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--------- —
Federal Reserve Bank of St. Louis




myriad tools
o f modern banking
... and men who
know how to use them

24-H our transit service. A t Merchants National Bank,
our up-to-date, computerized Transit Department is one
of the nation’s most modem.
M N B ’s ’round-the-clock Transit Department and ad­
vanced Electronic Datacenter — a combination of the
latest machines and the experienced men who know how
to use them — are good reasons why over half the banks
in Iowa are M NB correspondents.

So many ways we can help you . . .

MencWtfc H cA ionoS l
Federal Reserve Bank of St. Louis


when managing your bond portfolio is an " after five” job
Sometimes, there are not enough
hours in the day to tend to new
business, operating problems,
and civic projects—and still have
tim e fo r th e m a n a g e m e n t of
If managing your bond portfolio
is an “after five" job, or a problem
at any time, Trust Northern to
assist you. The portfolio assist­
ance you get from the Bank’s
Bond Departm ent is complete
and comprehensive.
Most im portant, however, is
the personal attention from the

officer assigned to your account.
He will make it a point to study
all the factors governing your
account, including the loan re­
quirements of your community


Chicago 6 06 90

• Financial 6 -5 5 0 0



• Member F.D.I.C.

and the seasonal fluctuations in
your deposits.
In a d d itio n , T h e N o rth ern
Trust’s broad experience with tax
problems—as well as with gov­
ernment, municipal and federal
agency s e c u ritie s — can often
help you keep a larger share of
your income, thus adding to your
bank’s net earnings. For a com­
plete discu ssio n of our Bond
services, call or write Mr. Clayton
F. Brown, Vice President, or one
of his associates at The Northern
Trust Bank.

No. 1023. Northwestern Banker is published five times a month by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309.
Subscriptions 50c per copy, $4 per year. Second class postage paid at Des Moines, Iowa. Address all mail (subscriptions, change of address. Form 3579,
mail items) to above address.
Federal Reserve Bank of St. Louis


a few of the claim s
w e ju st paid...
Smash-up by
“ unauthorized under-age
driver.” Direct carrier
refused to pay. f(
Scarborough did.

friend of the
banker’s son
forgot to insure. We paid
the bank’s loss.

Bank borrower lapsed
payment on his car insurance.
Was canceled out before
wreck. Bank repossessed.'' ftQNv .
Scarborough paid bank..

Insurer refused payout
on wreck “ because
statement on application
was false.” Scarborough
paid bank.

Borrower didn’t name
bank as loss payee on
insurance. Bank stuck
zJ with wreck; reimbursed
by Scarborough.



Insurer refused to pay
collision claim till a
personal injury squabble
was settled. Scarborough paid bank
at once.
Buyer wrecked car, didn’t notify
insurer, made 2 more payments.
When bank repossessed, insurance
was void. Scarborough reimbursed


Bank repossessed
wreck. Borrower
refused to
present claim to
insurer who then
rejected bank’s claim.
Scarborough paid (even
though L.P. clause
was short form).

Direct carrier
compromised claim 50%
Scarborough paid bank
the other half.




Borrower took title
assignment from dealer
but, to save sales tax,
didn’ t register it.
Direct carrier wouldn’t pay.
Scarborough did.


, ,
9 ,' J


...on Scarborough’s
Lenders Single Interest
ifcPays if the car buyer says he will insure but
doesn’t, or lets it lapse, or is canceled out, or if
the direct carrier denies liability. This is the policy
that Scarborough originated—and perfected.



Northwestern Banker. March, 1967
Federal Reserve Bank of St. Louis



SI N C E 1919 /

If you own this policy, just complete our claims form
whenever you have a loss and within 2 to 4 days (usually
2) we will send you your check. We can do that because
there are no branch office delays or independent ad­
justers to contact. We work direct with you. Write for
brochure and quote. No obligation, of course.



D ea r lìtiito r

Oldest Financial Journal West of the Mississippi

for your M A R C H , 1967, reading
“ Response to Letter,',
“ In your January, 1967, issue you printed
a letter to the American Bankers Associa­
tion from Mr. T. L. Vinyard, executive
vice president, First Trust and Savings
Bank, Davenport, Iowa. Perhaps you would
be interested in printing my reply to Air.
Vinyard, a copy of which is enclosed.”
Sincerely yours,
Charls E. Walker,
Executive Vice President,
American Bankers Association,
New York, N. Y.
(Mr. Walker’s reply appears below.)
January 3, 1967
“ Mr. T. L. Vinyard
Executive Vice-President
First Trust and Savings Bank
Third and Brady
Davenport, Iowa
“ Dear Mr. Vinyard:
“ Your letter of December 10 to former
A.B.A. President Archie K. Davis has been
referred to me for reply.
“ To my knowledge, there is no legislation
pending in the Congress that would force
commercial banks to join the Federal Re­
serve System, although there was a bill
introduced in the last session that would
require non-member state banks to carry
reserves in the Federal Reserve Banks.
Admittedly, even though this would not
involve actual membership in the Federal
Reserve System, the results would be some­
thing very similar to it.
“ I would think that this particular bill
would be re-introduced in the coming Con­
gress, and the A.B.A. is now at work on its
position with respect to it. The staff, the
National Bank Division, and the State Bank
Division all have recommended opposition
to this portion of the legislation, and I feel
reasonably confident that this will, in the
final analysis, be the A.B.A. position. Fur­
thermore, I believe that this legislation has
little chance of enactment, short of the
emergence of extreme financial conditions
in the United States.
Sincerely yours,
Chares E. W alker .”

Named Chairman of Ad Group
George Briggs, vice president in
charge of marketing, United California
Bank, Los Angeles, has been appoint­
ed chairman of the Advertising Ad­
visory Group, Foundation for Com­
mercial Banks.

73rd Year

No. 1023


Across the Desk from the Publisher


Secondary Market— Cash for Seller; Profit fo r Buyer—
Robert J. Wissler


Annual Bond and Investment Review — Northwestern BankerSurvey


Advantages of Discount Bond— Kenneth L. Eaton


State Funds Are Defense Against National Policy—
Dr. Lewis E. Davids


Danger Signals: An Underwriters Assessment— Richard C. Ross


Outlook for Interest Rates; Investment Yields—
William B. Hummer


Four Relaxing Hobbies


Insurance Companies Report 1966 Progress

Twin City
South Dakota
North Dakota



75 Montana News
77 Nebraska News
78 Omaha News
84 Lincoln News
89 Iowa News
104 Des Moines News


Convention Calendar-


Index of Advertisers


In the Directors Room

306 15th S treet, Des Moines, Iowa 50309, Telephone (A rea Code 515) 244-8163
Clifford De Puy

Malcolm K. Freeland

Ben J. H aller, Jr.
M anaging E ditor
David L. Lendt

Business M anager
Larry W . Nothwehr
Advertising Assistant
Mildred Savich

Circulation Department
Lena Sutphin

Field Representative
AI Kerbel

Field Representative
loe M. Smith

Bertha Soderquist
Field Representative
Paul Masters

Frank P. Syms, Vice P resident, 550 F ifth Avenue, New York 10036, JUdson 2-7126

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


C redit t'on feren ee in terview

TALKING with reporters at the A.B.A.’s 19tli National Credit Conference are, from left:
Tilden Cummings, pres., Continental Illinois National Bank & Trust Co. of Chicago;
Norfleet Turner, chmn., First National Bank of Memphis; George Champion, chmn.,
Chase Manhattan Bank N. A. of New York, and Ransom M. Cook, chmn., Wells Fargo
Bank of San Francisco. At the press conference, Mr. Champion defended his bank’s
decision to cut its prime interest rate to 5% per cent from 6 per cent.

At Continental Illinois Bank

IHvisinnnl tita n y e s A nnnnneed
OHN C. STURGIS, vice president
of Continental Illinois National
Bank and Trust Company, Chicago,
has been assigned over-all responsibil­
ity for the bank’s retail banking de­
partment, including the Town & Coun­
try Charge card division. Mr. Sturgis
previously was in a metropolitan lend­
ing group of the commercial banking
G. Gardner Davenport has been


elected vice president in the retail
banking department and will continue
to be in charge of the consumer credit
Selden T. Swope, vice president, for­
mer head of the retail banking de­
partment, has been placed in charge
of the commercial banking depart­
ment’s Group 8, which lends to finance
companies, small business investment
organizations, and leasing firms.

Prime Short-Term Notes
^5,000-^5,000,000 Denominations
In all Maturities —5 to 270 Days
Discount or Interest Bearing
Now available for Delivery and Settlement in

For Current Rates and Orders
Telephone (312) 782-9048

For Current Rates and Orders
Telephone (6 1 2 ) 330-8473

eT A L C 0 '11'


1290 Avenue of the Americas, N e w York, N. Y. 10019

Assets Over $600 ,0 0 0 ,0 0 0

Capital Funds: $ 1 4 0 ,000,000

Atlanta • Boston • Chicago • Dallas • Detroit • Hartford • Kansas City
Los Angeles ■ Memphis • Miami • Minneapolis • N e w a rk • N e w York
San Juan, P.R.
• Phoenix • San Francisco

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


George R. Baker, vice president,
who has been heading Group 8, will,
after a short transition period, be
transferred to the bank’s Group U,
which lends to petroleum firms and
public utilities. Because of the technical nature of a large part of the
lending in that group, it is expected
that there will be a change-over pe­
riod of several months, then Mr. Baker
will become head of Group U.
Eugene Holland, Jr., vice president,
who is now in charge of Group U, then
will be transferred to assume respon­
sibility for the operation of Group H,
in the bank’s national division, which
covers states along the Atlantic and
Gulf coasts and the District of Co­
When Mr. Holland has moved to
Group H, its present head, Robert C.
Suhr, senior vice president, will de­
vote full time to administration of the
national division with Berford Brit­
tain, Jr., senior vice president.





“ Tools for Added Profits”
Is Bank PRMA Theme
Don E. Zentner, general chairman of
the Mid-Central Regional spring meet­
ing of the Bank Public Relations and
Marketing Association, a n n ou n ces
that the theme for the meeting will
be “Tools for Added Profits.” The
conference is scheduled for April 9-10,
at the Plankinton r
House in Milwau­
kee. Mr. Zentner
is vice president,
Wauwatosa State
B ank, W a u w a ­
tosa Wis.
Program Chair­
man Ray Rusch,
director of mar­
k e tin g at F irst
W is co n s in N a­
D. E. Z E N T N E R
tional Bank, Mil­
waukee, also announced that panel
presentations and discussions will
cover such subjects as “What Is This
Thing Called Marketing?” “Upgrading
the Selling Effort” and “Competition.”
There will be an Early Bird Get-To­
gether on Sunday evening, April 9.
Ray Cheseldine, executive vice pres­
ident of BPRMA, Chicago office, will
open the Monday sessions with the
showing of a new association film.
The keynote speaker for the noon
luncheon on Monday will be R. Kirby
Whyte, president of BPMRA and vice
president, Indiana National Bank, In­
dianapolis. His subject will be “Our
Image and You.”
Bankers who are not members of
BPRMA also are invited to attend,
Mr. Zentner states.

Quite likely it will be . . . if your advisor is not deep in
the exacting business of building banks. An earful
from the wrong but well-meaning source can launch
you on the pathway to waste.
Instead . . . this suggestion. While in the early think­
ing stage, get your earful from a Bank Building con­
sultant. He represents hundreds of specialists in 39
separate categories, backed by a half century of de­
signing, building and equipping financial institutions.
We will study your unique methods, operation, needs,
problems, traditions and goals. We’ll develop a pro­
gram to build that which will function efficiently . . .
serve to help you and your employees serve your
customers. What’s more, we’ll even offer a complete
guaranteed building cost estimate at the earliest
visualization stage.
Planning based on specialized experience . . . and
facts. Building to suit your organization and price . . .
without costly surprises. Aren't these good reasons
to call Bank Building? And if you want a really good
tip . . . ask any of our clients.

First Class
Permit No.
St. Louis, Mo.
BUSINESS REPLY MAIL—No postage necessary if mailed in the United States

Postage will be paid by



att. Mr. Earl Klein
Federal Reserve Bank of St. Louis


costly tip
or how to get off
on the right foot

Why not listen to us specialists in building financial
institutions? It’s an assured way to avoid the embar­
rassment of running up costs. You get the kind of
building that suits your community and fills your ex­
pectations for growth. 1. As in Sugar Land (Texas)
State Bank and in 2. Delta National Bank, Yazoo City,
Miss., an agricultural community is served. 3. In
Bank Building projects throughout the U.S., an aver­
age of 83.8% of all construction materials and labor
is acquired locally. 4. To get off on the right foot, con­
sult a Bank Building consultant first. For the lowdown on vital facts, send for free brochure “The
truth about new quarters costs.”

1 Sugar Land State Bank, Sugar Land, Texas.


2 Delta National Bank, Yazoo City, Miss.

On or about


Most construction materials, labor acquired locally.

4 Consultation.

we contemplate :

I I new building


new fixtures


modernized quarters


high rise

Send for brochure "The truth about new quarters costs."

I I Please send a Bank Building consultant to discuss our project with us. We understand
there is no obligation involved.


Bank name


Federal Reserve Bank of St. Louis

IN -5

Send for brochure "The truth about new quarters costs."



6,518 entries submitted by top displaymen in 17 countries. The citations
were for Christmas Animated Dis­
plays, Christmas Institutional Dis­
plays and Special Event Interior
Thomas M. Mocella, marketing serv­
ices officer and display manager of the
Harris, said the bank was especially
proud of the honorable mentions since
the displays were judged against those
of the nation’s leading retailers who
normally produce lavish Christmas

La Salle Promotes Two

CERTIFICATES won in Arizona Advertising Awards competition are displayed by
Mert G-. Reade, adv. dir. for Yalley Natl., Phoenix.

Yalley National Wins Awards
Valley National Bank of Ari­
zona won 10 awards in the annual
Arizone Advertising Awards competi­
tion, including a special category set
up by the judges after seeing a bank
TV commercial, celling it “Best of
It was the first time in the history
of the competition that any advertiser
or any advertisement had been singled
out for such an honor.
VNB advertising director, Mert G.
Reade, received the honors at the 15th
annual awards banquet, held in Tuc­
son. The categories and the bank
Newspaper ad in black plus one-col­
or: First place.
Newspaper color ad: Two honorable
Trade publication ad: Second place.
Outdoor poster: First place plus an
honorable mention.
Multi-media campaign: Third award.
TV color spots: First place.
TV 10-second spot: First place.
In addition, the judges elected to
give the special “West of Show”
award for another VNB TV one-min­
ute commercial, advertising home
modernization loans.
Judges for the awards were promi­
nent out-of-state advertising execu­
The bank’s advertising agency is
Jennings and Thompson Advertising,
Inc., Phoenix.

Jesse W . Tapp
Jesse W. Tapp, nationally known
banker, agricurtural economist and
civic leader, died recently in San Fran­
cisco at the age of 67.
Mr. Tapp served as chairman of the
board of Bank of American from 1955
Federal Reserve Bank of St. Louis

65. Following his
re tirem en t, he
continued an ac­
tive role as a
m em ber of the
b oa rd of direc­
tors, chairman of
the general trust
committee, and as
a member of the
trust investment
j. w. t a p p
policy committee.
Only a week be­
fore his death, Mr. Tapp had con­
cluded a term a spresident of the Cali­
fornia State Board of Agriculture. He
had also served as an ex-officio mem­
ber of the board of regents of the Uni­
versity of Califorina.
Prior to joining Bank of America as
a vice president in 1939, Mr. Tapp was
engaged in research and administra­
tive work for the United States De­
partment of Agriculture.
At the time of his death he was
serving on the Public Advisory Com­
mittee on Trade Negotiations, the Na­
tional Advisory Commission on Food
and Fiber, and the Advisory Council
on Insured Loans to Students as an
appointee of President Johnson.

Gold Medal Award to
Harris Trust Displays
The 1966 window displays of the
Harris Trust and Savings Bank in
Chicago have again captured the first
place gold medal for banks and sav­
ings institutions in Display World
magazine’s 17th Annual International
Display Contest. It is the fourth time
in five years that Harris Bank has
walked off with the first place award.
The bank also received honorable
mentions in open competition with

La Salle National Bank of Chicago
directors have elected Henry H.
Lyman, Jr., and Eugene T. Maylott
assistant vice presidents in the bank’s
trust department. The announcement
was made by Harold Meidell, chair­
man, and Milton F. Darr, Jr., presi­

H. H. L Y M A N , JR.

E. T . M A Y L O T T

Mr. Lyman, a graduate of Colgate
University joined the bank in 1963,
and now heads the business develop­
ment division of the trust department.
Mr. Maylott, a graduate of Brandon
College, Brandon, Manitoba, Canada,
and the University of Manitoba Law
School, joined the bank in 1963, and
now heads the probate division of the
trust department.

Morgan Guaranty Director
Olcott D. Smith, chairman of Aetna
Life & Casualty, has been elected a
director of Mor­
g a n G u aran ty
Trust C om pany
of New York, it
w as announced
by T hom as S.
Gates, chairman
of the board.
Mr. Smith has
been ch airm an
and chief execu­
tiv e officer of
o . D. S M IT H
Aetna since 1963.
From 1936 until 1962 he was a partner
in the Hartford law firm of Day, Berry
and Howard. He joined that firm in
1932 after graduation from Yale Uni­
versity and Harvard Law School.
Northwestern Banker, March, 1967


Teach 3Jiei,ofilm in f/ in S chool

Backing up
some of America’s
Most successful
Com m unity B ank
T ru st D ep a rtm en ts
The Studley, Shupert Trust
Investment Council’s staff
of investment specialists is
continuously behind every
Council Member Trust Offi­
cer . . . supplying him, in­
forming him, fortifying him
with a steady flow of practi­
cal information which helps
him demonstrate that his
department (small as it may
be) offers its clients an in­
vestment competence of the
highest order.
Council M em bers from
coast to coast will tell you
that this unique back-up is
responsible in large measure
for their success.
Write for details about
Council membership.





T ru s t In v e s tm e n t Council
8 6 0 S u b u r b a n S ta tio n B u ild in g
P h ila d e lp h ia , P a . 1 9 1 0 3

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

OPERATION of a Recordak Magnaprint Reader/Printer is explained to Lakewood
(N. J.) High School seniors by instructor James White, Jr. The Recordak portable micro­
filmer is at far right. This serious session is part of advanced office technique training v.
that 46 Lakewood High seniors are receiving as part of a pilot course in “ micrographics.”
It is believed to be the first time ever that instruction in microfilming techniques, infor­
mation handling and record-management has been offered in the secondary school system.
The school purchased from Eastman Kodak Company the above equipment with funds
provided under Title I of the Educational Secondary School Act in order to provide
its graduating seniors with up-to-date technological advances in file control in industry v
brought about by the adoption of microphotographie techniques. Part of the pilot
course will be visits this spring to offices of companies using the type of equipment
studied in school.

March 13-15—ABA 64th National Sav­
ings Conference, Atlanta Marriott
Motor Hotel, Atlanta, Georgia.
March 20-22—ABA National Instal­
ment Credit Conference, Conrad
Hilton Hotel, Chicago.
March 30 — Spring Banking Confer­
ence, Iowa Bankers Assn., Hotel
Kirkwood, Des Moines.
April 9-10 — Bank Public Relations
and Marketing Association Re­
gional Conference, Plankinton
Hotel, Milwaukee, Wise.
April 26-27—Iowa Installment Lend­
ing Conference, Hotel Kirkwood,
Des Moines.
May 7-9—Nebraska Bankers Associa­
tion Annual Convention, Sheraton-Fontenelle Hotel, Omaha.
May 7-10—ABA National Automation
Conference, The Americana of
New York, New York City.
May 9-12—Iowa Bankers Association,
First Week of Group Meetings.
May 10-12 — North Dakota Bankers
Association Annual Convention,
May 14-16—NABAC Northern Region­
al Convention, Grand Rapids,
May 16-19—ABA National Mortgage
Conference, Chase-Park Plaza Ho­
tel, St. Louis.
May 18-20—South Dakota Bankers As­
sociation, Rapid City.
May 23-26—Iowa Bankers Association,
Second Week of Group Meetings.

May 29-June 2—AIB National Con­
vention, Statler Hilton Hotel,
June 1-3—Colorado Bankers Associa­
tion Annual Convention, Broad­
moor Hotel, Colorado Springs.
June 8-10—Wyoming Bankers Associ­
ation 59th Annual Convention,
Jackson Lake Lodge, Moran, Wyo.
June 12-14—Minnesota Bankers Asso­
ciation 77th Annual Convention,
St. Paul Hilton Hotel, St. Paul.
June 14-17—American Safe Deposit
Association Convention, Brown
Palace Hotel, Denver.
June 15-17—Montana Bankers Associ­
ation Convention, Jackson Lake
Lodge, Moran, Wyo.
July 9-22—Bank Public Relations and
Marketing Association, 20th An­
nual School, Northwestern Uni­
versity, Chicago campus.
July 30-August 12 — NABAC School,
University of Wisconsin, Madison.
September 24-27 — American Bankers
Convention, 93rd Annual, New
York, N. Y.
October 8-13—Bank Public Relations
and Management Association An­
nual Convention, Denver Hilton
Hotel, Denver.
October 9-13—Nebraska Bankers As­
sociation Group Meetings.
October 15-18—NABAC National Con­
vention, Seattle, Wash.
October 22-25—Iowa Bankers Associ­
ation Annual Convention, Hotel
Fort Des Moines, Des Moines.
November 12-14—National Agricultur­
al Credit Conference, Chase-Park
Plaza Hotel, St. Louis, Mo.






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■ Ä Ä iiS
■■■n h H H I

You can expect a little extra from Chase Manhattan
The extras come from what we call Consolidated
Correspondent Service.
As we see it, any good bank can give you an
adequate portfolio review, or dig up volumes of
routine credit information on order. But service
goes a bit beyond the performance o f a profes­
sional chore.True correspondent service is a pack­
age concept. It consolidates all your needs as a
matter of course; then imaginatively seeks out
additional ways to be helpful.
 And it’s who and what we are that makes it
possible for us to consolidate service and give
Federal Reserve Bank of St. Louis

you more. People— plus knowledge, experience,
tradition, facilities and size make us unique as a
banker’s bank. That’s why we’re the nation’ s
number-one correspondent bank by quite a few
galloping lengths.
Call on us for anything. W e’ ll show you the
value of Consolidated Correspondent Service—
why you can expect a little extra from your friend
at Chase Manhattan.

National Association/Member Federal Deposit Insurance Corporation



Senior Vice President
Real Estate


Vice President
Correspondent Banks

Senior Vice President
Instalm ent Loans





Trust Officer

Assistant Trust Officer




Assistant Cashier
Wisconsin Representative
Correspondent Banks

Assistant Cashier
Bank Operations


Assistant Vice President
Investment Services

Assistant Cashier
Commercial Department

D e c a d e s of b an k in g e x p e rie n c e stand beh in d th e M en of D ro v e rs .
Skilled Drovers bankers pool years of financial experience to handle every
correspondent banking need—smoothly, efficiently. These men of Drovers
are trained and eager. Each is a specialist in one o f more than a dozen cor­
respondent banking services. Their years of experience are yours to use —
when you bank at Drovers.



From the heart of Chicago’s Stock Yards, Drovers National Bank serves
correspondent banks in the Middle West, South and East. It s one of
Chicago’s largest banks—and the only bank at the Stock Yards.


Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis





Vice President
Instalm ent Loans

Vice President
Savings Department




Vice President
Commercial Loans

Vice President—Cashier




Assistant Vice President
Iowa Representative,
Correspondent Banks

Assistant Vice President
Commercial Department

Assistant Vice President
Rea! Estate

Assistant Vice President
Savings Department

Assistant Vice President
Bank Operations




Assistant Cashier
Investment Services

Assistant Cashier
Real Estate



Vice President—Trust O llicer



Assistant Cashier
Instalment Loans

Assistant Cashier
Instalment Loans

Assistant Cashier
Instalment Loans

Call on the men of Drovers for all of your banking needs. Ask this experi­
enced banking team about Drovers complete services in:
• Instalment lending

• Loan participations

• Collection of shippers
and packers items

• Investments and safekeeping

• Credit

• Bank operations

• Transit Banking

• Foreign collections, remittance
and exchange

• Collections

• Trust department banking


47th Street & Ashland at Union Stock Yards


Phone: 927-7000


Chicago, III. 60609

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


C h extra

V entrnl Riniti

Central Bank and Trust Com­
pany of Denver is receiving ex­
cellent response to its new Chextra
service introduced last month, accord­
ing to Max G. Brooks, chairman and
As announced last month in the
N o r t h w e st e r n B a n k e r , the Chextra
service, developed by the Central after
many months of market research,
provides customers with a checking
account backed by an automatic line
of credit of $300 or more and guaran­
tees payment on any Chextra check
up to $50. Interest on any reserve
funds used is one per cent per month.
At present the new service is being
limited to customers in the Denver
metropolitan area.
Response from retail merchants to
the new service has been most re­
warding, Mr. Brooks reports. All
major grocery supermarket chains are
displaying special Chextra decals. A
staff of Central Bank business develop­
ment representatives are calling on
every retail business in the city of
Denver to explain the new Chextra
Mr. Brooks also reports that cus­
tomer response has been above ex­
pectation. Several thousand present

Max Brooks, chmn. and pres, of Central
Bank & Trust, Denver, display’s the bank’s
new Customer Guarantee Card and goldcolored checks—both part of Central’s new
“ Chextra” service.

Central Bank checking customers
have already converted to a Chextra
account. The number of new accounts
already generated by Chextra was
not revealed, however the bank’s three
months’ marketing goal was already
exceeded in the first month, he said.
Mr. Brooks emphasized that the
Chextra Customer Guarantee Card is
not a credit card. “We feel that
Chextra has all the good features of
a credit card without the bad, which
include the danger of misuse if the
card is lost,” he said. “Essentially,
Chextra combines the advantages of
a credit card, travelers check and spe­
cial loan privileges.”

New Foundation Trustee

W estern-Southern Life provides a
wide range of individual and group
c re d it in s u ra n c e c o v e ra g e p lan s
specifically designed to meet the
n e e d s o f lo a n d e p a r tm e n ts and
creditor corporations regardless of
the size or mode of loan operation.
Broad coverage, liberal age, term
and amount limits with attractive
commission and convenient reporting
system m akes W e s te r n -S o u th e r n
plans profitable programs easy to
administer. W rite today for complete

George F. Kasten, president of First
Wisconsin National Bank of Milwau­
kee, Wis., was elected to a two-year
term as trustee-at-large of the Foun­
dation for Commercial Banks last

To Evaluate Bank PRMA
Bank Public Relations and Market­
ing Association has commissioned
Opinion Reserach Corporation, the
Princeton, N. J., market, attitude and
motivation rsearch firm, to conduct an
extensive study of the association’s
services, benefits, and activities.
According to Bank PRMA President
R. Kirby Whyte, the study will pro­
vide data to be used as a broader ba­
sis for future planning by the organi­

P.0. Box 1119 • Cincinnati, Ohio 45201


A Mutual Company— William C. Safford, President

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

St. Paul F&M Buys
Title Companies
St. Paul Fire and Marine Insurance
Company has entered into a contract
to purchase Title Insurance Corpora­

tion of St. Louis from Chicago Title
and Trust Company, Ronald M. Hubbs,
president of St. Paul Fire and Marine,
announced recently.
The transaction includes the acqui­
sition of all stock of Title Insurance *
Corporation of St. Louis, Memphis
Title Company, Memphis, Tennessee,
and Capital Abstract and Title Co.,
Inc., Topeka, Kansas.
Purchase will be for cash with
terms not disclosed.
The sale complies with the divesti­
ture requirements of a consent decree y
entered May 23, 1966, by which a gov­
ernment antitrust suit against Chi­
cago Title and Trust Company was
Title Insurance Corporation of St. '
Louis is the largest title insurer in the
city and county of St. Louis. Gross
title insurance premiums and fees in
1966 will approximate $1,900,000.
Memphis Title Company and Capital
Abstract and Title Co., Inc. are local
abstract companies which have been
qualified agents of Kansas City Title
Insurance Company, a wholly owned
subsidiary of Chicago Title and Trust.
Combined title insurance premiums
and fees for the two companies in
1966 were slightly under $600,000.

American Express Net Jumps
Estimated consolidated net income
of American Express Company and
its subsidiaries for the year 1966 was
$19,225,000 or $4.05 per share, Howard
L. Clark, president, announced. This
com p a red with
consolidated n e t
income of $15,343,000 or $3.23 per
share in 1965, an
increase of 25.3
per cent.
Of these totals,
net income from
o p e ra tio n s in ­
creased to $18,784,000 in 1966 as
co m p a re d w ith
$15,123,000 in 1965. Security profits
realized principally by subsidiaries ac­
counted for the remaining increase in
total earnings.
Shareholders’ equity at the end of
the year increased by $11,423,000 to an
estimated $109,080,000.


Gets Honarary Degree
Lloyd L. Austin, chairman of the
board and chief executive officer of
Security First National Bank, Los
Angeles, received an honorary Doctor
of Laws degree from the University
of Southern California, his alma
mater, at the university’s annual mid­
year commencement exercises.




Take one or two
as needed to
insure that feeling
o f security !
Y o u can feel secure in granting a loan against inventory when
your collateral is protected by Lawrence. The Lawrence name
on a field warehouse receipt means it is backed by
fifty years o f experience and the broadest
insurance coverage in the industry.

R eceivables financing is equally safe when you use our new and exclusive
which eliminates the former hazards and expense.
And, if additional collateral and broader loan bases are required, these remedies—
in combination—provide a complete collateral protection package.
So, for the sake o f security, take either one, o r . . .when indicated, TA K E BOTH !
For complete details just call us.


37 D ru m m S tre e t, S A N F R A N C IS C O
2 0 0 P a rk A v e n u e , N E W Y O R K

• 1 00 N o rth La S a lle S tre e t, C H IC A G O

Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1967


partment since 1930. This is Mr. ^
Harley’s 40th year with Harris, where
he has most recently been in the busi­
ness services division. Mr. Dumper
was in the investment department.
Mr. Rudolph worked in the banking f

Notiti ita ted fo r N A B A C P o sts

Sprinkel Appointed to
Economic Advisory Board

E. T. S H I P L E Y


LEVEN bankers have been nomi­
nated for top elective positions in
NABAC, The Association for Bank
Audit, Control and Operation.


Nominations include one-year terms
as president, first vice president, sec­
ond vice president, and treasurer, and
two-year terms as directors-at-large
and district directors. All nominees
will serve on NABAC’s national board
of directors. Terms begin July 1.
Nomination by NABAC’s nomina­
tions committee is tantamount to elec­
tion , which officially will take place
at NABAC’s board of directors’ annual
spring meeting.
Nominated to move up from first
vice president to president is Edward
T. Shipley, comptroller of the Wacho­
via Bank and Trust Company, Win­
ston-Salem, N. C. He will succeed
Walter C. Mercer, executive vice pres­
ident of the Ohio National Bank, Co­
lumbus, Ohio, as NABAC president.
Named to move up to first vice pres­
ident is Earl L. Bimson, executive
vice president of the Valley National
Bank of Phoenix, Ariz.
Named to be the new second vice
president, succeeding Mr. Bimson and
thus traditionally in line to become
president in two years, is William B.
Carr, executive vice president of the
Provident National Bank of Philadel­
NABAC’s new treasurer will be
Warren P. Gray, senior vice president
and cashier, the Third National Bank
in Nashville, Tenn. Mr. Gray’s ap­
pointment is for one year, but under
NABAC’s constitution he will be eli­
gible to serve a second term. He will
succeed Arthur W. Glennie, vice presi­
dent and comptroller of the LaSalle
National Bank of Chicago, who is com­
pleting his second term.
There are four directors-at-large on
NABAC’s board of directors, each of
whom serves a two-year term. The
two nominated this year for two-year
terms are Charles A. Agemian, execu­
tive vice president of the Chase Man­
hattan Bank, B.A., New York, and A.
R. Zipf, executtive vice president of
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

w . B. CARR

c. V.


the Bank of America NT&SA, San
The five nominees for district direc­
tor also have been named for two-year
terms. The District Six nominee for
the upper midwest is Clyde V. Stube,
vice president and director, Western
National Bank of Duluth, Minn.

Beryl W. Sprinkel, vice president
and economist at the Harris Trust
and Savings Bank, Chicago, has been
appointed to the newly-formed economic advisory board of the U. S. De­
partment of Commerce, Secretary
John T. Connor announced recently.

Iowa P&L Revenue Goes Up

Mr. Norve Cady, insurance spe­
cialist, has been appointed division
manager for Cen­
tral States Health
& Life Co. of
Omaha, Nebraska.
Mr. C a d y , 39,
jo in e d C en tral
States in Febru­
ary. His area of
responsibility in­
cludes 53 coun­
ties in Eastern
Iowa, his home
Prior to joining Central States, Mr.
Cady had been associated with the
Thomas Edison Life Insurance Co. of
Des Moines, where he was regional
director; and the Farm Bureau, where
he was division supervisor, also of
Des Moines.

Iowa Power and Light Company,
the Midwest based utility which pro­
vides electric and gas service to some
200 communities in Central and South­
west Iowa, including Des Moines and
Council Bluffs, experienced increases
in electric and gas revenues of 5.3 per
cent over the previously year to a v<
record high of $64,482,000.
Iowa Power reported it had spent
$16,100,000 for construction in 1966, in­
cluding such major projects as four
new gas-fired turbine generators in
the River Hills urban renewal area of
Des Moines, a new work center at
Council Bluffs, new transmission and
distribution lines and some 70 spe- V
cialized vehicles for gas and electric
line distribution work. Net of de­
preciation, the value of the utility
plant grew to $176,000,000.
The company announced plans for
a construction budget of $19,000,000 in
1967, about an 18 per cent increase
over 1966. Included is the beginning
construction on a 345,000 volt trans- x
mission line from Hills, Iowa, through
Des Moines and to the western part
of the state. The interconnecting
transmission line with Twin Cities, *
St. Louis, Kansas City and Omaha also
will interconnect with the new 800,000
kilowatt nuclear plant to be con­
structed in southeastern Nebraska by
Consumers Public Power District. '
The plant cost is estimated at $100
million, including purchase of the
1,000 acre site. Iowa Power would
purchase some 400,000 kilowatts of 4
power from the plant.

Harris Trust Retirements

American Express Officer

Four officers of Harris Trust and
Savings Bank, Chicago, have retired.
They are Brooks Corwine, vice presi­
dent, and Theodore H. Harley, Wil­
liam J. Dumper and Martin A. Ru­
dolph, assistant vice presidents.
Mr. Corwine joined Harris Bank in
1929 and has been in the trust de­

Charles D. Parker has been elected
assistant treasurer of American Ex­
press Company and The American Ex­
press Company, Incorporated, accord­
ing to Howard L. Clark, president.
Mr. Parker was formerly assistant
to the corporate treasurer of The
Singer Corporation.

New Chase Manhattan V .P .’ s
George Gabelman and Gerald J. Van
Dorn have been named vice presidents
in the bank operations department of
the Chase Manhattan Bank, N.A.,
New York, it was announced last
Mr. Gabelman is division executive
in charge of the general services di­
vision. Mr. Van Dorn heads the bank’s
protection division and is a former
special agent for the FBI.

Joins Central States H&L


Three good reasons for doing business with Commerce Trust:
1. Tom Cannon
2. Gary Peters
3. The best airline service in the country

When you do business with Com­
merce Trust, you’re taking- advantag-e
of direct, one-plane transit service from
Kansas City to 48 of the nation’s top
banking- centers.
No other city is as accessible to all
other parts of the country as Kansas
City... and no other bank in this

wonderfully-central location has men
like Tom Cannon and Gary Peters to
serve you.
With the fastest-acting- bankers and
the fastest plane service, Commerce
Trust offers an unbeatable combina­
tion. Is it any wonder so many banks
do business with Commerce Trust?

Kansas City, Missouri
Federal Reserve Bank of St. Louis

Northwestern Banker, March , 1967


Northern Trust Announces
Organizat iona 1 Realignment
Organizational changes have been
announced by Northern Trust Companay, Chicago, in its commercial and
correspondent bank division.
Thomas F. Duffy, vice president, has
been promoted form divisional to gen­
eral departmental loan administration.

sota, South Dakota, North Dakota, W y­
oming, Idaho, Oregon, Washington
and Alaska. This division is super­
vised by Robert F. Kline, vice presi­
dent, and he is assisted by these offi­
cers: Don W. Hummel, second vice
president; David D. Baer, John N. Fix,
John T. A. Price and Stephen B.
White, assistant cashiers.

Named Senior Vice President
Robert L. Edwards has been pro­
moted to senior vice president of The
Bank of New York, it was announced
by Samuel H. Woolley, president and
chief executive.
Mr. Edwards has been vice presi­
dent in charge of the international
division since September, 1960.
L. H. M IL L E R


Milwaukee Bank Promotes 10
First Wisconsin National Bank, Mil­
waukee, has appointed 10 new officers.
They are Jon C. Bruss, Thor G.
Christensen, William R. Duquaine, Jr.,
Gerald M. Falci, David A. Halmrast,
James F. Hicks, John L. Krewson,
James D. Miller, Lewis A. Naps and
Norbert E. Schwarz.
Messrs. Duquaine, Krewson and Mil­
ler were named assistant branch man­
agers, the others assistant cashiers.
Mr. Bruss is a member of the banks
and bankers division, and the other
new officers are assigned to loan and
operations duties.

Donald R. Atkin
Donald R. Atkin, 42, a vice president
of the Morgan Guaranty Trust Com­
pany, died of a brain tumor last
Mr. Atkin headed Morgan Guaran­
ty’s Madison Avenue office, where he
had been engaged in planning a ma­
jor enlargement and relocation of the
facility scheduled for next year. From
1962 until last year he was in charge
of the company’s office in London as
vice president and general manager.

Vote Drovers Stock Dividend

J. N. F IX

S. B. W H IT E

Appointed as head of the national
group is Lynn H. Miller, vice presi­
dent. This group furnishes banking
and financial counseling assistance for
all banks in the United States and for
business and industry throughout the
nation, excluding the Chicago metro­
politan area.
Within the national group, Division
C serves correspondent banks, busi­
nesses and industry in the states of
Iowa, Nebraska, Wisconsin, MinneNorthwestern Banker, March, ¡967
Federal Reserve Bank of St. Louis

Shareholders of The Drovers Na­
tional Bank of Chicago voted an 11.1
per cent stock dividend at their recent
annual meeting. The stock dividend
was announced by William C. Cum­
mings, chairman of the board, and
Robert Lough, president. Approval
has been received from the regional
administrator of national banks.
Shareholders will receive one addi­
tional share for each nine shares held.
The directors intend to maintain the
present dividend rate of $1 per share
annually on the 500,000 shares which
will be outstanding after the increase.
The increase in capital stock to

$5,000,000 from $4,500,000 was recom- ^
mended by the board of directors last
December. This increase in capital
stock will be provided for by the
transfer of $500,000 from undivided

Bank of Montreal Director
Appointment of Donald Gordon.
C.M.G., as a director of the Bank of
Montreal has been
announced by G.
A r n o l d H art,
c ha i r ma n a n d
Mr. Gordon be­
comes president
and chief execu­
tive officer of the
B r i t i s h N ew ­
foundland Corp.
and chairman of
D. G O R D O N
Chur c hi l l Falls f
(Laboratory) Corp. Ltd., effective
March 1. He was a career banker for
many years prior to becoming chair­
man and president of Canadian Na­
tional Railways, where he served for
17 years until his recent retirement.

