Full text of The Northwestern Banker : November 1963, 69th Year, No. 916

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

RADIO FREE EUROPE TOUR— Page 70

NEW BANK OF AMERICA PRESIDENT— Page 8

MODEL RAILROADERS— Page 101

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Federal Reserve Bank of St. Louis

C LY D E PEREM SKY,

Cashier
Clyde Peremsky began his association with
the Merchants National Bank 39 years ago.
Since then he has worked in the Savings De­
partment, the Discount Department and the
Installment Loan Department, in addition
to being a Teller. All transfers of funds are
also handled by Clyde.

He is Assistant

Treasurer and a member of the Executive
Board of the Boy Scouts, an activity in

Clyde Peremsky is just one of the competent
MNB personnel who can advise you from
years of experience. Call on him soon.

Me/icUnfo National!
C E D A R R A P ID S

MEMBER F.O.I.C.

TH E FU LL SERVICE B A N K FOR THE B A N K S OF IO W A


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Federal Reserve Bank of St. Louis

3

Take a good look at the importance
of a Chicago banking connection
*

t

*

Chicago is the home of many of the nation’s
greatest businesses. The influence of their
plans and decisions reaches far beyond the
city’s boundaries, affecting your community
in many ways.
Keeping in touch w ith the dynam ic
Chicago business scene can be important
to your bank. It calls for capable on-the-spot
representation.
As a correspondent of The Northern Trust,
you are in close touch w ith the business
opportunities which emanate from a major

m etropolis. Through The Northern Trust
and its o ffice rs, you are right here on
La Salle Street, for all practical purposes.
Of course, this is just one of the many
benefits you gain from a connection with
The Northern Trust Company. A booklet
describing our services, entitled “ Suggested
Services for Correspondent Banks,” is yours
for the asking. If you prefer, one of our
officers will visit you. Phone or write N. Hall
Layman, Vice President, or one of his asso­
ciates, in the Banking Department.

N O R TH ER N / RUST
50 SOUTH LA SALLE STREET
CHICAGO

90,

ILLINOIS

FI 6-5500 . MEMBER F. D. I. C.
No. 916.

BANK

N orthwestern Banker is published m onthly by the N orthw estern B an k er Company, 306 Fifteenth Street, Des Moines, Iow a 50309. Subscription 50c
postage paid at Des Moines, Iowa. Address all m ail (subscriptions, change o f address, F orm 3579, m anuscripts,

per copy,
per year. Second class
Digitized
for $4
FRASER
m ail i.em s) to above address.
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Federal Reserve Bank of St. Louis

B A N K IN G
W ITH

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A mail bag disappeared. In it was a
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Continental Illinois National Bank &
Trust Com pany from the First U nion
Bank & Trust Com pany o f Winamac,
Indiana. T h e checks were being sent to
Chicago for collection and credit to the
First U n ion when they were lost, stolen,
or destroyed.
But all outgoing checks had been
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N o need to inconvenience W inam ac
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A nd the bank was saved the time and
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Fast facsimile service, available at no
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in transit, is a plus value o f the basic
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5
“ Wants NORTHW ESTERN
BANKER Sent to Ethiopa”
“ My son, who is with the Peace Corps in
Ethiopia, has asked me if it is possible for
me to obtain a subscription to your magazine
to be sent to him in Ethiopia. He is teaching
banking and finance there and he wishes to
use your magazine in his work. He was asso­
ciated with this bank (as assistant cashier)
until he was granted leave of absence to
enter the Peace Corps.
“ I wish that you would write and let me
know what a year’s subscription would be
sent directly to him.”
H. E. Bachut, President, Burt
Savings Bank, Burt, Iowa.
(Ed. N o te : Mr. Bachut’s son is Herman
Bachut, Jr., and we will be glad to add his
name to our growing list o f foreign subscrip­
tions.)

Oldest Financial Journal West of the Mississippi

for your N O V E M B E R , 1963, reading
69th Year

No. 916

“ Please Send Reprints of
Correspondent Bank Survey”
(Ed. N o te : Since publication in the October
B anker o f our exclusive
survey, “ How the Banker Chooses His Corre­
spondent Bank,” many requests have been
received fo r reprints o f the survey, primarily
from city bankers who are anxious to review
the survey in detail. Here are excerpts from
a few o f the letters received. The staff sin­
cerely thanks the many bankers who have
extended such complimentary remarks about
this survey and other features in last month’s
issue.)
“ I would appreciate receiving three or four
copies to keep in my files as I thought it was
exceptionally well done.”
David D. Baer, Assistant
Cashier, The Northern Trust
Company, Chicago, III.
“ I am wondering if it is possible to obtain
five or six copies of the Correspondent Bank
Survey featured in the October N orthwest ­
ern B anker . We will appreciate this favor.”
William B. Aldrich, Assistant
Cashier, American National
Bank and Trust Company of
Chicago, Chicago, III.
“ We would like six copies for our corre­
spondent bank officers.”
Gene C. Eaton, Senior Vice
President, National Bank o f
Commerce Trust
Savings,
Lincoln, Nebr.
“ I would appreciate having four copies of
this survey if that many are available.”
John E. Mangold, Vice Pres­
ident, Merchants N a t io n a l
Bank, Cedar Bapids, Iowa.h
“ I am enrolled at the Stonier Graduate
School of Banking and the subject of my
thesis is ‘Principles of Loan Participations
Between City and Country Banks.’ . . . I
am interested in studying the results of your
survey. Would you be kind enough to send
me a copy for use in my theses.”
H. L. Buth, Jr., Vice Presi­
dent, North Carolina Nation­
al Bank, Charlotte, N. C.
“ We would like to take advantage o f your
offer for several complimentary copies of
your Correspondent Bank Survey as featured
in the October issue o f your very fine mag­
azine. This is, o f course, ‘must’ reading for
all correspondent bank men and will be very
much appreciated for the use of our men.”
Eugene Hultman, Vice Presi­
dent, C o lo r a d o N a tio n a l
Bank, Denver, Colo.

EDITORIALS

N orthwestern


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Federal Reserve Bank of St. Louis

18

A cross the Desk from the Publisher

FEATURE ARTICLES
5

D ear E ditor

21

F rontispage—

23

The Outlook fo r Banking— W illiam F. K elly

24

H ow W e Increased Profit on A uto Loans— John F . K eeley

26

W hat City Banks W ant from the N ation ’s L argest Banks
— A N orthwestern B anker S u rvey

27

H ow One Bank Rents S afe D eposit Boxes

28

Bankers Y ou K now — Rudolph A. Peterson

29

Public Education Through Finance Forum s— F ra n ces B a k er

30

Creating a Favorable Im age in a Com m ercial Bank
— B en C. W ooten

32

N ew M aterials to A ttra ct the Y ou n ger Generation

46

A .B .A . A g Credit C onference

STATE BANKING NEWS
M innesota News

57

71

M ontana News

Tw in City News

58

73

Nebraska News

South Dakota News

61

74

Omaha News

N orth Dakota News

65

76

Lincoln News

Colorado News

67

85

Iow a News

W yom in g News

68

98

Des Moines News

OTHER FEATURES
100

Index o f A dvertisers

102

In the D irectors’ Room

102

Conventions

NORTHWESTERN BANKER
306 15th S tr e e t , Des M oines, Io w a 5 0 309, Telephon e

Chairman

Publisher

C lifford De Puy

Ben J . H a lle r , J r .
D oyle Minden

Circulation Department
Lena Sutphin

Field Representative
A I Kerbel

244-8163

Associate Editor

L a rry W . N othw eh r
E lizab e th Cole

Code 51 5 )

Editor

M alcolm K. Free lan d

Associate Editor
Advertising Assistant

(A rea

Auditor
Bertha S o derqu ist

Field Representative
Paul M asters

Frank P. S ym s, V ice P re sid e n t, 550 Fifth A v e n u e , N ew York 3 6 , JU dson 2-7126
M ilton F . B ock, V ice P re sid e n t, 654 B aker B uilding, M inn eap olis, FE d e ra l 6-6357

N o r t h w e s t e r n B a n ke r, N o v e m b e r , 7963

6

P la n s W o r l d ’s F a i r P a v i li o n

FOUR EXECU TIVES survey the attraction which will bring the entire world to New
Y ork’ s doorstep next year. From left: James A. Henderson, v.p., and Ralph T. Reed,
chmn. o f exec, comm., both with American Express; Robert Moses, pres, o f New York
W orld’ s Fair, and Howard L. Clark, pres, of American Express. The scale model of
the fairgrounds and buildings, partially shown above, cost a half-million dollars and
will be exhibited later at American Express’ million dollar pavilion located at the
entrance to the fairgrounds.
m e r ic a n e x p r e s s

will play a

A key role at the New York
World’s Fair of 1964-65 with a million-

dollar pavilion that will offer a mul­
titude of services to bankers and
their customers.

Howard L. Clark, president of the
company, joined Robert Moses, presi­
dent of the Fair Corporation, in an
inaugural ceremony signaling Ameri­
can Express’ entry into the Fair as
a leading exhibitor. The company’s
famous blue cheque was designated
“Official Travelers Cheque of the New*
York World’s Fair 1964-65.”
A special feature of the pavilion will
permit immediate delivery of travel­
ers cheques by banks to their cus­
tomers at the Fair via Western Union
direct wire. This will protect Fairgoers in the event of financial emer- *
gency. Pavilion services will include
cashing of personal checks for peo­
ple carrying the company’s credit
card, and foreign exchange.
The pavilion will house a Fair in­
formation and travel information
service for visitors. American Ex- a
press has also acquired a block of 850
hotel rooms for each day of the Fair,
at all price levels. Bankers and their
customers will be able to draw upon
this supply of space for reservations
during the rush season.
Mr. Clark and Mr. Moses jointly c
pushed a button on a teletype ma­
chine connected by direct wire with
the company’s network of 300 offices
abroad and thus transmitted a mes­
sage, the first to encircle the world
from the Fair grounds. The message
proclaimed the company’s participa- K
tion in the Fair and launched a cam­
paign to attract foreign visitors.

S P EC IA LIZ IN G IN D EBT OBLIGATION S
...w e ll-s u ite d to th e in vestm en t needs
of banks and individuals
Tax-exempt and taxable bonds, notes, debentures, equipment
trust c e rtifica te s —the ob lig a tion s o f well established
municipalities and corporations are our stock in trade.

H A L S E Y , S T U A R T & CO. In c .
123 S O U T H L A S A L L E S T R E E T , C H I C A G O 9 0

• 30 BROAD

AND O T H E R P R I N C I P A L C I T I E S

N o r t h w e s t e r n B a n ke r, N o v e m b e r , 1963


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

S T RE E T , N E W Y O R K 4

7

problem in Washington
(to get foreign trade assistance)

solution in New York
(ithrough Chase Manhattan)
W h y does a banker in the State o f W ashington, or any other state, com e to Chase
Manhattan for technical assistance in a foreign transaction? Because he knows, just
as bankers everyw here do, that he can depend on Chase Manhattan for direct,
resultful action in the European C om m on Market, Free Trade Area and other parts
o f the world. T h rou gh headquarters in N ew Y ork, Chase M anhattan’s round-thew orld offices, correspondents, and associated institutions supply top-priority service
for our banking friends. A ll Chase Manhattan correspondent services receive the
im m ediate attention o f knowledgeable, experienced specialists.
W h erever y o u are, w hatever y o u r correspondent banking need, call on Chase
Manhattan, N ew York. R em em ber—
M ost U. S. banks that have named a N ew York correspondent rely on
the people at Chase Manhattan.

THE CHASE MANHATTAN BANK
1 C h a s e M a n h a tta n P la z a , N e w Y o r k , N .Y . 1 0 0 1 5

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

Q

M em ber Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n ke r, N o v e m b e r , 1963

8
ON THE COVER

P e te r so n S u cceed s H eise ,4s
P re sid en t n t flunk o f A n iericu
executive change took
A MAJOR
place at Bank of America in San
Francisco the first of this month when
Rudolph A. Peterson succeeded S.
Clark Beise as president and chief ex­
ecutive officer. Mr. Beise retired Oc­
tober 31 at age 65. The following day
he succeeded former President Carl F.
Wente as chairman of the bank’s ex­
ecutive committee. Mr. Wente be­
comes honorary ch a irm a n of the
board. Jesse W. Tapp continues as
chairman of the boai'd of directors.
Mr. Peterson was president of the
Bank of Hawaii until October, 1961,
ON T H E

COVER

New executive management team at
Bank o f America consists of, from left,
Rudolph A. Peterson, president and chief
executive officer; Jesse W. Tapp, chairman
o f the board, and S. Clarke Beise, retiring
president and chairman o f the executive
committee.

r

when he rejoined Bank of America,
being elected vice chairman. That
post will not be filled at this time.
A detailed sketch of Mr. Peterson’s
banking career appears in a special
feature article in this issue.
Mr. Beise served as president of
Bank of America since April 1, 1954.
During his tenure of office, the bank’s
resources increased from $8.3 billion
to $13.6 billion; domestic branches in­
creased from 545 to 846; numerous
new services were developed; the
bank pioneered in electronics, and
B of A enjoyed its major expansion
throughout the world.

Financing Terms Announced
A $2,000,000 issue of direct obliga­
tion serial notes for St. John Hospi­
tal Corporation of Detroit, Mich., was
offered last month by B. C. Ziegler and

NEVER BE AUTOMATED

O n e bank fu n c tio n that w ill
probably never be automated is
"check counseling” . . . the job o f
helping customers in the selection
o f their bank checks. It is an im ­
portant position, requiring know ­
led ge, sales ability, tact, and a
desire to serve the customer’s best
interests.
F rom the bank’s viewpoint, the
function is doubly significant. N o w
that the need for using printed
checks is recognized, substantial
sums o f money are involved. Cost
recovery takes on new meaning.
Checks that are given away free
are mighty expensive, no matter
how low their cost may be, while
checks that are sold to customers
insure full cost recovery. Secondly,
in these days o f intense competi­
tion for customer approval, the
furnishing o f a checkbook that fits
the customer’s needs can build im ­
proved bank relations and g ood
will.

th e
F or millions o f Americans, the
checkbook is the most familiar and
meaningful symbol o f their bank
and its service. They may g o for
weeks, or even months, without
com ing into the bank, but there is
seldom a day that they do not have
some occasion to refer to or use
their checkbook. So the impres­
sion o f your bank that exists in the
minds o f your customers may de­
pend, in large measure, upon how
well you have anticipated their
needs in the type o f checkbook
you have helped them select.

[,

T o banks who are interested in
upgrading the function o f check
counseling, we offer the services
o f our representatives. They are
equipped with slide films, b o o k ­
lets, and the kn ow -h ow that will
help your people do a better job
for your customers and your bank
and at the same time give them
greater personal satisfaction in
their work.

D E L U X E C H EC K P R IN T E R S INC.
NORW ALK

C L IF T O N

C H IC A G O

KA N SA S C IT Y

PA OLI

R IC H M O N D
S A IN T P A U L

CLEV ELA N D
DALLAS

D E T R O IT

IN D IA N A P O L IS

CH A TSW O RTH

■

PO RTLAN D

J
N o for
rthw
e s t e r n Ba n ker, November, 1963
Digitized
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Company, underwriters of institution­
al bond issues, based in West Bend,
Wis.
The notes are rated “AA” by Fitch ^
Investors Service and mature serially
from 1965 to 1978 with interest cou­
pons from 4!4 to 5 per cent priced at
par.
Proceeds of the issue will complete
financing for a $4,185,000 addition of
153 beds and a chapel to St. John Hos- ,
pital in Detroit, a civil corporation of
the Congregation of the Sisters of St.
Joseph.
A $2,500,000 issue of direct obliga­
tion serial notes for the Sisters of
Providence of St. Mary-of-the-Woods,
Ind., also was offered by the Ziegler ^
firm.
The issue carries an “AA” rating by
Fitch Investors Service and an uncon­
ditional guarantee by Saint Mary-of- <
the-Woods College in Indiana.
S T A T E M E N T OF O W NE RS H IP
M A NAGEM EN T AND CIRCULATION

(Act of October 23, 1 9 6 2 ; Section 4369, Title 39,
United States Code)
1. Date of filing----September 20, 1963.
2 Title of publication — N O R T H W E S T E R N
BANKER.
3. Frequency of issue— Monthly.
4. Location of known office of publication (Street,
city, county, state, zip code)— 306 15th Street, Des
Moines, Iowa 50309.
.
5. Location of the headquarters or general busi­
ness offices of the publishers— 306 15th Street, Des
Moines, Iowa 50309.
6. Names and addresses of publisher, editor, and
managing editor:
„.
Publisher— Malcolm K. Freeland, 306 15th Street,
Des Moines, Iowa 50309.
Editor— Ben Haller, Jr., 306 15th Street, Des
Moines, Iowa 50309.
.
7. Owner (If owned by a corporation, its name and
address must be stated and also immediately thereunder
the names and addresses of stockholders owning or hold­
ing 1 percent or more of total amount of stock. If not
owned by a corporation, the names and addresses of the
individual owners must be given. If owned by a part­
nership or other unincorporated firm, its name and
address, as well as that of each individual must be
given.)
Northwestern Banker Company, 306 15th
Street, Des Moines, Iowa 5 0 3 0 9 ; Malcolm K. Freeland,
President, 306 15th Street, Desi Moines, Iowa 503 0 9 ;
Ben Haller, Jr., Vice President, 306 15th Street, Des
Moines, Iowa 50309.
8. Known bondholders, mortgagees, and other security
holders owning or holding 1 percent or more of total
amount of bonds, mortgages or other securities (If there
are none, so state) : Malcolm K. Freeland, President,
Des Moines, Iowa; Ben Haller, Jr., Vice President, Des
Moines, Iowa; Clifford De Puy, Chairman, Des Moines,
Iowa.
9. Paragraphs 7 and 8 include, m cases where the
stockholder or security holder appears upon the hooks of
the company as trustee or in any other fiduciary relation,
the name of the person or corporation for whom such
trustee is acting, also the statements in the two para­
graphs show the affiant’ s full knowledge and belief as to
the circumstances and conditions under which stockhold­
ers and security holders who do not appear upon the
books of the company as trustees, hold stock and secu­
rities in a capacity other than that of a bona fide own­
er. Names and addresses of individuals who are stock­
holders of a corporation which itself is a stockholder or
holder of bonds, mortgages or other securities of the
publishing corporation have been included in paragraphs
7 and 8 when the interests of such individuals are
equivalent to 1 percent or more of the total amount of
the stock or securities of the publishing corporation.
10. This item must he completed for all publications
except those which do not carry advertising other than
the publisher’ s own and which are named in sections
132.231, 132.232, and 132.233, postal manual (Sec­
tions 4355a, 4355b, and 4356 of Title 39, United
States C ode).
Average No.
copies each
issue during Single issue
preceding
nearest to
filing date
12 months
A. Total No. copies printed
(Net Press Run)
5,186
5,287
B. Paid circulation
1. To term subscribers
by mail, carrier delivery
or by other means
4,038
4,090
2. Sales through agents,
news dealers, or otherwise
NONE
NONE
C. Free distribution (includ­
ing samples) by mail,
carrier delivery, or by
other means
981
954
D. Total No. of copies dis­
tributed. (Sum of lines
B l, P.2 and O)
5,019
5,044
I certify that the statements made by me above
are correct and complete.
MALCOLM K. FREELAND,
Publisher.

9

Takeyour choice Reprints from
The Studley, Shupert Trust Investment Council

1963 Seminar

TRUST

IN V E S T M E N T

C O U N C IL

Some of the leading personalities in the banking
and investment fields spoke freely and off the
record at the Studley, Shupert Trust Investment
Council 1963 Seminar held on October 17 and 18.
A cross section of their material that was not off
the record has been reprinted by multilith under
the titles in the coupon below.
We consider these papers—despite their lack
of the authors’ penetrating off-the-record opinions
—a valuable addition to any Community Bank
Trust Officer’s reference library.
Consequently, the limited number of copies avail­
able are being offered to non-Council Members on

a "first-come, first-served basis,’ ’ and at no cost.
If you would like any or all of these—without
obligation on your part—check the coupon and
mail it today. We will try to fill your request.
Also, if you would like information on Studley,
Shupert Trust Investment Council Membership,
we will be happy to send you details. As you may
know, the Council consists of a growing group of
progressive Community Banks who depend upon
Council Headquarters and its staff of trust-minded
specialists for a steady flow of trust investment
data and aids, and effective help with their indi­
vidual account problems.

S T U D L E Y , S H U P E R T T R U S T IN V E S T M E N T C O U N C IL
1617 P e n n s y lv a n ia B o u le v a rd , P h ila d e lp h ia , Pa. 19 1 0 3

OFFER LIMITED TO

n

BANK OFFICERS

S T U D L E Y , S H U P E R T T R U S T I N V E S T M E N T C O U N C IL , 1617 Penna. Blvd., Philadelphia, Pa. 19103

Please send me the following 1963 Seminar material. (Check your choice.)

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□
□
□
□

R E G U LA TIO N 9 — TH E OPEN DOOR TO M ODERN
TR U ST D E PA R TM E N T O R G A N IZA TIO N b y R ob ert

C oltm an, V ice President,
N ational Bank.

The

Philadelphia

COST A N A LY SIS IN R E L A T IO N TO A TR U ST D E P A R T ­
M E N T b y R ich ard G. R ob in s, T ru st Officer &

John W osch en ko, Jr., Asst. T ru st Officer,
Tradesm ens B ank and T rust C om pan y o f
Vineland, Vineland, N . J.
M A IN T A IN IN G
w it h in

SEPARATE

m anageable

T ru st In vestm en t
Bank, A tlanta, Ga.

S E C U R ITY

l im it s

Officer,

HOLDINGS

b y Charles W ray,
Fulton N ational

by D a v id C.
B evan, Chairm an o f the Finance Com m ittee,
T h e P ennsylvania R ailroad C om pany.
the

eastern

r a il r o a d

s it u a t io n

(Statistical
D ata ) b y Charles P. N eidig, Partner, W hite,
W eld & C om pan y.
o u t l o o k f o r c h e m ic a l s a n d d r u g s

j

□
□
□
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□

F IR E AND C ASU ALTY STOCKS AS TR U ST IN V E S T ­
M EN TS b y Joseph D . Sargent, Conning &

C om pany.
how

does

in e v it a b l e

in f l a t io n

affect

in

­

b y R ich ard B. W illis, Assist­
ant Vice President, P rovid en t Tradesm ens Bank
and T ru st C om pan y.
v e s t m e n t p o l ic y

W HAT

IS

A

?

T R U ST

IN V E S T M E N T ?

Sm ith, V ice President,
E xchange Bank.

G irard

b y M orton
T ru st C orn

u s b y John R . Bunting,
V ice President, T h e Federal Reserve B ank o f
Philadelphia.

the w orld challenges

G U ID E L IN E S

FOR

TH E

IN E X P E R IE N C E D

IN

TH E

b y Reese D . Jones,
V ice President, Studley, Shupert & C o., In c.,
o f Philadelphia.

use

of

m u n ic ip a l

bonds

IN FO R M A TIO N A BO U T S T U D L E Y , S H U P E R T T R U ST IN V E S T M E N T C OU N CIL M E M B E RSH IP

NAME

T IT LE

BANK
J_CITY


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

S TA TE

N o r t h w e s t e r n Ba n ker, N o v e m b e r , 1963

10

1 st

of

HE Seventeenth Annual Confer­
ence of Bank Correspondents,
T
sponsored by First National Bank in
St. Louis, will be held in St. Louis on
Wednesday, November 13, according
to James P. Hickok, chairman of the
board.
The economic outlook, bank lend­
ing, investment portfolio manage­
ment, agriculture and farm credit,
bank operations, business personnel

J. P. H IC K O K

by five vice presidents of
iHConfortine«;
bank on this panel.

.tS

ìa m ìs

J. B. M IT C H E L L

procedures, and other subjects of
timely interest will be discussed by
First National officers, guest speakers
and by the banker-delegates at morn­
ing and afternoon workshop sessions.
The conference, at the SheratonJefferson Hotel, is expected to attract
between 900 and 1,000 of the princi­
pal officers and directors of First Na-

tional’s correspondent institutions.
An unusual feature of this year’s
conference will be the presentation of
“The Gaslight Square Story” at the
annual banquet.
Guest speakers and panelists sched­
uled to appear before the conference
include True D. Morse, special con­
sultant to Alton Box Board Company,
Farm Journal and Pet Milk Company,
Colorado Springs, Colo.; J. Gordon
Gillespie, manager, Producers Live­
stock and Marketing Exchange, Na­
tional Stockyards, Illinois; Norman M.
Coats, assistant manager, Forecasting
Department, Ralston Purina Com­
pany, St. Louis, Mo.; Arline Avery,
farm representative, Bank of Madrid,
New Madrid, Mo.; Melvin C. Lockard,
president, The National Bank of Mattoon, Mattoon, 111.; Herbert W. Nannen, vice president, Chemical Bank
New York Trust Company, New York
City; R. A. Evans, president and
trust officer, Central National Bank,
Carthage, Mo., and Dr. Paul W. Mc­
Cracken, professor of business con­
ditions, School of Business Adminis­
tration, University of Michigan, Ann
Arbor, Mich.
President John B. Mitchell will pre­
side at a panel discussion on “What’s
New in Banking.” He will be assisted

In addition, other officers of the
bank will conduct four discussion
groups on these subjects: commercial,
real estate and installment loans; gov­
ernment and municipal securities;
bank operations and services, and ag­ v
riculture and farm credit.

1st of Chicago Promotions
Homer J. Livingston, chairman of
the board of The First National Bank
of Chicago, has announced four pro­
motions in the official staff.
Nelson L. Kramer, who started with
the bank in 1930 and was an assistant
vice president in Division “ D,” was
elected vice president of Division “ B,”
which handles the business of textile
concerns, department stores, mail or­
der houses and related industries.
John A. Anderlik, who became asso­
ciated with the bank in 1946 and was
elected assistant cashier in 1957, was
promoted to assistant vice president of
Division “D,” which serves firms in
the insurance, publishing, advertising,
paper and paper product fields.
Also, Alexander H. Glover, who en­
tered the bank in 1937, was promoted
to assistant vice president of Division
“G,” and Richard E. Wilier was pro­
moted from assistant cashier to assist­
ant vice president of that division.

The Difference Between
“ Yesand No"
on many inventory loans
is Douglas-Guardian
Field Warehousing
When an inventory loan lacks all necessary quali­
fications, and your counsel is sought, turn to the
margin of safety offered by Douglas-Guardian Field
Warehousing.
Douglas-Guardian Warehouse Receipts place in your
hands the sound collateral that enables you to say
“ Yes” , serve your customer, and increase your loan
volume.
W rite or call us for prom pt com plete information.

Douglas-Guardian
WAREHOUSE CORPORATION
P. 0 . Box 52978, New Orleans 50, La.

O U R
N o r t h w e s t e r n B a n ke r, N o v e m b e r , 1963


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

BRANCHES IN PRIN CIPA L C IT IE S

I N T E G R I T Y

IS

Y O U R

the host

Phone Area Code 504 523-5353

S E C U R I T Y

11

W e have municipal bond specialists in key cities
These are our resident bond representatives in St. Louis. W e ’re also ready to serve
you and your bank’s portfolio from New York,San Francisco and, of course, Chicago.
This is one w ay we help our correspondents. W e ’d like to help y o u !

HARRIS “

BANK

Organized as N. W. Harris & Co. 1882— Incorporated 1907— Member Federal Reserve System...Federal Deposit Insurance Corporation

111 WEST MONROE STREET—CHICAGO 60690


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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n ke r, November, 1963

...easily, conveniently, economically— with Mosler counter systems
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can be added to another without drilling or cutting. Most installations can be completed overnight—eliminating
annoying disruptions to banking routines.

If
you redecorate your bank, you’ll appreciate this versatile system even more. Counter fronts can be changed
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

T h e M o s le r S a fe C o m p a n y
320 P ark A v e n u e , N e w Y o rk 22, N .Y .

in a couple of hours. There are seven wood grain and five color panels
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the perm anence! Mosler counter system s, made of tough, top-quality
laminates,
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ter and undercounter system s, mail in this coupon.
Federal Reserve Bank of St. Louis

Mosler

THE MOSLER SAFE

P le a s e send m e y o u r illu s tra te d b ro ch u re
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14

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How we helped Hillary climb to the top of the world

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N o for
r t h FRASER
w e s t e r n Banker, N o v e m b e r ,
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1963

The sponsors of Sir Edmund Hillary’s expedi­
tion brought this problem to us:
Scientific and mountaineering equipment had
to be shipped to India, and to Nepal. But im­
port duties ranged as high as lOCK i —no email
expense on a shipment valued at $200,000!
Fortunately, officers in our International
Banking Department were able to help. They
Issued a letter o f credit in favor o f the Indian
government which was deposited in one o f our
correspondent banks in Calcutta. This gave the

Indian government direct recourse if the equip­
ment was not removed after t he expedition. Thus
assured, the Indian government waived all duty.
A year later, another expedition went to Nepal
to continue scientific experiments and to estab­
lish a school for Sherpa children. Again we made
the arrangements on import duties.. And again,
the worldwide reputation of officers at The First
National Bank of Chicago helped accomplish
an uncommon task with unusual speed.
May we help you? Our number is FE 2-6800-

(NTeftHATlONMBAN
f-tiN
SOfPAftTM
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The First National Bank o f Chicago
F¿vwÿv /!//(/¿ík///zdfafj
CliHM«»TO.HKnoii

/ÛOyra??

15

significance foryou
and your
commercial
customers
Newsweek Magazine of Sept. 30, 1963, carried an
advertisement we ran about Sir Edmund Hillary’s
successful climb to the top of the world and the part
our International Banking Department played in
solving some of his import/export problems.
Many similar stories are found in the files of our
International Banking Department as well as in
those o f our eleven lending divisions—each one of
which serves and studies one specific group of in­
dustries exclusively.
Through Division F (banks and bankers divi­
sion), you can call upon the officers of any lending
division. Their specialized knowledge, lending ex­
perience and willingness to participate in your loan­
ing activities can help you make better loans.
Dozens of other valuable services, from portfolio
analysis to guidance in automation, are available
to our correspondents.
Why not talk to one o f our divisional officers.
Tell him your problem. He’ll take it from there.

^

/O O peatá

* At*

T h e F irs t N a tio n a l B a n k o f C h ic a g o
Chicago 90, Illinois
M EM BER FED ER A L D E P O SIT INSURAN CE CORPORATION


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

N o r t h w e s t e r n B a n ke r, N o v e m b e r , 1963

16

N C R Sales Continue to Clim b
ALES of the National Cash Regis­
S
ter Company for the first nine
months of 1963 totaled $415,002,618,
Robert S. Oelman, chairman and
president, announced in New York
following a meeting of the NCR board
of directors. For the comparable pe­
riod of 1962 NCR’s sales were $393,577,734.
Net income was $12,348,076, Mr. Oel­
man said, compared with $13,515,311
for the first three quarters of last
year. The 1963 nine-month earnings
amounted to $1.49 a share on the

8,298,957 shares outstanding on Sep­
tember 30, compared with $1.63 on
8,298,707 shares as of September 30,
1962.
Earnings reported by NCR subsidi­
aries and branches outside the United
States were $10,786,813 after foreign
taxes, compared with $10,820,159 for
the first nine months of 1962. In ac­
cordance with company policy only
those foreign earnings remitted to the
United States, plus the earnings of
NCR’s Canadian subsidiary, were in­
cluded in net income. After U. S.

YOU’LL FIND IT’S
VITAL TO US!
Providing services — ex­
pected and unexpected—
is a part of our philoso­
phy at The First National
Bank. Just one of these
services is providing our
correspondents with a
“ home away from home’’.

taxes these foreign remitted earnings
marily to the to­
w e r e $7,038,729
fo r th e n i n e
months, compared
with
$6,836,363
last year.
Mr. Oelman said
the reduction in
th e
company’s
n e t income for
t h e first n i n e
months of t h e
R. S. O E L M A N
year was due pricreasing volume of NCR’s machine
rental business- -largely made up of
electronic computer systems—which
has characterized the past several
quarters. The rental of such systems
requires that the company initially
bear the substantial manufacturing
marketing, installation and deprecia­
tion costs involved, even though its
rental income is received only over a
period of years, he added.

Diebold Builds New Plant
Young and Selden, Inc., Baltimorebased division of Diebold Incorporated
of Canton, Ohio, will build a new
check-printing and encoding plant in
the city-sponsored Philadelphia Indus­
trial Park.
A leading manufacturer of bank
checks, Young and Selden’s new plant
will serve as a check printing and
MICR (Magnetic Ink Character Rec­
ognition) encoding facility for Y&S
customers. Imprinting of personal­
ized checks with account names and
addresses will be a speciality of the
new unit.

So when you want to con­
duct your business “ as
BUSINESS AS USUAL
IN KANSAS CITY!

usual” when in Kansas

Wouldn’t it be comforting
to know that when you are
in Kansas City you don’t
have to conduct your busi­
ness from a hotel room?
Wouldn’t it help to have a
desk, a phone, a secretary:
and the other fa c ilitie s
that are so important?

City, you can do it at
The First.

on the following se­
QUOTATIONS
lected bank stocks are furnished

by Smith Polian & Company, Omaha
dealers in investment securities, and
are based on figures available as of 4
October 22:

i g

| | i î

MAIN OFFICE— 10th & Baltimore
Drive-In Bank— 13th & Washington

FREE PARKING AT BOTH LOCATIONS
Member F.D.I.C.

