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ID-CONTINENT BANKER
ISSN 002Ó-29ÓX)
The Financial Magazine of the Mississippi Valley & Southwest
MAY 15, 1980
Second o f
Tw o Issues
A Gavin W eir, President
Illinois Bankers Association
Page 43
C George R. Taylor, President
Tennessee Bankers Association Page 55
B C. Wayne Worthington, President
Indiana Bankers Association
Page 52
D Paul W . McMullan, President
Mississippi Bankers Association Page 59
E Kenneth O. Wilbanks, President
New Mexico Bankers Association
Page 62
Bank Ads Focus on Credit Restraint— Page 36
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Federal Reserve Bank of St. Louis
Energy
To produce it we
must reach out...dig down...
and do it NOW.
Everyone knows that easy-energy days are gone.
But the energy-crunch is really an energy challenge ...
an opportunity for Am erica to become truly
productive again.
The energy is here. The real questions are: Where
are we? What are we doing to help produce it? What
are we doing to consume less?
This is where Liberty is: In 1980, 60% of our
comm ercial and industrial loans will be energy related.
A major share of our professional and business
resources are concentrated in this vital sector
of the econom y of m id-Am erica and the nation.
Liberty is “ reaching out" in an active program
to conserve and finance the distribution of
energy and “ digging dow n” to enlarge and
finance the production of energy. You will
also find Liberty doing all we can on the side
of fair regulation and a tax incentive policy
to stim ulate energy investment.
There's another thing folks at Liberty are
trying to do something about: Energy isn’t just oil
or gas or coal or therm al or solar p o w e r... energy
is jobs and p aych ecks... energy is a com fortable
home ... energy is transportation to w ork and
p la y ... and the greatest potential energy of all is our
personal financial independence ... and avoiding
m ountainous debt.
Energy independence, w isely financed and sensibly
used, is also A m erica’s latest challenge in a chain of
challenges that began with libe rty itself in 1776.
How do we do it? Our answer is to continue to use the
energy of L ib e rty’s billion (plus) dollars of
resources to enlarge productivity and as a force
for the growth of jobs, paychecks and homes
for Oklahomans.
That's how w e ’re “ reaching o u t” and digging
d ow n ” and
DOING MORE FOR YOU
Wl™E n erg y
J. W. McLean
Chairman
W e’ve got the answers
LIBERTY
THE BANK OF M ID -A M E R IC A
T he L ib e rty N a tio n a l B a n k and Trust C o m p a n y / P. O. B o x 2 5 8 4 8 / O kla h o m a City, O kla h o m a 7 3 1 2 5 / (405) 2 3 1 -6 0 0 0 / M e m b e r FDIC
MID-CONTINENT BANKER is published monthly except semimonthly in May by Commerce Publishing Co., 4 0 8 Olive, St. Louis, Mo. 6 3 1 0 2 , May 15, Vol. 76, No. 6.
Controlled circulation postage paid at Fulton, Mo.
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Federal Reserve Bank of St. Louis
How can this symbol
help your bank?
Ask the bankers who’ve put up
4 0 ,0 0 0 already.
This new sym bol was in tro d u c e d just last
summer. Since that time, 40,000 decals have
been reque sted by bankers in every state.
Their customers know these banks are some
thing special. Do yours?
Displaying this symbol will distinguish your
bank from S&^L’s, savings banks, credit unions
and any other institutions that offer bank-like
services. These com petitors can’t say they are
A FULL SERVICE BANK because this brand
name is the re g iste re d tra d e m a rk o f the
American Bankers Association
member banks.
By using this symbol on your
doors, drive-in windows and
in your advertising, you’ll immediately benefit
fro m the ABA’s $5 m illio n “ W e’ve G ot The
Answers” national advertising campaign.
Ask the bankers in your state who now display
the A FULL SERVICE BANK identification. They
see it for what it really is, a valuable com peti
tive ad vantage th a t reinforces cu sto m e r
desires for convenience, professional service
and security.
For free decals, call or write Gwen Strickland,
M e d ia C o o r d i n a t o r , A m e r i c a n Ban ke rs
Association, 1120 Connecticut
Ave., N.W., Washington, D.C.
20036, (202)467-4187.
A M E R IC A S FULL SERVICE BANKERS
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Federal Reserve Bank of St. Louis
1980 American Bankers Association
3
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HRROI44
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Rally 'round the men from
m Commerce Bank
May 4 - 6 — Nebraska Bankers Convention,
Omaha— P. V. M ille r, Jr., Fred N. C o u lso n . Jr.,
H. C. Baum an, W illia m J. Sprenger
April 2 7 -2 9 — Texas Bankers Convention,
Houston— Fred N. C o u lso n , Jr., H. C. Bauman,
David L. Scott
Visit the midwest's most
experienced correspondents
at your state convention.
May 10-13— Arkansas Bankers Convention,
Hot Springs— Fred N. C o u lso n , Jr., H. C. Bauman,
W illia m J. Sprenger
May 1 9 -2 1 — Oklahoma Bankers Convention,
Oklahoma City— P. V. M ille r, Jr., Fred N. C o ulson,
Jr., H. C. Baum an, David L. Scott
M;
May 14-16— Kansas Bankers Convention,
Overland Park— P. V. M ille r, Jr., D avid A. Rismiller,
John R. O w e n , Fred N. C o u lso n , Jr.,
H. C. Bauman, Fram pton T. Rowland, Jr.,
M ichael Brixey, Jonn C. M essina
*srs
May 2 2 -2 4 — Missouri Bankers Convention,
St. Louis— James M . Kem per, Jr., P. V. M ille r; Jr.,
David A. Rism iller, John R. O w e n ,
Fred N. C o u lso n , Jr., H. C. Bauman,
John C. M essina, Stephen E. Erdel
June 5 - 7 — Colorado Bankers Convention,
Colorado Springs— Fred N. C o u lso n , Jr.,
D avid L. Scott
June 5 - 7 — New Mexico Bankers Convention,
Albuquerque— Fred N. C o ulson, Jr.,
David L. Scott
MID-CONTINENT BANKER for Mav 1 5 , 1 9 8 0
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Federal Reserve Bank of St. Louis
Q
C o m m e r c e Ba n k
of Kansas City HA
M em ber FDIC
10th & Walnut, Kansas City, Mo. 64199
Phone AC 816-234-2000
5
Convention Calendar
The Financial Magazine o f the Mississippi Valley & Southwest
Volume 76, No. 6
May 15, 1980
FEATURES
16 THE FED'S N EW PROGRAM
How does it rate among CEOs of banks, HCs?
26 WILL CREDIT TIGHTENING WORK?
Opinions vary among bankers
36 BANK ADS FOCUS O N CREDIT RESTRAINT
Pledge support, seek federal budget cut
41 RURAL BANKERS SPEAK UP
Tell what they think of new Fed program
DEPARTMENTS
8 PERSONNEL
12 SECURITY
14 COMMUNITY INVOLVEMENT
CONVENTIONS
43 ILLINOIS
52 IN D IAN A
55 TENNESSEE
59 MISSISSIPPI
62 NEW MEXICO
STATE NEWS
64 KANSAS
64 MISSISSIPPI
66 OKLAHOMA
Milwaukee, Wis., 161 W. W isconsin Ave.,
53203, Tel. 414/276-3432.
EDITORS
Ralph B. Cox
Publisher
Lawrence W. Colbert
Assistant to the Publisher
Rosemary McKelvey
Editor
Jim Fabian
Associate Editor
Advertising Offices
St. Louis, Mo., 408 Olive, 63102, Tel. 314/
421-5445; Ralph B. Cox, Publisher; Marge Bottiaux, Advertising Production Mgr.
6
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Federal Reserve Bank of St. Louis
64 MISSOURI
66 TEXAS
MID-CONTINENT BANKER (publication No.
3 4 6 -3 6 0 ) is published m onthly except
semimonthly in May by Commerce Publishing
Co., 408 Olive St., St. Louis, Mo. 63102.
Printed by The Ovid Bell Press, Inc., Fulton, Mo.
Controlled circulation postage paid at Fulton,
Mo.
Subscription rates: Three years $24; two years
$18; one year $11. Single copies, $2 each.
Foreign subscriptions, 50% additional.
Commerce Publications: American Agent & Bro
ker, Club Management, Decor, Life Insurance
Selling, Mid-Continent Banker, Mid-Western
3anker and The Bank Board Letter.
Officers: Donald H. Clark, chairman; Wesley H.
Clark, president; James T. Poor, executive vice
president and secretary; Ralph B. Cox, first vice
president and treasurer; Bernard A. Beggan,
W illiam M. Humberg, Don J. Robertson and Law
rence W. Colbert, vice presidents; David Baetz,
assistant vice president.
May 12-14: Bank Administration Institute Bank Tax
Conference, Nashville, Hyatt Regency.
May 14-16: Alabama Bankers Association Annual Con
vention, Mobile, Municipal Auditorium.
May 14-16: Kansas Bankers Association Annual Con
vention, Overland Park, Glenwood Manor.
May 15-18: Independent Bankers Association of
America Seminar/Workshop on Bank Ownership,
Clearwater Beach, Fla., Hilton Inn.
May 17-21: Mississippi Bankers Association Annual
Convention, Biloxi, Biloxi Hilton Hotel.
May 18-21: ABA National Operations/Automation
Conference, New York City, Hilton and Americana
hotels.
May 18-21: Tennessee Bankers Association Annual
Convention, Gatlinburg, Sheraton Hotel.
May 19-21: Oklahoma Bankers Association Annual
Convention, Oklahoma City, Sheraton Century
Center Hotel.
May 22-24: Missouri Bankers Association Annual Con
vention, St. Louis, Stouffer’s Riverfront Inn.
May 22-25: Assembly for Bank Directors, Bermuda,
Southampton Princess.
May 24-29: National AIB Leaders Conference, New
Orleans, Hyatt Regency New Orleans.
May 25-30: Bank Marketing Association Essentials of
Bank Marketing Course, Boulder, Colo., University
of Colorado.
May 25-June 6: Bank Marketing Association School of
Bank Marketing, Boulder, Colo., University of Col
orado.
May 25-30: Bank Marketing Association School ofTrust
Sales and Marketing, Boulder, Colo., University of
Colorado.
May 31-June 6: ABA National and Graduate Schools of
Bank Investments, Urbana/Champaign, 111., Univer
sity of Illinois.
June 5-7: Illinois Bankers Association Annual Conven
tion, St. Louis, Stouffer’s Riverfront Inn.
June 5-7: New Mexico Bankers Association Annual
Convention, Albuquerque, Hilton Inn.
June 5-7: Association of Bank Holding Companies
Annual Convention, Williamsburg, Va., Williams
burg Inn.
June 8-10: ABA Financial Management and Planning
Workshop, Chicago, Hyatt Regency O’Hare.
June 8-20: Stonier Graduate School of Banking, New
Brunswick, N. J., Rutgers University.
June 10-12: Indiana Bankers Association Convention,
French Lick, French Lick Springs Hotel.
June 11-13: Robert Morris Associates Chapter Officers
Planning Workshop, New Orleans, Royal Orleans.
June 15-18: ABA National Corporate Trust Workshop,
Chicago, Palmer House.
June 15-18: ABA Management Skills Workshop/Community Bankers Division, Kansas City, Crown Cen
ter.
June 24-26: ABA Affirmative-Action Workshop/Bank
Personnel D ivision, Chicago, Hyatt Regencv
O’Hare.
July 9-11: ABA Labor Relations Workshop/Bank Per
sonnel Division, Denver, Stouffer’s Denver Inn.
July 13-16: ABA Risk & Insurance Management in
Banking Seminar, Lincolnshire, 111., Lincolnshire
Marriott.
July 13-19: ABA National Compliance School, Notre
Dame, Ind., Notre Dame Universitv.
July 13-25: ABA School for International Banking,
Boulder, Colo., University of Colorado.
July 19: ABA District II Leaders Conference, Peoria,
111., Holiday Inn.
July 20-25: ABA National School of Bank Card Manage
ment, Evanston, 111., Northwestern University.
July 27-Aug. 2: ABA Essentials of Banking School.
Notre Dame, Ind., Notre Dame University.
July 27-Aug. 2: ABA Business of Banking School, Ithica, N. Y., Cornell University.
July 27-Aug. 8: Consumer Bankers Association Gradu
ate School of Consumer Banking, Charlottesville
Va., University of Virginia.
Aug. 3-8: ABA National School of Real Estate Finance,
Columbus, O., Ohio State University.
Aug. 9: ABA District Five Leaders Conference, Jackson, Miss., Holiday Inn.
Aug. 10-15: Central States Conference Graduate
School of Banking Postgraduate Course, Madison,
Wis., University of Wisconsin.
Aug. 10-23: Central States Conference Graduate
School of Banking, Madison, Wis., University of
Wisconsin.
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Does your correspondent bank
make investments that bring
the desired return?
We do—
overnight or over a decade.
It’s a big job, staying attuned to all
domestic and international money
markets.
It’s a job for experts who devote all
their time to the task. Experts who
have access to the latest com
munications and computer equip
ment. The experts in Mercantile’s
Bond/lnvestment Department.
No matter how long you want your in
vestment capital tied up, we can pro
vide a plan that suits your needs.
Overnight Investments. Federal
funds. Repurchase agreements.
Reverse-repurchase agreements.
Short-term Investments. US.
Treasury bills. Agency obligations.
Tax-free municipal notes. Commercial
paper. Large certificates of deposit.
Banker’s acceptances. And almost
any other type of money market
instrument.
Longer-term Investments. U S.
Treasury Bonds. Agency obligations.
Tax-free municipals and other long
term debt instruments.
Safekeeping Services. The last thing
you probably need is the inconven
ience and risk of shipping certificates
back and forth. Save that hassle by
keeping your certificates in our vault:
we’ll provide computer reports for
your records.
Just Plain Good Advice. No, we
can’t make any final decisions for
you. But we can help you make deci-
Central Group, Banking Dept.
Mercantile Trust Company N.A.
St. Louis, MO. (314) 425-2404
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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Federal Reserve Bank of St. Louis
sions wisely. By keeping you up-to-the
minute on constantly-changing
money and securities markets.
That’s why we keep a service office
on Wall Street. And why we’ve
invested in computers. And keep
access to the Federal Reserve Book
Entry System.
All these keep you informed and let us
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mediately. They’re your best guaran
tee of desired return.
What’s more, Investment is just one
of our correspondent services. So call
a Mercantile Banker today.
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MERCnnTIIE
Bnnc
7
By TOM HAGAN
Tom Hagan & Associates
North Kansas City, Mo.
P ro m o tio n From W ith in : G o o d M o tiv a tin g T o o l
RODUCTIVITY awards can come who has a tendency to handle all un
in many packages. Used discreet usual items personally is not only a
ly, a promotion from within can serve
candidate for a heart attack, but most
as a valuable tool in motivating em importantly, he or she is failing to pro
ployees. Unless it’s handled properly, vide the training necessary for sub
a promotion for the wrong person can, ordinates to advance. The most ob
conversely, have a devastating effect. vious signal is the amount of overtime a
No one knows better who deserves a supervisor must spend to keep the de
promotion than your employees. If partment running. Another signal is
some favoritism is indicated in promo when the work load becomes “jum
tions, other employees can he turned bled during the supervisor’s vacation.
into unproductive beasts breathing fire
Management might learn a lot from
and brim stone. A few can be real a bookkeeper or teller in a $30-million
monsters, especially in the operations bank by calling him or her into his
area.
office for such questions as “How do
you like your jo b ?” “Just exactly what
do you do? ‘‘Do you feel you are re
Prom oting from w ithin ceiving the best training for your jo b ?”
Have you a goal in sight for your next
places a responsibility on top
advancement?”
m anagem ent to see that a
Interpretation of the answers, of
reasonable number of promot- course, must be tempered with good
able people are on the staff. judgm ent. It may be necessary to
question others in the same general
departmental area, but usually the
There are several types of promo subordinates can, and will, provide the
tions. The outright assignment of offic really valuable information about their
er status should be accompanied by a supervisors and general work load in a
definite assignment in an area of re certain department. It’s also a great
sponsibility; otherwise, the title is hol tool to help decide who is to be the
low and carries no weight with co next supervisor. In addition, most em
workers. Officer status based mostly ployees will consider it an honor to
on service tenure or family relation have their opinions sought.
ship usually has a negative effect on the
At some point, consider awarding
work force. Workers feel mistreated the title of “assistant bookkeeping su
and begin to read the help wanted ads. pervisor” or “assistant head teller,”
A promotion to ‘head teller’ or etc. A consultation with the supervisor
“ bookkeeping su p e rv iso r,” e tc ., (and full agreement) is essential. Sub
should include responsibility for work ordinates’ thoughts should not be di
schedules, interview ing applicants vulged, but management will have a
and, most importantly, a continued good idea of the areas of agreement as
training program for employees in well as any flash signals of how well an
their own departments. We are talking employee gets along with co-workers
of banks of all sizes; therefore, some and supervisors.
modification would be in order for
The psychology of promoting from
large and small banks. Generally, we within has been tested and proved for
are adapting our suggestions to banks many years. It is a practice that is ex
under $100 million.
tremely important to any bank, but it
A supervisor should delegate re also places a responsibility on top man
sponsibility to others. The supervisor agement to see that a reasonable num
P
8
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Federal Reserve Bank of St. Louis
ber of promotable people are kept on
the staff. Far too many banks have
found themselves with “average” or
“satisfactory” em ployees in ju nior
positions, but learn too late that the
age and capability range of senior offic
ers requires some real planning to en
sure smooth transitions when illnes
ses, resignations or other sudden staff
changes occur.
A trend has surfaced in the ’70s that
can be expected to gain momentum
quickly — women bank officers. Can
you think of any bank that does not
have at least one woman whom man-
The supervisor who has a
tendency to handle all unusual
items personally is failing to
provide the training necessary
for subordinates to advance.
agem ent relies on freq u en tly for
gen eral adm in istrative advice?
W om en understand, and usually
accurately evaluate, employees as well
as customers.
Women have come a long way, not
only through legislation, but principal
ly by demonstrating they can handle
management positions. Already, there
are several female bank presidents in
the Midwest, and they are doing a
good job . Yes, some have limited
mobility in relocating, but there are
some unencumbered, well-qualified
women around. There are some whose
husbands’ occupational skills are trans
ferred easily to another area, who are
willing to relocate within reasonable
distances of their present homes.
When considering promotions, a bank
could take advantage of the availability
and training already invested in some
of its female help.
In summary, the “bottom line” in
the ’80s can be satisfactory, but it will
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Nobody knows New Orleans
life the W hitney
When you have an important customer who
asks about banking in New Orleans and
Louisiana, tell him about the Whitney.
The Whitney, now in its 97th year, can
offer your customer the same high quality,
efficiency and excellence in banking that
your bank has so capably provided.
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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Federal Reserve Bank of St. Louis
A great bank for a great city
9
require some additional expertise on
the part of management to seek out,
hire and train promotable employees.
The Bureau of Labor Statistics reports
a 37% turnover rate for banking, with
87% of all terminations voluntary. It
seems, therefore, that at least one
third of a bank’s employees should be
of promotable quality. The problem is
magnified when one thought to be
promotable fails to perform according
to estim ates or moves on to what
appears to be greener pastures.
In conclusion, personnel is a con
stant administrative concern, but it’s
not peculiar to banking. A similar
problem exists in every business em
ploying two or more persons. Person
nel problems can be eased by promot
ing from within, conducting intensive
training, evaluating staff people and
accepting female available resources.
There’s no cure-all, but there is a chal
lenge — and meeting that challenge
certainly is possible. • •
Women in Bank Management
Quadruple in Number
During This Decade
W A SH IN G TO N , D. C. — The
number of women in official and man
agerial positions in full-service banks
nearly quadrupled in this decade, ac
cording to statistics filed with the fed
eral government, reports the ABA.
The figures, submitted by the 50
largest banks in the country, also show
that during the same time period the
percentage of all official and manage
rial positions held by women more
than doubled.
In 1970, 7,650 women held 14.9% of
the category designated “officials and
m anagers.” By 1975 some 19,211
women had earned a 26% share of that
category, and the most recent 1978
figures show that 28,987 women, or
32.9% of the total are now included in
the ranks.
Officials and managers is the top job
category established by the Equal
Employment Opportunity Commis
sion (EEOC) and the U. S. Depart
m ent of Labor for equal-em ployment-opportunity reporting. It covers
“administrative personnel who set
broad policies, exercise overall re
sponsibility for execution of those
policies and direct individual depart
ments or special phases of a firm’s op-
PRIORITY.
You. You re the number one
priority at First National of Mobile.
What you say goes. When you do
your correspondent banking with us,
you call the shots. You're in command.
You set the priorities.
Aid since were one of
the leading corre
spondent banks
in this area,
chances are, 4
well have
all the ser
vices you’ll
need. Rapid
cash letter col
lection, flexible 1
loan participation
and overlines.
Investment know how. Experience as
the oldest international bankers in
the southeast. All the standard services
but with an approach to service that’s
anything but standard.
Call Jack Andrade, in Ala
bama; 1- 800- 672- 6709,
other states, 1- 800633- 6710. Or write
Post Office Drawer
1467, Mobile, AL
36621. We’d like to
tell you more.
At First
I f National we Ye
*
good at putting
first things first.
Because we always
start with you.
CÜ First National Bank of Mobile
erations.” The classification includes
officials, execu tives, m iddle-m an
agement personnel, department man
agers and salaried supervisors who are
members of management.
In announcing the new figures,
A. O. Strom quist, chairman, ABA
bank personnel division, and vice
president, U. S. National, Portland,
Ore., pointed out that while the per
centage of females holding official and
managerial job titles was increasing,
total number of positions within that
category also was increasing.
