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December 17,1984 Des Moines, Iowa Vol. 13 No. 35 W h y ‘ Grass R oots’ Voices Needed Fact Number Four: once legisla ANKERS have plenty to do to day handling the growing tech tion is enacted, Congress is loath to nology and logistics of their own admit mistakes. Today, a broad idea — the idea business, trying to develop new sources of business, and coping with that banking is akin to public utili problem loans, regulations and new ties — is coming into fashion among populist academics and lawmakers. competition. However, the need also for local If that fashion grows into an extra banker continuing “ grass roots” in ordinary popular delusion, Congress put to their home area legislators is emphasized by this month’s “ Focus on Washington” prepared for the hanking press by Phil Battey of A B A ’s Washington staff. Here is his analysis of proposed “ lifeline” laws that would force banks to give away their services to selected groups (e.g., elderly) for reduced prices. * * * B OW — before the 99th Congress opens for business — every banker should give some hard thought to four facts of life that govern federal legislation and what these facts mean to banking in the very near future. Fact Number One: specific legisla tion always has its origin in some broad idea. Fact Number Two: there are two types of ideas, true and false. Fact Number Three: false ideas have just as much of a chance of sparking legislation as do true ideas. N could, under public pressure, force banks to give away or drastically underprice services, using the public utility concept as justification. This reasoning, radical as it is, prompted the passage of so-called “ lifeline” legislation in Massachu setts and is stimulating interest in similar legislation from New York to California. What can bankers do? Present the facts: Historically, the nation has never been committed to the notion that banks are akin to public utilities. The claim was never made in Con gressional debate over our federal banking laws. It was never made in regulatory actions taken by federal banking supervisors. No President ever said it. Indeed, no one familiar with the legal concept of the public utility would ever make the claim. It is true that banking provides services essential to the life o f the community and of the nation. But providing such a service does not a public utility make. Banking ser vices are one of the necessities of modem life, but so also are food and clothing. Yet the producers of these products are not subject to peace time control of a public utility nature. (Subsidies, of course, are another matter. It is the philosophical ques tion of whether private organiza tions should be required to provide free or below cost services to a specified group o f customers that is the issue here. Food stamps, which raise the purchasing power of reci pients, or voluntary senior citizen discounts programs sponsored by supermarkets are qualitatively dif ferent from laws forcing them to cut prices for a group of shoppers.) What justifies public utility regu- ASK JOHN MANGOLD to make MNB work for you. Toll free: 1-800-332-5991 Merchants National Bank isi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 Estate Appraisals Purchase of Collections Sale o f Rare Coins Reliable and respected service for over 20 years Used by bankers throughout the midwest B enE . Marlenee Coins 913 Locust Des M oines, Iowa 50309 515-243-8064 lation is not the necessity of the pro duct. In law and in economic theory, the distinguishing characteristic of a public utility is that certain enter prises are based on a technology of production or transmission which almost inevitably leads to a mono poly o f the market for their services. This characteristic is called a “ na tural monopoly.” Natural monopo lies do not arise from legal restric tion or financial power. The economists look at the concept in this way. In a natural monopoly, the diseconomies o f direct competi tion are so great that competition probably will not long persist. Even if competition does persist, it wastes resources because it involves un necessary duplication of, say, tracks or cables or electric power substa tions. Consequently, only a com pany enjoying a monopoly of the supply o f service in a given area can operate at maximum efficiency. Under public utility regulation, that “ natural monopoly” is formally re cognized and granted protection in exchange for price regulation of ser vices. All this analysis is pretty dry stuff compared to populist polemics. The populists never ask, much less answer, the question, “ Do banks have a natural monopoly over the services they provide?” Why? The answer is “ no.” Anyone who has kept up with events in the financial services in dustry over the last diecade would consider the question ludicrous. There are more than 