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Oldest Financial Journal West o f the Mississippi
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No. 990

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Des Moines, Iowa

Small Businesses Increase Non-Bank Loans
Skyrocketing interest rates and
the battle for deposits have appar­
ently forced independent business
proprietors to seek short term
operating loans from sources other
than their banks.
This is indicated in the most
recent responses to the continuing
year long field survey conducted
by the National Federation of
Independent Business.
While banks are still the chief
source of financing, apparently the
banks are not able to make avail­
able all the capital needed. The
June results to the survey, com­
prising some 6,000 respondents,
show that approximately 49% re­
port a bigger business volume than
last year. In this category 100%
report they depend on their local
bank for their short term loan
needs, but in addition, 60% report
they are also being forced to seek
additional financial help from
finance companies, and 27% report
seeking such aid from their sup­
pliers.
Among this group, which re­
ports higher volume than last year,
the principal needs for capital
appear to be for the purpose of
carrying heavier inventory invest­
ments and heavier investment in
accounts receivable.
Perhaps reflecting higher costs
of goods, 59% who secure aid from
banks, finance companies and sup­
pliers, have had to increase inven­
tory investment, while 62% have


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Federal Reserve Bank of St. Louis

had to expand investment in ac­
counts receivable.

Higher SBA Ceiling
Higher ceilings have been set
by the Small Business Adminis­
tration on direct loans and partici­
pation loans. The ceiling on direct
loans, made by SBA to eligible
small business concerns, has been
raised from $50,000 to $100,000.
The ceiling on participation loans,
bank loans guaranteed up to 90%
or $350,000 by SBA, has been
increased from $ 100,000 to $ 150,000.
SBA Administrator Bernard L. Bou­
tin said the higher ceilings are
“ in line with SBA’ s objective of
providing every possible assist­
ance to small business’ ’ and should
help small firms during the current
tight money period.

Up Credit Bank Rate
Congress made another conces­
sion to the scarcity and cost of
credit last week by authorizing
the federal intermediate credit
banks to pay higher interest for
the money they borrow.
The House completed action
by voice vote on a Senate-passed
bill abolishing the 6% ceiling on
debentures the 12 banks sell to
raise funds to finance institutions
making loans directly to farmers
and ranchers. The bill now goes
to President Johnson.
The banks must sell debentures
by September 19 to pay off about

September 12,1966
$300 million in obligations coming
due in October.

N ATIO NAL NEWS
WASHINGTON, D.C.: Comptroller of
the Currency James J. Saxon has
announced
three appointments.
Abraham A. Dash has been named
special assistant to the Comptrol­
ler to coordinate litigation policy
and handle special investigations.
J. James Gallagher has been ap­
pointed deputy administrative as­
sistant to the Comptroller. Joseph
M. Ream has been made regional
administrator of national banks in
South Carolina, Georgia and Florida.
ST. LOUIS: Dismissal of a Justice
Department antitrust suit against
the merger of Mercantile Trust
Company, N.A., and Security Trust
Company in St. Louis, has been
requested by Comptroller of the
Currency James J. Saxon. Grounds
for the dismissal motion are ex­
pected to be that the Bank Merger
Act of 1966 now is the only anti­
trust law applicable to bank mer­
gers. The case is pending before
a U. S. District Court.
WASHINGTON, D.C.: The nation’ s
savings and loan associations ex­
perienced a $1.4 billion net sav­
ings outflow during July, the United
States Savings and Loan League
has reported. At the same time,
mortgage loans madebyS&L’ s were
down almost 45% from a year earlier.
(Continued on back page)

half a million dollars will be avail­
able for loans to needy students in
23 Nebraska colleges this fall.
University of Nebraska is expected
to qualify for about one-third of
the total. Lt. Gov. Nominee Ross
Rasmussen
contends that the
federally-guaranteed interest rate
of 6% is too low in the current
tight money era.

THE
BANK
FOR
PERSONAL
SERVICE

IN SIOUX CITY.

MINNESOTA NEWS

SECURITY NATIONAL BANK
Member Federal Deposit Insurance Corporation

IOWA NEWS
AUDUBON: Funeral services for
Delbert C. Perley, 69, cashier of
the First State Bank, were held
last week. He died of a heart
attack in a local hospital where
he had been a patient for nine
days.
DECORAH: The 4-H baby beef
champion at the Winneshiek County
Fair was purchased again this
year by Decorah State Bank. Price
for the 1,050 pound Angus was
$52 per 100 weight.

the 30th anniversary dinner party
held by the bank last week. R. H.
Isensee, president of the bank,
presided. Frances Dormedy, assist­
ant cashier, was presented a s il­
ver coffee service, having been
employed by the bank for the
entire 30 years.
NEVADA: LeRoy Hansen has been
named cashier of the Nevada Na­
tional Bank. He will fill a vacancy
left by the resignation of Leslie
Henderson. Mr. Hansen has been
employed by the Federal Land
Bank for the past 12 years.

