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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MNB’S MODERN APPROACH TO BANKING . . . ANOTHER REASON WHY OVER HALF OF ALL IOWA BANKS ARE MERCHANTS NATIONAL CORRESPONDENTS Here are models of some of the IBM units to be included in M NB’s Electronic Datacenter. The Datacenter will be installed to provide even faster and better service to our customers. It will also be available to business, industry, and the professions. And whatever your needs, you can depend on Merchants N ational for the m ost modern, accurate, and prompt service. Your call will be welcomed. No. 890. Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines 9, Iowa. Subscription, Digitized for35c FRASER per copy, $3 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under the Act o f March 3, 1879. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 mmmmmmmmmmmmmaaKm How A Midwestern Bank Reduced Float $100,000 Daily Northern Trust Company specialists are frequently called upon to assist correspondents in reviewing their op erating procedures. Many instances can be cited where this assistance has resulted in substantial cost reductions and improved operating efficiency. Recently, for example, a team of Northern Trust officers analyzed the check handling operations of a M id western correspondent bank. Their recommendations resulted in speeding check collections and reducing float by more than $100,000 daily—a substan tial increase in funds available for the bank to invest. Other economies were realized at the same time by eliminat ing unnecessary operations and by sim plifying the bookkeeping procedures. Would an operations survey help yo u r bank? You are invited to discuss this service— and other advantages of being a Northern Trust correspondent —with one of our officers. < 5 * NORTHERN N O R T H W E S T LA S A LLE In th e H e a rt of th e https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F in an cial D is tric t C O R N E R AND M O N R O E • RUST C h ic a g o , Illin o is . BANK F in a n c ia l 6 - 5 5 0 0 . M e m b e r F. D . I. C. Northwestern Banker, Septem ber, 1961 E jPfe. B ||l 1 K (§[ ^ l|P |jÌ r mmm H Wê, ~‘ p Wf. JJI8®0 - ®8 'filili ^Ë^±æ^KaM&SS8a jlf8 fgpææS^gj^^ JJ H ||| lllli, ^p JRk. B f || ■ é^ 00m^èk B W mmm. . .s^vv-^V^ ^WmÊ: ap ^ ^*g A banker, more than most men, expects his money’s worth. Today, space is money. Especially the space you pay for in your new banking quarters. With building costs still rising, with the demand for bank services booming, no prudent banker can afford the extravagance of space that does not add to efficiency and profits. m o re divid en d s per sq u are foot From more than 3,500 financial projects, Bank Building Corporation has developed advanced techniques of space engineering that utilize every square foot of new quarters area. Our planners and designers specialize in eliminating space-waste. At the same time, they build maximum efficiency and flexibility into both public and operational areas . . . at minimum cost, initially and long-range. This practical application of specialized experience is another big reason why more bankers call in Bank Building first. Space engineering—assurance of new quarters profit r/w. ^ OF AMERICA ST. LOU IS, 1130 H A M P T O N A V E N U E N E W Y O R K • C H IC A G O . S A N F R A N C IS C O • D E T R O IT • A T L A N T A • A U STIN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 O N T H E C O VER Broad smiles were the order of the day for the six Council Bluffs young sters pictured on the front cover, and with good reason. Two of their num ber had just raced off with first and second place in Class B of the an nual Soap Box Derby held recently in Omaha. Winner was Bob Shockey, seated in his winning racer which took five months to build. Second place went to Bob Spetman, extreme right. The other four lads, from left, are: Michael Dali, Fred Bergstrom, Bill McDowell and Steve Morris. The two winners have more than the name “ Bob” in common. Their fathers are Ed Spetman, Jr., executive vice president, and E. L. Shockey, trust officer, both with Council Bluffs Savings Bank. Young Shockey had expert help from an old hand at build ing wooden racers—his grandfather, Lew Ross, president of the bank. The two boys won first and second in a field of 57 racers. lic iir E d ito r “ Unusual Interest” “ This is a letter of appreciation. Appre ciation for the excellent coverage given by the “ Banker” to our announcement made last week. “ Y ou are experts on the Iowa economic scene, but you made it a point to acquaint yourselves thoroughly with the new interests that are appearing in our area through the Central National Bank. You were thus able to prepare an article that will be of unusual interest to all segments of the Iowa econ omy. This represents a tine contribution to the future of our state! “ W e were amazed that the article was published almost simultaneously with the local newspaper and well ahead of the na tional financial papers.” Oldesl Financial Journal West o f the Mississippi for your SEPTEMBER, 1961, reading 67th Year No. 890 EDITORIALS 24 A c ro ss the D esk fro m the P ublisher FEATURE ARTICLES 5 On the Cover 5 D e a r E d ito r 19 F ro n tisp a g e — B ack to School! 27 B a n k ers Do L ike H u m o r !— James H. Clarke 28 B e tte r R eserve A cco u n t M a n a g em en t— Charles G. Wright 30 H o w to A p p r a ise and V a lu e F a r m L an d — Dr. William G. Murray 32 A Sound B a sis f o r M a k in g F e rtilize r L oa n s — Paul L. Carson 34 F ocu s A tte n tio n on F ed C red it Policies A s Bond Y ie ld s G ain— . Raymond Trigger INSURANCE 49 H o w A g e n cie s Increase Office Efficiency — A N orthwestern B anker Survey STATE BANKING NEWS Robert K . Goodwin, Chair man, Central N ation al Bank $ Trust Co., Des Moines, Iowa. M innesota N e w s T w in C ity N e w s 65 66 South D a k o ta N e w s N o rth D akota N e w s 69 71 Colorado N e w s W y o m in g N e w s M on ta n a N e w s 77 N e b r a sk a B a n kers Convention P ro gra m 78 O m ah a N ew s 73 74 83 84 89 N e b ra sk a N ew s L incoln N ew s Iow a N ew s 75 98 D es M oines N e w s OTHER FEATURES “ Two Sound Programs” “ The August issue o f the N orthwestern B anker, certainly has gone all out to pro vide all bankers with two very sound pro grams, namely, internal audits and the ar ticle by H . D. Kosman on ‘Sound Loan A d ministration.’ Both of these articles stress controls which today’s banking in a super market competition require for the safety of the bank and the benefit of the deposi tors. “ Because of the number of articles in this issue that are so vitally important to our district agency supervisors and regional office managers, I would like to obtain three dozen extra copies for their use.” E. G. Webbies, Assistant Secretary, Hawkeye-Security Insurance Company, Bes Moines, Iowa. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 104 T he B a n k e rs’ M a rk e t P lace NORTHWESTERN BANKER 306 15th S treet, Des Moines 9, Iow a, Telephone CHerry 4-8163 Publisher Clifford De Puy Associate Publisher Malcolm K. Freeland Associate Editor W a lte r T. Proctor A d vertisin g A ssistan t Elizabeth Cole Associate Editor Doyle Minden Circulation D epartm ent Lena Sutphin Field Representative AI Kerbel Editor Ben J. H aller, Jr. A u ditor M argaret Redding Field Representative Paul Masters Frank P. Syms, Vice President, 550 Fifth Avenue, New York 36, JUdson 2-7126 Milton P. Bock, Vice President, 654 Baker Building, Minneapolis, FEderal 6-5357 DE PUY PUBLICATIONS: Underwriters Review, Northwestern Iowa-Nebraska Bank Directory Banker, No rthwestern Banker, September, 1967 6 Hit h Century trAf N E W LOOK at First N a tl., Tulsa, includes tlie remodeled fourth floor commercial loan and executive office area at left, and the redecorated director’ s room at right. President F. G. of a major remodel COMPLETION ing program that brings a distinc tive new appearance to all its banking areas was announced by F. G. McClin tock, president of the First National Bank and Trust Company of Tulsa. The remodeling, which has been car ried out over a period of 12 months, McClintock, right, and Sr. Y .P . John L. Robertson are shown as they inspect the new quarters, is the first program of its type since the First National building was opened in 1950. Mr. McClintock said the remodeling, involving the lower lobby, first floor, and third and fourth floors, will pro vide additional customer facilities in the bank’s growing departments. SPECIAL CHECKS There are possibly a half million business firms in the country who buy their checks direct from printers without consulting their banks con cerning format. These special checks are commonly referred to as "uncon trolled items,” probably because banks are not involved in their pur chase. Under MICR, however, banks have a vested interest in these checks and naturally want to exercise some control with respect to design. The large business organizations are familiar with MICR requirements and in all likelihood have already redesigned their checks to accom modate encoding. The medium sized firms, for the most part, still face the problem o f redesign and this group could be more cost conscious. This is where considerable expense can be saved for both the customers and the banks, if their so-called "special checks” can be switched to standardized forms available from the catalogs of check printers. W e display in our catalog a rather large selection o f voucher and pay roll checks which could— in most instances at lower cost —serve the needs o f those who now use special checks. For the convenience o f bank people who contact corporate ac counts, we have prepared two small booklets picturing these checks and we would be pleased to supply as many copies as may be needed to banks who now are engaged in ap proaching their customers on the question o f check redesign. If you wish any copies o f these booklets, simply write to our Advertising Department at 4435 West Belmont Avenue, Chicago 41, Illinois. One o f the side benefits o f the M IC R program will be greater standardization o f check forms. Ever since 1913 the banking fraternity has been trying to standardize and sim plify check layout, but at no time in the past has there existed such a need to accomplish this. N ow the need exists and the opportunity is here to eliminate “ headache checks.’’ There still is room on the check for a reasonable display o f individuality but it can be worked into the stand ard layout without affecting the check’s value as a source document. If we can be o f help in standard izing the check forms o f your customers, please call upon us. Manufacturing Plants a t: c l if t o n , norw alk , p a o l i, CLEVELAND, DETROIT, INDIANAPOLIS, CHICAGO, KANSAS CITY, ST. PAUL, D ALLAS, CIIATSWORTH, PORTLAND Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in Tulsa As part of the remodeling program the bank carried out a decorative mo tif for the executive office area that includes art objects dating from the 16th century that represent the cul ture of China, Japan, the Incas and Aztecs, and other early civilizations. The installment loan department was moved from the lower lobby to the first floor. This move permitted expansion in the lower lobby of the trust department, whose volume of as sets has doubled in the past five years. Trust, tax, and safe deposit depart ments now occupy the entire lower lobby. W ith the move of the installment loan department to the first floor First National also created a customer serv ices department, located off the build ing lobby, to provide additional service and information for customers coming into the building. In order to increase the facilities of the credit and central files depart ments they were moved from the fourth to the third floor. The space vacated by these depart ments on the fourth floor provided additional room for the executive of fices and commercial loan officers, and for the discount and collateral depart ments. As part of the fourth floor remodel ing a third conference room was add ed, and the directors’ room was re decorated. St. Louis Prom otions George J. Ries has been elected vice president and Gerald K. Sandweg has been named assistant vice president by the Mercantile Trust Company, St. Louis. Mr. Ries will head the investment account management division of the trust department. Mr. Sandweg, who has been assigned to the trust admin istrative department, will join Divi sion F, banking department. TH E LITTLE THINGS A thumb in a dike . . . a lantern in a church steeple — these are m em orable little things that em bellish and b ecom e im portant to history and folklore. T he com m ent w e receive from correspondents about our attention to the little things — the unusual, out-of-theordinary problem s — is one of the pleasantest aspects of our business. At H anover, correspondent banking is a m ajor service. W e are organized to work constructively w ith our corre spondents in every transaction, how ever large, how ever small. THE HANOVER BANK NEW YORK Member Federal D eposit Insurance Corporation Foreign Transactions • Portfolio Review • Snap-Out Carbon Checks • Air Mail-Pouch Loose • Letters of Credit • HANCORE Plan • Credit Information https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September, 1961 //& here-the world's first ABA cod& Designed for bankers by bankers! Our new ABA coded electronic Travelers Cheques, recently introduced in our California branches, will soon simplify and speed your whole cheque-selling operation. Within a few months they will be available to all banks—bringing you these important advantages: Faster handling — New ABA encoding is designed to expedite clearances and handling by other banks. Gives quicker claim service. Provides sim plified vault register controls and an improved automatic replenishment system! •* „ NAttOMr * ^ V c is c W ^ ^ s o c S S S iU io O/ANM^' found I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis electronic Travelers Cheque! Faster selling —Package and loose cheques now may be sold from one single inventory. Simplified new applications—with no carbons or staples — save time and work. Exclusive Sellers’ Kit containing 7 different cheque packages increases operating efficiency. Greater customer appeal—Handsome new wallets in two styles, two colors. The first completely integrated electronic Travelers Cheque operation — bringing you the easiest cheques in the world to sell! Offer your customers a choice of new red or blue wallets. rtew compact Sellers’ Kit holds everything—applications, cheques, wallets. BANK OF AMERICA TRAVELERS CHEQUES "Money only you can spend” For further information on Bank of America Travelers Cheques, write Travelers Cheque Department, Bank of America, San Francisco 20, California. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 LaSalle Prom otions The LaSalle National Bank, Chicago, has named Arthur W. Glennie as vice president and comptroller; William P. Kennedy as cashier, and Edward B. Hamilton as assistant comptroller. 7 E . a » ' U 2 ^ 311* A. W . G L E N N I E W . P. K E N N E L L Y Mr. Glennie, who formerly served as vice president and cashier, joined the bank in 1948 as an assistant vice president. Mr. Kennedy, who has been an as sistant vice president, joined the bank in 1946. He is a graduate of the Stonier Graduate School. Mr. Hamilton, who has been in the com ptroller’s division, came to the bank in 1946. M oves Trust Departm ent Chemical Bank New York Trust Company, third largest bank in New York, plans to move its Personal Trust and Trust Investment Department from 100 Broadway to the 50-story of fice building at 277 Park Avenue, upon which construction is to be started within a few months by Stahl Equities Corporation. Today’s Costs Tomorrow First-Half Earnings Told We, who make check paper, view with enthusiasm the Bank Automation Program. It has given us prob lems but it promises us a great future. The machines that w ill autom atically handle the great volume of checks in use today guarantee the main tenance of checking account costs at a lower level than otherw ise possible, and we think this w ill in crease the use of checks. It is our responsibility to give you paper with both protection against alteration and counter feiting, as well as the qualities necessary to meet the machine demands. THE WAVY LINES ® ARE A LA MONTE TRADE-MARK GEORGE LA MONTE & SON Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • NUTLEY 10, NEW JERSEY Earnings reports for the first six months of 1961 have been reported by three major equipment companies. B u r r o u g h s Corporation reported $184,856,000 revenue, compared with $201,501,000 last year. Consolidated net earnings for the period were $3,185,250 against $5,043,000 in the first half of last year. Sales of ad products and services of The National Cash Register Company totaled $238,846,485 for the first half of 1961, an all-time record for the period and an increase of 16 per cent over the $205,777,334 reported for the first half of 1960. Net income for the pe riod was $8,135,853, compared with $7,588,169 for the first half of last year. Diebold, Inc., earned $939,641 in the first half of 1961 after provision for Federal and Canadian income taxes. These earnings are about 10 per cent more than the $856,995 earned in the first half of 1960. Orders entered were about 10 per cent ahead of last year. 11 the e/fcatU m al 3 1 5 ... new com puter concept for banks! total systems c o n c e p t. . . m ultiplexing of sorters . . . program m ing support b a se d on experience in every banking departm ent The NATIONAL* 315 EDP System is fully capable of processing ALL of your bank’s On Us Deposit Accounting . . . Time Deposit Ac counting . . . Transit and Clearings sorting, listing and distribution . .. Loans & Discounts . . . Mortgage and Escrow Accounting . . . Per sonal & Consumer Credit Loans . . . Trust Accounting . . . General Ledger and Daily Statement of Condition. FOR THE FIRST TIME a random m em ory device can be u ti lized for both random and sequential processing. FOR THE FIRST TIME the m e m ory of a random access device can be removed an d a new m em ory m ounted in ap p ro xim a tely thirty sec onds. FOR THE FIRST TIME it is econ om ically practical to em p lo y m u ltip le random access units in one system . Before you invest in electronics, call your nearby National office, or write to National’s E D P Sales Division at Dayton 9, Ohio * T R A D E M A R K REG. U .S . PAT. OFF, THE NATIONAL CASH REGISTER COMPANY • Dayton 9, Ohio 7039 O F F I C E S I N 121 C O U N T R I E S • 77 Y E AR S O F H E L P I N G B U S I N E S S S A V E M O N E Y ELECTRONIC DATA PROCESSING ADDING MACHINES.CASH REGISTERS ■T " ■-v . ■■■.>■ - :: ACCOUNTING M ACHIN ES. NCR PAPER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September, 1961 Twice as useful! N ew R e c o r d a k RELIANT 5 0 0 M icrofilm er features unique interchangeable film units...lets 2 (o r m ore) departments keep separate film records the way they would with individual microfi/mers. Bankers tell us it’ s almost like getting an extra microfilmer for the price of an accessory film unit. Takes only a second to slide out one unit . . . slide in another for a different job, a differ ent department, or a different branch. Not only is this microfilmer more useful, it is also the fastest for general office use . . . speeds the work of all departments. For example, in one minute your Transit Department can micro film the fronts and backs of 500 checks . . . or your Bookkeeping Department can photograph 186 statements. And in the same high-speed O n e R E L I A N T 500 M icrofilm er seems like tw o! Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 automatic operation the film record is indexed and the originals can be cancelled or endorsed, using an accessory endorser. Write today for informative folder describing the new R e c o r d a k R E L IA N T 500 M icro filmer in detail . . . or better still, call in your local Recordak representative to show you all the advantages the new R E L IA N T 500 offers over older and slower microfilming equipment. Recordak Corporation, 415 Madison Avenue, New York 17, N. Y. (S ubsidiary o f Eastman K odak C om pany) o r ig in a t o r o f m o d e rn m ic r o film in g — n o w in its 34th year IN C A N A D A con tact Recordak o f C ana da Ltd., Toronto https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis No rthwestern Banker, September, 1961 14 of a paper bearing the position which is discussed briefly. The switch is thrown again and the picture of the room at 399 Park Avenue is returned. From that point, the meeting con tinues on its normal question and an swer basis. The two rooms are equipped identi cally. In front of the conference ta ble are two 27-inch monitor type tele vision sets. Above and between the two sets is the camera. Microphones are located on the conference tables. To the rear of the room is a special unit containing a camera for televis ing documents under discussion. In separate areas of both the Downtown and Uptown headquarters buildings are control panels for monitoring and adjusting the signals. Hunts U ses U n set! C ircuit T V V IE W IN G the TV camera and monitors at 399 Park Avenue are, le ft to righ t: Robert L. Hoguet, Jr., sr. v .p .; George C. Scott, sr. v.p .; James S. Rockefeller, clmm. W ith backs to camera are William I. Spencer, le ft, sr. v.p., and C. Sterling Bunnell, sr. v.p. and chmn. of money committee. CLOSED circuit television has bond_a ed the dual-headquarters of First National City Bank, New York, into a single operating unit in spite of the more than four miles distance between 55 Wall Street and Park Avenue at 53rd Street. First National City’s daily money committee meetings are the primary ( example of the value of the television system. At 10:45 a.m., the committee assembles in rooms at 55 Wall Street and 399 Park Avenue. Committee Chairman C. Sterling Bunnell, senior vice president, opens the meeting by asking that the bank’s position be shown. A flick of a switch and the picture on the left becomes an image Chicago Executive Retires Mark W. Lowell, vice president and executive trust officer, retired last month from Continental Illinois Na tional Bank and Trust Company, Chi cago, after more than 37 years of serv ice. He will continue as a member of the board of directors. Clair W. Furlong, vice president, will assume the senior responsibility in the administration of the bank’s trust department. With private wires uniting our own offices in all 3 Pacific Coast States, direct airport pickups, and transit crews working through the night, we speed c o lle c tio n o f y ou r item s th rou gh ou t the West. SAN FRANCISCO and other California c it ie s . . . PORTLAND, Oregon . . . SEATTLE and TACOMA. Washington • HEAD OFFICE: 4 0 0 CALIFORNIA STREET, SAN FRANCISCO 20 Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BANK OF CALIFORNIA . ' • •• , NATIONAL. ' \ : ;•. °;• A S SO C IA TIO N 15 ED S C H O O R . . . a n d W illia m d a ffk e , h e a d o f M e r c a n t ile ’s R e a l E s ta te D e p a r tm e n t, d is c u s s p a r tic ip a tio n in a re a l e s ta te lo an to be m a d e by a c o rre s p o n d e n t bank. ■ m REAL ESTATE ASSISTANCE . . . o n e of 5 5 t ypes of c o r r e s p o n d e n t s e r vi ce r e q u e s t e d during the past month of YOUR MAN FROM MERCANTILE Other services, to m ention a few , included . . . bond accounting assistance . . . letters o f cred it. . . open-house planning . . . grou p life insurance help . . „ and a staff orientation program. Mercantile Trust Company regularly provides more than 100 separate correspondent services. How many has your bank used? MERCANTILE M EM BER F .D .I.C . TRUST COM Pi A N YJI 11111 'is. é'-ï, WÉMË MÈÊÊÈÊm WmMSa. f 'n- $ S A I N T L OU I S 6 6 , M I S S O U R I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKER-TO BANKER SERVICE H o w o n e b a n k ’ s c u sto m e r a d v a n c e d into the electro n ics era This is a true story, but because we always hold our relations with any customer in strictest confidence, certain minor but identi fying details have been altered. A good bank is often a company’s ticket to success. Consider the case of the small midwest radio parts manufacturer that grew into a multi-million dollar corporation. Early in the company’s history, its owners devel oped a new process for manufacturing min iaturized radar system components. But to expand meant more working cap ital than their local bank could legally lend to them. Meantime, a competitor was working around the clock to perfect the same process. One of the officers at the local bank—a correspondent of ours—described the pre dicament of the company to our officer serving this territory. His quick appraisal of the company’s potential resulted in an expanded line of credit being provided by our correspondent and The First National Bank of Chicago. Almost immediately, a chain reaction began. The small radio parts manufacturer grew by leaps and bounds. Additional personnel came from all over the country and settled there. New suppliers brought new wageearners. The local bank acquired many personal and commercial accounts and prospered in a flourishing community. The First National Bank of Chicago can help you help your customers, too. As signed to separate geographical areas in all 50 states, Di vision F officers understand your problems and will give you banker-tobanker service. As a correspondent of The First National Bank of Chicago, you’ll benefit from fast check clearing, ten industry-specialized commercial divisions, bank planning—any or all of a complete line of correspondent bank services. If this is the kind of service you are looking for, contact our Division F today. The First National Bank of Chicago Dearborn, Monroe, Clark and Madison Streets • Building with Chicago since 1863 MEMBER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL DEPOSIT INSURANCE CO RPO RATIO N *»♦**«♦»*♦* «*4 •**#***♦♦ v u u \u \ * * #-* <«• ' » * * * ** * * >##««««•<**'* k u m i n ♦4**4 Their years of experience in automation can be invaluable to your bank, what the Harris has learned as a pioneer in this field can keep you ahead of the rising tide of paper work. This is one way we help our correspondents. How can we help you? HARRI S “ Organized » . N . W . Harri. * Co. ^ - I n c o r p o r a , , * , ^ - M e m b e r Federal Digitized Northwestern for FRASER Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK 19 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September, 1961 20 go, where he served as vice president and chairman of the investment com 0. Paul Decker, 58, president of the mittee. National Boulevard Bank, Ch i c a g o , Born in Chicago in 1903, he attended died last month at his home in Chi the Todd School for Boys at Woodcago following an stock, University of Chicago, and grad extended illness. uated from the University of Chicago Mr. D e c k e r in 1924, summa cum laude. He is sur served as presi vived by his wife, Alice; a daughter, dent of the bank 18, and his mother, Matilda K. Decker, from 1956 u n t i l Burlington, Iowa. Mr. Decker’s wid his death. From ow is the former Alice C. Thompson 1930 to 1956 he of Des Moines. w as associated with the Ameri Talcott Earnings Up ca n N a t i o n a l Consolidated net earnings of James Bank & Trust O. P. D E C K E R C o m p a n y Chica Talcott, Inc., the nation’s largest inde O . Paul D ecker How Douglas-Guardian and Your Own Banker Can Unfreeze Your Cash!” the Symbol of safe, guaranteed loans D-G Protective Padlock! With this theme, our Wall Street Journal ads are building desirable loans for you . . . helping you to make loans you couldn’t make without this extra security! We’re telling business how D-G on-premise warehousing control can let you . . . the local banker . . . turn their saleable inventory into cash. With D-G’s “ Traveling Credit” plan you can make safe, guaranteed loans on any inventory that has a market, from raw material to finished product! To learn more about this Douglas-Guardian service, send for our booklet that explains it in detail . . . or there’s a D-G man near you who’ll call if you like. YOU CAN RECOMMEND D-G WITH CONFIDENCE! D ouglas-G uardian WAREHOUSE CORPORATION P .0 . Box 397, New Orleans, L a . BRANCHES IN PRINCIPAL CITIES orthw estern Banker, September, 1961 DigitizedNfor FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pendent. industrial finance company, were $2,459,428 for the six months ended June 30, 1961, an increase of 15.6 per cent over earnings of $2,127,552 for the comparable period a year ago, Herbert R. Silverman, president, re ported. Ozark A ir Lines P rom otion Dave Schuetts, Minneapolis, has been promoted to district sales promotion manager for Ozark Air Lines’ north ern district, which includes cities served by Ozark in Iowa, Minnesota, Missouri, Nebraska and Wisconsin. Mr. Schuetts joined Ozark in 1957 as a station agent at Minneapolis-St. Paul. He attended Kansas City Central Tech nical Institute and the University of Minnesota before joining Ozark. Heads New Branch Appointment of Thomas A. Paulson as vice president and manager of Se curity First National Bank’s new Wilshire and Harvard branch in Los An geles has been an nounced. ■ a which will be loca te d on the ground floor of the new 22-story Travelers In s u r- opened for busi ness last month. Mr. Paulson has t . a . p a u l s o n been with Secu rity since 1947. Prior to his new ap pointment he was in charge of the Bank and Customer Relations Depart ment’s Central Division, calling on customers and other banks in the midwestern part of the country. A native of Sun Valley City, N. D., he graduated from the University of North Dakota and holds a law degree from the University of Michigan. He also practiced law in Duluth, Minn., for nearly seven years. Name Burroughs Executives Burroughs Corporation announced the appointment of two men to top executive positions in its marketing operations. Henry F. Sherwood is special assist ant to the vice president of marketing and Frank McKennett is consultant to the vice president of marketing. Mr. Sherwood form erly was man ager of the computer systems depart ment of Touche, Ross, Bailey & Smart, international public accounting firm, while Mr. McKennett was marketing consultant in the office of the IBM director of marketing services. “If your giant robot is so bright,” said the man from the Commercial Loan Department, “I have a million-dollar loan application I’d like to have his opinion about.” “ Don’t think we’re not working on that,” replied the Methods Research man. “And if you ever reduce that kind o f decision-making to a mathematical formula, we can teach the machine how to make your decisions for you. But right now the ‘human understand ing,’ ‘foresight’ and ‘judgment’ you use in lending money—well, those things can’t be taught to a machine.” O f course, electronic “ brains” are only brains when they’re told exactly what decisions to make and under what exact circumstances. But there are still many jobs they can do within a bank. So ever since 1934, we’ve been increasing our use of automation to eliminate the drudgery of mounting paperwork. The idea is to give our people more time to use the talents that are peculiar to people: the exercise o f human understanding and vision. Like every other forward-looking bank, we’re always searching for ways to im prove our methods and to step up the quality o f our service. Our backlog of experience in data processing—reviewed in the perspective of 25 years—turns out to be a substantial story, unique in many respects. Faced as you are with the mushrooming growth of record keeping and with rocketing costs, you may find that our years of experience will be helpful to you. BANKERS TRUST COMPANY 16 Wall Street, New York 15, N. Y. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M em ber Federal Deposit Insurance Corporation 22 In Chicago “Farming for Profit” reports pay big dividends in better farm customer relations . Continental. City National M e r y e Over Labor On y D. M . K E N N E D Y A. T . L E O N A R D N ORDER approving the merger of City National Bank and Trust Company of Chicago into Continental Illinois National Bank and Trust Com pany was issued last month in Wash ington by Ray M. Gidney, comptroller of the currency. The two LaSalle Street banks an nounced immediately that they would merge at the close of business on Sep tember 1. The new institution, oper ating under Continental’s name and charter, will begin serving the public on the next regular business day, Tuesday, September 5. Actual physical merger was planned A F A R M IN G FO R P R O F IT R e p o rts lo ad e d w ith v ita l m a rk e tin g , and fa rm are p ro d u c tio n m a n a g e m e n t in fo rm a tio n . Yo u ca n d is trib u te th ese re p o rts to yo u r farm c lie n ts and p ro sp e cts fo r only p en n ies know and re s p e c t a co py. F a rm e rs th e e ve ry w h e re nam e fa rm " D o a n e ," the m a n a g e m e n t and n atio n 's N o. I a g ric u ltu r a l c o n su lta tio n o rg a n iz a tio n . See fo r y o u rs e lf P R O F IT bank is s e rv ic e sa m p le w hy t o d a y 's re p o rt. re p o rt F A R M IN G m ost S e nd and FO R w id e ly-u se d fu ll fo r a fre e in fo rm a tio n a b o u t how you can use th is p o te n t p u b lic re la tio n s s e rv ic e . M a il co u p o n to d a y . N O W AVAILABLE IN M ANY AREAS ON AN EXCLUSIVE BASIS SEN D ME AND NAM E FU LL D E T A IL S FREE SA M PLE .......................... .......................................... -.......... AD D RESS C I T Y . . .................................................. S T A T E DOANE AGRICULTURAL SERVICE, IN C . 5142 Delmar Blvd., Dept. F-104 St. Louis 8, Mo. Northwestern Banker, Septem ber, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D. M . G R A H A M T. C U M M I N G S for the Labor Day week end, when City National was to move across the street from 208 S. LaSalle Street into Continental’s building at 231 S. La Salle. David M. K e n n e d y , Continental board chairman, and Arthur T. Leon ard, City National president, said in a joint statement: “ The union of these two banks is strongly in the public interest. The new Continental will provide all types of services for corporations, other commercial c u s t o m e r s , and corre spondent banks. It will also provide complete facilities for personal bank ing customers. Mr. Leonard will be elected chair man of the executive committee of the merged bank. Other top officers will be Mr. Kennedy, chairman; Donald M. Graham, vice chairman, and Tilden Cummings, presi dent. It was previous ly announced that four members of City N a t i o n a l ’ s board w o u l d be come directors of Continental at the t i m e of t he merger. In addi tion to Mr. Leon W . H. M I L L E R ard they are W il liam H. Miller, senior vice president; Rawleigh Warner, chairman of the board of The Pure Oil Company, and Clarence H. Shaver, chairman of the nf TTnit£>rl Cvnsnm Com pany. On June 30, midyear reports of the two banks showed that Continental had total assets of $2,844,818,000, total deposits of $2,463,394,000, and loans of $1,357,420,000, while City National had assets of $384,915,000, deposits of $341,197,000, and loans of $155,726,000. The merged bank will be the ninth largest in the country, with total as sets of $3,229,733,000 as of June 30. 