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Vol. 9 No. 1 Des Moines, Iowa April 28,1980 “ A Tilt in the Interest Rates” y By HENRY KAUFM AN General Partner Salomon Brothers New York, New York N LIGHT of recent develop ments, it is now likely that money rates have reached their cyclical peaks and will decline irregularly. In the long-term bond market, the sus tained cyclical rise in yields has ended and is being replaced by a broad trading range within which yields may fluctuate between their March highs and somewhat below current levels. The fundamentals for a bond rally of cyclical proportions, however, are not yet in place. We are at the precipice of another econom ic recession. Consum er spending is being thwarted by the onslaught of inflation and a tighter credit policy and, after a consider able delay, new housing activity is contracting now in typical cyclical fashion. Only spending by business for inventory and plant and equip ment are the lingering supports for the economy. Business, however, cannot continue to ignore consumer weakness. It is as yet too early to quantify the magnitude and dur ation of the economic contraction. I -*r'N Government Policy Governmental policy cannot deal promptly with the economic con traction. Indeed, official policy pro nouncements accept the recession, and a reversal of official policy will be difficult to justify considering the continuing long-term threat of in flation. Monetary policy cannot soon open the credit valves enough to restart the economic engine for fear of fanning an already serious inflation. Only a new wave of inflat ionary expectations kindled by a de cisive easing in money policy can give this business expansion a last —but not lasting—gasp of life. HENRY KAUFMAN Money Market A significant easing in money rates right away is unlikely. Another large increase in money supply cannot be ruled out this month. Furthermore, foreign ex change rate considerations may limit the extent of any monetary easing. More importantly, business short-term borrowings are much too strong. In the second half of the year, when short-term credit demand subsides, the prime loan rate may move below 15%, leaving the cyclical trough to be reached thereafter. Bond Market A somewhat different set of cir cumstances seems to prevail in the bond market. Key institutional in vestors are not capable of driving the market forward. Insurance com panies will not find instant relief from policy loans and slow corporate payments of pension contributions. Assuming the Fed perseveres with restraint, commercial banks will hardly be in a position to increase their investments in securities. The long bond market will also have to labor under two supply handicaps. One is the continued issuance of a large volume of long Governments. The other is the im minent need of corporations to fi nance long and to pay off short-term liabilities. For long interest rates to fall sharply, total net external financing by business must contract, and this tilt in business finance is still ahead of us. It is unlikely that new issue high-grade utility bond yields will decline below the 10V2% to 11% range in the coming bull market un less the long-term trend of inflation is turned, which is improbable. In the meantime, the preference for quality may intensify over the near term. □ CALL ON THE “PERFORMANCE TEA M ” where com m on transactions r* f are handled uncomm only well. i i u m n u i FIRST N A TIO N A L LINCO LN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. Iowa News The Talk of the Whole State— BIGGER AND BETTER THAN EVER! GROUP 3 ANNUAL MEETING. Surf Civic & Convention Center CLEAR LAKE Thursday, May 8 ★ LADIES LUNCHEON with Style Show ★ AFTERNOON ed Attractions SOCIAL HOUR with Gem ütlichkeit ★ SMORGASBORD BAN QUET ★ FLOOR SHOW Featuring Stage, & Recording to Nationally TV Stars ★ DANCING Known Orchestra Write for Special Registration Form and ' Complete Program to Group 3 Committee Citizens National Bank Charles City, Iowa 50616 O. J. Tomson, Chairman We Will Be Looking For You. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES MOINES: Funeral services for Milford N. Baird, 67, were held in mid-April. Mr. Baird retired from Bankers Trust Company as a senior vice president in 1978. He was a past president of the Iowa Mortgage Bankers Association. LYNNVILLE: Bryce Gause has joined the First State Bank here as executive vice president. He was formerly an assistant vice president and trust officer at Peoples Trust & Savings Bank, Indianola. MASON CITY: Calvin D. Hubregtse has been elected an agricultural loan officer, and Robert Sleep named a correspondent banking officer at the First National Bank here. BUSINESS MEETING with Extra Add ★ CEDAR RAPIDS: Jerry Trudo has been advanced to vice president at Merchants National Bank. He is in the correspondent department. Nebraska News The Nebraska Bankers Associ ation will sponsor a series of statewide workshops on customer relations and sales training for bank staff members in the coming weeks. Dates and locations include: May 12, Norfolk Holiday Inn; May 13, Omaha New Tower; May 14, Lin coln Hilton; May 15, Grand Island Ramada Inn; May 19, Kearney Ramada Inn; May 20, North Platte Holiday Inn; May 21, Deer Park Country Club, Valentine, and May 22, Scottsbluff Inn. Registration at each site begins at 4:30 p.m ., with cocktails at 5 p.m., dinner at 5:30 p.m. and program at 6:30. Staff members from Financial Shares Corp., a Chicago-based mar keting and training consulting firm, will conduct the seminars. The ob jective is to stress how the service concept is important in today’s banking environment and how mar keting, communications, sales and human behavior can profit the bank and its employes. GRAND ISLAND: Roger L. Kozisek has joined the First National Bank here as credit analyst to head the newly-created central credit de partment. He was formerly a national bank examiner with the Comptroller of the Currency. OM AHA: Mid City Bank has re ceived consent from the FDIC to open a detached tellers facility at 13483 W. Center Road here. Don't gam ble when choosing a correspondent bank. Come to the professionals. Central National Bank & Trust Company DES MOINES (515) 245-7111 MEMBER FDIC STEINAUER: Bob Gyhra and Charles Jasa are the new owners of The Bank of Steinauer. Mr. Jasa is president and Mr. Gyhra is vice president. John Steinauer, the former president, has been named chairman. United Mo. Lowers Prime R. Crosby Kemper, chairman of United Missouri Bancshares, Inc., Kansas City, announced that all United Missouri banks across the state lowered their prime lending rate to 19V2 % on April 17. United Missouri was one of the first major banks in the country and the first bank in the state to lower its prime a full one-half percent. B an k on a BANKERS’ BANKER C all 1-800-362-1688, toll-free in Iow a + Carleton D. Beh Co. -4 Supplement to Northwestern Banker Newsletter 4-28-80 Investment Ban ke rs/Fin ancia! Consultants NEW ISSUE SALE DATE 4/21/80 $1,300,000 CITY OF ENGLEWOOD, COLORADO (ARAPAHOE COUNTY) MOODY’S: A 1 General Obligation Water Bonds, Series 1980 Dated: June1,1980 Denomination: $5,000 Both principal and semiannual interest (June 1 and December 1, first coupon due December 1,1980) payable at the First National Bank of Englewood, Englewood, Colorado. IN THE OPINION OF COUNSEL INTEREST ON THESE BONDS IS EXEMPT FROM ALL PRESENT FEDERAL INCOME TAXES. MATURITIES 8.00% December 1,1981 December 1,1982 December 1,1983 December 1,1984 7.80% December 1,1985 6.60% December 1,1986* 6.70% 250,000 Decern b er1,1987* 6.75% 250,000 December 1,1988* 250,000 6.60 6.80% 260,000 December 1,1989* ‘ Optional in inverse numerical order beginning December 1, 1985 at 101.50%. $ 10,000 10,000 10,000 10,000 6.70 6.70 6.70 6.70 $250,000 6.65 6.70 6.75 6.80 LEGALITY TO BE APPROVED BY LAMM, EDSTROM & STOWE, ATTORNEYS, DENVER, COLORADO The City of Englewood, second largest city in Arapahoe County, is located immediately adjacent to and directly south of the City and County of Denver, the State Capital and population center of the State. The economy of the City is closely related to the economy of Metropolitan Denver and is the hub of the south suburban trade area with complete business and professional services. There are approx imately 2,000 business establishments in the City of Englewood at the present time, including four commercial banks with combined deposits in excess of $210,640,000. The City is in the center of a commercial, manufacturing and fabricating area that parallels the main line railroad right of way that extends south from Denver. Light industrial and fabricating plants in or near the City include General Iron works, Precision Tool, Air Control Products, Bingo King Company, Canada Dry Bottling Company and Lowdermilk Corporation. These bonds are being issued pursant to the Constitution of the State of Colorado for the purpose of paying the costs and expenses of extending and improving the municipal water system of the City. The debt service will be paid primarily from the net revenues of the water system. In the opinion of counsel, these bonds are also legal and binding general obligations of Englewood, Colorado, and all taxable property located therein is subject to the levy of sufficient taxes to pay the principal of and interest on the bonds without lim it as to rate or amount should the net revenues prove insufficient. FINANCIAL STATEMENT Actual value taxable property, 1979 Assessed value taxable property, 1979 $697,761,505 132,574,686 Direct debt, including this issue Net direct debt, excluding self-supporting Total direct, overlapping and underlying debt 7,910,000 -03,248,391 Population, 1980 estimate: 37,203 » Direct debt per capita: Net direct debt per capita: Total debt per capita: Tax collections have approximated 99.48% of taxes levied for the past six years. $212.62 -087.32 We own and offer subject to prior sale and change in price and subject to our attorney’s approving opinion: The information contained herein is not guaranteed, but isderived from sources we deem reliable and is that on which our purchase of these bonds was based. Offered subject to prior sale and change in price. 