DES MOINES: Robert H. Bush,
president of the Federal Home
Loan Bank, headquartered in Des
Moines, died of a heart attack in
Washington, D.C. while attending
the American Legion Convention.

RICEVILLE: First National Bank
has elected Keith A. McKinley,
attorney for Mitchell county, as a
member of the board of directors,
according to Rex J. Willis, pres­
ident. He succeeds the late Louis
J. Krall.

JEFFERSON: Ron Searcy, assist­
ant cashier, Home State Bank,
won the title of “ Cookout King of
the Iowa State Fair.” His special­
ty is “ butter-wine Kabobs” built
around sirloin steak.

STACYVILLE: Anton J. Hemann,
a director of the Stacyville Sav­
ings Bank since 1939, has been
elected president and chairman of
the board to succeed the late Fred
Pitzen.

MASON CITY: A total of 275 stock­
holders and employees attended

Call
Wayne Thorndyke

for ...
P ersonal Attention
to A ll Y our
C orrespondent N eeds

N E B R A SK A NEWS
LINCOLN: Annual Correspondent
Bank Conference sponsored by the
First National Bank and Trust
Company, Lincoln, is to be held
this week, Friday and Saturday,
September 16-17.
LINCOLN: State Banking Director
Byron Dunn reports that over onef

DISTRICT MEETINGS start in
Minnesota on September 12 with
District 1 in Rochester. Others are
as follows: September 13, District
2, Mankato; September 14, District
7, Montevideo; September 15, Dis­
trict 3. 4. 5, Hopkins House, Hop­
kins; September 19, District 6,
Little Falls; September 20, Dis­
trict 9, Bemidji, and September 21,
District 8, Hibbing.
AUSTIN: Ray Dieterich has been
named manager of the insurance
department of the Austin State
Bank.
CANNON FALLS: Ed Jaspers, for­
merly with First National Bank,
Eden, North Dakota, has been elec­
ted cashier of the First National
Bank here.
CLOQUET: Allen Spafford, 70,
director of the First National Bank
here died last week.
HANCOCK: Dean Leighton has
joined the Hancock State Bank. He
has been in the finance field for
20 years, coming from Huron, South
Dakota.
MINNEAPOLIS: Floyd Simmons, 67,
retired vice president, Northwestern
National Bank, died last week. He
retired in 1964 after 36 years with
the bank.
ROCHESTER: J. Robert Kelly has
joined the Olmsted County Bank &
Trust Company as a vice president,
He has been with Northwestern Na­
tional Bank, Minneapolis. He will
be in charge of commercial-new
business loans.

The myriad tools of modern banking
. . . and men who know how to use them .
Good reasons w hy over half the b an ks in Iow a are
M N B correspondents

CALL

402

341-8765


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Federal Reserve Bank of St. Louis

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L e n B r o u lik
V .P . T r a n s it a n d B o o k k e e p in g

AREA CODE

Member Federal Deposit
Insurance Corporation

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[N O llO MKEMBERaF.D!6
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T H E F U L L S E R V IC E B A N K F O R T H E B A N K S O F IO W A

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________________

1

This announcement is neither an offer to sell nor a
solicitation o f an offer to buy any o f these securities.

NEW ISSUE

August 15, 1966

EXECUTIVE DATA
SYSTEMS, INC.
1 7 0 ,0 0 0 Shares Common Stock
Offering Price *5.00 Per Share
Executive Data Systems, Inc., proposes to engage in the business o f fur­
nishing computer and data processing services to banks, hospitals and
other prospective customers from its offices in Cedar Rapids, Iowa. Such
services will include the use o f a large, centrally located computer facility
employing an on line real time/time sharing computer as well as the adap­
tation o f standard and custom designed systems and programs to needs
o f customers.

This offering is made only by the Prospectus. Copies o f the Prospectus
may be obtained from the undersigned in states where the undersigned
may lawfully offer these securities. These securities will be offered by
Growth Capital Corp. only in the State o f Iowa.

CORNLAND, INC.

GROWTH CAPITAL CORP.

3839 Merle Hay Road
Des, Moines, Iowa
Phone 515r276-1597

Merle Hay Mart Building
Des Moines, Iowa
Phone 515-276-1598

EXECUTIVE DATA SYSTEMS, INC.
Suite 112, Executive Plaza
Cedar Rapids, Iowa
Phone 319-365-9433
r

Please send me a copy of the prospectus describing the
Common Stock of EXECUTIVE DATA SYSTEMS, INC. nwb
Name__

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■

Address
City

State.
i

Supplement to Northwestern Banker of September 12, 1966

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Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis

*

ROSEVILLE: Donavon J. Fisher
has joined the Roseville State
Bank, and will become active in
the lending area of the bank. He
was executive vice president of
Century Capitol Corporation.