23 Want te know whats going o ÌN OMlFoRNfA? Forthe best information on California, call on the bank that's best informed-United California Bank. We can give you the big, state-wide picture or a close-up of an industry or business in a particular community. Whenever you are about to do business in California, contact United California Bank. D IS T R IC T H E A D Q U A R T E R S 600 S o u th S p rin g S tre e t, Los A n g ele s 405 M o n tg o m e ry S tre e t, San F rancisco CAPITAL FUNDS o v e r $ 1 6 0 M illion • RESOURCES over $ 2 Billion U N IT E D C A L IF O R N IA BANK Border to border throughout California t < : f: • 1 ; ■sL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September, 1961 24 4. The processing of these millions of quarterly reports would take an estimated 2 million addi tional clerks and officials housed in perhaps 10 to 20 regional office buildings plus all the millions of dollars invested in accounting, computing and tabulating machines. (D j w a . W jm aq sl J d m b h sL : Chairman, Federal Legislative Committee, A.B .A ., and Chairman, First National Bank, Thomson, Georgia. The proposed bill for a withholding tax on dividends and interest should he opposed by mem bers of Congress because as you say: “ There is little doubt that the mass of testi mony in opposition to withholding has made a great impression on. members of Congress. While they might have little compassion for the prob lems confronting banks and other dividend and interest payers, they will probably have second thoughts about imposing such burdens upon their own constituents.” What is the purpose of this bill? It is supposed to stop tax loopholes by with holding at the source 20 per cent of each and every dividend and interest payment, and putting the burden on the taxpayer to get a refund for overpayment of taxes. The amount of taxes if collected is estimated to be about $537,000,000. What the cost would be to collect this sum and the staggering amount of work involved can only be imagined, but here are a few facts to consider: 1. It would impose unreasonable hardships and inequities upon charitable, educational, and other tax-exempt organizations, as well as on foreign and local governments. 2. Every United States citizen would have a tax number. 3. Every quarter of every year, every corpora tion, large and small, public or private, which pays dividends on its stock, or interest on its bonds or debentures; every government agency, Federal, State, County or Municipal, which pays interest on bonds, every bank which pays interest on de posits or loans and every savings and loan asso ciation would report to the Internal Revenue and remit 20 per cent of every such dividend and interest payment by the tax number of the in dividual. Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis If J.F.K. and his “ off the beam” economists want to save money just let them take 1 billion dollars or more off of the $20 to $40 billions which they plan to spend on their crazy wild-eyed plan to reach the moon by 1967. The amount thus saved would more than equal the $537,000,000 they plan to get through a withholding tax on dividends and interest. The withholding system is neither practical nor workable and let’s hope it never becomes a law. (D&Wl QnhrL (RdomdsJL: Partner, Bache and Company, 36 Wall Street, New York. For a number of years we thought that you stood for the issues that made America great, but when you endorse and speak for James Hoffa, president of the teamsters union, we count you out. Attorney General Robert Kennedy says that “ Hoffa is a menace to the country” — and so he is. At the Miami teamsters convention you told them that “ I f I were a delegate I would vote to re-elect Jimmy.” You said you solicited the teamsters business to manage their $160,000,000 pension fund ac counts, so we assume you had to “speak your piece” at the convention. W hy do you want a client who has been asso ciated with crooks, gangsters, extortionists and murderers? Are you that desperate for business? They put General Electric officials in prison because they agreed with other firms to charge the same price for motors and machinery, but your client Jimmy goes merrily on his way defy ing the law, the courts and violating all ethical standards of decency. Sorry you are associated with such a “ menace,” Mr. Roosevelt. 25 NEW DIEBOLD DIRECTION CONTROLLED WINDOW SERVES SMALL CARS, TALL CARS, A L L C A R S ^ H DIEBOLD I N C O R P O R A T E D Today’s drive-in banking customer may be driving anything from a knee-high sports car to a tree-high truck. But with this new window, it couldn’t matter less! It features a deal drawer that moves up and down as well as in and out, makes drive-in banking convenient for small cars, tall cars, all cars . . . does so electrically at the touch of a button! Designed and engineered in a tradition of quality, this new direction controlled window brings a new concept of convenience and service to your drive-in banking. Get complete details now! The coupon below will bring them to you. DIEBOLD, Incorporated — Canton 2, Ohio Dept. B - 1 2 3 Gentlemen: Please send complete details on new Direction Controlled Drive-in Window. Name________________________________________________________ ________________________________________________ SAFE COMPANY A Division of Diebold, In co rp orated Bank_________________________________________________________________________________________________________ Address______________________________________________________________________________________________________ City_____________________________________________________________ Zone-------- State________________________ In Canada: Diebold of Canada Ltd., Toronto Ahern Safe Co., Montreal https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D I B -1 5 3 5 Northwestern Banker, September, Ì961 26 DAY AND NIGHT PICK-UP SERVICE SAVES CLEARING TIME! Our motorized messengers make pick-ups around the d o ck at the San Francisco International Airport, hub o f Pacific Coast je t air routes. W ithin 30 minutes o f receipt at the airport, y o u r cash items are being processed at our Operations Center. Motorized check collection and direct routing to our more than 125 branches in Northern California provide fast, efficient collection and availability o f credits. WELLS FARGO BANK 1 8 /ff^ 5 2 AMERICAN TRUST COMPANY FOR DETAILS WRITE WELLS FARGO BANK AMERICAN TRUST COMPANY, 464 CALIFORNIA STREET, SAN FRANCISCO 20, CALIFORNIA orthw estern Banker, Sept ember, 1961 DigitizedNfor FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■lili RE bankers all “hard-boiled cookies” with no sense of humor? Not so, according to James H. Clarke, vice president of the American National Bank and Trust Company of Chicago, who edits his bank’s weekly bulletin Business N ews Abbreviated. “ I have learned one thing for sure,” says Mr. Clarke, “ that bankers have ex cellent senses of humor and that they like to write in to tell me that they enjoy the letter because of its light touch.” Do bankers want to read only about rediscount rates, auto production, freight car loadings and farm surpluses? The answer is no. Mr. Clarke has the fine ability to mix fun with financial facts, and that is w hy his reports are so widely read. Here are a few examples from his recent bulletins: Nostalgic Memories of a Small Town Guy. Those band concerts in the city park where the ladies’ society served home made ice cream and you had a choice of vanilla or strawberry. The dipper was conical shaped—what be came of those? The decor? Japanese lanterns — what else? . . . The times we stood in front of the local news paper office where the telegraphic reports on elections and sporting events were received and the editor himself came out to mark up the returns on a blackboard while you cheered or moaned. . . . And those mornings when you were down in the railway yards by 5 o’clock to see the circus pull in—and the train arrived four hours later. Miscellaneous. W e don’t ordinarily depend on the New Yorker for news stories, but we must give it full credit for the item on the latest advance in the forward progress of the vending machine. Hear this now! “ In Laporte, Colo., you can get worms from a vending machine.” Does Automatic Canteen know about this? . . . Our Candidate for Doctor of the Century: Milton H. Miller, M. D.! Reason? Simple enough! Read what he has to say: “ Hospital patients endure emotionally damag ing experiences quite similar to those caused by brain washing techniques.” And he goes on to point out that the waking of patients at odd hours has a “disorganizing impact which slows down emotional recovery.” W hich reminds us of the fellow who couldn’t get an answer from his doctor or the nurse in the hospital on how he was getting along so when no one was looking he got dressed and sneaked down the lobby, dialed the hospital, and asked how he was. He was relieved to learn he was fine. AVhere Have the Railroad’s Passengers Gone? “ It’s a very interesting question,” says New York Central’s President Perlman, “because when the New York State Thruway was opened up, 51 per cent of our passenger business disappeared in a matter of two years. It isn’t that we want to get out of the passenger business, it’s the passengers who are deserting the railroads. It is not the other forms of common carriers that are taking it, it’s the private automobile. W e are treated as a m onopoly— yet we have only 3 per cent of the passenger transporta tion, the airlines carry 3 per cent and the bus lines the same, so the automobile gets about 90 per cent.” America Is a Wonderful Country! And what you can’t buy in New York City you can rent. For proof go to Animal Talent Scouts Inc. at 331 West Eighteenth Street and the man there will rent you a kangaroo! Impossible, you say—well, just go there and see—and tell him that we sent you! Today’s Question: Is there any banker of more than one day’s experience in the business who has never had A BANKERS DIKE HUMOR . . . (Turn to page 42, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JAMES H. CLARKE ttankers L ike Hu As Told B y JAMES H. CLARKE, Vice President American National Bank and Trust Company of Chicago To CLIFFORD DE PUY, Publisher The Northwestern Banker ■ James H. Clarke is head of his hank's United States gov ernment bond division. A fter six years experience in bank investment counseling with Moody’s Investors’ Service, Mr. Clarke joined American National in 1935 as manager of the statistical department. Three years later he was made an officer and in 19f7 was elected to his present position of vice president. He is a member of the faculty administrative committee of the School of Banking at Madison and section leader there in charge of the second year course on commer cial bank investments. In addition to the School of Banking, he has lectured at other educational institutions including the universities of Northwestern, Illinois and Michigan. A graduate of the University of Michigan School of Business Administration, Mr. Clarke is an honorary member of Alpha Kappa Psi, a professional fraternity in commerce and busi ness administration. No rthwestern Banker, September, 1961 28 Increase B ank P ro fits B y Better 'F THE country banks of the nation did the same kind of job of reserve management as is done by the city • banks, about $500 million of excess reserves could en ter the money market. The fact is that the bulk of all excess reserves are in the country banks, and there is no economic or monetary reason w hy they should exist. The Federal Reserve Bank of Chicago has undertaken a program of education to show member banks how to re duce these excess reserves. A simplified worksheet has been developed and is supplied free of charge to country member banks. Through the use of this worksheet, the bank is made aware of its cumulative reserve position each day during the reserve period. Using the worksheet and the suggested procedures any country bank which de sires to do so can avoid holding excess reserves, and need run no risk of incurring a penalty. I What Are Excess Reserves? Country banks which are members of Federal Reserve are required to hold reserves equal to 12 per cent of net demand deposits, and 5 per cent of time deposits. Cash in vault is counted as part of this reserve, the rest being held as a balance in the “ reserve account” at Fed. Thus, bal ances greater than the adjusted requirement are “ excess reserves.” The reserve account at Fed may be as active as the bank desires. Deposits may be made to it in any accept able form, such as cash letters, currency and coin, pro ceeds from the sale of securities, or funds transferred from another bank. Drafts, transfers, and direct charges may be made against it for any existing liability. In these ways, the reserve account is much the same as any other account. Excess reserves could not exist, however, in an account such as banks carry with their correspondent. That is to say, they could not exist in an exact amount which could be put into a statistical table. Only an account with a carefully defined balance requirement could have defin itive excess balances. This, the Fed account does have, and in this respect it is unique. This feature of a required balance based on deposit size is the very heart of central banking. In a free economy such as ours, with its thousands of competing unit banks and its highly complex financial mechanisms, it would be virtually impossible to maintain reasonable stability of bank credit (and also reasonable stability of industrial DigitizedNorthwestern for FRASER Banker, September, 1967 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis production, employment and consumer prices) without it. In bringing about this stability, the System’s actions to ease or tighten credit have their direct effect on the re serves of member banks. Why Banks Hold Excess Reserves The vast majority of member banks are in the “ coun try” classification. They range in deposit size from $1 million or less to over $100 million. It is this group of banks, rather than the larger reserve city banks, which hold most of the excess reserves. There are undoubtedly many reasons w hy they do so, and the relative importance of these would vary from bank to bank. One of the principal reasons, however, judged from widespread contacts in the Seventh District, is that in the past it has not seemed worth the effort to operate close to the line. Throughout the years prior to 1960 the reserve period for country banks was one-half month. The period would extend from the first of each month through the 15th. The following period would extend from the 16th through the rest of the month. This semi-monthly period seemed to make sense be cause it didn’t appear necessary for the smaller country banks to report as often as the every-week requirement for large city banks. Nevertheless, it had the result of making reserve management extremely difficult. The pe riods were of varying length; they often would close on a week end, and some might even contain three week ends. As many country bankers have stated, “ It was just more bother than it was worth.” The two-week reporting period, instituted December 31, 1959, has greatly simplified reserve management, how ever, and gradually more and more country bankers are coming to understand the importance of this factor. Each reserve period now consists of 14 calendar days. Each period starts on Thursday and ends on Wednesday. De posit fluctuations and cash needs are more directly geared to days of the week than to monthly dates, so forecasting reserve requirements and vault cash holdings is made easier. Likewise, it is now possible to use a standard w ork sheet to compute the cumulative reserve position. It is here that the Federal Reserve Bank of Chicago has at tempted to help by devising a simple worksheet which can be used by all country banks and, as previously stated, this is made available without charge. 29 Account Management Written Especially for The Northwestern Banker By CHARLES G. WRIGHT Assistant Vice President Federal Reserve Bank of Chicago, Illinois A close scrutiny of the accompanying illustration will show how the procedure works. Each day’s deposits are carried as a running total (designated “ Cum” for cumu lative), and the reserve is computed on this cumulative amount. So, likewise, the vault cash and Fed balances are carried as cumulative totals. The sheet carries the closing balances as shown on the daily statement received from Fed, and therefore is equally effective whether the bank has many daily transactions at Fed, or very few. This procedure causes the bank to make computations on vastly larger dollar amounts than has been customary for computations on a daily basis. Because of this, some banks have decided to give the procedures a “trial run” for a few reserve periods in order to develop real confidence in the results. Actually, the cumulative meth od is the simplest and surest one. Country banks which have become familiar with its use have found it both simple and dependable. Procedures For Reserve Management In order to introduce the procedures which are being suggested for improved management of the reserve ac count, the Federal Reserve Bank of Chicago has held two conferences. One officer from each of 30 banks in the district attended each conference, the first of which was in January, 1961, and the second in April. These officers were from operating departments. The two-day program covered (1) proper entries on the Report of Net Deposits and Legal Reserve Required, (2) use of the W ork Sheet for Computing Cumulative Re serve Position, (3) formula for cash adjustment, and (4) suggestions for internal research for the purpose of fore casting cash needs. Results of the conferences were favor able, although it is true in this area of learning, as in any other, that the banker learns by experience. Three steps are suggested for reduction of excess re serves through tighter management of the account. 1. Maintain the daily reserve position using the “W ork Sheet for Computing Cumulative Reserve Position.” This is clerical work and should be done by the gen eral bookkeeper. In this way the worksheet becomes part of the regular procedure and is prepared each day along with the general ledger and daily state ment. In the larger country banks, the investment officer will, no doubt, want a daily report on the Fed position. Experience indicates that this can best be https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis done by inter-office memoranda. 2. Follow the check point system. This is suggested particularly for the smaller country banks. It re minds the bank to adjust frequently enough to avoid too great a deficit or excess position within the re serve period. At the Federal Reserve Bank of Chi cago we suggest four check-points during the reserve period. These are (a) the first Monday; (b) the sec ond Friday; (c) the second Monday; (d) the final Wednesday. There is a good reason for checking on these particular days. The two Mondays are sugRESERVE ACCOUNT . . . (Turn to page 38, please) W O RK SHEET FOR COMPUTINO CUMULATIVE RESERVE POSITION DAY DEMAND DEPOSITS (COL. 3. FORM LIO») 1 MIL. THOU. DEPOSITS (COL. 4. FORM LIO») 2 MIL. THOU. s ¡8/ . 9/7Z. MU s ¿46 3 114 CUM JO £3/ 346 • AT £ 3 4 ! __y a s CUM i S m J 131 IUN s m 3 l/l 11 OS?JZ 6?l MON s m 3 /y / CUM lb m JJLm TU« y m 3 143 3/ Jl 06 «■0 / m l£h CUM 31 080 22L332 THUN S 162 Wt CUM m I S C96 NNI V t02 3 111 CUM 47 3/0 12 867 TMU* REQUIRED RESERVE __ *0F COL. 1 3 MIL. THOU. 781 / 469 369 3 161 3 9/3 4 7/3 $ £66 3/C 7M • AT y ¿ 87¿ 3Z 09? 7 9/0 32% 3 z$s CUM s ? 20/ 3 /3/4 ? 7SI MON ym y z/s 607 m — _y Oh? 3 246 CUM 68 m 4L IÍS to .'O 5 stA 3 192 CUM 73 ?Z3 4 / OLÍ u 123 AVERAGE 794 £ 180 3 z n •UN CURRENCY BALANCE NEEDED FORM LIO») 4 MIL. THOU. BALANCE STATEMENT 6 5 MIL. EXCESS (+) OR DEFICIENCY (-) - ‘ IN(COL. «• COL. 9) THOU. MIL. 7 THOU. MIL. THOU. 3/9 427 467 t 46 ¿93 413 40 12 '677 922 n¿ f/S ¿71 /¥■// / m m 4/4 11 Yj s m / p h 19// 712 243 i a $3\ m / m Z W ? z 243 - ZI6 9 Z/6 hiy / 7/0 3 003 _ Z S/2 - 1.4./ 167 642 a 017 3 / 4 3 /Où - 49 7 274 617 2 z ìi 40/9 4 i n + yy 6 512 302 ZS99 ..4/26 - 4 63/ -h I09 5 /18 313 M ...S 0.3.6._ . ÿ ¡S3 _ ± l i 7 4 SlZ 276 ? 3 3 ¡90 y 662\ y 671 176 076 466 - A m . 6 347 ■h 2/9 2 3/o 146 -6 / 6 3 6 697 + 134 1 335 362 4- 017 7 OU 1 059 _ ± 33 — /ol /o4 -1- 2 m N o r t h w e s te r n B a n k e r, S e p te m b e r, 1961 30 H ou’ to By DR. WILLIAM G. MURRAY Agricultural Economist Iowa State University Am es , Iowa EFORE W orld W ar I, farm ap praisal was little more than an estimate or guess made after driving past the farm or visiting brief ly with the farmer in the farmyard. Such valuations have been referred to as “horseback” or “ windshield” ap praisals. With the development of the profes sional appraiser, these incomplete ap praisals have been largely replaced by detailed reports which make use of the latest scientific knowledge of soils, crops, farm structures, costs, price trends, sales value comparisons and similar data. Today, there are many kinds of farm appraisal. The more common types are: B • 1. Appraisals for farm loans. • 2. Appraisals for the purchase or the sale of a farm. • 3. Tax a s s e s s m e n t s of farm property. • 4. Appraisals made for condem nation of farm property. • 5. Other types including inherit ance tax appraisals and ease ments for power and pipe lines. The main purpose of a farm loan ap praisal is to provide an up-to-date val uation of a farm property. In the proc ess the appraiser stresses long-range forecasts, because the loan agency needs a long-range valuation. When a loan is made for 20 or 30 years it is difficult to foresee developments, good and bad, which may affect the farm during the loan period. Prosperity, Nofor rthwestern Digitized FRASER Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis depression, changes in food prefer ences, new crops, new production techniques and equipment, govern ment assistance p r o g r a m s , erosion, floods, insects, disease, accidents and sale of the farm one or more times during the life of a loan all should be taken into consideration as elements affecting the value of farm property. Income, risks and community m o rale are the three principal long-range forecasts that are usually stressed in a farm loan appraisal. Income from the farm in the years ahead is especially important because it is from farm in come that the borrower will obtain the funds to pay the interest on the loan. One of the main weaknesses of farm loan appraising in the past has b e e n over-valuation of low-income farms and under-valuation of high in come farms. Then there are the risks of loss during the loan period from such hazards as erosion and floods that may cut the income and reduce the farm value. Finally, there is a question of com munity morale which indicates wheth er land owners will make reasonable sacrifices to save their farms from foreclosure during depressed condi tions. Appraisals for Purchase or Sale A prospective purchaser wants an appraisal that gives an up-to-date val uation of the farm tract. A prospec tive seller wants the same valuation figure in an appraisal prepared for him. But, the purchaser and seller want different items stressed. The purchaser wants detailed infor mation on any unfavorable features, such as poor drainage, undesirable hard-pan layers in the subsoil, or al kali spots. He will want a close in spection of the buildings and improve ments to detect weaknesses or depre ciation in the buildings, to make sure the water supply is adequate and the pumping equipment is in good shape, and to get an accurate evaluation of fences and other improvements. He also wants reliable information on community developments that will make this a less desirable investment, such as loss of a nearby school, relo cation of a highway, or selection of a nearby site for a sewage treatment plant. He also will want to know the good points about the property. The seller, on the other hand, wants the appraiser to provide him with spe cific information on the favorable fea tures, such as location with respect to markets and community institutions, areas of especially good soil, excellent features of the buildings, attractive community developments. The ap praiser also should show possibilities for land uses other than those prac ticed by the present owner. The final appraisal value for a given farm might be the same for buyer and seller, but there usually will be differ ences in the amount of information furnished on points of particular in terest to each party. Tax Appraisal Appraisal for the tax assessor dif fers from that for a loan or for the sale of land in that the tax assessor 31 ¿I§9p vaisv unti Virtue Farm Lam i does not need the long-range forecasts needed by a lending agency. Condemnation Appraisal Condemnation appraisal is highly specialized and can become a center of controversy. Fair market value is the general standard used in providing compensation to owners. The general principal is that fair market value for the property taken will make the own er “w hole” ; that is, it will enable him to replace what has been taken from him. Common Features Although there are several different kinds of appraisal, there are a set of features common to practically all types. Three important factors to be covered in any appraisal are: 1. To identify the farm by location and legal description. 2. To inventory and classify the physical features; this includes soils, topography, drainage, or chards, timber, tillable and nontillable land, farm structures, etc. 3. To establish a m oney valuation for the farm tract. Three major stages are involved in making an appraisal: Collection of ma terials, date and equipment; inspection of the farm and comparison with other farms; final analysis, valuation and preparation of the report. The final step, properly termed the appraiser’s “ homework,” will ordinari ly be done in the office after returning from the inspection of the farm and comparable farms. This work is di vided into three steps: Income valua tion, market value estimate, and final correlation and determination of value. Income Value Stated briefly, the income or earning statement of value is a translation of physical data into dollars and cents. In making this translation, either the rental or owner-operation form may be used, depending on which is the most common use of land in a given area. In some cases both forms should be used. Income valuation requires several important decisions. It is assumed that the crop pattern and crop yields have been estimated. In the rental valuation statement it is necessary to divide the crop between the landlord and tenant, or show a cash rental rate for land on which no crop share divi sion is provided. For both the rental and owner-operated forms, prices for farm products must be selected, and expenses have to be estimated. With this information an estimate of net income to the farm land and buildings can be figured. Some appraisers and loan agencies stop with the income statement, others proceed with the capitalization of net income to obtain an income value esti mate. Capitalization is calculating the worth of a property by dividing a net income figure by an interest or capi talization rate. The formula is: Net Income ----------------------= Value Interest Rate This capitalization rate expresses the relationship between an annual in come and the value of the property. For example, with the current interest rate of 5 per cent, a property yielding an estimated return of $6.50 an acre indefinitely into the future, would be worth $130 an acre: $6.50 ---------= $130 .05 Looking at it from another angle, farms selling for $130 an acre on an HOAV TO APPRAISE . . . (Turn to page 74, please) ■ This artic le is a condensation of the opening chapters of the fourth edition of William G. Murray's book, "Farm Appraisal and Valuation", copyright 1961, Iow a S tate University Press. Dr. M urra y is professor of agricultural economics a t Iow a State University, Ames, and formerly was head of that department. He is shown here comparing soil samples during a recent Iow a Bankers Association Agricultural C re d it School, at which he was an instructor on Farm Appraisal. Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 .1 Sound Hu sis F or Loans A A , In IIHik z£ / few <0 MHBk liy PAUL L. CARSON Associate Agronomist South Dakota State College Brookings, South Dakota 'T IS easy to lend money on a new tractor or quarter of land as you have collateral you can see and feel, I ■ but fertilizer, although it is hard to see once it is on the land, can be one of the farmer’s best investments. This can be illustrated with results from Campbell County, S. D., in 1959. $<> For a $1 Investment The yield, where no fertilizer was applied, was 10.1 bushels per acre. Where 80 pounds of 30-10-0 were ap plied, the yield was 19.6 bushels per acre. The fertilizer cost $2.92 per acre. When the value of the crop is calcu lated at $2 per bushel, the return on an acre of land that was unfertilized is $20.20; whereas, that on the fertilized land was $39.20—an increase of $19 for the price of $2.92. This means a return of more than $6 for every $1 in vested. I can’t help you find a sure bet, but I hope I can show ways to reduce the risk in making loans for fertilizer use. First, consider the history of yields in South Dakota. If you are more interested in yields for individual coun ties, you may obtain the figures from the Crop and Live stock Reporting Service in your state. By taking yields over a period of years you can determine what the aver age yield has been in your county. We, at South Dakota State College, have produced a yield potential map, see Illustration 1, on which we have divided the state into areas of like crop adaptations and yield potential. Good Management Important W e have estimated what we think yields can be under the best management over a period of years. Take the southeastern area—Area E. W e have estimated that the yield of corn here should be approximately 64 bushels per acre on land best suited to corn production (this is an average yield over 10 to 15 years). At present, the aver age yield in Minnehaha County (in this area) is 36.8. We estimate oats should be 60 bushels to the acre and it has been 33.4 the past few years. The cost of producing an acre of corn in Minnehaha County has been estimated at $27. W hen corn is worth $1 a bushel, this gives a net profit of $9.40 per acre. It does not include labor costs. If improved management is inaugurated to increase the yield to 64 bushels per acre, it will cost approximately $10 per acre. This is largely N o r t h w e s te r n B a n k e r, S e p te m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 for an increased fertility program, although insecticides, weed control and the like must be considered, and in creases the cost of producing an acre of corn to $37. However, the gross income would be up to $64 per acre for net income of $27, as compared to $9.40. If you are interested in the yield potential in a specific field on a specific farm, see your local Soil Survey Map, County Extension Agent, Soil Conservation Office or A.S.C. personnel. They should be able to help interpolate the yield production goal chart into the various soil types in your local area. Farmers’ Records Another factor on which to base a loan on a particu lar field is a set of records a farmer could keep concern ing the crops produced. This would be a general map of the farm with a listing of fields, crop grown and net profit of that crop each year for several years. It is merely a means of summarizing the profitability of a par ticular field and crop over a period of years. A second record sheet, see Illustration 2, is called a Plant Food Balance Sheet. It provides for field identifi cation, crop and variety grown, the yield, plant food ele ments recommended and by whom, the amount of plant food elements supplied, method of application and the like. The important part of this table is the means of determining the amount of plant food removed by the crop actually produced, then comparing it with the amount of plant food elements applied. This gives a bal ance on net removal or addition of plant food elements 33 for produ ction o f th at crop. I f the fa rm er leaves a ch eck strip w h e re no fertilizer has been applied and ch ecks the y ield, he cou ld com p are the n et in com e on th e check (n o n -fertilized area) and the fertilized area. Illu stra tio n 3 sh ow s h o w m u ch plan t food is rem ov ed per b u sh el o f corn, oats, or ton o f h a y produced. Illu stration 4 is th e C ost o f Prod u ction Chart, again h a v in g field identifications, soil typ e and several y ears over w h ich records can be kept. Illu stration 5 g iv es average costs if actual costs a re n ’t available. I f this information w ere kept on each field, or each soil area within a field, and brought to a banker when a loan is requested, the banker ivould have a sound basis for determining what the yields had been on this land, and by comparing this with the yield it is possible to produce on the land, he would know w hether additional fertilizer is advisable or not. I realize not all farmers will keep these records, but I am also aware that you, as bankers, can, by encour aging farmers to keep records, influence many farm ers who want to im prove their credit rating. H o w to G et Y ield s L e t ’s see h o w to get th ese yields: N u m b e r One is gen etics— the in h eren t produ cin g capac ity o f th e plant. W e should n ev er rela x in the p rogram o f u sin g th e best possible v arieties for th e produ ction of our crops. N u m b e r T w o is clim ate— m oistu re, tem p era tu re and th e like. I agree that th ere is seldom a g ro w in g season th at w e cou ld n ’t u se additional m oistu re, b u t w e are n ot ta k in g advan tage o f th e m oistu re w e do receive. T h e th ird factor is m an a ge m e n t— h o w to prepare the seedbed, u se o f w eed and in sect control, the tim elin ess o f operation, and others. T h e fo u rth factor is th e soil— its m oistu re-h o ld in g ca pacity, stru ctu re, p h y sica l and ch em ical ch aracteristics and its a bility to su p p ly plan t food elem en ts. F e r tility N eeds H o w do y o u d eterm in e w h a t the fe rtility n eeds o f the soil are? Soil tests are th e m o st practical m ea n s o f ev alu a tin g th e su p p ly o f a vailable plan t food elem en ts in a particu lar soil. T h e tests should be used to evalu ate the p ro d u ctiv ity o f the soil and to estim ate its fertilizer needs. T h is sh ou ld serve o n ly as a guide to fertilizer u se and, fr o m there, a fa rm er or fa rm m an ager m u st ex- -------------------------IL L U S T R A T IO N 2 ------------------- -— Plant Food Balance Sheet Field identification ..................................................................................... Year ............................................................................................................. Crop and variety ............................................................................ Yield .................... ...................................................................................... Plant food recommended by ..................................................................... Amount: N......................... P2O0......................... K2O....... ..... Method of application used ..................................................................... Amount applied ......................................................................................... Grade used .................................................................................................. Pounds o f Plant Food Elements Fertility program N P2Q5 K2O Pounds of plant foods needed to produce the yield obtained ..................................................................... Manure* applied in tons per acre ............................................................ Fertilizer applied in pounds ..................................................................... Net removal of plant food elements from the soil by this crop ..................................................................... Economic Aspects o f Program Check Fertilized Treatment .................................................................................................. Yield ........................................................................................................... Cost of fertilizer ......................................................................................... Production, land costs .............................................................................. Income** .................................................. Gross........................................ Net........................................ ‘ Manure calculated to have 10 lbs. of N, 5 lbs. of P2O5, and 10 lbs. of K2O. **Crop valued at .................. per ton, bu., etc. périment, to determine the most profitable rates of fer tilization that should be used on each field. What can you as bankers do to encourage a more profit able agriculture in your community? You, as bankers, are important because you influence the thinking of farm ers a great deal. You also influence the thinking of the people in your community—the other businessmen who are contacting these farmers and who can help influence them to accept new, more efficient methods of production more quickly. Thus, to reduce the risk of making loans on fertilizer, I suggest that we check the past performance of crops through the Crop and Livestock Reporting Service and/ or through the records an individual farmer can keep. I’ve given you a way to determine the yields in your area, what these particular yields could be and a means by which you can estimate the fertilizer needed to bring soil up to maximum productivity— soil tests. W ith these three tools, it should be possible for you to make a well qualified decision on whether to make a loan for fer tilizer use or not.