig an and Mr.
H . C. F L A N I G A N
w.
*
y
S. G R A Y
G ray w ould n ot be filled as of th e date
of th e ir retirem en ts. B oth Mr. F la n i
gan and Mr. G ray w ill continue as
directors.
y
N am e N ew Y o rk D ir e cto r
W illiam M. B atten, presid en t and
chief executive
officer of J. C.
P en n ey Company,
w as appointed a
director of F irs t
National C i t y
B a n k in New
Y ork last m onth.
Mr. B atten began
his career in 1926
as an ex tra sales
m an with t h e
W. M. BATTEN
r
<
t
com pany.
C o n tin en ta l P r o m o tio n s
D irectors of C ontinental-Illinois N a
tional B ank & T ru st Company, Chi
cago, have prom oted eight officers and
elected four others, all in th e com m er *
cial b anking and tru s t departm ents.
In th e tru s t d ep artm ent, M. McAllis
te r Clarke, N orm an W. Reed and
P hilip J. D am bach w ere prom oted to Y
vice presidents. Mr. Clarke and Mr.
Reed had been second vice presidents,
and Mr. D am bach w as a tru s t officer.
P rom oted to second vice presidents
from tru s t officers w ere P. Jordan A
Ham el, R ichard L. M errick and F ra n k
M. W right, Jr.
In th e com m ercial b anking d ep art
m ent, tw o form er a ssistan t cashiers - f .
w ere nam ed second vice presidents.
T hey are R alph W. A belt and Bruce
B enner, Jr. D irectors also elected
R ichard E. D elaney a second vice p res
ident, and K en n eth K. Chalm ers, Ger A
ard M. K eeley and W illiam G. Marquardt, a ssistan t cashiers in th e com
m ercial departm ent.
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
'I
J. Harry Arnold, president,
Leominster Savings Bank,
Leominster, Mass.
.............. I
_
Both inside and out, the design
of Leominster Savings features clean,
classic lines that wear well with time.
. .the plans stirred a lot
of com m unity interest"
Says J. H arry A rnold, president, Leominster Savings Bank,
Leominster, Mass.: “The public relations value of our new quar
ters has been a source of much satisfaction. Right from the start,
when we signed a contract with Bank Building Corporation in
’57, the plans stirred a lot of community interest. And when
the ‘sidewalk superintendents’ saw the very handsome, contem
porary building taking shape, you could feel they were sharing our
pride in the project. The good will and prestige generated by
this building have been important factors in our progress.”
When a banker invests in new construction, “public relations”
vitally affects the planning. With hundreds of thousands of dollars
likely at stake, he wonders, “Will this building create an enduring
impression of progress, efficiency, beauty . . . or be just another
new building?” That’s why it pays to consult early with Bank
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
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18
A
CDsucw QamsiA, j?.
Com ptroller of the C urrency,
W ashington, D. C.
In your recent letter to the Board of Governors
of the Federal Reserve System you discuss bank
mergers in New York State and then say:
Cdsictic VYl. TVUm/wsL JdmbjmL:
Vice P resident, A m erican B ankers A ssociation, and
Chairm an, F irst N ational B ank, Thomson, Georgia.
In President Kennedy’s Budget message, he
said, “the tax-deductible reserve provisions appli
cable to mutual savings banks and savings and
loan associations should be amended to assure
nondiseriminatory taxation among competing
financial institutions.”
Commercial banks should not be placed at a
disadvantage with savings and loan associations
under our tax laws, and it is to be hoped that
this session of Congress will remedy that situation.
As you have pointed out, Mr. Kimbrel, “In 1960
savings and loan associations paid less than 1 per
cent of income in taxes, while commercial banks
paid about 35 per cent. For example, in Wisconsin
in 1960 the average payment by commercial banks
in Federal income tax was $27,500. The 1960
average for savings and loan associations was
$ 100 .”
At the present time the House Ways and Means
Committee has before it the so-called “tax package”
which among other things contains these two fea
tures :
1. Tax uniformity among competing financial
institutions, which the AB A favors.
2. Mandatory tax withholding on dividends
and interest, which the AB A opposes.
The problem is to separate these two proposals
and include the first one and eliminate the second
one.
As you put it, Mr. Kimbrel, “the job we would
like to perform is pulling withholding out of the
package without upsetting the whole measure.”
It is certainly unjust to permit “the $118billion mutual savings industry to continue to
operate virtually tax free,” as Sam M. Fleming,
president of the ABA, has emphasized.
N o rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
“It is regrettable that the law of New York, as
well as the laws of many other States, artificially
inhibit normal, proper, and publicly beneficial
growth and expansion through branching, and
consequently require undue reliance on means
other than branching. It is these various, myriad,
unhealthy State statutes which generate undue re
course to unusual means in order in some way to
accommodate banking growth and expansion to
the economic realities and economic forces of mu
tinies which will not over the longer term permit
artificial containment.”
V
Then in your last paragraph is this statement:
“The Bank Holding Company Act should also
be amended in at least two major respects: (a)
to make clear that this Act supersedes all State
Statutes now or hereafter in force, and (b) to
eliminate exemptions presently in the Act so as—
inter alia—to assure that no organization owning
banks is free of regulation pursuant to the Act as
is presently the case.”
The N o r t h w e s t e r n B a n k e r is opposed to two
of your propositions and we believe:
1. States have a right to pass banking laws they
believe are in the best interests of their citizens,
and we do not believe they can be classified as
“unhealthy State Statutes.”
2. Also, your office should not use its influence
to have laws passed which would, “supersede all
State Statutes now or hereafter in force.”
There are 8,772 state banks out of a total of
14,017 banks in the United States whose officers
may still endorse “states rights” and who do not
wish to have the steam roller of any national legis
lation take away their prerogatives of state bank
ing legislation.
A
19
Approxim ately 95,000,000 Am ericans will take vacation trips
of at least three days during 1962, at a cost that will exceed
21 billion dollars. Vacation Club plans a vaila b le through
local financial institutions make many of these trips possible.
Getting to know you”
the third step
When this family learned the value of regular
weekly savings through Christmas Club mem
bership, they took their first step toward the
achievement of their financial goals. The second
step was inevitable . . . the proper use of all the
services of their local financial institution.
Now they are enjoying the third step . . . a
happy one for them and a profitable one for you.
They have learned, along with millions of others,
th a t their “vacation pay” somehow never gets
set aside for vacations. Rent, food, taxes, utili
ties, insurance take care of that. So they joined
Vacation Club, still another service they learned
about after getting to know you.
Won’t you get to know us and the services we
offer? For over fifty years our services have been
helping financial in s titu tio n s to know th e ir
customers better. Ju st drop a note and we will
arrange for a staff member in your area to con
tact you. No obligation, of course.
SEND FOR OUR FREE BOOKLET ON VACATIONS AND
THE VACATION CLUB PLAN
ífjrtótmas Club
Photograph courtesy o f
the N e w Yo rk S a v in g s Bank
HEADQUARTERS FOR MEMBERS OF
AhjisfmasJlIuft
• SPONSORED BY THE INCORPORATE0 ORGANIZATION CHRISTMAS CLUB
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ORIGINATORS OP THE CHRISTMAS CLUB PLAN
# P A Y M E N T
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230 Park Avenue, New York, N. Y.
Founded by Herbert F. R a w ll
Builds Character • Builds Sa vin gs • Builds Business for Financial Institutions
N o rth w e ste rn Banker, M arch, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-
N o rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
■ ■.
21
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in the finest bank equipment for more than a
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New Diebold Bank Counter Equipment literature
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DIEBOLD, INCORPORATED
Canton 2, Ohio
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SAFE COMPANY
In Canada: Diebold of Canada, Ltd., Toronto • Ahern Safe Co., Montreal
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
H o rth w e ste rn Banker, March, 1962
22
A
Y
Class 41 Proof Machine
with NCR 480
Amount Encoder
MICR encoding...
'V
■WI
■V:WY N
__
WHY do more banks use NCR encoding equipment
than any other kind?
Y
BECAUSE
NCR
PR O VIDES
Accuracy of imprinting
Reliability of MICR impression
Flexibility in the “ON US” field
MICR imprinting for all fields
Adaptability to existing NCR units
Wide range of “parent” units
Economy of exclusive NCR magnetic ink ribbon
Class 2000
NCR Proof Machine
with NCR 480
JL
And NOW—
NCR 450 Proof Machine
with simultaneous imprinting
of FRD-ABA and Amount
as a by-product
of the proving operation.
A sk y o u r N CR re p resen tativ e w hy m ore th a n 2,500 NCR A m o u n t
E n c o d e rs a n d 1,000 Q u a lific a tio n E n c o d e rs h a v e b e e n so ld to
banks! He know s y o u r B a n k e rs’ C om m on M achine L an g u a g e—
and w ill gladly an sw er y o u r encoding problem s. Call him T O D A Y !
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The N ational Cash R e g is te r Com pany — 1039 O ffic e s in 121 C o u n trie s — 78 Y e ars of H e lp in g B u sin e ss Save Money
NCR
.
INorfhwesfern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
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N 1942 W E sold w et cows in th e fall for $85 p er head.
At Om aha in Novem ber, 1951 (w hen fat steers sold up
I t took about eig h t of th ese cows to b u y a half-ton
to $40 and $41 th e re ), retail beef prices th e n prevailing
pickup tru c k th a t cost us ab o u t $650. Today th a t
th e re w ere 65 to 79 cents a pound for choice ro asts and
cow sells for about $150, w hich m eans it tak es about 18
steaks. C u rren t fat cattle top at Omaha is $25 for fat
of th em to b u y to d ay ’s tru c k w hich sells for about $2,800.
steers, w hile choice ro asts and steaks th e re are 89 cents
T he sam e d isp a rity occurs betw een n e a rly e v ery th in g
to $1.09 p er pound. W h a t’s m ore, although retail prices
w e buy and w h a t w e sell.
are still in line w ith a y ear ago, carcass beef a t w holesale
In m an y resp ects th e in te re sts of ra n c h e rs and cattle
(choice steer and heifer beef) is selling to th e re ta ile r at
feeders in th is problem are identical. Over th e long pull,
50 cents to $1 less th a n a year ago.
range cattle prices have been governed by fat cattle
W hen you look a t these com parative prices and the
prices. So, w h a t is good for th e cattle feeder is good for
ever w idening spread is it any w onder some of us ra n c h
th e ran ch er, and a fair price for our pro d u ct
ers are in terested in a tho ro u g h investiga
is th e b est m edicine for both.
tion?
B y COURTENAY DAVIS
One of th e m ain factors affecting th e longA nother factor vitally affecting th e longran g e outlook for cattle p rices is th e tr e
Rancher
range outlook for cattle prices is th e grow
m endous m onopolistic b u y in g pow er now
ing practice of certain packers and chain
H o r s e C r e e k W y o.
con cen trated in th e h an d s of the chain
stores to feed cattle for th e ir ow n account,
stores. W hile th e packing in d u stry has been
or to con tract w ith large com m ercial cattle
decentralizing, th e d istrib u tio n of m eat a t retail, w hich
feeders for the fu tu re delivery of fat cattle.
fo rm erly w as d ecentralized in sm all re ta il stores, has
These practices give certain packers and chains a con
sta n t supply of fat cattle in reserve to call on w henever
Ar been centralized in huge chain store operations.
the supply is sh o rt and prices s ta rt to rise. I t enables
Of th e 25 larg est food re ta ilin g o rganizations in th e
the packer or chain to w ith d raw from th e m a rk e t at w ill
U nited States, 13 are co rporate type chains and 12 are vol
and draw on th e ir own supply to m eet th e needs of th e ir
u n ta ry or cooperative chains. T his cen tralizatio n of th e
killing crew s, if th e m ark et is not to th e ir liking. T his
d istrib u tio n of m eat has sh ifted th e possible pow er to con
rem oves com petition and re stra in s trade, and as such
tro l or m an ip u late m eat prices from th e p ackers to th e
tends to m an ip u late prices.
chain organizations.
T his w hole problem of packer and chain store feeding,
The chains have found beef so im p o rta n t to th e ir com
chains g etting into th e packing business, th e leverage in
p etitiv e success th a t th e y build th e ir e n tire store around
the b uying pow er of chains in th e dressed m eat trad e
th e ir m eat d ep artm en ts. R ecent press releases indicate
th ro u g h th e ir pu rch asin g m ethods is unreg u lated at th e
th e U. S. D ep artm en t of A g riculture, u n d e r th e provisions
p resen t tim e. These trem endous aggregations of corpo
of th e P ack ers and S tockyards Act, finally is going to in
rate w ealth and pow er in th e hands of a few m en affect
v estig ate c e rta in practices of th e chain stores to d e te r
the daily lives of hu n d red s of thousands of individual
m ine if th e y are u sin g th e ir co n cen trated b u y in g pow er
ranchers* cattle-feeders and th e m illions of consum ers of
to th e d e trim e n t of livestock in te re sts or th e public.
m eat products in th is country.
I am not opposed to bigness as such, b u t to pro tect all
In th is proposed in v estig atio n th e profit or losses, the
those w ho are affected by these big en terp rises and to
m argins m aintained, and th e overhead of th e to tal oper
in su re fair play for all in th e com petitive free society, it
ation charged to th e m eat end of th e bu sin ess should be
seem s high tim e th a t ru les and law s should be enacted
fully in v estig ated and th e facts and figures opened to th e
u n d er w hich all can live and p ro sp er w ith o u t any one
public.
segm ent of th e in d u stry being allow ed to dom inate and
T he facts are clear th a t today th e re is th e larg est spread
exploit th e others.
in h isto ry b etw een w holesale beef prices and re ta il beef
G overnm ent in terferen ce in p riv ate in d u stry is n ot to
prices. In 1951 th e pro d u cer got 75 p er cent of th e retail
dollar, and today his sh are is less th a n 60 cents of th a t
TODAY’S PROFIT DILEMMA . . .
(T u rn to page 48, please)
sam e dollar.
I
,
Northw estern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
^1“
24
Should 11 e Have an Installment Loan
1 0 P o in ts to C on sid er o n T h is Im p o rta n t Q u estio n
ODAY, m any b anks in th e $5 to
$10 m illion deposit ran g e m ight
well consider th e ad v antages of
a separate in stallm en t loan d e p a rt
m ent and, as a m ajo r objective, an en
larged volum e of in stallm en t ty p e p a
per. The fact th a t a larg er pro p o rtio n
of th e deposits of th ese b an k s today
is in th e form of tim e deposits, a t a
cost of 4 p er cent, m akes th is a realis
tic and p ropitious h o u r to tak e a long
look at th e idea.
Obviously, th e re are m an y typ es of
in stallm en t loans and th e b an k w ill
have to consider w hich of th ese it
w ishes to offer. In th e farm in g areas,
a g ricu ltu ra l eq uipm ent can be financed
by such loans. A ppliance and fu rn i
tu re purch ases can also be financed;
th ere is, in addition, a trem endous
volum e of b u siness in personal loans.
T
I • Auto Dealer Financing-—As p a rt
of th is deliberation th e b a n k w ill be
attracte d to th e m erits of autom obile
dealer financing since th is m ethod is
capable of producing a large volum e
of in stallm en t co n tracts in th e sh o rt
est period of tim e.
W hile m any ad v antages can be a t
tained th ro u g h th e developm ent of
this typ e of business, including re la
tively a ttra c tiv e earnings, and low er
cost of acquisition, a cautious and
tho ro u g h approach to th is area of com
p etitio n is essen tial to success.
N ear th e fo refro n t in th e problem s
of dealer financing is th e co n stan t re
q u irem e n t of in tellig en t analysis of
th e dealer’s ab ility to survive and to
sell autom obiles on a profitable basis
to a satisfied clientele, w hich, in tu rn ,
produces sound in sta llm e n t p ap er for
th e bank.
My ow n b an k enjoys ou tstan d in g s
of appro x im ately $40 m illion in tim e
sales contracts, th e p rep onderance of
w hich re p re se n ts autom obile dealer
paper. O. W ayne F osher, th e vice
p resid en t in charge of th e in stallm en t
loan d ep artm en t, is w idely know n for
his leadership in th e field of autom o
bile dealer financing and it has been
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
m y p leasure to re p re se n t him and the
services of our in stallm en t loan de
p a rtm e n t to m any of our correspond
en ts w ho have entered th e field of
autom obile financing and w ho have
sought our assistance and guidance
from tim e to tim e. These services
have included the financing of excess
lines. My rem ark s here are based on
th is experience w ith bankers.
o
*■( • Study Trade Territory—W hen a
b an k ev aluates th e potential volum e
of in sta llm en t loan financing available
th ro u g h the facilities of an in stallm en t
loan d ep artm ent, it should consider
th e n a tu ra l trad e te rrito ry it will
serve, and w h eth er or not th is trad e
area is capable of p resen tin g an a t
tra c tiv e volum e of in stallm en t paper.
In m aking th is su rv ey it should con
sider: com petitive factors; th e supply
of services and products u su ally p u r
chased on credit, and th e practicable
area w ith in w hich it w ill be able to
m inim ize efficiently collection prob
lem s and losses.
Q
* J • Floor Planning — If th e dealer
rou te to volum e is adopted, th e bank
w ill probably face the req u est for floor
W ritte n E specially fo r
The N o rth w estern B a n ker
By
JAMES E.
BROW N
A ssistant
Vice P r e s id e n t
M ercan tile
T ru st C o m p a n y
St. L ouis
M isso u ri
M r. Brown has extensive experience in
consumer c re d it w ork, both in the sales
finance field p rior to entering com mercial
banking and w ith M erc a n tile Trust w here
he first w orked in the installm ent loan
dep artm en t. He is a member of the c o r
respondent bank departm ent.
plan assistance. W e believe th a t the
dealer is en titled to th is accom m oda
tion and we suggest to th e sm aller
banks w ith lim ited experience th a t
th ey look to th e ir city correspondent
for a supplem ental opinion of the
dealer’s financial stre n g th before the
floor plan req u est is g ran ted to any
sizable extent.
The large m etropolitan b an k w hich
services scores of dealer relationships
can often provide an enlightened an
alysis based on com parisons w ith
m any o ther re tailers selling th e sam e
type of car in o th er areas. If the
sm aller bank is to provide floor p lan
n ing and retail financing of th e deal
e r’s sales contracts, it m ust co n stan t
ly heed its loaning lim its, w hich, of
course, differ in m any cases, according
to state and n ational banking reg u
lations.
A correspondent b ank w ill often
provide th e overline assistance th a t is
needed once it is satisfied th a t the
local b an k can effectively c arry out
the servicing, th e spot checking, and
th e collection follow-up of a good deal
e r’s paper. The city correspondent
m ay consult and advise w ith th e local
banker, b u t he w ill be dependent upon
th e local b an k er for proficient on-thescene, day-to-day control of the dealer
relationship.
4
'•, Screen Each Application — Notw ith stan d in g th e sufficiency of th e
dealer, it has been our observation
th a t th e sm aller b an k often places
perh ap s too m uch confidence in the
dealer’s rep u rch ase agreem ent or recourse endorsem ent, and th a t th e bank
fails to screen each p u rc h a se r’s credit
application w ith th e help of a prom pt
and dependable report.
Also, in connection w ith dealer fi
nancing, it is disappointing to occa
sionally note an u n realistically low
ra te of discount. T his m ay a ttra c t
volum e, b u t it w ill n ot produce th e
yield th a t is deserved and w ill necessi
tate th e developm ent of considerably
larg er o u tstandings in order to arriv e
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a t th e sam e gross incom e w hich a
sm aller volum e w ould have provided
on a sound ra te stru c tu re .
4
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*
j
• Trained Specialist Needed—W hile
dealer b u siness is p robably th e m ost
prolific source of in sta llm e n t loan vol
um e, it is, of course, not the only ap
proach and m an y b an k s have enjoyed
rem ark ab le success via th e d irect loan
route. In e ith e r case, d irect or in d i
rect, it is our opinion th a t a sep arate
d ep artm e n t u n d e r a tra in e d specialist
is high ly desirable.
A m ong o th er “d ealer” problem s th e
b an k w ill face is th e onslau g h t of th e
hom e im p ro v em en t “o p e ra to r” w hose
fast sales ta lk s w ill in v ariab ly re su lt
in some h ig h ly u n satisfa c to ry in sta ll
m en t paper. T his is not to state th a t
th e re are n o t m an y h ig h ly rep u tab le
hom e im p ro v em en t dealers, w hose
business th e b an k m ay w ell en co u r
age. B ut, again, th e em phasis is on
th e specialist w ho m u st keep co n stan t
vigilance over all p ap er pu rch ased
from w h a te v e r th e source, including
close follow-up of all collections, and
continuous control over d elin q u en t ac
counts. W e have observed th a t a
g reat m an y b an k s neglect th is close
follow-up d u rin g th e ir in itial y e a r of
developing th e ir in sta llm e n t loan o u t
standings.
W hen to Departmentalize—I t is
difficult to state precisely ju st how
large an in sta llm e n t portfolio should
be to ju stify d e p a rtm e n ta l control, b u t
m any believe th a t m inim al o u tsta n d
ing balances should be in th e area of
a t least $3 to $4 thousand, rep resen tin g
ap p rox im ately 500 accounts. I know
of som e successful exceptions to th is
rule, how ever, an d I adm ire th e extrem ely m odest b eginnings to w hich
m an y b an k s can p o in t w ith pride.
T he statistics quoted in th e accom
pan y in g c h a rt can w ell serv e as a
guide for th e b a n k w h ich is consider
ing th e developm ent of a sep arate or
enlarged in sta llm e n t loan d ep artm en t.
I t is based on th e com posite re su lts of
a q u estionnaire on in stallm en t credit
received from 340 o u tstan d in g com
m ercial banks engaged in th is field of
lending. These figures as of Decem
b er 31, 1960, re p re se n t the latest avail
able.
'"I • S eparate Q uarters — The b an k
w hich has decided to operate th rough
th e facilities of a separate installm en t
loan d e p artm en t should consider the
idea of providing separate q u arters
w ith a fte r h o urs access. D ealer bu si
ness and in stallm en t custom ers fre
q u en tly m ain tain longer hours th a n
those n o rm ally kept in th e average
com m ercial ban k in g departm ent.
The choice of d ep artm en tal book
keeping equipm ent is im portant, but,
in m any cases, banks can take care
of th is w ith existing equipm ent. A
v e ry sim ple system of prescheduling
can be arran g ed w ith a m inim al in
v estm en t in equipm ent. M uch to th e
su rp rise of m any v isito rs in our own
bank, we use sim ple prescheduling
m achines, adding m achines, and a cou
pon book p erfo rato r to do m ost of th e
job. A key so rt system is used for
dealer controls and loan classifications,
and we find th a t th is system perform s
v ery satisfactorily.
W e w ill adm it, how ever, th a t th e
age of autom ation is ju s t around th e
corner. E lectronic data processing
10 POINTS TO CONSIDER . . .
(T u rn to page 46, please)
Èn$tallnu>nt C r e d it in ea ate
Com posite re su lts of 340 com m ercial banks engaged in in stallm en t
landing. F ig u res as of Decem ber 31, 1960.
1. P ercentage re p resen tin g each class of in stallm en t credit in an in stall
m en t loan portfolio.
Dollar
Gross Average
Class of Loans
Number Amount
Income
Loan
P ersonal Loans ...................... .. 23.16%
13.52%
$ 538
14.31%
F H A Title I .............................. . . 11.82%
9.99%
8.85%
1,007
M odernization—Own P lan .. . . 8.53%
7.09%
7.67%
940
Automobile-—D irect .............. . . 13.62%
18.87%
17.96%
1,408
22.52%
A utom obile—In d irect .......... . . 18.15%
24.95%
1,542
437
A ppliances .............................. , . 13.04%
5.67%
10.66%
3,134
Mobile H om e ............................ . . 2.30%
6.49%
6.17%
2,092
All o ther In stallm en t R etail. . . 9.38%
13.42%
22.86%
T O T A L ................................ . .100.00%
100.00%
100.00%
P ercentage of to tal deposits invested in in stallm en t credit outstandings.
TOTAL D EPO SITS (in m illions)
$25-50
$50-100
Over $100
Up to 10
$10-25
9.72%
11.83%
16.53%
14.75%
15.13%
3. R atio of to tal in stallm en t credit ou tstan d in g to to tal loans and dis
counts including m ortgages, n o t including investm ents.
TOTAL LOANS AND DISCOUNTS (in m illions)
Up to 10
$10-25
$25-50
$50-100
Over $100
29.18%
26.78%
24.22%
22.59%
16.87%
4. R atio of gross in stallm en t cred it incom e to gross incom e from to tal
loans and discounts, including m ortgages, not including investm ents.
5.
6.
7.
8.
9.
10.
TOTAL LOANS AND DISCOUNTS (in m illions)
Up to 10
$10-25
$25-50
$50-100
Over $100
37.91%
36.36%
34.28%
34.27%
25.24%
R atio of gross in stallm en t cred it incom e to o u tsta n d in g s.............. 8.71%
R atio of gross in stallm en t cred it expense, excluding cost of
m onty to o u tsta n d in g s.......................................................................... 2.66%
R atio of n e t incom e to outstandings, excluding cost of m oney
(5 m inus 6 ) .............................................................................................. 6.05%
R atio of to tal in stallm en t credit expense, excluding cost of
m oney to gross in stallm en t cred it in co m e....................................30.54%
N um ber of in stallm en t loans delin q u en t 30 days or m ore ex
pressed as a percentage of to tal in stallm en t loans o u tstanding
as of D ecem ber 31, 1960........................................................................ 1.80%
N um ber of in stallm en t loans o u tstan d in g p er em ployee..............
520
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
26
IN FO R M E D M EM BER S of th e p a n e l d is
cussion in th is a rtic le a re, fro m le f t : Gene
E aton a n d Robert A. W ekesser, se n io r vice
p re s id e n ts , N a tio n a l B a n k o f Com m erce
T ru s t & S a v in g s, L in c o ln , N e b .; B eryl W.
Sprinkel, vice p re s id e n t a n d econom ist,
H a r r is T ru s t & S a v in g s, C hicag o ; Dr. M il
ler Upton, p re sid e n t, B e lo it C ollege, B e lo it
W is .; H erm an A. Brockm eier, se n io r vice
p re sid e n t, a n d M yron W eil, e x e c u tiv e vice
p re sid e n t, b o th of N a tio n a l B a n k of Com
m erce, L in co ln .
M o re
P r o f it s
Several w ays to increase profits in the banking profession were presented
and discussed last month at a correspondent conference of the National
Bank of Commerce Trust and Savings, Lincoln, Neb., and the men pictured
on this page contributed ideas found in the following article:
ERYL W. SP R IN K E L : B ank
ers can expect deposit grow th
th e n e x t 10 y ears to be m ore
th a n d urin g th e p ast 10. C onsum ers are
borrow ing m ore and should continue
to do so . . . and businessm en w ill
m ake m ore dem ands for short-term
and long-term loans. All factors point
to m ore p ro fitability except one and
th a t is th e in te re st ra te rise, w hich
now is a cost factor. T his m ay be
costly and o th er plus factors m ay not
overcom e th is negative factor in b anks
w here th e re is a large n u m b er of dol
lars in tim e deposits.
A dvertising’s Purpose
Robert A. Wekesser: L earn all you
can about y o u r m ark et. Observe it
and try to ascertain w hich m a rk e t you
w ish to expand. T hen develop in th is
p articu la r area.
A dvertisin g is v e ry im p o rta n t . . .
and th e p rim a ry purpose of it is to
get people in y o u r b an k w here you
can m ake th em feel welcom e and ap
preciated. To develop m ore business
for y o u r bank, decide w h a t kind of
business you w ant, th e n stu d y how to
B
adv ertise and accom plish this. Mr.
W ekesser th en introduced C harles
F ish er, of K im ball, w ho explained
briefly th a t he recen tly com pleted a
m a rk e t stu d y of his area.
John W. Cattle: W e w anted to de
velop cattle feeding in our area and
began an ad v ertisin g p rogram w hich
has now becom e a v ery successful
com m unity program . W e are w o rk
ing w ith you n g sters so th ey can m ake
th e tra n sitio n from the show room
to th e actu al farm ing situation. Our
J u n io r C attle F eeders P rogram is in
its six th year. W e help th e young
sters b u y th e ir own calves and coach
th em th ro u g h a feeding program
w hich begins betw een October and the
end of th e year. A fter th e fairs and
th e Ak-Sar-Ben, we give our aw ards
to th e d eserving youngsters. If each
y ear w e can get th ro u g h to one
y o u n g ster and help him develop into
being a b e tte r farm er, we feel we can
be proud of our results.
A b an k cannot be m ore prosperous
th a n th e people in its area. If th e peo
ple are poor, so w ill be th e bank.
f o r S m a lle r
B ankers are generally th e respected
financial leaders of the com m unity
and th ey should step out and lead.
Community Projects
C. H. Hosier: W e had a nine-hole
golf course, b u t no club house. M em
b ership a t th e club w as only 20. W e
found a good farm house we could
buy for $1,000, so we sta rte d out to
raise m oney for developm ent of this
recreatio n spot. The b an k gave $100
and collected $3,800. W e bought the
farm house and b u ilt a clubhouse. The
m em bership is up, th e club is in th e
black and th e people of th e com m uni
ty have a good place to m eet to be
sociable.
Also, th e b an k bought th e school a
football scoreboard. T he b an k buys
tick ets for th e em ployees of th e bank
so th ey can a tten d local sports activi
ties. A nd we broadcast th e gam es
our team played in w hen it w ent to
the state cham pionship to u rn am en t
recently. T his w as a good p roject and
from th e com m ents w e had, we be
lieve everybody in tow n listened in.
Merchandise Modernly
Myron Weil: W e m u st learn to
m erchandise our w ares m odernly. We
MORE PROFITS . . .
(T u rn to page 44, please)
ALSO P A R T IC IP A T IN G w ere, le f t to
r ig h t: John W. C attle, p res., C a ttle N a
tio n a l B a n k , S e w a rd ; E. K. Y an ney, cash.,
F i r s t S ta te B a n k , L o d g ep o le; Charles
Fisher, cash., T he B a n k o f K im b a ll, K im
b a ll, a n d E d Coblentz, v.p., F a rm e rs S ta te
B a n k , A u ro ra . C. H. H osier, p res., F u lle r
to n N a tio n a l o f F u lle rto n , also c o n trib u te d
to th e discussion.
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T
27
ur i Nstaihavnt
CHepartine
- . . and iteifiilation *ï/*‘
H E N th e F e d e r a l R eserve
B oard am ended R egulation Q
it created a w hole new series
of problem s for bank ers, alth o u g h th e
intended purpose, no doubt, w as to
m ake it possible for th e b an k s of th e
co u n try to com pete m ore equitably
w ith th e ir com petition for th e savings
of our citizens. V ery little tim e w as
lost by th e m anag em en ts of m ost
ban k s in deciding th a t it w as to th e ir
advantag e to raise in te re st ra te s paid
to its savings cu stom ers in accordance
w ith th e am ended regulation. In so
doing, how ever, each m an ag em en t rec
ognized th a t its problem w as to de
velop earn in g s sufficient to su stain
th e h ig h er ra te s on th e larg er volum e
of savings an ticip ated as a re su lt of
th e increase.
In som e areas th e rise in ra te of in
te re st paid w as accom panied by a re
laxation in th e m a n n e r in w hich such
in te re st w as c o m p u t e d and paid.
W hereas in m an y areas th e custom
had been to cred it th e in te re st sem i
a n n u ally w ith certain re stric tiv e re g u
lations g o verning th e w ith d raw al in
relatio n to p ay m en t of in terest, at one
fell swoop, m an y b an k s w ere con
fronted w ith th e problem of p aying
th e increased ra te on a basis w hich
w as calculated to in crease th e am o u n t
paid on th e dollars in th e savings ac
counts and to m ake p ay m en ts com
pounded q u a rte rly ra th e r th a n sem i
annually. A ny one of th ese problem s
w ould have been cause for consider
able analysis and planning.
Earnings Problem
Coming as som e of th em did a t one
tim e has created a problem th a t is im
p o rta n t for both th e large and th e
sm all bank. T h a t problem briefly is
how to in crease earn in g s and how b est
to use th e an ticip ated increase in sav
ings funds. M any b an k s first of all
len gthen ed out th e m a tu ritie s in th e
bond portfolio. The lu x u ry of a liquid
bond portfolio could no longer be su p
p o rted b y m ost banks. C nsequently
th e scram ble w as on to b u y longer
m a tu ritie s b o th in th e m u nicipal tax
free field and in governm ents.
H ow ever, th is solves only a sm all
p a rt of th e problem . A n o th er area
th a t w as considered w as th e control of
expenses to a g re a te r degree n o t only
W
W ritte n E specially fo r
The N o rth w estern B a n ker
B y K E IT H G. CONE
S e n io r V ice P r e s id e n t
LaSalle N ation al B a n k
C h icago , Illinois
in th e h andling of the savings dollars
b u t bank-wide. The increased rate
and th e new basis for paying in te re st
created o th er expenses in addition to
th e increase in rate. It w as necessary
for in te rn al procedures to be re
vam ped and to provide for th e m eans
of servicing th e new m ethods. In
b an k s having large savings deposits
au to m ation seem ed to be th e answ er.
In b an k s w hich did not, it w as neces
sary to consider w ays and m eans for
h an d lin g th e additional clerical re
sponsibilities a t a m inim um cost.
A th ird area w as im m ediately ex
plored — com m ercial and in stallm en t
loans. Since th e subject of th is a rti
cle relates to in stallm en t loans we
w ill pass over th e activ ity in adju stin g
ra te s on com m ercial loans, p a rtic u la r
ly since th e re has been no m ove u p
w a rd in th e prim e rate, although th a t
fact does not preclude th e m anage
m en t of any b an k review ing rates
w hich are not realistic and ad ju stin g
th em accordingly.
T heoretically, in m any banks, and
actually in others, th e ou tstan d in g s in
in sta llm e n t credit w ere keyed to sav
ings deposits. The am endm ent to R eg
u latio n Q revived th is approach in
m an y b an ks and caused o th er banks
to consider w h e th e r is w as advisable
to (1) e ith er increase th e p resen t o ut
standings, (2) in stall a d ep artm en t
w h ere none existed on an organized
basis, and (3) raise in tallm en t rates.
T hese th ree item s are stated n ot nec
essarily in th e o rder of th e ir im por
tance n o r of th e approach by th e b ank
endeavoring to provide w ays and
m eans for u tilizin g th e funds received
as a re su lt of th e new ra te s and to
provide the basis for paying th e in
creased in te re st and servicing costs.
Installm ent A ctivities
W h eth er you have a d ep artm en t
th a t is established or not, it is m ost
certain ly in order to seriously con
sider u tilizin g your in stallm en t credit
activities as a sound basis for provid
ing th e additional volum e and income.
In th e first place, because of th e fact
th a t y o u r in stallm en t credit portfolio
is paced out over a period of from 12
to 36 m onths, you have àn earn in g
asset w hich is on a longer re tu rn b a
sis th a n yo u r com m ercial loans and
certain ly m ost liquid since you are re
tu rn in g to y o u r inv estm en t account
a p ro p o rtio n ate am ount each m onth
w hich can be rein vested e ith er in th e
in stallm en t area or otherw ise as cir
cum stances m ay dictate. In th e sec
ond place, th e yield from in stallm en t
credit h istorically has been g re a te r
th a n th a t from com m ercial credit and
is still so even though p resen t com
petitive conditions have n arrow ed th a t
ra te m ore th a n we in com m ercial
ban k s should perm it. Both of these
reasons w ould seem to ju stify serious
consideration for increasing in v est
m en ts in in stallm en t credit by th e
com m ercial b ank desiring to increase
its earnings as a m eans for offsetting
increased expenses and u tilizing an
increased volum e of savings funds.
Analyze Conditions
H ow ever, before so doing it w ould
seem to be in o rder for each b an k to
fairly analyze th e com petitive condi
tions in th e com m unity, to analyze th e
INSTALLMENT CREDIT . . .
(T u rn to page 54, please)
Northwestern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
28
A
GOVERNM ENT PORTFOLIO POLICY
. . . in light o f higher
W ritte n E specially fo r the N orth w estern B a n ker
B y D A V ID G. TAYLOR
A ssista n t C ash ier, B o n d D e p a r tm e n t
C o n tin e n ta l Illinois N ation al B a n k a n d T ru st C o m p a n y
C hicago, Illinois
M
ANY questions have been raised
w hich p e rta in to th e recen t
changes in R egulation Q and
re su lta n t increases in savings in te re st
rates. F o rem o st in m ost b a n k e rs’
m inds is th e problem of m ain tain in g
b an k earn in g s in th e face of th is ex
pected sh arp rise in in te re st expense.
T here is, of course, no sim ple solution
to th is problem . I t w ill, in th e fu tu re,
pervade all areas of b an k operations
and, in m an y w ays, m ay accelerate th e
tem po of change w hich b an k s have ex
perienced d u rin g th e last 15 years.
I t seem s likely th a t banks, in th e
fu tu re, w ill be m ore vigorous com peti
to rs in th e fields of in sta llm e n t and
m ortgage lending. T hey w ill becam e
even m ore in v en tiv e in d eterm in in g
w ays in w hich to a ttra c t deposits.
T hey w ill utilize th e ir in v estm en t
funds m ore aggressively, hoping to
realize g re a te r re tu rn s from them .
T he problem of o p eratin g expenses
and costs of services ren d ered will be
studied and efforts m ade to reduce
th em th ro u g h au to m atio n and im
proved system s. T hro u g h m ore ag
gressive a ttitu d e s in m an y areas,
b ankin g m ay becom e a new k ind of
business. Faced w ith reduced profit
m argins, th e in d u stry w ill becom e
m ore depen d en t on volum e and its p ri
m ary earn in g functio n —th a t of lend
ing money.
Portfolio Adjustm ents
As th ese changes occur, of course,
th e gov ern m en t secu rities portfolio
w ill have to be ad ju sted to m eet them .
Some idea of w h a t th ese ad ju stm en ts
w ill en tail m ay be g o tten from the
experience of th e last te n years. D u r
ing th is tim e th e re has been a g radual
increase in in te re s t ra te s paid on sav
ings and tim e deposits. T his increase
has only been a p a rt of a sh arp tendN o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ency for all expenses to rise as sal
aries and w ages have increased and
costs have pushed up in all areas.
B asically then, th e recen t increases
in savings in te re st rates rep re se n t an
ex tension of a problem w hich banks
have been facing for m any y ears and
w ill continue to face in th e future.
F u rth e r com plicating th e problem s
ahead, how ever, are, first of all, the
sh arp n ess of th e recen t increases in
savings in te re st rates and, secondly,
th e long-term prospects for th e gen
eral level of in te re st rates. D uring
th e last ten years, th e b anking system
has been favored w ith a long-term
tre n d of risin g in te re st ra te s w hich
has tended to provide earnings to
overcom e th e rise in expenses. T here
is, of course, some question th a t th is
secular tre n d in in te re st rates w ill
continue into th e future.
T able I sum m arizes th e changing
w ays in w hich com m ercial banks have
allocated funds to principal earn in g as
set categories d u rin g th e last ten
years. The figures show n are p ercen t
ages of to tal assets.
The m ost obvious ban k in g tre n d
d u rin g th e last ten years, of course,
has been th e steady rise in loan ratios.
As m ay be seen in Table I, th e ra tio
of loans to to tal assets had increased
to 46.7 p er cent in mid-1961 from 34.1
p er cent in 1952. The com m ercial
b a n k e r’s w illingness to p articip ate in
th is trem endous post-w ar upsurge in
loans m ay certain ly be related to the
n ecessity of overcom ing risin g ex
penses.
Tax-free Issues
A c o n cu rren t developm ent has been
a stead y increase in com m ercial banks
in v estm en t in tax-free securities. State
an d m unicipal bond in v estm en t stood
a t 5.4 p e r cent of to tal assets in 1952.
In Ju n e, 1961, is had risen to 7.3 per
cent. T his rep resen ts an increase of
about $8.6 billion. H ere, it m ay also
be assum ed th a t risin g costs had m uch V
to do w ith the decision of b ank m an
agem ents to in v est m ore heavily in
tax-exem pt bonds.
P aralleling th ese increases in higher
yielding assets has been a tre n d of ►
declining in v estm en t in U. S. govern
m en t securities. The ratio of govern
m ents to to tal assets had fallen to 24.3
p er cent in mid-1961 from 33.5 p er cent y
in 1952. It appears th a t th e g overn
m en t securities portfolio has been
called upon to fu rn ish a large p a rt of
the funds used to expand loans and y
tax-exem pt secu rity holdings and that,
as deposits have expanded, a sm aller
portion of each new dollar has gone
into governm ents.
T he go v ern m en t securities portfolio Y
has a three-fold role in th e com m ercial
bank. I t m u st provide th e lion’s share
of both loan and deposit liquidity.
T his becom es increasingly tru e as r
banks operate w ith low er cash assets.
Secondly, th e g overnm ent account
m u st be designed to m eet broader,
longer te rm c y c l i c a l and secular
c h a n g e s in b ank asset stru ctu re. A
Thirdly, th e governm ent portfolio
m u st co n trib u te su b stan tially to bank
earnings. Seventh F ed eral R eserve
m em ber banks still derived 27.5 per
»
cent of to tal earnings in 1960 from
in te re st on U. S. g overnm ent securi
ties.
T here is perhaps, a fo u rth role th a t
th e g overnm ent securities account
m u st play in th e com m ercial bank.
In a p ro perly co n stituted bank, assets,
liabilities and capital m u st not only
balance in dollar am ount, b u t m ust A
also balance from th e stan dpoint of
the risk in h e re n t in each item . Thus,
a b an k w ith low capital or an unstable
deposit stru c tu re w ill be re stricted in
th e am o u n t of risk th a t it can accept <
in allocating funds to v arious assets.
A b an k th a t has a v ery large loan posi
tion m ay need to lim tis its in v estm en t
in state and m unicipal bonds. Or,
any of th ese factors m ay affect both
th e size and m a tu rity of th e govern
m en t portfolio.
29
Basically, th e governm ent portfolio
has becom e m ore defensive. As its
size has been reduced, a g re a te r pro
po rtio n of its holdings have h ad to be
diverted to th e provision of loan and
deposit liquidity. Sim ilarly, provisions
for longer te rm liquidity needs have
become m ore signficant in relatio n to
th e total. As com m itm ents have in
creased in risk assets, th e principal
“non-risk” asset (governm ent securi
ties) has declined in to tal and, th e re
fore, had to be m ore conservatively
draw n. All of th is has left less lee
w ay w ith w hich to fill th e all-im por
ta n t portfolio earnings requirem ent.
Interest Rates
T he recen t increases in com m ercial
banks savings rates seem likely to
continue th e tre n d s of th e p ast few
years. A m ple evidence of a fu rth e r
increase in tax-exem pt holdings has
been d em o n strated by large com m er
cial b an k p u rchases since th e first of
th e year. The com m ercial b a n k s’ de
sire for m ore loans has been w ell
broadcast. I t looks as though th e fu
tu re w ill continue to p re se n t th e pro b
lem of m axim izing earnings in a gov
e rn m en t portfolio w hich n ot only m ay
decline as a percentage of to tal assets
savings in terest rates
A ssum ing the above fo u r re q u ire
m en ts from th e g o v ern m en t portfolio,
it seem s likely th a t th e g re a t changes
in com m ercial b an k s asset allocation
d u rin g th e last te n y ears m u st have
caused som e basic ad ju stm en ts in
portfolio policy. Table II show s th e
com posite com m ercial b an k gov ern
m en t s e c u r i t i e s portfolio m a tu rity
schedule on J u n e 30, 1953, to 1961.
U n fo rtu n ately , th e sh o rte n in g and
len g th en in g of secu rities portfolios, in
response to peaks and valleys in in te r
est rates, g re a tly influences th e figures
in Table II. N evertheless, th e table
does seem to p re se n t evidence of th e
otherw ise w idely held o bservation th a t
th e last few y ears have seen consider
able over-all sh o rtn ein g of com m er
cial b an k g overnm ent secu rity ac
counts. T he table d istin ctly reflects a
su b sta n tial decline in over 10 y ears
holdings. These securities have fallen
from 8.8 p er cent of to tal holdings in
1953 to 3.5 p er cent in 1961, an actual
decline of $2.6 billion. It w as n ot u n
usual, in th e mid-1950’s to see banks
w ith alm ost half of to tal holdings due
in over five years. In m ore recent
tim es th is figure has varied betw een
16 and 23 p er cent. It seem s reason
able to conclude th a t com m ercial b ank
g o v ern m ent secu rity portfolios have
n o t only been reduced in size b u t also
in m atu rity . As g reater in v estm en t in
loans and tax-exem pt securities has
been m ade, th e job of th e governm ent
portfolio has been altered.
GOVERNMENT PORTFORIO . . .
(T u rn to page 38, please)
TABLE I
AH Insured Commercial Banks
Loan and Investment Assets As a Percentage of Total Assets
December 31, 1952 to 1960, June 30, 1961
1952
1953
1954
1959
1955
1956
1957
1958
Loans and Investm ents .............. „ 7 5 .0 %
Lo an s ........ .................................... 3 4 .1
Investm ents:
..............
40.9
U . S. G o v e rn m e n t S e c u ritie s .33.5
S ta te and M u n icip a l Bonds ... 5.4
O th e r Se cu ritie s ....................... 2 . 1
S o u rc e :
7 7 .0 %
35.0
42.0
34.0
6.2
1.8
7 6 .3 %
39.4
36.9
2 9 .1
6.0
1.8
7 6 .0 %
4 1.7
34.3
26.8
5.9
I.6
7 6 .3 %
42.3
34.0
2 6 .1
6 .1
1.8
7 7 .6 %
4 1.3
36.3
27.7
6.9
1.7
7 7 .7 %
45.4
32.3
24.0
6.9
1.4
1960
1961
7 7 .4 %
45.8
3 1.6
23.6
6.8
l.2
7 9 .5 %
46.7
32.8
24.2
7.3
1.3
F e d e ra l R e s e r v e B u lle tin
Maturity
TABLE II
All Commercial Banks
Composite Government Security Maturity Schedule
Percentage of Total Investments
June 30, 1953 to 1961
1953
1954
1955
1956
1957
1958
1959
1960
1961
3 1-6 %
2 6 .1
33.4
8.9
12 .9 %
3 9 .1
3 8 .1
9.9
15 .0 %
36.8
38.6
9.6
2 5 .2 %
48.4
17.7
8.7
2 3 .4 %
42.7
24.9
9.0
18 .8 %
58.6
15.4
7.2
I 3 .6 %
69.5
12.4
4.5
3 6 .6 %
46.5
13.4
3.5
10 0 .0 %
10 0 .0 %
10 0 .0 %
10 0 .0 %
10 0 .0 %
10 0 .0 %
10 0 .0 %
10 0 .0 %
7 4 .1 %
25.9
5 7 .7 %
42.3
5 2 .0 %
48 .0
5 1.8 %
48.2
7 3 .6 %
26.4
6 6 .1 %
33.9
7 7 .4 %
22.6
8 3 .1 %
16.9
8 3 .1 %
16.9
1 0 0 .0 %
10 0 .0 %
10 0 .0 %
10 0 .0 %
10 0 .0 %
1 0 0 .0 %
10 0 .0 %
1 0 0 .0 %
1 0 0 .0 %
W ith in one y e a r ________ ........... 3 8 .3 %
35.8
Tw o thru five years
Six thru ten years
17 . 1
O v e r ten ye a rs
...............
8.8
Total
W ith in five ye ars
O v e r five ye a rs
.............
Total
S o u rc e :
7 5 .4 %
35.2
40.2
32.6
5.6
2.0
10 0 .0 %
F e d e ra l R e s e r v e B u lle tin
No rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
30
S a p p itj a n ti t if a t a m i
S iiii
fitta tim S ittfk 3 t a r k vis
B y RAYM OND TRIGGER
In v e s tm e n t A n alyst
N ew Y o r k City
H E c u rre n t price fluctuations in
prim e debt and eq u ity securities
m ay n o t am o u n t to m uch b u t a
definite change is becom ing p ercep ti
ble in th e play of supply and dem and.
G radually, th e m a ste r’s seat in th e
bond m a rk e t is being ta k e n over by
th e sellers of debt securities, w ith th e
in stitu tio n a l b u y ers nudged into a
back place. W ith equity, it is the
o th e r w ay around.
A t th e m om ent, th e stock m a rk e t is
m ak in g an o rd erly stan d a fte r expe
rien cin g th e m ost d rastic dow nw ard
ad ju stm e n t in valu es in m an y m onths.
T rue, th e re is no lack of eq u ity issues
w hose m a rk e t valu es seem to be u n
derp in n ed by w ide dem and. B ut in
general, th e super-bull m a rk e t th a t
h as tak en dividend yields to th e low
est level in m odern tim es seem s to
have lost m uch of its head y bloom.
Selective Stock Buyers
P rice rallies th a t rew on for h isto ri
cal blue chips m uch of th e setback
su stain ed in th e sh ak eo u t have not
been sh ared by m an y rank-and-file
stocks, to say n o th in g of th e legion of
hangers-on. B uyers of eq u ity sh ares
a re becom ing m ore selective about
nam e and m ore p a rtic u la r about price.
T he m ath em atics of pro jectin g the
earn in g s of “grow th stocks” a decade
hence are being scrutinized m ore fu l
ly. It is th e old, old sto ry of th e m en
an d th e boys.
Because of th e tou ch y balance of in
te rn atio n a l p ay m en ts problem th a t is
h arassin g th e U nited States, th e span
of rep re se n ta tiv e in v estm en t yields in
th e m a rk e t is n a rro w e r th a n o th e r
w ise m ig h t be expected. A t one ex
trem e is th e yield on th ree-m o n th s’
T re a su ry bills, now about 2% p er cent.
A t th e o th er end are yields on conventito n al m ortgages, about 6 p er cent.
In th e cen ter area of th is yield
sp read are th e re tu rn s from eq u ity
an d longer te rm debt secu rities of bas
ic kind. The yield on stocks today is
about 3 p er cent. P rim e tax-sheltered
m unicip al and sta te bonds are yielding
about 3% p er cent. The g o vernm ent
bond m a rk e t is on a 4 p er cent basis.
T
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Top grade corporate bonds of new is
sue are selling at prices to yield about
4 M: p er cent.
1929 Phrases Recalled
On th e technical side w ill be re c u r
rin g questions as to th e justification
for yield relationships for w hich th ere
is little h istorical basis. Can yields of
3 p er cent on stocks com pared w ith
yields of 4% p er cent on bonds be
shrugged off by the assertion th a t th is
is “a new era?” It w ill be recalled
th a t th e re w as no shortage of sim ilar
fast p h rases in 1929 to account for the
fan tastic w ay stocks w ere discounting
th e earn ings of an o th er generation
w hile call m oney w as being lent out
a t ra te s ran g in g from 8 to 15 p er cent.