W e're here to help
you get what you want

IOWA-DES MOINES

WADENA: First National Bank held
open house in its new building
recently. Construction was com­
pleted in July.

NATIONAL BAN K
Dale Luckow

WATERTOWN: American State Bank
observed its 50th anniversary re­
cently.

Holland

ides your some are a couple
o will help you
ndent services

V

»alleros will be
territory more

SOUTH DAKOTA NEWS
HURON: Plans should be made
now to attend the Installment Cred­
it Conference sponsored by the
South Dakota Bankers Association
in Huron on Wednesday, Sept. 21.

NORTH DAKOTA NEWS
VALLEY CITY: American National
Bank has elected K. B. Cummings
as president and Gerald L. Zinck
as vice president. The bank an­
nounced that R. M. Hougen will
retire as president after serving
for 44 years. Mr. Cummings joined
the bank in 1958 and Mr. Zinck
joined the bank in 1956.

Collection probvith us for fast
if excess or
tions are keepi helping your
ers, either ag­
ir commercial,

WATFORD CITY: The First Inter­
national Bank of Watford City has
received approval from the state
banking board to establish a pay­
ing and receiving office in Alex­
ander.

COLORADO NEWS
AIR ACADEMY: Five retired U. S.

J3T GUN” ON Air Force generals have been
Write or phone named to the advisory board of
*
4 6A 1-1850

the new Air Academy National
Bank. They are: Benjamin W. Chidlaw, John K. Gerhart, Laurence S.
Kuter, Emmett O’ Donnell, Jr., and
Dean C. Strother. All were full or
four-star generals.

fSt.L ouis

DENVER: Kent O. Olin, vice pres­
ident, Denver U. S. National Bank,
has been promoted to officer in
charge of the correspondent depart­
ment. He succeeds Ray C. Harper,
who has moved to Sioux Falls,
South Dakota, to join a financial
holding company.
DENVER: Bids forthe construction
of the Denver branch building of
the Federal Reserve Bank of Kan­
sas City have been submitted to
the Fed in Washington. Apparent
low bid was $5,220,000 submitted
by Hensel Phleps Construction of
Greeley. Separate contracts will
be awarded later for the bank’ s
vaults and security equipment. The
new building will be constructed
on 16th between Arapahoe and
Curtis Streets.

MONTANA NEWS
GLENDIVE: Henry H. Dion has re­
signed as vice president of the
First National Bank because of
the press of private business, ac­
cording to T. A. Vashus, executive
vice president.
The board has elected Ted Sell
as vice president and cashier;
Thomas W. Hughes as vice pres­
ident, and Jack E. Dobson as as­
sistant vice president.
Mr. Sell is operations and per­
sonnel officer; Mr. Hughes works
with agricultural lending and with

commercial credit extension, and
Mr. Dobson is manager of install­
ment loans and the real estate
department.
HELENA: Joseph B. Reber, pres­
ident of the Reber Company, has
been elected to the board of direc­
tors of the First National Bank and
Trust Company here, according to
Nels Turnquist, president. Mr. Re­
ber is engaged in the contracting
business in several western states
and Alaska.

WYOMING NEWS
LARAMIE: More than 1,500 people
visited the new building recently
completed by the American Nation­
al Bank when a special open house
was held recently.
CHEYENNE: M. E. Price, president
of the American National Bank,
has been named promotional chairman for the 1966 Laramie County
United Fund Drive.

Make Plans NOW to Join...

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The NORTHWESTERN B A N K E R
post-A.B.A. convention 10~day
HAWAIIAN TOUR

CHILES & COMPANY
M em ber, M idwest Sto( k Exchange

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS
ederal Deposit
nee Corp.

Member Federal Deposit Insurance Corporation

F. E. DAVENPORT & CO .


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O M AHA

M U N IC IP A L A N D C O R P O R A T E B O N D S
L IS T E D . U N L IS T E D A N D L O C A L S T O C K S

412

Farm Credit Building, Omaha, Nebraska
Phone 546-6677

68102

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KEEP US IN MIND

“ SERVIN G B A N KS AND BANKERS SINCE 19 48”

