Full text of The Northwestern Banker : May 1971, 77th Year, No. 1289

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South D akota
Convention
Program

Illinois
C onvention
Program
-41

— 57

N orth D akota
Convention
Program

Colorado
Convention
Program

F. W . HEITMANN, JR.
P resid en t

■74

-67

R. V. WELLS
P resid en t

C. GALE SELLENS
P resid en t

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Federal Reserve Bank of St. Louis

A
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NOW! Save 8^ on
MNB’s new Bond Portfolio
Accounting Service!
Yes, it’s true! If you act now you can save 8 (eight) cents on
Merchants National Bank’s fabulous new Bond Portfolio
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MERCHANTS NATIONAL BANK
C E D A R R A P ID S , IO W A 52401

This coupon entitles the bearer to eight cents ($.08),
redeemable on acceptance of MNB’s New Bond Port
folio Accounting Service. Redemption can be made by
contacting Merchants National Bank Correspondent
Officers, John Mangold 398-4313; Thomas M artin
398-4306, or Terry M artin 398-4320; or Jerry Trudo
398-4314. Sorry, only one coupon per bank. Coupon
expires October 31, 1971.

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Federal Reserve Bank of St. Louis

World-wide
Services.
H ow can you
offer them to
your custom ers?
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Ask the men
w ho w rote the book.
A n y d ay , a c u s to m e r m a y ask y o u fo r c re d it d a ta o n a firm in T o k y o ,
o r a d v ic e o n th e e c o n o m y o f F ra n k fu rt, o r R io. Y our an sw er?
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I n a d d itio n , th r o u g h o u r C h ic a g o h e a d q u a rte rs , T h e N o r th e r n T r u s t
I n te r n a tio n a l B a n k in g C o rp o ra tio n in N e w Y ork, a n d o u r
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¥
->

Trust Northern •••
All your m oney matters matter to us.

NORTHERN
TRUST
a BANK

THE NORTHERN TRUST COMPANY
50 SOUTH LASALLE STREET AT MONROE
CHICAGO 6 0 6 9 0 • Financial 6 -5 5 0 0 . Member F.D.i.C

THE NORTHERN TRUST INTERNATIONAL BANKING C0RP. • 90 WILLIAM ST., NEW YORK, N.Y. • LONDON BRANCH • 38, LOMBARD ST., LONDON E.C.3
Northw estern

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Federal Reserve Bank of St. Louis

Banker, M a y ,

1 97 1

It’s free
Do you know why some people read
an ad, and others simply ignore it?

|||tos.«v.

Chances are you are reading this
one because we are offering
something for nothing.

r = ’:

And it’s a valuable something: a
117-page manual on bank
advertising, marketing, public
relations and sales promotion.
Actually, the manual is a condensed
text of current bank advertising
theories and practices.
Theories and practices that work.
For instance, the manual explains
and evaluates advertising in
newspapers, radio and television, as
well as direct mail, outdoor,
premiums, novelties, window and
lobby displays, exhibits and films.
Also, the manual points out the
common problems you can expect
from each medium. And its
advantages.
Most important of all, it offers
suggestions and solutions to many
of your advertising, marketing and
public relations problems.

' " - * ^

For your copy of “Your Bank's
Advertising,” write to your
Correspondent Representative, First
National Bank in St. Louis,
St. Louis, Missouri 63166.

Better yet, since the manual is free,
invest in a phone call to us.
(314) 421-2000.

F IR S T
N R T IO N R L
BRN K

First National Bank in St. Louis
Your First National Representatives
Jefferson L. Miller, Senior Vice President
David M. Culver, Commercial Banking Officer
Paul M. Ross, Vice President
Harry L. Smith, Senior Vice President

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Federal Reserve Bank of St. Louis

IN S T . L O U IS

‘
v
*

E dw in V an H orn e D ies
Edwin N. Van Home, 81, died in
Omaha April 29. Funeral services were
held in Omaha and burial was in Paw
nee City, Nebr.,
where he was
born January 9,
1890. At the time
of his death he
was chairman of
Van Horne In
vestments, Inc.
Mr. Van Home
had a long and
distinguished ca
E. N. VAN HORNE
reer in the field
of finance. His first job was with the
Farmers National Bank in Pawnee City.
After serving as a state and then a na
tional bank examiner, he purchased the
Farmers & Merchants Bank at DeWitt,
Nebr., and was director of a bank at
Table Rock. He moved several years
later to St. Joseph, Mo., to join Ameri
can National Bank, moving up to a
vice presidency there.
From St. Joseph he moved to Lin
coln to become president of Continental
State Bank which he later consolidated
with Nebraska State Bank to form
the Continental National Bank (later
merged with First National Bank &
Trust Company of Lincoln).
During the depression years he also
served as chairman of the RFC and
FHA for Nebraska. From 1937 to
1942 he served as executive vice presi
dent and director of American National
Bank and Trust Company of Chicago,
then moved back to Omaha to become
president of the Federal Land Bank of
Omaha, retiring from that post in 1954.
Mr. Van Home served in numerous
capacities with the Missouri, Nebraska
and American Bankers Associations, as
well as with a number of business and
civic organizations. He was president of
the Nebraska Bankers Association in
1932, and served as Nebraska’s di
rector of banking in 1959 and 1960.
He is survived by his wife, Alice; a
son, John Van Home, president of
Van Home Investments, Inc., Omaha;
and two daughters, Mrs. Allen P.
(Betty) Stults, Chicago, and Mrs. Ralph
Malott, Seattle, Wash., 10 grandchil
dren and one great-grandchild.
Mr. Van Horne was a director of
several Nebraska banks during various
periods of his career. He served as
trustee of the Cooper Foundation from
1934 until his death.

O ld est F in a n c ia l J o u r n a l S erv in g
T h e C entral an d W estern States
for y o u r M A Y , 1971, reading

77th Year

No. 1289

FEATURE ARTICLES
8
12
21
22
24
26
28
36

Conventions
Bank Promotions and Changes
Apathetic Bank Supervision—Lewis E. Davids
Selling Installment Loans—Nebraska Bankers Installment Loan Panel
John McGinley, Chet McGrury, John M. Peck and Julius M. Peschel
Let’s Really Take a Look at Premiums—Jerry S. Wayt
Retailing and Banking—Keith Worthington
Don Carlson New President of Independent Bankers Group—Ben Haller, Jr.
How Newsletters Help Banks Attract and Hold Customers—Dean Wolf
STATE BANKING NEWS

41
42
49
50
57
60
62
62
67
68
70
72
74
76
81
82
90
93
108

Illinois Convention Program
You Will See Them at the Illinois Convention
Minnesota News
Twin City News
South Dakota Convention Program
South Dakota Convention Committees
Frank Duffy Convention General Chairman
You Will See Them at the South Dakota Convention
North Dakota Convention Program
NDBA Convention Committees
Montana News
Wyoming News
Colorado Convention Program
You Will See Them at the Colorado Convention
Nebraska News
Omaha News
Lincoln News
Iowa News
Des Moines News
IO W A GROUP MEETING PROGRAMS
Group 6
Group 10
Group 7
Group 8

94
96
96
100

102
104
106
110

Group
Group
Group
Group

5
2
3
4

NORTHWESTERN BANKER
306 15th S tree t, Des Moines, Iowa 50309. Phone 515— 244-8163

Chairman

Publisher

Clifford DePuy

Malcolm K. Freeland

Associate Editor
M ildred Savich

Field Representative
A I Kerbel

Ben H aller, Jr.

A s s o c ia te E d ito r
Richard R. Stumbo

Dexter Sidney

Advertising Assistant

Editor

Circulation Department
Lena Sutphin

Field Representative
Paul Masters

Auditor
Bertha Soderquist

Field Representative
Glen Hicks

No. 1289. Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Sheet, Des Moines, Iowa 50309. Subscrip
tion 50? per copy, $6 per year. Second class postage paid as Des Moines and at additional mailing office. Address all mail (subscriptions, change of
address, Form 3579, manuscripts, mail items) to above address.

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

Northw estern

Banker, M a y ,

1971

B ankA m e ric a rd
A d C am paign

You don’t just
correspond
with a bank.
You correspond
with people.

the first time in BankAmericard
F orhistory
a major national advertis
ing program supported by local bank *
advertising has just been launched.
This integrated nationwide program 4
emphasizes the responsible and con- v
servative use of credit.
The central theme of the program,
“Think of it as money,” is used in all
advertising messages to encourage con
sumers to use BankAmericard in the f
same conservative and sensible way in
which they have traditionally handled *
money. Headlines such as “Keep a
good grip on your money” and “If we
didn’t think you could handle it, we t
wouldn’t give it to you” are amplified
in copy which encourages consumers'4
to use BankAmericard as an aid in ^
money management.
The campaign was launched with
the beginning of a series of 60-second
commercials on network television. *
Full color ads are scheduled to appear^
in TIME, NEWSWEEK, LOOK,
READER S DIGEST, THE WALL *
STREET JOURNAL, and a number
of travel magazines.

People are the ones who shake hands and
smile. The ones who take a personal inter
est in your bank, your problem s, your
growth. The ones who demonstrate crea
tivity in their professional relationship.
As opposed to computers, which work
faster and more accurately than people.
At National Boulevard Bank, we offer
both. And we’re proud of both. But we like
our people better. And we thinkyou w ill, too.
So next time one of the people illus
trated here drops in, shake hands and
smile. You'll find he reciprocates.
National Boulevard — the bank for you,
the people you work for, the people who
work for you.

NATIONAL BOULEVARD
SB.
BANK OF CHICAGO ME
400-410 N. M ichigan Ave. P h one467-4100 M em berFD IC

N ew E conom ic
C on su ltin g Service
Chase Manhattan Bank, N.A. w
T heannounced
that it is establishing a ^

YEAR

Daniel G. Priske
Wee President
H. Peter De Rosier
Asst. Vice President

Glen E. Smith
Asst. Vice President
Mayo C. Walcott
Assistant Cashier

John Hartshorne
Bond Officer
RobertT. Kinder
Asst. Vice President

N o rthw estern

Banker,

May,

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

1971

new Economic Consulting Service
which is to be made available to execu
tives in business, banking and finance
generally. The new service includes:
* Quarterly economic analyses and^
forecasts for 18 months ahead, cover
ing major factors affecting business t
and finance.
* Monthly bulletins covering im
portant interim changes and developments as well as special in-depth analy
ses of business and economic problems^
of unusual importance.
* An annual projection of the
United States economy for five to ten
years ahead.
* Quarterly one-day seminars to *
discuss both economic and specific^
business problems with the bank’s eco
nomic specialists.
* Opportunity to call the bank’s
consultants by phone for counsel on
particularly urgent problems.
*
The consulting service is to be pro
vided by the bank’s Economics and4
Economic Research division, which is k
headed by John D. Wilson, senior vice
president.

•i

♦

Correspond with the bank that initiated the concept of correspondent bank
ing. And still maintains its first correspondent relationship.
Correspond with the bank that today spends more of its talents and
revenues on investment skills than any other major commercial New York
bank. Provides every usual correspondent service (including EDP accounting, cash
letters, demand deposits) with unusual care, thoroughness and personal attention.
And helps you approach your corporate and trust customers’ financial problems on
the basis of a complete and in-depth analysis of the total investment picture.
Correspond with The Bank of New York. The bank with money management
skills.

Tfc.

The Bank Of New York. The bank that manages money.
Main Office 46 Wall Street. New York, N Y. 10015

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Federal Reserve Bank of St. Louis

Member of The Bank of New York Company, Inc.

Member FDIC

Northw estern

Banker, M a y ,

1971

C O N V E N TIO N S
May 9-11— K VI 21st Northern Re
gional Conference, Statler Hilton
Hotel, Detroit.
May 12-14— North Bakota Bankers
Association, 86th Annual Con
vention, Fargo.
May 13-15— Association of Regis
tered Bank Holding Companies
11th Annual Meeting, Radisson
Hotel, Minneapolis.
May 19-22— American Safe Deposit
Association 40th National Con
vention, Pfister Towers, Milwau
kee.
May 19-21— Bank Marketing Insti
tute Regional Conference, Radis
son South Hotel, Minneapolis.
May 20-21—South Dakota Bankers
Association 79th Annual Conven
tion, Sioux Falls.
May 23-26— Bank Marketing Insti
tute, Marketing Research Confer
ence, Marriott Motor Hotel, At
lanta.
May 23-26— ABA 11th
Mortgage Conference,
Hotel, Minneapolis.

National
Radisson

May 23-28— ABA International M on
etary Conference, Munich, Ger
many.
May 24-26— AIB National Conven
tion, Astroworld Motor Hotel
Complex, Houston.
May 27-29— Colorado Bankers Asso
ciation 70th Annual Convention,
B r o a d m o o r H o t e l, C o lo r a d o
Springs.

September 26-29— ABA National Per
sonnel Conference, Century' Plaza
Hotel, Los Angeles.

June 6-9— Minnesota Bankers Assocation 81st Annual Convention,
St. Paul Hilton Hotel, St. Paul.

September 26-30— Bank Marketing In
stitute Annual Convention, Ameri
cana Hotel, New York.

June 6-12— Bank Marketing Institute,
Essentials of Bank Marketing
Course, University of Colorado,
Boulder.

October 6-10— NABW 49tb Annual
C o n v e n tio n , Fairmont-Roosevelt
Hotel, New Orleans,

June 6-18— Stonier Graduate School
of Banking, 37th Session, The
State University, New Brunswick,
N.J.
June 6-19— Bank Marketing Institute
School of Bank Marketing, Uni
versity of Colorado, Boulder.
June 7-18— Iowa Bankers Association
Ag Credit School, Iowa State
University, Ames.
June 9-12— NABW Lake-MidwestNorth Central Regional Confer
ence, Statler Hilton, Detroit.
June 10-12— Wyoming Bankers As
sociation 63rd Annual Conven
tion, Jackson Lake Lodge, Moran.

Send for details of our No-Peril,
no-risk guarantee and complimen
tary copies of:
□ The Living Picture —for busi
ness and home
□ The Farm Picture —for farm
and ranch

BfltlKStRVIGtS
Phone 217/356-1339

“First in RANKVERTISING (T.M
N ofor
r t hFRASER
w e s t e r n B a n k e r , M a y , 1971
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

October 16-20—A BA 97th Annual
Convention, San Francisco.
October 23-27— Robert Morris Asso
ciates 56th Annual Fall Confer
ence, Los Angeles.
October 24-27— Iowa Bankers Asso
ciation 85th Annual Convention,
Hotel Fort Des Moines, Des
Moines.
October 25-27— ABA National Credit
Card Conference, The Roosevelt
Hotel, New Orleans,
October 26-29— Independent Bankers
Association of America, 4th An
nua! Seminar for Junior Bank Of
ficers, Ball State University, Muneie, Ind.

June 23-25— Upper Midwest Agricul
tural Credit Council (UMACC)
17th Annual Conference, East
Glacier, Mont.

October 31-November 3— Bank Mar
keting Institute, Marketing and
the Computer, Ambassador Hotel,
Chicago.

July 11-13— Bank Administration In
stitute, 3rd Annual National Con
ference on Bank Security, Mar
riott Motor Hotel, Chicago.

November 7-10— BAI 47th Annual
Convention, Hotel Fontainebleau,
Miami Beach.

July 17-— AIB District X Leaders
Conference, Ramada Inn, Sioux
Falls.

July 18-23— Illinois Bankers Associa
tion Ag Lending School.

For better results, try “The Pic
ture” publications —newsletters
professionally created to convey
the fin ancia l p ic tu re to bank cus
tomers from a banker’s viewpoint
in a friendly, informative way.
They help you keep customers,
lu re new accounts.

October 15-16— Association of Regis
tered Bank Holding Companies
Fall Meeting, Fairmont Hotel, San
Francisco.

June 17-19— Montana Bankers Asso
ciation 68th Annual Convention,
Jackson Lake Lodge, Moran, Wyo.

July 18-21— I n t e r n a t io n a l F ly in g
Bankers Association 1971 Con
vention, Pheasant Run Lodge, St.
Charles, 11!.

Angling for
more and better
full service
customers
for your bank
???

1300 Hagan Street
Champaign, Illinois 61820

June 2-4— Illinois Bankers Associa
tion 80th Annual Convention,
Palmer House, Chicago.

July 18-23— Midwest Banking Insti
tute 5th Annual Session, Univer
sity of Minnesota Campus at
Morris, Minn.
September 2-3— Iowa Bankers Asso
ciation Installment Lending Con
ference, Hotel Savery, Des Moines.
September 6-17— Illinois Bankers As
sociation Bankers School, South
ern Illinois University, Carbondale.
September 15-16— Independent Bank
ers of Minnesota 10th Annual
Convention, St. Paul Hotel, St.
Paul,
September 22-25— AGA 45th Western
Regional Trust Conference, Brown
Palace, Denver.

November 7-12— Nebraska Bankers
Association Intermediate School
of Banking, Lincoln.
November 11-12— ABA 40th Midcontment Trust Conference, The Stat
ler Hilton, Dallas,
November 14-16—-ABA 20th Nation
al Ag Credit Conference, Hotel
Muehlebach, Kansas City', Mo.
March 14-16— Independent Bankers
Convention, Bal Harbor, Florida.

Bank Building Acquisition *Bank Building Corporation, St.
Louis, announced that its newly estab
lished subsidiary, BBC Health Care In- <
dustries, Inc. has acquired University
Associates, St. Louis, planning and de
sign consultants for health and medical
care organizations located principally ^
in five midwest states. University A s-i
sociates will become a division of BBC
Health Care Industries, Inc.

*■

“Q uig b y’s a ll h e a rt-d o e sn ’t believe in
le ttin g a cu sto m er dow n h a rd ”
V

When circumstances prevent you from
saying “ Yes” to a valued customer —
remember you can say “ Talcott'.’ We have
the leeway and resources to make money
available more easily—through a “ package
financing” plan. And we always invite the

bank we’re working with to participate up
to fifty percent as our “ secured lending
partner!' Want details? Write us for a
complimentary copy of “ Talcott and Banks!'
Want help? Talk to the man from Talcott
at our nearest office.

Commercial & Industrial Financing« Factoring

209 South La S alle Street. Chicago, III. 60604» (312) 782-9044

X
Atlanta

•

Boston

•

Chicago

•

Dallas

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Federal Reserve Bank of St. Louis

•

Detroit

•

Los Angeles

•

M iami

•

M inneapolis

•

Newark

•

New York

•

Philadelphia

•

Puerto Rico

Northw estern

•

San Francisco

Banker, M a y ,

1971

R ea ffirm s B ranch P olicy
For F ederal Savings a n d Loans
Home Loan Bank
T heBoardFederal
has reaffirmed its policy of
keeping savings and loan association
mergers consistent with those of banks
and other regulated financial institu
tions, although it has in no way weak
ened its ability to change its mind in
the future.
The Board, in a significant policy
address delivered by one of its mem
bers in Milwaukee recently flatly told
Illinois S&L executives to give up
hopes of breaking through the state’s
long-standing no-branching law for all
financial institutions, at least in the
near future.
Applications by Illinois S&Ls to es
tablish branches will either be returned
or rejected, Board member Carl O.
Kamp Jr. told stockholders attending
the annual meeting of the Federal
Home Loan Bank of Chicago.
“It serves no purpose for associa
tions to file such branch applications
at this time,” he noted.
The measure would be patterned af
ter the Illinois Banking Act, which al
lows one bank facilities up to 1,500

feet from the home office.

Earnings Ep 25%
First Bank System, Minneapolis, re
ports favorable comparisons of earn
ings, deposits, loans and resources for
the first quarter.
Income before securities transac
tions amounted to $12,746,000 com
pared with $10,172,000 for the first
quarter of 1970. At $1.74 per share,
based upon 7,313,806 average shares
outstanding, this is 25.2% greater than
$1.39 reported a year earlier when
7,292,630 shares were outstanding.
Net income totaled $13,860,000 or
$1.89 per share for the first quarter of
1971 compared with $10,244,000 or
$1.40 per share. Net securities profits
realized during the most recent quar
ter were $1,135,000 vs. $73,000 a
year earlier.
Deposits of $3.39 billion and total
resources of $4.13 billion on March
31, 1971 exceeded year earlier totals
by more than $300 million while loans
of $2.32 billion were up from $2.18
billion.

FLAIR
Dept. NB

A completely new line of giftwares
by the company that understands
women. Elegant Solid American
W alnut combined w ith brushed
stainless steel in carousels, serving
trays, snack and buffet sets and salt
and peppers. In sculptured con
temporary design, colorfully g ift
packaged. For illustrated folder write:

Foley Manufacturing Company, 3300 N.E. 5th Street* Minneapolis, Minnesota 55418
E x c it in g ideas in Pr e m iu m s , In ce nti ves , S e lf - L i q u id a to r s a n d Give-Aways

N o rthw estern

Banker,

May,

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

1971

First Bank System is a Minneapolis- *
St. Paul, Minnesota, based registered
bank holding company which owns ap- *
proximately 98% of the stock of 88
member banks with 108 offices in the
states of Minnesota, Montana, North «
Dakota, South Dakota and Wisconsin.

A d o p ts A n n u a l A u d its
First National Bank of Kansas City
will become the first major bank in the
Kansas City area to adopt the policy
of annual audits by an independent
firm of certified public accountants.
Barret S. Heddens, Jr., chairman of
the board and chief executive officer,
announced the decision of the board
of directors of First National Charter
Corporation, the bank holding company which includes First National Bank
of Kansas City and three other Mis
souri banks. He said the holding company directors had unanimously voted
to adopt the policy for all bank affili
ates.
Arthur Young & Company, one of
the leading international certified publie accounting firms, was appointed by
the board to conduct the audits on a
regular basis.

N orth C entral P r o m o tio n s

<-■
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>

*
^
+
^
*
'

F. William Stohr, vice president, an
nounces that Roger J. Pulkrabek and
Robert D. Ramaley have been named *
assistant vice presidents of the North
Central Life Insurance Company, St.
Paul. The announcements came at a
recent board of director’s meeting.
Mr. Pulkrabek currently serves as s*
financial agency supervisor for North ^
Central’s creditor insurance products
in Minnesota, North and South Da- *
kota.
Joining Mr. Pulkrabek as assistant
vice president is Robert D. Ramaley. ^
Since joining the company in 1960,
Mr. Ramaley has served in a number i
of positions beginning as regional man
ager for the development of ordinary
life products through the brokerage ap
proach. Most recently, he has served
as financial agency supervisor to the <
company’s creditor insurance accounts^
in the Twin City area.

8 8 4 to A tten d
BAI S c h o o l
A record 884 bankers will attend ,i
the 19th session of The School for^
Bank Administration, sponsored by
Bank Administration Institute at the k
Madison campus of the University of
Wisconsin August 8-20.

A
<

your
draft money
21hours
earlier
with our
One-day
Security
Collection”

Two problems face most banks conducting security
business in New York City: Delays in collecting funds.
Inadequate communications.
But not Manufacturers Hanover correspondents.
Our Security Collection Draft Procedure makes funds
available to you at least one day earlier than under
present normal operation.
Your money can work for you instead of lying dormant.
Manufacturers Hanover One-day Security Collection
also keeps you alerted periodically. On the exact
amount to be credited to your account. On complete
details involving all items returned to us.
And simplifies your bookkeeping and funds
management operations. You get just one credit and
one advice for the total of all drafts paid each day.
Additional clerical work is cut to the bone.
Any way you look at it, MHT One-day Security
Collection adds up to efficiency.
And money in the bank. Yours.
If you’d like more information, write on your letterhead.

A
It’s good to Have a great bank behind you

MANUFACTURERS HANOVER TRUST
350 Park Avenue, New York, N. Y. 10022

Member Federal Deposit Insurance Corporation

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

N o rth w e s te rn B a n k e r, M a y ,

1971

B an k P rom otion s a n d C hanges
and announcements have
P romotions
been made by the following banks
and groups.
Bank of New York: The promotions
of Landon Peters to senior vice presi
dent and treasurer and Gregory W.
Spurr, Jr., to senior vice president were
announced last month by Samuel H.
Woolley, chairman and chief executive
officer. Mr. Peters joined the bank in
1956 and now heads the treasurer’s di
vision. Mr. Spurr has been with the
bank since 1950 and concentrates his
activities in commerical lending and
overall loan and credit administration.
Mr. Woolley also announced the
election of James L. Neff and Vincent
Sauer as vice presidents. Both men are
associated with the trust division.
Central National Bank, Chicago:
Leo F. Collignon has joined the bank
as senior vice president in the interna
tional banking department. The an
nouncement was
made by Frank E.
Bauder, chairman.
M r. Collignon’s
re s p o n s ib ilitie s
will be to direct
the bank’s overa 11 international
b a n k i n g effort
w i t h particular
emphasis on the
possibility of es L. F. COLLIGNON
tablishing a for
eign office. A graduate of the Univer
sity of Minnesota, Mr. Collignon be
gan his banking career with the Bank
of California in 1953. He was senior
loan officer for the Export-Import Bank
in Washington, D.C., from 1968 to
1969. His most recent affiliation was
with Bank of America’s national divi
sion as a group vice president.

Mr. Bauder also announced the ap
pointment of Benton R. Ervington as
portfolio officer. He has been most re
cently the portfolio manager for State
Farm Mutual Insurance Company.
Chase Manhattan Bank, New York:
Promotions for one man to senior vice
president and six men to vice president
have been announced by the bank.
Robert O. Blomquist, who is responsi
ble for the bank’s branches and affili
ate relationships in Europe, the Middle
East and Africa, was named senior
vice president.
Elected vice presidents were John
W. Chappell, Richard R. Diaz, Robert
M. Hoen and Gerhard W. Schneider,
all of the international department;
Ralph W. Berrey, portfolio and invest
ment banking department, and Gary
W. Rauch, metropolitan department.
City National Bank & Trust Com
pany, Kansas City: Claudyne V.
Cooper has been elected assistant
comptroller. She joined the bank in
1942 and has since worked in several
departments.
Continental Bank, Chicago: The
election of five new vice presidents
headed a series of promotions an
nounced recently. They are Loren J.
Clark, bond department; Peter D.
Horne and Kenneth J, Rudnick, com
mercial banking department; William
D. Sullivan, operating department, and
Frederick W. Brooke III, real estate
department.
Named second vice presidents were
George G. Fleig and Jack A. Garman,
bond; George L. Barr, Joseph A. Mauger, Milton C. Neuman and David J.
Spengler, commercial; Charles F.
Davis, Jr., international; Edwin J.
Hlavka and John L. Segesta operat

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N orthw estern Banker, M a y ,

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

1971

ing, and James E. Hamilton and David *
W. Valentine, trust.
Drovers National Bank, Chicago:
Joseph H. Martin and Joseph H„ Bam- ^
berger have been appointed trust offi
cers, according to an announcement
made jointly by Board Chairman Rob
ert Lough and President Machael J.
Whelan.
They also announced the election
of six new assistant cashiers: Alfred
Mueggenborg, bond manager; Thomas
E. Bush, installment loans; Mrs. Con- *
stance E. Corcoran, new accounts
manager; Mrs. Margaret V. Katauskas,
new accounts; Robert K. Janowski,
paying teller, and Chester J. Sepiol,
clearing department.
First National
City, Bank New
York: George C.
Scott has been
n a m e d a vice H
chairman. He has^
been chairman of
the bank’s credit,
policy committee
for the past four
years and will
C. SCOTT
continue to serve
as senior credit
officer. Mr. Scott joined Citibank as a
messenger in 1929 and has served in'
the metropolitan, national and overseas,
divisions.
Zelda L. Wakeman, one of the first
women to serve as an officer of the ^
bank, has been named a vice president
— the highest rank held by a womanin the bank’s 159-year history. Miss
Wakeman serves in the international’
banking group where her position re
quires her to make several trips abroad
each year to meet with the managers <|
of foreign banks and discuss new serv-^
ices offered by Citibank. She received
her B.A. degree at Mt. Holyoke in.
1941 and her M.A. degree at Fletcher
School of Law and Diplomacy one
year later. A month after graduation I
she started with Citibank.
-A First National Bank, Chicago: Gay
lord Freeman, chairman of the bank
and of its parent First Chicago Cor
poration, told shareholders at the midApril annual meeting that the Corpo-'j
ration had $18,417,000 or $1.89 per¥
share consolidated income before se
curity transactions for the first quarter-1
of 1971, compared with $15,152,000
or $1.51 per share a year ago.

A
A

|~v

À
A

DO YOUR CUSTOMERS HAVE AN
APPETITE FOR BUSINESS IN WORLD MARKETS?
CITIBANK CAN HELP YOU SERVE THEM IN 8 3 .
Foreign m arkets are a
lot like foreign food. T em pting
b u t som etim es h ard to digest.
T h eir ingredients are often
unfam iliar. You have to get
accustom ed to them .
W h at a help to have the
guidance of a b ank th a t knows

its w ay around th e m enu.
A b ank like C itibank.
We have an 83-country
netw ork of fully-staffed
branches, subsidiaries, and
affiliates. Staffed by an
overseas team th a t really
know s w h a t’s cooking—

and where.
To help satisfy your
custom ers’ a p p e tite for
overseas business, w rite our
C orrespondent B ank D e p a rt
m ent, 3 9 9 P a rk Avenue,
N ew York, N. Y. 10022. Or
call ( 2 1 2 ) 559 -2 4 1 1 .

1 F IR S T N A T IO N A L C IT Y B A N K
M E M B E R F .D .I .C .

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

T h e L e a d e r in W o r ld w id e B a n k in g
N orthw estern

Banker, M a y ,

Ì9 7 Ì

14
Shar ehol der s
elected seven di
rectors to threeyear
terms.
Charles R. Wal
green, Jr., having
recently retired as
chairman of Wal
green Company,
did not stand for
reelection to the
E. E. CARLSON
First C h i c a g o
board. Elected in
his place was Edward E. Carlson, presi
dent and chief executive officer of
United Air Lines, Inc. Six other men
were re-elected to three-year terms.
They are: John D. Gray, chairman,
Hart Schaffner & Marx; Gaylord
Donnelley, chairman, R. R. Donnelley
& Sons Company; William B. Graham,
chairman, Baxter Laboratories, Inc.;
Gordon M. Metcalf, chairman, Sears,
Roebuck and Co.; Marshall Field, pub
lisher, Chicago Sun-Times and Chicago
Daily News, and Lee L. Morgan, ex
ecutive vice president, Capterpillar
Tractor Co.
Franklin National Bank, New York:
Seven men have been advanced from
vice president to senior vice president.
They are:

Christopher M. Ballaban, special
loan division; Richard C. Bellinger and
J. Michael Carter, investment division;
Eugene V. Colligan, corporate trust;
Halsey S. Downer, trust investment di
vision; Christopher F. Meyer, personal
trust division, and Conrad D. Stephen
son, real estate commercial loan diviLaSalle Nation
al Bank, Chicago:
The promotion of
Jack A. Gallas to
e x e c u t i v e vice
p r e s i d e n t has
b e e n announced
by Milton F. Darr,
Jr., c h a i r m a n ,
and F r a n k G.
Price, president.
In addition, Rich
ard A. Anderson
was appointed a loan officer, Robert
J. Force was named a personal banking
officer, and Joseph P. Galvan was
designated an operations officer.
Mr. Gallas heads LaSalle’s trust and
investment management group and also
carries the title of senior trust officer
and secretary. He joined LaSalle in
1952, was named head of the trust de
partment and a vice president in 1968
and become a senior vice president in
1969.
Marine Midland Bank, New York:
Directors have elected Stanley W.
Hubbel and Jerry V. Jarrett to senior
official positions, according to Crocker
Nevin, chairman.

S. W. HUBBEL

J. V. JARRETT

Mr. Hubbel, who was executive vice
president in charge of general adminis
tration since March, 1970, will become
senior executive vice president and a
member of the bank’s senior policy
group.
Mr. Jarrett, senior vice president in
charge of the United States division
since March, 1970, when he succeeded
Mr. Hubbel, will become executive
vice president in charge of domestic
banking, responsible for the activities
of the United States division, the New
York City division, the multinational
N o rthw estern

Banker, M a y ,

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

1971

division and the mortgage department.
Mercantile Bancorpnration Inc., St.
Louis: Donald E. Lasater, chairman,
has announced the elections of Robert
F. Kastelic as vice president and comp
troller, James H. Martin as vice presi
dent, and Eugene F. Bachmann as
auditor. All three men carry the same
officer responsibilities with Mercantile
Trust Company N.A., a wholly-owned
subsidiary bank.
National Boul
evard Bank, Chi
cago: J o h n E.
Guth, Jr., has
been elected to
the bank’s board
of directors. He
is data processing
division vice presi
dent and midwestern r e g i o n
manager for InJ- E- g u t h , JR.
ternational Busi
ness Machines Corporation.
Security Pacific National Bank, Los
Angeles: Officials last month an
nounced the vice presidential appoint
ments of John D. Potter, corporate
banking department; Russell P. Tom
linson, real estate finance department,
and Arlin E. Wilson, San Jose district
trust office. Mr. Wilson also is a trust
officer.
Valley National Bank of Arizona,
Phoenix: Mert G. Reade has retired,
closing his 20year career as ad
vertising director
with the state
wide banking or
ganization. Suc
ceeding him as
director of adver
tising is Warren
Goodrich, assist
ant vice president
M. G. READE
and manager of
the communications services depart
ment since 1966. James R. Walker, as
sistant cashier and manager of the
marketing research department, has
been named to succeed Mr. Goodrich
as director of communications and
market research.
Mr. Reade moved to Phoenix from a
his native Chicago, where he had a
decade of agency experience. He be
came the creative force behind many
award-winning Valley Bank advertise- ^
ments. He was acclaimed by several
of his noted peers in the advertising ^
business for “the best bank advertising
in the U.S."

SOtf>

to U«S« Treasury Dept.

In Washington, D. C.,
one of our Saturn series vault
doors was bought by the
federal government to protect
more than a billion dollars
in currency at the Bureau of
Printing and Engraving
of the United States Treasury
Department.
Your cash on hand may
not run that high, but is your
need for the finest equipment
any less?

SECURITY CORPORATION

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

3754 Boardman-Canfield Road, Canfield, Ohio 4 4 4 0 6 (2 1 6 ) 533 6777
1202 McGaw Avenue, Santa Ana, California 92 7 0 5 (7 1 4 ) 549 039 4

S p ecia l Purpose C om pu ter
O ffers C on su ltin g S ervice
Chicago-area banks have in
F ivestalled
a special purpose comput
er system to provide instantaneous au
thorization of check cashing and savings-withdrawal transactions to cus
tomers.
Banks using the system are The
Pullman Bank and Trust Co.; County
Bank and Trust Co.; Standard Bank
and Trust Co.; First National Bank of
Lockport and Olympia State Bank.

Here’s how the system works:
When a customer presents a check
or withdrawal slip, the teller keys in
the account number and dollar
amount. In less than two seconds the
teller gets a green, yellow or red light
response. A green light indicates suf
ficient funds are on deposit; a yellow
light indicates a question concerning
the account; a green-yellow light in
dicates a stop-payment on a check

O ffers “ C o n s u m e r V lew s’*
“Consumer Views,” a monthly jour
nal of personal money management
published by First National City Bank,
will soon be available to Citibank cor
respondents across the country.
The popular consumer newsletter
can be obtained at nominal cost, with
local bank names preprinted on the
masthead for distribution to local bank
customers and community groups.
The monthly four-pager features
practical articles on such subjects as
tax rules, consumer credit, student
loans and family financial planning.
Future issues will focus on life insur
ance, credit ratings, inflation and the
consumer and car buying. Each issue
also contains a column of practical in
sights that every consumer can use
called “Dollar Savers”.
Correspondents will receive issues
with their own name preprinted on the
front, suitable for immediate distribu
tion to customers on the banking floor,
to local schools, libraries and consum
er organizations.

