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Vol. 4 No. 14 Des Moines, Iowa August 4,1975 Urges Fed Lower Reserve Requirements A prominent bank economist has urged the Federal Reserve System Board of Governors to reduce reserve requirements of member banks as a bold step toward improving the capital positions of all member banks. Dr. George W. McKinney, senior vice president and head economist of the Irving Trust Company, New York, said at a recent meeting that “at a time like the present, when the Federal Reserve and others have expressed concern that capital shortages may inhibit bank lending needed to spur economic recovery, it is clearly in the national interest to do whatever is reasonable to rectify the problem.” Dr. McKinney added that “with one bold stroke of the pen it could help member banks improve their capital positions by simply paying interest on the reserves member banks hold at the Fed, or by reducing reserve requirements, or both. This would permit member banks to increase their earnings, thus increasing their ability to attract new capital as well as to retain more internally generated capital.” At the present time about $30 billion is held by the Federal Reserve System as reserve deposits of member banks, he said. These reserves are a device which the Fed uses to control the money supply. But Dr. McKinney believes that the Fed could exert adequate control with less such deposits demanded of member banks. He also pointed out that reserves the banks keep with the Federal Reserve represents funds the Fed uses to invest in government securities at a profit to the reserve system , which it tu rn s over annually to the government after deducting its own operating ex penses. “The Federal Reserve has the cost-free use of these funds, and its earnings are that much higher,” Dr. McKinney stated. “Remember that the Federal Reserve banks are technically owned by the member banks. Yet we don’t benefit from those earnings, because the Fed only pays a flat 6 % dividend on its capital stock. Instead, the Fed pays over to the Treasury each year the vast bulk of those earnings.” In calling for a reduction in reserve deposits-which the Fed can vary from 7 % to 22 % of a bank’s demand deposits, for example--Dr. McKinney cited what would have happened last year if the Federal Reserve had reduced these re quirements to the legal minimum of 7%. “It would have added $409 million, or 13.2%, to the internally generated additions to capital by member banks. “If the Fed had maintained reserve requirements at the min imum permitted by law over the past seven-year period, and if the banks had invested these funds at the same rate of return earned on other comparable funds and had maintained the same payout ratio, the ratio of equity to assets would now be 7.46%. One-fourth of the decline in member bank capital ratios that disturbs the Fed so much was clearly within their discretion to prevent.” He said he saw no reason why the Federal Reserve System could not change the present reserve require ments. “The law clearly specifies max imum and minimum levels, and directs the Fed to establish reserve requirements within that range. Thus, it is clearly within the province of the Fed to lower the reserve requirements without any fu rth er instructions from the Congress or anyone else.” Dr. McKinney concluded his RESERVE REQUIREMENTS ... [Turn to page 5, please] Banking for a brighter future. For straight talk on corre spondent banking, talk with Homer Jensen at CCB. We do your kind of banking. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CAPITAL CITY BAAK Des Moines1second largest independent bank. Main Bank East Fifth and Locust, Des Moines, Iowa 50309 515/244-5111 2 Heard the latest? Talk to a man from FK ST NATIONAL BANK Gary Stevenson, Vice President Experienced help for all your correspondent banking needs Together w e have a lot to share CENTERVILLE: Owners of the Centerville National Bank and Hawkeye Bancorporation have agreed in principle for purchase of the bank by Hawkeye. It is subject to Federal Reserve approval. CLINTON: Funeral services were held recently for A lvin W. Poffenberger, former vice president and cashier of Clinton National Bank. Mr. Poffenberger retired in December of 1971. DAVENPORT: Ted C. McNaney of Marion, senior bank examiner with the State Department of Banking for the eastern Iowa district, has been appointed a vice president of First Trust & Savings Bank. Call 312/927-7000 announced his retirement. Other changes include: A1 Lynes, execu tive vice president; Gary Short, vice president, and James Walker, assistant vice president and cash ier. KIMBALLTON: The Board of Governors of the Federal Reserve System has announced its approval of the application of The Landmands Corporation here to become a bank holding company through the acquisition of The Landmands National Bank. SIOUX CITY: The Security National Bank has announced new areas of responsibility for several officers in the banks and bankers division. James M. Hongslo will assume additional duties designed GRIMES: A District Court order to expand his involvement with to Cecil Dunn, superintendent of correspondent banks and bankers banking, to issue a charter to in the four-state area. Wayne Grimes State Bank will be appealed Johnson has joined the division as correspondent bank officer. Ed to the Iowa Supreme Court. ward J. Leahy, division vice INDEPENDENCE: C. A. Hand- president, has been named execu felt has been named president of the tive vice president of Northwestern Security State Bank succeeding S tate Bank in Orange City, John Corcoran, Jr., who was purchased in 1973 by the Security named chairman. Mr. Corcoran National Corporation. Owen A. succeeds N. H. Tegen who has Riddle, agricultural loan officer, will become more involved in the function of the Security Agri-Credit Corporation. SIOUX CITY: The First National Bank has filed an application to establish a bank office in Morningside. 4 lhuD r o v e r s National Bunk of Chicago 47th and Ashland Ave. Chicago, III. 60609 Member F.D.I.C. Nebraska News X. A: KEARNEY: William H. Riley, state banking director, has an nounced the chartering of the Mid-Nebraska Bank of Kearney to be located at 31st Street and Second Avenue. He also announced that the application for a charter for the State Bank of Kearney to be located at 2525 Avenue A, also in Kearney, has been denied. KEARNEY: Funeral services were held recently for W. Stafford Wimberley, 71, retired senior vice president of the Platte Valley State Bank and Trust. NELIGH: David Knust has joined the National Bank as cashier. He previously served as cashier of The First National Bank of Wisner. SCOTIA: Robert Sixel has joined the State Bank of Scotia as assistant cashier. Minnesota News The Independent Bankers of Minnesota will hold its 1975 Convention A ugust 13-16 a t Arrowwood Lodge in Alexandria. R egistration opens W ednesday morning, August 13, followed by council and committee sessions. J -I V' SA Senior Vice President Ik ’ 4V wants to build a solid correspondent banking relationship with you. Bankers Trust Use our toll free WATS line: 800-362-1688 - il \ Ben Eilders, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis if BERNIE MILLER ED RIETZ, JR. FRED CUMMINGS Doug VanMeeteren, Correspondent Rep. Improve your bottom line with our Correspondent Services from First National where your customers are our concern, too. Iowa News m D ro ve rs in S ioux City 6th & Locust/ Des Moines, Iowa 50309 HERE'S YOUR "NEW ACCOUNT OFHCER".......................... A self contained, easy to use film strip unit that clearly explains either the IRA or Keough plans to your customer in just 18 minutes each. This DuKane A-V Matic Automatic Sound Film strip projector is easy to use, with built-in screen and cassette player. It literally runs itself. Your customer learns the benefits provided by IRA legislation in a film called “How to Make $50,000 Extra — Without Even Trying. ” A second film available, entitled “Only You Will Take Care o f You” is directed at self employed pensions. (Keough Plan). Other A.B.A. cassettes may be played on this machine. r FOR COMPLETE D E TA ILS NAME_________ ADDRESS______ C I T Y ____________ PHONE NUMBER DEVOTED TO YOUR BANK’S GROWTH W. E. Young, President P.O . Box 2 5 5 4 , Lincoln, NE 6 8 5 0 2 Telephone (4 0 2 ) 4 2 3 -2 4 4 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FIRM NAME q The business sessions begin the morning of August 14. BABBITT: D. Jack Robertson, Jr., has been elected president of the F irst S tate Bank. Mr. Robertson previously with the St. Anthony Falls office of the First National Bank of Minneapolis. COTTONWOOD: The Em pire State Bank has announced the addition of Mark Bjomebo as an instalment loan officer. MANKATO: Durwood W. Thomp son has been elected president of the F irst N ational Bank of Mankato effective September 15. Mr. Thom pson formerly was president and managing officer of the F irst N ational Bank of Willmar. ST. PAUL: Agreement in principle of a merger of two bank holding companies and acquisition of 12 independently owned banks has been announced by W. T. Richards, chairman, Mid America Bancorporation, Inc., and Carl R. Pohlad, president of Bank Shares Incor porated, Minneapolis. The ar rangement would merge into Mid America all five banks of Bank Shares, a registered bank holding company, and 12 independently owned banks in which Mr. Pohlad and associates have a major interest. Mid America Bancorporation would become the surviving corporation. The resulting holding company would have 24 affiliated banks, 18 of which are in the Twin Cities area, with a major bank, Marquette National, located in downtown Minneapolis. The remaining six are located in Rochester, Worthington, Hutchinson and three other outstate locations. A complete list of the banks involved will be made available in the near future, the announcement said. The announcement noted that the consolidation would result in a banking organization with more than $35 million in capital and more than $1/2 billion in deposits. The transactions are subject to certain contingencies including the approval of various governmental A National Personnel Service Dunhill Personnel of Des Moines Specializing in Bank Employment Suite 410 - Equitable Building 604 Locust Street Des Moines, Iowa 50309 https://fraser.stlouisfed.org Phone 515/243-1182 Federal Reserve Bank of St. Louis agencies as well as the boards and shareholders of Bank Shares, Mid America and the independent banks involved. WAYZATA: Roy F. Rasmussen has been elected vice president and cashier of the First National Bank. WILLMAR: Oliver H. Hagen has been elected president of the First National Bank of Willmar. Mr. Hagen previously served as vice president of The First National Bank of Austin. Illinois News CHICAGO: An application for a permit to organize United Bank of Chicago, 5946-60 North Broadway Street, has been filed. The bank’s capitalization will total $2,250,000. CHICAGO: Charles B. Hall has been moved from his position as regional administrator of national banks of Chicago. Mr. Hall will be succeeded by Billy C. Wood, former regional administrator of national banks in Atlanta. Mr. Wood, a native of Lubbock, Tex., served as deputy regional administrator in Dallas before moving to Atlanta. CLEARING: FDIC has announced the deposit liabilities of State Bank of Clearing (Chicago) have been assumed by Clearing Bank, a newly-chartered insured bank. The bank opened July 14. State Bank of Clearing was closed by the Comm, of Banks and Trust Companies on July 12. In addition to assuming about $61 million in deposits and other liabilities, the new bank will also pay a purchase premium of $300,000. COLUMBIA: A charter has been issued by the Comptroller for the Columbia National Bank. SANDWICH: A charter has been issued to the First Security Bank in the Indian Springs Shopping Center. The state bank’s total capitalization of $750,000 will consist of $300,000 in both capital and surplus and $150,000 in reserve. Officers are Carl T. Becker, chairman and president, and John E. Behrens, executive vice presi dent and cashier, Yorkville. Direc tors are William J. Murphy, Evergreen Park; Allen F. McKee, Batavia; Donald E. Holt and Mr. Becker, Plano; Simon