—End. IL L U ST R A T IO N 3 Amount of Plant Foods Removed By Crops N Corn (per bushel) ............................. ........................ 1.5 Oats (per bushel) ............................. ........................ 1.4 Barley (per bushel) ........................... .............. ........ 1.75 Soybeans (per bushel) .................. . ........................ 5.5 Blue Grass (per ton) .... .............. .......................30.0 Alfalfa Hay (per ton) ................. . ....................... 55.0 P 2 O5 0.5 0.4 0.5 1.2 11.0 12.0 K2 O 1.0 0.8 1.0 1.5 42.0 32.0 IL L U S T R A T IO N T Cost of Production Record Field identification Soil type ................. Year I960 1961 1962 1963 1964 1965 Crop and variety Cost of production*' Plowing ............. Disking ................ Dragging ......... Planting ............. Seed ..................... Cultivation ....... Harvest ............... Storage ............... Insect control ... Weed control ...... Fertilizer ........... Miscellaneous* .... Total cost ........... Land cost .............. Yield ......................... Price ....................... Gross income .......... Net income .............. Comments: (hail, worms, rust, hot winds, deficiency symptoms, weeds, moisture, dry periods). *Miscellaneous: Manure hauled (cost), shelling, cleaning, hauling, etc. ** Labor not included. ------------------ — IL L U S T R A T IO N 5 — ---------------Cost of Producing Crops Calculate the net income from current market value of crops which is available at the County Agent’s Office. Production cost calculations are to be based upon operation costs from the following itemized table: SEED BED COSTS per acre Plowing ................................ $3.00 Disking (single) ....... 65 Harrowing (single) ................ 40 Planting, row crop ............. 1.00 Cultivating (single) ........... 1.00 Picking corn ........................ 3.00 Rotary hoeing ............................60 Drilling small grain ........... 1.00 Broadcast seeding of oats........50 Swathing .............................. 1.00 Combining ............................ 3.00 SEED COSTS Corn (check) .......................$2.25 (drill) ........................ 3.00 Oats ................................... 3.50 Barley .................................... 3.00 S. Wheat .............................. 3.25 W. Wheat .............................. 2.50 Flax ........................................ 4.25 Sorghum ........................... — 3.00 Soybeans ........................ 3.00 Land (charge) ................. 9.00 Storage & misc. (corn).... 5.00 Storage & misc. (small grain).... 3.00 Northwestern Banker, Septem ber, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 cial community is centering on the Federal Reserve System for clues as to what credit policy the Reserve can be expected to follow in forthcoming months. A shift in Federal Reserve policy away from easy money is ex pected. Such a shift, however, prob ably will be more gradual than in the past, probably it will be less sweeping. It seems safe to say, however, that the Federal Reserve’s controversial “ Operation Nudge” of the late winter —an open market purchase undertak ing avowedly intended to influence long-term interest rates downward— is over. The Reserve System has made it B y RAYMOND TRIGGER clear that it will continue to make market purchases in the intermediate I n v e s t m e n t A n a ly s t and long-term maturity area, but that N e w Y o r k C ity its first purpose will be to supply funds in a way most suited to the needs of the market, short or long. Reserve spokesmen, moreover, not only have disavowed any effort to achieve or maintain any given level of interest rates, but have declared bluntly that if the nation’s business booms again, interest rates could be HE money and bond markets are showdown with Russia over the future status of Berlin, and of the accelera expected to go up. in a new phase. The background Thus it is that even though the Fed of monetary ease that has pre tion of the outer-space race between eral Reserve kept making more than Russia and the United States to reach vailed since mid-1960 is beginning to token purchases of long-term Treas the moon. fade. Interest rates are going up. (4) The resurging of common stock ury bonds during recent weeks, prices The hardening of yields on debt se curities is not so much a reaction to equity values to new high record lev of long Treasury obligations kept go ing down. In effect, such purchases a greatly enlarged supply of new cor els. may have been a brake on the price The abrupt turnabout of the bond porate and government debt issues decline, but if so, this effect was inci market from a brief summer respite coming to market, in the late spring, dental to a first purpose— namely to has been felt most sharply so far in as it is in apprehension of new forces encourage the absorption of the heavy the list of United States government making for capital scarcity. These succession of new corporate and local securities. In less than two months, forces may be summarized as follows: government borrowings coming to (1) The decision of the Bank of yields on long-term Treasury bonds of market. both war and postwar issue have risen England to raise its lending rate from With the Federal Reserve standing by about one-fourth of one percentage 5 to 7 per cent, a level touched only by as a marginal buyer of long-term point, with 18 issues yielding 4 per three times before in this century. Treasury obligations, it became easier cent or more. In the case of the warThis move was intended to rectify for savings banks and other institu issued 2 V 2 S of 1969-1964 and of 1970internal imbalance in the British econ tional investors to sell Treasury bonds 1965, the yields at this writing were omy and to attract investment funds out of portfolio and put the money to 4.19 per cent. to London from abroad. It revealed work on the new corporate and mu tellingly the limits of international co M unicipal Outlook nicipal debt issues. operation that can be expected of cen Meantime, the market for the taxtral banks when the treatment of in exempt-interest bonds of local govern Credit P olicy Clues ternal problems becomes pre-emptive. ment is still extended because of a The prime clue to any meaningful (2) A growing conviction that the continuing heavy calendar of offer shift in Federal Reserve policy will national economy is headed for new ings. Pools of institutional investment likely be found in the fluctuations of peaks in output, if not a period of money continue to buy into the mar the excess reserves of the commercial boom and strain. The gross national ket and the pricing of syndicates con b a n k in g system over forthcoming product rose to a new record rate of tinues aggressive. The abrupt late- weeks. For a long time this pool of $515,000,000,000 in the second quarter, July turn in the bond market has excess bank lending money was main a gain of almost 3 per cent from the caused much confusion among munici tained by the Federal Reserve at about low of last winter. The Federal Re pal bond distributors as to the size of $500,000,000. serve index of industrial production Probably, if the business boom com inventories that can be maintained went to 110 in June, only one point monly envisioned becomes a reality, prudently. The average long-term yield below the record high of January, this pool of excess reserves will gradu of representative tax-exempt issues 1960. Business profits of representa continues to approximate about SV2 ally disappear, not because of the en tive companies rose in the second forcement by the Federal Reserve of per cent. quarter nearly 20 per cent over the As the bond market thus enters a first quarter of the year. IN V E ST M E N T S . . . period of transition to a higher yield (Turn to page 62, please) (3) The economic implications of a structure, the attention of the finan Foens .1 tten lion On Fed Credit Po A s Hond Yields On in T Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 T rea su ry S e c r e ta r y itition to A d d r e ss it 7 th A it A C onvention ECRETARY OF THE TREASURY bridge, Mass.; Eliot J. Swan, president, C. Douglas Dillon will be among Federal Reserve Bank, San Francisco; the financial, business, and govern Savings Division President Gaylord A. ment leaders to address sessions of the Freeman, Jr., president, The First Na 87th Annual Convention of The Am er tional Bank of Chicago; Charles M. ican Bankers Association in San Fran Williams, Edmund Cogswell Converse cisco, October 15- Professor of Banking and Finance, 18, according to a Harvard University Graduate School preliminary p r o of Banking AdminisUation, Boston; S. gram of the meet Edgar Lauther, president, Irwin Union ing announced re Bank & Trust Company, Columbus, cently by the as Ind., and Courtenay J. Moon, vice sociation’s p r e s i president and creative director, John dent, Carl A. Bimson & Lewis, Inc., San Francisco. son. Mr. Bimson All of the convention sessions will is p r e s id e n t of be held in the Civic Auditorium. The the Valley Nation general sessions will be in Convention al Bank of AriHall of the Auditorium, while the z o n a , P h o e n ix . Division meetings will be in Conven Member banks of the San Francisco tion Hall and Larkin Hall. Clearing House Association will be of Registration will open on Saturday, ficial hosts to the convention. October 14, and will be in Brooks Hall, adjacent to the Civic Auditorium. Brooks Hall will also house the edu cational displays. Sunday, October 15, will be occupied with executive meetings of A.B.A. committees and other working groups. S R. L. R E IE RSO N R. W . G ALVIN In addition to Secretary Dillon, speakers scheduled to address the two general sessions on Tuesday, October 17, and Wednesday, October 18, include A.B.A. President Bimson; Robert W. Galvin, president, Motorola, Inc., Chi cago; R oy L. Reierson, senior vice president, Bankers Trust Company, New York, and movie star Ronald Reagan, Pacific Palisades, Calif. Speakers at the annual meetings of the A.B.A. divisions to be held on Monday include: George Champion, chairman of the board, The Chase Manhattan Bank, New York City; State Bank Division President Roland L. Adams, president, Bank of York, Ala.; Robert L. Myers, first vice president, National Association of Su pervisors of State Banks and secretary of banking for Pennsylvania, Harris burg; National Bank Division Presi dent Ben W ooten, chairman of the board, First National Bank, Dallas; Comptroller of the Currency Ray M. Gidney, Washington, D. C.; Congress man Thomas B. Curtis, Webster Groves, Mo.; Trust Division President Robert R. Duncan, chairman of the board, Harvard Trust Company, Cam https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis On Monday morning, October 16, a traditional convention feature will be the Agricultural Subscription Break fast sponsored by the A.B.A. Agricul tural Committee in the Gold Ballroom of the Sheraton-Palace Hotel. Commit tee Chairman John H. Crocker, chair man of the board, Citizens National Bank, Decatur, 111., will preside. W. B. Camp, president, W. B. Camp & Sons, Inc., Bakersfield, Calif., will be the speaker. Entertainment features in connec tion with the convention will include an informal reception on Sunday at the Sheraton-Palace Hotel, a ladies’ luncheon and fashion show on Mon day, and a cruise of San Francisco Bay on Monday and Tuesday. Ernie Heckscher and his orchestra will entertain in the Civic Auditorium on Tuesday evening. College Education Booklet Chemical Bank New York Trust Company, New York, has announced the publication of a brochure on the subject of financing a college educa tion. Entitled, “A New and Better W ay of Paying for College,” it points out that expenses have increased more than 338 per cent since the end of W orld War II. Chemical New York has been a pio neer in the development of low-cost financing plans for higher education. In the spring of 1959, the bank of fered a “ Tuition Loan Plan.” It was immediately successful, enabling par ents to borrow up to $15,000 for a fouryear course of study which could be repaid over a six-year period, with the life of the parent insured for this period. Now, in addition, the bank is offering a “ Planned Education Pro gram” which enables parents to antici pate college expenses when a child enters high school. i . 2 4 5 A tte n d S ch ool TOTAL of 1,245 banking officials from 41 states attended the 17th Annual Session of the School of Bank ing at the University of Wisconsin last month. Sponsored by the Central States Conference of Banke r s Associations of 16 mid western A B tion as follows: Class of 1961, 401; Class of 1961, 400, and Class of 1963, 444. Dr. O. Meredith Wilson, president of the University of Minnesota, gave the address at the commencement exer cises. Centennial A ppointm ent had a faculty of turers drawn from the fields of bankgovernment,^ 1 a w h . v. prochnow Hr. Herbert V. Raymond M. Cheseldine, Jr., has been granted a leave of absence from his duties as secretary of the Public Relations Committee of The American Bankers Association to devote full time to the post of executive secretary of the A.B.A.’s Centennial Commission. Mr. Cheseldine will coordinate the Centennial Commission’s planning for observance of the 100th anniversary of the nation’s dual banking system in 1963. Northwestern Banker, September, 1961 36 B e lu x e O pens Neue B u ild in g A D M IN IST R A T IO N B U ILD IN G opened by DeLuxe Check Printers in Twin Cities area. NEW administration building for DeLuxe Check Printers, Inc., has recently been placed in operation in Roseville, Minn., a suburb of St. Paul. This unique structure, with 24,000 square feet on one floor, will have no actual check processing equipment but will house among other administrative functions a complete pilot plant where experimental work can be done under manufacturing conditions but on a laboratory level. Although basic research problems associated with the development of the MICR program have largely been resolved, DeLuxe hopes to develop techniques that will insure even great er accuracy in encoding and normal check procedures. DeLuxe was one of the leaders in the check printing field in working with A.B.A. officials during the past decade to work out the basic MICR language for checks. The new administration building also will house the treasury depart ment, and divisions connected with research, production planning, engi neering, and machine development. All of the latter operations will be tied in with the pilot plant. An invitation has been extended by DeLuxe officials to all bankers to visit the new plant in Roseville. The com pany has executive offices in Chicago with a manufacturing plant there and in 11 other cities. A Drive-In T eller Contest Four judges who will pick the final ists in the Miss Drive-In Teller Con test have been named by The Mosler Safe Company, sponsor of the contest. The judges, radio and stage singing star Martha Wright; radio and record ing star Richard Hayes; cartoonist Milton Caniff and columnist Nick Kenny, will pick the three finalists who will be presented to the Ameri can Bankers Association Convention in San Francisco. No rthwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Grand prize for the winner, selected by a vote of the bankers attending the convention, will be an all-expense Caribbean Holiday for two, including jet transportation by Trans Caribbean Airways; one week in San Juan P. R.; one week in Aruba, D.W.I., and a cash award. Magnetic Bond Board First National City Bank’s munici pal bond division is the first in New York City to install a bond quotation board with magnetic letters and fig ures, thus replacing blackboard and chalk in service for so many years. The trading center is located at the bank’s d o w n t o w n headquarters, 55 Wall Street. BOND QUOTATION BOARD installed by First National City Bank, New York, is inspected by (left to rig h t): D. K. Pfeifer, sr. v.p. in charge of bond dept.; George E. Barnett, Jr., v.p. in charge of munici pals, and Franklin R. Saul, asst. v.p. in charge of trading section. The board was developed by Meth ods Research Corporation of Staten Island and is the fourth to be put in service. The others are in use in three Wall Street investment firms. Offers Bank Training A continuous training and refresher banking school for employees of cor respondent banks is now being offered without charge by the First National Bank of Kansas City, it was an nounced by Barret S. Heddens, Jr., president. The First National Bank will con tinue to encourage its employees to take the specialized courses offered by the American Institute of Banking in Kansas City. However, the increasing need for an understanding of the func tions of the entire bank by new em ployees led to a formalized program starting last January for both present and new employees, Mr. Heddens said. Results of this program have been so gratifying, he pointed out, that the classes are being opened to other banks as classroom space permits. The classroom is located in the Vic tor Building, immediately east of the bank on Tenth Street. Each class, lasting two weeks, consists of eight to 10 students. The students not only learn the various purposes and func tions of each banking department, but also gain a familiarity with much of the equipment normally used in bank ing operations. In charge of the training school is Willard L. Plummer, who for nine years was a teacher with the Ameri can Institute of Banking. Mr. Plum mer has worked in nearly every de partment of a bank and, as a part of the two-week training course, tours are made by the students through various departments to explain and demonstrate operations. Mortgage Interest Outlook Eighty-seven per cent of the bank ers participating in a current study of mortgage lending made by the Mortgage Finance Committee of The American Bankers Association believe that mortgage interest rates will re main steady over the next few months. Only 12 per cent of the bankers believe that rates may decline, and a negligi ble number think that a higher rate may prevail. W est Coast Move Robert F. Dewey, prominent Phoe nix banker, has joined the head office of The Bank of C a liforn ia , N.A., San Francisco, as vice president and t r u s t officer, ac cording to Edwin E. Adams, presi dent. Mr. Dewey was fo r m e r ly v i c e president of the F ir s t N a tio n a l R. F. D E W E Y Bank of Arizona. He is an Illinois native and has a J.D. degree from the University of Chi cago. 37 FLORIDA MAN FINDS THIS EMBLEM LEADS THE WAY TO FINANCIAL SUCCESS Here, in part, is the letter that won for Mr. N. of Florida a prize in Christmas Club a Corporation’s 1960 Competition: “ Eleven years ago I opened my first Christmas Club account. At first I was somewhat confused about the purpose of a bank account which does not pay interest. But as time went on, I became convinced that interest on the deposits was not the purpose of Christmas Club. “ The real purpose of the club began to stand out with each deposit I made. It was the ‘habit of pre-decided and weekly systematic savings.’ “ My first club helped my start in business, and my yearly Christmas Club checks have paid many tax bills or house repair bills which saved me many dollars in carrying charges. Christmas Club has also helped my credit rating in my bank. In fact, my Christmases are now really merry ones!” Mr. N., in learning to save and to use the services of his financial institution, is a living example of the two most important reasons for Christmas Club! 1. It is the “ kindergarten” that starts people on the road to financial responsibility. 2. These people often become customers for the other services you offer. We would like to talk to you personally about about these and other advantages of Christ mas Club. Our staff member for your area can give you complete information. A note to us will put him in touch with you. There is no obligation, of course. C h ristm a s C lu b a Corporation 230 Park Avenue, New York, N. Y. Founded by Herbert F. Rawll Builds Character • Builds Savings https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Builds Business for Financial Institutions Northwestern Banker, September, 1961 38 R eserve A (Continued from page 29) gested because they represent the times when the Fed balances are “caught up” with the deposit fig ures. The second Friday is suggested because if a large excess has accumulated it is better to make the adjustment (that is, transfer out, invest, or sell Fed funds) on Friday than to wait until Monday. The final Wednesday check-up is essential to determine whether last day funds must be provided to avoid a deficiency. 3. Make simple but adequate studies of the bank’s sea sonal cash needs. This is elementary but important. Make simple graphs showing the seasonal highs and lows in deposits and in loans. These changes may be related to crops, local tax collections, seasonal indus tries, or other predictable movement of funds. Such studies (often simple graphs on drugstore graph paper) will provide a basis for determining an ade quate secondary reserve of highly liquid securities. They will also give the bank reasonable advance estimates of the reserve needed. W hy R educe E x c ess R eserves? Judged by contacts with bankers in the Seventh Dis trict, many bankers feel that it is important to carry excess reserves. Perhaps some of them have been influ enced by statements in textbooks and other literature on First o f Chicago Elects Gaylord A. Freeman, Jr., president of the First National Bank of Chicago, has announced three promotions in the official staff and the election of three new officers. monetary management which have indicated that if the banking system had no excess reserves it could not in crease loans and investments except to the degree that the Fed created reserves to support the expansion. This is, of course, theoretically true. But the converse is not true, because so many country banks do not manage the reserve account carefully enough to know just what ex cess reserves they are holding. Actually, there is no economic or monetary reason w hy banks which carry a calculated secondary reserve for seasonal cash needs should carry excess reserves. There are important internal reasons why they shouldn’t, chiefly that they can with very little effort increase earnings. The same country banker who will move heaven and earth to attract a new account of, say $25,000 average bal ance, will carry excess reserves averaging more than this and not move himself to take the simple steps necessary to incorporate these funds into earning assets. Carefully managed reserve accounts also would be a help to the monetary authorities. Complete elimination of excess reserves is not likely (probably not possible), but if the accounts were managed so well that substantial excesses occurred only at such times as short term funds commanded uneconomic returns, they would then be a useful measure in money management. More importantly, bank credit would be more responsive to monetary policy. As it now is, the country banks carry substantial excess reserves even in the tightest money periods.— End. H. Stanley Pickford was elected as sistant vice president of Division “ F,” the correspondent bank d iv is io n ; Ralph Alston, Jr., was named trust officer in the personal trust adminis tration division of the trust depart- it t ak es m o r e t han ment, and John L. Behr was elected an attorney in the law department. The newly-elected officers are Frank lin E. Agnew III, assistant cashier, Di vision “ C” ; Clyde H. Crooks, assistant trust officer, trust department, and John E. Thompson, assistant cashier, operating and personnel department. F ir s t A w a r d M A C H IN ER Y to m a k e EN VELO PES it t ak es ID EA S, KN O W -H O W and EX P ER IEN C E Heading into our third generation of HEINRICH'S we think the hard, cold facts of good business have been drilled into a family and personnel . . . it takes ideas, know-how and experience to do the ¡ob well and be successful, for any business success is dependent upon top performance for those it serves. ♦Call us about our special bank envelopes! BOONE, IO W A and 108 Washington Ave. N. MINNEAPOLIS Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PHOENIX photographer Herb Mc Laughlin (left) accepts special award presented by Valley National Bank at city’s Advertising and Edi torial Art Exhibition, first annual competition of new Phoenix Art Directors Club. Besides plaque, Mr. McLaughlin received $100 check from the statewide Arizona bank for work chosen from 200 entries as “best of show.” Presentation was made by Mert Eeade, VNB adver tising director (right). Entries are on exhibit at new million-dollar Phoenix Art museum. Valley Bank plans making award annually to honor city’s outstanding commercial artist, photographer or art director, according to Mr. Eeade. “ Looks and sounds as if the glass weren’t Wwhen „ te lle r and customer separated there1 byareglass, and with outdoor noises adding to the difficulties, it takes an excellent com munications system to make a trans action easy. Mosler equipment has this kind of system. That’s one rea son why The Colonial Bank and Trust Company, of Waterbury, Connecticut, chose M osler equipm ent fo r its Drive-In Window installations. Colonial has two Mosler Drive-In Windows and a Walk-Up Window. Mr. John H. Payne, Jr., Executive Vice President, comments on their value to Colonial: “ Our customers have found using the Mosler DriveIn Window a truly ‘personal’ experi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ence. The window looks and sounds as if the glass weren’t there. The rapidity with which the teller can operate the drawer, plus the clarity of the communications system, has truly enabled us to reach a new high in customer relations. THE RADICAL IMPROVEMENT “ The average transaction at these windows takes about 20 or 30 sec onds, with absolutely no inconven ience to the customer. The new Mosler concept in banking services has radi cally improved customer servicing and has up-dated banking practices.” THE DECISION FOR MOSLER Mr. Payne sums up the decision in favor of Mosler equipment. “ In the fin al analysis, there were exactly three factors which influenced us in our selection of Mosler equipment: ( i ) Customer needs, (2) security, and (3) over-all cost. Mosler equip ment won on all three counts.” PROBLEM S O LVIN G -A MOSLER SPECIALTY From auto banking to the largest vaults, Mosler design and manufac turing experience is at your service. If you are considering a new branch or expansion, w rite fo r M osler’s “ AUTO BANKING IDEA BOOK” and information on any problem involv ing banking equipment. The Mosler Safe Company, 320 Park Avenue, New York 22, N. Y. The Mosler Safe Company World’s Largest Builders of Safes and Vaults Horthwestern Banker, September, 1961 40 3 7 th A n n u a l N A ttA C f ’nnrention in Chicaifo. S ep tem b er 1 1 -1 3 LL roads will lead to Chicago this month for America’s bankers when the 37th annual national conven tion of NABAC, The Association for Bank Audit, Control and Operation convenes in the Conrad Hilton Hotel, September 11-13. In addition to a full three-day pro gram of technical sessions r a n g in g from the b a s ic banking function of a u d i t i n g through a u to m a tion, expense ac counts and per sonnel to the pric ing of bank serv ices and the mar keting aspects of banking, the na tion’s major manufacturers of bank equipment will have their latest equip ment on display and in operation. The convention will be called to or der at 10;00 a.m., Monday, September 11, by NABAC National President W inslow E. Pike, vice president and controller, The First National Bank of A P L A N N IN G D. U RICK G. A. F R E E M A N , JR . Atlanta, Ga., who will introduce Chi cago Mayor Richard J. Daley, who will officially welcome the more than 2,000 bankers expected to attend. Respond ing to Mayor Daley’s welcome will be the immediate past national president of NABAC, Arthur C. Suhrbier, audi tor, Continental Illinois National Bank and Trust Company of Chicago. Opening address of the convention will be delivered by Sam M. Fleming, vice president, American Bankers As sociation, and president, Third Nation al Bank, Nashville, Tenn. The key note speaker, Gaylord A. Freeman, Jr., president, The First National Bank of Chicago, will be introduced by Con A NEW BANK? Use St. Paul’s service AVAILABLE W ITH O U T E X T R A COST, the St. Paul offers banks a special service as a plus factor in our Bankers Blanket Bond Policy. M any banks, large and small, consult with the St. Paul about the design and construction of protective equipment; we regularly assist banks in developing safeguards to handle currency. Just one more reason why m ost Upper M idwest banks carry St. Paul’s Bankers Blanket Bond coverage. Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis vention General Chairman Delbert N. Urick, vice president and comptroller, Harris Trust and Savings Bank, Chi cago, 111. Technical sesions will start Monday afternoon with a panel “ The New Look in Auditing.” Moderator will be Charles A. Strahorn, president of the Winnetka Trust & Savings Bank, Winnetka, 111. The balance of the NABAC program consists of: Tuesday M orning: Session I, “Auto mation Problems and Pitfalls” — Mod erator, Richard A. Byerly, director, NABAC Research Institute, Chicago. Session II — “ Semiautomated Sys tems— Two Years Later”— Moderator, John N. Raleigh, Technical Division, NABAC, Chicago. Tuesday Afternoon: Panel Session— Uncle Sam Looks at the Expense A c count.” Panel participants will be: Hugh W. Fraser, general vice presi dent, The Citizens and Southern Na tional Bank, Atlanta, Ga.; A. Elliot Pinkus, assistant comptroller, First National City Bank of New York, New York, and Charles Z. Meyer, chairman of the board, Upper Avenue National Bank of Chicago. “ Personnel Evalua tion Techniques,” by John P. Cleaver, J. P. Cleaver Company, Princeton, N. J. W ednesday Morning: “ Developing Executives for Selling Present Day B a n k in g Services,” by Edward D. Smith, president, The First National Bank of Atlanta, Ga.; “ Marketing As pects of Banking,” by James J. Nance, president, Central National Bank of Cleveland, Ohio; “ Pricing Special Bank Services,” by Wallace M. Davis, presi dent, The Hibernia National Bank in New Orleans, La. The W ednesday afternoon program will follow a “ Consult the Experts” formula developed by NABAC and used at recent NABAC seminars. Attend IB A Sem inar Bank officers from N orthwestern B anker area who attended the Inde pendent Bankers Association’s 4th An nual Seminar for Senior Bank Officers at Harvard University last month were listed as follows: Colorado: Herbert L. Backon, United States Bank of Grand Junction, and George B. McKiley, First National Bank in Glenwood Springs. Iowa: Rollo H. Bergeson, West Des Moines State Bank, West Des Moines; Carroll W. Grimes, The First National Bank of West Union, West Union; Ward R. Hatter, The Iowa County Savings Bank, Marengo; Alvin S. Renaas, Decorah State Bank, Decorah; Ed H. Spetman, Jr., Council Bluffs Savings Bank, Council Bluffs; Thomas 41 M. Stoker, Farmers Savings Bank, Shelby. M innesota: Clarence J. Wiersma, The First National Bank of Pipestone; Selmer L. Jerpbak, Richfield Bank and Trust Company, Richfield; John D. Chisholm, Olmsted County Bank and Trust Company, Rochester. Montana: Michael R. Kloster, The Citizens State Bank of Scobey, Scobey; Rex B. Stratton, Security Trust & Sav ings Bank, Billings; Albert F. Winegardner, First National Bank in Bill> ings, Billings. Nebraska: W ayne R. McKinney, Platte Valley State Bank, Kearney. South Dakota: W. C. Talen, Farmers & Merchants Bank, Watertown. the line m o v in g ... Host French Study Group A French distribution study group visited the City National Bank & Trust Company, Chicago, recently, for a conference on financing of super markets and shopping centers and bank advertising. The group, 15 in number, was sponsored by the French Embassy in Washington. FRENCH STUDY GROUP included, left to right (standing): Claude Draillard, Cen tre Régionale D’Expansion Economique et de Productivité ‘Marche-Limausin’ Li moges, France; Michel Lescoeur, managing director, PUBLICIS, Paris; Jean Decugis, vice president, Banque Régionale D’Es compte et de Depots; seated, left to right are: Arthur T. Leonard, president, City national Bank & Trust Company; Michel Cognard, marketing consultant, A.F.A.P. (French Productive Center). Attending an all-afternoon confer ence, the group heard a series of talks with question periods after each talk. The speakers were: Arthur T. Leon ard, president; W illiam H. Miller, sen ior vice president; David M. Sweet, senior vice president; Walter Ast, as sistant vice president, and Jerry R. Germaine, advertising manager. W ayne H umm er & Co. S JL V and keep the business! Waiting customers are impatient cus tomers . . . and some just don’t come back. The growing problem of pay ment delays plague many lending firms, for time lost at the window costs money and friendships. The new Cummins booklet “ L o n g L i n e s and Short Friendships” gets right to the core of these hidden costs and shows . . . in minutes and dollars . . . how the customerpreferred Cummins Coupon Payment System improves service, simplifies posting, reduces costs and prepares for future automation. The facts about the ease of conversion to automatic accounting are also detailed. Ask your Cummins Representative for a copy, or write: BRANCH OFFICES 814 12+h Street Denver 4, Colorado AComa 2-0105 528 West 2nd St. Davenport, Iowa DAvenport 3-0047 1524 Locust St. Des Moines 9, Iowa CH erry 4-3836 1719 Nicollet Ave. Minneapolis 3, Minn. FEderal 8-0833 4007 Riverside Road Billings, Montana 8-8333 4607 Wakeley St. Omaha 32, Nebr. 558-1676 CHICAGO M EM BERS NEW YORK STO CK EXCH ANGE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September, 1961 42 Étant* w s h ik e • (Continued from page 27) a friend (?) ask, “ Do you bring home samples?” And can you still manage a smile after the 1,000th inquiry? * * * Began 15 Y ears A go W e asked Mr. Clarke when he be gan to write his Business N ews A b breviated and he told us: “ Historical ly, I started writing these bulletins about 15 years ago, but at that time I followed no weekly schedule, and we distributed the occasional copies only to the officers and directors of the bank, I suppose about 75 people in all. This was a letter-sized page ( 8 V2 x 11), was dittoed in a blue colored ink and probably was a bit messy. “ Some of my fellow officers spoke in a friendly way about the sheet, and a few suggested that they would be w ill ing to read a couple of pages instead of the one. I have always felt, how ever, that most people much prefer one page to two, and I have kept it that way. A few years ago I increased the size to legal. “ Probably about three or four years ago some of the officers mentioned that they had customers who would like to get on the mailing list, but at the outset I discouraged it. I was afraid that if I started an outside mail ing list I might have to write in a more serious vein. I knew that the O v e r half a century of experience with debt obligations is applied m our service to hank and instrtu tion a 1 1n vestmen t officersr pension funds bank letters which came across my desk, at least, were very sedate and solemn as they recounted the number of freight cars which had been loaded the week before, or the billions of kilo watt-hours of electrical energy that had been generated, or the billions of dollars of Gross National Product. I wanted none of this. I wanted to write in part with my tongue in my cheek, and I knew I could do so if I kept it in the family. W ider Circulation “ I guess the first break in this was my willingness to send 14 copies to our law firm—but I knew these fel lows and they knew me, so they knew that I would not approach anything in a very ponderous way. As the pressure grew to mail out the letters, I talked it over one day with Law rence F. Stern, chairman of the board, who said that he usually circled some item in a copy of the letter which he received and sent it out to a friend. In other words, one copy was being mailed out, so he suggested that I put anyone on the list who asked for it, but he thought it best to keep the same heading at the top. That is why the top of the letter reads as it does. “ So, from the few people who re ceived it three or four years ago it has grown, so we now mail out 3,000 copies, and each week there are new names added to the list. Of course, we outgrew the ditto machine some years ago, and we now use multilith, which enables us to get a sizable vol ume. I suppose 75 to 80 per cent of these letters go to bankers, but we find that they pass them on to others who in turn write me—and I put any one on the list who wishes to read it. “You ask what success I have had with it? It seems that it is still grow ing rather rapidly, so I guess I can say that I have been lucky. B an kers H ave H um or and individual investors. H A LS EY , S T U A R T 123 SOUTH LA S A L I E STREET, C H I C A G O 90 • <1 N orth w e ste rn B a n k e r, S e p t e m b e r , 1961 In c . 