How could we say it?

We wanted to thank bankers everywhere for the
enthusiastic way they have accepted our service.
We asked a college advertising student for an idea
or two. The poster you see above is the result.
A little wild, but it does express the way we feel.
And why not? We opened for business on
February 1, 1969, with some new ideas about
banking insurance.
We now insure nearly 1500 banks in 25 states and
have tripled our staff—which proves that banking
people are receptive to new ideas.
So, THANK YOU for helping us grow so fast.
We'll also try to show our appreciation in another
way—by continuing to give you the best service
possible.
FINANCIAL INSURANCE SE R V IC E , INC.
2 3 0 0 EAST DEVON AVENUE • DES PLAINES, ILLINOIS 6001B •

Digitized
N o rfor
t h wFRASER
e s t e r n B a n k e r , Mary,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1971

written on the account and a red light *
shows a closed or non-existing ac
count, or insufficient funds.
When a yellow light response oc
curs the teller refers the transaction to
a supervisor who is able to assess the v
computer directly and have the full ac- ^
count status immediately displayed on
a special administrative terminal. From
this terminal, account information may
be instantly added to the computer file.
The computer can store information
on 500,000 accounts and process up
to 5,000 inquiries an hour. New infor
mation on customer accounts is en
tered into the computer each day.

3 1 2 /2 9 7 -4 6 6 0

N a m e F D IC C ou n sel
Chairman Frank Wille of the Fed- <
eral Deposit Insurance Corporation f
announced the appointment of William
E. Murane as general counsel of the
corporation. As general counsel, Mr.
Murane will have primary responsibil
ity for the entire operation of the legal „
division of the corporation.
Mr. Murane has been deputy g e n e r i
al counsel of the Department of Com
merce for the past two years where he
has had major responsibility for ad
ministering that Department’s 120man legal staff.
Prior to becoming deputy genera^
counsel in the Department of Com
merce, Mr. Murane was a partner in >
the Denver law firm of Holland &
Hart.

Mr. Traveling Credit
takes the risk out of inventory loans
When Douglas-Guardian puts Mr. Traveling Credit to work for you,
it’s just like taking your bank vault to your customers. We establish a
Field Warehouse where it’s most convenient to store limitless amounts
of raw or finished products. With our special system of auditing, your
loan is perfectly secured. We cut the red-tape, too, and reduce the pa
per work for borrower and lender. You see . . . there IS a difference in
field warehousing service. We have the years of experience to back up
our claims of superiority.

Douglas-Guardian Warehouse Corporation
P. O. Box 52978, New Orleans, La. 70150, Phone (504) 523-5353
Offices in 15 principal cities

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

N orthw estern B anker, M a y ,

1971

What is
MorAmerica?
MorAmerica Financial Corporation is the new name
of our holding company —formerly, The Morris Plan
Company of Iowa. The significance of the broadlybased name developed from the diversification pro
gram which projected the company into almost all
facets of financing. Our company expansion includes
Business Investment, Leasing, Consumer Credit,
Banking, Real Estate Development and Nursing
Home Facilities. In addition, the operating areas of
these diverse activities grew beyond the boundaries
of Iowa into adjacent states, and, in some cases,
throughout the midwest.

N orthw estern Banker, M ay,

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

197 1

x
A-

Expect a little more in your bank portfolio service,
when you’re dealing with Chase.
Sure, we’re located in the very heart of the money market. But
that's not the only reason correspondents can expect a little
more from us.
Our investment advisors put all their skills toward your
particular needs. Our huge communications network provides
a constant updating of vital information. And our sophisticated

electronic data processing systems enable us to rapidly explore
the consequences of projected portfolio moves. For further
information, contact your Chase representative or call Ralph
Berrey at (212) 552-3851.
Chances are, you’ll wind up getting a lot more when you
deal with Chase.

You have a friend at

THE CHASE MANHATTAN BANK I f
1 Chase Manhattan Plaza. New York.N.Y.10015/Member F.D.I.C.

N o rthw estern

Banker, M a y ,

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

1 97 1

around money the finest is
AUTOM ATIC

COIN W R A P P E R

A m o unts and d e n o m in a tio n s a u to m a tic a lly in d ic a t e d by
p a te n te d “ re d bo rd ered w in d o w s ” . A m o u n ts in window s
alw ays in reg ister . . . e lim in ate s m istakes. A ccom m odates
all coins fro m lc to $1.00.

TUBULAR

COIN

WRAPPER

Especially designed fo r m ac h in e fillin g . . . a real tim e-saver.
Packed fla t. In s ta n t p atented “ Pop O p e n ” action with fin g e r
tip pressure. D en o m in a tio n s id en tified by color c o d i n g . . . 6
d iffe re n t stan d a rd colors.

RA IN BO W

COIN W R A P P E R

O U Z IT A L L COIN

WRAPPER

BANDING

COIN

WRAPPER

K W A R T E T COIN

WRAPPER

W raps 4 d e n o m in a tio n s in h a lf size packages. A m in ia tu re o f
th e po pular "A u to m a tic W ra p p e r” . . . 25c in penn ies, $1.00 in
nickels, $2.50 in dim es, $5.00 in q u arte rs .

FEDERAL

BILL S T R A P

P ackage contents c learly id e n tifie d on faces and edges by
color coded panels with inverted and reverse figures. M a d e
o f extra strong stock to assure un broken deliveries. O nly pure
d e x trin e g u m m in g used.

C olo r coded for quick, easy id e n tific a tio n . Red for pennies . . .
blue fo r nickels . . . green for dim es . . . to in d ic a te q u a n tity
and d e n o m in a tio n s . . . e lim in a te s m istakes. Tap e re d edges.

Extra w id e . . extra strong. D esigned for areas w h ere halves
are w rapped in $20.00 packs . . . “ red bordered w in d o w ” fc r
ease o f id e n tific a tio n . A ccom m odates $ 20.00 in dollars, $20.00
In halves. T ap ered edges.

OLD ST Y LE

Basic coin w ra p p e r in extra strong k ra ft stock. P rinted in 6
d iffe re n t stan d a rd colors to d i f f e r e n t i a t e d e n o m in a tio n s.
T r ip le d e s ig n a t io n t h r o u g h colors, p r in t in g and letters.
Tapered edges.

COLORED

BILL S T R A P

Entire strap is color coded to id e n tify d e n o m in a tio n . P rinted
a m o u n t appears on top and bo ttom of package. Extra w ide
for m arkin g and stam p in g . Extra stro ng stock fo r safe d e live ry
and storage. Pure dextrine g u m m in g .

STRAPS

Id eal for packing currency, d epo sit tickets, checks, etc. . . . do not bre ak
or d e te rio ra te with age. Size 10 x \ inches and m ad e of strong brown
K raft stock w ith gu m m e d end for ease of sealing. Packed 1000 to a carton .

S E E

L.
Northw estern

DOWNEY

Banker, M a y ,

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

1971

YOUR

D E A L E R

COMPANY

SEND

FOR

F R E E

HANNI BAL,

S A M P L E S

MISSOURI

By LEWIS E. DAVIDS
Hill Professor of Bank Management
University of Missouri
Columbia, Missouri

OR it is you, the regulated, who
suffer most from inefficient, over
ly restrictive and apathetic super
vision,” are the fighting words by a
man who should know what he is saying— C. W. Culley, president of the
Conference of State Bank Supervisors
v (the organization was formerly known
as the National Association of Super
visors of State Banks).
For a commercial banker to have
used such strongly critical phrases
would be to incur the wrath of the pub
lic and politicians not only on himself
but on his bank as well. But C. W. Cul> ley, or, as he is called by his friends,
“Bill” Culley, used those and similar
adverse terms to describe to bankers
and supervisors attending the recent
district meetings of the state bank sur- pervisors association why a revolution
in bank supervision is needed.
Why is bank supervision so casti
gated? And, more important, what can
be done about the defects in bank su
pervision, especially at the state level.

-f-

Reasons
Here are some of the contributing
reasons: In 1968 some 15 state bank
supervisors made $15,000 or less per
vear. In the same year chief examiners
•A in 12 of our 50 states received $12,000
or less per year. The lowest paid chief
examiner received only $8,940. Fringe
benefits were comparably low, but just
imagine what senior examiners and
junior examiners in those states re
ceived. Obviously, few college trained
people are or will be motivated by such
¡k salaries.
It is true that job satisfaction is
probably more important than strictly

Apathetic
Bank Supervision

and solely financial remuneration but
at those preceding mentioned salaries
it is difficult to recruit new staff and
even to retain staff once it is trained.
For many of my banking students
at M.U. I do recommend that bank su
pervision is one of the best ways to
learn banking and to advance more
rapidly in the commercial banking
field. I suggest to a number of them
that they consider working as an ex
aminer prior to entering commercial
banking. My bank supervisory friends
do not particularly like the latter part
of my suggestion but I point out to
them that if the bank supervisory job
proves challenging and reasonably fi
nancially competitive that they will not
experience excessive labor turnover.
Yet, the fact is that at the state bank
examiner level there is on the whole
a higher than desirable turnover of
staff.
Travel, Salaries Are Bad
Increasingly, as I counsel my bank
ing students on employement opportu
nities and career development there is
a noticeable reluctance on the part of
the students to option for jobs such as
examiners which call for extensive
travel and periods away from home.
Part of this reluctance is logical— to
day at least one-fifth of undergraduates
are married and within a short period
after graduation this ratio shows a dra
matic increase. They frankly recognize
that such travel puts a severe strain on
their family life. Another factor, para
doxically, has been that bank salaries,
especially in the larger banks, have
shown dramatic increases. In some
large cities, bank salaries are actually

higher than other white collar type
jobs. This has tended to stimulate the
separation rate of low paid state bank
examiners and similarly makes initial
entry into the supervisory force less de
sirable. Thus, the bank supervisors are
whip-sawed on both sides.
A recent survey of state banking de
partments had over half (28) report
that they needed additional examiners
“to effectively perform the basic task
of examining banking institutions, not
to mention the many other largely un
related supervisory functions.” In fact,
only 15 state banking departments, or
less than one in three, indicated they
had a sufficient number of examiners
to perform their statutory functions.
From the point of view of a number
of bankers and supervisors with whom
I have discussed the situation there is
the recognition of the fact that over
half the banks in our nation are auto
mated with the service of computers
and the proportion of bank examiners
who are objectively judged as highly
skilled in computer program examina
tion is very low.
This is partly a function of salary
scheduling in a new field and com
pounded by the fact that the definitive
“book” on examination of banks which
are automated still has to be written.
It’s simply because with each new gen
eration of computers additional expen
sive and time consuming training in
examination is necessary.
Bill Culley (as is this writer) is
known to be enthusiastic about the
long-range possibilities of using these
same computers to perform financial
BANK SUPERVISION , . .
(Turn to page 86, please)
Northw estern

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

Banker, M a y ,

1971

Marketing
Ideas

Selling
Installment
Loans
P a n e lists g iv e th e ir id ea s
f o r in c r e a s in g sales
a n d u p g r a d in g o p e r a tio n s
to i m p r o v e p r o fit

MEMBERS of the Installment Credit Seminar panel conducted
by the Nebraska Bankers Association were, left to right: Seated
— Mel Adams, pres., Keith County Bank, Ogallala, moderator;
Chet McGrury, v.p., Beatrice Natl. B&T, Beatrice, and Julius
M. Peschel, a v.p., 1st Natl. B&T, Lincoln. Standing— John
M. Peck, v.p., 1st Natl. B&T, Columbus, and John McGinley,
v.p., 1st Natl., Hastings.

Northw estern

Banker, M a y ,

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

1971

|
THE FOUR M E N shown in the picture below with their panel
moderator addressed the recent Installment C re d it Seminar conducted
in Omaha by the Nebraska Bankers Association. The following digests
of their talks outline the sales and profit-oriented ideas they gave
their audience. The tone for this approach was set by the moderator,
who stated in his introductory remarks: "Installment credit is the
commercial bank's medium of communication with the masses. This
department, if properly merchandised, can open the business door to
almost every department of your bank."

G oals f o r P r o fit
JOHN McGINLEY
Vice President
First National Bank
Hastings, Nebraska
r F he question naturally arises, “What’s in it for us? What
can installment lending do for our bank?” This is pri
marily the same question posed by American bankers in
the middle 1930's when installment lending was looked
down upon as unbefitting a bank’s portfolio.
*
First of all, installment lending enables us to better serve
our community and area. It has significance socially, eco
nomically and politically.
1. Socially— installment credit has helped to lift the
standard of living of many to the level that was once avail
able only to the privileged few.
2. Economically— installment credit has been a neces- <
sary factor in building and maintaining our highly indus- *trialized economy and is essential to its continued expan
sion and growth.
3. Politically— the extension of installment credit to mil
lions of American families by banks has caused these peo
ple to realize that banking is interested in helping them as
individuals, thus creating greater confidence and a more
ardent belief in our free enterprise system.
One of the first questions that comes to mind is the prof
itability of the operation. No one will deny that with the
normal add-on rates, installment lending is profitable. A
well-run operation will add significantly to the earnings of
your bank.
One of the most significant things that installment lend- -r
ing does is to bring people into your bank. People not only
to come in to arrange for a loan, but many times come in ^
personally each month to make the monthly payments on
these loans. These important contacts enable us to sell
them the other services of our bank. It has often been
said that bankers, on the whole, are lousy salesmen. I be
lieve this might be more true than we would care to admit. *
Let’s take a critical look at ourselves.
• How many of our employees— and I’m speaking here
of people in the installment loan department— are con
sciously aware that they should be selling the services of
the entire bank? Are they being trained in the methods
of cross-selling? Are we asking our installment customers ^
for their checking accounts. Sometimes that’s all that it
takes but the customer does have to be asked.
• Do we sell our mortgage department? Many of the
people we meet are young couples who perhaps are, or
soon will be, in the market to buy a new home. Do we sell
them on the idea that your bank is the place to take care
of all their banking needs.
• With these same contacts are our employees selling
safe deposit boxes, Christmas Clubs, regular savings ac
counts and certificates of deposit? If they aren’t, we are

23
* missing a great opportunity to make our bank grow and
prosper.
In summary:
1. Installment lending is good for the people of your
community. It builds the image of an aggressive, energetic,
* vibrant bank.
2. It adds to the profits of your bank and also makes for
liquidity in your loan portfolio.
3. It brings people into your bank and gives you the op
portunity to employ cross-selling techniques to sell the oth
er services of your bank.— END

C ollection Finesse

CHET McGRURY
Vice President
Beatrice National Bank & Trust Company
Beatrice, Nebraska
the most valuable attribute an installment loan
P robably
collector can have is a realization that repossession is

y
**

^
>
q,
T

of a retail customer, dealer, or third party without the ex
press approval and permission of your superior.
11. Don’t fail to include courtesy among your collection
tools. Persistence and firmness can be accompanied by
courtesy. Sarcasm and insults may relieve your feelings in
a trying situation, but they have no value in concluding an
account.
12. Don’t indulge in abusive language in dealing with de
linquents. The legal definition of assault is broad enough
to include loud and abusive language. This has been used
as grounds for a damage suit as constituting “intent” to in
flict immediate injury on the person of a delinquent.
13. Don’t forget there is a time and place for everything,
especially for discussing past due accounts with our cus
tomers. Banks have been sued for malicious persecution
as a result of the collector humiliating a customer before
a group of guests or in the presence of unfriendly witnesses
who were willing to color their testimony in court.
14. Don’t use the words “skip” — “fraud” — “conver
sion” —• “deadbeat” — “delinquent” — or the phrase
“sold out of trust” — in conversations or written commu
nications which refer to dealers or retail customers.
In closing, I think you are very aware of the fact that
the collector plays a most important part in the success of
the installment loan department. Very often you are the
only contact the retail customer has with the bank, and to
these customers you are the bank. The impressions you
create will, in many instances, determine whether the bank
will retain or lose the goodwill of a retail account or of a
dealer. In the pursuit of your duties you must display an
even temperament, tact, and firmness of decision. You
must have the maximum consideration for the feelings of
others, consistent with the results that must be obtained
in each individual circumstance. — END

failure to complete a contract. This type of collector will
use repossession as a final resort — only after he can find
no other solution to the problem.
The legal force of our lien instruments — our contracts
■
—• makes it unnecessary for any of our collectors to be
other than politely firm. We cannot excuse any use of
threats or harsh methods on the part of our collectors. The
goals of the bank can best be served by a firm, intelligent
and unemotional approach to each collection situation.
Generally speaking, criminal or civil actions against fi
nance companies and banks are caused by methods which
are outrageous or intentionally severe. In any event they usually encompass collection situations which have been
caused by thoughtlessness on the part of a collector.
The following is a list of collection “don’ts” which have
caused trouble for others in the past:
Three S ales Id ea s
1.
Don’t threaten a delinquent with repossession unless
JOHN M. PECK
you intend to repossess, and make certain that the circum
Vice President
stances warrant the action.
First National Bank and Trust Company
2. Don’t leave verbal “pay or else” messages with others
Columbus, Nebraska
to be communicated to the customer later.
3. Don’t discuss the customer’s delinquency with his em
hree large bank ideas successfully used in the smaller
ployer, neighbor, or any other person who has no financial
bank are:
interest in the contract.
I
Indirect Mobile Home Lending.
4.
Don’t place messages in the customer’s mail box. Make
A.
Local bank advantage:
certain any written messages are placed in a properly
1. Personal contact with dealer.
sealed envelope.
2.
Personal knowledge of customer in many in
5. Don’t use language in any written or oral communica
stances.
tion which could be considered libelous or slanderous.
3. Knowledge of need for low cost housing.
6. Don’t lose your temper when you are faced with a bel
4. Ease of floor-plan checking.
ligerent debtor.
B. Banker must have knowledge of:
7. Don’t fail to live up to any agreement made with the
1. Competitive rates.
customer, such as a promise to hold the collateral in stor
2. Money cost.
age for a certain time.
3. Caliber of dealer.
8. Don’t repossess when it is necessary to use force. The
4. Caliber of purchaser.
right to peaceably repossess does not allow threats of vio
5. Possibility of collection problems.
lence or trespassing on the customer’s property against his
II Computer Use In Installment Lending.
will.
A. In-bank cooperation:
9. Don’t fail to thoroughly search repossessed cars for per
1. Management must see the need.
sonal property nor to make a complete written inventory,
2. Older employees must be willing to change.
witnessed by a third party, of all personal property found
therein.
SELLING IINSTALLMENT LOANS 7 .
10. Don’t sign any paper or any document at the request
(Turn to page 84, please)

A
a.

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Federal Reserve Bank of St. Louis

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Banker, M ay,

1971

24
hen looking at the state-of-the-art (bank premi
ums) as it exists today, we see many divergent at
titudes and positions among the banks, legislative
bodies and regulatory authorities. Also of concern are the
attitudes of our customers and various publics, the image
of our bank and that of the banking industry. Perhaps the
only known position is that of the premium suppliers—
they’re all for it— because, in short, they’ve not only been
able to figure out the economics of the situation but they
also feel they have figured out the banker.
In an article which appeared in Premium Merchandis
ing, whose issue was devoted to the “First in Depth Study
of Bank Premiums,” a veteran supplier of 20 years to the
banking industry was quoted as saying: “Bankers are like
a flock of sheep when it comes to premium programming
. . . It may be difficult to sell a program to a bank, but
once it is successful, rival banks in the area flock to you
to initiate the same program.”

Headlines Result
To a degree there’s a lot of truth in this statement. If
this suggests that banks were running scared and were pur
suing a “me-too-ism” approach and philosophy— I would
concur— but that was two years ago. In part, that is what
has precipitated the divergent attitudes which exist today.
As a result, we are faced with headlines like these:
“Fed places restrictions on promotional giveaways”
“Premium ceilings to be hiked for new savings accounts”
“Premium offers of banks embed”
“Banks warned against advertising retail price of de
posit premiums”
“Patman seeks ban on broker deposits, kickers, give
aways”
This situation has not only sparked great controversy
within banking, but it has resulted in the introduction on
July 28, 1970, by Chairman Wright Patman of the House
Banking and Currency Committee of H.R. 18676, or the
so-called “Safe Banking Act of 1970.”
Legislation Aims
The legislation would prohibit banks from:
1. Acquiring brokered funds.
2. Using gift giveaways to attract deposits.
3. Engaging in equity participations on loans.
No hearings were held on H.R. 18676 during the 91st
Congress. However, Representative Patman has stated that
he intends to introduce the legislation again in the 92nd
Congress and to hold hearings early in the session.
The primary criticism of brokered deposits is that they
have been a contributing factor in a number of recent bank
failures. According to the FDIC, at least nine of the 34
banks closed since 1965 have been involved in brokered
deposit arrangements. While the primary purpose of the
bill is designed to prohibit the practice of brokered depos
its, it’s important to note that the outright prohibition may
also prevent banks from using any form of incentive pro
gram among employees to promote new deposits and the
use of banking services. In effect, all of these practices
might well be prohibited under the bill, unless it is amend
ed to grant regulatory authority to make exemptions.
Prohibition of Giveaways
It’s important that we should recognize Mr. Patman's
position was developed during a period when banks them
selves were attempting to develop their own philosophy
and posture in this area, and it was also a period of tight
N orthw estern

Banker,

May,

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Federal Reserve Bank of St. Louis

1971

LeVs R ea lly
money and at a time when many banks nationally were involved in premium programs to develop deposits. Particu
larly singled out were the New York banks and mutual
savings banks who were aggressively competing for new
depositors to the tune of $40 million in advertising during
the month of July in New York City alone.
In summary, the argument for passage and primary
criticism of bank giveaway programs are:
1. They are defeating in the long run.
2. They succeed in causing deposits to flow from one
institution to another.
3. Little or no new deposits are generated.
4. The banking industry is worse off as a whole by
spending a great deal on advertising and premiums.
5. Such programs only precipitate counter programs
by competition.
6. Larger banks gain at the expense of the smaller
banks— because they’re better able to afford costly
programs.
7. Existing regulations governing cost of gifts are gen
erally felt to be ineffective.
While critics appear to point to the New York situation
as the case in point and the reason for the legislation, this
evidence alone or even this evidence would not be conclusive. For example, the actual customer chasing of premi
ums from one bank to another has not been proven nor
have figures been presented to support the claim that such
programs will generate little in new deposits.

¥
*

4“
F
„

ABA Study on Premiums
However, figures have been presented in the 1968 study
conducted by The American Bankers Association, entitled,
“Customer Premiums—How to Use Them as a Bank Mar
keting Tool,” which suggests that bank customer programs
are and can be a profitable marketing tool. The A.B.A.
study was not compiled to advocate the use of customer ~Aincentive by banks. Rather, it was designed to provide
management with the facts necessary to make sound deci
sions regarding incentives.
Highlights of that study are summarized as follows:
1. Preponderant experience of the banking industry in
dicates that customer premiums are a profitable mar
keting tool.
2. More than one in four banks has tried premiums-— A
of these, only one in twenty has dropped premium
programs.

Marketing
Ideas

! Take a Look a t P rem ium s
A

3. Premiums do not harm a bank’s standing with the
public.
4. Premiums-induced deposit accounts compare favor
ably with normal walk-in business:
* Opening size
* Dollar growth
* Longevity
5. Most frequent cause of failure can be attributed to
using premiums that lack customer appeal.
6. To be successful, a customer-incentive program must
combine careful planning and detailed organization
with effective promotion.
Look at Successful Program
At this point let us look at one such program which was
run during the summer of 1970. The purpose of this re
view is to relate directly to the arguments or points criticiz
ing premiums. The evaluation will consist of looking at the
program
results in terms of the source of funds, type ac
X
counts developed, account retention and program costs.
In order to set the stage we’ll take a quick moment to re
view the background and banking situation which existed
4at the time.
• Background of the Bank: First & Merchants National
T
Bank is a 106-year old banking institution located in Rich
mond, Virginia, with $760 million in total deposits, and
66 branch offices located in 22 cities serving the state.
• Situation: F&M introduced daily interest, continuous
r compoundings on its regular savings accounts, state-wide,
on April 27, 1970, as a means of increasing customer base
and deposits. This program achieved its initial objectives,
in that: (1) Net account growth increased threefold over
the previous year. (2) The number of accounts closing
was reduced by 57 per cent during the period. In order to
insure this continued growth rate and to meet competitive
pressures, it was recommended that F&M offer a self-liq
uidating customer premium as a means of attracting new
deposits and customers. (It might be noted that the bank
4. had previously never offered a customer premium.)
After intensive study and evaluation, a high-fashion
modacrylic wig was selected as the premium which would
provide the greatest appeal and interest, and one which
would achieve the bank’s objectives of increasing deposits
A
and customer base.
Initially, the program was approved to be introduced
x
on a test basis in two selected regions. Assuming a success
ful introduction of the program in these areas, it would
*

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Federal Reserve Bank of St. Louis

By JERRY S. WAYT
Vice President
First & Merchants National Bank
Richmond, Virginia
From an address delivered at the
American Bankers Association’s
National Marketing Conference
held recently in Dallas, Texas

then be introduced state-wide. The duration of the pro
gram was scheduled as eight weeks from the introduction
date in each profit-center.
• Conditions of the Premium Offer: The premium was
offered under the following conditions and pricing struc
ture:
TYPE ACCOUNT &
DEPOSIT REQUIREMENT

PURCHASE PRICE
TO CUSTOMER

Savings (New Accounts or Added Deposits)
Deposits of: $100 or more ........... $9.95 plus tax
$1,000 or m o r e ........... $5.00 plus tax
$5,000 or more ........... Free
Checking (New Accounts Only)
Deposits of: $100 or more ........... $9.95 plus tax
• Program Objectives: The program was designed to
meet the following objectives:
1. Increase the savings deposit growth rate (already in
creased threefold over previous periods through the
introduction of daily interest continuous compound
ing and savings re intermediation) by 50 per cent.
2. Attract new accounts at a rate 50 per cent over cur
rent levels.
3. Soften the image of the bank.
4. Create a high level of awareness and involvement on
the part of the customer contact staff.
• Program Results: Experience of F&M presents a
sharp contrast with the primary criticism of bank give
aways. First of all, we did not find the program self-defeat
ing, nor did we find that the program precipitated a rash
of counter programs by the competition. We did find, howA LOOK AT PREMIUMS

777

(Turn to page 34, please)
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Banker, M a y ,

Ï 971

26
are necessarily dominated by computers. I don’t have to
tell you there are many, many customers today who would
rather deal with people than computers. The store that
knows its customers and is willing to give extra service has
a real place in the future in my opinion. I’m sure the same
thing applies to small banks.
What are the facts of life that we retailers face as we
look to the future in our competitive struggle?

Marketing
Ideas

F
X

Retailing
and
Banking
By KEITH W ORTHINGTON

T h e a u th o r is vice p r e s id e n t o f
D r e y fu ss & S o n Inc., D a lla s
a p r o m i n e n t d e p a r t m e n t s to re
chain in that city. T h is
a rtic le is a m a jo r e x c e r p t
f r o m his a d d r e s s to th e rec e n t
N a tio n a l M a r k e tin g C o n fe r e n c e
c o n d u c te d b y th e
A m e r ic a n B a n k e rs A sso c ia tio n

in Dallas

believe a retailer’s greatest challenge is to attract those
people who want to be his customers, but for one rea
son or another shop elsewhere. Why don’t they come
in? Are we too big or too small? Too stuffy, too imperson
al, too high-priced or too cheap, too conservative or too
far out?
Competition has forced us to seek answers to these very
relevant questions. Somehow I think we overlook the obvi
ous. We just don’t ask our potential customers to come to
us often enough. Sometimes when leaving a luncheon, I’ll
say to an acquaintance, “Don’t you want to go back to the
store and replace that tired looking suit?” You’d be sur
prised how often it works. Perhaps no one bothers to ask.
Unfortunately, our business has tended to become im
personal as we have built branch stores. We don’t see our
customers as often. Yet we all like personal attention and
prefer to deal with someone who understands our personal
needs. For this very reason, I think the small retailer has
a greater opportunity today than ever before. He knows
his customers personally and has a great advantage in that
he can render personal service.
In this day of merger and acquisition, the giant stores

N o rthw estern

Banker, M a y,

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Federal Reserve Bank of St. Louis

1971

10 Potentials for Change
We are told that the 18-34 age group will increase by
16 million in the next 10 years— the largest proportionate
rise in the population. Dr. John W. Wingate, a close ob
server of the marketing scene for many years, gives us his
views on how consumers and potential store executives in
this age group will affect retailing’s changing environment.
^
1 There will be less complacency with misleading ad
vertising and selling practices.
^
2 There will be a greater demand for quality and serv
ice, for the quality of living.
*
3 There will be less emphasis on saving and accum
ulation to buy later. More on credit to buy now. I’m
sure you’ll be happy to know that bank credit cards
are becoming a way of life, particularly with young
families. We opened a new store this past year near -y I
the Six Flags Amusement Park in Arlington. We
■
did not honor credit cards of any kind at that time
and we know we missed business because of it. An
M
area of this kind attracts many tourists and visitors
who simply have no good reason to open a Dreyfuss charge account. Nor would it be good business
for us to set up the accounts for a one time charge.
The bank card has solved this problem.
^
4 There will be increasing segmentation of customer
demand— more boutiques and style shops to re A
move the sameness found in so many competing
stores. As we pinpoint our merchandising efforts 4 .1
to a specific group, I think we’re also going to have
to change our ways to attract capable sales people.
Young people are going to work and shop in stores
where it’s fun to work and shop. Young people be
lieve that work can be fun as well as productive and
they’re probably right.
5 There will be increasing emphasis on casual clothes
for business as well as leisure hours. What is the
prevailing attitude in your bank regarding proper
dress?
6 The atmosphere in stores will become more impor
tant. Warmth and color will be essential ingredi
ents.
^
7 Potential young executives will be asking us what
are we doing to employ, train and promote disad
vantaged groups and what are we doing to improve
our community. Retailers will have to be good citi
zens. There will probably be an even greater ten
dency to shop in stores where management is in
volved in civic and cultural projects which benefit
the total community. We can no longer separate
ourselves from the community at large.
Dr. Wingate says there will be less respect for
rugged individualism, more for teamwork and co
operation.
RETAILING AND BANKING . . .
(Turn to page 38, please)

ORIGINAL
WATER
COLORS!
OF YOUR OWN
COMMUNITY]
b ea u t ifu lly I
p r in t ed !
AND FRAME

Decorative art has become immensely popular in recent years.
Now, your bank can tap this potentially enormous resource as a
premium promotion medium. But your bank goes one step further
than any other source of art. You may offer scenes of your own
community, custom-painted to your order! We send a highly qualified
artist into your community. After you make your selection of sub
jects, the original watercolors as approved by you are then repro
duced in high-quality color on textured paper. Then, the prints are
assembled in specially-designed frames, mats and transparent
glass-like protective covers. Packaged in sets of three complete
picture-mat-frame-covers, they are ready to offer your public.

PIETE1Y
LF-UQUIDA71NG:
DUNG
M:

LEMENTS ARE
ED,

EADi

The quality of our art and print reproduction are absolutely
first line. But our unique picture frames are integral parts of a
top-grade product. Made of the same molded plastic used on the
finest home entertainment products (stereos, color TV sets, etc.),
they are virtually indistinguishable from expensive wood. But unlike
wood, our frames are designed to last almost forever. A specially
designed flush panel at the back, molded as one unit, provides a
snap-in base for picture, mat and protective cover and seals the
picture away from dust or damage. Outside frame dimensions are
121/2 " x 101/z ". Picture area is 10" x 8". And the cost is only $10.50
per set of three complete pictures in frames, packaged and ready
to go. At this low price, you can easily develop a self-liquidating
premium program . . . even afford to give away single pictures!

JL.
jk

Peoples Trust Bank will send to your city
an artist of the calibre of James McBride.
A nationally-recognized watercolorist, his work
is included in Artists/USA, and has won many
national awards. If you like, we will provide the
necessary graphic elements for your selected
watercolors so that you can offer coordinated
personal checks to your customers.
For complete information and a complimentary
sample picture, call Roy Cleland or Chuck
Diamond collect at (219) 743-0383, or write to
their attention, on your bank letterhead. Our
Limited Edition print program is offered exclu
sively to one bank in each community.

Peoples Trust Bank
913 South Calhoun Street
Fort Wayne, Indiana 46802

(the people who made wigs
famous in the banking field!)
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Federal Reserve Bank of St. Louis

Banker, M a y ,

1971

NEW OFFICERS— Donald M. Carlson, 53,
(center) of Elmhurst, Illinois, newlyelected president of the Independent
Bankers Association of America, re
ceives a congratulatory handshake from
his immediate predecessor,
Rod L.
Parsch of Lapeer, Michigan. Mr. Carl
son is president of the Elmhurst Na
tional Bank and Mr. Parsch is presi
dent of the Lapeer County Bank & Trust
Company. Looking on, from left, are
First Vice President H. L. Gerhart Jr., 41,
president, First National Bank, Newman
Grove, Nebraska; Treasurer Robert L.
Ferril, 42, vice president, Wyoming Bank
& Trust Company, Buffalo, Wyoming, and
Second Vice President Fred T. Brooks,
43, president, Merchants State Bank,
Dallas, Texas.

Don Carlson New President of
Independent Bankers Group
ndependent bankers were told re
cently to “Get your state laws in
shape to protect yourselves.”
This admonition was sounded by Rod
L. Parsch, outgoing president of the
Independent Bankers Association of
America to delegates attending the
41st annual meeting at Hotel Radisson in Minneapolis. More than 1,600
persons participated in the meeting.
Mr. Parsch is president, Lapeer Coun
ty Bank & Trust Company, Lapeer,
Mich.
He urged independent bankers to
review state laws controlling holding
companies and see that those laws
based on the 1956 federal holding
company law are up-dated to con
form to the new 1970 federal law.
The association’s 42nd annual
meeting will be March 14-16, 1972,
at the American Hotel in Miami
Beach, Florida. A three-year freeze
on multi-bank holding company for
mations and acquisitions was called
for by delegates. The convention res
olution asked Congress to accompa
ny the multi-bank holding company
freeze law with a Congressional study
of the possible total elimination of
multi-bank holding companies through
a death act, similar to legislation en
acted in the 1930s which dismantled
publ'c utdity holding companies.
“We have learned from sad experi
ence that multi-bank holding com
panies concentrate control of money

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Federal Reserve Bank of St. Louis

1971

By BEN HALLER, JR.
Editor
and credit and are destructive of com
petition as the great regulator in
banking,” the resolution stated. “The
federal Bank Holding Company Act

THE TWO surviving founders of the Inde
pendent Bankers Association of America
got together during the association’s 41st
annual convention in Minneapolis March
29-31. At left is Ben OuBois of Sauk Cen
tre, Minnesota, who was the IBAA's ex
ecutive director for 30 years until his re
tirem ent in 1962, and at right is Norman
Tallakson of Willmar, Minnesota. They
were among 28 bankers who gathered at
Glenwood, Minnesota, on May 9, 1930,
to discuss their chances for survival in
the banking business. Mr. DuBois is
board chairman of the First State Bank
of Sauk Centre, and Mr. Tallakson is a
director at the Bank of Willmar.

of 1956, which was designed to re
strain holding companies, has been a
complete failure. Since its enactment,
resources controlled by these compan
ies have grown from $14 billion to
over $62 billion, and their growth is
proceeding at a faster rate than ever
before.
“They are not increasing loanable
funds, but are merely shifting control
of these funds to fewer and fewer
hands.’’
Ultimately, the I BAA resolution
stated, multi-bank holding compan
ies will centralize control of banking
in this country, and will accelerate
concentration in commerce and indus
try, as the European experience has
shown.
“There are no benefits to the public
derived from multi-bank holding com
panies which are not vastly offset by
their destructive effect upon banking
competition and upon the economy,”
the resolution said.
Protest Small Banks
In a related resolution the 1BAA
said that the intent of Congress in
adopting one-bank holding company
control legislation last year could be
cancelled out by Federal Reserve
Board proposed regulations designed
to implement the amendments.
When Congress was debating the
legislation, the IBAA emphasized the
need for controlling conglomerate ex-

29
*

Imperial Fine China by W. M. D alton in the gracefully distinguished W hitney pattern.

