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Federal Reserve Bank of St. Louis






Fast currency service . . . from MNB
A recent continuing survey, conducted by North­
western Banker, lists “ Currency Service” as being
of importance to country banks in their selection of
a correspondent bank. MNB correspondents enjoy
the fast, safe, currency services available at the
“ security dock” in M NB’s new Motor Bank. Or, if
it is inconvenient to pick up currency or silver per­
sonally, we serve them with same-day shipment by
parcel post. Start enjoying the complete services
at MNB soon, and see why over half of all Iowa
banks are MNB correspondents.

So many ways we can help you



Federal Reserve Bank of St. Louis


to share in farm loans that help you grow
The seasonal need for farm
credit often taxes a bank’s re­
sources to the lim it...a n d be­
yond. And th a t’s the time you ’ll
w a n t to T ru s t N o rth e rn fo r
prompt, expert assistance.
We assist you in offering a
helping hand to the farmers
in your com m unity who need
help to meet today’s high pro­
duction costs. It’s ju st good
Federal Reserve Bank of St. Louis

business.. .fo rth e farm er who
ultim ately gets a higher yield
through betterseed,fertilizers,
and equipm ent. ..and for you.
Northern Trust is ready to


Chicago 6 0 6 9 0 ■Financial 6 -5 5 0 0 - Member F.D.I.C.

be a partner in loans or to
purchase your bank's paper
or notes. In either case, you’ll
g ro w rig h t alo n g w ith th e
farmers you serve.
From corn crop to the Com­
mon Market, Trust Northern
for the finest in service to cor­
respondent banks. For informa­
tion, just ask to see a Northern
Trust Officer. He’ll come to you.

When it comes from Recordak

there's more in it for you!
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o f banks large and small. A n d this R ecord a k experien ce
pays off:
in the film: K od ak Research L aboratories have recently
p erfected a new fine-grain em u lsion film that yields
sharper images . . . has greater resistance to abrasion. You
are n ow getting this new im p roved R ecord a k Fine-G rain
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In film processing: R e co rd a k ’s staff o f career specialists
process you r films using the m ost advanced techniques
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N. Y. 10003.



No. 928. Northwestern Banker is published m onthly by the Northw estern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription 50c
per copy, $4 per year. Second class postage paid at Des Moines, Iowa. Address all m ail (subscriptions, change of address, Form 3579, m anuscripts,
m ail items) to above address.
Federal Reserve Bank of St. Louis


Name New Director
Birny Mason, Jr., president and
chief executive officer of Union Car­
bide Corporation, has been elected a
director of Manu­
fa c tu r e r s H an­
over Trust Com­
pany, it was an­
Mr. Mason is a
director of Con­
so lid a te d C o a l
Company, The Fi­
delity and Casual­
ty C om pa n y o f
N ew Y ork, and
B. M A S O N , JR.
Metropolitan Life
Insurance Company. He also is a
trustee of Cornell University and the
National Safety Council and a member
of the National Industrial Conference
Board and the New York Chamber of

Oldest Financial Journal West of the Mississippi

for your N O V E M B E R , 1964, reading
70th Year


M- S T A T E M E N T


No. 928

Across the Desk from the Publisher


(Act of October 23, 1 96 2 ; Section 4369, Title 39,
United States Code)
1. Date of filing— September 18, 1964.
2. Title of publication — N O R T H W E S T E R N
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 business
offices of the publishers— 306 15th Street, Des Moines,
Iowa 50309.
6. Names and addresses of publisher, editor and
managing editor:
Publisher— -Malcolm K. Preeland, 306 15th Street,
Des Moines, Iowa 503 09.
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
Northwestern Banker Company, 306 15 th
Street, Des Moines, Iowa 5 0 3 0 9 ; Malcolm K. Freeland,
President, 306 15th Street, Des 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; Frances Prouty De Puy Estate, Des Moines,
9. Paragraphs 7 and 8 include, in cases where the
stockholder or security holder appears upon the books 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 be 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 Code) .
Average No.
copies each
issue during Single issue
nearest to
12 months
filing date
A. Total No. copies printed
(Net press run)
(Sept. ’ 64)
B Paid circulation
1. To term subscribers
by mail carrier delivery
or by other means
2. Sales through agents,
news dealers, or otherwise NONE
O. Free distribution (includ­
ing samples) by mail,
carrier delivery, or by
other means
D. Total No. of copies dis­
tributed. ( Sum of lines
B l, B2 and O)
I certify that the statements made by me above
are correct and complete.


Country Banker Upset by Country Banker


Frontispage— “ One Minute to Play”


Poultry Loans . . . A Profitable Opportunity to Serve
Agriculture— Tom Smith


Pointers fo r Lobby and Window Exhibits—
A. B. Goodwin and George H. Dempesy


Patman Charges Refuted— Part II


Reno Odlin Heads A.B.A.


Minnesota News
Twin City
South Dakota
North Dakota






Group Meeting Report—
Larry Nothwehr
Omaha News
Lincoln News
Panel Discusses Branch
Iowa Bankers Convention
Des Moines News


Index of Advertisers
In the Directors’ Room
Conventions Calendar

306 15th Street, Des Moines, Iowa 50309, Telephone (Area Code 515) 244-8163
Chairm an

Clifford De Puy

E ditor


Malcolm K. Freeland

Ben J. Haller, Jr.

A ssocia te E ditor

Larry W. Nothwehr

A d vertisin g A ssistan t

Doris Johnson
Field R ep resen ta tive

A! Herbei

Circulation D epartm ent

Lena Sutphin
Field R ep resen ta tive

Joe M. Smith

A u ditor

Bertha Soderquist
Field R ep resen ta tive

Paul Masters

Frank P. Syms, Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


C hem ical e x e c u tiv e M*vomotion$
elevation to the rank of exec­
utive vice president of four senior
vice presidents heading important di­
visions of Chemical Bank New York
Trust Company was announced recent­
ly by Chairman Harold H. Helm. They
are: Alfred H. Hauser, who is in
charge of the bank’s investment port-

folio as well as its municipal and gov­
ernment bond departments; Arthur P.
Ringler, who is the senior supervisory
officer in charge of the bank’s opera­
tions division, including electronic
data processing activities; Walter M.
Ross, who directs the national divi­
sion which handles the bank’s business
over the nation outside of New York
City, and Keith M. Urmy, who heads
the hank’s metropolitan division com­
prising more than 125 offices in the
five boroughs of New York City and
the counties of Nassau and Westches­
Mr. Ross, a native of Marion County,
Iowa, is an alumnus of Knox College.
He entered the Army in 1941 as cap­
tain in the Office of Strategic Services,
was awarded the bronze star and ad­
vanced to lieutenant colonel before the
end of World War II. In 1946, Mr.
Ross became associated with the First
National Bank of Louisville where he
rose to vice president. In 1950 he
joined the national division of Chemi­
cal New York, advancing to senior
vice president in charge of the divi­
sion in 1961.

Four NABAC Workshops
w . M. R O S S

A series of four managerial-level

K. M . U R M Y

workshops for bankers is to be held
in Kansas City, Mo., between Novem­
ber 16-20 by NABAC, The Association
for Bank Audit, Control and Opera­
tion. All four workshops will be con­
ducted at the Bellerive Hotel.
Each of the workshops will be a
two and one-half day session covering
a specific topic with a discussion chair­
man p resid in g . Discussion topics,
dates, and chairmen include the fol­
Cost Accounting, November 16-18.
Chairman, J. Franklin Mellema, vice *
president and deputy comptroller, Na­
tional Bank of Detroit, Mich.
Managing the Audit Function, No­
vember 16-18. Chairman, E. Hampton
Morgan, auditor, Wachovia Bank and
Trust Company, Winston-Salem, N. C.
Managing the EDP Function, No­
vember 18-20. Chairman, Leonard Selden, vice president-electronic process- *
ing center, Michigan National Bank,
Lansing, Mich.
Profit Planning and Budgeting, No­
vember 18-20. Chairman, Fred G. DeLong, vice president and comptroller,
Mellon National Bank and Trust Com­
pany, Pittsburgh, Pa.
The 13th annual session of the
NABAC School for Bank Audit, Con­
trol and Operation will be conducted
August 1-14, 1965, at the University of
Wisconsin, Madison.

...w e ll-s u ite d to th e in vestm en t needs
o f banks and individuals
T ax-exem p t and taxable bon ds, notes, debentures, equipm ent
t r u s t c e r t i f i c a t e s — th e o b l i g a t i o n s o f w e ll e s t a b l i s h e d
m u n ic ip a litie s a n d c o r p o r a t io n s are o u r s t o c k in tra d e.

H A L S E Y , S T U A R T & CO. INC.

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

• 30 BROAD STREET, N E W YOR K 1 0 0 0 4



Stop on any one
o f our floors
for the Harris
Bank Service
If you’re looking for the floor at
the Harris that serves our Cor­
respondent Banks, take your pick.
Because you can hardly go wrong
F or e x a m p le : L ow er le v e l,
governments, money market in­
struments, portfolio advice. 2nd
floor, loans. 3rd floor, Correspond­
ent Bank Department, advertis­
ing, public relations. 4th floor,
municipal bonds, safekeeping. 9th
floor, data processing center, clear­
ings, transit, cost analysis.
Whether it’s one of these, over­
loans, portfolio review or whath av e -y o u , every service o f the
Harris Bank is available to you.
W h y not stop in and let one of
our men show you what we can do
to help you run your bank better.
Just walk in the front door and
ask for our Correspondent Bank

Trust and Savings

Organized as N. W. Harris 8 Co. 1882— Incorporated 1907
Member Federal Reserve System. . .
Federal Deposit Insurance Corporation

Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1964


Do your customers buy, sell, trade,
build, manufacture or distribute goods
anywhere outside the United States?

Let Bankers Trust Company be your Inter­
national Banking Department. For over half a
century, Bankers Trust, the ninth largest com­
mercial bank in the United States and the
thirteenth largest in the world, with assets in
excess of $4,200,000,000, has been engaged in
international banking.
We reach out daily to every part of the world
from our 16 Wall Street and 280 Park Avenue
Headquarters Offices to solve the new problems
and take advantage of the new opportunities
arising daily in the fast-changing world of in­
ternational business.
We’d be happy to do it for you. At Bankers
Trust you will meet an outstanding group of
financial men with the talent and experience to
give the kind of international banking service
your customers require. Here are some of the

World-Wide Banking Network
Our correspondent banking relationships with
leading banks around the world, our two branch
offices in London, and our representative offices
in Paris, Rome and Mexico City help us provide

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

Ed w ard G . G rim m , B a n k e rs T ru s t V ic e P re sid e n t, is a
reco g n ized autho rity on fo reig n and d o m estic d ocum en­
tary c re d its.

fast, accurate and thorough service all over the
Our investments in seven banks throughout
West Africa, in a banque d’affaires in Paris,
and in financial institutions in such places as
Malaysia, Colombia and the Philippines have
proven of special benefit. Our equities in these
institutions are shared by some of the most in­
fluential banks in Europe, and we have found


W h e re ve r your cu sto m e rs do b u sin e ss o v e rse a s, B a n k e rs T ru st co rresp o n d en ts and rep re se n tativ e o ffic e s can provide
fa s t, a c c u ra te and thorough se rv ic e .

these banks especially cooperative in helping to
solve a variety of business problems within
their respective countries.

Letters of Credit, Foreign Exchange,
Foreign Collections
You and your customers will have access to a
complete array of international banking serv­
ices including, among others, letters of credit,
foreign exchange and foreign collections.
The Bankers Trust Letter of Credit Depart­
ment is headed by Edward G. Grimm, Vice
President, a leading authority on this vital,
complex subject. His knowledge in this area is
highly regarded; indeed, he was one of the
bankers involved in the recent revision of the
basis of all letters of credit, the “ Uniform Cus­
toms and Practice for Documentary Credits.”
Our Foreign Exchange Traders are among the
most active in the country. They are continually
in touch with overseas exchange markets by
telephone, cable and telex, assuring our cus­
tomers of prompt service in the application of
market rates. They have helped many business­
men fix the dollar cost of their operations by
minimizing the risk of exchange fluctuations.
In the Foreign Collections field, our years of
experience and our relationships with thou­
sands of foreign banks have proven invaluable
assets. We receive excellent cooperation in our
daily transactions with foreign banks in
achieving the efficient collection of funds for
your customers. We can eliminate costly expen-

NEW YORK, N. Y. 10015

© Bankers Trust Company 1964
Federal Reserve Bank of St. Louis


Intern ational B ankin g D ep artm ent o ffic e rs exch an g e firs t­
h an d in fo rm a tio n a b o u t th e c o u n t r ie s in w h ic h th e y
s p e c ia liz e .

ditures through services which many exporters
find particularly helpful, and we are often in a
position to advise American exporters about
the reliability of foreign buyers.

Special Services
Among the many services we provide, we help
your customers find sources of foreign capital,
establish trade outlets and collect royalties. We
secure introductions to foreign businessmen
and officials, and assemble information on over­
seas economic and political conditions, services
that can often be helpful for companies con­
sidering appointment of foreign representa­
tives or establishment of foreign subsidiaries.
The service which we provide to your customers
is quick, accurate and tailored to each specific
need. If you have customers who do business
abroad, let us be your International Banking

Call 212-692-6525



Member Federal Deposit Insurance Corporation

Northwestern Banker, November, 1964

cer. During the past year, Mr. Howell
functioned as first vice president.
The new president has been New
Jersey’s co m m is s io n e r since 1955.
Prior to his appointment, he operated
his own insurance firm in Trenton,
and served in both his state legisla­
ture and the national congress.

W eils F a rffe N a m es E x ecu tives


New Chase E xecutives

WELLS FARGO EXECUTIVES (left to right) F. J. Heilman, vice chairman of the
board, Ransom M. Cook, chairman and chief executive officer, H. Stephen Chase, pres­
ident, and I. W. Heilman, retiring chairman of the board.

THE monthly board meeting of
A TWells
Fargo Bank in San Fran­
cisco, I. W. Heilman retired as chair­
man of the board of directors, having
reached the retirement age of 65. Ran­
som M. Cook, president, became chair­
man and continues as chief executive
H. Stephen Chase, executive vice
president, was named successor to Mr.
Cook as president, and F. J. Heilman,
executive vice president and head of
the bank’s international division, was
elected vice chairman of the board.

H ow ell H eads NASSB
Charles R. Howell, New Jersey Com­
missioner of Banking and Insurance,
has been elected president of the Na­
tional Association of Supervisors of
State Banks.
Mr. Howell’s election took place dur­
ing closed sessions at the Association’s
63rd annual convention, which was
held in San Juan, Puerto Rico, at the
Americana Hotel.
The New Jersey commissioner suc­
ceeds C. V. Pierce, South Carolina’s
Chief Examiner, as NASSB’s top offi­

The Chase Manhattan Bank has ap­
pointed Victor E. Rockhill an execu­
tive vice president and associate execu- *
tive officer of the bank’s international
David R o c k e fe lle r , president of
Chase, and George Champion, chair­
man, have recommended William S.
Miller to the board to succeed Mr.
Rockhill as president of Chase Inter­
national Investment Corporation. The
CIIC is the bank’s wholly owned foreign financing subsidiary. Mr. Miller
is executive vice president of CIIC.
John M. Lyons has been recommend­
ed as executive vice president of CIIC,
to succeed Mr. Miller.
In his new position, Mr. Rockhill
will carry the responsibility for the
general direction of the bank’s Latin
American and United States-Canada *
areas. He also will direct the planning
and development of new facilities of
Chase Manhattan outside the U. S.

Attractive positions available for men with adequate experience
and ability, such as:

Managing Executive
Commercial Loan Officer
Installment Loan Officer
Agricultural Representative
Insurance W riter

Junior Officer
Trust Officer
Assistant Cashier

If your present position does not provide the challenge or the
future you desire, and you think you can qualify for a better
position, write for free application blank.
W e make no charge to the applicant, but charge the employer
for our services. W rite us in confidence. All correspondence
and negotiations strictly confidential.

Henry H. Byers, President
Richard C. Newlin, Vice Pres.
1301 Register & Tribune Bldg.
Des Moines, Iowa 50309
Telephone 515— 282-7800
for FRASER Banker, November, 1964
Federal Reserve Bank of St. Louis



This is the Citizens State Bank of New Ulm,
New Ulm, Minnesota


This is
their “office”
New York
Like many banks o f all sizes, the Citizens State Bank o f

Mr. R. C. Eichten
Executive Vice-President
Citizens State Bank
o f New Ulm

and k n ow -h ow o f our staff are always ready to help the

New Ulm, New Ulm, M innesota, has a N ew Y o rk “ office”

Citizens State Bank o f New Ulm serve its customers. H ow

through its correspondent relationship with N ational City.

can your bank get these same benefits? Write or call our

N ot only in N ew Y ork but in 39 countries on 5 continents

Correspondent Bank Department (A rea C ode 212 559-

where National City branches are located, the experience

4832) and we will be pleased to visit you.

Uptown Headquarters: 399 Park Avenue
Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation
Downtown Headquarters: 55 Wall Street
Northwestern Banker, November, 1964

JACK MINER, Vice President & Divisional Manager of

the group of Consultants who concentrate their efforts in your


B A N K BU IL D IN G C O N S U L T A N T . . .

all the 39 specialized talents you need to build outstanding new quarters
Financial quarters grow ever more complex to design.

planning techniques. When you work with your Bank

T oday’s vigorous competition has created a need for

Building Consultant, he coordinates your project and

m ore efficient new quarters to control operating costs

relieves you o f all the technical problems involved.

for the expanded services and advanced equipment

He is especially qualified to work with you because

now so vital. And all this calls for more sophisticated

he devotes all o f his efforts on projects in your area.

M I D - C O N T I N E N T D I V I S I O N : 1 1 3 0 H A M P T O N A V E N U E , S T . L O U I S , M I S S O U R I 631 39
Federal Reserve Bank of St. Louis


Ml 7 - 3 8 0 0 , A r e a C o d e 3 1 4


know business and building conditions
in your area and can be invaluable in
assisting you right from the outset

H. N. Arnold

Vernon W. Barge

Tom Cahill

Jamie G. Cannon

J. T. Conlon

Harold Gilbert

C. J. Guimbarda

John T. Huffman

Norman Leppo

Leroy W. L ott

C ou n try
tty C ou n try

ttunkU pset

banker, who has been
a long-time subscriber to the
N orthwestern B ank er , recently had
occasion to call, as a complete stranger,
in a country bank in a state other
than his own and felt that his expe­
rience was worth recounting.
As is evidenced by his remarks, he
was upset by the treatment he re­
ceived but, following some reflection,
was convinced that the experience was
a helpful one in pointing out what
may have been a weakness in his own
Following is the incident as it was
related to us by this subscriber:
“This little human interest story
should have two titles: ‘The Public
Image Still Stands’ and ‘Getting a
Dose of My Own Medicine.’
“ I am a banker. At any rate, I am
listed in the directory. Recently, 1
was in another state on business. I
stopped in a fair-sized town to check
on some pasture land concerning what
the land might be worth and what it
should rent for. Naturally, I went to
the bank for my information.
“ It was some time before anyone
noticed me. Then I was met with a
cold, expressionless stare from a mid­
dle-aged women who asked, with some
lack of expression, ‘Can I do some­
thing for you?’ I stated my mission
and was informed that Mr. So-ancl-So
was busy but that he might be able
to help me in a few minutes.
“ I sat there for exactly three-quar­
ters of an hour. There was no paper
to read but there was a bench to sit

on. The door to Mr. So-and-So’s office
was open and someone was having a
glorious time visiting with him. I got
up and walked out.
“Across the street was the Savings
and Loan.
“A devilish thought went through
my mind . . . yes, I would try it!
“ I walked in and a robust fellow
came out of an office with a hearty
‘Good morning! What can I do for
you today?’ Again I stated my mis­
sion. He told me that he did not deal
much in pasture land, but that there
was a good real estate dealer there
who would surely be able to tell me
what I wanted to know.
“He reached for the telephone,
dialed a couple of numbers and, unable
to find his man, stepped out on the
street to see if he could find his car.
“The real estate dealer just hap­
pened to be passing by. My friend,
the Savings and Loan manager, let
out a yell and a shrill whistle, intro­
duced me as ‘the gentleman from Ne­
braska’ and went back to his nicelyfurnished, cozily-decorated building.
It reminds you of the classic expres­
sion, ‘who, then, was neighbor?’
“Yes, the public image still stands.
But that needn’t be all. I have, like­
wise, begun a business deal with an
old friend in the back room and fin­
ished up with a nice visit — while
someone was waiting out front to see
“My wife said it served me right.
I had to grin, for I had it coming to
me. I’m gonna do better from now

West Coast Director

Robert D. Morrison

Fred A. Hart

Bank Relations

Packed with ideas you can use in your
own planning; projects of all types and
sizes are shown. Free, no obligation. Just
write to:




1130 Hampton Ave-# St. Louis, Mo. 63139
Offices in: A T L A N T A • C H I C A G O • D A L L A S
Federal Reserve Bank of St. Louis

Election of John Kyle Gustafson as
a director of United California Bank,
Los Angeles, has been announced by
Frank L. King, chairman of the board.
Mr. Gustafson is president, chief ex­
ecutive officer, and director of Homestake Mining Company.

T o p

S te w

Daniel Dan, 16, recently elected pres­
ident of the Stagecoach J. A. Bank,
sells the first stock certificate in his
bank to H. Stephen Chase, Wells Fargo
Bank president. Dan, a senior at St.
Ignatius High School, heads one of the
fifty student-operated companies cur­
rently in business at the San Francisco
Junior Achievement headquarters. The
Stagecoach J. A. Bank, capitalized at
$100, will receive advice and technical
assistance from Wells Fargo.

GRAND CHAMPION steer at Tulsa
State Fair Junior Livestock Auction
was purchased by the First Natl. Bk.
& Tr. Co., Tulsa. Jack V. Sanders,
left, a.v.p. of the bank, bid $2,500
for it, and the bank bought the steer
from Fred Ferrell, Elgin, Okla., Fu­
ture Farmer of America. For the
past 19 years, the bank has bought
the top steer.
Northwestern Banker, November, 1964


B o f A O b serves fiOth Y ea r


A m e r i c a , the world’s

B largest non-government banking
institution, celebrated its 60th birth­
day last month with a quiet cake-cut­
ting ceremony and some thoughts
about the past, but most of the talk
was about the future. The bank was
founded on October 17, 1904.
Focal point of the birthday party at
the bank’s San Francisco head office

BANK BIRTHDAY—For six decades Bank
of America has been opening branches in
California, so when the bank celebrated
its 60th anniversary last month, President
Rudolph A. Peterson, left, Claire Hoffman,
daughter of founder A. P. Griannini, and
Chairman Jesse Tapp were faced with the
formidable task of blowing out a candle a
branch— 868 of them. The candles were
mounted on a giant California-shaped cake.
For 19 of its 60 years, the bank has been
the nation’s largest. Total assets: $14.8


was a giant cake with 868 candles,
each representing a California branch
of Bank of America. Hosts of the
party were R. A. Peterson, president;
Jesse W. Tapp, chairman of the board,
and Mrs. Claire Giannini Hoffman,
daughter of Bank Founder A. P. Gian­
Before cutting the first piece of
cake, Mr. Peterson noted the high­
lights of the bank’s growth from a oneroom, three-employee firm in 1904 to
an institution with branches through­
out California and the world.
He observed that the bank had its
own humble beginnings in an aban­
doned tavern in San Francisco’s North
Beach district, with three initial serv­
ices. Catering to the “little man” as
well as the large corporation, it has
grown into a world-wide organization
with more than 80 services, high­
lighted by such features as equipment
leasing, medical billing, payroll proc­
essing, travelers cheques, the widely
accepted BankAmericard, and Timeplan.

Plan Personnel Conference
An advance program was announced
for the National Personnel Conference
of The American Bankers Association
cn November 15-18 in Chicago. All ses-

sions will be in the Sheraton-Chicago
The program, according to C. Ed­
ward B errym an , chairman of the
A.B.A.’s Personnel Administration and *
Management Development Committee,
includes panel discussions, group meet­
ings and case studies, in addition to
formal addresses.
Registration, a review of exhibits, \
and a get-acquainted gathering are
scheduled for Sunday, with the meet­
ings getting under way on Monday
morning. The conference adjourns at ^
noon on Wednesday.

New Morgan Executive
Election of Leonard C. R. Langer as
a vice president of Morgan Guaranty
Trust Company in charge of staff plan­
ning and developm e n t w a s an- 4nounced by Hen­
ry C. Alexander,
chairman of the
Mr. L an ger, a
fo rm e r associate
professor at the
Harvard Graduate
S ch o o l of Busi- -f
t C.
„ R.
ness Administra­
tion, most recent­
ly has been treasurer of Star Market
Company, a food retailing chain with
headquarters in Cambridge, Mass.



special audit procedures give you
assured collateral protection
Douglas-Guardian’s unique system o f Field Warehousing is
the soundest possible method of protecting collateral that
cannot be kept in your own vault. For Douglas-Guardian
sets up an independent custodianship of inventory, wherever
it may be— at the manufacturer’s, distributor’s, wholesaler’s
or jobber’s own place of business.
For your fullest protection, we don’t take anybody’s word
for anything. We offer visual verification on a monthly
basis— or more frequently if activity or commodity indicates.
Your customers benefit from increased operating funds . . .
and your bank benefits from increased safe loan volume.
Years of quality service prove the unique reliability of
Write or call us for complete information—promptly.


Doug las-G u ard ian


P. 0. Box 52978, New Orleans 50, La.

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis





Phone Area Code 504 523-5353



How does
The First serve us
as a correspondent?
In the best way possible,
with men who work
exclusively with
correspondent bankers.

If you’re getting less than the best
in correspondent banking service,
contact the bank that gives you
full-time banker-to-banker service.
/////A (:A / rs/ yc> a m / / A e m tá w / iJ r/ iee/ S & S

The First National Bank
of Chicago
Chicago, Illinois •60690
Federal Reserve Bank of St. Louis




Northwestern Banker, November, 1964


IPìseontinue T ra velers C h eeks

the bank’s lending limit to $750,000 to
any one borrower.

FTER 55 years of issuing its own
travelers checks, First National
Bank, Chicago, has decided to give up

Harris Bank Promotions

the service because it no longer could
properly serve its customers in this
In a letter to the bank’s agents who
sell checks, Homer J. L iv in g sto n ,
chairman, said the First National had
come to the “unhappy” conclusion that
“to continue to assure world-wide rec­
ognition and acceptance of our trav­
elers checks would necessitate further
increases in our advertising and pro­
motional efforts which would involve
expenses considerably in excess of any
net return in the foreseeable future.”
Mr. Livington said the bank would
begin selling American Express Trav­
elers cheques to fill the needs of its
He said, “Because of their wide ac­
ceptance we have decided to sell Amer­
ican Express Travelers Cheques ex­
A spokesman for the bank estimated
that First National was the fourth

largest issuer of travelers checks in
the country—ranking behind Ameri­
can Express, First National City Bank,
New York, and Bank of America
NT&SA, San Francisco, in that order.
James A. Henderson, senior vice
president, American Express, in a let­
ter to the 3,500 outlets which have han­
dled First National’s checks, urged
that they switch to his firm’s service.
He added that for any customers of
the agencies who wish to swap their
First National checks for the Ameri­
can Express drafts there would be no
extra charge for this service until De­
cember 31.

Chicago Surplus Increase

Three new assistant vice presidents
and four new officers were announced
by Harris Trust and Savings Bank,
Chicago. All the official promotions
were in the bank’s
in v e s tm e n t d e ­
P r e s t o n T.
Luney and George
D. Smith II, for­
m e rly managers
in the d e p a r t ment’s buying di­
vision, and Rob­
ert M. Schaller,
f o r m e r l y sales
p. T. L U N E Y
manager, wer e


Directors of N a tion a l Boulevard
Bank of Chicago have voted to in­
crease the bank’s surplus from $5 mil­
lion to $5% million by transfer of
$500,000 from the undivided profits ac­
The transfer will increase total capi­
tal and surplus to $7,500,000 and raise

S om eone in your bank is a check
counselor. Every new custom er
needs checks. Every old customer
has occasion to reorder checks from
time to time. Someone must place
the orders for checkbooks. Some­
one must answer questions about
checks and show the custom er
what is available for his use. Some­
on e in your bank has, in this
position, a golden opportunity to
do a marvelous job o f customer
relations for your bank while build­
ing for himself or herself an im ­
portant place on your bank’s staff.

Fr ie n d ly , c u s to m e r -c o n s c io u s
employees make excellent check
counselors. They grasp quickly the
two prime essentials for excelling
at the job . . . knowing the styles o f
checks that are available and finding
out what the customer needs. A study
o f the D eLuxe catalog o f bank
checks, together with the samples
and sales aids we provide, makes
the first skill relatively easy to
acquire. T o fin d ou t exactly
what the customer needs is simply
a m atter o f asking the righ t

Check counseling is doubly im por­
tant in these days o f automated
check handling. Considerable sums
o f money are involved in the fur­
nishing o f encoded checkbooks. A
know ledgeable check counselor,
w hile satisfying the custom er’s
wants and needs, can actually sell
more checks than he gives away.
Equally important is the fact that a
customer who is using a checkbook
that is exactly right for his particu­
lar needs is a satisfied customer.

W e have long been intrigued with
the check counseling function. Our
representatives have watched and
studied counselors at work, and
we have a color slide film on the
subject that they will be pleased
to show to interested people in
your bank at your convenience.
T he jo b is im portant and the
rewards are substantial for a job
well done. May we help you in
developing an outstanding check
counselor for your bank?

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

G. D. S M I T H II

R. M . S C H A L L E R

promoted to assistant vice presidents.
New Harris Bank investment offi­
cers are John M. Dancey, James W.
Forsyth and Stanley K. Peirce, sales
managers, and Barry P. O’Brien, man­
ager, trading division. Mr. Forsyth
and Mr. O’Brien are in the depart­
ment’s New York office.

List NAB AC Conventions
The 1965 schedule of conventions to
be conducted by NABAC, The Associa­
tion for Bank Audit, Control and Op­
eration, has been announced by Asso­
ciation President Henry J. Rohlf, vice
president, The Morgan Guaranty
Trust Company of New York.
Five conventions are conducted an­
nually by NABAC, one national and
four that are regional in nature. The C
regional meetings are traditionally
held during the spring, and the na­
tional is annually conducted in the
Dates and locations of the 1965
NABAC conventions follow:
Western Regional — Phoenix, Ariz.,
April 5-7, Westward Ho Hotel.
Southern Regional — Dallas, Tex.,
April 26-28, Statler Hilton Hotel.
Northern Regional — Indianapolis,
Ind., May 10-12, Claypool Hotel.
Eastern Regional — Pittsburgh, Pa.,
May 24-26, Pittsburgh Hilton Hotel.
National Convention—St. Louis, Mo.,
October 25-27, Chase-Park Plaza Hotel.



Dale R. Ainsworth, Executive Vice-President; John J. Kramer, Vice-President;
Roy A. Thompson, Vice-President; George JV. Sherman, Assistant Vice-President.

N orth western Statesmen !
The big, wide-open spaces o f the Great Northwest get prime attention from these Men from the City.
Correspondent banker Roy Thompson covers Colorado. Bill Sherman serves Iowa, Nebraska, W yo­
ming, Montana, North Dakota and South Dakota, while Western U. S. Director John Kramer backs
up the full-time, full-service City National team. Meanwhile, Executive Vice President Dale Ains­
worth heads City National’ s entire group of fourteen able, experienced Correspondent bank officers
— all especially trained to provide the best possible know-how and on-the-spot counsel. Call them
today, area code 816, BA 1-6800.

Kansas City, Missouri

F .D .I .C . e one Kansas City bank that has eve ry tiíing
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


A C R O S S the D E S K
L/tomthe Puhtlihe'i
(D o W c d isw A L ^ Q . fo ls w im c :
Chairman, Commercial Bank,

Daytona Beach, Florida.

Speaking before the annual meeting of the Na­
tional Association of Supervisors of State Banks,
you attacked the Comptroller’s liberalization in
the granting of national bank charters to counter
non-branching laws.
We agree with your comments when you state
that the answer is not in the wholesale granting
of charters in no-brancli states. You explained
your reasoning in this manner:
“ You and I know that many applications come
from people who really have no interest in our
industry. They want to buy the respectability
which comes with a banking directorate, or they
want to use the bank to their own personal ad­
vantage, or they want to make a quick capital
gain through the sale of bank stock.
“And if an appreciable number of this type ap­
plicant is successful in obtaining bank charters,
we are in for trouble.”

(D&Wl ñolwucL


Vice President and Treasurer,

Hartford Insurance Group,
Hartford, Connecticut.

Appearing before the 90th annual convention
of the American Bankers Association, you com­
mented on the important things you look for in
choosing a banking connection for your company.
Many of the items that you listed are synony­
mous with the findings in the exclusive survey
just completed by the N o r t h w e s t e r n B a n k e r
among a cross section of commercial accounts.
Here are your observations :
“ Important things that we look for in a bank :
Reasonable size ; adequate security ; good service
organization; a favorable geographic location;
facilities of foreign exchange. However, I think
that if I were nailed down to the most important
ingredients in a bank, I would have to say that
it would be its people. Whether you think about
it this way or not, you are selling your services
just as we are selling ours and, as is the case
with all sales organizations, it is the personnel
who will eventually decide whether or not you
are successful.
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

“As 1 see it, this could be :
1. A teller at your service window.
2. A programmer in your data processing de­
3. A member of your trust department.
4. The representative who may visit the cor­
porate treasurers to “sell the bank.”
5. Yes, even the president.
“ This, of course, is a large order for any or­
ganization to be so perfect; but just as long as
you continue to represent yourselves with the
highest type of friendly, considerate and polite
people, just as long as they continue to serve our
needs so well, just as long as they continue to
investigate and create new services that are in
our interests, just as long as they and their in­
genuity expand your services to meet our ever­
growing needs both in this country and abroad,
you will have our continued respect and loyalty
and, most important, the partnership which has
made both of our industries strong and indispensible to the welfare of our country.”

