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Vol. 13 No. 13

July 16,1984

Des Moines, Iowa

A t Dakotas Centennial, Malcolm Forbes Says:

Lower Interest Rate Is Key to Long-Term Stability
OWER interest rates will bring
stability to the American and
in t e r n a t i o n a l
business com ­
munities and are
achievable now,
a c c o r d in g to
Malcolm “ Steve”
Forbes, Jr., chief
executive officer
of Forbes, Inc.,
and senior editor
of Forbes Maga­
zine, New York.
Speaking before the joint Centennial
Convention of the North Dakota and
South Dakota Bankers Associations
at The Broadmoor in Colorado
Springs, Colo., Mr. Forbes stated:
“ You never have low interest
rates and a stable economy without
gold backup. That is attested to by
our own economic history—post
Civil War, ‘20s and post ‘60s. It
sounds crazy to say we can have in­
terest rates of 5, 6 or 7 percent; if we
do, we'll save $50 to $70 billion a
year on interest on the public debt
and we wouldn’t need to cut Social
Security and other programs.”
He takes issue with Fed Chair­
man Paul Volcker’s method of con­
trolling the economy, stating, “ Mr.
Volcker takes his laudatory press
clippings seriou sly.” He said
“ Economists fear inflation is return­
ing, but are overlooking the fact

that we can cause deflation.” Later,
he said “ the Federal Reserve has no
reliable gauge, no compass to tell
them when we have too little or too
much money. That’s the same as a
carpenter using an elastic yardstick.
Until they get it, interest rates will
remain unnecessarily high. The ulti­
mate solution will be to go back to
the monetary procedures and policy
we had from the end of World War
II until the late 1960s. Before 1968
we had a ratio of $2 of debt to $1 of
real growth. Now it is $10 to $1. The
tinkering of the late 1960s led to our
economic downfall and President
Nixon gave it the coup de grace with
his wage-price control measure.”
Continuing, Mr. Forbes said,
“ Those who messed it up thought
the government should stimulate
the economy. Under the Bretton
Woods agreement we had 20 years
of unprecedented boom. The four pil­
lars of our prosperity were:
“ 1. The Bretton Woods agree­
“ 2. Fewer trade barriers—more
free trade.
“ 3. A tax system that encouraged
success rather than punishing it.
“ 4. Military stability. As a result
of the Viet Nam War we lapsed, and
now are trying to catch up.
“ The true source of prosperity is
people and economists lose sight of

Mr. Forbes gave these predictions
for the future:
“ 1. Interest rates one year from
now far lower. Mr. Volcker thinks
the economy is oblivious to the
poison of high interest rates. I think
the prime will be three points lower,
but still high by historic standards.
W e’ll see a surge in the stock mar­
ket—maybe 300 points. The time to
buy is when others sell, and that
break will come.
“ 2. Inflation will stay around 3%
or 4%, but the real threat is defla­
“ 3. The dollar value needs to go
down, but won’t go down in the
magnitude of former drops.
‘ ‘ 4. The election. President
Reagan will win, but the key is the
kind of campaign he runs. President
Eisenhower smiled, patted Nixon on
the back and won, but the Republi­
cans did not. But if President
Reagan campaigns like Roosevelt
and keys people to the future, then
he will be stronger and the Republi­
cans will do better and the nation
will do better.
“ Despite the next 18 months of
turmoil, the United States economy
has an underlying strength and re­
silience. Despite our recession, we
created 20 million new jobs—and the
(Turn to page 3, please)

Getting it done for you. ^


Warren Weaver

Ernie Yake


Vice Preside

Commerce Bank Kansasoty




Federal Reserve Bank of St. Louis

Telephone (816) Tld-OnWl



Norwest Bank Des Moines , N.A.

Call (515) 245-3131 or toll-free (800) 362-2514
Member FDIC


n m

T e a m w o rk:
one o f the reasons
w e’re firs t in Iowa.
Tom Quin Iin

Gary McClimen

Two Major Missouri
Bank Chains Plan Merger
An agreement in principle has
been reached for acquisition of Char­
terCorp, Kansas City, to be acquired
by Boatmen's Bancshares, Inc., St.
Louis, according to Donald N. Brandin, chairman and CEO of Boat­
men’s, and Gorden E. Wells, chair­
man and CEO of CharterCorp. Basic
terms of the proposed merger pro­
vide for payment by Boatmen’s for
each share of CharterCorp of $5 in
cash and nine-tenths (.9) of one share
of Boatmen’s common stock. At
June 30, CharterCorp had approx­
imately 7.8 million shares outstand­
ing. CharterCorp’s lead bank is First
National Bank of Kansas City.
Boatmen’s lead bank is Boatmen’s

to make MNB
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Toll free
1- 800 - 332-5991

National Bank 151

Member F.D.I.C,

Federal Reserve Bank of St. Louis

1980-82 and had been a member of
the board since 1947.
DES MOINES: Gary Frandson has
resigned as vice president in the cor­
respondent banking department at
Norwest Bank Des Moines, N.A., to
join First Interstate Bank of Ari­
zona, N.A. Mr. Frandson will be an
assistant vice president in the Mid­
town Commercial Loan Center in
downtown Phoenix.

