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Vol. 12 No. 36

Des Moines, Iowa

December 26,1983

1984: A Blinker’s View
President, Robert Morris Associates,
and Executive Vice President,
American National Bank and Trust
Company, Chattanooga, Terni.
HE GEN ERAL consensus is
that for the full four quarters of
1984, the econo­
my will continue
to improve grad­
ually from its
present status.
T h e ra te o f
growth will not
be as aggressive
as other recov­
eries have been,
yet, with a rath­
er static and low
rate o f inflation, the sustained
growth will be relatively solid. In­
terest rates should follow in tandem
with the inflation rate, and, with a
continued strong monetary policy,
should fluctuate within 10%-15% of
present levels, in either direction.
The fiscal policy, wherein large
budgetary deficits are planned,
could have an im pact on several sec­
tors o f the econom y. Yet, relative to
the total income and expense stream,
the overall deficit burden is not
considered by some to have a very
strong influence. Perhaps the pub­
lic’s reaction to that and the rate of
inflation will be a determining factor
in the consumer sector as to con­


sumer spending or saving.
Now there could be much rhetoric
on each o f the various component
parts that give rise to the economic
cycle and/or cycles. Government,
and private spending, the money
supply, monetary and fiscal policy,
along with real gut feelings of the
present and future are some o f the
econom ic areas that are receiving
attention as the econom ists suggest
what may happen in 1984.
Corporate borrowings collectively
today are static and are expected to
increase slowly over the next year.
A s corporations see the need to ex­
pand, there will be more loan de­
mand, either term or short-term, de­
pending on the com panies’ interpre­
tations o f the interest rate expecta­
tions. Industry now has unused ca­
pacity in many sectors. If technol­
ogy in those sectors is already state
o f the art, then additional capital ex­
penditures may not be needed in the
near future. A t best, with the many
alternatives to financing either capi­
tal expenditures or short-term
needs, bank borrowings will in­
crease. But loan demand is not ex­
pected to be exceptionally strong.
Corporate executives have found it
profitable to operate at subsistence
levels of inventories, receivables,
bricks and mortar, equipment and
machinery, and human resources.
This awareness will prevail.
Unemployment will, and should,

continue to show m odest declines
but will remain high by historical
standards. The figure suggested for
unemployment for late 1984 is 8%8/4% . The decline will come about
as industry absorbs productive hu­
man resources which are needed on­
ly at subsistence levels o f opera­
tions, and the level o f unemploy­
ment will be slow in reacting during
Consumer spending will increase
as the econom y recovers due, in
part, to real needs created by ab­
stinence during the economic decline.
Alternative and innovative con­
sumer financing in housing and
transportation will add incentives to
further an increase and should be
reflective—lag time considered—in
those industries.
And on and on one can go—into
the government and the interna­
tional arenas. A ny discussion o f the
econom y for the future must be tem­
pered with “ all things being equal,’ ’
and that’s the scenario we’ve ob­
served. One or several outside in­
fluences could cause a quick, mid­
course correction in any forecast for
1984. These include, but are not lim­
ited to, an international crisis, either
political or military; excessive un­
rest due to overseas loans and cur­
rencies; a m ajor im pact caused by a
change in technology; or a com plete
misalignment of monetary and fiscal
A s stated earlier, recovery will
continue. Borrowings will increase

where common transactions
are handled uncommonly well.



1 3th & M S tre e t • L in c o ln , N e b ra s k a 68501 • M e m b e r, F .D .I.C .
Federal Reserve Bank of St. Louis

Norwest Bank Des Moines, N.A.
Call (515) 245-3131 or toll-free (800) 362-2514


Member FDIC

Team work:
one of the reasons
we're firs t in Iowa.
Bernle Kersey

M ark Conway

at a rate which should mirror in­
terest rates, which will remain with­
in certain constraints brought about
by monetary control. In other
words, expect more o f the same for
1984 as we’ve experienced in 1983.


