Full text of The Northwestern Banker : October 1966, 72nd Year, No. 996

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Federal Reserve Bank of St. Louis

. . . don’t miss M N B ’s eighth annual coffee and Kolach party, at the
Iowa Bankers Association Convention. It’s Tuesday, October 18th, after
the theatre party. There’ll be Kolaches as far as the eye can see and
o f a coffee p lan ter’s heart,
enough coffee to warm the cockles
tumes, too. □ Cedar Rapids
Pretty serving girls in Czech cos(some say the U.S.A.). Let us
is the Kolach center o f Iowa
October 18th. □ W e ’ll be
prove it to you on Tuesday,
serving on the mezzanine at

the Fort Des Moines Hotel,

Stop in and have a dunking
correspondent specialists.

good

tim e

w ith

M N B ’s

Me/tdumh HdhoYid
THE MERCHANTS NATIONAL BANK OF CEDAR RAPIDS

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Federal Reserve Bank of St. Louis

SER VING OVER HALF OF ALL IOWA BANKS

about to build or remodel?
you can’t afford not to know
about this creative way
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duced. "Banks Are For People" discusses the major aspects of
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tomers, employees, officers, board members, and ultimately,
stockholders.
A bank building can be a work of true art with classic appeal to
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As a direct result of our 53 years' experience on over 4,200
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n o r t h w e s t e r n Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

Dial Offers Debentures
Dial Finance Company announced
that it filed with the Securities and
Exchange Commission a registration
statement covering a proposed public
offering of $8 million of senior-subor
dinated debentures due October 15,
1986. Salomon Brothers & Hutzler
will head the underwriters who plan
to offer the debentures.
Net proceeds from the sale will be
added to the company’s general funds
and will be available for additional
working capital.
Dial and its finance subsidiaries are
engaged in the direct consumer loan
business and currently operate 306
offices in 33 states.

Oldest Financial Journal West of the Mississippi

for your O cto b e r, 1966, reading
72nd Year

No. 996

Offers $2 Bill
A poll of branch managers of Frank
lin National Bank, New York, revealed
that 36 depositors have taken the bank
up on its offer of a free $2 bill when
ever an employee fails to smile, say
hello or thank you.
The bills, recently discontinued by
the U. S. Treasury, were offered in a
series of newspaper advertisements
and television commercials starting
August 23. The bank serves 438,000
depositors at 65 branches on Long
Island and New York City.

FEATURE A R TIC LES
29
31
32
34

San Francisco Will Host A.B.A.
San Francisco— “ Everybody’s Favorite City”
1866-1966— Centenntial for Omaha National— Ben Haller, Jr.
Area Bankers See No Easing of ‘ Tight Money’
— A N o r t h w e s t e r n B a n k e e Survey
An Iowa Banker’s One-Man Fight— David L. Lendt
More Bankers Seek Graduate Education— Lewis E. Davids
Survey Shows 81.6% of Small Bankers Number Accounts
fo r E D P — A N o r t h w e s t e r n B a n k e r Survey
Public Sees World Series Via Color TV in Bank ‘ Stadium’
Optimism at St. Joe Market Day

38
40
42
46
54

Name Financial Officer
At Interstate Securities
Leonard W. Jurden III, has been
named vice president-finance of Inter
state Securities Company, Kansas City.
In this newly created position, Mr.
Jurden will be responsible for plan
ning and executing financial programs
for the consumer finance installment
firm. He will work directly with ma
jor banks and institutional investors
and direct the placement of commercial paper.
Mr. Jurden, a director of Interstate
Securities Company, is vice president
and a director of the Old Security In
surance Companies, wholly owned sub
sidiaries of Interstate.

2 ,0 0 0 to NABAC
Dr. John A. Hunter, president, Lou
isiana State University, Baton Rouge,
will keynote the 42nd annual conven
tion of NABAC, The Association for
Bank Audit Control and Operation.
The three-day meeting will be held
November 6-9 in the Jung Hotel, New
Orleans.
Over 2,000 delegates and their wives
are expected to attend. The com
plete program will be published in the
November issue of the N o r t h w e st e r n
B anker.

STATE BANKING NEWS
Minnesota News
Twin City News
South Dakota News
North Dakota News
Montana News
Colorado News
Wyoming News
Nebraska News

88 Omaha News
90 Lincoln News
92 1st National of Omaha
Conference Report
96 1st National of Lincoln
Conference Report
102 Omaha National Cen
tennial Conclave Repo:

69
70
77
80
82
82
82
87

IOW A BANKERS CO N VENTIO N SECTIO N
109
114
120
122
130
142

Iowa Bankers Association 80th Annual Convention Program
A Salute to Frank Warner
Two Presidential Candidates
You Will See Them at the Iowa Convention
Iowa Group Chairmen Report
Des Moines News

NORTHW ESTERN BANKER
306 15th Stree t, Des Moines, iow a 50309, Telephone (A re a Code 515) 244-8163
Editor

Publisher

Chairman

Malcolm K. Freeland

Clifford De Puy

David L Lendt

Larry W , Nothwehr

Advertising Assistant

Circulation Department

Field Representative
AI Kerbel

Field Representative

Mildred Savich

Ben J. H aller, Jr

M anaging E ditor

Business M anager

Lena Sutphin

Joe M, Smith

Auditor

Bertha Soderquist

Field Representative

Paul M asters

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

No. 996. Northwestern Banker is published five times a month by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Sub
scription 50c per copy, $4 per year. Second class postage paid at Des Moines, Iowa. Address all mail subscriptions, change of address, Form 3579, manu
scripts, mail items) to above address.

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Federal Reserve Bank of St. Louis

No rthw e ste rn Banker, O c to b e r , 196&

**# tisi lo

in
i” firn Irsi
h
a
p
S
H varhvs /S m i n i i* m p o r linns
a n k of

A m e r i c a announced it

B had well over 2,000,000 travelers’
cheque application forms eligible for

its giant “Castle in Spain Sweepstakes.”
Ernest J. Young, vice president and
executive head of the bank’s travelers
cheques activities said that the con
test—believed to be the first consumer
sweepstakes to be run by a bank—had
been so successful to date that the

bank had already doubled the entries
it received last year. The contest,
which started in late May, closes on
October 15.
As an extra incentive the bank has
offered one of three special bonus
prizes to its 8,000 seller banks in the
United States for the best Sweepstakes
display. Banks can use the B of A
promotional materials or build their
own display.

Plan Credit School
Applicatons are now being accepted
for the 1967 session of the National
Installment Credit School.
The school, sponsored by The Amer
ican Bankers Association at the Uni
versity of Chicago, will be held Feb
ruary 12-24. Its capacity is 190 stu
dents who will live and study in the
university’s Center for Continuing Ed
ucation.
Applications will be accepted only
on the prescribed form which is avail
able from The American Bankers As
sociation, 90 Park Avenue, New York,
N. Y. 10016.

Move 60-T on Tree
A to w e rin g , century-old copper
beech—one of the oldest trees on Long
Island — was spared the woodman’s
axe by Manufacturers Hanover Trust
Company when the bank recently be
gan construction of its new branch
office in Great Neck, L. I.

Best “ b u y s ” in a generation

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N ofor
rthFRASER
w e ste rn Banker, O c to b e r , 1966
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

The bank contracted to remove the
giant tree from its branch site for re
planting on abutting village property
along with another specimen tree, a
weeping beech, which is considerably
smaller.
It took over two weeks to relocate
the 60-foot copper beech, which has
a trunk diameter of 30 inches, and
about five days to move the weeping
beech.
The copper beech, with a 24-foot ball
of earth, weighed approximately 60
tons.

To Travel Wisconsin
Martin H. Malecki, Jr., was elected
correspondent banking officer at Har
ris Trust and Savings Bank, Chicago.
His principal duties are in the state
of Wisconsin.

( )
X

Were implementing
the big change
in the com belt.
Our new 14-acre plant in

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the w orld’s largest m anufacturer

tion of farm implements in

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plant in D etroit, a parts depot in

bines and diesel engines.

d e s ig n e d fo r use on co r n b e lt

R a cin e, and a serv ice train in g

farm s. Im p lem en ts designed to

school in Indianapolis.

M assey-Ferguson’s new im ple
ment plant means business in the
corn belt. Y ou can bank on it.

increase corn belt produ ctivity.

M a ssey -F erg u son ’s 36 plants

M assey-Ferguson located this

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D es M o i n e s , I o w a

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Federal Reserve Bank of St. Louis

N o rthw e ste rn Banker, O c t o b e r , 1966

Haul* t*H3MA A d a p ts Thann»
"M a r k e tin g far i*ra fit99

F. R. S W A N

E. G. G E A R H A R T , JR.

HE Bank Public Relations and
T
Marketing Association will hold its
51st annual convention at the Ameri
cana Hotel, Bal Harbour, Fla., Novem
ber 6-10. The meeting, expected to
attract more than 1,500 delegates, is
being planned around a “Marketing
for Profit” theme.
Hugh M. Redhead, senior vice presi
dent, Mellon National Bank, Pitts
burgh, is general convention chairman;
Frank R. Swan, executive vice presi
dent, City National Bank and Trust
Company, Oklahoma City, is presi
dent, and Ernest G. Gearhart, Jr., vice
president, First National Bank, Miami,
is Florida chairman.
The general session speakers will
study the marketing concept from
four different angles, all relating to
the enticing goal of profit making.
Their presentations will be based on
research currently being conducted by
them within the banking industry.
Setting the pace for the series at
the Monday session will be a review
of “Marketing and Its Orientation to
Bank Profits—As Bank Presidents See

It,” presented by Program Chairman
Redhead.
On succeeding mornings, delegates
will hear:
“Marketing Planning for Profits”—
Eugene J. Kelley, research professor
of business administration, Pennsyl
vania State University, University
Park.
“Personnel M a rk etin g for Bank
Profits”—W. J. E. Crissy, associate
dean, Michigan State University, East
Lansing.
“Mass Marketing for Bank Profits”
—William R. Davidson, professor of
business organization, Ohio State Uni
versity, Columbus.
Departmental and clinics will be
held in a similar format to former
years.

Retires at Harris Bank
Warren L. Fellingham, vice presi
dent and chairman of the trust in
vestment committee, Harris Trust and
Savings Bank, Chicago, retired on Sep
tember 30, after more than 40 years
of bank service. He was born in Mar
shalltown, Iowa.

Offer To Buy UC Stock
Western Bancorporation has made
an exchange offer to the holders of
the shares of United California Bank
stock not already owned by the Cor
poration.
Western Bancorporation presently
owns about 82.2 per cent (4,919,275
shares) of United California Bank’s
5,986,851 outstanding shares.

Establish Frankfort Branch
Homer J. Livingston, chairman of
the board of The First National Bank
of Chicago, announced recently that
the bank has received a license from
the German Banking Authority in
West Berlin, to establish a branch in
Frankfurt-am-Main, G erm any. Pre
viously, permission had been granted
by the Federal Reserve Board and the
Comptroller of the Currency. The op
eration in Frankfurt will be the bank’s
second branch. The London branch
of The First National Bank of Chicago
was established in January, 1965.
The F r a n k fu rt branch will be
headed by A. Robert Abboud, vice
president, who formerly was in charge
of the Continental Europe, Middle
East and Africa section of the inter
national banking department.

Continental Ad Change
Four staff changes were announced
in the public relations division of Con
tinental Illinois National Bank and
Trust Company of Chicago.
Donald R. Peterson, formerly na
tional merchandising manager for The
Kitchens of Sara Lee, a subsidiary of
Consolidated Foods Corp., was named
advertising manager.
Mr. Peterson succeeds John V. Egan,
Jr., who has been transferred to a line
position as marketing manager for
Continental’s new Town & Country
charge card system.
John M. Ripley, formerly sales pro
motion associate, has been promoted
to assistant advertising manager.
Robert S. Mendenhall, formerly em
ployee magazine editor for Libby, Mc
Neill & Libby, has been appointed
staff communications associate.

Full Service Credit Insurance
LET US SERVE YOU
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WITH OUR PACKAGE PLAN FOR CREDITORS.
Credit Life Insurance.
Credit Accident & Health.
Automobile Physical Damage.
Inland Marine Floater,
Non-filing.
Vendor Single Interest.

Write or phone for complete information
Our recently formed Casualty Insurance Company of America is a wholly
____ owned subsidiary of Life Investors Insurance Company of America.

T H E R O N P. TH O M SEN

Vice President
Life Investors Insurance
Company of America
No rthw e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

LIFE IN V ESTO RS

INSURANCE CO M PAN Y OF AM ERICA
275 Collins Road, N.E.
Cedar Rapids, Iowa

You can expect a little extra from Chase Manhattan
The extras come from what we call Consolidated
Correspondent Service.
As we see it, any good bank can give you an
adequate portfolio review, or dig up volumes of
routine credit information on order. But service
goes a bit beyond the performance o f a profes
sional chore.True correspondent service is a pack
age concept. It consolidates all your needs as a
matter o f course; then imaginatively seeks out
additional ways to be helpful.
And it’s who and what we are that makes it
possible for us to consolidate service and give

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Federal Reserve Bank of St. Louis

you more. People—plus knowledge, experience,
tradition, facilities and size make us unique as a
banker’s bank. That’s why we’re the nation’ s
number-one correspondent bank by quite a few
galloping lengths.
Call on us for anything. We’ll show you the
value o f Consolidated Correspondent Service—
why you can expect a little extra from your friend
at Chase Manhattan.
THE CHASE M ANHATTAN BANK
National Association/Member Federal Deposit Insurance Corporation

N A S S » io Suit L a k e
HT'HE National Association of SuperX visors of State Banks will hold its
65th annual convention at the Hotel
Utah in Salt Lake City, October 17-21,
according to President William E.
Nuesse, who also is Wisconsin’s com
missioner of banks. An attendance of
600 is expected.
The annual meeting, which in the
past traditionally was held over a
four-day period, has been extended to
a fifth day in order to honor the asso
ciation’s more than 4,800 Associate
Members.
The NASSB has a dual membership:
State supervisors from the respective
states, the Commonwealth of Puerto
Rico and the Virgin Islands and more
than half of the nation’s state-char
tered banks.
General se s sio n s begin Tuesday
morning with a “call to order” by
President Nuesse. Addresses of wel
come will be extended by host com
missioner, W. Smoot Brimhali and by
Utah’s governor, Calvin L. Rampton.
President Nuesse will then deliver
the traditional “President’s Address,”
in which he will discuss his year in
office and, as is anticipated, offer a
“reappraisal of NASSB—its goals and

purpose.” He will be followed to the
podium by Jack T. Conn, the incom
ing president of the American Bank
ers Association.
A talk by Ransom Cook, chairman,
Wells Fargo Bank, San Francisco, en
titled “ Supervision Under the Dual
Banking System,” concludes the first
general session.
Following lunch that afternoon, the
convention will “adjourn” to the re
laxing setting of Treasure Mountain,
a nearby resort. A buffet dinner will
be served at the Lodge there.
Three speeches are scheduled for
Wednesday morning’s general session:

Northern Trust Promotions
Following a meeting of the execu
tive committee of The Northern Trust
Company, C hicago, a number of
changes in the official staff were an
nounced. Appointed assistant secre
tary in the trust department are: H.
Lee Cooper, Williard C. Kayser, Jr.,
Melvin A. Maves, and Clarence W.
Morton. Ernest H. Kraemer has been
named assistant cashier in the bank
ing department. Newly-elected to as
sistant managers in the operating de-

W eleo
J c me
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IOWA BANKERS
la

CO NVENTIO N
HEA D Q U ARTERS
The entire staff of the H o te l Fort Des
M oines will be "a t your service" to make
your convention stay in Des Moines a
most pleasant one. Iowa's leading and
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• The e x citin g " S te a k R a n ch " & Bar
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FOR COM PLETE INFORMATION
PAPER STOCK
INCORPORATED
OF IOWA

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D E S M O IN E S , IO W A 50312

N o rth w e ste rn Banker, O c to b e r , 1966

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

partment are Ralph A. O’Meany and
Ulrich W. Schliemann.
Dr. Arthur Upgren, Frederick R,
Bigelow, Professor of Economics, Macalester College, St. Paul.
K. A. Randall, chairman, Federal
Deposit Insurance Corporation.
Wallace F. Bennett, United States
Senator, Utah.
Senator Bennett, ranking Republi
can on the Senate Banking and Cur
rency Committee, will discuss “Bank
ing Legislation—1966.”
Sightseeing tours and the annual
golf tournament are scheduled for the
afternoon.
Associate Member Day is scheduled
for Thursday, October 20. Speakers
on the program will include Edward
F. Gee, president, State-Planters Bank
of Commerce and Trusts, Richmond,
who will be “ Looking at Loans . .
Henry C. Coleman, chairman, Com
mercial Bank at Daytonna Beach, Fla.,
who will state that “All Roads Lead
to Mecca,” and New York Superintend
ent of Banks Frank Wille.

Q. (Jack) M ASTELLAR
General Manager

1 ,0 0 0 ,0 0 0 th Charge
The statewide credit card system
operated by the Valley National Bank
of Arizona chalked up its 1,000,000th
“charge” recently. To commemorate
the occasion, the bank waived the en
tire credit card balance of Merle P.
McNally. Mr. McNally, a post office
employee and resident of Glendale,
Ariz., made the landmark charge pur
chase with his Valley Bank Credit
Card at a service station.
The Valley Bank Credit Card now
is honored from coast to coast.
A “student credit card” is being in
troduced by the bank, extending the
established Valley Bank Credit Card
service to college-age men and women
on campuses throughout Arizona.

Joins B o f A in New York
James Justin Trackara, a veteran
international banker, has joined Bank
of America International.
Bank of A m erica International,
headquartered in New York City, is
the wholly owned Edge Act subsid
iary.
He has been with the Chase Man
hattan Bank as a vice president.

New Harris Trust Officer

Another Friendly BOSS Hotel

•vV

A. John Armbruster, Jr., has been
elected trust officer of Harris Trust
and Savings Bank, Chicago. He joined
the Harris in 1956 after receiving a
B.A. degree from the University of
Michigan and an M.A. degree from the
University of Pittsburgh.

Recording & Statistical Co. Dept. 127-106
176 Broadway, New York, N.Y. 10038
Gentlemen:
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Name-

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

No
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BUSINESS

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Offices in:
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Boston

Columbus, Ohio
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Chicago

Federal Reserve Bank of St. Louis

‘VV:
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EGORDING &
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Detroit

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OMPANY
Executive Offices: 176 Broadway, New York, N.Y. 10038

To Travel Iowa-Nebraska
Don Anderson, assistant cashier,
who has been with Commerce Trust
Company since 1963, has been as
signed to the correspondent banking
department. He will work with Tom
Cannon, vice president, in the handling
of banking relaMoMSilipS 11) liiWll
R
fy and Nebraska.

Prime Short-Term Notes
$5,000-$5,000,000 Denominations
In all Maturities —5 to 270 Days
•
Discount or Interest Bearing

.!
In d e p e n d e n c e,
Kan. He gradu
ated from high
school in 1951 and
spent two years
A I in military serv£
"
ice from 1955 to
D. A N D E R S O N
TT
1957. H e w a s
branch manager in Kansas City for
Liberty Loan Company from 1959 until
1961, at which time he returned to col
lege to complete his education. In
1963 he graduated from Kansas State
College, Pittsburg, Kan., with a B.A.
degree in Economics.
Following graduation he entered
the management training program at
Commerce Trust, then was assigned
to the mortgage loan department
where he has served the past two
years.

Don Anderson,
N ow available for Delivery and Settlement in
33, is a native of

Minneapolis
•

For Current Rates and Orders
Telephone
(612) 330-8473

jamesT

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Joins Chicago Firm
Insured Credit Services, Inc., Chi
cago,underwriter
of improvement
loan insurance for banks, announces
the addition to its staff of Louis J.
Asterita, former deputy manager of
the American Bankers Association and
m o r e r e c e n tly
president of the
Chelsea National
Bank, New York.
Mr. A s te r ita ,
who has been ac
tive in the con
sumer credit field
for more than 30
years and is rec
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★ Receipts for Each Buyer
★ No Additional Listing
been elected to the position of vice
★
No
Posting
of
Accounts
★
Buyers Like It
president.
★
Speeds
Up
Settling
★
Pays For Itself
In making this announcement, Ar
★ Combats Skip Buyers
★ Versatile—-Compact— Practical
thur J. Frentz, president of Insured
Credit Services, Inc., stated that Mr.
See how it works in the pictures above.
Asterita’s activity would be centered
Plastic sorting cabinet is shown at left in left photo, mounted on steering wheel
in the East, although he would con
desk. Beside it is plastic, double clip listing board for the listing clerk. Photo
at right shows sorting cabinet and writing desk mounted on steering wheel for
tribute to the development of an ex
convenience of sales clerk. Sold on a Money Back Guarantee.
panded bank program nationally.

JET AGESALE CLERKING

Named to Trust Board
William H. Chisholm, president of
Oxford Paper Company, has been ap
pointed a member of the trust board

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

BLACK SALE SYSTEM
Telephone Nos. 536-2651 or 536-2522
FULLERTON, NEBRASKA
Write Us for Sample Sheets and Information
No rthw estern Banker, O c to b e r , 1966

' “T ren t

E m p lo y e e s —Conn

PAYS to treat your employees
ITright,
bank personnel men were

Backing up
some oi America’s
Most Successful
CommunityBank
TrustDepartments
The Studley, Shupert Trust
Investment Council’s staff
of investment specialists is
continuously behind every
Council Member Trust Offi
cer . . . supplying him, in
forming him, fortifying him
with a steady flow of practi
cal information which helps
him demonstrate that his
department (small as it may
be) offers its clients an in
vestment competence of the
highest order.
Council M embers from
coast to coast will tell you
that this unique back-up is
responsible in large measure
for their success.
Write for details about
Council membership.

TRUST

IN VESTM EN T
C O U N C IL

STUDLEY, SHUPERT
T ru st Investm ent C o u ncil
•
8 6 0 S u b u r b a n S ta tio n Bu ildi ng
Philadelphia, Pa. 1 9 1 0 3

DigitizedN ofor
FRASER
rthw
e ste rn Banker, O c to b e r , 1966
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

told in Chicago last month, for they
constitute one of the bank’s most ef
fective advertising media.
Jack T. Conn, vice president of the
American Bankers Association and
chairman, Fidelity National Bank &
Trust Company, Oklahoma City, added
that “no bank can have happy, pleased,
warm and ardent customers with dis
contented, disgruntled employees.”
Mr. Conn was the keynote speaker
at the ABA’s national personnel con
ference, sponsored by the association’s
personnel administration and manage
ment development committee.
“ If the empathy between customer
and bank employee is bad,” he de
clared, “no amount of good advertis
ing will prove corrective. You can’t
have unhappy employees and happy
customers.”
It is important for bank personnel
men to know what their employees
think and say about the bank, he as
serted.
“ If your employees tell their friends
and acquaintances the management of
the bank is niggardly, unconcerned

about their welfare and solely dedi
cated to increasing bank profits and
their own salaries,” Mr. Conn said,
“ then you can advertise the ‘friendly
bank’ until hell freezes over without
changing by a jot or tittle the beliefs
of the listeners.”

Gamble Reports Gains
Earnings of Gamble-Skogmo, Inc.,
rose by 11 per cent on a sales increase
of 8.9 per cent in the first half of the
fiscal year, Carl C. Raugust, company
president, said recently. He described
the period as “one of the best six
months in company history.”
Sales for the six months ending July
31 totaled $304,352,396 as against $279,373,428 for the half last year. Net in
come, after taxes, amounted to $4,189,045 or 84 cents a share.

J. Stewart Baker
J. Stewart Baker, former president
of the Chase Manhattan Bank, died
recently at Morristown Hospital, N. J.
He was 73 years old.
When Chase National Bank and the
Bank of the Manhattan Company
merged on March 31, 1955, Mr. Baker
became chairman of the executive
committee and president of Chase
Manhattan. He retired on December
31, 1957.

Move Up at Chase

Arizona is
Valley Bank
Territory

Howard R. Schultz and William W.
Shine have been named vice presi
dents of the Chase Mathattan Bank,
N.A., New York. Both men are in the
bank’s systems and standards divi
sion.
In other areas of the bank, Thomas
J. Carter and David A. Crowell have
been named vice presidents. Mr. Car
ter is in charge of credit administra
tion. Mr. Crowell is branch executive
in the Madison Square office.

Heads Robert Morris
D. Rice Longaker, vice president,
Provident National Bank, Philadel
phia, was elected to the presidency of
Robert Morris Associates in the asso
ciation’s annual meeting.
James H. Styers, senior vice presi
dent, Wachovia Bank & Trust Com
pany, Winston-Salem, N. C., is RMA’s
newly elected first vice president.
Succeeding Mr. Styers as second
vice president will be Lloyd A. Bimson, president, The Arizona Bank,
Phoenix, Ariz.
Robert Morris Associates is the na
tionwide association of commercial
bank loan officers and credit men.

For men who worry
about your business
almost as much
as you do...

TRUST NORTHERN
T ru st N orth ern to m ake y o u r
problems our problems.
Perhaps you’re concerned about
new business. You want more of it.
Our new business specialists will
work with you— closely— suggest
ing ways to develop a new savings
promotion, an officer call program,
an employee incentive campaign,
advertising and public relations
aids, or any one of a number of
other ways to develop business.
Whether it’ s help with new bus
iness, portfolio management, in
vesting short term funds or a diffi-

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

cult loan situation, Trust Northern
to have the men who have the skills
to help when help is needed.
Try our brand of correspond
ent banking service, it’s personal
ized and flexible. C all or write
Mr. N. Hall Layman, V ice Presi
dent, Correspondent Banking D e
partment.

NORTHERN
TRUST
COMPANY

BANK

NORTHWEST CORNER LA SA LLE & MONROE
C hicag o 6 0 6 9 0

• Financial 6 -5 5 0 0

* Member F.D .I.C .

N o rthw e ste rn Banker, O c to b e r , 1966

16
Select Mosier Finalists

z ,

World's Largest Underwriter
and Distributor
of Institutional Securities

IMPROVE
YOUR
EARN IN GS

Three attractive bank tellers, repre
senting the states of Ohio, South Caro
lina and Florida, have been selected
by a panel of tel
evision personali
ties as finalists in
the ninth annual
contest to pick
M iss D riv e-In
Teller, sponsored
by The Mosler
Safe Company.
The finalists are
Mary Jane Zahn
M IS S JO H N S O N

th e

tional

F lr S t

Bank

IN S T IT U T IO N A L
BONDS
and
M ISS SALER N O

M ISS ZA H N

Mansfield, Mansfield, Ohio; Gloria Jean
Johnson of the Southern Bank &
Trust Company, Greenville, S. C., and

Those who know

• Exceptional yields offer
attractive income, ready
marketability, and in the
case of bonds, serial
maturities to fit the needs
of any portfolio.

MINNEAPOLIS

Current yields range from
5 to 6 '/4%. Paper maturities
3 months to 1 year. Bonds,
6 months to 20 years.
Accommodations, For Friend
liness, For Budget Rates, For
Resort-like Atmosphere. Eas
ily Accessible to all High
ways.
* 105 Delightful Rooms and
Suites
* Heated King-Size Swim
ming Pool
* Complete Hotel Service
* 24-Hour Switchboard
* Free TV
* Play Area for Children
* Baby Sitter Service
EXCELLENT FOOD
in Redwood Dining Room,
Coffee Shop, Cocktail Lounge.

Contact our nearest office.

B. C. ZIEGLER
AND COMPANY
W est Bend, W isconsin

Branch Offices :
San Francisco • New York
Chicago • St. Louis • Toledo
Minneapolis* Memphis • Dubuque
Milwaukee and other principal
cities of Wisconsin

--------

, : r.z

N ofor
rthFRASER
w e ste rn Banker, O c t o b e r , 1966
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ample Free Parking in
Front of your Room

Single
$ 8.50 to $ 9.50
Double
$12.50 to $14.00
Children Under 12 FREE in same
room with Adults.
Wire or Write for Reservations
Phone (Area 612) 588-4665.

HOLIDAY MOTOR HOTEL
Jet. Highways 100 and 55 West
Minneapolis 22, Minnesota
Minutes from Downtown —
15 Minutes from Met Stadium,
Home of the Twins and Vikings
20 Minutes from Int. Airport

-W

V-

N a‘

with

C O M M ER C IA L
PAPER

Mazie Salerno of The First National
Bank at Orlando, Orlando, Fla.
Bankers attending the American
Bankers Association Convention in
San Francisco in October will have the
opportunity to meet the finalists who
will be presented at the Mosler Ex
hibit and hospitality suite during the
convention.
The winner of the contest, who will
be selected by a national mail vote of
bankers following the convention, will
be awarded an all-expense vacation for
two at San Andres Island in the Car
ibbean.

21 Continental Promotions
Directors of Continental Illinois Na
tional Bank and Trust Company have
promoted 21 officers and elected one
new officer in five departments of the
bank.
In the commercial banking depart
ment, Charles W. Battey, Jr., was ad
vanced to vice president from second
vice president, and Gerald K. Berg
man, Edwin G. Jackson, Jr., G. Wil
liam Marquardt, Donald H. Myers,
Hollis W. Rademacher, and Caren
L. Reed moved up to second vice presi
dents from assistant cashiers. James
C. Cordell was elected second vice
president.
P. Jordon Hamel was advanced to
vice president from secretary in the
trust department. Frank M. Wright,
Jr., rose to vice president from second
vice president. Donald H. Remmers
became secretary after being second
vice president, and Harvey B. Stevens
was named second vice president from
investment officer.
In the bond department, David G.
Taylor was advanced to vice president
from second vice president, and Ed
ward J. Murphy went to second vice
president from assistant cashier.
International banking department
men advanced were John E. Jones to
vice president from second vice presi
dent, and Robert L. Isett, Jr., to Swiss
representative from assistant Euro
pean representative.
In the operating department, Peter
J. Laninga, William W. McKoane, Gail
M. Melick, and George S. Clough rose
to vice presidents from second vice
presidents, and Fred J. Bretz and
John B. Tingleff were advanced to
second vice presidents from assistant
cashiers.

On Bankers Trust Board
Kenneth Rush, president of Union
Carbide Corporation, has been elected
a director of Bankers Trust Company,
New York, it was announced recently
by William H. Moore, chairman of the
board.

-4

Whenever we meet a banker who says that to us, we are always
pleased to hear it because bank insurance people is exactly what we are.

Some
insurers
insure
banks

also.
We insure banks only.
In the course of doing it for 47 years,
we have come to know the banking
business and how to insure it.
As banking grows more diversified,
more and more bankers are looking to
Scarborough to cover their burgeoning
risks. In the past 5 years alone, they
have more than doubled the amount of
insurance placed with us.

In exchange, we have provided what
many have written to tell us is the
broadest, soundest, and best serviced
insurance their banks have ever enjoyed.
If you are inclined to believe that
your own bank's operations will be
protected better, and more economically
when insured by professional bank
insurance specialists, get in touch with

S
the I f bank insurance people
SCARBOROUGH & COMPANY / BANK I NSURANCE S I NCE 1919 / F I R ST NA T I ONA L BANK B UI LDI NG. CHICAGO 3, I L L I N O I S

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

N o rthw e ste rn Banker, O c to b e r , 1966

every 12 secones

someoneiSHospnauzen

LOW COST * HOSPITAL * MEDICAL
* LIFE INSURANCE
Underwritten By

B A NKE R S J& jfe COMPANY
OES

This

MOINES,

IOWA

Poster

A Real SERVICE For Your Depositors
T h e m ore than 1000 midwest banks who display this poster take pride in
knowing they are offering to their depositors an important, low-cost H ospital,
Surgical and Life Insurance plan.

T h e savings attributable, because o f bank

cooperation in the simplified collection processes, are reflected in benefits and
costs o f the insurance.

Service is offered only through an established local agent recom m ended by
you r bank.

T h e plan is underwritten by the Bankers Life C om pany o f

Des M oines, Iowa.

If your bank is not yet offering this outstanding “ Family Insurance” service
for your customers, get the details from the . . .

OLD NORTHWEST AGENCY
7703 Normándole Road — Minneapolis, Minnesota
B

N o rth w e ste rn Banker, O c to b e r , 1966

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

C O M P A N Y

D ES

55424

M O I N E S ,

IOWA

19
M-F Production Starts
A year’s preparation was culminated
last month in the start of production
for Massey-Ferguson’s North Ameri
can Implement Plant in Des Moines.
Following closely will be the open
ing, in October, of a mixing ware
house, which adjoins the factory.
The 412,500 square-foot factory, in
its first year of operation, will pro
duce 28 different farm implements for
use throughout North America and in
other areas of the world.
The mixing warehouse, which has
157,500 square feet of storage space
under roof and 110,000 outdoors, will
receive MF’s full line of tractors, com
bines and other farm machinery from
this and other North American manu
facturing facilities. It will then ship
mixed selections of implements to
dealers in North American and some
world markets and other M-F prod
ucts to dealers in the midwestern
U. S.
Production, which includes welding,
painting and assembling implements,
during the first few months of the
factory operation will concentrate on
planters, grain drills and rotary hoes.
Renovation of the factory has in
corporated modern production tech
niques. It will have 350 production
workers and an annual production
rate of $10,000,000.

A lot can develop

in a short period o£ tim e

CUTTING RIBBO N of first equipment as
sembled in Des Moines plant are (from
le f t ): Donald D. Dogherty, general factory
manager; Robert E. Kidder, vice president
manufacturing, and R. K. Hall, vice presi
dent planning and procurement, all at
Massey-Ferguson Des Moines headquarters.

Robert E. Kidder, vice president
manufacturing, announced the promo
tion of Donald D. Dogherty to general
factory manager during ceremonies
marking completion of the first piece
of equipment from the newly-opened
assembly line. Mr. Dogherty has been
general p r o j e c t m an ag er in Des
Moines. Mr. Kidder also announced
the appointment of William A. Dey as
manager of the distribution ware
house.

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

If you need a new facility, we can turn your vacant lot into an
attractive bank, fully-equipped and ready to operate, in a matter
of a month or so. The bank shown above is just one of the
many types and styles which LeFebure can develop for you. And
inside, LeFebure offers a wide choice of efficiency-designed
equipment and fixtures. We tailor the operation to fit your needs
and your future.
LeFebure Factory-Built Banks can be supplied in every price
range from $12,000 up — fully equipped. Permanent or re
locatable.
Interested? Let your LeFebure representative give you all of the
details. Or write LeFebure Corporation, Cedar Rapids, Iowa 52406.

F U L L

S E R V I C E

T O

T H E

F IN A N C IA L

FIE LD

Northwestern Banker, O c t o b e r , 1966

American of Chicago Buys
Tele-Data Corporation
American National Bank and Trust
Company of Chicago has purchased
Tele-Data Corporation, Chicago, to sup
plement its existing electronic data
processing facilities, it was announced
by Robert E. Straus, American Na
tional’s board chairman.

Higginson, Jr. (left), pres, of
Tele-Data Corp., demonstrates operation of
an IBM teller machine to Robert E. Straus,
chmn. of American Natl. B&T, Chicago.
The machine is directly connected by tele
phone line to the bank’s computer system
for transmission of data.
John P.

Russell V. Peterson can help
increase your loan capacity . . . today!
H ere's a proposition that can help you make a loan—
which you thought couldn't be made!
How? W ith the help of St. Paul Term inal W arehouse.
W e provide par-excellence protection for the lender.
W hen your customer's inventory can be converted
into prime collateral, there is no need to turn that loan down.
Instead turn to SPT.
Through field warehousing, St. Paul Term inal W arehouse
provides Preferred W arehouse Receipts, the best
collateral for credit extension beyond open line limits.
Keep the many benefits of this valuable service
part of your bank. Pick up the phone and call
Russell V. Peterson today. Put SPT to work for you.

Russell V. Peterson, 612 Farnham Building
Omaha, Nebraska 68106, Phone: 341-7190
Or if more convenient,
Wesley G. Johnson, 520 Empire Building
Des Moines, Iowa 50309, Phone: 282-1208

ST. P A U L T E R M I N A L
WAREHOUSE COMPANY
Offices in principal cities
4-25

E a st

Northwestern Banker, O ctober, 1966

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

8th

Street

•

St.

Paul,

M innesota

A fully operational, on-line electron
ic data processing service center, TeleData makes it possible for tellers in
any client financial institution regard
less of its geographical location to
communicate directly with a computer
in the company’s office via regular
voice-level telephone lines. Data fed
into the illustrated teller’s machine on
the client institution’s premises are
c o n v e r t e d into telephone signals.
These are carried to Tele-Data’s com
puter where the information is stored
and interpreted. In a fraction of a
second, the computer reports back its
findings, and prints the appropriate
information directly on the customer’s
passbook or loan record.
Commenting on the recent acquisi
tion, Mr. Strauss stated: “American
National can now offer its customers
an operating, on-line computer system
in addition to the various electronic
data processing services we have pro
vided since the completion of our
own computer center in 1961. With
the Tele-Data facilities added to our
existing equipment, the bank will have
a $3.5 million computer complex avail
able to provide numerous accounting
and related services.”

CONSIDER THIS
YOUR TICKET ...
E. F. BUCKLEY
Chairman
of the Board,

BERNHARD C.
GRANGAARD
President

To Meet The All Star Cast

COMMERCIAL DEPARTMENT

of men and women who play leading
roles in serving you . . .
The officers of Central National Bank . . .

E. V. BLIQUEZ

IRWIN ABRAM

Vice President

JOHN J. BUCKLEY

A. B. DRESSLER

RAY G. JOHNSTON

CLARENCE N. DICKSON

W. B. GREAVES

Vice President

Assistant Cashier

BUSINESS DEVELOPMENT AND PUBLIC RELATIONS

INVESTMENT DEPARTMENT

IVAN L. JOHNSON

SHERRY R. FISHER

GEORGE T. NELSON

T. WARD PHILLIPS

MRS. MARY HOLSTAD

Vice President

Assistant Vice President

Vice President

Assistant Cashier

BANK ADMINISTRATION

WA
H.
C. WINDER
Digitized Vice
for FRASER
President & Cashier
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ROGER HICKS

HOMER S. TESDELL

DEWEY TULLIS

L. M. TESDELL, JR.

Assistant Cashier

Data Processing Officer

THAT’S WHAT WE W OULD LIKE . . .
during the 80th annual
convention of the Iowa
Bankers Association in Des Moines.
Please pay us a visit.
CENTRAL NATIONAL BANK AND TRUST COMPANY
FIFTH AND LOCUST, DES MOINES, IOWA

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

member f e d e r a l d e p o s i t in s u r a n c e c o r p o r a t io n

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

To Serve You Better...
when our new building is completed.

While you’re in Des Moines for the Iowa Bankers’ convention . . . why not catch
a sneak preview of our new building site at 6th and Locust Streets?
W e believe you’ll agree that the
will serve to beautify the
set a precedent in stimulating an
powerful business potentials

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

new Central National Bank building not only
downtown Des Moines area . . . but will
increase of interests and a re-awakening to the
the heart of our city has to offer.
Sincerely,

President

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

National Bank Deposits Up
Deposits at national banks rose to
a record level of nearly $200 billion as
of June 30 call date, it was announced
by Comptroller of the Currency James
J. Saxon. The mid-year total of $197,772,559,000 represented an increase of
$26.2 billion, or 15.3 per cent, from the
same date last year. The rate of
growth has slowed considerably in re
cent months, however, as deposits rose
by only 2.0 per cent during the first
six months of 1966.
Total loans as of June 30, 1966,
amounted to $123,201,120,000, an in
crease of 20.7 per cent from the same
date a year ago and a 5.5 per cent in
crease since December 31, 1965.
The substantial increase in loans
pushed the ratio of loans to deposits
62.3 per cent, up from the 59.5 per
cent figure of a year ago.
About 12.6 per cent of the total de
posits of national banks are accounted
for by certificates of deposit.

Nominate Investment Prexy
H. Lawrence Bogert, general part
ner, Eastman Dillon, Union Securities
& Company, New York, N. Y., has
been nominated for president of the
Investment Bankers Association of
America.
The association will act on the slate
at its annual convention, November
27-December 2, 1966, at the Hollywood
Beach Hotel, Hollywood, Fla. The
new officers will be installed on De
cember 1.

To Assist Comptroller
Abraham A. Dash has been ap
pointed special assistant to the Comp
troller of the Currency, Comptroller
James J. Saxon announced recently.
Mr. Dash, who joined the Comptrol
ler’s staff a year ago, will coordinate
litigation policy and handle special in
vestigations for the office.

Name Fiscal Agent
Charles J. Scanlon, president of the
Federal Reserve Bank of Chicago,
has announced that Jack P. Thomp
son has been appointed a vice pres
ident of the bank in charge of the
bank’s responsibility as fiscal agent
for the U. S. Treasury effective Octo
ber 1, 1966. Mr. Thompson has been
in government service since 1935, most
of the time in the Department of the
Treasury and since 1957 has been
Deputy Commissioner of Public Debt
in Chicago. He succeeds Clarence T.
Laibly, vice president, who is taking
an early retirement after 48 years of
service.

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

When this man signed a check...
La Monte was there to protect
The history of Safety Paper began in 1871 when Mark Twain
was writing of the Mississippi and George La Monte was
developing a paper designed to protect checks and documents
against fraudulent alteration. This original product has been
continually improved upon for over 95 years, not only in
quality and appearance, but in printabiIity and sortability to
meet the demands of the latest high-speed electronic sorters
and computers. That’s why today, as in Mark Twain’s day,
more banks specify La Monte than any other safety paper.

F I R S T IN S A F E T Y P A P E R S
T H E W A V Y LINES ®

LA M O N T E D IV IS IO N , N U T L E Y , N. J.

ARE A LA M O N TE TR A D E M A R K

• B U R L IN G T O N , IOW A

G E O R G I A - P A C I F I C

• G EO R G E LA M O N TE & SON LTD ., C A N A D A

C O R P O R A T I O N
N o rth w e ste rn Banker, O c to b e r, 1966

26
New LaSalle Titles
Adoption of new titles for its offi
cers who directly serve the public has
been announced by LaSalle National
Bank, Chicago, following a meeting of
the bank’s board of directors.
According to Chairman Harold Meidell and President Milton F. Darr, Jr.,
LaSalle National officials will now
carry titles which more effectively describe their duties and responsibilities
and actual functions within the bank.
Messrs. Meidell and Darr said the
new titles replace such former designations as assistant cashier and assist
ant trust officer which no longer will
be used.
New designations, which will apply
to 30 officers, are: Automation officer,
automation services officers, commer
cial loan officer, credit department offi
cer, customer service officer, install
ment loan officer, investment depart
ment officer, operations officer, probate
officer, purchasing officer, real estate
loan officer, real estate officer, and sav
ings department officer.
According to Messrs. Meidell and
Darr, the conversion from historical,
non-meaningful designations to more
functional titles was undertaken so as
to enable customers to better locate
and identify those officials who can
most effectively and efficiently serve
their needs.

Plan Trust Conference

ARE YOU LETTING BACK DOOR INCOME
SNEAK OUT WHILE YOU WATCH THE FRONT DOOR?
It is not uncommon for banks to concentrate so much on their
loan and fee income that they overlook opportunities to increase
their in vestm en t incom e. T h a t’s where N ational B ou levard’s
trained portfolio analysts can make an important contribution to
your earnings. T h ey ’ll make an in-depth study of your investment
portfolio before suggesting anything specific. That way they can
tailor their recommendations to your needs and strengthen your
entire investment program. Are National Boulevard representa
tives good portfolio analysts? Correspondent banks for whom we
manage portfolios have shown net earnings increases of up to
46.3% . And take a look at National Boulevard’s own performance
in the bond market. We have an impressive average of 4.9% pre
tax investment return over the past six years. Are you interested
in this kind of individualized attention? You can get the full story
o f ou r in v e s tm e n t
p o r t f o l i o a n a ly s is
BOULEVARD BANK
N B WNATIONAL
R IG L E Y B U IL D IN G • 4 0 0-4 10 N M ic h ig a n Ave. P h o n e 4 6 7-4 10 0
s e r v ic e s b y c a llin g
Charlie Schoeneberdpr at,

N ofor
rth FRASER
w e ste rn Banker, O c to b e r , 1966
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Four panel discussions centering on
real estate, personnel selection, mar
keting of services, and employee bene
fit trusts will be among the features
of the 35th Mid-Continent Trust Con
ference to be held in Chicago, Novem
ber 17-18. Sessions will be held at
the Drake Hotel.
Trustmen from 19 midwestern states
are expected to register for the con
ference. Host for the meeting is the
Corporate Fiduciaries Association of
Chicago.

Schedule Tax Seminar
A seminar entitled Federal Income
Taxation has been planned for Thurs
day and Friday, October 13-14, at the
Gateway Hotel in St. Louis, Mo. Tail
ored to the needs of bankers as a refresher or to acquaint participants
with fundamentals in a new area of
responsibility, the meeting has been
scheduled by NABAC, The Association
for Bank Audit, Control and Opera
tion.
Additional information about the
seminar is available by writing to:
The Registrar, NABAC Educational
Division, P. O. Box 500, Park Ridge,
111. 60068, indicating Seminar 3201-03.

I f you want to know
what’s going on in
Southern California,
ask one o f these bankers.

Nicholas Price
Asst. Vice President

Richard D. Frey
Asst. Cashier

They are well-informed.
They are articulate.
They represent the largest
bank headquartered in Southern
California. Get to know them.
Make your financial partner

SECURITY FIRST NATIONAL BANK
MEM BER F ED ER A L DE PO SIT I N S U R A N C E CO RP OR AT IO N

Head Office: Sixth & Spring Streets, Los Angeles, California. Telephone: 620-6211
Over 335 banking locations serving Southern California

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No rthw e ste rn Banker, O c to b e r , 1966

wñ

W e k n o w C a lifo r n ia b u s in e s s fro m so u p

to n u t s .
Fish, fowl, fruit — there isn’t a course on the table
that Bank o f Am erica doesn’t serve. Last year we
financed nearly half o f California’s agricultural pro
duction. We made crop loans on everything from
avocados to zucchini, leased tuna boats and tomato
harvesters, and worked with processors, packers, and
freezers. Every other kind o f business grows with our
help, too. W ith alm ost 9 0 0 bran ch es th rou ghou t
N o rth w e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

California, Bank o f Am erica is where you want it,
when you want it: on the spot. F or com plete corre
spondent service, get in touch with our National
Division, 300 M ontgomery Street in San Francisco,
or 650 South Spring Street in Los Angeles.

B A N K O F A M E R IC A

NATIO NAL TRUST AND SAVINGS ASSOCIATION • MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

A. K. D A V IS

J. T. CONN

K. A. R A N D A L L

DR. C. E. W A L K E R

A. W . R O B E R T S O N

T. L. A S H L E Y

San Francisco Will Host A .B .A .
9 ,0 0 0 Bankers and Wives Expected for 92nd Convention, October 2 3 -2 6

OP officials of the three federal bank supervisory
agencies and two noted Congressional leaders will
address various sessions of the 92nd annual conven
tion of the American Bankers Association in San Fran
cisco, October 23-26. Approximately 9,000 bankers, their
wives and representatives of service firms are expected
to attend the convention.
Archie K. Davis, ABA president and chairman of the
board, Wachovia Bank and Trust Company, WinstonSalem, N. C., will preside at the first general business
session on Tuesday morning, October 25, and will also
give his president’s address. Featured speaker at the
opening session will be K. A. Randall, chairman of the
Federal Deposit Insurance Corporation. The third speak
er will be Dr. Charls E. Walker, ABA executive vice presi
dent. Report of the nominating committee and election
of officers will complete the morning session.
Jack T. Conn, chairman of the Fidelity National Bank
and Trust Company, Oklahoma City, Okla., is scheduled
to advance from vice president to president of the ABA.
J. Howard Laeri, vice chairman, First National City Bank,
New York City, is the only announced candidate for ABA
vice president. It is expected that Louis E. Hurley, presi
dent, The Exchange Bank and Trust Company, El Do
rado, Ark., will be re-elected by the executive council to
a second one-year term as treasurer.
Speakers for the second general business session, to be
held Wednesday morning, October 26, had not been ananounced at press time.
The two Congressional leaders who will address divi
sion meetings are Sen. A. Willis Robertson of Virginia,
chairman of the Senate Banking and Currency Commit
tee, and Rep. Thomas L. Ashley of Ohio, member of the
House Banking and Currency Committee.
The four divisional meetings will be held throughout
Monday. Workshops will be presented Tuesday after
noon in three simultaneous sessions. The topics to be
covered are “Unions in Banking—What’s Ahead, What
to Do,” “Federal Legislation—Banking and the Congress,”
and “ The Automated Bank of the Future.”

One of the entertainment features at the convention
will be a concert presentation by the 375-voice Salt Lake
Mormon Tabernacle Choir. The choir’s history dates to
1847 and in recent years it has toured Europe giving con
certs in numerous countries there.
The program announced by Mr. Davis follows:

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Federal Reserve Bank of St. Louis

Monday, October 2 4 , 196 6
Savings Division

A.M.
9:30 Civic Auditorium.
Presiding — D. James Pritchard, president, ABA
Savings Division, and vice president, Society Na
tional Bank, Cleveland, Ohio.
Address of the President—Mr. Pritchard.
Report of the Nominating Committee; Election; In
stallation of Officers.
Address — The Hon. J. Dewey Deane, member,
Board of Governors, Federal Reserve System.
Address—Dr. Martin R. Gainsbrugh, senior vice
president, National Industrial Conference Board.
Address—Larry Ronson, vice president, First Na
tional Bank of Hawaii, Honolulu.
State Bank Division

9:30 Civic Auditorium.
Presiding—G. Russell Clark, president, ABA State
Bank Division, and chairman, Bank of North Amer
ica, New York.
Address of the President—Mr. Clark.
Report of the Nominating Committee; Election; In
stallation of Officers.
Address—The Hon. William W. Sherrill, director,
Federal Deposit Insurance Corporation, Washing
ton, D. C.
Address—Hon. J. F. M. Slade, newly-elected presi
dent, National Association of Supervisors of State
Banks (to be elected in week prior to ABA con
vention), and supervisor of banks, State of Oregon.
Trust Division

9:30 Civic Auditorium.
Presiding—Paul I. Wren, president, ABA Trust
Division, and president, Old Colony Trust Com
pany, Boston, Mass.
Address of the President—Mr. Wren.
Report of the Nominating Committee; Election; In
stallation of Officers.
National Bank Division

P.M.
2:00 Civic Auditorium.
Presiding—-Paul Hinkle, president, ABA National
Bank Division, and president, The Charleston Na
tional Bank, Charleston, W. Ya.
(Turn to next page, please)
N o rth w e ste rn Banker, O c to b e r , 1966

G. R. CLARK

D. J. PR ITCH AR D

P. I. W R E N

Address of the President—Mr. Hinkle.
Report of the Nominating Committee; Election; In
stallation of Officers.
Address—James J. Saxon, Comptroller of the Cur
rency, Washington, D. C.