Los Angeles Promotions


Promoted to vice presidents at Secu­
rity First National Bank, Los Angeles,
are Jack S. Klein and Gordon S. Temp­
lar. Mr. Klein is with the head office v
national and metropolitan banking de­
partment, where he heads the south­
western region of the national divi­
sion. Mr. Templar is in charge of the
credit coordination and analysis divi­
sion in the head office central credit

United California Buys
Western Banco Affiliate
United California Bank, Los Ange­
les, has purchased for an amount in
excess of $5 million in cash all of the
authorized and outstanding shares of
Western Bancorporation International
Bank, New York City, from Western
Bancorporation, Los Angeles, it was
announced by Frank L. King, chair­
man of the boards of both United Cali­
fornia Bank and Western Bancorpora­
Present management of Western
Bancorporation International B a n k
will remain unchanged. Lewis W.
Douglas continues as chairman; Frank
L. King, president; Victor R. Rose,
vice president, and Stanfield S. Tay­
lor, vice president. Mr. Rose is senior
vice president in charge of United
California Bank’s international division, and Mr. Taylor has immediate re­
sponsibility for the New York opera­








“ E xp ect a lot w hen your correspondent is the Harris”

Our International Banking Division can
save you time. A leisurely pace seems to be the rule in
international banking, but the Harris tries to be an exception. In
fact, we’re now processing documents faster than many of the other
major banks in the international field. Call on the Harris to save
you time on foreign collections, foreign exchange, and letters of
credit. We can also give fast personal service to you and your
customers trading or traveling overseas.

111 W. MONROE ST., C H IC A G O , ILL. 60690

Organized as M. W. Harris St Co. 1882—Incorporated 1907 • Member Federal Reserve System— Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis

Northwestern Banker. March, 1967


N ew
Director^Seven P ro m o tio n s
F o r F irst
election of one new director,
appointment of two men as honor­
ary directors and promotions and elec­
tions of seven staff members were an­
nounced last month by Homer J. Liv­
ingston, chairman of the board, First
National Bank of
The new direc­
tor is Peter G.
Pet er son, presi­
dent of Bell &
Howell Company.
Born in Kearney,
Neb., where he at­
tended Nebraska
State Te a c he r s
Col lege, he at­
P. G. P E T E R SO N
tended Massachu­
setts Institute of Technology and
graduated Summa Cum Laude with a
B.S. degree from Northwestern Uni­
versity. Mr. Peterson received his
M.B.A. degree, with honors from the
Graduate School of Business, Univer­
sity of Chicago. He joined Bell &
Howell in 1958 as an executive vice
president and director, was elected
president in April, 1961, and became
chief executive officer in July, 1963.
Under the bank’s policy relative to

W .M .H E Y M A N N


of the division of export expansion in
the department of business and eco­
nomic development. In 1966 he was
elected one of Chicago’s Ten Outstand­
ing Young Men by the Chicago Junior
Association of Commerce and Indus­
try. At First National he is assigned
to the international banking depart­
Karl W. Wellensick, assistant cash­
ier, and J. Antoine Zananiri of the in­
ternational banking department, were
named assistant managers in that de­
Brian P. Shanahan, trust officer, and
Bernard J. McGuigan, FirstCard de­
partment, were elected assistant cash­

Two Officers Retire at
American National, Chicago




the tenure of inside directors, two
board members, James B. Forgan and
Walter M. Heyman, did not stand for
re-election and were named honorary
directors. Mr. Forgan joined First
National in 1909 and has been a direc­
tor longer than any member of the
board, and served since 1960 as honor­
ary chairman of the board. Mr. Heymann joined the bank in 1926, became
a director in 1947, was elected execu­
tive vice president in 1954 and vice
chairman in 1960. He served in the
latter position until retiring in 1962.
Weston K. Whiteman has been ad­
vanced to vice president in loan divi­
sion H, which handles accounts of in­
vestment bankers, stockbrokers, bond
dealers and public utilities.
Robert H. Blanchard and James A.
Cassin were named assistant vice pres­
idents. Mr. Blanchard is in division
H. Mr. Cassin has been working for
the state of Illinois since 1963 as chief
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

Two prominent loop bankers, Wal­
ter A. Gatzert, senior vice president,
and Paul C. Raymond, vice president,
American National Bank and Trust
Company of Chicago, have retired, it
is announced by Robert E. Straus,
board chairman.
Mr. Gatzert began his business ca­
reer in 1922 as an investment banker,
then organized his own investment
firm and later served as secretarytreasurer of Spiegel, Inc., before join­
ing American National in 1952 as a
vice president. Shortly thereafter he
was made head of a commercial loan
division, which he continued until be­
ing named senior vice president in
Mr. Raymond started in 1929 as
credit manager of the old Chicago
Bank of Commerce, joining American
National in 1933. He became an officer
in 1940 and in 1949 was named vice
president and commercial loan divi­
sion head.

Equal Employment Ruling
Assistant Tresury Secretary Robert
A. Wallace has sent letters to 14,000
banks providing detailed information
on requirements for compliance with

the Treasury Department’s new Equal -K
Employment regulations affecting all
banks holding deposits of federal
These regulations prohibit discrimi- ^
nation in hiring, promoting, training
and other personnel activities on the
part of banks accepting a Federal de­
Some 12,000 of the nation’s 14,000 M
banks are affected.
The acceptance of Federal deposits
now means that banks will be re­
quired to:
1. Establish positive equal employ­
ment policies and programs.
2. Include in all solicitations for em­
ployees t h r o u g h e mp l o y me n t /V
ag e nc i e s or advertisements a
statement that all qualified appli­
cants will receive consideration
without regard to race, creed, col­
or or national origin.
f3. Post in conspicuous places a
standard poster entitled DIS­
ITED, which has been furnished u
to all banks by the Treasury.
Complaints that banks are not ob­
serving Equal Employment policies
will be reviewed by the Treasury and
efforts to resolve such complaints by *
conciliation will be made. Any bank
found to be practicing discrimination
and refusing to end such practices
will lose valuable Federal deposits.
While all banks with Federal depos­
its are affected, some 2,000 with 50 or
more employees will be specifically re­
quired to file annual compliance re- ^
ports (Standard Form 100, EEO-1) on
or before March 31 of each year.
Banks having 100 or more employees
are already required to make such a
report by the Equal Employment Op- v
portunity Commission, and a copy will
be made available to the Treasury.
Standard Forms 100 have been
mailed to all banks which are known
to have 50 or more employees. Those
which do not receive the forms and
have the requisite number of employ­
ees may request them from Assistant
Secretary Robert A. Wallace, Equal A
Employment Opportunity Officer, U.
S. Treasury Department, Washington,
D. C. 20220.

Joins Bankers Trust, N. Y.


Charles A. Cleveland has joined
Bankers Trust Company and has been
elected a vice president of the New
York bank, it was announced by Wil- ^
liam H. Moore, chairman of the Board.
Mr. Cleveland, 43, is with Bankers
Trust’s international banking depart­
ment, assigned to the development of y.
business from domestic corporate cus­
tomers. He was formerly with the
Morgan Guaranty Trust Company.


Good Time Charley
among them!
Meaning our correspondent representatives.
Y ou d on ’t want your time wasted.
W e d on ’t want our men to waste their time or yours.
So we’ve screened out glad-handers.The men we
send you will give you a hard-working hand. Sure
they can give you all the little extras. But more importantly,
they can deliver ideas that could mean extra profits.
Look for Citibankers to do business from the first
sit-dow n—with zest and imagination. N ot with chit-chat.
W e ’ve trained them to think o f good times all right.
In terms o f good business— not living it up.


Member Federal Deposit Insurance Corporation

U p t o w n H eadq u arters: 3 9 9 Park A v e n u e

D o w n to w n H eadq u arters: 55 W a ll Street

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis



fite D E S K

[jtotmi t k fc P u M i á h M

(bsu aiL . ? {jo n w i^

JL. < £ w m q A ix y fL :

Chairman, First National Bank of Chicago,
Chicago, Illinois.

Your bank is to be commended for the far­
sighted recruiting program aimed at the liberal
arts senior.
Under the program, liberal arts graduates will
be given a chance to work for their M.B.A. degree
at the University of Chicago, Northwestern Uni­
versity or other leading Chicago universities with
tuition, fees and books paid by the bank. In addi­
tion, they will receive a competitive salary for
their full time bank work and thorough training
in all phases of banking.
During their 2 ^ years of night school their
training program will be coordinated to their pro­
gram of study. The scholars will attend weekly
seminars and lectures designed to integrate their
graduate study into the broad pattern of banking
theory and practice. To further assist the scho­
lars, First National will set aside six hours each
week from their regular working assignment for
Perhaps banks throughout the N orthwestern
B anker area might adopt a similar program on
a smaller scale for undergraduates at their local
four-year colleges and junior colleges. Although
night school training might not be available, a
work pattern could be arranged to conform with
classroom hours.

(b& aic d i& ru u f d t . J ' jojlvI& l :
Secretary of the Treasury,
Washington, D. C.

In a speech prepared recently for the Bond Club
of New York, you stated that if President John­
son’s 6% surtax proposal is not approved by
Congress it could cause ‘‘very serious” problems
under today’s economic conditions. You elabo­
rated by saying that aside from the economic im­
plications of the tax, it was needed to help finance
the war in Yiet Nam.

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

Having experienced some problems with prompt
delivery of mail lately, we are wondering if your
speech may have been “ delayed enroute.” Your
recommendations may have been more timely if
they had been made 12 to 18 months ago.


Leading economists predict that the Federal
cash deficit will be about $11 billion through June
30, 1967, and next year the deficit could be as high
as $15 to $16 billion, assuming no tax increase is
voted by Congress.
AVith surveys showing a sharp deterioration in
consumer buying habits and an enormous accumu­
lation in the rate of inventories, deflationary tax
measures might be the worst answer to our current
problems. The Federal budget for the rest of the
fiscal year and for fiscal 1968 does little to en­
courage the consumer. The proposed 6% tax sur­
charge would remove some $2 billion from con­
sumer spending during the last half of 1967— but
proposed increases in social security payments
would add back a like amount over the same
Rather than face the adverse psychological im­
pact of a tax increase, we suggest that Congress
make every effort to cut government spending.


There is no question that the war in Viet Nam
must be financed, but you and others in the A d­
ministration would leave us to believe that this
may be only a short term commitment and that a
tax would be only temporary. Many of the taxes
we are already paying are “ temporary”— having
started 30 years ago.
Even when hostilities cease in ATiet Nam, heavy
expenditures are likely to continue for such pur­
poses as military occupation and the sponsorship
of rehabilitation programs. Under the circumstances, Congress should take a long-range view,
budgeting available dollars to the best advantage
without asking for additional money from the
already burdened taxpayer.

V Y la k jo h fL

J / ism la n jcL






C liffo rd C. S o m m e r, p re sid e n t, a nd N o rm a n L. W icklow , vice p re s id e n t, o f the
S e c u rity B a n k & T ru s t C om p a n y in O w atonna, M inn e so ta , say "H y -L in e M id w e s t Cage
Layer U n its have been a ve ry s u cce ssfu l in v e s tm e n t fo r o u r b a n k .”

"W e plan to finance more Hy-Line
Midwest Cage Units"
Hy-Line Midwest Cage Layer Units have proven
to be sound financial risks, note Minnesota bankers
Clifford Sommer and Norman Wicklow.
“ We’re going to finance more of them in the
Owatonna area,’’ say both executives, “ because our
experience has been so satisfactory.”
They feel that Midwest Cage Units give farmers
an ideal way to put available family labor to good use
on a year ’round basis. “ Improvements in poultry
breeding and housing are bound to make
new units even more profitable,” add
Messrs. Sommer and Wicklow.

Layer Units. Many Hy-Line distributors work
closely with local bankers to help their customers
obtain financing and set up sound money
management programs.
These Hy-Line Midwest Cage Unit owners can
expect to earn a good return on their investment.
Same holds true for you and your bank.
There's less credit risk involved when you finance a
poultry operation filled with layers that consistently
prove their profitability.
That’s why bankers give Hy-Line layers the
credit they’re due.

D is tr ib u to r s se ll, s e rv ic e u n its

Over 100 farmers in Minnesota, Iowa, Missouri,
and North and South Dakota have Midwest Cage

D e s M o in e s , Io w a

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


stands for:
" © “O R R E S P O N D E I M T . . .
“© A R E ,“© ”0 U R T E S Y , “(g° A S H ,
“© ”A P A B IL IT Y ,“(g ”O O P E R A T IO I\l

am T(S°0 U IM T L E S S other reasons
to bank under the BIG “(c f at
rrThe Bank that Cares”

“(c r

B a n k U n d e r t h e B ig " C "



L ocust a t S ix th A v e n u e




D riv e -In / W a lk -U p T e lle r


F ifth and G ra n d

M e m b e r F e d e ra l D e p o s it In s u ra n c e C o rp o ra tio n

N orthwest ern Banker, March, J967
Federal Reserve Bank of St. Louis


Des M oin es, Iow a

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Hank H n iM in y's Sales A r e I p
ALES volume of Bank Building
and Equipment Corporation, St.
Louis, was $29,753,898 for 1966, a gain
of more than $1 million over 1965. Net
earnings of $1.26 per share and an alltime high in business backlog of $43,000,000 scheduled for completion in
1967 and 1968 were noted in the com­
pany’s annual re­
port released by
L. J. 0 r a b k a,
chairman of the
M r. O r a b k a
not ed that the
backlog of orders
was a healthy 8
per cent over the
1965 backlog figL .J . O R A B K A
ure- Consolidated
business secured
during the fiscal year ending October
31 amounted to $32,800,000.
Rising costs reduced net income
slightly, although this figure is still at
$1,100,000 for 1966, representing 3.7 per
cent of sales. Total assets of the
Bank Building are reported at $11,085,277, with stockholders equity of
$6,591,588 and working capital of $4,126,282.


Those who know

Know the

A cc o m m o d a tio n s, F or F rie n d ­
lin ess, F or B u d g et H a tes, For
R e so r t-lik e A tm o sp h ere . E a s ­
ily A cc e ssib le to all H ig h ­
w ays.
* 105 D e lig h tfu l R o o m s and
S u ites
* H ea te d
K in g -S iz e
S w im ­
m in g Pool
* C o m p le te H o tel S ervice
* 2 4 -H o u r S w itchboard
* F ree T V
* P la y A r e a for C hildren
* B a b y S itter S ervice
Redw ood
D in in g
R oom ,
C offee S hop , C ock tail L o u n g e .

Ample Free Parking in
Front of your Room
$ 8.50 to $ 9.50
$12.50 to $14.00
Children Under 12 FREE in same
room with Adults.
Wire or Write for Reservations

Jet. Highways 100 and 55 Wesi
Minneapolis 22, Minnesota
Minutes from Downtown —
15 Minutes from Met Stadium,
Home of the Twins and Vikings
20 Minutes from Int. Airport

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

The annual report shows that sales
of Bank Building and Equipment have
grown approximately 75 per cent from
the time of the 1956 report through
1966 to their present level of nearly
$30,000,000 annually.
Bank Building does business almost
exclusively with the nation’s large
and small financial institutions.

keting research in Bank of America’s
San Francisco head office.

S e r v ir e A w a r d

B o f A Executive Promotion
The election of C. M. van Vlierden
to senior vice president with new re­
sponsibilities for coordination of Bank
of America’s international business de­
velopment and credit activities was
announced last month by President
Rudolph A. Peterson.
Mr. van Vlierden has been vice pres­
ident in charge of the bank’s exten­
sive international activities in the Eu­
ropean area for the past five years.
In addition to his new duties he will
continue to head the European Divi­
Mr. Peterson also announced that
Bernard C. Taylor has been promoted
to vice president in charge of mar-

FOR OUTSTANDING service to the home
building industry and to the community,
the First National Bank of Saint Paul was
presented the St. Paul Home Builder’s
Association Award for 1966 at a recent
all-industry meeting in Saint Paul. The
award originated in 1957 and this is the
first time it has been presented to a finan­
cial institution. In photo above, Edward
J. Welsch, v.p., 1st Natl., is receiving the
award from Warren Wildasin (left), exec,
dir. of the Home Builders Assn., and Ken­
neth Reinhardt, pres, of the association.



To Stadi/ **#’k eek less S o c ie ty 99
the American economy really
without the use of bank

checks? If it can, what will be the
impact on banking and finance?
The search for answers to these and
other questions will be the task of
the new Checkless Society Committee
of The American Bankers Associa­
tion. Dr. Charles E. Walker, executive
vice president of the A.B.A., an­
nounced in February that W. Putnam
Livingston, vice president of Bankers
Trust Company, New York, will head
the group which will function as a
subcommittee of the association’s
Automation Committee.
Member of the group have been
chosen to represent a broad spectrum
of banking including management,
economics and operations, as well as
data processing.
Describing the work of the new
unit, Robert K. Wilmouth, chairman
of the A.B.A. Automation Committee
and vice president of The First Na­
tional Bank, Chicago, said: “The group
will be seeking answers to such
queries as ‘What is a checkless so­
ciety?’ ‘When, if ever, will it arrive?’
‘What are the implications for the
consumer, the bank and the economy?’
‘What must the banking industry do
today to prepare for the eventualities
of the future?’ ”
In addition to Chairman Livingston,

subcommittee membership will inelude: James K. Dobey, senior vice
president, Wells Fargo Bank, San
Francisco; Theodore K. Keith,, senior
vice president, First Union Bank of
North Carolina, Charlotte; Charles
Block, vice president, Chase Manhat­
tan Bank, N. Y.; Park T. Adikes, exec­
utive vice president, Jamaica Savings
Bank, N. Y.; David H. Morey, president, The Boatman’s National Bank of
St. Louis; Thomas E. Mead, vice presi­
dent, United California Bank, Los An­
geles; Leonard M. Selden, vice presi­
dent, Indiana National Bank, Indianapolis; Harold B. Hassinger, executive
vice president, First National Bank,
Boston; C. Gordon Jelliffe, vice chair­
man, City National Bank & Trust
Company, Columbus; Herbert E. John­
son, vice president and economist,
Continental Illinois National Bank &
Trust Company, Chcago; Richard W.
Freund, vice president, First National
City Bank, N. Y.; and Charles S. Rick­
er, assistant vice president, National
Bank of Detroit.
Dale L. Reistad, A.B.A. deputy manager and director of the Department
of Automation, will serve as secretary
to the subcommittee and liaison mem­
ber of an A.B.A. Federal Reserve, and
N.A.B.A.C. group coordinating re­
search activities in the checkless so­
ciety area.







Will our 624M

replace Bob Walcott?
As you can see, the machine counts bills so fast, they're a flashing blur in the photograph. But the
624 doesn't jump up and down during a hockey game the way Bob does. It's not a Johnny Carson fan.
It doesn’t even own an Alaskan Malamute like Bob's.
So, don’t worry. Bob will be dropping in on you as usual. Ready to lend a hand with overlines—
individual or corporate. Ready to do everything he can to be of service.
Need information or service right now? Call Bob at (312) FR 2-9200. If he's not available, just ask for
John Baldauf. You’ll have an ANB action-banker out your way—pronto.



r i c





t i o










Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1967


"/'Viih í / i/

H a n hi

in 1955. The mother of the family
nin N orth
was a director of the bank for many
years and still served in that capacity
at the time of her sudden death in
March, 1966.
The Citizens State Bank is open today due to Mr. Vorachek’s efforts. Dur­
ing the depression’s lowest ebb, the
bank’s owners decided to close. How­
ever, Mr. Voracheck elected to single- -i
handedly assume the bank’s obliga­
tions. To keep the bank open during
this time and meet obligations, he put
everything he owned, including his v
life insurance policies, into the bank.

Win. Camp Officially
Becomes Comptroller

THE VORACHEK FAMILY. Seated: James H. Vorachek, pres. Standing, from left:
Joseph W. Vorachek, tax consultant; Georgetta I. Vorachek, a.e.; Roger F. Vorachek,
v.p.; LaVerne Vorachek Gaarder, v.p.; Emmett J. Vorachek, v.p.; Marjorie W. Vorachek,
cash.; and Wilmer J. Vorachek, v.p.

of “family banking”
a different sense can be found
in Lankin at the Citizens State Bank.
James H. Vorachek is the active
president of the bank, and has been
since the early 30’s. This is not un­
usual, perhaps, but Mr. Vorachek is
86 years old and joined the bank in
1905—62 years ago.
The “family banking” factor be­

comes evident when you realize that
every officer of the bank and its sub­
stations in Edmore and Edinburgh are
also Voracheks. Six of Mr. Vorachek’s
sons and daughters are currently in
the bank with him.
M. W. Vorachek, cashier, informed
the N o r t h w e st e r n B a n k e r that an­
other brother, Harold J., was vice
president of the bank until his death

William B. Camp was given quick
endorsement as Comptroller of the
Currency by the Senate Banking and
Currency Committee and then the en­
tire Senate body. He was appointed
to the post by President Johnson on
a temporary basis last fall to succeed
retiring Comptroller James J. Saxon.
Mr. Camp has named Justin T. Watson to Mr. Camp’s former post as First
Deputy Comptroller. Since 1962, Mr.
Watson has been in charge of bank
supervision and examination.
Mr. Camp also announced the ap­
pointment of Wayne G. Weachman as
his administrative assistant.
Two new assistant chief national
bank examiners are Michael Doman,
Jr., whose area includes Regions 7
(Chicago) and 9 (Minneapolis), and
John L. Donovan, whose area includes
Region 10 (Kansas City) and Region
12 (Denver).





"T ra d ei* o f Y e a r 39

THE HONOR as tlie 1966 World Trader
of the Year was presented recently to
Clarence A. Wisby (center), v.p., North­
western Natl., Minneapolis, at the annual
bosses’ night meeting sponsored by the
Minnesota World Trade Assn., the inter­
national trade committee of the Minne­
apolis Chamber of Commerce, and the
Foreign Policy Assn, of Minnesota. Mak­
ing the award presentation at right is
Gerald L. Moore, exec. v.p. and secy., Minneapolis Chamber of Commerce. A t left
with Mr. Wisby is Raymond Clausen, sr.
v.p., Northwestern Natl., Minneapolis.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis





C h ica g o . I n a n i

He told the stockholders that even
though the 1966 total was about $13
million under the record breaking 1965
mark, he regarded the 1966 effort as
“phenomenal” in view of the money
The Ziegler firm also recorded $60,000,000 of new interim commercial
paper sales to bring the 1966 sales
total to over $176,000,000. The com­
pany has loans in negotiation aggre­
gating almost $150,000,000.

New Charge Card Plan
First National Bank of Chicago has
added an automatic saving feature to
its charge card which enables a card­
AWARDS for outstanding displays at
Harris Bank are presented by Robert Lind­
quist (right), v.p.-marketing, to Thomas
M. Mocella, bank’s display mgr., and Rich­
ard Kennedy of Richard Kennedy Design
Associates, the producers.

Heller Reports Record Year
Walter E. Heller & Company net
profits, gross loan volume and yearend net receivables for 1966 were the
highest in its history, the Chicagobased commercial finance company re­
ported recently.
Norman B. Schreiber, president, said
that net income for the year ended De­
cember 31, 1966, was $9,252,612, an in­
crease of 5.5 per cent over $8,773,106
reported for 1965. After preferred
dividend requirements, earnings per
common share rose 6 per cent to a
new high of $1.06, compared with $1
earned in 1965.
Mr. Schreiber said that year-end net
receivables reached $495,087,396, an in­
crease of 3.7 per cent over $477,295,136
net outstanding at year-end 1965. Mr.
Schreiber also said that gross loan
volume increased by 13.5 per cent
from $2,349,187,069 in 1965 to $2,666,492,512 in 1966.
Mr. Schreiber noted that the com­
pany’s finance operations were re­
stricted by tight-money-market condi­
tions and rising money costs in 1966.

holder to deposit a specified amount
each month into his savings account
and charge it on his FirstCard.
A form is being mailed now to the
one million Chicago-area families who
hold FirstCards. By signing the form
and indicating on it which of the
FirstCard banks holds his savings
account, a cardholder will then be in
a position to pay for his purchases
and deposits to his account with a
single monthly payment.
In another development, FirstCard
announced it has chosen a suburban
family named First to survive for the
month of March without cash—mak­
ing all of its purchases with FirstCard. The bank is picking up the tab.

Make Your Reservations Now
for the

Installment Credit Conference
in Chicago
March 20 thru 22, 1967
In D o w n t o w n


B u s i n e s s is a l w a y s
a P l e a s u r e at the

Just south of the
Conrad Hilton
—for business and relaxation

ALL FREE— Parking on premises.
Radio & TV, Wake-up Coffee, Ice
Cubes, Courtesy Car Service, Heat­
ed swimming pools.
Fabulous Bumbershoot’s Restau­
rant and The Cave Cocktail Lounge
— entertainment— Room Service.
Meeting rooms fo r up to 600.
Hospitality suites. Private Banquet
facilities. Motel convenience with
full hotel services.

Ziegler Sales $ 1 0 0 Million
Stockholders of B. C. Ziegler and
Company were told at the annual
meeting in West Bend, Wis., that 1966
bond sales were the third highest in
the 53-year history of the company
and exceeded the $100 million mark
for the fourth consecutive year.
The Ziegler firm is the largest un­
derwriter in the country of institu­
tional bonds for churches, schools,
hospitals and retirement homes.
Thomas J. Kenny, president, stated
the 1966 sales total was $116,379,000.
Federal Reserve Bank of St. Louis

W A 2-2900

TWX 312-431-1012
Recommended by A AA .
Chicago Convention Bureau.
Chamber o f Commerce.
Make reservation direct, or
through any travel agent— or
Best Western Motel.
W r i t e now for Reservations
Dept. 6073

Northwestern Banker, March, 1967


installment Credit Conference
Features Credit Curd Fu nel
ANKERS who have subscribed to
seven different credit card plans
will explain their programs to the Na­
tional Installment Credit Conference
to be held in Chicago March 20-22 at
the Conrad-Hilton Hotel.
Each banker will talk for about 10
minutes on the plan he has selected.
Both bank and non-bank-sponsored
programs will be covered. Then, ques­
tions will be invited from among the
1,800 bankers expected to attend the
meeting held by The American Bank­
ers Association.
Credit card plans that will be dis­
cussed include American Express,
BankAmericard, Bancardchek, Carte
Blanche, Instant Transactions Corp.
of America, Interbank and Midwest
Bank Card.
Later, the bankers will hear Under
Secretary of the Treasury Joseph W.
Barr speak on the Federal-guarantee
student loan program. Another speak­
er will be K. A. Randall, chairman of
the Federal Deposit Insurance Cor­
poration, who will talk on installment
credit from the viewpoint of a super­
visory agency.
Charles Agemian, executive vice
president of the Chase Manhattan
Bank, N.A., is scheduled to give a pro
and con talk on credit cards. He will
be preceded by J. Howard Laeri, vice
chairman of First National City Bank
of New York.
Other speakers will include Con­
gressman Richard H. Poff (R.-Vir­
ginia), who will report on a House
bill he sponsored on wage earner
bankruptcies; and Dr. Paul Nacller,
finance professor at New York Uni­
versity, who will speak about install­
ment credit developments in the near

Future of Fed Policy Is in
Hands of President Johnson
One of the most important decisions
relating to financial management of
the nation’s banks and control of mon­
etary policy will have to be made soon
by President Lyndon Johnson. The
term of William McChesney Martin,
Jr., as chairman of the Federal Re­
serve Board of Governors expires
March 31. Mr. Martin would still be
a member of the Board to complete
his term as a director.
A law apparently discovered by
chance has been brought to the atten­
tion of the President, requiring the
retirement of Charles N. Shephardson
from the Board at the end of April
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

when the Governor is 71, and com­
pletes 15 years of federal service. The
law requires retirement of a federal
employee, including Presidential ap­
pointees, at that age, and with 15
years of service, although the Presi­
dent can request that an appointee be
President Johnson has three mem­
bers on the seven man Board of Gov­
ernors as his appointees. If he ap­
points a man of “liberal” leanings, it
it reported that Chairman Martin
would resign in the face of constantly
being out voted 4-3. He is reported
also ready to resign if he is not re­
designated Chairman by President
Senator Russell Long (Dem., Ala.),
assistant Senate Democratic leader,
has asked President Johnson not to
reappoint Mr. Martin to the chair­

5 W om en Bankers Promoted
Rosemary Christman, an officer in
the Phoenix home office of the Valley
National Bank, has been promoted to
assistant vice president.
Announcement of her advancement
was made by
VNB pr e s i de nt
James E. Patrick.
Mi ss Chr i s t ­
man, a Valley
Banker two de­
cades, is in the
credit anal ysi s
She is active
in the Business
and Professional
W o m a n ’ s Club,
Plus-60 Personnel, National Associa­
tion of Bank Women and the American Institute of Banking.
Hers is one of several promotions
announced for Valley Bank women.
Lea Morrison, member of the home
office trust department, was named a
trust administrator, and three women
were promoted to assistant cashier:
Virginia White of the instalment loan
administration department, and Mary
Andrews and Margaret Self, both of
the investment department.
Mrs. Morrison holds the distinction
of being the only woman member of
the Phoenix Society of Financial

Elect 3 New Directors
The election of three men to the
board of directors and the retirement
of Robert Henry Berry, cashier, have




been announced by F. G. McClintock,
chairman of the board and chief execu­
tive officer of the First National Bank
and Trust Company of Tulsa.
Elected to the board were Stanley
D. Breitweiser, executive vice presi­
dent of Cities Service Oil Co., George
O. Nolley, oilman, rancher and in­
vestor, and Joseph L. Parker, chair­
man of the board of Catalyst and
Chemicals, Inc.
Mr. Berry retired after 27 years
with First National and 45 years in
banking. Succeeding him will be Orin
H. Gault, who is a vice president.
Mr. Gault has been with the bank for
40 years, and was named a vice presi­
dent in 1956.
Promoted from auditor to assistant
vice president was Kenneth R. Bar­
ton. Gerald D. Cantrell was named
auditor succeeding Mr. Barton.




1966 Best U. S. Bond Year
Kenneth E. Glass, regional director,
U. S. Savings Bonds division of the
U. S. Treasury, Des Moines, reports
that 1966 was the best in 10 years for
E and H Savings Bonds sales and re­
flected a national increase of 8.3 per
cent above 1965 with cash sales total­
ing $4,860,000,000.
Following is a report on sales of
the E and H bonds (in thousands of
dollars) for eight states in N o r t h w e s t ­
ern B a n k e r area:
12 Months Per Cent
North Dakota
South Dakota

6 ,0 0 0 Banks in Foundation
More than 6,000 banks, representing
74 per cent of deposits in the United
States, are now members of the Foun­
dation for Commercial Banks, Richard
B. Beal, executive director, has an­
nounced. There were 97 new members
in the last report. In N o r t h w e st e r n
B a n k e r area, this included the Mechanicsville Trust and Savings Bank,
Mechanicsville, and Central State
Bank, Muscatine, both in Iowa.




"W e are rem in ded by Joe E. W e lls ,
editor o f the C O L O M A C O U R IE R o f
Colom a, Michigan, that each year when
the circus com es to town, with the same
old ballyhoo, it meets the same enthu­
siastic reception it g ot when we were
kids because each year there are "two
m illio n p e o p le w h o never saw an
elephant” .
Each year two m illion citizens grow up
and for the first time experience the
thrill o f tasting Phil’s Famous Ham­
burgers or Scott’s Sundaes . . . o f using
a safety razor or trying out various
shades and flavors o f lipstick. So many
wonderful things are "discovered” each
year by so many p eople and at all differ­
ent age levels.
Just think! If we w ho have things to
sell stopped telling people about them
for even a short three-year period, there

w o u ld be six m illio n p e o p le w h o
w ould never hear about them and p rob­
ably many millions more w ho would

It is perhaps trite to say that the job
o f selling is never done, but some o f us
need the reminder. H ow many m illion
people never knew they could borrow
small sums o f m oney from legitimate
banking institutions? H ow many realize
how inexpensive it is to use the check­
ing facilities o f banks? As a matter o f
fact, how many d on ’t know the advan­
tages o f using Personalized Checks,
even though we have been consistently
emphasizing their advantages for the
past eleven years?
N o n e o f us have even begun to tell the
story, and even when we do tell it to
everyone there will still remain those
two m illion new people who each year
hear it for the first time.

Manufacturing Plants a t:







A reprint from an
April 1950 advertisement
by George W . McSweeney

For many years— in fact as far back as the late 30’s —
DeLuxe has been advertising in banking publications
using plain “ copy” ads that were supposed to be inform­
ative since they lacked eye appeal. Beginning this
month, however, we will be using full-page illustrative
ads entirely, as we have become convinced that it’s
time for a change. It is with some nostalgia and a tinge
of regret, though, that we mark the passing of these little
“box” ads to which we had become so accustomed.
Through the years their titles and subjects reflected
the chronology of our progress, policies and ideas,


while attempting to sell our product. The statements
made by a business organization in paid publication
advertising oftentimes rise up and haunt it. A t other
times they serve also to demonstrate a consistency of
policy. W e hope that the latter has been the case with
our advertising.
W e thank the many readers with whom we have tried
to communicate during these years and, in keeping
with the theme of the little ad reproduced above, we
will continue to tell our story, trying to reach those two
million people (maybe three million now) who never
saw an elephant.








Northwestern Banker, March , 1967
Federal Reserve Bank of St. Louis


We know California business from start...

to finish.
Mary Pickford, Douglas Fairbanks Sr., Francis X.
Bushman— these were the stars, when Bank o f
America first put money into movies. Today, we get
top billing in Hollywood— as the industry’s leading
source of financing in California. Working behind the
scenes, Bank of America provides the experience, the
resources and the banking services the movie indus­
try needs. The picture’s the same in other businesses,
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

too. From agriculture to mining, Bank of America
provides every type of service: payroll processing,
profit sharing plans, leasing, loans. For complete cor­
respondent service get in touch with our National
Division, 300 Montgomery Street in San Francisco,
or 650 South Spring Street in Los Angeles.





S e c o n d a ry
M a rk e t

HE primary marketing of state
and local government securities
might be thought of as their sale
by the issuing governmental units to
the initial investors through the offi­
cers of the investment banking com­
munity. Secondary marketing, by re­
sidual definition, is the sale of such
securities by one investor to another
investor, usually through the inter­
mediary services of a security dealer.
Possibly more than any other type of
security, municipal bonds are bought
for investment. By and large, they
lie in a safe deposit box undisturbed,
except for a periodic clipping of cou­
pons. Secondary markets arise out
of the fact that investors need pro­
ceeds prior to maturity for one reason
or another.
When new issues come out the pat­
tern of yields is, to a considerable ex­
tent, set by the offering price of bonds
in the secondary market. On the
other hand, prices of new issues may
have an influence on quotations of
bonds traded in the secondary mar­
ket. Millions of dollars of bonds of
old issues are traded “over the coun­
ter” every week. In view of the size
of the secondary market a wide selec­
tion of seasoned municipal bonds may
fit requirements as to credit and ma­


Aids Buyers and Sellers

The principal economic function of
a secondary market in securities thus
is to reconcile the needs of investors
who find it necessary to dispose of
holdings with the needs of sellers.
Some investors—insurance companies
are classic examples—can wait for ul­
timate repayment without worrying

Cash for Seller
Profit for Buyer

about access to the funds they have
invested. The principal investors in
state and local government securities
have, at various times and under vary­
ing circumstances, potential need for
access to the funds they invest before
the ultimate maturity of the securi­
ties they have purchased. Individuals
are the leading buyers of such obliga­
W ritten Especially fo r
The Northwestern Hanker

Vice President
lowa-Des M oines National Bank
Des M oin es , Iowa

Commercial banks take an under­
standable interest in the marketabil­
ity of the securities in their portfolios.
Commercial bank loans and other
needs for funds are quite unpredict­
able, as recent experience has demon­
strated. A commercial bank may find
it quite expedient to sell off invest­
ments well in advance of maturity, if
it can do this without cost or losses.
Wide Range Through Dealers

The secondary market in state and

local government securities is an
“over the counter” market. The size
and character of this market is not
known except in a fragmentary way.
A large fraction of the secondary mar­
ket is a dealer-to-dealer market. This,
of course, is quite characteristic of all
over the counter markets. A dealer
who cannot supply a customer with
the type of security desired from his
own inventory will acquire it from
another dealer. One function of a
trade publication called the Blue List
is to permit dealers to service their
customers from the whole range of
offerings made by all other dealers.
The services of the secondary market
to ultimate investors are improved by
virtue of a free and active market
among dealers. Investors can get
access to a much wider range of buy­
ers and a much wider range of secu­
rity offerings th rou g h inter-dealer
In the case of most successful un­
derwritings, the bonds soon appear in
the secondary market at a premium
over the offering prizes. This, of
course, is not true of unsuccessful of­
ferings. But since successes outnum­
ber the failures there is a presump­
tion that a buyer of new issues should
get better bargains than if he waited
to buy in the secondary market. The
appearance of an unusual volume of
a given issue on the market depresses
the quotations for that issue. This
concentrated pressure on one area
may also be a general market factor
but one so slight that its influence
cannot be traced.