“In 1970,” said Mr. Stromquist,
“there were 51,358 bankers within the
general category of officials and man
agers. By 1975 the number of persons
in that category had jumped to 73,876
and by 1978 it had reached 88,000.
“This is important to note in assess
ing gains women have made as a per
centage of the total official/managerial
slots in existence. Merely to hold on to
their 1970 14.9 percentage share, total
number of women in those positions
would have had to increase. The fact
that they more than doubled their
share — to 32.9% — while the cate
gory itself increased by two-thirds is
certainly significant.’’
Statistics compiled by the ABA also
show that the number of “professional”
positions in banks held by women
more than tripled from 1970-1978. The
EEO C and the Department of Labor
define this category as consisting of
“occupations requiring either college
graduation or experience of such kind
and amount as to provide a comparable
background.” It includes accountants
and auditors, law yers, librarians,
mathematicians and personnel and
labor relations workers.
In 1970, out of a banking industry
total of 13,073 professional positions,
women held 3,246, or 24.8%. By 1978
total number of professional positions
had jumped to 27,865 and women
were holding 11,481 or 41.2%.
Minority personnel also have made
significant gains in upper levels of
banking. Statistics show there cur
ren tly are some 10,8 9 8 official/
managerial positions held by minority
employees, while in 1970 there were
only 2,577. They now hold 4,395 pro
fessional positions as opposed to 883 at
the beginning of the decade.
For minority women, the jump is
even more impressive — from 717 “of
ficials and managers’’ in 1970 to 5,135
in 1978, and from 251 professionals in
1970 to 2,040 today. These figures in
clude Blacks, Asians, American In
dians and Hispanics.
A First Bancgroup-Alabama, Inc. Affiliate. Member FDIC.
10
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Federal Reserve Bank of St. Louis
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Am erican Express
is there when
your customers
need us.
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Federal Reserve Bank of St. Louis
Because...
By OSCAR W. JONES
Risk Control Services, Inc.
Chicago
Are You Prepared to Be Robbed?
RM ED BANK robbery is the No.
1 crime category for most in
mates entering the federal prison sys
tem. About 50% of all inmates arriving
in our federal prison system today are
sentenced for either armed bank rob
bery or — often related — major nar
cotics offenses.
More alarming is that armed rob
beries have increased within the last
several weeks. There has been an up
surge of these crimes against banks
across the nation. Many of the robbers
have not been apprehended.
lot into a nearby woods, where he had a
car waiting.
He took bait money — the cash from
the teller drawer — but, neither the
alarms nor cameras were activated due
to malfunction. The bank was aware of
the malfunctioning security equip
ment the day before, but repairs had
not been completed by the time of the
robbery.
Tellers were able to provide au
thorities with a reasonably accurate
description of the robber and police
immediately began to search for him.
Although no weapon was displayed,
bank personnel attribute the robber’s
"There is an extremely valid success to the element of surprise and
reason for a bank not to want the speed with which the incident oc
curred.
to attract bank robbers. It is in
Do you thoroughly and frequently
protection of the lives of per inspect your security equipment, and
upon notice of malfunction, do you
sonnel and customers."
promptly repair it, being especially
cautious in the interim?
Many banks are exposing too much
Two armed men disguised with ski
cash in areas vulnerable to attack by masks entered another bank through
bank robbers. For example, tellers’ the lobby door at 10:45 a.m. They
cages, shipping and receiving areas, vaulted over a gate at the rear of the
currency-packaging areas and in re teller line and demanded money from
serve cash held in the vault.
each of the four tellers on duty. They
At approximately 1:30 p.m. one day, grabbed several bags containing de
a man entered a bank lobby and ap posits from local businesses which had
proached one of two tellers on duty. not been processed in addition to the
He rushed behind the teller cage and teller drawers’ contents. One of the
forcibly took more than $6,000 from bags contained the payroll prepared
the teller drawer. While leaving, he for a grocery chain. In addition to cash,
bumped into the second teller, who they also took numerous checks and
was coming out of the vault with a cash change orders. Total loss to the bank
bag. The bag contained more than was $145,000.
$33,000 of the prior day’s deposits
In both banks, too much cash was
which the teller was going to process. exposed. Large amounts of cash are
He grabbed the bag and left through tempting to would-be bank robbers.
the front door, ran across the parking Consequently, we may learn a lesson
from these recent robberies — to hold
This article was taken from the January, currency exposure to a minimum.
Does your vault’s internal chest or
1980, issue of Loss Protection /Prevention
Bulletin, which is published by Scar safe have a 15-minute delay mech
anism? Remember, one thing that the
borough & Co., Chicago.
A
12
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
bank robber doesn’t have is time to
spare! He wants to hold up the bank as
fast as possible and make a quick geta
way. If the vault cash is under a 15minute delay lock mechanism, more
than likely the robber will be satisfied
with the tellers’ cash he has scooped
up, because he can’t afford the 15minute delay.
One practical alternative to the 15minute lock mechanism is to distribute
the bulk of your vault cash into several
u nrented safe deposit boxes kept
under control.
"In both banks, too much
cash was exposed. Large
amounts of cash are tempting
to w ould-be bank robbers.
. . . Hold currency exposure
to a minimum."
In another bank robbery, a lone
messenger was robbed of $168,000 as
he approached the back door of the
bank. This messenger brought large
amounts of currency to the back door at
about the same time each day and
traveled the same route each day. This
messenger had established a pattern to
his delivery route and time and all the
robbers had to do was intercept him
during his routine.
Obviously, there was a flagrant
violation of sound control principles in
this bank. In the first place, a mes
senger should not be alone when
transporting $168,000 to the bank!
Secondly, he should have varied his
route and time each day to avoid es
tablishing a predictable pattern.
Do you have messengers transport
ing large amounts of cash? Do they
alter their delivery routes and times of
(C ontinued on page 34)
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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Federal Reserve Bank of St. Louis
Community Involvement
College Endowment Fund
Established by BofA
For Outstanding Seniors
A $2-million endowment fund to
benefit outstanding seniors at Califor
nia state and independent universities
has been established by BankAmerica
Foundation in recognition of the 75th
anniversary of the Bank of America,
San Francisco.
Earnings from the permanent en-
dowment will be distributed annually
as merit scholarships to more than 100
selected seniors. The program will
begin next fall.
“The program’s purpose is two
fold,” said A. W. Clausen, the bank’s
president. “The bank wishes to recog
nize and to encourage excellence in
education. Also, it wants to express its
gratitude to California colleges and
universities for providing the state
with . . . knowledgeable citizens and
the bank with . . . fine employees.”
Mr. Clausen said the schools will
select recipients and distribute and
adm inister scholarship funds. Al
though there is no restriction in fields
of study, students must be California
residents and have a 3.25 or better ac
cumulative grade-point average to be
considered. Scholarship funds will be a
flat amount rather than the actual cost
of tuition and will range from $500 to
$4,500 per student.
School Message Board
Is Donated by Bank
For School's Birthday
A lighted message board was do
nated by Colonial National, San An
tonio, Tex., to Tom C. Clark High
School. Robert T. Huthnance, presi
dent of Colonial National, made the
presentation. “We are pleased to cele
brate Clark’s first birthday by giving
the school this message board,” Mr.
Huthnance said.
“Our bank plans to do business in
this area for a long time to come. We re
especially proud of the job the Clark
High School principal and his staff are
doing to prepare their students for the
challenges and opportunities facing
tomorrow’s citizens and community
leaders.
“We look forward to working with
these young people to develop the full
potential for our community, and this
gift is an affirmation of our commit
ment to this goal.”
Robert T. Huthnance (r.), pres., Colonial
Nat'l, San Antonio, Tex., and Clark High
School Principal Jerry Daniel hold number
that completes message on new sign do
nated to school by bank.
14
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Federal Reserve Bank of St. Louis
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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H ow Do Anti-Inflation Programsof Fed,
President Score Among Bankers?
CEOs of Banks, HCs Voice Their Opinions
O n Actions Announced M arch 14
Growth Slowdown
For Individual Banks
By Robert F. Jackson Jr.
T SE E M S clear that the monetary
and credit restraints announced
March 14 by the Fed eral Reserve
Board will be bitter medicine, but
something must be done to halt run
away inflation.
It’s still too early to measure the im
pact of these restraints on any quantita
tive basis, but we do expect a slow
down in growth of individual banks and
a probable reduction in earnings. As
usually happens when artificial con
trols are imposed, the better-managed
and more liquid banks will suffer the
least, and the less liquid and aggres
sively growth-oriented banks will suf
fer the most.
I think it is obvious that both retail
and commercial customers will find it
more difficult to borrow, partly be
cause rates will be high, but more im
portantly loanable funds will be in
short supply. Banks will be forced to
allocate cred it. To one d egree or
another, communities will suffer as
economic activity declines.
I
ROBERT F. JACKSON JR.
President
First National Charter Corp.
Kansas City
16
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Federal Reserve Bank of St. Louis
The additional reporting require
ments will add substantially to an
already burdensome volume of regula
tory reports. This doesn’t happen with
out a corresponding increase in ex
pense to the bank. At this point, we
believe we can accomplish this report
ing requirement without hiring addi
tional personnel. H ow ever, those
assigned to the task probably will be
diverted from more productive pur
suits.
This is the second of two articles in
which bank and HC CEOs express
themselves on programs announced
March 14 by the President and Fed.
The first article appeared in the May
1st issue of M i d - C on t in en t B a n k e r .
It is too soon to report much reaction
to these voluntary controls from our
customers, although we can anticipate
with some degree of accuracy. For in
stance, we know already that indi
viduals are not really concerned with
the magnitude or method of imple
mentation of controls. They are in
terested in the end result. For many of
them, that simply will be more difficul
ty in borrowing even at higher interest
rates. Obviously, only part of the re
striction will be taking place across the
loan officer’s desk. Similar scenes will
be played out in a variety of ways as
banks tighten credit standards for their
credit cards along with similar moves
by many major retailers.
As mentioned earlier, the whole
cred it-tig h ten in g process is b itter
medicine for many people to swallow.
But if it succeeds, it will be worth all
the inconvenience and cost. In my
opinion, the objective of curbing infla
tionary pressures can be accomplished
if the program is given enough time to
operate, and if Congress does not neu
tralize it by providing additional funds
when the political shoe pinches. The
whole program could be destroyed by
a major tax cut or, as has been re
quested by the mortgage industry, a
(C ontinued on page 24)
Public-Policy Failures
Reason for Crisis
By Charles Pistor
HE RESPO N SE of much of the
business community and general
public to the Administration’s anti
inflation program has been one of con
fusion, frustration and concern over
the inability of government to restore
the confidence that is essential to price
stability and health of the economy. It
is distressing that the economic cli
mate has been permitted to deterio
rate into a crisis environment in which
inflation is rampant and forthright ac
tions are urgent.
Down in Texas, one of our leading
industrialists, Eddie Chiles, chief ex
ecutive officer of the Western Co.,
leads a media campaign in which he
rightfully decries, “I ’m mad; you get
mad, too because of the unnecessary
hurt put on our cou ntry, our
businesses and our people by the
wrong government actions. I support
his basic outcry. “ I ’m mad, too,
Eddie!’’
(C ontinued on page 21)
CHARLES PISTOR
Chairman
Republic National Bank
Dallas
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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A iitt'tu .H i ii x i m « .* C tuiuM H M
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J
No Growth Seen
In Consumer Credit
By Nat S. Rogers
HE C R E D IT-R E STR A IN T and
anti-inflation program undertaken
by the Fed March 14 is, of course,
forcing many of our 41 member banks
to follow a much more selective policy
than formerly in extending credit, be
ginning with the consumer sector. A
severe penalty is placed on a lender
who increases his outstanding consum
er credit, a penalty a lender and bank
such as First City National of Houston,
our largest m em ber bank, can ill
afford. It behooves us to make sure we
have no growth as far as consumer
credit is concerned. Any growth we
might indulge in in that area would be
extremely expensive for us in that we
would have to make significant addi
tional reserve deposits. Thus, there
would be no profit in such transactions.
In fact, we would conduct such trans
actions at a loss.
In the commercial-lending sector,
First City’s problem is severely aggra
vated by the fact that Houston is the
energy center of the country, and the
energy sector is particularly busy and
growing. Our tradition of service to
this sector has required us to build a
heavy backlog of commitments for
en erg y -related a ctiv ities, such as
domestic oil-drilling rigs and explora
tion for development of oil and gas re
sources. These commitments are larg
er than any we have had for many
years. Because we provide extensive
financial support for these activities,
it’s difficult for us to confine the growth
in this sector to the Fed ’s 9% growth
ceiling. This is a paltry growth figure
for the level of activity going on in the
energy sector.
NAT S. ROGERS
President
First City Bancorp, of Texas
Ftouston
18
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Therefore, our job is to be extremely
selective and to seek to curtail other
types of credit commitments whenev
er and wherever we can. Our growth
factor currently exceeds the 9% figure,
and so our prime objective is to bring it
back into compliance. Many banks are
in this situation, especially southwest
ern banks, most of which are growing
at a rate in excess of the 9%.
However, we will support the ener
gy sector to the greatest extent possi
ble, including efforts to sell participa
tions to institutions serving markets
that do not enjoy strong growth. I ’m
not sure how easily this may be accom
plished, but we’ll be looking for any
and all means of enabling our own
organization to comply with the Fed’s
program. W e’ll do this because the
program is intended to achieve some
thing fundamental and necessary to
our economy — and that is to arrest
inflation. Nothing else is more impor
tant than that!
The manner in which the program is
applied will generate distortions such
as I have described by placing a limited
flexibility of 6%-9% in loan growth.
That range does not make adequate
allowance for the normal and construc
tive operations of growth institutions
compared to those areas in the country
with limited growth, no growth or
perhaps even with a decline. In a city
such as Houston, the population is
growing at about 1,000 people a week.
This influx in ev itab ly gen erates
h eav ier co n su m er-cred it req u ire
ments here than in most other mar
kets. Unfortunately, we have no flex
ibility to fill growing needs.
I believe the Fed will be realistic
and grant banks now substantially in
excess of the 9% growth rate a reason
able time to achieve conformance with
the program. Banks in markets such as
Houston or Dallas, for example, where
there is a growing population and a
rapidly expanding economy, naturally
will have larger backlogs of commit
ments than do institutions in slowgrowth areas. To reduce the backlog of
commitments will take an extended
period of time.
We shall certainly urge our custom
ers not to use any unnecessary credit.
Especially, we want this process of
credit rationing to be as equitable as
possible and to make sure that credit is
necessary and productive when it is
used. Nonproductive types of credit
outlined by the Fed, such as take-over
credit — purchase of one company by
another — normally will be denied.
There may be rare exceptions where it
is clear that the result will be a more
(C ontinued on page 22)
Banking Industry Given
Unduly Heavy Part
By Edward M . Penick
HE CREDIT-restraint program as
announced by President Carter on
March 14 and implemented by the Fed
was long overdue. There is no easy way
to lick inflation. The entire nation had
been waiting for the Administration to
take a strong leadership position in the
anti-inflation fight.
Most anti-inflation measures that
had been announced previously have
had little or no effect. The main thing
they had done was to add fuel to the
fire of the inflation psychology that
most people in the cou ntry had
accepted as a standard way of life.
My criticism of the program would
be that it fell unduly heavy on the
banking industry and particularly on
the commercial-banking industry of
this country, so that now we find many
small businessmen and average con
sumers forgetting the fact that it is the
Administration’s program; and it is an
imposed restraint program by a gov
ernm ental regulatory agency, the
Fed eral Reserve System , and are
blaming their local banks for the whole
anti-inflation program.
There has yet to be any segment of
the economy pinched by the anti
inflation program other than that
which depends on credit. Congress
could come forward with a reduction in
some of its giveaway spending pro
grams and start a serious reduction in
federal spending so that some of those
who have become dependent on the
federal government giveaway program
would find that the gift of Washington
free-and-easy money has been cut off.
There would be an immediate realiza
tion that this anti-inflation fight is se-
T
EDWARD M. PENICK
Chairman
Worthen Bank & Trust Co.
Little Rock
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
THE CORRESPONDENT
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A t MHT, correspondent banking is one of our
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across the U.S. have chosen MHT as their
correspondent in America’s financial capital.
Identified above are the principal ways we
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diverse services— from factoring to money transfer
and wire, from bank money orders to staff training
programs.
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Talk over your needs w ith your MHT Calling
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When we take you under our wing, we take
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rious.
Worthen Bank, being a major credit-card-issuing bank with a large con
sumer base, has announced creditrestraint programs dealing primarily
with the consumer area — though not
exclusively. This restraint program
started in 1978 because of the usury
restrictions of the state of Arkansas that
made consumer lending unprofitable.
The bank sponsored a test case through
our state supreme court to determine
whether a fee for the issuance of a cred
it card was to be considered as interest.
When the Supreme Court ruled that
this was not interest, this bank started
a fee for its credit-card system in early
1978, charging $12 for one card and
$15 for both cards. Our new fee sche
dule has gone up to $18 for one card
and $20 for the two cards. We also
previously reduced the number of
months for payment on a credit-card
account from 20 months down to 15
months, and this was not changed with
the President’s program.
In the general consumer area, we
raised our minimum loan to $2,000.
We are restricting our consumer credit
to checking- and savings-account cus
tomers of the bank and have reduced
our available funds in the automobile,
home-improvement and other dealer
lines.
On the commercial side, we also are
restrictin g our available funds to
account customers of the bank and to
those primarily in business in our
general market area. A loan for a loan’s
sake no longer is permitted, and every
loan is critically analyzed from the
standpoint of long-term customer rela
tionships. All these provisions have
been received different ways by differ
ent people. Many people who had car
ried the credit card for a prestige pur
pose and didn’t use it have dropped the
credit card. Others have taken the
opposite approach. That being, that if
they are going to pay that much for the
card and if consumer credit generally
in the retail stores they patronize is
being cut off, then they are going to
use the card the way it was intended.
The customer is a little more know
ledgeable and has been exposed to
high interest rates as part of the in
creased cost of doing business; and
though he does not like 20% rates of
interest, neither does he like the regu
lar increases in the cost of everything
else he purchases. C onsequently,
most commercial customers who are
able to pass on the high cost of money
to their customers have accepted it. It
is that group of customers who cannot
pass on the high cost of money that has
been damaged most seriously.
as was true with earlier attempts at
legislated wage-price controls.
6.
Earlier pursuit of a monetary and
credit policy that for some time failed
to curb a seemingly insatiable appetite
for credit used to finance price in
creases and calls on real resources that
were nourished by expectations of
further serious inflation ahead.
The sharp increase in crude oil
prices by O PEC producers in late 1979
was a significant factor in bringing the
inflation crisis to a head. Yet, it can be
argued that the factors enumerated
played a large role in the decision to
raise oil prices denominated in infla
tion-debased dollars. For too long a
period, government policies failed to
recognize the damage that inflation
would wreak on the economy and peo
ple’s lives, and politicians temporized
by not espousing disciplines that solu
tion of the nation’s critical problems
required.
Such is the perspective for inter
preting the anti-inflation program and
the response to it. Most significant
from the viewpoint of the banking in
dustry is that monetary and credit re
straint is the centerpiece of the pro
gram. The immediate burden of re
straint rests squarely on the shoulders
of the Federal Reserve in an effort to
slow down an excessive growth rate of
money and credit. Undue reliance on
credit restraint produces many imbal
ances and inequities, but perhaps they
are now unavoidable against the
alternative of far worsening conditions
if inflation were allowed to escalate
C harles Pistor
further. Banking and monetary author
(C ontinued fr o m page 16)
ities for some time have emphasized
the limitations of monetary and credit
Why? Because the crisis is the cul restrain t toward curbing inflation
mination of a whole series of public- while the federal budget remains in
policy failures that for some time have heavy deficit. Several years ago, then
gnawed away at the vitality of the pri Secretary of the Treasury William
vate sector of the economy, on which Simon warned that federal borrowing
stability and growth depend. Among to finance the deficit would crowd out
private borrowers from financial mar
these failures are:
1. Delay and ineffectiveness in deal kets. That day has arrived!
It is consequently encouraging that
ing with the critical energy problem.
2. Loss of productivity as a result of fiscal restraint also is an integral part of
weakened incentives for capital invest the anti-inflation program, especially
ment, inattention to the work ethic and since the Administration was forced by
pressures from congressional budget
excessive governmental regulation.
3. Continued massive government ary authorities to scrap budget propos
spending and credit programs result als submitted in January and to present
ing in huge budgetary d eficits, revised estimates calling for a balanced
burd ensom e taxes and excessiv e budget. The resulting degree of re
straint on federal spending still is too
growth of guaranteed debt.
4. W eakening of our defen se painfully weak and achievement of
strength to the point of encouraging actual balance remains in doubt, but
challenges to our nation’s international the fiscal portion of the program can be
viewed constructively as evidence of
political stature.
5. Dependence on a system of wage- belated recognition that government
price guidelines that, while voluntary, spending is a principal cause of infla
has not held the line on wage demands, tion and that the effectiven ess of
One major group of customers who
fall into this category is made up of
farmers who service the agricultural
economy of our state. The farmer has
seen the cost of everything he pur
chases escalate D/2% to 2% a month;
and yet if you analyze the price he gets
for his product, soybeans, rice, cotton,
cattle, poultry and others, those prices
have risen little in the last few years.
This squeeze is eliminating a lot of cap
able, hard-working farmers who just
cannot make it under these types of
market conditions.
The Fed’s actions standing alone will
not, in and of themselves, bring a halt
to inflation. The Fed’s actions, howev
er, are important to the fight against
inflation for they are the first signals
that the Administration is serious
about the inflation fight, is not going to
just pay lip service to it and is willing to
take the criticisms of many in order to
start to bring inflation under control.