A n o th er technical factor in th e m a r
ket to be pondered is th e in terv en tio n
of th e F ed eral R eserve System to keep
sho rt-term g o v e r n m e n t borrow ing
ra te s up at a tim e th a t m aintenance
of an easy m oney policy is held
needed. T here can be no question b u t
th a t th is m ove of th e cen tral b a n k one in ten ded to persuade foreign in
te re sts to keep short-term funds in
v ested in th is m ark et—is having ef
fects co llateral to th a t intended.
N obody know s how m uch dom estic
m oney is being attra c te d to th e sh o rt
te rm m arket, or, to p u t it otherw ise,
nobody know s how m uch longer term
ra te s here w ould be if th e F ed eral
w ere n o t using special m eans to keep
th e short-term rate from falling.
W ashington Quiet
L ittle is said about th is in W ashing
ton, because of th e ingenuous belief
a t Capitol H ill th a t in te re st rates can
be controlled by p u sh in g b u tto n s—
th a t if th e purpose is to pu sh long
te rm ra te s dow n w hile holding sh o rt
te rm rates up, th e only problem is the
selection of m irro rs and buttons.
T h ere m u st be m ark et technicians in
the F ed eral R eserve System w ho
know b etter, b u t th ey seem to be in
h ibited about contradicting spokesm en
for th e K ennedy A d m inistration in
public.
I t is w idely believed in th e financial
d istric t th a t “O peration N udge,” the
avow ed 1961 objective of th e K ennedy
A d m inistration to hold sh o rt ra te s up
w hile p u sh in g long rates dow n is a
dead letter. If so, th ere w as no spokes
m an at the fu n eral except statistics
show ing changes in th e i nv estm en t
portfolio of the F ed eral R eserve Sys
tem . In recent m onths, th e S ystem ’s
purchases of long-term T re a su ry bonds
—w h eth er to “n udge” th e long ra te
dow n or to serve an o th er purpose—
have been negligible.
Three Major Points
On th e economic side, th e th ree majo r points stand out, as follows:
(1) The th re a t of inflation is over.
The econom y is m oving along a t a
high level, b u t its inability to generate
m ore th a n a token percentage of
grow th is giving m ore concern th a n
th e reappearance of inflation.
(2) U nem ploym ent is holding a t an
uncom fortable high percentage—about
7 per cent in th e face of th e fact th a t
th e n atio n ’s production organism is
o perating n ear hig h levels. The p e r
sistence of th is float of jobless people
is probably one of th e reasons w h y
th e F ed eral R eserve is follow ing m ore
of an easy m oney policy th a n a n eu
tra l one at th is tim e. The n et free re
serves of th e ban k in g system have not
been allow ed to fall m uch below $500,000,000 despite th e fact th a t th e Re
serve B anks are ch arging m em ber
banks a ra te of 3 p er cent on loans.
(3) The balance of p ay m en ts difficulty, one th a t has been signalized
rep eatedly in 1961 and th is y ear by
u n w an ted outflows of m o n etary gold
abroad, is p resen tin g not only th e
F ed eral R eserve System and th e
T reasury, b u t the n atio n ’s priv ate in
v estm en t in te re sts and labor force,
w ith challenges th ey have never faced
before. The E u ro p ean Common Mark et prom ises to yield soon for th e
Old W orld com m unity a w orld price
com petitiveness u n d er living stan d
ards com parable w ith those of th e
U nited States. T his m eans th a t the
w hole price stru c tu re of the U nited
States econom y w ill be th ro w n into
question in th e not-too-distant years.
Money Dangei’s
On th e m oney side, it m eans th a t
governm ent-sponsored cheap c r e d i t
cannot be sponsored w ith o u t w aterin g
th e m oney supply dangerously or
stooping to th e discredited E uropean
control system s of th e depression and
w ar period — em bargos on gold and
capital tra n sfe rs, foreign exchange contro ls and m ultiple kinds of “m oney”—trad e m oney, in v estm en t m oney, con
sum ption m oney, tra v e l m oney, tax
m oney, etc., etc.
SUPPLY AND DEMAND . . .
(T u rn to page 37, please)
^
^
y
,
Y
y
'
^
.
-A
y
.y.
:
+
y
31
fff res tuten t Opportun ities
tu
C ont m ereiai
W ritten E specially f o r the N orth w estern B an ker
By DO N A LD G. R E ID , p a rtn e r , A shw ell & Co., Chicago
OW in th e w orld are w e going
to cover th a t 4 p er cen t ra te ? ”
T his question, in one form or
an o ther, is being asked by m ost coun
tr y b an k e rs today, as w ell as by m any
of th e ir big-city cousins. To an sw er
it, som e b a n k ers have su b stan tially
lengthen ed th e ir portfolio m atu rities,
w hile o th ers are seeking g re a te r yield
on th e ir sh o rt te rm funds. I t is th is
la tte r group th a t has caused th e in
creased in te re st on th e p a rt of b anks
in th e com m ercial pap er m ark et.
C om m ercial p ap er c o m p e t e s for
fu nds w ith o th er sh o rt te rm in v e st
m en ts w hich include th e m a rk e ts for
T re a su ry secu rities—bills, certificates
and notes—b an k ers acceptances, fed
eral funds, and stock exchange call
loans. A m ong these, th e com m ercial
p ap er m a rk e t is considered th e oldest,
d atin g back to 1837, th e h ig h est yielding, and th e broadest, by n u m b er and
v a rie ty of borrow ers.
In 1961, 350 com panies issued com
m ercial paper. Of these, te n finance
com panies sell th e ir notes d irectly and
account for ab o u t half th e o u tstan d in g
com m ercial paper. T he balance of b o r
row ers, averag in g ab o u t $5,000,000 in
open m a rk e t borrow ings, are categorized as follows:
H
'
f
r
Finance c o m p a n ie s .....................117
M anufacturers ............................. 138
W h o le s a le r s .................................. 22
R etailers ......................................... 39
M anufacturers and processo rs. 24
340
T he n a rro w b and w ith in w hich
th ese sh o rt te rm m oney m a rk e t ra te s
move, n o rm ally finds com m ercial p a
p er yielding from one-fourth to one
p er cent m ore th a n T reasu ry bills, de
pending on th e size of th e borrow er.
T he effect th a t th is increased rate has
over com peting sh o rt te rm in v est
m en ts can be seen from th e following
com putation:
If a com m ercial paper note yielding
3Vz p er cent for 90 days is purchased
in preference to a 90-day T reasu ry bill
yielding 2.72 p er cent, the additional
in te re st received am ounts to 28.6 p er
cent. T his increase in in te re st incom e
w ould tend to g reatly offset th e added
cost of 4 p er cent savings rates. The
exact am ount w ill depend on th e in
dividual b a n k ’s experience w ith con
v ersio n of savings accounts to th e 4
p er cent level. H ow ever, one point is
clear, th a t com m ercial pap er w ill do
m ore to reduce th e cost of 4 p er cent
m oney th a n w ill com peting sh o rt term
in v estm en ts of equal credit standing.
F ro m a liquidity standpoint, com
m ercial paper is generally salable in
th e secondary m arket, enabling a hold
er to dispose of his in v estm en t p rior
to m atu rity . M oreover, banks not in
fre q u e n tly sell com m ercial paper to
correspondents, and m em ber banks
m ay discount m atu rities u n d er 90 days
a t th e ir F ed eral R eserve Bank. Since
all notes are expected to be paid at
m a tu rity , th e holder has assurance
th a t cash w ill be available a t th a t
date. M any purchasers, having expe
rienced c o m p l e t e satisfaction w ith
such paper, often renew a t m a tu rity
date if th e sam e com pany’s note is
available.
Yield and liquidity are only tw o of
th e ch aracteristics of com m ercial p a
p er th a t m ake it a desirable sh o rt term
investm ent. T he th ird is safety. Ob
viously none of these can be consid
ered in dependent of th e o ther two.
T he safety record of com m ercial paper
is a historical fact. In 1931 and 1932,
for exam ple, losses on com m ercial p a
p er w ere su b stan tially less th a n on
d irect loans—less th a n 0.1 p er cent of
outstandings. Since 1935 th ere have
been no rep o rted losses on dealerplaced paper. A basic reason m ay be
listed for th is record. R elatively few
com panies use th e com m ercial p ap er
m a rk e t and these are firm s th a t have
proven ou tstan d in g credit. D ealers
are selective so as to p reserve th e
q uality of th e m arket.
Differences exist betw een types of
com m ercial pap er w hich m ay be of
in terest. F inance com pany notes, due
to th e co n stan t borrow ing n a tu re of
th e issuers, are available w ith m a tu
rity dates w hich are tailor-m ade to
th e req u irem en ts of th e purchaser.
Com m ercial pap er of in d u strial is
suers, on th e o th er hand, n orm ally
b ears fixed m a tu rity dates, and from
th a t stan d p o in t perh ap s is slightly less
flexible th a n finance paper.
P u rch ases of com m ercial paper are
m ade e ith er direct from th e dealer or
th ro u g h a m etropolitan correspondent
bank. D elivery can be m ade to, and
pay m en t received from , th is co rre
spondent w ith th e physical notes be
ing held e ith er by th e p u rch aser h im
self, or in safekeeping a t th e co rre
spondent bank.
T he 4 p er cent ra te m ay seem diffi
cult to cover, b u t th ro u g h th e m edium
of com m ercial paper, th e effect of th is
ra te on profits m ay be g reatly offset
w ith o u t lengthening m atu rities, and
th e re su lta n t sacrifice of liquidity—
End.
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
32
A.
B an k ers C om m en ts on :
Savintfs anti 1hv Munivipai
Itomi 3larket Outlook
HW2
A N orth w estern B an ker Survey
*
INCE m an y b an k s have increased
th e ir in te re s t ra te s on tim e cer
tificates and on savings, th e re has
been indications of expanding dem and
for m unicipal bonds to offset hig h er
rates.
A ccording to a su rv ey ju s t com
pleted by th e N or thw estern B anker
am ong b an k s in th e N o rth C entral
U nited States, m unicipal bonds com
prise an average of slig h tly m ore th a n
21 per cent of a b a n k ’s in v estm en t
portfolio.
As show n in th e accom panying
graph, a m a jo rity of th ese m unicipal
holdings w ill m a tu re in one to five
years. J u s t over 6 p e r cent w ill be
held for m ore th a n 10 years.
S lightly m ore th a n h alf of th e b anks
replying, 51 p er cent, indicated th e y
do n ot in ten d to in crease th e ir m u n ici
pal in v estm en t volum e due to th e in
creased savings account rates. A n
o th e r 36 p er cent indicated th e y in ten d
to increase th e volum e of th e ir m unici
pal holdings and 6 per cen t rep o rted
th e y are p lan n in g to decrease m u n ici
pal holdings. T he balance did not
com m ent on th e ir p lans reg ard in g
th e ir m unicipals.
R egarding m a tu rity of m unicipal
bonds, 62 p er cen t of th e rep ly in g
banks in dicated no change and 31 p er
cen t said th e y p lan to extend th e m a
tu rity of th e ir m unicipal holdings. A n
o th e r 7 p er cent did n o t com m ent.
Follow ing are some rep re se n ta tiv e
com m ents from persons p articip atin g
in th is survey:
■ H. F. E sm a y, execu tive vice p resi
dent, S to c k m e n ’s B ank, G illette, W yo.
—W e plan no p a rtic u la r change at this
tim e as w e have alw ays included about
th e sam e percen tag e of our bond p o rt
folio in sh o rt te rm m unicipals. W e
would, how ever, increase our in v e st
m ent if our loan dem and should slack
up. L oan dem and is v ery heavy in
th is area.
■ Lee M. S ten eh jem , execu tive vice
president, F irst N ational B a n k, W a t
S
N o rth w e ste rn B anker , M a rc h , 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ford City, N. D.—It is going to be nec
essary to increase our in v estm en t re
tu r n to offset th e rise in our tim e
deposit and savings rate.
■ 0. B. Silvey, president, B illings
State B a nk, Billings, M ont.—W e plan
on b u ying m ore m unicipals and will
probably buy in longer m a tu rity since
we w ill be b uying for in v estm en t and
non-taxable income, ra th e r th a n as
secondary reserve.
■ M ax vo n Schrader, president, Un
ion B a n k & T ru st Com pany, O ttum w a,
Iow a—W e believe in m ost cases m u
nicipal bonds offer th e b est o pportu
n ity for in v estm en t of funds on w hich
th e b a n k is paying 4 p er cent, p a rtic u
larly in areas w here good real estate
m ortgages are not available.
■ W . W . Cook, Sr., president, B ea
trice N ational B ank, Beatrice, N eb .—
M ost of our in v estm en ts in m unicipals
are N ebraska m unicipals of various
kinds. Now th a t w e are a t 4 p er cent
on tim e m oney, I th in k it is necessary
th a t w e do increase our holdings, b u t
n o t go beyond a five- or six-year m a
tu rity . W e hope also to increase our
in v estm en ts in in stallm en t loans.
B W . C. Talen, president, F arm ers &
M erchants B ank, W a tertow n, S. D .—
Because of additions to our loan loss
reserves, w e are not in th e 52 per cent
tax b rack et for th e n ex t few years.
T herefore, a 4 p er cent taxable govern
m en t bond is b e tte r th a n a 3 p er cent
m unicipal to pay a 4 p er cent savings
rate.
B C. R. Currell, vice president, E m
m e t C ounty State B ank, E stherville,
Iow a—B anks, now paying 4 per cent,
w ill definitely be m oved into the m u
nicipal bond field. T here probably
w ill be a tendency for m any banks to
try and extend th e ir portfolios, reach
ing for yields. M unicipal bonds tend
to be m ore of a frozen asset in periods
of h ard tim e. Thus, m unicipals as
p a rt of an in v estm en t portfolio are
b est suited to banks w hich have lower
loan ratios.
fl W . H arold B renton, president,
B ren to n Companies, Des M oines, Iow a
—Our B ren to n banks changed to 3V2
and 4 per cent savings certificates and,
w ith th e g re a te r difficulty in buying
good credit m unicipals a t th e rates
w hich we prefer, w e have lengthened
th e m atu rities w hich we purchase to
15 y ears and are increasing the vol
um e to approxim ately 20 p er cent of
deposits.
B P. E. Sorg, vice president and
cashier, F arm ers State Savings, In d e
pendence, Iow a—Our policy is to carry
about $1 m illion in m unicipals w ith
$100,000 ru n n in g off each y ear to ob
ta in an average yield on a 10 year m a
tu rity .
B L. H. M ehling, vice president,
A m erican N ational B ank, Sidney, Neb.
—W e ow n p rim a rily N ebraska m u
nicipals b u t try and stay w ith rated
bonds, n ot to exceed seven-year m a
tu rity in bonds outside th e state.
B L. T. T itus, president, F irst N a
tional B ank, H oldrege, N eb.—W e hold
$100,000 bonds to m atu re every year
for 10 years. The only bonds we buy
1-5 years
M atu re in 5-10 years
■ ^ ^ ^ ^ ^ ^ ■ ^ ^ ^ ^ ^ ■ B B B B i^ B B B H B B B H B
Y
>
Ti
y
Y
Y
A
Maturity of Municipal Holdings
M atu re
»
60% +
B M B B B B B flB B B H H B B I 3 3%
M a tu re in 10-15 years ^ B B
M a tu re in 15-20 years |
6%
■V
less than 1 %
fi
33
W e own and offer subject to prior sale and change in price:
M oody's
Rating
BAA
Amount
I s s ue
I0M
A lam eda
C o.,
& W ater
AA
AA
I0M
State
of
Coupon
Maturity
Yield
3 1/4%
2-1-72
3.25
3 i/2 %
4-1-74
3.00
Calitornia Flood C ontrol
Cons.
District Z o n e
California,
2
Various Purpose
25M
3 3/ 4 %
9-1-76
3.05
I25M
3 3/4 %
4-1-82
3.35
I00M
C i t y o f Los A n g e l e s , C a l i f o r n i a
3 >/4%
3-1-67
2.30
200M
3 '/4%
3-1-68
2.40
I00M
3 1/4%
3-1-69
2.50
S ch o o l District W l
AA
I0M
C ity of Cleveland, O h io
3 %%
10-1-64
2.00
AA
I5M
C i t y o f Kansas C it y , Missouri S c h o o ls
3.40%
6-1-76
2.90
AA
25M
C ity o f Denver, C olorad o,
2.00%
9-1-65
2.05
2.00%
8-1-65
2.05
2.10%
10-1-65
2.00
3 %%
1-1-74
2.90
Various P u rp ose
AAA
50 M
M ilwaukee C o u n ty ,
W isconsin,
Various P u rp ose
AAA
50M
C ity o f M adison, W isconsin,
Various P u rp ose
A
I00M
A
50M
N e w t o n C o m m u n i t y S c h o o l District, Iowa 3 . 1 0 %
1 1-1-80
3.10
AAA
25M
Cedar
Iowa
2 '/4 %
1 1-1-70
2.65
3.40%
3-1-76
3.10
A
C ity
50M
of
C hicago,
Rapids
Illinois, V a r i o u s P u r p o s e
C o m m u n i t y S c h o o l District,
N e w Y o r k C i t y , N e w York,
Various P u rp ose W l
AA
BAA
25M
Des M oines
Iowa W l
25M
I n d e p e n d e n d e n t S c h o o l District,
I n d e p e n d e n t S c h o o o l D i s t r i c t N o . 281
(Robbinsdale) M innesota
I5M
D
e a n
W
it t e r
Members New York Stock Exchange
•
•
LOS ANGELES
47
1 1-1-80
3.00%
2-1-67
2.60
3.00%
2-1-68
2.70
O ffice s S e r v in g
2.875
& Co.
Midwest Stock Exchange
517 Locust Street
DES MOINES
SAN FRANCISCO
V s%
■2
505 Farnam Building
OMAHA
.
CHICAGO
.
NEW YORK
In v e s to rs
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
34
In vestm en ts
each y e a r is a ten-year m a tu rity and
replace any th a t are paid ahead of m a
tu rity .
■ E. M. K n ig h t, president, Alliance
N ational B a n k, Alliance, Neb. — We
ow n N ebraska m unicipals and N ebras
k a law req u ires m unicipals to have
five-year options. If we b u y th em at
high yield th e y are called a t option.
If we buy th em a t low yields, we are
locked in to m atu rity . The tax-free in
come sounds b e tte r th a n it is.
■ J. E. K ing, president, Peoples N a
tional B ank, Albia, Iow a—W e are u s
ing our m unicipal in v estm en ts for a
su b stitu te for real estate m ortgages as
th e rate s for m unicipals are better.
rr
i). M cF a r l a n d
V ice P resid en t
K alm an & C om pany, Inc.
M in n eap olis, M innesota
r ic h a r d
Y
H E R E is no question b u t th a t th e m unicipal bond m arket. Obviously,
ad v en t of 4 p er cent in te re st rates th is is hailed w ith g reat en th u siasm
on tim e m oney has created a difficultby in v estm en t b an k ers such as o u r
earn in g s problem for m ost bankers. selves.
In order to m ain tain profits at c u rre n t
To m ake a b lan k et statem ent, how
levels m an y b an k ers are looking to the ever, as to th e in v estm en t policies all
banks should follow is im possible. I t
is an individual problem , th e an sw er
to w hich can only be found by analyz
ing th e balance sheet of th e individual
bank. W h at is p ru d e n t for the Chase
M anhattan B ank in New Y ork is not
necessarily w h a t should be done by
a b an k in th e m idw est. Some of th e
m ost relev an t factors involved are, (a)
th e relation of tim e m oney to to tal
deposits, (b) w h e th e r a b an k is a
“loan” b an k or a “bond” bank, (c)
th e fluctuation of deposits du rin g a
calendar year.
G enerally, how ever, th e ratio s we
have followed in th e p ast are being
altered to some degree. Basically, I
have recom m ended th a t banks m ain
tain a m unicipal account betw een 10
and 15 percen t of deposits, and a m a
tu rity schedule th a t affords an ap
proxim ate 10 to 15 percen t liquidation
or roll-over every year. The larger
Not for many years has the net income advantage offered
th e m unicipal account, th e sh o rter the
by tax-exempt bonds been so important to banks . . . nor
m a tu rity schedule.
T
for today’s banking needs
have offerings been in broader selection.
The exceptional diversity of our current tax-exempt
offerings is a direct result of long and constant activity
in the underwriting and distribution of these securities.
In 1961, for example, Halsey, Stuart purchased 206 such
issues totaling $1,218,762,000, either as sole underwriter
or manager or co-manager of underwriting accounts. In
addition, we participated in the underwriting and distri
bution of 38 tax-exempt issues managed by others,
totaling $980,291,000.
Well aware of the current investment needs of banks,
we feel sure you will profit from examination of our
latest offering list. Send for it today, without cost or
obligation.
H A L S E Y , S T U A R T &. C O .
123 S O U T H LA S A L L E S T R E E T , C H IC A G O 9 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
In c .
• 3 5 W A LL S T R E E T , N EW Y O R K 5
A N D O T H E R P R I N C I P A L C I T IE S
N o rthw e ste rn Banker, March, 1962
Hr
*
a
►
Y
y
T
Extended Maturity
In some cases now, how ever, it is
deem ed advisable to go beyond th e
10-year m a tu rity range up to 15 years,
b u t a t th e sam e tim e to m ain tain an
equal am ount m atu rin g each year. In
order to m ain tain a conservative li
quidity position, how ever, th e average
m a tu rity of th e g o vernm ent bonds
held in th e portfolio m u st be reduced.
All p resen t indications point to a
h igher in te re st ra te level for th e re st
of th is year. I t m u st be realized, how
ever, th a t we are not o p erating in a
free m oney m arket, and if business in
th e last six m onths of th is y ear w ere
to become disappointing, th e F ederal
R eserve w ould be u n d er p ressu re for
low er rates. U nder p resen t m o n etary
and fiscal policies, it is certain ly be
yond m y capabilities to tr y to estim ate
w h a t in te re st ra te s w ill be six w eeks,
six m onths, or a y ear from now. Over
a period of tim e I am sure th a t some
bonds I sell w ill look high priced and
some w ill look cheap. A n average
ra te is our goal.—End
N
b
Hy
H
A
A
r\
In v e s tm e n ts
M a n y ßanJzd, /fo e
jß e n y tk e n ln y Matu^L¿t¿e¿
JO H N E. VAN HORNE
P resident
Van H o rn e In v estm en ts, Ine.
O m ah a, N ebraska
IT H in creased costs and savings tu rin g in each year. S horter bonds
in te re st, m an y b an k s are faced to fill gaps in m atu rities caused by
w ith th e problem of a n a rro w e r spread
g ro w th or called bonds m ay th e n be
or m arg in b etw een th e ir m oney costs purchased, too, from tim e to tim e.
(i.e., o p eratin g expenses plus in te re st
R evenue bonds m ay be utilized in
paid) an d earn in g s—to ta l income.
a portfolio to help w eight average
A h a rd and fast rule for easing th is yield upw ard. These of course are
problem is im possible, b u t p erh ap s h ig h er risk bonds and so m ore discre
th is m ig h t be a tim e fo r each to review tio n as to quality should be exercised
his situ atio n w ith a view to w ard fu r and a lim it of n o t over 20 p ercen t of
th e r im provem ent. In doing so, m an y to tal m unicipal bonds ought to be set.
w ill find th a t th e y could w ell increase
m unicipal holdings. (N ew Y ork banks
increased th e irs 27% last year.) F irst,
th e rese rv e re q u ire m e n ts as set out by
th e vario u s su p erv iso ry au th o rities
m u st be m et, b u t once m et, p erh ap s
m an y b an k s are n o t fully u tilizing
th e balance of th e ir funds over and
above w h a t a re considered adequate
reserves. T hese funds, in fairn ess to
th e b a n k ers and stockholders should
be p u t to w o rk by p ro p er use of a
full in v e stm e n t pro g ram over and
above actu al loans, ra th e r th a n an tici
pated in creased loan dem and, as use
of bills or sh o rt-term agencies can be
m ade d u rin g seasonal loan fluctuation.
W e find th a t m an y b an k s are le n g th
ening m a tu ritie s now into th e 10 to
12-year ran g e as th e y are finding th a t
little b it b e tte r yield th e re and also
have d eterm in ed th a t th e y u n d o u b ted
ly w ill n o t have to use th e funds th ey
have in v ested in m unicipals. A m unic
ipal portfolio can be easily established,
m anaged, an d controlled by settin g
policy first, th e n sticking to it. Some
conserv ativ e ratio s w h ich w e use as
a guide and cross-check, expressed as
percen tag es so th a t dollar am o u n ts are
th e n set, are as follows:
W
35
Also one m u st rem em ber th a t each
issue can only be p u rchased to th e
ex ten t of the b a n k ’s loan lim it.
Supply of m unicipals and outlook
for th em in the ban k range of m a tu ri
ties is a little tig h t at the m om ent
and from all appearances w ill rem ain
so; how ever th ey are com ing along
steadily and supply and dem and
should rem ain p re tty w ell balanced.
W ith good acceptance of governm ent
4 p ercen t bonds and w ith an equiva
lent yield difference in th e 10-year
range of from IV2 to 2 percent, it
w ould appear th a t ra te s have about
arriv ed in line. T here is no th in g th a t
I can see in th e n ear fu tu re th a t w ould
force yields on
any terrific tu rn
around. F o r th e m om ent this w ould
seem to hold tru e for the balance of
at least th is half, if not th e w hole
year.
Sam ple R atios
T en to 15 p ercen t of to tal assets
can safely be p u t into m unicipal bonds
an d can be fu rth e r held in balance
by settin g 20 to 25 p e rc e n t of th e total
in v ested in bonds as th e level for
m unicipals. I t should be k ep t in m ind,
how ever, th a t in sm aller b an k s m u n ic
ipal to tals m ay be low er th a n th at,
w hen sufficient to b rin g taxable b an k
incom e below th e 52 p ercen t b rack et
level.
W ere a b a n k to go to ten-year m a tu r
ities, th e n ap p ro x im ately one-tenth of
th e to ta l should come due each year,
allow ing th e p u rch ase of bonds due in
10 y ears to replace th e one-tenth m a
No rthw e ste rn Banker, March, 1961
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
36
In v e s tm e n ts
R enetued 9nten.e¿i in
ß m m fit 9ncam e,
or o th er taxable securities. W e b e
lieve tax-exem pts to be ideal for th is
purpose.
A.
H oldings Increased
HAL F . CHILDS
V ice P resid en t
C hiles-Sclm tz C om pany
O m ah a, N ebraska
HE recen t increase in in te re st
rate s paid by b anks on savings
accounts has caused a g re a t m an y
banks to tak e a closer look at th e ir
in v estm e n t account, and has stim u
lated a renew ed in te re st in ta x ex
em pt incom e provided by m unicipal
bonds. T his problem is seldom exact
ly th e sam e in an y tw o b an k in g
in stitu tio n s, as th e situ atio n varies,
depending upon reserv e req u irem en ts,
seasonal or cyclical dem ands, deposit
tren d s and c u rre n t balance of m u n ic
ipals in th e in v estm en t account.
F ro m th e above we m ay deduce
th a t th e sam e basis of ap proaching
th e problem of creatin g or increasing
th e tax exem pt incom e account is
n ever exactly th e same; b u t based on
p ast experience and th e m unicipal
holdings of a g re a t m an y banks, in
cluding both large and sm all, it ap-
T
p ears th a t an account w hich equals
10 p ercen t of th e deposits, is not out
of balance. In a g reat m any fine b an k
ing in stitu tio n s th e percentage of tax
exem pts in relatio n to deposits w ill
v a ry from 10 percen t to 15 percent;
and in a nu m b er of in stitu tio n s w here
th e basic factors m entioned earlier are
considered, it is n ot u n u su al to find
th is percentage ru n n in g 20 percen t of
deposits. T here are some banks w hich
relate th e ir tax exem pt holdings to
th e ir tim e deposits and c arry at least
th e sam e balance in th e m unicipal
account th a t is m ain tain ed in tim e de
posits.
A g re a t m any banks, or those w ith
a sm all m unicipal account or none
a t all, have found th a t a sound basis
to s ta rt building such an account is to
pledge th e ir m unicipals for public
funds in stead of using G overnm ents
MUNICIPAL BONDS
FOR INVESTMENT
STA TE
COUNTY
C IT Y
SCH O O L
FREE FROM ALL FEDERAL INCOME TAXES
FREE FROM MONEYS AND CREDITS TAX IN IOWA
THE WHITE-PHILUPS CO., INC.
First National Bldg.
DAVENPORT OFFICES
Phone 326-2527
Teletype DV 84
201 Fleming Bldg.
DES MOINES OFFICES
Phone AT 2-1456
Teletype DM 73
38 S. Dearborn St.
CHICAGO OFFICES
Phone FI 6-3336
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Teletype CG 2175
Since th e increase in in te re st paid
on savings accounts, a nu m b er of
banks have given th o u g h t to offsetting
th is increase by increasing th e ir hold
ings of m unicipals, and by len g th en in g
th e m atu rities of bonds in th e account
in order to obtain a h ig h er yield on
th e ir investm ent. A recom m endation
to len g th en m atu rities, increase hold
ings, or both, can only be m ade w hen
th e im p o rtan t factors of p resen t hold
ings, deposits, reserves, cyclical re
quirem ents, etc., have been tak en into
consideration. In m y personal know l
edge, I know of no b an k th a t failed
because of excessive holdings of good,
sound m unicipal bonds. T here m ay
have been a tim e w hen it w as neces
sary to take losses in a m unicipal ac
count, b u t to th e b est of m y know ledge
g re a te r losses have usu ally been ab
sorbed in o th er investm ents, often
including th e loan portfolio.
W e believe it is possible, w h en all
of th e p e rtin e n t factors are tak en into
consideration, in m ost instances, to
increase th e average b an k m unicipal
portfolio and to lengthen th e m a tu ri
ties on a sound basis, and so increase
th e ir earnings.
T here are m any services th a t occa
sionally “stick th e ir necks o u t” to th e
ex ten t of prognosticating w h a t in terest
rates are going to do in th e future,
based on know ledge and p articu lar
form s of ch arts and p ast history. U su
ally, w hen such prognostications are
made, th ey are p rotected to some
degree by a form of hedging w here the
w ord “if” is used in relatio n to situ a
tions th a t m u st also accom pany such
anticipated changes. A lm ost everyone
in th e b anking fra te rn ity , as w ell as
those of us in th e in v estm en t banking
group, have our own ideas, b u t w hen
th e tim e comes to purchase tax exem pt
securities, m ake additional loans, or
tak e certain m ortgages, th e final deci
sion is up to th e in stitu tio n m aking
those decisions; and we have found,
over th e years, th a t v ery few of us
are alw ays able to b u y at th e low and
sell at th e high.
I t is our opinion th a t those of us
w ho deal in m oney have done a v ery
good job if we m anage to obtain the
average yield available, or th e av e r
age in te re st ra te available over a given
period of years.
I t seem s to us th a t th e fu tu re supply
of m unicipals and th e dem and for
m oney to m eet th e v arious m unicipal
req u irem en ts w ill be adequate, and
as m uch of th is type of m erchandise
Y
>L
V
y
y
y
X
K
U
4
H
y
H
In v e s tm e n ts
w ill be available in th e y e a r 1962 as
w as available in 1961.
We have no c ry sta l ball w h ereb y
w e can o btain a positive an sw er as to
th e econom ic fu tu re as it affects all of
u s in our respective businesses. The
m a tte r of im p ro v in g n e t re tu rn to our
ow n in stitu tio n s is one th a t w e m u st
all m eet from day to day by m aking
p ro p er ad ju stm e n t to th e factors affect
ing o u r business. W h ere favorable
p ercentag es are in evidence, w e be
lieve m ost b an k portfolios can be suc
cessfully len g th en ed and n et earn in g s
increased.
SUPPLY AND DEMAND . . .
(C ontinued from page 30)
A gainst th e backg ro u n d of th is u n
com m on play of econom ic forces and
prospects, W ash in g to n is m aking re
assu rin g m oves. In creasingly, th e
accent in F ed eral m oney m anagem ent
is being placed on b udget spending
and tax atio n , ra th e r th a n on m o n etary
an d cred it policy. T h ere seem s to be
a sincere effort, even if as y e t incon
clusive an d ineffectual, to use th e arm
of tax atio n as an incentive, ra th e r
th a n a disincentive to p riv ate e n te r
prise. A nd th e re is a p e rsiste n t effort
to foster in te rn a tio n a l tra d e on a tru ly
com petitive basis, u n c lu tte re d by ta r
iffs, quotas and o th er sta tis t in te rfe r
ences w ith laissez-faire liberalism .
Refundings
T he accom panim ent of th e in v e st
m en t m a rk e ts to th is political spec
tacle has been an e n tre n c h m e n t of
yields in th e fixed-income area th a t
are rea ssu rin g to in v esto rs an d have
a h isto rical w orth. T he T re a su ry 's
readiness to live w ith 4 p er cent w as
evidenced tw ice in recen t w eeks. The
4 per cen t bond issue due in 1969 w as
reopened for about $1,000,000,000 of
new su b scrip tio n s to raise cash. In
th e w ake of th is tran sactio n , th e
T re a su ry effectuated a refu n d in g of
four m a tu rin g issues to talin g $11,700,000,000 by an exchange offering of
e ith e r one-year 3% p er cen t certifi
cates of indebtedness, or 4 p er cent
notes due in A u g u st of 1966. N early
$3,000,000,000 w as co nverted by p ri
vate in v esto rs in to th e 1966 notes.
37
WE OFFER A COMPLETE
LOCAL INVESTMENT
BANKING SERVICE
WITH OVER 50 YEARS
EXPERIENCE S tarting in 1910
with limited capital and modest facilities,
Kalman & Company has become one of
the largest and most active investment
firms in the entire Midwest. Our capital
today exceeds $1,000,000. We combine
over half a century of experience, integ
rity and tradition with extensive modern
facilities. Because our home office and
executive staff are rig h t here in the
Twin Cities, we can give prompt service
at the local level. We are engaged not
only in selling securities, but in every
phase of investment banking.
■ PORTFOLIO PLANNING
CHASE A N D
AN D
■ PUR
SALE OF LISTE D
U N L IS T E D
S E C U R IT IE S
■ U N D E R W R ITIN G OF CORPOR
ATE
AND
MUNICIPAL
C U R IT IE S
MENT
« P R IV A T E
OF
SE
P LA C E
LONG-TERM
FI
NANCING ■ ESTATE APPRAISALS
S avings R ate a F a c to r
T he choice of th e 4 p er cen t issues
w as probably suggested in both cases
by c u rre n t rev am p in g of com m ercial
b an k in v e stm e n t portfolios follow ing
th e decision of th e F ed eral R eserve
System to let th e b ank s raise in te re st
ra te s on tim e deposits from 3 to 3%
p e r cent, an d ra te s on deposits held
m ore th a n one y e a r to 4 p e r cent.
M ost b an k s a t once exploited th e
raised in te re st ceiling to cap tu re new
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
KALMAN & COMPANY, INC.
IN V E S T M E N T S E C U R IT IE S ■ E S T A B L IS H E D 1910
Saint
Paul
■
M in n e a p o lis
■
M inot
N o rth w e ste rn Banker , M arch, 1962
38
In v e s tm e n ts
tim e deposits. M uch of th e savings
inflow th u s baited w as p u t b y th e
banks to use a t once in buy in g taxexem pt bonds of m unicipal and state
govern m en ts w ith m a tu ritie s ru n n in g
out to 20 years. T his new dem and
b ro u g h t about a red u ctio n of about
one-fourth of one p er cent in th e m a r
k et yields of such secu rities and
sp u rred heavy additions to th e back
log of new local g o vern m en t b o rro w
ing.
F ed eral agencies and o th er semigovern m en tal l e n d i n g in stitu tio n s
have been quick to tak e advantage of
th e sh ift to a sellers’ m a rk e t in bonds.
W ith in tw o w eeks $500,000,000 of
bonds all b earin g 4V2 p er cent in te re st
w ere m ark eted successfully b y th e I n
te rn atio n a l B ank for R econstruction
and D evelopm ent, th e F ed eral N a
tional M ortgage A ssociation, th e F e d
eral L and B anks and th e T ennessee
V alley A u th o rity .—End.
Government Portfolio P olicy
(C ontinued from page 29)
b u t also is becom ing m ore and m ore
defensive in nature.
O perating in th e favor of b an k ers
d u rin g th e last ten years, has been a
risin g secular tre n d in in te re st rates
and, d u rin g th e last tw o years, a sh o rt
te rm in te re st ra te stru c tu re th a t has
rem ain ed reasonably high in co n trast
to p ast recessionary periods w hen
ra te s have dropped to v ery low levels.
In spite of th e sh o rten in g of p ortfo
lios, th en , th e ra te of re tu rn on gov
e rn m e n t securities in S eventh F ed eral
R eserve M em ber banks has risen from
2.0 per cent in 1953 to 3.16 p er cent in
1960. I t is difficult, a t th is tim e, to
project such a favorable tre n d for the
fu tu re. In fact, one y ear afte r th e
bottom ing out of th e 1960-61 recession,
in te re st rates rem ain a long w ay from
th e ir levels in 1959 and early 1960.
How then, is th e b an k er to m axi
mize governm ent portfolio earnings in
th e fu tu re? As a v ery basic change in
philosophy, th e re w ill p robably be
g reater em phasis in th e fu tu re on cu r
re n t earnings in th e portfolio ra th e r
th a n capital gains. Securities w ill be
bought on a basis of w h at th ey w ill
b rin g a b an k in term s of an n u al in
come ra th e r th a n in capital gains at
m atu rity . The effort to m ain tain b ank
earnings m ay m ake a 4 p er cent cou
pon ra te m ore attra c tiv e th a n a 2Va
p er cent rate, even th o u g h th e g reater
afte r tax dollar advantage over th e
life of th is issue m y lie in th e 2% p er
cent security.
T his m ay seem u n a ttra c tiv e to the
devotees of th e “after ta x ” colum n on
th e governm ent quote sheet, b u t it
m u st be rem em bered th a t in te re st
ra te cycles can also create good oppor
tu n ities for capital gains in th e hig h er
coupon issues. I t can v e ry cogently
be argued th a t these o pportunities are
not as g reat as in th e low er coupon
issues, b u t nevertheless, th ey are
there. The b an k th a t trad es its secu
rities in frequently, probably is b etter
off in hig h er coupon issues w here it
is assured of reasonable c u rre n t e a rn
ings ra th e r th a n tak in g chances on
in te re st ra te sw ings to provide a good
re tu rn on low er coupon investm ents.
Higher Coupon Issues
A nother im p o rtan t a ttrib u te of h igh
er coupon issues is th e protection the
coupon ra te itself gives a bank. W ith
a 4 p er cent coupon ra te th e in vestor
gains th e equivalent of one-thirty-sec
ond in price every 2.9 days. T his
m eans th a t as each 2.9 days go by, a
4 p er cent bond can be sold at onethirty-second low er price and allow
th e inv esto r to still b re a k even. I t
takes 4.6 days at 2V2 p er cent to earn
one-thirty-second.
Tim ing of pu rch ases and sales is, of
course, alw ays im p o rtan t and b e tte r
tim in g w ill be essential in th e fu tu re
if earnings are to be m aintained. This
is probably th e m ost im p o rtan t aspect
of portfolio m anagem ent and th e m ost
difficult. H ere again th e hig h er cou
pon issues c a rry m uch attraction. It
is a g reat deal easier to live w ith a
m istake m ade in a 4 per cent issue
th a n one m ade in a 2% p er cent se
curity. B anks w ho are unable or u n
w illing to tak e portfolio losses should
p artic u la rly avoid low er coupon se
curities.
Im provem ents in tim in g can be
achieved by a m ore com plete know l
edge of economic factors and th e ir re-
N o rth w e ste rn B anker, M arch, 1962
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Federal Reserve Bank of St. Louis
In v e s tm e n ts
lation to in te re st ra te tren d s. Close
contact w ith th e g o v ern m en t secu ri
ties m a rk e t is essential. Some b an k s
provide form al in v estm en t advice for
th e ir co rrespondents. T his a d v ic e
should be ta k e n advantage of and used
regularly , an n u a lly a t a m inim um .
Beyond this, efforts should be m ade to
m ake m istak es in tim in g less h arm fu l
w h en th e y occur. H ig h er coupon is
sues and conserv ativ e m a tu ritie s are
tw o w ays to m inim ize th e effects of
bad tim ing.
Secondary Reserves
P rob ab ly th e area w hich receives
th e m ost casual a tte n tio n in com m er
cial b an k in v estm en t policy is the
m anag em en t of so-called secondary re
serve position. T hese are th e funds
w hich are g en erally invested in sh o rt
te rm secu rities in o rd er to provide
liquidity for seasonal and unexpected
needs. The g en eral p a tte rn of th is in
v estm e n t ru n s to co n cen tratio n in
th re e m o n th T re a su ry bills regardless
of m ark e t conditions. A t tim es, th is
in v estm en t in v e ry sh o rt bills m ay be
ap p ro p ria te w h en an expected w ith
d raw al m u st be m et in th e n e a r fu tu re
or w hen it is an ticip ated th a t in te re st
rates m ay rise rap id ly in th e m onths
ahead. A t o th e r tim es, how ever, sec
on d ary reserv e funds could w ell be
p u t in one y e a r or longer securities
th u s realizing a b e tte r in v estm en t re
tu rn .
W hen th e 4% p er cent and 5 p er
cen t notes due in 1964 w ere originally
issued, few felt th e y w ere an ap p ro
p riate secondary reserv e in vestm ent.
T hey have, how ever, sold at a p rem i
um , p ractically since issuance and it
seem s doubtful th a t in th e fu tu re th e y
w ill ever sell a t a discount. T his is
c ertain ly n o t to say th a t liquid funds
should be placed in five-year m a tu ri
ties, b u t it does illu stra te th e p ro tec
tio n th a t a w ell tim ed in v estm en t can
give. C ertainly, th e re w ill be tim es
w h en secondary reserv e funds need
n o t be confined to th re e m o n th T reas
u ry bills.
A n excellent o utlet for sh o rter term
m oney exists in F ed eral A gency Is
sues. These issues of the F ederal
L and B anks, F ed eral H om e Loan
B anks, F ed eral N ational M ortgage As
sociation, F ed eral In term ed iate Credit
B anks and B anks for Cooperatives,
w hile n ot gu aran teed by the F ederal
govern m ent are of top quality and
g enerally considered as “non-risk” as
sets. P roviding a re tu rn of from .20
to .50 p er cent over com parable m a
tu ritie s in g overnm ent securities, and
enjoying an increasingly active tra d
ing m ark et, th ey are a v ery a ttractiv e
a lte rn a tiv e for s e c o n d a r y reserve
needs.
Outlook
In looking to the balance of 1962, it
seem s likely th a t banks w ill have an
o p p o rtu n ity to increase th e in v est
m en t re tu rn s from th e ir governm ent
securities portfolios. The T reasu ry
has already offered investors 4 per
cent bonds due in 1969, and 1971, as
w ell as a 4 per cent note due in 1966.
An expanding econom y and a heavy
F ed eral refu n d in g schedule th is year
seem ingly indicate th a t th e fu tu re w ill
b rin g sim ilar or b e tte r opportunities.
E ach offering should be evaluated in
the light of m ark et conditions p rev ail
ing at th a t tim e and th e basic needs of
the b an k in question. The p ressu res
bro u g h t by increasing o perating ex
penses m ay force too h asty a move to
lengthen m aturities. On the o ther
hand, extensive w aiting m ight re su lt
in m issing the hig h er yields. P ro b
ably, the best course at p resen t lies in
a program of gradual extension as op
p o rtu n ities p resen t them selves, u n til
a b e tte r idea of th e fu tu re m ay be
gained.
N ational Trust S chool
T he th ird an n u al session of th e N a
tional T ru st School, educational activ
ity of the tru s t division of th e A m eri
can B ankers A ssociation, w ill be held
A ugust 6-24 at N o rth w estern U niver
sity, E vanston, 111.
JAMES C. SHAW
p. McDe r m o t t
ROBERT J. KIRKE
th om as l. w orm ley
ow en
S h .
39
aw , ]Vf c L ) e r u i < ) t l
f> -
MUNICIPAL BONDS EXCLUSIVELY
Underwriters and Distributors
of
County, City, School and Revenue Bonds
916 Liberty Bldg.
DES
Phone CH 3-6119
MOINES
COMMERCIAL
PAPER
9,
IOWA
COLLATERAL
.
176 W est A dam s Stree
CHICAGO 3, ILLINOIS
Telephone RA 6-5432
Northw estern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
40
In v e s tm e n ts
Investment
lips of
HuElect Moines;
C entral N ational Bank, Des
N orm an Conway of Conway
B rothers, Des Moines; Jo sep h E. Casey
of C arleton D. Beh Company, Des
Moines, and S. G. B arnard, B ankers
T ru st Company, Des Moines, all of
w hose term s expire in 1963. E rn e st
K osek of E rn e st K osek & Company,
Cedar Rapids; Malcolm M cKenzie of
M errill Lynch, Pierce, F e n n e r &
Sm ith, Des Moines; Lee M. R oeder of
A. C. A llyn & Company, W aterloo, and
George W. V eith of V ieth, D uncan &
Wood, D avenport, w hose term s expire
in 1964.
A
i
Y
New M arketing D ivision
JE R R Y E IE D L E R , l e f t, of W h ite P h illip s C om pany, D a v e n p o rt, is c o n g ra tu la te d on his
e le c tio n as p re s id e n t o f th e Io w a I n v e s tm e n t B a n k e rs A s so c ia tio n b y E rn est K osek,
rig h t, o f E rn e s t K o se k & C om pany, C e d ar R a p id s, r e tir in g p re s id e n t. S econd fro m le f t
is R. G-. D ickinson , o f R. G. D ic k in so n C om pany, D es M oines, n ew 2nd v.p., a n d second
fro m r ig h t is R ay J. A llender, o f C a rle to n D. B eh C om pany, D es M oines, w ho w as r e
e le c te d s e c re ta ry -tre a s u re r. R u ssell E . K n a p p , S e c u ritie s Corp. of Io w a , C ed ar R ap id s,
new 1 st v.p., w a s n o t p re s e n t fo r th e p ic tu re .
N ADDITION to those show n and dent, and Roy W. Leriche, F irs t of
nam ed above, th e follow ing w ere
Iow a C orporation, Des Moines.
elected a t last m o n th ’s an n u al m eet R etirin g from th e board w ere: Jack
Sparks of Sparks & Company, Des
ing of th e Iow a In v e stm e n t B ankers
A ssociation, held a t th e Des Moines Moines; W illiam P. M orrissey of M or
rissey & Company, D avenport, and
Club, in Des Moines.
J e rry F iedler, th e new president, Jam es Cownie, Becker & Cownie, Inc.,
w as nam ed to th e board of governors Des Moines.
M em bers of th e board, in addition
for a three-y ear term . So w as R. G.
D ickinson, th e new second vice presi- to th e newly-elected, are: W ard P h il
I
ST. PAUL/DULUTH/SOUTHDALE/BILLINGS/ CASPER/GREAT FALLS/SIOUX FALLS
iAlIlllilLTl
E ig h t offices thro u g h o u t
the Northwest with complete
investment service for banks,
individuals and institutions.
J.
M.
Da in 8c Co., I ng .
M
i n n e a p o l i s
E stab lish m en t by U nited California
B ank of a new m ark etin g d ep artm en t
has been announced by F ra n k L. King,
ch airm an of th e
board, Los A nge
les.
G e o r g e
C.
Briggs, vice p resi
dent, is in charge
of th e d ep artm en t
w hich i n c l u d e s
th e functions of
a d v e r t i s n g and
p u b l i c i t y , sales
p r o m o t i o n , eco
G. C. B R I G G S
nom ic r e s e a r c h ,
sales planning, and publications.
T he economic research section w ill
provide estim ates of fu tu re economic
and m ark et conditions as w ell as spe
cial in d u stry reports.
H onor T ilden Cum m ings
Tilden Cum m ings, president, Continental-Illinois N a t i o n a l B ank and
T r u s t Company,
Chicago, has been
elected a tru ste e
of th e F o u ndation
for C o m m e r c ia l
B a n k s , succeed
ing G aylord Freem a n, J r., v i c e
c h a irm a n , T h e
F ir s t N a tio n a l
Bank, Chicago.
Mr. Cum m ings
w ill r e p r e s e n t
F ed eral R eserve D istrict 7, including
Illinois, Iowa, Indiana, M ichigan and
W isconsin.
W
a yne
H
u m m e r
A
P
y
Df
Y
'i
À
k
4
& Co.
CHI CAGO
y
2
M EM BER NEW YORK S T O C K EX C H A N G E
Phone: FE 3-8141
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
MEMBERS
NEWYORK STOCK EXCHANGE
A
41
Credit information for you at their finger
tips. Our comprehensive credit files can provide “same day”
replies to your inquiries. This is one way we help our
correspondents. We’d like to help y o u !
HARRIS“ B A N K
Organized as N . W. H arris & Co. 1882— Incorporated 1907— Member Federal Reserve System __Federal Deposit Insurance Corporation
111 W EST M ONROE S T R E E T —CHICAGO 90
N o rth w e ste rn Banker, March, 19 62
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
42
Weils
12-Stovy
Fartjo
first-floor
m ezzanine and escalator.
Ita ahOptais
Star
The public lobby, epitom e of b an k
ing’s new elegance, com bines rich m a
IIeat!quarters
terials in unexpected ways. Red V er
R E C E N T L Y O PE N E D S an F ra n c isc o h e a d q u a rte rs of th e W ells F a rg o B a n k fe a tu re s
a n o p u le n t b a n k in g room m ade up- of m arb le, te a k a n d sta in le s s ste el. T he 46-foot
c irc u la r c eilin g fix tu re is a c lu s te r of alu m in u m c irc le s fitte d w ith c ry s ta l lenses.
EH IN D gleam ing glass doors at B ank (fo rm erly W ells F argo Bank
464 C alifornia S treet in San F ra n A m erican T ru st Com pany) m akes an
cisco stretch es one of th e m ost s trikexciting
in troduction to the new blocking and spacious b an k in g room s in th e
long, 12-story stru ctu re.
w est.
,
U nder construction for five years,
T he m ain floor of th e recently- th e building w ill be com pleted in Ju n e
opened h e a d q u a rte rs of W ells Fargo
of th is year. W ork continues on a
B
National Boulevard Bank of Chicago
In the
Wrigley Building •
T a ilo r-m a d e
correspondent
b ank services
-AJTJ5L
400-410 N.
Michigan Ave. ♦ Superior
7-2323
ona m arble, both tex tu re d and pol
ished, is used for th e walls. Tum bled
black Belgian m arble pebbles form
floors and staircase, w ith counter tops
for th e savings and com m ercial de
p artm e n ts of plain black Belgian m a r
ble. Teakw ood paneling lines w alls
n ear th e officers and w aitin g areas.
U nfinished surfboard-shapes of teak
stand as d ep artm en t indicators.
Panels of interlocking stainless steel
rings, a m etal lace, are used in decora
tion. Steel also form s trim s and divid
ers.
L iteral h ig h lig h t of th e banking
room is the 46-foot circu lar ceiling fix
ture. A n etw o rk of alum inum circles
set w ith cry stal lenses, it is th e central
source of light and air. In th e outer
ring, fresh air ducts feed into grilles.