T h e p re m iu m o f p re m iu m p ro g ra m s to
in c re as e P assbo o k S a v in g s . . .
Im p e ria l Fin e C h in a by W . M . D a lto n !
A ll that we ask is an
opportunity to talk w ith you.
We deal exclusively w ith banks. Upwards o f 1,000 o f w hich are numbered
among our clients. O ffering com plete services we w o rk w ith you through
o u t the entire prom otion. A ll merchandise is on a guaranteed sale basis,
and guaranteed firs t q u a lity. That's just a small part o f it. We set up every
thing, right down to a simple, proven system fo r yo u r accounting and re
porting. So, if yo u 're interested in new accounts and greatly increased
Passbook Savings, may we talk w ith you?

Im ported French lead crystal, too!
also Stainless Flatware.

U U .m

. D

a l t o n

<8* F=T

N e w to w n In d u s tria l C o m m o n s , N e w to w n , Penna, 1 8 9 4 0 (A re a C o d e 21 5 ) 9 6 8 -5 0 5 1

-*v

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

N o rth w estern B a n k e r , M a y ,

1 97 1

LEFT— J. E. King, pres., Peoples Natl., Albia, la.; Avery Pick, v.p., Marquette Natl., Minneapolis; Michael I. Hoffman, exec, v.p., 1st
State, Munich, N.D.; and Bill Rosacker, corr. bk. off., Marquette Natl. CENTER— Alan M. Meyer, v.p., Central Natl., Chicago, and
Mrs. Meyer; Don Anderson, v.p., Central Natl., Chicago; Mrs. Woods and L. M. Woods, pres., 1st Natl., Antioch, III. RIGHT—
Roger Heironimus, commissioner of banking, State of Wisconsin, Madison; Art Haessig and Don Johnson, v.p.'s, American Natl,
B&T, St. Paul, and Leon Avenson^, pres., Citizens Natl., Park Rapids, Minn.

pansion while preserving the right of
one-bank holding company owner
ship among small banks.
“The IBAA believes that the Fed’s
loosely-worded amendments pose a
serious threat to independent banking
and the public interest,” the IBAA
resolution stated.
Other Resolutions
In other convention resolutions the
IBAA:
—Opposed the present form of the
Gonzales Bill, H.R. 3287, prohibit
ing all insured banks from making any
bank stock loans. The IBAA said such
loans are needed in most cases of
transfer from one independent owner
to another. The resolution recognized
that some abuses have arisen from a
low equity-to-loan ratio, “but we feel
that these abuses can be controlled
without outright prohibition of such
loans.”
—Urged the Secretary of Agricul
ture to support farm prices at the
highest possible level in an effort to

bring farm income up to a parity with
the other segments of the economy.
The IBAA said agriculture and its re
lated industries are a vital part of the
total American economy.
— Pledged to continue its efforts to
combat expansion proposals of the
Farm Credit System. The association
said the FCS is attempting to restruc
ture itself through administrative
changes which permit it to invade the
rural savings field and through pro
posed legislation which will allow it
to expand its lending outside the ag
ricultural credit field. “The combined
effects of these efforts threaten to de
stroy competition and reduce the pool
of loanable funds to farmers and
ranchers in rural areas,” the IBAA
said.
— Supported legislation and other
efforts at the local, state and national
levels to promote the development of
rural America.
—Urged Congress to allow assign
ments of farm program payments to
lenders. The present restrictions on

assignment of government farm pro
gram payments at times prohibits the
farmer from borrowing for operating
purposes, the IBAA said.
—Reaffirmed its belief that expan
sion of multi-office banking— either
through branches or multi-bank hold
ing companies— poses a grave threat
to the “system of independent bank
ing which has served America well.”
— Asked Congress to amend the
Truth-in-Lending Act to exclude agri
cultural loans used in the business of
agriculture from the disclosure re
quirements of the Act.
— Asserted that all financial institu
tions should be required to carry their
full share of the federal income tax
load, and urged that income tax laws
be amended so that commercial banks
are permitted the same reserves as
competing financial institutions.
—Urged the Presidential Commis
sion on Financial Structure and Reg
ulation to resist the pressures of a
minority of large banks to make radical
changes in the banking structure.

LEFT— Harold Gallagher, exec, v.p., Sheffield Sav., Sheffield, la.; Dick Smith, v.p., Central Natl. B&T, Des Moines; Frank Kos,
pres., Washington State Bank, Washington, la., and H. W. Janssen, exec, v.p., Farmers State, Dows, la. CENTER— LeRoy Van
Meeteren, a.v.p., Security State, Sheldon; Eddie Wolf, v.p., Central Natl. B&T, Des Moines, and Mrs. Van Meeteren. RIGHT—
Several guests at Merchants Natl. Bank of Cedar Rapids breakfast were (seated): Frank Kos, pres,, Washington State Bank,
Washington, and Mr. and Mrs. Albert Toms, pres., Mingo T&S, Mingo, la. Three of their hosts were (standing); John Mangold,
v.p., and Mrs. Mangold, and Tom Martin, a.c.
N orthw estern Banker, M a y ,

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

1971

Futures market
hedging is an excellent
way for your clients to
protect themselves against
unfavorable prices at market
time. And the more
your client is protected,
the more you can loan him.
It is acceptable banking practice to
loan more on hedged commodities
than on unhedged.
The Chicago Mercantile Exchange
provides the market for hedging cattle,
hogs, beef, pork bellies, potatoes,

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

eggs, lumber and milo.
We can also provide you
with an excellent booklet on
the relationship of hedging
to banking. It’s called “Price
Protection and Loan
Protection Through Hedging.”
It’s free and you can order as
many as you want by writing
to us at the address below.

CHICAGO M ERCANTILE EXCHANGE
1110 North Franklin Street, Chicago, Illinois 60606

N orthw estern

Banker, M a y ,

1971

LEFT— Michael Whelan, pres., Drovers Natl., Chicago; Mrs. Whelan; Bernard Miller, v.p., Drovers Natl.; Mrs. James W. Thornton,
whose husband is a director of the Buffalo Savings, Buffalo, la.; Dale Kelley, pres., 1st Natl., Burlington, la., and Mrs. Kelley.
RIGHT— Mrs. R. J. Zavoral, cash., St. Clair State, St. Clair, Minn.; Fred Cummings, v.p., Drovers Natl., Chicago; R. J. Zavoral, pres.,
St. Clair State; Mrs. John Spivey, whose husband is pres., Farmers State, Alpha, III., and Mrs. Willard H. Kerr, whose husband is
pres., State Bank of Orion, III.

—Encouraged the establishment of
an independent banking association
in each state.
—Opposed checking account priv
ileges for savings and loan associa
tions and opposed the entry of S&Ls
into the consumer loan field. The res
olution also favored rescinding of the
third party payment privileges recent
ly granted to S&Ls. The IBAA op
posed S&Ls being named depositories
for tax and loan account funds and all
other public funds. The association
also urged that branching privileges
for federally chartered savings and
loans be identical to banks.
—Congratulated the U.S. Treasury
Department on the 30th anniversary
of U.S. Savings Bonds.
— Called on bankers to be ever
alert to ecological factors in the loans
which they make and to take the lead
in preserving the environment of their
communities and the country.
— Asked bankers to make maxi
mum utilization in their communities
of the IBAA’s new Guide to Federal

Programs for ‘Rural Development.
The book describes nearly 500 fed
eral assistance programs available for
rural community development.
— Urged bankers to take advantage
of the new opportunity to sell convential home mortgages to the Federal
National Mortgage Association.
— Supported the efforts of the
IBAA Administrative Committee and
the Bank Study Committee to im
prove independent bank stock mar
ketability and ownership succession.
— Adopted resolutions aimed at
improving bank management, public
responsibility and monetary and fiscal
policies of our government.
— Expressed appreciation to IBAA
President Rod L. Parsch, the conven
tion hosts and the staff.
Bank Failure Causes
Irvine H. Sprague, director of the
Federal Deposit Insurance Corpora
tion, urged early enactment by Con
gress of several sections of the Bank
ing Reform Act of 1971.

Pointing to the recent upsurge of
bank closings, Mr. Sprague analyzed
the 21 most recent cases in detail and
observed that brokered deposits, selfserving loans, or a combination of the
two, were the primary causes in most
instances.
Mr. Sprague suggested that Con
gress act quickly to outlaw the broker
ing practice and to provide the regu
latory agencies with stronger cease
and desist powers to combat self-deal
ing.
He also endorsed legislation to re
duce interlocking directorships and
suggested that Congress examine such
matters as 100 per cent insurance of
public funds, loans on bank stocks
and the prohibition of equity kickers.
Resolutions Committee chairman
for the convention was Foster W.
Daugherty, president, First Commer
cial Savings Bank, Cassopolis, Mich.
Chairman of the nominating com
mittee was B. Meyer Harris, chairman
and president, The Yellowstone
Bank, Laurel, Montana.

LEFT— Pictured at dinner party given by American T&S, Dubuque, are: Bob Scott, sr. v.p., host bank; Mrs. Scott; Christy Arm
strong, exec, v.p., host bank; Mrs. Roy A. Thompson; Mrs. Armstrong; Roy A. Thompson, pres., 1st Natl., Byron, III.; Fred Cum
mings, v.p., Drovers Natl., Chicago, and Leo Kane, sr. v.p., host bank. RIGHT— Seated: Keith Campbell, pres., Citizens State,
Sheldon, la.; Christy Armstrong, exec, v.p., American T&S, Dubuque; Jay Tomson, exec, v.p., Marquette Natl., Minneapolis, and
Bob Dixon, pres., Rolfe State, Rolfe, la. Standing: Larry Makoben, a.v.p., and Don Norris, v.p., both with Drovers Natl., Chicago.
N o rthw estern B anker, M a y ,

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

1 97 1

Case H istory # 4 1 6
*

An actual case history taken from
our correspondent banking files.

Problem :

A northwestern Illinois banker
wasn’t exactjy sure that he had all
the background and resources
necessary to analyze two
manufacturing companies. He
wanted very much to assist one of
his good customers in acquiring new
product lines. What’s more he knew
he would need help in extending his
legal lending limit.

S o lu tio n :

At his invitation, Alan Meyer, one of
our correspondent banking officers,
took a first hand look at the two
manufacturing plants being
considered for purchase. In his
judgement they were a good
investment for our friend’s customer.
So we provided an overline loan for
the local bank.

-y

7>
•f

Now there’s a novelty company in
northwestern Illinois on its way to
becoming a mini-conglomerate, and
a bank with a solid correspondent
relationship.

-)r

*
*>

In more than one way some of our
most interesting customers are other
banks.
For complete details of this case
history write or call Alan Meyer,
Second Vice President,
Correspondent Banking.

(312) 782-2520
t

Central National Bank______________________S3
L aS alle and M on ro e, C h ic a g o (312) 7 82 -2520

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

m em b er

f . d . i .c

N o rthw estern

Banker, M ay,

1 97 1

P ictu res Taken a t In d ep en d en t B ankers C onvention

LEFT— Pictured at National Boulevard Bank of Chicago dinner during the IBAA convention are, left to right, in front: Dan Priske,
v.p., host bank, and Mrs. Priske; Mrs. Lee and Dick Lee, chmn., Capital City State Bank, Des Moines, and Pete DeRosier, a.v.p.,
host bank, and Mrs. DeRosier. In back: L. M. Woods, pres., 1st Natl., Antioch, III., and Mrs. Woods, and Gerald C. Meyers, pres.,
Riverside Natl., Riverside, III. RIGHT— North Dakotans at lunch: Dale C. Streyle, pres., Farmers State, Leeds; L. C. Mensing,
exec, v.p., 1st Natl., Hettinger; E. S. Hagert, pres., Farmers & Merchants, Wimbledon, and Lee M. Stenehjem, pres., 1st Internatl.
Bank, Watford City.

LEFT— The Illinois Bankers Assn, hosted a reception for the new president of the Independent Bankers Assn, of America, Don
Carlson, who is pres, of the Elmhurst Natl, in Elmhurst, III. Pictured at the reception are: Lewis H. Clausen, 1st V.P. of the Illi
nois Bankers Assn., and pres., Champaign Natl.; Mr. and Mrs. Carlson, and Fred Heitmann, Jr., pres, of the Illinois Bankers Assn,
and pres., Northwest Natl., Chicago. RIGHT— Pictured at the South Dakota Bankers Assn, reception are: Leland Steele, pres, of
the SDBA and exec, v.p., Farmers & Merchants, Huron; Neil Milner, exec, secy., SDBA, Huron; Orville Bonacker, 1st v.p. of
SDBA and v.p., 1st Natl., Sioux Falls, and Walter K. Johnson, a past pres, of SDBA and pres., Farmers State, Estelline.

A Look a t P rem iu m s . . .
(Continued from page 25)
ever, that the program generated new deposits and custom
ers for the bank, and we were able to generate these de
posits without increasing previously planned advertising
expenditures. While the program did succeed in attract
ing competitive dollars, we do not feel that these were
“hot-money” accounts or deposits. (Our previous studies
as well as the after-program evaluation supports this
claim.)
And as for the larger bank gaining at the expense of the
smaller bank (because they’re unable to afford costly pro
grams)—we find this is not the case at all. In fact, over the
last four years, our studies have shown that the smaller
banks in our primary markets have been increasing their
share of market at the expense of the larger, more estab
lished banks. They have been attracting these funds pri
marily through servicing pricing (offering free or no-cost
checking accounts). No— on the contrary, we find the
newer and smaller banks (really through more costly
N orthw estern

Banker, M a y ,

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

1971

means) have been able to make strong inroads into this
competitive banking market, and usually at the expense
of the larger banks.
Conclusion
It’s my opinion and based on the results of the A.B.A.
study as well as the results of our own program and those
of others, that customer premiums can be and in fact are
an important and effective bank marketing tool when cor
rectly applied. It’s considered that the premise for elimi
nating bank customer premiums is based on incomplete,
as well as inconclusive facts and evidence. As a result, the
conclusion and the proposed solution (legislation) are
drawn both prematurely and somewhat incorrectly.
Increased legislation, as it relates to customer incentives
or premiums, is not the answer. Perhaps some regulation
may be required, but banking can be and has been both
responsive and responsible in meeting the needs of its cus
tomers and should be given some measure of freedom to
compete for the business.—END

UPTHERE
T h e b ig g e s t a ir lin e s in t h e w o r ld s e r v e b ig c it ie s
a n d n o t-s o -b ig c itie s ,

do w e

OZARK does everything the b ig
g e s t a irlin e s do. R uns its ow n
hostess school. Has a com p u te r
ized re s e rv a tio n s s y s te m . F lie s
m illio n s o f p a s s e n g e rs o v e r
m illions of miles. Jets in and out
o f b ig c it ie s lik e N e w Y o r k ,
C h ic a g o , W a s h in g to n , D .C .,
St. Louis. And also serves cities
that aren’t so big. If you d o n ’t
k n o w a ll th a t a b o u t O za rk . . .
maybe you should take a closer
look. And an Ozark flight.

Call your travel agent
or Ozark Air Lines.

Up there with the

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

N orthw estern

Banker, M a y ,

1971

NEW OFFICE BUILDING of Bank Services, Inc., signifies growth of this public rela
tions service that is im portant to the banking industry.

How Newsletters Help Banks
Attract and Hold Customers
By DEAN WOLF
HEN a company moves into its
Managing Editor
own new office building, it ordi
Bank Services, Inc.
narily doesn’t mean much beyond the
Champaign, Illinois
firm involved. But in the case of Bank
Services, Inc., and Farm Business
Council, Inc., their move last year sig
nifies growth of a service that’s impor serve the needs of business and home
tant to the entire banking industry— a customers of city banks, is outpacing
success story in which hundreds of its older companion newsletter in rate
of growth. “The Picture” publications
bankers have had a direct part.
are
currently sponsored by 598 banks
Indirectly, all banks benefit from the
favorable image of banking presented in 28 states.
The two newsletters are similar only
to the public in the financial newsletter
published by the two firms based at in how they are sold and in their basic
1300 Hagan Street, Champaign, 111. approach to serving the needs of bank
The goodwill impact is more direct and customers and sponsoring banks. A
tangible, however, to banks that spon franchise gives the bank exclusive
sor The Living Picture and The Farm rights to use the newsletters in direct
mail advertising programs in its bank
Picture for their customers.
For a growing number of banks ing territory. Both newsletters convey
across the country, these professionally the financial picture to bank customers
edited financial newsletters are the cor in a friendly, informative way— from
nerstones of public relations programs a banker’s point of view. Both offer a
that build loyalty among customers sponsoring bank the option of using
and win new friends for the bank. Pub
lished monthly, these financial news
letters keep a bank’s services directly
in front of its customers on a regular
and dependable schedule.
Evidence of the trend is in the
growth of “The Picture” publications.
From a single edition mailed to a few
hundred farm customers of a handful
of banks in 1958, The Warm Picture
now has four editions tailored to the
regional and type-of-farming interests FOUNDER and president of Bank Serv
of agricultural banking. The Living ices, Inc., Earl Crouse, concentrates on
Picture, introduced late in 1967 to sales. He is chief executive officer.

N o rth w e s tern Banker, M a y ,

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

1971

all or part of one page each month for
its own localized message.
Bankvertising (T.M.) is the coined
word used to describe what the news
letters do for banks. Earl Crouse, Bank
Services’ president, explains, “Bank
vertising (T.M .) distinguishes the dif
ference between what our newsletters
do and what ordinary advertising
does.”
“The Picture” publications give
readers an overview of where the econ
omy is headed and of changes in busi
ness conditions. Then they follow
through with articles relating to finan
cial services available at the local bank.
Bank customers value the information
and help they get from the newsletters
in managing business and home finan
cial affairs. This shows up in test area
mailings and preference rating surveys
made by sponsoring banks.
“The clincher for banks,” says Mr.
Crouse, “is that readers not only ap
preciate this help but they remember
where it comes from when in the mar
ket for additional banking services.
That’s how Bankvertising (T.M.) de
velops more full-service banking cus
tomers.”
Editorially, the two newsletters are
completely different— each sharply fo
cused on the interests of its readers and
tuned to the services offered by spon
soring banks.
The Living Picture is edited primar
ily for businessmen, professional peo
ple, employees and consumers. Spon
soring banks are located in cities rang
ing in size from rural Gibson City, 111.;
Holly, Colo., and Rio Grande City,
Tex., to metropolitan Omaha, Nebr.,
and Madison, Wis.
The front page digests and inter
prets trends in the nation’s economy,
government policy and business condi
tions in clear meaningful language that
goes straight to the point. Before we
publish an article it must answer the
question, “so what, why does it mat
ter”— to bank customers who own and
operate businesses or work for wages
and salaries, and to housewives who
manage family budgets.
Inside, The Living Picture deals
with the individual’s needs in manag
ing business and personal financial af
fairs. Selection of stories is based in
part on services available at banks.
Topics include: consumer income and
expenses, taxes, the banking system,
wills and executors, estate planning,
NEWSLETTERS . . .
(Turn to page 88, please)

*
*

This advertisement is neither an offer to sell nor a solicitation of offers to buy any of these securities.
The offering is made only by the Prospectus.

NEW ISSUE

April 21, 1971

$30,000,000

N orthw est Bancorporation
6 %% Notes Due 1978

Price 99.50%
plus accrued interest, if any, from April 15, 1971

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified
to act as dealers in securities and in which the Prospectus may legally be distributed.

The First Boston Corporation

duPont Glore Forgan Staats

Goldman, Sachs & Co.

Hornblower

Weeks-Hemphill, Noyes

In c o rp o ra te d

Kidder, Peabody & Co.

Merrill Lynch, Pierce, Fenner & Smith

In c o rp o ra te d

Blyth & Co., Inc.

Salomon Brothers

Paine,Webber, Jackson & Curtis

In c o rp o ra te d

Smith, Barney & Co.
In c o rp o ra te d

In c o rp o ra te d

White,Weld & Co.

Dean Witter & Co.
In c o rp o ra te d

Bache & Co.

Dain, Kalman & Quail

Piper, Jaffray & Hopwood

In c o rp o ra te d

N o rth w estern B a n k e r , M a y ,

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

1971

R e ta ilin g a n d B an kin g . . .
(Continued from page 26)
9 Young people will be less patient in regard to ad
vancement. More interested in innovations and in
having a voice in decision making.
10 There will be less loyalty toward the employer and
his goals, more toward personal and professional
goals that involve creativity. By now, of course, you
are aware of how directly the competitive struggle
relates to people.
With all of these things to contemplate, we must remem
ber that in the conduct of a successful retail business, it is
important that the buying habits of the customer coincide
with management’s judgment of fashion, styling and other
factors so that we are not left with too large a part of the
inventory which is subject, as all retailers know, to mark
downs. Incidentally, most retailers have also learned that
sheer weight of inventory does not produce additional
business. As a matter of fact, it often works in reverse. As
inventories build up, sales decline. Competition has forced
the retailer to keep fresh new merchandise flowing into the
store every day. Cut off the merchandise flow and business
comes to a halt.
Nation of Bargain Hunters
For better or for worse, retailers have created a nation
of bargain hunters. Today’s consumer has developed a
great sense of price-awareness and tends to demand value
received. I suspect the same attitude prevails when he
shops for money. In buying merchandise the successful re
tailer has to be careful, up-to-date and, in some cases, con
servative almost to the point of timidity because he knows
he must get back what he paid for the merchandise.
Some retailers, like some bankers, are more successful
than others because they had in mind making a profit when
they bought the goods rather than relying on making a
profit after they were paid for. At least we think that every
purchase is going to be profitable. There is an old saying
that goods well bought are half sold. Of course, we must
also achieve the usual mark up. The old standard was 42

To H ea d 9th
F ed era l D istrict

per cent. Now it is 47 per cent or 50 per cent because of
the higher cost of doing business. We have to rely upon
our knowledge of these factors when we go to you, the
bankers, to get loans to finance our customers and also our
peak inventories. Whether or not a retailer succeeds in
having something left out of his gross profit depends on
management and the finances at the disposal of manage
ment.
When comparing competition in retailing with competi
tion in banking there is really not any difference. In the
case of a bank which is competing for loans and deposits,
the people who execute the policy have to be alert, knowl
edgeable and experienced. The same would apply in the
retail business.
Two Key Parts— Buying and Selling
There are really only two parts to the retail business—
buying and selling. Everything else supports those two
functions. Of course, it is in selling that competition comes
in and there is not really too much new about competition.
It’s basically the same in every business.
In conclusion, I want to stress that in our business we
strive to maximize profits. We make every effort to avoid
sending an unfavorable report to our stockholders. A
friend recently recited a case about a stockholders’ report
which contained most unfavorable information about the
annual financial results of the company, concluding with
the statement that notwithstanding all this unfavorable in
formation, management was looking forward to the future
with confidence and optimism. My friend said that report
was a “mirage” and when I asked what he meant, he said,
“Look it up in Webster’s dictionary,” and this is what Mr.
Webster says:
“A mirage is an optical phenomenon produced by a
stratum of hot air of varying density . . . across which the
observer sees reflections, usually inverted, of some distant
objects or objects.”
It is my fervent hope that, as we consider our competi
tive position of the future, we can manage our business in
such a way that our stockholders will always realize a prof
it and will never have to settle for a mirage.— END

from Princeton University in 1953.
After serving as a Lieutenant of Ar
tillery in the U. S. Army from 1954ruce K. MacLaury will be the new 1956, he received his Master of Arts
president of the Federal Reserve and Ph.D. degrees in economics from
Harvard University in 1958 and 1961,
Bank of Minneapolis, it was announced
by David M. Lilly, chairman of the respectively. He joined the staff of the
bank’s board. Mr. MacLaury currently Federal Reserve Bank of New York
serves as Deputy Under Secretary of in 1958 while pursuing his studies. In
the Treasury for Monetary Affairs and 1962-63 he served as a consultant
was formerly vice president of the For in international finance to the Organi
eign Department at the Federal Re zation for Economic Cooperation and
Development in Paris. He returned to
serve Bank of New York.
Thirty-nine year old MacLaury be the New York bank in 1963, serving
comes the youngest of the Federal Re in the Foreign Department until he be
serve Bank presidents, and the young came Deputy Under Secretary of the
est to hold the post at the Minneapolis Treasury in April of 1969.
Mr. MacLaury, his wife and two
Bank.
sons,
ages seven and five, will arrive in
A native of Chappaqua, New York,
Minneapolis
in June.
MacLaury received his A.B. degree

Northw estern

Banker, M a y,

1971

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

The president of each of the twelve
Federal Reserve Banks is appointed by
the board of directors of the respective
bank and must also be approved by
the Board of Governors of the Federal
Reserve System.

Flan W est C oast M erger
Wells Fargo Bank and World Air
ways has announced agreement in
principal for Wells Fargo Bank to ac
quire First Western Bank & Trust Co.
to strengthen Wells Fargo Bank in
Southern California.
The agreement calls for Wells Fargo
Bank to pay $95 million for First
Western, a subsidiary of World Air
ways.

Market Research...

D ELU XE

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P R IN T E R S , IN C .
SALES HDQTRS. • 3440 N. KEDZIE, CHICAGO, ILL. 60618
STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST

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

The DeLuxe marketing group, while being primarily
concerned with the sale of our products, is also
engaged in many other activities. One such impor
tant activity is Market Research. For example, our
“ Distinctive” check line, our current cover selec
tion, our catalogs and our sales aids received
extensive research in the marketplace prior to their
release in market test areas. Post purchase atti
tudes were measured in subsequent surveys to
determine customer acceptance and reorder inten
tions. These research and development efforts have
enabled us to develop products and sales aids that
effectively help banks in meeting the needs and
desires of their accounts, as well as assuring the
greatest degree of success in check merchandising
programs.
We believe that only by utilizing these modern
research methods can we assure ourselves that
current market needs are being met. They are only
one aspect of our attempt to provide a complete
service to our bank customers. There is a difference
in DeLuxe service— let us prove it to you.
N orthw estern Banker, M a y ,

1971

You can learn a lot from
books.
But there’s a different
wisdom that comes only with
experience. It’s the kind of
wisdom that lets a man know
when it’s possible to do the
impossible. That tells him when
it’s time to expect something
unexpected.
In life, and in business,
that kind of wisdom often
makes all the difference.
That’s why at the Idea
Bank we believe it’s essential
that our men acquire an under
standing of their work not just
by the book, but through first
hand experience as well.
That’s especially true of our
Correspondent men. To make
sure they understand and know

how to use all the resources of
our bank, we select men for our
Correspondent Division who
have experience in many areas
of banking, such as commercial
loans, asset management,
operations, and international
banking.
In addition, we encourage
our men to spend some time
with their correspondent
customers when there’s no
particular problem to pre
occupy them. They have time to
talk with bank personnel and
get some first-hand insight into
the problems and opportunities
of banking in a small town,
or a small city.
As a result, our Corre
spondent men have a unique
practical understanding of the

problems they’re asked to solve.
And of the tools they have to
use to solve them. And that
means they’re able to offer faster
and more effective service than
anyone else we know of.
The next time you’ve got a
difficult correspondent problem
you need solved quickly and
creatively, consider calling our
man Bill Aldrich at
(312) 661-5050.

If he isn’t available, one of
our other men will help you.
No matter who it is, you’ll
be speaking with a very learned
man indeed.

Am erican National
The Idea Bank

American National Bank and Trust Company o f Chicago* LaSalle at Washington 60690* Phone(312) 661-5000 Member FDIC
N orthw estern

Banker, M a y ,

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

1971

Chicago Hosts Illinois
Convention June 2-4
"t

F. W. HEITMANN, JR.

9:30
varied array of speakers— including NASA physicist
Wernher von Braun, CBS newsman Mike Wallace,
„ Congressman Wright Patman, and Economist Walter
Heller— will enliven the program of the 80th annual convention of the Illinois Bankers Association at the Palmer
House in Chicago, June 2-4.
The meetings will be presided over by the president of
the Illinois Bankers Association, Fred W. Heitmann, presi
dent of the Northwest National Bank of Chicago.
Nominated for officers of the IBA for 1971-72
are: president, Lewis H. Clausen, president. Champaign
National Bank, Champaign; vice president, John F. McKnight, president, Oak Park National Bank, Oak Park;
second vice president, James P. Ghiglieri, president, Citizens National Bank of Toluca; treasurer, Paul Jones,
chairman, Glenview State Bank, Glenview.
Robert C. Schrimple of Chicago is the executive vice
president of the IBA.
The convention program follows:
Wednesday, June 2
Noon
12:00 Registration Desk Opens — Upper Exhibition Hall
— 4th Floor Open from 12 Noon until 6 P.M.
P.M.
3:00 Meetings — members of Council of Administra
tion — PDR 14 — Club Floor; members of Illinois Bankers Foundation — PDR 7 — 3rd
Noon
Floor.
12:00
6:00 Past Presidents and Past Treasurers Dinner —
Luau Room — Trader Vic’s.
12:00
6:00 Dinner for Wives of Past Presidents and Past
Treasurers — Crystal Room — 3rd Floor.
Thursday, .Tune 3
12:00
A.M.
8:00 Breakfast — Illinois Club, Graduate School of
Banking, Madison, Wisconsin — Crystal Room
Address — the Honorable Alan J. Dixon,
Treasurer of Illinois.
8:30 - 6:00 Registration
A.M.
8:30 — Exhibits Open
8:30

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■■■

First General Session — Grand Ballroom — 4th
Floor
Presiding — Fred W. Heitmann, Jr., president,
Illinois Bankers Association, and president,
Northwest National Bank of Chicago.
Presentation of Colors — The First National
Bank of Chicago Color Guard.
Welcome — Thomas F. Meagher, president,
Chicago Convention and Tourism Bureau.
“The American Space Program In The Decade
Of The Seventies” — Dr. Wernher von Braun,
deputy associate administrator, National Aero
nautics and Space Administration.
Address — Mike Wallace, CBS News corre
spondent.
Report of IBA Committee on Nominations —
chairman, Earle O. Corley, Union National
Bank, Marseilles.
ABA Annual Meeting & Elections — Lynn H.
Miller, ABA State vice president for Illinois and
senior vice president, The Northern Trust Com
pany, Chicago.
Foundation for Full Service Banks — William
O. Kurtz, Illinois chairman, and senior vice
president, American National Bank & Trust
Company, Chicago.
Door Prize Drawing
50 Year Club Luncheon — Crystal Room — 3rd
Floor.
Luncheon and Annual Meeting — IBA Insurance
and Pension Program Participants — PDB 14
— Club Floor.
Ladies’ Luncheon — Red Lacquer Room — 4th
Floor.
“You CAN Bank on ESP”
Irene Hughes, Psychic-Mystic
Friday June 4
Registration

-i

R. C. SCHRIMPLE

L. H. CLAUSEN

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

L. H. MILLER

W. PATMAN

W. W. HELLER

W. W. ALEXANDER

N orthw estern B anker, M a y ,

1971

Illinois News

8:30 Exhibits Open
9:30 Second General Session — Red Lacquer Room —
Presiding — Fred W. Heitmann, Jr.
Address — Willis W. Alexander, executive vice
president, The American Bankers Association.
Address — Walter W. Heller, regents’ profes
sor of economics, University of Minnesota.
Address — William Hummer, Wayne Hummer
and Company, Chicago.
Noon
12:00 Luncheon — Grand Ballroom — 4th Floor —
presiding — Fred W. Heitmann, Jr.
Invocation
Address — the Honorable Wright Patman,

chairman, House of Representatives Committee
on Banking and Currency.
P.M.
2:00 Third General Session — Red Lacquer Room —
4th Floor.
IBA Annual Meeting and Business Session
Annual Reports — president, Fred W. Heit
mann, Jr.; executive vice president, Robert C.
Schrimple.
Election of IBA Officers for Year 1971-1972
Declaration of Policy
7:00 Banquet — Grand Ballroom — 4th Floor — Pre
siding — Fred W. Heitmann Jr.
Entertainment: Bob Crosby and his Orchestra

You W ill See Them a t the
Illin ois Hankers C onvention
he following metropolitan bankers presidents, and John J. Crotty, Jr., and
and service and equipment dealers John E. MacArthur, assistant vice
have indicated that they will be attendpresidents.
National Boulevard Bank: Irving
ing the Illinois Bankers Association’s
80th annual convention in Chicago, Seaman, Jr., chief executive officer;
Henry K. Gardner, president; Daniel
May 12-14.
G. Priske, vice president; H. Peter DeChicago
American National Bank & Trust Rosier and Glen E. Smith, assistant
Company: Allen P. Stults, chairman; vice president, and Fred G. Eitel and
William G. Ericsson, president; Stefan Mayo C. Walcott, assistant cashiers.
Northern Trust Company: Robert
S. Anderson, executive vice president;
William O. Kurtz, senior vice presi Hunt, executive vice president; Charles
dent; William J. Davis and Gerald G. H. Barrow, senior vice president;
Morse, second vice presidents, and Clyde W. Reighard and Henry A.
Heinsen, vice presidents; Lyle P.
Martin J. Noll, loan officer.
Central National Bank: F. E. Bau- Campbell and Nolan L. North, second
der, chairman; R. E. Hamilton, vice vice presidents, and Marvin D. Swan
chairman; H. H. Beermann, T. P. son and Donald S. Wilson, assistant
Hickey, and A. B. Peterson, vice presi cashiers.
Los Angeles
dents; A. M. Meyer, W. H. Obrecht,
Security Pacific Bank: John J. Stine,
N. .T. Kash, and Miss Marion Bocach,
vice president, and James M. Brown,
second vice presidents.
Drovers National Bank: Robert assistant vice presidents.
New York
Lough, chairman; M. J. Whelan, presi
Chase Manhattan Bank: K. F. Lowe
dent; S. O. Brattleaf, executive vice
president; F. D. Cummings, senior vice and A. K. Small, vice presidents; J. P.
president; B. D. Miller, vice president, Lees and I. McDonald, second vice
and L. E. Makoben and E. L. Rietz, presidents, and G. A. Dale, representa
tive.
assistant vice presidents.
Chemical Bank: John A. Farns
First National Bank: Leslie V.
Bjork and Thomas L. King, vice presi worth, assistant vice president, and
dents; C. Hugh Albers and K. D. St. Thomas J. Pyles, assistant secretary.
First National City Bank: John J.
Pierre, assistant vice presidents, and
O’Connor, vice president; Joseph C.
Thomas F. Harmon.
Harris Trust and Savings Bank: Thomassen, assistant vice president,
William F. Murray, chairman and and J. H Sanford, assistant cashier.
Irving Trust Company: James R.
chief executive officer; T. H. Roberts
and Charles M. Bliss, senior vice pres Waldron, assistant vice president, and
idents; D. L. Webber and J. C. Mauld- Thruston W. Pettus, assistant secre
ing, vice presidents; A. J. Gneuhs, K. tary.
Manufacturers Hanover Trust Com
R. Kann, and G. J. McEwen, assistant
vice presidents; and W. J. Potterton pany: John F. King, vice president,
and R. W. Holdych, correspondent and George R. Bennett, assistant vice
president.
banking officers.
St. Louis
LaSalle National Bank: Cyrus D.
First National Bank: Clarence C.
Kirk and Robert B. Hillebrand, vice

N o r t h w e s t e r n B a n k e r, M a y ,

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Federal Reserve Bank of St. Louis

1971

Barksdale, president; Jefferson L. Mil
ler, senior vice president; Harry L.
Smith, Paul M. Ross, and Joseph Or
lando, vice presidents; Roger L.
Huber, commercial banking officer,
and Michael D. Fleir, representative.
Mercantile Trust Company: Donald
E. Lasater, chairman; James E.
Brown, senior vice president; James A.
Smith and James J. Reedy, vice presi
dents; Peter Palumbo, Jr., assistant
cashier, and Jerald L. Fleschner and
Lawrence F. Gallo, representatives.
Bank Equipment and Other Firms
Bank Building Corporation: Arne
Bronton, manager of sales, and S. L.
Fisher, market area manager.
Dempesy & Fredericks, Inc.: George
H. Dempesy, executive vice president.
Diebold, Inc.: Bob Schutt, division
manager; Don Barnard, regional man
ager; Bob Rosenthal, Bob Wroble, and
Tom Hoover, sales representatives,
and Clarence Erickson.
Foundation for Full Service Banks:
O. C. Daggert, senior vice president.
Lawrence Warehouse Company: A.
T. Bear, C. W. Rose, and Roger P.
Carqueville.
Life Investors of America: Max
Benson, regional manager, credit in
surance.
NYTCO Services, Inc.: Jim Mowdy, Wally Coutts, and Ferd Pourbaix,
vice presidents.
Protective Group: C. D. Norris, vice
president, and Bill McMullen and Cal
Opsahl.
Scarborough & Company: Richard
C. Ross, president; Norman Clark,
executive vice president; J. Richard
Morran and Ray L. Eilert, vice presi
dents; Fred S. Andrews, assistant vice
president; R. H. Benjamin, C. F. Moi
ling, Ronald R. Fredriksen, and Den
nis M. Calvert, sales representatives;
YOU WILL SEE THEM . . .
(Turn to page 46, please)

Some o f the Continental
men serving the Midwest:
Larry Frowick

People keep sa yin g that
the only effective m easure
o f ban k perform ance is the
bottom line o f your
R & L . statem ent.