Tuesday, October 2 5 , 1966
First General Session

A.M.
9:30

Convention Hall—Civic Auditorium.
Presiding—Archie K. Davis, ABA president, and
chairman of the board, Wachovia Bank and Trust
Company, Winston-Salem, N. C.
Invocation.
Address of the President—Mr. Davis.
Report of the Nominating Committee; Election of
Officers.
Report of Executive Vice President Dr. Charls E.
Walker.
Address—The Hon. K. A. Randall, chairman of the
board, Federal Deposit Insurance Corporation,
Washington, D. C.

P.M.
2:00

Civic Auditorium.
Three Simultaneous Workshops—Rooms to be an
nounced and posted.

“Unions in Banking— What’s Ahead, What to Do”

Presiding—Alfred E. Langenbach, Chairman, Per
sonnel Administration and Management Develop
ment Committee, A.B.A., and vice president, First
National Bank of Chicago.
“Bank Unionization Today”—George B. Ward, Di
rector, P.A.M.D. Committee, A.B.A.
“Current Trends in Union Activities”—A1 Hartnett,
Labor Relations Consultant, Silver Spring, Md.
“ Stop, Listen, Think—And Make Like a Duck”—
James D. Moore, J. D. Moore Organization, Park
Ridge, 111.
“An Ounce of Prevention”—Dr. George S. Odiorne,
Director, Bureau of Industrial Relations, Graduate
School of Business Administration, University of
Michigan, Ann Arbor.
Federal Legislation—Banking and the Congress

Presiding—Lewellyn A. Jennings, chairman, Fed

J. D. D A A N E

W . W . SH E R R IL L

No rthw e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

A. E. L A N G E N B A C H

P. H IN K L E

J. J. S A X O N

J, H. L A E R I

eral Legislative Committee, and president, The
Riggs National Bank, Washington, D. C.
Moderator—Charles R. McNeill, Director, A.B.A.
Washington Office.
Remarks—Orman S. Fink, Minority Staff Member,
House Banking and Currency Committee, Wash
ington, D. C.
Leo H. Irwin, Chief Counsel, House Ways and
Means Committee, Washington, D. C.
John F. Lee, General Counsel, Federal Deposit In
surance Corporation, Washington, D. C.
Wilfred H. Rommel, Assistant Director for Legisla
tive Reference, Bureau of Budget, Washington,
D. C.
The Automated Bank of the Future

“Credit Cards and the Changing World of Con
sumer Finance”—Robert K. Wilmouth, Chairman,
Automation Committee, A.B.A., and vice president,
First National Bank of Chicago.
“ Touchtone Banking”—A film.
“ The Automated Bank of the Future”—A stage
presentation.
Narrator—Dale L. Reistad, Director of Automation,
A.B.A.
“Automation’s Impact on the Bank”—Dr. Paul S.
Nadler, Associate Professor of Finance, Graduate
School of Business Administration, New York Uni
versity, New York, N. Y.

Wednesday, October 2 6 , 1966
Second General Session

A.M.
9:30 Civic Auditorium.
Presiding—Mr. Davis.
Report—Official Acts and Proceedings of the Exec
utive Council.
Report of the Resolutions Committee.
Inauguration of Officers.
Addresses by two speakers to be announced.
Adjournment of 92nd Annual Convention.
* * *
This will be the seventh time the American Bankers
Association has met in San Francisco. The last meeting
held there was in 1961.—End.

L. A. JEN N IN G S

R. K. W IL M O U T H

P. N AD L ER

31
glance from a circling
A TjetFIRST
San Francisco may strike New
Yorkers or Londoners or Tokyoites as
surpisingly small.
But San Francisco’s size is an asset,
as one soon sees. Being confined to
a 46 square-mile fingertip between
the Pacific Ocean and San Francisco
Bay keeps “The City” (as it’s known
to northern and central Californians),
like Manhattan, a city. Its compact
ness, besides putting everything with
in easy range, has contributed to the
polished urbanity which makes San
Francisco unique among cities west of
the Hudson and more akin to certain
European capitals.
It’s remarkable how much of the
world is windowed on the bay. The
city’s full of exotic vignettes, of
sights and scents and flavors one trav
els around the globe to savor.
The way the hills rise steeply out of
a sparkling, island-studded bay is rem
iniscent of Hong Kong with its peak
and many-splendored vistas. So are
the occasional web-sailed junks that
dot the bay, a recent vogue among
Bay Area boat owners who import

San Francisco
" E v e r y b o d y 9# F a v o r ite C it y 99
them from Hong Kong. At other
times, when the harbor’s a windwhipped green, San Francisco assumes
a Nordic look not unlike Stockholm
casting cool reflections on the waters
of Lake Malar where it meets the
Baltic.
ritH E Embarcadero and the oceanJL going vessels which tie up at its
more than 40 deep-water piers are a
direct link with the faraway places
that have helped to shape San Fran
cisco’s personality.
Union Square, the well-manicured
park which is the hub of San Fran
cisco’s shopping district, has some
thing of the same formal elegance as
Paris’ Place Vendóme. Like Vendóme,
it has a towering, statue-topped shaft
at its center and is surrounded by
smart stores, fine hotels and fashion
ably-dressed shoppers. In some re
spects, the park also resembles Lon
don’s Trafalgar Square, except that its
monument commemorates Commodore
Dewey’s victory at Manila Bay instead
of Lord Nelson’s.
The European influence is also evi
dent in the lines of another local land
mark, the 66-year-old Ferry Building
at the foot of Market Street. Before

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Federal Reserve Bank of St. Louis

the advent of San Francisco’s two
great bridges, this tower-topped struc
ture was a busy terminal for the bay
ferryboats which carried as many as
50 million commuters a year. Archi
tect Arthur Page Brown modeled it
after the Giralda Tower in Seville, but
from its turret detail one fancies his
gaze had also rested on Britain’s Par
liament clock tower, better known as
“Big Ben.”
Though uniquely San Franciscan,
the toy-like cable cars which clatter up
and down Nob and Russian Hills pro
duce the same exhilarating airborne
sensation as the funiculars and cog
wheel railways that lace the lower
Alps.
AN FRANCISCO’S Chinatown lifts
the bamboo curtain on a now in
accessible continent. Besides being
the largest Chinese settlement outside
of Asia, it is the ethnic capital of
Americans of Chinese descent, more
than 50,000 of whom make their homes
in San Francisco. Outwardly, this selfcontained conclave is a colorful con
glomeration of pagoda-roofed build
ings, lantern-strung streets, elaborate
ly ornamented balconies and dragonentwined lamp posts . . . an intricate

complex of exotic shops, restaurants,
tea rooms, temples and venerable
Chinese business institutions . . . a
babel of many dialects. Behind this
not-so-inscrutable face are preserved
the centuries-old customs, culture and
art of China.
Just beyond Chinatown is North
Beach, known, with good reason, as
“Little Italy.” There are 55,000 San
Franciscans of Italian extraction and
they all gravitate toward “The Beach.”
Signs on the building fronts read fior
ista, farmacia, panatteria, pizzeria, ris
torante, etc. The markets are crammed
with salami, proscuitto, pasta, provo
lone, ricotta, mozzarella, chianti. In
some you’re apt to feel alien if you
don’t speak Italian. W a s h i n g t o n
Square, opposite the Church of St.
Peter and Paul, could be the piazza in
any town in Italy. Its park benches
belong, by tacit agreement, to the
neighborhood patriarchs who assem
ble there to sun, doze, philosophize
and watch the bambinos at play on
the grass. Less sedentary oldsters
meander down to Aquatic Park for a
game of bocce ball on the outdoor
courts there. Several North Beach
cabarets feature operatic entertain
ment with the signers showing a na
tive partiality to Donizetti, Verdi, Bel
lini and Puccini.
has a JapaneseSANtown,FRANCISCO
too. While Japanese imSAN FRANCISCO . . .

(Turn to page 62, please)
N o rthw e ste rn Banker, O c to b e r , 1966

ACT I
“ The First 75 Years”
Time: February 10, 1866.
Place: Omaha, Nebraska Territory.
Scene 1

IS 6 6

1866-1884

Time: February 10, 1866.
Place: Omaha, Nebraska Territory.
Action: In the post-Civil War setting of Omaha, then a
pioneer outfitting town of about 15,000 population, from
which immigrants began their long treks westward across
the Great Plains, The Omaha National Bank came into
being on February 10, 1866, with national bank charter
1633. The following July 2, just three years after passage
of the National Banking Act, the fledgling bank opened
its doors in a one-story frame building at the northeast
corner of 14th and Douglas Streets.
Omaha was still in Nebraska Territory and it would be
another year before Nebraska achieved statehood in 1867.
With the courage of their convictions, and the business
experience and knowledge gained from more than a dec
ade in the land and gold-buying business in the Territory,
the new owners started their bank in this small building
of 20 by 40 feet. They had $50,000 capital, experience,
business contacts and hopes. Deposits on opening day
were an encouraging $15,313!
The frontier city was in a population explosion of excit
ing proportions. Immediately upon the conclusion of the
war between the states, Congress decided to subsidize
the proposed Union Pacific Railroad, and President Lin
coln decided upon Omaha as its eastern terminus. That
was 1865. The railroad was completed across the western
part of the nation in 1869, a truly remarkable achieve
ment, considering the obstacles to be overcome. The
railroad was a natural for Omaha, which then became
such a magnet for cattle drives that in 1884 the demand
for a livestock market led to a purchase of the site for
the Union Stock Yards—now, of course, the world’s larg
est livestock market and meat packing center.
It was in an exciting, booming, yet unstable period in
the development of the Gateway to the West that Ezra
Millard opened the doors of The Omaha National Bank
on July 2, 1866, as president. Cashier was Joseph N.
Field, brother of the famous Chicago merchant, Marshall
Field. Bookkeeper was William Wallace. A history of
the bank shows all three gentlemen performed a myriad
of duties—from loaning large sums of money to the tra
ditional sweeping-out.
The advent of The Omaha National commenced a long
and distinguished relationship of the Millard name with
both the bank and the civic welfare of the city of Omaha.
One of Mr. Millard’s first decisions on that July 2 was
to open an account with Chemical National Bank of New
York—now Chemical Bank New York Trust Company—
a correspondent account relationship, incidentally, that
still stands.
Bank protection was not the highly developed art then
that it became later, but few citizens knew that Ezra
Millard would wrap the day’s cash in a rolled-up news
paper each day, or disguise it with a bundle of clothes,
and carry it three blocks to the burglar-proof safe at Mil
lard, Caldwell & Company, another of the town’s banking
firms. Every morning the same procedure in reverse
was followed. Although there was seldom less than $20,000 in the bundle, there is no record of a loss in such
manner!
This was the banking home for six months until a
larger, and safer structure at 13th and Douglas was occu
pied. The bank remained at the latter spot until 1882,
N o rthw
e ste rn Banker, O c t o b e r , J966

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Federal Reserve Bank of St. Louis

Centennial for
b

B. M IL L A R D
Chairman

M . F. M IL L E R
President

then moved into another new building erected to its
specifications for banking, directly behind the original
structure at 210 South 13th Street.
Scene 2
1884-1920

Action: Joseph H. Millard, brother to Ezra, became the

ONB’s second president in 1884, and continued in that
position until 1920. He remained as chairman of the
board until he died in 1922. Mr. Millard was Mayor of
Omaha in 1872, a post held twice by his brother Ezra—
in 1869 and 1870. Joseph Millard’s next political distinc
tion came with his election to the United States Senate
in 1901.
It was during his tenure of office that The Omaha Na
tional moved “uptown” to keep pace with the rapidly
expanding flow of the business community. The new
site chosen was 17th and Farnam and the building was
the one in which ONB presently is located. It was
erected in 1888 as an investment property by New York
Life Insurance Company and was a duplicate of several
such buildings the New York firm built in several major
cities. It was very tall for its day—10 stories high with
a two-story tower.
The building was in an imposing locale for it was on a
hill above most of the town; consequently, the roof walk
way was a favorite spot for townspeople and visitors to
gather for sightseeing. The most unusual part connected
with ONB’s move to the New York Life building was the
fact that the firm had purchased the property from J. H.
Millard and the site was the Millard family home. When
the bank moved into the building, President Millard’s
desk was located almost directly above the spot where
his desk in the Millard home library had been.
For years another point of interest was the “eagle
above the door” which was one of the finishing touches
when the New York Life building was finished in 1891.
It weighs two tons, has a wingspread of 12 feet and cost
$3,000.
Scene 3
1920-1941

Action: When Senator Millard retired from the presi-

-f

its centennial year of 1966, The Omaha
DURING
National Bank has consistently pursued the

IM H i

O m aha

dency of ONB in 1920, he was succeeded by Walter W.
Head, who held the office until 1929. He was the national
head of the Boy Scouts of America for a period of years.
His successor was W. Dale Clark, now a member of the
bank’s Advisory Council, who led the bank with great
finesse and distinction through the turbulent years from
1929 to 1949. Mr. Clark started working in a bank at age
16 in 1908 and joined Omaha National in 1919. Mr. Clark
was at the helm with a steadying hand as the Omaha
National suffered through the great depression of the
1930’s as did every other bank and institution. Deposits
dropped from $36.5 million at year-end of 1929 to just
over $29 million at year-end of 1933. The Omaha National
under his leadership participated and helped lead Omaha
in its business resurgence so that by 1940 year-end depos
its were $51.7 million.
In its first 75 years, The Omaha National had thus suf
fered through usual birth pangs, went through the grief
of the panic years of 1872 and later down trends, watched
its male staff march off to the Spanish-American War
and World War I, and then in the final year of its 75th
jubilee, it saw the nation faced with another crisis that
would place heavy drains and responsibilities on the
banking system.

ACT II
“ The Next 25 Years”
Scene 1
1941-1945

Action: The first pressures of the draft in October, 1940,

developed into a big drain on manpower resources of The
CENTENNIAL YEAR . . .

(Turn to page 64, please)

ARTISTS’ con ception o f new headquarters fo r The Omaha N a
tional Bank, n ow under con stru ction in the b a n k ’ s Centennial
Year. The b u ild in g tow er rises 29 stories a b ove ground level.
Omaha N a tion a l w ill occu p y the b lock -lon g structure shown, and
the b u ild in g ow ner, W oodm en o f the W orld L ife' Insurance S o
ciety, w ill occu p y the tow er along w ith a num ber o f buildin g
tenants.

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“Thank You” theme to the people of Omaha, sur
rounding area and correspondent banks who have
been responsible for the bank’s growth through the
years. Here is a general outline of Centennial
events of ONB:
1. On February 25, ONB sponsored a half-hour
television special, “Birth of a City.” It traces the
developments of downtown Omaha, was produced
locally by KMTV, and utilized the famous, histori
cal Bostwick-Frohardt collection of rare photos.
The film is available free for showing to schools and
organizations. It will be shown again this fall on
local TV.
2. “The March of Time” series of eight documen
tary films ranging from history of the automobile
to frontiers of the mind have been shown in prime
TV viewing time and will be concluded this fall.
3, On March 28, the bank presented a $4,000 check
to the city’s Police and Fire Divisions for scholar
ship money to defray tuition expense incurred in
special schooling for these two services.
4. Omaha National has commissioned four famous
artists, selected by Joslyn Art Museum, to visit
Omaha and Nebraska and complete a contemporary
painting of the Nebraska-Omaha scene. Dong Kingman visited the city in March. James Penney was
in Omaha in May, at which time ONB displayed 21
of his best works valued at $15,000. Constance
Richardson is due in Omaha in November. Peter
Hurd’s arrival in Omaha is indefinite, depending on
when he completes a portrait of President Johnson
at the LBJ ranch. When finished, the four artists’
paintings will become a permanent part of the Jos
lyn collection.
5. On April 14 the bank held a dinner in honor of
the Omaha-Douglas County Medical Society. Noted
columnist and radio commentator Bob Considine
addressed the approximately 375 physicians, bank
officers and directors.
6. May 9 was the date of the Omaha Junior
Achievement Awards Banquet, and a fortunate
young person selected by the JA Scholarship Com
mittee was recipient of the ONB’s special $500 schol
arship award to an Achiever.
7. July 11-15 was the official “open house” at the
bank for the public. Cake and nuts were served
during this week and almost 5,000 pieces of cake
were served in the walk-in, drive-in facility.
8. In August, the bank made a $5,000 gift to the
new Henry Doorly Zoo in Omaha in the form of a
two-year-old African elephant.
9. The Correspondent Bankers Centennial Con
clave was held September 22 at Sheraton Fontenelle
Hotel and is reported elsewhere in this issue.
10. On September 28, members of the Omaha Bar
Association were guests of the bank at a special
dinner. Art Buchwald, famous columnist and au
thor, spoke to the gathering of 500 persons.
11. An unusual currency exhibit is on display in
the bank’s main lobby. It is assembled from ONB’s
own collection and features national bank notes it
issued in earlier years.
12. All directors, officers and staff members have
been presented special Centennial pins to wear dur
ing 1966. This features a special eagle drawn just
for the event by a famous industrial designer.—End.
N o rthw e ste rn Banker, O c to b e r , 1966

34
EADING into the final quarter of 1966, there is no
foreseeable letup in the “tight money” pressure
prevailing throughout upper midwest states just
as it is in the rest of the nation. This is the consensus
of the chief executive officers of 20 of the larger city
banks in Iowa, Nebraska, Minnesota, South Dakota, North
Dakota, Montana, Wyoming and Colorado.
For this special report on what is anticipated in the
last quarter of the year, the N o r t h w e st e r n B a n k e r asked
these bank officers four questions:
1. What is the outlook in your immediate area for
money supply in the next few months?
2. Do you feel that interest rates will continue to move
up on time money? On loans?
3. Have you had to curtail your lending due to limited
funds?
4. Has tight money affected housing or commercial con
struction in your area? Business or farm expansion?
City projects? Municipal bond issues?
After these letters had been sent out, Congress an
swered part of the second question by passing a bill, im
mediately signed by the President, which gives the Fed
eral Reserve Board authority to control savings interest
rates. A 5 per cent ceiling was announced on CD’s of less
than $100,000 in banks, with a continuance of the 5% per
cent ceiling for those over that amount.
These top officers responded to the second part of ques
tion two as follows: Seven believe loan rates will or
might rise slightly before the end of the year, while 13
of them expect loan rates to remain steady throughout
this quarter. None said they expect rates to decline this
quarter. Several who anticipate a “steady” pace for loan
rates called attention to the fact that a ceiling of 7 per
cent on commercial bank loan rates exists in their states,
thus putting an effective clamp on much more of an in
crease, despite the rising cost of money to the banks.
Most of the 20 banks have curtailed their lending to the
extent that they are confining loans to present customers.
Speculative loans are toughest to get through a loan com
mittee and are completely out in most banks right now.
Increased funds are expected or hoped for in a number
of areas this fall as agriculture’s cash crops bring in
money for loan payments, helping a rollover of funds for
other borrowers.
The responses from these banking leaders follow:

Deposits Over $ 2 0 0 M illion
MY opinion, in the next few months, the supply of
I Nmoney
in this area should increase due to the splen
did crop conditions which now exist.
It is my opinion that interest rates will remain as they
are or increase even though the supply of money may
increase because demand will increase even greater.
As far as the payment of interest on time money is con
cerned, because of the passage of the recent bill by Con
gress, the Federal Reserve Board has the power to deter
mine what these rates will be.
While we have not as yet curtailed our lending due to
limited funds, we are being more selective and are urging
customers to carefully consider whether or not the re
quest for credit can be postponed.
In my opinion, the tight money has definitely affected
home building more than commercial construction in this
area and if rates continue as they are or increase, com
mercial construction will also be affected. Some munici
pal bond issues, no doubt, have been postponed because
of the high rates and I am also of the opinion that some
projects have not been undertaken by municipalities be
cause of high rates.
Nofor
rthw
e ste rn Banker, O c to b e r , 1966
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For 4th Quarter o f 1 9 6 6

Area Bankers
A N ORTH W ESTERN

anticipate that the money supply would inI■ WOULD
crease moderately over the next few months on a sea
sonal basis. Largely because of the agricultural influ
ence, our demand deposits always rise between now and
the end of the year, and I can see nothing that would
change that pattern.
I would think that interest rates have about reached
their peak on time money and on loans. In the imme
diate area, we are still paying only 4% per cent on nonnegotiable certificates of deposit which we offer to the
public, although our bank has paid, and is paying, 5%
per cent on negotiable certificates of deposit, and I as
sume some of the other banks in the area are doing like
wise. Communities around us are offering more on nonnegotiable certificates of deposits, and it could be that
we will eventually need to meet that competition. So
far, I think the odds favor just a bit the maintenance of
our present rate structure.
I think the prime rate has reached its peak, although
short-term rates will continue to be very high and some
what volatile over the next three or four months.
We have definitely had to ration credit here and have
been doing so for a year now. I see no change in our
need to do this in the foreseeable future. The demand
from the agricultural sector will continue strong due to
excellent crops and reasonable prices, and the commercial
activity in our immediate territory continues high.
Tight money has influenced the housing construction
in this area. Just how much of the decline in construc
tion activity is due to tight money and how much due to
an over-supply of housing is difficult to say. But at any
rate, residential construction is off substantially.
I think tight money to date has affected commercial
construction, business expansion, city projects and mu
nicipal bond issues only slightly, if at all, in the immedi
ate area.
is tight in our area, and we would expect it
MONEY
to continue so for the next several months. We

would, however, be hopeful that we could continue to
support the regular seasonal and business needs of our
customers.
Although I do recognize some strong factors on the
other side, it is my personal opinion that rates on time
money and on loans will not rise further. I think I
would place political considerations as the primary reason
for this feeling on my part.
We have curtailed our lending substantially because of
limited funds. We are examining new applications very
carefully, and we have called some loans that we did not
feel were attractive or desirable for a variety of reasons.
I believe the tight money has affected both housing and

See No Easing of ?Tight M oney9
BANKER Survey

commercial construction in our area, and business and
farm expansion to some extent. So far as I know, it has
not yet affected city projects or municipal bond issues.
E DO not expect any increase in the money supply
in this area in the next few months—in fact, quite
the contrary. With ceilings on the rate banks can pay
below the going market on short-term instruments, it is
difficult to see any increase in time money.
As indicated above, rates on time money are at or very
close to existing ceilings. There could be some further
increase in rates on loans.
Yes (curtailment of lending due to limited funds).
Yes to the first two areas (tight money has affected
housing and commercial construction).

Deposits $ 1 0 0 -$ 2 0 0 M illion
UR outlook for money supply during the next few
months is for continued tightness. There is always
an upsurge in credit needs during the fall months and
deposits have not shown their usual increase at this
time of year.
We feel that interest rates will not move up on time
money since nearly all of the banks in this area are
already at the maximum allowed by Regulation “Q.” If
the Fed exercises their new restrictive powers, rates on
time money will probably even be lowered. In our opin
ion, loan rates have finally caught up with the rates banks
are paying on time money so we are not anticipating fur
ther raises.
Definitely (curtailment of lending).
There is no doubt but that tight money has restricted
construction business and farm expansion, as well as
municipal projects.

executive officers of upper midwest banks
T HE
who participated in the accompanying special
report on “tight money” are:
COLORADO

Max G. Brooks, president, The Central Bank and
Trust Company, Denver.
Neil F. Roberts, president, Denver United States
National Bank, Denver.
IOWA

James E. Coquillette, president, The Merchants
National Bank, Cedar Rapids.
Calvin W. Aurand, president, Iowa-Des Moines
National Bank, Des Moines.
Max von Schrader, president, Union Bank and
Trust Company, Ottumwa.
E. C. Thompson, Jr., president, Security National
Bank, Sioux City.
Joe T. Grant, president, First National Bank,
Sioux City.
Dale K. DeKoster, president, Waterloo Savings
Bank, Waterloo.
MINNESOTA

Chester C. Lind, executive vice president, First
American National Bank of Duluth.
Carl R. Pohlad, president, The Marquette National
Bank of Minneapolis.
John A. Moorhead, president, Northwestern Na
tional Bank, Minneapolis.
John F. Nash, president, American National Bank
and Trust Company, St. Paul.
MONTANA

R. M. Waters, president, Security Trust & Savings
Bank, Billings.
NEBRASKA

T LEAST as far as our bank is concerned, money is
tight and will get tighter. Short-term rates on loans
could perhaps go higher.
I don’t look for any great move in rates on time money
over and above those currently in effect.
We have had to curtail our lending due to limited funds.
I think tight money affects all of the areas you ask
about.

S. N. Wolbach, president, The First National Bank
of Grand Island.
Glenn Yaussi, president, National Bank of Com
merce Trust & Savings, Lincoln.
Morris F. Miller, president, The Omaha National
Bank, Omaha.
Edward W. Lyman, president, The United States
National Bank of Omaha.

XVTE EXPECT no increase in the supply of funds na
f f tionally nor in our region within the next few weeks.
We feel that monetary policy would be shifted slightly
if effective fiscal actions such as increased taxes or re
duced government spending were initiated in the future.
We do not expect any further sizable increases in inter
est rates on loans as present levels have had no effect

A. K. Simpson, president, Merchants National
Bank and Trust Company of Fargo.

(Turn to next page, please)

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NORTH DAKOTA

SOUTH DAKOTA

Martin J. Colton, president, The National Bank of
South Dakota, Sioux Falls.
WYOMING

D. Mahoney, senior vice president, The First Na
tional Bank and Trust Company, Cheyenne.
N o rth w e ste rn Banker, O c to b e r , 1966

jgf) "Money Supply Will Remain Tight “
upon some borrowers. Rates on savings certificates in
this region are generally lower than in New York and
other areas. Therefore, there is some possibility of in
crease in rates as long as the present scarcity and de
mand for funds continues.
We have definitely had to curtail some lending over
the past few months. Tight money has affected the con
struction industry as well as other types of business ex
pansion in the Midwest. Some municipal bond issues
have been postponed or cancelled because of the present
condition of the bond market.
E HAVE thus far been extremely fortunate in hav
ing been able to meet the legitimate loan demands
of our depositors in 1966 with little, or no, restraint, even
though this has necessitated the use of borrowed funds
to an extraordinary extent. The tight money situation in
which we have found ourselves has, however, dictated
forebearance from credits of questionable quality, partic
ularly when associated with the establishment of a new
relationship, and a reluctance to enter into commitments
of a long-term nature, including mortgages on all types
of construction if we are lacking in proper outlets there
for. We believe that a continuation of this pattern will
obtain for some months to come.
The program which President Johnson and the Con
gress are endeavoring to set into motion to relieve to
day’s stringent monetary conditions, and at the same
time lower prevailing interest rates, doubtlessly have
some merit but their enactment and implementation can
not be expected over-night. The ultimate effectiveness
of any temporary political expedience upon an over
heated economy, especially if it is designed to curtail
growth in private enterprise without a corresponding
reduction in governmental expenditures, has always been
open to some question. The introduction of these meas
ures probably will forestall any immediate increase in the
allowable rate of interest on time deposits.
We consider it unlikely, as well, that a raise in the
discount rate will occur. However, there remains a
strong possibility that many of the certificates of deposit
now outstanding will be redeemed as they fall due to
free these moneys for reinvestment in other channels
offering more attractive returns. If this comes to pass,
the plight of banks in metropolitan centers will be mag
nified and the likelihood of a downward adjustment in
our current rate structure would become extremely re
mote. It is also conceivable that a pronounced drop in
time deposits might compel banks to enter into a large
scale liquidation of their bond portfolios to replenish
the drain upon loanable funds. Under these circum
stances another round of increases in loan rates could
follow, particularly if the economy continues its upward
movement.

the next few months we believe the money sup
OVER
ply will remain tight, despite the government’s ef
forts to “cool off” what has been described as an over
heated economy. We come to this conclusion largely by
reason of commitments, along with an expected seasonal
demand for money during the period ahead.
We do not look for any significant further increases in
interest rates on time money, at least at this time, but
further upward movement of interest rates has been
N ofor
rthw
e ste rn Banker, O c to b e r , 1966
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strongly rumored to occur on the national level, and if
this takes place, it will be reflected in all segments of
borrowings. As almost every other bank has done, our
lending activity is being curtailed by a policy of greater
selectivity and reduction of new commitments.
Tight money is very definitely affecting new house con
struction in our area, and if this situation continues, com
mercial construction is likely to be reduced also. It does
not appear to us that there will be any lessening of pres
sures on the money supply for several months.

D eposits U nder $ 1 0 0 M illion
UR money supply in this area should improve during
the next few months as livestock and farm products
are marketed.
I do not feel that interest rates on time money will go
higher but I believe most banks in this area will be forced
to increase further the interest rates charged on loans in
order to offset rising costs.
We have not had to curtail our lending to regular cus
tomers. We have been able to accommodate borrowers
on most of their legitimate requests for credit.
Residential and commercial construction have defi
nitely been affected in this area because of the cost of
and the uncertainty of obtaining long-term mortgage
money.

LOOKS to me as though the money supply in our
1'T. area
is going to continue to be tight during the bal
ance of this year, and under present conditions we look
for it to be even tighter the first half of 1967.
I expect interest rates to continue to move up both on
time money and on loans. However, I do not expect as
drastic a rise as there has been during the past year.
We have curtailed our lending due to limited funds.
We are trying to find enough money to take care of our
present customers’ needs and do not consider applica
tions from non-customers and non-depositors.
I feel that tight money has affected our housing and
commercial construction. Business and farm expansion
and city projects have been affected too, however, not
to the same extent as construction.
our money position has been rather tight
A LTHOUGH
recently, we anticipate some relief from now to the
middle of November. Sale of farm products, including
grain and livestock, should increase deposits and bring us
good liquidation on our agricultural loans.
As to interest on time deposits, most of the banks in
South Dakota are at the maximum rates permitted by
state law. Rates on loans have been adjusted upward
in practically all categories of loans to offset the addi
tional cost of time deposits and increased expenses.
It has been necessary to curtail loans to some extent,
but fortunately we have been able to take care of the
requests from businessmen and farmers. We are, how
ever, looking at each credit application more carefully
and determining whether or not the proceeds are to be
used for productive purposes.
Tight money and increased rates have had a material
effect on housing in this area and have delayed some
commercial construction. These factors have also had
an effect on business and farm expansions.

’ "Doubt Interest Rates Will Climb More"" $¿1
that the outlook in our immediate area
W EforBELIEVE
money supply in the next few months is rather
static. In the areas which we serve, the fall months of
the year usually reflect an increase in deposits, which
could cause some temporary relief insofar as tightness in
our present situation.
We rather doubt that interest rates will move up on
time money, and if we are correct in this assumption, we
do not believe that further increases on loan interest will
he necessary.
Yes, we have curtailed our lending, due to limited
funds.
Commercial construction in our area continues good;
however, we believe this is a result of commitments made
some time ago, at much lower rates. High rates have
definitely affected housing construction in our area. Busi
ness and farm expansion has also been curtailed.
THE time of this writing, the stock market has
A Tshown
a two-day recovery presumably from the at
least psychological effects of the action on the 7 per cent
credit demise. This would indicate apparently some
creative action on the part of the administration to at
tempt to ease the tightness. However, it is our opinion
that the money supply in the next few months is not
going to increase and that the tightness is going to remain
in effect, although hopefully, not become more pressing.
Our interest rates on both ends are up to the barrier.
This area is paying 4% per cent on Certificates of De
posit, which is the legal maximum allowed under provi
sions of state law. On the other hand, interest charged the
customer is, in a high percentage of the cases, up to the
maximum legal rate of 7 per cent. It is a rather stringent
situation when the prime rate to the best borrower in
the United States is 6 per cent and a maximum rate of
7 per cent exists in our state. Obviously, then, interest
rates cannot continue to climb a great deal unless the
legal rate is changed.
This bank has had to curtail its lending policies some
what. We have always been a high ratio loan bank, and
as a result, when the “tight money” situation set in, we
were affected almost immediately. Presumably, the situ
ation is quite the same with the lending agencies in our
community. They have all endeavored to service the
needs of this community and pave the way for a steady
growth and well-financed economy. At no time have we
even entertained the idea of not servicing our customers
for their legitimate operating needs, and have no inten
tion whatsoever of not continuing to do so.
It is assumed that there will be an influx of money
from our agricultural marketing soon; however, on the
negative side here, there is quite positive evidence that
most of the farmers are holding a good share of their
products in the granary until at least after the first of
the year; this, despite the fact that the prices now are
better and a tax increase could be forthcoming next year.
It does not appear to us that the farmer has been cur
tailed in his credit requirements. The rate of interest,
of course, has in most cases risen.
Probably the housing industry locally has been most
seriously affected. Our building lenders have had to cur
tail commitments considerably and almost entirely in
some instances, and this, of course, has a very direct
effect on the builders, especially in the housing end. It

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would appear that much of the commercial construction
has Federal or some type of municipal funds involved
which seems to keep rolling along.
Of interest is the recent bond issue floated by the city
of Fargo with a net rate of 4.28. We choose to consider
this a very good rate for the present money market, and
in comparison with other cities of our size, very desir
able; but, nevertheless, it is indicative of the current con
ditions and considerably higher than any issues ever
floated for marfy years. It would appear that under these
circumstances that this would be somewhat of a depres
sant for future similar projects.
Our economy continues strong, farm income should be
up and it is our opinion that the needs of business will
be adequately carried by the lending agencies with the
one rather dismal picture—that of the house building
industry. It is hoped that this can be alleviated in the
not too distant future.
word “tight” has a different connotation when
T HE
used as an adjective of money than when applied to
anything else. Apparently, the money supply is elastic
and when it is stretched then money is tight.
We are not an island in the realm of monetary policy
and our supply of loanable funds has not increased for
many months. The result is that extension of credit is
restrained. This takes the form of placing loans in a
manner thought to be advantageous in the future rather
than most profitable immediately, for sometime money
will again be plentiful.
Not expecting any drastic government action, there
seems little reason that money will be other than tight
for some months. However, rates on both loans and
time money would appear to have reached a plateau; wit
ness the recent change in Regulation “Q.”
Until now, it could not be stated that there has been
any curtailment in construction. Nevertheless, the situa
tion of tight money exists and will, without question,
have an effect here in the months ahead. However, the
bumper crops should provide some new funds, perhaps
allowing somewhat better conditions than in industrial
areas.
THE Billings trade area of northern Wyoming and
I'N. Montana
we find that deposits in banks show a con

siderable increase over a year ago, a large portion being
interest bearing savings and time certificates of deposit,
rates being 3 y2 per cent and 4% per cent, up one-half per
cent. This increase has taken care of the demand for
loans with the exception of real estate loans.
As banks are limited to the amount of real estate loans
they can carry in their portfolios, their policies have
been to broker loans to insurance companies and other
sources who are in the market for this type of paper.
These loans can still be placed but the rates have in
creased to 6 % per cent and up, plus additional fees for
closing. This has affected both housing and commercial
construction.
Banks have sufficient funds for other requirements, in
cluding consumer credit, business loans and farming oper
ations, including feeding. Rates on these loans, however,
NO EASING ON ‘TIGHT MONEY’ . . .

(Turn to page 52, please)
N o rthw e ste rn Banker, O c to b e r , 1966

F A Y E T T E B A N K E R Gene Hervey view s area to be covered b y his proposed lake.

4i*

I o

YOU happen to visit
1"F. Bank
of Fayette these

the State
days you
will probably hear a great deal of
talk about the “Fayette Lake.” If you
happen to talk to the president of the
bank, James E. (Gene) Hervey, you’ll
probably find yourself taking a very
dry “boat ride” around the “lake.”
The “lake” doesn’t exist yet, but
it’s much nearer reality than when
Mr. Hervey first proposed the idea.
What was originally greeted as “Hervey’s Folly” is now regarded as what
N o rfor
thw
e s t e r n B a n k e r . O c t o b e r , 1966
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e r ' s

may be northeast Iowa’s finest oppor
tunity in a century or more.
It all began shortly after Mr. Her
vey purchased controlling interest in
the bank. He was well aware that
the bank’s trade area was hindered
due to the fact that there were larger
banks in West Union to the north
and in Oelwein to the south. If
By

D A V ID L . L E N D T
M a n a g in g

E d ito r

I n

f I I I

growth was to be realized, he rea
soned, it must come from within Fay
ette, the home of Upper Iowa Uni
versity.
An ardent outdoorsman, the banker
one sunny day was driving on a coun
try road near Fayette when what he
describes as “a vision of the most
beautiful lake” came to him from high
atop a bluff overlooking the meander
ing Volga river. We took the “boat
ride” and embraced the same view.
The setting is natural and the scenery

39
is bracing. It’s difficult not to see a
lake in the basin Providence has so
graciously provided.
Gene Hervey saw immediately the
advantages of a lake in northeast
Iowa. He could see increased tourist
activity not only for Fayette, but for
the entire area. He reasoned that
such increased tourist trade would be
beneficial to the entire state and that
all Iowans would benefit from such a
central attraction for the several in
teresting sites in the “ Switzerland of
Iowa.”
He could see the “scenic wasteland”
near Fayette converted into a hub of
outdoor sporting activity. He could
see an extensive camping ground of
600 campsites. He could see a ski run,
a golf course and an outdoor theatre
in addition to boating, fishing and wa
ter-skiing.
But, when the banker three years
ago announced his plan, his neighbors
weren’t quite so enthusiastic as he.
Although the modest Mr. Hervey will
not say so, some influential Fayette
countians felt that perhaps his “vi
sion” was the result of hallucination
and that his plan was on the order of
a “castle in the air.”
Organized Plan

For months and months it was a
one-man battle for the banker who
was trying to think big for the bene
fit of his community and his clients—
for all of his area of the state, for that
matter.
The stubborn Mr. Hervey organ
ized his plan of attack. Four matters
had to be decided—geology, engineer
ing, soil erosion control and financing
—so he began systematically to ar
range for studies to find whether the
project was, in fact, feasible.
The area involved would comprise
approximately 5,000 acres. The lake
would include 1,140 acres. The tour
ist value was self-evident, inasmuch
as the area is the juncture of four
states and straddles several major
tourist routes. Within a 60-mile ra
dius of the lakesite are 700,000 persons
—548,000 of them Iowans.
With the help of H. Garland Hershey, Mr. Hervey arranged for a geo
logical examination of the area. On
the basis of the initial tests, it was
determined that Hervey’s lake, liter
ally, would not “hold water.” Fis
sures in limestone formations which
would form a portion of the wall of
the lake were to blame. In addition,
sub-surface conditions were not suited
for service as a lake bottom. Tenac
ity on the part of Mr. Hervey and the
geologist—who had become caught up
in the “lake fever” now beginning to

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manifest itself throughout the area—
resulted in the geologist’s return for
one final test at a site farther down
stream near the non-existent town of
Lima. The test proved positive. As
a matter of fact, it showed that the
intended basin of the lake was “lined”
with a layer of slate which would pre
vent seepage. The outlook was bright.
Has No Ownership

In a letter to Sherry Fisher, then
with the Iowa Conservation Commis
sion and now vice president in charge
of community development for Cen
tral National Bank & Trust Company,
Des Moines, Mr. Hervey described
some of the advantages of his project:
“ The state of Iowa already owns a
part of the area and the whole lake
would lie in an area of very low soil
fertility. Land acquisition costs should
be low and we feel that there is a
good possibility of acquiring some
land as a donation in recognition of
the enhancement of land values from
the development.”
It should be pointed out here that
Mr. Hervey owns not one acre of the
land in question. “ I don’t own any,
I don’t hold stock in any organization
which owns any, and I don’t want
any,” he says. The public benefits to
be gained by the project are entirely
too great, he insists, to be endangered
by charges of any profiteering on his
part.
The geology and engineering are
feasible. The third step will require
that at least 75 per cent of the 106,000
acre watershed is under soil erosion
control. The fourth step — that of
financing—is not a large hurdle be
cause of the low value of the land and

the fact that the state owns a portion
of it. It is estimated, however, that
the project would cost about $3% mil
lion.
State Funds for Land

The project recently received a
“ shot in the arm” with the announce
ment that the Conservation Commis
sion had included the project in its
request for funds to be presented to
the next session of the Iowa legisla
ture.
A few weeks before, things hadn’t
looked so promising. A report pub
lished throughout the state noted that,
although the Fayette lake had been
high in priority, its status had been
lowered in favor of a lake develop
ment project in northwest Iowa.
As it turned out, the report was
unofficial and had no basis in fact.
“ It didn’t really harm us,” Mr. Her
vey reports. “As a matter of fact, it
probably did a lot of good around
here.” Northeast Iowans who had ex
pressed no great interest one way or
another became mildly incensed when
they heard that the area which al
ready boasted the “ Iowa Great Lakes”
was to receive additional aid at north
east Iowa’s indirect expense.
There are many stones remaining
to be turned before the Fayette Lake
(officially, the Volga River Impound
ment Project) becomes a reality.
The Big Rock Country Club and
golf course, on a scenic finger which
would extend into the proposed lake,
is a reality. The picturesque nine-hole
course was opened just this season.
ONE-MAN FIGHT . . .

(Turn to page 64, please)

Northwestern Banker, O c to b e r , 1966

40
'T”
M

e e k

K a

( ¿ v a

r i u

r i a

v a

t i n

t e

N o t e : Dr. Davids is one of nine college educa
who were recipients of Professional Fellowships.
The professors were selected for the Graduate School of
Banking at the University of Wisconsin by the Central
States Conference of Bankers Association and the Regis
tr a r of the School. He brings to this article his first hand
observations of his recent experience there.
E

d it o r ’ s

tors

HE rapid changes in technology today make it im
perative that banking provide continuing sources of
higher professional education even above the fine
program of the American Institute of Banking courses
which educate over 100,000 bank employees each year.
The several Graduate Schools of Banking are designed
to meet this need. For specific illustrations this column
deals primarily with the Graduate School of Banking at
the University of Wisconsin. There are some significant
variations from one graduate banking school to another.
Most of the observations here probably would be equally
valid for the other graduate schools such as Rutgers Uni
versity’s Stonier Graduate School of Banking, Louisiana
State University’s School of Banking of the South, South
ern Methodist University’s Southwestern Graduate School
of Banking, the University of Washington’s Pacific Coast
Banking School, The Commercial Bank Management
Seminar at Columbia University and the Seminar for
Senior Bank Officers at Harvard Business School.
To a somewhat lesser degree the several individual
states’ banking schools and the specialized banking
schools such as in installment credit, trusts, and mortgage
banking provide complementary educational facilities.

What’s Their Purpose?

The purpose of the graduate banking schools is to “ pro
vide bankers with an opportunity for advanced study and
research in banking, economics and monetary problems.”
This the schools do—and more.
The Graduate Schools bring together a broad cross sec
tion of seasoned bankers of varied experience. This has
many advantages but some disadvantages. By meeting
on a college campus a psychological nudge is obtained.
The educational environment is pervasive. A campus
atmosphere is conducive to full and frank exchange by
banker student peers not only of the topics taken up in
class, but to the unsolved problems of their individual
banks.
Enrollment

Total enrollment at the several schools has increased
each year. The Banking Education Committee of the
American Bankers Association brought together some
statistics which give an idea of the size and scope of the
bankers’ schools. In 1955 over 10,330 students attended
some 57 bankers’ schools for a period of over 118,000 stu
dent days at a cost of $3,000,000 for tuition, room and
meals, registration fees, and instructional material. These
jN o rthw
e ste rn Banker, O c to b e r , 1966

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By L E W IS E . D A V ID S
Hill Professor of
Bank Management
University of Missouri
Columbia, Missouri

figures do not include such expenses as travel and salary
paid to the banker students. While typically the “stu
dent’s” bank pays tuition, provides travel and regular sal
ary a number of students do attend during their own
vacation and at their own expense.
Who Attends?

The admission standards do modestly vary from school
to school. Some schools, such as Stonier, have a larger
backlog of applications and presumably greater selectivity
as a result. A review of the stated admission policies
shown in the various catalogs reads pretty much the
same. In fact, they appear to have literally borrowed
from one another even to the wording of the various qual
ifications. Normally, officer status of at least two to five
years minimum, or equivalent college or certification by
the American Institute of Banking, is essential.
Special exemptions are provided for non-bank employ
ees from such organizations as state banking depart
ments, the FDIC Federal Reserve Bank, Office of the
Comptroller of the Currency, investment bankers, and
bank directors and college professors, provided they meet
judgment standards of the respective committee on ad
mission.
A letter on bank stationery to the Registrar of the
before noted schools will obtain a current catalog for
readers who wish more specific detail.
What Do They Teach?

The two broad areas of (a) Economics and (b) Bank
ing are broken down into one- or two-week courses meet
ing daily for an hour to an hour and a half. The courses
for the first year have such titles as Management of Bank
Funds, Bank Credit, Banking Law, Investment, Basic
Economic Problems, Management of Bank Assets, Bank
Public Relations.
Second year courses have somewhat more specializa
tion—and include Real Estate Finance, Installment Credit,
Agricultural Economics, Agricultural Credit, Commercial
Bank Administration.
During the third year the student banker can expect
to take up such subjects as Advanced Credit Analysis,
Monetary Policy, Trust Department Procedure and Prac
tice, Country Bank Management, Business Conditions, In
ternal Organization and Personnel, International Finance,
Business Development, Money-Capital Market, Interpret
ing Economic Change, Human Relations and Foreign
Trade.
Most graduate banking schools also provide evening
sessions in which outstanding authorities present topics
of a varied nature. One night the general assembly may
GRADUATE EDUCATION . . .

(Turn to page 48, please)

“The room” at 20 Pine Street, New York. Here, hundreds of millions of dollars are handled daily.

SHORT-TERM M O N E Y H O T L I N E '
The up-to-the-minute intelligence system set up by one bank to serve business.
Now one phone call will do it.
Corporations, correspondent banks, and other institutions
may now learn what investments would be available to them
for 30, 60, 90 days or more. Just by calling (212) 770-2568.
This is Chemical New York’s Short-Term Investment De
partment: “The room.” Here we have assembled a select group
of men with specialized knowledge in short-term investing.
Equipped with a complete complex of facilities and informa
tion, they can offer you instant insight into the best rate for
every type of short-term investment.
This intelligence system reaches out to all major govern

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

ment and private borrowers and investors. It brings rates and
availabilities together into one up-to-the-minute data center.
We can then proceed with purchases and payments and, at
maturity, with the complete collection procedure.
To learn more about this valuable service, simply talk to
the trained financial consultant who serves your area, “ the
New York banker with the hometown touch.” He, like the
service itself, will prove to be partic*
1
ularlv helpful. Chemical Bank New v j 1 l O l
1 C‘ c l I
York Trust Company, N.Y. 10015.
^
The bank that works hardest for you.
▼▼ l O I -*V
N o rth w e ste rn Banker, O c to b e r , 1966

e n

e r

c c o

t s

f o

. 6

o f
%

A N O R TH W E STE R N BANKER S u r v e y

'N A RANDOM sampling of banks

in three upper midwest and three
• mountain states, it is shown by a
N orthwestern B anker survey that
just over 81 per cent of the accounts
in the surveyed banks are numbered,
and almost an equal number state
they have included a check digit.

These figures were obtained from a
study of 60 banks with deposits rang
ing downward from $50,000,000 in the
states of Iowa, Nebraska, Minnesota,
Montana, Wyoming and Colorado.
This represents nearly 3 per cent of
the banks in the six states.

National Cash Register Company and
In te rn a tio n a ] Business Machines.
NCR’s most commonly designated
equipment by the 29 banks is the
NCR Encoder or NCR 450 proof. Bur
roughs’ T100 encoder is the item from
this firm most frequently mentioned.
IBM’s 1200 and 1400 series machines
for punch card or tape disc handling
have been installed in several of the
29 banks in the upper deposit range
between $25,000,000 and $50,000,000.
Three of these banks of this size indi
cated they are doing some work for
several surrounding banks.
Question No. 3

Question No. T
"Are your accounts numbered? Does
your numbering system have a check
digit?"
Numbered

Yes
No

49 (81,6% )
11 (18.4% )

Check Digit

46 (76.7% )
14 (23.3% )

Larger banks have turned to data
processing equipment — either their
own, or large computer centers—in re
cent years due to the heavy volume
of paper work clogging larger city
banks. This special report was made
to determine what has been done, or
what might be done in the near fu
ture, with EDP by smaller banks.
Requisite to participating in any
data processing system is account
numbering, and the statistics quoted
above indicate the percentage of par
ticipation at this time in such num
bering.

