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Oldest Financial Journal Serving The Central and W estern States No. 1182 Des Moines, Iowa Explains Reasons for High Interest Rates “ Criticism of banklending rates during the current tight-money period arises from widespread misunderstanding of the forces that cause those rates to move up or down.” This is the comment made by Tilden Cummings, president of ContinentalTllinois National Bank and Trust Company, Chicago. Public reaction against the banks has become sharpened since last June, he said, when the prime lending rate was raised to 8%%. “ While it is generally recog nized that the price of a tangible commodity will rise inexorably when that item is in short supply (or fall when the supply is gener ous), there is surprisingly little comprehension the same factors influence money rates. In the case of banks, the problem is intensi fied during a tight-money period (such as we are now experiencing) by restraints that are imposed quite properly by the Federal Re serve Board as part of the effort to contain inflation.” Mr. Cummings cites three rea sons why rising costs of bank credit are an effect and not a cause of tight money: First, “ when there is an ex ceptionally strong demand for goods and services, as at present, the prices of those goods and ser- vices tend to increase. In a classic inflationary situation, demand continues to rise and businesses seek to obtain more credit in order to increase produc tion. The increase in demand for credit tends to push up interest rates.” Tilden Cummings Second, the public, once it’s convinced that prices will contin ue to rise unchecked, develops a ‘buy-now-before-prices-rise-again’ psychology. “ The awareness of this threat led the Administration and the Federal Reserve System to propose and institute a policy of restraint designed to slow the rapid escalation of prices,” Mr. Cummings said. Third , as part of the govern ment’s action, the Federal Re serve has used its power to cut the flow of funds available to banks for lending. This action may include selling government secu rities to dry up available dollars, September 8,1969 raising bank reserve requirements, or other steps to cut the lending ability of the banks. For example, the Federal Reserve has held down the interest rate ceiling that banks may pay on time deposits, and so billions of dollars have flowed out of the banks and into higher-paying investments. “ Thus credit becomes scarce in relation to demand,” Mr. Cum mings said. As a result, interest rates move upward. “ In this situ ation, the banks become the most visible part of the (government’s) restraining process. Consequently, (banks) are likely to receive the brunt of the criticism from those most affected by tight money.” Mr. Cummings comments were distributed to all members of his bank and to key Congressmen and Illinois legislators. Messenger Service Case Gets Hearing . . . The question of whether a na tional bank’s armored car messen ger service constitutes branch banking will be argued before the U. S. Supreme Court October 20The high court has agreed to hear one hour and '40 minutes of argument in the suit by First Na tional Bank of Plant City, Fla. against State Comptroller Fred 0. Dickinson, Jr. First National is appealing a decision by the U. S. (C o n tin u e d on P a g e 4) Always the FIRST to serve you We’re always ready. Loans, Securities, T rusts, Transit & Collection Service, Operational Services, Credit Information. We’re ready with them