Full text of The Northwestern Banker : November 7, 1966, No. 1000

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Oldest Financial Journal W est o f the Mississippi
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No. 1000___________________

Des Moines, Iowa

November 7,1966

USDA Raises CCC C ertificate Rate

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The U. S. Department of Agri­
culture, in response to recent
changes in the money market, has
raised the interest rate payable on
Commodity Credit Corporation cer­
tificates to 5.7%.
The certificates, issued to
banks participating in the financing
of 1966 crop price support loans,
had borne an interest rate of 5.2%.
U.S.D A officia ls also report
that the Department is considering
revisions of its regulations which
would allow banks to buy the
certificates directly from the Com­
modity Credit Corporation.
The higher rate, which became
effective late last month, included
no retroactive provision for banks
which had previously invested
funds in 1966 crop price support
loans. The interest rate on invest­
ments is 4.9% through last July 31,
5.2% through October 21 and 5.7%
thereafter.
While certificates outstanding
at the end of September totaled
only $205 million, officia ls expect
the amountto rise in coming months.
E ligible farmers who hold the cer­
tifica tes, as evidence of crop price
support loans, ,may convert them
to cash at participating banks.
The loans are normally for short
maturities- - usually eight or nine
months.
The $205 million outstanding
in certificates atthe end of Septem­

r

ber compared to pooled loans total­
ing $1.37 billion at that time. A
month earlier, $188 million in cer­
tificates outstanding compared with
a loan total of $1.4 billion. Both
figures traditionally rise during
the autumn and winter months. Last
February,
financial
institutions
held nearly $690 million in C.C.C
certificates.

BULLETINS...
LINCOLN: Several local banks, in
response to the recent trend, have
announced an increase to 5% in
interest rates paid on three-month
certificates of deposit. Several
Omaha and other eastern Nebraska
banks had earlier announced rate
increases. Banks which had pub­
lic ly announced the increase, at
press time, included National Bank
of Commerce Trust and Savings,
FirstNational Bank and Trust, City
National Bank and Union Bank and
Trust.

NATIONAL NEWS
BAL HARBOUR: The annual con ­
vention of the Bank PRMA began
here yesterday. The meeting will
continue through Thursday.
CHICAGO: The Chicago Mercantile
Exchange will sponsor a Livestock
and Meat Futures Study Conference

at the La Salle Hotel here Novem­
ber 30. The conference will empha­
size the recent adaptation of futures
trading to livestock and the new
dimension it has added to the
credit and finance operation of
the livestock industry.
CHICAGO: The ABA Mid-Winter
Trust Conference will be held at
the Drake Hotel here Thursday
and Friday, November 17 and 18.
CHICAGO: Philip R. Clarke, 77,
formerly chairman of the board of
the City National Bank and Trust
Company, director of the United
States Steel Corporation and Mont­
gomery Ward, died recently. In
1964, he organized a syndicate to
purchase the Cleveland Indians
baseball team.^ In 1921, he raised
$1.2 million for Japanese relief
following the Yokohama earthquake.
DAYTON, OHIO: Robert M. Hohenbrink has been appointed manager .
and Thomas J. Hime has been
named assistant manager at the
Northridge Branch of the Third Na­
tional Bank and Trust Company.
NEW ORLEANS: The 42nd annual
convention of NABAC got underway
here Sunday. Jack T. Conn, newlyelected ABA president and chair­
man, Fidelity National Bank, Okla(Continued on back page)

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T H E F U L L S E R V IC E B A N K F O R T H E B A N K S O F IO W A

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BANK ^

Walter J. Wunderlich, 75, president
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JOHN DIEFENDORF
Represents

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FOR PERSONAL SERVICE
IN SIOUX CITY

SECURITY NA TIO N AL BANK
SIXTH AND PIERCE
SIOUX C ITY , IOWA

IOWA NEWS
AMES: A conference concerning
“ Alternatives for Balancing Future
World Food Production and N eeds”
begins with registration at 8 a.m.
tomorrow in the Memorial Union,
Iowa State University. The threeday meeting will feature addresses
by experts in government, industry
and education from throughout the
nation.
CRAWFORDSVILLE: P eoples Sav­
ings Bank has doubled its capital
stock from $32,000 to $64,000.
DES MOINES: Thomas H. Bachman
has been elected executive vice
president at East Des Moines Na­
tional Bank. Mr. Bachman had been

IN IOWA
Bernie M iller
represents
Chicago’s only
Stock Yards
bank!