Gerry Gale

And who wants to argue against profits?
But let’s make clear whether we’re talking about long-term or
short-term profits.
These days, many of our correspondents are proving that it’s
possible to increase profit potential over the long run by assuming
the costs of a program that can attract and hold good,
productive employees.
As one banker put it: “ I never thought we could afford to put
money into benefits, but now I’m losing good people, and
that’s something I know I can’t afford.”
In his case, we were able to call on a whole staff of
Continental specialists. We recommended insurance plans, helped
him set up a pension and profit-sharing trust, and worked out
an employee communications plan.
The point is: a bank’s profit potential depends on more than
short-term considerations. And one of the ways we live up to our
potential is helping you through the difficult process of balancing
the one against the other.

S g CO NTIN EN TAL BAN K

&&&
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Syl Franklin

LifSi!
T-y;
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* ** «

Continental Illinois National Bank and Trust Company o f Chicago, 231 South LaSalle Street, Chicago, Illinois 60690. Member F.D.I.C.

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

Northw estern

Banker, M a y ,

1971

Illinois News

Urbana Bank Sold

G ran d O pen in g a t E l P aso

WOODFORD COUNTY BANK, El Paso, recently held an open house to display its new
building, the climax of a 10-month building program.

More than 2,000 persons visited the
Woodford County Bank, El Paso, dur
ing its grand opening recently. Visitors
were registered from 60 Central Illi
nois communities as well as some from
Indiana and one visitor whose home
was in Nicosia, Cyprus.
The two-day open house was the cli
max of a 10-month building program
that more than doubled the area avail
able for customer use. It also brought
drive-in banking to El Paso, and ample
space is available to expand the num
ber of drive-in lanes as is needed.
A portable TV set as well as 10
other prizes were given at the conclu
sion of the open house.

ships will be made on September 22,
1971 at a banquet of the IBA’s Agri
cultural Credit Conference, to be held
on the Champaign-Urbana campus of
the University of Illinois.

Beverly Promotions
The board of directors of Beverly
Bancorporation, Inc., Chicago an
nounced recent promotions within its
official staff: William D. O'Hearn, for
mer marketing operations officer, was
named assistant vice president, and
William A. Pecora, former market re-

Announce Staff Changes
C. S. Gaskill, president of the Olym
pia State Bank, Chicago Heights, re
cently announced these staff changes
within the bank: Sy Cole, Charles S.
Gaskill, and Louis J. Marchigiani as
director; George Arquilla, Sr., honor
ary director; Charles S. Gaskill, presi
dent; Scott Hunter, cashier, operations
officer and security officer; Martha L.
Henkel, assistant cashier and lending
officer; Ruby L. Lorenzen, assistant
cashier, customer service officer; Ei
leen Edgreen, assistant customer serv
ice officer; Vivian Myers, assistant op
erations officer, and Donald MacNeil,
assistant corporate secretary.

Ag Scholarship Winners
The Illinois Bankers Association an
nounced the winners of two recently
established agricultural scholarships of
$1,000 each.
Recipients of the 1971-72 scholar
ships are Paul E. Adami, a student at
the University of Illinois, Urbana, and
Thomas W. Cross, a student at Illinois
State University, Normal.
Formal presentation of the scholar
N orthw estern

Banker, M a y ,

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

1971

W. D. O’ HEARN

W. A. PECORA

search analyst has been named market
research officer. The announcement
was made by Thomas V. Markle, pres
ident of Beverly Bancorporation.
In his new capacity, Mr. O'Hearn
will have the responsibility of liaison
and marketing services to the Bancorporation’s clients.
Mr. Pecora joined the Bancorpora
tion as market research analyst in Au
gust, 1970. He had previously worked
for an advertising agency as research
analyst for a large food franchise ac
count.

Tortorici Promoted
Anthony J. Tortorici, vice president
and cashier, has been named corporate
secretary of the County Bank and
Trust Company, Blue Island.

Douglas Mills and Howard McKee
have purchased controlling interest in
the Busey First National Bank, Urbana,
from Mr. and Mrs. J. R. Klassen.
Mr. Mills, who
has been second
vice president of
the American Na
tional Bank and
Trust Company,
Chicago, will be
active at Urbana
as chairman of
the $35 million
bank. Mr. Mc
Kee, a Chicago
attorney with sub
stantial banking interests, will be chair
man of the executive committee. Both
men will serve on the bank’s board. All
other officers will remain the same.
Mr. McKee serves as chairman of
the Citizens National Bank of Downers
Grove, and as chairman of the execu
tive committee of the Wheeling Trust
and Savings Bank. He is a native of
Earlham, Iowa.

Oak Park Promotions
Robert D. Casey
has been named
executive
vice
president of Oak
Park N a t i o n a l
Bank, Oak Park,
according to a rec e n t announce
ment made by
J o h n F. McKnight, president
and chief execuR. D. CASEY
tive officer of the
bank.
Mr. Casey, former vice president
and controller of Michigan Avenue Na
tional Bank of Chicago, is a graduate
of St. Mary’s College, Winona, Minne
sota, and served in the Army during the
Korean War.

Wheaton Changes Made
Francis E. Weimer, board chairman,
Wheaton National Bank, Wheaton, has
assumed the additional post of presi
dent of the $32 million west suburban
bank.
A veteran banker, Mr. Weimer be
gan his career in 1922 with the First
National Bank of West Chicago. He
joined Wheaton National in 1947 as
cashier, became a director in 1952,
and was named vice president and
cashier in 1955. He served as president

Question:
Who treats your customer
referral as a stepping stone back
to complete bank financing?

Because Heller cooperates with banks.
That’s why we “ succeed” when we lose some
of our best clients to our bank friends. And they
gain better and larger customers.
Banks refer situations to us when there’s a
need for more funds than the bank is able to lend,
or there’s a portfolio item that is causing concern.
(Or, when a bank is simply unable to
accommodate a prospect, but still wants to help—
and keep a depository relationship).
At Heller, if we see a potential, we can usually
provide the necessary financing; with our funds
alone, or through a participation, if the bank wants
to maintain a position in the situation.
The lending arrangement normally continues
until complete bank financing seems indicated;

then, we’ll arrange the transition. That’s our
policy, and it helps keep bank referrals coming
in...and helps replace the good clients we “ lose.”
Write for our brochure, “ Heller and Banks,” or
phone the Heller office near you for information.

W alter E. Heller & Company
105 West Adams Street, Chicago, Illinois 60690
New Y ork • B o ston • P h ila d e lp h ia • A tla n ta • M iam i • New O rleans *
D a lla s • Los A n g e le s • San Francisco • P o rtlan d • S a nturce, P. R.

Brussels • London • Paris • Mainz, West Germany •
Utrecht, Holland • Milan • Barcelona • Johannesburg • Sydney
• Manila • Copenhagen • Bergen, Norway • Stockholm * Mexico City
Buenos Aires • Kingston, Jamaica.
Heller services also available in Canada.
•

Northw estern

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

Banker, M a y,

1 97 1

Illinois News
and the National Commercial Lending
School.
Mr. Kowalski joined the Bank of
Westmont in 1969 as cashier, a post
he will continue to hold.

3 B anks N a m e A g en cy

F. E. WEIMER

R. W, 5CHNACK

of the prominent financial institution
from 1960 through 1968, advancing
to board chairman in 1969.
Robert W. Schnack has been ap
pointed executive vice president of the
bank. He began his banking career
with the Bank of Silvis in 1964, Silvis,
Illinois, a Quad-City area financial in
stitution. He was named cashier of the
Silvis bank in 1968, the post he held
for two years until joining the Wheaton
National as vice president and cashier
in 1970.
Rita M. Ellis,
has b e e n ap
pointed cashier of
the Wheaton Na
tional. Mrs. Ellis
began her bank
ing career in 1962
with an Indiana
bank. She joined
Wheaton National
in 1965, and in
R. M. ELLIS
1969 she was
n a m e d auditor,
the post she held until this recent ad
vancement.

W estm o n t P r o m o tio n s
Richard M. Lang was elected vice
president and Ronald A. Kowalski was
elected assistant vice president at the
Bank of Westmont in Westmont, ac
cording to an announcement by Presi
dent Marcel L. Levesque.
Mr. Lang joined the Bank of West
mont in 1968 as assistant cashier, and
was named assistant vice president in
1970. He is a graduate of North Cen
tral College in Naperville; and of the
board of governors Examiner School,

R. M. LANG
Northw estern

R. A. KOWALSKI

Banker, M a y ,

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

1971

Dempesy & Fredericks, Inc., Chi
cago, a full-service marketing agency
specializing in financial institutions, re
cently added three Chicago-area banks
to its client roster, it was announced
by agency president, C. Thomas
Fredericks.
Naming the agency were: Bank of
Bellwood, Bellwood; Bank of Com
merce, Berkeley, and the Wheaton Na
tional Bank, Wheaton.
Combined billing of the three ac
counts, including fees, will total ap
proximately $70,000.

W eir S erves on P a n el
G a v i n Weir,
p r e s i d e n t and
c h i e f executive
officer of Chi
cago City Bank
and Trust Com
pany,
recently
was a member of
a panel of four
company p r e s idents appearing at
G. WEIR
the University of
Illinois, C i r c l e
Campus. The occasion was a special
discussion presented for students of the
University Business School.
Mr. Weir represented the banking
industry on the panel. There was an
excellent exchange of questions and
answers with the students, regarding
both the business and social aspects of
corporations.

T w o A re P r o m o ted
It was recently announced that
Richard S. Marsho has been appointed
manager of loan operations at Central
National Bank, Chicago. The an
nouncement was made by Frank E.
Bauder, chairman.
Mr. Marsho joined Central National
as a staff analyst in 1969. He was pre
viously associated with IBM, in the
data processing division. He attended
the University of Illinois, receiving his
B.S. in General Engineering in 1963
and his M.B.A. in 1967.
Carol J. Richter has been appointed
assistant cashier in the real estate
banking department. Mrs. Richter
joined Central National in 1967 and

R. S. MARSHO

C. J. RICHTER

was appointed mortgage administrative
assistant in 1968.

L o ck p o rt A d v a n cem en t
The Bank of
Lockport has an
nounced the appointment of John
J. Soviak as vice
p r e s i d e n t and
cashier. The new
bank is under
construction and
Mr. Soviak will
be its chief opJ. L. SOVIAK
erating officer.
He joins the
Bank of Lockport from a position of
assistant cashier and assistant trust of
ficer of the Marquette National Bank
in Chicago, where he has served for
the last 10 years.

t
1
,
*
f
*

T w o N ew B oard M em bers
Two new members were elected to
the board of directors of Sears Bank
and Trust Company, Chicago, at the
bank’s annual meeting, it was an
nounced by board chairman, James E.
Thompson.
Added to the board were David V.
Dootson, executive director of investments for the savings and profit shar
ing pension fund of Sears, Roebuck
and Company employees, and Charles
E. Dykes, vice president-finance,
United States Gypsum Company.
George E. Simpson, Jr., has been
appointed assistant trust officer of the
Sears Bank and Trust Company.
YOU WILL SEE THEM . . .
(Continued from page 42)
James P. Jensen, Richard A. Gillette,
John P. Heupel, Edward D. Norris,
John R. Willis, and Jay A. Riemersma,
account executives.
Farm Business Council: Earl F.
Crouse, president.
Financial Insurance Service, Inc.:
Richard T. Hepworth, president; Wm.
Chris Eickhof, Jr., executive vice president; Peter L. Engstrom, Jack W.
Impey, George F. Lang and L. Bloom,
vice presidents.

Brain-sharing:
to give you
international
banking
capabilities.
No matter where you are, or what
size you are, Harris can become
the international extension of your
bank. We can help you or your
customers set up inter
national loans. Or ex
port-im port financ
ing. We can secure
foreign economic
and credit infor
mation. And of
course, we can
handle the de
tails that
accom pany
e v e n

th e

simplest in
te rn a tio n a l
transactions.
Whether you're a
larger bank that
doesn't want the
bother of a perma
nent international set
up, or a smaller bank with
urgent need for a foreign bank
ing connection, the Harris—and
all its foreign operations and con
tacts—is at your service.
As a first step, we offer you our
International Trade Guide, a com
prehensive catalog of the services
we can perform internationally on
your behalf. It could be just what
you need to hold on to a customer
who fancies he's outgrowing you.
For fu rth e r in fo rm atio n, call
David L. Webber at 312/461-2813.
Sa v in gs

111 West Monroe Street, Chicago, Illinois 60690.
Organized as N. W. Harris & Co. 1882. Incorporated
1907. Member F.D.I.C.... Federal Reserve System.
N orthw estern B anker, M a y ,

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

1971

Buildinga
bond
portfolio
isnota
do-it-yourselr
project

Successfully structuring a bond portfolio
is a demanding and complex process. A really profitable portfolio requires con
stant analysis, imaginative blending of diverse opportunities and old-fashioned
hard work.
Now for the good news. The Bond Department at First Minneapolis makes
available all the expertise you need. You have instant access to a professional
bond counselor. He, in turn, is supported by a staff of over 30 full-time special
ists and a computer.
You receive informed advice and assistance. We can even shoulder the
recordkeeping burden. And you stay in the driver’s seat. To begin a profitable
discussion of your portfolio, call the Bond Department at the Bankers’ Bank of
Mid-America ... 612/370-4141.

First
M inneapolis
Has an Idea for You
Bond Department
N orthw estern

Banker, M a y ,

1971

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

First National Bank of Minneapolis, 120 So. 6th Street • Member FDIC

49
A

University of Chicago. He has com
pleted many American Institute of
Banking courses and is currently chair
man of the Rock-Pipestone Counties
group.

M in n e s o ta

N EW S
M. R. CAMPBELL
T. L. JEFFERS

President
Exec. V. P.

A u th o rize Increase

Crookston
Minneapolis

G ran d O pen in g a t T h ief R iv e r F alls

Grand opening activities for the
Northern State Bank of Thief River
Falls, Minnesota, were held recently.
The festivities included prizes, souve
nirs and refreshments, it was an
nounced by G. A. Beito, president.
The bank has been completely re
furbished, both exterior and interior,
and has been expanded to include an
adjacent building. Covered auto bank
ing facilities, with two drive-up teller
stations having a pneumatic visual au
tomatic teller system by Diebold, have
been added. Parking is provided for
20 cars with a rear banking entrance
from the parking lot. The vault facili
ties have been expanded and addition
al safe deposit boxes have been in
cluded.
Planned by Dykins-Handford, Inc.,
Minneapolis architects of financial
buildings, the bank has a white sculp
tured facade and new windows of
bronze tint glass on both the first and
second floors. Night lighting will be
used to point up the white exterior
which has Colorado white quartz frag
ments set in epoxy, contrasting with
the dark polished granite base.
A unique two-story mirror glass en
trance, with large moulded chandelier
of bronze, provides access to the south
main floor banking room and to the
second floor rental offices. An after

hour depository is located in this en
trance vestibule. An enclosed walk-up
window for after-hour banking is in
the side corner entrance.
The Northern State bank was or
ganized in 1935, by the late George
A. Beito Sr., father of the current
president.

S tock to $ 1 0 0 , 0 0 0
The State Bank of Danube recent
ly received authorization from the De
partment of Commerce, banking divi
sion, to increase the amount of capi
tal stock from $50,000 to $100,000
by stock dividend.

E ik m e ie r N a m ed D irecto r
Dale E. Eik
meier of Pipe
stone was elected
executive v i c e
president and di
re c t o r of the
Town & Country
State Bank of
W i n o n a at a
meeting of the
board of directors
D. E. EIKMEIER
held recently. He
was f o r m e r l y
cashier of the First National Bank in
Pipestone where he served since
graduating from South Dakota State
University at Brookings, with a B.S.
degree. His banking service was inter
rupted from 1955 to 1957 with a tour
of duty in the U.S. Army.
Mr. Eikmeier is a graduate of the
Graduate School of Banking at the
University of Wisconsin and of the Na
tional Installment Credit School at the

H eilm a n J o in s B ank
Richard P. Pike, president of the
Northwestern National Bank of
Hastings, has announced the appoint
ment of Lanny Heilman to the staff.
Mr. Heilman received his bachelor
of arts degree in business administra
tion from Mankato State College,
Mankato.
After his graduation he accepted a
position with the Security Bank &
Trust Company of Owatonna, Minne
sota, an affiliate of Northwest Bancorporation.

N a m e B en d e r D irecto r
Gerald H. Bender, owner and op
erator of the Watertown Hardware and
Appliance, was recently appointed di
rector of the American State Bank
of Watertown to fulfill the unexpired
term of L. C. Segner, vice president
and chairman of the board, who re
signed in February.
Mr. Segner has been a director of
the bank for 27 years. He has been ap
pointed on July 2, 1943, to fulfill the
unexpired term of his father, Alois
Segner.

S o n R ep laces F ath er

-X

■A

The banking division of the Min
nesota Department of Commerce au
thorized an increase for the Polk
County State Bank, Crookston, of
capital stock from $250,000 to $350,000 by stock dividend.

REMODELED— The Northern State Bank, Thief River Falls, has been remodeled and
expanded as shown in this picture. The interior was also included in the refurbishing.

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Federal Reserve Bank of St. Louis

The board of directors of the State
Bank and Trust Company, New Ulm,
has appointed Eldor A. Wilfahrt as a
director to succeed his father, Ernst
Wilfahrt, who is retiring.
Eldor is one of the partners in the
Wilfahrt Brothers store and is a gradu
ate of St. John’s University.
Ernst, one of the founders of the
Wilfahrt store, had been a director of
the State Bank since 1952.
Northw estern

Banker, M a y ,

1971

he board of directors of Marquette vice-president of marketing. A gradu
National Bank of Minneapolis has ate of Princeton University, he was
announced the election of five new ofwith the Valley National Bank of
ficers including the bank’s third woman Phoenix from 1955 through 1965. He
officer.
was also with the First National Bank
Gary A. Wollan was elected senior of Minneapolis and St. Anthony Vil
vice-president. New assistant vice- lage State Bank prior to joining Mar
presidents are Michael Daly and Rob quette in 1970 as marketing director.
McCampbell. Elda Johnson was
Miss Johnson joined Marquette in
elected customer service officer and 1946 and has served most recently as
a senior secretary in the correspondent
Edward Kohler, trust officer.
bank department.
Mr. Kohler joined Marquette in
1969 and was appointed trust adminis
trator in 1970. An M.B.A. graduate
of Winona State College, he was
formerly with First National Bank of
Winona.
* * *
The faculty class officers and admin
istrators of the Minnesota School of
Banking, sponsored by the Minnesota
G. 8. WOLLAN
M. DALY
Bankers Association, met recently to
plan for the school’s 1971 year. The
6th session of the school will be held
at St. Olaf College in Northfield from
June 20-25, according to Truman L.
Jeffers, school director and executive
vice president of the Minnesota Bank
ers Association. The senior class will
be returning for its second year of
study and a new class limited to 70
freshmen will be enrolled. Currently,
R. McCAMPBELL
E. KOHLER
140 Minnesota bankers are expected
Mr. Wollan will be responsible for to attend the ’71 session.
* * *
the bank’s correspondent bank and op
erations divisions. A graduate of the
Nineteen local brokerage firms in
University of Minnesota, he joined Minneapolis have established a Clear
Marquette in 1957 and was elected ing House to provide the orderly set
vice-president and data center man tlement of transactions among dealers.
ager in 1967.
Announcement of the new system was
Mr. Daly will be in charge of made by Stephen Fischer, vice presi
Marquette’s proof, transit and book dent and treasurer of Denis McCauley,
keeping departments. A graduate of Inc. and chairman of the Metropoli
the Minnesota School of Business, he tan Securities Operations Association,
joined Marquette in 1966 after seven Inc., a group of specialists in opera
years with the Northwestern Nation tional techniques in the Minneapolis
brokerage community. The new Clear
al Bank of Minneapolis.
Mr. McCampbell becomes assistant ing House is being operated for them

N o rth wfor
e ste
rn B a n k e r, M a y , ! 971
Digitized
FRASER
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Federal Reserve Bank of St. Louis

by the First National Bank of Min
neapolis.
* * *
Bruce G. McEwen has been man
ager of the First Metropolitan Travel
agency, according to an announcement
by Lloyd L. Leider, president of First
Metropolitan Travel, Inc. McEwen
formerly was group sales manager of
the House of Travel, Minneapolis.
First Metropolitan Travel is a subsi
diary of The First National Bank of
Saint Paul. It is a successor to Davis
Travel, a prominent St. Paul travel
agency for more than 20 years.
Mr. McEwen has traveled extensive
ly in Europe and South Asia and for
three years was director of overseas
programs at Macalester College. He al
so was associated with the Ford Foun
dation’s field office in New Delhi,
India, and later was director of exten
sion in international affairs at the Uni
versity of Illinois.
He is a graduate of Carleton Col
lege, Northfield, and has a master’s de
gree in political science from the Uni
versity of Illinois.
* * *
The first of seven scheduled Knot
hole Gang baseball games at Metro
politan Stadium has been scheduled for
Saturday, May 15, when the Minneso
ta Twins meet the Chicago White Sox
in a 1:15 p.m. game. The Knothole
Gang program is co-sponsored by the
Minnesota Twins and the Northwest
ern Banks of the Twin Cities area.
Under the terms of the Knothole
Gang program, youngsters (14 years
of age and under) will be admitted free
of charge with a Knothole badge to the
general admission sections of Metro
politan Stadium when they are accom
panied by at least one adult chaperone
for every five children. Adult chaper
ones need a regular $1.50 general ad
mission ticket, which can be pur
chased at the stadium, and must have

♦I

a Trust Departm ent that sets trends
When you need help with pension and profit sharing
plans or personal estate plans, turn to Northwestern.
Our Trust Department grew from the smallest to the
largest in the 9th Federal Reserve District by being
aggressive and innovative.
We offer three different types of funds to give you
maximum flexibility in personal investment programs.
We were leaders in the use of common stock as far
back as the 1940’s. The first to use convertible deben
tures. The first in this area to co-mingle funds. The
second in the country to use a special situation fund.
And the first to establish a science and technology
board that keeps our Trust Department constantly
ahead of new and emerging industries.
If you’d like to compare our investment portfolio
with that of anyone else in the country, call your North
western correspondent banker. He’ll be glad to show
you why we’re number one.
Paul Lindholm , V ice-President
C orrespondent Banking Division
372-8320

H i O W t/ltu d ^ k, K O lH f -1
M ay

Correspondent Banking Division

w e ( f i c ^ y o u to d a y ?

Northwestern
National Bank
of Minneapolis

M EM BER FEDERAL D E PO SIT IN S U R A N C E C O R P O R ATIO N

N orthw estern B anker, M a y ,

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

1971

Minnesota News

a Knothole authorization letter in their
possession.
*
* *
Northwest Bancorporation, a Min
neapolis based bank holding company,
announced that it intends to modify the
terms of its pending registration from
a proposed offering of $30,000,000 of
25-year sinking fund debentures to an
offering of $30,000,000 of 7-1/2 year
notes.
*
**
First National Bank of Minneapolis
hasannounced
the appointment of
William M.Botnan to theadvisory
committee of its West Broadway of
fice, West Broadway and Emerson.
Mr. Botnan is administrator of the
Minneapolis Clinic of Psychiatry and
Neurology, president of Medical Leas
ing Company, and a partner in the
Minneapolis Clinic Building Company.
He resides in Hamel.

H au gen As V ic e P r e sid e n t
At the annual shareholders meeting,
Roger W. Haugen was named vicepresident and trust officer of the First
National Bank of Hastings.
Before that he was employed at the
Stearns County National Bank in Al
bany. He later became assistant cashier
and loan officer at the Crookston Na
tional Bank of Crookston.

N ew B u ild in g A n n o u n c e d
The Merchants State Bank of North
Branch, Minnesota, announces that
contracts have been let for the erection
of a new bank building.
The building will be 75 feet in
width and 43 feet deep. Curved walk
ways will lead up to the front en
trance, with landscaping provided to
give the site an attractive appearance.
The actual size of the property on
which the building will be located is
150 by 125 feet. A large parking
area will be provided with entrances
to it from both streets.

B eh m N a m ed L oan O fficer
Kenneth Behm has recently been
named farm loan officer of the Home
State Bank of Kandijohi according to
an announcement by Reuben E. Skeie,
president. Mr. Behm is to replace E.
R. Backlund who is retiring from ac
tive participation as director and vice
president.
Mr. Behm was formerly an assistant
manager of the Federal Land Bank As
sociation in Willmar for two years fol
lowing his graduation from the Univer
sity of Minnesota. He then managed
N o rthw estern

Banker, M a y ,

1971

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

4 G e n e ra tio n s

rectors, a position he held at the time
of his death.

M ankato P r o m o tio n s
Several officer promotions have
been announced by John N. Maiers,
president of the Valley National Bank
of North Mankato.
Daniel J. Coughlan, president of the
Mankato Stone Company, has been
elected chairman of the board of the
bank to succeed his brother, Robert
W. Coughlan, who died recently.

IF YOUNG Brock Christianson de
cides to enter the banking business
when he grows up, no one in Elbow
Lake, Minn., will be surprised. He
would be the third generation of
Smiths in banking. Brock is pic
tured in the lap of his great-grand
father, Harold A. Smith, who this
year joins the “ 50-year club’’ of the
Minnesota Bankers Association. Mr.
Smith, who lives in suburban Min
neapolis, is a director and board
chairman of the Bank of Elbow
Lake. Also pictured are his son,
Larry, president of the bank, and
the latter's daughter, Mrs. Robert
Christianson, Brock's mother. It is
no coincidence th a t all four are
Lutheran Brotherhood members.
Harold Smith is president emeritus
and a form er financial vice presi
dent and board member of the
Minneapolis-based fraternal insur
ance society. He now is an invest
ment
consultant
fo r
Lutheran
Brotherhood.

the Federal Land Bank of Pipestone
for two years, and the combined Pipestone-Worthington Land Bank for the
next three years.

In crease C apital Stock
The State of Minnesota banking di
vision has announced approval of an
amendment increasing the amount of
capital stock of the Western State
Bank of Marshall from $200,000 to
$600,000 by stock dividend.

G eorge A. D u n b a r
George A. Dunbar, 79, longtime
Rock County banker, died recently fol
lowing a long illness. He was formerly
a vice president and cashier of the
Beaver Creek State Bank. After retir
ing from active participation in the af
fairs of the bank ten years ago, he
served as a member of the board of di-

D. COUGHLAN

BASTIAN

T. COUGHLAN

Bernard B. Bastian, cashier, has also
been elected vice president. He takes
up the duties of Dennis D. Anderson,
who resigned as vice president to be
come chief executive officer of the
Farmers State Bank at Sherburn.
T. William Coughlan, formerly of
the National Bank of Commerce in
Mankato, was elected assistant vice
president of Valley National. Earlier,
he had been employed by the Regional
Administrator of National Banks in
LaCrosse sub-regional office.

T o S tu d y S ecu rity R isks
New crimes against banks will be
stressed at the Third Annual National
Bank Security Conference to be held
at Chicago’s Marriott Motor Hotel
July 11-13.
The meeting — sponsored by Bank
Administration Institute — will exam
ine the latest security risks to senior
bank management: threats of kidnap
ping, violence, blackmail and other
forms of extortion.
“External crimes against banks have
taken a more personal nature” com
mented BAI president, Charles A.
Agemian, in announcing the confer
ence. “Today the banker as well as the
bank is in grave danger, and this cre
ates an entirely new dimension to bank
security.” Mr. Agemian, who is chair
man of the board, Garden State Nation
al Bank, Hackensack, New Jersey, said
the conference would open Sunday
July 11 with registration and review
of exhibits. The program will get un
derway, Monday morning, July 12,
with a general session.

DISCOVER DON IOHNSON... A BANKER WHO CARES
Meet the bankers who care, and care about you at the
American. Don Johnson is just one of the many depend
able experts in the Correspondent Banking Department
at the American.
Serving correspondents successfully requires sound
counseling, cooperative loan participation, modern data
processing equipment and in-depth banking expertise.
You get all of these and more at the American.
You can depend on the highest professional stan
dards, business integrity, responsibility, and complete
satisfaction, too! Not only from Don, but from everyone
at the American.
Your American National representative will see you at the North
Dakota and South Dakota Bankers conventions.

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Federal Reserve Bank of St. Louis

And to these essential ingredients, the American offers
you one more . . . our own special brand of service. At
American National Bank, this means more than just a
friendly smile . . . although we have that, too. What it
really means is building a special kind of sound and solid
business relationship that’s based on trust and confidence.
Discover the people at the American, we care about
your banking.

o American

Rational T ia n kjin d "Trust Company^
7th& “Robert 228-2345 St.Raul, Winn.55101
M e m b e r F. D. I. C.

N orthw estern Banker, M a y ,

1971

Minnesota News

It’s
Convention
Tim e!
We look
forward
to seems;
all of f
our friends.

Gilbert R. Falk Ralph L Brown
NORTH DAKOTA
May 12 ,1 3 ,1 4

John W. Ordos
SOUTH DAKOTA
MAY 20, 21
THE BANKWITH THE BIG WELCOME

Midland
National Bank
o f Minneapolis
Call 332-0511
401 Second Ave. So. • Minneapolis, Minn. 55480
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 ratio n

N o r t h w efor
s t eFRASER
rn B an ker, M a y , 1971
Digitized
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Hank T arget —
K id M arket!
s there any return in a bank aiming
an advertising campaign at chil
dren?
That’s an important question today
in banking circles.
An answer to that question is what
First American National Bank of
Duluth was seeking with a 13-week
sponsorship of the "Romper Room”
children’s program on WDIO-TV,
Channel 10, Duluth.
“Romper Room” is an internation
ally-syndicated format for locally-pro
duced programs, with an educational
emphasis, designed for pre-school chil
dren.
The show is televised in Duluth
from 9:00 to 9:30 a.m. Monday
through Friday.
First American contracted for a
one-fourth sponsorship — for one of
the four 60-second spots in the show
each weekday for the 13-week period.
Four weeks after the sponsorship
began, First American launched its
test.
Miss Sondra Sorvari, local “Romper
Room” hostess, started using First
American’s daily 60-second spot on a
Monday to announce that she would
be at the bank the following Friday
from 2 to 3 p.m.
This commercial proclaimed the
event as First American’s “Children’s
Day” and noted there would be a
drawing for prizes, opportunity to ride
the bank’s escalator and a free bank
and a $1 contribution from First
American to any “minor” savings ac
count opened.
“Miss Sondra,” as she is known
professionally, used the First Ameri
can daily 60-second spot for this
purpose Monday, Tuesday, Wednes
day, Thursday and Friday— “Chil
dren’s Day’’ at the bank.
First American officers point out
that theirs is a downtown bank and
that more than a little effort is re
quired on the part of parents to take
pre-school children downtown for an
event scheduled on Friday afternoon.
What were the results of the promo
tion. First American officers outlined
them this way:
• Parents and children began arriv
ing at the bank for the 2 p.m. event at
1:30 p.m.—with money to open
and add to existing accounts in con
tainers ranging from coin banks to
paper bags.

* There were 150 registrations for
the prize drawing.
* Estimates of total children at
tracted by the event ranged up to 250.
* Thirty-five new “minor” savings
accounts were opened that Friday.

THE WINNER of the grand prize at
“ Children’s Day” at First American Na
tional Bank, Duluth, with Miss Sondra
Sorvari, local “ Romper Room" hostess,
and Leonard E. Griffith, First American
vice president, marketing.

* Deposits were made in many
existing “minor” savings accounts.
* And, an “impressive” number of
new minor accounts were opened and
deposits made in existing minor ac
counts the week of the promotion.
What was First American’s reaction
to the test?
One First American officer summed
it up this way: “I expected we’d attract
a total of no more children than the
number who actually opened new ac
counts on ‘Children’s Day’— 35.”
Another enthusiastically stated the
promotion was “extremely successful.”
A third’s opinion is as obvious as
his exclamation: “Some of the kids
who came at 1:30 stayed until 3 p.m.
when Miss Sondra left.”
But, the official First American
reaction to the test is best expressed
by the fact that Miss Sondra of
“Romper Room’’ was invited to pre
side at a second “Children’s Day at
First American.”

H old O p en H o u se
D. W. Loe, president of the Farm
ers and Merchants State Bank of
Sacred Heart, has announced that an
open house was conducted recently on
the occasion of completion of the re
building of the bank, both interior and
exterior. The project was underway for
a number of weeks and only recently
reached the completion point.

Gil
Falk

John
Ordos

Ernie
Pierson

M idland’s
team
w ill be
dropping
in...
If’you have a ‘basket full’of operational hang-ups—let
Midland’s Full Service Team ‘coach’ you. We’ll help on
investments, credits, collections, data processing or sys
tems and procedures. Our Team travels far and wide
with no tricky ‘ball handling’.They’ll ‘guard’your safe
keeping items and will always give you ‘forward’ think
ing on financial problems. You take no ‘long shots’ with
the men of Midland. Every play is a ‘lay-up’ to the scoreboard—we’ll help you score big and fast—with no 'floor
burns’ or penalties. Take a tip—call one of Midland’s
Fabulous Front Five-TO D A Y !
612/332-0511

Loren
Herbst

Midland National Bank
Ralph
Brown

o f Minneapo
r Y/’' t"
4 0 1 Second Avenue S outh • M inneapolis, M in n e s o ta 5 5 4 8 0
M e m b e r Federal D ep o s it In su ra n c e C orporation

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Northw estern

Banker, M a y ,

1971

ONE-THIRD OF OUR
LISTENING POWER!
Armed with an agricultural back He’s one-third of Security Na
ground and five years experience tional's Correspondent Banking
as a Farm Loan Representative Team —Feel free to call on their
for John Hancock Life Insurance experience and knowledge in
Company, Ed Leahy will listen, helping you serve your com
analyze, and help solve your munity.
problems!