(Turn to page 46, please)
Northwestern Banker. March. 1967
Federal Reserve Bank of St. Louis


Ammali Homi aiml In voltinoli t R e v ie w

0bo o ti 1 ir itis A t t r a e l
H a n k s to A i a a ¡r i p a i A i a r k r t

SPOT check with 84 banks in
the $4-$20 million deposit range
in the upper midwest shows
that 55 per cent increased their hold­
ings of municipal bonds during the
past year, 29 per cent maintained the
same level as earlier, and only 16 per
cent liquidated any municipal hold­
ings to obtain lending funds.
In addition, the survey shows that
at least 12 per cent of the banks plan
to increase their municipal bond port­
folio in the next six months, while 62
per cent will remain stable, and 26
per cent think they may decrease mu­
nicipal volume in the next six months,
principally by not reinvesting rollover
until a later date after loan demand
or the investment market is better
known. In any event, 74 per cent of
the banks will replace maturing mu­
nicipals or increase them in the next
six months.
The figures referred to above are
contained in Charts 1 and 2, in re­
sponse to Questions t and 2 in the sur­
Question 3 asked, “Of your bank’s
total investment portfolio, what per­
centage is in Municipal Bonds at this


Chart No. 1
"W h a t has been your policy on Mu­
nicipal Bonds during the past y e a r? ”
Increased— 55%
Held Same— 2 9%
Decreased— 1 6%

N orthw estern Banker, March, 1967
Federal Reserve Bank of St. Louis

Responses from the seven states
show that these 84 banks average just
over 27 per cent of their investment
portfolio in municipal bonds. The re­
plies from Montana carried the high­
est percentage — 37 per cent — while
South Dakota was lowest with 21 per
cent. The other five states were close­
ly grouped at the average.
There is a noticeable variation in
the percentage of municipals to the
total in v e s tm e n t portfolio among
banks over $10 million deposits. In
Iowa, for example, in banks over $10
million the municipals constituted 51
per cent of the investment portfolio
among the banks surveyed, and 23 per
cent for those banks under $10 million
deposits. In Nebraska the comparable
figures were 40 per cent and 19 per
cent. These variances served to stress
the importance attached to the taxfree aspect of municipals as bank in­
come rises with the size of bank.
Question 4 shows maturities of these
municipals are well scattered across
the range of years, with the highest
concentrations in the 1-10 year range.
A number of banks have lengthened
their maturities into the 11-15 year
range, while a smaller, but significant
number have invested in municipal
maturities beyond 15 years with good
rates. Obviously, maturities must be
tailored to the needs of each bank.
Question 5 was “What percentage of
your Government obligations mature
with one year, one-five years, five-10
The accompanying chart shows that
32 per cent of Governments in these
banks mature with one year, 51 per

cent in one-five years, and 17 per cent
in five-10 years. In Governments,
more of the banks under $10 million
tended to stay in maturities of less
than one year, and the one-five year
range than did the banks in excess of
$10 million deposits. The variance in
most cases were not very distinctive,
Following are comments received
on these questionnaires from a few of
the respondents:
Question 1
“What has been your policy on Mu­
nicipal Bonds during the past year
regarding purchases and maturities?
Did you replace your runoff, increase
it or reduce it? What were the principal factors determining this policy?”
Iowa, $21.9 million deposits: “We

have maintained a very aggressive
policy, having substantially increased
our Municipal portfolio. Because of
our liquidity position we were able to
take advantage of the high yields of­
fered without disturbing our over-all
investment policy.”
Iowa, $5.5 million deposits: “Our mu­
nicipal bond portfolio this past year
has been one of purchase with maturi-

Chart No. 2
"W h a t do you a n tic ip a te as your pol­
icy on M unicipal Bonds in the next
six months?"
^ 1 Increase— 12%






ties not to exceed 10 years. Run-off
has been replaced and the portfolio
increased approximately 40 per cent
from January 1, 1966 to January 1,
1967. Factors pointing toward expan­
sion of the portfolio have been yield
and income tax considerations.”
Iowa, $5.5 million: “The only pur­
chases were to replace the runoff.
Tight money kept us out of the lucra­
tive market.”




“ Last fall, due to the extremely high
returns, we purchased some munici­
pals in excess of our normal runoff
and locked the yields in for a fairly
long period of time.” (This bank re­
ports 54 per cent of its portfolio in
municipals, and 47 per cent of the mu­
nicipals in the 10-15 years maturity
Nebraska, $9 million deposits: “Re­
placed runoff only. Our directors felt
that local demand for finance would
keep this bank from any increase in
this department.”
Minnesota, $10 million deposits: “We
increased our total municipal pur­
chases. Reason: unusually light local
demand for loans, thus reducing the
necessity of maintaining high volume
of liquidity.”




“We did not replace our runoff. In­
creased interest costs reduced our
taxable income below the 48 per cent
bracket. We did some switching be­
fore year-end which raised our cur­
rent yields and lengthened maturi­
South Dakota, $8.2 million deposits:

“ Runoff replaced. Maturities some­
what increased. One-third of our in­
vestment account is kept in munici­
pals. The purpose is to provide tax
free income, with reasonable liquid­
North Dakota, $8 million deposits:

“ We replaced runoff and we buy $10,000 each month and have approximate­
ly that many running off. We main­
tained our previous level of munici­
pals without adding to or running
o ff.”

North Dakota, $9 million deposits:

“We increased our portfolio about 25
per cent during the last half of 1966.
It was our opinion that yields were
the best they would be for some time
to come.”
Question 6
“What, in your opinion, are the
most interesting developments in the
investment market today for banks?”

A sampling of the interesting re­
sponses follows:
W yom in g,




feed continuing

Chart No. 3

M innesota,

" O f your bank's to ta l investment p o rt­
folio, w h at p ercentage is in M unicipal
Bonds a t this tim e?"
All rep ortin g banks ...................
(By states)
Iow a



......................................... 27.6%

M ontana






North Dakota ..................................





............................................ 24


South Dakota


“ Some easing of the demand for new
Montana, $6 million deposits: “Rap­
id change of rates and yields in short
periods. One cannot believe the sud­
den increase in yields during late 1966
was of any benefit or that it should
have been allowed to happen.”
Montana, $8 million deposits: “The
exceptionally high return on invest­
ments, particularly municipals, with
most country banks having the money
to take advantage of them.”




“The change from Governments to
to Municipals and the increased use
of the Federal Funds market.”
North Dakota, $9.2 million deposits:

“Public demand for higher interest
rates on savings vs complete reverse
political policy of general lower bor­
rowing rates.”
North Dakota, $8 million deposits:

“How to stay above the CD rate and
still make a little profit.”
South Dakota, $8.2 million deposits:

“The rapid shifting in yields over six
months (August to February). The
higher cost of savings accounts forc­
ing the bank to seek more income.”
South Dakota, $4.3 million deposits:

“The lowering of the government in­
terest rates while the government
goes farther and farther in the red.”




“The ability to get a high return on
short-term investments. We are prob­
ably now reaching a period when this
return will not be as high as it has
been in the last two years and we
probably should be looking at the
longer term bonds such as a five-year
Minnesota, $6 million deposits: “The
apparent unstable policies projected
by the Federal Reserve System are go­
ing to cause us to keep a high ratio
of liquidity and flexibility.”
M innesota, $10 million deposits:

“ The apparent failure by brokerage
houses to recognize continued tre­
mendous demand for bank funds to



$10 million deposits:

“The ability of the Federal Govern­
ment to drive down and lower the
interest rates by its realistic budget
has created a temporary situation
which cannot last. Banks are still be­
ing forced into paying high rates of
interest on CD’s and are finding it
necessary to borrow billions of dol­
lars from the European market to
meet the demands of borrowers. How,
then, in view of this tremendous de­
mand for money can the interest rates
continue their downward trend? I be­
lieve that Government intervention in
the bond market will lose its desired
effect and that before the Government
fiscal year ends, bonds will be yield­
ing a higher rate of interest and that
Municipal Bonds will be selling at a
lower price. Therefore, due to our
existing liquid position we feel we
will be in a prime position to take
advantage of any increased yields.”
Nebraska, $20 million deposits: “The
rapid deterioration in yields of both
Governments and Municipals. It is
quite probable that the market has
over-reacted and we will see some
strengthening in yields in both Gov­
ernments and Municipals.”
Nebraska, $16.5 million deposits: “ It
would appear to us the interesting
period for the time being is past and
we’ll be hard pressed to make sound
investments that will support our
present rates on time money.”
Nebraska, $8 million deposits:


you didn’t do tax switches and
lengthen last year you are kicking
yourself. Most of the switch to mon­
etary ease has been accomplished in
the past few months that can be ex­
pected realistically.”
Nebraska, $6.6 million deposits: “Re­
turn on government agency securities
with short maturities.”
Nebraska, $5 million deposits: “Prob­
ably one of the most interesting devel­
opments is the peaking on interest
rates in the market, and a decision
that banks will have to make on their
portfolio as to whether or not they
will remain on a short maturity basis,

(Turn to page 46, please)

Chart No. 5
"W h a t p ercentage of your Governm ent
obligations m ature within 1 year, 1-5
years, 5-10 years?"
1 Year


............ 33%

1-5 Years ............................... ............


O ver 5 Years ........................ ............


Northw estern Banker, March, 196?
Federal Reserve Bank of St. Louis


A d r a n ta ije s u í Ê H svou
I. M ax im u m MqiiUlily
2 . Capital Cains Each Y e a r


2 . Control of E arnings
4 . Capital Growth

W ritten Especially fo r
The N orthwestern Hanker
Manager Investm ent Analysis
National Boulevard Bank Chicago
Chicago, Illinois

M r. Eaton is a g radu ate of the University of Iow a and has
spent considerable tim e travelin g in the midwest w ith the
correspondent banking officers. He has more than fifteen years
of municipal bond underw riting and selling experience. He
has also attended the W h arton School of Finance.

UCCESSFUL utilization of discount bonds versus
premium issues is more than just a theory. Over
the past seven years, National Boulevard Bank aver­
aged a 4.72 per cent taxable equivalent yield from its
investment account and was one of the few banks to
realize a capital gains profit from the bond portfolio in
1966. While other major banks throughout the United
States experienced substantial bond losses because of the
need to raise more money for loans, the discount theory
of bond portfolio management, used by our bank enabled
us to take profits in spite of unfavorable market condi­
tions and should enable us to realize substantial con­
tinued capital gains in the future. This is sufficient evi­
dence for our bank to believe that the discount concept
is more than just a theory.
Approximately nine years ago we decided to follow the
then popular belief of using the hypothesis of alternate
profit and loss years. In 1958 we bought short discount
1V2 per cent Treasury Notes issued regularly in exchange
for the non-marketable 2% per cent of 1980/75 to provide
capital gain for building up a reserve against which to
charge the tax losses we planned to take in 1959. We
built up our security reserves from zero to half a million
tax-paid with the capital gains rom the lV2’s.


Nort hwest ern Banker, March, 1967
Federal Reserve Bank of St. Louis

The year 1959, as you probably remember, was more
than just a year for “adjustment.” The bottom dropped
out of bond prices and our portfolio had book losses of
2% million. The 4’s of 1969 dropped from IIOV2 down to
94 and, incidentally, never have been above 103 since.
The 1%’s, on the other hand, were back up to their cost
in early 1960 due to the attrition of the discount. This
eye-opening performance of discount bonds started us on
the present concept of portfolio management. From this
point, we decided to make every year a profit year with
the sole use of discount government and municipal
Banks that are in the 48 per cent corporate tax bracket
should look at the net yield on their bonds after paying
the tax. This net is greater on the discount bonds due
to the tax structure of the 25 per cent capital gains tax
versus the 48 per cent on current income. Purchasing
discount municipals will, in most cases, afford even a
larger net current income than a taxable treasury secu­
rity for banks in this bracket.
The eminent advantages in our philosophy of a discount bond portfolio are supported by maximum liquid­
ity, capital gains in each year, control of earnings, and
capital growth.
Maximum Liquidity


Other than buying U. S. Treasury Bills, the
alternative for a liquid bond portfolio is to have
discount bonds and not accrue the discount. The advan­
tage of the discount bond is obvious because the discount
is subject to only a 25 per cent tax and the discount on
the bills must be treated as current income and subject
to a 48 per cent tax.
When we speak of liquidity, we naturally refer to liqui­
dating at a profit and this is accomplished by making
switches in the portfolio from time to time to take ad­
vantage of the market swings.
Capital Gains Each Year



By establishing a so-called ladder of maturities of discount bonds, we are able to realize
capital gains each year and make each year a profit year.

(Turn to page 86, please)



State Fuads
toetense Against
National I 'o l/ c f /

T IS axiomatic that the broad goals
of monetary policy are in the na­
tional interest. At times these
are in direct conflict with the best
interests of specific institutions and
regions. On this there is little argu­
ment or disagreement, no matter
whether one is a Keynesian, a disciple
of the Chicago School of Economics,
a commercial banker or an adminis­
trator of a savings and loan associa­
There is considerably less agree­
ment among economists and other in­
dividuals as to such facets of national
fiscal and monetary policy as its tim­
ing, degree of action necessary and
type of action, be it open market oper­
ations, change in reserve require­
ments, change in Regulation Q, dis­
count rate, change in deferred avail­
ability schedules, “guidelines” access
to the discount window, qualitative
credit controls, or “mix” with fiscal


(Jualitative Controls

Until fairly recently it was gener­
ally accepted that “quantitative credit
controls were fairer and generally eas­
ier to administer than the qualitative
controls. However, new FRB tech­
niques are converting controls which
formerly were considered quantitative
into types of qualitative controls.
Regulation Q, and recent modifica­
tions of it, illustrate this point. Gov­
ernment and supervisory agencies
economists seem to hold to the as­
sumption that financial institutions
should “accept” the restraint imposed
upon them by the monetary authority
much as the youngster of yesteryear
was supposed to accept the spring
tonic of sulfur and molasses.

While the treatment initially was
distasteful yet it was assumed that its
longer term impact was salutory. It
might be effective for some—but it
was not effective for many.
It is rational, prudent, and in the
best interest of individual banks and
the community they represent to at­
tempt to moderate the disfunctional
part of restraints imposed on them by
the monetary authorities. It is even
more important that state and local
governments see that their actions,
such as purchase of U. S. Treasury
bills rather than depositing locally
garnered tax money in local banks,
does not compound the credit strin­
gency caused by national monetary
Some of the recent specific qualita­
tive policies of the monetary authori­
ties have resulted in specially favored
treatment of distressed non-bank finan­
cial institutions and of certain western
states. Governmental action in reduc­
ing state and local government depos­
its in a goodly number of states has
not only hurt banks, but more impor­
tant, it has hurt the economic business
base of the regions served by the
National Policy Not Equitable

Englightened bankers do not advo­
cate destructive, cut-throat competi­
tion among well operated, prudently
a d m in iste re d financial institutions.
However, it would appear that some
of the national monetary policy is de­
signed to bail out a sizable number of
western thrift institutions which en­
gaged in questionable business prac­
tices. The most recent Regulation Q
monetary policy has resulted in an
umbrella being held over S & L’s by
the banks—with the banks getting wet

Hill P ro fesso r o f
Bank M anagement
U niversity o f M issouri
Colum bia. M issouri

while the S & L’s are being kept part­
ly dry.
Paradoxically, I suspect if I were
confronted with the same set of cir­
cumstances, my policy reactions, if in
the safe role as the Fed., would be
somewhat similar. It should, however,
be clearly recognized that while the
action is politically and operationally
expedient—within the restraints of
monetary and fiscal policy mix—it is
not equitable or fair. In effect, it
manipulates the outlook of the regu­
lated institutions. On the other hand,
failure of dozens of technically insolv­
ent thrift institutions would be a se­
vere blow to our national economy
and to our banking system as well.
Though national monetary policy
has, in effect, favored certain geo­
graphic areas and certain non-bank
financial institutions, it is essential for
the strength of our nation and the less
favorably treated regions and institu­
tions, that the other regions and banks
keep their strength and vigor from
being enervated by such actions now
and at future periods of credit strin­
Local Public Funds

There are several ways these self
defensive mechanisms may be imple­
mented by the local agencies. This
column deals with only one facet, local
public funds.
Now is an appropriate and expedi­
ent time to re-examine that often mis­
understood and politically controver­
sial question of how state and local
agencies channel their “idle” funds, as
well as their not so idle demand de­

(Turn to page 107, please)
Nort hwest ern Banker, March, 1967
Federal Reserve Bank of St. Louis


Ê h u u jer S i ff n a Is: A n U n d e r w r ite r s ^

ROM the beginning of time, one of man’s greatest
problems has been that of self-discipline. History
provides us with many examples of what happens
when self-discipline breaks down—either at the individ­
ual level, the group level or the national level.
I am coming before you today with the rather painful
duty of giving you some home truths on the erosion of
self-discipline in the banking industry. These observa­
tions are based upon almost 50 years of experience which
our company has had as specialized insurors of banks.
The Bankers Blanket Bond which we developed and pio­
neered has, I am sad to report to you, become in fact
neither a prestige nor a preferred risk. Indeed, quite
the reverse is true, and today while we visit there are
at least several states in this nation where at present it
is most difficult—and in some instances impossible—for
a bank to obtain this coverage.
What has caused this change?
And what is even more important, what can the bank­
ing industry do about it?
In his very excellent talk, “Moral Responsibilities in
Banking,” Homer J. Livingston, chairman of The First
National Bank of Chicago, said, “ In my judgment, the
need for moral responsibility is more critical in banking
than it is in most other businesses since, I believe, the
possibilities for a conflict of interest are more frequently
present. This subject is at the very heart of our busi­
Mr. Livingston then went on to define “moral” which
relates to making the distinction between right and
wrong in conduct and responsibility as implying being
accountable to someone.
I am not a Baptist preacher coming before a congre­
gation with promise of reward and fear of punishment.
But hell and brimstone, almost in the Baptist tradition,
is sure to follow if self-discipline is not the order of the
day in the banking industry.
George B. Young, chairman of Field Enterprises, gave


Presiden t
Scarborough & Conipany
Chicago , Illinois

Nort hwest ern Banker, March, 1967
Federal Reserve Bank of St. Louis

a very excellent talk recently on the subject, “Beyond the
Profit Motive.” He said, “Society, looking at a man who
professes expert knowledge, imposes very serious limi­
tations on his freedom of action.” The limitations are
there, whether we realize them or not. The banker in
his official capacity is guardian of the savings of the
community as both corporate and personal funds are
entrusted to him for safekeeping. And as the lender of
these funds, the banker is the confidant of businessmen
and other borrowers in the community. Obviously, there
are many possibilities for a conflict of interest to arise
in this area alone.
Based upon some rather scorching experiences which
our company has had, along with all other companies
writing bank risk insurance, with losses on the Bankers
Blanket Bond, it is my considered opinion and judgment
that bankers as a profession must become more profes­
sional in every aspect of banking. Webster defines “pro­
fessional” as “engaged in one of the learned professions
or in an occupation requiring a high level of training
and proficiency.” Surely no one could reasonably deny
that a banker is in an occupation requiring an extremely
high level of training and proficiency . . . and further­
more that this activity is characterized by or conforms
to the technical or ethical standards of the profession.
I have just told you what you are—each of you—or
what you should be—Professionals!
Now, if you will permit me to do so, I will tell you
what you must do to correct a situation which grows
day by day and represents a distinct menace on your
I know of only three ways that the banking business
can be changed from today’s course so that the required
and necessary insurance risk covers remain readily avail­
First—the bankers can increase self-regulation, but our
history as a restless, energetic, profit-minded nation
seems to nullify, at least at this time, the benefits readily
and correctly obtained from such self regulation—unless
you act now.
Second— outside authorities and regulatory bodies can
impose increased and severe restrictions and regulations.
This is a repugnant choice for you, I am sure.
Third— the insurance carriers, whom I represent today,
can, by the selectivity of risk and by a very high rate
structure, impose actual and extremely serious and strin­
gent restrictions on the banking industry through their
Now, so that we clearly understand our relative posi­
tions, may I define for you the term and profession represented by the term “Underwriter.” The very best defi­
nition I have ever heard is one from a man who spent 50




















years at Lloyd’s of London in this profession. He defines
Underwriter as follows:
An Underwriter is a poor, bedeviled yet optimistic in­
dividual who in attempting to pick up a thin dime, stum­
bles through a $1,000 plate glass window.
For the insurance industry to take onto itself the role
of village policeman and to have the obligation to per­
form a policing function is most distasteful indeed. I
can assure you we don’t want it. But it may be forced
on us by the grim economics of the profit motive in the
insurance industry and the escalating losses which are
now mounting to alarming proportions. Let us together
take a look at the basic factors creating this change and
present situation.
In 1955 at a bankers’ convention in Atlantic City, a
very prominent banker warned the conference that bank­
ers had better change their image and stop being “ stuffed
shirts.” He was correct in his approach and I think his
talk did the industry a tremendous amount of good for
I well remember the countrywide publicity his talk and
the term “ stuffed shirt” occasioned. And it is a truism
to state banking certainly has changed its habits, its
image and its operations since 1955. For the most part
for the better, yet in some areas definitely NOT for the
However, one must consider the changes in the bank­
ing industry since 1950 to date, in total and view them as
a whole.
To illustrate—when we designed the Bankers Blanket
Bond providing you with physical peril protection for
your premises, with fidelity protection on your employ­
ees, with forgery protection on the checks you handle,
with all-risk protection on the loans and securities with
which you deal, we did not have to contend with the
present day operations of banks.
Let me explain some of the differences. When you
built new bank buildings and particularly branch banks,
you built them in an utterly charming and truly beauti­
ful style. Gone are the protective cages in most cases
—gone is the bullet proof glass, the high counters. In­
side the bank of today in many cases is a comfortable
tea room. In a fight for depositors’ money you have
created a home-like atmosphere complete with fireplaces,
sofas, lounge chairs, coffee, doughnuts—along with tell­
ers’ counters offering practically no resistance to holdups. Result: an every ascending total number of bank
hold-ups and thefts. I refer you to your ABA Insurance
and Protective Bulletins for the statistics.
Now we like the new banks and the relaxed, colorful
and homey atmosphere, but for heaven sake why not be
conscious of protection at all times in your planning.
You are no stranger to the mores of our times, the strong
shift in moral values, the tremendous increase in crime.

All we ask is that like Nellie you don’t give it away!
When we provided forgery coverage in your insurance
cover you were to a great extent using signature compari­
sons, at least above some controlled amounts. Now you
are all so busy and have such sophisticated E.D.P. and
allied equipment that the name of the game is “push-abutton” and for God’s sake process the day’s work. Look
at the statistics on forgery losses!
Too many banks today, hell bent on a “friendly image,”
are cashing checks up to certain amounts with no check
on the account or balance or payee and expect the insur­
ance carrier to underwrite the cost of this ill-conceived
and faulty Public Relations program. Why should the
insurance carriers pay for your “trade” mistakes. No
other business in the country gets paid for its mistakes
of this kind. And it’s a fool’s game for eventually you
will, through insurance rates, pay all these items your­
self, plus a profit to the insurance carriers.
When we furnished you all-risk forgery for your lend­
ing portfolio and operations, and security lending, we
did not expect that one day banking would go so trust­
ing—so loose—that you would allow supporting docu­
ments, indemnification agreements, collateral assignments
and indeed in some cases the leading instruments—the
note itself—to be executed and signed—where more than
one signature is required—not only away from the bank­
ing premises but also not under the eye of any of your
lending officers. Convenient indeed, but look at the
losses incurred when a loan goes bad and the supporting
papers are called into play and some one discovers forg­
eries of signatures! Now when these cases appear some­
one has had a real prat fall for generally these transac­
tions are in sizable amounts indeed!
In the last six months alone I have personal knowledge
of about 12 cases of this type all involving losses in ex­
cess of $50,000 and three in excess of $200,000! And in one
case no insurance was available because it was finally
determined this one bank disbursed the loan funds a full
four days before the forged papers were even signed! So
their loss was not due to forgery at all. They gave the
money away before the phony papers were completed.
Wonderful prompt loan service—but sheer damned fool­
ishness. Certainly not Professional Banking!
When we provided fidelity cover against dishonest acts
of officers and employees, we did not, to our shame, im­
agine that entire banks could be bought, controlled and
manipulated by ruthless entrepreneurs who could or
would use the phony loan route to picking the cash,
assets and liquidity of the bank to pieces! Bear in mind
these are the officers, directors and generally one or two
duped employees creating this mess in an industry where
it should never occur. When this does occur the insur­
ance carrier is in a very strange position, many times,
where demands under fidelity are made by regulatory
bodies to pay a loss, comparable to an insurance loss,
where the owners of a million dollar apartment have in­
sured it and then put a torch to it. And you all know if
you tried such a stunt, insurance law would prevent you,
as the wrongdoer and the burner of your own apartment
building, from collecting a dime of that $1,000,000 of in­
Because you are professional bankers, we have a right
to expect that you will have operational controls, audits
of your own—C.P.A. preferably—and will maintain con­
stant vigilance in every phase of your systems, to pre­
vent and discourage any possibility of any employee, in­
cluding by all means all of your officers, from running a

(Turn to page 86, please)
Nort hwest ern Banker, March, 1967
Federal Reserve Bank of St. Louis

E ditor ’ s N o t e : In his address, “ The
Outlook for Interest Rates and Invest­
ment Yields,” to the Iowa Bankers
Association in Sioux City last month,
Mr. Hummer devoted a portion of his
talk to a review of monetary policy,
with particular emphasis on last year’s
money crisis. He indicated that he
feels this is every indication that the
Federal Reserve will not act positively
to ease conditions much further and
that various events give every reason
to suppose that U. S. short-term rates
will remain in the present area with­
out important declines. The last part
of his address deals with the deficits
in the federal budget and balance of
payments. The following is excerpted
from this portion of his talk.

URNING from monetary policy
to the problems of the twin defi­
cits—federal budgetary and bal­
ance of payments — these represent
two additional forces strongly under­
pinning the existing rate and yield
The stimulative effects of the budg­
etary deficit should not be underesti­
mated. The administrative deficit is
estimated at $9.7 billion for this fiscal
year ending June 30 and is estimated
at $8.1 billion in the next fiscal year.
This current year’s deficit would be
$13,3 billion, or $3.6 billion higher, and
the next deficit $13.1 billion, or $5 bil­
lion, except for sales of certificates of
p a r tic ip a tio n in government-held
loans over the period covered by these
This bookkeeping gimmick has the
effect of reducing expenditures by a
similar amount.
The deficit estimates could be con­
servative, and some private projec­
tions place the next year’s true admin­
istrative deficit as high as $20 billion.
The huge budgetary deficits that
loom must be viewed basically as an
inflationary economic force in acting
as a stimulant to the economy. More­
over, they mean the Treasury will be
a frequent cash borrower in the next
16 months.
In the second half of 1967, Treasury
cash requirements are conservatively
estimated at $8 to $10 billion. Most
of this, of course, will be short-term
borrowing. To the extent that the
1968 deficit may be underestimated
additional funds will need to be added
to borrowings then and to contra-sea­
sonal borrowing that already is cer­
tain in the first half of 1968.
Treasury Secretary Fowler has re­
quested enough of an increase in the
debt ceiling to scrape through the re­
mainder of the fiscal year. In May he
will return to request another increase


The Outlook for interest T
Hates. investm ent Vit*Ids *


W a yne H u m m er & Co.
Chicago, Illinois


Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

in the ceiling. At that time, the Treas­
ury will also ask Congress to increase
or remove the 4!i per cent coupon
ceiling on government bonds. The
outcome of this request is difficult to
In any case, the volume of Treasury
cash financings and refundings over
the next 12 months means there will
be many opportunities for investors
to acquire new Treasury issues that
will be priced competitively vis-avis
the market.
Concerning the second deficit trou­
bling the nation, the balance of pay­
ments deficit, the government’s figures
are no more reliable than on the
budgetary deficit. Last year’s deficit
is estimated about $1.5 billion, as meas­
ured by the Commerce Department’s
conventional liquidity yardstick. This
would be $200 million more than 1965,
and constitutes a big disappointment
after expectations early last year of a
further significant reduction.
Unfortunately, even the $1.5 billion
statistic conceals the full extent of last
year’s deterioration in the payments
The deficit would have been more
than $2.5 billion were it not for vari­
ous “special transactions” such as $400
million of debt prepayments to the
U. S. by foreigners and investment
by a number of foreign central banks
and international financial institutions
of recently-acquired dollars into dollar
obligations of more than a year’s ma­
turity. Such over-one-year invest­
ments, instead of counting as liabili­
ties of the U. S. in terms of balance
of payments accounting, thus become
foreign long term investment in the
U. S., reducing the deficit.
Recently, the balance of trade has
been improving as imports have eased

off along with a slower rate of eco­
nomic advance.
But, offsetting this, U. S. bank bor­
rowings from Europe are beginning
to be repaid as credit becomes more
available and rates ease in this coun­
try, adding to potential claims on U.
S. gold.
The municipal bond market has
more than regained all of the ground
lost in 1966. The Bond Buyer index
of 20 bonds now is about 3.40 per cent,
compared with a 1966 low of 3.51 in
January last year. This level is the
lowest since November, 1965, and com­
pares with a 1955 high of 4.24 per cent.
The swift and vigorous bond market
recovery has offset 80 per cent of the
1965-66 price decline for municipals
and 75 per cent for long-term govern­
ments. This has been a typical recov­
ery, except that earlier recoveries
were accompanied by recession, which
it still hasn’t developed, and began at
much lower cyclical peaks in bond
With yields on bills and three-to-five
year governments about 1 per cent be­
low the 1966 high, and municipal
yields 85 per cent points lower than
last year’s and long-term governments
40 basis points lower, it would seem
a fair question to ask whether condi­
tions are sufficiently different now
from November, 1965, to expect significantly lower yields in the months
immediately ahead.
While opinions vary about whether
the economy is declining or pausing,
demand for funds is high, cost-push in­
flation threatens to bring about many
wage settlements of as much as 5 per
cent higher this year, and the balance

(Turn to page 55, please)










Rock Hound

Trout Buff

l R ela xin g H obbies
. . . b rin g p leasu re , e d u c a tio n , q u ie t

Saddle Tramp

TREASURE my moments of re­
laxation, whether they be found
in the west river country of Mon­
tana rock hunting; in the wilds of
Canada trout fishing; in the peace,
quiet and fresh air of Wilkin County’s
countryside riding ‘Star Hose’; or in
my basement re-establishing the nat­
ural beauty of old furniture.”
This was Duncan Barr, president of
Farmers and Merchants State Bank,
Breckenridge, Minn., talking.


Four Hobbies

Mr. Barr admits to the following de­
scriptions of himself: Rock hound,
trout buff, saddle tramp and wood
worm. These just happen to be the
four areas of recreation he enjoys
during off hours and vacation days
from his busy banking duties.
Mr. Barr’s banking days started in
1929 at Correll, Minn. During the
bank holiday, he liquidated the Correll
Bank assets and went on the road as
a trouble-shooter for banks located be­
tween Big Stone and Hennepin Coun­
ties in Minnesota.
The Farmers and Merchants State
Bank of Breckenridge added him to
its staff in 1936. He became presi­
dent of the financial institution in
January, 1959, after his predecessor,
Phillip M. Boll, retired and became
chairman of the board of directors.
Mr. Barr was born in Big Stone
County in 1910, and left the farm with
his parents when 4 years old. During
the summers of childhood, he would
ferry across the Missouri River and
spend many sunshine hours on a

Wood Worm

ranch where he worked constantly
with horses.
Saddle Tramping

This was the beginning of hobby
number one—saddle tramping.
Like all bankers just getting a start
in the industry, business demands oc­
cupied most of Duncan Barr’s time
for many years, but it soon became
evident that other interests would
have to be cultivated, allowing for
recreation and relaxation to relieve
the tensions of the business day.

So, in 1959, he bought “ Star Hose,”
a registered Quarter Horse colt, at the
Valley City, N. D., Winter shows.
Later, he bought “Cindy Cody,” an­
other registered Quarter Horse.
“ I bought them only for pleasure
purposes,” Duncan says. “ I like to
trail ride. I don’t participate com­
petitively, although ‘Cody Dakota,’ a
colt from Cindy Cody, is trained for
Western Pleasure competition. I get
my personal riding pleasure from
‘Star Hose.’
“ I go on every trail ride I can get

SEATED at his desk, Duncan Barr fondly shows the fruits of his Yellowstone River
trips. His friends often stop in to admire the specimens of “ Montana Agate” which
reveal unique designs of natural beauty when cut open by his diamond saw.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


ments of our Wilkin County
Duncan speaks tenderly
horses. “ I’ve never used a
quirt. My horses are lively,

countryof his
spur or
but gen­

Rock Hounding

THE SMILE is proof enough that one of
Dunean Barr’s real pleasures comes from
riding “ Star Hose.” He is pictured here at
Sheyene (N. D.) Federal Park during the
Broken Spur Saddle Club Trail Bide.

to. I’ve attended the annual two-day
trail ride at Alexandria, Minn., for the
last five years and ride from 50 to 60
miles during the weekend. I also
take in the Sheyenne, N. D., trail ride
each year. I often ride evenings to
take in the fresh air and other enjoy­

Mr. Barr’s rock hounding interests
started in 1960 while he was vacation­
ing along the north shore near Du­
luth, Minn. He was fascinated with
the rock shops he had occasion to visit
and availed himself of the opportunity
to pick a few “Superior agate” rocks.
He revealed the fascination he held
for this new-found hobby to his bank­
ing associates and they promptly pur­
chased a diamond saw and presented
it to him for Christmas that year.
The saw is used to cut through the
rocks to reach their interior beauty.
Mr. Barr then can polish them to a
smooth finish with sandpaper and
Mr. Barr has made several tie tacks
and clasps, belt buckles, cuff links and
other jewelry items. He has termi­
nated this work with his rock collec­
tion because, “ I want to save this
part for my retirement years. My
efforts are now being directed to the
collection of them. My interests in
rock-hounding increased rapidly after



First National Bldg.

Phone 326-2527

Teleptype 319-322-0026

Fleming Bldg.

Phone AT 2-1456

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

Teletype 515-261-4723

my children gave me several books on
the subject.” He also subscribes to
a national rock hound magazine.
“Being intrigued with the west
river country, I’ve made several trips
to the Yellow Stone River for the purpose of rock-hounding. I struck up
a friendship with a depot agent in a
small community of 50 people who is
a true ‘dyed in the wool’ rock hound,
He knows every foot of the Yellow
Stone River for a distance of 100
miles. He and I often start rock hunt­
ing early in the morning and cover
from 30 to 40 miles per day, packing
20 to 40 pounds of rock on our backs,
arriving home late at night.
“This represents a real challenge to
me, traveling by his side, which I
have done many, many times.”
Mr. Barr says he knows many of
his Breckenridge and Wilkin County
friends don’t really understand the
pleasures he receives from these dif­
ficult excursions, but his satisfaction
comes from the admiration many of
them show for the colorful display of
rocks he constantly shows in his bank
“My own son (an attorney for a
Minneapolis firm) also found it hard
to understand until I invited him as
a guest on a trip two years ago. He
hasn’t missed going with me since.”
The fruit of the Yellow Stone River
treks is “Montana Moss” or “Picture
Agate.” When these rocks are cut
open, they beam with authentic scenes
of nature. His friends agree they’re








Wood Working

Hobby number three has been a re­
cently d e v e lo p e d interest of Mr.
Barr’s. He has fallen in love with
old furniture. He expresses delight
in restoring old furniture pieces—es­
pecially those of black walnut or oak.
“ There’s nothing synthetic about
working with beautiful wood,” he
says. “ It’s nature’s natural beauty
and gives me complete satisfaction
when I’m able to again bring out the
picturesque grains of the wood.”
Duncan has a friend who attends
many auction sales for him and pur­
chases old wood items at reasonable
prices. Other friends have given him
old furniture pieces which he has re­
stored. Some he has to repair before
refinishing. He even has had to carve
new pieces to match and replace those
which have previously been broken
off and lost or destroyed.
Mr. Barr’s home is completely fur­
nished with old beds, desks, tables,
chairs and other items he’s restored.
The only modern furniture displayed






From safekeeping to

remittance our Bond
Department is just a

W e 'll be glad to handle the detail w o rk and take responsi­
b ility fo r safeguarding stocks and bonds. But th at's o n ly
the b eginning . . .
W e 'll give advance notice of m aturity dates of bonds
and sim ilar obligations, and n o tify you w hen securities
become due by call.
W e'll provide a list of securities held, as w ell as current
m arket quotations.
W e 'll accept open orders to buy and sell G overnm ent
and other securities at given prices as the market permits.
A nd w e can do all of these things just a little bit better
because our m ethods and equipm ent are co m pletely
u p -to -d a te .

little bit better

I o w a D e s M o in e s
Sixth and Walnut, Des Moines 4 • 2 8 4 - 8 6 8 6 • Member Federal Deposit Insurance Corporation

"Yes . . . we're Here to help you get what you w ant." Bob W is s le r,
V ice P resid e n t; A la n B ra g a , A ssista n t C a s h ie r; Jo h n H unt, A ssistan t
C a s h ie r; Jo hn Jo hnson , A ssista n t V ice P resident.

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Trout Fishing

OLD OAK BED is one of Mr. Barr’s favor­
ite furniture restoration projects. He had
to carve new pieces of some of the fancy
work to match the original design.

in his home would be the television
set and the electrical appliances.

Then, for a real change of pace, Mr.
Barr occasionally supplements his
recreation activities with trout fish­
ing trips to the rapid Montana River
streams or the cool, deep lakes of
“ I recommend several hobbies,” Mr.
Barr advises. “Whenever I see some­
thing different or unusual on my
trips, I often stop to investigate. Be­
ing curious and being a hobby buff
is really an education in itself. I
would never recommend a confine­
ment to just one hobby or outside in­
Mr. Barr ended the interview with:
“ I’m especially happy that my chil­
dren, too, have outside interests. My
son has found enjoyment in some of
my outdoor enthusiasms and my
daughter has given many free hours
of service to the Sister Kenny insti­

tute in Minneapolis as one of her
hobbies. I have always tried to instill
in my children the philosophy that
there should always be an interest in
areas other than those that require
our efforts for a livelihood. All you
have to do is search for them, and
you’ll always be richly rewarded with
pleasure, education and refreshing re­
laxation.”— End.

Gamble-Skogmo Expands
nounced plans for construction of
a new six-story home office building
at the intersection of highways 100
and Wayzata Boulevard in suburban
Minneapolis. The office development
formerly known as Highway 100-12
will be renamed the Gamble Center.
The joint announcement by Carl C.
Raugust, president of Gamfole-Skogmo,
Inc., and Leslie C. Park of Baker Prop­
erties, Inc., outlined the plans for the
multi-million dollar high rise building
of steel and reinforced concrete con­
The Gamble center will be the home
office headquarters for the Interna­
tional Gamble enterprises consisting
of approximately 4,000 stores and over
20,000 employees located in 40 states
and all the provinces of Canada. The
new building will replace the firm’s
present headquarters located at 8th
Street and Hennepin Avenue in down­
town Minneapolis.


Georgia Kills Branching








515— 261-4757

, 8156
244 ( 8157
' 8158

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

D . B



C o




The Georgia State Senate voted 2621 last month not to reconsider a bill
to allow countywide branch banking,
dooming the proposal for at least
another year.
The branching proposal had re­
ceived strong support from the state’s
two largest banks, Citizens and South­
ern National Bank and First National
Bank, both of Atlanta.
The holding company measure is of
more importance to First National
than to C&S or Trust Co. of Georgia,
the state’s third largest bank. The
latter two banks had extensive hold­
ing company operations prior to the
1960 “freeze” on new companies and
expansion of existing chains.
Observers said that redistricting of
the legislature, which must be ac­
complished this year, may give fresh
impetus to the branching and holding
company questions in 1968. Although
the Georgia Legislature technically
has only biennial sessions, it has been
operating for a number of years on
a split-session basis, thus providing
a legislative meeting each year.