N ofor
r t hFRASER
w e s t e r n B a n ke r, N o v e m b e r , J963
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H u n k S tu ck
Q u o t a t io n s

B ID
B an k o f A m e r i c a
65%
B ank o f N e w Y o rk
148
B a n k e rs T ru st o f N e w Y o rk
58 y 8
B o a t m e n S t . L o u is ......
...........
40
C h a s e M a n h a tta n B an k— N e w Y o rk
92%
C h e m ic a l B a n k — N e w Y o rk
83
C o n t in e n t a l I l l i n o i s — C h i c a g o
443/4
F ir s t N a t io n a l B a n k — C h i c a g o
............
76'/2
F ir s t N a t io n a l B a n k — D a l l a s ......................... ..... 71
F ir s t N a t io n a l B a n k — T u ls a
52
F ir s t N a t io n a l C i t y B a n k — N e w Y o r k
. . . I I I I /4
703/4
F ir s t B a n k S t o c k — M i n n e a p o li s ....................
F ir s t N a t io n a l B a n k — S t . L o u is ....................
43
H a r r i s T r u s t & S a v in g s — C h i c a g o .............
.IO II /2
I r v in g T r u s t — N e w Y o r k
47%
M a n u f a c t u r e rs H a n o v e r — N e w Y o rk
53'A
M e r c a n t il e N a t io n a l B a n k — S t . L o u is
48
1103/4
M o r g a n G u a r a n t y — N e w Y o rk
753/4
N a t io n a l B a n k — D e t r o it
N a t io n a l S h a w — B o sto n
66
N o rth e rn T ru st C o .— C h ic a g o
140
P h i l a d e l p h i a N a t io n a l B an k
54%
72
S e a t t le F ir s t N a t io n a l B a n k
S e c u r it y F ir s t N a t i o n a l — L o s A n g e l e s
.. 7 9 %
U n it e d C a l i f o r n i a B a n k
69%
V a l l e y N a t io n a l B a n k — P h o e n ix
65%
W e l ls F a r g o B a n k
81%

ASKED
68 %
151

1

61%
43%
95
853/4
47%
79% 74%
563/4
1 1 4%
74
45%
104%
<
50
56%
51
114
77
69%
144
56%
75%
82%
73
683%
84%

17

First National City
Begins 24-Hour
"Dial-a-loan" service
N E W Y O R K , N. Y . Beginning to­
day, residents of greater New York
merely have to dial 559-3333 to apply
for a loan, any time of the day or night,
on weekends and holidays, too. The
application made by phone can result
in the customer receiving his loan dur­
ing the next banking day with only one
visit to the bank.
This innovation by First National
City puts loan service as close as the
nearest telephone. Special credit inter­
viewers have been assigned to man the
phone around the clock. They obtain
all necessary information and begin
processing the application. In most
cases, a prompt decision will be made
on the morning of the next business
day. When the loan is approved, the
customer is advised to stop at the most
convenient branch, sign any necessary
papers, and receive his money.
The bank said, “ we feel this is an
outstanding opportunity to serve any­
one who requires money for an auto,
boat, home improvements, or any
worthwhile purpose. The “ Dial-ALoan” plan is ideally suited to the
wreek-end shoppe^w ho nowJ* * ^ not

IN JUST OVER ONE YEAR, First National City’s “ Dial-A-Loan” has grown into a
full-fledged success. If our correspondents are considering either this or other
methods of increasing personal loan business we’d be happy to share our experi­
ences with them. Correspondents can depend upon FNCB to help with complete
advice and assistance in all areas of service promotion and bank administration.

N A T IO N A L C ITY B A N K
MEMBER


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

FEDERAL

DEPO SIT

IN SU R AN C E

CORPORATION

N o r t h w e s t e r n B a n ke r, N o v e m b e r , J9 63

18

ACROSS ike DESK
Lw
m
t ike PuW
lifte'i
(boost. William, J>. Jlsdlt^:
P residen t, A m erican B an kers A ssocia tion ;
P residen t, F ir st P ennsylvania Banking
and T ru st Com pany, Philadelphia.

A resolution drafted for the closing meeting of
the A B A ’s 89th annual convention called for the
sale of U. S. wheat and other surplus farm prod­
ucts in all areas of the world where there is a
demand, under terms which bolster this nation’s
holdings of gold and divertible currencies.
We assume that the men who drafted this reso­
lution intended it to endorse the sale of wheat to
Russia. Is it also intended to endorse the sale of
wheat to Red China?
Delegates were given no opportunity to review
the resolution in printed form before the meeting
and they were given no chance to debate the con­
troversial topic on the floor of the convention.
We suggest that the A B A poll its members on
this subject to see if their opinions agree with the
powers who drafted this resolution.
The sale of wheat might help eliminate the U. S.
balance of payments deficit— but let’s not overlook
the fact that on the proposed transactions U. S.
taxpayers will have $100,000,000 worth of subsidy
money in the deal. It is obvious that our taxpayers
will be in the position of subsidizing Communist
purchases. In effect, the Russians are buying
wheat at a lower price than Americans can buy it
for home consumption.

(D qjcU l. J h a n lc

W o A/W l :

S ecreta ry, Iow a B an kers A ssociation,
D es M oines, Iow a.

Even though the Iowa Bankers Association has
long been known for its outstanding conventions
and star-studded programs, each successive con­
vention seems to surpass the previous meetings in
attendance and special features. Last month an­
other record was set when a total of 4,931 bankers
and their wives registered for the 77th annual
convention in Des Moines.
In searching for your “ secrets of success,” one
must certainly pay tribute to the fine cooperation
given by the officers of the association and the
members of your office staff. President Herbert L.
Ollenburg of Garner, Agricultural Committee
Chairman Will A. Jane, Jr., of Marshalltown and
N o r t h w e s t e r n B a n ke r, N o v e m b e r , 1963


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

a host of other Iowa bankers played their roles to
perfection.
One of the plus factors that assures a successful
convention is the ability of your organization to
recognize banking groups who are doing an excel­
lent job in the industry. This year, as an example,
a shop talk session, featuring panelists from eight
Iowa NABAC Conferences, was scheduled as a
part of the convention program. Perhaps no other
group in the banking field is doing more to promote
sound practices and to automate the industry.
Members of the National Association of Bank A u­
ditors and Comptrollers should be given further
recognition, and we suggest that the American
Bankers Association follow your example in pre­
paring future programs for its national conven­
tions.

LDsa./l WjtiqhL (palmatL.:
Chairman o f C om m ittee on B anking and C urrency,
W ashington, D. C.

You have recently stressed the fact that we must
face up to the question whether the trend of the
future will be to the growth of independent unit
banks or toward large scale branch banking, chain
banking and holding company banking.
Your tabulation made of the mergers and new
branches of national banks approved by Comp­
troller James Saxon during his first 17 months in
office shows that he received 147 applications for
permission to merge, approved 140 and turned
down only seven. You point out that even though
the Comptroller is chartering new national banks
to replace those lost by merger, the impressions he
is forming might be misleading. New banks repre­
sent deposits of about $33 million, while those
banks lost through merger had combined deposits
of $2.2 billion!
The tabulation shows that Comptroller Saxon
has approved 893 branches, and over half of these
are for banks having deposits of over $100 m illion!
We agree with you when you state that there is
a need and a place for big business and big banks
in our nation, and we also agree with your state­
ment that we should have just as many locallyowned and locally-managed businesses as possible,
including banks. As you so aptly said, “ It will be
a sad day indeed if all of the Main Streets in
America become absentee - owned and absenteemanaged.

19

. .with the touch of

SYLVANIA
Subsidiary of GENERAL

TELEPHONE s ELECTRO N ICS ^

T V B anking A T I T S B E S T !

creates

CORPORATION

4* m m m m

. . . a sophisticated communications system
From the carefully engineered stainless
steel outside unit, through the instantly
actuated pneumatic system, to the tell­
er’s console inside the bank, transactions
are handled quickly . . . and personally.
Sylvania two-way closed circuit tele­
vision, combined with the experience
o f banking communications specialists
at T V B A N K , has resulted in a remote
banking system that is a pleasure for

C O R P O R A T IO N
BANKERS
T RUST
BUI LDI NG
I N D I A N A P O L I S
4,
I NDI ANA


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Federal Reserve Bank of St. Louis

your customers to use. In addition to

•

broadening the range of services you
can offer through drive-up banking, you
get the follow ing advantages with T V
BANK:

• The opportunity to make banking
more fun for your customers

•

Lower insurance rates

•

Better supervision of drive-up tellers

•

Flexibility in the design of your
installations

During the last 2 y e a r s , TV
Bank Corporation, s p e c ia l­
ists in remote electronic s y s ­
tems for ban k s , w a s r es po n ­
s i b l e for 9 m a j o r b a n k in g
i n s t a l l a t i o n s , f r om A l a s k a
to Fl ori da.

•

Faster and more transactions

A remote banking facility that pays
for itself in five years

If you think drive-in islands are too
costly or if you want to see the newest
concept in banking services, fill out and
send in the coupon below.

TV Bank Corporation, Dept. N
□ Send literature.
□ Have TV Bank Representative call.
Name____________________________________

Title________________________________
Bank_______________________________
Address_____________________________
C ity___________________________ State.

N o r th w e s t e r n B a n ke r, N o v e m b e r , 7963

W • Our AROUND-THE

f

CLOCK Correspondent
Service is Fast, Effi- ,

cie n t and Frie n d ly . A
We would consider it
an honor and privilege
to serve you.

j

IOW A'S FA VO RITE CORRESPONDENT BANK

11801619

and TRUST COMPANY

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Federal Reserve Bank of St. Louis

21

■' - f

. <%■
%

■“ m

ji
Wwrjte.ä

ROy|4D THE ÇAMPFÂE

If you would like extra copies of this picture we will be glad to send them to you with our compliments.—Northwestern Banker.


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Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n ke r, N o v e m b e r , T963

22

Social Security Building, Guatemala City— just ten minutes from a Bank of America branch.

Man-on-the-spot... in Guatemala City. Buying bananas or selling soap
—his advice could mean a good deal. If you’re dealing with firms in France,
get help from our man in Paris. Wherever you do business—London, Lagos
or Los Angeles—BAN K

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N o r t h w e s t e r n Ba n ker, N o ve m b e r, 1963


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Federal Reserve Bank of St. Louis

W illiam F. K elly Discusses

The Outlook
For Banking
Y THE end of this year, if the
trend continues, we will have
had the experience of an up­
ward movement in business and eco­
nomic activity for 34 consecutive
months. This compares favorably, of
course, with other postwar recoveries,
and the question we ask is, how much
longer can we expect the present re­
covery to persist? There are several
factors to suggest that business will
continue to advance, and that we can
expect the commercial banking busi­
ness to operate in 1964 against a back­
ground of good business activity.
These estimates are made without
taking into account the impact of a
tax cut which, as presently contem­
plated, would add something better
than $7 billion to $10 billion to con­
sumer spending. The primary objec­
tive of the tax cut, though, is to pro­
vide incentive for investment for
capital spending. Lower corporate
tax rates would provide a more attrac­
tive climate for investment, and it is
to be hoped that such a tax cut would
stimulate substantial corporate spend­
ing. Such expenditures not only in­
crease our productive capacity, but
they open new job oppotunities.
I am firmly convinced that a sound­
ly structured tax cut, if implemented
within the bounds of fiscal prudence,
can do much for the nation’s long-run
economic growth. And, by fiscal pru­
dence, I mean that Congress and the
President must make every effort to
hold the lid on government spending.
If spending is held constant, over the
next few years, the normal rise in
revenues can be used to pay for the
tax .cut and hasten the day when we
can expect a balanced budget.
We are encouraged to be optimistic
about the level of business activity in

B


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Federal Reserve Bank of St. Louis

1963 and beyond, when in addition to
the tax cut, we can consider the rela­
tive stability that we seem to have
achieved in the area of wages and
prices.
Now, where does the banking busi­
ness stand in relation to this estimate
of the business outlook? Commercial
banks are in good shape. The earn­
ings in 1963 on the whole will be good,
particularly when consideration is
given to the greatly increased expense
arising from the higher rate of inter­
est paid on savings and time deposits.
Capital supporting commercial banks’
activities appears adequate, and it is
being supplemented substantially by
retained earnings. Therefore, it seems
to me that we are in a position to
support and to participate in the
growth that our economy should
achieve in 1964 and succeeding years.
Banking Evolution

As we look ahead for further oppor­
tunities for growth, we do so in ap­
preciation of the fact that our busi­
ness is in the process of evolution.
There have been a number of forces
at work in our business that, in the
long run, will result in significant
changes. These changes will affect
the way we do business and, more
importantly, with whom we do busi­
ness. Commercial banks are finding
corporations and other businesses less
dependent on them for loans and cred­
its. Increased corporate cash flow,
resulting from more liberal deprecia­
tion and investment credits, is reduc­
ing the business requirements for
short- and medium-term bank credits.
This cash flow is not only generat­
ing funds for expansion of American
industry, but it has also built work­
ing capital to a point where many

■ W illiam F. K elly , president, F ir st
P ennsylvania Banking & T rust Com pany,
Philadelphia, and n ew ly elected p resi­
dent o f the A m erican Bankers A ssocia ­
tion, presen ted these view s at the Iow a
Bankers A ssociation Convention late last
month. This was his first address since
his election to the presiden cy o f A .B .A .

corporations can even finance heavy
seasonal requirements with their own
funds. Furthermore, manufacturers
have been relieving distributors and
OUTLOOK FOR BANKING . . .

(Turn to page 54, please)
Northwestern Banker, November, 1963

24

H o w W e tn e re u s e d P r o f it O n
By JOHN F. KEELEY
Vice President
The Drovers National Bank.
Chicago, Illinois

CCORDING to Federal Reserve
statistics as of June 30, 1963,
there was just under $21 bil­
lion of automobile paper outstanding,
of which the commercial banks were
holding $10 y2 billion or 50 per cent.
This was $2y2 billion more than the
$8 billion reported by our friends, the
sales finance companies, the next larg­
est group. If you are concerned with
building a v o lu m e of automobile
financing to the point where it will
make an important contribution to
your bank’s income, you will sooner
or later be faced with a decision: Will
you pursue the business via the socalled direct route—making loans to
your customers to purchase automo­
biles—or will you seek to acquire the
business indirectly—i.e„ through the
automobile dealers in your commu­
nity?

A

Another Decision

Well, if you have determined to
hold with the belief that greater and
more rapid volume lies on the dealer
side of the business, you have another
decision to make: Will you go it on
your own? Will you set up a sales
staff to go out and solicit the business
and service the dealers; render wellrou n d ed credit facilities, including
wholesale; provide a complete insur­
ance program; check the dealer’s in­
ventory, etc.?
Or will you utilize a service organi­
zation highly skilled in every phase of
of the business, to do this for you,
thus making it possible for you to con­
centrate on the extension of credit?
Are you qualified to analyze your com­
petition and keep abreast of rates,
terms, dealers’ reserves, etc., and to
meet that competition head-on? What
will be the cost involved in conducting
the operation aggressively and suc­
cessfully, entirely by your own efforts,
as compared to the cost of the job as
done by the service organization?
N o r t h w e s t e r n B a n ke r, N o v e m b e r , 1963


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Federal Reserve Bank of St. Louis

You have to keep in mind primarily
the personnel cost—supervisory, sales,
outside collection people, etc. — since
other factors — credit investigation,
bookkeeping, inside collection, audit­
ing, etc., will be the same either way.
Diverse Conditions

For obvious reasons I cannot tell
you how to make this decision—there
are too many diverse considerations
involved in different communities and
in different banks. These will vary,
too, depending upon how far your
bank plans to go in the dealer financ­
ing business, the size of your install­
ment operation, your knowledge of
and your ability to handle dealer busi­
ness in volume. In our own case we
had a well set-up department and had
tried to build up a dealer operation
for two or three years. We enjoyed
modest success in what I might call
an amateurish sort of way, but we did
not set the world on fire. Believe me,
the competition — both banks and
finance companies—is rugged. So we
decided to employ a service organiza­
tion four years ago—the Pros—just as
we use legal counsel, tax advisers, etc.,
when needed. We feel now we made
the right decision in selecting Yegen
Associates, Inc., located in Teaneck,
N. J., for three reasons:
1. We look at our retail outstandings
today and the income they pro­
duce.
2. We believe we are better equipped
to compete with national and lo­
cal finance companies, as well as
other banks.
3. We view our successful acquisi­
tion of dealers—our sales, promo­
tion, and merchandising, the deal­
ers’ finance penetration.
All these are the direct result of
working w ith Y egen A ssocia tes.
Founded in 1935 by the late Christian
C. Yegen, a man of unusual ability and
consummate vision, the organization

today has a skilled personnel of 350
and numbers as clients 134 banks with
aggregate retail outstandings of ap­
proximately $512 million and average
wholesale outstandings of $55 million.
Yegen’s publicity states that “in 28
years of operation, with total pur­
chases in excess of $4 billion, the
over-all loss factor of member banks
is just under .005 of 1 per cent—less
than $50 for each $1,000,000 of pur­
chases. They describe the business
they do for banks as being “virtually
loss free.” Yegen says again, “We
p e r fo r m all services outside the
bank” ; the bank maintains complete
control over internal operations, par­
ticularly the extension of credit. Let
me repeat, the final decision in grant­
ing or declining wholesale and retail
credit risks solely with the bank.
Let us briefly explore five steps for
c o n tr o l of and protection against
losses.
As far as wholesale or floor
plan credit is concerned, the
protection is mainly two-fold:
Frequent car checks and in­
surance coverage against dealer fraud.
The first is a must and is familiar to
most of you. The insurance protec­
tion, evidenced by individual policies
issued to the banks, affords coverage
against dealer losses up to $100,000 as
follows:
1. The Wholesale Loss Reserve—the
Yegen Plan provides this reserve,
which they call the “Wholesale
Escrow Fund” by joint contribu­
tions by the bank and Yegen
of $2 per retail deal purchased.
This builds up to $10,000, when
contributions cease. Any whole­
sale loss up to $10,000 is charged
against this reserve. Should the
Wholesale Escrow Fund be re­
duced below $10,000 by incurred
losses, the bank and Yegen resome the joint contribution until
it is restored.

25

A u t o Êa u t n s

2. Integrity Insurance Company —

this subsidiary of Yegen Associ­
ates Inc., insures the bank against
wholesale loss up to $50,000 on a
$10,000 deductible basis, provided
by the Wholesale Escrow Fund
already noted.
3. Security Mutual Casualty Compa­
ny provides excess coverage up to

>

$100,000 on a $50,000 deductible
basis. (Escrow Fund & Integ­
rity.)
The very nominal premiums on the
Integrity Insurance policy are shared
jointly by the bank and Yegen, those
of Security Mutual are borne by
Yegen alone.
As an indication of Yegen’s con­
trol aspect of wholesale financing,
they report that there has not been a
single loss charged to Integrity since
1953, which is obviously also true of
Security Mutual. What losses did oc­
cur were covered by the wholesale es­
crow fund. With crossed fingers may
I say that at Drovers National Bank
our original wholesale reserve is still
intact.
Looking at retail losses, and
you all know these are a
necessary ingredient in the
finance business, regardless
by Yegen or anybody else, provi­
sion for these is made by what
Yegen terms the “Non-Recourse Loss
Fund” or the “W.O.R. Fund” (which
obviously stands for “Without Re­
course” ). Incidentally, I know that
some of our finance companies oper­
ating in your area purchase paper on
a full or partial resource or on a re­
purchase basis. I do not know what
the proportions may be but this strikes
me as being a plus benefit assuming
that the dealers represent some net
worth. The Chicago market is essen­
tially a non-recourse one as you prob­
ably know.
Under Yegen’s W.O.R. concept the
retail loss reserve is created and


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Federal Reserve Bank of St. Louis

maintained by allocations into the
fund made from the discount or
finance charges accruing on individual
retail transactions as follows:
New cars — one-half per cent per
year of C.U.B.
One year old cars—three-fourths per
cent per year of C.U.B.
Two years and older—one per cent
per year of C.U.B.
Thus, if you finance $2,000 on a
new car for 36 months the credit to
the W.O.R. Fund is 1% of $2,000, or
$30. This is credited at the same time
credit is passed to unearned discount.
The desired goal in the W.O.R. Fund
is 2 per cent of retail outstandings.
In our case, after four years of opera­
tion, we have accumulated a reserve
of $150,000 or IV2 per cent. After tak­
ing care of all retail losses incurred
during the period, mark you, this re­
serve is over and above and in addi­
tion to the bad debt reserve normally
maintained by banks. It is the
Yegen psychology that such provision
for losses removes the sting ordinarily
associated with charge-offs handled in
the customary manner. Sneaky? No!
Perhaps you might be interested in
our loss to liquidation experience on
Yegen business thus far:

1960
1961
1962
1963

Drovers Industry
Nat. Composite
1.71%
................... . . . 1.19%
1.73%
.............................. 91%
1.28%
.............................. 72%
N.A.
(6 mos.) . ........... 86%

If these appear high in comparison
with experience on direct auto paper
you must bear in mind that this is a
different business. Actually the com­
parison with direct paper is not a
valid one; since you are actively com­
peting with the sales finance compa­
nies your comparison to be realistic
must be with their loss statistics. Re­
member that your dealer finance oper­
ation is designed, among other things,
to help the dealer sell automobiles;
failing this it will come to naught.
Your efforts to carry on this business
without losses would be similar to a
man’s desire to live forever.

As a sidelight on the subject of
losses it is Yegen’s contention that
because of the manner in which the
W.O.R. Fund is set up and because
losses are not charged against the
bank’s ordinary bad debt reserve, this
business, as far as the bank is con­
cerned, is “virtually loss free.”
To me one of the real prob­
lems that confronts a bank
v e n tu r in g in to the auto
financing business on a vol­
ume basis and one of the areas in
which we find it difficult to compete
with the finance companies is the abil­
ity to provide a satisfactory insurance
plan for the dealer and his custom­
ers. I refer here to physical damage
coverage on cars sold by the dealer
and financed by the bank. Under
Yegen’s Bank-Dealer Plan such prob­
lems are eliminated; the dealer sells
the insurance and includes the premi­
ums in the customer’s finance con­
tract. Your dealer is furnished with
all pertinent data, premiums are in­
cluded in rate charts supplied by
Yegen. His commissions are paid him
along with his finance reserves and
the insurance flows through Yegen’s
office to responsible carriers.
From the standpoint of the custom­
er as well as the bank, coverage is
automatic when the car leaves the
dealer’s salesroom. Yegen adjusts
the loss in the event of a claim and
refers the repairs back to the origi­
nating dealer, which, of course, means
more profitable business for him.
What I have said about physical dam­
age insurance is equally true of credit
life coverage. And I should stress
here that while Yegen makes a com­
plete insurance package available un­
der the plan there is no compulsion
about it; the car buyer always retains
the option of handling his own insur­
ance.
In promoting your dealer
program, Yegen personnel,
all of whom incidentally are
on Yegen’s payroll, not the
INCREASED PROFIT . . .

(Turn to page 48, please)

Auto loan business produced a t Drovers N ational Bank
during past four ye ars.
R E T A IL
V olum e

1959
1960
1961
1962
1963

D ea ls

50 3.000
5 ,8 5 4 .0 0 0
6 ,6 5 5 ,0 0 0
7 ,5 3 8 ,0 0 0
6 ,0 9 0 ,0 0 0

252
2,91 9
3,321
3,7 3 7
3,0 0 5

$ 2 6 ,6 4 0 ,0 0 0

13,234

(5 M onths) ................ _ . . $
............................................ _____
............................................_____
...........................................____
(7 M onths) ................ . . .

O u tstan d in g s
$
4 6 6,000
4 ,9 6 8 ,0 0 0
7 ,1 8 9 ,0 0 0
8 ,2 2 6 ,0 0 0
1 0 ,0 0 0 ,0 0 0

—

In com e

$

5,000
126,000
357,000
4 4 9,000
306,000

$ 1 ,2 4 3 ,0 0 0 *

*D o e s not include W .O .R . Fund of $ 1 50,000 a ft e r de d u ctin g all losses and repo ssession expen ses.
W H O LESA LE
Volum e

4 Y e a rs .................................. - ..$ 3 1 ,1 0 0 ,0 0 0
T O T A L ....................................... ..$ 5 7 ,7 4 0 ,0 0 0

O u tstandings

$ 1 ,1 3 7 ,0 0 0
$ 1 1 ,1 3 7 ,0 0 0

In com e

$ 2 1 6,000
$ 1 ,4 5 9 ,0 0 0

Northwestern Banker, November, 1963

26

W liat City Hanks W an t frinii
Tlie \atioii*§ Large§t Hanks
A NORTHWESTERN BANKER Survey

T THE same time the survey in
the previous issue was being
made among country banks to
determine “How the Banker Chooses
His Correspondent Bank,” the N orth­
western B anker also contacted city
correspondent banks in a number of
larger cities in the midwest to query
them on their relationships with their
correspondent banks — the nation’s
largest banks.
Replies were received from 20 of the
approximately 40 banks which re­
ceived questionnaires. Eight of these

A

respondents are in the $50 to $100 mil­
lion deposit range, eight are in the
$101 to $200 million range, and three
are in the $201 to $500 million range.
One bank did not list its size.
The first question on this survey
was the same as the one asked coun­
try banks: “For what reasons did you
choose your
banks?”

present correspondent

Question No. 2 asked: “What special
service (s) of any of your correspond­
ent banks is especially helpful to your
hank or any of your important cus­

Chart No. 1 — For What Reasons Did You Choose Your Present
Correspondent Banks?
Reputation for Service
Cooperation on Excess Loans

Location

tomers?” The city bankers were asked
to write in their replies and Chart No.
2 lists these answers, along with the
figure showing the number of times
each service was mentioned.
$20l-$500 million: “ Market informa­
tion.”
$101-$200 million: “ City bankers call­
ing here are helpful to us in direct re­
lationship to their knowledge of the
money market, their bank’s invest­
ment policies, and the financial as­
pects of foreign trade.”
$50-$100 million: “We want them to
have banking knowledge.”
$50-$100 million: “We like to see
someone who has a knowledge of the
business and can discuss intelligently
loan problems or bank problems. We
are not particularly impressed by the
glad-hander and the back-slapper who
has no banking knowledge.”
$101-$200 million: “Discussion of
new developments in marketing, train­
ing and extension of credit.”
Question No. 7 asked, “What do you
think is the most significant change in
correspondent hank service in the
past 10 years?”

F a cilitie s
To Serve a C e rta in
Custom er of the Bank
Size
Salesm anship of Its
Representatives
Friendship W ith Someone
in the Bank
O ther
POIN TS

Northwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

20

40

60

80 100 120 140 160 180 200

Expansion of services, closer work­
ing relationships, greater loan partici­
pation and business rather than friend­
ship approach seem to highlight the
answers noted here:
$101-$200 million: “Greater willing­
ness to be of assistance in such things
as credit over-lines and investment
counsel rather than just handling
transit letters.”
$101-$200 million: “Attempt to ren­
der service in many fields, such as:
marketing, training, overlines, auto­
mation.”

27
$201-$500 million: “ More frequent
visitations and more offers to partici­
pate in credits.”
$101-$200 million: “Their ‘service’ is
less social and more ‘business’.”
$101 -$200 million: “A closer relation­
ship has developed. Correspondent
banks are sincere in the desire to be
helpful. Close contact is maintained
with their customers.”
$50-$100 million: “The most signifi­
cant change is the fact that big city
correspondents turn to us for deposits
on the one hand, and on the other
hand we lose deposits and balances to
them through their efforts of concen­
trating funds in central banking cen­
ters and in calling on our local cus­
tomers with the idea in mind of estab­
lishing a banking relationship in the
bigger centers.
“We have a procedure whereby ev­
ery six months all of our big city cor­
respondents are rated by each depart­
mental manager in their meeting. The
target balance that we will aim at
maintaining in each bank is set in a

Chart No. 2 — What Special
Service(s) of Any of Your
Correspondent Banks is Espe­
cially Helpful to Your Bank or
Any of Your Important Cus­
tomers?
(S h o w in g s e rv ic e s liste d and the number
o f tim es e ach w a s m en tio n ed .)

C a rryin g overlines .................................9
Tran sit handling ......................................7
New business leads ...............................7
Bond and investm ent h e l p ................7
Provision for "Fed eral funds" . . . . 4
Safekeeping

securities

O p eratio ns ideas

....................... 4

................................... 4

Foreign exchange ................................... 3
Transfers of money .............................. 3
Personnel training inform ation

...2

Aiding our custom ers to
get new business ...............................2
M arketing inform ation on
selling bank se rv ice s ....................... 1
Public relations and
promotion assista n ce

.....................1

general discussion of the principal of­
ficers of this bank. In this way, we
think we do not fall into the position
of having a correspondent relationship
dependent upon the personal relation­
ship between an officer here and one
in some big city bank.
“ The banks in the smaller communi­
ties today are looking for correspond­
ents that will be loyal and genuinely
helpful. Business is changing so that
the correspondent bank relationship is
not as dependent on the social side of
the business as it has been in previous
years.”— End.

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Federal Reserve Bank of St. Louis

This 1$ our way of saying THANK YOU for opening
an account with us. Please experience the safety

THANK

and convenience of safe deposit protection with
our compliments.
A safe has been reserved for you [n our vaults. It is a
pleasure to offer its use for three full months without
charge. If you wish to give up the safe at the end of the
three month period, you merely return the keys and
sign a cancellation of the service. However, if you wish
to continue to protect your valuables, the safe will
then be available to you at a modest rental.
Please present the Depositor’s Certificate to our
Safe Deposit Department at your convenience. Tha
enclosed Safe Deposit Box Record will help you think
of the things you would like to protect

FIRST

N A T IO N A L

BANK

OF

R O C H E S T E R .

M IN N E S O T A

M1MBCR rtD tnAl. DI * 0 «!T INSUBANCt COBBOBATION

How O ne B ank B e n t«
Snfe D eposit B oxe«
deposit boxes are just one of
SAFE
the many services banks provide;
and it can be a profitable service if
effectively merchandised.
One bank that is actively going
after the safe deposit box customer is
the First National Bank of Rochester,
Minn. Perhaps the most effective plan
used to attract customers to this bank
service has been a “depositor’s cer­
tificate” which entitles depositors to
use a safe deposit box for three
months without cost. A reproduction
of the certificate and its envelope is
shown above.
Stanley M. Morris, assistant cash­
ier and manager of the safe deposit
department of the bank, reports that
the bank has used these certificates
for the past year and a half.
The certificates are given to new
customers when they open checking
accounts, and to other persons the
bank wishes to introduce to the safe
deposit box service. Each certificate
is enclosed in a special envelope which
serves as a “thank you” note for open­
ing an account and explains that “a
safe has been reserved for you in our
vaults. It is a pleasure to offer its
use for three full months without
charge. If you wish to give up the
safe deposit box at the end of the
three months period, you merely re­
turn the keys and sign a cancellation
of service. However, if you wish to
continue to protect your valuables, the
safe will then be available at a modest
rental.”
In addition to the certificates, a
prospective box customer is given an
inventory booklet. This booklet not

only suggests what the customer can
put in the safe deposit box, but also
provides an accurate record of con­
tents.
Mr. Morris states, “Putting some­
thing material like a certificate or
booklet into the hands of a customer
is much more substantial than just
asking if he needs a safe deposit box.
The material can be looked at when
the customer gets home, while the
direct approach of a question is
promptly forgotten.”
The use of the customer certificate
and the booklet has increased the to­
tal number of boxes leased by about
5 per cent.
Another method of promoting the
rental of safe deposit boxes at the
Rochester bank is conducted during
the city’s “Dollar Days” sales which
take place each spring and fall. Dur­
ing these events, boxes are leased for
$1 per year.
Mr. Morris reports, “We have had
fairly good luck on these sale days,
renting from 13 to as high as 26
boxes.”
Both of these promotions have re­
sulted in high retention once a box
is leased. Mr. Morris says the bank
has a retention of more than 90 per
cent of the boxes rented as a result
of these ideas.
Mr. Morris currently is president of
the South Central Minnesota Safe De­
posit Association, which is comprised
of 21 banks. Also, he was appointed
recently as regional chairman of the
American Safe Deposit Association for
the four states of Minnesota, North
Dakota, South Dakota and Montana.
Northwestern Banker, November, Î963

H a n k e rs Y o u K n o te

Rudolph A . Peterson
President
Bank of America JST&SA
San Francisco, Calif.

HEN Rudolph A. Peterson was bom December 6,
1904, the multi-billion dollar bank he was to head
was six weeks old. It had on the books in its
small office in San Francisco’s North Beach section de­
posits totaling only $68,761. When Mr. Peterson took
office November 1 as president, Bank of America’s de­
posits exceeded $12 billion and its resources totaled
nearly $14 billion.
Mr. Peterson succeeds S. Clark Beise, who has retired
as president to replace former President Carl F. Wente
as chairman of the bank’s executive committee. Mr.
Wente becomes honorary chairman of the board.
The new president and chief executive officer of the
Bank of America was born in the rural community of
Svenljunga in Sweden. He was brought to California
when he was two years old and spent his boyhood in
Hilmar, then a community of Swedish immigrant farm­
ers near Turlock, California.
While still in high school, he set his sights upon a ca­
reer in the financial world, and when he entered the
University of California at Berkeley, money and banking
was his major. He worked at various jobs to put himself
through college, receiving a Bachelor of Science degree
in 1925.
His first job in his chosen profession was as a field
representative for Commercial Credit Company. He ad­
vanced rapidly to assistant manager in San Francisco.
Mr. Peterson next was promoted to vice president and
general manager in Mexico City, arriving just in time to
oversee Commercial Credit’s interests there as Mexico
went off the gold standard, touching off drastic re-evaluation and renegotiation of all business outstanding. His
experience there led him to be chosen for the same task
later when Cuba’s economy crumbled.
During the difficult depression period of the 1930’s in
the United States, he was moved into the key position
of division operations manager with headquarters in
Chicago.
It was at this time that Mario Giannini, president of
Bank of America, conceived the idea of large scale bank
installment lending to consumers and small businesses.

W

N o r th w e s t e r n Ba n ker, N o v e m b e r , 1963


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

Mr. Peterson, with his background in installment financ­
ing, was a natural choice to assist the bank with its
development. He joined the bank in 1936, starting as
district manager in Fresno, where he helped pioneer the
innovation in the rich agricultural section of California.
Five years later, he was promoted to vice president at
the head office in San Francisco, having statewide respon­
sibility in the lending field.
In 1946, at the bank’s request, Mr. Peterson joined
Transamerica Corporation as president of Allied Build­
ing Credits, a subsidiary of that organization. Six years
later he was appointed Transamerica vice president in
charge of the corporation’s banking interests in five west­
ern states.
Following the separation of Transamrica from most of
its banking interests. Mr. Peterson joined the Bank of
Hawaii in 1955 and became president early the following
year.
He instituted a vigorous program under which Bank
of Hawaii became one of the first banks to enter the
credit card field, conducted an education program in bank
use for Hawaii’s minority groups and stressed the per­
sonal approach to business development and customer
relations.
Under his direction, Bank of Hawaii’s resources grew
in five years from 155th to 92nd in the nation, the bank
added 22 branches and more than trebled its earnings.
Mr. Peterson is also credited with stimulating nation­
wide interest in the Hawaiian economy. At his direction,
the bank began publishing periodic economic bulletins
highlighting the Islands’ progress and potential.
During his residence in Hawaii, he served as a director
of Alexander & Baldwin, Ltd., Oahu Railway and Land
Company, Sheraton Hawaii Corporation and Alexander
Young Company, Ltd.
In 1961, Bank of America invited Mr. Peterson to fill
the major executive position of vice chairman of the
board of directors. Subsequently, the board of directors
conferred upon him responsibility for the general manBANKERS YOU KNOW . . .

(Turn to page 39, please)

29

m

P u b lie E d u c a tio n

%

By

Fi lin ni*«* F o rm ili

%%

FRANCES BA K ER
Assistant Cashier
1st ISational Bank
Minneapolis
Minnesota

%

%
%
%

How one bank uses educational
forums to inform the public of
the many services available in
commercial banks.