Tall m arble colum ns seem to sup
p o rt th e honeycom b ceiling. A ctually,
su pports for th is open plastic grid are
hidden, as are the overhead fluores
cent tubes w hich provide over-all
light.
Two unexpected accents are: a sm all
garden of Japanese trees and ferns
sp ro u tin g in one m ain floor corner,
and a fo u n tain w ith reflecting pool of
glass m osaic tile at th e bottom of the
sw eeping circular staircase leading to
the safe deposit foyer.
R eview ing progress d u rin g 1961,
Ransom M. Cook, president, cited the
largest annual deposit grow th in the
b a n k ’s history, an increase of $263 m il
lion for a percentage gain of 10.7.
He told stockholders th a t th e b ank
now operates 131 branches in 20 n o rth
ern California counties after additions
in 1961 of 10 new bran ch es and tw o
new counties. It has authorized p e r
m its for 15 additional offices w ith 21
m ore b ran ch applications w aiting ap
proval by th e su p ervisory authorities.
The b an k opened a far eastern rep
resen tativ e office in Tokyo, Mr. Cook
rep o rted to stockholders, and in San
F rancisco m oved its electronic ac
counting and o th er service d e p a rt
m ents into a seven-story operations
center.
Douglas-G uardian P rom otions
Jo h n J. Voelkel, Jr., president, and
Neil A. B ryning, vice p resid en t and
g eneral m anager of the; Douglas-G uard
ian W arehouse C orporation, New Or
leans, have announced th e follow ing
m en have been nam ed vice p residents
of th e firm: C harles C. C arpenter, A t
lanta; Gene V. Cox, Dallas; G ilbert R.
Bodet, Los Angeles, and Jam es L.
M angan, Tam pa.
No rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
43
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Name of lnstitution_
_State_
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By— -----------------
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N o rth w e ste rn Banker, M arch, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
44
More
are looking for th is type of m aterial.
P ro fits for Smaller Hanks
In our own shop, we collected 82 per
(C ontinued from page 26)
know a b a n k e r w ho doesn’t use th e
term s, “Tim e D eposits” or “C ertif
icates of D eposit.” He calls th em
“F irs t S tate B ank Savings B onds.”
E. K. Yanney: W e had a poor year
for in sta llm e n t cred it and decided to
develop a profitable phase of in sta ll
m en t cred it on auto. W e found th e
m ost im p o rta n t factor in th is w as
break in g dow n th e b a rrie r betw een
th e b an k officer’s desk and th e m an in
fro n t of the desk w ho w an ted a loan.
W e now say, “The m ajo r difference
betw een th e b an k s of y e ste rd a y and
th e bank s of today is th e m a n n e r in
w hich th e custom er is tre a te d .”
W. Ed. Coblentz: 1952 to 1955 w as
d ry in our area and w e offered to
help our people have new wells. The
800 new w ells a t $500 each w as quite
a p roject for a b an k our size, b u t we
offered 60 p er cent and th e y h ad to
come up w ith 40 p e r cent. M ost of
th em did it an d are glad th e y did.
W e carried th em rig h t on to o th er
item s, such as new b arns, etc. Also
we have encouraged cattle feeding
and have m ade m any cattle feeder
loans.
Decide Profitable Rate
Herman A. Brockmeier: W hen w as
th e last tim e you considered th e rate
of in te re st on y o u r loans? Is your
b an k one th a t charges th e sam e rate
y ear a fte r y ear regardless of the
value of m oney? P erh ap s th is is all
rig h t if th e ra te has been th e top rate
and the people of th e com m unity have
been w illing to pay th e rate, or is
y o u r b an k one th a t has had a low
ra te th e p ast 20 years and probably
has m ade only th e loans w hich ju stify
th e rate. W ouldn’t it be w ell to sit
dow n and figure a ra te tak in g into
consideration th e cost of m oney, th e
risk involved and th e length of tim e
and am o u n t of w o rk necessary to
service th e loan?
One w ord of caution on service
charges: Do it on y o u r own and don’t
get everybody in th e ban k to agree
w ith you. The an ti-tru st atto rn ey s
WHAT’S WITH HUM BERS?
W hen you dial a wrong telephone
number, a w ell-m odulated voice
will tell you: “Your call cannot be
completed as dialed. Please check
the number and dial again.” N o
pain . . . you simply do what you
are told to do. However, it cost
the telephone people millions o f
dollars to provide the controls
that trigger this message, so they
must have recognized that a lot o f
wrong numbers would be dialed.
W hen you try to process a check
with the wrong account number,
the watchful eye o f the machine
will send the check into the reject
pocket. This causes more annoyance
than dialing a wrong telephone
number because (1) you have to
get the customer’s checks reprinted,
(2) you must be alert to subsequent
rejects so you w on’t get the checks
reprinted twice, and (3) you have
to get the old checks out o f the
system. It goes w ithout saying that
the reason the machine people built
this detector into the machine was
because they recognized that a lot
o f wrong numbers would be printed
on checks.
H ow right they were! W ith MICR
barely off the ground, we have
already encountered some costly
errors in account numbers. W e, of
course, were responsible for many
o f them. Others were due to me
chanical failure o f the devices used
to compute checking digits. Some
were due to errors in assigning ac
count numbers. Still others were
the result o f faulty transmission,
either in writing or over the phone.
The point is that anyone can make
mistakes in numbers. They create
far more exposure to error than
names, because we read names
whereas we recite numbers. Any
one can put a seven-letter word in
his human memory drum and re
call it whenever he wishes, but no
one can store a seven-digit number
and recapture it in proper sequence
even ten seconds later. A good
healthy fear of numbers will reduce
errors to a bare minimum. W e
hope you share our fear.
DELU XE CHECK P R IN T E R S
C L IF T O N
C H IC A G O
N o rf hw estern Banker, M arch, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NORW ALK
K A N S A S C IT Y
PA O LI
CLEVELAND
ST. PA U L
D ALLAS
D E T R O IT
INC.
IN D IA N A P O L IS
C H A TSW O RTH
PO RTLA N D
cent m ore in revenue on reg u lar
m o n th ly service charges in 1962 over
w h at we did in ’60. The $2 we charge
for re tu rn in g a n ot sufficient funds
check b ro u g h t in $31,982 in ’61 com
pared w ith $18,256 for ’60 (Only $1
charge). Only one person com plained
th at it w as g ettin g too costly to w rite
bad checks. I am n o t advocating every
charge on th e follow ing list, b u t if
you are going to m ake a charge, m ake
it large enough to cover th e cost of
doing the w ork plus gaining some
rev enue for yourself:
Income Producing Item s
1. Sale of T ravelers Cheques
2. Sale of Personalized checks to
individuals
3. Sale of Com m ercial checks to
businesses
4. Sale of Savings B anks and
B udget Books
5. Sale of Special (PAYC) check
books
6. Sale of B ank M oney O rders
7. Sale of P ersonal M oney O rders
8. C harge of Certified Checks
9. C harge for Stop P ay m en t Or
ders
10. Charge for handling NSF
Checks
11 Charge for O verdraft Notice
12. Charge for O verdraft p er dol
lar
13. Charge for P aying Checks
over Balance
14. Charge for In su ran ce P rem i
um D rafts
15. H andling Incom ing Collection
Item s
16. H andling O utgoing Collection
Item s
17. H andling Charge on Cream
Checks
18. C ashing Out-of-town checks
for non-custom ers
19. Servicing U tility bills as col
lection agent
20. R en t for Safe D eposit Boxes
21. N ight D epository Service
22. C lerking A uction Sales
23. P rep arin g Incom e Tax Re
tu rn s
24. Servicing M ortgage P aym ents
for Individuals
25. Collection of R en t for Indivi
duals
26. P rep arin g or ty p in g papers for
custom ers
27. N otary Public
28. C redit Life In su ran ce on
Loans
29. A nalysis of L arge B usiness
A ccounts
a. C urrency handling
b. Coin p er w rap p er
c. R e tu rn Item s
30. Real E sta te Sales
31. In stallm en t Loan R ates.—End.
45
..
Y O U R C A S H SYIESVSS
. something else Continental provides as “your bank's bank ,y
Even at night, every night, a full and experienced staff is m aintained here a t Continental
to process cash items. A t the rate of 1,000 a minute! M any checks air-mailed to us in the
afternoon are available funds by the following morning. Our correspondents find this speed
a tremendous advantage. You will, too. Why not let us give you the full details?
C O N T IN E N T A L
ILLINOIS
NATIONAL
BANK
AND TRUST COMPANY OF CHICAGO
Lock Box H, Chicago 90
Member F. D. I. C .
N o rth w e s te rn B anker, M a rch , 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
46
iìu ilder
Reports Sales
U R R E N T and recen tly com pleted $650,000 w oodw orking p lan t a t yearb an k building projects extending end. T he one-story plant, containing
from W aterb u ry , Conn., to Sunnyvale,62,000 square feet, is located on a site
Calif., co n trib u ted to record 1961 sales of four and one-third acres. I t is now
of $29,140,000 for B ank B uilding and in full production, serving banks and
E q u ip m en t C o r- financial in stitu tio n s th ro u g h o u t the
p o r a t i o n , S t. nation.
L ouis 10, Mo.
In m aking the
E quity Financing F in n
a n n u al rep o rt, L.
D oub les Capital
J. Orabka, p re si
Com m erce T ru st Company, K ansas
dent, pointed out City, has increased th e invested capi
that c o m p a n y
ta l of its w holly-ow ned subsidiary,
s a l e s have in Com TrusCo In v estm en t Company, to
creased each year $800,000. T his doubling of capital
for 16 consecutive from $400,000 has been m ade to m eet
years.
The com th e dem ands of sm all business firms
L. J. O R A B K A
p an y en tered 1962 for g ro w th financing.
w ith an o th er high m a rk for business
Com TrusCo In v estm en t Com pany
backlog to talin g $38,000,000.
provides equity financing on a five-
C
The L oughm an C abinet Com pany, a
wholly-ow ned su b sid iary of th e com
pany, began o perations in its new
y ear m inim um term . U nder th e pro
visions of th e Small B usiness In v e st
m en t Act of 1958, n early any type of
NEWEST ALL-YEAR RESORT UNDER THE SUN
lutdC i
A R I Z O N I A N
business firm, w h eth er in th e idea, ex
pansion or acquisition stage, is eligible
to apply for such equity financing.
Offices of th e inv estm en t com pany
have been rem oved from th e ban k it
self to a location in th e Commerce
Building. Jam es H. Linn, vice p resi
dent, w ho has served as loan officer
and m anager of th e b a n k ’s credit de
p artm en t, is assigned to handle th e
firm ’s operations on a full-tim e basis.
A
-I
T
1 0 POINTS TO CONSIDER
(C ontinued from page 25)
equipm ent w ill undoubtedly be em
ployed in th e operation as w ell as in
o ther b an k operations.
• Converting Present Loans—Most
sm aller banks considering the enlarge
m en t and refinem ent of this highly
com petitive and profitable form of
lending know th a t th ey have a t the
p resen t tim e m any loans on th e ir lia
bility ledgers, w hich could be segre
gated and m ain tain ed u n d e r an in stall
m ent loan d ep artm en tal control. M any
of these notes could be converted from
a sim ple in te re st ra te to th e “add-on”
or “discount” type ra te w ith v ery lit
tle difficulty. T his tra n sitio n from the
sim ple in te re st rate to th e “add-on”
type is freq u en tly m ade m ore accept
able by including credit life in surance
in th e rate.
Y
Y
SCOTTSDALE, A R IZO N A
Meeting and
Banquet Facilities
DON DAVIS, General Manager
fo r a f e w ce n ts a c o p y . . .
“ Farming For Profit”
reports pay off
10• New
in better customer
relations
a va lu a b le m onthly se rv ic e report,
lo a d e d w ith inform ation farm ers can
I t co sts so li ttl e , r e q u ir e s so l i t t l e tim e
a n d e ffo rt f o r y o u to s u p p le m e n t y o u r
p r e s e n t p u b lic r e l a ti o n s p r o g r a m
w ith
D o a n e ’s
“ F A R M IN G
FOR
P R O F I T .”
M a ile d m o n th ly , th e s e c o n c is e , tw o -p a g e
r e p o r t s w ill b e a p r e c ia te d a n d r e a d by
y o u r e n t ir e f a r m c o m m u n ity .
“FARM
IN G F O R P R O F I T ” r e p o r t s f o r e c a s t m a r
k e t tr e n d s . . . g iv e v a lu a b le m a n a g e m e n t
g u id a n c e . . . p ro v id e p r a c t ic a l in f o r m a
tio n o n a w id e r a n g e o f f a r m in g s u b je c ts .
R e p o rts a r e p r e p a r e d b y th e s a m e e x
p e rie n c e d s ta f f o f e c o n o m is ts , r e s e a r c h e r s ,
t a x a n d le g a l s p e c ia lis ts , f a r m m a n a g e r s ,
r u r a l a p p r a i s e r s , e n g in e e r s , a n d
o th e r
a g r i c u l t u r a l s p e c ia lis ts t h a t p u b lis h e s th e
fa m o u s
“D oane
A g r ic u l tu r a l
D ig e s t.”
F A R M IN G F O R P R O F I T ” is o ffe re d o n a
p r o te c te d t e r r i t o r y b a s is . Y o u r b a n k n a m e
a n d m e s s a g e a r e p r in t e d p r o m in e n tly a t
th e to p o f e a c h r e p o r t . A d d r e s s in g a n d
m a ilin g th e r e p o r t s c a n b e h a n d le d b y
th e D o a n e o r g a n i z a ti o n i f y o u d e sire .
For complete information about this outstanding service, ju st clip coupon,
attach your name and letterhead, and mail to:
DOANE AGRICULTURAL SERVICE, INC.
N o rth w e ste rn Banker, M a r c h , 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
9 • Set Up Dealer Reserve—A bank
en terin g th e field of autom obile dealer
financing should be prep ared to set
aside a particip atio n in the finance
charge in th e form of a dealer reserve.
It is cu stom ary for th is reserve to be
held as a stated percentage of the
dealer’s co ntingent liability, and the
excess portion be refunded to th e deal
er on a periodic basis. W e h eartily
concur w ith th is adea.
Dept. F-11, 5142 Delmar
St. Louis 8, Missouri
Business Created—A fter
form ation of th e in stallm en t d ep art
m ent, th e sm aller b an k w ill realize
alm ost im m ediately th e value of o th er
business th a t can be derived th ro u g h
th is channel. T here is h ard ly a bank
today th a t cannot point to m any suc
cess stories concerning some of its
largest depositors w ho first came
th ro u g h its doors via th e installm ent
credit account.
To sum m arize, an enlarged in stall
m en t lending p rogram can enhance
th e earnings of a bank, b u t it is not
a p ath free of risk or loss. A p ro
gram of th is sort w ill req u ire constant
and specialized supervision and th e
b an k th a t em phasizes autom obile deal
er financing w ill benefit by a close
liaison w ith a city correspondent
w hich specializes in th is field.—End.
i
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Federal Reserve Bank of St. Louis
N o rthw e ste rn Banker, M arch, 1962
48
Totla ff’s Profit IHi vin a
(C ontinued from page 23)
m y liking, b u t w h en ev er one group or
a quasi-m onopoly gets so stro n g th a t
it can squeeze th e public — producer
an d consum er—th e n it is tim e for the
go v ern m en t to act as u m p ire in th e
gam e to resto re th e equilib riu m of
fa ir com petition. The governm ent, in
m y judgm ent, should only do for th e
people w h a t th e people cannot do for
them selves.
A noth er m ain factor concerning th e
long-term outlook for cattle prices is
th e p re se n t u n bridled im p o rtatio n of
m eat.
T he cow and bull beef norm ally is
app ro x im ately 30 p er cent of th e
ra n c h e r’s to tal beef production. Twoth ird s of th is beef is used for h a m
b u rg e r and one-third for s a u s a g e ,
fra n k fu rte rs, bologna, and so fo rth —
th a t is, processed m eat. W hen prices
sta rte d to rise on th is ty p e of m eat in
1957, a flood of im p o rted beef suitable
a n d used for processed m eat en tered
th is country. As a result, in 1958, 8.4
p er cent of th e to tal beef (or beef th e
eq u iv ale n t of live im p o rted cattle)
cosum ed here w as im ported. In 1959
im p o rts w ere 8.3 p er cent and in 1960,
5.9 p er cent.
All th is w as im ported into a co u n try
supposedly plagued by a su rp lu s of
cattle, hogs, poultry, feed g rains and
so forth.
W ith th e trem endous production ca
pacity here it seem s asinine th a t our
ran ch ers, feeders and dairym en should
be forced to subm it to th e m ark et de
p ressin g com petition of th is cheap im
p orted m eat. As a re su lt of th is com
p etitio n th e ratio of slau g h ter cow
prices to all beef prices is low er th an
th e average for th e previous 10 years.
Today, cow prices are only 73 per cent
of p a rity w hile prices for all beef cat
tle are 85 per cent of parity.
L e t’s look a t our p resen t tariff pro
visions. In 1947 im port d u ty on beef
and veal, fresh chilled or frozen, w as
T H E AU TH OR,
C o u rte n a y C. D avis,
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W e s t e r n Life In su ra n c e C o m p a n y
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
reduced from 6 cents a pound to 3
cents a pound, although th e 6 cent
rate had been in effect since 1930. The
U nited States also reduced th e d u ty
on cattle w eighing less th a n 200
pounds from 2% cents to IV2 cents per
pound on th e first 200,000 head im
ported annually. Cattle betw een 200
pounds and 700 pounds rem ained at
2 V2 cents a pound, b u t th e tariff ra te
on cattle w eighing m ore th a n 700
pounds w as reduced from 3 cents per
pounds to IV2 cents p er pound for not
over 400,000 head en tered in a 12m onth period. Tariff w as reduced
from 3 cents a pound to 2 V2 cents a
pound for cattle en tered in excess of
th e foregoing lim itations. P reserv ed
m eats and o ther m eat n o t otherw ise
provided for w as reduced from 20 per
cent ad valorem to 10 per cent ad v a
lorem.
The in justice of th is and o th er re
ductions is ap p aren t w hen we look at
th e change in our econom y since 1930.
G eneral price levels have m ore th a n
doubled since 1930. Percentage-w ise,
the cut in tariff has been m ore th an
doubled. A ny talk s of th ese rates now
fu rn ish in g a ny p ro tection to th e A m er
ican producer show a lack of u n d e r
standing of our problem .
M any governm ent advisers and econ
om ists seem to feel th a t an an n u al de
preciation of th e cu rren cy of about 2
p er cent p er an n u m u n d er th e guise
of th e “grow th c u lt” is a desirable aim
for federal policy. In such an atm os
p h ere it is m y belief th a t producers
and feeders should insist on, and are
en titled to, a doubling of th e tariff
provisions in effect in 1930, nam ely a
raise from 6 cents p er pound to 12
cents p er pound, and so on dow n th e
line to preserv e a fair cattle price for
dom estic producers and finishers.
In addition, w e should ask th a t proc
essed m eat products, if m ade w ith im
ported m eats, should bear a stam p
readily visible to th e consum er: “Made
w ith im ported m eat f r o m ..........,” and
th e nam e of th e country.
My opinions m ay seem to be too
critical of certain m ethods and p rac
tices of th e packers and chain store
organizations. The o ther side of th e
coin is th a t we producers have nothing
b ut praise for th e m arvelous m an n er
in w hich th e packers and chains have
processed and m oved into consum p
tion the trem endous tonnage of m eat
ran ch ers and farm ers have produced.
Our en tire m eat team of producer,
finisher, packer and d istrib u to r is the
m arvel and envy of th e w orld.
In brief, let th e producer raise the
cattle, the feeder finish them , th e pack
er process them , th e chain store dis
trib u te th e product, and each confine
his activities to his own field.— End.
A
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F
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49
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Federal Reserve Bank of St. Louis
N o rth w e ste rn Banker, March, 1962
50
To Finance Sit nil buri/ (e n te r
H E C ontinental-Illinois N ational trib u te im p o rtan tly to th e physical
B ank and T ru st Com pany, Chi developm ent of Chicago.
cago, has announced th a t it has agreed The e n tire p roject w ill cover 15.63
to provide in terim con stru ctio n and acres in an area bounded by LaSalle
p erm an e n t financing up to $19,878,000 Street, C lark Street, D ivision Street,
u n d er th e F H A m ortgage in su ran ce
and N orth A venue. The Carl Sand
program for im m ediate con stru ctio n
b u rg Center, a unique blending of
of th e first tw o sections of Carl Sand high-rise apartm en ts, and tri-level and
b u rg C enter. D ovenm uehle, Inc. is a triu m tow nhouses, has been hailed
arran g in g th e m ortgage.
by civic p lan n ers as establishing a
David M. K e n n e d y , C ontinental m ajor new p a tte rn for redevelopm ent
board charim an, said th e p ro ject gives of u rb a n property. T otal cost is esti
th e b an k a n o th e r o p p o rtu n ity to con- m ated at $42,000,000.
Six high-rise ren tal ap a rtm e n t build
ings
and tw o m edium -rise cooperative
ON THE COVER
a p a rtm e n t stru ctu res, 72 tow nhouses
David M. K ennedy, board ch a ir
and 12 a rtis ts ’ studio a p artm en ts com
m an of C ontinental-Illinois N atio n
p rise th e to tal u n its in Carl Sandburg
al B ank and T ru st Com pany, Chi
C en ter’s overall plan. The C enter will
cago, exam ines scale m odel of Carl
have th re e m ajor clu sters of atriu m
Sandburg C enter a fte r announcing
(garden) tow nhouses and th ree groups
b ank is p rep ared to provide finan
of one dozen tri-level tow nhouses in
cing. E x p lain in g details are cen
each. T here w ill be 1,875 dw elling
te r’s sponsors, left to right: George
u n its in all, ran g in g from studio and
H. D ovenm uehle, chairm an, George
efficiency ap artm en ts to three-bed
H. D ovenm uehle, Inc., m ortgage
room u n its and four-bedroom townbankers; L ouis R. Solomon, p re si
houses. A p artm en ts w ill be both re n t
dent of L. R. Solomon-J. D. Cordal and cooperative, and tow nhouses
w ell and A ssociates, arch itects and
m ay be individually owned.
city plan n ers, and A rth u r Rubloff
In th e plan, each building is sited
ch airm an of A rth u r Rubloff and
to face aw ay from th e street, focus
Company, real estate brokers.
ing upon scenic view s of m alls, plazas
T
and co u rty ard s w hich w ill be lan d
scaped w ith trees, shrubs, fountains
and reflecting pools.
K
A
C om m erce Trust C onference
The 1962 conference for correspond
en t banks sponsored by the Commerce
T ru st Company, K ansas City, w ill be
held W ednesday,
A pril 4. The m eet
ing w ill head q u ar
te r at the Conti
n e n t a l a n d th e
M u e h le b a c h H o
tels.
G uest speakers
w ill include Neal
J. Dean of Booz,
A lle n & H am il
ton, on a u t o m a
tio n ; K r i s s W.
B arnes, executive vice president, Poudre V alley N ational Bank, F o rt Col
lins, Colo., on off-premises bookkeep
ing; Dr. Gordon W. McKinley, vice
presid en t and chief econom ist, F. W.
Dodge C orporation, New York, on th e
economic outlook; W. M. W illy, presi
dent, S ecurity B ank of M adison, S. D.,
on b an k accounting, and Dr. Charles
Kim ball, president, M idwest R esearch
In stitu te, Inc., K ansas City.
The m eeting is held by th e b an k for
its correspondents every tw o years.
Y
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t h a t m ig h t n o t b e p o ss ib le w i t h o u t t h e e x tr a s u p p o r t o f
F ie ld W a re h o u s in g .
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W e h a v e o t h e r b r o c h u re s t h a t e x p la in t h e m e th o d o f
fin a n c in g a d d itio n a l b u s in e s s t h r o u g h D O U G L A S G U A R D I A N ’S F ie ld W a re h o u s e R e c e ip ts .
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D o u g la s - G u a r d ia n
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WAREHOUSE CORPORATION
P. 0. Box 52978, New Orleans 50, La.
O U R
N o r t h w e s t e r n B a n k e r, M a r c h , 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
BRANCHES IN PRINCIPAL CITIES
I N T E G R I T Y
I S
Y O U R
Phone Area Code 504 523-5353
S E C U R I T Y
51
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W ELLS F A R G O B A N K
Formerly Wells Fargo Bank American Trust Company
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
mbsm
FOR D E T A IL S W RITE: W E LLS FARGO BAN K, 464 C A L IF O R N IA S T R E E T , SAN F R A N C IS C O 20, C A L IF O R N IA
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
52
7 th
F e d to A u t o m a t e
H A R L E S J. SCANLON, p resid en t processing and ro u tin g the 1,500,000
of th e F ed eral R eserve B ank of checks received daily from m em ber
Chicago, has announced th e b an k hasbanks. T ogether w ith R ay R. E ppert,
placed an order for a B u rro u g h s B270 p resid en t of B u rroughs Corporation,
electronic item processing system , suc Mr. Scanlon explained th a t the F ed
cessor to a pilot B301 system , to fu r eral R eserve B ank of Chicago’s plans
th e r autom ate th e h andling of checks to m ore fully autom ate check handling
processed for th e 2,900 b an k in g offices are proceeding at an orderly pace.
in th e S eventh F ed eral R eserve D is
“The key to successful autom ation
trict.
of our enorm ous check collection op
The anno u n cem en t follows an ex eratio n ,” Mr. Scanlon said, “is th e u n i
tensive evalu atio n of tech n iq u es by v ersal im plem entation of the m agnetic
th e Chicago b an k last y ear to d e te r ink c h a ra c ter recognition (MICR) sys
m ine th e feasib ilh y of electronically tem , or com m on m achine language,
established by th e A m erican B ankers
A ssociation in 1959. The ra te at
w hich au to m atin g th e handling of
checks can proceed depends, of course,
on th e continuing cooperation and
C
Satisfied Insureds and
Agents Agree--
ON THE COVER
re lia b le
SOM E
EXCELLEN T
NOW
AGENT
IN OUR
O P E N IN G S
IN
A nnouncing th e F ed eral R eserve
B ank of Chicago’s ordering of a
B u rro u g h s B270 E lectronic Item
P r o c e s s i n g System to process
checks for th e 2,900 b anking offices
in th e S eventh F ed eral R eserve Dis
tric t are C harles J. Scanlon, left,
b ank president, and R ay R. E ppert,
p resid en t of B urroughs C orpora
tion. The b an k is receiving B u r
ro u g h s’ first production system of
th e B270 in May, w hich replaces th e
B301 system show n in th e back
ground, a fo re ru n n e r of th e new,
m ore p ow erful B270. The Seventh
F ed eral R eserve D istrict com prises
Illinois, Indiana, Iowa, W isconsin
and M ichigan.
62nd YEAR
IO W A .
F' IRE
PROMPT EXTENDED
CLAIM COVERAGE
SERVICE! INLAND
\MARINE
HOMEOWNERS
AUTOMOBILE
adoption of MICR p re-p rin tin g by
banks.”
Briefly, th e system w orks like this:
batches of checks sent to th e F ederal
R eserve are first processed th ro u g h
th e check collection d ep artm en t w here
am ounts are encoded on each item in
m agnetic ink.
F ro m th is point on, all processing
is autom atic. The checks are placed
in th e hopper of th e electronic sorterread er and accelerated from a sta n d
ing s ta rt to 400 inches p er second in
a distance of ju st four inches. The
inform ation p rin ted in m agnetic ink
is “re a d ” by th e so rter and sent to
th e cen tral processor, w hich directs
listing of the item on th e six-tape
lister and determ ines w hich pocket of
th e so rter th e item should be sent to.
The en tire process of distributing, list
ing, adding and controlling item s
tak es place at speeds up to 25 checks
p er second.
Heads Travel Service
F irs t
N ational
City Bank, New
Y o r k , h a s a nnounced the app o i n t m e n t of
F re d A. S techer
as a vice p resi
dent.
M r. S t e c h e r
joined th e b a n k ’s
staff last m onth
and w ill su p e r
vise its tra v e le rs
c h e c k b u s in e s s
F . A. S T E C H E R
and tra v e l serv
ice. F o r th e p ast 14 y ears he has been
w ith th e A m erican E x p ress Company.
A
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HOME O FFICE CED AR RAPIDS, IO W A
J. E. Wilson, President
J. M. Winchell, Secretary
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Minneapolis
St. Paul
Oes Moines
M oline
53
Time to update
your microfilming?
S u re . . . your present m icro
filmer takes pictures “ good as
ever” even th o u g h you’ve had
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Look at a few of the ways the
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M icrofilm er can help:
I t cuts film costs . . . records
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o n a s in g le 1 0 0 - f t. r o ll of
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expose a twin roll sim ultaneously
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I f s fa s te r . . . autom atically
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lets you find any item in seconds
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I t ’s a lm o st like having two
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film unit) use the same R eliant
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C ontact your local R ecordak
R epresentative for details, or
write: R ecordak C orporation,
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— n o w in its 34th ye a r
IN C A N A D A contact
Recordak of Canada Ltd., Toronto
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
54
in s t a llm e n t C r e d i t . . (C ontinued from page 27)
m anpow er available to handle any in
creased activ ity in in sta llm e n t credit,
and to assu re itself th a t th e re w as in
fact a possibility for an increased
am ount of earn in g s w ith o u t a lopsided
increase in expenses to acquire such
volum e. T his analysis should also in
clude plans by w hich th e increased
activ ity can he obtained. It m ay be
th ro u g h increased ad vertising, it m ay
be th ro u g h g re a te r dealer activity, it
m ight even be th ro u g h a decrease in
rates, how ever, in th e la tte r area it
w ould seem as th o u g h th e ra te s ob
tainable for m ost typ es of desirable
in stallm en t credit have been reduced
by com petitive factors to rock bottom
and any decrease m ig h t defeat th e
v ery purpose w hich th e b an k is seek
ing to accom plish in increasing its in
stallm en t credit outstanding.
Auto Financing
Gone are th e good old days w hen
th e re seem ed to be one ra te of $6 p er
$100 add on or $6 p er $100 discount.
T his fact is p a rtic u la rly tru e in th e
area of autom obile financing, w h ere
com petition am ong b an k s has caused
th e estab lish m en t of ra te s th a t are p e r
ilously close in th e case of new car
rates to m aking it inadvisable for a
b an k to in vest any g reat am ount of
m oney in new car loans, since th e rate
of re tu rn is v ery little if any g reater
th a n th a t w hich can be obtained from
good com m ercial loans a grade or so
below the prim e rate class. C ertainly
th e re tu rn obtained from th e 4 per
cent or th e $4 per $100 add on rate is
n o t as g reat as can be obtained from
m any finance com pany lines w ith the
com pensating balance factor. T h ere
fore, I especially urge m anagem ent to
review th e rates it obtains from auto
m obile financing, keeping in m ind th a t
a $4 p er $100 add on, u n d er th e m ost
optim um conditions, gives a yield of
appro x im ately 7.3 p er cent. T his yield
is a gross yield and does n ot allow any
room for reserv e for losses or for the
ad m itted ly h igher expenses of obtain
ing and servicing autom obile loans.
F o rtu n a te ly for in stallm en t credit fi
n ancing of autom obiles in banks, th is
too low rate has not become th e p re
dom inant one in th e m idw est area;
how ever, it is a factor w hich is a larm
ing to m e as th e operator of a d e p a rt
m ent, b u t it is also alarm in g because
of w h a t it m ay do to th is type of bu si
ness in com m ercial banks. T here is
Reserve N o w f o r
National Installment Credit Conference
March 26-28, 1962
Chicago, Illinois
AT
EMM
M ic h ig a n A ve. a t 8 th S t. A cross fr o m C on rad H ilto n
C h ic a g o - WE 9-2800 —T W X -C G 82
• Closest motel to all
convention centers, com
mercial and shopping
areas, theatres,
museums, art centers,
and concert halls.
• Free motel parking,
in-and-out privileges.
• Heated
swimming pool.
• Free TV, radio, ice cubes,
wake-up coffee.
• Complete group meeting
facilities for up to
500 persons.
• 24-hour switchboard,
valet and room service.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
a
Y
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M E R MU
C THU AAL N T S
BONDING
COMPANY
I n c o rp o ra ted
2100
1933
H om e Office
GRAND A V E N U E
Des Moines, Iowa
T his is Iowa’s oldest surety company.
A progressive com pany with e xperi
enced, conservative m anagem ent.
We are p r o u d of o u r three h u n d r e d
bank agents in Iowa.
To be the exclusive representative of
tliis company is an asset to your hank.
•
A ll credit cards honored; member
o f A A A , Best Western M otels,
R e s e r v a t io n s Q u a l it y C o u r t s .
W r it e N o w fo r R e s e r v a t io n s ,
D e p t. 7 6 .
A ir p o r t lim o u s in e s stop a t o u r door.
Y O U R H E A D Q U A R T E R S F O R B U S IN E S S A N D P L E A S U R E
N o rth w e ste rn Banker, March, 1962
no valid economic reason w hy any
b ank should offer autom obile loans in
such a ridiculously low rate. T hey
are n ot doing a real service to th eir
custom ers and m ost certain ly are not
doing a service to th e ir stockholders
in em ploying th e ir funds to th e best
advantage. I m ake such a point of
th is ra te in th is article for a v e ry good
reason and th a t is to caution any managem ent w hich w ishes to increase its
earnings to offset th e increased cost of
in terest and savings servicing th a t
en terin g an autom obile loan program
a t an unreasonable ra te is not the
w ay to do it. The in stallm en t credit
d ep artm en t op erato r w ho recom m ends
such rates to its m anagem ent is not
m otivated by the best in te re sts of th e
b an k as a whole.
Personal Loans
F o rtu n a te ly in d eterm in in g w h eth er
to expand in stallm en t operations, we
are not bound by autom obile credit as
a m eans for expanding in stallm en t
credit. Over th e p ast y ears a w hole
host of new types of financing have
grow n up. T here are d ental plans,
th ere are boat plans, th ere are vaca
tion plans, th ere are education plans,
th ere are m any avenues available to
th e b an k w hich w ishes to increase its
in stallm en t credit activity. One of
those m ost freq u en tly overlooked is in
th e original area of in stallm en t loans,
E. H. WARNER
P r esid en t and M an ager
W. W. WARNER
V ice P r esid en t
M. J. CORBIN
S ecr eta ry -T re a su rer
K
55
55th Annual Financial Statement
Western Mutual Insurance Co.
616 10th STREET
-
DES MOINES, IOWA
ASSETS
For year ending
December 31, 1961
DIRECTORS
J. Dolliver Kent
Herman Jensen
Robert J. Kent
Harold B. West
Mont. S. Stokely
Albert H. Adams
Ronald C. Booth
J. Dolliver Kent, Jr.
Mark G. Thornburg
C a s h .................................................. $ 548,401.18
U. S. Bonds (amortized v alu e)........ 4,083,432.35
Municipal Bonds (amortized Value) 4,347,332.97
141,881.85
First Mortgage (none delinguent) ..
731,714.24
Due from Agents (current balances)
44,100.00
Building and Loan Shares ............
476,920.14
Real Estate Owned .........................
56,128.27
Due from Reinsurance Companies..
71,894.93
Accrued Interest on Investments ....
64,326.49
Cash Value of Life Insurance...... .
5.2%
38.7%
41.2%
1.3%
6.9%
.4%
4.5%
.5%
.7%
.6%
$10,566,132.42
100.0%
LIABILITIES
Current Bills ....................................$
22,383.57
Current Reinsurance Premiums .....
83,842.72
Taxes Accrued ................................
284,962.73
Unearned Premiums ....................... 3,944,903.37
Reserve for Unpaid Losses ............ 1,106,304.31
Equity in Schedule " P " ...................
98,507.00
Special Reserve ..............................
46,541.77
SURPLUS ......................................... 4,978,686.95
Best's Insurance Guide
gives Western Mutual
a general policyholders
rating of A + : AA
$10,566,132.42
Growing Since 1907 — Last 20 Years Comparison
Total Assets
December
December
December
December
December
31,
31,
31,
31,
31,
1941 ..............$ 515,609.73
1946 ............. 1,560,094.59
1951 ............. 4,923,397.07
1956 ............. 7,583,873.23
1961 ............. 10,566,132.42
Surplus
$ 151,500.99
525,830.34
1,851,218.41
3,544,539.62
4,978,686.95
"A Multiple Line Non-Assessable Company"
Writing through local agents under the American Agency Plan
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
56
THE STUDLEY, SHUPERT TRUST INVESTMENT COUNCIL
PROVIDES COMMUNITY BANK TRUST OFFICERS
WITH SERVICE AS PERSONAL AND INDIVIDUALIZED
AS YOU GET FROM YOUR FAMILY PHYSICIAN
It’s true! As a member of the Studley, Shupert Trust Investment Council,
you are an individual, a personality known by name to the Council Staff
. . . and the individuality, the trust objectives of each of your accounts
is equally well known.
Indeed, the relationship of Council Staff and Members becomes so in
timate and confidential that it actually is closely akin to your relationship
with your family physician. And, like your family physician, the Council
Staff is available to you at all times, whenever an account problem arises.
Unlike your family physician, however, the Staff is not composed of
general practitioners. Instead, it is a group of competent, experienced,
trust-minded specialists. And their research facilities for studying and
analyzing the complications of individual account problems from a trust
viewpoint are second to none.
Also, unlike your relationship with your physician, your Council
Membership is not just an aid in times of emergency. Again and again at
frequent intervals, month after month, the Council sends you its easy-tounderstand, up-to-the-minute trust investment guide material designed to
help you keep all of your accounts in good health.
We will be happy to tell you more about the advantages of Council
Membership without you being obligated. Write today to Dept. NW-DB.
S T U D L E Y , S H U P E R T T R U S T IN V EST M EN T C O U N C IL
1617 P E N N S Y L V A N IA B LV D ., P H IL A D E L P H IA 3, PA.
155 B E R K E L E Y S T R E E T , B O S T O N 16, M A SS.
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
th a t of th e personal loan to th e indi
vidual for the m u ltitude of p urchases
for w hich he needs such accom m oda
tion. It w as in th is area th a t A rth u r
J. M orris first began to th in k about
th e need for a loan arran g em en t for
th e m an on the street. A nd it is in
th is area th a t th e banks m ay still de
velop a considerable am ount of bu si
ness. V ery significantly a review of
th e latest F ed eral R eserve figures re
leased as of F e b ru a ry 1, 1962, and cov
erin g the period ended Decem ber,
1961, reveals th a t th e only area in
w hich th e com m ercial banks have not
exceeded o ther financing agencies is
in th e area of personal loans. Com
m ercial banks hold m ore autom obile
paper, m ore o th er consum er goods p a
per, m ore re p a ir and m odernization
loans th a n does any o th er one ty p e of
financing agency. H ow ever, in th e
am o u n t of personal loans outstanding,
o ther financial in stitu tio n s, and we
are p rim arily speaking of th e sm all
loan com panies and of th e credit u n
ions, have a considerable advantage
over com m ercial banks. Ju d g in g by
th e figures, th e y are w idening th a t
advantage day by day. So it w ould
seem th a t if th e b ank is in an area of
stable em ploym ent and reasonably
good economic conditions, it could
w ell explore th e possibilities of in
creasing its i n s t a l l m e n t business
th ro u g h a ttra c tin g m ore p e r s o n a l
loans. You w ill not find th e sam e
com petitive ra te factors p resent. It
w ill be possible for you to obtain a
rate th a t w ill give you a good profit
and by exercising reasonably good
credit ju d g m en t losses can be kep t at a
m inim um th a t w ill enable you to real
ize a fine re tu rn for yo u r m oney and
w ill help to bridge th e gap caused by
th e increased savings in te re st rates.
Trained Personnel
You m ay have gath ered by th is tim e
th a t I feel th a t it is generally in or
der for com m ercial banks to utilize
th e in stallm en t credit activ ity as a
m eans for increasing its income, and
I m ost certain ly do. H ow ever, I have
endeavored to p o int out some of th e
item s th a t m u st be considered in de
veloping such increased activity, not
th e last of w hich is th e m anpow er fac
tor. I t m ig h t be w ell to appraise the
experience and h isto ry and p erform
ance u n d er all conditions of th e peo
ple w ho are adm in isterin g th e in stall
m en t credit activity. Do th ey take
the lines of least resistance? A re th ey
inclined to let com petition influence
th e course of th e business? H ave th ey
established th e ir ability to handle in
stallm en t credit, w hen th e going is
rough? I t m ay be necessary for banks
to dip a little deeper into th e avail
able supply of custom ers for install-
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57
S p ry a t
ft 11!
T h ere w ere th r e e g e n e ra tio n s of
B im sons a t th e re c e n t a n n u a l s to c k
h o ld e rs’ m e e tin g of A riz o n a ’s s t a te
w id e V a lle y N a tio n a l B a n k . B u t fe w
p e rso n s re a liz e d i t u n til th e m e e tin g
cam e to a close a n d c h a irm a n o f th e
b o a rd W a lte r R. B im son, w ho w as
p re sid in g , in tro d u c e d a sm ilin g , l i t
tle , e ld e rly la d y in th e f r o n t row . I t
w as h is m o th e r, a re s id e n t o f B erth o u d , C olorado, who is v is itin g h e r
tw o sons— W a lte r a n d C arl. T he l a t
te r, in th e b a c k g ro u n d , w as e le v a te d
fro m p re s id e n t to c h a irm a n of th e
e x e c u tiv e c o m m itte e o f th e b o a rd
la te r in th e day. A lso in th e a u d i
ence w e re L lo y d a n d E a rl, W a lte r
B im so n ’s tw o sons. L lo y d is p re s i
d e n t of T he A riz o n a B a n k a n d E a rl
is vice p re s id e n t a n d c o n tro lle r o f
V a lle y B a n k . M rs. B im son, now “ 98
y e a rs y o u n g ,” w as 35 y e a rs old w h e n
V a lle y B a n k w a s fo u n d e d b a c k in
1899. T o d a y i t is th e la rg e s t b a n k
in th e e ig h t-s ta te R o ck y M o u n ta in
a re a she loves so m uch.
m en t credit. W e have gen erally tak en
th e cream w hich has accounted for
th e fact th a t b an k s gen erally show an
alm ost u n believably low loss ratio.
W e can afford to tak e som e increased
losses, n o t th a t I advocate an y g eneral
relax atio n of sound cred it standards.
If we approach th e w hole subject w ith
a clear know ledge of w h a t is involved
in increasin g our in sta llm e n t p o rtfo
lio, involved in th e m a tte r of th e in
creased expense of such developm ent,
th e increased hazard s in th e ev en t
th at it is necessary to low er cred it re
quirem en ts som ew hat, com pared w ith
th e increase in incom e th a t is likely
to re su lt from such bu sin ess b ro u g h t
w ith a p ro p er rate, I am su re th a t we
w ill find in sta llm e n t cred it w ill be a
m axim um m eans for assistin g in the
solution of th e problem created by the
am en d m en t to R egulation Q.—End.
New St. Paul D irector
B ert S. Cross, executive vice p re si
dent, G raphic P ro d u cts Group, M inne
sota M ining & M anu factu rin g Com
pany, w as elected to th e board of th e
St. P au l F ire and M arine In su ran ce
Com pany last m onth.
The distinctive two-tone appearance of
safety paper has long been associated
with bank checks.
Produced by a unique process cre
ated solely for the purpose of making
a protective paper for bank checks,
safety paper is used by a majority of
banks, large and small, throughout
the country.
For ch e ck s that have custom er a c
ce p ta n c e sp e cify L a Monte Safety
Paper.
TH E
W A V Y L IN E S , ®
TH E N A M ES
BASKETW EAVE ®
S A F E T Y
AND EXCH ANG E ®
A N D THE
D IS T IN C T IV E
F O R
B A S K E T W E A V E L IN E S
P A P E R
■'I Ij
C H E C K S
A RE
LA M O N TE TR A D E -M A R K S.
GEORGE L A MO N T E
& SON
•
NUTLEY
10,
NEW J E R S E Y
No rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
58
M e r c a n t ile
C
N E W LOOK— M e rc a n tile T ru s t C om pany, S t. L ouis, has ju s t
c o m p le te d a $1,250,000 re m o d e lin g . F o llo w in g c o m p letio n o f th e
T ru s t D e p a rtm e n t im p ro v e m e n ts on th e t h ir d floor of th e b a n k
la s t y e a r, w o rk w as b e g u n on th e E x e c u tiv e , C om m ercial B a n k
in g , a n d D isc o u n t D e p a rtm e n ts lo c a te d on th e second floor of
Heads Investm ent D ivision
F ra n k lin Stockbridge, vice p re si
dent, S ecu rity F irs t N ational Bank,
Los Angeles, has been nam ed m anager
of th e b an k in v estm en ts and bond de
p artm en t. He succeeds F re d e ric k G.
L arkin, Jr., w ho w as elected p resid en t
of the b an k last N ovem ber.
He joined S ecurity in 1947 and for
th e first te n y ears co n cen trated his
atte n tio n on th e b a n k ’s m unicipal
o
m
p
l e
t e
s 3iilliH o l Al a
th e m a in b a n k b u ild in g . T h a t w o rk h a s now b e e n
E v e ry th in g is n ew fro m c a rp e ts to c h a n d e lie rs, a n d th e
lo o k ” a t M e rc a n tile now m a tc h e s th e b a n k ’s m o d ern ,
lo o k in g a ttitu d e . I n a d d itio n to n ew offices, M e rc a n tile
a. n ew b o a rd room a n d d ire c to rs ’ lounge.
bond activities. In recen t y ears his
resp onsibilities w ere extended to the
in v estm en t portfolio as well. He be
cam e an a ssistan t vice presid en t in
1950 and vice presid en t in 1956.
A m erican E xpress Elects
The ap p o in tm en t of tw o new assist
a n t vice presid en ts by th e board of
directors, A m erican E xpress, has been
finished.
“ m o d ern
fo rw a rd now has
announced by P resid en t H ow ard L.
C lark in New York.
T hey are Brooks B anker and W il
liam P. K. Pow ers. Mr. B an ker joined
A m erican E x p ress in 1960 and has
been on th e staff of th e com pany’s
T ravelers Cheque Division. Mr. Pow
ers, w ho joined th e com pany in 1959,
has been serving as a ju n io r loan offi
cer in th e O verseas B anking D epart
m ent.
Y
Tl
F IN A N C IA
L STATEM EN T
DECEMBER 31, 1961
ADMITTED
ASSETS
L IA B ILIT IE S
AND
SURPLUSES
Bonds: (Amortized) ..................................... $10, 016,497.84
Government ...........$ 4,850,810.98
State, County
and Municipal .... 3,647,874.00
Miscellaneous ____ 1,517,812.86
Stocks: (Market—N.A.I.C.) .........................
279,620.00
Preferred ...............$
65,000.00
Common .................
214,620.00
Mortgage Loans—On Real Estate ................
180,969.49
Real Estate—Including Home Office Building
943,132.66
Cash and Bank Deposits .................................
891,170.40
Agents Balances or Uncollected Premiums..
990,189.86
Interest Due and Accrued .............................
84,164.21
Reinsurance Recoverable on Loss Payments
496,380.85
All Other ............................................................
11,930.02
Reserves for:
Losses and Loss Expense ....................... $ 1,016,019.57
Contingent Commissions ...........
537,647.43
Taxes: ..........................................................
324,260.36
Federal Income .............. $107,577.41
State and Local ______ 216,682.95
Unearned Premiums ............................... 1,936,937.38
Funds Held Under Reinsurance
Treaties ...................................................
237,419.45
Reinsurance Loss Balances in Course
of Payment ........................................
511,372.78
All Other ....................................................
102,948.64
TOTAL ............................................... $13,894,055.33
TOTAL ............................................... $13,894,055.33
MAX D. RUTLEDGE, President
TOTAL LIABILITIES
Surplus as Regards Policyholders
F. O. RUTLEDGE, Secretary
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
9 ,2 2 7 .4 4 9 .7 2
A. L. WAGNER, Treasurer
Home Office 2323 Grand Avenuev Des Moines, Iowa
N o rth w e ste rn Banker, March, 1962
4,666,605.61
59
- R E G A R D I N G THE P R O F IT -M A K IN G OPPORTUNITIES
OFFERED BY OUR
BANKERS PARTICIPATION PLAN!
“National Reserve Life now operates in over
one-half of the states of the Nation and ranks in
the upper one-fourth size bracket of all American
insurance companies.
For over four decades, increasing numbers of
Bankers have enjoyed the substantial profits avail
able through affiliation with our tested BANKERS
PARTICIPATIO N PLAN.
Our continuing development program, in addi
tion to the expanded facilities provided by our new
Topeka Regional Office, enable us to offer you a
most attractive profit-making opportunity.
Enduring As Rush more
I invite you to write me personally for com
plete information regarding our BANKERS PAR
TIC IPA TIO N PLAN!”
H.
O. CHAPMAN
President
S. H. W IT M E R
Topeka
•
Sioux Falls
Chairm an of the Board
N o rthw estern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
60
«fluì A” X K A W L F K .S C H F O n - I
423 456
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S A N F H A N C IS C * C , C AJLI F'
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what else is new?
N o rth w e ste rn Banket, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
61
N O T H IN G IS N E W E R in banking today than
B ank of A m e ric a ’s new A B A coded electro n ic
T rav e lers C heques—all in p re-packaged fo rm .
They’re the world’s f ir s t! Because they’re so new,
and because they offer you so many advantages, we
have anticipated some of the questions you might
wish to ask about th e m ...
Sign-out has been a problem, too. Our new form
is shipped rig h t w ith the cheques and serves as
your log. The custodians need only verify the ship
ment, sign and file the form. When cheques are
needed from the vault, the last few digits of the
last cheque from each series are recorded, and the
entry is dated and signed.
Q : What does “ pre-packaged” mean?
Q : What portion of the commission do we retain on Bank of
America Travelers Cheque sales?
A: A ctually, you’ve alw ay s h ad p re-p ack a g ed
cheques—ten cheques to a package for each denomi
nation. B ut now we’ve attached a completed ap
plication form to the cheques, instead of a useless
cover.
Q : We’ve heard that some banks have to maintain two inventor
ies of cheques-one for package sales and one for loose sales. Is
this necessary with Bank of America Travelers Cheques?
A: N o—one inventory does the whole job. This is a
big advantage regardless of the size of your bank.
Q : You have seven packages. Does our bank have to inventory
each one?
A: N o—and this is im portant. You stock only the
packages you want. However, we do suggest th a t
you take all seven packages on a trial basis. Our
computer program will replenish only those you
sell, and if you decide to close out a particular
package all you have to do is let us know.
Q : How can we be sure that your computer system can keep our
bank adequately supplied with cheques?
A: Our computers see to it th a t your bank has a t
least a three-m onth supply of cheques on hand
a t all times. As sales applications are processed,
each type of package is examined. If any type is
low, all others also will be replenished, if needed.
Q : What’s the advantage of this “ electronic replenishment” ?