C. Larson, Newark; Richard M. Swisher, Olaf E. Gjovik, James K. Marshall, Richard C. H olland, LaVerne Wilkening, Jack Norling, and James Stark, all of Sandwich. MINONK: Henry H. Byers, presi dent, Minonk State Bank, reports the following changes: Lewis H. Gregg, executive vice president and trust officer, retires but continues as a director; Merlyn D. Kalkwarf, cashier advances to executive vice president; Donald Heneger, assist ant vice president to cashier and trust officer, and Stephen O’Riley continues as assistant cashier and becomes assistant trust officer and ag rep. A ssets have passed $13 million. OLYMPIA FIELDS: A charter for a new state bank has been issued for First Suburban Bank at 20900 Western Avenue. Total capitaliza tion will be $1,500,000 consisting of $600,000 in capital and surplus and $300,000 in reserve. Gavin Weir is president and Donald L. Pizza is cashier. Colorado News DENVER: United Bank of Denver has announced the appointment of Roger H. Bohart to vice president, Ronald J. Brescian to personal trust officer, and Morris Mather III to investment officer. DENVER: United Bank of Skyline has announced the appointment of Steven E. Leatherman as director of marketing and commercial loan officer. He formerly was associated with the First National Bank of Chicago. LEADVILLE: Colorado Division of Banking has scheduled a public hearing at 9 a.m. Thursday, Aug. 21, for the proposed charter of Centennial State Bank of Lake County at the intersection of Mountain View Drive and Poplar Street. Applicants are Raleigh N. Alford and Norman A. Weng, Berthoud; and Michael F. Ormsby, Bernard F. Kochevar, Sr., and Joseph P. Kochevar, all of Leadville. North Dakota News BISMARCK: Robert P. Hendrick son has been elected chairman and Robert E. Westbee president and chief administrative officer of. the FOR SALE 9 month old NCR 775-2000 Proof Machine with 12 pockets. Machine offered for sale as we are converting to a POD System September 1 and will not need a multiple pocket Proof Machine at that time. Please contact: Parkersburg State Bank, Parkersburg, Iowa. 1-319346-2414. 5 CALL ON THE “PERFORM ANCE TEAM ” *>V where com m on transactions are handled uncommonly well. FIRST NATIONAL LINCOLN h 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C There are 101 ways we can serve your bank. Tomorrow there will be 102. John Zdychnec Iowa-Des M oines National Bank SM MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION First National Bank and Trust Company, effective September 1. Mr. Hendrickson, president and m anaging officer since 1964, continues as chief executive officer. Mr. Westbee is vice president and liaison officer of F irst Bank System. CAVALIER: Carl A. Berg has been elected chairman and Darold D. Johnson president of the First State Bank, effective September 1. Mr. Berg has been president and managing officer since 1957. Mr. Johnson is vice president of the First National Bank of Valley City. South Dakota News LENOX: Over 600 attended the open house held recently by Valley Exchange Bank. McLAUGHLIN: Funeral services were held recently for Scott Hatch, vice president and director of First State Bank. MOBRIDGE: Citizen’s Bank has announced the following promo tions: Bernard Quaschnick, assist ant vice president and insurance department manager; Marian Selzler and Pamela Hunsley, assistant cashiers. SALEM: McCook County National Bank observed its 50th year on A good correspondent bank relationship ? is still built I by good people. Yours and ours. Mark Christen Assistant Cashier https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 12, according to Boyd Knox, president. SIOUX FALLS: At their July 15 meeting, directors of Northwestern National Bank announced that effective October 1, 1975, Curtis A. Lovre will advance to chairman and chief executive officer and Charles P. (Buck) Moore will succeed him as president. Mr. Moore presently is president of First National Bank, Aberdeen. Montana News MISSOULA: Ross E. Hunt has been elected chairman and George M. Leland president of The Western Montana National Bank, effective October 1. Mr. Hunt formerly was president and manag ing officer since 1965 and Mr. Leland currently is president of the First National Bank of Mankato, Minn. Plan 19th “Market Day” The nineteenth annual Market Day will be held by the First Stock Yards Bank, South St. Joseph, Mo., on September 10. Registra tion begins at 9 a.m. Sam Addoms, formerly with Continental Bank, Chicago, and now executive vice president and treasurer of Monfort of Colorado, Inc., will be a key speaker. Call me toll free . . . 