Question No. 3 was: “What percent
age of your checking accounts are
now encoded for magnetic ink proc
essing (MICR)?”
Ten of the respondents, or 16% per
cent, said they have done no such en
coding. Among these, four of the 12
Iowa replies stated “none” to this
question. Most of the replies indicated

Question No. 3
"What percentage of your checking
accounts are now encoded for mag
netic ink processing (M IC R )?"
10 replied none.
49 encoding banks average 92%.

encoding in excess of 90 per cent of
the items, although two Nebraska
banks listed 20 and 30 per cent as
their encoding totals.
Question No. 4

Question 2
Question 2 was: “What data proc
essing equipment, if any, has your
bank installed? (Encoder and other
equipment).
Of the 60 respondents, 31 stated they
have not yet installed any of this
equipment. The other 29 listed stand
ard hardware available from EDP
manufacturers that is familiar to
many bankers. The three firms men
tioned in the survey as having equip
ment in these 29 banks are Burroughs,
N o rth w e ste rn Banker, O c to b e r , 7966

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Federal Reserve Bank of St. Louis

Question No. 4 was: “What arrange
ments, if any, do you have with a
correspondent bank, service center or
other source, for data processing of
any part of your records outside the
bank? Also, do you have any such
plans under consideration?”
Although the ability of correspond
ent banks to perform such specialized
service for correspondents has devel
oped in a rather short space of time,
it is interesting to note that of the 60
respondents, 25 replied “Yes” to this

question, seven said “Considering”
such a move, and 27 said “No.” In
cluded in the latter group of 27 are
those banks in the upper range of
deposits in the surveyed group (banks
up to $50,000,000 deposits), who have
installed their own hardware and even
do some of this work for a few sur
rounding banks. Consequently, the
definite “No” group dwindles then to
about 23.
This represents one of the impor
tant advances in EDP programs for
banks for it permits larger, city cor
respondent banks to purchase and
pay for the expensive equipment
needed for the larger banks, and to
use excess time for correspondent
banks not large enough to purchase
such expensive, sophisticated equip
ment. As important as the initial cost
is the manpower overhead that must
be met by staffing properly trained
personnel knowledgeable enough to
operate an EDP system. It affords the
smaller bank an opportunity to have
all or a part of its daily work done on
EDP if it chooses to do so.
Some smaller banks prefer not to
have any part of their work done out
side their own banks. One Iowa re
spondent stated bluntly, “We would
not consider a plan to turn our ac
counts over to an outside bank. This
plan is close to branch banking, and
makes ‘slave’ banks of those using
the method.
“We have two .............. machines
and are not happy with them. We
have had them since the first of the
year, and from the use of these would
not consider any further move to
wards automation. I believe automa
tion is a step backwards rather than
forward. Letting machines do the
brain work can provide some fine ro
bots but certainly does not train em
ployees to become tellers or officers.
An employee must be trained to think
and the old method of bookkeeping
provided this.
“ Since the installation of the .........
we have had more errors in the past
six months than in the past 10 years,

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Federal Reserve Bank of St. Louis

In -b a n k p ro c e s s in g s a ve s the d a y
(w h ile it s a ve s the d o lla rs )
The automated Recordak PROSTAR Film
Processor saves the day or more it used
to take to have your microfilms released
to an outside film lab for processing. It
also “saves the day” when it comes to
record security. Your microfilms never
leave your control with in-bank automated
processing. Since the PROSTAR unit gives
you im m e d ia t e processing, the film can be
checked and the microfilmed records re-

leased without delay. All this, and you save
a dollar or more on processing cost per
100-ft. roll of film. The PROSTAR Processor
is easy to install, easy to maintain. It is
styled for office use, engineered for opera
tion by non-technical personnel. No dark
roomsorextra laboratory facilities needed.
For details, write: Eastman Kodak Com
pany, Business Systems Markets Division,
Dept. O-IO, Rochester, N.Y. 14650.

Northwestern Banker, O ctober, 1966

44
and these errors are the ones that get
out to the customers. Dual posting
offers the only means of stopping er
rors before they get to the customer.
We know that we are not alone in
this. The city banks have complete
automation and at least once a month
we will receive advice that some cash
letter of thousands of dollars has been
posted wrong. How far can we go in
such errors? I have been informed
by a reliable source that some banks
under automation have not been in
total balance for weeks.
“A bank is not a grocery store that
can only provide self-service. A bank
has only one commodity to sell and

11 11* *P1

Question No. 4
"Do you have an arrangement with a
correspondent bank, service center or
other source, for data processing of
any part of your records outside the
bank? Also, do you have any such
plans under consideration?"
Yes 25 (41.7% )
Possibly 7 (11.7% )
No 27 (45% )
No Response 1 (1.6% )

that is service and we’d better con
tinue to provide this. Automation is
for the birds—and the machine com
panies, certainly not for institutions

C”.

M il#

■ ■ ■

n e w

Douglas-Guardian procedure
to give your loans even greater
protection
“ Verified Inventory Control’ ’—VIC, as we
call it—is a simplified system that helps
you help your clients to raise cash. It
reducesdetail to a minimum, yet provides
a well secured procedure that insures
maximum protection to all parties.

Does your client have an involved inventory? “VIC"

is of greatest importance when you are considering loans
to manufacturers and distributors of food products, parts,
lumber or any other inventories where there is a great
variety of stored items and a rapid turnover. You will find
Douglas-Guardian's new “VIC” system the best instru
ment for protecting your loans . . . yet giving your clients
the flexibility they need in their business. Here, briefly,
is how it works:
The borrower deposits an excess collateral value
of inventory into the custody of the DouglasGuardian warehouseman for the account of you,
the lender. The borrower revolves that inventory
through purchases and sales, but never reduces
the value below an established “ minimum hold”
figure which you set. Douglas-Guardian supervises
and controls all this activity . . . and assures you
of a perfectly safe loan.

For full details, write or call

DOUGLAS-GUARDIAN WAREHOUSE CORP,
P. O. Box 52978, New Orleans, La. 70150 • Phone:
504 523-5353 • Offices in 15 Principal Cities.

N o rth w e ste rn Banker, O c to b e r , 1966

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

who must depend on the personal
touch.”
Obviously, a number of other expe
rienced bankers have found it practi
cal to have all or selected parts of
their work done on the EDP machin
ery of correspondent banks. Several
things have contributed to the growth
of this service in the N orthwestern
B anker area.
In Iowa, large city banks in the
major cities assigned a responsible
officer some years ago to follow devel
opments of EDP hardware so that the
banks could move in at the right time
when they were ready and get equip
ment to do the job in the way they
felt their banks could work for coun
try correspondent banks. One bank
works with several correspondents by
use of tele-data transmission over long
distance lines, while others give over
night, high-speed service by pickup
of items, processing and having re
ports delivered back out for the next
working day. The Central National
Bank and Trust Company, Des Moines,
uses the tele-data transmission sys
tem, along with a pickup system.
lowa-Des Moines National Bank, Des
Moines, and Merchants National Bank
of Cedar Rapids, were the pioneers
in Iowa of the traditional type of
bookkeeping work via EDP for corre
spondents and business accounts.
In Nebraska, The Omaha National
Bank pioneered the service center

-4-

EDP SURVEY . . .

(Turn to page 50, please)

A .B .A . Survey Report
Edgar T. Savidge, secretary of
the A.B.A.’s Agricultural Com
mittee, reported results from a
recent survey to bankers at the
late September Illinois Bankers
Agricultural Credit Conference.
The survey shows that four of
every 10 banks with substantial
agricultural loans are or will
soon be using computers.
The survey indicates that 15
per cent of agricultural banks
nationwide now have a computer
installed and operating, another
15 per cent use an off-premise
computer service, and 9 per cent
have plans to begin computer
processing soon.
The majority of banks neither
using computer services now nor
planning to do so in the imme
diate future are smaller banks.
Nearly 60 per cent of agricultural
banks in the west use or plan to
use computers. This proportion
decreases to 30 per cent in the
Corn Belt and Plains states.

Expect a lo t from your correspondent
when yo u r correspondent is the H a rris

A G R IC U L T U R A L O V E R LO A N S

LO B B Y D IS P L A Y S

M U N IC IP A L B O N D S

OATA P R O C E S S IN G

IN T E R N A T IO N A L B A N K IN G

C R E D IT IN FO R M A T IO N

H A R R IS 'S ? BANK
111 West Monroe St. • Chicago, Illinois 60690
O R G A N I Z E D A S N W H A R R I S & CO. 1 8 8 2 . I N C O R P O R A T E D 1 9 0 7 M E M B E R F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N . . . F E D E R A L R E S E R V E S Y S T E M

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Federal Reserve Bank of St. Louis

N o rth w e ste rn Banker, O c to b e r , 1966

G R O S S -F E I B EL

l*nblie
S ees W o rld S eries 1
C olor T V in itanh ??S ta d iu m 99
ployees wore baseball caps and
acted as hosts.
Vice President Dale L. Hilton
reports that 40 to 50 spectators
took advantage of the offer of
bleacher seats the first day last
year. Then, when word got
around about the excellence of
the color set and the fact that
customers a n d non-customers
alike were welcome, an average
of 100 people a day were in and
out during each game. Mr. Hil
ton estimates they consumed 75
pounds of peanuts in the shell,
over 200 sacks of popcorn, over
12 cases of pop, and uncounted
cups of coffee during the six days
the series was shown (closed on
Sundays)!
The bleachers were rented lo
cally and the color TV set was
furnished by a customer dealer.
The latter made at least two
sales of color sets within a short
time after the series from people
who had seen it at the bank.
To add a little extra luster to
this year’s series, Mr. Hilton had
“World Series Season Tickets”
printed and distributed them to
customers and non-customers in
the area of the bank.-—E n d .

next best thing to watch
T HE
ing the World Series in per

□

V A U LT D O O R S — A com plete range of
size s, fin is h e s and arch itrave d e sign s.

□

D R IV E -U P W IN D O W S — Flu sh and bay
d e sig n s with se rvice equipm ent to
m eet any requirem ent.

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26
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son with all the excitement and
atmosphere of that national spec
tacle is to watch it on a perfectly
tuned color television set, relax
ing with friends.
Morningside State Bank knew
it could not transport all its staff
and customers to the World Se
ries, but it did find a way to
bring the game to them in the
bank’s community room through
a color TV set—with as much at
mosphere as could be created.
The bank held such a viewing
of the World Series for the first
time in the fall of 1965 in its com
munity room. Bleachers with
“box” seats were set up in the
room and the bank provided pea
nuts in the shell, popcorn, pop
and coffee. The World Series
viewing met with such success
last year that it was repeated
again early this month with the
same format.
Signs directed people to the
basement community room sta
dium. Other signs showed loca
tions of “Rest Rooms” “Lounge,”
“Concessions,” “Box Seats” and
“ Players Only” areas. Bank em

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H
oS¿
•0» So
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1ê5 £*«

S A F E D E P O S IT B O X E S — Standard or
cu sto m u n its to fit any size space.

This Ticket Entitles the Holder to Any Seat (Bleachers or
Box Seats Available) in the Stadium for All BASEBALL
WORLD SERIES Games Except Sunday, The Action Will

-e, oiBHSor T«pW jhti.

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Three Chicago Promotions
□

Three promotions, two in the install
ment loan department and one in the

D E P O S IT O R IE S — A variety of d e sign s
and fin is h e s com plete with ch u te and
re ce iv in g ch est.
1
F. E. D A V E N P O R T & C O .

2066 Farnam St,, Omaha, Nebr.
□ Vault Doors □ Drive-Up Windows
□ Safe Deposit Boxes □ Depositories

trust department, were announced by
Irving Seaman, Jr., chief executive
officer, National Boulevard Bank, Chi
cago.
Oscar H. Fick was elevated to as
sistant vice president, James A. Draut
to assistant cashier in installment loan
and Lee E. Whitcomb was elected as
sistant trust officer.

Name_

Opens Panama Branch

Bank_

S tr e e t

The Bank of America opened its
43rd international branch last month
in Colon, Panama.

.State.

N o rth w e ste rn Banker, O c to b e r , 1966

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

FICK

DRAUT

W H IT C O M B

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

T h e y ' 11 be in San Francisco to attend the A.B.A.
convention. And they're taking a lot with them: news
about the Midwest, facts about our broad correspond
ent services, and the latest developments in international
banking. When you get to the convention, we hope
you'll have a chance to talk to them.

The First National Bank of Chicago
Building with Chicago and the nation since 1863 • Chicago, Illinois 60690
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

N o rth w e ste rn Banker, October, 1966

48
G

v u t l n n t e

d u c a t i o n

, •.

(Continued from page 40)
have a former head of the Presidents Council of Economic
Advisors. Another night it may be a top level State De
partment official discussing conditions in Asia.
The School of Banking of the South and The Southwest
ern Graduate School of Banking rely heavily on case
method of instruction and discussion groups while The
Graduate School of Banking at Wisconsin has tended to
rely heavily on lectures.
Housing—And Living Facilities

Banker students are assigned to regular college dormi
tories and have meals at the college dining halls. It is
difficult to satisfy everyone as to type of food and accom
modations. The food, however, is of a high quality and
of sufficient quantity to satiate all but the gourmet.
The dormitory facilities are such that typically two
bankers are assigned to a room.
A period of about an hour and a half is set aside in late
afternoon for recreation which includes facilities for
swimming, handball, volley ball, and tennis. One has to
be rather fast to get in nine holes of golf during the reg
ular school work week but from Saturday afternoon
through Sunday—those bankers who do not return to
their homes generally can make up a foursome at a local
course. At some schools a formal glee club or band is
formed.
While qualified women bankers are admitted to all of
the schools except at the University of Wisconsin the fact
remains that very few women attend, though women out

number males in banking by better than four to three.
Even if one compared the 14,000+ women officers to the
125,000+ male officers in banking, it still is disappointing
to observe the very small number of lady bankers who
attend the graduate schools of banking.

Timing

Most graduate school programs are scheduled for a
two-week period in the summer for three consecutive
years just after the regular college program finishes or
for a two-week period just before the regular fall college
semester starts.
Thus, the University dormitory and class space is avail
able for the bankers’ schools. It is unfortunate in one
sense that this period is also one in which the heaviest
drains are on a bank’s staff because of vacation. Some
banks have resolved this problem by having “students”
take their regular vacation at other than the period of
peak demand. Smaller banks have worked compromises
such as providing one additional week for attending the
school at the bank’s expense with the “student” making
up the second week from his regular vacation. A few
bankers find that they must attend the schools on their
own time and forego vacations, as well as defray their
own expenses. That they do so is a sterling indication
of their dedication to the banking profession.

Graduate vs. Basic-State Schools

There are several major differences between Graduate
Banking Schools — as distinguished from Basic-State
GRADUATE EDUCATION . . .

(Turn to page 50, please)

Plan Foundation Meeting

A G ood G roup
T o Represent
And T o
Insure I n !

Som e agency

C. Northcote Parkinson, humorist
and author of the famed “Parkinson’s
Law,” will address the annual meeting
sponsored by the Foundation for Com
mercial Banks at the St. Francis Ho
tel in San Francisco on October 22.
Invitations to the meeting are being
mailed to all banks by the Foundation.
Member and non-member bankers and
their wives are invited to the meeting
to be held at 4 p.m., followed by a
reception at 5 p.m.

Ch ir aff o H Vleo nt e

openings in the
Midwest’ s
fastest grow ing
grou p . . .
i
mill1 .
For The Best In
Multiple Line F acilities
Contact

Q it w u jw m jw

HOM E

700 FOURTH STREET
N ofor
rthFRASER
w e ste rn Banker, October, 1966
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

t)hXKA >p
O F F IC E

•

DES MOINES, IOWA

ABOUT 450 civ ic, business and
p o litica l leaders o f Chicago attended
a b rea k fa st recen tly in honor o f
President Ferdinand E. Marcos (ce n
te r) o f the P h ilippin es, during his
15-day tour o f the U. S. David M.
Kennedy ( le f t ) , board chairm an o f
Continental Illin ois N a tion a l Bank
& Trust Co., and M r. M arcos listen
as C h icago’ s Mayor Richard J. Daley
m akes a com m ent.

This is the Bank of Illinois,
Mount Vernon, Illinois

Like many banks o f all sizes, the Bank o f Illinois, Mount

rience and know-how o f our staff are always ready to help

Vernon, Illinois, has a New York “ office” through its

the Bank o f Illinois serve its customers. How can yo u r bank

correspondent relationship with First National City. Not

get these same benefits? Write or call our Correspondent

only in New York but in 44 countries on 5 continents

Bank Department (Area Code 212 559-4832) and we will

where First National City branches are located, the expe-

be pleased to visit you.

FIR ST

N A T IO N A L CITY B A N K
M em ber Federal Deposit Insurance Corporation

Uptown Headquarters: 399 Park Avenue

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

Downtown Headquarters: 55 Wall Street
N o rthw e ste rn Banker, O c to b e r , 1966

50
G

r a d i t a l e

Conclusion

••*

d a e a t i a n

(Continued from page 48)
Schools. One is in the level and maturity of the banker
student. Generally, those attending the Graduate Schools
are of higher rank and somewhat older than those attend
ing the State-Basic Schools. In both cases, however, the
academic background is noticeably improving from year
to year.
The Graduate Programs comprise two-week sessions
for three years, with assigned problems which must be
turned in during the first and second year. Typically,
the Basic-State Schools (though there are exceptions)
tend to be of shorter duration with a regular session of
one week and not lasting for the three-year period.
It is typical for junior department heads and senior tell
ers to select the basic schools and mature officers to sign
up for the regional Graduate Banking School.

EDP SURVEY . . .
(Continued from page 44)
technique, opening one in Grand Is
land a year ago after its own cen
ter in Omaha was in full swing.
Another will open in Scottsbluff at
the far end of the state in January.
Correspondent banks based around
these three areas can have overnight
service. National Bank of Commerce
in Lincoln is following this same sys
tem, preparing to open a center in
McCook at an early date, as a com
panion to the EDP center it operates

The Graduate School of Banking provides a valuable
facility for the typical experienced bank officer. He all
too often has become so engrossed in his own day to day
operations that he may need a fresh view not only of
bank operations but of the economy as a whole.
The classroom sessions help in a formal academic way
to bring him up to date on the latest thoughts in the
field. In addition, by discussing his own bank’s opera
tions and problems with a broad cross section of bankers
from other areas of the country he will learn frequently
how they have met similar problems.
The change of pace in attending a school as distin
guished from regular operations at the bank serves a val
uable function.
A Recommendation

Since most Graduate Schools of Banking are operating
at near capacity, now is the time to look into the possi
bility of attending one next year.— End.

at headquarters in Lincoln. The First
National Bank & Trust of Lincoln, U.
S. National of Omaha, and First Na
tional Bank of Omaha, operate corre
spondent EDP service from their
banks in Omaha.
In Minnesota, the Dakotas and Mon
tana, Northwest Bancorporation and
First Bank Stock Corporation were
early pioneers in the nation in refining
the tele-data transmission technique.
In addition, both holding companies
have well equipped service centers
located strategically in member banks

in Montana across to Minneapolis for
overnight processing service.
Question No. 5

Question 5 was: “Are the majority
of your monthly statements cycled? If
so, how?”
Of the 60 respondents, 36 said “Yes”
to this question, with Iowa being the
only state where the “No’s” outnum
bered the “Yes” answers. In Iowa it
was four “Yes” and six “No,” with
two not answering.

Question No. 5
"Are

the majority of your
statements cycled ?"

monthly

Yes 36 (60% )

MUNICIPAL BONDS
F O R IN V E S T M E N T
STATE
CO U N TY
C IT Y
SCH O O L
FREE FROM ALL FEDERAL INCOME TAXES
FREE FROM M ON EYS AND CREDITS TAX IN IO W A

No 24 (40% )

Of those that cycle statements, the
larger volume banks cycle four times
a month, the other banks most gener
ally cycle two times a month. In al
most all cases, it was stated that busi
ness statements are mailed the last of
the month. A number of replies also
stated that special checking accounts
are cycled so that each such customer
gets a statement every quarter.
Among those replying “No,” several
mentioned that statements are sent
when the customer’s sheet becomes
full.—End.

Thorp Shows Gains

T H E W H IT E -P H ILU P S

C O ., IN C .

DAVENPORT OFFICES
First National Bldg.

Phone 326-2527

Teleptype 319-322-0026

DES MOINES OFFICES
Fleming Bldg.

Phone AT 2-1456

N o rth w e ste rn Banker, O c to b e r , 1966

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

Teletype 515-261-4723

Thorp Finance Corporation has an
nounced that its earnings for the first
half of 1966 climbed to $804,914 as com
pared to $761,260 for the same period
in 1965. Per share earnings were 38
cents, compared with 35 cents last
year.
Total assets topped the $100,000,000
mark at $101,504,021, an increase of
$4,672,000 from the beginning of the
year.

►

AMERICAN BANKERS CONVENTION

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

SAN FRANCISCO, OCTOBER 2 3 -2 6

N o rth w e ste rn Banker, O c t o b e r , 7966

A r e a H o o k e r s S ee X e E asinfj
o f wT IG H T M O N E Y 99. . .

deterred justifiable projects. Money has been available
and increased interest rates are a small factor in the suc
cess or profitability of most projects.

(Continued from page 37)
have increased in the past year from 6 and 6 V2 per cent to
7 per cent with the exception of consumer credit loans,
which are discounted the same as a year ago, 5 and 6
per cent.
With good crops and good prices, our farmers and
ranchers are having a good year, and with agriculture
being our basic industry, our local economy is good. We
have not had a large municipal bond account but with
better rates we are increasing our portfoilio, although
we are staying in short maturities.
To sum up the situation, with inflation increasing,
these are certainly days to be cautious, but we must con
tinue to make available our facilities that will be helpful
to our communities, which include extending credit and
providing the service that is expected of a full service
bank.
HE outlook for money supply in our bank’s area for
I '1. the
next few months will continue to be very tight.
This is the time of year for new funds to move into the
banks, but much of this will be offset by C.D. run-off.
Loan demand continues to be very strong. It would ap
pear that interest rates will be more inclined to increase
than decrease. Lending has been definitely curtailed.
Loans are carefully screened as to purpose before they
are granted. We are hopeful that we will be able to
meet the normal operating needs of our customers. The
loan requests for expansion and speculation will have to
be postponed.
Tight money has very definitely had an effect on hous
ing and commercial construction. Some projects have to
be postponed for lack of funds and also because of the
high rate of interest required.
the money supply in our area will remain
1• THINK
moderately tight for the next few months, and I think
increased deposits from agricultural income will offset a
slight increase in demand.
It is my opinion, at least I hope, that interest rates on
time money have stabilized and will not be moving up
from the present 4% per cent being paid on six-month
certificates. I believe that rates on loans will continue
to move up a bit as we all have been slower in raising
these.
I don’t believe that tight money has had any noticeable
effect on construction or business expansion. It may
have postponed some speculative ventures, but it has not

N ofor
rthFRASER
w e ste rn Banke rt O c to b e r , Î96&
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

outlook for money in our area during the next
T HE
few months is that it will continue tight; however,
our position appears good and we should have funds
available for our customers’ normal demand.
Unless money tightens considerably, we anticipate no
additional increase in the amount we will pay on time
money, nor do we anticipate any additional increase in
the present rates we are charging our customers.
No, we have not had to curtail lending.
(a)
Slightly affected housing or commercial construc
tion.
(b) Slightly affected farm and business expansion.
(c) No, has not affected city projects.
(d) No, has not affected municipal bond issues.
for money has been stronger than the sup
DEMAND
ply and should continue for at least the next six
months. It would appear that interest rates on loans
have nearly reached their peak, for we have a 7 per cent
maximum in our state.
Our lending has been limited to financing inventories
and accounts receivable or, in other words, the day to
day business operations.
Real estate lending has been greatly curtailed. There
is a limited amount of money available for business or
farm expansion.
E BELIEVE the money supply in our area during
the next few months will remain moderately tight.
Money will be available for our customers’ legitimate
needs.
Most of the banks in our area are experiencing some
increase in time deposits and for this reason we doubt
very much if rates will be raised. This, of course, could
change if the city banks paying 5 per cent step up their
advertising in this area. If time money rates do not
change, we believe rates on loans will stay about where
they are. Our average rate now is 6 V2 per cent.
As I said before, we have had funds to take care of
the legitimate needs of our borrowers. We have made
a few real estate loans rather reluctantly and have dis
couraged some of our customers who wanted to borrow
for new acquisitions or unnecessary expansion.
House construction has been adversely affected in this
area, primarily because our largest savings and loan
company temporarily stopped making loans. We believe
they expect to be back in the market in the near future.
Business, farm and city projects seem to be progressing
as usual.

Ken Edge, vice president and cashier of the Farm ers Trust and Savings Bank in Spencer, Iowa, says
"Hy-Line M idwest Cage Layer Units are a good source of incom e for farm ers and bankers.”

"Our investment in Hy-Line Midwest
Cage Units pays off"
Hy-Line Midwest Cage Layer Units represent
a real income opportunity, according to Iowa banker
Ken Edge.“They help generate extra farm
income,” he notes, “and make excellent use of
available family labor.”
The Farmers Trust and Savings Bank has financed
eight Midwest Cage Units around Spencer.
“It usually takes three to four years to pay back
the loan we make on one of these poultry units,”
adds Mr. Edge. “Payback has been very good
on all of them.”
Distributors sell, service units
Over 100 farmers in Iowa, Minnesota, Missouri, and
North and South Dakota have Midwest Cage Units.

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

Many Hy-Line distributors work closely with local
bankers to help their customers obtain financing and
set up sound money management programs.
These Hy-Line Midwest Cage Unit owners can
expect to earn a good return on their investment.
Same holds true for you and your bank.
There’s less credit risk involved when you finance
a poultry operation filled with layers that
consistently prove their profitability.
That’s why bankers give Hy-Line layers the
credit they’re due.

Hy-Line
CHICKS

Dos Moines, Iowa
N o rthw e ste rn Banker, O c to b e r , 1966

Harry Gamage, vice president of the
St. Joseph Stock Yards D iv ision ,
United Stockyards Corporation, mod
erated the panel and set the stage by
immediately opening the discussion to
questions from the floor.

And the bankers responded! For the
complete time allotted to the panel,
questions on the broad gamut of the
livestock business were fielded by the
panel. Hands were still in the air
when Mr. Gamage was forced to call
a halt.
LIVESTOCK MARKETING IS THE SUBJECT, no doubt. From L E F T : H. H. “ Beanie”
Broadhead, Jr., v.p., F irst Stock Y ards B k., St. Joseph ; Carl G. Riggs, pres., State S a v
ings Bk., T in gley, Io w a ; Art McClaskey, a .v.p.; F irst S tock Y ards B k .; and William
G. Young, pres., State Savings B k., B ed ford , Iow a.

O ptim ism
Nebraska, Missouri and Kan
I OWA,
sas bankers gathered last month at
the St. Joseph Stock Yards for the 10th
consecutive year to hear market ex
perts discuss the livestock outlook.
Occasion was the 10th Annual Mar
ket Day sponsored each year by the
First Stock Yards Bank of St. Joseph
for their correspondent banks.
“A good time was had by all” might
be the best way to evaluate the day,
for though the usual outstanding meal
was served and the usual outstanding
hospitality was extended . . . the most
important offering was the news that
the livestock market should stay very
strong and may even improve in the
months ahead.

Covers Canada...Spans the World
With over 1000 b ra n ch e s throughout
Canad a and around the world and an
international network of corre sp o n d
ents — the B a nk of Montreal is well
qualified to help you and your clie n ts
north of the border and throughout
the world. Write or visit any one of
our five United States offices.

B a n k of M o n trea l
C A N A P A 'S F I R S T B A N K

Corns Ca/noda Spamtka llWGcl
CHICAGO: Board of Trade Bldg.
141 West Jackson Blvd.
NEW YORK • HOUSTON • SAN FRANCISCO • LOS ANGELES
MORE THAN 1000 OFFICES • Assets Exceed $5 Billion

No rthw e ste rn Banker, O c t o b e r , 1966

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

a t St. •/«(■
As usual, a large and enthusiastic
crowd was on hand for the meeting.
... ...................... ..... _ T h r o u g h t h e
years, Tom Mc
C u llou gh , presi
dent of the First
Stock
Yards
Bank,
H. H.
“B ea n y ” Broadhead, vice presi
dent, and Art Mc
Claskey, assistant
v ic e p resid en t,
have presented a
T. j. M cC u l l o u g h
solid program of
information of value to the country
bankers in attendance, This year
more than 250 bankers and guests re
sponded to the invitation and came
to gain what information they could
in helping their customers with their
livestock problems.
Activities included a tour of two St.
Joseph packing plants, Swift and Ar
mour. The group was then treated
to lunch at the yards. Then, with the
help of “Beanie” Broadhead’s direc
tions, the group moved to the St. Jo
seph Country Club for the afternoon
program and dinner.
Featured speaker was E. Y. Lingle,
president of Seitz Packing Company,
who discussed the advantages of mar
keting livestock through a central pub
lic market. He pointed out that buy
ers generally prefer to function on
the central market because they have
a much greater selection to pick from
to fill packers’ orders.
However, he also said that buyers
generally feel that they can buy the
livestock cheaper on the farm by deal
ing with the farmer direct rather than
with the commission man on the cen
tral market who is much better in
formed on the market situation.
The market outlook information
was presented by a panel of men from
the Stock Yards in usual fashion.

Members of the panel were Earl
Pinckard, general sales manager for
Swift and Company; Joe Treu, cattle
salesman, Swift and Henry Live Stock
Commission Company; Keith Walker,
hog salesman, National Live Stock
Commission Company; Paul Dutton,
Dutton Sheep Commission Company;
Fred Hertz, Morris Hertz & Son Cattle
Company, and Buddy Bonfy, hog buy
er, Wilson Packing Company.
In general, the panel spoke in very
optimistic terms about the livestock
business in months ahead. More spe
cifically, the following situation was
outlined for each type of livestock:
• Fat cattle prices should go up $1
to $2 during the next 60 days. One
panelist went so far as to say that the
cattle business looks very good for
the next two or three years. An in
creasing demand with a fairly stable
supply points toward a continuing
strong market in years ahead, he said.
• It seemed possible, said one panel
member, that the current high corn
prices might encourage farmers to
market their corn direct this fall
rather than in the form of beef. Thus,
fewer cattle may go on feed, he felt.
• Light feeder cattle and calves are
going to be hard to find, and will de
mand a high price from the feeder.
• Stock cows will also go higher be
cause of short supply.
• Hog prices should top out at about
$21 per hundred, but will fall back
some after January 1.
• Lamb and mutton market should
continue to be very strong, as more
farmers liquidate their small flocks.
Paul Dutton spoke strongly for the
profit potential in a 20 to 30 ewe flock.
Investment is low . . . cost of gain is
low . . . supply is not adequate to
meet demand, limited though it may
be, he pointed out.
The traditional steak fry climaxed
the Market Day activities, and the re
sults were outstanding. “Chefs” Don
Spalding, president of the St. Joseph
Stock Yards Company, and Russ Hallberg, Armour and Company, ably
turned out what were termed “the
finest steaks to go through the St.
Joseph Stock Yards.”— End.

The Man from Old Security offers you increased income.

Do y o u h a v e a m in u te ?

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It usually happens fast. W e know from experience that
when you suggest and explain this creditor insurance
package with its built-in protection, loan customers can
quickly see the advantages. Meanwhile, you're earning
liberal commissions because Old Security offers you a
wide range of profitable plans, plus fast, direct service.
W h y pass up extra profits on loans? Ask the Man from
Old Security to tell you more!

y
—

Paul Hamilton, Jr.
President

James W. Green
Vice President-Actuarial

Howard Strickland
Treasurer & Controller

L. W. Jurden III, C.P.A.
Bob H. Crosswhite, C.L.U.
Vice President-Underwr ting & Claims Vice President-Systems & Procedures

A. J. Blasco
Senior Vice President

Ross F. Forbis
Assistant Vice President-Sales Manager

Paul R. Stewart
Secretary & General Counsel

Fred N. Coulson
Vice President-Sales

H. H. WeMott
.
Assistant Vice President-Underwriting & Claims
George D. Gee
Chairman of the Board

Call us for credit life, credit accident and health, credit fire, mortgage protection plan, auto physical damage, travel I accident and other profitable insurance plans.

OLD SECURITY LIFE INSURANCE COMPANY • OLD SECURITY CASUALTY INSURANCE COMPANY • EXECUTIVE OFFICES, BROADWAY AT 34TH TERRACE, KANSAS CITY, MISSOURI 64141

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

N o rth w e ste rn Banker, O c to b e r , 1966

P la n A g C red it C on feren ee
1ANKERS serving the credit needs
of agriculture will meet under the
theme “Financing Food for Peace”
when they convene in Minneapolis,
November 13, for the 15th National
Agricultural Credit Conference.
The conference — sponsored by the
Agricultural Committee of The Amer
ican Bankers Association — will be
held at the Leam
ington Hotel, No
v e m b e r 13-15.
T h e o d o r e E.
Brown, chairman
of t h e A.B.A.’s
Agricultural Com
mittee and presi
dent, The Secu
rity State Bank,
S terlin g, Colo.,
w i l l p r e s i d e.
T. D. B R O W N
Nearly 800 bank
ers are expected to attend.
Two featured speakers will address
the conference. One is The Honorable
George McGovern, U. S. Senator from
South Dakota, who will speak at a
dinner meeting Monday, November
14. The other is Jack T. Conn, presi
dent-elect of The American Bankers
Association, and chairman, Fidelity
National Bank & Trust Company,

Oklahoma City, Okla. Mr. Conn will
speak at Tuesday’s luncheon.
Speakers at the opening session on
Monday morning will include Dr. C.
F. Davan, Jr., director of agricultural
market research, International Miner
als & Chemical Corporation, Skokie,
111., and Dr. Emery N. Castle, head,
Department of Agricultural Econom
ics, Oregon State University, Corval
lis, Ore.
A special attraction of the opening
session will be a panel discussion en
titled “ Speaking Frankly,” in which
two farmers and two bankers will dis
cuss farm credit from both sides of
the fence.
A second panel discussion — this
time on “Bank Funds for An Expand
ing Agriculture”—will open Monday
afternoon’s session. It will be fol
lowed by a series of bull sessions.
Tuesday’s session will be addressed
by Dr. Don Pearlberg, professor of
agricultural economic policy, Purdue
University, Lafayette, Ind., who will
speak on “Productive Capacity of U.
S. Agriculture.” He will be followed
by Hugh D. Galusha, Jr., president,
Federal Reserve Bank of Minneapolis,
who will discuss “Rural Resources De
velopment.”

t irst of Chicago Promotions

N. M cK A Y

B e ou r g u est

. .

W e’re just
across the street. . .

Jack W. Hallberg has been advanced
from assistant vice president to vice
president by the First National Bank
of Chicago.
After joining the bank in 1954, he
was assigned to the correspondent
bank department in 1956 and traveled
the N orthwestern B anker area. In
1960, he was elected assistant cashier,
and in 1965, he was elected an assist
ant vice president. He is currently in
charge of the northeast territory for
the bank’s correspondent department.

C. R. E l CH EN BERG ER

Arthur F. Stake, who is in charge of
the Chicago area for the correspond
ent division, has been advanced from
assistant vice president to vice presi
dent. He joined the bank in 1949.
Also elected vice presidents were
Kenneth A. Willen and John A. Anderlik, Division “D,” and Richard E. Wil
ier, Division “G” of the Commercial
Banking Department.

While you are at the convention, we cordially invite you
to visit our Home Office and Des Moines Regional Office
. . . just across the street! We welcome the opportunity
to discuss your bank coverages as well as your agency prob
lems with you. O f course, you are cordially invited to visit
our Hospitality Headquarters in Hotel Fort Des Moines, too.

H aw keye-Security
H A W K E Y E -S E C U R IT Y IN S U R A N C E C O M P A N Y • DES M O IN E S
DES M O IN E S R E G IO N A L O F F IC E • 1017 W A L N U T

N o rth w e ste rn Banker, October, Î966

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

W IL L E N

A N D E R L IK

W IL L E R

Clarence R. Eichenberger, senior
vice president in Loan Division “C,”
has retired after 47 years of service.
Neil McKay will succeed him as head
of the division.

Resigns ABA Office
Carter H. Colembe, deputy manager
and secretary of the State Bank Divi
sion in the Washington Office of The
American Bankers Association, will
resign from the A.B.A. effective No
vember 1, 1966,

WtïV

bankers
trust
BankersTrust.

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

Not just because we’re bankers.
But because we’re bankers who’ve developed so many special skills
in handling money.
And these special skills are what out-of-town bankers have learned
to trust for their dealings in the New York money market.
At Bankers Trust, Securities Services include every facility you could
need.
For Custodian Accounts we’ll keep your securities locked up safe, and
do all the coupon-clipping and paper work besides. (We’ll even main
tain a special post-office box for you so your dividend money never
floats around.)
Not only are we a primary dealer in U.S. Government and Agency
securities, but our people know pretty much all there is to know about
all types of investments. And that keeps you in the know, too.
So if you’re not one of the hundreds of banks and trust companies
doing business with Bankers Trust, what’s the matter?
You can trust us.

Yoii11findabanker
atBankersTrust.
© Bankers Trust Company, 1966.

Member Federal Deposit Insurance Corporation

N o rthw e ste rn Banker, O c to b e r , 1966

"iH om e
R ep a ir
I V » fita b le to R anhs **—F ren tz

Bank of Bloomfield, Mo., and has
served as a director and officer since
1939.

modernization and repair
HOME
loans can be a source of more

B o f M Appointments

profit than is obtainable from most
other types of installment loans, said
Arthur J. Frentz, president, Insured
Credit Services, Inc., Chicago, in an
address before the
14th annual con
ference of the In
stallment C redit
S ection , T exa s
Baankers Associ
ation in Houston.
Mr. F r e n t z
cited as an exam
ple a $2,500 auto
m o b ile loan for
three years at a
A . J . FRENTZ
$4.50 rate com
pared with a $2,500 garage loan for
five years at a $6.50 rate. “For about
the same amount of effort,” he said,
“the bank picks up $475 additional
finance charge.”
In commenting on rates, Mr. Frentz
said add-on rates of 6 and 6 V2 per
cent are now prevalent in home im
provement financing. He pointed out
that the finance charge on $100,000
of 42-month paper at 5 per cent is

$17,409 but at 6 per cent it is increased
to $21,128, a gain of 21 per cent. Also
mentioned was a bank whose consum
er credit portfolio had a ratio of un
earned discount to net outstandings of
8.89 per cent. By pushing “own plan”
home improvement lending, the bank
had $561,0000 of repair loans on its
books within a few months. This in
creased the ratio of unearned discount
to net outstandings from 8.89 to 10.2
per cent.
Mr. Frentz stressed the importance
of obtaining complete credit data on
a loan applicant at the time of the
interview. “We need as much ‘Truth
in Borrowing’ today as we do ‘Truth
in Lending’,” he said. “Any ‘Truth in
Lending’ program should include a
full disclosure of credit history by the
borrower. Consumer lending is a twoway street.”

Leo A. Fisher, a director, has been
elected to the newly created position
of chairman of the executive commit
tee of Bank of St. Louis.
Mr. Fisher was a founder of the

IF you plan to sell your bank and you want—
1. The lop market price;
2. A purchaser you can be proud to introduce as your
successor;
3. The sale effected confidentially with little effort on
your part;
H en ry H . Byers

THEN, before you make commitments
to anyone, consult us without expense or
obligation . Let us show you how our
knowledge of the market, long experi
ence and nego tiatin g skills can be profit
able to you.

Myron E. Karsten

Bankers Service
Corporation

1301 Register and Tribune Building
Telephone 515— 244.3113
DES M OINES, IO W A 50309

"Serving Banks and Bankers Since 1948"
R ich ard C . New lin

N o rth w e ste rn Banker, O c to b e r , 1966

D. R. M cC A L LU M

C. E. N O B L E T

Mr. McCallum has been manager of
the principal London office since 1963.
He was previously superintendent of
the international division at the head
office in Montreal and served exten
sively at branches in Ontario.
Mr. Noblet has been the bank’s sen
ior executive officer for the Continent,
in Paris, since early 1965. He was
previously an assistant general man
ager and manager of the main Van
couver branch and served extensively
in Eastern Canada.
Both Mr. McCallum and Mr. Noblet
will report to E. R. Ernst, general
manager, international banking at the
head office.

Arizona Banco Resignation

Hundreds of sincere, carefully investi
gated purchasers registered with us.

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

Name St. Louis Executive

BANKS WANTED

We’ll look forward to seeing you at
the Iowa Bankers Convention.

Appointment of Donald R. McCallum
as assistant general manager for the
United Kingdom and manager, Lon
don branch, and of C. E. Noblet as
assistant general manager for Conti
nental Europe, resident in Paris, has
been announced by G. Arnold Hart,
chairman and president of the Bank
of Montreal.
The appointments follow the retire
ment of John A. Hobson, general man
ager for Europe, after a distinguished
banking career of 43 years.

Walter R. Bimson, chairman of the
executive committee of Arizona Bancorporation, announced that Leslie
Wood, president of Arizona Bancorporation, had offered his resignation as
president and director of the corpor
ation and as an officer and director of
the various companies affiliated with
Bancorporation, in c lu d in g Arizona
Bank and Allison Steel.
Lloyd A. Bimson, chairman of the
board of Bancorporation, was elected
president and will continue to serve as
chairman.
Francis E. Cooper, presently secre
tary-treasurer of the corporation, be
comes executive vice president and a
director, and D. W. Mitchell was
elected secretary-treasurer.

Keep Them
Coming Back
T o You
H ow banks will
sell over 22 million
D eLuxe checkbooks
this year

N C H IC A G O , 9 7% of a bank’ s checking
account customers purchase their own checks.
In St. Paul, a bank says “ 98.1% .” In other cities
and towns across the country, hundreds of banks
report similar high percentages of sales. Over 22
million DeLuxe personal and business checkbooks
will be sold to bank customers this year, yet only
a small percentage of these checks will be sold
through personal salesmanship. For the most part,
they will be reorders. More than 8 out of 10 orders
we produce are repeat orders.

Reorders— nearly automatic reorders— are the
key to the success of merchandising Personalized
Checks. W hy do banks get such phenom enal
repeat business? Customers run out of checks and
they simply order more? True enough. But they
don’t have to buy Personalized Checks. Free checks
are universally available. Then why do they buy?
Back when the customers received their last
orders, their D eL uxe checks were delivered
promptly, correctly. They were protected in a
sturdy outer carton and attractively packaged in
an inner carton. Everything about the checks . . .
the cover, the paper, the printing and binding

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

DELUXE
N ORW ALK
•
K A N SAS C IT Y

suggested quality and value. As the customers
used the checks, they experienced their utility and
convenience, their consecutive numbering and
ease of record keeping . . . their prestige.

AS YOU BEGIN TO USE THIS PAD OF CHECKS. ORDER A NEW SUPPLY BY SENDING THIS AUTHORIZATION TO BANK

CHECK QUANTITY DESIRED

} 200

301

mfc*°“
OUT ,NCOMiCT1
COPY ANO MARK ANY

M A R Y A . M O R R ISO N

“IcHANGISORADDITION*!

1765 SHERIDAN DRIVE 583-5353
YOUR CITY, U. S. A. 60618

■M
0 0 -5 6 7 8
Jr” 12 3 4

200

; . j 400

[ J800

r ......

DELUXE N A T IO N A L STATE B A N K

• : j. 2 a u - 5 E ,v a n

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MAIL TO Y O U « BANK IN THE ENCLOSED E N V U O P I. -

D E L U X E

C H E C K

P R IN T E R S .

IN C .

PERSONALIZED CHECK REORDER

The reorder form was there when they reached
the last filler of checks, completely printed and
encoded for the next order. In the bottom of the
box was a mailing envelope. Seal, stamp and mail
. . . another reorder.
The selling for the reorder began with prompt
delivery and continued throughout the period
with customer satisfaction. This is how banks are
selling 22 million orders. With your bank offering
our selection, it will be more next year. Call us in.

C H E C K P R I N T E R S , INC.

C L IF T O N
. P A O L I • R IC H M O N D
. SYRACU SE
.
CLEVELAN D
. D E T R O IT
.
S T . L O U IS
•
ST. PAU L
.
H O U STO N
.
D ALLAS
•
CH ATSW O RTH
.

I N D IA N A P O L IS
SAN TA CLARA
•

C H IC A G O
PO R TLAN D

N o rth w e ste rn Banker, October, 1966

To Hoad Hank 117om en
RS. MONA CUNNINGHAM, vice
M
president of the Union National
Bank of Wichita, Kan., has been
elected president of the National As
sociation of Bank Women, Inc.
She was elected at the closing ses
sion of the NABW October 13 in
New York. Mrs.
Cunningham suc
ceeds Miss Elea
nor A. Kropf, sec
ond v ic e p r e s i
dent in the per
sonal trust plan
ning division of
the Chase Manh a t t a n Bank,
N.A., New York,
as
p r e s id e n t of
M RS. C U N N IN G H A M
the NABW, a national professional organization for
women bank officers.
Mrs. Lillian T. Wilkins, vice presi
dent, Peninsula Bank and Trust Com
pany, Williamsburg, Va., was elected
vice president of the NABW.
Other top officers for 1966-67 are re
cording secretary: Miss Barbara Pen
dleton, vice president and secretary,
Grand Avenue Bank & Trust Com
pany, Kansas City, Mo.; corresponding
secretary: Mrs. Hilaria Corrigan, as-

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A Mutual Company—William C. Safford, President

Nofor
rthw
e ste rn Banker, O c to b e r , 1966
Digitized
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

sistant vice president, Fourth Nation
al Bank & Trust Company, Wichita,
Kan., and treasurer, Miss Audrey L.
Belt, assistant treasurer, American Se
curity & Trust Company, Washington,
D. C.
Regional vice presidents installed
by NABW for the coming year from
N orthwestern B anker area are:
North Central Division: Miss Mary
C. Loucks, cashier, Rushmore State
Bank, Rapid City, S. D.
Northwestern Division: Mrs. Lorintha B. Yerke, assistant cashier, Na
tional Bank of Commerce of Seattle,
Yakima, Wash.
Rocky Mountain Division: Mrs.
Norma C. Uzelac, assistant cashier,
Farmers State Bank, Woods Cross,
Utah.

New FDIC Booklet
“ Symbol of Confidence” is the title
of a new booklet issued by the Fed
eral Deposit Insurance Corporation.

V f'ir

It describes the background, functions
and operations of the FDIC.
Disbursements by the corporation
in all insurance transactions from
1934 through 1965 have amounted to
$402 million. Recoveries made or ex
pected have been $360 million, result
ing in a net loss of $42 million. Of
the 14,324 banks in the United States
at the end of 1965, a total of 13,876
were insured by the FDIC.

Joins West Coast Bank
Louis C. Jalving, formerly with the
National Bank of Detroit, has joined
the staff of the Bank of California in
Portland and has been elected an as
sistant vice president, announces Don
ald M. Russell, senior vice president
and manager.
Mr. Russell and Mr. Jalving will
handle correspondent bank relation
ships throughout Oregon, Idaho, Mon
tana and Southwestern Washington.
The Bank of California’s office in Se
attle also serves Montana.

T a d em a rk

HE North Central Companies, St.
T Paul,
have announced the adoption
of a new trademark to be a permanent
identification of its family of firms op
erating in the fields of insurance and
financial planning.
Theodore Sanborn, president of the
parent firm, North Central Company
of St. Paul, said
the new tra d e
m ark has been
ad op ted by the
firm and its sub
sidiaries, N o r t h
Central Life In
surance Compa
ny, and N o r t h
P r o t e c t i o n al l w a y s Cential Financial
Planning Corpora
tion, both of St. Paul; Maine Fidelity

fo N orth

Life Insurance Company, Portland,
Me.; West Virginia Life Insurance
Company, Huntington, W. Va.; and
Royal Oak Life Insurance Company,
Pittsburgh, Pa.
The new North Central Companies’
trademark, Mr. Sanborn said, is com
posed of crossed, double-tipped arrows
in a circle. According to American
Indian lore, he explained, two crossed
arrows meant protection. Arrowheads
pointed in four directions, he con
tinued, meant protection all ways. The
circle, Mr. Sanborn said, is the symbol
of endless time—eternity.
“Arrowheads pointing in four direc
tions inside the circle of eternity
means “Protection All Ways”—always
is available through the North Cen
tral Companies,” Mr. Sanborn stated.

For "Year Round' Advertising that

WORKS

Contact

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

The Birthplace of the Art Calendar Industry

168 banks in the i IS
have b
Irving ' 2rust
for over 50 years
W hat makes us wear
so well?

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Federal Reserve Bank of St. Louis

No rthw e ste rn Banker, O c t o b e r , 1966

San

Francisc

~iC

(Continued from page 31)
ports and decor can be found every
where in the city, the sector around
Post and Buchanan Streets has the
thickest concentration of Japanese im
port shops, grocery stores and homestyle restaurants. At the moment, this
small but burgeoning Ginza is stand
ing stolidly on the brink of a construc
tion project that is part of the
planned redevelopment of an anti
quated district called the Western Ad
dition. Japanesetown will gain great
face when the project is completed
for it incorporates a handsome Japan
ese cultural center with appropriate
landscaping and a five-tiered pagoda.
Though removed from “Little Ja
pan,” the Japanese Tea Garden in
Golden Gate Park is part of the same
heritage. With its torii gates, tea
house and Buddhist and Shinto shrines
set among lily ponds, flowering shrubs
and Japanese cherry trees (a glorious
sight in April!), it could be a tranquil
corner of Kyoto or Nikko.

A S SAN FRANCISCO’S Bohemia,
-¿A- Telegraph Hill has long had
something of the spirit of Paris’ Mont
martre and St. Germain des Pres. At
one time, its narrow alleys and cliff-

W here the Twin Cities M eet
m

id w

a y

MOTOR LODGE

hanging frame houses were inhabited
almost exclusively by working artists,
writers and literati. Then came the
picturesque Beatnik era, now past. In
recent years the complexion of the
hill’s upper stratum has been changed
by posh apartments and an influx of
ad agency reps and affluent socialites,
but its lower reaches still abound with
off-beat cafes, boites and coffeehouses.
Another Gallic tradition that has
caught on with San Franciscans is the
sidewalk cafe. There’s a well-patron
ized one, complete with kiosk, on
Broadway where you can enjoy the
popular French spectator sport of sar
donically eyeing the passersby while
sipping an aperitif.
The Marina, a forest of yacht and
sailboat spars, and Fishennan’s Wharf,
where the fishing fleet ties up amid
a colorful jumble of drying nets, boil
ing crab caldrons and Italian-run sea
food restaurants, could be scenes
painted in a Mediterranean village like
portofino or St. Tropez.
olden

gate

p a r k ’s

domed-

G glass Conservatory is said to be
patterned after the Royal Observato
ries in London’s Kew Gardens. At the
southwestern extremity of the Park’s
1,017 sylvan acres stands a great stone
windmill, like a fleeting glimpse of
Holland.
Vestiges of the city’s Spanish birth
right linger on in its street and place
names (Junipero Serra, Arguello Portola, Laguna Honda, San Jacinto); in
the Presidio where the officers’ club
is housed in a 1776 adobe building
which is the city’s oldest; about the
Mission Dolores, erected by the Fran
ciscan padres in 1782 with Indian la
bor, and the historic graveyard which
adjoins it.