first! https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First National Bank of Omaha GENE HAGEN TOM HORN JOHN DIEFENDORF on the job for you at security national in sioux city E I IE can D A V E N PO R T : F o llo w in g an end to a c o n s tru c tio n s trik e in th e D av en p o rt a r e a , D av en p o rt B ank and T ru s t Com pany h a s bro k en ground for its new b u ild in g , w h ich w ill a d jo in th e main ban k . Christy Armstrong DES MOINES: A to ta l of 240 b a n k e rs a tte n d in g th e an n u al in sta llm e n t c re d it co n fe re n c e of th e IBA in D es M oines la s t w eek h ea rd In su ra n c e C om m is s io n e r L o m e W orthington s a y th a t he w ill s e t a ra te for c re d it life com m is sio n s in th e a re a of 60<t to 85<f on or abou t O cto b e r 15. A co m p lete r e p o rt of th e co n fe re n c e w ill ap p e ar in th e O c to b e r m ag azin e is s u e . ‘WE HAVE WHAT YOU WANT iii a correspondent bank’ american trust and savings bank 9TH AND MAIN. DUBUQUE. IOWA MEMBER: FDIC • FRS IOWA NEWS ALGONA: Gordon C. H a ll h a s b een nam ed m anaging o ffic e r of th e S e c u rity S ta te B ank by R o b e rt I s e n s e e , who b o u g h t th e b an k r e c e n tly . Mr. I s e n s e e is p re s id e n t of U n ite d Home B a n k , M ason C ity . Mr. H a ll w as u n til re c e n tly p re s id e n t of th e C o ra lv ille B an k and T ru s t C om pany, w here Mr. I s e n s e e w as ch airm an . C L IN TO N : C lin to n N a tio n a lB a n k w ill h o ld a s e r ie s of open h o u s e s in its new ly rem o d eled an d e n la rg e d b an k on S eptem ber 15, 16 and 17. D A V E N PO R T : Wayne H. G eadelm ann h a s jo in e d th e F ir s t N a tio n a l B an k of D av en p o rt a s a v ic e p re s id e n t and tr u s t o ffic e r. H e w a s form erly a v ic e p re s id e n t and c a s h ie r a t th e P o w e s h ie k C ounty N a tio n a l B ank in G rinn e ll. IOWA CITY : G .K u rt Wayne h a s jo in e d th e Io w a S ta te B ank and T ru s t Com pany a s a lo a n o ffic e r. H e w as a s s i s ta n t v ic e p re s id e n t a t B a n k e rs T ru s t C om pany, D ès M oines. K N O X V IL L E : T h e 3M Com pany h a s an n o u n c ed p la n s for th e c o n s tru c tio n n e x t y e a r of a m u lti-m illio n d o lla r m an u factu rin g p la n t h e re . T he p la n t, to em ploy ap p ro x im ate ly 200 p e rs o n s , is e x p e c te d to b e o p e ra tio n a l by la te 1971 and w ill b e u se d by th e firm ’s in d u s tria l s p e c ia l p ro d u c ts d e p a rt m ent. ONSLOW: G eorge H. P a u ls e n , c a s h ie r a t th e O nslow S a v in g s B an k , h a s been nam ed bank p r e s id e n t. He h a s be en a m em ber of th e b a n k ’s bo ard of d ire c to rs s in c e 1927. K en n e th K en n ed y , p re s id e n t of th e bank We're here to help you get what you want I0WA-DES MOINES Bob Buenneke https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NATIONAL BANK Member Federal Deposit Insurance Corporation s in c e 1962, h a s re tire d . E . J . B u re s h , p re s id e n t of th e C itiz e n s S av in g s B ank of A n am o sa s in c e 1963, h a s p u rc h a se d th e in te r e s ts of th e H o lst fam ily in th e bank an d h as b ee n nam ed to th e b o ard of d ire c to rs . O th ers new ly nam ed to th e board are L e s B u re sh and Guy S le e p , b oth are s e n io r v ic e p re s id e n ts of th e A n a m o sa ban k . A dolph Stam pe h a s b een prom oted from a s s i s t a n t c a s h ie r to c a s h ie r . U R B A N D A LE: A p p lic a