(bsucUc (¿hordeA, CL. CLcpmlait,:
Executive Vice President, Chase Manhattan Bank,
New York, New York.

Most bankers admire you for being able to
wade right into the nuts and bolts of a problem,
and your address before the National Association
of Supervisors of State Banks was no exception.
You stated that banking’s “present climate of
competition” has, in your judgment, “ been unfor­
tunately impaired by a series of subtle shifts in
the delicate balance of the dual banking system.”
You added that the “ tinkering and tilting of
the scales has placed state banks at a disadvan­
tage in relation to national banks.” You further
explained that “ the task of state bankers is not
made easier by the fact that most of the stipula­
tions now in force are absolutely antiquated.”
By stipulations, you were referring to FDIC and
Federal Reserve rules regarding capital adequacy,
risk asset ratios, loan limits, asset appraisal, man­
agement appraisal, liquidity and so on. By con­
trast, we see national banks enjoying a single set
of rules and standards, and these are being made
increasingly flexible.


He covers 26,000 miles a year for Chemical New York and you.

He can bring New York’s money market to your Main Street
This is the man who proves a bank
can be one of the world’s largest with­
out being stuffy about it. He’s from
Chemical New York.
He brings you a brief case full of
benefits—all the resources, the expe­
rience o f his 5-billion-dollar bank.
His bank is strategically headquar­
tered in New York’s financial center. It
gives him the contacts and capabilities
to make any financial operation run

more smoothly. His bank has ties with
banks in all 50 states and in more than
100 countries overseas.
His bank has him specialize in your
area. So he can put his finger on the best
way to get things done. That’ s why he’s
known as “ the New York banker with
the hometown touch.” Your local bank
knows him and can put you in touch.
Chemical Bank New York Trust Com­
pany, New York 15.

C h e m ic a l
N ew Y ork
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis




For the Friendship of
our Fellow Bankers,


we are deeply...
... Thankful


Last month’s convention in Des Moines gave us a
chance to re-new old friendships and establish new

As we approach the Thanksgiving season,

may we wish you and your family a most bountiful
and contented holiday.

Fifth and Locust Street . . Des Moines
Member Federal Deposit Insurance Corporation

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis





We know California business from to p ...


to bottom.
From tim ber to toys, from m ining to m ovies —
B ank o f A m erica has a w orking k now ledge of
every m ajor business and industry in California.
This o n -th e -s p o t experience can be invaluable
to you. W hether you have questions about credit,
co lle ctio n s , b u sin ess p ro s p e c ts or new p la n t

sites, B ank of A m erica —w ith m ore than 800
branches —can find more than 800 ways to get
you the answers. For the m ost com plete corre­
spondent service in California, ju st contact our
N a tio n a l D iv is io n , 300 M o n tg o m e r y S tre e t
San Francisco; 650 So. Spring St., Los Angeles.





Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


P o u ltry Loan s . . .
A Profitable Opportunity
to Serve Agriculture
B y T O M SM IT H , President
First National Bank
Perry, Iowa
AUTHOR TOM SMITH, second .from left, is shown with
the Marion Thornburg family of Woodward, Iowa. The Thorn­
burg’s have one of the more than 80 midwest layer units
which have been installed in Minnesota, Iowa, North Dakota
and South Dakota.

HERE’S a new industry in your community or
there could be. An industry which is unlike any
of the others. But it’s just as important to your
community’s financial well-being as the local candy fac­
tory, tire factory, or cattle feeding lot. It doesn’t employ
as many people as some businesses, but it puts a lot of
money into circulation and it helps to create and main­
tain jobs. What is this new economic boon to commu­
nities? It’s an egg production factory. Not 400 layers
running loose in a farmer’s yard, but rather 3,000 or more
layers confined in a modern egg factory.
Almost every segment of your community benefits be­
cause of this enterprise. The local insuranceman is asked
to insure the $15,000 to $20,000 operation. The feed dealer
receivers orders for $10,000 worth of feed every 14-15
months. The local hatcheryman sells the layers for the
operation. The local lumberman, plumber, and electrician
are all involved in building the factory. Your bank has
the opportunity to loan the money required to build and
equip the factory. And the factory increases the value
of the farmer’s farm, and he pays more taxes.
But the farmer benefits the most. The factory enables
the farmer to diversify. It means he doesn’t have to make
all the family living from any one project on the farm.
In a year when one phase of farming commands low
prices, there is another project on the farm to make up for
the lower income.
It also gives the farmer a good market for available
family labor—labor that often would sell pretty cheap in
the nearest community. The farm wife can take care of
3,000 layers in a modern cage unit in about three hours
each day. It’s light, easy work. The woman and her
children work inside out of the weather while walking
down cement aisles picking up the eggs and placing them
on an egg cart. Gathering completed, the woman pushes
the cart to a modern egg cooler built into the unit where
she puts the eggs in cases for pickup by an egg buyer.
After completing the gathering chores, the woman sits
down at a desk in her functional workroom. Here she
records the hens’ production for the day and other im­
portant information. In return for her labor, the woman
is able to add substantially to the farm’s net income. This
can amount to over $4,000 a year from a 3,000-bird flock.

Federal Reserve Bank of St. Louis

What are the risks involved for the banker? After all,
he’s the fundamental man in the whole operation because,
in most cases, without his financial support a farmer
can’t build a unit. There are risks, but they’re not unlike
the risks in any other business. In fact, under a sound
program sponsored by a firm headquartered in Des
Moines, Iowa, a banker is assured of minimum invest­
ment risks. Hy-Line Poultry Farms and its distributors
began offering a package egg factory for sale about two
years ago. Since that time, over 80 of these poultry oper­
ations have been constructed in Iowa, Minnesota, and
North and South Dakota. The money for these units
came from many different sources, including the First
National Bank of Perry, Iowa.
Under the Hy-Line program, the producer turns all of
his egg receipts above his cash expenses over to the
lending agency until the note on the factory is completely
satisfied. Therefore, all of the farmers, who have built
these units, were making a living on their farms before
they undertook these projects.
They’re good managers. They’re big businessmen. And
they’re farsighted. They’re looking ahead five, 10 and
even 15 years to the time when they will need additional
funds for their children’s college educations and when
they will want to retire.
Know the Man

But let’s say we all agree that there should be more
egg factories in our communities. What do we look for
in a man who wants to borrow money to build one of
these units? First, one must know the man. Is he de­
pendable and hardworking? Is he a good manager as
well as a hard worker? Is he making a living on his
farm? Is there labor which is not being utilized on his
farm? Does the firm selling the unit provide a service
program for the operation which will give the man tech­
nical assistance? And, of course, does he have the neces­
sary collateral to secure the loan?
If a banker asks himself these questions about a loan
prospect and can answer them all affirmatively, the risk

(Turn to page 44, please)
Northwestern Banker, November, 1964


Christmas Is Coming . . .

Pointers tor Lobby and
■ With the approaching holiday season, officers charged
with the responsibility for appropriate displays in their
respective banks are probably looking for helpful sugges­
tions by means of which theirs may be made more mean­
ingful and more effective with a minimum of difficulty.
For that reason, the N orthwestern B anker this month
offers suggestions provided by two men experienced in
bank display projects.
Their suggestions are practical and detailed and, al­
though their advice differs in some respects, it should be
remembered that the display areas with which they work
are considerably different as well.

Assistant Vice President
National Bank of Commerce
Trust & Savings
Lincoln, Nebraska

on displays of outside material is governed
OURby policy
the following generalities:
If it is a manufactured or processed item, it must
be produced in Nebraska.
2. If it is of a civic nature and is not controversial.
3. If it is of a charitable nature.
In addition to these broad concepts, there are many
finer points to be considered, such as the following:
1. Is the material to be displayed “in good taste?”
We would not display any item that would be obnox­
ious, such as a coffin.
2. Does it have a unique quality? Is it of interest and
not “run of the mill?”
3. Can it be attractively displayed?
4. Will it stand exposure? (Not warp, peel or crack.)
5. Any chance of odor?
6. Will it create any space problem if displayed in the
lobby? Some items are just too big.
7. Can “anyone” possibly object?
8 . Is there competition on the item? If so, give equal
exposure time. Not necessarily jointly, but be sure
competition is aware of the opportunity.
9. Use good judgment and due caution.
A Problem Solved

Lincoln, for example, has three candy manufacturers.
Two distribute nationally and the third distributes region­
ally. We were approached by one of the larger firms and
were asked to display its products. We called the other
two and told them of the request and offered them display
space at a different time.
One readily agreed and left the choice of time to us.
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

The other was a “little” difficult as it desired to be first.
It was a ticklish situation inasmuch as all three were
good customers of the bank.
It was finally resolved when it was discovered that one
manufacturer had a very attractive line of boxes for a
particular season of the year and agreed to hold back its
display until that time. This saved the situation and re­
sulted in three of the most attractive displays in the win­
dows at three different times of the year.
We do not allow prices to be displayed on any item.
We furnish a sign for displays of manufactured or proc­
essed products that says, “ Items on display in this window
were made in Lincoln or Nebraska.” No other sign is
The party displaying furnishes all decorating material,
prepares all signs and puts in his own display at his own
expense. We do counsel with them before they prepare
their signs and displays and, if we feel it necessary, we
ask them to submit copy for their signs before they spend
their money having them made.
We phoned local manufacturers and processors offering
them display space and wrote letters to larger outstate
manufacturers. The word soon got around and we now
have requests for space extending into late 1965.
The length of time displays are left in the window or
lobby varies according to the display. We leave displays
of events taking place on the university campus in only
one week. We left a display relative to the Lincoln In­
dustrial Foundation in for one month.
Lists Some “Don’ts”
A few words of caution. Don’t allow use of the bank’s
name in securing any “props” for a display such as man­
nequins or furniture. Don’t use a new car in lobby dis­
plays. Rather, have the displayer use his own car. Car
dealers are extremely touchy about this and especially so
if they are bank customers selling installment paper to
the bank.
One controversial issue that demonstrates the pitfalls
you can find embarrassing was the issue of adding fluo­
ride to the drinking water of the city. The issue seemed
to be endorsed by medical and dental organizations and
we gave an organization a window to display the “bene­
fits” of fluoridization, thinking there was no opposition be­
cause, until that time, there appeared to be none. Need­
less to say, there was and we took the display out of the
window and the issue was soundly defeated in a vote of
the people.
We recommend having signatures of parties responsible
for displays on a statement agreeing to the following:
It is agreed by the organization that the bank reserves
the right to:
a. Remove display from the window or lobby if neces­
sity of promoting a bank service or promotion arises.
b. Be the sole judge of what may be displayed.
c. Cancel the display at any time.


indoir Exhibits

Director of Public Relations
American National Bank
and Trust Company
of Chicago

YOU know, with our 12 large show windows sur­
A Srounding
the building, we have been forced to do a
great deal of thorough and agonized perusal of the me­
One of the first things we learned was to avoid identifi­
cation, where possible, with the products or services of a
particular customer. In an industrial complex the size
of Chicago, and with more than 25,000 commercial ac­
count customers, we found that it was impossible to cap­
italize on the materials offered for display by one account
without accepting those of all the others.
For example, we recently had a window series on the
Chicago Bears football team. All the jerseys, helmets
and other articles used in the exhibit came directly from
the Bears’ own equipment room. Yet, we were severely
criticized by a sports equipment customer for not using
his products.
Actually, it turned out that our customer provided the
Bears only with shoes. The brand identification of the
competing shoes in our display was on the inner sole and,
to see the trademark, it was necessary to stand on one’s
toes unless one happened to be well over six feet five
Avoid Fund-Raisers

Another principle we follow is the avoidance of fund­
raising displays, with the single exception of our Com­
munity Chest-Red Cross Crusade of Mercy series created
each fall. The reason for this is similar to that cited
There is such a proliferation of worthy charities in the
city that our windows would have nothing else in them
all year if we acceded to each request. And how do you
tell the chairman of the Cystic Fibrosis Drive that his
cause is not as important as the Heart Fund without run­
ning the risk of alienating a significant minority of the
On the subject of selling the services of the bank
through displays, we have come to the conclusion that
such an endeavor is most unproductive. Very few, if any,
persons walk in to open an account or borrow because of
Federal Reserve Bank of St. Louis

ONE OF 12 WINDOW DISPLAYS, at American National Bank
and Trust Company of Chicago, is viewed by, left to right,
Allen P. Stults, bank president, George Halas, Jr., Chicago
Bears president, and Howard J. Johnson, bank vice president.
George H. Dempesy, the bank’s director of public relations,
reports that displays of civic interest, such as the one pictured,
and displays of collections which have historical significance
have drawn the most interest at the bank.

displays inviting them to do so. Of course, I exclude pre­
mium promotions from this generalization. Obviously,
if an attractive display of a worthwhile premium is cre­
ated, it will usually result in some degree of new busi­
Display What and Why?

What, then, do we display and why?
We use our windows to more effectively identify the
bank and to create a visual personality for the institution
that will, hopefully, influence individuals favorably to­
ward us. To do this, we look for display themes that will
have general interest and that lend themselves to dimen­
sional portrayal.
Collections of virtually any type fit these requirements,
especially those with historical significance. We have dis­
played a clock collection, Civil War mementoes and other
such articles, always with success.
Worthwhile civic organizations are also good subjects
and we have had display series on our symphony, opera,
art museum, police department, schools and, as earlier
mentioned, the Bears.
Two things I insist upon, however, are: (1) We will de­
sign and construct the displays ourselves with the help
of our display firm and (2) We must have dimensional
materials. Photographs and drawings are fine, but to
really get attention, displays should have three dimen­
sional objects in them.
Also, because we are trying to put our best foot for­
ward, so to speak, the design of the displays should reflect
good taste as well as a modicum of sophistication. Only
a professional designer can provide these basics.

(Turn to page 48, please j
Northwestern Banker, November, 1964


Analysis Shows



Patman9sCharges Ar

P a rt If
(0 o#i v ia s i on )
■ In the first p art of his an alysis, published in last month's issue
of the N O RTH W ESTERN BANKER, Dr. Davids review ed several
of Rep. Patm an's charges. One of these w as th at the cost of
money in the U. S. is too high. Dr. Davids suggested th at any
interested person could readily determ ine form av a ila b le fig­
ures th at much higher interest costs are charged in many other
Rep. Patman made d irect charges that the Fed and a small
group "co n trol" the money market.
Dr. Davids questions his
definition of "co n trol" and enumerated the many other forces
affecting the money market. Likew ise, he defended the Fed­
eral Open M arket Com m ittee's action s as being in the public
Mr. Patman took many "pot shots" a t the Fed, W all Street
and bankers in general.
Dr. Davids d issected and answ ered
each of these charges. He continues his an alysis in this con­
cluding installm ent.

Rep. Patman infers that the FOMC created three de­
pressions between 1953 and 1961. On a relatively pedantic
plane there is serious question as to whether the three
periods he mentions qualify for the strong term of “de­
pression” or whether the milder term of recession is more
appropriate. It is inherent to both the free capitalistic
type society and increasingly so in socialist type societies
that they have a “business cycle” or “trade cycle” rather
than a constant increasing or level production. These
two questions are germane to the issue:
(1) Is the United States’ real production on a per cap­
ita basis higher during the “ depression” or recession pe­
riods than other types of societies such as fabian socialist
or communist? My answer is yes!
The second question is (2) Can the FOMC be praised
—or blamed—for steel strikes, for adverse balance of
payments? For unbalanced federal budgets, for political
situations such as the Suez Canal, for the weather? The
answer is that the FOMC has no impact whatsoever in
many areas of political and fiscal policy. So don’t blame
them completely—nor should they be praised for things
that they had little to do with.
One other point should be developed. We are all famil­
iar with the concept of excess. Over a long period of
years certain indications of undesirable economic ex­
cesses are observed—such as security, speculation, infla­
tion, etc. A method of responding to such excesses (as
we observe them) is to try to moderate the situation be­
fore it gets out of hand. Example: the stock market
“booms” to a point where there is more than “normal”
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

(an admittedly difficult concept to briefly describe) bor­
rowing to purchase stocks. The Fed is now obligated to jf
step in and reduce this potentially dangerous condition
(observe 1929 when the Fed lacked this power). Yet, the
very nature of the Fed accomplishing this desirable mod­
eration of reducing excessive speculation in the stock
market can cause a back lash. The strong criticism
comes from the relatively few who feel hurt. The many
who are helped, and society as a whole, rarely go out of
their way to praise the Fed.
The bankers reading this article will appreciate that A
they cannot discuss in the public forum all the aspects
of every loan or investment that they make. The Fed
cannot reveal its actions at the time it takes open market
operations, basically for the same reasons. It does, how­
ever, go beyond the actions of most other foreign central
bankers and other commercial bankers and reveal the
reason for its action in its annual report. This announce­
ment appears too late to be of value to speculators but
soon enough to be judged by informed peers and Con­
gressional committees.
“Abnormal” Connotation

Weekly reports of the Fed are published by our leading
newspapers. These reports do permit the perceptive to
visualize in the aggregate what the Fed has done during
the previous week. Thus, no radical departure from past
performance can go unnoticed by those willing to devote
the time and effort to investigate.
“ The enormous—even abnormal—prosperity that bank­
ers have enjoyed the past few years,” is another indica­
tion of Mr. Patman’s overstatement of facts. It is true
that bankers by and large have experienced good profits
and prosperous times in the past few years. So has the
nation as a whole. There are a good number of industries
which have had higher profits (by whatever measure
used—return or investment—capital appreciation, etc.),
Of course, there are others that have had lower. The
connotation of “ abnormal” is not pleasant. Surely the
Savings and Loan Industry so favored by Rep. Patman
has shown much higher “profits” than banks, yet expe­
rience no criticism from him.
In discussing 12 per cent or more yields on consumer
installment loans Rep. Patman seems to forget that he
is quoting a gross yield which not very many bankers are
obtaining. In addition the net yield is substantially lower
and after the tax yield is even lower still. The return
commercial bankers obtain on consumer loans, be they
stated as gross or net, are not out of line with rates








This analysis o f Mr. Patman’s
recent speech before Congress has
been prepared by

Professor o f Bank Management
University of Missouri
Prominent educator reviews Rep. Patman’s speech.

\ charged by financial intermediaries such as finance com­
panies. About the only financial institutions charging
lower rates than banks are the co-operatives and these
have lower overhead by virtue of volunteer help and do­
nated services and they don’t pay taxes.
That bankers have been increasingly switching to mu­
nicipal bonds which are tax exempt is true. It is natural
and legal for any individual or company to minimize the
tax burden. Bankers do not make the tax laws; it is
^ politicians such as Rep. Patman that do.
“ Interest payments on deposits are too generous” may
be a statement made by one or more bankers. It is prob­
able that on any economic phenomena it is possible to
get quotes on either side of most questions.
My own personal opinion is that the legal limitation of
the Regulation Q ceiling on interest rates paid on time
deposits had some justification at the time the Fed im.4 posed it but that the regulation, after the emergency
period was over should have been modified to a stand-by
basis. The more rapid growth of S&Ls would not have
occurred by shifting of deposits from commercial banks
to S&Ls if banks had been able to compete with the S&L
without the restriction of Regulation Q.
“NO” to Power

This writer may or may not agree with Time and Rep.
-I Patman as to the “greater power.” He would add this
qualification — y e s!— greater power over the member
banks of the Federal Reserve System—but NO! to greater
power over our economy, since the growth of other finan­
cial intermediaries—and cash flow of major companies
C has reduced the over-all importance of banks in our cur­
rent economy.
The question of Congress’ inability to be an effective
operating monetary authority has been previously com*• mented upon.
The question of “excessive” rates of interest is dis­
cussed previously. It would be most interesting to learn
what minimum and maximum rates of interest Rep. Pat
Federal Reserve Bank of St. Louis

man would favor. It is very questionable that funds
could be provided to meet the needs of society at those
rates. It is one thing to advocate “Pie in the Sky.” It
is an altogether different thing to be confident that the
complex forces of our economy could sustain itself with
those same rates of interest.
Rep. Patman equates the FOMC, the Fed, ABA, big
New York banks, and the Eisenhower regime as “jacking
up interest rates to an excessive degree.”
He states he is an implacable foe of the above. He fails
to state that many of the FOMC are considered to be
members of the Democrat Party and were appointed by
Democrat administrators with the consent of the Senate
(controlled by Rep. Patman’s party).
The executives of the Fed have by and large tried to
avoid any actions which could be construed on partisan
Questionable Rationalization

Rep. Patman again seems to exercise some questionable
rationalization. The national debt is mostly the result of
fiscal policy—of budget receipts and expenditures voted
by Congress on the basis of budget requests submitted by
the various government departments and bureaus. The
monetary policies of the Fed have in this sense little to
do with the United States budget. Within the limits of
their legal duties the Fed cooperates with the Treasury
in seeing that fiscal or monetary policy are not at cross
The word “pernicious” has an unfavorable connotation.
Rep. Patman is right in an immediate sense that an in­
crease in rate of interest on the national debt will cost
the taxpayers more. There are some other ways to look
at this situation. If, as a result of our lowered rates of
interest, foreign holders of dollar claims should in large
numbers convert their claims from dollars into gold, such
a run on the dollar would unlock a pandora’s box which
could jeopardize our domestic economy much more than
increased interest on our debt. Using Rep. Patman’s own
Northwestern Banker, November, 1964


Patman’s Charges Refuted . . .
example, a 1A4 per cent increase in interest rate on the
national debt would work out to roughly $4 per capita
—or in the neighborhood of our aid to Indonesia. The $4
may be compared to the over $2,000 per capita income, or
one-fifth of one per cent.
Rep. Patman would be more realistic in relating home
ownership costs to the Federal Home Loan Bank Board,
a board which has two-thirds control derived from the
Saving and Loan industry, rather than imputing complete
responsibility to the Fed. If one wishes to be pedantic
it is possible to point out that since interest rates are
tax deductible that their true after tax burden is rather
lower than they appear.
Rep. Patman’s use of the word “arrogantly” in refer­
ring to W. McC. Martin seems out of place. He is a gen­
tleman doing a most difficult job. Few who know him,
other than Rep. Patman, would classify his attitude as
“ arrogant.”
By the same token it is doubtful that Chairman Martin
has publicly expressed the thought that Rep. Patman is
“wicked.” I would think that Mr. Martin’s patience may
have become tried at times during his testimony before
Rep. Patman.
Words such as “money hucksters” have emotional over­
tones which make it difficult for dispassionate analysis.
Use of such terms in Rep. Patman’s arguments tends to
encourage emotional responses, whereas rebuttals should
be objective.
“Reform” Categorized

His use of the term “reform” falls in the same category.
All well-intentioned citizens favor true “reform” when it
is needed. However, Rep. Patman’s use of the term does
not seem to be supported by empirical evidence. The Fed
and the FOMC surely do not consider themselves perfect.
They recognize that as situations develop there is a need
to re-examine rules and policies under which they oper­
ate. They advocate change when it will improve their
Most loyal Americans would acknowledge that it is be­
yond their sphere of competence to take a strong position
on the number and type of planes, ships, guns and other
armaments with which our nation should be defended.
Too, questions of rate-making for interstate transporta­
tion are referred to experts in the field and such boards,
commissions and authorities are found in many areas of
government. Congress does not vote on the power or wave
length or other technical details of operation of a radio
or TV station.
In a similar sense, it is not within the province of Con­
gress to inject itself into the day-to-day operational details
of the central bank. With all due regard to our highly
educated citizens, there is a vast lack of understanding in
many technical areas.
Ask the man on the street what the significance is of a
particular change in the free-reserve position, the veloc­
ity of money, or “float.” It becomes apparent that it is
not so much a question of the Fed being “insulated” from
the people as it is of the “people” not having the technical
training to intelligently approve or disapprove of the
Fed’s actions.
It looks as if Rep. Patman’s position on the “right for
the President of the U. S. to . . . appoint the head of the
Federal Reserve” may be adopted. There are indications
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

that the Federal Reserve Act may be modified to permit
the President, after a “cooling-off” period of perhaps six
months after his election, to appoint the Fed chairman.
It is important, however, that the appointment not be
a purely political one.
The impression Rep. Patman leaves with the uninitiated
is that members of FOMC and the presidents of the Fed
banks belong to some unidentified “club” of bankers.
Dr. Charles N. Shepardson was dean of the School of
Agriculture at Texas A&M immediately prior to his ap­
pointment to the FR Board. Dr. Watrous Irons was a
highly regarded professor of finance before joining the
Dallas Fed where he is now president. William McC.
Martin headed the New York Stock Exchange and had a
distinguished military career prior to his appointment to
the Fed Board.
Dr. Malcolm H. Bryan, president of the Atlanta Fed,
formerly taught finance at the University of Georgia.
George Clay and Harry Shuford, presidents of the Kansas
City and St. Louis Feds, respectively, had legal back­
grounds before joining their banks. Dr. Karl Bopp taught
finance, labor problems and finance at the University of
Missouri before going to the Philadelphia Fed where he
is now president.
The educational level of the management of the Fed is
one of the highest of any board, commission or agency.
By and large, today, they comprise a highly competent
and noncontroversial group.
I would attribute less importance than Rep. Patman
does to the influence of monetary policy on employment.
The Fed cannot simply by injecting massive amounts of
money into our economy, create jobs for the unskilled or
put anthracite coal miners to work if people convert to
natural gas from coal. Structural unemployment is more
properly dealt with by nonmonetary programs such as
education, relocation or both.
By the same token, if the Fed injected massive amounts
of money into the economy to obtain “full employment,”
the inflationary effect could well cause greater damage
than a condition of less than “full employment.” In addi­
tion, some very subtle distinctions must be made in any
discussion of “full employment” or “rates of production.”
Most people use the term “full employment” without
bothering to define it. But those who have studied the
subject point out that the term is contradictory. Labor
economists contend that even at the best levels of em­
ployment there is some “frictional” unemployment—peo­
ple moving, jobs temporarily not filled because of model
change-overs, highly skilled workers who are offered jobs
at a lower skill or wage levels who wait for their spe­
“ Looking for W ork”

Too, there is the middle-aged wife whose husband
works but will enter the labor market and drop out at a
whim. There is also a large group of people who are
“looking” for work—alcoholics, dope addicts, chronic
trouble makers, ex-criminals, the illiterates. Most em­
ployers do not care to hire such unfortunates, even to the
extent of not filling a job.
Then there are seasonal factors which can affect con­
struction, agriculture and transportation. How about
moonlighters and how accurate are figures which are ob­
tained by sample and involve vocal responses to questions


. . he should publish his associates' expenditures. ”
that have deep social and psychological significance? How
about a student who has just graduated but is scheduled
for a draft call in two or three months?
“ Full-employment” conditions might by Rep. Patman’s
definition, be obtained for a time by high deficit spending
by the government and the related monetization of the
debt. There are other dangers, however, that probably
would result from these actions. How healthy would
such an economy be? How long can such an economy
sustain itself? What happens to exports when inflated
prices are higher than those of other nations—the reverse
happens to imports!
Employment can be encouraged by a number of differ­
ent means and monetary policy is only one part of the
solution. The danger of over-reliance on monetary policy
to solve our economic problems can, and probably would,
cause more problems than it would solve.
It is interesting to look at the Fed’s recent record and
the Administration’s attitude toward it. Dr. Walter Heller,
chairman of the President’s Council of Economic Advis­
ers, in a speech to the Democrat platform committee said
he was not dissatisfied with the Fed’s policies. This
would seem to indicate that he does not believe the exec­
utive is “going one way and the Fed another . . .” as the
distinguished Harvard economist, Seymour Harris, con­
Money vs. Credit

Mr. Patman states that money and credit are the same.
Most economists would point out that there are impor­
tant differences between the two. In addition, there are
major differences between consumer credit, mercantile
credit, bank credit, installment credit, etc.
The Banking Committee chairman also disregards our
dual-banking system and infers that all commercial banks
are members of the Fed. Of the over 600 Missouri banks
less than 10 per cent are Fed members. Of the 14,000
banks in the country less than half are member banks
(but they account for about 85 per cent of the total out­
standing loans). He is accurate in his description of frac­
tional-reserve expansion.
However, he says that the Fed could “reduce or even
retire all of our publicly held national debt by providing
banks with reserves,” but does not spell out the tech­
niques for accomplishing this. If he is advocating con­
version of the national debt into currency he is advocat­
ing a dangerous and unrealistic solution to a serious prob­
lem. When China tried this printing-press route to finan­
cing its debt its monetary system collapsed and the Reds
took over.
Rep. Patman oversimplifies when he says “ no risk ex­
ists” with government paper. Banks, companies and indi­
viduals who purchased 2 % per cent government bonds
during the 1940’s saw them drop over 15 per cent in price
because market alternatives were more attractive.
Rep. Patman has had in his possession a study this
writer prepared several years ago on the difficulties of
independent and small businessmen in obtaining finan­
cing. Both of us are concerned with the problem but
Rep. Patman believes a low rate of interest will solve the
small businessman’s problems and I think it will com­
pound the problem. (This illustrates the difference in
approaches between a person who has had actual business

experience and one who has had a long, successful politi­
cal career.)
The government may establish a privileged rate of in­
terest, similar to FHA or GI rates, for lending to small
business (a difficult term to define). The fact is that
lenders are unwilling to lend at an artificially low rate
unless the loans are insured by the government.
A lender is willing to extend a loan and assume a usual
business risk for a borrower who meets normal credit
standards. Both the lender is not willing to lend at a
“customary” bank rate to a borrower who presents an
exceptional degree of risk. Thus, most bad risks are
passed on to the government.
A Serious Problem

The problem of financing the new small businessman is
a real and serious one. But it should not be a major con­
cern of the Fed. Congress has established a Small Busi­
ness Administration to concern itself with the unique
difficulties of the small business entrepreneur.
Rep. Patman says that taxpayers are “paying over $1
billion a year” on $34 billion in government bonds held by
the Fed, then accuses the central bank of spending “ as
much of this $1 billion as it wants to for any purpose.”
Here again, he overstates the facts and takes a few cases
completely out of context. He mentions an item of $25
for a preacher for an invocation and payments for courses
in ethics, history, politics and Shakespeare.
For one not familiar with the ways such expenditures
are used, $25 for a preacher or $125 for a comedian may
seem wasteful. The Fed has many obligations to the
public and the government and to its 20,000 employees.
One of their obligations is keeping labor turnover low
and to do this it must meet competition.
Many commercial banks pay the AIB expenses of their
employees. A good number of banks will pay for eve­
ning or after-hours education leading to higher degrees.
The typical college program requires a proportion of
“ liberal” education—ethics, history, politics and English
literature—as well as applied studies. The Fed is en­
couraging its staff members (as other banks do) to im­
prove their competence.
He singles out one Fed official’s expenditures of $269.10
for two weeks’ duty in India, “traveling like a prince.”
The man who can spend less than $12 a day in foreign
travel has my praise. My travel here and abroad runs
substantially higher than the figure Rep. Patman quotes
as “princely.” He really should praise the Fed official for
spending so little. If Rep. Patman wants to see how a
real spender on the government payroll can operate he
should publish his associates’ expenditures — those of
Adam Clayton Powell in Paris, for example.
We all should rightly be concerned with extravagance
and waste. Rep. Patman mentions specific expenditures
such as theater and golf partners, “still on the taxpayers’
money.” The picture he draws is of some 20,000 em­
ployees and officers wasting money on courses in Shakes­
peare, going to the theater and playing golf.
I have visited a good number of the FR banks in the
course of my work and the typical officers and employees
I have observed seem to be doing conscientious jobs. As
an educator, I commend the Fed for reimbursing em­
ployees who strive to improve themselves.
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


Patman’s Charges Refuted . . .
. . up and down like a yo-yo. ?? +.
We can also look at the normal business amenities.
When important customers or correspondents visit com­
mercial banks there are frequent invitations to meals or
visits to sporting events or the theater. By a similar
token, the Fed finds it appropriate to have foreign central
bankers and important executives of member banks as
Many business organizations find it good for employee
morale to have a Christmas party or other special events.
As a former bank employee I can remember attending
bank Christmas parties. We had wonderful dinners, the
chief executive would make pertinent comments on the
progress of the bank, the evening was always concluded
with some entertainment. The bill for the party amounted
to several dollars per employee.
For a bank with several thousand employees (the New
York Fed has 5,000) it is not extravagant to spend what
at first seems like a large amount—some $4,000.
Banks have for many years had such activities as em­
ployees’ Christmas parties and social functions for corre­
spondents. Such activities may be considered frivolous
by the uninitiated or lacking in real values.
To decision makers, such expenditures are difficult to
weigh objectively, as are most public relations and adver­
tising expenditures, or fringe benefits.
But if a Christmas party improves employee morale, or
a period on the golf course helps a central banker com­
municate better with a member banker or a foreign cen­
tral banker, the only real question is whether such expen­
ditures are out of line with the magnitude of the Fed’s
Surprisingly Naive

Rep. Patman’s idea of canceling the government bonds
held by the Fed or having “the interest turned over to the
Treasury” is surprisingly naive for a man of his expe­
rience. One of the major tools of monetary policy is
open-market operations — buying or selling government
bonds to ease or restrict the money market.
The first part of his proposal is like tying both arms
of a fighter behind his back. The second part—having
“the interest turned over to the Treasury”—is basically
what happens. About 90 per cent of what the Fed's net
income is, is turned over to the Treasury. The remainder
is used to provide a base for growth of the FR system
along with the economy.
Turning all interest over to the Treasury would throw
the FR budget into the political arena. The Fed would
be subservient to the Treasury and there would be the
conflicts of interest.
Rep. Patman’s ridicule of the exchange of FR notes for
interest-bearing government obligations is an appeal to
the superficial. Our monetary system is based primarily
on bank credit and on a fractional-reserve system through
which the monetary authority exercises a positive influ­
ence. It is not based on a 100 per cent metallic currency
or “hard money.” He proposes replacing a proven, effi­
cient, successful system with an untried, dubious system
fraught with grave economic change.
Rep. Patman says there is a possibility that Fed exec­
utives, in carrying on business with various central bankNorthwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

ing officials, may be in violation of American constitu­
tional law.
This is difficult to discuss, not knowing what he is re- f
ferring to. The Fed cannot legally bind itself or the gov­
ernment in violation of the law. Other governments and
central bankers are, no doubt, aware of this.
As a professor of banking, I would like to know what y
agreements have been made between the Fed and central
banks of other nations. But I can recognize that, from
a practical viewpoint, such details cannot be spelled out
to the public without serious consequences resulting from
speculators taking advantage of such commitments for
their own personal profit and against the public interest.
Account Gimmick

The “tax-and-loan account gimmick” statement by Pat- 4
man overlooks a most essential point. One must con­
sider the tremendous impact U. S. fiscal policy has on our
monetary system. Two facts will reveal this:
1. In 1963 the federal fiscal operations showed $109,739,000,000 cash receipts from the public and $113,751,000,000 payments to the public.
2. Of the over $300 billion gross debt of the U. S. gov­
ernment, over $80 billion matures within one year. On *
some individual days several billion dollars worth of
Treasury bills and other government securities may ma­
ture or need refunding.
Tax receipts and payments, unfortunately, are not so
dovetailed that from day to day the Treasury can pay
out about what it receives. There are large seasonal and
daily variations between receipts and payments.
The monetary authorities—the Fed and the Treasury— k
must coordinate their activities or the shock to our mone­
tary system would be severe. One day there would be
deficits of billions of dollars of reserves (as funds moved
from commercial banks to the Treasury); at other times
excess reserves would be so pronounced that the scram- -y
ble to put reserves to work would make interest rates go
up and down like a yo-yo. Our international as well as
our national monetary stability would be hurt.
The best system worked out to date to alleviate the
imbalance is the tax-and-loan account Plan. It moder­
ates the lack of close relationship of U. S. tax receipts
and payments. Thus, the T&L account eases the fiscal
and monetary problems of the Treasury and the Fed. In
this sense it is as much or maybe more, of an advantage
to the government than it is to banks.
The next question raised by Rep. Patman is this: Is
the average of $5.3 billion held by banks in the T&L» ac­
count an unearned windfall?
In the first place, a bank cannot count on an “average”
in the account since it fluctuates and large secondary re­
serves must be provided to compensate for the fluctua­
tions. A bank provides many services for the government, such as handling savings bonds, cashing checks,
providing interest-payment information to the IRS, etc.
A bank’s taxes are equivalent to almost half of its income
so it does not wind up with the amount of income estiPATMAN REFUTED . . .

