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Vol. 1. No. 41 Des Moines, Iowa Will Fed Policy Help Control Inflation? The Federal Reserve will again have to be the policy arm that will try to control inflation, according to Henry Kaufman, partner and economist o f the investment banking firm o f Salomon Brothers. Speaking before the 53rd Midwinter Trust Conference o f the American Bank ers Association, Mr. Kaufman said that the New Econom ic Program, which had offered much hope and initial promise in the fight against inflation, is losing its effectiveness. At the same time, he said, the Administration has opted to increase Federal expenditures sharply and to in cur an extraordinarily large budget def icit o f nearly $40 billion in this fiscal year. “ If monetary policy must be the main bulwark against inflation, it will come just at a time when this burden should have been carried by the fiscal arm,” stated the Salomon Brothers econ omist, explaining that, “ in 1972 a sub stantial monetary expansion is a key prerequisite for financing the prospective credit demands.” The Federal Reserve, noted Mr. Kaufman, is faced with a problem o f at least three dimensions: (1 ) the monetary stance against inflation, (2 ) the size o f bank credit expansion, and (3 ) the trend o f money rates. “ The Fed’s emerging battle against inflation may incorporate two approaches,” stated Mr. Kaufman. One, he said, is to let markets tighten again. The other, is to intervene through selective allocation o f funds. “ The ag gressive liberalization o f fiscal policy will also encourage private borrowers to show a continued high preference for liquid ity.” This, Mr. Kaufman explained, is because only through what he called vigorous anti-inflation policies can the Government demonstrate that there is no need for large permanent liquidity. “ The failure to institute such policies as the Federal budget turns exceedingly expan sionary will prompt private credit demanders to persist with financing a large part o f their needs long-term,” he said. With regard to interest rates, the Salomon Brothers economist said that if the econom ic recovery continues, its sustainability will be challenged by the movement o f short and long-term rates. We can have rising short-term rates, reflecting the traditional demands on the credit market at this point in a recovery, without inflicting a setback on the long term credit markets only when our Gov ernment has put a bear hug on inflation, stated Mr. Kaufman. Because the Gov ernment has not done this, he said, any meaningful increase in short-term rates will disturb the long-term market. For the corporate bond market, it is highly likely, according to Mr. Kaufman, that a large part o f the total offerings February 14,1972 will com e to market in the first half o f the year, as corporations will press to continue to improve their liquidity in view o f the new liberal fiscal posture. Thus, he said, the yield on high-grade utility bonds may well flare up at least temporarily to within the 7% to 8 per cent range sometime this year. In the Governments market, Mr. Kaufman said, if a meaningful international monetary agreement should be attained this year, it may include a funding o f part o f the short-dated Governments held by the foreign central banks. “ Even if this fund ing does not involve the takedown o f marketable intermediate and long-term issues, but instead non-marketable obli gations, it would still provide con siderable technical strength to the Gov ernment coupon market,” stated Mr. Kaufman. In the municipal bond market, the economist said that continued sub stantial price volatility should also be a dominant feature. The task o f inducing commercial banks to continue to be massive buyers o f tax-exempts should be more difficult this year, noted Mr. Kauf man, adding that the banks will be buyers o f intermediate and longer dated issues only after loan demand and econ omic activity fall short o f expectations. Fed Rules Against Judicial Review The Federal Reserve Board has held that its rulings on what are permissible activities for bank holding companies under the Bank Holding Company A ct Amendments o f 1970 are not “ subject to judicial review.” There are so m any ways we can help you That's why over half the banks in Iowa are — M N B correspondents )M jjS /AFULL\ l SERVICE \0 A N K / V I s https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Forbes 01 berg Executive Vice President