%

original purpose in starting
OURfinance
forums was to increase

At our bank, for our Women’s
Finance Forum, we offer a series of
the economic literacy of the distaff five lectures on five successive Mon­
side of our society, and our Men’s days. We have identical classes at
Forums were added later by popular
10:00 a. m. and 7:30 p.m. The lecture
request.
lasts for 55 minutes followed by a fiveEducation has been defined by Sir minute intermission when those at­
Joseph Stamp as “The inculcation of tending write any questions they may
the incomprehensible into the ignor­ have. These are collected by the ush­
ant by the incompetent.” Possibly the ers and the speaker spends the next
“ignorant” is correct. This is often half hour answering the questions.
called a nation of economic illiterates. The classes are open to the public,
The subjects covered are not “incom­ but registration is required and ad­
prehensible” when properly present­ mittance is by ticket only. The regis­
ed, and our speakers are anything but trant selects the morning or evening
“ incompetent.” They are all experts group. Various phases of investment
in their field, good speakers, and we and money management are covered.
are willing to pay the price as we
Our Forums originated in 1949, and
feel this is very important.
we now have completed our 16th wom­
Publics to be rea ch e d th rou gh
en’s forum. During this time over
finance forums are almost unlimited. 10,000 women have attended. They
We attempt to reach the women, the have proven very popular, and by the
men, brides-to-be, and teenagers, who time the forum starts each year we
we consider to be the leaders of to­ have a waiting list of 150 to 200 peo­
morrow. Other banks have had finance ple for the following year. These
forums directed toward young cou­ meetings are made known to the pub­
ples, farm families, doctors and many lic through statement stuffers, radio
other specialized groups. The Chase announcements, and a small newspa­
Manhattan has even offered a forum per ad.
for “Women Financial Analysts.”
When the idea was first developed
The format used by different banks we held a series of luncheon meetings
has wide variety. Some are a series consisting of 10 or 12 women leaders
of meetings and some are a “ one shot” in the community covering club wom­
deal. Some serve refreshments, some en, society women, business women,
serve lunch or dinner, and some are etc., and these women helped us work
strictly business. The Continental Illi­ out our original program and format.
nois National Bank of Chicago, from Since that time it has been changed
time to time, has a very elaborate very little. Many of our speakers are
luncheon and program called “Fash­ engaged year after year, but the attor­
ions in Finance.”
ney who speaks on “Wills and Es­

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

tates” and the broker who speaks on
“ Investing in Stocks and Bonds” are
rotated frequently among our good
customers. The subjects covered in
our most recent series are:
Life Insurance and Social Security
by Charles E. Gaines, C.L.U., director,
Institute of In s u ra n ce Marketing,
Southern Methodist University; In­
vesting in Income Real Estate by Dar­
rel M. Holt, vice president, The Towle
Company; Self-Confidence: The Basis
of All Family Financial Planning, Dr.
C. Gilbert Wrenn, Professor of Edu­
cational P sy c h o lo g y , University of
Minnesota; Estate Planning by Ever­
ett A. Drake, Faegre & Benson; In­
vesting in Stocks and Bonds by Harry
G. Edelstein, Francis I. duPont &
Company.
By popular request we now offer a
Men’s Finance Forum each winter
with the same format, the same topics,
and the same speakers, but the sub­
jects are offered with a slightly dif­
ferent slant.
For the past three years we have
offered a Brides’ Forum and Style
Show. Girls whose engagements have
been announced in the Minneapolis
paper are sent invitations, and there
is also a public announcement made
by way of a newspaper ad. Working
in cooperation with Minneapolis’ larg­
est department store, we arrange a
one evening forum. The store puts on
FINANCE FORUMS . . .

(Turn to page 43, please)
Northwestern Banker, November, 1963

30

Creating A Favorable
i ,i . ;

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. . . i i . : . ..,::ii;

im age
In A Commercial Bank

R. WEBSTER defines image
as “a mental picture, concep­
tion or idea.” I would like for
us to think about the collective im­
age of banking as well as the image
of our own individual banks. Robert
Louis Stevenson said,. “ Everybody
soon or late sits down to his banquet
of consequences.” The image that
others have of the banking business
and of our banks is but the conse­
quence of our action, attitudes and
applications of aptitudes.
Every bank has an image whether
or not planned. It can be excellent,
good, mediocre or bad. Management
more than anything else determines
the image classification of a bank.
The Oklahoma Bankers Association
made a survey of 13 high schools with
approximately 2,000 students having
been contacted. Some of the results
were as follows:
■ 1,672 th o u g h t b a n k e rs were
friendly; 313 lukewarm.
■ 1,086 thought banks had the wel­
fare of their customers in mind and
593 thought they worked for the wel­
fare of their communities.
■ Banking as a vocation was chosen
by 60 students as first choice out of
881.
■ 1,290 students believed that the
Federal government owned our na­
tional banks and 59 believed the state
governments owned them. Only 273
thought they were owned by indi­
vidual stockholders.
■ 119 students thought state banks
were owned by the Federal govern­
ments and 531 by the state governement. Only 292 thought they were
owned by individual stockholders.
■ 713 out of 2,058 thought the Fed­
eral government should own the

M

Northwestern
Banker, November, 1963
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

banks and 288 thought the state
should own them.
From the results of this survey, we
conclude that an educational program
in the high schools is badly needed,
and there is no better place to build
the correct image of a bank than with
our high school students in that they
are the leaders of tomorrow.
Help Public

Today’s bank is in business to help
the American public. Most of the big
banks which a generation ago did
almost entirely a “wholesale” busiB y B E N C. W O O T E N
Chairman of the Board
First National Bank
Dallas, Texas

ness—dealings with other banks and
large borrowers — now offer many
services to the small customer. They
seek his checking account, his sav­
ings, his loan business. They greet
him pleasantly when he comes in:
their officers often call him by his
first name and he finds himself in
bright, relaxing surroundings. Gone
are the mausoleums of finance. The
banker, if ever, is no longer a finan­
cial policeman.
Some of the best bankers in Amer­
ica are running banks in small towns.
Good banks do not just happen—they
are operated. One might ask, “How
does a bank create a good image?”
1.
2.
3.
4.

By rendering a helpful service.
By filling an economic need.
By advancing sound credits.
By seeking out opportunities to
serve in every legitimate way.

5. By properly discharging civic
responsibilities.
6. By making a profit.
7. By taking part in governmental
affairs.
8. By arranging for able succes­
sion.

Back of every good bank are the
men at its helm, and back of its men
are their thoughts, integrity and per­
sonality. Every business is a living
reflection of the principles, policies
and standards of its management.
Conditions are ever changing—new
machinery, new methods and new
materials. Banking is not static.
Change is inevitable—and most lead­
ers of the banking business are co­
operating with these changes and
taking full advantage of them. Some
bring about changes while others
struggle to keep their business the
same as yesteryear. Businessmen
who endeavor to keep their business
the same year after year like to think
of themselves as conservatives. A
conservative has been defined as a
person who believes that nothing
should ever be done for the first time.
I like the term, “aggressively con­
servative.” An aggressively conservatime man is one who has the forti­
tude and the courage to stand for and
promote the principles that will serve
his area and at the same time promote
the tenets of sound operation.
Think Positive

There are many different kinds of
thinking. There is such a thing as
positive thinking. It has a great
power. One writer states that much
of the best of life is lost by failure
IMAGE . . .

(Turn to page 32, please)

31

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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1963

32

T THE close of the 1962-63 scho­
lastic year in June, pupils of 17,134 public and parochial schools had
a total of $209,206,140 on deposit in
bank-school savings accounts.
This is just one indication of the
tremendous amount of money being
handled by the younger generation.
In addition, habits formed by these
young people will be m a in ta in ed
throughout life.
The education of this segment of
the population in commercial banking
is becoming increasingly important
and now the American Bankers Asso­
ciation has developed several farreaching programs to help accomplish
this task.
In connection with the centennial
of the dual system of banking, the
A.B.A. has released a “Centennial
School Relations Kit.”
The kit, which is a cooperative ef­
fort of the Association’s centennial
commission, public relations commit­
tee and banking education committee,
contains samples of material that may
be purchased by banks in quantity for
use in local schools, and manuals to
aid banks in planning programs to be
carried out in c o o p e r a t i o n with
schools.
Included in the kit for use in the
bank is a booklet entitled “Tomor­
row’s Customer Today,” a how-to-do-it
manual on relations with schools; an
“A.B.A. Film Guide,” l is t in g films
available for purchase, rental, or loan
on such subjects as commercial bank­
ing, credit, public relations, trusts, and
related subjects. There also is a list
of materials on money and banking
for use in elementary and secondary
schools, including those of state bank­
ers associations, U. S. government
publications, Federal Reserve book­
lets and publications, and the pulications of private firms.
Another item of interest to bankers
is Banking Education News, which
reports on educational developments
relating to the field of banking.
Additional contents include two new
publications from the A.B.A. They are
The Story of American Banking, for

A

IMAGE . . .

(Continued from page 30)
simply to seek out the answer to our
problems on the basis of positive ap­
proach. By being positive, one can
win victories; and by being negative,
we get only the leavings of life . . .
the crumbs from life’s banquet table.
Let’s think up and out and our banks
will grow up and out.
Everyone in the operation depart­
ment is in the image building depart­
Northwestern
Banker, November, 7963
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A.B.A. Announces

N ew 3iateria h i to A ttr a c t
T h e

Y o u n t f e r

t i e a e r a t i o n

senior high school students, and Vinny
and Billy, the Boys with a Piggy
Bank, a picture story book for boys
and girls in the lower elementary
grades. Both of these are available in
quantity for distribution to school stu­
dents. They need not be obtained as
part of the over-all kit, but can be pur­
chased separately. Single copies of the
history book are sold to A.B.A. mem­
ber banks at 30 cents each and 18
cents for quantities of 25 to 999. The
picture book is priced at 12 cents each
and 11 cents for copies between 250
and 499.
The Story of American Banking is
especially designed to fill the gaps in
high school history in explaining the
role of money and banking in the de­
velopment of this country. The book­
let tells how banking developed in the

United States and how the industry
contributed to economic growth.
Vinny and Billy, the Boys with a
Piggy Bank, was developed to meet
the growing demand for bank educa­
tional aids for the lower elementary
school level. The booklet introduces
youngsters to some elementary con­
cepts of banking, such as: a bank is
a place to save; savings earn interest;
and banks put money deposited with
them to work by making loans. The
booklet is colorfully illustrated by
Marilyn Shea, and was produced in
consultation with Dr. Leland B. Ja­
cobs, professor of education, Teachers
College, Columbia University, New
York City.
The A.B.A. Banking Education Com­
mittee will provide teachers with sin­
gle complimentary copies on request.

ment. In many instances, a teller or
bookkeeper is the only contact a cus­
tomer has with the bank and, there­
fore, the entire bank is judged by
the attitude and efficiency of the teller
or bookkeeper.
The financial caravan is moving
fast, and our shareholders and cus­
tomers expect us to keep our banks
in the front line. We can be con­
servative and constructive while keep­
ing in the forefront the fact that our

first duty is to keep our banks un­
questionably sound, and in addition,
we must earn profits for our share­
holders.
Our banks can be sound, profitable,
human, warm-hearted and progres­
sive all at the same time. One might
ask—How can this be done? We
would direct your attention to a few
IMAGE . . .

(Turn to page 96, please)

1

33

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The Foundation for Commercial Banks needs you as a member. It
needs your help in getting other members. It needs your financial
assistance. And, just as important, the Foundation needs your sup­
port at the community level. Promote the phrase “ Full Service
Bank.” Use the symbol. Sell the benefits of a Full Service Bank in
your advertising. Only your efforts, added to the Foundation’s own
program, can drive home the many advantages of doing business with
a Commercial Bank. For full details, write: The Foundation
for Commercial Banks, Philadelphia, 1.

C O N T IN E N T A L
AND

TRUST

N A T IO N A L

BAN K

C O M P A N Y O F C H IC A G O

M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N


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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1963

34

-V.1SS it T old :

W ith F ed era l

HE full slate of Association offi­ Wis., as chaiman of the Association’s
cers and committee chairmen for advisory council. Mr. Pauls, as chair­
the coming year were announced lastman of the body directly representing
month by C. V. Pierce, newly elected NASSB’s 3,658 associate member statepresident of the National Association chartered banks, also serves as chair­
of Supervisors of State Banks.
man of the association-sponsored state
The elections of Mr. Pierce and bank evaluation committee.
First Vice President Charles R. How­
Appointed as vice chairman of the
ell were announced at the close of the advisory council is Robert A. Duncan,
62nd annual convention, which was president, Peninsula Bank & Trust
held recently in Williamsburg, Va. Company, Williamsburg.
Mr. Pierce is South Carolina’s chief
Other council members will be
examiner, and Mr. Howell is New named at a later date.
Jersey commissioner of banking and
The association’s executive commit­
insurance.
tee is comprised of NASSB officers, a
The new second vice president is chairman, vice chairman and 12 su­
William E. Nuesse, commissioner of pervisors appointed from each of the
banks, Wisconsin. Mr. Nuesse is also 12 FDIC districts. Those from the
chairman of the committee on state N orthwestern B anker area are:
banking laws and supervisory proce­
District Eight: Clay W. Stafford,
dures.
superintendent of banking, Iowa.
Harrison S. King, New Hampshire
District Nine: Mr. Bryan, Minne­
bank commissioner, was elected third
sota.
vice president.
District Ten: Frank E. Goldy, state
During the convention, it was an­
nounced that Secretary-Treasurer Ed­ bank commissioner, Colorado.
Mr. Pierce also confirmed an earlier
ward H. Leete was relinquishing his
office after 13 years as an NASSB offi­ announcement that the 1964 NASSB
cial. Mr. Leete, who soon is expected convention will be held in Puerto
to retire as New York deputy superin­ Rico, October 20-23. A year later the
tendent of banks, was named secre­ association will convene in Detroit.
tary-treasurer emeritus in recognition
Retiring President Hartwell said in
of his many contributions to the asso­ his address to the membership that
ciation.
the branch banking controversy has
His on-the-job successor is Raymond been responsible for the growth of
H. Wesner, assistant deputy commis­ what he termed “an unreal feud be­
sioner of banking, New Jersey.
tween state and national bankers.”
Chairman of the executive commit­ He said this is not such a feud but
tee, the association’s principal govern­ rather the “real conflict is between
ing body, is immediate past President big and little . . . between the city
Norris E. Hartwell, Wyoming state and country banks. The big banks
examiner. Vice chairman is Mr. How­ want to expand; many, many small
banks do not, and fear deep within
ell.
Other committee chairmen named themselves big bank growth.”
by Mr. Pierce are:
He predicted that banking’s real
Legislative Committee — Randolph competitors, savings and loan associa­
Hughes, state bank commissioner, Del­ tions and credit unions, would benefit
most from such a growing rift, and
aware.
Convention Committee—J. V. Chap­ that a widening split could lead to a
man, deputy commissioner of banking, nationalized banking system.
U. S. Chamber of Commerce Presi­
Florida.
Specialized Training Committee — dent Edwin P. Neilan, president of the
Gerald L. Bryan, commissioner of Bank of Delaware, Wilmington, called
for transferring of the functions of
banks, Minnesota.
the Comptroller of the Currency to
Committee on Committees—Marvin the Federal Reserve System. He said
A. Bryan, superintendent of banks, there should be two classes of banks,
Tennessee.
for supervision purposes; those who
Inter-Agency and Uniform Reports belong to the Federal Reserve Sys­
Committee—John D. Hospelhorn, dep­ tem, and those who are solely mem­
uty bank commissioner, Maryland.
bers of FDIC. The former should be
Mr. Pierce also announced the re­ examined as a function of the Federal
appointment of Dayton F. Pauls, pres­ Reserve Board, he said, and the latter
ident, Citizens Bank of Sheboygan, by the FDIC.

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Northwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

M e r p C om
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35

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other Christmas Club services and
answer any questions.

C o r p o r a tio n

230 Park Avenue, New York, N. Y.
Founded by Herbert F. Rawll

Builds Character • Builds Savings • Builds Business for Financial Institutions


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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1963

36

A .H .A . A u tom a tion t o n te r eu re
To
F e a t u r e It W o rk sh o p s,
NFORMATION which will prove of services, on-line savings accounting,
value to operating officers in banks proof and transit automation, data
that are now automated, banks con­ transmission and new equipment de­
sidering automation and banks with­ velopments.
out automation will be provided in
Major Addresses
the program of the First National
The
seven
major addresses will be
Automation Conference to be held at
the La Salle Hotel in Chicago, Novem­ given by: Joseph Walker Barr, diber 13-15. An advance program for rector-designate, Federal Deposit In­
the three days has been announced surance Corporation, Washington, D.
by Robert K. Wilmouth, conference C.; Dale L. Reistad, director of auto­
chairman and vice president, The mation and market research, A.B.A.;
William F. Kelly, newly elected pres­
First National Bank of Chicago.
ident of the A.B.A. and who is pres­
A workshop atmosphere will pre­
ident, the First Pennsylvania Bank­
vail for the three days of the meet­
ing & Trust C om pany, Philadel­
ing, with a wide variety of automa­
phia; John Mayer, president, Mellon
tion topics covered in speeches and
National Bank & Trust Company,
panels by 50 leading bankers experi­
Pittsburgh; John A. Mattmiller, vice
enced in automation. A special fea­
president, The Northern Trust Com­
ture will be the afternoon session on
pany, Chicago; Merle D. Courson, vice
Friday, November 15, devoted to a
president, The First National Bank of
number of simultaneous special-inter­ San Jose; and Professor C. Northcote
est group discussions. The group lead­
P a rk in so n , author
(“ Parkinson’s
ers are specialists, with broad ex­
Law,” “ In-Laws and Outlaws” and
perience in such areas as cooperative other works) and lecturer.
data processing, personal and corpo­
Panel discussions will be spread
rate trust automation, new customer
through all of the sessions. On

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Wednesday and Thursday afternoons,
participants will be divided into two
concurrent groups. Group I will con­
sist of representatives from banks
with automated systems already in­
stalled, banks in the process of in­
stalling automation, and banks with
new equipment on order. Group II
will comprise banks contemplating
automation, those serviced by cooper­
atives, service bureaus, or correspond­
ent banks, and those serving other
banks.
Panel Subjects
The subjects to be covered by the
panels on Wednesday will include
those of wide interest among bank
operations executives, such as “The
Common M agazine Language Pro­
gram” and “Getting Better Mileage
Out of Your Computer” (Group I),
and “Guidelines for Evaluating Auto­
mation in the Small Bank” (Group
II).
On Thursday morning, the general
session will include a discussion of
“ Supervisory Aspects of Automation,”
with speakers from the office of the
Comptroller of the Currency, the
Federal Reserve System, the New
York State Banking Department, and
a large correspondent bank.
During the afternoon panel ses­
sions, Group I will discuss “ Proof and
Transit Automation” and “Guidelines
for Banks Offering New Automated
Services.” Group II will consider
“ Evaluating the Various Approaches
to Automation.”
The Friday morning panel will be
devoted to the “Transmission of Data”
and will be led by experienced bank­
ers, as well as representatives of IT &
T Communication Systems, Incorpo­
rated, and the American Telephone
and Telegraph Company.

Heads Charitable Drive
Samuel H. Woolley, president of The
Bank of New York, has been named
general chairman for the 1964 March
of Dimes drive in
New York, it was
a n n ou n ced r e ­
c e n tly by Basil
O’Connor, p r e s i­
dent of the Na­
tio n a l F ou n d a­
tion.
As g e n e ra l
chairman, he will
enlist the aid of
bu sin ess, indus­
S. H. W O O L L E Y
trial, professional
and civic leaders, and coordinate all
fund-raising activities in the 26-yearold organization’s campaign against
crippling birth defects, arthritis and
polio.

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Federal Reserve Bank of St. Louis

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38

Si tiilIri/. Sh u pert S em in ar H ives
B a n k ers Tips an T ru st W o r k
ORE than 300 bankers attended a charts where applicable. This com­
two-day seminar on trust opera­ plete file of expert opinion on the
tions in Philadelphia last month, spon­
many phases of trust work was then
sored by Studley, Shupert Trust In­ made available to each registrant im­
vestment Council. The conference mediately following the closing semi­
covered practically every management nar session.
and operational phase of trust de­
Banks which are members of Stud­
partment work, with highly qualified ley, Shupert Trust Investment Coun­
men handling each topic.
cil also have complete access to this
After a brief welcome by William material, Mr. Shupert said.
Participants in the seminar heard
H. Shupert, president, the program
began immediately with major ad­ many fine addresses covering such
dresses and work sessions.
topics as: The World Challenges Us,
Because the wealth of information Outlook for Chemicals and Drugs, In­
contained in each of the speakers’ terviewing for Profit, What Is a Trust
p re s e n ta tio n s , reflecting weeks of Investment, Fire and Casualty Stocks
preparation and research in depth, evitable Inflation Affect Investment
Studley, Shupert again printed com­ as Trust Investments, How Does Inplete copies of each talk, including Policy?, Bank Stocks, Guidelines for

M

the Inexperienced in the Use of Mu­
nicipal Bonds, The Eastern Railroad
Situation, The Brave New World of
the Future, Plans for the Future, and
Regulation Nine—The Open Door to
Modern Trust Department Organiza­
tion.
The first workshop featured these
interesting topics: Trust New Busi­
ness, Cost Analysis in Relation to a \
Trust Department, Maintaining Sep­
arate Security Holdings Within Man­
ageable Limits, and Supplying Invest­
ment Information.
On the second and final day of the
meeting, the investment panel of six
experts from Philadelphia banks and «
investment firms covered these sub­
jects: In com e S tock s as Growth
Stocks, A Stock Is Not a Portfolio, Is
Now the Time to Build Reserves in
Trust Accounts?, The Problem of the
Close Corporation, The Value Ap­
proach to Investments, and Foreign *■
Securities.
Several Studley, Shupert executives
shared the speakers platform with the
guest lecturers, including both Mr.
Shupert and Everett M. Studley.

75th Anniversary
Western & Southern Life Insurance
Company, Cincinnati, Ohio, is cele­
brating its 75th anniversary as one of
the top life insurance firms in the
nation, in terms of total assets.
In less than seven years Western &
Southern has rocketed from a strict­
ly regional operation to a position as

75TH anniversary emblem forms backdrop
for William C. Safford, pres, o f Western &
Southern L ife Insurance Co.

the 18th largest life company in the
U. S. insurance industry with assets
of more than $1.25 billion and insur­
ance in force of $6.1 billion.
In the last five years it has poured
upwards of $10 million into downtown
Cincinnati construction, and added a
$4 million West Coast office building
at Los Angeles.
William C. Safford, who has been
president of the company since this
boom period started in 1957, estimates
its assets will increase another $75
million to $80 million this year.
Northwestern Banker, November, 1963


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

39

Six Days After Retirement

Solom on
A
. Sm ith
S u cceed H im at N o rth ern T ru st
OLOMON A. SMITH, 86, died Octo­ tribution to banking, civic and charit­
ber 21 just six days after he had able work in Chicago when the Chi­
asked the Northern Trust Companycago Tribune lauded him in an edi­
board of directors to relieve him of his torial following his death.
Mr. Smith’s grandfather, Solomon
responsibilities as chairman of the
board of the C h ica go bank. Mr. Albert Smith, moved to Chicago from
Smith’s resignation was accepted re­ New England in the 1850’s and was
gretfully and the directors immediate­ one of the founders in 1857 of the Mer­
ly had named him honorary chairman. chants Savings, Loan & Trust Compa­
He had continued also as a member of ny, later becoming its president. The
late Mr. Smith’s father, Byron Laflin
the board.

S

S. A. S M IT H

D. R. F U L L E R

E. B. S M IT H

Following acceptance of Mr. Smith’s
resignation as chairman, the board
elected his son, Edward Byron Smith,
as chairman and chief executive offi­
cer, advancing him from the presi­
dency. Solomon Byron Smith, his oth­
er son, was advanced from vice chair­
man to chairman of the executive
committee and will continue to share
senior responsibilities in the manage­
ment of the bank.
The board stated its intention of
electing Douglas R. Fuller, presently a
senior vice president, as president of
the bank, subject to his election as
director of Northern Trust at a special
meeting of the stockholders to be held
November 19. Edward Byron Smith
will continue as president as well as
chairman pending Mr. Fuller’s elec­
tion.
Solomon A. Smith received a unique,
highly-deserved recognition of his con­

H a n k ers You K n o w . . .
(Continued from page 28)
agement of the bank under President S. Clark Beise.
On October 15, 1963, the board elected him president, to
become effective upon Beise’s retirement November 1.
Since his return to San Francisco, Mr. Peterson has
been called upon to fill a growing number of commit­
ments with leading civic and business organizations. He
is a director of the California State Chamber of Com­
merce and heads its recently formed statewide Committee
for Economic Growth.
He is also a director of the Council for Economic
Growth and Security, the Swedish Chamber of Com­
merce of the U.S.A. and the United Community Fund.
In addition, he is a member of the board of governors of

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

S. B. S M IT H

Smith, was the founder in 1889 of The
Northern Trust Company, serving as
its president until his death in 1914.
At that time, his son, Solomon A.
Smith, who had joined the bank in
1900, took over as president, serving
until his election as chairman in 1957,
and as honorary chairman from Octo­
ber 15 until his death six days later.
Mr. Smith had been a tireless work­
er on behalf of civic and charitable
interests in Chicago, always prefer­
ring to work more behind the scenes
and seldom being quoted in connec­
tion with such work, thus leading to
the appellation referred to in the
Tribune’s laudatory editorial as “ Si­
lent Sol.”
Until recent years he had also been
active in clearing house and other
banking activities, as well as having
been a director for many years of
such firms as Commonweath Edison

Company, Illinois Tool Works, Inc.,
Montgomery Ward & Company, Inc.,
United States Gypsum Company and
Elgin National Watch Company.

Sons

Investment Bankers to Meet
The 52nd annual convention of the
Investment Bankers Association of
America will be held December 1-6 in
Hollywood, Fla., announces A m yas
Ames, IBA President and managing
partner of Kidder, Peabody & Com­
pany, New York. Convention sessions
will be held at the Hollywood Beach
Hotel, and delegates will be accommo­
dated there and also at The Diplomat,
a nearby hotel in Hollywood.
In addition to the year-end address
by IBA President Amyas Ames and
the inaugural address by the incoming
president, David J. Harris, resident
partner, Bache & Company, Chicago,
the delegates will also hear from the
following guest speakers during the
week:
William L. Cary, chairman, Securi­
ties and Exchange Commission; Doug­
las Dillon, Secretary of the Treasury,
and George D. Woods, president, In­
ternational Bank for Reconstruction
and Development.

Named N. Y. U. Chairman
George A. Murphy, chairman of the
board of the Irving Trust Company,
N ew Y ork, has
been e l e c t e d
chairman of New
Y ork U n iver­
sity’s b oa rd of
trustees. His pre­
decessor, G eorge
E. Roosevelt, who
died earlier last
month, had
served as a mem­
ber for 32 years,
G. A. M U R P H Y
12 as its head.
Mr. Murphy has been a trustee of
the University since 1959 and was
elected vice chairman of the board
last year.

the San Francisco Bay Area Council and the board of
trustees of the California Alumni Foundation, and has
been active with the American Bankers Association.
His social affiliations include membership in the Stock
Exchange Club, San Francisco; California Club, Los An­
geles; and The Links Club, New York.
Married in 1927 to the former Patricia Price, Mr.
Peterson has a son, R. Price Peterson, who is a member
of the faculty of the University of Pennsylvania Medical
School, and a daughter, Mrs. Stephen W. Bennett of New
Orleans., La. Mrs. Peterson died in 1960.
Mr. Peterson was remarried in December, 1962, to
Barbara Welser Lindsay. They maintain residences in
San Francisco and at Seven Hills Ranch in Walnut Creek.
His hobbies are swimming, fly fishing and good books.
—End.
Northwestern Banker, November, 1963

40

C h ristm a s Clubs W ill r a il
S I.ii Itilliou This M o u th
Members State Total
ORE than 14 million Christmas
2,841,068 $343,102,478
Club members will receive checks New York
Pennsylvania
1,766,313 $214,851,350
totaling $1,659,430,000 when the clubs
1,218,499 $166,297,697
are paid off in November by some New Jersey
1,115,844 $181,774,895
9,300 banks and savings institutions. California
Surveys by Christmas Club a Corpo­
This announcement was made by Ed­
ward F. Dorset, president of Christ­ ration show that the total will be used
mas Club a Corporation. “ This is a in the following ways:
welcome forecast of good business for Christmas
Purchases
30% $ 497,829,000
local merchants. With such an army
o f thrifty citizens contributing to the Savings and Invest­
ment for Future
wealth of the nation, it is evident that
Use
42%
696,960,600
the American people have confidence
17%
282,103,100
in the strength of our economy,” Mr. Taxes
Year-end Bills
5%
82,971,500
Dorset said.
Miscellaneous
6%
99,565,800
For a full twelve years Christmas

M

Club a Corporation surveys have
shown club disbursements exceeding
a billion dollars each year. Both
memberships and dollars saved have
continued steadily upward. This year
tops the 1962 record of $1,573,861,000.
The 1963 survey shows that four
states account for some 50 per cent
of the memberships with New York
leading, followed by Pennsylvania,
New Jersey, and California. Figures
for these states are:

National coverage assures
exposure to excellent
opportunities on basis employer assumes all expenses.
COM M . LOAN O FFICER . ... to $20,000
TRUST (CO RPO RATE)
INVESTMENT O FFICER .....

... to $20,000

$1,659,430,000

Sees Economy Gaining
One of America’s foremost business
analysts, Elliott Bell, editor of Busi­
ness Week, magazine, told a group of
Kansas City business leaders that the
economy of the United States is ap­
proaching record heights. The end of
a period of price weakness in basic in­
dustries, two consecutive good auto
years with prospects for a third, and
record corporate profits were among
the positive economic factors cited.
Mr. Bell was guest of honor at a
luncheon last month hosted by James
M. Kemper, Jr., president of Com­
merce Trust Company. Mr. Bell spoke
following the luncheon, which was
held in the bank’s dining room.
The distinguished editor also saw

JAM ES M. K EM PER, JR. (le ft), pres.,
Commerce Trust Co., visits with Elliott V.
Bell, editor o f Business Week, before Mr.
Bell addresses business conference spon­
sored by the bank.

some danger signals in today’s econ­
omy. Most of these negative signals
could be described as political. He
said, “All of the financial factors indi­
cate our situation is excellent if we
do the things that are needed: reduce
taxes, control spending, end the bal­
ance of payments deficit and hold
down costs.”

Surplus Increased $ 5 0 0 ,0 0 0
Irving Seaman, Jr., president, Na­
tional Boulevard Bank of Chicago,
has announced that the directors have
voted to increase the bank’s surplus
from $4,500,000 to $5,000,000 by a trans­
fer of $500,000 from the undivided
profits account. This transfer in­
creases total capital and surplus to
$7,000,000.

to $20,000

SENIOR CREDIT O FFICER .. .to $15,000
SAVINGS AND LOAN ..... .. to $15,000
M ORTGAGE LOAN EXEC. .. .to $16,000
NATIONAL ACCO UNTS

to $20,000

CORRESPONDENT

to $16,000

AUDITORS ........................

to $12,000

COM M. FIN. EXEC. ______

to $16,000

OPER. O FFICER (C PA )
ASST. TRUST .............
INSTAL. LOANS ...........

to $18,000

RK WTH
9

AND LIGHT COMPANY

.....to $12,000
to $12,000

this investor-owned

S&L CONTRO LLER (C PA ) ....to $14,000
INVESTMENT ANALYST ..

to $14,000

electric and gas company

BRANCH MANAGERS .... ... to $13,000
Submit complete resume ir confidence.

now serves 269 communities

ARVID D. JO H N SO N

CADILLAC
ASSOCIATES INC.
29 E. M ad ison B ld g., C hicago 2, Illin ois
F in a n cia l 6-9400

Northwestern Banker, November, 1963


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

in 25 counties of loiva
W R IT E FOR A N N U A L REPORT

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41
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G eorge A. M urphy , Chairman o f the Board
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Federal Reserve Bank of St. Louis

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, November, 1963

42

Otis McClintock Retiring
R. Otis McClintock, senior chairman
of the board of the First National
Bank and Trust Company of Tidsa,
will resign that post November 15.
Mr. McClintock’s resignation from
the senior chairmanship comes after
45 years as a di­
r e c t o r of F i rst
National and 35
year s as p r es i ­
dent or top board
executive.
He will remain
as a director of
the b a n k , a n d
will maintain an
office in the First
National Building.
Mr. McClintock
was first elected to the board in 1918,
and 10 years later was named presi­
dent of the bank. Under his guidance
First National grew from a bank with
$20 million in deposits to one of the
Southwest’s leading financial institu­
tions with nearly $300 million in de­
posits.

Bank Offers Math Course
For the fourth consecutive year,
Chemical Bank New’ York Trust Com­
pany is offering a course, “ Mathemat­
ics in the World of Finance,” in co­
operation with the board of education
of the City of New York, Harold H.
Helm, chairman of the bank, has an­
nounced.
The course, limited to 50 mathemat­
ics and social studies teachers in the
public schools, is designed to provide
a well-rounded understanding of com­
mercial banking and finance.

ON OR OFF!
When bank automation came on the scene it made a big splash.
But the “ average” bank couldn’t take full advantage of it without
increasing expenses. Cummins ODP fills this void. Whether book­
keeping is on-or off-premise, it's the o n ly system that allows the
“ average” bank to have all the benefits of automation a n d save
m oney.
CO M PLETE O N -PR EM ISE
AUTOM ATION T H A T SA V ES
MONEY . . . OR . . .
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S A L E S AN D S E R V IC E IN A LL P R IN C IP A L C IT I E S

Northwestern Banker, November, 1963


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

Heads Canadian Bank
The board of directors of the Mer­
cantile Bank of Canada has announced
the election of James S. Rockefeller
as its chairman. Mr. Rockefeller is
chairman of First
Nat i onal C i t y
Bank, New York.
A t th e s a m e
meeting, R obe r t
P. McFadden and
St ewart B. Clif­
ford were elected
to the board and
named vice presi­
dent and execu­
ti ve v i c e presi­
J. S. R O C K E F E L L E R
dent, respective­
ly. Mr. MacFadden is a vice president
of First National City Bank heading
its Canadian business.
Mr. Clifford, who has been an as­
sistant vice president in that area,
has been appointed general manager
and designated chief executive offi­
cer.

43

Receives 25-Year Pins
George V. La Monte, Jr., president,
George La Monte & Son, manufactur­
ers of safety paper for checks, and
Robert P. O’Connor, La Monte sales
representative, Chicago, were induct­
ed into the firm’s 25-Year Club last
month. The two men were presented
watches and diamond-studded pins to
mark the occasion. Senior company
employees, their wives and other club
members attended the event.