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Northwestern Banker, March, 1967


Finance Firms Finn M erger
HE boards of directors of Inter­
state Finance Corporation of
Dubuque, Iowa, and State Loan and
Finance Corporation of Wilmington,
Del., have jointly announced agree­
ment on a proposal of merger between
the companies. By the terms of the
merger agreement, State Loan and
Finance Corporation would be the
surviving corporation.
At the end of 1966, State Loan and
Finance Corporation operated 665
offices with aggregate receivables of
$360-million, while Interstate Finance
operated 55 offices with approximately
$40-million of receivables.
Under the terms of the merger, a
tax free exchange of stock will be
made to Interstate shareholders who
hold Common and B-common stock on
the basis of 1.6175 shares of A-common
stock of State Loan and Finance for
each share of Interstate Finance Com­
mon or B-common. The Preferred
holders will receive four shares of
$25.00 par 6 per cent Preferred Stock
of State Loan and Finance for each
$100 per share of Interstate 51£ per
cent stock.
David B. Cassat and George L.
Cassat, present directors of Interstate
Finance Corporation, will be mem­
bers of the board of directors of the
surviving corporation following the
statutory merger. Complete proxy
statements and a copy of the agree­
ment of merger will be mailed to all
shareholders and be available to any
interested persons.
The merger will enable State Loan
and Finance to expand its operations

OWEN P. McDERMOTT, Secy.-Treas.

into the upper mid-western States of
Iowa, Minn., Wis. and 111., in which
it has to date had limited operations.
The Interstate organization would
join that of State Loan and Finance
which, through subsidiaries, operates
in thirty-eight States and the Province
of Ontario, Canada.
It is anticipated the merger agree­
ment will be submitted to a vote of
the shareholders of the respective
companies on April 19, 1967.

Farm Action
Nearly one-sixth of the commercial
farmers in North Dakota have agreed
not to buy new farm machinery and
automative equipment until agricul­
tural economic conditions improve.
They are taking part in a “ Stop
Buying” campaign originated by the
North Dakota Farmers Union to pro­
test high prices, high interest rates
and what the NDFU calls “others ad­
verse conditions affecting family farm­

(Continued from page 35)
or whether they will reach out for
longer maturities to realize a higher
income rate.”
Iowa, $22 million deposits: “Because
the Government Bond market will be
affected by the supply of new issues,
which will be deliberately curtailed
in order to relax the money squeeze,
banks will have to develop their own
refunding program. Although munic­
ipal prices have recovered substantial­
ly since August, municipals still de­


S F aw, McDermott &Q .
Underwriters and Distributors
County, City, School and Revenue Bonds
916 Liberty Bldg.


Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

Phone CH 3-6119

5 0 3 0 9

serve consideration, if liquidity affords, particularly with the proposed
surtax increase to become effective
July 1, or later this year.”
Iowa, $10.4 million deposits: “Changing in the rate on municipal bonds
during the last 30 days. The local
hospital sold bonds six months ago at
a rate of over 4.15 per cent. This past
week the school sold bonds for a
new junior college at a rate of 3.33 per
Iowa, $6 million deposits: “Big bank­
ers forcing small banks to act like
children in bidding for and buying
business, just to get footings regard­
less of sound banks. Whey it is per­
mitted by the departments is a mystery to me but I don’t pretend to
know anything—except I happened
to be in the business when they were
jumping out of 10-story windows.”
Iowa, $5 million deposits: “Reduc­
tion of yields below 5 per cent, with
many banks paying 5 per cent on time
Iowa, $7 million deposits: “The in­
creased rates in Government Bonds
has pushed the Municipal Bond mar­
ket into an area where it is very at­
tractive to banks that can afford to
go into long maturities. However, be­
ing in a small bank in an agricultural
area we are reluctant to go over­
board into the municipal bond invest­
ments.” —End.

(Continued from page 33)
Evolution of Market

Looking briefly at the early back­
ground of secondary market opera­
tions, as the dollar trading market
and general trading markets expanded
rapidly, it became apparent that old
methods of soliciting bids, making
secondary offerings, finding bonds and
generally bringing buyer and seller
together were becoming obsolete. The
old practice of the seller requesting
bids from a relatively narrow group
of potential bidders frequently pro­
duced relatively relaxed bids and, con­
sequently, not always the best price.
Even putting the items out for the
bid through the rudimentary broker
organizations existing at the time did
not produce a broad market, because
with limited personnel (one or two
men and maybe a girl) and only the
telephone, the best that could be ac­
complished was a few calls in the
area in which the issuing municipal­
ity was located, and to the larger mu­
nicipal trading firms in New York
City. Brokers often literally carried
their office in their hats. A black
leather notebook was carried in which
they recorded offerings and inquiries








In a Park Avenue conference room. A rare pause for a man on the road some 26,000 miles yearly.

Most of the top 100 corporations use him. Smaller companies give him $1 billion in business.

They say this is the age of committees.
If so, one of the world’s largest banks, Chemical New York,
is bucking the age in its approach to serving corporate cus­
tomers. Our approach is the “committee of one”—and it may
be one of the reasons our resources have increased two billion
dollars in the last four years alone.
Each of our bankers serving business throughout the coun­
try is an across-the-board banking expert, rather than a lim­
ited specialist. The result: Your time with him can be spent
getting things done.
Your Chemical banker serves not just one industry, but all
Federal Reserve Bank of St. Louis

industry in your area. (50% of our business accounts are smallto medium-size companies outside the New York area.) Fa­
miliar with businesses widely diversified in size, products, and
problems, he can cope quickly and thoroughly with yours.
If you could benefit from our kind of thorough banking
knowledge and personal attention, why not meet with our
“committee of one.” All you need do is to contact our man
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Company, New York, N.Y. 10015.
The bank that works hardest for you.


Northwestern Banker, March, 1967

as they went afoot from one dealer to
As communication facilities devel­
oped and the size of the market grew,
it became apparent that a need was
also developing for a larger, more in­
tegrated, type of brokerage operation.
Wire services to dealers from a broker
were established first in New York
City, then later to outlying cities, un­
til now such service is available in at
least 13 m a jo r financial ce n te rs
throughout the country on a subscrip­
tion basis.
Com munications Network

Actually, a massive communications
network now links municipal dealers
and bonds are traded within an ex­
ceedingly well organized system at
surprisingly narrow spreads between
the “bid” and “asked” quotations. In
addition, firms with New York offices
could get the messages from the
broker on their New York wire, tran­
scribe it on tape and send it out on
their TWX to their various offices lo­
cated throughout the country.
Such messages asked for bids on
items, made offerings on others, and,
in general, acted as a clearing house
for information. As the idea caught
on, more and more bid wanted items
were shown through the broker. The
reasons for this were one, or possibly
both, of the following:
1. By getting the broadest possible

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

coverage, the best bid was as­
2. Secrecy was maintained as to the
seller’s identity and also the pur­
Point 2 is an important considera­
tion under certain circumstances.
As primary market profit margins
began to shrink, and, as the advan­
tages in being able to bid selectively
as to maturity and quality on a wide
range of securities became apparent,
more and more firms looked to the
secondary market as a method of en­
hancing profits. They were also able
to get salable merchandise of the type
and maturity range best suited to
their individual operation. The broad­
ened coverage and keener competi­
tion, of course, drove the profit mar­
gins down.
The average daily supply of bonds
traded through the brokers (which
are concentrated in New York City)
adds up to approximately 200 items
per day and a dollar amount of $5,000,000 each day.
Daily Publishing

In addition to the development of
trading outlets through the brokers,
another important contribution to a
broader market has been the Blue
List. This is a trade publication which
is issued daily and which lists by
state, amount, issue, coupon, maturity,
yield and dealer, the securities which

are available in the market. Primary
syndicates also are listed in this pub­
lication, but it is also an extremely
important media for trading items as
it gives the dealer-owner of securities
a nationwide market in which to ad­
vertise his wares.
The publication has developed from
its modest beginnings as a four-page
folio edition offering a total of $15,754,000 bonds to an almost 200-page
publication showing well over $600,000,000 worth of securities for sale.
Although its sheets do not include all
of the dealers’ inventories throughout
the country, it is a good general indi­
cator of the level of float in the deal­
ers’ hands. The Daily Bond Buyer,
also published every business day,
serves a similar purpose in presenting
detailed information regarding pro­
posed bond issues and the results of
sales of new issues of municipal
bonds. The importance of the Blue
List and Daily Bond Buyer to the
trading operation is illustrated by the
fact that constant efforts are being
made to improve time of delivery of
these publications to the trading de­
partments of various firms. The rea­
son for this is that an astute trader
quite often can find bargains which
are being advertised.



Sum mary

In summation, the municipal trad­
ing market has expanded tremendous­
ly, both in number of items and in
volume of items traded over the past
few years. It has also become a more
important facet of over-all profit in
the a v era ge municipal operation.
With the continuing growth of the
primary market, it is expected, and
anticipated, that the trading market
will also grow equally as fast. It is
also expected that more and more
competition will evolve as more and
more bonds are brought into the bro­
ker’s communication sy stem and
given wider circulation.
The evolution of the broker has
caused a revolution in the trading op­
eration that is expected to continue
for some time. The secondary mar­
ket for municipals must grow in vol­
ume and geographic scope as the
country develops its internal frontiers
and rebuilds its cities. The dealer
who attempts to underwrite new is­
sues without operating a competent
secondary market is not giving his
customers the service they deserve.
The dealer bank who expects to be
worthy of the title dealer would do
well to develop his secondary position
in the industry to the extent that his
reputation as a distributor is not con­
fused with that of an investor with
dealer privileges.— End.



PIONEER® u se rs—

yo u r preferred custom ers!
The farmer who plants Pioneer seeds is gen­
erally a good risk because he’s part of a strong
team. H e’s backed by one of the biggest and
most dependable research-minded hybrid seed
companies in the business.
When he buys Pioneer seed, he’s working with
technically trained sales and service teams, thor­
oughly grounded in the science of making crops
grow and producing big bred-in yields inherent
in Pioneer varieties.
A call anytime brings him a Johnny-on-thespot Pioneer salesman, one of hundreds of expe­
rienced, local salesm en strategically located
throughout corn growing areas. Maturities and
varieties? Pioneer salesmen are thoroughly fa­
miliar with the ones best adapted to their areas.
Questions? Whether it’s high-yielding hybrid
corns, sorghums for silage or grain, alfalfas, or
sorghum-sudangrass hybrids, if the local sales­
man doesn’t have the answer, he has immediate
access to Pioneer’s Technical Service staff of
college-trained agronomists who do.
Order P IO N E E R , and your customer gets the
very best seed in the business— carefully bred
and tested for yieldability plus all the other char­
a cte ristics th a t m ake great h y b rid s. P lan t
Pioneer, and he’s confident of the highest quality
Federal Reserve Bank of St. Louis

— strong, viable seed literally raring to get-upand-grow when it’s planted next spring.
A t planting time, Pioneer can furnish planter
plates exactly matched to size of seed for smooth
and accurate planting. When planting is delayed,
Pioneer customers can trade for earlier hybrids,
readily available from the company’s network
of plants and warehouses.
Pioneer is proud to offer service and seed that
increases farmers’ odds for profitable crops, cuts
the risk of farming, and makes them your pi'eferred customers.

P ioneer H i-B re d C orn C om pany, Des M o in e s, Io w a
G arst and Th om as H yb rid C orn C om pany, C oon Rapids, Io w a

PIONEER is a brand name;
numbers identify varieties.
Northwestern Banker, March, 1967



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Federal Reserve Bank of St. Louis



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Serving you around the w o rld... around the dock

St. Paul Fire and Marine Insurance Company
St. Paul Mercury Insurance Company
Western Life Insurance Company
St. Paul, Minnesota 55102

Guardsman Life Insurance

Allied Mutual Insurance
The Allied Mutual Insurance Com­
pany’s strong financial condition as of
the close of business on December 31,
1966, is reflected through substantial
increases in assets, surplus and premi­
ums written, ac­
cording to John
E. Evans, presi­
Pointing up the
financial stability
of the company is
the rise in policyholder’s su rp lu s
to $17,417,255.46,
an in c re a se of
per cent, after
absorbing a loss
of $947,890.34 which resulted from a
decline in the stock market. Assets
climbed to $47,105,261.11, a gain of
$4,421,126.75 over 1965 figures.
Confidence is displayed in Allied
Mutual by its policyholders and agents
through the healthy 23.7 per cent in­
crease of $6,569,847.76 in direct premi­
ums written to a record high of $34,348,951.50.
Losses of $15,598,687.15 were paid
during 1966 as compared with $12,733,883.27 in 1965. The ratio of losses
incurred to premiums written in­
creased only .4 per cent in a period
which will long be remembered as the
year devastating tornadoes struck Belmond, Iowa, and Topeka, Kan.

Bankers Life Company
Nineteen sixty-six proved to be the
biggest year in the history of Bank­
ers Life Company, Des Moines, and
the second consecutive year in which
new life insurance protection provided
exceeded $1 bil­
ion. E. F. Bucknell, president, re­
ported increases
in benefits paid
to policyow n ers
and beneficiaries,
new life insur­
ance sales, assets,
investment earn­
ings and insurE. F. B U C K N E L L



f ° rCe'

Benefits a n d
dividends paid to living policyowners

a n d beneficiaries d u rin g 19 6 6
amounted to $187,367,038, up more
than $17 million over the previous
year. An additional $88,664,056 was
set aside for future payments, bring­
ing reserves and other funds held for
the protection of outstanding policies
and contracts to $1,550,000,000.
New life insurance sales totaled
more than $1,078,500,000. Ordinary
sales accounted for $588,787,652 of the
total and new Group life insurance
sales amounted to $489,731,961.
Life insurance in force increased by
more than $580 million to a new high
total of $6,491,489,541. Ordinary life
insurance in force at the year end
amounted to $3,330,372,081 and Group
life reached $3,161,117,460.
Assets increased by more than $80
million to a new high total of $1,585,882,307. During 1966 the rate of inter­
est earned on the company’s invested
assets, after investment expenses but
before Federal income tax, was 4.83
per cent.

Central States Health & Life
“Aside from the increase in assets
of 10.2 per cent, the most significant
aspect of Central States’ progress in
1966 was the fact that over 1,400 banks
throughout the middle west are now
participating in the Central States
B ank-C are and
Health-Care p ro­
grams,” r e p o rts
William M. Kizer,
president, Central
States Health &
Life Company of
Omaha. Total in­
come for the year
rea ch ed $9,081,882 and the firm
sh ow ed a net
w. M . K I Z E R
gain from opera­
tions before federal taxes of $553,343.
Surplus rose to $4,470,172.
In spite of above average lapses as
a result of Medicare, the company in­
creased the number of policies in force
20 per cent. Mr. Kizer reported the
formation of a new department of
mass marketing in order to better
meet the growing demand for supple­
mental insurance coverages designed
especially for bank depositors.

Nineteen sixty-six was a year of
marked growth for the Guardsman,
according to Rudy R. Hagelman, pres­
ident. During the year, 18 new gen­
eral agencies were developed.
Though the Guardsman’s sales his­
tory dates back
less than f o u r
y e a r s , the 850man agency force
g en er at e d sales
volume in excess
of $32 m i l l i o n
paid for and in­
surance in force
rose to in excess
of $85 million. Or­
life premi­
R. R. H A G E L M A N
um income rose
23 per cent over 1965.
Operations in the credit life field
through banks was expanded during
the year through special products like
the single premium mortgage plan,
designed and geared for the financial
institution. Other products include a
full line of service in both the ordi­
nary field of non-participating and
participating, major medical, loss of
time, accident insurance and basic
hospitalization. Group, credit and
dental insurance round out the com­
plete portfolio.
The coming year will see the
Guardsman pass the $100 million
mark, a major milestone in the growth
of a small life insurance company.

Financial General Group
The 1966 results of the fire and cas­
ualty companies of the Financial Gen­
eral Insurance Group were vastly im­
proved over the previous year.
Each of three companies—HawkeyeSecurity Insurance Company, United
S e c u r i t y Insur­
ance Co mpany ,
and Northeastern
Insurance C o m ­
pany—reported a
statutory u n d er ­
writing profit.
J. S. Tressler,
p resid en t of
Hawkeye - Secu­
rity and United
Security, reported
that the loss ra­
tios of the various personal lines
classes of business were slightly im­
proved or were no worse than the
previous year. He attributed the re­
sults to two major reasons. They are
rate increases in recent years coupled
with effective expense control meas­
This made it possible to secure a
few more dollars on each risk written,
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

thereby allowing additional margins
to pay the increasing loss costs. Med­
ical, hospital, repair and other related
expenses involved in the adjustment
of claims have continued to rise and
without the rate expense adjustments
the underwriting results would have
been similar to previous years when
the Group reported only a small profit
or break even results.
Investment income was likewise im­
proved for all three companies. This,
coupled with the improved underwrit­
ing results, produced a net income be­
fore taxes and without provision for
adjusting the earnings for equity in
the unearned premium reserve of
nearly $3 million for the three com­
The premium writings of the Group
increased 7 per cent during the year
to a new high of $37,279,000. Assets
and policyholders surplus totaled $56,468,954 and $17,787,667 respectively.

Life Investors
Insurance Company
Life Investors Insurance Company
of America has now completed its
seventh year of successful operation
and Sam Orebaugh, president, reports
a continuation of its spiraling growth.
It had a net increase of $85,000,000
of new business in 1966, after deduc-

tions for deaths, terminations and
brought its busi­
ness in force to
$426,000,000. Pre­
mium income in­
creased from $6,570,315 to $8,007,064. Of this total
ordinary life ac­
counted for $5,902,916.

^ n e

T h is progressive com­
pany with


conservative manage­
ment is proud of its 300
P r o g r a m m e a n d o t h e r h elp s in
d e v e l o p i n g t h e b a n k 's f a r m
a n d r a n c h business. F o r
FREE b ro c h u re w rite :

bank agents in Iowa.
W. W. Warner

M. J. Corbin
Vice President

P.O. Box F


jr.iHifl'Wiui;íH»4!i-Ti^i.i l.nut i■)i■u rrnm
Northwestern Banker, March, 7967
Federal Reserve Bank of St. Louis

t ^l e


pany’s programs
which has had popular acceptance is
its Variable Investment Plan (V.I.P.).
This plan is designed to provide re­
tirement income and combines the
systematic savings of “guaranteed dol­
lars” as represented by a retirement
type policy, with “speculative dollars”
as represented by mutual fund shares.
By balancing systematic savings with
a speculative investment the program
tends to avert the ravages of either
prolonged inflation or depression in
the estate building process.
Life Investors also specializes in
consumer credit insurance and num­
bers 89 banks among its clients. Two
years ago it organized Casualty Insur­
ance Company of America, a wholly
owned subsidiary, to provide the fire
and casualty lines which supplement
consumer credit insurance. The sub-

2100 Grand Ave.
Des Moines, Iowa

sidiary company at present limits its
business to this purpose.
Approximately 90 per cent of the
company’s new business originated in
Iowa, although it is now licensed in
12 states.

Merchants Mutual Bunding
Company assets, surplus and busi­
ness written all reached new highs
during 1966 for Merchants Mutual
Bonding Company of Des Moines, ac­
cording to W. W. Warner, president.
The company is now the largest
writer of surety bonds in Iowa. Three
fieldman work closely with agents
across the state.
During 1966 additional emphasis
was placed in surrounding states and
during the coming year increased
writings are expected in South Da­
kota, Oklahoma and Texas. Business
in these states will be confined pri­
marily to the writing of license and
public official business.

[National Equity Life Company
Leonard T. Heinen, president, Na­
tional Equity Life, Des Moines, re­
ports that during the company’s first
full year of operation, which ended
. on December 31,
■I "■ ■ ■■'.' I HI 1966, the premium
i n c o m e total ed
$314,359, while tota l i n c o m e
reached $427,861,
up from the pre­
vious year’s total
of $86,191. After
deductions for all
expenses of $382,177, Mr. Heinen
L. T. H E I N E N
r e po r t e d unaud­
ited statutory profits of $45,684 for the
During the year, the company’s as­
sets increased to $2,635,832, up $451,613 from the year earlier and as of
December 31, 1966, the company’s in­
surance in force exceeded $5% mil­
National Equity Life was chartered
on May 27, 1965, and commenced writ­
ing insurance in July, 1965. It is a
wholly owned subsidiary of National
Motor Inn Corporation, 928 Sixth Ave­
nue, Des Moines.

North Central Life
P r e l i m i n a r y figures show North
Central Life Insurance Company’s in­
surance in force at year-end 1966
climbed to $345 million, an increase
of nearly 30 per cent compared with
$266 million at the end of 1965.
J. Robert Stassen, president, stated,
“This $79 million growth represents

increased insurance sales in the areas
of Group Mortgage insurance, Credi­
tor Life insurance and Ordinary Life.”
During the last five years, North
Central Life has nearly tripled its in­
surance in force, growing from $133
million at year-end 1961, to $345 mil­
lion presently, a growth of $212 mil­
Total premium income for 1966 was
$8,582,000, an increase of about $300,000 over last year. Total income
reached $9 million, continuing a pat­
tern of steady growth for North Cen­
tral Life.

Total income increased 19 per cent,
up to $20,182,494, compared to $16,955,819 in 1965. Total premiums increased
20 per cent to $18,117,465; life premi­
ums were $11,556,665, compared to
$9,637,539 and health premiums were
$6,560,800, compared to $5,443,733 a
year ago. Income from investments
increased $231,733 or 13 per cent over
1965 for a total of $2,011,406.

National Fidelity Life

Mortgage loans amounted to $20,380,360, up from last year’s total of
$16,652,909, an increase of 22 per cent.
Bond investments accounted for $15,437,574 compared to $16,412,592 a year
Mr. Rosenburg stated that plans for
1967 include a reorganization and
streamlining of home office operations
designed to reduce expenses and to
provide a better service to policyhold­
ers and the field force, an extension of
the company operating territory geo­
graphically, a substantial increase in
the number of sales outlets from coast
to coast, and the introduction of some
new life and health products.

Operating results for 1966 have been
announced by National Fidelity Life
Insurance Company of Kansas City,
Mo. The company, now in its 51st
year, increased insurance in force to
$869,490,135 as of December 31, 1966,
according to Robert F. Rosenburg,
president. The gain of $136,334,259
was an increase of 18 per cent over
a year ago.
Paid ordinary insurance production
amounted to $64,911,845 compared to
$64,107,800 in 1965. Group life pro­
duction, including credit, increased to
$289,457,898, compared to $238,179,381
last year.

Total assets gained 10 per cent to
$44,637,063, an increase of $4,397,044
over December 31, 1965. The compa­
ny now has $1.19 or assets for each
dollar of liabilities.

Square Deal
Insurance Company
Square Deal Insurance Company
(Mutual) achieved new records in the
last fiscal year, Merle D. Morgan, pres­
ident, reported to
the recent compa­
ny meeting at the
h o m e office in
Des Moines.
Assets increased
to $4,671,557; pol­
i c y h o l d e r s ’ sur­
plus reached $4,448,863; premiums
increased 7.7 per
m . d. Morgan
cent, and b u si­
ness in force rose
11.5 per cent over 1965.
Mr. Morgan was re-elected president
and general manager. Other officers
re-elected were: Donald B. Booth,
Thayer, Iowa, vice president; A. A.
Kane, secretary; Emmett E. Johns,
treasurer, and M. E. Tyler, assistant
secretary, all of Des Moines.
Square Deal writes crop hail insur­
ance exclusively and has over 1,500
agents in Iowa, Missouri and Illinois.

Employers Mutual Companies

sixty-six was

a record

December 31, 1966



Bonds: (Amortized) ......................
Governm ent..................... $ 1,311,201.22
State, County and
Municipal _______
All Other .......................... 2,543,484.40
Stocks: (Market— N.A.I.C.) ..... ...................
Preferred ........................$
Common ............................
Mortgage Loans— On Real Estate ................
Real Estate— Including Home Office Building
Cash and Bank Deposits ..................................
Agents Balances and Reinsurance Receivable 2,340,768.01
Interest Due and Accrued ................................
All Other .....

Reserves fo r :
Losses and Loss Expense ........................$ 2,874,574.69
Contingent Commissions .................... -..... 1,040,654.21

TOTAL .......................................................$20,928,704.45

TOTAL .............. ........................................$20,928,704.45

MAX D. RUTLEDGE, President

Taxes ......................................................


Unearned Premiums .... ......................—
Funds Held Under Reinsurance Treaties
Reinsurance Loss Balances in
Course of Payment ....
All Other .....................................................


TOTAL LIA B IL IT IE S ............... ..........


Surplus as Regards Policyholders



..................... $11,052,213.88


Home Office 2323 Grand Avenue, Des Moines, Iowa
Nort hwest ern Banker, March, 1967
Federal Reserve Bank of St. Louis

year for the Employers Mutual Com­
panies, Des Moines. Net premiums in­
creased from $49,112,000 to $55,267,000
with assets rising from $69,082,000 to
$74,369,000, and surplus i n c r e a s i n g
f r o m $19,100,000
to $19,445,000 de­
spite a drop of
$1,456,000 in stock
p o r t f o l i o valua­
tion, according to
R obb K elley,
The largest line
of premium vol­
ume increase was
com ­
R. K E L L E Y
p e n s at i on wi th
11.2 per cent. Second was special
multi peril 23.5 per cent, and third
was ocean marine. This premium pro-

duction reflected the company’s em­
phasis on commercial accounts.
EMCASCO Insurance Company, a
wholly-owned subsidiary organized
for company-billed low-premium cost
homeowners and automobile insur­
ance showed an increase of 80 per
cent in premium writings. This is a
trend reflecting a more receptive atti­
tude among agents for this style of
marketing as well as increasing con­
sumer resistance to higher insurance
rates. All policies in this company
are reinsured 100 per cent in the par­
ent company.
Employers Modern Life completed
its third calendar year with $32,984,000 in force. During the year partici­
pating policies were added to the port­
folio. The all-line one-stop selling con­
cept is steadily progressing.

Western Mutual
Insurance Company
Western Mutual agents produced
over 10 per cent gain in premium
writing for 1966 for a total amount of
$12,729,000, J. D. Kent, Jr., president,
reported at the annual policyholders’
meeting of the company at the home
office, 616 Tenth Street.
Mr. Kent said that the company sur­
plus has now reached $5,595,000 and
in 1966 showed an underwriting gain

g o ...
in mid- Am er ica . . .

20 stories of air-conditioned comfort
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radio and TV.
Outstanding meeting rooms. Con­
vention, conference and luncheon
space for the businessman or social
group .

H O T E L or M O T E L
Hub of civic and social activities, all
Schimmel Hotels offer telephone, TV,
radio and air conditioning in all rooms


Family Rates
Singles from $6.50
Doubles from $10.75
See your travel agent or call
(816) GRand 1-5020

85th & Dodge / Omaha, Nebraska
(4G2) 393-4000

Robert L. Phillips, Pres.
W. S. Morris, Mgr. Dir.

"first in food"
H o te l




-• ■Vw.yvv..:-v

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


12th and Baltimore
Kansas City, Mo.

of $148,785, the first underwriting gain
in the last four years.
An important step of progress of
the company was
the pu rc has e of
Western Business
of the General
A g e n c y of the
Maynard V. Mills
Company of Lincoin. Neb., who
represented WestII&
Jll f l l l ern Mutual in Nef§ l% ,j| f||||l| braska for many
j. d . k e n t , j r .
years.This pur­
chase was com­
pleted June 1, 1966, with Western
completed June 1, 1966, with Western
Mutual taking over the state of Ne­
braska and establishing a Nebraska
office at 4900 O Street in Lincoln and
a personnel of 31 persons. James
Duff and John McPherren moved
from the home office in Des Moines
with James Duff as state agent in
charge of Nebraska and John Mc­
Pherren as office manager.
William Timmons, recently resigned
Insurance Commissioner of Iowa, was
elected to a three-year term as direc­
tor at the annual meeting.

St. Paul F.&M.
The St. Paul Fire and Marine In­
surance Company’s combined prop­
erty-liability and life insurance net
operating income for 1966 was $21,296,000, or $4.11 a share, up 18 per
cent over the $18,004,000, or $3.47 a
share, earned in
1965, according to
R o n a l d
Hubbs, president.
The St. Paul
Fire and Marine
is the parent com­
pany of The St.
P a u l Insurance
Companies group
w h i c h i nc lu de s
two property-lia­
bility companies
and Western Life Insurance Com­
Improved automobile and residen­
tial insurance experience and a $4
million reduction in catastrophe losses
were the principal factors in the in­
creased earnings of The St. Paul’s
property-liability insurance c o m pa ­
Nineteen sixty-six net income
was $19,581,000, or $3.78 a share. Com­
parable 1965 income was $16,750,000
or $3.23 a share.
The $4,650,000 property-liability 1966
underwriting profit, 1.8 per cent of
premium sales, was the best registered
since 1955. Underwriting profit is the
difference b e t w e e n i n c o m e from

earned premiums and outgo in claims
costs and operating expenses.
The property-liability companies in­
vestment income increased 11 per cent
to $17.8 million, or $3.44 a share.
St. Paul Fire and Marine propertyliability assets at year end were up
$26.7 million to $585.1 million, and
capital and surplus was off $4 million
to $269 million. Capital and surplus
declined despite increased earnings
because portfolio stocks depreciated
5.9 per cent, or a net of $13.5 million,
in market value during the year.

Fairfield Starts Building

Union Insurance Company

During the year 1966, the total pre­
mium volume for the Union Insur­
ance Company of Lincoln, Neb., was
a record high of $6,283,000. Assets to­
taled $8,696,000, with a Policyholders’
Surplus of $4,023,000. For the past
several years the
Union Insurance
Company has re­
c e i v ed an A +
(Excellent) r a t ­
ing (highest rat­
ing given) by Alf r e d B e s t and
Company, w h o
Western— Southern Life
are the r e c o g ­
William C. Safford, president of
D. H. P E T T E T T
ni zed insurance
Western-Southern Li f e I ns u r a nc e
Company, Cincinnati, Ohio, has an­ rating authority. This rating indi­
nounced that in 1966 the company’s cates the ability of the company to
assets rose to more than $1,510,000,000. withstand catastrophic losses such as
In presenting the the tornadoes which occurred in Min­
firm’s 79th annual neapolis in 1965 and Belmond, Iowa,
financial s t a t e ­ in 1966. The challenges of the future
ment, Mr. Safford are the basis on which progress is
said insurance in anticipated.
According to D. H. Pettett, presi­
force reached $7,613,000,000 at year dent, the company now operates in
seven midwestern states and is repre­
Records for the sented by over 1,100 agents, who pro­
duce automobile, property, and liabil­
p a s t 10 y e a r s
show that both ity coverages. The company has al­
the assets and in­ ways enjoyed excellent representation
surance in force through many of the banks in the
of Western-Southern have more than states of Nebraska and Iowa. The
doubled. Latest statistics show the association with the banking industry
company ranks 18th among the na­ has always been a source of pride to
tion’s 1,700 legal reserve life insur­ the company.
ance companies, in terms of assets.
Surplus and security reserves rose
to $135 million in 1966. Policy re­
serves were in excess of $1,300,000,000.
New highs in credit insurance in
force and premium income from cred­
it insurance were among the high­
lights of the company’s report. Dur­
ing the year, the company’s credit in­
surance department continued to im­
prove and expand its services to banks
and their borrowing customers.

A general contract for construction
of the new building for the First Na­
tional Bank, Fairfield, has been
awarded to Conner Brothers Con­
struction Company. Irvin Huneke of
Fairfield is the architect.
The new two-story building will be
a colonial style. Construction is to
start soon.


(Continued from page 40)
of payments situation is worsening.
The recovery of the capital markets
can perhaps be divided into three
phases: the recuperation period, in
September and October, when quota­
tions snapped back from near-disaster
levels under realization that there
would be no 1929-type panic; a solid
upward movement, extending through
December, based on a very real abate­
ment in demand pressures and relaxa­
tio n of credit policy and fundamen­
tals; and a market of expectations over
the past month, since the President’s
State of the Union message.
To the extent that the market has
been nourished this year with hopes
and expectations, these must be real­
ized through actual solid developments
to continue to propel prices ahead.
This would require further aggressive
Federal Reserve moves to ease credit
and a sufficient slowdown in the econ­
omy to bring about a major rebuilding
of bank liquidity and big increase in
bank investment portfolios.
Our judgment is that six months
Rejoins Kansas City Fed
Dr. D. R. Hawthorne, dean of the from now expectations will have
school of business administration at proved to outrun reality, but that on
Miami University, Oxford, Ohio, has the other hand there is no element in
been appointed vice president and sen­ the picture that will carry yields back
ior economist of the Federal Reserve to their crisis levels of 1966. While
Bank of Kansas City, effective August some gradual firming of yields seems
1, according to George H. Clay, Kan­ likely as the year wears on, over the
sas City Fed president. During the near-term a period of consolidation
years 1950-63, Dr. Hawthorne was on and rough stability may be at hand for
the economic research staff of the the markets in fixed-income securities.
— End.
Kansas City Reserve Bank.


O M A H A 8, N E B R A S K A


N IT E d S t ,«

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

Federal Reserve Bank of St. Louis


This can be mighty
exciting reading,
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They have one of the biggest, busiest bond departments in America,
They’re a major primary dealer
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T hey also supervise one of the

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You’ve got an inside track, when
you know the right people. And you
do. The people at Continental.

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Continental Bank International, New York
Branches: London • Osaka • Tokyo
Representative Offices: Brussels • Madrid • Mexico City • Milan • Zurich
M em ber Federal Deposit Insurance Corporation

©C.I.N.B. 1967

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

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• John Wooldridge—Call 221-9645

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Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis



M in n esota




St. Paul

Albert Lea
Robert M. O’Sell has been elected
assistant cashier in the installment
loan department of the Security State
Bank, according to Herbert A. Lund,
executive vice president.

Richard L. Kelly has been promoted
to assistant vice president at the First
National Bank, according to a report
from R. F. Lichty, president. With
the bank since 1949, Mr. Kelly is cur­
rently in the installment loan depart­

Beaver Creek
An open house will be held at the
Beaver Creek State Bank in June to
observe the completion of a half-cen­
tury of service. Emer J. Hanson has
been president of the bank since 1951.
Arnold Thone has been elected a
vice president and director.

The First National Bank last month
observed its 50th anniversary with a
“business-birthday anniversary open
house.” A. J. Kane is president of the

Joe McGlashen, 80, retired president
of the State Bank of Chandler, died
last month. He was a native of
Grundy County, Iowa.

East Grand Forks
R. F. Wiley, president of the Citi­
zens State Bank, reports that Grace
Larson has been promoted to assist­
ant cashier.

D. W. Judkins, president of the
First Southdale National Bank, re­
ports that the bank is currently en­
gaged in an expansion and remodeling
program. Completion is scheduled for
this spring.

Kenneth Oelfke has been elected a
director of the State Bank of Ham­

burg, according to Rex Heston, execu­
tive vice president. Mr. Oelfke was
also elected cashier of the bank.

Thomas W. Maki was recently pro­
moted to cashier of the Security State
Bank. He has been with the bank
since 1959.


According to a recent announcement
by Thomas H. Kelly, II, vice presi­
dent of the Security Bank and Trust
Co mpa ny , Ken­
neth E. Wilcox
has b e e n pro­
moted to vice
pr es id en t. Mr.
Wilcox joined the
bank in 1963 as
an assistant cash­
ier in the com­
mercial l endi ng
Also announced
K. E. W I L C O X
was the election
to the board of directors of R. W.
Kaplan, president of the Owatonna
Tool Company. He joined Owatonna
in 1947 and worked his way to his
present position from a production de­
partment position.

Sled Wing

Work on the new building for the
Farmers State Bank is nearing com­
pletion and the move into the new
building is expected to take place in
April or May.
James Mair is a new director of the

William Solberg, president of the
First National Bank, reports that the
new two-story bank building is very
nearly completed. Plans are being
made to move into the new structure
some time in April.

Lake Lillian


New fixtures and counters were re­
cently installed at the First State
Bank of Lake Lillian. A new lobby
arrangement gives both employees
and customers additional room.

An expansion and remodeling pro­
gram was completed last month at the
First National Bank. S. C. Gustafson,
vice president and cashier, reports
that a grand opening is planned for
sometime in March.

Elvin Humble, president of the
First National Bank, was honored last
month by the bank staff and the com­
munity. The occasion was Mr. Hum­
ble’s 50th anniversary in the Rushford
bank. He started with the bank when
he was 20 years old, and was named
managing officer in 1930.

L o b b i/ M is p ittijs

E. Persons, president of the
Western State Bank, has announced
that the bank and the Otto Bremer
Foundation of St. Paul have jointly
set up a scholarship grant of $750 per
year for a period of five years.
Three hundred seventy-five dollars
will be awarded to a graduating sen­
ior from Central Catholic High School
and from Marshall Public High School
who plan to attend the new South
West State College which will open
its doors this fall.

Lyle McCormick, president of the
Northwestern State Bank, has an­
nounced the election of John Albrecht
and Mrs. Pearl Stempson to the posts
of assistant cashiers.

has initiated a series of lobby displays de­
signed to salute key business and organi­
zations in the bank’s trading area. Shown
here is the first of the displays—this one
having the Duluth Air Base as the subject.
Chester C. Lind, exec. v.p. of the bank, is
shown with an airman and his wife with
the display.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


N HIS summary to stockholders,
He was previously sales manager of
President Gordon Murray noted
Minnesota Paints
in Minneapolis.
the new services developed by the
First National Bank of Minneapolis
Prior to that he
was with Archer
during the past year.
Daniels Midland
The bank introduced two new credit
Company in Minplans in 1966. One
n e a p o 1i s and
assists customers
Rand McNally
in their r e p a y ­
and Company in
ment of air travel
costs, while the
Also announced
other assists them
by F i rst Bank
in p a y i n g legal
Stock C o r p o r a ­
services fees.
In the area of tion were several officer changes in its
retail b an ki ng data processing affiliate, First Compu­
service for indi­ ter Corporation.
a new
Charles Arner has been elected
Personal Banking president and chief executive officer
Center was established to serve bank and Ronald I). Sullivan is executive
patrons in almost any banking need. vice president, corporate planning and
A full-time staff of specially trained research. Mr. Arner is also vice pres­
personnel, headed by Assistant Cash­ ident, First National Bank, St. Paul,
ier Kenneth N. Erickson, operates the and Mr. Sullivan formerly was vice
president, First National Bank, Min­
A New Business Services Division neapolis.
was organized to meet the increasing
Promoted by First Computer Corpo­
need for specialized services to busi­ ration were Richard DeLyser and AVilnesses. Its work ties in closely to the lian G. Peters, from assistant vice
computer-related services already of­ presidents to vice presidents, and Lyle
fered by the bank.
M. Sundine, from assistant treasurer
A new community service effort to treasurer.
was also begun during 1966 when the
* * *
bank joined other First Banks in and
.1. .1. Erdman, assistant treasurer of
around Minneapolis in distributing
food stamps to eligible assistance re­ the Minnesota Mining and Manufac­
cipients. This program was entered turing Company, St. Paul, has been
e l ec t ed to the
into in cooperation with Hennepin
board of directors
County Officials.
of the East e r n
* ^ *
H e ig ht s
Gerald L. Knips, president of First
Bank of St. Paul,
Hennepin State Bank, Minneapolis,
a c c o r d i n g to L.
announces the appointment of Harold
Solarz, vice presi­
J. Groenke, to assistant vice president,
dent and cashier.
business development.
Mr. Erdman is
* *
a native of Valley
First Bank Stock Corporation has
City, N. D., and
announced the appointment of Allen
has been with the
j. j . E R D M A N
J. Volkenant to the post of director of
3M C o m p a n y
advertising of its service affiliate, First since 1953. He is a member of the
Twin Cities Society Security Analysts
Service Corporation.


Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

Inc. and the Institute of Internal
Donald E. Garretson has been elect­
ed a director of the First Merchants
State Bank of St. Paul, according to
a report from R. E. Ronnie, vice pres­
^ ^ ^
Richard I. Rose, vice president of
Midland National Bank of Minneapo­
lis, was elected chairman of the Min­
nesota Community Research Council,
Inc. at its recent
annual meeting.


Henry S. Kingman, h o n o r a r y


chairman of the
board of Farmers
& Mechanics Sav­
ings Bank, who
has served as vice
chairman since
1953, retired and
is succeeded by





vice president of the First National
Bank of Minneapolis, and Dr. Harvey
M. Rice, president of Macalaster Col­
lege, who will serve as vice chairmen.
John A. Kvam, vice president of
Northwestern National Bank of Min­
neapolis, was elected treasurer to suc­
ceed Mr. Rose, and Mrs. Marie Drum­
mond was re-elected secretary. Har­
old Adams continues as the full-time
director of MCRC.
The Minnesota Community Re­
search Council, Inc., is a non-profit or­
ganization which acts in an advisory
capacity to United Funds, Community
Chests, Chambers of Commerce, cor­
porations, and firms which request its
* * *
Philip Nason, president of the First
National Bank of St. Paul, has been
elected to the board of trustees of the
Minnesota Mutual Life Insurance





(Turn to page 63, please)


W in n r

Doug Johnson, John Ordos and Jack Weber give proof they have the equipment to help smooth out any banking problem.

Whatever the season

a call to Midland’s
Johnson, Ordos or Weber will find a fast answer to your banking
problems. Transits, investments, credits, operations, collections or
personal services of any kind—these Midland correspondents will
hit the right trail fast. Next time you need modern full service
banking, give Midland a call.

Midland National Bank
o f M inneapolis
Call 3 3 2 0 5 1 1

• 4 01 Second Ave. So. • M in neap olis, M in n . 5 5 4 4 0
M e m b e r Federal Deposit Insu rance Corporation

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Minnesota News

Hosts Correspondents for f ornirai Hart u

LEFT: Hosts in the reception line included Philip H. Nason,
pres., First Natl, of St. Paul; Mrs. Nason, Mrs. Wallace Boss,
and Wallace L. Boss, v.p. and head of Division V (banks and
bankers), First Natl., St. Paul. EIGHT: A symbolic palace key
of ice is presented to Mr. Nason (second from right) by Parker
Seiler (extreme right), builder of the St. Paul Winter Carnival

hundred twenty-five midwest
banks were represented by over
700 bankers and their wives at a funfilled Carnival party held last month
in the new Saint Paul Hilton Hotel.
Arrangements for the party, which was
given by The First National Bank of
Saint Paul, were handled by members
of the bank’s Division V (Department
of Banks and Bankers) who sent in­
vitations to some 700 banks in the
Upper Midwest with which the First
does business.
The party, which kicked oif St.
Paul’s glittering 81st Winter Carni­
val pageant, began with a social hour
in the Minnesota Ballroom, followed
by a sit-down dinner. Guests then
boarded busses and were taken to the
St. Paul Municipal Auditorium where
they saw the coronation of King
Boreas XXXI, contractor William Poppenberger, and his Queen of the
Snows, lovely Angeline Johnson repre­
senting Mortgomery Ward & Com­

Snow Palace in background. Mr. Nason, in turn, presented the
key to Mayor Thomas Byrne (behind Mr. Nason). The Snow
Palace, sponsored by the First Natl. Bank, was turned over to
the Winter Carnival Association for use as a focal point of the
Carnival. At left is 1966 Prime Minister Dan Dolan.

pany. The coronation ceremonies also
included an appearance of the nation­
ally known St. Paul Boy Scouts Drum
and Bugle Corps which since its in­
ception has been sponsored by The
First National Bank of Saint Paul.
In addition to out-of-town bankers
and their wives, all past Carnival
Kings were invited, as were the offi­
cers and directors of the Winter Car­
nival Association. A special invita­
tion was also extended the members
of Wallace Boss’ Royal Party of 1956,
the year in which he was King Boreas
Total attendance at the party, in­
cluding First National officer hosts
and their wives, exceeded 825, accord­
ing to Assistant Vice President Henry
N. Snyder, who was in charge of ar­

The Farmers and Merchants State
Bank last month observed a week


Since 1919

long open house in recognition of the
bank’s 50th anniversary. Clyde Peder­
son is president of the bank.

St. Cloud
Newly elected director of the St.
Cloud National Bank is Robert H.
Wick, president of St. Cloud State

St. Peter
Herbert Filler, cashier of the Nicol­
let County Bank since 1937, retired
last month after more than 48 years
of service with the bank. He will re­
main on the board of directors.
Employees of the bank honored Mr.
Filler at a dinner.

Two new officers and two new board
members have been elected by the
First National Bank, according to
William D. Klapp, president. The new
officers are Joseph Cover and Dennis
Yon, both named assistant cashiers.
New board members are Q. O. Heimerman, vice president of the bank,
and J. E. Slaughter, president of a
local lumber company.

Approve Changes in Capital


We specialize in
tax exempt municipal bonds



Northwestern Banker, March, J967
Federal Reserve Bank of St. Louis

2, M I N N E S O T A

Phone: 333-3475

The following increases in capital
stock have been approved by the
Banking Division of the Minnesota
Department of Commerce: Melrose
State Bank, from $100,000 to $125,000;
State Bank of Chandler, from $30,000
to $60,000; Farmers and Merchants
State Bank of Breckenridge, from
$150,000 to $200,000; and the Citizens
State Bank of Walnut Grove, from
$50,000 to $75,000.

Minnesota News

(Continued from page 60)
The International Banking Depart­
ment of Northwestern National Bank
of Minneapolis is offering for sale to
the public 1967 specimen sets of the
first Israel coins to be struck in Jeru­
salem in more than 1,800 years. The
coins were available on the official day
of issue, February 15
through spe­
cial arrangement with the Israel
Government Coins and Medals Cor­
poration in Jerusalem.
* * *
L. M. Broom, president, brought to
the attention of the N o r t h w e st e r n
B a n k e r , that deposit figures for the
Stock Yards National Bank of South
St. Paul were erroneously reported in
the February issue.
The December 31,1966, deposit figure
of $30,359,000 was correct as reported.
However, the December 31, 1965, fig­
ure should have been $28,073,000.
* * *
As reported earlier in N o r t h w e st e r n
B a n k e r , four men were last month
named vice presidents at the North­
western National Bank of Minneapo­
lis. They are W . Merton Dresser, Mar­
vin L. Melchert, John C. McKee and


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Other promotions in the commer­
cial department included Fred J.
Herkal to assistant vice president;
John B. Munnings and Howard E.
Schulz to assistant controller, and
Donald D. Johnson to assistant cash­
T r us t d e p a r t m e n t promotions
named Bruce W . Blackburn and Larry
D. Buegler to trust officer and assist­
ant secretary. Newly-elected assistTWIN CITY NEWS . . .

(Turn to page 66, please)

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Northwestern Banker, March, Ì967
Federal Reserve Bank of St. Louis


Minnesota News

LEFT—TJ. S. Senator John Sparkman (Dem. Ala.) visits be­
tween sessions with Robert J. Hubbell (left), pres, of the Min­
nesota Bankers Assn, and pres., Eastern Heights State Bank, St.
Paul, and Paul W. Gandrud, (right), v.p. of the MBA and pres.,
Swift County Bank, Benson. BIGHT—-Four Uniform Commer­
cial Code panelists visit with Kenny Wales (seated right),

MBA. exec, secy., after their interesting program. The four are
(left to righ t): Seated— Clarence W. Berg, v.p., State Bank of
Faribault, and Leroy F. Werges, a.c., Northwestern Natl., Mpls.
Standing—David A. Shern, v.p., 1st Natl., St. Paul, and Ora
G. Jones, Jr., pres., Goodhue County Natl., Bed Wing.

At Bank Management Conference

Non-Par JLaie9 Staff Traininif
Unifor in Code Prate Attention

RECORD advance registration of
A 992
bankers, state legislators and
wives was listed for the Minnesota
Bankers Association Seventh Annual
Management Conference last month
at the new St. Paul Hilton Hotel in St.
Paul, Minn. Despite a succession of
snowstorms and sub-zero tempera­
tures, the vast majority of registrants
was on hand for the informative oneday meeting.
Presiding at the opening session was
Robert G. Lexvold, chairman of the
MBA Bank Management Committee
and president of Metropolitan State
Bank, Minneapolis. The first order of
business was a packed room session to
hear the panel of four speakers dis­
cuss the timely subject “Minnesota
Banking Under the Uniform Commer­
cial Code.” Each speaker reviewed
briefly separate areas of the Code that
had created the greatest number of
questions, then a lengthy question and
answer period was opened to permit
widest participation for everyone pres­
David A. Shern, vice president, First
National Bank, St. Paul, responded
from the platform to one question
from a southern Minnesota banker
who does business also across the
state line with Iowa farm customers.
Mr. Shern advised that Minnesota
bankers loaning to Iowa farmers
should file in the county seat where
the borrower is resident, and if the
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

crops are in a different county, then
a filing also should be made in that
Basically, the UCC is functioning
well in Minnesota as it is in other
states that have adopted it. Minne­
sota went on the Code last July 1, as
did the state of Iowa and North Da­
kota. Neighboring South Dakota goes
on the Code July 1, 1967, Nebraska has
been on the Code since September,
The panel was followed by a “Dis­
cussion of Banking Legislation in the
1967 Session of the Minnesota Legis­
lature” by Robert J. Hubbell, president
of the MBA and president, Eastern
Heights State Bank, St. Paul. The
chief topic of conversation here and in
the halls of the meeting centered on
the controversy over non-par banking.
At the time of the Conference, legisla­
tion to outlaw non-par banking in
Minnesota was being considered in St.
Paul by the state legislature.
Those banks who would be directly
affected had organized a “Fair Ex­
change Committee” and a compromise
bill suggested by this committee of
bankers was endorsed by the MBA it­
self and was receiving favorable con­
sideration in the legislature on that
day. This bill would permit present
non-par banks to invest up to 30 per
cent of their cash on hand in Treasury
bills and securities, and reduce re­
quired reserves from 12 per cent to

10 per cent, with a phase-out- in this
procedure by 1970, at which time all
banks would then be paying at par
and all banks would presumably have
established service charge schedules
of their own choosing.
Another bill was submitted in the
legislature to do away with the threeyear phase-out and require that all
banks pay at par by 1968.
Luncheon speaker Jim Kaat, ace
pitcher for the Minnesota Twins,
proved to be as masterful on the plat­
form as he is on the mound—in fact
more so, for he made his own big hit,
scored heavily with the audience and
made no errors. He impressed every­
one with his complete ease on the plat­
form and his ability to speak like a
veteran political campaigner. His re­
view of personalities in baseball today
was forthright and interesting.
The fore part of the afternoon was
devoted to a panel on “ Ideas You Can
Use for a Staff Training Program in
Your Bank.” It was moderated by G.
Reed Macomber, chairman of the MBA
public relations committee and presi­
dent, Roseville State Bank.
Mr. Macomber pointed out that
throughout all banking transactions
there is one common denominator—
people. He said “We can’t train our
customers to do things certain ways,
but we can train our staffs to do this.”
He followed this with the motto,
“Don’t blame them if you don’t train
them!” He mentioned that the MBA
library will soon have available for
Minnesota banks a total of 25 film­
strips in these six categories: Cus­
tomer Relations, Training, Motivation,
Staff Sales, Bank Service, and Officer
After showing the crowd one of the
training strips titled “Anatomy of an




Minnesota News

Error,” the panelists each spoke for
several minutes on various phases of
the panel topic.
Richard P. Sankovitz, vice president,
First National Bank, Waseca, listed
five things for banks to do in develop­
ing an error-free atmosphere:
1. Employee recognition—most im­
portant to let the employee know he
is doing well, and do this in front of
fellow employees. Monetary recogni­
tion is basic. Dole out more respon­
sibility to those who can handle it.
2. Opportunity—to the employee to
use all of his or her talents. Don’t
hold back employees with more tal­
ent than you are using from them;
let them feel they are a more impor­
tant part of your bank.
3. Job enjoyment — keep working
conditions neat, clean and pleasant.
Keep modern equipment. Have a Cus­
tomer Appreciation Day, and invite
the public in to say hello to your tell­
4. Job security—set goals for each
employee’s duties and recognize the
employee when he performs that job
right so that he knows he is doing
what you want and feels secure in
knowing he is achieving something.
5. Understanding—good communica­
tions is the best way to achieve this.
Have an understanding with clerical
help and bookkeepers about errors.
Let them know that you understand
these things happen, but also let the
employees know that errors won’t al­
ways be acceptable — that they can’t
become a way of life.
Donald A. Sirek, cashier, State Bank
of New Prague, asked a series of ques­
tions: How much time do we devote
to creating and improving our bank’s
image? How much time to the hir­
ing of personnel? How much time is
spent with local high schools where
replacements and customers come
from, and with the teachers who de­
velop them? Do we have proper se-

The Ace Pitcher Meets the Senator—Jim
Kaat (standing right), top pitcher for the
Minnesota. Twins, is introduced to TJ. S.
Sen. John Sparkman (Dem., Ala.) by MBA
Pres. Robert J. Hubbell (standing left),
while Robert G. Lexvold enjoys the scene.
Mr. Lexvold is chmn. of the MBA bank
management committee and pres., Metro­
politan State Bank, Mpls.

lection methods? Do we look for the
young person who has achieved in
outside activities, thus showing he’s
able to achieve?
Regarding in-bank training, Mr.
Sirek said a bank should have an in­
structor who is knowledgeable in the
job, interested, and able to show and
communicate. There should be a reg­
ular routine for staff training so each
person gets similar training. Staff
meetings of an informal nature should
be held each two weeks, and when
good ideas are put forth, use them.
He suggests individual sessions with
employees on the anniversary of em­
ployment, or more often if needed.
Stress on occasion one’s appearance,
the need for neatness, dress, cleanli­
ness; also the need to be aware of the
customer’s needs at all times. Work
with local schools on a continuing ba­
sis. Always be alert to ways you can
improve your procedures and where
you can seek new business.
Monroe Stenerson, vice president,
Richfield Bank & Trust Company,
talked on “Cross Selling” of services.

LEFT— Minnesota’s four active bankers who are members of
the state legislature (left to right) are: Sen. Baldy Hansen,
pres., Farmers State, Lyle, and State Bank of Rose Creek; Sen.
Clifford C. Sommer, pres., Security Bank & Trust Co., Owatonna;
Rep. Pat DuBois, pres., First State, Sauk Centre, and Sen. Wil­
liam G-. Kirchner, pres., Richfield Bank & Trust Co., Richfield.


He said this is the least expensive sale
made in a bank and should be utilized
regularly by all employees. He urged
that banks make all employees com­
pletely aware of any new pamphlet,
any new service, advertisement or
similar announcement to the public
before it does become public knowl­
edge, so the employees will not only
know about it first, but will feel more
like a part of the entire bank effort
and more prone to help sell the new
service. He reviewed a number of sit­
uations with the aid of charts, show­
ing examples of how cross selling can
be accomplished.
Mr. Macomber, in his summary, said
it is impossible to do the job of bank­
ing without people. The bank needs
customer orientation, properly trained
personnel, and properly motivated
The Hon. John Sparkman, U. S.
Senator (Dem., Ala.), was the conclud­
ing speaker with his look at “The
Washington Scene.” Because of his
position as chairman of the Senate
Committee on Banking and Currency
and his seat on other key Senate com­
mittees, Senator Sparkman gave a
most interesting picture of activities
that go on in the banking committee
and those dealing with foreign affairs.
He said that since banking legislation
was so comprehensive in the last ses­
sion, he does not predict at this time
anything of major importance now in
banking legislation for this session.
The Senator stated that Congress
made it clear that it wants bank merg­
ers considered in a separate way from
consideration of other types of merg­
ers, and added, “ I suspect we’ll soon
have a Supreme Court decision re­
affirming the action taken by Congress
as on bank mergers.”
A total of 270 Minnesota state legis­
lators and wives were scheduled to be
guests at a reception and dinner that
evening to conclude the Bank Manage­
ment Conference program.— End.

RIGHT— Panelists discussing “ Staff Training Programs” were
(left to right): Monroe Stenerson, v.p., Richfield B&T, Rich­
field; Richard P. Sankovitz, v.p., 1st Natl., Waseca; moderator
G-. Reed Macomber, chm. of MBA public relations committee
and pres., Roseville State, and Donald A. Sirek, cash., State
Bank of New Prague.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Minnesota News

NEWS . . .

(Continued from page 63)
ant trust officers are Richard B. Hume
and Charles T. Silverson, Jr.
In more recent promotions, Donald
M. Anderson and John H. Olson were
elected vice presidents and Peter A.
Heegaard and Charles R. Lloyd were
named trust officer and assistant sec­

D. M. A N D E R S O N

J. H. O L S O N

Wallace E. Johnson and George H.
Kelby were named assistant cashiers

military service, and returned in 1947
to be assigned to the bond advisory
division of the banks and bankers de­
partment. In charge of the correpondent bank division bond advisory serv­
ice, Mr. Omlie also has provided direct
service to Minnesota banks within a
50-mile radius of the Twin Cities for
the past 20 years.
Mr. Finrud joined First Securities
Corporation in 1932, which became the
investment department of First Na­
tional the following year. He has held
various trust department positions
and in 1965 was made a division head
New assistant vice presidents are
Edward L. Kalafat, correspondent
bank division; Robert R. Helmerichs,
commercial department; Dwight W.
Anderson, Division E, national ac­
counts and bank relations outside 9th
District; Thomas E. Leary, credit de­
partment manager.

and newly elected assistant trust offi­
cers are Karl H. Kiisa and Joan T.

Donald Anderson joined Northwest­
ern in 1958 as a representative in the
correspondent bank department. He
was elected an assistant cashier in
1960 and an assistant vice president in
Mr. Olson came to Northwestern in
1954 and was named an assistant vice
president in 1963.


Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

=K *


C. R. Pohlad, president of The Mar­
quette National Bank, has announced
the election of Donald Lydon as assist­
ant vice president, by the board of di­
rectors in charge
of the B a n k ’ s
M ortg a ge Loan
Departm ent. He
su c c e e d s

P au l

P etterson w h o

has retired.
Mr. Lydon has
been w ith M ar­
quette since 1966.
Prior to coming
to Marquette he
had been assist­
ant vice president of Draper and Kra­
mer, Inc., real estate management
He has been in the mortgage loan
field since 1950, when he worked for
United Benefit Life Insurance Com­
pany, Omaha.


>i= *

Richard Stebbins & Associates, Min­
S. R. O M L I E

J. s. F I N R U D


The retirement of a prominent sen­
ior officer and promotions for 12 other
staff members of First National Bank
of Minneapolis were announced re­
cently by President Gordon Murray.
Rufus W. Hanson, executive vice
president and widely recognized as a
credit management authority, retired
January 31, bringing to a close a 39year career as a banker. He joined
First National in 1928, served from
1936-42 as a vice president of First
Bancredit Corporation in St. Paul,
then returned to First National where
he has held the post of executive
vice president since 1954. His busi­
ness experience prior to entering the
banking field was with Dun & Bradstreet and Ernst & Ernst. Mr. Han­
son is a former president of Robert
Morris Associates and a member of
the Association of Reserve City Bank­
Promoted to vice presidents were
S. R. Omlie, correspondent division,
and Joyce S. Finrud, trust department.
Both were assistant vice presidents.
Mr. Omlie has been with the bank
since 1933, served briefly with First
Service Corporation before entering

Joseph B. Mulcahey, 66, retired as­
sistant manager of the Lake Street
Office of the Northwestern National
Bank of Minneapolis, died last month.
He retired in 1965 after 43 years with
the bank.

neapolis financial advertising agency,
has announced that the First National
Bank of Anoka and the Swift County
Bank of Benson have named the Steb­
bins company to handle their advertis­
ing, promotion and marketing pro­


P e q u o t Lakes

E. L. K A L A F A T

R. L. P A R N E L L

Mr. Kalafat has been with the bank
since 1956 and is well known through­
out the upper midwest states. He was
captain of the University of Minnesota
basketball team and later played with
the Minneapolis Lakers pro team.
Elected a ssista n t cashiers were
Richard L. Parnell, co r r e s p o n d e n t
bank division; Arthur C. Hopper, Da­
vid A. McChesney, P. James Sicora

and Duane M. Glad, all with loan or
operating divisions. Robert B. Gilles­
pie, Jr., was named assistant secre­
tary, trust department.



Northwest Bancorporation has an­
nounced the election of Howard H.
Amborn as assistant secretary and
Vernon O. Carlson as assistant con­

A remodeling of the intorior of the
Farmers State Bank has recently been
completed. New and extended coun­
ters and a lowered ceiling feature the
“new look” in the bank lobby. C. A.
McLaird is president.

-> r

U n iq u e “ F in a n cia l R ev iew ”

A unique year-end report entitled
“Financial Review 1966” has been
made up for customers of the Peoples
State Bank, Cleveland, Minn.
Changing the pace from the routine
printed statement, H. C. Wollam, pres­
ident of the bank, prepared the report
in an 8% by 11 format, using a ring
A typical deposit slip “from one of
the young farmers in the community”
is illustrated on the front cover. Suc­
ceeding pages emphasizes the role of
the farmer and his importance to the
bank. Included in the report is a
comparative statement of the financial
condition of the bank in 1966 and 1965.


Minnesota News

4 0 0 ita ill¿vrs



Case, president, Security State Bank,
Cannon Falls, Minn., who has served
his local schoolboard for 39 years and
provided leadership in other phases
of civic effort for all those years.
Mr. Pohlad said this award, a silverengraved bowl, would be presented
each year to a banker similarly se­
lected by the committee.
W ayzata

Robert P. White, president of Van
Dal, Inc. in Long Lake, has been elect­
ed to the board at North Shore State
Bank here. He is also president of
the Automatic Cattle Feeding Equip­
ment manufacturers.
W a ln u t G ro v e

Thomas Masterson, 90, vice presi­
dent of the Citizens State Bank, died
last month.
W a rre n
ATTRACTIVE LOBBY of Marquette Natl. Bank recently completed.
p p r o x im a t e l y


b a n k ers

and wives were guests of Mar­
quette National Bank, Minneapolis,
when the bank officials were hosts at a
special open house for correspondent
banks last month on the occasion of
opening the Marquette’s newlv-remocleled quarters.
After touring the beautiful new
public area on the main floor, the en­
larged and modernized vault and cus­
tomer area downstairs, and the com­
pletely r e d e c o r a te d and enlarged
second floor, the guests gathered in
the main ballroom of Hotel Radisson
for a reception and dinner.
President Carl R. Pohlad, officers
and directors were on hand to greet
the bankers in each department as
they went through the bank. Focal
point for the visiting bankers was the
second floor area where offices of
R. W . Crouley, senior vice president,
and his correspondent bank staff are
The most striking feature of the
main floor customer lobby is the large
circular tellers area. In the center of
the tellers circle is an enclosed, wellguarded elevator leading directly to
the lower level just a few steps from
the main vault. Bank Building and
Equipment Corporation of America,
St. Louis, did the interior work on the
main floor and. part of the lower level.
At the dinner, President Pohlad re­
called for the guests that 11 years
ago, Marquette National was in a
building with a frontage of 34 feet
and was spread over three adjoining
buildings. At that time there were
89 correspondent accounts in the
bank. The spacious new quarters are
located in the building occupied sev­
eral years ago by Marquette, and Mr.

Pohlad noted that under the leader­
ship of his predecessor, the late Rus­
sell Stotesbery, and of Otto H. Preus,
vice president of the bank and former
head of the correspondent depart­
ment, the number of banks served
by Marquette now has grown to 466.
These are located primarily in Minne­
sota, Iowa, Wisconsin, South Dakota,
North Dakota and Montana. Bankers
from all these states were in attend­
ance. Mr. Pohlad introduced the
members of the board of directors, in­
cluding Mr. Crouley, who was intro­
duced as a new member of the bank
He then announced that a commit­
tee had been appointed to select the
country banker who has made out­
standing contributions to his com­
munity during past and current years.
The committee’s choice was D. Fay

Peoples State Bank

The Peoples State Bank last month
moved into a new modern building.
Clarence Nybakken, president, reports
that an open house will be held at a
later date.
State Bank

Mrs. Olga M. Peterson, assistant
cashier of the State Bank of Warren,
retired last month after nearly 25
years of service. Harold Bustrack is
president of the bank.
W h e a to n

Loren Miller, who has been auditor
of the First State Bank, has been
named assistant cashier. He has been
with the bank two years.

New director of the First National
Bank is John A. Woodhall, Jr., vice
president and general manager of Cen­
tral States Construction Company.

Neir ituildinif for St.

ARCHITECT SKETCH of the proposed new First American National Bank at St. Cloud.
B. R. Meinz, president, in announcing the extensive building program, said plans
include two plazas, covered motor banking, two walk-up tellers, fountain, sculpture,
helioport and built-in expansion. Construction is already underway, and completion is
expected in early 1968. Dykins-Handford of Minneapolis are the Architects.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

ciation’s county key banker in Davi­
son County.

S o iit li Dei k o la

Commercial Trust & Savings Bank

James Stewart, vice president of the
Commercial Trust and Savings Bank,
was a speaker at the recent employeremployee banquet sponsored by the
Mitchell High School distributive edu­
cation club. Mr. Stewart was recent­
ly named the Mitchell .Jaycee “Boss
of the Year.”







A b e rd e e n

S. H. Larsen, president of the First
National Bank of Aberdeen, reports
that David Erickson of the Groton
Branch has been promoted to assist­
ant cashier. Mr. Erickson joined the
bank two years ago following gradu­
ation from college.

Dennis Karstens and Mrs. Joyce
Miller have been named assistant cash-

iers of the Canistota Branch of the
United National Bank of Brandon.

Mitchell National Bank

Robert G. Briere last month was
elected president of the Mitchell Na­
tional Bank. J. N. Shelby, former
president, remains on the bank’s board
of directors.
Mr. Briere joined the bank in 1954.
He is the South Dakota Bankers Asso­


P ierre

State banks in South Dakota showed
increases of nearly $30 million in total
assets during 1966, according to the
comparative abstract prepared by Her­
man Lerdal, superintendent of banks.
Total time deposits climbed to a
point just slightly over $1 million less
than total demand deposits for all the
state banks. Demand and time depos­
its increased about $26.8 million as
compared to year-end 1965.
Pierre National Bank




Since 1860,
firs t o f a ll!

First National Bank
o f Denver
17th and WELTON


Northwestern Banker, March, 1967


Rapid City

Federal Reserve Bank of St. Louis

Stockholders of the Pierre National
Bank have added Pat H. Feeney, a
Pierre cattleman, to the board of di­
rectors. In other changes of respon­
sibilities, Mel Cunningham, an assist­
ant vice president, was named man­
ager of the installment loan depart­
ment and Chester Boyle, assistant vice
president, was designated manager of
the real estate department.

At the recent annual meeting of the
American National Bank and Trust
Company, Walter Simons was named
assistant cashier of the Bear Butte
Valley office in Sturgis, according to
A. E. Dahl, chairman.


R oslyn

The merger of the Farmers & Mer­
chants State Bank of Roslyn into the
Security Bank of Webster was com­
pleted last month and the Roslyn bank
is now operating as the Roslyn
Branch of the Webster bank.
George Gilbertson, who had been
president of the Farmers & Merchants
State Bank here since 1965, was
named vice president and director,
and will be managing officer of the
Roslyn Branch. Arthur L. Hanson
has been named assistant vice presi­
dent and Alma Skaaden and Thelma
Nerland are assistant cashiers.
The merger of the Roslyn and Web­
ster banks resulted from the purchase
of control of the Farmers & Mer­
chants State Bank by G. L. Hill and
his associates of Aberdeen last June.
Immediate steps were taken to accom­
plish the merger is it now stands.



South Dakota News


LEFT—R. E. Wiley, pres., Bank of Cresbard; Albert Haerter, cash., Farmers State, Hosmer; H. L. Margeson, v.p., First State, Roscoe,
and Oscar E. Huber, state repr. from Faulk, McPherson and Edmunds Counties. RIGHT—J. S. Heidhusen, pres., South Dakota Bank­
ers Assn., and pres., Ipswich State Bank; R. G. Briere, v.p., Mitchell Natl., and Elvern Varilek, state repr. from Brule and Charles
Mix Counties.

Association Hosts legislators

ed assistant cashier

South Dakota Bankers Asso­
ciation held their Legislative Re­

T rip p

ception in Pierre last month, hosting
about 150 members of the South Da­
kota Legislature, state officials and
According to Roy Terwilliger, exec­
utive secretary of the association, two
receptions were held with the associa­
tion officials entertaining the gover­
nor, constitutional officers and mem­
bers of the Senate at one. Mem­
bers of the House of Representatives
were then entertained at the second
In addition to the officers of the
association, members of the Executive
Council and the Legislative Commit­
tee, bankers designated as county key
bankers of the association, were also
on hand.
S io u x Falls

Carl Norberg, farm manager for the
trust department of The National
Bank of South Dakota has been named

at the


The Dakota State Bank of Tripp
held open house last month in ob­
servance of the bank’s 65th anniver­
sary. R e f r e s h me n t s were served
throughout the day.
V e r m illio n

WALTER PAILING (left), pres., Ameri­
can Natl. B&T, Rapid City; Frank Farrar
(center), Attorney General, State of South
Dakota, and S. H. Larsen, pres., First
Natl., Aberdeen.

“Outstanding Young Man of the Year”
by the South Dakota Junior Chamber
of Commerce.
Mr. Norberg is a former assistant
manager of the Sioux Falls Chamber
of Commerce. A graduate of Hawarden High School in Iowa, he joined
the bank in 1964.
Also at The National Bank of South
Dakota, Dick Uithoven has been elect­

Richard Squires, associated with
Associates Finance Company for more
than six years, has joined the Citizens
Bank as manager of the installment
loan department. His most recent
position with Associates was in South
Sioux City, Neb., where he was man­
O p e n Y a n k to n F acility

The First Dakota National Bank has
opened its new drive-in facility at 201
West Third Street in Yankton, ac­
cording to Hugh C. Danforth, presi­
The new facility has an adjoining
parking lot and extended hours to
accommodate customers.

LEFT—Roy Terwilliger, exec, secy., South Dakota Bankers Assn., Huron; E. C. Murray, state repr. from Pennington County, Rapid
City, and James Jelbert, speaker, House of Representatives. RIGHT—Rep. E. Klein Graff, Rep. Eunice Anderson (seated left), and
Rep. Ellen Bliss, all of Sioux Falls, with M. J. Colton (right), pres., Natl. Bank of South Dakota, Sioux Falls.
Federal Reserve Bank of St. Louis

Northwestern Banker, March, T967


W illis to n

John Lesmeister has joined the staff
of the American State Bank as an
assistant agricultural representative.
He was formerly a field representative
in the animal health division of the
G. D. Searle Company, according to
W. S. Davidson, Jr., president of the

North Dakota










H elena
B ism a rck

G ra fto n

The only change in the official fam­
ily at the First American Bank and
Trust Company resulting from the
bank’s annual meeting was the elec­
tion of Dr. Arne J. Springan to the
board of directors.

The many community friends of W.
J. Johnston, chairman of the Walsh
County Bank, honored him last month
when he announced his retirement.
He had been with the Walsh County
Bank and its predecessor banks since
1913 and served as president from
1937 to 1964 when he was elected

C avalier

Ross A. Page, vice president and di­
rector of the First Merchants and
Farmers Bank, has resigned after
many years of service. Advancing
from cashier to vice president is Wal­
lace J. Graalum, and Don E. Currie
has been promoted from assistant
cashier to cashier.
King E. Thoelke, Cavalier mer­
chant, has been named to the board
filling the vacancy caused by Mr.
Page’s resignation.
D ic k in so n

Gene Oakland has been named vice
president and cashier of the Liberty
National Bank and Trust Company, re­
placing Arthur Davis, who resigned to
pursue another business venture.
F argo

Warren B. Anderson, a certified
public accountant, has been elected to
the board of directors of the First
National Bank of Southwest Fargo,
according to G. H. Pierson, executive
vice president.
F argo

William F. Graves, chairman of the
First National Bank and Trust Com­
pany, has announced the election of
Mertan A. Bobo
to the position of
trust officer.
Mr. Bobo has a
wide background
of experience in
trust and invest­
ment work com­
ing to F a r g o
from the trust
department of the
Safe D eposit
M E R T O N A. B O B O
Bank and Trust
Company of Springfield, Mass., where
he has worked in all phases of trust
operation since 1962.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

G ran d F o rk s

Shareholders of the First National
Bank, at their annual meeting held
last month, elected James O. Stolee to
the board of directors. Mr. Stolee is
manager of the Border States Electric
Jam estow n

Norah A. Risbrudt is a new assistant
cashier at the Stutsman County State

Kent M. Johanneson has been elect­
ed to the board of directors of the
First Bank of Langdon. He replaces
A. J. Backes, a director for 20 years,
who asked that he not be re-elected.
M andan

A long-time director of the First Na­
tional Bank, Charles D. Cooley, re­
tired recently. He was elected in
1944, and is succeeded on the board
by Kenneth Porsborg, Mandan busi­
M ed o ra

Miss Enid Nuemiller has been
named manager of the Medora Sta­
tion of the Farmers and Merchants
Bank. Miss Nuemiller has been as­
sistant cashier at the First Security
Bank of Morristown, S. D.

Montana bankers are currently be­
ing asked to indicate their interest in
accompanying North Dakota bankers
on the annual legislative trip to Wash­
ington, D. C. The trip is scheduled for
April 17, 18 and 19.
New M u rd o ck C ashier

John O. Bohmer, president of the
First State Bank of Murdock, an­
nounced the election of Donald R.
Peterson of Golden Valley as cashier
of the bank.
Mr. Peterson is replacing Selby C.
Kiesling who will be retiring in the
spring after 28 years of service with
the bank.
Mr. Peterson was also elected a di­
rector of the bank at the shareholders
annual meeting held last week.
The new cashier was previously
associated with the Northeast State
bank in Minneapolis where he was
assistant cashier. Prior to that he was
with North Central Life Insurance
company, St. Paul, and with Pru­
dential in Minneapolis.



R o b e rt B. W e b b

Robert B. Webb, life-long resident
of Bismarck and son of a pioneer Bis­
marck family, passed away in Florida
last month.
This was revealed by Melvin D.
Rittger, president and director, who
said the escrow requirement in the
offering of 170,000 shares was reached
Mr. Webb was president of the
Webb Realty Corp., owner of much
commercial property in downtown
He was a director of the Dakota
National Bank and a former director
of the Provident Life Insurance Co.
in addition to other business associa­



Features O scar W . B ell
New E ngland

The Citizens State Bank last month
moved into its new building and
marked the event with an open house
for the community. An estimated
4,550 people toured the new building
according to Maurice P. O’Connell,
president of the bank.

Oscar W. Bell, who retired from
the American State Bank, Williston,
at year-end was the subject of an
extensive feature article in the local
Williston paper recently.
Mr. Bell retired after being in the
banking business for 62 years. He
started at a salary of $15 per month.



These bankers know
what’s going on in
Southern California.

James C. Barrett, Jr.
Vice President

John J. Stine
Vice President

Richard D. Cramolini
Asst. Vice President

Nicholas Price
Asst. Vice President

Richard D. Frey
Asst. Cashier

Central Regions of National Division

They should.
They represent the largest
bank headquartered there.
Make your financial partner


©1967, Security First National Bank

m e m b e r fe d e r a l d epo sit in su r a n c e c o r po r a t io n

Head Office: 561 South Spring Street, Los Angeles, California 90013 • Telephone: (213) 620-6211
Over 340 branch offices serving Southern California.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis




...d e s c rib e s th is n e w e s t m e m b e r o f C e n tra l’s
C o rre s p o n d e n t te a m . H e becam e a b a n k e r
because he b ro k e h is a r m ... chose to w o r k a t
th e C e n tra l because i t ’s an "e n th u s ia s tic ” b a n k .

B ill Gossett. Art Bridgewater. John Edmiston and Don Echtermeyer o f Central's Correspondent team.
G o lfe r , te n n is p la y e r , a vid rea d er, n a tiv e C o lo r a d a n . . .
J o h n E d m is t o n b elieve s a n y t h in g w o r th d o in g is w o r th
d o in g r ig h t . A n d h is e n t h u s i a s m is c o n t a g io u s !
J o h n b r o k e h is a r m w h ile p la y in g c o lle g e i n t r a m u r a l
b a s k e t b a ll . . . w e n t to w o rk a t th e F ir st N a t io n a l B a n k
o f G r e e le y as a m a i l b o y

. . . la t e r b e c a m e a t e lle r . A f t e r


g r a d u a t i n g f r o m C o lo r a d o S t a t e C o lle g e , h e jo in e d
B a n k o f A m e r ic a , t h e n t h e C e n tr a l in 1963.
J o h n E d m i s t o n ’ s fe rv o r fo r h e lp fu ln e s s m a k e s h i m
a p e r fe c t a d d it io n to o u r C o r r e s p o n d e n t t e a m .
F o r d e s k -s id e a s s is ta n c e o n a n y o f y o u r p r o b le m s ,
c a ll o n a n y o f u s.













C O .

PARK —15th and Arapahoe St., Denver, Colo., 80217-303/825-3181
Member: Federal Deposit Insurance Corporation

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Federal Reserve System


L ittleton

Colorado N ow s
Colorado Bankers Assn.

