Full text of The Northwestern Banker : March 25, 1968, No. 1088

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Oldest Financial Journal West of the Mississippi
y

Des Moines, Iowa

No. 1088
A

%■

Will Fed Raise Interest Rate Ceiling?
A major question in the minds
of financial executives is wheth
er the Federal Reserve Board
will lift the ceiling on interest
rates that commercial banks
may pay for savings.
Reacting to the international
monetary crisis, the Fed in
creased the discount rate on
March 14 from 4%% to 5% in
an effort to curb speculation on
the dollar. It did not make a
change in Regulation Q, since
it apparently felt that banks
had sufficient funds to meet
loan demand. The Fed also
thought that banks could attract
funds through CD’s since yields
on Treasury bills had eased
back.
While the rate structure is
such that no CD runoff has
occurred, the banks are none
theless vulnerable to such a
runoff.
According to latest Federal
Reserve figures, $4.7 billion in
large CD’s were scheduled to
mature in March. In April, the
banks could face the prospect
of a loss of funds with at least
$4 billion of CD’s of $100,000
or more coming due.
In its announcement of the

discount rate hike, the Board
said the increase is designed
to “ strengthen the international
position of the dollar and to
curb inflationary pressures in
the domestic economy.” But
the fact that the increase was
only one-half point leads many
financial experts to believe
that the Board was far more
concerned with the world money
crisis than with the state of the
domestic economy. They say
that if the Board had wanted to
dampen inflationary pressure
along with strengthening the
dollar it would have approved a
hike in the discount rate of at
least one point.
It seems clear that the Board
decided against a larger dis
count rate increase —in a large
part —because of the effect of
such a move on the housing
market. A higher discount rate
might have made it more im
mediately necessary to lift the
interest rate ceiling that com
mercial banks pay. This, in
turn, could have caused a loss
of funds of thrift institutions
and, therefore, a scarcity of
credit to the housing industry.
Most bankers feel that the

March 25,1968
Fed ’s discount rate action will
not result immediately in a
jump in the prime rate banks
charge on loans to best cus
tomers. Business loan demand
at major banks has been slug
gish so far this year. As a
consequence,
these
bankers
say a one-half point increase
in the discount rate does not
justify a hike in the prime rate.
But other bankers believe
that the prime rate will have to
be increased in the immediate
future.
Reacting to the Fed’ s deci
sion, the American Bankers As
sociation said the discount
rate increase was necessary,
“ but monetary policy alone can
not be relied upon to protect
the dollar.” Such action, ABA
continued, risks a return to the
situation in 1966, “ including
stringent credit conditions and
unduly harsh impacts on cer
tain industries, especially hous
ing.”
ABA urged Congress and the
Administration to move “ with
all possible speed” to cut back
non-Vietnam spending and enact
an income tax increase “ at
least as large as the 10% sur
charge requested by the P res
ident.”

Yes! We're here to help you get what you want

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

IO W A -D E S M O IN E S
N A T IO N A L B A N K
S ix th a n d W a ln u t. Des M o in e s 5 0 3 0 4 • 2 8 4 -8 6 8 6
M e m b e r F ederal D e p o s it In s u ra n c e C o rp o ra tio n

■Pi

7
¿ A

N O W I N O L IR

SECOND C E N T U R Y .^
/ ^

0 F B A N K ,N G

has completed its bank remodel
ing project.

SECURITY

NATIONAL

BA NK

Sioux City, Iowa

IOWA NEWS
CEDAR FA LLS: Rod L . Jen sen ,
cashier, F irst National Bank, has
been appointed to the Cedar F a lls
Planning and Zoning Commission.
CEDAR RAPIDS: Thomas J . Nel
son, who worked in the Cedar
Rapids .office of Conway B ro s .—
F irst of Iowa Corp., has joined
the National Manufacturers Bank
of Neenah, Wise., as assistan t
cashier, according to Douglas F .
Graves, president. Mr. Nelson was
associated with the trust depart
ment of The Merchants National
Bank
before
joining Conway.
DUBUQUE: Lee M. McDermott, for
merly manager of the P laza “ 20”
office of American Finance Com
pany in Dubuque, has been em
ployed in the installment loan de
partment of the F irst National
Bank.
MARSHALLTOWN: After 48 years
in the banking field, Mrs. Blanche