Three Midwestern Automated
Clearing Houses to Merge
Three automated clearing house
associations in the M idwest—MidAmerica Payment Exchange, St.
Louis; M id-Am erica Autom ated
Clearing House, Kansas City, and
A rkansas A u tom ated C learing
House, Little Rock—have agreed to
merge, form ing the sixth largest
automated clearing house associa­
tion in the United States.
The new organization will be

known as Mid-America Payment
Exchange (M PX) and will be head­
quartered in Kansas City, with a re­
gional office in St. Louis.
Executives o f the threee associa­
tions said they expect operational
and legal aspects o f the merger to be
com pleted during 1984’s first quar­
ter. John Borden, executive director
o f Mid-America Autom ated Clear­
ing House, will be president o f the
merged group and will manage its
Kansas City headquarters office. C.
Thomas Jeffrey, executive director
o f the current Mid-America Pay­
ment Exchange headquartered in
St. Louis, will be executive director
of the new organization and will
head the St. Louis regional office.

Iowa News
Credit Life Licensing School will
be held January 23-24, with exami­
nations scheduled for the 25th, at
the Iowa Bankers Insurance Ser­
vices, Inc. office located in the Fi­
nancial Services Building in Des
Registrations must be received by
January 10. Contact Jeanette M. El­
lington at 1-800-532-1423 or (515)

to make MNB
work for you.
Toll free
1- 800- 332-5991

National Bank IS I
Member F.D.I.C.

Federal Reserve Bank of St. Louis

B E L L E V U E : A ndrew S avin gs
Bank officially opened its new Bel­
levue office with open house cele­
brations December 1-4. Application
was made for the charter m ove in
April o f 1982, with approval being
granted in October, 1982. Tem­
porary quarters were set up in the
building next to the building site in
April of this year. Over 1,800 at­
tended the bank’s open house on
Sunday, December 4.
C A R P E N T E R : Cedar N ational
Bank received approval recently to
m ove its main office to 345 W est
Fourth Street in St. Ansgar and for
a branch office o f the bank to be lo­
cated at its original office location
on main street in Carpenter.

CLARION: Warren E. Claussen re­
cently joined First National Bank as
assistant vice president and com ­
pliance officer and Doyle Van Dyne
has joined as agricultural loan of­
ficer. Mr. Claussen form erly was
with First National Bank in Waverly as assistant vice president. Mr.
Van Dyne has been serving as
branch manager o f Production Cred­
it Association in Sigourney.
DES M OINES: Warren Ferguson,
68, died December 16 o f a heart at­
tack. Mr. Ferguson served as presi­
dent o f Hawkeye-Capital Bank &
Trust, form erly Capital City State
Bank, until his retirement in 1975.
LOW DEN: Duane L. Lasack has
been prom oted to executive vice
president and M am ell E. Scheeper
to ag representative and vice presi­
dent at American Trust and Savings
Bank o f Lowden. Mr. Lasack joined
the bank in 1974 and Mr. Scheeper
joined in 1961.
ON A W A : Gary L. Grote has been
elected president o f Onawa State
Bank. He succeeds Cliff Young, who
will m ove to chairman o f the board.
Mr. Grote had been serving as seni­
or vice president in charge o f loans
for Hawkeye Bank & Trust o f Sioux
City. He has 18 years o f banking ex­
SIBLEY: First National Bank of
Sibley has elected Lila F. Hatting to
the position o f vice president. Ms.
Hatting, a 20 year employee of the
bank, manages the bank’s investor
center and real estate loan depart­




SIBLEY: D. Duane Crockett, 60,
vice president and cashier o f Sibley
State Bank, died November 23. Mr.
Crockett, who been battling cancer
for the last year-and-a-half, began
his career with the bank 31 years
ago as a bookkeeper.
SIOU X CITY: First National Bank
has announced the prom otion of
Doug Schmidt to vice president and
com m ercial lender and Richard
Nooney to assistant vice president
and real estate department mana­
ger. Since joining the bank in 1978,
Mr. Schmidt has served as cor­
respondent banking officer. A 30
year veteran in lending, Mr. Nooney
has served in previous capacities in
consumer lending and consumer
credit counseling.
VINTON : Douglas P. Johnson,
president and chief executive officer
o f the State Bank o f Vinton, recent­
ly announced the appointment of




Dennis P. W eiss as vice president
and manager o f the bank’s agricul­
tural loan department. Mr. W eiss
had been serving at Hawkeye Bank
and Trust in Eldora since 1977.

