Full text of The Northwestern Banker : March 20, 1967, No. 1023

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Oldest Financial Journal West o f the Mississippi

March 20 ,19 07

Des Moines, Iowa

No. 1023

Oregon Ruling Questions Charge Cards

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A ruling by Oregon’ s Attorney
General Robert Y. Thornton that
“ interest rates charged on bank
credit card accounts’ ’ are too high
and violate an Oregon usury law
may have far reaching effects
throughout the Northwestern Banker
area.
Mr. Thornton has held that
the 18% (and higher) simple annual
interest on Bank Ameri cards, is
sued by the United States National
Bank of Oregon and the First Na
tional Bank of Oregon, exceeds the
state’ s 15.5% legal limit on bank
loans.
The banks have responded that
they had been advised by the
Comptroller o f the Currency that
they could charge what a competi
tor charges. In this ca se, the
banks consider small loan firms
to be com petitors, and small loan
firms can charge up to 36% inter
est in Oregon. (Some sources feel
that the small loan firms instigated
the ruling because they were suf
fering from the lower fees charged
on bank credit card accounts.)
Normal rate charged under the
Midwest Charge Card plan emana
ting from a number of Chicago
banks (Continental, First and Har
ris) is similar to BankAmericard
in that it is iy2% per month on the

unpaid balance, which totals 18%
per year. Under current laws this
rate is above the maximum legal
rate of interest in some states.
For example, Iowa has a maximum
of 1% per month on the unpaid
balance or 12% per year.
Some authorities contend that
with the credit card system a fee
is charged - and not interest. From
this fee, the bank must pay the
co sts of handling the accounts;
the co sts of billing the customer;
mailing charges, and credit lo ss e s .
They further contend that it is
difficult to tell how much true
interest a bank will make - but that
it will be only a small fraction of
the 18% the Oregon attorney gen
eral claim s.

Develop Youth Market
“ The first children born in
the postwar ‘ baby boom’ will reach
21 this year, and the same teen
ager who only yesterday screamed
with the B eatles, will be a mother
and housewife very so o n .’ ’
Peter F. Drucker, management
professor at New York University’ s
Graduate School of Business, made
these points at the recent ABA
Marketing Meeting in New York,
as he emphasized the importance

of the younger generation to the
banking business.
A similar alarm was sounded
at the 64th ABA National Savings
Conference in Atlanta, as Profes
sor John W. Chisholm of Louisiana
State University said that an
understanding of young p eople’s
attitude toward thrift is a key to
effective savings promotion in the
future.

New Foundation Ads
The new national advertising
campaign for the Foundation for
Commercial Banks, which started
in leading magazines this month,
in leading magazines this month,
se lls the concept that only com
mercial banks offer full banking
services to accommodate busy
people in today’ s fast-paced daily
living, Richard B. Beal, Founda
tion executive director, announced.
“ Featuring candid black and
white situation photographs, each
of the new ads focu ses on the
major advantage Full Service
Banks
have
over competitive
institutions- - the convenience of
having all financial services under
one ro o f,” Mr. Beal said.
The
photographs
illustrate
“ stop-action” scen es of men and
women caught in busy moments
(Continued to back page)

We're here to help
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"Yes, we're here to help you get what you want” Bernie Kersey
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things are happening at C E N T R A L N A T IO N A L . . .
things that mean even better service
to Iowa banks.

CENTRAL NATIONAL BANK AND TRUST COMPANY
M em ber F e d e ra l D e p o sit In su ra n c e C o rp o ra tio n

