Full text of The Northwestern Banker : October 14, 1968, No. 1123

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Oldest Financial Journal Serving
The Central and Western States
t

No. 1123

October 14,1968

Des Moines, Iowa

Will Banks Forfeit Farm Credit?

The following excerpts were
taken from a talk made at the
American Bankers Convention
by Monroe Kimbrel, president,
Federal Reserve Bank, Atlanta,
on the subject, “ Will Banks
Forfeit Farm Credit?”

•L
1

“ Many rural banks may ex
perience real difficulty meeting
the larger credit needs that will
accompany the expanding capi
tal requirements for agriculture.
They will continue to be plagued
by problems of seasonally de
clining deposits at the very
same time that demands for
loans to farmers are increasing.
While all of this is occurring,
bankers who supply credit to
farmers are probably going to
find businesses and consumers
also clamoring for more funds.
“ Because of these handicaps,
should bankers abandon the
farm loan market entirely? Or,
if they do not abandon farm
lending altogether, should they
be content with what is left
after other lenders have taken
their pick? I believe the answer
is, “ No.”
“ In the short-run, some banks
may gain more from high-return

installment loans than from
agri-business and farm credit.
However, this short-run gain
could turn into a long-run loss.
“ There are two possible gen
eral directions from which help
can come to bankers wanting to
maintain and improve their farm
lending positions: from outside
the commercial bank and from
within the commercial bank.
“ From outside the commercial
bank help may come from a pro
posed change in Federal Re
serve discount policy. Most of
you are aware that the Federal
Reserve System has recently
completed
an extensive re
appraisal of the Federal Re
serve discount mechanism. In
the process, it gave special
attention to the problems of
bankers closely identified with
the provision of credit to agri
culture.
“ The recently issued report
on this reappraisal contains
two provisions that, if adopted,
can help banks lending to farm
ers. At the present time, the
proposals are being discussed
within the banking system and
elsewhere.

“ Both of the proposals that
affect banks specializing in
lending to farmers are designed
to reduce the need to maintain
as high liquidity as in the past
and thus to make it possible
for the banks to divert more of
their resources to farm loans.
One proposal provides for a
basic borrowing privilege which
will enable the banks to adjust
with greater facility to frequent
but irregular deposit flows.
“ A provision especially use
ful to rural banks provides that
those banks that experience de
posit and loan levels varying
in clear seasonal patterns, can
negotiate for longer term credit
up to nine months with the Fed
eral Reserve Bank.
“ The rural banker, some per
sons suggest, might also be
given aid through plans such as
the formation of an institution
for banks resembling a regional
Federal immediate credit bank;
however, this kind of arrange
ment does not seem imminent.
“ No matter how much help is
offered from outside the com
mercial banks in order to make
it easier for them to meet the
demands for farm credit, action
(Continued on page 6)

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IOWA NEWS
ARCHER: William E ngeltjes has
been named manager of the Secu
rity State Bank office here, suc
ceeding William C. Haht, who
died recently. Mr. E ngeltjes has
been associated with the Ankeny
National Bank for the past year.
DES MOINES: A new parking lot
office was opened last week by
Iowa-Des Moines National Bank at
E a st 25th and Euclid. A pre-fab
unit is being used pending con
struction of a permanent office.
FORT DODGE: The F irst National
Bank has acquired land near the
comer of Tower Drive ju st north
of U. S. Highway 20 for future bank

GLEN WOOD: John Dean, president
of Glenwood State Bank, reports
that work is progressing on the
bank’s expansion and remodeling
program. The adjacent building is
being incorporated into the bank
structure to provide drive-through
banking. Present quarters are being
remodeled and the vault area has
been expanded. F . E. Davenport
Co., Omaha, is installing addition
al safe deposit boxes. Structural
Designs of Holstein, la ., is archi
tect for the job.
KALONA: Open house will be
held at the Kalona Savings Bank’s
new building tomorrow, October 15.
L a PORTE CITY: Glen A ltfillisch
of Webster City has been named
assistan t vice president of the
L a Porte City State Bank. For
the past two years, he has been
associated with the State Banking
Department as an assistan t bank
examiner in the Webster City area.