A: There are several advantages. F or one thing,
you no longer have to anticipate your needs or
requisition cheques. You receive a minimum num
ber of shipments; your inventory is lower, yet you
never need to fear running out of cheques; fewer
cheques on hand speed up your audits. In short, you
save valuable time, money and space.
Q : How long does it take the computer to determine our usage
of each package?
A: 90 per cent.
Q : We’re interested in the pre-packaged feature, but we under
stand you’ve made other improvements, too. Is this so?
A: Yes, w e’ve u p -g rad ed ou r w hole p ro d u c t in
m any w ays:
1. The new cheque will make clearings by other
banks—as well as our own computer process
in g -m o re efficient.
2. The new packaged applications will speed up
your sales, as well as improve our ability to
serve you.
3. Your customers will enjoy even faster claims
service because of the computer operation.
4. Customers like our new, attractive wallets.
5. You’ll be working with glue-bound applica
tions and cheques rath e r than cumbersome
staples.
6. C arbonless ap p lic a tio n fo rm s w ill mean,
cleaner, faster handling.
7. A new teller’s “Sales R egister” will speed
sales recording.
8. A new seller’s kit has been designed specifi
cally for bank use.
Consider the advantages outlined above. Rem em
ber, too, that our cheques are known and accepted
—and effectively advertised—all around the world.
Then you’ll know w hy we believe that Bank of
Am erica offers your bank and your customers the
best possible travelers cheque service. A n y more
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BANK OF AMERICA TRAVELERS CHEQUES
NATIONAL TRUST AND SAVINGS ASSOCIATION • MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
62
Correspondent bankers John Ordos, Doug Johnson and Wally Engstrom start on a business trip.
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T H E BANK W . i H T H E BIG W EL C O M E
idland National Bank
FEderal 2-0511 • Second Ave. So. and Fourth St. » Minneapolis 40, Minn. • Member FDIC
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
63
vice president; A u d r e y Ronhovde,
cashier, and Mrs. M argaret Carlsen, as
sista n t cashier.
M in n eso ta
Baudette
NEW S
P. R. K E N E FIC K
K. A . W A LE S
President
Se cretary
Mankato
Minneapolis
New C om m issioner
G erald L. B ryan, first vice president,
State B ank of A noka, Minn., has been
appointed com m issioner of b an k s for
M innesota by G overnor E lm e r L. A nd
erson. Mr. B ryan
assum ed his new
office F e b ru a ry 6,
s u c c e e d in g A r
t h u r W. S a n d s
w ho resigned to
re tu rn to active
m a n a g e m e n t of
th e W estern State
B ank, St. Paul.
Mr. B ryan, 42,
w as b o rn in Coon
G. L . B R Y A N
R a p i d s and has
been w ith th e State B ank of A noka
since 1937. H e in te rru p te d his service
w ith th e b a n k to serve in W orld W ar
II. S ta rtin g as a p riv ate in 1951, he
w as discharged as a cap tain in 1947.
H e w as recalled to active d u ty d u rin g
th e K orean w ar and served a t Camp
R ucker, Ala., an d F o rt Sill, Okla., re
tu rn in g to th e b an k in 1951.
He w as elected cash ier in 1949 and
has been vice p resid en t since 1956. He
has resig n ed as vice p re sid e n t to ac
cept th e com m issioner’s post, b u t will
rem ain as a director. Mr. B ry an w ill
serve out th e rem ain in g five y ears and
six m o n th s of Mr. S ands’ re g u la r sixy ear term .
A noka
A lvin Lenz, an em ployee of th e F irs t
N ational B ank for seven years, has
been prom oted to vice president. R ich
ard H. Nelson, also w ith th e b a n k for
seven years, has been prom oted from
assista n t cashier to a ssista n t vice p re s
ident, and G ary Schake, w ith th e b ank
for th re e years, w as prom oted to as
sista n t cashier, along w ith R obert G.
P eterso n w ho joined th e b an k in 1958.
A ppleton
R oger K. S tehn w as elected a ssistan t
cashier a t th e a n n u al m eetin g of th e
F a rm e rs & M erchants S tate Bank. All
o th er officers and d irecto rs w ere re
elected.
Atwater
A. O. S trom seth, w ho recen tly com
pleted 42 y e a rs in banking, has a n
nounced his re tire m e n t and has sold
his in te re st in th e A tw ater State B ank
to T hom as and R u th Danielson.
T hom as D anielson, c u rre n tly cash
ier, w ill assum e th e presidency of the
b a n k an d R u th D anielson, cu rren tly
a ssista n t vice president, w ill become
vice p resid en t and cashier.
Mr. S trom seth continued w ith the
b an k u n til M arch. He and his wife
have p u rchased a hom e in N orthfield,
Minn.
W. R. W estrom , form erly w ith th e
F irs t N ational B ank of Elbow Lake,
has joined the F irs t N ational B ank of
B audette as a ssistan t cashier. He suc
ceeds Rubelle H anson w ho recently
announced his resig n atio n after 15
y ears w ith th e bank.
It also w as announced th a t th e b ank
has increased its su rp lu s account by
$20 ,000 .
B elle Plaine
R.
J. E ffertz has been prom oted to
vice presid en t and K evin G. Gaffney
w as prom oted to cashier at the State
B ank of Belle Plaine.
B lue Earth
Jo h n F ru n d t, an attorney, has been
nam ed to replace Dr. W. C. C ham bers
Babbitt
as a d irector of th e Blue E a rth State
R.
J. Slade has been added to the Bank. Dr. C ham bers recen tly com
board of directors of th e F irs t State pleted 31 y ears as a director and has
B ank, re p o rts J. W. Schmid, vice p re si been nam ed “director em eritu s” in
d e n t and cashier.
recognition of his long service.
Balaton
Blooming; Prairie
Don Fogelson w as prom oted from
a ssista n t cashier to cashier a t the
F a rm e rs and M erchants S tate Bank.
V. G. Schaffer now is vice president,
instead of vice presid en t and cashier.
F. A. Tim m w as re-elected president.
N orm an R. Peterson, son of Board
C hairm an R. A. P eterson, w as elected
a director of th e F irs t N ational B ank
at th e an n u al m eeting, replacing R ay
H erro n w ho died last Decem ber.
O ther directors and all officers w ere
re-elected.
B aruesville
J.
Ju lia n Aam odt, 66, died the day
a fte r his re-election as a vice p resident
and d irector of th e F irs t N ational
Bank. He had been a d irector since
1931 and vice p resid en t since 1954. He
m entioned th a t he had not m issed a
m eeting of th e stockholders since his
election to th e board u n til th e one ju st
p rio r to his death, rep o rts George H.
Felde, cashier.
Barnum
H an s Carl H anson, founder of the
S tate B ank of B arnum , nationally
know n G uernsey breed er and form er
M innesota state senator, died recently
a t th e P ine C ounty M emorial H ospital
in Sandstone, afte r a brief illness.
Mr. H anson w as p resid en t of the
b an k u n til his re tire m e n t in 1957 after
54 y e a rs of service. He sold the b ank
to W alter N ew m an and E dw in M anni
in 1960.
B uffalo
Buffalo National
B ernice H olthaus, Leona H olthaus
an d Floyd L indberg w ere nam ed as
sista n t cashiers at th e an n u al m eeting.
All o th er officers w ere re-elected.
Oakley National
H arold M. Tem plin has been elected
presid en t and H arold F. Dickson has
been elected cashier. T hey w ere cash
ier and a ssistan t cashier, respectively.
Mr. Tem plin has been w ith th e bank
since 1922 and Mr. Dickson joined the
b ank in 1940.
Calum et
The follow ing officers w ere elected
at th e ann u al m eeting of the Calum et
State Bank:
W. C. Holt, president; W illiam Holt,
Jr., vice president; J. V. Koler, vice
p resid en t and cashier, and E. W. Holt,
a ssistan t cashier.
Barrett
Cam bridge
The follow ing officers w ere elected
a t th e an n u al m eeting of th e Citizens
S tate Bank:
O. R. Olson, president; P. J. Score,
G ordon E. Bostrom of Isa n ti has
been elected a ssistan t cashier at the
Peoples State Bank, it w as announced
by Jo h n G underson, president.
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
64
M in n e so ta
New s
recto rs a t th e an n u al m eeting.
Pioneer National
H.
J. M cClintick re tire d recen tly as
G etchell W iddes, president, W iddes
presid en t of th e F a rm e rs State B ank
G rain and Feed Company, Esko, w as
of Cedar. He and his w ife are re tirin g
elected to th e board of directors fol
after 42 y ears of service in banking.
low ing th e resig n atio n of T hom as G.
Bell, Jr., and R obert K reilder.
C larkfield
Donald R. N elson has been added to
E xcelsior
th e board of directors at th e F a rm e rs
C apital stock of the M innetonka State
& M erchants S tate B ank, increasing
B ank has been increased from $150,000
its size to six m em bers.
to $175,000, and su rp lu s w as increased
It also w as voted to increase th e
su rp lu s account from $75,000 to $100,- from $110,000 to $160,000. The in
creases w ere carried out th ro u g h the
000 .
sale of additional stock.
Cedar
Cloquet
K enneth P. Johnson, Cloquet realtor,
has been added to th e board of direc
to rs of th e F irs t N ational Bank. Jo h n
M. G annon w as prom oted to au d ito r
and Doris E. P h ip p s w as nam ed ad
m in istra tiv e assistant.
O ther officers and d irecto rs w ere re
elected.
Crookston
Clifford H. Zaffka, cashier, w as p ro
m oted to vice presid en t, and W. L.
Ericson, a ssista n t cashier, w as ad
vanced to cashier. Mr. Zaffka has been
w ith th e b an k since 1958 and Mr. E ric
son joined th e staff in 1949. B efore
joining th e C rookston bank, Mr. Zaffka
w as cashier of th e N o rth e rn State
B ank in T hief R iver Falls.
Crosby
Granite Falls
A. F. Siew ert has p u rchased con
tro llin g in te re st in th e Yellow Medicine C ounty B ank here and has tak en
over th e duties of presiden t. He has
been vice p resid en t of th e bank.
Farm ington
L eonard C. N ovitski w as prom oted
from a ssistan t cashier to a ssistan t vice
p resid en t in charge of th e insurance
d e p a rtm e n t of th e F irs t N ational
Bank. He succeeds R. G. Shirley, vice
p resident, now re tire d from full activ
ity. Mr. Shirley is continuing as a
part-tim e co n su ltan t in th e insurance
departm en t.
Fairm ont
D etroit Lakes
F oley
V ernon D aggett, presid en t, D aggett
T ruck Lines, Inc., of F razee, Minn.,
w as elected to th e board of directors a t
th e an n u al m eeting of th e F irs t N a
tional Bank. H e replaces A. T. T hom p
son w ho died last y e a r a fte r serv in g on
th e board since organization of th e
bank.
Jo h n E. P a re n t has sold his in te re st
in th e S tate B ank of Foley to Jo h n
W estra of St. Cloud, and Neil Jo hnson
of D arw in.
Mr. Jo h n so n w ill becom e p resid en t
and Mr. W estra w ill be executive vice
president. All o ther office holders w ill
be retained. Mr. W estra plans to move
to F oley and Mr. Joh n so n w ill con
tin u e to m ake his hom e in D arw in.
T he selling of his in te re st in th e
b an k ends 50 y ears of association w ith
th e firm for Mr. P aren t, w ho is re
tiring.
D ulu th
Northwestern Bank of Commerce
M arshal Reining, presid en t, Ojibway
P ress, w as elected to th e board of di
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The Clinton State B ank is serving
its custom ers in tem p o rary q u a rte rs
w hile th e b an k building is undergoing
en larg em en t and extensive rem odel
ing. A ccording to Sevrin Steen, cash
ier, th e rem odeling is to be com pleted
som etim e th is m onth.
An addition is being co n stru cted at
the re a r of th e b an k building and the
in te rio r is being rearran g ed and re
modeled.
R ichard C arlander, form erly assist
a n t cashier, w as nam ed a ssistan t vice
p resid en t at th e an n u al m eeting of The
State B an k and w as elected to th e
board of directors. All o th er officers
and directors w ere re-elected. R ay
M eyer, vice president, announced his
re tire m e n t a t th e end of th e year.
New d irectors of th e F irs t N ational
B ank are R obert E. N e ls o n and
M ichael G. G erry. T hey succeed E d
Duffey and W illiam Sim pson, w ho are
retirin g .
O ther d irectors and all officers w ere
re-elected.
Jo h n E. M anthey, Sam M asinter and
A rth u r I. N aslund have re tire d from
th e board of th e F irs t N ational Bank.
Leo M. Gilson, ow ner of th e Gilson
D rug Com pany in E veleth, w as elected
to th e board a t th e a n n u al m eeting.
All officers w ere re-elected.
G raceville
Faribault
L a rry P a te r and Alyce M. P erp ich
have been nam ed a ssista n t cashiers at
th e F irs t N ational Bank.
All o th er officers and directors w ere
re-elected at th e a n n u al m eeting and
th e su rp lu s account w as increased by
$25,000, b rin g in g capital and su rp lu s to
a to tal of $250,000.
E veleth
derson and JoA nne Lee, a ssistan t cash
iers.
4
^
V
\
Hastings
L eonard B auer and F ra n k Cahill
have been elected d irectors of th e
N o rth w estern N ational Bank. Both are
lifelong resid en ts of H astings, now in
th e construction business.
All officers w ere re-elected.
v
H ayfield
Y
P aul A rendts has been nam ed vice
p resid en t and cashier and D onna C.
H aukum w as nam ed assista n t cashier
a t th e an n u al m eeting. Mr. A ren d ts
also w as elected a director. Carl Finseth rem ains as president.
y
H ibbing
First National
P lans for an expansion and rem od
eling p rogram have been announced
and tw o new directors have been
nam ed.
New d irecto rs are Dr. L u verne W.
Jo h n sru d and R ussell J. Ryan. Dr.
Jo h n sru d is a surgeon and senior
m em ber of th e M esaba Clinic in H ib
bing. Mr. R yan is a p a rtn e r in th e
R yan C onstruction Com pany and th e
R yan R ealty Company.
The rem odeling program w ill in
clude th e addition of drive-in facilities
and a tim e-pay d ep artm ent, according
to C. E. Taylor, president.
Security State
F re d L in d q u ist and C harles E. Walte rs have been elected a ssistan t cash
iers. All o ther officers w ere re-elected.
A
r
*
^
H opkins
Gary
The follow ing officers w ere elected
a t th e a n n u al m eeting of th e G ary
S tate Bank:
A. A. H abedank, president; L. J.
P eterson, vice president; Gordon L.
Nelson, cashier, and Mrs. M arilyn G un
S.
H. Severson, w ho sta rte d his
ban k in g career w ith th e F irs t N ation
al B ank here 37 y ears ago, has been
elected president, succeeding Otto G.
C erm ak w ho becom es ch airm an of th e
Y
board afte r 39 y ears in th e bank. A nd
rew N. Ju stu s, president, J u stu s Lum-
Minnesota N e w s
w ill continue on th e board.
A lex J. H erlick w as prom oted to
cashier from a ssistan t cashier.
Lake Crystal
R ich ard Lunde, a ssistan t cashier and
b an k em ployee for 27 years, has been
added to th e board of th e Lake C rystal
B ank. O ther board m em bers w ere re
elected.
S. H . S E V E R S O N
O. G. C E R M A K
b er Com pany, succeeds Mr. Severson
as vice president.
O ther officers and d irecto rs w ere re
elected.
H ow ard Lake
F loyd B. M unson has been elected
to replace th e late A ugust F. R eiter as
d irecto r of th e S ecurity State Bank.
Mr. R eiter died d u rin g 1961.
O m ar E. G lessing w as prom oted
from cashier to executive vice p re si
d en t and V erna R. G lessing w as p ro
m oted from a ssista n t cashier to cash
ier. O ther officers w ere re-elected.
Isanti
J. B. H ove has been elected as a new
directo r of th e F irs t State B ank. Hilding A. E rickson, Carl K ru eg er and
Jam es Hove w ere re-elected.
Le C enter
Chas. I. T rax ler has been added to
th e board of th e F irs t N ational Bank.
All o th er directors w ere re-elected.
Le S eu er
J o h n Pow ers w as elected a director
of th e V alley State B ank at th e an n u al
m eeting. O ther directors w ere re
elected.
The follow ing officers w ere elected:
L. E. F elton, chairm an; H. F. C ham
berlain, president; H a rry J. G rant, vice
president; H. P. M eyer, cashier, and
Alice F reeberg, a ssistan t cashier.
A rnie Osm undson, assista n t cashier,
is leaving th e b ank to join his fatherin-law in business in Illinois.
Special acknow ledgm ent w as given
a t th e an n u al m eeting to H a rry G rant
on his 26 y ears of continuous service.
He is going into p artial retirem en t.
65
L ittle F alls
G lenn G. Howes, executive vice p re s
ident, has been nam ed p resid en t of th e
A m erican N ational Bank, succeeding
F r a n k L. H a r t
m ann w ho has re
tired. Mr. Howes
joined th e ban k
in 1960, c o m in g
from Faix’m ont.
Dale Thom pson,
auditor, w as p ro
m oted to a ssistan t
cashier. H e has
b e e n w ith th e
b an k since 1956.
G. G. H O W E S
O t h e r officers
and directors w ere re-elected.
Mr. H a rtm a n n ’s re tire m e n t w as re
ported in th e N orthw estern B anker
last m onth.
L on g L ake
K enneth Bollum, president, th e State
B ank of Long Lake, rep o rted th a t th e
su rp lu s account of th e b an k has been
increased by $20,000, b rin g in g th e to tal
to $120,000. C apital is $50,000.
Lu V ern e
First National
H. L. Sm ith, president, rep o rts the
election of D ennis D. A nderson, for-
J a n e sv ille
Joseph M. F in ley has been appointed
vice p resid en t and d irecto r of th e
Jan esv ille S tate B ank. He succeeds E.
G. Z im m erm an w ho has served as n o n
active vice p resid en t and d irecto r since
1943 and w ho rem ain s an h o n o rary
director. Mr. F in le y w as an a ssista n t
cashier.
L. W. Scott also has announced his
re tire m e n t from th e board of directors.
H e is replaced by his son, L. W. Scott,
Jr.
K arlstad
O perations of th e K arlstad State
B ank w ere m oved to new q u a rte rs
across th e stre e t recently. G rand open
ing dates have n o t been announced.
For Your
Wéjj
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>
Patent, Copyright
and Trademark...
r e g u la tio n s a re o u tlin e d in "Y o u r Guide to B usi
ness in C anada,” j u s t p u b lis h e d a s a se rv ic e to
A m e ric a n e x e c u tiv e s b y C a n a d a ’s F i r s t B a n k ,
M a n y o th e r e s s e n tia l s u b je c ts, in c lu d in g C a n a d ia n
t a x e s a n d c o m p a n y fo rm a tio n , a r e d isc u sse d .
T h is b o o k le t is o n e o f a n u m b e r o f B o f M p u b li
c a tio n s w h ic h m a y h e lp y o u r e n d e r b r o a d e r s e r
vice to y o u r C a n a d ia n -m in d e d c u s to m e rs . F o r a
fre e co p y w rite o n y o u r b a n k le t t e r h e a d to o u r
n e a r e s t U. S. office o r to th e B u s in e s s D e v elo p
m e n t D e p a rtm e n t, H e a d Office, M o n tre a l.
K im b a ll
A lton E. G reeley and L u v ern E.
H inz have been elected to th e board
of th e S tate B ank of K im ball. T hey
w ill serve w ith re-elected board m em
bers F lorence R. Douglass, E lm er Eckm an, E. A. E rickson, E. E. E rick so n
and E. C. F ren ch .
TO Z M illion CAmUMS
np
K lo ssn e r
>
/V s
y
é
yk' /y
i\
V ictor J. Sondag, executive vice
p resid e n t and cashier, has been elected
p resid e n t of th e K lossner S tate Bank,
succeeding F. H. K rook, p resid en t
since 1926, w ho is retirin g . Mr. K rook
✓
CANADIAN
B a n k
(? a « a d a à
o f
M o n treal
‘S c u t â
to - (? o a d t
B R A N C H E S IN A L L T E N P R O V IN C E S
District H e a d q ua rte rs :
Halifax, Toronto, Winnipeg, Calgary, Vancouver
N E W Y O R K :T w o W a ll S t.
•
S A N F R A N C IS C O : 3 3 3 C a lif o r n ia St
C H I C A G O : S p e c ia l R e p re s e n ta tiv e 's O ffice , 141 W e st Ja c k s o n B lv d
r
'yfyead ó fó tc e ; 'Wincit'ieai
850 BRANCHES IN CANADA, U.S., GREAT BRITAIN AND EUROPE
RESOURCES EXCEED $3,300,000,000
No rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
66
M in n e s o t a N e w s
O w atonna
W is e
O te T s
P o in t o f
V ie te
■ T he W isen ess of b a n k in g a t th e F i r s t
A m e ric a n N a tio n a l B a n k of D u lu th , M inn.,
w as v iv id ly p o in te d o u t re c e n tly w h e n a
w ise old ow l chose th e b a n k ’s o u td o o r clock
as its p e rch . T he owl fo u n d th is sp o t so
c o m fo rta b le t h a t he sta y e d fro m noon u n til
e a rly e v en in g . M a n y a com m ent w as h e a rd
in th e b a n k c o n c e rn in g th e ow l’s se le c tio n of
th e F i r s t A m e ric a n as h is b a n k . P eople
sto p p e d a n d loo k ed a n d p o in te d .
O th e rs
w ould ju s t sh a k e th e ir h e ad s in d isb e lie f.
T he F i r s t A m e ric a n ’s la te s t c u sto m e r w as
tr u ly a cro w d sto p p e r.
m erly a ssista n t cashier as cashier. Delv in M eyer w as nam ed a ssista n t cash
ier and in su ran ce d e p a rtm e n t m a n
ager.
Rock County Bank
D irectors voted to increase th e s u r
plus $25,000 to $150,000 at th e an n u al
m eeting.
M ankato
R ichard B. Jude, elected executive
vice presid en t a y e a r ago, has been
nam ed to succeed H a rry M. G ran t as
p resid en t of th e F irs t N ational Bank.
Mr. G ran t is re tirin g a fte r n e a rly a
half cen tu ry in banking.
Succeeding Mr. Ju d e as executive
vice p resid en t w ill be B. W. Kough,
w ho began his b an k in g career in A us
tin in 1922. He w as serving as vice
p resid en t and cashier.
R obert H. C urrier, w ho has been
serving as a ssista n t vice president,
w as elected to succeed Mr. K ough as
vice president.
All o th er officers w ere re-elected.
M ap leton
R, C. King, p ro p rie to r of Bob’s
F a rm e rs Store, has been added to th e
board of th e F irs t N ational B ank. All
o ther directo rs w ere re-elected.
M in n eota
W allace R. Pesch h as been p ro
m oted from a ssista n t cashier to cash
ie r and B erto n A m undson and David
D. L am phere w ere nam ed assista n t
cashiers at th e F irs t State Bank. H a r
ris J. Sorensen, president, also re
ported th a t L. V. W id m ark has re
signed from th e board of d irectors
after 20 y ears of service. He is suc
ceeded by R obert Geiwitz.
M oorh ead
American State Bank
R. S. Sullivan, a ssista n t cashier, w as
nam ed m an ag er of th e in stallm en t
loan d e p a rtm e n t to succeed L oren
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Sm ith, a ssistan t vice president, w ho
resigned to e n te r an o th er business.
First National
N orm an W. K rabbenhoft, a farm er
in Clay County, w as elected a direc
tor. R aym ond S harkey w as elected
a ssista n t vice president. A. M. Sever
son w as prom oted from a ssistan t cash
ier to a ssistan t vice presid en t and
continues as a g ricu ltu ral re p re se n ta
tive. P au l T. Tellefson, w ho joined
th e staff in 1960, w as elected auditor,
and Lloyd A. Odin, w ho has been in
th e in sta llm en t loan departm ent, w as
elected a ssistan t cashier.
M organ
A m anda K raus and Mrs. M orris
K u h n w ere added to th e board of the
S tate B ank at M organ a t th e annual
m eeting.
M. L. K u h n w as prom oted to execu
tive vice p resid en t from cashier and
Don Lange, a ssistan t cashier, moved
up to cashier. Mrs. Otto R eitter and
E lfriede Zamzow w ere elected assist
a n t cashiers.
M orris
M erle F elstul, cashier, has been pro
m oted to vice p resid en t of th e M orris
State B ank. C onrad N. F reem an, as
sista n t cashier, has been prom oted to
cash ier and has been added to the
board of directors.
N ew U lm
Dr. P e te r J. K itzberger w as elected
to th e board of the State B ank of
New Ulm, succeeding th e late Carl F.
Crone, w ho died last December.
O sseo
George J. Dochniak, president, has
announced th e election of T hom as A.
Bladholm , president, Bladholm B ro th
ers C ulvert Company, and Calvin E.
Forbes, d istrict m anager, N o rth ern
N atu ral Gas Company, as m em bers of
the board of directors of th e N o rth
w estern S tate Bank.
S tanley A. M uckle w as nam ed to th e
board of th e Oakdale S tate B ank to
succeed Mrs. W. P. Jones, w ho de
clined renom ination.
All o th er directors and officers w ere
re-elected.
A
P a y n e sv ille
Oren R. Quill, fo rm erly cashier at
th e F irs t N ational B ank in H avre,
Mont., has been elected executive vice
p resid en t and d irector of the F irs t
S tate B ank in Paynesville. W illiam
H. H u n tington, w ho has been a direc
to r for 18 years, re tire d at th e annual
m eeting.
Mr. Quill began his ban k in g career
w ith th e F reeb o rn N ational B ank of
A lbert Lea in 1946. He has held v a ri
ous positions w ith o th er banks in
L ew iston and H avre, Mont, all of
w hich are affiliated w ith th e F irst
B ank Stock C orporation.
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Red W in g
First National
R oger L. Popp, With th e N o rthw est
B ancorporation’s credit dep artm en t
p rio r to J a n u a ry 1, w as nam ed cashier
at th e an n u al m eeting. Jam es H. F re e
m an, an em ployee for five years, was
elected a ssistan t cashier. E rv een C.
Johnson, w ho has had th e duties of
au d ito r for th e p ast year, w as elected
auditor.
Goodhue County National
J. W. Teele, a ssistan t cashier, has
been prom oted to a ssistan t vice p resi
dent, and R agna E. W intervold and
E sth e r E. L indberg have been ap
pointed assista n t cashiers.
All o ther officers w ere re-elected.
R o c h e ster
Northwestern National
R alph Stevens, ow ner of B lickle’s
Jew elers; R obert W ithers, pu b lish er of
the R ochester P ost-B ulletin, and K en
n eth P. Zubay, personnel m anager of
th e R ochester IBM plant, w ere elected
to th e board of directors.
R ichard Pike and Lyle Johnson, as
sistan t vice presidents, w ere prom oted
vice presidents. A lbert Stanton, cash
ier, w as nam ed vice presid en t and
cashier, and M ario A nderson, Dean
Ih rk e and R obert Cam pion w ere
nam ed a ssistan t cashiers. Rex Horlocker w as elected auditor, and Gerald
K anne, form er auditor, w as nam ed as
sista n t vice president.
Olmsted County
Jo h n D. Chisholm , president, has
been nam ed to a com m ittee for study
of th e function of the natio n al banking
system by Jam es J. Saxon, com ptrol
ler of th e currency.
T he stu d y is to determ ine steps to
be tak en th ro u g h ad m in istrativ e ac-
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67
tion as well as legislative proposals to
congress. T he head of each n atio n al
b an k w ill be asked to su b m it propos
als for changes.
Mr. Chisholm is p re sid e n t of th e
In d ep en d en t B an k ers of M innesota.
Rochester State
George M. L ibera w as prom oted
from a ssista n t cashier to cash ier and
W allace E. T u rn b lad w as nam ed as
sista n t cash ier a t th e a n n u a l m eeting.
All o th er officers and d irecto rs w ere
re-elected.
St. C loud
First American National
J. L. P a rk e r, vice p resid en t, w as
elected first vice president, and D on
ald F a b e r w as elected a ssista n t cashier
a t th e a n n u a l m eeting. O ther officers
and directors w ere re-elected.
St. Cloud National
Iren e W ilson, vice presid en t, w as
nam ed vice p resid en t and a ssista n t
tru s t officer at th e a n n u al m eeting.
All o th er officers and d irecto rs w ere
re-elected.
S a n d sto n e
S urplus has been in creased to $80,000 from $55,000 a t th e Sandstone
S tate Bank, according to a re p o rt from
E. L. Lundorff, cashier.
Sauk R ap id s
N orthwestern State
C. I. E rstad , p re sid e n t since 1945, re
tire d J a n u a ry 31.
He h as been elect
ed c h a i r m a n of
th e board.
Mr. E r s t a d is
s u c c e e d e d by
K eith E. W inge,
w ho j o i n e d th e
b a n k recen tly as
e x e c u t i v e v ic e
p r e s i d e n t . P rio r
to j o i n i n g t h e
K. E . W I N G E
Sauk Rapids
bank, Mr. W inge w as vice p resid en t of
the N o rth w e ste rn State B ank a t D aw
son, Minn.
Zapp National
Jo h n J. K asim or h as joined th e b an k
as a ssista n t vice p resid en t of th e loan
d ep artm en t. H e w as cash ier a t th e
N o rth w e ste rn S tate for five years.
S p r in g fie ld
v
A ugust N iem an, a d irecto r of th e
F a rm e rs and M erchants S tate B ank
since 1927 and p resid en t from 1927 u n
til 1950, re tire d from th e board a t th e
an n u a l m eeting.
N. V. Sw anbeck, cashier, w as elected
vice president, and G. M. P ierschel, assista n t cashier, m oved u p to th e cash
ie r’s post. All o th e r officers and d irec
to rs w ere re-elected.
T here are tim es when custom ers come to you w ith financing
needs exceeding th e ir line of bank credit. T h a t’s the tim e to
suggest they talk w ith T alcott! We can w ork out commercial
financing or fa c to rin g plans which provide th e capital your
custom ers need and help you re ta in th e ir good will . . . and you
can p a rtic ip a te in the financing if you wish. Y our custom ers
continue to bank w ith you . . . and re tu rn to you fo r full b o r
row ing req u irem en ts when th e ir cred it is again acceptable.
For booklet, “Five K e y s to Business G rowth,” write
to R. J. O’Connor, A ssistant Vice President, Jam es
Talcott, Inc., 209 S o u th LaSalle S treet, Chicago
4, Illinois, D ept. 18
Other offices
and subsidiaries
NEW YORK
BOSTON
ATLANTA
M IAMI
LOS ANGELES
SAN FRANCISCO
CHICAGO 209 South LaSalle Street Financial 6-1444
DETROIT First National Building WOodward 2-4563
MINNEAPOLIS First Acceptance Division
Northwestern Bank Building FEderal 9-7711
HOUSTON
PUERTO RICO
MONTREAL
PHILADELPHIA
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Twin City N ew s
üw nm
OMPUTATION of daily in te re st for business recen tly at 5620 Osseo
u n d e r th e term s of th e new “Sup Road. I t has a capital stru c tu re of
plem en t to R egulation Q” plus th e ex$400,000, including $160,000 capital,
change of new concepts in b an k in g $140,000 surplus, and $100,000 u n d i
m ethods and services w ere featu red at vided profits.
a financial sem inar atten d ed by some
Dallas J. Lawrence, retired division
200 Tw in Cities b an k executives last m anager of th e Cook P a in t and V ar
m onth.
n ish Company, is president, and Ed
The sem inar, sponsored by B u r ward J. Hamernick, a form er vice
roughs C orporation, h eard Robert Iv. p resid en t of M arquette N ational B ank
Sayed, special financial re p re se n ta tiv e
of M inneapolis, is executive vice p resi
from th e firm s’ D etroit hom e office, dent. The b an k is in d ependently op
outline and in te rp re t th e new reg u la erated.
tion.
* * *
* * *
The T h irte e n th A venue S tate B ank
T he N o rth w est B ancorporation has of M inneapolis w ill be know n hence
announced th e election of Eugene Fett fo rth as th e N o rth east State Bank, the
to a ssista n t com ptroller. He has been nam e it bore at its founding in 1916.
a ssista n t se cretary since 1959.
The p re se n t m anagem ent, headed by
* * *
T he F ifth N o rth w e ste rn N ational W alter Rasmussen, president, changed
B ank of M inneapolis m oved into its th e nam e w hen it took over in 1947.
In addition to approving th e change,
new b an k in g q u a rte rs last m o n th at
H olm es and Lake S treet. Open house stockholders also elected Frank Pec
chia, vice presid en t and cashier of the
w as scheduled for M arch 2 and 3.
bank, to th e board of directors. Mr.
* * *
John H. Schweiger, vice p resid en t of R asm ussen rep o rted the b a n k ’s assets
a t th e end of 1961 w ere m ore th a n
the New Y ork Stock E xchange, has
$5,400,000. D eposits w ere up about
been announced as th e new est p a rtn e r
$250,000 to to tal $4,597,000.
of Paine, W ebber, Jack so n & Curtis,
íjc 5¡C ifc
Tw in Cities in v estm en t firm. He w ill
N ew ly elected directors at Tw in City
h ead q u arte r in New Y ork and is the
b anks include:
firm ’s 44th p artn er.
Orrin E. Thompson, president, O rrin
* * *
Paul Rifkln, secretary, M orris Rif- T hom pson Hones, Inc.; Arthur A. Sell
kin and Sons m eat packing p la n t in ini, g eneral m anager, In d u stria l Con
stru ctio n Company, and Edwin S. ElSouth St. Paul, has been added to the
board of th e D rovers E xchange State well, Jr., vice president, N orthland
M ilk and Ice Cream Company, to the
Bank.
adv iso ry board of th e Lake S treet Of
All officers w ere re-elected.
* * *
fice, N o rth w estern N ational B ank of
Harvey T. Orndorff, cashier, w as M inneapolis.
Louis N. Zelle, vice president, Je f
prom oted to vice p re sid e n t and cash
ier at th e C itizens S tate B ank in St. ferson T ra n sp o rtatio n Company, and
Louis P ark, and Charles A. Lovejoy Ralph M. Jacobson, president, Jacob
w as prom oted to a ssista n t vice p re si son M achine W orks, to th e advisory
dent. Mr. O rndorff w as w ith th e F irs t board of th e St. A nthony F alls Office,
N ational B ank of R edw ing before F irs t N ational B ank of M inneapolis.
joining th e C itizens State last A ugust.
Robert J. Crabb, executive vice p re s
Mr. Lovejoy has been w ith th e b an k ident, Southdale M anagem ent Compa
since 1959, com ing from th e Ja m e s ny, and Donald O. Erickson, president,
tow n N ational B ank, Jam estow n, N. D. G lacier Sand and G ravel Company, to
* * *
th e board of directors, F irs t Southdale
B rooklyn C enter State B ank opened N ational Bank.
C
N o rth w e s te rn B anker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Rollin O. Bishop, ch airm an of the
board of directors. A m erican N ational
B ank of St. Paul, has been appointed
v o lu n teer state ch airm an of th e M in
nesota Savings Bond Com m ittee by
T reasu ry S ecretary Douglas Dillon.
He succeeds Arnulf Ueland, chairm an
of th e board of directors, M idland N a
tional B ank of M inneapolis.
* * *
T hree v eteran em ployees of th e
F irs t N ational B ank of M inneapolis
retire d recently. T hey are Emma G.
Wolf, u n it teller, w ho had been w ith
th e b ank m ore th a n 33 years; Ray
mond 1). Fuller, safe deposit m anager,
32 years, and Harold G. Callister, m an
ager, exchange and analysis d ep art
m ent, 34 years.
* * *
Prom otion of th re e senior officers
w as announced recen tly by John deLaittre, president, F a rm e rs & M echan
ics Savings B ank of M inneapolis.
Hermon J. Arnott, w ith th e b ank 29
years, w as m ade executive vice p resi
dent. Charles P. Clifford, w ith the
b an k since 1947, w as nam ed senior
vice president. Henry S. Kingman,
Jr., w ith th e b an k since 1957, w as pro
m oted to vice president.
Mr. d eL aittre also announced elec
tion of Robert E. Van Valkenburg and
Howard L. Imme as a ssistan t secre
taries as p a rt of an expansion of the
b an k ’s m ortgage d ep artm en t opera
tions.
* * ^
A new, fully tran sisto rized In te rn a
tional B usiness M achines C orporation
1401-1402 com puter system designed
especially for b an k data processing,
has been installed in th e A m erican
N ational B ank of St. Paul.
* >k >k
William R. Chapman, president, re
ported M idland N ational B ank re
sources at year-end totaled a record
$89,743,000, a 12 p er cent gain over
1960. D eposits as of Decem ber 31 to
taled $80,297,000, up 13.2 p er cent.
Loans averaged $43,329,000 d uring
1961, an increase of 1.3 per cent. Rob-
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Minnesota News
ert W. Morgan w as added to th e board
and John R. Montgomery w as p ro
m oted from a ssista n t vice p resid en t to
vice president.
** *
Arm ili Ueland, board chairm an, Mid
land N ational B ank of M inneapolis, is
th e new p resid en t of th e H en n ep in
C ounty U nited F und. W illiam R.
Chapman, p resid en t of M idland, w as
re-elected tre a su re r.
** *
E lection of six new vice p resid en ts
and prom otion of 20 o th er staff m em
bers have been announced by John A.
Moorhead, p r e s i d e n t , N o rth w estern
N ational B ank of M inneapolis.
E lected vice p re sid e n t w ere Homer
C. Luick, Edward W. Asplin, John A.
McHugh, Richard H. Vaughan, O. Jack
Talbot and John D. Rogers.
E lected a ssista n t vice
p resid en ts
w ere Donald A. Shulthesis, Mrs. Virgille Peeke and Ralph B. Scott of th e
b a n k ’s com m ercial d ep artm en t, and
W^rnm*. m
VAUGHAN
Militi
ÆÊ
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TALBOT
■SBSRæHS
ROGERS
John C. McKee, Henry G. Eagan, Jr.,
and Theodore M. Halvorson of th e
tr u s t d ep artm en t.
E lected tr u s t officers and assista n t
secretaries w ere W i l l i a m C. Ball,
Charles R. Bailey, Jr., Robert W. Col
bert, Richard G. Slade, EeRoy F. Piche
and Wallace E. Erickson.
E lected a ssista n t cashiers w ere Fred
H. Herkey, Edward C. Radi and E u
gene N. A xness of th e com m ercial de
p artm e n t. E lected a ssista n t tr u s t offi
cers w ere Robert C. Sullivan, George
T. Eggen, Bruce W. Blackburn and
Herbert AV. Day, Jr. E lected a ssist
a n t secretary w as John S. Haertel.
* * *
F irs t N ational B ank of M inneapolis
had 1961 n e t o p eratin g earn in g s of
$4,227,000, a gain of $167,363 over 1960,
Gordon Murray, presid en t, disclosed in
th e b a n k ’s a n n u al report.
D eposits to taled $511,203,000 a t th e
end of 1961, m ark in g th e first tim e th e
b an k h as exceeded th e half-billion dol
lar m ark. Loans and discounts totaled
$252,997,000 at year-end.
Mr. M urray announced election of
James T. Wyman, executive vice p resi
dent, S u p e rv a lu Stores, Inc., to the
b a n k ’s board, and of Leonard H. Mur
ray, president, Soo Line R ailroad Com
pany, to th e b o ard ’s tru s t com m ittee.
5{C 5jc 5}î
N o rth w estern N ational B ank of M in
neapolis had consolidated n et o p erat
ing earn ings of $5,049,536 for th e bank
an d its b uilding subsidiaries last year,
John A. Moorhead, president, rep orted
at th e a n n u al m eeting.
D eposits totaled $533,430,000 a t yearend, topping th e half-billion m ark for
th e second stra ig h t year. Loans at
year-end totaled $277,015,000.
Mr. M oorhead said th e b a n k ’s Gen
eral E lectric 210 com puter system is
scheduled for com plete installatio n by
early sum m er. New drive-in facilities
in N o rth sta r C enter are scheduled to
open by mid-year, he said.
* * *
Howard A. W estlie has been elected
cashier and executive officer of the
Savage S tate Bank. Mrs. Carol B.
Schlick w as elected a ssistan t cashier.
=k =k =k
R. L. Smith, president, Stock Y ards
N ational B ank of South St. Paul, said
th e b an k has increased its capital and
su rp lu s from $1,500,000 to $1,800,000,
th e fo u rth such action tak en in the
p ast ten years.
* * *
Mrs. Lois Johnseu and William M.
Bartlett of th e in stallm en t loan d ep art
m ent, Richfield B ank & T ru st Com
pany, have been prom oted to loan of
ficers, S. L. Jerpbak, president, a n
nounced.
* * *
William F. Maser, a ssistan t cashier
a t F irs t N ational B ank of H opkins
since 1952, has been elected an assist
a n t cashier of F irs t N ational B ank of
M inneapolis.
* * *
Arthur R. Ellisen and Curtis H.
H olm quist have been nam ed a ssistan t
m an ag ers at th e Lake S treet Office,
N o rth w e stern N ational B ank of M in
neapolis. George M. Whitfield w as
elected to a sim ilar post at th e b a n k ’s
A m erican Office.
* * *
Carl R. Pohlad, president, M arquette
N ational B ank of M inneapolis, dis
closed in th e an n u al statem en t of con
dition th a t th e b a n k ’s resources gained
$7,617,000 last y ear to to tal $93,756,000.
D eposits increased $6,691,000 to $87,029,000 at year-end.
* * *
The A ssociation of R egistered B ank
H olding Com panies w ill hold its an
n u al m eeting in M inneapolis, May 28
and 29. Joseph H. Colman, president,
F irs t B ank Stock C orporation, is asso
69
ciation president, and Goodrich Lowry,
president, N o rthw est B ancorporation,
is a director.
* * *
Show n here are Roland L. St. Clair,
a M inneapolis b an k er for 33 years,
elected presid en t of F irs t Produce
S tate Bank, succeeding Swen O. Huso,
w ho becom es ch airm an of th e board,
and Earl P. Fredell, cashier, w ho w as
ST. C L A IR
HUSO
FREDELL
elected vice p resid en t as announced
in th e N orthw estern B anker last
m onth.
* * *
Donald W. Judkins, president, F irs t
Southdale N ational Bank, announced
prom otion of John S. Strom to assist
a n t cashier. He also rep o rted th e
b a n k ’s deposits increased to a record
$6,890,000 last year, a 31 p er cent gain.
L oans and discounts w ere up 21 per
cent to a new high of $3,542,000.
5k * *
N o rthw est B ancorporation had rec
ord consolidated n et o perating e a rn
ings of $16,260,000 in 1961, a gain of 5.4
per cent over th e previous year, Good
rich Lowry, president, announced.
A fter p referred stock dividends, e a rn
ings w ere equal to $2.97 p er share,
com pared w ith $2.84 p er share on
few er shares in 1960.
Total deposits at year-end w ere $1,955,193,000, a gain of 6.9 p er cent over
1960. Loans w ere up 3.1 per cent to
$1,027,744,000.
* * *
F irs t B ank Stock C orporation had
consolidated n et o p erating earnings of
$15,200,106, or $4.38 per share, in 1961,
Joseph H. Colman, president, reported.
T his com pared w ith $15,313,598, or
$4.41 p er share, in 1960.
T otal deposits of F irs t B ank Stock
affiliates totaled $1,797,722,000, a gain
of 8.5 p er cent over th e sam e date in
1960. Loans w ere $924,268,000 com
pared w ith $912,448,000 on D ecem ber
31, 1960.
E lected to th e board w ere Stephen
J. Keating, executive vice president,
M inneapolis-H on e y w e ll R e g u l a t o r
Company, and Charles J. Curley, board
chairm an, F irs t T ru st Com pany of St.
Paul.
* =k *
C rystal S tate B ank has announced
plans for a $250,000 building to be
com pleted by th e spring of 1963. The
b ank now occupies leased q u a rte rs at
5616 W. Broadw ay. Oscar Schultz,
N o rth w e ste rn Banker, March, Î962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
70
M in n e s o t a N e w s
president, said th e tw o-level building
w ill be faced w ith brick, m arble and
alum inu m and w ill have p a rk in g space
for m ore th a n 100 cars.
* * *
C entu ry C apital C orporation, a real
e s t a t e in v estm en t firm, has been
form ed in M inneapolis w ith 100 M in
nesota b u sinessm en as equal sh a re
holders. W alter C. Rasmussen, p re si
dent, N o rth east S tate B ank of M inne
apolis, is p resid en t of th e new co rpora
tion.—End.
S tew artville
H om er W oolridge has been nam ed
ch airm an of th e F irs t N ational B ank
and is succeeded as p re sid e n t by P. P.
H enning, fo rm erly executive vice p re s
ident. J. A. Stotko, fo rm erly a ssista n t
vice presid en t, has been nam ed vice
presid en t and has been added to th e
board of directors.
W. C. A lm quist, R osem ount, has
been elected to th e board of th e Sav
age S tate Bank. H e is p resid en t of
Lilly-A lm quist, Inc., a M inneapolis in
su ran ce agency.
73, w ho has reached th e retirem en t
age for board m em bers.
Mr. Spaulding is re tirin g a fter 28
y ears of service. L ast Ju n e he w as
honored by the M innesota B ankers
A ssociation for 50 y ears in banking.
W aconia
W h eaton
Savage
George C. K lein w as elected p resi
d e n t of th e F irs t N ational B ank to
succeed th e founder and organizer of
th e bank, th e late C harles H. Klein.
O ther officers include Dr. A. L. Arnold,
vice p resident; Clarence E. Ortlip,
cashier, and Ben H. H a rtm a n n and
D elores H ilk, a ssistan t cashiers.
Open house w as held recen tly at
th e com pletely rem odeled and redec
orated F irs t State Bank. F e a tu re s of
th e rem odeling include the addition of
a n ig h t depository, a face-lifting of
th e b an k clock, a new glass and alum
inum entrance, in terio r redecorating,
new lighting, flooring, fu rn itu re and
draperies.
W aseca
Otto S. F rederick, popular auction
eer, w as nam ed to th e board of the
F a rm e rs N ational B ank a t the annual
m eeting. He replaces C. W. Spaulding,
W in n eb ago
C. R. W inch, cashier, has been elect
ed to th e board of th e F irs t N ational
Bank, increasing m em bership to sev
en. All o th er directors and officers
w ere re-elected.
W in on a
The Live S t o c k N ational B a n k
S i o u x . Ci t y ; I o w a .
C . L . A D A M S , PR E SID EN T
February 13» 1962
Dear Friends:
Each year on February 12th it is our
pleasure to have the opportunity to visit
with many of our Correspondent Bankers
and Friends from South Dakota, Iowa,
Nebraska and Minnesota, It is the one day
"the bankers come to town" and make the
Iowa Group 1 Meeting the most successful
meeting of its type in our entire state.
On behalf of the Directors, Officers, and
Employees of The Live Stock National, may
I thank you for coming this year. To those
of you who came, we know you will come
back, and to those of you who missed, may
I extend a sincere welcome for you to come
neoct February 12, 1 9 6 3 .
We also welcome you to our bank at any
opportunity you may have to visit Sioux City,
Very truly yours,
H o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Merchants National
Van H. Kahl, a ssistan t vice presi
dent, w as prom oted to vice president
a t th e an n u al m eeting. He has been
w ith the b an k since 1916 and w as
nam ed assista n t vice p resid en t in 1959.
Winona National & Savings
W. M. L am b ert w as prom oted from
vice p resid en t to senior vice presid en t
and w as elected a directo r at the an
n u al m eeting. F ra n k G. M ertes, as
sista n t general ru ra l sales m anager,
W atkins Products, Inc., also was
elected to th e board. O ther directors
w ere re-elected, as w ere all officers.
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W orth in g to n
M. R. K loster, p resid en t of th e Citi
zens S tate B ank of Scobey, Mont., has
been elected presid en t of th e State
B ank of W orthington. He retain s his
position w ith th e M ontana bank.
D. S. A m undson w as renam ed chief
executive officer of th e bank, a posi
tion he has held since tra n sfe rrin g
from Scobey last Novem ber.
Lloyd A m undson has joined the
b an k as vice president. He has been
state sales m anager for th e A m erican
A utom obile A ssociation in N ebraska
for th e p ast four years.
M artin Voss w as renam ed vice p res
ident, and M artin Roggen, cashier for
the p ast four years, w as elected vice
p resid en t and cashier. H arold Fox,
a g ricu ltu ral specialist for th e p ast
th ree years, w as nam ed a ssistan t vice
presid en t and a g ricu ltu ral re p re se n ta
tive. R obert B artholom aus and LaVonne M unns w ere nam ed assistan t
cashiers.
H. W. H oodecheck has retire d as
president, and M artin N elson retired
as vice president.
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71
th e vacancy left by his father, th e for
m er president.
South D ak ota
Gary
S urplus at th e G ary S tate B ank w as
increased from $25,000 to $50,000 at
the recen t an n u al m eeting. All direc
to rs and officers w ere re-elected.
NEW S
C. C. UNO
A. S. GULLICKSON
President
L ake A n d es
Aberdeen
Secretary
Huron
The tra v e l d e p a rtm e n t of th e A m er
ican N ational B ank of R apid City is
han d lin g re serv atio n s for th is y ear's
SDBA L egislative T rip to W ashington,
D. C. The group of b an k ers p lan to
leave W old-C ham berlain Field, M in
neapolis, at 1. p.m., Sunday, M arch 25,
via U nited A irlines je t and in ten d to
leave F rie n d sh ip Field, W ashington,
a t 1 p.m., T hu rsd ay , M arch 29, via
N o rth w est O rient A irlines jet. H otel
reserv atio n s are being m ade th ro u g h
A. S. G ullickson, SDBA executive sec
retary .
there. Bob Phillips, w ho joined the
staff a t B ritto n tw o y ears ago, w as
elected a ssistan t cashier and a ssistan t
m anager.
A llen (Pete) E h rke, a ssistan t vice
p resid en t a t th e Redfield branch, w ho
h ad tra n sfe rre d recen tly to th e H ecla
b ran ch as m anager, w as elevated to
vice p resid en t and m anager a t Hecla.
E lm er Goetz, assistan t cashier in
A berdeen, w ho w en t to Redfield w hen
Mr. E h rk e w as tra n sfe rre d to Hecla,
w as prom oted to assistan t vice p re si
den t and assista n t m anager of the
Redfield branch.
F ran k R. Strain
B e r e sfo r d
SD B A W ash in gton T rip
F ra n k R. Strain, 85, fo rm er su p e rin
ten d en t of banks, died recen tly a t his
hom e in Y ankton. He w as su p e rin
ten d en t of b an k s from 1932 to 1936
and a fo rm er m ayor of F o rt P ierre.
He had been cashier of th e F o rt P ie rre
N ational B ank before his ap p o in tm en t
to the sta te post.
A b er d e e n
Aberdeen National Bank
W illiam F. H u rrell, ag re p re se n ta
tive since 1958, has been elected an
a ssista n t cashier. All o th er officers
have been re-elected.