N o rthw estern

Banker, M a y ,

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

1971

Ed, John Diefendorf and Tomt
Horn will be at the South Dakota
State Bank Convention to listen
to you—Bend their ears!
It all adds up to better corres
pondent banking for you from
Security National Bank!

South D akota B an kers
A ssociation 79th C onvention
R am ad a In n , S io u x F alls
M ay 2 0 - 2 1 , 1 9 7 1

L. L. STEELE

he 79th annual convention of the South Dakota Bankers Association will con
vene at the Ramada Inn in Sioux Falls on Thursday, May 20 and adjourn
after the entertainment Friday evening, May 21.
Leland L. Steele, president of the SDBA and executive vice president of the
Farmers and Merchants Bank, Huron, will preside at the convention. Besides Mr.
Steele, officers of the SDBA for the past year have been Orville L. Bonacker, first
vice president and vice president of the First National Bank, Sioux Falls, and
Morris G. Winter, second vice president and president of the Andes State Bank,
Lake Andes. Neil Milner of Huron is the executive secretary-treasurer of the as
sociation.
Kickoff event for the convention will be the annual golf tournament, with
tee-off at the Minnehaha Country Club scheduled for 7:00 a.m., Thursday. There
will be a Grand Trophy and, for those 55 and older, a special Senior Division
Trophy, as well as other awards and prizes.
The Annual Bowling Tournament will be held at the Sport Bowl from 2:00
to 4:00 p.m., Thursday. NORTHWESTERN BANKER will donate the Grand
Trophy again to the South Dakota banker with the high scratch series, and the
SDBA will offer four other trophies.
The fifth annual Joint Social Hour will be held at poolside at the Ramada
Inn from 5:30 to 7:00 p.m., Thursday. It will be hosted by the associate mem
bers of the SDBA.
Two general sessions will be held on Friday with one of the highlights and
address Friday morning by Clifford C. Sommer, president of the American Bank
ers Association and president of the Security Bank and Trust Company,
Owatonna, Minnesota.
The complete program follows:

F. K. SPINNER

O. L BONACKER

R. MORTHLAND

C. L SEAMAN

N. MILNER

Thursday, May 20
A.M.
7:30
P.M.
2:00
5:30

Annual Golf Tournament—Minnehaha Country Club. Scores must be
posted by 4:30 p.m.
Annual Bowling Tournament— Sport Bowl.
Fifth Annual Joint Social Hour. Sponsored by associate members of the
SDBA— chairman of the event, Philip Broom, of the First National Bank
of St. Paul, St. Paul, Minnesota.
Friday, May 21

C. C. SOMMER

P. SEARLE

A.M.
8:00

State Bankers Committee Breakfast—Oak Room, Ramada Inn.
Central States Graduate School of Banking Breakfast—North Room,
Ramada Inn.
9:00-11:00 Trust Workshop with Philip Searle, author of The Management
of a Trust Department—Viking Room, Ramada Inn.
9:00 First General Session.
Call to Order—Leland Steele, presiding; president, South Dakota Bank
ers Association; executive vice president, Farmer and Merchants Bank,
Huron.
Presentation of colors— Sioux Council, Boy Scouts of America.
National Anthem— Paul Wegner, Sioux Falls.
Marv Gardner, accompanist.

SOUTH DAKOTA CONVENTION . . .
(Turn to page 64, please)

G. H. WALTNER
N orthw estern

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Federal Reserve Bank of St. Louis

C. A, LOVRE

Banker, M a y,

1971

What his banker
prescribed for Dr. Bormes
was g ood m edicine
for A berdeen, S.D.

Left to Right: Avery Fick, Dr. Bormes and his local independent banker, Emery Stohr.

Marquette's participation with an independent
banker helped a doctor build his hospital.
The tow n had a need. Dr. Robert Bormes
had an inspiration. Local independent
banker, Emery Stohr wanted to help. And
Avery Fick, Marquette's triend to inde
pendent banks in South Dakota, had the
answer. A participating loan to pay the
construction costs of a new, 100-bed hos
pital for the people of Aberdeen. One
real example of how Marquette's cor
respondent banking team helps indeN o rthw estern

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Federal Reserve Bank of St. Louis

1971

pendent bankers meet the money needs
of their com m unities.
At Marquette, independent banking
business heads the list of our priorities.
We help you grow by helping your
com m unity prosper. That's what cor
respondent banking at Marquette is all
about. And w hy men like Avery Fick
are there when you need them most.

MEET MARQUETTE AT
DAKOTA CONVENTIONS
N. D. Bankers Association: Fargo, May 12-14.
V isit w ith Bill A ddington, Bill Rosacker and
Gary Wollan.
S. D. Bankers Association: May 20-21. Visit
with Avery Fick, Gary Wollan and Jay Tomson.

lé*
ill ■ -

m#®' *
*
ms

wESZ ag

They help you grow by helping your com m unity prosper.

Avery G. Fick

Otto H. Preus

Bill Addington

Bill Rosacker

Len Erickson

Jim Olds

370-2166

370-2167

370-2165

370-2164

370-2168

370-2161

Correspondent Banking Department

Marquette National Bank
CORRESPONDENT BANKING DEPARTMENT • 8th at Marquette • Minneapolis, Minnesota 55480 • (612) 370-2161
Member F.D.I.C.

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1971

South Dakota News

SDBA C onvention C om m ittees
hairmen and members of three
^
committees for the South Dakota
Bankers Association annual conven
tion in Sioux Falls, May 20-21, have
been appointed as follows:

Charles Undlin. First National
Bank of the Black Hills, Rapid City.

Walter Pailing, National Bank of
South Dakota, Rapid City.
Robert Petschow, Corn Exchange
Bank, Elkton.

SDBA Resolutions Committee
Glen Waltner, chairman, First Na
tional Bank, Freeman.
Larry Arend, Security State Bank,
ABA Nominating Committee
Alexandria.
Ken Klatt, chairman, Dakota State
Eugene Erickson, Southern Hills
SDBA Nominating Committee
Bank, Tripp.
Bank, Edgemont.
Curtis Lovre, chairman, Northwest
J. S. Holdhusen, Ipswich State
Robert Franzen, First State Bank, A
ern National Bank, Sioux Falls.
Bank, Ipswich.
Pierpont.
Harold Haynes, Spink County
Scott Lovald, First National Bank,
Robert Habberstad, Farmers &
Bank, Redfield.
Philip.
Merchants State Bank, Iroquois.
Curtis Mateer, Pierre National
Harold Torness, Roberts County
R. M. Hahn, First National Bank,
Bank, Pierre.
National Bank, Sisseton.
Sioux Falls.
Neal Jacobson, Bryant State Bank,
Bryant.
Ken Lahti, Bank of Belle Fourche,
Belle Fourche.
Allen Larson, Farmers State Bank,
yWinner.
r
John Lillibridge, Burke State Bank,
Burke.
C.
P. Moore, First National Bank,
Aberdeen.
Raymond Nelson, Big Stone State
Bank, Big Stone City.
Earl Nixon, Dakota State Bank,
Milbank.
Stan Peterson, Bank of Lemmon,
Lemmon.
Cecil Richter, Sully County Bank,
Onida.
Walter Schirber, First Security
Bank, Morristown.
Larry Ticknor, United National
Looking Forward To Seeing
Bank, Vermillion.
Caro Id Tofte, Bank of Bruce, Bruce.
Robert Wuttke, First Potter County
O ur South Dakota Banker Friends
Bank, Gettysburg.

A t The
7 9 th Annual South Dakota Convention
in
Sioux Falls - M a y 2 0-21

NORTHWESTERN NATIONAL BANK OF SIOUX CITY, IOWA

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1971

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Federal Reserve Bank of St. Louis

M itch ell B ank ‘’"On-Line”
The Commercial Trust and Savings
Bank, Mitchell, now has direct access
to all of the data processing capabili
ties of the IBM 360 computer in the
Security National Bank, Sioux City,
through the use of an IBM Remote
Terminal. The terminal is referred to
as the 1255-2770 Data Communica
tions System.
The system includes a magnetic ink
reader-sorter, a key punch machine,
a punchcard reader, a printer, and a
data phone communication between
the terminal and the computer center.
The system is reportedly the only one
of its kind in the state.
Boyd Knox, president of the Mitch
ell bank, said that the bank is now us
ing the remote terminal for transmis
sion of all checking account informa
tion, data control of savings, loan and
other services of the bank.

Y o u r H e lp in g H a n d H o s ts
AT THE SOUTH DAKOTA BANKERS CONVENTION
H. Ivan Steen, Vice President
Richard 0. Wold, Vice President
Tim Stern, Manager of Colonial Office
Arnold E. Amundson, Manager of Stockyards Office
Stephen P. Olson, Manager of Westwood Office

Curtis A. Lovre, President
W. J. Heimerman, Senior Vice President
Melvin J. Berens, Vice President
James K. Kopperud, Vice President
Jack H. McMillan, Vice President

"K Jo r t h w e s t e r n
n
DOWNTOWN
9th & M A IN

Brookings,

a
I
I

Chamberlain,

STOCKYARDS
8 2 8 £. RICE ST.

Dell

Rapids,

b a j n t i c

I COLONIAL
I

Gregory,

2 6 th & M IN N .

Huron,

Lake

I WESTWOOD
I

1 2t h & K I W A N I S

Preston

Madison

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Banker, M a y ,

1971

South Dakota News

South D ak o ta B an kers H old A g C onference

AN OUTSTANDING program of speakers and an excellent turnout of bankers combined to make the 1971 Annual Agricultural Con
ference of the South Dakota Bankers Association a success. The program was held in Chamberlain last month. Included In the
speakers were the above men, left to right: Burdette Solum, chmn. of the SDBA ag comm, and v.p., 1st Natl., Watertown; Neil
Milner, exec. secy, of the SDBA; Leland Steele, pres, of the SDBA and exec, v.p., Farmers & Merchants, Huron; Henry Schelle,
pres., Tri-County State, Chamberlain; Dan Schwitters, John Deere dealer, Cedar Rapids, la.; Mr. Solum, and Marv Campbell, pres,
of the Minnesota Bankers Assn., who has just resigned as pres., 1st Natl., Crookston, to become pres., Citizens State, Brainerd.

F ran k D u ffy G en eral C h airm an
F or South D akota C onvention
chairman for the 79th an
G eneral
nual convention of the South

Erling Haugo, president, Valley Na
tional Bank.
C. D. Gregg, president, Western
State Bank.
Chairmen and members of the com
mittees making arrangements for vari
ous services and functions at the con
vention are as follows:

Dakota Bankers Association is Frank
Duffy, president, Union Bank & Trust,
Sioux Falls.
Executive officers of the host banks
are:
W. W. Baker, president, First Na
tional Bank.
Golf Tournament
D.
W. Westbee, president, Na
H.
Ivan
Steen, vice president,
tional Bank of South Dakota.
Northwestern
National
Bank of Sioux
Curtis A. Lovre, president, North
Falls.
western National Bank.
Frank Duffy, president, Union Bank
Bowling Tournament
& Trust.
Verlyn C. Schmidt, vice president,
Western State Bank.

F. E. DUFFY

H. I. STEEN

V. C. SCHMIDT

D. G. HESSEL

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Federal Reserve Bank of St. Louis

1971

Registration Committee
Curtis W. Kuehn, vice president,
Western Mall Bank, First National
Bank of Sioux Falls.

You W ill See Them
a t th e South D akota
C onvention
metropolitan bank
T heers, following
service and equipment dealers
have indicated they will be attending
the South Dakota Bankers Associa
tion’s 79th annual convention in Sioux
Falls, May 20-21.

Chicago
Continental Illinois National Bank
& Trust Company: Leonard W.
Busse, and Stephen A. Melcher, assist
ant cashiers.
Publicity
First National Bank: Clarence E.
David G. Hessel, vice president
marketing, eastern division of the Na Cross, Jr., assistant cashier, and Wil
liam E. Bennett, representative.
tional Bank of South Dakota.
Kansas City
Transportation Committee
Commerce Bank: T. C. Cannon,
G.
D. Hansen, executive vice presvice president.
ident, Valley National Bank.
Minneapolis
First National Bank: Kenneth A.
Wales and George S. Henry, vice pres
idents; Fred Haw, assistant vice presi
dent, and Brian Gilchrist, correspond
ent bank officer.
Marquette National Bank: O. Jay
Tomson, executive vice president;
Gary B. Wollan, senior vice president,
and Avery G. Fick, vice president.
Midland National Bank: John W.
Ordos,
assistant cashier.
G. D. HANSEN
C. W. KUEHN

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Federal Reserve Bank of St. Louis

South Da kot a N e w s

South D akota C onvention
(Continued from page 57)
Invocation
Rev. Ray C. Jones, First Congregational Church, Sioux Falls.
Welcome to Sioux falls the Hon. M. E. Schirmer, mayor of Sioux Falls.
Keynote Address—Clifford Sommer, president, Security Bank and Trust
Company, Owatonna, Minnesota, and president, American Bankers As
sociation.
President s Address—Leland L. Steele, executive vice president, Farm
ers and Merchants Bank, Huron.
Report of the SDBA Resolutions Committee— chairman, Glenn Waltner,
president, First National Bank, Freeman.
Address—Frank Spinner, vice president, First National Bank of St.
Louis, St. Louis, Missouri.
Noon
12:00
PM .
2:00

Announcements and Adjournment for Luncheon

First National City Bank: C. Nor- >
man Gustafson, assistant cashier.
Manufacturers Hanover Trust: Earl r
H. Lundin, Jr., assistant secretary.
Omaha
First National Bank: Bob Brown
and Don Ostrand, vice presidents.
Omaha National Bank: Frank Starr,
president & chief operating officer;
Dave Johnson, vice president; Marvin >Rohn, assistant loan officer, and Delmar Olson, marketing officer.
United States National Bank: Jay ^
Bordewick, vice president.
Saint Paul
First National Bank: Lloyd L. Leid- y
er, executive vice president; John E.
Raymond, vice president; Phil Broom,
correspondent bank officer, and Ron
Olson, investment officer.

Second General Session—Call to Order—Leland L. Steele.
Presentation of 40-50 Year Pin Awards—Neil Milner, executive
secretary-treasurer, South Dakota Bankers Association.
Sioux City
"Keep Your Eye on the Feds”—Rex Morthland.
First
National
Bank: Charles H.
president, Peoples Bank and Trust Company, Selma, Alabama.
Walcott,
senior
vice
president; R. C.
"Banking Opportunities of the Seventies”—Philip Searle,
Taylor,
vice
president
& cashier; Gary
president, BancOhio Corporation, Columbus, Ohio.
Stevenson, and Mike Broderick, assist
Report of the SDBA Nominating Committee—Curtis A. Lovre, chair
ant vice presidents.
man, president, Northwestern National Bank, Sioux Falls.
Northwestern National Bank: Stan- si
Election of Officers.
ley
W. Evans, president, and Edward j
Installation of Officers.
L.
Newell,
vice president.
*]
Acceptance address by President-elect.
Security National Bank: Thomas
Meeting of the South Dakota Members of the American Bankers__
Horn, executive vice president; and
C harles Seaman, presiding, South Dakota ABA vice president, president,
John
A. Diefendorf, vice president,
First National Bank, Warner.
and
Edward
J. Leahy, assistant cash
Drawing for 1971 Attendance Prize.
ier.
|
4:30 Announcements and Adjournment.
Toy
National
Bank:
Richard
A.
5:30-7:00 President’s Reception— Poolside, Ramada Inn.
Breyfogle, vice president, and Stan W.
7:30 Banquet and Entertainment— Sioux Falls Coliseum—Frank Duffy, presi
Fredericks, assistant cashier.
dent, Union Bank & Trust, Sioux Falls, and general chairman of the con
Bank Equipment and Other Firms
vention, Master of Ceremonies.
Chiles, Heider & Company: Jim
9:30 Announcements and formal convention adjournment.—END
Michels.
Northwestern National Bank: C.
New York
Dain, Kalman & Quail: Mike
Paul Lindholm, vice president; Robert
Chase Manhattan Bank: J. J. La- Dougherty, bond department.
B. Wheeler, data services officer, and Russo, assistant treasurer.
Dawson Hail Insurance: James R.
Iom Hayden, correspondent banking
Chemical Bank: S. Snowden Huff, Dawson, president, and Lyle C. Askerooth, vice president.
officer.
assistant secretary.
Diebold, Incorporated: Laird Gillem, sales representative, and Lee Sut
ton, regional manager.
Kirchner, Moore and Company:
Terry Ward.
F R E D E R IC K S , C L A R K & CO., INC.
Piper, Jaffray & Hopwood: Richard
INVESTMENT BANKERS
H. Larson and Doug Rogers.
The Protective Group: C. D. Nor
GREETINGS TO OUR
ris, vice president, Bill McMullen and
Cal Opsahl.
SOUTH DAKOTA BANKING FRIENDS
Scarborough & Company: Norman
Gerry Clark
Clark, executive vice president.
Harold N. Thomson
John Hook
United States Check Book Com
pany: Fred E. Pfaff, vice president;
203 Minnesota Federal Building • Minneapolis, Minn. 55402
Dwight Bos, and Loren Anderson, rep
Telephone (612) 338-0571
resentatives.
Van Horne Investments: Robert J.
Kirkendall, registered representative.

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Federal Reserve Bank of St. Louis

1971

it does make a difference where you bank!
So, bank
with the bank
that helps you
get things
F
done
Ui
OVERLINES
T
TRUST SERVICES
\
I
CLEARING OF ITEMS
■
STOCK TRANSFER AGENT
\ 'M
:'i
INVESTMENT COUNSELLING V f '
% FASTER COMPUTER SERVICES, SECURITY PURCHASES AND SAFEKEEPING
MIKE BRODERICK

Assistant Vice President
DICK TAYLOR
Vice President

GARY STEVENSON
Assistant Vice President
CHARLES WALCOTT
Senior Vice President

W e’ll b e s e e in g y o u a t th e S o u th D a k o ta B a n k e rs '
A s s o c ia tio n C o n v e n tio n , M a y 20-21 in S io u x F a lls !

ir s t N a t io n a l B a n k
J] DEPOSITS INSURED TO $20,000 BY F.D.I.C. V Ì I

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1971

S ÌO M & C H ty

TH E P R O T E C T IV E G R O U P
O FFER S NEW W AYS
TO AD D NEW P R O FITS
FOR YO UR BANK . . .

It’s simple with Golden Circle coverages.
Wanted and needed plans that complete
your circle of customer service while
they add quick and consistent new
profits. Modern plans with simplified
underwriting requirements that protect
you and your customers. Other plans
that offer protection, savings and
estate building features. Eight plans
in all that form a golden circle of
opportunity for you.

The Protective Group
LIFE. HEALTH AND GROUP INSURANCE

MINNESOTA PROTECTIVE ASSOCIATION
MINNESOTA PROTECTIVE LIFE INSURANCE COMPANY
2 8 0 0 W A Y Z A T A B O U L E V A R D . M IN N E A P O L IS , M IN N E S O T A

. . .

N o rthw estern

LEADING THE WAY TO MORE PROFITABLE BANKING BUSINESS.

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1 97 1

55405

67
T h u rsd a y , M a y 13

N orth D akota B ankers
A ssociation 86th C onvention
F argo
May 1 2 -1 4 , 1 9 7 1

peeches by the president of the cine, will address the Thursday morn
American Bankers Association, a ing general session.
lady bank executive, a doctor from the At the Friday morning session,
University of Wisconsin, the adminis bankers will hear Thomas Kleppe of
trator of the Small Business Adminis the SBA in Washington and Dr. Ed
tration, and a bank economist from Reed, vice president and economist at
Portland, Oregon, will be featured at the U.S. National Bank, Portland.
There will also be a full quota of en
the 86th annual convention of the
North Dakota Bankers Association at tertainment at the convention, with a
concert by the Moorhead State College
the Elks Club in Fargo, May 12-14.
Stage Band, golf and bowling tourna
C l i f f o r d C.
ments,
and dinner and dancing at the
Sommer, p r e s inew Eagles Club and at the Elks Club.
dent of the ABA
Presiding at the convention will be
and of the Secu
Robert V. Wells, president of the Se
rity Bank & Trust
curity State Bank, Robinson, and pres
Company, Owaident of the association. His fellow of
tonna, Minnesota,
ficers for the past year have been: T.
will address the
A. Solheim, president of the American
Thursday, M a y
State
Bank, Minot, first vice president;
13, luncheon of
Donald J. Lessard, president, Walsh
the convention.
County State Bank, Grafton, second
A n n a Foster,
R. V. WELLS
vice president; Robert Hendrickson,
vice president of
the Valley National Bank, Phoenix, president of the First National Bank
Arizona, and Dr. Robert Samp, Uni & Trust Company, Fargo, treasurer
versity of Wisconsin School of Medi- and the permanent secretary of the as
sociation, William J. Daner, Bismarck.
The following are the details of the
program as available at press time:

W ed n esd a y , M a y 1 2

Noon
12:00 Registration-Elks Club.
P.M.
6:30 President’s Reception—Elks
Club. Dinner and dancing.
T. A. SOLHEIM

W. J. DANER

C. C. SOMMER

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Federal Reserve Bank of St. Louis

A. FOSTER

A.M.
9:00 Registration—Elks Club.
9:45 Call to Order— Robert V.
Wells, president of the North
Dakota Bankers Association;
president, Security State Bank,
Robinson.
Invocation.
“Women in Management”—
Anna Foster, vice president,
Valley National Bank, Phoe
nix.
“Facts of Life, Health & Hap
piness”— Dr. Robert Samp,
School of Medicine, University
of Wisconsin.
Noon
12:00 Luncheon.
Speaker— Clifford C. Sommer,
president of the American
Bankers Association; Presp
dent, Security Bank & Trust
Company, Owatonna, Min
nesota.
P.M.
2:00 Golf Tournament.
2:00 Bowling Tournament.
6:00 Dinner and Dancing at the Eag
les Club.
F rid a y , M a y 1 4

A.M.
9:30 Call to Order— President Wells.
Business Meeting.
Resolutions Committee Re
port.
President’s Report.
ABA State Meeting.
“The Banking Community &
S.B.A.”—Thomas Kleppe, ad
ministrator, Small Business
Administrator, Washington, D.
C.
“Looking Inside the *70’s”—
Dr. Ed Reed, vice president
and economist, United States
National Bank, Portland, Ore
gon.
Noon
12:00 Adjournment—End.

R etires at B a n k o f N .D .

R. SAMP

E. W. REED

Alton Swanson has retired from the
Bank of North Dakota, Bismarck. Mr.
Swanson, who has been in charge of
purchasing, supplies, and printing, has
been with the bank for over twentyeight years. He is 68 years old.
Employees presented Mr. Swanson
with a diamond tie tack and combina
tion barometer-thermometer wall plaque
at a coffee party held at the bank on
recently.
N orthw estern Banker, M a y ,

1971

North D a k o t a N e w s

G o lf

NDBA C onvention C om m ittees

Dave Gordon, trust officer, Fargo
National Bank & Trust Company.
B o w lin g

Art Cooper, assistant cashier, Mer
chants National Bank & Trust Com
pany.— End.

P r o m o te d at D ic k in so n

A. COOPER

L. D. HOVLAND

G. W. SCHWARTZ

R. 0. OLSON

eneral chairman for the 86 th an
nual convention of the North
Dakota Bankers Association at Fargo,
May 12-14, is Earl W. Johnson, vice
president of the Merchants National
Bank & Trust Company, Fargo.

Executive of
ficers of the host
banks are:
D. D. GORDON

W. R. Braseth,
president of the
F a r g o National
Bank & T r u s t
Company.
A. M. Eriksmoen, president
of the Dakota Na
tional Bank &
Trust Company.

S. A. STAPHER

Chairmen of the other convention
committees, all from Fargo, are:
R eg istra tio n & R ese rv a tio n s

George Schwartz, assistant vice
president, First National Bank & Trust
Company.
E. W. JOHNSON

R. D. Harkison, president of the
First National Bank & Trust Company.
A. K. Simpson, president of the
Merchants National Bank & Trust
Company.
Eugene Rich, executive vice presi
dent of the State Bank of Fargo.
The steering committee consists of
Messrs. Braseth, Eriksmoen, Harki
son, and Simpson.

P rogram

Earl W. Johnson, executive vice
president, Merchants National Bank &
Trust Company.
B a n q u et & S o cia ls

Bob Olson, vice president, Fargo
National Bank & Trust Company.
E n terta in m en t

Stan Stapher, vice president and
cashier, Dakota National Bank & Trust
Company.
T ra n sp o rta tio n C o m m itte e

Lyndon Hovland, assistant vice
president, Merchants National Bank &
Trust Company.

Mrs. E. A. Nachtwey, president of
the First National Bank and Trust
Company of Dickinson, has announced
the promotion of DuWayne Schwindt ^
and LeRoy Hamre to the position of
assistant cashier. Both men are as- *
signed to the installment banking de
partment.
Prior to joining the bank in 1970,
Mr. Schwindt and Mr. Hamre were
employed by Universal C.I.T. Credit *'
Corporation in managerial capacities.

L eg isla tive R esu lts

he North Dakota Legislature re
cently concluded its 1971 session,
after considering over 1,200 bills hav- <
ing a bearing on banking. According
to the North Dakota Bankers Associ
ation, over 80 of the bills would have v
directly affected banking—not just the
business community in general.
Following are several bills that were
passed and would affect banking di
rectly, as reported by the NDBA:
HB 1204— Uniform Minor Student
Capacity to Borrow Act. Loans to per
sons 16 years of age or older are enforceable if the loan was to finance a
higher education.
SB 2038— Raised the minimum fee
for examination of state banks from
$200 to $500 and the maximum from
$3,000 to $4,500.
SB 2063— Sets interest ceilings on ^
bonds, warrants, and certificates of in
debtedness of political subdivisions at
eight per cent where private sales, and
no ceiling on public sales and issues
involving over $100,000.
SB 2275— Creates a Bank of North
Dakota trust to hold unpaid guaran
teed student loans, authorizing issu
ance of special coupon bonds of the
state against such loans which are elig
ible for investment by banks and trusts.
SB 2299—Defines a retail seller un
der the 1-1/2 per cent per month al
lowable revolving charge account law
as including a bank issuing a credit
card for advancement of money or sale
of goods or services.

NO RTH DAK O TA NEW S . . .

(Turn to page 78, please)
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1971

North D a k o ta

News

„ You W ill See Them a t th e

N orth D akota C onvention
he following metropolitan bankservice and equipment dealers
have indicated that they will be
tending the North Dakota Bankers As
sociation’s 86 annual convention in
Fargo, May 12-14.

T
.

-A

C hicago
C o n tin en ta l Illin o is N a tio n a l B an k
& T rust C om p any: Stephen A . Mel-

cher, assistant cashier.
F irst N a tio n a l

B an k :

D uluth
C ity
N a tio n a l

N orthern

Robert M. Hammerstrom,
vice president.
C om m erce

K ansas City
B ank: T.

N ew Y o rk
C h a se M a n h a tta n B ank:

J. J. La-

Russo, assistant treasurer.
C. Nor
man Gustafson, assistant cashier.
F irst N a tio n a l C ity Bank:

William E.

Bennett, representative.
,

Paul
Lindholm, vice president; Howard
Luick, correspondent banking officer
at
and Chuck Maddux, data service of
ficer.
N o rth w e ste rn N a tio n a l B ank:

B ank:

assistant

C. Cannon,

^ vice president.

S aint Paul
A m e r ic a n N a tio n a l B a n k and T ru st
C om p an y:
F irst N a tio n a l Bank: John Ray

mond, Donald Buckman and Richard
Swanberg, vice president, and Ron Ol
son, investment officer.
W innipeg
T h e R o y a l B an k o f C anad a: A . B.

M inn eap olis
M arqu ette N a tio n a l B an k :

Reimer, manager, commercial-indus
trial development.

M id lan d

M inn eap olis
F ir st N a tio n a l B an k: George Henry,
and Kenneth A . Wales, vice presidents;

Falk, senior vice president, and R. L.
Brown, vice president.

Robert Gruman, and Don Bergurn, as
sistant vice presidents.

Bill Ad
dington, assistant vice president, and
Bill Rosacker, correspondent bank of
ficer.
N a tio n a l

B an k:

M K. Simpson

N e w Y ork
M a n u factu rers H a n o v er lr u s t C om
p any: Earl H. Lundin, Jr., assistant

secretary.
B ank E quipm ent and
O ther Firm s
A m e rica n B en efit In su ra n ce C o m
pany: James White, president.

Bud Riederer.
D a w so n H a il In surance: James R.
Dawson, president; Robert C. Dawson,
and Lyle C. Askerooth, vice presi
dents.
D ieb old , Inc.: Richard J. Cherry,
sales representative, and James W. Pe
terson, sales engineer.
N o rth C en tral C o m p a n ies: Rog Pulkrabek and Bill Stohr.
N Y T C O S erv ices, Inc.: Leo H .
Hermes, Jr., vice president and John
G. Hogan.
Piper, Jaffray & H op w ood: Mur
ray Williamson.
C entral States:

T h e P ro tectiv e G rou p : C. D . Mor
ris, vice president; Bill McMullen and
Cal Opsahl.

WELCOME TO FARGO AND THE
86TH NORTH DAKOTA
BANKERS CONVENTION
MAY 12, 13 & 14

President

We Can Handle Your Correspondent Needs
f

N A T I O N A L B A N K A N D T R U S T C O M P A N Y OF FARGO
M em ber F D IC
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Federal Reserve Bank of St. Louis

M a y , 1971

70
also announced that J. William Smith
was promoted from assistant vice pres V
ident to vice president of the bank.

Montana

NEWS
E. P. FR IZ ELLE

Presiden t

Butte

R. C. W A LLA CE

Secretory

Heleno

G o rd o n F in a n cia l
S u p e rv iso r

Plan M on tan a Group M eetings
rT1 he schedule for the Montana
* Bankers Association group meet
ings has been announced by E. P, Frizelle, president of the MBA and pres
ident of the First Metals Bank & Trust
Company, Butte. The seven meetings
will start at Great Falls on May 13,
following this schedule:
G roup 5 —Great Falls, May 13.
G roup 6 — Butte, May 14.
G roup 7—Billings, May 15.
G roup 2 —Baker, May 17.
G roup 4 — Glasgow, May 18.
G roup 1 — Browning, May 20.
G roup 3—Hamilton.
Appearing with Mr. Frizelle on the
various programs will be R. C. (Bob)
Wallace, Helena, secretary-treasurer of
the association.
Louis Penwell, general counsel for
Big Sky of Montana, Inc., will speak

at the first three group meetings. Big
Sky is the newly-organized firm headed
by TV personality Chet Huntley. This
special ranch vacation spot is being de
veloped near Bozeman.
Other guest speakers who will ap
pear at all seven meetings are Bill
Clark, executive manager, Develop
ment Credit Corporation, Helena, and
A1 Olsen, loan guaranty officer for the
Veterans Administration, Helena.

B a n co rp R ecord s G ains
S w een ey N a m ed C hairm an
Charles E. Sweeney was recently
named chairman of the board of direc
tors of the Big Horn County State
Bank, Hardin. He replaces J. J. Ping,
who had been chairman of the board
since 1945. Mr. Ping retained his posi
tion as president of the bank. It was

h irst o f H elena G ran d O pen in g

FIRST NATIONAL SANK & Trust Company of Helena, Montana opened its new Motor
Bank facility recently with a well planned open house complete with ribbon cutting
ceremony.
A co-ordinated advertising program featured the new facility together with the
“ Treasure Chest” approach fo r free prizes, including the grand prize, a Va. size “ Tin
Lizzie” Model T Ford.
Results on opening day were overwhelming. Over 4,000 people showed up to
participate— 1,000 more than the most optim istic guesses.
The new motor bank, a hexagonal building with a large commercial bay plus
three V. A. T. units is situated across the street from the main banking building and
is connected to it by a tunnel under the street and the covered parking lot. Designed
by Morrison-Maierle and Associates, the new facility is one of the finest m otor banks
in Montana. Customer utilization has doubled over the form er m otor bank and trans
action counts have averaged 71 cars an hour through the four lanes.
N orthw estern Banker, M a y ,

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Federal Reserve Bank of St. Louis

1971

Robert R. Gordon has been ap
pointed financial agency supervisor, re
sponsible for the sale of North Cen
tral’s creditor insurance products in
Montana and the western states. Mr.
Gordon’s appointment was announced
by F. William Stohr, vice president in
charge of creditor insurance.
Mr. Gordon has considerable insur
ance experience in the western regions.
For four years, he served as district
manager for Montana, Wyoming and
Idaho for the Occidental Life Insur
ance Company of California. Previous
ly, he worked at the Trans western Life
Insurance Company of Billings, Mon
tana as assistant vice president.
Bancorporation of Montana re
corded income before security gains of
$466,457.00, or $1.65 per share for
the year ended December 31, 1970,
compared to $361,711.00 or $1.28 per
share for the same period during 1969,
reported Charles W. Rubie, president
of Bancorporation. The 1969 figures
were restated, Mr. Rubie explained to
conform to the new accounting rules
adopted by the accounting profession
and bank supervisory authorities in
1969.
Net income after security gains rose
19.5% to $470,891.00, or $1.66 per
share, as compared with $394,156.00,
or $1.39 per share recorded for the
same period in 1969.
Consolidated deposits of the eleven
affiliated banks increased 8.2% to
$70,673,594.00 form $65,329,854.00.
For the same period, loans increased
to $40,989,116.00 from $38,611,712.00.
Bancorporation of Montana is the
only registered multi-bank holding
company domiciled in Montana and
operates eleven banks in ten com
munities. Its offices are in the Central
Bank Building located in Great Falls.

J o in s H elena B ank
John A. Layne III has joined the
staff of First National Bank and Trust
Company of Helena in the trust de
partment, according to Robert F.
Burke, president of the bank.
Mr. Layne is being transferred from
First National Bank in Great Falls
where he has been affiliated in various
banking duties since 1969.

What if
a sultan
asked you
for husband

You’d need North Central’s joint credit life insurance.
Think of the profit one loan would bring
you. Of course, we pioneered joint life in
this area for other reasons, too. Like the
need, for example. With more families
dependent on wives than ever before,
the second income’s not the only factor.
A widowed father has enough problems
without a loan to pay up. Which is
all good reason to keep both
borrowers protected.

Call our RedCoat desk for a rate on your
next sultan. (Or call today and we’ll
send a RedCoat to see you.) Toll free
at (800)792-1030 in Minnesota
(800)328-1612 in North and
South Dakota, Nebraska, Iowa
and Wisconsin. (612)227-8001
collect elsewhere.

North Central Life
275 E. Fourth St., St. Paul, Minn. 55101
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Federal Reserve Bank of St. Louis

One
coat
covets.

B anker, M a y ,

1971

Wyoming News
FELIX BUCHENROTH. JR,
Jackson
President
Wyoming Bankers Assn.

ing of the Stockmans National Bank
of Lusk recently.
The front and entire interior will be
remodeled in modern design and to im
prove service generally. Added serv
ices will include a driveup window
and another special window for addi
tional hour service.