AN FRANCISCANS are Continen
tal in their love of the arts. They

support an opera company with a
glittering tradition, a symphony or
chestra in its 53rd season, a ballet
which has won world acclaim, an In
ternational Film Festival entering its
ninth year, more than a dozen art mu
seums and galleries, legitimate the
aters which draw top offerings from
Broadway and London, an astonishing
number of small movie-houses special
izing in film classics and new foreign
productions and flourishing flock of
little theaters.
The city is renowned for the quality
of its restaurants and their cosmopoli
tan variety. One gourmet guide cate
gorizes them as “Armenian, Austrian,
Chinese, French, German, Indan, Ital
ian, Japanese, Jewish, Mexican, Phil
ippine, Russian, Spanish, Seafood, At
tention Steak-eaters, the Big Splurge
(1‘haute cuisine in sumptuous sur
roundings)” . . . and the list’s not
complete, at that.
For those lacking the time or where
withal to make a world tour this year,
San Francisco has a condensed version
—no passport needed!—M. Booker.

T. €. HENDERSON & CO., INC.
Established 1930

MEMBERS

MOTOR HOTEL
Take your Pick — 2 Famous Restaurants and
Cocktail Lounges — Mr. Joe’s and Inn of the
Black Knight. 2 Swimming Pools — Indoor
Heated Pool / Large Outdoor Pool and Patio.
230 Luxurious Guest Rooms and Suites — All
Air-Conditioned, Radio and TV.
Singles-$9.75

Doubles-$12.75

Twins-514.75

Northwestern
Banker, October, 7966
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NEW YORK STOCK EXCHANGE » CHICAGO BOARD OF TRADE
CHICAGO MERCANTILE EXCHANGE • N EW YORK M ERCANTILE EXCHANGE
MIDWEST STOCK EXCHANGE • AM ERICAN STOCK EXCHANGE (Associate)

Underwriters

•

Distributors

•

Dealers

Brokers

6th & Grand, Des Moines, Iowa
Mason City • Sioux City
Burlington • Cedar Rapids * Davenport
Fort Dodge
T. C. Henderson, Pres.
S. R. Henderson, Exec. Vice Pres.
L. H. Flower, Vice Pres.
E. A . Petersen, Vice Pres.
T. J. Landstorfer, Vice Pres.
K. C. Shreve, Vice Pres.
G. D. Kaufman, Vice Pres.

John Hunt, Vice Pres.
Irwin M. Brenner, Vice Pres.
Robert J. O’ Neill, Asst. Vice Pres.
Frank Miller, Asst. Vice Pres.
Gordon Taylor, Asst. Vice Pres.
Arnold B. Anderson, Jr., Asst. Vice Pres.
Wilma Saylor, Asst. Secy.
Charles F. Michael, Jr., Asst. Treas.

A U T O M A T IC COIN W R A P P E R
A m o unts and d e n o m in a tio n s a u to m a tic a lly in d ic a t e d by
pate n te d “ re d bordered w in d o w s ” . A m o u n ts in window s
alw ays in reg ister . . . e lim in a te s m is tak e s . A ccom m odates
all coins fro m lc to $1.00.
T U B U L A R COIN W R A P P E R
Especially designed for m a c h in e fillin g . . . a real tim e-saver.
Packed fla t. In s ta n t pate n te d “ Pop O p e n ” action w ith fin g e r
tip pressure. D en o m in a tio n s id en tifie d by color coding . . . 6
d iffe re n t stan d a rd colors.
R A I N B O W COIN W R A P P E R
Color coded fo r quick, easy id en tific a tio n . Red fo r pennies . . .
blue fo r nickels . . . green fo r dim e s . . . to in dicate q u a n tity
and d e n o m in a tio n s . . . e lim in a te s m istakes. T ap ered edges.

O L D S T Y L E C O IN W R A P P E R
Basic coin w ra p p e r in extra strong k ra ft stock. Printed in 6
d iffe re n t stan d a rd colors to d i f f e r e n t i a t e d e n o m in a tio n s.
T r ip le d e s ig n a t io n th r o u g h colors, p r in t in g and letters.
Tapered edges.
K W A R T E T C O IN W R A P P E R
W raps 4 d e n o m in a tio n s in h a lf size packages. A m in ia tu re of
th e po pular “ A u to m a tic W r a p p e r " . . . 25c in pennies, $1.00 in
nickels, $2.50 in dim es, $5.00 in q u arte rs .
F E D E R A L B ILL S T R A P
P ackage contents cle a rly id en tifie d on faces and edges by
color coded panels w ith in verted and reverse figures. M ade
o f extra stro ng stock to assure unbroken deliveries. Only pure
dextrine g u m m in g used.
C O L O R E D B IL L S T R A P
Entire strap is color coded to id en tify d e n o m in a tio n . Printed
a m o u n t appears on top and bo ttom of package. Extra w ide
fo r m arkin g and stam p in g . Extra stro ng stock fo r safe delivery
and storage. Pure dextrine g u m m in g .

8
D U Z IT A L L COIN W R A P P E R
Extra w ide . . . extra strong. D esigned fo r areas w h e re halves
are w ra p p e d in $ 20.00 packs . . . “ red bordered w in d o w ” fo r
ease o f id en tific a tio n . A ccom m odates $ 20.00 in dollars, $20.00
in halves. T a p e re d edges.
9 BANDING S T R A P S
Id eal for packing currency, depo sit tic k e ts , checks, etc. . . . do not break
or d e te rio ra te with age. Size 10 x h inches and m ad e of strong brown
K raft stock w ith g u m m ed end fo r ease of sealing. Packed 1000 to a carton .

S E E

THE

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Federal Reserve Bank of St. Louis

DOWNEY

Y O U R

D E A L E R

COMPANY

•

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FOR

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MISSOURI

DEPT.

No rthw e ste rn Banker, O c t o b e r , 1966

C entennial

Y ea r

fo r Om aha N a tion a l

■A

(Continued from page 33)
Omaha National Bank when World War II erupted in
1941, just as it did for other businesses. The technical,
managerial and leadership skills of much of its younger
management were called upon by the Armed Services
and a war-geared government. President Clark and his
experienced hands who were left with him kept their
bank in the forefront as a banking leader in the state.
Four years later the ONB had deposits of $183.8 million
on December 31, 1945.

Scene 2
1945-1966

The post-war period replenished the manpower reserve
of the bank and in 1949 Mr. Clark moved up to chairman
of the board and turned the active position as president
over to popular W. B. Millard, Jr., grandson of J. H.
Millard. Bob Millard served as president until 1962, at
which time he became chairman of the board and was
succeeded as president by Morris F. Miller, who holds
that position today. Mr. Millard has worked at The
Omaha National since graduating from Yale University
in 1924. Mr. Miller has been a banker since 1946 and
joined The Omaha National in 1951. Both men returned
from World War II as lieutenant colonels in the army.
In the 20 years following the end of hostilities in 1945,
The Omaha National Bank under Bob Millard and Moe
Miller has added more than $100 million to deposits. Last
years-end they were $283,768,218. In the same period
assets increased from $191,179,806 to $331,878,643.
The Omaha National Bank has been the largest bank
in Nebraska for a number of years. It serves hundreds

of correspondent banks in communities from Iowa
through the Rocky Mountains and from Kansas through
South Dakota. Its interests are closely allied to the agri
cultural industry, especially livestock, as is true with
other major banks in the state.
Considerable impetus to ONB’s growth was achieved in
August, 1954, when Chairman Clark and President Millard
consummated a merger of the Live Stock National Bank
of South Omaha into The Omaha National Bank. Henry
C. Karpf, president of Live Stock National, became ONB’s
vice chairman of the board, and every officer and staff
member was invited to join the ONB staff at the same
level of responsibility. Considered by many in the bank
ing field to be the smoothest merging of two banks to
date, the ONB continued its growth in the ensuing 12-year
period.
Today, the bank has close to 600 employees, 200 times
more than the three employees who started the bank in
1866. It is interesting to note that capital likewise has
grown in the same measure—by 200 times. It was $50,000
on opening day and presently is $10,000,000. Where there
were seven stockholders in 1866 there are now 2,100.
All of this growth has made the need felt for some time
for completely new quarters. They are under construc
tion at this time, directly across the street west from the
present building. Omaha’s historic City Hall building
and the Woodmen of the World Life Insurance Company
building were razed and the insurance firm is erecting
CENTENNIAL YEAR . . .

(Turn to page 66, please)

22-Story Operations Center

Municipal
Bond
Specialist
R ichard D. M c F ar la n d , Vice President of Kalman
& Company, spends much of his time with bankers
demonstrating how substantial tax savings can be
made by investing intelligently in state and municipal
bonds. He has a great deal of experience in this field.
Let him show you why municipals offer an excellent
combination of tax-free income, safety, high quality,
diversification, flexible planning and marketability.

Kalman & Company, Inc.
Investment Bankers— Established 1909
MINNEAPOLIS: 501 Second Ave. S.— 339-8931
ST. PAUL: Endicott Bldg.— 244-3303
n o r th w e s te r n Banker, O c to b e r , J966

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

Manufacturers Hanover Trust Com
pany, New York, has announced it
has signed general contractor and
architectural contracts for construc
tion of its 22-story operations center
in downtown Manhattan. The bank
expects to occupy the building by
January 1, 1969.
Walter F. Thomas, executive vice
president in charge of Manufacturers
operations, said preliminary plans for
the building call for “a straight up
and down structure set off by sizable
plazas on the north and west sides
and enhanced by the proposed new
extension of Jeannette Park on the
east.”

ONE-MAN FIGHT . . .
(Continued from page 39)
Upper Iowa University, with the
help of the Fayette Chamber of Com
merce, has been experimenting, with
very favorable results, with a sum
mer theatre project. Response to the
UIU Summer Theatre has been en
couraging and there is talk of an out
door amphitheatre for their perform
ances. Proponents have in mind the
success of the South Dakota “Passion
Play” and the Kentucky “ Stephen Fos
ter Story.”
The area for the 600 campsites has

W elcom e to “ Eleven”
from the “O n e ” for action

Bankers recognize these numbers instantly as the symbol of The
Bank of California, San Francisco.
This unique distinction dates from March 11, 1876, when the San
Francisco Clearing House was organized as number 11 in the nation,
and the 15 charter member banks awarded Number 1 to The Bank
of California in recognition of The Bank’s pre-eminent position in
the financial community.
Today only one other bank of the original 15 retains the number
awarded it on this occasion, and its name and identity have been
changed. The Bank of California retains the name it started with in
1864 and is identified, as it has always been, as the Number 1 bank
in San Francisco.
From this distinctive position, we extend a cordial welcome to the
nation’s bankers and our other friends on the occasion of the Amer
ican Bankers’ Association convention in San Francisco.

Come to the bank for action

THE BANK OF
C A LIFO R N IA
CALIFORNIA • OREGON • WASHINGTON

THE BANK OF CALIFO RNIA, NATIONAL ASSOCIATION • THE W EST’S ONLY TRI-STA TE BANK • MEMBER F.D .I.C.

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Federal Reserve Bank of St. Louis

N o rth w e ste rn Banker, O c to b e r , 1966

C E N T E N N IA L

YEAR

. . .

(Continued from page 64)
modern new quarters for the bank between 17th and 18th
Streets, one-half block wide between Farnam and Doug
las. From this imposing bank structure an imposing
tower will rise 29 stories above ground level to house
Woodmen of the World headquarters. Excess space will
be leased as available to tenants.
As The Omaha National Bank heads into the final quar
ter of its Centennial Year, it finds traditional ties with
numerous Omaha institutions whose history has been
been determined and the Fayette Jaycees have made the construction of a
shelter their priority project. A shel-

drop us

linked with its own. The Union Pacific Railroad has
continued to prosper as one of the nation’s leading rail
roads. One of its top executives has occupied a place on
the ONB board of directors for many years.
The stability of Omaha’s people and their business com
munity is reflected strongly in the fact that ONB is the
third of Omaha’s major banks to observe the Centennial
of its founding. This stability, the continually expanding
horizons of business development in the area, and Oma
ha’s growing prominence as a key center for commerce,
distribution and agriculture assures The Omaha National
of a challenging and interesting century of growth ahead.
—End.

ter is required for each 50 campsites.
The winter sports area is the last
of the five proposed interlocking proj
ects—lake, golf course, summer stock
theater, camping area and ski run—
and thus far has received the least
attention. Gene Hervey points to a
challenging, sloping area near the
proposed lake and sees, with a mini
mum of development expense, a ski
run.
Should the project become a reality,
several lodge chains are interested in
constructing facilities near the lake,
the banker reports. Should the proj
ect become a reality, a great many
entrepreneurs from various fields of
endeavor will no doubt wish to have
a part in developing the area into a
vacationland.
Gene Hervey continues to “talk up”
the Fayette Lake and is more con
vinced than ever that it is a worth-

while project for everyone concerned
everywhere in Iowa. “ It’s a logical
project,” he says. “ If I believed there
were better reasons for lake projects
elsewhere in the state, I’d back them.
I know of none.”
Certainly northeast Iowa, with its
wild beauty, has been devoid of mod
ern tourist attractions in the past.
Scenery alone does not draw tourists
to the area—except in the fall when
drivers by the thousands line the
highways to view the flaming reds
and golds of the tree-covered hillsides
throughout that corner of the state.
Dubbed by Art Hough, writer-pho
tographer for the Cedar Rapids Ga
zette, as the “Volga Boatman,” banker
Gene Hervey continues to have un
daunted faith in the ultimate success
of his “castle in the air.”
“ I believe,” he quietly affirms, “the
project will go.”—End.

a line
You’d be amazed how much
our salesmen cost us. So, we
keep them busy, selling the
finest time and temperature
displays in America. Nothingmatches our Double TT’s for
beauty, accuracy, dependabil
ity, variety and range of cost.
For value: Double TT’s are
tops. Over 2,000 are serving
financial institutions—success
fully. One of our representa
tives could tell you much more.
Write us for a visit, or call
collect.

AM ER ICAN SIGN
an d IN D IC A T O R
C O R P O R A T I O N
NATIONAL SALES OFFICE: 173 W. Madison Street, Chicago,
Illinois 60602
Telephone Area Code 312 RA 6-6045

N o rth
e ste rn Banker, O c t o b e r , 1966
Digitized
forwFRASER
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Federal Reserve Bank of St. Louis

F ir s t F e e d e r C u ttle Moutures

AN IMPORTANT MILESTONE was achieved by the Feeder Cattle Futures
Market on The Kansas City Board of Trade last month when first deliveries were
made on August contracts. The Feeder Cattle Futures Market, first of its kind
in the world, was officially opened last June 20, offering contracts for August,
October, December and next February. Eight contracts were delivered on Septem
ber 6 for a total of 271 head, which graded far above average. Investment men,
cattle producers and buyers, and market spokesmen were optimistic about the
future of futures. In photo above, USDA officials are shown grading 35 head—
33 of them “ choice” and 2 “ good.”

We deliver
to bankers.

Since the gold rush days,
Wells Fargo has been the banker’s bank
in the west. And today,
with more than 200 branches
throughout northern
California, and assets of more
than 4 billion dollars,
Wells Fargo is one of the
largest banks in the country.
Next time you’re seeking
up-to-date information on banking
and business conditions in
the west, why not discuss it with
the oldest bank in the west.

-O-WELLS FARGO BANK.

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Federal Reserve Bank of St. Louis

FORMERLY WELLS FARGO BANK AMERICAN TRUST COMPANY/MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION/HEADQUARTERS: 464 CALIFORNIA ST.,SAN FRANCISCO 94120

N o rthw e ste rn Banker, O c to b e r , 1966

This is Bob Ziemer’s chair
(he’s rarely in it)
tBob helps provide
banking services to
com m u n ities in
Wisconsin, Upper
M ichigan, Iowa
and S o u t h e a s t
Minnesota.
Next time you
need any kind of
Full Service Correspondent Banking, from
credit information to cash shipment, get in
touch with Bob.

“See you at the Iowa Bankers Association 80th Annual Convention,
Hotel Fort Des Moines, October 16-20.”
N o rth w e ste rn Banker, O c t o b e r , 1966

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Federal Reserve Bank of St. Louis

Bob Ziemer is traveling much of the time.
We think there’s no substitute for person-toperson contact. But he can’t be everywhere
at once. So he’s backed up by Paul Koch and
such other specialists as Keith Barnett, Jerry
Tovsen, Harold Peterson, Bob Dahl and
Joyce Kringle in our office. Please call a n y of
them, a n y tim e you need Full Service Banking.

Northwestern
National
Bank M a y w e h elp y o u to d a y ?
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

He became associated with the First
National Bank of Barnesville in 1918.
He was cashier until 1923 and has
been president since that time.

i n n e s o t a

N EW S
K. J. HUBBELL
K. A . W A LES

President
S e c re ta ry

Promotions at Duluth

St. Paul
Minneapolis

tional Bank of Bemidji, has been
The First National Bank of Marshall elected president of the Chamber of
celebrated its 75th anniversary of con Commerce. Joe Wells, assistant cash
tinuous banking service to the com ier of the First National Bank, is new
munity last month with a gala “Gay first vice president.
90’s” party for customers and visitors.
All employees of the bank were 6 0 Years in Banking
L. L. Olson, Sr., president of the
dressed in authentic costumes of the
First National Bank of Barnesville
90’s during the two-day celebration.
F.
J. Luedtke, assistant vice presi and the Kent State Bank, was the
dent, reports that customers were also guest of honor recently at a dinner
encouraged to attend in costume and in recognition of his 60 years of bank
that prizes were awarded to those who ing service. An open house was also
did. Approximately 5,000 people vis held at the Barnesville bank.
Mr. Olson began his banking career
ited the bank during the celebration.
as cashier at the Kent State Bank in
1906. In 1916 he was named president,
Joins Blue Earth Bank
and
still holds that position today.
Dean Willford has joined the First

Celebrates 75th Year

National Bank of Blue Earth, accord
ing to C. F. Stilgebouer, president. He
will serve as an
assistant cashier
and w ill su p e r
vise all operations
and audit in the
bank.
Mr. W i l l f o r d
c o m e s to Blue
Earth from Willmar, Minn., where
he served as as
si stant c ash ie r
D. W IL L F O R D
w i t h the F i rst
National Bank for the past eight
years. Prior to his employment in
Willmar, he has served with several
other banks in southern Minnesota.

T r e a s u r y A if*a r d

Named Chamber Officers
Carl Olson, cashier, Northern Na

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Federal Reserve Bank of St. Louis

R. P. H A T T E N

T. J. BURGESS

ager of the savings department in
1958. In 1963, he was promoted to
manager of that department. He was
transferred in 1965 to the bank’s mort
gage loan department.
Mr. Burgess, a native of England,
came to Duluth as an exchange stu
dent while he was in high school. He
began working at the bank at this
time. Following graduation from col
lege in 1962, he joined the bank full
time and is currently in the electronic
data processing department.

Grand Marais 50th Anniversary
The Grand Marais State Bank last
month celebrated its 50th year with
an open house in the bank and on the
lawn surrounding the bank. Officers
of the bank are A. M. Anderson, chair
man; Richard I. Anderson, president,
and Carrie E. Anderson, vice presi
dent.

Starts Electronic Bookkeeping

New Building; at Northfield
The new banking home of the Northfield National Bank was officially
opened for business last month, ac
cording to Walter Gildemeister, presi
dent. The bank celebrated the event
with a public open house.
The new building, begun almost
two years ago, combines modern ex
terior design with the warmth of taste
fully decorated and furnished interior.
Walnut furnishings, carpeting in the
officer area, insurance area and con
ference rooms, plus colorful drapes all
combine to provide a pleasing atmos
phere.

Two new assistant cashiers were
elected recently by directors of the
First American National Bank of Du
luth, according to Emmons W. Collins,
president. They are Robert P. Hatten
and Timothy J. Burgess.
Mr. Hatten joined First American
in 1957 and was named assistant man-

T H R E E U. S. Treasury M inutem en A w ards
w ere presented to loca l men b y M rs. U. S.
Savings Bonds, Mrs. Jam es B erry o f Lusk,
W y om in g, at a luncheon held in her honor
at the F irst N a tion a l B ank o f Saint Paul.
S. E. R ogers, a.v.p., F irst N ation al B ank
o f St. Paul, this y ea r’ s p u b licity director
fo r the R am sey County Savings Bonds
C om m ittee, is show n a ccep tin g con gratu la
tion s and his M inutem an A w a rd from Mrs.
B erry. The others receiv in g M inutem en
A w ards at the luncheon w ere Clarence
Fram e, sr.v.p., F irst N a tion a l B ank o f St.
Paul, volu nteer bank advisor o f the R am
sey County Savings Bonds C om m ittee, and
W ilb u r B en nett, d irector o f c iv ic affairs
fo r M in nesota M in in g & M a n u fa ctu rin g
Com pany, w ho is R am sey County industrial
pa yroll savings chairman.

Keith Winge, p re s i d e n t of the
Northwestern State Bank of Sauk
Rapids, has announced that bookkeep
ing operations are now being done by
electronic computer system. Accounts
are processed during the night at a
computer center in Minneapolis.

Rice Notes 5 0 Years
The First State Bank of Rice held
open house last month commemorat
ing the 50th anniversary of the bank.
The bank was chartered in 1916 at
Buckman as the Buckman State Bank
and was located there for 15 years.
In 1931, it was moved to Rice and
adopted its present name.
Mrs. Anna M. Terhaar is president
of the bank.
N o rthw e ste rn Banker, O c to b e r , 1966

IRECTORS of the Marquette Na
tional Bank recently announced
the election of two new officers. Doug
las Peterson has been elected commer
cial loan officer and Phil Manthey has
been named business development
officer.
Mr. Peterson joined the bank in
April of this year serving in the com
mercial loan department. His bank-

were enrolled when classes began in
mid-September at the American In
stitute of Banking, Minneapolis chap
ter headquarters. A new course of
fered for the first time, “Fundamen
tals of Bank Data Processing,” is being
taught by Roland Sullivan, vice presi
dent in the operations department of
the First National Bank of Minneap
olis. The curriculum also includes
such subjects as accounting, bank
management, economics, money and
banking, and principles of bank oper
ations.
* * *
Hermon J. Arnott, president of the

D. PE TE R SO N

P. M A N T H E Y

ing career began in 1953 when he
joined Northwest Bancorporation as
an auditor. In 1955 he became a na
tional bank examiner. Since 1963 he
has been with University National
Bank as comptroller and later as vice
president.
Mr. Manthey’s banking background
began in 1930. After 15 years, how
ever, he left banking and joined Gen
eral Electric Credit Corporation in
Minneapolis. Immediately prior to
joining the bank, he served as a man
ufacturer’s representative. In 1956
Mr. Manthey was named assistant
manager of the Marquette Insurance
Agency and joined the business devel
opment department in May, 1966.
* * *
The Women’s Committee of the St.
Paul Chapter American Institute of
Banking opened their season last
month with a dinner and style show.
Miss Marion Klosterman, American
National Bank and Trust Company
and this year’s women’s chairman, re
ports that “models” for the style show
were men AIB’ers from the city’s
banks.
* * *
Nearly

480

Minneapolis

bankers

N o rth w e ste rn Banker, O c t o b e r , 1966

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Federal Reserve Bank of St. Louis

Farmers & Mechanics Savings Bank,
has announced the introduction of a
new type of savings account at a 5
per cent interest rate and an increase
in rates on investment deposits and
passbook savings.
The annual rate on investment de
posit accounts was increased to 4%
per cent from 4.65 per cent, payable
every six months on multiples of
$1,000, effective October 1, 1966.

F ir s t G u est

The annual interest rate on pass
book and other regular savings ac
counts was increased to a planned 4%
per cent from 414, compounded quar
terly, effective October 1, 1966.
The new premium savings account
carries an annual interest rate of 5
per cent declared for the first interest
period. Interest begins the day of de
posit with an initial minimum opening
balance of $1,000 or more, is credited
each December 1 and June 1, and is
compounded semi-annually.
A feature of the premium savings
account is that customers can deposit
or withdraw as they choose — any
amount, any time. As long as the bal
ance at the end of an interest period
is at least $1,000, it earns the 5 per
cent annual rate. Should the balance
be less than $1,000 at the end of an
interest period, it earns F & M’s pre
vailing rate on regular passbook sav
ings.

Northfield Open House
Open house was held Friday and
Saturday, August 26 and 27, marking
the official opening of the new home
of Northfield National Bank. Opening
of the building, located in approxi
mately the same place as the old struc
ture, marked the end of a two-year
construction project. The bank served
its customers from temporary quar
ters while the old bank building was
razed and the new, one-story concrete
and glass building was constructed.

Increase Capital Stock

THE D ISTIN C TIO N o f b ein g the first out
o f tow n guest to register at the new St.
Paul H ilton H otel in St. Paul, M inn., w ent
to Nevin Bowser (ce n te r), v.p., F irst N a
tional B ank o f Chicago. Mr. B ow ser, w ho
freq u en tly v isits the T w in City A rea fo r
F irst o f C h icago’ s correspondent bank
division w elcom es John Raymond, a.v.p.,
le ft, and John Mullen, right, v.p., both o f
The F irst N ational Bank o f Saint Paul to
his third floor room in Saint P a u l’s newest
add ition to the Capital Centre.

The State Banking Division of the
Department of Commerce has reported
the following changes effected in capi
tal structure:
Comfrey — Peoples State Bank of
Comfrey has increased the amount of
its capital stock from $60,000 to $120,000 by stock dividend.
International Falls — The Interna
tional State Bank has increased the
amount of its capital stock account
from $100,000 to $200,000 by sale of
new stock.

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Federal Reserve Bank of St. Louis

N o rthw e ste rn Banker, O c t o b e r , 1966

Minnesota News

S u pport Êfolliti h Hrititp* U iflilinif
T HE First American National Bank
of Duluth has thrown its support
behind a civic project that has been
brewing for more than half a century
but now is in full gear—the floodlight
ing of Duluth’s famous Aerial Lift
Bridge.
The bridge, the only structure of its
kind in the United States and one of

First American has a teller’s station,
framed with a model of the bridge,
which is the only walk-in location for
making contributions.
Opened in March of 1905, the Aerial
Bridge—except for navigational lights
-—is not visible at night.
Before remodeling in 1930, passen
gers and vehicles were carried across

Oscar Dahl
Oscar Dahl, 90, former president of
the Pine River State Bank, died last
month. Mr. Dahl retired from the
bank in 1945.

Pipestone Ag Representative
James P. Lage has been named ag
ricultural representative at the First
National Bank of Pipestone, succeed
ing Marvin Thomsen who has re
signed to accept the directorship of
the new Pipestone Vocational School.
Mr. Lage has been serving as teller
and agricultural assistant at the bank
since his discharge from the Army in
1963.

Faribault Bank Opening
Security National Bank of Faribault
recently held a grand opening mark
ing completion, after a two and onehalf year construction project, of the
bank’s new building. The structure,
featuring many customer facilities in
doors, also includes a drive-in banking
window, a walk-up window and an
ample supply of customer off-street
parking space.

A CONTRIBUTION to the fu n d fo r lig h tin g the fam ous D uluth A eria l L if t B rid ge is
made at F irst A m erican N ation al B an k b y Miss Barbara Allan (ce n te r). A t le ft is
Miss Sharon Raymond, teller, and at righ t is Claude A, Lutzka, a.v.p. o f the bank and
treasurer o f the b ridge ligh tin g fund.

three in the world, has been the trade
mark of the city since it was built in
1905. It spans the Duluth Ship Canal
which separates downtown Duluth and
the recreational and residential strip
of land known as Park Point between
Lake Superior and the Duluth-Su
perior Harbor.
Claude A. Lutzka, First American
assistant vice president, serves as
treasurer of the civic group raising the
$21,000 for the bridge lighting project.

A
r Qi

s p e c i a l i z e in

ta x e x e m p t m u n ic ip a l b o n d s

A L L I S O N - W I L L I A M S

C O M P A N Y

N O R T H W E S T E R N B A N K B U IL D IN G

2, M IN N E S O T A

Phone: 333-3475
N o rth w e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

B A N K E R S

S in c e 7979

M IN N E A P O L IS

the Duluth Ship Canal on a platform
suspended from the overhead truss by
cables. The remodeling replaced the
platform with a 386-foot span, weigh
ing 875 tons, that travels like an ele
vator from road level to a height of
more than 120 feet to allow ships
through the canal.
The span is raised about 25 times
per day for vessels ranging from pleas
ure craft to large domestic and foreign
ships.

IN V E S T M E N T

Hi I I Hhtbv

D ISP L A Y — Andrew McNally, le ft, p resi
dent and chairm an o f the board, R and M c
N a lly & Com pany, Chicago, was on hand
last m onth to help F irst N ational B ank o f
M inneapolis launch its second annual
“ Salute to S ch ools” savings prom otion pro
gram . H ere, he poin ts out features on the
R and M cN a lly G eo-P hysical R e lie f globe
to F irst N a tion a l V ice Presidents Curtiss
C. Coleman, center, and Robert L. Stuebing. The s ix -fo o t rep lica o f the earth ro
tates on a m otorized base in the b a n k ’ s
concourse. A lo n g w ith 14 affiliated banks
p a rticip a tin g in the five-w eek prom otion,
F irst o f M in neapolis is currently offerin g
1967 edition o f the R and M cN a lly A tlas
as a savings in cen tive.

This year we’re
spending
$ ,
1

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to advertise your

bank.
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T he F oundation for C om
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customers in L ife, L o o k , S aturday E v e n in g Post, T im e and
N etv siv eek .

It’s easy to tie in. First, get on the bandwagon and
join the 6,000 banks which are already members o f the
Foundation.
Then use the advertising and promotion package now
available from the First Financial Marketing Group.
The whole story is detailed in the new Advertising Plans
Book. Send for it today. It will show you how to be the
local focal point for the Foundation’s national Full
Service advertising campaign.

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Federal Reserve Bank of St. Louis

First Financial Marketing Group
Brookline, Mass. 02146

GROUP
Gentlemen:
Sure I want to make something o f the new $1,800,000 adver
tising campaign by the Foundation for Commercial Banks.
___ Please have a First Group representative call on me.
___ Please send me a First Group Advertising Plans Book.
-Title-

NameBank—
Address.

\*H £

Richard B. Beal, Executive Director
N Foundation for Commercial Banks
Philadelphia National Bank Building
y Philadelphia, Pennsylvania 19107

Dear Mr. Beal:
I’m interested in becoming a member o f the Foundation.
__ _ Please send complete information.
__ _ Enroll me as a member and bill me later.
___ Enroll me as a member. Here is my check for $ -------based on rate o f $10 per million o f deposits.
N o rthw e ste rn Banker, O c to b e r , 1966

Minnesota News

D is tr ic t

M e e t in g M in n e s o ta S t gi

INNESOTA bankers last month
moved through another success
ful series of district meetings. Attend
ance was very good in all districts and
those who came heard fine programs
headlined by several key officials of

the American Bankers Association.
Splitting up the district meetings
for the ABA were Charls E. Walker,
executive vice president, who ap
peared on the program at Rochester
and Mankato; Charles McNeil, direc
tor of the ABA’s Washington office, at
Montevideo and Hopkins; and Dale L.
Reistad, director of automation, who
picked up the tour at Little Falls, Bemidji and Hibbing.

“ W e n eed m ore ex p er ien c e in b a n k in g
than e v er b e jo r e . . . bu t w e have less
available !”—Arthur Erpelding
“ O th er financial in stitution s w or\ ou t
th eir d isa greem en ts in private . . —Joe

Ringland, Jr.
“ T h e M B A is an organ ization w hich w e
ju stifa b ly ta\e p rid e in . .
—Paul

Gandrud
“ T h e h igh est in terest rates and th e tigh test
m o n ey in 40 years h a v en ’t c o o led o f th e
e c o n o m y .” — Charls Walker
“ A B A rep resen ts all ban\s. N o t every
ban\ m ay a p p rov e o f ou r actions, bu t ou r
cou rse is set on a con sen su s o f w h at is
best fo r b a n k in g .”—Charles McNeil

No Officers Elected

This year there was no election of
district officers and directors. Proce
dure has always been for officers to
be elected at the district meetings, to
officially take office at the following
Minnesota Bankers Convention.
Acting on a suggestion by the dis
trict organizations and approved by
the BMA council of administration,
current district officers will serve
until the 1967 district meetings next
fall. New officers will be elected and
installed at that time.
Give Endorsement

However, endorsements for nomina
tion to MBA offices at the 1967 state

M .

a i n

“ T h e term ‘ fu ll service ban\er m eans
so m eth in g to M in n esota p eo p le, than\s
to area-w id e ad vertisin g.” —Jim Sullivan

convention were accepted. Endorsed
for MBA president was Paul Gandrud,
executive vice president of the Swift
County Bank in Benson; for vice presi
dent was J. J. Choromanski, president,
Crystal State Bank; and for treasurer
was A. Dan Fiala, president of the
Ogilvie State Bank.
* * *
Making the tour of Minnesota dis
trict meetings for the first time was
Joe Ringland, Jr., recently appointed
Commissioner of Banks for the State
of Minnesota. His visits with Minne-

8 c

., I

sota bankers were well received as
he noted that it is somewhat custom
ary for state banking authorities to
“view with alarm” the current trends
toward federal banking authority’s en
croachment on banking at the state
level. He went on to say that this
was a very real threat today to the
dual banking system in Minnesota.
He cited a recent opinion expressed
by James Saxon, Comptroller of the
Currency, that savings and loan asso
ciations are, by broad definition, banks,
and should be operated under the
same ground rules.

Thus, All*. Saxon has stated, in states
where savings and loans are per
mitted to branch, national banks
should also have this right.

Mr. Ringland pointed out that if
this opinion is upheld, national banks
will be permitted to branch in any
state where rtate-chartered savings
and loan associations are permitted to
branch. The implications for Minne
sota, where this situation is present,
were not difficult for Mr. Ringland to
point out.
Mr. Ringland also discussed one
other interesting point about banking
from a commissioner’s standpoint. He
noted that other financial trade asso
ciations with which he works present
a united front on matters dealing with
legislation. Differences are worked
out prior to coming before state au
thorities or legislators.
Not so with bankers, he said. Dif
ferences of opinion often are settled
in public. “This is not a very pro
fessional way to approach this prob
lem,” he observed.

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As previously mentioned, ABA du
ties were divided among three spokes
men. Though Mr. Walker was sched
uled for the complete tour of meet
ings at one time, conflicts began to
develop in his schedule. After much
effort on the part of ABA officials,
Kenny Wales, MBA secretary, and
Truman Jeffers, assistant secretary,
the final schedule was set.
Minnesota bankers were compli
mented by the ABA men on the ag
gressiveness of their association and
on their support of MBA. It was
noted the Minnesota Bankers Associa
tion continues to be among the lead
ers of the nation’s state banking asso
ciations.
Mr. Walker, at a press conference
in Minneapolis and at Districts 1 and
2, expressed great concern over the

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Call 332-0511 401 Second Ave. So. • Minneapolis, Minn. 55440
M em b er Fe d eral D ep osit In su ra n c e Corpo ration

N o rthw e ste rn Banker, O c to b e r , 1966

Minnesota News

current “overheated” economy. He
urged adoption by the federal govern
ment of a better plan to pay for the
Viet Nam war. A cutback in spend
ing or a tax increase seem necessary,
in Mr. Walker’s opinion.

On the question of monetay policy,
Mr. Walker stated that this approach
was not the complete answer to the
problem. “ The highest interest rates
and the tightest money in 40 years
haven’t been able to cool off the econ
omy,” he noted.
Mr. McNeil, in his address before
District 7 bankers at Montevideo and
Districts 3, 4 and 5 bankers at Hop
kins, emphasized ABA efforts to serve
all banks, regardless of size or loca
tion. He reviewed the extensive ef
forts of the ABA to arrive at a defi
nite position on a question only after
exploring all related divisions and
committees of ABA. These groups,
which are carefully organized to rep
resent a cross section of banks, pre
sent their views. A consensus of these
views then form the basis for an offi
cial ABA position.
* * *
In a discussion titled “Why Bank
ing Education Is Important to the
Boss,” Arthur Er pe ldi ng , assistant
treasurer, Farmers and Mechanics
Savings Bank of Minneapolis, pointed
out that banking is changing very
rapidly.

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Federal Reserve Bank of St. Louis

He noted that “We need more expe
rience than ever before . . . but we
have less available than just five years
ago.”
A part of the answer to this prob
lem, according to Mr. Erpelding, is in
the area of education. He pointed out
such efforts as the Minnesota School
of Banking and the American Institute
of Banking as excellent means where
by young men in banking can learn,
and become better prepared to fill a
bigger role in their respective banks.
* * =t=
Paul Gandrud, vice president of the
MBA and executive vice president of
the Swift County Bank in Benson,
discussed association efforts in the
areas of legislation, education and pub
lic relations. Forthcoming associa
tion-sponsored m e e t i ng s were also
listed with special emphasis given to
the ABA Agricultural Credit Confer
ence to be held in Minneapolis, Novem
ber 13 to 15.
He urged attendance to this meet
ing by all Minnesota bankers. Asso
ciation officials extended great efforts
in convincing ABA officials that Min
neapolis was an ideal spot for the
meeting, and “it’s up to us to show
them their decision was correct,” he
said.
* * *
Jim Sullivan, representing the Bank
ers Area-Wide Advertising Program,

appeared before all the district meet
ings and presented a complete story
of the program and its benefits to
bankers across the state. He pointed
out that this is a very well planned,
complete program including newspa
per ad mats, billboards, decals and
other materials in addition to the TV
advertising.
He pointed out that as a result of
the area-wide program, the term “full
service banker” carries a real meaning
among Minnesota people.
* * *
The district meetings were all con
cluded with dinner followed by a pro
gram featuring Ray J. Stanish, Cali
fornia, who concluded the day’s activi
ties with a comedy presentation titled
“Atomic Energy — Peasant Style or
Einstein, Relativity, and All That
Jazz.”
Robert J. Hubbel, president of the
Minnesota Bankers Association and
president of the Eastern Heights State
Bank of St. Paul presided at the din
ner-meetings. He also used this op
portunity to discuss MBA activities in
legislation.— End.

Luverne Bank Director
Jerry P. Kozney, vice president and
manager of MID Packing Company,
has been elected a director of the
First National Bank of Luverne.

S o n i li

I la k o l a

N EW S
J. S. HOLDHUSEN
R. W . TER W ILLÎG ER

President
Secretary

Ipswich
Huron

Krnnnm ir S em in ar S ri—
P LANS have been announced for
the South Dakota Bankers Asso
ciation sponsored Economic Seminar
for Young Adults, to be held in Huron
on October 12 and 13.
According to J. S. Holdhusen, presi
dent of the Ipswich State Bank and
SDBA president, the Seminar is spon
sored by the association to promote
a better understanding among young
people on the varied facets of banking
and finance in every-day life.
Such topics as “ Importance of Your
Credit Rating; Planning Your Insur
ance; and Wills, Trust and Estates”

R. F. P E TSC H O W

!2.

will be presented by such people as
Dr. Jack Early, president of Dakota
Wesleyan University at Mitchell; Joe
T. Gilliland, executive secretary of the
Oklahoma Bankers Association; C. W.
Reaves, John Hancock Mutual Life
agent in Sioux Falls, and John Soren
son, Merrill, Lynch, Pierce, Fenner &
Smith of Minneapolis.
Robert F. Petschow, SDBA second
vice president and president of the
Corn Exchange Bank, Elkton, will pre
side at one of the sessions. Banquet
speaker will be Paul Giel, sports direc
tor of station WCCO, Minneapolis.

PAU L GIEL

J. T. G IL LIL A N D

J. T. JE L B E R T

ECON OM ICS SEMINAR DISCUSSION LEADERS
W m . V. F isch er
J. D. (D o u g ) D ulany
John Y . K rastin s
W m . H. M ateer
Jam es O. H einecke
John S. Lasher
H ilm er L. Opp
Curtis W . Kuelni
T. E. B risbine
M. O. L in dell
A rthu r J. Owens, Jr.
M rs. Gardner B. Gross
M artin D ietrich
E ldon W . Swenson
Em m ett EL Johnson
E ob ert F. P etsch ow
D ennis D alziel
E. C. P iep low
M erle M arshall
H ow ard B. Lee
E ob ert E. F ish b a ck
N. H. K ortuem
Charles Seam an

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Federal Reserve Bank of St. Louis

A sst, v ice president
A sst, v ice president
A sst, v ice president
A sst, v ice president
A sst, v ice president
V ice president
A ssistant cashier
V ice president
E xec, v ice president
V ice president
Cashier
D irector
V ice president
Cashier
Cashier
P resid ent
A ssistant cashier
V ice president
V ice president
Cashier
V ice president
E xec, v ice president
A ssistant cashier

P ierre N ational
A berdeen N ational
N orthw estern N atl.
Citizens Bank
N atl. Bank o f S. Dak.
N orthw estern N atl.
A b erdeen N ation al
F irst N ational
Sanborn County
B ank o f V eblen
The O nida Bank
B ow dle State Bank
F irst P otter County
F irst Citizens N atl.
F irst State Bank
Corn E xch ange Bank
N orthw estern N atl.
1st N atl, o f A berdeen
Farm ers & M erchants
F irst N ational Bank
F irst N ation al Bank
Citizens Bank
F irst State Bank

Pierre
A b erdeen
Siou x Falls
M ob ridge
Huron
H uron
A b erdeen
Siou x Falls
W oon sock et
V eblen
Onida
B ow dle
G ettysburg
W a tertow n
E oscoe
E lk ton
M adison
A b erdeen
Huron
V olga
B rookin gs
G a yville
W arner

South Dakota bankers on the formal
program include James D. Jelbert, vice
president of the First National Bank
of the Black Hills, and Arthur R. Ol
son, assistant vice president of the
Northwestern National Bank in Sioux
Falls. Herman Lerdal, South Dakota
B a n k i n g Superintendent, will also
speak to the group.
A key portion of the Seminar will
be contained in the small discussion
groups which will probe various top
ics in small groups. A list of the
South Dakota bankers who will serve
as discussion leaders is found below.

Joins Brandon Staff
Palmer Karli of Corson has joined
the staff of the United National Bank
in Brandon. His duties will be pri
marily in the insurance department of
the bank, according to Don Cotton,
vice president.

To Study Bank Laws
J.
S. Holdhusen, president of the
South Dakota Bankers Association,
has appointed the following bankers
to serve on a special committee to
study the existing banking statutes:
Boyd Knox, executive vice presi
dent, Commercial Trust and Savings
Bank, Mitchell, chairman.
Howard Peters, president, Ameri
can State Bank, Wessington Springs.
Russell Halvorson, vice president,
American National Bank & Trust
Company, Rapid City.
Robert H. Frei, president, Commer
cial State Bank, Wagner.
J. Fred Joyce, president, Aberdeen
National Bank.

Announces Name Change
R. H. Walrath, president of the First
Citizens National Bank in Watertown,
has a n n o u n c e d that effective last
month, the title of the bank was
changed to First National Bank of
Watertown.
Mr. Walrath, in tracing the back
ground of the bank, noted that the
National Charter was received in
March, 1883, under the name of First
National Bank of Watertown. Through
a merger in 1933, the name was
changed to First Citizens National
Bank.
The change back to the original
name came on the occasion of the
bank’s 83rd anniversary.

No rthw e ste rn Banker, O c t o b e r , 1966

South Dakota News

R e c o r d N u m b er o f H on kers
Turn Out fo r G roup J ieetin i/s
F ROM west to east, the “Flying Cir
cus” moved across South Dakota
last month as the annual series of five
Group Meetings was held. It started
in Rapid City, then to Mobridge, Web
ster, Chamberlain and Sioux Falls.
Leading off the program at the
meetings was J. S. Holdhusen, SDBA
Group 1

Group 2

Group 3

president and president of the Ips
wich State Bank. He expressed ap
preciation of the Association for the
fine support extended by South Da
kota Bankers, and he urged bankers
to call on the Association for any pos
sible service they might be able to
extend.

Pres.— R. M. Clikeman, vice presi
dent, Parker State Bank.
Vice Pres.— L. C. Olson, vice presi
dent, Bank of Union Cbunty,
K k Point.
Secy.-Treas.— John Krastons, assist
ant vice president, Northwestern
National Bank, Sioux Falls.
1967 Group Meeting— Sioux Falls.

Group 4

Pres.— M. S. Hamre, cashier, Citi
zens State Bank, Clark.
Vice Pres.— Ivor Ochsner, execu
tive vice president, First Na
tional Bank, Frederick.
Secy.-Treas.— Robert S. Law, presi
dent, Deuel County National
Bank, Clear Lake.
1967 Group Meeting— Watertown.

Pres.— Ted Schanzenbach, cashier,
First National Bank, Selby.
Vice Pres.— D. E. Card, vice presi
dent, Dewey County Bank, Tim
ber Lake.
Secy.-Treas.— Russell Ness, assistant
vice president, Mobridge Branch,
First National Bank of Aber
deen.
1967 Group Meeting— Mobridge.

Group 5

Pres.— John Baggaley, vice presi
dent, Deadwood Office, First
National Bank of the Black
Hills, Rapid City.
Vice Pres.— Hugh Caton, assistant
vice president, Rushmore State
Bank, Rapid City.
Secy.-Treas.— LeRoy Hofer, assist
ant vice president, Hot Springs
Office, American National Bank
& Trust Company, Rapid City.
1967 Group Meeting— Rapid City.

Pres.— Henry B. Schelle, cashier,
Tri County State Bank, Cham
berlain.
Vice Pres.— John Troth, vice presi
dent, Mitchell National Bank.
Secy.-Treas. — Lewis
Vanderboom,

vice president, National Bank of
South Dakota Branch, Platte.
1967 Group Meeting— Huron.

K E Y P AR TIC IPAN TS in the South D a kota G roop M eetings.
F rom L E F T : J. S. Holdhusen, SD B A pres, and pres., Ipsw ich
State B k .; Herman Lerdal, S.D. supt o f banks, H u ron ; James
E. Sullivan, M inneapolis, reprenesting the Bankers A reaw ide

Mr. Holdhusen also discussed brief
ly the new Agricultural Credit School
which is being planned as a coopera
tive effort between the State Bankers
Associations of South Dakota, Minne
sota and North Dakota. The first ses
sion of the school is scheduled for the
week of July 23, 1967. It will be a
week in length, and those attending
the first year will make up the “sec
ond-year” class when the school meets
in 1968. Site will be the University
of Minnesota.
* >t=
*

Herman Lerdal, South Dakota Su
perintendent of Banks, discussed vari
ous trends and projects in the depart
ment. Of most importance was his re
port that a study of South Dakota
banking laws has begun with the hope
of up-dating these laws. A five-man
committee has been appointed to com
plete this study. Both state and na
tional banks are represented because
the “climate under which all banks
operate in South Dakota is of vital im
portance,” he said.
Mr. Lerdal told bankers their opin
ions on banking laws would be re
quested, however he urged them to

A d v . P rogra m ; L. E. Morrison, v.p. and tr. officer, F irst Natl,
o f the B la ck H ills, R apid C ity ; and Roy Terwilliger, exec, sec.treas., S D B A , Huron.

L E F T : Stan Evans, first v.p., L iv e S tock N atl., Siou x C ity ;
C, D. Gregg, pres., W estern State, Sioux F a lls; and William S.
Shannon, v.p., A m erican State, Y an kton . R IG H T : Bill Heimer-

N o rth
e ste rn Banker, O c to b e r , Î966
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man, sr. v.p., N orthw estern N atl., Siou x Falls, and William
Daulton, cash., M cC ook C ounty N atl., Salem.

South Dakota News

PAST AN D PRESENT from The N ation al B ank o f South
D akota, Siou x F alls are shown at L E F T : Tom Harkison, S iou x
Falls, w ho retired last yea r as chm., and Martin J. Colton, pres.

R IG H T : W . L. Henden, v.p., Farm ers State, Carthage, and
Gene Hagen, a.c., S ecu rity N atl., Sioux City.