Monohon, assistan t cashier of the
Fidelity Savings Bank, will retire
March 30.
NEVADA: Rodney Burnett has
resigned as assistan t vice pres
ident of the Jefferson State Bank,
to join the Hertz Farm Manage
ment service in Nevada as of
April 1.
PALO: Controlling interest in the
Palo State Bank has been pur
chased by the Bankers Equity
Corporation, a subsidiary of In
vestors Equity of Iowa, 7200 Hick
man Avenue, Des Moines.
Curtis Hayes, prominent Linn
County farmer, will continue as
president. W. J . Baehler, president
of Investors Equity, and Robert
Baehler, vice president and treas
urer of Investors Equity, have been
elected vice presidents and direc
tors of the bank.
RICE V ILLE: Ronald F . Kocher,
has resigned as supervisor of
student aid for Upper Iowa Col
lege, Fayette, to join the F irst
National Bank, R iceville, as a s
sistan t cashier on April 1.

NEBRASKA NEWS

CHRISTY
ARMSTRONG

LEO
KANE

'WE HAVE WHAT YOU WANT
in

correspondent

bank’

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

BLAIR: Mrs. Stanley (Dorthea)
Bednar, 54, died March 18 after a
fall on the steps in the basement
of her home. Stanley Bednar is
executive vice president of the
Washington County Bank at Blair.
Death was attributed to head in
juries.
CHESTER: The Chester State Bank

LINCOLN: It was incorrectly stated
in the March 11 issue that appli
cation for a state bank charter
for West Gate Bank had been made
for Hastings, Nebr. This should
have been Lincoln. The applicants
have filed to locate the proposed
bank in Westgate Shopping Center.
C. R. Haines, director of banking
for Nebraska, announced last week
that a hearing on the application
has been se t for June 13 at
9:30 a.m. at the Liquor Control
Commission, 401 NSEA Building,
605 South 14th Street in Lincoln.
NORFOLK: John Olson, formerly
of Lincoln, has been named a new
vice president of the DeLay First
National Bank.

OMAHA: Ira L. Couch, J r ., and
Robert A. F alk , both formerly a s
sistant secretaries of Kirkpatrick,
P ettis, Smith, Polian, Inc., invest
ment bankers, have been named
vice presidents. C. Leo Adams,
formerly assistant treasurer, has
been named assistant secretary
and treasurer.

MINNESOTA NEWS
LAKEVILLE: Betty Langord has
joined the staff of the Lakeville
First National Bank. She will be
doing teller and accounting work.
MINNEAPOLIS: Joseph F . Ringland, J r ., former state banking
commissioner, has been named
executive vice president and man
aging officer of the Bank of Minne
apolis and Trust Company. He was
assistan t vice president of North
west Bancorporation before be
coming commissioner of banks and
chairman of the state commerce
commission in 1965.
MINNEAPOLIS: The final five
Minnesota Bankers Association ex
ecutive officer workshop sessio n s
were held March 18—22. The final
five meetings were held in F air
mont, LeSueur, Owatonna, Plainview and Monticello. Attendance
at the 10 previous meetings in the
series of 15 workshops ran nearly
80% of potential, and it is esti-

■>

9TH AND MAIN, DUBUQUE, IOWA
M EM B ER. FDIC • FRS

'C h i l e s &

co m pan y

M e m b e r, M id w e s t Sto ck Exchang e .

(
LEO

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

JAMES
W R IG HT

M U N IC IP A L A N D C O R P O R A T E B O N D S
L IS T E D , U N L IS T E D A N D L O C A L S T O C K S
412 Farm Credit Building, Omaha, Nebraska 68102
Phone 346-6677

4
j

LIIM C Q LIM

—Professionals in Livestock Loans

FIRST NATIONAL BANK S TRUST COMPANY OF LINCOLN
12th & N Street • LINCOLN, NEBRASKA • Member: F.D.I.C.

*
mated that 600 of the sta te’s 725
bank managing officers attended
the workshops.
MINNEAPOLIS:
The
American
Bankers Association regional con
ference on fundamentals of bank
personnel administration was held
here March 17—22.

MONTEVIDEO: O. B . Rekow, ex
ecutive vice president of the F irst
National Bank, has announced the
employment of Richard E . Benson
as installment loan officer. He was
formerly a loan officer for the Alan
Plan Corporation of Des Moines.