D in n e e n E lected D irecto r
N am ed V ice P r e sid e n t
Jack Crews has been named vice
president in charge of the agricultural
loan department of Cheyenne National
Bank, Cheyenne, according to an an
nouncement by A. H. Trautwein, pres
ident.

M argie S an d ers P r o m o te d
Margie Sanders has been named an
assistant cashier at Stockmans Na
tional Bank, according to an an
nouncement by Andrew McMaster,
president.
The new bank officer, whose ap
pointment became effective recently
will be completing four years of serv
ice to Stockmans National in June. Her
duties have covered work in the teller
and contract loan departments and as
general ledger bookkeeper.

ecutive officer. Mr. Muirhead has
agreed to remain as a director.
The Muirhead family has been the
principal owners of the bank since
1910 when the late George C. Muir
head became associated with it. Short
ly before his death, his son, George T.
Muirhead, became president.
Mr. Muirhead said his immediate
plans, beyond his continued work with
the bank, include continued residence
in Worland and devotion of greater at
tention to his ranching operations.

S to ck m a n s B eg in s
R e m o d e lin g
Work was started on the remodel-

N o rthw estern Banker, M a y,

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Federal Reserve Bank of St. Louis

1 97 1

O b serve 6 5 th A nn iversary
The Wyoming Bank and Trust
Company, Buffalo, is currently observ
ing its 65th anniversary. The bank was
founded in 1906 with an original capi
tal of $25,000. Now its capital is
$350,000. With assets of $4.5 million,
the bank now has 10 full time employ
ees to serve its customers with all
banking services. Robert L. Ferril is
vice president, director and managing
officer of the bank.

D ubois B an ker-Jou rn alist
residents are proud of the
D ubois
fact they have the highest paid

newsboy in Wyoming— George M.
Blevins, vice-president and cashier of
The following members of the Wyom the Dubois National Bank.
ing group of the National Association
Five days each week during the win
of Bank Women, Inc. recently at ter and six days each week during the
tended the Rocky Mountain-Western summer, Mr. Blevins gathers up the
Regional Conference in San Diego, mimeographed “Dubois Doin’s” and
California: Mrs. Virginia Blair, as hand carries them to businesses
sistant vice-president and Mrs. Win- throughout the community.
onia Flower— executive secretary of
He has been doing this since 1964.
Jackson State Bank, Jackson; Mrs. Ol“It takes me about an hour,” he
lie Kane, director of Stockmen’s Bank, says.
Gillette and Mrs. Pat Rothweiler,
“Some people said it wouldn’t last
cashier of Western National Bank, 30 days, but I felt the community
Casper.
needed a service like this,” he ex
plained. “And the directors are behind
it 100 per cent.
M uirhead A n n o u n c e s Sale
The “ Dubois Doin’s” is a single
George T. Muirhead, president of sheet of paper mimeographed daily be
the Stockgrowers State Bank of Wor- ginning at 7 a.m. It carries one-sen
land, has announced the sale of the tence news items, advertisements and
bank to a Wyoming based corpora upcoming events in the little com
tion, due to poor health.
munity.
Key members of the corporation are
A sample: “Today— St. Thomas
Gene Bannister, Gillette; Dennis Bon Guild will meet at the Community
ner, Sheridan; James Prell, Hay House.”
Springs, Nebraska; Jim Schumacher,
Another example: “FOUND— Two
Rapid City, and S. William Davies, GM keys and a small black case—
Rapid City.
found in front of the Merc. Claim at
Mr. Prell will be the new chief ex- the bank.”

A ttend R egion al C o n feren ce

William J. Dinneen, Jr., president
of Dinneen Lincoln-Mercury Sales, has
been elected a director of the Chey
enne National Bank according to a re
cent announcement by Carlin Smith,
board chairman.

Editor is George’s wife, Evelyn. As
sisting are Dee Odun and Jennell Nick
el.
Cost to the bank is about $1,000 a
year for 150 copies for five days each
week during the winter and 400 copies
for six days during the summer.
“Of course our work just goes along
with the job," Mr. Blevins reported.
The little newspaper is free to any
one, and individuals who want it
mailed to their homes can pay postage
for that service.
Mr. Blevins is proud of the reputa
tion it has acquired in the five years it
has been in existence.
He said he started the little paper
because of a need in the community
for services a newspaper provides.
The community information sheet
also contains humorous sayings, such
as “The man who figures he can’t af
ford to have children is usually a fath
er,” and “Frustration is a bald-headed
hippie.”
Mr. Blevins said, however, that he
did not believe the community of Du
bois was large enough to support a reg
ular newspaper, even a small weekly.
“We need the service but a news
paper wouldn’t last, I don’t believe, in
a community this size.”

That’s one of the advantages of a
correspondent relationship with
The First National Bank of Denver.

transactions. Quickly. If you and your
community have need for underwriting
services, let the First's experienced and
market-active experts assist. Let’s share a
community of interests. The First
is able to offer the finest specialized
correspondent banking services because
The First is

Get to know our bond experts. Not only
are they Bond Brokers, but they handle The
First of Denver's portfolio. So they are
in an excellent position to offer you the best
guidance in terms of portfolio investment.
And because you’re dealing with a Bank,
you can receive immediate settlement for
purchase and sale of bonds through internal

('^ÿ v m p m .d ed

w h e re th e ab a n k e rs
a re /
T

h e F

ir s t N

tio

a n k o

e n

v e r

303-893-2211 • T.A. Box 5808 • Denver, Colorado 80217

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Federal Reserve Bank of St. Louis

Banker, M a y ,

1971

C o lo r a d o
N e w s
C. GALE SELLENS
W heat Ridge
President
Colorado Bankers Assn.

C olorado Hankers W ill Meet
M ay 27-29 f o r 70th Convention
embers of the Colorado Bankers tors, which will be the CBA governing
Association will observe an im body.
portant milestone in the history of their Bankers and their wives attending
association when they meet at The the Friday evening banquet will be en
Broadmoor Hotel in Colorado Springs, tertained by “The Kids Next Door,”
May 27-29. It will be the CBA’s 70th a top-star young group of TV and
annual convention and approximately night club performers who put the
900 persons are expected to attend.
“zing” back in any audience, young or
Presiding at the convention platform old.
will be C. Gale Sellens, president of
The ladies will have an unusual
the CBA and president of the Lakeside guest speaker for their Friday noon
National Bank, Wheat Ridge. Other luncheon in the person of Major Ameofficers serving with him this past year lio of the Air Force Academy. He is
have been Don F. Delano, president a talented sculptor who has gained re
of the Burns National Bank, Durango, nown for his biblical type sculptures.
scheduled to move up to the presi
The program outline follows:
dency from his present position as first
Thursday, May 27
vice president, and Max G. Brooks,
chairman of Central Bank & Trust A.M.
Company, Denver, who will advance
9:00 Registration— Broadmoor Ho
tel.
from second vice president to first vice
president at the annual election.
Golf Tourney. Both the Broad
moor
Champion
18-hole
James C. Scarboro is executive man
course and the Women’s 18ager-treasurer, and his son, Gerald L.
hole course will be available.
Scarboro, is CBA secretary.
Registration at The Broadmoor will P.M.
6:30 Cocktail Party and Buffet Din
start at 9:00 a.m. on Thursday, May
ner— Poolside
and
terrace
27, and the convention golf tourney
lounge. Dancing—Ballroom.
will start at that time on the famous
Broadmoor Championship Course and
continue throughout the day. The
Friday, M ay 2 8
cocktail party and buffet dinner will A.M.
start at 6:30 p.m. on the terrace.
7:30 Breakfast— Main dining room.
The first business session will be
Hosted by Central Bank &
held as usual on Friday morning, with
Trust Company, Denver,
to
the afternoon free. The second busi
9:30
ness session will take place Saturday
9:45 Call to Order—C. Gale Sellens,
morning, concluding with the election.
On the agenda for the business meet
president, Colorado Bankers
Association; president, Lake
ing Friday is the presentation of the
new constitution and by-laws that have
side National Bank, Wheat
Ridge.
been approved by the special commit
tee appointed by President Sellens to
President’s Address — Mr.
Sellens.
review these documents. If the dele
Review of newly-proposed con
gates approve the presentation Friday
stitution and by-laws.
morning, then they will meet by
Address— Fred O. Dickinson,
groups in the afternoon to elect a
Jr., Comptroller, State of
member from each of the 10 groups
Florida.
to the newly-proposed board of direc

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Banker, M a y,

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Federal Reserve Bank of St. Louis

1971

Meeting of Colorado members
of the American Bankers As
sociation.
Presiding—T h o m a s Moon,
president, First National Bank,
Colorado Springs.
Presentation of 50-Year Club.
Recognition to be given new
members of the 50-Year Club
and other distinguished guests.
P.M.
12:45 Ladies’ Luncheon— Ballroom.
Entertainment— Major Amelio, Air Force Academy, noted
sculptor.
6:30 Social
H our— International
Center.
8:00 Banquet— International Center.
Entertainment— “The
Kids
Next Door.”
Saturday, M a y 2 9

A.M.
10:00 Call to Order— President Sel
lens.
Address— Roger B. Smith, vice
president-finance, General Mo
tors, Detroit, Mich.
Address— The
Hon.
John
Love, Governor of Colorado.
Report of resolutions commit
tee.
Report of nominating commit
tee.
Election of officers.— END

N a m e ch a n g e
The stockholders of Colorado CNB
Bankshares, Inc. at their annual meet
ing voted approval of a change in name
to Colorado National Bankshares, Inc.
This new name more directly identifies
the holding company with its major
bank, Colorado National Bank of Den
ver. Other affiliates of the holding
company are Lakewood Colorado Na
tional Bank, Northeast Colorado Na
tional Bank, South Colorado National
Bank, the Bank of Glenwood, and the
Garrett Bromfield Mortgage Company.
The Arapahoe Colorado National
Bank, located at University Boulevard
and Arapahoe Road will open early
this summer.

C harter filed
An application for a state bank
charter for the proposed Bank of Boul
der has been filed. Suggested capital
is $450,000.
Applicants are A. F. Tisone, Boul
der dairyman; Dr. Richard F. Geesaman; H. Lee Sturgeon, president of the
Security Bank of Boulder; Charles F.
Miller, Rocky Ford industrial banker,
and Richard F. Eason, Denver attor
ney.

Central B a n k

W a n ts
Y ou
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Don E ch te rm e y e r

J o h n E d m is to n

Larry M atthes

B ill G ossett

Let’s get together for a visit at the convention. We always welcome
the opportunity to see all our long time friends and meet new ones.
Central Bank’s Correspondent team is ready, willing and able to help
you in any area . . . serving you is our business.
Looking forward to visiting with you.

BankAmericard

ML
M EM BER : FE DER AL RESERVE SYSTEM

AND TRUST CO,

CENTRAL PARK • 15TH AND ARAPAHOE STS.
DENVER, COLORADO 80217 PHONE 303/825-3181

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Federal Reserve Bank of St. Louis

Banker, M a y,

1971

Colorado News

You W ill See Them a t the
C olorado B ankers C onvention
he following metropolitan bankers Foncannon, senior vice president, and
and service and equipment dealers John T. Fowler, vice president.
have indicated that they will be attend
L in c o ln
ing the Colorado Bankers Associa
F
irst
N
a
tio
n
a
l B an k & T rust C o m
tion’s 70th annual convention in Colo
pany:
Dale
Shoemaker,
vice president.
rado Springs, May 27-29.

C h icago
A m erica n N a tio n a l B a n k & T rust
C om p any: William B . Aldrich, second

vice president.
C on tin en tal Illinois N a tio n a l B a n k
& T rust C om pany: James P. Johnson

and Samuel D. Addoms, vice presi
dents.
F irst N a tio n a l B an k o f C hicago: R.
Garth Dunn, Jr., vice president; James
A. Edwards, assistant vice president,
and Gilbert Y. Liss, representative.
H arris T rust an d S a v in g s B an k: Ed
ward K. Banker, vice president.
N orth ern T rust C om p an y: Michael
Tighe, Jr., second vice president.
D en v er
A m e rica n N a tio n a l B a n k of D en ver:

W. Richard Scarlett, vice president,
Roger R. Reiling and Ray Holubec,
assistant vice presidents.
C entral B a n k

& T rust C om p an y:

Max Brooks, chairman; Don Hoffman,
president; R. J. Nelson, executive vice
president; Marvin Owens, senior vice
president; Bill Gossett and Don Echtermeyer, vice presidents; John Edmiston, assistant vice president, and Art
Bridgewater, retired vice president.
F irst N a tio n a l B a n k o f D en v er: Eu
gene H. Adams, president; Carroll L.
Stubbs, senior vice president; Theo
dore D. Brown, executive vice presi
dent; J. Rodney Uhrich, Royce B.
Clark, and Ralph R. Adams, vice
presidents.
U n ite d B a n k o f D en ver: Kent Olin,
Paul Christensen, and Ron Robinson,
vice presidents; Dave Calahan, com
mercial banking officer, and Steve
Bosley.
K a n sa s C ity
C ity N a tio n a l B ank & T rust C o m
pany: John J. Kramer, executive vice

president; Roy A. Thompson, senior
vice president, and Jack E. Beets, vice
president.
C om m erce B ank: Charles W. Battey, president; Fred N. Coulson, Jr.,
and Tom C. Cannon, vice presidents,
and Ben Caldwell.
F irst N a tio n a l Bank: Eugene B.
N orthw estern B a n k e r , M a y ,

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Federal Reserve Bank of St. Louis

1971

L o s A n g e le s
P acific B ank:

C h arles

S ecurity
Paul
Brandt, assistant vice president.

N e w Y ork
C h a se M a n h attan B ank:

R. L. Denner, vice president, and W. J. Connellan, second vice president.
C h em ica l B an k: E. Bruce Brandi,
vice president.
F ir st N a tio n a l C ity B ank: A. W.
Peters, vice president, and Gordon W.
Baird and Thomas F. Richardson, as
sistant vice presidents.
M anufacturers H an over T rust C o m
pany: William C. Langley, Jr., vice

president, and E. Danson Perin, assist
ant secretary.
O m aha
F ir st N a tio n a l B an k :

Don Ostrand,

vice president.
O m a h a N a tio n a l B ank: Fred Doug
las and Dave Johnson, vice presidents;
Tom Matthaidess, assistant corre
spondent banking officer, and Andy
Harris, agricultural loan officer.

F irst

P h o e n ix
N a tio n a l B an k

St. L o u is
N a tio n a l B an k:

Leonard J.

Schrewe, vice president.
San F ra n cisco
B a n k o f A m erica : Byron

G. Fram-

sted, vice president.
T u lsa
F irst N a tio n a l B a n k & T ru st C o m
pany: Dick Wagner, senior vice pres

ident.
B a n k E q u ip m en t an d O th er F irm s
C en tral S tates o f O m ah a: Robert

Hart.
K irch n er,

M oore

and

C om p an y:

Ron Moore, Mike Fleming, Tobe An
derson, and Paul Miller.
L a w r en ce W areh o u se C om p an y: J.

H. Undlin, vice president.

W alters

C o m p an y:

Mason Henry, president.
Y a le B an k Service: Raymond (Bob)
Myre, regional manager, and Earl
Yates, representative.

N ew C o rresp o n d en t O fficer
The C e n t r a l
B a n k & Trust
Company, Denv e r, h a s an
nounced the app o i n t m e n t of
Larry G. Matthes
to the bank’s cor
respondent bank
ing division.
Mr.
Matthes,
L. G. MATTHES
an assistant cash
ier, joined the
Central in 1966. After his trainee
period he joined the commercial credit
department of the bank. He holds a
bachelor degree in liberal arts, major
ing in economics.
Matthes’ addition to the correspond
ent division brings the staff to four. He
joins DonEchtermeyer, Bill Gosset
and John Edmiston.

A rizona:

Willis W. Henze, vice president.
V a lle y N a tio n a l B ank: Earl Bimson,
president, and Budd Peabody and Max
Morris, vice presidents.
F ir st

L ife In v esto rs o f A m erica: Roy
Gofvert, regional manager, credit in
surance.
NYTCO
S erv ices, In c.: Duncan
Ferguson, district manager.
P ro tectiv e G rou p : C. D. Norris, vice
president, and Bill McMullen and Cal
Opsahl.
S ca rb orou gh & C om p a n y : Joseph B.
Schieffelin, Rocky Mountain repre
sentative.

C entral B an k P r o m o tio n s
Max G. Brooks, board chairman of
the Central Bank and Trust Company
Denver, recently announced that Wil
liam W. Clark and William H. Echelmeyer were promoted to vice presi
dent. Gary Brooks was advanced to
assistant to the chairman of the board
and Charles Inagaki was elected assist
ant cashier.

C harles H oltz N am ed
S en io r V ice P resid en t
Charles S. Holtz was advanced to
senior vice president and comptroller
of the First National Bank, Denver.
He has been vice president in charge
of accounting since 1965. Robert J.
Hollines, Jr., and Charles R. Miller
were promoted to assistant vice presi
dents from data processing officers.
New officers include: David W. Witte,
James D. Alexander, J. Stan Cillessen,
and Larry H. Knudsen.

Any correspondent
bank is only as good
as w hat it w ill do

C. J. O Connor

j. Walter Peniston

George C. Dudley

Eugene B. Foncannon

John T Fowler

W. Darrell Meyer

John E. O’Connor

Paul A. Peterson

Herman M. Dresker

W illiam 0 Weis

First National Bank
of Kansas City
10th & Baltimore, Kansas City, Mo.
Member Federal Deposit Insurance Corporation
N o rthw estern

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Federal Reserve Bank of St. Louis

Banker, M a y,

1971

Colorado N e w s

J o in s C ou n sel F irm

ly conducted a Personal Banking Conference with major speakers at the con
ference including Herbert I. Lee, vice
president; Richard A. Kirk, senior vice
president, and Donald L. Neil, person
al Banking officer. Topics for the con
ference included sales training, opera
tions, methods, procedures and bank
center planning.

A1 Krutsch, who has resigned as an
assistant vice president of the First Na
tional, Denver, is the new manager for
loan production for First National Ad
visers, Inc., the investment counsel for
First of Denver Mortgage Investors.

G oes to Ft. C ollin s B ank
Harry S. Fegley has been named
personnel administrator for the First
National Bank in Fort Collins. He was
formerly affiliated with the United Cal
ifornia Bank and Western Bancorporation, San Francisco.

NORTH DAKOTA NEWS . . .

A p p ly fo r A c q u isitio n
Affiliated Bankshares of Colorado,
Inc., registered bank holding company
owning control of 13 banks in Weld,
Larimer, Boulder and El Paso coun
ties, has announced plans to apply to
the Federal Reserve Board for permis
sion to acquire the University Nation
al Bank of Fort Collins.

J o in s B an k sh ares
The Bank of Glenwood is now for
mally affiliated with Colorado Nation
al Bankshares, Inc. The acquisition
was completed through an exchange
of stock with the shareholders of the
Bank of Glenwood, Glenwood Springs,
Colorado. The Bank of Glenwood now
becomes a wholly owned subsidiary of
CNB, Inc. The exchange of stock was
jointly announced by Melvin J. Rob
erts, president of CNB, Inc., and Wil
liam T. Sisson, president of the Bank
of Glenwood.

Sh urtz N am ed to B oard
Leslie J. Shurtz, assistant vice pres
ident of Van Schaack and Company,
was recently elected to the board of di
rectors of the First National Bank of
Northglen.

FD IC A p p ro v a l
The Federal Deposit Insurance Cor
poration has recently approved insur
ance for the Bank of Woodmoor with
total capital accounts at $93,750.

“ M on ey F r e e ” W in n er
Richard C. Meckley, president of
The First National Bank of Bear Val
ley, recently presented “A Money
Tree” to contest winner Mrs. Clara L.
O’Dell, of Englewood. The Money
Tree contest was held in conjunction
with the grand opening of the bank’s
N orthw estern Banker, M a y ,

1971

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Federal Reserve Bank of St. Louis

MONEY TREE— Richard C. Meckley, pres
ident, First National Bank of Bear Valley,
Denver, presents Mrs. Clara L. O'Dell of
Englewood with the Money Tree. Mrs.
O'Dell missed guessing the total amount
of money on the tree by only 34 cents
and won the contest.

expanded and remodeled facility in
Bear Valley Shopping Center. Mrs. O’
Dell guessed that the Money Treee was
decorated with $312.37 in cash and
coin. The actual amount on the tree
was $312.71.
The new bank addition increased the
functional space from 7,016 square
feet to 12,896 square feet on both lev
els of the two story building. Three ad
ditional drive-in windows have been
installed, bringing the total to six.

G eorgetow n O p en in g
The new Bank of Georgetown
opened recently in the mountain town’s
historic Silver Queen Building, accord
ing to Clay J. Hutchinson Jr., president.

A n n o u n ce B a n k P u rch a se
A group of Rifle businessmen has
purchased the First National Bank
from Thomas Reed, former Denver
banker.
Heading the group of purchasers is
Allen R. Koeneke, formerly with the
Farmers State Bank in Brush, who
moved to Rifle two years ago to as
sume the presidency of the Rifle bank.
Associated in the purchase are Dr.
Dallas Dnaus, A. A. Swan, Les Estes
and Herb Jolley Jr., all of Rifle, and
C. W. Brennan of Piceance Creek,
Colo.

P e r so n a l B a n k in g
C o n fe r en ce
The United Bank of Denver recent

(Continued from page 68)
SB 2334—Amends section 13-0401 of the Bank Installment Loan law
to make the maximum loan cover
$10,000 for a term of 10 years and 32
days. Rate of $6 per $100 per annum
discount or add-on, with a permissable
minimum charge of $15 in any event.
In addition, Governor Guy vetoed
HB J 299, the Uniform Consumer
Credit Code, not sponsored by bank
ers, but supported by them.
A House proposal (HB 1167) to
charge penalties and require payment
of NSF checks failed in the Senate.

C o n stitu tio n a l C o n v en tio n
The second North Dakota Consti
tutional Convention convened last
month for a three-day preliminary and
organizational meeting prior to the ac
tual Convention on January 3, 1972.
Nine delegates to the Convention
are involved in banking. They are:
Gail Hernett, Ashley, N.D., vice
president, Grant County State Bank,
Carson.
Fred Hoghaug, Ramsey National
Bank, Devils Lake.
Stanley Kwako, Farmers State
Bank, Heaton.
Joseph S. Lamb, Lamb’s Bank of
Michigan City.
Gary Lerberg, Peoples State Bank,
Parshall.
Roland E. Meidinger, Stutsman
County State Bank, Jamestown.
Harry G. Poulson, Casselton State
Bank.
Thomas A. Roney, Foster County
State Bank, Carrington.
Frank Wenstrom, American State
Bank, Williston.

B jörn e T h o r k e lso n
Bjome O. Thorkelson, a former
manager of the land department of the
Bank of North Dakota, Bismarck, died
recently at Del Ray Beach, Florida.
Mr. Thorkelson, who retired in
1957, began his banking career in Fingal. He later helped to organize the
First State Bank of South Heart.

Form experts at The First like Ben Hauenstein and Jud McManiga!
have years of experience in agricultural financing. They understand
farm operations— talk farm talk. And they are ready to participate
in agricultural loans.
They can help you serve customers who are expanding their
livestock and crop operations to increase farm profits. Or, they can
help with term loans for capital investments in machinery, equipment,
and facilities to improve efficiency and increase profits.
The farm specialists in Division F know how to get the money.
Yet helping you help your customers with agricultural loans is
just one of the many ways our correspondent bankers give you
expert service. We also can help you solve problems involving
commercial loans, international banking, cash flow, internal
operations, and many more.
Why not talk to a banker whose only customer is his
correspondent-—you. Make your first call The First

(312) 732-4132.

The First National Bank o f Chicago
C H IC A G O • LONDON • DUBLIN • PARIS • BRUSSELS • FRANKFURT • DÜSSELDORF
GENEVA • MILAN • ATHENS • BEIRUT • MEXICO CITY • PANAMA CITY
K IN G STO N • TO KYO • SINGAPORE • IN LONDON: FIRST C H IC A G O LIMITED
IN NEW YORK: FIRST C H IC A G O INTERNATIONAL BA N KIN G CORPORATION • MEMBER F.D.I.C.

The First
specialists to call
fo r overline help
on agricultura loans.
N o r t h w e s t e r n B a n k e r , M ay,

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Federal Reserve Bank of St. Louis

1971

MISS YOU!
We serve over 250 correspondent banks in 10 states.
If w e’re working foryou now,
w e’re glad you’re in the pack. If not,
give us a call and you’ll be a “how ling” success, too!

N A T IO N A L

BANK
OMAHA
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Federal Reserve Bank of St. Louis

1971

81
will be asked to offer advice. He added
that the youths will elect a spokesman
for meetings of the main bank board.
“We want to get their ideas on what
banks can do to assist young people,”
Mr. Hallas said, noting such things
might range from student loans to fi
nancial and business advice.

N e b ra s k a

NEWS
H. L. M cKIBBIN
W . H. O STERBERG

Presiden t
E xe c. M gr.

G ering
Om aho

R u sh v ille A p p o in te e
Fred Evans of Hay Springs has been
appointed an assistant cashier at the
Stockmen’s National Bank, Rushville.

John M. Shonsey, chairman of the
West Omaha National Bank, has been
named president of the Oakland Feed
ing Corporation, Oakland, Iowa.

C leared o f N e g lig e n c e

O pen H o u se fo r
O ld-N ew B ank

A ssig n m en ts at Sou th S io u x
Assignments have been announced
for two men who were elected vice
presidents at the Nebraska State Bank,
v South Sioux City, as announced earlier
in the N orthwestern Banker.
H. J. Arthur, who has been with the
bank for two years, will be in charge
* of installment loans.
John Paulsen, who has been at the
bank for four years, will have charge
of agricultural loans.

D irecto r at N orth B en d
Stockholders of the Platte Valley
Bank, North Bend, have elected two
new members to the board of directors.
They are Bruce Hall and Edward
Walla.

S ch u y ler B ank E x p a n sio n
Ronald J. Krejci, executive vice
president and cashier of the Schuyler
State Bank, Schuyler, has announced
that the bank recently acquired the
property adjacent to the bank building
r on the east and is remodeling it and in
corporating it into the main bank
building as an installment loan center,
expanded work room, and drive-in fa
cility.

F a irb u ry D rive-In O pens
Formal opening of the new walkin, drive-in facility of the First Nation
al Bank, Fairbury, was held recently,
with Robert Burkley, chairman, pre
siding.
The new facility is located on a pre
viously-constructed parking lot at Sixth
and F Streets. Dr. Charles B. Schwab,
Fairbury mayor, and Mike Danaher,
Chamber of Commerce president,
acted as ribbon cutters.
The American Legion-VFW color
guard handled the flag raising. Mr.
Burkley announced that the U. S. flag
and the Nebraska flag will fly continu
ously, with spotlights on them at night.
Refreshments were served in the

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Federal Reserve Bank of St. Louis

H eads Iow a F e e d in g F irm

new facility throughout the day, and
the bank awarded four $25 U. S. Sav
ings Bonds to those who had most
nearly predicted the new facility open
ing date.

A district court jury recently de
cided that a cashier and director of
the non-defunct Nebraska State Bank
of Valentine had not acted negligently
in failing to discover fraud at the bank.
The Nebraska Department of Bank
ing, receiver for the bank, had brought
the civil action against Frank Colburn
of Valentine.
The bank’s president, Richard L.
Davenport of Valentine, was con
victed of embezzling more than $3
million in bank funds. He was paroled
from the State Penal Complex recently
after serving about six years.
The bank closed in October of 1964
after discovery of the fraud. At that
time, the Nebraska Department of
Banking assumed control as receiver.
It had sought a maximum of $3 mil
lion in damages in the lawsuit against
Mr. Colburn.

H as Y ou th A dvisory B oard
The Mid City Bank now has a youth
advisory board, consisting of six high
school seniors and five college stu
dents.
Joseph Hallas, executive vice presi
dent of the bank, said it is the only
youth board at a bank in this area.
A young housewife and a young
businessman also will be selected for
the board, Mr. Hallas said. The board
held its first meeting recently.
Mr. Hallas said the young people
who were asked to be on the board had
been recommended by various Omaha
businessmen. Most of the youths are
or have been members of Junior
Achievement of Omaha, he said, add
ing that those on the board will serve
for one year and may be re-elected un
til they reach age 26.
Mr. Hallas said youths will be
taught something about banking, then

The Waterloo State Bank, Waterloo,
recently held an open house after hav
ing accomplished a charter transfer
from Leshara State Bank, Leshara.
The bank’s new decor is of historical
interest as the bank was restored in
the fashion of an 1800’s bank. The
interior includes old fashioned teller
cages, a roll top desk, spittoons, a
crank-type wall telephone.
A parade was held in Waterloo
commemorating the opening ceremo
nies. A full-scale bank robbery was at
tempted by a gang of outlaws but were
apprehended by Nebraska’s Governor
J. J. Exon, who was on hand to wel
come Nebraska’s “newest-oldest” bank.

C elebrate A d d itio n
About 175 people attended the open
house held at the Farmers State Bank,
Avoca, recently. Many beautiful flow
ers and plants were received to make
the occasion a tremendous success. The
addition to the bank was the reason
for the celebration and the public was
invited. Quarters of beef and 75 hams
were given away as prizes.
Guests registered from Minneapolis,
Minn., North Platte, Lincoln, Omaha,
Plattsmouth, Stromsburg, Elmwood,
Nehawka, Nebraska City, Syracuse,
Unadilla and Avoca.

N E B R A SK A
C O N V EN T IO N
The Nebraska Bankers Conven
tion was underway in Omaha as
this issue was being mailed. A de
tailed report with pictures by the
N orthwestern Banker staff
will appear in the June issue.
Northw estern

B anker, M a y,

J971

82
expected to be completed in about 10
months, said P erry S. F ra n cis, bank
president.
The elevated addition for executive
and bookkeeping offices will be built
over four new drive-in facilities, Mr.
Francis said.
*
R o b ert E . J o h n
son , has been pro

vice-president
H and head of the investment
depart

and chief executive officer M orris F .
the election of Joh n
ment at the United States National
new director of the
Bank has retired, bank and the appointment of former
bank p re s id e n t director V . J . Skutt to the bank’s ad
Edw ard W . L y
visory council. Mr. Skutt requested re
m an announced.
tirement from the active board of di
M r. Pierpont rectors because of his relationship as
joined U. S. Na chairman of the Mutual of Omaha
tional in 1933 Fund Management Company.
after g rad u a tin g
Mr. Minton is president of Mutual
from Dartmouth of Omaha Insurance Company, hold
College in Han ing this position since December 1970.
over, New Hamp Graduating from Creighton University,
H. B. PIERPONT
shire.
he joined Mutual of Omaha in 1950.
Mr. Skutt, who has been a bank di
Born in Omaha
in 1910, he attended Central High rector since 1954, is chairman of the
School and Deerfield Academy, Deer board and chief executive officer of
field, Massachusetts. He also attended Mutual of Omaha and United Benefit
the Rutgers University Graduate School Life Insurance Company.
of Banking.
* * *
Mr. Pierpont worked in several de
partments of the bank before being
Rezoning to permit construction of
named personnel officer in May, 1941. a $425,000 addition to the Southwest
In January, 1945, he was elected as Bank of Omaha, 8800 West Center
sistant trust officer. He became trust Road, was approved by the City Coun
officer in 1952, and vice president in cil.
1962.
The zoning change will be from first
* * *
parking and third residential to first
At the conclusion of the April meet commercial and first parking.
ing of The Omaha National Bank’s
Construction of the 9,500-squareboard of directors’ meeting, chairman foot addition will begin in May and is
E N R Y B. P ierpont,

M iller announced
D . M in to n as a

CORPORATE RONDS
A

CHILES, HEIDER & CO.
INVESTMENT

STOCKS

AND

BONDS

1300 W OODM EN TOWER
OMAHA, NEBRASKA 68102 ■ (402) 346-6677
Other Offices Located in

Lexington, Nebraska
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Federal Reserve Bank of St. Louis

J97Ì

•

Vermillion, South Dakota

moted from sen
ior vice president
of the bank to ex
ecutive vice presi
dent.
Also announced
by Mr. Miller al
the board meeting
was the appoint
ment of D o m in ic
C. H a n n ig a n tc
assistant control officer.
Mr. Hannigan joined The Omaha
National Bank’s Master Charge de
partment in April of 1969. He is pres
ently heading up the fraud and security
areas of Master Charge at the Omaha
National.
* * *
September has been set as the target
month to file an application for a state
charter to operate a black-owned bank
in Omaha, Wesley House officials said
recently.
Attorney W ilb u r L . P h illip s head of
Wesley House’s Economic Develop
ment Department, said that an as yet
unnamed bank board of directors will
work to file an application with the Ne
braska Department of Banking in Lin
coln by late September.
The bank, which would be located
in North Omaha and draw the majority
of its investors and individual deposi
tors from Negroes, would have a capi
talization of $500,000, Mr. Phillips
said during a meeting called by Wesley
House officials to discuss the proposed
bank.
More than 100 persons, attended
the meeting and heard several speakers
support the idea of a black-owned
bank.
Following the meeting, many of
those present signed up for one of
three committees Wesley House is es
tablishing to work out details for the
bank.
They are the site-charter committee,
the finance committee and the promo
tion committee which would mainly
O M A H A NEW S . . .

(Turn to page 90 please)

Call Don Thompson in onr
Installment Loan Department
...fo r help in making your installm ent loan
d e p a rtm e n t m eet to d a y ’s cu sto m er req u ire
m ents ... and in stream lining it fo r more p ro fit
able operatio n. You can reach h im .. .or any of
th e o th e r m em bers o f th e full service c o rre
s p o n d e n t b a n k te a m p ic tu re d b e lo w ...a t
(4 0 2 ) 7 3 4 -1 2 3 4 . Y o u ’ll g e t know ledgeable,
exp e rien ce d s e rv ic e ...p ro n to .

O Northwestern
Ml National
Bank
W

Omaha, Nebraska

Bill Graves
Vice President

Omaha, Nebraska
402-734-1234
Ed Probasco
Vice President

Dan Rishel
Asst. Vice President

Member F.D.I.Ç.
Northw estern

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Federal Reserve Bank of St. Louis

Banker, M a y ,

1 97 1

Nebraska N ew s

S ellin g In sta llm e n t L oans
(Continued from page 23)

B. Program:
1. Service outlet must be able to give the bank the
needed material.
2. The customer must feel that the new system will
benefit him.
3. Cost factor must be fully understood.
4. Primary work must be carefully completed be
fore attempted conversion.
Ill Indirect Auto Loans
A. Local bank advantage:
1. Personal contact and knowledge of dealer back
ground.
2. Personal knowledge of customer’s background
and closer understanding of problems.
3. Ability to follow possible collection problems
faster.
B. Banker must have knowledge of:
L Competitive rates.
2. Money cost.
3. Caliber of dealer.
4. Caliber of purchaser.
5. Possibility of collection problems. — END

Cross S ellin g
JU LIU S M. P ESCH EL
A ssistant Vice P r e s id e n t
First N ational B a n k & T ru st C o m p a n y
L in c o ln N e b ra sk a

'T ' he aggressive installment loan department will generate
a 8ood volume of business for our banks, create good
will in the community, increase the overall number of cus
tomers for our banks, and contribute a large volume of in
come to the bank at a profit. At all times we must remem
ber the “name of the game” in installment banking is
profit.

J o in s In v estm en t F irm
Donald D. Geis has been appointed
a registered representative in the Lin
coln office of Dain, Kalman & Quail,
Incorporated (DKQ), a Minneapolisbased regional investment banking
firm.
Prior to joining DKQ, he was em
ployed in the Chicago office of duPont

Glore Forgan, Incorporated, for two
and one-half years as a registered rep
resentative.
A graduate of the University of Ne
braska, Mr. Geis received his B.S. de
gree in 1962.