m MERCHANTS NATIONAL BANK CEDAR RAPIDS, IOWA ^ || ■ P-m fl f M E M B E R F D IC t advanced Gladys E. Manning to asst, v.p.; A. W. Schippers, Jr. to data proc. o ff.; Donald Deacon to customer service off., and Phil W inbom to ag rep. MUSCATINE: First National Bank had year-end deposits o f $39,961,229, up from $36,032,000 a year ago. Loans were $27,708,675, up from $25,517,000 a year ago. The bank was omitted from the list o f Iow a’s 25 largest banks on page 90 o f the February magazine issue o f NORTHWESTERN BANKER. It should have been listed as 23rd largest in the state. IOWA NEWS In an all-day debate over S.F. 1008, a bill designed originally to regulate bank holding companies and their growth in Iowa, the Senate on February 8 voted approval o f limited area branch banking. This is the first time a branch banking measure has ever gotten to the Senate floor for a vote. In approving S.F. 1008, the Senate voted for the following: open offices in Des Moines and vice versa, and Marion banks to open offices in Cedar Rapids and vice versa. These were the tw o examples cited on the floor during debate. • The Iowa superintendent o f bank ing would be granted additional author ity. Any application to federal author ities to form or expand a holding com pany in Iowa would also have to be filed simultaneously with the Iowa depart ment o f banking. Additionally, the bill gives the superintendent authority o f prior approval, as well as subsequent review, o f fees paid by a bank to a service affiliate or a major stockholder. •B ank holding companies may ac quire additional banks until the total deposits in these banks reach 8.5% o f the total time and demand deposits o f all banks in Iowa. • Bank offices would be permitted The bill was passed in substantially to offer full-service banking, providing the same form as presented by the the same services as available at the main legislative study comm ittee, except that bank. the limitation on holding company con • A bank office could remain in trol o f deposits was dropped from 10% operation even though a new charter is to 8.5%. The bill now goes to the House. granted for a bank in the same com BURLINGTON: Group 11 bankers will munity. • Banks in “ urban com plexes” of hold their annual meeting in Burlington 50,000 population or more could open at Hotel Burlington, Friday evening, Feb. their branches in their own city and 18 and Saturday morning, Feb. 19. Details are on page 98 o f February contiguous communities: issue. 50.000100,000, two o f f i magazine ces; 100.000- 200,000, three offices; over DES MOINES: Repr. Fischer and Sen. 200,000, four offices. By stipulating Brownlee have filed companion bills to these by population o f “ urban com prohibit financial institutions from giving plexes” rather than by cities, the bill away goods as an inducement to open, would permit West Des Moines banks to maintain or add to accounts. (H. 1109). Northeast Iowa Banks When you’re ready for it, make an appointment to see our computer compute. It can solve a lot of problems for your bank. When your bank needs this or any other service, call Bill Rickert or Ken Young. National Bank off Waterloo https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IOWA CITY: First Nat’l. Bk. has ad vanced Thos. J. O ’Brien to exec, v.p.; Mark Thompson to v.p., and Thomas Stockman and Neil W. Goeppinger, to a.c.’s. IOWA CITY: Iowa St. Bk. &.Tr. Co. has -A' NEW HAMPTON: Open house will be held by Security State Bk. in its new building Saturday, Feb. 19, from 10 A.M. to 4 P.M. Bankers are invited to attend. VINTON: John T. Strawn, Jr., 59, o f rural Vinton, has been elected pres, .o f the State Bk. o f Vinton, replacing Judge John W. Tobin, resigned. Mr. Tobin will be chmn. SOUTH DAKOTA NEWS CANTON: Application for a new bank to be known as Valley State Bank has been approved by the State Banking Commission. X % NEBRASKA NEWS CENTRAL CITY: Farmers Nat’l. Bk, has named Terry L. Trueblood as pres. He was formerly exec. v.p. R oy Dinsdale has moved from pres, to chmn. A DAVID CITY: David City Bk. has ac quired property adjacent to its bank. The present bldg, will be remodeled and an addition will be built on the newlyacquired property. A separate insurance agency is being developed. OMAHA: An application for a state charter for a bank at O ffut Air Force Base has been withdrawn. OMAHA: Eugene Zaloudek has been named pres, o f the Omaha State Bk. The bank received a charter in Sept, and is scheduled