(Turn to page 36, please)






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Northwestern Banker, November, 1964


A. K. D A V I S

E. P. N E i I L A N

S. H A Z E L T I N E

R. H. H A R R I S , JR .

G. M. W A S E M

A t AMSA . Saxon U rg es F ed . USSSt
To (¿ait
ENO ODLIN, chairman of the
board of Puget Sound National
Bank, Tacoma, Wash., was ad­
vanced to the presidency of the Amer­
ican Bankers Association in Miami
Beach, Fla., last month. The 90th an­
nual convention was attended by
more than 8,500 bankers and wives.
Mr. Odlin succeeds William F. Kelly,
president, First Pennsylvania Bank­
ing and Trust Company, Philadelphia.
Elected vice president and in line
to be named president at the 1965 con­
vention next fall in Chicago is Archie
K. Davis, chairman of the Wachovia
Bank and Trust Company, WinstonSalem, N. C.
Officers elected by the four ABA
divisions and the state association
section are listed below.
The principal center of discussion
and speculation during the convention
was the talk delivered by James J.
Saxon, Comptroller of the Currency,
on the opening day. Mr. Saxon has
been a highly controversial figure in
the supervisory field ever since his
appointment by the late President
Kennedy at the start of the latter’s
administration. A strong proponent of
the national banking system, and
highly criticized from all sides for his
seeming complete disregard for indi­
vidual state banking laws, Mr. Saxon
chose this time to take out after two
of his favorite targets of recent
months—the Federal Reserve Board
and the FDIC—and in so doing came
to the “defense” of the state banking
Mr. Saxon proposed that all super­
vision of state banks by the Fed and
FDIC be eliminated. He said the
FDIC uses its insurance issuing au­
thority as a charter approving device.
He pointed out that national banks,
when approved for a charter by his
department, automatically qualify for
FDIC coverage. State banks, how­
ever, he said, must not only receive


Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


E xam ining S ta te
charter approval from state super­
visors but then must wait for ap­
proval by the FDIC before insurance
is issued and the charter activated.
(The latter practice is common in
practically all states—the requirement
that FDIC coverage be granted before
the charter will be officially ap­
“What we need in banking is not
greater centralization of authority, not
more vigorous conformity to imposed
rules of conduct, but enlarged free­
dom to respond to the challenge of
the future,” Mr. Saxon stated. He
said the Fed’s job is to regulate mone­
tary policy and that of the FDIC to
insure deposits and they should both
leave the job of bank supervision up
to the responsible national and state
Reaction to Mr. Saxon’s usually
carefully-prepared speech was not
long in coming. FDIC Chairman Jo­
seph W. Barr, speaking at the same
convention, called a press conference
and said “This is a fight on an indi­
vidual basis . . . (this proposal) would
seem to fly in the face of all the his­
tory we have learned since 1934.” He
hinted that a board to control the
Comptroller’s office might be preferred
to the present one-man rule.
On the state supervisory side,
Charles Howell, president of the
NASSB, said the facts are that “half
the states are ready to do the job.”
Mr. Saxon was roundly applauded
by the jammed room at the national
bank division where he presented his
speech. Later, he canceled his press
conference upon learning that earlier
press conferences by Mr. Barr and
Mr. Howell were critical of his posi­
tion. President Kelly also stated later
the ABA does not look with favor
upon Mr. Saxon’s suggested line of
One state su pervisor in the m idw est
told the N orthwestern B anker after

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


the speech that it would double the
expense of his department, since the
FDIC now does one examination a
year of state banks. He said it would
require twice the number of state ex­
aminers (probably from “unemployed”
FDIC examiners) and that the ex­
pense of the second exam would prob­
ably have to be borne by FDIC since
the banks pay for such an examina­
tion as part of their FDIC fees.
Douglas Dillon, United States Sec­
retary of the Treasury, was ill and
could not attend the convention. His
prepared address was read by the de­
partment’s general counsel, G D’Andelot Belin.
Division Officers

Edwin P. Neilan, chairman and pres­
ident, Bank of Delaware, Wilming­
ton; Vice President—G. Russell Clark,
chairman, Commercial Bank of North
America, New York.
National Bank Division: President—
Sherman Hazeltine, chairman, PTrst
National Bank of Arizona, Phoenix;
Vice President—Paul Hinkle, presi­
dent, C ha r l e st o n National Bank,
Charleston, W. Va.
Trust Division: President—Reese H.
Harris, Jr., executive vice president,
Manufacturers Hanover Trust Com­
pany, New York; Vice President—Paul
I. Wren, president, Old Colony Trust
Company, Boston.
Savings Division: President—George
M. Wasem, vice president, Commercial
National Bank, Peoria, 111.; Vice Presi­
dent—D. James Prichard, vice presi­
dent, Society National Bank, Cleve­ F
State Association Section: President
-—O. E. Anderson, executive manager,
Ohio Bankers Association; Vice Presi­
dent — Belden L. Daniels, executive
manager-secretary, the Pennsylvania
Bankers Association.
State Bank Division:


problem in Hawaii
( s a f e k e e p i n g s e c u r i t i e s — a n d sa v in g tim e )

solution in New York
( th ro u g h C h a s e M a n h a tta n )

A banker in Hawaii, seeking more efficient use of his staff, realized that con­
siderable time was being spent in the care of the bank’s securities— detaching and
collecting coupons, receiving and crediting dividends, collecting called and matur­
ing obligations, processing of exchange privileges, and dozens of other details.
Like many of his colleagues in other states, he decided to turn over these timeconsuming matters to Chase Manhattan’s Correspondent Safekeeping Department.
Now his staff is freed for more productive duties . . . and he knows his bank’s
securities are in safe— and alert— hands.
Wherever y o u are, whatever y o u r correspondent banking need, call on Chase
Manhattan, New York. Remember—
M o s t U . S. banks that h ave n am ed a N e w

Y o rk correspon d en t r e ly on

the p eop le at C hase M a n h a tta n

Daniel A. Cahalane, Assistant
Vice President, will be glad
to discuss the safekeeping of
vour bank's securities, too.
Call him at 212-LL2-4894.
Federal Reserve Bank of St. Louis






1 Chase Manhattan Plaza, New York, N, Y. 10015 Member Federal Deposit Insurance Corporation
Northwestern Banker, November, 1964


i hr ist mas CInb M em bers Total
1 illion



r o m


million seven hundred
fifty thousand C h ristm as Club













T !

for the banker
who is thinking
T V B A N K C O R P O R A T IO N o f
In d ia n a p o lis , In d ia n a , has p r e ­
pared a book let to aid the progres­
sive financial executive in select­
in g and purchasing T V drive-up
banking equipment.
F or your free copy o f the b o o k ­
let entitled " H O W T O B U Y RE­
M O T E T E L E V IS IO N D R IV E UP B A N K IN G ” send the attached

members will receive checks totaling
$1,774,172,000 when banks and savings
institutions pay out the 1964 Christ­
mas Club. This announcement was
made by Edward F. Dorset, president
of Christmas Club a Corporation, who
said: “This substantial increase in
C h ristm as savings forecasts good
Christmas business throughout the
country.” Mr. Dorset emphasized that
some 9,900 banks and savings insti­
tutions offer Christmas Club as a pub­
lic service. He cited a recent independ­
ent survey which found that 45 per
cent of the members felt their 1964
check represented money that would
never have been saved without the
systematic plan of Christmas Club.
For over a decade Christmas Club a
Corporation surveys have shown club
disbursements exceeding $1 billion
each year. Both memberships and
dollars saved have continued steadily
upward. This year tops the 1963 rec­
ord of $1,659,430,000.
Surveys by Christmas Club a Cor­
poration show that the total will be
used in the following ways:
Purchases___38.11% $ 676,136,949
Savings and
Investment for
Future Use .. .31.29%
T a x e s ................. 12.51%
Year-end Bills .. 6.19%
Miscellaneous ..11.90%

Plan Savings Conference
Plans for the program of the 62nd
National Savings Conference of the
Savings Division of The American
Bankers Association, which will be
held at the Hotel Roosevelt in New

York, April 26-28, 1965, are already be­
ing made.
The program will include presenta­
tions by outstanding speakers, as well
as panels, clinic sessions and round- r
table discussions. Robert Moses, pres­
ident of the New York World’s Fair,
will give greetings to conference par­
ticipants at the opening session. A
special feature will be a “Day at the
World’s Fair,” including a luncheon on
Wednesday, April 28, at which time
George Moore, president of the First
National City Bank, will welcome the 4|
delegates and their wives to the fair.

National Boulevard
The promotion of two officers by the
board of directors of National Boule­
vard Bank of Chicago was announced
by Irving Seaman, Jr., president.
Lewis E. Freyer was elected assistant
vice president and Donald E. Gervais,
assistant cashier.



Mr. Freyer has been with the bank
for eight years, first working in the y l
real estate department and more re­
cently in the commercial loan depart­
Mr. Gervais, serving in the real estate department, joined the bank in
1963 after spending eight years in the
real estate and loaning field.




Dept. 80
Bankers Trust Building
Indianapolis, Indiana


□ Yes, please send your free booklet!











Street________ __________________

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

RA 6-5432

Dl 4-3686

Since 1903, Specialists in maintaining bank earnings
through commercial paper, collateral loans,
and other short-term institutional investments.



A re you and your com m unity
overlooking this opportunity?

The opportunity is egg production.
That’ s right. Egg production. But not the kind
from flocks o f 50 to 250 hens Mom kept to pick up
"p in ’ ’ money.
W e’ re talking about packaged eggdaying units
that use only family labor— and light labor too.
They can boost a farm fam ily’ s incom e without
additional investment in land or hired labor.
These are compact, highly-efficient, automatic or
semi-automatic units o f 3,000 to 10,000 layers. Not
large, integrated contract operations. These units
require financing. And they yield a good return on
invested capital.

If that rule-of-thumb is reasonably accurate, we’ re
talking about an opportunity to generate $48,000 to
$160,000 in new business with just one packaged
unit. Doesn’t this sound like a good program to help
boost business in a farm community?
We breed and sell Hy-Line chicks and started
pullets all over the world. We believe a thriving
Midwestern egg industry will help stabilize the U.S.
poultry industry.
Apparently some lending institutions and com ­
munities think the same way. Because there are
now several hundred comm ercial units operating
successfully through Hy-Line distributors in the

The farm family buys building and equipment—
and Hy-Line started pullets to go into cages. Local
Hy-Line distributors help obtain financing, find mar­
kets, even give expert help in poultry management
and money management.

W e’ d like you to look over the careful records o f
units now in operation. Then decide if this plan
would help provide new incom e opportunities for
some o f your farm families and your com m unity.
And bring sound credit business to you, too.

Agricultural econom ists estimate that 1,000 layers
generate $16,000 o f business a year in any com ­
m unity— for feed, eggs, chickens, utilities, build­

If y o u ’ d like to see actual records o f operating
units, write or call us. W e’ ll be glad to send a repre­

ings, other products and services.

sentative to show them to you.

Hy-Line is a registered trademark of Pioneer Hi-Bred Corn Company.

Des Moines, Iowa

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


P a tm a n H aputtal . . .
(Continued from page 30)
mated by Rep. Patman and which he calls a “windfall.”
The FDIC’s 1963 annual report indicates that banks
earned 3.4 per cent, not 4 per cent, on government secu­
Rep. Patman would like the government “to take pos­
session immediately of the tax-and-loan-money.” Stu­
dents of monetary history remember that this is what
was done after the excesses of Jacksonian “wildcat” bank­
ing led to the establishment of the Independent Treasury
The ITS preserved the government from the losses it
had experienced from the politically favored “pet” banks
of President Jackson (of whom Rep. Patman thinks so
highly). But the government, in establishing the ITS,
caused widespread monetary havoc because receipts and
expenditures were not synchronized.
Today, with the federal government more important in
our economy than it was in President Jackson’s time, a
system such as that advocated by Rep. Patman seems to
raise a question as to his sincerity or his willingness to
learn from past monetary history.
Rep. Patman, however, does raise a very important
question. Does the government receive a fair return
from banks for the benefits and rights it provides—utili­
zation of government deposits and “creation” of money
through the fractional-reserve system?
Partisans like Rep. Patman tend to say “ No,” and bank­
ers tend to say “Yes.” And both responses tend to be
emotional rather than objective because they are based
on less than adequate knowledge of such data as cost
allocations—both fixed and variable—for all banks having

T&L accounts. Such cost figures, in fact, just don’t exist.
Rep. Patman raises many related issues with that ques­
tion. Payment of interest on demand deposits has not
been legal in the U. S. for three decades, though foreign
banks pay it and U. S. banks did up to the 1930’s.
American bankers shudder at the thought. Most raise
the unfavorable experiences of 1929 as arguments against
such payment. Yet many banks issue billions of dollars
in negotiable certificates of deposit, enter into link-financing arrangements and pay out on withdrawals of time
deposits like they were demand deposits. A clear-cut
distinction between time and demand deposits does not
exist. Besides, corporate treasurers more and more are
reducing demand-account balances and using excess funds
directly in the money market.
While high government officials have disavowed Rep.
Patman’s demand for reimbursement by banks for de­
mand deposits in the T&L accounts, it would be short­
sighted for bankers to dismiss the long-range appeal of
the proposal.
Bankers might find it informative to review the trend
in state legislation on state deposits in commercial banks.
Rep. Patman’s emotional argument on the T&L accounts
does not deserve an emotional reply. To be convincing,
bankers should be forearmed with functional cost-analy­
sis figures to support the industry’s position if and when
it becomes necessary.
My impression is that banks tend to give away many
services, charge inadequately for many others and trust
that income from loans and investments will cover all
fixed and variable expenses.
Putting it bluntly, there are thousands of banks that do
not know where to allocate costs. They have poor, in­
adequate or nonexistent cost-analysis programs and thus

Need Experienced Bank Personnel?








Contact us tor the following—
Chief Executives
Commercial Loan Men
Agricultural Representatives
Assistant Cashiers

Junior Officers
Installment Loan Men
Trust Officers
Insurance Writers

W e usually have applications on file from well qualified and
experienced men who have been carefully investigated. W e
instruct selected applicants to submit applications direct to you.
You pay us a nominal service fee only if you employ one of our
applicants— nothing otherwise. Write for Requisition Blank.





Henry H. Byers, President
Richard C. Newlin, Vice Pres.
1301 Register & Tribune Bldg.
Des Moines, Iowa 50309
Telephone 515-282-7800
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


^FU LLr
"B A N K "

Come aboard...
The Foundation of 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
support at the community level. Pro­
mote 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 Founda­
tion’s own program, can drive home the
many advantages of doing business with
a Commercial Bank. We earnestly hope
you will come aboard.

231 South LaSalle Street, Chicago, Illinois 60690




Subsidiaries: Continental Bank International, New York; Continental International Finance Corporation,
Chicago; Branches: London— City, West End; Tokyo, Osaka; Representative Offices: New York, Zurich



Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

any position on profit or loss on T&L accounts for the
entire banking system is based on very incomplete data.

This response has attempted to objectively review the
many points made by Rep. Patman in the first half of his
speech, taking them up as they were presented to the
Frankly, some of the points such as level of interest
rates would require much more space for complete analy­
sis than was available.
Undoubtedly over the span of years the Fed and ABA
have, as is true of other governmental agencies and trade
associations, done things which one individually may not
completely agree with. One does, however, find it some­
what disconcerting for a governmental executive holding
the position of responsibility of Chairman of the House
Banking and Currency Committee to display other than
a neutral and constructive attitude towards his areas of
The antagonistic attitude over several decades dis­
played by Rep. Patman toward banking tends to be selfdefeating. Banking is not perfect. But it is very very
far from a sinister conspiracy against the U. S. It is
dynamically changing in operations. It should have evo­
lutionary changes in legislation. From his high position
Rep. Patman could be a positive force in helping our
banks, our banking system, the Fed and the ABA. Not
by a subservient kow tow as to banking interests! Not
as a sycophant of any vested trade interest. Not as a
spokesman for banking. He should be concerned with
what is good for the United States as a whole. His ex­
treme antibanking statements—over a very long period
of years—are, in the opinion of this student of banking—

not only intemperate, they are for a large part incorrect
and partisan. They distort many important facts. What
is even more discouraging is that Rep. Patman seems to
favor some other financial intermediary over banks yet
these institutions probably have poorer records in many
areas than banks.
This is no way an inference that Rep. Patman is not
in many respects a brilliant politician. He has demon­
strated great ability over several decades in appealing to
his constituents by emotional issues, which are popular
in some sections of our nation. The issues of sinister
Wall Street banker manipulators, extracting inordinate
returns from the “little man”—the issue of a “few innersanctum” individuals gaining control of the monetary life
lines of our nation, and Rep. Patman, of course, is de­
fending the nation from these malefactors. And will
drive them from the temple!
Rep. Patman had the opportunity, by exercise of mod­
eration, temperateness and reason to be an influential
statesman in banking. He could have used his energies
and the power of his high position to work for construc­
tive, reasonable evolutionary changes in our banking leg­
islation. He has aroused such indignation among bankers by his hyperbolistic statements that their reaction to
his pronouncements on banking are immediately and
strongly adverse.
It is not too late for Rep. Patman to adopt a rational,
realistic, statesmanlike attitude towards central and com­
mercial bankers—but it is quite late. A leopard doesn’t
change his spots and it is unlikely that Rep. Patman will
at this late date change his highly distorted opinions.
Bankers have lived with his criticism for years. They
know that they are not part of a conspiracy against the
American people and that is important.—E n d .






Chicago ’ s
new and



AT 11th S T R E E T

Closest To All
Convention Centers f


F O R O V E R 65 Y E A R S


Prestige accommodations on Michigan Avenue — facing
Lake Michigan and Grant Park — so close to business,
convention centers, shopping and sightseeing. Ideal for
business men, vacationers or families.
* Heated swimming pool, poolside food
and beverages • Free courtesy car

throughout downtown
• Free parking on premises
• Free wake up coffee





f e d e r a l

d e p o s it

i n s u r a n c e

c o r p

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


♦ Free Radio, TV • Free ice cubes
Home of famous Cafe French Market and Le Cave
Lounge — entertainment nightly. Sensible rates at all
times. Plan your next trip, or sales meeting now.


PH O N E WA 2-2900— TW X: 312-431-1012

Write Dept.


For reservations— write or phone directly,
or thru your travel agent.



(a t a p r ic e y o u

c a n 't r e s i s t )

A tim e and tem perature display— and the public service it provides— has become the recog­
nized symbol of financial relia b ility. Good reason such displays are so closely identified with
leading fin a n cia l institutions.
Today, tim e and tem perature displays are a more attractive advertising buy than ever before
. . . fo r large or small establishm ents . . . branch or m ultiple locations.
The reason? A break-through in sim p licity and mass production by Digit Display reduces
the cost of basic tim e and tem perature units by as much as 50%. At the same tim e even higher
standards of quality and accuracy are being achieved.
If you have tabled a decision in favor of a tim e and tem perature display because of high
cost, ask your sign company fo r a new quotation based on Digit Display units. Or if you are just
starting to look into the matter, we can put you in touch with a local man with all the answers.
If you would like to know more about the exceptional versatility of these displays and their
public service value, w rite fo r our free, inform ative booklet, "Tim ely Ideas” .

4938 West Irving Park Road

Chicago, Illinois 60641

Telephone: Area Code 312 286-3233
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


Chemical Plans Merger
Directors of the First National Bank
in Yonkers and Chemical Bank New
York Trust Company have agreed to
terms of a proposed merger of those
With resources approximating $105
million, First National is the only com­
mercial bank headquartered in Yonk­
ers, serving the fifth largest city in
New York State and a population of
approximately 210,000. The city of
Yonkers is one of the most rapidly
growing residential-commercial com­
munities in the New York area.
The merger agreement, which is sub­
ject to approval by shareowners of the
First National Bank in Yonkers and
also by state and Federal regulatory
authorities, provides that Chemical
New York will exchange 0.31 shares
of its capital stock for each of the
508,200 shares of capital stock of First
National presently outstanding.
First National Bank in Yonkers was

New Recordak Unit
Add-on automation capabilities to
keep pace with growth-of-business mi­
crofilming requirements are provided
by the new Recordak Reliant 300 Mi­
crofilmer, just introduced by Recordak
Corporation, subsidiary of Eastman
Kodak Company.
In announcing the new unit, Van
B. Phillips, Recordak vice president­
marketing, said: “The Recordak Reli­
ant 300 is a brand new microfilmer,
not a successor model. It is produced
to meet the demand for a lower cost
microfilmer to complement the now
famous Reliant line of microfilmers.
The medium-priced Reliant 300 will
up-grade microfilming efficiency for
many companies which up to now
have thought automated microfilming

Auction Sale Clerks
• Receipts for Each Buyer
Here's a complete, time


established in 1933. Its head office is
at 20 South Broadway and it maintains
ten other convenient offices serving
Yonkers and vicinity.

• No Additional Listing

tested, performance guaran­

• No Posting of Accounts

teed outfit that combines all

• Combats Skip Buyers

the features you demand.

• Speeds Up Settling
• Buyers Like It.

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

«Telephone Nos. 536-2651

or 536-2522

Write Us for Sample Sheets and Information



300 MICROFILMER, produced by Recor­
dak Corp., is shown above. It is designed
for medium-range microfilming operations
and budgets. As a company’s business
grows, a number of accessories can be
added to the microfilmer as needed to auto­
mate and expand its capacity.

meant expensive equipment.”
Engineered for operator convenience
and designed on the modular princi­
ple to grow as a company’s business
expands, the Recordak Reliant 300 pro­
vides for optional accessories which
permit the user to “customize” the
microfilmer for his own special needs
a n d requirements. Customer-option
accessories include a precision auto­
matic feeder, automatic endorser-can­
celler co m b in a tio n , additional film
units and, a Recordak exclusive, the
Kodamatic Indexer. Any or all acces­
sory components can be made avail­
able initially at the time of installation
or at such later intervals as may be
determined by the need for increased
capacity and versatility.
Film units are available in 20:1 and
32:1 reduction ratios.
The new Reliant 300 is finished in a
new color combination which will har­
monize with the most modern office
decor. It is an eye-pleasing combina­
tion of desert sand and charcoal brown
with Chinese red accents.

World Time Chart

As a member of the Studley, Shupert Trust Investment Council, you
build a library of Recommendations For Typical Trust Account Prob­
lems . . . and find it, as many members say, “a gold mine of trust
investment philosophy” applicable to your own accounts. Write for
details of Council Membership.




Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis



P A . trÜ ^ T

A “World Time Chart” has been
published by the Manufacturers Han­
over Trust Company, New York. It
shows how to compute the time differences in over 100 countries through­
out the world as compared with New
York standard time which went into
effect Sunday, October 25. Included
also is a map of the Time Zones in
the continental United States, Alaska,
and Hawaii.
Free copies of the brochure may be
obtained from the cable department,
international division, Manufacturers
Hanover Trust Company, 44 Wall
Street, New York, N. Y.










Paying and receiving teller arrange­
ment with counter return.

Basic arrangement: paying and
receiving teller.

Further modification of basic arrangement,
particularly below front of counter.

Basic arrangement plus return with
additional drawers and cabinets.

(instead o f vice versa)
If getting a suit to f it required re-arranging your contours instead of the s u it’s, your best bet
fo r a good ta ilo r would be to pick a great surgeon.
Oddly enough, th is Alice In W onderland approach is found in counter equipm ent: often the
bank is expected to adapt its methods to equipm ent w ith fixed facilities.
Not us. Diebold Metal Counter Equipment, u tilizin g the M odular concept, is com pletely
flexible . . . arrangem ents are tailored to meet your specific operational needs. You get the
benefits of a custom -designed installation, yet there is no extra charge for this advantage.
But to get back to surgery . . . cut out the coupon below and get all the facts!





Dept B. | 23

Please send detailed
Counter Equipment.






Firm __________________________________________________________________





City_____________________________ State___________ Zip Code____________

In Canada: Diebold of Canada, Ltd. • Ahern Safe Co., Montreal
Federal Reserve Bank of St. Louis

DI B-2602


Northwestern Banker, November, 1964


Coin D a y


THIS ACTION at the Bank of Cali­
fornia’s San Francisco office was
duplicated at the bank’s 45 other
branches as bank employees turned
in 178,742 coins on “ Coin Day.”
Employees showed up at work not
only with piggy banks, but also with
coffee cans, jelly jars, jugs, bottles,
baby shoes, wastebaskets, sugar
bowls, and cookie jars.
In San Francisco, one employee
came in leading a 172-pound St. Ber­
nard puppy, its traditional cask giv­
ing out the clink of coins instead of
the gurgle of brandy.

New Installment Service
La Salle National Bank, Chicago,
has announced a new installment loan
service for Chicagoland businesses.
The bank has set up a Business Install­
ment Credit Division to give business­
men an opportunity to repay loans on
a monthly basis out of their normal
business “cash flow.”
With installment repayment terms
running as long as five years, this new
service will provide financing for both
capital and non-capital items. The
bank anticipates loan requests for such
things as machine tools, processing
and manufacturing equipment, office
furniture and business machines. Mer­
chants will be able to use the service
to acquire inventory, to remodel their
quarters, or to install new store fronts.
^ ^ D is tin c tiv e patterns evolve from new advances in the com m uni­
cations industry, such as found in this special sound-proof cham­
ber. So, too, with patterns in banking. La Monte Safety Paper—with
its pattern of Wavy Lines— has been recognized fo r dependable
check protection since 1871. Today, its quality is also preferred for
superior printability, sortabiIity and appearance. No wonder people
in every industry endorse La Monte.

Safety Paper for Checks


Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis






Plan Investment Convention
The 53rd annual convention of the
Investment B an k ers Association of
America will be held November 29December 4 in Hollywood, Fla., an­
nounced David J. Harris, IBA presi­
dent and partner of Bache & Company,
Convention sessions will be held at
the Hollywood Beach Hotel, and dele­
gates will be accommodated there and
also at The Diplomat, a nearby hotel
in Hollywood.
In addition to the presidential ad­
dress (November 30) by David J. Har­
ris and the inaugural (December 3) by
incoming President Wendell W. Wit­
ter, Partner, Dean Witter & Compa­
ny, San Francisco, the delegates will
also hear from a number of guest





N o m a tte r w h ere y o u r c u s to m e r s d o b u s in e s s , t b e y
w a n t tb e m o s t d ir e c t ro u te to s u c c e s s fu l fin a n c ia l
tra n sa c tio n s. You ca n b e lp m a k e th eir e ffo r ts
m o re s u c c e s s fu l th ro u g h th e se rv ic e s o f th e Irving,
“th e b a n k fo r b a n k e rs a n d b u sin e ssm e n ?

Ir v in g

T r u s t

C o m p a n y

Capital Funds over $175,000,000 OtlC Widll StfCCt, -A/é’W Yovk ,

~Y. 1 0 0 1 5

'Total Assets over $2,000,000,000

A. M u r p h y , Chairman of the Board
W i l l i a m E. P e t e r s e n , President
National Division—H. M i l l e r L a w d e r , Senior Vice President in Charge

G eorge

Federal Reserve Bank of St. Louis




Northwestern Banker, November, 1964


i*oultry Limns . . . / V o fit able Oppnvt unity
(Continued from page 23)
involved in making the loan is certainly within proper
banking limitations.
In fact, about the only thing the bank hasn’t resolved
to his satisfaction is the egg market. Will the margain
between the farmer’s selling price and his production
costs be great enough to pay off the loan? The answer
has been a very strong yes. In fact, the producer’s mar­
keting position becomes stronger each time a new factory
is built in his area. Why? Because egg buyers are look­
ing for, and must be able to depend on, a year around
supply of quality eggs. As more units are built in a com­
munity, the egg supply becomes stronger.
I can’t gaze into a crystal ball and predict next year’s
egg price, but I can tell you what has happened in the
past. In 1954, egg producers in Iowa received an average
price of 33 cents per dozen for their eggs. In 1959, the
average price they received dropped to 27 cents. In 1960,
the average egg price in Iowa climbed to 31 cents a dozen.
And in 1963 farmers received 28 cents per dozen for their
eggs. As these figures indicate, there has been a definite
egg-price cycle in the past, mainly because the production
of eggs fluctuated greatly from year to year. But as the
industry changes to commercial-size poultry operations,
year in and year out production is becoming more sta­
bilized. In turn, this tends to stabilize egg prices.
Five flocks recently completed 14 month laying cycles
in the first five of these units to be built in the Midwest.
By comparing the lowest egg price received by farmers in
Iowa for their eggs during the last 10 years, 27 cents per


dozen, to the average cost of producing a dozen eggs in
these five egg factories in 1963-64, 24.7 cents, one sees that
the units would have made money under the worst pric­
ing conditions since 1955. These five farmers actually re­
ceived an average price of 29.6 cents a dozen for the eggs
produced in their units in 1963-64. These figures shed a
great deal of light on past egg prices, and with the increas­
ing number of units being constructed, the future should
be even brighter.
However, not every farm should have an egg factory.
The type of operation best suited to a particular farm de­
pends on the farmer, his farm program, and his financial
status. A recent study published by a farm magazine
shows that it takes $19,149 in capital investment to pro­
duce $5,000 in annual income with a poultry operation.
According to the study, a dairy operation requires a $56,312 investment to net an equal amount. It indicates that
a man can make $5,000 annually by feeding hogs with an
investment of $16,955.
The beef cattle feeder, on the other hand, must invest
$65,056 to make as much as a man with a poultry invest­
ment of less than $20,000.
How do you help a farmer decide which of these roads
to take in search of more income? Study the man. If
he’s a good manager, if he has available family labor
which is not being utilized, and if he’s assured of receiving technical assistance, you should strongly consider
helping him build an egg factory.— End.






The Package Policy
Combines Homeowners
Needs for Protection
Homeowners and Tenants
can take advantage
of the "NEW " in
insurance with the



One Policy
One Premium
One Renewal Date
Western Mutual is a multiple-line
non-assessable company writing
under the American Agency System,
starting their 57th year in insurance.
Agency inquiries are welcomed.