L E F T : C. E. Aronson, a.v.p., T oy N atl., Siou x C ity, and E. R. Arneson, v.p., B ank o f U nion County, E lk P oin t.
Dexter, cash., F a irv iew State B k., and Dick Taylor, v.p., F irst N ational Bank, Siou x City.

inform the department of any thoughts
they might have at any time.
In reviewing the June 30 abstract
of condition of state banks, Mr. Lerdahl pointed out that South Dakota
banks have followed the general trend
of increasing deposits of time money
and continually decreasing demand
deposits.
He also commended the bankers for
building up their capital accounts, but
noted that exceptions were present In
the state and urged those bankers who
have not done this to consider the
need to build up the capital structures
of their banks.
Direct verification of deposits and
loans is still a thing of the future, Mr.
Lerdal reported. However, the depart
ment has already begun verifying
overlines and participations by corres
pondent banks. He noted that this in
itself has been most revealing and em
phasized the need for better records in
country banks.
=t=

=(=

James E. Sullivan of Minneapolis
appeared on the program to present

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the story of the Bankers Areawide Ad
vertising Program. This program, cur
rently being utilized in Minnesota,
North Dakota and Wisconsin was re
cently adopted by the South Dakota
Bankers Association.
The program, which started when a
group of bankers banded together to
air commercials over a Mason City,
Iowa, station, has grown to participa
tion from about 500 banks in Minne
sota, 100 in North Dakota and about
100 in Wisconsin.
The program was completely re
viewed for the South Dakota bankers.
Cost was reviewed and the breakdown
of how funds are spent was carefully
explained. Mr. Sullivan also empha
sized the many materials which are
available to bankers who participate
in the program. Of extreme impor
tance, he pointed out, is the fact that
the program is completely adminis
tered by bankers themselves through
an advisory board which okays all
commercials before they are shown.
* * *
Final subject for discussion was the

R IG H T :

Dave

Uniform Commercial Code which will
become effective in South Dakota on
July 1, 1967. Presenting a brief dis
cussion of this new law was L. E. Mor
rison, vice president and trust officer
of the First National Bank of the
Black Hills in Rapid City. Mr. Morri
son is chairman of the SDBA trust
committee.
Mr. Morrison described in general
terms the Code and the 9 basic subti
tles. He elaborated to a greater extent
on subtitle 9 which discussed the vari
ous forms which will be used under
the new Code.
Roy Terwilliger, SDBA secretary,
took this occasion to announce Asso
ciation plans for presenting the Code
in more detail to bankers. The follow
ing meetings are currently planned:
Bank Management Conference in Hur
on on November 2 will be devoted
to the Code; an Institute on the Code
sponsored with the South Dakota Bar
Association will be held November 3
and 4 at Huron; and a series of work
shops will be held next spring in each
of the groups.
Northwestern

Banker,

O c to b e r ,

Î966

Russ Hougen Day
.\ o r l li

l l i i k o l a

N EW S
A. A . MAYER

President

Bismarck

W. J. DANER

Secretary

Bismarck

N orth Italiota tìroap
T HE program for the 1966 Group
Meetings of the North Dakota
Bankers Association have been an
nounced by A. A. Mayer, NDBA presi
dent and president, Dakota National
Bank, Bismarck. The four meetings
are scheduled as follows:
Northeast— Tuesday, October 11,
Town & Country Club, Devils Lake.
Northwest—Wednesday, October 12,
Elks Club, Williston.
Southwest— Thursday, October 13,
Crown Room, First National Bank of
Dickinson.
Southeast — Friday, October 14,
World War Memorial Building, James
town.
Officers in Charge

The group presidents and registra
tion chairmen are (president listed
first):
Northeast — Gordon Larson presi
dent, First State, Park River; J. B.
Collinson, vice president, First Nation
al, Devils Lake.
Northwest—Robert Barstad, cashier,
First State, Harvey; Kenneth Erick
son, vice president, First National,
Williston.
Southwest—Lloyd Kempf, president,
Grant County State, Carson; James
Civilla, First National, Dickinson.
Southeast—R. G. Burges, cashier,
Security National, Edgeley; H. F. Buegel, Jr., president, Jamestown Nation
al, Jamestown.
Program

The program for each of the meet
ings will be:
P.M.
3:00-6:00 Registration.
4:00 Call to Order and Welcome —
Group President.
4:05 Introduction of Program and Re
marks—President Mayer.
4:10 NDBA Group Insurance — Occi
dental Life Insurance Co. repre
sentatives.
4:25 Bankers Areawide TV Advertis
ing Program — James Sullivan,
BAAP representative.
4:40 ABA Pay-By-Check Film and
School Tie-In Instruction.
N o rthw
e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

As announced earlier in the N o r t h
B a n k e r , R. M. Hougen has
retired as president of the American
National Bank of Valley City and K.
B. Cummings, vice president, has been
named as new president.
To honor Mr. Hougen for his 44
years of service at the American Na
tional Bank, residents of the commu
nity set aside a complete day to ex
press their appreciation through an
open house at the bank and a dinner
in the evening. Employees of the
bank presented Mr. Hougen with a
color TV set.
w estern

r r t iiit/ s

5:05 Uniform Commercial Code Prac
tice—George Johnson, president,
First National Bank, Minot.
5:25 1967 State Banking Legislation—
William J. Daner, NDBA secre
tary.
5:45 Election of Group Officers—Group
Presidents.
6:00 Social Hour.
6:45 Dinner.

To Sponsor Livestock Forum
The American State Bank of Willis
ton has announced plans to sponsor
the Third Annual Northwest Live
stock Forum in Williston on Novem
ber 9. Co-sponsor will be the North
Dakota Stockmen’s Association.
According to Lyle C. Sorum, assist
ant vice president of the bank, the
one-day meeting will include a variety
of speakers on topics of current inter
est to ranchers and farmers.

H. Laurel Youtz
H. Laurel Youtz, 51, president of the
Jamestown National Bank from 1959
until his retirement in February of
this year, died last month. He had
been in failing health for the past six
and one-half years.
Mr. Youtz began his banking career
in 1934. Since 1934 he had been asso
ciated with the First Bank Stock Cor
poration serving in several North Da
kota communities.

Drake Appointment
E. H. Haykel, owner of the Drake
Insurance Agency, has been appointed
an assistant cashier of the First Na
tional Bank of Drake.

New Building at Northwood
Construction has begun on the new
Northwood State Bank Building with
completion expected by mid-1967. The
new banking complex will occupy an
area one-half block wide and one-half
block deep. In addition to a modern
one-story full service banking area,
drive-in facilities will all be included.

Binford-Cooperstown Merger
The Security Trust Company of
Cooperstown and the Binford State
Bank of Binford have merged into one
bank. The resulting bank is the
Farmers and Merchants Bank of
Cooperstown.
L. A. Sayer, who served as president
of both the Cooperstown and the Bin
ford banks is president of the merged
bank.

Profit Sharing Seminar
The American State Bank of Willis
ton will sponsor a Profit Sharing Pro
gram seminar in the community room
of the bank. Lyle C. Sorum, assistant
vice president of the bank, reports
that David Boies, assistant vice presi
dent of the First National Bank, Min
neapolis, will give a slide presentation
on the merits of an employee profit
sharing program.

Proposes 5 Per Cent E Bonds
Senator John J. Williams (R-Del)
proposed recently that Congress boost
the interest ceiling on government
savings bonds to 5 per cent.
The current ceiling on Series E
savings bonds is 4% per cent.
Mr. Williams said that penalizes
small investors in government sav
ings bonds at a time when interest
rates are soaring.

New ABA Research Plan
A major research program concen
trating on the impact of computeriza
tion on the banking industry is being
contemplated by the American Bank
ers Association.
Archie K. Davis, A.B.A. president,
described the proposed program as
“the largest single research project
yet to be conducted by the A.B.A., and
the most comprehensive automation
project to be performed by any single
industry group.”

Jack Allen, Mac McClintock and Dick

have your cable car tickets, for First of Tulsa

Wagner will all be on hand to greet you

wants to be sure that every one of you enjoys

at the ABA. They’ ll be asking you if you

a ride on San Francisco’s fabled cable cars.

For free cable car tickets, just “Think
BANKS & BANKERS DEPARTMENT
FIRST NATIONAL BANK AND TRUST CO.
BOX 1
TULSA, OKLAHOMA
Send cable car tickets to:

. . \ First”, clip the coupon at left and
send it to us.
T h in k ...

* J;p \

N A M E ____________________________________________
B A N K ____________________________________________
C I T Y ________________________ S T A T E ______________

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Federal Reserve Bank of St. Louis

THE FIRST NATIONAL BANK
& TRUST COMPANY of TULSA
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

N o rthw e ste rn Banker, O c to b e r , 1966

82
has announced promotions of two
members of the bank’s staff.
Garth G. Thomas, a bank employee
for two years, and Mrs. Bonnie E.
Berger, who has been in banking for
seven years, were given the dual ti
tles of assistant cashier and assistant
vice president.

M o n ta n a

N EW S
A. S. BRUBAKER

President

Terry

R. C . W A LLA C E

Secretary

Helena

W y o m in g N ew s
Bank Examiner Appointed

Purchase Montana Banks

Bank Statements

Sale of the Ravalli County Bank, the
oldest in the county, and the First
State Bank of Stevensville were an
nounced late last month.
Lincoln Shonkwile, Skokie, 111., has
bought controlling interest in the
Hamilton bank from R. W. Baxter,
Douglas McDonald and Donald Scothorn. Mr. Shonkwile also bought
controlling interest in the Stevensville
bank from Mr. Baxter and Mr. Mc
Donald.
Mr. Shonkwiler is president of the
Skokie Trust & Savings Bank. He and
his family will move to Hamilton after
January 1, 1967.

The first statements of condition
received by the N o r t h w e s t e r n B a n k e r
from Montana banks based on the
September 20 bank call show deposits
at approximately the same level as
last year-end. Loans are up slightly at
most of the banks. September 20 figures are:
D ep.

L& D

(000 (o m it t e d )

....$41,299
1st Natl., Billings*..........
....... 17,163
1st Natl., Butte..................
Metals B&T, Butte.......... ........... 43,606
.... 9,756
1st Natl., Glendive.....- .....
....... 13,176
1st Natl., Livingston
Commerce B&T, Helena... ............. 6,312
1st Natl. B&T, Helena..... ............. 39,202
*Merger with Billings tSate National.

$30,725
4,424
28,644
5,392
6,829
3,275
22,726

C o lo r a d o
W y o m in g N e w s

As announced earlier in the N o r t h
B a n k e r , Wade H. McDowell
has been appointed senior bank exam
iner by the Wyoming Banking De
partment. He will
s u c c e e d A. R.
Hafer, w ho has
announced his re
tirement.
Mr. Mc Do we ll
comes to Wyom
ing from Kansas
City where he re
tired July 31 as a
se ni or examiner
w. h . M cD o w e l l for the Federal
Reserve Bank of
Kansas City. He has been connected
with banking for more than 42 years
as an examiner and as an officer in
several banks.
w estern

Industrial Activities Reported
NEIL F. ROBERTS
Denver
President
Colorado Bankers Assn.

^ w

RAy

Rock Springs
President
Wyoming Bankers Association

New Officer Designations
The Colorado National Bank has
announced a number of new officer
designations in what Melvin J. Rob
erts, president, said was a “move to
give clear-cut titles to the bank’s offi
cers.”
New titles have been given 30 of
the bank’s present officers and the
traditional banking titles of assistant
vice president and vice president were
unchanged.
The move toward giving certain offi
cers titles more descriptive of their
functions began a few weeks ago with
the designation of a “trust operation
officer,” an “assistant controller,” and
a “public relations officer.”
The new officer titles include loan
officer, real estate loan officer, install
ment loan officer, correspondent bank
officer, wire transfer officer, operations
officer, accounting officer and data
processing officer.

vanced to officer-in-charge of the cor
respondent banking group, as an
nounced earlier in the N o r t h w e s t e r n
B anker.
He succ e e c l s R a y C.
Harper, who has
left the bank to
accept a managem e n t po si ti o n
with a financial
holding company
in Sioux Falls, S.
D.
Mr. Olin joined
the bank in 1957
K. o . O L I N
and was elected
an assistant trust officer in 1957. In
1963 he was named a trust officer, and
later that year he transferred to the
marketing division to head the mar
keting services area as a vice presi
dent. He then transferred to the cor
respondent banking group in 1964.

Promoted at Denver U. S.

Suburban Bank Promotes

Kent O. Olin, vice president at Den
ver U. S. National Bank, has been ad-

Dave Ferguson, president of the
Boulevard National Bank in Denver,

No rth
estern Banker, O c to b e r, 1966
Digitized
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Efforts of the Industrial Develop
ment Committee of the Wyoming
Bankers Association were recently
featured in Wyoming Progress Re-

•» N ew O fficers

F IV E YOUNG M E N have been prom oted
to assistant cashiers at the First N ational
B ank o f D enver. In addition, it was an
nounced that Donald E. Provost has been
nam ed to the board o f directors. He is
president o f Stearns-R oger Corp. Pictured
above (1. to r.) are the new officers:
Seated— Paul A. Jacobs, personnel, and
James A. Kenyon II, business develop
ment. Standing— Roger D. Knight III,
com m ercial loans; Curtis W . Wells, real
estate, and William G. Wendt, new ac
counts.

-A

No problem

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istoo small to receive
our personal attention

WHETHER YOUR SERVICE REQUIREMENTS ARE SIMPLE OR COMPLEX,
our staff o f specialists stands ready to lend a helping hand.
And these men— Don Ferrel, Kent Olin, George Alff, and Terry Ryan—
are here to see that you get the personal attention o f the right people.
Just call (303) 244-8811.

that's the bank for m y money r

DENVER U.S.
N A T I O N A L
D EN VER

U .S . C E N T E R

B A N K

D e n ve r, C o lo ra d o 8 0 2 1 7

N o rth w e ste rn Banker, O c t o b e r , 1966

Wyoming News

Native Stane il ig h tifftits

r Inaiteli Itnililinif

N A T IV E lichen stone, w alnut paneling, w arm colors and a
glisten in g w hite display fo u n ta in in the lob b y com bine to give
the new buildin g fo r the A m erican N ational Bank o f Pow ell
a m odern and personal, y e t dignified appearance. The m agnifi
cent new structure provides a covered drive-up w in dow and
night depository, a w alk-up w in dow in the fo y e r, and tw o street
entrances, w ith spacious pa rk in g in the rear. M ore than h alf
the basem ent area is d ev oted to the “ P ow ell R oom ,” w hich is
a. com m unity room a vailable fo r use by groups. Officers are
George B. Cooke, pres.; Eugene T. Hayes, v.p. & cash., and Harold R. Hand and Daisy Taylor, a.c.’ s.

ports, a publication of the Wyoming
Natural Resource Board.
The report featured comments by
Milton G. Coffman, former chairman
of the Natural Resource Board and

chairman of the First National Bank
of Casper, and Robert E. Bryans, ex
ecutive vice president of the First
National Bank of Casper, and chair
man of the Association’s Industrial
Development Committee.

actions
speak
louder
adjectives
in
correspondent
banking
Since 1860,
the ACTION BANK
first of all!

The
First National Bank
of Denver

Northwestern
Banker, O c to b e r , 1966
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

17th

an d WELTON

It was noted that a major Wyom
ing tourist attraction had been made
possible through a cooperative loan
by five of the state’s banks.

United Fund Chairman
John France, president of the Raw
lins National Bank, and Carl Emerich,
assistant cashier of the First National
Bank and Trust Company of Chey
enne, have been named to head the
United Fund drives in their respective
counties.

Business Forums Held
The Federal Reserve Bank of Kan
sas City has completed a series of four
meetings in Wyoming briefing bank
ers on current developments in agri
culture, business and finance. The
meetings were held in Casper, Cody.
Rock Springs and Cheyenne.

B a n k 99D ip lo m a s 99

AS PART OF the opening fe stiv itie s fo r
an $180,000 a ddition , U n iversity H ills Bank
in D enver con du cted “ behind-the-scenes”
tours fo r bank custom ers and distributed
College
of
M on eta ry
K now led ge “ d i
plom as” as souvenirs. Here, Emmet Curry,
bank president, fa r righ t, and J. Kern an
Weckbaugh, next to M r. Curry, distribute
“ diplom as” to fo u r civ ic officials— from
le ft, D enver C ity Councilm en Irving Hook
and Paul Hentzell, Colorado State B a n k
in g Com m issioner Harry Bloom, and D en
ver U n iversity Chancellor Wilbur Miller.
U n iversity H ills B ank is one o f fo u r Den
ver area banks affiliated w ith
First
Colorado Bankshares, Inc.

Another graduate o f
the CNB Correspondent
Banking Training Program
By Gene Huit man, Vice President, Correspondent Banking

W e think
Charlie Baer’ s
Gene Hultman, V. P.

ready.

H e’ s had 37 years’ experience in
C N B ’ s Commercial and Trust
Departments. And for the last four
years, he’ s been the Senior VP in
charge o f C N B ’ s prestigious Trust
Department.
N ow we feel he’s completed his
“ on-the-job training” and more
qualified than ever to help you with

Charles Baer, Senior VP

your correspondent banking needs.

Our training program takes a

So are scores o f other tried and true

while. But when we say a man s |

banking specialists at CNB.

ready to help you . . . he’s ready

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Federal Reserve Bank of St. Louis

i CNB a

iihthi

C O L O R A D O N A T IO N A L B A N K
T he “ Bank That Looks Like A Bank.” 17th and Champa. Members F.D.I.C.

N o rthw e ste rn Banker, O c to b e r , 1966

Is "Keeping IJp” keeping you up?
If all the reading and reviewing it takes to keep
up with the current money situation is making
inroads into the time you need for other impor
tant duties, turn the chore over to the skilled
bank p o rtfo lio an a ly sts at U. S. N a tion a l.
Whether you want complete advisory service or
simply an answer to an occasional question
about your bank’s securities, you’ll be helped
by men who understand bank investment prob
lems. Just give U. S. a c a ll... 341-8765, Omaha.

Member,

N o rthw e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

Federal

Deposit In su ra n c e

Corporation

N ebrask a

N E W S
THOM AS 1, ARON

President

HARRIS V. OSTERBERG

Exec, V.P.

Crete
Omaha

2 A if S em inars A r e Scheduled
T WO Agricultural Seminars have
been scheduled for November 2
and 3 by the agricultural committee of
the Nebraska Bankers Association.
The seminars will be held on succes
sive days, at Hotel Pawnee in North
Platte on Wednesday, and at Hotel
Lincoln in Lincoln on Thursday.

M. R. M ORGAN

R. J.

DOLL

H. Keith Newton, committee chair
man, has announced that vocational
agricultural i n s t r u c t o r s from the
state’s high schools and county agents
are to be guests of the banks in each
county. Mr. Newton is executive vice
president, Albion National Bank, Al
bion.
The complete program follows:

dent, First National Bank, Elwood (speaker at North Platte).
10:00 “Outlook for Business and Agri
culture”—Raymond J. Doll, Sen
ior Economist, Federal Reserve
Bank, Kansas City, Mo.
10:45 “Competitive Position of Ameri
can Agriculture” — J. Carroll
Bottum, Assistant Head, Coop
erative Extension Service, Pur
due University, Lafayette, Ind.
11:30 “ The Change in Banking” —
Walter E. Nolte, executive vice
president, First National Bank
& Trust Company, Lincoln.
P.M.
12:15 Luncheon.
1:15 “Trends and Marketing of Live
stock”—Dr. Jim Kendrick, As
sociate Professor, Agricultural
Economics, University of Ne
braska, Lincoln.
2:00 “ Inter-Region Competition for
Agriculture”—Dr. E. C. Young,
Experience, Inc., of Minneapo
lis, Lafayette, Ind.

Platte); David R. Johnson, vice
president, The Omaha National
Bank (Lincoln).
“Operational Loans” — Wayne
M. Thorndyke, vice president,
The United States National
Bank of Omaha.
“Trust Services” — Thomas J.
Waldo, vice president, National
Bank of Commerce T&S, Lin
coln.
“ Intermediate Credit, Machin
ery and Equipment” — M. E.
Aegerter, assistant vice presi
dent, First National Bank of
Omaha.
“ Livestock Loans”—Lester Cur
ran, assistant vice president,
First National Bank & Trust

L. CURRAN

F. J. SIB E RT

Company, Lincoln (speaker at
North Platte, moderator at Lin
coln); Frank J. Sibert, vice pres
ident, South Omaha Stockyards
National Bank (moderator at
North Platte, speaker at Lin
coln).
3:45 “Outlook for Freedom”—Allan
B. Kline, Western Springs, 111.;
former president of American
Farm Bureau Federation.
5:00 Social Hour.
6:00 Dinner.—End.

Program

A.M.
9:00 Registration and coffee.
9:45 Presiding — H. Keith Newton,
chairman, NBA Committee on
A gr ic ul t ur e ; executive v i c e
president, A l b i o n Nat i onal
Bank.
Remarks and Greetings—Thom
as J. Aron, NBA president; pres
ident, Crete State Bank (speak
er at Lincoln); Marion B. Mor
gan, NBA vice president; presi

Scottsbluff Project Continues

T. J. W A L D O

M. F. A E G E R TE R

2:45 “ Banking Serves Agriculture”
Panel Discussion.
“Fiscal Records and Financial
Counseling” — Robert E. John
son, vice president, The Omaha
National Bank, Omaha (North

The Scottsbluff National Bank was
recently moved to one-half of its new
quarters. The old bank building, which
has housed the bank for nearly 50
years, is rapidly being torn down to
make way for the rest of the building
project.
Final completion of the building
program is expected in the spring, ac
cording to R. G. Finke, vice president.
GROUP MEETINGS

As this issue is being mailed,
the Group Meetings of the Ne
braska Bankers Association are
underway. A special report on
these six meetings will be pub
lished, complete with pictures, in
the next issue of N o r t h w e s t e r n
B a n k e r by a staff member who
will be attending all the meet
ings.
W . E. N O L TE

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

R. E. JOH NSON

D. R. JOHNSON

W . M. T H O R N D Y K E

Northwestern Banker, O ctober, Ï966

and University of Omaha football
games; Doorly Zoo, and the Joslyn Mu
seum.
Bennett Cerf, author, publisher, and
television personality, spent one day
in Omaha with First National Bank
officials and their guests. Between the
hours of 10:00 and 11:30 a.m. and 1:30
and 3:00 p.m., Mr. Cerf autographed
approximately 600 dictionaries in the
lobby of the bank.
John R. Rauritzen, chairman, execu
tive committee, First National Bank,
hosted a noon luncheon at which Mr.
Cerf addressed high school and college
officials. The superintendents, princi
pals, regents, and members of the
EMAND for loans continues to be
strong. This was indicated last
month by figures supplied by Omaha’s
14 commercial banks in response to a
call by Comptroller of the Currency
James J. Saxon and the Federal De
posit Insurance Corporation.
The figures are as of the close of
business September 20.
The call a year ago came on October
13. Comparisons between 1966 and
1965:

1966

Omaha Natl....................... $300,043,046
First Natl.......................... 141,396,605
U. S. Natl....................... 134,345,055
S. O. Stockyards........... 40,595,952
Center .............................. 18,233,261
Douglas County ............... 18,199,544
North Side ..................... 16,748,649
First Westside ................. 16,550,883
Packers Natl..............
16,038,930
Southwest ........................
9,748,230
6,336,202
Security Natl....................
Ames Plaza ....................
5,989,285
West Omaha ..........
4,553,929
Indian Hills ....................
1,307,508
Totals

$730,087,129

1965
$290,357,209
137,814,074
131,910,605
41,353,853
16,540,846
17,829,016
17,165,372
15,199,815
17,116,464
8,221,089
5,298,695
5,579,349
1,954,370
1,101,677
$707,442,434

Loans
1966

1965

Omaha Natl.......... ............$164,016,649
First Natl............ ............ 93,877,742
U. S. Natl....... ..... ............ 92,560,028
S. O. Stockyards ............. 28,072,851
First Westside __ ___ ___ 13,431,252
Center ................. ............ 13,270,243
North Side ......... .......
11,643,913
Douglas County ... ........... 10,884,418
Southwest ............
6,624,316
Packers Natl......... ...........
5,806,463
Security Natl. __ ...........
4,936,026
Ames Plaza ........ ...........
3,797,094
West Omaha ..................
2,170,710
Indian Hills ........ ...........
797,500

$163,700,886
93,214,771
80,538,451
24,798,657
11,162,294
9,585,364
11,623,570
9,502,284
5,505,444
5,789,265
4,793,969
3,304,401
1,341,826
694,120

To tals .............. ........... $451,871,205

$425,555,302

Deposits

*
V

First National Bank of Omaha has
announced a “ Salute to Education”
promotion. A Random House Collegi
ate Dictionary is being offered, free, to
depositors adding $100 to present ac
counts or new accounts opening for
$100 or more.
The bank is also conducting a week
ly drawing a grand prize of a $500
scholarship, as well as weekly prizes
of tickets to University of Nebraska

f ------------- ------------------------------------------------------------N

MUNICIPAL AND CORPORATE BONDS
LISTED STOCKS
UNLISTED AND LOCAL STOCKS

FIRST bank custom er to receive an auto
graphed d iction a ry from Bennett Cerf is
shown w ith John R. Lauritzen (ce n te r),
chmn. o f exec, comm., F irst N ational Bank,
and G-wen Marsh, bank em ployee.

Chamber of Commerce Educational
Committee, attended the lunch at the
Sheraton-Fontenelle Hotel.
After the bank closed for the day,
Mr. Cerf talked to the staff of the
First National Bank and described his
career in the publishing and the en
tertainment world.
* 4= 4
Robert L. Soener has been named a
senior account executive in the Omaha
office of First Nebraska Securities, Inc.
4= 4= *
Security National Bank moved to its
new building in Omaha late last
month.

Passes Million Mark

CHILES & COMPANY"

_________ M e m b e r , M i d w e s t S t o c k E x c h a n g e

412 Farm Credit Building, Omaha, Nebraska 68102
Phone 346-6677 (Area Code 402)
Teletype 402 348-1040
Other Offices Located in

LINCOLN, NEBRASKA
LEXINGTON, NEBRASKA
VERMILLION, SOUTH D AKO TA
N o rth w e ste rn Banker, O c to b e r , 1966

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

John H. Young, cashier of the Pickrell State Bank, reports that the bank
has passed the $1,000,000 mark in total
deposits for the first time in the bank’s
24-year history. Resources are over
$1,160,000. Two years ago, total de
posits were only $531,000.

Complete Minden Work
Work on the remodeling of the Min
den Exchange National Bank was re
cently completed.

WE LL SEE
YOU AT THE
IOWÂ
BANKERS
CONVENTION

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Federal Reserve Bank of St. Louis

e u a

"'/ ?

THE OMAHA NATIONAL BANK

N o rthw e ste rn Banker, O c to b e r , 1966

90
of Yutan, and Mrs. Peters is vice presi
dent.

Sponsors 4-H Dinner

L INCOLN banks showed a deposit
gain of 12.5 per cent on the Sep
tember 20 bank call, compared to fig
ures reported last December 31. Loans
were up 12.8 per cent. Figures re
ported as of September 20 were:
Deposits
Loans
First Natl. Bank.. $156,771,053
$ 96,012,473
Natl. Bank of Commerce 105,604,778
65,574,505
Union Bank ....................
9,015,519
6,255,815
Citizens State Bank.........
7,171,278
3,613,771
Gateway Bank ...............
5,925,219
3,552,952
Havelock Natl. Bank.......
5,598,019
2,843,666
City Natl. Bank ..............
4,643,305
3,001,769
Cornhusker Bank ...........
2,051,440
1,324,064
Lincoln Bank South.......
1,643,779
1,436,965
Totals.............. $298,424,390

$183,615,980

* *
Walter Nolte, executive vice presi
dent of the First National Bank, has
been elected president of the Lincoln
Chamber of Commerce.
He will be installed at the board of
directors’ -annual December meeting,
succeeding Donald Parker,president
of Security Mutual Life Insurance
Company.
* * *
Pictured here are Bernard Farmer
and Roy Yaley whose promotions were

ing of the year held by the Cornhusker
Chapter of NABAC, The Association
for Bank Audit Control and Operation.
Host bank for this event was the
Farmers and Merchants Bank of Mil
ligan.
George E. Turley, auditor of the
Omaha National Bank, and director of
NABAC, presented the program which
covered the history and development
of NABAC and brought members and
guests up to date on the many publi
cations, seminars, workshops, clinics,
conventions and schools which this or
ganization provides to bring its mem
bers the vital information they need
to operate their banks safely, efficient
ly and competitively.
Officers of the Cornhusker chapter
of NABAC are President, Ken Bar
nard, cashier, Farmers and Merchants
Bank, Milligan; vice president, Ray
Fiala, cashier, First National Bank,
Wahoo; secretary, Paul Scott, auditor,
National Bank of Commerce Trust
and Savings Association, Lincoln, and
C. G. “Kelly” Holthus, vice president
and cashier, First National Bank,
York.

Mayflower Descendants

B. FA RM E R

R. Y A L E Y

announced in the September 26 issue
of the N o r t h w e s t e r n B a n k e r Weekly.
Mr. Farmer is now a vice president
for National Bank of Commerce Trust
& Savings, serving as head of com
puter services for businesses and
banks t h r o u g h o u t Nebraska. Mr.
Yaley is now an assistant vice presi
dent in the correspondent bank depart
ment.

Mr. and Mrs. Hubert H. Peters at
tended the annual conference of the
General Society of Mayflower descend
ants held at Plymouth, Mass., last
month. Mrs. Peters was an elected
delegate from the Nebraska chapter.
Mr. Peters is president of the Bank

N ofor
rthFRASER
w e ste rn Banker, October, 1966
Digitized
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Federal Reserve Bank of St. Louis

Elect Fremont Director
Gene Tallman of Lincoln has been
elected a director of the First National
Bank of Fremont, according to Chair
man W. H. Mitten.

Reaches 1 0 0 Per Cent Goal
Harris V. Osterberg, executive sec
retary of the Nebraska Bankers Asso
ciation, reports that the NBA now has
every bank in the state as a member
of the association.

-L

Start Bassett Project
Work has started on the building
project at the Commercial Bank in
Bassett.

Bruning Building Progress
Work is continuing on the remod
eling project at the Bruning State
Bank. An open house will be planned
for the observance of the bank’s 75th
anniversary, as well as for the com
pletion of the remodeling.

Double Ainsworth Capital
Capital stock of the Commercial Na
tional Bank, Ainsworth, has doubled
as of last month, according to Presi
dent Dale Sorenson. It is now $100,000.

VI/. I M a k e s liesea reli tira n t
T HE Nebraska Bankers Association
has made a $2,500 research grant
to The University of Nebraska Col
lege of Business Administration. The
purpose of the grant is to stimulate
and provide assistance for research
in the area of banking and finance in
Nebraska and the nearby region.

First NABAC Meeting
Milligan, Neb., was the gathering
place for bankers from 29 southeast
ern Nebraska banks for the first meet-

For the past 20 years the Washing
ton County Bank, Blair, has honored
4-H Club leaders at a recognition din
ner.
Certificates, pins and plaques have
been presented leaders who have
served one year, two years, five years,
etc.
There were 40 guests present at the
first dinner. Now attendance runs to
225 leaders, husbands or wives and
other guests.
The bank also supports 4-H in other
ways. It makes project loans and
helps to provide Short Course scholar
ships for 4-H members.

Those eligible to receive assistance
are faculty members of the College of
Business Administration, or graduate

students in one of the departments of
the college.
The first recipient of this research
assistance is Professor Carl C. Nielsen,
assistant professor of business organi
zation and management.
In announcing the grant, Thomas J.
Aron, president of the Nebraska Bank
ers Association, said that “research”
in the area of banking and finance
would be of great assistance to the
member banks of the association.”

Bankers with plans use the

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

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

FIRST NATIONAL BANK
S

. T

12th & A TS tr e e t—L in coln , N eb ra sk a

o f

i n

l n

M e m b e r : F .D .l .C .
N o rth w e ste rn Banker. O c t o b e r , 1966

Nebraska News

P A N E L M EM BERS at B e e f Cattle C on feren ce w ere, le ft to rig h t: R ancher Mickey
Stewart, O’N eill, N e b r .; Feeder-C attle Buyer Byron C. Hayes, C hillieothe, M o.; CattleF eeder Martin R. Domke, G reeley, Colo.; Don R. Ostrand, v.p., First N atl., Omaha;
P an el M od erator Merv Aegerter, a.v.p., F irst N atl., O m aha; M eat P acker Wm. E. Gray,
W ilson & Co., Chicago, and E con om ist Michael S. Turner, ITniv. o f N ebr., Lincoln.

At 1st National of Omaha Conference

See

is expected until late this fall, when
some increases are anticipated, prob
ably not before late December and
then working generally higher to a
price for choice steers at the river
markets at from $27 to $28 per hun
dredweight and possibly hitting the
$29 to $30 mark by mid-year.
The feeder cattle market was a dif
ferent story; however, it was generally
felt that the price pattern here would
remain relatively strong throughout
the remainder of the fall season and
then advance along with the fat cattle
prices late this winter and next spring.
Culling Cow Herds

Rancher Panelist Mickey Stewart of
O’Neill, Neb., feels that he and his
fellow ranchers are making adjust
ments by severe culling of cow herds
to match present feed supplies which
in many areas of the vast range coun
try have suffered a reduction from
normal because of very dry weather
earlier in the season. He further
added that in many cases the con
tinued increased fixed cost to the

N e a r -T e r m
Stafa r
fJ.S. iieon om i/. # « I t a ttle T r ie r s
By M A L C O L M K . F R E E L A N D
Pul)lisher

Eighth Annual Beef Cattle
T HE
Conference sponsored by the First
National Bank of Omaha last month
drew bankers from South Dakota,
Wyoming, Colorado, Kansas, Nebras
ka, Missouri, and Iowa for this fullday program which has become widely
recognized as one of the leaders in the
field.
This year’s theme was “Chute . . .
’em Up! when they show the most
profit.” Five outstanding panel mem
bers from four states appeared before
this capacity group of bankers in the
highly interesting afternoon program

that saw the present and future beef
cattle situation quite carefully, expert
ly and thoroughly analyzed from the
standpoint of production and market
ing conditions for both the rancher
and the feed lot operator.
Uncertainties for Fall

It was the consensus of this group
of experts that this fall seems to pre
sent more than the usual number of
uncertainties concerning feeder cattle
prices. It was, however, the confirmed
general opinion of these men that a
fairly stable fat cattle price pattern

K E Y M E N at B e e f Cattle C onference w ere
Arthur S. Harper, forum speaker, flanked
b y John Lauritzen, chmn., exec, comm.,
le ft, and John F. Davis, pres, o f host bank.

rancher is now resulting in many
cases of only a one or two per cent
return on capital investment.
Program to Offset Shrink

WE LL LOOK FOR

YOU . . .
at the I.B.A.
CONVENTION!!
John Van Horne

Bob Roberts

Investments
FARM CRED IT BLDG.

OM AHA

Ten Pei* Cent Higher Feeder Cost

Inc -

PH O N E 345-2241

OVER A H ALF-CEN TU RY O F BANKERS CO N VEN TIO N S
AND GRO UP MEETINGS
o rthw e ste rn Banker, October, 7966
DigitizedNfor
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Federal Reserve Bank of St. Louis

Feeder cattle buyer Panelist Byron
C. Hayes of Chillieothe, Mo., looks for
a slight dip in feeder cattle prices in
the next few weeks in areas adjacent
to the corn belt where farmer feeders
will be busy making their annual si
lage crop harvest. He impressed the
group with his program of a two- or
three-day “build up” of all feeder re
placement purchases prior to ship
ment to feed lots with a high energy,
high protein ration composed mostly
of molasses, urea and roughage. He
had figures to prove that shrink had
been cut in half by shipment of calves
from 200 to 400 miles destination.
Cattle feeder Panelist Martin Domke
from Greeley, Colo., looks for cost of
gains to be at least 10 per cent higher
in his territory next year because of
the higher price of corn which is cal-

G ene Eaton

Senior Vice President

G lenn Yaussi

Myron

Robert A . W ekesser

L. E. A lfo rd

Senior Vice President

Vice President

H erm an Brockm eier

Thom as J . W a ld o

Senior Vice President

Vice President

W eil

Exec. Vice President

President

Robert L. H ans

W ilb u r Baack

W ayne Sm ith

Asst. Vice President

Vice President

Ag Representative

Rex M iller

A . C . H o lm q u ist III

Vice President

Asst. Vice President

Who says
its
y

not

W inton Buckley

Vice President

Ed Huston

Assistant Cashier

what you know . . .?
Not us. The fine banking
what you know. But we're
to know the meaning of
is to know and work with
spondents at NBC.
Rodney V andeberg

Asst. Vice President

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

service you give certainly depends on
not slighting W H O you know. Because
really excellent correspondent service
these men— your Capital City Corre

Jim Nissen

Vice President

Phone 402-477-891 I

N ATIO N AL

BANKopOOMMERCE
M EMBER: F. O. I. C .

T R U ST & SA V IN G S
L IN C O L N . N E B R A S K A

No rthw e ste rn Banker, O c to b e r , 1966

Nebraska News
many of the plants that are not ade
quately financed.

Beef Consumption to Climb

Economist on the panel, Michael
Turner, representative of University
of Nebraska College of Agriculture,
Lincoln, reported that the first indica
tion that we are moving into rebuild
ing and building up of cow numbers is
the fact that total cow slaughter has
turned downward. He further be
lieves that the prediction that by 1975
an increase of at least 30 per cent in
beef consumption is on the low side.
PREVIOUS W IN N E R S o f Crystal B all G azing Contest, sponsored b y F irst N atl., Omaha,
are show n w ith Don Ostrand, v.p. ( le f t ) . They are: James H. Oliver, pres., The R avenna
Bank, R avenna, N eb r.; Charles T. Backer, exec, v.p., Burt C ounty State Bk., Tekam ah,
N eb r.; H. C. Bierwirth, pres., Com m unity St. Bk., W h itin g, Io w a ; Frank L. Fonda, cash.,
Bank o f St. E dw ard (N e b r .); Merv Aegerter, a.v.p. o f host b a n k ; F. M. Erdewyk, pres.,
B reda Sav. Bk., B reda, I o w a ; Jens J. Jensen, exec, v.p., Farm ers & M erchants St. Bk.,
Bloom field, N ebr., and Howard M. Logan, pres., F irst Tr. & Sav. Bk., M oville, Iow a.

culated to reach the $1.50 per bushel
mark on Midwest farms by next sum
mer. He feels that replacement cattle
costs will remain high through the
season in his terrritory primarily be
cause of the great demand of new
Texas commercial feeding operations
that have come into being in the last
several months, many of them with
no previous cost records and all anx
ious to fill their lots at prices that will
make it difficult for the established
operator who knows cost of gains to
compete.

Shake-Out of Packers Looms

Meat packer representative William
Gray of Wilson & Company, Chicago,
believes there will be a shake-out in
the packing industry in the next few
years because the building of many
new plants throughout the country
has provided a situation where total
plant capacity is only operating at the
present time at about 65 per cent max
imum. Reduced supplies foreseeable
in the next couple of years will drop
this figure even lower, he said, making
profitable operations impossible for

Economist at First of Omaha Forum

Viewsikifi'ieuU
the current economic
COMPARING
picture with a hangover suffered
by those who celebrate too vigorously,
Arthur S. Harper, vice president of
Lionel D. Edie & Company, New York,
portrayed a somewhat dim picture for
the next 12 to 18 months for bankers
and businessmen attending the Forum
of Finance sponsored by the First Na
tional Bank of Omaha last month.
Mr. Harper, whose firm is economic
adviser to a number of large banks in
America, including the First of Oma
ha, stated that the economy probably
is headed for a bumpy period of tran
sition from unsustainable boom to
more moderate growth in the next
year or so. This was in contrast to
his optimistic predictions made at for
mer annual conferences sponsored by
the bank.
Strongly critical of the Administra
tion and its failure to apply fiscal re
straints to an economy that is near the
“boiling point,” Mr. Harper suggested
Northwestern Banker, O ctober, 1966

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Federal Reserve Bank of St. Louis

that the economy has been moving
ahead too fast and a headache is the
likely aftermath. He stated that our
growth rate this year has been at the
rate of about 9 per cent, which is un
sustainable and inflationary. Normal
growth for a dynamic economy is 4
to 5 per cent. He questioned the value
of a belated tax increase after the elec
tions.
Mr. Harper had high praise for the
Federal Reserve in its efforts to con
trol inflation, declaring that it has had
to “carry the load alone.”
Looking at the long-range outlook,
Mr. Plarper sees a much brighter pic
ture. By 1975, he foresees much high
er levels in most business endeavors,
including a Gross National Product
which is double the present output,
and a Dow-Jones stock average near
the 2,000 mark. He concluded by say
ing that there is a tremendous growth
potential if we can minimize the ef
fects of the near-term transition.

B EH IN D THE SCENES — M uch o f the
planning fo r the 8th annual con feren ce
was done b y C. D. Anderson, v.p., First
N ational Bank, Omaha.

Panel moderator was Mervin F.
Aegerter, assistant vice president of
the First National Bank of Omaha.
The entire group of well over 400
in attendance was treated to a fine
cocktail hour and steak dinner in the
ballroom of the Fontenelle Hotel in
downtown Omaha.— End.

Sponsor Feeder Outlook
More than 300 cattlemen from the
Ord, Neb., area attended the ninth an
nual “Feeding Outlook Meeting” spon
sored by the First National Bank,
Ord, according to Donald E. Stewart,
assistant vice president.
Clark Wechbach, president of the
bank, welcomed the cattlemen. Dr.
Phil Henderson, University of Nebras
ka economist, appeared on the pro
gram again this year, and predicted
that by mid-1967 we may see some $28
to $30 cattle.
Tom Waldo, vice president, Nation
al Bank of Commerce Trust and Sav
ings, Lincoln, representing banking in
terests as one member of a panel, told
the cattlemen that they should not
encounter any great difficulty in ob
taining loans in Nebraska during the
next year on any sound investment
despite the tight money situation.

These First National Bank men will help
move your bank into the computer age.

Bill Gregg (left), Herman Jacobs

They’re systems men and members of our data processing staff.
Their job is to work with correspondent banks and our cor
respondent bank staff to establish in-bank procedures which
make it possible for you to use our computer to process and
prove your demand deposit records, savings, installment loans,
and for other bank related tasks. They’ll train your staff to
help you make a smooth transition, too.
This is still another service provided you by your First National
correspondent banker. Give him a call.

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Federal Reserve Bank of St. Louis

0 f ir s t
NATIONAL
5 BANK
g OF OMAHA

Member Federal Deposit Insurance Corporation

A lw a y s th e F ir st to S e r v e Y o u .
N o rth w e ste rn Banker, O c to b e r , J966

Nebraska

News

At First National o f Lincoln—
X e l i r n s t w
E x c i t i n g

a u l i e r s

h o n k

til

t i e !

tin

F u t u r e
By B E N H A L L E R , JR .
Editor

than 450 persons attended
MORE
the annual Correspondent Bank
Conference sponsored in Lincoln last
month by the First National Bank
and Trust Company of Lincoln. Fol
lowing the program outline of pre
vious years, bankers were given a
day and a half of “shop talk” in three
business sessions, then they adjourned
following a S a tu rd a y noon buffet
luncheon to Memorial Stadium in Lin
coln. Both the Conference and the
University of Nebraska Cornhuskers
were winners, the latter with a 14-10
margin over Texas Christian Univer
sity in the season opener.
Three panels gave the visiting bank
ers a quick look at “ Taxes and Estate
Planning,” som e thought-provoking
ideas on “What’s Ahead for the Next
100 Years,” and some professional
opinion on “The Livestock Outlook.”
Burnham Yates, president of the
host First National Bank, told the vis
iting bankers in summary, “Don’t
think of yourselves as bankers, but as
financiers aiding our various publics
in the progress that lies ahead. To
accomplish this, all of us must employ
the right people and pay them accord
ingly.”
Bob Devaney, popular head football
coach at the University of Nebraska,
again addressed the men at the open
ing noon luncheon on Friday, Sep
tember 16, giving a brief rundown on

the manpower available for this year’s
national contender team. His hilari
ous talks are a trademark of such ap
pearances, but he does an about face
when game time rolls around and is
all business, as attested to by his
10-0 record of last year and the open
ing win this year.
Taxes and Estates
Lyle Stoneman, vice president of
First National, was moderator of the
“Taxes and Estate Planning” panel
which was the first order of business.
Participants were Thomas O. Scheer,
C.P.A., Peat, Marwick, Mitchell &
Company, and Howard A. Chapin, vice
president, First National Bank.
Mr. Scheer briefly reviewed the tax
approach taken by the Internal Reve
nue Service, noting that the IRS al
ways comes up with the highest valua
tion that can be assessed and “the
stern fact of life is that the IRS is out
to protect its revenue and is not out
to protect a family.” He listed the
three primary goals of estate planning
as: (1) Anticipating the valuation of
the estate, (2) Finding the money to
pay the estate taxes incurred, (3)
Eliminating or reducing the estate tax
by legitimate means.
He suggested buy-sell agreements as
one solution to the first goal, where
such instrument is appropriate. Other
legal steps involving recapitalization,

for one, were listed. The second pri
mary goal involves payment of taxes
due within 15 months after death. Life
insurance is one obvious answer, and
Mr. Scheer also listed certain U. S.
Government securities. The third
goal involves professional estate plan
ning, in order to anticipate and reduce
unnecessary taxes. This portion was
covered by the other panelists.
Mr. Chapin offered five charts as
considerations in estate planning. The
first dealt with an estate of $250,000
gross value. The other four all dealt
with an estate of $1,500,000 gross,
showing how different procedures re
duced taxes.

Next 100 Years

Panelists for “The Next Hundred
Years” were four University of Ne
braska deans, and a Lincoln attorney.
Moderator was Charles S. Miller, dean,
College of Business Administration.
Others were John R. Davis, dean, Col
lege of Engineering; Elvin F. Frolik,
dean, College of Agriculture; Wesley
C. Meierhenry, assistant dean, Teach
ers College, and Thomas R. Pansing,
president, Nebraska National Life In
surance Company. Nebraska is hav
ing a statewide observance of its cen
tennial year.
Dean Davis said Nebraskans must
realize their future needs in relation
to the entire world. He stated U. S.
problems as being power, water, edu
cation and taxes. He predicted that
larger companies will grow larger, of
themselves and through merger, and
smaller companies will become more
specialized. All this tends to lead to
scientific orientation and this will re
quire industry to be based adjacent to
first class facilities. Nebraska, he
added, must do this to attract more
industry. He said Nebraska’s engi-

-V

NEXT 100 YEARS in Nebraska were forecast by five men in
picture at left (from left to right)—John R. Davis, Wesley
C. Meierhenry, Thomas R. Pansing, Elvin F. Frolik and Charles
S. Miller, all of Lincoln. Mr. Pansing is pres., Nebraska Natl.
Life Ins. Co., and the other four men are all deans at the
University of Nebraska. RIGHT— U. of Nebraska Head PootN o for
r t h FRASER
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Federal Reserve Bank of St. Louis

ball Coach Bob Devaney is not lecturing about the next 100
years, just the next day’s football game with T.C.U., which
the Cornhuskers won, 14-10. Enjoying the talk at right are
Burnham Yates, pres., 1st Natl. B&T, Lincoln, and John Burt,
deputy regional Comptroller of the Currency, Kansas City, Mo.
Mr. Devaney is noted as a humorist as well as a coach.

W e 'd like to say

"H O W D Y "
and share ideas with you
AT THE IO W A STATE BANKERS' MEETING
FR A N K SIBERT and C E C IL M EAN S
There's no better way to help make the banking busi
ness serve our communities better than for bankers
to get together and share experiences and ideas.
That's why we look forward to the Iowa State Bankers'
meeting where we can meet you personally and talk
to you. Our specialized correspondent banking serv
ices, especially in the livestock field, should give us a
field of mutually profitable discussion.

See you in Des Moines October 16 through 19

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Federal Reserve Bank of St. Louis

MEMBER FED ER A L DEPO SIT IN S U R A N C E C O R P O R A T IO N

N o r t h w e s t e r n B a n k e r , O c t o b e r , 1966

Nebraska

News

X-

T A X A N D ESTATE panelists (at left) included: Howard
Chapin, v.p. & sr. t.o., 1st Natl. B&T, Lincoln; Lyle Stoneman,
v.p., the host bank, and Thomas O. Scheer, Lincoln C.P.A.

neering research budget ranks 45th in
the nation among the states.
Dean Frolik recounted some antici
pated developments in agriculture in
the next century that are both unique
and near incomprehensible to the lay
person. His projection of world pop
ulation reaches 25 billion in 100 years
from the present six billion, affording
only one and one-third acres per per
son. This will require using the
oceans and the planets, he said.
Which brings up the problem of feed
ing this population. He touched on
raising food in both the Arctic and
Antarctic circles, under the ocean, on
top of the ocean, and through chemosynthesis as opposed to photosynthe
sis. He said we now use one or two
per cent of available solar energy,
whereas we will learn how to use up

EIGHT—Members of the livestock panel, from left to right:
Merle Stalder, Salem; Arden Johnson, Exeter; Cecil Emrich,
Norfolk, and Les Curran, a.v.p & ag rep, 1st Natl. B&T, Lincoln.

to 10 per cent. Scientific advances
will reclaim much land for agrarian
use and then double or triple produc
tion from the land.
Dean Meierhenry stated that man
made his living in the first 100 years
of Nebraska on the basis of hard work.
He predicts in the next 100 years he
will make his living based on intellec
tual activity. This places the need
squarely on education to do a better
and more thorough job. The dean
predicts there will be less emphasis
placed on the young people’s educa
tion, and more emphasis on education
for adults as a continuing program,
because in a short time what a student
learns in college is obsolete, making
it necessary to continue adult educa
tion. He foresees a decentralization of
educational activities, rather than a

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centralization in bigger educational
centers, due to the cost of getting these
people together. Advanced electronic
techniques of visual and audio com
munication will provide instant access
for all remote educational locations to
the mass of the world’s learning. This
will involve “learning stations” for
students and adults. One system al
ready links 30-40 universities with
means of interchanging information,
thus helping smaller schools cope with
inadequacy of libraries or teaching
staffs.
Mr. Pansing predicted increasing
importance for Nebraska, Iowa and
the Dakotas, for three reasons: (1)
Space is here for population growth,
(2) Food production capability, (3)
Plentitude of clean water. He thinks
Nebraska will congregate in four or
five “sprawl” areas, and that small
towns basically will disappear. He
lists the “sprawl” areas as Omaha-Lincoln, Nebraska City area, HastingsKearney area, Scottsbluff area, and
Sioux City area. Increasing empha
sis will be on education for young
and adults. National corporations will
become larger through merger, and
the same will hold true for Nebraska
banks, insurance companies and utili
ties, in his opinion.
Dr. Miller brought up the subject of
whether there should be continued
public ownership of power in Nebras
ka or if it should be privately owned.
He said the subject was raised only so
that a reassessment could be made to
determine if the present course should
be followed or altered.
Livestock Outlook

INVESTMENT BANKERS
M em ber, M id w e st S t o c k E xch a n g e
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o r t FRASER
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Moderator for “The Livestock Out
look” panel was Les Curran, assistant
vice president of the First National.
Participants were Cecil Emrich, oper
ator of the Norfolk Sales Barn; Arden

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100

Nebraska

News

Johnson, feeder from Exeter, and
Merle Stalder, feeder from Salem.
Mr. Curran, in starting the panel,
noted it will take more money this
year from a “tight” economy to put
the same number of head of livestock
in the feedlots. He said there is a 5
per cent increase total in demand,
with a drop of 2 per cent in the 1966
spring calf crop and a 3 per cent in
crease in consumption at the slaugh
ter level.
Mr. Johnson, an official of the Na
tional Livestock Feeders Association,
said it is the goal of NLFA to keep
feeders free from government domina
tion and from association domination.
He reviewed government activity and
action taken by NLFA to counteract
these USDA moves. He further re
lated action taken by his organization
against advertising adverse to the live
stock industry.
Mr. Stalder emphasized the con
tinued “change” in his business and
that it will no doubt continue this
way. His family’s feeder operation
goes back more than 70 years and one
basic factor is still important, he said,
from his grandfather’s day—get the
most from the land. He runs both
hogs and cattle, noting the recent hog

th e

C o rre sp o n d e n t

market drop. If it reaches $20, he
said, “we’re in a new ball game.” Feed
costs dictate keeping numbers in
hand. He has two basic programs
with cattle to maintain continuous
marketing: (1) 700-900 pound cattle
purchased that can be upgraded, feed
ing them in order to market each
week if possible. These are mainly
steers. (2) Light yearling steers or
heifers, using high roughage and si
lage first and then to pasture in the
spring. This is to have cattle avail
able to market when replacements
may not be readily available. He buys
replacements whenever and wherever
he can during the year, using order
buyers, but trying to look at strings
of cattle personally. He uses mostly
Kansas and Oklahoma cattle. He said
the trend in his area is to direct sell
ing and the trend is away from central
markets.

sized the importance of central mar
kets as the “show room” for the live
stock industry to sell its wares, just
as business firms must maintain show
rooms. More money needs to be spent
in the industry, he stated, on promo
tion of the value of red meat, and for
better distribution of the product.
In responding to questions, Mr. Emrich forecast c o n s id e r a b ly higher
prices in 1967 for beef, based on low
ered cattle population, reduction in
cows and heifers, and reduced calf
crop.
A banquet for bankers and their
wives Friday evening at Hotel Lincoln
was followed by delightful stage enter
tainment, then relaxing with friends
in the penthouse roof garden of First
National Bank & Trust Company’s
building.— End.