This can be accomplished only if there
is a joining of the Fed’s action with that
of C ongress and a con servativ e
approach on the part of every voter
requiring accountability from every
person elected to Congress this com
ing November. No one regulation, act
of Congress or ruling of some gov
ernmental body will cure inflation. It
will be cured only when the people of
the country realize its costs to every
one and demand financial accountabil
ity of those who make the laws. • •
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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Federal Reserve Bank of St. Louis
21
monetary and credit policy, with its
potential unfairness and inequities, is
impaired by large and continuing
federal deficits. Especially in an elec
tion year, one can find hope in the
agreem ent regarding the need for
monetary and fiscal restraint that now
prevails among econom ists, policy
makers, legislators, the business com
munity and even the general public.
Painful for many as the prescription
may be, the alternatives would be far
worse if the inflation disease were
allowed to progress. A critical mistake
was made in the 1970s, when monetary
and fiscal policies were eased and re
liance was placed on wage-price con
trols to curb inflation. Thus far at least,
that mistake has been avoided this
time.
Clearly, the most important direct
element of the new program for bank
ing is its stepped-up emphasis on both
the cost an d availability of credit. For
some time, interest rates were permit
ted to rise only slowly, but they began
to advance more rapidly last autumn.
However, the substantial rise in the
cost of credit was not accompanied by a
significant decrease in its availability,
except in limited sectors such as single
family housing. Thus, the Administra
tion came under pressure to activate
the Credit Control Act of 1969, which
authorizes wide latitude in Federal Re
serve actions to impose selective or
qualitative restraints on credit. One
might have expected significant reduc-
Pistor Gets New Post
DALLAS — Charles Pistor be
came chairman/CEO, Republic
Nat l, April 15, succeeding James W.
Keay. Mr. Keay will devote full time
to his post of vice chairman of Repub
lic of Texas Corp., parent company of
Republic Nat l.
Mr. Pistor has been succeeded as
bank president by Joseph R. Musolino, formerly vice chairman.
Mr. Pistor joined Republic Nat 1in
1956. Mr. Musolino went there in
1964.
tions in credit demand and availability
of credit if the high levels of interest
rates had been given time to work their
way through credit markets and the
economy. But a sense of urgency to
take quick action forced adoption of the
selective measures, in the face of fre
quently stated previous opposition of
the Fed to that approach.
The brief time that has elapsed since
the new measures were initiated is too
short to assess their probable degree of
success. The tone of financial markets
has been one of shock, confusion and
uncertainty. Extension of controls
beyond the confines of member com
mercial banks to a broad spectrum of
participants in financial markets adds a
new dimension to Fed policy. We are
in a new ball game. There is wide
spread concern that the restraint pro
gram will have drastic effects on many
lines of econ om ic activ ity and
businesses related to them. In the face
of sharply increased price levels, banks
are being confronted with persistently
large dollar demands for funds, at the
same time that they are being asked to
restrain growth in loans under a volun
tary credit-allocation program. This is
posing a tremendous challenge to man
agement — especially in growth areas
where needs for credit are so strong —
to allocate resources to productive
uses. It is posing a challenge for other
financial markets that are having to ad
just to a regulatory environment that is
new to them; it is posing a challenge to
business firms whose operations are
affected by the cost and availability of
credit for themselves and their cus
tomers, and it is posing a challenge to
consumers, whose spending habits and
financial affairs are to be tested against
a government policy designed to slow
down spending on borrowed credit
and lower the inflation rate.
That markets will adjust to the new
ball game is clear. They always do.
What is not as clear is how much prog
ress we may achieve in correcting the
public-policy failures that led to our
nation’s disastrous inflationary en
vironment. The fire is in the theater,
and it must be put out at all cost! The
absolute critical necessity of support
ing corrective actions lies with us all.
N a t Rogers
Tolerate Credit Tightening, Says Roos
W
E SIM PLY can’t expect to withdraw from a 15-vear economic
binge and not suffer a hangover, said Lawrence K. Roos,
president, St. Louis Fed, recently, while calling for public support of
current Fed anti-inflation policies.
He urged those who are currently feeling the adverse effects of
credit restraint to tolerate temporary economic distress in order to
achieve a lasting reduction of inflation.
He warned that any retreat from the Fed’s present policy of reduc
ing growth of the money supply would heighten inflationary expecta
tions and lead to higher interest rates than are presently being
experienced.
Mr. Roos stressed that “continued inflation could destroy the
political and social institutions that have made America great,” and
called for public support of current Fed anti-inflationary actions
“even if it means temporarily higher interest rates and some softening
of economic activity. ”
He added that the Fed isn t responsible for present high interest
rates. He attributed the rates to recent increases in the demand for
credit. He also rejected wage and price controls as an effective tool for
fighting inflation, charging that controls only dam up the flow of the
economy, .causing it either to seek other channels, such as black
markets or similar avenues, or simply to gather a new momentum for
a burst of inflation once the controls are lifted.
22
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(C ontinued fr o m page 18)
productive and efficient enterprise.
They will be examined case by case,
but, as a general principle, there will
be few such cases.
I believe a wider growth-rate band
of perhaps 5%-15% would have been
desirable. The 6%-9% figure seems to
be forcing everybody into an almost
common pattern even though there
are wide differences in growth rates in
various sections of the country.
Our customers are apprehensive
that their credit needs will not be ful
filled, but our own policy is to examine
every request conscientiously. In addi
tion to supporting energy activities,
which are constructive and which will
enable us to reduce the amount of im
ported oil, we have a strong obligation
to smaller businesses and middlem arket com panies. T h ese la tter
businesses rely entirely on local banks
rather than on larger money-center in
stitutions. In this process we may well
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
panies, positions we developed over a
long period. However, it’s more im
portant for us to support local enter
prises that don’t have alternate loan
sources.
This program will result in added
paperwork for banks, and the Fed’s
statement that paperwork would be
minimized is one we can’t afford to take
too seriously. It’s obvious there will be
a great deal of reporting required — an
inevitable part of the bureaucratic pro
cess. We won’t be hiring more people
at our bank because our volumes are
going to be less than planned for 1980.
In fact, we have put a freeze on headcount growth. We simply can’t afford
to hire any more people since our
growth is going to be limited in this
manner. We will have more timeconsuming reports to file, but it will be
accomplished with our present staff.
We urgently need a program de
signed to tackle inflation, which is the
most pernicious problem we face. It’s
been building for many years, and sac
rifices are necessary. The bias favoring
consumption should be restrained,
and we must attain an increase in the
rate of savings. Firm action to pay our
way as we go on the fiscal side is essen
tial, and that means a balanced federal
budget. (W e haven’t done nearly
enough in that regard so far.) If we
combine those actions with the Fed’s
continuing efforts to stabilize growth in
the money supply, we should enjoy
marked progress in reducing inflation
within the next 12 months.
It will take years to overcome infla
tion completely, but if we can get it
down to a single digit as rapidly as
possible, we will be on the road to
recovery. For several years, we have
been moving in the wrong direction.
As I have pointed out, although
there are severe penalties and in
equities in this program, we certainly
support the Fed’s objectives and will
do everything within our power to
comply. • •
R obert Jackson Jr.
(C ontinued fr o m page 18)
$ 10-billion special fund to pick up
mortgages so they can continue to put
new business on the books. Somehow
the budget must be balanced and not
by use of creative accounting.
The Fed is using the only tool it has
available to it, namely high interest
rates, but this alone cannot stop infla
tion. This is evidenced by the exorbi
tant interest rates in South America
that are accompanied by continuing
runaway inflation. What we need are
more statesmen and fewer politicians
in Congress who will look at the total
good instead of selfish special in
terests. Inflation will ruin our eco
nomy, and this may well be our last
real chance to stand our ground. • •
Missouri Young Bankers
To Meet June 10-12
The annual Young Bankers Confer
ence of the Missouri Bankers Associa
tion is set for June 10-12 at Marriott’s
Tan-Tar-A Resort, Osage Beach.
The conference will feature John
Wells, vice president, First National,
Denver; Jim Perry, dean, school of
business, Central State University,
Norman, Okla.; and Frank Spinner,
president, Tower Grove Bank, St.
Louis.
Alan Harkness and Ralph Clermont,
Peat, Marwick, Mitchell & Co., St.
Louis, will speak on one-bank HCs. A
special feature will be a past presi
dents’ panel that will address special
problems in the banking industry.
MORROW
ROSS
Chairman of the MBA young bank
ers committee is Mike Ross, senior
vice president, Bank of St. Louis. Vice
chairman is Larry Morrow, vice presi
dent, American National, St. Joseph.
Mr. Ross joined Bank of St. Louis in
1976 as a correspondent banking offi
cer. He now is head of the correspon
dent and regional banking group. He is
on the AIB faculty and is attending the
Graduate School of Banking at the Uni
versity of Wisconsin. Mr. Morrow
joined American National in 1971 and
now is head of the correspondent banking/agricultural lending department.
He is a graduate of the Colorado School
of Banking, the ABA National Com
mercial Lending School and the In
termediate School of Banking. He is a
past president of the St. Joseph AIB
Chapter.
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BANKof A M ER IC A
C o rre s p o n d e n t B a n kin g Services
Opinion Varied on Thrust, Effectiveness
O f Fed's Credit-Tightening Action
,
'Credit A llo catio n / 'Cosmetic A c tio n / 'Too Little Too Late'Among Comments
Fed Provides Chance
To Get Houses in Order
Credit-Request Denials,
Project Phase-outs Seen
By Lee Griffin
President
Louisiana National
Baton Rouge
By George A. Baker
Executive Vice President
Continental Bank, Chicago
HE F E D ’s credit-tightening ac
tion has given banks an opportu
nity to get their houses in order and to
review their credit pricing policies.
Louisiana National initiated a $12
annual fee for its credit cards, some
thing it should have done long ago. The
fee will begin this month and is payable
at the time new cards are issued. Re
sponse so far has been good — only
about 3% of our customers have can
celed their lines of credit.
The bank’s an nouncem ent was
timed well, as it came out at about the
time President Carter made his speech
about curbing credit to combat infla
tion. The timing was coincidental,
since the bank already was involved in
tightening its credit policies.
Our account loss is expected to be
less than 10% because people are cau
tious about canceling a credit card
account because they fear it will be
difficult to secure such a line of credit
in the future, so they want to hold on to
the lines of credit they have.
Credit-tightening policies should
have been initiated long ago. Banks
have been losing income due to credit
card convenience users — those who
pay their balance every month in full
— and reduced merchant discount
rates, triggered by card duality. When
duality occurred, many banks acted
hastily to build credit-card bases and
good credit judgment was not always
used. Mistakes resulted in high losses
in some cases.
The Fed’s action provides an oppor
tunity for banks to reevaluate and slow
down their credit-card operations and
T
26
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
BAKER
GRIFFIN
improve them. The Fed’s action has
resulted in a better awareness of the
situation and has encouraged more
rapid credit tightening on the part of
banks.
The Fed didn’t initiate this action,
but its announcement supported it.
Banks were retrenching before the
Fed acted due to the cost of money
getting close to the usury rate.
The Fed’s action will help bring on a
recession and make it a deeper one
because the consumer spending slow
down will have a dampening effect on
the economy that will contribute to a
recession.
The Fed’s action doesn’t deal with
the basic problem of long-term infla
tion, however. It’s only a temporary
move. Until we can balance the federal
budget and pass legislation to give
meaningful incentives to people to
save and invest and until tax incentives
are passed that result in improved pro
ductivity, inflation won’t slow down.
The inflation rate is so high that the
depreciation allowance is no longer
sufficient to encourage long-term in
vestment and the investment tax credit
isn’t sufficient to encourage invest
m ent in new equipm ent. A more
accelerated depreciation allowance is
needed to encourage investment in
more efficient plant and equipment so
that more production can be obtained
with the same amount of labor.
The Fed s action definitely will slow
credit expansion. Many banks will be
pulling in their horns in commercial
lending as well as consumer lending.
HE E F F E C T of the Fed’s credit
tightening action is that we won’t
be able to meet all our customers’ bor
rowing requests. Custom ers have
been setting up commitments in re
cent months in anticipation of the
Fed’s action.
Where it begins to bite is hard to
predict. With the prime at 20% (at the
time this was written), people are still
borrowing. Obviously, different kinds
of projects get phased out at different
levels, but some industries are con
tinuing to feel that they need to borrow
and set up additional credit require
ments.
The demand for commercial loans is
increasing right along, despite govern
ment edicts. W e’re automatically up
15% in dollars over last year due to
inflated dollars. If a customer is car
rying inventory, he finds that the cost
of that inventory is automatically 15%
higher than it was a year ago.
In my view the Fed’s action will not
have an effect on inflation unless the
government comes to grips with the
fundam ental, underlying problem
causing inflation — governm ent
spending. This action by the Fed is just
playing with numbers again. Inflation
is going to be influenced by whether or
not the government wants to live with
in its budget. The Fed’s credit-tighten
ing action is just an artificial way of
using monetary policy to deal with the
problem. If the President sticks to
what he says he’s going to do in com
bination with the monetary restraint
placed on the banking industry, a posi(C ontinued on page 28)
T
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27
tive impact on inflation could result.
But there’re so many things built into
the inflation situation at this point that
there can be no dramatic impact on
inflation. Inflation is going to run dou
ble-digit as far into the future as we can
see.
The Fed’s policy will have an im
mediate impact on people borrowing
money, but a delayed effect on what
the end products of that impact will be.
If firms put off projects, if they don’t
buy equipment, if they stop expansion
that they would otherwise have under
taken, the delayed impact months or
years later will be felt in reduced em
ployment — things of that nature.
'Interesting Times'
Bring Credit Re-Pricing
By Eugene L. Mahaffey
Vice President
Commerce Bank, Kansas City
F I ’VE heard it expressed once, I ’ve
heard it a dozen times — the
phrase “interesting tim es.’ While to
day’s economic situation of rapid infla
tion and approaching recession is
perhaps not unique, the level of in
terest rates and the government ac-
I
HALDEMAN
MAHAFFEY
tions to address them are causing bank
ers of 20 to 30 years’ experience to say
that this is different from any previous
experience.
Reactions by my peers in the indus
try to the recent moves by the Fed
vary widely, from “business as usual”
to a discontinuation of acceptance of
new credits and a rollback in estab
lished credit lines. But the overriding
reaction is a long overdue re-pricing of
a service that traditionally has carried a
large segment of its cus tomer base free
of charge. As state legislatures lift
usury ceilings, banks rapidly follow
suit with their interest rates. Annual
fees, where allowed, are becoming
commonplace. W here such fees are
prohibited, elimination of the free
period, net account concepts and dis
cussions of other changes abound.
A major concern of mine is how all of
this will be perceived by the consum
Fed Action Seen as Credit Allocation Move
The follow in g statem ent was p rep a red by R obert M orris A ssociates
and is b a sed on a survey o f a portion o f its m em bership.
HE CONSENSUS is that the Fed’s program provided the shock
that the country needed to slow down the economy, but is at the
same time another move toward credit allocation. Each of the bank
ers polled by Robert Morris Associates was in favor of controlling
inflation but indicated that credit control is not the best way to
accomplish this goal. Many said the effect of the program will be
substantial in the growth areas of the country, such as the sunbelt
region. In parts where there is little or no growth, there won’t be
much change.
Bankers across the country feel the program’s effect on inflation
will be minimal. To cut the inflation rate measurably, the federal
government must see that productivity is improved, spending is
reduced and the budget is balanced, they said.
Many bankers said their customers have put lids on borrowing.
They expressed concern for small businesses which, along with agri
culture, are being cared for. However, many think that many small
businesses will be falling by the wayside in the coming months, not
necessarily because of a lack of credit availability, but because of
credit’s cost. As one banker put it, “I don’t know what business can
borrow today and still afford to survive. There’s an economic point at
which a company can no longer afford to borrow. We had reached that
point before this program went into effect. Now things will accelerate
even m ore.”
Any slowdown will have a severe impact on business and there will
be layoffs as a result.
T
28
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
er. Will we be labeled as responsible
businessmen sensitive to the economic
needs of the country who, at presiden
tial direction, are acting to restrict the
inflation-causing cred it expansion
trend? Or will we be viewed as oppor
tunistic “price gougers” increasing
prices to consumers as our institutions
continue to record new levels of prof
itability?
Ideally, I would hope the consumer
views us first of all as fair, offering a
useful product at a reasonable price;
that we are sensitive to the economic
needs of the country but that we won’t
take the umbrella away when it rains,
i.e., we will continue to service their
needs in bad times as well as good. And
finally, that we want to keep them as
customers.
This will be our job in the months
ahead but it won’t be easy. There will
have to be a redefining of the products
and services we offer. The distinctions
between credit services, transactional
services and savings services will b e
come less and less. As NOW accounts,
debit cards, net accounts, etc., be
come reality, each cluster or mix of
services must be costed and priced
accordingly.
In my opinion March 14th will be
viewed by the banking industry as
either a revolution or a renaissance,
depending on each institution’s ability
to meet the challenges and opportuni
ties ahead. Those who are inflexible to
the demands of the consumer and gov
ernment regulations and those who re
sist competitive pressures from the
many types of financial institutions en
tering our industry’s traditional do
main will find themselves unable to
compete and eventually will be forced
out of the marketplace or absorbed.
Institutions that are innovative and
remain flexible to take advantage of
product and service opportunities may
ultimately look back on this period as
one of a re-awakening; a new era of
servicing the custom er’s needs, be
they in the credit, transactional or sav
ings areas.
Truly, these are interesting times!
Many Hardships Seen
From Fed's Credit Action
By Earl N, Haldeman III
Assistant Vice President
First National, St. Louis
HE F E D credit-tightening pro
gram has increased the cost of bor
rowed funds. It will therefore limit the
T
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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dollars available for lending.
The restrictions being placed on
lendable funds are going to cause some
hardships from the standpoint of little,
if any, increase in lines of credit to
borrowers, a cutback in amounts ex
tended to some borrowers, none ex
tended to others and, in some cases, no
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gram, and it’s going to reduce borrow
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the money supply.
It’s going to create some problems:
higher operating costs for borrowers,
both agribusiness and producers; it’s
going to increase the cost of goods sold
to producers and therefore their oper
ating costs as well as the interest costs
on funds borrowed by producers. So
producers will be hit with a double
whammy.
The prices producers receive prob
ably are going to be lowered, due to
increases in interest costs being passed
down by suppliers, such as grain eleva
tors and packers. Th eir inventory
handling costs are going up, so they’re
going to reduce the price paid to cover
this extra expense. The result probably
will be — from the producer’s side,
due to his increased costs — that he’s
got to stay within some kind of operat
ing budget. If he hasn’t budgeted yet,
he’s going to have to this year.
The result will be reduced use of
inputs by producers, therefore reduc
ing sales, both from what is sold and
from what agribusiness sells to produc
ers. There 11 be a lower amount of pro
duction from the producer’s side.
These items are all going to affect the
entire ag economy with reduced over
all net income in production. This, in
turn, is going to affect loan quality,
repayment ability of borrowers and re
sult in some difficult times for some
borrowers. W e’ve already seen a few
instances where people have thrown
up their hands and are having farm
sales.
The overall effects of the program
will include things such as, in the case
of landowners, the tremendous paper
wealth they’ve created. What they
have gained due to inflation is going to
be reduced and those who have gone
out and leveraged themselves in order
to expand are going to find themselves,
in many instances, short of cash flow
that’s needed to meet debt and operat
ing requirements.
Another area to be affected will be
the young farmers just starting out.
They probably will be forced out of
business in many cases, unless they
can receive backup assistance from
family or some other source. It’s going
Credit Restraint Urged
Card holders throughout the
U. S. are being urged to use their
MasterCards and other personal
credit instruments prudently and
with restraint in a TV and radio
message prepared by Interbank
Card Association.
Shot against a Washington back
ground, the public service mes
sage, delivered by Russell E.
Hogg, Interbank president, stress
es the importance of the individual
card holder’s efforts in the fight
against inflation and advises limit
ing credit-card use to necessities
and emergencies.
“We re all feeling the money
squeeze these days and Washing
ton has asked us all to help fight
inflation,” the message says. “Buy
only what you need. Don’t over
extend. And, starting today, use
your MasterCard only for necessi
ties and emergencies.
“In fact, handle all your credit
cards and charge accounts with
good sense . . . and great care,”
the message concludes.
to be more difficult for the potential
“new blood entering agriculture to
get started.
Another area affected will be farm
and agribusiness expansion. These are
going to be curtailed in the near term
because of reduced sales income and
opportunities to produce a profit.
This year, supplier credit is going to
be tougher to obtain. Farm supply
firms aren’t going to supply credit too
readily to farm customers. They will be
careful. All this places the bank’s lend
ing position in a much tighter posture.
Banks are going to require additional
collateral — more equity in some
cases, tighter collateral controls such
as a third-party warehouse receipt,
higher interest rates — to cover the
risks and handling costs. This is in
addition to the higher rates we re
seeing due to the supply and demand
of money. These are additional margin
requirements to cover banks’ expo
sure.
Overall, it’s going to be a lot tougher
to get bank credit. Banks are going to
be hard on existing customers and
harder yet if they accept new custom
ers. A lot of this is due to the Fed’s
controls, which make the acceptance of
new customers by banks quite diffi
cult.
In general, the policy is tough and its
results are tough. It’s difficult to accept
the problems being caused, but in the
long run, such may be the best — and
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
only — thing that can be done, because
if we can stop the inflation process
now, more serious credit tightening
may be prevented later. It’s really the
lesser of two evils. It’s tough today, but
if we don’t take action, it’s going to be
tougher tomorrow. • •
Ag Customers Frightened
By Fed's Credit Action
By George Sell
Senior Vice President
First National, Lubbock, Tex.
U
P TO NOW, monetary policy ac
tions have had a fueling effect on
inflation. The people of the U. S. have
acquired an inflation intellect — think
ing anything they do today should be
done now because it will cost more to
do it tomorrow. This attitude has ne
gated the effect of high interest rates.
Ag customers are less inclined to
think that way. They have been buying
machinery up to the last weeks, but
with the prime hitting 20%, they’ve
become frightened people. They think
we re on the verge of a severe eco
nomic crisis. They’re holding back on
capital expenditures because of their
fears.
The Fed’s tightening effect on agri
business makes it harder for a producer
to make a profit. The cost of money has
gotten to a level where its hard to make
an ag enterprise work — especially a
feed-lot cattle operation. An average
600-700-pound steer will have a $65-70
per head interest bill on him when he
comes out of the feed lot. This is a
significant cost and can make the dif
ference between profit and loss.
In recent months, losses have been
increasing. Farmers are beginning to
not place cattle on feed as a result. The
fat-cattle market has taken a sharp
downturn in the past few weeks. In the
last 60 days there has been a slowdown
in putting cattle on feed. In a few
months, a lower number of fat cattle
will be coming to market. Then the
packers will be killing grass-fed and
milk-fed calves, assuming there’s a de
mand for them.
The Fed move has taken people
beyond the inflation mentality and has
scared them. This caused them to look
at their “hole card,’’ maybe begin to
think again about saving some money
and paying off some of their debts.
There’s no question that the econ
omy needed slowing down. But there’s
now a danger of overkill. The Fed
needs to be attentive to the situation
31
and be ready to take loosening mea
sures rather than tightening further.
Fiscal measures should be taken by the
federal government so the budget can
be balanced. If necessary, taxes should
be increased to do this. Spending
should be slowed. But this isn’t politi
cally feasible this year. • •
Portfolio-Quality Rise
Seen Over Long Term
By Robert K. Georgeson
Executive Vice President
First National, Lawrence, Kan.
H E V A R IO U S m onetary and
credit actions that the Fed has im
posed are going to have a noticeable
restraint on the volume of consumer
credit in the short run. I think prob
ably over a period of time they will
tend to increase the quality of bank
portfolios. In the longer term, as they
are now structured, they also will be
effective.
If the mechanics don’t work, there’s
an attitude that, coupled with some
other things, is going to be hard to sort
out. For example, we may be starting a
credit crunch — we may be well into
it. In the longer term, the effect of the
various plans is going to depend a great
deal on whether or not the Administra
tion and the Fed can withstand the
political pressure to change policy. As
the political campaign heats up, it will
be surprising if P resid en t C arter
doesn’t yield to pressures not to tam
per with the mechanism. The Fed is
supposed to be independent of the
Administration, but some actions over
the past few years have shown that the
Carter Administration has influenced
the Fed, so it isn’t totally immune to
Administration pressure.
The idea is to curb consumer spend
ing, but one of the things that my jury ’s
still out on is the exceptions to the
controls that include such areas as
p u rchase-m oney
m ortgage-type
items, which would include consumer
goods that are bought on conditional
sales contracts. For example, loans
from savings accounts are exem pt
from the 15% reserve clause, so there
still is a way to buy consumer goods.
One of the things that’s going to be
difficult to sort out is whether the Fed’s
program is working or whether usury
limits are doing the job. At a certain
level, I ’m sure there’s no market for
money. If the market exists and the
demand exists and we had unlimited
pricing with no usury restrictions, I
suppose we could operate as usual, put
T
32
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
payment mechanisms and levy other
charges that might not have been im
posed without the Fed ’s action be
cause of marketplace considerations. I
think banks are going to get rid of card
holders who have been costing them a
lot of money and whom banks no longer
want on their books. And now they can
blame the Fed for taking such actions!
The Fed’s action could be a boon to
the
industry, but I think the trend
TIDWELL
GEORGESON
already was moving in that direction of
credit tightening and this action prob
ably will add momentum to it.
up our 15% reserve and pass the cost
At the same time, a few of our mem
on to the consumer. That would be an
bers have had some problems with
inflationary program. But I feel this
concern on the part of individuals. Giv
won’t happen. I feel the regulations are
ing a 30-day notice that credit grantors
going to be effective as they’re now
are going to make changes, especially
structured. Foan portfolio growth will
changes in terms, has made card hold
be reduced and that will reduce the
ers nervous. T h ere’s a danger that
rate of increase in the money supply.
we’re going to see people go out and
At our bank, we’ve increased our
run up their credit balances and lend
down-paym ent req u irem en ts, up
ers are going to be forced to put up
graded credit background require
their 15% deposit at the Fed. This
ments and the customer’s ability to
tends to be a continuing concern on the
pay.
part of CBA members.
Out of a $38-million loan portfolio,
Also, many CBA members find the
which includes our real estate, com
present Fed regulations on changes in
mercial and installment loans, we have
terms are operationally unworkable.
only $4.25 million that falls into the
Those who consider the regs workable
Fed’s guidelines category. This sur
say they won’t be able to implement
prised us. We went through our loans
them until sometime between July and
individually instead of taking the per
October, which goes to show that if the
centage route.
reason for giving lenders this power is
If the government doesn’t bite the
to cut down on credit or reduce it, the
bullet and quit spending, inflation’s
effect won’t be apparent for some time.
not going to be reduced much. You
It amounts to a delayed-action situa
wonder what the Fed’s going to do
tion because of the requirement that
with that 15% in free reserves. I ’ve
bankers must send notices to consum
seen no information about that! • •
ers and that if consumers use their
cards they’ve accepted the terms. I ’m
told by those in the operations area
Fed Action Reinforces
that this will be very difficult to accom
plish. It can be done by certain larger
Bank-Initiated Pullback
institutions, but for smaller ones it
By Drew Tidwell
can’t be done at all, or will take a long
Vice President
time.
Consumer Bankers Association
A more efficient way of cutting down
Washington, D. C.
on credit would be to allow rates to rise
to the market level. Usury in the long
run makes money cheaper than it
FTE R TAFKING with a number
should be and has more of an impact on
of members of the Consumer
encouraging consumers to spend than
Bankers Association, I believe that
anything else. In areas where rates
credit controls have been imposed at a have gone up, such as in the housing
time when the industry, especially in
market, we find that people just aren’t
the bank-card area, already was begin buying anymore. Complete abolish
ning to pull back. All the Fed action
ment of usury limits would be a far
did was probably to accelerate a trend
more efficient mechanism for trying to
that was going to occur anyway.
attain the Fed ’s goal than anything else
To a certain degree, the action has
they’ve come up with.
given lenders an excuse to take actions
Taking out after credit cards was an
that might, in the long run, make bank
easy political ploy. It caused our mem
cards far more profitable than they had
bers a lot of headaches and we doubt in
been previously. Now banks can cut
the long run that it’s going to do that
down on lines of credit that have been
much good. The credit card people
unprofitable; they can modify pre already were moving in the right direc-
A
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Tím e is money.
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That’s why it pays to sell
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Why spend any more time
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
*«:JOfO»ODO
w
-noi'iui.i.w
tion to tighten credit. They were being
forced to because they were losing
their shirts.
I don’t see much more tightening
that could be done by the Fed. I think
the credit card people are proving to
the regulators that their actions are
sufficient to forestall any more action
by the Fed.
Probably a complete deregulation of
the industry at both ends as far as what
we have to pay for money as well as
what we have to charge for loans
would, in the end, do more to relieve
and control inflation, but as long as
you’re putting artificial price restraints
on both lending and deposit-taking,
you’re never going to have an efficient
system. We re in a situation where it
could be said that the protections built
in during the 1930s are coming back to
haunt all of us, fostering inflation at this
time and creating inefficiencies. • •
Price-Relief Legislation
Supported by Visa
A federal legislative proposal to
afford pricing relief on bank charge
cards was endorsed by the Visa USA
board recently.
The proposal would deregulate all
charges on bank cards to the extent
they are used as a convenient payment
device. The entire process by which-a
transaction is completed between card
holder and merchant and paid in full by
the custom er within a reasonable
period would be considered a payment
transaction. The proposal calls for this
transaction process to be priced in an
T he Im p o rta n c e o f Responsible C ritic is m
E d itor’s Note: The follow in g statem ent was m ade in connection
with Big Business Day, sp on sored recently by a b ro a d coalition o f
union, liberal an d consum er political action groups to target what
they term the abu ses o f large co rp o ra tio n s.
By C. C. Hope Jr.
President
American Bankers Association
B
ANKERS, as do other thoughtful citizens, recognize that re
sponsible criticism of various elements of American society has
been and always will be an important part of our system of checks and
balances. In a democratic society, this is a necessity.
At the same time, however, we feel strongly that such criticism
should be constructive, not destructive, and should be targeted at
real abuses or excesses, rather than launched with sweeping generali
ties that tend to tar all with the same brush. In our opinion, business,
whether big or little, plays a vital role in weaving the economic and
social fabric of our country.
The business of banking, for example, is one that affects each and
every one of us in a positive manner — from family home owners to
large industries that depend on raising funds to grow, create jobs and
contribute to our national economy and well being.
Certainly, our larger banking institutions often are in the national
news because their vital role in our economic system is more visible.
Yet only a small number of the more than 13,000 commercial banks in
our ABA membership fall into this category.
The great majority of America’s bankers operate day in and day out
in local communities across the nation. They provide financial ser
vices not only for business and industry but for farmers, small
businessmen and women, builders, college students and other indi
vidual consumers.
At a time when the country is facing severe internal economic
strains as well as difficult international problems, I believe we might
better focus on the strengths and contributions of our economic
institutions rather than their blemishes.
In my travels back and forth across our great country, I find that
most Americans feel this way. They are proud of the principles of our
private sector institutions that contribute so much to our strength.
We, as bankers, are proud of the role we have played and continue
to play in the growth and development of our society.
34
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
open market free of restraint. The
funds necessary to complete this cycle
would be considered a part of the pro
cess and not an extension of credit and,
therefore, not subject to state usury
laws.
‘‘There is general agreement among
the financial and retail communities
that state usury laws should be pre
empted by federal legislation and that
all charges for payments services or
credit be established by free market
competition,” said Charles T. Russell,
executive vice president, Visa USA.
“Our eoucern is that such proposals
may take considerable time. Mean
while, bank card issuers are losing
money and card holders and retailers
face serious curtailment of service.
Our legislative proposal is designed to
provide immediate relief for the indus
try and to forestall adverse effects on
service.”
Are You Prepared?
(C ontinued fr o m page 12)
delivery, or do they follow predictable
patterns?
These questions should provoke
thoughts along the lines of physical se
curity, for adverse answers will reveal
weaknesses in your physical security
setup and could easily indicate trouble
spots that eventually may result in
large losses.
Are you exercising rigid cash con
trols in your bank?
There is an extremely valid reason
for a bank not to want to attract bank
robbers. It is the protection of the lives
of personnel and customers. Also, no
bank, though reimbursed for its mone
tary loss by its insurance carrier, wants
the stigma and adverse publicity that
accompany these crimes, nor the in
creased bond premiruns and renewal
difficulties.
There is no question that an alert
and informed bank fraternity is the first
line of defense against bank robbers.
Therefore, keep your cash exposure at
a minimum and exercise all other
common-sense procedures to guard
against bank robberies. • •
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MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
35
This ad was sponsored by banks be
longing to First Arkansas Bankstock
Corp. (FABCO), headquartered in Lit
tle Rock. It explained Fed's creditrestraint program.
¥ x i.¥ ) u r C red it,
^our P resid en t’s N ew
A n ti-In fla tio n P ro g ram .
A Statement From T he FABCO Banks.
Bank Ads Focus
O n Credit Restraint,
Inflation Fight
T
H E an ti-in flatio n and cred itrestraint programs announced
March 14 by the President and Fed
have received a lot of publicity in
newspapers, magazines and on TV.
Yet, does the general public really
understand the mechanics of these
programs and what they’re supposed
to accomplish? Are some people so
confused they believe they can’t get
any more credit from banks or use their
credit cards? If they don’t know how
these programs work, how can they be
expected to support them?
To clarify the situation in the Little
Rock area, First Arkansas Bankstock
Corp (FABCO), a multi-bank HC, ran
an ad in local newspapers headed,
You. Your Credit. Your President’s
New Anti-Inflation Program.” It was
signed by the FABCO banks: Worthen
Bank, Little Rock; First National, Hot
Springs; First National, Mena, and
Stephens Security Bank.
In Tennessee, Ancorp Bancshares,
headquartered in Chattanooga, cre
ated an ad featuring an open letter to
the President of the U. S. and Con
gress for use by its member banks,
American National, Chattanooga, and
Hamilton Bank, Johnson City. This ad
pledged the banks’ support of the
Administration in trying to curb infla
tion, but asked the government to in
stitute spending cuts of its own this
year, not in 1981.
In their ad, the Ancorp banks in
Tennessee said,
‘It’s time for all of us to get together
and apply the brakes to inflation.
“The crushing burden of high prices
and ever-escalating inflation is nothing
less than a hidden tax on the American
people to support the government’s
uncurbed appetite for spending.
“It has long since ceased to be a
question of denying ourselves the com
forts accepted as part of the American
way of life. Moreover, it has become a
36
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
On March 14. 1980, President
Carter announced his anti-inflation
program, outlining five programs
aimedatcomingtogripswithinflation,
,
ofthesewasaneffort torestrict
smint and increased reseive requiremènes on the Snancal indusn,. Here
is a bnef look at each of these areas
The Special Credit Restraint
It means businesses and industries
must restrict andpostponetheirmajor
uses of credit
It meanscredit will be moreexpensive because more of each lending
institution'sfundswill haveto be held
additional reserves in the Feder
panies ai
Reserve Bank.
havetheprobcredit It also places a 15%reserve re- lem of meeting these newfederal
quirement against any expansion of credit restrictions while at the same
this type of credit after March 14.
rime dealing with the extremely diffiThis will necessitate the imposition cultlimitationsalreadyplacedonus
,. , ■ . , .
, ,
this phase of the financial industry.
Most directly, it will involve banks
W h a t lies ahead?
'Yho lssVe CTedit rards - «“* bank is
We areconfident thatthe un
mlS and re^btiom im ^ eSlJ1^ economy nowfacingall ofusw
In the meantime, each of us should
Additional Reserve Requirements carefully examine our uses of credit
with the Federal Reserve Bank:
This fight will testall Americans. Itwill
I his parr of the credit restraint pro be inthebest interestofthiscountryto
^ * ajmed at that sector of the
postpone the use of credit nowin
financial services industrywhich lends order to ensure a better future.
Bearing inflation is possible. But no
dusWa|
,
one act law, rule or regulation will
„¡„rf in ,* „ 1™
the
accomplishit Itwill takeallAmericans
general marker, markine those funds w
orkingtogether, exercisingtheir best
up and lending them to the major
judgement in order to accomplish
This programdirects banks to restrict their growth in total loans, while
at the samerimemaintainingareasonable availabilityof loan fundsforsmall
businesses, farmers, housing andagriculturally-oriented institutions.
It also directs banks to give special
This provision requires a 10%penalty reserve be held in the Federal
Reserve Bank by the larger financial
the current credit
institutions using these funds to lend situation and the future prospects of
to major credit users,
changes in these restrictive
p"
ictive policies
The °nly thing
n^predict with
W h a t J o es aU (his
announcement, the Federal Reserve
down to the country’s financial industrya programto implement thiscredit
restriction.
H o w w ill th e F e d era l
r>
j-,
,
R e serv e P r o g r a m b e
im p le m e n te d a n d h o w
w ill it affe ct ind ivid u als
an d businesses in
A rkan sas?
-r„
,
The Federal Reserve s programis
divided ir
&special
The Consumer Credit Restraint
Program:
The consumer credit restraint programisdesignedtoslowtheexpansion
of and restrict consumer credit of all
types Thisincludesnotonlybanksbut
" o t coiSSre a k lm m or
m e a n to F A B C O b a n k
metgetq retirement of corporatestock, cu s to m ers a n d th e
™-'"y loan which is of a speculanve . ,
,
A rk an sas e co n o m y ?
Quite mply, it
iscredit will be
verydayuse.
The FABCO Banks
Worthen Bank & Trust Company, N.A.Little Rock, Arkansas First National Bank in Mena, Mena, Arkansas
First National Bank of Hot Springs, Hot Springs, Arkansas
The Stephens Security Bank, Stephens, Arkansas
First Arkansas Bankstock Corporation
real challenge for the average family to
feed, clothe and shelter themselves.
“For our part, we applaud the intent
of the Administration’s effort to stem
the rising tide of inflation. Although we
are philosophically opposed to artificial
controls in a free-market economy, we
are cognizant of the present emergen
cy and intend to comply fully with the
recently announced Administration
and Federal Reserve proposals and
regulations, and in the truest spirit of
public trust. Our loan policy will re
flect a strict adherence to guidelines
based on needs versus wants.
“No customer of Hamilton Bank (or
A m erican N ational when the ad
appeared in Chattanooga) should feel
that his or her business will be jeopar
dized by an inability to borrow to se
cure inventory or meet other oper
ational requirements. What this policy
does mean, however, is that the bank’s
ability to deal in speculative and unse
cured lending will be severely re
duced.
“However —
“We have some fundamental and,
we feel, valid questions. Why are
proposed cuts in government spending
not being made now, instead of 1981?
How much of the Administration’s new
policy is talk in an election year and
how much deals with the immediate
problem?
“Some of the proposed measures can
be useful when uniformly applied, but
they still do not touch on the needed
basic elimination of the federal govern-
MjniMFDIC
To The
President
And
The Congress
Sri; Of The
United States;
sassfiâï
HAMILTON BA N K
o f J o h n s o n C ity , J o n e s b o ro & G r a y
E'RE WITH YOU
Open-letter-type ad implored Presi
dent and Congress to do their part in
fight against inflation by cutting gov
ernment spending now, not in 1981.
Ad was sponsored by Ancorp, C hatta
nooga, Tenn., and was run over signa
tures of American Nat'l, Chattanooga,
or Hamilton Bank, Johnson City, Tenn.
ment’s dangerous philosophy of con
tinued deficit spending.
“Inflation is a disease that threatens
not only the economic, but also the
social fabric of our society. It will take
the most p ersisten t and steadfast
efforts from each of us to bring it under
control. We can suggest, to our cus-
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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This wasn’t just unfair to data
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potential.
We recognized this docu
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And, for the times, our response
was considered nothing short of
revolutionary.
First, we made documentation
a major component of the system
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S econdly, we made documen
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tool. For example, our
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primarily for those in management
and operating positions. The Sys
tems Manual, on the other hand,
contains a complete description of
the computer programs involved.
Indeed , both will give an
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overall concept ol what the system
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tomers and the public at large, one
measure to help alleviate the overall
problem . Avoid incurring greater
additional debt for non-necessities and
work toward reducing those balances
now outstanding. Use your valuable
credit wisely, particularly credit cards.
By applying simple prudent judgment
and common sense, business and con
sumers can work together to find a
solution. The present situation is not
only critical; it presents a grave threat
to the American system and its future.
“We want to be a part of the solution
— not the problem, so we will make
every effort to adhere to these mea
sures. But we can’t do it alone; nor can
big government continually force a
public, already weary of ‘belt-tight
ening’ measures, into accepting a phi
losophy o f ‘pay more, get less.’
“When government learns to stop
looking for solutions in the taxpayer’s
wallet, and when the public stops look
ing to government for solutions to ev
ery problem, we’ll all be better off.
“An open, free-m arket economy
makes a lot more sense than one run by
unseen bureaucrats in Washington.
“It’s your move, Mr. President and
members of Congress . . . your oppor
tunity to put our money where your
mouth is!”
At the bottom of the ad, readers
were asked to “Speak out! Let your
elected representatives hear what you
have to say.”
Chauncey W. Lever, president of
Hamilton Bank, reports that he has re
ceived no negative comments on the
ad. In fact, some area residents have
told Mr. Lever they clipped the ad and
sent it to their congressional repre
sentatives or to the President.
Perhaps newspaper readers in other
cities would respond the same way.
Any banker interested in running such
an ad may w rite eith er American
National, Chattanooga, or Hamilton
Bank, Johnson City, for a copy.
American National of Chattanooga,
lead bank of Ancorp, and its president,
John P. Wright, are not new at this
type of dialogue with the public. In
1978, after the Comptroller ruled that
all national banks had to display cus
tomer-complaint form in their lobbies,
Mr. Write decided to turn a potentially
negative situation into a positive one
by having his marketing department
design a consumer-response form to go
alongside the Com ptroller’s forms.
This form is a three-panel piece with
copy asking the customer to rate the
bank’s services and personnel on a po
lar scale of excellent to poor. The re
spondent also is asked to rank the
things he likes most and least about the
38
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
bank. Additional space is provided for
complaints, comments and sugges
tions. The form is addressed to Mr.
Wright, who reads each completed
one and then sends it to the marketing
department, which, after recording
the information, sends it to the bank
officer who can handle the customer’s
comment or question.
The FABCO banks’ ad in Arkansas
read, “On March 14, President Carter
announced his anti-inflation program,
outlining five programs aimed at com
ing to grips with inflation.
“One of these was an effort to restrict
the use of credit in all parts of the
economy. Following the President’s
announcement, the Federal Reserve
Board, through its chairman, handed
down to the country’s financial indus
try a program to implement this credit
restriction.”
Then there were some questions
and answers, as follows:
“Howwill the Federal Reserve pro
grambeimplementedandhowwill it
affect individuals and businesses in
Arkansas?
“The Federal Reserve’s program is
divided into three basic areas: special
credit restraint, consumer-credit re
straint and increased reserve require
ments on the financial industry. Here
is a brief look at each of these areas.
“The Special Credit-Restraint Pro
gram:
“This program directs banks to re
strict their growth in total loans, while
at the same time maintaining a reason
able availability of loan funds for small
businesses, farmers, housing and agri
culturally oriented institutions.
“It also directs banks to give special
attention to restraining the use of cred
it for corporate take-overs or mergers,
retirement of corporate stock or any
loan which is of a speculative nature.
“The Consumer-Credit-Restraint
Program:
“ The co n su m er-cred it-restra in t
program is designed to slow the expan
sion of and restrict consumer credit of
all types. This includes not only banks
but also retail outlets, credit card com
panies and any other institution that
makes available unsecured consumer
credit. It also places a 15% reserve
requirement against any expansion of
this type of credit after March 14.
“This will necessitate the imposition
of new policies aimed at controlling
this phase of the financial industry.
Most directly, it will involve banks that
issue credit cards — each bank is
directed to initiate its own restrictive
rules and regulations immediately.
“Additional Reserve Requirements
With the Federal Reserve Bank:
“This part oi the credit-restraint
program is aimed at that sector of the
financial-services industry which lends
money to major commercial and in
dustrial credit users. Banks are re
stricted in purchasing funds in the
general market, marking those funds
up and lending them to the major cred
it users.
“This provision requires a 10% pen
alty reserve be held in the Federal
Reserve Bank by the larger financial
institutions using these funds to lend to
major credit users.
“What does all this mean to FABCO
bank customers and the Arkansas
economy?
“Quite simply, it means credit will
be less available for average, everyday
use.
“It means businesses and industries
must restrict and postpone their major
uses of credit.
It means credit will be more expen
sive because more of each lending in
stitution’s funds will have to be held in
additional reserves in the Federal Re
serve Bank.
“And in Arkansas we have the prob
lem of meeting these new federal cred
it restrictions while at the same time
dealing with the extremely difficult
limitations already placed on us by our
antiquated state usury law.
“What lies ahead?
“We are confident that the uncertain
economy now facing all of us will pass.
In the meantime, each of us should
carefully examine our uses of credit.
This fight will test all Americans. It will
be in the best interest of this country to
postpone the use of credit now in order
to ensure a better future.
“Beating inflation is possible. But no
one act, law, rule or regulation will
accomplish it. It will take all Americans
working together, exe'rcising their best
judgment, in order to accomplish this
task.
“The FABCO banks are anxious to
counsel with you. We will advise you
as best we can on the current credit
situation and the future prospects of
changes in these restrictive policies.
The only thing we can predict with
certainty is that by working together
inflation can be beaten.”
According to Edward M. Penick,
chairman/CEO of FABCO and Worthen Bank, the bank has made available
copies of the ad to any business in the
community that would like to use it on
an employee bulletin board or in any
effort for the public to understand the
need for the program. • •
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The Fed's Credit-Restraint Program:
W h at D o Rural Bankers Think?
B
ANKERS generally are voicing
support of the anti-inflation and
credit-restraint programs announced
March 14 by the President and Fed,
but with some reservations. Although
bank customers want something done
about inflation and would like to sup
port the government’s efforts, many of
them are confused about the new pro
grams.
F o r in sta n ce , G ilb e rt E . C o le m a n ,
p re s id e n t o f th e $ 8 6 -m illio n S e c u rity
B a n k , M o u n t V e r n o n , 111., sa y s , “ W e
h a v e h a d little r e a c t i o n fro m o u r c u s
t o m e r s as a r e s u l t o f t h e F e d p r o g r a m .
I am sure they do not understand the
implication of it. It is a shame the Fed
has been and will continue to fight the
inflation problem alone when the Pres
ident and Congress could contribute to
the situation by limiting their spend
ing. We see little hope of this in an
election year.
“We feel the executive and legisla
tive branches of our federal govern
ment thoroughly misunderstand their
constituents’ attitudes at this time. We
feel the public is poised for a real
b u d g et-cu ttin g and co st-cu ttin g
approach. The President and legisla
tors still feel the way to get votes is to
continue to pour more money back
into their districts even though it has
caused and will cause inflationary
pressures and continuation of high in
terest rates.”
An officer of a $50-million Tennes
see bank comments, “Most (custom
ers) don’t understand, but are sick of
nothing being done about inflation that
helps.”
John V. Harding, president of the
$56-m illion First National, Dodge
City, Kan., says his customers “want to
support government in its efforts to
control inflation, but are not confident
they can continue their operations in a
high-rate environment. ”
Mr. Harding believes the F ed ’s
program will be effective because in
terest-rate levels are causing people to
liquidate debt and delay expansions.
He reports that his bank is not making
new loans and is restricting speculative
credit extensions. In the customer
area, he foresees reduced deposits and
consumer lending; businesses in his
community will experience a down
trend over the next few months; hous
ing will be extremely tight, and agri
culture will show a loss for the year.
For his own bank, Mr. Harding be
lieves there will be slow asset growth,
poorer credit quality and thus more
selective credit policies than in the
past.
He forecasts an extremely poor year
for his farmer/agribusiness customers,
with net losses from their operations
and increases in their term debt loads.
For small retailers, Mr. Harding
points out that they cannot afford to
borrow more money at prevalent high
rates. His bank will encourage them to
make continual reviews of their inven
tory levels and receivables.
Mr. Harding pledges that his bank
will try to comply with guidelines
issued by the Comptroller and Fed on
classification of installment debt. “We
won’t deceive anyone with incorrect
figures,” he adds.
“ We feel the executive and legislative branches
of our federal government thoroughly
misunderstand their constituents' attitudes
at this time. We feel the public is poised for
a real budget-cutting and cost-cutting approach. The
President and legislators still feel the way
to get votes is to continue to pour more money back
into their districts even though
it has caused and will cause inflationary
pressures and continuation
of high interest rates."
Cilbert E. Coleman, President
Security Bank & Trust Co., Mt. Vernon, III.
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. Coleman of Mount Vernon be
lieves the Fed program will have only
minor effect because loans for the
building trade, small businesses, auto
mobiles and agriculture are exempt,
and from his standpoint, this is a major
sector of the credit function.
His bank, he continues, always in
tends to comply with federal and state
regulations. He believes it won’t be
difficult in the case of the Fed’s creditrestrain t program b ecause, as he
pointed out above, most of his bank’s
loan activities are in the exempt areas.
In addition, since Security Bank’s loan
expansion has b een con sid erably
greater than the 6%-9% limitation set
by the Fed and because Mount Vernon
is in a strong growth area, he doesn t
believe his bank’s increase would be
subject to the 6%-9% guidelines.
Again, because of the types of loans
his bank makes, Mr. Coleman doesn’t
believe restrictions imposed in the
Fed’s program will have much effect
on his bank’s depositors or consumerloan customers or on the community or
the bank itself. In addition, he says,
interest rates have become so high
they already have curtailed much of
the lending.
Mr. Coleman says his bank will re
strict loans for speculative purposes
even though they may be strongly col
lateralized. He points out that banks
often have more difficulty during highinterest times because of rate fluctua
tion and resu ltin g narrow ing of
spreads.
The President has said agricultural
loans should be exempt from his guide
lines. Because of this and the fact that
high interest rates already were in
effect before March 14, says Mr. Cole
man, the new programs should not
affect farmers much. He adds that
some young farmers and some farmers
already in weak positions may not be
able to function in this environment.
His bank doesn’t intend to hire more
people to handle the reporting paper
work that will be necessary because of
the program. Mr. Coleman says some
of his present employees will be taken
away from oth er responsible and
necessary jobs. However, he says,
(C ontinued on page 63)
41
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MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Kissinger, N adler, Brinkley Head List
O f Speakers for Illinois Convention
Gunderson, Heller
Also W ill Appear
A
D IS T IN G U IS H E D lineup of
speakers is scheduled to appear
at the 89th annual Illinois Bankers
Association convention, to be held this
year from June 5-7 at Stouffer’s River
front Towers, St. Louis.
Heading the speakers’ list are Henry
Kissinger, former U. S. Secretary of
State; David Brinkley, news commen
tator; Paul S. Nadler and Walter W.
H eller, econom ists; F red erick H.
Schultz, Fed vice chairman; and Lee
Gunderson, ABA president-elect.
Messrs. Schultz, Heller and Gun
derson will speak at the first general
session on Friday, June 6; Messrs.
Brinkley and Kissinger will appear at
the second session on Saturday morn
ing, along with Daniel G. Sisler, pro
fessor of agricultural economics at Cor
nell University. Mr. Nadler will be the
banquet speaker on Saturday evening.
Mr. Schultz’ term as Fed vice chair
man began last year. He is a former
speaker of the Florida House of Repre
sentatives; was chairman, Citizens’
Committee on Education; has been
chairman, Florida Education Council,
and m em ber, National Council on
Educational Research.
He is a former president, Jackson
ville Chamber of Commerce, and a
trustee, Jacksonville University and
the Bolles School. He has received a
number of civic service awards, includ
ing the Louis Brownlow Prize given by
the American Association of Public Ad
ministration and the Council of State
Governments for writing during 1969
in the field of state government. He
was a Kennedy Fellow at the Harvard
University Institute of Politics in 1971.
He joined Barnett National, Jack
sonville, Fla., in 1956 and opened his
own investment service the following
year. At the time of his appointment to
the Fed, he was chairman, Barnett In
vestment Services, a subsidiary of Bar
nett Banks of Florida, and a director of
the HC.
Walter W. Heller is regent’s profes
sor of economics at the University of
Minnesota, which he joined in 1946.
He has served as consultant to the ex
ecutive office of the president and to
the congressional budget office. He
was chairman, President’s Council of
Econom ic Advisers, from 1961 to
1964. He is a director of National City
Bank, Minneapolis.
Mr. Gunderson’s banking career be
gan in 1952 in South Dakota. He
moved to Wisconsin in 1961 and joined
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
his p resen t in stitu tio n , Bank of
Osceola, as executive vice president/
CEO in 1966. He was elected presi
dent in 1976. He is a past president,
Wisconsin Bankers Association, and is
presently a member of the association’s
state legislative committee and a direc
tor of Wisconsin BankPAC.
From 1972-74 he served as ABA vice
Convention Calendar
Thursday, Ju n e 5
9:00 a.m.— Registration/Exhibits, South Exhibit Hall.
9.30 a.m.— Golf Tournament, Clinton Hills Country Club.
Noon
— Past Presidents, Treasurers and Wives Luncheon,
Chads Room.
3:00 p.m .— Council of Administration Meeting, Field Room.
6:00 p.m .— Mississippi Get-Together Reception, South Exhibit
Hall.
Friday, Ju n e 6
7:30 a.m .— Graduates of Schools of Banking of Illinois Club
Breakfast, Field Room.
8:00 a.m .— Exhibits/Registration, South Exhibit Hall.
8:45 a.m.— First General Session, Mississippi-Illinois Room.
Noon
— Lunch at the Fairgrounds for Spouses, Meramec
Room.
— Gateway Luncheon for Group, Federation Officers,
Missouri Room.
— Blue Ribbon Bankers 50-Year Club Luncheon, Lewis
& Clark Room.
2:00 p.m .— Workshops: NOW Accounts & Investments (Re
peated at 3:30 p.m.), Mississippi, Illinois Rooms.
Saturday, Ju n e 7
8:00 a.m.— Exhibits/Registration, South Exhibit Hall.
8:45 a.m.— Second General Session, Mississippi-Illinois Room.
Noon
— Lunch on the Midway, Missouri-Meramec Room.
2:00 p.m .— IBA Annual Meeting and Business Session, Mississippi-Illinois Room.
6:00 p.m .— General Reception, South Exhibit Hall.
7:00 p.m .— The Captain’s Table Banquet, Grand Ballroom. Danc
ing to Art Mooney Orchestra.
43
W H EN YO U
US,
W E R E TH IS CLO SE!
When you need your correspondent hanker from
First National Bank of Belleville, we’re there as
fast as you can pick up your phone and dia.1
(6 1 8 ) 234-0020. Jim Montgomery, Phil Ishell,
Jim Graham and our correspondent banking staff
are just that close!
Jim, Phil and Jim have many years experience in
providing correspondent banking services to
CORRESPONDENT RANKING
DEPARTMENT
(618) 234-0020
Digitized for
19FRASER
Publio Square, Belleville,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
bankers throughout Southern Illinois. They know
your needs and the people you serve. They know
how to make First National Bank of Belleville the
right correspondent bank for you. If you haven’t
already talked to one of our staff, give us a call.
We’re always that close - and when you need us,
that’s good to know.
F IR S T
N A T IO N A L
B A N K
OF
Illinois 62222
BELLEVILLE
Member FDIC
president for W isconsin and from
1972-77 as a member of the ABA’s
communications council, where he
served a term as chairman. Recently
he was a chairman of the ABA task
force on m em ber communications,
from 1975-77 he was on the ABA board
of directors and from 1975 to the pres
ent, has been a member of the govern
ment relations council.
Mr. Sisler has performed research in
econom ics in N epal, India, B an
gladesh, Pakistan, Malasia, Indonesia,
Iran, Kenya, Botswana and Mexico.
He is the author of three books, 33
reference articles and numerous staff
papers. His main areas of research in
clude domestic agricultural policy, in
ternational trade and U. S. agriculture
and the impact of new technology on
employment, nutrition and income in
developing countries.
He joined Cornell s faculty in 1960
and was a visiting professor at Yale’s
department of economics from 196970.
Mr. Brinkley has served as co
anchorm an of the “ N BC N ightly
News” since June, 1976, and is a veter
an of 36 years with the network’s news
staff. He is the recipient of every major
broadcasting award and has served as
anchorman for a series of special re
ports, including one titled “Henry Kis
singer: On the Record.
Mr. K issin ger served as U. S.
Secretary of State from 1973 to 1977.
After serving in the U. S. Army Coun
ter-Intelligence Corps in West Ger
many, he went to Harvard where he
was awarded a BA in 1950, an MA in
1952 and a PhD in 1954. He served on
the faculty of Harvard until becoming
assistant to the President for National
S ecu rity Affairs in 1969. He was
awarded the Nobel Peace Prize in 1973
for his efforts to bring about a peaceful
conclusion to the Vietnam War.
He is the author of seven books, in
cluding the current “The White House
Years,” which reflects on his views
from the history of politics to arms con
trol to Vietnam and the Middle East.
He presently serves as professor of
diplomacy, School of Foreign Service,
Georgetown University, Washington,
D. C.; as special consultant for world
affairs, NBC; and as chairman, interna
tional advisory com m ittee, Chase
Manhattan Bank, New York City.
Paul S. Nadler is professor of busi
ness administration, Rutgers Universi
ty, New Brunswick, N. J. He also
serves as a faculty member for the Sto
nier Graduate School of Banking. He
has been teaching since 1951 and con
siders himself to be an economist who
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Your m an on
our staff.
^ te s , John Staudt is on our staff, but his assigned
priority is to serve you. As head of our Financial
Institutions Department, John brings to his job more than
a depth of banking experience — he brings a concern to
see that Springfield Marine Bank not only hears but
heeds the needs of each of our correspondent banking
institutions. As the largest Illinois bank in deposits and
capital outside of Cook County, Marine Bank offers you
the leverage of a major full-service banking establishment
close to home. Many of our correspondent banks use us
as their main depository and find such products as our
cash-letter service an enormous
convenience.
John Staudt is your man on our
staff. You’ll see him often and also
find easy access to any of our top
management with whom you wish
to confer. No bank, no matter how
small, ever feels lost at Marine
Bank. John Staudt is banking his
career on that. John
may have already
called on you. Feel free
to call on him any time
at (217) 7 5 3 -6 0 2 4 .
Springfield
MARINE
BANK
1 East Old State Capitol Plaza
Springfield, Illinois 62701
Member Federal Deposit Insurance Corporation
45
cares about the banking industry and
its people.
He serves as the director of banking
schools for the Bell System and for
IBM and is a prolific writer of books
and articles for banking publications.
He is the originator and producer of
the “ Banker E x ecu tiv e Sem inar
Series” of monthly tape cassettes on
banking. • •
Gavin Weir to Preside
At III. Convention
Presiding at this year’s Illinois Bank
ers Association convention will be
Gavin Weir, chairman/president, Chi
cago City Bank, and IBA president for
the 1979-80 term.
Serving with Mr. Weir during the
term have been Jack D. Lemmerman,
president, National Bank, Monmouth
— IBA first vice p resid en t;
James A. Fitch, president, South Chi
cago Savings — IBA second vice pres
ident; and Charles N. Finson, presi
dent, National Bank, Monticello —
IBA treasurer.
Mr. W eir joined Pullman Bank,
Chicago, in 1950 and is a former presi
dent, County Bank, Blue Island. He
was an organizer and presently serves
as a director, First Suburban Bank,
Olympia Fields, and is president and
director of both Chicago City Bancorp,
and Chicago City Investment Co. He
joined his present bank as president/
CEO in 1970 and was named chairman
in 1977.
Mr. Lemmerman began his banking
career in 1947 with his present institu
tion. He attained officer status in 1953
and has been chairman/CEO since
1979. He is a former IBA treasurer and
is currently ABA vice president for Illi
nois. He is a graduate of the Illinois
Bankers School and has served as IBA
chairman for Illinois BankPAC.
Mr. Fitch entered banking in 1956
at his present bank. Three years later
he was promoted to officer status and
was named president in 1968. He has
served two terms as president, IBA
Group One. He presently serves on
the IBA’s executive committee, coun-
WEIR
46
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
LEMMERMAN
FITCH
FINSON
cil of administration and committee on
state legislation. He is chairman, com
mittee on federal legislation.
Mr. Finson joined his present bank
in 1957 as president. He is a past mem
ber of the IBA council of administra
tion, chairman of the IBA Agricultural
Lending School, chairman of the ABA
ag bankers division and a past presi
dent of the IBA agricultural division.
He is an instructor at the IBA Ag Lend
ing School and the Advanced Ag Lend
ing Clinic.
HARRIS
First National, Cicero, has elected
new board members. They are: John J.
Gleason, president, Gleason & Associ
ates, River Forest; Walter Daniels,
president, Walter Daniels Construc
tion Co., Inc., Park Ridge; and River
Forest residents, William T. Gatziolis,
president, Thos. J. Gatziolis & Co.,
In c.; John T. Flynn, a securities broker
on the Chicago Board of Trade, and
James A. Maddock, president, Maddock Mechanical Industries, Inc. In
addition, the bank named E. Rachel
Brooks personnel officer and Emil G.
Larsen Jr., assistant cashier.
Joan W erges has returned to Alsip
Bank as assistant vice president in
charge of the bookkeeping depart
ment. She was holding that post when
she left the bank in October, 1978.
F irst N ational, W innetka, has ap
pointed Steven J. Neudecker to vice
president/controller, James D. Kottmeyer to cashier, John E. deRivera to
BLISS
T o p -m an ag em en t ch anges w ere
announced at the 1980 annual meeting
of stockholders of Harris Bankcorp.,
Chicago. Stanley G. Harris Jr., chair
man of the HC and of Harris Trust,
Chicago, will take early retirem ent
June 30. Charles M. Bliss, president/
CEO of the bank and HC, will succeed
Mr. Harris as chairman of both July 1.
B. Kenneth West, executive vice president/head of the banking department
at the bank, will take Mr. Bliss’ place as
president of the bank and HC. Mr.
Harris will continue as a director of the
bank and HC. He is a grandson of Nor
man Wait Harris, who, in 1882, found
ed the in v estm en t banking firm ,
N. W. Harris & Co., predecessor of
the bank.
Died: Philip N. Peterson, 78, retired
president, First National, Rockford, in
April. He entered banking in 1923 in
Laurens, la., then served with the
Comptroller’s national bank liquida
tion division before jo in in g F irst
National in 1933. He became presi
dent in 1943 and retired in 1963.
WEST
assistant vice president and Dorothy
Marquardt to personal banking officer.
Stanley A. Latham and Colin C. John
ston have been named heads of divi
sions within the correspondent bank
ing group of the commercial banking
department at Chicago’s First Nation
al. Mr. Latham, a vice president, now
heads the east central division, cover
ing Illinois, Indiana and,Michigan. Mr.
Johnston, also a vice president, heads
the west central division, which in
cludes Kansas, Kentucky, Missouri,
Wisconsin, Iowa, Minnesota, Nebras
ka, Colorado, North and South Dako
ta, Wyoming and Montana.
JOHNSTON
LATHAM
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Two NEW Director Aids
INVESTMENT GUIDE
$ 2 2 . 0 0 per copy
CONTRACTS
W ith Bank Executives
$ 7 . 0 0 per copy
INVESTMENT GUIDE
Also presented: a bibliography of
recommended reading on the subject,
plus excerpts from the Comptroller's
manual on regulations and rulings in regard to bank investments. These interpretations (also valuable to state banks),
while available elsewhere, are placed together in this same volume for handy reference by the director as he peruses the
intricacies of bank investment policies,
tend for periods of five years and, because of this, contracts call for careful
In this 192-page manual, the author
construction.
discusses the merits of directors paying
This manual discusses the role of the
closer attention to the investment policies
bank board's Compensation Committee
of their bank.
in determining the nature of such conIt is normal, says the author, for
tracts. The author suggests strongly that
the board to more closely scrutinize loan
"performance" of the executive can and
transactions since these occur more
should be the key in rewarding the ex
frequently and represent the bank's
ecutive. Charts and worksheets are in
primary earning power.
cluded to help the committee arrive at a
Yet poorly thought out and executed
QU AN TITY PRICES
reasonable contract that includes fair and
investment policies often can place a
2-4 copies............................ $20.00 each equitable "perquisites” as motivating facbank's capital in jeopardy, particularly
5-7 copies............................ $19.00 each tors f or the bank executive.
when the bank is forced to liquidate in
8-10 copies............................ $18.00 each
The manual w ill help any board com
vestments during a period of rapidly ris
mittee
presently writing an executive coning interest rates. The alternative, of
r
n
M
T
D
A
r
'T
C
tract
or
'n reviewing existing contracts.
course, is to "ride o u t" such periods,
making few if any new loans in the com
In many banks, salaries, bonuses and
Q U AN TITY PRICES
munity.
fringe benefits of top executives (particu- 2-4 copies................................ $6.50 each
Should the board "in tru d e " upon the
larly those of the Chief Executive) are 5-7 copies................................ $6.25 each
management perogatives of the CEO in
covered by contract. Many contracts ex- 8-10 copies................................ $6.00 each
the administration of the investment
portfolio? Not at all, says the author.
However, a w ritten policy, carefully
THE BANK BOARD LETTER
structured around the bank's deposit
408 Olive St., St. Louis, Mo. 63102
structure and loan demand, can be com
forting during rising (or falling) interest
rates. This becomes increasingly evident,
says the author, when such a policy not
only is followed but is carefully "fine
tuned" as liqu id ity and investment yields
are related to economic swings.
As an aid to management and the
board in reviewing present investment
policies — and perhaps establishing more
formal guidelines — the author presents
numerous investment and portfolio man
agement policy statements presently in
use by recognized well-run banks.
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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Federal Reserve Bank of St. Louis
_____ copies, INVESTMENT GUIDE
_____ copies, CONTRACTS
TOTAL ENCLOSED
$_______________________
$_______________________
$ _______________________
Nam e________________________________T itle ___________________
Bank_________________________________________________________
Street_________________________________________________________
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(Please send check with order, In Missouri, add 4.6% tax)
47
M erc Panel Says Recession Is Here;
Fed's Credit Plan Could Be Effective
A
LTHOUGH the much-heralded
and delayed recession has be
gun, it will be relatively mild and won’t
affect some areas of the economy. This
is the consensus of a panel of econom
ists who appeared at M ercan tile
Trust’s 25th Correspondent Banking
Conference and Baseball Party in St.
Louis last month.
Panelists included John H. Blixen II
and Richard L. Johannesman, both
senior vice presidents at Mercantile
Trust, and Eugene A. Leonard, senior
vice president, Mercantile Bancorp.
John W. McClure, vice president and
head of M ercantile T rust’s central
group, served as moderator.
In commenting about the recession
that he predicted for 1979 at last year’s
conference, Mr. Leonard cited a re
surgence in money growth that cut the
1979 recession short.
Although the 1980 recession will be
modest, Mr. Blixen said, the delay in
its arrival has made prospects for a
deeper recession more likely. A de
cline in the GNP of less than 1% is
expected this year, with the current
quarter expected to be the first one in
which the decline will be registered.
Mr. Johannesman, in commenting
on the Fed’s credit-tightening actions,
said the Fed is on a tightrope that
could result in overkill. Yet he feels
Washington isn’t fighting inflation
hard enough; if inflation shows signs of
receding, Washington won’t keep up
the fight and the momentum might be
lost, he said.
He said interest rates may not have
peaked and the flight to quality invest
ments could be short-lived and result
in increased loan demand for banks. If
the dollar rate improves, he said, for
eigners will cash in their securities for
dollars, which could have an effect on
interest rates.
Mr. Leonard said he was impressed
with Fed Chairman Paul Volcker’s
leadership, but that the Fed ’s new
credit-tightening policy isn’t a good
one. It’s not Mr. Volcker’s plan, he
said, but one that came from the White
House. Mr. Volcker’s plan for a grad
ual slowing of the growth rate is
“meaningful restraint,” but an acceler
ated tightening policy could result in
less than a satisfying result.
Mr. Blixen said the Fed’s fiscal poli
cy program is “meaningless.” He said
the budget balancing “act” of the Car
ter Administration is only a tax in
crease. He added that the recession
has come at the worst time for Mr.
C arter because its effect will be
greatest at election time.
In response to a question inquiring if
it’s too early to tell if the Fed ’s program
will be effective, Mr. Leonard said the
credit-restraint program could work,
but, if success is achieved, it will be the
Fed’s earlier policy that is responsible,
not the new con trols, w hich he
branded as “cosmetic. The Fed might
Members of Mercantile economist panel fielded questions from bankers. From I.: Modera
tor John W. McClure, v.p. & central group head; Richard L. Johannesman, s.v.p., Mercan
tile Trust; Eugene A. Leonard, s.v.p., Mercantile Bancorp.; and John H. Blixen II, s.v.p.,
Mercantile Trust.
48
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Federal Reserve Bank of St. Louis
Donald E. Lasater (c.), ch./CEO, Mercantile
Bancorp. & Mercantile Trust, and Neal J.
Farrel (r.), pres., Mercantile Trust, present
plaque to Ralph N. Taake Jr., pres., First
Bank, Cairo, III., in commemoration of
more than 100-year correspondent rela
tionship between two banks. A number of
other banks were similarly honored.
W illiam E. Weigel (I.), e.v.p., First Nat'l,
Centralia, III., chats w ith James E. Brown,
pres., Mercantile Bancorp., during Mercan
tile Correspondent Banking Conference in
St. Louis last month. Mr. Brown served as
moderator of regulator panel.
succeed in spite of the new controls, he
added, but the same result would have
come about in time without them.
Mr. Blixen said the areas most
affected by the recession will be hous
ing and autos. The agricultural sector
has some problems that will continue,
he said, and durable goods will be
weak. He added that the productivity
growth of the economy is near zero and
only consumer spending could change
the situation.
On the other hand, he said, the big
gest growth sector now is energy. He
predicted unstoppable growth in this
area for the next five to 10 years. He
added that health care also will be a
strong area over the coming decade
and that pent-up demand for housing
will result in a strong resurgence of
that industry by 1982.
Mr. Johannesman predicted that the
prime rate will be down to 17% by the
end of the third quarter, and to 14% by
year-end. Mr. Leonard added that
once the prime starts down, it will con
tinue going down. Mr. Blixen said he
thought the prime would be at 11% by
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year-end.
Panelists agreed that there is a credit
crunch now, but that it’s nothing like
the crunch of 1973-74 because money
is available. It just costs too much.
There’s a lot of money in Eurodollars
and money-market CDs, which tends
to insulate the market somewhat from
a severe credit crunch.
Mr. Leonard predicted diminishing
demand for credit because corporate
treasurers will rethink their demands
and many won t exercise their commit
ments from lenders. He also sees a
significant disruption in the Fed funds
market caused by credit tightening.
That is creating a two-tier Fed funds
m arket that has resu lted in non
member Fed funds trading as “poor
sisters” to member Fed funds.
Mr. Blixen said he didn’t see a
bouyant market for precious metals,
but that such a market could develop.
He said anyone buying precious metals
is b etting on a disaster situation.
Marketable securities are better in
v estm en ts, esp ecially long -term
bonds, but only if held for the short
term. The typical bond rate drop dur
ing a recession is 25%, he said, and he
sees a strong possibility for this to hap
pen soon.
Mr. Leonard commented on the
effect of the consumer price index. It
doesn’t represent the economy as a
whole, he said, because it’s not proper
ly weighted. An increase in the price of
gasoline can distort it. Gasoline prices
and mortgage rates have succeeded in
distorting the index to the extent that it
appears the entire economy is out of
control, he said.
Mr. Blixen called for a move to de
bunk the certainty that inflation will be
double-digit for the foreseeable future.
“We have it because we expect it,” he
said.
Commenting on wage-price con
trols, Mr. Blixen said there’s a 40%50% chance they’ll be imposed this
year. He said controls would have a
beneficial effect for President Carter if
they were imposed after the political
conventions. He said controls would
work for from five to six months and
make the economic climate look better
at election time. He added that busi
ness should keep this possibility in
mind.
Mr. Johannesman cited the danger
of such controls. “When they go off,”
he said, “things could get out of hand
again due to pent-up demand for hous
ing.”
Mr. Leonard said wage and price
controls are popular with the public,
“but they don’t work.”
A poll of the bankers in the audience
Members of regulator panel are flanked by Mercantile Trust Pres. Neal J. Farrel (I.) and
Donald E. Lasater (r.), ch./CEO, Mercantile Bancorp, and Mercantile Trust. Panelists
included (from I.) Earl L. Manning, acting commissioner of finance, Missouri; W illiam C.
Harris, commissioner of banks & trust companies, Illinois; Joseph V. Prohaska, regional
FDIC dir.; and Harold E. Uthoff, s.v.p., St. Louis Fed.
revealed that most think controls will
not be applied this year.
On the topic of bank profits, Mr.
Blixen predicted lower earnings for
1980, but a substantial recovery could
occur in the long term. He cited the
fact that banking is a necessary service
that is desired and that customers are
willing to pay for.
Mr. Leonard said challenges to
banking will come from within the in
dustry. Structure changes and HC
changes will have an impact on indi
vidual banks.
Mr. Johannesm an said bankers
should give thought to restructuring
their balance sheets. Bankers will be
finding themselves with high-cost,
rate-sensitive money and they must
learn to cope with such situations.
During an afternoon panel featuring
federal and state regulators, Harold E.
Uthoff, senior vice president, St. Louis
Fed, said the Fed ’s credit-restraint
program will remain in effect for what
ever period is necessary to take infla
tion pressure down. He said the Fed is
serious about its program; that it wants
to see a return to a more stable rate of
growth in the loan area.
Mr. Uthoff advised bankers not to be
aggressive in m arketing NOW
accounts. He said these accounts will
increase the cost of money for banks, so
they shouldn’t try to be NOW-account
leaders, at least not until they learn the
costs involved.
Earl L. Manning, acting commis
sioner of finance for Missouri, cited
commercial loans as the source of the
largest loan losses in the state. Losses
typically occur when a bank that’s lo
cated in an agricultural area tries to
finance a new business in a town with
which bank personnel are not familiar.
If bankers are’t accustomed to inven
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
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Federal Reserve Bank of St. Louis
tory and accounts receivable loan pro
cedures, they’re not familiar with that
type of collateral and the collateral
usually isn’t properly inspected, he
said.
A buffet dinner included the recog
nition of Mack Aldrich, retired corre
spondent department head, for start
ing Mercantile Trust’s baseball parties
25 years ago. Mr. Aldrich was per
suaded to serenade the audience with
(C ontinued on page 63)
Farrell to Succeed Coerver
In Mercantile Bancorp. Post
FARRELL
ST. LOUIS — Neal J. Farrell will
becom e vice chairman, Mercantile
Bancorp., June 30. He will succeed
Harrison F. Coerver, who will retire
on that date after a 45-year career at
Mercantile.
Mr. Farrell will retain his post of
president of the HC’s lead bank, Mer
cantile Trust. James E. Brown will
continue as HC president with his cur
rent responsibilities for the corpora
tion’s 28 other affiliate banks.
Mr. Farrell joined Mercantile Trust
in December, 1978, going there from
New York City’s Chase Manhattan,
where he had spent 22 years.
51
Indiana Bankers Asked to Chart Courses
At Upcoming Convention in French Lick
Exotic Caribbean M o tif
W ill Transform H otel
Into M ock Cruise Ship
HART Your Course!’ is the
V_>i theme of this year’s Indiana
Bankers Association convention, to he
held June 10-12 at the French Lick
Springs Hotel.
The theme can be interpreted in
more ways than one, since it can apply
to charting the course of banks with the
aid of information gained from speak
ers at the convention’s business ses
sions, to the ability of the many golfers
tackling the hotel’s courses to avoid
sand traps and to finding the final con
vention banquet, which will be held on
a mock ocean liner anchored in the
hotel’s dining rooms.
The convention will actually start on
Monday, June 9, when the 50-Year
Club will host a reception and dinner
at the French Lick Springs Hotel.
Tuesday’s events won’t begin until
afternoon, when the IB A board will
meet. Registration will open at 3 p.m.
and the past presidents’ reception and
dinner will be held that evening.
The main ev en t will begin on
Wednesday with all-day registration, a
coffee for spouses, the first general
business session, a women’s singles
tennis tournament, separate lunch
eons for men and women, a men’s
scramble golf tournament and a men’s
singles tennis tournament — all during
the morning and noon hours! Later
events will include a special interest
session and the Wednesday evening
banquet, featuring the assistant oil
minister of Saudi Arabia as speaker.
Another full day will be on tap for
Thursday, beginning with a women’s
golf tournament, all-day registration, a
women’s putt putt contest and the
second general business session during
the morning.
A luncheon buffet and mixed dou
bles — men’s doubles tennis tourna
ment will be held at noon, with a
women’s bingo party in the afternoon.
Evening events will begin with a
land-lubbers reception, followed by a
Caribbean cruise banquet and enter
tainment.
All events will be held at the conven
tion hotel. • •
52
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Federal Reserve Bank of St. Louis
Convention Calendar
Monday, June 9
6:30 p.m .— 50-Year Club
Reception.
7:30 p.m .— 50-Year Club
Dinner.
Tuesday, June 10
2:30 p.m .— IBA Board of
Directors Meeting.
3:00 p.m .— Registration.
6:30 p.m .— Past Presidents’
Reception.
7:30 p.m .— Past Presidents’
Dinner.
Worthington to Preside
At Indiana Convention
F R E N C H L IC K — C. W ayne
W orthington, president/chairm an,
National City Bank, Evansville, will
preside at this year’s Indiana Bankers
Association convention. He heads the
roster of Ind.BA officers for 1979-80.
Wednesday, June 11
WORTHINGTON
8:30 a.m .— Spouses’ Coffee
9:00 a.m .— Registration.
— First General
Business Session.
10:00 a.m .— Women’s Singles
Tennis
Tournament.
Noon
— Men’s Luncheon.
— Women’s
Luncheon.
— Men’s Scramble
Golf Tournament.
— Men’s Singles Golf
Tournament.
2:00 p.m .— Special Interest
Session—
Marketing
Presentation.
7:00 p.m .— Banquet.
CRAVEN
Thursday, June 12
8:00 a.m .— Women’s Golf
Tournament.
9:00 a.m .— Registration.
9:30 a.m .— Women’s Putt Putt
Contest.
— Second General
Business Session.
Noon
— Luncheon Buffet.
— Tennis
Tournament.
2:00 p.m .— Women’s Bingo
Party.
6:00 p.m .— Land-Lubbers
Reception.
7:00 p.m .— Caribbean Cruise
Banquet,
Entertainment.
James P. Coleman has been named
vice president, St. Joseph Bank, South
Bend. Kenneth J. Sobczak was pro
moted to assistant vice president; D eb
orah M. Mann and Karen A. McGrew
advanced to assistant cashiers, and
David J. Butiste was named assistant
cashier/installment loan officer.
LAUE
Serving with him as top officers of
IBA are Vice President Robert C.
Laue, president, First Bank, Indianap
olis, and Treasurer Carlos E. Craven,
president, Farmers National, Shelbyville.
Mr. Worthington began his banking
career at National City Bank in 1941 as
a messenger. He attained officer status
in 1953 and moved up through various
titles until being elected chairman/
CEO in 1975. He is a past president of
Region Eight and is a graduate of the
graduate School of Banking at the Uni
versity of Wisconsin.
Mr. Laue entered banking in 1960
with his present bank. He was named
an assistant cashier in 1962 and presi
dent in 1975.
Mr. Craven has been in banking
since 1948, when he joined Farmers
National, Shelbyville. He was made an
assistant cashier in 1955 and president
in 1976.
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Hope, Mertes to Speak
At Indiana Convention
Boyd Heads Convention Program Committee
FREN CH LICK — ABA President
C. C. Hope Jr. and Louis Mertes, vice
president, Continental Bank, Chicago,
are among the speakers scheduled for
the Indiana Bankers Association con
vention June 10-12 at the Lrench Lick
Springs Hotel.
Mr. Hope is vice chairman, Lirst
Union National, Charlotte, N. C. His
topic hasn’t been announced, but Mr.
Mertes will speak on “Office of the
Future. Both will appear at the first
business session.
m er tes
hope
Also appearing at the first session
will be Steve Lalken, president, Deal
ing with Change, In c., whose topic will
be “And Now the 80s — Bankers in a
New E ra .”
The second business session will be
addressed by IBA President C. Wayne
W orthington, chairm an/president,
N ational C ity Bank, E v a n sv ille;
Ronald E. Useldinger, Fitness Motiva
tion Institute of America; and Charles
Haywood, University of Kentucky,
Lexington. Mr. Worthington will de
liver his president’s address; Mr. Useldinger’s topic will be “Fitness for the
Busy Executive ”; and Mr. Haywood
will present an economic report enti
tled “What’s Ahead for Banking.”
The second business session also will
feature a meeting of the Indiana mem
bers of the ABA, conducted by Mr.
Worthington, who is ABA state vice
president for Indiana. A member of the
ABA governing council will be elected.
A special bonus afternoon session
will be held on Wednesday, June 11,
by the IBA marketing committee.
LorenC. Sefton, a 45-year banker, has
been named chairman, Union Bank,
Greensburg. Robert O. Hall, formerly
executive vice president, succeeds
Mr. Sefton as president. Mr. Sefton
also is chairman, First Bank, Batesville. At one time, Mr. Hall headed the
Indiana division, American Fletcher
National, Indianapolis.
Thomas T. Boyd, chairman, LaPorte Bank, is chairman of the
Ind. BA convention program committee this year. Also serving on the
committee are the following bankers:
Paul G. Cooper, cashier, Otwell State; Thomas J. Finnerty, presi
dent, Terre Haute Savings; Jack L. Gaddis, executive vice president,
Security Bank, Elwood; William R. Irwin, president, Farmers Bank,
Frankfort; Paul Koressel, executive vice president, Citizens Nation
al, Tell City.
Others on the committee include Paul H. McGauley, president,
Bargersville State; William E. McWhirter, executive vice president,
Peoples Bank, Indianapolis; A. M. Price, president, First National,
Rochester; and Phillip Smith, chairman/president, First National,
Paoli.
Mrs. Robert (Zan) Hall, Greensburg, is chairman of the women’s
convention program. Serving with Mrs. Hall are Mrs. Stefan (Joan)
Anderson, Muncie; Mrs. Carlos (Margaret) Craven, Shelbyville;
Mrs. K en neth (Judy) D eckard, Fow ler; Mrs. Virgil (Gwen)
Frederick, Brazil; Mrs. Douglas (Jacque) Grant, Elkhart; Mrs. W en
dell (Nancy) Hoover, Indianapolis; Mrs. Robert (Laverne) Laue,
Indianapolis; Mrs. Robert (Gerry) Nelson, Indianapolis; and Mrs. C.
Wayne (Betty) Worthington, Evansville.
O il Minister, Steel Band
Featured at Banquets
FR EN C H LIC K — Two diverse
types of entertainment are scheduled
for the two banquets to be held during
the Indiana Bankers Association con
vention.
Wednesday evening’s affair will fea
ture Sheikh Iben ben Salaam, assistant
oil minister of Saudi Arabia. He is said
to be an expert on the current energy
crisis, international events and the
Arab countries. He was educated at
British and American universities.
Thursday’s event will begin with a
Land-Lubbers’ reception held on a
mock Caribbean island. Caribbean
party favors will be provided for every
one and informal dress will be favored.
The banquet will be held aboard the
pretend S. S. IBA, anchored in the
east and west dining rooms of the con
vention hotel.
Entertainment will be presented by
the 21st Century Steel Band from Trin
idad. Music will range from Handel’s
“Messiah” to show tunes.
Also on the nonbusiness agenda of
the convention will be a men’s golf
tournament on Wednesday and tennis
tou rnam ents on W ednesday and
Thursday.
A w om en’s program is set for
Wednesday and Thursday. The first
day of activity will include a coffee on
the front porch of the hotel, a women’s
singles tennis tournament and a lunch
eon featuring Dave Smith, Ball State
University, who will show film clips of
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
famous movies.
On Thursday, there will be a golf
tournament and putt putt contest fol
lowed by a luncheon with the men,
then a tennis tournament and a bingo
party.
IBA Officer Candidates
In addition to Robert C. Laue,
who is exp ected to su cceed
C. Wayne W orthington as IBA
president at the convention, two
candidates have been nominated
for IBA officer status.
They are Mark H. Caress, presi
dent, First National, Crawfordsville, candidate for IBA vice presi
dent, and Neal H. Carlson, presi
dent, F irst National, W arsaw,
candidate for IBA treasurer.
Mr. Caress has held his bank
post since 1965. He was formerly
an educator and school administra
tor, serving as superintendent of
community schools in Crawfordsville prior to his appointment as
president of First National. He has
served IBA as chairman of the
mortgage loan and EFTS commit
tee and a member of the student
loan committee.
Mr. Carlson started his banking
career in 1950 as cashier of Bank of
Wolcott. He joined First of War
saw in 1955 as cashier/assistant
trust officer, was elected vice president/trust officer in 1967 and presid ent/director in 1974. He is a
graduate of the Graduate School of
Banking at the University of Wis
consin.
53
D O N T HORSE
AROUND W ITH TRUST
eep your customers on the righttrailwith pension
and profit-sharing plans fromThird National.