£
ROCHESTER: Gerald L . Dreier,
formerly sa les manager of the
Village Chevrolet in Wayzata,
Minn., has been appointed director
of the automotive dealer program
at Olmsted County Bank.
*

RUSH CITY: Funeral services re
cently were held for Carl H. Som
mer, 91, who died after a long
career in banking and public and
civic affairs. Mr. Sommer was
formerly chairman of the board of
the State Bank of Rush City, which
he founded in 1892, and last sum
mer was honored as one of four
persons in the nation active in
the banking business for 75 years
or more. He also had worked for
the Swedish American National
Bank and the Northwestern Bank
in Minneapolis.
ST. PAUL: Richard E itel has been
named loan officer at the Summit
National Bank, and Eulah Hall
has been named auditor. Mr. E itel
was formerly with the installment
loan department of the F irst Na
tional Bank of St. Paul. Miss Hall
has been with the Summit National
since 1964.

the Colorado bank commissioner
by five officers and directors of the
Alameda National Bank. They are:
Charles H. Smukler, board chair
man; R ussell E. Wright, president;
Sidney C. King, executive vice
president; and two directors, DonaldK.Norgren and Robert L. Cohen.
This is the first charter appli
cation to be filed for a Denverarea bank in over a year.
DENVER: The Mountain States
Bank has named Edward D. Pier
son, president of Minder Denver
In c., manufacturer of conveying
equipment, to its board of direc
tors.

DENVER: Application for a state
bank
charter for the proposed
*
Columbine State Bank along E ast
Hampden Avenue east of the V al

ley Highway has been filed with
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DO YOU
Want to buy, sell or trade
bank equipment or fixtures?

ENGLEWOOD: John V. Christen
sen of Littleton, commissioner of
the Araphoe County Commission,
has been named a director of the
Continental National Bank, for
merly known as Englewood State
Bank.

Urge Passage of
Revenue Bond B ill. . .
WASHINGTON, D .C .-R e p . Fer-

FRANK
S IB E R T ....
A GOOD MAN
TO KNOW
WHEN YOU
NEED SPECIAL HELP

Let Mighty Mite
NORTHWESTERN BANKER
WANT ADS
Do the job for you!
* Direct to bankers (read by
officers and directors)
‘ Timely (five
every month)
‘ Effective (ask
satisfied users)

publications

our

many

‘ Economical (rate: 25$ per
word-minimum 12-word ad)

MAIL YOUR AD TO D A Y

COLORADO NEWS
DENVER: The University Hills
Bank has named Clyde G. K issin
ger, president of Kissinger Petro
leums Ltd., Denver; Trans-Canada
Drilling Company and Central Colo
rado Investments Corporation, to
its board of directors.

nand J . St. German, (D) R. I., said
last week he is circulating a le t
ter urging an “ early hearing’ ’ on
legislation which would permit
banks to underwrite and deal in
revenue bonds.
The bill was passed by the Sen
ate Nov. 8. Since that date, it has
been in the House Banking and
Currency Committee whose chair
man Wright Patman, (D) Texas,
opposes it.

Omaha, Nebraska

Member FOIC

T o : Northwestern Banker
306 F ifteen th Street
Des M oines, Iowa 5 0 3 0 9

National Bank
& Trust Company
Kansas City, Missouri • member f .d .i .c .

Always the First to Serve You!

First National Bank of Omaha

16TH & FARNAM - OMAHA, NEBRASKA g
Member Federal Deposit Insurance Corporation

/Rk Cross Co
BANK PLANNING
Waterloo, Iowa
SOUTH D AKO TA NEWS
FREEMAN: The F irst National
Bank has advanced M. H. Mehlaf
from cashier to vice president and
cashier, and named John R. Waltner as assistan t cashier.
GETTYSBURG: John Sletten, 24,
has joined the F irst Potter Co.
Bank. Previously, he was with the
Western Montana National Bank,
Missoula, and the F irst Computer
Corp., Minneapolis.
HURON: South Dakota Bankers As
sociation headquarters has an
nounced that a reception will be
held April 4 in the Belvedere Room
of the Shamrock Hilton Hotel in
Houston, T exas, for South Dakota
bankers attending the Independent
Bankers Convention.
HURON: Plans should be made
now to attend the annual agricul
tural conference in Huron on
April 17—18 at the P lains Hotel.
SIOUX FA L L S: Gerald Feldhaus
has been named installment loan
manager at the Union Bank and
Trust Co. He was with Federated
Finance Company for five years.