15,000 banks in the country today. These banks compete with thrift institutions, brokerage houses, insurance com panies and others in offering bank ing services to the public. Thou sands o f competitors use the same type of technolgy that banks use to provide these services. In recent years we have seen not a decrease in competition, but a dramatic in crease. Banks cannot be “ akin” to public utilities — a “ natural monopoly.” Banks do not have a natural mono poly. Therefore, banks are not akin to public utilities, regardless of pop ulist arguments. The claim, however, makes for wonderful political rhetoric. If the public can be convinced that the na tion has long been committed to that notion, the job of forcing banks under strict pricing regulation of services will be much easier. Throughout the history of the United States, the critics of banking have charged that the industry must be regulated because bankers are too powerful, or too crucial to the economy, or too stupid, to be left to their own devices, although they never quite explained how a group of people in a democratic society can be powerful and crucial on one hand and stupid on the other. (Perhaps it is because consistency in political discourse is the hobgoblin of conser vatives who chose to appeal to the intellect rather than the passions). Never before have they charged that banking must be regulated to give Everyman the right to banking services. If this idea were to really catch fire, perhaps a reorganization o f the country’s entire price system would , Serving bankers quietly and efficiently. CAPITAL PERSONNEL SERVICE 714 U.C.B. Building, 515-283-2545 Des Moines, Iowa 50309 be in order? Perhaps the prices charged for all necessities should be based on the ability to pay? If these questions seem outra geous to you, think back. Ten years ago, the idea of “ lifeline” banking services would have seemed pretty outrageous, too! □ Iowa News Iowa Independent Bankers is sponsoring a seminar for Bank CEOs on January 16 in Des Moines. The seminar will cover bank holding company provisions for expansion of products and profits, tax provisions and new uses, estate planning up date for bank customers and owners, and specialized loan documentation. AM ES: Daniel L. Krieger has been named president of First National Bank effective the end of December. Currently executive vice president and trust officer, Mr. Krieger has been with the bank 25 years and also serves as vice president and a direc tor of Ames National Corporation, the bank’s holding company affiliate. He succeeds Robert W. Stafford, bank president since 1967 and chairman since 1978. Mr. Stafford will continue his association with the bank as chairman, and also serves as president and chairman of the holding company. DES MOINES: The proposed mer ger of United Central Bancshares, Inc. into Hawkeye Bancorporation has been terminated by mutual con sent of the boards of directors of both companies, according to a joint announcement made December 10 by Paul Dunlap, president and CEO o f Hawkeye, and Kenneth M. SPRENGER ROWLAND AND Getting MESSINA it done for you. ^ - Bill Sprenger 234-2625 Frampton Rowland 234-2485 John Messina 234-2486 Commerce Bank of Kansascky v MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Tp|pnhr»no K TÎA-Onnn TelephoneI f (816) 234-2000 v ® _ ® ^ ^ # # Supplement to Northwestern Banker Newsletter 12-17-84 W here success is etched in quality. he success of your bond ■ portfolio is a function of quality investments. After all, quality is your best assurance of growth in earnings. 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Box 226 o Kansas City, Missouri 64141 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Supplement to Northwestern Banker Newsletter 12-17-84 WE GUARANTEE * TH A T your tellers will enjoy using the SHARP BE2510L because it i s . .. — Easy to operate, yet it is — Loaded with features —Compact — Reliable — Light weight m You will also like the SHARP BE2510L because it is. . . —The best available yet — Sells for LESS $$$$ than the rest (Many $$$$ LESS) We have installed thousands in Minnesota. Ask for names of users near you. Hear what they have to say about the machine—the installation—the teller training provided by Banker’s Equipment Service. PURCHASE — LEASE — RENT *Use for 30 days— If your teller personnel are not satisfied with the SHARP BE2510L—We will issue a full refund! THINKING ABOUT ON-LINE? We also have the NEW Off-Line/On-Line SHARP BE6500. CALL TO D A Y: nu Pi 612-890-6661 Bankers Equipm ent Service 11561 12th Avenue South Burnsville, MN 55337 YOUR BANKING MACHINE SPECIALIST SINCE 1937 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pkübsi I THINKING ABOUT PURCHASING A NEW MICR encoder? Consider These Features. . . • S IN G L E PASS FULL FIE LD E N C O D IN G • FIE LD P R O G R A M M A B LE • C A R TR ID G