FINANCE FORUMS . . .
(Continued from page 29)
a bridal style show. The bank pro­
vides a speaker on the subject of
banking for brides and family budg­
eting and the store provides a speaker
on wedding etiquette.
This program starts at 5:00 p.m.
with refreshments, at which time
there are on display various table set­
tings for the benefit of the bride-to-be
and a stationary wardrobe containing
invitations, note paper, etc. The whole
program is intended to give the bride
an indication of the cost of various
types of weddings as well as how to
start her new life in the proper way.
We offer two different programs for
teenagers. In the spring of each year
we have an economic conference for
young adults, which is held at one of
the local hotels and lasts for two and
one-half days. Approximately 250 high
school seniors attend this from a sev­
en state area. Each correspondent
bank in the area is invited, if it wishes,
to send one or two seniors selected by
the local school. This is strictly for
the education of the students and
there are no commercials.
At the suggestion of the local
schools, this program has been ex­
tended by providing a program one
afternoon and evening in the fall to
which 15 high school seniors from the
17 local public high schools partici­
pate
The results are, of course, upper­
most in our minds. The direct results
are hard to measure, as these are pure­
ly educational programs. We do feel
that the r esul ts are good or we
wouldn’t continue the forums. They
have a very favorable acceptance in
the community and we feel that it is
good public relations. We know that
we get some direct business, but the
amount is difficult to estimate. With
the exception of the Brides’ Forum
there is no direct promotion for bank
services.
We feel a little bit like the pupil
who when asked by the teacher:
“What is the difference between re­
sults and consequences?” answered:
“ Results are what you expect; conse­
quences are what you get.” — E n d .

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

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prime advantages of Cummins ODP is its low reject rate. Operating
costs are the lowest of any system. The o n ly way the “ average ” bank
can obtain all the benefits of automation a n d save m o n e y
whether bookkeeping is on-or off-premise, is with.Cummins ODP.
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Northwestern Banker, November, 7963

44

Check Filing Aids
Increased check filing efficiency is
made possible by several features of
the trays and guides in the latest
model of the Mosler Selectronic Files,
according to John E. Hampel, vice
president-marketing, The Mosler Safe
Company.

checks. The trays are equipped with
three anodized aluminum rods and the
guides have three slightly larger holes,
permitting the index guides to tilt at
a comfortable angle.
With a capacity of 250,000 checks,
push button controlled Selectronic
Files are designed to bring any se­
lected check tray to the operator in­
stantly, according to Mr. Hampel.

1st National City
Offers Money Exhibit

NEW Mosler check trays and guides.

The new guides, made of rigid vinyl
and available in several attractive col­
ors, have flexible transparent vinyl
pockets for a signature card and for
another label. This makes signature
verificatiton while filing an automatic
operation since to file a check, the
operator must look at the signature
card.
Mosler trays and guides are avail­
able in two sizes for regular and large

BANKERS BUILD
BIGGER AND BETTER
CREDIT LIFE PROGRAMS
w ith

WESTERN & SOUTHERN
SERVICE & PLANS
w ide range o f plans
simplified administration
fast claims service

First National City Bank of New
York is making available to its corre­
spondent banks a unique collection of
currencies planned for use by both the
Allies and the enemy during World
War II for the invasion and occupa­
tio n of other countries. Included are
paper script and currency issued in
concentration and prisoner of war
camps.
The collection of Allied Occupation­
al and Invasion Notes includes more
than 20 different currency issues rang­
ing from U. S. “yellow seal” notes first
issued in the invasion of North Africa
—some of which may still be in circu­
lation — to Japanese military notes
grandiosely issued in guilders, ster­
ling, dollars and pesos for their de­
signs of empire.
The exhibit is cased in teak, glass
and stainless steel, crated and shipped
as a traveling exhibit throughout the
country.

Annual Report Recognized
The Bank of California, N. A., San
Francisco, is one of three national
banks in the United States to receive
a top award for its annual report in
the Annual Report Survey sponsored
by Financial World magazine. The
other two banks so honored were
First National City Bank and Frank­
lin National Bank, both of New York.
Vice President James Lea accepted
the award for The Bank of California
before 1,000 business, industrial, and
financial leaders and their associates

at the annual awards banquet October
30, in the grand ballroom of the New
York Hilton at Rockefeller Center.
Principal speaker at the function
was Senator Barry M. Goldwater of
Arizona.

Foundation Releases 1964
Advertising Plans Book
The 1964 annual advertising plans
book for local bank advertising is be­
ing released by the Foundation for
Commercial Banks to banks through­
out the country, Rogers H. Woods, Jr.,
executive director of the Foundation,
announced last month.
Featured in the new 20-page, 14 by
17 inch, full-color book are promotion­
al materials for use by local banks to
tie in with the Foundation’s new na­
tional advertising themes centering on
the “full service bank.”
The 1964 plans book was prepared
by the First Financial Advertising
Group, Brookline, Mass., recently re­
tained by the Foundation as the agen­
cy to sell and distribute tie-in advertis­
ing materials to local banks. The agen­
cy operates a nationwide network of
31 account executives to provide per­
sonal service to the individual banks.
A series of ten bank service pack­
ages, including newspaper ad mats,
lobby display poster, and an envelope
enclosure, is offered with each plans
book. Emphasis in the new advertis­
ing aids is given to the individual
bank services such as savings, check­
ing accounts, auto loans, personal
loans, and one-stop banking.
Another innovation of the new plans
book is an “Employee Orientation
Program” which includes a 12-month
series of posters, teller tent cards, tell­
er badges inscribed with “full service
bank,” and a flip-chart presentation
with a script for use at employee meet­
ings. Suggested text for a series of
12 monthly newsletters, each covering
a specific banking service, is also part
of the training package.

CREDIT
INSURANCE
DEPARTMENT
P.O. Box 1119
Cincinnati 1, Ohio

TH E W E S T E R N
A N D SO U TH ER N
LIFE IN SU R AN C E
COMPANY
A MUTUAL COMPANY
W illia m C . S affo rd , P re sid e n t

N orthw estern

Banker. N o v e m b e r ,


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

1963

7 5 Y ears-D iam o n d Jubilee
at the

B irthplace o f the A r t C a le n d a r Industry

The Thos. D. Murphy Co.
Red Oak, Iowa

"Our Calendars Work for You
Every Day of the Year'

45

AN ENTIRELY NEW
APPROACH TO
RECEIVABLE FINANCING
IS NOW AVAILABLE
FROM LAWRENCE!

IBM Ageing Report on all certified
receivables.

W HY SHOULD YOU USE CARS?
Certified Accounts Receivable Serv­
ice gives you the same protection
in financing the movement of goods

CERTIFIED
ACCOUNTS
RECEIVABLE
SERVICE
THE LAWRENCE COMPANY

that Lawrence's warehouse receipts
give you in financing inventory.
CARS spares you the time and ex­
pense of administering extensive
record controls which otherwise
erode your profit. Above all CARS

WHO SHOULD USE CARS?

permits a more aggressive entry into

Any bank loan officer who is inter­

this high revenue lending field by

ested in accounts receivable lending

removing the unusual hazards found

on a sound, protected basis should

in receivable financing.

investigate this service.
>

,

WHERE CAN YOU FIND OUT

WHAT IS CARS?

ABOUT CARS?

Under this plan Lawrence:

Any one of the forty nationwide

1. Certifies to you, the bank, the

offices of The Lawrence Company

validity of your borrower's receiv­

will be pleased to give you infor­

ables at the time they are assigned

mation concerning this service.

to you as loan collateral;

Consult the white pages of your

2. Guarantees that all payments

telephone directory, or to receive a

on such certified accounts will be

complimentary brochure detailing

held for your account and deposited

the CARS story, write: The Lawrence

as you have instructed; and,

Company, 37 Drumm Street, Dept.

3. Provides you with a monthly

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

I, San Francisco, California 94111
Northwestern Banker, November, 1963

46

A .U .A . A g

C r e d it

N o v e m b e r 1 7 - 1 0 in K a n s a s C it y
T . P. A X T O N

W . F. K E L L Y

“A Farm Loan Officer Views Management” —
HE program for the 12th National Agricultural Credit
Charles P. Moore, vice president, The Great Falls
Conference of the American Bankers Association
National Bank, Great Falls, Mont.
shows plenty of emphasis this year on farm credit and
P.M.
financing. The conference will be held November 17-19
3:00—Bull Sessions—Theme: “Meeting Farmers’ Credit
in Kansas City, Mo., at Hotel Muehlebach.
Needs.”
In addition to individual addresses directed to the
Discussion Leaders:
credit phase of the farm business, the conference will
James R. Austin, president, National Bank of
feature two discussion sessions. The first, slated as a
Orange, Va.
bull session, has the topic, “Meeting Farmers’ Credit
Tom Bartholomay, assistant vice president and
Needs.” The second is a panel on “Correspondent Bank­
secretary, Merchants National Bank and Trust
ing for Farm Lending.”
Company, Winston-Salem, N. C.
Wayne A. Corpening, vice president and manager,
agricultural department, Wachovia Bank and
Trust Company, Winston-Salem, N. C.
Lindley Finch, vice president, Continental Illinois
National Bank and Trust Company of Chicago,
111.
W. D. Finney, president, Washita Valley Bank,
Fort Cobb, Okla.
John K. Gayden, vice president, Deposit Guaranty
Bank & Trust Company, Jackson, Miss.
John H. Hembree, vice president, Union Planters
T . R. S M IT H
N. T. T I E M A N N
C. B. M A T E E R
National Bank, Memphis, Tenn.
Sam L. Hunter, Jr., president, Bank of New Mad­
The complete program follows:
rid, Mo.
Linton C. Lull, president, The Smith County State
S U N D A Y , N O V E M B E R 17
Bank, Smith Center, Kan.
P.M.
Charles B. Presley, vice president, Georgia Rail­
3:00 Registration—Dining Room No. 1, Mezzanine.
road Bank & Trust Company, Augusta, Ga.
C. K. Skinner, Jr., vice president, Colorado Na­
M O N D A Y , N O V E M B E R 18
tional Bank, Denver.
A.M.
N. T. Tiemann, president, Commercial State Bank,
9:15 Presiding — T. P. Axton, chairman, Agricultural
Committee, The American Bankers Association,
Wausa, Neb.
Gerald S. Toll, vice president, Security First Na­
and president, Lafayette Savings Bank, Lafayette,
tional Bank, Los Angeles, Calif.
Ind.
J. L. Williams, Jr., president, Farmers Bank and
Address—William F. Kelly, vice president, The
Trust Company, Princeton, Ky.
American Bankers Association, and president, The
First Pennsylvania Banking and Trust Company,
A G C R E D IT C O N F E R E N C E . . .
Philadelphia, Pa.
(Turn to page 82, please)
“ Credit Needs Are There—Are You?”—Otto Kotouc,
Jr., president, Home State Bank, Humboldt, Neb.
“ Farm Finance Programming”—Thomas R. Smith,
president, The First National Bank of Perry,
Perry, Iowa.
“ New Concepts in Feeder Financing” — Kenneth
Monfort, Monfort Feed Lots, Inc., Greeley, Colo.
P.M.
2:00 Presiding — Edward M. Norman, president, First
National Bank, Clarksville, Tenn.
“ How Bank Management Views Agricultural Lend­
ing Officers”—Curtis B. Mateer, executive vice
L. F IN C H
T. D. B R O W N
J. W . B E L L A M Y
president, Pierre National Bank, Pierre, S. D.

T

Northwestern
Banker, November, 1963

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

47

. . . and have him

like you
fo r it!

A u th o rita tive s o u r c e fo r p ra ctica l a d vice on
farm m a n a g em en t, m a rketin g , a n d p ro d u ctio n .
T h e b e t t e r y o u r c u s t o m e r r u n s his f a r m , t h e b e t t e r t h e
s e c u r i t y b a c k o f his lo a n . S o it 's a g o o d b a n k m o v e t o s e e
he h as p ro fe s s io n a l g u id a n c e a n d d e p e n d a b le fo re c a s ts
t o h e l p . For o n ly a f e w c e n t s a m o n t h , y o u r b a n k c a n m a k e
s u r e h e g e t s t h e i n f o r m a t i o n h e t r u s t s a n d w i ll u s e to g e t
t h e m o s t f r o m his a c r e a g e a n d f r o m m a r k e t i n g t r e n d s .
I t ’s a n id e a l w a y to m a k e y o u r c u s t o m e r s b e t t e r
f a r m e r s w i t h o u t h a v i n g to b e a f a r m s p e c i a lis t y o u r s e l f .
D o a n e 's “ F a rm in g for P ro fit’’ gives co n c is e “ h o w t o ”
a n d “ w h e n t o ” i n f o r m a t i o n o n w h i c h f a r m e r s c a n b u ild
p r o f i t a b l y m o n t h b y m o n t h . It is w r i t t e n a n d e d i t e d by
D o a n e A g r i c u l t u r a l S e r v i c e , In c ., t h e o l d e s t a n d l a r g e s t
o r g a n i z a t i o n in t h e U n i t e d S t a t e s e n g a g e d in f a r m m a n ­
a g e m e n t , rural a p p ra is in g , a n d a g ric u ltu ra l re s e a rc h .
D o a n e ’s s t a f f o f 1 5 0 a g r i c u l t u r a l s p e c i a lis t s f e e d b a c k
m a r k e t - b y - m a r k e t e v a l u a t i o n s to g iv e f a r m e r s a q u i c k

g r a s p o f v ita l s i t u a t i o n s t h e y n e e d to k n o w a b o u t n o w .
F a r m e r s lik e t h e s p e c i fi c s . S e v e n e d i t i o n s o f “ F a r m ­
in g f o r P r o f i t ” a r e p r i n t e d , so e a c h f a r m e r g e t s t h e e d i ­
tio n s p e c i f i c a ll y e d i t e d f o r his a r e a . A n d y o u r b a n k
r e c e i v e s e x c lu s iv e d i s t r i b u t i o n r i g h ts in y o u r t r a d e a r e a .
C o m p l e t e i m p r i n t i n g a n d m a i l i n g s e r v ic e is a v a i l ­
a b l e . Y o u r b a n k n e e d n o t d o a n y t h i n g m o r e t h a n to
s u p p l y us y o u r list. Or, y o u m a y w a n t to h a n d l e t h e m a i l ­
in g d i r e c t f r o m y o u r b a n k .
“ F a r m i n g fo r P r o f i t ” a ls o lin k s y o u r b a n k w i th D o a n e
p e o p le . . . p e o p le w h o kn o w how d e p e n d e n t th e fa rm
c o m m u n i t y is o n y o u r in s t i t u t i o n . Y o u s e n s e t h is a w a r e ­
n e s s a n d f in d it p l e a s a n t a n d h e l p f u l to c o m m u n i c a t e
w i t h D o a n e o f t e n a b o u t w a y s to u s e “ F a r m i n g fo r P r o f i t ”
in a d v a n c i n g y o u r f a r m p r o g r a m still f u r t h e r . For full
in fo rm a tio n , w rite

DOANE A G R ICU LTU R A L SER V IC E, INC.
5144

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

DELMAR BLVD.
N orthw estern

ST.

LOUIS 8,

Banker,

MO.

N ovem ber,

196 3

48

H oir MV
* In c r ea sed P r o f i t . . .
(Continued from page 25)
bank’s, devote considerable time to
the dealer’s sales force. They have
been very successful in improving
sales techniques and merchandising
methods; they conduct meetings and
award prizes for contest winners.
How many of you have the time, the
inclination and the ability to perform
such services for the dealers?
Almost without exception they have
been successful in increasing dealers’

FREE

finance and insurance penetration ma­
terially over what prevailed pre-Yegen. This, of course, spells more in­
come for the dealer and his salesmen
and, what is more interesting, for the
bank.
As I may have mentioned
earlier Yegen renders expert
assistance on outside collec­
tions, repossessions and mak­
ing floor plan car checks. They are

.. .T
OA
N
YIN
T
E
R
E
S
T
E
DP
A
R
T
Y
!
COST OF
LIVING
COST OF
HOUSING
EMPLOYMENT
SCHOOLS &
EDUCATION
COMMUNITY
PROPERTY
LAWS
LAND
RETIREMENT
INDIANS

also extremely helpful in running
down skips and effecting repossessions
where cars are removed from the
bank’s normal area of operation. They
also supply you with a detailed month­
ly audit of wholesale and retail pur­
chases and a delinquency and repossion report showing your experience
compared with the average of all their
banks. Average delinquency ratio, 30
days and over, is 1.067 per cent, and
average repossession frequency is .32
per cent.
Business Produced

“That’s a great story,” you are probably thinking, “but what business do
they actually produce for the bank?”
That is a logical question and the best
answer I know is to tell you what
they have done for us. Bear in mind
that many people consider Chicago
one of the toughest markets in the
country in the field of automobile
finance. Competition is furnished by
some 90 banks in addition to all the
national finance companies, many re­
gional companies, and local companies
too numerous to mention. There must
be hundreds of credit unions and consumer finance companies. We brought
Yegen Associates to Chicago in the
summer of 1959 and the record to date
is shown in the accompanying chart.
These figures illustrate the growth
pattern we have experienced under
Yegen. Before concluding this statistical recital I think you will want to
know the loss figures for the fouryear period. Here they are

(5 V 4 " X

71/4"

-

3 2 pages)

WRITE: SPECIAL SERVICES
DEP’T. F
P. O. BOX 71, PHOENIX, ARIZ.

k

<

Net Rosses ..................$144,000

which provides a ratio of .86 per cent
on retail liquidation of $16,740,000.
W e’re not proud of these nor are we
embarrassed by them; they are stated
merely as factual information.
Gross 8 Per Cent

We do think the over-all record is
pretty good; we do not believe we
could have come close to this produc­
tion without the help of Yegen Asso­
ciates. I figure that we gross about
8 per cent on our Yegen business.

1

At the risk of being labeled a heretic I lean much more towards the dol­
lars the business will produce than to
a hypothetical yield. After all it does
take dollars to pay savings interest
and dividends, salaries and income
taxes. I follow a rule of thumb—if
we can keep expenses and overhead
at 30 per cent or less of gross revenue,
profits will take care of themselves.—

*

End.
Northwestern
Banker, November, 1963

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

4

Charge-Offs .................. $193,000
Recoveries ................. 49,000

MEXICO
ETC.

v

4

49

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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1963

50

B a n k s B u y A w a r d W in n e r s

CONGRATULATIONS are extended in the photo at left by George Haugher (le ft),
assistant vice president, First National Bank and Trust Company o f Tulsa, to Scott
Sherrill, owner o f the grand champion steer of the Tulsa State Fair. The steer was
purchased by the First National for $2,500. AT RIG H T: J. M. Ford II, president,
First National Bank o f St. Joseph; Lyle Springer, American Angus Association, are
shown with Russell L. Plattner, owner of the prize-winning Angus steer purchased by
Mr. Ford on behalf o f the St. Joseph bank.

HE purchase of prize winning First National Bank of St. Joseph, Mo.
For the 18th consecutive year the
steers has long been a favored
public relations activity of banks.First National Bank and Trust Com­
Two banks that recently participated pany of Tulsa topped all buyers at
in livestock shows in this way are the Tulsa State Fair junior livestock
the First National Bank and Trust auction when it paid $2,500 for the
Company of Tulsa, Okla., and the grand champion steer.

T

The steer was a Hereford shown by
Scott Sherrill of the Carnegie, Okla­
homa, Future Farmers of America.
This is the second consecutive year
that the Carnegie FFA chapter has
won the grand championship. The
top auction price was bid by George
Hauger, assistant vice president. The
1963 auction bid brings to $27,740.89
the amount which the First National
has contributed to Oklahoma farm
youths through the purchase of the
grand champion steers.
A prize-winning Aberdeen Angus
steer was purchased by the First Na­
tional Bank of St. Joseph at the 44th
annual 4-H Club Interstate Show re­
cently in St. Joseph. J. M. Ford II,
president, did the bidding on behalf
of the bank.
The 4-H Club Interstate Show is
sponsored by the businessmen of St.
Joseph. It draws entries from Iowa,
Nebraska, Missouri and Kansas.
In addition to giving support to
such events as this show, First Na­
tional of St. Joseph works to encour­
age agricultural development. The
bank has a full-time agricultural de­
partment, headed by Jack Killackey,
and composed of men well-versed in
the business of livestock raising and
crop management.

ON THE COVER

I

Since 1907

W estern Mutual Insurance Co.
Operating
Under

Fire and
Allied lines
Automobile
Casualty

j | ! ! ^

Inland Marine
Travel A ccident

Ä

* -

American
Agency
System

Inquiries
Welcomed

Other Lines

Home

O f f i c e

6 16 - Tenth St.
DES M O IN ES, IO W A
A

M ultip le

L ine

Northwestern
Banker, November, 7963

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

N on-A ssessa ble

NTERNATIONALLY k n ow n
cartoonist Chester Gould, cre­
ator of the comic strip character,
“ Dick Tracy,” demonstrates his
technique to Leigh R. Gignilliat,
senior vice president, American
National Bank and Trust Com­
pany of Chicago, during an in­
spection of the bank’s 12-window
exhibit on the theme: “ Chicago
Police Department . . . the Na­
tion’s Finest.”
Developed in cooperation with
the department’s public informa­
tion office, the displays cover vir­
tually every aspect of police
operations, including the ultra­
m o d e r n electronic communica­
tions center, the crime labora­
tory, traffic division, task force
operation, youth division, and
police academy. Of particular
interest is a display of photo­
graphs and engravings showing
each of the city’s police superin­
tendents from the time of the
department’s organization in the
mid-19th century to the present.
Constructed as a public service
by American National Bank, the
displays will be donated to the
police department at the conclu­
sion of the public exhibit.

Com pany

51

W h a t y o u s h o u ld
k n o w a b o u t D u ro x
a n d its p r o d u c t s

You may have read a recent report of some
recent developm ents regarding Durox M anage­
m ent Company. The report is true.
Beginning at once, new contracts with this
company will be fulfilled as specified, and prod­
uct quality will be of the usual high standard.
DUROX precast cellular concrete, a revolu­
tionary building m aterial, has many advantages
— light weight, fast installation, high strength,
insulating properties. It can be used for roof

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

decks, lintels, exterior walls, interior partitions,
insulating walls, and floor decks.
These are points to rem em ­
b er w hen you c o n s id e r loan
a p p lic a tio n s on c o n s tru c tio n
plans specifying DUROX pre­
cast cellular concrete. Quest­
i o n s m ay be d ire c te d to
Durox Lake Elmo, Minnesota ouRox pRECAST
0 0 U 4 ^ .

CELLU LA R CO N CRETE

Northwestern Banker, November, 1963

USED FURNITURE^

* h r due

,


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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

AMERICAN EX P R ES S
TRAVELERS CHEQUES

54

O u tlo o h fin ' f la n k in g . . .
(Continued from page 23)
retailers of the burden of carrying
inventory and, to some extent also, re­
ceivables. Manufacturers have accom­
plished this either directly by carry­
ing inventory for retailers or indi­
rectly by organizing captive finance
companies or arranging other means
of financing retailers’ requirements.
Mechanization of office detail and
improved methods have enabled many
manufacturers and retailers to reduce
inventory in relation to sales volume.

PROVEN R E L IA B L E
FOR
OVER 6

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• EXTENDED
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• HOMEOWNERS
• AUTOMOBILE
• INLAND MARINE

What this has meant to banks, of
course, is smaller loan demand for
purposes that had once been impor­
tant sources of loans. In my opinion,
there is no reason to believe that this
situation will change materially in the
foreseeable future.
New Competition

When we look about us today, we
note that commercial banks have a
great many relatively new competi­
tors in their long established field of
providing funds for both business and
the consumer. In addition to corpora­
tions using their idle funds for the
purpose of taking care of their own re­
tail and wholesale customer credit re­
quirements, they have become heavy
investors in commercial paper which
represents the temporary borrowing
requirements of other business con­
cerns. Much of this business would
otherwise go to banks.
Pension and profit-sharing funds,
growing very rapidly, are now in the
market to lend funds for term pur­
poses, and they are also becoming a
factor in the mortgage market. Our
older competitors—finance companies,
personal loan companies and commer­
cial finance companies — continue to
grow and to become more diversified
in their operations. When we add to
this imposing list the tax-favored sav­
ings and loan associations and credit
unions, we must agree that the bor­
rower, whether he be a businessman
or a consumer, has a wide range of
selection. We have a job to do in
the field of credit to merit his choice.
The trend in bank deposits clearly
indicates that much of the future
growth will come from savings and
time deposits. It is evident that com­
mercial banks now hold relatively lit­
tle of the temporarily idle funds of
corporations. C o r po r at e treasurers
have taken advantage of good rates
for short-term loans. This has become
part of their operating practice; and,
therefore, it will probably continue,
regardless of the future level of in­
terest rates. Of more significance is
the fact that since corporations deW a y n e H um m er & Co.
CHICAGO

it o u a U F t r e
m tìi A ittm iu ib U r
n & f i i a n c e \ } j c m 'f i a r i t j
Estab lished

1900

HOME OFFICE, CEDAR RAPIDS, IOWA
J . E. Wilson, Pres.
P. A . Andersen, Secy.
Northwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

M EM BERS
N EW YO R K S TO C K EX CH A N G E

pend less upon bank credit, they no
longer feel impelled to carry sizable
demand deposit balances to support
loans or credit lines. Furthermore,
the use of improved equipment, the
development of lock box and other
direct collection plans and improved
billing methods have enabled corpo­
rate treasurers to do business with
substantially fewer bank accounts and
with substantially smaller supporting
balances. The development of nego­
tiable certificates of deposit was cost­
ly but necessary in order to retain
some corporate funds that otherwise
would have left the banking system.
Savings Deposits

The slow-up in the growth of de­
mand deposits, of course, was instru­
mental in reawakening the interest
of commercial bankers in savings de­
posits. This resulted in an increase
in promotional activity, along with
increases in the rates paid on the de­
posits. We can look forward to con­
tinued increases in savings deposits
and also further increases in certif­
icates of deposit and other forms of
time money.
The change in the composition of
our deposits has caused a substantial
adjustment in loan and investment
policies. This adjustment has been
reflected in increased purchases of
municipal securities, a strong move­
ment on the part of banks into the
home mortgage market and, of course,
increased installment lending to con­
sumers. This change has been ac­
complished by most banks soon
enough and to sufficient degree to
maintain the level of bank earnings
and thereby recapture the increased
cost of interest payments on deposits.
I would conclude that both the
near and long-term growth in banks
will come principally from the con­
sumer area in the form of savings
and other consumer services. We
face substantial competition in these
fields, particularly from savings and
loan associations and credit unions.
We operate at a considerable dis­
advantage because of their relative
tax-free status as well as their free­
dom from the more stringent regula­
tions and standards to which banks
must adhere.
I suggest we concentrate our atten­
tion on the problem of the new bank­
ing system that some people would
like to create in direct competition
with commercial banks under ground
rules that are manifestly stacked
against us. This is a serious matter,
and we should not be distracted from
it. Unity within our association is
absolutely vital to the success of our
efforts to keep commercial banking

55

*

*

^

moving forward as a dual banking
system within the framework of free
enterprise.
You will recall the experience of
the industry over the question of
tax uniformity. When several groups
went off in different directions and
tried to achieve uniformity in differ­
ent ways, the efforts were unsuccessful. However, when organized bank­
ing went to Congress with one
proposal supported by all bankers, it
was successful in getting a point es­
tablished. As you know, the Revenue
Act of 1962, which included the pro­
vision for taxing mutual savings institutions, was a result of a unified
effort.
This unity of purpose on broad
matters of interest to the entire in­
dustry has served us well in the past.
It will undoubtedly prove to be a
source of strength again as we face
the tide of change now confronting
the banking industry.

W
EM
ADE
CH
ECKPAPER
SAFE

Raises Surplus by $ 1 0 Million
^

The First Wisconsin National Bank
has increased its surplus account to
$40,000,000 by transferring $10,000,000
from its undivided profits account to
surplus, it was announced by William
G. Brumder, chairman of the board,
last month.

New Director in Detroit
f

Dwight L. Stocker, president of the
KVP Sutherland Paper Company, Kal­
amazoo, has been elected as a member
of the board of directors of National
Bank of Detroit.

»

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T A K IN G PAR T in an unusual autograph
session is Past President Harry S. Truman.
He is shown here signing his name on the
last piece o f steel which w ill go atop the
32-story Commerce Tower, Kansas City,
Missouri. Next to Mr. Truman is his
great-niece, M ary Truman, who is an em­
ployee o f Commerce Trust Company,
builders o f the Commerce Tower. Mr.
Truman was also once an employee o f the
bank. On the right is James Kemper, Jr.,
bank president.


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Federal Reserve Bank of St. Louis

THE

WAVY

TINCTIVE

GEORGE

LINES,®

THE

BASKETWEAVE

LAM ON TE

& SON

NAME

BASKETWEAVE®

LINES ARE

•

AND

THE

D IS­

LAMONTE TRADE-MARKS.

N UTLEY

10,

Northwestern

NEW

B an ker,

JE R S EY
N ovem ber,

1963

D IR E C T O R S
DE W A L T H. A N K E N Y
Vice President
Theo. Hamm B rew ing Co.
C H A R L E S H. B E L L
Chairman of the Board
General Mills, Inc.
B EN TO N J. CASE
Director
S. T. M cK night Co.
GEORGE B. C L IF F O R D , JR.
JO H N H. D A N IE L S
President
A rcher-D aniels-M idland Co.
TH O M AS L. D A N IE L S
Chairman of the Board
A rcher-D aniels-M idland Co.
D O N A L D C. D A Y T O N
President
The Dayton Co.
ST E P H E N P. D U F F Y
President
Our Own H ardw are Company
A L B E R T G. E G E R M A Y E R
Senior Vice President
C argill, Inc.
R O B E R T FA E G R E
President
M innesota and O ntario P aper Co.
B. C. G A M B LE
Chairman of Board
Gam ble-Skogm o, Inc.
P A U L S. GEROT
President
The Pillsbury Company
F. P E A V E Y H E F F E L F IN G E R
Chairman of the Board
The Peavey Co.
A L L E N S. KING
President
N orthern States P ow er Company
F R A N K P. L E SL IE
President
The John Leslie P aper Co.
GOODRICH L O W R Y
President
N orthw est B ancorporation
JO H N A . M O O R H EA D
President
JO H N S. P IL L S B U R Y , JR.
President
N orthw estern N ational
L ife Insurance Company
S A M U E L H. ROGERS
Senior Vice President and
Executive Trust Officer
H E N R Y T. R U TL ED G E
Executive Vice President
L U C IA N S. STRONG
Chairman of the Board
The Strong Scott M fg . Co.
HAROLD W . SW EATT
Chairman of the Finance
Committee
M inneapolis-H oney well
R egulator Company
H A R O L D H. T E A R S E
President
Searle Grain Co.
A L F R E D M. W IL SO N
Executive Vice President
M inneapolis-H oney well
R egulator Co.
O. M E R ED ITH W IL SO N
President
U niversity o f M innesota
JO H N S. P IL L S B U R Y
Director Emeritus

STATEMENT OF CONDITION
SEPTEMBER 30, 1963
R E SO U R C E S
Cash and Due from Banks.................. $155,678,360.37
U. S. G overnm ent O bligations............ 104,690,598.52
Other Bonds and Securities................. 34,488,497.14
Loans and D iscounts.............................. 327,837,499.15
Custom ers’ Liability on A cceptances
7,160,938.70
Incom e Earned but not C ollected......
2,287,529.56
Bank Prem ises, Furniture
and Fixtures ......................................
9,518,992.46
1,745,965.24
Other Resources ....................................

L IA B IL IT IE S
Capital Stock .......................................... $ 15,000,000.00
Surplus ...............
25,000,000.00
Undivided Profits .................................. 11,161,812.18
R eserve fo r Possible Future
Loan Losses .........................................
5,724,682,02
Reserve fo r Interest, Taxes, etc.........
4,354,834.83
Incom e Collected but not Earned......
5,263,921.68
Letters o f Credit and Acceptances....
7,160,938.70
Federal Funds Purchased..................... 10,000,000.00
D eposits .................................................... 559,742,191.73

Total R esources ..........................$343,408,381.14

NORTHWESTERN

NATIONAL

M A R Q U E T T E A V E N U E , S IX T H T O S E V E N T H


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Federal Reserve Bank of St. Louis

Total Liabilities ...............

STREETS

BANK

M EM BER

OF

$643,408,381.14

MINNEAPOLIS

F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N

57
plant in Rochester, have joined the
bank’s board of directors.
Dr. Mayo retired October 1 after 32
years on the Clinic staff. Mr. Thorn­
ton was among the first five men as­
signed to IBM Rochester shortly after
the corporation announced its decision
to locate in Rochester.

Minnesota

NEWS
t

T.

E. O LSO N

P resid en t

K.

A.

S ecretary

S ta rb u c k

Capital Stock Increases
W A LES

M inneapolis

637 Register

•Junior R a n k ers S et
NEW attendance record for the
Minnesota Bankers Junior Bank
Officer and Staff Conference was
tained when 637 delegates registered
for the annual meeting last month at
the Radisson Hotel, Minneapolis.
The 14th “Junior Bankers” confer­
ence featured a variety of speakers
and subjects in a full-day program pre­
ceded by a social hour and buffet on
the evening before.
In the opening morning session Min­
nesota Bankers Association President
Thomas E. Olson, Starbuck, chal­
lenged the junior officers and bank
staff members to set goals for them­
selves, to have inquiring minds, and
to learn and improve themselves.
The threat of non-taxed, cooperative
forms of bank competition was discussed by David M. Molthrop, con­
sultant on community education with
the National Small Business Associa­
tion, Washington, D. C.
National A m e r i c a n Institute of
Banking Vice President N. A. Moore,
Jr., emphasized the vital need for
well-trained bankers in the years
ahead in his talk “You Decide—Model
T or Thunderbird.”
Closing the morning session Rever­
end Henry N. Hancock, dean of St.
Mark’s Cathedral, Minneapolis, spoke
on the values of the American way of
life too often taken for granted by
many Americans. Dean Hancock was
born in Wales and lived most of his
life in Great Britain.
Lynn B. Duncan, chairman of the
MBA-A.I.B. Educational Committee,
recessed the program at 11:30 a.m.
At the noon luncheon, with A.I.B.
Executive Councilman Arthur A. Erpelding presiding, Minnesota Vikings
Quarterback F r an T a r k e n t o n dis­
played his speaking ability as he dis­
cussed professional football. Mr. Tar­
kenton spoke on the importance of
competitive athletics in the develop­
ment of young people and described
his three sessions with the Minnesota
Vikings Football Club. The talented
quarterback fielded several questions

A

^

*

*

*

*

A


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Federal Reserve Bank of St. Louis

from the floor before having to leave
for afternoon practice with his team.
at­William R. Chapman, president of
Midland National Bank, Minneapolis,
opened the afternoon business session
at which A.I.B. Associate Councilman
J. P. Delmore presided. Mr. Chapman
told the delegates of the many im­
provements in bank operations which
require special training and alertness
by modern bankers.
“ Practical Public Relations Ideas for
Bankers” was covered by a group of
three Minnesota bankers, all members
of the MBA Public Relations Commit­
tee. PR Committee Chairman Donald
H. Gregerson, Anoka, handled “Public
Relations in Banking” ; “Community
Relations” was the topic of Myron J.
Ellingson, Kenyon, and Oliver B.
Rekow, Montevideo, discussed “ School
Relations.”
Winding up the program was Clay­
ton Rand, editor of The Dixie Guide,
Gulfport, Miss., with a stimulating
and inspirational address, “And Jo­
seph Dreamed.”