Farm ers and Merchants Bank
S t a n l e y P e te r
s en, a s s is ta n t
B row n C ounty exten so n agent, has
resigned th a t po
sition to becom e
ag re p re se n ta tiv e
of th e bank, a n
n o u n c e s G. L.
H ill, e x e c u t i v e
vice p resident.
Andes State Bank
The A ndes State B ank opened for
business last m o n th and is the first
ch artered b an k to serve th e com m u
n ity for m ore th a n 20 years. D uring
th is tim e, th e area has been served by
an office of th e Com m ercial State B ank
of W agner.
M orris G. W in ter and his wife, Doris,
w ill be contolling shareholders. H e is
presid en t and board chairm an. Ray
Stedronsky, form erly w ith th e Com-
T.
A. P eterson, vice president, F irst
N ational Bank, has succeeded th e late
A. R. Olson as president. Mr. P e te r
son has been w ith th e b an k 35 years.
O thers advancing in succession are:
C R. Olson, to vice president; Calm er
Thom pson, cashier; Sophia M uhlenO P E N H O U S E w as h e ld la s t m o n th a t
k o rt and W illiam V erm illion, a ssistan t
th ese q u a rte rs fo r th e n ew A ndes S ta te
cashiers.
B a n k , L a k e A ndes, S. D. N e a rly 200 a c
B ryant
L. A. Jacobson, executive vice p resi
dent, B ry an t S tate Bank, has an
nounced th a t th e capital stock of the
b an k has been increased from $25,000
to $50,000 via a 100 p er cent stock divi
dend.
Clark
W ayne Olson, secretary -treasu rer,
Olson M otor Company, and K enneth
Pom m er, a s s i s t a n t m anager, Clark
C om m unity Oil Company, have been
elected directors of th e Citizens State
B ank and an a ssistan t m anager of the
b a n k ’s W illow Lake branch, respec
tively.
c o u n ts w e re opened d u rin g th e first d a y
of b u sin e ss a n d d e p o sits e x ceed ed $200,-
000.
m ercial State office, is secretary, cash
ier and in su ran ce d ep artm en t director.
Mrs. L eonard K isely and Mrs. M arlin
L aska are bookkeepers and tellers. Di
rectors o ther th a n Mr. W in ters and
Mr. S tedronsky are T. H. K rell and
V ernon C. M artin. O ther shareholders
are R ussell Stedronsky, Dr. D. O.
N achtigal, A lbert Svatos, George K ra
m er and W a rre n Eldridge.
Commercial State Bank
A lex W illiam son, vice p resid en t of
the Lake A ndes office of th is bank,
w hich has recen tly been closed, w ill
rem ain here to continue operation of
th e Com m ercial In su ran ce Agency.
D u p ree
First National Bank
H ow ard B astian, p resid en t of Bastia n F inance, Inc., and W illiam H.
M anning, vice p re sid e n t and cashier
of th e bank, have been elected direc
tors.
M aynard K am bak, a ssista n t cashier
in A berdeen, w as advanced to a ssist
a n t vice president. D aniel Beck, as
sista n t vice p re sid e n t an d a ssista n t
m anag er of th e B ritto n bran ch , w as
nam ed vice p re sid e n t and m an ag er
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
R aym ond J. Lenk, a ssistan t cashier
th e p ast th re e y ears a t th e C rookston
N ational Bank, Crookston, Minn., has
assum ed his new duties as cashier of
th e F a rm e rs State B ank of D upree.
Lead
Jo h n R. Trew eek, president, M iners
and M erchants Savings Bank, has
been advanced to ch airm an of th e
board and D orothy R uzick has been
elected a ssista n t cashier.
F lan d reau
George A. Rice, fo rm erly vice p resi
dent, is now p resid en t of th e F a rm e rs
S tate B ank, succeeding th e late W il
liam D uncan, Sr. K enneth D uncan
has been elected to th e board to fill
M obrid ge
J. P. Bzoski, president, Citizens
Bank, has announced an increase in
th e capital stock from $50,000 to $100,000.
N o rth w e ste rn Banker. M arch, 1962
72
S IH t .i
H a it is • Iu n io r S t a f f C o n f o r m e r
VISITING- b e tw e e n sessions a t le f t, a re , fro m le ft, A. S. Gullickson, exec, secy., S D B A ; Martin Haar, casli., F a rm . & M erch.,
A b e rd ee n , a n d Hilmer Opp, a.c., A b e rd e e n N a t. P e rso n s a tte n d -
in g th e c o n fere n ce a re show n a t th e b u ffe t ta b le in th e c e n te r
p ic tu re , a n d a t r ig h t a re A. H. Miller, G a ry S t. B k .; Joe Van de
Voort, a.c., D a k o ta S t. B k., M ilb a n k , a n d Clarence Sauer, a.c.,
S e c u rity B k., W e b ste r.
HEM E of th e J u n io r Staff Con cago; P at DuBoise, executive vice
ference conducted by th e South president, F irs t State Bank, Sauk
D akota B ankers A s s o c i a t i o n lastCentre, Minn.; and E. W. Asplin, vice
m onth w as “Selling Y our B an k ’s Serv president, N o r t h w e s t e r n N ational
ices.” The one-day conference w as B ank of M inneapolis.
designed and especially p lanned for
The afternoon program featu red spe
ju n io r officers, tellers, bookkeepers cial group discussion sections. Group
and o th er o perational personnel.
discussion leaders w ere E. C. Pieplow,
F eatu re d sp eakers a t th e conference F irs t N ational B ank of A berdeen; M ar
included V erne M artin, Old M illstone tin H aar, F a rm e rs and M erchants
Farm s, N ew ton, Iowa, w ho w as th e
B ank, A berdeen, and H ilm er Opp, Ab
banquet speaker. His topic w as “You erdeen N ational Bank.
Have More to Sell th a n M oney.” O ther
speakers w ere C. R. Hall, second vice
L ake P r e sto n
president, C ontinental Illinois N a
S tockholders of th e Oldham State
tional B ank and T ru st Com pany, Chi- B ank have voted to increase capital
T
Make your
next move
to
from $25,000 to $50,000 by a tra n sfe r
from undivided profits. H arm on Kopp eru d w as elected president; L ynn
Kalvig, vice p resid en t and cashier, and
F ran cis Malone, a ssistan t cashier.
L etch er
T he South D akota b anking com m is
sion has approved a b ranch b an k at
L etcher. A Class “A” branch, it will
be operated by th e Live Stock State
B ank of A rtesian.
M urdo
L. L. Lillibridge, president, Jones
C ounty State Bank, has announced
th a t E lm er F. Tim son, Jr., w ith the
b ank since 1957, has been advanced
from vice presid en t to executive vice
presid en t and m anager of th e bank.
Rajjid City
R obert
N ational
has been
has been
Clausen, w ith the A m erican
B ank since Novem ber, 1960,
elected a ssistan t cashier. He
in ban k in g since 1947.
Spear fish
Bank of Belle Fourche
A rnold Domke, m a n a g e r of the
Spearfish b ran ch since the b ran ch was
opened in A ugust of 1961, has been
elected a ssistan t cashier.
United States Check Book Company
1311 HOWARD STREET
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OMAHA 2, NEBRASKA
First National, Black Hills
The g ran d opening of th e new
Spearfish office w as held last m onth
and people of th e area visited an allm odern stru c tu re at 131 W est H udson
S treet to vie for door prizes and to
sh are th e en th u siasm and refresh
m ents th ey found there. C hildren
w ere tre a te d to a free m atinee m ovie
a t th e V ita T heater, as w ell as re
freshm ents.
S tu rgis
F red B arth, president, B ear B utte
V alley Bank, has announced th e ac
quisition o f'th re e pieces of dow ntow n
com m ercial p ro p e rty for fu tu re devel
opm ent of th e bank.
y
South
T rip p
T he D akota S tate B ank held open
house re c e n tly in observance of its
60 y ears of co ntinuous service to th e
people of its com m unity. G randsons
of th e foun d er of th e b an k — K. G.
K latt, president, and M aurice P. K latt,
cashier — g reeted guests.
T yn d all
Donald V acknitz, fo rm erly w ith th e
resid en t en g in e e r’s office of th e South
D akota D ep artm en t of H ighw ays, has
joined th e staff of th e S ecurity State
Bank, succeeding Mrs. L ouis Kniffen.
M ORE SO U T H D A K O T A
N EW S O N PAGE 8 1
D akota
New s
73
S tate In su ran ce Com m issioner Rob
S io u x F u lls
e rt H u rlb u t said th e gross am o u n t of
First National Bank
fees involved w ould be like locating
IRECTORS of th is b an k have an
a new in d u stry in South Dakota.
nounced th e prom otion of W ar
G.
Oliver Nordby, vice president, a t
re n D. N elson to a ssista n t cashier. E.
tended a m eeting of th e In stallm en t
T. E d w ards has re tire d as a ssistan t
C redit Com m ittee of th e A.B.A. last
cashier and M ildred L in ah an as sav
m onth at Boca Baton, Fla.
ings teller afte r m any y ears of service.
Sioux Valley Bank
N orthwest Security National
Dr.
W
allace
A. A rneson has been
All bonds and negotiable securities
elected a d irector of th is bank.
w hich South D akota holds in reserve
Sioux Falls Chapter, A.I.B.
for South D akota in su ran ce com panies
A sh o rt course, Proof and T ransit,
have been sw itched from th e M ar
q u ette N ational B ank of M inneapolis is being offered at th is tim e for p e r
to th e N o rth w est S ecurity N ational. sonnel of Sioux F alls banks and the
T he account had been at th e M ar im m ediate area. B. E. Bork, cashier,
Sioux V alley Bank, is in stru ctin g the
q u ette th e p ast 26 y ears and totals
class.
ap p ro x im ately $55 million.
D
Sickness, Accident and Hospital
Insurance for Select Risks
M ore than 5 6 years of successful service to
Bankers and other select risks, with protection
at cost.
Write for application and literature .
P A U L C LE M E N T , President
MINNESOTA COMMERCIAL MEN'S ASSOCIATION
2 2 5 0 Pillsb u ry Ave.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M inneapolis 4, Minn.
N o rth w e ste rn Banker, March, 1962
a n t cashier, respectively, of th e F o ste r
C ounty S tate Bank.
N orth D ak ota
D ic k in so n
N EW S
GARY L. LERBERG
BILL DANER
President
Secretary
Parshall
Bismarck
B ism arck
Bank of North Dakota
The state in d u stria l com m ission has
accepted th e resig n atio n of Ted W.
Sette, m an ag er of th e bank. Mr. Sette
said he is resig n in g as of A pril 1 as
he m u st devote his tim e to duties as
vice president, S tate B ank of B urleigh
County, a t Sterling.
D w ane Jen sen w as elected an
to r as all officers and directors
re-elected. He has been w ith th e
since J u ly 1 and previously w as
th e F irs t N ational of LaCrosse,
audi
w ere
bank
w ith
Wis.
B ow m an
E lm en M orland, Bow m an attorney,
has been elected to th e board of the
F irs t N ational Bank, announces D. G.
Hogoboom, president.
Dakota National Bank
E.
V. L ahr, Jr., m anaging p a rtn e r
C arrington
in L ah r and L ahr, B ism arck in su ran ce
and real estate firm, has been elected
Roy Johnson, ag rep resen tativ e, and
to th e board of th e bank, succeeding G erald Pierson, teller, have been elect
th e late J. C. Taylor.
ed assista n t vice presid en t and assist-
F ir s t o f
First National Bank
W ilbur Sum m ers, w ith the b ank 21
y ears in m any capacities from teller
to cashier, has been elected vice p resi
dent. H a rry Lenz, w ith the b an k since
1946, has been prom oted from assist
a n t cashier to cashier. R alph Roshau,
w ith th e b an k since 1946, has been
elected assista n t cashier and auditor.
Gordon F ish er, w ith th e b ank since
1956, has been nam ed a ssistan t cash
ier. O ther officers w ere re-elected.
Liberty National Bank
V incent Kovash, 91, a p ast presid en t
of th e bank, died recently in D ickin
son. Born in Czechoslovakia in 1870,
he came to th e U nited States in 1886,
hom esteading. In 1918 he opened a
store in New H radec and soon w as
nam ed by th e governor as th e first
county c o m m i s s i o n e r to organize
D unn County from a te rrito ry w hich
was to be broken dow n into a state
and th e n into counties.
D rak e
F u r t / o O p e n s D r i r eF irsE-lected
i n a t the an n u al m eeting of the
t N ational B ank were: W. R.
Olson, president; H. M. Rossebo, exec
utive vice president; A. L. G arnaas,
vice president; E. A. Jans, cashier, and
H elen R ieniets and R uby P attis, as
sistan t cashiers.
D rayton
C apital stock of th e D rayton State
B ank w as increased from $50,000 to
$100,000 by stock dividend, at th e re
cent an n u al m eeting.
E n d erlin
CUTTING THE RIBBON to open th e n ew d riv e -in a re, fro m le f t : Ray Brown, p res.,
F a rg o T ra d e s a n d L a b o r A sse m b ly ; Mayor Herschel Lashkowitz; William F. Graves,
p re s., F i r s t N a tl., a n d C. Warner Litten, pres., F a rg o C h a m b e r o f C om m erce. B a n k
officers a n d d ire c to rs a re show n in th e b a c k g ro u n d .
TRULY re p re se n ta tiv e labor-m an com pletely protected from th e w eath er
agem ent-public team assisted th e full half-block from B roadw ay to
P resid e n t W illiam F. G raves in th eth e re a r of th e bank. The auto teller
ribbon c u ttin g signifying th e opening b ask ets can be raised or low ered so
of drive-in facilities a t th e F irs t N a com pact cars or tru c k s can be handled
tional B an k and T ru s t C om pany of w ith equal ease.
Fargo.
The first th ree custom ers w ere p re
R ay Brow n, president, F arg o T rades
sented a w all plate w hich can be used
and L abor A ssem bly, an d C. W a rn e r equally w ell as a snack tra y as it
L itten, president, F arg o C ham ber of featu res a han d p ainted p h easan t on
Commerce, held th e rib b o n w hile a ceram ic disc m ounted in a beautiful
M ayor H erschel L ashkow itz and P re si w a ln u t plate.
d en t G raves used “king size” shears
T he drive-in service is th e first fa
to open th e new b an k in g facilities to cility com pleted in th e $1% m illion
dollar rem odelling and m odernization
th e public.
The facilities are actu ally “drive-in” program . The co n stru ctio n w o rk on
as th e b an k custom er ap p roaching any th e b an k probably w ill not be com
of th e th re e auto te lle r w indow s is pleted u n til early sum m er or fall.
A
N orthw estern Banker, March, 7962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Dean H egeholz w as prom oted from
a ssistan t vice p resid en t to vice p resi
dent, and A rley W atne, from cashier
to cashier and vice president, a t the
recen t an n u al m eeting of th e Peoples
& E n d erlin S tate Bank.
F argo
F o u r staff m em bers of th e F irs t N a
tional B ank and T ru st Com pany w ho
w ere prom oted recen tly are: M errill
Stene, from a ssistan t vice presid en t to
vice president; W illiam A m undson, as
sistan t vice p resid en t to vice p resi
dent; W arren DeKrey, a ssistan t cash
ier to a ssistan t vice president, and
R ichard Ram age, w ho w as elected as
sistan t tru s t officer.
G rand F ork s
A 33 % p er cent stock dividend, w ith
a p a r value of $250,000, w as voted re
cently by stockholders of th e F irst
N ational B ank at th e ir an n u al m eet
ing. T his increased capital stock from
North Dakota News
$750,000 to $1 m illion. Surplus is
$2,250,000.
Also, R o b ert F. Massee, p resid en t
and m an ag er of M innesota D airy Com
pany, has been added to th e board, in
creasin g th e n u m b er of d irecto rs from
10 to 11.
H atton
A $25,000 in crease in capital w as
m ade a t th e F a rm e rs and M erchants
N ational B ank at th e a n n u al m eeting
and th is raises th e b an k capital from
$75,000 to $100,000.
J a m esto w n
First James River National
P. J. Schirber, p resid en t, has a n
nounced th e election of tw o new offi
cers and th e prom otion of six others.
The tw o new officers are: R obert
M ountain, ag re p resen tativ e, elected
assista n t cashier and ag re p re se n ta
tive, and B arb ara Pogue, auditor,
nam ed a ssista n t cashier and auditor.
P rom oted w ere: E. W. H auser, from
vice p re sid e n t to executive vice p re si
dent; A rvel Koehn, from cashier to
vice president; R. H. Miller, from as
sista n t vice p resid en t to vice p resid en t
and in sta llm e n t loan m anager; Dan
Schorsch, from a ssista n t cashier to
cashier; A lvin Rudolph, from a ssista n t
cashier to a ssista n t vice p resid en t and
assista n t in sta llm e n t loan m anager;
M arw in Sm ith, from a ssista n t cashier
to a ssista n t vice president.
Jam estown National Bank
D arw in R onngren, w ith th e b ank
since F e b ru a ry , 1960, and h an d lin g a u
d ito r d uties since Septem ber of last
year, has been elected auditor.
L an gd on
P ain tin g , piling w ork, tilin g of th e
ceiling and of th e floor are being com
pleted on th e addition to th e F irs t
B ank of L angdon and th e addition is
expected to be com pletey done w ith in
th e n e x t few days. W ork w as sta rte d
last Septem ber.
L itch field
since joining the b ank a year ago, has
been prom oted to cashier and Mrs.
A gnes W eisgarber, teller, has been
prom oted to a ssistan t cashier.
M in n ew au k an
M ason A. H eiberg, p resid en t of the
F a rm e rs State Bank, left last m onth
on a je t trip “around the w orld in
80 d ay s” w ith visits in Spain, Greece,
India, Ceylon, Singapore, T hailand,
H ong K ong and Japan.
M inot
American State Bank
M orris O. B roschat has been ele
v ated from a ssistan t vice p resid en t to
vice p resident; R ussell McDaniel, from
a ssista n t cashier to a ssista n t vice p res
ident, and E ldon Seelig, to assistan t
cashier.
Also, th e board voted to authorize
an increase in th e b a n k ’s su rp lu s from
$400,000 to $500,000. The capitaliza
tion now is $1,240,000.
First National Bank
J e rry Connole, w ith the b ank since
M arch, 1960, has been prom oted from
a ssista n t au d ito r to au d ito r and B u r
ton D. T raub, w ith th e b an k since
Ju ly , 1960, serving m ost recen tly as
m anager of the bookkeeping d e p a rt
m ent, has been nam ed a ssistan t au d i
tor.
75
cashier from 1909 to 1920 and cashier
from 1920 to 1936, at w hich tim e he
becam e president. He becam e board
ch airm an in 1955 and continued as a
d irector u n til his retirem en t. Mr.
B raun has been on th e board since
1928 and re tire s as vice president.
Wahpeton National Bank
Jo h n R. Cherne, w ith th e b an k since
1958, has been tra n sfe rre d to th e Mid
land N ational at Billings, Mont. He
had been m anager of th e Tim epay de
p artm en t.
W illisto n
W. S. Davidson, Jr., president, A m er
ican State Bank, rep o rted to stockhold
ers th a t gains in savings totals as a
re su lt of th e new 4 per cent on oneyear certificates is n o thing sh o rt of
am azing, and is far above anticipated
gains. More th a n 150 new savings
custom ers w ere added in th e first 24
days of Jan u ary , and th e m oney came
p rin cipally from o ther financial in sti
tu tio n s w ith few additions to savings
being m ade by sw itching from check
ing accounts. It is indicated th a t the
area served by th e b an k is now cog
n izan t of th e differences in financial
in stitu tio n s, and savings funds are
seeking th e safety and convenience
offered by th e A m erican State Bank.
A trib u te w as paid to th e late W.
S. Davidson, Sr.
N ew Salem
E. C. C hristiansen, w ho has been
serv in g an in terim ap p o in tm en t as
d irecto r of th e S ecurity State Bank,
com pleting th e un ex p ired te rm of
Jo h n H. Hein, w ho recen tly m oved to
Oregon, has been elected a director of
th e bank.
P age
K en n eth DeKrey, Steele County ex
ten sio n agent th e p ast th ree and onehalf years, has been elected a ssistan t
cashier and m anager of th e F irs t State
B ank of P age’s statio n a t Page, suc
ceeding D ennis A. U nger, w ho has re
tire d because of ill health.
K olia
Dean Rockswold, a ssista n t cashier at
th e Litchfield S tate B ank, has begun
his duties as N o rth D akota b an k exam
in er and he has been succeeded at the
b ank by G ary Ju stesen .
J. H ow ard Storm an, attorney, has
been nam ed to th e board of th e F irs t
B ank of Rolla, succeeding his father,
Jo h n A. Storm an.
M andan
W alip eton
First National Bank
N orm an K. C h risten sen has been ad
vanced from a ssista n t vice p resid en t
and cashier to vice p resid en t and cash
ier and J. E. N oonan, ag re p re se n ta
tive, to a ssista n t cashier and ag re p
resentativ e.
Mandan Security Bank
A lb ert Lennick, a ssista n t cashier
Citizens First National Bank
E ldon Lum , a p a rtn e r in th e F arm
er-Globe, and Bob C aspers of V ertin ’sW ahpeton, have been nam ed directors
of th e b an k to succeed S. H. M urray
and Carl B raun, long-time directors,
w ho are retirin g .
Mr. M urray began a t th e ban k in
1907 as a bookkeeper, w as assistan t
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N orthw estern Banker. March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
76
ier, w as nam ed to fill the vacancy.
Mrs. Hobbs w as voted an ho n o rary
director.
M ontana
Cut Bank
N EW S
R. D. RUBIE
President
R. C. W ALLACE
Secretary
Havre
Helena
Ag C o n fe r e n c e
The 13th a n n u al A g ricu ltu ral C redit
C onference of th e M ontana B ankers
A ssociation w as conducted last m onth
in Bozeman.
Special coverage of th is im p o rtan t
m eeting w ill be featu red in th e A pril
issue. M uch of th e m aterial p resen ted
d u rin g th e conference w ill be featured.
B aker
Stockholders of th e B ank of B aker
voted to increase capital to $120,000
from $60,000 th ro u g h a tra n s fe r from
the su rp lu s account.
All officers and d irecto rs w ere re
elected.
B ig Sandy
R onald R. Bitz w as prom oted to
a ssistan t cashier a t th e an n u al m eet
ing of th e N o rth ern M ontana State
Bank. O ther officers and all d irectors
w ere re-elected.
B illin g s
First National
Don P. M ahoney w as elected an
a ssistan t cashier a t th e an n u al m eet
ing and w ill be w o rk ing in th e budget
loan departm en t. All o th er officers
and directo rs w ere re-elected.
In o th er new s Jam es F. Spelm an,
assistan t vice p resident, w as elected
p resident of th e B illings C ham ber of
Commerce. He is in charge of the
b a n k ’s public relatio n s and business
developm ent.
Midland National
H ow ard N. H e rb e rt w as nam ed vice
presid en t in addition to his p resen t
duties as tru s t officer, and Glen I.
W i l l i a m s w as
nam ed assista n t
tr u s t officer. All
o t h e r officers
w ere re-elected.
F ra n k G. Con
nelly and F ra n k
P. M ackey re tire d
from th e board of
directors. R alph
D. C unningham ,
Leslie J. FischH . N. H E R B E R T
bach and R obert
M ulvaney w ere elected directors. All
th ree new directo rs are B illings b u si
nessm en or stockm en.
Northw estern Banker, March, J962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
P aul A. W olk of W olk and Gage
accounting firm and Glacier In surance
A gency w as elected a new director
of th e B ank of G lacier County.
D e e r L od ge
Security Trust and Savings
S urplus has been increased $250,000
to $1.5 m illion, according to Oliver M.
Jorgenson, board chairm an. T otal as
sets a t th e end of th e y ear totaled
n early $52 m illion.
B ozem an
First National
K eith N elson w as prom oted to as
sistan t cashier. All o ther officers and
d irecto rs w ere re-elected.
Security Bank and Trust
R obert O. Sm ith, a ssistan t cashier,
w as prom oted to cashier and Ted
W itzel w as prom oted to a ssistan t cash
ier and a g ricu ltu ral rep resentative.
O ther officers and directors w ere re
elected.
B u tte
A t th e M etals B ank and T ru st Com
pany, T hom as M. E dw ards, vice p resi
d en t in charge of th e Time-pay de
p artm en t, w as prom oted to vice p resi
d en t in th e com m ercial departm ent.
G. V incent F ischer, a ssistan t vice
p resid en t and form erly a ssistan t m an
ager in th e Tim e-pay departm ent, w as
nam ed to succeed Mr. E dw ards as
head of th a t departm ent. H. Owen
Bush, a ssistan t cashier, succeeds Mr.
E d w ard s as a ssistan t m anager.
J e re B. Davis, w ho for th e past
five y ears has been livestock re p re
sentative, w as advanced from a ssist
a n t cashier to a ssistan t vice president.
R obert G. H en ry w as elected assistan t
cashier.
C olu m b ia F alls
J. G. E dm iston, c h a i r m a n , w as
elected p resid en t of th e B ank of Co
lum bia F alls at th e an n u al m eeting,
succeeding th e late E. J. M arantette.
R obert J. M arantette w as elected a
directo r to succeed his father.
All o th er officers and directors w ere
re-elected.
E kalala
S tockholders of th e F irs t N ational
B ank have voted to increase capital
stock to $75,000. Mrs. Belle E. Hobbs,
w ho has been a stockholder since the
mid-1920’s, announced a t th e an n u al
m eeting th a t she w as re tirin g as a
director. Dean P arks, assista n t cash
B u rt A ngstm an, w ork u n it conser
v atio n ist for th e U. S. Soil C onserva
tion office, has been nam ed agricul
tu ra l rep resen tativ e for th e Deer
Lodge B ank and T ru st Company. He
succeeds A lfred J. Donich w ho w as
advanced to assistan t vice president.
F ort B en ton
J. H. Moorse, cashier, w as prom oted
to vice p resid en t and cashier at the
an n u al m eeting of th e F irs t C houteau
County Bank. All o th er officers and
directors w ere re-elected.
H a m ilto n
V. C. H ollingsw orth, president, Cit
izens State Bank, has been nam ed a
m em ber of th e advisory council of the
N ational A ssociation of S tate Banks.
One m em ber is selected from each of
th e 12 FDIC districts.
H arlem
G erald W. McGee has been elected
a ssistan t vice p resid en t at th e S ecurity
S tate Bank. He fo rm erly w as assist
a n t cashier.
All o th er officers and directors w ere
re-elected.
G reat F alls
E. C. Joslyn, Jr., vice president,
F irs t W estside N ational, w as elected
presid en t of th e G reat F alls C learing
house A ssociation at the ann u al m eet
ing. He succeeds L. C. T errett, vice
president, F irs t N ational.
O ther new officers are H a rry Herm anson, cashier, G reat F alls N ational,
first vice president; V. E. H endershott,
president, M ontana Bank, second vice
president; C harles Rubie, president,
C entral B ank of M ontana, th ird vice
president, and Don Short, assistan t
cashier, F irs t N ational, secretary -trea
surer.
First National
B.
D. Collier, B. F. T illotson and
J. C. W ells w ere elected a ssistan t
cashiers a t th e F irs t N ational Bank.
Owen J. M urphy, president, Sletten
C onstruction Company, w as elected a
director.
Great Falls National
S tephen A. Birch, vice president, S.
MONTANA NEW S . . .
(T u rn to page 78, please)
77
M ontana N e w s
Montano
Employee
P H G r o Compiete#
Testiny
stu d y w as to provide objective criteria
F T E R some tw o y ears of w orking
and planning, th e public relatio n s to assist banks in selection of young
com m ittee of th e M ontana B an k ersm en and w om en w ho w ould ten d to
A ssociation soon w ill see th e com ple have qualifications sim ilar to th e
tion of one of its p e t projects. W o rk young b a n k ers in th e study.
B anks p articip atin g in th e study
ing w ith M. E. B rookhart, head of th e
testin g and counseling service of M on com pleted a sh o rt su rv ey of c u rre n t
ta n a S tate College, th e com m ittee has em ploym ent practices in th e bank.
developed a series of te sts to d e te r Y oung b an k ers selected to p articip ate
m ine th e p o ten tial of fu tu re em ploy filled out personal d ata questionnaires,
an d w ere given a series of ability, in
ees.
College g rad u ates w ill be evalu ated te re st and tem p eram en t analysis tests.
N am es of all persons and banks p a r
from th e re s u lt of te sts given and re
p o rts w ill be m ade to b a n k ers of th e ticip atin g in th e tests w ere know n
state. Also, job ap p lican ts w ill be only to th e ch airm an of th e public re
sen t to th e colleges of th e state to tak e lations com m ittee, L eroy O. W allin.
th e te st a t a n om inal fee to th e b a n k E ach b an k and p articip atin g individ
to d eterm in e if th e ap p lican t is fully u al w as assigned a code nu m b er for
tab u la tio n purposes.
su ited for th e b an k in g profession.
Mr. W allin, executive vice presid en t
In developing th e program , th e p u b
lic relatio n s com m ittee req u ested P ro of th e Big H orn C ounty State Bank,
fessor B ro o k h art to m ake a pilot stu d y H ardin, Mont., said, “W e th in k th a t
to assess th e abilities, in te re sts and som ething of real value w ill come of
tem p era m e n t of y oung b an k ers in th is p ro g ram and afte r it has been p u t
M ontana c u rre n tly being groom ed for to p ractice for a period of tim e, the
fu tu re m an ag em en t positions. In m ost M ontana association w ill gladly fu r
cases th e “young b a n k e rs” w ere u n n ish all details to o th er states. We
feel th is p rogram w ill produce a m ore
der 35 y ears of age. P u rpose of th e
A
PUBLIC RELATIONS c o m m itte e m em
b e rs a n d c o n s u lta n ts a re, fro m le f t, s e a t
ed : Leroy O. Wallin, exec, v.p., B ig H o rn
Co. S t. B k., H a rd in , a n d chm . o f th e com
m itte e ; M. E. Brookhart, h e ad , te s tin g
a n d c o u n se lin g se rv ice , M o n ta n a S ta te
C ollege; Dr. Grant R. Gaines, R o h re r,
H ib le r a n d R eplogle, S a n F ra n c is c o , a n d
James F. Nickerson, d ean , M o n ta n a S ta te
C ollege. S ta n d in g a re : Floyd C. Ham
ilton, p re s., F i r s t N a tl. P a r k B k., L iv in g
s to n ; C. P. Moore, v.p., G re a t F a lls N a tl.
B k .; Joe Bailey, p re s., U. S. N a tl. B k.,
R ed L o d g e, a n d E. B. Maynard, a.v.p.,
S e c u rity B k. & T r. Co., B illin g s.
sup erio r group of m en for th e banking
in d u stry .—End.
L au rel & C olu m b u s
E ddue B ert L euthold w as elected
a ssistan t cashier at Y ellowstone B anks
located in both these cities.
W ith offices o f our own in all 3 states, we can
and do s u p p ly p ro m p t, o n -th e -sp o t, o b j e c t i v e
inform ation and service in California, Oregon
and Washington.
SAN FRANCISCO and other California c itie s .. . PORTLAND, Oregon . . . SEATTLE and
THE BANK OF
CALIFORNIA
N A T I O N A L .
A S S O C I A T I O N
Member Federal
Deposit Insurance
Corporation
TACOMA, Washington • HEAD OFFICE: 400 CALIFORNIA STREET, SAN FRANCISCO 20
Northw estern Banker, M arch,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1962
78
Northwestern Bank
W arren H. W ill, vice president,
w as prom oted to executive vice p resi
dent and also w as elected a director.
Joseph B. P eterson w as elected assist
a n t cashier.
M O N TA NA NEW S . . .
H avre
(C ontinued from page 76)
B irch and Sons C o nstruction C om pany
and presid en t, S. B irch, Inc., w as
elected a new d irecto r a t th e an n u al
m eeting. All o th er d irecto rs w ere
re-elected.
A rth u r F. K ossberg, a ssista n t vice
president, w as prom oted to vice p re si
dent, and L ester R. Sage and R obert
E. Lee w ere nam ed a ssista n t cashiers.
A t th e F irs t N ational Bank, Theo
dore R. Lloyd w as prom oted from
a ssista n t cashier to a ssistan t vice
p resid en t and m anager of th e Timep ay d ep artm ent. R obert A. Conitz,
also assistan t cashier, w as prom oted
to cashier. S tu a rt P. E llison w as pro
m oted to a ssistan t cashier and ag ri
c u ltu ra l rep resen tativ e, and Jam es E.
Cowan w as prom oted to assistan t
cashier.
Oren R. Quill, form erly cashier, re
signed to accept a post as executive
vice p resid en t and d irector of the
F irs t S tate B ank of Paynesville, Minn.
A. E. Crum ley, vice president, has
been elected p resid en t of th e Toole
County State Bank, succeeding J.
H ugo A ronson w ho is retirin g . Mr.
C rum ley has been vice p resid en t since
1942 and has been in b anking m ore
th a n 20 years.
M issoula
S o m ers
Montana Bank
Show n h ere are C harles J. T hronson
and V ern E. H en d ersh o tt, ch airm an
and president, respectively. T heir
C. J. T H R O N S O N
V. E. H E N D E R S H O T T
election to these posts was announced
in the Northwestern Banker last
month.
All o th er officers and directors w ere
re-elected.
O. H. M ann, an a ssistan t tru s t offi
cer, w as elected vice p resid en t and
cashier in addition to his tru s t duties
and E. H. H eisel w as elected a ssistan t
cashier, a t th e W estern M ontana N a
tional Bank.
A lfred J. Term ell, p resid en t and
g eneral m anager of Turm ell-D eM arois
Com pany, w as added to th e board of
directors, b rin g in g m em bership to six.
S h e lb y
J. L. H ensley, a ssista n t vice p resi
d en t of th e C onrad N ational B ank in
K alispell p rio r to joining th e State
B ank of Som ers tw o y ears ago as ex
ecutive vice president, has purchased
the in te re sts of A llan Milne, p resi
dent, in th e bank. Mr. M ilne has
ow ned control of th e b an k since 1950.
No changes in personnel are planned.
S ta n fo rd
L ew isto n
First National
E a rl W. Johnson, cashier, w as
elected p resid en t of th e C entral Mon
ta n a C ham ber of Commerce.
Stockholders of th e B asin State
B ank voted to increase capital and
MONTANA NEWS . . .
(T u rn to page 81, please)
G ood service does not just happen.
It takes sound principles, progressive m anagem ent and staff m em bers who are
genuinely interested in their valued custom ers.
T hroughout the years, w e’ve tried to m ake our Correspondent Banking Service
a little better, a little m ore personal. We intend to keep on trying. Check with us.
“Y O U H A V E FR IE N D S A T T H E C E N T R A L ”
TH E
C E N T R A L.
e/\V
MK
AND
TR U ST
Central Park . . . 1 5th & A ra p a h o e . . . Denver 1 7, Colo.
M E M B E R : F E D E R A L DEPO SIT IN S U R A N C E CORPOR AT ION • F E D E R A L R E S E R V E S Y S T E M
No rthw e ste rn B anker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
CO.
79
< o l o r ; n l o - W
y o m
i n g
N
e w
s
A. E. FORDHAM, Gunnison
"resident
Colorado Bankers Assn.
A. E. KENDIG, Wheatland
President
Wyoming Bankers Assn.
A sp en
C onstru ctio n is to get u n d e r w ay
th is sprin g on a new b uilding for the
B ank of Aspen, according to W illiam
M. W hite, p resid en t. W. H. H ouston
C onstruction Com pany of Pueblo and
G rand Ju n c tio n w ill be th e co ntractor.
A ult
Leslie Clay has been elected to th e
board of d irecto rs of th e F a rm e rs N a
tional B ank, replacing Don Sivers
w ho has m oved from th e com m unity.
G uy S. C arleton has been nam ed
vice president, filling th e vacancy on
th e staff created by th e resig n atio n of
Mr. Sivers.
A u rora
Maj. Gen. Joseph C. Moffftt, Colo
rad o ’s a d ju ta n t general, h as been
elected to th e board of th e Peoples
B ank of A urora. G eneral Moffitt is a
n ative of th e A urora area.
B o u ld e r
Arapahoe National
R ichard J. Gross, vice president, has
been added to th e board of directors
an d elected executive vice president,
a new position in th e bank.
All o th er officers and d irecto rs w ere
re-elected.
First National
George D. W alden and L a rry G.
Stifffer w as elected a ssista n t cashiers,
and E v e re tt W illiam s of C entennial
M ortgage Com pany, w as added to th e
board of directors.
C harles A. D inw iddie, a ssista n t cash
ier, has been elected com ptroller and
w ill be in charge of all accounting
and auditing. D onald N. Sm ith, au d i
tor, becom es a ssista n t cash ier in
charge of lobby custom er services.
B ru sh
Alonzo P etteys, p resid en t, F a rm e rs
S tate B ank, has announced th e p ro
m otion of Jo h n J. H iggins from as
sista n t cashier to cashier, and th e
election of Jam es E. S au erb reit to
a ssista n t cashier. O ther officers w ere
re-elected.
C an non City
D irectors of the F irs t N ational B ank
have announced th e sem i-retirem ent
of Ira H. M itchener, vice presid en t in
th e loan departm ent, and th e ap p o in t
m en t of K eith L oterbour, form erly
au d ito r of th e U nited H om es B ank
and T ru s t Com pany of M ason City,
Iowa, to succeed him .
Mr. L o terbour w as associated w ith
th e M ason City b ank for seven years.
Mr. M itchener w ill rem ain w ith the
b an k on a part-tim e basis.
C olorad o S p rin gs
Central Colorado Bank
Noble A nderson w as appointed as
sista n t cashier and tru s t officer; Paul
K ahrs, auditor, and Leon C. Branson,
and G erald E. T russed, w ere nam ed
a ssista n t cashiers.
Colorado Springs National
H en ry LaC erte, Jr., form erly chief
of th e ag ricu ltu ral departm ent, has
been prom oted to assista n t cashier.
He h as been w ith the b an k seven
years.
If in n in y
.1 i i s
D enver
Central Bank & Trust Company
Roy L. Mason, p resid en t of C apital
C hevrolet Com pany of D enver and
president-elect of th e D enver Cham ber
of Commerce, has been elected direc
to r a t th e an n u al m eeting of th e bank.
All o ther officers and directors w ere
re-elected.
Center State
N orm an E. R arick and Miss P a tri
cia Connell have been elected officers.
Mr. R arick w as nam ed cashier. He
form erly w as a ssistan t cashier a t the
D enver U. S. N ational. Miss Connell
w as elected a ssistan t cashier. She has
been in th e b anking business in the
D enver area for th e p ast 10 years.
American National
T hom as S. Moore w as prom oted to
vice p r e s i d e n t
from
a ssistan t
vice
president.
H ow ard J. Sw en
son w a s nam ed
an assista n t tru s t
officer, and T hom
as J. M cVittie w as
nam ed a ssistan t
vice president.
M r.
Moore
joined
th
e
b a n k ’s
T. S. M O O R E
real estate loan
d ep artm en t in 1958, after eight y ears
w ith W estern F ederal Savings and
Loan A ssociation. He is a n ativ e of
Iowa.
Citizens Savings
Jam es K. G arrett w as prom oted to
vice presid en t from a ssista n t vice
president. George R. McGeorge w as
advanced to cashier and W. W ayne
Jackson w as m oved up to a ssistan t
cashier from m anager of the savings
departm ent.
Guaranty Bank & Trust
Jo h n R. W oods and Don B. T in k er
w ere advanced from a ssistan t cashiers
to a ssistan t vice presidents. R obert A.
W allace w as elected an assista n t cash
ier.
F ort C ollin s
THREE HONORS w e n t to th e F i r s t
N a tio n a l B a n k o f D e n v e r in th e
re c e n t T h ird A n n u a l N ik e A w ard s
o f th e A d v e rtis in g Club o f D e n v e r
fo r o u ts ta n d in g a d v e rtis in g d u rin g
1961. A first p lac e a w a rd w as p r e
s e n te d fo r tra d e jo u rn a l ad s, b la c k
a n d w h ite . A second p lace w a s r e
c eiv ed in th e c a te g o ry fo r ou td o o r,
th re e -d im e n sio n a l p a in te d b illb o a rd s,
a n d a t h ir d p lac e a w a rd cam e in
n e w sp a p e r ads, b la c k a n d w h ite , u n
d e r 1,000 lin es. A bove, Neil L. King,
le f t, discusses th e a w a rd w ith Robert
Hahn, M a rk S c h re ib e r A d v e rtis in g
A g e n cy , a c c o u n t e x e c u tiv e .
A t th e F irs t N ational Bank, H a rry
G. Lohr, vice president, w as prom oted
to senior vice president. J. Malcolm
T hrash er, cashier, w as nam ed vice
president. R obert J. F ran k , tru s t of
ficer, w as m ade a vice president. Tom
Gleason, a ssistan t vice president, w as
elected cashier. R oland M uhrer and
A1 Ju n g sm ey er w ere nam ed a ssistan t
cashiers. H arleigh H ow erton, an as
sistan t cashier, w as prom oted to m an
ager of th e personal loan departm ent.
P aul A. E. M iller w as nam ed a ssistan t
tru s t officer, and C. J. M eyer w as
nam ed controller, replacing R obert P.
G ardner w ho died last sum m er.
N o rthw estern Banker, M arch, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
80
M ontana
m en t officer, and Roy O. Schm idt, in president, w as elected p resid en t a t the
an n au l m eeting of the S ecurity S tate
T.
R. “R oss” Yowell has been nam ed th e in sta llm en t loan departm ent, w ere
by th e board of directors of th e Dove nam ed a ssistan t vice presidents. W il Bank. E. E. O’Connell, vice president,
liam J. M ilner, D onna L. S trait and w as nam ed executive vice president,
C reek State B ank to fill th e vacancy
H a rry A. P alm er w ere elected a ssist and Dan A. Sankey has joined th e
of executive vice p resid en t left by the
b an k as vice president. D ean H iler
resignatio n of J e r r y H avel, w ho has a n t cashiers.
w as prom oted to head teller.
tak en over operations of th e new b ank
M on trose
D irectors also voted to tra n sfe r
a t Moab, U tah.
H.
A. T hornton, vice president, w as $150,000 from undivided profits to su r
Mr. Yowell com es to Dove Creek
prom oted to executive vice presid en t plus. C apital and su rp lu s now total
from L as Vegas w h ere he m anaged a
b ran ch bank. P rio r to th a t he w as and w as elected to th e board of direc $850,000.
to rs of th e M ontrose N ational Bank.
executive vice p resid en t of th e F irs t
D. H. D eVinny, assista n t vice presi
N ational B ank in Cortez.
H f/o ffiffiff N e t v s
d en t and cashier, w as prom oted to
vice p resid en t and cashier.
B asin
E n g lew o o d
Del Crouse, president, Security State
W illiam F. Packard, m an ag er of the
Bank, announced recen tly th a t direc
in stallm e n t loan d ep artm en t, w as p ro L o velan d
A t th e F irs t N ational Bank, P hilip to rs have approved plans for an ex ten
m oted from a ssista n t vice p resid en t to
vice p resid en t a t th e F irs t N ational R. W alter, cashier, w as prom oted to sive rem odeling of th e bank. C ontract
Bank. Cletus A. Gasson, fo rm erly as vice p resid en t and cashier; Galen G. for th e w ork has been let and con
sista n t cashier, w as elected a ssista n t P ark s, a ssista n t vice president, w as stru ctio n began F e b ru a ry 17. P lans
vice president. He is m an ag er of th e prom oted to vice president, and Rob call for low ering of th e ceiling and in
stallation of new desks, counters and
loan and discount d ep artm en t. R ich e rt T. K inney, assista n t cashier, w as
carpeting.
ard M. K reu tzer w as elected a ssista n t elected a ssistan t vice president.
Ben H. Gregg, Jr., vice president,
cashier.
and Stan Selby, m anager of th e Love B u ffalo
land division of H ew lett-Packard, w ere
G old en
R obert L. F erril, form erly cashier,
C.
E. “E rn ie ” G ardner, vice p re si nam ed to th e board of directors.
w as elected vice p resid en t of th e W y
den t and tr u s t officer of th e M ountain
All o th er officers and directors w ere
om ing B ank and T ru st Company.
State B ank in D enver, has been elect re-elected.
Rilla Magill w as elected a ssistan t vice
ed p resid en t of th e F irs t N ational
president, and D onald P. K raen w as
B ank of Golden, succeeding P aul V. P u e b lo
nam ed cashier. F red W. H esse w as
F ir s t N ational
P attridg e, a foun d er of th e bank. Mr.
re-elected president.
Alex J. B erta w as prom oted to as
P attrid g e has been nam ed ch airm an of
sista n t vice p resid en t from a ssistan t
th e board.
C asper
Jo h n A. F o rtu n e , vice p resid en t and cashier and auditor. K enneth E. B aird
Donald K. Hogoboom has been elect
cashier, has been elected executive w as prom oted to assista n t vice p re si
ed p resid en t of th e S ecurity B ank &
vice presid en t. He succeeds K riss d en t from assista n t cashier. R obert T ru st Company. He succeeds W illiam
B arnes w ho resigned to becom e exec Gillespie w as prom oted to au d ito r and
N efsy w ho w as elected vice president.
utiv e vice p resid en t of th e P oudre Ja c k Boggess w as nam ed assistan t
Dan L. F erg u so n w as elected cashV alley N ational a t F o rt Collins. Mr. cashier. R obert W. Taylor, president,
T aylor F ence Company, w as elected
F o rtu n e w ill also serve as cashier and
to th e board.
a ssistan t tr u s t officer.
N ew ly elected vice p resid en ts are
M ilton V ander Stowe and W a rre n R.
S team b oat S p rin g s
H enson, fo rm erly a ssista n t cashiers.
Delano E. Scott, executive vice p res
W ayne O. T u ck er is a ssista n t cashier. id en t and cashier, has been elected
p re sid e n t of th e R o u tt C ounty N ation
al B ank to succeed C. H. A lexander,
G ranada
Jo h n L. Tice, Jr., has been elected w ho w as nam ed vice ch airm an of the
a d irecto r of th e A m erican S tate Bank. board. C. R ay M onson continues as
chairm an.
He replaces L. N. T hom pson and is an
D . K. H O G O B O O M
D . L. F E R G U S O N
assista n t cashier.
H ow ard E lliott, vice president, w as
elected senior vice p resid en t and w ill ier and secretary of the board. O ther
serve as th e senior loan officer. Dr. officers are E. D. F orem an, assistan t
L ak ew ood
Del Cooper has been elected p resi E. L. M orrow, one of th e original di cashier, and R ichard B. W ard, m an
d en t of th e R ocky M ountain B ank, recto rs of th e bank, w as nam ed vice ager, real estate departm ent.
H. P e te r Nagel w as elected ch air
succeeding Jam es H. Wood, w ho be president. Iria n Neas, assista n t vice
m an of th e board.
comes ch airm an of th e board. Mr. p resid en t w ho has been w ith th e b ank
Cooper fo rm erly w as executive vice since 1959, w as nam ed cashier. Jo h n
R. Sprengle, Jr., assista n t cashier, w as
president.
D o u g la s
elected a ssista n t vice p resid en t and
L. W. B ruegem an, cashier, w as pro
w ill serve as field rep resen tativ e. W il m oted to a ssista n t vice p resid en t at
G reeley
liam L uby is a ssistan t cashier and
P rom oted to vice p resid en ts a t th e
th e C onverse C ounty Bank. Irm a R.
G reeley N ational B ank are L a rry E. o perations officer.
Schlichting, assista n t cashier, w as
Scott, tr u s t officer; M arvin L. Nix,
elected a ssista n t vice president; V erl
m anager of th e in stallm en t loan de S terlin g
E pperly, a ssistan t cashier, w as prop artm en t, and Jo h n L. W eigand, farm
R. A. Towne, president, w as elected
m otedto cashier, and Don Cook w as
loan officer.
h o n o rary ch airm an of th e board, and
elected assista n t cashier.
H erm an E. Pearson, farm m anage Theodore D. Brow n, executive vice
O ther officers w ere re-elected.
D o v e C reek
N orthw estern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
81
Y
i
C h eyen n e
R obert S. M cCraken, p u blisher, W y
om ing S tate T ribune, and W yo m in g
E agle, w as elected to th e b oard of th e
C heyenne N ational Bank.
Roy C harles, Jo sep h D aly and R alph
Owen w ere elected a ssista n t cashiers.
All o th er officers and d irecto rs w ere
re-elected.
L aram ie
Ted A. E rn s t h as been elected a ssist
a n t cash ier a t th e F irs t N ational
Bank. He has been w o rk in g in th e
au d itin g d e p a rtm e n t as a ssista n t au d i
tor.
L u sk
A
L u sk State
B urke P etersen , fo rm erly a field re p
resen tativ e tim e-pay loan m an ag er for
th e M etals B ank and T ru s t Com pany
in B utte, Mont., has joined th e L usk
S tate Bank. He is to becom e an officer
in th e L u sk b an k in th e n e a r fu tu re.
Stockm ans N ational
All officers and d irecto rs w ere elect
ed a t th e an n u al m eeting. L inda L a r
sen, an em ployee of th e b an k since
1956, has resigned, effective F e b ru a ry
1. H er p lans for th e fu tu re are in
definite, re p o rts Max T. Bird, execu
tive vice p resident.
Y a n k to n
T o w n sen d
T he state b anking com m ission re
cen tly received an o th er application to
open a c h artered state b ank in Y ank
to n from a group rep resen ted by Jo h n
T. V ucurevich of R apid City. Offered
as a proposed nam e w as th e S ecurity
State B ank of Y ankton.
T he com m ission earlier received a
sim ilar appeal from E a rlin g Haugo,
re p re se n tin g a Sioux F alls group. T his
b an k w ould be called th e Y ankton
State B ank.
T h a t city cu rre n tly has tw o banks
in operation.
A t th e S tate B ank of T ow nsend
Floyd J. D eadm ond w as p rom oted to
cashier and Pheobe K earns w as ap
pointed to th e board of directors. Bill
K earns, a grad u ate of M ontana State
U niversity, has joined th e b ank staff.
M O N TA NA N E W S . . .
(C ontinued from page 78)
su rp lu s from $75,000 each to $100,000
each. Officers elected w ere N. B. M at
thew s, p resident; P a t K irby, vice p re s
id en t and cashier; M. Thom pson, vice
president, and H elen S. W illey, a ssist
a n t cashier.
V alier
C harles W. Rubie, president, Cen
tra l B ank of M ontana, G reat Falls,
has announced th e purchase of a m a
jo rity in te re st in th e F a rm e rs and
Stockm ens B ank of Valier. P urch ase
of th e stock w as m ade from Nels S.
Swanson, president.
N ew ly elected directors are E. T.
Sletten, ch airm an of th e C entral B ank
of M ontana; Nels S. Swanson, W allace
K ingsbury, E a rl R. Crawford, Jo h n E.
R oberts, E. A. Gosard and A. H. Habets. Mr. Sw anson rem ains as presi
dent.