J o in s L oup City B ank
The Sherman County Bank, Loup

City, has announced a new man in the
bank. W. N. (Bob) Robert, who for
the past fourteen years has been em
ployed by the Nebraska State Bank in
Weeping Water, is the new vice presi
dent and will be associated with the
Sherman County Bank in all banking
capacities. William A. Bowness is
president of the bank.

THANK YOU FOR HELPI NG
US TO GROW EACH YEAR!

To accomplish this we need to establish goals for the
type and volume of business we want to acquire, obtain
the best personnel available, and constantly have the best
methods of operating our department to reach our goals, -r
1. One challenge facing installment banking today is the
ability to change. For example: We have changed our
thinking many times about auto financing over the years.
Now, mobile home financing is making a tremendous im
pact in our business.
2. Another challenge is the ability to know and control
our costs.
3. The installment bankers have the best opportunity
ot cross-selling other bank services than any other depart
ment in our banks. We must also include our entire bank
staff in asking for business. It’s amazing how much install
ment loan business can be acquired in this manner.
4. Another factor to consider is our competition— it
keeps us alert, aggressive. All of us have customers in our
banks who obtain financing through sales finance compa
nies, credit unions and finance companies, and these peo
ple should be our installment loan customers.
5. Let’s consider qualifications necessary in our install
ment loan officers to accomplish our goals. We should
have a 100 per cent attitude that we can complete every
loan application we process, an attitude of understanding
our customer, an attitude to remember that our customer
is the most important asset to our bank, to greet our cus
tomer when he is brought to our desk, and getting on a
first name basis with him. The greatest challenge of an in
stallment loan officer is to reject a credit application and
still maintain the good will of the applicant. We need to
show the customer how he can qualify for a loan with us
in the future.
6. We must develop the best reporting procedures to
management which will assist our installment loan depart
ments to reach our goals. Top management of all banks
must be informed if we expect them to support installment
lending.— E N D

United States Check Book Company
P.

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Federal Reserve Bank of St. Louis

1 97 1

BOX

3 6 4 4

OMAHA,

NEBRASKA

68103

Sixth Annual Beef Cattle Conference
A Huge Success

Some o f the over 850 bankers, ranchers, feeders, and farmers who attended.

Despite bad weather conditions, First National’s Sixth
Annual Beef Cattle Conference on March 25 was a
huge success. Over 850 interested people — bankers,
ranchers, feeders, and farmers — saw and heard many
new profitmaking ideas from the specialists leading the
conference.
Dr. Frank Baker presented the key-note address on
“Profit-Centered Beef Improvement for the 1970’s” .
Dr. Robert Long, a leader in pioneering new ideas of
performance testing and carcass evaluation, spoke on
herd improvement and how to produce cattle with
traits that will be most profitable for the cattle man
and packer, and most satisfying for the consumer. Mr.
Bob Ross, a Range Ecologist with the Soil Conserva
tion Service, explored conservation problems as they
apply to past and future cattle men.
It was a pleasure for First National and our Corres
pondent Bank Department to host this event. We were
especially gratified to receive a number of letters from
guests who had attended, many of which expressed
similar thoughts to the letter shown here. And we look
forward to presenting next year’s conference with the
hopes that all of our correspondent bankers will be able
to attend.

f l i t
y j j L L fr

GenoaNational Bant
Genoa,Nebraska 68640

March 26, 1971

Messrs. Don Ostrand, Merv Aegerter,
Herman Jacobs and Ralph Peterson
First National Bank of Omaha
Omaha, Nebraska
68102
Gentlemen:
I wanted to thank you all personally for what was an
excellent program yesterday.
I could listen to Bob
Long for several days without becoming the slightest
bit bored and I am sure learn a great deal. All of
our customers that came down— and there were many that
were sorry they couldn't go because of bad weather—
en.joyed your program thoroughly and we thank you very
much.
This program does a great deal in helping us promote
good will among our better customers and also helps
our business development program in that I invite one
or two of the top operators in our area that don't
bank with us. To chte we have gotten two new accounts
and have several very good prospects, partially because
of your program. Many thanks to you all.
I know it
takes more than a few days hard work to put it together.
Sincerely yours,

—
.
E. L. Burke, III
Executive Vice President

ELB-III/dc

FIRST NATIONAL b a n k
OF

OMAHA
N o rthw estern

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Banker, M a y ,

197 f

N ebraska N ew s

B ank Supervision . . .
(Continued from page 21)
statements and other call report ratio
analysis, regression analysis, analysis
of co-variance and other statistical
tools of the operations research field
to convert bank “examinations” into
“inspections.”
This area in which FD1C has spon
sored research is truly one of the great
potentials of bank supervision, but we
are still very much in the embryonic
state. Further, most of the individual
state banking departments or their

Conference of State Bank Supervisors
lack the sizable financial resources to
fund that type of expensive research.
Such computer statisticians command
substantially more salary than most
state chief examiners and the cost of
computer use can be quite staggering.
Most of the graduate schools of bank
ing have learned this as they proforma
the cost of introducing bank simulation
“games” with computers into their cur
riculum.

Respondability and responsibility describe our corre
spondent banking representatives. Specialists in all types
of bond analysis, ready to assist in either the purchase or
sales of bonds for your bank. With their wide experience,
extensive contacts, trained personnel, they can solve many
of your problems. If you need faster collections, credit
information, or data processing, call 1 (816) 279-2724, ask
Martha to connect you with either Benton, John, or Earl.
If they happen to be out of town servicing a correspondent
bank, Martha or Nita will be happy to track them down.

T h e

F ir s t

N a t io n a l

B a n k

ST. JOSEPH, MISSOURI 64502
FELIX A T F O U R T H
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
N o rthw estern Banker, M a y ,

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Federal Reserve Bank of St. Louis

1971

With local municipalities and state
governments facing increased resist
ance by their constituents to further
tax increases it is difficult to increase v
the funds allocated to banking depart
ments without making comparable in
creases in the other departments of the
states. Yet, there is a ray of hope—
banks have on the whole experienced
fine earnings in recent years. State
banks typically do pay for their exami
nations. It is penny wise and pound
foolish to pay for “apathetic and ineffi
cient” supervision. The bankers can in
dividually and through their state
bankers association let it be known
that they stand behind the position
taken by Bill Culley and their individ
ual state banking supervisors in favor
ing improved and dynamic bank super
vision.
Banks are completely dependent up
on public confidence in their stability.
The increase in the last several years
of bank failures could have been re
duced by more effective supervision,
especially in the estimated 1,300 banks
which have used brokered link accom
modation deposits.
The fact frankly is that the better
banks should recognize that it is good
policy for them to pay higher examina
tion fees so that their weaker sister
banks are restrained from joining the
ranks of broken banks.
Most of us at some time or other
have had knowledge of other banks
having financial difficulties which, if
not corrected, would lead to failure.
The banking system does not gain from
a false sense of complacency because
the examiners have not been able to
detect a serious problem bank in time.
Strong banks in the 1930’s knew of
weak banks— and prided themselves
on their own strength and permitted
those weak banks to fail though they
could have been revived. This was
short-sighted and should not be per
mitted to recur. An improved state su
pervisory force needs bankers’ in
creased financial support, and, inci
dentally, bankers’ efforts to remove the
top positions in supervision from the
political arena.— E n d .

y a l e S e c u r it y e q u ip m e n t
NOW AVAILABLE FROM THE SPECIALISTS
TO YOUR STATE BANKERS ASSOCIATION
FOR BANK EQUIPM ENT SALES/SERVICE
F. E. DAVENPORT
REGIONAL OFFICE
2066 FARNAM ST.
OMAHA, NEB. 68102

nT Y

ALE

B A N K SERVICE DIV.
RYE, N.Y. 10580

Today. The perfect tim e to let
the National Bank of Commerce help you.
Assisting correspondent banks is our specialty.
How? In tra n sit service . . . data processing . . .
bond analysis . . . tru s t counselling . . . commercial
loan accounting . . . collections and in many,
many other ways. Our Correspondent Department
is as quick as today in providing you
complete service.

National
Bank
of Commerce
L in c o ln , N e b r a s k a

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

N orthw estern

Banker, M a y ,

1971

N ebraska

News

N ew sletters H elp B anks . . .
(Continued from page 36)
use of trusts, insurance, checking ac
counts, safe deposit boxes, credit
cards, money management, inflation,
savings programs, and bank credit.
The Farm Picture is edited primarily
for farmers, ranchers and owners and
operators of businesses serving agricul
ture. Sponsoring banks are located in
towns and cities ranging in size from
Roundup, Mont., to Ida Grove, Iowa;
Norwich, N. Y., and Moultrie, Ga., on
up to correspondent banks in Kansas
City, Mo., and Houston, Tex.

B E A N IE

Page one presents the market out
look and price forecasts for livestock,
poultry, milk, eggs, and crops pro
duced or fed by the farmers and ranch
ers. They receive one of four editions
adapted to their needs: Feedbelt,
Ranch-Farm, South-Farm and DairyFarm Picture.
Some banks sponsor both newslet
ters— The Farm Picture for farm and
ranch customers, and The Living Pic
ture for businessmen and city families.
Other banks mail The Living Picture

JO H N

P H IL

Of course, Correspondent Banks get
personal service at the “ Stockyards”
W hy not m a k e c o rre sp o n d en t
b a n k in g e asy for yourself. Let the
F irst Stock Yards B a n k help you.
We h a v e the experience, facilities
and sp e cia liz ed d e p a rtm e n ts
r e a d y to go to work for you. And,
w e c a n do it for you at M issouri’s
No. 1 livestock m a rk e t. We c a n
give a c c u r a te credit inform ation...
give you f in a n c in g a s s i s t a n c e ...
efficient collection a n d r e m itta n c e
services. Why d o n ’t you give e ith e r
B eanie B ro a d h e ad , J o h n K arn or
Phil Miller a c a l l . . . a n d see how
h e lp fu l th ey c a n be?

SOUTH ST. JOSEPH, MISSOURI 6 4 4 8 8
TELEPHONE 8 1 6 /2 3 8 -1 7 3 8
Northw estern

Banker, M a y ,

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

1971

LJ.

W U L r

JA .

J L / lL U lM U n A iV l

Mr. Wolf, a graduate of Iowa State University
with 20 years’ experience as an editor, is 2nd vice,
president and managing editor. Mr. Dillingham,*
now easing toward retirement, will concentrate
his sales efforts in Illinois and Indiana.
,

to all of their customers, including
farmers and ranchers.
Part of the success of bank-oriented ,
newsletters relates to the relatively low
cost of reaching the people a banker4;
really wants to contact, states Mr.
Crouse. There’s no waste because the
banker has full control over who is on
his mailing list.
Bankers who use “The Picture” *
publications point out that they could
not produce a quality newsletter of
their own for several times the cost be
cause they simply cannot spread over
head costs over a sufficiently large cir
culation. With “The Picture” publications, they can have the true advan
tages of a bank-produced newsletter
when they personalize and localize
page four with their own bank’s mes
sage.
But back of it all, the big factor ac
counting for the growing number of
sponsors of these bank-oriented news
letters is the results they accomplish
for banks. Typical is the comment r
from a banker who uses both newslet
ters: “Our surveys convince us that
The Living Picture and The Farm Pic
ture help us lure new customers and
develop more full-service banking cus
tomers.”
For bankers, this is the true signifi- 1
cance underneath the shiny surface of
the new offices of Bank Services, Inc.,
and Farm Business Council, Inc.— End.

In crease S&L R eq u irem en ts

MEMBER
F .D .I.C .

Chairman Preston Martin of the
Federal Home Loan Bank Board to
day announced a further increase in
liquidity requirements for members of
the Federal Home Loan Bank System.
Effective May 1, 1971, associations
will be required to increase overall liq
uidity from 6Vi percent to IV i percent'*
of savings and short-term borrowed
funds. The share of that amount that
must be in short-term liquid assets was
also increased from 2Vi percent to 3
percent, effective January 1, 1972.
k

Jack H. Babcock
Second Vice President

Fred H. Douglas
Vice President

Floyd D. Foreman
Vice President

Anderson W. Harris
Agricultural Loan Officer

David R. Johnson
Vice President

Robert E. Johnson
Senior Vice President

Robert E. Larsen
Vice President

GOOD
REASONS

Thomas L. Matthaidess
Assistant Correspondent Bank Officer

John H. Mitten
Vice President

Conway Norman
Agricultural Representative

Delmar J. Olson
Second Vice President

Marvin G. Rohn
Agricultural Loan Officer

Frank O. Starr
President

To Visit Our Hospitality Room During
the Nebraska Bankers Convention.
H ilto n H o te l

Iow a R oom

The O m aha N atio n al B an k
M EM BER FEDERAL DEPOSIT IN SU RA N CE CORPORATION
N orthw estern

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Federal Reserve Bank of St. Louis

Banker, M a y ,

1971

90
A lv in G o o d w in , Mayor Leahy’s as
sistant in charge of federal programs, r
read a letter from the mayor in which
he supported the idea of a black-owned
bank. In the letter, Mr. Leahy said the ■*
city would deposit a portion of its fed
eral funds in such a bank.
* >
R o d n e y W ea d , executive director of A
Wesley House, and Mr. Phillips said
many problems will have to be over- À
come before the bank can actually
open. They said the major problems
at this time are raising the required * ^
t the annual meeting of NBC Co., quarter of 1970 of $394,199. It was $500,000 capitalization and finding a
a net income for the first quarter pointed out by officials of the company qualified person to head the bank.
* * *
of 1971 of $318,971 was reported, that 1971 included a one-time loss afThis compared to a figure of the first ter taxes of $50,200 on securities.
More than 71 per cent of the space
The 1971 first quarter earnings per in the new First National Bank build- *•share were $.51 before security losses ing has been leased, Alfred G. Thom- ^
and $.44 per share after security sen, leasing agent for the building, said
losses, which compares with last year’s recently.
The 22-story building under con
first quarter earnings of $.55 a share.
National Bank of Commerce, wholly struction at Sixteenth and Dodge t
owned by NBC Co., had deposits of Streets has about 237,000 square feet ^
$144,688,000 at the end of the first of net rentable space, according to
^v
quarter compared to $126,985,000 a Thomsen.
Of that total, more than 169,000
year earlier, an increase of $17,700,000 in deposits. The bank’s loan total square feet has been leased, he said. '
was $86,276,000 compared to $84,- Another 10 per cent is committed or
is being negotiated for, he said.
480,000 in 1970.
The leased space includes slightly
Management pointed out that the
bank enjoyed a very fine growth in de more than 100,000 square feet that the
posits and the loan demand continued First National Bank will occupy. The
IN S T A N T
strong in the first quarter of 1971. bank and other tenants lease the space
C O M M U N IC A T IO N
Earnings suffered because of the sub from First National of Nebraska, Inc.,
with our new Mark 200
stantial reduction on interest rates re a one-bank holding company that owns J
Message Center.
(
ceived on loans compared to the very the bank and the building.
*
^
slight
reduction
in
the
cost
of
funds
The AS&I Mark 200 is an entire
used by the bank.
The Center Drive-in Bank, 4225 ^
Advertising/Public Relations Depart
ment that works for you 24 hours a
Center Street, recently received recog
day. It lets you speak to the passing
nition from the Women’s Division of x
OM AHA N E W S . . .
community with dozens of messages
the Omaha Chamber of Commerce for %
(Continued from page 82)
each day, not only in front of your
“beautification of the community.”
building, but also with additional
The three story structure has 3,500
sell
stock
in
the
bank
of
$20
a
share,
panel-units at other offices and stra
square
feet of space on each floor, and
Mr.
Phillips
said.
He
said
the
organi
tegic high-traffic locations around
zation will seek incorporation from the has bronze solar glass windows that
town. Copy is controlled from a sin
state that would allow it to sell stock comply with the dark tone of the ex-v
gle keyboard; change it as fast as
terior. Gollehon, Schemmer and Asso
by
mid-April.
you can type it. Program the same
message on all panels, or different
Mr. Phillips also said a board of di ciates designed the building which was A
built by Franklin Rogers Construction
messages on each, simultaneously.
rectors will be selected by then.
For additional information, call
Company.
During the meeting, guest speaker
A
collect or write our Regional Office
L. C. Squires, president of the Park
nearest you.
Way National Bank, a Negro-owned
.fam es H . M o o r e, retired senior vice
bank in Kansas City, Missouri, told the president of the Omaha National j
group that a black-owned bank is im Bank, died recently at the age of 67. f
portant to the black community in en Mr. Moore began with the bank in
couraging the establishment and ex 1930 and was named a vice president
A M E R I C A N
S I G N
a n d
I N D I C A T O R
pansion of Negro-owned business and in 1942. He was named senior vice
president in 1958 and remained in that
in fostering “black pride.”
Home Office: N. 2310 Fancher Way, Spokane,
Mr. Phillips later said that studies capacity until his retirement in July ol>
WA 99206, Area Code (509) KE 5-4101.
Welsey House officials and Omaha Na 1968. Mr. Moore was a former treas
Regional Offices: New York, N.Y.; Dayton,
tional
Bank officials conducted last urer of the Nebraska Bankers Associa- ^
Ohio; Jacksonville, Fla.; Dallas, Tex.; Des
September and October support the tion and a life member and past direc
Plaines, III.; Aurora, Colo.; Los Angeles, Calif.
Representatives and Field Engineers
feasibility of a black-owned bank, lo tor of the Robert Morris Association, '
serving every city.
an organization of bank loan officers. 4
cated in the Negro community.

N o rthw estern

Banker, M a y ,

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

1971

•<

Yousay.
show me?
W e ’d

lik e

to ...in

th e

M issouri
oom
JOM AHA HILTON

Nebraska State Bankers Convention
May 2, 3, and 4.
(Doors open at 4:00 p.m., May 2)

F IR S T

N A T IO N A L

B A N K

L IN C O L N

N orthw estern

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Federal Reserve Bank of St. Louis

Banker, M a y ,

1 97 1

H e r e 's our Correspondent Bank Department s
“ Girl Friday,’’ Charlene Cairns, who’s handling the
calls. She’ll be holding down the fort (with
assistance from our officers) while our Correspondent
Department officers are attending the May Iowa
Group meetings. If you have any questions, she ll
get you the answer. And while attending the group
meetings, talk with Bill Talen, Joe Snyder, Bob Reed
or Verlon Britt. They want to help you with your
correspondent bank needs. If you need assistance,
call Charlene at 515/283-2421, extension 336.
She enjoys being helpful.
____
"the
p a ces etter
bank"

SIXTH AND LO C USTDES MOINES
¡Northwestern

Banker,

May,

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

1P71

•*

Iow a
N E W
J. H . REDMAN

President

A . E. LINDQUIST, JR.

S
Fort Dodge

Exec. V. P.

Des Moines

G rou p M eetin g S p eak ers
A Two featured speakers for the se
ries of Iowa Bankers Group Meetings
will be former National Football
League Official, Art Holst and Donald
Kaul, columnist for the Des Moines

with the Pilot Mound Savings Bank in
1921 and came to Madrid in 1923 to
join the Farmers Savings Bank.

P i lias R etires
Kenneth B. Pillas, assistant vice
president of the First National Bank,
Sioux City, has retired after 48 years
in banking.

N ew

A. HOLST

D. KAUL

Register, who will speak on the “Con
fessions of a Crank Columnist.”
Mr. Holst will address bankers for
Group 5 in Council Bluffs; Group 2 in
Okoboji and Group 3 in Clear Lake.
Mr. Kaul will address Group 6 in
Des Moines; Group 10 in Centerville,
Group 7 in Iowa City and Group 8
in Maquoketa.

W illia m sb u rg A g R ep
Norman Skadburg has been ap
pointed farm rep
resentative at the
Farmers Trust &
S a v i n g s Bank,
Williamsburg. He
will assume his
duties August 1,
after he receives a
master of science
degree in agriculN. SKADBURG
t u r a 1 education
v from Iowa State University. He re
ceived a bachelor of science degree in
the same field from Iowa State in 1969.
For the past two years he has been voca
tional agriculture instructor in the Wil
liamsburg Community Schools.

H am p ton

G r ou n d b re a k i ng
Groundbreaking was held recently
in New Hampton for a new building
for the Security State Bank, to be con
structed at the corner of North Chest
nut and East Prospect Streets. J. P.
Rigler, chairman, and Robert Rigler,
president, were among those present.
Wayne Snyder of Thorson, Brom,
Broshar, and Snyder, Waterloo, was
the architect. Completion is expected
late this year.

S p en ce r N a tio n a l D rive-In
Robert Krzmarzick, president of the
Spencer National Bank, Spencer, has
announced plans to construct a new
drive-in facility for the bank at 17 East

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Federal Reserve Bank of St. Louis

A g -B u sin ess M an o f Y ear
Robert McKee, president of the
Wright County State Bank, Clarion,
was recently honored by the Agricul
tural Business Club at Iowa State Uni
versity, Ames, as Ag Business Man of
the Year. He spoke briefly to the club
and was awarded a plaque.
Mr. McKee was honored for the
bank’s growth record under his direc
tion and for his leadership in commun
ity and service activities.
Mr. McKee is a graduate of Iowa
State and the Wisconsin School of
Banking. He began his relationship
with Brenton Banks in 1949 when he
was employed as assistant cashier at
the First National Bank of Perry and
then transferred to the Jefferson State
Bank, Jefferson, for eight years where
he served as vice president. He came
to the Wright County State Bank in
1959 as president. He is also a director
of Brenton Banks, Inc.

C on stru ction S ta rts a t Victor

ARCHITECT’S SKETCH of new building to be constructed by Farmers Savings Bank
in Victor, Iowa.

G. Happel, president of the
Melvin
Farmers Savings Bank, Victor,

has announced plans to build a new
bank building. The building will front
C.
Walter Anderson, vice chairmanon 3rd Street.
The building will cover 2,880 square
of the City State Bank, Madrid, re
cently was honored for his 50 years in feet and will be finished with natural
banking with an open house at the stone. It will have a cement parking
bank. Mr. Anderson began his career lot with a capacity of 15 cars.

^ 5 0 Y ears in B a n k in g

Fifth. The building, designed by Earl
Kooker and Associates of Spencer, will
occupy the present Ford Tractor build
ing, which will be demolished soon.
The new building will occupy 448
square feet and will have an octagonal
shape and a quas¡-Oriental design. It
will have a cathedral-type ceiling high
lighted by exposed beams. Each of the
eight sides of the structure will have
two arched windows. The exterior will
be of red brick.
Completion is expected to be about
June 15.

Included in the new facility— de
signed by Earl F. Kooker & Associ
ates, bank design consultants from
Spencer, Iowa— will be a drive-up win
dow and night depository. The lock
boxes will be new, and there will be
room for 800 of them.
Construction began last month and
completion is expected in early fall.
N orthw estern Banker, M a y,

1971

Io w a N e w s

G roup 6 in C a p ita l C ity
golf outing will precede the
A
Group 6 meeting of the Iowa
Bankers Association at the Des Moines

Bank, is chairman of the meeting.

Golf & Country
C l u b , Monday,
May 10. Featured
speakers for the
meeting include
John Robb, presi
dent of the Credit
Bureau in Des
Moines; Floyd H.
Millan, president
pro-tem, I o w a
D. TAYLOR
House of Repre
se n ta tiv e s, and
John Hanlon, district director, Interna]
Revenue Service, Des Moines. Dave
Taylor, president, First Federal State

A.M.
10:30 Golf — Des Moines Golf &
Country Club.
P.M.
3:00 Registration — Des Moines
Golf & Country Club.
4:00 Dave Taylor, president, First
Federal State Bank, Des
Moines, chairman, presiding.
4:00 J. H. Redman, president, Iowa
Bankers Association; presi
dent, The State Bank, Fort
Dodge.
4:15 Collin W. Fritz, State Superin
tendent of Banking, Des
Moines.

P rogram

4:30 Wendell Gibson, general coun
sel, Iowa Bankers Association,
Des Moines.
5:00 “Gist of the Fair Credit Re
porting Act As It Affects
Bankers” — John Robb, pres
ident, Credit Bureau of Des
Moines.
5:30 “The Legislature” — Floyd H.
Millan,
president pro-tem,
Iowa House of Representa
tives.
6:00 “Infiltration
of
Organized
Crime in Legitimate Business”
— John Hanlon, district direc
tor, Internal Revenue Service.
6:15 Social Hour.
7:00 Dinner.
8:30 Midnight Music and Dancing
by the West Des Moines Dixie
land Band.

M aq u ok eta A g O fficer

IO W A GROUP
M E E T IN G S
M AY

William Stewart has been appointed
agricultural operations officer at the
Maquoketa State Bank, Maquoketa,
and will assume his duties at the end
of the current school term.
Mr. Stewart received his B.S. and
M.S. degree from Iowa State and did
work on his doctorate at Michigan
State. Formerly a vocational agricul
tural instructor at Pella and Postville,
he has taught the same subject at Maq
uoketa High School for the last 11
years.
He is a past president of the Iowa
Vocational Agricultural Teachers As
sociation.

Des Moines

Centerville

Iowa City

Maquoketa

READY NOW

Council Bluffs

IOWA-NEBRASKA

Okoboji

Gear Lake

John Van Horne

BANK DIRECTORY
Published blj
Northwestern Banker

O ES

Dubuque

We ll See Ya!.

•• •

M O INES

COMPLETE INFORMATION
O N A L L B A N K S IN

IOWA ond NEBRASKA

Bob Roberts

ACCURATE'
DEPENDABLE
POCKET S IZ E
The completely re-edited 1971 lowa-Nebraska Bank Directory is now ready. Up
to date listings of officers, statement
figures, and other vital facts about all
Iowa and Nebraska Banks. Plus informa
tion about leading banks in the Nation's
most important cities. Now only $7.00
per copy. W rite the NORTHWESTERN
BANKER today for your copy. The ad
dress is 306 Fifteenth Street, Des Moines,
Iowa 50309.

N o rthw estern

Banker, M a y,

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

1971

We're taking o ff for
the May Group
Meetings!

The May Group Meetings are all set to go . . .
and so are Homer Jensen and John Brown of
Capital City Bank. Yes, we’re scheduled to
drop in at all of the meetings, and we’re
looking forward to seeing you at one of the
following sessions:

Iowa City

May 12

Group 7

Maquoketa

May 13

Group 8

Council Bluffs

May 24

Group 5

Okoboji

May 25

Group 2

Des Moines

May 10

Group 6

Clear Lake

May 26

Group 3

Centerville

May 11

Group 10

Dubuque

May 27

Group 4

CAPITAL
CITY
BANK
The Full Service Bank with the Personal Touch
EAST FIFTH AND LOCUST IN DOWNTOWN DES MOINES • PHONE 244-5111
Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

• Member Federal Reserve System

Iow a N ew s

G roup 10 to C en terville
he annual meeting of Group 10 of
T
the Iowa Bankers Association will
be held at the Appanoose Country
Club, C e n t e r
ville, on Tuesday,
May 11. Ward
Kilgore, executive
v i c e president,
The Decatur
County
State
Bank, Leon, chair
man of Group 10,
will preside. L A.
M a n n i n g , vice
W. KILGORE
p r e s i d e n t and
cashier of the
Farmers State Bank, Keosauqua, is
secretary. Social activities will include
golf at the Appanoose Country Club
until 4:00 P.M. There will be a Dutch
lunch available at the country club.
Program

P.M.
4:00 Registration — Appanoose
Country Club, Centerville.
5:006:00 Social hour.
7:00 Group 10 Meeting — Ward
Kilgore, chairman, presiding. J.
H. Redman, president I BA,
president, The State Bank, Fort
Dodge.
Collin W. Fritz, state super
intendent of banking, Des
Moines, Iowa.
“Confessions of a Crank
Columnist” — Don “Over-The-

Coffee” Kaul, Des Moines
Register & Tribune. Arthur E.
Lindquist, Jr., secretary, Iowa
Bankers Association.
Adjourn.

G roup 7 M eets
in Iow a C ity
7 of the Iowa Bankers Asso
G roup
ciation will hold its annual meet
ing in Iowa City,
Wednesday, May
12 at the Univer
sity Athletic Club.
Donald E. Noller,
president, F i r s t
National B a n k ,
E v a n s d a l e , is
chairman of the
meeting commit
tee. There will be
D. E. NOLLER
a golf program at
the University Golf Course all day.
P rogram

A.M.
11:00 Registration — University Ath
letic Club
Golf Program — University
Golf Course, all day.
P.M.
2:00 Ladies Tour — University of
Iowa New Museum of Art
5:156:15 Social Flour

LETS GET TOGETHER ! ! !

6:30 Banquet — Gil Voss at the
piano-organ
7:30 Meeting
Master of Ceremonies — Don- *
aid E. Noller, chairman. Group
7.
4
Address — Bump Elliott, ath- x
letic director, University of
Iowa.
— J. H. Redman, president,
Iowa B a n k e r s Association, *
president, The State Bank, Fort ^
Dodge
8:00 Remarks — Glen L. Ingle,
director, U.S. Savings Bonds
Division, Des Moines.
8:05 Colin Fritz, Iowa Superintend- ,
ent of Banking, Des Moines.
8:15 Arthur E. Lindquist, Jr., exec-*
utive vice president, Iowa
Bankers
Association,
Des
Moines
Wendell Gibson, general coun
sel, Iowa Bankers Association,
Des Moines
Election of Officers
8:35 Speaker of Evening — Donald
Kaul, Des Moines Register &
Tribune “Confessions of a
Crank Columnist.”
Music and Dancing — Mr. V
& Guests until 1:30 A.M.
<,

A d d itio n s at P a u llin a
Dennis Petersen recently started
work at the First National Bank of
Paullina as farm representative, and
Richard Fiddelke has returned to the
bank after active duty with the Na
tional Guard.

A. C. at A n th o n B ank
Robert Cloud has been appointed
assistant cashier at the First Trust &
Savings Bank, Anthon. He has been
at the bank since 1966, except for a *
year and a half which he spent in Viet^
Nam.

R etires at O akland
John J. Evans retired recently after
50 years of service with the Oakland
Savings Bank, Oakland. He has served
as bookkeeper, assistant cashier, cash--,
ier, and executive vice president of the
bank and in various positions in city
government.
He has been on the board of direc
tors of the bank also.
He will continue as farm manager
of farms he has managed in the past.

GROUP 10 Meeting
Tuesday - May 11
CENTERVILLE
Northw estern

Banker, M a y ,

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

1971

HOST BANKS
Centerville National Bank
Iowa Trust & Savings Bank

C areer A ttire at O akland
Women employees of the Oakland
Savings Bank, Oakland, have recently
started wearing career attire.

C ilic e 1 8 7 2 o u r d e d ic a tio n lias
L een to p ro v id in g c o m p le te iacilitie s a n d in d iv id u a liz e d L anL ing
service.

C a n we Le o f serv ice to y o u ?

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

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Federal Reserve Bank of St. Louis

N orthw estern

Banker, M a y,

1971

Iow a News

Correspondent Bankers Address Iowa M eeting

MEMBERS of the Correspondent Bank Panel at the Iowa Spring Banking Conference were, le ft to right: Bob Stokes, a.c., First
N ational City Bank, New York; Bob Ziemer, v.p., N orthw estern Natl., M inneapolis; Don Anderson, v.p., Central Natl., Chicago;
Jim Gruenwald, v.p., Davenport B&T, Davenport, m oderator; John Diefendorf, v.p., Security Natl., Sioux City; Bill Aldrich, 2n cU
v.p., Am erican Natl., Chicago, and Jack Beets, v.p., City Natl. B&T, Kansas City. The panel discussed the subject, “ Do you as
a u n it bank make the best use o f you r correspondent relationships?” The extended discussion concluded w ith a question and
answer session and was one of the highlights o f the conference. The m eeting attracted 363 registrants and was held at Johnny
and Kay’s H yatt House in Des Moines.
,,

Elgin Morris (le ft), v.p., Iowa C ounty Sav
ings, Marengo, was elected pres, of the
Iowa Ju n io r Bankers of the Iowa Bank
ers Association at the Spring Banking
Conference. Joe Lawler (no t pictured),
a.v.p., State Bank, Fort Dodge, was
named v.p. The new secy, is Gary Steven
son (rig h t), a.v.p., 1st Natl., Sioux City.

ISU A g C redit S c h o o l
The 26th Annual Agricultural Cred
it School, sponsored by the Iowa
Bankers Association and Iowa State
University, will be held on the Uni

George Schaller (rig h t), v.p., Citizens
First Natl., Storm Lake, was elected pres,
of the Federation of C ounty Bankers of
the Iowa Bankers Association at the
Spring Banking Conference. Don Kout
(le ft), exec. v.p. & cash., Farmers &
M erchants
Savings,
Lone Tree, was
elected v.p. The new secy, is James Mal
len, pres., Farmers Savings, Kanawha.

versity campus from June 7 to June
18. The school is intended to “give
those attending a better understanding
of the job of extending and administer
ing agricultural credit.”
The program consists of a first-and
second-year curriculum of two weeks

each which run concurrently each year. <
Those completing the two-year course
will receive certificates of completion. *
The first-year course includes class
es in farm management, farm apprais
al, marketing, administration of agri
cultural credit, and general agriculture.
The second-year program includes
economic policy, agricultural credit, *
administration of agricultural credit,
and general agriculture.
First- and second-year enrollments
will be limited to 60 students each on
a first come-first served basis and are
open to anyone interested. The régis- <
tration fee is $100 per person. Hous
ing is available at an additional charge
of $40 to $55.
Representing the 1BA in planning
and direction of the school will be El
mer H. Mertz, president of the Hayesville Savings Bank, Hayesville, and Ar
thur E. Lindquist, Jr., executive vice
president and secretary of the IBA.
Those interested in enrolling should
contact H. B. Howell, Department of
Economics, 560 East Hall, Iowa State
University, Ames, 50010.

S ee You
a t th e
Io w a

W e may be able to assist you in financing the premium

B ankers
G ro u p

on your bank purchase.

M e e tin g s
C all Eric H e a d e r

RICHARD C. NEWLIN

3 1 9 -3 6 4 -6 1 1 1

BANK INVESTORS
c / o Io w a R e a lty
352t

B e a v e r A v en u e

Des M o ines, Io w a Phone 5 1 5 — 2 7 7 -6 2 1 1

N o rthw estern

Banker, M a y ,

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

1971

Life In v e s to rs In su ran ce C o m p a n y o f A m e ric a
3 7 5 C ollins R oad NE
C e d a r R a p id s , IA 5 2 4 0 6

Let our com puter handle your correspondent
banking needs and you’ll be able to concentrate on
the “ people” aspects of the banking business.
We’ll do your com puter and transit work, check clearing
and proof of deposit and collection of checks.
All you have to do is worry
about being a happier person.
See, you're smiling already.
110 E. Park
Waterloo, Iowa

National Bank o f W aterloo

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Federal Reserve Bank of St. Louis

Northw estern

Banker, M ay,

1971

100

Iowa News

Maquoketa Site fo r Group 8
1 he Maquoketa Country d u b will
be the site of the Group 8
meeting to be
held on Thurs
day, May 13 at
Maquoketa. Le
Roy A. Mohr ex
ecutive vice presi
dent of the Miles
S a v i n g s Bank,
Miles, is chair
man of the group
L. A. MOHR
and presiding of
ficer for the meeting.