tio n h a s been file d w ith th e S tate B an k in g D ep a rt m ent for th e e s ta b lis h m e n t of a new B ren to n b an k h e re . O rg a n iz e rs of th e p ro p o se d N o rth w e st B ren to n Bank and T ru s t Com pany a re William H. B re n to n , C. R o b e rt B re n to n , J . C. B re n to n , C. S. Jo h n so n and D avid G. W right, a ll of D es M oines. Mr. W right, p r e s id e n t of th e N o rth w e st D es M oines N a tio n a l B a n k , an a f f ilia te of th e B renton g ro u p , h a s an n o u n ced th e e x is tin g U rb an d ale o ffic e of th e N o rth w e st D es M oines N a tio n a l w ill be r e p la c e d by th e new b an k . NEBRASKA NEWS O A K D A LE: T h e F ir s t N a tio n a l B ank of O ak d a le re c e n tly h eld an open h o u se in its n ew ly rem o d e led b an k q u a rte rs . M erle D. W agner, lo c a l b u s i n e s sm a n , h a s b een e le c te d to the b o ard of d ire c to rs . B arry M arsh a ls o h a s jo in e d th e b a n k ’s s ta f f . OMAHA: T h e F ir s t N a tio n a l B a n k ’s 11th a n n u a l E co n o m ic an d B e e f C a ttle Forum w ill b e h e ld T h u rs d a y , S ep tem ber 11, a t th e F o n te n e lle H o te l h ere . F o r co m p lete d e t a il s , s e e th e S ep tem b e r Northwestern Banker. P O T T E R : D. F re d E n e v o ld se n , p r e s id e n t o f th e P o tte r S ta te B a n k , w ill be hon o red d u rin g th e 1969 P o tte r D ay s c e le b ra tio n here S eptem ber 12 — 13. Mr. E n e v o ld se n h a s b een a c tiv e in th e c e le b ra tio n for n e a rly 40 y e a rs . MINNESOTA NEWS T h e M in n e so ta B a n k e rs A s s o c i a tio n ’s 1969 d is t r i c t m e e tin g s w ill be h eld S ep tem b er 8 —17 a t s e v e n lo c a tio n s th ro u g h o u t th e s t a t e . F e a tu re d s p e a k e r a t th e m e e tin g s, ac c o rd in g to S. R . W heaton, MBA p r e s id e n t, w ill b e n a tio n a lly known au th o r and c o n s u lta n t H aro ld P lu im e r. Mr. P lu im e r is au th o r of a book “ The F ro n tie r s of Our T im e s ,” w h ich w ill be h is to p ic for the d in n e r program at th e m e e tin g s. O th er program s p e a k e rs and th e ir L IN C O L N ...Experts in Mortgage Loans FIRST NATIONAL BANK TRUST COMPANY OF LINCOLN 12th & N Street • LINCOLN. NEBRASKA • Member: F.D.I.C. to p ic s w ill in c lu d e Mr. W heaton, who w ill be d is c u s s in g fe d e ra l le g is la tio n ; MBA V ice P re s id e n t M arvin R. C am p b e l l, th e MBA insurance* and fringe b e n e fit program ; MBA E x e c u tiv e V ice P re s id e n t K en n e th A. W ales, s t a t e le g is la tio n ; MBA S e c re ta ry T rum an L . J e f f e r s , e d u c a tio n , p u b lic re la tio n s and te le v is io n a d v e rtis in g ; Wayne F . B e rth iau m e, MBA p u b lic ity d ire c to r, MBA film and s ta f f tra in in g program s. T h e d is tr ic t b u s in e s s m e etin g s w ill in c lu d e e le c tio n of o ffic e rs and d ir e c to r s , e n d o rse m e n t of MBA o ffic e rs for 1970—71 and a re p o rt by th e d is t r ic t co u n c ilm an . In d is tr ic ts 7 , 8 and 9, a co u n c ilm an w ill b e e le c te d to ta k e o ffic e in J u n e , 1970. A fternoon program s w ill c o n c lu d e w ith a p re s e n ta tio n by D ean F . S c o tt, MBA le g a l c o u n s e l, on “ R e g u la tio n Z — T ru th -in -L e n d in g ,’’ follow ed by a q u e s tio n -a n sw e r p erio d . F o llo w in g a re tlys d a te s and lo c a tio n s for e a c h d is tr ic t m eeting: M IN N EA PO LIS: P ro m o tio n s and