M ORE SO U T H D A K O T A
_____________ NEW S_____________
V e r m illio n
Ai
V ernell H olter, fo rm er a ssista n t vice
presiden t, V erm illion b ra n c h of th e
N ational B ank of South D akota (Sioux
F alls), has been nam ed vice p resid en t
and m an ag er of th e b ranch, succeed
ing J. T. Sanger, w ho has retired .
W in n er
*
Two applications w ere filed recen tly
by tw o groups for b an k s in W inner.
One proposed a n atio n al bank, th e o th
er a state bank. The group p lan n in g
a state b an k w as successful and plans
are u n d erw ay for a “R oseville State
B an k ” w ith R aym ond M. W ollum , vice
p resid e n t of th e M erchants N ational
of W inona, Minn., as p re sid e n t and
m anager.
T he new state b a n k expects to be
in operation th is spring.
W o lse y
y
T he B ank of A lpena opened a Class
A b ran ch office w ith open house at
W olsey re c e n tly in a new , all-m odern
40 by 48 foot building,
R obert C. McKee, fo rm erly in th e
b an k a t K ennebec is m anager, and
E d n a P eterson, fo rm erly w ith th e
N o rth w est S ecurity N ational at H u
ron, is a ssista n t m anager.
T here w ere door prizes and coffee,
cookies and d o u g h n u ts w ere served
the large tu rn o u t.
N O R T H ,
THE
EAST,
FIRST'S
SAVES
TIME,
ITEMS
ARE
SEVEN
DAYS
SO U TH ,
W E S T . . .
FAST, A C C U R A T E
PREVENTS
RUSHED
ON
AND
NIGHTS
FIVE
SERVICE
DELAYS.
THEIR
YOUR
WAY
A WEEK.
T he First National B ank of Denver
Northw estern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
82
n
Participation takes cooperation
As with so many other activities in our lives, successful
banking service comes from working together to solve a
problem. For example — it takes the kind of teamwork we
offer through participation loans.
The U.S. National is geared to help you with all types
of participation loans. Whether your customers are in busi
ness, industrial, or agricultural activities, our financing
experts can help you in meeting their needs. Our partici
pation loan know-how serves as an extra “asset” for your
bank, and the speed with which we operate makes it even
more valuable. Many times we can handle transactions
by phone.
Call on U.S. whenever you need participation loan
service. All our correspondent facilities are yours for a
telephone call — 341-8765 — Omaha.
Member Federal Deposit Insurance Corporation.
N o rth w e ste rn Banker, March, 19t>2
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
t
i\
N
e b r a s k a
NEW S
B. D. BERKHEIMER
HARRIS V. OSTERBERG
President
Secretary
Gordon
Omaha
Nebraska
Grou
P ro g ra m s A nnouneed
R alph E. Misko, director of banking
ROGRAMS for th e 1962 N ebraska
G roup M eetings, have been a n for N ebraska, w ill discuss th e “R e
nounced by H a rris V. O sterberg, seccodification of State B anking L aw s” at
re ta ry of th e N ebraska B an k ers Asso all th e m eetings.
ciation. M eetings of G roups 2 and 3
The “U niform Com m ercial Code”
on M onday, A pril 23 in F re m o n t and w ill be discussed by atto rn ey s from
N orfolk, respectively, will s ta rt the v ario u s cities. A t G roups 1 and 3 it
week-long schedule of m eetings. The w ill be th e topic of R obert C. Guenzel,
final m eeting, G roup 4, w ill be con a tto rn e y from Lincoln. A rth u r C. Sidducted F riday, A pril 27, a t McCook.
ner, F re m o n t attorney, w ill discuss it
a t G roup 2. F re d T. H anson, McCook
atto rn ey , w ill explain th e subject at
G roups 4 and 5, and D aniel Stuffs, Al
liance attorney, w ill discuss it at
G roup 6.
A n additional featu re at th e Group
3 m eeting w ill be a look at th e “1962
A g ricu ltu ral O utlook” by F ran cis Kutish, a g ricu ltu ral extension econom ist
of Iow a State U niversity. Also on the
p ro g ram at th a t m eeting w ill be C. H.
W alcott, p resid en t of th e Iow a B ank
C. I. M O Y E R
R- E. M I S K O
ers A ssociation and president, Secur
G roup 1 w ill m eet A pril 24 in L in ity N ational Bank, Sioux City, Iowa,
coln. G roup 5 w ill conduct its m eet w ho w ill talk on th e W isconsin School
ing in K earn ey A pril 25, and G roup 6 of B anking.
w ill m eet T hursday, A pril 26, in A lli
All m eetings w ill be conducted d u r
ance.
ing th e afternoon and th e evening p ro
F e a tu re d topics a t each of th e m eet
gram w ill featu re a social hour begin
ings w ill he “You and S.B.A.”, “R e
n ing a t 5:30 w ith a b an q u et at 6:30.
codification of S tate B anking L aw s”,
G uest b an q u et speakers at th e m eet
and th e “U niform C om m ercial Code.”
ings are as follows:
R ep resen tativ es of th e Sm all B usi
Group 1—G. R obert G adberry, vice
ness A d m in istratio n in K ansas City
p
resid
en t and tru s t officer, The F o u rth
w ill p re se n t th e S.B.A. segm ent of th e
program . C. I. M oyer, regional direc N ational B ank & T ru st Company,
tor, w ill be a t m eetings of G roups 1, W ichita.
Group 2—Dr. H en ry Rodgers, w hose
2, 4, 5, and 6. C. D. B ohrer, a ssista n t
chief of th e F in an cial A ssistance D ivi topic w ill be “T ran quilizers—R esults
sion, w ill discuss th e S.B.A. a t G roup 3. and E ffects.”
P
H . R. K I L L I N G E R
Pr es . Gp. 1
K. A. T O O L
P r e s . Gp. 2
D. M . R O B E R T S
P r e s . Gp. 3
R. K. A R M S T R O N G
Pr es . Gp. 4
Group 3—R alph Olson of E llsw orth,
Iowa, w hose topic is “A F a rm e r Looks
a t In d ian A g riculture.”
Group 4—S. J. Sparks, w hose topic
is “L aughs I ’ve H ad on th e B ench.”
Group 5 — Dr. C harles K arsakoff,
w hose ta lk is en titled “Soon W e W ill
Buy Tickets to th e Moon.”
Group 6 — Sam uel J. R assm ussen,
w hose topic is “R ockets W ill R un the
U niverse.”
T here w ill be noon luncheons for
m en and w om en at th e m eetings of
G roups 1, 2, 3, 5 and 6. A t Group 4
th e ladies w ill be able to enjoy cards
and coffee all day and golf after 1 p.m.
An inform al “D utch T re a t” luncheon
w ill be available to all at th e Group
4 m eeting.—End.
H al C h ild s H ead s
In v estm en t B an kers
H al Childs of th e Chiles-Schutz &
Com pany inv estm en t firm in Omaha,
has been elected p resid en t of th e
N ebraska In v estm en t B ankers Asso
ciation.
O ther officers announced for th e
com ing y ear are: 1st vice president,
E li C. Eisele of Eisele, R aynor & F ish
er, Inc.; 2nd vice president, Jo h n J.
B ohrer of Chiles-Schutz & Company;
secretary, F ra n k V. L aw son of StorzW achob-Bender Company, and tre a s
u rer, Joe M. K adlecek of Sm ith, Polian & Company. P hil J. T ierney of
H arris, U pham & Com pany is th e
outgoing p resident and he w ill rem ain
on th e board of directors.
R alph A. R otnem , p a rtn e r of H arris,
U pham & Company, New York, spoke
to th e group on “The Stock M arket
and Its F u tu re .”
A llia n ce
The G uardian State B ank has nam ed
th ree new directors: E ugenia T. Ab
bott, R. E. B rickley and W illard
Lynch. The b an k has also increased
th e su rp lu s to $700,000 by adding $50,000. C apital is $500,000.
B e lle v u e
George E. H u m p h rey has been
elected an a ssistan t cashier of th e
B ank of Bellevue. Jo in in g th e b an k in
October, 1961, Mr. H u m p h rey is th e
in stallm en t loan officer for th e bank.
M . C. W O L D E N
P r e s . Gp. 5
H. L. M c K I B B I N
P r e s . Gp. 6
N o rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
84
N ebraska
New s
O s t e r b e r g •M oins S t u f f
11. II.
ILLIA M H. O STERBERG, 26,
joined th e staff of th e N ebraska
B ankers A ssociation as a ssista n t
re ta ry on F e b ru a ry 17. He is a n ative
N ebraskan, b o rn in Omaha.
He atten d ed high school in N orfolk,
N ebraska, and g rad u ated in 1953. He
atten d ed S o u t h er n M e t h o d i s t
U n iv ersity at Dal
las, Texas, and th e
U n iv ersity of W y
om ing a t L aram ie,
r e c e i v i n g his
B achelor of Sci
ence degree in
C i v i l E n g in e e r
ing from th e U ni
v e rsity of W yom
W . H. O S T E R B E R G
ing in 1957.
He is the son of H. V. O sterberg, sec
re ta ry of th e N ebraska B an k ers Asso
ciation.
Mr. O sterberg is a m em ber of th e
A lpha T au Omega fra te rn ity an d th e
A m erican Society of Civil E ngineers.
He has been em ployed by th e U.S.
A rm y Corps of E n g in eers p rio r to
joining th e N ebraska B ankers Associ
ation.
W
B ertran d
The B ank of B e rtra n d has elected
L angevin K ingsley to th e board of
directors to replace T heodore Sw an
son, retired .
C. G. H olthus, w ho has served as as
sistan t cashier for seven years, w as
prom oted to cashier, and Mrs. Don
N u tzm an w as elected as an a ssistan t
cashier. In o th er action, th e bank
sec
added $20,000 to surplus.
The b ank is p resen tly conducting a
rem odeling program . New fixtures and
p riv ate offices are to be installed. The
safe deposit lobby is to be enlarged,
along w ith th e accounting departm ent.
A t year-end, A. H. W alentine, exec
u tive vice president, w as presen ted a
w rist w atch for 32 y ears service.
B radshaw
The F irs t N ational B ank has in
creased its su rp lu s from $50,000 to
$60,000 and has sta rte d paying 4 per
cent on 12 m onth CDs; 3% per cent
on 6 m onth CDs, according to L. W.
F a rq u h a r, cashier.
C arleton
R obert L. W alker, atto rn e y at Gene
va, has been elected vice p resid en t
and director of th e C itizens S tate
B ank in Carleton. He replaces H. W.
Mills, retired.
B lair
The W ashington C ounty B ank has
announced th re e prom otions:
W ayne L am bertz, a ssistan t cashier,
has been nam ed cashier; D arrell F e r
guson has been nam ed a ssistan t vice
p resid en t and director, and Ted Stew
a rt has been advanced to a ssistan t
cashier.
B lo o m fie ld
Open house w as held at the newlyrem odeled F a rm e rs and M erchants
S tate B ank recently. A bout 1,000 peo
ple attended.
The new facilities consist of a con
crete and steel v a u lt w ith 600 safety
depisit boxes, a lobby, tw o p riv ate of
fices, tw o re st room s, a sm all k itch en
ette, p riv ate booths for th e patro n s
and a conference room. T his room w ill
be m ade available for sm all com m un
ity m eetings.
The b uilding is 105 by 25 feet, and
it w as co nstructed on th e site of the
form er b ank building. Jo h n R. Lauritzen, senior vice p resid en t of th e Pfirst
N ational Bank, Omaha, is president.
C olerid ge
T he Coleridge N ational B ank has
com m enced its 60th y ear of service,
hav in g been founded in 1902 by George
A. Gray.
C olu m b u s
Citizens Bank
The Citizens B ank and T ru st Com
p an y has announced the prom otions
of W illiam F. B ates from a ssistan t
cashier to a ssistan t vice president, and
Jam es S truebing to a ssistan t cashier.
Columbus Bank
M orris B. Cham bers, an FD IC ex
am iner, has joined th e C olum bus B ank
as cashier and director. P aul B rad
ley, form erly cashier, w as nam ed vice
president.
First National B & T
Ju lia n Meyer, cashier, has been p ro
m oted to vice p resid en t and cashier.
He w ill also continue to serve as an
assistan t tru s t officer. The ban k has
also announced th e prom otion of
George P rochaska to assista n t cashier.
C h ester
M unicipal and C orporate Bonds
L isted Stocks
U n listed and Local Stocks
ORDERS EXECUTED ON A LL PR INC IPA L EXCHANGES
G. D. Van Cleef has been prom oted
from executive vice p resid en t to p re s
ident of th e State B ank of C hester.
R ay Peake has been elected chairm an.
The b an k has also prom oted H arold
R. P o rte r from assistan t cashier to
vice president, and increased surplus
to $35,000. C apital is also $35,000.
G rand Isla n d
CHILES-SCHUTZ CO.
OM AHA , N E B R A SK A
412 F arm C re d it B uild in g
P hone 346-6677
L IN C O L N , N EB R A SK A
1321 P Street
P hone H E m lock 2-3324
L E X IN G T O N , N E B R A S K A
E rn st & B ieck B uilding
C H A D R O N , N E B R A SK A
999 E ast 6th Street
Stockholders have been advised th a t
plan n in g is being com pleted for the
new b ank building, and it is th e hope
of the building com m ittee th a t con
stru ctio n can s ta rt th is sum m er.
The b ank nam ed Leslie Belford,
vice president, to th e board of direc
tors at th e an n u al m eeting, according
to W. W. M arshall, Jr., executive vice
president.
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS
F. E. DAVENPORT & CO.
OMAHA
N o rth w e ste rn Banker, M arch, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
85
YOU K N O W CARL BLO O M
\
C arl got his b an k in g s ta r t w ith his fa th e r in a b an k in
Iow a. T h en he sp e n t a n u m b er of years as an Iow a S ta te
A uditor. A nd th e n he joined th e F irs t N atio n al. H e ’s been
w ith u s seventeen y e a rs .. . a n d h e ’s s p e n t all of th e m
c a llin g on all of you. H e ’s a n o th e r reason w hy we say
our k in d of b an k in g is person-to-person . . . m an-to-m an.
FIRST NATIONAL RANK OF Oil til t
16TH & FARNAM
■
OMAHA, N EB R A S K A
■
M EM BER F ED E R A L D E P O S IT
IN SU R A N C E CO R PO R ATIO N
No rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
86
O m aha N e w s
COLD W ar S trateg y Sem inar has
A dditional speakers w ill be an
been announced by the Omaha nounced.
C ham ber of Com m erce for A p ril 6 and
* * *
7 at Jo sly n M emorial.
Ames Plaza Bank
F o u rte e n m em bers of n atio n al re p
A pproval for th e new b ank at 60th
u tatio n w ill be featured. Kermit Han
S treet and Ames A venue in the Ames
sen, general ch airm an of the sem inar
Plaza Shopping C enter w as received
and vice p resid en t of th e U nited States
recently from the
N ational Bank, announced th a t Sena
F e d e r a l Deposit
tor Strom Thurmond (Dem., S. C.) w ill
In su ran ce Corpo
speak A pril 7 at noon, and Congress
ration.
man Walter Judd (R., M inn.) w ill
Edwin E. Brodclose th e sem inar a t 8 p.m. Saturday,
key, w h o h e a d s
A pril 7.
th e group of in
corporators, s a i d
The sem in ar w ill open F riday, A pril
co nstruction is to
6. T hree of th e first-day speak ers w ill
begin a t once and
be Dr. Gerhart Niemeyer, professor in
that the new
th e political science d ep artm en t a t the
b an k w ill open in
H. S U N D E R M A N
U n iv ersity of N otre Dame; Lew is F.
late spring. It also
Powell, a tto rn e y a t R ichm ond, Va.,
rep o rted th a t Howard Sunderman,
and ch airm an of th e A m erican B ar
vice president, Citizens State Bank,
A ssociation com m ittee on E ducation
C larinda, Iowa, has joined the new
in th e C ontrast B etw een L ib erty U n
bank.
der L aw and Commission, and D r.
* * *
Charles Lowry, president, F o undation
Douglas County Bank
for Religious A ction in th e Social and
Civil O rder of W ashington, D. C., and
E stab lish m en t of a tru s t d ep artm en t
an E piscopalian rector.
has been announced by K. G. Harvey,
A
\
>ir S o u t h w e s t O m a h a B a n k
0
president. A pproval has been received
from th e state banking departm ent.
* =t= *
First National Bank
Don R. Ostrand, vice president, has
been elected to th e board of th e Oma
ha H earing School. H e recen tly head
ed th e school’s an n u al fund raising
cam paign.
* * *
First W est Side
J. A. Irving, executive vice p resident
and cashier since th e b an k opened in
1955, has been elected presid en t and
cashier. He succeeds Stanley Bednar,
w ho also is executive vice p resid en t
of the W ashington C ounty B ank in
Blair. Mr. B edner w ill re ta in th e
B lair post.
Paul M. Pederson w as prom oted
from a ssistan t vice presid en t to vice
president, and W. E. Jahde, form erly
a ssistan t cashier, w as elected assistan t
vice p resid en t and director. James
Doody w as nam ed an officer.
* * *
North Side Bank
L. Dale Matthews, president, and
his wife recen tly vacationed in T uc
son, Ariz., and w hile th ere attended
th e w edding of th e ir son, R obert, w ho
is em ployed w ith th e B ank of Arizona.
* * *
Omaha National
The 15th an n u al George W ashington
Club p a rty w as held last m onth u n d er
th e sponsorship of th e Om aha N a
tional. The b an k established th e club
as a m eans of honoring children who
display qualities of h onesty and inte g rity w hich m ake good citizens.
M em bership consists of boys and
girls up to and including 14 y ears of
age w ho have found a purse or bill
fold containing m oney and have re
tu rn e d it to th e ow ner or to some re
sponsible citizen. The club now has
over 300 active m em bers. A total of
585 o ther m em bers have reached th e
age of 15, and are no longer eligible
for active m em bership.
* * *
South Omaha Bank
Stan Vala w as prom oted to assistan t
vice presid en t from assistan t cashier,
and Richard Harmon w as elected as
sista n t cashier. Mr. Vala continues to
head th e in stallm en t loan departm ent.
Mr. H arm on form erly served as an as
sista n t in th e installm en t loan d ep art
m ent.
ACORN
IN T E R IO R of th e n e w S o u th w e st B a n k o f O m aha. T he n ew b a n k o pened on D e cem b er
4, 1961. A s o f J a n u a r y 26, d e p o sits to ta le d $1,598,147. O pen house w a s h e ld la te in
J a n u a ry . Officers a re : W illia m A. F ra s e r, J r., p re s.; P e r r y S. F ra n c is , exec, v.p., a n d
E u g e n e J . Z aloudek, a.v.p. & cash. T he b a n k is lo c a te d in th e L o v e la n d S ho p p in g
C e n te r a t 90th a n d C e n te r S tre e ts.
N o rth w e ste rn Banker, March, 7962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Registers
"Accepted Sale Registers by Bank
Clerks Everywhere"
For i n f o r m a t i o n w r i t e
THE ACORN PRINTING CO.
O akland, Iow a
^
A
»
lr
y
H
V
A
>-
a
t
H. D. S h,eilenberg er, Jr. and H. H. Echtermeyer
They work for you . . .
The men of the Omaha National Bank’s Correspondent Bank Division
devote most of their time to your banking problems. Working bankerwith-banker it becomes a pretty close relationship over the years. Most
of our customers might not always remember the right initials—it’s so
much more natural to call them “Shelly” or “Herb”.
T h e
O m a h a
1 7 th a n d Fa r n a m S t r e e t s
N
a t i o n a l
B a n k
Member Federal Deposit Insurance Corporation
N o rth w e ste rn Banker. March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
88
N ebraska N ew s
L E F T — Charles S. Reed, p res., B a n k o f B e lle v u e ; B. D. Berkheimer, N B A p res, a n d p res., F i r s t N a tio n a l, G ordon, a n d Roman
L. Hruska, U. S. S e n a to r fro m N e b ra s k a . C E N T E R — L. J. Titus,
pres., F i r s t N a tio n a l, H o ld re g e ;
fro m N e b ra s k a , a n d Lyman M.
L e x in g to n S ta te . R IG H T — Erie
Mr. Stuckey.
Carl T. Curtis, TJ. S. S e n a to r
Stuckey, N B A v.p. a n d pres.,
Cocke, Sr., chm n. of F D IC , an d
X
4 0 \<>hrasktuts V is it W a s h i n g t o n
B y BEN H ALLER, JR.
E d ito r
EBRASKA b an k ers can be p roud
indeed of th e com petent, force
ful m an n er in w hich th e ir in te r
ests w ere rep re se n te d last m o n th
w hen a 40-man delegation of th e ir
fellow b an k ers from th e C ornhusker
S tate trav eled to th e n a tio n ’s capitol
for personal v isits w ith th e ir U. S.
Senators and R epresentatives, as well
as w ith each of th e federal b an k su
perv iso ry agencies.
H eaded by NBA P resid en t B. D.
B erkheim er, NBA Vice P resid en t L y
m an Stuckey and NBA S ecretary
H arris V. O sterberg, the N ebraska
b an k group w as acclaim ed as th e
larg est state b an k ers association dele
gation th a t has visited W ashington,
D. C., for th is purpose.
The effectiveness of th e ir num b ers
w as fu rth e r enhanced w hen it w as
noted th a t th e y rep resen ted 35 banks
from all p a rts of th e state, and th a t
th e y included th e p resid en ts of G roups
1, 2, 3 and 6, five p ast state p resid en ts
of th e NBA, tw o state senators, th e
state b an k in g com m issioner and a
form er G overnor of N ebraska.
Tax Equality Discussed
The m ost im p o rta n t m a tte r dis
cussed w ith elected officials and su
perv iso ry a u th o ritie s in W ashington
N
L E F T — Glenn
w as th e pressing need for tax equality
am ong lending in stitu tio n s. The case
for such equality w as presen ted ably
by th e N ebraskans to th e ir Senators
an d R epresentatives.
A no th er m a tte r receiving consider
able a tte n tio n w as th e increased sav
ings rate, and in th is instance, the
v isito rs found W ashington su p erv i
sory a u th o rities keenly in terested in
how th e increase is affecting savings,
w h a t b an k ers feel about it and the
reactions of th e public to th is move.
A fter arriv in g in W ashington on
M onday m orning, F e b ru a ry 19, by
special P ullm an cars, th e group w ent
im m ediately to th e offices of the
A m erican B ankers A ssociation for a
briefing on c u rre n t legislative m atters
of in te re st to banks. It w as pointed
out by C harles McNeill, director of
th e W ashington office, th a t the tax
eq u ality bill c u rre n tly u n d er consid
eratio n by th e H ouse W ays and M eans
C om m ittee not only em braces th e
m easure desired by com m ercial banks
for eq u ality in tax atio n of S & L ’s and
m u tu al savings banks, b u t also con
tain s a provision for w ithholding by
banks, S & L ’s, and corporations on
in te re st or dividends paid by them .
If th e bill as draw n goes th ro u g h this
Cunningham, 2nd D is tr ic t C o n g re ssm a n ; Herb
Echtermeyer, v.p., T he O m aha N a tio n a l; Harold E. Roe, pres.,
B a n k of B e n n in g to n ; Adolph Hallas, pres., S to c k Y a rd s N a
tio n a l, O m aha, a n d Dean Vogel, exec, v.p., U. S. N a tio n a l,
N o rthw estern Banker, March, J962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
com m ittee to th e floor of the House,
it w ill have a fairly good chance of
passing. No am endm ents to the bill
m ay be m ade u n d er p resen t rules.
May Amend in Senate
W hen th e bill reaches th e Senate it
m ay th e n be am ended, b ut should the
am ended bill be passed it w ould th en
have to be approved by the House
th ro u g h a jo in t com m ittee. It w ill
only be in th e Senate, for all practical
purposes, th a t th e p resen t tax equal
ity m easure m ay be am ended in any
effort to delete th e undesirable w ithholding feature.
I t w as fu rth e r pointed out by Mr.
McNeill th a t if a cutoff on w ithhold
ing on dividends or in te re st w ould be
established to elim inate am ounts of
$16 or less, th a t th is w ould elim inate
tw o-thirds of th e savings accounts
w hile reducing to tal rev enue from
such w ithholding by only 5 percent.
A poll of th e N ebraska delegation
show ed unanim ous su p p o rt of the
ABA’s position th a t th e p resen t bill
should be su pported th ro u g h the
House, w ith la te r am endm ents pos
sibly being offered in th e Senate.
It w as announced ABA needs about
a 20 percen t increase in budget due to
stepped up activ ity and w ill ask for
O m aha. R IG H T — H. R. Killinger, exec, v.p., T h a y e r C ounty
B a n k , H e b ro n ; Victor E. Anderson, p res., H a v e lo c k N a tio n a l,
L in c o ln ; Mrs. Phil Weaver; Phil Weaver, 1 st D is tr ic t C ongress
m an, a n d Myron Weil, v.p., N a tl. B k. of C om m erce, L in co ln .
h
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89
Ready to Serve and Advise You
NBC MORTGAGE LOAN DEPARTMENT
E. N. THOMPSON
Senior Vice President
L. E. ALFORD
Vice President
W. LAURENCE SM ITH
Consultant
GEORGE W. SHREWSBURY
Asst. Vice President
National Bank of Commerce Trust and
Savings welcomes the opportunity of
serving and advising you on financial
arrangements for residential, commer
cial and industrial property loans. Stop
in, write or give us a call.
GUY HOLLIDAY
Loan Representative
Mortgage Loan Department
NATIONAL
B A N K of
COMMERCE
TR U ST & SAVINGS
L IN C O L N , N E B R A S K A
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
90
Nebraska News
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Y
L E F T — Ralph Beerman, 3rd D is tric t C o n g ressm an (s e a te d ), w ith
B. M. DeLay, p res., D e L ay F i r s t N a tio n a l, N o rfo lk ; E. M. Black,
pres., F i r s t N a tio n a l, F u l l e r t o n ; H. L. Gerhart, p res., F i r s t N a
tio n a l, N ew m an G rove, a n d N. T. Tiemann, pres., C om m ercial
S ta te , W au sa. C E N T E R — H. L. McKibbin, p res., F i r s t N a tio n a l,
a change from dues based on deposits
to dues based on to tal resources. Ne
brask a alread y operates on th is basis.
O th er B ills
O ther bills discussed w ere th e Doug
las “T ru th in L ending B ill” w hich is
opposed by ABA, H R 7796 dealing
w ith real estate m ortgages, H R 8874
w hich w ould p erm it tw o or m ore
banks to own stock in a service cor
poration, and a bill introduced last
session req u irin g all b anks to join th e
Fed.
S2528 and H R 9122 are identical
bills. T his is a b i-partisan proposal
to establish federal m u tu al savings
banks, u n d er supervision of th e F e d
B a y a rd ; J. V, Johnson, p res., Jo h n so n C o u n ty B a n k , T ecum seh,
a n d Floyd J. Patton, p res., B lue S p rin g s S ta te , re fle cte d th e
m ood o f th e crow d as th e g ro u p lis te n e d to Osce W. Johnson
( r ig h t) , p res., B a n k of B u rw e ll, re c ite “ T he S h o o tin g o f D an
M cG rew ” w ith o u t a slip.
eral Home Loan B ank Board, w ith
deposits insured u n d er th e FDIC.
T hese b anks could b ran ch in states
w h ere p erm itted to do so u n d er S & L
or b an k laws, and w ould p erm it a
federal or state S & L to convert to a
federal m u tu al savings bank. The
ABA m ain tain s such a m easure is not
fair in m any states and ap p aren tly
S & L ’s also oppose th e m easure.
F ollow ing th is briefing th e NBA
group w ere luncheon guests of the
N ational A ssociation of S upervisors of
State Banks.
P erso n al Calls
M onday afternoon w as spent in
calling on the N ebraska C ongres
sional delegation in sm all groups. This
w as also done th ro u g h o u t the day on
Tuesday. M any b an k ers had an op
p o rtu n ity to w atch sessions of both
the H ouse and Senate, as w ell as sit
in on a h earin g before the H ouse
A g ricu ltu ral Com m ittee, w here A gri
cu ltu re S ecretary Orville F reem an
w as testify in g on his new farm plan.
N ebraska C ongressm an R alph Beerm an is a m em ber of th is com m ittee,
devoting a m ajor share of his tim e to
th is w ork.
FD IC Luncheon
The chairm an and o th er officials of
NEBRASKA T R IP . . .
(T u rn to page 96, please)
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L E F T - Dave Martin, 4 th D is tr ic t C o n g re ssm a n ; C. H. Hosier,
pres., F u lle rto n N a tio n a l; T. T. Varney, Jr., pres., B ro k e n Bow
S ta te , a n d H. D. Kosman, p res., S c o ttsb lu ff N a tio n a l. R IG H T —
H. W. Hendriksen, v.p., F i r s t N a tio n a l, F re m o n t; Walter E,
Nolte, exec, v.p., F i r s t C o n tin e n ta l N a tio n a l B&T. L in c o ln ;
James J. Saxon, C o m p tro ller, a n d Chapman C.Fleming, d e p u ty .
i
y
1
L E F T — Chas. T. O’Neill, a sst. geni, counsel; Chas. R. McNeill,
d ir. o f W a s h in g to n office, a n d J. O. Brott. geni, counsel, a ll w ith
A B A in W a s h in g to n ; B. D. Berkheimer, N B A pres, a n d pres.,
Northw estern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
F i r s t N a tio n a l, G ordon, a n d H. V. Osterberg, secy, of N B A ,
O m aha. R IG H T — Ralph Misko, N e b ra s k a d ire c to r of b a n k in g ,
w ith Hollis W. Burt, exec, v.p., N .A .S.S.B .
91
NEW ADVANCE
in correspondent bank services!
City National’s new Electronic Data Processing
Center will soon offer overnight demand deposit
accounting and account-related information
services to correspondent banks in its immediate
trade area! The first Kansas City bank to make
these services available!
masters in the “ modern art” of serving you!
CITY NATIONAL BANK
A N D T R U S T C O M P A N Y OF K A N S A S C I T Y , MI S S O U R I
Tenth
and
Grand
•
Kansas
City
41,
Missouri
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
92
First Continental
p an y of Omaha, and p rio r to th a t w as
ULIUS RIET) has been elected as a senior an aly st w ith In v esto rs D iver
sista n t cash ier of th e proof and sified Services, Inc., of M inneapolis.
* * *
tra n s it departm en t. Paul Munson of
installm en t loans w as prom oted from
National Bank of Commerce
a ssistan t cashier to a ssista n t vice p re s
L. Paul Fowler, field rep resen tativ e
ident. In th e tr u s t d ep artm en t, Bob for th e N ational B ank of Commerce
Kahm w as prom oted from a ssista n t in H oldrege, has announced his re tire
tru s t officer to tr u s t officer, and Dave m ent. Mr. F ow ler is m oving to Oma
Schomburg w as prom oted to tr u s t offi ha w here he w ill e n te r p riv ate bu si
cer and farm d irecto r from a ssista n t ness for him self. H e has been a field
tru s t officer and farm director.
re p re se n tativ e for th e b an k and its
* * =t=
predecessor, th e F irs t T ru st Company,
First Nebraska Securities
in H oldrege for 27 years. He is being
Arthur W. Coffland has been ap replaced by Dennis Choquette, a farm
pointed d irecto r of research. He fo r er in th e U pland area and a g raduate
m erly w as su p erv iso r of financial re of th e U niv ersity of N ebraska college
search for N o rth e rn N atu ral Gas Com- of agriculture.-—End.
J
L in coln B a n k s L e a d th e D r i v e . . .
“Have an Edge”
“A tow n th a t doesn’t get busy to
fu rn ish em ploym ent for its people is
going to lose out. A tow n w ith an
in d u strial site is going to have the
edge . . . and our location is ideal. We
are sure it w ill be a b eau tifu l addition
to Lincoln.
“Our tw o large banks are w orking
to g eth er on th is ‘In d u stria l P a rk ’ p ro j
ect as we see it as a great o p p o rtu n ity
for Lincoln. All businesses in Lincoln
w ill have th e o p p o rtu n ity to grow and
V
develop w hen th e p a rk is a reality.
“Several N ebraska com m unities are
doing an excellent job a ttra c tin g in
d u stry and building th e ir com m unities.
A m ong them are Colum bus, Cozad,
Crete, N ebraska City and K earney, to
nam e only a few .”
Mr. T hom pson said, “The people at
th e N ational B ank of Commerce are
>p a rticu larly glad to m ake one of th e
largest co n tributions to th e develop
m ent of th is park.
“Well-Planned Project”
“T his is N eb rask a’s first and only
full-fledged In d u stria l P ark, w hich w ill
be fully planned and landscaped by
one of th e o u tstan d in g professional
firm s in th is field.
“L incoln’s business com m unity is
show ing e x trao rd in arily fine su p p o rt
for th is project w hich w ill place our
city in th e forefro n t of N eb rask a’s
drive for in d u strial developm ent.”
The zoned and highly-restricted in
d u strial “hom e site” area consists of
308 acres at th e corner of 14th and
N ebraska H ighw ay 2, bounded on th e
east by 20th S treet and on th e south
by the Rock Island R ailroad. G round
is to be b roken early th is Spring and
co n struction and site developm ent is
to follow im m ediately. I t is u n d er
stood th a t th e first in d u stry is ready
to b reak ground as soon as th e site
developm ent is completed.
yI
'*#n d n s t r i t i l P a r k ' ' — A P r o j e c t
F o r F u t n r e -A t in d e d H anks
NDUSTRY is m oving to th e suburbs.
As the tre n d co ntinues to develop,
no longer w ill to u rists e n te r a city and
see row s of d irty factories w ith tall
stacks belching fo rth d irty, ey e-irritat
ing (literally and figuratively) smoke.
Instead, th e y w ill see w h a t app ears to
be w ell-planned resid en tial areas w ith
fine stre e ts and clean n eat buildings—
the difference being th a t th e buildings
w ill be larg er th a n hom es as th e y are
m odern factories.
E nthusiastic Support
Two b anks in Lincoln, N ebraska—
The F irs t C ontinental N ational B ank
& T ru s t and th e N ational B ank of
1
C. W . B A T T E Y
E. N. T H O M P S O N
N o rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Com m erce T ru st and Savings — have
studied th e beginnings of the “In d u s
tria l P a rk ” idea and w holeheartedly
back such a p lan for Lincoln. N ot only
are th e y lending th e e n tire in itial o u t
lay—$700,000 for 5 y ears at 5 per cent
-—b u t also th ey are leading th e drive
for developm ent of th e park. Lincoln
b usinessm en and o th er farsighted citi
zens of th e com m unity also are pledg
Project for Banks
ing th e ir financial support.
Calling
th is a profitable in v estm en t
The b anks are pledging 20 per cent
of th e quotas set up for th e city’s for banks in a com m unity, plan n ers
of th e Lincoln In d u stria l P a rk predict
business people.
C. W heaton B attey, ch airm an of the these advantages: More payroll dollars,
board of th e F irs t C ontinental, and E. m ore spendable income, m ore custom
N. “J a c k ” Thom pson, senior vice p resi ers, clients and p atients, m ore p u r
d ent of th e N ational B ank of Com chasing pow er for all business, m ore
o p p o rtu n ity for th e continued financial
m erce, are team captains, rep resen tin g
success of all business and m ore di
th e ir b anks du rin g th e drive for funds.
Successful com pletion of th e drive is, versified em ploym ent o p p o rtunities for
all.
at th is tim e, assured.
“T his is a real in v estm en t in th e fu
Jam es F. G arvin, a ssistan t general
tu re of L incoln,” said Mr. B attey d u r m anager and in d u stria l developm ent
ing a re cen t N orthw estern B anker director, Lincoln C ham ber of Com
interview , “and it is ap p a re n t to all m erce, is handling th e prom otion of
th a t we m u st have a plot of ground th e p roject and states th is doubleread y for in d u stry so th ey w ill settle
m eaning phrase, “Lincoln M eans B usi
here.
ness!”—End.
h'
il
93
FIRST CONTINENTAL
IN A T
I O IN A I .
I 2 T H
&
N
15 A i \ K
S T R E E T
&
L
I
T H U S
N
C
O
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N
T
,
C O M I» A N Y
N
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B
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A
S
K
A
"banker-on-the-job” for you
W I L L I A M C. S M I T H
Bill Smith, with First Continental for seven years,
finds his comprehensive Nebraska University economics
background invaluable. Buying and selling government and
municipal bonds for the bank, Bill also reviews
correspondent bank portfolios, suggesting to correspondents
ways to earn more money with governments.
Out of the office, it’s the great outdoors for Bill —
golf, fishing, especially skeet-shooting.
Last July Bill and his wife Linda moved into their new home,
which they blueprinted themselves. Now there are two new stars
in the Smith household-daughter Kristi Jo and, of course,
Bill's golden retriever Rusty.
N o rthw estern Banker, M arch, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
94
N ebraska N ew s
A t N a tio n a l B an k o f C o m m e r c e . . .
6 0 0 H ear B an k P ro fit T ips
By WALTER T. PROCTOR
A sso cia te E d ito r
F F IC E R S of th e N ational B ank
of Com m erce of Lincoln, Neb.,
e n te rta in e d m ore th a n 600 of
th e b a n k ’s corresp o n d en ts and w ives
last m o n th w ith several inform ative
business sessions and equally in te r
esting social events.
All of th e talks, discussions and a
panel m eeting w ere focused g enerally
on how b an k ers can derive m ore p ro f
its from banking. Social h ig h lig h ts
included “Mr. R o b erts” at th e Lincoln
C om m unity Playhouse; a social hour,
d in n er and e n te rta in m e n t a t th e L e
gionnaire Club; an evening at th e “Ice
Capades” and o th er social hours,
b reak fast and luncheons.
O
Trust Men Speak
A tru s t b reak fast featu red m em bers
of th e b a n k s’ tr u s t d e p a rtm e n t . . . and
dispensing valuable inform ation were:
Jo h n C. W h itten , Sr., vice p resid en t
and tru s t officer; O. L. Clarke, Jr., vice
p resid en t and tr u s t officer; E. N.
Thom pson, senior vice president, and
Jo h n E. W ilson, tr u s t officer, all of the
host bank.
B eryl W. Sprinkel, vice p resid en t
and econom ist at th e H a rris T ru s t and
Savings, Chicago, in his “Prospects
for B usiness and B anking,” predicted
a good y e a r ahead and said, “T his
could re su lt in one of our b est n o n
w ar y ea rs.”
Mr. S prinkel also expects an in
crease in consum er spending, in d u s
tria l spending (up 11 to 12 per cent)
D uring th eir discussions of deposit
developm ent, incom e creation and ex
pense control, v arious v isitin g Ne
brask a b an k ers w ere called upon to
explain how th ey w ere doing a profit
able job w ith a certain phase of th eir
b an king o p e r a t i o n s . These w ere
C harles F isher, cashier, The B ank of
Kim ball, w ho had conducted a m ark et
analysis in his area; Jo h n W. Cattle,
president, C attle N ational Bank, Sew
ard, w ho has a program to help
y o u n gsters learn how to be profitable
cattle feeders; C. H. H osier, president,
F u lle rto n N ational Bank, w ho dis
cussed several com m unity projects the
b ank has sponsored; E. K. Y anney,
cashier, F irs t State Bank, Lodgepole,
w hose b ank has developed a profitable
phase of in stallm en t credit on autom o
biles, and E d Coblentz, vice president,
F a rm e rs State Bank, A urora, whose
b an k helped farm ers of th e area afford
new wells, new b arn s and a stronger
in te re st in cattle feeding.
M em bers of th e panel wove th e ir
talk s around th e com m ents of the
guest ban k ers w ho had been called
upon.
and a decrease in unem ploym ent by
n e a rly 25 per cent.
Farm Gains Reported
“T im ely Topics” featu red a farm dis
cussion by experts, m oderated by Winto n B uckley, a ssista n t cashier and ag
rep resen tativ e. Dr. J. O. Young, ch air
m an, d ep artm en t of h o rticu ltu re and
forestry, U n iversity of N ebraska; Jim
Lem ley, program specialist, storage
m anagem ent, N ebraska S tate A.S.C.S.
Office, and H ugh “S cotty” M actier,
president, Om aha L ivestock E xchange,
and m em ber, M actier Bros. Commis
sion Com pany, rep orted state gains in
th e areas of vegetables, grain and
livestock, respectively.
H erm an A. B rockm eier, senior vice
president, N ational B ank of Com
m erce, discussed “E m ergency Record
S torage,” and Dr. Carl S. W inters,
lectu re staff, G eneral M otors C orpora
Additional Coverage
tion, inspired th e b an k ers w ith his
A
m
ore
com plete com pilation of the
lectu re “The B an k ers’ Glory Road.”
com m ents from th is inform ative dis
Bank Profit Tips
“B ank P ro fitab ility ” w as th e a fte r cussion appears on page 26 of th is is
sue of th e N or thw estern B anker . . .
noon panel discussion th a t a ttracted
m uch in te re st and favorable com m ent. and is en titled “More Profits for
Sm aller B anks.”
Gene C. E aton, senior vice president,
N ational B ank of Commerce, called
D. L. Som m erhalder, vice p resid en t
th e m eeting to o rder and introduced
of th e bank, w as asked for inv estm en t
Dr. M iller U pton, president, Beloit p rogram advice and he said, “E v ery
College, Beloit, Wis., as m oderator. inv estm en t program should provide a
P an el m em bers were: Mr. Sprinkel; steady runoff of m atu rin g securities.
Mr. B rockm eier; R obert A. W ekesser, W ith th is plan, a b ank is assured of
senior vice president, and M yron Weil, a co n stant flow of funds it can re in
executive vice president, th e last th ree v est to use to m ake loans. A sound
being w ith th e host bank.
in v estm en t policy should alw ays in-
X
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X
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“HAPPY BIRTHDAY, BYRON DUNN” w a s su n g b y N e b ra s k a b a n k e rs w hen
th is la rg e b i r th d a y c ak e w as p re s e n te d th e N a tio n a l B a n k o f C om m erce’s
c h a irm a n o f th e b o a rd . SE C O N D P H O T O — Beryl W. Sprinkel, v.p. & econo
m ist, H a r r is T ru s t & S a v in g s, C hicago, uses la rg e p ro je c to r w ith his o utlook
discussion. A T R IG H T — Mr. and Mrs. Glenn Yaussi p re p a re to e n te r P e rs h
in g M u n ic ip a l A u d ito riu m to see “ T he Ic e C a p ad e s,” a so cial h ig h lig h t o f th e
c o n fere n ce . M r. Y a u ssi is p re s id e n t o f N a tio n a l B a n k o f Com m erce.
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Y
95
AT TRUST BREAKFAST w e re sp e a k ers, fro m l e f t : John C.
Whitten, Sr., v.p. & t.o .; O. L. Clarke, Jr., v.p. & t.o .; E. N.
Thompson, sr. v.p., a n d John E. Wilson, t.o., a ll w ith N a tio n a l
B a n k o f C om m erce.
SE C O N D P H O T O — V is itin g b e tw e e n ses-
elude th e re g u la r spacing of m a tu ri
ties.”
T he one and a half day ev en t w as
concluded w ith a social hour, b an q u et
an d evening a t “The Ice C apades.”—
End.
J o in s S tock Y ards N atio n a l
Dale V. N eum eyer h as joined th e
correspo n d en t b a n k division of th e
Stock Y ards N a
tional B ank, Omaiha, according to
A. J. H allas, p re s
ident.
Mr. N eum eyer
is a 1959 g ra d u
ate of M o n t a n a
S tate U niversity,
and w as r a i s e d
on th e f a mi l y
farm a t B enning
ton, Neb. A n ex
perienced cattle feeder, he h as had
tw o y ears a g ric u ltu ra l lending back
ground.
C raw ford
T he C raw ford S tate B ank recen tly
increased th e b a n k ’s capital to $75,000
th ro u g h a stock dividend. One new
director, R ex H agem eister, w as elected
a t th e a n n u al m eeting. He is a local
g rain and feed dealer.
F u lle r to n
R em odeling w o rk has been com
pleted on th e in te rio r and fro n t p o r
tio n of th e F irs t N ational B ank.
T he new ly rem odeled b an k lobby
has an enclosed en tran ce in th e so u th
east corn er of th e building. T he teller
w indow s are stream lin e in design and
diagonally a rra n g e d in th e lobby. The
w all pan elin g an d floor tile blend w ith
th e color schem e of th e teller counters.
The new low ered ceiling and th e m od
e rn ligh tin g a rra n g e m en t enhance th e
lobby. A p riv a te office is located to
th e rig h t of th e e n tran ce in th e n o rth
east corn er of th e building. The ex
sions w ere, fro m l e f t : K. L. Stewart, cash., a n d Eldon John
son, a.c., b o th of C itiz en s S ta te B a n k , P o lk ; Kenneth Hurner,
v.p. & cash., B a n k o f M onroe, a n d Rex E. Miller, v.p., N a
tio n a l B a n k o f Com m erce.
te rio r finishing of th e building is of
brick and v itrin e e r panels.
P resid en t E. M. Black said th a t a
new b u rg la r alarm and cu stom ers’ safe
deposit boxes are also being installed
in th e over-all im provem ent project.
A fter refinishing w ork is com pleted
in th e re a r area of th e building, w hich
has served as the b a n k ’s tem p o rary
q u a rte rs for th e past th ree m onths, a
form al opening w ill be held.
K im b a ll
G rand opening w as held by the
A m erican N ational B ank last m onth
in its new ly rem odeled building. N ear
ly 5,000 people visited th e b an k in
tw o days. A strik in g co n trast is p ro
vided by th e new fro n t of the bank.
It is designed w ith glass and black
tile w ith m odern solar brick.
The b ank also announced an in
crease in capital to $200,000. Surplus
is $300,000.
Com plete renovation inside featu res
carp etin g th ro u g h o u t, w ith w aln u t
desks and te lle rs’ counters. A m odern
suspended ceiling w ith m oveable light
panels gives th e room a b rig h t touch.
W alls are sm artly decorated, and in
clude w a ln u t panels on light blue
background, and tex tu re d panels. All
new fixtures harm onize w ith the su r
roundings.
B ookeeping room s are located in
th e east p a rt of th e building, w ith
a d irecto rs’ room in th e n o rth east. T ell
ers are in th e east section of the m ain
room and officers are in the w est sec
tion. A p riv ate office is located in th e
so u th w est corner.
K en esaw
The A dam s County B ank has sta rte d
an extensive rem odeling program , ac
cording to a re p o rt from R am on Nolte,
cashier.
The ceilings have been low ered and
replaced w ith accoustical tile; new
lig h tin g has been installed; drapes
have been ordered and a new in terio r
p a in t job has been com pleted. W ith in
the n ex t few w eeks, a new glass door
will be installed; p lan ters w ill be
added and the officers’ area rem odeled.
th e n
»
IS
only
ONE BANK
©
in
the
S t Joseph
aIKJ\ Stock
Yenfs
.
FIRST STOCK
YARDS BANK
. . . m ake it yo u r correspondent!
T h e on ly ban k w ith up-to-the m in u te
inform ation on livestock m arketing and
financing!
FIRST STOCK YARDS BANK
SOUTH ST. JOSEPH, MO.
No rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
96
N ebraska
New s
I s t C o n t ir it m i a l A d d i t io n S h o w n
the bank. The F reu d en b u rg s took \
over both banks at the close of b u si
ness F e b ru a ry 24.
It is understood th ey w ill subse
quently m erge th e tw o banks. The
F arm ers State show ed deposits of
$1,821,174 at th e end of 1961 w ith capi
tal and su rp lu s at $230,000. The F irs t
N ational of S cribner had deposits of
$1,361,596 at the end of 1961 w ith capi- F
tal and su rp lu s of $150,000.
H en ry H. Byers, presid en t of B ank
ers Service Company, Des Moines, ne
gotiated the sale for all parties con
cerned.
'
S id n ey
of th e new F i r s t C o n tin e n ta l N a tio n a l B a n k as i t w ill
a p p e a r a f te r th e a d d itio n a t le f t is co m p le te d a d ja c e n t to th e p re s e n t b u ild in g . The
$1.1 m illio n a d d itio n w ill n e a rly double th e b a n k in g a re a a n d p ro v id e space fo r e x p a n
sion of th e in s ta llm e n t a n d com m ercial loan a n d t r u s t d e p a rtm e n ts. T he fo u rth floor
w ill be a v a ila b le fo r fu tu re g ro w th . T he a d d itio n w ill re p la ce th e L in c o ln T h e a te r
B u ild in g .
A R C H IT E C T ’S D R A W IN G
S co ttsb lu ff
K en n eth L ittlejo h n
a ssista n t cashier of
Bank.
Two new d irecto rs
th e bank: E ug en ia T.
T. Rodgers.
has been elected
th e F irs t State
w ere nam ed by
A bbott and Jo h n
B oth S crib n er B an ks S old
R. G. F re u d e n h u rg and his son, E l
don G., of W est Point, have p u rchased
m ajo rity stock in both th e F irs t N a
tional B ank and th e F a rm e rs State
John Van Horne
B ank at Scribner. R. G. F reu d en h u rg
is p resid en t and E ldon is executive
vice p resid en t and cashier of the F irs t
N ational B ank of W est Point. They
w ill continue to hold these positions.
On F e b ru a ry 10 th e y purchased 87
per cent of stock in th e F a rm e rs State
B ank from A rth u r H. Shultz, presi
dent, and o ther m em bers of the Shultz
fam ily. On F e b ru a ry 20 th e y p u r
chased in excess of 80 p er cent of
stock in th e F irs t N ational of Scribner
from d irectors and active officers of
Edwin Van Horne
Michael Van Horne
SPECIALISTS IN
BANK BOND PORTFOLIOS
AND INVESTMENTS
It is our aim and effort to give such service to our patrons that
they profit from our dealings and recommend us to their friends.
In vestm en ts,
FARM CREDIT S L O G .
OMAHA
P H O NE
Inc*
345 2 2 4 !
O v e r a half-century of banking and investment experience
N o rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
E ugene Bonkiewicz, vice presid en t
of th e Sidney N ational Bank, has re
signed to accept a sales job w ith Lockwood G raders, Inc. at Gering.
^
S p a ld in g City
H anna T. Sullivan, vice p resid en t
of th e Spalding City Bank, died last
m onth.
^
S tam ford
Miss Susan C arrah er has been proF
m oted from vice presid en t to p resid en t
of the Stam ford Bank, replacing th e
late Joseph Flam m ang.
W illiam F. P entz w as prom oted -y
from cashier to vice p resid en t and
cashier.
W averly
A n expansion program is u n d erw ay
a t L an caster C ounty B ank at W averly,
according to Don D unlap, executive
vice president.
P lans call for the rem odeling of the
building directly n o rth of th e presen t
ban k building to provide additional
office and lobby space.
T
N E B R A SK A T R IP . . .
i
(C ontinued from page 90)
the FD IC w ere hosts a t a luncheon
Tuesday noon. C hairm an E rie Cocke
rep o rted th e FD IC fund now is $2.3
billion. It is estim ated it w ill be $3.6
billion at th e end of 1969 w ith de
posits of $360 billion insured. I t w as
also bro u g h t out th a t in com m ercial
banks 98 p ercent of accounts are less
th an $10,000, w hile approxim ately 56
percen t of th e dollar am o u n t in de
posits is insured, show ing th a t the
public has considerable confidence in
com m ercial banks today above and
beyond the in su red account lim it.