Cherry Creek National Bank

A u ro ra

William Hinkley, superintendent of
schools in Aurora, has been elected a
director of the First Bank of Aurora.
D en v er

Frank P. Gardiner, a vice president
of the First National Bank, has been
elected a vice president of the Denver
Chamber of Commerce. He is also
a member of the board of directors of
the Chamber.
Central Bank & Trust

The promotions of four officers were
announced recently by Max G. Brooks,
president. Harley N. Patton was ad­
vanced from vice president to senior
vice president. Don Echtermeyer,
Vern Walker and Ben Gibson were
all moved from assistant vice presi­
dents to vice presidents.

Appointment of Edward A. Rhatican as assistant vice president of the
Cherry Creek National Bank has been
announced by Weldon B. Hamilton,
Jefferson County Bank

Fred Kirschke, president of the Jef­
ferson County Bank, has announced
the installation of a new computer
system providing a complete data
processing center. The new NCR 315
computer will provide complete proc­
essing of the various bank functions,
as well as perform data processing
work for other business firms and or­
ganizations in the county.
A series of meetings to familiarize
business executives of the capabilities
of the new equipment will be held in
the next weeks, Mr. Kirschke said.

Gary C. Moote and Miss Julia M.
McDowell have been elected assistant
cashiers of the Lakeside National
Bank, according to C. Gale Sellens,
D en v er A p p o in tm e n t

H. N. P A T T O N


D. H. E C H T E R M E Y E R

Mr. Patton has been with the Central Bank for 20 years. He was elect­
ed vice president in 1961 and has been
manager of the installment loan de­
partment since 1963.
Mr. Echtermeyer, a former officer
of the Commerce Trust Company in
Kansas City, joined the bank in 1965.
He travels in Nebraska and other
areas for the bank’s correspondent de­
Mr. Walker is a commercial loan
officer and Mr. Gibson will continue
as manager of the customer services

Appointment of Eugene Halaas Jr.
as trust administrator for the Ameri­
can National Bank has been an­
nounced by J. E. Montague, president.

Xeir MiniIdint/

Plans of the Arapahoe Bank of Lit­
tleton to acquire the assets of and
assume the liabilities of the Valley
National Bank, also of Littleton, have
been approved by the Colorado Bank
Board. The surviving bank will be
known as the Arapahoe Valley Bank
and will operate at the present Valley
National’s location.
The Arapahoe Bank is one of the
banks in which controlling interest is
held by the Denver U. S. Bancorporation.
W in s A d v e rtisin g A w ard

The Colorado National Bank won a
NIKE award presented annually by
the Advertising Club of Denver. The
award was in the newspaper category
for black and white advertisements
over 500 lines. Dave Cheever is direc­
tor of advertising for the Colorado
National Bank.
S p o n so rs B u sin ess S em in a r

A day-long seminar for 55 execu­
tives of Denver area manufacturing
firms was held by the Colorado Na­
tional Bank last month. The semi­
nar, the third in a series being given
by the bank, was conducted by Rob­
ert G. Tone and Daniel L. Cowell of
the accounting firm of Ernst & Ernst
and dealt with inventory and costs
L akew ood

I. Thomas Curry, a former banker
in Denver and Missouri, has returned
to commercial banking as vice presi­
dent in charge of small business de­
velopment at the Rocky Mountain
Bank, Del E. Cooper, president, has

forDim li

Center State Bank

Gerald G Hughes and Rolf G. Kleeberg have been promted to assistant
vice president of the Center State
Bank, according to Loren E. Doty,

ARTIST’S CONCEPT of the 6,200-square-foot Villa National Bank at Villa Italia Shop­
ping Center west of Denver shows building's architectural design. The brick and stucco
exterior will blend with other center’s buildings. Scheduled completion for the bank is
mid-June, according to Stephen L. R. McNichols, president.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

C od y




previously in the
N orthwestern B anker , G. M. Rafferty,
president, Wyoming National Bank,
has announced the promotions of four
officers. They are: A. F. Haskey ad­
vanced to executive vice president and
cashier, Robert W. Miracle to execu­
tive vice president, John R. Gray to
assistant vice president, and Jack Dal­
ton to operations officer.
Mr. Haskey began his banking ca­
reer with the old Tootle-Lacy Bank of
St. Joseph, Mo., and has been with the
Wyoming National since 1948. Mr.
Miracle is a director of the bank and
a senior vice president since 1965.
In other action, Jack Rosenthal, vice
president and general manager of a
Casper radio-television station, has
been elected to the board.
Security National Bank

The lobby of the Security National
Bank was recently the scene of a twoweek art exhibit of the works of Don

Henne, a commercial artist and fine
arts student at Casper College.
First National Bank

The First National Bank was re­
cently the first recipient of the city’s
newly-created Beautification Award
presented in recognition of the recent­
ly completed parking facility.
The bank was also last month pre­
sented with a problem of what to do
with $131,000 when it was appointed
administrator of the estate of a re­
tired railroad laborer. Upon the man’s
death, it was found that he left a ma­
jor estate and no living relatives could
be found. The search, however, is
C h eyen n e

Another bank offering the facilities
of the lobby for an art exhibit was
the American National Bank. Mrs.
Donna Morris displayed her drawings
and paintings during the month of

Lloyd Taggart and members of his
family last month announced the sale
of their interest in the Shoshone-First
National Bank to a group of local in­
vestors headed by the present direc­
tors of the bank, represented by R. S.
Allen, president; Oliver W. Steadman
and C. E. Webster.
The Shoshone-First National Bank
has always been a locally owned insti­
tution and this purchase will insure
a continuation, said President Allen.
L usk

A rotating time and temperature
sign has been installed by the Lusk
State Bank.





R iv erto n

Del Crouse, president of the Ameri­
can National Bank, was recently rec­
ognized by the National 4-H Club
Foundation for his outstanding serv­
ice the past five years as bank chair­
man for the 4-H Club Foundation.



G. O. Nixson has been elected to the
board of directors of the First Nation­
al Bank, filling the vacancy created
by the death of Hugh McDonald, long­
time director. Mr. Nixson is a Wheatland businessman.
A. Edward Kendig is executive vice
president of the bank.



“ A liv e and H a p p y ”

In last month’s issue, the election
of Thomas F. Stroock as a director of
Security Bank and Trust Company,
Casper, was announced. It was re­
ported that he filled the vacancy cre­
ated by the death of H. P. Nagel. This
was incorrect and the director who
died was Robert J. Murphy.
Mr. Nagel, chairman of the board,
reports to the N orthwestern B anker ,
“ I am well and happy!”
Casper P ro m o tio n

Covers Canada... Spans the World
With over 1000 branches throughout B a n k o f M o n t r e a l
Canada and around the world and an
international network of correspond­ CA NA DA'S FIRST BANK
ents — the Bank of Montreal is well
CW m Cariada..Spa/nAfta IPcrtid.
qualified to help you and your clients
north of the border and throughout CHICAGO: Board of Trade Bldg.
141 West Jackson Blvd.
the world. Write or visit any one of
our five United States offices.

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

Mrs. Jean Bramson has been named
assistant cashier of the Hilltop Na­
tional Bank, Casper, according to an
announcement from Thomas M. Hockaday, president.
Mrs. Bramson will work in the
processing of real estate loans and
in public relations for the banks. She
joined the bank in 1964.
T o w er

Thomas Dragavon, vice president of
the State Bank of Tower, Minn., has
been elected to the bank’s board of
directors. John Dragavon is president
of the bank.


New assistant cashiers at the Great
Falls National, according to Forrest C.
Hedger, president, are Wayne S. Dor­
cas, Donald S. Hooper, John D. Hough­
ton, G. P. McGarraugh, Dean J. Hart,
and James M. Ross.

S fo n ta n a







F o rm e r M o n ta n a B an k er
P ro m o te d b y C rock er-C itizen s

David A. Orlady, until August, 1966,
a vice president of the Miners Bank
in Butte, has been named assistant
vice president and manager of Crock­
er-Citizens National Bank’s Oxnard
Prior to his association with the
Butte bank, Mr. Orlady was with the
Midland National Bank in Billings
and the First National Bank in Havre.

named a vice president in 1961.
Mr. Stratton has been with the bank
since 1945 and is a native of Exeter,
Neb. Mr. Heath joined the bank in
1956 and is a graduate of Nohthwestern University and the University of
Montana law school.

B illin gs

R. M. Waters, president of the Se­
curity Trust & Savings Bank, has an­
nounced that three officers have been
elected to the board of directors. Re­
t i r i ng af ter 42
y e a r s on the
board was Henry
T. Hedden.
The new direc­
tors are E. Bur­
ton Maynard, vice
president; Rex B.
Stratton, v i c e
pr es i dent , a n d
James W. Heath,
v i c e pr e s i de nt
and trust officer.
Mr. Maynard has been with the
bank since 1947 when he started as a
messenger and check filer. He was




J. K I N G

The bank also recently received
some special recognition for activity
in the area of farm loans. A citation
was presented to C. P. Moore, senior
vice president, on behalf of the bank
by the Equitable Life Assurance So­
ciety of the United States noting that
the bank qualified for the Top-Ten
Honor Roll of leading farm loan cor­
respondents in the area.
H arve

J. W . H E A T H

R. B. S T R A T T O N

Also announced previously in the
N orthwestern B anker are the promo­
tions of William C. Magelssen and Eu­
gene E. Coombs from assistant vice
presidents to vice presidents; James
H. Nicholson, Jr., and LaVerne G.
Throop from assistant cashiers to as­
sistant vice presidents; and the elec­
tion of Kenneth L. Eames, Jr., and
Roy F. Nelson to assistant cashiers.
G reat Falls

As announced previously in the
Robert E. Lee
has been promoted from assistant vice
president to vice president of the
Great Falls National Bank. Moving
from assistant cashier to assistant vice
president is John J. King.
Mr. Lee has been with the bank
since 1959 and an assistant vice presi­
dent since 1964. Mr. King joined the
bank in 1952. Both men are in the
commercial loan department.
N orthwestern B anker ,

Dale Clausen has been elevated from
assistant cashier to cashier of the
First National Bank. He has been
with the bank since 1963.
G reat Falls

Robert F. Carlson, formerly with
the correspondent division of the
First National Bank of Minneapolis,
has been named
a vice president
by th e F i r s t
Westside Nation­
al Bank of Great
Mr. C a r l s o n
has served with
banks in Ortonville, Minn., and
S p oon er, W is.,
the Small
R. F. C A R L S O N
Business Admin­
istration in Fargo, N. D. He had been
with The First National Bank of Min­
neapolis since 1964.


1 0 0 7


R. E. L E E

G r o u p

J tr e tin ff

S r h n iu le


May 12

Group 6


May 13

Group 7

Deer Lodge


May 15

Group 2

Miles City


May 16

Group 4



May 17

Group 5



May 19

Group 1



May 20

Group 3

Cut Bank or East Glacier


Northwestern Banker, March, J967
Federal Reserve Bank of St. Louis


O u r new m an,
M r. B ro w n ,
goes in fo r c u ltu r e ..

D T /Hf
/± L r ill


A B a c h e lo r o f S cien c e d eg ree in A g ­
ric u ltu ra l B u sin e ss fr o m Io w a S ta te
U n iv e r s ity .
F o rm e r m e m b e r o f th e B o o n e C o u n ty
F air B o a rd .
D istr ic t S a le s M a n a g e r fo r a liv e sto c k
fee d c o m p a n y .
S e v e ra l y e a rs o f b a n k in g e x p e rien c e
in a g ric u ltu ra l le n d in g a n d fa r m m a n ­
a g e m e n t.



Give any one of them a call

Everett Brown’s experience is another
good reason for you to use the spe­
cialized service we provide in every
phase of agricultural and livestock
banking. Y ou’ll have the opportunity
of seeing him soon.



Member Federal Deposit Insurance Corporation
Northwestern Banker. March. 1967
Federal Reserve Bank of St. Louis



These are some of the qualifications
Everett Brown brings to his job in
the U. S. National’s Correspondent
Bank Department.

Here's the team Everett has joined


U tiJtL

T T T -r P T

1:15 p.m.

Charting a Management
Course—Neil F. Roberts,
president, Denver U. S.
National Bank.
2:00 p.m. Profit and Bank Services
—W. W. Cook, Sr., presi­
dent, Be at r i c e National
Bank and Trust Co.
2:45 p.m. Touch Tone Telephone in
Ba nk i ng — R. F. Spear,
di st r i c t sales manager,
inter-city services, North­
western Bell Telephone
Company, Omaha.
3:30 p.m. Adjourn.

N eb ra sk a


Exec. V.P.


Hank Manaffement Seminar
Sei fur Keavneif
LANS have been announced for a
two-day Bank Management Semi­
nar sponsored by the Nebraska Bank­
ers Association. Tt will be held on
March 28-29 at the Holiday Inn at
According to H. J. Luchtel, chair­
man of the NBA
B a n k Ma n a g e ­
ment Committee
and vice president
of the
Columbus Bank,
speakers on a va­
riety of banking
topics have been
obtained for the
Semi nar. Head­
lining the speak­
N. F. R O B E R T S
ers roster will be
Joseph C. Fenner, vice president of
the First National Bank of Chicago,
and Neil F. Roberts, president of the
Denver U. S. National Bank.


J. C. F E N N E R

W . W . C O O K , SR.

Activities of the Seminar will begin
with a reception and buffet dinner
on Tuesday evening, March 28, from
6:30 p.m. to 8:30 p.m. The actual Semi­
nar program is as follows:
Wednesday, March 29

9:00 a.m.

9:45 a.m.

10:30 a.m.

Presiding—H. J. Luchtel.
R e ma r k s — Th o ma s J.
Aron, NBA president and
president of the Crete
State Bank.
Use of De b e nt ur e s for
Capital—Joseph C. Fen­
ner, vice president, First
National Bank of Chicago.
Coffee break.

10:45 a.m.

11:30 a.m.

12:15 p.m.

The Legislative Outlook—
William H. Osterberg, sec­
retary, Nebraska Bankers
Association, Omaha.
Employee Salaries & Bene­
fits—John J. Sullivan, Jr.,
president, Roeland Park
State Bank, Mission, Kan­


N ew B aby fo r O sterbergs

Mr. and Mrs. Wm. H. Osterberg are
the parents of a baby girl, Susan
Jane, born February 14. Mr. Oster­
berg is secretary of the Nebraska
Bankers Association, and his father,
H. V. Osterberg, is executive vice
president of the association.
The Osterbergs have one other child,
Mark, now age 3, who was also born
on February 14.

New Feil Time

EMBER and nonmember banks
in the Tenth Federal Reserve
District were notified by letter of
January 6, 1967, of a change in time
schedule of credit for cash items, ef­
fective February 17 of last month. In
the letter, signed by George H. Clay,
president of the Kansas City Fed, it
was stated:
“Effective Friday, February 17,
1967, Saturday will no longer be
counted as a business day by this
bank and its branches at Denver,
Oklahoma City and Omaha in comput­
ing credit availability for deferred
credit cash item deposits . . . This
change will affect credit availability
for Friday deposits of cash items
which carry a two-business-day defer­
ment. Presently, credit for such items
is given on the following Monday, or
on the next succeeding business day
if a legal holiday is involved. Ef­
fective February 17, 1967, credit for
such items will be given on the fol­
lowing Tuesday, or on the next suc­
ceeding business day if a legal holiday
is involved.”
Opposition to the ruling has been
lodged with the Federal Reserve Bank
of Kansas City. Herman Brockmeier,
senior vice president, National Bank
of Commerce, Lincoln, outlined the
position of dissenting banks in the
bank’s “News and Views” letter to
correspondent banks as follows:
“ Statements filed in opposition to

the Federal Reserve policy as out­
lined in the letter estimate that banks
in the Tenth Federal Reserve Dis­
trict will lose $30 million available
funds as the result of the arbitrary
move by the Federal Reserve System
in giving available fund credit to
banks. This will have an adverse ef­
fect on the ability of the correspond­
ent banks in the District to meet the
credit demands of banks located in
rural areas, further retarding eco­
nomic development in the District.
“ The net effect of this action by the
Federal Reserve System changes the
availability of funds on deposit re­
ceived by us from Thursday night
through Friday that contains checks
drawn on two-day availability points.
(This includes all checks drawn on
Nebraska banks except Lincoln and
Omaha cleared through Federal Re­
serve System.) Previously, all of
your checks processed by us Thurs­
day night and Friday were available
as collected funds in your account on
Monday morning. Your deposits re­
ceived by us Saturday morning will
continue to be processed by us and
the availability will not change.
Starting this week (February 24) all
items calling for a deferment of two
days would not be collected funds
until Tuesday morning. We are sure
this will affect the entire banking
system and particularly those member
banks that need to adjust their re­
serve positions.”
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

sity will keynote the afternoon theme,
“Pork for Profit,” in setting the stage
for those who follow by factually cov­
ering the “Requirements for Survival”
in the fast moving and profit potential
business of “Raising Hogs 1967 Style.”
Dr. Lavon Sumption of the Cana­
dian Federal Research Station, Leth­
bridge, Alberta, Canada (recognized
as one of America’s top geneticists),
will cover the genetic tools available
to modern swine production.

very latest of “What’s New” in
livestock production will be pre­
sented at Ak-Sar-Ben Field in Omaha,
Neb., on March 30, when correspond­
ent bankers and their farmer-stock­
men guests from seven states will be
hosted by the First National Bank of
Omaha at their annual “Chuck Wagon
Roundup,” according to Mervin F.
A e g e rt e r ,

th e

bank’s assi stant
vi c e pr es i dent
and livestock spe­
The mo r n i n g
program will in­
clude the presen­
tation of the cur­
rent feeder cattle
gr ades for both
calves and year­
M. F. A E G E R T E R
lings by H. B. Tetrick, prominent Omaha area feeder
and livestock feeder cattle buyer and
seller. Visual demonstrations of what

to look for in profitable feeder cattle
selection and differences in gaining
ability, as well as feed utilization, will
be seen.
At noon, all will be guests of the
bank at their “Chuck Wagon Lunch­
eon,” featuring the 1966 Nebraska
State Fair Champion 4-H Beef which
the bank purchased last September
from Jeanne Aegerter, Seward, Neb.
The afternoon program will high­
light Modern Pork Production — top
swine specialists from Canada and
the United States will appear on the
program. “Live on Display” will be
five pens of hogs, developed by Hog
Builders, Inc. of Missouri. Hog Build­
er’s general manager, Paul Jensen,
has developed their program by utiliz­
ing closed lines within three pure
breeds. They call these “Formula
Hogs.” Mr. Jensen will appear on
the program covering “Practical Man­
Dr. Boh Rust of Iowa State Univer-



A recent report from C. W. McManamy, executive director of the Live­
stock Foundation of Omaha, notes
that the Omaha Market was again the
number one livestock market in the
world during 1966. This makes 12
successive years the Omaha Market
has ranked at the top.



Glen E. Bunrus, vice president of

the South Omaha Stockyards National
Bank, appeared on the program of
the National Livestock Feeders Asso­
ciation held in Des Moines recently.
Appearing on the program of the
Annual Farm, Home and Ranch Insti­
tute Meeting in Sheridan, Wyo., last
month was Cecil W . Means, senior
vice president of the bank.



As reported earlier in N orthwestern an application for a national
bank charter has been filed with the
Comptroller of the Currency. The
proposed bank would be located at
Saddle Creek Road and Dodge Streets.
Applicants are: Morris F. Miller,
president; Erhart I). Edquist, director;
Howard M. Johnson, senior vice presi­
dent; John M. Shonsey, executive vice
B anker ,

H i U b o a r il

V o n te s t

WINNER — Wm. S. Graves, a.v.p.,
South Omaha Stockyards Natl. Bk.,
presents a U. S. Savings Bond to
Mrs. Valeria Gelster, an employee of
the bank for winning a billboard
contest sponsored by the bank. Mrs.
Gelster was the first to submit the
locations of the 8 new billboards
placed in the local area since the
first of the year. The contest was
open to all employees of the bank
and the first person to hand in the
exact locations of the large, illumin­
ated and posted Naegle billboards
was eligible to win the $25.00 Sav­
ings Bond.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


T aking our new thoroughbred round the track are cor­
respondent bank officers Jack Babcock, John M arcell
and correspondent bank representative, Louis Narke.
T hey’re watching the sleek, new Om aha N ational IBM
3 6 0 computer in operation, It will break all "track
records” in providing our correspondent banks with the
utmost in bookkeeping E C O N O M Y , A C C U R A C Y and
S E R V IC E .
W e ’re also happy to have Louis N arke with us. He,too,
brings an excellent "track record” of several years ex­
perience in bank computer operations to our Corres­

Enjoy these benefits of Omaha
National Bank Computer Service:
1. Eliminate investment in costly bookkeeping
2. Lower your operating cost.
3. Have more time for your staff to perform other
4. Get overnight service.

pondent Bank Departm ent.
M ay we be of service? W rite or phone the Correspond­
ent Bank Departm ent tod ay— Area Code 4 0 2 -3 4 1 -0 1 0 0 .

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Nebraska News

president; J. Allan Mactier, director;
and Lloyd H. Mattson, Jr., director.
All the applicants are with the Omaha
National Bank.
Proposed capital of the new bank is
$500,000 and suggested names in order
of preference are (1) Dundee Omaha
National Bank, (2) Central Omaha
National Bank, and (3) Citizens Oma­
ha National Bank.



James A. Zimmerman, vice presi­
dent of The United States National
Bank, has been named head of the
bank’s marketing division, announced
bank President Edward AV. Lyman.
Mr. Zimmerman, 47, will continue in

commercial lend­
ing while assum­
ing the additional
s u p e r v i s o r y re­
s p o n s i b i l i t y for
the bank’s adver­
tising, bus i nes s
development and
public r el at i ons
whi c h c o mp o s e
j. a . z i m m e r m a n
^he marketing di­
A graduate of the University of
Omaha, Mr. Zimmerman has been as­
sociated with the U. S. National since
1940. He has worked in a number of
bank departments and has continued

to be active in the bank’s public rela­
tions and business development pro­
grams since serving as advertising
manager 13 years ago.



The Omaha National Bank and its
advertising agency, Holland Dreves
Arendt Poff, Inc., of Omaha, have
received the “National Junior Panel
Award for Advertising Excellence”
from the Junior Panel Outdoor Adver­
tising Association.

L. Peter Marr, 2nd v.p. and advertising
and public relations officer, Omaha Na­
tional bank, and Earl Katz, Holland
Dreves Arendt Poff, Inc., are shown with
junior panel award.

The award, according to L. Peter
Marr, second vice president of the
Omaha National Bank and advertis­
ing officer of the Omaha National
Bank, was for a junior panel advertis­
ing the bank’s new interest rates. The
panel used a checkerboard as a back­
ground and supported the theme “ It’s
Your Move.”

Congratulations to our many banker
friends in Nebraska on the occasion
of your state’s Centennial Year. It
has been our pleasure to serve your
needs in the Sioux City area for 71
of the past 100 years.

=t= *

Honesty as the best policy was paid
tribute last month as 280 children
gathered for the 20th Annual George
Washington Club party in Omaha.
The club, established by The Omaha
National Bank to “honor children who
display those qualities of honesty and
integrity which make a good citizen,
is made up of boys and girls up to
14 years of age who have found a
purse or billfold containing money
and have returned it to the owner or
some responsible citizen.
The club was started in 1947 and
has a current active membership of
about 280. A total of 854 other mem­
bers have reached the age of 15 and
are no longer eligible for active mem­
=t= *


John R. Lauritzen, president, First

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

National Bank of Omaha, told report­
ers last month that construction of a
new bank building on the old U. S.
Postoffice site at 16th and Dodge
Streets is being delayed because of
negotiations with hotel chain oper­
ators that are bogged down primarily
over the ballroom facilities to be pro­
Mr. Lauritzen said the bank wants


At First National Bank we put specialists like Bill Griggs
on the job when you decide to use our computers.

B ill Griggs is a System s Specialist.
W hen you tell one of our Correspondent bankers you want to
use our Computer Service, Bill will shortly be working in your
bank to establish in-bank data processing procedures.
W hen he’s through, you will
lished procedures which make
to process and prove demand
ment loans and for other bank

have a trained staff and estab­
it possible to use our Computer
deposit records, savings, install­
related tasks.

A sk your First National Correspondent banker to move you
into the Computer age soon.

Member Federal Deposit Insurance Corporation

A lw a ys the First to Serve You.
Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1967

Xebraska Investment Bien Kieet

been elected to the board of directors.
He has been with the bank for 20




Mrs. Floyd Davidson, 77, died re­
cently in Albuquerque, New Mexico.
She was the granddaughter of A. W.
Clarke, who founded the Banking
House of A. W. Clarke, now the Clarke
Bank. Her brother, Robert, later was
a president of the bank, which was
sold in recent months following his


OFFICERS for 1967-68 were elected at the recent annual meeting of the Nebraska In­
vestment Bankers Association in Omaha. Pictured above, from left, are: William J.
Raynor, G. H. Walker & Company, Omaha, 2nd v.p.; Evert M. Hunt, pres., First Nebraska
Securities, Inc., Lincoln, pres., and Don Anderson, v.p., Chiles & Co., Omaha, secy. Other
officers, not pictured, are 1st Vice President Herbert H. Davis, Jr., pres., Kirkpatrick,
Pettis, Smith, Polian, Inc., Omaha, and Treasurer Cliff R. Rahel, pres., J. Cliff Rah el
& Co., Omaha.

F. R. Kingsbury has been elected
president of the Bank of Dixon Coun- *
ty succeeding his father, C. A. Kings­
bury, who had served the bank as
chief executive office for several years.
Plans have also been announced to V s
erect a new building for the bank.
Completion is expected in late spring.
Sou th S io u x City

a hotel erected that will provide first
class ballroom facilities to set 1,000 to
1,200 persons, double present capacity
of any Omaha hotel. The hotel would
probably have 300 rooms, but most
hotel operators back off over the
needed size of the ballroom, which
they maintain would increase the cost
to room guests in the hotel to a great
Mr. Lauritzen said bank officials
and other civic leaders want a new
hotel with modern facilities to attract
large conventions to Omaha. The
hank would be housed in a high rise
office building and no problems stand
in the way of this building. The bank
wants the adjoining hotel to be erected
at the same time.
T w o B a n k in g B ills Passed

The Nebraska State Legislature has
passed two bills affecting Nebraska
The first permits the Governor to
appoint any banker of his choice as
director of banking. The current law,
passed several years ago, restricts the
Governor’s appointment to a national
banker or a person not associated
with a state bank. Under the new
law, the Governor may again appoint
a state banker to the post.
If a state banker is appointed, the
Governor has authority to personally
supervise examination of the bank
or banks with which the director of
banking is affiliated.
The second bill passed by the Leg­
islature permits state banks to own
stock in a computer center.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Tom Cummings, executive vice
president of the First National Bank,
has announced plans to develop drivein facilities at the bank. Tentative
plans call for completion of the fa­
cility in about three months.
G ran d Island

The Commercial National Bank last
month honored a bank employee for
his heroism. Dick D. Nietfeld was
presented with a $100 bond and a
plaque by president Bill Marshall.
Mr. Nietfeld’s act of heroism took
place when he dove into 40 feet of
water in Pier Lake to rescue a 5-year
old boy who had broken through the
ice. The boy, who couldn’t swim, was
revived after Mr. Nietfeld brought
him to shore.
H astings

E. H. Wood last month was pro­
moted from assistant vice president to
vice president of the City National
Bank, according to O. J. McDougal,
Jr., vice president.
New board members elected include
Vern C. Anderson, vice president of
Western Land Roller Co mpa ny ;
Thomas Creigh, Jr., president of
Kansas-Nebraska Natural Gas Com­
pany, Inc.; Paul Hohnstein, president
of Hastings Irrigation Pipe Company;
and LeRoy W. Thom, president of
T-L Irrigation Company.
O ’ N eill

Woodrow D. Nelena, assistant cash­
ier of the O’Neill National Bank, has


Roy Paradise, vice president of the
Dakota County State Bank in South
Sioux City, was recently chosen Boss
of the Year by the Jaycees.
H o n o r E dw in V an H o rn e

Edwin N. Van Horne has retired
twice but had no plans for a third y
time recently as he marked his six­
tieth anniversary in the banking
The celebration was at Eppley Air­
field when the Van Hornes arrived
from a month vacation in Phoenix,
Greeting the couple was a son, John,
and the staff of Van Horne Invest- **
ments, Inc. The senior Mr. Van
Horne is chairman and his son presi­
“ I began as a messenger and clerk vin my father’s bank, the Farmers Na­
tional Bank, in Pawnee City, Neb.,
on March 1, 1907,” Mr. Van Horne re­
The 77-year-old native Nebraskan
went on to serve as a Nebraska state
bank examiner, officer of the Ameri­
can National Bank in St. Joseph, Mo.,
president of the Continental National ^
Bank of Lincoln and executive vicepresident of the American National
Bank and Trust Company in Chicago.
The Chicago firm now is headed by
Mr. Van Horne’s son-in-law, Allen
Mr. Van Horne retired the first
time in 1954 as president at the Fed^
eral Land Bank in Omaha. He served
as State Director of Banking and re­
tired the second time.


W e ’re “ right in
the heart” of

W e couldn’t be closer to the business we serve.

Located for 80 years right

in the heart o f the Om aha Union Stockyards, w e’ve been a part and partner
in the grow th th a t’s made Omaha the world’s largest livestock m arket.
W hile we are specialists in serving the livestock interests, our experience is
not confined by any means to th at industry.

Our complete banking facilities

are used by an ever-grow ing clientele of individuals and businesses in the en­
tire Omaha area.
G etting to the heart o f banking problems
quickly and with expert, common sense is a
reputation we are proud to have earned.

During this, the Nebraska Centennial Year,
we’ve celebrated our 80th year by expanding
and modernizing our facilities. You are in­
vited to come in and see them.

so m m u si
s io c m n o s

s a n i:
Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis

Northwestern Banker, March, T967


L in co ln T o ta ls


Lincoln’s three downtown banks re­
ported bank clearings for February,
1967, totaled $49,742,825.
This compared with $51,902,324 for V
the same month in 1966.
N o rth Platte P r o m o tio n

retirement of seven long-time
directors of the National Bank of
Commerce has prompted the organi­
zation of a Past Directors Club of the
Byron Dunn will serve as first pres­
ident of the club and P. O. Southwick
is the new secretary. Both Mr. Dunn
and Mr. Southwick were board mem­
bers for 40 years.
NBC President Glenn Yaussi said
the unusual club means the advice
and counsel of these retired directors
will not be lost to the bank. As other
directors retire they will become mem­
bers of the club.
The 16 charter members and their
years of service:
William I. Aitken, attorney, 19531967.
Dr. Everett E. Angle, physician and
surgeon, 1940-1967.
R. E. Campbell, retailer, 1943-1964.
C. N. Caldwallader, retailer, 19401959.
Oscar L. Clarke, Jr., trust officer,
Wayne Cooper, investments, 19511966.
Byron Dunn, retired NBC president,
Charles Flansburg, attorney, 19571966.
Carl Ganz, former NBC executive
vice president, 1946-1967.
Albert A. Held, former NBC execu­
tive vice president, 1936-1967.
Otto H. Eiebers, former dairy own­
er, 1958-1963.
Gardner Moore, grocer, 1946-1967.

O. J. Shaw, oil and investments,


The Board of Directors of The First
National Bank of North Platt announced the appointment of Robert
M. Brown as an assistant cashier ef­
fective March 1. Mr. Brown will be
associated with the Small Loan Department of the Bank.
S id n ey

P. O. Southwick, president, First Na­

tional Bank, Friend, Neb., 1927-1967.
Charles W. Swingle, processor, 19511967.
B. A. Weil, rancher, 1957-1966.



Howard A. Chapin, vice president

and senior trust officer of the First
National Bank and Trust Company,
spoke last month at the First National
Bank of Fairbury agricultural forum.
His topic was Wills, Trusts and Taxes.
* * *
Thomas J. Vaughn, who has been in
the securities business since 1958, has
joined First Nebraska Securities, Inc.,
as account executive in charge of the
commodity department.
Robert D. Northrop has been ap­
pointed to direct the First National
Bank and Trust Company’s new
municipal bond department, President
Burnham Yates has announced.
The department was set up to en­
gage in the underwriting and distribu­
tion of general obligation bonds of
cities, counties, school districts and
other governmental subdivisions.
Yates said the increasing interest
in investing in municipal securities,
which are exempt from Federal in­
come tax, makes the addition of this
customer service desirable.
Mr. Northrop has been associated
with First Nebraska Securities, Inc.,
Lincoln, for several years, and most
recently has been assistant vice presi­
dent in the Omaha office.


B an ker R etires

George Barlow, a lifetime Cheyenne
County resident and banker since
1914, is retiring and plans to move to
Laguna Beach, Calif.
Now executive vice president of
the American National Bank at Sid- ^
ney which he joined in 1940, Mr. Barlow began his career at the First
State Bank of Lodgepole. He then
moved to the Farmers State Bank at
Sunol and later to the Dalton State
Bank, Dalton.
South S io u x City E lects

Dennis Clifton, was appointed cashier of the Dakota County State Bank
at South Sioux City at the annual
stockholder’s meeting.
Mr. Clifton, who came to the Dakota County Bank April 25, 1966 from
Norfolk as an assistant cashier, is a
native of Orchard.



D avid City O p e n H ouse

First National Bank, David City,
held open house in its newly re­
modeled and expanded facilities on
Friday, March 10.


P ro m o te C ub Scouts

The First National Bank, Wayne,
is promoting a program in connec­
tion with the Cub Scouts. The bank
is giving each boy who joins the
scouts a bank account of $1.00. It is
the first plan of its type in the area,
and scouting officials plan to give it
national publicity.



B ank W o m e n M eet

The annual meeting of the Ne­
braska group of the National Asso- ^
ciation of Bank Women will be held
at the Holiday Inn in Kearney on
April 27-29. Mrs. Lela Heisey, presi­
dent of the Citizens State Bank in
Carleton is chairman of the group.

SEVEN1MEN retired from tlie Natl. Bank of Commerce in Lincoln recently. Pictured
with Pres. Glenn Yaussi (fourth from left) are: Dr. Everett E. Angle, Albert A. Held,
Charles W. Swingle, Mr. Yaussi, Gardner Moore, Carl Ganz, William Aitken and P. O.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis





Bob Johnson

is the newest member of our Correspondent Bank Department. He is a
native of Lincoln and a graduate of the University of Nebraska. Before joining our staff last
October, Bob spent five years as an active and successful farm operator in northwest Mis­
souri and four years in various phases of banking. When you meet Bob, you ’ll like him.
Y ou’ll find him to be a man of action who is exceptionally well-qualified to provide you
with the prompt and efficient service and careful attention to detail : s_ |¿¡J F I R S T N A T I □ N A L B A N K
that has long been a tradition a,t | [J | | S . T r u s t C o m p a n y o f L i n c o l n
M em ber: F.D.I.C
the “ First”
12th & N St. * Lincoln, Nebraska

Robert W.

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Nebraska News


BOND . . .

(Continued from page 36)
Depending on market conditions we sometimes resort
to our short municipals that have sizable gains and then
reinvest in longer maturities at bargain prices. This was
especially true this past year, and our newly acquired
bonds have gone into our portfolio at prices that have
not been witnessed for 30 years!
Control of Earnings

If initiated on the proper basis, a portfolio of
S i discount bonds will provide increasing unreal­
ized discount and capital appreciation. Later this year
we will decide just how far we want to go in cashing in
this unrealized appreciation.

Capital Growth

At some point in the management of a portfolio such as ours, management can rely entire­
ly on the investment portfolio for the capital needed for
expanding deposits. From the end of 1957 to the pres­
ent, capital, surplus and undivided profits at the National
Boulevard increased from $414 million to almost $9 mil­
lion and various reserves from $1 million to over $4 mil­
lion. All this was accomplished without selling any addi­


S IG N A L S . . .

(Continued from page 39)
bank within a bank and starting an
operation that leads always to aston­
ishing totals until finally the balloon
breaks and an entire community is
Doesn’t happen often, you say?
Too damned often and often enough
to make the field of the $1,000,000 ex­
cess fidelity, which is only reached
after the loss exceeds your primary
Bankers Blanket Bond, a complete
and total loser for the whole of the
insurance book countrywide.
Often enough to cause some very
fine companies state side, and some
truly professional Underwriters at
Lloyd’s, after 30 or 40 years give up
on insuring American banks.
And until science and the telephone
company designs and perfects an in­
strument that gives you each day a
true and automatic reading of how
each of your staff is standing the pri­
vate stresses and strains of their pri­
vate problems, you bad better create
the proper preventive conditions in
your bank and throughout all of your
operations. Even this will not pre­
vent all fidelity losses, but you will
uncover them before the amounts in­
volved blow the roof off the bank and
you out of your lovely upholstered
leather chair.
Now, lest you think I am here to
bewail our fate as being unkind, let
me assure you we want only a normal
risk. We are not seeking to insure
only pig-iron under water against a
fire hazard.
To change the scene, if you wish us
to pay and assume your “trade losses”
Northwestern Banker, March, Ì967
Federal Reserve Bank of St. Louis

tional stock or issuing capital notes. The cash dividend
has remained constant at $2 a share on 50,000 shares in
1957 versus 125,000 now outstanding.
The rapid pace of our capital growth is attributed to
the building of capital with 75-cent dollars rather than 52cent dollars obtained through ordinary bank income
Carry Bonds at Cost

Even though Regulation “F” permits the accrual of dis­
counts by banks on a long-term capital gains basis, we
know the market itself does not remain on the accrual
line. The bank using this method is either overstating
its assets or foregoing an actual capital gain greater than
the one assumed. It has been our experience that car­
rying the bonds at cost is much more satisfactory and
Because of our convincing performance in a critical
year for the bond market, the soundness of our port­
folio counsel to correspondent banks has been demon­
strated in rather dramatic fashion. For the same reason,
this advice has been even more valuable than in a nor­
mal year. In 1967, as changes take place in the national
economy, there probably will be a rebuilding of securi­
ties portfolios. Again, we believe that this kind of pro­
gram will continue to be profitable.—End.