Bankers Service

WE’RE EASY TO FIND

283*2421
BANKERS TRUST COMPANY
Member Federal Oeposit Insurance Corporation

Homer Jensen

Largest Locally-Owned Bank in Des Moines

Bonds Down Sharply D uring August
The investment firm of Salomon
Brothers & Hutzler said in its
monthly “ Bond Market Review”
that prices in the municipal bond
and Government issue sectors of
the bond market were down sharply
during August. It explained that
since the escalation of this coun­
try’ s Viet Nam military effort in
July, 1965, the price declines in
key sectors of the market have
totaled about 12 points for long
Governments and 17 points for
long municipals. However, at the
very close of the period there was
a substantial rally.
In the municipal bond sector,
price declines were extremely large
and brought prices to their lowest
levels since 1934, when taxes
were lower, observed the review.
The volume of municipals thus far
during the second half has been
markedly lighter than during the
first. August volume was $745 mil­
lion and July volume $630 million
as compared with a first-half aver­
age of over a billion dollars month­
ly. In contrast to the corporate
calendar, the September schedule
of new municipal offerings has not
built up appreciably and remains
moderate.
The decline in Government
bond prices accelerated as August
progressed, and was especially
pronounced at mid-month when
Corporate-Government yield spreads
widened to record levels, said
the firm.
During the month, money mar­
ket rates moved generally higher,
it was noted. For the first time
sizeable transactions in Federal
funds were consummated at 6%,

although the average effective
rate for August was somewhat
below this level. And contrary to
most other months this year, Treas­
ury bills rose more in yield than
most other money market instru­
ments.
Contributing to the unfavorable
tensions in the bond market during
August, Salomon Brothers & Hutzler
commented, were immediate demand
and supply pressures as well as
bearish expectations. In addition,
commercial banks raised their
prime loan rates for the second
time in two months; some large
banks stepped up their selling of
municipal obligations; the Federal
Reserve renewed its effort to slow
down bank credit expansion by
again raising Reserve requirements
on time deposits; the Fed remained
unwilling to increase the maximum
rates permitted on certificates of
deposit, thereby raising fears of a
further liquidity squeeze.

N ATIO NAL NEWS
(Continued from front page)
For the first seven months of
1966, S&L’ s had a net gain in
savings of $717 million compared
to $3.7 billion during the same
period in 1965. Mortgage loans,
meantime, totaled $11.5 million,
down $2.2 million from the 1965
pace.
ST. PAUL, MINN.: Four top inde­
pendent bankers and a member of
the U. S. House of Representatives
banking and currency committee
will headline the 5th annual con­
vention of the Independent Bankers
of Minnesota, September 28-29 in

Proud of our heritage of service to
Iowa banks, we#re building at 6th & Locust
for an even greater tomorrow.
/jT n ^

__________ CORPORATION__________
BANK STOCK BROKERS
BANK PERSONNEL
1301 R 8T B LD G .
PHONE 515-244-3113
OES MOINES. IOWA 50309

Hotel Radisson, Minneapolis. They
are: Rep. Paul H. Todd of Mich­
igan; William C. Clary, Jr., pres­
ident, The Bank of Toccoa, Ga.;
Paul Jones, president, Glenview
(111.) State Bank, and Jay C. Leff,
president, Fayette Bank & Trust
Company, Uniontown, Pa.

L A T E NEWS
MIDLAND, MONT.: James A. John­
son has been named vice president
in the commercial loan department
at Midland National Bank. He has
been assistant vice president at
First Bank Stock Corporation,
Minneapolis, assigned to contact
work with Minnesota and Wisconsin
affiliates. From 1960 to 1964 he
was an assistant vice president of
the First National of Helena.
CALLAWAY, NEBR.: Lewis F.
Johnson, 82, presidentof the Seven
Valleys State Bank, died Septem­
ber 5 at a rest home. He had been
a banker for 20 years.

WANT ADS
Rates 25 cents per word per
insertion. Minimum: 12 words.
NORTHWESTERN BANKER
306 15th St., Des Moines, Iowa
HELP WANTED
In «developing an all request mail­
ing lis ts —based on Trade Area
Surveys - that can help you become
more competitive for the farm and
ranch business in the area served
by your bank. The Farm Picture,
P.O.Box F, Urbana, Illinois 61801.
BANKS WANTED
Hard-working staff of energetic
Chicago Loop bank desires to serve
more banks in the midwest better
than they have ever been served
before. This is not a lip-service
ad. We’ ll perform! Call Max Roy in
Iowa City at 338-5224. Or phone
us direct at La Salle National Bank,
135 S. La Salle Street, Chicago,
Illinois 60690. STate 2-5200 (area
code 312). Complete trust services.
Member of Federal Deposit Insur­
ance Corporation, of course!

NATIONAL BANK AÑD TRUST COMPANY
M em ber Federal Deposit Insurance Corporation


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Federal Reserve Bank

Rk Gross Co
BANK PLANNING
Waterloo, Iowa