E M IC R RIBBO N • C O M P A C T S IZ E -W E IG H T 16 LBS. • S ELF A L IG N M E N T O F FO R M S • P R O M P T IN G & ERROR M E S SA G E S • S O LID STATE E LE C TR O N IC S • UPG R A D A B LE (a) Add S o ftw a re Later (b) Add H ardw are Later (Printer, etc.) • P RICED U N D ER T H E C O M P E T IT IO N . Manufactured by Maverick Microsystems Distributed by: Bankers Equipm ent Service 11561 12th Avenue South Burnsville, M N 55337 CALL TODAY: 612-890-6661 YO UR B A N K IN G M A C H IN E S P E C IA LIS T S IN C E 1937 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Call on the “Experienced Professionals” Ready to meet your correspondent needs. first NAJONAL^nodln A FirsHer Company Myers, chairman and CEO of UCB. The proposed merger was first an nounced on July 20, 1984. Mr. Myers further announced that UCB will proceed with the First Interstate franchise, with July 1 as a proposed effective date. the bank’s consumer lending depart ment with responsibility for real estate and other personal instalment loans. Ms. Kilpatrick joined the bank in 1982. MARSHALLTOW N: Services were held recently for Wilson “ W .K .” Er vin, 78, of Marshalltown, who died of cancer. Mr. Ervin served as presi dent of Centerville National Bank from 1959 to 1969 and president of Marshalltown Commercial Savings Bank from 1969 until 1977, when he retired. Since that time he has served as a director for Hawkeye Bank Corp. CHICAGO: First Colonial Bankshares Corporation has completed its acquisition of Michigan Avenue National Bank, located at 30 N. Michigan Avenue in Chicago. Michi gan Avenue National Bank has as sets of $178 million. # Minnesota News ROCHESTER: Carla Kilpatrick, vice president of Norwest Bank here, has been named manager of 9 0 from Corn Belt after 13 years as president. The change at Corn Belt will enable Mr. Welch to oversee the planned merger between Corn Belt and The National Bank of Bloom ington, anticipated for early next year. A t that time Mr. Welch will be come chairman and CEO of the new merged bank and Harry Wilson, president and CEO of National Bank of Bloomington, will become president of the merged bank. Wyoming News CASPER: A t First Interstate Bank, Kenneth W. Simms has been ap pointed vice president of the com mercial loan department; and named assistant vice presidents were: Kelly A. Simms, real estate financing divi sion; Kimberle A. Macy, consumer loan department, and Gloria L. Lane and Bob Fankhauser, commercial loans. a packet of materials upon arrival at the local site December 11. That packet provided a 16-page program Financial Planning Is H ot Product outline o f six major points covered NE of the fastest growing ser The five-member team of experts by the panelists. Also included was vice and product areas in com assembled in Chicago, where their a 70-page compilation o f charts used mercial banking today—-Financial presentations were transmitted via during the teleconference and sup Planning—was the topic discussed satellite to each o f the remote areas. porting articles or other material December 11 in a one-day satellite Telephone lines from each of the re provided by the panelists. Other ma conference broadcast to 26 locations mote locations to the panelists at terials included printed pieces pro in the United States by the Ameri the Chicago studio afforded the op vided by Chemical Bank and the can Bankers Association. Several portunity for the audience to ask ABA . The latter included the issue of Competitech devoted entirely to hundred bankers were registered for questions. Each of the registrants was given “ Personal Financial Counseling.” the teleconference. O 0 BLOOMINGTON: James E. Welch, president, First National Bank in Champaign, has been elected presi dent and CEO of the Corn Belt Bank, Bloomington. Mr. Welch will resign soon as First National presi dent but will continue to serve on the bank’s board. He will succeed Harry M. Petrie, who is retiring Member, F.D.I.C. MATERIALS used during the A B A ’s Teleconference December 11 on “ F inancial Planning fo r the M iddle M arket” were reviewed in advance of the te le ca st by a m oderator at each o f the 26 local reception sites. At left, Marva McCarty, educ. mgr. fo r the Iowa Bankers Assn., m oderated the Des M oines m eeting attended by more than 30 bankers. P articipa nts and visu als were broadcast from a C hicago stu d io and displayed at the local site s on large screens and TV m onitors. At the o u tset, each of the local receiving areas was introduced. Photo at right show s the M innesota Bankers A sso cia tio n being introduced on the screen. S tate banker a sso cia tio n s w hich sponsored the teleconference, and the sites, included: C olorado (Denver), Illin o is (Chicago, D ecatur and Mt. Vernon), Iowa (Des Moines) and M innesota (Bloom ington). Also, the Kansas C ity AIB C hapter sponsored the teleconference in th a t city. A B A Teleconference Tells W hy • Illinois News • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POSITION AVAILABLE SENIOR VICE PRESIDENT—The individual will supervise all loan departments. Requires Bachelor’s degree plus minimum five years’ lending experience. Salary commen surate with experience plus excellent benefits. Excellent career opportunity. Contact: Steve Afdahl, President Hawkeye Bank and Trust, P.O. Box 4068, Spencer, Iowa, 51301. Member Hawkeye Bancorporation. Phone 712/262-1940.