Your customers depend on you to provide
In fact, the Frank Russell Survey show
them with the best financial services, includ ed that, in the management of pooled fixed
ing some you may not be ready to offer on
income accounts, the Trust Division of Third
your own. Corporate pension plans, for ex
National ranked fourth among 104 banks
ample —or profit- sharing. At Third National, across the nation. And we’re constantly look
we have the largest, most complete and
ing to add innovative new services, like the
most experienced Trust Department in the
Investment CDs we offer employee benefit
Md-South.
plans. We stay in the saddle, ready to go to
work through you for your customers. We
can help you keep their Trust. Call one of
our correspondent bankers today for
the whole bit. Our Tennessee WATS
is (800) 342-8360. In neighboring states,
dial (800) 251-8516.
54FRASER
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Federal Reserve Bank of St. Louis
THIRD
NATIONAL
BAN
L
a
In Nashville
Member FDIC
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Inflation, Banking Structure on Tap
For Tennessee Bankers' Convention
Gatlinburg
I
N FLA TIO N and the econom y,
banking structure in Tennessee
and a proposed statewide TV advertis
ing program for the banking industry
will be among the topics discussed at
the 90th annual convention of the Ten
nessee Bankers Association May 18-21
at the Sheraton Gatlinburg Hotel.
The program will include a host of
speakers, a major panel discussion and
a presentation by one of TBA s newest
committees.
In addition, a program of education
al and entertainm ent activities has
been scheduled, including the tradi
tional golf and tennis tournaments, a
spouses’ program, banquets and danc
ing.
The first meeting of the convention
will be a joint meeting of the state and
national bank divisions, set for the
morning of May 19. Speakers at the
session will include Tennessee Bank
ing Commissioner Tom Mottern; Har
lan Mathews, state treasurer; and Carl
Nielsen, Wichita State University.
The general business session will be
held on Tuesday, May 20, and will fea
ture TBA President George R. Taylor
delivering his presid ent’s address;
E. Gerald Corrigan, special assistant
to Fed Chairman Paul Volcker, and a
presentation by the TBA statewide
advertising committee on a proposed
statewide TV advertising campaign for
banking. Mr. Taylor is chairman/president, Merchants Bank, Cleveland.
Tuesday afternoon is the time for the
independent bankers division m eet
ing, conducted by J. D. Clinton, vice
president, Brow nsville Bank. The
meeting will feature a discussion on
banking structure in the state and a
film about the 50th anniversary year of
independent banking.
A bank structure panel is set for
Monday afternoon, at which members
of the TBA bank structure committee
will discuss the structure of bank and
financial institutions in Tennessee.
Possible areas of compromise in ex
panding bank structure across the state
and the issue of statewide branching
are expected to be discussed.
Banquets will be held on both Mon
day and Tuesday evenings. The Mon
day event will feature entertainment
by the University of Tennessee sin-
toBe Site of 90th Annual Me
Convention Program in Brief
Sheraton Hotel, Gatlinburg
Sunday, May 18
3:00 p.m .— Insurance Committee Meeting, LeConte C.
— Registration, Upper Lobby.
M onday, May 19
8:30 a.m.— Spouses’ Hospitality Center, Lower Lobby.
— Spouses’ Crafts Displays, Exhibition Hall.
9:00 a.m.— Registration, Upper Lobby.
9:30 a.m.— Joint Meeting, State and National Bank Divisions,
Sheraton 3, 4.
10:00 a.m .— Golf and Tennis, Knoxville.
11:30 a.m .— Spouses’ Brunch, Mountain View Hotel.
2:30 p.m .— Special Panel on Banking Structure, Sheraton 4.
6:30 p.m .— Reception, Lower Lobby.
7:30 p.m .— Banquet, Entertainment and Dance, Ballroom.
Tuesday, May 20
8:30 a.m.— Spouses’ Hospitality Center, Lower Lobby.
— Spouses’ Crafts Displays, Exhibition Hall.
9:00 a.m.— Registration, Upper Lobby.
9:15 a.m.— Spouses’ Program and Slide Show, Sheraton 1.
9:30 a.m.— General Business Session, Sheraton 3, 4.
11:30 a.m .— Convention-wide Luncheon, Sheraton 1, 2.
Noon
— Directors Meeting, Guyot A, B.
1:30 p.m .— Spouses’ Bridge Play, Guyot A, B.
2:30 p.m .— Independent Bankers Division Meeting, Sheraton
4.
5:30 p.m .— Photo Session for Officers, LeConte, C, D.
6:30 p.m .— Reception, Gatlinburg Civic Auditorium.
7:30 p.m .— Banquet and Entertainment, Gatlinburg Civic Au
ditorium.
W ednesday; May 21
7:30 a.m.— Fellowship Breakfast, Sheraton 1, 2.
gers, followed by dance music by the
“Odyssey,” a Nashville band.
Tuesday’s banquet will be preceded
by a reception at the Gatlinburg Civic
Auditorium. New officers will be in
stalled and entertainment will include
country music by Tom T. Hall.
A spouses’ program is planned for
Monday and Tuesday that will feature
a country ham brunch and a variety of
other activities, such as a crafts exhibi
tion, an educational program on Knox
ville’s Energy Expo ’82 and optional
tours to local entertainment places.
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
James H. McLain, senior vice
presi
dent, Merchants Bank, Cleveland, has
been elected to the board. He has been
with the bank since 1972. In other ac
tion, Scott Taylor was elected a vice
president and Charles Bain and Ed
ward Lawson were elected assistant
vice presidents.
Mimi Griffin has been
named branch
manager at the Union Avenue Branch
of City National, Memphis. She joined
the bank in 1974.
55
'Bobby' Taylor to Preside
At This Year's Convention
MILLER
TERRY
WEATHERFORD
WILSON
Structure Panel, Numerous Speakers
To Highlight Tennessee Convention
N
UM EROUS speakers are sched
uled to appear at the Tennessee
Bankers Association convention this
year, most of them from the financial
industry.
Seven Tennessee bankers will take
part in an update on the progress of a
special “structure” study made by the
TBA bank structure committee during
a panel discussion set for Monday, May
19. Participants will include Charles R.
Miller Jr., chairman, Citizens Bank,
Cookeville; Ronald Terry, chairman,
First Tennessee Bank, Memphis; Ben
S. Kimbrough, vice chairman, Com
merce Union, Nashville; Jack Weath
erford, chairman/president, Murfrees
boro Bank; John D. Clinton, presi
dent, Brownsville Bank; Virgil Moore
Jr ., president, F irst Farm ers, Co
lumbia; and Charles Wilson, presi
dent, Commercial Bank, Paris. Mr.
Miller is chairman of the bank struc
ture committee.
E. Gerald Corrigan will be the prin
cipal speaker at the convention busi
ness session on Tuesday, May 20. Mr.
Corrigan is special assistant to Fed
Chairman Paul Volcker and is current
ly on leave from the Federal Reserve
Bank of New York. He is credited as
being a major participant in the de
velopment of the Fed s new economic
restraint programs. Pie first joined his
bank in 1968 and was elected to officer
status in 1972, when he was named
senior economist and assistant secre-
MOTTERN
56FRASER
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Federal Reserve Bank of St. Louis
CORRIGAN
tary. From 1972 to 1977 he served in a
variety of positions, including secre
tary, advisor and vice president of both
the personnel function and the man
agem ent and resou rces planning
group. In 1979 he was assigned to open
market operations and Treasury issue
function and assumed responsibility
for special studies related to the secur
ities industry. He has served on tech
nical and management assistant pro
grams to the central banks of Iran and
Venezuela.
Three speakers are scheduled for
the jo in t m eeting of the state and
national bank divisions on Monday
morning, May 19.
Thomas C. Mottern, commissioner
of the Tennessee Department of Bank
ing, will discuss his department and
banking legislation in the 91st General
Assem bly; State Treasurer Harlan
Mathews is expected to discuss the op
erations of his office and the new
alternative method of securing state
deposits through the pooling of risks;
and Carl Nielsen, chairman, depart
ment of administration, Wichita State
U niversity, will address the topic
“Strategies for NOW accounts.”
Presiding at the joint meeting will
be John W. Andersen, national bank
division chairman, and Ed F. Bell,
state bank division chairman. Mr.
Andersen is president, First National
of Sullivan County, Kingsport, and
Mr. Bell is president, Bank of Loudon
County, Lenoir City.
Mr. Mottern joined Hamilton Bank,
Johnson City, in 1963 and advanced to
president/direetor in 1969. He began
his term as commissioner of banking in
1979. Mr. Mathews has been in state
government since 1950 and has served
as treasurer since 1974. Mr. Nielsen
teaches banking, finance and invest
ments at Wichita State. In 1977 he
completed “The Bottom Line Study
for Kansas Banks,” a major portion of
which deals with NOW accounts. • •
Presiding over this year’s conven
tion activities will be members of the
TBA executive committee for 1979-80
headed by P resid en t G eorge R.
Taylor, chairm an/president, M er
chants Bank, Cleveland. Assisting Mr.
Taylor will be incoming TBA President
James R. Fitzhugh, president, Bank of
Ripley; Chairman Andrew B. Ben
edict, senior chairman/First American
National, Nashville; First Vice Presi
dent Dan B. Andrews, president, First
National, Dickson; and Second Vice
President W. H. Swain, chairman,
First National, Oneida.
TAYLOR
FITZHUGH
SWAIN
GILLIAM
Mr. Taylor began his banking career
in the bookkeeping departm ent at
Merchants Bank in 1945. He has work
ed in every departm en t and was
elected president in 1970 and chair
man in 1975. He has served as a direc
tor of Third National Corp. since 1974
and is a former member of the indus
trial development board and a former
commissioner for Cleveland.
Mr. Fitzhugh joined his bank in
1946. A former mayor of Ripley, he has
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
served on the board of the Memphis
Branch of the St. Louis Fed. He has
been president of his bank since 1974.
Mr. Benedict entered banking in
1923 at the then-American National,
Nashville, now First American Nation
al. He was elected an assistant cashier
in 1941 and has held his present title —
senior chairman of both the bank and
its HC, First Amtenn Corp. — since
last October.
Mr. Andrews has been in banking
since 1966, when he joined his present
bank as president.
Mr. Swain joined his bank as presi
dent in 1959. He has held the title of
chairman since 1973.
Serving the TBA for 18 years as ex
ecutive vice president and treasurer is
Robert M. Gilliam. He joined TBA in
1959 as secretary-treasurer. He has
served two terms as president, South
ern Conference of Banking Association
Executives, an organization serving 15
southern states. He also has served as
national chairman of the ABA s state
banker association division.
World Bank Official Visits
Ambassador and Mrs. Timothy Thahane
(c.) from Republic of Lesotho, Africa, recent
ly w ere hosted in N a sh ville by Third
National v-ch. John E. Southwood (r.). At I.
is Joe Matsu, investment promotion m ana
ger, Lesotho Nat'l Development Corp. Mr.
Thahane is new secretary to World Bank,
representing 18 African nations.
respondent bank group in addition to
his former duties as head of the region
al credit and administration area. The
two divisions have been consolidated
into a correspondent/regional group. A
reorganization of the commercial divi
sion has resulted in C. Richard Bobo,
executive vice president, being named
chairman, asset/liability policy com
mittee; Alack S. Linebaugh, executive
vice president, being named head of
the commercial banking group; and
Andrew G. Higgins, senior vice presi
dent, being placed in charge of the
corporate banking group. In other ac
tion, William F. Greenwood, vice
chairman, announced that he is taking
early retirement, with a date to be
announced later. He has been with
First American for 30 years.
Ronald R. (Ronny) Hawkins, vice
president, has been named head of the
correspondent bank division at Nation
al Bank of Commerce, Memphis. He
has been with the bank since 1974 and
had been an assistant vice president in
the correspondent department.
Miller F. Cheek, executive vice presi
dent, First American National, Nash
ville, has been named head of the cor
HAWKINS
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What Every Director
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CORPORATE ETHICS
$23 per copy
O V E R 2 0 0 Pages
Society as a whole is demanding more
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licly.
The disclosure policy of a board can
be a major factor in the public's judgment
of a bank's conduct. The fact that a bank
is willing to discuss — or make public —
actions that have a significant bearing on
ethical considerations w ill encourage high
standards of ethical conduct on the part
of the bank's entire staff.
It should be the responsibility of EV
ERY BANK DIRECTOR to aid in devel
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too often, however, directors lament:
"We want to do the right thing but we
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This manual w ill enable directors
to probe the "grey" areas of business
conduct so they can establish written
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This manual contains several complete
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57
The space race is on.
Introducing One Hancock Plaza, a bold new
business complex in the heart of downtown
Gulfport's Harbor Square. Doors open
in 1980.
Office space in our tower affords
commanding views of the Gulf of Mexico
and her sandy coastline from high above the
ground. Ground floor retail suites offer high
ONE
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density traffic in an enclosed setting of
gardens and fountains.
But perhaps the most remarkable thing
about this dynamic new business community
is that premium space is now pre-leasing
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You need to know about One Hancock Plaza
today, while space exists. Because once the
space is gone, it's gone. And then you'll
always wonder why you ever settled for less.
Write for our brochure with full
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In Gulfport.
For complete information, call George Schloegel at 601/896-2694
or write: Hancock Bank, P. O. Box 4019, Gulfport, M S 39501
58
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
Gunderson, Janew ay, G overnor W inter
To Speak at Mississippi Convention
Party-Laden Program Begins May 17 in Biloxi
A
BA P R E SID E N T -E L E C T Lee E.
G u n d erson, econ om ist E lio t
Janeway and Mississippi Governor
William F. W inter will be the principal
speakers at the 92nd annual Mississip
pi Bankers Association convention,
May 17-20, in Biloxi. Messrs. Gunder
son and Janeway will appear at the con
vention’s business session on May 19,
and Governor W inter will speak at the
banquet that same evening.
Convention activities will begin on
Saturday, May 17, with an 8 a.m. ten
nis tournament on the courts of the
convention’s headquarters hotels, the
Hilton and Broadwater Beach.
The MBA golf tournament will start
at noon that same day on the Broadwa
ter Beach Hotel’s Sun Course.
Convention registration will take
place in the lobb y of the H ilton
throughout the day.
The first bank-sponsored party will
begin at noon and continue through 4
p.m. It’s billed as a welcoming party
and will be held in the Hilton’s Board
walk Cafe.
A Yellowbird Party will begin the
ev en in g ’s a ctiv ities in the H ilton
Grand Ballroom, beginning at 6:30
p.m. A second party will begin at 9:30
in the Hilton’s Grand Casino.
Sunday’s activities will begin with a
milk punch party for graduates of the
School of Banking of the South at 7:30
a.m. in the Broadwater Imperial Lob
by. At 8 a.m ., breakfast for the gradu
ates will be held in the Broadwater
Vogue Room.
The convention registration desk
dent’s report, followed by a treasurer’s
report by Douglas A. Herring. Young
Bankers Section President H. Greg
Taylor, vice president, Peoples Bank,
Indianola, will report on YBS activi
ties'.
Farrell F. Berryhill, chairman/president, First National, Pontotoc, will
present a report on Mississippi BankPAC, and state and federal legislative
reports will be given by Robert E.
WINTER
JANEWAY
Kennington II, chairman, Grenada
Bank, and J. Herman Hines, director,
will open at 9 a.m. and remain open Deposit Guaranty National, Jackson. A
report of the MBA’s C EO summer
throughout the day.
A devotional service will be held seminar committee will be given by
from 9:30-10 a.m. in the Broadwater’s Don F. Calfee, MBA vice president.
Following presentation of certifi
Crown Room.
Tennis tournament finals are set to cates to new members of the 40-Year
begin at noon on the Broadwater s and 50-Year clubs, Mr. Gunderson will
address the convention. He’s presicourts.
A wine and cheese tasting party is dent/CEO, Bank of Osceola, Wis.
Ted Borodofsky, chairman, Planters
set for 3-5 p.m. in the Hilton Ballroom,
and an event on the Broadwater’s gar Bank, Ruleville, will preside at the
meeting of Mississippi members of the
den lawn called a “Gulf Coast Gala
ABA, at which elections will be held
will begin at 6 p.m.
Past MBA presidents will gather in for members of the ABA’s governing
the Broadwater Vogue Room at 8 p.m. council.
A necrology report and resolutions
for their annual dinner with members
of the MBA executive committee, and committee report will be followed by
a night cap reception will be held from Mr. Janeway’s address. The business
10 p.m. to midnight in the Hilton session will conclude with nomination
and election of new officers.
Grand Ballroom.
Concurrent with the business ses
Monday will be serious business
day, at least in the morning. The sion will be a women’s breakfast and
general business session will be held program in the Broadwater Crown
from 8:30-11 a.m. in the H ilton’s Room. Presenting the program will be
Grand Casino with MBA President Toni Beck of the Greenhouse in Dal
las, Tex.
Paul M cM ullan presid ing. Mr.
The day’s first party will begin at 11
McMullan will lead off with his presi
S p ecia lizin g in
MISSISSIPPI AND SOUTHERN M UNICIPAL BONDS
and
Industrial Revenue, Hospital Revenue, and
Leased Housing Revenue Bonds
lH O R N ,/lL V IS , H Æ L C H , IN C .
INVESTMENT SECURITIES
JO H N THORN
Suite 1726 C apital Tower* — P.O. Box 806— Jackson, Mississippi 39205
(601) 969-9200
L O N N IE W E L C H
JAM ES H . ALVIS
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
59
a.m. in the Hilton Grand Ballroom. It’s
to be called a “Love Boat Party.”
The annual oyster bar event will b e
gin at 4 and continue until 6 in the
Broadwater’s Vogue Room.
Evening activities will begin at 6:30
when the MBA social hour begins at
the M ississippi Coast C onvention
Center. It will be followed by the
annual president’s banquet, called this
year “Paul’s Seaside Soiree. ” After the
tables are cleared, Governor Winter
will speak and winners of the golf and
ten n is tou rnam ents will be an
nounced. New officers will be intro
duced and installed before entertain
ment by a group called Transition is
presented.
Tuesday’s events will be brief: a
country ham breakfast in the Hilton
Grand Ballroom and a breakfast for ex-
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Municipal Bonds
Hattier, Sanford
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INV E ST ME NT BANKERS
Whitney Building, New Orleans, La. 70130
(504) 525-4171
ecutive committee members in the
Broadwater Crown Room A.
A convention is only as successful as
the chairmen of the various commit
tees. Co-chairing the tennis tourna
ment this year will be J. W. Collins,
president, Bank of Mississippi, Tupe
lo, and L. Y. Foote Jr., president, Hat
tiesburg Division, First Mississippi
National. H. G. Breland, president,
State Bank, Collins, will be chairman
of the golf tournament. Mrs. C. W.
M cM ullan, Calfee, Herring Lead MBA
The Mississippi Bankers Association
has been under the leadership of three
bankers for the 1979-80 year. They are:
p resid en t — Paul W. M cM ullan,
chairman, First Mississippi National,
Hattiesburg; vice president — Don F.
Calfee, executive vice president, First
Mississippi National, Jackson; and
treasu rer — Douglas A. H erring,
chairman, Security State, Starkville.
Mr. McMullan was elected presi
dent, Newton County Bank, Newton,
in 1958 and served in that capacity un
til 1965 when he joined First National,
Hattiesburg, as president. In 1969,
F irst National m erged with F irst
National, Biloxi, and the institution’s
new name became First Mississippi
National. He was elected chairman in
1974.
Mr. Calfee entered banking in 1939
at F irst National, Hattiesburg. He
moved to Rankin County Bank as ex
ecutive vice president in 1962 and adv
anced to president before resigning in
1979 to assume his present position
with First Mississippi National’s Jack-
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son Office.
Mr. Herring has been in banking
since 1956, when he became affiliated
with F irst N ational, Jackson. He
joined Security State, Starkville, in
1963 as executive vice president and
was named chairman/CEO in 1978.
THE OPPORTUNITY
CANTON, MISSISSIPPI
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Federal Reserve Bank of St. Louis
CALFEE
WE WELCOME
EXCHANGE
B A N K
Connell Jr. (he’s chairman/president,
Bank of Clarksdale) will chair the
women’s committee and O. B. Bowen
J r ., president, Richton Bank, will chair
the resolutions committee.
Members of the executive commit
tee slated to retire this year include
A. S. Ballard Jr., president, Hernando
Bank; Jam es R. C ole, p resid en t,
American Bank, Vicksburg; and W. B.
Tate Jr ., president, M erchants &
Farmers, Macon. • •
To Go With Picnic,
Open-Air Pops Concert
Hosted by Miss. Bank
A free performance of the Jackson
Symphony Orchestra was sponsored
by the Bank of McComb, Miss., in
conjunction with a fall picnic.
Concertgoers were invited to bring a
picnic lunch or to buy one at the park,
with proceeds going to the McComb
Recreation Department. More than
1,000 persons attended.
Also, the concert — produced in
conjunction with the Mississippi Arts
Commission and the Pike County Arts
Council — was broadcast over radio.
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
FOR CORPORATE F IN A N C IN G ...
call on the regional bank
that can do m ore for you
and your customers.
If you or your customers have a need for such
corporate financing services as the origination
and placement of Industrial Revenue Bonds or
Farmers Home Administration Business and
Industry Loans or other long-term corporate
financing, the expertise of our Corporate Financing
Specialists — Frank Fillingim and Alan Walters — is
available to you...direct from them or through our
Correspondent Bank Department. To get some
thing started, contact Frank or Alan or the
Correspondent Bank Officer serving your area.
(left to right) Harry Lambdin, Regional Correspondent Bank
Officer; Frank Fillingim and Alan Walters, Assistant Vice
Presidents, Deposit Guaranty's Investment Division.
Investment Division
601/354-8269
Correspondent Bank Department
601/354-8076
DEPOSIT GUARANTY
NATIONAL BANK Member F.D.I.C.
Main Office — Jackson, Mississippi 39205
Grow with Us
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
61
N ew M e x ico Bankers to M eet June 5 - 7
'Make Waves for the '80s' to Be Theme
IV \ AKE WAVES for the ’80s” is
1VX
the th em e of the 69th
annual New Mexico Bankers Associa
tion convention, set for June 5-7 at the
Hilton Inn, Albuquerque.
The advance program has three
events scheduled for the evening
hours of June 4: pre-registration, cock
tails and the past presidents’ dinner,
which will feature entertainment by
Zan Bunch, ventriloquist.
Thursday’s activities will begin with
golf tournaments for men and women.
The men will tee off at 8 a.m. at Four
Hills Country Club while the women
will begin at 8:30 a. m. at the Albuquer
que Country Club.
Registration will resume at 9 a.m.
and continue throughout the day.
Evening activities will center around a
cocktail party that will begin at 6 p.m.
A full schedule of events is set for
Friday, Ju n e 6, beginning with a
prayer breakfast at 7:45 a.m. featuring
Congressman Harold Runnels. The
first general business session will begin
at 10 a.m. and will feature three speak
ers: Congressman Les AuCoin of Ore
gon, Governor Bruce King and Albu
querque Mayor David Rusk.
Two luncheons will be held at noon
— the women’s will feature The Com
pany musical group and the men’s
p re sid en t’s luncheon will feature
Chuck Clausen, defensive coach for
the Philadelphia Eagles.
After lunch, the men will be invited
to participate in a tennis tournament at
the Albuquerque Tennis Complex
while the women will play bridge start
ing at 2 p.m.
Evening activities will begin with a
cocktail party from 5:30 to 7:30 p.m .,
followed by an international night buf
fet dinner with entertainm ent and
dancing.
Saturday’s events will begin with a
buffet breakfast at 7:15 a.m.
The second business session will
start at 9 a.m. and will feature Lee
Gunderson, ABA president-elect, and
president/CEO, Bank of Osceola, Wis.
Luncheon will be preceded by a recep
tion. Luncheon speaker will be Regin
ald Avery, president, Barclay’s Bank,
London.
The convention will adjourn at 2
p.m. and the executive council will
meet at 2:30 p.m. • •
62
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Four Politicians to Speak to NMBA
Four political figures will be speak
ing to the New Mexico Bankers Asso
ciation convention. They are Harold
Runnels and Les AuCoin, both U. S.
congressmen, Governor Bruce King
and Albuquerque Mayor David Rusk.
Mr. Runnels is a native of Dallas and
became active in New Mexico politics
in 1960 when he was elected a state
senator from Lea County. He served
for 10 years. He was first elected to
Congress from the Second District in
1970. He ran unopposed in 1978. His
com m ittee assignm ents include
Armed Services and Interior and Insu
lar Affairs.
Convention Program
(Tentative)
Thursday, June 4.
8:00 a.m .— Registration.
— Men’s GolfTournament.
8:30 a.m .— Continental Break
fast for Women’s
Golf Tournament.
9:00 a.m .— Women’s Golf
Tournament.
Noon
— Past Presidents’
Luncheon.
6:00 p.m .— Reception.
Friday, J u n e 5 .
7:45 a.m .— Prayer Breakfast.
8:00 a.m .— Women’s Tennis
Tournament.
10:00 a.m .— First General Ses
sion .
Noon
— Women’s Lunch
eon.
— President’s Lunch
eon.
— Men’s Tennis
Tournament.
2:00 p.m.— Women’s Bridge
Tournament.
6:00 p.m .— Reception.
7:00 p.m .— Buffet Supper,
Dancing, Enter
tainment.
AuCOIN
RUNNELS
Mr. AuCoin represents the First
Congressional District in Oregon. A
newspaperman, he entered politics in
1971, serving as a state representative.
He was elected to Congress in 1975
and serves on the Banking, Finance
and Urban Affairs and M erch an t
Marine and Fisheries committees.
Governor King has been in public
service since 1954, when he was
elected to the Santa Fe County Com
mission. In 1959 he was elected to the
New Mexico House of Representa
tives, where he served five consecu
tive terms, three of them as speaker.
He was first elected governor in 1970,
serving until 1974. He was returned to
the governor’s office in 1978 for a
second term.
Prior to being elected mayor of
Albuquerque in 1977, Mr. Rusk was
the state representative from District
19. He was appointed to fill a vacant
seat in 1975 and was elected to a
second term in 1976. He was the
associate director of the Urban League
in Washington, D. C., from 1963-68
and was with the Labor Department
from 1968 to 1973. He is a native of
California.
7.
7:15 a.m .— Buffet Breakfast.
9:00 a.m .— Second General
Session.
11:30 a.m .— Reception.
12:15 p.m .— Luncheon.
2:00 p.m .— Adjournment.
2:30 p.m.— Executive Council
Meeting.
Saturday, J u n e
k in g
rusk
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
N ew M exico BA Officers — 1979-80
Rural Bankers
(C ontinued fr o m page 41)
WILBANKS
NUNN
ATER
Leading the New Mexico Bankers Association as top officers for the 1979-80 term are
Kenneth O. Wilbanks, pres., First Nat'l, Farmington — NMBA pres.; Jonathan R. Nunn,
pres., Citizens Bank, Tucumcari — pres.-elect; and David Ater, pres., First Nat'l, Santa Fe
— treas. Mr. Wilbanks entered banking in 1946 at First N at'l, Holdenville, Okla. He joined
First of Farmington as pres./CEO in 1967. Mr. Nunn joined Bank of Las Vegas in 1960 and
moved to his present bank in 1964 as e.v.p. He received his present title in 1965. Mr. Ater
joined First Nat'l, Santa Fe, in 1970 and was made an officer in 1971. He has been
pres./CEO since 1978.
Santa Fe National has
elected Frank
Sandstrom and Herman N. Wisenteiner to its board. Mr. Sandstrom is a
consultant and Mr. W isenteiner is
head of a petroleum marketing firm.
First City National, Carlsbad, a new
bank, has receiv ed p relim in ary
approval from the Comptroller of the
Currency. The bank will operate out of
temporary quarters until a permanent
building is constructed. Organizers in
clude Reed H. Chittim, Stanley E.
Newman and Jim Hobbs, associated
with First National of Lea County; Jack
Daniels, investor; and M ikeTinley, in
surance executive, all of Hobbs.
WilliamA. Cookhas been named vice
president/cashier, Security National,
Roswell. He formerly was the bank’s
auditor.
JamesA. Clark, a past president of the
New Mexico Bankers Association, has
b een nam ed p resid en t, Am erican
Bank of Commerce, Albuquerque. He
joined the bank in January as chair
man. He succeeds Gary McPherson,
who resigned in March.
Jo Megchelsen has been
promoted to
assistant trust officer at First National
of Lea County, Hobbs. She joined the
bank about a year ago.
SamT. Sugghas been elected senior
vice president, First National, Ros
well. He has been in banking since
1941 and is former chairman, Fidelity
National, Albuquerque.
Mercantile
(C ontinued fr o m page 51)
his rendition of “Take Me Out to the
Ball Game.”
The final event on the day-long
program was the C ard in al-P h iladelphia Phillies ball game at Busch
M em orial Stadium. Most bankers
were pleased with the score: 7-2 in
favor of the Cardinals. • •
Baseball Party always includes rundown
on current situation w ith St. Louis Cardi
nals given by Jack Buck, "voice of the Car
dinals." Mr. Buck predicted that the 1980
baseball season w ill be canceled if players
strike later this month.
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
since compliance with these regula
tions will not be difficult for his bank,
he doesn ’t expect his staff to spend a lot
of tim e checking the bank’s com
pliance.
“We always have been a small retail
er’s bank,’’ says Mr. Coleman. “Many
of our clients are small retailers who
need our help. We will continue to try
to service them. However, there will
be some situations where the need for
credit is not justified, and the request
will not be a bankable loan. These
times will squeeze out some of the bor
derline operators.
“We do not intend to reclassify or
place a ceiling on any of our loan exten
sions. We feel a majority of our loan
requests come from areas specifically
exempt from the guidelines. We feel
further that the high interest rates will
curtail our loan expansion and that we
will not need to set up any special
limitations.’
The banker in Tennessee does not
believe the Fed’s program will work,
but simply will create more paperwork
(he expects to have to hire more em
ployees to do it) and will place a tighter
squeeze than ever on small businesses.
Because of the program, he says his
bank will hold consumer credit to “0”
growth.
He foresees these effects on the fol
lowing segments of his community: for
depositors and consumer-loan custom
ers, it will decrease them or hold them
at present levels; for businesses, it
could adversely affect tourism and
small-business sales; for the commu
nity itself, it could adversely affect
growth, especially new housing, as an
indirect result; and for his own bank, it
could decrease loan demand, and ex
pansion probably will reduce the rate
of overall growth.
In the agribusiness area, the banker
foresees the net result as an increase in
a farmer’s cost of doing business.
The banker says he will advise his
retail-business customers not to over
stock inventory if it is being financed
through current borrowings. His bank
is not reclassifying installment debt
and will continue to make personal,
unsecured loans — the purpose of
these loans being listed as “household
goods” — but only in limited amounts.
63
N ew s
About Banks and Bankers
Kansas
Missouri
New Bank Commissioner Post
Filled by Frank Allen
H. E. Carlisle, senior vice president,
East Side Bank, Wichita, has been
given the additional post of board
secretary. Newly elected directors are
Jack Braly, B eech Aircraft C orp.,
Wichita, and David L. Murfin, drilling
manager, Murfin Drilling Co.
JACKSON — Frank C. Allen has
been appointed commissioner of the
new department of banking and con
sumer finance. The office was estab
lished last month by the Mississippi
legislature. It replaced the former de
partment of bank supervision.
Marion National recently combined
the grand opening of its new building
with cele b ra tio n of its 75th an
niversary.
John W. Hartmann has joined
Tope
ka’s First National as assistant vice
president/trust officer. He formerly
was with Metropolitan Life Insurance
Co., Topeka. The bank also elected
David N. Bunker trust real estate offic
er, MarkS. Ritter assistant trust officer
and David E. Bricker assistant trust
investment officer.
Highland Bancshares, Inc. Topeka,
has become a bank holding company
through acquisition of Highland Park
Bank, Topeka.
Mississippi
BenFosterhas been named by Central
Bank, Birmingham, to service the
bank’s correspondent accounts in Mis
sissippi. He replaces Harold Living
ston, who has moved to the bank’s loan
division. Mr. Foster, a native of Pren
tiss and graduate of the University of
Mississippi/Oxford, is in his second
year at Central Bank.
Mr. Allen began his banking career
at Georgetown Bank in 1931 while in
high school. He jo in e d D ep osit
Guaranty, Jackson, in 1934, but re
turned to Georgetown Bank in 1937 as
cashier/director. He served as a state
bank examiner in 1942 and also in
1946, following military service.
In 1947 he joined Brookhaven Bank
as cashier/director and in 1949 he
joined Lawrence County Bank as president/director. That bank merged with
Deposit Guaranty National in 1966 and
Mr. Allen then was named president,
Monticello Branch, chairman, Monticello/Newhebron advisory board and
advisory board member for both D e
posit Guaranty National and Deposit
Guaranty Corp.
He gave up active management of
the Monticello Branch in 1973, but
continued as president until he re
signed in 1978. He continued his board
work until he resigned to accept the
commissioner’s position.
Bennett B. Quillen has been elected
vice president in charge of data proces
sing, Boatmen s National, St. Louis.
He has a background in banking, con
sulting and systems design. In other
action, the bank elected John W. Boyle
to its board. He recently was named
chairman, May Departm ent Stores
Co., St. Louis. Boatmen’s also has re
ceived approval of its application to
open an office in the historic Laclede’s
Landing area on the St. Louis river
front. It will be located in a building
listed on the National Register of His
toric places.
Larry Bayliss, vice president, Boat
men’s National, St. Louis, has been
appointed to the Bank Marketing Asso
ciation’s national chapter council, rep
resenting the Midwest region.
QUILLEN
BAYLISS
Sally A. Nolan has been named bank
ing officer, M ercan tile Tru st, St.
Louis. She recently joined the central
group, where she is responsible for
correspondent bank operations. She
formerly was a branch manager at a
major New York City bank. Also at
Mercantile, the following assistant vice
presidents were named: George D.
makes banking more profitable fo r you!
MIKE O'LEARY
CNB
COMMERCIAL
NATIONAL
BANK
MAX DICKERSON
6th and Minnesota Ave. • Kansas City, Kansas 66101 »Member F.D.I.C.
64
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
around money the finest is ST
1
2
3
4
5 O L D S T Y L E C O IN W R A P P E R
A U T O M A T I C C O IN W R A P P E R
Basic coin w ra p p e r in extra s tro n g k ra ft stock. P rinted in 6
A m o u n ts and d e n o m in a tio n s a u to m a tic a lly in d ic a te d by
d iffe re n t stan dard colors to d if f e r e n t ia t e de n o m in a tio n s.
p a tente d “ re d bordered w in d o w s ” . A m o u n ts in w indow s
T r ip le d e s ig n a tio n th r o u g h colors, p r in t in g and lette rs.
alw ays in re g is te r. . . e lim in a te s m istakes. A ccom m odates
Tapered edges.
a ll coins fro m l c to $1.00.
6 K W A R T E T C O IN W R A P P E R
T U B U L A R C O IN W R A P P E R
W raps 4 de n o m in a tio n s in h a lf size packages. A m in ia tu re o f
E specially designed fo r m a chine fillin g . . . a real tim e-saver.
th e po p u la r ‘ A uto m a tic W rap per ' . . . 25c in pennies, $1.00 in
Packed fla t. In s ta n t patented “ Pop O pe n” action w ith fin g e r
nickels, $2.50 in dim es, $5.00 in qu arte rs.
tip pressure. D eno m ina tions id e n tifie d by color cod in g . . . 6
d iffe re n t standard colors.
7 F E D E R A L BIL L S T R A P
Package con tents clearly id e n tifie d on faces and edges by
R A IN B O W C O IN W R A P P E R
co lo r coded panels w ith in ve rte d and reverse figures. Made
C olor coded fo r quick, easy id e n tific a tio n . Red fo r pennies . . .
o f extra s tro n g stock to assure unbroken deliveries. Only pure
blu e fo r nickels . . . green fo r dim e s . . . to ind ica te q u a n tity
d e xtrine g u m m in g used.
and d e n o m in a tio n s . . . e lim in a te s m istakes. Tapered edges.
8 C O L O R E D BIL L S T R A P
D U Z I T A L L C O IN W R A P P E R
E ntire stra p is color coded to id e n tify de no m in a tio n . P rinted
Extra w ide . . . extra strong. Designed fo r areas w here halves
a m o u n t appears on to p and b o ttom o f package. Extra w ide
are w rapped in $20.00 packs . . . “ red bordered w in d o w ” fo r
fo
r m a rking and stam ping. Extra stro n g stock fo r safe delivery
ease o f id e n tific a tio n . A ccom m odates $20.00 in dollars, $20.00
and storage. Pure dextrine gu m m in g .
in halves. Tapered edges.
9 BA N D IN G S T R A P S
Ideal fo r packing currency, d e posit ticke ts, checks, e t c . . . . do n o t break
or de te rio ra te w ith age. Size 10 x % inches and m ade o f s tro n g brow n
K ra ft stock w ith gum m ed end fo r ease o f sealing. Packed 1000 to a carton.
SEE
Y OUR
D E A L E R
THE C. L. D O W N E Y C O M P A N Y
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OR
•
S E N D
FOR
FREE
S A M P L E S
HA IN NI B A L , M I S S O U R I
•
DEPT. MC
65
Texas
HOWARD
NOLAN
Horn, Robert J. Kiehm, James M. Alli
son Jr., Gerald J. Lammers, Roy T.
Blair, Lawrence V. Ritter and William
L. Colem an. Claudia B etz ler was
appointed an assistant trust officer.
L. Dean How ard, who is in First
National of Kansas City’s correspon
dent division and calls on Missouri
banks, has been promoted from assist
ant vice president to vice president.
Larry D. Thompson advanced from
assistant cashier to assistant vice presi
dent. Glenn R. Hamilton was made
assistant trust officer. In other action,
the bank elected Michael G. Fitt to its
board. He is president, ERC Corp.
William K. Carson and Michael D.
Flier have been promoted to vice pres
idents in First National in St. Louis’
Turn your grain
drafts into
collected
CARSON
FLIER
correspondent banking department.
Timothy P. Markel was advanced to
assistant vice president, First Finan
cial Computing, and Len E. Meyer to
assistan t vice president/national
accounts. Mr. Carson, with the bank
since 1975, formerly was assistant vice
president. Mr. F lier went to First
National in 1957 and also had been
assistant vice president.
David H. Morey Dies
David H. M orey, 72,
r e t ir e d o ffic e r of
Boatmen's N a t'l, St.
Louis, died of a heart
attack M arch 3 0 . He
joined Boatmen's in
1 9 3 1 a n d h e ld a
v a rie ty of positions
b e fo re
b e c o m in g
pres./CEO in 1 9 6 4 ,
th e n ch. in 1 9 7 1 .
W hen he retired in
1 9 7 3 , he also w as
ch./CEO, Boatmen's Bancshares, Inc., St.
Louis-based m u lti-b a n k HC.
Fred L. Bollerer has been elected
senior vice president and manager,
long-range planning, First City Ban
corp., Houston. He was previously
with First City National, Houston. The
HC has elected five new directors, in
cluding Richard G. Merrill, Robert
Cizik, Thomas J. Feehan, George F.
Kirby and Richard L. O’Shields. All
the new directors except Mr. Merrill
are form er directors of First City
National. The bank has elected Nathan
M. Avery and John P. Diesel to its
board and O. Pendleton Thomas an
advisory director.
M ercantile N ational, D allas, has
elected Ralph M. Schafer a senior vice
president, Paul Aguilar and Rosalind
A. Smith vice presidents and Jerry D.
Fain , John T. Lott, James L. Shield
and Sten A. Williams assistant vice
presidents.
Thomas E. Stewart has been elected
senior vice president in the retail lend
ing division at First City National, El
Paso. Luis Flores Jr. and Steve Helbing have been elected vice president
and assistant vice president, respec
tively.
Ben E. Black has been elected presi
dent, Citizens National, Greenville.
He was formerly president, Red River
National, Clarksville.
•
Index to Advertisers
•
Oklahoma
Joe T. Gilliland, executive vice presi
dent, Oklahoma Bankers Association,
has been appointed adjunct professor
for finance for banking in the College of
Business Administration, University of
Oklahoma, beginning July 1. He will
begin teaching his first course in trust
banking in the fall. His involvement is
the first of several steps in establishing
a banking curriculum at the university.
AND TRUST C O M P A N Y
OF ENID
C a ll J o h n P a r ris h
(405) 233-3535
M ember, FDIC
66
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Accountline, Inc......................................................
American Bankers Association.............................
American Express Co. (Money Order D lv .)..........
American Express Co. (Travelers Cheques)
...................................................... 11, 13, 15,
Associates Commercial Corp..................................
BankAmerlca Corp..................................................
Bank Building Corp.................................................
Bank of America ..................................................
Boatmen's National Bank, St. Louis .................
Brick & Co., Palm Beach Gardens, Fla................
Canton (Miss.) Exchange Bank ...........................
Central National Bank, Enid, Okla........................
Citizens National Bank, Decatur, III.....................
Commerce Bank, Kansas City .............................
Commercial National Bank, Kansas City, Kan.
Deposit Guaranty National Bank, Jackson, Miss.
Docutel Corp............................................................
Downey Co., C. L....................................................
First National Bank, Belleville, III.........................
First National Bank, Mobile, Ala...........................
First National Bank, St. L o u is .............................
Florida Softwares Services, Inc.............................
Freeman Plastics ..................................................
Hancock Bank, Gulfport, Miss...............................
Hattler, Sanford & Reynolr, New Orleans ..........
Kanney Marketing Services, Nell .......................
Liberty Nat’l Bank & Tr. Co., Oklahoma City . . .
Madison Financial Corp..........................................
Manufacturers Hanover Trust Co., New York City
Memphis Bank & Trust Co.....................................
Mercantile Bancorp., St. Louis ...........................
Monteleone, The ..................................................
Mosler Safe Co........................................................
Sheshunoff & Co.....................................................
Springfield, III. Marine Bank, Springfield ..........
Third National Bank, Nashville ...........................
Thorn, Alvls, Welch, Inc.........................................
Whitney National Bank, New Orleans ................
27
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68
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9
MID-CONTINENT BANKER for May 1 5 , 1 9 8 0
T ry a
B a n kers 9
Bob Heifer
..
Boatmen’s Vice President Bob Heifer conferring with the Winfield Banking Company’s
Executive Vice President Randy Tayon and CashierJerry Tayon.
Overlines . . . Investments . . . P rocessing. . .
Stock Loans . . . Federal Funds (Money Desk)
Operations Assistance . . .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C orresp on d en t Banking Division
THE BOATMEN'S
NATIONAL BANK
O F ST LOUIS
314- 425-3600
Bart French. Senior Vice-President, First National Bank.
Head of the Correspondent Banking and Real Estate
Divisions. Born: St. Louis, Mo., 1932. Education: St. Louis
University, 1955. Member, President’s Council of St. Louis University
Recently reorganized the Correspondent Division to better meet
operational and credit needs of customers. “In today’s environment
it’s difficult for a bank to offer unique products or services for long.
What sets us apart is an in-depth knowledge of our customer’s
needs and a keen awareness of the importance of timely response.”
At Firstbank. First National Bank in St. Louis. Where Firstperson
performance means dedication to excellence in information
and results.
Firstperson.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Firstbank.
First National Bank
in St. Louis
A First Union Bank
510 Locust Street • St. Louis, Missouri 63101 • (314) 342-6967 • Member FDIC
@FedFRASER