IOWA NEWS
CEDAR RAPIDS: Funeral services
were held last week for Frank C.
Welch, chairman, P eoples Bank &
Trust Company. Mr. Welch died from
a heart attack while vacationing
in Florida. Survivors include Mrs.
Welch and his son, Ted J. Welch,
president of the bank. Mr. Welch
was a 50 year banker and a past
president of the Iowa Bankers A s
sociation .
EMMETSBURG: A new building is
planned for the Palo Alto State
Bank. Plans are being prepared by
Charles Herbert and A s s o c ., Des
Moines. Work will start this summer.
IOWA CITY: Mrs. Joyce Chapman
was recently named auditor of the
First National Bank. Before her
recent marriage she was employed
with Plaza State Bank, Des Moines.
She is the former Miss Joyce Boone.
LIVERMORE:
Funeral
services
were held recently for J. F. Hamm,
68, founder of the Livermore State
Bank. Mr. Hamm sold his interests
two years ago and had been living
for the past several months in Mesa,
Arizona. Mrs. Hamm will continue
to reside in the permanent home in
Livermore.
LONE TREE: Donald M. Kout has
resigned as an assistant examiner
for the Iowa Banking Department to
join the Farmers & Merchants Sav
ings Bank here.
WATKINS: Gerrold E. Kuester has
been advanced from assistant cash
ier to cashier at the Watkins Sav
ings Bank, replacing A. J. Sch-

muecker, who has resigned. The
bank has also promoted Mrs. Martha
Brecht to assistant cashier. Mr.
Schmuecker served the bank from
January, 1929, to March, 1967. He
will devote his full time to insur
ance and real estate.

N E B R A S K A NEWS
BLAIR: Monte Mead has joined the
Blair Bank. He has been a national
bank examiner and has also been
associated with the Bank of V alley.
GENEVA: The Fillmore County
Bank began operation at its new
location at 1022 G Street recently.
The new bank has a drive-in and
other modern equipment which will
be shown at an open house, to be
announced later.

There were no other officer
changes made at National Bank of
Commerce.
LINCOLN: Jack D. Campbell, CLU,
was elected as a director of Lincoln
Bank South, replacing former Lt.
Gov. Philip C. Sorenson, who re
signed to move to Indiana last
month. Mr. Campbell is a general
agent for Massachusetts Mutual
Life.
LINCOLN: Funeral services were
held recently for Mrs. George W.
Holmes, 88, widow of George W.
Holmes, former president and chair
man of the First National Bank.
LINCOLN: All Makes O ffice Equip
ment Company of Omaha recently
opened a new store on the corner
o f 10th & O.
MALMO: New officers named by
the Security Home Bank are: R ich
ard Barry, president; Don Cejka,
cashier, and Mildred P acal, a s s is t
ant cashier. Mr. Barry is inactive
in the operation of the bank.

LINCOLN: Directors o f National
Bank
of
Commerce announced
Wednesday morning, March 15, that
Glenn Yaussi has been advanced
from president to chairman of the
board and ch ief executive officer.
His su cce sso r as president is Paul
J. Amen, who is resigning as vice
president of Wachovia Bank & Trust
Company in Charlotte, N .C ., to re
turn to Lincoln where he was a
star University o f Nebraska foot
ball player under Coach Dana X.
Bible in the mid-1930’ s. It was
also announced that Myron Weil
has resigned as executive vice
president of National Bank of Com
merce. He will join Paul Dunlap,
president of Houghton State Bank,
Red Oak, Iowa, in the management
of Mr. Dunlap’ s interests in four
Iowa banks that have assets of
about $60 million. These are the
First National, Clinton; P ella Na
tional; Lyon County State, Rock
Rapids, and Houghton State.

MINDEN: D. R. Nichol has retired
as a v ice president of the First
National Bank after a 44 year c a
reer in the banking business.
OMAHA: George Spence, ag reprefor American National Bank, Chi
cago, who resides in Omaha, su f
fered a heart attack recently. He
is now recuperating at his home
at 4210 South 90th Street, Omaha.
OMAHA: Funeral services were
held last week for Kenneth G. Har
vey, 66, president, Douglas County
Bank of Omaha. He died while
vacationing on the Island of Maui
in the Hawaiian chain.

OMAHA: C. Paul Means, son of
C ecil W. Means, senior vice pres
ident, South Omaha Stock Yards
Bank, is moving from Washington,
D. C. to Vietnam where he will be
a branch ch ief of the management
information o f Agency for Inter
national Development.