________________________________ (PA) AG LENDER—Position available for individual with ag lending background in $65 million bank in Grafton, ND. Ap plicant should have minimum of three to five years ag lending experience and strong business development skills. Send resume to: President, Norwest Bank Grafton, N.A., P.O. Box 580, Grafton, ND 58237. (PA) AG LOAN OFFICER—with three to four years banking ex perience. Must be familiar with microcomputers, cash flow, and documentation. Please send resume and salary requirements to: Eugene Schulke, Cashier, Corn Belt State Bank, Box N, Correctionville, IA 51016. (PA) SENIOR AG LOAN OFFICER — Salary to $50,000. Opportunity for life-time employment. Send resume to Board of Directors, Bank of Elgin, 2nd and Pine, Elgin, Nebraska 68636. Phone: 402/843-2228. (PA) AG LOAN OFFICER — Southeastern Minnesota. Immedi ate opening in $100 million bank to work with experienced ag lender in servicing large portfolio. Ag degree required. Salary open. Applicant should have 1 - 3 years ag lending experience. Send resume and salary requirements to: President, Norwest Bank Faribault, N.A., Faribault, Min nesota, 55021. (PA) FOR SALE TWO NCR 7750 MULTI POCKET PROOF MACHINES. Con tact Dale Froehlich. Phone 515/964-4293. (FS) BURROUGHS S-558 and S-595 SINGLE POCKET PROOF MACHINES. Both currently under maintenance agreement and in good working condition. Available immediately, price negotiable. Contact Mike Mattson at First State Bank, Fremont, Nebraska, Phone 402/721-2500. (FS) Positions Available AG LOAN OFF. - $95MM bk. in northern Illinois town of 30,000. Will be #2 in $10MM ag dept. Loans in good shape, and spend 20% of time in farm mgmt. and new bus. dev. Excellent advancement oppor. and full ben. pkg. Requires 1-5 yrs. ag lending exp. (Bk., PCA or FLB). 4 yr. ag degree, farm mgmt. exp. helpful. to $30,000 Confidential. Fee paid by employer. If you are interested in advancing your banking career, we will keep you informed of opportunities available and MAINTAIN THE CONFIDENCE YOU DEMAND. We do not use other recruiting ‘networks’ and no contacts are made on your behalf without your prior knowledge and consent. Our Ag Banking Specialists serve you in dividually, discreetly, and professionally. Fee paid by employer. Linda 515/394-5827 New Hampton, la. 50659 I Jean 515/263-9598 (T/W/F) 712/779-3567 (M/TH) Massena, Iowa 50853 dqn CAREERS, IN C . eJ AG BANKING SPECIALISTS Financial Careers TRUST OFFICER skilled in trust documentation. Central Iowa locatio n..........................................Salary to $30,000 CEO for southern Iowa bank. Requires 5 to 10 years experi ence. College graduate preferred........... Salary to $40,000 COMMERCIAL LENDER for major Iowa bank. Prefer 3 or more years experience in metro market. Plus college back ground ....................................................Salary to $40,000 COMMERCIAL LENDER for multi-bank group. Will head up $100 million loan portfolio....................... Salary to $50,000 NUMBER TWO person for $100 million plus bank. Requires heavy loan experience in larger bank . . . . Salary to $60,000 COMMERCIAL LENDER with real estate experience for major Montana bank; located in scenic area .Salary Open INSTALLMENT LENDER for Montana bank, located in larger city. Requires banking experience Salary to $25,000 AG LENDER with some limited operations experience for community bank in eastern Iow a........... Salary to $30,000 TRUST OFFICER for northern Iowa bank. Prefer person with legal degree to head up department-----Salary Open AG LENDER with 3 or rpore years bank experience and col lege degree for clean community bank in southern Minne sota ........................................................Salary to $35,000 COMPTROLLER/Accountant with three to five years exper ience needed by $300 million midwest bank...................... ...............................................................Salary to $30,000 POSITIONS AVAILABLE AG LENDERS - Need 2, S.E. Nebraska. $35K range. MARKETING - Degree. Need several years of banking or S&L experience in marketing. Omaha. $35-40K. COMMERCIAL LENDERS - Need 2. Degree. Need 3-5 years of strong commercial lending. Des Moines. $35K. Call or send resume to: Richard L. Beam, CPC GUMBERT EXECUTIVE EXCHANGE, INC. 11246 Davenport Street Omaha, NE 68154 Phone: 402/330-3260 We have