35 WA LL STREET, NEW Y O R K 5 AN D O T H E R P RI N C IP A L CITIES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C O . “W hat h ave I learned from it? W ell, one th in g for sure— that hankers have ex cellen t sen ses of hum or and th a t th ey lik e to w rite in to tell me that th ey enjoy the letter because of its ligh t touch. It is a rare letter that does not admonish me: ‘Never change your style!’ Of course, I shall never change, because if I had to go com pletely serious I then would not enjoy writing it and would stop. “ The letter goes out to bankers not only in this coutnry, but to over 100 bankers abroad, and I find that they, too, enjoy the light touch. Many have written to tell me that they receive a number of letters and circulars from American banks, and up to the pres ent had always thought that when a 43 you can ad d one of the broadest In tern atio n al Banking D epartm ents in the country... withouadding Use Continental’s International Banking Depart ment as your own . . . and gain access to some 33,500 banking offices in the Americas, Europe, Near East, Far East—everywhere! Continental is literally a “ world of banks.” Our large and expert staff is experienced in every phase of international banking, and stands ready to serve you and your customers in a host of ways. For instance: Informa tion on foreign political and economic conditions. Commercial Letters of Credit, Export Collections, Foreign Exchange, Remittances, Credit Reports. And if you have a specialized need, we have the facilities to handle it. Your inquiry will be most welcome. Phone us at STate 2-9000, Chicago. C O N T IN E N T A L AN D Member F. D. I. C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TRU ST IL L IN O IS N A T IO N A L COM PANY OF Lock Box H, Chicago 90 B A N K C H IC A G O Northwestern Banker, September, J96I 44 Everything grows in I n iA / A IU W H GAS REVENUE INCREASES SINCE '47 IOWA POWER . . . including 386 Iowa Power’s gas and electric INDUSTRY’S revenues— AVERAGE consistently ahead 350 of industry averages. Iowa Power serves 24 counties—a balanced agriculturalindustrial area. For Annual Report, write address below. ELECTRIC REVENUE INCREASES SINCE '47 banker in this country sat down to write he became a very grave fellow as he lost himself in a sea of statis tics. They insist, on the other hand, that my short letter gives them a few chuckles as well as a view of America which they had not ordinarily seen. Letters From R eaders “ There are some subjects which I touch on which always seem to bring in a lot of mail. For instance, as a non-smoker, my worries about cigar ettes and cancer cause many people to get in touch with me. When I men tion old things, such as covered bridges, antique automobiles, or even snuff, I am almost certain to get a del uge of letters. Since I was born and raised in Beloit, Wis., I still have a feeling for the small town, and my comments along that line seem to reach a lot of others who either still live in smaller places or have a nos talgia for them. “ I am never quite sure, of course, what will arouse people’s interest, but some time ago I was impressed when I read about a drive which was being started to raise money for the Kidney Fund. I mentioned this in my letter and pointed out that there apparently weren’t very many organs left now for which drives could be organized, but I suggested that, so far as I knew, no one was doing anything for the a hearty welcome for the BUSINESS TRAVELER From coast +o coast, mo tels displaying the Con gress sign proudly offer fine accommodations to traveling America. Diner's Club, American Express and Carte Blanche credit cards honored. Free advance reservation serv ice. Enjoy your trip more — travel first class — travel the Congress way. CONGRESS Motor Hotels 2503 Santa Monica Boulevard Santa Monica, California free! AND LIGHT COMPANY DES MOINES 3, IOWA Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W rite for literature and new TRAVEL G U ID E listing fine motels from coast to coast, inspected and approved by Congress of Motor Hotels. spleen, and I had decided to set up the Spleen Foundation. In the weeks that followed I received the largest col lection of Confederate money, dimes which had been sawed in half, pennies with holes in them, that has ever gone through the mails. I also re ceived a call from the president of the Kidney Fund. Apparently someone had mailed him a copy of my bulletin, and he was highly indignant about the whole matter. Started J elly B ean W ar “ Once I was disturbed by an item 1 read in that competitive paper, The Wall Street Journal, that the Pure Food and Drug fellows planned to stop the sale of black jelly beans be cause there was some coal tar deriva tive in the color that wasn’t healthy. Recalling the billions of these beans that kids all over the country had de voured with no ill effects, I comment ed on this in my letter. I also called for a rally of friends of black jelly beans for a march on Washington, pointing out that in 1894 General Jacob S. Coxey had led an army of 20,000 men to our capital on a mission no where near as important as this one. Somehow this caught on, and for a long period letters poured in, as did supplies of black jelly beans. Fortu nately, the Pure Food and Drug fel lows called off the whole thing, so we didn’t have to march, but it showed me how nice, friendly people can be light-hearted. “ On the other hand, my letter is not all light, as you know. In fact, I put a great many business items into it, since that is its main purpose, but I use the humor to make it easier to read quickly. Naturally a great many people ask me where I find the items that go into this, since many of them seem to be entirely new. All my life I have read almost every type of pub lication, including trade magazines and others which do not have a very wide circulation. These publications combined with the other news media, including daily papers, provide me with more information than the aver age person. Each one of my weekly bulletins contains about 1,200 words, which is a fair amount, of course. I do all my writing at home—do it in long-hand—usually on Sunday. K een S en sitiv ity N oted “Another unusual development. I find that some of my readers will send the letter to the top executive officer of some corporation that I have re ferred to. He will then in turn write me. These letters are usually very in teresting, and I am often able to use material from them for my future bul letins. It also shows, I think, how Feeder loans, when properly made, represent sound credit risks benefiting the borrower, the bank and the entire com munity as well. Over the past several years there has been a substantial increase in all types o f agricultural loan demands. A s a result, many banks are turning to The Live Stock National Bank o f Chicago fo r assistance in meeting the requirements o f their cattle feeder customers. W hy Live Stock National? Because this bank’s more than 90 years o f experience in cattle loans make it easy to work with. Our specialists are at your service to assure satisfaction fo r you and your customers. We look forw ard to working with you in this and in any other correspondent services you may require. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ffl,e LIVE STOCK tAa/iona/ RANKl ofl 4150 South Halsted Street, Chicago, Illinois MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION SERVING INDUSTRY AND AGRICULTURE FOR OVER NINETY YEARS 46 The NATIONAL BOULEVARD BANK of Chicago sensitive big business is these days to any statements which are made about it, and how willing the top brass is to cooperate in every way. In almost all of these cases we end up by adding this executive’s name to our mailing list.” Perhaps Mr. Clarke’s success proves again that: L augh and the w orld lau ghs w ith you, W eep and you w eep alone, F or as a rule each darn fool H as troubles of h is ow n.— End. B A YLIS, JR. H. C. ST R A IT F. H A M IL T O N G. T. DA V IE S Bankers Trust Prom otions H. A. W A T K IN S Located in the famous Wrigley c. will continue as head of Division I of the metropolitan banking department, while Mr. Davies is in charge of the international banking department. E. F. E B E R T Harry A. Watkins and Edward F. Ebert have been elected senior vice presidents of Bankers Trust Company, New York. Mr. Watkins will be in charge of the new national banking department, and Mr. Ebert will head the newly consti tuted metropolitan banking depart ment. Mr. Watkins has been with the bank since 1941. Previously, he spent some years with the former firms of J. P. Morgan & Company and Morgan & Cie, Paris. Mr. Ebert has been with the bank since 1928. The bank has also announced that four vice presidents have been elected to the new position of first vice presi dents. They are Chester Baylis, Jr., Frank Hamilton, Harold C. Strait and George T. Davies. Mr. Baylis is in charge of the east ern division and Mr. Hamilton of the central division of the national bank ing department of the bank. Mr. Strait INew Personnel Executive T. H. Boyd has been appointed an executive counselor in the banking finance division of Cadillac Associates, Inc., 29 East Madi s o n B u ild in g , Chicago 2, 111. He joins A. D. Johnson, head of the banking and finance d iv is io n . P r e v io u s ly , Mr. Boyd was active as a management consultant to int . H. B OYD dustry. He is a graduate of per sonnel management at the University of Chicago, and has held faculty ap pointments at the University of Chi cago and at Roosevelt University. Cadillac has served the banking and business field for over 35 years in the personnel placement field. Building at the head of M ichigan A v e n u e ’ s " M a g n if ic e n t M ile ,” the N ational Boulevard years Bank of Chicago o ffe rs corre spondent banks a unique serv ice a ffilia tion . Won’t you visit us on your next tr ip to Chicago? TRUST INVESTMENT COUNCIL OF STEA DY G RO W TH IN M E M B E R S H IP Through A s s is tin g C om m unity Banks “FROM THE TRUST VIEW POINT ” For information on the Council's services, write Dept, NATIONAL BOULEVARD BANK of Chicago Wrigley Bldg. • 400-410 N. Michigan Ave. Superior 7-2323 MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION No rthwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis nw-13 STUDLEY, SHUPERT Trust Investment Council 1617 Pennsylvania Boulevard, Philadelphia 3 1 55 Berkeley Street, Boston 16 47 If you do business in Asia or the Middle East talk to the people at Chase Manhattan From the Mediterranean to the Paci fic, Senior Vice President James A. Jacobson is a man you can rely on for sound business guidance. Much traveled and experienced in the commercial and industrial centers o f the world, he has acquired a broad understanding o f people, business and banking in the vast Middle East, Asian and Pacific islands area. This intimate knowledge of almost half the globe and its rich human and natural resources is always available to Chase Manhattan’s correspondents in the United States. So, too, is the guid ance o f Chase Manhattan's overseas correspondents and branches locally implementing the financial planning performed by James Jacobson and his International Department Staff. Why not talk to the people in Chase Manhattan’s International Department about business in the Middle East, Asia, the Pacific islands and Oceania now? Simply write to International Depart ment, The Chase Manhattan Bank, 1 Chase Manhattan Plaza, New York 15, or call LL 2-2222 any time. 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Write us today and let us give you complete information regarding territories currently avail able. All correspondence held in confidence. H. O . C H A P M A N President S. H. W IT M E R Chairm an of the Board Topeka •Sioux Falls Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 49 INSURANCE in e r v a s e Ufar A gen cies Oí fice E fficien cy A N EFFICIEN T office staff is an important part of any successful business, but particularly important to the success or failure of the modern-day insur ance agency. Increasing volume of paper work makes it necessary for the agency owner or manager to have a staff that can handle the detail work, allowing him and the solicitors to make more selling calls. In order to give you some ideas about how you can in crease the efficiency of your office staff, the N orthwestern B anker surveyed some of the top agencies in the Central United States. Agencies were selected by the various state association secretaries for their efficient and success ful agency staff operations. A The A verage E m p loyee From this survey, we find that the average staff mem ber is between 25 and 30 years old and has no prior expe rience in an insurance agency. She is being paid between $60 and $70 per week and works about 40 hours a week. She is skilled in shorthand and typing, has a good knowl edge of mathematics, and some knowledge of bookkeep ing, is interested in the insurance business, has a pleasing personality, is cooperative and likes to meet people. She may receive some form of hospital insurance bene fit, she receives periodic raises as an incentive, has good equipment to w ork with, and in some instances will have the benefits of a retirement plan. She probably will re ceive a bonus at the end of the year. Since she has not had any prior insurance agency expe rience, she most likely has been trained on the job. She may have attended some insurance agency seminars and takes part in periodic office procedure discussions with management. In addition, she may be taking a correspondence course on insurance and reads as many articles as possible on insurance agency operations. Once an employee has been hired, the major problem becomes one of obtaining maximum efficiency from the new employee and other members of the staff. Following are suggestions for increasing office efficiency from lead ing agencies that took part in this survey. (W henever https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O R TH W ESTER N BANKER S u rvey possible, premium volumes are listed with the name of the agency.) b G ottsacher A gen cy, Sheboygan, Wis.—W e go to the local high school business training department head each year and obtain the three top students. W e interview them, discuss their abilities with two or three teachers and employ one. These girls start with us at $25 higher than average wages. This has been highly successful for a very excellent staff. ■ The G iberson In surance A gency, A lton, 111. — Good equipment with which to work is absolutely essential for an efficient staff. Delegation of work and expression of confidence that the employees are capable of handling the work also adds to the efficiency of the staff. Use of parttime help where expedient also is valuable to the morale of the staff. ■ Bacon In surance, Eldorado, Kan.; P rem ium V olum e $225,000— Every care should be taken before hiring an em ployee and the insurance training should be given very slowly but thoroughly. Once the basic background has been attained, let the employee rate and write policies on his or her own. At first, carefully check the policy before it is typed and then check again before the policy is delivered. It is wise to make an employee feel independent as soon as practicable. Make them responsible for their own achievements and their own mistakes. ■ The A & .1 A gen cy, Decorah, Iow a— Regular confer ences with the office staff will help to weed out the prob lems that exist, and also will help bring out new ideas. A new member of the staff should be thoroughly grounded in office procedures and should understand why certain procedures are followed. Everything should be taken a step at a time so that there will be as little confu sion as possible in the minds of new personnel. New equipment should be considered at all times, with the purpose of increasing efficiency. All equipment should be kept in top working order at all times, and personnel should be trained to care for this equipment properly. n Thorpe Bros., Inc., M inneapolis, M inn.—W e feel that a simple office procedure system is one of the most impor tant factors for top efficiency from staff members. It is No rthwestern Banker, September, 1961 50 less costly for the agency, and em ploy ees are more satisfied. An efficient layout of the office and modern equip ment are important. Too many offices have antiquated and rundown equip ment. ■ The H u dson A gency, Iow a City, Iow a; P rem ium V olum e $200,000— It is our feeling that the most important thing we can do to increase efficiency of office help is to make every effort to hire people who are pleasant and who help in creating an atmosphere that is conducive to an industrious and pleas ant office. W e have learned that peo ple who are happy and like their work are much more efficient and enthusias tic about their work. It is our feeling that the employer has a great deal to do with setting the tone, or atmosphere, that is so impor tant. To obtain and keep good office help, it is necessary to pay the girls a little more than average. s B row n & D ieckm an, W aterloo, Iow a — The six points we consider most important to increase the effi ciency of our staff are as follows: 2. Take a good look at the boss, and see where he can improve. 3. Look around and see what others are doing. 4. Decide what is important and what isn’t. 5. Be uniform and consistent. 6. Plan the work. List those items that must be done every day and set a time to do them. The same schedule should be followed each week and each month. ■ Carter-Rogers, Inc., F ort Hodge, 1. Have a system to handle every Iowa; P rem ium V olum e $250,000— Our thing. suggestions are as follows: 1. Try to encourage long employ ment after selecting an employee that has the proper ability and qualities. Give adequate pay or bonuses, but do this with some caution since it might become too expensive. 2. Have good equipment. 3. If possible train properly. It is unfortunate that there are no good in surance schools for clerical help in this area. It takes about three years to be completely trained in an office such as ours, so if turnover is large, it becomes a rather expensive training process. ■ W allace K oster, Inc., Salm a, Kan., P rem ium V olum e $100,000-$200,000 — W e start to train the outstanding high Homeowners and Tenants school girl student, who will not be Add'! can take advantage able to go to college, during the last Living six months of school by having her o f the “ N E W " in work in our office after school. The Expenséis insurance with the one new employee a year provides us with adequate efficient help. H O M E O W N E R S PO LICY W e start these girls at $160 per month and increase $5 per month until they reach $275 per month. Then we One Policy give bonuses instead of raises. In this One Premium way it is unnecessary to pay high sal One Renewal Date aries for a month or two and then have the girls leave. W e find our girls are very pleased with this plan.—End. W estern M utual is a m ultiple-line T h e P a c k a g e P o lic y Combines Homeowners Needs for Protection non-assessable com pany w riting under the A m erican A ge n cy System, starting the ir 55th year in insurance. A ge n cy inquiries are welcomed. Western Mutual Insurance Co. 616 10th Street DES MOINES, IOWA A Non-Assessable Multiple Line Company— Since 1907 Northw estern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1st National City Ups 8 First National City Bank of New York announces the following promo tions of national division officers who travel in the bank’s districts through out the country: From assistant vice president to vice president: James S. Deely, New England district. From assistant cashiers to assistant vice presidents: Robert M. Borrs, cor respondent bank department; Richard B. Dickson, New York-New Jersey dis trict, and W illiam F. Hohman, south ern district. From official assistants to assistant cashiers: John E. Porta, middle west ern district, and Donald M. Roberts, western district. o ö AUTOMATION PROGRAM ■: L e 3U 5& 7aq n >'i:ii\, PRESENTED BY NATIONAL BANK and TRUST COMPANY DES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M OINES, IOW A MICR + AUTOMATION = BETTER SERVICE This brochure introduces you to some of the con cepts and procedures of automation at Central National Bank and Trust Company of Des Moines. view of the complete MICR program and specifi cally outline how MICR will operate at Central National. T h e K e y to A u t o m a t i o n A u to m a tio n S e r v i c e for C o r r e s p o n d e n t s The specially-shaped numbers on the cover are no doubt recognizable as the official characters used in the Magnetic Ink Character Recognition Program of the American Bankers Association. MICR is the key to automation at Central National, just as it is the key to automation for all commercial banks. A Brief R e v i e w of M IC R These pages give a general summary and re In addition, we are announcing a plan whereby our sorting and computer equipment may be shared with our correspondents. S o m e Q u estion s and A n sw e rs We hope this brochure will answer some of your questions about automatic check handling. We shall be happy to visit with you at any time regarding details you may wish to discuss. The Central National A utom ation C enter w as planned by H. C. W inder, V ice P resident and Cashier; Jack P arm enter, Manager, Bookkeeping Department; D ew ey P. Tullis, Manager, Proof Departm ent; and Roger Hicks, Manager, Transit Department. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Q MICR IN REVIEW: QUESTIONS AND ANSWERS Q How does MICR work? A Checks and deposits are imprinted with mag Q What is the MICR program? netic ink characters that conform to what ABA has designated as E-13B type font. The magnetic ink contains iron oxide particles which are mag netized by machines handling the documents. Then, the documents are processed by high-speed electronic equipment. A The initials M ICR are an abbreviation of Q How many characters are there in the MICR “ Magnetic Ink Character Recognition,” the name of the American Bankers Association program to develop a common machine language for banks. This machine language was designed to be read able by the human eye as well as by the electronic eyes of business machines. system? Q Why is the MICR program necessary? A The use of checking accounts in the United States has reached the point where one out of every three persons has a checking account. Some thing like 13 billion checks a year flow through the nation’s 14,000 banks; by 1970, the volume of checks is expected to reach 22 billion a year. While this anticipated volume may seem unrealistic, it should be remembered that since 1954, the volume has actually increased over 50 percent. As we all know, each check must now go through many manual sorting, listing, posting and filing proce dures. The MICR program removes the burden of this work by mechanizing the check-handling procedures. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A There are fourteen characters in the type font — digits 0 through 9 and four control symbols. Q Why are stylized numerals necessary? A The stylized characters resemble the digits they represent. The different shapes are necessary to create electronic wave forms of a distinctive shape to permit recognition by the machines and to pre vent incorrect identification by the human eye. Q What makes E-13B characters usable as a com mon language for banks? A Uniformity makes MICR characters practical. MICR specifications were established as the result of a cooperative project sponsored by the Ameri can Bankers Association and business equipment manufacturers. These specifications govern the check format, type of characters, size of char acters, etc. Q Where can a hank obtain technical specifica tions of MICR? A The Bank Management Commission of the Am erican Bankers Association, 12 East 36th Street, New York 16, N.Y., has published booklets No. 147, “ The Common Machine Language for Mechanized Check Handling” and No. 150, “ Check Standards Under the Common Machine Lan guage. ABA also has other material.” Q How soon will all hanks be using the MICR check handling system? A Many banks are now using MICR encoded checks. A number of commercial banks have in stalled and are using automated equipment. Five Federal Reserve Banks now have pilot installa tions. More and more banks are entering the pro gram each day. You have, no doubt, noticed that some checks drawn on your own bank have been encoded before being presented for payment. Q What is involved in the redesign of checks? Q What are the advantages to a hank participating in the MICR program? A In general, the increasing volume of checks will flow freely, without delay in collection time. In some instances, encoded checks may receive pre ferred handling. For the individual bank, checks can be handled in less time; processing can be more accurate; time consumed in checking for errors can be eliminated; personnel will function more effectively, and space requirements will be reduced. Cooperative plans, such as outlined herein, where electronic equipment is shared with correspondents, result in a reduction of sorting time as well as bookkeeping time. Q What are the first steps a hank should take to get into MICR? A 1. Decide on an acceptable account numbering A It may be that no change is necessary in your case. It is only required that a % inch band, free of magnetic imprinting, be left across the bottom edge of the check. It should be remembered that in some cases, the encoded amount on a check may partially print over a portion of the signature on checks that have not been redesigned; how ever, the open style of E-13B type does little to affect the legibility. There should be no need to discard any existing stocks of checks. Q Who encodes the amounts on checks? A Ordinarily, checks will be issued without the amount being encoded in magnetic ink and this encoding will necessarily be done by the first bank receiving the check for collection. This permits further handling in intermediate and paying banks to be automatic. plan if you have not already done so. Q Do encoded checks cost more? 2. Arrange to have both ABA transit number and account number imprinted with magnetic ink on all new check orders, both business and personal. The A B A transit number and routing sym bol should still appear in the upper right hand corner of each check. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A Time was when this was true; however, many printers have announced that since the number of orders for magnetically encoded checks now ex ceed the orders for conventional, non-encoded checks, the price will be the same. REDESIGN YOUR CHECKS AND DEPOSIT TICKETS A C T U A L SIZ E NUMBER NUMBER AMOUNT OF CHECK Technical inform ation for redesigning checks and deposit tick ets m ay be obtained from the B ank M anagem ent Com m ission of the A m erican Bankers Association, 12 East 36th Street, N ew York 16, N. Y. A C T U A L SIZ E ■.............. 1 D E P O S I T T I C K E T \ i CHECKS LIST SINGLY H . G . W IN D E R 7115 REITE A V E . DES M O IN E S , IO W A 1 0 6 5 BESURE EACH ITEMIS ENDORSED DATE 19 Checks and other items are received for deposit subject to the terms and conditions of this bank’s collection agreement. D E P O S IT E D IN n a t i o n a l CASH TOTAL b a n k l/v lR 'Iit v an d T ru s t C o m p a n y DES M O I N E S , I O W A i:0 7 i 3 » ' 0 0 i 7 i : E 1 3 q '" E ,E fla 3 ii ■ In redesigning conventional deposit tickets, lea v e a % -inch border down the length of the left margin. For w allet and folding sty les of personal check books, printers can include a horizontal type deposit ticket as illustrated. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 3 -1 7 713 THE CENTRAL NATIONAL AUTOMATION CENTER A complete study by Central National over the past five years of all available bank automation equipment has produced what we believe to be the ideal transition to electronics. The Central National system extends from the original imprinting of checks through electronic sorting, then creation of a punched paper tape by a computer, and ends with the posting of accounts on fully automated Post-Tronic bookkeeping ma chines. Outgoing cash letters to correspondents will be sorted and listed automatically. D e s i g n e d for P e o p l e The automation system at Central National was designed for our customers and our personnel. The automated system is not a single unit to which accounting practices and procedures must be Encodes transit routing symbols and account code numbers on unencoded items received by the bank. QUALIFICATION p r i n t e r . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis changed to conform, but is composed of individual machine units linked together into a complete systems network. C o m p u t e r C on trol The full capabilities of electronic sorting are realized when the sorter is under control of a com puter. Provision for the essential hard-copy rec ords and individual printing lists for audit, plus punched paper tape for input to the automated bookkeeping machines are exclusive advantages provided by the Central National system. The Central National computer operates from written instructions called a “program.” A pro gram may be changed or altered by additional in structions, thus providing considerable flexibility to the system. Imprints dollar amounts on checks and deposit tickets. This machine may be linked with a proof machine or an adding machine. AMOUNT im p r in t e r . AUTOMATION FOR CORRESPONDENTS Under the Central National Plan, the benefits of automation will be offered to correspondent banks without making it neces sary for the individual bank to invest in a computer or elec tronic sorter. 1. When the number of items encoded with the customer’s account number warrants, Central National will sort into numerical sequence all checks going out in the daily cash letter to that bank. 2. Correspondent banks may deliver all encoded checks and deposit tickets to Central National after the close of business each day. The CNB Automation Center will: a. Sort entries into proper sequence. b. Create punched paper tape for automatic posting in your own bank. c. Prepare a printed list of all entries in numerical order. 3. In the event a correspondent prefers to retain original deposit tickets, the CNB service will apply only to en coded checks. However, the correspondent may elect to encode sub stitute documents for the original deposit tickets. On the documents, only the account number and amount of the deposit need appear. The sorted entries with the punched paper tape along with the sequenced list will be returned to the correspondent the fol lowing morning. The paper tape will then be used to automati cally post the accounts on your own premises. THE TIMETABLE—The electronic sorter and encoding equip ment will be delivered in late summer, 1961—the computer, Fall of 1961. This equipment will first be used in our Proof-Transit Department. In early 1962, fully automated bookkeeping machines will be installed in our bookkeeping department. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis h ig h - sp e e d printer. A high-speed printer in the Central National system makes printed lisis of all items that go through the electronic system. This listing of account numbers or ABA routing symbols as well as amounts, is a complete audit trail that can be used for reconcilement with the original list prepared by the proof department of a correspondent bank. Any item can be readily located by account number, by amount, by sorter pocket destination and by proof identification. This is the electronic control established as items pass through the system. »••• •••••••• •• 4 • • •• • ••• •• ••• ••• •• A high-speed paper tape punch is housed in the cabinet of the computer. Under control of the computer, this unit punches complete, itemized lists of checks and deposits and lists totals together with an item count. Items are listed in sequence and account numbers and transaction codes are verified electronically. The punched paper tape, 100% reliable because of electronic checking circuits, becomes the input medium for the automated bookkeeping machine. Information on tape always remains in sequence. P U N C H E D PAPER t a p e . A U T O M A T E D P O S T - Full automation of the Post-Tronic bookkeep ing machine was made prac tical by the development of the automatic feeder and the electronic tape reader. When coupled to the Post-Tronic machine, these units provide fully automatic, electroni ca lly con trolled , o n e-ru n posting of checking accounts. This practical and econom ical posting procedure pro duces conventional records familiar to the depositors, the bank personnel, audi tors, and the bank examiner. TRONIC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE ELEC TR O N IC Specifically engineered to £t all re quirements for mech anized check handling as ou tlin ed by the American Bankers As sociation, Operation of the sorter is controlled by computer program. s o r t e r THE . e l e c t r o n i c . The master control in the Central National Au tomation Center. Op erations of the system are directed by in structions stored in the electronic memory. c o m p u t e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Again Central National leads the banking field with another c'first” for its customers. You are invited to further explore this new time- and money-saving service with one of our officers at your convenience. MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • FEDERAL RESERVE SYSTEM 61 R e v ise C orresp on d en t R a n k A r e a s City National Bank and Trust T HE Company, Kansas City, has an nounced a revision of the territories covered by the officers in the corre spondent banks division. Executive Vice President F. Phillips Giltner, in charge of the division, will J. M. JACKSON maintain direct supervision of all areas east of the Missouri-Kansas state line. W orking under Mr. Giltner are: W il liam Miller (northern Missouri); M. D. Ellis (southern Missouri, Arkansas, Louisiana, Mississippi and Alabama); Sam Blasco (Texas, excluding the Pan handle), and George Sherman (south eastern U. S.). Senior Vice President Dale Ains worth will be in charge of the western division which includes all territory west of the Missouri-Kansas line. W orking under Mr. Ainsworth are: John Kramer (southern Kansas); Roy Thompson (northern Kansas and all of Colorado); James Jackson (Iowa, Nebraska, Montana and Utah); Clair Schroeder (Minnesota, Wisconsin and North and South Dakota); Richard Pendleton (Oklahoma and Texas Pan handle); Clark McCorkle (all western states not covered by others in divi sion), and Galen Morley (Kansas and Texas in conjunction with cattle busi ness only). C. H. SCHROEDER C O N V E N T IO N S September 11-12, Nebraska Bankers Association Ag Credit Conference (details on Nebraska page). September 11-13, NAB AC 37th annual national convention. Conrad Hil ton Hotel, Chicago. September 11-13, Iowa Bankers Asso ciation Installment Lending Con ference, Kirkwood Hotel, Des Moines. October 9-12, National Association of Bank Women, 39th Annual, Sheraton Hotel, Rochester, N. Y. October 9-12, National Association of Supervisors of State Banks, The Dunes Hotel, Las Vegas, Nev. October 11-12, Nebraska Bankers Association, Annual, SheratonFontanelle Hotel, Omaha. October 15-18, American Bankers Association, Annual Convention, San Francisco. October 29-November 1, Iowa Bank ers Association, Annual, Hotel Fort Des Moines, Des Moines. November 9-10, ABA Mid-Continent Trust Conference, Baker Hotel, Dallas, Tex. November 12-15, Robert Morris Asso ciates, Diplomat Hotel and Coun try Club, Hollywood, Fla. IF YOU CAN’T SAY “YES" SAY TALCOTT ... and keep your customer’s good will There are times when customers come to you with financing needs exceeding their line of bank credit. That’s the time to talk with Talcott! We can work out commercial financing or factoring plans which provide the capital your customers need and help you retain their good will . . . and you can participate in the financing if you wish. Your customers continue to bank with you . . . and return to you for full borrowing requirements when their credit is again acceptable. James Talcott, Inc. r November 13-14, 10th National Agri cultural Credit Conference, The Statler-Hilton, Dallas, Texas. November 26-30, FPRA 46th Annual, Americana Hotel, Bar Harbour, Fla. M ID W EST REG IO N CHICAGO 2 09 South LaSalle S tre e t DETROIT MINNEAPO LIS New York • Fina ncia l 6 -1 4 4 4 W Oodward 2 -4 56 3 F irst Acceptance Division N o rth w e s te rn Bank Building O t h e r o ff ic e s o r s u b s i d i a r ie s : https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F irs t N ational B uilding Los Angeles • San FEderal 9-7 71 1 Francisco • Boston A tla n ta Northwestern Banker, September, 1961 62 H alf-B illion Form s The half-billionth Post-Tronic bank ledger form, part of an order for the First Edina National Bank, Minneap olis, Minn., was recently produced by The National Cash Register Company, Dayton, Ohio. The unique form is a combination depositor’s statement and bank record with a built-in magnetic memory. According to NCR, the Minneapolis bank and 1,380 other banks throughout the nation use this type of form with the company’s Post-Tronic bank book keeping machine. NCR states that approximately 100,- HALF - BILLIONTH Post - Tronic bank ledger form is inspected by Charles S. Allyn, supervisor, NCR supply division, and Miss Beverly Hawn. 000,000 forms have been produced in the past six months. INVESTMENTS . . . (Continued from page 34) a restrictive credit policy, but because of increased lending by the com mer cial banks to business and industry. By reason of the fractional reserves set-up of the banking system, a pool of from $400,000,000 to $500,000,000 of excess reserves could form the basis of an expansion of $2,000,000,000 or more in business loans, that is, a five fold expansion. Whether the needs of business for bank credit will make a call on such Attention Bankers: WESTERN AND SOUTHERN W ill Help You Promote Your CREDIT LIFE PROGRAM NOW IN O U R 51st Y E A R AGENT _ _ _ _ _ _ I N Q U IR IE S IN VIT ED Site* a Mutual Jlurr auiiAutumubilp * //..