800 332-5991 - Merchants ^ National Bank 181 C edar Rapids. Iowa 52401 A 'B A N K S OF IOWA' B A N K Christy Armstrong Leo Kane Bob Scott ‘WE HAVE WHAT YOU WANT in a correspondent bank’ American Trust and Savings Bank 9TH AND M A IN , DUBUQUE, IOW A MEMBER FDIC-FRS Wyoming News G ILLETTE: S tate exam iner Dwight Bonham has rejected the application of Wyoming Bancorporation to open a fourth bank here. RAWLINS: Bill Chandler has been promoted to operations officer of the First National Bank. RESERVE REQUIREMENTS ... [Continued from page 1] address by urging that “whatever pressure can be brought to cause the Federal Reserve Board to lower member bank reserve requirements would be very much in the interests of the banking system and of the nation.” 6 WANT ADS Rates 35 cents per word per insertion. Minimum: 12 words NORTHWESTERN BANKER 3 0 6 15th St., Des Moines, Iowa POSITION WANTED POSITION WANTED Loan officer, 10 years experience in installment lending as well as commer cial, real estate and agricultural loans. Also have insurance license. Write Box TMN, NORTHWESTERN BANKER, 306 15th St., Des Moines, la. 50309. Desire ag-econ related position with bank in eastern Iowa or northwest Illinois. Graduate University of Illinois, Champaign, B.S. - Agriculture, exten sive ag finance courses. Farm back ground, general interest all areas of agriculture. June L. Johnston Wahl, 4600 Lower Beaver Road, Apt. 1, Des Moines, la. 50310. Phone 515/278-4163. POSITION AVAILABLE FOR SALE 15’ 7” teller counter with three windows and one machine well. Sliding door cabinets beneath three currency draw ers. Walnut finish with black Formica countertop. Contact Valley National Bank, Des Moines, la. 515/245-6100. POSITION AVAILABLE O pportunity available for qualified commercial lender in progressive north Iowa county seat town. Send resume in confidence to Box AQG, c/o NORTH WESTERN BANKER, 30615th St., Des Moines, Iowa 50309. Medium sized trust department in fast growing area in the midwest has an opening for a person in Business Development. Law background desir able, but not essential. Person must be willing to travel extensively within a 200 mile radius. Write to Box ACN, c/o NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. BANKERS PERSONNEL SEARCH, INC. 321 S tep hen s B uilding Des M o in e s, Iow a 50309 515-28 2-4 446 or 515-961 -5419 H arrie tte A llis o n , President E m p loyer Paid Fee C o n fid ential Bank Personnel Only POSITION WANTED Person, age 35, with 16 years of consumer lending, supervisor of a finance company, seeks advancement with a bank. Strong community leaderpublic relations. Will send resume upon request. Write Box PAW, c/o NORTH WESTERN BANKER, 30615th St., Des Moines, Iowa 50309. POSITION WANTED Trust head of $30MM department seeks challenging position in trust depart ment. Will consider specializing in a large department or heading a small department. Resume forwarded on request. Send inquiries to Box RLH, c/o NORTHWESTERN BANKER, 306 15th St., Des Moines, la. 50309. WANTED Good opening for young person with operations experience to work into installment loans and farm loans. Excellent chance for country banking career starting as assistant cashier. Should be agriculture oriented. $12MM growing bank in central Minnesota dairy area (town population—1,000). Salary open, good fringe benefits, profit sharing pension plan. All replies confidential. Write Box LLL, c/o NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. When you need a little help call us on our toll free wats number 8 0 0 - 362-1615 EDDIE A. WOLF BANKERS PERSONNEL, INC. Banks: Let us help you solve your people problems. We maintain a substantial file of experienced personnel at all levels. Contact us fo r help w ith your personnel needs. Banking personnel: Advance your career. Note these attractive opportunities: Comm. Lend. O ff.— All levels of experience needed. MN.. W l., IA. Jobs #608. 583, 576. $15,000 - $25.000 Trust O ff.—Variety of positions from starting up new dept, to managing m ulti-bank operation. IA.. NE., ND., MN. Jobs #635. 617, 598, 540. $12.000 $25,000 Cashier— Variety of positions from setting up operations for new bank to managing operations in larger bank. W l., MN. Jobs #590, 624. $12,000 $20,000 Ins. Mgr. — Licensed in all lines; some banking helpful. MN., SD., IA. Jobs #618, 601,634. $12,000 - $14,000 Lend. Off. — Experienced in real estate and ag. lending. MN. Job #536. $15,000 - $18,000 Contact us in com plete confidence regarding these of other em ploym ent opportunities. United National Bank, a statewide South Dakota branch banking system, is seeking two aggressive self starters for loan officer positions in both our Rapid City and Sioux Falls office. Excellent salaries and fringe benefits with a rapdily growing bank th a t offers opportunity for advancement. Installment Loan Officer An experienced consumer lender is required for this position with a minimum of three years commercial bank background in installment lending. Should have in depth knowledge of consumer credit, marketing and collec tions at both the direct and indirect lending levels. È if/ Y 'Y' Y 4 Jk;. VL A A »4 » JD Real Estate Loan Officer A results-oriented individual is needed for this newly expanded position. Applicant should have a minimum of five to seven years experience in all phases of real estate lending. The ideal candidate should have an extensive savings and loan or commercial bank real estate lending background. Reply in strict confidence in writing to: James E. Barry, Senior Vice President, United National Bank, 14 St. Joe St., Box 2290, Rapid City, S.D. 57701, PH: 605/343-9230, or Loren D. Gerleman, Vice President-Cashier, United National Bank, P.O. Box 1088, Sioux Falls, S.D. 57101, PH: 605/336-9206. 4 A Y BANKERS PERSONNEL, INC. 245 Marquette Avenue M inneapolis, M inn e so ta 55401 (612)-338-8111 SERVING PROFESSIONALLY Bonking, Finonciol & Business Personnel lowo end Notionwide CAPITAL PERSONNEL SERVICE 2 0 4 Securities Bldg. 5 1 5 -2 8 3 -2 5 4 5 Des Moines, lowo 5 0 3 0 9 WILLIAM B. RUSSELL G. GREGORY S. GERALD t GREAVES PLAGER WOLFE MURPHY Correspondent Bank Department k" Central National Bank & Trust Company DES MOINES (515)243-8181 MEMBER FDIC * POSITIONS AVAILABLE H'- L O C U S T AT S IX T H /F IFT H & G R A N D /3 5 T H & IN G E R S O L L / W EST D E S M O IN ES A BANKERS WANTED COMMERCIAL REAL ESTATE LOAN OFFICER— Must have 3 years experience, including interim financing. (Iowa). INTERNATIONAL DEPT. HEAD— Mature, heavy exper ience. Some travel in midwest. SENIOR OFFICER— For rural bank about $10MM. Must be strong In commercial lending in Iowa or Nebraska. SENIOR OFFICER— For rural Kansas bank; start January, 1976. CASHIER—Opportunity to learn commercial lending in $20MM Kansas bank. CEO— Prefer suburban St. Louis experience. SENIOR AGRI-LOAN OFFICER—W ith correspondent banking experience. SENIOR COMMERCIAL LOAN—Suburbank M issouri; prefer large bank experience. AGRI-LOAN—Several spots; some prefer touch of operations experience. Tellers, credit clerks, proof operators, secretaries, adm inistrative assistants, etc. Bank experience required. “IT TAKES A BANKER TO KNOW ONE” TOM HAGAN & ASSOCIATES Box 12346, N. K. C., Mo. 64116 (816) 474-6874 Vol. 4 No. 14 Northwestern Banker Newsletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, j Digitized forDes FRASER Moines, Iowa 50309. Subscriptions 25 cents per copy, $6 per year. Second class postage paid at Des Moines, Iowa. Address all ' https://fraser.stlouisfed.org mail subscriptions, changes of address (Form 3579) manuscripts, mail items to above address. Federal Reserve Bank of St. Louis -4 <M , Xi < A:
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