—and if we take your “trade risks”
why should we not be entitled to
your trade profits?
Think if you will for a moment. If
this nation does enter a decline and
a recession, what strange things, as
respects dishonesty and forgery and
security, will come out of the wood­
work of some of your loan portfolios
when the marginal credit risk, the
unsound business venture, presents
you with their inability to pay.
How, for example, would you like
an insurance program where your
bank may be required to self-insure
the first $50,000 of any loss, or in the
case of forgery in connection with any
loan papers find itself indemnified by
insurance carriers only to the extent
of 50 per cent of the loss?
You see, in many insurance areas
the carriers of the risk have correctly
learned that where first dollar indem­
nity or other cover is used as a crutch,
or as a substitute for proper proce­
dures and operations, the red ink real­
ly flows on insurance ledgers.
I state to you today that unless
common sense prevails and banking
returns, at least to some degree, to
the old standards of vigilance, safety
and proper control of operations in
the not too distant future, you will be
sharing part of your losses or under­
writing yourselves.
Mr. Livingston, in the talk which I
previously quoted, also said that in a
period of continued boom and pros­
perity, rigid principles of integrity
and high sense of responsibility may
also seem a trifle old-fashioned. Bar­
ron’s, in their lead editorial, “Liquid­
ity Preferred,” as appearing in their
January 2 issue, said, “As financial

binges go, the latest one reached truly
historic proportions. It began more
than five years ago when an admin­
istration that had vowed to get the
country moving again floated off on a
sea of red ink.” At the end of the
editorial it raised the somber ques­
tion, “How long the new trend will
last, or how deep it will cut, remains
to be seen. What seems clear is that
calculations and forecasts which failed
to take account of it are apt to go
awry. The U. S. last year had a brush
with financial disaster. For some
time to come it is bound to play safe.”
It seems to me that it is up to all
of us—the banking industry and the
insurance industry—to think together
and act together for the best interests
of the public. We are not a loggerheads with you, we are your partners.
But we can’t continue to be the lis­
tening partner at the short end of the
stick if you do not take every precau­
tion to protect your deposits, stock­
holders and the bank’s loss ratio on
your insurance covers.
We join with you in the fervent
hope that self-discipline will take the
place of—and make unnecessary—dis­
cipline from the outside. The finan­
cial world is only too well acquainted
with the heavy hand of the regulatory
Now, in closing, may I firmly state
that I am convinced that when the
clear light of understanding and rea­
son is focused properly on this com­
mon problem, you — each of you — as
banking professionals—can swing this
pendulum back where it belongs and
bank insurance business can once
again be both a prestige and a pre­
ferred risk to Underwriters.



in ok ôu q M n t . . .

b u L w h cd L dü& A . îL m e n iL ?
is th e new sign fo r the
to p service you alw ays g e t fro m
y o u r C a p ita l C ity C o rre s p o n d e n t

N atio nal B ank of C o m m e rc e

r o x c
Federal Reserve Bank of St. Louis



Lincoln, N e bf a s ka 68 501

Northwestern Banker, March, 1967


Bankers Trust
Board Chairman,
is Des Moines

John Ruan, Chairm an of the Board o f D i­

surance fo r the trucking industry in 44

rectors and of the Executive Com m ittee

states. He also is president of Ruan L ea s­
ing Company.

of Bankers T rust, started in business with
one truck in 1933 and has built 5 Success­

M r. Ruan is a m em ber of the Boards of

ful enterprises in Des Moines.


He is president o f Ruan Transport Cor­

U n iversity,

poration, which operates more than 2,000


m otor carrier units throughout the coun­



Carriers Insurance, o f which he is

founder and president, specializes in in­


Y .M .C .A .,

Com m ittee









A ch ieve­

He has served on Bankers Trust Board of
Directors since 1960.

“ Des M oines’ Largest Locally Owned Bank
Celebrating our fiftieth year in business.
It is ou r p lea sure to s e r v e y o u on a n y banking n eed.
Just write or call . . . Homer Jensen or Gordon Dodge


6th Ave. and Locust St., DES MOINES, IOWA 50309
PHONE 515-283-2421
Fedei’al Reserve System— Federal Deposit Insurance Corporation
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis



Io w a




A t G ro u p


Des Moines
Des Moines

M eetin gs

as secretary.”
Mr. Smith referred to the article in
a recent issue of the N orthwestern
B anker , authored by A. H. Haakenson,
chairman, Austin State Bank, Austin,
Minn., under the title, “How Do You
Rate in Your Community Relations?”
He listed the self-examination ques­
tions a bank president should ask him­
self, then described the three-way ap­
proach Mr. Haakenson suggested for
the executive in order to put his bank
in a proper position: 1. He must be
alert to recognize opportunities and
establish good follow-up. 2. He must
be thoroughly knowledgeable about
the advantages and shortcomings of
his community. 3. He must be aggres­
sive enough to attract interest to his
Jones, cashier, Henry County Savings
own institution.
Bank, Mount Pleasant. Officers for
Mr. Smith urged bank executives to
both groups will take office after the
free themselves of routine detail wher­
annual convention of the Iowa Bank­
ever possible to devote time to seek
ers Association this fall.
out improvement and adaptability of
Speaking before both groups were: ideas for the community. This, in it­
Dale C. Smith, president, Iowa Bank­
self, would help achieve the knowlers Association, and vice president,
edgeability suggested in point 2. He
Central National Bank and Trust Com­
commended many Iowa bankers for
pany, Des Moines; John Chrystal, state
being alert to new business possibili­
superintendent of banks, and Arthur
ties in the state in recent years, point­
C. Lindquist, secretary, Iowa Bankers
ing to the big expansion in manufac­
Association. Highlights of their re­
turing and industrial production that
marks follow:
has taken place in the state so that
President Dale C. Smith sounded a
Iowa now enjoys a balance of slightly
two-fold call to action: (1) For bank­
better than 50 per cent production
ers to take an interest in developing
from non-farm oriented business.
better community relations and (2) to
He announced that the Iowa Bank­
become directly involved in politics,
ers Association has appointed a new
both in the selection and support of
committee called “ Industrial Expan­
good candidates and in personally run­
sion Committee” with Wm. W. Sumning for offices wherever possible.
merwill, president, Iowa State Bank
In his opening remarks, Mr. Smith
and Trust Company, Iowa City, as
paid high tribute to Arthur Lindquist
for doing a “tremendous job” since
In discussing political participation,
taking over as secretary of the IBA
Mr. Smith said it is a poor excuse to
late last year upon the retirement of
“use the bank’s welfare as a reason
Frank Warner, who had been secre­
(not to participate) because in actual
tary for 50 years. Mr. Smith said,
practice, just the opposite is nearly
“He has already displayed an unusual­
always true — the politically active
ly fine feeling and aptitude for the
position. We are indeed most fortu­ GROUP MEETINGS . . .
nate to have Arthur Lindquist serving
(Turn to page 94, please)

President Smith Urges Action
fit Coinmnnitg and in Polities
weather in the midUNSEASONAL
60’s brought another registration


in excess of 850 bankers and wives
for the Group 1 meeting of the Iowa
Bankers Association in Sioux City.
Group 11, meeting in Burlington, also
survived the ravages of winter, draw­
ing a crowd of nearly 500.
E. W. Claussen, chairman of Group
1 and president of the Farmers State
Bank, Schleswig, joined with Stanley
W. Evans, president, Live Stock Na­
tional Bank, Sioux City, the president
of the Sioux City Bankers Association,
in conducting the sessions for Group

Earl W. Rodibaugh, executtive vice
president, First National Bank, Fairfield, and chairman of Group 11, co­
operated with the officials of the three
Burlington banks to conduct sessions
. for Group 11.
New officers were elected at both
groups. New chairman for Group 1
is P. J. Juffer, president, Security
State Bank, Ireton, and new secretary
is Len C. Lamar, vice president and
cashier, First Trust & Savings Bank,
Elected new chairman of Group 11
^ was Thomas H. Huston, executive vice
president, Columbus Junction State
Bank. New secretary is Denis T.

LEFT— Dale C. Smith, pres., Iowa Bankers Assn, and v.p., Cen­
tral Natl. B&T, Des Moines; John Chrystal, Iowa supt. of banks;
W. L. Baggs, v.p. of the IBA and v.p., Hancock County Natl.,
Garner. RIGHT—William B. Hummer, partner, Wayne Hummer
Federal Reserve Bank of St. Louis

& Co., Chicago; Jack Bell, Associated Press, Washington, D.C.,
and E. W. Claussen, pres., Farmers State, Schleswig, and retiring
chmn., Gr. 1.
Northwestern Banker, March, 1967


Iowa News


CroupI in Sioux


LEFT—Harry Van Sandt, branch mgr., Recordak Corp., Omaha;
A. H. Brüning, v.p., Mapleton T&S, and Don Keller, sales rep.,
Recordak, Omaha. BIGHT— Fred Pfaff, v.p., U. S. Cheek Book

Co., Omaha; Jim Bierwirth, Community State, Whiting; Mrs.
Pfaff, and Fred Douglas, v.p., The Omaha Natl., Omaha.

LEFT— C. W. Ralston, auditor, Toy Natl., Sioux City; Len Moel­
ler, asst, secy., St. Paul F&M, St. Paul, who retired Feb. 28
after representing the company 31 years in Iowa and other
states; Robert B. Hunt, res. adjuster, Sioux City, and Ellwood

E. Linder, spec, agt., St. Paul, both with St. Paul F&M. BIGHT
— Dick Taylor, v.p., 1st Natl., Sioux City; Max Kiernan, v.p.,
Alton Savings, Alton, and E. R. Manuel, cashier, George State,

LEFT— E. C. Ted Thompson, Jr., pres., Security Natl., Sioux
City; Everett Kennedy, 2nd v.p., Chase Manhattan, New York,
and Loren Anderson, pres., Cherokee State. BIGHT— Dennis E.

Gano, a.c., and Ray Erlandson, v.p., both Cherokee State, with
Ed Newell, v.p., Live Stock Natl., Sioux City.


LEFT—Bill Haney, a.c., Iowa Savings, Coon Rapids; Jerry Nel­
son, sr. v.p., Iowa-Des Moines Natl., Des Moines; J. L. Lillibridge, exec, v.p., Burke State, Burke, S. D., and Howard M.
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

Logan, pres., 1st T&S, Moville. tcit+tlx— iiooero n. irei, pres.,
Commercial State, Wagner, S. D.; Don Mills, Burroughs Corp.,
Sioux City, and G. S. Smith, v.p., Commercial State, Wagner.


LEFT—O. D. Hansen, ehmn., Bank of Union County, Elk Point,
S. D.i Herb Echtemieyer, sr, v.p., The Omaha Natl., Omaha,
and Bill Heimerman, sr. v.p., Northwestern Natl., Sioux Falls.

RIGHT— W. G-. Meinen, v.p., Lake City State Bank; Jerry
Wrage, ag. rep., Toy Natl., Sioux City, and Bill Edgecomb, v.p.,
1st Natl. B&T, Lincoln.

LEFT—Bemie Miller, a.v.p., and Fred Cummings, v.p., both
with Drovers Natl., Chicago, and Tom Cannon, v.p., Commerce
Trust, Kansas City. CENTER— O. E. Fristad, vice ehmn., 1st
Natl., Le Mars, and Dick Weyrauch, a.v.p., 1st Natl., Minne-

apolis. RIGHT— Rodney B. Amlie, exec, v.p., Commercial State,
Pocahontas; Bill Aldrich, a.v.p., American Natl. B&T, Chicago,
and John Van Horne, Pres., Van Horne Investments, Ine.,

LEFT—Tom Horn, sr. v.p., Security Natl., Sioux City; Bob
Cuttell, v.p., Everly State, and Gene Hagen, a.v.p., Security

Natl., Sioux City. RIGHT—Carleton C. Van Dyke, pres., Toy
Natl., Sioux City, and John Chrystal, Iowa supt, of banks.

LEFT- L, S. Wood, pres., Farmers Natl., Webster City; Jay
Bordewiek, a.v.p., U. S. Natl., Omaha, and Leon Langemeier,
pres., 1st Natl., Lyons, Nebr. RIGHT—John Raymond, a.v.p.,

1st Natl., St. Paul; Joe Grant, pres., 1st Natl., Sioux City, and
Dave Shem, v.p., 1st Natl., St. Paul,
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Iowa News

Pictures Taken at

firoaBarling t


NEW OFFICERS elected by Gr. 11, shown at left, are Chmn.,
Thomas H. Huston, exec, v.p., Columbus Junction St. Bk., and
Secy., Denis T. Jones, cash., Henry County Savings Bank, Mt.
Pleasant. CENTER— Mr. and Mrs.' E. A. Hayes of Mt. Pleasant
congratulate Mr. and Mrs. M. G. Addicks of Donnellson on Mr.


Addicks retirement from the Citizens St. Bk., Donnellson after
51 years with the bank. RIGHT—Ward R. Hatter, v.p., Iowa
County Sav. Bk., Marengo, visits “ 303” hospitality room run
by Fred Cummings, v.p., Drovers Natl. Bk., Chicago, for many


LEFT—Charles W. Eastburn, pres., Iowa St. Bk. & Tr. Co.,
Fairfield, and Homer Jensen, v.p., Bankers Tr. Co., Des Moines.
CENTER—Dale Kelley, exec, v.p., Natl. Bk. of Burlington, and

Robert P. Kline, v.p., Northern Tr. Co., Chicago. RIGHT—
Henry Byers, v.p., Bankers Service Co., Des Moines, and Horace A
Smith, rep., Scarborough & Company, Chicago.



LEFT— Frank Johnson, dir., First Tr. & Sav. Bk., Davenport,
and L. W. Broulik, v.p., The Merchants Natl. Bk., Cedar Rapids.
Mr. Johnson has attended over 40 annual Gr. 11 meetings.
CENTER—R. J. Nachazel, v.p., Farmers & Merchants Bank &
Tr., Burlington, and Art Lindquist, secy., Iowa Bankers Assn.,

Des Moines, admire unique Gr. 11 program teaturing picture
of Ed Eber sole of Keokuk on cover. RIGHT— Holmes Foster,
dep. supt,, Iowa Banking Dept,, Des Moines, and Christy F.
Armstrong, sr. v.p., American Tr. & Sav. Bk., Dubuque.

LEFT— Ed Braack, sr. v.p., Davenport Bk. & Tr. Co., — C. Hodge, v.p., gen. counsel & secy., Federal Reserve Bk., Chi­
cago. CENTER—J. C. Blackford, pres., Union Bk. & Tr. Co.,
Ottumwa, and Gr. 10 chmn., and Vincent P. Cullen, pres., Natl.

Bk. of Burlington. RIGHT—Earl Rodibaugh, exec, v.p., First
Natl. Bk., Fairfield, and outgoing chmn. of Gr. 11, and Art
Frey, v.p., Continental Illinois Natl. Bk. & Tr. Co., Chicago.

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Tri-State Bankers Direct Their
Attention to Am erican Trust
Christy Armstrong, Leo Schlueter
and Leo Kane know the Tri-State Ter­
ritory and are here to see that you re­
ceive personal and sp eed y attention.
Their knowledge, along with A m e rica n
Trust's complete banking facilities and
convenient location, allows banks in this
area to benefit from the fastest, most
efficient correspondent banking service
available. W e w elcom e your calls re­
garding excess loans and other banking
transactions. Call 582-1841.
Federal Reserve Bank of St. Louis




"A t Your Service" at the . . .

american trust
an d s a v in g s b a n k

N orthw estern Banker, March, 1967


Iowa News

G R O U P M E E T IN G S . . .

(Continued from page 89)
banker gains additional stature and
business.” He urged bankers to en­
courage good people to run for office
at the city and county level of govern­
ment; be active in the party of choice
to help pick far enough in advance
for good training the kind of men and
women who will be worthy state legisltors; and continue this interest at the
U. S. Congressional level.
He reminded his audience of the
four active Iowa bank officers who
are presently state legislators and
urged that others consider running
for the state legislature in their re­
spective areas. He further urged that:
“The head man in every bank take
a real, active interest in politics. He
must study the issues—current ones
and upcoming ones. Discuss good gov­
ernment and politics with associates.
Route material to them. Encourage
their interest in politics. Call on state
legislators when in session. Work
personally in campaigns, raise money,
be treasurer, be a campaign chair­
man. Run for office yourself! En­
courage your associates—let them run
for office. Give them a leave of ab­
sence, if necessary; bring them back,
if they lose.”
He closed by suggesting that larger
banks consider having a permanent
civil affairs officer and that bank offi­
cers support financially the political
campaigns with their own funds.
Superintendent John Chrystal ex­
pressed appreciation to Iowa banks
for their acceptance of support of the
direct verification program which has
made this a success, and for their ac­
ceptance of the necessary raise in ex­
amination fees. He said banks and
banking need a new image and “we
hope this is developing.”
Mr. Chrystal noted that demand de­
posits in dollars were less at 1966
year-end than at 1965 year-end; time
deposits were $150 million higher in
the same period; one year ago when
the furor over interest paid the saver
arose, 438 banks were paying in ex­
cess of 4 per cent, and today that fig­
ure is probably more than 450 banks;
total deposits in state banks are up
$133 million over a year ago; loans
went up $205 million in the same pe­
riod; the loan/deposit ratio is in ex­
cess of 51 per cent and “where will it
be next fall with higher costs to agri­
culture and loans to cover them?
With a high ratio of loans to deposits,
who is going to cut the savings inter­
est rate when that money is needed?”
Mr. Chrystal said his department is
working with a committee of bankers
Horthwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

KEY MEN at Gr. 11 meeting in Burling­
ton included Dr. Paul McCracken, speaker
from Univ. of Michigan, and Dale C.
Smith, pres., Iowa Bankers Assn., and v.p.
Central Natl. Bk. & Tr. Co., Des Moines.

to update the banking code of Iowa
and it is hoped this work can be pre­
sented to the 1969 legislature.
He also referred to the fine work
being done by Secretary Lindquist
and commended him for the excellent
cooperation between the IBA office
and the state superintendent’s office.
Secretary Arthur Lindquist, in his
initial appearance before an IBA as­
sembly since taking office, said his
philosophy of office will be to do those
things as secretary that are in the
best interests of depositors, banks and
the people of the state of Iowa. Mr.
Lindquist said certain changes in pro­
cedure are being instituted because
each person’s way of doing things is
different from another, but the serv­
ice of the office would be maintained
at a high level. He referred to pos­
sible changes in the manner of budg­
eting for committees and the need to
study the possibility of succession by
having an incoming president for the
association each year. His further re­
marks were devoted to discussing de­
tails of several legislative bills now

P. J. Juffer, new chmn. of Gr. 1 and pres.,
Security State, Ireton, and Len C. Lamar,
new secy, of Gr. 1 and v.p. & cash., 1st
T&S, Remsen.

being considered in the Iowa Capitol.
Dr. Paul W. McCracken, University
of Michigan, Ann Arbor, told the
bankers of Group 11 that the Ameri­
can economy is in an early stage of
a decade of one of the most rapid rates
of growth in history, comparable only
to the growth rate experienced in the
early 1900’s.
He admitted that we have “a flat
spot in the economy” at present but
that there is a better than even chance
that we can “slog through the current
situation,” and that we will be on an
upswing by late this year.
Dr. McCracken blamed the current
“receding economy” on mismanage­
ment of economic policy in mid-1965,
and stated that in late 1965 when we
moved back to the zone of full em­
ployment we should have pursued a
line of less expansion on money man­
agement. He indicated that the Fed
policy was too lenient at that time
bringing undue pressures on the level
of prices. When the Federal budget
moved from a surplus to a deficit in
1965, the economy needed an avertive when it got a shot of adrenalin,
Dr. McCracken stated. Then, by the
third quarter of 1966, restraint was ap­
plied very hard, putting the American
economy through a whipcracker.
He concluded by warning bankers
“not to be disturbed by the short term
wobbles— but to get set for bigger
and better things ahead.”
Four additional speakers appeared on
the Group 1 program, and highlights
of their talks follow:
Jack Bell, head of the Associated
Press staff in the U. S. Senate. Dis­
cussing “What’s Going on in Wash­
ington?” Mr. Bell said President John­
son now admits he has some big prob­
lems after seeing his “can do” image
tarnished in the last election. Conse­
quently, is now asking and not tell­
ing, hoping to get more cooperation.
The “new” Johnson talks more con­
servatively and doesn’t mention the
Great Society, but wait until 1968, Mr.
Bell stated, and he’ll be running again
on a platform offering something to
Mr. Bell opined that chances for the
proposed 6 per cent surtax being en­
acted depend on what happens in the
next six months. Referring to Sena­
tor R o b e r t Kennedy , he added,
“What’s Bobby Kennedy up to? The
Presidency—not in 1968, but in 1972,
unless for some reason LBJ doesn’t
want to run. He’s better off remain­
ing as a Senator than as vice presi­
dent under LBJ. By 1972, Kennedy

(Turn to page 103, please)


Men from
La Salle

Big enough to provide all of the correspondent service you need . . .
yet organized to give you the personal attention so important
to a lasting, mutually satisfactory association . . . that’s the
LaSalle National Bank.
In addition, your La Salle representative is well informed as to the
particular needs and conditions of your area. And he is backed by an
experienced staff of trust, investment and bond as well as banking
experts ready to assist in serving you.
Whether your needs are for excess loans, operating procedures,
increasing business or improving profitability, your man from
LaSalle will be glad to cooperate. If you don ’t already know him
write and we will have him arrange a meeting right away.

135 South L a S a lle Street« Chicago, Illinois 60690 «Telephone: 312-ST 2-5200
M em ber Federal D eposit Insurance Corporation

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Iowa News




as a total banking center, permitting
the customer to move quickly from
one area to another. With two sets of
stairs, four elevators, and a special
within-the-bank customer convenience
elevator acting as a core for the four
banking floors, service is the keynote.
The lower level contains the vaults
and many rooms for customers’ use,
where they can transact all of their
safe deposit box business in private.




Main Banking Floor

Encased on three sides in glass is
the main banking floor. It features
the main banking lobby with its in­
dividual private teller windows, the
Installment Loan Department, Trust
Department, Savings Department and
Business Development Department.
Capacious employee lounges and
cafeteria, along with the bank’s com­
puters and other electronic processing
equipment are located on the second
The third floor accommodates the
credit department, the commercial
loan department, the correspondent
banking department, the board of di­
rectors’ room and the president’s
office, occupied by B. C. Grangaard,
chairman and president.
Eleven moraine locust trees have
been planted in pre-arranged areas of
the sidewalks on the west and north
sides of the building and a green
hedge borders the third floor sun ter­
race of the building. White walks and

NEW HOME for Central National Bank and Trust Company.

T HAS a 9-to-5 population larger
than that with which the 1960
credits Altoona, Carlisle, Dal­
las Center, or hundreds of other Iowa
At 14 stories and a cost of more
than $4,000,000, it has 76,000 square
feet of glass; it has its own flag, its
own rooftop terrace, its own subway
tunnel and enough electrical conduit
to light a light bulb nearly 30 miles
It is the Central National Bank
building the glass tower that has
changed the downtown Des Moines
Occupies Three Floors

The new Central National Bank,
now occupying the first three floors
and a large area of the lower level,
has opened its doors for business in
its new location at Locust and Sixth
Gerald E. Daley, Des Moines’s rep­
resentative for Collins, Tuttle and
Company, Inc., builders, developers
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis

and owners of the new building, said
that the new building is already 93
per cent leased, with committments on
hand for another 6 per cent.
The building, containing 182,500
square feet of floor space, is a rein­
forced concrete structure using ap­
proximately 7000 cubic yards of con­
crete and 650 tons of reinforcing steel.
The exterior west and north eleva­
tions are aluminum and glass curtain
wall construction of a type called
black duranodic. Eighteen hundred
individual panes of glass are in the
curtain wall.
The building is 178 feet tall, in­
cluding the penthouse. The huge let­
ter “ C”s, facing in three directions
and standing a total of another 29 feet
in height, are atop the penthouse. The
tunnel will eventually lead to 160
parking spaces featuring a self-park
system when the old Central National
building is replaced at 5th and Locust.
The three-and-a-half floors of the
bank have been scientifically planned

HOSTESSES for the Central National
Bank & Trust open house celebrations are
on floor, left to right: Marge McCarthy,
Paulette Chance, Jane Fuson, Diane Gibbs.
On stairs, front row, left to right: Sheryl
Schmidt, Pam Minard. Second, left to
right: Jeanette Greimann, Florence Hraha.
Third row, left to right: Judy Willis,
Kathy Wildin. Top row, left to right:
Bethene Wildin, Juanita Bray.







I owa N e w s


crushed red stone are features of the
landscaped area, and white wrought
iron outdoor furniture will be used
during the summer months on the
Inside, the building includes more
than two miles of partitions, 8500
flourescent light tubes and an air con­
ditioning system rated at approximate­
ly 700 tons of cooling . . . that uses 75
tons of air conditioning ductwork.
The building is equipped with four
Westinghouse Mark III elevators
which travel at 350 feet per minute.
Contemporary Art

Mr. B. C. Grangaard, president and
chairman of Central National Bank
and Trust Company, explains the
prominent presence of contemporary
works of art in the bank.
The focal point of this accent on
art is the 8 by 37 foot mural by Mr.
and Mrs. Jules Kirschenbaum and
Cornells Ruhtenberg, which hangs on
the south wall of the main bank lobby.
Mr. Kirschenbaum is artist-in-resi­
dence at the Des Moines Art Center.
The bank also commissioned wellknown Des Moines wildlife artist
Maynard Reece to create an original
oil painting which hangs in the board
of directors’ room. It is a waterfowl
scene in a typical Iowa landscape.
In the past 72 years, Central Na-

HSTTERIOR of Central National’s new lobby shows spacious customer area, customdesigned, semi-private teller stations with marble sides, and mural on wall in back­
ground commissioned by the bank for this new building.

tional Bank and Trust Company of
Des Moines has moved less than three
blocks, but has grown by well over
163 million dollars.
The bank moved to its former build­
ing on Fifth Avenue, south of Locust,
in December of 1913. It was in
this building that the N orthwestern
B anker staff officed for many years.




Key men at ribbon-cutting cere­
monies for Central National Bank and
Trust Company in Des Moines are
shown, left to right, B. C. Grangaard.
chairman and president of bank; Gov­
ernor Harold Hughes, and Des Moines
Mayor George C. Whitmer.

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Iow a


L oa n s. T im e D ep osits In crea se
deposits in the 567 state chartered banks in Iowa gained 4.38 per
cent from December 31, 1965, to December 31, 1966, while loans were

increasing by 12.74 per cent in the same period. The report was released just
seven weeks after year-end by John H. Chrystal, superintendent of banking.
Perhaps the most notable change was in time deposits, which were up 11.67
per cent during the year, while demand deposits lost ground. Deposit and
loan comparisons were listed as follows:
Demand Deposits
Time Deposits
Total Deposits
Loans and Discounts

For a complete report, including investments, deposits of political subvisions,
capital funds, etc., write State Superintendent of Banking, Des Moines.
N ew O fficer N a m e d

Philip Brecihas been named an
assistant cashier of the Council Bluffs
Savings Bank, according to a report
from T h o m a s
W hi t s o n , assist­
ant cashier.
Mr. Breci joined
t h e b a n k on
January 16 after
serving with the
N o r t h s i d e Bank
in Omaha for
more than seven
years. He is a
native of Omaha
and has also been
with the Omaha National Bank and
the Livestock National Bank.
He worked in operations and install­
ment lending while with the Northside Bank.
T o u r C o m p u te r C enter

Interesting tours of Kerndt Broth­
ers Savings Bank’s new interior and
it’s computer facilities were enjoyed



last month by area bankers, custom­
ers, and friends of the bank.
Over 100 bankers and their wives
were shown the machines and meth­
ods used by the bank to process its
work on a 1440 IBM Computer. The
bank has been processing its check
and deposit “Acld-punch-card” system
since last September. The computer
center is located across the street
from the bank in the Lansing Com­
pany, Inc. offices and time is leased
on an after hour basis by the bank.
New W illia m s b u r g P resid en t

Obert L. Larson has been named
president and chief executive officer
of the Farmers Trust and Savings
Bank of Williamsburg, according to
R. A. Elwood, chairman.
Mr. Larson succeeds longtime presi­
dent O. E. Jones who has announced
his resignation as chief executive
officer and board member. He will
continue to serve as consultant to the
board of directors.
Replacing Mr. Jones on the board
is Harold B. Martin, cashier.


W e have registered with us experienced bank executives — men who
are qualified to fill the position of Managing Officer, Commercial and
Installment Loan Officers, Operations Manager, Agricultural Repre­
sentative, Cashier, Assistant Cashier and/or someone to head your
Insurance Department. W rite and tell us of your needs.

Bankers Service

1301 Register and Tribune Building
Telephone 515-244-3113


Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis





D ial F in an ce E lects


Heading a list of promotions an­
nounced recently by Ellis I. Levitt,
chairman of Dial Finance Company,
was the advancement of Richard S. -V
Levitt to the position of executive
vice president. Formerly financial
vice president and treasurer, Mr. Le­
vitt serves on the boards of the IowaDes Moines National Bank and Simp­
son College.
Other promotions include: Sol M.
Davidson, from assistant vice presi­
dent to vice president and director of ^
operations; Lloyd J. Halsey, from
assistant vice president to vice presi­
dent and director of operations; Ray­
mond E. Stipp, from assistant vice
president to vice president and direc­
tor of public relations.
New officers are Marvine E. Mazie,
named treasurer; Robert L. Benneventi, named secretary; Richard J.
Brinkman, named assistant vice presi­
dent; and T. Joseph Wahrer, to assist­
ant vice president.

B u rlin g to n B ank A u to m a te s

The Burlington Bank and Trust
Company is planning to set up a data
center which will handle the data
processing work of several banks as r
well as its own.
The operation will be built around
a National Cash Register 315 system
scheduled for delivery next fall. Bur- *
lington Bank and Trust will be the
first financial institution in South­
eastern Iowa to install an automated
computer system using MICR (Mag- A
netic Ink Character Recognition).
In addition to serving other banks
in its area, all situated within a 60mile radius of Burlington, the bank’s ^
computer center will process for com­
mercial concerns and for farmers in
the region. Input to the system will
be by punched paper tape, in addition
to MICR at 1200 documents per ~
Equipment on order includes five
magnetic tape handlers and a high­
speed press. The installation will be
displayed to the passing public in an
attractive “showroom.”
Credit L ife R egulation s

Credit life rates would be regulated
by the Iowa Insurance Commissioner
under bills filed recently in the Iowa
legislature. Interested parties should
obtain copies of House File 45 and
Senate File 188. Past Iowa legis­
latures have refused to grant the addi­
tional regulatory powers asked in the
current bills, feeling that the action
was brought about by alleged loan
shark abuses in southern states, not
prevalent in Iowa.




Iow a

F ed L ow ers R eserves

The Federal Reserve acted to in­
crease credit supplies by a two-stage
reduction in reserves that member
banks must keep idle behind savings
and certain other accounts. Effective
early in March, the Reserve Board
said, the present 4 per cent reserve re­
quirement on savings deposits and
Christmas and vacation club accounts,
as well as on the first $5 million of
other time deposits, will drop to 3.5
per cent. Effective March 16, the re­
quirement will be cut to 3 per cent.
The two reductions, the board esti­
mated. will increase cash available to
the banks by $850 million.

cent in February.
“As we have an average matu­
rity of 110 days on these certifi­
cates, we can expect a gradual
decline in the effective rate over
the next several months,” he said.

Also on the cost side, the average
rate paid for Federal funds has de­
clined from 5.40 per cent in December
to 4.96 per cent in February and
Euro-dollar rates paid by the bank
dipped from 7.15 per cent in the last
quarter of 1966 to a current rate of
5.70 per cent for the same maturity.
The First of Chicago executive pre­
dicted that volume bank loans in
major cities will average about 3-4
per cent above last year.



“Before you gather from this that
money will be just as tight this year
as last, let me say that I assume that
the Federal Reserve’s recent relaxa­
tion of monetary stringency will be
carried even further before there is
any reversal and that, as a conse­
quence, though total bank loans out­
standing this year may be at a higher
level than last year, we are not likely
to go through an equivalent of the
stress that occurred last year.”
More companies, facing reduced in­
terest rates, will go into the capital
market than did last year, he said,
while some bank loan commitments
obtained last year on a “just in case”
basis will not be taken down.

C riticizes R ate D ro p

The recent sharp decline in inter­
est rates “was more precipitate that
was warranted by any reduction in
the demand for credit or any increase
in the supply of funds,” Gaylord A.
Freeman, Jr., vice chairman, First Na­
tional Bank, Chicago, said recently.
He suggests that rates will remain
fairly stable for the next two months
and then may ease further about mid­
year on a combination of poor first
quarter earnings reports, increased
liquidity after the April income tax
date, continued decline in retail sales
and a topping out of business ex­
penditures for plant and equipment.
“However, later in the year we ex­
pect renewed demand and rising
rates,” Mr. Freeman said during a
presentation before the New York
Society of Security Analysts.
“As a consequence, 1 would guess
that this year the prime rate should
average above 5% per cent; in fact,
probably close to or slightly above
the average for last year of 5.63 per
He declared: “although the prime
rate may be little changed from last
year, the average rate on bank loans
should be higher this year because we
start from a higher level.”
As an example, he noted that First
National’s loans in 1966 averaged a
return of 5.60 per cent, while for the
January of this year, the average was
5.95 per cent.
Describing the bank’s earnings out­
look in 1967 as “optimistic,” Mr. Free­
man also noted that the average rate
paid by the bank on new certificates
of deposits declined from 5% per cent
as recently as January, to 5 Vs per

W e re proud to have been commissioned to
furnish the beautiful new C entral
N ational Bank.

O ur decorating specialists are ready to provide
you and your bank with the same expert in terior
planning and decorating service.

S t o r e y K e n w o r t hy
business inferiors • stationers



309 locust


des moines, i o w a



Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Iow a


/H an Spring B a n k C on feren ce
RELIMINARY plans are now
being made for the 46th Annual
Spring Banking Conference of the
Iowa Bankers Association on Thurs­
day, March 30 at Hotel Kirkwood.
The meeting is held in conjunction
with the 27th annual meeting of the
Iowa Junior Bankers Association.
Topics will include: Criminal At­
tacks On Banks; Analysis of Financial
Statements; Agricultural and Indus­
trial Expansion in Iowa; American
Institute of Banking Progress In
Iowa; A Discussion on Bank Public
Relations, and a Panel Discussion on
the Uniform Commercial Code.
IBA officers and members of the
legislative committee will present a
special legislative report at the noon
Heading the activities will be Paul
L. Klingseis, assistant vice president,
First National Bank, Ames, who is
president of the Federation of County
Bankers, and Earl N. Vermeer, assist­
ant cashier, Marion County State
Bank, Pella, who is president of the
Iowa Junior Bankers Association.

retary for monetary affairs; Vice Pres­
ident Hubert M. Humphrey and How­
ard K. Smith, ABC news analyst and
commentator, who acted as moderator.
Jay E. Tone, Jr., Des Moines, vol­
unteer state chairman for Iowa, at­
tended the national televised meeting
in Washington.
A goal of 29,000 new payroll savers
has been set for Iowa. The over-all
national goal is 2.5 million new pay­
roll savers.
C h e ro k ee P ro m o tio n

Dennis Gano has been elected as an
assistant cashier of the Cherokee State
E lected T o G rin n e ll B oard

Edward J. Fordyce has been elected
assistant cashier of the Mount Vernon
Bank and Trust Company. Other offi­
cers and directors have been re­

Donald C. Nebergall, vice president,
Poweshiek Coun­
ty National Bank,
G r inne l l, h a s
been elected as a
m e m b e r of the
bo ar d of d i r e c­
tors. He has been
w i t h the b a n k
since 1959, and is
a g r a d u a t e of
Iowa State Uni­
versity, Ames. He
D. C. N E B E R G A L L
is also a graduate
of the Graduate School of Banking at
the University of Wisconsin.

N a m e d T o C reston B oard

R etires A t P ostville

M o u n t V e rn o n P ro m o tio n

Bernard D. Duben, cashier of the
Iowa State Savings Bank, Creston,
has been elected to the board of direc­
A n n o u n c e “ F re e d o m Shares”
W it h 4 . 7 4 % K ate

Volunteers in the Treasury Depart­
ment’s “ Share in Freedom” campaign
for U. S. Savings Bonds gathered last
month in Des Moines—and in 33 addi­
tional cities—to organize their cam­
paigns and to view a special, live,
c l o s e d - c i r c u i t television broadcast
emanating from Washington, D. C.
President Lyndon B. Johnson, speak­
ing from the White House, announced
a companion product to the Series E
Bonds—new Freedom Shares which
will be available only to regular buy­
ers of U. S. Savings Bonds on the
Payroll Savi ngs or Bond-A-Month
Plan. Interest rate for the Freedom
Shares has been set at 4.74 per cent.
Also participating in the telecast
were Reno Odlin, past president of
the American Bankers Association;
Henry Fowler, secretary of the treas­
ury; Frederick L. Deming, under sec­
Northwestern Banker, March, T967
Federal Reserve Bank of St. Louis

Louis L. Hill has retired as a direc­
tor of the Postville State Bank after
completing 15 years of service, accord­
ing to W. A. Kneeland, president. Mr.
Hill’s future plans include traveling
and spending several months in the
southern states.
Joins C lin to n N ation al

George Kruse, who for the past
eight years has been assistant control­
ler of Curtis Companies, Inc., has
joined the staff of the Clinton Nation­
al Bank as manager of the data proc­
essing department.
R etires A t D o n n e lls o n

M. G. Addicks has retired as presi­
dent and director of the Citizens State
Bank, effective March 1, after serving
51 years in Iowa banking. The past
25 years have been at Donnellson. He
and Mrs. Addicks attended the recent
Group 11 meeting in Burlington, and
their pictures appear with others
taken there.
He came to Donnellson in 1943 to
be associated with Walter T. Robinson
when the bank’s totals were around
$1 million. (The last statement of the

bank’s condition as of December 31, ^
1966, showed totals of over $6 mil­
S io u x City P ro m o tio n s

First National Bank in Sioux City
has announced the promotions of
three staff members.
Dwain Stinger, who joined the bank
as a teller in 1957, was advanced from
auditor to assistant cashier; Loren P.
Miller, with the bank since 1961, from
data processing manager to assistant
cashier, and Vernon C. Roberts, with
the bank since 1962 as a member of
the auditing department, to auditor.



Fort D o d g e B anks A d o p t
M in im u m B alan ce P lans

New minimum balance check plans
were announced in Fort Dodge recent­
ly, giving area banks a new topic for
discussion in addition to the subject 1V
of 5 per cent interest on Certificates
of Deposit.
First National Bank offered resi­
dents an opportunity to eliminate ^
charges on their checking accounts if
they maintained a minimum balance
of $300. State Bank in Fort Dodge
adopted the “222 Plan” giving its cus­
tomers a chance to eliminate service 're­
charges on checking accounts if a min­
imum balance of $222 was maintained.
At last report, Union Trust & Savings
Bank had not adopted a special mini- ^
mum in line with the two other banks
in Fort Dodge.
New A k r o n E x ecu tiv e

Elmer F. Timson, Jr., has been elected executive vice president of the
A k r o n Savi ngs
Bank, according
to an announcement from Gor­
don L. Mennen,
Mr. Timson has
b e e n executive
vice president of
the Jones County
S t a t e B a n k in
Murdo, S. D. PreE. F. T IM S O N , JR.
vious to joining
the Murdo bank, he was associated
with the Security State Bank in In­
dependence, Iowa, and was active in
cattle feeding and farming in that




O p e n M arsh alltow n F acility

The new parking lot office at 1904
South Center Street in Marshalltown
has been opened by the Fidelity Sav­
ings Bank. Offering two drive-up win­
dows and walk-in facilities, the new
unit is open from 9 a.m. to 2 p.m. and
9 a.m. until noon on Saturdays.