Western M
utual Insurance Co.
616 10th Street
A Non-Assessable Multiple Line Company— Since 1907
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

Abundant natural resources (Cana­
da’s mining output alone is over
%2Vz billion a year) — plus rich con­
sumer markets and a fast-growing
economy —add up to real opportu­
nity for expansion-minded U.S.
businessmen and the banks who
service them. Canada’s first bank
has the knowledge to help your
clients begin profitable operations
north of the border. Visit or call any
of our U. S. offices whenever your
clients wish to “talk Canada” .


a n k


o f

o n t r e a l

CH ICAGO : Board of Trade Bldg.
141 West Jackson Blvd.
New York • Houston • San Francisco • Los Angeles




When the men of
The First meet
to discuss new
ways to serve
you better, you
are, in a very
real sense, at
the meeting
table with them.
This highly
skilled group of
specialists in
the field of
banking and
finance invite

to bring them
your problems.
Federal Reserve Bank of St. Louis

Member f.D.I.C
IV.AIN O F F IC E ~ 10th & B A L T IM O R E
D iivi- In B an k
13th & W a sh in g to n





HE Financial Public Relations As­
sociation has announced the dates
and locations of its annual series of
spring Regional Meetings for 1965.
The one-day meetings, actually conven­
tions in miniature, will be held: April
2 at the Penn Sheraton Hotel in Pitts­
burgh; April 5 at the New SheratonRitz Hotel in Minneapolis; April 26 at
the Monteleone Hotel in New Orleans.
Local committeemen in each of the
three cities are now planning pro­
grams for the meetings under the
chairmanships of:

John Eckels, director of advertising
and public relations, Mellon National
Bank & Trust Company, Pittsburgh.
Albert H. Heimbach, vice president,
Farmers & Mechanics Savings Bank,
Gilbert M. Mellin, vice president,
Whitney National Bank, New Orleans.
In conjunction with the Regional in
New Orleans, FPRA will hold a twoday meeting of its Research Commit­
tee the preceding Friday and Satur­
day, April 23-24.
The 1965 annual convention will be



P r iz e s fo r C oins

Charles G. Young, Jr., left, City Na­
tional Bank and Trust Company
executive vice president, is shown
presenting the two top prizes in the
bank’s recent coin contest. Anthony
Barber, right, receives a check for
$1,000.00 as the top coin producer
and William Ferris, center, gets his
$500.00 check for second place hon­
ors in the six week contest. Third,
fourth and fifth prizes were City Na­
tional savings accounts for $100.00,
$50.00 and $25.00.

held at the New York Hilton Hotel,
October 24-28. General chairman will
be Frank R. Swan, first vice president
of FPRA and executive vice president,
City National Bank and Trust Com­
pany, Oklahoma City.


‘ ‘Glass Bank** Anniversary

A g o in g , g r o w in g state. B oth in d u stria l a n d fa rm
in c o m e o n th e rise. In the th ick o f it: in v e sto ro w n e d I o w a P o w e r . . . ste a d ily e x p a n d in g e le c tr ic
a n d gas ca p a c itie s to stay w ell a h e a d o f the
in crea sin g p o w e r n eeds o f a v ig o r o u s e c o n o m y .

Write for annual report

¡ . . e r e s t a lk a m o n g

Time passes quickly, dating edifices
of all kinds. But somehow, Manufac­
turers H a n ov er T ru st Company’s
“Glass Bank,” completed 10 years ago
at Fifth Avenue and 43rd Street in
New York, remains as new as tomor­
The general public and the banking,
architectural and art worlds were
treated to a new concept in bank de­
sign on October 4, 1954, when the Man­
ufacturers Hanover office opened its
doors. From a design standpoint, the
building still looks as if it were erected
this year, or even next year. And it

b a n k e rs
t h e b a n k f o r a c t io n
They talk about the advantages of handling all their West Coast business
through one account with one bank. For example, the convenience of
routing aJJ West Coast items to any of our offices for credit to one account.


Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis





MEMBER F . D . I . C .

TEN YEARS YOUNG . . . Manufacturers
Hanover Trust Company’s famed “ Glass
Bank” at Fifth Avenue and 43rd Street,
New York City, was 10 years old last
month. Still looking as if it were built
this year— or next year— the branch has
been toured by upwards of 150,000 non­
customer visitors.







«su s


: L



A L o n g T e r m P a r tn e r s h ip
awrence —for over 50 years —has been in profitable partnership with
banks everywhere. During this period, Lawrence has been the leader in
field warehousing, issuing receipts on goods valued in excess of 10 billion
dollars for more than ten thousand business firms. That is why, from this
long association, bankers know they can specify Lawrence...and be secure.

T he L aw r e n ce Com pan y
S IN C E 1 9 1 3

San Francisco
Federal Reserve Bank of St. Louis

^ * 7 ^ 1

d i
• Chicago • New York • Denver
Northwestern Banker, November, 7964


Window Exhibits . . .
(Continued from page 25)
Measure of Interest

Normally, an interesting display can continue to attract
people for about six to eight weeks. Often, we tie in some
giveaway with the display series and we can judge by
the number of these items distributed when we have, in
effect, saturated our viewing public.
There have been exceptions to this rule at times, espe­
cially when we have kept a basic unit in each window
and changed some of the elements periodically.
Further, we find that moving the displays from one
side of the building to the other creates renewed interest.
Apparently, many people follow a rigid traffic pattern
to and from their jobs and, consequently, they only see
half a given exhibit unless such a move is made.
In conclusion, I would say without qualification that
displays and exhibits can be most effective media for
image or institutional advertising. But, an amateurish,
cheap display imputes these qualities to the bank and,
unless money is spent and professional assistance sought,
it might be better to stick with plants and flowers . . .
as long as they're real!—End.

n o n e e d


b a ttle

s in g le -




Studley, Shupert Trust Investment Council members call on the
research facilities, group experience and group thinking of the
Council Staff to help meet their tough investment problems.
You can get this help, too! Write for details.







P A . T^


may well radiate that impression for
years to come.
In its decade of operation, the fivestory aluminum and glass structure
has been toured by upwards of 150,000
non-customer visitors, has won numer­
ous design awards, has been featured
in high-fashion and high-tone adver­
tising by major companies, and has
attracted architectural, art and bank­
ing experts from around the globe.


Joins Bankers
Service Company


Richard C. Newlin was elected vice
president of Bankers Service Compa­
ny, Des Moines, last month, filling the
vacancy created by the death of Er­
win C. Jones sev­
eral months ago.
He began his new
duties by attendin g th e I o w a
Bankers Conven­
Mr. Newlin got
his early banking
experience w i t h
the Decatur Coun­
ty State Bank of
R. C. N E W L I N


where he served as assistant cashier
for two years, following which he
served two years in the armed forces.
Upon his release from the service, he
entered the employ of the First Fed­
eral State Bank of Des Moines as as­
sistant cashier and continued in that
capacity until 1958 when he resigned
to accept a position as assistant vice
president of the National Bank of Des
Moines. For the past two years he
has been employed as director of ad­
missions in the College of Automation
in Des Moines.
Mr. Newlin will spend much of his
time calling on banks and assisting
the president in handling bank sales
and will be in charge of the personnel
placement department.




Heads Travelers
Cheque Sales


T h in k ...

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

Michael E. Lively has been elected
vice president of American Express
Company, according to President How­
ard L. Clark.
Mr. Lively will assume responsibil­
ity for the management of the Trav­
elers Cheque Division world-wide un­
der the direction of Senior Vice Presi­
dent James A. Henderson, whose other
management duties remain unchanged.
Since 1961 Mr. Lively had served in
Zurich as a vice president of the
American Express overseas subsidi­
ary in charge of the company’s activi­
ties in Switzerland.






E nd uring
As R ushm ore

Throughout all parts of our operating territory, Bankers, for over 40
years have gained substantial, steady profits, as the result of affiliation with
our tested Bankers Participation Plan.
Our aggressive development program, now in effect, enables us to offer
you the advantages of our profit-making Bankers Participation Plan.
We rank in the upper l/4th size bracket of all American insurance com­
panies—and operate in over half the states in The Nation— and in The
Dominion of Canada. National Reserve Life has over
$325,000,000 Insurance In Force— backed up by Assets
In Excess of $85,000,000.
It will be worth your time, to let us supply you
complete details about our profit-making Bankers Par­
ticipation Plan!

Your inquiry will be in strict confidence. We will send
you complete details about our Bankers Participation
Plan— as well as attractive territories now available.


Topeka, Kansas • Sioux Falls, S. Dakota
Federal Reserve Bank of St. Louis

Chairman of the Board
Northwestern Banker, November, 1964


F M U Funds Up
deposit insurance fund admin­
istered by the Federal Deposit In­
surance Corporation for the protection
of deposits in insured banks reached
$2,756.5 million by June 30, 1964, pub­
lication of FDIC’s semi-annual “Report
to Insured Banks” discloses, as
signed by Chairman Joseph W. Barr.
This is an increase in the fund of
$88.6 million for the first six months
of 1964, representing total income of
$97 million less expenses and losses
of $8.4 million. Total income for this
Amer i c a' s L ar ges t
Under wr i t er s of
Insti tuti onal Loans





Current yields range from

4 to 51/2% . . . offering

six month period came primarily from
income of $52.4 million from the cor­
poration’s U. S. Government holdings
of $2,919.3 million, and from net assess­
ments against insured banks of $44.6
At the mid-year point of 1964, total
assets of the corporation were just
under $3 billion, at $2,968.4 million.
The U. S. Government portfolio con­
stituted the largest part of assets, with
assets acquired in receiverships and
deposit assumption transactions shown
at a net after reserves for losses of
$10 million, and the corporation’s
land and office building carried at $8.3
million. Liabilities were carried at
$211.9 million, the bulk of which —
$208.8 millon—is in the form of assess­
ment credits due banks.
During the first six months of 1964
two insured banks failed, requiring
disbursements by the corporation.
This brought to 449 the number of
cases in which the corporation had
been called upon to make disburse­
ments for the protection of depositors,
from the time the corporation began
operations on January 1, 1934, through
June 30, 1964.

Promote Insurance

specific portfolio needs.

West Bend, Wisconsin

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

He was elected vice president and
agency director, and a member of the
board of directors in 1958. He has
also been serving as a member of the
executive and investment committees.
Mr. Edison joined the group at the
home office here in 1948. He served
as underwriting manager and region­
al manager of the companies in Oma­
ha, Neb., prior to his transfer to
Springfield in 1960.



G. A. Costanzo has been appointed
a senior vice president of First Na­
tional City Bank, New York, with re­
sponsibility for the bank’s overseas
division operations in Argentina, Bo­
livia, Brazil, Chile, Paraguay, Peru and



to fit

Branch Offices:
MILWAUKEE— 735 North Water Street
C H IC A G O — 135 S. La Salle Street, Suite 2048
ST. LOUIS— 411 N. 7th Street
TOLEDO— 6620 Lincoln Pkwy.
NEW YORK— Chrysler Building, Suite 609
MINNEAPOLIS— 607 Marquette Avenue
MEMPHIS— 420 Dermon Bldg.
DUBUQUE— 1003 American Trust Bldg.

R. D. E D I S O N


ready marketability, and

J. S. T R E S S L E R

Heads Overseas Division

Joseph S. Tressler has been elected
executive vice president of HawkeyeSecurity Insurance Company and the
United Security Company, it was an­
nounced by George Olmsted, chairman
of both companies.
Robert D. Edison, assistant vice

banks attractive income,

president and regional manager of the
companies’ Springfield, 111., office, suc­
ceeds Mr. Tressler as vice president
and agency director.
Mr. Tressler joined the two affiliated
companies in 1946. He was successive­
ly assistant secretary in charge of sta­
tistical and tabulating departments,
and assistant vice president in charge
of corporate activities.

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

Yours for th asking—a complete packaged
promotion that gives prospective customers
new reasons for opening an account at your
bank. It projects a Security Image to present
customers at the same time—one that auto­
matically repeats itself every time a cus­
tomer receives his cancelled checks.
The Cummins Security Hallmark promo­
tion includes a handsome plaque to display
in your lobby that explains your use of per­
forated cancellations for depositor protec­
tion; a variety of advertising mats for use in
local papers that tell these new reasons for
banking with you; radio and television com­
mercials; publicity releases; envelope stutt­
ers and other useful material. It’s all yours
for the asking. Just check the box and
return this ad to:

' SIN C E 1887 /

4740 N R A V E N S W O O D A V E
• C H IC A G O 40. IL L



DESTINATION: 3 swallows and an olive away
A martini is symbolic. It represents good
things . . . like business lunches, meeting
friends, special celebrations . . . and Ozark
Air Lines’ cocktail flights.
Serving cocktails in flight is just a new sign
o f the growing that’s been going on at Ozark.
W e’ve also added new service (now serving
58 important Mid-America cities) . . . new
jet-prop aircraft . . . continental breakfasts
and snacks . . . and we’ve introduced the new
R e a d y -R e f tim etable. N ot to m ention
O zark’ s new hangar and headquarters
facilities in St. Louis.

Getting you there on time, and giving you
the best service under the sun are of prime
im portance at Ozark . . . always getting
better and better! If you’re a real go-getter,
take your next Midwest trip aboard Ozark
. . . the airline that’s on the move . . . run by
and for go-getters!

go O

Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


Midland's John Ordos and Doug Johnson show how they clear the air of obstacles to give you prompt action.

Midland“Aces’ conquer delays
1ransit problems go down in flames when you put your trust in the Midland
team. Our ace correspondent bankers are John Ordos and Doug Johnson. And
you couldn’t find a better escort for your funds if you searched the sky.
Need help with credit, collections, loan participations, operations, safekeeping,
trust and transit ? Having these Midland men on your team is the next thing to
having your own office in Minneapolis. Call John Ordos or Doug Johnson
today; they’ll prove Midland’s friendship with their special service.

M id la n d N a tio n a l B a n k
FEderal 2-0511 • 2nd Ave. So. and 4th St. • Minneapolis Minn. 5 5 44 0
M e m b e r F e d e ra l D ep o sit In s u r a n c e C o rp o ratio n

Northwestern Banker, November, 7964
Federal Reserve Bank of St. Louis



Dr. Roy F. Pierson and Stanley W.
Nordin, Slayton, were recently elected
directors of the governing board of
Murray County State Bank, Slayton,
according to bank President Joseph R.

M in n e s o ta



Insurance Department Sold


Hohl Junior Stuff
N D R E D S of representatives
banks in every part of Min­
nesota gathered in R o c h e s te r last
month for the 15th annual Minnesota
Bankers Association Junior Bank Offi­
cer and Staff Conference held at the
Kahler Hotel.
Minnesota Bankers President Glenn
A. Uggen, president of the Peoples
State Bank, Wells, presided.
The Junior Bankers Conference is a
meeting of staff members and junior
officers from most of Minnesota’s 700
banks. It is sponsored by the state
bankers association’s educational com­
mittee, the group responsible for or­
ganizing banking education classes
throughout the state.
Registration for the 15th annual con­
ference began Tuesday afternoon, Oc­
tober 13, in the Kahler Hotel, Roches­
ter. A buffet dinner and dancing for
bankers and their wives was held that
evening in the Heritage Hall of the
The full-day speaking program on
October 14 was called to order by J. P.
Delmore, vice president of the Lake
City State Bank and A.I.B. associate
councilman for Minnesota. MBA Pres­
ident Glenn Uggen addressed the bank­
er delegates and welcomed them to the
“Effective A d v e r t is in g for Small
Banks” was the subject of a talk by
Robert W. Williams, vice president of
the LaSalle National Bank, Chicago.
Following on the morning program
was Vern Waldo, vice president of the
American Institute of Banking and
vice president of the First National
Bank, Reno, Nev. Final speaker on
the morning program was Dr. Edward
H. Rynearson of the Mayo Clinic in
Rochester with “Tradition of the Mayo
Brothers as It Applies to Young Physi­
cians and Young Bankers.”
Lynn B. Duncan, chairman of the
MBA educational committee and as­
sistant vice president, Northern City
National Bank, Duluth, presided at the
noon luncheon. Featured speaker was
Ray Scott, announcer for the Minne­
sota Twins Baseball Club.
Arthur A. Erpelding, councilman
for the A.I.B. and assistant treasurer
Federal Reserve Bank of St. Louis

Slayton Board Members

for the Farmers and Mechanics Sav­
ings Bank, Minneapolis, presided dur­
ing the afternoon session.
“Audit Procedures in a Country
Bank” by Thomas R. Smith, president,
First National Bank, Perry, Iowa, led
off the afternoon program. George B.
Wendt, vice president, First National
Bank, Chicago, followed with “ Man­
agement of Bank Bond Portfolios.”
Final speaker on the program was
psychiatrist Frank Campbell of St.
Louis, Mo.

Wayzata Bank Expands
Construction recently began on new
facilities at the Wayzata State Bank.
Anticipated completion date has been
set for early December. Under con­
struction are increased off-street park­
ing facilities and enlarged traffic lanes
to both drive-in tellers’ windows.

Robert S. Lundsten, president of the
Minnetonka State Bank, Excelsior, re­
cently reported that, effective Novem­
ber 1, the Roger Hennessy Agency ac­
quired the accounts and general insur­
ance business of the bank’s insurance

Begin Savage Bank
Work recently commenced on the
new Savage State Bank, Savage, with
completion of the structure scheduled
for March 1, 1965. John D. Chisholm,
Minnesota commissioner of banking,
and bank President Howard Houston
took part in ground-breaking cere­

Lexington Bank Opens
The Centennial State Bank of Lex­
ington opened its doors for the first
time early in October, according to
Steve Vagasky, vice president. Presi­
dent of the bank is T. H. McGee, for­
mer vice president of the Midway
National Bank, St. Paul, where he had
been associated for 42 years.

Wahpeton President Dies
Horace F. Lahren, 53, president of
Citizens First National Bank, Wahpe­
ton, died recently. He had become
president of the institution in Febru­
ary after having been employed by
the bank since April 21, 1930.

Waconia Cashier Honored
Ben H. Hartmann, assistant cashier
of the First National Bank, Waconia,
was honored October 19 at the Salva­
tion Army-sponsored State Advisory
Conference on Human Relations at
Minneapolis. Mr. Hartmann was laud­
ed for his volunteer services in the
cause of better human relations.


Willmar Bank Opens
The newly-constructed Citizens Na­
tional Bank of Willmar opened early
in October, according to bank Presi­
dent C. R. Forstrom. The opening
was delayed approximately one month
due to a delay involving delivery of

Open House Held
Open house was held October 31 at
the n e w ly -re m o d e le d Union State
Bank, Thief River Falls. Innovations
include carpeting throughout, new fur­
nishings and after-hour depository fa­

tsHuihlíng in Suburb

NEW HOME for Park National Bank in the Minneapolis suburb of St. Louis Park
is the first of several proposed structures in the new 100-12 Cloverleaf Plaza, suburban
office building center.
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

the area’s FIR ST computerized
Our big computer installation now has been programmed to pro­
vide a faster—and more comprehensive—Bond Trading Analysis
for our correspondent bank customers. We invite you to use this
new service next time you contemplate a change in your portfolio
of Government or Municipal bonds. Our trading analysis now can
cover not just one or two alternative issues but several.
This new type of Bond Trading Analysis is a major step forward
in computerized correspondent bank service here at First o f
Minneapolis. We are the first in this area to offer it. T o avail your­
self of this new service on your next bond transaction, just call our
Bud Omlie or Don Wachholz, or any member of our Investment
Department, at

F E d e r a l 4 -4 1 4 1

M These are the men (Don Wachholz
and Bud Omlie) and this is the
computer (our big I B M 1401 unit)
that make possible our new
Bond Trading Analysis.


F irst National Bank



of Minneapolis
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n








Federal Reserve Bank of St. Louis
























Minnesota News

Klossner Bank Remodels
The Klossner State Bank, Klossner,
recently completed its second remodel­
ing since the bank first opened for
business November 1, 1919. Victor J.
Sondag is president of the bank.

Robbinsdale Director
Albert W. Steele, general manager
of a Robbinsdale lumber firm, has been
elected a director of the First Rob­
binsdale State Bank, according to bank
President John Brauch.

Pine County Officers
John O’Brien, president of Security
State Bank, Askov, was elected presi­
dent of the Pine County Bankers Asso­
ciation at the regular fall meeting held
at Hinckley. Carrol Myre, assistant
cashier, First National Bank, Pine
City, was elected vice president and
J. L. Graf, president of the First State
Bank of Finlayson, was named secre­

Charter Issued
The banking division of the State of
Minnesota Department of Commerce
on October 13 issued a charter to the
Guaranty State Bank of Robbinsdale,

Robbinsdale, with capital of $200,000
and surplus of $100,000. President of
the bank is Walter C. Rasmussen. Oth­
er officers include Warren R. Thomp­
son, executive vice presdent; Clifford
L. Theis, vice president, and Gerald L.
Johnson, cashier.
The bank opened for business on Oc­
tober 26.

Granite Falls Remodeling
Extensive remodeling of the Granite
Falls Bank at Granite Falls is under­
way. Extra room will be provided on
the main banking floor by moving the
bookkeeping department to new quar­
ters in the basement. This department
will be connected by inter-com with
first floor facilities.

Buys Corner Property
Officials of the Klein National Bank
at Madison revealed last month they
have purchased property on the cor­
ner of the same street on which the
present bank building is located and
future plans for construction of a
new bank building will be announced

Buys Blue Ribbon Winners
The Farmers and Merchants State
Bank, Appleton, purchased three blue
ribbon winners in baby beef and lamb
divisions at the Minnesota 4-H Junior
Livestock Show at South St. Paul. The
winners, all from the Appleton area,
were James Perry, Brenda Nilson and
Gail Perry.

Named Assistant Cashier


You'll Be in Good Company at

Roger H. Anderson joined the staff
of the First National Bank of Hastings
last month as an assistant cashier.
He was with the First State Bank at
Coon Rapids for one year and has
been with the First National Bank of
Cannon Falls since May, 1963.

Cambridge Remodeling




PLANNING a sales meeting or convention? Our 30
Meeting and Exhibition rooms accommodate up to
6,00 0 for meetings—4 ,0 0 0 for banquets.

Remodeling of the Cambridge State
Bank at Cambridge was completed last
month. Elmer V. Erickson, president

FOR THE FIRST TIME since its founding
25 years ago, the big Minneapolis Aquatennial festival has chosen a banker as its
Commodore. He is Alan H. Moore, vice
president, First Natl. Bank, Minneapolis,
shown receiving his cap and other official
raiment from Queen of the Lakes Mary
Sue Anderson. The Aquatennial is held
in July.

for the past 32 years, said it is the
fourth such expansion remodeling in
the 50 years he has been with the
bank. One of the new services added
this time is a “Junior Savings” facil­
ity for the use of children of the com­

Joins Virginia Bank
Clifford L. Kahnk has been elected
assistant cashier and controller of the
State Bank of Virginia, it was an­
nounced last month by R. H. Willenbring, president. Mr. Kahnk moved
to Virginia from the Murray County
State Bank at Slayton, where he was
assistant cashier and auditor.
In other changes at Virginia, Mr.
Willenbring said Donald Westfield has
been appointed a loaning officer in the
installment loan department, Norman
J. Sampson has been moved into com­
mercial and real estate loans, and
Ronald J. Havlik succeeds the latter
as manager of the installment loan

Bankers are Select Risks and we have special coverage

|N AM E___________________

designed for Bank Men and W om en.

I FIRM ___________________

and Information.

I ADDRESS______________


, CITY____________________ ZONE_______STATE.

FOR ROOM RESERVATIONS W R IT E PHONE 612 333 6161--TWX 612-321 1166

N orthwestern Banker, N o v e m b e r , 19 6 4
Federal Reserve Bank of St. Louis

Write for Application

Minnesota Commercial Men’s Association
2550 Pillsbury A ve. S.

Minneapolis 4, Minnesota

Shopping for Bonds?
Asst. Vice President 221-9548
Asst. Cashier


Asst. Cashier


Asst. Cashier


Call any one of our 4 Jacks for expert advice on buying municipal, state and government
bonds. These men know what’s going on because they deal daily in the Midwestern and
national market and with both local and national syndicates.
For the best advice and the best selection, call our Municipal Bonds Department and dial
Jack, Jack, Jack or Jack direct.

Municipal Underwriting Department—Division II—C.G . Frame, Sr. Vice President

First National Bank of Saint Paul
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1964

Minnesota News

Twin City News


executive changes have
been made by Northwestern Na­
tional Bank in anticipation of the
retirement at the end of this year of
Donovan E. Crouley, senior vice pres­
ident and head of the bank’s corre­
spondent bank department for the
past 20 years.
Philip H. Harris, senior vice pres­
ident, will have overall responsibility
for banks and bankers, business de­
velopment and marketing activities.
Leonard P. Gisvold, vice president,
will assist Mr. Harris in administra­
tion of the three divisions.

development, advertising
licity departments.





Milford E. Lysen retired from the

Federal Reserve Bank of Minneapolis
last month, after a tenure of 47 years.
An assistant vice president since 1961,
Mr. Lysen was responsible for systems
and procedures planning at the bank
since the early 1940’s. He attended
South High School in Minneapolis, the
University of Minnesota, and the Rut­
gers University Graduate School of



Four major changes in commercial
banking responsibilities at First Na­
tional Bank of Minneapolis were an­
nounced last month by President
Gordon Murray.

D . E. C R O U L E Y

L. P. G I S V O L D

P. H. H A R R I S

K. M . B A R N E T T

Keith M. Barnett, a vice president,

who has supervised the bank’s market­
ing functions, will head the banks
and bankers division.
Donald M. Anderson, an assistant
vice president in the commercial divi­
sion, will return to the banks and
bankers division.
John McHugh, vice president, will
be in charge of the business develop­
ment and national accounts division.
Edward W. Asplin, vice president,
will be in charge of the marketing
division, which includes the industrial
N orthwestern Banker, N o v e m b e r , 1964
Federal Reserve Bank of St. Louis

He pointed out that the changes,
which include the establishment of
two new official positions, are part
of the bank’s continuing program to
streamline internal operations and
business development activities.
Vice President Philip M. Harder
assumes the new position of vice pres­
ident and senior lending officer and
in this capacity will work closely with
Rufus W. Hanson, executive vice pres­
ident. Mr. Harder will be responsible
for all commercial and mortgage lend­
ing policies.
Robert W. Fischer, formerly vice
president in charge of the national cor­
porations division, moves to the new
position of vice president and senior
marketing officer. His responsibility
will be to direct all commercial mar­
keting and business development pro­
Joseph R. Kingman III, presently
with the bank’s trust department, will
succeed Mr. Harder as head of the
First National division which serves
the grain, milling, food processing and
related fields.
Mr. Fischer’s responsibilities as
head of the national corporations di­
vision will be taken over by Edward
C. Brown, Jr., who is rejoining First
National after a period of service as

vice president of First Bank Stock
Corporation and president of its First
Bancstock Equity Corporation.
Three First National Bank staff offi­
cers were also named last month by
President Murray in a promotion and
responsibility reassignment move au­
thorized by the board of directors.
The action named a new depart­
ment head in the bank’s main office
and brought a veteran assistant man­
ager of the West Broadway office to
the downtown bank.
Stanley E. Holmberg was named
assistant vice president and real estate
officer. He succeeds George J. Hirsch
who retired October 1 as head of the
real estate loan department.
Kenneth O. Martinson becomes as­
sistant cashier in the main office after
13 years as assistant manager of the
West Broadway bank.

J. R. K I N G M A N I I I

E. C. B R O W N . JR.

P. M . H A R D E R

R. W . F I S C H E R

Robert E. Westbee, formerly assist­
ant cashier at the downtown bank,
succeeds Mr. Martinson as West Broadway’s assistant manager. He also re­
tains his assistant cashier title and


V ice President
Theo. H am m Brew ing Company
Chairman o f the Board
Genera] M ills, Inc.
D irector
S. T. M cK night Company
G EO R G E B. C L IF F O R D , JR .
J O H N H . D A N IE L S
Archer Daniels Midland Company
Chairman o f the Board
Archer Daniels Midland Company
D O N A L D C. D A Y T O N
The Dayton Company
S T E P H E N P. D U F F Y
Our Own Hardware Company
A L B E R T G. E G E R M A Y E R
Senior V ice President
Cargill, Inc.
M innesota and Ontario Paper
B. C. G A M B L E
Chairman o f the Board
Gamble-Skogmo, Inc.
The Pillsbury Company
Chairman o f the Board
Peavey Company
Chairman of the Board
and Chief E xecu tive Officer
Northern States Power Company
The John Leslie Paper Company
Northw est Bancorporation
J O H N S. P IL L S B U R Y , JR.
Northwestern N ational
L ife Insurance Company
S A M U E L H . R O G ER S
Senior V ice President and
E xecu tive Trust Officer
H E N R Y T. R U T L E D G E
E xecu tive V ice P resident
Chairman o f the Board
The Strong Scott M fg . Company
H A R O L D H. T E A R S E
Searle Grain Company
Red Owl Stores, Inc.
E xecu tive V ice President
Honeywell, Inc.
University of Minnesota
D irector E m eritus



OCTOBER 1, 1964

Cash and due from banks ..... ..........$171,102,640.73
U. S. government obligations ....... 104,698,522.81
Other bonds & securities ................ 41,921,764.56
Loans & discounts .................
Customers’ liability on acceptances 12,323,122.32
Income earned but not collected .....
Bank premises, furniture
& fixtures ...........
Other resources ..................................

Capital stock ...................................... $ 15,000,000.00
Surplus ................................................ 25,000,000.00
Undivided profits .............................
Reserve fo r possible
future loan losses .....
Reserve fo r interest, taxes, etc......
Income collected but not earned ....
Letters o f credit and acceptances.... 12,323,122.32
Deposits ........
Total Liabilities ............

Total Resources .......................... $682,762,406.99

Federal Reserve Bank of St. Louis


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









Minnesota News
opening at which three mink boas
were awarded as ladies’ door prizes as
were two men’s suits and 50 free oneyear rentals for safe deposit boxes.



George In Michael, Edina, was elect­
ed a vice president of the American
National Bank of
St. Paul recently

AUTO TELLER now in use by First State Bank, St. Paul, Minn.

First State Bank of St. Paul recently
held an open house to celebrate the

opening of two new drive-in windows,
Several thousand persons attended the


th e


board of directors.
American Nation­
al President John
F. Nash, in mak­
ing the announce­
ment, re p o rte d
that Mr. Michael
will be in charge
of the bank’s per­
G. L. M I C H A E L
sonal loan and
consumer credit department.



Ralph R. Kriesel, president of the

Downtown State Bank of St. Paul,
reports that an open house was held
at the bank October 12. Robert G. Lexvoid, Richfield, has been named exec­
utive vice president. Other officers
include Vernon H. Theyson, vice pres­
ident, formerly vice president of North­
western Bank of Commerce, Duluth;
R. Eugene LaFrance, vice president
and cashier, who previously held the
same posts with Phalen Park State
Bank, St. Paul, and Rowan C. Mc­
Allister, assistant cashier, formerly
with the First National Bank of Hud­
son, Wis.

=t= *

J. Cameron Thomson, veteran bank­
er and economist, has been named a
member of the board of directors of
The Mosler Safe Company, according
to Edwin H. Mosler, Jr., chairman of
the board.
Mr. Thomson is retired chairman
of the board of Northwest Bancorporation of Minneapolis and past presi­
dent of the American Institute of
>i= >i= *

J. Walter Sexton has been elected
vice president of Northwestern Na­
tional Bank of Bloomington-Richfield,
according to C. Addison Dahl, presi­
dent. Mr. Sexton will manage the real
estate mortgage department. He had
been with the bank’s Lake Street office
since 1947.



Northwestern Banker, November, 7964
Federal Reserve Bank of St. Louis



Noel E. Maanum has been advanced
to assistant cashier in the proof and
transit department of Marquette Na­
tional Bank, it was announced re­
cently by Carl R. Pohlad, president.
Mr. Maanum joined the bank this year
after having been with First National
for 13 years.


Banquet—Embassy Room, Inn
Motor Hotel.
Hogan E. Iverson, Presiding.
Introduction of Guests.
Address: Peter Reich, Aero­
space Editor, Chicago American,
Chicago, 111.
8:30 Adjournment.— End.

S o iit li l i a k o l a




Watertown Bank Begun


I '/ iiii 3 i t i n i u jv i n v u l

V u n fw e n e e

OUTH DAKOTA b a n k e r s were
scheduled to meet at the Inn
Motor Hotel in Huron November 4 for
the 16th Annual Bank Management
Conference sponsored by the South
Dakota Bankers Association.
The advance program featured three
speakers in the morning, a panel at
noon, three panels in the afternoon,
and a closing speaker at the banquet.
Details of the program follow:
^ jyj

November 4, 1964
Inn Motor Hotel

8:3010:00 R e g is t r a t io n —Lobby of Inn
Motor Hotel.
First General Session

10:00 Call to Order—Embassy Room.
F. W. Cord, Chairman, SDBA
Bank Management Committee,
Official W e lc o m e — Hogan E.
Iverson, SDBA President.
10:15 “Bank Bonding Coverage and
Procedures” —
Leonard R. Moeller, Assistant
Secretary, Bond Department,
St. Paul Fire & Marine Insur­
ance Company, St. Paul, Minn.
10:45 “ The Impact of Federal Legis­
lation on Banking” — James
Smith, Assistant Federal Leg­
islation C o u n s e l , American
Bankers Association, Washing­
ton, D. C.
11:15 “The Banker’s Role in Commu­
nity Development”—Donald H.
Thomas, Assistant Vice Presi­
dent, First National Bank of
St. Paul, St. Paul, Minn.
12:15 Luncheon—Embassy Room, Inn
Motor Hotel.
A. S. Gullickson, SDBA Exec­
utive Secretary-Treasurer, Pre­
Panel: “ Student Evaluation of
SDBA Economic C o n fe re n ce
for Young Adults”—Carol Braley, Cathy Morrill, Rosanna Parmeter, James Beitz, Fritz Leigh,
Steve Plummer.
Moderator—Miss Dona Brown,
Huron High School Counselor;
Member, South Dakota Board
of Regents.
Federal Reserve Bank of St. Louis

“AIB Progress in South Dakota”
— J o h n Krastins, Associate
Councilman for AIB Region
No. 10, South Dakota.
Second General Session


Seminar “A” : E. C. Pieplow,
Seminar Leader; Vice Presi­
dent, First National Bank of
Aberdeen, Aberdeen.
Seminar “B”: Willard Lynch,
Seminar Leader; Assistant Vice
President, Farmers State Bank,
Seminar “C”: Richard Wold,
Seminar Leader; Assistant Vice
President, Northwestern Na­
tional Bank, Sioux Falls.
4:30 Reconvene in Embassy Room.
Reports—Seminar Leaders.
5:00 Social Hour—Crown Room, Inn
Motor Hotel.
Hosts: Farmers and Merchants
Bank, Huron; W. M. Griffith,
National Bank of South Dako­
ta, Huron; George Goodell, Vice
President and Manager.
Northwestern National Bank,
Huron; John Lasher, Vice Pres­
ident and Manager.