NORTH D AKO TA NEWS
STANLEY: Reino Johnson, wellknown local fanner and rancher,
has been named agricultural repre-

sentative and assistant cashier for
the Scandia American Bank.
WAHPETON: Willard Strege, life
long resident, has been named
agricultural representative for the
Wahpeton National Bank. He has
served in the North Dakota leg is
lature and worked as field repre
sentative for the Production Credit
Association.

MONTANA NEWS
BILLINGS: Plans should be made
now to attend the second annual
Real Estate Mortgage Workshop
at the Northern Hotel here on
April 26—27. The meeting starts
with a noon luncheon on the 26th.
ANACONDA: The First Security
Bank of Anaconda has been ap
proved for Federal Deposit Insur
ance. Total capital accounts are
$490,000.

A P P E A L MINNESOTA DECISION
The Independent Bankers Assn,
has asked the Federal Reserve
Board to reconsider its approval
of the acquisition of National Bank
of Ely, Minn., by Northwest Bancorporation of Minneapolis. It said
the Ely acquisition would give
NorthwestBancorporation and F irst
Bank Stock Corp., also a Minne
apolis bank holding company, con
trol of 70% of deposits in the area.

WANT ADS
R ates 25 cents per word per
insertion. Minimum: 12 words.
NORTHWESTERN BANKER
306 15th S t., Des Moines, Iowa

POSITION AVAILABLE
Opportunity for Installment Loan
Officer as Second Man in $20 mil-

ÛÛ
Bank Under the Big

CENTRAL

NATIONAL

“ The B ank That C ares’

BANK

AND

TRUST

M e m b e r F ed era l D e p o s i t In s u r a n c e C o r p o r a t i o n

COMPANY

lion bank. Some experience pre
ferred. Write F ile WFB, in care of
NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309.
POSITION AVAILABLE
Ames Grad, with some farm lending
experience; age 27—32; for position
in $3 million Eastern Iowa bank.
No fee. Contact Mrs. Harriette
Allison, Bankers Service Corp.,
1301 Register & Tribune Building,
Des Moines, Iowa 50309. T e le
phone 515 /244—3113.
POSITION AVAILABLE
SUBURBAN DENVER BANK in
outstanding community seeks ex
ecutive vice president with com
mercial loans as primary responsi
bility. Ability to circulate effec
tively within atop level community
is also desirable. Bank footings
$8 million and growing healthily.
Fine opportunity for right man.
Send resume to F ile CGB, in care
of NORTHWESTERN BANKER,
306 Fifteenth Street, Des Moines,
Iowa 50309.
BANK FOR SALE
Controlling interest in a longestablished $1.6 million bank with
profitable insurance agency. Write:
Bankers Service Corporation, 1301
Register and Tribune Building,
Des Moines, Iowa 50309.
FOR SALE
The Farm Picture and The RanchFarm Picture, modern newsletters
that talk money and credit to farm
ers and ranchers from a banker’s
point of view. Samples for inspec
tion. Farm Business Council, Inc.,
P .O .B o x F , Urbana, Illinois 61801.
DESIRE CHALLENGE OF
NEW BANKING CONNECTION
Present employer backs me up with
a complete staff of sp ecialists who
know banking from advertising to
trust. They have a proven record of
providing outstanding service to
correspondents in the midwest.
They thrive on challenge. All I ask
is 30 minutes of your time to tell
you about this fine group. That’s
all. Call Max Roy at 338—5224 in
Iowa City. Or phone my boss at
La Salle National Bank, 135 South
La Salle St., Chicago, 111. 60690.
STate 2—5 200 (area code 312). Mem
ber FDIC. Complete Trust Services.

No. 1088 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des

Moines,
Iowa 50309. Subscriptions 50* per copy, $6 per year. Second class postage paid at Des Moines, Iowa. Address all mail

https://fraser.stlouisfed.org
subscriptions, changes of address (Forms 3579), manuscripts, mail items to above address.
Federal Reserve Bank of St. Louis

Full text of The Northwestern Banker : March 25, 1968, No. 1088

FRASER