Savings and Loan associations have
ap proxim ately 99.7 p ercen t of th e ir
accounts less th an $10,000, w hile approxim ately 95 p ercen t of th e ir dollar
am o u n t invested is insured.
NBA R eception
Tuesday e v e n i n g th e N ebraska
B ankers A ssociation w as host to th e
sta te ’s tw o Senators and four R epre
sentatives, as w ell as 24 officials from
x
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F-
’
F
^
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Nebraska
su p erviso ry agencies and a n u m b er of
guests from o th er federal agencies,
trad e associations and O m aha and
L incoln new spapers.
i n t e r c h a n #/v
Conference With Comptroller
T he first conference on W ednesday
m orning, F e b ru a ry 21, w as w ith
Jam es J. Saxon, C om ptroller of th e
C urrency. In a fo rth rig h t m a n n e r he
stated his office w ould be ru n on tw o
principles. The first is public dis
closure of all d ocum entation of th e
office. The second is a public p ro
cedures pro g ram w hich w ill m ean
th a t all p a rtie s concerned w ith or af
fected by an y m a tte r p ending before
th e C om ptroller w ill be notified so
th ey m ay have full know ledge of any
proceedings tak in g place.
H is office c u rre n tly has 160 people
in W ashington, D. C., and th is staff is
being m aterially expanded now, p a r
tic u l a r l y w ith th e aim of building up
a com plete d e p a rtm e n t th a t can h a n
dle all m a tte rs relatin g to tr u s t w o rk
of banks. He h as w ritte n to all n a
tional b an k s ask in g th e ir opinions of
all form s, operations, etc. of th e Comp
tro lle r’s office, w ith a view to w ard
con stru ctiv e revision of th e n atio n al
banking stru c tu re . He expects th is
stu d y to be com pleted by Septem ber
w hen m uch of th e change w ill be p u t
into effect. T h a t w hich req u ires leg
islation w ill be given to Congress.
Mr. Saxon th e n stepped w ith o u t
h esitatio n into a co n tro v ersial issue
he has initiated. He stated th a t “ex
cessive c h a rte rin g of b an k s is occur
rin g p rim a rily in states w h ere state
su perviso rs do n o t have a u th o rity to
g ra n t expansion of facilities such as
branches. T his is uneconom ical and is
a su bterfu g e to get aro u n d b ran ch
ban k in g lim itatio n s.” The C om ptrol
ler advocates w id er b ran ch in g p riv i
leges. A fter a recent, extensive eluci
dation of his stan d on th is m a tte r, he
said, he w as inform ed by th e p re si
d en t of one large N ew Y ork b a n k th a t
th is w ould lead to d estru ctio n of th e
dual ban k in g system . Mr. Saxon said
he replied th is w as “u tte r n onsense.”
T his re p o rte r asked him if it w as
tru e th a t he favored n atio n al b an k
b ran ch in g across state lines, b u t a
firm answ er w as n o t given, only re fe r
ence to th e fact th a t such p erm ission
w as in force p rio r to 1927 w h en it
w as stopped, and th e 1927 law could
be revoked. He believes th a t Congress
should enact a b ran ch in g law w ith a
deferred date to p e rm it state legisla
tu re s to enact equal or m ore liberal
legislation. H e told th e N ebraska
group, “th e law s of all 50 states have
not k ep t u p w ith p ro g ress.”
T his view p o in t of C ongressional
a u th o rity to pass law s o v errid in g state
law s w as challenged by one of th e
“W O W ! H ow c o m p lica te d can it
b e ? ” w a s am o n g com m ents h e a rd in
th e m a in lo b b y of th e F i r s t N a tio n a l
B a n k o f O m aha re c e n tly w h e n th e
b a n k d isp la y e d a m odel of th e M idto w n In te rc h a n g e c o n n e c tin g I n t e r
s ta te H ig h w a y 480 to O m a h a ’s p ro
posed W e st a n d N o rth E x p re ssw a y s.
D on R. O stra n d , vice p re sid e n t, le f t
w ith p o in te r, a n d J im Cook, a g r i
c u ltu ra l r e p re s e n ta tiv e , rig h t, are
show n e x p la in in g th e m odel. The
d isp la y a tt r a c t e d th e m ost in te r e s t
o f a n y d isp la y show n in re c e n t y e a rs
b y th e b a n k . C o n stru c tio n on th e
in te rc h a n g e is to b e g in th is sp rin g .
N ebraskans. Mr. Saxon in tu rn dis
agreed w ith him , statin g th a t the
state is a creatu re of Congress and
th e la tte r can create law s to p erm it
n atio n al banks to operate differently
th a n state banks.
Treasury Conference
A conference followed w ith R obert
V. Roosa, U nder S ecretary for M one
ta ry A ffairs of th e T reasu ry D ep art
m en t and his staff. A n um ber of in te r
esting slides w ere shown, giving the
la te st figures on th e budget and re
lating th ese expenses to th e income,
th e effect on th e n ational debt and
re s u lta n t steps th a t are tak en in debt
m anagem ent. It w as rep o rted th a t th e
c u rre n t offering of $11 billion refu n d
ing, w hich ended th e day of th is m eet
ing, w as going v e ry well. In fact,
w h ere p revious refundings norm ally
b ro u g h t in m ajor activ ity on th e final
day and even in final h o urs of th e
announced period, m uch of the activ
ity th is tim e had tak en place in the
first days afte r th e actual refunding
started.
V isit W ith Fed
The last official function of th e dele
gation w as a luncheon w ith G overnors
of th e F ed eral R eserve System in the
F ed building, followed by a confer
ence in th e b eau tifu l board room.
G overnor Shepardson, him self a fo r
m er u n iv ersity dean of agriculture,
w as keenly in terested in receiving
first h an d live stock and feed grain
re p o rts from th e v arious p a rts of th e
state. H e em phasized th a t one of th e
News
97
m ain problem s affecting the N ebraska
and m idw est area rig h t now is how
th e farm p rogram of th e E u ro p ean
Common M arket w ill relate to our
farm products. He said everyone con
nected w ith ag ricu ltu re in th e m id
w est should have a v ital in te re st in
th is m atter.
One of th e high points of th is trip
w as the excitem ent th a t w as felt
everyw here in th e n a tio n ’s capitol on
T uesday, F e b ru a ry 20, w hen Lt. Col.
Jo h n H. G lenn rocketed into outer
space for his high-speed, three-orbit
spin around th e earth. TV sets and
radios blared everyw here. If m eetings
w ere being held, notes w ere co n stan t
ly passed to th e presiding chairm an.
The feeling of everyone w as like
electricity, ju m ping from one person
to the nex t w ith enth u siastic rem ark s
and responses.
A fter an ex tra day to p erm it sig h t
seeing in th e n atio n ’s b eautiful capi
tol, th e group en train ed at 5:15 p.m.
T h u rsd ay on George W ash in g to n ’s
b irth d ay , arriv in g in Omaha F rid ay
evening. F irst-h an d rep o rts by v a ri
ous m em bers of th e delegation w ill be
given a t each of th e N ebraska B ank
ers A ssociation group m eetings com
ing up in A pril. These rep o rts w ill be
given a t th e “for NBA m em bers only”
closed session d u rin g each of th e six
m eetings.—End.
F irst N ebraska
Securities , Inc .
L is t e d a n d U n l i s t e d S t o c k s ,
M u tu a l F u n d s , M u n ic ip a l a n d
C o r p o r a te B o n d s.
M unicipal bonds can b rin g a
rew ard in g re tu rn to th e m an
in the high ta x b rac k e t . . .
but m ost people know little
about th e m !
I f you haven’t already dis
covered the high take-hom e
yield of tax-exem pts, call on
us for factu al inform ation
relative to these ever-grow
ing-in-im portance securities
fo r your portfolio. A list of
c u rre n t m unicipal offerings
is available fo r the asking.
F irst N ebraska
Securities , Inc .
M e m b e r N ew York Stock Exchange
Assoc. M e m . A m erican Stock Exchange
Lincoln Bldg., 1001 “ O " St.
Lincoln, N ebraska, Telephone
477-9221
S titt Bldg., 237 N . St. Joseph A ve.
H astings, N ebraska, Telephone 3-3141
Northwestern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A WHOLE NEW WORLD
OF PROGRESS FOR
CORRESPONDENT
BANK SERVICE
Correspondent Bank Department
i
HOMER
R. J E N S E N
W
V :v v '
I I
i;
-..........
' lߧM
B ankers T ru st
Com pany
The Des Moines Bank for YOU
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Member: Federal Deposit Insurance Corporation • Federal Reserve System
99
Iowa
2:35
NEWS
C H A R LE S H . W A LC O T T
PRANK W A RN ER
President
Se cretary
2:45
Sioux C ity
Des Moines
Sprint/ Bank Meeting, March !2
2:55
p r e s i d e n t , F a rm e rs Savings
Bank, G rundy Center.
“In creasing In te re st R ates on
B ank Savings and Tim e C /D ’s,
W hy?”—R obert D. Dixon, p re s
ident, Rolfe State Bank.
“Several Y ears Ago I t W as
Claimed T h at B anks Could Not
P ay 3 P er Cent, How Can T hey
Pay 4 P er Cent and Make
M oney?” — K enneth Benda, ex
ecutive vice president, H artw ick S tate Bank.
G eneral R ound Table on In te r
est Rates.
“How B ank D eposits A re Taxed
or Not Taxed — A ssessm ent” —
W endell B. Gibson, m em ber,
Gibson, S tew art and G arret,
Des Moines, legislative a tto r
neys of the Iow a B ankers As
sociation.
R eport of N om inating Com m it
tees.
A djournm ent.—End.
H E 41st an n u al State B anking 12:30 “E ducational D ividends”—P aul
3:15
S. Am idon, president, P aul S.
C onference and 22nd a n n u a l m eet
A m idon & Associates, Inc., edu
ing of th e Iow a J u n io r B an k ers A sso
cational consultants, M inneapo
ciation w ill be held M onday, M arch 12,
lis, Minn.
a t th e H otel S avery in Des Moines.
“In A ccount W ith Y outh”—IsaF ollow ing is th e program :
bell Giddings, executive vice
A.M.
president, P aul S. A m idon &
8:00 R eg istratio n —M ezzanine Floor.
3:30
A ssociates, Inc.
9:00 Call to O rder — J o h n R. Reid,
presid en t, F ed eratio n of C ounty
4:00
1:30 Call to Order.
B an k ers A ssociations; cashier,
“In te rn a l R evenue Service —
A tlan tic
S ecu rity S tate B ank, H ubbard.
N um bers and L e tte rs”—E rn e st
C. D. E m m ert, vice p resident of th e
W elcom e—C. H. W alcott, p re si
W. Bacon, d istrict director, In
dent, Iow a B an kers A ssociation;
te rn al R e v e n u e Service, Des A tlantic State Bank, has been nam ed
p resid en t of th e bank, succeeding F red
p resid en t, S e c u r i t y N ational
Moines.
R. H unt, retired. Mr. H u n t had served
B ank, Sioux City.
2:00 “W h at Is th e F o undation for as p resid en t since Jan u ary , 1932. Mr.
“W h at Do B anks Owe T heir
Com m ercial B anks?” — Neal A. E m m ert w as a b an k exam iner prio r to
Y oung M en?” — Leo F. Kane,
Sands, Iow a co-chairm an of the joining th e ban k in 1940.
president, Iow a J u n io r B an k ers
F oundation, and president, V al
W. R. Rem ien, w ho has been w ith
A s s o c i a t i o n ; vice president,
ley B ank & T ru st Company, th e b an k since 1918, w ill continue as
A m e r i c a n T ru s t & Savings
Des Moines.
vice presid en t and w ill serve as ch air
B ank, D ubuque.
m an of th e board. H arv ey H ansen w as
“A
rea
B
ank
TV
P
rom
otion”—
2:10
9:15 “A m erican In s titu te of B anking
Jam es A. Wolf, cashier, A m eri nam ed a ssistan t cashier.
W o rk in Io w a”—R. J. Nachazel,
can State Bank, Mason City.
vice p r e s i d e n t and cashier,
A u relia
F a rm e rs and M erchants Sav
Capital stock of th e F irs t T ru st and
2:25 “A ction T aken by G rundy Coun
ings B ank, B urlington; Jo h n E.
ty B ankers A ssociation on In Savings B ank has been increased from
M angold, A.I.B. associate coun
creasing R ate of In te re st on All $50,000 to $100,000. Surplus rem ains
cilm an for Iow a, and Leslie H.
Tim e D eposits”—A. V. Dieken, a t $100,000.
Olson, also A.I.B. a s s o c i a t e
councilm an for Iowa.
9:35 “H ow to T u rn Y our E m ployees
In to Salesm en” — W illiam N.
F lo ry , a ssista n t vice president,
H a rris T ru s t and Savings B ank,
Chicago.
10:05 “In d u stria l D evelopm ent a n d
th e Sm all B an k ” — Jam es W.
C ravens, vice president, San
b o rn Savings B ank.
10:20 “A B an k ’s F ro n t L ine — The
T ellers” — T hom as O. Cooper,
p resid en t, Jefferson S tate B ank,
Jefferson.
10:50 “T he Im p o rtan ce of B eing P ru
d e n t”—J o h n H. Reid.
11:00 “R ecent A m endm ents to th e
F ed eral W age-H our L aw ” — F.
L. L udem ann, Jr., field office su
p ervisor, w age and h o u r and
public co n tracts division, U. S.
D e p a r t m e n t of L abor, Des A R C H IT E C T ’S D R A W IN G of th e n ew m o to r b a n k fa c ilitie s p la n n e d fo r th e C ouncil
B luffs S a v in g s B a n k . T he f a c ility w ill f e a tu r e th re e d riv e -in w indow s a n d 4,000 sq u a re
Moines.
f e e t o f sto ra g e space u n d e rn e a th th e s tru c tu re . I t is b e in g b u ilt im m e d ia te ly so u th of
11:30 R ecess for luncheon.
th e p re s e n t b a n k b u ild in g . T he P a u lso n C o n stru c tio n C om pany of C ouncil B luffs Avas
a w a rd e d th e c o n tra c t a t a b ase b id of $129,000. N ew M osler d riv e-u p w indow s w ill be
P.M.
fe a tu re d . I t is to be in o p e ra tio n by n e x t N o v em b er.
12 Noon L uncheon.
T
New #tut nei/
M
N o rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
100
Iow a
News
**Sail JKnr "i 'sed ni l-arin A net inns
present, p a rt of th e p ro p erty has a
3-story building and th e balance has
a 6-story building. The larger build
ing w ill be dem olished.
The b ank has also nam ed a new di- -X
rector, P aul R. Shaw ver, w orks m an
ager of th e Square-D Company.
Peoples Bank & Trust Company
F o u r staff prom otions have been h
announced. R ichard E. N ew land and
Douglas G rinde w ere prom oted from
a ssistan t cashiers to a ssistan t vice
presidents.
Jam es Livingston, auditor, w as pro- Y
m oted to a ssistan t cashier and auditor.
E a rl J. Caywood, a loan interview er,
w as m ade an assista n t cashier.
Clarence
S A L E C L E R K IN G CA R used b y th e D a v is C o u n ty S a v in g s B a n k , Bloom field, Io w a,
has b e en n a m e d th e “ S a il K a r .” Show n u sin g th e in sid e ra d io is V irg il K . H e rin g ,
e x e c u tiv e vice p re sid e n t, a n d k n e e lin g o u tsid e is Jo e M ille r, L u ca s C o u n ty E x te n sio n
D ire cto r.
T he b a n k p u rc h a se d th e sp o rts w ag o n la s t y e a r a n d in s ta lle d a tw o -w a y ra d io , plus
a p a ir o f p o c k e t phones. A t a u c tio n sales, one m an w ith a p o c k e t p h o n e fo llo w s th e
a u c tio n e e r a n d ra d io s all in fo rm a tio n as to ite m s sold, b u y e r, a n d p ric e b a c k to th e c a r
w h ere a ll fa c ts a re re co rd e d b y a n o th e r person. T h is e x p e d ia te s th e tim e s p e n t in
s e ttlin g th e sale a n d also e lim in a te s som e v e ry cold fingers p re v io u s ly re c e iv e d b y th e
c le rk . T he b a n k also uses th e c a r in ro u tin e w o rk , such as p ro v id in g co m m u n ica tio n s
a t th e c o u n ty f a ir , tra n s p o r tin g L ittle L e a g u e rs a n d c h u rch y o u th groups.
Ames
B loom field
Floyd A ndre, dean of th e College of
A gricu ltu re of Iow a State U niversity,
w as nam ed to th e board of th e U nion
Story T ru s t and Savings B ank, ac
cording to A. W. L ucht, president. He
replaces Louis H. Judisch.
Mr. L u ch t said he an ticip ates m ov
ing into th e new b an k building early
in th e second q u a rte r of 1962.
C harles N. P e ttit of Bloomfield w as
elected to th e board of th e Davis
C ounty Savings Bank, filling th e v a
cancy left by th e passing of H a rry
B urch ett, w ho had served on th e
board for m ore th a n 40 years.
Baldwin
A new building is being com pleted
for th e B aldw in Savings Bank. The
tile block stru c tu re , w ith brick v en eer
exterior, is located ju s t south of the
old qu arters.
Baxter
The S tate Savings B ank has in
creased its capital from $50,000 to
$100,000, b rin g in g th e to tal for capital,
su rp lu s and reserv es to m ore th a n
$250,000.
B edford
Mrs. Clifford H. Young, 74, wife of
th e p resid en t of th e S tate Savings
Bank, died a fte r an illness of several
m onths. Beside h e r husband, she is
survived by a daug h ter, Mrs. K ath ry n
Sm ith of Bedford, and a son, W illiam
G. Young, vice p resid en t of th e bank.
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Cedar Rapids
Merchants National
R ussell W. Man att, vice p resi
den t of th e bank,
w ill retire M arch
1.
w o rk w ith th e
M e r c h a n t s N a
tional as a m es
senger in 1916.
D uring th e past
45 y ears he has
D
,, »x, . ^
occupied
m a n yJ
R. W . M A N A T T
. .
positions, includ
ing m an ager of th e savings d e p a rt
m ent, and has handled m any phases
of the b a n k ’s operations.
Guaranty Bank & Trust
The form er N ew m an D epartm ent
Store building in Cedar R apids has
been sold to th e G u aran ty B ank &
T ru st. B ank officials plan to utilize
th e p ro p erty as a m odern drive-in
facility. The p ro p erty has a 120 foot
frontage on Second stre e t an d a 140
foot fron tage on Second avenue. At
\
The Clarence Savings B ank has a n
nounced th e prom otions of Alm a Ernstin g from cashier to vice president
and tru s t officer, and Lloyd Hassel- y
busch to cashier and farm rep resen ta
tive. C. W ayne Saunders, executive
vice presid en t w ill also serve as a tru s t
officer.
y
Cum berland
L. L. M archant, executive vice p resi
dent of the C um berland Savings B ank ,,y
has announced th e com pletion of an
extension to th e m ain b an k building
and a rem odeled d irecto rs’ room. The
new addition m easures 24 feet by 36
feet. A n open house w as held last ”t
m onth.
D anville
M. E. W atts, executive vice presiden t of th e D anville State Savings
Bank, announces an increase in the
b a n k ’s su rp lu s from $50,000 to $100,000.
The b an k is paying 4 percen t on one
y ear CDs.
A
D iagonal
A. R. Sanderson, vice p resid en t and
d irector of th e F irs t S tate Bank, has
He s t a Hr et ehas
d served as m anager of
retired.
th e b a n k ’s Shannon City office. S tan
ley Cregeen, a ssistan t cashier, has
tak en over as office m anager.
>r
y
Earlham
F letch er F. Jen n in g s has been
elected a ssistan t cashier of th e E a rl
ham Savings Bank. He serves as farm
rep resen tativ e.
i
Elkader
T he C entral S tate B ank has increased its board to 8 m em bers by
electing tw o new m em bers a t th e an
nu al m eeting. T hey are: E m m ett C.
W halen, clothing store ow ner, and
J. C. Costigan, road contractor.
The b ank also added $50,000 to su r
plus, m aking a capital stru c tu re of
$100,000 capital and $150,000 surplus.
y
Y
101
IT'S OUR
th
f\C
.K-
rt
H
i* Ü!,
if !
J. W M . VAN DYKE
Chairman of Board
L Í
W HAT’S IN A NAME? . . .
The
name
"Toy"
has
been
associated
with
the fou nder of the Farmers Loan and Trust C o m p a n y
also
the
fin an cial history of Sioux C ity since the beginning of
the 20th C en tu ry.
pany,
C. C. VAN DYKE
President
organized
The Farmers Loan and Trust C o m
in
1883, was
moved
to
Sioux
C ity
to
Toy
were,
op era tio n since th a t tim e .
charter.
1912.
Bank
of
C om m erce
in
Due to M r. Toy's long
profession, the name of
at
and
N a tio n a l
this
still
tim e,
are,
Bank.
No
reo rg an ization
since
the
banking
authorized
under
was
operations
the
orig inal
N A TIO N A L
$934,403.00
BANK
$36,309,186.00
Located on Sioux C ity's 3 Main Streets
• PIERCE
• NEBRASKA
• FOURTH
Member E.D.I.C.
E. E. ERICKSON
Vice President
,
the
affec te d
Deposits 1962
C. ARTHUR JOHNSON
Vice President
N a tio n a l
association with the banking
from Storm Lake in 1889 and has been in continuous
Jam es F. Toy (1 8 5 0 -1 9 3 7 ),
the
the N a tio n a l Bank of C om m erce was changed in 1920
Deposits 1912
ça
founded
Sioux C ity in the y ea r
U. H. BUNKERS
Vice President
HOMER M. BOYD
Assistant
Vice President
CONRAD ARONSON
Assistant
Vice President
HENRY K. LARSEN
Assistant
Vice President
LESLIE H. OLSON
Cashier
W AYNE HETTINGER
Assistant Cashier
RICHARD BREYFOGLE
Assistant Cashier
LEON V. HARBECK
Assistant Cashier
RONALD G. W ILL
Assistant Cashier
JAMES V.TRITZ
Assistant Cashier
»
CLARK WATKIN
Assistant Cashier
board of directors
U. H. BUNKERS
R. C. BURKE
GEORGE R. CALL
R. S. HOAK
E. E. ERICKSON
ROBERT P. MUNGER
C. C. VAN DYKE
FLORENCE H. TOY
L. GARLAND EVERIST
C. ARTHUR JOHNSON
J. W M . VAN DYKE
No rthw e ste rn Banker, March, 1962
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Federal Reserve Bank of St. Louis
102
Iow a
News
R e m o d e l m l 1 0f t I t i
A pril 1, at w hich tim e he w ill join th e ^
H aw arden bank.
H a y esv ille
T he H ayesville Savings B ank w ill A
enlarge its facilities by co n stru ctin g
a 40 by 60 foot building, according to
E lm er H. M ertz, president. The b u ild
ing w ill be air-conditioned, w ith radi- y_
a n t heat, and have k itch en ette facili
ties.
H um boldt
R E M O D E L E D Q U A R T E R S of th e M a rio n C o u n ty S ta te B a n k f e a tu re s n e a rly doub led
floor space, ta s te f u lly done d e c o ra tin g w ith color a cc en ts, a c o m b in a tio n pool, p la n te r
and. check w ritin g desk, a n d tw o p r iv a te offices. B e c k e r a n d A sso c ia tes o f A lta , Io w a,
d e sig n ed th e p ro je c t a n d d ire c te d c o n stru c tio n b y local c o n tra c to rs. O pen house w as
c o n d u c te d la s t m o nth.
F on tan elle
H op k in ton
H. J. S tuhlm iller, p resid en t of th e
S tate Savings B ank, has announced
th e follow ing prom otions: R. H. Bow
e r and R. E. W ollen h au p t w ere elected
vice presidents; Thos. P. M cD erm ott,
cashier, and Leola F au ro te, a ssista n t
cashier. E rn e s t M iller continues as
vice president.
Dr. J. P. Connelly has been elected
to th e board of th e Citizens State
B ank, succeeding Ted L. Jam es.
The y ear 1962 m arks th e 40th year
th a t E. W. M ussm ann, president, has
been in the ban k in g business.
G len w ood
L eonard C. Dean, 62, p resid en t of
th e Glenwood State B ank, died re c e n t
ly follow ing a stroke. He had been
associated w ith th e b an k for 37 years.
S urviv o rs include his w ife and a son,
Jo h n C. Dean, cashier of th e bank.
Griswold
Joseph (Bud) Prokop, w ho has
served as a d irecto r of th e G risw old
State B ank, w as elected to th e position
of executive vice p resid en t a t the
an n u al m eeting.
Ha war den
Jam es D. A nderson, assista n t cash
ier, The Citizens
F ir s t N a tio n a l
B a n k o f S to r m
Lake, has accept
ed a position as
c a s h ie r of T he
F a r m e r s S ta te
B ank of H aw arden.
Mr. A n d e r s o n ,
w ith The Citizens
F ir s t N a tio n a l
s in c e 1956, h a s
su b m itted his resignation, effective
We S p ecia lize in Iow a M u n icip a l B onds
Com e to Us f o r O fferin gs a n d Bids
First
of
Iowa C orporation
IN V ESTM EN T SE C U R ITIES
20(1 E q u itab le B u ild in g
D es M oines 9 , Iowa
P h o n e CH erry 4 -7 1 5 8
No rthw e ste rn Banker, March, 7962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The board of directors of th e Hum- ^
boldt T ru st and Savings B ank has
approved co n stru ctio n of a new b ank
building it w as announced by J. L.
Campbell, president.
*
The new building w ill be located on
H um boldt’s m ain street, one block
east of th e p resen t location, on an 80
foot fro n t w hich has been recently ^
purchased. W alter B ecker and Asso
ciates of A lta w ill design th e building,
and co n tracts w ill be let th is m onth.
H um eston
v
T. R. H enderson, cashier of th e
C itizens State Bank, H um eston, has
been prom oted to vice presid en t and
cashier, according to K. W. Richard, y
president.
Indianola
W. G. B eatty has been elected vice *f
president, and Gene G eadelm ann
nam ed a ssistan t cash ier by th e W ar
ren C ounty B ank and T ru st Company.
K eo k u k
H. L. B ughm an w as prom oted from
cashier to executive vice presid en t of
th e K eokuk Savings B ank & T ru st
Company. He has been w ith th e b ank
since 1929.
Lansing
Jam es A. Ryan, a ssistan t cashier, v
has been prom oted to cashier of the
K ern d t B ro th ers Savings Bank, accord
ing to T. M. K erndt, vice president.
Mr. K ern d t has p reviously held th e y
title of vice p resid en t and cashier.
Mr. R yan has been w ith th e b ank since
1954.
Latim er
P. H. B orcherding, p resid en t of the
L atim er State Bank, has announced
th e election of J. E. Davis and I. D.
Davis to th e board of directors. Mr. ^
I. D. Davis w as also elected as cashier
of th e bank.
LeM ars
Gordon L. M ennen, p resid en t of the
LeM ars Savings Bank, rep o rts th a t
to tal assets of th e b an k exceeded $10
103
m illion a t year-end for th e first tim e
in history. The d irecto rs prom oted
H. A. A hlers to vice p resid en t from
assista n t vice president.
Liberty v ille
F ra n k A. D ustin, 90, vice p resid en t
of th e L ib erty v ille Savings B ank, died
last m on th a fte r an illness of several
w eeks. He w as a fo rm er p resid en t of
th e L iberty v ille bank.
L enox
R alph W. Zabel, p re sid e n t of th e
F ir s t N ational B an k in Lenox, re p o rts
th e com pletion of a rem odeling and
expansion p rogram . The enlarged
building is 44 by 58 feet. P lan n in g
and co n stru ctio n w as done by th e
K ansas City B ank B uilders and Con
su ltan ts, K ansas City 33, M issouri.
Open house w as held by th e b an k last
m onth.
Two guys
at home
anywhere in Iowa!
Take Mr. La Salle and team him up with Max Roy
and you’ve got a winning combination! Max knows Iowa
and Iowa farming, and Mr. La Salle represents a staff
that can help La Salle’s Iowa correspondents with
trust work, business development, operations—well, you
Lowclen
name it—and Mr. La Salle will do his best to oblige!
W. H. W itte, p resid en t of th e A m eri
can T ru s t & Savings B ank, re p o rts
th a t th e stockholders have approved
th e leasing of te m p o ra ry q u a rte rs for
six m o n th s and to s ta rt th e new b u ild
ing an d rem odeling of th e p re se n t
building as soon as w e a th e r perm its.
Why not call Max and tell him you’d like to meet his partner!
Max Roy lives nearby in Iowa City, but he headquarters
at La Salle National Bank, 135 So. La Salle Street,
Chicago 90, Illinois. STate 2-5200.
Mount V ernon
Dr. Roy N elson w as elected p re si
d en t of th e Mt. V ernon B ank & T ru st
Com pany recently, succeeding th e late
B en C. Neal, w ho had served th e b an k
as p resid e n t for th e p ast 30 years.
Dr. Nelson, w ho is teach in g for a
y ear a t college in L akeland, F lorida,
plans to r e tu rn to M ount V ernon a t
th e end of th e school year.
R aym ond Mallie, director, w as elec
ted a vice p re sid e n t of th e bank, and
R. B. W olfe w as nam ed as a director,
tak in g th e place of Mr. Neal.
M anson
F re d W ade has been nam ed cashier
of th e F ir s t N ational Bank. In o th er
prom otions, K eith G rim m , G latha Fillen w o rth and L era Blazek w ere nam ed
a ssista n t cashiers.
M axwell
Jo h n B. T hom pson has been elected
cashier of th e M axw ell State Bank,
succeeding D an P eters, w ho has re
signed a fte r serving as cash ier since
th e b a n k ’s o rganization in 1943. Mr.
P eters w ill continue on th e board of
directors.
M aquoketa
The Jack so n S tate Savings B ank
recen tly tra n sfe rre d $250,000 from u n
divided profits to surplus, m aking to tal
su rp lu s now $500,000.
MEMBER FDIC.
COMPLETE TRUST SERVICES
No rthw e ste rn Banker, March, 1962
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Federal Reserve Bank of St. Louis
104
Iow a
News
L E F T — Orval Spahn, v.p., F i r s t S ta te , M a p le to n ; John B. K eeline, pres., C e n tra l T & S, C h ero k ee; Chas, H. W a lco tt pres.,
S e c u rity N a tio n a l, S io u x C ity (a n d pres., Io w a B a n k e rs A ssn .),
a n d J u liu s Rohwer, p res., F a rm e rs S ta te , S chlesw ig. C E N T E R —
R obert W. Thom, official a sst., F i r s t N a tio n a l C ity , N ew Y ork,
a n d J. Wm. V an D yk e, chm n., T o y N a tio n a l, S ioux C ity.
R IG H T — T ilford C. G aines, v.p., F i r s t N a tio n a l, C h icag o ; Clark
A rnott, p re s., S ac C ity S ta te (a n d G roup I se c y .), a n d M. L.
A braham son, tre a s., S ta te of Io w a , D es M oines.
N a tio n a lly K n o w n
y
*
IS2 .1 P e r s o n s t o G r o u p 1 M e e t i n g
B y MALCOLM FREELAND
P r e s id e n t
N E of A m erica’s best-know n p u b
D elegates a t t e n d i n g th e annual
lic speakers, ad dressing th e a n luncheon g ath erin g h eard Dr. E a rl L.
nu al b an q u et m eeting of G roup I of Butz, dean of ag ricu ltu re at P u rd u e
th e Iow a B ankers A ssociation in Sioux U niversity, tell them th a t it is high
City last m onth, w arn ed A m ericans to tim e we begin to act like th e strong,
stop m aking concessions to th e com responsible and proud nation we al
m unists.
w ays have been.
Dr. K en n eth M cFarland, educational
In su p p o rt of his appeal for a firm
directo r for G eneral M otors, told his h and th e P u rd u e dean noted th a t al
audience, m ade up of m ore th a n 825 th o u g h th e U nited S tates has only 7
reg istra n ts, th a t one of th e m ost des p er cent of th e w orld’s population it
p erate needs of our tim e is to teach
has three-fifths of th e w orld’s autom o
fu n d am en tal A m e r i c a n i s m to th e biles, half th e w orld’s electric power,
A m erican people. The dynam ic doctor over half the telephones, two-fifths of
declared, “W e have th e defensive the steel production capacity, over 98
pow er to do an y th in g we w ant. We p er cent of its farm s electrified and a
had b e tte r s ta rt clenching our fists in pro p o rtion of young people in high
stead of w rin g in g our h an d s.”
schools and colleges th a t far ou tstrip s
F.
A. E vans, p resid en t of th e W oodany o th er nation.
b u ry B ank and T ru s t Company, Sioux
He also rem ark ed th a t new hom e
City, in his role as p resid en t of the
con stru ction passed th e 1,000,000 m ark
Sioux City C learing H ouse A ssocia again last y ear for th e 14th stra ig h t
tion, introduced th e guest speaker.
year. “T ru ly th is is convincing evi-
O
L E F T — John D avis, 2nd v.p., a n d Jerry P ick ell, re p r., b o th w ith
C o n tin e n ta l Illin o is N a tio n a l, C hicago; Tom A. P eterson, v.p.,
F a rm e rs S a v in g s, D a n b u ry , a n d J ce T. G rant, p re s., F i r s t N a
tio n a l, Sioux C ity. U P P E R C E N T E R — Robert K lin e, v.p., a n d
John W oods, a.c., b o th w ith N o rth e rn T ru s t, C hicago, a n d Ger
ald O. N elson, v.p., Iow a-D es M oines N a tio n a l, D es M oines.
L O W E R C E N T E R — R. K. Draper, re p r., L iv e S to c k N a tio n a l,
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
dence th a t the great A m erican dream
of yesterd ay is con stan tly tra n sla te d
in to b e tte r living today.”
Dr. Butz asserted th a t “Our g reatest
e rro r d u rin g th e p ast 20 y ears has
been in so freq u en tly u n d erestim atin g
our grow th potential.
“A m erica’s g reatest danger today is
our general indifference to the organ
ized attem p ts to lim it o u tp u t p e r
w orker, p er factory and p er farm . In
deed, m ost of us belong to groups
w hich subscribe in one w ay or an o th er
to th e stran g lin g philosophy of lim ited
output.
“One of the rem arkable phenom ena
of our age is th a t A m erica continues
to grow in total production and stan d
ard of living in spite of w idespread or
ganized a ttem p ts to p rev en t it.”
GROUP 1 . . .
(T u rn to page 113, please)
Sioux C ity ; K. G. K la tt, p re s., D a k o ta S ta te , T rip p , S. D., a n d
L. C. Olson, v.p., B a n k of U n io n C ity , E lk P o in t, S. D. R IG H T —
S e a te d : Chester C. Sjoberg, v.p., F a rm e rs N a tio n a l, A u re lia ,
a n d Fred C. Cummins, v.p., D ro v e rs N a tio n a l, C hicago. S ta n d
in g : R w ain Loyd, cash., C lim b in g H ill S a v in g s; Goerge H.
Coker, cash., F i r s t T & S, M oville, a n d Bernie M iller, a.v.p.,
D ro v e rs N a tio n a l, C hicago.
Vj
Iowa News
>
105
L E F T — Cy K irk, v.p., B a n k e rs T ru st, D es M o in e s; E. E. M an
uel, p res., G eorge S ta te , G eorge, a n d John D iefen d orf, a.v.p.,
S e c u rity N a tio n a l, S ioux C ity. C E N T E R — E. W. Y ou ell Jr.,
p re s., S ta te B a n k of T e rril; John M. Shonsey, exec, v.p., a n d
H erb E chterm eyer, v.p., O m ah a N a tio n a l, a n d Wm. F. W enke,
p re s., P e n d e r S ta te , P e n d e r, N e b r. R IG H T — B ill W hitm an,
a.v.p., A m e ric a n N a tio n a l B & T, C hicago, W alt N oack, pres.,
a n d W alter J. Johnson,, a.c. b o th w ith W e stsid e S ta te S av., an d
John E. M angold, v.p., M e rc h a n ts N a tl., C e d ar R a p id s.
L E F T — Ed J. Carlson v.p., F i r s t N a tio n a l, O m ah a; E. W, Nun,
C a sh ier, U te S t a te ; E. E. Popp, C ash ier, S e c u rity S ta te , H a r t
ley, a n d F rank L ove, v.p., F i r s t N a tio n a l O m aha, C E N T E R —
Jim Jackson, a.v.p., C ity N a tio n a l B & T, K a n s a s C ity ; E d
W olf, a.c., C e n tra l N a tio n a l B & T, D es M oines, a n d C. C
F ritcher, v.p., S e c u rity T & S, S to rm L ak e . R IG H T — E n jo y in g
coffee a t N a tio n a l C ash R e g is te r b o o th : W illiam Hoffm an, res.
m gr. fo r C re d it life , a n d R obert E. Puff, d ist, m gr., b o th w ith
C e n tra l S ta te s H e a lth & L ife , a n d R alph E. P eterson, v.p.,
F ir s t N a tio n a l, a ll of O m aha.
L E F T — J a y B ordew ick, a.c., a n d W ayne Thorndyke, v.p., b o th
w ith U. S. N a tio n a l, O m aha, a n d Jim Currie, p res., S ta te B a n k
o f S c h a lle r. C E N T E R - B arney G ullickson, secy., S o u th D a k o ta
B a n k e rs A ssn., H u ro n , a n d H. V. O sterberg, secy., N e b ra s k a
B a n k e rs A ssn., O m aha, R IG H T — Tom C. Cannon, v.p., Com
m erce T ru s t, K a n s a s C ity ; H ow ard Sokol, S ib ley S ta te ; D ean
H enn, a.c., B a n k o f E lg in , N e b r., a n d Gil M cEw en, a.c., H a rris
T & S., C hicago.
L E F T : Jack L ud w ig (c e n te r) R e e o rd a k re g . m gr., O m aha,
sh o w s n ew e q u ip m e n t to R ichard McOrea ( l e f t ) , cash.. H o lste in
S ta te , a n d Jam es F. M eyer, a.c., F i r s t N a tio n a l, P a u llrn a . T O P
( l e f t ) : Cliff A dam s, pres., L iv e S to c k N a tio n a l, Sioux C ity,
a n d H arry Schaller, p res., C itiz en s F i r s t N a tio n a l, S to rm L a k e .
T O P ( R ig h t) : F a y e E vans, p res,, W o o d b u ry B & T, Sioux C ity ;
J c e Snyder, a.v.p., M a n u fa c tu re rs H a n o v e r, New’ Y ork. B O T
T O M : C lif B atchelder, pres., a n d Fred P faff, v.p., b o th w ith
TL S. C heck B ook, O m ah a; C. I. R am sey, exec. v.p. & cash., F i r s t
N a tio n a l, S ib ley , a n d A. F. H ansen, v.p., Sec. S ta te , H a rtle y .
►
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Federal Reserve Bank of St. Louis
No rthw e ste rn Banker, March, 1962
106
Iowa
News
L E F T — P aul C. H odge, v.p. & geni, counsel, F e d . R e se rv e, C hi
cago, a n d V in cen t P. Cullen, pres., N a tio n a l B a n k o f B u rlin g
to n . C E N T E R — Charles H. W alsh, p res., F a rm e rs & M e rc h a n ts
S a v in g s, B u rlin g to n , who is s e c re ta ry of Gp. 11, a n d F rank K os,
v.p., W a s h in g to n S ta te , W a sh in g to n , Gp. 11 c h a irm a n . R IG H T —
E. A. H ayes, chm n., N ew L o n d o n S ta te B a n k , a n d H ud Sw iler,
cash., B u rlin g to n B&T.
Hito A ttenti ’A stron au ts" Halt at (¿roup Mi
VER 500 persons left th e ir “lau n ch
S ecretary W arner, speaking on be
ing p ad s” last m o n th to accept E d half of th e association, also questioned
E b erso le’s “B last Off” in v itatio n to a t
th e new “holding com panies” in Iowa
ten d th e an n u al m eetin g of G roup 11 th a t are selling stock for $2 and $5 per
in B urlington.
share. N um erous m em bers of th e as
sociation feel th a t th e ir activities
In charge of p re p a rin g th e p rin ted
program s for m an y years, Mr. Eber- should be studied in view of th e fact
sole (w ho is vice p resid en t and cashier th a t th e y are investing funds in the
of th e S tate C entral Savings B ank in controlling stock of several Iowa
K eokuk), designed a m issile-shaped banks.
P resid en t W alcott suggested th a t all
program for th e 1962 m eetin g th a t de
lighted th e en tire G roup 11 m em ber b anks analyze th e ir individual opera
ship. In fact, a fte r atte n d in g th e “A s tions before paying h igher in te re st on
tim e m oney. He stated th a t if a ban k
tro n a u ts ’ B all,” th e evening before the
m ain briefing session, m an y w ere con does feel th a t it can pay th e new 4 per
cent perm issive rate, it m ight be best
vinced th a t he had collaborated w ith
Lt. Col. Jo h n H. Glenn, Jr., in a rra n g to extend th e rate to passbook savings,
ra th e r th a n re stric t it to certificates
ing th e o rb ital affair.
of deposit. I t w as explained th a t th is
D uring th e g eneral briefing, held at
m ethod w ould favor th e small, reg u lar
th e Capitol T heater, a n u m b er of seri
saver, assu rin g b e tte r public relations
ous problem s affecting all Iow a banks
for th e bank. Mr. W arn er also com
w ere discussed by G roup C hairm an
m ented on th is subject, m entioning
F ra n k L. Kos, vice p resid en t of th e
th a t a n u m b er of Iow a banks have al
W ashington State Bank; and S ecretary
read y been faced w ith problem s in is
C harles H. W alsh, president, F a rm e rs
suing CDs, p artic u la rly w here the
and M erchants Savings B ank, B u rlin g
CDs have been lost.
ton; S u p erin ten d en t of B anking Clay
Mr. Stafford told m em bers of Group
H. Stafford; IBA P re sid e n t C harles H.
11 th a t state legislation should be
W alcott, and IBA S ecretary F ra n k
sought to ad ju st th e salary ceilings for
W arner.
sta te exam iners, so th a t qualified help
One of th e m ost u rg e n t problem s can be retain ed by th e state su p erin
arises from th e com m ents m ade by th e te n d e n t’s office.
C om ptroller of th e C urrency in W ash
Special praise w as given m em bers
ington, D. C., in reg ard s to n ational of G roup 11 by Bob M ullin, re p re se n t
banks o rig in atin g branches, circu m ative of th e U. S. Savings Bonds D ivi
v en tin g state approval. C om ptroller sion, Des Moines. Mr. M ullin said th a t
Jam es Saxon has indicated th a t he in 1961 th e Group attain ed 106 p er cent
w ill seek federal legislation to give of its quota, w hich w as th e highest
him th e rig h t to by-pass state a u th o r of any group in Iowa.
ity in ap proving bran ch es for national
D elegates w ere treated to a v ery in
banks. Mr. W a rn e r told delegates th a t
te re stin g lecture on China u n d er Com
th e association w as concerned about m un istic ru le by F elix G reene at th e
th is attitu d e. Sim ilar alarm on th e
closing luncheon.
subject w as voiced by Joe G ronstal,
form er state su p e rin te n d e n t of b an k Illin o is P rom otion
ing, in a ta lk in Sioux City at th e
H. D. W ilcox, fo rm er Iow a banker,
Group 1 m eeting.
has been elected presid en t of th e B ank
O
N o rthw e ste rn Banker, March, 1962
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Federal Reserve Bank of St. Louis
of Oquawka, 111. He has served as
executive vice p resid en t since his asso
ciation w ith the b ank about a year
ago. Seth R ichm ond, form er p resi
dent, has been nam ed ch airm an of th e
board.
Mr. W ilcox w as associated w ith
banks in Clear Lake and W in th ro p be
fore going to Illinois.
^
Candidate fo r P resident
C harles H. W alsh, presid en t of th e
F a rm e rs &
M erchants Savings Bank, T
B urlington, has announced his candi
dacy for election as p resid en t of th e
Iow a B ankers A ssociation at th e state
convention Octo- *
b er 21-24, 1962.
Mr. W alsh re
ceived th e su p
p o rt of G roup 11
a t th e ir m eeting *last m onth in th e
form of a resolu
tion w hich w as
p a s s e d u n a n im ously.
S ta rtin g h is
b a n k i n g career
w ith th e F a rm e rs & M erchants Sav
ings B ank in 1935, he has served in ^
various capacities in th e bank, and in
1950, he w as elected presid en t of his
in stitu tio n . He serves as a director of
his own bank, as w ell as of the W est
B urlington Savings Bank.
Mr. W alsh served as vice president
and tre a su re r of th e Iow a B ankers As
sociation in 1958-59. He has also served
on n um erous com m ittees for th e State
A ssociation, and he is c u rre n tly secre
ta ry of Group 11.
He is now serving a three-year term
as executive councilm an of th e Amer- -V
ican B ankers A ssociation, having been
elected in 1960. In 1955-56, he served
as state vice presid en t of th e ABA.
Iowa News
107
1 9 6 3 ABA Candidate
A n Iow a b a n k e r w ho h as been a
long-tim e w o rk e r is th e ra n k s of th e
A m erican B an k ers A ssociation’s com
m ittees is Jo h n B.
K eeline, p resid en t
of C entral T ru st
and S a v i n g s
B a n k , Cherokee,
and p re sid e n t of
th e R u th v e n State
B ank, R uthven.
Mr. K eeline has
a c c e d e d to th e
w i s h e s of his
frien d s and has
J. B . K E E L I N E
becom e a candi
date for th e tre a su re rsh ip of th e ABA
a t th e election to tak e place in 1963.
Mr. K eeline has served tw o y ears
as state vice p resid en t for Iow a for
th e ABA, and he has also served four
y ears as regional vice p resid en t of th e
ABA organization com m ittee. H e has
also served tw o y ears as ch airm an of
th e organization com m ittee of th e
ABA.
In 1961, he w as elected to th e ex
ecutive council of th e ABA and for
th is year he has been appointed by
th e ABA p resid en t to serve on th e
state legislative com m ittee of th e
ABA.
Mr. K eeline is w idely-know n am ong
th e m em bers of th e A m erican B an k ers
A ssociation, and his y ears of service
to th e ABA m ake him th o ro u g h ly
acquain ted w ith its o rganizational
w orkings. He is, of course, w ell-know n
am ong th e b a n k e rs of Iowa, hav in g
served as th e ir A ssociation’s vice p re si
d en t-tre a su rer in 1954 and as its p re si
den t th re e y ears ago. I t goes w ith o u t
saying th a t Mr. K eeline w ill have th e
solid su p p o rt of th e b a n k ers of Iowa.
B u ild in g Firm A ppointm ent
H. C. E rk m a n n h as been appointed
to th e b an k sales force of B ank B uild
ing and E q u ip m en t C orporation, St.
L o u is , according
to E a rl T. Klein,
v ic e p r e s i d e n t
a n d s a le s m a n
ager.
M r. E r k m a n n
has been w ith the
firm s i n c e Nov e m b e r, 1956,
serv in g as a sales
m an in th e com
m ercial design di
H . C. E R K M A N N
vision. A fter com
p leting a specialized tra in in g period,
he w ill re p o rt to th e com pany’s
b ran ch office in Chicago, w h ere he w ill
w ork u n d e r th e su pervision of S. L.
F isher, ce n tra l division sales m an
ager.
WE CALL IT
"LIVE STOCK TERRITORY”
T h e p ictu re has ch an ged sin ce
w e w ere th e first b an k around
C h ica g o ’s Stock Y ards and fe e d
ers b eat a steady p ath to ou r d oor.
c o n t in u a lly "out in t h e T e r r i
tory’’ assisting our ban k er frien d s
w ith th eir prob lem s.
W e d o n ’t w a it for th e cu sto m er
to c o m e in a n y m o re. W e ’re ou t
d o in g b u s in e s s w it h th e f if t h
g e n e r a tio n o f th ese fine fa m ilie s
— th r o u g h their lo ca l banks.
I f y o u are lo c a te d in " L iv e
S tock T erritory’’, or in n e ig h
b orin g states, w e w o u ld lik e to
e x p la in ou r C o rresp o n d en t Serv
ices to yo u . D rop us a lin e , w o n ’t
you? O r p h o n e Y A rds 7 -1 2 2 0 .
O u r rep u ta tio n for service has
acq u ainted us w ith several h u n
dred b anks to w h o m w e p rovid e
all th e ele m e n ts th a t m ak e up an
e x c e lle n t c o r r e sp o n d e n t p ro
gram . M em b ers o f ou r C orre
s p o n d e n t B a n k in g T e a m are
W e tak e a great d eal o f pride
in k n o w in g and d o in g bu sin ess
w it h so m a n y f in e p e o p le in
"Live Stock T erritory’’, and in
th e r e s p e c t t h e y h a v e fo r th e
fa m o u s o ld B a n k at th e C h i
cago Stock Yards G ate.
—!
S T/ie
LIVE STOCK
4150 South H oiste d Street, C hica g o, III.
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n
J
S E R V IN G A G R IC U L T U R E A N D IN D U S T R Y
FOR O V E R N IN E T Y Y EAR S
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
108
Iowa
News
IN T E R IO R V IE W of th e n e w ly re m o d e le d in te rio r o f th e old
B a n k e rs T ru s t C om pany lo b b y is show n a t le ft. T h is p o rtio n
of th e b a n k now houses th e co m m ercial lo an a n d c o rre sp o n d e n t
d e p a rtm e n ts. A t c e n te r is th e new office fo r th e in s ta llm e n t
lo an d e p a rtm e n t on th e second floor. A t r ig h t is th e t r u s t d e
p a rtm e n t.
Special guests included: Mrs. B. F.
K auffm an, w ife of the b a n k ’s first
president; Clay Stafford, state su p er
in ten d en t of banking; M. L. A braham son, tre a su re r of Iowa; city officials
and directors of the bank.
C yrus D. K irk, vice presid en t in
VER 300 b a n k ers and th e ir w ives bank. The floor is Italian terrazzo, charge of th e correspondent banking
cam e to Des M oines last m onth
and th e colorful panel w all is a screen d ep artm ent, aided by his associate,
from some 62 cities and tow ns aroundof birch, redw ood and m ahogany, con H om er R. Jensen, a ssistan t vice presiIowa to atten d a special open house at tain in g plaques indicating the b a n k ’s dent, m ade the arran g em en ts for outthe beau tifu l new hom e of th e B ank m any diversified services. Individual of-town guests. The new correspond
ers T ru st Company.
custom er counters of different heights en t banking d ep artm ent, located on
C onstruction of th e new b an k build are a u nique feature.
the first floor off the m ain lobby of th e
ing w as sta rte d in 1959 and com pleted
J.