Excavation and preparation for foot­
ings and foundation work got under­
way early in October for the new
Farmers and Merchants Bank site at
Watertown, according to V. D. Basart,
bank president. Mr. Basart also an­
nounced that Wayne Bredeson was
named executive vice president of the
bank at a recent meeting of the board
of directors. He was formerly vice
president and trust officer.

Farm Representative
Carl Myers, recently of Watertown,
has been hired as agricultural repre­
sentative at Citizens State Bank of
Redwood Falls, according to Charles
Thorkelson, president.

Homecoming Queen
Miss Mary Van Camp, daughter of
Mr. and Mrs. Roy­
al Van Camp, a
17-year-old senior
at R ig g s H igh
School, P ie rre ,
w as r e c e n t l y
chosen Minneshos h e Q u e e n at
Pierre’s H o m ecoming. Her fa­
ther is cashier at
the Pierre Nation­
al Bank, Pierre.

Yes Sir,
t h a t ’s


m y


b a n k J"

JOHN KRASTINS, C a s h ie r


for help
with your




is J A - L , B A N


Sioux Falls, South Dakota

Northwestern Banker, November, 1964

will be used for private consultation
rooms and to house some of the post­
ing equipment.
G. A. Klefstad is president of the

N orth lla k o lii




5 5 0 Attend Group AMeetintfs


N o rth e a st

managing officer at the First Bank of
Rolla. He succeeds Arnold Braaten,
president of the bank for two years,
who resigned to become executive vice
president and director of the First
National Bank in Bozeman, Mont.
Mr. Thompson has been with the
First Service Corporation in Minneap­
olis. The First National Bank in Boze­
man, The First Bank of Rolla and the
First Service Corporation are all affil­
iated with the First Bank Stock Cor­
Mr. Thompson began his banking
career in 1955 with the First National
Bank of Minneapolis.

Makes Student Loan
The Merchants National Bank and
Trust Company of Fargo, N. D., re­
cently made a student loan to John
Deutsch of Battle Lake, Minn., a sen­
ior at North Dakota State University

G ro u p

President: Edward L. Olson, senior vice
president, First National Bank, Grand
Vice President: Gordon Larson, president,
First State Bank, Park River.
Secretary-Treasurer: D. N. LaRocque, vice
president, W alhalla State Bank, W a lhalla.
State Nominating- Committee: J. H. Engesather, cashier, Citizens State Bank,
N o rth w e s t

S o u th e a st

G rou p

President: H. F. Buegel, vice president,
Jamestown National Bank, Jamestown.
Vice President: R. G. Burges, cashier, Se­
curity National Bank, Edgeley.
Secretary-Treasurer: S. D. Jacobsen, pres­
ident, First State Bank, Sharon.
State Nominating Committee: T. A. Roney,
president, Foster County State Bank,
S o u th w e st

G ro u p

President: Ed Vukelic, assistant cashier,
Commercial Bank, Mott.
Vice President: Lloyd Kempt, president,
Grant County State Bank, Carson.
Secretary-Treasurer: Ken Meier, executive
vice president, First National Bank,
StateNominatingCommittee: Robert Wells,
president, Security State Bank, Robin­

STUDENT LOAN program continues at

of Fargo. Since the bank began this
student loan program in cooperation
with United Student Aid Funds, Inc.,
Merchants National has helped 75 stu­
dents gain a college education.

Retires After 38 Years
Miss Agnes Newman, well-known
Fargo banker, retired recently after
38 years with the Dakota National
Bank in Fargo. She began her career
with Dakota National in 1936 as secre­
tary to the president of the bank. At
the time of her retirement she was an
assistant cashier.

New Addition at Napoleon
New President at Rolla
Jack M. Thompson was recently ap­
pointed president, director and new
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis

Official notification was issued recently from the state banking board
in Bismarck, that the Foster County
State Bank of Carrington had received
permission to establish a paying and
receiving station at Woodworth.
T. A. Roney, president of the bank,
said the Woodworth operation would
be similar to those currently operated
by the bank at Kensal and Glenfield.




Horace Lahren
Horace Lahren, 53, president of the
Citizens F ir s t N a tion a l Bank at
Wahpeton, died recently of a heart ail­

H. C. Aarnoth
H. C. Aarnoth, retired Fargo banker,
died last month. Mr. Aarnoth began
his banking career in 1901 when he
was employed as a bookkeeper at the
State Bank of Ulen, Minn. He con­
tinued in the banking business until
1928 and was executive vice president
of the Security National Bank in Val­
ley City and of the Security National
Bank in Fargo.
During his b a n k in g career, Mr.
Aarnoth assisted in organizing banks
in Twin Valley, Adams, Nekoma, Garrison, Nome, Valley City and Edgeley,
all in North Dakota.






Installs Complete
Computer System

G rou p

President: Frank Grim, cashier, Farmers
State Bank, Crosby.
Vice President: Robert Barstad, cashier,
First State Bank, Harvey.
Secretary-Treasurer: L. Donald Thorson,
vice president, First National Bank,
State Nominating Committee: G. H. Gorder, vice president, Lakeside State
Bank, New Town.


Will Operate
Woodworth Station


ORE than 550 bankers attended
the North Dakota Group meet­
ings held last month in Valley City,
Devils Lake, Williston and Mandan.
Reports indicate the meetings were
very much a success.
V. F. Hegeholz, president of the
Peoples and Enderlin State Bank of
Enderlin and president of the North
Dakota Bankers Association, head­
lined the program at each of the meet­
ings. Also on the program was John
McNair, First National Bank of Fargo,
who discussed A.I.B. Studies.
The Uniform Commercial Code was
presented by Richard Cravens of the
First National Bank, Chicago, and
North Dakota Agriculture was re­
viewed by Claud Ebling, a consultant
for the Soo Line Railroad. O. Bjornstad, regional group manager for Occi­
dental Life Insurance Company, dis­
cussed the NDBA group insurance
The following officers were elected:


Exterior work on an addition to the
Stock Growers Bank at Napoleon has
been completed. The additional space

The first complete computer system
to be installed in a North Dakota Bank
has been delivered to the First National Bank and Trust Company in
While there are other systems in
use, William F. Graves, bank presi­
dent, explains this equipment is the
first complete data processing center.
It is capable of handling the book­
keeping functions of half the banks in
North Dakota, he reports. It will be
used to handle data processing for a
number of the First National Bank’s
The equipment is leased from the
Burroughs Corporation.



Fargo Bank Appoints
The Dakota National Bank at Fargo
has announced the appointment of
Robert C. Bratager as assistant vice
president. Mr. Bratager has been affil­
iated with the First National Bank of



Minot and the National Bank at Nor­
folk, Neb.
A. M. Eriksmoen, president of the
bank, also announced the promotion of
Kenneth M. Hargmen and John R.
White to the post of assistant cashier.

Cooperstown Bank Builds
Leslie E. Herzog, president of The
First State Bank of Cooperstown, an­
nounced recently that construction has
begun on their new building. It is be­
ing constructed on property adjacent
to the present building.
During construction of the new
building, First State Bank is operating

in temporary headquarters
Pramhus Building.

in the

New Building at Kenmare
Work began last month on a new
building for the State Bank of Ken­
mare. Leonard Jorgenson, executive
vice president, said that the building
will be one story and basement and
will be erected on property acquired
by the bank earlier this year.

Carillon in Minot
An electronic carillon has been in­
stalled in the Union National Bank at
Minot. According to J. H. Hoeven, Jr.,



Columbus Remodels
The Columbus State Bank has com­
pleted a remodeling project. Accord­
ing to H. L. Thorndal, Jr., cashier, the
project included new windows, doors,
and drapes plus a complete renovation
of the interior.
rad has been approved. The bank will
be called the Pondera Bank of Mon­
Original incorporators are Charles
Rubie, Richard Rubie, Jay McLeod
and Adolph Erickson. Mr. Erickson,
president of the Farmers and Stockmen’s Bank in Valier, will be the
president and managing officer of the
new bank.

M o n ta n a


vice president, the chimes will ring on
the quarter hour during the day and
will also play songs at various times
of the day.
The carillon was installed with the
hope of providing institution identity
for the Union National Bank.


H u n kers Hi sen ss f 'nitorin
C om m ercia l Code in W o rk sh o p s
HE Montana Bankers Association
T last
month sponsored a series of
workshops on secured transactions
under the uniform commercial code.
Meetings were held in Great Falls,
Glasgow, Miles City, Livingston and
Bankers were addressed by an out­
standing group of speakers. The pro­
gram included remarks by Richard
C. Timmerman, chairman of the Mon­
tana Bankers Association’s Uniform
Commercial Code Committee.
Wesley W. Wertz, counsel for the
M.B.A., reviewed for bankers article
9 of the Code which deals with se­
cured transactions. Wyoming bankers’
experience with secured transactions
under the Code were presented by
A. Edward Kendig, executive vice
president of the State Bank of Wheatland, Wyo.
The three men joined in a panel
discussion on the various forms which
have been proposed for use in Mon­
tana. Bob Wallace, secretary of the
Montana Bankers Association, reports
a most successful series of meetings.

Both the First National Bank in
Bozeman and the First Bank of Rolla
are affiliated with the First Bank
Stock Corporation.

Darrel V. Olson has accepted the
position of installment loan manager
with the bank of Columbia Falls, ac­
cording to J. G. Edmiston, president.
Mr. Olson was formerly cashier of the
First State Bank of Mineral County
at Superior.

Harlem Bank Appoints
Milton D. Byrd
Milton D. Byrd, 61, died recently
after an illness of several months. Mr.
Byrd was cashier and director of the
Citizens State Bank in Hamilton.

New Bank at Conrad
Word has been received that the
charter for a new state bank in Con-

The Security State Bank at Harlem
has announced the appointment of
Charles W. Gray as vice president and
managing officer. Mr. Gray was for­
merly assistant cashier in the farm
and ranch department of the Great
Falls National Bank.
Jay Parks is president of the Harlem

Eureka Bank Opens

C ircu ia r iia n h

The First National Bank of Eureka
officially opened for business recent­
ly. This is Eureka’s first bank since
1926. The bank is housed in a new
building just completed.
Officers of the new bank are: G.
Jerry Shaw, president; Whitney Smith,
vice president; and Hugh Polensky,

Rejoins Sidney Bank

Bozeman Bank Appoints
The First National Bank of Boze­
man has announced the appointment
of Arnold L. Braaten as executive
vice president and director of the
bank. Mr. Braaten most recently
served as president of the First Bank
of Rolla, North Dakota.

Moves to Columbia Falls

SCALE MODEL of new bank building for
the First National Bank, Glendive, Mon­
tana. The structure will be one story,
circular in design, with provisions for a
second story. It is hoped that construc­
tion will start early next spring.

Charles Evanson has rejoined the
Sidney National Bank as assistant
cashier, according to O. L. Anderson,
Mr. Evanson originally joined the
bank in 1951 and left in 1959 to man­
age the local Ben Franklin store. He
will now be associated with the bank’s
loan department.
Northwestern Banker, November, 1964
Federal Reserve Bank of St. Louis


C o lo ra d o -W y o m iiig N ew s

Advanced at North Glenn
Don M. Whiteman, who joined The
First National Bank of North Glenn
as a vice president in September, has
been named executive vice president
and a director of that bank by the
board of directors.
Eugene H. Adams, president of The
First of North Glenn as well as The
First National Bank of Denver, also
announced the appointment of Eugene
H. Edler as assistant cashier.
Richard C. Meckley, who has been
executive vice president of The First
of North Glenn bank, will resume du­
ties as vice president in the corre­
spondent banking department of The
First of Denver. He will be co-ordi­
nator for The First of Denver’s three
affiliate banks—The First of North

Continent, said purchase of the bank
was for investment only and there
would be no change in operation of
the bank.
Hugh E. Smith, president, and
Frank Luoma and D. R. Hayes, vice
presidents, will continue in their pres­
ent capacities.
Mr. Babcock also owns controlling
interest in First National Bank of Walsenburg, First National of Center and
Citizens State Bank of Keensburg.

Glenn, The First National Bank of
Bear Valley and The First National
Bank of Southglenn, which is in the
process of final organization. Mr.
Meckley will remain as vice president
and director of The First of North
More than 4,000 persons attended
open house to inspect the North Glenn
bank’s new building.

Sells Bank Interest
Ray A. Babcock, Denver, a Colorado
and Nebraska banker for more than
51 years, announced recently that he
had sold his controlling interest in
the Commercial Bank of Leadville to
Mid-Continent Financial Corporation
of Omaha.
R. D. Marcotte, president of Mid-

Ownership Transferred
The Colorado National Bank, Den­
ver, has announced that it has trans­
ferred ownership of its remodeled and
expanded six-story banking house to
a newly organized, wholly owned sub­
sidiary. The subsidiary has placed
$7,000,000 of secured 25-year notes
with private institutions through
Goldman, Sachs & Company, New
York, and Boettcher & Company, and
Bosworth Sullivan & Company, both
of Denver, at 4% per cent.

Changes in Cheyenne Bank
R. J. Hofmann announced recently
that he will retire from his post as
president of the American National
Bank in Cheyenne. He will be suc­
ceeded by Ellsworth A. Handy who

★ ♦
Prospecting dush
Mining Fir tsSte- dp
OreSe&rr ias F.-rnan *
.For Me’ 4s lr .teas' »






ihington Wire

Steel O utp ut

v v x u rs Ne
B u s i n e s s a n d F tn ^


n . m i

Weekly Report From
Street Journal’s
»tal Bureau

Work Wide


A me Cthe
night a* * 'oral Mo
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oded Auto Wot r* xcontr. *
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Mictoigan. tllinnis, i>«nncampaign



lightly on l% o inooels. QuoUw
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also rox. .
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about I f c .

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paid taf ’M *8fwy, vW p*r* w«r ik« eu *he New York and American stock cxBymmparteg tb»ro wiia
pttninçmf&x ¡¡tuéoihee n
>aj>«v horw » y the , Included‘ are mies apn*" thu
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SEJC's own proposed rule. The SEC
Amai xmxvys hae» becom« on« ot tfc« proposal would give the agency its
tavurtt« tools ot m
ortwn pmspecton» wh» : m-st direot ^sciplmary authority over

P ic tu re d a re Jo h n D ie d rich o f o ur C re d it a n d S e c u ri­
ties D e p a rtm e n t a n d A rt B rid g e w a te r o f o u r C o rre ­
sp o n d e n t D e p a rtm e n t. C e n tra l's o th e r C o rre s p o n d e n t
men m issed the p ic tu re , th e y 're out o f to w n , se rvin g
y o u r b a n k in g n e e d s.

If you have questions a b o u t buying or sell­
ing securities, Central's investment experts
have the answers. W h a te ve r your problem
w ith a n y facet of b anking o p e ra tio n , Cen­
tra l's specialists are yours, to advise and
assist you in any possible w ay.




Northwestern Banker, November, 1964





Member: F.D.I.C.
Federal Reserve System
Federal Reserve Bank of St. Louis








ST.. D E N V E R . C O L O R A D O

G O .



Colorado News


ita nkEntertains Foot bull Fans

b e tw e e n A ir F o r c e a n d N o t r e D a m e. R I G H T — B ill
asst, to p res, o f h ost b a n k , an d M yron K arsten, p res.,
S a v . B k ., A n d r e w , I o w a . M r. K a r s te n t r a v e le d th e
d is t a n c e to a tt e n d th e p a r t y . F o llo w in g th e g a m e , th e
e n te r t a in e d th e g ro u p at a s o c ia l h ou r a n d b a n q u e t in

N E A R L Y 800 B A N K E R S a n d th e ir w iv e s a tt e n d e d C en tra l
B k . & T r. C o.’ s f o o t b a l l p a r t y la s t m o n th . S h o w n fr o m l e f t :
A r t Bridgewater, v .p . in ch a r g e o f h o s t’ s c o r r e s p o n d e n t d e p a r t­
m e n t ; M rs. Bridgewater, a n d Paul Rice, pres., F ir s t N a tl. B k .,
L o v e la n d . C E N T E R — F a lc o n S ta d iu m w h e r e g a m e w a s p la y e d

has been executive vice president since
September 1.
Mr. Hofmann has been president of
the bank since 1947 and a member of
its board of directors since 1937. He
is only the second president of the
American National in its history.
Mr. Handy was a vice president of
the Harris Trust Company of Chicago
prior to joining the American National

Taylor, Arthur B. Dalgarno and Rich­
ard Pfister, all of Lusk.
The bank is operating in temporary


A n drew
g r e a te s t
C en tra l
D e n v e r.

quarters at 2123 Garfield while a new
building is being constructed at 21st
and Garfield.



Riverton Opens
New Facilities
New drive-in, walk-up facilities at
the First National Bank in Riverton
were opened recently, according to
Harmon H. Watt, president. The fa­
cilities are located on the bank’s park­
ing lot, provide two drive-in windows
and two walk-up windows.

Retires at American National
R. J. Hofmann, president of the
American National Bank, Cheyenne,
resigned as president of the American
National on November 1 because of
poor health and “a desire to take
things a little easier.” He will con­
tinue to serve on the board of directors
of the bank.
Ellsworth A. Handy, executive vice
president of the bank, has been elected
to succeed Mr. Hofmann as president.
Mr. Hofmann, a native of Cheyenne,
has been president of American Na­
tional Bank since 1947, and a board
member since 1937. He is only the
second man to serve as president of
the 45-year-old hank.

Officers of New Bank Named
Officers of the newly-organized Uni­
versity National Bank of Laramie are
Tom P. Peck, president, and Vern
Smith, cashier.
Directors are Mr. Peck, Tom H.
Barratt, E. G. Jackson and H. T. Per­
son, all of Laramie, and William A.
Federal Reserve Bank of St. Louis

Ultra-modern facilities and friendly, personal helpfulness, backed
by 104 years of experience, serve correspondent bank needs
quickly and efficiently.

h e


ir s t



a t io n a l




a n k


o f


e n v e r


N orthw estern

Banker, N o v e m b e r,

19 6 4

Expensive Equipment?

ADD IT U P ...
Equipment Cost
Special Facilities
Competent Staff
Even your power bill goes u p .

B U T ...
.. .without this drastic increase in capital
expense.. . your bank can enjoy the advan­
tages of the most modern electronic systems
for your processing needs by using our
computer center. Your work will be done
with m axim um speed at m inim um cost.

about how this service can benefit your bank, call
our Correspondent Departm ent collect, 4 0 2 - 3 4 1 - 8 7 6 5

A FTE R A LI____
It doesn’t cost anything to look.

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

N orthw estern


N ovem ber,
Federal Reserve Bank of St. Louis

19 64



He is succeeded as president of the
bank by his daughter, Mrs. Marie C.
Wolden, who has held the position of
cashier in the bank since 1926.
Mrs. Frances V. Lawhead of North
Platte was elected to the board of di­
rectors. P. M. La Velle, also of North
Platte, was elected chairman.

e b r a s k a




Exec. V.P.


Calmar McCune


M. W . Rutledge Retires
M. W. (Mick) Rutledge, who began
his career in banking with the Citi­
zens State Bank of Clearwater in June,
1922, retired as cashier of the Bank of
Orchard at the close of business Sep­
tember 30. He had been associated
with the Bank of Orchard since 1951.
His retirement was brought about by
failing health.

90th Year Observed
An open house was recently held in
observance of the Schuyler State
Bank’s 90th year in business. Dr.
David W. Flory, Harlingen, Tex., a
stockholder and director, was present
for the event.

Cords to Wahoo

State of Nebraska. He purchased con­
trolling interest from R. H. Perry,
An active banker since 1934, Mr.
Misko first announced his intention of
becoming associated with the Hold­
rege bank while still serving as state
banking director. After leaving the
latter post he helped organize the City
National Bank in Lincoln, serving as
its board chairman until moving to

Insurance Approved
The board of directors of the Fed­
eral Deposit Insurance Corporation
recently approved insurance for Ban­
ner County Bank, Harrisburg. Presi­
dent of the bank is Lee Shirk. The
bank has capital accounts totaling
$ 100,000.

Wahoo’s First National Bank has
added William M. Cords to its staff.
Mr. Cords, who was born at Yutan, is
a graduate of the University of Ne­
braska. He will be a teller and will
do contact work with area farmers.

The First National Bank of Springview opened for business in its new
building recently.

New Anniversary Building

Assistant Cashier

The board of directors of the Farm­
ers State Bank of Elkhorn has ap­
proved the architect’s plans for new
banking quarters to be built in Elkhorn. The new structure, which will
feature expanded facilities, increased
parking and drive-in facilities, was be­
gun shortly thereafter. Bank officials
hope to be in the new quarters in
March when the bank will observe its
golden anniversary.

New Bank Building

John R. Bergquist, formerly of
Scottsbluff, has assumed his duties as
assistant cashier at Farmers State
Bank in Carroll.

John D. Young
John D. Young, 50, assistant cashier
at the First National Bank, Fremont,
died unexpectedly September 23 at a
Valentine hospital.

Opening of the new drive-in, walkin facility of the Fremont National
Bank was scheduled by bank officials
for November 3. T. J. Milliken, vice
president, said the detached facility
will provide bank patrons with two
drive-in windows, a walk-in area, and
parking for 12 cars.
Architect for the installation was
Gordon H. Jenkins, Fremont.

Misko Heads Bank
Ralph Misko recently took over op­
eration of the First Security Bank at
Holdrege, a year following his resig­
nation as director of banking for the
Federal Reserve Bank of St. Louis

Bellevue Remodeling
Charles Reed, president of the Bank
of Bellevue, announced plans last
month for a major remodeling of the
bank building. A complete new ex­
terior, extensive interior alterations
and an addition are in the plans.
McDonald Construction Company of
Omaha is in charge of the project,
which is scheduled for completion by
next March.
The exterior will feature arches
with white marble chips and solid
panels of black marble chips, with
glass inserts of solar grey. The in­
terior will be designed around a cir­
cular teller section.

Starts New Building
W. E. (Bill) Young, president of the
Cozad State Bank at Cozad, has an­
nounced that construction of a new
building on property north of the
Cozad post office was to start No­
vember 1. The modern building will
incorporate a drive-up window and
parking space for customers. Comple­
tion date is set for the spring of 1965.
Paulsen Building and Supply, Cozad,
is general contractor.

Businessmen’ s Dinner
Old and New

Fremont Drive-In Opens

Calmar McCune, 88, Polk’s first bank­
er, died recently at Jextun, Colo. The
oldest alumnus of the Stromsburg
High School, he had moved to Jextun
approximately 40 years ago.

Axtell’s oldest building, owned by
the Farmers and Merchants Bank
there, will be removed from the scene
in order to make room for additional
offices and conference rooms for the
adjacent bank building. Construction
on the new one-story addition is not
scheduled to begin until next spring.

Charles L. Cooper
Charles LeRoy Cooper, 93, Wallace,
president of the Farmers State Bank
in Wallace, died there recently. He
had been a resident of the Wallace
area since moving there from Arcadia
in 1909. He had served as president
of the bank since 1918.

The First National Bank of Tekamah recently held its 12th Annual
Business and Professional Men’s Din­
ner. The meeting was well attended
and the program went over in fine
shape, according to H. J. Wragge, bank

School Savings Decline
At the close of the 1963-64 school
year, pupils of 16,679 schools including
both public and parochial institutions,
had a total of $206,612,188 on deposit in
bank school savings accounts, accord­
ing to D. James Pritchard, chairman
of the Committee on Savings Research
of The American Bankers Associa­
tion’s Savings Division.
N orthw estern

B an ker,

Novem ber,



lira neh Mtankiny Ms 3Main
Tupie at Group 3Meetiaps

tions of particular interest to Nebras­
ka bankers. Each man was given 7
minutes to present his particular top­
Following is a summary of these


Associate Editor

IMITED branch banking for the
state of Nebraska proved to be
the central topic at the 1964 Nebraska
group meetings held October 6-12.
A panel of four Nebraska bankers—
two speaking for the issue and two
against — presented both sides of the
question at each of the meetings.
N. T. Tiemann, president of the Com­
mercial State Bank at Wausa and pres­
ident of the Nebraska Bankers Asso­
ciation, introduced the panel at the
meetings and reviewed some of the
background on the subject. He pointed
out that the issue was originally stud­
ied by the Association’s Bank Service
Study Committee this past spring. On
the basis of this committee’s report to
the annual convention in May, it was
decided to take certain steps in pre­
senting this issue to the Association
A complete copy of the report was
mailed to all members in June and a
“pro and con” panel presentation of
the issue was planned for the fall
group meetings. The day following
the last two group meetings, ballots
were mailed to all members asking
them to indicate whether they are for
or opposed to limited branch banking
in Nebraska.
Ballots were mailed back directly to
the auditing firm of Peat, Marwick,
Mitchell and Company, Omaha. Re­
sults of this vote were 316 opposed to
limited branch banking, 80 in favor of
it, and one ballot not marked, out of
397 ballots returned of the 425 mailed
A special summary of the panel’s
presentations on the branch banking
issue will be found on page 78 of this
Mr. Tiemann also reported on the


various activities of the Association.
He announced plans for a school to be
held at the University of Nebraska
next March. This will be for begin­
ning bankers being groomed to be of­
ficers. Enrollment will be limited.
The Ag Committee, according to Mr.
Tiemann, sponsored a booth at the re­
cent state corn picking contest and
plans to have a booth at the state fair
next summer. He also announced the
committee’s plans to hold two credit
conferences . . . one in the western
part of the state and the other in the
east. These will be particularly for
vocational agriculture instructors of
the state to better acquaint them with
the manner in which banking can
meet the credit needs of today’s mod­
ern farmer.
The Association has prepared a new
b o o k le t entitled “Y ou r N ebrask a
Banks.” It will be especially helpful
to bankers who are requested to talk
before community groups. According
to Mr. Tiemann, the information in the
booklet can be used verbatim in telling
groups about banking. These are avail­
able through the Association office.
Mr. Tiemann also reiterated the po­
sition of the Nebraska Bankers Asso­
ciation on constitutional Amendment
Six which will be voted on in the No­
vember elections. The Association fa­
vors an increase in the usury rate, but
does not want the legislature to set
the general interest rate as this amend­
ment would allow them to do. Thus,
the Association is against passage of
Amendment Six.
Another popular feature on the
group meeting program was the “7
Minute Men” panel. In this presenta­
tion, members of the N.B.A. Corre­
spondent Bank Club discussed ques-

Howard M. Johnson, vice president,
Omaha National Bank — This broad
field was limited to a brief discussion
of automated check processing. It was
suggested that even the smallest banks
could utilize this process in future
years through cooperative regional
centers and telephone hook-ups. Mr.
Johnson urged that before new book­
keeping facilities are purchased, a
close look be given to the computer
“Installment Credit”





John Foley, vice president, Packers

National Bank, Omaha — Because of
the current instability of the install­
ment credit situation in Nebraska, Mr.
Foley first urged bankers to discuss
whatever approach they want to take
with their own legal counsel. He
noted that in his own bank installment
credit is handled directly with the Y
customer as much as possible rather
than simply buying the paper from
retail outlets. This has enabled them
to come into direct contact with more
potential customers and sell more
bank services in addition to the in­
stallment loan.
“Wages and Hours”
Robert Brown, assistant vice presi­
dent, First National Bank of Omaha—
The current wage and hour law was
reviewed briefly and the new equal
pay for women situation was dis­
cussed. Mr. Brown pointed out that
this shouldn’t cause a major problem
except that records should be kept to
substantiate the fact that equal work
is not being done in cases where pay
is not equal. He urged bankers to




F R O M L E F T : H ow ard Nielson, r e p r e s e n ta t iv e , U . S. N a tio n a l,
O m a h a ; George R ainbolt, a .v .p ., F ir s t N a tio n a l, M c C o o k ; Jack
K illa ck ey, v .p ., F ir s t N a tio n a l, St. J o s e p h ; J ay Bordewick,
a .v .p .; U . S. N a tio n a l, O m a h a ; H enry Byers, p res., B a n k e r s S erv N o r t h w e s t e r n B a n k e r , N ovem ber, 1964
Federal Reserve Bank of St. Louis

ic e C o., D es M o in e s ; Carl Bloom, v .p ., F ir s t N a tio n a l, O m a h a ;
Charles E. M oyer, p res., B a n k o f W o o d R iv e r ; H erb Echtermeyer, se n io r v .p ., O m ah a N a tio n a l, a n d D w igh t L . Clements,
ca s h ie r , A m e r ic a n E x c h a n g e , E lm w o o d , n e w p res, o f G rou p 1.



E veryd ay S p ecials!
For our Correspondent Bank Friends
(a t y o u r F in a n cia l S u p e rm a rk et)



Loan Participation
Complete Securities
Handling Facilities
Trust Services

□ Transit and Collection
□ Operational Services
□ Credit Information

First National Bank of Omaha
M e m b e r F ed eral D e p o s it In su ran ce C o rp ora tion
N orthw estern
Federal Reserve Bank of St. Louis

B an ker,

N ovem ber,

19 64


V I S I T I N G — F r e q u e n t p a s ttim e at th e m e e tin g s . L E F T :
Douglas, a .v .p ., O m ah a N a tio n a l a n d W . D. Stroud, e x e c ,
B a n k o f H y a n n is . C E N T E R : Leo Drieger, p re s., S id n e y
t io n a l; Cecil M eans, v .p ., S t o c k Y a r d s N a tio n a l, O m a h a ;

obtain a copy of the wage and hour
study and that officials be asked for
advice before a problem arises.
“Bank Investments”
William Smith, vice president of the

First National Bank and Trust Com­
pany, Lincoln—Because a greater per­
centage of assets today are coming
from savings, less liquidity is required
in a bank’s investment program. Mr.
Smith urged a program of asset man­
agement with the first step being a
compilation of deposit, loan and in­
vestment data from the past five years.
With this information, average loan
demands and deposits can be seen and
used as basis for investments. It is
possible that funds can be diverted
from governments to higher return
Jack Goodwin, assistant vice presi­

dent, National Bank of Commerce in
Lincoln — Mr. Goodwin emphasized
that bankers cannot become compla­
cent simply because they have fine
facilities, offer many services and can
take care of any customer needs. They
must tell their customers and pros­
pects about their services. He urged

v .p .,
N a­

that all media be utilized in telling
the bank story and that representa­
tives of those media be used in helping
plan advertising. “And encourage em­
ployees to be public relations minded,”
he said.
“Credit Unions”
K erm it Hansen, vice president,

United States National Bank of Omaha
—The tremendous growth of credit
unions over the past 10 years was first
cited by Mr. Anderson. He noted that
most credit unions today are con­
nected to industry. However, future
growth will come in the establishment
of rural credit unions right in our
areas. He urged that bankers insist
these groups pay equitable taxes, that
they be forced to provide better man­
agement and be subject to the same
audits as banks.
Cecil Means, vice president of the

Live Stock National Bank in Omaha—
Cattle numbers will continue to in­
crease, according to Mr. Means, but
human population will catch up some­
time in the future. The current trend
to fewer and larger farming and live­
stock operations will continue in the

S E E N A T T H E G R O U P M E E T IN G S . F r o m L E F T : Charles
Brown, d ir e c to r , T h e S t a m fo r d B a n k ; M erv A egerter, a .v .p .,
F ir s t N a tio n a l, O m a h a ; W . J. Chaloupka, v .p ., F ir s t N a tio n a l,
H a s tin g s , a n d v .p ., G rou p 4 ; W arren M cClym ont, e x e c , v .p .,
N orthw estern

B anker,

Novem ber,
Federal Reserve Bank of St. Louis

196 4

Don Shuck, S id n e y N a tio n a l. R I G H T :
Joe H u ckfeld t, v .p .,
G e r in g N a tio n a l, a n d n e w s e c y .-tr e a s ., G rou p 6, a n d Jim Morris,
v .p ., F ir s t N a tio n a l, D e n v e r.

years ahead. He said that major in­
puts into future farming operations
will be management and capital. Coun­
try bankers were urged to hire com­
petent help to serve the farm cus­
tomer and to call on correspondent
banks for advice as well as help on
Mr. Means then moderated a brief
question and answer period when
bankers were given the opportunity to
seek the advice of a panel of livestock
men from the Nebraska Bankers Asso­
ciation Correspondent Bank Club.
The NBA Correspondent Bank Club
hosted bankers and their wives for
the social hour at each of the six meet­
Following are new officers of each
of the six groups:
Group One

Dwight L. Clements, cashier, Ameri­
can Exchange Bank, Elmwood, presi­
dent; Harold R. Deitemeyer, president,
First National Bank & Trust, Beatrice,
vice president, and Wilbur H. Baack,
vice president, National Bank of Com­
merce, Lincoln, secretary-treasurer.
Group Two

L. L. Loerch, senior vice president,

F ir s t S ta te , L o o m is , a n d p res., G rou p 4 ; George Rainbolt, a.v .p .,
F ir s t N a tio n a l, M c C o o k , se c.-tre a s., G rou p 4 ; A . Thuman, p res.,
S ta te B a n k o f T r e n to n , a n d Burnham Y ates, pres., F ir s t N a ­
tio n a l B a n k & T r u st, L in c o ln .