Rochester Appointments
The First National Bank of Roches­
ter recently announced that Dr. C. W.
Mayo, emeritus Mayo Clinic surgeon,
and James J. Thornton, controller of
the International Business Machines

The State of Minnesota Department
of Commerce Banking Division, has
authorized these increases in capital
stock: The Park Plaza State Bank of
St. Louis Park, from $125,000 to $150,000 by sale of new stock. State Bank
of Kerkhoven from $50,000 to $75,000
by stock dividend.

Seek Lexington Charter
An application for a state bank
charter to establish a bank in Lexing­
ton was recently submitted to the
State Commerce Committee. Request­
ing the charter were: Mildred Huse,
Arthur Otte, Lorenz Seutter, and Rich­
ard Meyers. The bank is to be capi­
talized at $200,000. Proposed location
is in the Northway Shopping Center.

Duluth Retirements
Robert Wisniewski and George Boberg, long time staff members of the
First American National Bank of Du­
luth, have taken early retirements.
Mr. Wisniewski has been with the
bank since 1923 and was savings de­
partment manager. Mr. Boberg, with
the bank for 38 years, was a teller in
the investment service department.

New Wayzata Cashier
R.
E. LaFrance has been named
cashier of the new North Shore State
Bank in Wayzata. Mr. LaFrance has
been cashier of the Columbia Heights
State Bank since 1960. Cal Olson is
president of the newly organized
bank.

S w if t C o u n t y C o n s t r u c tio n

TH IS MODERN structure is the new home o f the Sw ift County Bank at Benson, Minn.
An open house was recently held to celebrate the opening o f the new building.
Northwestern Banker. November, 1963

58

♦

WO officials of the First National Northwestern State Bank, according amounted to $12,358,692, up 2.6 per
Bank of Minneapolis with a total to Lawrence R. Peterson, bank presi­ cent from the $12,048,646 reported for
the first nine months in 1962. After
dent.
of 90 years experience in finance, re­
In his newly-elected capacity, Mr. preferred stock dividends, earnings
tired recently, to wind up their long
Johnson follows in the footsteps of his were equal to $2.21 per share on 5,568,banking careers.
They were Assistant Vice President father who was a former board mem­ 986 common shares. This compares
Thomas A. Roden of the trust depart­ ber and vice president of Camden with $2.20 per share earned last year ^
ment and Vice President Cecil A. Park State Bank prior to his death in in the first nine months on 144,421
fewer common shares outstanding.
Burnham of the commercial depart­ 1923.
* * *
The larger number of common shares
ment.
Northwest Bancorporation increased results primarily from conversion of
Mr. Roden has been in banking
since 1915 and with First National the regular quarterly dividend on its the 4.50 per cent preferred stock into
since 1943. He was assistant secre­ common stock to 35 cents from 32% common stock following the call for
tary from 1947 to 1957, when elected cents and also declared an extra divi­ redemption of the preferred stock an- *
dend of 2% cents per share, it was an­ nounced July 24, 1963, effective on
assistant vice president.
Mr. Burnham started his banking nounced following the regular board September 19, 1963.
* * *
career in 1921. He was elected assist­ of directors’ meeting.
More than 250 students from 17
The total dividend amounts to 37%
ant cashier in 1942, assistant vice
president in 1943 and has been vice cents per share and is payable Decem­ M i n ne a po l i s and suburban high
ber 1, 1963, to stockholders of record schools attended a recently one-day
president since 1947.
November 1, 1963. Common dividends Finance Forum for high school sen- 4
* * *
Howard H. School, vice president for 1963 total $1.35 per share as com­ iors conducted by the First National
Bank of Minneapolis. Speakers in­
and cashier of the Northwestern State pared with $1.30 per share for 1962.
The interim report of the corpora­ cluded representatives from the Uni­
Bank of Northfield, has resigned his
tion and affiliated companies covering versity of Minnesota, Macalester Col­
position. He has taken a position of
operations for the first nine months of lege, St. Paul; the Minneapolis Grain
executive vice president and cashier
1963 was also released.
Exchange, the Minneapolis Credit
of the newly chartered Southview
Consolidated net operating earnings Exchange and the First National.
State Bank, Ninth and Southview,
South St. Paul.
Burton Paulsen, assistant cashier,
has been appointed as the new man­
ager of the Northwestern Insurance
Agency. He has been with the bank
since 1949.
* * *
The Saint Paul Chapter American
Institute of Banking, Women’s Fall
Party, was held in the Lowry Hotel
Ballroom last month.
The main attraction was “gam­
bling” on the various games of chance
in a Las Vegas atmosphere with
A.I.B. male members serving as crou­
piers. One hundred thousand dollars
in play money was provided to par­
ticipants with which to gamble at
poker, black jack, roulette, etc. Prizes
were given to winners. An additional
$50 door prize was awarded.
FINANCE FORUM at the First National Bank o f St. Paul was climaxed recently by a
* * *
tour o f the bank. Above, the bookkeeping operation and check handling is explained to
Roy E. Johnson, president of Me- tour members by Don Lindeman, First National staff member. More than 850 Saint
Paulites enrolled in the forum which was held on five successive Wednesdays in two
reen-Johnson Machine Company, has sessions—one in the morning for homemakers and another in the evening open to both
been elected a director of Camden men and women.

T

T ou r C om p letes

N orthw estern

Banker,

N ovem ber,


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Federal Reserve Bank of St. Louis

19 63

59

Trust officers Bill Wallman, John Montgomery and Glenn Johnson demonstrate Midland’s take-home trust service.

P o r t a b le

t r u s t

t e a m

M idland’s Trust D epart­

ment is available anytime for personal conferences with you, your
customers and their attorneys on all phases of trusts and investments.
W e can meet here at M idland, or if you prefer, we’ll com e to your
bank. Call your meeting anytime. W e ’ll be there, proving friendship
with special service.

THE

with the big welcome

M id la n d N a t io n a l B a n k
F E d e ral 2-0511 • 2nd A ve. So . and 4th S t., M inneap olis 4 0 , M inn.
M e m b e r Federal Deposit In surance C orporation


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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1963

60

M innesota

News

Proctor Elections
Mrs. Leo Berlin has been elected
cashier of the First National Bank of
Proctor, it was announced recently by
the bank’s board of directors. Also,
Sandra Lambert and Charlene Brock­
way were made assistant cashiers.

Moorhead Appointments
Three appointments were made re­
cently at the First National Bank of
Moorhead. Curtis J. Johnson, who
has been assistant agricultural repre­

sentative, has been named assistant
cashier and agricultural representa­
tive.
Paul T. Tellefson, who has been au­
ditor, was promoted to assistant cash­
ier.
Kermit C. Alveshere^ who has been
with the Dakota National Bank of
Bismarck, joined the staff as assistant
cashier in charge of the real estate
loan department.
Mrs. Lois Arnston, formerly assist­
ant auditor, was named auditor.

North Branch Celebration
The employees of Merchants State
Bank of North Branch recently held
a gala 60th anniversary celebration.
Staff members dressed in the attire of
the year 1903 in observance of the
event.

New Virginia Directors

f

W. A. Fisher and Mario Casagrande
have been appointed to the board of
directors of the State Bank of Vir­
ginia.
Mr. Casagrande, president and ac­
tive manager of the Mesabi Tire Com­
pany of Virginia, has been a resident f
of Virginia for over 40 years. During
this time he has been active in other
business enterprises, also a distributor

w. A. F I S H E R
M. CASAGRAN DE
of the Grain Belt Brewing Company
for 18 years prior to his entry into the
tire business.
Mr. Fisher, treasurer and founder of
the W. A. Fisher Company, has been
a resident of Virginia since 1922 when
he purchased a business known as the
Quick Print and at that time he
formed the W. A. Fisher Company. In
1936 he established the first complete­
ly self-contained lithographing depart­
ment north of the Twin Cities.

Rochester Appointment

L IV E

S TO C K

N A T IO N A L

B A N K
SIOUX CITY

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

MINNESOTA NEWS . . .

(Turn to page 64, please)
Northwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

<

R. A. Bezoier, president of The First
National Bank, Rochester, announced
t h e appointment
o f F r a n k l i n S.
Ruhl as trust offi­
cer. Mr. Ruhl as­
sumed his duties A
as head of the
trust department
on October 15. He
comes to Rochest­
er f r o m Cedar
Rapids,
Iowa,
w h e r e he has a
been a trust of­
ficer at the Merchants National Bank
since 1958. Prior to that time he was
employed in the trust department at
the La Salle National Bank in Chicago
where he had been since 1952.

61

Watertown Expansion

South Dakota

NEWS
4

SCO TT
A.

S.

LO V A L D
G U L L IC K S O N

Philip

P resid en t
S ecre ta ry

Huron

1.7/h M a n a g e m e n t C o n fe re n c e
. H e l d in H u r o n N o v e m b e r .#
HE 15th annual Bank Management
Conference of the South Dakota
T
Bankers Association was held Novem­
ber 5 at the Marvin Hughitt Hotel in
Huron.
F e a t u r e d sp ea ke r s were Merle
^ Stone, vice president and comptroller,
American National Bank, St. Paul;
William P. Ronan, president, Decorah
State Bank, Decorah, Iowa, and Rob­
ert W. Williams, vice president, La­
Salle National Bank, Chicago. Mr.
Stone discussed “Automation for the
> Country Bank,” Mr. Ronan outlined
“ Ten Steps to Increase Bank Earn­
ings” and Mr. Williams presented
“New Ideas in Banking.”
Another portion of the program was

M. V. S T O N E

R. W I L L I A M S

w.

P. R O N A N

DR. J. E A R L Y

devoted to a panel discussion by par­
ticipants in the recently concluded
Economic C o n f e r e n c e for Y o u n g
Adults. Students attending this con­
ference gave an evaluation of the pro­
gram.
The afternoon of the one-day man> agement conference was devoted to
workshop sessions. Persons attending
the conference were divided into three
Northwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

groups. Moderators for the groups
were C. F. Stilgebouer, C. C. Lind and
A. Boyd Knox, all past presidents of
the South Dakota Bankers Associa­
tion.
Late in the afternoon all partici­
pants reconvened in a general session
for reports by the group moderators.
A social hour, banquet and address
by Dr. Jack Early, president, Dakota
Wesleyan University, Mitchell, S. D.,
completed the program.

N.A.B.A.C. Clinic
An N.A.B.A.C. Operations and Con­
trol Clinic was held at Mitchell, S. D.,
last month. It was conducted jointly
by the Central Dakota and Southeast­
ern Dakota Conferences of N.A.B.A.C.
The program featured talks by Delmar Boyd of Farmers and Merchants
Bank, Huron; D. W Cotton, First Na­
tional Bank, Miller; Herman Terdal,
Dakota State Bank, Baltic, and Jack
Bork, Sioux Valley Bank, Sioux Falls.
A total of 29 banks had representa­
tives at the meeting.

Lead Remodeling;
19tli Century Theme
A major remodeling program, based
on a 19th century theme, has been
scheduled for the Lead office of the
First National Bank of the Black Hills,
President Harold R. Horlocker an­
nounced recently.
Mr. Horlocker said the exterior of
the building will remain essentially
the same, but the interior will be com­
pletely changed to allow for additional
customer space, more tellers’ windows
and more room for the bookkeeping
department.
W. J. Schoen, vice president and
manager of the branch said, “While
the bank’s operations will be com­
pletely modern, the interior decorative
effect will be that of a 19th century
bank, with fixtures, drapes^ paneling
and carpeting conforming to the bank­
ing institutions of more than a halfcentury ago.”

R. H. Walrath, president, First Citi­
zens National Bank, Watertown, S.
D., has announced that contracts have
been awarded for the construction of
an additional drive-in facility, an en­
closed walk-up window and customer
parking facilities.
The drive-in facility will be directly
north of the present banking quarters
and will require the removal of two
buildings. Immediately to the east,
the bank will expand and enlarge its
installment lending department. The
real estate and insurance departments
also will be located in this newly re­
modeled and expanded area.

Construction Starts
On Stockyards Branch
Jack H. McMillan, vice president
and manager of the Northwestern Na­
tional Bank’s Stockyards Branch in
Sioux Falls, announced last month
that construction is well under way
on a new building for the branch.
This building, to be located on Rice
Street, just east of the present loca­
tion, will include a spacious lobby,
large officers’ area with private con­
ference rooms, a drive-in window,
night depository, safe deposit vault,
and a tellers’ area with four teller
positions available. A large customer
parking area will adjoin the building.
The new building will measure 53
by 65 feet and will be one-story with
brick construction.

Winner Construction
The recently chartered Ranchers
National Bank in Winner, is com­
pleting work on its new building. The
building will have about 7,200 square
feet of floor space and will feature a
drive-in window and night deposi­
tory facilities.

G i f t f o r Q u in t u p le t s

Kathryn O’Hay Granahan, Treasurer o f
the United States, autographs the first of
five $1 bills for C. C. Lind, president o f
the First National Bank o f Aberdeen, S.
D., for presentation to the Fischer quin­
tuplets o f Aberdeen. The First National
Bank is assisting in handling financial a f­
fairs for the five tots.

62

South

Dakota

News

First of Sioux Falls
Plans Drive-In Unit
A new drive-in facility is being add­
ed to the First National Bank of Sioux
Falls. The brick structure will be 143
feet long and nine feet wide. It will
include four teller stations. The $65,000 facility is to be completed by Jan­
uary 1.
Additional parking is part of the im­
provement program, and still in the
planning stage is an addition to the
one-story portion of the bank building.
A new rear entry also is to be con­
structed.

On Watertown Staff
Jerry Miller has joined the trust de­
partment of the First Citizens Na­
tional Bank, Watertown, S. D., suc­
ceeding Robert P. Kelley, assistant
trust officer.
Mr. Kelley left the bank to enter
private law practice at Lemmon, S. D.
Mr. Miller has been with the bank
since 1961 and recently completed a
program of serving in all departments
of the bank.

New A.I.B. Group
Yankton area bankers have started
a new American Institute of Banking
Study Group. At the initial meeting
recently, Erhardt Schempp, First Da­
kota National Bank, was elected chair­
man of the group. Leo Plank, Ameri­
can State Bank, will act as co-chair­
man, and Marilyn Olson, Gayville
Bank, as treasurer.
Thirty-four bankers will attend class

in bank operations taught by Russell
Knudsen, cashier, A m e r i c a n State
Bank, and A. Bedner, economics
teacher.
Speaker at the initial meeting was
John V. Krastins, Northwestern Na­
tional Bank of Sioux Falls, associate
councilman of A.I.B. for the state.

S.D.B.A. Wins Award
The South Dakota Bankers Associa­
tion has been awarded the annual Ag­
ricultural Award by the agricultural
committee of the American Bankers
Association. This is the 27th year
the South Dakota association has re­
ceived the award.

2 0 0 at Conference
More than 200 persons attended the
second annual Economic Conference
for Young Adults held in Huron last
month by the South Dakota Bankers
Association and Paul S. Amidon & As­
sociates of Minneapolis. Students from
throughout the state, picked by their
local high school officials and spon­
sored by local banks, participated in
the two-day lecture and workshop dis­
cussion series.

White Lake Building
The Farmers and Merchants State
Bank, Plankinton, S. D., has an­
nounced the awarding of contracts for
the construction of a new building for
its branch at White Lake.
The new building will have 2,800
square feet of floor space and will be

constructed of block and stone. It will
feature a community room in the base­
ment.

Wessington Springs
Construction Planned
Plans for constructing a new bank
building on its present site in Wes­
sington Springs have been announced
by The National Bank of South Dako­
ta. Details of the building have not
been announced. Present b a n k i ng
quarters will be demolished to make
way for the new stucture.

Joins Yankton Staff
James I. Dean has joined the staff
of the American State Bank of Yank­
ton, S. D. His immediate duties in­
volve the preparation for a move to
new quarters now under construction.
He is a veteran of 25 years in banking
and will assume an active part in over­
all operation of the bank.

New Vermillion
Farm Representative
Vernon A. Brose has joined the staff
of the National Bank of South Dakota
in Vermillion, S. D., as farm represent­
ative. He is a veteran farmer and has
experience as an associate county
agent. He has served also as a farm
management instructor.

Moves to New Quarters
The First State Bank, Pierpont, S.
D., moved into its new quarters last
month. The new building is 35 by 50
feet and is constructed of haydite
block with brick facing.

On A.I.B. Board
Norm Grosz of the First National
Bank in Sioux Falls recently was
named to the board of governors of
the Sioux Falls Chapter, American In­
stitute of Banking. He replaces Con­
rad Otterness, who has transferred to
the Corsica branch of the National
Bank of South Dakota.

50tli Anniversary
The First National Bank of Beresford, S. D., last month observed its
50th anniversary. A open house was
held marking the event.

Eureka Remodeling
Extensive remodeling got under­
way at the Eureka State Bank, Eur­
eka, last month. The first floor of
the building is being completely re­
novated. Completion is expected by
December 2.
Northwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

63

Enduring As Rushmore

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Our Bankers Participation Plan
Offers You A Money-Making
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affiliation with our time-tested Bankers Participation
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today—a splendid opportunity to make genuine profits.
I extend you a sincere personal invitation to write me.
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about the profit-making features of our popular Bank­
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TOPEKA


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Federal Reserve Bank of St. Louis

SIOUX

FALLS

Northwestern

B an ker,

Novem ber,

19 63

64

South

Dakota

News

Aberdeen Changes
S. H. Larsen, vice president, First
National Bank of Aberdeen, was
elected to the board of directors, and
C. L. “Bud” Koch, vice president,
was named vice president and cash­
ier.

Herreid Remodeling
Remodeling work is well underway
at the Campbell County Bank, Her­

reid, S. D. A new ceiling, new light­
ing, a new heating system and com­
plete remodeling of the interior are
included in the project.

Building Progress
“Topping out” of the new National
Bank of South Dakota building in
Sioux Falls was completed two weeks
ahead of schedule. Steel framing has
been completed on the 10-story build­
ing.

"Strong frien d o f the
Independent Banker!

F Ed ero!

3-5411

MARQUETTE
O F M IN N E A P O L IS

MINNESOTA NEWS . . .
(Continued from page 60)

New Stewart Cashier
John W. Lipke was selected cashier
of the First State Bank, Stewart, re­
cently. He was promoted from assist­
ant cashier.

Mankato Staff Changes
Glenn M. Thompson has been pro- f
moted to new accounts man and di­
rector of bank public relations by the
First National Bank of Mankato. Wil­
liam R. Buethe, assistant cashier, has
resigned to become assistant branch
manager of the Southern Arizona Na­
tional Bank at Phoenix, Ariz.
*

Swift County Relocation
Official opening of the Swift County
Bank, Benson, took place during a rib­
bon cutting ceremony recently, with
G. L. Bryan, state commissioner of
banks, officiating.
4

Vergas Remodeling
Work has begun on a remodeling
and enlargement program at the Ver­
gas State Bank building.
A new walk-in vault for safety de­
posit boxes and a small private cus- *
tomer room are planned, while the
old front office will be turned into a
private office and a new teller window
counter will extend across the lobby
facing the entry way.

LOOKING FOR A
CORRESPONDENT

Anoka Appointment
Eldon C. Miller, 23, has been named
assistant cashier at the State Bank of
Anoka, it was announced recently.
Mr. Miller will serve in the install­
ment loan department of the bank.
He has been with the bank since 1960.

BANK IN TH E
M ID-CONTINENT
AREA?

T h i n k ..
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AND TRUST COMPANY
TU LS A, OKLAH OMA

ACCIDENT, SICKNESS and HOSPITAL
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designed for Bank Men and Women. Write for Application
and Information.

Minnesota Commercial Men’s Association

2550 Pillsbury Ave. S.

Northwestern Banker, November, 7963


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Federal Reserve Bank of St. Louis

Minneapolis 4, Minnesota

ABA Past President M. Monroe Kimbrel
was in the Twin Cities recently for a t
speech before the National Convention of
County Agricultural Agents and a meeting
of the Minnesota Bankers Association
Federal Legislative Committee.
Pictured with him are Thomas E. Olson
(le ft), president o f the Minnesota Bank­
ers Association and executive vice presi­
dent o f the First National Bank, Starbuck,
and M BA Federal Legislative Committee 4
Chairman William G. King (right), presi­
dent o f the First National, Grand Rapids,
and a former M BA president.

65
annual North Dakota Teachers Con­
vention, held in Bismarck at the same
time as the Southeast group meeting
of the North Dakota Bankers Asso­
ciation.

North Dakota

NEW S

Garvin M. Olson
O . K. A N D E R S O N

P resid en t

L a k o ta

*
W . J . D Â N ER

S ecretary

Bism arck

\

J

Iii North Dakota

«

5 3 0 A t t e n d G r o u p M e e tin g s
ORE than 530 persons attended
the four North Dakota Bankers
Association group meetings last month
in Bismarck, Minot, Fargo and Grand
Forks.
Following are the newly elected:
Northwest Group—President, W. S.
Raymond, president, Citizens State
Bank, Ray; vice president, Frank A.
Grim, cashier, Farmers State Bank,
Crosby; secretary-treasurer, Robert L.
Barstad, cashier, First State Bank,
Harvey, and a member of the state
nominating committee, J. H. Munn,
vice president, Peoples State Bank,
Westhope.
Northeast Group—President, J. H.
Engesather, cashier, Cititzens State
Bank, Petersburg; vice president, Ed­
ward L. Olson, vice president, First
National Bank, Grand Forks; secre­
tary-treasurer, Gordon Larson, presi­
dent, First State Bank, Park River,
and member of the state nominating
committee, Philip G. MacMillan, presi­
dent, McVille State Bank, McVille.
Southeast Group—President, R. T.
Carley, president, C a sselton State
Bank, Casselton; vice president, Gor­
don Weber, president, Farmers State
Bank, Lisbon; secretary-treasurer, H.
F. Buegel, Jr., vice president, James­
town National Bank, Jamestown, and
member of the state nominating com­
mittee, D. W. Palmer, president, Fargo
National Bank, Fargo.
Southwest Group — President, Ed­
ward Dahlen, executive vice president,
Mandan Security Bank, Mandan; vice
president, Edward Vukelic, assistant
cashier, Commercial Bank of Mott,
M ott; s e c re ta ry -tre a su re r, Lloyd
Kempf, president, Grant County State
Banuk, Carson, and member of the
state nominating committee, Wilbur
E. Summers, vice president, First Na­
tional Bank, Dickinson.

M

^

y

^

^

Maddock Bank Sold
»

A transaction which has been in the
planning stage for sometime was com­
pleted recently when the stock of the


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Federal Reserve Bank of St. Louis

Garvin M. Olson, 66, vice president
of Farmers and Merchants National
Bank in Hatton, died in an area hos­
pital recently. He had been ill for
some time.
Mr. Olson became associated with
the bank in 1920.

Verne Wells
Farmers State Bank of Maddock was
sold to new owners.
Members of the new board of direc­
tors are: George Heitmann, Mrs.
George Heitmann, Raymond Sharkey,
James Williams, Waif Gehrts, Ansel
Haukness^ and Harold Kenner.
Mr. Heitmann has been elected pres­
ident of the bank; Mr. Sharkey was
elected vice president and cashier.
Former officers and directors are
Myrtle Anderson, a director; John E.
Davis, vice president and director;
Pauline Davis, wife of John E. Davis,
a director; A. L. Garnaas, L. B. Garnaas, Olaf Monson, and Mrs. Maybelle
Monson.

Funeral services were held recently
at Robinson for Verne Wells, 74, presi­
dent of the Security State Bank of
Robinson. He died September 19 in
a Bismarck hospital.
Mr. Wells was born in Iowa and at­
tended college at Beloit, Wis. In 1922
he established the Robinson bank.

Minot Open House
The Union National Bank of Minot
recently held an open house to cele­
brate the completion of a new bank­
ing facility.

Plan Ag Conference
Plans were announced last month
for the second annual Agricultural
B.
P. McCusker, president of Citi­
Credit Conference sponsored by the
zens First National Bank in WahpeNorth Dakota Bankers Association. It
ton, has been presented with two
will be held December 5, 6 and 7 at
awards in three days for his outstand­
the Hotel Gardner in Fargo.
ing contributions to his community.
Chairman of the conference is R. P.
Recently he was named to receive
Pederson,
executive vice president,
the North Dakota State School of Sci­
ence Hall of Fame award at the col­ First State Bank, Hope.
lege’s annual homecoming. Previously
he was named Citizen of the Year at
New Vault Door
the Chamber of Commerce meeting.
A new three and one-half inch vault
door is now available from Peco-McFargo Bank Elects
Clintock Corporation, Hopkins, Minn.
Paul D. Graham, with the West Designed for use by financial institu­
Fargo State Bank for 10 years, has tions of all types, the door complies
been elected assistant cashier. He has with the Underwriters’ manual for
been in the installment loan depart­ vault classification number 6.
ment and will continue there.
The 32 by 78 inch vault door has
three and one-half inches of burglaryBond Awards Given
resistant steel and has a one-piece
The names of four elementary solid steel door edge of seven-inch
teachers in the schools of North Da­ thickness. A stainless steel day gate
kota were drawn as winners of a $25 of attractive design is provided com­
savings bond each as a result of a plete with thumb latch and key lock.
promotion to focus attention on the
The door operates with a threeneed to teach thrift to youngsters. movement Yale & Towne “anti-con­
This is an annual event sponsored cussion” time lock of 120 hours dura­
by the North Dakota Bankers Asso­ tion and is equipped with 16 operating
ciation and the Savings Bonds Di­ steel locking bolts, two inches in diam­
vision of the Treasury Department. eter, with pressure system and oper­
Winners were selected during the ating handle.

Receives Awards

Northwestern Banker, November, 1963

66

AT
o problem

istoo small to receive
our personal attention

WHEN YOU HAVE A DELICATE PROBLEM you don’ t have to needle
our staff o f specialists at Denver U. S. for the answer. Just pick up the
telephone and George Alff, Don Whiteman, or Don Ferrel will see
that you get the personal attention of the right people.
The number in Denver is 244-8811.

" th a t's

MEMBER
F DI C

th e

b a n k

fo r

m

y

m

«

o n e y j*

4

DENVER U.S.
N

A

T

I

O

DENVER

Northwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

N

A

U .S . C E N T E R

L

B

D e n v e r 17, C o lo ra d o

A

N

K

67

Colorado-Wyoming News
K. M. H A L L , C olorado Spring s
P residen t
C o lo rad o Bankers A ssn .

Denver Appointment
Don M. Whiteman, a vice president
of the Denver U. S. National Bank, has
been appointed to specialize in servic­
ing of correspondent banks in the Den­
ver and immediate trade areas. He
has been in correspondent work for 10
years.

Boulder Expansion
W . F . M E S S E N G E R , C ody
P resid en t
W yom in g Bankers A ssn .

Denver Appointments
Edward Boehm and Gary A. Sinner
have been appointed assistant cash­
iers for the American National Bank
of Denver in the expanding install­
ment loan department.
Mr. Boehm, a native of Illinois, was

E. B O E H M

G. A. S I N N E R

graduated from Graceland College, Lamoni, Iowa, and has served in the U.
S. Army.
Following his discharge, Mr. Boehm
became associated with the Denver
Clearing House Association as a bank
examiner. He joined the American
National Bank in 1959.
Mr. Sinner, formerly of Nebraska,
graduated from the Colorado School
of Commerce and has been a member
of the U. S. Armed Forces.
Prior to joining American National
Bank in 1962, Mr. Skinner was associ­
ated with the Securities Acceptance
Corporation in Denver.

porary location until it moves to the
new building sometime early in 1964.
At that time it will add to its facilities
and services a fully sheltered drivethrough banking area.
Serving as president of the bank is
Don Carney, who is also president of
the First National Bank of Engle­
wood; president of the Lakeside Na­
tional Bank; a director of the Univer­
sity Hills Bank and Evergreen State
Bank; and a director of Security Life
and Accident Company. He is exec­
utive vice president of First Colorado
Bankshares Inc., the first bank hold­
ing company established in the state.
Charles H. Smukler will serve as
vice president of the bank. He is also
assistant secretary and assistant treas­
urer of First Colorado Bankshares Inc.
J. Kernan Weckenbaugh is chairman
of the board.

Bank Increases Funds
Bank of Denver is adding $320,000
to capital funds through a stock off^1to present shareowners. Ten thous­
and shares of $10 par stock were of­
fered at $32 a share.

Boulder’s M e rca n tile Bank and
Trust Company has announced plans
for an extensive expansion, including
a building program and a capital stock
offering.
Expansion plans call for the con­
struction of added floor space, with to­
tal cost of $100,000.

Denver Firm Expands
The Denver investment banking
firm of Bosworth, Sullivan & Com­
pany is marking its 47th birthday
with a forward thrust into a new
phase of expansion. The current ex­
pansion program supplements a major
remodeling and expansion program
started in 1960 which added 50 per cent
more floor space and provided a large
electronic quotation board and other
new communications equipment.

Acquire Alamosa Interest
Acquisition of a substantial interest
in the Alamosa National Bank in Ala­
mosa, in the amount of $1,240,000 was
announced recently by Lawrence and
Stegall R anches, Inc., of Phoenix,
Ariz.
The bank is the largest in Colorado’s
San Luis Valley where the Phoenix
firm recently purchased the 180,000acre historic Luis Maria Baca Grant

O p e n s T - V B a n k F a c ilit i/

Cherry Creek Promotion
Jerome B. Woods has been promoted
to vice president of Cherry Creek Na­
tional Bank by Welton B. Hamilton,
bank president.
Mr. Woods joined Cherry Creek Na­
tional Bank in 1940 and has been in
the loan department. He will con­
tinue specializing in commercial loans.

Denver Bank Opens
Security National Bank of Denver,
soon to be located in the $14 million,
31-story Security Life Building, re­
cently opened its doors in temporary
quarters.
The bank will remain at the tern
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Federal Reserve Bank of St. Louis

NEW TV AUTO BANK was opened recently by the First National Bank, Glenwood
Springs, Colo. This Mosler facility is the first television drive-in facility in Colorado.
It utilizes two Mosler TV Auto-Banker systems.
Northwestern Banker, November, 1963

68

W yom ing News

Ranch from the Newhall Land and
Farming Company of Castaic, Calif.
The bank has been operated since
1934 by Harry W. Zacheis who will
continue as president. All other bank
officers, directors and employees will
be retained, according to Lawrence
and Stegall.
Frank Bunts of Salida, Colo., has
been appointed a senior vice president
of the bank to assist Mr. Kacheis with
administrative duties.

Denver Promotion
Rahe H. von Hoene has been pro­
moted to vice president and trust offi­
cer at the American National Bank of
Denver.
Mr. von Hoene was a trust officer
with the Denver U. S. National Bank
before joining American National, and

prior to that was associated with The
First National Bank of Cincinnati,
Ohio.

and later will move to a permanent
building in a regional shopping center
a short distance away in North Glenn.

Seek North Glenn Bank

Joins Golden Bank

An application for establishment of
The First National Bank of North
Glenn has been approved by the
Comptroller of the Currency in Wash­
ington.
Announcement of the approval came
from Eugene H. Adams, president of
The First National Bank of Denver,
who also will head the new bank.
The bank will become an affiliate of
The First National of Denver and
will have a total capital of $425,000.
The bank will have temporary quar­
ters, including drive-up facilities, at
W. 104th Avenue and the North Val­
ley Highway. It will open in late fall

W y o m in g N e w s
Joins Lander Bank
Irvin R. Poynter has joined the staff
of the Lander State Bank as assistant
cashier. He is 41 and has had seven
and one-half years of banking expe­
rience, coming from Belgrade, Mont.

New Glenrock Bank
The newly-chartered First National
Bank of Glenrock recently opened for
business in its new quarters. The
quarters, formerly a sweet shop, has
been remodeled and now contains
four tellers’ cages on the ground floor,
one drive-up window, and directors’
and employees’ rooms on the second
floor.

Seek Tri-City Charter
A group of Tri-City (Guernsey, Sun­
rise and Hartville) businessmen have
petitioned for a charter to establish
and carry on a general banking busi­
ness in Guernsey. Seeking the appli­
cation for the state chartered bank
are Bob Winship, Glen Gorman, Tony
Testolin, Gene S ta pleton , Harvey
Boner and Chet Frederick.

Cheyenne Board Named
A 12-member temporary board of
directors was chosen recently for the
new East Cheyenne National Bank.
The bank opened October 15.
Robert W. Gravatt, vice president of
the Cheyenne National Bank, was ap­
pointed executive vice president. The
bank will be an affiliate of the down­
town Cheyenne National, according
Northwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

to A. H. Trautwein, Cheyenne Nation­
al president. Marvin Nix, formerly
of Greeley, is vice president and cash­
ier, and Bill Cahler, also of Greeley, is
assistant cashier.
A temporary building houses the
bank at East Lincolnway and Con­
verse.

Bear on Display
The Shoshone First National Bank
of Cody is displaying a huge eight
and one-half foot Alaskan Brown (Ko­
diak) bear in its main lobby. The
mounted bear wears $1,250 pounds.

Clifford L. Pike has joined the staff
of the First Na­
tio n a l Bank in
Golden and will
be in charge of
the customer re­
la tio n s d ep art­
m e n t , according
to an announce­
ment recently by
bank P re sid e n t
John Fortune.
Mr. Pike’s du­
C. L. P IK E
ties w i t h the
First National will be primarily the
introduction of the bank’s new BankRoll Plan for business customers.

Casper Grand Opening
The Security Bank & Trust Com­
pany in Casper recently opened the
doors of its new building. Visitors
swelled inside to receive checks good
for a “million dollars’ work of good
luck” from Hollywood start Marvin
Miller. Mr. Miller, known for years
as “ Michael Anthony” on the elevision
series “The Millionaire,” appeared in
the bank lobby during the opening
celebration.
Besides touring the striking new
banking facilities at the bank, guests
also registered for drawings of prizes
of interest on $1 million for one day.
About 50 accounts were opened dur­
ing the observance, although no spe­
cial appeal was made for new busi­
ness.