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6TH AND PIERCE SHEETS . SIOUX CITY

MALLARD: John M. Blake has been
named manager of the Mallard of
fice of the Palo Alto County State
Bank. He is a former instructor at
Pocahontas Community HighSchool.

MAQUOKETA: The Maquoketa State
Bank recently observed its 10th
anniversary with a six-day ce le
bration .

PERSIA: John D. Willard, 69, pres
ident of Home Savings Bank of
Persia, died October7 in a Council
Bluffs hospital. He had been in
the banking business for more than
50 years.
PRINCETON: Mrs. Glen Suiter,
wife of the president of the Farm
ers Savings Bank here, died re
cently after being struck by a
train as she walked across rail
road tracks near her home.
WATERLOO: The Peoples Bank
and Trust Company recently ob
served its 25th anniversary with
a week-long celebration.

-f

NEBRASKA NEWS
LINCOLN: The FirstN ationalBank
and Trust Company has been named
an agent for BankAmericard by the
BankAmerica Service Corporation.
NORFOLK: The State Director of
Banking has denied an application
for a third bank charter in Norfolk.
The application had been filed by
the Bank of Norfolk, which was to
have been located in the Sunset
Plaza Shopping Center. It would
have been headed by RoyDinsdale,
president of the State Bank in
Palmer, N ebr., and John Glandt,
executive vice president of the
National Bank of Neligh, Nebr.
OMAHA: The First Security Growth
Fund, Inc., opened its doors for
business last month and in less
than two weeks the Fund is near
ing the $2 million mark in net
a ssets. This figure marks it as
the fastest growing mutual fund
in this area. Charles F . Heider,
president of the Fund, said total
assets now stand at $1,750,000.
WAKEFIELD: The Wakefield Na
tional Bank is undergoing com
plete interior and exterior remodel
ing.

4
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MINNESOTA NEWS
BLOOMINGTON: Eugene N. Axness
has been elected assistan t vice
president of the Northwestern Na-

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12th & N S treet • LINCOLN, NEBRASKA • Member: F.D.I.C.

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tional Bank. He was formerly a
correspondent banking officer at
the Northwestern National Bank of
Minneapolis.
DULUTH: Joseph G. Sellwood, re
cent chairman of the board of the
Northern City National Bank, has
died in a Duluth Hospital at the
age of 66. Three generations of the
Sellwood family held substantial
interests in the City National Bank
from 1906 until 1957, when that
bank merged with Northern Minne
sota National to form the present
Northern City National Bank. Mr.
Sellwood had been a Duluth busi
ness and civic leader for many
years.
ELMORE: Charles Johnson has
been named assistan t cashier at
the F irst National Bank. He has
been employed by Control Data
Corporation in Minneapolis for the
past two years.
HASTINGS: Lawrence N. Conzemius
has been named assistant cashier
at the F irst National Bank of
Hastings. For the past year and
a half, he has been employed as
operations officer at the F irst
National Bank of San Jo s e , Calif.

MINNEAPOLIS: Wayne Anderson
has been elected cashier at the
Northeast State Bank. He joined
the bank in 1963 and previously
served as head bookkeeper, head
teller and loan teller.
MINNEAPOLIS:
The Minnesota
Bankers Association will hold its
19th annual Junior Bank Officer
and Staff Conference October 16—17
at the St. Paul Hilton Hotel. Over
600 delegates are expected to
attend the two-day meeting.
MORA: The Peoples National Bank
recently marked its 50th anniver
sary with a two-day celebration.
ST. PAUL: Dale E . Duper has
joined the staff of Gamble’s Con
tinental Bank as commercial loan
officer, a new position.
STILLWATER: The Cosmopolitan
State Bank recently held an open
house in its new bank building.

VIRGINIA: Fred Erickson has been
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Federal Reserve Bank of St. Louis

named assistant cashier at the
F irst National Bank of Virginia.
Mr. Erickson, formerly of Little
F a lls, Minn., recently joined the
staff of the bank in the timepay
department.