Your Capital City Correspondent
The experienced field team from N.B.C. is backed up
by a complete Correspondent Bank Department staff
in Lincoln ready to serve you on all banking matters
when you telephone or come in.
Top left to right A1 Jorgensen / Rex Miller
Bottom left to right Tom Waldo / Winton Buckley




L IN C O L N . N E B R A S K A
Federal Reserve Bank of St. Louis

N orthw estern

B an ker,

Novem ber,

196 4

G R O U P 2 O F F IC E R S ( l e f t ) : H . B. Loseke, v .p ., F ir s t N a tl.
B & T , C olu m b u s, s e c y -tr e a s .; H arold Qualsett, e x e c .v .p . & cash .,
F a rm e rs & M e r c h a n ts B a n k , S c h u y le r , v i c e p res, a n d L . L.
Loerch, sr. v .p . & cash ., 1st N a tl., T e k a m a h , p r e sid e n t. G ROU P
3 O F F IC E R S ( r i g h t ) : Leo Schellpeper, a.c., D e L a y F ir s t N a tl.,

N o r f o lk , s e c r e t a r y ; Edw in W . Tauer, p res., C r o ft o n S ta te , p r e s ­
id e n t ; Eldon G. Freudenburg, e x e c , v .p ., 1st N a tl., W e s t P o in t ,
v ic e p r e sid e n t, a n d M ilford W eaver, a u d ito r , N a tl. B a n k o f
N o r f o lk , tre a su re r.

First National Bank, Tekamah, presi­
dent; Harold Qualsett, executive vice
president, F a rm ers and Merchants
Bank, Schuyler, vice president, and
Plarvey B. Loseke, vice president,
First National Bank & Trust, Colum­
bus, secretary-treasurer.


Group Three

Group Six

Edwin W. Tauer, president, Crofton
State Bank, president; Eldon G. Freud­
enburg, executive vice president, First
National Bank of West Point, vice
president; Leo Schellpeper, assistant
cashier, DeLay First National Bank,
Norfolk, secretary, and Milford Weav­
er, auditor, National Bank of Norfolk,

George B. Acker, vice president,
Scottsbluff National Bank, president;
E. K. Yanney, cashier, First State
Bank, Lodgepole, vice president, and
Joe Huckfeldt, vice president, Gering
National Bank, secretary-treasurer.
More than 1,500 bankers attended
the six group meetings.—End.

Chemical Bank Promotions

Group Four

Our years o f correspondent
experience and specialized

cashier, Security State Bank, Ansley,
president; Dale E. Walkenhorst, vice
president, First National Bank, North
Platte, vice president, and Wayne R.
McKinney, executive vice president,
Platte Valley State Bank, Kearney,

Warren McClymont, executive vice
president and cashier, First State
Bank, Loomis, president; W. J. Chaloupka, vice president, First National
Bank, Hastings, vice president, and
George Rainbolt, assistant vice presi­
dent, First National Bank, McCook,
Group Five

E. C. Varney, vice president and

Chemical Bank New York Trust
Company has advanced three officers
of its personal trust department at
277 Park Avenue, New York, it was
announced by Chairman Harold H.
Helm. W illia m J. Fimbel, former
trust officer, is named personal trust
officer. Hugh J. Hanna, assistant sec­
retary, becomes assistant vice presi­
dent, and Henry J. Heinsohn is pro­
moted from assistant trust officer to
trust officer.

know ledge o f livestock
m ark eting and financing can



w ork for you.



1301 Farnam
The only bank in the yards.

Omaha, Nebraska



S O U T H ST. J O S E P H , M O .

N orthw estern

F. D. I. C.

Banker, N o v e m b e r,
Federal Reserve Bank of St. Louis


Snap Apart Forms
Continuous Forms
Bank Forms
Office Supplies
Office Furniture
Servicing the Mid-States Area
Since 1858



A sincere desire to help you with banking prob­
lems in every way possible is characteristic of
Commerce Trust men like Dick Niedling. One
out of every ten banks in America calls on Com­
merce Trust for the best in correspondent service.
Federal Reserve Bank of St. Louis

D ick N ied lin g
Special Representative

(o m m e r c e Trust (o m p a n y
K a n s a s C ity’s O ld est a n d L a rg e st B a n k
M e m b e r Federal D eposit Insurance C orporation
N orthw estern

B an ker, N o v e m b e r.

19 64


ant vice president and Victor
Hoelting to assistant cashier.

Omaha News

Mr. Sibert, formerly of Valentine,
joined the bank staff March 1 as as­
sistant to Vice President Cecil Means.
Before joining
t h e b a n k , he
served as secre­
tary and manager
of the Sandhills
Cattle Association
at Valentine for
10 years. A native
of Red Cloud, he
w as
from the Univer­
sity of Nebraska


ENRY E. EEY, Nebraska director

of banking, reports that applica­
tion has been made for a state bank
charter for a proposed bank to be lo­
cated in Westwood Mall Center. Pro­
posed officers for the bank, to be known
as Westwood Bank of Omaha, are Mil­
lard R. Seldin, president, and Paul D.
Dunlap, vice president. Proposed cap­
ital structures includes $200,000 com­
mon capital, $200,000 surplus and
$100,000 undivided profit.
* * *
Anthony Breci has been appointed
assistant cashier of the newly-formed
Security National Bank of Omaha. He
was formerly assistant comptroller
for the Casualty Insurance Companies
within the Central National Insurance
Group in Omaha.
* * *
Dean Vogel, executive vice presi­
dent of The United States National
Bank of Omaha, was one of 12 charter

recipients of the
U n iv e r s ity
Omaha’s T o w e r
Award presented
in mid-September
by Dr. Milo Bail,
president of the
The new award
viduals who have
d . v o g e l
c o n tr ib u te d in
various ways to
the success of the municipal univer­
sity. It confers recognition second
only to the school’s honorary degrees.
Mr. Vogel, the only banker so hon­
ored, has served on the university’s
Board of Regents and was president
of the regents for two years.
* * *
The Stock Yards National Bank of
South Omaha recently announced the
promotion of Frank J. Sibert to assist­

Murticipal and Corporate Bonds
Listed Stocks
Unlisted and Local Stocks

C H IL E S & C O M P A N Y
Member, Midwest Stock Exchange

412 Farm Credit Building

1321 P Street

Phone 346-6677

Phone 432-3324

Ernst & Bieck Building

999 East 6th Street

. j.

sib e r t


17 i n _ 0

N orthw estern

Banker, N o v e m b e r,

19 64


B.S. degree in animal husbandry.
Following his graduation, he was as­
sistant Dawson county extension agent
and was assistant Nebraska State 4-H
Club leader.
Mr. Hoelting joined the bank in
1957 and was in charge of the safe­
keeping and payroll department. In
April, he was elected to the Board of
Governors of the Omaha chapter of
the American Institute of Banking.
Fifty-seven N o r t h w e s t Montana
ranchers were treated to a breakfast
last month by the Stock Yards Na­
tional Bank at the Omaha Livestock
The ranchers shipped six thousand
feeder cattle and calves, which were
then sold at auction at the Omaha
Stockyards. After the breakfast, the
cattlemen went on a feedlot tour.
* * *

NABAC Tax Session
A two-day seminar for bankers on
Federal Taxation is to be conducted in
Chicago by NABAC, The Association
for Bank Audit, Control and Opera­
tion. The session is scheduled for
November 23-24 at the Edgewater
Beach Hotel, NABAC President Henry
J. Rohlf, vice president, Morgan Guar­
anty Trust Company of New York has
The seminar will be tailored to the
needs of bankers not thoroughly fa­
miliar with tax return preparation.
Discussion is to include the various
ways tax regulations may be inter­
preted, and the courses open to banks
for keeping tax payments to a mini­
mum within the legal requirements.
Attendance will be limited by avail­
able facilities and the number of par­
ticipants that can be properly accom­


Federal Reserve Bank of St. Louis


M eet Our
C orrespondent
Bank Representatives
. . . serving N ebraska
and N o rth ern Kansas
Y ou’ll be seeing a lot of Jack H. Babcock and John T.
Marcell in Nebraska and Kansas.
Jack has been assigned the territory north of the Platte
River, from the Missouri to the western Panhandle.
John will call on correspondent banks south of the Platte
River in Nebraska and in Northern Kansas.
Both men have extensive backgrounds with The Omaha
National Bank. Jack Babcock recently received his 25-year
service watch. John Marcell joined the bank 10 years ago.
Both are backed by the full resources and facilities of our
Correspondent Bank Division. Let them know how they
can be of service!

The Omaha National Bank
Nebraska’s Largest Bank
M em ber Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis

N orthw estern

B an ker, N o v e m b e r,

19 6 4


administrative vice president. Mr. Se­
ward has been associated with Bank­
er Life Nebraska for 24 years. Effec­
tive November 1, Donald C. Morris
assumed the duties of comptroller for
Bankers Life Nebraska. Mr. Morris
has been associated with the national­
ly known accounting firm of Arthur
Andersen, in Chicago, for the past 15
* * *

HEARING on the application for
a new state bank to be known as
The Lincoln Bank and to be located at
2037 South 17th Street, was held in the
East Senate Lounge of the Capitol
building October 20. Heading the
group applying for the new charter is
Howard Hall, Lincoln businessman.
Mr. Hall would be president of The
Lincoln Bank, and Fred W. Morgan
would be vice president and cashier.
Total capital structure of $350,000
would be divided with $200,000 com­
mon capital, $100,000 surplus and
$50,000 undivided profits.
A host of opposing statements to the
application were heard by Henry Ley,
director of the Nebraska department
of banking. The most recently char­
tered bank in Lincoln is Lincoln Bank
South, and counsel for this bank chal­
lenged the right of the applicants to
use of the name selected because it is
so similar to Lincoln Bank South.
Gateway Bank counsel opposed the
charter, stating there is need for au­
thority for existing banks to branch
into outlying parts of the city as the
need for bank service increases, and
said such legislation would be pro­
posed to the 1965 legislature.





Counsel for several other smaller
banks petitioned Mr. Ley to delay any
decision until it could be seen what
kind of progress is made by the newlychartered Lincoln Bank South and the
City National Bank, which opened in
recent weeks in downtown Lincoln.
These smaller banks fee 1 the city is
being over-built with banks.
Lincoln Bank South is owned by
executive officers of the National Bank
of Commerce. First National Bank &
Trust officials entered their protest

in a letter to Mr. Ley.
Attorneys for the proposed bank
said there are 100 businesses in the
area selected for the bank and that
78 of these had signed petitions en­
dorsing the application in the few
days prior to the hearing. A total of
626 names appeared on the petition.
No action will be taken until a tran­
script is completed and further in­
vestigation is completed by the bank­
ing department.
* * *
Bankers Life Nebraska has an­
nounced the creation of a new exec­
utive office in the company. Effective
immediately, Harry P. Seward will
assume the duties of the office of



Lincoln’s newest bank has asked the
Board of Education to alter a money
depository policy in effect without sub­
stantial change since 1937.
City National Bank, in a letter to
the board, requested that it be made
a part of the present rotation program
in the placement of district funds.
The account presently is rotated be­
tween the First National Bank &
Trust Company (about 9 months) and
National Bank of Commerce (about 4
months). No action has been taken
to date.
* * *

New Savings System
In St. Louis Bank
James P. Hickok, chairman of the
board of First National Bank in St.
Louis, has announced the bank plans
to modernize its savings accounting
system by the use of computer con­
trolled teller machines.
The new equipment which will be
installed at savings teller windows in
.January, 1965, will process the daily
transaction activity in the bank’s 40,000 savings accounts.
The system, which will be the first
of its kind to be installed in Missouri,
will place the teller machines “on­
line” ; that is, link them directly to a
1440 computer, manufactured by IBM.


Makes ¡1 much easier for you to convert your accounts into buying their own checks
Ask our salesman about this plan.

N orthw estern B a n k e r , N o v e m b e r ,
Federal Reserve Bank of St. Louis

19 64


Bankers with plans use the

Professional and experienced Mortgage Loan
consu ltation...residential properties —investm ent
properties —commercial properties




S T r u s t Co mpany of Lincoln
Federal Reserve Bank of St. Louis

N o rth w estern

B anker,

Novem ber,



Nebraska News



O BE or not to be a branch bank­
ing state was voted on by Nebras­
ka bankers last month after they had
an opportunity to hear fellow bankers
speak for and against a limited branch
banking proposal at their group meet­
ings. Ten days after the close of the
last meeting their ballots were counted
with these results—316 opposed to lim­
ited branch banking, 80 favored lim­
ited branch banking, one ballot was
not market. A total of 425 member
banks received ballots.
Speaking for limited branch bank­
ing at the six group meetings were:
Morris F. Miller, president, The Oma­
ha National; Glenn Yaussi, president,
National Bank of Commerce, Lincoln;
Burnham Yates, president, First Na­
tional Bank and Trust, Lincoln; B. M.
DeLay, president, DeLay First Nation­
al, Norfolk; H. D. Kosman, president,
Scottsbluff National; S. N. Wolbach,
president, First National, Grand Is­
land; E. B. Cosgriff, chairman, City
National, Hastings, and Harold R. Deit­
em eye r, president, First National
Bank & Trust, Beatrice.
Speaking against the proposal were:
Phil Giltner, executive vice president,
First National, Omaha; Frank W. Pivonka, vice president, First State,
Lodgepole; W. W. Marshall, Jr., ex­
ecutive vice president, Commercial
National Bank & Trust, Grand Island;
M. R. Morgan, president, First Nation­
al, Elwood; C. J. Schneider, president,
Plattsmouth State; W. F. Wenke, pres­
ident, Pender State; Harold E. Roe,
president, Bank of Bennington, and

Edward D. Brodkey, president, Ames
Plaza Bank, Omaha.
Here are summaries of the points
made by each side:

banking industry than newly-char­
tered banks with their higher per unit

For Limited Branching

The community banker has helped
develop his city or town and is closely
tied to it, whereas a branch manager
has as his assigned role from a non­
resident employer the maximizing of
deposits and profits first and foremost.
Nebraska b an k er s already voted
down holding companies and branch­
ing is the same thing under another
name. “Limited” branching sounds
good to start with, but experience has
proved that where any move like this
gets started, it expands, and in Ne­
braska only a handful of banks stand
to benefit, while more than 400 would
be affected adversely.
Branch banking will destroy the
unit banking system. The public is
currently being served by this success­
ful system and individual efforts by
unit bankers have benefited their com­
munities and the state as well. There
is no evidence of need for branching
to improve services offered the pub­
The five largest banks in Omaha
control 87.3 per cent of the deposits
there. If they get the other 12.7 per
cent it wouldn’t change the ability to
loan picture. The three banks in Oma­
ha having 80 per cent of the deposits
have a far greater concentration of
deposits than found in city banks
where there is branching, so no need
exists to branch. Comparable growth
is found in Lincoln.

P r o p o n e n t s favor only l imi te d
branching permission for Omaha and
Lincoln, respecting predetermined dis­
tances for existing banking facilities.
Two changes taking place to alter the
growth and success that independent
Nebraska banks have enjoyed for
years are: First, lack of growth in re­
cent years in correspondent bank bal­
ances while loans and overlines from
correspondent banks around the state
increased by about 50 per cent, thus
making it necessary to rely on growth
in metropolitan bank deposits to sup­
port agricultural loan demand. Dur­
ing the same six year period, some
big downtown banks have had a drop
in the latter deposits while suburban
banks were thriving and growing. Sec­
ond, branch banking, according to
some noted authorities, is a vital fac­
tor in attracting industry to a state.
Deposits have grown in all the
downtown banks (Omaha and Lin­
coln), but at a slower rate than in the
suburban banks. An increase to 4 per
cent in the savings rate has helped at­
tract funds but this has not been
enough. Nebraska is 50th among all
the states in deposit growth from
1950 to 1960.
Competition from all sources is forc­
ing banks to follow customers to the
suburbs and branching would solve
this much more economically for the

H IG H L I G H T IN G th e N e b r a s k a G ro u p M e e t in g s w e r e th ese
tw o p a n els w h ic h a p p e a r e d b e fo r e e a ch o f th e m e e tin g s . L E F T :
B r a n c h B a n k in g P a n e l. B a c k r o w : M orris M iller, p r e sid e n t,
O m ah a N a tio n a l, a n d H . D. Kosm an, p re s., S c o t ts b lu ff N a tio n a l.
F r o n t : N . T. Tiemann, p res. C o m m e rcia l S ta te o f W a u s a a n d
p res., N e b r a s k a B a n k e r s A s s n .; Phil Giltner, ex. v .p ., F ir s t N a ­
tio n a l o f O m a h a ; F. W . P ivonka, v .p ., F ir s t S ta te o f L o d g e p o le ,
a n d H enry L ey, d ir e c t o r o f b a n k in g , L in c o ln . R IG H T : S e v e n
N orthw estern

B anker,

N ovem ber,
Federal Reserve Bank of St. Louis


Against Limited Branching

M in u te M e n fr o m N B A C o r r e s p o n d e n t B a n k C lu b. B a c k : John
B. Foley, v .p ., P a c k e r s N a tio n a l, O m a h a ; How ard Johnson, v .p .,
O m ah a N a tio n a l, a n d W illia m C. Smith, v .p ., F ir s t N a tio n a l
B a n k & T ru st, L in c o ln . F r o n t : K erm it Hansen, v .p ., TJ. S. N a ­
t io n a l, O m a h a ; Cecil M eans, v .p ., S t o c k Y a r d s N a tio n a l, O m a h a ;
Jack Goodwin, a .v .p ., N a tio n a l B a n k o f C om m erce, L in c o ln , and
Robert Brown, a .v .p ., F ir s t N a tio n a l, O m ah a.


Working with local b a n k e rs...

helps cities Attract Industry
Your city may have all the essential resources attractive to industry —labor,
water, power, raw materials, etc. Recognizing the value of balancing its
economy with desirable industry, your community also may decide to pur­
chase and improve land for industrial sites or build plants using long term
financing —municipal bonds.
The Robert E. Schweser Co. is one of the very few investment banking firms
in this area exclusively engaged in the underwriting and sale of municipal
bonds. In Ja n u a ry o f th is year, 56 p e r cent o f the d o lla r volume and 42 p e r cent
o fa llth e issues o f m u n icip a l bonds in N eb ra ska were ha nd led by the Sch w eser Co.
We offer you and your city this experienced S C H W E S E R


L. L. Lawrence

Patrick H. Rensch
Vice President



Frank E. Williams
Executive V. P.

Harry E. Coe

S E R V I C E Team

William March
Vice President

Robert E. Roh

2 0 8 South 19th S tre e t
Omaha, N ebraska
A lbuquerque, New Mexico Ventura, California
Federal Reserve Bank of St. Louis

N orthw estern

B an ker, N o v e m b e r,

19 6 4


to got
next gear's
Heel t rap


. . . call on Bankers Trust. Whether it’s financing calf
crops or furnishing extra capital for herd expansion and
improvement, it will be our pleasure to serve you.
Whatever your excess money needs, put your trust
in Bankers Trust.

Cy Kirk

N orthw estern


Novem ber,
Federal Reserve Bank of St. Louis


Homer Jensen

Gordon Dodge



# ««• «

C o n v e n tio n

Attracts R ecord
.7.0.7// Registration
B y D A V ID L E N D T

Associate Editor

N E W O F F IC E R S — Robert J. Tank ( l e f t ) ,
p r e s., C e n tra l T & S , E ld r id g e , v .p . & tr e a s.,
a n d E . L . Ballou, p res., S e c u r it y T& S ,
S to r m L a k e , I B A pres.

ITH a total attendance of 5,058
persons, the 78th annual conven­
tion of the Iowa Bankers Association
last month achieved another new rec­
ord, surpassing the previous mark of
4,931, set the previous year, by 127
The presence of various agricultural,
governmental, banking and entertain­
ment personalities drew large num­
bers of Association members to each
of the various se s s io n s conducted
throughout the four-day convention.
The customary Agricultural Break­
fast, held Monday morning, saw an
overflow crowd which spilled from the
Hotel Fort Des Moines ballroom onto
the mezzanine floor where additional
tables and chairs were placed and to
where the proceedings were piped via
The meeting, conducted by W. L.
Baggs, chairman of the IBA agricul­
tural committee, featured six speakers
on topics ranging from the comparison
of frogs and finance to forestry and
its implications in Iowa.
Earl V. Slife, Sr., president of Farm­
ers State Bank, Hawarden, led off the
breakfast program with a discussion
of the Farmers Agricultural Credit
Corporation and the role it plays in


helping Iowa bankers in the area of
farm credit needs.
It was in the early 1930’s, he re­
called, that the IBA moved to appoint
a special committee on banking and
agricultural credit facilities and that,
in the ensuing years, the committee,
with the help of the Federal Inter­
mediate Credit Bank, Omaha, set up
a number of Agricultural Credit Cor­
porations on a county basis.
Jack A. MacNair, 37-year-old Jetmore, Kan., cattleman-farmer, followed
with a warning for Iowa bankers to
watch conditions in the plains area as
they consider their plans in financing
farm operations in the near future.
The young Kansan, featured in The
Wall Street Journal just prior to the
convention, operates a 1,440-acre farm
which produced a reported $141,713
in sales last year.
He likened the future agricultural
picture to the method by which frogs
may be boiled by gradually raising
the temperature of the water in which
they are placed. Unless Iowa’s bank­
ers take some temperature readings
along the way, he said, they may, like
the frogs, be boiled before they real­
ize it.
“A few temperature readings may

A P P E A R I N G on th e p r o g r a m w e r e : W . L . B aggs, I B A a g com m itt e e ch m n . a n d v .p . & cash ., H a n c o c k C o u n ty N a tl., G a r n e r ;
Tho Hon. Bourke B. Hickenlooper a n d The Hon. Jack M iller,
Federal Reserve Bank of St. Louis

tell you when it’s wise to jump,” he
He warned lenders to beware the
“optimistic cattleman” who, after a
disastrous season followed by im­
proved crops, is ready to try his hand
at cattle feeding once again.
In dealing with the rare, but occa­
sional, “optimistic cattleman,” Mr.
MacNair suggested that bankers re­
mind him of the fact that today there
are 35 per cent more feeders than
there were six years ago, that there
were $18 and $19 fat cattle last year,
and that, if he buys cattle at an auc­
tion attended by 500 persons, 499 of
them think he’s paying too much for
his animals.
Remind the cattleman that he must
aim at making back what he lost last
year as well as earning a profit for the
current year, Mr. MacNair suggested.
And, if the optimistic cattleman re­
mains that way, he should buy fewer,
lighter animals, the s p eake r sug­
gested, and “he should buy for a prof­
it or not at all.”
Hon. Bourke B. Hickenlooper, United
States Senator from Iowa, who was
scheduled to follow Mr. MacNair on
the breakfast program, was unable to
attend the meeting inasmuch as he

I o w a ’s tw o U n ite d S ta te s S e n a to r s ; A lbe rt B. Sabin, M .D ., dev e lo p e r o f o ra l p o lio v a c c in e , C in c in n a ti, O h io, a n d M iss E v a
Adam s, d ir e c t o r o f th e U . S. M in t, W a s h in g t o n , D . C.
N orthw estern


Novem ber,

19 64


Iowa News

L E F T — Charles H . W a lsh ( l e f t ) , p res, o f F a rm e rs & M e r c h a n ts
S a v in g s in B u r lin g to n , r e c e iv e s g a v e l in r e c o g n it io n o f his
s e r v ic e as I B A p r e s id e n t fr o m W e s H . Swiler, p res., B u r lin g ­
to n B & T B I G H T — R obert J. Tank, n e w v .p . & tre a s. o f th e

had been summoned to Washington,
D. C., by President Lyndon Johnson,
to confer on world-wide developments.
He did, however, make a later ap­
pearance before the convention and
the remarks he offered at that time
are reported elsewhere in this article.
Hon. Jack M iller, Iowa’s other
United States Senator, took the po­
dium to denounce the present admin­
istration for the farmers’ cost-price
squeeze which, he said, “has con­
tinued throughout the past three
During 1961, 1962 and 1963, he said,
500,000 operators have been squeezed

I B A a n d p r e s., C e n tra l T& S , E ld r id g e ; M rs. T ank; M rs. Ballou,
a n d E. L . Ballou, n e w p res, o f th e I B A a n d p res., S e c u r it y T& S ,
S to r m L a k e .

off their farms and the number of
farms in the country has decreased
by 475,000—14,000 hi Iowa.
Parity, which had been at 81 per
cent in December, 1960, is at 75 today
“and fell to 74 during two months of
this year,” he said.
Although the farmer has shared in
the country’s recent economic growth,
he asserted that agriculture has not
shared fairly in the growth as com­
pared with other sectors of the econ­
Regarding passage of the recent
Meat Import bill, Senator Miller said,
“ I regret that it is not effective legis­

lation” inasmuch as it fails to cut
back imports to the 6 V2 per cent orig­
inally proposed.
In looking ahead to January when
Congress will again convene, Senator
Miller predicted that there will be
feed grain legislation regardless of
who is “in” following the general elec­
tion. He further predicted that such
legislation would feature more cross­
compliance and that it would be vol­
untary in fact as well as in name.
Insofar as he is concerned, the Sen­
ator added, across-the-board subsidies
will be discontinued when subsidies
to other segments of the economy are

L E F T — Leo R. Gruber, p res., D r o v e r s N a tl., C h ic a g o , a n d Robert
J. Tank, p res., C e n tra l T & S , E ld r id g e a n d n e w I B A v .p . a n d
tr e a s. C E N T E R — F . E . Breitenstein, a .c., S ta te C e n tra l S a v in g s ,

K e o k u k , a n d E. H . Jorgensen, v .p ., C it y N a tl. C lin ton . R I G H T
— Bernard D. M iller, a .v .p ., D r o v e r s N a tl., C h ic a g o , a n d Rudy
R. Schroeder, p res., I o w a C o u n ty S a v in g s , M a r e n g o .

L E F T — Burr Sweezey, p res., I n d ia n a B a n k e r s A s s n .; The Hon.
Charles H alleck, m e m b e r, U . S. H o u se o f R e p r e s e n ta t iv e s fr o m
I n d ia n a , an d Charles H . W alsh , p re s., F a rm e rs & M e r c h a n ts
S a v in g s , B u r lin g to n , a n d n o w im m e d ia te p a st p re s, o f I o w a

B a n k e r s A ssn . C E N T E R — Ernie H ayes, d ir., H e n r y C o u n ty S a v ­
in g s, M t. P le a s a n t, a n d How ard H . Beermann, a .v .p ., L iv e S to c k
N a tl., C h ica g o . R I G H T — Robert Turner, d ir., 1st N a tl, o f C ou n ­
c il B lu ffs.

N orthw estern

B anker,

N ovem ber,
Federal Reserve Bank of St. Louis

19 64


N early a century
of service to the
b a n k s and public
of Iowa

Federal Reserve Bank of St. Louis







N orthw estern


Novem ber,


Iowa News
discontinued. “ But don’t ask my Iowa
farmers to be the first to go,” he said.
Foreign aid, he said, will continue,
but may be reduced.
Dr. Carl H. Stoltenberg, head of the
Department of Forestry, Iowa State
University, Ames, told those present
that, unless greater reliance can be
placed upon private interests to con­
serve the nation’s forests, the respon­
sibility will be assumed by govern­
mental organizations.
He noted that, in the next fiscal
year, the Federal government will in­
vest a total of $350,000,000 in the na­
tion’s forestry programs.

He claimed that investments in tim­
ber result in a unique situation where­
by several products can be harvested
Although the value of all the prod­
ucts cannot be accurately established,
their value is real, he said. He cited
such advantages as increased deer,
grouse and quail populations, reduced
soil erosion and siltation and increased
recreation advantages as products har­
vested in addition to the wood prod­
ucts which may be derived from for­
He suggested that there is a need for
wiser use of capital insofar as for­

estry investments are concerned and
that more assistance in reviewing in­
vestment possibilities, and in evaluat­
ing those possibilities, is required.
Brenton C. Leavitt, assistant direc­
tor of the Division of Examinations of
the Federal Reserve System, Wash­
ington, D. C., discussed “Agricultural
Lending and Responsible Bank Super­
“The smaller the bank,” he said,
“the larger the percentage of loans for
agricultural purposes.”
He noted that the trend is a logical
one, inasmuch as the smaller banks
are normally located in the smaller,

L E F T — L lo yd M alstrom , m g r., D a v e n p o r t, a n d K eith Jung,
m g r., D e s M o in e s , b o th w ith C u m m ins C h ic a g o C o r p .; C. J.
M ertz, v .p . & cash ., H a v e s v ille S a v in g s , a n d R oy A . Nelson,
p res., M t . V e r n o n B & T . R I G H T — W m . Heim erm an, sr. v .p .,

N o r t h w e s te r n N a tl., S io u x P a lls , S. D. ; Joe Gronstal, pres.,
C a rro ll C o u n ty S t a t e ; A . T . Donhowe. d ir., C en tra l N a tl. B & T ,
D es M o in e s , a n d Oliver A . Hansen, v .p ., L ib e r t y T& S , D u ran t.

L E F T — J. E . K in g , pres., P e o p le s N a tl., A l b i a ; Gerald F itzger­
ald, b o n d d e p t., 1st N a tl., C h ic a g o , a n d Irw in Mosher, pres.,
W e s t L i b e r t y S ta te . R I G H T — A lden B agnall, r e t ir e d sr. v .p .

fr o m L iv e S t o c k N a tl., C h ic a g o ; Robert E. H am ilton, pres, o f
L iv e S t o c k N a tl., C h ic a g o , a n d Herb Ollenburg. p res., H a n c o c k
C o u n ty N a tl., G a rn er.

L E F T — Robert G. Ziemer, v .p ., N o r t h w e s te r n N a tio n a l, M in ­
n e a p o lis , a n d Frank Snider, v .p ., C la y C o u n ty N a tl., S p e n ce r.
C E N T E R — Charles Singer, D es M o in e s , I o w a m g r. f o r M o s le r
S a fe C o .; M iss Sandra H aber, te lle r a t B e t t e n d o r f B & T , on e o f
th re e fin a lists in M o s le r S a f e ’ s a n n u a l n a t io n w id e c o n te s t to

s e le c t “ M iss D r iv e -I n T e lle r ,” a n d Robert T. Knapp, e x e c . v.p .
& ca sh ., B e t t e n d o r f B & T . R I G H T — Dr. N athan Pusey, pres.,
H a r v a r d U n iv e r s it y , d is c u s s in g o ld fr ie n d s in his n a t iv e c it y
o f C o u n cil B lu ffs w ith Lew Ross, churn., C o u n cil B lu ffs S a v in g s.

N orthw estern

B anker,

N ovem ber,
Federal Reserve Bank of St. Louis

19 64


Vice President
President— Flexsteel Ind., Inc.
President— Interstate Finance Corp.
Retired Director—
John Deere & Co.
First Vice-President
President— Morrison Bros. Co.
President— Holscher Apothecaries
President— Interstate Power Co.
President— Klauer Mfg. Co.
j . b r u c e M cD o n a l d
Director and Secretary
A. Y . McDonald Mfg. Co.
Vice-President & Trust Officer
Vice-President &
Senior Trust Officer
The Fischer Companies
President— Dubuque Packing Co.

Chairman— Flexsteel Ind., Inc.
Special Consultant
Special Consultant

First Vice-President
V ice-President
V ice-President

American Trust & Savings Bank
October 1, 1 9 6 4

Cash .................................................................................$ 6,8 3 6 ,2 3 1 .6 4


S. Governm ent Securities.......... ......
1 0,669,685.90
S. Public H ousing A u th ority Bonds.........

Municipal B o n d s ................
3,3 1 5 ,4 9 0 .0 7
Federal Reserve Bank Stock..............................
8 2 ,500.00
Loans ......................................................
2 0 ,1 6 2 ,0 8 9 .5 4
O verdrafts ..................... ...........................................
Bank Prem ises— (Including Furniture
and F ixtu res) ........................ ................................

834 ,6 5 7 .5 0

C ustom ers’ Liability on L etters o f Credit. ..


Other A sse ts ...................

3 ,126.50
$ 4 3 ,1 0 1 ,9 0 1 .1 3

Capital .......... .............................. $ 500 ,0 0 0 .0 0
Surplus ............................... ......... 2 ,2 5 0 ,0 0 0 .0 0
Undivided P r o fits ...................

$ 3,3 5 4 ,6 7 3 .0 0

120, 000.00

Reserve for Savings In terest...........
Liabilities under L etters o f Credit


Other Liabilities ............................