DROVERS
NATIONAL BANK
OF CHICAGO

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MEMBER FDIC

v ice president in charge of the
installment loan department and
public relations. D. H. Taylor,
president of Taylor Refrigerator
Company, Des Moines, and Midwest
Refrigerated Equipment Company,
Independence, has been elected a
member o f the bank’ s board of
directors.
IOWA CITY : A bank parking lot
office certificate has been issued
to Hawkeye State Bank, according
to the State of Iowa Department of
Banking.
ROLAND: Roland State Bank has
increased its capital stock from
$50,000 to $100,000.
TITONKA: Titonka Savings Bank
has increased its capital stock
by $60.000, bringing capital to
$ 120 , 000 .
WEST BRANCH: First State Bank
of West Branch has increased its
capital stock from $100,000 to
$150,000.

NEBRASKA NEWS
The two agricultural seminars
sponsored by the Nebraska Bankers
A ssociation were held as sch ed­
uled last week in North Platte and
Lincoln. Details of the meetings
will be reported by Editor Ben
Haller in the December issue of

Northwestern Banker.
NEHAWKA: Funeral services were
held recently in Platts mouth for

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MINNESOTA NEWS

OUT

THE TALI

BLUE EARTH: The board of direc­
tors of the Blue Earth State Bank
have announced the purchase of
adjoining property for future bank
expansion. Two leased buildings,
located on the property, will be
used in the future development al­
though alteration plans are not
yet definite.
FERGUS FALLS: Charles D An­
gus, Starbuck, has joined the
Fergus F alls National Bank as an
agricultural
representative.
For
the past seven years, he had been
a branch manager for Production
Credit A ssociation in Starbuck.

GRI

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HUTCHINSON: John R. Swanson,
25, has joined the staff of the
Citizens Bank here as an a ssist­
ant cashier. He will assume duties
in the installment loan department.
INTERNATIONAL FALLS: The
c ity ’ s newest financial institution,
International State Bank, has opened
for business in its new building.
Nearly 200 persons visited the bank
at an open house celebration ar­
ranged for bankers from throughout
the state.
LAKEFIELD: Wayne Schultze, for­
merly cashier, has been elected
v ice president and cashier at Farm­
ers State Bank here. Mr. Schultze
joined the bank in 1957 as an as­
sistant cashier. The bank has also
raised to 5% the interest rate paid
on time certificates.
MANKATO: Terry E. Enge has
been appointed assistant cashier
at First National Bank of Mankato.
Mr. Enge joined the bank as atelier
in 1964.
MINNEAPOLIS: Keith M. Barnett,
55, vice president, Northwestern
National Bank of Minneapolis and
head of the bank’ s correspondent
banking department, died shortly
after his return from the American
Bankers A ssociation convention in
San Francisco. He had arrived by
air and was being driven home
by friends when he died of an

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IOWA-DES MOINES
NATIONAL BANK
Dale Luckow

Member F e d e ra l D e p o s it Insurance C orporation

apparent heart attack. Details
appear in the November issue of

Northwestern Banker.
NEW PRAGUE: Donald Nordlie,
vice president, Freeborn National
Bank, Albert Lea, has resigned
that post to accept a position as
vice president at the First National
Bank of New Prague. Mr. Nordlie
had been associated with the
Albert Lea bank for approximately
10 years.
ROSEAU: Ground has been broken
for the new $100,000 building which
will house the Citizens State Bank
of Roseau. The building will rise
on a site formerly occupied by
a hotel and a service station. The
all-modern brick structure will
include six teller windows and a
drive-in teller window, according
to President Robert F oley.
SILVER BAY: James Haug, a s s o c i­
ated with the Grafton(N.D.) Nation­
al Bank for the past two years, has
joined the Silver Bay State Bank
as an assistant cashier. He had
worked in the bookkeeping depart­
ment and as a teller in the North
Dakota bank.
WHITE BEAR LAKE: A hearing on
a proposal to charter a new bank
in White Bear Lake has been con ­
tinued to Thursday, January 12,
according to the Minnesota Bank­
ing D ivision. Application for the
charter was submitted by David B.
Trach and Stanley B. Korengold,
both of St. Louis Park. The appli­
cation lists proposed capital of
$400,000 for the bank which would
be located in the White Bear Shop­
ping Center on/ Highway 61. The
application was submitted August
15 and the hearing was originally
set for October 11.

NORTH DAKOTA NEWS
DICKINSON: Richard L. Parten,
34, has joined the First National
Bank of Dickinson as a v ice pres­
ident. Prior to joining the bank,
Mr. Parten .served five years as a
senior loan sp ecia list with the
Small
Business
Administration.
Prior to that time, he was an a s ­
sistant bank examiner with the
FDIC in North Dakota and Montana.
HATTON: Eugene C. Anderson, 45,
president, Farmers and Merchants
National Bank, has been awarded
the Governor’ s Outstanding Leader­
ship award in competition with 27
other community leaders in a con­
test sponsored by the North Dakota
Economic Development Commission.

