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'o « i ^ T > < i v U e ( u v Vol. 3 No. 52 Des Moines , lowa April 29, 1974 The Outlook for Agriculture for 1974 B y EDWIN B . L E W IS , V i c e P r e s . Commerce B a n k of K a n s a s C ity During the past year, the livestock industry has been faced with consumer boycotts, price freezes, trucker strikes, and now our Federal Government is going to purchase beef to bolster beef prices while consumer groups are threatening boycotts again. Let’s review the cattle picture for 1973. Consumption of both beef and pork was down approximately 7% from our record highs of 1972. Beef cow numbers increased 5%, the same as the total cattle population. Cattle on feed March 1, 1974, were down 4% from last year; our placements in feedlots have been down, but so has our marketing. Imports were up substantially in January, 1974, although 1973 imports were almost identical to 1972 for both beef and pork. I do not think the consumer will continue to eat beef at 1972 levels at a live price of over 50$ unless the chain stores and packers reduce their margins substantially. I feel the fat market on steers will be erratic but will average 42$ to 44$ through September. The last quarter of the year will show further weakness due to less consumption and the shorter feeding period that feeders are going to have to go to while grain prices are so high. I expect a 40$ to 42$ fat market during the last quarter of the year. Cow-calf operations will continue to be profitable this year, but prices will be con siderably lower than the 1973 levels. This will be due to the large increase in calf crop and the pressure resulting from the lower fat market. I believe that calf prices will not be above 50$ in October and November, 1974. U .S.D .A . inventory of hogs and pigs on March 1, 1974, was up 2% from a year ago. Our pork exports were up 61% in 1973; iü ¡ Grain producers, barring a major drought, should make exceptional profits. Net farm income for 1973 was a record $26.1 billion. Due to lower livestock prices, increased production costs, especially fer tilizer and petroleum products, and the reduction in Government payments, net farm income for 1974 will drop slightly below $20 billion. Although I have presented a rather bleak outlook for livestock operators, the prop erly managed operations will show a profit. Bill Approved To Eliminate Student Loans Needs Test however, Japan took 60% of our total pork exports, and it is doubtful that they will be able to import as much this year due to the energy crunch. Hog prices will also be erratic and average in the 33$ to 35$ range, unless we have a further build up in numbers, which is unlikely with our present corn prices. Only the efficient hog producer will make a profit this year. Our grain prices will continue to remain high. The world-wide demand and our record low carry-over of wheat and corn, even with our anticipated increased produc tion, tend to indicate this. I believe grain prices at harvest time will be as follows; Corn $2.00 per bushel Wheat $4.00 per bushel Soybeans $5.50 per bushel Milo $3.25 per hundred weight Legislation H R 12253 which eliminates the needs test under the Guaranteed Stu dent Loan Program for borrowers with ad justed family incomes of less that $15,000 who borrow no more than $2,000 in any academic year has been sent to the Presi dent by Congress. In effect, the Senate-House compromise means a request for a loan of $2,000 or less automtically entitles such student to in terest subsidies on any such loans made. Since no needs analysis is required, the educational institution does not make a recommendation to the lender. Students whose adjusted family incomes are $15,000 or more can qualify for interest subsidies on loans up to $2,500 per year but the educational institution must carry out a formal needs analysis and report on the (Turn to back page, please) For Full Correspondent Banking Service (F^ l W e're as near Jay Bordewick https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Howard Nielsen as your phone CALL i? l 536-2000 MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION u s National bank An Affiliate of Northwest Bancorporation OMAHA Des Moines’ Second Largest INDEPENDENT! Your INDEPENDENT Correspondent Bank with the PERSONAL TOUCH! Capital City Bank MAIN BANK: East Fifth and Locust Phone 515/244-5111 * Des Moines, Iowa 50309 Call “ Helpful Homer" W h e n you ch o o se a city co rresp o n d ent, d o w h a t o ver h a lf o f the b a n k s in Iow a d o — bank a t M NB. 151 Merchants National Bank A BANKS OF IOWA’ BANK Cedar Rapids, Iowa 52401 First Federal Savings & Loan Associa tion, Lincoln, Neb., has commitments from eight thrift institutions in Iowa and Nebraska to join its Transmatic Money Service plan, John E. Dean, general counsel for the $327.8 million-deposit institution, announced here Thursday. Mr. Dean added that litigation which has halted the T M S operation in two Hinky Dinky supermarkets in Lincoln “ has not really slowed us down, but has given us an opportunity to retrench.” Although two suits involving T M S are pending, Mr. Dean predicted that the program would be back in operation within two to three weeks, adding, “ It will be bigger and better than ever.” IOW A NEW S FO R T DODGE: Alan Forbes has joined the Union Trust and Savings Bank as head of the marketing department. The son of the late Gordon B. Forbes, who was with the bank for many years as trust officer and assistant cashier, Mr. Forbes comes from Webster City. À A M A R SH A LLTO W N : Rober Schmidt has joined the Fidelity Savings Bank staff as vice president in charge.of the bank’s south side office. He formerly served as manager of Ayrshire’s office of Brenton Banks. Terry Martin Assistant Vice President Transmatic To Expand Minneapolis, Minn., has been named ex ecutive vice president of First Trust and Savings Bank and will assume duties on May 1. He previously was president of Citizens S tate Bank in Montgom ery, Minn., and assistant vice president of Marquette National Bank in Minneapolis. Vista State Bank and will assume duties the first week in June, according to Paul Hentges, bank president. B E T T E N D O R F : John Pieler, former ex ecutive director of the Bettendorf Chamber of Commerce, has been appointed assistant vice president, marketing at the Security State Trust and Savings Bank. B R O O K L Y N : Controlling interest in the Poweshiek County Savings Bank has been sold to Gordon L. Wold, 45, by C. W. F o w le r, C . C . E ck lu n d and F loy d McAllister. Mr. Wold, formerly of Forest City, has been elected president, cashier and director, succeeding Mr. Fowler, who continues active as chairman. Mr. Ecklund will continue for the president as vice presi dent and director. Mr. McAllister has retired as cashier and director. D A V EN PO R T: Lome R. Newhouse of SAC C IT Y : New officers of the Sac Coun ty Banker’s Association have been elected. They are: president — Jack Horn, assistant vice president, Sac City State Bank; vice president — Don Kelley, vice president and cashier, Early Savings Bank; and secretarytreasurer — Frank Strain, assistant cashier, Sac City State Bank. S P E N C E R : John Rahn will jo in the Spencer National Bank late this spring as vice president. STO R M LA KE: George H. Schaller, ex ecutive vice president of the Citizens First National Bank, has been asked by the American Bankers Association to serve on the American Medical Association’s ad visory committee council on rural health. NEB R A SK A NEW S H A STIN G S: Stanley D. Wieland has been promoted to assistant cashier of the City National Bank, according to Lloyd R. A * -4.1 Y 'Y YT ir r Y 3 # ALTA V IST A : Jam es T. M arik, on the faculty of Upper Iowa College, Fayette, has been named assistant cashier of the Alta v- We’ll See You at the May Group Meetings v k ED LENAGHAN J0N GRINDLE Specializing in Property, Casualty and Fidelity Coverage for Iowa Banks. A A-4 ► JO H N RODGERS W ELCH Correspondent Banking Officer https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3L IOWA BANKERS INSURANCE & SERVICES, INC 630 Liberty Bldg. Des Moines, la. 50309 515 243-0179 Announce Program Highlights For Iowa Groups 6, 7, 8 , 4 Iowa bankers will hold four annual group meetings during the period extending from May 6 through May 9. A second series of annual group meetings will be held during the period extending from May 20 through May 23. Featured speaker during the first week will be Dr. Laurence H. Hall, British-American humorist from Perrysburg, Ohio. Topic of his address will be “The High Cost of Laughing.” Dr. Arthur Secord from Great Neck, New York, will appear at Group 12, 2, and 3 during the second week. Additional details on the second week of the group meet ings will be announced in the May 13 issue of the News letter. Group 6 will register at the Des Moines Golf and Country Club starting at 2 :0 0 P.M. on Monday, May 6. Chairman George Merriam, senior vice president, Dallas County State Bank, Adel, will preside. Dean Knudson, president, University Bank & Trust Company, Ames, is secretary. No formal business session is planned. Golf will be available starting at 9 :0 0 A.M. Luncheon service will be available. A reception starts at 5:30 P.M., and dinner will be held at 6 :3 0 P.M. The program starts at 8:00 P.M. Cost will be $17 per person or $32 per couple. Group 7 will meet at the Terrace Inn in Newton on Tuesday, May 7. Registration starts at 10:00 A.M. A Dutch-treat luncheon will be at noon. The formal busi ness meeting gets underway at 1:00 P.M. IBA President Richard Tool; IBA General Counsel Wendell Gibson; IBA Executive Secretary Neil Milner, and Superintendent of Banking Cecil Dunn will speak. A social hour will be held at 5:30 P.M., and the banquet will be at 6 :3 0 P.M. Don Erusha, chairman of Group 7 and executive vice president, Solon State Bank, will preside. Dr. Hall will speak following the banquet. Die ladies will be treated to a tour of the Maytag Dairy Farms or to the Maytag His torical Center. Golf will be available during the day. Registration will be $14 advance and $16 at the door. Group 8 will meet at Saint Ambrose College in Dav enport on Wednesday, May 8. Golf will be available at the Davenport Country Club starting at 8:00 A.M. Reser vations are required. Registration starts at 10:00 A.M. Louis L. Morf, chairman of Group 8 and vice president, Monticello State Bank, will open the formal business meeting at 3:30 P.M. President Tool, Superintendent Dunn, Neil Milner, and Wendell Gibson will speak. The social hour will be at 5:30 P.M. and the dinner will be at 6:30 P.M. Dr. Laurence Hall will speak following the dinner. Ken Paulsen and his band will play for dancing from 9:00 P.M. Johnson and Iowa county bankers are new to this group this year. Group 4 will meet at the Town House in Cedar Rapids on Thursday, May 9. Registration starts at 10:00 A.M. Luncheon will be held at noon. The formal meeting starts at 1:00 P.M. William Hummer, partner with Wayne Hum mer & Company, Chicago, will speak on the “Outlook for Bonds and Interest Rates.” A golf tourney will be held beginning at 2:00 P.M. at the Indian Creek Country Club in Marion. Evening festivities start with a social hour at poolside at the Town House Motor Inn. Dinner will follow at 7:00 P.M., and Dr. Hall will address the group on the “High Cost of Laughing.” BT & Company, a group from LinnMar High School, will entertain. Volney Palmer, chairman of Group 4, will preside. He is president, Citizens Savings Bank, Hawkeye. Linn County banks will serve as hosts. Registration is $16 advance and $18 at the door. Registration for evening only will be $12 and $14 respectively. The Word Is Out GROUP 4 MAY 9 CE DAR R A P I D S Come early and stay all day on Monday, May 6. T ee off time sta rts at 9 :0 0 A.M. a t Des Moines Golf & Country Club. You’ ll have a g reat time. Come for lunch at the Town House. P lay golf at Indian Creek, Marion. Meet the new members of Group 4. B e sure to p re-register early by contacting the Iowa Bankers A sso ciatio n today. Your hosts for this fine program: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Linn County Banks https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis •*~v > i .A :»4 A pV 4 *-4 Kitrell, bank president. Mr. Wieland joined the bank in January of 1974. OMAHA: Bruce D. Jones has been named a vice president of the First National Bank’s commercial loan department. He formerly was a vice president for Associates Financial Services ins. Co., Inc., in In dianapolis, Ind. OM AHA: Nick T. Newberry, president of the Woodmen of the World Life Insurance Society, has been elected to the board o f the Omaha National Corp. * ILLINOIS NEW S A T YY rr kV A A -A .» /'A -T -f CH ICAGO : A. Robert Abboud, 44, vice chairman of First Chicago Corp., parent of the First National Bank of Chicago, has been elected to the newly created post of deputy chairman of the institution. He will succeed Gaylord Freeman, 64, currently chairman of the bank and the holding com pany, when he retires in 1975. CH ICAGO : Colonial Bank & Trust Co. has named William E. Kamka vice presi dent and cashier. C H EBA N SE: An application for a permit to organize the Central Bank of Chebanse has been filed. Total capitalization would be $500,000, consisting of $200,000 in capital, $200,000 in surplus and $100,000 in reserve. Applicants include B. H. Whitsitt and Herman W. Snow, Kankakee; Tobe C. Schroeder, Jr., Ashkum; Donald Haley, Clifton, and John D. Whitsitt, Chicago. FL O R A : An application for a permit to organize the Flora State Bank has been filed. Total capitalization of the new bank would be $750,000. Applicants include: Charles E. Dial, Springfield; Lloyd M. E p p e rs o n and B o b S . P r in c e , McLeansboro; Jam es Ray Purcell and Maurice Fry, Salem; Samuel Throgmor ton, Mt. Vernon. C H E R R Y V A L LE Y : A charter has been issued for The Bank of Cherry Valley at the northwest intersection of Bell School Road and Harrison Avenue. Total capitalization of the new bank will be $800,000, consisting of $300,000 in capital, $300,000 in surplus and $200,000 in reserve. Officers include Robert W. Rice, president; Jam es E. Sheridan, executive vice president and cashier; Ray A. Atkins, vice president and Virginia Lanning, assistant cashier. Direc tors include Malcolm Doig and William F is h e r , C h e rr y V a lle y ; H a rr y F . Espenscheid, R. Robert Funderburg and Mr. Sheridan, Rockford, and Mr. Rice and John T. Wolf, Belvidere. G L EN V IEW : Lynn Racine has been ap pointed public affairs officer of the Glen view State Bank. CH ICAGO : Alfred F. Miossi, executive vice president and head of the international -f T ^ 4 A, *j banking department of Continental Bank, has been elected president of the Bankers Association for Foreign Trade. Christy Armstrong Leo Kane HA RW O O D H E IG H T S: Lillian C. Metz has been appointed assistant vice president of both Parkway Bank and Trust Company here and the First State Bank o f Chicago. Mrs. Metz will be in charge of advertising, marketing and public relations. She joined the bank in 1964. N A P E R V IL L E : A charter has been issued for the organization of the Surburban Bank of Naperville at 1195 East Ogden Avenue. Total capitalization of the new bank will be $1,500,000, consisting o f $600,000 in capital, $600,000 in surplus and $300,000 in reserve. Officers are Robert O. W alcott, president; Richard Anderson, executive vice president; John Herrod, cashier, Des Plaines, and Don Kelley, assistant cashier, Lisle. Directors are Floyd H. Abramson, Chicago; Messrs. Anderson and W alcott, Naperville; Fred E. Newman, Charleston, and Aaron Regensberg, Lincolnwood. Bob Scott in a correspondent bank’ American Trust iX A R L IN G TO N : Jerry L. Julius has joined the Arlington State Bank as a trainee. BRO W N TO N : Ray Lindeman of Brownton and Clayton Hoese of Glencoe have purchased The First State Bank here from the Mann family. M r. Lindeman, an employee of the bank since 1946, will be president and Mr. Hoese will be vice presi dent. Mr. Hoese is president of the Security State Bank of Glencoe. D EERW O O D : The First National Bank has opened a drive-in window. M IN N E A P O L IS: Jam es L. Reissner and Richard W. Jensen have been named vice presidents of the First National Bank of Minneapolis. O R M S B Y : Urban Neisen of Vermillion has purchased controlling interest of the Ormsby State Bank and the Ormsby In surance Services. He will assume the posi tion of president April 30. He was assistant cashier and manager of the insurance agency at the Vermillion State Bank. SA IN T PA U L: Richard M. Peterson has been e le c te d vice p re sid e n t o f the Northwestern National Bank. John D. Rogers was appointed to the trust com mittee and Raymond R . Grove was promoted to vice president and division manager. IOWA-DES MOINES and Savings Bank 9TH AND MAIN, DUBUQUE, IOWA iu~< MEMBER FDIC-FRS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M IN N ES O T A NEW S Service innovations are our business. Why not make them yours? ‘WE HAVE WHAT YOU WANT A W IL LO W B R O O K : A charter has been issued for the organization of the First Security Bank at 100 E. Plainfield Road. Total capitalization of the new bank will be $1 million, consisting of $400,000 in capital, $400,000 in surplus and $200,000 in reserve. Officers are Vernon S. Hoesch, chairman; Orren D. Baab, president and Donald H. Fischer, cashier. Directors in clude Mr. Baab, Hinsdale; Alex N. Bruno, Walter B. Carroll and Stephen S. Szymski, Westmont; Mr. Fischer, Glen Ellyn; Mr. Hoesch, Naperville and Harold Kemmerer, Plainfield. NATIONAL BANK Dwayne Smith Member Fed eral Deposit Insurance Corporation 6 Student L o a n s ... C o n tin u e d from p a g e on e student’s application to the lender the results of such a needs analysis together with the institution’s recommendations for a subsidized loan relating to the student’s needs. The Department of Health, Education and Welfare opposes relaxing the needs test standard. The Department claim s the decline in student loans is due to tight money rather than the program. The final bill also provides that nothing in it is to be construed as prohibiting a lender from evaluating the total financial situation of a student making an applica tion for a loan or from counseling a student with respect to any such loans, or from making a decision based on such evaluation and counseling with respect to the dollar amount. Bank Earnings Up O f the first 100 banks to report earnings for the first three months of 1974, 77 had higher earnings, before securities transac tions and 23 reported lower earnings, ac cording to bank securities specialists at M. A. Shapiro & C o. Inc. The 100 banks earned $747.51 million, a 12.6 per cent gain over the $663.68 million earned by banks a year ago, Shapiro & Co. said. O f the 100 banks, 73 had higher net in come and 27 had lower income. Total for the 100 banks was $746.78 million, a 13.3 per cent increase over the $663.68 million earned by the 100 banks a year ago. SOUTH D A K O T A NEW S LEM M O N : The capital account of the Bank of Lemmon has been increased from $150,000 to $250,000 by the bank’s stockholders, according to Stanley M. P e te rs e n , bank p re sid e n t. T im o th y Gossman has been promoted to assistant cashier and manager of the Lemmon In surance Agency. He joined the bank in May of 1971. Donald Snorteland has joined the bank as an officer trainee. V E R M IL L IO N : The following promotions have been announced by the Vermillion United National Bank: Jimmie J. Thomas, to assistant vice president and assistant manager of the Vermillion offices; Roylyn R . Schoon, to assistant cashier, ad ministrative offices, Sioux Falls, and Rita M. Girard, assistant cashier, to operations officer. Thomas W. Wagner has been ap pointed assistant vice president and instal ment loan officer. POSITION AVAILABLE Young livestock loan officer with bank ex perience. Good salary, good community and good future. Write File PCV, c/o N O R T H W E ST E R N B A N K E R , 306 15th Street, Des Moines, Iowa 50309. -tú FOR SALE Brandt S L Sorter. Brandt Package with crimper. Call 515/244-8941 Bob Palmer or Bennett Gordon k J», W YO M IN G NEWS BU FFA LO : Donald P. Kraen has been named as bank manager of the Wyoming Bank and Trust. He joined the bank in 1957 as bookkeeper and was appointed cashier in 1962. He fills the vacancy created by the resignation o f R obert Ferril who has become senior vice president of the Bank of Commerce in Sheridan. Robert L. Han cock, Jr., partner in the Central Garage was named to the board to fill the unexpired term of Mr. Ferril. CO LO RADO NEW S CANON C IT Y : Lloyd M. Shonyo Jr., has been promoted from cashier to vice presi dent and cashier of the First National Bank. Other promotions include John A. Schopf, Jr., from comptroller to assistant vice president and comptroller; Wayne Snyder, from collections manager to assis tant cashier for instalment loans, and Kenneth Gregory, to assistant cashier for data processing. INSTRUCTOR W A N T ED Agri-banking program. Iowa Central Community College, Fort Dodge, Iowa. A gricu ltu ral *& B ankin g background beneficial. Contact Harvey Martin, 330 Avenue M, Fort Dodge, Iowa 50501. 515/576-3103 POSITIONS AVAILABLE PRES.— (Ks) small towns, need 3. Banks $15-25 Mil. Agri & Com’l lending exper.......................................... $18-22,000 CONTROLLER— need 2 (Ks) (Iowa) prefer CPA w/over 5 yrs. exper................................................................................ $25,000 COM ’L LN DEPT HD— must have MBA & 5-7 yrs. exper. in bank over $200MM. Heavy adm. & mktg............ $40,000 AGRI-LN—some travel, 8-10 yrs. mgmt of agri-loan portfolio over $100MM; prefer MBA d e g re e ........................ $40,000 PRES.— (Mo) prefer sr. officer from bk over $100MM . Excel lent opport...................................................................... $25,000 SR. OPER.— (Mo) bank over $300M M ........................ $25,000 CLERICAL—tellers, proof oper., loan sec'ys. ad. sec'ys; need in the K.C. area. Fee Paid .............. OPEN BANKERS AVAILABLE EXEC. V.P.— small Ks. bank, college grad, under 30, for Neb, Iowa & Ks............................................................. $16,000 INST. LN— (Ks) degreed officer under 30. 2 yrs. bank lend ing exper......................................................................... $12,000 EXEC. V.P.— (Okla) VP & TO, no law degree, age 48, prior 6 yrs In Ks. bank. Exper. includes all loans (Com'l also);correspondent balances, oper. supervision In banks under $40 mil, ........................................................................... $22,000 FOR SALE 60 banks in 21 different states including Iowa, N ebraska, Illinois, M innesota, Missouri, North Dakota, South Dakota, and Colorado. Write to: Dan Hyland, Crown Banking S e rv ices, 325 W est Prospect Ave., M t. Prospect, Illinois 60056. When 7 S K you need a little help call us on our toll free Bank Department w ats number Correspondent Hi Central National Bank 8-Trust Company “It TOM HAGAN & ASSOC. Box 12346 N.K.C., Mo. 64116 (816) 474-6874 takes abanker toknow one” WANTED $9 million bank in Northeastern Illinois has opening for an Operations/Loan Officer. Please furnish resume and salary re q u i r e me n t s . Wr i t e B o x J E G , c/o N O R T H W E ST ER N BA N K ER , 306 15th St., Des Moines, Iowa 50309. A f OÍ kH IT y y i* K k 5*4 "r BE Y O U R A R E A ’S LEA D IN G AG BANK for as little as $1 a day. Doane’s Farming for Profit can be your exclusive customer relations newsletter to the best farmers in your area. Ask about free 6month sample subscription. Write D. R. Gorr, DOANE, Dept. 701, 8900 Man chester Road, St. Louis, Mo. 63144. jèàêii EDDIE A. WOLF Á. Bank personnel only. Allemployees are former bankers. WANT ADS Rates 25 cents per word per insertion. Minimum: 12 words. NORTHWESTERN BANKER 306 1 5th St.. Des Moines. Iowa f§§ WILLIAM B. RUSSELL G. GREGORY S. GERALD B. GREAVES PLAGER WOLFE MURPHY y y*' hr > A SERVIN G PRO FESSIO N ALLY Bonking, Financial & Business Personnel Iowa and Nationwide C A P IT A L PERSONNEL SERVICE y 204 Securities Bldg. 515— 283-2545 Des Moines, Iowa 50309 k Vol. 3 N o. 52 Northwestern Banker Newsletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 25< per copy, $ 6 per year. Second class postage paid at Des Moines, Iowa. Address all M 8 0 0 - 3 6 2 -1 6 1 5 mail subscriptions, charfges of address (Form 3 579) manuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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