a p p o in tm en ts of five o ffic e rs and th e a s sig n m e n t of a d d itio n a l r e s p o n s i b ilitie s to a s ix th have been a n n o u n ced by th e N a tio n a l C ity B an k of M in n e ap o lis. Ben E . F e llo w s , fo r m erly co m p tro lle r-a u d ito r, h as b een prom oted to v ic e p re s id e n t an d com p tro lle r and w as nam ed s e c r e ta ry to th e board of d ire c to rs ; H a rrie t B. H alv o rso n , form erly p e rso n n e l d ire c to r, to a s s i s t a n t v ic e p re s id e n t in ch arg e of p e rso n n e l a d m in istra tio n ; M ich ael J . K e lle y , from c r e d it m anager to com m ercial le n d in g o ffic e r; T h o m as J . F re e d , form erly ac c o u n tin g m an ag er, to a s s i s t a n t co m p tro ller. D o u g las P e te rs o n , form erly v ic e p re s id e n t at th e M arq u ette N a tio n a l B an k , h a s jo in e d N a tio n a l C ity Bank a s a s s i s ta n t v ic e p re s id e n t in th e com m ercial b an k in g d ep a rtm en t. R o lf Bj e ll an d , v ic e p r e s id e n t, h a s b ee n nam ed to h e a d th e co m m ercial ban k in g d e p a rt m ent. S ep tem ber 8 —D is tric t 7, C ountry C lub, M ontevideo. SOUTH DAKOTA NEWS S ep tem ber 9 —D is tric t 2 , K ato B a ll room , M a n k ato . CANISTOTA: C h a rle s L am b ertz h a s S eptem ber 10—D is tr ic t 1, S heraton b ee n ap p o in ted a s s i s t a n t c a s h ie r a t R o c h e s te r H o tel, th e C a n is to ta o ffic e of th e U n ited R o c h e ste r. N a tio n a l B ank of V erm illio n , a ssu m in g S ep tem ber 11—D is tr ic ts 3, 4 and 5, th e d u tie s of D e n n is K a s te n , who h a s A m b assad o r M otel, re s ig n e d . S t. L o u is P a rk . S ep tem ber 15—D is tr ic t 8 , C o a te s H o te l, V irg in ia . S ep tem ber 16—D is tric t 9, E rie J r . C lub, G RO TO N: D avid S tu lk en , a s s i s t a n t c a s h ie r a t th e B ritto n o ffice of th e D e tro it L a k e s . S ep tem ber 17—D is tr ic t 6, G erm ain H o F i r s t N a tio n a l Bank of A b erd ee n , h a s jo in e d th e b a n k ’s G roton o ffic e , s u c te l, St. C loud. c e e d in g D av id E ric k s o n , who h a s jo in e d a N orth D ak o ta b an k . G L E N C O E : D en n is H erzog h a s b een prom oted from a s s i s t a n t v ic e p r e s id e n t to v ic e p re sid e n t a t th e F ir s t N a tio n a l B an k . L . H. S c h la u d e ra ff, V ERM ILLIO N : T hom as L o n g , v ic e who jo in e d th e bank on J u ly 1, h a s p r e s id e n t and m anager of th e U n ited b e e n nam ed a s s i s t a n t v ic e p re s id e n t. N a tio n a l B ank of V erm illio n , V alley HA STING S: Jo h n E x ley h as re s ig n e d a s v ic e p r e s id e n t of th e F ir s tN a tio n a l B an k of H a s tin g s . fC /R À Ç r o s s BANK PLANNING Waterloo. Iowa https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Co b a n k ’s m ain o ffic e . Jo h n S ta n a g e , a s s i s t a n t c a s h ie r a t th e b an k ’s B randon o ffic e , h a s a s su m e d Mr. L o n g ’s d u tie s in V alley S p rin g s. M arion F . K elly h a s b ee n a p p o in te d c re d it s u p e rv is o r for th e bank an d its o ffic e s . He is a former F D IC b an k ex am in er and m o st re c e n tly s e rv e d a s v ic e p re s id e n t and d ire c to r of U n ite d N a tio n a l Bank of B randon. NORTH DAKOTA NEWS BISMARCK: H . L. T h o rn d a l, J r ., for mer N orth D ak o ta s t a t e co m m issio n er o f b an k in g and fin a n c ia l in s titu tio n s , h a s a ssu m e d th e p re sid e n