Mr. Emrich reminded his audience

State Banking Director Byron Dunn
reported recently an application has
been filed seeking authority to change
the location of the Bank of Dixon
County in Ponca.
He said bank President F. R. Kings
bury of Ponca asked for authority to
move the bank to a new building in
the Northeast Nebraska community.

that U. S. farms have $238 billion as
sets, equal to two-thirds of U. S. cor
porations. He said surpluses are not
a problem because people in the world
are going hungry, and that distribu
tion and merchandising are the keys
to continued farm progress, along with
a firmer hand in politics. He empha-

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T H E F IR S T N A T IO N A L B A N K
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Phone: 8 1 6

Member Federal Deposit Insurance Corporation
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Faith In Yo ur Future

U N IT E D

A M E R IC A N

L if e In s u r a n c e C o m p a n y
W. W. Wilson, Jr., President
Now

in 31 State s

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Denver, Colorado
N o rth w e ste rn Banker. O c t o b e r ,

1966

102

Nebraska

News

At Omaha National’ s
Centennial Conclave-—
S p e a k e r s

L o o k

F o r

e b r a s k a a n d

a i

Y e a r s

A h e a d

i t a n k i n t j

By BEN HALLER, JR.
Editor
S PART of its year-long program
A
of saying “Thank you” during its
Centennial Year to the various pub
lics it serves, The Omaha National
Bank last month was host to approxi
mately 1,000 correspondent bankers
and their wives. The Correspondent
Bank Centennial Conclave business
sessions were held in Hotel SheratonFontenelle ballroom during the day,
and the delightful evening dinner and
entertainment was staged in the Oma
ha Civic Auditorium.
The importance of correspondent
bank relationships to the present stat
ure of The Omaha National as one
of the leading banks in the entire
midwest and mountain states was
made evident by the size of the crowd
alone. Bankers from most states in
this area were present, along with
i

President Greets Guests

The following morning, guests were
greeted at the opening session by Mor
ris F. Miller, president of The Omaha
National Bank. He then turned the
proceedings over to Jack Shonsey, ex
ecutive vice president, who was mas
ter of ceremonies for the balance of
the day. Mr. Shonsey was assisted in
preparation of the program by a com
mittee consisting of Herb H. Echtermeyer, senior vice president and head
of the correspondent bank depart

_______r

l o

officers from larger banks in major
cities coast to coast.
Early arrivals on Wednesday, Sep
tember 21, were entertained with a
reception and Dixie-Land music played
by Mort Wells and his band in the
Fontenelle ballroom that evening.

Industrial Panel

The entire tone of the Centennial
Conclave was geared to a look ahead
into the balance of this century and
into the next one. Providing a busi
nessman’s preview of things to come
were three well experienced Omahans
discussing “ Industrial Development.”
They were Lee Fettig, manager, area
development department, N orth ern
Natural Gas Company; John Godfrey,
chief executive officer of land division,
and assistant to the president, Union
Pacific Railroad, and Robert D. Shreve,

ment, Fred Douglas, vice president in
the department, and other members of
the department staff.
In his opening remarks, Mr. Miller
recalled for the audience that the bank
opened for business on July 2, 1866,
and just three months later The Oma
ha National Bank had its first corre
spondent bank account. This was
from the First National Bank of Den
ver, and it is still an active account
100 years later without interruption.
Eugene Adams, president of First Na
tional Bank of Denver, was present
with Carroll Stubbs, senior vice presi
dent of First National. Both men were
introduced to the audience.

Pardon our Missouri drawl, but we can't help braggin' a-mite. St.
Joe's the country's fastest growin' livestock market, and for
good reason. We've got the most modern facilities, the best
location, and a rip-roarin' herd of salesmen that love to see compe
tition "bite the dust." We can sum it up by sayin' — folks like the
way we do business.

N ofor
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w e s t e r n B a n k e r , O c t o b e r , 1966
Digitized
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Federal Reserve Bank of St. Louis

tjf'/vieni

V \

Nebraska

sales and marketing director, Metro
politan Utilities District.
Mr. Fettig covered “ The Role of Re
search in Area Development.” He
emphasized to bankers seeking indus
trial development for their communi
ties that it is only usable information
that answers specific questions that
can be helpful in wooing new business
to the city. Three factors that must
be looked at when considering a local
ity are: (1) availability of raw mate
rial, (2) means of converting that raw
material into a product—labor, facili
ties, materials, and (3) markets. He
said “raw materials” must be consid
ered to include the end product of
one industry as being raw material
for satellite industries.
Mr. Godfrey discussed “Land Acqui
sition — Procurement and Planning.”
After establishing a demand for indus
try, generated either from within the
community or by an outside source, it
is inevitable, Mr. Godfrey said, that
one of the first persons contacted by
an industrial firm is the local banker.
Retaining confidences th r o u g h o u t
such negotiations is vital, he noted.
An industrial site for a city, he
stated, must have all the services
needed for such a center—all forms

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Federal Reserve Bank of St. Louis

of transportation, complete utilities,
adequate water, protection services,
good city planning that will distinctly
identify industrial areas apart from
residential areas.
Mr. Shreve’s topic was “Marketing
the Local Area.” He urged bankers
to work for unity of all groups seek
ing new industry for a community,
with everyone knowing all the city’s

News

103

assets, all the facts, since there will
probably be only on opportunity and
each person must be prepared for it.
A good follow-up to any contact also
is a vital ingredient.
He listed the four specific methods
of contact with prospects as personal
calls, advertising, brochure mailing,
and personal letters. Emphasizing
the “area concept” is a much better

A 100-YEAR correspondent bank relationship between The Omaha National Bank and
The First National Bank of Denver was noted at The Omaha National’s Centennial
Conclave. The First National opened an account with the new Omaha bank October 2,
1866. Pictured above discussing the event are, left to right: Fred H. Douglas, v.p.,
The Omaha Natl.; Carrol E. Stubbs, sr. v.p., and Eugene H. Adams, pres., The First
National on Denver, and Herb H. Echtermeyer, sr. v.p., The Omaha Natl.

i n

there's just one bank in the Stockyards. The First Stock Yards
Bank has an experienced finger on the pulse of this
dynamic market. Close contact with market and livestock
interests means up-to-the-minute information on
money matters for correspondents.

Northwestern Banker, October, Ï9 6 6

104

Nebraska

News

INDUSTRIAL DEVELOPMENT panelists are pictured with Morris F. Miller (second
from left), pres, of The Omaha Natl. The three panelists, from left, are: John W.
Godfrey, Robert D. Shreve and Lee Fettig.

approach, Mr. Shreve said, than trying
to sell the individual city or town by
itself.
A Look at Agriculture

Following this panel, the next guest
speaker was well-known Dr. Earl L.
Butz, dean, School of Agriculture, Pur
due University, Lafayette, Ind. Dr.
Butz directed his talk at telling bank
ers why they should never tolerate
hearing one of their farm customers
say, “ I’m just a farmer!” He pro
ceeded to show how American farm
ers are doing a better job than ever
today by using only 3 per cent of the
working force to produce over 90 per
cent of the food requirements of the
nation.
Dr. Butz described a survey of Indi
ana farms that showed 250 farms with
an average of 350 acres, each with an
average of $123,000 in land, buildings,
stock, etc. There are one and threefourths workers per farm, or a $92,000
investment per worker. The compar
able figure for an industrial worker is
$20,000 average investment per work
er. The same things hold true for
Iowa and Nebraska farms he said.
Dr. Butz believes we are moving
into a state of permanent debt on the
farm, and if banks don’t handle this
debt, the government will. He said
agriculture is at a critical point in its
history, with population trends rising,
virgin sod gone, highways removing
30 acres per mile, and gradually fewer
acres to work on.
The best way to solve the world’s
food problem, and the growth in popu
lation here at home in the immediate
future, Dr. Butz said, is to make farm
ing profitable and turn farmers loose
on the job at hand.
Farming and food products are more
than a local p o lit ic a l factor, he
stressed, for they have a bearing on
the attitude of the rest of the world
toward the United States and our fulo r t FRASER
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fillment of a responsibility as the
world’s leader. American banking will
play a vital role in financing this na
tional and world expansion in the
years ahead by providing the capital
requirements to do this job. Such a
vital job to be done, he emphasized
again, is why bankers should never
tolerate having a customer say, “ I’m
just a farmer!”
What’s Ahead for Midwest

A look at “What’s Ahead for the
Midwest” was provided by James Alcott, director of economic development
for Midwest Research Institute, Kan
sas City, Mo. After noting the pro
jected growth in GNP by the year
2000 to $2 trillion, and a 75 per cent
increase in the U. S. population by
then, Mr. Alcott reminded his audi
ence that the midwest hasn’t partici
pated in the last 20 years’ growth like
the rest of the country — there has
been a decrease in farms, lack of fed
eral funds spent here, and less indus
try developed here.
Nebraska, he stated, is growing at
less than the national level. Lincoln
as state capitol was listed as destined
to grow more than other cities in the
state. The most rapidly growing area
of expenditures in the U. S. today is

AT THE MICROPHONE is John M. Shonsey, exec, v.p., The Omaha Natl., intro
ducing the next speaker, Dr. Earl L. Butz.

in services, Mr. Alcott noted, and 40
per cent of the working force now
engaged in production will be down to
35 per cent by 1975.
Advances in technology by 1980 will
account for 46 per cent of our growth.
The comparable figure in 1929 was 26
per cent. One sociological factor to
be contended with, he believes, is that
work as we know it will dwindle in
importance when machines are doing
more of the work. This will lead to
greater stress on education for adults
as well as younger people, and more
time for leisure pursuits. Goals be
tween now and 2000 will be oriented to
the growth and enrichment of man’s
personal advancement, dignity and
culture, rather than the economic
goals of the past two or more decades.
Former CBS news correspondent
David Schoenbrun delivered a most
thought-provoking address on national
and world affairs. His pointed ques
tions touched on domestic and foreign
policy issues that the audience was
discussing in the hallways long after
the meeting had adjourned.
Division Head Speaks

The balance of the afternoon pro
gram was devoted to talks by Omaha
National’s five division heads. Mr.
Shonsey discussed agriculture today
in his role as head of the marketing
division.
Mr. Shonsey said wheat in Okla
homa and Kansas this year is tops
and corn in Nebraska, Iowa, Colorado
and South Dakota is generally good.
He foresees a shortage of heifers
and cows in 1967, following recent
high slaughter of cows and reduced
calf groups. The supply of hogs will
be up in the next 12 months, the sup
ply of broilers and turkeys will be up
(the latter up 12 per cent and in large
supply this fall).
Beef imports will continue the bal
ance of the year until the U. S. moves
to control them when they hit 950
million pounds.
Mr. Shonsey noted that the trend is
for mature cattle to slaughter. Where
35 per cent of the total slaughter was
calves, now it is 19 per cent. The
supply of feed grain carryover was
listed as inadequate.
Referring to the growth in numbers
of packing houses he said the fierce
competition was reducing profits. The
plant with costs exceeding $12 per
head “is in trouble.” Looking ahead
it will be $10. He said a return to
large market concentration points will
probably take place soon, rather than
decentralization of cattle markets.
“Politics need cheap food prices and
will always try to hold them down,”
Mr. Shonsey concluded.
r

When the Farmer Profits . . .
The Local Bank Also Profits!
Agricultural bankers know that when the local farmer or rancher prospers their bank normally prospers,
too. Why? When the farmer prospers— he has more money to deposit in the bank— he has more money to
spend, locally . . . with more money put in circulation, other people buy . . . the community prospers . . . the
bank prospers.
Agriculture is big business today, and the good farmer, the prosperous operator, must be well informed. He
must be a good manager. He must know costs. He must be informed on price trends. He must know how to
handle his financial affairs including bank credit. He must know something about taxes. In short, he m u s t b e
a g o o d b u sin e ssm a n !

THE FARM PICTURE ¡s edited to help your farm customer
become that better businessman. Hundreds of farm tested
ideas related to making and managing money are published
annually in TH E FARM PICTURE. By providing this informa
tion for your farm customer you help him to become better
informed on money matters— you help him to become a bet
ter farm manager— you help him to become more prosperous,
and— you help him to raise his credit standing. IN TURN
YOU H ELP YOUR OWN BANK.
THE FARM PICTURE can have a tremendous public rela
tions value for your bank as it has already demonstrated for
hundreds of other bankers who now send TH E FARM PIC
TURE to their farm and ranch customers. The chart at the
right shows how rapidly THE FARM PICTURE has been ac
cepted by bankers. And here are—
SOME REASO N S W H y THE FARM PICTURE
HAS GROW N SO FAST
U ) Every issue helps softsell the idea of full service bank
ing. Feature articles help farmers and ranchers to think
money and credit in bank terms.
(2) The agricultural outlook is presented in depth every
month. Readers are never in the dark as to why Farm
Picture economists think as they do. Thus, farmers and
ranchers are in a position to make up their own minds.
(3 ) Four different regional or functional editions are avail
able. you'll find one that fits the dominant type of
agriculture served by your bank.
1 4 ) Exclusive options include tailored ads on page 4 that
tell your own story. Also available— franchise Pixure
Ads and Plain Talk editorials that help make the Farm
Picture exclusively yours. Plus featured Ad-Of-TheMonth at a special low rate.
(5) Special introductory programs make it easy to try out
The Farm Picture in your own area on a 30-day— 60-day
— 90-day basis. PREFERENCE RATING SURVEyS can
help you test farmer reaction to The Farm Picture be
fore giving up an older out-moded program. We share
in the cost of TRADE AREA SURVEyS designed to help
you build an all-request mailing list.
Please

c r o u se
r ep o r ts

A single subscription
at $10.00 per year

W e would like to have—
□ A n introduction to T H E F A R M P IC T U R E
I I The Trade A re a Survey brochure
I I The Preference Rating Survey brochure
I | Rate Schedules

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Federal Reserve Bank of St. Louis

October 1958 to October 1967

Signature.________________________________________________

□ Ask your representative to call
I | Reserve our territory for 90 days
I | A c c e p t our order for.________ copies

THE FARM PICTURE,
Circulation Grow th in the First Ten Years

Title__________________________________________ _
Bank Name..________ _______________________________________
A d d re ss________________________________________________
State
P.S.

____

________________________________

7i p

W e use________ copies o f____________________________
at the present time.

Farm Business Council Inc., P.O .Box F, Urbana, III. 61801
N o r t h w e s t e r n B a n k e r , O c t o b e r , 1966

106

N ebraska N ew s

THE SIX MEIST who comprise The Omaha National’s executive management team are pictured as they appeared on a panel together.
Left to right, they are: Thomas C, Quinlan, exec, v.p., estate and trust; John M. Shonsey, exec, v.p., marketing; Morris F, Miller,
pres.; James H. Moore, sr .v.p., asset mgmt.; E. Stanton Miller II, sr. v.p., administrative; Howard M. Johnson, sr. v.p., operating.

Estate and Trust
Thomas C. Quinlan, executive vice

president, estate and trust division of
The Omaha National, described the
work of his trust department. Trust
work, he said, is the fastest growing
segment of the industry, and the fast
est growing part of this is the life
insurance trust. He said the trust de
partment’s work is tied directly into
the bank’s computer system, thus pro
viding a great advantage in updating
each account daily and in furnishing
customers and courts with up-to-date
statements.
Mr. Quinlan noted the need to main
tain good relations with the legal, ac
counting and life insurance profes
sions. He reviewed the importance
also of the investment department
function in the estate and trust divi
sion.
Asset Management
James H. Moore, senior vice presi

dent, asset management division, said
the asset management committee at
ONB consists of the president, all de
partment heads and the five major
divisional heads. The bank has loans
in three general departments: (1) Ag
ricultural and c o m m e rcia l loans,
which are by far the largest. These
include local and outstate direct loans,
overlines, and this accounts for about
80 per cent of the funds available for
lending. (2) Real estate loans, which
cover construction financing, real es
tate term loans, home loans, and origi
nates and offers loans to the trust divi
sion. (3) Consumer credit, which in
cludes floor planning, etc.
The credit department operates un
der Mr. Moore’s supervision, as does
the securities department.
Administrative
E. Stanton Miller II, senior vice
president, administrative division, dis
cussed Omaha National’s new head
quarters building now under construc
tion across the street west from the
o r tFRASER
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present building. Color drawings by
the architect were displayed to the
audience for the first time and show
a block long building, several stories
high, exclusively for the bank. A
tower rising 29 stories above ground
level will house the building owner,
Woodmen of the World Society, and
other tenants. Omaha National will
have a 100-year lease, if all options are
exercised. The structure should be
complete for occupancy by 1969.
Operations
Howard M. Johnson, senior

vice
president, operating division, said ONB
is anticipating delivery of its newest
computer (an IBM 360) in December.
In addition to the large data proc
essing center maintained in the head
quarters building, the bank also oper
ates its Grand Island Computer Cen
ter, and will put the Scottsbluff Com
puter Center in operation next Janu
ary. This will carry the bank’s EDP
service across western Iowa and
across Nebraska into Wyoming and
Colorado.
President Miller spoke briefly at the
conclusion of the afternoon program,
thanking the officers of visiting banks
for being guests of The Omaha Na
tional for the day.
Conclusion

After a cocktail party at SheratonFontenelle Hotel, the group adjourned
to the Omaha Civic Auditorium two
blocks away for the delightful dinner
and entertainment. The latter fea
tured three p e r fo r m e r s from the
Lawrence Welk orchestra—Joann Cas
tle, the “honky-tonk” piano stylist;
Jim Roberts, tenor vocalist, and Jack
Imel, dancer and marimba artist.
The dinner and show provided an
excellent climax to a stimulating Cen
tennial Conclave.—End.

Chicago Credit Card Plan
Three major Chicago banks have
launched a new credit card plan

known as the Compatible Midwest
Bank Card System.
Under the Compatible system, the
Continental Illinois National Bank &
Trust Company, the First National
Bank of Chicago, and the Harris Trust
& Savings Bank will all issue separate
cards.
Merchants are being solicited to
sign up with the Compatible system,
but their credit card billing account
will go to whichever bank gives them
the best rate.
The customer will get a card from
any of the three banks or, in some
cases, one of their correspondent
banks.
The customer can then use the card
to charge goods or services with any
merchant displaying the blue and gold
Midwest Compatible symbol.
He can also go into any bank par
ticipating in the system and borrow
up to $100 cash on his card.
The customer’s card will be em
bossed with his name and account
number, plus the special transit num
ber used by most banks for check
clearing.
Revenues will come primarily from
handling charges to the participating
merchants, based upon volume.
There will be some charge for mer
chants who join up after a certain
date, and annual charges for credit
card imprinters.
The card holder will pay his bal
ance, plus a service charge if he
doesn’t pay within a certain time after
the billing date. He will also pay in
terest at IV2 per cent a month, on
any $100 maximum cash advance loans
he makes on the card.

Revise AIB Text
The American Institute of Banking
has published a new edition of an old
standby in its textbook series. The
book is “Principles of Bank Opera
tions.”

107

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Trust your correspondent banking needs in California to the men from
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or assistance you need. They are knowledgeable executives as well as
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it large or small. They have at their disposal the combined information
of specialists in many departments and in more than 190 UCB offices
throughout the State.
Don't make a decision in California until you've talked to one of the
men from UCB. Just one call or wire will bring him to your desk. Let
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Federal Reserve Bank of St. Louis

u
1C 1
V_____

UNITED
CALIFORNIA
BANK

Capital Funds over $293,000,000
Resources over $3,440,000,000
Los Angeles Headquarters: 600 South Spring Street
San Francisco Headquarters: 405 Montgomery Street
Offices Border to Border Throughout California

The bank that does a little more for you
N o r t h w e s t e r n B a n k e r , O c t o b e r , 1966

108

While in Des Moines
visit our modern
banking facilities at
Sixth and Locust
ROBERT J . S T E R L IN G
President

H O M E R JE N S E N
Vice President

GORDON DODGE
Asst. Vice President

O . J A Y TO M SO N
Asst. Vice President

IOWA BANKERS CONVENTION
OCTOBER 16-19, 1966

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Federal Reserve Bank of St. Louis

W e look forward to seeing you again
at our same convention location

SUITE 528-529
HOTEL FORT DES MOINES
Member: Federal Reserve System
Member: Federal Deposit Insurance Corporation

109

Iowa Bankers Association

SOth Annual Convention
A t Hotel F ort Dos M o in es
O ctober 1 0 - 1 0
R. B. KERRY

SUNDAY, OCTOBER 16
Hotel Fort Des Moines
2:00 p.m.
8:15 p.in.

Registration Begins—Mezzanine Floor.
..................................................................................E(1 H. Spetman, Jr.

President, Iowa Bankers Association and
President, Council Bluffs Savings Bank, Council Bluffs
8:20 p.m.

A Woman, Still.............................................................Rene Carpenter

9:00 p.m.

Musical Program.......................... The Fort Dodge Civic Glee Club

Columnist, Wife of Astronaut Scott Carpenter, Houston, Tex.
Fort Dodge
FRANK W ARNER

7:45 a.m.
8:15 a.in.

MONDAY, OCTOBER 17
18th Annual Agricultural Breakfast Conference.
Meeting Called to Order...................................... Thomas H. Huston

C. E. W A L K E R

Chairman, IBA Agricultural Committee; Executive
Vice President, Columbus Junction State Bank
Columbus Junction
9:00 a.m.

Futures Markets and Farm Finance............. Ernest J. Baughman

Vice President and Director of Research
Federal Reserve Bank of Chicago
9:30 a.in.

The Impact of a Changing Agriculture........... Charles A. Swisher

General Sales Manager, Walnut Grove Products
Atlantic, Iowa
E. T. B A U G H M A N

10:00 a.in.

Remarks...................................................................... Miss Diane Botts

P. P. M U I R H E A D

Iowa State University, Ames
10:10 a.in.

Remarks............... .....................................................Thomas R. Smith

Vice Chairman, IBA Agricultural Committee
President, First National Bank, Perry
10:20 a.m.

What’s Ahead for Iowa’s Agriculture....... Dr. Jonathan S. Tobey

Technical Director for Agriculture
The Chase Manhattan Bank, N.A., New York
10:50 a.in.

Improving the Image of Pork...................................... Roy B. Iveppy

1:15 p.m.

Convention Called to Order............. President Ed H. Spetman, Jr.
Remarks of the Vice President-Treasurer............... J. A. Fordyce

Commercial Hog Producer and Exhibitor, Davenport, Iowa
Vice President, Mount Vernon Bank & Trust Company
Mount Vernon
1:25 p.m.
1:45 p.m.

Annual Address of the President.....................President Spetman
Presentation to the President of the Ivory Gavel.........................
..................................................................................... Lewis W. Ross

1:50 p.m.

The Washington Financial Scene................. Dr. Charls E. Walker

C. E. S H E W A L T E R

Chairman, Council Bluffs Savings Bank, Council Bluffs
Executive Vice President and Executive Manager
The American Bankers Association, New York
2:30 p.m.

America’s New Team............................................Peter P. Muirhead

Associate Commissioner and Director, Bureau of
Higher Education, U. S. Department of Health,
Education and Welfare, Washington, D. C.

T. R. S M IT H

3:10 p.m.

C. A. SC HAFFER

Top Management’s Responsibility for Control............................
............................................................................ Charles E. Shewalter

Senior Vice President and Controller
Commerce Trust Company, Kansas City, Mo.
3:40 p.m.
4:30 p.m.
8:00 p.m.

J. T O B E Y

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Federal Reserve Bank of St. Louis

Session Adjourned.
Cancus of Iowa ABA Members
Dancing and Buffet Supper at Val-Air Ballroom.........................
...........................................................Woody Herman and His Band

(Bus transportation from Hotel Fort Des Moines and Return)
( Continued on Following Page)

R. W . CAR EY

N o rth w e ste rn Banker, O c t o b e r ,

1966

lowa News

DR. E. J. M e G R A T H

9:15 a.m.

. ROSENBAUM

C. N. D IC KSO N

J. W I L S O N

cilmen, Present Officers and 50-Year Iowa
Bankers—Hotel Fort Des Moines
The Development and Role of Bank
Readers...........................Clarence N. Dickson

TUESDAY, OCTOBER 18
Convention Called to Order............................
.........................President Ed H. Spetman, Jr.
Meeting of Iowa ABA Members. .E. C. Bartik

A.I.B. Award Winning Speech;
Assistant Cashier, Central National
Bank & Trust Company, Des Moines

ABA Vice President for Iowa and
President, Corwith State Bank, Corwith
10:00 a.m.

10:30 a.m.

Credit Bureaus’ Response to Challenge........
............................................Charles A. Schaffer

8:20 p.m.

President, Associated Credit Bureau of
America, Inc., Mason City, Iowa

9:30 a.m.

Revocable Trusts................. Richard W. Carey

Trust Officer, Estate Planning Division
lowa-Des Moines National Bank, Des Moines
11:00 a.m.

11:40 a.m.
1:15 p.m.
1:20 p.m.

9:40 a.m.

Session Adjourned.
Convention Called to Order...........................
.........................President Ed H. Spetman, Jr.
The Economic Outlook for 1967.....................
..........................................Arthur Rosenbaum

10:00 a.m.

Two Words from Washington— What Next?
....................................................... Jack Wilson

The Outlook for Smaller Banks in an In
terest-Sensitive Economy ....Jam es Eckert

Chief, Banking Section, Division of
Research and Statistics, Federal
Reserve Board, Washington, D. C.
3:20 p.m.

10:10 a.m.
11:00 a.m.

“Frank Warner Day’’—Testimonials.
Sports and Banking— 1910 to 1966.................
............................ Charles I). “Casey” Stengel

Former Major League Baseball Star Player
and Manager; Vice President and Director
Valley National Bank, Glendale, Calif.
11:40 a.m.

Adjournment of the 80th Annual Convention.
PROGRAM FOR THE UADIES
Tuesday, October 28
(Des Moines Women’s Club Auditorium)
1:45 p.m. Presiding................... Mrs. Ed H. Spetman, Jr.

Council Bluffs
2:00 p.m.

Filing Problems Under the Uniform
Commercial Code................. Keith D. Schulz

Deputy Secretary of State
State of Iowa, Des Moines
3:40 p.m.
6:00 p.m.

A Tribute to Frank Warner. . .Clifford DePuy

Chairman, The Northwestern Banker
Des Moines

Economist, Chicago
2:00 p.m.

Flower Drum Song................... KRNT Theater
WEDNESDAY, OCTOBER 19
Convention Called to Order............................
.........................President Ed H. Spetman, Jr.
Election of Officers.
50th Anniversary Recognition. . J. F. Kennedy

Chairman, “Frank Warner Day” Program
Committee; Former IBA President;
President, First National Bank, New Hampton

Some Things Citizens Should Know...........
About Higher Education............................
........................................ .Dr. Earl J. McGrath

Chancellor, Eisenhower College
Seneca Falls, New York

C. DePU Y

Session Adjourned.
Dinner for Past Presidents, Former Coun-

Special Variety Show—
The Four Step Brothers — Internationally
Known Command Performance Team.
Reneaux— “Sophisticated Magic and Illusion.”
The Farrell Sisters— “Singing and Dancing.”
The Four Rads— “By Far the Most Truly
Musical Group Singing Today” — Mitch
Miller.

CHARLES D. “CASEY” STENGEL
N ofor
r t hFRASER
w e s t e r n B a n k e r , O c t o b e r , 1966
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THE FOUR LADS

THE FARRELL SISTERS

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Federal Reserve Bank of St. Louis

Ill

NEW ISSUE

August 15, 1966

EXECUTIVE DATA
SYSTEMS, INC.
170,000 Shares Common Stock
Offering Price $5.00 Per Share

E x ecu tiv e D ata S ystem s, In c ., p ro p o ses to en gage in the business o f fu r
n ish in g c o m p u te r and data p ro ce ssin g services to h an k s, h osp ita ls and
o th e r p ro sp ectiv e c u sto m ers fr o m its offices in C edar R a p id s, Iow a.
Such
services will in clu d e the use o f a la rg e, cen trally located c o m p u te r facility
e m p lo y in g an o n lin e real t im e /t im e sh arin g c o m p u te r as well as the ad a p
tation o f stan d ard an d cu sto m designetl system s and p ro g ra m s to needs
o f cu sto m ers.
T h is o ffe r in g is m a d e o n ly b y the P ro sp e ctu s. C op ies o f the P ro sp ectu s
m ay he o b ta in ed fr o m the u n d e rsig n e d in states w h ere th e u n d ersig n ed
m ay la w fu lly o ffer these secu rities. T h e se securities will he offered by
G row th Capital C o rp . o n ly in the State o f Iowa.

CORNLAND, INC.

G R O W TH CAPITAL CORP.

3 8 3 9 M e r le H ay R oad
Des M o in e s , Iow a

M e r le H a y M a rt B u ild in g
D es M o in e s , Iow a

Phone 5 1 5 -2 7 6 -1 5 9 7

Phone 5 1 5 -2 7 6 -1 5 9 8

EXECUTIVE D ATA SYSTEMS, INC.
Suite 1 1 2 , E x ecu tiv e P laza
C edar R a p id s, Iow a
P hone 3 1 9 -3 6 5 -9 4 3 3

Please send me a copy of the prospectus describing the
Common Stock of EXECUTIVE DATA SYSTEMS, INC.

NWB

Name___________________________________________
Address________________________________
City.______________________________ State

This announcement is neither an offer to sell nor a
solicitation of an offer to buy any of these securities.
N orthw estern Banker, O cto b er,

1966

112

Io w a N e w s

M ore
tin te r ío in m en t
fo r
to in i th in k ers
t on ren t ion
MRS. RENE CARPENTER

RENEAUX — MASTER MAGICIAN

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o r t FRASER
h w e s t e r n B a n k e r , O c t o b e r , 1966
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Federal Reserve Bank of St. Louis

THE FOUR STEP BROTHERS — PROMINENT TV ENTERTAINERS

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113

W elcom e to D es M oin es and
the co n v e n tio n . A n d w h ile
you 're here y o u 'll he m o st
w elcom e to v isit our new
R egency Office on Seventeenth
from Grand to Locust.
Banking

hours

t he

R egency Office are ö :3 G to
5 :3 G M o n d a y through T hurs
day and until 6 :0 0 on Friday.
S a tu r d a y s w ere open from
9 :0 0 to noon.

I h e R e g e n c y O f f ic e

VALLEY BANK and
TRUST COMPANY
on S E V E N T E E N T H

fro m

GRAND

to L O C U S T

Member Federal Deposit Insurance Corporation
Inorili w e ste rn

B a n k e r , O c t o b e r , 1966

114

Iowa News

A Salute to Frank Warner
O n H i* ¿»Ofli A n n iv e rsa ry As
S e cre ta ry . Io w a B a n k e rs A ssociai Ion
of the 80th annual
HIGHLIGHT
convention of the Iowa Bankers
Association, to be held in Des Moines,
October 16-19, will be a special tribute
to Frank Warner, who recently com
pleted 50 years as Association secre
tary.
Long known as “ Mr. Iowa Banker,”
Mr. Warner voluntarily submitted his
resignation effective August 31. He
is continuing in the post until a suc
cessor is named at the convention. At
the time of his resignation, a special
dinner was planned and held for him
in Des Moines by past president of the
Association and the group chairmen
and secretaries. A picture of Mr.
Warner with 22 of the 24 living past
presidents, taken at the party, appears
in this issue.
Ten years ago, delegates to the 70th
annual convention marked Mr. Warn
ers’ 40th year by officially naming
him “Mr. Iowa Banker” and present
ing him with the bronze portrait
plaque, shown in this issue, designed
by Gilroy Roberts, chief engraver for
the Philadelphia Mint. The plaque
occupies a prominent place in the of
fice of the IBA in Des Moines.

Mr. Warner has been widely known
among generations of Iowa bankers
and members of the Iowa legislature
where he always has kept a close
watch on banking laws.
Although he d iscla im s personal
credit for “ Senate File 111,” it is gen
erally agreed throughout Iowa that
Mr. Warner is the father of the law,
which enabled many banks to keep
their doors open during the depres
sion. Senate File 111 gave debtors to
banks the needed time to repay their
obligations until economic values were
restored.
During the 1920’s, when there were
many bank robberies in Iowa, Mr.
Warner originated “vigilante” commit
tees in each of the state’s 99 counties,
deputized bankers and local citizens
that aided law enforcement officials.
Today, Scott county is the only county
in the state that continues the vigi
lante effort.
Association headquarters offered a
full line of ammunition and shotguns
for its members and their vigilante
groups.
Mr. Warner also organized the first
statewide radio network, and the sta

MR. IOWA BANKER was the special title given to Frank Warner at the annual con
vention in the fall of 1956. At that time, Mr. Warner was honored for completion of
40 years with the association.
N ofor
r t hFRASER
w e s t e r n B a n k e r , O c t o b e r , 1966
Digitized
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Federal Reserve Bank of St. Louis

SILVER MINUTE-MAK statuette was
presented to Frank Warner in May this
year by the U. S. Treasury Dept, in recog
nition for serving 25 years as a volunteer
for Iowa’s savings bond effort. Shown with
Mr. Warner are Marvin M. Schmidt, right,
volunteer state chmn., Des Moines, and
Mrs. Ann Meckler, New York, Mrs. U. S.
Savings Bonds.

tion was in the office of the Iowa
Bankers Association, so as to alert
police whenever a bank robbery oc
curred. The network was subsequent
ly taken over by the state police.
Because Mr. Warner has always
been a staunch friend of the independ
ent banking system, he was instru
mental in the adoption of a law back
in 1931 to permit banks to establish
offices in non-bank communities. The
law provides that the office must be
closed if a new bank is chartered in
the community. It therefore protects
the independent banks and provides
necessary banking services for areas
without banking facilities.
Recognizing the additional need for
banking services in the suburbs of the
larger communities in the state, Mr.
Warner once again used his influence
in assisting the Iowa legislature in
adopting a parking lot office bill in
1955. Most bankers agree that this
has done much to continue the inde
pendent banking movement in Iowa.
One of Mr. Warner’s key projects
over the years has been the develop
ment of the idea of outside farm rep
resentatives for Iowa banks. Realiz
ing that much of the state’s economy
evolves around agriculture, he has
cooperated fully in the development
of the annual Agricultural Credit
School at Iowa State University in
Ames. As a result, a good majority
of bankers in the state received some

1L5

THE E ISN’T
ATHING
THE SECURITY
NATIONAL BANK
CAN’T OB
WON’T
1

0 1

W II

5 i f lb 1 I I

CORIESFONBENIS
(Ask Tom Horn, John Dieiendort or Gene Hagen!)
They’re always available, and anxious to prove how Security National can bet
ter serve your particular needs. (Look for them in Des Moines at the IBA Con
vention). Tom, John and Gene aren’t the only ones you can talk to about the
famous “Security Service”. Ask anyone. First, ask a Security National custom
er. You’ll find that present Security customers make the best testimonials. If
you wish, you can call Ted Thompson. He’s the president of Security National,
but he always has time for customers! Find out for yourself that there isn’t a
thing the Security National Bank can’t and won’t do for their correspondents.

66W here Customers Send Their Friends

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•

SIO U X CITY, IO W A

MEMBER F.D .I.C

&
N o r t h w e s t e r n B a n ke r, O c t o b e r f 1966

116

Io w a

New s

i s *v

I f rank ¡ R a n t e r
<m hi* 5v'th r'itin itvri»4 ty

o f th«r

?*03 Hankers AAsnnafitm

over much of his 50 years is still in the IBA
ROLL-TOP DESK used by Frank Warner <
office. It was originally acquired in 1910.

of their first agricultural credit train
ing at this school.
Perhaps one of the most important
tributes to Frank Warner’s endless
devotion to duty over the past 50
years is that every Iowa hank is a
member of the Iowa Bankers Asso
ciation. This fact is most apparent at
convention time each year. Iowa has
long boasted the largest attendance
convention in the nation. For the
past two years, the annual meeting
has drawn more than 5,000 registrants.
The 79th annual meeting, held in Oc
tober, 1965, had an official registra
tion of 5,241.
Mr. Warner is a native of Waterloo.
After graduating from the University
of Iowa in 1912, he taught school for
a year. Later, he joined the old Leav
itt and Johnson National Bank of
Waterloo. He became general man
ager and assistant to the bank presi
dent before taking the appointment

as secretary of the Iowa Bankers As
sociation on August 9, 1916.
One of his most recent and cher
ished honors is a special testimonial
plaque presented to him by the trus
tees of the Graduate School of Bank
ing at the University of Wisconsin,
Madison, in late August at the Madi
son Club in Madison, Wis. H. V.
Prochnow, director of the school and
president of the First National Bank
of Chicago, and Dean Elwell of the
University of Wisconsin, were pres
ent for the occasion.
Mr. Warner was president of the
Central States Conference (made up
the executive officers of the 16 north
central state bankers associations)
when the idea was worked out for
the Central States Conference to spon
sor a School of Banking at the Uni
versity of Wisconsin. All of the first
Bulletins on the School were prepared
and mailed by the Iowa Bankers Asso
ciation under Mr. Warner’s direction.

RECOGNITION of his 50tli anniversary
as secretary of the Iowa Bankers Associa
tion is recorded on this plaque presented
to Frank Warner by the 24 living past
presidents of Iowa Bankers Association.

Olite
,

Neutral Elates Conference

^tatc i\inker> Associations

'-Does Jicrebv J4e>nor
^ anS
vxtcpd Coiuxraudattcms

Prank jjjarner
fur SOyrnr» wntivsn^Wsu-mkmho
Welfare of the ¡«1« Axnkw.-U-vxiaH«!
au.4tarhi*main- contribution* tothesue
ciis oi the Ventral St.tscr lioniêvenecamt
to The Vmsdtt.ue Sekeoi oî ïvmlùm\a.t tiw
Umx’tfvsilvaf VS«otum
K

THIS PLAQUE was presented to Frank
Warner several weeks ago by the Central
States Conference for his part in helping
set up the Graduate School of Banking at
the University of Wisconsin.

W e are pleased to join in the salute to Mr. Frank Warner in
appreciation o f his years of dedication and service to banking

in Iowa

FIRST

FEDERAL

STATE

BANK

Second to IS'one in Su b u rb a n B a n kin g
University Avenue at 24th Street
Office at Clive, Iowa

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o r tFRASER
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Federal Reserve Bank of St. Louis

•

Des Moines, Iowa

Phone 25 5-3121
Member F.D.I.C.

A**

We’ll see you at the ABA Convention

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Federal Reserve Bank of St. Louis

(One way or another.)

A m e r ic a n

N a tio n a l B a n k

AND TRUST COMPANY OF CHICAGO/LASALLE AT WASHINGTON
FRANKLIN 2-9200

60690

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

118

fou m P a s t ¡^ resid en ts Honor F ra n k W a r n e r

20 PAST PRESIDENTS of the Iowa Bankers Association and the incumbent president honored Prank Warner with a special plaque
at a recent dinner on the occasion of his 50th anniversary as secretary of the IBA. Pictured, left to right, are: Seated— A. T. Donhowe (1941-42), dir., Central Natl. B&T, Des Moines; Hoyt R. Young (1940-41), retired, Wichita Palls, Tex,; Frank C .Welch (193435), chmn., Peoples B&T, Cedar Rapids; Mr. Warner; Robert W. Turner (1936-37)), dir., 1st Natl.. Council Bluffs; W. Harold Brenton (1946-47), chmn., Brenton Banks, Des Moines; E. A. Ebersole (1938-39), v.p. & cash., State Central Savings, Keokuk; and
Joe H. Gronstal (1956-57), pres., Carroll County State, Carroll. Standing—Roy A. Sweet (1951-52), pres., Story County State, Story
City; Charles H. Walcott (1961-62), v.p., 1st Natl., Sioux City; E. L. Ballou (1964-65), pres., Security T&S, Storm Lake; Merten J.
Klaus (1957-58), pres., 1st. Security B&T, Charles City; Charles H. Walsh (1963-64), pres., Farmers & Merchants B&T, Burlington;
V. W. Johnson (1943-44), retired, Cedar Falls; Ed H. Spetman, Jr. (current pres. 1965-66); pres., Council Bluffs Savings Bank; R. R,
Schroeder (1959-60), pres., Iowa Co. Savings, Marengo; J. H. Pullman (1950-51), chmn., Fremont Co. Savings, Sidney; Harry W.
Sehaller (1948-49), pres., Citizens 1st Natl., Storm Lake; Herbert L. Ollenburg (1962-63), pres., Hancock Co. Natl., Garner; L. A.
Holland (1953-54), pres., Washington State Bank, Washington; Harry S. Lekwa (1952-53), pres., Ackley State, Ackley, and John
B. Keeline (1958-59), pres., Central T&S, Cherokee.

Candidate for Vice President
1 9 6 6 — OUR 75th YEAR

Our Thanks and Best W ishes to Frank Warner

THE SAINT ANSGAR CITIZENS STATE BANK
O p e n F rid ay E v en in g s
F ree P erso n a lized Cheeks
4 1/2 % on Certificates o f D ep osit

5 8 Years o f Complete Friendly Banking Service

SECURITY TRUST
STORM

SAVINGS RANK

L A K E , IO W A

RESOURCES OVER $ 6 ,500 ,000.00
Congratulations to Frank Warner
for 50 years9 service with I. B. A.
N o r t h w e s t e r n B a n k e r , O c t o b e r , 1966

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Federal Reserve Bank of St. Louis

W. L. “Bill” Baggs, vice president
and cashier of the Hancock County
National Bank, Garner, is a candidate
for the office of vice president and
treasurer of the Iowa Bankers Asso
ciation. The elect i o n w i l l take
place on the con
vention floor on
Wednesday, Octo
ber 19, during the
80th annual Iowa
Bankers Conven
tion.
Mr. Baggs has
been a ctiv e in
Iowa banking for
the past 35 years,
serving for the past 32 years with the
Garner bank.
He is a graduate of the Rutgers
Graduate School of Banking, and he
has served the various offices of the
Hancock County Bankers Association.
He has also served as chairman of
the Iowa Bankers Agricultural Com
mittee.

119

OUR BANK

IS SPECIAL!

...asl< us about it at the
Iowa State Convention
Our customers tell us Drovers is special.

FRED C U M M IN G S
Vice President
Correspondent Banks

For many reasons. One is that Drovers is the
only bank at the great Chicago Stock Yards.
Another is Drovers’ wide range of services. You can
enjoy our big-bank advantages and our friendly,
personal service.
You will especially appreciate the 264 pairs
of “ helping hands” at Drovers-offering skilled
judgement on correspondent banking, instalment
lending, savings, investments and special services.
Drovers is special, too, because of “ Immediate
Credit” service which speeds your customers’
livestock sales receipts to your bank without delay
We, too, think Drovers is special. Ask us about our
full range of special banking services at the
Iowa State Convention.

B ER NIE MILLER
Assistant Vice President
Correspondent Banks

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Federal Reserve Bank of St. Louis

"World of Services from Chicago’s South Side"

Drovers National Bank
U N I O N S T O C K Y A R D S • C H I C A G O 60609
MEMBER F.D.I.C.

P hone: YArds 7-7000
H o r t h w e & t e r n B a n k e r , O c t o b e r , 1966

120

Iow a N ew s

Tiro

i pri»sidontialCandidatos

previously, Dale
A SC.ANNOUNCED
Smith, vice president of the
Central National Bank and Trust Com
pany, Des Moines, and Oliver A. Han
sen, president of the Liberty Trust
and Savings Bank, Durant, have an
nounced their candidacy for the office
of president of the Iowa Bankers As
sociation. The election will be held
during the 80th annual convention in
Des Moines, October 16-19.
Mr. Smith was a candidate for the
IBA presidency at the 79th annual
convention held last October, but with
drew his nomination at that time in
favor of Ed H. Spetman, Jr., presi
dent of the Council Bluffs Savings
Bank, who was then elected president
for the 1965-66 year. Mr. Smith’s name
was then resubmitted on the floor of
the convention as a candidate for the
presidency for election at the 80th an
nual convention this year.
Mr. Smith started employment at

IO W A S

L E A D IN G E L E C T R IC A L
S IN C E 1913

CEN TER

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IOW A BANKERS
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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 in
June, 1946, he was elected an assistant
cashier. Later, he was advanced to

S M IT H

O. H. H A N S E N

assistant vice president and to vice
president. Since 1962, he has headed
the bank’s correspondent bank divi
sion.
Mr. Smith has served on various
committees of the Iowa Bankers Asso
ciation. He was active in AIB work
for over 10 years, serving as president
of the Des Moines chapter in 1938 and
as associate councilman for Iowa in
1939, 1940, and 1941. He is a graduate
of the Graduate School of Banking at
the University of Wisconsin, and for
the past 10 years has been on the
school’s administrative staff.
Mr. Hansen’s candidacy was an
nounced in May of this year, after re
ceiving the endorsement of the Cedar
County Bankers Association. He has
served as chairman of Group 8 of the
Iowa Bankers Association.
Mr. Hansen entered banking in
June, 1946, following his discharge
from the U. S. Army, where he served
as a first lieutenant and supply officer
for the 40th Infantry Division. Durig the Korean war, he served as food
supervisor for the 24th Corps.

At the Liberty Trust and Savings
Bank, he has served as cashier, exec
utive vice president, and now, presi
dent. He graduated from Iowa State
University, Ames, in 1942, with a
Bachelor of Science Degree in Animal
Science. In addition to his banking
duties, he is active in family farming
interests.
During recent years, Mr. Hansen
has served as a member of the Durant
school board, member of the Bishop’s
committee, St. Paul’s E p i s c o p a l
Church; director and past president,
Eastern Iowa Angus Breeders Associa
tion; member, Iowa Bankers Commit
tee for Iowa College Foundation; di
rector, Farmers Savings Bank, West
Union (Clermont); guest lecturer at
the Agricultural Credit School, Ames;
president, Cedar County Bankers As
sociation, and secretary and chairman
of Group 8.

Offers New UCC Service
As changes occur in banking, new
services are required by Iowa banks.
Such is the case with the inauguration
in July of the Uniform Commercial
Code.
Under the Code, most security in
struments are filed with the Secretary
of State at the State House in Des
Moines. To aid Iowa bankers in the
searching of these records and to file
financing statements on their behalf,
Iowa Search, Inc., has been formed in
Des Moines.
Located just a block from the State
House, Iowa Search offers a service
which can best be compared with the
service an abstract company renders
in connection with real estate sales.
G.
M. Strand is president of the new
company. He was a special agent for
the State Bureau of Criminal Investi
gation for over 20 years.
W. N. Bump, Des Moines lawyer
and solicitor general in the Iowa At
torney General’s office from 1961 to
1965, is secretary-treasurer of the firm.

Tax Exem pt
E x p e r ie n c e d
lig h tin g
c o n s u lt
a n ts
w ill
be
happy
to
a s s is t
in y o u r s e le c t io n
of
lig h tin g
f ix
tu re s and
la m p s
o f q u a l i t y , s t y le
and
d is t in c t i o n .