</ I'i /><< >njui n if \ Established 1900 HOME OFFICE CEDAR RAPIDS, IOW A J. E. Wilson, President J. M. Winchell, Secretary For Complete Information C ontact Our CREDIT INSURANCE DEPARTMENT P. O. Box 1119 Cincinnati 1, Ohio THE WESTERN AND SOUTHERN LIFE INSURANCE COMPANY A M utual Company W illiam C. SafFord, President Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis an enlarged aggregate of loans remains to be seen. W ith the seasonal fall ex pansion of business activity nearly at hand, a substantial rise of bank lend ing is to be reasonably expected. In any event, no shrinkage in the pool of bank lending money is likely to be enforced by Federal Reserve moves of the credit restraint kind unless big changes take place on the production, employment and p r ic e fronts. Like political Washington, the central bank is sensitive to the thought of interest rates rising sharp ly while the econom y is still check ered with large pockets of unemploy ment and unused industrial plant capacity. Only if unemployment be comes negligible and if prices start to rise unwarrantably should Federal Reserve credit policy be expected to shift to restraint. At the moment, Federal Reserves are skeptical as to the extent that certion expansionary forces predicted for the economy— the proposed $3,500,000,000 increase in the defense budget, for instance—will spend the full utiliza tion of the econom y’s resources and send prices spiraling upwards. E n la r g e d B u s in e s s L o a n s In central bank circles, too, it is sensed that the lessened liquidity of the banking system may require the deposit institutions to look to the Fed eral Reserve for more assistance in enlarging business loans over the com ing period of economic expansion than in past booms. The deposit banks are amply pro vided with “ secondary reserves” in the form of short-term Treasury obliga tions, but their holdings of interme diate and long-term issues are mate rially less than in past periods of re covery from economic recession. Therefore, the banks this time are not as able to augment loan funds by selling investments out of portfolio as they were in the past. Any large liquidation of short-term investments, moreover, would run the risk of bring ing deterioration to prudent risk-asset ratios. Further, large blocks of short term investments are held by the banks in pledge against certain de posits. The Federal Reserve System, then, being aware of the lessened turning around room of the commercial banks in the expansionary period that lies ahead, will probably be liberal in mak ing open-market purchases of govern ment securities with a view to main taining a pool of excess bank lending power. That is so long as the red lights of inflationary expansion—ris ing prices and speculative swelling of investories — do not start flashing.— End. 63 “SEE YOU TOMORROW" “SEE YOU TONIGHT” Men who value th e ir tim e —on the job and at leisure—fly Ozark . . . the airline th a t m easures the m idw est in m inutes. So check yo u r travel p la n s . . . check Ozark’s fast, fre q u e n t service between 53 cities in nine states, Two m inutes spent now on a call to Ozark or your travel agent can save you many valuable hours. * * * A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I R L I N E S N o rth w e s te rn B a n k e r, S e p t e m b e r , 1961 64 Correspondent bankers John Ordos, and Doug Johnson are equipped to dig into another tough banking problem. up answers for correspondent banks is routine for the men from Midland. Technical problems, equip ment problems, operational problems— Midland’s correspondent bankers offer you the latest information, down-to-earth advice. Have John or Doug show how Midland proves friendship with special service. _ T H E B A N K W ITH T H E B IG W ELC O M E lidland N ational B an k FEderal 2-0511 • Second Ave. So. and Fourth St. • Minneapolis 40, Minn. * Member FDIC Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 65 with a stand-up check desk inside the vestibule. A 16-car parking lot will be located at the rear and on the west side of the building. Minnesota NEWS P. R. KENEFICK K. A. WALES President Secretary Mankato Minneapolis Plans Set fo r D istrict M eetin gs LANS have been completed for the P annual district meetings of the Minnesota Bankers Association, Sep tember 11-19. As in the past, registration will be gin at 3:30 p.m., business meetings will run from 4:15 to 5:45, followed by a social hour at 6 with dinner at 7 p.m. Registration fee will not exceed $6, with the possible exception of the joint meetings of Districts 3, 4 and 5 in Minneapolis. Local chairmen of the meetings are listed below: District 1, Kahler Hotel, Rochester, Monday, September 11, O. U. Habberstad. District 2, Kato Ballroom, Mankato, Tuesday, September 12, Harry M. Grant. Districts 3, 4 and 5, Hotel Radisson, Minneapolis, Wednesday, September 13, Otto H. Preus. District f>, Club LaGuyal, Brainerd, Thursday, September 14, G. R. Tuttle. District 8, Rainy Lake Lodge, Inter national Falls, Saturday, September 16, S. D. Sheldon. District 7, Country Club, Monte video, Monday, September 13, O. B. Rekow. District 9, F-M Hotel, Moorhead, Tuesday, September 19, P. J. Canton. Opens W alk-U p The Farmers National Bank in Wa seca, Minn., recently opened a walk-up teller window. Parking meters along the curb have been removed and three free parking stalls have been created for customers using the facility. Elected President Mrs. Jeanette Mattimore has been elected president of the Farmers Ter minal State Bank, Newport, Minn., fill ing the vacancy created by the death of T. H. Mattimore recently. E. Milton Klohn was elected executive vice pres ident; Raymond E. Schlemmer was named cashier, and William H. Ringold, Sr., is auditor. Mr. Schlemmer also was elected to the board. Roy E. Bebermeyer con https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tinues as vice president, and Elaine D. Schlemmer continues as assistant cashier. Mrs. Mattimore had been assistant cashier for 19 years and cashier for the past eight. Plans New Building The Forsythe State Bank, Forsythe, Minn., has awarded contracts for con struction of its new home at Main and Seventh. Work started immediately and completion is scheduled for about the first of the year. The one-story brick and steel struc ture will measure 80 feet wide by 50 feet deep and will face north on Main Street. Features of the new building include year around air conditioning, all new fixtures and nearly double floor space. A 24-hour depository will be located adjacent to the entrance, M IN N E SO T A CA LEN D A R September 7, St. Paul Chapter, AIB, consul dinner at Golden Steer Motel. September 7, Arrowhead Safe Deposit Association first meeting, Vir ginia, Minn. September 11, District 1, Minnesota Bankers Association, Rochester. September 12, District 2, MBA, Man kato. September 13, Districts 3, 4, and 5, MBA, Minneapolis. September 14, District 6, MBA, Brain erd. September 14, St. Paul Chapter, AIB, fall party, University Club. September 16, District 8, MBA, Inter national Falls. September 18, District 9, MBA, Moor head. October 11-12, MBA Junior Bank Of ficer & Staff Conference, St. Paul Hotel, St. Paul. November 20, MBA Agricultural Credit Conference, Minneapolis. 1962 January 18, MBA Mid-Winter Confer ence, Radisson Hotel, Minne apolis. June 5-6, MBA 72nd Annual Conven tion, Leamington Hotel, Minne apolis. Joins W in d o m Bank Don W. Doll, well-known as an ag ricultural leader in southern Minne sota, has been named agricultural rep resentative for the First National Bank of Windom and assumed his new duties August 15. Mr. Doll taught vocational agricul ture for 10 years, one year at Foley, Minn., and nine years at Jackson, also serving as veterans’ agricultural su pervisor. He is a former sales repre sentative for King Merritt & Compa ny and fieldman for the Growers Cat tle Credit Corporation. Joins W in on a Bank A. E. Stoa, president, First National Bank, Winona, Minn., has announced the election of Loyel Hoseck as as sistant vice president and agricultural re p re se n ta tiv e . He will work in the area of farm loan s and other farm activities as well as assisting in the trust de p a rtm en t w i t h t h e management of farm p r o p e r ties. Mr. Hoseck has been county agent in Dodge County since 1954. Before that he was an agricultural instructor at Adrian, Minn., for four years. New at Proctor Donald M. Hobbs has joined the First National Bank of Proctor as in surance consultant and appraiser. He has been in the insurance field since 1950 and will handle all lines of insur ance for the bank. Madison Change Chester Stageberg has been named assistant cashier at the Klein National Bank in Madison, Minn. He formerly was bookkeeper at the Madison Farm ers Mill & Elevator, according to Leo A. Nikolai, cashier. Plans M ural The Grand Marais State Bank, Grand Marais, Minn., has commis sioned Birney Quick to paint a 7 by 16 foot mural on the bank’s east lobby wall. The theme of the mural will deal with commerce as related to the history of Cook County, according to Richard I. Anderson, president. N o rthw estern B a n k e r, S e p t e m b e r , 1961 66 T w i n city X e w s mmE äS assÄ A .. r . p e t e r s o n has been elected president of the Cam den Northwestern State Bank, suc ceeding Reuben Nelson, who has re tired. Mr. Peterson started his banking ca reer in 1928 with the Northwestern National Bank. He moved to the Third Northwestern and was elected assist- L aw rence L. R. P E T E R S O N E. H. B Y E R ant cashier in 1948. In 1954, he was elected vice president and member of the board at Camden Northwestern. Also announced at Camden North western was the election of Edwin H. Byer as assistant cashier. He joined the bank in 1956 to become supervisor of the bank’s operations and personnel departments. He began his banking career at Northwestern National in Minneapolis in 1949. He is a native of Eureka, S. D. * * * ffm . R. Chapman, president, Mid land National Bank, recently served as a member of the faculty of The School of Banking and the University of Wis consin in Madison. He lectured on ac counts receivable financing and inven tory financing. * * * The St. Paul chapter of the Ameri can Institute of Banking will be host to the annual 10th district A.I.B. con ference during the summer of 1962, George Povey of Cherokee State Bank, chapter president, announced recently. District 10 covers an eight-state area and has a membership of 15,000, of whom about half attended A.I.B. edu cational courses during the past year. * * * Closing arguments on a proposal to establish a new state bank at Rice Street and University Avenue in St. Paul were heard recently. The pro posed bank would be known as Sum mit State Bank. * * * Construction is underway on the new Brooklyn Center State Bank in the Brookdale Shopping Center area in north suburban Minneapolis, The bank will cost an estimated $135,000 and will have a capital structure of $400,000. Dallas G. Lawrence is presi dent and Edward J. Hamernick, execu tive vice president. The “free coffee” sign was out re cently on the plaza of the First Na tional Bank of Minneapolis. The bank was host to its friends as umbrella ta bles and chairs turned the expanse into a sidewalk cafe from 9 a.m. to 3 p.m. daily. * * * The Federal Reserve Board has blocked a proposal by Northwest Bancorporation to establish a new bank in Roseville in north suburban St. Paul. The board divided three-three in its vote. Banco needed affirmative board INSIIRANEE AT EDST! Bankers are Select Risks and we have special coverage designed for Bank M en and W om en. Write for Application and Information. Minnesota Commercial Men's Association Digitized N o r t hfor w eFRASER s t e r n B a n k e r , S e p t e m b e r , 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * * * Two Minneapolis bankers have been named to an eight-member citizens’ committee to study expansion of the Minneapolis m u n icip a l auditorium. They are Lyman Wakefield, vice presi dent, First National Bank, and L. E. Gilbert, vice president, Northwestern National Bank. * * * ACCIDENT, SICKNESS and HOSPITAL 2550 Pillsbury Ave. S. action before it could establish the bank. Another group previously had been granted permission to establish a state bank in Roseville on condition that the Banco group failed to obtain Fed eral approval. Applicants for the state bank are I). K. Tyler of the State Bank of Phillips, Wis.; Beldin H. Loftsgaarden, attorney, and Arinin P. Buetow, treasurer of Waldorf Paper Products Company of St. Paul. Minneapolis 4, Minnesota * * * Directors of the Federal Reserve Bank of Minneapolis held their August meeting at the bank’s branch office in Helena. The directors and the board members of the Helena branch also made a three-day in s p e c tio n trip through western Montana. % * * First Bank Stock Corporation re ported consolidated net operating earn ings of $7,430,609, or $2.14 per share, during the first half of 1961, down 5 per cent from a similar period last year when the figure was $7,854,099, or $2.26 per share. * % * Deposits in First Bank Stock’s 87 affiliated banks totaled $1,608,539,578, June 30, a gain of 5 per cent from the same date last year. Directors de clared a dividend of 47% cents per share, payable September 11 to stock holders of record August 18. Minnesota News Northwest Bancorporation reported consolidated net operating earnings of $7,752,756 for the first six months of 1961, a gain of 6.3 per cent over a sim ilar period last year. Earnings were equal to $1.42 per share, compared with $1.34 per share for the first half of 1960. Deposits in the corporation’s affili ated banks totaled $1,791,421,000, a gain of 6.5 per cent over a similar period last year. Directors declared a preferred stock dividend of $1.12% per share and a common stock dividend of 30 cents per share, payable September 1 to stockholders of record August 4. R em odeling Com plete The Fairmont National Bank, Fair mont, Minn., has completed remodel ing work begun several months ago. A walk-up window and a new direc tors’ room have been added. The di rectors’ room will be available to small groups for meetings. The Fairmont National Insurance Agency has been moved to a new area on the north side of the building. Hugo Open H ouse A total of 893 persons registered at the grand opening of the new First State Bank building at Hugo, Minn., recently. Gifts were received by all who attended and drawings were held for door prizes. St. James Prom otions Ron Reinhart, assistant cashier for over three years, has been promoted to cashier, and Mrs. Hans Kruger, a vet eran of more than 40 years of banking experience, has been promoted from teller to assistant cashier. Mr. Reinhart will continue to super vise the insurance department until a replacement can be trained. ings Bond for making his lucky de posit. C. T. Holberg, president, made the presentation. 35 th Anniversary F. W. Penrod marked his 35th anni versary with the Citizens State Bank of Fulda, Minn., recently. He is vice president. Mr. Penrod joined the bank on August 1, 1926, as bookkeeper. Credit Group Elects Tom Bartholomay, assistant cashier and secretary, Merchants National Bank & Trust Company, Fargo, N. D., was elected president of the Upper Midwest Agricultural Credit Council at a recent two-day conference in Aus tin, Minn. He succeeds Larry Lamberty, assistant vice president, North western National Bank, Rochester, Minn. Other new officers are Vern Olson, Farmers State Bank, Spring Green, Wis., first vice president, and Gene Coombs, assistant cashier, Security Trust and Savings Bank, Billings, Mont., second vice president. The next annual conference will be held in Rapid City, S. D., with Roland Fineran, assistant cashier, Pierre Na tional Bank, Pierre, S. D., as conven tion chairman. Club Election Folke Young, assistant secretary, was elected president of the 25-Year Club of the Northern City National Bank, Duluth, recently. Carroll Fisher, trust officer, was elected advisory chairman, having served as president during the past year. 10 ,0 0 0 t h Depositor A St. Louis Park boy, John Rick, 15, became the 10,000th depositor when he opened a savings account at the Citi zens State Bank in St. Louis Park re cently. He received a $100 U. S. Sav- Pipestone Celebration Open house was held recently at the First National Bank of Pipestone, Minn., marking completion of an ex tensive remodeling program. Grilled tellers’ cages have been replaced with open counter space. A marble divid ing wall has been replaced to increase open space. A meeting room has been built in the basement and all new fixtures have been installed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Carl E. Nelson Carl E. Nelson, retired vice presi dent and cashier of the Farmers and Merchants State Bank, Stillwater, Minn., died recently at a Minneapolis hospital after a brief illness. Do yo u r h a v e questions about TAXATION... CANADA? " Y o u r G u i d e T o B u s i n e s s in C a n a d a , ” published by Canada’s First Bank, includes a survey in laymen’s language o f the major Canadian taxes affecting your clients’ business or personal in terests in Canada. These include Federal and Provincial taxes, and special subsidiaries, invest ment companies and oil, natural gas and minerals. Your Canadian-minded clients will find it "must” reading. To obtain your copy, write on your letterhead to our nearest U. S. office, or to the Business Devel opment Department, Head Office. Joins LeSueur Bank Arnold Osmundson has joined the staff of the Valley State Bank, Le Sueur, Minn. Mr. Osmundson is a graduate of the University of Minne sota where he played varsity football. Director Nam ed Donald B. Bahls has been elected a director of the Hastings National Bank, Hastings, Minn., succeeding his father, Ben Bahls, who resigned as an active member of the board. Ben Bahls has been elected an honorary board member. Donald Bahls is a life-long resident of the Hastings area and is general manager of a motor and implement firm there. 67 Ba n k (p a n a d a of M b ontreal (? o a d t-ta - BRAN CHES IN ALL TEN P RO V IN C ES D istrict H e a d q u a r t e r s : Halifax, Toronto, Winnipeg, Calgary, Vancouver N EW Y O R K : Two W all St. • SAN FR A N C ISC O : 333 C alifo rn io St. C H IC A G O : Special R epresentative's Office, 141 W est Jackson Blvd. 'Ztead Ofátce: 'Wfautfriexit £50 BRANCHES IN CANADA, U .S ., GREAT BRITAIN AND EUROPE RESOURCES EXCEED $ 3 ,5 2 5 ,0 0 0 ,0 0 0 N o rth w e s te rn B a n k e r, S e p t e m b e r , 1961 68 Minnesota News Convention Com m ittees Nam ed HE Minnesota Bankers Association T general convention committee re cently made appointments for eight mittee are George S. Henry, vice presi dent, First National Bank; Otto H. Preus, vice president, Marquette Na committees to handle arrangements tional Bank, and D. E. Crouley, senior for the 72nd annual MBA Convention vice president, Northwestern National Bank, all of Minneapolis. next June. E. W. Engstrom, general chairman Minneapolis bankers named to com and vice president, Midland National mittee posts are: Bank, Minneapolis, announced the ap Banquet Committee — Kenneth T. pointments of committee heads and Martin, vice president, First National said the 1962 convention will be held Bank, chairman; Douglas M. Johnson, June 5-6 at the Hotel Leamington in assistant vice president, Midland Na Minneapolis. tional Bank, vice chairman. Other members of the general com Golf Committee—R. W. Crouley, vice president, Marquette National Bank, chairman; L. C. Simensen, Fidelity Bank & Trust Company, vice chair man. Hotel and Utility Committee — C. Paul Lindholm, assistant vice presi- E. W . E N G S T R O M O. H. P R E U S dent, Northwestern National Bank, chairman; S. R. Omlie, assistant vice president, First National Bank, vice chairman. Ladies’ Committee—Mrs. Virgille L. Peeke, assistant cashier, Northwestern National Bank, chairman; Miss Mar garet Roland, Midland National Bank, vice chairman. First Night Party — Raymond H. Johnson, assistant cashier, First Na tional Bank, chairman; Laurence M. Broom, vice president, Northwestern National Bank, vice chairman. Publicity Committee—Harry C. Ben son, Jr., vice president, Midland Na tional Bank, chairman; Signor R. Sil verness, assistant vice president, Mar quette National Bank, vice chairman. Speakers’ Reception Committee — Leonard P. Gisvold, vice president, Northwestern National Bank, chair man; Richard O. Weyrauch, assistant vice president, First National Bank, vice chairman. Registration Committee—Carl Bergquist, Federal Reserve Bank, chair man. The Live Stock National Bank SIOUX CITY, IO W A T H E O N L Y B A N K IN T H E Y A R D S MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION N o rth w e s te rn B anker, S epte m be r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 New President A. D. Buss, formerly vice president and cashier, has been elected presi dent of the Security State Bank, Clare mont, filling the vacancy left by the death of George Vagstad, who had been president for many years. Dr. E. H. Hartung was named vice president and James McMartin, secre tary and new director. 69 voted to co-sponsor the Outstanding Young Farmer Program conducted by the South Dakota Junior Chamber of Commerce and the United States Jun ior Chamber. The OYF program will be reviewed at the group meeting business sessions September 25-29. South Dakota N E W S C. C. LIND A. S. GULLICKSON President Secretary Aberdeen Huron Joins M obridge Bank John P. Bzoski of Wyola, Mont., was elected executive vice president of the Citizens Bank of Mobridge, S. D., at a recent meeting of the directors. He has assum ed a c tiv e c h a r g e of the ban k sin ce the resignation of Art J. Peterson, who has been named e x e c u t i v e v ic e president of the B a n k of Ne w Richmond, Wis. A t the s a m e time, G. L. Hill j . P. B Z O S K I was elected presi dent and Mr. Bzoski was named to the board to replace Mr. Peterson. Mr. Bzoski formerly was cashier of the Little Horn State Bank of Wyola and was associated with that bank for 10 years. can State, Yankton, and Carl Burgess, director, First National Bank of the Black Hills, Rapid City. Serving on local centennial com mittees are Carl Voigt, chairman, Northwest Security National, Sioux Falls; Carleton Gorder, vice president, First National Bank of the Black Hills, Deadwood; Fred Roesch, vice presi dent, First National, Aberdeen; Carl Bangert, vice president, American Na tional, Rapid City; Pat Dixon, assistant cashier, First National of the Black Hills, Rapid City, and R. J. Fineran, farm service, Pierre National, Pierre. Carl J. Poshusta Carl J. Poshusta, president, Under wood State Bank, New Underwood, S. D., died suddenly during a visit to Rapid City. He was 68 years old. Mr. Poshusta started with the Un derwood State Bank in 1918 as a clerk. Prior to that time he worked in banks at Calmar, Iowa, and in North Da kota. Co-Sponsor Farm er Award Program The Executive Co u nc il of the South Dakota Bankers Association has Joins SD BA Staff Mrs. Elizabeth G. Snyder has been hired as office secretary at the South Dakota Bankers Association headquar ters in Huron. She succeeds Mrs. Mar jorie Wiese. Mrs. Wiese and her fam ily are moving to Watertown where Mr. Wiese is employed. New Spearfish Branch The new Spearfish Branch of the Bank of Belle Fourche opened for business August 12. H. M. Clarkson, assistant vice presi dent, Bank of Belle Fourche, has been named manager. Arnold E. Domke, Parkston, is assistant manager, and Mrs. Kenneth Budmayr is teller. Mr. Domke has been employed by the Farmers State Bank of Parkston for the past two years. W illiam M. Duncan William M. Duncan, Sr., 88, presi dent, Farmers State Bank, Flandreau, died recently after an illness of about six months. On Sioux Falls Board Directors of the Northwest Security National Bank of Sioux Falls have elected Jack O. Harrington, vice presi dent and Sioux Falls manager of John Morrell & Company, as a member of the board. C. A. Lovre, president, also an nounced that John F. Vander Ploeg, assistant vice president and sales man ager of John Morrell & Company, has been named to the advisory board of the N o r t h w e s t Bank’s Stockyards branch. Huron Bank Arthur R. Olson Arthur R. Olson, 67, president, First National Bank, Beresford, S. D., died last month at his summer cottage at Lake Okoboji, Iowa. He had been af filiated with the First National for 43 years. He also was president of the First Federal Savings and Loan, vice president of the State Bank of Hudson, and vice president of the DeLay First National Bank at Norfolk, Neb. P rom ote Centennial Several South Dakota bankers are serving on committees to promote ac tivities and celebrations in observance of the state’s centennial. Bankers on the Dakota Territory Centennial Commission are Francys Naslund, president, Farmers State, Faith; J. M. Lloyd, president, Ameri https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis REMODELED INTERIOR of Huron branch of Northwest Security National Bank. FULL schedule of dinners and A open house celebrations marked completion of the $225,000 remodeling of the Huron Office, Northwest Secu rity National Bank of Sioux Falls, re cently. More than 7,000 visitors Features of the remodeling included new carpeting, a walk-up teller win- dow, after-hour depository, employees’ lounge and coffee room, conference room, additional safety deposit boxes, enlargement of all departments, back ground music, air conditioning, reloca tion of the installment loan depart ment and a new electric time and temperature sign outside the building. N o rth w e s te rn B a n k e r, S e p t e m b e r , 1961 70 South Dakota News New Ag Representative Ken Johnson, vice president and manager, Citizens Bank, Colome, S. D., has a n n o u n c e d t h e appointment of E u g e n e A. Erickson as agri c u l t ur a l r e p r esentative for the bank. Mr. E r i c k s o n owned and oper ated a farm in D e u e l County f r o m 1952 until 1960. He is a grad uate of South Dakota State College and taught veterans on-the-farm train ing courses from 1951 to 1957 at Clear Lake. Heads Iroquois Bank Robert W. Habberstad has been named president of the Farmers and Merchants State Bank at Iroquois, S. D. He succeeds the late L. A. Hollen beck. who died last June after a heart attack. Mr. Habberstad has been with the bank for 14 years, starting as cashier and later moving up to vice president. He has been in the banking business since 1939, coming to Iroquois from the Stock Yards National Bank of South St. Paul. Mrs. Marian G. Hollenbeck, widow of the former president, has been named vice president, and Duncan D. Flann, assistant cashier, has been named cashier. Heads Lem m on Bank John V. O’Donnell, whose banking experience dates back to 1938, has been elected president of the First National Bank, Lemmon, S. D., succeeding A. O. Rolien, who re tired August 1. James Howard, assistant cashi er and man ag er of the Timepay De partment, w a s e l ec te d assistant v i c e president; Eugene C. Svihovec, a s s i s t a n t j. v . o ’ d o n n e l l c a s h i e r , was named cashier, and Dale Roberts, assistant manager of Timepay, was made assistant cash ier and Timepay manager. Mr. O’Donnell was named assistant cashier of the Lemmon bank in 1948 and a year later was elected cashier. He has been vice president and cash ier since 1953. H udson Open House Nearly 500 persons attended an open house at the recently remodeled and expanded State Bank of Pludson, S. D., recently. The interior has been completely re decorated and a new addition houses offices of T. E. Quarnstrom, cashier, and the bookkeeping department. The 18 by 48 foot addition was constructed on the west side of the original build ing. SOUTH D A K O T A CA LEN D A R September 25, SDBA Group Meeting, Sheraton-Johnson Hotel, Rapid City. September 26, SDBA Group Meeting, Community Room, Mobridge Branch, First National Bank of Aberdeen. September 27, SDBA Group Meeting, Flamingo Club, Watertown. September 28, SDBA Group Meeting, Hotel Lawler and Mitchell Coun try Club, Mitchell. September 29, SDBA Group Meeting, Sheraton-Cataract Hotel, Sioux Falls. November 8, SDBA Bank Manage ment Conference, Marvin Rugh iti Hotel, Huron. ¡¡¡¡Pif N o rth w e s te rn ^ Banker, S ep te m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1962 May 17-19, SDBA 71st Annual Con vention, Sioux Falls. 1961 71 rington, N. D., has been completed and operations were moved to the new building recently. The 70 by 70 foot brick and stone structure features five tellers’ win dows, a spacious bookkeeping room, a large lobby and officers’ area which is entirely carpeted, a drive-in window and all new furnishings. A concrete parking lot behind the bank accommodates 14 cars. M irili Ila kola NEWS GARy L. LERBERG BILL DANER President Secretary Parshall Bismarck W . S. Davidson W. S. Davidson, Sr., long-time Williston banker and prominent in North Dakota politics, died recently. He was 80 years old. He was chairman of the board of the American State Bank at Williston at the time of his death. Mr. Davison started his banking ca reer in Williston in 1906. 