c y of th e sta te -o w n e d Bank of N orth D ak o ta a s of S ep tem b er 1. L E E D S : D ale S tre y le is th e new p r e s id e n t of th e F a rm e rs S ta te B ank of L e e d s . He is a ls o c a s h ie r. New v ic e p r e s id e n ts of th e b an k are Raym ond A. Lam b of M oorhead and V irg il F . H ege ho lz of F arg o . T he th re e men w ill a ls o s e rv e a s d ir e c to r s , having p u rc h a se d th e b an k in te r e s ts of the Arne A. G regor fam ily, w hich had ow ned th e b a n k s in c e 1926. MINOT: F re d V is in a , form erly a s s o c i a te d w ith a lo c a l c re d it com pany, h a s b een nam ed a loan o ffic e r a t th e F ir s t W estern B ank. He h a s 10 y e a rs of e x p e rie n c e in th e fin a n c e fie ld . S prings o ffic e , h as b een ap p o in ted v ic e p re s id e n t and m an ag er o f th e BANKS WANTED WE HAVE A FILE OF OVER 400 “BUYERS” FOR ALL SIZES OF BANKS. “CONFIDENTIAL” “PROFESSIONAL” SERVICE For our “Listing Contract” write to : RAY E. REENTS CO. 1212 Oakmont Dr. Springfield, 111. 62704 CH ILES &COMPANY M EM BER, MIDW EST STOCK EXCHANGE 412 Farm Credit Building, Omaha. Nebraska 68102 Phone 346-6677 (Area Code 402) Teletype 402 348-1040 O th e r Offices Located in LINCO LN N ebraska • LEXINGTON Nebraska • VER M ILLIO N South Dakota BANK PREMIUMS g ftô fa fa o e h à s BANK N O R T H W E S T E R N B A N K E R w ill send you F R E E w ith each order of 500 Si I ver line “ Perform er” R etractab le B a ll Pens: A P o laro id C o lo rp a c k IV Cam era w ith B u ilt-In Tim er (Model C P # 4). R e ta il V a lu e $ 3 9 .95 . Features: E le g a n tly tooled 24 Banded caps in M e ta llic Gold and Chrome colors H a rtle y B lue Ink Medium Po int Brass C artridge B utyrate B arrell w ith midget m etal nose tip . B arrell co l ors: Red, B lack , Royal B lue and Green. 4 lin e s of copy in S ilver ink at no extra charge M SI6N CONSULTANTS BOX 87 PM. 1*712*2821488 S P C M C C R ,IO W A 51901 C e n te r in D en v er, and R o b e rt L . P e n nock h av e b ee n nam ed d ire c to rs of th e A rap ah o e V alley B ank h ere . G en. Corw in is c u rre n tly v ic e p r e s id e n t and tr e a s u r e r of th e C. A. Norgren Com pany, L ittle to n , and Mr. P e n n o c k is v ic e p re s id e n t and g e n e ra l m anag er of H o n e y w e ll’s p h o to g rap h ic d iv is io n . R IF L E : T h e R ifle B ank A g en cy , I n c ., h a s p u rc h a se d 448 of the o u tsta n d in g 500 s h a r e s of s to c k in th e F ir s t N a tio n a l B ank here from M ads A nderson and a s s o c ia te s . WYOMING NEWS G IL L E T T E : Ground h a s b een broken h ere for th e new bank b u ild in g of th e 500 Pens 270 each C e llo wrapped 20 add itio nal F in e P o in t R e fills 20 each. NORTHW ESTERN BANKER 306 - 15th Street Des M oines, Iowa 50309 D E N V E R : O w n ersh ip of th e U nion N a tio n a l B a n k h a s re tu rn e d to D en v er a fte r 14 m o n th s, w ith th e pu r c h a s e of th e U nion N a tio n a l B ank C o rp o ratio n by S tu arco O il C om pany, I n c ., from V ic k e rs T ru s t of W ichita. S tu arco is a p riv a te ly ow ned c ru d e o il p roducing and d rillin g com pany. No c h a n g e s in b an k p e rso n n e l h av e b e e n an n o u n c ed . L IT T L E T O N : B rig. G en. T hom as P . C orw in, re tire d com m ander of th e A ir F o rc e A ccounting and F in a n c e CENTRAL NATIONAL SHERIDAN: T he old F ir s t N a tio n a l B ank b u ild in g h ere w as raz ed re c e n tly to make way for a modern new onesto ry s tru c tu