to open March 1. Mr. Zalou dek has been sr. v.p. at Southwest Bank in Omaha. M. Cooper Smith, a retired group manager for the J. C. Penney C o., is chairman o f the board o f the new bank. GOT AN IMPOSSIBLE DREAM? CALL BOB REED ® BANKERS TRUST CORRESPONDENT BANKING DEPARTMENT / SIXTH AND LOCUST / DES MOINES “ M A K ING im p o s s ib l e d r e a m s POSSIBLE” '"f) >r «i à é. united missouri bank THE N EW _________________________ CITY M A R K IN BANKING IS HERE. NATIONAL BANK AND TRUSTCOMANY Kansas City, Missouri Other board members are Perry S. Fran cis, J. J. Fuchs, Robert Miller, Frank B. Morrison, F. F. Nebergall, Grove Nelson, Marvin G. Schmid and Zaloudek. William A. Fraser is an associate director. O ur Correspondents ca ll him "H e lp fu l H o m er"... . . . that must be the reason why so many banks are letting Homer help them with their correspondent needs. MINNESOTA NEWS BLAINE: FDIC has approved the newlychartered Blaine State Bk. The charter was approved in July by the Minn. Dept, o f Comm. The bank, to be located at 101st and University Avs., will have beginning paid-in capital funds o f $600,000, the spokesman said. Applicants for the state charter were Herbert W. Bacon Jr., Fridley electrical contractor; William H. Beery, Wayzata bank official; Donald W. Harstad, Minne apolis general contractor, and Donald C. Savelkoul, Fridley attorney. CLARISSA: Dennis Feda was advanced to exec. v.p. and cash, o f the Farmers St. Bk. He will assume the active manage ment o f the bank from Pres. Merle Larson. FREEPORT: Arnie Hoeschen was pro moted to 1st v.p., and Gene Raeker was named v.p. & cash. Both men were elected directors o f Freeport St. Bk. STAPLES: Larry Klimstra has been named exec. v.p. o f the Staples St. Bk. He was formerly with the State Bk. of Foley. ILLINOIS NEWS CHICAGO: 24th Annual Consumer Credit Conference sponsored by I.B.A. Cons. Credit Div. will be Feb. 16-17 Palmer House. Congresswoman L. K. Sullivan, mem. House Bank/Currency Comm., will be dinner speaker. Bob Blackman, head football coach, U. o f 111.1 will address luncheon. Also featured will be panel discussions on future o f con sumer credit. CAPITAL CITY BANK Homer Jensen Correspondent Bank Officer East 5th and Locust • Phone 515/244-5111 Des Moines, Iowa 50309 Member Federal Deposit Insurance Corp. and Federal Reserve System CHICAGO: Drovers National Bank will begin its 90th year o f service and cele brate the unveiling o f its new “ allweather protected” drive-in/walk-up at an open house Feb. 11-18 in the South Side facility. will serve as chmn. Harold L. Simkins was named pres. Richard Wendt moves to cashier. CHICAGO: Chicago Bank o f Commerce, newly form ed merger o f Civic Center Bank & Tr. and So. East Nat’l. Bank has four new v.p.’s: Joseph Wahala, exec, v.p.; Fred E. Buettner, admin, v.p.; Al bert F. Ivan, v.p./cashier, and Richard B. Nuzzo, v.p. and sec. WYOMING NEWS FREEPORT: First National Bank named David D. Baer as exec, v.p./trust off. As t.o., he succeeds Kenneth P. Johnson, who resigned. Also prom oted were Thomas F. McFeggan to a.c. and Michael J. Lester to aud. SKOKIE: George O. Podd, Jr., exec, v.p., was named director and t.o. o f Old Orchard Bank & Tr. BURNS: Dennis Wallace, v.p. and cash, o f the Farmers St. Bk., has been elected pres. Lois Springer has been advanced from a.c. to cash. Henry Weber, former pres, is now chmn. o f the bd. PINE BLUFFS: T odd Gross, Jr. has succeeded his father, Charles C. Gross, as pres, o f the Farmers St. Bk. Mr. Gross, Sr. will serve as chmn. o f the bd. YALE SECURITY EQUIPMENT Sales and Service M cHENRY: Carol A. Sompel is asst. aud. at McHenry St. Bank instead o f auditor as stated in Jan. 31 NWB News. Full line of bank security equipment YALE BANK SERVICE DIVISION. Regional offices PERU: Mr. Fred Erlenbom, pres, o f First Nat’l. Bank since 1936 has retired but * H I Security Products & Systems F-» "TI *111 I9 6 0 W. 12th Place Denver, Colorado 80204 Phone: 303/825-8241 2066 Farnam Street Omaha, Nebraska 68104 Phone: 402/342-1821 We know the importance of your bank to your community. Cdrrespond with us. IOWA-DES MOINES NATIONAL BANK Bob Buenneke Member Federal Deposit Insurance Corporation Call on the "Performance Where the record speaks for itself in the administration of Employee Profit Sharing Trusts! FIRST NATIONAL BANK GL TRUST COMPANY OF LINCOLN ___________________________ 13th and M Street • Lincoln. N e b rask a 68501 • Member, F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis COULSON CANNON AND MUIR im NG T h re e o f o u r men on y o u r side at Sayer, Jr., was elected v.p. BISMARCK: Lee M. Stenehjem, v.p. o f State Bank o f Burleigh County Trust since 1959 has been named chmn. and chief exec, officer. Alvin Haas was pro moted to exec. v.p. and Milton Hochhalter to asst, cashier. CARSON: Board o f directors o f Grant County State Bank have elected: D. C. McVay, exec, v.p.; Gideon Eckman, cash ier; Edward Atkinson, asst. v.p./mgr. Flasher office; Mary Jane Emter, asst, cashier; and Ruth Wenger, asst, cashier/ asst. mgr. Flasher office. GRAND FORKS: Fred Orth, chmn., First National Bank, has announced the election o f Richard O. W old'as pres, and director o f the bank. For 14 years, Mr. Wold has been associated with the North western National Bank o f Sioux Falls, last serving as v.p. in charge o f market ing. COOPERSTOWN: L. A. Sayer, pres, o f Farmers and Merchants Bank since 1954 has retired but will remain chmn. o f the board. R oy L. Solberg is the new pres, advancing from v.p. Clarence Sandvik, v.p., will also serve as cashier. Leon A. □ I would like to sell my majority bank stock. □ I would like to buy majority bank stock. Contact: J. M a so n Fred Coulson Tom Cannon C ommerce Bank NORTH DAKOTA NEWS P le a se -A! H e nry, Pres. CHARLES E. WALTERS CO., INC. P. O. B o x 1313, O m a ha , Neb. 68101 Phone: (402) 553-6400 WANT ADS Rates 25 cents per word per insertion. Minimum: 12 words. NORTHWESTERN BANKER 306 15th St., Des Moines, Iowa POSITION AVAILABLE Installment lending officer with mini mum of five years bank lending e x perience for growing Denver sub urban bank. Must be aggressive and knowledgeable with degree in fi nance or business administration. Position offers excellen t future for right man. Salary open. Send detailed resume with picture to Robert H. Currier, Republic National Bank of Englewood, P.O. Box 1418, Engle wood, Colorado 80110. See You In Burlington When Group 11 of the Iowa Bankers A ssociation meets in Burlington on February 18-19, Max R oy and Cy Kirk, vice presidents of LaSalle National Bank, Chicago, w ill be on hand to greet their many customers and friends. FOR SALE Three NCR Savings Accounting Ma ch in e s —two purchased in 1964, one in 1968. Will post passbooks and ledger cards. Will s e ll reasonable. C on tact—Luther N. Mage Is sen, Cash ier, First Minnehaha National Bank of Minneapolis, 2716 East Lake Street, Minneapolis, Minn. 55406. Telephone (612) 721—2421. Need something fast? Call us on our toll free watts line 8 0 0 - 362-1615 ÚÚj ¿99 Central National Bank & Trust Company LOCUST AT SIXT H A V E N U E DOWNTOWN D E S MOU' HONE 243-Ö1H1. M E M B E R ED!( Dick Muir of Kansas City WANTED - USED EQUIPMENT Used Addressograph #1900, Graphotype #6381 and a Coin Safe, ap proximately 28 in. x 26 in. x 36 in. or larger. Contact Keith County Bank & Trust C o., Ogallala, Nebraska, 69153. Telephone (308) 284 —4063. ^ WANTED Operations Officer in $17 million bank, location Northeastern Montana. Send resume File NBM, in care of NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. TIRED of delays and high prices on your small quantity printing orders? Send us your next printing order. We’ ll save a lot of your money and even more of your time! Ü M' NORTHWESTERN BANKER 306 - 15th Des Moines, la. 50309 1,001 SALES LETTERS Ever considered writing a personal letter to 1,001 of your best cu s tomers, expressing appreciation and sellin g additional bank services? If the idea has merit, ask your personal secretary if she can do the job for you in a 40-hour week. If she c a n —raise her pay and take her out to dinner. You have a jew ell. An alternative for 101 or 1,001 is to use our Auto-Typist Service. We can do the job for you in a hurry with no pain, no strain, and no erasures ! Write for details. NORTHWESTERN BANKER 306 - 15th Des Moines, la. 50309 LOWER YOUR FARM LOAN RISK By sending him DOANE’S Farming For Profit, the hard-hitting, factfilled monthly newsletter that pro vides help in management, produc tion and marketing. Free sample subscription for 6 months. Write D. R . Gorr, DOANE Agricultural Ser v ice , Inc., Dept. 701, 8900 ManChester Road, St. Louis, Missouri 63144 Vol. 1. N o. 41 Northwestern Banker Newsletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 25tf per copy, $6 per year. Second c la s s 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 ¡¡P ^ ^
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