38 ,9 9 1 ,2 5 9 .8 0

Deposits - ..... .............................................
Senior Trust Officer

$43,10 1 ,9 0 1 .1 3

american trust
an d sa v in g s b a n k
Federal Reserve Bank of St. Louis

N orthw estern


N ovem ker,

19 64


Iowa News

rural communities of the nation. But,
he suggested, lenders in such banks
must distinguish between the justi­
fiable and unjustifiable loan in light
of the present concern regarding de­
terioration of credit.
He said that past investments in
land and improved machinery have
made it possible for the nation’s farm­
ers to produce at top efficiency, caus­
ing food prices to drop and making
food a bargain for the consumer.
The only fly in the ointment, Mr.
Leavitt pointed out, is the fact that the
farmer has not shared in the bargain
but has, indeed, become the victim of
his own efficiency. And, because his
costs have risen while his income has
not, he has difficulty retiring his debts
which, in turn, makes extension of
loans to him difficult.
Intermediate term loans, he said,
are stretching out to the point where
seven-year agreements are not uncom­
mon. Contrary to the opinion of some

bankers, he said, a survey of examin­
ers shows that they do not view such
loans with a “jaundiced eye” if the
loan is being repaid as agreed. “ Such
loans,” he said, “are sound.”
Examiners, however, are critical of
small loans to marginal borrowers
whose income does not permit them
to reduce their debt and whose small,
inefficient operations yield smaller and
smaller net incomes, he said.
An insidious factor in the problem
lies in the fact that changes in agri­
culture today are rapid and far-reach­
ing and that the marginal, but good,
loan of today may become the bad
loan of tomorrow.
He said that it is the responsibility
of Iowa’s bankers to make available
the capital required by Iowa’s farmers
“and you’ve been doing an outstand­
ing job of it.”
The key to future farm loans lies,
he said, in the difficult-to-appraise
“managerial ability” of the borrower

and in the necessity for careful serv­
icing of loans made.
W. E. Glennon, president of the
American Feed Manufacturers Asso­
ciation, Inc., Chicago, closed the break­
fast meeting with a discussion of the
joint roles of bankers and feed man­
ufacturers in “Working Together for
a Better Animal Agriculture.”
In response to the claim that agri­
culture is a “dying industry,” Mr.
Glennon noted that the only agricul­
tural decline has been in the number
of persons producing the nation’s food
and fibre.
And, in the future, he said, fewer
will produce even more.
He pictured tomorrow’s farmer as a
college-trained businessman in “grey
flannel overalls” and suggested that
Mr. MacNair, the earlier speaker, was
a fine example of the type of agricul­
tural leader the future would demand.
Mo n da y afternoon’s session was
opened by President Charles E. Walsh

L E F T — Clair Schroeder, v .p ., C it y N a tl. B & T , K a n s a s C it y ;
Louis C. Jalving, a .v .p ., N a tl. B a n k o f D e tr o it, a n d S. G-. Barnard, v .p . & cash ., B a n k e r s T r u st, D es M o in e s . B I G H T — M a x

Kiernan, v .p ., A lt o n S a v in g s , a n d
S t o c k N a tl., S io u x C ity ,

L E F T — F r o n t r o w : M rs. John M angold, C e d a r
Olan Tegeler; M r. Teleger, p res., S ta te B a n k o f
B a c k r o w : A . J. H orvei, ca sh ., C o m m e rcia l T & S ,
F. Forbes Olberg, v .p ., John M angold, v .p ., a n d

a .c., a ll th ree w ith M e r c h a n ts N a tl., C ed a r B a p id s . B I G H T —
Dennis D ay , fa m o u s T V a n d r a d io p e r fo r m e r , sig n s a u to g ra p h s
f o r b a n k e rs w iv e s .

N orthw estern

Banker, N o v e m b e r,
Federal Reserve Bank of St. Louis

19 64

B a p id s ; M rs.
W o r t h in g t o n .
C h arles C it y ;
Peter Bailey,

Stan Evans, 1st v .p ., L iv e


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P r e s id e n t

V ice P r e s id e n t

A s s t . V ic e P r e s id e n t

A s s t . V ic e P r e s id e n t

N orthw estern
Federal Reserve Bank of St. Louis

B an ker, N o v e m b e r,



Iowa News

and was addressed by two guest speak­
President Walsh, in his president’s
annual report, reiterated the IBA’s
opposition to branch banking and said
that he did not “know of any contem­
plated change of that attitude of our
State Association” toward any attempt
to supplant the independent bank in
Iowa “by this other banking theory.”
He also mentioned the passing of
George J. Schaller, former chairman

of the board of the Citizens First
National Bank. Storm Lake, and Fred
J. Figge, former president of the Ossian State Bank, Ossian, and the Iowa
State Bank, Calmar. Mr. Schaller was
IBA president in 1927-1928 and Mr.
Figge in 1932-1933.
Hon. Joseph W. Barr, chairman of
the Federal Deposit Insurance Corpo­
ration, Washington, D. C., said that
American prosperity and security de­
pend, in large part, upon continued

L E F T — Dale Auld, p re s., L a P o r t e C it y S t a t e ; M rs. Cannon;
Tom C. Cannon, v .p ., C o m m e rce T r u st, K a n s a s C it y ; M rs. K irk ,
a n d Cy K irk , v .p ., B a n k e r s T r u st, D es M o in e s . R I G H T — Mrs.
Frow ick; L a rry Frow ick, v .p ., C o n tin e n ta l I llin o is N a tl. B & T ,

development of e m e r g i n g nations
through the activities of the World
Bank and its affiliates.
“The international credit structure
represents one of the few islands of
order which make international coop­
eration possible today,” he said. Main­
tenance of the World Bank and the
continued support rendered by the




(Turn to page 92, please)

C h ic a g o ; Edw ard K . Johnstone, Sr., p res., K e o k u k S a v in g s
B & T ; M rs. Johnstone; B ill M iller, sr. v .p . & d ir., a n d Richard
C. Rastetter, v .p ,, b o th w ith C o n tin e n ta l I llin o is N a tl. B & T ,
C h ica g o .




L E F T — T w o se n io r m em b e rs o f th e b a n k in g f r a t e r n it y w ith
lo n g r e co rd s o f a tt e n d a n c e at I o w a B a n k e r s c o n v e n t io n g e t t o ­
g e th e r at b r e a k fa s t — Charles C. K uning, c o n su lta n t, A m e r ic a n
N a tl. B & T , C h ic a g o , an d J. W . Edge, p res., F a rm e rs T& S , S p en-

cer. R I G H T — G-. W . B ill Sherman, a .v .p ., C ity N a tl. B & T , K a n ­
sas C it y ; Russell S. H ow ard, p res., M a h a s k a S ta te , O sk a lo o sa ,
a n d H . C lifton W hitem an, v .p ., M o r g a n G u a ra n ty T r u st, N ew
Y ork.




L E F T — Arthur E. Lindquist, Jr., v .p ., A m e r ic a n N a tl. B & T ,
C h ic a g o , and John H . Lessenhop, p res., W a lk e r S ta te . R I G H T —
O fficers o f I o w a C lu b o f th e G ra d u a te S c h o o l o f B a n k in g a t
M a d is o n a r e : John M . Shanda, v .p . & ca sh ., H o m e S ta te , J effe rN orthw estern


N ovem ber,
Federal Reserve Bank of St. Louis


son, im m e d ia te p a st p r e s .; H om er Jensen, a .v .p ., B a n k e r s T ru st,
D es M o in e s , p r e s id e n t ; H arlan A . Pose, cash ., 1st N a tl., N e w
H a m p to n , v ic e p r e sid e n t, a n d Don H eineking, p res., S e c u r it y
S ta te , H u b b a r d , s e c r e ta r y -tr e a s u r e r .




George Spence examines a prize Charoláis af the 1963 International Live Stock Exposition ¡n Chicago.

This is G e o rge Spence —
yo u r agricultural representative in Chicago
M ore co rrectly, G.eorge Spence works

in a carpeted loan meeting office or

out of C h ic a g o

at the International Live Stock Exp o ­

on b e h a lf of our

correspondent banks who seek sound

sition in C h icag o .

ad vice on agricultural and cattle loans.

G e o rg e 's p ractical farm-ranch loan

G e o r g e ow ns ranch p ro p e rty in

e x p e rie n c e is y o u rs fo r the asking

central N ebraska and a feed-lot in

through your Am erican N atio n al c o r­

O m aha. He's a down to earth c a ttle ­

respondent o fficer. You'll find his ser­

man— banker, and the mud on his boots

vices are grand champion quality.

proves it. G e o rg e is equally at home

W e serve thousands of people . . . but we serve them one at a time

A m e r ic a n

N a tio n a l B a n k

and Trust Company of Chlcag o/LaSalle at Washington
Member Federal Deposit Insurance Corporation
FRanklln 2-9200
N orthw estern
Federal Reserve Bank of St. Louis

B an ker,

N ovem ber,



Iowa News

M ore Pictures from the lotea f Convention

L E F T — Richard A . Robinson, d ir., a n d R. K . M cG ee, p res., b o th
w ith C la rk e C o u n ty S ta te , O s c e o la ; John Fitzgibbon, v .p . &
ca sh ., a n d Gerald 6 . Nelson, v .p ., b o th w ith I o w a -B e s M o in e s
N a tl. C E N T E R — Conrad E. Aronson, a .v .p ., T o y N a tl., S io u x

C it y , a n d C. Ream Daughrity, v .p ., I o w a -D es M o in e s N a tl., D es
M o in e s . R I G H T — L . F. Seiko, p res., F ir s t S ta te , T a b o r , and
Herb Echtermeyer, sr. v .p ., T h e O m ah a N a tl., O m ah a.


L E F T — Gilbert Tootle, sr., v .p ., A m e r ic a n N a tl., S t. J o se p h ,
M o .; Jerry M cG lynn, b o n d d e p t., 1st N a tl., St. D o u is ; Don
Folks, v .p ., A m e r ic a n N a tl., St. J o s e p h , a n d Ted J. Ketelsen,
a .c., L ib e r t y T& S , D u r a n t. R I G H T — Don Rhoades, m g r. o f ins.

d ep t., C o m m e rcia l T & S , S to rm L a k e ; Doris Reid, D es M o in e s
reg. fid e lit y & s u r e ty u n d e r w r ite r , H a w k e y e -S e c u r it y , a n d Paul
A . V a n H elten, a.c. C o r w ith S ta te.




L E F T — Bob K n o tt, p res., I o w a S ta m p & M a r k in g C o., D es
M o in e s ; Bernard Duben, cash ., I o w a S ta te S a v in g s , C re stón , a n d
h is cou sin . Dean Duben, e x e c , v .p ., 1st N a tl., D a v e n p o r t. R I G H T

— Robert Zimmer, p res., 1st N a tl., M a s o n C it y ; George M itchell,
m e m b e r, F e d e r a l R e s e r v e B o a r d o f G o v e r n o r s , W a s h in g t o n , D .
C., a n d Charles J. Scanlon, p res., F e d e r a l R e s e r v e B a n k , C h ica g o .



L E F T — M rs. V ic von M eding, C h ic a g o ; E . H . Spetman, Jr.,
C o u n c il B lu ffs S a v in g s ; M rs. Spetman, a n d V ic von M eding,
v .p ., 1st N a tl.. C h ica g o . R I G H T — J. F . K ennedy, p res., 1st N a tl.,
N orthw estern


Novem ber,
Federal Reserve Bank of St. Louis


N e w H a m p t o n ; Robert Beaupre a n d Richard O. W eyrauch,
a .v .p .’ s, 1st N a tl, o f M in n e a p o lis ; Joe M enges, p res., A lt a V is ta
S ta te B a n k , a n d M erle H ove, fa r m rep r., C itiz e n s N a tl., B o o n e .

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B anks and B an kers Division
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N orthw estern
Federal Reserve Bank of St. Louis

Banker, N o v em b er,



Iowa News

(Continued from page 88)
United States must be realized, he
said, “for our security and prosperity
are at stake.
“ It would be sheer blindness,” he
said, “to ignore in our foreign rela­
tions one of the great strengths which
the United States has as the free
world’s leader — the strength which
comes from our great wealth of capi­
Reno Odlin, elected 1964-1965 presi­
dent of the American Bankers Asso­

ciation at the ABA convention in Mi­
ami, Fla., a few days following the
IBA convention, was unable to attend
the Iowa convention, as scheduled,
due to the death of his wife.
The Monday afternoon session drew
to a close with an explanatory pres­
entation by J. M. Henson, manager of
banking and finance, data processing
division, International Business Ma­
chines Corporation, Chicago. He ex­
hibited and explained the workings
of the new IBM System/360.
Hon. Paul A. Volcker, deputy under
secretary of the U. S. Treasury for
monetary affairs, Washington, D. C.,

headed a list of four speakers on Tues- y
day morning’s convention session.
He said that although “fiscal policy
is no royal road to prosperity.” a more
active employment of such policy may ,
offer an area in which future economic
problems may find at least part of
their solutions.
Mr. Volcker noted that, at present,
funds can flow over international <
boundaries in response to fluctuating
interest rates.
And, although the tax cut measure
enlarged the budgetary deficit, he said, . /
the nation’s gold stock last summer
was at a higher point than it had at-

L E F T — Jack Row, a re a m g r., a n d Glenn In gle, sta te d ir., b o th
w ith U . S. S a v in g s B o n d s d iv is io n , D es M o in e s ; M . L . A b rahamson, tr e a su re r o f s ta te o f I o w a ; H . H . Byers, p res., B a n k e r s
S e r v ic e C o m p a n y , D es M o in e s , a n d C. C. Fritcher, v .p ., S e c u r it y

T& S , S to rm L a k e . R I G H T — E . W . M aser, p res., 1st N a tl.,
L e M a r s ; M a x Kiernan, v .p . & cash ., A lt o n S a v in g s , an d David
D. Baer, a .c., N o r th e r n T r u st, C h ica g o .


L E F T — R on Fairs, sr. v .p ., L a S a lle N a tl., C h ic a g o ; C. Dean
Trent, v .p ., A lt o o n a S t a t e ; Joe Snyder, a .v .p ., M a n u fa c tu r e r s
H a n o v e r T r u st, New- Y o r k , a n d Richard H . W a yn e , v .p ., H a r r is

T & S , C h ica g o .
C E N T E R — R udy J. Swanson, p res., C itize n s
S ta te , C la rin d a . R I G H T — Stanley G. Smith, e x e c . v .p . & cash.,
R o c k R a p id s S ta te , a n d Sherman Peterson, a .v .p ., L a S a lle N a tl.


O ver



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N orthw estern

B anker,

N ovem ber,
Federal Reserve Bank of St. Louis



Iowa News

L E F T — Bill Hoffm an, re g . m g r., C e n tra l S ta te s H e a lth & L i f e ,
O m a h a ; R obert E. Puff, b r a n c h m g r. in S io u x C it y f o r th e sam e
firm , a n d Leo J. Remmes, ca sh ., C r a w fo r d C o u n ty T & S , D e n iso n .


E I G H T — W m . M . W ilco x , a.e., M e r c a n tile T ru st, S t. L o u is ;
B. F. M cGee, p res., D y e r s v ille N a tl., a n d Stanley K . Peirce,
sales m g r., H a r r is T& S , C h ica g o .

tained in the past seven years. He
described the gap in the balance of
payments as “still too large.”
Dr. Nathan M. Pusey, president of
Harvard University, Cambridge, Mass.,
and a native of Council Bluffs, de­
nounced sectional jealousy and mis­
trust in the nation as a whole and
lauded the nation’s private colleges
and universities for their roles in
breaking down barriers both within
the United States and throughout the
Sectionalism, he said, may result in
the nation’s history someday being
written in terms of sectional pressures
and he traced the origins of sectional
strife from the diversified religions of
the colonies to the split between in­
dustrial north and feudal south which
erupted in Civil War.
Jealousy and mistrust within the
nation, he said, blurs national deci­
sions and hampers the United States
in dealings far removed from domestic
Sectional pride and favoritism, he
suggested, have their place in America
and add to the nation’s life and color,
but sectionalism carried too far has a
deteriorating effect.
The nation’s institutions of higher
learning, he said, are helping to ease
the tensions created by sectional dif­
ferences by bringing together students
from all areas of the nation and, in­
deed, the world, and by sending them
back to their respective geographic
areas better trained, more understand­
ing and better understood.
He noted that approximately 500
graduates of Harvard University are
presently residing in Iowa and are
contributing greatly to Iowa’s growth
and prosperity and understanding of
other areas.
Hon. Charles A. Halleck, member of
the United States House of Repre­
sentatives from the State of Indiana,
Washington, D. C., told the convention
that, in his opinion, the tax cut meas­
ure was only justifiably approved after
Federal Reserve Bank of St. Louis

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N orthw estern

Banker, N o v e m b e r,



Iowa News

L E F T — J. Y v o Floerchinger, e x e c , v .p ., D e W it t B & T ; D ale C.
Smith, v .p ., C e n tra l N a tl. B & T , D es M o in e s , a n d L. D. Suchomel,
p res., T ip t o n S ta te . C E N T E R — Richard S. Gwinn, re g . m g r.,
D ie b o ld , I n c ., D e s M o in e s ; W illia m Buxton I I I , p res., P e o p le s

national expenditures were trimmed
by approximately $6 billion.
The Indiana half of the “Ev and
Charlie Show” and the minority lead­
er in the House of Representatives
reported that he had been summoned
the previous day by President John­
son to confer on the international sit­
He cited his affirmative response,
and that of his colleagues, as a further
example of America’s bipartisan poli­
cy. That is, he said, as it always had
been and always would be.
Hon. Bourke B. Hickenlooper, Unit­
ed States Senator from Iowa, made an
unscheduled address at Tuesday morn­
ing’s session following the President’s
emergency session which precluded
his scheduled appearance the previous
His address was in the form of a
report on the President’s conference
regarding the international develop­
ments of the preceding few days.
The atomic bomb exploded the pre­
vious week by the Chinese was of no
more significance or sophistication, he
said, than the bombs dropped over
Hiroshima and Nagasaki in 1945.
The Russians, he reported, gave the
Chinese the information necessary to
develop their present bomb, but, once
the information was provided, all fur­
ther support was withdrawn.
However, he noted, some of the
smaller Southeast Asian nations may
have such a psychological reaction to
the test that they will feel compelled
to politically ally with China through
fright and to do so immediately rather
than five years from now.
The so-called Russian-Chinese split,
he said, has never resulted in a com­
plete fracture. He said that the dis­
agreement between the two nations
seems to be one based only on pro­
cedure in the advancement of inter­
national communism.
Regarding the new leadership in
Russia, Senator Hickenlooper said the
United Nations soon will face a test
N orthw estern

B anker,

N ovem ber,
Federal Reserve Bank of St. Louis


T& S , I n d ia n o la , a n d W m . W . Summerwill, p res., I o w a S ta te
B & T , I o w a C ity . R I G H T — Ted James, e x e c , v .p ., P e o p le s S ta te ,
W in t h r o p ; R. H . Tangem an, a .c., S e c u r it y S ta te , G u tte n b e r g ,
a n d Christy Arm strong, v .p ., A m e r ic a n T & S , D u b u q u e.

Iowa News

L E F T — N eal Sands, p res., Y a l le y B & T , D es M o in e s ; R. K . M eGee, p res., C la rk e C o u n ty S ta te , O s c e o la ; C la y S t a ffo r d , ch m n .,
A m e s T & S , a n d Edward Burchette, ch m n ., Y a l le y B & T , D es

M o in e s . R I G H T — G. L . Riedel, D u b u q u e , a n d Frank Rogan, D es
M o in e s , b o t h w it h N a tio n a l C ash R e g is t e r ; E. C. B artik, p res.,
C o rw ith S ta te , a n d J. M . Burch, Jr., ch m n ., D u b u q u e B & T .

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at Old Security
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serves. Thus, he adds continually to his knowledge of your require­
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variety of basic policies, permitting protection for virtually any
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O ld S e c u rity L ife I n su r a n c e C o m p a n y

L eonard R. Dawson
Regional Service R epresentative

Ross F. F orbis
Assistant Vice President

-Old S e c u rity C a su a lty In su r a n c e C om p an y

J ames C. G arber
Assistant Vice President

J ohn J. D elaney
Assistant Vice President

These Men Can Show You THE DIFFERENCE
Federal Reserve Bank of St. Louis


F red N. Coulson, J r .
Vice President - Sales

of its courage and strength when Rus­
sia is confronted with the alternative
of paying its share of UN costs or
losing its vote, as provided by the UN
Russia, two years in arrears, owes
the body $57 million.
The suspension of the country’s
voting right, however, is not automat­
ic, Senator Hickenlooper noted. The
move to suspend Russia’s voting priv­
ileges must be approved by a vote of
the General Assembly.
If Russia refuses to pay and if the
General Assembly hasn’t the courage
to suspend Russia’s voting privileges,
it will come as a “body blow” to the
UN, he said.
Tuesday afternoon’s session was
comprised of a four-man panel discus­
sion of “Utilization of Bank Funds,”
the proceedings of which are reported
in detail in a separate feature else­
where in this issue.
Wednesday morning’s session, which
concluded the annual conclave, hosted
four additional guest speakers.
Hon. George W. Mitchell, member of
the Board of Governors of the Federal
Reserve System, Washington, D. C.,
discussed future developments in the
area of the nation’s interest rates and
reflected upon the role of interest in
recent nationwide economic develop­
Hon. Miss Eva Adams, Director of
the Mint, Washington, D. C., addressed
herself to the subject of the nation’s
coin shortage and reviewed steps
which have been taken by the U. S.
Mint to alleviate the situation.
Miss Adams predicted that the cur­
rent shortage would be ended within
a year.
Albert B. Sabin, M.D., world-re­
nowned service professor of research
pediatrics, University of Cincinnati
College of Medicine, and developer of
the famous Sabin oral vaccine, told
the convention that the most impor­
tant contribution the United States
can make to world peace is a carefully
N orthw estern


N ovem ber,

19 64


Iowa News

programmed investment in the educa­
tion of the miserable, depraved and
dissatisfied millions of persons in
Latin America and Asia.
Education, he claimed, is the key­
stone to future world peace. Igno­
rance of the needs of the less fortu­
nate, but highly-populated areas of the
world only serves to weaken the
United States and to threaten its con­
tinued prosperity, he said.
Dr. Sabin criticized United States
foreign aid dispensed since the re­

markably successful Marshall Plan of
the early post-war period. He claimed
that this country’s foreign aid has
been anything but a “howling success”
in recent years because of the fact that
aid has been dispensed with little re­
gard to the recipient nations’ ability
to manage their affairs.
“Unless our foreign aid falls upon
soil made fertile by education and
training,” he said, “it cannot be made
to grow.”
Dennis Day, the famous and dimin­
utive singing star of the Jack Benny

show, made the final guest appearance
of the convention, speaking on the
subject of “A Smile for Living” and
interspersing complementary songs
throughout his address.
He asserted that, although today’s
business pressures are great and de­
cisions are often difficult, “we’re in­
clined to be a little too serious about
it all.”
Among the selections he offered
were “MacNamara’s Band” and “When
Irish Eyes Are Smiling.”
Irish humor, he said, he particularly

L E F T — C. W . W etzeler, e x e c , v .p ., S ta te B a n k o f S p ir it L a k e ;
George M erriam , v .p . & cash ., D a lla s C o u n ty S ta te , A d e l ; E . W .
Youell, Jr., p res., S ta te B a n k o f T e r r il, a n d Thomas C. Horn,
sr. v .p ., S e c u r it y N a tl., S io u x C ity . B I G H T — Jack Rolston,

S to rm L a k e ; Clyde M cE ntire, M a r s h a llto w n , a n d L orry Lorentz,
C h ic a g o , a ll w ith D e L u x e C h eck P r in t e r s , an d Paul Rogers,
C h ic a g o , G e o rg e L a M o n te & S on .

L E F T — W a lt Schlenker, IT. S. C h e ck B o o k C o. sa lesm a n , D a v ­
e n p o r t ; R obert Stump, ca sh ., L i b e r t y v il le S a v .; M rs. Stump, a n d
Fred P faff, v .p . & sales m g r., U . S. C h e ck B o o k C o., O m ah a.
C E N T E R — H en ry C. Fordtran, e x e c , v .p ., N a tio n a l B o u le v a r d
B a n k , C h ic a g o , a n d Charles H . W alsh , p re s., F a rm e rs & M e rch -

a n ts S a v in g s , B u r lin g to n , an d n o w im m e d ia te p a s t pres, o f the
I o w a B a n k e r s A ssn . R I G H T — J. W . Lipton, Jr., e x e c , v .p ., I d a
C o u n ty S ta te B a n k , I d a G r o v e , a n d Pete Nielsen, e x e c , v .p .,
S loa n S ta te .

L E F T — A rn old Peters, p re s., J a s p e r C o u n ty S a v in g s , N e w t o n ;
G il M cE w en , a .c., H a r r is T & S , C h ic a g o ; Leo K ane, v .p ., A m e r i­
can T & S , D u b u q u e , a n d W a yn e A . M oetsch, cash ., S e c u r it y
S ta te , N e w H a m p to n . R I G H T — D ick Taylor, a .v .p ., 1st N a tl.

in S io u x C it y ; Don Ostrand, v .p ., 1st N a tl., O m a h a ; Clyde R.
Claus, asst, tr e a s., M a r in e -M id la n d T r u st C o., N e w Y o r k , and
H . H . Broadhead, Jr., v .p ., F ir s t S t o c k Y a r d s B a n k , S ou th St.
J o s e p h , M o.

N orthw estern

Banker. N o v e m b e r,
Federal Reserve Bank of St. Louis

19 64

Iowa News
enjoys because Irish stories are so
often derived from incidents which
actually occurred or which could have
There were several other outstand­
ing entertainment events during the
78th convention. On Monday evening,
Don Glasser and his orchestra played
for the supper-dance at Val Air Ball­


room. Tuesday afternoon, the ladies
were entertained by Miss Dianne
Valvo, famous wig and hair fashion
stylist of Charles of the Ritz, New
York. The United Nations Singers
completed this part of the ladies pro­
gram. That evening, all conventiongoers attended the Patti Page stage
show at KRNT Theater.— E n d .

Richard Miller, Natl. Fidelity Life, Kansas City; Dale L. Hilton, v.p., Morningside
State, Sioux City, and Charles Gustaveson, Natl. Fidelity Life, Des Moines. RIGHT—
William D. Rhoades and Paul Joyce, both with Tension Envelope Corp., at their display
that attracted so much attention. Heavy stream of water at right comes from giant
faucet above, which is suspended in mid-air. Visitors to booth finally found out that a
clear plastic pipe in center of water column returns water to top, then it cascades down
outside of plastic pipe, giving appearance of endless stream of water from faucet that
has no exterior suspension.

Jack Ludwig, mgr., Recordak Corp., Omaha; Mike Doyle, clerk of district court, Des
Moines; Raymond G. Guttau, dir., and H. F. Schmidt, v.p., both with Treynor State.
RIGHT—Harold Grimstad, pres., Security B&T, Decorah, and John Pappajohn, exec,
v.p. Guardsman Life Ins. Co., Des Moines.

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help? Call him at STate 2-5200

Salle’s correspondents. Need M ac’s
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Home O ffic e -C E D A R RAPIDS, IOWA

P r es i d en t — PAUL
Federal Reserve Bank of St. Louis




St., Chicago, Illinois 60690. Mem­
ber FDIC. Complete Trust Services.






Iowa News

Turtt A n n ou n ce i'nndUlarif fo r
tow n H a n kers P resident*//

NB / W

men have announced their can­
didacy for the office of president of
the Iowa Bankers Association. The
next election of officers will take place
at the 79th annual convention in Octo­
ber, 1965.
The two candidates are E. H. Spetman, Jr., president, Council Bluffs Sav-

E . H. S P E T M A N , J R .

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Nor th wes te rn Banker, N ovem ber,
Federal Reserve Bank of St. Louis


D. C. S M I T H

ings Bank, Council Bluffs, and Dale C.
Smith, vice president, Central National
Bank & Trust Company, Des Moines.
Mr. Spetman was a candidate for the
IB A presidency at the 78th annual con­
vention held last month, but withdrew
his nomination at that time in favor
of E. L. Ballou, president of the Secu­
rity Trust & Savings Bank, Storm
Lake, who was then elected president
for the 1964-65 year. Mr. Spetman’s
name then was resubmitted on the
floor of the convention by the chair­
man of Group Five, according to cus­
tom of recent years, as a candidate for
the presidency for election at the 79th
annual convention next year.
Mr. Spetman’s candidacy was an­
nounced at the annual meeting of
Group Five in Council Bluffs last
spring and received the endorsement
of the Pottawattamie County Bankers
Association and Group Five at that
time. He was elected president of the
Council Bluffs Savings Bank in Janu­
ary, 1963, after serving with the bank
in posts of increasing responsibility
for a number of years.
He served 42 months in the United
States Air Force, including duty in the
European Theater. In 1954, he was
named the Outstanding Young Man of
the Year in Council Bluffs. He has
served as chairman of Group Five of
the Iowa Bankers Association.
Mr. Spetman’s civic posts include the
following: Director of Council Bluffs
Chamber of Commerce; president, Sertoma Club, Council Bluffs; member,
board of directors, Jennie Edmundson H osp ita l; trea su rer, Salvation
Army; Ambassador of Ak-Sar-Ben of
Omaha; chairm an , C ou n cil Bluffs
Chamber of Commerce, and chairman,
United Fund appeal.

Mr. Smith started employment at
the Central National in 1931 as a mes­
senger, subsequently working in many
departments of the bank. He served
in the United States Air Force for \
three and one-half years during World
War II. Shortly after his return to
the bank, he was elected assistant cash­
ier in June, 1946. Later he was elected ^
assistant vice president, then vice pres­
ident. Since 1962 he has been vice
president in charge of the correspond­
ent bank department.
Mr. Smith has served on several
committees of the Iowa Bankers Asso­
ciation. He was active in the Ameri­
can Institute of Banking program for
10 years, serving as president of the
Des Moines Chapter in 1938 and as as­
sociate councilman for Iowa in 1939,
1940 and 1941.
A graduate of the Graduate School
of Banking at the University of Wis­
consin, for the past nine years he has
been on the school’s administrative
staff, spending two weeks on the cam- ^
pus with the students each year.
He is a member of the Scottish Rite,
Shrine and is a 33rd degree Mason;
also, he is treasurer and director of
the Scottish Rite Charitable and Eclu- 4
cational Foundation of Iowa. He was
on the board of directors of the Des
Moines Child Guidance Center for six
years and is on the board of the Polk \
County Chapter of the Red Cross. Cur­
rently, he is president of the execu­
tive committee and general board of
the University Christian Church in
Des Moines.— End.

K e m o d e lin g P lanned
The First National Bank of Perry
will undergo a proposed $25,000 re­
modeling project commencing shortly
after the first of the year, according
to Tom Smith, bank president.

G uest Bankers C om m en t
A dozen guest bankers recently were
airlifted to Ottumwa and, after view­
ing cows and calves on area farms,
were guests at a dinner meeting at the
Ottumwa Country Club.
A. A. Kruse, executive vice presi­
dent of First State Bank at Audubon,
expressed the consensus of the guest
bankers when he told Tenco area cat­
tlemen, “You have a product here and
you need to advertise it.” The bank­
ers observed cow herds in four area
counties — Davis, Van Buren, Appa­
noose and Monroe—the day following
their arrival at Ottumwa.


Iowa News

Top E x e c u tiv e 1'Inniges
A n nom iceli H g In te r s ! nt e
W. ERNST, president of the
• American Trust & Savings Bank
in Dubuque, has been elected chair­
man of the board of Interstate Finance
Corporation, Dubuque, and David B.
Cassat has been elected president and
general manager
in reorganization
moves caused by
the resignation of
George L. Cassat
as president.
Mr. E rn st has
been a member of
t h e In te rs ta te
board of directors
for 15 years and
has been widely
D. w . E R N S T
recogn ized as a


from some of the leading insurance
companies of the country. Mr. Riley
has been with the company since Feb­
ruary of 1946 and currently is carry­
ing heavy responsibilities in the fields
of personnel and advertising, as well
as corporate records for the parent
company and more than 40 subsidiary
companies in six states.
No changes have been made in the
operations staff, reports President


David B. Cassat, who is general man­
Interstate’s net earnings for the first
nine months of 1964 totaled $347,000,
a gain of 81 per cent over last year,
achieved on volume in excess of $47
million, an increase of nearly $6 mil­
lion over the same period a year ago.
Organized in 1925 in Dubuque, with
David B. Cassat as one of its founders,
Interstate became the state’s largest
Iowa-owned automobile finance com­
pany and, in recent years, has ex­
pended its services to include all con­
sumer loan needs and several lines of
commercial financing.

D. B . C A S S A T


W. F. G A U N I T Z

leading financial adviser to the com­
pany. He also serves many commu­
nity and commercial organizations. He
will not be active in the business as
an Interstate executive but will pre­
side at all meetings of the board and
stockholders and continue to take an
active interest in the affairs of the
company as a director and adviser.
William F. Gaunitz, Pompano Beach,
Fla., formerly president and a director
of Associates Investment Company,
South Bend, Ind., has been retained by
the company to provide a specialized
counseling service based on his expe­
rience in handling many key executive
posts in consumer finance organiza­
J. W. Riley, secretary of the com­
pany, will be assigned the additional
duties of handling the bank relations.
The company currently has lines of
credit with 63 banks and also borrows



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Oakland, Iowa
Federal Reserve Bank of St. Louis

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D ep t. 77

• 8 9 0 0 M a n c h e s t e r R d.