COLORADO NEWS
DENVER: Construction of the new
building for the Denver Branch,
Federal Reserve Bank o f Kansas
C ity, was scheduled to begin last
week, following the awarding of
the awarding of more than $5.6
million in contracts. The new
four-level building will be built
facing on 16th street between
Arapahoe and Curtis streets. Con­
struction is expected to require
approximately two years.
LA FAYETTE: Horace E. Davis, a
senior bank examiner in the Colo-

•SOUTH
0 MAHA

'S

TOCKYARDS NATIONAL BANK

Member F.D.I.C.

rado Bank Commission, has re­
tired following 14 years of service
with the department.

In The November Issue O f ...

The NORTHWESTERN BANKER
A detailed article in the Novem­
ber issue of Northwestern Banker,
scheduled for distribution this
week, takes a look at decreasing
liquidity in the nation’ s commercial
banks, reviews the reasons for it
and suggests means of combatting
low-quality, low-liquidity trends.
An article of particular impor­
tance to personnel in smaller banks
is that which d iscu sses the impact
of an interest-sensitive public on
the country bank.
Full reports on the American
Bankers A ssociation convention
in San Francisco, the Iowa Bankers
A ssociation
convention in Des
Moineç, the 1966 series of Nebras­
ka Group Meetings and results of
the North Dakota group meetings
are also reported in this issue.

CHILES & COMPANY

LINCOLN

Member, Midwest Stock Exchange

M UNICIPAL A N D CO R PO R A TE B O N D S
LISTED , U N LIST ED A N D LO C A L ST O C K S
412 Farm Credit Building, Omaha, Nebraska 68102
Phone 346-6677

—Professionals in Livestock Loans

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


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Agencies

Im/ffi/,^ul/diBWIn
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In v e stm e n ts,
FARM CREDIT BLDG.

OMAHA

SOUTH DAKOTA NEWS
PIERRE:
The Capitol Avenue
branch of the Pierre National Bank
has opened its doors for business.
RAPID CITY: Willis Brown, pub­
lisher of the Rapid City Journal,
has been elected to the board of
directors of the First National
Bank of The Black H ills.

NATIONAL NEWS
(Continued from front page)
homa City, and Charles E. Shewalter, senior v ice president and
controller, Commerce Trust Com­
pany, Kansas City, will be among
the speakers.
NEW YORK: New York City was
obliged to pay an interest rate of
4.759% —the highest rate it has
been charged in 34 years —to bor­
row $123 million recently. There
was a single non-competitive bid
for the borrowing made by a syndi­
cate headed by the Chase Manhattan
Bank and the First National City
Bank. In May, 1932, the city had
paid 5.5% and, in January of the
same year, had paid 6%.
NEW YORK: Cornelius D. Howland
has been appointed executive vice
president of Chase International
Investment Corporation, the foreign
financing subsidiary of the Chase
Manhattan Bank, N.A. Mr. Howland
is well known to bankers through­
out the nation due to his previous
assignment in the national division
of the bank’ s correspondent depart­
ment.
PHILADELPHIA: In an address
prepared for presentation at the

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annual convention of the Mortgage
Bankers A ssociation of America,
President Ewart W. Goodwin pre­
dicted that more money would be
available for mortgage lending by
mid-1967. “ Another shift of empha­
s is in the investment market seems
probable,’ ’ he said, and the avail­
ability of mortgage funds will be
“ much enhanced.’ ’

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

ST. LOUIS: First National Bank
last week held its 20th annual Con­
ference of Bank Correspondents
at the Sheraton-Jefferson Hotel
here.

Let Mighty Mite
WASHINGTON, D .C .: Interest rates
on conventional home mortgages
continued their rise to all-time
highs in September, according to
the Federal Home Loan Bank Board.
New home mortgages averaged
6.22%, up 4 points from August and
up 47 points from September, 1965.

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Minimum:
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NORTHWESTERN BANKER
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WANTED
A promotion and /or goodwill minded
agricultural banker to use our
resources in his farm or ranch
relations program. Write Box FBC,
c '/o NORTHWESTERN BANKER,
306 Fifteenth Street, Des Moines,
Iowa 50309.
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MAIL TODAY
T o: Northwestern Banker
306 Fifteenth Street
Des Moines, Iowa 50309
Please run the following c la s s ­
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Nov. 14 Nov. 21
Nov. 28
December Magazine

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No. 1000 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, D es
Moines, Iowa 50309. Subscription 50£ per copy, $4 per year. Second c la ss postage paid at Des Moines, Iowa. Address all mail
(subscriptions, changes of address, Forms 3579, manuscripts, mail items) to above address.


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