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OFFICES
DAVENPORT— DAVENPORT BANK BLDG.
Waterloo— 623 Sycamore S t
Pella— 1215 Main Street
Ottumwa— Hotel Ottumwa
Dubuque— 450 Fischer Bldg.
Muscatine—2008 Mulberry Ave.
Sac City— 611 Oak Street

121

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1961

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“ A t Y o u r S e r v ic e ” a t th e

See You at the
80th Annual Iowa
Bankers Convention

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Federal Reserve Bank of St. Louis

1962

1963

1964

1965

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N o r t h w e s t e r n B a n k e r , O c t o b e r , 1966

122

Iowa

News

I on W ill See Them at the

HOtli intra

HankersI'oneention

and representatives of
OFFICERS
larger banks from major bank
ing centers in the midwest and across
the nation, as well as representatives
from industries that serve banks will
be in attendance at the 80th annual
convention of the Iowa Bankers Asso
ciation, October 16-19, at Hotel Fort
Des Moines.
The following have reported to the
N orthwestern B anker by mid-Septem
ber their intention to attend the Iowa
convention:
Cedar Rapids
National Bank:

S. E.
Coquillette, chairman, executive com
mittee; John T. Hamilton II, chair
man of the board; James E. Coquil
lette president; F. Forbes Olberg, ex
ecutive vice president; Russell I. Hess,
L. W. Broulik, John E. Mangold, Ever
ett C. Pratt, James E. Van Dine, Rob
ert H. O’Meara and Robert J. Ryan,
Merchants

vice presidents; C. F. Peremsky, cash
ier; Peter Bailey, assistant cashier;
Eric M. Hender, representative, corre
spondent bank department.
Peoples Bank and Trust Company:

Ted J. Welch, president; Ervin F.
Stepanek, vice president and cashier;
Charles E. Krejci and J. Keith Noll,
vice presidents; John M. Sagers, vice
president and senior trust officer.
Chicago
American National Bank & Trust
Company: Allen P. Stults, president;

W. O. Kurtz and Steven S. Anderson,
vice presidents; W. B. Aldrich, assist
ant vice president; Robert O. Walcott,
assistant cashier; Geo. H. Spence, agri
cultural officer, and Charles C. Kuning,
consultant.
Central National Bank: Frank E.
Bauder, president; Robert E. Hamil
ton and Harold P. Johnston, senior
vice presidents; Howard H. Beermann,

Looking forward to seeing YOU
at the Iowa Bankers’ Association
Convention October 16-19.

Council Bluffs
Savings Bank
Council Bluffs’ Oldest, Largest and Only Locally Owned Full-Service Bank

FOUR CONVENIENT LOCATIONS
B r o a d w a y at P earl

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vice president; Charles Y. Thompson
and Raymond G. Ruge, second vice
presidents, and Gerald E. Leighton,
Robert J. Norris and Norbert J. Kash,
assistant cashiers.

-c

Continental Illinois National Bank:

Berford Brittain, Jr., senior vice presi
dent; Richard C. Rastetter, Arthur J.
Frey, Lindley Finch and Lawrence H.
Frowick, vice presidents; John M. Da
vis and Vincent M. Flynn, second vice
presidents; Sylvan L. Franklin, assist
ant cashier; Arthur L. Jackson, Jr.,
second vice president, and John G.
Wheelan of bond department.
Drovers National Bank: Leo R. Gru
ber, president; Fred D. Cummings,
vice president, and Bernard D. Miller,
assistant vice president.
First National Bank: Joseph C. Fen
ner and Nevin G. Bowser, vice presi
dents; Gerald E. Fitzgerald, assistant
vice president, and Raymond V. Dieball, assistant cashier.
Harris Trust and

Savings Bank:

Paul J. Miller and John A. Sivright,
vice presidents; Gilbert J. McEwen, as
sistant vice president; P. A. Mack,
agricultural loan officer; Stanley K.
Peirce, investment officer, and Richard
E. Illyes, representative.
LaSalle National Bank: Milton Darr,
president; Cyrus Kirk, Charles Lundfelt and Max Roy, vice presidents;
Sherman Peterson, assistant vice pres
ident, and Robert Pohl, director of in
dustrial development.
National Boulevard Bank: Henry
Fordtran, executive vice president;
Daniel Priske, assistant vice president,
and Kenneth Eaton, investment man
ager.
The

Northern

T ru st

Company:

Douglas R. Fuller, president; Robert
E. Hunt and E. Norman Staub, senior
vice presidents; Robert P. Kline, vice
president; Roland C. Roos, second vice
president; David D. Baer, assistant
cashier, and Stephen B. White, divi
sional assistant.
Clinton
First National Bank: Bruce Town

send, president, and Edgar H. Jorgen
sen, vice president.
Council Bluffs
Council Bluffs Savings Bank: L. W.

Ross, chairman of the board, and Ed
H. Spetman, Jr., president.

CITIZENS STATE BANK
P O S T V IL L E , IO W A

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Agriculture
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Industry

Dubuque
American Trust and Savings Bank:

N. J. Schrup and Christy F. Arm
strong, senior vice presidents; Leo F.
Kane, vice president, and Leo J.
Schlueter, assistant vice president.
Kansas City
City National Bank and Trust Com
pany: George W. Sherman, assistant

vice president.
Commerce Trust Company: Tom C.

Cannon,

vice

president;

Jarry

HERE IS A DEALTO SHAKE ON
Meeting-working with you
at the Iowa convention.
How about meeting you at the
iowa Convention . . . we’ll be
there. This is a once in a year
opportunity for us to visit with
so many of our banker friends
- all at one time. We mean to
make the most of it. We’il be
prepared to just socialize or
really set up shop and go to
work for you on any correspond
ent banking assignment you
might have. Let’s make it a
date — October 16-19 — Des
Moines, a deal we’ll shake on.

CORRESPONDENT BANK
DEPARTMENT
Charles H . W alcott, Vice P resident
R ichard C. T a y lo r, Vice P resident
B, M, B roderick , A ssistant Cashier

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

lirst Nationali n SBank
io u jc C it y

'■“‘■J

MEMBERS JEDiSAL DEPOSIT INSURANCE CORPORATION

Fourth a t Jackson

•

Fifth and Pierce

N o r t h w e s t e r n B a n k e r , O c t o b e r , 1966

124

Iowa

News

Parker and Don Anderson, assistant
cashiers.
Dos Angeles
Security-First National Bank: Rich

ard D. Frey, assistant cashier.
Milwaukee
Wisconsin National

First

William J.
manager.

Shenkenberg,

Bank:

assistant

Minneapolis
National Bank:

New York
Chase Manhattan Bank: John

S.
Hejinian, second vice president, and
Jonathan S. Tobey, technical directoragriculture.
Chemical Bank New York Trust
Company: John J. Irish, assistant vice
president.
First National City Bank: Robert
W. Thom, assistant vice president, and
Robert C. Paradise, vice president.
Irving Trust Company: Donald C.
Jackson, vice president.

pany: Joseph Snyder, assistant vice
president.
Marine Midland Grace Trust Com
pany of New York: Clyde R. Claus,

assistant vice president.
Morgan Guaranty Trust Company:

R. Leigh Ardrey, Jr., assistant treas
urer.
Omaha
First National Bank:

Congratulations and Best Wishes

F. Phillips
Giltner, executive vice president; Don
R. Ostrand, Ralph E. Peterson and
Ernie Tanner, vice presidents; Merv
Aegerter and G. Robert Brown, assist
ant vice presidents, and Herman Ja
cobs, computer service.
Omaha National Bank: John M.
Shonsey, executive vice president; H.
H. Echtermeyer, senior vice president;
David R. Johnson and Fred Douglas,
vice presidents; Del Olson and John
T. Marcell, correspondent bank offi
cers.

South Omaha Stockyards National
Bank: D. J. Murphy, president; C. W.

George S.
Henry, vice president; Richard O.
Weyrauch, assistant vice president,
and Pat R. Lavin, assistant cashier.
Marquette National Bank: R. W.
(Bill) Crouley, senior vice president,
and Stewart Stotesbery, correspond
ent bank officer.
First

Northwestern National Bank: Rob
ert G. Ziemer, vice president, and Paul
E. Koch, assistant cashier.

Manufacturers Hanover Trust Com

FRANK WARNER
Fifty Years of Service to Iowa Bankers

Means, senior vice president; F. J.
Sibert, vice president, and John Far
rell, assistant cashier.
United States National Bank: E. W.
Lyman, president; Wayne M. Thorndyke, vice president; Jay F. Bordewick, Harold W. Nielsen and James
C. Lyle, assistant vice presidents.
Ottumwa
Union Bank and Trust Company:

Max von Schrader, president; J. C.
B la c kf o rd , se n io r vice president;
Frank M. Pollard, senior vice presi
dent and cashier, and Max von Schra
der, Jr., vice president.

mon

T rust C o m pan y/

f . d . i. c . /

ttumwa,

Io w a

M AX

M . P O L L A R D . Sr. V ic e P r e s . &

C ash .

V ic e P r e s id e n ts
VON SC H R A D E R . JR .
B A X T E R R.
R O B E R T J. L A U G H R IG E , A s s t. V ic e P res.

S M IT H

T r u st D ep a rtm e n t
R IC H A R D

RONALD

M . A C K L E Y , V i c e P r e s . & T r u s t O ffic e r
A s s i s t a n t T r u s t O ffic e r s
L. H A N S E N
OPAL

TYLER

P e rso n a l L o a n D e p a rtm e n t
L E O N A R D A . D A V ID S O N , V ic e P r e s. &

JO H N R , R U K G A B E R , F arm

M gr.

S e rv ic e D ir e c to r

Serving the
C O R R E S P O N D E N T and T R U S T N E E D S
Of Southern Iowa Since 1871
Member oi Federal Deposit Insurance Corporation
N ofor
r t hFRASER
w e s t e r n B a n k e r , O c t o b e r , 1966
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

bert Tootle, senior vice president, and
Donald Folks, vice president.
St. Louis
First National Bank:

M A X V O N S C H R A D E R , P r e s id e n t
.J. S . B L A C K F O R D , S r . V i c e P r e s .
FRANK

St. Joseph
The American National Bank: Gil

Member of Federal Reserve System

Leonard J.
Schrewe, vice president, and H. Dun
can Edmiston, representative.
Mercantile Trust Company: John
H. Obermann, vice president, and
James J. Reedy, assistant vice presi
dent.
Sioux City
First National Bank: Chas. H. Wal

cott and Richard C. Taylor, vice presi
dents, and B. M. (Mike) Broderick,
Jr., assistant cashier.
Live Stock National Bank: Stanley
W. Evans, first vice president; John
S. Haver, vice president, and Malcolm
H. Erickson, cashier.
Security National Bank: Thomas C.
Horn, senior vice president; John A.
Diefendorf, vice president, and R. E.
Hagen, assistant cashier.
Toy National Bank: J. William Van
Dyke, chairman of the board; L. H.
Olson and B. L. Poulson, vice presi
dents, and C. E. Aronson, assistant
vice president.

125

remittance our Bond
Department is just a
little bit better

Io w

We'll be glad to handle the detail work and take responsi
bility for safeguarding stocks and bonds. But that's only
the beginning . . .
We'll give advance notice of maturity dates of bonds
and similar obligations, and notify you when securities
become due by call.
We'll provide a list of securities held, as well as current
market quotations.
We'll accept open orders to buy and sell Government
and other securities at given prices as the market permits.
And we can do all of these things just a little bit better
because our methods and equipment are completely
up-to-date.

-D e s M o i n e s

Sixth and Walnut, Des Moines 4 • CHerry 3-1191 • Member Federal Deposit Insurance Corporation

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

"Yes . . . we’re here to help you get what you want." Bob Wissler,
Vice President; Alan Braga, Assistant Cashier; John Hunt, Assistant
Cashier; John Johnson, Assistant Vice President.
N o r t h w e s t e r n B a n k e r , O c t o b e r , 1966

126

Iowa News
South St. Joseph

H. H.
Broadhead, Jr., vice president, and
Arthur M. McClaskey, assistant vice
president-agriculture.
First

Stock

Yards

Bank:

Toronto, Canada
Canadian Imperial Bank of Com
merce: Ian F. Messer, special repre

sentative.
Waterloo
National Bank of Waterloo: R. L.

Kilgore, president; Don L. Wenthe,
first vice president and cashier; H. F.
Hoffer and R. C. Mexdorf, vice presi
dents, and Wm. J. Rickert, assistant
vice president.
Waterloo Savings Bank: Fred Koch,
senior vice president and trust officer;
Robert Cooper, Sr., senior vice presi
dent; Gerald Curran, cashier, and Wil
lis Vollenweider, assistant vice presi
dent.

N o r tfor
h wFRASER
e s t e r n B a n k e r , O c t o b e r , 1966
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Bank Equipment and Other Firms
All American Life and Casualty
Company: Edward L. Goehring, gen

Klein and William H. Osier, sales en
gineers.

Doane Agricultural Services, Inc.:

eral agent; Jim Fredericksen.

George F. Cronan, publication divi
American National Insurance Com sion.
pany: C. A. Anderson, field executive.
Eastman Kodak Company: Harry
Bank Building & Equipment Corpo Van Sandt, branch sales manager;
ration: Robert Morrison, consultant.
Mike Penisten, Scott Unger, Don
Bankers Service Corporation: Henry
Frankland and Don Keller, sales and
H. Byers, Richard C. Newlin and My systems representatives.
ron E. Karsten.
Executive Data Systems, Inc.: Mel
Central States Health & Life Com vin D. Rittger, president and director;
pany: Warren H. Kerndt, vice presi Philip S. Justice, vice president and
dent; W. William Hoffman, regional director; Carl R. Zajas, treasurer and
manager; Robert Puff, Jack McKinnon director.
and Richard Brusig, branch managers.
Farm Business Council: R. G. Dil
F. E. Davenport and Company:
lingham, vice president.
Charles R. Allen, product sales man
Reginald Figge Associates: Reginald
ager, and Harold Crowell, representa
Figge, president.
tive.
Guardsman Life Insurance Compa
Deluxe Check Printers: Tom Meyer,
St. Paul, Minn.; Jack Rolston, Storm ny: W. E. “Bill” Littrell and John
Lake, Iowa, and Clyde McEntire, Mar Pappajohn.
shalltown, Iowa.
Hawkeye Security Insurance Com
Diebold, Inc.: Richard S. Gwinn, as pany: Griff Webbies, Phil Blumberg,
sistant divisional manager; John E. George Fowler, Isabelle Hilterbrand,
Earl Suggett, Merrill Davis, Zeke
Zeman and Doris Reid.

Hy-Line Poultry Farms: Russ Wells.
Iowa Stamp & Marking Company:

Bob Knott and V. T. Kelso.
lvirk Gross Company: Kirk Gross
and Joe Burright.
Lawrence Company: Roger P. Carqueville, assistant vice president, Chi
cago, and Richard R. Robinson, dis
trict manager, Omaha.

Life Investors Insurance Company:

Theron P. Thomsen, vice president,
group division; William E. Felter,
state credit life director, and Robert
Warner, credit life supervisor.
Master-tapes Music, Inc.: Lynn M.
Kruger, sales manager.
Mosler Safe Company: Hugh Con
nell, regional manager, Chicago, and
Charles Singer, Iowa sales representa
tive, Des Moines.

N ational E q u ity Life Insurance
Company: James P. McCormick, vice

president and agency director.
Old Security Insurance Companies:

F. N. Coulson, Jr., vice president, and
Dave L. Huso, regional representative.
North Central Companies: Robert
Ramaley, financial agency supervisor.
St. Paul Insurance Companies: Leon
ard R. Moeller, assistant secretary,
and Morrie Toussaint, manager, state
of Iowa.
St. Paul Terminal Warehouse Com
pany: R. C. Schall, vice president; W.

G. Johnson, district manager, Des
Moines, and Jerry Mathew, represent
ative.
James Talcott, Inc.: Clarence A.
Adams, vice president, and D. L.
Matthes, assistant secretary.

■4

127

We ll Be Seeing You at the Iowa Bankers Convention

Look for these men at the NFL’s booth at the Iowa
Bankers Convention. They will be happy to explain
how an NFL Credit Life Program will . . .

. . . Increase your profit
. . . Better serve your customers
. . . Lower your cost of administration

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

Whether your bank is large or small, National
Fidelity can tailor a credit life insurance program
to fit your needs. Our programs are simple, flexible
and designed to cover any type of loan made in your
bank, regardless of size or term.

One of the Nation’s Strongest by Any Standard o f Comparison

'R a t io n a l fid e lit y \ jf e
IN S U R A N C E C O M P A N Y

K A N S A S C I T Y 6, M O .

N o r t h w e s t e r n B a n k e r , O c t o b e r , 1966

128

Iow a

News

Tension Envelope Corp.: Phillip
Goddard, sales manager; G. Gilbert
Dorton, William D. Rhoades, John M.
Stearns, Charles T. Werner, Jr., and
Larry T. Wilson, salesmen.
United States Check Book Company:

C. B. Batchelder, president; Fred E.
Pfaff, vice president; Chuck Strattan,
Chuck Peterson, Walt Schlenker and
Richard Dick, representatives.
Van Horne Investments, Inc.: John
Van Horne, president, and Bob Rob
erts, representative.
Western Mutual Insurance Com
pany: J. Dolliver Kent, St., chairman

of the board and treasurer.
B. C. Ziegler and Company: Michael
B. Walsh, resident manager, Iowa.

Convention Exhibitors
The following firms have indicated
they will have exhibits at the annual
convention of the Iowa Bankers Asso
ciation at the Hotel Fort Des Moines,
in Des Moines, October 16-19:
Bell & Howell, Des Moines; Cummins-Allison Company, Chicago, 111.;
National Cash Register, Des Moines;
Mastertapes Music, Des Moines, I.B.M.,
Des Moines; Eastman Kodak, Roches
ter, N. Y.; Living Color Financial Dis
plays, Miami, Fla.; Koch Brothers, Des
Moines; Iowa F & E, West Des Moines;
Brandt Coin Handling Products, Oma
ha; P. & H. Fixture Company, Spencer,
Iowa; M & M Sales, Des Moines; Ten
sion Envelope, Des Moines; Guards-

S t o r e y K e n w o r t hy
business interiors • stationers

T O W A B A N K E R S are invited to inspect our display of 15 model offices
“ while they attend the Iowa Bankers Convention. O u r experienced staff
will be pleased to describe our design service for banks. W e are proud to
represent outstanding lines of furniture, carpets, draperies and accessories
to satisfy the most discrim inating taste.
Shown below is a recent installation of desks, chairs and accessories fur
nished to the Ja sp e r C o u n ty Savings Bank, Newton, Iowa. Their President,
Mr. A . E. Peters, is another Iowa bank president who has high regard for the
services provided by the Storey Kenworthy Com pany.

man Life Insurance Company, Des
M oin es; Addressograph -Multigraph,
Des Moines; Des Moines Rubber
Stamp, Des Moines; National Fidelity
Life, Des Moines.

J. F. Lewis Candidate for
ABA Executive Council
At the urging of a number of his
friends, F. J. Lewis, president of the
Harlan National Bank, Harlan, has
announced his candidacy for the posi
tion as a member
of the American
Bankers Associat i o n e x e c u tiv e
c o u n c i l from
Iowa. The elec
tion of this mem
ber, for a threey ea r term , will
take place Tues
day morning, Oc
tober 18 as the
F. j . L E W I S
first order of busi
ness that day. A caucus of Iowa
members of the ABA will be held
Monday afternoon at 4:30 p.m.
Mr. Lewis has been president of
Harlan National Bank since 1949. He
joined the bank in 1936 and has been
there since that date except for mili
tary service in World War II. Mr.
Lewis was elected chairman of Group
5 of the Iowa Bankers Association in
May, 1961, and served two years in
that capacity. He also served several
terms on the IBA legislative commit
tee.

Retires At Sioux City
Harold H. Strifert, vice president of
the First National Bank, Sioux City,
has retired after serving the bank for
50 years.
He was first employed with the
bank in June, 1916, as a messenger
and has been with them continuously
except for a nine-month period during
World War I when he served in the
Navy.
Mr. Strifert said he intends to re
main in Sioux City and has made no
immediate plans, but may do some
traveling after the first of the year.
‘W H E R E
THE

RESERVATIONS
285-170S

FUN

W ELCOM E IOW A BANKERS
DENNIS

CREE

:
HAL COOKE
♦
A T T H E PIANO
i I N B I G J I M ’ S R OOM

GRAND BUFFET SUPPER FROM 6 P. M.
Buffet Luncheon Daily Except Sat. from 11:30
Cal l

A N N U A L COVER C HARGE $10
2 8 5 - 1 7 0 5 F o r C o m p le t e I n f o r ma t i on

N o rth w e ste rn Banker, O c to b e r , 1966

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

129

by the Bay...
ÛQÛ
ÛÛÛ
BQODQQ
nDoacs
GUQOQO
00.11000

R. Crosby Kemper

Charles G. Young, Jr.

R. Crosby Kemper, Jr.

Clark G. McCorkle

Charles W. Koester

Samuel A. Blasco

Roy A. Thompson

. . . these Men from the City will be in San Francisco
representing the City that’s the choice of more-thana-1000 correspondent banks: City National Bank &
Trust Company.

Francis G. Foster, Jr.

Kramer

John

-•

James

Calk

i f s great to grow with the

We’ll be at the ABA to lis t e n ...t o le a rn ...to meet
old friends and make new ones.
But should you want to talk business, we’ll gladly tell
you about CORRESPONSIBLE banking— the responsible
approach to the correspondent relationship that has
earned worldwide respect for the one Kansas City bank
that has everything.

National Bank & Trust Company
. . . in growing Kansas City
N o rth w e ste rn Banker, O c to b e r, 1966

130

Iowa

News

itnrn (¿roup i iiairm rn
On F arm , itasi nr ss Vimditiaas
C HAIRMEN of the 10 groups com
prising the Iowa Bankers Asso
ciation were invited again this year
by the N o r t h w e s t e r n B a n k e r to pre
pare brief reports on agricultural and
business conditions for our readers.
Their reports follow, and generally
show a continued good level of income
for livestock and crops, along with
business in agriculture-oriented com
munities. However, rising costs of
replacement livestock, services and
supplies for farming, and land indi
cate the Iowa farmer will again be
plagued by having to “run hard to
stand still” in a constantly rising econ
omy. The complete reports follow:

E. W . CLAUSSEN
President
Farmers State
Bank
Schleswig, Iowa
Chairman
Group One

G ENERAL business conditions in
the Group One area are good. This
is due to their direct relationship to
the farm conditions—sales of farm ma
chinery, feed, fertilizer, etc., the soft
spot, perhaps, being in the housing
industry. Bank deposits are hitting
new highs. Loan demand is also high
and we have continued liberal exten
sions of credit by merchants and deal
ers. I do not believe most rural banks
have quite the tight money situation
as do the city banks.
The farm economy is very healthy.
Hogs, even with recent decline, have
held up better than expected and cat
tle are doing as well as predicted.
Replacement cattle prices are much
above those warranted by current fat
cattle prices and, in some instances,
above those warranted by futures
prices. Activity has started in the
purchasing and contracting of cattle,
with reports of purchases of steers
and calves at $30 and above, light
yearlings $28-$30 and heavy yearlings
and twos at $25-28. A little difficult to
pencil with $1.40 corn.

Crop conditions are good to excel
lent, although some isolated areas suf
fered because of a dry June and July.
August moisture was generally above
normal. Corn is maturing on sched
ule and beans are considerably ahead
of last year.
Land prices continue to rise. Re
cent sales in this immediate area
would indicate a rise of at least 10 per
cent since last year.

JOHN E. ROWLES
Vice President
Union Trust &:
Savings Bank
Fort Dodge, Iowa
Group Two

G ENERAL business conditions in
Group Two, with a few excep
tions, continue to be good. One of
the exceptions is in the field of con
struction and allied fields. The first
six months of 1966 showed 292 build
ing permits, compared to 518 permits
for the corresponding period of 1965.
During the same period, however,
checking account activity increased
over 14 per cent and employment con
tinues to be high.

T O T A L A SSE TS— $45,000,000.00
Ititi our main asset is PROMPT, FRIENDLY SERVICE
(A sk

J . W IL L IA M V A N D Y K E
C hm . of the Board

N o rthw
e ste rn Banker, O c to b e r , 1966

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

LES O L S O N
Vice President

S ee

O ur C u stom ers)

BU RT P O U L S O N
Vice President

Y o u in D es M aines

Y 1
SIOUX CITY, IOWA
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

C O N N IE A R O N S O N
Asst. Vice President

131

W HAT-A-DEAL

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

Wouldn’t you like to have
a deal like this??!!
Stop by our booth at the iowa Bankers Con
vention and meet our dealer, Bill Littrell.
We will explain the Guardsman’ s Credit Life Insurance ileal to you.
P.S. We can also offer you quite a deal with our new S.P.M .P.*
* Single Premium Mortgage Plan

No rthw e ste rn Banker, O c to b e r , 1966

132

Iow a

News

COMING SOON
at

complete

IBM automation
fo r even faster,
more accurate ser
vice of all items
and collections for
Northeast Iowa
banks

Farm real estate values are approxi
mately 10 per cent higher than a year
ago. Our corn and soybean crops are
looking very good. Replacement of
feeder cattle is beginning but the cur
rent prices of feeder cattle and corn
are holding many of the buyers back.
Our hog producers have had a very
good year. This should continue for
a while despite the fact that hog
prices will be trending downward this
fall and winter as a result of a bigger
spring pig crop.
Banks are working much closer
with farmers, encouraging them to
budget very carefully and to keep
adequate and accurate records. The
emphasis is on extension of money for
real necessities rather than luxury
items.

the increase in the price of feed, buy
ing back has been relatively slower
this year than in the past few years.
Land prices are still on the upswing
with the determining factor being
farm consolidations to aid the enlarge
ment of the farming operation. We
find that the higher prices of border
ing areas are slowly creeping into our
area.
The economy of our area has surely
benefited from the higher prices, not
only livestock, but also dairy. The
increase in the price of milk has
caused second thoughts of many in
this predominantly dairy and hog area
who had been considering quitting
milking. As farming goes, so go all
of us who deal directly with the farm
ers. This could be a banner year for
all. We do enjoy the present prosper
ity but still have an obligation to our
customers to furnish adequate finan
cing without allowing over extension.

Come in or call for informa
tion on this new service.

,---------------- Z

) li£

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

NATIONAL BANK
O F WATERLOO
1 10 EAST

M. F. CHEVALIER
Executive Vice
President
Citizens State Bank
Postville, Iowa
Group Four

T. N. HOWE
President
Adair County
State Bank
Greenfield. Iowa

I N OUR Group Four area in north

Ken Young, com
puter m a n a g e r
stands ready to be
o f service to you.

■Y

east Iowa the feed and grain situa
tion is good, except for some isolated
spots where there has been a shortage
of rainfall the last two months. Early
rains this spring boosted hay yields
and strengthened pasture conditions.
It appears now that we will have a
bumper corn crop that is mostly out
of the way of frost, but we have been
short on rain the last month, which
has shortened fall pastures consider
ably.
The hog price of the first half of
1966 is carrying into the fall, maintain
ing the high farmer income of 1965.
Most of our cattle feedlots are down
in numbers with our cattle feeders
looking for replacements. Due to the
high cost of replacement cattle and

Chairman
Group Five

B USINESS conditions remain good
in the Group Five area. The
businessman on Main Street is main
taining or increasing his inventory.
He is also complaining some about in
creases in his costs.
The farmer is in a good spending
mood as the prospects are for a bet
ter than average corn and soybean
crop. Hog prices are excellent and
the cattle operation still shows a
profit.
The farm equipment dealer has
sold more new equipment, but his
used equipment lot is also well filled.
Other farm suppliers have had a good

PARK AVENUE

WATERLOO,
PHONE 2 3 5 -0 3 3 1

IOWA

(A re * Code 3 1 9 )

Computer Center: 315 East 5th St.

r .

a n k e r

the e x ec u tiv e planning staff o f the

K I R K G R O S S C O . in vite y o u to visit our
MEMBER
Federal Deposit Insurance Corporation
Federal Reserve System

H o tel S a very suite during the c o n ven tio n .
Y

EAST SEVENTH

STREET

Telephone 234-6641

W ATER LO O , IO W A

No rthw e ste rn Banker, O c to b e r, 1966

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

133

Sit back and relax,
Red Shield is the creditor insurance
program that sells itself
It was planned that way.
. . . planned to offer your clients the
kind of branded protection they want.
. . . and planned to offer you profits
with a minimum of red tape.
Red Shield provides a choice of
insurance plans to fit your customer's
needs. Operates with fast, accurate
data processing procedures that
save you work. And profits increase
automatically through life and
disability coverage, special plans for
installment, chattel, home mortgage
or commercial loans.
Red Shield sends in a team of
professionals to train your staff,
speed and simplify your creditor

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

nsurance operations, and back up
four sales effort. While you look
)n calmly.
rhey even give you a customer
irousing advertising campaign,
vith direct mail, posters, brochures,
3d mats, ready for your imprint.
Red Shield is the
Derfect creditor
nsurance program
for bankers who like
profits without
pressure. For more
information about it,
write to the North
Central Company
nearest you.
Then start relaxing.

The North Central
Companies
3 3 5 M in n e s o ta St.
St. P aul, M in n e so ta
P r o t e c t io n a ll w a y s

Maine Fidelity Life Insurance Co.

Portland, Maine
North Central Life Insurance Co.

St. Paul 1, Minnesota
Royal Oak Life Insurance Co.

Pittsburgh, Pennsylvania
West Virginia Life Insurance Co.

Huntington, West Virginia
N o rthw e ste rn Banker, O c to b e r , 1966

134

Iowa

News

year as a result of the increased usage
of fertilier, insecticides and herbicides.
The prospects for higher feed costs
next year and only fair hay and pas
ture conditions at this time are caus
ing the cattle feeder to be cautious
about buying or contracting for re
placement cattle.
Land prices continue to rise as
farmers seek to enlarge their opera
tions.

Take a Look at a Couple
of Potential Millionaires

A. W . LUCHT
President
Union Story Trust
& Savings Bank
Ames, Iowa
Chairman
Group Six

G ROUP SIX, located as it is in the
Bruce Reynolds and Ben Priess

Each o f these men is ahead o f schedule for writing $1,000,000
o f permanent life insurance. Yes, way ahead.
This is tremendous in itself.

But w ait!!

They both joined our Company this February. Neither one had
any previous experience in life insurance sales. Now, that is
something! And how did they do it? Because National Equity
L ife has simply-explained, easily-sold policies.
They also have room for agents . . . both full-time, part-time
and brokers. Interested? K now someone else who is? Contact
James P. McCorm ick, Vice President and Agency Director.

NATIONAL EQUITY LIFE INSURANCE COMPANY
3839 Merle Hay Road
Des Moines, Iowa 50310
Phone: 276-6781

G overn m en t B onds

C o rp o ra te B o n d s

M u n ic ip a l B o n d s

M u tu a l F u n d s

L is te d a n d U n liste d S to c k s
C o m m o d itie s

Conway Brothers-First of Iowa Corp.
902 Walnut Street

Phone 283-2003
—

Algona

Fort Dodge
Cedar Rapids

Des Moines, Iowa 50309

OFFICES —

Mason City
Mount Pleasant
Iowa Falls
Denison

N o rth
e ste rn Banker, O c to b e r , 1966
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Sioux City

heart of Iowa, has within its bor
ders the state’s capitol, and large in
dustrial and financial organizations, as
well as a generous portion of the
state’s most fertile agricultural land.
Its economy is, therefore, influenced
by the same agricultural, industrial,
and financial factors which shape the
business climate in the entire state as
well as the nation as a whole. The
cry of “tight money,” “no money,”
“high interest rates,” etc., is echoed
within the borders of Group Six by
both lender and borrower alike as it
is throughout the entire nation. The
question most frequently asked is
what has become of the money which
was so plentiful less than a year ago.
A quick glance at the published
statements of the banks within the
group reveals a somewhat higher loan
to deposit ratio but not sufficiently in
creased to cause the shortage of money
lamented by so many people. It would
appear that the problem is caused not
so much by a shortage of money, per
se, as it is by the lack of turnover of
the total lendable funds of lenders.
Every time a loan is renewed rather
than paid, some new borrower is de
nied the use of the funds. Only about
10 per cent of the principal of a 30year real estate loan is retired within
the first 10 years of the life of the
loan. The easy money and loose credit
practices followed by lenders in the
past are now being reviewed with the
result that more emphasis is being
placed on the old tried, true and fun
damental concepts of the requirements
of good credit.
I believe that loans for speculation
purposes, no matter how good the col
lateral, are now being frowned upon
by Group Six bankers in favor of pro-

Iowa

News

135

ductive loans which will add to the
available goods and services of the
economy as a whole. The credit
worthy borrower requesting a produc
tive, short term, self liquidating loan
may find his money costing more but
I am sure he will find the money he
needs. It is likely this situation will
continue to exist until the flow of new
savings picks up in volume sufficiently
to offset the continuing high loan de
mand from the business section of
the economy.
Employment within the borders of
Group Six is at the highest possible
level. In fact the demand for quali
fied people exceeds the supply, thus
maintaining a high wage scale. The
above average per capita income
within this group lends stability to the
demand for consumer goods. Retail
ers generally are showing steady in
creases in both their unit and dollar
sales and are anticipating increased
volume this coming Christmas season
over a year ago.
The agricultural climate within the
group poses some problems for the
farmer as he looks ahead and plans
for the coming year. The price of
both feeder cattle and corn is relative
ly high and the price outlook for fin
ished cattle next year is clouded some
what more than usual by the current
unsettled conditions within the econ
omy generally. Whether to convert
this year’s corn, with a high market
value, into next year’s beef, with an
uncertain value is a question farmers
are facing this year with somewhat
more uncertainty than usual. The
1966 crop, although hurt somewhat by
the lack of moisture within the area,
appears to be a good one. No short
age of feed exists and with beef and
pork prices at their current levels
the farmers of the area will no doubt
have a good year.

REID C. GIESE
Vice PresidentCashier
First National
Bank
Sumner, Iowa
Chairman
Group Seven

T HIS section of northeast Iowa
(Group Seven) looks very good
this year, both for agriculture and for
business. On the agricultural side we
had a year much like last year. We
are dry at this time; however, feel that
we have had ample rain to mature a
good crop. The northern part of

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

A WARM WELCOME AWAITS YOU BEHIND THIS FAMILIAR EMBLEM at the
Iowa Bankers Convention at the Hotel
Fort Des Moines, Des Moines. We’ll be
there, of course, and we’ll be expecting
you. Meanwhile, you can find us at
La Salle National Bank, 135 South
La Salle Street, Chicago, Illinois 60690.
STate 2-5200, area code 312. Complete
Trust Services. Member FDIC.

N o rthw e ste rn Banker, O c to b e r , 1966

136

I o w a News

A .

Warm
Welcome
from . . .

Cyrus Kirk awaits you at the
LaSalle National Bank’s hospitality
room during the Iowa Bankers
Association convention. Cy is a
Vice President of our bank and
works with Max Roy in Iowa.
He knows Iowa farm ing and Iowa
banking. Cy can make on
the spot decisions when necessary
and he can call on other mem
bers of our team when he
needs them. Look him up at Mr.
LaSalle’s hospitality room during
the Iowa convention. Cy lives
nearby in Des Moines and his
phone is 515— 277-2602. His head
quarters are at LaSalle National
Bank, 135 South LaSalle St.,
Chicago, 111., 60690.
STate 2-5200 (area code 312).
Complete Trust Service,
Member FDIC.
N o rth
e ste rn Bunker, O c to b e r , Î966
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Group Seven area was quite wet this
spring, which caused delay in getting
the crop in the ground. However,
I do not feel that we were as wet as
perhaps the southern area of our
group this spring and certainly not as
bad off in this respect as other parts
of the state. From reports coming to
me from the various areas it looks
like many other sections of the coun
try have been much drier and perhaps
had more drouth damage this year
than we have in this particular area.
We feel that we should be able to har
vest a near record crop in most areas.
Oat yields in our group this year
were just average. The corn yields
should be very good and bean yields
should be excellent for the most part.
They are all starting to ripen now.
Hay will be in good supply, which
will be a great aid to our dairy farm
ers. Last year, as you may recall, be
cause of the drouth conditions the
year before, hay was extremely short
in this section of Iowa.
Livestock prices and profits have
been relatively good during the year
so far. Hog prices have been the more
profitable. Our cattle feeders have
made fair profit during this past year,
however the profit margins have been
narrower than they were a year ago.
The market now looks like it should
hold relatively level from now until
near year end. The long term feeder
cattle outlook looks good; however, I
feel that profits will be squeezed a
little more than they have in the past
two years, because of the higher cost
of the feeder replacements this fall.
There have been quite a few feeder
purchases made already in this area
with heifers running around 24 to 26
cents and steers running in the 27 to
30 cent range.
Business conditions have been good
so far. Most of the business people
report that their profits are Tun
ing slightly ahead of last year. The
larger cities have had a very good
year and this sh ou ld ex ten d on
throughout the balance of the year.

—

Unemployment, I believe, is at an all
time low and indications now point to
high employment and very active
business conditions into early 1967.
It is my belief that the banks in
Group Seven will all have a very good
year and should end 1966 with deposits
again at an all time high. We have
had problems in the farm mortgage
field, because of the high interest rates
and tight money. I do not look for
much change in this situation for some
time. This may well be one of our
better years.

GLEN H. SUITER
Executive Vice
President
Farmers Savings
Bank
Princeton, Iowa

Chairman
Group Eight

FEW years ago, Fortune maga
zine predicted that the eastern
part of Iowa from Muscatine to Dububue, plus the adjacent Illinois area,
had the greatest potential for future
industrial development in the entire
United States. Completion of the In
terstate 80 bridge at LeClaire this Oc
tober, with the ever increasing volume
of Mississippi River traffic, and the
newly announced joint venture of
Iowa-Illinois Gas & Electric Company
with Commonwealth Edison to build
two nuclear power plants at Cordova,
111., just north of the bridge, is the
combination that will bring this pre
diction for Group Eight true.
Iowa-Illinois Development Company
reports that the counties of Scott,
along with adjoining Rock Island and
Henry in Illinois, since 1960 have had
an average of $30 million per year in
industrial, commercial, residential and
institutional construction. Announced
construction during the next three
years will total $284 million, or more

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I o w a News

than three times the recent average
rate.
Clinton Development Company ad
vises that, including the new $60 mil
lion Chemplex petrochemical plant,
which will eventually grow to a $200
million plant, there is a total of $96
million commercial construction un
derway. A total of 43 smaller compa
nies are interested in locating near
Chemplex.
Muscatine Development Corporation
states that anticipated construction is
$7 million in its county.
Mississippi River traffic has in
creased at Davenport from 970 barges
in 1961 to 1,908 barges in 1965 and
traffic is running at an all time high in
1966. Increasing the depth of the
channel from nine to 12 feet and year
around navigation is under study by
the Corps of Engineers. When this
comes about, the river will be an in
calculable stimulus to industry.
Upon completion of the $160 million
nuclear power plants, we will have
the 12th largest electric generating
capacity in the country, much more
than adequate to serve present needs.
The excess will be sold to unknown
industries now considering the area.
With Interstate 80, the Mississippi,
five railroads, excellent air service,
and an abundance of power, the Group
Eight counties of Cedar, Clinton, Jackson, Jones, Muscatine and Scott have
a tremendous future in store for them.
Although the river communities will
benefit first and most, the chain re
action of land and labor asquisition
will jolt the interior intensely. Our
economy is already showing the re
sults of this new boom.
Our farmers, h o w e v e r, although
blessed with better prices now and
good predictions for the future, were
plagued with too much rain early and
then a near drought in the northern
portion of the group. This year, yields
are reduced.

J. C. BLACKFORD
Senior Vice
President
Union Bank &
Trust Company
Ottumwa, Iowa
Group Ten

operations in the
11 counties of Group Ten are
quite diversified, with excellent row
crop land in some sections, cow-calf
operations and grazing land in other
sections, and many farmers that carry
on a combination operation of some

g r ic u l t u r a l

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Federal Reserve Bank of St. Louis

corn and beans, hogs, and a small cow
herd. Generally, crops are average,
some above average and some below
average due to spotty rainfall, but the
lack of rain during the last two weeks
is causing some concern. It appears
the price of corn and beans will be
well above last year and this will
bring more cash to the farmers, even
where crops are below average. Calf
production has been good and prices
are stronger. Predominantly farm
banks have had an increase in loan
volume this year, partly due to excel
lent pasture renovation that influenced
farmers to buy more cattle for this
pasture. Therefore, an agricultural
report would, and should be, quite
favorable.
The population in our counties de
creased considerably from 1950 to
1960. However, almost all county seat
cities have e x p e r ie n ce d industrial
growth and employment is full. I be
lieve industrial expansion will con
tinue to increase. Retail sales are
steady in some areas, and in other
areas, much improved over 1965. Farm
machinery sales are reported to be
excellent.
Over-all deposits in banks in Group
Ten are higher than 1965 so that loandeposit ratios have not changed much.
Demand deposits in the larger banks
do not seem to increase. Time depos
its could be quite volatile depending
on rate competition.
Loan demand continues strong, even
with rate increases. Banks that have
increased time deposit and savings
rates will experience difficulty in
maintaining profit margins in 1966.
In summary, generally, business and
agricultural conditions are favorable.
Industrial e x p a n sio n is favorable.
However, no attempt is made, or will
be made, to judge what could happen
to our local economy by more infla
tion, deflation, increase or decrease in
activities in Viet Nam, increase or de
crease in governmental expenditures,
and the stock market gyrations. The
above factors are so important. Bank
deposits could be, as I said before,
quite volatile. Long term loan com
mitments should be carefully studied.

EARL G.
RODI BAUGH
Exec utive Vice
President
First National Bank
Fairfield, Iowa
Chairman
Group Eleven

G ENERAL business conditions in
Group Eleven are excellent.

137

And a
Warm
Welcome
from . . .

Max Roy awaits you in Mr. LaSalle’s
hospitality room during the Iowa
Bankers Association convention.
Max is better known by his Iowa
friends as “ Max-a-million”
because he thinks in terms of
millions when it comes to helping
LaSalle correspondents grow.
See Vice President Max during the
Iowa convention and ask him
to tell you how LaSalle’s
staff o f specialists
can work fo r you. Max lives
nearby in Iowa City and his phone
there is 319-338-5224. If
he’s not in, he’s probably out
calling on midwestern banks or is
at LaSalle National Bank, 135 South
LeSalle St., Chicago, 111., 60690.
STate 2-5200 (area code 312).
Member FDIC. Complete Trust
Service, o f course.
N o rth w e ste rn Banker. O c to b e r , 1966

138

Iow a

News

am sure industrial employment is at
an all time high. In fact, some areas
are hampered by a shortage of labor
and comparable housing.
Agricultural receipts and crop out
looks have been very good, but top
harvest yields are not expected this
fall. Lack of rainfall during July and
August has reduced the yields to aver
age, if not below average in this area.
It is hoped livestock prices will offset
this reduction in crop yields.
I believe retail establishments in all

categories will show a sales gain over
1965 due to the industrial and agri
cultural stimulus in Group Eleven.
Certain areas are also stimulated by
the rapid growth of educational insti
tutions.
Over-all business conditions are fa
vorable. For the banking industry,
demand for loans remains high, and
the loan to deposit ratio is probably
at an all time high, which in turn
should be conducive to a profitable
year for the banks in Group Eleven.

M U N IC IP A L

Newlin Named Manager
At Bankers Service Corp.
Richard C. Newlin has been pro
moted to the new position of general
manager of Bankers Service Corpora
tion, bank brokers in Des Moines,
Iowa. The appointment became effect i v e September
30, according to
an announcement
made by Bankers
Service President
M yron E. Karsten.
Mr. N e w l i n ,
w h o j o i n e d the
firm i n October,
1964, c a m e t o
Bankers Service
with 11 years of
banking experience, the last eight
years having been associated with the
First Federal State Bank and the Na
tional Bank of Des Moines. Mr. New
lin succeeded the late Erwin W. Jones
as vice president of the brokerage
firm.
Bankers Service, which was founded
in 1948 by Henry H. Byers, has served
banks and bankers throughout the
United States, not only in negotiating
the sale of controlling and minority
interests in banks, but also the place
ment of bank personnel.
Mr. Newlin made no comment re
garding future operational plans, but
indicated growth demands would prob
ably necessitate additions to the pres
ent staff. Mr. Byers, who negotiated
a number of sales during 1966, will
continue as consultant and senior vice
president.

BON DS

Specializing in Iowa
County, City, School and
Municipal Utility Revenue Issues
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Statement of Condition June 30, 1966
LIABILITIES
ASSETS
Deposits subject to checks .............
$ 4,383,284.30
Cash and due from banks _______________ $ 1,467 ,544.88
6,430,598.45
Time and Savings Deposits _____
United States Bonds _________ ____________
3,301 ,989.95
230,335.76
Deposits of U. S. Government ..........
State, County and Municipal bonds
1,325 486.64
406,328.21
Deposits of Public Funds ................ .........
0
0
0
.0
0
1
2
Deposits
of
Other
Banks
.......
.................
38,836.24
Other Bonds .............. i..................................
53,854.09
Certified
and
Officers
Checks,
etc.
Loans and Discounts ..........$6,309,316.98
Total Deposits ..................$11,543,237.05
Less: Loan Reserve .........
143,327.06
Capital Stock
250.000.
6,165 989.92
Surplus ...........................................................
500.000.
139 930.11
Banking House ............................................
Undivided Profits .......................................
178,536.62
83 147.69
Furniture and Fixtures ...............................
Dividend Declared .......... ............................
11,250.00
22,500.00 Reserve for Taxes
Stock of Federal Reserve Bank ................
35,565.52
$12,518,589.19

$12,518,589.19

THE FIRST N A TIO N A L BANK OF OELW EIN
M em ber

F D IC

Best Wishes for a Successful Iowa Bankers Convention

O u r c o n g r a tu la tio n s a n d
r e c o g n itio n

h is

b e s t w is h e s
yea rs

to F r a n k

fa ith fu l

W a rner

s e r v ic e

in
th e

Io w a B a n k e r s A ss o c ia tio n

IO W A TRUST AND SAVINGS RANK
ESTHERVILLE, IOWA
FRANCIS T. SHADLE, President
Growing with and located in the Iowa Great Lakes Area
Member Federal Deposit Insurance Corporation

No rthw
estern Banker, O c to b e r, 1966
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

To Manage Spencer Bank

00
00

Members of the board of the Farm
ers Trust and Savings Bank, Spencer,
have elected W. E. Lundeen to the
position of executive vice president
and president-elect. He will serve as
the bank’s managing officer in this
capacity, as well as to serve on the
board.
Ben Abben will continue to serve as
president of the bank for the balance
of 1966. Mr. Abben took over the
reigns as president of the bank follow
ing the death of J. A. (Jack) Edge last
year.
Mr. Lundeen came to Spencer in
September from Carthage, 111., where
he served as president and director of
the Marine Trust Company.

College Financing Talk
William Rechkemmer, cashier, First
National Bank, Hampton, spoke to stu
dents of the Sheffield-Chapin Commuity School recently on the subject of
“College Financing.”

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Federal Reserve Bank of St. Louis

139

If you want a job done
in

the

Quad

.C
it . .

CALL ON US
We

thinkwe

can

Resources.............$1 5 0 ,0 0 0 ,0 0 0

Capital Funds____ $ 2 2 ,0 0 0 ,0 0 0

avcnport Ban
DAVENPORT, IO W A
Member Federal Deposit Insurance Corporation

N o rth w e ste rn Banker, O c to b e r, 1966

140

Iowa N e w s

N a tion a l B a n k o f W a te r lo o H o sts C orresp on d en ts

-K

CORRESPONDENTS of the National Bank of Waterloo were
entertained last month at the bank’s annual dinner party at
the Sunnyside Country Club. A beautiful day for golf greeted
those who brought their clubs and Jim Zabel, Des Moines
Radio and TV Station WHO sports announcer, greeted all the
bankers following dinner. Shown visiting during the party are
from LEFT: J. P. Rigler, pres., Security State, New Hampton;

Iowa Finn Offers
Document Destruction
Lou Pomerantz, president of Sani
tary Wiping Cloth Company, Des
Moines, has been named president of
the two new Iowa corporations whose
operations were previously handled
as branches of Sanitary Wiping Cloth
Company.
A new parent company, according
to Mr. Pomerantz, has been named
Pomerantz Diversified Services, Inc.
The company will act as brokers in
institutional and industrial salvage.

Host R. L. Kilgore, pres., Natl. Bank of Waterloo; Paul Hentges,
cash., Alta Vista State; Thomas Cronin, cash., First Nashua
State; Wayne Noetsch, cash., Security State, New Hampton;
W . R. Mathis, cash., First Security Bk. & Tr., Charles City;
Wm. J. Rickert, a.v.p., Natl. Bank of Waterloo; R. W . Aikes,
pres., and Bernard Harms, a.c., Peoples Savings Bk., Wellsburg.

A second new company has been
named Paper Stock Incorporated of
Iowa, and will be in the business of
bonded removal and destruction of
confidential documents and data proc
essing cards for business and industry.
Sanitary Wiping Cloth Company
will be a division of Pomerantz Diver
sified Services, Mr. Pomerantz said,
and will continue in the business of
processing and distributing 40 grades
of washed and sterilized wiping cloths
to industries throughout the middlewest.

All three companies are located at
2308 Sunset Road, Des Moines.

New Washington Director
Logan T. Heilman, cashier of the
Washington State Bank, Washington,
has been elected to the board of di
rectors, according to Frank Kos, vice
president.
Mr. Heilman replaces the late John
C. Knotek, and he has been with the
bank for the past 27 years, serving as
cashier since 1960.

-f

A Problem in Eastern Iowa?
O F F IC E R S

In Eastern Iowa, an area rich in education,

in industry and in agriculture, the FIRST

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B R U C E T O W N S E N D , President
G . E. W IL S O N , Vice President
W IL L IA M J . J O N E S , Vice President
E. H . J O R G E N S E N , Vice President
F R A N K G . H A U N , Vice President
R O B E R T J . W H IT E , C ash ie r
D O R O T H E A E. H O W A R D , Asst. Vice President
FR E D L U C K E , JR ., Asst. C ash ie r
A L F R E D J . N IS S E N , Asst. C ash ie r
H O W A R D K. K N U T S O N , Asst. C ash ie r
J A M E S F. A N D R E S E N , Asst. C ash ie r
G E O R G E E. T A Y L O R , Trust O ffice r

♦

Member of The federal Deposit Insurance Corporation, Washington, D. C.
$10,000— Maximum Insurance for Each Depositor— $10,000

Digitized
FRASER
N ofor
rthw
e ste rn Banker, O c to b e r , 1966
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Federal Reserve Bank of St. Louis

/•*

141

The country banker will find that every correspondent service he may need can be found
at Central National Bank in Chicago. But, he’ll also learn that the most valuable contribu
tion Central National provides is the expertise of the man who offers this service. You
can check this statement. Drop in to 120 South LaSalle Street and see. Or, call 782-2520.

r
.,

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,

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S T* 0 #0000000000»**_ ****

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Federal Reserve Bank of St. Louis

>. »

«A

¡entrai

ational Bank in Chicago is a m ember of the Federal Reserve System and the F.D.I.C.