5 5 th Anniversary T. A. Tollefson, vice president, First National Bank, Dickinson, N. D., re c e n t l y observed his 55th anniver sary w i t h the F i rst National. Mr. Tollefson re cently celebrated his 80th birthday. He j o i n e d the bank in 1906, has been an officer in the bank since 1908 and a direc tor since 1910. The First National recently cele brated its 75th anniversary. It was founded on July 31, 1886. Opens Flasher Office The Grant County State Bank, Carson, N. D., has opened a branch office at Flasher. Gideon Eckman, who has worked in the bank at Carson for sev eral years, is manager of the new office. New at Valley City R. M. Hougen, president, American National Bank, Valley City, N. D., an nounced recently that William C. Parker has joined the bank staff as an agriculture representative. Mr. Parker, a graduate of North Da kota State University, taught voca tional agriculture at Fessenden High School since graduating. He also taught a young farmers’ class in farm accounting and an adult farm manage ment class. Opens A ir Base Facility The Air Base facility of the First National Bank of Grand Forks was opened recently. Herbert Stennes is manager of the facility and Mrs. Merle Schmidtke is teller. Moorhead Prom otion Kenneth Benson, who joined the American State Bank in Moorhead, N. D., last February, has been pro moted to assistant cashier. He was assistant cashier at the Citizens State Bank, Rugby, for four years before coming to Moorhead. Two A ces Sell Mandan Stock Vernon P. Weyrich, executive vice president, has sold his stock in the Mandan Security State Bank, Mandan, N. D., to Ben Meier, North Dakota sec retary of state. Mr. Weyrich has re signed as executive vice president. His plans for the future have not been an nounced. R em odeling Complete Remodeling of the Peoples and Enderlin State Bank, Enderlin, N. D., was completed early last month. A new electric sign has been installed, a night depository was added and the exterior of the building has been refinished. Carrington Construction Construction of the new Foster County State Bank building in Car .Vere ROBERT WALRATH, President, First Citizens National Bank of Watertown, S.D., recently scored his second hole-in-one within ten days at the Watertown Country Club. His first ace was on the 205 yard 17th with a four wood. His second came on the 179 yard seventh where Mr. Walrath used a, five iron. The young man at right is Bob, Jr., who was playing with his father when the second hole-in-one was scored. Valley City NORTH DAKOTA C A LEN D A R October 2, Northeast Grand Forks. October 3, Southeast Fargo. October 4, Northwest Minot. October 5, Southwest Bismarck. Group, NDBA, Group, NDBA, Group, NDBA, Group, NDBA, RECENTLY COMPLETED is this new headquarters for the American National Bank of Valley City, N. D. Banking operations were moved to the new quarters in mid-July and a grand opening held later that month. It is the first bank in Valley City to provide drive-in facilities, reports Gerald L. Zinck, assistant cashier. N o rth w e s te rn https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B a n k e r, S e p t e m b e r , 1961 72 How to multiply your PR director . . . by 3000 Membership in F PR A puts the experience and training of 3,000 members specializing in financial Public Relations and Business Development, at the command o f your own PR Director. This “ clearing house o f ideas” is well established as a most valuable tool fo r public relations executives o f financial establishments. Services available to your PR D irector will include the Information Center with its portfolios of material covering more than 300 financial PR subjects, a school library with “ thesis-like” studies on more than 400 subjects available quickly on loan, the FPR A BU LLETIN crammed every month with examples o f good ideas, the film library, specific answers on problems, the nationally known School o f Financial Public Relations at Northwestern University, idea exchanges, workshop panels, and research projects. Move your top PR men into F PR A . . . now. Y ou’ll always be glad you did. i F IN A N C IA L PUBLIC RELATIONS ASSOCIATION Clearing House for PR Ideas 231 So. La Salle St., Chicago 4, Ilk, Tel: STate 2-5547 N o rth w e s te rn Banker, S e p te m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 73 Colorado-Wyoming News Alamosa, who now is vice president 1 0 0 Attend School More than 100 bankers attended the and cashier of the Trinidad Bank, and 11th annual Colorado School of Bank Walter E. Carsella, formerly vice pres ing at the University of Colorado, Au ident of the Alamosa bank and now gust 13 to 25, according to Joseph A. second vice president of the Trinidad Frascona, director. The school is co bank. Opal Gham and Margaret Eckhart sponsored by the U. of C. and the Col are remaining with the Trinidad bank orado Bankers Association. In addition to regular classes, three as assistant cashiers. seminars designed to expose bankers Boulder Increase to cultural areas besides banking were highlighted. The seminars were con The First National Bank in Boulder, ducted by Geoffrey M. Wilson, finan Colo., has increased its capital from cial attache at the British Embassy, $510,000 to $600,000 by a stock divi Washington, D. C.; Clifford Houston, dend. professor of education at U. of C., and Dr. Bernard T. Daniels, Denver sur Alam osa Prom otions geon. Three employees of the First Na B. Robert Gadberry, vice president tional Bank of Alamosa have been and trust officer, Fourth National promoted. Mrs. Ruth Myers, a bank Bank, Wichita, Kan., delivered the employee for the past seven years, and commencement address. Roger Couture, with the bank since 1919 as a teller, both have been pro Capital Increased moted to assistant cashiers. Don An Directors of the Denver U. S. Na derson, who has been with the bank tional Bank voted last month to in since last October, was named assist crease the bank’s capital structure by ant vice president. Mr. Anderson is in charge of the installment loan de $3,000,000. Of this increase, $1 million will be partment. added to the capital stock account, raising it to $10 million, and $2 million Joins Cortez Bank will go into the surplus account, in Paul Williamson, assistant vice pres creasing surplus from $11 million to ident, First National Bank, Durango, $13 million. has joined the Citizens State Bank in Stockholders will vote on the pro Cortez, Colo., as assistant vice presi posal September 12. dent in charge of the installment loan department. He had been with the Trinidad Changes Durango bank for four years. Albert J. Sardello, vice president and cashier, has been elected president Golden Bank Sold of the First National Bank of Trini Directors of the First National Bank dad, Colo., succeeding Charles Duran, in Golden, Colo., recently announced who has resigned because of ill health the sale of controlling interest to Mid and pressures of private business. west Financial Corporation, a publicly Eric Arnold has resigned as vice held corporation based in Colorado. president to join a bank in Lockley, No changes in management, poli Tex. Mr. Duran and Mr. Arnold both cies or personnel are planned. joined the Trinidad bank shortly after the first of the year, coming from Converts to National Bank Lockley. The First State Bank of Westmin At the same time it was announced that two Alamosa bankers have joined ster has been converted to a national the Trinidad bank. They are Lloyd bank and now is operating under the Burton, Jr., formerly senior vice presi name of the First National Bank, dent of the First National Bank in Westminster. On Boulder Board Lyle E. Quinby, well known Boulder businessman, has been elected a direc tor of the National State Bank in Boul der, filling the vacancy caused by the death of Carl E. Buckingham earlier this year. Aurora Prom otion R. D. Hermes has been promoted to assistant cashier in the loan depart ment of the Peoples Bank in Aurora, Colo. He has been employed by the bank since graduating from Regis Col lege in 1958. Adds New Departm ent The First National Bank of Fort Morgan, Colo., recently opened a new installment loan department. Hugh W h it c om b, experienced installment loan officer, is manager of the new department. Heads Utah B ank; Dove Creek Change Jerry Havel, executive vice presi dent, Dove Creek State Bank, Dove Creek, Colo., has been named manager of a recently chartered national bank in Moab, Utah. He will continue as executive vice president of the Dove Creek bank. T. A. Weed, formerly assistant cash ier, has been elected cashier of the Dove Creek State Bank. Mr. Havel was associated with the First National Bank, Ogallala, Neb., prior to joining the Dove Creek bank. Three New Services The Montrose National Bank, Mont rose, Colo., recently opened three new customer services in one day. They included a drive-in window, courtesy parking on a newly paved lot and new banking hours for the drive-in facility. Hours for the main banking quarters remain unchanged. Ask Charter in Salida An application for a state charter for a new bank in Salida, Colo., has been filed by a group of Chaffee Coun ty businessmen. The new bank, if ap proved, will be known as the Bank of Chaffee County. Members of the group requesting the charter are F. Marion Chelf, Wal ter L. Cosslett, Mortiz N. Kerndt, Rob ert W. Nevens, Edward Touber and S. Parker Woolmington, all of Chaffee County, and Richard K. Schumann of Denver. It is expected that Mr. Schumann, until recently president of the Rocky Mountain Bank in Denver, will be come chief executive of the new bank. N o rth w e s te rn https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B a n k e r, S e p t e m b e r , 1961 74 Wyoming News W y o m in g N e w s Lander Bank Sold To Laram ie, K im ball Men Robert R. Bentley, formerly vice president of the American National Bank, Kimball, Neb., and R. W. Fink biner, formerly president, First Na tional Bank of Laramie, Wyo., have purchased controlling interest in the First National Bank of Lander, Wyo. The purchase was made f ro m Har old H. Parks, pres ident, and Harry Harnsberger, W y oming supr eme court judge. Mr. Parks has resigned as presi dent and is being succeeded by Mr. m . e . f is h e r f i n k b i n e r . Con- trolling interest in the bank is held equally between Mr. Finkbiner and Mr. Bentley. Mr. Bentley becomes executive vice president. Max Fisher, executive vice president of the Laramie Bank, has been named president of the bank, succeeding Mr. Finkbiner. All parties in the negotiations for the sale of the Lander bank were rep resented by Charles E. Walters Com pany of Omaha. Joins Lander State Lester R. Pagels has joined the Lan der State Bank, Lander, Wyo., as as sistant cashier. He joins the bank after three years of experience in the Citizens National Bank, Wisner, Neb., where he was cashier. Before that he was a national bank examiner working out of Omaha. HOW The First and only Bank in the area using Electronic Data Processing Today. . .The First National Bank of Denver, now in its sec ond century of service, is first in this area and one of the first banks in the United States to utilize the advantages of Electronic Data Processing in deposit accounting. Once again The First sets the pace in meeting the challenge of the future. In the near future we will be able to serve our area correspondent banks as an automated central data processing headquarters fo r demand deposit accounting. System C ontrol Console an d M agnetic Tape Units fo r sto rin g info rm a tion T he F ir s t N a t io n a l B ank Member Federal Deposit Insurance Corporation N o rthw estern B a n k e r, S e p t e m b e r , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7961 of D enver Approve Scholarship Directors of the Shoshone-First Na tional Bank, Cody, Wyo., have author ized an annual scholarship of $200 for graduating seniors of the Cody High School, beginning with the 1962 class. The scholarship will be granted bas ically to students majoring in com merce and business administration. H O W T O A P P R A ISE . . . (Continued from page 31) income basis netting $6.50 an acre in rent are providing their owners with a 5 per cent return. Market Value By analyzing sales of comparable farms and using market value data, a reasonable market value is obtained. County, district and state market value data are used. These are Fed eral census values, U. S. Department of Agriculture indices of farm real es tate values, and state agricultural ex periment station data on estimated values. This information gives the ap praiser an over-all view of market value that will enable him to adjust individual sales to a current basis. Another useful item in market value analysis is putting together the pre vious sale history of the farm. An ab stract of title of the farm can be espe cially helpful in this task by providing leads to sales transactions which can be run down in courthouse records. With all the various types of mar ket value data at hand, the appraiser is in a position to set a market value estimate. In doing this he compares the farm under consideration with the farms for which he has adjusted sale price information, allowing for recent appreciation of land, and with avail able land market reports. The correlation of income and sales value estimates for the determination of appraisal value is based on the judgment of the appraiser. First, in come and market value estimates are compared. Then non-income features, which may account for the difference between the two estimates, are consid ered. The appraiser will go back over his appraisal, asking himself what item or items would attract a buyer, what the weak features of the farm are, and what features, if any, have been missed. He will analyze his ap praisal from the standpoint of sources of value, how much of the value is based on income, and how much on non-income features. After carefully considering all fac tors and weighing all the evidence, the appraiser reaches his final judgment of the appraised value of the property. To sum up, income, cost and market io value are closely linked together in the valuation of property. Since cost is concerned mainly with buildings and improvements, and not with land, cost may play a minor role. However, both income and sale value should be explored and ana lyzed in making a farm appraisal. The amount of emphasis to place on sales, on income and on cost depends on the type of appraisal and underlying con ditions. In a condemnation case the court may be particularly concerned with the sale price of comparable proper ties. And, in this same case the court may be concerned also with the cost of a relatively new set of farm build ings that has to be moved to make way for a new highway. On the other hand, in a loan appraisal the lender may be especially interested in the estimated income. Thus, in every farm appraisal the appraiser should use all approaches to the extent they are applicable and ap propriate. In many cases the appraiser may make both an income and market value appraisal; the market value usu ally being the higher of the two be cause it covers the non-income fea tures not included in the income value.—End. New E conom ic A dvisor The Bank of Montreal has an nounced the appointment of John E. Toten as econom ic adviser, suc ceeding E d wa r d A. Walton. He has b e e n ass oc iat e economic adviser for the past two years. He joined the bank in 1935, and in recent years he served as an as J. E. T O T E N sistant superin tendent of the western credit depart ment in the head office in Montreal. Texas Executive Change William R. Hoge, well-known Texas banker, has been elected general vice president of Bank of the Southwest, according to A. G. McNeese, Jr., presi dent, who made the announcement in Houston. Mr. Hoge, who resigned his post of senior vice president at Republic Na tional Bank, Dallas, last year for pri vate business interests, was to resume his new duties September 1. Helena Prom otions Burton Felder and James A. John son were recently promoted to vice president and assistant vice president, respectively, at the First National Bank & Trust Company, Helena, it was announced by N. E. Turnquist, president. Mr. Felder formerly was cashier and assistant trust officer. He retains his duties as cashier. Mr. Johnson former ly was assistant cashier and now is in charge of personnel and bank opera tions. K alispell Grand Opening Grand opening of the new Conrad National Bank building in Kalispell was held recently, marking the com pletion of nearly two years of work after the old bank building was de stroyed by fire September 14, 1959. A $500 door prize was awarded, re freshments were served, gifts were given to all who attended the opening and youngsters drew for two bicycles. Forsyth Construction Ground has been broken for a new Forsyth State Bank building, Forsyth, Mont. Construction of the new building is under way and all contracts have been awarded. Howard H . Stanley Howard H. Stanley, 71, prominent Great Falls, Mont., insurance man and honorary director of the Montana Bank in Great Falls, died recently at a Great Falls hospital. Mr. Stanley was made an honorary director last January when he official ly retired as active director. He served as president of the bank from 1938 to 1942 and his affiliation with the bank dates back to 1933 when it was organ ized. Franklin T . M errill Franklin T. Merrill, director and past president of the Midland National Bank, Billings, Mont., died last month at the age 74. He was president of the bank until his retirement in 1952. Mr. Merrill started his banking ca reer with the First National Bank in Great Falls as a messenger in 1906. In 1918, he became cashier of the new ly formed Montana National Bank in Havre where he served until 1929. He then moved to Minot, N. D., in 1931 as executive vice president of the Union National Bank. The following year he became president of the Minot bank. He came to Billings in 1937 as vice president of the Midland National and was elected president in 1950. Mr. Merrill had the unusual distinc tion of having been president of two state bankers associations. In 1936 he was president of the North Dakota Bankers Association, and in 1947 he was president of the Montana Bankers Association. Great Falls Prom otion E. C. Joslyn, Jr., assistant vice presi dent and cashier since 1959, has been promoted to vice president of the First Westside National Bank, Great Falls, Mont. He joined the bank in 1956 as assistant cashier. Lee W illiam s Lee Williams, 79, president, Deer Lodge Bank & Trust Company, Deer Lodge, Mont., died recently after a brief illness. He was elected to the Deer Lodge Bank & Trust Company board in 1933 and became president in 1953. Joins Billings Bank James F. Spelman, formerly man ager of the Carpenter Paper Company office at Billings, Mont., has been named vice president of the First Na tional Bank there. He will be in charge of the business development program. He had been associated with the paper company for 17 years. Moves to Rudyard Vernon F. Lauback, formerly a staff member of the Citizens Bank of Mon tana in Havre, has been named cashier and manager of the Farmers-Merchants Bank, Rudyard, Mont. N o rth w e s te rn https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B a n k e r, S e p t e m b e r , 1961 76 WE HELP BRING Need an extra hand when cattle start to move? There’s lots of work at both ends of the trail. . . and financing must follow the cattle from ranch to feedlot to market. The U.S. National is geared to help you in all types of cattle financing. Your participation loans are handled with cattle “ know-how” , and we are happy to work with you in developing financing programs tailored to the needs of your cattle customers. Call on U .S. for that “ extra hand” at cattle moving time. All our helpful correspondent facilities are yours for a phone call — 341-8765 — Omaha. M em ber Federal Deposit Insurance Corporation N o rth w e s te rn Banker, S ep te m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 ’ EM IN 77 M . P. B A IR D B. D. B E R K H E IM E R H. V . O S T E R B E R G C. N E U M A N N R. E. M IS K O ti Mth N ebraska Stated to r O ctober I t -M2 ORE than 1,000 bankers and their wives are ex pected to register for the 65th annual convention of the Nebraska Bankers Association in Omaha, October 11-12. Headquarters will be in the SheratonFontenelle Hotel. NBA President Minor P. Baird, president of the Farm ers State Bank at Superior, has announced a program of diversified topics featuring top-notch speakers for each subject. One of the principal addresses will be delivered by The Honorable Roman L. Hruska, United States Sena tor from Nebraska, who is planning to appear on the pro gram the first day of the convention. Three other out-of-state guest speakers include James H. Clarke, vice president of the American National Bank and Trust, Chicago, who will discuss the government bond market; Howard J. Stoddard, president of the Michi gan National Bank at Lansing, Mich., one of commercial banking’s foremost leaders in the effort to obtain tax equality among financial institutions, and Dr. Arthur A. Smith, economist and vice president of First National Bank in Dallas, Tex., a noted speaker and student of the nation’s economy. A feature of the convention this year will again be a panel discussion. This one will center on “ Industrial Development for Nebraska.” Serving with Mr. Baird the past year as vice president of the Nebraska Bankers Association is B. D. Berkheimer, president of the First National Bank in Gordon. He is scheduled to move up to the presidency at the annual election of officers for 1961-62. John M. Shonsey, executive vice president, The Omaha National Bank, is state asso ciation treasurer. H. V. Osterberg is NBA secretary. Chairman of the general convention committee is C. B. Newman, president of the South Omaha Bank. Serving with him are W. B. Millard, Jr., president, The Omaha National Bank, and Kenneth G. Harvey, president, Doug las County Bank. Chairman of the arrangements com mittee is A. J. Hallas, president, The Stock Yards National Bank. Chairman of the entertainment committee is John B. Foley, vice president, Packers National Bank. Chair men of the banquet committee are Mr. and Mrs. Kermit Hansen. Mr. Hansen is vice president, The United States National Bank. Mrs. C. D. Anderson is chairman of the hostess committee. A.M. 9:00 Registration — Mezzanine Floor, Sheraton-Fontenelle Hotel. M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wednesday, October 11 P.M. 12:00 Noon Luncheon Session — Ballroom, SheratonFontenelle Hotel. Presiding—Minor Baird, president, Nebraska Bank ers Association, Inc., and president, Farmers State Bank, Superior. Invocation—The Very Rev. Carl M. Reinert, S.J., president, Creighton University. Welcome—The Honorable James J. Dvorak, mayor, city of Omaha. Response and President’s Address—Minor Baird. Remarks—Robert I. Stout, state chairman, A.B.A. Savings Bond Committee, and chairman of the board, First National Bank, Tekamah. “Your State Banking Department” — Ralph E. Misko, director of banking, state of Nebraska, Lin coln. Address—The Honorable Roman L. Hruska, United States Senator, Nebraska. “ The Government Bond Market as I See It”— James H. Clarke, vice president, American Na tional Bank and Trust Company, Chicago 111. “Tax Justice Between Competing Financial Insti tutions—Howard J. Stoddard, president, Michigan National Bank, Lansing, Mich. Business Session: Report of Committee on Nominations. Election of officers. Report of Committee on Resolutions. P.M. 5:30 Social Hour—Ballroom, Sheraton-Fontenelle Hotel. Delegates and Ladies, Hosts, Omaha banks. 7:00 Convention Banquet—Omaha Civic Auditorium. Installation of officers. Pops Concert—Omaha Symphony Orchestra, Jo seph Levine, music director and conductor. Thursday, October 12 A.M. 9:30 Convention Session — Ballroom, Sheraton-Fonte nelle Hotel. Presiding—Minor Baird, president, Nebraska Bank ers Association, Inc. Election—American Bankers Association. NEBRASKA CONVENTION . . . (Turn to page 83, please) N o rthw estern B a n k e r, S e p t e m b e r , 1961 78 drought condition has accentuated the problems facing the beef cattle grow ers, Mr. Davis added. This conference, Mr. Davis states, will be of great benefit to the bankers attending, in order that they may bet ter serve their customers in their repective communities. The wives of the bankers attending will be the guests of the bank’s trust department at a luncheon the same day. O m a lui X e w s * HE First National Bank of Omaha T will present on Thursday, Septem ber 14, its annual Beef Cattle Confer ence. Bankers from Iowa, Nebraska, South Dakota, Wyoming, Colorado, and Kansas will attend the confer ence which is again to be held at the Sheraton Fontenelle Hotel in Omaha. J. F. D A V I S F. L. L O V E A panel discussion on the future out look of the beef cattle situation for the coming year will be presented by specialists in the fields of raising, feed ing, and financing livestock. The eco nomic outlook of the nation will be presented at a luncheon by Arthur S. Harper, vice president of Lionel D. Edie & Company, a New York econom ic consulting firm. Frank L. Love, recently elected vice president of the First National Bank, will moderate the beef cattle panel which will be made up of Courtenay C. Davis, a livestock grower from Horse Creek, Wyo.; Lee Kolmer, asso ciate professor of agriculture, Iowa State University; Leonard N. Burch, president of the First National Bank, Greeley, Colo., and Erwin E. Dubbert, a prominent feeder from Laurens, Iowa. Mr. Love is the former owner of the Colorado-Nebraska Cattle Com pany. John F. Davis, president of the First National Bank, said that the increase in the support price of corn, along with an approximate 20 per cent drop in corn production, is resulting in feeders facing increased costs with their cattle feeding programs. In the northwest plains states, the extreme Municipal and Corporate Bonds Listed Stocks Unlisted and Local Stocks ORDERS EXECU TED ON A L L P R IN C IP A L EXCH AN G ES * A state bank charter has been issued to the Southwest Bank at 90th and Center Streets in Omaha. State Bank ing Director Ralph Misko announced last month he granted the charter after the bank’s capital was raised to $500,000. Backers had planned on $275,000 but were advised by Mr. Misko the initial capital would have to be a half million dollars. The institution now must receive approval of the Federal Deposit Insur ance Corporation. Operations are ex pected to start within 90 days. The Omaha men who organized the new bank are: William A. Fraser, Jr., F. F. Nebergall, Edward Miller, Victor L. Toft and Edward F. Owen. * * * It is back to school for these Omaha National bankers: Robert A. Lyle, assistant cashier, was a first-year student at the Finan cial Public Relations School at North western. Tom Troupe, assistant audi tor, Leo A. Evers attended the NABAC school for bank auditors and comptrol lers at the University of Wisconsin. Tom completed his third year; Leo his first. Attending their third and final ses sion at the School of Banking in Madi son were Jesse Miller, trust, and Rob ert. L. Zabawa, assistant cashier. Fin ishing their second year were Robert E. Johnson and Robert S, Knicely, both assistant vice presidents. Com pleting their first summer at Madison were H ubert Shellenberger, corre spondent banks, and Edward Kohout, consumer credit. * * * Edward W. Lyman, president of the C H IL E S -S C H U T Z CO. OM AH A, NEBRASKA 412 Farm Credit Building LIN C OLN , NEBRASKA 203 Stuart Building P h o n e 3 4 6 -6 6 7 7 P h o n e H E m lo c k 2 -3 3 2 5 LEXING TO N, NEBRASKA Box 532 CHADRON, NEBRASKA Box 007 P h o n e F A ir v ie w P h o n e H E m lo c k 2 -3 3 6 6 4 -3 7 6 6 United States National Bank of Oma ha, and Douglas county savings bond chairman, said over $114 million in savings bonds were purchased during July. This runs the 1961 figure to $9,806,603 for 50.4 per cent of the 1961 quota. Y O U R S T A T E B A N K E R S A S S O C IA T IO N O F F IC IA L S A F E , V A U L T A N D T IM E L O C K EXPERTS F. E. DAVENPORT & CO. O M A H A N o rth w e s te rn B a n k e r, S e p t e m b e r , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J96I > 79 Clarence Kuhlman, Safekeeping Department He works fo r you . . . The Safekeeping Department provides one of The Omaha National’s most convenient services. You may never see Clarence Kuhlman, but whenever you want to buy or sell government securities, or keep them in our vaults, he is on the job for you . . . just another of the many Omaha National Bank people who help to serve you quickly and effi ciently. T h e O m 1 7 th a n d F a r n a m S t r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a eets h a N a t i o n a l B a n k Member Federal Deposit Insurance Corporation N o rth w e s te rn B a n k e r, S e p t e m b e r , J96J 80 Nebraska News WHEN NEW DRIVE-IN facilities for the First National Bank of Omaha were opened last month in the former city testing garage, patrons got this view (left) as they entered the drive way. RIGHT— The first customer to use the facility, Mrs. N OLD city of Omaha facility was turned into a banking facility last A month when the First National Bank of Omaha opened its Drive-in, Walk-In Bank. The former testing station at 17th and Chicago which for 25 years had served to check the safety devices of every automobile and truck licensed in Omaha is now being leased to the bank for the use of its customers. Three drive-in teller windows have been installed where once motorists had their brakes, headlights, and horns tested. A walk-in lobby has been constructed on the west side of the building where bank depositors who live and work nearby can be served by the facility. Jim Barnhart, the facility manager, said the location at 17th and Chicago provides our customers with relative ly traffic free banking service near the heart of downtown Omaha. There is more than ample room for the traffic flow to the tellers’ windows or for those customers who wish to park and transact their business inside. To celebrate the opening of the Drive-In, the First National Bank gave away, free, the General Foods Cook book to anyone who opened a savings account with $100 or more, or a cus tomer who added $100 or more to his present account. The book was avail able both at the Drive-In and at the savings department in the main bank building. The unique features of the General Foods Cookbook were explained by at tractive young ladies in a “kitchen” which had been constructed in the bank lobby. Kirkham-Michael & Associates were N o rth w e s te rn Banker, S ep te m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 Irene M. Walsh, was presented a transistor portable radio by C. E. Paulson, a.c., while Charles K. Voorhees, v.p., stood by to extend congratulations. The new facility is approximately eight blocks from the main bank building and outside the loop. the architects; Foster-Smetana Com pany was the general contractor. The board of directors of the First National Bank of Omaha has approved an increase of the bank’s surplus from $3,000,000 to $4,500,000. The increase came out of the bank’s undivided prof its. This gives the First National Bank of Omaha a total capital struc ture of $7,500,000. * * * Edward XV. Lyman, president of the United States National Bank of Oma ha, has announced a $1 million inc r e a s e in the bank’s c a p i t a l stock. The board of di rectors ado p te d r e so l u tions affecting the transfer from un d i v i d e d profts and reserves. The new capital stock figure is $3,000,000, surplus E. W . L Y M A N $4,000,000, and un divided profits and reserves $2,150,000. The bank also announced new ex panded business hours. It will be open from 9:30 a.m. to 4 p.m. Monday through Thursday, and 9:30 a.m. to 6 p.m. on Friday. * * * William J. Coad, 81, prominent Oma ha business and civic leader, died last month in an Omaha hospital. Mr. Coad was a director of The Omaha National Bank for many years and upon his retirement from that position earlier this year was named a member of the bank advisory board. He was president of Omar, Inc., a large midwest bakery firm, from 1938 until 1949 and had served as chairman of the board since 1949. During the depression days of the early 1930’s, Mr. Coad was chairman of the Omaha branch of the Federal Reserve Bank of Kansas City. Many Nebraska bankers became well acquainted with Mr. Coad when he organized the Nebraska Conserva tion Foundation in 1949 in an effort to curb soil erosion in the state. Near ly 350 bankers in the state joined the Foundation. In addition to his wife, one son and one daughter, Mr. Coad also is sur vived by two brothers and three sis ters. One brother, Arthur L. Coad, is president of Packers National Bank of Omaha. * =f< * The Union Stock Yards Company has announced a series of six “ StockerFeeder Carload Auction Sales” to be held at the Omaha yards. All sales are scheduled for Friday, starting at 9:30 a.m. The first was held August 25. The rest will be on September 8 and 22, October 6 and 27 and No vember 3. Rules and regu lations governing the sales state that cattle must be consigned to F. W . G IL M O R E an Omaha com mission firm, a ring fee of 50 cents per head will be charged in addition to regular marketing charges (for adver tising and ring expenses), cattle will 81 MEET FRANK LOVE Frank is the new head of our Correspondent Bank Department. His entire business life has been devoted to agriculture and livestock, and he comes to us direct from a ranching and cattle feeding operation of his own. You’ll enjoy meeting him, because we think you’ll find him a man of proven judgment where cattle and ranching are concerned. He is one of the reasons we say banking is person-to-person . . . man-to-man. FIRST NATIONAL RANK OF OMAHA 16TH & FARNAM ■ OMAHA, NEBRASKA ■ MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Frank Love and Harold Hancock discuss cattle business. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w e ste rn B a n k e r, S e p t e m b e r . 1961 82 Nebraska News be sold in carload lots and should weigh as close to 22,000 pounds as pos sible, records of the clerk of the auc tion will govern all sales, and settle ment must be made through the com mission firm to which cattle are con signed. It is suggested that buyers not per sonally known should bring a letter of credit. Fred W. Gilmore, president of the Union Stock Yards Company, has an nounced that the yards also will have its 17th Annual Omaha Feeder Calf Show and Sale, October 19 and 20. These sales will be for pens of 20 and carloads of 50. H * The Federal Reserve Board in Wash ington has listed an $800,000 addition to its branch banking building in Omaha as among the needs of the sys tem. Its construction is expected after five years. The Senate Banking Committee ap proved a bill to permit construction of new branch banking buildings for the system, but warned against extrava gance. The Omaha branch was remodeled and enlarged several years ago. It is under the supervision of Vice Presi dent Phil A. Debus. W a y n e M. Thorndyke, v i c e president of the United States Na t i on al Bank, is s c h e d u l e d to serve on a panel on livetock feed ing at the Nation al A g r i c u l t u r a l Credit Conference W . M. T H O R N D Y K E in Dallas, Texas, to be held November 13-14. * * * The Nebraska Investment Bankers Association will have its annual Field Day, Thursday, September 21, at the Omaha Country Club. Following a day of golf, a social hour and dinner will be held in the club dining room, at which time golf prizes and door prizes will be awarded. William Raynor, general chairman, announced there will be a cocktail party and dinner in honor of out of town guests on Wednesday evening, September 20, at the Town House Ballroom at the Town House Motel, 7000 Dodge Street. Pairings for the following day’s golf tournament will be made at that time. Tim Slattery will be golf chairman, Bill March will handle the Squawk Try For your Banking Needs ^ Complete Line of Bank Supplies. ^ Check Imprinting, ^ Office Equipment & Supplies. ^ Office Furniture. ^ Stationery, Exchange and Cecil Slocum will be in charge of the Calcutta Pool. * * * The First National Bank of Omaha has announced that the bank is now open to the public for regular banking transactions from 9:30 a.m. to 4:00 p.m. Monday through Thursday and 9:30 a.m. to 6:00 p.m. on Friday. The new drive-in facility is open from 7:15 a.m. to 6:00 p.m. each day. The main bank and the drive-in are both closed on Saturday. Other downtown Omaha banks also adopted similar hours. * * * Three gunmen robbed the Cross roads office of the First West Side Bank of Omaha last month and made their getaway with approximately $71,000. It was believed the bandits got $50,000 cash and $21,000 in government Series E bonds. The men later were spotted by a citizen in Milwaukee who called police and the FBI subsequent ly identified two of the men from evi dence collected and published their pictures immediately with notices of warrants for their arrest. The three gunmen went to the home of John S. Wells, 55, manager of the Crossroads office, and captured him at gunpoint about 10 p.m. When he told them he could not open the safe due to the time lock he was badly beaten, then held captive with his wife in their home throughout the night. Dur ing the 11-hour ordeal he was beaten several times. At about 9:00 a.m. the next day the bandits drove in the Wells car to the bank office, where they forced him to open the safe. They returned to the Wells home, bound the couple and then made their escape. Joins Sidney Bank Peter Brodkey has joined the loan department of the Sidney National Bank. He had previously been em ployed at the South Omaha Bank and Center Baank in Omaha prior to mov ing to Sidney. yXXXXVV- • »»»»l 111mm■■■• I f IT’S AM ERICAN! your Bank in the l| EAf/v^ Since 1887 AMERI CAN NATIONAL BANK ST. JOSEPH, MO. MEMBER FEDERAL DEPOSIT INSURANCE CORP ^ N orth w e ste rn B anker, S e p te m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 / / / / / / / / ^ I 83 Nebraska News tilth N ebraska Convention P rogra m . . . (Continued from page 77) Presiding—Minor Baird, president, Nebraska Bank ers Association, Inc. Presentation of Committee Chairmen. “What It Looks Like Now”—Dr. Arthur A. Smith, economist and vice president, First National Bank in Dallas, Dallas, Tex. Presiding—Chase Neumann, A.B.A. state vice pres ident, and president, Farmers and Merchants Na tional Bank, Oakland. “Your College of Agriculture”—Dr. E. F. Frolik, Dean and Director, College of Agriculture, Univer sity of Nebraska, Lincoln. “ Industrial Development for Nebraska” — Panel Discussion. Moderator—J. 0. Peck, chairman of the board, The Central National Bank, Columbus. Panelists: W. E. Young, vice president The Cozad State Bank, Cozad. Jerry Huse, publisher, Norfolk Daily News, Nor folk. Charles Uerling, Sr., president, Charles Uerling Company, Hastings. LADIES’ PROGRAM Wednesday, October 11 P.M. 1:00 Ladies’ Luncheon—Omaha Country Club. (Buses leave Sheraton-Fontenelle Hotel at 12:00 noon.) 5:30 Social Hour—Ballroom, Sheraton-Fontenelle Hotel. 7:00 Convention Banquet—Omaha Civic Auditorium. Tuesday, October 12 P.M. 12:00 Noon to 1:00 Ladies’ Drop-In Luncheon — Omaha Athletic Club, 1714 Douglas Street.—End. P.M. 12:30 Luncheon — Ballroom, Sheraton-Fontenelle Hotel, Delegates. Joins N o rfo lk Bank Robert G. Bratager, 39, has been elected assistant vice president of the National Bank of Norfolk, it is an nounced by Henry Reynolds, presi dent. Mr. Bratager succeeds Herb McCulla, who recently was named vice president of the Great Falls National at Great Falls, Mont. Mr. Bratager formerly was associ ated with the Northwest Security Na tional of Sioux Falls branch at Madi son, S. D., and for the past two years has been in Northwest Bancorporation headquarters in Minneapolis. New Building at Ainsworth The National Bank of Ainsworth has purchased two lots on which a new bank building will be erected. Al though architectural plans have not yet been started, it is planned to have drive-in banking facilities and other modern services built in the new structure, according to Hans Rohwer, president. N E B R A S K A CA LEN D A R September 11, NBA Agricultural Credit Conference, Lincoln Hotel, Scottsbluff. September 12, NBA Agricultural Credit Conference, Fort Kearney Hotel, Kearney. October 11-12, NBA annual conven tion, Sheraton-Fontenelle Hotel, Omaha. Artistry in B o m s p o n d e n t B a n k i n g . .. Check with Central... Check with Central...Check with Central... Check with Central HARLEY PATTON, Jr. and DON DELANO look forward to seeing you at the Nebraska Convention, October 11 and 12 in Omaha. T H IM K L _ A N D M em b er F. D. I . C . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F e d e ra l R eserve System j FULL-SERVICE ^ jtT BANK T R U S T C O . Central Park... 15th & Arapahoe Street, Denver 17, Colorado N o rth w e s te rn B a n k e r, S e p t e m b e r , 1961 84 pruni W. GRIFFIN, executive vice • president and trust officer, First Continental National Bank and Trust A Company, has announced the estab lishment of two Collective Investment Funds. These funds provide pension snaring trust iunus which First Con tinental is trustee or agent with a w e l l diversified a n d flexible investment p r o gram. Primary reason for the new funds, according to Mr. Griffin, w a s to provide First Con A. W . G R IF F IN tinental’s c o r r e spondent banks and corporation cli ents with a diversified investment pro gram for retirement trusts which cover only a few employees; however, there is no limit on the amount that can be invested by a trust in either of the new funds. The initial investment in Fund C, consisting of fixed income securities of high quality, Mr. Griffin stated, was $400,000. The second fund, known as Fund D, is a diversified list of common stocks and the initial investment was $600,000. Prior to July 1, Common Trust Funds A and B were established by First Continental to provide this same diversification and flexibility of invest ments for trusts of individuals. * * * Shareholders of the National Bank of Commerce and the First Trust Com pany voted last month to consolidate J H) etter the two institutions under the name of National Bank of Commerce Trust and Savings Association. cV-^orrespondent SERVICE PHONE GRover 7-8911 More than two-thirds of National Bank’s 90,000 shares and First Trust’s 30,000 shares were voted in approval of the proposed merger. Following the necessary steps to complete con solidation, 130,000 shares of the new bank at $20 par value were to be is sued. National Bank shareholders were to receive new shares on a one for one basis. First Trust sharehold ers were to have 40,000 shares to di vide on a one and one-third for one basis. The merger previously had been ap proved by directors of both institu tions as well as the Comptroller of the Currency. The board of directors is made up of 25 men as follows: Byron Bunn, chairman; Albert A. Held, vice chair man; William I. Aitken, Robert H. Ammon, Everett E. Angle, R. E. Camp bell, Earl Carter, Oscar E. Clarke, Jr., Charles H. Flansburg, Arnott Folsom, Carl D. Ganz, Otto H. Liebers, Elmer E. Magee, Henry Maser, Gardner Moore, O. J. Shaw, Phil R. Sidles, P. O. Southwick, M. E. Springer, Charles W. Swingle, Elwood N. Thompson, B. N o rth w e s te rn Banker, S ep te m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 Í 85 Ask Gene Reece about our two new Collective Investment Funds. .. Our newly established Collective Investm ent Funds C and D provide a diversified investment program for retirem ent trusts. They will especially benefit those trusts covering only a few employees, although there is no lim it to the am ount that can be invested. Fund C is a fixed income fund for stability and continuity of income. Fund D is made up of high quality common stocks to provide both reasonable income and opportunity for growth. Contact Gene Reece, Vice President and Trust Officer, about the use of these funds in the establishm ent of a retirem ent plan or the adm inistration of an existing plan. s t FIRST CONTINENTAL IN A T I O IN A L I 2 T H & N ST B A N R E E T K & T R U S L I N C O L N , T N C O M U A I N Y E A S B R K A m e m b e r fe d e r a l d e p o s it in s u ra n c e c o rp o ra tio n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s te rn B a n k e r, S e p t e m b e r , 1961 86 Nebraska News A. Weil, Myron Weil, John C. Whitten and Glenn Yaussi. The executor officer staff is made up of: Mr. Dunn, chairman; Mr. Held, vice chairman; Glenn Yaussi, presi dent; Myron Weil, executive vice president; H. A. Brockmeier, Gene C. Eaton, E. N. Thompson and Robert A. Wekesser, senior vice presidents; John C. Whitten, senior vice president and trust officer; O. L. Clarke, Jr., vice president and trust officer; Clarence E. Hinds, vice president, trust devel opment, and Paul Bogott, vice presi dent and cashier. Mr. Thompson was president of the First Trust Company. Mr. Whitten was vice president and senior trust officer, and Mr. Hinds was vice presi dent and secretary-treasurer at First Trust. The other executive officers of the newly-formed bank were with National Bank of Commerce. * * * First Continental National Bank and Trust Company announces that the substantial increase in capital stock voted by the stockholders June 21 has been approved by the Comptroller of Currency. The increase includes a stock divi dend of 12,500 shares and a sale of 12,500 shares. Shareholders of the bank will have proportionate rights to acquire the new stock. The capital account of the bank in creases from $3,750,000 to $4,250,000, and the surplus account increases to the $4,250,000 figure. The new total of capital and surplus accounts is $8,500,000 and the total capital funds of the bank now exceed $10,000,000. * * * First Continental National Bank and Trust Company has announced the appointment of three new officers and the formation of a mortgage loan de partment. The new officers are: How ard A. Chapin, vice president and trust officer; Neil W. Hall, vice president, and Gerald H. Maddox, assistant vice president. C H A P IN M ADDOX HALL Mr. Chapin will be associated with the trust department, while Mr. Hall and Mr. Maddox will be in the new mortgage loan department. In fur ther expansion of the new department, Richard D. Hitz also joined the bank last month to assist in mortgage lend ing activities. All four of these men N orth w e ste rn B a n k e r, S e p t e m b e r , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 previously were with the First Trust Company of Lincoln. Mr. Chapin is a member of the Omaha-Lincoln Chapter of Financial Analysts and was vice president and trust officer of the First Trust. Mr. Hall is a member of the G. I. loan committee of the Mortgage Bankers Association. Mr. Maddox is a member of the Society of Residence Appraisers. Both Mr. Hall and Mr. Maddox are members of the Nebraska Real Estate Association and were original mem bers of the Nebraska Mortgage Asso ciation.—End. P rom oted at Neligli Terry Trueblood was promoted to assistant cashier at the National Bank of Neligh during a board of directors’ meeting last month. Mr. Trueblood has been with the bank for some time, more recently as a teller. Capital Increased $ 1 0 0 ,0 0 0 Capital stock of the First National Bank of North Platte has been in creased from $250,000 to $350,000 by directors following approval of the proposal by the Comptroller of the Currency. O pen Drive-In Bank Grand opening ceremonies for the new drive-in bank of the American Na tional Bank of Sidney were held in mid-August. The new facility has two drive-up windows as well as a walkup window in the lobby area. Jack Flohr, assistant cashier, and Jerry Dykman are the tellers operating the new service, located at 12th and Jackson Streets. New Ainsworth Officers T. E. Ritter has been elected presi dent of the Commercial National Bank at Ainsworth. He fills the vacancy created by the sudden death in July of Roger S. Thorley, 36. Mr. Ritter had been serving as chairman of the board. Esther Anderson Thorley, wid ow of Mr. Thorley, has been named chairman of the board. Other officers of the bank continue in the same positions, including Mrs. Phyllis E. Thorley, vice president; Miss Orfa Carr, cashier, and Betty Osborn and Donald E. Richardson, as sistant cashiers. W ilb e r Banks to Merge Merger of the Wilber State Bank and the Saline State Bank, both of Wil ber, was revealed recently by the pres idents of the two banks. H. V. Jelinek, president of the Wilber State, and J. J. Novak, president of the Saline State, said the merged institution will continue under the name of Saline State Bank of Wilber, with offices lo cated in the present quarters of the Saline bank, which will be improved. The consolidation is to be approved by stockholders of the two banks and by FDIC supervisory officials. Com bined deposits will be approximately $2,200,000, capital will be $100,000, sur plus $50,000, and undivided profits over $75,000. Mr. Novak stated that all officers and employees of the two banks will continue with the combined bank. A. W. Fridrich is cashier and Irvin F. Novak, vice president of the Saline State. Frank J. Kohel is cashier and S. A. Shestak is vice president of the Wilber State. Mr. Novak also announced the pur chase of the building adjoining the present Saline State Bank building and said that an expansion program will be started after about one year. Battle Creek Bank Sold J. J. DeLay and Paul Zutz have sold their controlling interest in the Battle Creek State Bank to William M. Swoboda of Verdigre and A. W. Hengstler of Creighton. Mr. Swoboda succeeds Mr. DeLay as president. Mr. Hengst ler takes the place of Mr. Zutz on the board of directors. Paul Schoening will continue as cashier and d i r e c t o r for several months and Henry F. Walz will con tinue as vice president and director. Other directors of the bank are Charles Zimmerman, Adolph Kuester, Elmer Doering, Simon Steffen and Bernard DeLay. J. J. DeLay is president of the De Lay First National Bank of Norfolk. Mr. Zutz is executive vice president of the same bank. Mr. Swoboda was employed by In vestors Diversified Services the past six years. He and his family of 10 children plan to move from Verdigre to Battle Creek soon. New Cashier at Grafton Louis Carney of Heartwell has been elected cashier of the Grafton State Bank, Grafton, to succeed Claude A. McDonald. The latter had served as cashier the past year following the sudden death of his brother, W. S. McDonald. Joins G ibbon Bank Wallace E. Rose, Jr., has been elect ed a vice president of the Exchange Bank of Gibbon, according to Charles E. Moyer, president. Mr. Rose has been a senior examiner with the Ne braska banking department the past Nebraska News four and one-half years. Prior to that he was doing auditing and inspection work for the state railway commis sion. Mr. Rose is a native of Kearney and is moving from there to Gibbon. > Cedar Rapids Change William Cox, who has been associ ated with the Cedar Rapids State Bank for several years, has retired from the bank to devote more time to his farm north of Belgrade. Edwin Cox, who has been attending school in Lincoln, will succeed him at the bank. D eposit Growth One of the most notable gains in de posits among Nebraska banks is that experienced by the Farmers State Bank at Rising City. Ten years ago, deposits were just over $914,000. When Herschel F. Garhan, president, pur chased control in late 1954, deposits were approximately $1,000,000 and dur ing one period of the 1956-57 drouth they were down to around $700,000. i 0 Deposits at the present time are $1,861,000, a gain of 80 per cent in the past seven years, Mr. Garhan reported to a N o r t h w e s t e r n B a n k e r representa tive last mouth. Other officers of the bank are C. A. Jaenike, cashier; Roseletta A. Garhan, vice president, and Donald L. Ellison, Luella Fish and Thelma Jones, assistant cashiers. Mr. Ellison operates the insurance depart ment that was organized a year ago. Elected Directors Lee D. Housewright, Jr., has been elected to the board of directors of the Fremont National Bank, filling the va cancy created by the resignation of Mrs. Catherine D. Angle. Mr. House wright, 39, is general manager in Fre mont of the Geo. A. Hormel & Com pany plant. KAN SAS a m H osp itality Hotel * Downtown — Heart of Theatre, Shopping and Business District * 10 Minutes from Airport, Railroad » 350 A ir Conditioned Rooms * Garage N ext Door-24 Hr. Service * Year Round Swimming • Home of the ”A thIetics‘'-Magor League Baseball , 87 F rom the w o rld In v e n to ry o f g re e t ideas “ Good will is the favor or advantage a businessman beyond the what be sells!’ ,.. Webster A good idea is worth remembering—and using. St. Paul Terminal’s Preferred Warehouse Receipts provide the means for convert ing inventories into prime collateral for secured loans. Inventory can be the key to supplying an additional service to many of your best customers—beyond open line limits. Call your nearest St. Paul Terminal Ware house for full details. ST. PAU L T E R M IN A L W AREHO USE C O M P A N Y O ffic e s in p r in c ip a l c itie s 4 2 5 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis East 8th Street • St. P a u l , N o rth w e s te rn Minnesota B a n k e r, S e p t e m b e r , 1961 88 i t Pays to H ave an Effective Connection W hen kicking off a new business campaign effective — or trying fo r the “ extra point” in main ence, the bankers o f Iowa have foun d that taining present customer relationships, you Bankers Trust Company is a highly effec m ake greater headway when you have an tive hanking connection in Des M oines. connection. From long C orrespondent Bank D epartm ent CYRUS D. KIRK HOMER R. JENSEN Bankers Trust Company The Des Moines Bank fo r Y O U Member: Federal Deposit Insurance Corporation • Federal Reserve System N o rth w e s te rn Banker, S e p te m b e r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 experi 89 State Bank, Fort Dodge. 3:30 5:30 Iow a Room. Re marks, Ted J. Welch, member of installment loan committee, IBA; member of ABA install ment credit committee, and president, Pe o pl e s Bank & Trust Company, Cedar Rapids. 7:30 Address — “The Automobile Dealer’s Dilemma,” John L. Gib son, senior vice president, Re public National Bank, Dallas, Tex. 6:30 N E W S RALPH EASTBURN FRANK WARNER President Secretary Adjournment. Informal Get-together — Arbor Fairfield Des Moines Banquet—Orchard Room. Top Speakers for Septem ber Installm ent Loan Conference HE 7th annual Conference on In stallment Lending, sponsored by the installment loan committee of the Iowa Bankers Association, is sched uled for September 10, 11 and 12 at the Hotel Kirkwood in Des Moines. U. Wendell Lowe, conference chair man and cashier, Boone State Bank & Trust Company, Boone, has announced the following program: T Sunday, September 10 P.M. 3:00 Registration—Main Floor, Hotel Kirkwood (Pioneer Rooms.) 5:30 6:30 A.M. 8:00 9:15 Get-together—Arbor Room. Buffet Supper—Orchard Room. Monday, September It Registration— Pioneer Rooms. Call to Order—Pioneer Rooms, U. Wendell Lowe, presiding. 9:30 Address — “Various Phases of Sales Promotion That Can Be Used to Increase the Business of Your Member Banks,” Gene McGreevy, d i v i s i o n manager, major appliances and television, Crescent Electric Supply Com pany, Davenport, Iowa. A. J. F R IG A A R D T. J. W E L C H https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10:15 Coffee Break—Pioneer Rooms. 10:30 Address — “Quality First and Quantity Second,” Marvin R. Werve, vice president, Omaha National Bank, Omaha. 11:45 Recess. 12:00 Luncheon—Orchard Room. P.M. 12:30 Remarks and Introductions — Ralph Eastburn, president, Iowa Bankers Association; president, Iowa State Bank & Trust Com pany, Fairfield. Address — “A S no w ba ll of Checks,” Arthur Frigaard, rep resentati ve, Federal Reserve Bank, Chicago. 2:00 Remarks— Collin W. Fritz, vice chairman, I ns t al lm e n t Loan Committee; vice president and manager, installment loan de partment, Jasper County Sav ings Bank, Newton. Panel Discussion — “Miscellane ous Questions on Acquisition and Servicing of Direct and In direct Installment Loans,” Wil lard D. King, vice president, D a v e n p o r t Bank and Trust Company, Davenport, modera tor. Panel members: Douglas S. Grinde, assistant cashier, Peo ples Bank & Trust Company, Cedar Rapids; W. B. Griffin, Jr., vice president, Iowa State Bank & Trust Company, Fairfield; George J. Buser, Jr., executive vice president, Plaza State Bank, Des Moines; Blaine S. Fox, in charge of the install ment loan department, The 9:00 Adjournment. Tuesday, September 12 8:00 Registration—Pioneer Rooms. 9:15 Remarks—Charles R. Clift, vice president, installment loan de partment, Iowa-Des Moines Na tional Bank, Des Moines, and member, installment loan com mittee, IBA. Address — “The A u t o m o b i l e Dealer—Today and Tomorrow,” Charles A. Gage, vice president, Northwestern National Bank, Minneapolis. 10:15 Coffee Break—Pioneer Rooms. 10:30 Address—“ Installment Lending and Collection Techniques with Reference to Legal Action and Repossession,” William S. Blatt, attorney, Chicago, 111. 11:30 11:45 New or Unfinished Business. Adjournment. Joins Grundy Center Bank Eldon Hoppenworth, formerly of Tripoli, Iowa, has been employed by the Farmers Savings Bank at Grundy Center, according to A. V. Dieken, president. Mr. Hoppenworth succeeds Gaylord Worden who has been farm representative for the bank the past 13 months. Mr. Worden resigned to accept a position as cashier of the Rushford State Bank at Rushford, Minn. Mr. Hoppenworth attended Iowa State College and the State College of Iowa. Farm Forum a Success R. L. Jipson, president of the First National Bank of Oelwein, reports there were approximately 700 present at the Farm Forum sponsored last month by the bank. Attendance at this important annual affair continues to climb. Allan B. Kline, former pres ident of the Iowa Farm Bureau and the American Farm Bureau Federa tions, spoke at the meeting and gave the outlook on the dairy and feeder cattle industries. He also spoke of in ternational affairs. N orth w e ste rn B a n k e r, S e p t e m b e r , 1961 90 Iowa News Central National O ffres Its A utom ation to Correspondents COMPLETE automation service A is being offered to its correspond ent banks by the Central National Bank and Trust Company of Des Moines. According to E. F. Buckley, presi dent, and H. C. Winder, vice president and cashier, correspondents will re ceive the benefits of automation with out having to invest in a computer or electronic sorter. Mr. Winder has been in charge of the bank’s planning for automation. The automation service is the result of a five-year study by Central Na tional. The bank’s transition to elec tronics has been gradual, and the Cen tral National system is composed of individual machine units linked to gether to form a complete automated system. The system extends from the original imprinting of checks through electronic sorting, then creation of a punched paper tape by a computer, and ends with the posting of accounts on fully automated Post-Tronic book keeping machines. Mr. Winder said the automation service is an outgrowth of Central Na tional’s own system. “W e are proud to have a banking ‘first’ for our cor respondents,” he said, “and we are also glad to be able to offer a practical service. Moreover, the Central Nation al system is designed around the ABA’c MICR program.” H o a v Automation Works The Central National system is com prehensive, but in outline form works like this: 1. Central National will electronical ly sort into numercial sequence all checks going out in the daily cash let ter to a bank, as soon as a sufficient number of incoming items are encoded in magnetic ink with customer ac count numbers. 2. After the close of business each day, correspondent banks may deliver all encoded checks and deposit tickets to the Central National “automation center.” Central National will sort the items, prepare a printed list of all en tries, and create a punched paper tape for automatic posting of accounts on the correspondent’s own premises. 3. The sorted items, the printed list, and the punched paper tape will be returned to the correspondent the fol lowing morning. Mr. Winder pointed out that full automation of Post-Tronic bookkeep ing equipment was made possible by the development of an electronic tape reader and an automatic ledger feeder. When coupled to a Post-Tronic Ma chine the tape reader actuates the ma chine by reading information encoded in punched holes, and the ledger feeder inserts statement-ledger forms in the machine automatically. The result is a one-run, electronically controlled sys tem that produces conventional rec ords for the depositor and the bank. System Is Flexible DAILY OPERATION of its cheek sorter-reader was begun last month by Central Na tional B&T immediately after delivery from the manufacturer, Pitney Bowes National Cash Register. Familiarizing themselves with machine, which will process 750 checks per minute, are (from le ft): Harold C. Winder, v.p. & cash.; Roger Hicks, transit mgr., and Norman Wilson, asst, transit mgr. A c o m p le te , tim e te s te d , p e r fo r m a n c e g u a r a n t e e d o u tfit For A u c tio n Sale Clerks COMBINES ALL THE FEATURES YOU DEMAND Receipts for Each Buyer * * Comba+s Skip Buyers No A dditional Listing • • Speeds Up Settling No Posting of Accounts • • Buyers Like It Absolutely the only o u tfit on the market combining all these features— sold on a money back guarantee. BLACK SALE SYSTEM ( F o r m e r ly B lock M tg . C o m p a n y I Fullerton, Nebraska W r i t e Us f o r S a m p l e S h e e ts a n d I n f o r m a t i o n N o r t h w e s te r n B anker, S epte m be r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 Electronic sorting at Central Nation al (on a Pitney-Bowes National sorter) is governed by a computer (a National 310). The operating program of the computer may be changed by addition al instructions, thus enabling the bank to satisfy any individual bank’s re quirements. Mr. Winder explained that if a cor respondent bank preferred to retain original deposit tickets, the Central National service would only apply to OFFERS AUTOMATION . . . (Turn to page 92, please) 91 No. 9 in a Series 1940 Packard Owners: Dr. and Mrs. Robert P. Robinson This 1940 Packard convertible was one of the first cars to feature the “No-man” top . . . which raised and low ered automatically. Although Packard produced only a limited number of these convertibles, this style of top was destined to achieve great popularity in the industry. When this Packard was new, the Valley Bank had already been a part of Iowa Banking history for better than twothirds of a century . . . with progres sive forward-looking service to banks throughout the state. Hasans A N D T R U S T W alnut at Fourth C O M P A N Y Des Moines, Iowa F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rthw estern B a n k e r, S e p t e m b e r , 1961 92 Io w a N ew s T oy N ational A d vert isiny Hots F ree R ide—R y Ralloonl HEN Ronald G. Will, assistant W cashier of the Toy National Bank in Sioux City, released a helium filled balloon on July 8 during formal open ing ceremonies of the bank’s new drive-in facilities, his enthusiastic act had far-reaching effects. In fact, it’s effect was felt two states away! The toy balloon was one of many given to children during the two-day event. Mr. Will attached his business card to one and released it. The bal loon soared out of sight, drifting south. On July 17 he received the following letter: “ Dear Mr. W ill: “ On the m orning o f July 13, we found a bal loon in our cotton field. It was either an orange or faded red balloon with an advertisem ent fo r the Toy N ational Bank, Sioux City, Iowa. “ Attached to this balloon by a strin g was a business card. F rom this card we got your name and learned that you were the assistant cashier 39th Street CHICAGO UNION STO C K YA RD S N HL . ..ii □ P A C K IN G ^ ~| PLANTS “ I EXCHANGE i____ i BUILDING 6 > hi i____ i < -" R 1 “O ] LIVESTOCK i— i PENS L 1 ij ■ 1 Cñ TJ ® *» to 0 1 47th Street Drovers’ Location makes Immediate Credit possible on livestock p ro ceed s... The Drovers National Bank is a direct member of the C h icago C learin g House Association and the Federal Reserve System. You will note, from the above Yards diagram, that Drovers is ideally situated to serve your farmer customers more promptly. Our proximity to the commission firms, located in the Exchange Build ing, enables us to process livestock returns as fast as the stock is sold. To make sure your livestock customers receive this fast Drovers service, have them fill out a Drovers shippers order. We’ll gladly send you a supply upon request. Friendly service to Livestock Producers fo r more than 75 years Continuous service to correspondent banks since February 12, 1883 ' S&Drovers Banks UNION STOCK YARDS, CHICAGO 9, ILLINOIS MEMBERS, FEDERAL DEPOSIT INSURANCE CORPORATION N o rthw estern B a n k e r, S e p t e m b e r , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 at the bank. Since we have no other address, we will address this letter to the T oy N ational Bank, in care o f you. “ A lthough there is no other logical explanation fo r the appearance o f the balloon here at this tim e and place, we would like your confirm ation o f this almost-unbelievable thing which has ap parently happened. In other words, did you ac tually set this balloon loose in Sioux C ity ? And, if so, when ? “ The man who found the balloon was m y fa ther, Leon Brawner, a farm er o f P ollard, A rkan sas. “ The balloon was found about 13 m iles north west o f P iggott, A rkansas, or about tw o m iles south o f the A rkansas-M issouri state line. “ Please w rite us soon and tell us m ore about this balloon. Yours truly, Leroy B raw ner” Mr. Will promptly wrote Mr. Brawn er assuring him that the balloon A v a s released in Sioux City on July 8, five days prior to the time it was found. Nobody knows how high the balloon went or if it even approached an outer space orbit, but a look at the map shows the advertising message of the Toy National got lots of mileage in this—nearly 600 miles worth!—End. Announces A B A Candidacy A prominent northwest Iowa bank er, John B. Keeline, president of the Central Trust and Savings Bank, Cher okee, has announced his candidacy for the position of an executive council man of the Amer ican Bankers As s o c i a t i on f ro m Iowa. The election will take place at the 75th annual con v e n t i o n of the Iowa Bankers As sociation, to be J. B. K E E L IN E h e l d in Des Moines, October 29-November 1, to fill the position now held by Joseph G. Knock, president, Iowa State Savings Bank, Creston, who will be completing his three-year term. Mr. Keeline served as president of the Iowa Bankers Association in 195758, and as vice president and treasurer in 1954-55. He has served two years as state vice president of the ABA; held the position of regional vice pres ident of the ABA, and is currently chairman of the ABA organizing com mittee in Iowa. He is an active member of several Cherokee civic groups, and also presi dent of the Ruthven State Bank. OFFERS A U T O M A T IO N . . . (Continued from page 90) encoded checks. However, the elec tronic system can handle encoded sub stitute documents as easily as the orig inal deposit tickets, he said. Only the account number and amount of the deposit would appear on the substitute document, thus keeping the informa- Iowa News tion confidential in the correspondent bank. Redesign of Checks In keeping with the program of the ABA and the Federal Reserve Central National is urging that all banks re design their checks and deposit tick ets to conform to MICR specifications. Other individuals who helped work out Central National’s concept of shar ing equipment were Jack Parmenter, manager of the bookkeeping depart ment; Dewey P. Tullis, manager of the proof department, and Roger Hicks, manager of the transit department, and his assistant manager, Norman Wilson. These four men attended a two-week training course at NCR headquarters in Dayton to learn how to program the computer and operate the new equipment. Booklets outlining technical infor mation for redesigning checks and de posit tickets may be obtained from the Bank Management Commission of the American Bankers Association, 12 East 36th Street, New York 16, N. Y. Centra] National is offering technical advice and assistance to its corre spondents. Hole-In-One Proving that bankers excel at golf as well as figuring interest, E. A. Kenny, vice president and cashier of the First National Bank, Sioux City, fired a hole-in-one on the Sioux City Country Club’s 157-yard number six. Witnessing the fete were Clyde McEntyre of DeLuxe Check Printers, Dick Taylor of the First National, and Mal colm Freeland of the N o r t h w e s t e r n Opens Estherville Office Knobbe, Gallagaher & Company, certified public ac counting firm of Des Moines, has opened an office in the Grand Theter B u i ld i n g in Estherville, Iowa. Gene W. Ringsdorf, C.P.A., will be the r es i de nt manager. P a r t ners in the Des Moines firm are C. B. Knobbe, Leonard W. Gallagher, Edward F. Volberding and Gerald J. Wadsworth. Elgin Bank R em odeling G. J. Mosby, executive vice presi dent, Elgin State Bank of Elgin, an nounces that remodeling work on the entire bank is expected to be com pleted some time early in October. The contract was let to Spencer Mulford of Oelwein. New D irector at Princeton Mrs. Lois Suiter O’Malley, Daven port, has been elected a director of the Farmers Savings Bank at Princeton. She is a sister of Glen H. Suiter, exec utive vice president of the bank, and takes the place on the board left va cant by the death of their mother, Mrs. Z. G. Suiter, last May. Mrs. Suiter had been a director since the death of her husband in 1948. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B anker. Extended Banking H ours The Iowa State Savings Bank in Knoxville recently expanded its bank ing hours by announcing Friday night 93 banking hours from 6:00 to 8:00 p.m. The bank will continue to be open from 9:30 a.m. to 3:00 p.m. Monday through Friday and 9:30 a.m. to 12:00 noon on Saturday. Dr. Dexter H. Hake, a practicing physician in Knoxville for seven years, has been elected a member of the Iowa State Savings board of directors. W ith Cedar Falls Bank Rodney L. Jensen, 33, has joined the staff of the First National Bank in Cedar Falls as manager of the install ment loan department, according to Vivian Johnson, president. In addi tion, Clarence Iserman, cashier, has also been elected vice president. Just o Few Steps Away . . . The newly enlarged Sioux Car Parking Garage is just a few steps from the bank. Experienced attendants handle your car quickly and safely. So when you come to the Security . . . just drive in to the Sioux Car Park Garage at Sev enth and Pierce Streets and tell the attendant you are going to the bank. Your ticket will he stamped in the bank for free parking. Security National Bank of Sioux City Member of Federal Deposit Insurance C orporation N o rth w e s te rn B a n k e r, S e p t e m b e r , 1961 94 Io w a N ew s Plans Cedar IStipiils D rive- Thron ifh I nit N A TIO N A L B A N K ’S proposed new drivethrough banking and parking facilities. Exterior view is at left. Floor plan at right shows lay-out of ground level. Upper M ERCH ANT’ S OHN T. HAMILTON, president of the Merchants National Bank, Ce dar Rapids, has announced completion of the bank’s plans for new drivethrough banking and parking facilities to be located in the recently cleared area on Second Avenue and Third Street, directly east across from the present structure. Construction is ex pected to start this year. J M e m b e r stories will be used for parking. An overhead enclosed passage will cross Third Street, connecting the new building with the third floor elevator lobby of the present bank building. Designed by Brown & Healy, archi tects, plans call for construction of six drive-through teller booths. Each booth, constructed of colorful ceramic tile and bullet proof glass, will be lo cated on its own cement island. Each booth will have an emergency exit for the teller, should he need to gain direct access to the drive. But the normal code of entering and leav f d i c a n d f * s ing the booth will be by a spiral stair way from the booth to the basement of the five story building housing the drive-through teller booths. The basement of the new building, according to Mr. Hamilton, will have a special security area as its focal point. This will include the loading and un loading area for armored vehicles that transport currency to and from the bank, and a special room for the bank tellers who handle this currency. Com pletely enclosed with a wall of bullet proof glass, this area will be accessible only through a special security pas sage, and only qualified employees will be admitted to the area. This part of the bank will be connected with the vault area of the main bank structure by a conveyor system running under Third Street. Other areas of the basement will in clude an employee lounge, employee and public rest rooms, record storage space and storage space for bank staff cars. Another area of the basement is being set aside for possible use as an air raid shelter. The face of the build ing on the first floor will be construct ed almost entirely of glass, and will be recessed eight feet to provide a cov ered walking area along the entire Third Street side and almost the en tire Second Avenue side of the build ing. This floor will contain walk-up banking facilities. Two areas of the first floor, totaling 5,300 square feet, provide room for fu ture expansion of bank facilities and YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS --- ----------------- F. E. DAVENPORT & CO. OMAHA N ofor r t h FRASER w e s t e r n B a n k e r, S e p t e m b e r , 1961 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fowa may be available at this time for rent. The entire first floor and basement will be air conditioned. The enclosed portion of the second floor and all upper floors will be used for parking facilities. Each floor will be accessible by a spirial drive and customers will be able to park their own cars. There will be ample space for bank patrons as well as permanent parking for tenants of the main bank building. The predominant architectural ele ment of the upper stories will be the exterior covering of gold-colored alu minum louvers. The space between these louvers will be closed with per forated aluminum, designed to reflect the heat of the sun and prevent rain or snow getting into the building. The ramp floors of the parking facilities will be heated with radiant heat to keep these areas free of ice or slush. The masonry section of the new building will be constructed of glazed brick, and will house the elevator and stairway connecting all floors. A unique feature of this new con struction will be an overhead enclosed passage crossing Third Street, connect ing the new building with the third floor elevator lobby of the present bank building. This will permit foot traffic between the buildings. New President at Fostoria Wayne J. Simington has been elect ed president of the Farmers Savings Bank at Fostoria following the retire ment of H. A. O’Farrell, who sold his interest in the bank. Mr. Siming ton has been a director of the bank for 13 years and h a s b e e n v ic e p re s i d e n t since 1950. He will as sume an ac ti ve role in manage ment of the bank, but will continue to operate his 400acre livestock and grain farm. w. j . s i m i n g t o n 1 b b e B e v in g succeeds him as vice president. Dale Tatman will continue as cashier. Os car Schmid was elected to fill the va cancy on the board of directors. Mr. O’Farrell had served the Fos toria bank for 33 years, 23 as cashier and the past 10 as president. 