Jarry Parker is deeply Earnest
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M IN N ES O T A NEWS

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ALBERT LEA: Hilmer L. Opp is
the new cashier of Freeborn County
National Bank. He has been an
assistant cashier with the Aberdeen
National Bank, Aberdeen, S. Dak.

is the new sign for the
top service you always get from
your Capital City Correspondent

National Bank of Commerce

COKATO: The 75th anniversary of
the founding of the State Bank of
Cokato was celebrated with an
open house recently.

>■

FLOODWOOD: An extensive re
modeling program is planned by
the First State Bank here. The
new structure will be a “ Colonialtype.”

LeCENTER: Funeral services were
held recently for Walter H. Ebert,
chairman, First State Bank. Mr.
Ebert was a 50-year banker.

•f

MINNEAPOLIS: Edward W. Aspli,
vice president, marketing, North
western National Bank, has been
elected a v ice president of Bemis,
Inc. His duties will be in the area
of corporate administration.
PARK RAPIDS: Donald O. Wierima
has joined the staff of the Citizens
National Bank. He was formerly
with 5th Northwestern National
Bank, Minneapolis.
RICHFIELD: Henry C. Reget, pres
ident, State Bank of Hamburg, has
been named a director of Richfield
Bank and Trust.

ROCHESTER: Charles Tritz was
recently named an assistant cash
ier at the Rochester State Bank.
He began his banking career in
Clear Lake, S. Dak. in 1959.
SAINT PAUL: Authors of two bills
to prohibit nonpar banking in Minne
sota reached a compromise. The
bill now recommended for passage
would abolish nonpar banking by
November 1, 1968. About 400 non
par banks in Minnesota would be
affected.

fyi fm
i

MEMBER F.D.I.C.

in L i n c o l n , N e b r a s k a 6 8 5 0 1

He was associated for 21 years
with First Bank Stock Corporation
before serving in other Upper Mid
west banks.

S O U TH D A K O T A NEWS
TRIPP: Maurice P. Klatt, cashier,
Dakota State Bank, has been ad
vanced to vice president, and Har
rison O. Brosz has moved from
assistant cashier to cashier.

N O R T H D A K O T A NEWS
BISMARCK: Governor William L.
Guy had until yesterday (March 19)
to veto, sign or let become law
without his signature the bill passed
by the state legislature that would
increase the maximum legal inter
est rate in the state from 7% to 8%.
Banks and other financial interests
had sought a 9% ceilin g. Governor
Guy has been highly critical of
banks and financial institutions on
various o cca sio n s. Among bills
passed to date is one that increases
the tax on net income of banks and
S&L’ s from 4% to 5%. The Gover
nor had sought a higher tax rate
on them. The tax on other busi
n esses was not raised. F ees for
state bank examinations have been
increased by 30% to help raise
salary levels and add new exam
iners. To date, the Governor has

WINDOM: First National Bank has
hired Charles Bergquist, former
manager of the Windom Coop Assn.
WINONA: G. M. Grabow, 55, pres
ident, Merchants National Bank,
died late last month while vaca
tioning in Sebring, Florida. He had
been convalescing from major heart
surgery performed last November.

vetoed 15 b ills, including one that
would have placed the state on
Central Standard Time for the year.
The veto, in effect, places the
state on CST, with DST during the
months that other states are on
DST under the federal ruling.
CASSELTON: R. T. Carley, pres
ident, Casselton State Bank, has
announced the promotion o f Joseph
C. Deutsch from cashier to vice
president and cashier, and the
advancement of John J. Spikermeier
to vice president and manager,
insurance department.
FARGO: A. K. Simpson, president,
Merchants National Bank and Trust
Company, has announced the ap
pointments of Lynn M. Hoghaug to
assistant trust officer, and Edmond
O. Gunderson to assistant se cre
tary, trust department.