N o rth w e ste rn Banker, O c t o b e r , 1966

142

stone in Malaya on the island of
Penang. Mr. Klein is a talented ama
teur photographer and compiled an
exceptionally fine pictorial record of
the trip.
* ^ *

lies Moines News

T HE

Iowa-Des Moines National
Bank has announced plans to in
stall two “third generation” computer
systems. The systems will include an
IBM System/360—Model 40 scheduled
for December of this year and a Sys
tem/360—Model 30 to be installed in
March of next year.
Calvin W. Aurand, president of
Iowa-Des Moines National Bank, said
the new system will include audio re
sponse units and portable television
like video display units to provide in
formation even faster to both bank
personnel and customers.
“Our aim is not only to obtain the
fastest, most accurate financial data
processing, but also to summarize and
report that data to our own manage
ment and to our depositors,” Mr. Aur
and said.
“ The total installation will enable
us to further expand services to our
correspondent banks,” Mr. A ur an d
added. “We plan to offer a series of

JEWELERS TO IOW A
SINCE 1871

original family ownership

TWO COMPLETE
JEWELRY and SIFT STORES
CO U RTESY C H A R G E A C CO U N TS
CERTIFIED GEMOLOGIST
r AMERICAN GEM SOCIETY

JEWELERS

SINCE 1871

S IX T H A T L O C U S T

M E R LE H A Y P L A Z A

283-1961

276-1521

N o rth w e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

computer services to business and pro
fessional clients as well. The ex
panded capacity and speed of the System/360’s will permit instant entry
from remote locations, instant com
puter processing and immediate com
puter response via leased telephone
lines. Customers may use either video
display, typewriter or their own com
puter printers to accept data replies.
Some of the inquiry and transmission
units to be incorporated into the new
system will be on display in the bank
lobby during the Iowa Bankers Con
vention.
He noted that Iowa-Des Moines was
one of the nation’s first banks to in
stall a computer. “ The new System/
360’s and the total information system
approach are consistent,” Mr. Aurand
said, “with our policy of providing the
best, most current data processing fa
cilities for both internal and customer
use.”
* * *
Mr. and Mrs. Harold P. Klein recent
ly returned from a five-weeks trip to
the Far East. Mr. Klein is senior vice
president of the Iowa-Des Moines Na
tional Bank.
A highlight of their trip, Mr. Klein
reported to fellow officers, was their
first look at their two grandchildren.
The Kleins’ son is employed by Fire-

Mrs. Ruth JB. Klotz has been elected
a trust officer of Bankers Trust Com
pany, Des Moines, it was annonuced
by Robert J. Sterling president.
Mrs. Klotz, the first woman trust
officer in the city, is a graduate of
Drake University,
with degrees in
business adminis
t r a t i on a n d in
law. W h i l e in
Drake Law School
she was on the
Law Review staff
and was elected
to the Order of
the Coif.
She was special
R. B. K L O T Z
counsel to the
Iowa State Tax Commission in 1955
and 1956. She practiced law in Hamp
ton, Iowa, and with the firm of Dick
inson, Throckmorton, Parker, Mannheimer and Raife, Des Moines, for 10
years. Recently she was in the legal
department of Dial Finance Company.

Iowa Deposits Increase
Deposits in Iowa’s state-chartered
banks increased 8.94 per cent in the
period from June 30, 1965 to June 30,
1966, to a new high of $2,984,380,649,
according to John Chrystal, superin
tendent of banking.
Loans and discounts were up 13.6
per cent, reaching a total of $1,681,580
as of June 30, 1966.
Time deposits have passed demand
deposits, with time money reaching
$1,366,807,049 and demand money be
ing $1,336,207,072.
Total assets as of June 30 were $3.3
billion for the 567 state-chartered
banks.

V ISIT OUR NEW
MODERN Q U ARTERS DURING
TH E IOW A BANKERS CONVENTION
We're now fust two blocks from convention
headquarters. Stop in and visit us during
your Convention. Let us show you how we
serve your needs through our 8 Iowa offices.

R. G. Dickinson & Co.
IN V E S T M E N T S
S T O C K S — B O N D S — M U TU A L FU N D S
C O M M O D IT IE S

910 Grand Avenue, Des Moines, Iowa 50309
Branch Offices
Atlantic • Carroll • Hampton • Iowa City • Spencer
Marshalltown • Mason City • Des Moines (Merle Hay)

143

PIOWEER u se rsyour preferred customers!
BRAND

The farmer who plants Pioneer seeds is gen
erally a good risk because he’s part o f a strong
team. He’s backed by one o f the biggest and
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companies in the business.
When he buys Pioneer seed, he’s working with
technically trained sales and service teams, thor
oughly grounded in the science o f making crops
grow and producing big bred-in yields inherent
in Pioneer varieties.
A call anytime brings him a Johnny-on-thespot Pioneer salesman, one o f hundreds o f expe
rienced, local salesmen strategically located
throughout corn growing areas. Maturities and
varieties? Pioneer salesmen are thoroughly fa
miliar with the ones best adapted to their areas.
Questions? Whether it’s high-yielding hybrid
corns, sorghums for silage or grain, alfalfas, or
sorghum-sudangrass hybrids, if the local sales
man doesn’t have the answer, he has immediate
access to Pioneer’s Technical Service staff of
college-trained agronomists who do.
Order PION EER, and your customer gets the
very best seed in the business—carefully bred
and tested for yieldability plus all the other char
a cteristics that make great h y b rid s. Plant
Pioneer, and he’s confident o f the highest quality

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Federal Reserve Bank of St. Louis

—strong, viable seed literally raring to get-upand-grow when it’s planted next spring.
At planting time, Pioneer can furnish planter
plates exactly matched to size of seed for smooth
and accurate planting. When planting is delayed,
Pioneer customers can trade for earlier hybrids,
readily available from the company’s network
of plants and warehouses.
Pioneer is proud to offer service and seed that
increases farmers’ odds for profitable crops, cuts
the risk of farming, and makes them your pre
ferred customers.
P io neer H i-B re d C orn C om pany, Des M o in e s, Io w a
G arst and Th om as H yb rid Corn C om pany, C oon Rapids, Io w a

PIONEER.
brand

SEEDS

PIONEER is a brand name;
numbers identify varieties.
H orth w e ste rn Banker, O c to b e r , 1966

144

Iow a

News

Ih ’s M o in es H anks Shoir C ontinued P r o g r e ss
B ANKERS attending the 80th an
nual convention of the Iowa Bank
ers Association October 16-19 will note
considerable progress being made in
Des Moines banks as part of their
continuing growth in the state’s capi
tal city. The newest of equipment,
new buildings and new public service
facilities have been erected or are un
der construction and installation in the
major banks. Here is a brief summary
of what visitors will find at the five
largest banks in Des Moines:
Iowa-Des Moines National Bank

As shown in the picture at left, the
Iowa-Des Moines will receive for in
stallation in December an IBM 360,
newest of the high-speed computers in
order to keep pace with the growing
demands on the bank’s data processing
center. The story about the comput
ers is on page 142.
R E V IE W IN G console of the new IBM 360 scheduled for installation at the Iowa-Des
Moines National Bank in December is Harold. Gandy, a.v.p. in charge of systems and
procedures for the bank.

JAMES C. SHAW, Pres.
OWEN P. McDERMOTT, Secy.-Treas.

ROBERT J. KIRKE, V. Pres.
THOMAS L. WORMLEY, V. Pres.

Central National Bank & Trust

The newest of Des Moines bank
buildings, as well as the newest build
ing in downtown Des Moines, is near
ing completion as new headquarters
for the Central National. The quar
ters under contract for the bank are

Si!aw, McDermott & (Jo.
MUNICIPAL BONDS EXCLUSIVELY
Underwriters and Distributors
of
County, City, School and Revenue Bonds
916 Liberty Bldg.
DES

MOINES,

Phone CH 3-6119
IOWA

5 0309

FIRST NATIONAL BANK
Hampton, Iowa
C o n g r a tu la tio n s to F r a n k H a r n e r , F o r 5 0 Y e a r s o f
F in e S e r v ic e

**Hampton Is On the Move "
Member Federal Deposit Insurance Corporation

No rthw e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

CENTRAL N A T IO N A L ’S new building.

scheduled for completion and occu
pancy early in 1967. Delays in mate
rials handling and due to inconvenien
cing strikes at the plants of suppliers
in distant cities has caused a postpone
ment of occupancy by the bank that
was expected by convention time. Def
inite dates for moving will be an
nounced within a few weeks by the
bank. The building site is at the
southeast corner of Sixth and Locust
Streets.
Valley Bank

Trust

Any visit to Des Moines banks will
not be complete this year without a
trip to Valley Bank’s new Regency

145

IO W A BANKERS
to the
Eightieth

Annual
of

IOWA BANKERS ASSOCIATION
October 16-19, 1966
Your many orders for LB.A. Standard Forms are very much appreciated.
We stock the following forms for immediate shipment.
Safe Deposit Box Lease & Receipt

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Federal Reserve Bank of St. Louis

Agreement Subordinate Landlord's Lien

FORM No. 7

FORM No. 55

Collateral Note

Conditional Sale Contract

FORM No. 12

FORM No. 60

Conditional Sale Contract

Joint Account Report

FORM No. 26

FORM No. 6 1

Note

Security Agreement— General Form

FORM No. 26A

Security Agreement— Short Form

Chattel Mortgage
FORM No. 29

Iowa Uniform Commercial Code Forms

Collateral Receipt & Agreement

UCC-I
UCC-2
UCC-3
UCC-4
UCC-I I

FORM No. 39

Chattel Mortgage
FORM No. 45

All carried in stock for immediate shipment.
Samples and prices sent on request.

W a lla ce -H omestead C o .

PRINTING

I9I2 Grand Avenue

BINDING

•

ENGRAVING

Des Moines, Iowa 50305

Printers of the NORTHWESTERN BANKER for fifty-seven years
No rthw e ste rn Banker. O c to b e r , 1966

146

Iowa

News

drive-in, walk-up facilities for its cus
tomers in that section of the city. The
bank is pointing toward a December
opening of this new building. Bankers
Trust also occupies the eye-catching
building specially designed for bank
operations at the northwest corner of
Sixth and Locust in downtown Des
Moines.

Capital City State Bank

B A N K E R S TRUST expects its new Merle Hay Plaza Office to be opened in December.

Office at Seventeenth Street between
Grand and Locust. A complete story
in last month’s issue of N o r t h w e s t e r n
B a n k e r detailed the beautiful exterior
and interior of this new detached
drive-in teller facility, thought by
many to be the most unique such fa
cility in the United States. The ex
quisite antique furnishings alone are
worth the trip, and bankers will find
the physical layout of the building
most efficient for drive-in walk-up busi
ness.

Bankers who have not visited Des
Moines since last year’s convention
also will have their first opportunity
to see the new building occupied last

Bankers Trust

VALLEY

B A N K ’S

Edward

Burchette

(left), climn., and Neal Sands, pres., in
front of new Regency Offiice.

Nofor
rthw
e ste rn Banker, October, J966
Digitized
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Under construction at this time is
the bank’s newest detached facility lo
cated in northwest Des Moines across
the street from Merle Hay Plaza Shop
ping Center. The Bankers Trust Com
pany Merle Hay office will provide

C APIT AL

C ITY

STATE

now

occupies

these new quarters.

spring by Capital City State Bank.
Located at East 5th and Locust Streets,
the brick-faced new building provides
complete customer facilities on the
ground floor in modern design. Driveup lanes and a large customer parking
lot are adjacent to the main building.

Clifford L. Adams
Clifford L. Adams, 58, president of
the Live Stock National Bank, Sioux
City, died unexpectedly October 2 at
a hospital there after a three-week ill
ness.
Mr. Adams joined the bank in 1930,
became assistant
vice president in
1947, vice presi
dent in 1949 and
was elected presi
dent A u g u s t 1,
1957.
Mr. Adams was
a prominent mem
ber in numerous
Sioux City civic
organizations. He
c. L. ADAM S
was a member of
the Kiwanis Club and was a former
treasurer of the Junior Chamber of
Commerce.
He is survived by his widow; a son,
Stephen Adams of Lincoln, Neb.; his
parents, Mr. and Mrs. Roy F. Adams
of Sioux City, and two sisters.

■V-

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Federal Reserve Bank of St. Louis

147

Result

fast

collection

W e offer 24 hour collection service from banks o f payment in Northwest
Missouri, Southwest Iowa, Northern Kansas and Southern Nebraska. Our
correspondent department is staffed with experienced specialists who will
save you time and effort and end those needless delays. May we help you?
Our representatives look forward to seeing you at the forthcoming
1966 Iowa Bankers Convention

Correspondent Department

Agricultural Department

Everett L. Crume, Vice President
Donald D. Folks, Vice President

Ronald R. Louden, Asst. Cashier
Vernon Whisler, Asst. Cashier

AMERICAN NATIONAL BANK J \
6th & Francis

Phone AD 3-6141

S T .

M I S S O U R I

J O S E P H ,

N o rth w e ste rn Banker, O c to b e r , 1966

148

Iow a

News

N ew H IM 3 6 0 fo r M vrrh n n i s N ationa l

EXPANDED SERVICES— P. James VanDixie, v.p. for data processing (right), is showing two other bank officers, Edward P. Kadera
and John Mangold, v.p. (center), how the newly installed IBM System-360 Model 30 will enable Merchants Natl, to improve and
expand the data processing center services for the bank. Mr. Mangold heads the correspondent dept.

AY back in 1960—a long time ago
in the electronic data processing
era — Cedar Rapids’ forward-looking
Merchants National Bank became the
first bank in the upper Midwest to
install electronic data processing and
magnetic ink character sensing equip
ment. Continuing that pioneering tra
dition, the firm has just completed the

N o rth w e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

first banking installation of a new
IBM System/360 in the state of Iowa.
An even larger computer—a Model 40
—will join the present Model 30 in
the near future.
The installation of the new comput
ers, faster and far more versatile than
previously available models, will en
able the firm to expand and deepen

its data processing service to its cus
tomers and correspondent banks.
“Bankers’ Hours”

“Bankers’ hours are no more,” says
Forbes Olberg, executive vice presi
dent of Merchants National, in sum
ming up the revolution the data proc
essing service has wrought in the
bank’s operations and services. “Our
data processing service is in operation
24 hours a day.”
It may not be bankers’ hours for
Merchants’ 33 data center staffers, but
there is general agreement that the
operation has made life a lot easier
for the bank’s 40-plus major data proc
essing customers.
In addition to handling its own re
quirements and those of a number of
its own business customers, the firm
handles part or all of the EDP (elec
tronic data processing) needs for eight
correspondent banks within a 125-mile
radius. For some of these banks data
processing is handled on an individual
function basis—that is, demand depos
its, savings accounts, installment loan
posting and other similar functions
are done at the data processing center
and the results returned to the corre
spondent bank.
For four banks, however, Merchants
National performs the same full bank
proof function it does on its own ac
counts. The transaction is taken from
the time it occurs at the teller’s coun
ter or at the Federal Reserve Bank.
Credits and debits are zero-proofed and
a grand total accumulated on one or
the other. Documents are sorted by
account number and posted; then re
turned to the correspondent bank in
account sequence for filing.

149
Main Advantage
“The main advantage to correspond
ent banks is that it frees their people
from the tedium of posting,” says P.
James VanDine, Merchant National’s
vice president for data processing.
“There’s less clerical work and more
accuracy. People are freed to do more
customer contact work. When bank
personnel come in at 8:00 o’clock in
the morning all they have to do is
handle overdrafts and other excep
tions. They’re all ready to go.”
This observation points up the fact
that the data processing operation has
managed to reduce turn-around time
to less than 12 hours in many cases.
A network of postal and armored car
routes feeds documents into Cedar
Rapids and out again. Those that are
in by early evening are processed and
out again before dawn.
Mr. VanDine estimated that more
than 95 per cent of the initial informa
tion pickup comes from the documents
themselves. This is made possible by
the magnetic character reader which
picks up the machine-readable infor
mation printed at the bottom of each
check in magnetic ink. Items that
the machine rejects are entered into
the system by means of punched
cards.
When the full service is utilized, the
correspondent bank can el imi nat e
proofing and posting machines—every
thing except an encoder which gives
a transaction proof.
For their own banking customers,
Merchants National is performing a
wide variety of services, and with the
capacity of the new System/360’s, ex
pects to offer an even wider variety.
They have handled payrolls for some
of their customers since 1961. Until
the Cedar Rapids school system ac
quired its own data processing equip
ment, they even handled grade report
ing and student accounting for that
body.
Decision to Update
In explaining why Merchants Na
tional made the decision to update
and expand their data processing cen
ter, bank executives make the point
that their old system—based on an
IBM 1401 and 1460 — was becoming
overloaded.
But to this, Mr. Olberg adds some
further reasons. “The management
of this bank was the first in Iowa to
make a heavy commitment in data
processing,” he says. “We have confi
dence in the future. W e’re in this
business to stay.”
Not just the banking business, he
explains, but in the data processing

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Federal Reserve Bank of St. Louis

Check Cashing Convenience
for your customers
when they visit Arizona

With your recommendations, we will be happy to
issue our exclusive V.I.P. Card to your customers
when they visit Arizona. This will provide check
cashing convenience for your customers at our more
than 84 offices statewide. Merely write us a letter
advising us of their anticipated arrival, and we’ll be
happy to arrange for this special service.

Write to
National Accounts Department
First National Bank of Arizona
411 N. Central Ave.
Phoenix, Arizona 85004

NATIONAL.
BANK
OF A R I Z O N A

H o rth w e ste rn Banker, O c to b e r , 1966

150

fowa N e w s

center business. It is common prac
tice for banks to install data proces
sing equipment and then offer EDP
service to their customers only to the
extent that they cannot utilize their
computer time, gradually phasing out
the service as their own needs grow.
This, Mr. Olberg emphasizes, is not
the case with Merchants National.
“W e’ll increase our capacity as the
opportunity to serve permits,” he says.
Evidence of this dedication is the
bank’s emphasis on having back-up
data processing facilities and its own
auxilliary power supply so there will
be no failure of service.
Growth Opportunity

With

newer

and more versatile

equipment, that opportunity is likely
to grow. The bank already performs
an interesting variety of individualied services for its customers. Take
the field of professional billing, for in
stance.
Some customers punch cards and
bring the information in this way.
Several local physicians and a laundry
and dry cleaning establishment use a
device on their premises to transmit,
via telephone circuits, billing informa
tion directly to the bank’s data proc
essing center.
The bank is already doing inventory
accounting, insurance agency accountig, sales and statistical analyses, mort
gage amortization schedules, and other

PEOPLES . . . Growing
Symbol of Full Service
Growing to meet the needs of its customers has been a
Peoples Bank tradition for over 66 years. To meet the
challenge of full and complete service for every financial
need . . . Peoples expands its facilities again. A larger
installment loan department, increased teller facilities and
expanded trust services take their places alongside Peoples’
many full service features. Peoples continues to set the
standard of excellence in full service banking.

PEOPLES BANK AND TRUST CO.
Cedar Rapids
Member:

Federal Deposit Insurance Corporation

N o rthw e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

Federal Reserve System

Seh o la rsh ip

$100 SCHOLARSHIP was presented re
cently by Max von Schrader, president of
the Union Bank and Trust Company,
Ottumwa, to Miss Katherine Perdue, stu
dent at Ottumwa Heights College. Sister
Muriel Hogan looks on.
The scholarship is to be an annual
award from the Union Bank to a resi
dent of Wapello county attending Ottumwa
Heights. The selection is made by the
faculty and is based on scholarship and
merit.

specialied functions for customers.
The new computers will make it
possible to do much more. In addition
to much greater speed, they offer the
advantages of what computermen call
“direct access.” That is, information
can be stored on magnetic discs, some
what analagous to phonograph rec
ords. The computer can go almost in
stantly to a desired place of informa
tion on these discs, rather than hav
ing to search through a series of
punched cards or a reel of tape.
This means, for instance, that a cus
tomer will be able to make what is
called a “real time inquiry”—that is,
he will be able to use a remote termi
nal to feed a request directly into the
computer and get an immediate reply.
With the new machines, the data
processing center will be able to give
customers a great deal of information
not heretofore available. “We will be
able to give management a concise re
port based on statistical information,”
says Mr. VanDine. “A report they can
use to forecast.”
Another potential is the building of
mathematical models. By feeding
known factors into the computer and
applying them to new situations it
will be possible for a businessman to
get a good indication of what a cer
tain change would do to his business.
This will be useful to business men,
and as Mr. VanDine points out, it is
applicable to many fields. He feels
that even farmers will come to use
the computer to help them determine
what their most profitable crop mix
should be.

151

.1 It h in o Soi' Ih ir o n p o r l M nsonin

FAMED SCULPTOR Louis Paul Jonas works ou rhino for Davenport’s Public Museum.

UAD-CITIANS can now meet a
rhinoceros head-on without con
cern for their safety. The Davenport
Public Museum has a life size sculpture
of a black rhinoceros commissioned by
V. O. Figge, president of the Daven

port Bank and Trust Company and big
game hunter.
The gift to the museum is the work
of Louis Paul Jonas of Hudson, N. Y.,
who is one of the finest sculptors in
the natural history field. He is the

All customer services are conveniently located on one,
street-level floor at the new Capital City Bank building,
East Fifth and Locust in downtown Des Moines. Visitors
to the IBA Convention are invited to tour this modern

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Federal Reserve Bank of St. Louis

creator of the nine full-size dinosaurs
that constituted Sinclair’s World’s Fair
exhibit.
The rhino is cast in fiber glass, as
were the Sinclair dinosaurs, and this
fantastically durable lightweight mate
rial will make it possible to use the
figure in an outdoor exhibit with
proper landscaping.
Mr. Jonas has been working on V.
Figge’s black rhino since last October
in his studios at Churchtown-Hollowville Road near Hudson, N. Y.
V. O. Figge’s gifts to the museum
have included an African sable ante
lope and a greater kudu, and a group
of polar bears collected in the Arctic,
all of which are life-size, and a con
tribution to be used for the collecting
and mounting of the many birds which
are native to this area. Most people
will be surprised to learn that these
birds number approximately 300.
Mr. Figge owns what is probably the
largest collection of Jonas miniatures
in the nation, and they are valuable
both as natural history objects and as
sculpture.

Honor Odebolt Banker
Ralph Griffin, vice president, Odebolt State Bank, was honored recently
for completing 50 years’ membership
in the Masonic Lodge.

banking facility which was completed last spring. Capital
City also welcomes all visiting bankers to their Hospitality
Suite in the Hotel Fort Des Moines, Rooms 423-24, which
will be open from 4:00-11:00 p.m. during the convention.
N o rth w e ste rn Banker, October, 1966

152

Iowa N ew s

F ir st N a tion a l 9 Oelwvein9 F in ish es R em od elin g

L..

A L U M IN U M G RILL accents remodeled exterior of First Na

tional Bank, Oelwein. In addition to the attractive bank name
on the grill facing, two new electrified signs were added, one
on the south and one on the east of the building. Covered
walkway areas noted in picture at left are well lighted with
recessed fixtures. Picture at right shows teller counters in re
modeled interior. The corner entrance was closed and that area
converted to a conference room. The officers space has been

doubled in size, and a room previously rented by the bank has
been converted into an installment loan department. Carpeting
has been placed throughout the entire bank lobby, officers’
quarters and directors’ room.
Open house was held early last month for 135 bankers and
contractors, followed by a dinner at Pine Lodge and a program
on data processing. During open house for the public on two
later days, 4,500 people viewed the newly remodeled quarters.

N ew F o r t R o d g e R an h R uilding I s C om p leted
A

W E A T H E R B A L L towers 46 feet above new building housing State Bank of Fort Dodge.

Iowa’s most attractive new
ONEbankof buildings
was recently com

DONAHUE

SA V IN G S

BANK

Donahue, Iowa
T h e B a n k o f F r i e n d l y S e r v ic e

Established 1904
Member of Federal Deposit Insurance Corporation

Rowan Company, Inc.
COIN COUNTERS and SORTERS
Coin Wrappers - Rill Straps - Rubber Bands
Pass Books, Coin Bags, Duplicate Deposit Tickets
Ball Pens - Desk Sets - Pencils - Novelties
PREMIUMS OF ALL KINDS
N orthw estern

Banker,

O ctober,

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Federal Reserve Bank of St. Louis

1966

Des Moines, Iowa 50309
401 Shops Bhlg.
A Complete Line of
Luggage, Attache Cases,
Catalog Cases, Brief Bags
and other Leather Goods.

pleted by The State Bank of Fort
Dodge, according to John H. Kobs,
vice president.
The new building encompasses 16,720 square feet of space, including both
lower and main levels. Basic con
struction was of poured, reinforced
concrete and steel framing. Nine hun
dred forty-seven cubic yards of con
crete were poured, an amount which
would pave a three-foot sidewalk al
most seven miles in length.
The exterior is comprised of brick
masonry, concrete with chipped mar
ble aggregate, and glass. Windows
and doors are mounted in aluminum.
The roof is constructed of pitch and
gravel.
Soft, indirect lighting and acoustical
properties are provided by means of
an integrated ceiling. Two hundred
forty flourescent lamps are mounted
above the semi-opaqe panels in the

Iow a

.illu m

in i/

News

153

means of closed circuit TV monitors
and high speed pneumatic tubes.
Architects were Maiwurm-Wiegman.
Woodruff-Evans was the contractor.

M ila n s

Remodeling in Progress

ARCHITECTS’ SKETCH of the remodeled Manning Trust and Savings Bank. The ex
tensive remodeling job will be completed in about six months, according to Lyle Hansen,
cash., and will include new windows, entrance and trees around the bank. Interior will
be completely remodeled and rearranged with new equipment, desks, carpeting and ceil
ing. Wilkins and Bussard of Des Moines are architects for the project.

lobby. Controls are designed to sec
tions of the ceiling as needed. Facili
ties for background music are also in
corporated.
The entire main floor, including the
vault, is covered by over 1,100 yards
of acrylic fibre carpeting, and furni
ture and fixtures were selected to
blend harmoniously with interior de
sign.

The State Bank weather ball, lo
cated atop a 46-foot pylon for easy
viewing at the head of Central Ave
nue, forecasts weather conditions.
Among the first remote control tele
vision drive-in facilities in Iowa, The
State Bank TV Motor Bank is located
over 250 feet from the main building.
The installation is designed to serv
ice three customers at one time by

Interested
in
W aterloo?

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Federal Reserve Bank of St. Louis

An addition 26 feet wide by 84 feet
long that will nearly double the floor
space of the Columbus Junction State
Bank is well under construction in
Columbus Junction. The new addition
will blend with the existing building,
following interior and exterior remod
eling, into one large banking room.
The remodeled structure will in
crease the number of teller windows
in the main lobby from five to six,
and will add a walk-up window and a
drive-up teller window, both to be lo
cated in the bank building itself. The
exterior will consist primarily of
brick and glass.
One new feature will be a commu
nity room and kitchen that will be
made available to groups for meetings.
It is to be located in the building base
ment and will be accessible either
from the bank lobby or from an out
side entrance.
Architect is Chas. Herbert & Asso
ciates, Des Moines. General contrac
tor is Earl Wood & Sons, Ainsworth.
Completion is anticipated shortly after
January 1.

As the oldest bank in Waterloo, we are in a position
to offer you contacts and sources of information which
may be valuable to you. The Waterloo Savings Bank
provides all the facilities o f a modern full-service bank,
including an active and rapidly growing Trust Depart
ment.
If you require Correspondent Bank facilities in our
area, we would be happy to serve you and your cus
tomers. Please call on us whenever we can be helpful
to you !
P.S. : Thanks, Frank Warner, for your many contribu
tions to Iowa Banking.

nterbD savings bank
W EST

FO U RTH

STR EE T

CO M M ER C IA L« W ATERLOO.

IO W A

Dial 235-1431

No rthw e ste rn Banker, O c to b e r , 1966

154
H
6
H a ls e y , S tu a r t & Co., I n c ..............................
H a r r is T r u s t a n d S a v in g s B a n k ........... 45
H a w k e y e -S e c u r it y I n s u r a n c e C o .................56
H e n d e r s o n , T. C. & Co., I n c ........................ 62
H o lid a y M o to r H o t e l ...................................... 16
H y -L in e s P o u lt r y F a r m s ........................... 53
I

OCTOBER, 1966
A

A c o r n P r in t in g C o m p a n y ............................ 154
A llie d I n s u r a n c e G ro u p ............................... 48
A llis o n - W illia m s C o m p a n y ......................... 72
A m e r ic a n N a t io n a l B a n k an d T ru st
C o m p a n y o f C h i c a g o ...................................117
A m e r ic a n N a t io n a l B a n k — St. J o s e p h . .147
A m e r ic a n S ig n an d I n d ic a t o r C orp. . . . 66
A m e r ic a n T r u s t a n d S a v in g s B a n k —
D u b u q u e ........................................................... 121
It

B a n k B u ild in g a n d E q u ip m e n t C o r p ...
4
B a n k e r s L ife C o m p a n y ............................... 18
B a n k e r s R u b b e r Stam p, I n c ......................... 154
B a n k e r s S e r v ic e C o r p o r a t io n .................. 58
B a n k e r s T r u s t C o m p a n y — D es M o in e s . 108
B a n k e r s T r u s t C o m p a n y — N ew Y o r k . . 57
B a n k o f A m e r ic a ............................................. 28
B a n k o f C a lifo r n ia ......................................... 65
B a n k o f M o n t r e a l ........................................... 54
B e c k e r & C o w n ie , I n c ...................................... 148
B eh, C a r le to n D., C o .........................................138
B la c k S ale S y s t e m ........................................... 13
C
C a p ita l C ity S ta te B a n k — D es M o in e s . 151
C e n tr a l N a t io n a l B a n k — C h i c a g o ............ 141
C e n tr a l N a tio n a l B a n k an d T ru s t
C o m p a n y — D e s M o in es ............ 21 -22-23-24
C e n tr a l S ta te s H e a lth & L ife C o ................157
C e n tr a l T r u s t a n d S a v in g s B a n k —
E ld r id g e ........................................................... 126
C h a se M a n h a tta n B a n k ...............................
9
C h e m ic a l B a n k N e w Y o r k T ru s t
C o m p a n y .......................................................... 41
C h ile s & C o m p a n y ........................................... 88
C itiz e n s S ta te B a n k — P o s t v i l l e .................122
C ity N a tio n a l B a n k a n d T r u s t C o,—
K a n s a s C i t y .....................................................129
C o lo r a d o N a tio n a l B a n k ............................. 85
C o m m e r ce T r u s t C o m p a n y — K a n s a s
C ity ................................................................... 99
C o n w a y B r o t h e r s — F ir s t o f I o w a
C o r p ........................................................................134
C o u n cil B lu ffs S a v in g s B a n k ................... 122
C u rtis 1000 I n c .....................................................155

D a in , J. M. & Co., I n c ................................... 74
D a v e n p o r t B a n k an d T r u s t C o .................... 139
D a v e n p o r t, F. E., & C o ................................. 46
D e c o r a h S ta te B a n k ....................................... 148
D e L u x e C h e c k P r in te r s , I n c ........................ 59
D e n v e r U. S. N a t io n a l B a n k .................... 83
D ia m o n d L il’ s ................................................. 128
D ic k in s o n , R . G. & C o ...................................... 142
D o n a h u e S a v in g s B a n k .............................. 152
D o u g la s -G u a r d ia n W a r e h o u s e C o r p . . . . 44
D o w n e y , C. L., C o m p a n y ........................... 63
D r o v e r s N a tio n a l B a n k .............................. 119

Kh E
332®
b

E x e c u t iv e D a ta S y ste m s, I n c .......................I l l

F a r m B u s in e s s C o u n cil, I n c ....................... 105
F id e lit y P la c e m e n t C e n te r .......................... 154
F ig g e , R e g in a ld , A s s o c ia t e s ..................... 155
F ir s t F e d e r a l S ta te B a n k —
116
D e s M o i n e s .....................................
F ir s t N a t io n a l B a n k o f A r iz o n a .............149
F ir s t N a t io n a l B a n k — C h ic a g o ................ 47
F ir s t N a tio n a l B a n k — C lin to n ................. 140
F ir s t N a t io n a l B a n k — D e n v e r ................ 84
F ir s t N a t io n a l B a n k — H a m p to n ............ 144
F ir s t N a tio n a l B an k-—M in n e a p o lis . . . . 71
F ir s t N a tio n a l B a n k — O e lw e in .................138
F ir s t N a t io n a l B a n k — O m ah a .................. 95
F ir s t N a t io n a l B a n k — St. J o s e p h .......... 100
F ir s t N a t io n a l B a n k — S io u x C ity .......... 123
F ir s t N a tio n a l B a n k an d T ru s t
C o m p a n y o f L in c o ln .................................. 91
F ir s t N a t io n a l B a n k a n d T ru s t
C o m p a n y o f T u ls a ...................................... 81
F ir s t N a t io n a l C ity B a n k — N e w Y o r k .49
F i r s t S to c k Y a r d s B a n k — S ou th
St. J o s e p h ......................................................... 103
F o r t D e s M o in e s H o te l ................................ 10
F o u n d a t io n f o r C o m m e r c ia l B a n k s . . . . 73
G
G ro ss, K ir k , C o ....................................................132
G u a r d sm a n L ife I n s u r a n c e C o .................... 131

S E E K IN G
E X E C U T IV E
VERSO N N EE?

W e Can H elp Î

Write in confidence to

TOM CHENO W ETH
MANAGER

1923 Commerce Tower
Kansas City, Mo. 64105
A C 816-421-3474

DEL IT y
PLACEMENT

C E N T E R

É
P

SERVICE WITH A
PERSO N AL
TOUCH

F I

I o w a - D e s M o in e s N a tio n a l B a n k 125, 158
I o w a L e g a l B la n k & P r in t in g C o ............154
I o w a S e a r c h I n c ..................................................154
I o w a S ta te S a v in g s B a n k — C r e sto n ...1 4 6
I o w a T r u s t a n d S a v in g s B a n k —•
E s t h e r v ille .......................................................138
I r v in g T r u s t C o m p a n y
............................ 61

J o s e p h s J e w e le r s .............................................. 142

K a lm a n & C om p a n y , I n c ............................... 64
K n e e te r F u r s .......................................................126

1„

L a M on te, G e o r g e & Son ............................ 25
L a S a lle N a t io n a l B a n k ..............135, 136, 137
L e F e b u r e C o r p o r a t io n .................................. 19
L ife I n v e s t o r s I n s u r a n c e C o m p a n y
o f A m e r ic a ......................................................
8
L iv e S to c k N a t io n a l B a n k —
S io u x C ity ...................................................... 76

M a s s e y -F e r g u s o n I n c ......................................
7
M e r c a n tile T r u s t C o m p a n y ...................... 51
M e rc h a n ts N a tio n a l B a n k .................... . .2 -3
M id la n d N a t io n a l B a n k o f M in n e a p o lis 75
M o r r is s e y & Co., I n c .........................................126
M u rp h y , T h e T h os. D., C o .......................... 60
N

N a t io n a l B a n k o f C o m m e r c e T r u s t &
S a v in g s — L in c o ln ........................................ 93
N a tio n a l B a n k o f S ou th D a k o t a ........... 77
N a tio n a l B a n k o f W a t e r lo o ..................... 132
N a tio n a l B o u le v a r d B a n k ......................... 26
N a tio n a l E q u it y L ife I n s u r a n c e Co. ..1 3 6
N a t io n a l F id e lit y L ife I n s u r a n c e C o ...1 2 7
N eu & C om p a n y , I n c .........................................146
N o r th C e n tr a l C o m p a n ie s ............................ 133
N o r th e r n T r u s t C o m p a n y B a n k ........... 15
N o r th w e s t e r n N a t io n a l B a n k —
M in n e a p o lis .................................................... 68
Old S e c u r ity I n s u r a n c e C o m p a n ie s . . . . 55

O m ah a N a tio n a l B a n k .................................. 89
O m ah a P r in t in g C o ........................................... 136
P

P a p e r S to c k I n c o r p o r a t e d o f I o w a . . . . 10
P e o p le s B a n k an d T r u s t C o.—
C ed a r R a p i d s ................................................. 50
P io n e e r H i-B r e d C orn C o ..............................143

a
R

Q u a il & Co., I n c ....................................................120
R a h e l, J. C liff, an d C o m p a n y .................... 98
R e c o r d a k M ic r o film in g — E a stm a n
K o d a k C o m p a n y ........................................ 43
R e c o r d in g & S ta tis t ic a l C o m p a n y ..1 1 -1 2
R o w a n C om p a n y , I n c .......................................152
S

S a in t A n s g a r C itiz e n s S ta te B a n k . . . . 1 1 8
St. J o s e p h S to c k Y a r d s C o.—
S o u th St. J o s e p h ............................................102
St. P a u l T e r m in a l W a r e h o u s e C o ............. 20
St. P a u l T e r m in a l W a r e h o u s e
SH RDN H
S c a r b o r o u g h & C o m p a n y ........................... 17
S e c u r ity F ir s t N a tio n a l B a n k —
L o s A n g e le s ................................................... 27
S e c u r ity N a t io n a l B a n k — S io u x C ity ..1 1 5
S e c u r ity T r u s t & S a v in g s B an k'—•
S torm L a k e .................................................... 118
S h a w , M c D e r m o tt & C o .................................. 144
S ou th O m ah a S to c k y a r d s N a tio n a l
B a n k ................................................................. 97
S to r e y K e n w o r t h y C o m p a n y ..................... 128
S tu d ley , S h u p e rt T r u s t I n v e s tm e n t
C o u n c il ............................................................ 14
T
T a lc o tt, Ja m es, I n c .......................................... 13
T h o m a s E le c t r ic C o ......................................... 120
T o y N a tio n a l B a n k — S io u x C ity ............ 130
T w in s M o to r H o t e l ........................................ 62
U

U n io n
U n ited
U n ite d
U n ite d
U n ite d

B a n k a n d T r u s t C o.— O ttu m w a . 124
A m e r ic a n L ife I n s u r a n c e Co. ...1 0 1
C a lifo r n ia B a n k .............................. 107
S ta tes C h e c k B o o k C o m p a n y ... 52
S ta te s N a t io n a l B a n k — O m a h a . 86
V

V a lle y B a n k an d T r u s t C o m p a n y —
D es M o in e s .................................................... 113
V a lle y N a t io n a l B a n k o f A m e r i c a ......... 14
V a n H o r n e I n v e s tm e n ts , I n c ....................... 92
W

W a lla c e -H o m e s t e a d C o ....................................145
W a t e r lo o S a v in g s B a n k .............................. 153
W e lls F a r g o B a n k ........................................ 67
W e s te r n -S o u t h e r n L ife In s u r a n c e C o.. 60
W h it e - P h illip s Co., I n c ................................. 50
Z

Z ie g le r a n d C om p a n y , B. C ........................

N o rth w e ste rn Banker, O c to b e r , 1966

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Federal Reserve Bank of St. Louis

Iow a

if unk W om en E lect O fficers

News

155

members of the bank board and served
as a board member and also as vice
president.
Clone Swarts was elected to fill the
vacancy created by the resignation of
Dr. Wilson.

Sioux City AIB Classes
Instructors for the fall term Ameri
can Institute of Banking classes in
Sioux City include Edward L. Newell,
assistant vice president, Live Stock
National Bank; Dudley J. McGrath,
cashier, First National Bank, and Rob
ert Dannenberg, assistant vice presi
dent, The Toy National Bank. Classes
are being held at Morningside College.

C o st A n a ly s is

OFFICERS of the Iowa group of the NABW are, left to right: Margaret Hendry, Osage,
chmn.; Prudence Naber, Cedar Falls, co-chmn.; Jean McMahon, Forest City, secy., and
Wilma Weinkauf, Cresco, treas.

Miss Margaret Hendry of the Home
Trust & Savings Bank, Osage, has
been elected chairman of the Iowa
group of the National Association of
Bank Women. The election took place
at the group’s annual meeting in Ma
son City last month.
Named to assist Miss Hendry were:
Co-Chairman, Miss Prudence Naber,
auditor, First National, Cedar Falls;

secretary, Miss Jean McMahon, assist
ant cashier, Forest City Bank & Trust,
and treasurer, Mrs. Wilma Weinkauf,
secretary, Cresco Unio Savings Bank.
The Iowa group currently has 148
active members. Mrs. Marie Peebles,
assistant cashier, Central National
Bank and Trust Company, Des Moines,
is midwest regional vice president of
the national organization.

Completes Remodeling

Houghton State, states that the pro
posed acquisition would be through an
exchange of holding company stock,
par $100, for 1,530 of the bank’s 3,000
outstanding shares of capital stock,
also $100 par.
Hawkeye Bancorporation acquired
control of Lyon County Bank soon
after the corporation was organized
last February. The acquisition was a
cash purchase of the Rock Rapids
bank’s majority stock from Mr. Dun
lap.

Open house was held early in Oc
tober at the Farmers Savings Bank in
Danbury to mark the completion of an
extensive remodeling project. A day
was set aside for visiting bankers to
view the new facilities followed by an
open house for the public.
Exterior of the bank painted, a new
entrance constructed and other addi
tions were made to give the bank a
more modern look.
The interior was completely re
vamped, i n c l u d i n g new carpeting,
counters, ceilings and walls. New fur
nishings, with a completely new lay
out give the bank a completely new
face.
Furniture for the bank was obtained
through Koch Brothers, Des Moines.
Wilkins and Bussard, Des Moines ar
chitectural firm, aided in planning the
job.

Seeks Holding Company
For Iowa Banks
Hawkeye Bancorporation, which al
ready controls one Iowa bank, Lyon
County Bank, Rock Rapids, has ap
plied for Federal Reserve Board per
mission to become a registered bank
holding company through acquisition
of 51 per cent of a second bank, the
Houghton State Bank, Red Oak.
Paul D. Dunlap, president of both
Hawkeye Bancorporation and of the

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Federal Reserve Bank of St. Louis

KEEN INTEREST has been shown by
over 260 banks in the 7th Fed. District in
the Functional Cost Analysis programs
sponsored by the Fed during 1966. Shown
here at a recent Des Moines meeting are:
Allen G. Wolkey, spec. Fed rep., Chicago;
Art Frigaard, Iowa rep., Chicago, and
Floyd Whitmore, pres., Page Co. St Bk.,
Clarinda, and pres., Okey-Vernon Natl.
Bk., Corning. 62 bankers were present
for the Des Moines meeting.

BUYING
OR SELLING
A BANK?

E. D. Sutherland
E. D. Sutherland, former president
of the First National Bank, Manning,
died late last month. He had retired
recently from his active role in the
bank.

New Winfield Director
Dr. J. M. Wilson has resigned from
the board of directors of the Peoples
State Bank, Winfield, after serving 32
years.
Dr. Wilson was one of the original

W r it e o r ca ll co lle c t

365-9117

Area Code 319

REGINALD FIGGE ASSOCIATES
Confidential Consulting Service
Merchants National Bank Building
Cedar Rapids, Iowa

1882 ..................
to t he

banking

industry

C U R T IS lO O O IN C *
1 0 0 0 U n iv e rs ity A v e . • St. Paul, M in n . 5 5 1 0 4

N o rth w e ste rn Banker, O c to b e r , 1966

156

H o p e fu l E m p lo ye e

“ I would like to marry your daugh
ter,” said the young bank employee
to the bank president. “That is, if you
have one.”
H ir e d M a n ?

The city banker was checking out
an agricultural loan customer.
The banker, nodding toward a figure
in the farmyard, remarked, “ I sup
pose that’s the hired man.”
The wily farmer, tongue-in-cheek,
replied, “Well, that’s the first vice
president in charge of cows.”
Sad E n d

A couple was rummaging through
the attic of their home for the first
time in years, recalling fondly many
mementos long since stored away. As
they went through one box filled with
old sheet music, the husband noticed
a movement in the bottom of the box.
Carefully, he moved the sheets of
music aside and there was a very tiny
man, dressed in formal clothes with
black cape and flowing hair, busily
erasing notes from the music.
When the tiny man looked up and
saw the intruders he scurried for hid
ing in a corner of the box.
“ Say,” exclaimed the husband, “you
look like Mr. Beethoven!”
“ I am Beethoven,” replied the little
guy.
“Then what are you doing down
there erasing these notes?” asked the
man of the house.

o rthw
e ste rn Banker, October, 1966
DigitizedN for
FRASER
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Federal Reserve Bank of St. Louis

Beethoven replied, “ I’m de-composing.”
H o iv E l s e ?

First Indian: Where’s that settler I
just shot?
Second Indian: Right over there.
Just follow the arrow.

C O N V E N T IO N S
Oct. 16-19— 80th Annual Iowa Bankers
Convention, Fort Des Moines
Hotel, Des Moines, Iowa.
Oct. 18-21—National Association of
Supervisors of State Banks, 65th
Annual Convention, Hotel Utah,
Salt Lake City.
Oct. 23-26—92nd Annual A.B.A. Con
vention, San Francisco, Calif.
Nov. 6-9— NABAC, 42nd Annual Con
vention, J u n g H o t e l , N e w
Orleans.
November 6-10—Bank Public Rela
tions & Marketing Association,
Annual Convention, American
Hotel, Bal Harbour, Fla.
Nov. 13-15— 15th National Agricultur
al Credit Conference, Leamington
Hotel, Minneapolis, Minn.
November 13-16— 52nd Annual Fall
Conference, Robert Morris Asso
ciates, Shamrock Hilton Hotel,
Houston, Texas.
November 17-18—ABA 35th M i d Winter Trust Conference, Drake
Hotel, Chicago.
November 21-22— 19th Annual Tax
School, Iowa Bankers Associa
tion, K i r k w o o d H o t e l , Des
Moines.

W e ll-K n o w n

W illia m

Once a year the eighth grade of a
private school for boys presents a
classical play such as “Hamlet,” “ Mac
beth” or “Romeo and Juliet.”
A few days before the event was to
take place, the third-grade teacher de
cided she would prepare her class for
it.
“Does anyone know who Shake
speare is?” she asked.
“ Sure,” replied a pupli. “He’s the
guy who writes the eighth-grade play
every year.”
N o t L a t e ly

A poet-type, out meditating in the
country, noticed a farmer looking at
him curiously.
“Aha,” said the poet, “perhaps you,
too, have witnessed dawn’s golden red
fingers reaching across the eastern
heavens, the red hued islets floating
in their lakes of fire in the west, the
fleecy wisps of wind-chased clouds
scurrying across the face of the moon
at midnight!”
“No,” said the farmer, “not lately.
I’ve been on the wagon for over a
year now.”
T h a i s H is P r o b l e m

1967
January 30-31—ABA 19th National
Credit Conference, Hotel Utah
and Motor Lodge, Salt Lake City,
Utah.
February 5-8—ABA 48th Midwinter
Trust Conference, Waldorf-Astoria
Hotel, New York City.
March 2-4—Annual Convention, Inde
pendent Bankers Association of
America, Hotel Roosevelt, New

Two old friends got together after
many years and soon fell to discussing
their husband’s faults.
“We’ve been married 15 years,” one
woman said, “and every night after
dinner my husband complains about
the food.”
“How terrible,” exclaimed the other.
“Doesn’t it bother you?”
“Why should it bother me,” replied
her friend, “if he can’t stand his own
cooking?”

March 13-15—ABA 64th National Sav
ings Conference, Atlanta Marriott
Motor Hotel, Atlanta, Georgia.
March 20-22—ABA National Instal
ment Credit Conference, Conrad
Hilton Hotel, Chicago.
May 7-10—ABA National Automation
Conference, The Americana of
New York, New York City.
May 21-24—ABA 7th National Mort
gage Conference, The Mayflower
Hotel, Washington, I). C.
May 29-June 2— AIB National Con
vention, Statler Hilton Hotel,
Detroit.

“ If you could have two wishes,” a
girl said to her friend, “what would
they be?”
“Well,” replied the other girl, “ I’d
wish for a husband.”
“That’s only one wish,” said the
first girl.
“ I know,” r e t u r ne d the other
thoughtfully, “but I’d save the other
till I saw how he turned out.”

B u t o f C ou rse

" I f your bank hadn’t
offered us Bank-Care, I’d
really have been in trouble!

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Federal Reserve Bank of St. Louis

Banks in increasing numbers
are winning friends . . . and
earning profitable revenue . . .
with the BANK-CARE pro
gram.
BANK-CARE provides extra
cash to your depositor to use as
he sees fit when hospitalized.
It is available only through
banks for bank depositors.
BANK-CARE is sold only by
mail— we handle all the details
— no salesman calls on your
depositors.
Why wait for details? Write or
phone collect for complete in
formation: (402) 348-1333.

(¡■ink
111 l u l l

jlL iim ll
in

c tiiil

T. LESLIE KIZER, C hairm an of the Board
504 South 18th Street
O m aha, Nebraska 68102

**Yes! W e’ll see you at
the Iowa Bankers Convention,
October 16th to 19th, in Des Moines.
And we hope you’ll drop by and
pay us a visit, too!M

Jerry Nelson

Bob Buenneke

George Harnagel

Yes! We're here to help you get what you want

Io w a -De s M o in e s N ational Bank,
Sixth and Walnut • CH 3-1191

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

Mem ber Federal Deposit Insurance Corporation