re to h o u se th e bank. Hearing. . . (C o n tin u ed from P a g e 1) F ifth C irc u it C ourt of A p p e a ls la s t S eptem ber th a t its m e sse n g e r s e r v ic e c o n s titu te d b ran c h b an k in g in v io la tio n of F lo rid a s ta te law . F o llo w in g th e d e c is io n , F i r s t N a tio n a l and the C om ptroller of th e C u rren cy b rought a p p e a ls to th e high co u rt. In a d d itio n , num erous ‘friend of th e c o u rt’ b rie fs w ere file d in s u p p o rt of b oth p o s itio n s . H ow ever, o ral arg u m en ts before th e high c o u rt w ill be lim ite d to a tto rn e y s for F ir s t N a tio n a l, D ick in so n and th e U. S. S o lic ito r G e n e ra l, who w ill r e p re s e n t th e C o m p tro ller. W AN T ADS Rates 25 cents per word per insertion. Minimum: 12 words. NORTHWESTERN BANKER ------ 306 15th St.. Des Moines, Iowa F O R SA L E B urroughs A uto R e a d e r, S ty le A4001, for s e n s itr o n ic s . P ric e $500. N a tio n a l B a n k o f N orth C h ic a g o , N orth C h ica g o , I llin o is 60064. COLORADO NEWS F ir s t N a tio n a l B ank. T h e $300,000 s tru c tu re is s c h e d u le d to be com p le te d in Ja n u a ry , 1970- PO SITIO N A V A ILA BLE P ro g r e s s iv e Wyoming b an k s e e k s young c o lle g e -tra in e d man w ith m inimun of tw o y e a rs e x p e rie n c e . N ote te lle r e x p e rie n c e v a lu a b le . Send resu m e to F ile WCB, in c a re of th e N O RTH W ESTERN BA N K ER, 306 15th S tre e t, D es M o in es, Iow a 50309WANTED E x p e rie n c e d o p e ra tio n s man for $16 m illio n b ank lo c a te d in W estern I llin o is . Jo b w ill le ad to c a s h ie r p o s itio n in tw o to th re e y e a r s . Send resu m e to F ile IB B , in c a re of th e BANK AND TRUST Member Federal Deposit Insurance Corporation COMPANY N O RTH W ESTERN BA N K ER , 306 15th S tre e t, D es M oines, Io w a 50309. $1 0 .0 0 IS The p ric e of a p e rs o n a l, a ir m ail su b s c rip tio n to the C ro u se Farm B u s in e s s R e p o rts. T h ey h elp k ee p loan o ffic e rs and ag re p r e s e n ta tiv e s ah e ad of th e ch an g in g farm p ic tu re . S am ples a v a ila b le . Farm B u s in e s s C o u n c il, I n c ., P .O . Box F , U rbana, Illin o is 6 1801 PO SITIO N A V A ILA BLE N eed V ice P r e s id e n t for D enver Sub urban b an k . B ack g ro u n d in com m er c ia l len d in g and in s ta llm e n t o p era tio n s n e c e s s a r y . E x c e lle n t liv in g and w orking c o n d itio n s. Send resu m e and p h o to g rap h to A. J . C uen y , p re s id e n t, G olden S tate Bank', G olden, C o lo rad o 80401. IN C REA SE 1969 P R O F IT S Cy K irk and Max Roy, v ic e p r e s id e n ts of L a S a lle N a tio n a l B an k , C h ica g o , are p rep ared to a s s i s t y o u and your bank in p lan n in g in c re a s e d p ro fits for 1969. W hether it is an a n a ly s is .of your bond p o rtfo lio or a c o s t stu d y of your g e n e ra l ban k in g s e r v ic e s , L a S a lle N atip n al B ank has th e fa c ilitie s to s e rv e your ev ery n ee d . C a ll Cy or Max today a t (A re a C ode 312) 7 8 2 —5200 for im m ediate a c tio n . No. 1182 Northwestern Banker is published five tim es monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309- Subscriptions 50tf per copy, $6 per year. Second c la s s postage paid at Des Moines, Iowa. Address all mail subscriptions, changes of address (Form 3579)? m anuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ^
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