Bank Gets $ 4 0 0 ,0 0 0
The stock subscription drive for the
American National Bank of Powell
has gone over the top Ross Copenhaver, correspondent for the bank ap­
plication, reported recently.
A meeting of the bank’s directors
and stockholders was held and sub­
scriptions of $400,000 were totaled.

Joins Riverton Bank
Ronald L. Davis has been appointed
assistant cashier at the First National
Bank of Riverton it is announced by
Harmon H. Watt, First National pres­
ident.
Mr. Davis, who will specialize in ag­
ricultural loans, comes to the bank
from Cheyenne where he was em­
ployed for the past two years as plant
superintendent at the Plains Dairy
there.

N. Y . Deposits at New Peak
Following further revision of Regu­
lation Q on July 17, New York City
banks increased their deposits to rec­
ord levels during the third quarter of
1963. Daily net demand and time de­
posits of the 11 New York Clearing
House Association Banks averaged 9.3
per cent above last year’s third quar­
ter, according to M. A. Schapiro &
Company, Inc., specialists in bank
stocks.
During the first nine months of 1963
combined deposits of the 11 banks aver­
aged $32,471 million, up 8.0 per cent
from the corresponding period a year
ago. Continuing the pattern of recent
years, these gains are largely due to
growth of time and savings deposits
which now represent 31.1 per cent of
total deposits, versus 26.5 per cent a
year ago, the company said.

Gì)

WHAT HAPPENED

#

MTO CO M M ERCIAL BANK
SA VIN G S IN 2 0 YEA RS?

...Total savings grew 6 times.
... Commercial banks 'savings grew 6 tim es,
...Savin gs and Loans'savings grew IB times.

Here’s what happened in the 20-year period from 19421962. Although total savings increased from $48 billion to
$287 billion and commercial banks kept pace going from
$16 to $88 billion, Savings and Loans recorded a spectac­
ular increase from less than $5 to $80 billion. And about
85% of this prodigious growth occurred during the last
10 years.
This year, the Savings and Loan Foundation will spend
$2.6 million in national advertising.
Cold facts.
And a hot trend.
What can one bank do about it?
Join more than 5200 others—in the Foundation for
Commercial Banks.
The Foundation is spending $1.4 million in advertising
to educate the public about the advantages of full service
banking.
National research shows people are confused as to
which financial institutions offer what services. And this

FOUNDATION FOR COMMERCIAL BANKS
Philadelphia 7, Pennsylvania
Copyright 1963, Foundation for Commercial Banks


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

confusion works against us, as our competitors are given
credit for services they cannot offer.
You’ve seen the ads in Reader’s Digest, Post, Time,
Newsweek and Sports Illustrated. And so have approxi­
mately 96 million of your potential customers.
Plus national television this Fall.
Starting October 5, we’ll be reaching millions more each
week on ABC-TV’s proven program success, “ Wide World
of Sports,” 5:00 P.M .-6:30 P.M., Saturday, EDT.
Join the Foundation for Commercial Banks. It’s essen­
tial for your industry and good business for you.

FO UN D ATIO N

f o r c o m m e r c ia l b a n k s

Philadelphia National Bank Building
Philadelphia 7, Pennsylvania
Send me complete information about the Foundation.
NAME
TITLE
BANK
ADDRESS

Northwestern Banker, November, 1963

REWA RD

This is Leo Van Dittie, Vice President of the American National Bank
and Trust Company of Chicago. Works out of Denver territory, and
is now concentrating on banks in Colorado, Wyoming, Montana, New
Mexico, Texas and parts of Nebraska and Kansas.

U sually hard w orkin g but lives adjacent to 4 th green
o f C herry H ills Country Club. E x p e rt w ith 7-iro n
(not 6-shooter.)
Has alert organization in Chicago fully prepared to back up his jobs.
Rewards are substantial fo r bankers who apprehend this man fo r
important information .

W e s e r v e t h o u s a n d s of p e o p l e . . . b u t w e s e r v e t h e m o n e a t a t im e

American National Bank
AND TRUST COMPANY OF C H IC A G O /L A S A LL E AT W ASHINGTON
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION


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

FRANKLIN 2-9200

71

Joining Billings Bank
John Wallin, a member of the ac­
counting firm of Colberg, Wallin and
Boorman, will join the First National
Bank of Billings as vice president and
trust officer December 1, according to
Fred Marble, bank president.

Montana
N E W
D,

J . DUNDAS

R.

C. W A LLA CE

P re sid en t

S

S ecretary

H e le n a

Joins Shelby Bank
Charles E. Hubbard has been named
assistant cashier of the Toole County
-* State Bank in Shelby. He comes to
Shelby well-experienced in the bank­
ing and insurance fields, having been
^employed for eight years as an in­
surance fieldman, seven years in the
local agency business, and having
been associated for four years with
* the Deer Lodge Bank and Trust Com­
pany.

Buys Baker Interest
Dale Olson has purchased an inter­
est in the Baker National Bank. He
will be associated with Vern Bublitz
* in the operation and management of
the bank.
He replaces Vern Vesely of Billings
. who had been with the bank since
August 1 when it was purchased by
Mr. Bublitz and Edward Towe.

Transfer Somers Charter
The State Bank of Somers has re­
ceived approval of a charter transfer
from Somers to Kalispell. Jack Hens­
ley, president of the State Bank of
*Somers, announced that the Federal
Deposit Insurance Corporation had
approved the transfer.
y A long term lease agreement has
been made on a former Safeway store
in Kalispell, and remodeling will be
undertaken to install a drive-in bank­
ing window along with other numer­
ous changes. The new facilities should
be ready by January 15. The name of
y the bank will be changed to the Val­
ley Bank of Kalispell. Jack King, ex­
ecutive vice president and manager of
the Bank of Columbia Falls, will join
'in the management of the bank after
the move. Capital is being increased
to $100,000.

Helena Appointment
Appointment of Charles G. McClave,
^president and general manager of
Montana Flour Mills, Great Falls,
Mont., as a director of the Helena
Branch of the Federal Reserve Bank
* of Minneapolis for the unexpired por­
tion of the term ending December 31,
1964, was recently announced by the

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

Kalispell Election

G re a t P alis

board of governors of the Federal
Reserve System in Washington.
Mr. McClave succeeds Harry K.
Newburn, former president of the
Montana State University, who re­
signed effective September 1, 1963.

Billings Promotion
Ingolv D. Peterson has been pro­
moted to vice president of the Midl a n d N a tion a l
Bank, B illin g s.
Mr. P e t e r s o n
joined the bank
as of January 2,
1963. Mr. Peter­
son o r i g i n a l l y
started his bank­
ing ca re e r with
the Midland Na­
tio n a l Bank in
1936 and contin­
I. D. P E T E R S O N
ued in b a n k in g
until 1948, at which time he joined the
Stroup Hardware Company until Jan­
uary, 1962, when he re-entered the
banking field, associating with the
Valley State Bank.

The board of directors of the Con­
rad National Bank of Kalispell an­
nounced recently the election of Sol
J. Catron as a member of the board.
Mr. Catron’s appointment fills the
vacancy created by the death of the
late Harry H. Campbell, who had been
a director for 15 years.

New Deer Lodge Director
William R. Taylor has been named
a director of the Deer Lodge Bank and
Trust Company, it was announced re­
cently by Henry Hukill, bank presi­
dent. Mr. Taylor is an attorney.

Joins J. M. Dain
Thomas E. Cramblet has become
affiliated as a registered representative
with the Billings office of J. M. Dain
& Company, Incorporated. He was
formerly with Piper, Jaffrey and Hopwood of Minneapolis, and has had
more than 10 years experience in the
securities business as a mutual fund
wholesale representative and as a
registered representative of the New
York Stock Exchange.

O n th e C o v e r

Helena Election
Russell K. Smith was elected assist­
ant cashier by the board of directors
of the First National Bank and Trust
Company of Helena recently, it was
announced by N. E. Turnquist, presi­
dent. Mr. Smith joined the staff of
the First National Bank a few weeks
ago and will assume his duties as offi­
cer in charge of operations and per­
sonnel.

Observes Anniversary
H.
L. “Lonnie” White, vice presi­
dent, Security Trust & Savings Bank,
Billings, Mont., was honored recently
at a special dinner party marking his
40th anniversary with the bank. He
has been vice president since 1948
and heads the real estate mortgage
department.

Moves to Chester
Bruce K. Miller, formerly assistant
cashier at the Exchange State Bank,
Glendive, has been named cashier of
the Liberty County Bank, Chester,
succeeding Garrett Eaton who has re­
signed.

FREEDOM BELL replica is pre­
sented to John Carlson, president,
Union Bank & Trust Company, H e­
lena, Mont., by West Berlin Mayor
Willy Brandt. A symbol o f the Ra­
dio Free Europe Fund, the Freedom
Bell was a g ift from the American
people to the people o f West Berlin.
Mr. Carlson was a member o f a re­
cent study tour inspecting Radio
Free Europe’s facilities in West Ger­
many. On the cover, Mr. Carlson is
shown being interviewed by a Radio
Free Europe reporter near the Iron
Curtain as a West German guard
and police dog stand by.
Norffiwestern Banker, November, 1963

72

See you around...
Yes . . . the men from U. S. get around — wherever there
is an opportunity to help correspondents with Cattle Partici­
pation Loans. And because they know their way around the
feedlot, they know the way around the problems involved in
cattle feeding and financing.
The men from U. S. N ational are thoroughly equipped
with facts, figures and financial know-how to develop sound
credit programs that fit the needs of your cattle feeding
customers. They’ll be happy to come out and work with you.
Call the U. S. National, 341-8765, in Omaha.
M em b er F e d e ra l D e p o sit In su ra n c e C o rp o ra tio n

Northwestern Banker, November, 1963


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

73
offices, acoustical ceilings, solid vinyl
floors in public areas and carpeted
officer section. The interior was
planned for maximum efficiency in
customer service in pleasant relaxing
surroundings.
The exterior features marble pan­
els and a marquee over all glass area,
and color highlighted with lacquered
aluminum panels over the glass.

Nebraska

NEW S
LY M A N M . S T U C K E Y
H A R R IS

V,

O STER BER G

P re sid en t
Secreta ry

Lexington
O m ah a

Banker Wins Medal
At Ak-Sar-Ben

Hank ISutitiffs Announced
WO RULINGS effecting Nebraska
banks have been handed down by
state officials.
The first, issued by Ralph Misko
just prior to his resignation as di­
rector of banking, spelled out maxi­
mum interest rates and reserve re­
quirements for Nebraska banks. The
second, an opinion written by As­
sistant Attorney General Richard Wil­
liams, deals with the number of teller
windows permissible in auxiliary of­
fices.
Mr. Williams stated that a Nebraska
bank with an auxiliary teller office
may have more than one teller win­
dow located therein as long as the
general complex functions as one ba­
sic unit.
The interest rates and reserve re­
quirements outlined by Mr. Misko are
as follows:
Reserve requirements for banks in
cities with populations of 25,000 or
above shall be 20 per cent of demand
deposits and 5 per cent of savings and
time deposits.
In other cities, the requirements
shall be 15 per cent of demand de­
posits and 5 per cent of savings and
time deposits.
The interest regulation provides for
a maximum of 4 per cent on any part
of a savings account on deposit not
less than 12 months; 4 per cent on
any time deposit having a maturity
90 days or more after the date of
deposit; 3% per cent on a savings de­
posit of less than one year, and 1 per
cent on any time deposit having a
maturity less than 90 days.
A third regulation provides that no
officer or employee of a state bank
shall “become indebted” to the in­
stitution except under special provi­
sions of the state’s new recodified law.
Overdrafts and cash items of officers
and employees are prohibited.

T

at a party was held in his honor by
officers and staff of the bank.

Capital Increase
The First National Bank, Hooper,
recently increased its capital from
$75,000 to $150,000.

David City Open House
The new David City Bank of David
City recently showed its new facili­
ties to the general public and invited
guests on Friday, November 1. The
bank opened for regular business on
November 4.
Officers of the bank are Lester
Souba, president; Charles Sullivan,
cashier; and Eleanor Souba, assistant
cashier. Additional directors are Ray
E. Sabata and Raphael A . Dobesh.
The bank recently was moved from
Ulysses to David City. A display in­
cluding $1 million, counterfeit and
“old style” currency was featured at
the opening.
The bank purchased a two-story
building which has undergone a com­
plete remodeling on the first floor and
a new front. Interior work features
spacious officer areas with two private

New

Jack Flohr, assistant cashier of the
American National Bank of Sidney,
and a member of the Sidney National
Guard unit, was honored by Ak-SarBen of Omaha recently when his
name was one of 30 guardsmen and
reserves given citations for being out­
standing soldiers. He was nominated
for the award by his battery com­
mander after his work at camp this
summer.

Remodeling at Wayne
The State Bank of Wayne is in the
process of an extensive remodeling
project. The main bank offices as well
as the lobby will be remodeled. The
project is expected to be completed
within the next few months, accord­
ing to Henry Ley, president.

Wausa Banker
Heads Fund Drive
Norbert T. Tiemann, president of
the C om m ercia l State Bank of
Wausa, recently was named chairman
of the 1964 Nebraska Heart Fund
Campaign. Mr. Tiemann also is vice
president of the Nebraska Bankers
Association.

Hrandisland Unildintf

Blue Hill Honors
William Kort, executive vice presi­
dent of the Commercial Bank of Blue
Hill, recently celebrated his 35th an­
niversary with the bank. He was pre­
sented with a set of golf equipment

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

NEW HOME for the Commercial National Bank & Trust Company, Grand Island, Neb.,
is this 88- by 100-foot structure. Exterior o f the building is of black granite, gold and
silver and anodized solar screen, buff brick, aluminum and glass. A drive-in facility
and parking space for 45 cars also are included. Open house was November 1.
Northwestern Banker, November, 1963

74
elected at the annual meeting of the
association held in Miami Beach, Fla.
*

*

=t=

Earl G. Watters has been elected

United States National Bank,
T HE
in cooperation with public and

as The Freedom Foundation, The Ed­
ucational Film Library Association,
The National Headliners Club, and
others.
Teachers using the series receive a
comprehensive discussion outline in
advance of each half-hour film. The
outline includes a detailed summary
of the film plus suggested questions
and ideas for discussions, study as­
signments and compositions by the
students.

parochial school authorities, recently
a n n ou n ce d plans to make Screen
News Digest, an award-winning film
series, available to junior and senior
high schools in the Omaha area.
U. S. National President E. W. Ly­
man said the monthly current events
program will be supplied to the
schools without charge as a public
service by the bank. The film series
has been accepted by officials of the
Omaha public schools, District 66, and
the Omaha archdiocese.
Produced and edited especially for
teenage audiences, the educational se­
ries is designed to help students keep
abreast of current events by making
complicated issues more understand­
able and by providing a graphic sup­
plement to the school textbook. Often
called, “living history of the class­
room,” the Screen News Digest has
won awards from organizations such

*

*

*

Clifton Batchelder, president of the
United States Check Book Company
in Omaha, has announced his candi­
dacy for state senator from the 10th
legislative district in the Nebraska
Unicameral.
*

*

*

Regina Nagle, assistant vice presi­
dent, Douglas County Bank, has been
elected regional vice president for the
Midwest Division of the National As­
sociation of Bank Women. She was

vice president and comptroller of the
Central National Insurance Group of
Omaha by the
company’s board
o f d ire cto rs, it
h a s b e e n a nnounced here by
M. G. Olson, pres­
ident.
Mr. W a tters,
former vice presi­
dent and treasurer of the Stuyvesant In su ra n ce
E. G. W A T T E R S
G roup of Allen­
town, Pa., began his career in the insurance field with the Joseph Froggatt Company, Inc., in New York, im­
mediately following his graduation
from Rider College, Trenton, N. J., in
% *

S

C

H

I

L

E

S

&

j
'

S

£

been elected assistant cashiers at the
First West Side Bank. Mr. Gunia has
been with the bank six years and has
been auditor for the past two years.
Mr. Dewey came to the commercial
loan department of the bank last April
from another Omaha bank.
*

*

r

C

i

O

M

l

P

■

A

-------

N

Y

OMAHA, NEBRASKA
412 Farm Credit Building

LINCOLN, NEBRASKA
1321 P Street

P h o n e 346-6677

P h o n e 432-3324

LEXINGTON, NEBRASKA
Ernst & Bieck Building

CHADRON, NEBRASKA
999 East 6th Street

Northwestern Banker, November, 7963

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

L

Leonard Law rence, president of
Robert E. Schweser Company, has
purchased the interests of Mr. and
Mrs. Charles Reed in the Bank of Bellvue.
Mr. Reed, president and founder of
the bank, will remain active in its M
management. Bellvue is located south
of Omaha near the SAC Airbase.

T

T

*

*

T o p • iu y c e e r s

\j

'

f

*

ORDERS EXECUTED ON A L L PRINCIPAL EXCHANGES

^

-

George Gunia and Ted Dewey have

Unlisted and Local Stocks

- r—

4

1940.

Municipal and Corporate Bonds
Listed Stocks

<

Jay Bordewick (le ft) admires new
Buick which has been loaned to Joe
Hallas for use in his duties as Ne­
braska Jaycee president. Mr. Hallas
is assistant vice president of the
United States National Bank of
Omaha, while Mr. Bordewick, Jaycee
Chaplain, is assistant cashier at the
same bank.

Left to right, seated: Jack B. Wheeler, John R. Cockle, Thomas C. Quinlan, Thomas N. Moore, David F. Davis,
Warren E. Van Norman. Lejt to right, standing: Robert O. Brown, Donald W. Engdahl, Jesse H. Miller, Eugene
M. Smith, A. J. Rhodes. Not shown: Leo A. Evers, Stanley A. Traub.

These Men Can Serve You...
and Your H eirs
You can take the qualifications of these men for granted. But don’t
underestimate the use y o u can make of their experience and knowledge
. . . whether in planning an up-to-date will which your lawyer will draw,
or in watching the interests of your heirs.
W e’d like to tell you more about our suggestions for you. Call our Trust
Department now while you’re thinking about this.

Estate and Trust Department

The Omaha National Bank
Member Federal Deposit


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

Insurance Corporation

Northwestern Banker, November, 1963

76
been named cashier of the newlyformed First National Bank of Glenrock, Wyo.
*

A T E B A N K IN G DIRECTOR
STRalph
Misko resigned his post last
month rather than cancel a contract
to purchase a Holdrege state bank.
His resignation was prompted by an
attorney general’s opinion which held
that a banking law recodification pro­
hibits a banking director or his depu­
ties from having any direct or indirec
interest in a bank or institution under
supervision of the department.
Mr. Misko had entered into a con­
tract to purchase control of the First
Security Bank in Holdrege when his
present term as banking director ex­
pires on December 31, 1964. The at­
torney general held that this action
was in violation of the law.
John Kelley, Governor Frank Mor­

rison’s public relations man, has been
named acting director. Mr. Kelley
stated to the N orthwestern B anker
that it is doubtful that any permanent
appointment will be made until after
the adjournment of the special com­
mittee c o n s id e r in g the time-sales
problem.
*

*

*

Joseph T. Heaney, 62, vice presi­

dent and member of the board of
directors of the Union Bank and Trust
Company, died last month. He came
to Lincoln from Williamsburg, Iowa,
in 1954, and has been with the bank
since that time.
*

*

*

R. D. Simpson, former cashier at

the Cornhusker Bank in Lincoln, has

*

*

A ‘‘Build Nebraska Savings Pro­
gram” recently launched by the Na­
tional Bank of Commerce Trust and
Savings Associa­
tion of Lincoln,
is intended as a
long-range, con­
structive
effort
on behalf of the
bank a n d the
state of Nebras­
ka, according to
Glenn

Y aussi,

president.
T h e program
G. Y A U S S I
was launched in
Lincoln’s Sunday newspapers fol­
lowed with commercials on television
and radio. Later the advertising pro­
gram has been expanded to include
an out-state television station and ten
more radio outlets in Nebraska.
Correspondent and non-correspond­
ent banks have been invited to join
in the program.
The program is designed to inform
the public that funds saved in Ne­
braska banks are used to develop the
economy of the state.

IF IT’S ACTION
YOU WANT!!
on special handling o f items
or any type o f correspondent service...

Call 825-3181 . . . Area Code 303 f o r . . .
The Bank that Talks Y our Language!

R
A
MEMBER:
E.D .I.C .
FEDERAL RESERVE SYSTEM

Northwestern
Banker, November, 1963

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

A
I

M

L
K

A N D
Central Park... 15th & Arapahoe Street, Denver 17, Colorado

77

T | | r

| U | I f t I l f r ^ T O u r g r e a t M i d w e s t is m o r e t h a n cities a n d to w n s , m o r e
i n d u s t r i e s , f a c t o r i e s , b u i l d i n g an d f a r m s . Our.
|A
n r A n i r g r e a t e s t s t r e n g t h lies in t h e p e o p le of t h e M id w e s t . Peo p le w ith
p
p H
visio n, p e o p le w ith t h e will an d a b ility to build t h e i r visio n into
reality. S u c h m e n w e r e h e re e v en 1 0 0 y e a r s ag o to build t h e f o u n d a t io n s of t o d a y ’s
p ro s p e rity . A m o n g t h e g r e a t b u ild e rs w e r e a n u m b e r o f t h e p i o n e e r o f f i c e r s a n d
d ir e c to r s of t h e First N a t io n a l B a n k of O m a h a . T h e i r z e a lo u s fa ith in o u r region w as
o fte n e x p r e s s e d in ta n g ib le h e lp f o r b u ild in g n e w in d u s trie s , f o s t e r in g n e w v e n t u r e s .
H e lp in g o t h e r s g r o w is still a m o t i v a t i n g s p ir it — a t t h e First N a t io n a l B a n k of O m a h a .
T h e First N a t io n a l B a n k of O m a h a w o u ld like to m a k e its s e rvic es a v a il a b le to you.

1 0 0 th

I llll 111I U if LiO I t h a n

FIRST NATIONAL BANK OF OMAHA

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Federal Reserve Bank of St. Louis

anniversary

1
9
6
3

1
8
6
3
O M AH A, N E B R A S K A

Member Federal Deposit
Insurance Corporation

Northwestern Banker, November, 1963

78

Nebraska News
tury, died last month. He was presi­
dent of the Nebraska State Bank at
the time of his death.

Name McCool Cashier
William Robson has been named
cashier of the Blue River Bank in
McCool. Mr. Robson moves to Mc­
Cool from the Union Bank and Trust
Company in Lincoln, where he was
assistant cashier. He started his ca­
reer in banking with the Gordon
State Bank in 1957 and later joined
the National Bank of Commerce in
Lincoln before going with the Union
Bank.

friends who wished to see the newly
remodeled building.

New Allen Employee
Celebrate Diamond
Anniversary
The Nehawka Bank of Nehawka re­
cently celebrated its diamond anni­
versary. It concluded 75 years of
continuous banking with members of
the same family, and entered upon its
76th year. The West and Wunderlich
families have been associated with the
bank since it was organized in 1888.
Open house was held for banker

Frank J. Domingo
Frank J. Domingo, 67, banker at
Weeping Water for nearly half a cen­

The Security State Bank of Allen
has appointed Greg E. Williams as
vice president. Millard M. Martin,
president of the bank, in making this
announcement, said this is the first
step in arranging for his eventual re­
tirement as an active officer. Mr. Wil­
liams is a native of Lime Springs,
Iowa.

Elected to Board
Jerrold Kerr, 33, is a new member
of the board of directors of the City
National Bank, Hastings. This brings
the number of board members to
eight. Mr. Kerr leads the real estate
and investment firm of Kerr-Cochran,
Inc., in Hastings.

Bank Plans Car Park

I

. . . a n i n v i t a t i o n to
Leonard L . Law ren ce

u se S ch w eser

President

A p p r a is a l S erv ic e

You are invited to make full use of our
experience

and

facilities

for

appraising

your bond portfolio.
You may like to have us study your
municipal bond holdings and make rec­

Frank E . W illiam s

Executive
Vice-President

The Beatrice National Bank is plan­
ning construction of two stories of
parking space above the present bank
parking lot. Construction is slated to
begin this fall. The top two floors
will accommodate 150 cars and will
project completely over the sidewalks
out to the street. Also the top two
stories will overhang the alley in
back, and connect with the bank
building. Five offices will be con­
structed on the present ground level
of the parking lot.

ommendations that might improve your

Bellevue Re-election

position in view of present market con­

Charles Reed, president of the Bank
of Bellevue, has been re-elected secre­
tary of the Association of Military
Banks.

ditions.
Feel free to send us your bond portfolio
for analysis — a list of your holdings
designating amount, issuer, type of bond,
maturity, option and interest rate — or

P a trick H . Rensch

Vice-1’resident,
end Counsel

H it O ne M illio n

call on us for any type of bond coun­
seling.
Naturally, there is no cost or obligation
to you.

W illiam M arch

Secretary and
Treasurer

RO BER T

E.

111
INVESTMENT BANKERS

208 S. 19th Street

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201 W e lle sle y Drive S .E . , A lb u q u e rq u e, N ew M exico, T e l. 268-9043

Northwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

Carol Reddish (right) is presented
with interest for one day on $1,000,000, for having made the one-mil­
lionth deposit at the First National
Bank and Trust Company of Lin­
coln’s drive-in facilities. Presenting
the award is W. E. Notle, executive
vice president.
Looking on are
(from le ft) Cecil McConaughey, as­
sistant cashier; Ellis Dann, assistant
vice president ; and Marilyn Christy,
teller.

79

YOUR CAPITAL CITY CORRESPONDENT
Offering you personal service (whether at your bank or in Lincoln)
is a continuing privilege of your Capital City Correspondent. His
thorough training and experience are backed up by a complete Cor­
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Northwestern Banker, N ovembe r, J963

Nebraska News
cause of a delay in obtaining the
necessary equipment. The bank had
hoped to open on November 1. FDIC
approval has been received. Capital
accounts totaled $275,000.

Plattsmouth R e m o d e lin g S t a r t s

1
Ord Remodeling
The First National Bank of Ord
will soon begin remodeling. New
heating and cooling units, a new en­
trance, lowering of the ceiling, re­
arrangement of teller windows and
addition of a conference room are in- <
eluded in the plans.

Joins Bayard Bank

ENLARGING and modernizing of the Plattsmouth State Bank, Plattsmouth, Neb., is
underway. Improvements include doubling the width, an entire refacing of the front
and side o f the building and a complete alteration of the interior. Architects are A.
Moorman and Company of Minneapolis. A feature o f the interior w ill be an unusual
bank fixture arrangement designed in a half circle to give an unusual effect. Posting
room w ill extend to the rear of the tellers’ cages.

Arcadia Open House
The Arcadia State Bank in Arcadia
recently held an open house in its
newly remodeled facilities. The event
coincided with the 78th birthday of
the bank.

Knox County Bankers Meet
The Commercial State Bank of
Wausa was host to the Knox County
Bankers Association recently. Twen­
ty-seven men attended the convention.
New officers elected were Charles
Marshall, of Bank of Niobrara, presi­
dent, and Joe Radosti, assistant cash­
ier, American National Bank, Creigh­
ton, secretary-treasurer.
State Senator Jules Burbach and
N. T. Tiemann addressed the group

on legislative matters. Mr. Tiemann
is president of the Wausa Bank and
vice president of the Nebraska Bank­
ers Association.

Emerson Open House
The First National Bank of Emer­
son recently held an open house for
the inspection of its recently remod­
eled quarters. Over 800 people at­
tended. The bank donated $1.00 for
every registered adult to churches in
Emerson.

Delay Sioux City
Bank Opening
The opening date for the Dakota
County State Bank in South Sioux
City will be about mid-November, be-

Leaves Hastings
Richard E. Setterberg has resigned
as a vice president of the First Nation­
al Bank of Hastings, effective Novem­
ber 9, to become managing officer of
the Farmers and Merchants State
Bank of Paynesville, Minn.
*Mr. Setterberg joined the First Na­
tional in 1959 as assistant vice presi­
dent and was elected vice president
earlier this year. A native of Mason
City, Iowa, he first started in banking
with the First National there, then
worked at Conntinental Illinois Na­
tional Bank & Trust Company of Chi­
cago before joining the Northwest '•*
Bancorporation in Minneapolis, from
which he was assigned to the Hast­
ings bank.
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Northwestern Banker, November, 7963


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Federal Reserve Bank of St. Louis

4

Marion Sjolander, 28, who has been
operations manager of the First Na­
tional Bank in Ogallala for the past
four years, has been named cashier y
at the First National Bank of Bay­
ard. His appointment was effective
November 1. Prior to joining the
Ogallala bank he spent four years
with the National Bank of Commerce
in Lincoln.

81

►

1 ** V

Bankers with plans use the
You may call on our experienced correspondent staff
for counsel on inventories, receivables, warehousing
and other seasonal commercial loans.

F I R S T

N A T I O N A L

& T ru st

C om p an y

12th & N Street —Lincoln, Nebraska

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Federal Reserve Bank of St. Louis

B A N

K

of Lin co ln
Member: F.D.I.C.
Northwestern Banker, November, 1963

82

Nebraska News
Automated Farm Records

A .I t ..i . A ff

“New Developments”—Dr. L. L. Boger, chairman,
Department of Agricultural Economics, Michigan
State University, East Lansing, Mich.
“The Banker’s Place”—E. J. Clabuesch, president,
Pigeon State Bank, Pigeon, Mich.
“ Correspondent Banking for Farm Lending” —
Panel Discussion.
Edward M. Norman, moderator; president, The
First National Bank of Clarkesville, Clarkesville,
Tenn.
J. M. Bellamy, president, National Bank of Com­
merce, Pine Bluff, Ark.
Del Crouse, president, American National Bank of
Riverton, Riverton, Wyo.
Dooley Dawson, vice president and manager, Agri­
cultural Department, Bank of the Southwest N.
A., Houston, Tex.

C

R e v ie w s R a n k C r e d it
(Continued from page 46)

5:30 Social Hour—Colonial Room. Guests of Kansas
City Clearing House Association.
6:30 Dinner—Grand Ballroom.
Presiding—Mr. Axton.
Address—Richard J. Babcock, president and pub­
lisher, Farm Journal, Inc., Philadelphia, Pa.
TUESDAY, NOVEMBER 19
Morning Session—Grand Ballroom

A.M.
9:00 Presiding — Theodore D. Brown, president, The
Security State Bank, Sterling, Colo.

Osterberg Becomes
Executive Vice President
Harris V. Osterberg, secretary of the
Nebraska Bankers Association, is mov­
ing up to executive vice president of
the Association and his son, Bill, will
become secretary. Bill Osterberg has
been serving as assistant secretary.
The announcements were made by
Lyman Stuckey, president of the Asso­
ciation, during the annual Nebraska
Group meetings held November 5-11.

3 New FPRA Films
Financial Public Relations Associa­
tion has just released three new full
color soundslide films to aid financial
institutions in effective staff training.
The 35mm slide films have distincitve missions:
“ Bankers, All!” is an enthusiasm
builder, aimed at truning clock watch­
ers and “machines with faces” into
really productive sales people. The
film is also something of a status
builder in that it points out the im­
portance of being a banker.
—

P.M.
12:30 Luncheon—Grand Ballroom.
Presiding—Mr. Axton.
Address—Robert N. Hilkert, first vice president,
Federal Reserve Bank of Philadelphia, Philadel­
phia, Pa.
Adjournment.— End.

“Your Customer — The Care and
Treatment Of” is reallly a basic intro­
duction to customer relations and is
directed principally at contact employ­
ees, though non-contact staff members
will benefit from its good lessons in
human relations.
“Anatomy of an Error” points up
the havoc that results when even a
relatively small mistake creeps into
bank work. Without being preachy,
the film instills an attitude of careful
watchfulness, an environment where
errors are unlikely to thrive. The film
is designed to benefit all employees,
including those working far behind
the scenes.

Fre e M a p s

Orders for the films or requests for
descriptive brochures on these and
other films in FPRA’s visual aids li­
brary should be sent to FPRA, 231 S.
LaSalle Street, Chicago, 111. 60604.

105 YEARS OF SERVICE

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Omaha, Nebraska

342-7123

BANK SUPPLIES
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Northwestern Banker, November, 1963

June 24, 25 and 26 are the dates se­
lected for the 1964 convention of the
Upper Midwest Agricultural Credit
Council, announced UMACC Presi­
dent A. M. Severson, vice president,
First National Bank, Moorhead, Minn.
The convention will be held at the
newly-built Holiday Inn located in
Bismarck, N. D.

FPRA is now filling orders for all
three films. “ Bankers, All!” and
“Anatomy of an Error” are $60 each.
“Your Customer” is $45.

O MA H A P R I NT I NG CO.


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Federal Reserve Bank of St. Louis

Set Ag Credit Meeting Dates

100TH A N N IV E R SA R Y c e le b r a ­
tion at the First National Bank of
Omaha includes the distribution of
these centennial maps of the Ne­
braska portion o f the Nebraska Ter­
ritory as it was 100 years ago. The
map shows routes taken by early
explorers. More than 800 were given
away the first day o f distribution.

YO U R STATE BA N KERS A SS O C IA TIO N
O F F IC IA L S A F E , V A U L T A N D
TIM ELO C K EXPERTS

F. E. DAVENPORT & CO.
OM AHA

83

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his availability demonstrates the broad range of
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Federal Reserve Bank of St. Louis

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Northwestern Banker, November, 1963

84

4

Giving Thanks...
. . . in the spirit of the season, to the scores of
astute hankers who believe, as we, that space-age
banking progress can be profitably based on conser­
vative, constructive principles, and who relate this
to depending upon us for all of their correspondent
requirements . . .
. . . from such simple, routine services as
efficient expediting of transient items, to
the m ost c o m p l e x matters demanding
thoughtful attention and seasoned banking
acumen . . .

4

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. . . for traditionally we are dedicated to better
banking in all of its ramifications. We’d be thank­
ful, too, for the opportunity to prove this to you.

BANKERS TRUST
COMPANY
"Des Moines’ Largest Locally Owned Bank”
4

6th Avenue and Locust Street
OFFICES: GRIMES and W IN D SO R H EIGHTS

Member, F.R.S.
N orthwestern Banker, November, 1963


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Federal Reserve Bank of St. Louis

Member, F.D.I.C.

ASSOCIATION

HIS WAS THE SCENE (le ft) as Iowa bankers held their
77th annual convention in Des Moines last month. The beau­
tiful stage setting centered around the Centennial theme
honoring the National Currency A ct and Dual Banking Sys­
tem. BIG H T— Old and new officers of the IB A are pictured
(le ft to righ t): James H. Pullman, Jr., retiring v.p., and pres.