many other opportunities. Call or write Malcolm Freeland or Cy Kirk at Freeland Financial Service, Inc., 1010 Equitable Building, Des Moines, Iowa 50309. Phone 515/282-6462. Employer pays reasonable fee. SKI COLORADO Stay within minutes of 4 major Colorado ski areas. Luxury and economy condomin iums and townhomes. Call: Dwayne Smith, Anne Marie or Sue at PARADISE PROPERTIES Toll Free 800-922-2590 Denver, 892-9367 or 303-468-5846. BURROUGHS L-3000 POSTING MACHINE, good condition. Contact Monte Grubbs, Phone: 308/235-3663. (FS) 1962 NCR POST-TRONIC POSTING MACHINE. Under service agreement till 1982. Not used since. Phone Curtis Gressman at 515/984-6211. (FS) DON-S C H O O LE R In AN D o V i ASSO CIATES "Successful Banking is Quality Personnel" If you would like to be informed of positions as they become available and if you are interested in chang ing your present position, send your resume or phone Don Schooler, 417-882-2265, 2508 East Meadow, Springfield, Missouri 65804. Information on you will be kept confidential until you are inter ested in a specific position. Eighteen years of banking serving as President of rural and metropolitan banks enables me to match you, technically and personally, with the right bank ing environment. POSITIONS CURRENTLY AVAILABLE Missouri, Iowa Oklahoma, Kansas, Arkansas, Illinois, and Nebraska METRO SUBURBAN PRESIDENT, $50mm bank .. ..........................$50,000 - $55,000 (Enc. Benefits) HEAD OF COMMERCIAL, $100mm + bank OPEN COMMERCIAL LENDER, $60mm bank, 12,000 population................................. $35,000 - $40,000 BANKING OPPORTUNITIES AG LOAN OFFICER — Expansion position in $100mm IL bank near the Quad Cities. Solid growth bank, minimal problem loans. Definite career advancement potential. $28-32K. COMMERCIAL R/E LENDER — Expansion posi tion in Progressive organization, Omaha. $25K. PRESIDENT, small bank, growth area, excellent lo c a tio n ......................................................OPEN #2 MAN, $35mm bank, small town $40,000 - $45,000 HEAD OF COMMERCIAL LENDING, $45mm bank Metro Suburb............................$40,000 - $45,000 HEAD OF OPERATIONS, $300mm Metro bank . . . ...................................................................OPEN PRESIDENT, $25mm bank, Agriculture oriented .. .......................... $40,000 - $45,000 For Prompt, Courteous, Professional Attention T o Y o u r S t a ffin g Needs, Call On Us. AG LOAN OFFICER — No. 2 in rural ag bank, cen tral NE. Ownership and/or CEO opportunity. $30-50K. Barbara J. Ritta PROFESSIONAL RECRUITERS, INC 6818 Grover Street, Suite 102 Omaha, NE 68106 Phone: 402/397-2885 Diane Evans 816/842-3860 R egency RECRUITERS, INC. POSITION WANTED ENTRY LEVEL POSITION in a bank. Will graduate from UNI in December with BA degree in Financial Manage ment. One year experience in commodity futures through coop education program. Worked extensively with hed gers and in conjunction with banks in setting up hedging seminars for farm clients. Very knowledgeable in options. Nick Evens, Box 618, Hudson, lA, 50643. Phone: 319/988-3506. (PW) COMMERCIAL LENDER, $80mm bank, 10,000 population................................. $35,000 - $40,000 HEAD OF LENDING, $120mm b a nk.................... .................... $50,000 - $55,000 B A N K IN G SP E C IA L IST S LENDING • TRUST • OPERATIONS PAPPAS & ASSOCIATES Confidential Consulting, including: LOANS—Ag & Commercial: Prob lems, Workouts, Documentation, Training Act now—-save Capital! Chris Pappas, Principal 27 Years’ Banking Experience . 4020 Woodland Plaza #12 West Des Moines, la. 50265 515 225-1625 1102 Grand Avenue, Kansas City, MO 64106 POSITIONS A V A IL A B L E SR. COMM’L LOAN - $100MM community bank desires ex perienced commercial lender with administrative ex perience to oversee all lending functions..............................$50K^ CEO • $35MM bank with majority of loan portfolio in Agri credits. Work out situation with strong capital position. .. ....................................................................................$45K PRESIDENT - small Agri bank with few classified loans. Previous administrative experience required..............$35K AGRI LOAN - branch situation. Minimum five yrs. Agri tending experience in bank environment required..........$35K COMM’L LOAN - prefer 5-7 yrs. commi lending experience in medium size community bank. Could be second officer within one year.............................................. ...........$35K Additional opportunities available in midwestern states. TOM H A G A N & ASSO CIATES 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970” Vol. 13 No. 35 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306 Fif teenth Street, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $18.00 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 a ™
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