• St. L o u is , M o . 6 3 1 4 4

* E stim a te by fa rm credit a n a ly s ts



19 6 4


Iowa News

Des M oines News


c. g r a n g a a r d


B president of the Central National
Bank and Trust Company, Des Moines,

in a joint announcement with Arthur
Collins of Collins Tuttle and Company,
Inc., of New York City, last month
made public plans for a major new
building project in downtown Des
Moines, covering the entire frontage
of Locust Street between 5th and 6th
extending to the alley.
In announcing the plans, Mr. Gran­
gaard said, “ In accordance with the
Central National Bank’s policy of
utilizing all of its facilities and re­
sources for the expansion of Iowa
business and industry, the new Cen­
tral National Bank building at Locust
and 6th Street in downtown Des
Moines, will be leased from Collins
Tuttle and Company, Inc.
“This structure will be erected by
Collins Tuttle & Company, Inc., which
will bring several million dollars into

the community, and thereby substan­
tially stimulate our economy. Also,
the bank will thereby be able to con­
serve several million dollars that
would normally be used for construc­
tion, to use in the general lending
function of the bank, for the benefit
of the community and the state. This,
of course, being the bank’s fundamen­
tal purpose and obligation.”
The 14-story building will be con­
structed on the prepared building site
at 6th and Locust. The basement and
the first three floors of the new build­
ing will be occupied by the bank, and
the remaining floors will be available
for office space.
The present Central National Bank
building will be razed at some date
after completion of the new structure
and a combination shopping-parking
facility will be constructed. The first
floor of the parking section will be
available for store rental and there

will be four floors for tenant and pub­
lic parking.
Collins Tuttle and Company, Inc.,
built and owns several commercial
office buildings throughout the United
States, including the Borg Warner
and Union Tank Car buildings in Chi­
cago, First National Bank building
of Mobile and the Executive building
in St. Louis.
Construction will begin early next
year and the building is scheduled
for completion by July 1, 1966. It will
be glass curtain wall construction
with aluminum columns, fully air and
sound conditioned.
“Construction of this building re­
flects the bank’s confidence in the
continued growth of downtown Des
Moines,” Mr. Grangaard reported.
“The planned, staged construction pro­
gram will permit us to provide uninterrupted service for our customers
during this period of expansion.”


* =ji *
ant cashier of the Highland Park State
Bank to accept the position as cashier
of the West Des
M oin es
Bank, e ffe c t iv e
November 1. He
replaces Dale Hil­
ton, who resigned
to accept a posi­
tion w i t h t h e
Morningside State
Bank, Sioux City,
as vice president.
Mr. Kern was
j. w, k e r n
employed at the
Highland Park State Bank from 1954
to 1956 at which time he joined the
Commercial State Bank, Pocahontas.
He rejoined the Highland Pai’k State
Bank in 1958 and was elected cashier
of that institution in 1959. He is pres­
ently serving his second year as presi­
dent of the Des Moines chapter of
the American Institute of Banking.

* * *
Robert Nye, assistant cashier in the

N o r t h w e s t e r n B a n k e r , N o v e m b e r , 1964
Federal Reserve Bank of St. Louis


John W. Kern has resigned as assist­

The Des Moines chapter of the
American Institute of Banking held
its annual Fall Dinner-Dance at the
Wakonda Club last month. A social
hour was followed by a buffet dinner
and dancing to the music of Jimmy
Gale’s Quartet.
Carnival Capers was the theme for
the evening, with a “circus atmos­
phere” and “ home talent” from var­
ious banks.
Miss Jane Petrie of Bankers Trust
was chairman for the event.

A R C H I T E C T ’S drawing of new Central National B&T building.


bond department of the Iowa-Des
Moines National Bank, has resigned
to join the City National Bank of De­
troit in its investment department.








Iowa News

ttn n k evs A id C ollege F ou n d a tion
Iowa bankers have been
appointed to serve on the Iowa
Bankers Advisory Committee to assist
the Iowa College Foundation in its
efforts to broaden the concern and
strengthen the financial support of 21
non-tax supported colleges in the state.
At a meeting of the 20 men in Des
Moines last month, E. H. Spetman, Jr.,
president of the Council Bluffs Savings
Bank, Council Bluffs, agreed to accept
the committee chairmanship.
The Iowa College Foundation was
formed 12 years ago to state the case
for private higher education and to
solicit financial support from business
and industry for its academic pro­
grams. Initial impetus was received
from the Iowa Manufacturers Associa­
tion with strong encouragement from
the National Association of Manufac­
Demands on Facilities

Unprecedented demands presently
and in the foreseeable future on fa­
cilities of both public and private ed­
ucational institutions are necessitating
increased appropriations from legis­
latures for public institutions, and in­
creased voluntary support from all
sources for our non-tax supported col­
At their meeting, the bankers ad­
visory committee was shown these
figures: During the academic year,
1963-64, the 49 public and private insti­
tutions of higher education in Iowa
served 66,906 students; 34,697 (52%)
were in the 19 public senior and junior
colleges, and 32,209 (48%) were in the
30 private senior and junior colleges.
Of the 53,283 full-time students en­
rolled in the 26 regionally accredited
and degree-granting institutions, 24,708
(46.4%) attended the 23 private col­
leges. The ICF members had 18,601
(34.9%) of all the full-time students
Enrollment to Double

Estimates based on present grade
and high school enrollments indicate a
minimum 50 per cent increase in total
enrollment by 1970 for a future college
enrollment of 110,359 or more. The
alternatives, then, are to preserve the
quality and continued educational serv­
ice at private colleges to keep pace
with new students, or to have the
state institutions take over all this
educational load with a greatly in­
creased, burdensome legislative ap­
propriation year after year.
Stated in dollars, it would require
biennium legislative appropriations at
present cost levels of $54.1 million to
undergird such an expanded public
Federal Reserve Bank of St. Louis

college level program. This is the
equivalent of increasing the sales tax
by 49 per cent, or up from 2 per cent
to 2.75 per cent.
Total combined budgets of the 21
ICF schools is $38.3 million, with the

E. H. Spetman, Jr., chmn. of bankers com­
mittee, visiting with Robert E. Vance,
v.p., Maytag Co., an active worker for
Iowa College Foundation.

educational and general budgets total­
ing out at $26.5 million. This means
that students at an average institution
pay 75.6 per cent of the costs of the
academic program. The gap must be
made up from income on endowment,
alumni programs, church support, gifts
from friends and the investment of
business and industry.
Consequently, to keep operation
budgets in balance they must secure
$6.5 million from these outside sources.
It is the purpose of the bankers ad­
visory committee to enlist the whole­
hearted support of as many Iowa
banks as possible for the ICF program
to assist these private colleges in keep­
ing pace with the times, and ahead if


education. The bankers advisory com­
mittee will work with members in the
banking industry to determine a goal
and a suggested yardstick that can be
recommended to banks according to
Committee Members

The 19 other men working on the
bankers advisory committee with Mr.
Spetman are:
G e o rg e E . A llb e e , p re sid e n t,
P e op les
B a n k & T r u s t C o m p a n y, W a te r lo o .
L o re n
A n d e rs o n ,
p re sid e n t,
C h ero k e e
S ta te B a n k , C h erok ee.
C h r is ty F . A r m s tr o n g , vice p resid e n t,
A m e ric a n T r u s t & S a v in g s B a n k , D u ­
b uq ue.
E . L . B a llo u , p re sid e n t, S e c u rity T r u s t &
S a v in g s B a n k , S to r m L a k e .
D . D . B r a m w e ll, p re sid e n t, F ir s t N a ­
tio n a l B a n k , H a m p to n .
W ill ia m H . B r e n to n , p resid e n t, N a tio n a l
B a n k o f D e s M o in e s, D e s M oin es.
C h a rle s E a s tb u r n , c a sh ie r, Io w a S ta te
B a n k & T r u s t C o m p a n y , F airfie ld .
E vans,
p re sid e n t,
N o r th w e s t
B a n k & T r u s t C o m p a n y , D a v e n p o rt.
H . C la rk H o u g h to n , p re sid e n t, T h e F ir s t
N a tio n a l B a n k , I o w a C ity.
W . C. Ils tr u p , p re sid e n t, T h e N e w to n
N a tio n a l B a n k , N e w to n .
L . L . J oh n son , p re sid e n t, C ity N a tio n a l
B a n k , S h en a n d oa h .
J. E . K in g , p re sid e n t, P e o p le s N a tio n a l
B a n k , A ib ia .
J. F . O ’N e ill, v ic e p re sid e n t and tru s t
officer, T h e F ir s t N a tio n a l B a n k , M ason
C ity.
John B. R ig le r , p re sid e n t, C e n tra l S tate
B a n k , M u sc a tin e .
R o b e r t R . R ig le r , e x e c u tiv e vice p r e s i­
d en t, S e c u rity S ta te B a n k , N e w H a m p to n .
B ru c e T o w n se n d , p resid e n t, T he C ity
N a tio n a l B a n k , C lin to n .
E a r l J. U n d e rb rin k , p resid e n t, F ir s t N a ­
tio n a l B a n k , F o r t D o d g e .
M a x vo n S ch rad er, J r., v ice p resid en t,
U n io n B a n k & T r u s t C o m p a n y, O ttu m w a .
C h a rle s H . W a ls h , p resid e n t, F a r m e r s &
M e rc h a n ts S a v in g s B a n k , B u r lin g to n .

Capital Expansion

These 21 colleges have not been
lagging in the area of capital expan­
sion. With the help of gifts from va­
rious sources, as well as long-term
financing, they have invested in the
past five years combined capital im­
provements amounting to $45.2 million
for 76 major structures. This is an
average of $2.1 million per school.
Long-range plans call for an additional
capital investment of $59.3 million in
the next five years for 89 major addi­
tions, bringing the total capital ex­
penditures for the decade to $104.4
million. The combined capital gift goal
of the 21 colleges to meet this need
is $8.8 million for 1964-65.
Business support of higher educa­
tion since 1948 has risen dramatically
to the point now where 41 per cent of
the corporate giving budgets go into


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Iowa News

S90 0 0 T ou r

NetvHuilding at LeJMars Stiriuf/s

EXTERIOR and interior of new building for LeMars Savings
Bank. More than 5,000 persons toured the new building at the
formal opening recently, according to Gordon Mennen, presi-

Andrew E. Jensen
Andrew E. Jensen, 74, former presi­
dent of the First National Bank of
Creston, died in the Greater Commu­
nity Hospital there October 12, after
having been ill for approximately
seven months.

Beef Cattle Tour
Morris F. Neighbor, vice president
of Farmers State Bank, Marion, re­
ports that the bank, in cooperation
with the Union Stockyards Company,
Omaha, recently sponsored a two-day
Beef Cattle Tour for all farmers in the
Marion area. The tour included sev-

dent. About 400 bankers from northwest Iowa and city corre­
spondent banks were entertained at a special showing prior to
the public open house.

eral commercial feed lots, Boys Town,
Ak-Sar-Ben, Offut Air Base and other
points of interest near Omaha.

definite plans concerning the proposed
building will be released at a later

Elected Vice President

To Spirit Lake

W. E. (Bill) LeMaster has been
elected vice president of the Iowa
State Savings Bank of Creston, accord­
ing to Joseph G. Knock, president.

Mr. and Mrs. Charles W. Wetzeler
and family have moved to Spirit Lake
from Frankfort, 111., with the opening
of the State Bank of Terril at Spirit
Lake. Mr. Wetzeler, a former resident
of Storm Lake, where he was cashier of
a bank, has been named executive vice ^
president of the bank at Spirit Lake. '

Two New Directors
Two Clear Lake businessmen, John
M. Powell and Syd Thompson, have
been elected members of the board of
directors of the Community National
Bank of Clear Lake, according to W.
Howard Stewart, bank president.

Two New Offices


The First National Bank of Council
Bluffs plans to open new offices at
Manawa and Carter Lake, according to
Dale Ball, president. Formal applica­
tion for permission to operate the of­
fices has been filed with the Comp­
troller of the Currency.


Charles B. Murtagh
Charles B. Murtagh, 82, who in 1933
became Iowa’s first state comptroller, A
died recently at St. Ann’s Hospital in
Algona following an illness of approxi­
mately one week. Mr. Murtagh retired
as president of Security State Bank in \
Algona in 1961 after 62 years in the
banking profession.

P la n *H artura n a i n *

“ Red” Wolters Retires
Albert P. “Red” Wolters, 74, who
had been associated with banking in
Davenport for more than 60 years and
who was prominent as an athlete in
his early years, has retired. He com­
pleted his service recently with Dav­
enport Bank and Trust C om pany
where he had been an assistant vice
president for the past 10 years.

Hom e Office
2100 GR A N D A V E N U E

Des Moines, Iowa

This is Iowa’s oldest surety company.

progressive company with experi­



Named Bank President


W e are proud of our three hundred
bank agents in Iowa.

» ;




;*>•!y\ C.

Plans Drive-In


M . J. C O R B IN

; y . ■i

V ice President



Federal Reserve Bank of St. Louis


George Sievert, president of the
Manning Trust and Savings Bank
since 1955, has resigned. James Lodwick, vice president since January,
1964, was named to succeed him as
president of the Manning bank.


The Security Bank and Trust
pany of Decorah has purchased
erty upon which a drive-in bank
ity is planned in the future.


persons interested in agriculture have been
invited to the 32nd Annual “ Barnwarmin’ ”
from 7 p.m. to 1 a.m. at the Prog Hop
Ballroom on North Belt Highway at St.
Joseph, Mo., Friday, November 13, according to Art McClaskey, chmn. Mr. MeClaskey is a v.p. and ag rep for First
Stock Yards Bank. Pictured (left to right)
are committeemen planning the event.
Seated: John Giddens, ag rep., 1st Natl.;
Wendel Cline, ag agent, St. Joe Chamber
of Commerce, and Mr. McClaskey. Stand­
ing: Benton O’Neal, a.v.p., 1st Natl., and
Ronald Louden, a.c., American Natl. All
are from St. Joe.



Iow a News

M in eola

H ank

MORE THAN 300 persons, including bankers from the sur­
rounding area, attended open house in Mineola, Iowa, last month
to inspect the new bank building just completed for the Mineola
State Bank. L. F. Kruse, president since 1929, said it is the
first new building to be erected on Mineola’s main street since
he joined the bank staff in 1916. The new building exterior,

SOlIi A n n iversary
October 12 marked the 50th anniver­
sary of the Farmers State Bank in
Lake View. No formal observance of
the occasion was planned.

Remodeling Project
A remodeling project, which will re­
sult in several hundred additional
square feet of area, is underway at
the Warren County Bank and Trust
Company in Indianola. The project,
according to W. G. Beatty, executive
vice president, also will include the
addition of a new public meeting room.
Mr. Beatty, as reported last month,
has resigned effective January 1 to
take a similar position with the Clarke
County State Bank at Osceola. He will
continue as a member of the board of
directors of the Warren County Bank.
Eugene T. Smith, 40, cashier and
director of the First National at Perry,
will succeed Mr. Beatty at Indianola
on January 1.


H a s O pen H o u se in N etr Q

shown at left above, has a glass and brick exterior, with interior
floor space of nearly 1,800 square feet. Pictured in photo at
right, during open house, are: Harold Spencer, pres., Oakland
Savings; J. W. Davis, pres., Citizens Savings, Avoca; Robert E.
Lindquist, v.p., Harris T&S, Chicago; Lew Ross, chmn., Council
Bluffs Savings Bank, and Mr. Kruse.

present building front will be replaced
with a textured aluminum covering.
This is the 50th year of the bank’s

building specialists, and will open ap­
proximately December 1.

Application Approved
Application for a detached facility,
made by Poweshiek County National
Bank of Grinnell, has been approved.

Senior Vice President
O. A. Swartz, president of the Pio­
neer Valley Savings Bank at Sergeant
Bluff, announced recently the associa­
tion of Charles H. Walcott with the
bank. Mr. Walcott, a past president
of the Iowa Bankers Association, will
become senior vice president of the

Remodel Rake Bank
Construction work has begun on the
remodeling program at the State Sav­
ings Bank at Rake. The building will
be widened a total of five feet and the

lik e T h e F a r m

P ic t u r e h e lp s y o u


full service h a n k in g

a c r o s s to f a r m e r s , r a n c h e r s , d a ir y m e n a n d p la n t e r s .
banker writes:

“ A recent article on ‘split
credit’ prompted two of

To Open December 1

our farm customers

The move of the Luxemburg Sav­
ings Bank was made official recently
when the board of directors of the
bank voted to move the charter to
Dyersville. An office of the bank will
remain in operation at Luxemburg.
The new bank will be temporarily
housed in a building remodeled by
Kirk Gross Company, Waterloo, bank

to consolidate



m a­



one credit line with us.”
Ralph N. Taake, Jr., Cashier
First Bank & Trust Company
Cairo, Illinois
Now in 4


Feedbelt, R anch, D airy, South.

Samples and price lists on request.




R A N C H -FA R M • D A IR Y -F A R M • SO U T H -FA R M



Federal Reserve Bank of St. Louis






Iowa News


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Salesman — A g e 25-45. Straight
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Federal Reserve Bank of St. Louis


ARCHITECT’S SKETCH shows how exterior of Farmers & Merchants Savings Bank
of Burlington will look after remodeling. Work on the project was scheduled to com­
mence November 1, according to Charles H. Walsh, pres. In addition to the new ex­
terior, the first floor and mezzanine will be comppletely rebuilt to accommodate the
bank’s expanded business.

Sergeant Bluff bank. Mr. Walcott re­
signed recently as vice president of
The First National Bank, Chicago.
Prior to that, he was president of the
Security National Bank, Sioux City.

ed fieldman and manager for the farm
management departments of the Toy
National Bank and the Farmers Loan
and Trust Company, Sioux City. Prior

Remodel Minburn Bank
The Dallas County Savings Bank at
Minburn has announced plans for an
estimated $20,000 enlarging and remod­
eling of its banking facilities. Work
was scheduled to begin in mid-October.
This year marks the 50th anniversary
of the bank’s existence.

Johnston Succeeds Strait
Clark H. Johnston has been apappointed vice president of the Farm­
ers & Traders Savings Bank at Douds.
He succeeds M. O. Strait,, who has
purchased controlling interest in the
Farmers Savings Bank at Packwood,
as reported last month.
Mr. Johnston was employed in the
Farm Bureau Insurance agency at
Fairfield prior to moving to Douds.

To Davenport Bank
William R. Johnson, assistant cash­
ier of the Citizens National Bank at
Boone, has announced his resignation,
effective November 1, in order to ac­
cept a position as supervisor of the
customer service division of the North­
west Bank and Trust Company of Dav­

New Assistant Cashier
The First Trust and Savings Bank
of Remsen has announced that Mar­
vin L. Kreft is now affiliated with the
bank in the capacity of assistant cash­
ier. Mr. Kreft formerly was employed
as fieldman and manager of the farm
management departments of the Toy
National Bank and Farmers Loan and
Trust Company in Sioux City.
Kenneth L. Ebsen has been appoint­

M. K R E F T

K. L . E B S E N

to the appointment, Mr. Ebsen was as­
sociated with the Union County, South
Dakota, Agricultural Stabilization and
Conservation office. He has been en­
gaged in livestock and general farming
since 1948.

Resigns at Elkader Bank
John J. Miller has resigned from the
Cetral State Bank of Elkader, where
he was assistant cashier, and has
joined the PCA office in Elkader.

A giant Hereford bull, measuring 30
feet high and 20 feet long, has been
erected in Audubon, Iowa, and dedi­
cated to A. A. Kruse, executive vice
president of the First State Bank in
Audubon, who has been spearhead of
activities on behalf of the livestock
and farming industry in that area for
many years. One of Mr. Kruse’s prin­
cipal achievements has been his han­
dling of the special promotion each
year of the “T-Bone Special” train to
the stock yards in Chicago. This spe­
cial train generally has about 55
freight cars of top beef from his sec­
tion of the state. The Junior Chamber
of Commerce erected the bull.

fowa News


Open Orire-Mn a t R e d Oak


NEW RED OAK BANK, the Montgomery County National Bank, featuring two drive-up
windows and a walk-in lobby, is now in full operation, according to W. S. Mayne, pres.
F. E. Davenport and Company, Omaha, was in charge of the building project.

/ta n k e r s S u pport iJontinuatioii
O f 3/iffr a n t W o r k e r Lair
S P E C I A L resolution was pre­
A sented
to the Iowa Bankers Asso\ ciation members at their 16th Annual
Agricultural Breakfast during the 78th
annual convention last month. After
presentation by John B. Rigler, presi^ dent of Central State Bank at Musca9 tine, the resolution was adopted with­
out dissenting vote.
The resolution asks Iowa members
of Congress and the governor to use
every possible means to continue Pub­
lic Law 78, which expires December 31,
and which makes possible the use of
v foreign, migrant workers, principally
from Mexico, in the harvesting of per­
ishable vegetable and specialty crops
in eastern Iowa counties.
Mr. Rigler stated:
“The farmers of our area are faced
with a very serious problem, as are
farmers in other parts of Iowa and
throughout the nation where perisht able vegetable and specialty crops are
raised in volume and where the culti­
vation and harvesting of these crops
requires the skill of migrant workers.
Earlier this year, a policy was det dared in Washington which may lead
to the eventual abolishment soon of all
foreign labor programs. Furthermore,
Public Law 78, which permits the eny trance of seasonal workers from Mex­
ico, expires on December 31 of this
year. Both of these events are likely
to sharply curtail the size of our sup­
plemental work force in this country
k and work a severe hardship on many
of our farmers who depend upon sea­
sonal workers. All of us know that
the inability to obtain competent help
y on the farm is not a new problem but
has been one of agriculture’s major
handicaps for years.
“Within the next few months, farm­
Federal Reserve Bank of St. Louis

ers will be approached by food proc­
essors to contract crops for next sea­
son. Without the assurance of ade­
quate seasonal help, many will not be
willing to take the risk. The tomato
and pickle crops in our area alone
represent an annual cash flow of near­
ly $6 million to our local economy.
This does not include the melons,
sweet potatoes and other vegetable
crops raised locally with the assistance
of supplemental help.
“ Immediate action is needed and the
following resolution has been pre­
“WHEREAS, Public Law 78 relating
to migrant farm help employed for
certain seasonal farm crops in Iowa
and other states expires on December
31, 1964,
“ BE IT RESOLVED that we in be­
half of the farmers in any and all
parts of Iowa using migrant help each
year to aid in the harvesting of special
crops—tomatoes, melons, cucumbers,
potatoes, sugar beets and nursery
stocks and any other such short sea­
sonal and perishable crops—respect­
fully ask our Iowa members of Con­
gress and our governor to use their
best efforts and all means at their com­
mand to assure through prompt exec­
utive and/or legislative action the con­
tinuation of an adequate supply of sup­
plemental crop harvesting help to
which Iowa farm producers of such
crops have had access. For all of your
anticipated attention to and help in
this matter we extend our grateful
“Adopted by the bankers from Ce­
dar, Louisa, Muscatine and Scott Coun­
As noted above, the resolution also
was adopted by the assemblage.

M A X ROY, La Salle Vice President,
has a hawk’s eye when it comes to
Iowa and Iowa farming. H e also is
haw keyed abou t fin d in g w ays and
means to help La Salle’s Iowa corres­
pondents. H e ’ll act fast and right on
the spot to serve you. W h y not get the
facts from M ax. H e lives right nearby
in Iowa City, but he makes his head­
quarters at La S alle N a t i o n a l Bank,
135 So. La Salle St., Chicago, 111. 60690.
STate 2-5200 (area code 312). M e m ­
ber F D IC . Complete Trust Services.






Iow a New s

Rock Rapids Banker
John J. Porter, president of the
Lyon County State Bank since its or­
ganization at Rock Rapids in 1945, has
been elected chairman of the board of
the bank. J. C. “Jerry” Leahy, who is
associated with Roy Dinsdale in the
recent purchase of a majority of the
bank’s stock, was named president.
Mr. Dinsdale was named vice presi­
Mr. Dinsdale is president of banks at
Neligh, Osceola and Shelby, Neb., and
is vice president of the State Bank of
Palmer, Neb., where he resides. Mr.
Leahy has been a senior examiner for
the Nebraska banking department.

Remodel Britt Bank
A remodeling and enlargement plan
of the First State Bank in Britt has
been announced by F. A. Rummel,
chairman of the board.
The bank has purchased a building
to the rear of its present building and,
by adding this additional space, the
present lobby will be increased by ap­
proximately one-third of its present
size. The officers’ area and the book­
keeping department will be enlarged.
Provisions have been made for more
convenience for customers by having
three large coupon booths, including
a family room, a large conference

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Federal Reserve Bank of St. Louis


same contractors who remodeled the
bank seven years ago, and who are
specialists in building and remodeling
bank buildings, have the contract for
this job.

ituijs E ir e T ru eh

Bettendorf Application

CLASSIC— Bob Stewart, left, special rep.,
and Richard L. Dunlap, v.p., Commerce Tr.
Co., Kansas City, are shown on a 1925
American LaPrance pumper. Mr. Stewart
purchased the classic truck for Joe Knock,
pres., Iowa State Sav. Bk., Creston. He
bought it from the lucky person who won
it at the Kansas City A’s lire fighter’s
night. Mr. Knock plans to use it for bank
and civic promotion projects.

room and a directors’ room on the
first floor.
The modernization plans also in­
clude new sidewalks around the build­
Construction started last month and
the completion date is set for March
1. 1965.
The Kirk Gross Company, bank
building firm from Waterloo, Iowa, the



November 8-10— A B A National A gri­
cultural Credit Conference, Hotel
Peabody, Memphis, Tenn.
November 11-13— A B A 33rd Mid-Con­
tinent Trust Conference, Drake
Hotel, Chicago.

March 8-10— A.B.A. National Automa­
tion Conference, San Francisco.
April 8-10 — Independent B an k ers
Assn., Annual Convention, The
D i p l o m a t H o t e l , Hollywood,
F ir s t N a tio n a l B a n k and T r u s t
— T u ls a .................................................................. 48
F ir s t N a tio n a l C ity B a n k — N e w Y o r k . . 11
F ir s t S tock Y a r d s B a n k — St. J osep h . . 72
F ir s t W is c o n s in N a tio n a l B a n k ............... 91
K ir k G ro ss C o m p a n y ........................................ 103
F re d H a h n e .............................................................. 104



H a ls e y , S tu a r t an d C o m p a n y ......................
H a r r is T r u s t an d S a v in g s — C h ic a g o . .
H y -L i n e P o u ltr y F a r m s ................................ 35

A c o rn P r in tin g C o m p a n y ..............................
A m e r ic a n N a tio n a l B a n k — C h ic a g o . . .
A m e r ic a n T r u s t & S a v in g s — D u b u q u e . .
A s c o t H o te l .............................................................
A s h w e ll and C o m p a n y .....................................

An application asking permission to
establish a new bank at Bettendorf
has been filed with the Iowa superin­
tendent of banking by Life Securities
of Iowa, Incorporated. Life Securities
was established at Davenport last Jan­
uary to invest in life insurance stqpks,
banking enterprises and real estate.
According to the application, the bank
would have a capital structure of $ 10\-


B a n k o f A m e r ic a ................................................. 22
B a n k B u ild in g and E q u ip . C o rp ......... 12-13
B a n k o f C a lifo r n ia ............................................ 46
B a n k o f M o n tr e a l .............................................. 44
B a n k e r s L if e C o m p a n y .................................. 31
B a n k e r s S erv ice C o m p a n y ....................10, 36
B a n k e r s T r u s t C o m p a n y — D e s M o in e s .. 80
B a n k e r s T r u s t C o m p a n y — N e w Y o r k . . 8-9
B la c k S ale S y s te m ............................................ 40
C a d illa c A s s o c ia te s In c o rp o ra te d ........... 106
C e n tra l B a n k and T r u s t C o.— D e n v e r .. 64
C e n tra l N a tio n a l B a n k and T r u s t
— D es M oin e s ................................................... 20
C e n tra l S ta te s H e a lth an d L ife ................107
C h ase M a n h a tta n B a n k .................................. 34
C h em ic a l B a n k N e w Y o r k T r u s t C o . . . . 19
C h ile s and C o m p a n y ....................................... 74
C ity N a tio n a l B a n k an d T r u s t
— K a n s a s C ity ................. , ............................... 17
C o m m e rce T r u s t C o m p a n y ......................... 73
C o n tin e n ta l Illin o is N a tio n a l B a n k . . . 37
C u m m in s -C h ic a g o C o rp o r a tio n ................. 50
D a v e n p o rt, P . E ., and C o m p a n y . . . 7 4 , 104
D e L u x e C h eck P rin te rs ................................ 16
D ie b o ld , In c ................................................................ 41
D ig it D is p la y C o rp o r a tio n ........................... 39
D o a n e A g r ic u ltu r a l S e rv ice ...................... 99
D o u g la s -G u a r d ia n W a r e h o u s e Corp. . . 14
D r o v e r s N a tio n a l B a n k ................................ 93
F a r m B u sin e s s C o u n cil ................................... 103
F ig g e , R e g in a ld , and A s s o c ia te s ............ 92
F ir s t N a tio n a l B a n k — C h ic a g o ................. 15
F ir s t N a tio n a l B a n k — D e n v e r ................. 65
F ir s t N a tio n a l B a n k — K a n s a s C ity . . . 45
F ir s t N a tio n a l B a n k — M in n e a p o lis ..5 4 - 5 5
F ir s t N a tio n a l B a n k — O m ah a .................... 69
F ir s t N a tio n a l B a n k — St. P a u l ................. 57
F ir s t N a tio n a l B a n k an d T r u s t
— L in c o ln
............................................................. 77

lo w a -D e s M oin es N a tio n a l B a n k ........... 108
Io w a P o w e r & L ig h t ....................................... 46
Ir v in g T r u s t C o m p a n y .................................. 43
L aM on te, G e o rg e , and Son ...............: . . . 42
L a S a lle N a tio n a l B a n k ........................ 97, 105
L a w r e n c e W a r e h o u s e C o m p a n y ............ 47
L e a m in g to n H o te l .............................................. 56
L iv e s to c k N a tio n a l B a n k — S io u x C i t y .. 60
M a rq u e tte N a tio n a l B a n k ........................... 87
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 . .112
M e rc h a n ts N a tio n a l B a n k ...........................
M id la n d N a tio n a l B a n k ................................ 52
M in n e s o ta C o m m e rc ia l M e n ’s A s s n . . . . 56
M u rp h y , T h o m a s D ., C o m p a n y ................. 92
M u tu a l F ir e an d A u to .................................. 97
N a tio n a l B a n k o f C o m m e rc e ......................
N a tio n a l B a n k o f W a t e r lo o ......................
N a tio n a l R e s e r v e L if e ..................................
N o r th e rn T r u s t C o m p a n y .............................
N o r th w e s te r n N a tio n a l— M in n e a p o lis . .
N o r th w e s te r n N a tio n a l— S io u x F a lls . .


O ld S e c u rity In s u ra n c e C o m p a n ie s . . . . 95
O m ah a N a tio n a l B a n k .................................. 75
O m a h a P r in tin g C o m p a n y ........................... 72
O za rk A ir lin e ........................................................ 51
R e co rd a k C o rp o r a tio n ....................................
R o b e r t B. S c h w e se r and C o m p a n y ..........
S tu d le y S h u p e rt T r u s t In v e s tm e n t
C o u n cil ..........................................................
T V Bank

C o rp o r a tio n


40, 48

..................................... 34

U n ite d S ta te s C h eck B o o k C o m p a n y . . 7 6
U n ite d S ta te s N a tio n a l B a n k — O m a h a . . 66
V a lle y B a n k and T r u s t C o m p a n y
— D es M oin e s .....................................................
V a lle y N a tio n a l B ank-—-A rizo n a ............


W e s t e r n M u tu a l In s u ra n c e ........................ 44
W e ste rn and S ou th e rn L ife In s u ra n c e — 101
B. C. Z ie g le r and C o m p a n y ...........................


Banks Plus Central
States Take Care
of Senior Citizens
E. E. P lac ek , C hairm an o f th e B o ard,
F irs t N atio n al B ank, Wahoo, N e b ra s k a re p o rts
The First National Bank has been offering the Bank
Health Plan since 1960
“We find that Central States’ program is doing a good job of taking care of our senior
citizens. Bank Health provides equal treatment for all age groups, good claim service, prompt
bank service, and customer goodwill.”
More than 1,000 banks offer Bank Health protection. It is available to any of your checking
account customers up to age 8 0 will continue for life ... and there are no increases
in premiums or no decreases in benefits as the policyholder grows older.
President Kenneth A. Tool sums up the Wahoo bank’s attitude this way: “We would recom­
mend Central States to any of our banker friends without reservation. We can describe our
association with Central States in two words-MOST SATISFACTORY!”

T. LESLIE KIZER, President
Federal Reserve Bank of St. Louis

Municipal Bond Service: always a little faster
Y e s , t h e M u n ic ip a l s p e c ia lis ts in o u r B o n d D e p a r t m e n t a re
a lw a y s w illing to help any a n d all of you w ith y o u r b o n d p r o b l e m s .
T h e s e s p e c ia lis ts a re w ell q u a lifie d to a n a ly z e a nd e v a lu a te
y o u r p re s e n t b o n d h o ld in g s , a nd will be glad to help you plan
fo r fu t u r e in v e s tm e n t s .
O u r B o n d D e p a r t m e n t offers M u n ic ip a l a nd G o v e r n m e n t
B o n d s fo r s a le . W e pro v id e fo r t h e s a fe k e e p in g of t h e s e
v a lu a b le s e c u ritie s .
E va lu a tio n , p l a n n i n g a n d s a fe k e e p in g . . . th e s e a re th e t h re e
key w o r d s in o u r B o n d D e p a r t m e n t . A n d r e m e m b e r , to o , ou r
t e a m of c o r r e s p o n d e n t b a n k e rs is a lw a y s re a d y , w illin g and

a b le to h e lp. J u s t w rite , w ire or p h o n e us . H o w a b o u t today?

Jerry Nelson



Ben Eilders

W e're here to help you get w hat you w ant

Sixth and Walnut, Des Moines, Iowa • CH 3-1191

Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis