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Federal Reserve Bank of St. Louis


Look into MNB's Safekeeping Services
you'll be surprised

Pleasantly surprised! □ In addition to simply pro­
tecting your securities, MNB will notify you when
your securities become due and provide advance
notice of important events (such as bond maturity
dates). We'll provide a list of your securities, and
if you like, we'll accept open orders to buy and

so many ways we can help you

sell securities, at given prices, as the market per­
mits. □ These MNB extras are no surprise to over
half of all Iowa bankers who are currently MNB
correspondents. We would like to have you join
them. Call our Correspondent Department or Bill
O'Toole in our Bond Department, 319-365-0411.


Federal Reserve Bank of St. Louis


For men who
make things happen
fa st...


Trust Northern to have the men
who get things done. These are
first-string men . . . men who can
make lending decisions.
T h e y also h ave a v a riety o f
ways to help you get new business
. . . invest short term funds profit­
ably . . . provide portfolio assist­
ance . . . and help with operations
analysis, speedy check collections,
or customer loan problems.
Supporting them are the special­
ists back at the Bank . . . portfolio
tax specialists who will work closely
with you to increase your after-tax


income . . . automation specialists
who will help you use highly tech­
nical equipment . . . and many
others. All are available to find the
best solutions for you.
Take advantage of our action
men. Call or write Mr. N. Hall
Layman, V ice President, Corre­
spondent Banking Department.




Chicago 60690 • Financial 6-5500 • Member F.D.I.C.
No. 1118 N orthw estern B anker is published five tim es a month by the N orthw estern Banker Company, 306 Fifteenth Street, Des M oines, Iow a 50309.
Subscriptions 50c per copy, $6 per year. Second class postage paid at Des M oines, Iowa. Address all m ail (subscriptions, change o f address, F orm 3579,
m anuscripts, m ail item s) to above address.
Federal Reserve Bank of St. Louis

the Picasso
and I
you to
(and the ABA convention).

as you see, there's an
elegant view of Chicago’s
famed Picasso from my office
window, and I cordially invite you to enjoy it. It's open house at
Scarborough during the convention. We’ll have folks here to welcome you and show you
our brand new premises. Our counselors will be available if you have any insurance problems,
and if you’re downright insistent, we’ll consent to show you what’s new and knowledgeable
in bank insurance during this interesting period of higher risks and exposure.


the bank insurance people
Northwest ern Banker, Septe m ber, 1968
Federal Reserve Bank of St. Louis

33 North Dearborn Street • Chicago, Illinois 60602


L a S a lle to F o r m
H o ld in g C o m p a a g
MEIDELL, chairman of
the board, and Milton F. Darr,
* Jr., president, announced recently
that La Salle National Bank of Chi­
cago has called a special meeting of
shareholders for Wednesday, Septem­
ber 18, for the purpose of voting on
the issuance of an additional $3,000,000 principal amount of subordinated
debentures, the retirement of the outt standing issue of preferred stock with
the proceeds from the sales thereof,
and approval of the board’s action in
entering into a contract for forming
• a one-bank holding company.
Mr. Meidell and Mr. Darr stated
that “the proposal will result in addi­
tional strength and flexibility to en­
able us to improve our present serv3 ices, to add new services and to con­
tinue to contribute to the economic
growth of the city of Chicago and oth­
er areas presently served by the bank.”
Initially, the only investment of the
holding company will be stock of La
Salle National Bank, and no other
investments are contemplated at this

Acquires Bank of Jamestown

Oldest Financial Journal West of the Mississippi

for your S E P T E M B E R , 1968, reading
74th Year

No. 1118


Across the Desk from the Publisher


The Cattle Outlook— A


Factors That Affect Bank Stocks Today— Lewis E. Davids


94th Annual American Bankers Convention Program


Your Hosts In Chicago

N orth w estern



Meet Willis W. Alexander


Reserve Reform and the Banking Structure—
Willis W. Alexander

William H. Moore, chairman of
Bankers Trust New York Corpora­
tion, and S. Henning Swanson, presi­
dent of the Bank of Jamestown in
Jamestown, New York, announced
last month that their respective
* boards have approved the acquisition
of the stock of the Bank of James­
town by the New York holding com­
pany. If approved, the Jamestown
bank will be the fifth bank owned by
the corporation, whose chief member
is Bankers Trust Company of New


Minnesota News
Twin Cities News
South Dakota News
North Dakota News
Montana News
Colorado News



W yoming News


Nebraska News
Omaha News


Lincoln News


Iowa News
Des Moines News



New Gamble-Skogmo Symbol


Bank PRM A W ill Meet In Chicago, September 22-26

B. C. Gamble, chairman of GambleSkogmo, Inc., of Minneapolis, recent­
ly unveiled a new corporate symbol
for the retail and wholesale firm. The
symbol consists of a stylized letter
“G,” and is a modernized version of
the identification used for more than
* a quarter of a century on company
stores, letterheads, trucks and prod­


The Bankers Market Place

Along with the symbol, the com­
pany has initiated a new typeface to
replace the script logo it has been
using, and in tr o d u c e d “G am ble
Green,” a shade of olive green, as the
* official company color of identifica­


562 NAB AC Students a New High
Conventions Calendar


Index of Advertisers


In the Directors’ Room

306 15th Street, Des Moines, Iowa 50309, Telephone (Area Code 515) 244-8163
Clifford De Puy

Malcolm K. Freeland

Ben J. Haller, Jr.
Associate Editor
Janies Freeland

Associate Editor
Barbara Franklin
Advertising Assistant
Mildred Savich

Circulation Department
Lena Sutphin

Field Representative
AI Kerbel

Field Representative
Joe M. Smith

Bertha Sodcrquist
Field Representative
Paul Masters

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

N orth w e stern Banker, Septe m ber, 1968
Federal Reserve Bank of St. Louis


lïxp in in s "tie n t in y M o n e y "
Manufacturers Trust Compa­
ny of New York has prepared a


“ We are very grateful fo r
writes Harold Walker, V. P.

16-page, full color insert entitled, “ The
Truth About Renting Money,” for in­
sertion into the metropolitan edition
of this month’s Reader’s Digest.
Theme of the promotion piece is
that borrowing is really renting
money. Included are discussions of
interest rates, where the money you
rent comes from, who gets the fee
you pay to rent it, why the bank
wants to rent out money. The insert
also includes a glossary of credit
terms and examples of how families
and small businessmen use rented

Arkansas City, Kansas
“ We fe e l that The Picture
Publications are the most effec­
tive customer relation service we
have ever been able to offer.
They have certainly helped our
customers to do a better job —
fo r themselves as well as fo r
us at the bank. We are grateful
fo r this information. ” Harold
R E N TIN G M O N E Y is explained in new

E A R L F. C R O U S E


P R E S I D E N T . & E D I TO R


Please circle the star that ex­
presses your need, attach to
regular bank letterhead and
-^Send samples
^ A sk a Representative to call
^ G iv e us a Free 60 -day reser­
vation and outline an action
Q Send samples of your farm
loan application and cash
flow forms
PHO NE 2 1 7 / 3 6 7 - 6 5 7 8
P. 0 . BOX F, URB AN A, ILLINOIS 6 1 8 0 1

N orth w e stern Banker, Se pte m ber, 1968
Federal Reserve Bank of St. Louis

New Computer Program
For Noil-Programmers
Computer Resources Corporation of y
Wilton, Conn., has developed a new
computer program which enabels non­
programmers such as auditors and
bank managers to work with informa­
tion inside of a computer in the same 1
way they formerly could when the
work flow was manual. Called “AuditThru,” the new technique is accomplished through simple English language requests which are translated
into computer language within min­
utes. No programming experience is

To Head Security National
Business Development

Walker, Vice President.

The better way to find

ward J. Buhle, retail banking depart­
The bank also named James H. Da­
vis and Maurice G. Friedman assist­
ant cashiers in the commercial bank- *
ing department, and James S. Scott
assistant cashier in the retail banking
Karl Patek of the international '
banking department was named co­
manager of the Frankfurt, Germany,
branch of the bank scheduled to be
opened this fall.

16-page brochure distributed by Manufac­
turers Hanover Tr. Co., New York.

The bank will also use newspaper
space, radio and TV time, subway car
cards, in-bank displays and direct
mail for the promotion.
Manufacturers Hanover Trust has
ordered an insert overrun of one and
one-half million copies to be made
available upon request. Copies may
be secured from Manufacturers Han­
over Trust Company, 350 Park Ave­
nue, New York, N. Y. 10022.

Chosen Officers at
Continental Illinois
Edward J. Murphy, Gerald K. Berg­
man and Donald H. Myers have been
elected vice presidents of Continental
Illinois National Bank and Trust Com­
pany, Chicago, it was recently an­
nounced. Mr. Murphy is a member
of the bond department and Mr. Berg­
man and Mr. Myers are members of
the commercial banking department.
Five second vice presidents were
also elected: Bernard S. Knobloch,
bond department; Craig R. Carpenter
and Kenneth Rudnick, commercial
banking department; William D. Plechaty, operating department, and Ed­

Jack F. Holland, vice president of
Security Pacific National Bank, Los
Angeles, has been placed in charge of
the bank’s business development ac­
tivities at the Northern California
headquarters. He formerly headed v
the business development department
at the Los Angeles head office.
Mr. Holland began his banking ca­
reer with Farmers and Merchants
Bank, a predecessor of Security Pa­
cific, in 1932. He was elected vice
president in 1955.
The bank also reports the death of
Roy Littlejohn, vice president and >•
counsel for the bank. Mr. Littlejohn
was 53 years old.

Advance at Harris Bank
John R. Golden was advanced to
the post of vice president and trust
counsel at Harris Trust and Savings
Bank last month. Mr. Golden has
been trust counsel for the bank since *
Elected assistant vice president,
also in the trust department, was Wil­
liam C. Goodwyn, formerly an in- '
vestment officer. Three new trust of­
ficers were also named. They are
William Naftzger, George K. Spiel
and William A. Thuma, Jr. Miss
Rosemary Martin was appointed an *
investment officer.



You need inside facts to make decisions.
So Chemical New York’s Credit Check service gives
you and your customers up-to-the-minute credit
information on individuals and corporations
anywhere in the country.
That’s why, when so many correspondents
think inside, they think Chemical New York,
the hank that works hardest for you.
What do you think?

Yew York

Member F.D.I.C.
Federal Reserve Bank of St. Louis

Northwest ern Banker, Se pte m ber, 1968


for Collateral
There is nothing like Douglas-Guardian's bonded inventory
protection to put a loan officer at ease. For more than 50
years, our firm has specialized in efficient inventory control
and bonded collateral protection. Our unique Verified Inven­
tory Control system helps your clients raise the cash they
need, reduces paper work to a minimum, assures maximum
security for your bank and simplifies loan procedures in
conformance with the Uniform Commercial Code and the
Uniform Warehouse Receipts Act. The more involved your
client's inventory is, the more important Verified Inventory
Control becomes to him and to you. For all of the details,
write or call today:

Gerald E. Leighton
Central National Bank has an­
nounced the death August 8 of Ger­
ald E. Leighton, 45. Mr. Leighton
jo in e d C en tral
National in 1965
as a correspond­
ent bank repre­
sentative, and he
w as e le c te d as­
sistant cashier in
1966. He had pre­
v io u s ly been a
livestock commis­
sion b r o k e r at
Union Stock
G. E. L E I G H T O N
Yards in Chicago.
Mr. Leighton is past president
and director of the Chicago Livestock y
Exchange, and was a director of the
International Livestock Exposition.

European Ventures for
Chase Manhattan
The Chase Manhattan Bank and the
Bank of Ireland announced joint for­
mation of the Chase and Bank of Ire­
land (International), Ltd. last month.
The new bank will have assets of $20
million. It was formerly known as
The National City Bank, Ltd., a whol­
ly-owned subsidiary of the Bank of
Ireland. Chase Manhattan’s partici­
pation is being effected by its affiliate,
Chase Manhattan Overseas Banking
Appointed president of the bank
was King F. Lowe, vice president of
CMOBC. Also representing Chase
Manhattan on the board are Victor
E. Rockhill, Chase Manhattan execu­
tive vice president and chairman and
president of CMOBC, and James W.
Watts, vice president in the interna­
tional department.
The bank has also announced appli­
cation has been made to both United
States and Swiss authorities for es­
tablishing a wholly-owned banking
subsidiary in Geneva. The bank will
initially be capitalized at the equiva­
lent of $6.3 million to do general bank­
ing business, but specializing in Euro­
currency financing for multinational

Chase Manhattan Promotions

Douglas-Guardian Warehouse Corporation
P. 0. Box 52978, New Orleans, La. 70150, Phone 504/523-5353
Offices in 15 Principal Cities

Northwestern Banker, Se pte m ber, 7968
Federal Reserve Bank of St. Louis

Charles M. Frey, James B. Doten,
Jr., and Dominick H . Mottola have
been advanced to vice presidents at
the Chase Manhattan Bank in New
York. Mr. Frey joined the bank’s
trust department in 1923 and was first
elected an officer in 1958. Mr. Doten
and Mr. Mottola are both in the bank
operations department.


Member Federal Deposit Insurance Corporation © Bankers Trust Company

w e’ve been thinking about it every day since 1916.


Fifty-two years.
That’s how long it’s been since
Bankers Trust began pioneering
retirement programs in the United
The first plan we worked out
was used right here in our own
Besides strengthening relations
between ourselves and our em­
ployees, it proved a simple point:
that good banking begins at home.
But ultimately, the word got
Today over 2 % million people
are covered by pension plans ad­
ministered by Bankers Trust.
And what’s good for the big
boys works as well for individuals.

So we also handle retirement plans
for the self-employed.
Retirement programs were a
pretty advanced idea back in 1916.
But we’ve always been a pretty
advanced bank.
We found ways o f investing
money in pension funds that no
one had thought of before. We in­
novated the extensive use of com­
mon stocks, direct placements,
mortgages and real estate.
Now we spend over Si,000,000
a year on investment research
We provide information and fur­
nish annual reports to our pension
plan customers to help them main­
tain the tax exempt status of their

trusts. We do all the paper work,
keep up on new legislation, and
keep down costs.
We’ve become so skilled since
those early days that we can ac­
tually promise low administration
costs, better means for invest­
ments, and more flexibility in fi­
As a matter of fact, since 1944
the pension plan guidebooks we
publish have been the definitive
sources of information for just
about everyone interested in the
subject. Even other banks.
If you’re interested in work­
ing out a retirement plan, indi­
vidual or corporate, you and
your legal counsel ought to talk


it over with a Bankers Trust man.
He’ll work with you on exemp­
tions and other tax advantages.
And he’ll tell you how trusts can
help you compete for better em­
The fact is that we’re so well
equipped to administer these trusts
because so many people trust us.
We’ve proven ourselves.
W hen a Bankers Trust man
works on pension trusts, that’s all
that he does. He handles the money
as if it were his own.
In that sense he doesn’t even
work for us.
He works for you.
T h a t ’ s w hat tru st is all


You’ll find a trustee at Bankers Trust.
Federal Reserve Bank of St. Louis

N orthwestern Banker, Se pte m ber, 1968

At American National, Chicago

S tu lts S u cceed s S tra u s A s
C h ief
E x e c u tiv e O fficer
E. STRAUS, chairman of
the American National Bank and

In addition to providing maximum
earnings (IF it is providing maximum
earnings), is your investment portfolio
fully meeting your bank’s needs in re­
spect to liquidity . . . to seasonality . . .
to cylical and secular trends . . . to your
local economic conditions . . . to the
type and composition of your accounts
. . . to the influence of your dominant
accounts . . . to the liquidity require­
ments of your loan portfolio?
Studley, Shupert & Co., Inc., of
Philadelphia believes that each of these
questions must be asked—and the an­
swers to each thoroughly analyzed—
in order to measure bank investment
portfolio effectiveness. Moreover, these
questions must be asked continuously
. . . and efforts must be made to mini­
mize all negative elements and to capi­
talize on all positive elements revealed
by the answers.
In giving substance to our philoso­
phy of bank portfolio effectiveness, we
do not offer merely an “ analysis serv­
ice” or a “ guidance service” or an “ ad­
visory service.” Instead, ours is a full­
time management service. It is designed
to save you work . . . to improve your
bank’s earnings . . . and to maintain
your portfolio so that it always meets
your bank’s varying needs.
Our explanatory brochure is avail­
able to interested bank officers. Write.

& C O .. IN C ..




860 Suburban Station Bldg., Phila., Pa. 19103
hwest ern Banker, Se ptem ber, 1968
Federal Reserve Bank of St. Louis

Trust Company of Chicago, recently
retired as chief executive officer of
the bank. Mr. Straus continues as
active chairman of the board. Assum­
ing his position of chief executive
officer is Allen P. Stults, president of
the bank since 1963. The shift be­
came effective September 1.
Mr. Straus began his financial ca­
reer in 1923 with a family investment
banking firm, S. W. Straus & Com­
pany, then the world’s largest financier
and distributor of real estate mort­
gage bonds. The firm founded the
Straus National Bank in 1928, the
name of which was changed to Ameri­
can National Bank and Trust in 1933.
Mr. Straus has been an officer and di­
rector of the bank since that time.

R. E. S T R A U S

A. P. S T U L T S

Mr. Stults also joined the bank in
1933, working in nearly every depart­
ment of the bank for his first several
years. He was first named an officer
in 1942, became executive vice presi­
dent in 1956, and a director the follow­
ing year. He is president of the Illi­
nois Bankers Association. Both Mr.
Straus and Mr. Stults have been and
remain very active in Chicago and
Illinois business and civic affairs.

Bankers Trust Elects
Sixteen Vice Presidents
William H. Moore, chairman, Bank­
ers Trust Company of New York, re­
cently announced the election of 16
first vice presidents and vice presi­
Elected first vice president in the
m e tr o p o lita n banking department
were Edwin J. Dikeman, Jr., head of
the investment bankers and brokers
division, and Harry F. Tappen, head
of the loan administration division.
Mr. Dikeman has been with the bank
since 1927 and Mr. Tappen since 1929.

In the national banking department
five first vice presidents were elected:
Arthur B. Griffin, New York division;
James K. Campbell, Eastern division;
D. Burt Elliott, Central division; John
Keat, Southern division; Russell W.
Billman, Western division.
In the investment department five
vice presidents were appointed. They
include Richard Boyd, Stanley Taben,
George P. Montgomery, Edwin L. Si- .A
bert and Thomas A. Cox. Four men
were elected vice presidents in the
trust department. They are Emil P.
Cenci, Hugh F. Coyle, Walter I.
Hughes and James E. Gaskin.

$ 2 5 Million Harris Issue


The Harris Trust and Savings Bank
of Chicago announced August 16 that
it proposes to issue $25,000,000 princi­
pal amount of convertible capital
notes due in 1993. The offering will v
be on a subscription basis to share­
holders at a ratio of $100 principal
amount of notes for each 10 shares of
caapital stock held on the record date, S
expected to be September 6. The First
Boston Corporation is forming a
group of underwriters to underwrite
the offering.
Kenneth V. Zwiener, chairman of the v
board, stated that the proceeds of the
issue would be added to the capital
funds of the bank to provide for the
continued growth of the bank’s busi­
ness, particularly increased loan de­
mands of the bank’s customers.

Walter Heller Sets
Record Volume, Profits
Walter E. Heller & Company of Chi­
cago achieved record volume and
profits for the first half of 1968. Nor­
man B. Schreiber, president and chief
executive officer, said that earnings
per common share, after preferred
dividends, rose 5.3 per cent to 60
cents. Total net income for the pe­
riod was $6,038,436, compared with
$5,791,489 for the first six months of ^
Volume of finance business handled
during the period rose 16.7 per cent
to a record $1.6 billion. Net receiv­
ables June 30 totaled $602,216,141, a r
rise of 15.8 per cent over $520,267,067
June 30 last year.


It takes a sharp pencil to draw a fine line
But when that fine line divides prudent high-ratio
mortgage loans from poor investments, it also
takes sound judgment and broad experience.
Lending institutions have learned to depend on
MGIC underwriting to draw that fine line straight
and without deviation.

Thus, MGIC not only provides a dependable
guaranty against loss but also underwriting
expertise to backstop the lending institution’s
good judgment.
For mortgage loan originators or purchasers,
MGIC insurance is the mark of investment quality
and guaranteed protection.

600 Marine Plaza, Milwaukee, Wis. 53202. Telephone 4 14-272-8060. Coverage available nationwide except Connecticut, New Jersey, New Y o rk , and Rhode Island
Federal Reserve Bank of St. Louis

Northwest ern Banker, Se pte m ber, 7968

Commerce Executive Change
Frank E. Boesche, vice president,
has been named to head the bank’s
business development division, one of
the four major divisions of Commerce
Trust Company, Kansas City. The
post has been vacant since the retire­
ment of Carl A. Charlson, senior vice
president, a year ago. The business
development division embraces the
correspondent b a n k in g department,
the national accounts department and

J. B A R T E L S


help spearhead its development ef­
The correspondent banking depart­
ment has altered its geographic scope
of responsibility to embrace the states
of Kansas, Missouri, Nebraska and
Oklahoma. Banking relationships in
other states will be handled by the
national accounts department.
The national accounts department
will be headed by Norman Cowperthwaite, vice president. The depart­
ment will handle all territorial rela­
tionships, bank and commercial, in all
states other than Kansas, Missouri,
Nebraska and Oklahoma.

will also be responsible for Omaha,
Dallas, Fort Worth and Houston. Don
Anderson will continue to travel Ne-

F. E. B O E S C H E

R. S. S E L B Y

braska and will add northern Kansas.
The metropolitan accounts depart­
ment is headed by Clark Page, vice i
Robert S. Selby, recently head cat­
tle buyer in Kansas City for Swift
and Company, has joined Commerce
Trust Bank as a vice president.


the metropolitan accounts depart­
New head of the correspondent
banking department is James Bartels,
vice president. He replaces Bill M.
Lamberson, senior vice president,
who has joined the parent organiza­
tion, Commerce Bancshares, Inc., to

Three V P ’ S for Amex
T. C. C A N N O N

N. R.

Tom C. Cannon, vice president, will
be assigned to the national accounts
division and will supervise corporate
and correspondent bank business in
Iowa, Minnesota and Michigan. He

The appointment of three new vice
presidents for American Express International Banking Corporation was
announced last month. Named were
Gero von Grotthuss, European area;
William B. Beam, Middle and Far
East areas, and Robert P. Hegeman, 4
loan administration.

LIFE B E N C H ) C O N T IN E N T A L W E S T E R N L I F E IN S . C O .





616 10TH ST,
Northwest ern Banker, Se pte m ber, 1968
Federal Reserve Bank of St. Louis





Another good reason why more banks
do business with Chase Manhattan
than any other bank in the world

The bank with the wide
world reach offers you
imagination, vision,
creativity, innovation, scope
—just five of the compelling
reasons why bankers continue to rely on
Chase for comprehensive banking service.
We refuse to be stifled by banking
As a matter of fact, we thrive on all
sorts of way-out service requests.
As a thorough-going banker’s bank for
the last 100 years we have all the routine
correspondent services in a commanding
grip, but we go far beyond.
We do have a little touch of something
extra that seeks aggressively to get
things done for you.
Try us and see.

N .A ./l Chase Manhattan Plaza, N .Y ., N .Y . 10015 • Member FD IC
Federal Reserve Bank of St. Louis

Northwest ern Banker, Se pte m ber, 1968


What do Caracas and Manila
have in common?
The same international bank
in Chicago.
Federal Reserve Bank of St. Louis

If your business horizon includes Latin Am erica
and Southeast Asia, we invite you to becom e better
acquainted with Continental Bank’s newest interna­
tional facilities. Our new Caracas office, headed by
Hector R. del Rio. Our Manila office, managed by Jere
L. Jones.
These offices are staffed with men who are able to
give you knowledgeable local financial service. They
know banking. They know their countries and the peo­
ple who make things happen. They’re on the job to
help you.

The business atmosphere in Venezuela is invigo­
rating. With a population o f 9 million, the country is
dwarfed by Brazil’s 84 million or M ex ico’s 44 million.
But in more meaningful marketing terms, Venezuela
is something o f a Latin-Am erican giant.

P op. (M )

M exico

44.15 •

U . S . D ir e c t
F o r e ig n
In v est ( M )

,1 ,2 4 4

P e r C a p it a
In co m e ’6 6


Venezuela has a high level o f public and private
expenditures per person in relation to other LatinAmerican countries. Per-capita income is among the
highest in Latin Am erica, as is U.S. direct foreign
investm ent. T h e cou n try is a leadin g im porter o f
U.S. products.
O il is o f cou rse the b a c k b o n e o f V e n e z u ela ’s
econom y, and it provides substantial foreign exchange.
But the government is actively working on diversifi­
cation programs in agriculture and manufacturing.
Tariff protection helps create an attractive mar­
ket for many new industries. For companies seeking
world markets, many Venezuelan natural resources—
such as petroleum products, iron ore, and hydroelec­
tricity — offer substantial cost advantages. The Guri
Dam, currently under construction, will have a greater
hydroelectric output than Egypt’s Aswan Dam.
Other important econom ic considerations:
• Venezuela has a stable currency, with no ex­
change controls.
• Its inflation level is low. '
• L ocal financing can be arranged quite easily.
In total, we feel that the business atmosphere in
Venezuela is favorable for the foreign businessman.
W e’re prepared to give your firm local help for any
needs in this dynamic marketing area.

the country’s heritage. The Republic has a 60-year
history of close econom ic ties with the U.S., and its
educational system, courts, and legal codes are similar
to ours.
Although the country was once very dependent
on the U.S., it is now a vigorous, maturing dem ocracy
which is developing strong Asian econom ic ties. The
Philippines serve as an important hub for the vast
Southeast A sian m arket. T h e A sian D ev elop m en t
Bank is headquartered there, as is the International
Rice Research Institute.
A n impressive list o f U.S. businesses are cur­
rently located in the Philippines, and many Philippine
corporations are now expanding internationally.
The Republic of the Philippines has some im­
pressive econom ic strengths:
• For a developing nation, it has an abundance
of qualified, experienced people.
• The government exerts few controls over
business operations.
• T h e In v estm en t In ce n tiv e s A c t fa v o r s
nationals but provides good room for joint
• The country has good natural resources, in­
cluding sugar, copra, timber, and new agri­
cultural and mineral developments.
In many respects, this Asian dem ocracy is in the
development process. Filipinos’ vigorous nationalistic
feelings bode well for the Republic and have important
positive implications for the businessman. Currently
the area is receiving substantial new private invest­
ment. If your firm has interests in the area, Continental
Bank is there to serve you.

In-depth Service
In the Philippines, in Venezuela, and throughout
the free world, Continental Bank is prepared to de­
liver in-depth service. Our people are constantly prob­
ing foreign markets, watching international trends,
and interpreting them to find successful solutions to
com plex financing problems.
Continental serves you through an extensive net­
work of branch offices, representative offices, affiliates,
a n d c o r r e s p o n d e n t b a n k s , as w e ll as th r o u g h
Continental Bank International in New Y ork City.

It’s what you’d expect from
one of the world’s great banks.

Continental Bank

Republic of the Philippines
The Republic o f the Philippines is a “ natural”
marketing area for the U.S. businessman because of
Continental Illinois National Bank and Trust Com pany o f Chicago. 231 South LaSalle Street, Chicago, Illinois 60690. M ember F .D .I.C . • Continental Bank
International, N ew Y o rk • Branches: London • Osaka • Tokyo • Representative Offices: Brussels • Madrid • Manila • M exico City • Milan • Geneva • Caracas
Federal Reserve Bank of St. Louis

N orthw estern Banker, Se pte m ber, 1968

schedules for the departmental ses­
sions and clinics. The departmental
topics will cover advertising manage­
ment, sales management, research
management, m a rk e tin g presenta­
tions, staff sales training demonstrations, trust marketing, public rela­
tions and communications.

itu n k

P R M A M e et
l i i e u f f o f S ep tem b er

53rd annual convention of the
Bank Public Relations and Mar­
keting Association (Bank PRMA, for­
merly FPRA) is scheduled for Sep­
tember 22 through September 26 at
the Palmer House in Chicago. They
should provide five of the busiest days
any banker could
find at a r e a l
working conven­
With its theme
g e a re d to “The
C u stom er,” the
53rd con v en tion
will again offer
“Dawn D u ster”
sessions via two
b re a k fa s t meet­
E. M. P E N IC E
i n g s and f o u r
morning sessions! These are by the
way of warming up for the 33 depart­
mental sessions, 24 different clinic ses­
sions, a bonus clinic on the last day, a
general session each day addressed
by noted American business and gov­
ernment officials, luncheons, annual
banquet, and an assorted list of en­
tertainment features.
Presiding at the general sessions

In Dickinson

Where the best of the
h e a lth y N o rth ern grown
feeder cattle are sold.
80,000 cattle and calves
sold annually.
W e are encouraging our
producers to P R EC O N D I­
TION their cattle. W e will
have many thousands of
P R EC O N D ITIO N ED calves
available at the sales this
Each herd treatment will
be verified by C E R T IF IC A ­

Regular S a les E ve ry Thursday
w e s t e r n B a n k e r, S e p t e m b e r , 1968
DigitizedN for
Federal Reserve Bank of St. Louis


Elected in Chicago Bank

D. F. K R U S E L L

F. J. B L A K E

Thomas R. Shattuck has been elect­
ed a consumer loan officer at South­
western Bank in Chicago, according
to a recent announcement. Mr. Shat­
tuck was formerly in a supervisory
capacity in credit and collection oper­
ations of the loan department at the
Beverly Bank, Chicago.

Officer, Director Elected
At New York Bank

W . N. F L O R Y

R. M . C H E S E L D IN E

will be Edward M. Penick, president
of Bank PRMA and president of the
Worthen Bank & Trust Company,
Little Rock, Ark. Officers of the as­
sociation serving with him the past
year are: First vice president—Don­
ald F. Krusell, chairman, Peoples
Bank, Trenton, Mich.; second vice
president—Frederick J. Blake, senior
vice president, Central National Bank,
Cleveland, Ohio, and treasurer—Wil­
liam N. Flory, vice president, Harris
Trust & Savings Bank, Chicago. Ex­
ecutive vice president at Bank PRMA
headquarters in Chicago is Raymond
M. Cheseldine.
Program Chairman George Stephen,
assistant general manager of Montreal
Trust Company, Montreal, Canada,
has announced the following speakers
for the general sessions: Monday,
September 23—to be announced. Tues­
day, September 24 — Thomas W.
Moore, group vice president, Ameri­
can Broadcasting C om panies, Inc.
Wednesday, September 25 — News­
week Periscope Panel moderated by
Osborn Elliott, editor of Newsweek.
Thursday, September 26 — Congress­
man Wilbur Mills chairman of the
Ways and Means Committee, United
States House of Representatives.
Awarding of 10 Golden Coin Awards
will be made at the Tuesday noon
luncheon. Inaugurated last year, the
Golden Coin Award is given to those
who have achieved “excellence” in
public relations and marketing pro­
Each registrant will have a com­
plete list of the locations and time

James J. Byrnes has been named an
assistant cashier in First National
City Bank’s national division. He is
a commercial account officer in the
division’s Middle Western district,
which i nc l ude s
nine states from
Mi nne a p o l i s to
Mr. Byrnes, a
graduate of Corn e 11 University,
joined the bank
in 1966.
Elected to the
bo ar d of direc­
tors of the New
J. J. B Y R N E S
Y o r k b a n k is
Charles B. McCoy, president of E. I.
duPont de Nemours & Company. Mr.
McCoy, a graduate of the University
of Virginia and Massachusetts Insti­
tute of Technology, began with du­
Pont as a machine operator and was
elected president last year.





Opens London Branch
First Wisconsin National Bank of
Milwaukee has been authorized by
the Federal Reserve Board to open a
branch office in London, England, ac­
cording to Joseph W. Simpson, Jr.,
bank chairman. Mr. Simpson said
that the office, which is expected to
open in early 1969, is “a necessary
step toward providing a full range of
international banking services to our
midwest clients and toward meeting
their growing need for Eurodollar
and other forms of non-resident finan­
Edward R. Ernst, Canadian banker
with over 40 years experience in in­
ternational banking, has been named
by the bank to manage the office.
First Wisconsin has had a represent- ►
tative office in London for several


m w m m



§p W

W h y


w e

give a w a y
a ll t h i s s t u f f ?

W e have a building in Chicago jam m ed with advertising and
merchandising aids that w e’ re giving away at the rate o f three
million pieces a month. W e have a group o f seventeen hard­
w orking people shipping them out and over 100 busy sales
representatives sending in the orders. W hy do we do it?
Because this material is the key to successful bank check
m erch a n d isin g . Banks ca n ’ t sell ch eck s w ith ou t e ffe c t iv e
merchandising aids. And these aids are effective. W e have
them to cover nearly all the needs that banks have experienced.
The techniques for their use have been highly refined and the
aids are con sta n tly b e in g ch an ged and updated to r e fle c t
contemporary trends.
W e will not only produce Personalized Checks for your bank
in an accurate, fast and economical manner, but we will help
you sell them. It’ s ju st a part o f the plus you get from us.
Federal Reserve Bank of St. Louis











(DsucUt^ Wlwwui,



Minnesota Commissioner of Banks,
St. Paul, Minnesota.

“ The real danger in the banking business today
is that some authorities consider it an inevitable
situation where national banks take over the entire
banking scene.”
This was the warning sounded by Phillip Hewes,
president of the National Association of Super­
visors of State Banks (and commissioner from Con­
necticut), at the District Two meeting of NASSB,
which you hosted at Breezy Point Lodge near
Brainerd, Minnesota.
Willis W. Alexander, Jr., vice president of the
American Bankers Association, and president of
the Trenton Trust Company, Trenton, Missouri,
joined Mr. Hewes in warning the 250 delegates of
the dangers to the dual banking system. He said:
“ A booming economy, rising income, a more
sophisticated consuming public and a dynamic free
enterprise system are making tremendous demands
on all financial institutions.
“ State banking regulatory officials must establish
a climate in which their banks can satisfy the
changing financial needs of the public. If the states
do not make certain that banking is able to respond
in a sound, yet progressive manner, then the fed­
eral government will. And when it does, it may
not be through the banking system at a ll!
“ For the federal government has a distressing
habit of organizing its own financial institutions,
or of taking charge of the direction of financial
matters whenever it feels that important economic
and financial problems are not being solved by the
existing structure.”
It seems to us that executives of both state and
national banks are equally disturbed at the ten­
dency of the federal government to intrude ever
more deeply into the banking business. Some of

these intrusions may have been desirable, but the
accumulation of them over the past few years has
become almost overwhelming. Perhaps we cannot
reverse this trend— but, we can take steps to see
that further intrusion will not be made without
justification. On a local level, this can best be done
by keeping in touch with your congressmen and
state legislators.


At the same time, state supervisors must recog­
nize the need for banks to enter new areas so as to
properly serve the public’s needs. Mr. Alexander
warns that in the past there has been far too much
“ knee-jerk reaction”— to either stop what is hap­
pening or to copy it. With qualified commissioners
like you, Mr. Rye, and some of your counterparts
in surrounding states, we have confidence that
Americans will continue to be best served by the
dual banking system. “ Knee-jerk reactions” will
give way to a dynamic and progressive state bank­
ing system.

CDsuaJi.. C V i i h w c

J j.n d q u jiA L ,

Secretary, Iowa Bankers Association,
Des Moines, Iowa.

Over 25,000 people visited the display booth
sponsored by the Iowa Bankers Association at the
Iowa State Fair, and we feel that you and the As­
sociation should be commended for this outstanding
effort to “ sell” banking services to Iowans.
More than 70 Iowa bankers cooperated in taking
turns manning the display during the 10 days of
the State Fair. It was particularly gratifying to
see members of the younger generation take an in­
terest in the basic fundamentals of handling money
through a bank at your animated display.
We hope that other hankers groups, on both a
county and state level, will follow the lead of the
Iowa Bankers Association in this progressive effort.




N orthwestern B a n k e r, Se ptem ber, 7968
Federal Reserve Bank of St. Louis


0 ° c ^ x°

SEPT. 30, 4:00-7:00 P.M.




Join us at the 94th ABA Convention
Federal Reserve Bank of St. Louis

N orthw estern
N ational
Bank of Minneapolis
N orth w e stern Banker, Septem ber, 7968



When Ozark spreads its wings, it really
covers Mid-America. The big cities . . . the
little cities. In fact, 59 o f them. That’s why
Go-Getters who want to get places go Ozark.

go-getters go


hwest ern Banker, Se pte m ber, 1968
Federal Reserve Bank of St. Louis









What is CDC’s
"Bankers Cooperative Program”?
w t’s an important service to
bankers. It helps you make
loans to customers where you
might normally have to turn them
down. Experience has proven — for
loans which may exceed your
present guidelines, the CD C Plan is
faster than a special board
meeting! It’s surer than
correspondent bank assistance. The
“ Bankers Cooperative Program1' is
safer than raising loan limits . . . and
smarter than saying “ no" to a
good customer.


Check these meaningful advantages:
You turn down fewer loans —
you have more satisfied customers.

2 You make loans beyond the
customer's loan limits without
referral to another bank.
3 All financing is arranged through
you. We handle all the details,
report regularly to you.

Our people work with you,
or your clients . . . if requested.

5 You get all the credit for
arranging the excess financing—
an extra measure of prestige for
your bank.

Phone or write for the complete
story on the CDC “ Bankers
Cooperative Program."



105 West Adams Street
Chicago, Illinois 60603
(312) AN 3-5800
2975 Wilshire Blvd.
Los Angeles, Calif. 90005
(213) DU 5-831 1

For business on the grow.

R. McPherson, Jr., president
Federal Reserve Bank of St. Louis

Northwest ern Banker, Se pte m ber, 7968


O ffers C ounseling hg C om p u ter
speed is being linked
with financial counsel in a new
capital planning service announced by
Harris Trust and Savings Bank, Chi­
cago. Bank officials say the service
is one of several in a series of com­
puterized financial consulting services
Harris is developing.
According to Harris President Wil­
liam F. Murray, the capital planning
service provides management with
greater flexibility in determining capi­
tal needs over several years. An im­
portant part of the service is personal
consultation with corporate financial
officers to project sales and income
for five years and to determine capi­
tal requirements.
Rather than project just one level
—traditionally called the “best guess”
—projections are also made for both
high and low levels of sales and in­
come. By using several projections, a
range of possible capital needs can be
produced and the effects of variations
in sales and income can be seen by
management. Thus requirements of
a financing program can be assessed
well in advance of a peril point, Mr.
Murray added.
As part of the service Harris finan­
cial specialists review most historical

operating s t at e me nt s and balance
sheets. Existence of trends is noted
and compared with future forecasts.
For each year, three estimates of fu­
ture sales growth and three esti­
mates of future profit margins are
made. Two levels of asset require­
ment are determined.
Projected figures for sales, profits,
and assets are used for computer
computations to provide 18 different
balance sheets for each of the next
five years or a total of 90 possible bal­
ance sheets. From these calculations,
Harris financial specialists work with
management for interpretation of the
projections and recommendations for
handling capital needs.
Harris started development of the
program one year ago. According to
Mr. Murray, during the experimental
period the bank found the program
worked well with both large and me­
dium size companies.

McKinney Elected Senior
Officer by Irving Trust
George W. McKinney, Jr., has been
elected senior vice president and head
of the investment administration di­
vision of Irving Trust Company, New

I o w a ’s O ld est Su rety Com pany

Western-Southern Life provides a
wide range of individual and group
credit in su ra n ce co verag e p lans
specifically designed to meet the
n eed s of loan d ep artm en ts and
creditor corporations regardless of
the size or mode of loan operation.
Broad coverage, liberal age, term
and amount limits with attractive
commission and convenient reporting
system makes W estern-Southern
plans profitable programs easy to
administer. Write today for complete
P .0. Box 1119 • Cincinnati, Ohio 45201

A Mutual Company— William C . Safford, President

N orth w estern Banker, Se ptem ber, 1968
Federal Reserve Bank of St. Louis


Mr. McKinney was an officer
of the Fe d e r a l
Reserve Bank of
Ri c hmo nd, Va.,
before coming to
Irving Trust in
1960 as an assist­ r
ant v i c e pr es i ­
dent and econom i s t. He w a s y
elected vice presi­
dent in 1961.
He is chairman
G. W . M c K I N N E Y . JR.
. ,,
of the Bank Man­
agement Committee of the American y
Bankers Association, and a member
of the Advisory Council on Education­
al Policy at the Graduate School of
Business Administration of New York
University. He served as president
of the National Association of Busi­
ness Economists from 1965 to 1966 and
was named a Fellow of that organiza­
tion last year.
Mr. McKinney holds Master’s and
Doctor’s degrees from the University
of Virginia. He is a graduate of the
Stonier Graduate School of Banking A
at Rutgers University, and serves on
the faculty of that school.

Named to Posts at
Bank of America


Four senior vice presidents were re­
cently named to serve on the advisory
council of the board of directors
at Bank of America. They are Joseph
A. Carrera, Robert H. Fabian, Paul
E. Sullivan and G. Robert Truex, Jr.
Mr. Carrera, responsible for admin­
istration of international activities, ■4
and Mr. Fabian, head of all the bank’s
legal activities, are headquartered in
San Francisco. Mr. Sullivan, coordi­
nator of Southern California activities
of the bank, and Mr. Truex, head of
the international banking in Cali­
fornia, are located in Los Angeles.
Mr. Truex was named recently as
southern division senior credit exec­ *
The bank has also announced the
election of Joseph Schmedding as
senior vice president and senior trust
officer of the bank’s statewide trust
depar t ment , headquartered in San
Francisco. Mr. Sc hmeddi ng, who
joined the bank in 1947, has been
head of the Northern California trust y
activities since 1963.
The bank’s New York subsidiary,
Bank of America, New York, has an­
nounced the recent election of Robert
G. Mayer to the position of senior
vice president. Mr. Mayer has charge
of the administration of the bank. He
has been with Bank of America since V
1947 and with the New York bank
since its formation in 1950.

Second to none
in correspondent
banking service

Because. . . the correspondent
banker at the First is a thorough,
systematic banker and business
man. His firsthand knowledge and
insight in many business fields,
augmented by his extensive
banking experience, mean the kind
of correspondent banking service
that is second to none.


of Kansas City, Missouri



Main Office— 10th & Baltimore
Kansas City, Missouri
Federal Reserve Bank of St. Louis

Phone 816 BA 1-2800/TELEX 04-2210
M em ber Federal Deposit Insurance Corporation


(T è

«Y »

Three new senior vice presidents
were elected August 20 by Northern
Trust Company of Chicago. They are
Charles H. Barrow, national group;
James D. Hinchliff, Chicago metropol­
itan group, and Lynn H. Miller, ad­
ministrative division.
Robert L. Lambert was elected vice
president in the personal checking di­
v i s i o n of the
banking departhment. Also prom o t e d in the
banking depar t ­
ment to second
vice p r e s i d e nt s
were Phillip H.
Boersma, Chi c a­
go group; John N.
Fix, n a t i o n a l
group, and Ernest P. Waud III,
international banking. Oliver E. Rose
was named second vice president in
the personnel department. Mr. Fix is
well-known to bankers in upper Mid­
west states.
Named assistant cashiers in the
banking department were Robert C.
McCall and Leslie Southorn.
Directors also announced that the
quarterly dividend rate on the 1.5 mil­
lion shares of capital stock will be in­
creased from 65 to 75 cents, payable
October 1 to shareholders of record
September 10.

Are your checks
as safe
as your vault?
Safekeeping depositor's funds is a
function of banking.

Bank vaults protect cash on hand. Massive
complex vault designs reflect the
importance banks attach to safekeeping.
But money must be protected while in
transit too, and bank checks on genuine Safety
Paper provide the most effective
protection for the transfer of funds.
Make sure your checks— as your vault—
provide your customers with maximum security.
Specify LaMonte Safety Paper.
Protection • Prestige • Printability

First in Safety Paper




- P




/ t h e

g r o w t h

c o m p a n y

LaMonte Division, Nutiey, N.J.— Burlington, Iowa
George LaMonte & Son, Ltd., Canada

tJ J
Nort hwest ern Banker, Se ptem ber, 1968
Federal Reserve Bank of St. Louis





1st of Chicago Elections



Three Senior V.P.s
At Northern Trust

A 3

Four men were recently elected of­
ficers by The First National Bank of
Chicago. Thomas A. Vaughan, for­
merly assistant cashier, was elected
assistant vice president. Mr. Vaughan,
who has been with the bank since
1963, is in the investment department.
William D. Maloney was elected as­
sistant vice president in the auditing
department. He has been controller
at the American National Bank and
Trust Company of Rockford, 111.
Theodore Wouk, who has been with
the bank 45 years, was elected trust
officer. John G. Day was elected as­
sistant manager of the international
banking department. Mr. Day will be
the bank’s Far East representative
with an office in Tokyo, Japan.
Announcement was also made of
the retirement of Orville H. Strong,
assistant vice president in the trust
department. He joined First Nation­
al in 1923 in the bond department,
and has been in the trust department
for 35 years. He was elected trust
officer in 1963 and assistant vice presi­
dent in 1965.






W h at to do
w h en a big farm loan problem
cro p s up?

Call us.
From the start, you’ll talk with a
banker whose full-time job is
working with banks in your part
of the country. He speaks your
language. This really helps.

Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis

Behind him are The First’s
farm credit specialists. Men
with real farm backgrounds and
years of experience in agricul­
tural financing. It’s their busi­
ness to know the ins and outs of
farm loans all over the country.
Together, you and these men

can handle any farm loan prob­
This is just one of many ways
the correspondent bankers in
Division F at The First can help.
When we can help you, just
dial Area Code 312 372-0408.

The First National Bank of Chicago
Northwest ern Banker, Se pte m ber, 1968



Morgan Management
Thomas S. Gates, chairman of Mor­
gan Guaranty Trust Company of New
York, announced last month that the
bank’s top management will be re­
structured. Mr. Gates said a five-mem­
ber “corporate office” will be estab­
lished to head the bank.
On January 1 Mr. Gates will be­
come chairman of the executive com­
mittee and will be succeeded as chair­
man of the board and chief executive
officer by John M. Meyer, Jr., now
president of the bank. Ellmore C.
Patterson, presently chairman of the
executive committee, will become
Walter H. Page and Ralph F. Leach,
both executive vice presidents, have
been named vice chairmen of the
board, effective September 1, and will
join Mr. Gates, Mr. Meyer and Mr.
Patterson as members of the five-man
group heading the bank.


tr ONG






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Northwest ern Banker, Se pte m ber, 1968
Federal Reserve Bank of St. Louis




Dale E. Sharp, who has been a vice
chairman of the board since 1962, will
retire November 1 from that position.
He will continue as a director. Lewis
T. Preston has been elected executive
vice president to succeed Mr. Page as
head of the international banking di­
vision. He has been vice president
and manager of Morgan Guaranty's
London offices. Frank P. Smeal will
succeed Mr. Leach as executive vice
president and treasurer to head the
government portfolio and bond divi­
sion; Mr. Smeal has been senior vice
president in charge of the bond divi­
sion. Langdon P.
Cook, vice presi­
dent, will succeed
him in that posi­
John P. McGin­
nis was elected
senior vice presi­
dent. Mr. McGin­
nis, who has been
vi c e pr e s i d e nt
since 1961, heads
j . p. M cG i n n i s
the i n v e s t me n t
advisory group in the trusts and in­
vestments division. Also elected sen­
ior vice president was Alexander M.
Vagliano. Mr. Vagliano has been chief
executive officer of Banca Morgan
Vonwiller in Milan, Italy, in which
Morgan Guaranty holds majority own­
Elected vice presidents were John
A. Scully, George W. Young, Gerald
A. Fix, John E. Page, Regis E. Moxley and David S. Bennett.








Lift that

Need help?

Merc s
"Red Carpet



only 58 seconds aw


Have you called us lately? If you have you’ll know what we mean by “ Red
Carpet Service.” It’s the dedicated, personal service your “ Man from M erc”
and his 1500 associates are prepared to give you on any correspondent problem.
Call us anytime. In just 58 seconds —according to Telephone Company surveys
— you can reach your “ Man from M erc” at 314/231-3500. Try him. H e’s
anxious to prove that M erc’s Red Carpet Service is available every time you
lift that phone.

W h ere the
"R ed
Carpet”rolls out
the minute you lift the phone

Federal Reserve Bank of St. Louis

S T . LO U IS , M O .



s -r "

N orthwestern Banker, Se ptem ber, 1968


(Only smart feeders know for sure)
Does he subsidize his own bankruptcy? It’s very possible,
if he buys feed from a company which competes against
him in the market place by raising turkeys, broilers, eggs
or cattle. Some of the great feed companies do not com­
pete against their customers. The 0. A. Cooper Co. is one
of them.




















The Carnation Co.
(Albers Feeds)








Central Soya Co.
(M aster Mix Feeds)








The 0 . A. Cooper Co.
(Cooper Feeds)







Doughboy Industries, Inc.
(Doughboy Feeds)








Hubbard M illing Co.
(Hubbard Feeds)








International M illing Co. (Supersweet
Feeds — Professional Feeds)








Nebr. Cons. M ills — Nixon & Co.
(Red Hat Feeds-Birdsey Feeds-Nixon Feeds)








The Peavey Co.
(P.V. Feeds)








The Q uaker Oats Co.
(Ful-O-Pep Feeds)
















Swift & Co.
(Sw ift Feeds)








Continental Grain Co. — Allied M ills
(Wayne Feeds)


(Nutrena Feeds)

Void in states where
prohibited by law.

THE0. A . Cooper Co.


Nort hwest ern Banker, Se ptem ber, 7968
Federal Reserve Bank of St. Louis


The Cattle Outlook
annual survey of livestock bankers in feedlot
I NandITSrange
areas of the upper midwest and moun­

tain states on the topic “The Cattle Outlook,” the
B a n k e r has learned that these experienced
cattlemen expect the price of fat catttle to hold up at
late summer levels until at least late in the year. The
general consensus is that choice steer calves will remain
strong at prices of $30 and upward.
A major area of concern to all is the low price of con­
tracts for new corn, priced from 87 cents to 95 cents per
bushel in many places, with some experienced farm
operators anticipating a possible drop in corn price be­
low 80 cents per bushel.
One respondent points out in his analysis of the out­
look for cattle this fall that the old adage “cheap corn
means cheap cattle” did not materialize in the past feed­
ing season, but it remains a factor that is uppermost in
the planning and thinking of cattle feeders. A number
of bankers also note that the increased feeding of cattle
has not visibly affected the fat cattle price yet because
orderly marketing at lighter weights has continued.
N orth w estern
Federal Reserve Bank of St. Louis

Those who feed cheap grain to cattle to heavier weights
could add substantially to slaughter tonnage very quick­
lyThe abundance of cheap grain apparently assures pro­
ducers of a continuing strong demand for replacement
cattle at prices holding up well with those paid a year
ago by feeders. Spotty drouth conditions in range areas
has affected prices in restricted locations, but generally
it is reported that range conditions are good, ranchers
have ample supply of feed and forage and are expecting
to sell calves and replacement cattle at top prices. Early
sales in late summer and contracts established in some
locations substantiate these firm prices.
The replies received from the survey appear on the
money supply for routine cattle loans is simple, although
interest rates have inched up. They also anticipate that
regular feedlot operators who continue their well estab­
lished marketing programs will make money this year,
although the profits are generally termed “fair.”
The replies received from the survey appear on the
following pages.
N orthwestern Banker, Se pte m ber, 1968


The First National Bank
Bowman, North Dakota

E HAVE had a rather dry season—very dry in April
and May, perhaps three and one-half inches in June,
and rather dry again in July and August. Harvest has
started on the wheat crop—winter wheat is averaging 25
to 40 bushels, spring wheat 10 to 30 bushels; continuous
cropping of corn ground having very poor yields. The
barley and oat crop is poor to fair.
Loan demand is moderate, due to the fact that gov­
ernment subsidy checks were paid early. Pasture con­
tinues below average.
Cattlemen are expecting 400-pound range calves to
bring $30 to $34, and yearling steers, $27 to $29. These
prices are anticipated, provided the fat cattle market
holds up to the $28 to $30 level.
There are few fat cattle in this area. The bulk of our
steers sell early, at 750 to 900 pounds.
Good bred yearlings will again bring $200 and above.
Vice President
First National Bank of Chicago
Chicago, Illinois

old adage of “cheap corn means cheap cattle” did
not materialize during the past feeding season, as fed

cattle prices have remained at a profitable level for over
twelve months. In the months ahead, the question is
“ Will cheaper corn mean cheap cattle?” Again, this may
not be necessarily true, but it is one factor cattle feeders
will consider in planning their feeding operations for the
year ahead.
Another near record corn crop is forecast, and the soy­
bean crop will be a new record. Current contracts for
new corn at local elevators is 87c a bushel and 95c at
river points in Illinois. The soybean price will be at
support level, less marketing costs at harvest time. This
adds up to the lowest feed grain prices in nearly three
decades and a near disaster for a lot of grain farmers.
The most recent report of cattle on feed insures an
abundant supply of beef for the consumer. The major
increases have occurred in California and Texas, and
12 percent of the increase is in the heifer class. This in­
dicates the total tonnage of beef will not increase, in re­
lation to the 7 percent increase in cattle on feed.
There has been a large increase in commercial feedlots, particularly in Texas, and to a lesser degree in the
Nort hwest ern Banker, Se pte m ber, 1968
Federal Reserve Bank of St. Louis

central plains states. The pressure is great to keep these
lots filled to capacity. Outside investors have more in­
terest in feeding cattle, because of the profits in recent
months. This will create a strong demand for feeder
cattle this fall.
The current contracts are 30 to 34c for choice steer
calves and 28 to 30c for heifer calves. Yearling steers are
being contracted for 26 to 28c. A year ago, there was an
opportunity to “lock-in” a profit by hedging cattle in the
futures market. This opportunity for price insurance is
very limited with present feeder prices, in relation to the
cattle futures market.
The fat cattle market should stay near present levels
until late in the year. Cattle feeders should expect some
decline from present levels by December and this will
probably carry over through the first quarter of next
year. I would expect the decline to be $2 to $3 per
hundredweight. Interest rates will be somewhat higher
than a year ago, as bankers have increased rates to offset
higher rates paid on savings and due to strong loan de­
mand. There will be ample loan funds for the good cattle
feeder. The successful cattle feeder will follow his nor­
mal program and should expect reasonable profits during
the coming feeding season.
Assistant Vice President
First Stock Yards Bank
South St. Joseph, Missouri

HE July 1 cattle-on-feed report indicates that the
number of cattle on feed was 7 percent larger than
a year earlier. Most of the increase in number was in the
group weighing less than 900 pounds and heifers again
accounted for a large part of the increase.
Also, according to the July 1 report, feeders intend to
market 5 percent more cattle in the third quarter of 1968
as compared to 1967. Weights could be an important fac­
tor. By feeding cattle to heavier weights due to the low
cost of corn, cattle feeders could easily increase the beef
supply sufficiently to add considerable downward pres­
sure on prices.
Prospects are for the supply of fed cattle on markets
to remain large. If demand stays strong, and weights do
not run too heavy, prices will remain steady on fed cattle
until early fall and then there will be a seasonal drop in
the market in the fourth quarter, possibly as much as
$1.00 to $1.50 per cwt.
At the present, I don’t think replacement cattle prices
will weaken, due to a strong demand and the prospects
for a big feed supply. If fat cattle prices decline due to
increased marketings in the fourth quarter, replacement
cattle prices will probably all move a little lower.










Executive Vice President
Shoshone-First National Bank
Cody, Wyoming

E BELIEVE that the situation in our area with
respect to producers is quite similar to the situation
that existed last year at this time from the standpoint of
range conditions and general feed and forage supplies.
The carryover stock of feed and forage was somewhat
better than we first anticipated a year ago, in that the
winter was fairly open and cattle were able to range
better and for a longer period than we had first thought.
The supply of feed and forage will apparently be ample
again this year. Range conditions have been better than
average to very good in most areas, although the high
range grass was somewhat shorter than last year because
of the cool weather conditions earlier in the season.
We anticipate that the calves should come off the
range with good weights, again somewhere in the 400
pound range or better. We anticipate that contract prices



for average weight steers will be in the 32c range, with
somewhat lower prices, of course, for heavier weights.
To date, few of our producers have contracted. We
believe that their attitude is that there is some good
prospect for slightly higher prices either on later con­
tracts or open market selling. Our producers have been
caught in the increasing cost squeeze and as a conse­
quence are hoping for and holding for somewhat higher
prices than last year.
We have again advised our customers to test the mar­
ket carefully in its early stages, keeping in mind, how­
ever, that with the probable marketing of slaughter cat­
tle at somewhat higher average weights than usual, the
market might tend to depress somewhat in the late
winter and early spring period.
Central State Bank
State Center, Iowa

OR the past weeks we have been in close touch with
reliable feeder cattle sources over an eight state area,
and a fair number of our “repeat buyers” have contracted

yearlings for current September 20th delivery. We find
some yearlings available at prices identical with early
prices last year. Steers 650 pounds to 750 pounds are
priced and were bought at $26 to $26.25, heifer mates at
$24 to $24.25, FOB western loading points, all strictly
choice quality.
Calf prices are also quoted at figures comparable with
last fall. Calves that we know, are now priced from $31$33 per hundredweight on steers, heifer mates at $27 to
$28.50, some areas a dollar higher. They are still in ample
supply. With some chance of a lower fat cattle market
in the October-November-December period, feeders for
delivery then might best be bought later on.
The availability of diverted acres for grazing on Sep­
tember 1st, together with excellent corn crop prospects
and lower cash prices, therefore, may combine to stimu­
late demand and run up prices on light cattle for current
We were 10 percent short of our five year average on
feeders this year, but expect that the above-mentioned
factors will cause our cattle men to fill up their lots
again this fall.
Money will be available as usual, and our interest rate
is unchanged.
With prospects for lower feed costs and no higher
feeder prices, I am mildly optimistic for fair profits again
next year for the efficient operator, who is also an in­
formed buyer and a good salesman.
Northwestern State Bank
Orange City, Iowa

SEEMS that each year when we review the cattle
I Toutlook
for the oncoming year, the banker has numer­

ous reasons to be very cautious and, in some instances,
rather pessimistic as to the profitability of the cattle
feeder for the coming period. Certainly, 1968-69 is no ex­
ception when we consider increased cattle numbers, abun­
dant feed supplies, high cost of money and general in­
creased cost in the cattle feeding business.
In our opinion, it becomes increasingly important to
develop a financial relationship with cattle feeders who
are very definite about their exact costs as pertains to
the manufacting of beef. Cattle feeding operations are
no longer a means of consuming roughage and some of
the products grown on the individual farms but are be­
coming a highly mechanized, intricate manufacturing
operation where management plays an ever important
role. Certainly, as we look at replacements costs for cat­
tle, they seem high in comparison to present fat cattle
Federal Reserve Bank of St. Louis

prices and with projected fat cattle prices for the last
half of 1969.
More important in our opinion are the efficiencies that
can be used to reduce the cost of gains and increase the
pound per day gain to enable the cattle feeder to market
these cattle at a lower price if necessary and still main­
tain a profit. We would anticipate that with the con­
sumer demand at an all time high, the first half of 1969
will show good cattle prices with fat cattle selling prob­
ably below the $25 level in the last two quarters of 1969.
This is based on the indication that there is an abundance
of light calves on the range coming to market this fall
and a rather limited number of yearling type cattle.
It becomes increasingly apparent that due to the size
of the normal cattle feeding operation and the tremen­
dous investments made to accommodate the increasing
numbers, greater emphasis must be placed on cattle,
money, and feed management, with somewhat less con­
cern over replacement costs, hopefully looking for a time
when we can systematically market cattle at lighter
weights to maintain strong consumer demand.
Senior Vice President
Stock Yards National Bank
Omaha, Nebraska

OST cattle feeders have had good profits up through
early August of this year. Most market men, how­
ever, feel that we are near or at the crest of fat cattle
prices for this year. Most of our feeders are taking a
long look at the price of feeder cattle as it exists today.
Steer calves have been contracted in the range of $32 to
$35 per cwt. with heifer calves at about $2.00 per cwt.
behind them. Yearling steers are being quoted at from
$26.00 to $28.00 depending on quality and size. Yearling
heifers show a spread of only about $1.00 at $26.00 to
$27.00 and 2-year-old steers are bringing from $25.00 to
It is the feeling of most of our feeders that they have
never known any year in which they had continuously
good markets with decent profits for the whole twelve
months and many of them seem to think the cattle feeder
is apt to run into difficulty sometime later this year.
The only problem is they do not know when. They feel
that so far it has been a feeder’s year but that the balance
of the year might be the rancher’s turn to make some
For the most part, crops look good. There ar.e a few
spots where it has been awfully dry and some spots have
been hailed out, but basically it looks like we will have
a bumper crop in the cornbelt this fall. If this develops,
we can expect cheaper feed than we had a year ago which
will create a big demand for feeder cattle and we do not
anticipate that feeder cattle will work lower this fall as
they did a year ago.
Some feeders in our area have already pulled in their
Northwest ern Banker, Septe m ber, 1968

year, so calves should be in good supply. A number of
local calf feeding areas are short on feed, which could
temper the demand. We would expect a fall replacement
market at lower than present prices, with the break to
come in mid-October to mid-November.
Our greatest problem is outside of the beef industry,
and that problem is one of having a strong national econ­
omy. Be prepared for a “rugged” wage and price freeze
after the new President takes office.
Loanable funds will be more plentiful this fall as other
segments of the economy begin to feel the slowdown.
The cost of borrowing should be steady to possibly a
shade lower except in historically low interest areas. Two
old rules of thumb for this business come to mind, (1)
the higher the market price goes on the up side the lower
it goes on the down side, and (2) tall grass and bumper
corn crops eventually result in cheap beef and pork.



Agricultural Representative
American National Bank & Trust Company
Chicago, Illinois

horns and stopped replacing, feeling that they want to
conserve the profits they have made and not lose them in
the last few months of the year.
Creditwise, again it looks as though any deserving
feeder will be able to finance his purchases, although he
may not particularly like the interest rate that he has
to pay.
Cherokee State Bank
Cherokee, Iowa

HERE is no doubt that we will have strong feeder
prices this fall with the cheap feed and the abundance
of it. It will entice a lot of farmers, who did not feed last
year, to be looking at cattle to market their corn.
This is not a lucrative situation for the so-called “in
and outers.” There has been some resistance to the
prices, but the later it gets, the less likelihood of any
price softening, as to the amount to be paid for cattle this
fall rests on the eagerness of the “in and outers” to get
in the cattle business this year.
Any way you look at the picture it is going to be ex­
pensive with a lot of built-in losses with the purchase.
I do not think this past year’s prices will be repeated
next year, so the only solution is to get as cheap a gain
as possible and a very economical operation. How to do
this is a problem for each individual operator. Some have
no choice, but to go light, and too many heavy cattle can
put a drag on the market. Proper marketing will be the
answer, but it will take a lot of will power for the feed­
ers to move their cattle on a down market when they are
fed to a marketing grade.
Vice President
Omaha National Bank
Omaha, Nebraska

HE 1968 profits in the cattle business to date give all
segments of the industry a ray of hope for better
things to come. Although we cannot visualize the fat
cattle market staying at the current levels, the supply
and demand factors are running at such a close balance
that it is difficult to predict a serious setback as was ex­
perienced in the 1962-1963 reversal. In the next six to
eight months the average price of slaughter steers (Oma­
ha basis) should not average under 25 cents per pound
during any market week.
Feeder cattle may be a little scarce on the yearling
order, with a large number of steers already moved into
the feed yards and more heifers held for cow herd re­
placements. A record calf crop was produced again this
Northwest ern Banker, Septe m ber, 1968
Federal Reserve Bank of St. Louis

have enjoyed a quite prosperous and
successful year. At the present time, it looks as

though this prosperity may continue for a while longer.
In the territory in which I travel, I cannot see that the
buildup in fat cattle will bring about a major break in
the market in the very near future. However, I do be­
lieve that with killing weights and publication of the
“Government on Feed Report,” 1968 prices have prob­
ably peaked.
As the new cattle crop begins to reach market finish
in mid-October to mid-November, we may see a break in
our fat cattle prices. However, with orderly marketing
and a continuation of the policy of selling cattle when
they have reached finish at lighter weights, I do not
believe this will be a break of major proportions. The
possibility is $1.50 to $2 per hundredweight for the bal­
ance of 1968, as I see it.
Next year is a different question: given the general
state of our economy and the fact of upcoming elections,
I don’t believe anyone can accurately project for the
first half of 1969.
Replacement cattle present an entirely different out­
look. At the present time, demand tends to exceed the
supply. Also, the numbers shown in our last government
report would appear to be more in the hands of the com­
mercial feedlots than in the hands of farmer-feeders;
many of the farmer-feeders in the territory I travel are
low on inventory of cattle.
This, together with this year’s abundant crops, will
lead to a good demand by the farmer-feeder for calves
and light yearling cattle to utilize this abundance of
grain. The supply of feed has seldom been greater; there
are very few drouth spots in the cornbelt, and a large
scetion of this area can look forward to a bumper harvest.
With today’s present grain prices and another bumper
crop practically assured, it seems impossible to expect
anything but lower feed costs in the coming year.
I believe all these factors will contribute to and sup­
port a higher price for feeder cattle throughout the fall
months, and especially calves and light yearling cattle
that will work in a farming program utilizing roughage
and silage for cheap gains.
There are three factors, however, which may give us
The old axiom that a year of abundance of feed
and low feed costs seldom proves to be a good cattle or
hog year holds quite true in nine years out of ten.
It is very, very seldom that one exceptionally good
cattle year follows another.
(3) Our greatest concern is the general economy: Just

how top-heavy is it? How much impact is the 10 percent
surtax going to have on the laboring man’s take-home
pay, and how will it affect his eating habits? These
questions, I believe, are unanswerable at the present
time. Also, in our general economy picture is a lot of
talk and rumor of a post-election tough wage and price
freeze. This would naturally have a great effect on our
cattle prices in 1969.
Vice President
Osage Farmers National Bank
Osage, Iowa

year seems to put increasing pressure on the
cattle feeders to get feeders bought at a price that
they can show a profit. Growth of cattle feed-lots through­
out the cattle feeding area, plus cheap feed, looks like the
stage is set for high replacement costs this fall. We are
fortunate in having beef as a favorite in the meat trade
and hope we can keep consumption at its present level.
It looks like the main corn belt has crop prospects
above average in yields for corn and soybeans. We have
had an abundance of rain and corn prospects have prob­
ably never looked any better in our area.
The supply of capital to finance the feeder cattle this
fall looks adequate. The cost of money is high and pros­
pects for any change aren’t apparent at this time. Banks
are paying a high interest rate on time money, and need
the high interest rates on loans to cover their operating
Good established cattle feeders will have sufficient
credit, but inexperienced feeders with small equities
could have more trouble financing at the higher cost of
replacement cattle. Light weight feeder cattle would be
easier for the feeder with light equity in his business to
get financed by banks and other lending agencies.
Assistant Cashier
Central National Bank in Chicago
Chicago, Illinois

will be in somewhat greater supply this fall, as
confirmed by the July 1 cattle on feed report. It indi­

cated feeders were finishing 9,304,000 cattle for market—
7 percent more than last year. Of this total, marketing of
steers in the 700 to 900 pound weight group at the time
of the report was 8 percent more than in 1967. It is this
weight group of the total which will be moving to market
from September to November which will most influence
price levels immediately ahead.
Of critical importance during this period will be the
slaughter weights of the cattle to be marketed. Orderly
marketing of fed cattle as they reached the desired de­
gree of finish for their grade has greatly contributed to
the strength in prices we have experienced so far this
year. Looking ahead, another favorable factor is that ap­
proximately 14 percent more heifers are included in the
numbers to be marketed from September to November.
Less total tonnage can be expected since heifers are
usually marketed at weights averaging about 200 pounds
less than steers.
Should this moderate market weight trend continue,
prices for choice steers should average in the $26 to $28
range for the remainder of 1968, despite the indicated
larger supplies. Unlike 1967, should market weights of
slaughter cattle increase this fall, burdensome supplies of
beef could result in a deterioration of price levels to
around $26.50.
Of favorable comment is the expectation that hog
slaughter numbers during the last three months of the
year should be slightly less than in 1967, and consumer
demand is expected to continue strong into next year.

Feed supplies again this year are expected to be near
record with government reports estimating the total corn
supply to be around 5,650 million bushels. With feed sup­
plies from spotted to generally good in the cattle pro­
ducing states, and excellent throughout the Corn Belt, a
brisk feeder cattle demand and strong price levels will
probably prevail. Weights are expected to be normal or
slightly lighter, due to dry conditions existing earlier in
the year in a number of areas of the West.
Should the fed cattle market continue to maintain cur­
rent levels, into the fall, I believe we can expect a strong
demand for loans throughout the Corn Belt. Prices for
choice feeder calves will probably average $29 to $31,
with some fancy offerings somewhat higher. Yearlings
should average $26 to $28. Should the fed cattle market
develop weakness, a softening of the feeder cattle price
level could be a possibility.
Again this year, margins in cattle feeding will remain
narrow, suggesting that when the price relationship be­
tween cash cattle and live cattle futures produces a profit
cattle feeders should consider hedging their purchases.
While it is recognized that there have not been many op­
portunities to hedge cattle purchases profitably this past
season, looking ahead, cattle feeders should avail them­
selves of this means to lock in a profit.
Sandhills Cattle Association
Valentine, Nebraska

majority of the Sandhills have been blessed with
another good year moisturewise. The major exception

is in the eastern area from around Bassett on through the
O’Neill, Ewing areas. Native hay yields have been re­
portedly running from 50 percent below last year’s to
normal in the areas of good rainfall. Some of the dry
pocket areas in the eastern part report very limited sup­
Most of the Sandhills experienced very cool weather
this past spring, with a fairly hard freeze as late as May
8, this accounting for the lighter hay yields. A severe
late spring blizzard hit most of the western portion of the
Sandhills, causing considerable losses of spring calves,
yearlings and some cow losses. Varying accounts of the
total number lost were reported, although it does not
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

(Good demand)
Steer calves (Heavy demand) . .$32.00-$36.00
Heifer calves (Heavy demand). .$27.50-$31.00
The final verdict on the prices will be made by the
Assistant Cashier
The United States National Bank of Omaha
Omaha, Nebraska

feeders are optimists “ as usual” and with
some basis for their belief. Actually, in 1968 this

appear that the total supply will be smaller than in past
We have had good rains this past weekend and off-andon this week (Aug. 12-17); it appears that it may have
come too late to help the eastern sections. Cattle move­
ment in this area has started earlier than usual. Move­
ment is normal throughout the western parts of the
“ Hills.” Most of the trading has been throughout the
local markets with the normal amount of contracts,
mostly on yearling heifers for late August and September
delivery. It will probably be another month before year­
ling steers start to move.
At the present time yearling heifers and steers and
2-year-old steers are in good demand. Light weight fall
calves are also in heavy demand. I look for the demand
for the heavier cattle to drop off rapidly and the lighter
weight cattle to be in the spotlight most of the fall.
It is hard at the present time to say what effect the
dry areas and light hay crop is going to have on the sup­
ply of stocker and feeder cattle. It would appear that
spring calves for fall delivery may be greater in number
than in past years. Also, the supplies of breeding cattle
for sale may be heavier than normal.
At present, there are no emergency needs for credit. I
do not foresee any big money problems for the ranchers
in obtaining operating capital, although the higher inter­
est rates will be one of the regulating forces, especially
for the smaller operators. Interest rates are averaging 7
to 8 percent.
I have a guarded air of optimism in looking ahead to
the fall marketing season. Although the total number
of cattle on feed may be up somewhat from a year ago,
it appears the total beef out-put is not likely to increase
too much. It would seem that the slaughter of cows and
non-fed cattle will probably be less than last year and,
with the larger number of heifers on feed, the total
weights of fed cattle may be less. Also, if movement of
finished steers continues at lower weights this will help
keep the total supply in line with demand. Considering
the many factors that can affect the market in the com­
ing months, I still look for a fairly strong fat cattle
The way things look now, prices on the average this
fall will probably be:
Two-year-old ste e rs...................... $25.50-$27.50
Yearling steers ............................. $26.50-$29.00
(Light weight steers in heavy demand)
Yearling heifers ............................$25.00-$27.50
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

carries forward to both the ranchers and the feeders.
Range conditions have been good most of the summer.
Parts of the eastern sandhills area are presently a little
dry, but Wyoming and western Nebraska still retain
good cover. (As good as last year at this time.) Con­
sidering normal conditions carry through the fall, the
rancher stands in a relatively good bargaining position.
Contracts have not been plentiful. There was some
activity late last spring, calling for fall calves to be de­
livered in July and some spring calves to be delivered
October 15. Most of these contracts were in the $30 range
for steers and $26 for heifers. We felt the prices at that
time were mutually satisfactory to both parties, provided
the weights were adjustable. It is interesting to review
the price pattern for calves, as they are following the
1967 pattern, at about $1.25/cwt higher.
The first six months here on the Omaha market, 400 lb.
choice steer calves averaged $29.45, as compared to $28.64
for the same period in 1967. It certainly appears that
steer calves purchased this fall will exceed this price,
as we look for $30 steer calves weighing from 425 lbs
to 450 lbs.
The supply of feeder calves will certainly be adequate,
as there was another small increase in spring calves
dropped. We can look for part of this increase to be
retained for herd replacements and possible expansions.
As long as prices retain their strength, this trend will
continue and will not affect prices this fall as demand
for beef continues to be impressive.
Fed cattle numbers are being marketed in greater num­
bers than in 1967 and at a higher price. Here in Omaha,
the excessive volume has not been noticed as prices are
favorable. A sprinkling of prime cattle at $30 has been
consummated with choice steers averaging $27.33 in
July. Here again we must look to the demand side for
our support. As long as the “demand” for beef is work­
ing for the cattle feeder, we can expect more stability
than depending on a cutback in supply, for a strong
market ($25.50 to $27.00) is expected to carry well into
Some publications have indicated heavier weights over
a year ago. This is not the case in the Omaha area as
the weights have been consistently lower than last year,
for the first six months. Imports are increasing and the
caution flag could show; however, if they do not become
excessive, weights will influence our prices more than
any other factor.
For the cattle feeder in the middle west, feed supplies
will be plentiful, realizing, of course, isolated cases of
crop shortages in parts of western Iowa and northeastern
Nebraska. Grain prices are certainly geared for the
heavy users. Corn prices have not come close to the
1967 level and show an extremely favorable relationship
between that and fed cattle. We can expect our farm
customers to be pushing for the purchase of calves, even
at higher prices. Current production, as well as carry
over for corn, milo, beans and barley, is considerably
more than adequate to stimulate any large increase in
grain prices this fall.











Factors That
Affect Prices of
Bank Stocks Today



H ill P r o f e s s o r


M anagem en t

U n iv e r sity o f M isso u r i
C o lu m b ia , M isso u r i

HE recent spectacular buying
and selling activity on the major
security exchanges has resulted
in new highs in trading volume. It has
also forced the “big board” to curtail
the time allocated for security trading
so that the “backroom” operations
of brokerage firms can catch up on
their backlog of work.
While only a handful of bank stocks
are traded on exchanges, they and
their over-the-counter cousins are at­
tracting today increased investor in­
terest. Some financial anlysts believe
the interest is simply a result of the
fact that the prices of so many other
industrial groups have been run up.
Thus, by comparison, many bank
stocks today look attractive on a price
times earnings basis.


Two Prices for Small Banks

There is a danger in over-simplifi­
cation as to what motivates stock­
holders to buy or sell and how they
capitalize the future prospects of a
company. This column will not pro­
vide answers to such questions. It
will strive, however, to raise some
pertinent points for thoughtful con­
The price of a small bank’s stock
has been akin to the two-tier price
system of gold. That is, one price,
generally a premium, averaging 30
per cent over and at times even high­
er of adjusted book value of a bank’s
stock is paid for a controlling inter­
est in a small bank. The other tier
price, paid to minority stockholders
of small banks is lower, often substan­
tially lower. The market is very thin
and spotty. Quotations are hard to
come by. Often it is the executive
officer of the bank who “makes” the
market by advising the minority
stockholder of the price at which the
“last” sale of stock was consummated.
This, in effect, becomes the “ offer”
and since the stockholder is known
and thus presumed interested in sell­
ing, it is likely, if the dividend paid
on the bank stock has not recently
Federal Reserve Bank of St. Louis

changed, that the previous transac­
tion is accepted as the standard of
value for selling the stock.
Holding Company Approach

Recently, in those states where the
holding company device has been
given the green light by state and
federal supervisory agencies, there
have been spectacular variations up­
ward in the prices of small bank
stock. The offers are predicated upon
“control” but tenders also are ex­
tended at premium prices to minority
stockholders as well as majority in­
Apparently, it is the belief of those
extending such offers that substan­
tially higher profit performance can
be anticipated from banks in the hold­
ing company than if it performed as
a unit bank. Whether some of the
high premiums and future capitaliza­
tions are justified becomes a matter
of some serious conjecture.
In the case of larger banks there
does exist somewhat less than ade­
quate over-the-counter markets. In
these markets it is hard to gauge the
extent of an over-the-counter dealer
position and the volume of floating
“Insider” Stock Trading

The periodic release by the Federal
Reserve Board of “insider” stock trad­
ing; that is, by officers, major stock­
holders, and directors of covered
banks, is informative and should give
the interested individual additional
insight as to the apparent reasons an
insider is buying or selling his bank’s
stock. The majority of banks, how­
ever, are not covered by the “insider”
Prices of the largest bank’s stock
display some fascinating fe a tu re s
which reflect market appraisal of fu­
ture expectations. The range of
price/earnings is substantial. The
range appears to have geographic
overtones. For example, the south­
ern banks, Citizens and Southern, and
the Wachovia Bank and Trust Com­

pany (at the time this is being writ­
ten) respectively are selling at 20.5
and 18.9 times earnings while Shawmut Association of Boston and First
National of Boston sell at p/e ratios
of 10 and 12.6. The big midwestern
giants, Continental Illinois with a 12.1
p/e ratio and the First National of
Chicago with an 11.5 p/e ratio, still
appear to share the adverse implica­
tions of the start-up costs of their en­
try into credit cards.
S & H Purchase Offer

Several esoteric developments have
affected prices of bank shares and call
for increasing study on the part of
bankers. For example, on July 3, 1968,
Sperry and Hutchinson Company, a
trading stamp company, made a $27
million offer of stock to obtain control
of the National Bank of Connecticut.
National Bank of Connecticut has 33
branches in 19 communities. Sperry
and Hutchinson is a conglomerate as
well as a trading stamp company. It
owns over 95 per cent of the stock of
Bigelow-Stanford, Inc., a carpet man­
ufacturer. There is a financial magic
in such tenders. Remember the p /e
ratios of the afore mentioned eastern
banks? When such earnings are
“taken into” conglomerates’ consoli­
dated statement they are typically
capitalized at a higer p /e ratio. The
“under capitalized” bank earnings are
“mixed” upward with the higher p /e
structure of the conglomerate and
this provides a probability that the
price of the conglomerate stock will
In another way, S & H is an inter­
esting company to academic theoroticians in money and banking. The con­
ventional definition (Mi) of “money”
has spread from simply currency and
demand deposits to include time de­
posits, S & L shares, etc. ( M 2 -4 ) . If
one accepts a “broad” ( M 5 ) definition
to include “any generally acceptable

(Turn to page 52, please)
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968


ere’ s a sam p lin g
of S e p te m b e r’ s
C hicago . . . a big, busy
city we’ve been growing
in — and helping to grow
— for over 86 years. We
hope you ’ll find it every
bit as exciting and fasci­
nating as we know it i s !


For after-dark entertainment, head for
Chicago’s Rush Street. M ore than a
mile of nationally-known nightclubs and
restaurants are there . . . each offering
the entertainment of night-life’ s greatest
stars. And don’t miss Old Tow n—
a quaint district of coffeehouses, pubs,
and intimate night spots.



Visit any of a score of intimate
productions that make
theater-going in Chicago a m ust!


You’ll find shopping at its best in
Chicago, with State Street’s department
stores, Michigan Avenue’s boutiques,
Old Tow n’s specialty shops and
antique row on W ells Street.

Two of the world’s finest museums are
just a short cab-ride away: The Field
M useum of Natural History and The
M u seu m of Science and Industry.
Or gaze at the stars in Chicago’s
world-famous Adler Planetarium, or
visit the Art Institute (famous for its
collection of French Impressionists and
Thorne Miniature R oom s).


And if you’d like a personally conducted
tour of our city’s sights, do it aboard
one of the many sightseeing boats that
anchor in our downtown river, weather
permitting . . . or take advantage of
a reasonably-priced bus tour.

e ’ ve only space for
a few of the m any
sights and sounds our city
has to offer. We hope
you ’ ll try to find the tim e
in your busy ABA sched­
ule to include th em . . .
and to enjoy Chicago as
m uch as we do !



Chicago’s long been known as a city of
fine restaurants . . . with culinary
specialties ranging from the sublime
to the very special. And you can enjoy
your fare in rooftop splendor— or
intimate spots where the service and
the solitude are especially relaxing!

A park-like setting hundreds of acres
wide makes Brookfield Zoo one of the
biggest— and best. Or stroll through
the Lincoln Park Zoo’s menagerie,
just outside the Loop.

lllW e s t M onroe Street, Chicago, Illinois 60690
Organized as N . W . Harris & Co. 1882, Incorporated 1907 • M e m b e r Federal Deposit Insurance Corporation • Federal R eserve System

N o r t h w e s t e r n B a n k e r , S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis





H . J. L A E R I



C. E. W A L K E R

R. M . N I X O N

H. H. H U M P H R E Y

Nixon and Humphrey Invited to
Address ABA
Chicago Is Site for 94tli Annual
Convention, September 29-October 2
HE presidential nominees of the two major politi­
cal parties—Republican Richard M. Nixon and Dem­
ocrat Hubert H. Humphrey—have been invited to
address general sessions of the 94th annual convention
of the American Bankers Association in Chicago this
month, it was announced by J. Howard Laeri, ABA
Mr. Laeri, who is vice chairman of the First National
City Bank of New York, also announced other details
of the convention, which will be headquartered at Con­
rad Hilton Hotel.
No confirmation had been received at press time from
either nominee of acceptance of the invitation, although
it was strongly felt both would be in attendance to ad­
dress the nation’s bankers. Mr. Nixon has been invited
to speak at the first general session on Tuesday, October
1. Mr. Humphrey has been invited to address the sec­
ond general session on Wednesday, October 2.
One of the final orders of business at the recent sec­
ond and concluding general session on Wednesday, Octo­
ber 2, will be the inauguration of new officers for the
1968-69 association year. Serving as vice president of
the ABA the past year and scheduled to succeed Mr.
Laeri as president is Willis W. Alexander, Jr., president,
Trenton Trust Company, Trenton, Mo. Treasurer is
Paul I. Wren, president, Old Colony Trust Company,
Other speakers at the general session on Tuesday will
include Mr. Laeri and Dr. Charls E. Walker, executive
vice president of the ABA.
Also speaking on Wednesday will be Andrew Heiskell,
chairman of the board of Time Inc., and co-chairman of
The Urban Coalition. His subject will be “Business and
the Urban Crisis.”




The four divisions of the ABA will meet on Monday,
September 30, and each will elect new officers.


Savings Division

Speaking before the Savings Division, which will meet
at 9:30 in the Grand Ballroom, will be Harry R. Mitiguy,
vice president of the Federal Reserve Bank of Boston,
and Dr. Donald H. McKinley, associate dean and profes­
sor of banking at Pennsylvania State University. Archie
W. McLean, president of the division and president, The
Planters National Bank and Trust Company, Rocky
Mount, N. C., will preside.
State Banks

The State Bank Division, meeting at 9:30 a.m. in the
Continental Room, will hear three speakers: J. L. Rob­
ertson, vice chairman of the Board of Governors of the
Federal Reserve System, Washington, D. C.; Frank
Wille, superintendent of banks, New York, and Profes­
sor Charles M. Williams, Harvard Graduate School of
Business Administration, Boston. Offering remarks will
be Philip Hewes, president of the National Association
of Supervisors of State Banks and bank commissioner of
Connecticut. Russell A. Blanchard, division president
and first vice president, Georgia Railroad Bank & Trust
Company, Augusta, will preside.
Trust Division

The Trust Division will meet at 9:30 a.m. in Private
Dining Room No. 2. Chalkley J. Hambleton, senior vice
president, Harris Trust and Savings Bank, Chicago, and
president, Trust Division of the Illinois Bankers Asso­
ciation, will give a report on trust advertising competi­
tion. Offering greetings will be Howard J. Johnson,
executive vice president of American Natonal Bank and
Trust Company of Chicago, and president, Corporate
Fiduciaries Association of Chicago. Presiding will be
Cecil P. Bronston, division president and vice president,
Continental Illinois National Bank and Trust Company,

National Banks


William B. Camp, Comptroller of the Currency, and
U. S. Representative William B. Widnall from New Jer­
sey, will address the National Bank Division in the
Grand Ballroom. Presiding will be Seward D. Schooler,
president of the division and president, Coshocton Na­
tional Bank, Coshocton, Ohio.

Advance programs for the workshops, which have
been increased from three to five, show that they will be
held concurrently beginning at 2:00 p.m. on Tuesday,
October 1. Subject areas include economic education,
agricultural credit, bank management, state and federal
legislation and competition in banking. (To next page)
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis






S. D. S C H O O L E R

A. W . M cC LE AN

C. P. B R O N S T O N

Workshop on Economic Education

Workshop on State and Federal Legislation

“The Importance of Economic Understanding in a De­
mocracy”—Allen Morgan, chairman, Board of Trustees,
A.B.A. Foundation for Education in Economics; presi­
dent, chief executive officer, First National Bank,
“How Much Does the Average American Learn About
Economic Principles?”—Vernon Alden, president, Ohio
“What Programs Are Now in Operation to Improve the
Teaching of Economics?”—M. L. Frankel, moderator,
president, The Joint Council on Economic Education,
New York.
Dr. Darrel R. Lewis, executive director, Minnesota
Council on Economic Education.
Dr. Donald M. Clark, director, Center on Economic
Education, Buffalo State College, New York.
Dr. Suzanne Wiggins, economic consultant, ContraCosta Public Schools; director, Center on Economic
Education, San Jose State College.
“What Can Bankers Do to Help Improve Economic Edu­
cation?” — Louis B. Lundborg, chairman, Bank of
America N.T. & S.A., member, Board of Trustees,
Foundation for Education in Economics.

Lewellyn A. Jennings, chairman and moderator; chair­
man, Federal Legislative Committee, A.B.A.; chair­
man of board, Riggs National Bank, Washington, D. C.
“ Financial Legislation in the 91st Congress”—John W.
Holton, Federal Legislative Counsel, A.B.A.
“Uniform Consumer Credit Code”—Panelists to be an­

Workshop on Agricultural Credit

“Credit Power for Agriculture” — Theodore D. Brown,
moderator, chairman, Agricultural Committee A.B.A.;
president, The Security State Bank, Sterling, Colo.
Panel Members:
Dr. L. L. Boger, chairman, Department of Agricul­
tural Economics, Michigan State University, East
Robert E. Hamilton, senior vice president, Central
National Bank, Chicago.
Monroe Kimbrel, president, Federal Reserve Bank of
Edward M. Norman, president, The First National
Bank, Clarksville, Tenn.
Workshop on Bank Management

“Bank Decision Making—Today and Tomorrow”—Chief
Executive Officer Richard D. Hill, president, First Na­
tional Bank of Boston.
Loan Officer—Harold J. Still, Jr., president, CentralPenn National Bank, Philadelphia.
Investment Officer—Edward R. McMillan, senior vice
president, National Bank of Commerce, Seattle.
Comptroller — E. T. Shipley, comptroller, Wachovia
Bank and Trust Company, Winston-Salem, N. C.
Marketing Officer—Edward C. Boldt, senior vice presi­
dent, Director of Marketing, First National Bank,
Outside Board Member—Arthur Jacobsen, treasurer,
J. C. Penney Company, Inc., New York City.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

Workshop on Competition and Monopoly in Banking

Wesley Lindow, chairman, executive vice president, Irv­
ing Trust Company, New York City.
“Market Structure, Public Convenience and the Regula­
tion of Bank Mergers”—Hon. Andrew F. Brimmer,
Board of Governors, Federal Reserve System.
“The New C’s of Credit: Conglomerate, Congenerics, and
the Clayton Act”—Gerald Fischer, professor, Temple
University School of Business Administration, Phila­
Charles F. Haywood, Dean, College of Business and
Economics, University of Kentucky, Lexington.
Merlyn N. Trued, senior vice president, Central Na­
tional Bank, Cleveland.
Rex J. Morthland, president, Peoples Bank and Trust
Company, Selma, Ala.

“Up With People,” a vocal and instrumental musical
presentation, will occupy the traditional Tuesday eve­
ning entertainment and is scheduled for the Interna­
tional Ballroom of the Conrad Hilton Hotel.
“Up With People” is a troupe of 200 young men and
women who present a musical program planned as an
affirmation of American ideals. An outgrowth of the
Moral ReArmament movement, “Up With People” tours
the country, singing at conventions, colleges and military
bases. They have also performed on network television
and toured in foreign countries.
Other convention entertainment features will include
the traditional ladies’ luncheon and a reception for all
Foundation Meeting

Nationally syndicated humorous newspaper columnist
Art Buchwald will speak at the annual meeting of the
Foundation for Commercial Banks on Saturday, Septem­
ber 28, at the Conrad Hilton Hotel in Chicago, Richard
B. Beal, Foundation executive vice president, announced.
Mr. Buchwald will comment on national politics and
the Presidential election at the Foundation’s fifth annual
The Foundation, which is celebrating its 10th anniver­
sary this year, will also present a report on its current
$2.5 million national advertising and promotion program
at the meeting.



These are the people o f the
Ruston State Bank & Trust Company o f Ruston, Louisiana

This is
“their office” in

Y o u ’ll see Louisiana Tech students and a
representative of the lumber industry with the
Ruston bankers above. Both are important to
the Ruston State Bank & Trust Company—the
bank that gets things done in this community.
A nd, to get things done in New Y ork or
throughout the world, the people of the Ruston
State Bank rely on their correspondent rela­
tionship with Citibank. It’s their New York
“ office” for a broad range of banking and
related services.
If you’d like to get things started with Citi­
bank, write our Correspondent Bank Depart­
ment. Or call 212-559-4832.

Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 196&


Your Hosts in Chicago
HIEF executive officers and representatives of the
correspondent bank departments of Chicago banks
will be hosts to the more than 10,000 bankers and wives
who are expected to attend the 94th annual convention of


the ABA, September 29 through October 2.
The men from Chicago’s nine major correspondent
banks who serve bankers in upper midwest and mountain
states are pictured on the following three pages.

C on tin en tal Illin ois N a tion a l

L aS alle
N a tion a l B a n k
AMONG the LaSalle National officers who
will greet ABA guests are: Harold Meidell,
chmn.; Milton F. Darr, Jr., pres.; C. Ron­
ald Fairs, sr. v.p., bond dept.; Max L.
Baughman, sr. v.p., internatl. dept, and
Cyrus D. Kirk and Max Roy, v.p.’s in the


correspondent group.




M . F. D A R R , JR.

C. R. F A I R S

M . L. B A U G H M A N

DISCUSSING staff plans with Tilden
Cummings (seated), pres, of Continental

Illinois National B&T, concerning their
bank’s role as a host at the ABA conven­
tion are (left to righ t): Lawrence H.
Frowick, v.p.; Robert C. Suhr, sr. v.p.,
natl. division, and William H. Grove, v.p.
Mr. Frowick and Mr. Grove are in Group
E of the natl. division, which is headed by
Richard C. Rastetter, v.p. A member of
Group G of the same division is James P.
Johnson, v.p. These two Groups serve
banks in the N orthwestern B anker area.
N o r t h w e s t e r n B a n k e r , S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


J. P. J O H N S O N


D . K IR K



A m erica n N a tion a l H an k & T ru st

fo r A HA
N o rth ern T ru st
C om pa n y

Northern Trust at
the ABA conven­
tion will be these
officers who serve
correspondent bank
cu stom ers. They
are: D o ug l as R.
Fuller, pres.; Robert
E. Hunt, exec, v.p.;

THE TEAM of correspondent bank officers

Robert P. Kline,
and Don W . Hum­
mel, v . p . ’ s; John N.
d . R. F U L L E R
Fix, 2n d v . p . ; Stephen White, a.c.,
Thomas W. Walvoord, di v . asst.

an d

of American National are shown here with
two senior officers of the bank. Seated,
left to right, are: John H. Baldauf, v.p.,
and head of the correspondent bank divi­
sion; William O. Kurtz, Jr., now sr. v.p.
and former head of the department, and
Allen P. Stults, pres., whose appointment
by the board as chief executive officer was
announced last month. Standing are, left
to right, William J. Davis, a.v.p.; Douglas
C. Mills, a.c., and Gerald G. Morse, Robert
J. R. W E S T
G. H . S P E N C E
O. Walcott, William B. Aldrich and W.
David Milligan, all a.v.p.’s. Not present for this group picture, but shown separately,
are J. Roy West, a.v.p., and George H. Spence, ag officer.

H a rris T ru st a n d Savings H ank

R. E . H U N T

R. P. K L I N E

D. W . H U M M E L

J. N . F I X

THREE of the Harris Trust and Savings Bank officers who will
act as hosts for their bank during the ABA convention are (left
to right): William F. Murray, pres.; William W. Howell, a.v.p.
who services corporate accounts in the midwest, and David L.
Webber, v.p. and head of the correspondent bank dept. One of
the veteran members of the correspondent dept, who is known
to many bankers is Gilbert J. Mc^wen, a.v.p.


S. B . W H I T E
Federal Reserve Bank of St. Louis

T. W . W A L V O O R D

G. W . M c E W E N

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968


D r o v er s N a tion a l D ank

F ir s t N a tion a l
H an k
R. L O U G H

board and chief ex­
ecutive officer of
the First National
Bank of Chicago is
Homer J. Living­
ston. Head of Divi­
sion F, banks and
bankers, is William
T. Dwyer, v.p. In
charge of the North­
west D iv is io n is
H. J. L I V I N G T S O N
Nevin G. Bowser,
v.p. Serving with him are Raymond V.
Dieball and Andrew J. Nielo, a.v.p.’s, and
Clarence E. (Bud) Cross, Jr., a.c. First
National’s Bennett E. Hauenstein, v.p.,



B. D. M I L L E R

L. E. M A K O B E N

SINCE Drovers National is the only bank in Chicago’s famed stockyards complex, these

four men and the staff of the bank keep in constant touch with bankers in Iowa, Illinois
and neighboring states where livestock is a major industry. President of the bank is
Robert Lough. Head of the division serving banks is Fred D. Cummings, v.p. Serving
banks in Iowa and Illinois are Bernard D. Miller, v.p., and Larry E. Makoben.

V en tra l N a tion a l D ank

maintains close liaison with many area
banks through his duties as head of the
bank’s agriculture department.

HEADING the group of officers who will welcome visiting bankers at the Central Na­

tional Bank hospitality suite during the ABA convention are these officers (left to
right): Howard H. Beermann, v.p.; Robert J. Norrish, a.c.; Robert E. Hamilton ,sr. v.p.,
and Frank E. Bauder, pres.

W . T. D W Y E R


N. G. B O W S E R

B. L. H A U E N S T E I N

N a r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

N a tion a l D on leva ril D ank

REVIEWING the special invitation mailed to correspondent bank customers of National
Boulevard Bank to visit their hospitality suite during the ABA convention are: Francis
Wagner (left), v.p. and head of the correspondent department; Irving Seaman, Jr.
(center), chief exec, off., and Hans W. Wanders, pres.


run a railroad


At Manufacturers Hanover, our National Division officers'
number one job is working with you to get things on the
right track. It's a job that calls for imaginative cooperation — and
it gets you where you want to go.

John J. Evans, John F. King, George R. Bennett, Carl G. Carlson, Nathaniel S. Howe, Jr.,
Russell H. Eichman, Frederic J. Sears, Thomas I. Chatfield’s good to have a great bank behind you

Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n ke r, S e p t e m b e r , 1968

S A 14-YEAR-OLD high school­
er, Willis W. Alexander, Jr., at­
tended his first American Bank­
ers Association convention in 1933
with his father, Willis, Sr., and his
brother, Maurice, at the former Stev­
ens Hotel (now Conrad Hilton) in
Chicago. This month, just 35 years
later, he will return to the Conrad
Hilton in Chicago for the ABA’s 94th
annual convention, where he is sched­
uled to be advanced from vice presi­
dent to president of the association.
In the three and one-half decades
since his first convention, Willis W.
Alexander, Jr., has fashioned a dedi­
cated career of service to his bank, his
community and the banking industry
that has equipped him well for his
forthcoming role as the leader of the
nation’s commercial banks.
From his father (who died several
months ago), Willis learned first-hand
that banking provides a unique op­
portunity to serve people in more
ways than probably any other type of
business. His father was president
of the Missouri Bankers Association
in 1934-35 and exactly 25 years later,
Willis followed him in that position
for the 1959-60 term. He joined his
father in the Trenton Trust Company
at Trenton, Mo. (pop. 7,500) in 1947
after serving six years in the Navy
Supply Corps during World War II.
In 1960 he succeeded his father as
president of the bank. At mid-year,
Trenton Trust Company had assets of
During his years of service to the
Missouri Bankers Association, Willis
headed up the committee that estab­
lished the Robert E. Lee Hill Chair of
Banking at the University of Mis­
souri. This was named for the man
who had served the MBA faithfully
for many years as secretary. The
chair presently is held by Dr. Lewis
E. Davids, who authors a monthly
financial article for the N orthwestern
B anker and who also just completed
writing a history of Missouri banking.
Willis Alexander wrote the preface
for this book.
In addition to his work at the state
level, Willis has served on the facul­
ties of the Central States Graduate
School of Banking at the University
of Wisconsin, Madison, and at the
Banking School of the South at Baton
Rouge, La. He served on the credit
union and uniform tax treatment com­
mittees of ABA before being elected
vice president of ABA at the conven­
tion last year.
Willis Alexander is a native of
Trenton, where he was born January
2, 1919. His brother, Maurice, is with
Merrill Lynch, Pierce, Fenner &
Smith investment firm in Kansas City.



N o r tfor
e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

Alexand• •/#*.






PICTURED before the fireplace in the living room of their beautiful home on the shore
of a small lake at Trenton are Willis and Doris Alexander with their two daughters,
Patricia (left) and Barbara. Their son, Eric, who is in Vietnam with the Navy, is

pictured separately.

His sister, Mrs. C. L. Brewer, lives in
He was graduated from the Univer­
sity of Missouri College of Business
Administration with a B.S. degree in
1940, and received his M.B.A. degree
in 1941 from the Wharton School of
Finance in Philadelphia. It was there
he met Doris Vosburg, a native Phila­
delphian, and they were married June
20, 1942.
The Alexanders have one son and
two daughters. Eric W. 24, is a Lt.
j.g. in the United States Navy and
went to Vietnam three months ago
as pilot of a helicopter gunship in
the Mekong Delta
area. Barbara, 18,
will be a fresh­
man at the Uni­
versity of Mis­
souri in Colum­
bia this fall. Pa­
tricia, 16, will be
a sophomore at
Trenton High.
Willis Alexan­
der has traveled
L t. j.g .
th r o u g h o u t the

United States addressing bankers’
meetings and has had an opportunity
to discuss many problems and proj­
ects with individual bankers. Among
the most important questions bank­
ers must resolve, he believes, are
those pertaining to the changing
structure of banking itself, the future
of country banks, and its related sub­
ject of the future of small towns.
In regard to the pointed discussion
of the day on banking structure, he
“ I would endeavor to encourage
banking to adapt itself to changing
public requirements and needs to the
end that it can serve the economy
and community development. Yester­
day is not good enough. The status
quo is unsatisfactory. Our eyes must
be on tomorrow, for the needs of the
public will be made known by the
public and not by bankers.”
Speaking directly to the matter of
structural changes in banking, Willis
Alexander states: “ It is unrealistic

(Turn to page 46, please)






©1967 Public Building Commission
of Chicago. All Rights Reserved.

W h a t is it?
It’s the w orld’s m ost provocative sculp­
ture designed fo r Chicago by Picasso.
Is it a d o g ? A lion? A lady?
Only you can answer that question.
However, these men from the City can
provide the answers to your corres­
pondent banking problems.
T h ey’re looking forw ard to seeing you
at the A .B .A . Convention in Chicago.

R. Crosby Kemper, Jr.

Charles G. Young, Jr.

Samuel A. Blasco

George William Sherman

John J. Kramer

Cha'les W. Koester

Roy A. Thompson

Van W. Cooper

National Bank
& Trust Company
Kansas City, Missouri
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, September, 1968


(Continued from page 44)
to say that any form of banking —
whether unit, branch, holding compa­
nies, etc.—is forever hallowed. It is
good so long as it serves the public
need. When it doesn’t, it must change
to meet that changing public need.
In my judgment, the unit bank can
still serve the community need, but
it must run with its focus on the fu­
ture, rather than on the past.
“Evidence has shown that unit
banks cannot only survive but serve
even better in competition with
branch and holding company banks
because they are forced to be compet­
itive. If you want to survive, you
can, and we don’t need to legislate
protective boundaries for ourselves.”
The common thread of philosophy
that runs through Willis’ thinking on
this and other important subjects is
that there is “no future in the status
He believes the local banker to be
everyman’s economist. He notes that
the ABA is preparing a continuing
program, to start soon, of providing
every bank with a one or two sheet
explanation of economic problems,
and these will assist the local banker
in getting a capsule summary of the
current problem as well as needed
but brief facts and projected answers
or solutions.
This need for the local banker to
be an “answer man” and a leader in
the community is one that Willis
Alexander believes in strongly. It
ties in with his belief that only
through intelligent, aggressive lead­
ership will the “country” bank and

town be able to compete equitably
and survive.
In his opinion, size alone is not a
detriment or handicap. It’s whether
the small town banker wants to
move with the changing times and
pace of business. The small banker,
Willis states, can innovate far easier
and more quickly than a large bank.
It can make a mistake and find out
what it tried is really wrong, then
have the facility to adjust and adapt
fast. Policy is a merit up to a point,
he emphasizes, and then it can be­
come handcuffs. He says:
“ The banker who is an innovator
is the one who takes the heat!”
In regard to serving farm opera­
tors, Willis says emphatically that
dealing with this segment of country
bank business should be no different
than servicing commercial accounts.
He outlines his philosophy of serving
country bank business this way:
“Country bankers should recognize
the 15-25 per cent of the farmers they
can live with for the next five to 15
years to come, and go with them.
Schedule in one year of failure and
stay with them. Certainly, we must
serve the needs of other farmers but
don’t devote the same amount of time
as with the others who will be the
heart of your business.
“The banker must make a judg­
ment as to whether he can help an in­
dividual make money. If he can’t,
he’s better off demurring at the start.
The same holds true for business
credit, so why any difference?”
Recognizing that city correspond­
ent relationships are an integral part
of today’s s u c c e s s fu l commercial
banking system, Willis Alexander

CONFERRING with Willis Alexander are three mem­
bers of the well-trained team he relies on to manage
the Trenton Trust Company while he is away on ABA
business. Left to right, they are: Edward E. Holt,
and Curtis LaFollette, v.p.’s, and George Constant, v.p.
and t.o. Painting on wall is of Willis W. Alexander,
Sr., who died several months ago.




THE SKIPPER was snapped with tele­
photo lens by the N orthwestern B anker
as he enjoyed one of his favorite sports at
a regional meeting of the National Asso­
ciation of Supervisors of State Banks at
Brainerd, Minn., last month.

stresses another point. “A corre­
spondent relationship must be de­
served and earned. For example, if
I want my correspondent to take care
of my overlines, I must be willing to
maintain balances and use his facili­
ties—investment advice, counsel, ex­
pertise. The country bank must sell
overlines that are worthy. This is a
two-way street.”
What about the legitimate credit
needs of the farmer—are they being
taken care of by country banks? Wil­
lis’ answer to this is “Yes.” He adds
for the record, “Just because farmers
want, or farm-related industries say
they want it, doesn’t make it a real
credit need. It’s the same as business
credit—if the farmer can’t respect his
credit standing, he’ll lose it.”
Willis Alexander has a long string
of community service credits to his
name. In referring to a banker’s ob­
ligation to serve his community, he
quotes James E. Shelton, who was
president of the American Bankers
Association a decade or so ago. (Mr.
Shelton was then president of Secu­
rity First National Bank, Los Ange­
Jim Shelton used to say, Willis re­
calls, “ ‘Service is the rent you pay for
the space you occupy on the earth,’
and that includes service to our fellowman, to our church, to education,
the community, profession or governW IL L IS A L E X A N D E R . . .

(Turn to page 73, please)
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis










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Microfilmer is operating efficiently . . . is
producing images of consistently high
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specialist takes prompt corrective action.
Recordak systems specialists are also
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But Total Systems R esponsibility
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Microfilm Systems by Kodak
N o r t h w e s t e r n Banker, S e p t e m b e r ,
Federal Reserve Bank of St. Louis



Reserve Reform and Rankinfi


P r e sid e n t
T r e n to n

T ru st

T ren to n ,

C om pany

M isso u r i

V ic e P r e sid e n t
A m e ric a n

■ In his address titled "Reserve Reform and the Banking Struc­
ture," given recently at the Southwestern Graduate School of
Banking at Southern Methodist University in Dallas, Texas, Mr.
Alexander discussed a proposal by the Board of Governors of
the Federal Reserve System to change reserve requirements.
This proposal as originally presented was two-pronged — the
first was to change the percentage method of computing the
reserves and eliminating the traditional "city" and "country"
bank designations, and the second was to require all insured
banks to carry reserves with the Federal Reserve System. This
article deals primarily with that part of Mr. Alexander's talk
covering the proposed requirement for all insured banks to
carry reserves with the Fed and its inherent threat to corre­
spondent banking and the dual banking system.

HE Federal Reserve proposal goes much beyond
simple reform of the existing percentage require­
ments; it contemplates inclusion of nonmember
banks within the proposed new reserve structure, both
with respect to required rates and to holding balances
with the Federal Reserve. It is this aspect of the pro­
posal which raises very serious questions for the contin­
uation of the dual system of banking. Certainly, im­
provement in existing requirements can be accomplished
within the membership of the Federal Reserve System,
and by the states individually with respect to nonmem­
ber banks. This can be done without extending Federal
requirements to nonmember banks.
What are the reasons advanced for imposing Federal
Reserve requirements on some 7,500 nonmember banks?
First, and most importantly, it is maintained that this
will give to the Federal Reserve better control over the
reserve base and thus assist it in carrying out monetary
It is further argued that an inequity results from the
fact that nonmember banks are not subject to the re­
serve burdens of Federal Reserve member banks.
It is stated by Governor Andrew Brimmer and others
that to include all banks within existing requirements is
not a new proposal and that, in any event, nonmember
banks would not be required to join the Federal Reserve
Other arguments are sometimes advanced, such as the
claim that because all commercial banks hold in the form
of deposits the bulk of the nation’s money supply, and
as commercial banks comprise the mechanism through
which money is created, there is a responsibility or obli­
gation to have their reserves under the control of the
central bank.


Not a Convincing Case

Frankly, the case is not very convincing. There is no
clear evidence that the ability of the Federal Reserve to
implement monetary policy is handicapped by the fact
that many banks choose not to be members. All nonN o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

B a n k e r s A sso c ia tio n

member banks combined hold only about 17 per cent of
the deposits in the commercial banking system. We
know from observation alone that in periods of mone­
tary ease or stringency nonmember banks react in much
the same fashion as member banks of similar size. This
must be so in a banking system such as ours, with its
extensive correspondent relationships, since no nonmem­
ber bank can afford for long to go against the tide when
the Federal Reserve seeks to expand or contract bank
As a matter of fact, I should think that the 1966 expe­
rience provides the final refutation to this particular
argument for extending Federal requirements to all in­
sured banks. If ever there was a demonstration of the
magnitude and scope of the impact of Federal Reserve
authority we had it at that time. The effects of the
monetary squeeze were felt throughout the entire bank­
ing system and, indeed, by institutions quite remote
from direct Federal Reserve authority, most notably sav­
ings and loan associations and mutual savings banks.
The charge that the present reserve system is inequi­
table because member banks in many instances carry a
heavier burden than competing nonmember banks de­
serves attention. There is no disputing the fact that differences do exist, not only with respect to percentage
requirements but also because of the place in which re­
serves may be kept. For example, a nonmember bank
may count its correspondent balances as part of its re­
serve, whereas aside from vault cash a member bank can
only count balances kept with its Federal Reserve Bank.



Inequity Depends on Viewpoint

Whether or not this difference is inequitable, however,
depends on the manner in which all of the many regu­
lations and limitations on banking are viewed. There is
a strong voluntary element in the American banking
structure, so that banks may choose their charter (nation­
al or state) and thus the set of laws (Federal or state)
under which they will operate; may join or remain out­
side of the Federal Reserve System (if a state bank); may
convert from one charter to another; may choose deposit
insurance or remain uninsured. Because of the various
options just mentioned they may, in effect, select the
particular regulatory agency to which they will be sub­
ject. The matter of reserve requirements is only one
of many factors which any bank must consider in reach­
ing a decision with respect to its charter. Once made,
such a decision immediately gives rise to a variety of
differences. Thus a national bank may be at a disadvan­
tage relative to a state nonmember bank with respect to
reserve requirements, limits on loans to ©ne borrower,
and capital requirements but, at the same time, may be







in a relatively better position than the state nonmember
bank with respect to the operation of subsidiary corpo­
rations, direct leasing, payment of sales tax, or doing
business in other states. Any particular authority, or
limitation thereon which gives rise to a difference be­
tween banks can be characterized as “inequitable,” but
such a view is not very realistic when placed in broader
It is true, of course, that there are certain fundmental
limitations on banking which must be essentially the
same for all classes of banks if there is to be approxi­
mate competitive quality. Branch banking limitations
provide a good illustration, but it is quite doubtful that
the same is true of reserve requirements. It is inter­
esting to note that the majority of state banks convert­
ing to national charter over the past several decades
have been banks which were not members of the Fed­
eral Reserve System, thus indicating that differences in
reserve requirements may be less significant than one
might suppose, given the advantages which converting
banks obviously see in national charters and member­
ship in the Federal Reseve System. If in fact member
banks are disadvantaged because of reserve require­
ments then perhaps a change is needed but there is no
reason why such a change cannot be made by the Fed­
eral Reserve with respect to its own member banks.
Adverse Effect on Correspondent Banking


The need for a more convincing case for the Federal
Reserve plan is evident when we consider some of its
possible manifestations. Few would deny that its impo­
sition would substantially reduce the volume of inter­
bank balances. Proponents of the plan seem to suggest
that this is relatively unimportant, particularly if it is
offset to some extent by lower requirements.
But the shrinkage of the correspondent system is not
so easily dismissed. The correspondent system makes
possible the utilization of equipment and techniques not
otherwise feasible, contributing to both internal and ex­
ternal economies of scale for the city correspondent.
The resulting benefits are shared by the city and country
For small nonmember banks in particular the shift of
balances to Federal Reserve Banks might well create a
severe problem. Through balances now held with city
correspondents, smaller banks are able to obtain needed
services not otherwise available. A shift of a substantial
portion of present balances to Federal Reserve Banks
could lead to higher cost and fewer customer services,
thus making small banks less profitable and less competitive.
power Reserves Not Assured
I realize, of course, that the institution of a new re-

serve system could be combined with a significant reduc­
tion in reserve requirements, thus offsetting to some
extent the impact both on the large correspondent banks
and on the need for smaller country banks to draw down
their correspondent balances. While it is an interesting
mathematical exercise to compute how much could be
saved, it is not at all clear that the level of reserve re­
quirements will in fact be significantly lower.
Certainly we know that there are those in Congress
who would vigorously oppose any significant reduction
of reserve requirements. Moreover, it is evident that
even if requirements are reduced and banks receive
what amounts to a reserve windfall, the Federal Reserve
could not permit an undue credit expansion and thus
would have to take away through open market opera­
tions what it might appear to be conceding in terms of
specific requirements. In short, I fear that lower re­
serve requirements, while perhaps sincerely desired and
advanced as an argument on behalf of this plan, would
in the final analysis turn out to be illusory.
Another important implication of the Federal Reserve
proposal is its possible effect on the Federal bank regu­
latory structure. I believe I speak for the majority of
bankers when I say that centralization of all Federal
bank regulatory authority in a single agency would have
severe consequences for our dual system, and yet it is
precisely in this direction that the reserve proposal may
lead us.
It seems to be quite obvious that if nonmember banks
are required to keep reserves on deposit with Federal
Reserve Banks at levels identical with member banks
that there would then be little further reason for re­
maining nonmembers, particularly when by entering the
system they could benefit from some of the additional
services which accrue to members. I would anticipate
under these circumstances that a very large number of
banks presently in the nonmember category would con­
vert to membership. If so, this means that they would
leave the direct supervisory responsibility of the FDIC.
Two Aspects to Consider

The eventual outcome of the extension of reserve re­
quirements to the nonmember banks would, therefore,
have two aspects.
First, it would quite effectively remove the FDIC from
the Federal supervisory picture, perhaps taking the first
step in an eventful consolidation of supervisory powers
into one agency.
Second, it would probably result in a substantial num­
ber of conversions to national charter, thus further up­
setting the balance inherent in the dual system.
The Federal Reserve Board has fulfilled one of its re­
sponsibilities to the American economy in proposing
changes in reserve requirements. This proposal recog­
nizes that the function of reserves has changed, and that
possibly a lower level will permit the banking system
better to serve the needs of the economy.
Not so welcome, nor so universally acceptable, is the
strategy of piggy-backing the basic reform proposal with
other conditions essentially unrelated, which carry un­
mistakably the seeds of centralization of the American
banking system.
Our unique decentralized system has served well the
public interest. It may lack the organizational sym­
metry so dear to the planner’s heart. To its credit, it
has functioned to provide a banking system innovative
and responsive to other changing needs.
Reserve requirement reform is one issue; centraliza­
tion through de facto mandatory Federal Reserve mem­
bership is quite another. Each must be examined on
its own merit.—End.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


Bank Building Appointments
President William F. Cann has an­
nounced the promotion of Joseph S.
Drachnik to the new post of training
director for new personnel, and the
appointment of William E. Wilkinson
as manager of estimating.


For more than half a century, businessmen
have relied upon our full commercial cover­
ages that have kept pace with business and
industrial growth. W e’ve always been Num­
ber 1 in Workmen’s Compensation in the
State of Iowa.
Today, more and more businessmen are tak­
ing advantage of our personal coverages that
dovetail with our business coverages— life,
health, auto, homeowner.
W h y? Because it saves money both ways!
It’s more convenient, too. All your insurance
problems are handled with the efficiency of
business, but with the personal touch of our
4,000 agents nationwide.


Employers Mutual Casualty Co. • Emcasco Insurance Co.
Employers Modern Life Co.

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis



J. S. D R A C H N IK

Mr. Drachnik has been with the St.
Louis firm since 1955, serving four
years as a mechanical engineer and
then as research director, a post in
which he will continue along with his
new position. Mr. Drachnik, who
earned a degree in mechanical engi­
neering at Washington University in
St. Louis, is also first vice president
of the Construction Specifications In­
stitute and a councilman for Ameri­
can Standard Testing Materials.
Mr. Wilkinson has been with the
systems group of TRW, Inc., Los An­
geles, since 1962. Prior to that he was
with Westinghouse Electronic Corpo­

Commerce Bancshares Buys
Two Missouri Banks
James M. Kemper, Jr., president of
Commerce Bancshares, Inc., of Kan­
sas City, Mo., has announced that the
Mechanics Bank of St. Joseph and the
Citizens National Bank of Kirksville
have signed contracts of affiliation
with the new holding company.
The Mechanics Bank has assets of
$25 million, and the Citizens National,
$10 million, which increases Com­
merce Bancshares’ total assets to $700
The agreement with the Mechanics
Bank calls for the exchange of 25
shares of Commerce Bancshares for
each 2,000 shares of Mechanics Bank
stock. The agreement with the Kirks­
ville bank calls for the exchange of
eight shares for each 2,000 shares of
Citizens National stock. Both trans­
actions are subject to approval of the
Federal Reserve Board, and are con­
tingent upon Commerce Bancshares
acquiring at least 80 per cent of the
stock of each bank.
The holding company, organized
two yaers ago, now has six member
banks with the new acquisitions.
Commerce Trust Company of Kansas
City is its primary banking affiliate.


How The Rescue Money gallops ahead
of all other travelers cheques
to give your customers on-the-spot refunds.
We call American Express Travelers
Cheques The Rescue Money, be­
cause, like the Cavalry of the Old
West, we go to extraordinary lengths
to rescue tens of thousands of trav­
elers in distress every year.

We make our own refunds.
American Express has a worldwide
network of hundreds of offices and
representatives where we make our
own refunds. They are staffed with
people who are trained, paid and
whose main job is to serve travelers
and make Travelers Cheque refunds.
In English.
Notice we underscore the word
make. That’s because some travel­
ers cheque issuers boast about their

worldwide network of selling agents
who are “ authorized” to make re­

Is “authorized” enough?
What happens if the “ authorized”
agent doesn’t even know he is “ au­
thorized” ? Or isn't fam iliar with the
procedure of making refunds? Or
isn't interested in making refunds?
Or doesn’t even speak English?
This could create serious prob­
lems for your customers. Also, with
an “ authorized” refund system, the
selling agent is expected to handle
all the tedious paper work. This can
really eat up time and keep you from
more profitable banking business.


Our refund system doesn’t tieyou up.
American Express doesn’t ask you
to take on the time-consuming, trou­
blesome and u n p ro fita b le job of
making refunds to non-customers.
All you’ re expected to do is make a
profit selling American ExpressT ravelers Cheques.
t h e m o r a l : Y o u don’t have to
worry about your customer when he
carries American Express Travelers
Cheques. When he needs a refund
to rescue his tr ip, you can be sure
he'll get one.
Only American Express can make
this promise. After all, when it comes
to serving your customers — nobody
gallops as fast as we do.


American Express Travelers Cheques — The Rescue Money
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


ttaiik S tock P r ic e s


(Continued from page 35)
medium of exchange,” a rational argu­
ment could be made that S & H al­
ready is creating money (M5) and
through the “float” on redemption of
the ubiquitous stamps is exercising
the “goldsmiths” principle of multiple
expansion (via fractional reserves).
When one recognizes that S & H had
stamp service revenue of over $300
million in 1967 it can be appreciated
that its bid for National Bank of Con­
necticut raises some very provocative
facets as to the changing structure of
Holding Company Flexibility

On the same day S & H made its
stock tender, the innovative First Na­
tional City Bank of New York an­
nounced that it plans to form a onebank holding company. It also would
seek listing on the New York Stock
The reasons are cogent, and in line
with the realities of the market place.
The financial magic desired is diversi­
fication. First National City could
then do some of the things S & H can
and does do.
A single bank holding company can,
under present federal and state regu-

lation, perform under the general
laws which cover businesses and thus
obtain greater flexibility than banks
now possess. For example, the hold­
ing company could without bank reg­
ulatory control establish subsidiaries
to accommodate the bank’s equipment
leasing, to handle the growing field of
travel accommodations, computer op­
erations, factoring, management sci­
ence, etc. It also, with a slight bit of
legal sophistication, could obtain in­
surance companies and tie these into
its over-all operations.
Independent of the banks’ rapidly
changing c o m p e titiv e structure, a
number of insurance authorities are
now anticipating that federal rather
than state control may be in the of­
fing for the insurance industry. A
few years ago this possibility would
have been most unlikely. The rea­
sons are complex, but one very sig­
nificant factor is the trend of insur­
ance companies acquiring one another
and also converting like banks into
holding company type conglomerate
Problems for Directors

When the preceding developments


T H E W H I T E - P H I L L I P S C O . , IN C .
Phone 326-2527

Teleptype 319-322-0026

Fleming Bldg.

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

Two Promoted at Talcott
Two members of the Chicago dis­
trict office of James Talcott, Inc., have
been advanced, according to Orville
R. Johnson, vice president and dis­
trict manager. Laurel A. Haney was
named manager of the equipment
finance and leasing department. Mr.
Haney joined Talcott in 1961. Bern­
ard J. Clancy was promoted to man­
ager of business development in the
equipment finance and leasing depart­

Naperville Firm
Installs EDP System
Associated Data Services, Inc., of
Naperville has recently installed a
Burroughs B300 electronic data proc­
essing system valued at $400,000.
A.D.S. is a cooperative of five sub­
urban banks which previously used
the data processing service of their
correspondent banks in Chicago. The
system is now handling demand de­
posit accounting, savings, installment
loans and other customer services.


First N ational Bldg.

are appraised along with Representa­
tive Wright Patman’s July, 1968, study
comprising two volumes of 2,000 pages
on director “links” and trust depart­
ment holdings of banks and the in­
creased interest shown by the Justice
Department in severing directorships
under the Clayton Anti-trust Act, it
appears that all bankers who serve on
b o a rd s of co m m e rcia l companies
should re-examine their relationship
to insure that they do not inadvertent­
ly violate the Act.
Like it or not, banks and insurance
companies are correctly interpreting
a firmer stance by the Justice Depart­
ment on conflicts of interests on the
part of directors.
It would be unfortunate for society
if the value of the broad and diversi­
fied, mature judgment of outside di­
rectors should be whittled down as a
result of the trends toward holding
companies—and the counter reaction
of the Justice Department.— End.

Phone 282-1456

W ilson, Kidd Chair
Chicago Fund Drive
Christopher W. Wilson, executive
vice president and cashier, The First
National Bank of Chicago, and Alan
Kidd, vice president, Northern Trust
Company, were named last month as
co-chairmen of the banking section of
the 1968 United Settlement Appeal.
Now in its seventh year, United
Settlement Appeal supports 45 agen­
cies, members of the Chicago Feder­
ation of Settlements and Neighbor­
hood Centers. Goal of the campaign
is $385,000; the share designated for
Chicago banks amounts to $5,000.


What makes us different
in New York
can give your bank
an edge.

In a city of banking
giants, consider the
advantages of a
relationship with the

Bank of New York.
As a banker, now more than ever, you
must be able to meet the exacting
needs for information and assist­
ance desired by your custom ers,
whether corporate or trust.
That’s why an i n v e s t m e n t - o r i e n t e d
bank on your team can give you an
edge. By i n v e s t m e n t - o r i e n t e d we
mean knowing and thinking “ invest­
ments" as well as “ banking" and ap­
proaching our customers’ financial
problems on the basis of a complete
and in-depth analysis and evaluation
of the total investment picture. As a
matter of fact, The Bank of New York
devotes a greater proportion of its
revenues and talent to investment
skills than any other major New York
commercial bank.
You’ll also find that The Bank of
New York provides every expected
correspondent service — with unex­
pected care, thoroughness, and per­
sonal attention. Remember, at The
Bank of New York we have never con­
fused bigness with excellence.
Shouldn’t our difference make a
unique difference for you? We think

The Bank of New York
New Y o rk's F irst B ank • Founded 1784
by A le x a n d e r H a m ilto n
M ain O ffice: 48 W all Street

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


keeps m oney
moving in
Twin Cities

Money in motion knows no boundaries
M oney in the Twin Cities area is vital, restless, on the go. And the
financial freeways are wide open to let it reach and energize every por­
tion of the Twin Cities market and the vast Ninth Federal Reserve
District beyond.
The Twin Cities are the financial center for the seven-state Federal
Reserve District. The Federal Reserve Bank and the Farm Credit
Banks are headquartered here, and so are the three largest commercial
banks in the district. They are the Northwestern National Bank, First
National of Minneapolis and the First National Bank of Saint Paul,
with resources to pace our flourishing economy.
The financial demands of this growing metropolitan community no
longer draw lines between cities or counties or states. Thus, money
from a Saint Paul bank can finance the construction of a parking ramp
in Minneapolis. And vice versa.
M oney in motion knows no boundaries.
First N ational Bank of Saint Paul is dedicated to serving the
changing financial needs of a dynamic Twin Cities metropolitan com ­
munity. For First National of Saint Paul, there are no limits—city or
otherwise— to the economic growth of the Twin Cities area.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


First National Bank of Saint Paul
Member Federal Deposit Insurance Corporation
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 196S


The Bankers’ M arket 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.
NEW eight-zone monitor that
provides continuous survelliance
of up to eight doors or groups of
doors from a single, central point has
been developed by Mosler, Hamilton,
Designated Mosler Model DSM-8, the
monitor is used in conjunction with
magnetic door switches and local
alarm bells to authorize or monitor
the opening of fire, loading, exit and
other doors. Any unauthorized open­
ing produces an audible buzzing
alarm and a visual indication of entry
on the monitor panel and an optional
bell at the doorway. An intrusion or
circuit alarm is indicated by red
lamps on the panel. Amber lamps sig­
nify authorized access.
The monitoring circuits can be used
as part of a night alarm system. A
single, key-operated switch on the
panel transfers the monitoring cir­
cuits from their day function as an
annunciator system into additional


night protective circuitry as an inte­
gral extension of a premise alarm
Further information is available
from Mosler Electronic Systems Divi­
sion, 9 South Street, Danbury, Conn.
save 45 per cent of regular
passbook costs with this new
idea from LeFebure Corporation. The
new LeFebure passbook shell con­
sists of one full passbook page glued
to the inside of a cover.
A study by a large Midwestern
bank revealed that almost 98 per cent
of the savings accounts they closed
out did not fill one page of a standard
passbook. Now all accounts can be
issued a LeFebure passbook shell and
then when the account does fill up, a
regular passbook can be issued.
Safety paper with the “full service”
symbol is now available from LeFe­
bure. The high-quality paper comes

in green, blue or buff for cashiers
checks, money orders and passbook
Additional information on both the
passbook shell and the safety paper is
available from the LeFebure Corpora­
tion, Cedar Rapids, Iowa 52406.
Cummins-Chicago C o rp ora ­
tion is now making available a set
of promotional material to users of
the new Cummins Automated Savings
Passbook, a system developed to help
deposit institutions sell more savings
accounts and improve internal proce­
dures and reduce lobby congestion.
John Jones, Cummins president,
stated that the savings promotion kit
is intended to demonstrate how the
customer appeal of the system pro­
vides an opportunity to sell and ac­
quire new savings accounts on what
motivates many savers more than the
interest rate—convenience.
The program includes four ads, cus­
tomer folders, stuffers, lobby posters,
publicity releases, scripts and teller
lapel buttons, as well as suggested
coordinated schedules for conversion
and promotion and instructions for
bank personnel. A sample of the kit
may be obtained from Cummins-Chi­
cago Corporation, 4740 North Ravenswood Avenue, Chicago, 111. 60640.



Comptroller Appointee
Comptroller of the Currency Wil­
liam B. Camp has announced the ap­
pointment of John Nicoll as his ad­
ministrative assistant.
Mr. Nicoll, who has been associate
chief counsel for bank operations, suc­
ceeds Wayne G. Wickham, who has
resigned to accept the position of ex­
ecutive vice president and chief oper­
ating officer of Union National Bank,
Little Rock, Ark.

Promoted at Chicago Bank
Thomas J.
sistant vice
meeting of
Bank board

(S O D O E S A M E R I C A N C O U R IE R )

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N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 19 68
Federal Reserve Bank of St. Louis

Quinn was elected an as­
president at the August
the National Boulevard
of directors and was as­
sig n ed to D iv i­
s i o n B in t h e
c o m m e rcia l de­
partment, accord­
ing to Irving Sea­
man, Jr., chief ex­
ecutive officer of
the Chicago bank.
Mr. Quinn, a
graduate of TriState C olleg e,
Angola, Ind., with
T . J. Q U I N N
a Bachelor of Sci­
ence degree, has spent 22 years work­
ing in New York and Chicago banks,
having both commercial and install­
ment lending experience.



M ore Greenheads, “ Cans/’ Pintails, Bluebills,
Teal, Redheads and others of their breed. Tomorrow s
ducks depend on you today. Join Ducks Unlimited.
C o u ld you watch a duckling die from lack o f w ater—
and do nothing to help? Tens o f thousands die that
w ay every year. And thousands m ore in flooded-out
nesting grounds.
T o a duck, water is life. T o o little or too m uch
means death.
Since its inception, D ucks Unlim ited has banded
over 153,000 ducks and geese, collected over $16
million from sportsmen. This year alone, D ucks U n­
lim ited’s program s include construction o f 42 new
projects, creating or restoring 520,000 acres o f prime
waterfowl habitat with 887 miles o f productive shore-

line in the Canadian provinces o f M anitoba, Sas­
k atchew an, A lberta, B ritish C olu m b ia , and the
M aritim e provinces.
N o U.S. duck stam p funds can be used in Canada
— where 8 0 % o f the N orth Am erican waterfowl are
produced. D ucks U nlim ited’s action programs spell
D U C K S for the future, because D U builds its “ duck
factories” in the vital Canadian waterfowl nesting
W o n ’t y ou please help? Send you r contribution o f
$10 or m ore (it’s tax deductible) t o : D ucks U nlim ited,
D ept. H8, P.O. B ox 66300, Chicago, 111., 60666.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


•7t»2 N A H A C S tu d en ts a N ew Hitjh
RECORD high of 562 hankers
A were
enrolled in the 15th session
of the NABAC School for Bank Audit,
Control and Operation held at the
University of Wisconsin in Madison
last month. Those attending from up­
per midwest and mountain states in­
SENIOR: Walter L. Kappes, The Amer­

ican National Bank of Denver.
JUNIOR: Robert R. Kapman, Colorado
National Bank of Denver, and Edwin L.
Pounds, The Colorado Springs National
Bank, Colorado Springs.
FRESHMAN: Conrad G. Kern, First
National Bank in Boulder; Lawrence T.
Likness, First National Bank of Colorado
Springs; Wayne P. Meider, Continental
National Bank, Englewood, and Sammy B.
Reiser, The Colorado National Bank, Den­
SENIOR: Walter J. Brockman, Alton
Banking & Trust Co., Alton; Norman R.
Duplissie, International Illinois National
Bank & Trust Co., Chicago; Mrs. Aletha B.
Edmison, First National Bank & Trust Co.,
Mt. Vernon; David P. Kennedy, First Na­
tional Bank in Harvey, Harvey; John P.
Kilroy, Lake View Trust & Savings Bank,
Chicago; William J. Long, Continental
Illinois National Bank & Trust Co., Chi­
cago; Eugene E. Martin, The First Lake
County National Bank at Liberty ville,
Liberty ville; Peter T. Pelf as, First Na­
tional Bank of Oak Brook; Charles J.
Ricard, Lake Shore National Bank, Chi­
cago; John H. Robinson, The Northern
Trust Co., Chicago; David R. Starin, Fed­
eral Reserve Bank of Chicago, and Law­
rence E. Tardiff, Bank of La Grange Park.
JUNIOR: Kenneth L. Casper, Commer­
cial National Bank of Peoria; Frederick
C. Fischer, Devon Bank, Chicago; Jack A.
Geatches, Continental Illinois National
Bank & Trust Co., Chicago; Edward H.
Hard, Jr., Continental Illinois National
Bank & Trust Co., Chicago; Charles B.
Hoag, The Northern Trust Co., Chicago;
Thomas A. Kennedy, Pullman Bank &
Trust Co., Chicago; Richard D. Mills, Har­
ris Trust & Savings Bank, Chicago; Rich­
ard E. Nylander, Bank of Mundelein,
Mundelein; James L. Ringel, National

Boulevard Bank of Chicago; Ralph G.
Rink, Northwest National Bank of Chi­
cago; Mrs. Betty J. Salter, First National
Bank of Moline; Thomas J. Sheehy, The
First National Bank of Chicago, and W il­
liam J. Thiel, Elmhurst National Bank,
FRESHMAN: O. Jack Ballion, The Citi­
zens National Bank of Decatur; Mrs.
Marjorie D. Berry, City National Bank,
Kankakee; Tom R. Bradley, Harris Trust
& Savings Bank, Chicago; Gordon R.
Brockway, The First National Bank &
Trust Co., Barrington; B. Helge Carlson,
The First National Bank of Chicago;
Robert P. Cornelisen, Federal Reserve
Bank of Chicago; John L. Haupt, First Se­
curity Trust & Savings Bank, Elmwood
Park; Stanley L. Hedrick, First National
Bank of Des Plaines; Miss E. Jean Heithold, State Street Bank & Trust Co.,
Quincy; Miss Pauline Howe, Rock Falls
National Bank, Rock Falls; Robert J. Ka­
minski, Continental Illinois National Bank
& Trust Co., Chicago; Francis S. Kmetz,
The Streator National Bank, Streator;
Kenneth L. Lay, The Northern Trust Co.,
Chicago; James W. Mueller, Harris Trust
& Savings Bank, Chicago; Joe M. Nachbin,
Continental Illinois National Bank &
Trust Co., Chicago; Donald A. Noren, Zion
State Bank and Trust Co., Zion; Joseph
Parrillo, Midwest Bank and Trust Co., Elm­
wood Park; Robert L. Patton, Busey First
National Bank, Urbana; Earl C. Petersen,
American National Bank & Trust Co. of
Chicago; William P. Polen, Park National
Bank of Chicago; Albert E. Radcliffe, Ro­
selle State Bank, Roselle; Chester C. Shaf­
fer, First National Bank of Blue Island;
Gerald R. Shawgo, First National Bank of
Belleville; Thomas G. Stuhr, Western Na­
tional Bank of Cicero; Lawrence P. Wal­
ton, Southeast National Bank of Moline,
and Michael J. Wixted, Harris Trust &
Savings Bank, Chicago.

SENIOR: James Bloomberg, Burlington

Bank & Trust Co., Burlington, and Fred A.
Diekmann, The Security State Bank, Algona.
JUNIOR: Carl R. Mueller, Houghton
State Bank, Red Oak.
FRESHMAN: Robert E. Bullock, Iowa
Trust & Savings Bank, Oskaloosa; Donald
W. Christensen, The First National Bank,
Humboldt; Lonnie G. Sulzberger, First Na­
tional Bank of Muscatine, and Jay D. Vos,
Security State Bank, Sheldon.

Timothy J. Getter, Chicago
Lake State Bank, Minneapolis; Dale R.
Hill, Northwestern National Bank, Roches­
ter; Glendon J. Olson, First Bank System,
Inc., Minneapolis, and Miss Betty J .
Rickerman, First National Bank, Pipe­
JUNIOR: David M. Anderson, First
National Bank of Minneapolis, and Robert
D. Johnson, Northwestern National Bank,
FRESHMAN: Joseph J. Birchem, Jr.,
First National Bank of Minneapolis; Rich­
ard P. Conlin, First National Bank of Min­
neapolis; William J. Duma, The First Na­
tional Bank of St. Paul; Arien H. Funke,
Drovers State Bank, South St. Paul; Ralph
R. Grams, American National Bank &
Trust Co., St. Paul; Norman R. Hagstrom,
Northwestern National Bank of Minne­
apolis; Robert G. Rood, Midland National
Bank of Minneapolis; Paul D. Schiesman,
First National Bank of Minneapolis, and
A. Hugh Thompson, Northwestern Nation­
al Bank of Hopkins, Hopkins.

JUNIOR: Richard A. Cramer, The First

National Bank of Missoula.
Larry L. Dover, The
Midland National Bank of Billings; Wayne
C. Leiner, The Great Falls National Bank,
Great Falls, and Roy F. Nelson, Security
Trust & Savings Bank, Billings.

Schumacher, The Omaha National Bank,
Ronald L. Lahm, Omaha
Branch, Federal Reserve Bank of Kansas
City, Omaha.
FRESHMAN : Kenneth A. Cain, Beatrice National Bank & Trust Co., Beatrice;
D. Dwayne Catron, Center Bank, Omaha;
Lawrence L. Jordan, Bank of Bellevue,
Bellevue; Larry L. Nelson, National Bank
of Commerce Trust & Savings, Lincoln,
and Jim D. Philpott, The United States
National Bank of Omaha.

South Dakota
Gilbert E. Mjoen, American
State Bank, Yankton.
FRESHMAN: Eldon E. Hasche, North­
western National Bank of Sioux Falls.

W yom in g

Joseph W. Miller, Chey­
enne National Bank, Cheyenne.


U n it e d States
Federal Reserve Bank of St. Louis


SENIOR: Gene L. Burgen, United States
National Bank, Omaha, and Jerome J.


N o r t h w e s t e r n B a n ke r, S e p t e m b e r , 1968




When you correspond with the
world's #1 banking address,
you can count on the very best in service.
Prompt, reliable, thorough, highly professionalqualities that are characteristic of
Irving Trust Company. No matter what your size,
or the magnitude of your problem, you
will find, as many bankers across the country
have found, that you can always depend
upon the Irving for the margin of excellence
you are seeking from your correspondent banker.
Ir v in g T r u s t C o m p a n y

A Charter New York Bank

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

M idland’s Correspondent Banking Experts: Doug Johnson, Gil Falk, John Hunt, John Ordos





A re you racing with an operational
problem? Midland’s Full Service Bankers can help you take the
bugs out of your banking operation before the breakdowns. Ask a
Midland banker to help you with investment advice, operations,
loan analysis or systems and procedures. W e'll help you tune-up
for the competition o f modern banking. Call Midland for performance they know the mechanics.



Midland National Bank


o f Minneapolis
401 Second Ave. So. • Minneapolis, Minn. 55440 • Call 332-0511


Member Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n k e r , S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


dent of the First National Bank in Le
Bank in Red Wing.
The nominees will be proposed for
endorsement at the various district
meetings this month.

M in n e s o t a


Promotions at Marshall




Exec. S e creta ry

P la n

C rystal


legislation in 1969 will be
the key topic to be discussed at



the annual district meetings to be
held by the Minnesota Bankers Asso­
ciation, according to J. J. Choromanski, MBA president.
The meetings will be as follows:
September 16 — District 9, Country
Club, East Grand Forks.
September 17—District 6, Maddens’
Resort, Brainerd.
September 18 — District 8, North­
land Country Club, Duluth.
September 19—Districts 3, 4 and 5,
Town and Country Club, St. Paul.
September 23—District 7, Country
Club, Montevideo.
September 24 — District 2, Orchid
Inn, Sleepy Eye.
September 25 — District 1, Kahler
Hotel, Rochester.
Each meetting will start at 4 p.m.
A social hour will follow at 6:00 p.m.
A dinner will be served at 7:00 p.m.
The after-dinner speaker will be Bob
Conklin of Minneapolis. Districts 3,
4 and 6 will elect members to the
MBA council. M. L. Rye, commission­
er of banking for Minnesota, will ap­
pear at all meetings.

Joins Association Staff
Wayne F. Berthiaume has joined
the staff of the Minnesota Bankers
Association, according to Association
President J. J. Choromanski, president of the Crys­
tal State Bank.
In announcing
the appointment,
Mr. Choromanski
stated that Mr.
Berthiaume w ill
a ss is t in m an y
areas of MBA ac­
tiv ity , including
research and pub­
lic relations proj­
W . F. B E R T H I A U M E
ects of the Association.
Mr. Berthiaume, 24, was a loan offi­
cer for Industrial Credit Company in
Minneapolis prior to joining the Min­

Arlen Krugerud has been promoted
from assistant vice president to vice
president of Western State Bank in
Marshall. Mr. Krugerud joined the
bank in 1962.
Robert McVenes has been elected
assistant vice president. Mr. Mc­
Venes, who also joined the bank in
1962, will be in charge of real estate
Douglas Anderson was promoted
from assistant cashier to cashier. He
succeeds Earl Gibson, who has re­
signed to enter the bank examining
field. Virgil Como has been named as­
sistant cashier and manager of the
bank’s insurance department.

DistrieM e e tin g s
nesota Bankers Association, and pre­
viously was manager of a state loan
office in Minneapolis.

Edina Bank President
Warren R. Hinze, formerly presi­
dent of the First State Bank of St.
Paul, has been elected president and
director of the First Edina National
Bank, effective September 1.
H in ze su cce e d s
Eugene W. Oredson, who is now
chairman of the
board until his retire m e n t n e x t
Mr. H i n z e , a
graduate of the
Stonier School of
Banking at Rut­
g e r s University,
E. O R E D S O N
New Brunswick,
N. J., began his banking career in
1935 with the Western State Bank in
St. Paul. In 1936 he joined the First
State Bank of St. Paul, of which he
Mr. Hinze is a member of the ad­
visory council to the commissioner of
banks of Minnesota, and is also a
member of the MBA public relations

MBA Nominations Revealed
The nominating committee of the
Minnesota Bankers Convention has
announced its recommended candi­
dates for the association’s top posi­
tions for 1969-70. Nominated for pres­
ident of the association is S. R. Whea­
ton, executive vice president of the
First National Bank, Elk River. Mr.
Wheaton is currently serving as MBA
vice president.
Chosen for the vice presidential po­
sition is Marvin R. Campbell, presi­
dent of the First National Bank of
Crookston. Mr. Campbell is a former
member of the MBA council of ad­
ministration. Proposed as the candi­
date for a second one-year term as
treasurer is Ora G. Jones, Jr., presi-

Tower Bank
Begins Remodeling
Warren Kregness, president of the
State Bank of Tower, recently an­
nounced plans to remodel the exterior
of the bank building. Plans call for
the front portion of the building to be
completely changed in style, and for
new brick to be placed on the west
side of the building. Wellander Con­
struction in Tower has been awarded
the contract for the remodeling.

Buys Insurance Agency
Russell Noble, executive vice presi­
dent of the First National Bank in LeRoy, has purchased an insurance agen­
cy from Richard Blake of Le Roy.
Mr. Noble has employed Kent Viers
of Maxwell, Iowa, to service insur­
ance accounts.

New President for
St. Anthony Village
Dan A. Burrill has been named pres­
ident of the State Bank of St. An­
thony Village, ac­
cording to an an­
nouncement made
last month. Mr.
B u r r ill succeeds
Allan R. Burrill,
who was named
chairman of the
Dan Burrill was
previously execu­
tive v ic e presiD. A. B U R R IL L
dent of the sub­
urban bank, which moved into new
quarters last winter. He is also vice
president and director of the Dassel
State Bank of Dassel, Minn.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


B. KLETT was elected presi­
dent and director of the First

State Bank of St. Paul last month.
He succeeds Warren R. Hinze, now
president of the
First Edina Na­
tio n a l Bank in
Mr. Klett, a cum
laude graduate of
the University of
Minnesota and a
graduate of the
Stonier Graduate
School of Bank­
ing of R u tg e rs
O. B. K L E T T
U n iv e rsity , has
been a vice president and director of
the First Grand Avenue State Bank
in St. Paul. He began his banking ca­
reer in 1937 with the First National
Bank of St. Paul. In 1952 he was
elected cashier of the First Grand
Avenue State Bank, and in 1958 was
elected vice president and cashier of
the bank.
* *
The St. Anthony Falls Office of the
First National Bank of Minneapolis
recently celebrated its 75th anniver­
sary. It was founded in 1893 as the
St. Anthony Falls Bank by J. E.
Ware, early Minneapolis settler. By
1922 the bank on East Hennepin and
4th Street had grown to be “the old­
est and largest bank in East Minne­
apolis,” paying a handsome 4 per cent
on savings accounts.
That year the bank was bought by
the First National Bank of Minneapo­
lis and became an office of the First
National. Its resources had grown to
$6.2 million at that time.
A few months after the bank was
founded, it had half a million dollars
on deposit. According to Kirby Scrog­
gins, assistant manager, the bank’s re­
sources have grown about 500 per
cent since 1922. Donald S. Oren, vice
president, is currently manager of the
St. Anthony Falls office.
* * *
Harlie J. Privette has been appointN o r t h w e s t e r n B a n k e r , S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

ed assistant vice president and man­
ager of the installment loan depart­
ment at the Columbia Heights State
Bank. He joined the bank in 1964.
Gerald J. Hurd was elected assistant
* * *
The American National Bank of St.
Paul has announced the election of
two new vice presidents in the busi­
ness development and marketing divi­
sion. Elected are
Paul B. Bremicker, Jr., formerly

State Bank of St. Paul. Mr. Johnson
has been with the bank since 1965.
* * =t=
John M. Ditzler has been appointed
manager of the Guaranty Agency,
Inc. Mr. Ditzler was previously with
the Northwest Agency of Edina.
Also announced was the recent leas­
ing of additional quarters by the
bank. The added space results in a
65 per cent increase in operating area,
and has made possible expanded tell­
er operations, bookkeeping and ac­
counting operations.

vice president of
Northwestern Na­
tional Bank of St.
Paul, and Frank
H. Delaney, Jr.

Mr. Brem icker
has been in the
banking business
for 15 years, prior
to which he was
with a New York investment banking
firm. He is a graduate of the Gradu­
ate School of Banking at the Univer­
sity of Wisconsin. Mr. Delaney joined
the bank in 1966.
Named corporate planning officer
and assistant to the president is Wil­
liam T. Price. Mr. Price, who has

F. D E L A N E Y

P. B. B R E M IC K E R

been with American National since
1956, will assume responsibility for
real estate development and planning
of other long-range projects.
* * *
Jerome D. Johnson has been ad­
vanced from assistant cashier to as­
sistant vice president of Guaranty

J D.


J. M. D I T Z L E R

B a n gkok B a n kers

FOREIGN VISITORS— Manoch Kanchanachaya, second from, left, chief, advances

and discount section of the Bank of Thai­
land, Bangkok, observed banking opera­
tions at First National Bank of Minne­
apolis during a visit last week. He is
shown with First National host bankers,
from left, Assistant Cashier Robert Gruman, correspondent bank division; Vice
President William F. Ogden, Jr., interna­
tional banking division; and Assistant
Cashier Richard L. Parnell of the com­
mercial banking department.



“ Do you know someone who
should be in business for himself?
B. C. Gamble, Chairman of the Board
Gamble-Skogmo, Inc.
Gambles is looking for intelligent, am­
bitious men to join its franchise store
organization. For them, Gambles has
a franchise plan that simplifies all
phases of opening and operating a re­
tail store successfully. A plan that has
brought prestige, happiness and finan­
cial security to thousands of people in
all walks of life.

Expert guidance. Whatever type

of franchise chosen, Gambles’ experi­
enced field representatives, training
and educational programs get the new
owner started along the route to suc­
cess. And Gambles continues to pro­
vide top-level marketing, merchandis­
ing and operating guidance as the

T w o e x c e lle n t fr a n c h is e s to
choose from . Gam bles offers a

choice of franchises: A Gambles fran­
chise—a store selling primarily hardlines. A Skogmo franchise—a store
selling primarily softlines and wearing
apparel for men, women, the whole
family. The man who qualifies for a
franchise makes a modest investment
(perhaps with your help) and Gambles
helps from there on in.
Federal Reserve Bank of St. Louis

dealer franchises available in growing
population centers. Chances are, one
of these areas of great potential is
near you.
A Gambles franchise is an excellent
opportunity for both the man we’re
talking about and you. For him: a
successful business of his own. For
you: a new commercial customer in
your bank. If you know the kind of
man we’re talking about, show him
this ad, or write us about him.

America’ s Hometown Stores
M any areas still available. Right

now there are a number of valuable

Department NB-9
Gamble-Skogmo, Inc.
Box 458, Minneapolis, Minn. 55440
Northwestern B a n k e r, S e p t e m b e r , 1968


Minnesota News

Edmund Dunn has been named a
director of First Southdale National
Bank. Mr. Dunn is a partner in Dunn
& Curry Real Estate Company.
* * *
Services were held August 12 in St.
Paul for Albert T. Larson, former vice
president of Stock Yards National
Bank. Mr. Larson retired from the
bank in 1960, after 23 years with
Stock Yards.
* * *

vice president. Mr. Dewes was pre­
viously research department manager
for Robert W. Baird & Company of
* * *

compared to 80 cents per share in the
same period of 1967.
* * *
Darrell E. Pederson has joined the
staff of Northwest Bancorporation as
public affairs as­ T"
The First Bank System’s midyear
sistant. Mr. Ped­
report shows a 9.2 per cent increase
erson has been as­
in assets to a total of $3,306,687,643.
sistant cashier at
Consolidated net operating earnings
the State Bank of
were up 8 per cent over the first half
Virginia, Minn., a
of 1967 to $14,221,821. Total operat­
Northwest Banco
ing revenues increased 17.6 per cent
affiliate. F r o m
Howard J. Dewes has joined Dain,
to $94,683,019, and total operating ex­
1965 to 1967 he
Kalman & Quail, Inc., of Minneapolis, penses were up 20.4 per cent to $72,served with the
a regional investment banking firm, 239,424. Cash dividends for the first
as a research analyst and assistant six months were 90 cents per share,
F i r s t National
D . E. P e d e r s o n
Bank of Denison,
Iowa, as a Northwest Banco trainee.
Mr. Pederson, a native of South Da­
kota, is a graduate of the University
of South Dakota.
* * *
David M. Hyduke has joined the
Marquette National Bank, Minneapo­
lis, as vice president in charge of the
commercial loan
division. Mr. Hy­
duke was former­
ly assistant vice
president at the
F i r s t Nat i onal
Bank of St. Paul.
In his new ca­
p a c i t y Mr. Hy­
duke will be in­
volved in the su­
pervision of all
D. H Y D U K E
commercial loans
and the creation of commercial banking services to aid area businessmen
and industry.
* * *
Russell A. Aim has been elected as­
sistant vice president of First Bank
System of Minneapolis. He will di­
rect the building and design department, which coordinates th e
When you want “ on-the-spot” service, person­
building program
alized attention, speed and real efficiency in
f o r affiliates of
transactions that involve livestock banking . . .
First Bank Sys­
the staff at Northwestern National Bank have
Mr. Aim joined
the “ know-how” and location that save valuable
the building de­
partment of First
Service Corpora­
W e ’ll be pleased to serve you. Call 6 1 2 — 451tion, the servicV
i n g affiliate o f
1331 and let us know your needs.
First Bank Sys­
tem, in 1946. He was named man­
ager of the department in 1955 and y
assistant secretary in 1965. Last year
hewas elected assistant secretary of
First Bank Stock Corporation.
South Saint Paul, Minnesota
* * *
First Bank System of Minneapolis l
Member Federal Deposit Insurance Corporation
recently announced it has received
preliminary approval of the Comp-

When You Have Business at

the Stockyards . . . Call the

Northwestern National Bank


N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 7968
Federal Reserve Bank of St. Louis


65 y s he’s forgotten how to say ‘no’ since he learned
about Talcott Financing, so he’s practicing ju st in case.”
Once you know the many ways Talcott can serve you and your customers,
you can virtually eliminate “no” from your vocabulary. Talcott applies
account receivables, production equipment, inventory, other collateral
or a “package combination” to the loan your customer or prospect needs.
Until he reaches the balance sheet qualifications your own lending policy
dictates, we’ll tide him over. Meanwhile, you retain the bank account,
the goodwill and can participate in the loan if you wish.
So forget “no” and substitute Talcott “know-how.” Call or write for
our booklet, which will describe our services to banks in detail.




Commercial & Industrial Financing

* Factoring

820 Northwestern Bank Building, Minneapolis, Minn. 55402 • (612) 339-7711
Atlanta • Boston * Chicago • Dallas * Detroit • Hartford • Los Angeles * Miami
Minneapolis • Newark • New York • Philadelphia • Phoenix * Puerto Rico • San Francisco
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968


Minesota News

Your man
At the

troller of the Currency in Washington,
D. C., to establish First Plymouth Na­
tional Bank in a predominantly black
area of Minneapolis. Federal Reserve
Board action on
the application is
Selected as pres­
ident of the new
bank is John M.
W a r d e r. Mr.
Warder, who
most recently has
been vice presid e n t of L i t h o
j. m . w a r d e r
S u p p l y Depot,
Inc., w a s a l s o

elected assistant to the president of
First Bank System with responsibil­
ity for organizing and planning the
new bank.
Mr. Warder has held important po­
sitions in numerous Minneapolis or­
ganizations, including the Minneapo­
lis School Board, of which he is clerk,
the Chamber of Commerce, United
Fund, Minneapolis Urgan League, and
other groups.
Assistant Vice President


W c well look forward
to visiting with you
at the 7th Annual
Independent Bankers
Convention at the
Radisson, Minneapo­
lis, September 11-12.

Alexandria Promotions
Three officers of the Alexandria
State Bank have been advanced, ac­
cording to Martin Haar, president.
Herman Felt, vice president and cash­
ier, has been elected executive vice

president of the bank. Mr. Felt has
been with the bank since 1947.
H. R. Rogers was promoted from as­
sistant vice president to vice presi­
dent, and Keith Goulet was advanced
from assistant cashier to cashier of
the bank.


Elected Vice President
At Duluth Bank
Orley Rath has been elected a vice
president and trust officer by the
First American National Bank of Du­
luth. Mr. Rath, who joined the bank
as a trust officer in 1967, attended the
National Trust School of the Ameri­
can Bankers Association
at A
N o rt hwies t e r n
He has been as­
sociated with law
firms in A b e r- y
deen and Rapid
City, S. D., and
from 1959 to 1965
served as a vice
p r e s id e n t a n d
trust officer of
the First National Bank of Aberdeen.
Mr. Rath, a member of the South Da­
kota and American Bar Associations,
formerly served as chairman of the
trust committee of the South Dakota
Bankers Association.

When in CHICAGO —
stay on famous
Michigan A v e n u e ...

*‘The Largest Independent
Full Service Bank
in the Upper Midwest ’ '
Michigan Avenue at 11th St.
Newest in Downtown Chicago
225 room s—Phone WA 2-2900

—for b u s in e s s and re la x a tio n

S e v e n th a n d R o b e rt
S a in t P a u l

2 2 2 -6 6 6 6
Member Federal Deposit Insurance
Corporation • Federal Reserve System

N ofor
w e s t e r n B a n k e r . S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

A LL F R E E — Parking on premises,
Radio & T V , Wake-up Coffee, Ice
Cubes, Courtesy Car Service. Heated
swimming pools.
Enjoy incomparable Delm onico’s
and Bumbershoots Restaurants,
with atmospheric cocktail lounges
— entertainment . . . room service.
Meeting rooms for up to 600 . . .
Hospitality suites . . . Private ban­
quet facilities. Motel convenience
with full hotel services.
Make reservation direct,
through any travel agent
or Best Western Motel.

Michigan Avenue at 8th St.
Across from Conrad Hilton
325 room s—Phone WE 9-2800

cA kenue M O T EL


Michigan Avenue at 12th St.
100 room s—Phone HA 7-8200





Chicago .


downtown convenience with motel comfort



M innesota N ew s

M u e K u rth C on stru ction tteff tut

------------------------------------------- N

Your man
At the

CONSTRUCTION has started on the new building for Blue Earth State Bank.


AUL LINDHOLM, president of the
Blue Earth State Bank, has an­
nounced the beginning of construc­
tion on the bank’s new building.
The building, of red brick construc­
tion and Georgian design, will meas­
ure 69 by 78 feet, and will provide
space for six tellers, several private
offices, and other banking facilities.
Plans also call for a drive-up window
and a parking area.
The bank will be topped with a cop­
per-roofed cupola, and will have a
fountain on the south wall near one
of the entrances. A second entrance
will open into a vestibule which will
contain two customer services — an
after-hour depository, and a commu­

nity bulletin and information board.
The bottom floor of the building will
house storage and service facilities,
and a community room.

Resigns From Wihnont Bank
Mrs. Loreena Ennenga has resigned
her position as assistant cashier at
the First National Bank, Wilmont.
Mrs. Ennenga has been with the bank
for two years.

Named Windoin Director
Dr. James Dokken of Windom has
been elected to the board of directors
of the First National Bank. Dr. Dokken’s election fills the vacancy created
by the recent death of Harold Cramm.


Vice President


We will look forward
to visiting with you
at the 7th Annual
Independent Bankers
Convention at the
Radisson, Minneapo­
lis, September 11-12.
“ The Largest Independent
Full Service Bank
in the Upper M idw est ' '


sioux c i t y , i o w a
Federal Reserve Bank of St. Louis

S e v e n th a n d R o b e rt
S a in t P a u l

2 2 2 -6 6 6 6
Member Federal Deposit Insurance
Corporation • Federal Reserve System


N orth w e stern Banker, Se ptem ber, 1968



* . - 1

* '« .

$iw»<if» M a e t w t a i ,






Vice President


o r t h w



e s t e r n






N a r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


Assistant Vice President Assistant Vice President



South Dakota


Se creta ry


N eil M iln e r


HE South Dakota Bankers Asso­
ciation President Robert F. Petschow of Elkton has announced the
appointment of Neil Milner as execu­
tive secretary-treasurer of the South
Dakota Bankers Association to re­
place Roy W. Terwilliger, who re­
cently resigned to accept a position
with the American Bankers Associa­
tion in New York. Mr. Milner began
his duties September 1.
Mr. Milner has been serving as dep­
uty manager of the Ohio Bankers As­
sociation, handling legislation, agri­
cultural, and public relations and
marketing activities.
Mr. Milner was born near Leesburg,
Ohio, and graduated from Ohio State
University, with a degree in agricul­
tural economics. Upon graduation he
received the O u tsta n d in g Senior
Award for his participation in univer­
sity activities. Following his gradu­
ation, he served as public relations
director of the Milk Producers Feder­
ation of Cleveland and the Northwest­
ern Cooperative Sales Association of
Toledo, both dairy cooperatives.
He joined the Ohio State Bankers
Association in 1962 as public relations
director, and was promoted to deputy
manager in 1966. He had the major
responsibility for the revision and re­
codification of the Ohio banking laws
enacted by the Ohio Legislature in
A 1964 graduate of the Bank Pub­
lic Relations and Marketing School,
Mr. Milner has also worked with that
organization as a member of the Com­
mittee for Cooperation with Banking
and Public Relations Associations and
is currently a member of the nominat­
ing committee. In the American In­
stitute of Banking he completed the
course on “Principles of Bank Opera­
tions” and served as instructor for the
Columbus, Ohio, chapter on bank pub­
lic relations and marketing.
A recipient of the American Farm­
er degree from the Future Farmers of
America, Mr. Miller served that or­
ganization as state president and was
awarded the Honorary State Farmer
degree for his work with the Ohio
Federal Reserve Bank of St. Louis

N ew SUIS. I
Future Farmers. He served as presi­
dent of the Ohio State Junior Fair
Board for two years.
Mr. Milner is a member of the Ma­
sons, Eastern Star, the Ohio Trade
Executives Association, and has been
serving as president of its agricultur­
al marketing forum. He is a member
of the Presbyterian Church, and is ac­
tive in local church and civic affairs.
Mr. Milner is married and the father
of two daughters.

Elected at Aberdeen
Thomas H old h u sen and Dennis
Peck, who have been officer-trainees,
have both been elected assistant cash­
iers at the First National Bank of
Aberdeen. Both are in the install­
ment loan department.

Convention Committees
Appointed for 1 9 6 9
SDBA President Robert F. Petschow has appointed the following
bankers from Aberdeen to commit­
tees for the 77th annual SDBA con­

vention, scheduled for May 8-10, 1969,
in Aberdeen:
General Chairman—Gerald L. Hill,
chairman, Farmers and Merchants
Housing and Reservations — Law­
rence Engelhart and Ronald L. Kranig, Aberdeen National Bank.
Golf Tournament — Terry Beddow
and Dennis Christensen, Farmers and
Merchants Bank.
Bowling Tournament — C. L. Koch
and Gary Roth, First National Bank.
President’s Reception—L. A. John­
son and Roy C. Hanson, Aberdeen Na­
tional Bank.
Banquet and Entertainment—S. R.
Larsen and D. W. McDermott, First
National Bank.
Ladies’ Luncheon—Mrs. S. H. Lar­
son, Mrs. Gordon Curren, Mrs. L. A.
Registration — Gordon Curren and
Stan Peterson, Farmers and Mer­
chants Bank.
Publicity—E. C. Pieplow, First Na­
tional Bank.
Transportation — Kent Baird and
William Nelson, Aberdeen National

Increase Capital Stock
Two North Dakota banks have been
given approval to increase their capi­
tal stock, according to the office of the
state banking examiner. They are
the Kindred State Bank of Kindred,
from $50,000 to $75,000, and the First
Western State Bank of Minot, from
$170,000 to $306,000. Both increases
will be by means of stock dividend.

M ille r P lu n s N ew Builtling

WORK BEGAN last month on the new First National Bank building in Miller, S. D.,
according to L. E. Weaver, president. Dimensions of the building are 60 by 100 feet,

plus a drive-in and depositors’ window. The building will have a full basement, housing
bookkeeping space, vaults, and a community room. The main floor will consist of the
banking room, two conference rooms, and the insurance and installment loan departments.
Completion is slated for June, 1969.
N o r t h w e s t e r n B a n ke r, S e p t e m b e r , 1968


South Dakota
------------------------------------------------- \

Your man
At the

P r o g r a m ih* ta ils fo r li) tifi
G roup
3 tc e tia g s


O B E R T F. PE TSC H O W , presi­
dent of the South Dakota Bank­
ers Association, has announced de­
tails for the five 1968 group meetings.
A. Neil Milner, newly-appointed ex­
ecutive secretary-treasurer of the
SDBA, will be introduced by Mr.
Petschow at each of the meetings.

p e t e

Assistant Vice President


We look forward to
visiting with you in
September during the
South Dakota Bank­
ers Group Meetings

" The Largest Independent
Full Service Bank
in the Upper M id w est"

S even th and Robert
S aint Paul

2 2 2 -6 6 6 6
Member Federal Deposit Insurance
Corporation • Federal Reserve System

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 7968
Federal Reserve Bank of St. Louis

r e t z e a f e

B. K N O X

Programs for each of the meetings
are identical and are given below.
Dates and sites for the meetings are
as follows:
Group II—Aberdeen, September 9.
Group IV—Mobridge, September 10.
Group V—Rapid City, September 11.
Group III — Chamberlain, Septem­
ber 12.
Group I — Sioux Falls, September

Remarks by Robert F. Pets­
chow, president, South Dakota
Bankers Association, and presi­
dent, Corn Exchange Bank,
Introduction of A. Neil Milner,
new executive secretary-treas­
urer of South Dakota Bankers
2:20 Presentation of Study and Re­
codification of Banking Laws
by Boyd Knox, chairman, Bank­
ing Law Study Committee, and
executive vice president, Com­
mercial Trust & Savings Bank,
Mitchell; Howard Peters, presi­
dent, A m e rica n State Bank,
Wessington Springs; Robert H.
Frei, p resid en t, Commercial
State Bank, Wagner; Russell
Halvorson, vice president, Na­
tional Bank of South Dakota,
Rapid City; Herman Lerdal,
president, Mi t c he l l National
Bank, Mitchell.
2:45 Coffee break.
3:00 Discussion and questions on
proposed recodification.
5:00 Group business sessions, group
presidents presiding; election of

officers for 1969, election of ex­
ecutive couneilmen in Groups
II and IV for three-year terms,
selections of 1969 meeting sites.
5:30 Group social hour.
6:30 Banquet; group presidents are
masters of ceremonies.
Introduction of distinguished
Banquet speaker: Pete Retzlaff,
Philadelphia, Pa. Mr. Retz­
laff is a former pro football
star with the Detroit Lions and
Philadelphia Eagles, and is
now a TV and radio sportscaster in Philadelphia. He was a
Little All American at South
Dakota State University, and
is a past president of the NFL
Players’ Association.
8:30 Adjournment.
Group I: Loyal C. Olson, president;
executive vice president, Bank of
Union County, Elk Point. John Krastins, vice president; assistant vice
president, N o r t h w e s t e r n National
Bank, Sioux Falls. John W. Thomp­
son, secretary-treasurer; p resid en t,
Bank of Centerville.
Group II: Ivor H. Ochsner, presi­
dent; executive vice president, First
National Bank, Frederick. Thomas H.
Law, vice president; cashier, Gary
State Bank, Gary. Merlin L. Stocking,
secretary-treasurer; vice p r e s i d e nt
and manager, First National Bank of
Aberdeen, Milbank.
Group presidents will be in charge
of their respective groups. Group offi­
cers are:
Group III: Lewis V a n d erb oom ,
president; vice president and manager,
National Bank of South Dakota,
Platte. Allan Larson, vice president;
executive vice president, Fa r me r s
State Bank, Winner. Bernard H.
Horstman, secretary-treasurer; cash­
ier, Mitchell National Bank, Mitchell.
Group IV: Darrel E. Card, presi­
dent; vice president and manager,
Dewey County Bank, Isabel. Emmett
H. Johnson, vice president; cashier,
First State Bank, Roscoe. Kenneth R.
Zandstra, secretary-treasurer; assist­
ant cashier, Citizens Bank of Mo­
Group V: Hugh Catón, president;
assistant vice president, Rushmore
State Bank, Rapid City. LeRoy Hofer,
vice president; vice president, Ameri­
can National Bank & Trust Company,
Hot Springs. Eugene A. Erickson,
secretary-treasurer; president, South­
ern Hills Bank, Edgemont.







South Dakota N ew s

In sta llm en t C red it C on feren ce
W ill B e H eld in M itc h e ll


HE Annual Installment Credit
C o n f e r e n c e conducted by the
South Dakota Bankers Association
will be held at the Mitchell County
Country Club in Mitchell on Septem­
ber 24.
Workshop sessions will be featured
in the afternoon. The topics will be
the subjects discussed during the
morning program— Truth-in-Lending,
Credit Life Insurance Regulations,
and Sailors and Soldiers Relief Act.
The social hour and Dutch lunch
will start promptly at 4:30 p.m. so
registrants can be at the Corn Palace
at 6:00 p.m. for the entertainment pro­
gram. Headlining the show will be
Eddie Arnold, The Gold Diggers, and
Pat Morita, a Japanese-American com­
The program follows:
Tuesday, September 24

8:00 Registration at Mitchell Coun­
try Club.
8:30 Coffee served.
9:00 Call to Order—Roy C. Hanson,
hairman, SDBA Installment
Cr edi t Commi t t ee; assistant
vice president, Aberdeen Na­
tional Bank, Aberdeen.
Official Welcome — Robert F.
Petschow, president, South Da­
kota Bankers Association; pres­
ident, Corn Exchange Bank,
9:10 “The Future of Our Current
Economy” — Dr. B. A. Rogge,
Wabash Col l ege, Crawfordsville, Ind.
9:50 “Credit Life Insurance Regula­
tions”—Warren E. Dirks, Com­
missioner, South Dakota State
Department of Insurance, Pi­
10:20 “ Truth-in-Lending and the Uni­
form Consumer Credit Code”—
Lawrence J. Burns, member of

the ABA Lawyers Committee
on the U n i f o r m Consumer
Credit Code, Columbus, Ohio.
10:50 “The Soldiers and Sailors Re­
lief Act”—Donald Porter, SDBA
Legal Counsel, Martens, Gold­
smith, May and Porter, Pierre.
11:20 Adjournment.
12:00 Luncheon.
Introduction of Distinguished
Luncheon Speaker — George
Night, Lt. Governor, State of
Oklahoma, Oklahoma City.
1:45 Workshop Sessions:
Group A—David Russell, assist­
ant vice president, National
Bank of South Dakota, Sioux
Group B—G. D. Hansen, vice
president, V a l l e y National
Bank, Sioux Falls.
Group C — Terry Bedclow, as­
sistant cashi er, Fa r me r s &
Merchants Bank, Aberdeen.
3:30 Reconvene in large group in
ballroom for general discus­
4:15 Conference adjournment.
4:30 Social hour and dutch lunch.
6:00 Eddie Arnold show at the
world’s only Corn Palace. —

------------------------------------------------ .

Your man
At the

Correspondent Banking Officer

W e look forward to

visiting with you in
September during the
South Dakota
Bankers Group


Attends Mortgage School
Robert K. Miller, assistant vice
president, National Bank of South Da­
kota, Vermillion, was graduated from
the National Mortgage School at Co­
lumbus, Ohio, last month. The school
is sponsored by the American Bank­
ers Association and the Ohio State
One week residency is required for
two successive years with several ex­
tension projects completed at home to
qualify for graduation.



‘The Largest Independent
Full Service Bank
in the Upper M idw est "

Since 1919

Underwriters and Distributors
of Corporate and
Municipal Securities
A L L I S O N -W I L L I A M S


S e v e n th a n d R o b e rt


Phone: 333-3475 (Area Code 612)

S a in t P a u l

2 2 2 -6 6 6 6
M em ber Federal Deposit Insurance
Corporation • Federal Reserve System

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


South Dakota

Advanced at Aberdeen
Gordon J. Curren has been ad­
vanced to the position of executive
vice president and director of the
Farmers and Merchants Bank, accord­
ing to a recent announcement. Mr.
Curren joined the bank in 1966 as vice
president and cashier. He began his
banking career with the Northwest­
ern National Bank of Sioux Falls in
1947, where he became assistant vice
president and manager of the Huron
He succeeds Herman Lordai, who
recently resigned to become president
of the Mitchell National Bank.

Advanced to vice president in
charge of the farm department was
Stanley M. Peterson. He joined Farm­
ers and Merchants in 1962 as agri­
cultural representative.
Promoted from assistant cashiers to
assistant vice presidents were Dennis
L. Christensen, in charge of the trust
department, and Terry Beddow, head
of the installment loan department.

State Banks Grow
An abstract published by the State
Department of Banking and Finance
reflects a 5.4 per cent increase in de­
posits at state-chartered banks in

T T 7

Aberdeen \ ,

South Dakota for the first six months
of 1968, compared to the same period
in 1967. Deposits are now $534.6 mil­
lion. Capital accounts in state banks
grew from $49.7 million to $51.9 mil­
lion for the same period.


Mitchell Bank Elects
New Directors
Three new directors were elected
last month to the board of the Com­
mercial Trust and Savings Bank.
They are James W. Stewart, vice pres­
ident and trust officer of the bank;
Ronald R. Jenkins, cashier and assist­
ant trust officer, and Evan A. Tessier,
president of Tessier Sheet Metal
Works in Mitchell.

Black Hills Bank
Celebrates 90tli Birthday
The First National Bank of the
Black Hills recently celebrated its
90th anniversary. The bank was char­
tered July 25, 1878, 11 years before
South Dakota became a state.
The bank, headquartered in Rapid
City, now has $86.5 million in deposits
and more than $98 million in assets.
Besides the main office, there are now
10 branch offices for the bank—two in
Rapid City, and one each in Belle
Fourche, De adwood, Hot Springs,
Lead, Newell, Spearfish, Sturgis and
Villa Ranchaero. Charles T. Undlin is
president of the bank.


New Auditor for
National Bank
Check Your Group Meeting Place and Date, and we'll
look forward to seeing you there for informal discussions
on current banking practices and problems.

We ll



at the

6 0 Enroll in IBAA Seminar


Member Federal Deposit Insurance Corporation


N o r t h w e s t e r n B a n k e r , S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

Donald F. Bertsch has been appoint­
ed auditor for the National Bank of
South Dakota. He will supervise au­
diting procedures for the bank and
its 13 facilities across the state.
Mr. Bertsch began his banking ca­
reer as cashier at the First Potter
County Bank in Gettysburg, and since
January of this year has been super­
vising examiner of the North Dakota
regional audit for First Service Corportation, the servicing facilities of
First Bank System, Minneapolis.

A capacity enrollment of 60 has
been registered in advance for the sec­
ond annual seminar for junior bank
officers sponsored by the Independent
Bankers Association of America.
The seminar will be held October
15-17 at Ball State University in Muncie, Ind. Howard Bell, IBAA execu­
tive director, said the registrants
come from 23 states.
Topics slated for lectures and group
di s c us s i o ns include loans, invest­
ments, marketing bank service, data
processing, career development, and
the independent banking philosophy.

they have to offer for the common
These are the beliefs that form the
foundation of service that Willis Alex­
ander learned from his distinguished
father and indicate the kind of com­
plete and dedicated service that Willis
will give in the tradition of ABA pres­
idents when he is installed as presi­
dent of the American Bankers Asso­
ciation this month for the 1968-69

North Dakota





Grand Forks

L eg isla tiv e P r o g r a m W ill B e
T opic fo r G roup M ee tin g


HE principal topic for discussion
at the North Dakota group meet­
ings in October will be the associa­
tion’s legislative program that will be
proposed for the 1969 session of the
state legislature.
The meetings will be held October
8 at Devils Lake, October 9 at Williston, October 10 at Dickinson and Oc­
tober 11 at Jamestown.
Presenting the NDBA legislative
program will be Edward L. Olson,
president of the association and sen­
ior vice president of First National
Bank & Trust Company, Grand Forks;
John Rouzie, chairman of the legisla­
tive committee and president, First
National Bank, Bowman, and William
J. Daner, association secretary, Bis­
Each meeting will start at 4:00 p.m.
The business session will be followed
by a social hour and dinner.

(Continued from page 46)
ment. The community banker has
another reason. His is the unique
opportunity to determine the attitude
toward progress his community holds
and in cooperation with the news me­
dia—newspapers, radio and TV—he
can move a community. As a corol­
lary, he can encourage or discourage
progressive attitude by the encourage­
ment he gives to credit related prog­
Willis practices what he preaches
and has been doing so for many years.
In cooperation with the other bank in
Trenton, the Trenton National Bank,
the community has had the advan­
tage of banking leadership assist it
to bring industry into the county seat
town of Trenton and in financing lo­
cal business and farm operators. Wil­
lis is president of Wright Memorial
Hospital and a member of the 75-bed
hospital’s hoard of trustees. He is
active in the Grundy County Indus­
trial Development Corporation. It is
here he cites that “this is not the area
Federal Reserve Bank of St. Louis

for competition between community
banks, but cooperation.”
He is also co-publisher of the local
newspaper, the 104-year-old Trenton
Republican Times, which is published
six days a week.
He recognizes that there will al­
ways be problems confronting the in­
dustry, and also believes that bankers
must not only keep abreast of chang­
ing requirements but ahead of them
wherever possible. Two cases he
mentions are the recently announced
reform of Federal Reserve require­
ments, which permit state-member
banks the same privileges enjoyed by
national banks, and the ABA’s effort
to help solve some of today’s social
problems through its Urban Affairs
He favors Federal Reserve reform
as a necessity, but opposes the Fed’s
continued effort to make it mandatory
for all banks to carry reserves with
the Fed. This is de facto member­
ship, he states, and carries the seeds
of centralized control.
He has special praise for the ABA
Urban Affairs Committee for it is try­
ing to get bankers to help solve prob­
lems at the lowest level of work pos­
Willis Alexander strongly believes
in the capability of the local unit
bank to compete and survive in to­
day’s rapidly changing economy, but
only if the banking leadership in unit
banks is willing to “roll with the
punch” and make the service adjust­
ments that will keep it apace with the
public needs.
He strongly believes in bankers be­
ing community leaders, for they have
the unique opportunity to serve as
the financial eyes and ears for the
community, affording them an oppor­
tunity to set the pace to serve their
community’s progress.
He also believes that bankers should
want to serve their communities and
the entire public need for the sake of
sharing with others what experience

Joins Larimore Bank
Herbert Emter, 29, has joined Elk
Valley State Bank of Larimore as an
assistant cashier, it was announced
last month by President Curtis Cor­

Fargo Promotions
Myron Hovden has been appointed
assistant cashier and assistant man­
ager of the time pay department at
The Merchants National Bank &
Trust Company at Fargo. William
Frost is transferring to an affiliate
bank, the American National Bank of
Little Falls, Minn. Keith Falconer is
joining the bank as a unit man in the
time pay department.
Mr. Hovden joined Merchants Na­
tional in 1948 and Mr. Frost in 1963.
Mr. Falconer has been with the Mar­
quette National Bank of Minneapolis
for two years.

Elected Director in Bismarck
Milton Rue, Jr., of Bismarck has
been elected to the board of directors
of the First National Bank. Mr. Rue’s
election fills the vacancy created by
his father’s death last May 29.

Columbus Bank Opens Station
The North Dakota State Banking
Board has given approval to a pro­
posed paying and receiving station at
Lignite to be operated by the Colum­
bus State Bank, Columbus.

Joins Rugby Bank
Richard A. Johnson has joined the
Citizens State Bank, Rugby, as assist­
ant vice president. Since 1966 Mr.
Johnson has been manager of the
Northwestern Bell Telephone office in

Butte Station Approved
The Bank of Turtle Lake has been
given permission by the North Da­
kota State Banking Board to establish
a paying and receiving station at
Butte. The bank hopes to have the
station in operation by October 1, de­
pending upon FDIC approval.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968

BAI Officers

M ontana

R. C . W A LLA C E



Montana Resources Grow
Midyear s t at ement s of Montana
banks show an increase of 7.4 per
cent in resources over the same time
last year. An increase of more than
$97 million brings the total resources
of all Montana banks to $1,400.5 mil­
lion, according to Albert E. Leuthold,
state examiner.
Capital structure increased by $5.1
million to a totoal of $78.7 million.
Loans and discounts for the fiscal
year were $746 million. The 86 state
banks, one trust company, and 48 na­
tional banks showed a combined de­
posit total of $1,072.4 million.

Promoted at Midland
O f Billings
James A. Wempner was promoted
recently to vice president in charge
of the agricultural loan department,
according to John Tenge, president.
Mr. Wempner began his banking ca­

reer in 1948 in North Dakota, and
came to Midland National in 1951. In
1964 he was elected assistant vice

New officers for the Glacier Confer­
ence of BAI (formerly NABAC) for
1968-69 are as follows:
President—E. Eugene Gale, auditor,
Security Trust & Savings Bank, Bill­
ings; vice president — Wallace E.
Small, cashier, First National Bank,
Missoula; secretary—Robert M. Pancich, assistant vice president, First
Metals Bank and Trust Company,
Butte; treasurer—T. E. Sell, vice pres­
ident and cashier, First National
Bank, Glendive.
Directors are: Charles L. Newland,
state director, First National Bank,
Bozeman; Barret L. Collier, assistant
vice president, First National Bank,
Great Falls; Donald A. Lees, auditor,
First National Bank, Glasgow.

MBA Committee Chairmen


E. H U R L B E R T

J. A. W E M P N E R

At the same time Mr. Tenge an­
nounced the appointment of William
E. Hurlbert to be an installment loan
officer and manager of the installment
loan section of the consumer finance
department. Mr. Hurlbert has been
with the bank since 1963.

President of the Montana Bankers
Association J. D. Street, chairman of
the Security Bank and Trust Com­
pany of Bozeman, has announced the
chairmen of standing committees of
the Montana Bankers Association, as
Nominating—Robert G. Henry, vice
president, First Metals Bank and
Trust Company, Butte.
Agricnltural Credit Conference —

William R. Tait, president, First Na­
tional Bank, Dillon.
Bank Operations—Ken B. Jacobson,
vice president and cashier, Midland
National Bank, Billings.
Business Development — John E.
Tenge, president, Midland National
Bank, Billings.
Distributive Education Program —

With over 1000 branches throughout
Canada and around the world and an
international network of correspond­
ents — the Bank of Montreal is well
qualified to help you and your clients
north of the border and throughout
the world. Write or visit any one of
our five United States offices.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

B a n k o f M o n trea l
Can ada’s First Bank
Covers Canada...Spans the Worid

Chicago: Board of Trade Bldg.
141 W. Jackson Blvd.
New York • Houston
San Francisco • Los Angeles • Sacramento


S. R. Erickson, First National Bank,
Miles City.
Consumer Credit—Don G. Stewart,
vice president, First National Bank,
Education—Ted Witzel, vice presi­
dent, Security Bank & Trust Compa­
ny, Bozeman.
Insurance—J. William Kearns, Jr.,
assistant cashier, State Bank of Town­
Legislative—Robert F. Burke, vice
president, First National Bank &
Trust Company, Helena.
Public Relations — Richard Rubie,
president, Citizens Bank of Montana,
Real Estate Mortgage—A. W. Dickhoff, vice president, Great Falls Na­
tional Bank, Great Falls.
Resolutions — C. H. Brocksmith,
president and trust officer, First Secu­
rity Bank of Glasgow.
Trust—George L. Beall, vice presi­
dent and trust officer, First National
Bank & Trust Company, Helena.




T h e se bankers know
what’s going on in

Bradford Hall
Vice President

John J. Stine
Vice President

Richard D. Cramolini
Asst. Vice President

Richard D. Frey
Asst. Vice President

Nicholas Price
Asst. Vice President

Central Divisions of National Banking Department

Th ey should.
T h e y ’re headquartered
there. Th ey represent one
of the ten largest banks
in the country.
Make your financial partner



561 South Spring Street, Los Angeles, California 90013 • Telephone (213) 620-6211
333 Montgomery Street, San Francisco, California 94120 • Telephone (415) 981-6800
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968

51 per cent of shares of any one of
the three affiliates.
Mr. Adams urged shareholders who
have not yet exchanged “to do so im­
mediately so as to insure the forma­
tion of the bank holding company.”


New s

Announce Auditing Course

Colorado Bankers Association
Steamboat Springs

New Durango Bank
The Bank of Durango recently
opened its doors to business. The
bank, the third for Durango, is owned
by the Turner family, owners of sev­
eral other Colorado businesses. The
bank opened with $2.5 million in de­
posits and $503,000 in capital, surplus
and undivided profits.
Officers of the bank are Richard W.
Turner, chairman and president; R.
W. Turner, Jr., senior vice president;
R. L. (Rod) Turner, executive vice
president; Robert Sherwood, Fred
Powell and James W. Sower, vice
presidents; John W. Turner II, vice
president and cashier, and Gene Sie­
mens, assistant cashier.

Suburban Clearing Head
John D. Rankin, vice president and
cashier of the Broomfield Bank, be­
came president of the Suburban Clear­
ing House Association at its annual
meeting August 14. Mr. Rankin suc­
ceeds Dean Dearinger, president of
the North Valley State Bank, Thorn­
ton, as president of the association,
which has 35 member banks.
Edward C. Hanifen, president of the
Aurora National Bank, moved from
secretary-treasurer to vice president,
and Joseph Horan, executive vice
president of the Arvada State Bank,
was elected secretary-treasurer.

National Bancorporation, Inc., Den­
ver, voted at a special meeting Au­
gust 28 to extend until 3:30 p.m., Octo­
ber 4, 1968, exchange offers for shares
of The First National Banks of Den­
ver, Bear Valley, North Glenn and
The original exchange offers would
have expired at 3:30 p.m. August 10.
The extension was announced joint­
ly by Montgomery Dorsey, chairman
of the board of Bancorporation and
The First of Denver, and Eugene H.
Adams, president of Bancorporation
and The First of Denver.
Mr. Adams said Bancorporation
would provide stockholders with to­
tals on shares which have been ex­
changed by 3:30 p.m. on August 29.
Tentative totals, he said, show The
First of Denver with “more than 60
per cent” of its shares exchanged for
those of the Bancorporation and the
three affiliates all with “more than
65 per cent.”
To become a bank holding com­
pany, Bancorporation would have to
receive for exchange 67 per cent of
shares of The First of Denver and

A short course in auditing has been
slated for October 14-19 at the Univer- p.
sity of Colorado, Boulder, by the
Bank Administration Institute (for­
merly NABAC). Enrollment is lim­
ited to 50 persons.
The short course, tailored to the dneeds of banks with deposits under
$50 million offers an opportunity to
start an inexperienced person in au­
diting training or enables someone al­
ready assigned in auditing to expand
his knowledge and effectiveness.
The course of study will include:
Introduction to Banking Accounting;
Principles of Auditing; Deposit Audit- ^
ing; Trust Auditing; Loan and Collat­
eral Auditing; Cash, Due From Banks,
and Collections; Securities and Safe
Deposit Auditing; Income Auditing; ^
Expense Auditing; EDP Audit and
Control; Organizing the Audit Pro­
gram and Audit Reports.
A minimum of four years of bank
experience is required for admission.
Two years of education beyond high
school or two years of public account­
ing experience may be substituted for ±
two of the four years of bank expe­
Applications should be directed to
the Registrar, E d u c a t i o n Division,
Bank Administration Institute, P. O.
Box 500, Park Ridge, 111. 60068.

Denver U. S. President
Heads Dartmouth Drive
Neil F. Roberts, president of the
Denver U. S. National Bank, was re­
cently named Colorado area chairman
of Dartmouth College’s Third Century
Fund. Mr. Roberts is a 1935 graduate
of Dartmouth College, and has been
active in the Dartmouth Alumni As­
sociation. The college, located in
Hanover, N. H., is seeking to raise
$51 million for academic programs
and facilities, library funds and schol­

First National Extends
Date for Exchange Offer
The board of directors of The First
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

Appointed Meeteetse Manager
William Campbell, cashier of the
Western National Bank of Lovell,
was appointed manager of the First
Nat i onal Bank of Meeteetse last
month. Mr. Campbell assumed his
position September 1.

million, State Examiner Dwight Bon­
ham said.
For the same period, deposits in
Wyoming banks increased from $563.6
million to $612.3 million, an 8.6 per
cent rise.

Open House at Powell
9 Per Cent Rise in Assets
Assets in Wyoming’s 69 banks rose
9 per cent from June 30, 1967, to June
30, 1968, the state examiner’s office
reported last month. Total assets in­
creased from $636.6 million to $693.5


The First National Bank of Powell
recently held open house in its newlyremodeled quarters. The addition and
remodeling of the bank provides ex- ^
panded office space and a meeting


You don’t have to
w e a r o u r p in
to b e an idea banker.
B u t you have to
b e an Idea B anker to
w e a r o u r pin.
Our Idea Bankers look forward to see­
ing you at the 1968 ABA convention.

Am erican National Bank

and Trust Company of Chicago • LaSalle at Washington 60690
Phone (312) 621-5000

Member FDIC «1968ANE
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968


H is b a n k er w ill be c a llin g U.S.
And for good reason. Now, at the peak
tim e of cattle m ovem ent from the
ranges to the feedlot, our correspond­
ent banks who serve the cattle industryare well aware of the value of up-to-theminute market information in m aking

sou n d credit d ecisio n s. T hey k now
they can count on U.S. for help with
any of the problems involved in cattle
feeding and financing programs. We’d
like to work for you, too. Phone us at
341 -8 7 6 5 , Omaha.

All t h e s e r v i c e s o f U . S . N a tio n a l a r e
y o u rs fo r a p h o n e c a ll...3 4 1 -8 7 6 5 , O m a h a

Assistant Cashier
Member F.D.I.C.

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


Named Fremont Director
Rupert Dunklau has been elected to
the board of Fremont National Bank,
according to Thomas J. Milliken, pres­
ident. Mr. Dunklau is executive vice
president of Valmont Industries, Inc.,
of Valley.






Exec. Mgr.


Broken Bow Advancements
Charles R. Giles, cashier at the Ne­
braska State Bank in Broken Bow,
has been elected vice president and
cashier. John R. Brainard was also
promoted to vice president and Nor­
man Schipporeit to assistant cashier.

Joins Alliance Bank

chairman of the executive committee.
No other executive changes are fore­
seen, Mr. Conrad said.
Mr. Brodkey has been associated
with Sidney National for eight years.
He said business interests in Omaha
are monopolizing his time, and influ­
enced his decision to sell his interest
in the bank.

Joins Bank at Gothenberg
Ronald M. Rittscher joined the
Gothenburg State Bank last month as
an assistant vice president. Mr. Ritt­
scher has been assistant manager of
the North Platte office of Production
Credit Association.

Retires From Top Positions
Clyde H. Sudman has announced
his retirement as chairman of the
board of the Guardian State Bank in
Alliance, and as president of the Bank
of Valentine, the Bank of Hemingford
and the Gordon State Bank, all mem­
bers of the Abbott group of banks.
Mr. Sudman began his banking ca­
reer in 1921 with the Nebraska State
Bank in Oshkosh. In 1929 he joined
the Abbott banks at the Guardian
State Bank in Alliance. He began as
an assistant cashier and was named
president in 1960 and chairman last
Mr. Sudman is succeeded by Paul
M. Hefti as chairman at the Alliance
bank and president at the Valentine
and Hemingford banks, and by L. A.
Brooks as president of Gordon State
Bank. Mr. Hefti is also president of
the Bank of Chadron and the Anchor
Bank of Merriman, both Abbott banks,
and is a director of all 11 Abbott
banks. Mr. Brooks has been execu­
tive vice president of the Gordon
State Bank.
Abbott Banks also includes banks
at Scottsbluff, Hyannis, Mullen, Thedford, and Winner, S. D.

Loans Show Nebraska
Credit “ Not Tight’ '’
State Banking Director C. R. Haines
last month reported that. Nebraska’s
308 state-chartered banks increased
their loans by $43.8 million to $523.7
million for the year ending June 30.
The increase represents a 9.1 per cent
jump over June, 1967. Mr. Haines
said the figures show that the tight
credit problem confronting the coun­
try has had little impact on Nebraska
the past year.
Total resources of Nebraska state
banks showed a 12.1 per cent increase
for the year, going from $893.6 million
to $1,007.6 million. Deposits showed
a comparable increase, rising from
$791.4 million to $896 million, a growth
of 13.2 cer cent. Mr. Haines’ report
said that the capital, surplus, undi­
vided profits and reserves reached
nearly $100 million during the year.

William Huffman has joined Guard­
ian State Bank of Alliance as a vice
president in the commercial loan de­
partment. Mr. Huffman has been
with the First National Bank of
Mitchell for 19 years, most recently as
cashier. Prior to that he was with
the National Bank of Neligh and the
Nebraska State Banking Department.

Added to Havelock Staff
Wayne Matthes of Norfolk has been
added to the staff of Havelock Nation­
al Bank, according to A. C. Eichberg,

W ill Join Gibbon Bank
John Power has been employed by
the Exchange Bank of Gibbon and
will enter the bank’s training pro­
gram November
1, a c c o r d i n g to
R o n a l d E. By­
croft, p r e s i d e n t
of the bank.
Mr. Power, 28,
is a native of Gibbon and w as
graduated f r o m
the University of
Nebraska with a
B.S. d e g r e e in
Business Admin­
istration in February, 1963. He will be
assigned work in bank operations as
well as in the Gibbon Insurance Agen­

H u tte S ta te H ank P la n s Hai M int/

SKETCH of Butte State Bank, Butte, Nebraska.

Sidney National Is Sold
Controlling interest in The Sidney
National Bank has been sold by Ed­
ward Brodkey of Omaha, who was
chairman of the bank, to Robert C.
Conrad of Bancroft, Neb. Mr. Conrad
will become chairman of the board and
Federal Reserve Bank of St. Louis


ONSTRUCTION began September
1 on the new building for the
Butte State Bank, Butte. Completion
is scheduled for February 1, accord­
ing to J. G. Bewster, president.
The building is to be constructed on
a corner northwest of the new Boyd

County Courthouse. The plan in­
cludes two vaults, a drive-in window
and an after-hours depository. Keith
Titus of Valentine is the architect,
and Mobil Construction Company of
Butte is the general contractor.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , J 968



HE First National Bank of Omaha
will hold its 10th annual Beef
Cattle Conference and Forum of Fi­
nance Thursday, September 12. Fea­
tured speaker at the Men’s Forum of
Finance luncheon will be Dr. James
J. O’Leary of Lionel D. Edie Company,
New York, which
provides econom­
ic i n f o r ma t i o n
and c o n s u l t i ng
service for busi­
nesses t h r o u g h ­
out the country.
Dr. O’Leary at­
tended Wesleyan
Un i v e r s i t y and
and Duke Univer­
sity, and is a for­
J. J. O ’ L E A R Y
mer t eac he r of
economics at both schools. Since
World War II he has been a frequent
consultant on financial and economic
matters to the U. S. Treasury, the

Federal Reserve Board, the Presi­
dent’s Council of Economic Advisors,
the Bureau of the Budget, the Federal
housing agencies and several Con­
gressional committees. He is a for­
mer president of the American Fi­
nance Association and a former chair­
man of the Conference of Business
Economists, and is active in numerous
business and financial associations.
Over 500 Omaha-area businessmen
and Midwest bankers are expected for
the conference. Bankers from eight
states have been invited.
The Beef Cattle Panel presentation,
devoted to beef cattle trends and out­
look, will begin at 2:30 p.m., with
Mervin P. Aegerter, second vice pres­
ident of the bank, as the moderator.
Other panel members include: Ralph
Kissinger, Jr., feeder from Fairfield,
Neb.; K. H. Dietz, executive vice pres­
ident, Walcott Savings Bank, Walcott,
Iowa; Gene Futrell of the Cooperative

Orders E xecuted on A ll Principal Exchanges

Extension Service, Iowa State Univer­
sity, Ames; William E. Gray, manager
of the beef division, Wilson & Com­
pany packers of Chicago, and B. T.
Buell, Rose, Neb., rancher.
Because of the current strong fed
cattle and feeder cattle prices, rela­
tively low feed prices, and likely build­
up in fed cattle supply late in the sea­
son, it is believed that businessmen
and bankers, as well as cattle feeders,
will have more questions than usual
concerning supplies and trends in cat­
tle prices during the coming year.
An additional feature of the Beef
Cattle discussion will be the “Crystal
Ball Gazing Contest” for those bank­
ers present, with a trophy going to
the winner. Evening activities will
include a cocktail hour, followed by
dinner and entertainment for the
banker guests and their wives.


412 Farm Credit Building, Omaha, Nebraska 68102
Phone 346-6677 (Area Code 402) Teletype 402 348-1040
O th e r O ffice s L o ca te d in




Northwest ern Banker, Se ptem ber, 7968
Federal Reserve Bank of St. Louis


South Dakota



First Nebraska Securi ti es, Inc.,
Omaha investment banking firm, has
entered the mutual fund business.
The company recently p ur c ha s e d
Fund Management, Inc., from Life In­
vestors, Inc., of Cedar Rapids, Iowa.
Fund Management is manager of
First Security Growth Fund, Inc.,
which has a net asset value of $160,-



C. F. H E I D E R

R. A. W E S T C O T T

First Nebraska will operate Fund
Management as a subsidiary. The
transaction is subject to approval by
the Securities and Exchange Commis­
Officers of the growth fund are
Charles F. Heider, president; Richard
A. Westcott, Dwaine Rogge, and Roy
J. Murphy, vice presi dents, and
Charles J. Burmeister, secretary-treas­
urer. All are associated with First
Nebraska Securities.

( i i i i j ;s v < o h i » v y y





Two longtime employees of the U.
S. National Bank recently retired.
Leaving the bank after 42 years is As­
sistant Vice President Thomas Gordon Johannsen. Mr. Johannsen was
manager of the bank’s discount loan
department. He served that depart­
ment since 1943, and has been its man­
ager since 1950.
Paul A. Grassman has retired after
28 years as the bank’s chief engineer.





We bring our computer centers to users in
regular meetings such as this recent one in
Kearney, Nebraska. Continuous communi­
cation and interchange of ideas with our
users enables us to do more jobs better.
If you’re interested in getting information



about how our computer services take over
routine, time-consuming tasks, increasing
the efficiency and productivity of your staff
and supplying you with more facts to oper­
ate better, contact our Correspondent Bank­
ing Department.

Omaha National BANK

Federal Reserve Bank of St. Louis


Omaha, Nebraska 68102

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968


N ebraska

N ews

Both men were honored by the bank
with a farewell party.


Omaha National until 1964, when he
became executive vice president and
cashier of the West Omaha National
Bank. Mr. Rebensdorf was owner
and operator of Provident Loan and
Finance Company before joining the


Tom W. Allen has been appointed

assistant trust of­
ficer at the First
National Bank of
Canada. Mr. Al­
len j o i n e d the
firm of S t o r zWochob - Bender
in 1961, and con­
tinued with First
Nebraska Securi­
ties, Inc., a f t e r
t h e t w o firms





Herbert H. Davis, Jr., president of

Kirkpatrick, Pettis, Smith, Polian,
Inc., has been elected a governor of
the Investment Bankers Association
of America.
Mr. Davis will represent five states
on the board when he assumes office
at the group’s annual meeting in Mi­
ami, Fla., in December. He is also
president of the Nebraska Investment
Bankers Association.


Bruce E. Barks and George Rebensdorf have been named second vice


presidents at the Omaha National
Mr. Barks was assistant cashier at



The First National Bank has formed
a holding company that intends to ac­
quire control of the bank, according

to E. Phillips Giltner, bank executive
vice president.
The plans have been approved in
principle by the bank’s board of di­
rectors, and other necessary steps
will be taken, including the filing of
a registration statement with the Se­
curities and Exchange Commission in
the near future.
The new company, First National )~
of Nebraska, Inc., has an authorized
capitalization of $5,000,000. This con­
sists of 1,000,000 shares at a par value
of $5 each.
The incorporators, all directors or L
officers of the bank: John E. Davis,
John R. Eauritzen, Thomas E. Davis,
Edward J. Carlson, Bruce R. Eaurit­
zen, Varro H. Rhodes, Donald W.
Ryan, Ernest T. Tanner, Fred W.
Thomas, Charles K. Voorhees and Mr.

O. A. Cooper Company Gains



Servicing the M id-States A re a
Since 1858


Snap Apart Forms
Continuous Forms
Bank Forms
Office Supplies
Office Furniture


PHONE 342-7123


The O. A. Cooper Company, Hum­
boldt, Neb., feed company, has had a
22.7 per cent increase in profits for
the first six months of 1968 over the
comparable period of 1967, according
to Guy Cooper, chairman. Total feed
tonnage for the same months is up
7.8 per cent.
The board also declared a $12 per
share dividend, compared with $10 in
1967. Between December 31, 1967 and
July, 1968, individual stockholder
numbers have increased 16.21 per
cent. Mr. Cooper stated the firm has
authorized a capital stock increase
from 20,000 to 30,000 shares, at $100
per share.


Incentive Contest Successful



All States

ir s t


e b r a s k a


e c u r it ie s

, I

n c


M em ber N ew Y o rk S to c k E x c h a n g e
a n d o th e r
P r in c ip a l S t o c k a n d C o m m o d ity E x c h a n g e s

Mid-City National Bank of Chicago
recently completed a successful em­
ployee incentive contest, designed to
encourage employees to solicit active­
ly new accounts for the bank. Sev­
eral hundred accounts—including a $3
million deposit, the largest in the
bank’s history — were opened, and
bank employees received a total of
$13,000 in prize money.
The contest, which ran for 90 days,
was inaugurated and directed by Ken­
neth Skopec, vice president. Each
member of the staff was given a large
button with a question mark on it for
the duration of the contest. Largest
prize awarded was $1,700 to Mrs. Kar­
en Teague, a drive-in teller, who solic­
ited the previously-mentioned account
of $3 million.





Lincoln Omaha Hastings Grand Island
477-9221 341-1500 453-3141

Sioux City Atlantic Cedar Rapids
252-4524 243-5500



N o r t h w e s t e r n B a n k e r , S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis



Glenn Yaussi
Chairman and Chief Executive

Paul J. Amen

Commercial Loans
James F. Nissen
Vice President
Senior Loan Officer

L. E. Alford
Vice President

Wilbur H. Baack
Vice President


A. C. Holmquist, III
Vice President

Rodney P. Vandeberg
Vice President

Hale Kreycik
Assistant Cashier

Robert L. Hans
Vice President
Bond Department

Gene C. Eaton
Senior Vice President

Correspondent Banks
Winton Buckley
Vice President

Roy Yaley
Assistant Vice President

Robert S. Hinds
Vice President and
Senior Trust Officer

Herman A. Brockmeier
Senior Vice President

Paul R. Scott
Vice President
Manager o f Computer Services

Loren Anderson
Vice President
Personnel & Operatio.

Ed Huston

When the job is complete and you want to put
everything together in one package, reach for
your stapler to do the job. When you want com­
plete correspondent service in one package,
call NBC to do the job, your Capital City
Correspondent. (402) 477-8911

Assistant Cashier
Transit Department

Melvin Svoboda
Assistant Cashier
Assistant to Division Executive

Richard Wible
Assistant Cashier
EDP for Banks

M em b er F D IC

National Bank
of Commerce

Main B a nk 13th & O S ts . / P a tio O ffic e lO th & O S ts. / Lincoln, N e b ra s k a
Federal Reserve Bank of St. Louis

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968


N ebraska N ew s

A n n ou n ces D eta ils fo r O m aha
F e e d e r C a lf Shore an d Sale


H A R L E S W. O’ ROURKE, vice
presi dent, Union Stock Yards
Company of Omaha, announces that
the 24th Annual Omaha Feeder Calf
Show and Sale will be held October 23
and 24, 1968.
This annual event is recognized as
the top one of its kind in the Corn
Belt area. It is designed to accom­
modate both buyers and sellers. West­
ern producers are afforded a means of
showing their top-quality calves to
4-H and FFA members, as well as to
commercial feeders, at the gateway to
the Corn Belt.
Twenty head—steer or heifer calves
—will constitute an entry. (For com­
petition, entries must be of one sex.)
There is no limit as to the number of
entries by one individual. All calves
entered may be fitted. Calves will be
judged commencing at 9:00 a.m., on
Wednesday, October 23, under the
lights in the sales arena. The sale
will start at 9:00 a.m., Thursday, Oc­
tober 24. Only those calves awarded
blue ribbons will be sold that day. All
others not receiving blue ribbons will
be sold on Friday, October 25, at the
beginning of a special carload auc-

tion sale featuring commercial calves.
Consignors who receive a blue rib­
bon on a pen-of-20 calves will have
the privilege of selling five head as
individuals. The remaining 15 must
be sold in lots of five.
$2,310 in Cash Prizes

Premium money totaling $2,310 will
be offered. Entries must be awarded
blue ribbons to be eligible for premi­
um money. Cash awards will be paid
to six places for each breed in the
steer class and to four places in the
heifer class. Cash awards and tro­
phies will be given for the Grand
Cha mp i o n steers, Reserve Grand
Champion steers, Grand Champion
heifers, and Reserve Grand Champion
heifers. The cash prizes will be fur­
nished by the Union Stock Yards
Company of Omaha, Omaha Live
Stock Exchange, American Angus
Association, American Hereford Asso­
ciation, and American Shorthorn Asso­
A special trophy will again be
awarded the Grand Champion load by
the Stockyards National Bank, Oma­
ha, Neb. This year, for the first time,
the Angus, Hereford, and Shorthorn

Associations will award trophies for
the champion steers and the cham­
pion heifers in each of their respec­
tive breeds.
Judges for the calf show come from
three states. They are: Orville Kal- ~-r
sem, a cattle feeder from Huxley,
Iowa; John Kroner, a cattle feeder
from Mahomet, 111., and Joseph H.
Watson, Cuming County extension r
agent from West Point, Neb. All are
well-known, experienced judges. The
auctioneer will be Colonel Dick Kane,
Wisner, Neb.
The arena in which the sale will be A
held is heated for the comfort of the
patrons and will accommodate over
1,000 persons. Each year it has been
filled to capacity with buyers from
most of the Corn Belt states.
Past shows and sales have drawn
entries fom Colorado, Wyoming, Ida­
ho, Montana, Nebraska, and South
All calves entered in the Omaha
Feeder Calf Show will be given wide­
spread publicity and advertising in ,j(
the Corn Belt states through radio,
magazine, and newspaper media.
Additional information and entry
blanks can be obtained by contacting
Charles W. O’Rourke, at the Union
Stock Yards Company, Omaha, Neb.

Because it’s the only bank in the St. Joseph stock yards, the
First Stock Yards B an k does business w ith them all-sh ipp ers,
feed ers, co m m issio n m en, dealers, traders, T h e
Stock Yards Com pany and the packers.
W hen you need the services of a bank that know s
the livestock industry from one end to the othercall First Stock Yards Bank.

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis



John F. Davis, Chairman of the Board, First National Bank of
Omaha, displays a giant First Charge BankAmericard. The
signature panel accurately portrays the position he holds, that
of MR. AKSARBEN. As President of Ak-Sar-Ben with more
than 50,000 members, Mr. Davis takes pride in the fact that,
during 1967, Ak-Sar-Ben contributed more than $580,000 to
worthy causes, paid more than $1,390,000 in taxes to the
State of Nebraska, and furnished 47 full-time and 975 parttime jobs for a total payroll of more than $1,100,000.

First National Bank of Omaha
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


floor. Parking for 180 vehicles will be
provided on the second through fifth
levels of the building. First Nation­
al’s occupancy will also include the
lower level, where the bank’s vaults
will be installed, and the sixth
through tenth floors, which will con­
tain executives offices, the commercial
loan, mortgage loan, correspondent
bank, trust, municipal bond and investment departments, the computer
center, and other operating depart­
ments. The building will have 290,000 square feet.

L in c o ln N e w s


HE First National Bank & Trust
Company has announced comple­
tion of negotiations with David Mur­
dock,Murdock Development Compa­
ny of Phoenix, Ariz., to construct a
new 20-story bank-office building at
13th and M Streets in downtown Lin­
The building, to be named the First
National Bank Building, will be
owned and managed by Murdock De­
velopment Company; First National
Bank & Trust, which will move from
its present build­
ing at 12th and
N Streets, will be
the principal oc­
cupant under a
long-term lease.
Under separate
Fi r s t Nat i onal
has sold its pres­
ent building and
p a r k i n g facility
to Central Tele­
phone and Utilities Corporation, which

will take occupancy when the bank
moves to its new quarters. Central
Telephone and Utilities will use the
property to house its national operat­
ing headquarters and its local gas
utility office.
In r e v i e w i n g the circumstances
leading to First National’s decision to
move into the new building, bank
President Burnham Yates noted the
growth being experienced in all areas
of the bank made it evident that
First National was running out of
space. Though four floors of the pres­
ent bank building are leased to ten­
ants, Mr. Yates said the bank felt that
to displace these tenants would se­
verely deter the future development
of downtown Lincoln.
Architecturally, the new building is
described as a square tower with the
externor being formed from vertical
concrete ribs that will frame bronze
thermopane glass panels. The main
entrance will lead into a spacious mar­
ble, glass and terrazzo lobby, which
will serve as First National’s banking


Street 115 W . 21st Stre e t


N o r t h w e s t e r n B a n k e r , S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


1200 " Q "




20-story high rise First Natl. Bk. bldg,
planned for downtown Lincoln. The build­
ing will be a bank-office building with the
principal occupant to be the First Natl.
Bk. & Tr. Co. of Lincoln.


Our Nebraska Municipal Team:
Top to Bottom
Howell P. Roberts
William J . Gourley
John J . Frenking
Tad R. Dunham
Harry F. Ware
George E. Knack

1605 Howard


The remaining floors will be de­
voted to rental office space, except for
the top floor, which will feature a din­
ing room for the bank and club facil­
ities for all building tenants. Interi­
ors for the building will be specially
planned. Current plans call for construction to begin early this fall, with
completion scheduled for early 1970.

Specialists in
Pyram iding

133 Park Bldg.
Council Bluffs

218 Badgerow
Sioux C ity





The National Agriculture Youth In­
stitute was held in Lincoln August 516. The NAYI was first held a year
ago to acquaint outstanding young
men from Nebraska and around the
nation with the opportunities in agri­
culture and allied businesses. Fiftysix Nebraska high school juniors from
47 counties were selected as hosts for
the 55 visiting youths from 44 other
states, Japan and Puerto Rico. Dele­
gates to the institute were selected
by deans of agriculture at land-grant
colleges or by the interested states’
This was the second annual session







| J r^ ^
’ ;îï-


Meet Wilber Carley




Roger Cunningham

...a key man on the team
at the
Lyle Stoneman

Wilber E. "Bill” Carley is Vice President and General
Manager of our Lincoln Tour & Travel Division. He’s a
widely recognized expert in his field...knows from per­
sonal experience how to best get to virtually any place
in the world...and where to stay and what to see when
you get there.


A. S. Chaves

Dale Shoemaker

Bill, who is a graduate of the State University of Iowa,
began his career in the travel business with United Air
Lines in 1946. In 1950, he became associated with Lin­
coln Tour & Travel and was appointed a Vice President
of First National when the Bank acquired Lincoln Tour
& Travel in 1965.
Over the past 22 years, Bill has arranged travel accom­
modations for tens of thousands of people who have
visited virtually every point on the globe. They have
liked the way Bill has handled their arrangements, as
witnessed by their relying on his recommendations for
trip after trip after trip.
For your next or pleasure...discuss your
plans with Bill Carley or with other experienced mem­
bers of our Lincoln Tour & Travel staff.
You’ll find they are people of action who
get things done and done right.

Lester Curran




m p a n y of Lin co ln

S, T r u s t C

12th a n d N Street • Lincoln. Nebraska



ber: F D.l.C.


Robert Johnson

William Edgecomb

■.l a


+ r&

Max Schneider

..:i ;

Í° \

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


N ebraska N ew s

of the institute, which is headquar­
tered at the University of Nebraska’s
East Campus in Lincoln.
Winton W. Buckley, vice president
of the National Bank of Commerce,
was chairman of the farm credit panel
for the event.



To permit the National Bank of
Commerce Trust & Savings Associa­
tion to broaden the services which
can be performed by the bank, the
bank’s board of directors is proposing
to its stockholders a complete re­
formation of its corporate structure.
A one-bank holding company is be­
ing proposed, with present bank stock­
holders owning shares in the bank
holding company
rather than the
p r e s e n t bank.
The holding com­
p a n y in t u r n
wo u l d o wn the
present bank and
have capacity to
ow n shar es in
ot her c o r p o r a ­
tions p r o v i d i n g
such services as
computer proces­
sing, real estate, insurance, leasing,
credit cards, travel agency, bank man­
agement or mutual fund sales.
The announcement was made to
stockholders in a letter August 17
from the chairman of the board, Glenn

A two-thirds vote of the stockhold­
ers is required to implement the re­
formed corporate structure. The
board has indicated its intention to
raise the present cash dividend by 10
per cent after the corporate changes,
which include an exchange of two
shares in the holding company for
every share in the present bank.
National Bank of Commerce com­
mon shares currently sell around $38
a share and the current dividend rate
is $0.80 a share.

Approximately four to six months
would be required for a complicated
series of legal steps to be completed
to effect the change in corporate
structure. The following series of
proposed steps have been reviewed
with the Comptroller of Currency in
Washington whose approval is re­
quired under National Bank law,
along with other federal agencies.
1. NBC Company, a business corpo­
ration, would be formed as the hold­
ing company and incorporated under
Nebraska law.
2. A new temporary bank would be
chartered under National Banking
law to complete a merger with Na­
tional Bank of Commerce Trust and
Savings Association.
3. A merger agreement would be
consummated and approved between
the two banking corporations, at
which time shareholders of National
Bank of Commerce Trust and Sav­
ings Assocation would receive two
shares in the holding company for ev­
ery one share of bank stock they now
own as a tax-free exchange. Any
stockholder not electing this exchange
would be paid an equivalent amount
in cash rather than stock under pro­
visions of the National Banking Act.
The effect of this is to make the new
bank a 100 per cent owned subsidiary
of the new holding company without
any minority stockholders, except
those shares needed for qualifying di­
rectors during their term of office.
Directors of the present bank would
continue as the directors of the new
holding company and bank.
At the same time capital and sur­
plus of the new bank would be in­
creased from the present $6,811,000 to
$7,200,000. Capital and surplus of the
holding company would be in excess
of $12,500,000. The holding company
will have a $250,000 debt, the amount
of capital of new bank corporation.
The bank letter said that the bank
had no specific plans at the present

We can help you . . .


time to engage in broader forms of
business but was taking the necessary
first step corporatewise to be able to
do these functions.



Hale Kreycik, president of the Lin­

coln chapter of the American Insti­
tute of Banking and assistant cash­
ier at the National Bank of Com­
merce, has a n n o u n c e d that AIB y
classes are beginning the first week
of September. As in the past, each
class is meeting once a week for 14



First National Bank & Trust Com­
pany will hold its ninth Correspond­
ent Bank Conference in Lincoln Sep­
tember 13-14 at the Lincoln Hotel.
The theme of this year’s conference
will center on football: following the
Friday men’s luncheon Bob Devaney,
head football coach at the University /
of Nebraska, will speak on “Cornhuskers — ’68.” Nebraska plays its first
home game Saturday, September 14,
against Wyoming, following the close
of the conference.
Consistent with the football theme,
the “First Half Kick-off” will be led
by Sam Waugh, Washington consult­
ant to the Bank of New York inter­
national department, who will speak
on the international trade situation.
James Monroe, director of the Nebras­
ka Department of Economic Develop- K
ment, will discuss “ Industrial Devel­
opment in Nebraska.”
Saturday morning will highlight a
breakfast for guests, followed by an
agricultural panel entitled, “What
Are We Going to Produce and What
Are We Going to Do With It?” The
panel will be moderated by Dean E.
F. Frolick of the University of Ne­
braska’s Department of Agriculture
and Home Economics. Raymond J.
Doll, vice president and senior econo­
mist of the Federal Reserve Bank of
Kansas City, will present material on \
“Opportunities in Agriculture and
Beef Cattle Industry.”
A ladies’ luncheon will be held on
Friday at the “Top of the First,”
eighth floor of the First National
Bank. Bankers and their wives will
close the conference with a “Kick-Off
Luncheon” on Saturday.

Sound investment planning . . . without charge
Begins Drive-In Expansion
The Commercial National Bank and
Trust Company of Grand Island has
begun demolition of a building adjoin­
ing its present quarters. Enlarged
drive-in facilities and parking area
will occupy the space. An area for
walk-up customers and five drive-in
lanes will be featured, according to
W. W. Marshall, Jr., president.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis




J e r r y W a rd

Let these Commerce Trust idea men
make a Bond connection for you

Commerce Trust idea men like Ambrose Rucker,

their big-volume operation in governments and munic­

Gordon Thompson and Dave Bryan get their bright

ipals, Commerce Trust can help you with your bond

Bond ideas from Jerry Ward, vice president and head

needs. Call any of these Commerce Trust idea men

of the Bond Department at Commerce Trust. Through

when you have questions about Bonds.

The wonderful world of banking is yours at

Kansas City, Missouri
Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 7968



when it’ s time to
stock pastures or
feed lots in your

Yes, when you're considering financing calves or
feeder cattle depend on us for whatever help you
need. W e know the "ins and outs" . . . know the day
to day adjustments necessary . . . in the Iowa cattle
Depend on us for all your other correspondent
services too . . . we're confi­
dent we can make some points



Vice President

'Des Moines largest
locally owned

Bankers Trust co.

M em ber: F . R . S . & F. D .I. C.

N o r t h w e s t e r n B a n ke r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

Bank Officer





S ta rt

Des Moines

H ank T raining C ou rses

c o n c e p t in p r o v i d i n g
courses in principles of bank op­
erations has started in the central
Iowa area.
The American Institute of Bank­
ing, the Iowa Bankers Association
and the Area XI Community College
are cooperating by conducting the
study courses on the basis of one
meeting a week for a period of 14
weeks. A class of 24 students will be
meeting each Tuesday evening from
7 p.m. to 10 p.m. at the First National
Bank, Ames. The instructor is Dan
Kreiger, assistant vice president of the
A certificate from the Area XI Com­
munity College will be awarded to all
who successfully complete the course.
The course also applies toward an
AIB certificate. Cost of the course is
$25, including textbook and all other
fees. Instruction is designed for bank
employees who wish to advance in
their profession.
It is anticipated that similar pro­
grams will be established in other sec­
tions of the state, and further infor­
mation may be obtained by writing
Arthur E. Lindquist, Jr., secretary,
Iowa Bankers Association, 630 Lib­
erty Building, Des Moines.

Lee County Building Started
The Lee County Savings Bank has
begun work on the construction of its
new building, according to plans an­
nounced last April. Bank officials
said actual construction of the build­
ing itself will begin sometime this

Bank Offers Maps
It has been announced by Jim Lipton, Jr., evecutive vice president of
Ida County State Bank, Ida Grove,
that the bank will give new 1968 plat
maps of Ida County free to everyone
at the Ida County Fair. The new
maps are the most recent drawings of
the county.

Dubuque Bank to
Build Office
The Dubuque Bank & Trust Com­
pany has received permission to es­
Federal Reserve Bank of St. Louis

tablish a banking office in the Ken­
nedy Mall Shopping Center. Bank
President William R. Jansen said the
bank hopes to have the office in oper­
ation before the end of the year.

Ottumwa Banker Retires
Frank M. Pollard, vice chairman
and chief administrative officer of the
Union Bank & Trust Company in Ot­
tumwa, retired August 31. Mr. Pol­
lard will continue
to be a director
of the bank.
Mr. Pollard began w o r k i n g
with the Ottum­
wa Savings Bank
in 1933 as a clerk.
When that bank
merged with Un­
ion Bank & Trust,
he was named a
F. M . P O L L A R D
teller. Mr. Pol­
lard was elected vice president and
cashier of the bank in 1947.
His grandfather, Frank Mclntire,
organized Ottumwa Savings Bank in
1887. His father, Hervey Pollard, was
also an Ottumwa banker, serving as
an executive officer of Union Bank &
Trust until his death in 1952.
Mr. Pollard intends to pursue variour personal interests in his retire­

Named to
Grundy Center Board
Dr. Don M. Geer, Grundy Center
dentist, has been named to the board
of the Farmers Savings Bank of
Grundy Center. He s u c c e e ds H.
Adolph Mertens, who will be retained
as a consultant.

Retires After 51 Years
After 51 years as a Cedar Rapids
banker, Stanley Mohrbacher has re­
tired from the Merchants National
Bank. Mr. Mohrbacher, vice presi­
dent and head of the installment loan
department, began his career with
Merchants National in 1917 as a mes­
senger. By the time he was 19 years
old, he was head teller of the bank.
Mr. Mohrbacher explained his “bank

education” of 50 years ago as “where
you move from department to depart­
ment and learn as much as you can.
The depression was part of the bank­
ing education, as well as four wars.”
In 1939 Mr. Mohrbacher founded
the installment loan department of
the bank, and he has headed it ever
since that time. He is a member of
the Cedar Rapids Credit Association
and of the advisory board to the cred­
it consumer committee of the Ameri­
can Bankers Association.

Fete Rippey Banker
For 5 0 Years of Service
On August 13 the First National
Bank of Rippey held a dinner in hon­
or of Max Riley and his wife on the
occasion of his 50th anniversary as a
director of the bank. Mr. Riley has
also been president of the bank since
1930. Clark Bardole, cashier, spoke
at the dinner and read a letter of con­
gratulations from Arthur Lindquist,
secretary of Iowa Bankers Associa­

Bank W om en Slate Meet
For September 1 8 -1 9
The Iowa group meeting of the Na­
tional Association of Bank Women
will be held September 18 and 19 at
the Holiday Inn in Cedar Falls. Wil­
liam McKinley, mayor of Cedar Falls,
will deliver a welcoming address.
Miss Mavis Holmes, associate dean of
students at Northern Iowa Univer­
sity, will speak on “Women—Facts,
Fancies, and Forecasts.”
Speakers at the evening banquet on
September 18 include Arthur E. Lind­
quist, secretary of the Iowa Bankers
Association; Mrs. Lillian L. Watkins,
president of the National Association
of Bank Women, and Frances Mc­
Carty, regional vice president of the
The main address of the evening
will be delivered by Eads Poitevent,
president of the International City
Bank of New Orleans, who will speak
on ideas and marketing techniques
which have made his bank famous.
Other speakers and their topics in­
clude: Mrs. Aurelia Klink, instructor
in office education at the University
of Northern Iowa, “Forgotten, But
Not Gone,” a look at what makes
good executives; Mrs. Lucille Potts,
vice president, Poweshiek County Na­
tional Bank, Grinnell, “Women’s Ac­
tivities”; Mrs. Lilli Ann Ayres, former
executive secretary of the Modeling
Association of America and founder
of the Scholarship F o u n d a t i o n of
America, “The Challenge of Sense—
Not All Cents.”
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968


Iow a N ew s

K. G. C O N E


C. F I S K E

R. L. S E L L O N

W . D. K I N G

W . B. G I B S O N


1 3 th A n n u a l Io w a


Kirkwood Hotel


September 111 and lit

Wednesday, September 18

Truth in Lending and Interest Rates, leader—
Wendell B. Gibson, general counsel, Iowa Bank­
ers Association.
Automatic Credit Banking, leader—Richard L.
General Discussion—leader—Arthur E. Lind­
quist, Jr., secretary, Iowa Bankers Association.
Each of the discussion leaders will be assisted by
members of the Installment Loans Committee.


8:00 Registration—Main Floor, Kirkwood Hotel, Des
9:00 Call to Order—Presiding—Gerald D. Nelson, chair­
man, Installment Loans Committee, Iowa Bankers
Association, vice president and manager, install­
ment loan department, First National Bank, Mus­
Word of Welcome—James W. Lipton, Jr., vice
president, Iowa Bankers Association, executive
vice president and cashier, Ida County State Bank,
Ida Grove.
9:15 Bankruptcy Law Developments—Richard F. Stageman, referee in bankruptcy, United States District
Court for Southern District, Iowa.

Coffee Break.
Check Guarantee and Overdraft Banking— Richard
L. Sellon, vice president, Iowa-Des Moines National

Bank, Des Moines.




The Uniform Commercial Code and the Credit Card
—Eric E. Bergsten, associate professor of law, Uni­
versity of Iowa, Iowa City.
Recess for Lunch.

Presiding—Willard D. King, immediate past chair­
man, Installment Loans Committee, Iowa Bankers
Association; vice president, Davenport Bank and
Trust Company, Davenport.
Five Years Ahead—Keith G. Cone, senior vice
president, LaSalle National Bank, Chicago, Illinois.
Workshops—Uniform Commercial Code, leader—
Eric Bergsten.

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis



5:30 Cocktail Hour in the Garden Room.
6:30 Banquet—Presiding—Leo M. Baldwin, vice chair­
man, Installment Loans Committee, Iowa Bankers
Association; vice president, Fidelity Savings Bank,
7:30 The Mitchell County Barter Card—Carl F. Conway,
notary public and attorney at law, Osage, Iowa.



Thursday, September 19

Registration desk open.

9:15 Presiding—Chairman Gerald D. Nelson.
9:20 Word of Welcome—Oliver A. Hansen, president,
Iowa Bankers Association; president, Liberty Trust
and Savings Bank, Durant.
9:30 Bank Automation—Donald C. Fiske, vice president
in charge of Data Services Division, Texas National
Bank of Commerce, Houston, Texas.


Coffee Break.

10:45 Public Relations and Marketing—Walter J. Con­
nolly, Jr., senior vice president, The Connecticut yJA
Bank and Trust Company, Hartford, Connecticut.



Y e s . . . We Have Help
for Your Instalment Loan Department
on Accrual Accounting!
The Comptroller’s ruling on accrual accounting will mean
changes in methods for all na­
tional hanks . . . and eventu­
ally for state hanks as well. LET

On May 1, 1967, the Comptroller of
the Currency issued regulations that w ill
require national banks to adopt accrual
accounting, particularly in regard to
accrual of tax liability. Banks on a cash
basis will not be required to put all
items of expense and income on an
accrual basis, but by implication they
must comply in order to meet the re­
porting requirements of Section 18.7 of
the Comptroller’s ruling.
One of the departments of your bank
particularly affected by this ruling will
be your instalment loan department,
where accrual of income will now be­

We are

p lea sed

has su rp a sse d



come necessary in order to comply with
tax reporting. In this department, we
can offer your bank a tried-and-tested
program (the Cummins Bankers Busi­
ness Service program) that will provide
your bank with detailed information on
monthly accrued income (plus other
valuable accounting and management
information) calculated on the 12/78s
We invite you to discuss this with
your National Fidelity man the next
time he calls, or a note or phone call
to our home office will bring full infor­

a n n o u n ce th a t the N a tio n a l F id e lity

b i l l i o n d o l l a r s o f l i f e i n s u r a n c e in f o r c e .

N a tion a l F id e lity


ranks a m o n g th e to p


o f A m e r ic a n a n d C a n a d ia n life c o m p a n ie s


$44.6 Million


$7.1 Million

More than 3,200 midwestern banks are now using the broad
insurance portfolio of NFL! Let us show you how NFL programs
can benefit your bank. Drop a note to our home office.

One of the Nation’s Strongest by Any Standard o f Comparison

^ a tio n a l fidelity \ j f e
Federal Reserve Bank of St. Louis


N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968

Savings Bank and later at the Iowa
National Bank. When Iowa National
merged with the former American
Commercial Bank, he was elected an
officer. He was appointed cashier ox
the Davenport Bank & Trust Company when it first opened in 1932, and
was elected a director in 1933. In
1942 he was elected vice president.
Mr. Staak died after a brief illness.



Harrison County Officers

Des Moines News
HE election of John B. Roberts,
T Jr.,
as a trust investment officer
of Central National Bank and Trust
Company was announced last month
by B. C. Grangaard, chairman
and president.
Mr. Roberts, a
native of Padu­
cah, Ky., and a
graduate of the
U n i v e r s i t y of
Kentucky, comes
to Des Moi nes
f r o m Louisville,
j. Ro b e r t s
w h e r e he has
held a similar po­
sition with the Louisville Trust Com­
pany for the past three and one-half
Prior to that, Mr. Roberts was asso­
ciated with the trust departments of
Planters Bank and Trust Company of
Hopkinsville, Ky., and the First Se­

curity National Bank and Trust Com­
pany of Lexington.
He will assume his position with
the bank this month.



The Des Moines chapter of the
American Institute of Banking held
a membership and get-acquainted pic­
nic at the Izaak Walton League in
Des Moines, August 22. More than
200 bank officers and employees at­
tended the event. Following the so­
cial hour and picnic meal, Donald H.
Jordahl, president of the Des Moines
chapter, introduced the new officers.