New FN M A Issue
The Federal National Mortgage
A ssociation plans to se ll $900
million of participation certificates
on March 22.
Of the offering, $150 million
would be sold directly to govern
ment investment accounts.
The
proposed public issue
would be dated April 5, 1967, and
would con sist of $400 million matur-

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CEDAR RAPIDS, IOWA 52406
ing April 7, 1969; $200 million
maturing January 19, 1972, and
$150 million maturing April 6, 1987.
The sale would bring to $2 b il
lion the amount of P C ’ s offered by
the FNMA this year. The last issu e,
sold in January, totaled $1.1 b il
lion, to yield 5.20%. The maturities
were five, 10 and 15 years.
In the January sale, $600 mil
lion went to the public, and $500
million to government investment
accounts.

Foundation A d s ...
(Continued from front page)
of their lives, while the head
lines stress that today’ s busy
people just don’ t have time to
shop around for financial services
or advice.
The advertisements also fea
ture a comparison chart showing
the many more services available

at Full Service Banks than at
competing institutions. A slogan
line preceding the chart reads
“ You get more for your money at
a Full Service Bank.”
“ The last element in the ads
is the Foundation’ s seven-star
Full Service Bank emblem,” Mr.
Beal said.
The first ad in the series
tells the'reader, “ 35 minutes ago,
Tom Roberts was told he’ d have
to fly to London in less than
three hours! Will he have time to
cash a ch eck, take his passport
out of the safe deposit box, buy
some travelers checks and get a
letter of introduction? You can
bank on it. At a Full Service
Bank.”
The ad is scheduled March 17
in L ife, April 4 in Look, March 13
in Newsweek, April 8 in the Satur
day Evening P ost, and March 10 in
Time magazine.
The Foundation for Commercial
Banks conducts a $1.8 million
national advertising and promotion
campaign to educate the public
about the advantages of Full Ser
v ice banking. Currently more than
6,000 banks, representing 74% of
deposits in the United States, are
Foundation members.

Comptroller’ s Record
Has William B. Camp, new
Comptroller of the Currency, de
cided to take a less-liberal course
in approving applications for new
charters and branches than did
James L. Saxon, his predecessor?
Since Mr. Camp took over the
duties of Comptroller on Novem
ber 16, he has disapproved 45
branch applications out of 115, or

-------- ------------------------------------------------ ■ —

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39.1%. Mr. Saxon, by contrast,
from July 1 through November 15
last year turned down only 47 of
292, or 16%.
During February, 1967, 11 d is
positions were made on applica
tions for new charters, and only
one application was approved.
A total of 47 applications for
branches were screened during
February, and 28 were approved.
In Northwestern Banker territory,
one new bank application, in New
Hope, Minn., was disapproved.

-V

WANT ADS
R ates
25 ce n ts
per word per
insertion.
Minimum:
12
words.
NORTH W ESTERN B A N K E R
306 15th S t., D es M oines, Iowa

BANK WANTED
Iow a -Illin ois or Wisconsin
Experienced banker wants to buy
$2 to $6 million bank. Prefer 51%
ownership. Continued employment
contract option to seller. Write
NORTHWESTERN BANKER, File
TGB, 306 Fifteenth Street, Des
Moines, Iowa 50309.
POSITION AVAILABLE
Cashier for $5,000,000 bank in
north central Iowa. P lease send
resume and expected salary re
quirements. Write Box SNL, in care
o f the NORTHWESTERN BANKER,
306 - 15th St., Des Moines, Iowa
50309.

FOR SALE
Loan application forms for the
modern agricultural banker. Sam
ples on request. Farm Business
C ouncil, Inc., P.O. B o x F , Urbana,
Illinois 61801.
POSITION WANTED
S pecialist in overlines and cattle
loans desires work. Offers years
o f banking experience. Intense de
sire to please. Backed up by staff
of specia lists in all phases of
banking. For immediate action ca ll
Max Roy in Iowa City 338-5224 or
at La Salle National Bank, 135 So.
La Salle St., Chicago, 111. 60690.
STate 2-5200 (Area Code 312).

No. 1023 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines, Iowa 50309. Subscriptions 50tf per copy, $4 per year. Second cla ss postage paid at Des Moines, Iowa. Address all mail
subscriptions, changes o f address (Forms 3579), manuscripts, mail items to above address.

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Full text of The Northwestern Banker : March 20, 1967, No. 1023

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