NORTH DAKOTA NEWS

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA
Midland National Bank in Billings,
Mont.

BISMARCK: Richard L. Parten,
formerly a vice president and as
sistant trust officer of the First
National Bank of Dickinson, has
been named executive vice pres
ident and trust officer of the
F irst American Bank and Trust
Company of Bismarck. He replaces
Wilbert L . Murray, who has re
signed as executive vice president
and has been named to the bank’s
board of directors.
CARRINGTON: James Stewart has
joined the staff of the F irst Na
tional Bank. He has been an in
vestments salesman here for the
past two years and will now work
in various departments at the bank
and will also handle insurance.

SOUTH DAKOTA NEWS
ABERDEEN: Arden Peterson, a s
sociated with the Aberdeen Nation
al Bank: since 1963, has resigned
to accept a position in the opera
tions and customer service de
partment of the First Minnehaha
National Bank of Minneapolis.
ABERDEEN: Mel Breitag has been
promoted to auditor of the F irst
National Bank. He joined the bank
in 1967 and has been working in
the comptroller department.
RAPID CITY: Jam es M. Schneider
has been named executive vice
president and director of Rushmore
State Bank of Rapid City. He was
formerly vice president with the

ILLIN O IS NEWS
ALSIP: Mrs. Ora E. Smith has been
named assistant cashier at the
Alsip Bank. She was formerly
supervisor in the customer account
ing department at the Beverly
Bank, Chicago.
CHICAGO: Harold Meidell, 58,
chairman of the board of La Salle
National Bank, died October 3,
following a long illn ess. He joined
the bank as a principal officer in
1946, assumed the bank presidency
in 1956 and has been chairman
of the board and chief executive
officer since 1964.
YORKVILLE: Farmers State Bank
has withdrawn its membership in
the Federal Reserve.

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MONTANA NEWS
MISSOULA: E. R. Caster, cashier
of Missoula Bank of Montana, has
been advanced to vice president
at the bank. He has been with the
bank since it opened in 1964.

new enlarged vaults, lobby and
bookkeepers and officers areas.
The new quarters will be built on
property now owned and occupied
by the bank.

Farm C red it.. .
(Continued from page 1)

WYOMING NEWS
CHEYENNE: The First Cheyenne
State Bank opened for business
October 1 at 8th and Warren Ave
nues. Grand opening will be held
at the bank on October 15. Capital
ized at $350,000, the bank is the
only state bank in Cheyenne.
Byron Hirst is bank president, and
Ralph L. Owen is vice president
and cashier.
SHERIDAN: Work is scheduled to
begin this fall on a new bank
building for the F irst National
Bank. The new building will pro
vide drive-in fa c ilitie s, parking,

has to begin within the bank.
The initiative must come from the
executive offices and directors’
rooms within the individual banks;
it cannot come from the Federal
Reserve or some government agen
cy.
“ A good many banks have al
ready taken steps to meet more
adequately the growing needs for
farm credit. As a first step, some
of them have as a matter of policy
determined that they will main
tain a substantial amount of their
loans in the form of farm loans.
In nonurban areas, other banks
have actively solicited and ob
tained deposits of regional and
national firms, agreeing in some

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That's why over half the banks in Iowa are
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James E. Coquillette
President

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C e d a r Rapids, Iowa 52401

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cases to service the trade ac
counts for the corporate depositor
or take over the financing formerly
done directly by the trade concern.
“ A third avenue for improving
farm lending has, of course, been
an increase in the use of partici
pation loans.
“ Some banks can expand the
type of services that attract de
posits and good farm loans by
developing a special professional
staff and offering services such
as automated record-keeping sy s
tems or guidance in tax planning.
“ In any event, the final answer
must come from top management at
each bank if a bank is to be a
leader in farm lending.”

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No. 1123 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
IoWa 50309. Subscriptions 50^ per copy, $6 per year. Second class postage paid at Des Idoines, Iowa. Address all mail
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