Herman Staak
Services were held August 9 in
Trinity Episcopal Cathedral for Her­
man Staak, 82, senior vice president
of Davenport Bank & Trust Company.
Mr. Staak had been a Davenport
banker for 63 years. He began as a
messenger at the former German



All States

ir s t


e b r a s k a


e c u r it ie s

, I

n c


M em b er N ew Y o rk S to c k E x c h a n g e
a n d o th e r
P r in c ip a l S t o c k a n d C o m m o d ity E x c h a n g e s

Omaha Hastings Grand Island
477-9221 341-1500 463-3141

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis

Sioux City Atlantic Cedar Rapids
252-4524 243-5500

The Harrison County Bankers As­
sociation recently met at Missouri
Valley and elected officers for the
coming year. Edward Wood, vice
president of the First National Bank
of Logan, was elected president. Rob­
ert E. Brown, assistant cashier at the
First National Bank of Missouri Val­
ley, was named Secretary-Treasurer.
Outgoing President William Ryan,
cashier, Home Savings Bank of Per­
sia, presided at the meeting.

Joins Lohrville Bank
Arley Barker has been named farm
representative by the Lohrville Sav­
ings Bank. For the past three years
Mr. Barker has been manager of Cynamed Farm Supply Company in

Elected at Marcus
Paul Arndt was recently elected as­
sistant cashier at the Farmers State
Bank in Marcus. Mr. Arndt has been
with the bank three years.

Promoted at Marion
Clair J. Lensing was promoted from
vice president to executive vice presi­ V
dent last month by directors of the
Farmers State Bank at Marion, ac­
cording to an announement made by
Morris Neighbor,
president, follow­
ing t h e b o a r d
Mr. L e n s i n g
joined the bank
in D e c e m b e r ,
1966, as a vice
p r e s i d e n t . He A
we n t wi t h the
Iowa department
of banking as an
assi stant bank
examiner in 1957 and was promoted Vto senior examiner in 1962, the posi­
tion he held until moving to Farmers
State Bank.
He is a graduate of the Agricultur­ *
al Credit School of Iowa State Uni­
versity at Ames and the School of
Bank Examining at the University of
Illinois. Mr. Lensing is secretary of
the Marion Industrial Development A
Corporation and vice president of the
Linn County Bankers Association.


C o m m u n ity ( S e n te r...
. . . that's what Central National Bank and Trust
Company is— for not only over 350 Iowa banks—
but for so many out-of-state banks who help back­
bone the financial business of Iowa. As a Central
National Bank Correspondent, we want you to use
any or all of our facilities. These can include a
meeting room, expert advice from one of our

specialists, any kind of computer service, or our
extensive national and international connections.
These services can be big and vital to your bank.
You'll get fast proof from a call to Dale Smith,
Dick Smith, Eddie Wolf or Pete DeRosier, of our
Correspondent Department. Call 515— 243-8181.

Locust at Sixth Avenue • Des Moines, Iowa
Federal Reserve Bank of St. Louis

Memhpr Federal n p n n iit ln<;iiranre P.nrnnratinn

N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968


Io w a N ew s

2 5 90 0 0


S ee

HEN the Iowa Bankers Assocition became an exhibitor at the
Iowa State Fair for the first time last
month the response from the public
was far beyond expectations. An es­
timated 25,000 persons, plus several
thousand small children, registered at
the booth for a $150 grand prize and
to get information about commercial
The idea for the booth was con­
ceived by the public relations commit­
tee of the IBA and Thomas Wolff,
owner of Thomas Wolff Associates,
Des Moines, public relations consult­

participated. In addition, members of
B a n k B o o th the
a tIBAFheadquarters
a ir
staff assisted at

ant to the association. Chairman of
the committee, which laid its first
plans for the booth a number of
months ago, is Robert L. Davison,
president of the First National Bank
in Clarion. Vice chairman is Bill D.
Paulsen, executive vice president of
the Liberty Trust & Savings Bank at
To staff the booth, members of the
IBA agriculture and public relations
committees worked four-hour shifts
during exhibit hours throughout the
10 days of the fair. Approximately
70 members of the two committees

A CONSTANT STREAM of visitors patronized the Iowa Bankers Association booth at

the Iowa State Fair last month. In photo above,
which each person could register for a $150 grand
was given with each card. After writing in their
the individual then proceeded through the booth to

bankers are handing out cards on
prize. A piece of simulated money
name, address and hometowm bank,
. . .

the exhibit.
It was estimated that the daily aver­
age registration at the booth of 2,500
persons represented about 8 per cent
of the daily new visitors to the State
Fair. The IBA booth appeared to be
one of the top attractions in the
Varied Industries Building, which
housed more than 100 exhibits of busi­
ness firms and associations.
The booth is set up to simulate a
bank. Four bankers were on hand at
all times to hand out simulated money
and registration cards to visitors, who
stood three deep in front of the booth
consistently. After filling in their
name and address and the name of
their home town bank, registrants
then filed through the booth to a de­
posit teller window. At this point
they “deposited” their si mul at e d
money along with their registration
card. A numbered stub bearing a
printed number identical to the regis­
tration card was returned to them as
their deposit receipt. The teller win­
dow is similar to the kind found in
most banks. At this point, the line
passed a display of three lighted pic­
ture boxes that showed with enlarged
color photos three examples of how
money goes through the Iowa econ­
omy. To give the display action that
expresses the high-speed computeriza­
tion identified with modern banks,
an endless belt carried the simulated
money past the display pictures to
give the appearance of the money go­
ing into each of the projects pictured
—farming, business and homes.
The endless belt and photo display

. . . THE DEPOSIT WINDOW where the simulated money and stub from the registration card were “ deposited” with the teller.
The “ customer” then walked to the other side of the exhibit to . . . THE WALKUP WINDOW where he made a “ withdrawal” in

the form of simulated money with a new penny attached, literature on banking from the Foundation for Commercial Banks and an
FDIC pamphlet on deposit insurance.
N o r t h w e s t e r n B a n k e r, S e p t e m b e r , 1968
Federal Reserve Bank of St. Louis


Central National Bankers
are a Bunch of Farmers"
O f course we are. Or, at least, most of us were. That’s what gives us an edge when it comes
to solving agricultural problems. But we’re also bankers. W ith more specialized banking
knowledge than you’ll find in most correspondent groups. W e think that’s a pretty good
combination when it comes to serving country bankers.
"T h e Agriculturally-Trained Agricultural Group” of Central National Bank in Chicago.

120 South LaSalle Street, Chicago, Illinois 60603. 31 2 /7 8 2 -2 5 2 0 .
Member of F. D. I. C. and Federal Reserve System.

Northwest ern Banker, Se pte m ber, 1968
Federal Reserve Bank of St. Louis


Iowa News

led the visitors to the exit side of the
booth, where a glassed-in walk-up
window was set up. At this point,
the visitors showed the teller their
“deposit” receipt stub and she opened
the automatic deal drawer so each
person could remove their “withdraw­
al.” This consisted of banking litera­
ture prepared by the Foundation for
C o m m e rcia l Banks and an FDIC
pamphlet on deposit insurance as well
as a piece of simulated paper money
with a genuine one cent piece at­
The display booth is being made
available by the Iowa Bankers Asso­
ciation to other banker groups for ex­
hibit. Arthur E. Lindquist, Jr., IBA
secretary, said it will be loaned to any
interested state bankers association,
county association or groups of banks,
but will not be available for individ­
ual bank use. The only expense in­
volved for such use will be transpor­
tation and setting-up costs which will
be borne by the group using the
D um ont Banker Burned
Russell L. Harrison, president of
the State Bank of Dumont, was
burned at his home in Hampton re­
cently when gasoline fumes ignited in
his garage. He was reported in good
condition at Franklin General Hospi­
tal following the accident.
Elected Iowa Falls Director
Roger Bjorenson, vice president of
the Iowa Falls State Bank, was elect-

U lte

^ J lo m e


ed to the board of directors last
month. Mr. Bjorenson, who has been
with the bank for 20 years, succeeds
the late Jess Capwell.
Elect Four Directors
Four new directors were recently
elected to the board of Northwestern
National Bank of Sioux City. They
are William A. Amsler, George Davis,
A. C. Dohrmann and Royal Lohry.

Mr. Davis is a partner in the law firm
of Sifford, Wadden & Davis, which is
general counsel for the bank. Mr.
Davis, a graduate of the University of
Iowa College of Law, was corporate
counsel for the City of Sioux City at
one time. He will act as senior legal 'T
counsel for the bank in his new capac­
Mr. Dohrmann is president of the +A. C. Dohrmann Construction Compa­
ny and of the Green Acres Nursing
Home in South Sioux City, Neb. Mr.
Lohry is president of the Kay-Dee
Feed Company and vice president of A
the Nutra Flo Chemical Company.

Chosen Head o f Farm Group
Raymond D. Vanderhorst, director
of the State Bank of Bussey, was
elected president of the National As­
sociation of Agricultural Stabilization /
and Conservation Service at its an- ^
nual meeting last month. The organi­
zation represents 15,000 county office
employees who administer federal
farm programs around the nation.

R. L O H R Y

A. C. D O H R M A N N

Mr. Amsler is secretary-treasurer
of the Zenith Radio Corporation of
Iowa and is active in numerous busi­
ness and civic groups in Sioux City.


J)n áu rance

1222 P St., Lincoln, Nebraska 68501

Capital Increase by
Cedar Kapids Bank
Ted J. Welch, president of the Peo­
ples Bank and Trust Company of Ce­
dar Rapids, announced last month
that the capital stock has been increased from $800,000 to $1,000,000 by
means of a 25 per cent stock dividend.
The bank’s surplus account was also
increased from $1,200,000 to $1,500,000.
Security Sem inar Scheduled
The Iowa Bankers Association has
arranged a Bank Security Seminar in
cooperation with the Federal Bureau
of Investigation. The event is slated
to begin at 9:00 a.m. Monday, Sep­
tember 26, in the auditorium of the
Bankers Life Company building in
Des Moines. Similar meetings are be­
ing held at Cedar Rapids September
24 and Sioux City on October 2. The
IBA is urging bankers to attend the

We are pleased to announce the appointment of

to E xecutive Vice President



to Vice President

to Vice President

Members: Chicago Board of Trade—Chicago Mercantile Exch.

902 Walnut Street

Des Moines, Iowa 50309

Offices in Algona •
Mason City •
Iowa Falls •
Estherville •

Nort hwest ern Banker, Se pte m ber, 7968
Federal Reserve Bank of St. Louis

Mount Pleasant

W . H . Bischel
W. H. Bischel, 70-year veteran of
the banking business, died recently.
Mr. Bischel began his long banking
career in Aurelia, and remained a di­
rector of the First Trust & Savings
Bank there until his death. He was
also chairman and director of the
First Trust & Savings Bank in Galva,
and a director of the First Trust &
Savings Bank in Alta.






We’re Naturally Proud
to be one of the
Fastest Growing
in Iowa!



"W E'R E R E A L L Y R O L L IN G ". . . American Trust provides real

assistance that saves time and money for our correspondents, as
well as personal counseling given freely by our officers. Amer­
ican Trust is a leader in Trust Matters, Women's Business Promo­
tion and can give help in operating procedures or in preparing
an advertising program. These are a few of the many ad­
vantages of a correspondent relationship with the leader in
the Tri-State area . . . American Trust . . . the Bank that has
what you want in a correspondent bank.

A m e rica n T ru st
and Savings Bank

F e d e ra l R e s e rv e S y ste m

Federal Reserve Bank of St. Louis

N orthwest ern Banker, Se pte m ber, 1968


Iowa News

Schedule Two M eetin g s to
IHseuss New f 'own itunking Tode


OWA bankers will have an oppor­
tunity to participate in seminars
on the recodification of Iowa banking
laws at two special meetings this
September 17—Buena Vista College,
Storm Lake.
September 25—University of Iowa
Center for C o n t i n u i n g Education,
Iowa City.
It is estimated that Draft No. 2 of
the recodification will be in the hands
of the Legislative Banking Laws
Study Committee of the Iowa Legisla­
ture by September 9. After their ap­
proval, this draft is to be printed in
quantity and distributed to all Iowa
banks and other interested groups.
The anticipated date for this mailing
is September 10.
The entire recodification will be
discussed in detail at the Iowa Bank­
ers Association state convention the
afternoon of October 29. This recodi­
fication culminates three years of
work and an opportunity by everyone
to make suggestions before final Draft
No. 1 was presented to the Study
Committee in July. Subsequent to
this session, any inconsistencies that
were noted were resolved and lan­
guage clarified where necessary, re­
sulting in Draft No. 2 that will now
be circulated widely.
The recodification effort is a trib­
ute to the untiring work, diligence
and cooperation of several key people
and organizations. In 1965 the Legis­
lative Research Committee of the
Iowa Legislature established a sub­
committee to study recodification and
titled it Banking Laws Study Com­
mittee. Senator Kenneth Benda, a
Hartwick banker (president, Hartwick State Bank), was named chair­
man. The 1967 Legislature confirmed
this action and authorized the use of
a Banking Laws Advisory Commit­
The latter committee is comprised
mainly of bankers, but 10 to 15 repre­
sentatives of other interested busi­
ness groups also were asked to serve.
The bankers appointed to this com­
mittee were those who were members
of the Iowa Bankers Association re­
codification committee, representing
both state and national banks. Chair­
man of this IBA committee is Jack
Rigler, president of Central State
Bank, Muscatine, and vice chairman
is Joe Gronstal, president of the Carroll County State Bank, Carroll, and
a former Iowa banking superintend­
Nort hwest ern Banker, Septem be r, 1968
Federal Reserve Bank of St. Louis

The Study Committee and Advisory
Committee w o r k e d together with
John Chrystal, s u p e r i n t e n d e n t of
banks, and his staff. The principal
worker from the superintendent’s
staff assigned to the recodification ef­
fort has been Holmes Foster, deputy
superintendent. Mr. Chrystal sug­
gested that the College of Law at the
University of Iowa be appointed to
do the technical research and sug­
gested drafting.
Meade Emory, associate professor
of law, and Howard N. Sokol, assist­
ant to the dean of the College of Law,
undertook this assignment. Their
work was sifted through the Study
Committee to representatives of the
state banking department and the
IBA for thorough review of the prac­
tical applications of the law. Changes
were referred back after numerous
consultations and reworking. After
tentative approval from the depart­
ment of banking, a draft was pre­
sented to Senator Benda’s committee
for consideration. The Study Com­
mittee and Advisory Committee un­
dertook a complete review of this ten­
tative draft and returned it to the
College of Law for final drafting.
At the very outset, Senator Benda’s
committee adopted three guidelines:
1. Not to necessarily change bank­
ing laws, but to update them to re­
flect banking practices and trends.
2. Any controversial parts were to
be left out and later might be consid­
ered by the legislature as a whole.
3. Consideration of changes in usu­
ry and interest rates and branch bank­
ing topics were specifically excluded.
The work done by all members of
the committees involved thousands of
man hours of work over the threeyear period. A spokesman said Iowa
banking has enjoyed good banking
laws, most prominent of which is the
office law of the 1930’s. He stated
there has been good adjustment of
banking laws as needed and this has
been a result of the good rapport be­
tween the Iowa Bankers Association,
the state banking department and the
state legislature. The spokesman gave
direct credit for this extended period
of mutual cooperation between bank­
ers, supervisors and legislators to
Frank Warner, who served the Iowa
Bankers Association as secretary for
50 years until his retirement two
years ago. The present recodification,
he said, is an effort to take these sep­
arately passed good banking laws
that were added to Iowa’s original

banking code and consolidate them
into a new recodification that reflects
updated needs.
Draft No. 2 which will be discussed
at meetings this month has been re­
viewed also by Clarence Cosson, Des
Moines attorney who was appointed
to review corporate sections of the
new recodification. He was the attor­
ney who handled the Iowa Business
Corporation law when it was passed
by the legislature.
The meetings September 17 and 25
will review the 18 divisions of the
new code. Presiding will be John
Chrystal, superintendent of banking.
Oliver Hansen, president of the IBA,
will provide a welcome at both meet­
ings. Speakers will be John B. Rigler,
Muscatine, chairman of the Advisory
Committee group; Howard N. Sokol,
and Meade Emory, College of Law, U.
of I.; Wendell E. Gibson, counsel for
IBA; Richard Ackley, Ottumwa bank­
er, president of Iowa Corporate Fidiciaries Association; Holmes Foster,
deputy superintendent of banking,
and Senator Ken Benda. Other mem­
bers of the Study Committee and Ad­
visory Committee will participate in
panels. The meetings will commence
at 9:15 a.m. sharp and adjourn at 4:00
Security National, Sioux
City, Elects Officers
Ronald F. McManamy, Allen Sey­
mour and Michael J. Smith have been
elected assistant cashiers at the Secu­
rity National Bank in Sioux City.
Mr. McManamy joined the bank in
1965 and is employed in the personal
loan department. Mr. Seymour, who
also joined Security National in 1965,
is an investment officer in the com­
mercial loan department. Mr. Smith
is also in the personal loan depart­
ment, and will 'be attached to the
bank’s Morningside office when it
opens later this month.
Lyon County Election
The following men were elected
officers of the Lyon County Bankers
Association for 1968-69; Larry Wenzl,
president, president of Lyon County
State Bank, Rock Rapids; Stanley
Smith, vice president, executive vice
president, Rock Rapids State Bank;
L o u is Kopsas, secretary-treasurer,
Doon office of Rock Valley State Bank.
Outgoing president was Cliff Pruitt,
president of the Inwood State Bank.
A utom ation School H eld
The first Bank Automation School,
sponsored jointly by the University
of Northern Iowa and the Iowa Bank­
ers Association, was held August 6-8
at Cedar Falls.


He brought diplomacy to
a strange new land

Making friends among hostile Indians wasn’t easy. But
LaSalle showed a rare ability to understand complex
problems. A nd that ability enabled him to enlist the
aid o f many Indians during his explorations along the
Illinois river, and the site o f present-day Chicago.

Today, problem solving is no less a vital ingredient o f
success. LaSalle National Bank has the experience and
judgment so essential in the financial world. Talk to
your LaSalle correspondent officer, about putting
LaSalle’s experience to work for you.


135 South L a S a lle S tree t* Chicago, Illinois 60690 «Telephone: 312-ST 2-5200
Member Federal Deposit Insurance Corporation

N orthwest ern Banker, Septe m ber, 1968
Federal Reserve Bank of St. Louis


Iowa News

WINNER in the senior division of the Livestock Judging Con­
test was Dean Engelbrecht (standing left), Eldridge. Second
place went to Larry Mohr (standing right), also of Eldridge,
who holds an additional trophy he won as part of the top senior
judging team. In the front row is Logan Peitscher, who teamed
with two sisters, Sherri (left) and Leanne Weber, to win junior
team judging.

On runt
A nnnut
HE Liberty Trust and Savings
Bank of Durant recently spon­
sored the third annual Tri-County
Livestock judging contest for 4-H and
FFA members in Muscatine, Scott
and Cedar counties, according to Oli­
ver Hansen, bank president and presi­
dent of the Iowa Bankers Association.
Over 175 young people registered
for the event. Six adults also com­
peted in the contest, after which area
farmers were hosts to area business­

L ivestock Judging C ontes
men at a beef barbecue held at the
contest site. This is the first year for
the barbecue, which was started by
the farmers themselves.
In the senior division, Dean Engel­
brecht of Eldridge was high individ­
ual, scoring 289 out of a possible 300
points. Second place honors went to
Larry Mohr, also of Eldridge, with
282 points.
The top senior judging team at the
event was the Sheridan township

4-H team, composed of Merle Keppe,
Larry Mohr and John Keppe, all of
In the junior division, Mark Swan­
son of Walcott was the individual
winner, and runner-up was Tome
Keppe of Eldridge. Two sisters,
Sherri and Leanne Weber, teamed
with Logan Peitscher to win first
place in the junior team judging for
the Pleasant Valley Champions 4-H

LEFT—Tome Keppe, Eldridge, explains to the crowd after judging was completed why he placed gilts as he did. RIGHT— Walter
Olson, a Grand Mound Angus breeder, is shown judging Hereford steer class.
Nort hwest ern Banker, Septem ber, 1968
Federal Reserve Bank of St. Louis


When you want
something from
your correspondent
. . . and you want it fa s t
how long does it take? A
couple of days? A week? Or
when they can “get around
to it?" If speedy service is your
problem, we suggest a quick
call {collect of course) to
Drovers. Fast action is our y *
style of Correspondent
service, and we’ll
stake our reputation
on it.


The Drovers 47th
Federal Reserve Bank of St. Louis

and Ashland • Chicago, /

ft I


Iowa News


Plan Facilitif at

Rates 25 cents per word per
insertion. Minimum: 12 words.
306 15th St., Des Moines, Iowa
Any form you need we stock, or
will print. Special forms then
stocked for prompt shipment on
Box 238, Webster City, Iowa

BOX 8 7 PH. 1-712-2621499
S P E N C E R ,IO W A 51301



"Accepted Sale Registers by Bank
Clerks Everywhere"
For in form a tion w r ite

Oakland, Iowa



jR k G r o s s C o
Waterloo, Iowa

W rite or call collect


K E N N E D Y ROAD F A C IL IT Y —Participating in groundbreaking services for the new

parking lot office of American Trust and Savings Bank, Dubuque, were, in the fore­
ground, Nicholas J. Schrup, pres.; D. W . Ernst, chmn., and Charles J. Schrup, exec. v.p.
Shown from left to right are: Gaylord Couchman, city councilman; and the follow­
ing directors: W . J. Klauer, C. J. Kleinschmidt, D. B. Cassat, R. W . Steele, J. Bruce
McDonald, W . N. Glab, Roy E. Glab, M. L. Kapp, N. J. Greteman, Paul D. Dale and
Christy F. Armstrong. Mr. Armstrong is an exec. v.p. of the bank.
In the background, from left to right, George Deininger, Wm. Lee, Gordon Mills,
architects, and O. M. Conlon, contractor. The drive-up bank facility on Kennedy Road
will have 7,000 square feet of floor space with three drive-up lanes, lobby banking
facilities, offices and three community rooms. Opening is tentatively set for February,

September 5-13— National Automation
School, Purdue University, Lafay­
ette, Ind.

tion, Conrad Hilton Hotel, Chi­
October 27-30— Robert Morris Associ­
54th Annual Convention,
Sheraton Hotel, Philadelphia.

September 22-26— 53rd Annual Con­
vention, B P R M A , Palmer House,
Chicago, 111.

October 27-30— 82nd Annual Conven­
tion, Iowa Bankers Association,
Hotel Fort Des Moines, Des

September 28— Foundation for Com­
mercial Banks, Annual Meeting,
Conrad Hilton Hotel, Chicago.

October 27-30— A B A National Person­
nel Conference, Sheraton-Chicago
Hotel, Chicago.

September 29-October 2 — A B A 94th
Annual Convention, Chicago.

October 28-29— 2nd Annual Uniform
Commercial Code Institute, Park
Sheraton Hotel, New Y ork City.

October 13-17— 46th Annual Conven­
National Association of
Bank W om en, Inc., The Netherland Hilton Hotel,
October 20-23— Bank Administration
Institute (formerly N A B A C ), 44th
Annual Convention, Regency H y­
att House, Atlanta, Ga.
October 20-24 — Consumer Bankers
Association, 48th Annual Con­
The Homestead,
Springs, Y a.
October 21-24— Mortgage Bankers A s­
sociation, 55th Annual Conven-

November 10-12— A B A 17th National
A g Credit Conference, SheratonOklahoma and The Skirvin Hotels,
Oklahoma City, Okla.
November 17-19— A B A Executive Sav­
ings Seminar, Memphis, Tenn.

Confidential Consulting Service
Merchants National Bank Building
Cedar Rapids, Iowa

Nort hwest ern Banker, Septem be r, 1968
Federal Reserve Bank of St. Louis


November 21-22 — A B A Organization
Committee, A B A State V ice Pres­
idents, Officers of State Bankers
Associations, The Biltmore, New
Y ork City.
December 5-6— 3 7 th M i d c o n t i n e n t
Trust Conference, Statler Hilton
Hotel, Detroit, Mich.

Area Code 319






Before 1935 copies o f Iowa Bank
Directory published by Northwest­
ern Banker.

Loan application forms for the
m o d e rn a g r i c u l t u r a l b a n k e r.
Samples on request. Farm Busi­
ness Council, Inc., P. O. Box F,
Urbana, Illinois 61801.

969 Park Circle, Boone, Iowa 50036




t a r u lli

Tom Horn, John Diefendorf, and
Gene Hagen work hard to become
as much involved in our customers’
banking problems as possible. We
feel that the more we know about
your needs, the greater banking
service we can provide. It’s a part
of really caring about helping every
customer. It’s a part of the Security
“ we care” way of helping.






Northwest ern Banker. Se pte m ber, 1968
Federal Reserve Bank of St. Louis


In the
D IR E C T O R S ’

If hat a Bore
Little Tommy had spent his first
day at school.
“What happened?” he was asked
when he returned home.
“Nothin’. A woman wanted to know
how to spell cat, and I told her.”
O f Course Not!
Lady of the house—“Nora, I saw a
policeman in the park today kiss a
baby. I hope you will remember my
objection to such things.”
Maid—“ Sure, ma’am, no policeman
would iver think o’ kissin’ yer baby
when I’m around.”
Followed Directions
Soph—“How does it happen you
came to Harvard? I thought your
father was a Yale graduate.”
Frosh—“ He is. He wanted me to
go to Yale; I wanted to go to Prince­
ton; so, we argued, and he told me to
go to H------.”

Acorn Printing C om pan y.............................104
Allison-William s C om pan y....................... 71
American Courier Corporation ................. 56
American Express Company ...................... 51
American National Bank and
Trust Company— Chicago ....................... 77
American National Bank and
Trust Company— St. Paul ..66, 67, 70, 71
American Trust and Savings
Bank— Du'buque ........................................ 99
Aristocrat I n n s .......................................... 66
Bank of
Bank of


Trust Company— Des M oines.. 90
Trust Company— NewYork . .
M o n trea l..................................... 74
New York, T h e .............................. 53
Central National Bank— Chicago ........... 97
Central National Bank and Trust
Company— Des Moines ............................ 95
Chase Manhattan Bank ............................ 13
Chemical Bank New York Trust
Company .......................................................
Chiles & Company ........................................ 80
City National Bank and Trust
Company— Kansas City .......................... 45
Commerce Trust Bank ................................ 89
Commercial Discount Corporation . . . . 21
Continental Illinois National Bank
and Trust Company .............................14-15
Continental Western Insurance
Company ....................................................... 12
Conway Brothers— First of Iowa
Corporation ............................................ .. . 98
Cooper F e e d s .............................................. 28
Northwestern Banker, Se ptembe r, 1968
Federal Reserve Bank of St. Louis

Strange Feeling
Frosh—“ I woke up last night with
the feeling that my watch was gone,
so I got up and looked for it.”
Soph—“Well, was it gone?”
Frosh—“No, it was going.”

Please, Daddy
Daughter to father—“ Daddy darling,
Jack and I love each other, and we’ve
come to ask your consent. W e’ve been
married to each other for a month, so
we’re sure we’ll be happy.”

Ready Reply
“How can I pay when I haven’t got
any money?” said the debtor. “You
can’t get blood out of a turnip.”
But the collector was ready for him:
“You’re not a turnip; you’re a beat.”

Visitor—“Well, Joe, how do you like
your new little sister?”
Joe—“Oh, she’s all right, I guess.
But there are lots of things we needed

A Real Loss
Ruth—“ I had an ideal once.”
Rose—“How did you happen to lose
Ruth—“ I married it.”
“ M e First”
Wife (on a boating excursion)—“ If
the boat foundered, who would you
save first, the children or me?”

It Wasn't Funny
Little Bobby ran to his mother, sob­
bing as though his heart would break.
“Why, what’s the matter, Bobby?”
asked his mother.
Oh, daddy was hanging a picture
and he dropped it on his toes,”
answered Bobby between sobs.
“Why, that’s nothing to cry about.
You should laugh about that,” she
“ I did,” Bobby answered.


Merchants Mutual Bonding Co.................. 22
Merchants National Bank—
Cedar Rapids ............................................... 2
Midland National Bank—
Minneapolis ................................................. 60
Mortgage Guaranty Insurance
Corporation ................................................. 11


National Bank of Commerce—
L in c o ln ............................................................
National Fidelity Life Insurance C o ....
Nebraska National Life Insurance Co..
Northern Trust Company B a n k ...............
Northwestern National Bank—
Minneapolis .................................................
Northwestern National Bank—
Sioux C i t y .....................................................
Northwestern National Bank—
South St. P a u l .............................................
Northwestern National Bank—
Sioux F a l l s ...................................................

Davenport, F. E., & Co...........................82, 104
DeLuxe Check Printers, Inc....................... 17
Diebold, Incorporated.................................. 57
Douglas-Guardian Warehouse
Corporation .................................................
Downey, C. E., Co............................................ 26
Drovers National Bank ...............................103
Eastman Kodak Company— Business
Systems Markets Division ................... 47
Employers Mutual Companies ............... 50
Farm Business C ou n cil................................
Figge, Reginald, A sso c ia te s...................... 104
Financial Data Service ...............................107
First National Bank— Chicago ........... . . 25
First National Bank— Kansas City . . . . 23
First National Bank— O m a h a ................... 85
First National Bank— Saint Paul ..54-55
First National Bank and Trust
Company— Dincoln .................................. 87
First National City Bank—-New York . . 39
First Nebraska Securities, Inc............ 82, 94
First Stock Yards Bank— South St.
Joseph ............................................................ 84

Gamble-Skogmo, Inc...................................... 63
Georgia Pacific Corporation ................... 24
Gross, Kirk, Co................................................. 104

Harris Trust and Savings B a n k ........... . 36


Iowa-Des Moines National Bank ............108
Iowa Legal Blank & Printing Co...............104
Irving Trust C om p an y................................ 59





Omaha National Bank ................................ 81
Omaha Printing C om pany......................... 82
Ozark Air Lines ............................................. 20


Rahel, J. Cliff, & Co....................................... 86
Scarborough & Company .........................
Schnell Livestock Auction ....................... 16
Security National Bank— Sioux City. . . .105
Security Pacific National B a n k ............... 75
Studley, Shupert & Co., Inc....................... 10

Talcott, James, Inc........................................ 65
Toy National Bank— Sioux C i t y ............. 67



United States Check Book Company . . 58
U. S. National Bank— O m a h a ................... 78


Van Horne Investments, Inc......................

Kooker, E. F., Associates ...........................104
LaSalle National B a n k .................................101
Manufacturers Hanover Trust
Company ....................................................... 43
Mercantile Trust C om p an y....................... 27




Western-Southern Life Insurance C o... 22
White-Phillips Co., Inc................................ 52



Already being used by over 400 banks



3. NO.

8 6. 25

6 19 . 7 2



□ if 3 ? 511'


L O O K A G A IN . . . C A R E FU LLY !!!
This is a New Generation of M lC R E n C O D E D , C O M P U T E R O R IG IN A T ED coupons,
providing complete accuracy and flexibility. Some of the features of the new M E C O
installment loan coupon books are:


Prequalified MICR readability
^ Interest Charges are shown on each December coupon stub for bor­
rower's income tax use.
'£ ■
Built in Truth In Lending calculations and requirements
^ Customized advertising messages throughout coupon book
^ Date of Gross Payment collects more late charges automatically
Computer generated proof list of loans processed

Hundreds of Banks throughout the country are using F.D.S. low cost services
Pre-computed Ledger Cards •

Monthly New Loan List •

Earnings Reports •

Savings Program •

Mortgage Loan Service

Financial Data Service, Inc.


Box 548


A C 312/358-7120

W rite fo r more inform ation or
v is it us a t the B.A .I. Convention in A tla n ta or a t the A .B .A . Convention in C h ica g o .
Federal Reserve Bank of St. Louis

Iowa-Des Moines National Bank has consistently led in
the development o f computer applications for bank services.
We led all Iowa banks with the introduction
o f Reserve Checking and The Check Guarantee Card.
We offer greater computer capabilities in areas
such as p roof deposit, savings and C.D.s, installment loans
and payroll accounting.
We pioneered remote computer centers in Fort Dodge
and Cedar Rapids to bring these advanced computer services
to more outlying banks than any other bank in the state,.
When it com es to computer
services, don’t you belong with the
leading bank in Iowa?



Sixth & Walnut, Des Moines, Iowa

284-8686 Ask for Computer Sales Dept.
Dale Luckow, Bernard H. Kersey, Verlon Britt
Federal Reserve Bank of St. Louis