X e a r ly

o f Fremont County Sav., Sidney; H. L. Ollenburg, retiring
pres., and pres, of Hancock County Natl., Garner; Charles H.
Walsh, new pres., and pres, of Farmers & Merchants Sav.,
Burlington, and Alvin Renaas, new v.p. & treas., and v.p. of
Decorah State, Decorah.

5 . 0 0 0 A t t e n d t i n e a 's

7 7 t h A n n u a l H a n k e r s I 'o n r e n t i o n
B y BEN H A L L E R , JR
Editor

O T H E R record-breaking regis­
A Ntration
for the Iowa Bankers As­

7
,

y

-

-

sociation annual conventions went
into the record books last month with
the attendance of 4,931 persons at the
77th annual convention in Des Moines.
This was 93 more registants than
were at the 1962 meeting. The total
this year was made up of 2,310 ladies
and 2,621 men.
The combination of leading agricul­
turalists, bankers, entertainment per­
sonalties, and government officials
proved again to be to the liking of
Iowa bankers, for practically every
business session in the Hotel Fort Des
Moines ballroom drew an overflow
crowd.
As was customary, the first moi’ning of the meeting (Monday) was devoted to the Annual Agricultural
Breakfast and Conference. Commencinng at 7:45 a.m. promptly, it con­
tinued on through until noon under
the chairmanship of Will A. Lane, Jr.,
ag committee chairman and vice pres­
ident of Security Savings Bank, Marshalltown.

Edgar T. Savidge, deputy manager
of the American Bankers Association
> and secretary of its ag committee,
said in his talk that banks have in­
creased their farm real estate holdings
by $310 million, or 16 per cent, be­
tween the summer of 1962 and July,
1963. He said further he believes
banks must handle more long-term

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Federal Reserve Bank of St. Louis

credit for farm businesses, have a
written policy covering farm mort­
gage lending with higher loan-to-value
mortgages permitted, appraisals based
on long-term value of the farm, loan
amounts and long-terms of realistic
value.

of Winrock Farms at Morrilton, Ark.,
told in his talk and with the aid of
color pictures of the advances made
at Winrock Farms in artificial insemi­
nation and consequent breeding con­
trol of beef cattle.

Dr. T. J. Cunha, head of the depart­
ment of animal science at the Univer­
sity of Florida, took a “Crystal Ball
Look at Livestock Feeding 25 Years
from Now.” He looks for continuance
of family farms, only larger, with
more mechanization, specialized train­
ing and technical knowledge, all re­
sulting in weekends off for the farm
family. He also looks for continued
demand for lean meat type animals,
with fewer diseases accomplished pri­
marily by preventive medicine rather
than by control of disease after it oc­
curs. Beef cattle will be fed in larger
lots, he says, with climate control
and produced to specifications of store
buyers. He looks for improvements
in breeding, feeding, slaughtering and
marketing of all livestock in this pe­
riod, including continued decentrali­
zation of the packing industry, and
extensive sales of pre-cooked meats
packaged by cuts.

Edward P. Cliff, chief of Forest
Service, U.S.D.A., Washington, D. C.,
said that originally almost one-fifth
of Iowa was wooded. Today, about
7 per cent, or 2.5 million acres, is
wooded to the extent it is considered
commercial forest land. There are
another 1.1 million acres in wind­
breaks and shelter belts and land that
could be put to forestry use. Iowa’s
forestry industry present ranks fourth
in the state, ranking only behind farm­
ing and food products, machinery, and
printing and publishing. This indus­
try employs 6 per cent of the state’s
industrial workers, has a payroll of
$43 million. Iowa timber crops har­
vested annually are worth more than
$9 million to woodland owners, and
the value added to wood from Iowa,
after cost of materials, fuels, etc.,
amounts to more than $70 million an­
nually.

Roger Fleming, secretary-treasurer

of the American Farm Bureau, Wash­
ington, D. C., discussed political and
other government decisions affecting
the farming industry.
Dr. William T. Berry, Jr., manager

Vincent E. Rossiter, Sr., president
of the Bank of Hartington, Hartington, Neb., was the final ag conference
speaker with his topics, “ Coordinate
or Collapse,” He urged all rural bank­
ers to do everything possible to bring
agriculture from its present low posiNorthwestern Banker, November, 1963

86

Iowa News
1963. the low *
.........

vmy

S S T . I | ’ 9 th e Centennial of tj American 1g, establis,
nation . . . .
established on F et M u 25. 1863 the 'Nation*
National Currency
i

f

4
SEVERAL of the many fine speakers appearing on the Iowa
convention program are pictured above. L E FT: Hon. Wright
Patman (Dem., Tex.), chmn. of U. S. House Committee on Bank­
ing and Currency, visits with H. L. Ollenburg, retiring pres, of
Iowa Banking Association and pres., Hancock County Natl.,
Garner. LEFT CENTER: Hon. Everett M. Dirksen (Rep., 111.),
member of U. S. Senate, pictured on platform in front of special

tion in the economy back to a higher
level with improved earnings, thus
helping the rural communities. “Our
interest,” he said, “is surrounding our
communities with a well-heeled agri­
culture that can sustain and give vig­
or to our rural towns. We must co­
ordinate a strong bank effort with
those groups who are now waging the
fight to solve our true farm problems.”
State politics came in for their share
of attention when David C. Shaff, Iowa
State Senator from Clinton, and au­
thor of the Shaff Plan for reapportion­
ment of the Iowa legislature, dis­
cussed his plan for Iowa bankers. The

OFFICERS ELECTED
The follow ing officers were elected
at the 77th annual convention of
the Iowa Bankers Association in
Des Moines, October 23:
P resid e n t— Charles H. Walsh,
president, Farmers and Merchants
Savings Bank, Burlington.
Vice President and Treasurer— A l­
vin S. Renaas, vice president and
cashier, Decorah State Bank, De­
corah.
Secretary (reappoin ted )— Frank
Warner, Des Moines.
Immediate Past President— H. L.
Ollenburg, president, Hancock Coun­
ty National Bank. Garner.
* * *
The follow ing men were elected
Iow a officers of the American Bank­
ers Association at the state A.B.A.
election October 22, conducted by
W. W. Summerwill, A.B.A. vice
president for Iowa and president,
Iowa State Bank and Trust Com­
pany, Iowa City.
Member of E x e c u tiv e Council
(term expires 1966)— Carroll W.
Grimes, president, First National
Bank, West Union.
Member Nominating Committee—
Gordon L. Mennen, president, Le
Mars Savings Bank, Le Mars.
A lte r n a te Member Nominating
Committee—J. Bradley Young, vice
president, Iowa Trust & Savings
Bank, Centerville.

Northwestern Banker, November, 1963

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Federal Reserve Bank of St. Louis

backdrop honoring Lincoln on occasion o f A.B.A. Centennial
observance o f National Banking and Currency Act. RIGHT
Center: Will A. Lane, Jr. (seated), v.p., Security Savings,
Marshalltown, and IB A ag committee chairman, with Ed
Savidge, A.B.A. deputy mgr. at microphone. RIG H T: Vincent
E. Rossiter, Sr., pres., Bank of Hartington, Nebr. Both of latter
two speakers were on Ag Conference program.

reapportionment program has been a
hot political issue in the state the past
years and Mr. Shaff’s plan has come
under heavy attack by Iowa Governor
Harold E. Hughes in recent talks
around the state. Governor Hughes’
talk the final day of the Iowa conven­
tion was no different, for he took the
occasion to denounce the Shaff Plan
in the strongest possible terms.
The Hon. Wright Patman, chairman
of the U. S. House of Representatives’
Committee on Banking and Currency,
reviewed details of the much-discussed
survey being made of banking by his
committee at this time. Mr. Patman
declared his committee’s survey is
entirely friendly, and that he is inter­
ested in the small town, independent
bank continuing to better serve the
needs of the community. He stated,
“We must reconcile ourselves to fed­
eral control of banking, but we don’t
have to have bad control.” Mr. Pat­
man said further, “ Statewide branch­
ing by national banks (proposed by
Comptroller Saxon might possibly be
passed into law, but only over my
dead body!”
Mr. Patman urged every banker to
cooperate in the survey by answering
each question in detail, although the
questionnaire is lengthy. Since the
passage of federal laws frequently re­
sults in passage of state laws, he said,
it is important that his committee
hear fully from state bankers as well
as national bankers.
William F. Kelly, the newly-elected
president of the American Bankers
Association, made his first appearance
at a state convention of bankers since
his selection to the A.B.A. presidency
earlier in October at Washington, D.
C. His talk is reviewed in a feature
article in this issue.
Ben H. Wooten, chairman of the
A.B.A. Centennial Commission and
chairman of the First National Bank

in Dallas, Tex., gave another of his
stimulating talks on bank service. His
talk also is reviewed in detail in a spe­
cial article in this issue.
The Hon. Everett M. Dirksen, mem­
ber of the U. S. Senate from Illinois,
brought his deep-throated, Republican
voice to the convention platform for
a “ State of the Union” address. With­
out notes, the veteran Senator em­
barked first on a round the world
resume of countries which have been
aided by U. S Foreign Aid expendi­
tures, detailing troubles encountered
in each place. He said, for instance,
“$5 billion $300 million of your money
has been invested in Korea and it is
still divided. One begins to wonder
what we have durably achieved there
after $19.5 billion was spent there on
World War 11% and the $5.3 billion
since.”
Senator Dirksen pointed out that in
the past 19 years, 29 governments
have foundered and no longer exist;
nine heads of state have been assassi­
nated, and three prime ministers
whose countries our money has aided
have been assassinated.
On the domestic scene he said our
most important problem is the fiscal
problem, with the Secretary of the
Treasury talking about a 1965 budget
now of $102 billion plus. He said a
limit to federal spending will come
only when the people stand up and
say “Enough!” He cited as an internal
danger to the country the campaign­
ing being waged by the Department of
Health, Welfare and Education to get
a massive aid to education bill passed.
He said this step to socialism aids out­
siders seeking the fall of our govern- <
ment.
Most of the afternoon of the second
day was devoted to activities of
NAB AC and how this educational unit
is aiding banks, not only in the tradi­
tional auditing procedures, but in the

87

THE NORTHWESTERN BANKER booth in the convention
lobby was a meeting place for many friends during the 3-day
convention. Typical o f the many who met there were the above
seven men, from left: M. L. Abrahamson, Treasurer of Iowa,
4 Des M oines; Charles J. Scanlon, pres., Seventh Federal Reserve

switchover from mechanical to auto­
mated bookkeeping methods, with conr tingent responsibilities in the fields of
personnel supervision. F. Byers Mil­
ler, executive director of NABAC,
-j talked first, then showed a film point­
ing up an auditor’s responsibilities,
then a panel composed of men from
the eight NABAC conferences in Iowa
r staged a question and answer period
for the remainder of the afternoon.
Robert K. Wilmouth, vice president
>. of the First National Bank of Chicago,
and chairman of the National Automa­
tion Conference, discussed “Realities
of Automation.” As an expert on in> ternal operations of his bank, Mr Wil­
mouth was qualified to discuss in de­
tail how automation affects various
areas of the bank, its impact on per­
sonnel as well as selling bank services,
, and responsibilities bankers must face
up to when making decisions to go
into automation for their respective
banks.
*
The Hon. James E. Webb, adminis­
trator of the National Aeronautics and
Space Administration, Washington, D.
v C., gave a good interpretation for lay­

men of the highly technical job as­
signed his department, and the capa­
ble job being done in space explora­
tion, scientific ground work required,
and knowledge gained from space that
is helpful to America in various fields
not related to space travel. He cited
numerous instances where experi­
ments in building hardware for space
vehicles had produced side effects of
better production methods for other
types of industries.
Raymond Burr, star of the “Perry
Mason” series on CBS-TV, was the
final speaker and gave a quiet, but
hard-hitting talk on “Capital Invest­
ment in Our Freedoms.” Mr. Burr
spent a major share of his address in
discussing Freedoms Foundation of
Valley Forge, Pa., a non-partisan, non­
profit organization whose goal is to
bring Americans to a greater aware­
ness of the freedoms guaranteed by
the Constitution and to install in
Americans the desire to preserve these
freedoms. Former President Dwight
Eisenhower and former Postmaster
James Farley are co-chairmen of the
Foundation.

L E FT— (Standing) Gerald O. Nelson, v.p., Iowa-Des Moines
Natl., Des M oines; Ben H. Wooten, chmn., 1st Natl., Dallas,
> Tex., and Edgar T. Savidge, deputy mgr., A.B.A., New York.
(Seated) Mrs. Nelson; William F. Kelly, pres, o f A.B.A. and
pres., First Pennsylvania Banking & Trust Co., Philadelphia;
Mrs. Kelly, and Harold P. Klein, sr. v.p.. Iowa-Des Moines Natl.


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Bank, Chicago; Dick Dunlap, v.p., Commerce Trust, Kansas City;
Dick Lee, v.p., Capital City State Bank, Des M oines; Tom Can­
non, v.p., Commerce Trust, Kansas City; Doug Salter, assistant
vice president, First National City Bank, New York, and Bill
Heimerman, sr., v.p., Northwestern Natl., Sioux Falls, S.D.

Mr. Burr reviewed the various free­
doms we enjoy—press, practice of re­
ligion, job selection and movement,
etc., and pointed out that Americans
today can enjoy the monetary fruits
of their labor to as great an extent
as they are willing to work. “ It is
our duty,” he reminded, “to love it
(the constitution), defend it and pro­
mote it. This is our individual respon­
sibility.”
He asked, “What is our capital in­
vestment in these freedoms? Being
aware daily of not only our own
rights, but also those of others, with
respect for our fellowman and his dig­
nity. . . . We look to you bankers for
some of the needed leadership today
. . . you are supposed to be among our
leaders, so assume your responsibili­
ties Your capital investment in free­
dom starts right here today Are you
willing to accept it? I turn it over to
your hands”
Iowa conventions are noted for the
outstanding speakers, of course, and
the same is true of the fine entertain­
ment provided during the convention.

CENTER— Raymond Burr, star o f CBS’ “ Perry Mason” TV
show, listens intently to question during press conference just
prior to his appearance as final speaker on Iowa convention
program. RIGHT— The new Iowa Bankers Association presi­
dent and his w ife, Mr. and Mrs. Charles H. Walsh, Burlington.
He is pres., Farmers & Merchants Savings Bank there.
Northwestern Banker, November, 1963

Iowa News
This year two of the highlights were
the buffet supper-dance at Val Air
ballroom with music provided by
Sammy Kaye and his orchestra, pro­
nounced a resounding success by the
overflow crowd jammed into this big
ballroom, and Liberace, who proved
himself a smart showman besides an
adept artist at the piano.
The 77th annual convention of the
Iowa Bankers was a memorable one
that was well worth the time of the
nearly 5,000 registrants.—End.

The Iowa State Banking Board ap­
proved a detached teller facility for
the State Savings Bank of Council
Bluffs at its regular monthly meeting
in October. The facility will be at
34th and West Broadway.

made by a group headed by Don Noller, president of the First National
Bank, Evansdale.
Clear Lake, a town of 6,200 in a re­
sort area, is served by one bank at
present, the Clear Lake Bank & Trust j
Company. Deposits are $6.5 million
and loans are over $4 million.

Charter Clear Lake Bank

Charles J. Spies

The Comptroller of the Currency
has approved the application for a
new national bank in Clear Lake,

Charles J. Spies, president of the
Iowa Trust & Savings Bank, Emmetsburg, died November 4.
,

Aprove Teller Facility

EXH IBITO RS received visits from many bankers. LE FT: Earl
E. Van Steenhuysen, a.c., Plaza State, Des M oines; Paul Joyce,
rep., Tension Envelope Corp., Des Moines; Doyle A. Butts, exec,
v.p., East Des Moines Natl.; Geo. J. Buser, Jr., exec, v.p., Plaza

State, and Charles T. Werner, Jr., rep., Tension Envelope.
RIG H T: Don Frankland, rep., Des Moines, and Jack Ludwig,
reg. mgr., Omaha, both with Recordak; G. E. Allbee, pres., and
J. Peter Olesen, v.p., both with Peoples B&T, Waterloo.

LEFT— Bernard Miller, a.v.p., Drovers Natl., Chicago; Arthur
J. Bird, exec, v.p., Tama State; Herbert Schneckloth, v.p., Cen­
tral T&S, Eldridge, and Keith Campbell, pres., Citizens State,
Sheldon. RIG H T— Carroll W. Grimes, pres., 1st Natl., West

Union; Victor M. Meyer, v.p., Commercial Trust and Savings
Bank, Charles City; Dale C. Smith, v.p., Central Natl. B&T,
Des Moines, and Prentiss G. Folvag, cash., Benton Co. Sav.,-<
Norway.

LEFT— George B. Woodard, Jr., dir., 1st Natl., West Union;
Otto Preus, v.p., Marquette Natl., Minneapolis; Robert J. Ral­
ston, farm rep., 1st Natl., West Union, and John T. Pain, Jr.,
a.v.p., Marquette Natl. CENTER— Robert R. Brown, pres., and
Keith M. Strother, 1st v.p., both with Hardin Co. Sav., Eldora,

and Richard S. Gwinn, regional dir., Diebold, Inc., Des Moines.
RIGHT— Dick Weyrauch, v.p., 1st Natl., Minneapolis; Ray R.
Downing, v.p., State Bank o f W averly, and Don Wenthe, v.p.
& cash., Natl. Bank o f Waterloo, pictured at the luncheon hosted
each year by the Minneapolis bank.

Northwestern Banker, November, 1963


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89

NEARLY A
CENTURY OF SERVICE
TO THE BANKS AND
PUBLIC OF IOWA

Ä IL iL S iy
^ E 3 ÏD )

H 3 ¿ 3 iK IÍ J 5
(O ©

m

W & ,

Des Moines, Iowa

Walnut at Fourth
F.D.I.C.


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Northwestern Banfcer, November, 1963

90

Iowa News

M o r e P ic t u r e s f r o m th e I o w a C o n v e n tio n

LEFT— Myron Ackley, pres., South Ottumwa
F. Addison Jones, exec. v.p. & cash., Grinnell
Sauter, pres., Iowa T&S., Oskaloosa, and Ray
Natl., Chicago. RIGHT— Bill Miller, sr. v.p.,

Sav., Ottumwa;
State; Herb W.
Dieball, a.c., 1st
Continental Illi­

nois Natl. B&T, Chicago; Joe Snyder, a.v.p., Manufacturers
Hanover Trust, New Y ork; Ed Buckley, chmn., Central Natl.
B&T, Des Moines, and Art Frey, v.p., Continental Illinois, pic­
tured at the luncheon hosted by the Chicago bank.

N ational pi

IN S U R
F ì Nj
L insÆ

LEFT: Keith Jung, sales rep., Cummins Chicago Corp., Des
Moines, discusses equipment for new Spencer Natl. Bank at
Spencer with H. A. O’Farrell, v.p., and R. L. Krzmarzick, exec,
v.p., both with Spencer Natl. CENTER: Chuck Gustaveson,
sales rep., Natl. Fidelity Life, Des Moines, enjoys a visit with

Vern W. Howe, dir., Dunlap Sav., and Dick Miller, sales rep.,
Natl. Fidelity L ife, Des Moines. RIG H T: Bob Knott, owner of
Iowa Stamp and Marking Co., shows latest sales promotion item
for banks to Peter J. Dykema, v.p. & cash., Iowa State Sav. at
Creston.

REGISTRATION work at the IB A convention has been super­
vised for many years by S. G. Barnard, v.p. & cash., Bankers
Trust, Des Moines, who is shown at left with his “ girls,” who
staffed the registration desk. They are commercial college stu­
dents in Des Moines. RIG H T: Myron Ackley, pres., South Ot­

tumwa Sav., and R. E. Wollenhaupt, v.p., State Sav. Fontanelle,
receive literature from two “ Savings Bonds Girls,” Vi Geyer and
Gladys Ver Ploeg, who are dressed appropriately in special red,
white and blue dresses. Glenn Ingle, state dir. for the U. S.
Savings Bonds division, is at right rear.

Northwestern
Banker, November, 1963
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Federal Reserve Bank of St. Louis

91

BANKER-EMPLOYERS
BENEFIT FROM
ESTABLISHMENT OF
PENSION PLANS
Many banker-em ployers find real advantages in establishing
pension a n d /o r p rofit-sh aring plans w ith in th e ir own banks.
For example, the payments you— as an em ployer— make
into a form al pension plan are deductible. Your excess
p ro fits can be directed through your tru ste e into your
bank’s re tire m en t fund. This is a means o f tu rn in g taxvulnerable money into a deductible item .
In addition, w hat th is fund earns is not sub ject to income
tax. You sim ply tu rn your money over to your tru ste e fo r
investm ent, the income on it is reinvested— and the fund
grows. This magic com bination of compound in te re st and
exem ption from tax means th a t you, as an em ployer, may
have to con tribu te a re latively small am ount out-of-pocket
to provide pensions w hich mean peace o f mind and security
fo r your employees. Meanwhile, of course, your own share
o f p ro fits can be protected fo r you.
The answers to all kinds of practical questions on the sub­
je c t of pension and profit-sh aring are the specialty o f the
Trust D epartm ent of City National Bank of Kansas City,
M issouri. “ Can my bank have both a pension and a p ro fitsharing plan?" some bankers ask.
The answer?— C ertainly. Many banks as w ell as ind u stria l
firm s w hich started w ith a pension plan, fo r example, have
now installed profit-sh aring to provide re tire m e n t benefits
th a t are adequate in the lig h t of cu rre n t in fla tio n a ry prices.
“ Can I d ire ct the investm ent of my fun ds? ” Yes, you can.
Through a ‘pension com m itte e ’, composed of employees or
o ffic e rs of your bank, you can approve or disapprove in­
vestm ents recommended by your tru ste e. Or you can even
have absolute d iscretion to invest as you deem proper.
As a pioneer in the fie ld of pension and p rofit-sh aring plan
establishm ent, C ity National has the experience and know l­
edge to assist you in every phase o f re tire m e n t planning.
(And, you can augm ent the services of your own bank by
u tiliz in g th is same City National experience to o ffe r re tire ­
m ent planning counsel to your corporate custom ers.)
If you would like additional inform ation, ju s t call or w rite
the men in the correspondent departm ent at City National.
When it comes to pension and profit-sh aring plans, you w ill
fin d it pays to be a correspondent of City National Bank
o f Kansas City.

City National Bank & Trust Company
10th & G ran d , BAltim ore 1-6800
Kansas C ity, Missouri
Member Federal Deposit Insurance Corporation


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Northwestern Banker, November, 1963

92

Iowa News

J e f f e r s o n H a n k O ffe rs
I
H i q u e C u s to m e r S e rv ic e s
unique services now being of­
T WO
fered customers of the Home State
Bank, Jefferson, will be of interest to
bankers in other N o r t h w e s t e r n
B anker areas.
For the past two years, bank offi­
cers and directors have been hiring an
airplane about the third week in Aug­
ust and flying over Greene County ob­
serving the corn crop, especially for
fertilizer applications and other cul­
tural practices. The practice has been
an “eye-opener” for members of the
bank staff, so that next year it is
planned to charter a plane and give
farm customers an opportunity to see
the differences in farm production.
Another project that has received
excellent response from farm custom­
ers is a series of meetings on cattle
feeding. The bank has installed a
loud speaker hookup to its telephone
in the community room. Cattle feeder
customers are invited and prior arrangemente are made to talk to men
like Jack Shonsey, executive vice pres­
ident, The Omaha National Bank, and
to Ken Jameson of the Colorado Ex­
tension Service. Questions are formu­
lated, a long distance call is placed,
and the group receives answers on
moisture and range conditions, etc.,
for a period extending from one-half
hour to one hour.

Over 1 ,0 0 0 Attend Open
House at Alta Bank
Following completion of an exten­
sive remodeling project, the First
Trust and Savings Bank, Alta, held
open house for more than 1,000 people
in the area last month, according to
George W. Morrow, executive vice
president and cashier. Becker Man­

ufacturing Company, Alta, handled
the building project.
Work was started in March and was
completed about July 15. Outstanding
features include: a clock on the face
of the building and a special lighting
arrangement directed to the clock and
building front in the evening.

ment of Earl M. Henderson as farm
representative for the bank. Mr. Hen­
derson was formerly employed by the
Webster County Extension Service.
He is a graduate of Iowa State Uni­
versity Ames.

Observe 50th Year
At Andrew Savings
The Andrew Savings Bank observed
its 50th anniversary last month by
holding open house. Hosts included
the officers and directors, according
to E. V. Flint, cashier.

Truro Opening
Following completion of an extentensive remodeling project, the Truro
office of the Union State Bank of Winterset held open house last month.
Effie Spencer is manager of the office.

Sponsor Music Festival
The Farmers Savings Bank, Kalona,
sponsored a music festival in the
town’s junior gym last month. Two ^
groups from Rock Island were fea­
tured.
NEW LOOK at the First Trust & Savings
Bank, Alta.

The exterior of the building was
sand blasted; new thermopane win­
dows were added; modern semi-circu­
lar counters were installed and the
lobby was enlarged. An attractive
addition to the bank is the new gold
drapes. Walnut paneling in the direc­
tors’ room also is a special feature.
The new acoustical ceiling, terrazzo
floor tile, modern walnut furniture,
and new light fixtures have added to
the appearance of the bank. A night
depository was also installed.

Name Kellogg Director
James L. Anderson, vice president
of the Kellogg Savings Bank, has been
named to the board of directors to
replace the late Henry Willemsen.
Mr. Anderson has been manager of
the bank’s Sully office since 1942.

Heads Fort Madison Bank

Ellsworth O. Thomas has been pro­
moted from executive vice president
to president of the Lee County Sav­
ings Bank, Fort Madison. He sueceeds the late Malcolm F. McFarland.
The bank also announced the pro­
motion of Richard L. Schneider to
Fort Dodge Farm Rep
vice president and Roy G. Weddington
O.
B. Lundgren, president of U ' to cashier and trust officer. Emerson
Union Trust and Savings Bank, Fort E. Cooper was named as a new direc­
Dodge, has announced the appoint­ tor.
A

Pictures from the Iowa Bankers Convenlion
PICTURED on the opposite page, from left to right in each
photo, are:
1. Dick Weyrauch, v.p., 1st Natl., Minneapolis; Ben H. Wooten,
chmn., 1st Natl., Dallas, Tex., and John T. Hamilton II, pres.,
Merchants Natl., Cedar Rapids.
2. Rudy Schroeder, pres., Iowa County Sav., M arengo; Allen
P. Stults, pres., American Natl. B&T., Chicago; Bill Aldrich,
a.c., American Natl.; Mrs. Schroeder; Wm. P. Ronan, pres., De­
corah State, and W. D. Milligan, rep., American Natl.
3. Bill Sherman, a.v.p., City Natl., Kansas City; Gilbert Tootle,
v.p., Tootle-Enright Natl., St. Joseph, Mo., and Jim Brown, v.p.,
Mercantile Trust, St. Louis.
4. Larry Frowick, v.p., Continental Illinois Natl. B&T, Chicago;
Mrs. Frow ick; Jim Maurice, pres., M onticello State, and H. E.
“ Zip” Long, pres., Gulf-to-Bay Bank, Clearwater, Fla.
5. Ward Hatter, v.p., Iowa County Sav., Marengo; Bob Tank,
pres., Central T&S, Eldridge; H. A. Schroeder, dir., Bank of
Galt; Fred Cummings, v.p., Drovers Natl., and M. C. Schroeder,
cash., Bank of Galt.
6. Jacob Breitbach, dir., Gilbertsville Sav.; Henry Visser, exec.
Northwestern Banker, November, J963


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v.p. & cash., 1st Natl., Hawarden, and G. E. Leighton, pres.,
Chicago Livestock Exchange.
i. Charles W alcott, v.p. at 1st Natl., Chicago, and a former pres. ^
o f the Iowa Bankers Association, admires ivory gavel shown
by retiring IB A President Herb Ollenburg to him, and Dale
DeKoster, pres., Waterloo Sav.
8. Joe Lisek, v.p., Live Stock Natl., Chicago; T. Edward Batty,
pres., 1st State, R ockford; Melvin G. Happel, cash., Farmers
Sav., V ictor; Lloyd Hasselbusch, cash., Clarence Sav., and How­
ard Beermann, a.v.p., Live Stock Natl., Chicago.
9. Tom Huston, v.p., Columbus Junction State, and retiring pres,
of Iowa Club o f School of Banking; Mel Shanda, v.p. & cash., <
Home State, Jefferson, and new pres, o f the Iowa Club, and
Homer Jensen, a.v.p., Bankers Trust, Des Moines, and v.p. of
the Iowa Club. New secy.-treas. is Harlan Pose, a.c., 1st Natl.,
New Hampton, not present for the picture.
10. Allon McGlothlen, a.v.p., Valley B&T, Des Moines; Clarence
E. Dahl, pres., Kiron State; Ed Spetman, pres., and E. L.
Shockey, v.p. & t.o., both with Council Bluffs Sav., Council
Bluffs, and Neal Sands, pres., Valley B&T, Des Moines.

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94

Iowa News

P l a n It u n v h -'T if p v B u il d in g

including the lot. The new building
cost is approximately $100,000.
Deposits are currently over $2 mil­
lion. Capital and surplus total $130,000. W. F. Borcherding is cashier and
active manager of the bank.

Remodel Bank at Royal

ARCHITECT’S DRAWING of new Morningside State Bank building in Sioux City.
o n s t r u c t io n

has started on a

C new building for the Morningside
State Bank at 1901 Morningside Ave­

nue in Sioux City, according to Neal
C. Tennis, president. The architect
is James M. Duffy.
The new 50 by 80 foot building will
be patterned after a ranch-style home.
Inside the lobby will be a large
stone fireplace in an effort to “make
our customers feel at home,” said Mr.
Tennis. The interior of the new bank
will also feature wood beams and
decking.
The new bank building will be lo­
cated directly behind the current
bank, which will be in operation
throughout the construction period

for the new bank building. Once the
new building is ready to roll, the old
bank building will be torn down. In
its place will be a rock garden and
grass.

Fredericksburg Open House
The First State Bank of Fredericks­
burg held an open house last month
following the completion of its new
banking home. Wildes Construction
Company of Waterloo was the general
contractor.
The new building is located on the
same site where the first bank started
in 1883. A second bank building was
built in 1903 at a cost of under $5,000,

Larry Olson, vice president and
cashier of the Home State Bank,
Royal, has announced that the bank is
undergoing a complete remodeling of
the interior. The project includes: 4
new curved walnut counters, custom­
ers’ lounge area, carpeted directors’
room and employees’ lounge, new cou­
pon booth, ceramic tile floor, lowered
ceilings with recessed lighting, pri­
vate office, and central air condition­
ing. Completion is planned for De- 't
cember 1.

Iowa Bond Sales
Iowa residents invested over $1 mil­
lion more in United States savings
bonds during September, 1963, than
they did in September, 1962, according*to a report released by Glenn L. Ingle,
state director of the savings bonds
program.
Total sales in all of Iowa were $8,163,083, raising the nine-month total
to $88,665,340 for 75 per cent of its
1963 quota. National average for the *
period was 82 per cent.

Sioux City Office Manager

Chicago
Water
Tower . . .

MERCHANTS
MUTUAL

famous
. . . a landmark known to
Chicago visitors . . .
equally renowned in the
heart of the loop is the
44 story high

BONDING
COMPANY
Home Office
2100 GRAND AVEN U E

Des Moines, Iowa

Cedar Falls Promotion

C A R O U SEL-IN -T H E-SK Y

(50 mile view of the city)
• No c o v e r • No m in im u m
• No e n te rta in m e n t ta x

luncheons from $2
dinners from $3.50
. . . 1800 newly
decorated rooms
and suites

This is Iowa’s oldest surety company.
A progressive company with experi­
enced, conservative management.
We are proud of our three hundred
bank agents in Iowa.

S in g le s fro m $ 7 .5 0
D o u b le s fro m $ 1 0 .5 0
T w in s fro m $ 1 3 .5 0

o r r ld e K

W. W. WARNER
President

H O TEL

M. J. CORBIN

Clark and Madison Streets
Chicago, III. • Tel. 372-9600

Vice President

Northwestern
 Banker, November, 1963
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Federal Reserve Bank of St. Louis

Wilfred L. Buck, former cashier of
the Woodbury Bank and Trust Com­
pany, Sioux City, has been named as­
sistant vice president and manager of
the Badgerow Building office of the
First National Bank in Sioux City. <
The Woodbury Bank and Trust
Company was officially merged with
the First National Bank last month. *
Joe Grant will continue as president
or the organization, and Fae A. Evans,
former Woodbury president, will be
the executive vice president of the^
new institution.
Donald Lindaman has been pro­
moted to assist­
ant ca sh ie r by
the Cedar Falls*Trust and Sav­
ings Bank, accord­
ing to Richard D.
King, a ssista n t
vice president.
Mr. Lindaman
has been with the-<
bank o v e r six
years, and he will
D. L I N D A M A N
continue to han­
dle the installment loans for the bank,
tinue to handle the installment loans
for the bank.

Iowa News
Name Spencer Officers
Walter Kriens of Spencer has been
named president of the newly-char­
tered Spencer National Bank. The
bank is to be located in a shopping
> center on the north side of the city.
R. L. Krzmarzick, former assistant
cashier of the Farmers and Merchants
State Bank, Springfield, Minn., is the
new executive vice president.
Duane Grant, former cashier of the
Farmers Savings Bank, Remsen, has
> been elected vice president and cash­
ier of the new institution.
Work on the new building quarters
has started, and it is expected to open
for business in about 60 days.
Directors will include: Mr. Kriens,
Mr. Krzmarzick, Thomas Shaffer, Ger­
ald L. Pearson, R. R. Jackson, George
Fieselman, all of Spencer, and L. D.
Colbert and Herman Galm of Royal.

Davenport Promotion
Russell C. Makeever, special repre­
sentative of the First National Bank,
j Davenport, has been elected assistant
vice president. The bank has been in
operation since August 3, as a part of
the Brenton Group of banks. Mr. Ma­
keever was formerly with Investors
Diversified Services. Dean Duben is
the executive officer of the bank.

A Tripoli Plans Building
Bids were taken last month for a
new bank building for the American
, Savings Bank, Tripoli.
A site for the new building was pur­
chased earlier this year, and work will
start this fall.

Schleswig Bank Sold
y

At a meeting of the Farmers State
Bank, Schleswig, J. A. Rohwer, presi­

dent, announced that the members of
the Theodore Rohwer family have
sold their stock in the bank to E. W.
Claussen, vice president and cashier;
A. J. Sinn, and Larry Clausen, assist­
ant cashiers.
J. A. Rohwer, president, retains
enough stock to qualify him as a di­
rector and will continue to stay active
in the bank’s affairs. It is contem­
plated some changes in officers’ titles
will be made in January. E. W. Claus­
sen has been with the bank 17 years;
A. J. Sinn has been with the bank for
11 years, and Larry Clausen has com­
pleted five years.