Program

A.M.
9:00 Registration — Maquoketa
Country Club.
P.M.
1:00 Group 8 Program —- LeRoy
A. Mohr, executive vice presi
dent Miles Savings Bank,
Miles, presiding officer.
“What The SBA Can Do For
The Bank” — M. Erwin Jansma, loan officer, Small Busi
ness
Administration,
Des
Moines.

R. FLEMING

C. GUSTAVESON

W e ll See You
at the
May Group Meetings
T o the n ea rly 2 5 0 Iowa b a n k ers now u sin g o u r
cred it life p ro g ra m , w e h o p e to see am i g reet each
o f you at y o u r g r o u p m e e tin g .
l o th o se o f y o u w h o are n o t fa m ilia r with N a tio n a l
F id e lity ’s cred it lif e p ro g ra m s, w e w o u ld lik e to tell
you a b o u t th em . L o o k fo r u s at th e g r o u p m e e t
in g s. W e ’ll be lo o k in g fo r y o u .
One o f the Nation’s Strongest b y A n y Standard o f Comparison

~ ^ s { a t io n a l f i d

lit y

INSURANCE COMPANY KANSAS CITY, MO. 64106

N o rthw estern

Banker, M a y ,

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Federal Reserve Bank of St. Louis

1971

J. H. Redman, president, Iowa F
Bankers Association; presi
dent, The State Bank, Fort
Dodge.
Collin W. Fritz, state superin
tendent of banking.
Arthur E. Lindquist, Jr. exec
utive vice president and secre
tary, Iowa Bankers Associa
tion.
“Confessions of a Crank Col
umnist” — Donald Kaul, D es,
Moines Register.
Adjournment.
5:00 Social Hour —- Maquoketa
Country Club.
5:008:00 Buffet Dinner.
7:0011:00 Music for listening and danc
ing pleasure by the “Ambassa
dors.”
For the Ladies
Tour — Nickelodeon Museum
and Jackson County Histroical *
Museum.
Demonstration & Exhibit of
Tole painting by Mrs. Alvin
Wood.
Demonstration & Exhibit of
Découpage by M. D. “Bud” ^
Fenton.
Golfing facilities will be made avail
able for both men and women.

C lin ton C oun ty O fficers
Quentin C. Kuebler, office manager
of the Union Savings Bank, Grand
Mound, has been elected president of
the Clinton County Bankers Associa
tion. Other officers are Philip W. Hall,
president of Camanche State Bank,
Camanche, vice president, and Ray
mond G. Tiedje, assistant vice presi
dent of First National Bank, Clinton,
secretary-treasurer.

B en to n C oun ty S a v in g s
The Benton County Savings Bank,
Norway, recently held an open house
to celebrate its 90th anniversary and
to give the public a chance to view its
new addition. The bank gave free gifts <
to everyone attending and flowers to
the first 100 women and awarded two
savings bonds by drawing. Refresh
ments were also served.
LEGAL FORMS
Any form you need we stock, or will
print. Special forms then stocked
for prompt shipment on re-orders.
IOWA LEGAL BLANK
& PRINTING CO.
Box 238, Webster City, Iowa

CY KIRK

MAX ROY

Banks in Iowa
who work with Cy Kirk and
Max Roy know why LaSalle’s
correspondent business
is growing so fast
IN 1970, La Salle’s correspondent balances really
climbed . . . 14 places over 1969.
This won’t come as any great surprise to La Salle
correspondent banks in Iowa who work with Cy
Kirk and Max Roy. They build our business by
building business for the correspondent banks they
serve.
If you would like to find out what Cy Kirk or
Max Roy can do for your bank, call them at (312)
443-2774.

'A FULL \
SERVICE
BANK,

LA SALLE NATIONAL BANK, LA SALLE BANK BUILDING, 135 S. LA SALLE ST., CHICAGO, ILLINOIS 60690 • PHONE (312) 443-2774
V.

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Federal Reserve Bank of St. Louis

N orthw estern B anker, M a y ,

1971

102

Iowa News

Council Bluffs Host May 24
Bluffs
C ouncil
the annual

will play host to
Group 5 meeting

to be held Mon
day, May 24 at
the Club 64 and
Lake Shore Coun
try Club. Ray
mond L. Graalfs,
v i c e president,
State Bank and
T r u s t, Council
Bluffs, is chair
man of the group.

L. GRAALFS

Program
A.M.
10:00 Registration — Club 64.
11:00 Conference of County Officers.
12:15 Luncheon — Club 64.
12:30 Invocation — Rev. Boyd Baher.
1:15 Call to Order — Raymond L.
Graalfs, chairman.
Welcome — Charles Hannan,
president, C o u n c i l Bluffs
Chamber of Commerce; executive vice president, 1st Nation
al Bank, Council Bluffs.
'Observations & Introductions
of Guests — Raymond L.
Graalfs.
General Remarks — J. H.
Redman, p r e s i d e n t , Iowa
Bankers Association; president,
The State Bank, Fort Dodge,
Collin Fritz, State Superintendent of Banking, Des
Moines.

N o rthw estern

Banker, M a y,

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Federal Reserve Bank of St. Louis

1971

“Fair Credit Reporting Act” —
George Wruck, p r e s i d e n t ,
Credit Bureau of Greater
Omaha, Omaha.
Address — Arthur J. Holst,
official, National F o o t b a l l
League.
Arthur E. Lindquist, Jr., secre
tary, Iowa Bankers Associa
tion, Des Moines.
3:30 Adjourn.
5:30 Social Hour — Lakeshore
Country Club.
7:00 Banquet.
Introduction of Guests.
Entertainment
and
Door
Prizes.
For the Ladies
P.M.
12:30 Luncheon — Club 64.
1:30 Welcome by Mrs. R. L.
Graalfs.
Mistress of Ceremonies —
Mrs. Winfield S. Mayne.
Demonstration of unique landscape painting by Inge Chase,

In v estm en t B an k ers Day
The Iowa Investment Bankers" Association will hold a Field Day at the
Des Moines Golf and Country Club
on May 20, with additional activities
the evening before.
Starting at 5:00 p.m. the evening
before, there will be registration and
cocktails, a Calcutta golf auction, dinner and a pool tournament and cards.
On May 20 activities will start at

8:30 a.m. and will include golf, lunch- r
eon and refreshments, tennis and gin
tournaments, cocktails and final sweepstakes sales, dinner and award of v
prizes, and a sweepstakes “squack ex
change" and final drawing. James S.*
Cownie of Becker & Cownie, Inc., Des
Moines, is in charge of reservations.

N a m ed to H all o f Fam e
M. M. Mike McMichael, senior vice >.
president, Iowa-Des Moines National
Bank, was recently named to the Iowa^
Hall of Fame by
the Des Moines
Register & Trib
une and for those
who remember his
athletic feats in ^
the early thirties
— it comes as no
great surprise.
It wasn't at all
easy for Mike as *
he battled spinal
M. M. McMICHAEL
menengitis at a *
very early age and it was only through
willful diligence and courage plus many
hours of hard work at the YMCA that
Mike finally overcame the disease that
almost took his life. He went on to
Roosevelt High School in Des Moines
in 1930 and in his freshman year was
named on the All-State Squad in bas
ketball. He followed suit the remaining
three years in high school making him
the only man named 4 times to the
All-State team. He did this by break
ing one scoring record after another —
records that lasted in Des Moines for
over 30 years.
Upon his graduation from high
school he had earned 11 varsity letters
at Roosevelt High School: three in
baseball; three in football (he was also
an All-City quarterback); four in bas
ketball and one golf (a sport he now <
excells in). His academic achievements
were not to be overshadowed as he
left high school with almost a straight
A record. From there he went on to
play basketball for Northwestern where
he was named to the All-Big 10 his
sophomore year. A foot injury kept
him from further recognition in his
college years though he did play in the
National Pro League after college with
Goodyear in Akron, Ohio.
In 1954 Mike joined the Iowa-Des
Moines National Bank. Along with his fbanking duties, he has managed to ex
cell in one more sport — golf. He re
cently teamed with Jim Wickizer of
Des Moines to win a Las Vegas tour
nament and a trip to Hawaii.
T

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Federal Reserve Bank of St. Louis

104

Iowa News

Group 2 To Meet a t Okoboji
cenic Okoboji with its beautiful
S
waters and weather will be the
site for the Iowa Bankers Association
Group 2 meeting
on Tuesday, May
25 at the New
Inn. Banks from
Buena Vista, Clay
and D ickinson
counties will host
the event. J. L.
C a m p b e l l , Jr.,
president of the
Humboldt Trust
& Savings Bank, J- L. CAMPBELL, JR.
H u m b o l d t , is
chairman of the group and will serve
as presiding officer. National Football
League official, and popular speaker,
Art Holst will address guests. Registra
tion will begin at 9:30 on Tuesday, at
the New Inn. The business meetings
will be held at 2:00 P.M.

Dr. j . W . A an D yke
Dr. J. W. Van Dyke, 97, died re
cently in Hollywood, Calif., where he
had lived since his retirement in 1947.
He was the father of Carle ton C. Van
Dyke, president of Toy National Bank,
Sioux City, and J. William Van Dyke,

chairman of Toy, and had himself been
a vice president and director of Toy
National and Farmers Loan and Trust
Co., Sioux City, for 38 years.
Dr. Van Dyke was a graduate of the
University of Iowa and Northwestern
University Dental School and was a
dentist in Sioux City for a few years
before entering banking.
A memorial service was held in Hol
lywood and the body was brought to
Sioux City for funeral services and
burial.

J o in s F o rt D o d g e B ank
Richard L. Smith has been elected
executive vice president, The State
Bank of Fort Dodge, according to an
announcement from James H. Redman,
president of the
bank. The post
has been vacant
since the retire- I
ment in mid1970 of Arthur
Gerken.
Mr. Smith has
resigned as vice
p r e s i d e n t and
manager of the
R. L. SMITH
correspondent

bank department at Central National
Bank & Trust Company, Des Moines,
to accept this appointment.
He is a native of Clarke County,
Iowa, where his achievements in 4-H"
work won for him a scholarship to
Iowa State University. His studies were
interrupted by three-years of duty with
the Air Force, during which he served
as a pilot in the European Theater. He
returned to Iowa State and received >
his B.S. degree in 1949, majoring in
Animal Husbandry, with an Economics^
minor. He is also a graduate of the
School of Banking at Madison, and the
Ag Credit School at Iowa State Uni
versity.
Mr. Smith entered the banking busi
ness with the Jefferson State Bank in*
1949, remaining there three years.
From 1952-57 he managed his father’s
farm and livestock operation and
served as Consumer Cooperative field I
man before joining Northwestern Mu
tual Life Insurance Company as a loan*
representative. He left that firm in 1962
to join Central National’s correspond
ent bank department as representative.
After successive promotions he was ^
named a vice president in 1968 and
head of the department last August.
^

Just a casual reminder

G R O U P 2 M e e tin g
T u esd a y —

M ay 2 5

O K O B O JI

HOST BANKS
Albert City Savings Bank, Albert City The First National Bank, Newell
First Trust & Savings Bank, Alta
Peterson State Bank, Peterson
Everly State Bank, Everly
The First National Bank, Rembrandt
Farmers Savings Bank, Fostoria
Home State Bank, Royal
Security State Bank, Lake Park
First State Bank, Sioux Rapids
Citizens State Bank, Marathon
Clay County National Bank, Spencer
Dickinson Co. Savings Bank, Milford Farmers Trust & Sav. Bank, Spencer
N orthw estern Banker, M a y ,

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

197t

Spencer National Bank, Spencer
First National Bank, Spirit Lake
The State Bank, Spirit Lake
Citizens First National Bank, Storm Lake
Commercial Trust & Sav. Bank, Storm Lake
Security Trust & Savings Bank, Storm Lake
Citizens State Bank, Webb

105

All the locks,
time-release vaults, bonded guards,
burglar alarms, teller-actuated buzzers,
window gratings, hidden cameras,
v

automatic sirens, armored carriers
and German shepherds
in the world
can’t protect you from the rising threat
of your officers getting sued.
But our complete, customized D&O Liability coverage can

You can deter the bank robber with good
security measures, but lawsuits, like rob
beries, can hit any bank.
Any stockholder, depositor or government
agency can sue you for any one of a number
of reasons today.You would have to defend.
Should you lose the lawsuit, or be forced
to make an out-of-court settlement, the re
sult would prove costly to you personally,
the other directors and officers, the bank
and even the community.
Directors and Officers Liability Insurance
is your o n ly sure protection against a men
ace as real as the bank robber, Our policy

is keyed to the size and operations of your
bank, so that the protection is efficient—
and economical.
Bob Carney has the knowledge and ex
perience to counsel you on D&O coverage.
He w ill answer your questions and prob
ably ask some th a t may provoke your
thinking on this timely subject. Available
to small and large banks in all states.
Geo, F. B ro w n & S o n s , In c. is th e u n d e r
w rite r fo r th e D ire c to rs a n d O ffic e rs P ro
g ra m o ffe re d to b a n k s in Io w a th ro u g h th e
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GEO. F. BROWN &SONS, INC.
* Since 1912 •
175 West Jackson Blvd, * Chicago, Illinois 60604* (312) 427-4737
New York • Boston • Los Angeles • St, Petersburg • Minneapolis • San Francisco • Dallas ■ Atlanta

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Federal Reserve Bank of St. Louis

N orthw estern Banker, M a y ,

1971

106

Io w a

N ew s

Group 3 Returns To Surf
he familiar lyrics to the Broad
way play “Hello Dolly” will ring
out as Group 3 returns to the Surf
Ballroom in Clear Lake, Wednesday,
May 26. Sponsors are already singing,
“We’re glad to have them back where
they belong.”
Last May the
bankers in Group
3 had to coniine
t h e i r activities
due to the fact that
the Surf was not
available. S i n c e
that time, Mark
Arneson, p r e s ident of the Clear
Lake Bank and
A. L. MORSE
Trust Company,
and asso c ia te s
have taken over operation of the Surf.
Anticipated registration will once
again top the 1,000 mark, as local
bankers prepare for a great floor show
featuring top line entertainment from
the stage and TV world. Russ Morgan
and his orchestra will provide dinner
music and background music for the
evening show.
Albert L. Morse, executive vice
president, Home Trust and Savings
Bank, Osage, chairman of Group 3,
will preside at the formal business ses
sions. The complete program follows:

ir s t

A.M.
10:00 Registration — Surf Ball
room.
P.M.
12:15 Ladies luncheon and style
show — Holiday Motor
Lodge.
1:00 Call To Order — Albert L.
Morse, chairman of Group
3. Welcome — Mayor Dale
Pattchull, Clear Lake.
Remarks — James Redman,
president, Iowa Bankers As
sociation; president, The
State Bank, Fort Dodge.
“What Makes You Think
You’re Safe?” — Tom Danaher, acting commissioner,
Iowa Department of Public
Safety.
“Don’t Shoot the Referee”
— Art Holst, official, Na
tional Football League.
Report of nominating com
mittee and election of offi
cers.
Remarks — Art Lindquist,
Jr., executive vice president,
Iowa Bankers Association.
5:00 Tranquility Time (Relaxing
beverages to soothe the soul).
6:30 Banquet.
Russ Morgan’s Orchestra.
8:00 Floor Show featuring na-

m e r ic a

n c

M e m b er New Y ork S tock E x change
and o th er
Princip al Stock and C o m m o d ity E xchanges
L in c o ln • O m aha • G ran d Island • H a s tin g s • A tla n tic • Des M o in e s • S io u x C ity •
C edar R a pids • Kansas C ity

---------------------------- v

-----------------------------

GENERAL UNITED
LIFE INSURANCE

o f C redit
Don Nachtman
Eastern Iowa

N orthw estern B a n k er, M ay, 1 9 7 1

R etires at Fort D o d g e
Waldo H. Weiss,
68, has retired
as vice president
and cashier of the
First N a t i o n a l
B a n k of Fort
Dodge. He had
worked for 53
years at the bank
(formerly known
as the Fort Dodge
W. H. WEISS
National), having
begun in 1918 asf
an errand boy and transit and filing
clerk. He had been an officer for 34
years, having been elected cashier in
1937, vice president, cashier, and trust
officer in 1954 and a director in 1956. '
He will continue as secretary of the/
board of directors.

D K Q R ep at W a terlo o
D a i n Kalman
& Quail, Incorpo
rated, Minneapo
lis-based regional
investment bank
ing firm, has an
nounced the app o i n t m e nt of
Michael J. Thorn
ton as a registered
representative in
THORNTON
their Waterloo of
fice.
Thornton was formerly a registered
representative for Loewi & Co., Inc. in
Davenport, Iowa.
He attended Creighton University,
Omaha, Nebraska and, the University
of Northern Iowa, Cedar Falls.

C hange at N ew ell
Nola Ellrich, an employee of the
First National Bank, Newell, since
1959, has been advanced to assistant
cashier, replacing Irene McCrea, who
has retired after 18 years at the bank
to join her husband in his business.

COMPANY

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Phone (515) 274-356!

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Federal Reserve Bank of St. Louis

tionally-famous stage and TV
stars.
9:30 Dancing to Russ Morgan’s
Orchestra.

F. E. DAVENPORT
REGIONAL OFFICE
2066 FARNAM ST.
OMAHA, NEB. 68102

VALE
B A N K SERVICE DIV.
RYE, N.Y. 10580

Where’s Mike? Where’s Bernie?
Where’s Fred? Where’s Ed?
Where’s Larry?
WHERE’D ALL OUR DROVERS GO?

TO THE IOWA GROUP MEETINGS, THAT’S WHERE
That’s right— when it comes to correspondent banking, where else would you ex
pect to find our Drovers, but at all the bankers’ meetings. So while you re there make
it a point to look ’em up. Ask for M ik e W helan, our President. O r Fred Cummings
or Bernie M iller, whom you met before. O r Ed Rietz. O r Larry M akoben.
Who knows, it could prove profitable. It w ill,if you give them an opportunity.

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Federal Reserve Bank of St. Louis

THE DROVERS
T H E D R O V E R S N A T IO N A L B A N K O F C H I C A G O
47t h and Ashland Avenue

Chicago, Illinois 6060 9

( 3 12) 927- 70 00

108
Mr. Lavigne recently joined Central
National Bank, having served in an of
ficial capacity with the United Califor
nia Bank, Cudahy Packing Company«
and Transworld Airlines. He is a grad
uate of Hayden High School, Topeka',
Kansas, and Washburn University, To- -*•
peka, Kansas.

Des Moines News
chairman and
B
• president of Central National processing
Bank and Trust Company, announced
C.

Grangaard,

Harry J. Lavigne was elected data
officer, replacing L. M.
Tesdell, Jr., who has resigned.

several changes in the official staff fol
lowing the monthly directors’ meeting,
April 20.

Mr. Grangaard also announced the
resignation of Dick A. Smith, install
ment loan officer and assistant manag
Eddie A. Wolf,
er, who will become associated with Os
vice president, was
, ceola State Bank and Trust Company,
named head of ' -ggjjjfet
Osceola.
the correspondent
I
Mr. Wolf joined Central National
bank department, RF
JmBank in 1941 and has served continu
succeeding Richously since that date, with the excep
ard L. Smith, vice
V JT vT v
tion of three years in the Navy during
president, who reWorld War II. From 1947 to 1959 he
was manager of the bank’s transit de
partment and transferred to the corre
spondent bank department in 1960.
ecutive vice presi- *' *E A
He was elected assistant cashier in
dent. J e r r y
1961, assistant vice president in 1965,
Thornton was elected correspondent and vice president in 1970. Mr. Wolf
bank officer.
is a graduate of Arnolds Park High
School, Agricultural Credit School at
Iowa State, and Graduate School of
Banking, University of Wisconsin.
Mr. Thornton joined Central Na
tional Bank in 1969, following previ
ous employment with Iowa Develop
ment Commission and the Washington,
D. C. office of Senator Jack Miller. He
is a graduate of Roosevelt High School,
Des Moines, University of Iowa, B. B.
A., and attended Graduate School,
J. THORNTON
H. J. LAVIGNE
American University.

INSTALMENT DEPARTMENT
PROFITS
More important than ever before!

PROTECT THEM
Several hundred Upper Midwest banks utilize our single interest coverage,
which we originated many years ago. No checking for primary insurance.

Instalment lending protection is our only business.

Call or Write: G. D. VAN WAGENEN CO.
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(612) 333-2261
N o r th w estern Banker, M a y ,

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Federal Reserve Bank of St. Louis

1971

Iowa State Bank, East 7th and Lo
cust, recently celebrated 30 years
of banking service. The bank opened
its doors to the public on April 16,
1941, at East 6th and Locust, and later
moved to their present building at East
7th and Locust, which has been peri
odically enlarged to accommodate exy
pansion.
Established by George O’Dea, a pi
oneer Des Moines businessman who
died in 1959, the bank has consistent
ly grown until today total resources are *
nearly $25 million.

Two retirees from the Iowa-Des
Moines National Bank died during the
month of March. George Jorgensen,
a former vice president in the commer
cial loan department, died on March's
19 after a brief illness. He retired from
the bank in 1963 at the age of 65. He
had joined the bank in 1917 and was
named vice president in 1946.
Roine Duncan died at the Karen
Acres Nursing Home on March 21 at
the age of 62 after an extended illness
from multiple sclerosis. The illness hack
necessitated her early retirement from
the trust department in 1964.

B a n k s o f Iow a E le ctio n
Seven directors were reelected last*
month to the board of Banks of Iowa,
Inc., a bank holding company that
owns all the outstanding shares of The
Merchants National Bank of Cedar
Rapids. The directors are Duane Ar
nold, E. J. Buresh, James E. Coquil-^
lette, Louis Fellman, Howard Hall,
John T. Hamilton II, and F. Forbes
Olberg.
Mr. Hamilton, president of Banks
of Iowa, reported record earnings in
the first quarter of 1971 of $513,431,
compared to $366,190 for the same*
period in 1970, or earnings per share
of 59£ based on 865,000 shares, a
28.3 per cent increase over the 46£ per
share earned on 800,000 shares in the
first quarter of 1970.

109

We keep
bankers
hours.
Today it takes hard work to provide the services
we want to provide our correspondent banks. And long
hours. If that means our men have to put in extra hours,
travel extra miles, then that’s what they do. Gladly.
Otherwise they wouldn’t be around long.
And, neither would you.
If that’s the kind of service you want from a
correspondent bank, call. Then we’ll call on you.
Day or night.

Ybu d o n t
need us.
W e need you!
Central National Bank & Trust Company
L O C U S T A T S IX T H A V E N U E , D O W N T O W N D ES M O IN E S , P H O N E 2 4 3 - 8 1 8 1 . M E M B E R F D IC .

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

Northw estern

Banker, M a y,

1 97 1

110

lowo News

Hawaiian Fest fo r Group 4
f hula girls, swaying grass skirts, the P.M.
beat of tom-toms, the lure of the
1:30 Richard E. Tool, chairman
islands appeal to you, then make
Group 4, president and chair
Thursday, May 27 a date on your
man Farmers & Merchants Sav
calendar to attend
ings Bank, Manchester.
the G r o u p 4
Invocation —■ Rev. Pete S.
meeting in Du
Lawdis, Pastor, St. Elias the
buque. Splendid
Prophet Greek O r t h o d o x
entertainment is
Church, Dubuque.
in store for guests
Welcome Address — Gaylord
who attend this
M. Couchman, Mayor, City of
f e s t i v e group
Dubuque.
meeting to be held
Remarks — J. H. Redman,
at the Julien Mo
president Iowa Bankers As
tor Inn, as the
sociation, president The State
R. E. TOOL
T a h u n a PolyBank, Fort Dodge.
n e s i a n Revue,
Collin W. Fritz, State Superin
with a knife fire dance, strange rituals
tendent of Banking, Des Moines.
and the best kind of hula action, will
2:20 Program — “Retailing Today”
be featured.
panel discussion by Metro Re
The theme for the exciting group meet
tailing Committee, Dubuque
ing is appropriately enough “Polynesi
Area Chamber of Commerce:
an Paradise”.
Mels Turnquist, retail manager,
Turnquist Carpet House; Roland
A.M.
Kennedy, manager, Sears Roe
9:30 Registration — Julien Motor
buck & Co., Dubuque; Harvey
Inn.
Zuckerman, owner-o p e r a t o r,
10:30 County Officers Meeting —
Zuckie’s Clothing Stores, Du
The Forum.
buque; George Welling, manager,

J. C. Penney, Inc., Dubuque; Al
Winkelman, manager, Stampfer’s, Johnson-Hill, Dubuque;
James E. Walsh, president, Bird
Chevrolet Co., Dubuque.
Remarks — Wendell B, GibsonT
general counsel, Iowa Bankers
Association, Des Moines.
Arthur E. Lindquist, Jr., execu
tive vice president, Iowa Bank
ers Association, Des Moines.^
5:30 Cocktails.
6:30 Dinner.
Invocation — Rt. Rev. Msgr.
Francis P. Friedl, executive vice
president, Loras College, Du
buque.
Entertainment — Tahuna and
His Polynesian Dancers.
*
For the Ladies: 12:00 Noon
— Luncheon & style show.

C orrection
It was incorrectly stated in the April
issue that Bruce Bye has been elected*"
president of the Holstein State Bank
at Holstein. Mr. Bye was elected vice
president. N. D. Obrecht continues as
president of the bank and made the an
nouncement of Mr. Bye’s election as
vice president.

Y our Hosts — The D u b u q u e C ounty Bankers
have created for vou a

’P

GROUP IV Meeting

Thursday — May 27
at the
Juilen M otor Inn

,r4i.

DUBUQUE

You have a date
to remember,
HOST BANKS
Aloha!
Cascade State Bank, Cascade
American Trust & Savings Bank, Dubuque
Dyersville National Bank, Dyersvilie
Dubuque Bank & Trust Co., Dubuque
Farley State Bank, Farley
First National Bank, Dubuque
New Vienna Savings Bank, New Vienna
Key City Bank & Trust, Dubuque
The State Bank of Worthington, Worthington
Jackson State Bank, Bernard Office
N o rth w e s tern Banker, M a y ,

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

1971

Ill

Am erican Trust Decision Makers...

T h e y w o rk w e ll to g e th e r...a n y p la c e and
in a n y w a y ... s o m e tim e s u n d e r try in g
c o n d itio n s ... b u t th e y h a ve w h a t yo u
w a n t in a c o rre s p o n d e n t bank.
D iscu ss y o u r n e e d s w ith Leo, B ob &.
C h ris ty d u rin g th e A n n u a l M e e tin g of
G ro u p IV, Iowa B a n k e rs A sso cia tio n ,
T h u rs d a y M ay 27 in D u b u q u e . See You
T hen, A loha!

American Trust and Savings Bank
D U B U Q U E , IO W A Member FDIC, Federal Reserve System

N o r th w estern Banker, M a y ,

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

1971

112

Iowa News

Crystal Ware Is A sset to Gaining
A n d Keeping Savings Accounts
Dubuque Bank and Trust
T heCompany
has once again added
to its fine continuity program of pre
miums over the past several years; this
time by offering fine line crystal for its
banking customers.
Initially, the bank started out by fea
turing stainless ware two and one half
years ago. After customers were al
lowed enough time to get a full set, the
bank then extended the program to
chinaware with extensive place settings
to fit its depositors’ needs. Because of
the tremendous success and the high
retention rate of accounts (over
75% ), Dubuque Bank and Trust
Company decided to complement its
premium program with crystal ware.
Concerning investigation into the
crystal programs, Allan T. Thoms, vice
president and trust officer of the bank
said:
“Much to our surprise, this type of
quality crystal is still somewhat of a
rarity in the bank market and most of
the suppliers that we contacted had
gone almost exclusively to monogrammed glassware. This was very ob
jectionable from our standpoint due to
the greatly increased need for storage.
Instead of finding room to store an
adequate amount of this type of mer
chandise, it also becomes necessary to
store an adequate amount for each let
ter of the alphabet, with the additional
problem of knowing which particular
letter or letters would be in the great
est demand at any given time. We also
found that the quality of the monoN o r th w estern Ban ker, M a y ,

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

1971

gramming in most cases was not that
good and its use in automatic dish
washers was prohibited.
“So, for these reasons wre decided to
forego the monogram and attempt to
present a finer quality of crystal. It was
by pure chance that we discovered that
the W. M. Dalton Company had just
begun supplying its leaded crystal to
banks. I happened to be in Rochester,
Minnesota, on some personal business
and noticed a billboard advertising a
crystal offer from the Northwest Bank
of Rochester. At that time, they were
offering just one program of the
French imported cyrstal and so from
this we have developed our program
as follows.
“We offer two varieties of leaded
crystal, first the French Chantilly pat
tern, which is a five place setting, is

machine made in France and contains
approximately 24% lead. Secondly, we
have the American hand blown De
votion pattern crystal which is a four
place setting and contains approxi
mately 18% lead. Each pattern is of-*
fered to our customers for an initial
deposit of $25.00 to a new savings ac
count or $25.00 to an existing savings
account. For this amount, the customer
can receive two stems of the French^
Chantilly pattern or one stem of the
American Devotion pattern. For each*
additional $10.00 or more deposit to
these accounts, a customer may pur
chase for $3.00 plus tax two stems of
the French Chantilly pattern or one ^
stem of the American Devotion pat
tern.”
,
Mr. Thoms feels that the results of
the crystal program have been excep
tional. In the initial month of the pro
gram Dubuque Bank and Trust has
had to re-order twice on the French *
pattern and has opened 150 new ac
counts in less than a one-month period.^
Breakage from the factory to the bank
has been insignificant in that all crys
tal is individually and professionally
wrapped for handling.
With the Dubuque bank, the French
pattern outsells the American pattern^
8-to-l. Both patterns are available at
W. M. Dalton & Associates in New
town, Pennsylvania, through this area’s
representative, Monroe Abels, in High
land Park, Illinois.
Regarding any suggestions Mr.
Thoms had on the crystal program and
how extensive it should be he said: “T
would highly recommend that anyone
considering this program would use
both patterns, as a choice is much pre
ferred to just one offering, and I be
lieve this has greatly enhanced the over
all effectiveness of the crystal pro
gram.”
y

113

CALL YOUR
COMMERCE
Tom Cannon is another reason why one bank out of ten
in the country does business with Commerce of Kansas City.
Keep Tom on the go —call him today.

« |S t

* e Commerce
Bank
of Kansas City

Northw estern

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

Banker, M a y ,

1971

114

/öwer

News

Explain Liquor Deposit
Facts an d New C.D. Program
conjecture has
C onsiderable
recently concerning the

arisen
direct
deposit of State liquor store receipts
in Des Moines
a n d t h e con
sequent e a r l i e r
collected credit to
the State Treas
ury.
Speculation has
been rife regard
ing the immediate
creation of “zero”
balances in Iowa
M. E. BARINGER
banks now han
dling State liquor
store accounts. This is in no way true,
and it is time to set the record straight
on liquor store deposits.
Two forces stimulated the innova
tion on daily direct liquor store de
posits: a recommendation of the Gov
ernor’s Economy Committee and a
legislative appropriation to the State
Auditor in the amount of $ 100,000 for
an audit and appropriate recommenda
tions concerning present management
of the liquor control commission. The
Governor’s Economy Committee made
the following specific recommenda
tion: “Arrange for automatic transfer
of excess funds from bank balances of
store accounts to the Treasurer of
State.” This recommendation, coupled
with the charge by the legislature to
the State Auditor, precipitated the re
cent change on liquor deposits.
Here’s how the present direct-de
posit system works:
A liquor store manager deposits to
day’s receipts in his local bank at the
end of the day’s business. This is all
in currency and coin; so no float is in
volved here. Then, tomorrow, the store
manager makes out a detailed report
on those receipts and makes out a “no
signature required” check payable to
the Treasurer of State in the amount
of the previous night’s deposit. The re
port, along with the check, is mailed
to the liquor commission and should,
with one-day mail service, arrive in
Des Moines on the third day. The
check is stripped from the report and
deposited that day in a Des Moines
bank. Assuming that the check goes
to the clearing house that morning and
is a normal two-day item, the mini
mum float to the bank in the liquorstore town is five days. More often,
however, it will be seven days because
N orthw esfern B a n k e r , M a y ,

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

1971

by M. E. BARINGER
Treasurer State of Iowa
of intervening weekends. This is quite
different from the “zero” balance be
ing discussed in various quarters these
days.
What prompted the speed-up in liq
uor store deposits? Well, it was noth
ing more than the realization that
banks in liquor-store towns had on de
posit an average of 17 days’ receipts.
Add to this the normal 7 to 10 days
float that was prevalent and it turned
out that effective liquor store balances
were nearly a month in becoming col
lected balances for the State Treasury.
This was deemed too long.
This office does not favor the daily
direct deposit for all liquor stores, be
cause balances in many smaller com
munities are so low that they more
properly could be deposited once per
week. However, pending an evaluation
of the program by the State Auditor
and the State Comptroller, the State’s
chief accounting officer, we shall con
tinue to cooperate to the fullest in the
present daily deposit program.

B o n u s P la n W in n e r

MIDWAY BANK & TRUST, Cedar Falls,
has won seventh place in the Travelers
Check Bonus Plan Contest held by the
First National City Bank of New York.
Pictured is Phil Berg, president o f M id
way Bank & Trust, receiving a plaque
from James M. Barry, area representa
tive of the First N ational City Bank. O th
er bank officers are Darrel Wilken and
Dale Diamond.
Midway ranked seventh in its category
of branch and u n it banks w ith deposits
under $1 0,000,000, and Phil Berg said
the bank also received an interest-free
deposit of $20,00 0.00 fo r th is fine
achievem ent in sales o f Travelers Checks.

Concurrently, the Treasurer of
State’s office has initiated a certificate
of deposit program with Iowa banks
across the state, banks that had previ
ously indicated a specific desire to ob
tain state funds when the latter became*
available. The money, used to fund
specific trust or special fund obliga- ^
lions, has been placed at the official
state rate of five percent, for maturities
ranging from 153 days out to 365 days y
and due dates ranging from August 18,
1971 to March 31, 1972. At this writ-v
ing, $14,350,000 has been so depos
ited. Also, at this writing, we are out
of such money! Of the thirty banks ap
proached, 20 accepted the C.D.’s and
10 declined. At this juncture, with ^
“Fed” Fund rates now lower than they
State rate, it is safe to assume that
most of the money is being used to sat
isfy local loan demand rather than to
invest in money-market instruments.
From the Treasurer of State’s viewpoint, these deposits satisfy two critical
needs: stimulation of the Iowa econ-^
omy and an improvement in earnings
for the state of about $40 per million
per day, compared to average current
Treasury bill rates which have been
consistently in the 3Vi per cent area. *
As soon as more money becomess
available, additional C.D.’s will be
placed by the State Treasurer’s office
—first with the remaining banks on
our initial list, then with other banks
which indicate a desire for funds.

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Federal Reserve Bank of St. Louis

IkYYOiVHAWsiYT ,s
*

WHAT YOU CAN EXPECT FROM
THESE BANKING EXPERTS

That’s why so many
banks in Iowa enjoy a solid business relationship with the Correspondent
J
Bank Services Department of the Iowa Des
H r Moines National Bank.
W Here are knowledgeable bank people who have the ^
expertise to show you imaginative financial methods s
that can help your bank function to its full potential.
These bankers know the importance of your bank to your
community, and they can suggest ways you can better serve
your customers . . . more efficiently, more profitably.
The lowa-Des Moines Correspondent Bank Services Department
offers:
• Complete Computer Services (DDA, proof transit, savings,
CD’s, reserve checking, installm ent loans, bond accounting,
payroll accounting, account reconciliation, reports by
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Bernie Kersey

C o rresp o n d w ith u s . . . a t

M H BH

The Yes Bank
IOWA-DES MOINES \

NATIONAL BANK

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis

(515) 284-8686