95 News HAWKEYED! W ill Travel Eastern Iowa W. F. (Walt) Schlenker, Davenport, Iowa, joined the sales force of the United States Check Book Company, Omaha, Nebraska, on August 1, and’ will represent the firm in portions of I l l i n o i s and eastern Iowa. Mr. S ch l en k er has been active in this same terri tory for a number of y e a r s , and prior to his sellw. F. S C H L E N K E R . mg career, was associated with Davenport newspapers in the advertising department, and prior to this was a Boy Scout execu tive serving in the Davenport area. Assessment Against Banks Iowa State Treasurer M. L. Abrahamson has announced that an assess ment of $63,288.98 will be made against banks in Iowa which have public funds on deposit. The assessment will be made on the basis of about 26 cents per $1,000 of public funds on deposit as of June 30, 1961, the date of the mid-year state ment call. The money is needed to bring the state sinking fund back up to $100,000 minimum required by law. The fund, which contained about $115,000, was reduced to the current figure of $36,711.02 as a result of the $2 million em bezzlement by Mrs. Burnice Geiger which closed the Sheldon National Bank earlier this year. Mr. Abrahamson said he paid the Sheldon Community School District about $71,340.70 and O’Brien County $72,102.60 for duns lost in the embez- "Strong frien d o f the Mp Independent Banker! MAX ROY, La Salle National Vice President, has a hawk’s eye when it comes to Iowa and Iowa farming. He also is hawkeyed about finding ways and means to help La Salle’s Iowa correspondents. He’ll act fast and right on the spot to serve you. Why not get the facts from Max. He lives right nearby in Iowa City, but he makes his headquarters at La Salle National Bank, 135 S. La Salle Street, Chicago 90, Illinois. STate 2-5200. Member FDIC. Com plete Trust Services. FEderd 3-5411 MARQUETTE O F M IN N E A P O L IS a t / tfoa ou tiC ti, EMBER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL DEPOSIT IN SU R AN C E CORPORATION N o rthw estern B a n k e r, S e p t e m b e r , 1961 96 Io w a News Rem odeling Com pleted at Storm I^alm MODERN STRUCTURE which incorporates the latest in banking facilities and cus tomer convenience has been opened by the Citizens First National Bank, Storm Lake. OFFICERS SECTION of the new Citizens First National Bank building is shown at left. George J. Schaller, chmn., is seated in foreground. Harry Schaller, pres., is standing in front of his office at rear. Shown at right is spacious lobby. The bank has zlement, a total of $143,443.30. The sinking fund received $64,549.49 when the bank’s assets were liquidated. The sinking fund is used to reim burse public bodies which lose their funds through bank failures. This is the first time in more than 20 years that banks have been asked to replen ish the fund. Assessments will be collected by county treasurers and forwarded to a separate installment loan department and a “ Drive Through Auto Lobby.” More than 500 cars per week are using the new Mosler drive-in window. Interior fixtures were provided by Jaeger Mfg. Co., Des Moines. the state treasurer’s office. Figures will vary considerably, but will be about $35-$40 for the average size bank. New Interior at Ridgeway Extensive remodeling of the interior of the Farmers State Bank at Ridge way has been completed, it was re ported last month by R. M. McQueen, jnvestors vice president and cashier. The proj ect consists of all new teller counters, a lowered block tile ceiling together with a new lighting system, matched flooring, walls paneled with mahogany wood finish, and matching new office equipment. In addition, glass double doors were installed in the newly en closed entryway. The Farmers State Bank has total assets of $1,275,000 and was organized ^Insuranc CEDAR RAPIDS Serving Iowa Banks with Competitive CREDIT LIFE AND DISABILITY INSURANCE A wholly owned subsidiary of the 11,000 stockholders of Life Investors of Iowa Provide Your Customers with Credit Life insurance Through the Company They Own N o rth w e s te rn B a n k e r, S e p t e m b e r , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1961 HOWARD E, SHEARY 3924 74th Street Des Moines, Iowa T. P. (TOMMY) THOMSEN 1030 Merchants N atl. Bldg, Cedar Rapids, Iowa 97 C en tra l N a tion a l Convert.s A ll T ru st O p era tion s to H IM IBM Data Processing System in A Nstalled by the Central National for corporate stock transfer and divi dend disbursing accounting. Bank and Trust Company of Des Moines is providing faster, more de tailed and highly accurate reports to the beneficiaries concerning all trust transactions. Central National, one of Iowa’s larg est banks, becomes the first firm in the state of Iowa to install an IBM system exclusively for trust account ing. According to E. F. Buckley, pres ident of the bank, the IBM Unit Rec ord equipment will expedite the anal yses of trust assets, aid in the prepa ration of income tax information, and speed up the process of taking trial balances. Previously, it took three full days to run these trials; however, with the new IBM equipment the pro cedure will be reduced to one hour. In addition to personal trust ac counting, the equipment will be used Central National’s Vice President and Trust Officer Noel T. Robinson is chairman of the American Bankers Association Trust Committee on Op erations. Trust accounting at Central Nation al involves maintaining separate in come and principal cash accounting for both income tax purposes and dis tribution to beneficiaries together with accurate control of all securities held by each trust. All reports in the estate and trust departments can be prepared at the rate of 9,000 lines per hour. in 1932. The only remaining member of the original hoard of directors is C. T. Trytten, who at 90 years of age still attends regularly and is an active participant in all board meetings. He is also vice president inactive. Iowa from California where he has been a credit analyst with United Cal ifornia Bank since graduation. Dur ing his schools years he worked for Security State Bank in Hartley and the Iowa State Bank & Trust Com pany in Iowa City. Golden W ed d in g Anniversary Mr. and Mrs. Ray Moehn celebrated their golden wedding anniversary in Carroll last month. Mr. Moehn is president of the Com mercial Savings Bank in Carroll, and his son, Robert, is a vice president of the bank. Another son, Dr. John Moehn, resides in Minneapolis. Joins Spencer Bank John Rahn, a 1959 graduate of the State University of Iowa college of business administration, has joined the staff of the Clay County National Bank of Spencer. He returned to C r E A .R . M ESH EM JACK SMITH, commercial loan Vice President, is a native Iowan who knows how to m esh your commercial loan gears to higher and more prosperous speeds. If you want to go places with com mercial loans why not call Jack at La Salle National Bank, 135 So. La Salle St., Chicago 90, Illi nois. The phone is STate 2-5200. Member F D IC . Complete Trust Services. The bank previously used IBM equipment for account reconciliation. It expects to greatly improve services to customers with the data processing system which was installed August 1. —End. Plan Open H ouse Officials of Bettendorf Bank and Trust Company are planning an open house this month so Bettendorf resi dents may view the major remodeling that has been completed at the bank. The loan department has been moved to the west side of the lobby where new desks, carpeting and lighting have been installed. Teller cages have been enlarged and the bookkeeping de partment has been transferred to the Plaza building. A lounge for employ ees, which may also be used for civic meetings, also has been added. S$SL THE THOS. D. MURPHY CO. LINE EFFECTIVE sales promotion media E x clu siv e a rt a n d s p e cia liz e d c a le n d a rs , m a p s , b ooklets, b u sin ess a n d s o c ia l g re e tin g s, w ood a n d m e c h a n ic a l p e n cils, b a ll points, p e n s, a lso a n e la b o ra te v a rie ty of s p e c ia lty item s. RED O A K , IO W A "The Birthplace of the Art Calendar Industry" https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis No rthwestern Banker, September, 1961 98 Moines National Bank, is the instruc tor. Principles of Bank Operations—This is a pre-standard course and will meet from 4 to 7 p.m. at the Central Na tional Bank & Trust Company lunch room. A lion E. McGlothlen, assistant vice president, Valley Bank and Trust Company, is the instructor. September 25 — Monthly A.I.B. Speech Club meeting, 6:15 in Younkers Tea Room. Robert W. Goodson, as sistant vice president, Northwest Des Moines National Bank, is chairman. WO new directors have been elect ed to the board of the Central Na T tional Bank Trust Company. They & are James F. Connaughton of South Bend, Ind., president and director of Bell Intercontinental Corporation, and George I). O’Neill, New York City, a director and chairman of the execu- J. FI. C ONNA UGHT ON G. D. O ’ NEILL tive committee of Bell Intercontinen tal, which acquired controlling interest in the bank July 26. Robert K. Goodwin, chairman of the board, said that William J. Goodwin, Sr., a director for the past 25 years, and E. A. Kimball, director for 13 years, have resigned from the board and have been elected honorary mem bers of the board. * * * The Valley Bank and Trust Com pany cooperated with the Iowa Civil War Centennial Commission by fur nishing an exhibit for one of the com mission’s ten booths in the Horticul tural Building during the Iowa State Fair. The Valley displayed a large collection of old mechanical penny banks. These were early promotional devices for encouraging thrift in the younger set. The banks are all ani mated in some manner, or perform a trick of some kind, when a coin is in serted in the slot. As a contribution to the Centennial Civil War Year, the Valley Bank has re p ro d u c e d a little book called “Tramps and Triumphs” of the Second Iowa Infantry,” the eye-witness ac count by a foot soldier, John T. Bell. Northw estern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hitherto, the only known copy was in the State Department of History and Archives. The Valley has footnoted and illustrated the booklet with old engravings and wood cuts of the pe riod, and will glady mail a copy to Civil War buffs upon request. * * * Two assistant cashiers at the First Federal State Bank attended schools of banking last month. Kenneth G. Miller attended the South West School of Banking at Southern Methodist Uni versity, and Ardell Kurschinski at tended the School of Banking at the University of Wisconsin, Madison. * * Following is a schedule of A.I.B. ac tivities in Des Moines for September: August 30—Women’s bowling start ed at Val Lanes. A total of 12 fivewoman teams are participating. Mary Ellen Miller, Iowa State Bank, is chairman. September 6—Men’s bowling starts, also at Van Lanes, with 16 five-man teams competing. A. B. Dressier, as sistant cashier, Central National Bank & Trust Company, is chairman. September 11—Fall dinner-dance at the Wakonda Country Club. Guest speaker will be Jim Duncan, radio and television instructor at Drake Univer sity. Music will be supplied by Jack Cole and his orchestra. September 12—Course work begins. Three 14-week courses are being of fered. * * * Effective English—This is a pre standard course. It will meet from 4 to 7 p.m. in the Bankers Trust Com pany Lounge. Herbert Hantz, head of the English department at Tech High School, is the instructor. Investments — This is a graduate course and will meet from 4 to 7 p.m. at the Central National Bank & Trust Company lunchroom. Robert D. Eversman, security analyst, lowa-Des =t= * * Telephone number for the Bankers Trust Company has been changed to 283-2421. * * The annual picnic for employees of Bankers Trust Company, traditionally held at the home of J. W. Hubbell, board chairman, was forced by rain to move to the Cloud Room at the Mu nicipal Airport. BAIRD BOUDEWYNS M A NZ The program included dinner, danc ing and recognition of three 25-year employees, M. N. Baird, R. C. Boudewyns and J. E. Manz, Jr. * * * A special exhibition of paintings by the noted artist, Maria Zeitlmann, is being featured at the Valley Bank and Trust Company in Des Mines. Inter ested persons are cordially invited to view the exhibit from now through October 13. Miss Z eitlm a nn , born in West Amana, Iowa, has exhibited work for several years in both the Bismarck, N. D., Art Show and the Mandan Art Show. She has just returned from participating in the Grand Marais Art Colony. Edward Burchette, chairman of the bank’s board, is a trustee of the Edmundson Art Foundation, and the bank regularly exhibits paintings from the Des Moines Art Center. * * * Keith P. Eaton, assistant vice presi dent, and Florence Maples, savings teller, attended the Midwest Regional Chapter Leaders’ Conference of the American Institute of Banking in Hutchinson, Kan., recently. Both are with the Valley Bank and Trust Com pany, Des Moines. 99 tor Centra National! FIRST IN IOWA WITH NEW IBM "ELECTRONIC BRAIN" TRUST ACCOUNTING We have now accepted delivery of the new IBM electronic data processing machines for our Trust Department and what a difference they will make. Reports to bene ficiaries and income tax information will be available in a matter of a few days after the close of the calendar or fiscal year. The installation of our new IBM punch card electronic trust accounting system re flects the vigorous growth of Central Na tional’s Trust Department in recent years. From four Trust Department employees in 1942 we have grown to 34 today. And no doubt we will be adding more to our staff as the new IBM system enables us to serve more and more trust customers. T O W A ’ S F A V O R IT E CORRESPONDENT B A N K NATIONAL BANK and TRUST COMPANY Des Moines, Iowa 5th & Locust Mem ber Federal Deposit Insurance C orporation Northwestern Banker, Septem ber, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 100 Iowa News Anico service. . . 6005 S. Milwaukee W ay • Littleton, Colo. P. O . BOX 1 49 * H u n kers T ru st, A m erica n M u tu a l R en t IRAI t u m p ut e r •lain t fi/ OINING forces on the rental of data processing equipment has brought a high-speed, tape computer system within the reach of a neighbor ing bank and insurance company three to four years sooner than either could have justified it alone. By taking advantage of the fact that their buildings adjoin and their needs for computer time dovetail perfectly, Bankers Trust Company and Ameri can Mutual Life Insurance Company, Des Moines, are pioneering a unique concept which offers far-reaching po tential to small- and medium-sized firms. An IBM 1401/1412 system will be in stalled at the insurance firm, which will use it during the day to process its entire policy file and handle a wide range of applications derived from it. Then, at 5 p.m., bank personnel will take over the equipment and process demand deposit accounting and other jobs which are the result of the day’s business just ended. This is believed to be the first time that two firms in different industries will lease a computer cooperatively. The rental will be split between them on a time-used basis. It is expected that American Mutual Life will re quire the most time due to the volume of records it must process, based on 120,000 life insurance policies. Bank ers Trust will pay the entire rental for the IBM 1412 Reader-Sorter, which the insurance company will not need. J In the recent past, both firms have looked in the direction of advanced data processing equipment to: Improve customer service; Keep in the forefront of the trend to automation in their respective industries; Continue steady growth without requiring a “personnel explosion” ; Generally gain internal speed, ac curacy and efficiency. However, management of each firm has also looked beyond the immediate operational advantages of automated equipment, toward more far-reaching benefits in the field of scientific man agement. Investment analysis is an example. Now, by joining forces, they are able to achieve the machine capabilities both believe necessary. The installation, which will be op erational by early 1963, will include a 1401 Processing Unit; a 1402 Card Unit which reads 800 cards a minute and punches 250; a 1403 Printer, which operates up to 600 lines a minute; four 7330 Tape Units, each with a speed of 20,000 characters a second, and the 1412 Reader Sorter which can process 950 magnetic ink documents per min ute. “Our share-the-equipment plan of fers many advantages,” said Bankers Trust President S. C. Pidgeon, “not the least of these being the tremen dous savings in machine rental time.” Harry S. McConachie, president of AMES, IO W A Among other things . . .A N IC O has special facilities for admin istering your cred it insurance program . . . • prompt, unsurpassed service * sound, continuing growth Credit Insurance Division Dallas 5, Texas AMERICAN NATIONAL INSURANCE COMPANY of GALVESTON, TEXAS Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PART OF EQUIPMENT that will be operated jointly by Bankers Trust and American Mutual Life in their own electronic center is previewed by top executives of the two firms (from le ft): Russell B. Reynolds, exec, v.p., American Mutual; Scott C. Pidgeon, pres., and James W. Hubbell, climn., both of Bankers Trust, and Harry S. McConachie, pres., American Mutual. Iowa News 101 C h erok ee R em o d elin g C om p leted EXTERIOR photo of Central T&S of Cherokee shows use of brick, marble and glass. RIGHT—Board of directors in new meeting room (from left): George H. Pingery, v.p. & t.o.; Carl J. Goeb, v.p.; Mrs. John B. Keeline; John B. Keeline, pres., and John Heline. grand opening last month A TofTHE the remodeled offices of the I Central Trust and Savings Bank of Cherokee, customers found a complete ly different building than they have been accustomed to since the bank’s founding 30 years ago. The second floor of the old building was removed, the lobby has been redesigned to ground level and the exterior of the one-story structure completely refaced with light colored brick, granite and three ground to roof sections of glass windows. President John B. Keeline said an additional entrance has been provided for patrons using the insurance and installment loan departments outside of regular banking hours. A sidewalk teller window also has been installed for customer conven ience. Interior redesigning has placed all teller windows at ground level and two new teller windows have been added. Indirect lighting has been in stalled throughout the bank, as well as air conditioning. A recreation room with lunchroom facilities has been built in the basement area. Sidewalks around the building will be steam heated in winter months to keep them free of ice and snow. American Mutual L ife, d ecla red , “When you consider the conditions that exist at both firms relative to size, growth and need for high-speed data processing, the venture is a log ical step.” Bankers Trust, founded in 1917, is the third largest bank in Des Moines. It has resources and liabilities of $81,777,900. The new system will enable Bank ers Trust to sort the daily average of 18,000 checks, deposit slips and other items, process them, and update cus tomers’ accounts in about three hours. A daily trial balance will be pre- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pared on about 12,000 checking ac counts in just 30 minutes. Service charges on checking ac counts, now a month behind, will be handled on a current basis. The centralized accounting system possible with the 1401 will also handle the record-keeping on i ns ta l lm e n t loans, savings and trusts. Increased accuracy in each of these applications is regarded by the bank management as the biggest single ben efit. Another will be better knowledge of the customer, possible through auto matically-produced exception reports listing day-by-day fluctuations in indi vidual accounts, checks written against insufficient funds, etc. New customer services are expected to be a natural outgrowth of the sys tem, too. The computer will lighten the load on bank personnel to the point where additional bookkeeping services for customers may be pro vided, in keeping with the banking industry’s trend in that direction. Im proved services to c o r r e s p o n d e n t banks are also expected to result. Future benefits such as portfolio analysis and other phases of scientific IN CHICAGO enjoy the facilities of HAMILTON HOTEL in the Heart of the Loop 6.50 Sensible Rates fr o m $ | * N e w ly redecorated Fr e e T V . . . A ir-c o nditi on ed C re dit Card holders assured r ese rva tio n s during heavy co nvention periods if a d vanc e r ese rva tio n s are made • W R ITE FO R YO U R C R E D IT CARD FREE R e la x in th e q u ie t e le g a n c e o f y o u r in d iv id u a lly c re a te d l iv in g , s le e p in g ro om . H e a rt o f th e lo o p . W ith in w a lk in g d is ta n c e to S ta te S tre e t, th e f in a n c ia l d i s t r ic t , th e a tr e s , n ig h t c lu b s , re s ta u ra n ts . ON DEARBORN S T R E E T 1 between MADISON & MONROE ione jtAndolph 6-6100) rfprHnformation N o rth w e s tern Banker, S e p te m b e r, 196? 102 H a n kers WANT ADS a■ ir V N Rates 20 cents per word per insertion. Minimum: 10 words. NORTHWESTERN BANKER 306 15th St. Des Moines, Iowa POSITION WANTED S. U. I. Graduate, 34 years old, over 10 years general banking ex perience in $40,000,000 bank; de sires position as auditor or opera tions officer. Write Box M-10 c/o NORTHWESTERN BANKER, 306 Fifteenth Street, Des Moines 9, Iowa. POSITION WANTED Bank loan officer with experience in public relations, farm manage ment, and business development seeking position with opportunity in mid-western bank. Write Box TTX, c/o N O R T H W E S T E R N BANKER, 306 Fifteenth Street, Des Moines 9, Iowa. POSITION AVAILABLE Wanted ambitious young man with some electronic bookkeeping expe rience to assume full charge of bookkeeping department in one of the larger banks in Eastern South Dakota. Salary open. Write Box X-45, c/o N O R T H W E S T E R N BANKER, 306 Fifteenth Street, Des Moines 9, Iowa. BANK EXECUTIVES “ Leaders Choose Leaders" TOP M E N — A t every level know th a t C a d illa c has the w idest choice o f the best ava ila ble positions in the fie ld — positions banking th ro u g h o u t the nation w ith grow th organizations o ffering chal lenging work and to p earning p o te n tia l. LEADING BANKS — Be they large or small, know th a t C a d illa c 's 35 year repu ta tio n has been b u ilt on effe ctive c o n fi de n tia l service to the em ployer looking LAST MONTH the Merchants National Bank of Cedar Rapids demonstrated the IBM -S 1203 Unit Inscriber, which will be a part of the bank’s new data processing system. The equipment was put on display in the lobby and correspondent bankers were in vited to see the Inscriber and learn just how this particular piece of equipment pre pares documents for entry into the data processing system. In the photo above, Ray Oldham, IBM representative (left), explains the 1203 Unit Inscriber to Paul M. Shain, executive vice president of the Benton County Bank, Vinton, Iowa,, while Joe McAndrew, head of Merchants National Bank’s data processing center looks on. management will be the additional benefits. American Mutual Life, founded in 1897, has been a user of IBM equip ment for many years. Based in Des Moines, the firm operates in 19 states, including Hawaii. The company writes life policies only. Between 1953 and 1960, its insurance-in-force has more than doubled. As of June 30 of this year, the in-force figures was $370,963,000. Assets were $72,154,000, and sur plus, $4,900,000. Both Bankers Trust and American Mutual expect that their plans for ad ditional applications will eventually bring about the day when each firm will need its own computer installa tion. In the meantime, however, the two companies’ forward-looking approach to cooperative equipment rental will bring them some three to four years of benefits from data processing equip ment neither could now justify singly. -—Lind. Atlantic Bank Sold The Whitney Loan and Trust Com pany Bank of Atlantic has been sold to Walnut Groves Products Company, it was announced last month by Oscar Otto, president of the bank, and J. J. O’Connor, president of the feed manu facturing firm. Mr. Otto, who has been with the bank since 1915, will continue as president and other officers and di rectors will remain the same. Mr. O’Connor and M. D. Livengood, exec utive vice president of Walnut Grove Products, also will serve as directors. fo r the rig h t man. BOTH TOP MEN AN D LEADING BANKS — know th a t th e ir confidence is well placed w ith the nation's largest executive and professional placem ent service. Whatever your requirements contact us in absolute confidence without obligation ARVID D. JO H N S O N Office fo r H uxley The Slater State Bank of Slater has received approval from the Iowa de partment of banking and the FDIC to open an office in Huxley, which is four miles east. John Hendricks of Huxley has been elected assistant cashier and office manager. P erson a l C onsultant to the B anking F ield Cadillac Associates, Inc. 29 East Madison Bldg. Chicago 2, 111. Financial 6-9400 * W h e r e M o r e E x e c u tiv e s F ind T h eir P o si tion s Than A n yw h ere E ls e in th e W orld . Northwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ACORN Registers "Accepted Sale Registers by Bank Clerks Everywhere" For information write THE A C O R N PRINTING CO. Oakland, Iowa fowa News ff p en l i a i s e at MORE THAN" 1,100 persons registered for open house when the Farmers & Traders Savings Bank of Bancroft invited the public to tour the new building. The above pictures show the exterior and interior. Savings bonds and a number of mer chandise and one-dollar cash door prizes were awarded. The Loss Prevention Clinic A Loss Prevention Clinic will be held September 19 in Sioux City by the Siouxland Conference of NABAC, according to Malcolm Erickson, presi dent of the group and assistant cashier of the Live Stock National Bank. The clinic will start at 10 a.m. with headquarters at the Mayfair Hotel. An evening dinner is planned for the group. C. Harlan Hight, director of NABAC for District 6 and comptroller of the Northwest Security National Bank, Sioux Falls, has invited all officers and directors of banks in the area to at tend. Les Olson of the Toy National Bank will be chairman of the clinic. R eport on State Banks The June 30 report on the condition of state banks in Iowa shows consoli dated assets of the 567 state chartered banks as $2,267,329,404. This is a gain over the June 30, 1960, figure of $53,619,523, or 2.42 per cent. There were 565 state banks in the June 15, 1960, report. The abstract report was issued for the first six months as the final act of Joe H. Gronstal, superintendent of banks, who resigned as of that date to return to Carroll where he is presi dent of the Carroll County State Bank. The report shows total capital funds of state banks at mid-year were $228,204,382, representing 10.06 of total lia bilities. This is an increase of $11,958,113 or 5.53 per cent over the pre vious year. Total deposits of $2,028,828,757 were up $49,493,545 over June 15, 1960, a 2.50 gain. Municipal, state and federal gov ernment deposits were down more than $6.7 million, but time deposits in Iowa state banks were up $46,962,153 and demand deposits were up $9,260, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 103 B a n cro ft bank was organized 74 years ago and has been under the man agement of the Kennedy family for 50 years. Officers are: A. W. Kennedy, pres.; Wm. A. Kennedy, cash.; J. C. Kennedy, v.p., and Betty Becker and J. R. Kennedy, a,.c.’s. A number of bankers from surrounding towns also attended the open house. 947, a total gain of more than $56 mil lion. Loans were $1,070,168,382, an in crease of $23,947,825 or 2.29 per cent over the same date of 1960. Expansion at Marion W. N. Shellenbarger, president, Farmers State Bank at Marion, said last month that remodeling of the building adjacent to the bank should be completed in September and will provide for eight teller windows as well as an office for Vernon Brockman, cashier. All teller windows will then be at street level. The area previously occupied by the tellers will be used for offices. Purchases City Hall The First National Bank of Iowa City has purchased the present City Hall in Iowa City for $125,150. Clark Houghton, president, said the bank plans to expand its services by con structing drive-in accommodations and parking facilities on the site of the new purchase. Possession, is expected by January 1 when city offices are to be moved into the new administration building now under construction. Cedar Falls Construction Construction of a completely new building that will cost more than $250,000 has been announced by J. J. Kyhl, president of the Cedar Falls Trust and Savings Bank. Mr. Kyhl said con struction is expected to take 10 months with occupancy scheduled for some time during the summer of 1962. The new structure will be erected at Third and Washington Streets. The one story design features an imposing array of glass frontage, flat roof with modernistic, peaked roof sections for interior lighting, two drive-in teller windows, a slim time-temperature sign that will be placed atop the corner of the building, and the most modern vault facilities available. The building will be 66 by 100 feet with a full base ment housing a community room, em ployee lounge and kitchen. The pres ent building will be sold, Mr. Kyhl said. Establishes Scholarship Ronald L. Jensen, president of Life Investors of Iowa, last month an nounced establishment by that com pany of a medical scholarship through the University of Iowa. The annual scholarship grant will be known as The Life Investors of Iowa Scholar ship in Memory of Dr. Ralph E. Moe. The recipient of the scholarship will be named through the dean’s office at the State University and the award will be made on a scholarship basis. The same student may receive the scholarship grant in successive years by maintaining a high scholastic standing. This year’s recipient was to be named sometime during the month of August. Dr. Ralph H. Moe, founder and first president of Life Investors of Iowa and its principal subsidiary, Investors Life Insurance Company of Iowa, was a practicing physician in Griswold, Iowa. FP P R A Graduates William G. Kruse, assistant vice president of First National Bank, Du buque, and Thomas R. Smith, execu tive vice president of the First Na tional Bank of Perry, received certifi cates recently on completing their sec ond term at the School of Financial Public Relations at Northwestern Uni versity, Chicago. Mr. Kruse and Mr. Smith were the only Iowans in the graduating class of 47 Northwestern Banker, September, 1961 A A 104 The Bankers’ Market Place A Page Telling What’s New for Banks and Bankers Each month the Bankers’ Market Place will bring you listings of new products, specialty items, banking equipment, and gift items which will help you and your staff do a better job. This is the selection for this month. urroughs c o r p o r a t io n has integrated its Series I desk-size B computer with a 10-total typewriter ac counting machine to provide the only electronic business data processing O P E R A T O R C O N S O L E houses a 10-total typewriter accounting machine, printer. system in its price range with alpha numeric capability. The alphabetical feature eliminates the need for additional units to write descriptive information on accounting forms. A re-manufactured system, complete with the new 10-total type writer accounting machine, sells for $29,000 and rents for $1,200 monthly. eluxe check prin ters , D INC., has developed a series of six slide presentations designed to help both the banker and his custom ers better understand details con nected with adoption of the Magnetic Ink Character Recognition program. The series range from 16 to 25 color slides and presentation time varies from 20 to 30 minutes. The slides are ideal for showing to bank employee meetings, for group meetings with local printers, and for meetings with select groups of custom ers who would have an interest in the details of the MICR check imprinting. The six brief talks are titled (1) Introduction to MICR, (2) Check For mat for MICR, (3) Redesigning Checks for MICR, (4) Ordering Checks for MICR, (5) MICR Specifications, and (6) Printers’ Problems Under MICR. Sets of slides will be loaned upon re quest to banks. Write: DeLuxe Check Printers, Inc., Advertising Depart ment, 4435 West Belmont Avenue, Chi cago 41, 111. NEW series of animated televi sion spots selling bank services been produced by Advantage Films, 736 North Seward Street, Holly wood 38, Calif. The series of syndi cated television commercials urges customers to patronize banks in re gional markets throughout the coun try. With syndication, the developmental expense in creating television com mercials is distributed over many mar kets instead of being absorbed by a single sponsor, while still giving the effect of a custom made commercial. COMPLETE line of three-dimen A sional figures for Christmas dis plays is being manufactured by MoldCraft, Inc., 100 North Lake Street, Port Washington, Wis. Nativity scenes, an gel choirs, and other Christmas dis play items are described in detail in the firm’s catalogue which can be ob tained by request. NEW portable photocopier, about the size of an attache case, has been developed by the Anken Chemi cal and Film Corporation, 80 Fifth Avenue, New York City. Using this machine, clear and ac curate copies can be obtained at the reference locations, eliminating the ne cessity of removing important records for photocopying. A A has . . . A N EW DISPLAY EVERY DAY M r. Banker, are you w asting thousands of valuable ad vertising dollars? Banks th ro u g h out the country are making th e ir windows and lobbies pay extra dividends w ith TIM E LY EVENTS' a tte n tio n -g e ttin g fluorescent displays fe a tu rin g tim e, ba rom e tric pressure and outstanding newspictures. Custom de signed to blend w ith your decor and priced as low as $2.00 per week. W RITE: TIM ELY EVENTS, 236 N. Clark, C hicag o I, III. PRINTING . BOOK BINDING . BOOKS DIRECT MAIL ADVERTISING . INDEX CARDS . CHECKS . OFFICE FORMS Is your present farm b u lle tin preferred re ad ing to your farm customers? The Farm Pic tu re is and you can prove i t by asking them . C o n d u c t your own Preference Rating SUR VEY and you w ill be amazed. Bankers find th a t farm ers give The Picture a Preference R ating ranging from the low 70's to the high 80's. There are no "gim m icks." You c on duct the survey and judg e the results yourself. I DARE Y O U to ask your farm customer Earl F. Crouse, Editor, The Farm Picture D ept. 42, P.O. Box 221, U rbana, Illinois No rthwestern Banker, September, 1961 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SALES TESTED anim ated television spots selling bank services are available to your bank, even if you have a lim ited ad vertis ing bu dget. By syndicating these effective film s on a regional basis, trem endous sav ings are realized fo r the in d ivid u a l banks. D evelopm ent expense is spread over many markets instead o f being paid by one spon sor o f a single message. Yet, it lets your bank achieve the effe ct o f a custom-m ade com m ercial. For com plete details on how your bank can use effective TV com mercials w rite : A D V A N T A G E FILM SALES, IN C ., 736 N orth Seward Street, H ollyw ood 38, C a lif. # # ✓ This record growth indicates that bankers enjoy working with a firm that understands # • # $ 0 - banking (Central States has worked exclu sively through financial institutions for over 25 years.) It shows that bankers in sist on stability (Central States is among the select 2 0 % of all insurance firm s recommended by BEST’S). It demonstrates the growing opportunity for banks — your bank— in offering voluntary insurance pro tection to customers. Write, wire or phone us, collect, for complete details. Ce n t r a l S t a t e s H e a l t h & L if e C o. of Om ah a T. LESLIE KIZER, President CENTRAL STATES INSURANCE BUILDING HOWARD AT 18TH STREET • OMAHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pjrfijP'T" .1 D É N v/ E R ~ ; ........ W li E W ..... - - y o R K > S him Francisco 7 Just a hop, sk ip and ju m p to our M id -A m erica lo ca tio n ! Stick a pin in your U .S . m ap at D es M oines, and y o u ’ll find you can alm ost spin the m ap like a top. Y e s — we are located, happily, at the very heart o f M id-A m erica. W h ich can mean, for you, correspondent bank services always a little faster. A ctu ally, the Io w a -D es M oines N ational B ank is less than a day away from any m ajor city, coast to coast. So no m atter where your drafts are drawn, they can get to us in a hurry. A nd we keep our correspondent services operating at top speed, to m ove your business with all possible dispatch. W h y not stop in here, next tim e y o u ’re traveling— on vacation, or on business— and let us show you around the B ank. Y o u ’ll see some operations we think you will admire; and m ost likely you will get some ideas as to how we can serve you even better! JERRY NELSON GEO. E. HA R NA GE L BOB BUENNEK E BEN E IL DE RS JOHN HUNT V ic e P resid en t A ssista n t C ashier A ssista n t Cashier A ssista n t Cashier A ssista n t Cashier Io w a -De s M o i n e s Sixth and Walnut, Des M oines, Iowa • CHerry 3-1191 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (? Member Federal Deposit Insurance Corporation
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