Joins Albia Bank
Ross E. Gould has been elected cash­
ier of the Peoples National Bank, Al­
bia, according to
J. E. King, presi­
dent.
Mr. Gould is a
former cashier of
the Clarke County
State B ank in
O sceola. He re­
signed this posi­
tion to serve for
four months with
the
S a cra m en to
R. E. G O U L D
o f f i c e of the
Crocker-Anglo National
Bank in California. He started his
banking career in the Murray office of
the Osceola bank.

95

of ‘W orld Who’s Who in Commerce
and Industry.”
The award was announced in Chi­
cago by Jackson Martindell, chairman
of the board of Marquis—Who’s Who.
In effect for its sixth year, the New
London State Bank Scholarship Pro­
gram at Iowa Wesleyan College pro­
vides $750 a year to graduates of New
London High School.

Heads C o f C
Robert Knapp, executive vice pres­
ident and cashier of the Bettendorf
Bank and Trust Company, Betten­
dorf, was elected last month as in­
coming president of the Bettendorf
Chamber of Commerce. He will take
office January 1 for a one-year term.

OUR M E N KNOW

Honor New London Bank
The New London State Bank, be­
cause of its support of Iowa Wesleyan
College, has received one of the cita­
tions for educational philanthropy
awarded biennially by the publishers

Serving Iowa Banks with

CREDIT LIFE
and

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3924 74th street
Des Moines, Iowa

A w holly owned subsidiary o f the 10,000
stockholders o f L ife Investors o f Iow a

INVESTORS LIFE
INSURANCE CO.
Provide your customers
with Credit Life Insurance through the company they own

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

LIVESTO CK
^ M a rke tin g
^
^

Financing
and C orrespondent
Banking Services

F IR S T
STOCK YAR D S
BANK
S outh S a in t Joseph, M o.

Only

bank in th e Y a r d s f i

Northwestern Banker, November, 1963

96

Iowa News

IMAGE . . .
(Continued from page 32)
important admonitions:
1. Consider the other persons’
feelings.
2. Be tolerant of others’ opinions.
3. Use constructive approaches to
problems of customers.
4. Use every effort to keep abreast
or ahead of the times.
5. Never brush off a customer.
(i. Make no wisecracks reflecting
sarcasm or temper.
7. Soundness demands that we
know the source of payment of
a loan when it is made.
8. Be a salesman of our bank’s
services.
SEVER AL THOUSAND persons attended a grand opening last month of the new
quarters of City National Bank in Council Bluffs. The greatly expanded offices provide
new facilities for both customers and staff of the bank.
One of the principal features of the remodeling is the installation of the first TV
Drive-Up banking windows in the area. Installed by TV Bank Corporation of Indian­
apolis, the two electronically equipped windows provide remote control television con­
tact, both audio and visual, between the drive-in customer and the bank teller inside
the bank. Items to be handled between the window and the teller station are sent by
pneumatic tube.
Pictured above, cutting a ribbon of dollar bills to open the TV Drive-In service is
Miss Council Bluffs, Karen Johnson. A t left is Robert W. Turner, chrnn., and at right
is Ronald H. Tornblom, pres., of City National.

Kit Speeds Clerking at Sales

Good images are possible only when
good employee relations prevail so
let’s always remember that our em­
ployees give us what we deserve.
There are invigorating groups of
personalities that we find in all good
image banks: (1) Radiant—exudesv
inspiration, enthusiasm and fellow­
ship. (2) Helpful—a sincere desire to
do good. (3) Friendly—not only in
form but in practice every day. (4)
Educated—not high brow, just took
time to learn banking. (5 Soundness—
evidenced by good operations inspir­
ing confidence. (6) Affirmative—pos­
itive approach to every problem of
the customer. (7) Modern—building,
equipment and machines giving em­
ployees a good chance to do a good
job. (8) Corporate citizenship — em­
bodying personal leadership and pay­
ing one’s share. (9) Industrially alert
—seeking ways to better serve the
customer and city. They are the
builders of fine images.
How

PLASTIC sorting cabinet is shown at left in left photo, mounted on steering wheel desk.
Beside it is plastic, double clip listing board for the listing clerk. Photo at right shows
sorting cabinet and writing desk mounted on steering wheel for convenience of sales clerk.

For Auction Sale Clerks
COMBINES ALL THE FEATURES YOU DEMAND
Receipts for Each Buyer

•

•

Combats Skip Buyers

No Additional Listing

•

•

Speeds Up Settling

No Posting of Accounts

*

•

Buyers Like It

Absolutely the only outfit on the market combining all these features—
sold on a money back guarantee.

BLACK SALE SYSTEM
♦Telephone Nos. 536-2651 or 536-2522

Fullerton, Nebraska
Write Us for Sample Sh eets and Information
Northwestern Banker, November, 1963

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

to J u d g e

How does a customer judge a bank?
1. By the way the president speaks^
to the man with the small ac­
count.
2. By the way the girls answer the
telephone.
3. By the way the secretary has the
individual wait until he can see
the officer.
b
4. By the way the borrower is han­
dled who is probably entering
upon his life’s greatest financial
enterprise.
5. By the way the teller, the jani­
tor, the stenographer, the porter
refer to the president when they-f
are away from the bank.
6. By the way the teller hands the
passbook to the customer.
7. By the way the borrower is noti­
fied that his note is past due.
8. By the way we tell a savings

low a News
customer that his account is not
subject to checking.
9. By the way we endeavor to ex­
plain a service charge.
10. By the atmosphere in the lobby,
>
plus the community service ren­
dered by the officials and the
place taken by the corporation
as such in supporting civic and
charitable institutions.
11. By the way letters are written.
Our image is reflected in every act
> of every employee during every wak­
ing hour and that image is either an
asset or a liability.
Banking is the b lo o d stre a m of
American business. Of all the crafts,
occupations or professions, none more
profoundly affects the destiny of int dividuals and the nation than that of
banking.
During the past three decades the
image of banking has greatly im­
proved but so have the images of our
competititors. Just being good is
never good enough. There is only
J one way to best a competitor and
that is to out-deserve him.—End.

97

tion of his family associated with the
bank.
His father, W. W. Summerwill, is
president of the bank, and his grand­
father, Ben Summerwill, is chairman.
Richard has been employed by the
Northern Trust Company, Chicago, for
two years. He is a graduate of the
University of Michigan.

He will be in charge of customer
services.

Enters Political Race
Robert L. Emerine, vice president,
City National Bank, Council Bluffs,
entered the political race in his city
by anouncing his candidacy for a seat
on the city council in the November
election.

New Council Bluffs Facility
City National Bank has been grant­
ed permission by the Comptroller of
the Currency to construct a detached
teller facility at 2901 Broadway in
Council Bluffs. It is expected to open
in December.

Third Generation Banker
W. Richard Summerwill, 27, has
joined the Iowa State Bank and Trust
Company, Iowa City, as an assistant
cashier, becoming the third genera­

D ro ve rs S e rv ice P rovides

IMMEDIATE
CREDIT

Buys Dunlap Bank
Richard Randall, cashier of the Dun­
lap Savings Bank, has purchased con. trolling interest in the bank.

on Livestock P roceeds

Joins Logan Bank
t

Gerald C. Petersen resigned last
month as Harrison County auditor to
join the staff of the First National
Bank of Logan.

Your c u s t o m e r s

c a n h a v e th e n e t p r o c e e d s fr o m

t h e i r li v e s t o c k s a l e s c r e d i t e d to t h e i r a c c o u n t s
in

your

b a n k f r o m o n e to t h r e e d a y s s o o n e r ,

w h e n t h e y u s e D r o v e r s c o l l e c t i o n s e r v ic e .
D r o v e r s “ Y e llo w

Moves to Postville
Philip A. Jacobson has resigned as
cashier of the Midway National Bank
of Cedar Falls to accept appointment
*■ as cashier of the Postville State Bank
at Postville, according to William A.
Kneeland, president of the latter
v bank.
Mr. Jacobson has been with Mid­
way National the past 16 months.
Prior to that he was a state bank ex­
aminer for four years and had also
been assistant cashier of the Roland
State Bank, Roland.

lOOtli Anniversary Event
The First National Bank, Marion,
held a special dinner party for stock­
holders and employees late last month
as a part of the bank’s 100th anniver­
sary celebration, according to Phil
> Morris, president.

Joins Anamosa Bank
Lewis M. Dreibelbis, former Jones
County sheriff, sta rte d work last
month as assistant cashier in the Citi­
zens Savings Bank, Anamosa.

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

Boy”

a d v ic e

is w e l l a n d

fa v o r a b ly k n o w n b y b o th b a n k e r s a n d s h ip p e r s .
I t is o n it s w a y to y o u w it h i n m i n u t e s a f t e r
th e s a l e is c o m p l e t e d . B e s u r e y o u r li v e s t o c k
cu sto m e rs

BERNARD M I L L E R ,
assistant vice p r e s i d e n t ,
representing The Drovers
Bank in Iowa, will be
happy to show you how
Drovers can offer imme­
diate credit.

Friendly service
to Livestock Producers
fo r more than
75 years

r e c e iv e

th is

tim e -s a v in g

s e r v ic e .

H a v e t h e m fill o u t a D r o v e r s S h i p p e r s O r d e r .
W e 11 g l a d l y s e n d a s u p p l y u p o n r e q u e s t .

Continuous service
to correspondent banks
since February 12,
1883

DroversNational Bank
UNION STOCK YARDS, CHICAGO 9, ILLINOIS
MEMBER, FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, November, 1963

98
He further stated that “the prospect
of a tax cut superimposed on an econ­
omy already moving at a good pace
suggests that there might need be lit­
tle concern about economic growth
and that, in fact, the concern over 4
growth rate might during the course
of the next year be replaced by fear of
inflation.”

Name Change at Gowrie

Iowa-Des Moines N a tion a l
THE
Bank has announced the election
of Earl F. Bucknell, president of Bank­
ers Life Company, to its board of di­
rectors.
The bank also announced the retire­
ment of George D. Jorgensen, vice
president. He was in the commercial
loan department.
*

* *

Extensive redecoration of the inte­
rior of the First Federal State Bank
has been completed, according to Mor­
ris Stephens, president. The lobby
floor has been carpeted, draperies have
been installed and the interior re­
painted.
*

* *

Richard C. Lee, vice president, Cap­
ital City State Bank, recently was
elected treasurer of the Des Moines
Independent School District.

Tells Public Officials
More Growth Ahead
Homer J. Livington, chairman of
the board, The First National Bank of
Chicago, and Herbert V. Prochnow,
president, presided at the bank’s sec­
ond annual Public Officials Conference
held recently in Chicago. The day
long conference and luncheon, de­
signed to provide information to state
and local governmental officials on the
financial aspects of political subdivi­
sions, drew 415 state, county and mu­
nicipal officials from Illinois, Indiana,
Wisconsin, Iowa and Missouri.
Speakers included vice presidents
from the bank’s bond and trust de­
partments as well as several outside
experts in governmental financing.
Tilford C. Gaines, vice president of
First National’s government bond de­
partment, forecast an increase in in­
terest rates on U. S. securities later
this year or early in 1964.

The First National Bank of Gowrie
has converted to a state bank effec- 4
tive October 28, and is now known
as the first State
Bank of Gowrie. ,
T h i s announce­
ment was m a d e
last month by C.
A . R o w e , vice 1
president and op­
erating head of
the bank.
H
Mr. R o w e , in
reviewing the his­
tory of the bank,
C. A. R O W E
pointed out that A
the bank originally was organized in
1883 as a state bank under the title
of Webster County Bank of Gowrie. s
The charter was changed to a na­
tional one in the early 1900’s, at which
time the First National name was
adopted. The present conversion to ►
First State Bank of Gowrie returns
it to state bank status.
In a later move, subsequent to the
recent change to a state bank char­
ter, Mr. Rowe said authorization had
been received to convert capital from
$25,000 capital and $100,000 surplus
to $75,000 capital and $75,000 surplus.

Sehoois Receive Freedom Shrines

FREEDOM SHRINES were presented to three Des Moines
schools recently by three Des Moines banks. The project is
sponsored by the Exchange Club with the cooperation of local
businesses. Each Shrine consists of 28 historical American
documents. Above, representatives of the participating Des
Moines banks present plaques to each o f the schools. The
plaques, marking the event, w ill be prominently mounted in
each school. Shown are, from le ft: Elmer C. Betz, principal,
Northwestern
 Banker, November, 1963
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Tech High School; Paul Deer, president, Tech student body;
Robert Sterling, president, Bankers Trust Company. CENTER:
Duke Williams, principal, East H igh; Douglas Pierson, presi­
dent, East High student body; Don Davis, a.c., Capital City
State. RIG H T: Dr. Robert R. Denny, principal, North High;
Steve Lombardo, president, North High student body; George
Nelson, a.v.p., Central National Bank & Trust.

Iowa News

Camanche Opens

A V 'f r

Camanche State Bank opened
T HE
for business last month in a beau­

tiful new bank building. John D.
Lahn, formerly of Belle Plaine, will
be the executive officer of the bank
with the title of cashier.
The Camanche community is one of
the fastest growing areas in Iowa. It
is located seven miles south of Clinton
on the west bank of the Mississippi
River and its population—now about
2,400—has doubled in the past few
years. Industries located in the area
include: Dupont, Central Steel Tube,
Hawkeye Chemical and Warren in­
dustries.

R. O. W I L S O N

Mrs. Roberta Gilcrist
Mrs. Roberta Gilcrist, secretary for
many years to L. W. Ross, chairman
of the Council Bluffs Savings Bank,
died last month of injuries sustained
in a car accident.

IOWA BANK SALES
Brokers in Bank Securities
616

Retires From Harris Trust
Wendell C. Griffith, vice president
and head of the employee trust divi­
sion of Harris Trust and Savings
Bank’s trust department, retired Octo­
ber 31 after 41 years with the bank.

Eldora Building Plans
R. R. Brown, president of the Har­
din County Savings Bank, Eldora, has
announced that plans are being stud­
ied for a possible remodeling of the
bank in the spring of 1964.

NASSB Appoints Stafford
Clay W. Stafford, Iowa superintend­
ent of banking, has been reappointed
as a member of the executive commit­
tee of the National Association of Su­
pervisors of State Banks. Mr. Stafford
served in the same position during
the past year ending October, 1963.
His appointment was announced by
C. V. Pierce, chief examiner of South
Carolina, who was elected president
of NASSB at the group’s convention
in Williamsburg, Va., last month.

J. D. L A H N

R. O. Wilson, president, states that
capital accounts are: capital, $75,000;
surplus, $37,500, and undivided profits,
$37,500. Original issue of capital stock
is held by 46 shareholders.

L IC E N S E D

99

AN D

M cC oy

BONDED
D r iv e

CARROLL, IOW A


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

1st, St. Louis, Director
Henry W. Large, president of the
Wabash Railroad, has been elected a
director of First National Bank in St.
Louis, according to James P. Hickok,
chairman of the bank’s board of di­
rectors.
Mr. Large succeeds Herman H. Pevler who recently resigned as president
of the Wabash to become president of
the Norfolk and Western Railway.
Mr. Pevler will continue to serve the
bank as a member of its advisory
board.

ACORN

Sale
Registers

"Accepted Sale Registers by Bank
Clerks Everywhere"
For i n l o r m a t i o n w r i t e

THE AC O R N PRINTING CO.
Oakland, Iowa

announcing

T h e TP 2 5 s
• Is direct mail a good way to advertise
banking in this area?
• How can a banker be sure that the
material he sends will be read—

For just $25— y o u c a n g e t t h e
a n s w e rs — d ire c t fr o m 2 5 le a d in g
fa rm e rs th a t yo u k n o w .
For just $25— y o u d o n o t h a v e
to d e p e n d o n th e e x p e rie n c e o f
o th e r b ankers.
For just $25— y o u g e t a t u r n k e y
p r o g r a m a n d n o o b lig a tio n s .
An

in tro d u cto ry

le tte r explains the
Each panelist is asked
to contact you personally.
Samples and com plete
in fo rm a tio n
about o th e r in tro d u cto ry plans are a va il­
able. Preference Ratings help evaluate
yo u r present service. Trade Area Surveys
help you develop a m ailin g list.

Trial Period plan.

THE F A R M PIC TU R E
^ O J O IM F ^ R B A N A J L U N O IS j
A tta c h coupon to your b a n k’s letterhead

| | Here is our list of 25 farmers.
□ Our $25 check is enclosed
□ Send bill to the bank
W e w ould like to have more in fo rm a ­
tio n and samples o f the form s used fo r

□ The TP 25 mailings
□ The Trade Area Surveys
□ The Preference Ratings
| | Ask your representative to call
Signed______________________________
T itle ________________________________
Bank Nam e_________________________
Address_____________________________

Horthwestern Honker, November, 7963

100

Iowa News
C
C a d illa c A s s o c ia t e s , I n c ................................. 40
C e n tr a l B a n k an d T r u s t C o m p a n y —
D e n v e r .............................................................. 76
C e n tr a l N a t io n a l B a n k an d T ru st
C o m p a n y — D es M o in e s ........................... 20
C e n tr a l S ta te s H e a lth an d L ife Co. ..1 0 3
C h a se M a n h a tta n B a n k , T h e ....................
7
C h iles & C o m p a n y .......................................... 74 j
C h r is tm a s C lu b a C o r p o r a t io n ................ 35
C ity N a t io n a l B a n k an d T ru s t
C o m p a n y — K a n s a s C ity ........................... 91
C o m m e r ce T r u s t C o m p a n y ......................... 83
C o n tin e n ta l I llin o is N a tio n a l B a n k and
T r u s t C o m p a n y .......................................... 33
C u m m in s -C h ic a g o C o r p o r a t io n . .42-43, 101

A t H e r t in W a t t

D

D a v e n p o r t , F . E., an d C o m p a n y ..8 2 , 100
D e L u x e C h e c k P r in te r s , I n c ........................
8
D e n v e r -U n ite d S ta te s N a tio n a l B a n k .. 66
D ie b o ld , I n c ........................................................... 31 i
D o a n e A g r ic u lt u r a l S e r v ic e , In c. ..4 7 , 100
D o u g la s -G u a r d ia n W a r e h o u s e C orp. . . 10
D o w n e y , C. L., C o m p a n y ............................. 34
D r o v e r s N a tio n a l B a n k ............................... 97
D u rox
................................................................. . 51
F
F a r m B u s in e s s C o u n cil, I n c ........................ 99
F ir s t N a t io n a l B a n k — C h ic a g o ............ 14-15
F ir s t N a tio n a l B a n k — D e n v e r ................ 38
F ir s t N a t io n a l B a n k — K a n s a s C ity . . . 16
F ir s t N a t io n a l B a n k — O m ah a .................. 77 ^
F ir s t N a t io n a l B a n k an d T r u s t
C o m p a n y o f L in c o ln ................................. 81
F ir s t N a tio n a l B a n k an d T ru st
C o m p a n y — T u ls a ........................................ 64
F ir s t N a tio n a l C ity B a n k o f N ew Y o r k . 17
F ir s t S to c k Y a r d s B a n k — S ou th St.
J o s e p h ............................................................... 95
F o u n d a t io n f o r C o m m e r cia l B a n k s . . . . 69

Kenneth J. Benda of Hartwick,
Iowa, executive vice president of
Hartwick State Bank, r e c e n t l y
viewed the Communist W all separat­
ing East Berlin from the free world.
A member of the recent study tour
o f Radio Free Europe’s facilities in
West Germany, Mr. Benda is shown
here recording his impressions of the
Communist barrier for a Radio Free
Europe reporter.

G
H

G ross, K ir k , C o m p a n y ...................................100
6^
H a ls e y , S tu a r t an d C om p a n y , I n c ..................
H a r r is T r u s t a n d S a v in g s B a n k ............. 11
H o t e l H e n r y H u d s o n .................................... 36
H u m m er, W a y n e , a n d C o m p a n y ........... 54
I

I n v e s t o r s L ife I n s u r a n c e C o m p a n y o f
I o w a ................................................................... 95
I o w a B a n k S a les ............................................. 99
I o w a - D e s M o in e s N a tio n a l B a n k .......... 104
I o w a P o w e r a n d L ig h t C o m p a n y ........... 40
I r v in g T r u s t C o m p a n y .................................. 41

I X D E X OF

L,

A D V E R T ISE R S

M

A

A c o r n P rin tin g ' C o m p a n y ........................... 99
A m e r ic a n E x p r e s s C o m p a n y ................52-5
A m e r ic a n N a tio n a l B a n k an d T ru s t
C o m p a n y — C h ic a g o .................................... 7
B

B a n k o f A m e r ic a .............................................
B a n k B u ild in g a n d E q u ip m e n t
C o r p o r a t io n ....................................................
B a n k o f M o n tr e a l ...........................................
B a n k e r s T r u s t C o m p a n y — D es M o in es .
B la c k S ale S y ste m ........................................

2
3
3
8
96

H
om
e &G
arden—
Real Pleasures
If You "Know How"
If you’ve conquered drippy faucets;
graciously accepted guests’ compli­
ments on your roses; saluted a $50
drop in your fuel bills, you know that
good “know-how” feeling — the same
feeling readers of Doane’s “Home and
Garden Care” have.

Winning Friends
Is Profitable
It is pleasant to send advertising
messages that prospects appreciate.
Banks everywhere build good will
among depositors and borrowers with
monthly “Home and Garden Care.”
Timely, practical advice on how to
beautify the home, save money on
upkeep, get the most from tax and
insurance dollars. Exclusive in your
area.
Write For An
Introductory C o p y

5144 D elm ar Bivd.
S t . Louis 8 , Mo.

Northwestern
 Banker, November, 1963
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

►

L a M on te, G e o r g e & S on ............................. 55
L a w r e n c e W a r e h o u s e C o m p a n y ........... 45
L iv e S to c k N a tio n a l B a n k — S io u x C ity . 60
M a r q u e tte N a tio n a l B a n k ......................... 64
M e rc h a n ts M u tu a l B o n d in g C o m p a n y . . 94
M e rc h a n ts N a t io n a l B a n k ......................... 2
M id la n d N a tio n a l B a n k ............................. 59
M in n e s o ta C o m m e r c ia l M en ’ s
A s s o c ia t io n
................................................... 64
M o r r is o n H o t e l ................................................. 94
M o s le r S a fe C o m p a n y ................................ 12-13
M u rp h y , T h o m a s D., C o m p a n y .................. 44
M u tu a l F ir e a n d A u t o m o b ile C o.................... 54^

N

N a t io n a l B a n k o f C o m m e r ce T ru s t and
S a v in g s ............................................................
N a tio n a l C ash R e g is t e r C o m p a n y .........
N a tio n a l R e s e r v e L ife I n s u r a n c e C o ...
N o r th e r n T ru s t C o m p a n y .........................
N o r th w e s t e r n N a t io n a l B a n k —
M in n e a p o lis ...................................................
N o r th w e s t e r n N a t io n a l B a n k — S io u x
F a lls ...................................................................

79
49
63
3
56
62

O

O m ah a N a t io n a l B a n k ............................... 75
O m ah a P r in t in g C o m p a n y ......................... 82
R

R e c o r d a k C o r p o r a t io n

S

..................................

4

S c h w e s e r , R o b e r t B., C o m p a n y ................ 78
S m ith, P o lia n an d C o m p a n y .................... 82
S tu d ley , S h u p e rt T r u s t I n v e s tm e n t
C o u n c il ............................................................
9
T

T e n s io n E n v e lo p e C o .......................................101
T V B a n k C o r p o r a t io n ........................................ 19f"

U

U n ited S ta tes C h e c k B o o k C o m p a n y . . . 80
U n ite d S ta te s N a tio n a l B a n k — O m aha . 72

V

V a lle y B a n k an d T r u s t C o m p a n y —D es M o in e s ...................................................
V a lle y N a tio n a l B a n k o f A r i z o n a ...........

\\

89
48

W e s te r n M u tu a l I n s u r a n c e C o m p a n y . . 50
W e s t e r n a n d S o u th e r n L ife I n s u r a n c e
C om pany
........................................................ 44 ^

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

Iowa News

"lAU'tfV Chech " for I ititeli Comi

This huge cheek, measuring five feet by ten feet, recently was presented to the
Dubuque United Fund by the First National Bank of Dubuque. This check is an
actual reproduction of a legal cashier’s check drawn on the First National Bank.
The check was in the amount of $713.50. The check was deposited, intact, to the
United Fund’s general checking account at another bank and was cleared through
normal clearing house procedure.

y

Announce Mosler Stock Sale
4

The Mosler Safe C om pa n y an­
nounced in late October the declara­
tion of a 10 per cent stock dividend
and the filing of an SEC Registration
Statement covering a proposed second­
ary offering of 350,000 shares of com­
mon stock.

The 10 per cent stock dividend,
which will not affect the company’s
* policy of quarterly cash dividends,

will be paid on January 15, 1964, to
stockholders of record January 2.
The registration statement names
Edwin H. Mosler, Jr., John Mosler,
and Janet Mosler Coleman as selling
stockholders, who will continue to
control the majority of the company’s
outstanding stock. No company financ­
ing is involved. The public offering,
expected in November, will be made
by underwriters headed by Blyth &
Company, Inc.

ON THE COVER
MALL boys and grown men
have had at least one thing
in common for many years — a
love for model trains, especially
ones with steam locomotives and
old-fashioned whistles. Continen­
tal Illinois National Bank and
Trust Company of Chicago put
up an exhibit last month com­
plete enough to satisfy the most
nostalgic model or full-scale rail­
roader.
Pictured on the front cover are
Clair M. Roddewig (left), presi­
dent of the Association of West­
ern Railways, and John P. Hoff­
mann, vice president of Conti­
nental Illinois National, examin­
ing one of several brass, scale
model steam locomotives. The
exhibit was timed to coincide
with the opening of the Ameri­
can Railway Express Progress
Exposition last month at McCor­
mick Place.
The exhibit includes a rear
screen projection of a movie
short, “ Science Rides the High
Iron,” a series of pictures show­
ing the evolution of the locomo­
tive from a live horse to the lat­
est diesel-electric locomotive.

S

- AuUA'j vW'." A J A W V

TEN SIO N
ENVELOPES FOR
EVERY BANK SERVICE
Bank-by-M ail

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W ITH F R E E SECURITY
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HALLMARK PROMOTION

□ Please Send Me
S e c u r ity H a llm a r k
P r o m o tio n a l K i t

Y o u rs fo r th e a s k in g —a co m p le te packaged
p ro m o tio n th a t gives p ro sp e ctive cu sto m e rs
new reasons fo r o p ening an a cco u n t at your
bank. It p ro je cts a S e cu rity Im age to present
cu sto m e rs at the same tim e —one th a t a u to ­
m atica lly repeats its e lf every tim e a c u s ­
to m e r receives his cancelled checks.
T he C u m m in s S e cu rity H allm ark p ro m o ­
tio n in clu d e s a handsom e plaque to disp la y
in yo u r lo b b y th a t e xplains yo u r use o f per­
fo ra te d ca n ce lla tio n s fo r d e p o s ito r p ro te c ­
tio n ; a variety of a d ve rtisin g m ats fo r use in
local papers th a t te ll these new reasons fo r
banking w ith you; radio and te le visio n co m ­
m e rcia ls; p u b lic ity releases; envelope s tu ffers and o th er useful m aterial. It’s all yours
fo r the asking. J u s t check the box and
return th is ad to :

CUMMINS-CHICAGO


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Federal Reserve Bank of St. Louis

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Call your experienced
Tension envelope
specialist

ENVELOPES
Des M oines Factory and S a le s Office:

TENSION ENVELOPE CORP
1912

4740 N R A V E N S W O O D A V E . • C H I C A G O 40. I LL .
S A L E S A N D S E R V I C E I N ALL P R I N C I P A L C I T I E S

101

Grand

A v e ., D es M oin es,
P h on e: 2 4 4 - 2 1 3 1

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S a le s O ffic e s : C e d a r R a p id s + D a v e n p o rt
Factories: Des Moines, Kansas City,
Memphis, Fort W orth, Minneapolis.
So. Hackensack, N. J.

Northwestern Banker, November, 1963

102

«

Incentive Plan
The sales manager of a large firm
was always trying to get his salesmen
to think for themselves.
One day he received a telegram
from one of his men who who was enroute to Salt Lake City. It read:
“ Have lost my order pads. Shall I
proceed to destination or return to
the office?”
The sales manager wired back:
“Yes.”
Within an hour another message ar­
rived from the bewildered salesman:
“Do you mean yes, I should proceed
to destination or yes, I should return
to the office?”
Whereupon the sales manager sent
this laconic telegram: “No.”
Inflation
Patron: I’ll take the $2 dinner.
Waitress: On white or rye, sir?
The Late Show
Jimmy was very fond of telling his
dreams at the breakfast table. One
morning his father thinking to apply
an intelligence test, said, “But Jimmy,
I don’t believe you know what a
dream is.”
“Yes, I do,” replied Jimmy, “it’s tele­
vision while you’re asleep.”
Diversification
The Texan rushed up to the ticket
counter at an airpoint terminal. “Give
me a ticket on the next plane.”
“Where to, Sir?”
“Anywhere, Sir, anywhere. I’ve got
business all over.”
New Viewpoint
This one is credited to the oft-quoted
Yogi Berra, new manager of the Yan­
kees and probably the best bad ball
hitter in the majors. One afternoon,
he reached for three outside pitches in
succession and struck out.
He returned to the dugout still shak­
ing his head in disbelief. His team­
mates waited patiently for the cus­
tomary outburst of self-blame. In­
stead, Berra, addressing nobody in
particular, muttered: “ How does a
pitcher like that stay in the league?”
Northwestern
 Banker, November, 1963
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Just a Bit Too Much
The manager of the supermarket
was so touched by the hard-luck story
of the man with all the children and
no job that he filled a cart with gro­
ceries and said:
“These are on me; I hope they help.”
Misty-eyed, the man started out, but
turned around.
“Need something else?” the man­
ager asked.
“Yes, how about my Green Stamps?”
Hazard of Work
The boss called the new stenog­
rapher into his office. “ Miss Gann,”
he said, “you are the best looking girl
we have ever had working in this
office.”
A pleased look came into the girl’s
eyes.
“You dress well,” continued the
boss, “you have a nice voice, you
make a good impression on the pub­
lic, and your deportment is fine.”
“ Oh, thank you,” she said. “Your
compliments are very pleasing.”
“Well, enjoy them to the fullest,”
returned the boss, “because now we’re
going to discuss your spelling, your
punctuation, and your typing!”
Fourth Estate
A reporter from a big-city newspa­
per stopped to visit with a friend who
operated a little country weekly. He
asked his friend, “How can you keep
up your circulation in a town where
everyone knows what everyone else
is doing?”
The editor grinned and said, “They
know what everyone’s doing, all right,
but they read the paper to see who’s
been caught at it!”

C O N V E N T IO N S
November 10-14, FPRA, 48th Annual
Convention, Biltmore Hotel, Los
Angeles.
November 17-19, ABA 12th National
Ag Credit Conference, Muehlebach Hotel, Kansas City, Mo.
December 1-6, Investment Bankers As­
sociation of America, 52nd An­
n u a l C o n v e n t i o n , Hollywood
Beach-Diplomat Hotels, Fla.

Potato Royal
Once upon a time, an Idaho potato
married a Long Island potato. They
were very happy and pretty soon they
had a little sweet potato.
(Botanists say this is impossible,
but that’s the way the joke goes.)
After the sweet potato grew up to I
maturity, and her eyes began to wan­
der, she came to her mother, the Long
Island potato, and said: “ Mama, I
have a crush on David Brinkley. He’s
so refined, so gentlemanly. I love him
dearly, Mama, and I want to marry
<
him.”
“Heaven!” the mother potato said.
“You can’t marry David Brinkley.
He’s a commentator.”
Wrong Number
A man and his wife were sitting to­ h
gether in the living room one evening.
The phone rang and the man an­
swered. He said, on the phone, “How
on earth should I know? Why don’t
you call the Coastal Patrol?” Then he
hung up and returned to his news­
paper.
The wife asked, “Who was that,
dear?”
The husband said, “I haven’t the
faintest idea. Some silly jerk wanted
to know if the coast was clear.”
Full Service
An efficiency expert received pay­
ment for services rendered and dis-^
covered it was one cent short. A
stickler for perfection, he insisted that
the difference be paid. In a few days
came a check in the mail for the sin­
gle penny which he endorsed and took
to the bank for payment.
The teller scrutinized the check and*,
the man and then, in the most confi­
dential whisper he could muster with­
out guffawing, he asked, “How would
you like it? Heads or tails?”
. . . T o Reason W h y
An egotist is a man who thinks that*
if he hadn’t been born, people would
have wanted to know why.

W ho Picked W ho?
Never trust your wife’s judgment
. . . look who she married!

*'40% of our people under the
Bank Health Plan are 65 or older
reports L. M. Voorhees, Vice President
Harvard State Bank, Harvard, Nebraska

“ ...and Central States’ program covers our senior depositors with
the same benefits as it does all others. You can readily see how
important a plan like this is to us,” Mr. Voorhees continued.
Our association with Central States has been a pleasant one and
profitable since the day we signed up with them back in 1951,”
said the Nebraska banker.
“ Profitable because the revenue we receive from Bank Health
greatly offsets our bank expenses,” he explained.
Whether your motive is profit or rendering a vital service to your
customers, you will appreciate working with a company that
understands the banking business. For more than 31 years,
Central States has worked exclusively with financial institutions.
More than 900 banks find our services pleasant and profitable.
May we explain the details to you?

T. LESLIE KIZER, President
CENTRAL STATES INSURANCE BUILDING
HOWARD AT 18TH STREET • OMAHA
UNDERWRITING EXCLUSIVELY THROUGH FINANCIAL INSTITUTIONS


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Federal Reserve Bank of St. Louis

NIGHT TR A N S IT... always a little faster
There’s an old clichè about b a n k in g hours. Short? Well,
maybe . . . but not at the lowa-Des Moines. Through the
night we pick up and deliver mail. <
Why do we do it? “ Always a little faster” is our motto
and Our method. We get all items ready and off for collection the same day or night received.
In Other words, whatever W ill make for more speed in
serving you—that’s for us! To find out more about our

complete correspondent banking services, why not write
or c a ll....
_________________________________________________
■
_______
d e p a r t m e n t

J e r r y N e ls o n — Vice

President

o f

b a n k s

B o b B u e n n e k e — Assistant
B e n E i l d e r s — Assistant

a n d

b a n k e r s

G e o r g e E . H a r n a g e l— Assistant

Cashier

Vice President

Vice President
J o h n H u n t —Assistant

Cashier

_______________________________________________________________ _

We're here to help you get what you want

Io w a D e s M o i n e s National Bank
Sixth and Walnut, Des Moines 4 • CHerry 3-1191


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Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation