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Des Moines, Iowa August 29,1977 Chmn. Burns Explains Fed’s Independence In a commencement address to graduates of Jacksonville Universi ty in Jacksonville, Fla., on August 13, Dr. Arthur F. Bums, chairman of the Federal Reserve Board of Governors, explained “The Impor tance of an Independent Central Bank.” After detailing the detri mental effect on various societies and governments of a money system controlled by the ruling power, including the inevitable destruction by inflation, Dr. Bums made these remarks, excerpted from his important speech: With a view to insuring that the power of money creation would not be similarly abused in our country, the Congress has given our central bank major scope for the indepen dent exercise of its best judgment as to what monetary policy should be. In fact, Congress has not only protected the Federal Reserve System from the influence of the Executive Branch; it also has seen fit to give the System a good deal of protection from transitory political pressures emanating from Congress itself. Probably the two most important elem ents m aking for Federal Reserve independence are the following: First, the seven mem bers of the Federal Reserve Board serve long and staggered terms and can only be removed for “cause.” This arrangement severely limits law. Certainly, from the standpoint of the Executive Branch, it would at times—perhaps often—be more convenient to instruct the central bank what to do than to reckon with the System’s independence. In the end, however, the country would not be as well served. The Federal Reserve, it needs to be emphasized, seeks earnestly to support or to reinforce governmen tal policies to the maximum extent permitted by its responsibilities. When the System’s actions depart, as they occasionally have, from the way in which the executive branch A. F. BURNS would wish it to act, that is politically. Second, the Federal generally because the System tends to take a longer-range view of the Reserve System finances its activi ties with internally generated funds nation’s welfare. Actually, most of and therefore is not subject to the the time, monetary and fiscal customary appropriations process. policies are well coordinated and This arrangement is intended to m utually reinforcing; in other assure th a t the Congressional words, they are the product of “power of the purse” will not be continuing and fruitful discussions used in an effort to induce System between members of the adminis officials to pursue policies that they tration and Federal Reserve offi otherwise might consider poorly cials. Not only is dialogue continuous suited to the Nation’s needs. with the executive branch of The Federal Reserve has thus government, but Federal Reserve been able to fashion monetary officials appear frequently before policy in an impartial and objective Congressional committees—some manner—free from any sort of thing that works, on the one hand, partisan or parochial influence. to keep Congress informed as to The degree of independence which Congress has conferred upon the Federal Reserve has been a INDEPENDENCE....... source of frustration to some [Turn to page 5, please] possibilities for any “packing” of the Board and enables members of the Board to act without special concern about falling out of grace Correspond with the bank that can give you a lot of help for your money. f* '-. i , - , — Wr iom 1 li nesMpines Ik ¿É a. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FOIC ^¿111111! A n A f f i li a t e o f N o r t h w e s t B a n c o r p o r a t i o n BANCO George Milligan (5 1 5 ) 2 4 5 - 3 3 0 0 A good correspondent bank relationship is still built by good people. Yours and ours. Call me to ll fre e . . . 800-332-5991 m if A k>It' John Mangold Senior Vice President Iowa News ALDEN: Harry A. Peters has resigned as executive vice president of the Alden State Bank to join a bank in Glenwood, Minn. CORYDON: Deryl F. Hamann, chairman of Citizens State Bank, has announced the election of Dale Heimann as president. Mr. Heimann has been the executive vice president since joining the bank in October of 1975. DES MOINES: Marvin R. John son. Iowa state savings bonds director, is seeking the assistance of bankers to eliminate the current rash of savings bonds “chain letter" schemes in the state. He noted that these chain letters violate Postal Lottery and Fraud Laws as well as lottery laws of the State of Iowa. Banks are requested to refuse to sell savings bonds in cases where they know, or suspect, that the bonds will be used in any type of chain letter scheme. Banks are not liable for refusal of such service, Mr. Johnson said. ELDORA: Dennis Weis has joined the Second National Bank as farm representative. He comes to Eldora from Harlowtown, Mont., where he Over 6 0 banks have discovered the opportunities w e offer with correspondent services. Why not join them? C all 319582-1841 collect Robert Scott, one of our Men o f O pp ortu nity € || American Trust & Ejfjf Savings Danl^ Town Clock Plaza, Dubuque, Iowa Member: FDIC & Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Merchants ^ National Bank 151 C e d a r Rapids. Io w a 52 4 0 1 A B A N K S O F IO W A B A N K was with a bank for a year and a half as a lending officer. OGDEN: Helen Lass, vice presi dent, recently was named president of City State Bank. Leonard A. Good was elected chairman and Hugo Boehm vice chairman. ROCK RAPIDS: Andrea Van Beek has joined the Rock Rapids State Bank as a trust officer and trust consultant. She is being employed jointly by the Rock Rapids State Bank, Sioux County State Bank of Orange City, People’s Bank and Trust Co. of Rock Valley and Lester and the Ashton State Bank. Miss Van Beek is a 1977 University of Iowa law graduate. DONAHUE: The Iowa Depart ment of Banking assumed control of the Donahue Savings Bank at 2:30 a.m., August 20, three days after Banking Superintendent Tom Huston sent examiners to the bank. Irregularities reportedly were found, apparently in the loan portfolio, and Mr. Huston and his chief aides moved in to supervise the examination more closely. Walter Paustian, 74, principal stockholder and chairman of the bank, resigned August 21. Mr. Huston appointed Mike Newland, chief examiner with the depart ment, as manager of the bank while it is under the Iowa department’s jurisdiction. A full scale audit by a CPA firm is underway and is expected to take another three weeks to complete. Donahue Savings had $4.8 million deposits at last year end. The town of 216 persons is located just north of Davenport in Scott County. Mr. Huston said he “doesn’t anticipate that any customer of the bank will suffer a loss.’’ It is covered by FDIC and a $1.25 million blanket bond. NORWAY: Burt Day, president, Benton County Savings Bank, has been elected president, freshman class, Graduate School of Banking, Madison. WATERLOO: Bruce Rickert, 20, was critically injured August 11, when his motorcycle struck a car that pulled out in front of him on a W aterloo stre et. He is now recuperating satisfactorily at home from head injuries. He is the son of Bill Rickert, senior vice president of the National Bank of Waterloo. Nebraska News OMAHA: Center Bank W est opened for business on August 29 at its new location at 3540 South 84th Street. The official grand opening ceremony will be held at 10 a.m. on September 12 and the grand opening week will run through September 17. Minnesota News ALEXANDRIA: New officers of the Independent Bankers of Minne sota elected here are: president, Merle Larson, president, Farmers State Bank, Clarissa; first vice president, Paul Bringgold, presi dent, First National Bank, Cannon Falls; second vice president, Adrian Golberg, president, Empire State Bank, Cottonwood, and treasurer, Duane D. Gunderson, president, Merchants State Bank, Lewisville. Norbert McCrady con tinues as executive secretary. M IN N EA PO LIS: R ussell E. Kruse, Jr., has been elected personal banking officer at First Minnehaha National Bank. Homer is ready to help you ... ... with CCB’s full-service correspondent banking. Let Homer Jensen prove that we do your kind of banking. ° CAPITALCITYBAAK Des Moines second largest independent bank. Main Bank East Fifth and Locust 50309 515/244-5111 Ca r leto n D. B Co e h INVESTMENT SECURITIES TELEPHONE 288-2152 AREA CO D E 515 NEW ISSUE • DES MOINES BUILDING D e s M o in e s ,I o w a $4,593,000 SCHOOL DISTRICT OF FREMONT, NEBRASKA General Obligation School Bonds Dated: September 15,1977 MOODY'S: “Aa” Denominations: $3,000 & $5,000 Both principal and semiannual interest (March 15 and September 15, first coupon due September 15, 1978) payable at the office of the Dodge County Treasurer, Fremont, Nebraska. • IN THE OPINION OF COUNSEL INTEREST ON THESE BONDS IS EXEMPT FROM ALL PRESENT FEDERAL AND NEBRASKA INCOME TAXES. MATURITIES 0 • • 7.00% $ 48,000 September 15,1978 60,000 September 15,1979 160.000 September 15,1980 170.000 September 15,1981 175.000 September 15,1982 180,000 September 15,1983* 4.70% 195.000 September 15,1984* 205.000 September 15,1985* 215.000 September 15,1986* 225,000 September 15,1987* 235.000 September 15,1988* 3.10 3.40 3.60 3.80 3.90 4.00 4.10 4.20 4.30 4.40 4.50 4.70% $245,000 September 15,1989* 255,000 September 15,1990* 4.90% 270,000 September 15,1991 * 285,000 September 15,1992* 5.00% 300,000 September 15,1993* 315,000 September 15,1994* 335,000 September 15,1995* 350,000 September 15,1996* 4.00% 370,000 September 15,1997* 4.60 4.70 4.80 4.90 5.00 5.10 5.15 5.20 5.45 *Optional beginning September 15, 1982 at 1 01 1/z %; September 15, 1984 at 101%; September 15, 1986 at 1001/ 2% and September 15, 1988 at 100%. # LEGALITY TO BE APPROVED BY BAIRD, HOLM, MC EACHEN, PEDERSON, HAMMAN & HAGGART, ATTORNEYS, OMAHA, NEBRASKA. 0 The School District of Fremont encompasses the City of Fremont, the Village of Inglewood and agricultural land in Dodge and Douglas Counties. There are approximately 35 square miles in the School District. Fremont is located in extreme eastern Nebraska, 35 miles northwest of Omaha and 50 miles north of Lincoln. The City is directly served by U. S. highways No. 30, 77 and 275. Fremont is known as the soybean processing center of Nebraska, as well as a major processor of alfalfa and hybrid seed corn. It is noted for its feed and fertilizer plants, meat packing, foundries, nurseries and farm buildings. Among the non agriculture related products made are mini-bikes, concrete farms, campers, school supplies, ladies garments, store fixtures and steel bearings for railroad cars. The nearly 300 retail outlets in the community are an important factor in the economy with annual sales in excess of $75 m illion. Basic financial services in Fremont are provided by two national banks and one state bank with deposits of approximately $125 m illion and by two savings and loan association home offices with deposits of more than $200 million. w These bonds are being issued under the authority of Sections 10-701 to 10-716 Reissue Revised Statutes of Nebraska, 1943, as amended. The proceeds of this bond issue will be used for the purpose of erecting a new school building, paying for additions to and repairs and renovations for existing school buildings of the District and furnishing the necessary furniture and apparatus for said school buildings. In the opinion of counsel, these bonds are legal and binding general obligations of the School District of Fremont, Nebraska 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. 0 FINANCIAL STATEMENT Market value of taxable property Assessed valuation ® Direct debt, Including this issue Total direct and overlapping debt Population, 1977 estimate: • $214,770,486 75,169,670 x 6,996,000 8,353,800 29,508 Direct debt per capita: Total debt per capita: Area: 20,480 acres Direct debt per acre: Total debt per acre: Tax collections have approximated 100.2% of taxes levied for the past three years. We own and offer subject to prior sale and change in price and subject to our attorney’s approving opinion. The information contained in this circular is not guaranteed, but is derived 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $237.09 283.10 341.60 407.90 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • PLUMMER: The Board of Governors of the Federal Reserve System has announced its approval of the application of Caprice Corporation, Red Lake Falls, to acquire Plummer State Bank. Illinois News BOULDER HILL (Unincorpora ted) : A permit to organize has been • issued to the Boulder Hill State Bank at the southeast comer of Boulder Hill Pass and Hillstone Road in Oswego Township, Kendall County. The state bank’s total • capitalization of $1 million will consist of $400,000 in both capital and surplus and $200,000 in reserve. The 40,000 shares of stock will have a par value of $10 each. 0 Organizers are: William E. McCau ley, Oswego; Don L. Dise, Frank Voris, George B. Peters, William H. Blackburn, Jay B. Gossett, Herbert E. Funk, all of Aurora. ^ 0 • 0 • 0 0 0 CHICAGO: Charles M. Bliss, 55, president of Harris Bank, has been elected president and chief execu tive officer of the bank, of which he has been president since July, 1976. As c.e.o., he succeeds William F. Murray, who will retire September 30 after reaching the age of 65 September 19. Stanley G. Harris, Jr., was elected chairman of both the bank and its holding company. PEORIA: Hayne Ellis, III, has been promoted to trust officer of Commercial National Bank. He joined the bank in 1970. Montana News GLASGOW: Treasure S tate Bank’s application for Federal deposit insurance has been ap proved. The bank's capital ac counts total $700,000. Wyoming News WORLAND: Robert Noel, execu tive vice president of Wyoming Bancorporation of Cheyenne, has announced that the corporation has filed for a state bank charter for a bank here. North Dakota News DICKINSON: Liberty National Bank has received consent to establish an office on the northwest comer of 194 and Highway No. 22 here. FARGO: A1 K. Simpson, 56, Digitized president for FRASER and managing officer of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the First Bank of North Dakota-Fargo, will leave that post to become chairman and chief execu tive officer on September 15 of FIRST BANK, with divisions in La Crosse and Milwaukee, Wis. The Wisconsin bank also is an affiliate of First Bank System, Inc. KENMARE: Leonard M. Jorgen son, president of the State Bank of Kenmare, has announced the promotion of James A. Jorgenson, his son, to executive vice president. Call your roving correspondent at Bankers Trust Colorado News ALAMEDA: Marvin Curry has been named a vice president and Betty Newman operations officer of Alameda National Bank. Mrs. Prochnow Dies Mrs. Herbert Prochnow, wife of Dr. Herbert Prochnow, retired president of the first National Bank of Chicago, died August 12. Dr. Prochnow also is registrar of the Central States Graduate School of Banking at the University of Wisconsin in Madison. INDEPENDENCE......................... [Continued from page 1] System activities and which, on the other, affords Senators and Con gressmen an effective means of registering approval or disapproval of Federal Reserve policy. In practical term s, the economic policy dialogue that is always in process within our government Use our to ll-fre e WATS line: 800-362-1688 Member: F.D.I.C./Federal Reserve System produces a thorough exploration of options. It may fairly be said, I believe, that the System’s indepen dence results in a more thorough discussion and thrashing out of public issues than would otherwise occur. Despite the salutary influence that the Federal Reserve’s indepen dence has had on our Nation’s economy, legislative proposals that would place the System under tighter rein keep being introduced in Congress. The shortcom ings of these a good correspondent is more than justa pen p a l... Call John Rodgers Welch at Valley National Bank and see what we mean. (5 1 5 ) 2 4 5 -6 1 3 9 IS I Valley National Bank Member FDIC and FRS A ‘BANKS OF IOWA BANK CALL ON THE “PERFORMANCE TEAM” where comm on transactions are handled uncommonly well. FIRST N A T IO N A L LIN C O L N 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.l.C. 9 f¿ EXECUTIVE SEARCH Identify - Recruit - Evaluate Third Party Confidentiality Effective Communication 25 yrs. Professional Experience Organization & Salary Consulting National Exposure Various Programs Available Sales & Management Search, Inc. become so deeply embedded in our economic life. We are determined to continue promoting the expansion of our economy and yet control the supply of money so as to prevent a new wave of inflation. Such a policy, I firmly believe, is the only responsible option open to us. Personnel Services & Consulting for America's Bankers individual proposals matter less, however, than what appears to be their common objective, namely, to reduce the Federal R eserve’s independence an to restrict its scope for discretionary action. That, I believe, is the real thrust of the diverse efforts to “reform” the Federal Reserve System. It is perhaps of some significance that such proposals not infrequently come from individuals who are basically dissatisfied with what they regard as excessive Federal Reserve concern with battling inflation. The Federal Reserve System, I assure you, will not be deterred by the drumbeat of dubious proposi tions concerning money and in terest rates. We Eire determined to continue on a path of further gradual unwinding of the infla tionary tendencies th a t have WANT ADS Rates 40 cents per word per insertion. Minimum: 12 words NORTHWESTERN BANKER 306 15th S t., D es M oines, Iowa Ag loan representative tp be number two person in large eastern Iowa bank. Salary negotiable. Write Box KTV, c /o NORTHWESTERN BANKER, 306 15th Street, Des Moines, IA 50309. Norelco Microfilm Lamps NO. FCS LOTS 6-47 OF: 48-95 96-UP tt N o. FCS $3.60 3.35 3.25 SALE, LEASE OR LEASE PURCHASE Preconstructed financial buildings with all name brand bank equipment included. Permanent and temporary structures available. 12’ x 30’ up to 28’ x 70’ with full basement. SON CORPORATION, Box 684, Wichita, KS 67201-316/942-8167. 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To be a part of large org a n iza tio n .................................. $25,000 AGRI-LENDING— $25MM Illinois bank seek ing qualified individual for agri-division; lending and farm calls. Farm trust back ground helpful ............................................$20,000 Various other positions available in commercial and installment lending, as well as top management, for well qualified individuals. A complete BANK PERSONNEL SERVICE, serving 21 northwestern and midwestern states. Call or send resume’ in confidence to: EDDIE A. WOLF WILLIAM B. GREAVES RICHARD BRO RAYMOND SCHNEIDER P.O. Box12346 — 208 East 18th Avenue North Kansas City, MO 64116 (816) 474-6874 t CENTRAL NATIONAL BANCSHARES. INC. “IT TAKES A BANKER TO KNOW ONE” Vol. 6 No. 18 Northwestern Banker N ew sletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, D es Moines, Iowa 50309. Subscriptions 25 cents per copy, $8 per year. Second class postage paid at D es Moines, Iowa. Address all mail for subscriptions, changes of address (Form 3579) manuscripts, mail item s to above address. Digitized FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis f Central Iowa bank in top agricultural area seeks qualified farm manager fo r farms owned in trust or managed as agent. Write Box ULT, c /o NORTH WESTERN BANKER, 306 15th Street, Des Moines, IA 50309. TOM HAGAN & ASSOCIATES .99 DES MOINES, IOWA 0 COM’L LOAN— Addition to present staff; Toll free 800-362-1615 ; AFFILIATED V A ^ s u p p l ie s , in c . P.O. Box 10-Z 702 E. W ashington St. W ashington, Iowa 52353 Ph. 319-653-2123 Correspondent Bank Department “C POSITION AVAILABLE Need executive officer for $10MM Iowa bank. Write Box FLE, c /o NORTHWESTERN BANKER, 306 15th Street, Des Moines, IA 50309. EXCELLENT OPPORTUNITY Call on us! Central National Bank 6- Trust Company LOAN OFFICER FARM MANAGER We prepay any shipm ent over $100.00 net. M inim um order, $25.00 net. 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