W. H ubbell, chairm an of the new building, w as included as a p a rt
in late 1961. G uests had an o p p o rtu board, acted as “m aster of cerem onies” of the tour.
n ity to to u r th e v arious d ep artm en ts at a special social hour and banquet,
G row th of the b an k has continued
of th e b an k a fte r reg isterin g in the held for th e b a n k ’s guests at H otel
strik in g lobby of th e m ain ban k in g
Savery. Scott C. Pidgeon, president,
ON THE COVER
floor (show n on th e fro n t cover). E x gave a brief h isto ry of th e bank, ex
J.
W. Hubbell, ch airm an of the
tending a half city block w ith en plain in g th a t it w as organized in 1917, board of the B ankers T ru st Company,
tran ces at th e fro n t and re a r the lobby and originally located a t F ifth and is show n on the fro n t cover w ith th e
rep rese n ts the functional sty lin g and W alnut. In 1919, th e b ank m oved to m odernistic m ain lobby in the b an k ’s
good ta ste to be found th ro u g h o u t the
its p re se n t location at at Sixth and
new building.
Itnnliers Trust
ttprnini/
In ISeuutiiul New tfuurt ers
O
b
y
W
^
i.
*
L E F T : F ro m l e f t : R obert K. Popple, v.p., B k rs. T r. Co., D es
M oines; Ben E. Sum m erwill, v.p., Io w a S t. B k. & T r., Io w a
C ity. R IG H T : Hom er Jensen, a.v .p ., B k rs. T r. Co., D es M o in es;
N o rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
E rnest A. K enny, v.p., B u rlin g to n B k. & T r .; T. H. Sw iler, v.p.
& cash., B u rlin g to n B k. & T r. Co.; W. H. Sw iler, pres., B u rlin g to n B k. & T r., a n d Crawford C. H ubbell, B k rs. T r. Co., D.M .
Iowa
News
109
4
L E F T : F ro m l e f t : S cott C. P id geon , p res., B k rs. T r. Co., Des
M oin es; R. J. Sw anson, p res., C itiz e n s S t., C la rin d a ; John B.
M onahan, v.p., B k rs. T r. Co., D es M oines. C E N T E R : M ilton F.
Darr, Jr., exec, v.p., L a S a lle N a tl., C hicag o ; Mrs. Darr; Jam es
W. H ubbell, chm., B k rs. T r. Co., D es M oines. R IG H T : L. M.
L anning, v.p., C ity S t., M a d rid ; E. W. M organ, exec, v.p.,
C om m ercial N a tl. B k. & T r., K n o x v ille ; Cy K irk, v.p., B k rs.
T r. Co., D es M oines.
over the years, and at year-end depos
its w ere listed at $89,958,000. Offices
are m ain tain ed by th e b an k in G rim es
and W indsor H eights. A q u a rte r block
p ark in g lot, located a t th e re a r en
tran ce of th e new b uilding in dow n
tow n Des Moines, is operated by th e
bank.
M u scatin e
F. W a rre n Allen, vice p resid en t of
th e M uscatine B ank & T ru st Company,
has been elected
p resid en t to suc
ceed th e late B y
ro n L. McKee.
The b an k has
a l s o announced
five o th er execu
tive prom otions.
H arold L em kau,
from
a ssista n t
v i c e p resid en t
and cashier to
F. w . A L L E N
executive v i c e
A d v a n ta g e s o f th is D ro v e rs S h ip p e r’s O rd er w ill be g la d ly e x p la in e d to 'Io w a
b a n k e rs b y Bernard D. M iller (a b o v e ), a s s is ta n t v ice p re sid e n t.
IMMEDIATE CREDIT
on L ivesto ck P roceeds
Your custom ers can save tim e and effort by having D rovers collect
the net proceeds from th e ir livestock sales and tra n s fe r them to
th e ir accounts in your bank.
W ithin m inutes a fte r the sale is completed, a D rovers “Yellow
Boy” is on its w ay to you . . . m aking the funds available to
your custom er from one to th ree days earlier th a n usual.
Be sure your livestock custom ers enjoy th is faste r, m ore de
pendable service. Have them fill out a D rovers S hipper’s O rder.
W e’ll gladly send a supply. W rite B ernie M iller today a t:
H. E. L E M K A U
G. D. N E L S O N
president; Carl Spaeth, vice p resident;
George S pringborn, from a ssista n t vice
p resid en t and tr u s t officer to vice
presid en t and tr u s t officer; R ich ard A.
Schultz, from a ssista n t vice p resid en t
to a ssista n t vice p resid en t and cashier,
and G erald D. Nelson, from a ssistan t
cashier to a ssista n t vice p resid en t and
m anag er of th e in stallm en t loan de
p artm en t.
^Droverskanlis
Drovers National Bank • Drovers Trust & Savings Bank
UNION STOCK YARDS, CHICAGO 9, ILLINOIS
MEMBERS, FEDERAL DEPOSIT INSURANCE CORPORATION
N o rth w e ste rn Banker, March, 7962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
110
lies Moines News
th e larg est to date. On D ecem ber 31, a
1961, $86,000 had been d istrib u ted to
form er em ployees and th e ir benefici
aries, and th e m a rk e t value of assets
in th e fund w as $565,714. Seventy- ^
th re e em ployees are m em bers of the *
b a n k ’s profit sh arin g plan, b u t em
ployees m ake no co n trib u tio n to th e
fund.
Mr. M acom ber atten d ed last m o n th ’s 'r
M id-W inter T ru st C onference in New
Y ork City.
P erry
American Institute of Banking
CANASTA and bridge p a rty for
A IB w om en has been planned
for M arch 12 a t th e E lk s Club.
T he A nnual H igh School R elations
Day is set for M arch 22. F iv e seniors
from each of th e Des M oines high
schools w ill v isit one of five banks
d u rin g th e day. P a rtic ip a tin g b anks
are th e B an k ers T ru s t Com pany, Cap
ital City State B ank, C en tral N ational
B ank and T ru st, Iowa-Des M oines N a
tional and th e V alley B ank and T rust.
A b an q u et is to be held at 6 p.m. a t
th e H otel K irkw ood and all AIB m em
bers are u rg ed to atten d .
T he m o n th ly speech club m eeting
for M arch is to be a t 6:30 p.m., M arch
26, a t Y ounkers, th ese an n ouncem ents
being m ade by M ary H iddleson, IowaDes M oines N ational.
* * *
Robert Perkins, 65, head teller u n til
his re tire m e n t in Septem ber, died last
m onth. W ell know n to all at th e bank,
his passin g w as noted w ith re g re t
th ro u g h o u t th e v ario u s departm en ts.
He had been w ith the b an k 45 years.
Larry Chemberlin, com ptroller, dis
cussed “R evolution in B ank A ccount
in g ” before m em bers of th e Des
Moines C hapter, N ational A ssociation
of A ccountants a t th e ir recen t m o n th
ly technical m eeting.
Robert A. Krone, business develop
m en t d ep artm en t, w as a sp eaker at
A
last m o n th ’s “C areer C onference” at
th e State U n iv ersity of Iowa, Iowa
City.
* * *
National Bank of Des Moines
C. Robert Brenton, Dallas Center,
p resid en t of B renton Bros., Inc., has
been elected a d irector of th e bank.
* * *
N orthwest Des Moines National
Richard Toon, fo rm erly sales m an
ager in Des M oines (10 years) for th e
A m erican Republic In su ran ce Compa
n y and m ost recen tly a real estate bro
ker, has been elected an a ssistan t cash
ier.
* * *
South Des Moines National
Carma J. Overmeyer, w ith the bank
since its opening in May of 1958, has
been elected assista n t cashier.
* * *
Valley Bank and Trust Company
J. Locke Macomber, vice p resident
and tr u s t officer, V alley B ank and
T ru st Company, recen tly announced
th a t th e b an k had co n trib u ted $53,800
of its 1961 profits to th e V alley B ank
Profit S haring T ru st F und. The an
n ouncem ent w as m ade at a coffee for
directors, officers and em ployees held
in the b an k lobby after b anking hours.
The profit sh arin g plan w as estab
lished in 1949 w ith an in itial co n trib u
tion of $18,000. The b an k has now
co n trib u ted a to tal of $460,800, includ
ing th e 1961 co n trib u tio n w hich w as
"Strong friend o f the
^Independent Banker!
fit M A R Q U E T T E
O F
M IN N E A P O LIS
¿ S w e ñ & t, a £ /trfo A q u Ä ffji,
IEMBER FEDERAL OEROSIT INSURANCE CORPORATION
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Fiderai
3-5411
g
Thom as R. Sm ith, executive vice
p resid en t of th e F irs t N ational Bank,
has been nam ed “Boss of th e Y ear” by
th e P e rry Ju n io r C ham ber of Com
m erce.
'
H icev ille
R ussell L. Noble has been nam ed
a ssistan t cashier of th e Riceville S tate
Bank, according to P au l Bringgold,
president.
Mr. Noble, 36, has had seven y e a rs’
ban k in g experience. He w as raised on
a farm , and is p resen tly engaged in
cattle feeding.
V
R ichland
F a y B. Schultz, cashier of th e Union Y
S tate Bank, has been nam ed president
of th e bank, succeeding Mrs. H elen B.
Jones of O ttum w a. Mr. Jo nes w ill re
m ain as a m em ber of the board. R alph ^
Steel w as prom oted from a ssistan t
cashier to cashier.
R o c k fo r d
T he F irs t S tate B ank has moved
into its new m odern banking home, ac
cording to T. Edw. B atty, president.
The new stru c tu re is a one-story
brick, 76 by 41 feet. A drive-up w indow
is located on the w est side of th e build
ing. T here is also a n ig h t depository.
The in terio r featu res a spacious lob
by w ith five teller w indow s; and offi
cers’ area, and tw o p riv ate offices. The
w alls are paneled w ith w alnut.
:
'
A
R uthven
The R u th v en S tate B ank has m oved
into its new glass fro n t brick building,
tw o blocks south of th e form er stru c
tu re, w hich w as occupied for 65 years.
The in terio r contains w aln u t paneling,
and new fu rn itu re has been installed.
Jo h n K eeline of C herokee is president.
W illiam B ren n an is cashier.
St. Ansgar
Donal R. H alvorson, executive vice
president, rep o rts th a t to tal footings
of the St. A nsgar C itizens S tate B ank
reached an all-tim e high of over $4 m il
lion at year-end. C apital w as increased
from $75,000 to $125,000, m aking total
capital stru c tu re of over $320,000.
^
r
Ill
AILÏLUA ÍBAMOS
jm iD )
W alnut at Fourth
Des Moines, Iowa
F .D .i.C .
No rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
112
Iowa
News
M ake Sacinifs Itomi ¡tepori
- m ~
F E A T U R E D on th e
“ F re e d o m B o n d D riv e ”
p ro g ra m w ere, fro m
l e f t : H. L. Ollenburg,
pres., H a n c o c k Co.
N a tl., G a rn e r; Elm er
L. R ustad, n a t i o n a l
sales d ire c to r, U. S.
S a v in g s B onds, W a s h
in g to n , D. C.; a n d
M arvin M. Schm idt,
v o lu n te e r s ta te c h a ir
m an, U. S. S a v in g s
B onds, D es M oines.
Iow a b an k ers at v o lu n teer w o rkers from all of Iow a’s
a nation-w ide m eeting of v o lu n 99 counties, Mr. O llenburg gave re
tee r savings bonds w o rk ers in W ashpo rts on tw o talk s delivered at the
ington, D. C., recen tly w ere Charles natio n al m eeting. M arvin M. Schm idt,
H. W alcott, p resid en t of th e Iow a v o lu n teer state chairm an, said Iow a’s
B ankers A ssociation and p resid en t of quota for the Freedom Bond D rive has
S ecurity N ational B ank, Sioux City, been set at $78,104,000. The drive w ill
and H erb L. O llenburg, p resid en t of be held du rin g May and June, w ith all
H ancock C ounty N ational B ank at sales th e first six m onths counting in
G arner. T hey w ere p a rt of a large th e quota. Ja n u a ry sales accounted
group from Iowa at th e conference.
for $15,023,967 or 19 p er cent of the
A t a la te r m eeting in Des Moines of quota.
e p r e s e n t in g
R
Sibley
The Iow a B usiness In v e stm e n t Cor
poration of Storm Lake has announced
the pu rch ase of th e controlling in te r
est in th e Sibley State Bank. P resen t
officers w ill continue to m anage the
bank.
The b an k has resources of m ore
th a n $4 m illion, and its officers include
C hairm an R. M. Y appen and P resid en t
F red F olkers. P ro p e rty w as recently
purchased by th e b ank a t E ig h th
S treet and F o u rth A venue for possible
use in co n stru ctin g a new building.
The in v estm en t firm is headed by
P resid en t W endell Pendleton of Storm
.Vf'fr Itniltlinif
Lake. H is firm also m ade a su b stan
tial in v estm en t in P ioneer Finance
Com pany of Lincoln, Neb. The firm
also ow ns H u n te r Ind u stries, a bed
m an u factu rin g concern in Des Moines.
Sheldon
Clifford V ander W ilt w as prom oted
from a ssistan t cashier to cashier of
th e Citizens State Bank, according to
K eith Campbell, president. Mr. V ander
W ilt joined the bank M arch 15, 1961.
Stacyville
W. J. Schrandt, cashier of the Stacy
ville Savings Bank, has been elected
to the board of directors, increasing
the nu m b er on the board to six.
T he b an k recen tly increased its
capital from $25,000 to $50,000.
Steam boat R ock
A nnual m eeting for th e F arm ers
Savings B ank w as postponed one w eek
th is year due to th e fu n eral of th e
g reat g ran d d au g h ter of th e p resident
of th e bank. The child w as fatally in
ju re d in an auto accident.
Stockport
Jo S. Stong has been nam ed vice
p resid en t to replace Craig Ruby, w ho
has retired.
H arold H. Johnson, m anager of the
Van B uren County ASC office at Keosauqua, has been nam ed a new direc
tor, tak in g th e place of Craig R uby on
the board.
Tabor
Glen P. W e a t h e r h e a d has been
elected vice p resid en t of The F irs t
State Bank, succeeding C. M. Rodm an,
retired. Mr. R odm an w ill rem ain on
the board of directors.
V inton
A lfred A. H appel, vice presid en t and
cashier of th e B enton C ounty B ank
and T ru st Company, has been elected
to th e board of directors.
W aterville
P lans are being m ade for the F a rm
ers and M erchants Savings B ank to
move to W aukon in accordance w ith
the approval gran ted by the state su
p e rin ten d en t of banking. An office
w ill be m aintained in W aterville.
A location for the new bank in W au
kon is being determ ined, and building
plans w ill be announced w ith in the
near future.
FMason Fit if
W alnut
Mrs. M arie M ertz has been elected to
th e board of the W aln u t S tate Bank,
replacing th e late F ra n k P. B rennan.
W ellsburg
Sim on S n ittjer has been elected a
m em ber of the board of th e Peoples
Savings Bank, replacing E v e rt Boyenga of Cleves.
W ilton Junction
A R C H ITEC T’S SK ETC H of n ew b u ild in g p la n n e d in M aso n C ity.
N EW b ank building for Mason
City in 1962 w as announced re
cently by R. H. Isensee, p resid en t of
th e U nited H om e B ank & T ru st Com
pany.
A
N o rth w e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C onstruction w ill s ta rt about A pril
1 on a site a t W est S tate and W ash
ington Streets. I t w ill face C entral
P a rk and be ready for occupancy in
Decem ber.
Jo h n S. Zdychnec has been pro
m oted from a ssistan t vice presid en t to
executive vice p resid en t of th e W ilton
Savings Bank, according to H arold G.
Nicolaus, president.
Gale N elson has been nam ed as a
new director, replacing th e late A. J.
W acker.
Iow a
GROUP
News
113
1 . . .
(C ontinued from page 104)
Dr. B utz advised th a t one of th e
g reat challenges facing A m ericans is
to see th a t th e econom y is n o t dom i
nated by g o v ern m en t and th a t gov ern
m en t helps ra th e r th an displaces p ri
vate en terp rise.
Tilford C. Gaines, vice president,
F irs t N ational B ank of Chicago, spoke
on th e topic “B ank Portfolio M anage
m en t,” ex plaining how to im prove
b an k incom e co n sisten t w ith liquidity
and safety. H e suggested th a t each
b ank should c h a rt m ovem ents of th e ir
dem and and tim e deposits, as w ell as
of th e ir v ario u s types of loans. Such
an analysis, he said, w ould help to
provide am ple m oney for liquidity and
aid th e m in placing th e balance of
th e ir in v estm en t funds in m ore profit
able channels. He w arn ed th a t th e
p ay m en t of 4 p e r cent on tim e m oney
should have no b earin g on pro p er
handlin g of an in v estm en t portfolio,
and th a t b an k s should n o t get th e m
selves involved in frozen portfolios.
C harles H. W olcott, p resid en t of the
Iow a B an k ers A ssociation and p re si
den t of th e S ecurity N ational Bank,
Sioux City, u rg ed all b an k s to have
adequate in te rn a l au d it procedures.
“Be co n stru ctiv e w ith y o u r lend
ing,” he advised. “Make y o u r decision
on w h e th e r you w a n t to pay th e in
creased perm issive ra te on savings
and tim e m oney based on sound ju d g
m en t and a careful analysis of w h e th
e r you can afford it.”
WERE
CELEBRATING
FIFT Y YEARS of coop
eration w ith correspondent
banks. D uring th is tim e we
have freely p u t our banking
experience and financial-in
d u strial “know-how” a t th e
disposal of bankers in the
T ri-S tate Area.
May we begin . . . NOW
. . . to do th e sam e fo r you ?
o
p
H. P. K nuth, ch airm an of G roup I
and p resid en t of th e H olstein State
Bank, presided over th e aftern o o n ses
sion. Clay Stafford, state su p e rin te n d
e n t of banking, app eared on th e p ro
gram , suggesting th a t th e legislature
should give th e b an k in g b oard a u th o r
ity to ad ju st salary ceilings and to
establish a re tire m e n t plan for exam
iners. F ra n k W arn er, se cretary of th e
IBA, also addressed th e m eeting.
Joe H. G ronstal, p re sid e n t of th e
C arroll C ounty State Bank, m ade a
special appearan ce on th e p ro g ram for
th e purpose of describing th e im p o r
ta n t w ork being done by th e N ational
A ssociation of State B ank S upervisors.
H e suggested th a t each b an k give se ri
ous consideration to w ard becom ing an
associate m em ber. The organization
advocates rem oving th e C om ptroller
of th e C urrency from th e board of th e
F ed eral D eposit In su ran ce C orpora
tion. T he co m p tro ller’s office has in
dicated ap p ro v in g b ran ch es for n a
tional b an k s and bypassin g state ju
risdiction.
American Trust
and Savings Bank
D U B U Q U E , IOW A
M em ber FD IC and FR S
SERV IN G TH E N E ED S OF TH E TRI-STA TE AREA
N o rthw estern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
iowa
114
News
Observes 50th Anniversary
The Sioux City area has also gained
as a m eat slau g h terin g center, ra n k
ing th ird in th e nation in th is capac
ity.
A
Lawler to R em odel
V incent Kelley, p resid en t of th e
State B ank of L aw ler, has announced
plans for a com plete in te rio r rem odel
ing job. T he K irk Gross Com pany of
W aterloo is th e contractor.
1 9 6 1 Savings Bonds Sales
H ighest In T hree Years
O FFIC IA L S of the Toy National Bank, Sioux City’s oldest bank, gathered for refresh
ments at an open house last month to observe the bank’s 50th year.
Left to right standing, are C arleton C. V an D yk e, president; C. A. Johnson, vice presi
dent and oldest employee in years of service; M iss Sarah K irby, daughter of one of
the original directors, D. E . K irby, and J. W illiam V an D yk e, chairman of the board.
Pouring coffee is M ary L ee Brown.
The bank opened as the National Bank of Commerce under a charter issued February
12, 1912, and has served Siouxland without interruption since then. Name was changed
in 1922 to the Toy National bank, in honor of the founder, Jam es F. Toy, who founded
his first bank at Storm Lake, Iowa, in 1873. The Toy is affiliated with the Farmers
Loan and Trust Co., which at 79 years is Iowa’s oldest trust company.
R eveals 1 9 6 1 Growth
The cred it life division of th e In
vestors Life In su ran ce C om pany of
Iowa, Cedar Rapids, had $15 m illion
M. F. Kurt
BANK
EXECUTIVES
M. F. K urt, p resid en t of the Cascade
State B ank, died last m onth. S urvi
vors include his son, R obert E. K urt,
cashier of the bank.
“L eaders C hoose Leaders”
TO P
MEN — A t
C a d illa c
has the
best a v a ila b le
w idest
positions
field — positions
with grow th
every
level
know th a t
choice
in th e
throu ghou t
o f the
banking
the
nation
organizations offering
chal
lenging work and to p earning p o te n tia l.
L E A D IN G
B A N K S — Be
they
large
or
small, know th a t C a d illa c 's 35 y e a r rep u
ta tio n has been b u ilt on e ffec tiv e co n fi
d e n tial service to the em p lo y e r looking
fo r th e rig h t man.
B O T H T O P M E N A N D L E A D IN G B AN K S
— know
th a t
th e ir
confidence
is
of in su ran ce in force at year-end, as
com pared to $5 m illion a year earlier,
according to Tom m y Thom sen, vice
p resid en t in charge of credit life.
Siou x City L ivestock
R eceipts Grow
R ay Rodene, p resid en t of th e Sioux
City Stock Y ards Company, has re
p o rted th a t 4,015,979 head of livestock
w ere sold in Sioux City in 1961, m ak
ing th e m ark et th e th ird larg est in the
nation. I t tra ils the leader, Omaha,
and second-place South St. Paul.
well
R ecord AIB M em ership
and professional plac e m en t service.
The A m erican In stitu te of Banking,
educational section of th e ABA, re
ported a to tal m em bership of 158,440
on Ja n u a ry 1, 1962, w ith 64,572 enroll
m ents in AIB classes.
W h atever you r requirem en ts
contact us in absolute
confidence w ith ou t obligation
A R V ID D. J O H N S O N
P erso n a l C onsultant to the B an k in g F ield
Cadillac
Associates, Inc.
29 E a s t M a d is o n B ld g .
C h ica g o 2, 111.
F in a n c ia l 6-9400
* W h e re M ore E x e c u tiv e s F in d T h eir P o si
tio n s Than A n yw h ere E lse in th e W orld.
Banker, M arch,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1962
<
Savings Bond sales in 1961 w ere 4
per cent above th e previous y ear and
w ere th e hig h est in th e p ast th re e
years. A t th e sam e tim e, redem ptions
w ere 10 p er cent below 1960 and w ere
th e sm allest in seven years.
Cash E and H sales totaled $4,539
m illion d u rin g th e p ast 12 m onths.
A ccrued in te re st on ou tstan d in g E
bonds totaled $1,293 m illion du rin g
1961, b rin g in g to tal in v estm en ts for
th e year to $5,832 million.
r
Jo h n B. K im berley, regional direc
to r of th e U. S. Savings Bonds D ivi
sion of th e T re a su ry D epartm ent, re
leased th e 1961 re su lts and gave th e
follow ing in form ation for states in
7$
th e Northwestern Banker area. F ig
ures are com bined sales of Series E
and H Bonds in th o usands of dollars:
1960
1961
State
$ 34,570 t
Colorado ............ . . . $ 37,726
137,455
Iow a .................. . . . 142,878
74,779
M innesota ........ . . . 76,306
20,442
M ontana ............ . . . 20,478
87,230
N ebraska .......... . . . 92,022
22,176
N orth D akota . . . . . 21,507
27,506
South D akota .. . . . 29,482
7,736
7,821
W yom ing ..........
Effective J a n u a ry 2, a univ ersal re
*issue bond w as p u t into use for all re
issue tran sactions, regardless of th e
issue dates of th e bonds to be reissued.
The use of th is new item no longer
req u ires F ed eral R eserve B anks and C"V
branches to m ain tain four separate
designs (paper and p unch card type)
to handle tran sactio n s, including du
plicates of bonds w hich have been
F
lost, stolen, m u tilated or destroyed.
placed with the nation's largest executive
N orthw estern
*
Y
Correction
Total deposits for th e Toy N ational
Bank, Sioux City, as of D ecem ber 31,
w ere $36,309,000, m aking th e b an k th e
seventh larg est in Iowa. F ig u res w ere
listed in co rrectly in th e last issue as
being only $33,309,000.
^
Iow a
News
115
Brothers Manage Bank
T ogether Since 1 9 0 7
F am ily c o m b i n a t i o n s in b anks
around th e n atio n are fairly common.
V ery few b an k in g fam ilies, how ever,
can equal th e record set by tw o b ro th
ers, F ra n k and A rt L indquist.
BRO TH ER S F rank L indquist, le f t, a n d
A r t L ind quist, Sr., a c tiv e in G ow rie since
1907.
W ork in g side b y side a t th e F irs t
N ational B ank in Gowrie since 1907,
F ran k , age 82, serves as presid en t, and
A rt, age 76, serves as cashier. Both
m en are active in th e b an k and in th e
com m unity.
C ooperation in m anaging th e b a n k ’s
affairs has been th e secret of th e ir suc
cess for over 55 years. T h eir te a m
w o rk also p erm its th em to tak e tim e
off occasionally. F o r instance, A rt
m anaged th e b a n k w h en F ra n k a t
tended th e Iow a B an k ers C onvention
last fall. F ra n k re tu rn s th e favor
w h en his you n g er b ro th e r goes to Ce
dar R apids to v isit his son, A rt L in d
quist, Jr., vice p resid en t of th e Mer
ch an ts N ational Bank.
N ext tim e you are in th e Gowrie
area, stop in for a visit. You w ill re
ceive a cordial welcom e, and A rt w ill
probably offer to tak e you n e x t door
and “trim ” you in bowling!
Mrs. G ertrude W iem er
Mrs. G ertru d e W iem er, 78, p re si
den t of th e State B ank of L edyard,
died last m o n th at h e r hom e in L ed
yard.
H er son, W. E. W iem er, is vice
p resid en t and cashier of the L ed y ard
b an k and vice p resid en t of th e Swea
City S tate Bank.
\iFtk Gross Co
BANK REMODELING
W
aterlo
o
, Iow
a
W hen your custom ers’ inventory can be converted
into prime collateral, your bank gains new flex
ibility by extending loan services. Through field
warehousing, St. Paul Term inal W arehouse pro
vides Preferred W arehouse R eceip ts—the bonded
collateral you need for credit extension, beyond
open line lim its. Loan profits increase because you
are able to make more loans, and your inventory
loans become more secure.
St. Paul T erm inal’s security, dependability and
flexibility in field warehousing is unm atched. So
keep the m any benefits of this valuable service
working for your bank . . . contact St. Paul Ter
m inal today!
ST* P A U L T E R M I N A L
WAREHOUSE COMPANY
Offices in p rin cipal cities
425
E a s t 8th Stre e t
•
St. Paul, M in n e so ta
N orthw estern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Banker, M arch ,
1962
116
Iowa
News
T he Bankers’ M arket Place
W ANT ADS
Rates 20 cents per word per
insertion. Minimum: 10 words.
NORTHWESTERN BANKER
306 15th St., Des Moines, Iowa
P O S IT IO N A V A IL A B L E
T w o M illio n D o lla r B a n k in C e n
t r a l N e b r a s k a h a s o p p o r t u n it y f o r
a se c o n d m a n . M u s t h a v e a w ell
ro u n d e d c o u n tr y b a n k e x p e rie n c e .
O p p o r tu n ity f o r lim ite d b a n k a n d
in s u r a n c e a g e n c y i n v e s tm e n t. G ive
e d u c a tio n , e x p e rie n c e , f a m i l y a n d
c h u rc h b a c k g r o u n d in f i r s t l e t t e r .
W r ite B K C % N O R T H W E S T E R N
B A N K E R , 306 1 5 th S t r e e t , D e s
M o in e s 9, Io w a .
W ANTED
Y o u n g e x p e rie n c e d
s a le s -m in d e d
c o m m e rc ia l
lo a n
officer to
be
p r e s i d e n t a n d m a n a g in g officer o f
$16,000,000 b a n k . S u b u rb to la r g e
m id w e s t c ity . S a l a r y o p e n . P o s i
tio n to b e filled im m e d ia te ly . G ood
o p p o r tu n ity , one
th a t dem ands
in it i a t i v e a n d im a g in a tio n . O n ly
th o s e w ith r e a l e n th u s ia s m a n d
d e s ire to w o rk n e e d a p p ly . W r ite
OZT, c/o N O R T H W E S T E R N
B A N K E R , 306 1 5 th S t r e e t , D es
M o in e s, Io w a .
A Page TeBing W hat’s New for Banks and Bankers
E ach m o n th the B a n kers’ M arket Place w ill bring you listings of new
products, specialty item s, banking equipm ent, and gift item s w hich w ill
/
help yo u and yo u r staff do a better job. This is the selection for this m onth.
N EW filing d raw er from the CelF o r in form ation about Div-I-Dex
U-Dex C orporation, New W ind and o th er m aterials and m ethods for y
sor, N ew burgh, N. Y., elim inated the
increased efficiency in y o u r bank,
problem of filing stock certificates w rite th e Cel-U-Dex Corporation.
w hich, because of th e ir shape and size,
are difficult to file in an ord in ary file
SLID IN G autom atic door has
.
draw er.
been introduced by H orton A uto
m atics, Inc., 121 Gibson Lane, Corpus,
C hristi, Tex.
O utstanding featu re of the door is
th a t it provides arch itects w ith new
*
possibilities in design. It is about
one-third th e cost of m ost swing-out
type autom atic doors and enable the
arch itect to specify an autom atic en- K
trance even w hen th e budget is lim
ited. In addition, one door can be
used as b oth en tran ce and exit.
Basically, th e door consists of a
rapidly opening sliding panel. In case *
of pow er failure, no p ressu re is left
in th e system and m anual operation
is restored.
A
A
N E W F IL E U N IT
H O L D U P P R O T E C T IO N
O n e u s e d D ie b o ld d e la y e d - a c tio n
tim e lo ck s a fe , in v e r y g o o d c o n d i
tio n . $150. S t r a u s s L o ck Co., 711
G ra n d A v e ., D e s M o in es 9, Io w a .
Y O U R STATE B ANKERS A S S O C IA T IO N
O F F IC IA L SAFE, V A U L T A N D
T IM E L O C K EXPERTS
F. E. DAVENPORT & CO .
OMAHA
O ften th ere is a tendency for the
certificates to slide dow n in the
draw er, som etim es lodging u n d er o th
er certificates, som etim es becom ing
creased or dog-eared.
T he Div-I-Dex filing u n its contain
sep arate com partm ents, m aking it
easy to locate certificates and keeping
th em u p rig h t and fresh looking. E lim
ination of the follower-block gains sub
sta n tia l space, one d raw er in every
four.
H R E E new system coin tra y s th a t
provide safe, econom ical and ef
ficient coin handling and storage are
being m an u factu red by M ajor Metalfaf, Inc., Chicago, 54, 111. All th ree
types of tra y s of one denom ination
stack and in terlo ck w ith each other.
The th ree types are Dual Purpose,
single layer, w hich holds both loose W
and w rapped coins; Rolled Coin, sin
gle layer, w hich holds specific am ounts
of rolled coin for stacking and sto r
ing; E x tra Capacity, for rolled coin,
w hich is a deep, large capacity box
for storage. Slots are a t each end for
easy checking of contents.
T
'"Y
^
■M
ESTABLISHED
V
|8 8 9
7
W
?
S T A T IO N E R S
BOOK B IN D E R S
OFFICE O U T F I T T E R S ^ - ^ ^ ^ ' B U S I N E S S MACHINES
G ra n d A v e . a t Fo u r t h
y
D e s M o in e s , I a .
OFFICE FORMS
BOUND BOOKS
CATALOGS
RULED FORMS
COLOR PRINTING
LOOSE LEAF
WIRE BINDING
\m ) County and
Municipal Supplies
N o rthw estern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OUTSTANDING CHOICE ^
W K OF OUTSTANDING BANKERS
___________
The bank newsletter fo r m odern agricultu re
— providing an excellence o f q u ality th a t
elevates bank prom otion to the full service
level. Preferred by 8 out o f 10 farm ers b e
cause it helps with th e ir "m oney m atters."
the FARM PICTURE
Dept. 43
P.O. Box 221
Urbana, III.
D IG IT E X , new, m agical, invisible, fin gertip p e r makes it easy to count bills and coins,
collate papers, riffle pages of newspapers or
books. A boon in banks. Reduces " d ip and
count" motions. C leanliness and cosmetic
action appeals to women tellers, especially!
G r e a t for Bowlers, G o lfers, and in other
sports. N on-sticky, easy to wash or wipe off,
leaves hands soft and smooth. In pretty
plastic box, 3" x 2", I" d e e p . $1 a box,
po stp aid.
6 fo r $5.
C E L -U -D E X , N E W
W IN D S O R , N E W B U R G H , N . Y.
V
'T
Iow a
News
117
O pen L ondon Branch
C ontinental Illinois N ational B ank
and T ru st C om pany opened its L on
don b ran ch M arch 1, D avid M. K en
nedy, board chairm an, said in Chicago.
Located at 58-60 M oorgate S treet, a
few m in u te s’ w alk from th e B ank of
E nglan d in th e cen ter of L ondon’s
financial district, C o n tin en tal’s b ran ch
will offer full com m ercial b anking
services w ith com plete deposit and
lending facilities.
“The b ra n c h ,” Mr. K ennedy said,
“will serve our A m erican custom ers
having plants, rep resen tativ es, and in
v estm en ts in th e U nited K ingdom or
on the C ontinent, as w ell as our do
m estic and overseas co rresp o n d en t
banks.
“W ith th e pro b ab ility of th e U nited
K ingdom becom ing a p a rtn e r in th e
E u ro p e a n Common M arket, we expect
London to becom e still m ore im p o r
ta n t as a financial c en ter,” Mr. K en
nedy said.
Low F oreclosu re Kate
lu N.W . Banker Area
D elinquency ra te s on hom e m o rt
gages continue to d rift u p w ard to new
highs according to th e 1961 N ational
D elinquency S urvey of th e M ortgage
B ankers A ssociation of A m erica.
W hile th e to tal nu m b er of loans
g ran te d by th e 400 re p o rtin g firm s
increased by 55,655, from a 1960 to tal
of 2,742,961 to a 1961 to tal of 2,798,616,
to tal n u m b er of delinquencies in
creased by 27,638, from a 1960 total of
77,106 to a 1961 to tal of 94,744 (a de
linquency p ercentage rise of 2.81 in
1960 to 3.10 in 1961). The to tal n u m
ber of in-foreclosures in 1961 totaled
8,106.
Iowa, N e b r a s k a , N o rth Dakota,
South D akota, M innesota and T exas
rep o rted th e low est ratio of in-fore
closures in th e nation.
B ooklet On M oney
N early 5,000,000 copies of th e F o u n
dation for C om m ercial B an k s’ 12-page,
full-color booklet, en titled “H ow to
Make th e Most of Your M oney,” have
alread y been ordered by 1,600 com
m ercial b anks from every state of th e
Union.
The booklet w ill be published as a
rem ovable in se rt in th e M arch 17 is
sue of The S atu rd ay E v en in g Post,
th ro u g h w hich appro x im ately 7,000,000
copies w ill be added to th e local dis
tributio n .
B anks are p lan n in g to d istrib u te th e
booklet as sta te m e n t enclosures to
paid-up tim e cred it custom ers, as
pick-up pieces in lobbies, as a d v e rtis
ing w rite-in item s and in m an y o th er
ways.
5 0 th ANNUAL FINANCIAL STATEMENT
EMPLOYERS MUTUAL
CASUALTY COMPANY
H o m e Office
2 1 0 S eventh Street
D es M oines
C ondensed Statem ent as o f D ecem ber 3 1 , 1961
D IR E C T O R S
JO H N F . H Y N E S
C hairm an o f the Board
D e s M o in e s, Io w a
JO H N W . G U N N
P resid en t, T reasurer
D es M o in es, Io w a
M. J. W IL K IN S O N
E x ec. V ice -P resid en t
D es M o in e s, Io w a
ROBB B. K E L L E Y
V ice -P res., Secretary
D e s M o in es, Io w a
W . Z. PR OC TOR
G en era l C o u n sel
D e s M o in es, Io w a
W . J. H Y N E S
C laim s C o u n sel
D es M o in e s, Io w a
F. E . BELLAM Y
P resid en t, C o n crete M aterials
D iv ., A m erica n M a rietta C o.
C ed ar R a p id s, Io w a
E . C. B O O T H
Secretary-T reasu rer
L en n o x In d u stries, In c.
M a rsh a llto w n , Io w a
W . HAROLD BRENTON
P res., B ren to n C om p an ies
D e s M o in e s, Io w a
H JA L M A R H JE R M S T A D
P res., C itiz en s F und
R ed W in g , M inn.
G E O R G E A. M O R R E L L
Form er D irecto r,
John M orrell & C o.
O ttu m w a, Io w a
CARL M U ELH A U PT
P res., C en tral S erv ice Co.
D e s M o in es, Io w a
JO H N D . S T O D D A R D
P resid en t
S todd ard D e v e lo p m e n t C o.
D es M o in e s, Io w a
R. W . W E IT Z
C hairm an
T h e W e itz C o m p a n y , In c.
D es M o in e s, Io w a
ASSETS
Bonds ......
$39,356,095.68
N o b o n d s o w n e d b y th e C o m p a n y h a v e
e v e r b e e n in d e f a u l t e i th e r a s to in
t e r e s t o r p r in c ip a l.
Stocks—M arket Value ................... 10,163,212.00
Mortgage Loans—FHA Insured ....
381,085.92
Real E state—Home and Branch
Office Buildings .............................. 1,551,902.04
Cash in Banks ........................
3,230,726.89
Premiums Receivable—not past due 4,202,169.50
Interest Accrued and Other Assets 1,152,748.62
Total Admitted Assets ___ __ $60,037,940.65
R ESER V ES
Reserve for Claims ............................$23,016,318.00
Funds
lo sses.
set
a s id e
to
pay
a ll
in c u r r e d
Reserve for Unearned Premiums .... 19,035,797.14
F u n d s s e t a s id e to r e t u r n to e v e ry p o l
ic y h o ld e r th e u n e a r n e d p r e m iu m
in
e v e n t o f c a n c e ll a ti o n .
Reserve for Taxes ...........................
1,363,682.62
S ta t e a n d F e d e r a l T a x e s .
All Other Reserves .................
1,605,010.09
I n c lu d e d in th i s re s e r v e is a s u ffic ie n t
a m o u n t to p a y 1961 d iv id e n d s o n a ll
p a r t i c i p a t i n g p o licie s.
Total Reserves ............................$45,020,807.85
Guaranty Fund ..... $ 750,000.00
Reserve for
Contingencies __ 1,250,000.00
Reserve for Security
Fluctuations .......
500,000.00
UNASSIGNED
SURPLUS ......... 12,517,132.80 15,017,132.80
R. W . W O O D , M .D .
D irecto r
N ew to n N a tio n a l B ank
N e w to n , Io w a
$60,037,940.65
BRANCH OFFICES
A lb u q u erq u e, N . M. • A lliance, N eb. • A u stin , T ex as • C h a rlo tte , N . C.
• C hicago, 111. • D allas, T ex as • D enver, Colo. • Des M oines, Iow a •
D e tro it, Mich. • H ouston, T e x a s • Jeffe rso n C ity, Mo. • K a n sa s C ity,
Mo. • L an sin g , M ich. • L ittle Rock, A rk . • M erria m , K a n s. • M il
w aukee, W is. • M inneapolis, M inn. • O m aha, N eb. • P h ila d e lp h ia, P a . •
P hoenix, A riz. • S t. Louis, Mo. • S a n A ntonio, T e x a s • Sioux C ity, Iow a
• S p rin g field , Mo. • V ancouver, B. C. • W ich ita, K ans.
A u to m o b i le , P la te G la ss,
W o r k m e n s C o m p e n s a tio n ,
F ir e a n d I n la n d M a r in e
G e n e r a l L i a b i l i t y In su r a n c e ,
H e a lth & A c c id e n t, B u r g la r y ,
F i d e l i t y a n d S u r e ty B o n d s
A NATIONAL INSTITUTION
No rthw e ste rn Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
118
-r
¥
I
Patience Personified
F a th e r (w heeling how ling baby) :
E asy now, D anny. K eep calm. Steady
there, Danny. I t ’s okay, D anny boy.
P a s s e rb y : My, you’re patient w ith
that child. W h a t’s the m atter with
little D anny?
F a t h e r : H e ’s Christopher.
I ’m
Danny.
S to p Counting
M an (to friend) : It sure is tough
grow ing old alone. M y wife hasn’t
had a birthday in six years.
Big Im provem en t
Y o u ’ll have to adm it that today’s
short skirts make men look better.
T im e Ran O ut
A sk a S tu p id Q uestion .
W o m a n : I can’t stand my husband.
H e m akes me so nervous I ’m losing
weight.
F rie n d : W hy don’t you leave him ?
W o m an : I will as soon as I get
down to 120 pounds.
E v e ry b o d y ’s P roblem
W h y is there never enough time to
do the job right, but always enough
tim e to do it over?
IXDEX OF
ADVERTISERS
M A R C H , 1962
E m p l o y e r s M u t u a l C a s u a l t y C o ...................117
E s s e x I n n .................................................................... 54
E x e c u t i v e H o u s e A r i z o n i a n ....................... 46
A
F
F a r m B u s i n e s s C o u n c i l I n c .............................116
F a rm e rs M u tu a l H ail In s u ra n c e
C o m p a n y o f I o w a ........................................... 58
F ir s t C o n tin e n tal N a tio n a l B an k
a n d T r u s t C o m p a n y ...................................... 93
F i r s t o f I o w a C o r p o r a t i o n ............................. 102
F i r s t N a t i o n a l B a n k — C h i c a g o .................. 11
F i r s t N a t i o n a l B a n k —- D e n v e r .................... 81
F i r s t N a t i o n a l B a n k — O m a h a .................... 85
F i r s t N a t i o n a l C i t y B a n k o f N e w Y o r k 6-7
F i r s t N e b r a s k a S e c u r i t i e s , I n c ...................... 97
F i r s t S to ck Y a rd s B a n k —•
S o u t h S t. J o s e p h .............................................. 95
4T G / F ”
T eacher: T his makes five tim es I
have punished you this week. Now,
Tom m y, w hat have you to say?
T om m y: T hank goodness it’s F r i
day.
C
C a d i l l a c A s s o c i a t e s , I n c ...................................... 114
C e l - U - D e x C o r p o r a t i o n .....................................116
C entral B an k and T ru st C om pany
— D e n v e r .................................................................. 78
C en tral N atio n al B an k and T ru st
C o m p a n y — D e s M o i n e s .............................. 12
C e n t r a l S t a t e s H e a l t h a n d L i f e C o ........ 119
C h a s e M a n h a t t a n B a n k , T h e ....................... 15
C h e m i c a l B a n k a n d T r u s t C o m p a n y . . . 47
C h i l e s - S c h u t z C o m p a n y ................................. 84
C h r i s t m a s C lub, a C o r p o r a t i o n
........... 19
C ity N a tio n a l B a n k a n d T r u s t
C o m p a n y - — K a n s a s C i t y .............................. 91
C o n g r e s s o f M o t o r H o t e l s .............................. 75
C o n tin e n ta l Illin o is N a tio n a l B a n k
a n d T r u s t C o m p a n y ...................................... 45
N orthw estern Banker, March, 1962
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
G
G ross, K irk , C o m p a n y
M
M a n u f a c t u r e r s H a n o v e r T r u s t C o ............ 8-9
M a r q u e t t e N a t i o n a l B a n k ............................. 110
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . 54
M e r c h a n t s N a t i o n a l B a n k ............................
2
M i d l a n d N a t i o n a l B a n k ................................... 62
..........
72
M i n n e s o t a C o m m e r c i a l M e n ’s A s s n
M o r r i s s e y a n d C o m p a n y ................................. 35
M u t u a l F i r e a n d A u t o m o b i l e I n s . C o . . . 52
N
E
B a n k o f A m e r i c a ........................................ 60, 61
B a n k B u i l d i n g a n d E q u i p m e n t C o r p . . . 17
B a n k o f C a l i f o r n i a .............................................. 77
B a n k o f M o n t r e a l ................................................ 65
B a n k e r s T r u s t C o m p a n y — D e s M o i n e s . . 98
B e h , C a r l e t o n D . C o m p a n y ......................... 38
*
M other-of-the-H ouse to T e e n a g e
Baby S itte r : W e ’ll put the baby in her
bed right here beside the refrigerator
so you can keep an eye on her.
i)
D a i n , J . M., a n d C o m p a n y , I n c .................... 40
D a v e n p o r t , P . E . , C o m p a n y ............... 8 4 -1 1 6
D e L u x e C h e c k P r i n t e r s , I n c ......................... 44
D i e b o l d , I n c .......................................................... 2 0 -2 1
D o a n e A g r i c u l t u r a l S e r v i c e , I n c ...................46
D o u g l a s - G u a r d i a n W a r e h o u s e C o r p . . . . 50
D o w n e y , C. L., C o m p a n y ................................. 10
D r o v e r s N a t i o n a l B a n k .....................................109
B
. .
“W h a t’s this fly doing in my soup ?”
inquired the business m an who was
getting m ore irritated by the minute.
“T he w aiter came back, stood a minute looking into the soup b o w l: “ Looks
like the back stroke to m e.”
A W ise M other
W eight a W hile
A c o r n P r i n t i n g C o m p a n y .............................. 86
A l l i s o n - W i l l i a m s C o m p a n y ............................ 38
A m e r i c a n E x p r e s s C o m p a n y ....................... 49
A m e r i c a n N a t i o n a l B a n k — S t. J o s e p h . . 114
A m erican N a tio n a l B a n k an d
T r u s t C o m p a n y — C h i c a g o .......................
4
A m e ric a n T r u s t a n d S av in g s B a n k
— D u b u q u e ..............................................................113
A s h w e l l a n d C o m p a n y ...................................... 39
j
“ I m et my husband at a travel bu
reau. I w as looking for a vacation spot
and he was the last reso rt.”
............................... . . . 1 1 5
H
H a l s e y , S t u a r t a n d C o m p a n y , I n c ................34
H a r r i s T r u s t a n d S a v i n g s B a n k ............. 41
H u m m e r , W a y n e , a n d C o m p a n y ............... 40
I
Io w a -D e s M oines N a tio n a l B a n k
Io w a P o w e r and L ig h t C om pany
........... 120
.......... 14
K
K a l m a n a n d C o m p a n y , I n c .............................. 37
K i r k p a t r i c k - P e t t i s C o m p a n y .................... 35
K o c h B r o t h e r s .........................................................116
L
L a M o n t e , G e o r g e & S o n ................................. 57
L a S a l l e N a t i o n a l B a n k .................................... 103
L i v e S t o c k N a t i o n a l B a n k — C h i c a g o . . . 107
L i v e S t o c k N a t i o n a l B a n k — S i o u x C i t y . 70
N a tio n a l B a n k of C o m m erce T r u s t
a n d S a v i n g s ........................................................
N a tio n a l B o u le v a rd B a n k of C h ic a g o ..
N a t i o n a l C a s h R e g i s t e r C o m p a n y ..........
N a t i o n a l R e s e r v e L i f e I n s . C o ....................
N e u a n d C o m p a n y ................................................
N e w h o u s e P a p e r C o m p a n y ............................
N o r t h e r n T r u s t C o m p a n y ..............................
O
O m ah a N a tio n al B a n k
......................................
89
42
22
59
35
52
3
87
P
P ro tectio n
E q u ip m en t C om pany
.............
43
......................................
53
It
R ec o rd a k C o rp o ratio n
S
S t. P a u l M e r c u r y I n d e m n i t y C o .....................48
S t. P a u l T e r m i n a l W a r e h o u s e C o ............ 115
S h a w , M c D e r m o t t a n d C o m p a n y ............. 39
S tudley, S h u p e rt T r u s t I n v e s tm e n t
C o u n c i l .................................................................... 56
T
T a l c o t t , J a m e s , I n c ............................................... 67
T o y N a t i o n a l B a n k ............................................. 101
*
U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . 72
U n i t e d S t a t e s N a t i o n a l B a n k — O m a h a . . 82
V
V alley B an k an d T r u s t C om pany
— D e s M o i n e s ..............................
V alley N a tio n a l B a n k — P h o e n ix
V a n H o r n e I n v e s t m e n t s , Inc. . . .
AV
W e l l s F a r g o B a n k ...............................
W e s t e r n M u t u a l I n s u r a n c e Co. .
W h i t e - P h i l l i p s C o m p a n y , Inc. . .
W itte r, D ean, an d C om pany . . . .
Ill
16
96
51
55
36
33
*
"W e ’ve m odernized
our b a n k . . . and
our b a n k services”
— says Mr. Eugene Elkins (standing), Vice-President
and Cashier of The State Bank of Dixon, Dixon, Mis
souri. “We take great pride in being able to offer our
customers the most modern facilities for their bank
ing needs.”
Mr. Price Prewett (seated), Vice-President, reports
that the modernization and additional services have
“increased business tremendously.”
“We feel one of the most important services was of
fering Central States Bank-Health Program to our
checking account customers,” Mr. Prewett said. “By
adopting the Bank-Health Plan, we have increased
our revenue, acquired several new accounts, and
greatly improved customer relations. For all of this,
our bookkeeper spends only about an hour and fortyfive minutes a month.”
V IP *
IN OVER 700 BAN KS * V oluntary Insurance Protection
Cen tra l Sta tes
H ea lth & L if e C o .
of O maha
T. LESLIE KIZER, President
CENTRAL STATES INSURANCE BUILDING
HOWARD AT 18TH STREET • OMAHA
UND ERWR ITER S O F C O N S UM E R CREDIT I NSURANCE
AND
LIFE,
HEALTH,
ACCIDENT
I NSUR ANC E T H R O U G H
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
AND
FINANCIAL
HOSPITAL
INSTITUTIONS
Need help with increasing grain trade?
Helping out is p a rt of our business. In fact, overline loans
are ju st one of many, m any specialized services the IowaDes Moines can offer your bank.
We can serve you as depository: Des Moines, located in
the American H eartland, is a prim ary communications center,
provides every facility for progressively faster transfer of
funds everywhere in the U.S.
We can expedite your collections: our round-the-clock
tran sit operation makes for faster service. Float is minimized.
T ry our D irect Notification Plan for fast reporting on non
paym ent checks. Your special needs get extra special attention.
Grain drafts . . . credit inform ation . . . commodity loans
. . . purchase, sales and safekeeping of securities . . . tru st
and estate service . . . internal operations . . . Iowa-Des
Moines offers complete banking service. These five men are
here to help you get it. Always a little jaster .
We’re here to help you get what you want
I o w a -D e s M o
6th and W alnut, Des M oines 4, Iowa
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Federal Reserve Bank of St. Louis
i n e s N a t i o n a l B a r th ,
Member Federal Deposit Insurance Corporation
C H e rry 3 -1191
@FedFRASER