4r Des M oine s B uild in g • Des M oines, Iowa 50309 • 515-288-2152 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 607 M a rq u e tte Ave. • M in ne a p o lis, M in ne so ta 55402 • 612-332-8825 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Supplement to Northwestern Banker Newsletter 4-28-80 Meet GaryLivesay and get to know Centurion Life If you haven’t yet talked to Gary Livesay about Centurion Life, the credit insurance subsidiary of Dial Financial Corporation, you may not know enough about Centurion Life. District Sales Manager Centurion Life Insurance Company For instance . . . Centurion offers you: • A full line of credit insurance products • A fully computerized claim system • Complete excess program • Your choice of billing or direct remittance • Sales and product seminars In the credit insurance business since 1956, Centurion is licensed in 36 states and has nearly $1 billion of insurance in force. The A.M. Best Company rates Centurion A + (Excellent). Administrative offices are in Des Moines. For details, call Gary collect at 515/244-7050. Or write: Gary B. Livesay, Centurion Life Insurance Company, 207 Ninth Street, Des Moines, Iowa 50307. And if you’re attending Group Meetings, look for Gary. He welcomes the opportunity to visit with you. Dial Financial Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Centurion Life Insurance Company https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis f 1 ¡11 1Ü Ü 3 , ^ Call our ( f t ' JSMF Rne n L/cucii lip m r tu mi p t J p l D in iim ixJin n. J *- j For u p -to -th e -m in u te , accurate inform ation l & J 8Z 1 u C o m m e r c e B a n k Ifl Tony Paugoulatos of Kansas City Rusty Reese John Henderson Asst. V ic e P re s id e n t V ic e P re s id e n t Sales R e p re s e n ta tiv e 2 34 -2 64 7 2 34 -2 46 3 2 3 4 -2 6 7 4 I M e m b e r FDIC Minnesota News AITK IN : Three officers have been promoted at Security State Bank of Aitkin, Robert H . Hammond to vice president and cashier, Carol Carlson to auditor and Lorraine Malmgren to personal banking officer and time savings manager. LE ROY: First Noble Holding Co. has received consent from the Fed eral Reserve Bank of Minneapolis to become a bank holding company by acquiring the First National Bank of Le Roy. MINNEAPOLIS: Veteran legislat or and savings and loan trade execu tive Vernon S. Welch, 73, died April 11. He had served for 30 years as general counsel and executive vice president of the Savings League of Minnesota before retiring to Colora do in 1971. Mary Przytarski was promoted to personnel officer. CHICAGO: Patrick W . Dooley has been elected senior vice presidentloans at the Bank of Commerce & Industry. He was formerly a vice president. Ann Marie Baumann was named assistant cashier, and Susan M. Jensen was promoted to admin istrative assistant to the president. CHICAGO: Tsvaiter Financial Cor poration here has received consent from the Federal Reserve Board to become a bank holding company by acquiring the Garfield Ridge Trust and Savings Bank. W EST FRANKFORT: First Com munity Bank of West Frankfort has received permission from the FDIC to establish a facility at 603-607 W . Main St. here. with the Comptroller of the Curren cy to establish a new bank here. The proposed bank would be capitalized at $1 million. Montana News Montana Bankers Association Group Meetings will be held in the coming weeks as follows: May 2 — Group 6, War Bonnet Inn, Butte; May 3 —Group 7A, Riverside Coun try Club, Bozeman; May 5—Groups 2 and 7B, Crossroads Inn, Miles City; May 6—Group 4, Golden Wheel Night Club, Plenty wood; May 8 —Groups 5A and 5B, Y ogo Inn, Lewistown; May 9 —Group 1, Marias Valley Golf Club, Shelby, and May 10—Groups 3A and 3B, Outlaw Inn, Kalispell. Colorado News Illinois News CHICAGO: Funeral services were held last week for John F. Regan, 35, vice president at Lake View Trust & Savings Bank. Mr. Regan was formerly with LaSalle National Bank here. CHICAGO: John A. Michas has been elected senior vice president and cashier of Aetna Bank. He was formerly vice president and cashier. "Opportunity^ Knocks..." W DENVER: Mark L. Swanson has been named manager of the econom ic development department of United Banks of Colorado, Inc. He was formerly assistant director of property planning and manage ment. DENVER: Jerry C. Starks has been promoted to vice president in the operations division at Central Bank of Denver. Eileen S. Neill and Jerry W . Keel were promoted to the posi tion of assistant vice president. James S. Fallon was named a corre spondent banking officer. 'Y <%■- ■* Wyoming News CHEYENNE: W . Robert Dubois, chairman, and Herbert W . Read have retired from active service on the board of the First National Bank & Trust Co. of Wyoming here. Ber nard R. Weber, president, has been elected chairman succeeding Mr. Dubois. ASK DALE FROEHLICH to make MNB work for you. Toll free 1- 800- 332-5991 Merchants ^ National Bank 151 Member F.D.I.C. w https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TORRINGTON: Wyoming Bancorporation has filed an application A BANKS OF IOWA BANK 4 Purchase of Collections Used by bankers throughout the midwest Banking, Financial & Business Personnel Iowa and Nationwide Three years Installment experience ................$14,000 Cashier, BA and one year exp erien ce............ 15,000 CAPITAL PERSONNEL SERVICE Consumer Banker w ith large bank ................ 14,000 Farm Manager for large bank wants ag lending ........................................................... 16,000 Loan Officer with good operations experience ..................................................... 12,000 AVP & Trust Officer, has insurance lic e n s e s ............................... 18,000 714 Central National Bldg. 515-283-2545 Des Moines, Iowa 50309 Sale of Rare Coins Reliable and respected service for over 20 years PARTIAL LIST OF AVAILABLE APPLICANTS SERVING PROFESSIONALLY Estate Appraisals POSITION W ANTED If you are seeking aqualified officer for your bank, call Malcolm Freeland, president, Freeland Financial Service, Inc. at (515)244-8163. Experienced people are available from $20,000 to $40,000. Employer pays service fee.________________________________(PW) Ben E. Marlenee Coins 913 Locust Des Moines, Iowa 50309 515-243-8064 W ANT ADS BANKERS PARTICIPATING 20,000 Commercial credit and loan experience, large b a n k ............................................................ 17,500 23,000 25,000 President in $22MM bank, wants larger b a n k .................................... 30,000 R. L. “DICK” SELLON • P.D. “DUANE” DEVAULT President, stable background, varied experience ..................................... 35,000 AG BANKING CAREERS ALL FEES PAID BY MANAGEMENT I LeasePlan.Inc. 545 - 31st Street Des Moines, Iowa 50312 AG LENDING OFFICER. . .S E M inn. . . . $16-18,000 CREDIT SUPERVISOR. . . O h io ................$17-21,000 Used coin sorter. Lyon County State Bank, Rock Rapids, IA. Phone (712)472-2581.____________ (WTB) 23,000 AVP & Branch Manager, a generalist ............ ............ NORTHWESTERN BANKER 306-15th St., Des Moines, Iowa 50309 W ANTTOBUY 17,500 Trust Officer, small bank experience ............ VP with solid experience in all areas Rates 50 cents per word per insertion. Ad $2 for file numbers. Identity of file number advertisers cannot be revealed. Payment in advance, please. NCR late-mode! proof machine. Write Bank of Leigh, Leigh, NE68643. Or phone (402)487-2204.______ (FS) Three NCR proof machine encoders (Model #775), each w ith a four pocket module. Call Vern Wiggenhauserat (312)272-2000 for information.________ (FS) Burroughs TT-102 electronic on-line teller machines; 1-3 years old. $1950 each (original cost $3400). Call (214)757-7760._____________________________ (FS) Burroughs TR-102 electronic teller machines. Upgrad able to on-line; 2-3 years old. Guaranteed. Freight paid. $995 each (original cost $2100). Call (214) 757-7760.__________________________________(FS) NCR 152-70 teller machines. Completely recondition ed; 15 days free trial. Guaranteed. Freight paid. $775 each. Call (214)757-7760._____________________(FS) Four NCR 1550 electronic teller machines; 15 days free trial. Guaranteed. Freight paid. $945 each. Call (214)757-7760._____________________________ (FS) Thirteen NCR 152-70 teller machines; excellent condition. $595 each. Call (512)250-0794.__________ (FS) Five Burroughs T-100 encoders, $325 each; four Bur roughs T-1000 encoders, $495 each, and two Bur roughs T-1500 encoders, $595 each. Call (512) 250-0795.__________________________________(FS) Fifteen NCR 279-200 on-line teller machines less than one year old; on maintenance. $2050 each. Concentrators and couplers available. Call (512)258-7101. (FS) Heavy mortgage experience, V A /FH A / CONV ............................................................. VP/Real Estate Analyst fo r mortgage company ......................................................... AG LOAN REP. . . O h io ............................$25-30,000 COMMERCIAL. . .Iowa ....................... $20-25,000 FO RSALE Ag Lender, five years experience ..................$16,000 FOR FURTHER INFORMATION RESPOND IN CONFIDENCE TO: Bank Division ROBERT HALF LOAN OFFICER. . .Iowa ..........................$15-20,000 LOAN OFFICER. . . W. Iowa .................... $15-18,000 Since 1968, banks and other ag-related employers have been paying us to find the personnel they need. I-------------- ----- -----------------------------1 For more information, give Linda (our banking spec ialist) a call today. □ I would like to sell my majority bank stock. □ I would like to buy ma jority bank stock. BCirlC4REERS, INC. m j of Iowa, Inc. 317 6th Ave. Des Moines, IA 50309 (515) 244-4414 AGRICULTURAL PERSONNEL RECRUITERS (515)394-3145_____________ New Hampton, IA 50659 I Please Contact: J. Mason Henry I Charles E. Walters Co. , Inc. POSITION AVA ILABLE First Security Bank & Trust of Miles City (Mont.) has an immediate opening for an Installment loan officer. Experience preferred. Write Box 250, Miles City, Montana 59301.____________________________(PA) Cashier— Southeast Minnesota bank of $20 m illion is seeking aggressive individual experienced in operat ions, EDP, reports and lending. Excellent salary and benefits. Send resume to file KBD, c /o Northwestern Banker.___________________________________(PA) Ag Loan Offlcer/Office Manager— Immediate opening in southeast Iowa bank of $25 m illion; experience necessary. Send resume and background to Farmers & Merchants Savings Bank, LoneTree, IA 52755. (PA) INSURANCE AGENCY MANAGER— Person with in surance agency manager experience or experienced, fully licensed agent as manager fo r agency in west central Minnesota. Long established agency with potential for sound growth located in county seat town, good trade center. Good starting salary and fringe benefits with incentive program. Reply to file KBF, c /o Northwestern Banker.______________ (PA) Loan Officer with agricultural lending experience in $65 m illion bank near Iowa City. Contact John Hughes, President, H ills Bank and Trust Company, Hills, IA 52235; (319)679-2291.________________(PA) Electronic Terminal Insurance Policy I I P.O. Box 1313, Omaha, Nebraska68101 Phone: (402)553-6400 I I I____________________________________________________ I POSITIONS A V A IL A B L E OPERATIONS—#2 position in large Iowa bank. Major are of responsibility w ill be check processing and re lated departments. ............................................ 25,000 CORRESPONDENT BANKER— M ajor M inn esota bank seeks strong commercial lender to handle non ag overlines. No travel........................................ 30,000 BRANCH OFFICER— Metro Iowa location. Prefer con sumer loan and supervisory background.......... 20,000 INSTALMENT LOAN— Major midwestern bank needs second man for instalment department. Must have solid background In indirect financing............. 25,000 JUNIOR OFFICER— Large Minnesota bank w ill train individual with degree and 1-2 years general bank ex perience for correspondent position.................. 16-18K OPERATIONS— Management position in $60MM Minnesota bank. Prefer data processing background and in metro bank experience............................ 25,000 PRESIDENT— $75MM suburban Kansas bank. Degree and commercial loan experience in a large bank re quired...................................................................... Open CASHIER— Several openings in rural Iowa, Kansas, Nebraska and Minnesota banks. Insurance licenses helpful................................................................ 18-22K PRESIDENT— $8MM rural bank close to college com munity. Agri loan background required............ 26,000 1. 2. 3. 4. 5. Coverage Coverage Coverage Coverage Coverage failure to for the terminal for robbery of your customer for the bank money for interloper/spoofer losses for liability arising from transfer funds fiUTQmfiTEO SVSTEÍUS □F iGLUñjnC. 301 N. Ankeny Blvd., Suite 220 Ankeny, la 50021 515-964-1358 To inquire about a position please submit resume and salary history. TOM HAGAN & ASSOCIATES OF KANSAS CITY P.O. Box12346 / 2024Swift North Kansas City, Missouri 64116 ________________ (816)474-6874_______________ Vol. 9 No. 1 Northwestern Banker Newsletter [USPS 873-300] is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 25 cents per copy, $8.00 per year. Second class postage paid at Des Moines, Iowa. Address all mail subscriptions, changes of address [Form 3579], manuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis k
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