O shaloosn






A m e ric a ’s L a rg e st
U n d e rw rite rs o f
In s titu tio n a l Bonds

w ith

o n s t r u c t io n




C pleted on a parking lot office for
the Mahaska State Bank in Oskaloosa.

Erected on a lot located diagonally
across the intersection from the main
bank building, the new facility is a
prefabricated building from LeFebure
Corporation, Cedar Rapids. It fea­
tures two drive-up windows and one
walk-up window in a vestibule. Over­
all size of the building is 10 by 32 feet.
A tla n tic B an k Change

Dale Ball has been elected president
of W h i t n e y Corporation, Atlantic,
which is the majority owner of Whit­
ney Loan and Trust Company, Atlan­
tic. Mr. Ball is president of the First
National Bank, Council Bluffs. He
and his associates recently acquired
majority ownership of Whitney Cor­

H arry G . W ils o n

Funeral services were held last
month for Harry G. Wilson, former
senior vice presi­
dent of the IowaDes Moines Na-*
tion Bank, Des
Mr. Wilson re­
tired in 1962 after
serving the bank
for 46 years. He
started his career
wi th the Iowa
National Bank in
H. G. W I L S O N
1916, and served
as vice president and cashier from
1940 through 1960.
M ark H a n sen

Winfield G. Mayne, cashier, Mont­
gomery County National Bank, Red
Oak, has been presented the distin­
guished service award by the Red
Oak Junior Chamber of Commerce.
Mr. Mayne serves as president of the
Southwest Iowa Bankers Association.

Funeral services were held last
month for Mark Hansen, 11-year-old
son of Mr. and Mrs. Oliver Hansen.
Death was attributed to a hunting ac­
Mr. Hansen is president of the Lib­
erty Trust and Savings Bank in Du­
rant, and a candidate for president of
the Iowa Bankers Association in the
fall of 1967.

H eads Scout Unit

C hange A t D e n iso n

H o n o r R ed O a k B an k er

Mel Shanda, vice president and cash­
ier of the Home State Bank, Jefferson,
will head the Raccoon District of the
Prairie Gold Area Scout Council.
N ew H o p k in to n D ire cto r

Thomas C. Dunlap, president, Slater
State Bank, has been elected a direc­
tor of the Citizens State Bank, Hop­
H o n o r Cascade B a n k e r

Jerry Volk, assistant cashier of the
Cascade State Bank, has been elected
president of the Cascade Merchants

Joseph G. Vaage, cashier, First Na­
tional Bank, has acquired the addi­
tional title of vice president. Allan F.
Nash has been elected to the board,
filling the vacancy caused by the
death of Floyd E. Page.

R ig h t n o w w e are a b le to
o ffe r e x c e p tio n a l re tu rn s
w h e n fu n d s are in v e s te d
in o u r B o n d issues.
R e a d y m a rk e ta b ility , an d
se ria l m a tu ritie s to f it th e
n e e d s o f a n y p o rtfo lio .

C u rre n t y ie ld s ra n g e fro m

5V2 to

6 1/4% d e p e n d in g o n

B o n d issue, m a tu ritie s ,
6 m o n th s to 1 5 years.
O N S H O R T T E R M it w ill
p a y y o u to in v e s tig a te o u r
C o m m e rc ia l Paper.
M a tu ritie s ra n g e fro m
1 m o n th to 9 m o n th s .
Y ie ld s are h ig h e r th a n m o s t
o th e r s h o rt te rm in v e s tm e n t.

C o n ta c t o u r n e a re s t o ffic e

West Bend, Wisconsin 53095

D en v er B ank T o B uild

Construction will start this spring
on a new 51 by 72 foot building for
the Denver Savings Bank. H. F. Tank
Construction Company of New Hamp­
ton will handle the general contract
work. Robert DeVoe of Cedar Falls
is the architect. Completion is antici­
pated next fall.

B R A N C H O F F IC E S :
S a n F ra n c isc o , N e w Y o rk , C h ic a g o ,
S t. L o u is , T o le d o , M in n e a p o lis,
M em p h is, D u b u q u e , M ilw a u k e e ,
A p p le to n , G reen B a y , M a d iso n ,
F o n d du L a c , Fort A tk in so n , W a u sa u

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Iow a





Wheatland building which doubled *
the office space, and continued growth
of total assets which were in excess
of $6% million at year-end.
H o n o r Feeds G ro v e G ro u p

NEW BUILDING occupied by Cambridge State Bank.

A FTER serving the people of Cambridge for nearly 40 years in the
same location, the Cambridge State
Bank has moved into a modern new
building. The bank, which applied for
its charter December 12, 1927, has
been in the same building up to this
time, according to H. F. Moore, vice
president and cashier.
The new structure, located on the
main street of the town, is 36 by 74
feet. It has five teller units and a
drive-up window. Two private offices
and a lounge area are features of the
new structure. Shill and Hanson of
Ames were the contractors.
N a tio n a l E q u ity L ife Elects

Marlyn Watermiller was recently
elected secretary and treasurer of Na­
tional Equity Life Insurance Company
of Des Moines. Mr. Watermiller
joined the company in 1965 and was
formerly an accountant with National
Travelers Life Company, Des Moines.
Other officers are Leonard T. Heinen, president, and James F. McCor­
mick, vice president and agency direc­
4-H C o n trib u tio n s
By 5 6 Iowa B anks

The Iowa and National 4-H Founda­
tions are $4,035 richer due to recent
contributions of 56 Iowa banks.
This amount will be shared by two
Foundations, according to G. A. Lineweaver, secretary of the Iowa 4-H
Foundation, and Thomas Smith, presi­
dent, First National Bank, Perry.
The Iowa share will be used to fur­
ther develop the Iowa 4-H Camping
Center near Madrid. Last year more
than 8,000 4-H members and leaders
from 83 counties camped at the cen­
The national share will be used to
help meet expenses incurred in sev­
eral 4-H citizenship short courses held
Northwestern Banker, March, J967
Federal Reserve Bank of St. Louis

at the National Foundation in Wash­
ington, D. C. Each year about 4,000
4-H’ers enroll in these short courses.
More than 300 members come from
Thirty-one of the 56 contributing
banks gave $100 or more and will be
recognized by the National 4-H Foun­
dation as members of the “Silver
Clover Club.”
E n tertain In d ia n o la 4-H

4 H leaders were entertained re­
cently by the Peoples Trust & Savings
Bank, Indianola, at an annual recog­
nition dinner. Max Milo Mills, state
senator from Marshalltown, was the
featured speaker.
Joins B elle P la in e Bank

John Lawlor has joined the Citizens
State Bank, Belle Plaine, as farm rep­
resentative. He has been manager of
the Farmers 4-H Co-op there. He is a
graduate of Iowa State University,

Three directors of the Teeds Grove
Savings Bank have been honored at a
party for serving 50 years or more as
members of the board of directors.
They are: Henry Harmsen (51
years); W. F. Wessel (50 years), and
W. H. Jargo (50 years).
Mr. Harmsen resigned this year and
was replaced on the board by his son,
Leo F. Harmsen. The senior Mr.
Harmsen was given a lifetime honor­
ary directorship. Mr. Wessel is president and W. H. Jargo is vice president.
All three were presented engraved



Join Sloan Bank

Wayne F. Smith has joined the
Sloan State Bank as executive vice
president and cashier. He is a native
of Waverly, Neb.
Mr. Smith is a graduate of the Uni­
versity of Nebraska with a Bachelor’s
Degree in agriculture. He has been
employed most recently by the Na- V
tioanal Bank of Commerce, Lincoln,
and is well-known to bankers in Ne­

Iowa B on d Sales
E x ceed A n im a l Q u ota

Jay E. Tone, Jr., volunteer state
chairman of the Savings Bonds program, announced that Iowa exceeded
its 1966 quota of sales of Series E and
H Savings Bonds by more than $3
With December sales of $8,359,475,
the state had total sales for the year
of $113,851,480 for 103 per cent of its
$110,400,000 goal.



Join s O a k la n d Bank

Lewis W. Ross, Jr., has joined the
Citizens State Bank, Oakland, and will
serve as an assistant cashier.
Graduating from the University of
Colorado in 1953, he served as a naval
officer and later as an examiner for
the Iowa Banking Department. In
1963, he joined the investment firm of
J. Cliff Rahel & Company, Omaha,
serving as co-manager in Council
R ep ort W h ea tla n d P rogress

The First Trust and Savings Bank,
Wheatland, has transferred $100,000
from undivided profits to surplus,
making a total surplus of $300,000.
Capital is $150,000.
Highlights of the year’s operations
were completion of an addition to the

New C layton O fficers

Robert T. Rehmke, assistant cashier,
Central State Bank, Elkader, is the
new president of the Clayton County
Bankers Association for 1967.
Elected to assist Mr. Rehmke were:
Vice president, Joe DeBoest, assistant
cashier, Union Bank & Trust Company, Strawberry Point (who has
since resigned at Strawberry Point),
and secretary-treasurer, LeRoy C.
Derby, president, Union State Bank.



W a te rlo o Increase

National Bank of Waterloo has in­
creased its capital to $1,406,000 and its
surplus to $1,600,000. Annual meeting
changes were reported in the Febru­
ary issue of the N orthwestern B ank er .


Iowa News

i'red it
For A m es.

Eugene Smith, president, Warren County
and Trust, Ridianola.
A !o 2 1 -2 2Donald Doolittle, farmer, Blairsburg.

sity and the Iowa Bankers Association through its agri­
cultural committee, will be held Tuesday and Wednesday,
March 21-22, according to Carl H. Haesemeyer, IBA Ag
Chairman, and president, Union Trust and Savings Bank,
Stanwood, and Herbert B. Howell, chairman, Agricultural
Credit Conference and I.S.U. economist.
All sessions will be held in the Memorial Union on the
University Campus in Ames. The program follows:

Wednesday, March 22


Tuesday, March 21

9:15 Registration—Coffee and doughnuts.
10:00 Welcome—-Charles Donhowe, assistant director, Co­
operative Extension Service, Iowa State Univer­
“ Iowa Agriculture, 1980”—Herbert B. Howell, econ­
omist, Iowa State University.
“ Farm Management Decisions, 1967”—Everett G.
Stoneberg, economist, Iowa State University.
1:30 “ Iowa State Center for Industrial Research and
Service”—Waldo W. Wegner, center director, Iowa
State University.
“ Corn and Soybean Production”—E. R. Duncan,
agronomist, Iowa State University.
“ Problems in Financing Today’s Agriculture” —
Robert D. Patten, vice president, Monticello State
Bank, Monticello.
John M. Shanda, vice president, Home State Bank,

(Continued from page 94)
will be 47 and Humphrey 61. Ken­
nedy will have all the college and
high school students of today as his
followers and of voting age.”
He feels the Republican party is dis­
jointed and has no special leader now.
Further, he emphasized, “the Republi­
can candidate won’t matter if LB.T
succeeds in phasing out the Viet Nam
War. LBJ will be elected.”
William B. Hummer, partner, Wayne
Hummer & Company, Chicago, spoke
on Federal Reserve and Treasury Pol­
icies, and his remarks are briefed in
a separate article in the special invest­
ment section of this issue.
B. Gene Crewdson, ag director for
the Upper Midwest Research and De­
velopment Council, Minneapolis, spoke
on “ Farmers in the Future.” His talk
centered around a description of typi­
cal farm owners and operators in fu­
ture decades and their advanced tech­
niques for farming, as well as greatly
changed habits of living in urban cen­
ters while doing their work on the
Edward McFaul, humorist-philos­
opher, was the dinner speaker and

“World Population, Food Needs and Iowa Agricul­
ture”—Wallace E. Ogg, economist, Iowa State Uni­
“Using Market Futures in My Farm Business”—
Max Bailey, farmer, Ames; Roger Fisher, farmer,
Grand Junction.
Workshop Sessions—Concurrent:
Resource Personnel
Iowa State University
“ Land Prices and Land Contracts”—W. G. Murray,
L. J. Bodensteiner.
“Financing Beef Cow Enterprises”—W. G. Zmolek,
Errol Petersen, Donald Gee.
“Financing Machinery and Facilities”—H. B. How­
ell, James Hughes.
“Using Market Futures”—Gene Futrell, Marvin
Skadberg, L. G. Krai.
“Computer Use in Farm Business Records and
Analysis”—E. G. Stoneberg, W. J. Turner.

12:30 Luncheon.
“Reorganization of State Governments” — Carl
Hamilton, chairman, Advisory Committee on Gov­
ernmental Reorganization, State of Iowa; director,
University Relations, Iowa State University.

had a most appropriate title listed in
advance on the program. It was “How
Confused Can You Get?” On his flight
from Chicago to Sioux City, Mr. McFaul’s plane stopped first in Sioux
Falls. He was dozing, but awoke
when he heard the city called, got off
the plane and didn’t discover until too
late that he was in Sioux Falls, in­
stead of Sioux City. He had to take




6:30 Banquet.
Music—Iowa State University department of mu­
“Land Prices—Present and Future”—John Tim­
mons, economist, Iowa State University.

1967 Annual Agricultural Credit Conference spon­
sored by the Extension Service of Iowa State Univer­

G R O U P M E E T IN G S . . .



a subsequent flight, but arrived in
time for the banquet. He drew a
hearty laugh when he told the inci­
dent on himself. In his relaxing, hu­
morous speech, Mr. McFaul gave this
bit of advice:
“Thoughts unspoken may fall back
But God himself can’t stop them once
they’re said!”— End

a n

If you are in te re ste d in ch a n g in g positions o r in e n te rin g th e banking
fie ld , we have re q u isitio n s fo r men to fill th e fo llo w in g po sitio ns -—
President, Executive V ice President, C ashier, M a n a g e r — bank's insur­
ance d e p a rtm e n t and bank office s in Iowa and W ise., Trust O ffic e r in
$20,000,000 Iowa bank, as well as others. W r it e us fo r an A p p lic a tio n
Form — no ch a rg e to you.

Bankers Service

1301 Register and Tribune Building
Telephone SIS— 244-3113

Banks a n d




Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


ANKERS Trust Company has an­
nounced that their new Merle
Hay Plaza Office will open on March
13. Carl E. Thorpe, assistant cashier,
will be manager of the new facility.
According to Wayne Edsall, direc­
tor of marketing, a reception for busi­
ness men in the northwest Des Moines
area will be held on March 8 and 9
prior to the actual opening. Ribbon
cutting ceremonies are scheduled for
Saturday, March 11.
The public will be invited to tour
the facility on Saturday and Sunday,
March 11 and 12. First official day of
business will be Monday, March 13.
Open house activities are scheduled
for the complete month of March with
a grand drawing for a variety of
prizes scheduled for April 3.
* * *
Dale C. Smith, president of the Iowa
Bankers Association and vice presi­
dent of the Central National Bank of
Des Moines, and Arthur E. Eindquist,
Jr., secretary of the Iowa Bankers
Association, have announced that
Wendell B. Gibson has been appointed
general counsel of the IBA on a full
time basis.
Mr. Gibson, for many years asso­
ciated with the law firm of Gibson,
Stewart and Garrett in Des Moines, is

well known in the legal profession
among bankers over the state.
Mr. Gibson is a
member of the
advisory commit­
tee to the Su­
preme Court of
Iowa, author of
a publication of
the A m e r i c a n
Law Institute, a
former secretary
of the Iowa State
Bar Association
W . B. G IB SO N
and the National
Conference of Judicial Councils.
* * *
Wayne Edsall has been appointed
director of marketing for Bankers
Trust Company. He was formerly in
the mortgage loan department of
Equitable of Iowa.
* =i= *
Neal A. Sands, president, and J.
Locke Macomber, vice president, Val­
ley Bank and Trust Company, last
month attended the ABA mid-Winter
Trust Conference in New York City.


ASSOCIATION are shown at LEFT: Thomas C. O’Neil, Dean
Witter & Co., Des Moines, 1st v.p.; Norman Conway, Sr., Conway
Brothers-First of Iowa Corp., Des Moines, pres.; and Robert J.
Kirke, Shaw-McDermott & Company, Des Moines, 2nd v.p.
RIGHT: Newly elected members of the board of governors are:
Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis



The regional office for National Fi­
delity Life of Kansas City is now in
new quarters at 2313 Rocklyn Drive,
Des Moines.

Charles Gustaveson heads the office
and supervises the five-state area con­
sisting of Iowa, Nebraska, South Da­
kota, North Dakota and Minnesota.
* * *
The annual meeting of the Iowa
Corporate Fiduciaries will be held
May 16-17 at Hotel Savery in Des
Moines, according to J. Locke Mac­
omber, vice president and trust officer
of the Valley Bank and Trust Com­
pany, Des Moines, and president of
the group.
Theme for the 1967 annual meeting
will be “Living Trusts.” Key speak­
ers will include Joe D. Young, vice
president and trust officer, Central Na­
tional Bank and Trust Company, Des
Moines, and Richard W. Carey, trust
officer, Iowa-Des Moines Nat i onal
Bank, Des Moines.
Buys E ld o ra B an k

Controlling interest in the First Na­
tional Bank of Eldora, with its office
in Steamboat Rock, was purchased
last month by Roger A. Jensen of
Eldora. The purchase was made from
Morris Stephens, president, and David
Taylor, executive vice president, First
Federal State Bank, Des Moines.
Mr. Jensen, formerly cashier, was
elected president of the bank; William
Tietz of Eldora was elected chairman
of the board, and C. O. Rubow, also of
Eldora, was elected to the board.
Other additions to the board include
Mr. Jensen’s father, A. J. Jensen,
West Bend, and his brother-in-law,
Carl Turicchi, Jr., Williams. Continu­
ing on the board are A. P. Travisono,
Eldora; A. E. Luiken and Claus B.
Janssen, Steamboat Rock, and Mr.
Mr. Luiken, formerly chairman,
was named vice chairman of the
board. Other officers are Mr. Janssen
and Mrs. Doris K. Ruppelt, vice presi­
dents; Anna Doolaard, cashier, and
Wayne E. Norris, assistant cashier.

Jack Sparks, Sparks & Co.; T. C. Henderson, T. C. Henderson
& Co.; R. G-. Dickinson, R. G. Dickinson & Co.; and H. G. Carney,
Neu and Company, all of Des Moines. These men were elected
at the group’s annual meeting last mnoth in Des Moines. It was
decided to hold the 1968 meeting on February 22nd (Washing­
ton’s Birthday), and to plan a full day’s meeting and program.


Iow a

O eil

O utils Suintes Fu rn iers


OUGHTON State Bank Days”
were held in Red Oak recently,
and a highlight of the week-long event
was a “ Salute to Agriculture” held for
an overflow crowd at the Red Oak
Armory, according to Paul D. Dunlap.
The program was designed for
southwest Iowa farmers. Featured
speakers were: Galen Graham of the
St. Joseph Stockyards; Hal Batten,
management c o n s u l t a n t from Des
Moines; P. A. Mack, agricultural offi­
cer from Harris Trust & Savings
Bank, Chicago, and H. Roe Bartle, for­
mer mayor of Kansas City.
Other well-known pe r s on al it i es
brought to Red Oak for the occasion
were Betty Furness, noted TV per­
former, and Miss Barbara Pendleton,
vice president, Grand Avenue Bank
and Trust Company, Kansas City. A
unique display of old-fashioned and
new mechanical coin banks was shown
by James B. Nelson of Fairfield.
Throughout the week, area residents
registered at the bank to become “Mil­
lionaire for a Day” to win a day’s in­
terest on $1 million.

ly and simultaneously
The company said last December
that an EDS On June-Real Time Com­
puter system was scheduled at that
time for delivery in March.
D e co ra h P ro m o tio n s

Alvin Renaas has been advanced
from vice president to exedutive vice
president by the
D e co r ah S t a t e
Bank, according
to President W.
P. Ronan.
In other pro­
motions made at
the annual meet­
ing recently, Ju­
lian M o e was
e l ec te d cashier.
He had served as
A. S. R E N A A S
an assistant cashier. W. D. Wilier was advanced to
assistant vice president.



can w ork with
you on your
“ overlines”

Bill Rickert
A s s is t a n t
V ic e P r e s id e n t

E x ecu tiv e Data
O ut o f E scrow

Executive Data Systems, Inc., Cedar
Rapids, organized a year ago to pro­
vide data processing services, initially
to hanks and hospitals, has completed
the sale of its first 100,000 shares of
stock to Iowans at $5 a share, and
funds held in escrow by the First Na­
tional Bank, Marion, have been re­
The firm started providing “in­
terim” service early in the winter,
using initial capital of $99,000 pro­
vided by organizers to install an IBM
.1401 computer system at that time.
Mr. Rittger said the firm intends
to use a centrally located computer
complex, to which remote customersusers are linked by telegraph or tele­
phone lines.
The system will be capable of pro­
viding instant or pre-timed service—
receiving, storing and replying to dif­
ferent customer inquiries automatical­


ABOUT 250 bank women from eastern
Iowa were guests of Merchants Natl. Bank,
Cedar Rapids, last month at an automation
Guests reviewed the most recent bank
bookkeeping techniques and data process­
ing procedures, touring the bank.
Entertained at a luncheon, the women
were treated to a talk by Mrs. Maurice
Ford, a.c., Mechanicsville Savings Bank,
on how her bank made the transition to
an automated bookkeeping system. She is
shown here with James Coquillette, MNB
pres., and John Mangold, MNB v.p. in
charge of the correspondent bank dept.

Write or call collect

Area Code 319

Willis Crees
F a rm R e p re s e n ta t iv e



------------------------ .

PHONE 235-0331


(Area Code 319)

F e d e ra l D e p o s it In s u r a n c e C o rp o ra tio n
F e d e ra l R e s e rv e S y s te m

Confidential Consulting Service
Merchants National Bank Building
Cedar Rapids, Iowa

Northwestern Banker, March, J967
Federal Reserve Bank of St. Louis


Iow a


M a son

C ity lim ili


FREE ADVICE is offered M. O. Hall, pres., Citizens Sav. Bk., Hanlontown, by (left to
right) Herb and Spencer Ollenburg of Hancock Co. Natl. Bk., Garner, and Roger Chris­
tianson, Farmers Sav. Bk., Joice.

HALL, cashier, Citizens
Savings Bank, Han lo n to wn ,
proved he was a bowler as well as a
banker last month during the First
National Bank’s correspondent party
for area bankers in Mason City.
One of the day’s events was a howl­
ing tourney, and Mr. Hall took the
traveling trophy for the second year
in a row with a 248 score. Following
the bowling, the Mason City bank en­
tertained 130 guests, representing
about 30 area banks, with a social
hour and dinner. A program of pro­
fessional entertainment concluded the

MARCH, 1967



Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


C ro ss, K ir k , C o .........................................................105


M e rc h a n ts M u tu a l B o n d in g C o ................... 52
M e rc h a n ts N a tio n a l B a n k .............................
M id la n d N a tio n a l B a n k — M in n e a p o li s .. 61
M in n e s o ta C o m m e rc ia l M e n ’s A s s n . . . . 28
M o r r is s e y & Co., In c ........................................... 48
N a tio n a l B a n k o f C o m m e rc e — L i n c o l n .. 87
N a tio n a l B a n k of W a t e r lo o ..........................105
N o rth e rn T r u s t C o m p a n y B a n k ...............
O m ah a N a tio n a l B a n k



P h illip s, H o te l ........................................................ 54
P io n e e r H i-B r e d C orn C o................................. 49
Q u a il & C o m p a n y .............................................. 28
R o y a l B a n k o f C a n a d a ..................................... 63
St. P a u l In s u ra n c e C o m p a n ie s ................. 50
S c a rb o r o u g h & C o m p a n y ..............................
S c h im m e l H o te ls ................................................. 54
S e c u rity F ir s t N a tio n a l B a n k
— L o s A n g e le s ................................................... 71
S h a w , M c D e r m o tt & C o.................................... 46
S ou th O m ah a S to c k y a rd s N a tl. B a n k . . 83
S tu d ley, S h u p ert T r u s t In v . C o u n c il . . . 10
S to r e y K e n w o r th y C o m p a n y ...................... 99
T a lc o tt, J am es, In c ................................................
T o y N a tio n a l B a n k — S io u x C ity ............... 97
U n ite d S ta te s C h eck B o o k C o m p a n y . . . 55
U. S. N a tio n a l B a n k — O m a h a ...................... 76
W e s te r n -S o u th e r n L ife In s. C o................... 14
W h it e -P h illi p s Co., In c ...................................... 42
Z ie g le r , B. C., & C o............................................... 101

1 8 8 2 ................

s u p p l i e r to t h e




F a r m B u s in e s s C o u n cil .................................. 52
F a r m e r s M u tu a l H a il In su ra n c e Co. . . 53
F ig g e , R e g in a ld , A s s o c ia te s ....................... 105
F ir s t N a tio n a l B a n k — D e n v e r .................... 68
F ir s t N a tio n a l B a n k — O m ah a .................... 81
F ir s t N a tio n a l B a n k — St. P a u l ................. 58
F ir s t N a tio n a l B a n k and
T r u s t C o m p a n y — L in c o ln ......................... 85
F ir s t N a tio n a l C ity B a n k — N e w Y o r k . . 21

L a S a lle N a tio n a l B a n k ..................................
L a w re n c e C o m p a n y ............................................
L iv e S tock N a tio n a l B a n k — S io u x C it y .

A c o r n P rinting- C o m p a n y ............................ 106
A ll i s o n -W i lli a m s C o m p a n y ........................... 62
A m e r ic a n N a tio n a l B a n k and
T r u s t C o m p a n y — C h ic a g o ........................ 27
A m e r ic a n T r. and S av. B k .— D u b u q u e .. 93
A s c o t H o u s e ........................................................... 29
B a n k B u ild in g and E q u ip . C o rp .............. 7, 8
B a n k e r s S e rv ic e C o rp o r a tio n .......... 98, 103
B a n k e r s T r u s t C o.— D es M oin e s ............... 88
B a n k o f A m e r ic a ................................................. 32
B a n k of M o n tr e a l .............................................. 74
D e c k e r & C o w n ie , In c ....................................... 48
B eh, C a rle to n D ., C o........................................... 44
C e n tra l B a n k an d T r u s t C o.— D e n v e r . . 72
C e n tra l N a tio n a l B a n k and
T r u s t C o m p a n y — D e s M oin e s ............... 24
C e n tra l S ta te s H e a lth & L ife C o..................109



lo w a - D e s M o in e s N a tio n a l B a n k . . 43, 110
Io w a L e g a l B la n k & P rin tin g C o ............... 106



D a v e n p o rt, F . E ., & C o................................. 84,
D e L u x e C h eck P rin te rs , In c o rp o ra te d .
D ro v e rs N a tio n a l B a n k ........................... 12,
E a s tm a n K o d a k Co.— B u s in e s s
S y s te m s M a r k e ts D iv is io n ......................

H a r r is T r u s t and S a v in g s B a n k ............... 19
H o lid a y M o to r H o te l ....................................... 26
H y -L i n e P o u ltr y F a r m s ................................ 23


Manager, Insurance Agency in
$5,000,000 Iowa bank. Salary plus
insurance earnings.
Bankers Service Corporation
1301 Register & Tribune Building
Des Moines, Iowa 50309
Phone 515-244-3113

C h ase M a n h a tta n B a n k .................................. 11
C h em ic a l B a n k N e w Y o r k T r u s t ............... 47
C h ile s & C o m p a n y .............................................. 78
C o m m e rce T r u s t C o.— K a n s a s C ity . . . . 17
C o n tin e n ta l Illin o is N a tio n a l B a n k
and T r u s t C o m p a n y ............................. 56, 57
C o n w a y B r o th e r s — F ir s t o f Io w a C o rp .. 44
C u rtis 1000 In c .........................................................106


lO O O

IN C .

1 0 0 0 U n iv e rs ity A v e . • St. Paul, M in n . 5 5 1 0 4


N ew Itili h ! in if fo r

It involves a relearning of basic eco­
nomic history. That is, government
agencies which attempt to make a
“profit” on such activities as transfer­
ring funds from one market to an­
other do so at the expense of the
areas, institutions and taxpayers of
the former and benefit the latter.
Effect of Funds Transfer


NEW BUILDING- for Cambridge State Bank is shown here. Due to a transposition of
pictures, building shown on page 102 is of First American Natl. Bk., St. Cloud, Minn.
Our apologies and congratulations to both banks on their attractive buildings.



. . .


(Continued from page 37)
Circumstances—interest rates, loan
to deposit ratios and other factors—
are materially different today from
what they were only a few years ago.
"Y In fact, among more economists today
there is a growing interest, awareness
and study of the topic of regional eco­
nomics. The increased concern that is
voiced about Appalachia, the Ozarks
and urban blighted areas is indicative
of a strong resurgence of the desire of
local and state governments to have
some voice, at least in part, in the diV rection and rate of their own economic
development and survival. Public
funds in local banks play a highly
technical but vital role in the eco- nomic well being of most commu­
There is recognition by both Wash­
ington and state governments that
local individuals, firms, agencies, and
financial institutions must take an
active rather than a passive interest in
promoting their own destiny and eco­
nomic health. In recent years it appears that local governments have de­
veloped myopia as to the essential role
deposits—including public deposits—
play in the ability of a bank to make
loans; loans which are desperately
needed by local busines men. Primary
deposits, with the ingenuity of the
fractional reserve system, permit a
multiple expansion of loans and business activity.
Dr. Paul Nadler of NYU in a recent
study in H a rv a rd B usiness R e vie w
points out that corporate bank balL ances have not been maintained com­
mensurate to their activity or bank
performed services which corporations
have come to consider their due. A re­
lated point can be made of demand
balances of government agencies. The
fact that corporate balances have been
reduced makes it all the more impera­
tive that local government accounts do
not add to the problem. Dr. Nadler’s
article points out that corporate treas­
urers “test” the banks reaction to
lower balances by reducing them until
Federal Reserve Bank of St. Louis

they invoke protest from the bank.
Many bankers may privately complain
of the development—but few take di­
rect steps to rectify the condition.
Some bankers that do are pleasantly
surprised to find that corporate comp­
trollers are understanding and in fact
have wondered why banks have been
so slow to raise the issue.
It is proper, reasonable, and in fact
long past due that bankers speak to
government executives as well as to
corporation treasurers who have been
carrying abnormally low bank bal­
CPA’s tell me that there are indeed
corporations which, in effect, carry
negative balances by virtue of their
playing the float on the items in proc­
ess of collection.

While governmental agencies do not
go to this extreme they have increas­
ingly reduced the proportion of de­
mand balances to their liquid asset
position. Their holdings of U. S. Gov­
ernment securities have dramatically
increased. Misguided and misinform­
ing newspaper editorialists generally
commend this type of action as pro­
viding additional income to the gov­
ernmental units and by implication,
though incorrectly, less need for taxes.
Like many overly simplified “solu­
tions” their analysis does not probe
deep enough. Bankers have a vital
obligation not only to their own insti­
tutions but also to their region, and
especially borrowers to help clarify
the widely held misconceptions regard­
ing such balances. This involves
among other things a most difficult
job, but one which must be done of
educating the public, politicians and
newspaper editorialists. It is a com­
plex task because it involves economic
evaluation of the less “visible” indi­
rect benefits of keeping and making
local funds available for local needs
vs. the obvious differential of higher
immediate interest from U. S. Treas­
ury bills than in demand or time de­
posits in local banks.

Funds which are moved out of a
county, school district, city or state
into other locations inevitably reduce
the credit base of the community from
which they are drawn and add to the
credit expanding base of the commu­
nity to which they are transferred.
The funds in a locality literally are
its economic blood stream. At times
of serious accidents it is not uncom­
mon for altruistic people with healthy
bodies and an adequate blood supply
to submit to blood transfusions for
the less fortunate. They recognize
that the blood transfusion will for a
time leave them less fortified—but will
be of more benefit to the unfortunate
person or persons needing the trans­
The blood transfusion it should he
noted is a voluntary action in which
greater benefit redounds to the recip­
ient than loss to the donor.
The e c o n o m i c blood transfusion
made by treasurers of state and mu­
nicipal government funds when they
withdraw local funds from banks and
put them into the national economy in
the form of purchase of U. S. Treas­
ury bills has at the best only marginal
benefit for the national economy, since
over all monetary policy is at work
through the central bank. Greater
benefit does not redound to the bene­
fit of the recipient (the U. S. Treas­
ury) than the loss to the economic
base of credit expansion potential of
the local community or region.
Value Is to Community

The value of a modestly higher im­
mediate return from U. S. Treasury
bills contrasted with the long run re­
turn and multiplier benefit of keeping
governmental funds available for lo­
cal needs is largely misunderstood by
the public. The tendency is for short­
sighted individuals to become fixed
with the idea that a windfall gain re­
dounds to the banker. Sight is lost
of the more important factor which is
that the local economy has retained a
greater proportion of its own funds
for its own economic benefit and the
local bankers become the intermedi­
ary through which a multiple expan­
sion of credit becomes possible. Con­
versely, a multiple reduction in the
credit base potential comes about by
withdrawal of local funds.—End.
Northwestern Banker, March, 1967


Fair Enough

Cheering Greek

M r. Smith was sitting with his wife
behind a palm on a hotel veranda one
night when a young man and girl came
and sat down on a bench near them,
hidden behind a palm. M rs. Smith
whispered to her husband, “ Oh, John,
he doesn’t know we are here, and T
think he’s goin g to propose. W histle
to warn him .”
“ W hat fo r ? ” asked Smith. “ N obod y
whistled to warn m e !”

G r o u c h : “ I hear that the football
coach gets five times as much salary as
the Greek professor. Isn ’t that quite
a discrepancy?”
S tudent: “ Oh, I dunno. D id you
ever hear forty thousand people cheer­
ing a Greek recitation?”

Highly Specialized

“ N ot yet. I ’m a slow forgetter. G im ­
me time, and I w ill.”

H u sb a n d : “ It says here that over
5,000 camels are used each year to
make paint brushes.”
W ife : “ Isn’t it amazing what they
can teach animals to do these d a y s !”

Wrang Product
A modern mother and her young
son were shopping in a supermarket.
T he child, trying to help, picked up a
package and brought it to her. “ N o,
no, honey,” protested the mother, “ go
put it back. Y o u have to cook that."

Give H i m



“ B y the way, Bill, have you forg ot­
ten that you ow e me ten dollars?”

W ho’s The Fairest?
T he mountaineer found a small m ir­
ror, the first he had ever seen. H e
looked into it with surprise, and e x ­
claimed, “ B y cracky, it’ s a pitcher of
me old p a p p y !”
Sentimentally he hid the m irror un­
der the bed. H is wife saw him hiding
it, and when he left the house, she took
the mirror, looked into it, and snorted,
“ So that’s the old hag he’ s been
chasin’ !”

Paralysis of Analysis
T he centipede was happy, quite,
Until a toad, in fun, said
“ Pray, which leg goes after w h ich ?”
This worked his mind to such a pitch
lie lay distracted in the ditch
C onsidering how to run.

First Sign
G room : Darling, when did you first
realize you loved m e?
B rid e : W h en I began to get mad at
people w ho said you were a stupid
j erk.

Get Well Wishes
A United States Senator suffered a W
minor stomach ailment and was taken
to a medical center for treatment.
The following day as he lay in his hos­
pital bed he received a telegram which w
“Your friends and colleagues in the
Senate wish you a speedy recovery
by a vote of B7 to 32.”

Too Late
A small manufacturer and his wife
suddenly found themselves in the
nouveau riche class but were having *
difficulty adjusting to a life of ele­
After the first dinner to which they
had invited a number of guests to -r
their 25-room mansion, the husband
turned to his wife and asked, “Well,
my dear, shall we have our coffee in
the library?”
“ It’s too late,” she replied. “The
library closes at six.”
Eye Spy
Wife: I saw you winking at a girl
on the corner today.
Husband: I wasn’t winking. Some­
thing got in my eye.
Wife: Yeah, and she got in your
car, too.
So True
“The time will come,” thundered the
lady orator, “when we’ll get men’s
“Yeah,” muttered the little man in
a rear seat, “next Saturday night.”
Should’ ve Known
Husband: Aren’t you ready to go
Wife: Stop nagging me. I told you \
an hour ago T’d be ready in a few
On Economy
T w o men were discussing autom o­
biles. “ Y es, sir,” said one, “ I believe
the best econom y is to trade every tw o
years. T hat’s what I ’ve done. A nd
do you k n ow ,” he continued proudly,
“ I haven’t missed a payment in 14
y e a rs!”

Northwestern Banker, March, 1967
Federal Reserve Bank of St. Louis


Ask a banker
that offers


B A N K -C A R E is an unusual
health-and-income plan for bank
customers. Because it is unusual,
it gives participating bankers a

competitive edge!
Hospital costs, as you know,
have sky-rocketed since 1960 and
are still going. B A N K -C A R E
supplies extra cash direct to your
customers to supplement present
insurance . . . or pay the living
costs that continue on . . . or for
any purpose they desire. It pro­
tects savings.
Central States contacts your
customers by mail— NO SA L E S­
M A N C A L L S — obtains their
Authorization for you to deduct
quarterly premiums.
Sounds great for depositors—
but how does it work out for
bankers? Of course, you receive
a generous fee for your services;
but bankers tell us there are other
important benefits:
1. It brings in new accounts.
2. Present customers appreci­
ate B A N K -C A R E — as high
as 1 out of 10 enroll.
Maybe you would like a com
petitive edge? For complete de
tails, write or phone —


C e n t r a l St a t e s
He a l t h & L i f e C o
o f Om a h a

T. LESLIE KIZER, Chairman of the Board
504 South 18th Street
Omaha. Nebraska 68102
Federal Reserve Bank of St. Louis

ut 1,200 13cmk

Senior Vice President

We think you 11find
our Grain Draft Collections
a little bit better.

And a little bit faster . . . a little bit less expensive, too.
Why? Because we have established correspondent
accounts in all key markets. There is never any delay,
never extra charges caused by unnecessary, timeconsuming handling.
Call Jerry Nelson—that's Jerry's picture above— or any
of our other officers (they're all in the group below)
any time you want correspondent service that's . . .

a little bit better.

Sixth and Walnut, Des Moines 4 • 2 84-8686* Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis

" y e s , w e ' r e h e r e to help you g e t w h a t you w a n t "
Bernie Kersey
C o m p u te r S p e c ia lis t, Don Kimmel A ssista n t V ic e P resident, Jerry Nelson
S e n io r V ice P resid e nt, Bob Buenneke A ssista n t V ic e P resident, Dale
Luckow A ssista n t V ice P resid e nt, G eorge H arnagel A ssista n t V ice President