An important new profit center
for your bank:

Nebraska News
DW IGH T: LaVem Fortik has been
named president of the First State
Bank o f Dwight. Mr. Fortik also will
continue as executive vice president
of the Bank of Brainerd, which he
joined in 1966. He has worked in all
areas o f the bank throughout his
17-year banking career. He also is a
1982 graduate o f the agricultural
credit school held in Ames, Iowa.
LINCOLN: First National Bank &
Trust Company received approval
from the Comptroller o f the Curren­
cy to open a branch office at 48th &
Van Dorn Streets in Lincoln.
OM AH A: Prom oted to vice presi­
dent at Omaha National Bank were:
Stephen R. Lundholm and Jerome
Schumacher. Mr. Lundholm joined
the bank’s estate and trust division
as an assistant trust officer in 1975
and currently manages the division’s
business development department.
Mr. Schumacher joined the bank in
1959 as an accountant and currently
serves as a senior securities analyst/
portfolio manager in the investment

Minnesota News
M IN NEAPOLIS: On December 7,
F&M Marquette National Bank un­
veiled for the first time its extensive
collection o f antique savings banks.
The exhibition, entitled A Penny
Saved: A H istory o f Mechanical
Coin Banks, 1860-1935, will run
through February 4, 1984, at the
Skyway Gallery, F&M Marquette
National Bank, Sixth Street and
Marquette Avenue. Hours are 8-5,
M onday through Friday.

Wisconsin News
W AU K ESH A: Earlier this month,
the Waukesha State Bank opened a
branch in the General Electric Medi­
cal Systems Group headquarters
com plex here. The branch will serve
approxim ately 2,000 GE employees,
and is the first branch opened by the
bank. It is also the first branch bank
to be opened in an industrial com ­
plex in the state.

North Dakota News
The N orth D akota Bankers
Association has scheduled a Bank­
ruptcy & Collection Seminar to be
Federal Reserve Bank of St. Louis



Leroy Bell or
Milt Hennick

a computerized
local billin^credit service

National Bank of Waterloo
315 East 5th St. • W aterloo, IA 5 0 7 0 4
held at the Ramada Inn in Grand
Forks on February 8, 1984.
Registration will begin at 8:30
a.m. and the seminar will run from
9-4:30. Faculty for the seminar are
W illiam R. M apother and Mary Kay
Lush. Mr. Mapother has his docto­
rate o f law degree from the Universi­
ty o f Virginia and previously served

Member Federal Reserve System FDIC

as a judge in Louisville. He has writ­
ten several books and articles. Ms.
Lush is director o f the Creditors
Law Center and is a graduate o f the
University o f Louisville.
For more information contact
North Dakota Bankers Association,
P.O. B ox 1438, Bismarck, N.D.

C iticorp A cquires First Federal S&L,
I BA Expresses D isappointm ent
HE LEAD ERSH IP o f the Illi­
nois Bankers Association ex­
pressed disappointment at the news
that the Federal Home Loan Bank
Board has given perm ission for Citi­
corp to acquire First Federal Sav­
ings and Loan Association o f Chicago.
The acquisition o f the multi-bil­
lion dollar, 61-branch institution by
the nation’s largest banking com­
pany marks the latest step in Citi­
corp’s interstate expansion program.
IB A President Donald R. Lovett
noted that “ since bidding for owner­
ship of First Federal began last June,
our Association has vigorously sup­
ported a course o f action which
would permit the institution to re­
main locally owned. W e have felt
that such an outcom e clearly would
represent the m ost favorable cir­
cumstance for the com m unity.’ ’
Mr. Lovett, president o f Dixon
National Bank, indicated that the
IB A would pursue a dual course of


action in an effort to insure that the
eventual outcom e will be in the best
interest o f the custom ers o f First
Federal and the state o f Illinois.
“ First, our attorneys have been ask­
ed to investigate the possibility that
the acquisition violates state anti­
trust laws. In this regard we will be
in touch with Attorney General Neil
Hartigan’s office. Additionally, we
will stay in close communication
with officials of the Federal Reserve
Board, since it appears that final ap­
proval o f the acquisition rests with
that agency.”
A s first reports o f the FH LBB’s
decision were received, the IB A be­
gan contacting various members of
the Illinois Congressional delegation
to express dismay over that action.
Many o f these individuals expressed
similar feelings, and promised to
make their sentiments known to
Reagan Adm inistration officials and
representatives at the FHLBB and
Federal Reserve.

Professional ...
Call Mark Christen for
any correspondent service.
Call toll free (800) 622-7262

Valley National Bank SÜ


Member FDIC

Portable Modular Bank Building

Wishing You A
Prosperous 1984

Northwestern Banker
Rates are $5.00 per line per insertion. Add $3.00 for file
letters per Insertion. Identity of file letter advertisers
cannot be revealed.
306-15th Street • Des Moines, Iowa 50309
Phone 515/244-8163

Today's Research Brings
Tomorrow's Cures

COMMERCIAL LOAN OFFICER—$30 million community
bank located in the NW corner of Illinois. Minimum 5 years
experience. Salary commensurate with background. Good
benefit package. Send resume and salary history to file
VBO, c/o Northwestern Banker.
COMMERCIAL LOAN OFFICER— Requires degree plus 3
years commercial loan experience. Some operations ex­
perience helpful. Salary open. Contact Steven L. Afdahl.
E.V.P., Citizens National Bank, Boone, IA 50036. Phone

G e n e r a l B a n k E q u ip m e n t I
S y s t e m s , In c .

RR 45, Box 115
Hiway 7 3 ,3 1/2 Miles North of Int. 680
Omaha,.Nebraska 68152

Lease* Rent• Buy

If you would like to evaluate your career, my
clients across the country have a wide range
of needs in operations, lending, and trust.
Salaries are in the $20-80,000 range. Clients
pay our service charge. Call or write:
Walt Heyne, Dunhill of Fayetteville
Box 1570, Rogers, Arkansas 72756
Phone: 501/636-8578

St. Jude Children’s Research Hospital is a
national resource not just for today, but for
tomorrow. Children come to St. Jude to re­
ceive the best available care, whether for
leukemia, other childhood cancers, or one
o f the rare childhood diseases being
studied here.
St. Jude Hospital continues its search so
tomorrow’s children can live. St. Jude offers
hope to all children, everywhere, regardless
o f race, religion or financial condition.
Please send your tax-deductible check or
request for information to St. Jude, 505 N.
Parkway, Box 3704, Memphis,TN 38103.

vice maintenance agreement. Home Trust & Svgs. B
Osage, IA. Phone 515/732-3763.
NCR 499 POSTING MACHINE. Presently under main
ance. Phone 319/728-2226.
BANK MICRO COMPUTER PROGRAMS—Apple (tm) l\PC/Franklin Ace and other micro computers. We are di
butors for over 50 bank programs. Send/Call for comp
list. Phone 308/384-5995. Bankers Electronic Equipn
Inc., 380 N. Walnut, Grand Island NE68801.

D a n n y T h om as, Founder



“ Successful Banking is Quality Personnel”
Eighteen years banking experience serving as
president of rural and metropolitan banks enables
me to find the “ right” banking position for you as a
banker or the “ right" officer for your bank.

TRUST OPERATIONS— manage all trust operations
small department located in major midwestern urban a*

located within 30 miles of large metro area. Requires
yrs. agri loan experience.

D O N -S cH O O LE R k

COMMERCIAL LOAN—$100MM suburban bank affilis
with major multibank holding company. Degree and cc
mercial lending experience in large bank desired.

2508 East Meadow • Springfield, Missouri 65804

REAL ESTATE LOAN—supervise all lending functions
$200MM S&L. Ten yrs. or more experience required. O


__________ “ Employment Service”____________

(^HoCcisX and <^f±±oaiai£,±
Bank Consultants
Specializing in Bank Acquisitions
P.O. Box 450 405 Main Ames, Iowa 50010

D onald E. H older , Principal

One, two and three bedroom units for
sale or rent. Most with hot tubs.
Phone 1-800/922-2590.
Dwayne Smith
Box S
Dillon, Colorado 80435

ASST. CONTROLLER— large suburban bank desirer
dividual with 1-2 yrs. financial institution experience
accounting or finance degree.
Additional opportunities available in midwestern bat
All inquiries confidential.

2024 Swift - Box 12346
North Kansas City, MO 64116
“ Serving the Banking Industry Since 1970”

Vol. 12 No. 36 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 3C<
Fifteenth Street, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $18.00 per year. Second class postage paid r
Des Moines, Iowa. Address all mail subscriptions, changes of address (Form 3579), manuscripts, mail items to above address.
Federal Reserve Bank of St. Louis