SIOUX CITY: Max J. Larson has
been appointed president and chief
National Bank in St. Louis. Both executive officer of First National
holding companies have a statewide Bank. Mr. Larson was most recently
senior vice president of Brenton Na­
tional Bank of Des Moines. In that
position he was responsible for all
Iowa News
The Iowa Bankers Association is lending and commercial banking
sponsoring a Financial Planning In­ functions. He began his banking ca­
stitute to be presented in six parts reer at the Brenton Bank in 1971.
through the months of August to Prior to that time he served as vice
January at the Scheman Center in president and director of Federal
Discount Corporation.
The six areas to be covered at the
institute include: Introduction to Fi­
nancial Planning; Risk Manage­
ment; Investments; Tax Planning
and Management; Retirement and
Estate Planning, and Counseling
Skills, Computer Analysis and Case
The institute will run from 8:00
a.m. to 4:30 p.m. on August 28-30;
September 25-27; October 23-25; No­
vember 27-29; Januay 2-4, and Janu­
ary 29-31. Registration, which in­
cludes lunches, and textbooks ma­
terials, is $1,398 for members and
$1,750 for subscribers. Deadline for
accepting registrations is August 1.
For more information contact Lee
Schenk at the Iowa Bankers Associ­
ation in Des Moines.
CLARION: Mark S. Johnston has
resigned as cashier at Security State
Bank in Hubbard to take a similar
position with Brenton Bank & Trust
Company at Clarion. He will replace
David M. Olson, who resigned as
vice president and cashier at Clarion
to move to United Central Bank of
Cresco, N.A.
CLEAR LAKE: Roger Walston has
joined Clear Lake Bank and Trust
Co. as a vice president to fill the
vacancy created by the recent retire­
ment of Robert Grabinski, a long­
time employee of the bank. Mr. Wal­
ston formerly was assistant vice
president and ag rep at United Cen­
tral Bank of Greenfield.
CLEGHORN: Paul Egger, 79, passed
away on June 23. He served as presi­
dent of Cleghom State Bank from

Nebraska News
The Nebraska Bankers Associa­
tion is one of the co-sponsors for an
“ International Trade Documentary
Credit Workshop” for Handling
Documentary Credit Effectively to
be held at three different locations
through July and August. The work­
shop will run from 8:00 - 5:00 on Ju­
ly 19-20 at Lincoln-NBC Center, 3rd
floor, 13th & “ O” ; July 26-27 at
Omaha-First National Bank Center,
9th floor, 16th & Dodge, and August
2-3 at Grand Island-Holiday Inn,
1-80 & Hwy 281.
One of the two leaders for the
course is Brad Korell, vice president,
National Bank of Commerce, Lin­
coln. Registration can be made
through Susan R. Rouch, Nebraska
Department of Economic Development, P.O. Box 94666, Lincoln, Neb.
68509 or call (402) 471-4668.
LINCOLN: The state’s largest in­
dustrial bank, State Security Savings Co. of Lincoln, filed July 10
under Chapter 11 of the Bankruptcy
Code. Nebraska Banking Director
Roger Beverage said his first know­
ledge of the action was when a State
Security representative called him
late July 10 to inform him of the fil­
ing. He said the firm is “ pending re­
organization in the courts and has
not been declared insolvent. We are
working with potential purchasers.”
The most serious of the latter group
is a Nebraska financial institution.
Mr. Beverage said, “ My only concem is that depositors are protected















Supplement to Northwestern Banker Newsletter 7-16-84

W here success is
etched in quality.
he success of your bond
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best assurance of growth in earnings.
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Banking Division can m ake
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0 .n all possible manners.” To that LAKE ANDES: The Andes State carbon of Kennedy’s in the early

end, Mr. Beverage’s department has
been working to assist State Securi­
ty to obtain FSLIC coverage, for
which the company applied last De­
cem b er 19. “ W e’re ready to issue an
emergency charter as a savings and
loan,” Mr. Beverage stated, if re­
quirements can be met.


Minnesota News

Nearly 200 bankers from five
states will be attending the 18th an­
nual Midwest Banking Institute Ju(}y 22-27 at the University of Minne­
sota, Morris. The Institute is de­
signed for management level agri­
cultural bankers and is sponsored by
the state bankers associations of
S^innesota, Montana, North Dako­
ta, South Dakota and Wisconsin.
Central has named Michael G.
Schrantz as president, effective July
He succeeds William S. Solberg,
who has resigned his position to
take retirement. Mr. Schrantz pre­
viously served as executive vice
president and a member o f the board
cit the bank. He began his career in
1958 at Norwest Bank of Slayton.

Illinois News
^PHICAGO: Fred W. Hawk has
joined Lakeside Bank as vice presi­
dent in marketing. Mr. Hawk has
been associated with Harris Trust
and Savings Bank the past 26 years,
#n ost recently as vice president in
the commercial loan department.

South Dakota News
Members of the South Dakota
^Bankers Association met at The
Broadmoor in Colorado Springs early
this month and elected the following
new officers for 1984-85: Pres.—
John A. Haerter, chairman and pres­
id e n t, Farmers State Bank, Hosmer;
Pres.-Elect—Burdette C. Solum,
president, Norwest Bank Watertown, N.A.; Vice Pres.—B. Michael
Broderick, Jr., president, First
•American Bank, Canton; Immed.
Past Pres.—Charles W. Ekstrum,
president, First National Bank in
Philip. J.I. Milton Schwartz con­
tin u e s as executive vice president in
Federal Reserve Bank of St. Louis

Bank has announced the addition of
Sally R. Winckler to the bank’s staff
as assistant vice president. Ms.
Winckler has eight years of banking
experience, most recently with
American State Bank of Yankton.

North Dakota News
New officers of the North Dakota
Bankers Association for 1984-85,
elected at the 100th Anniversary
Convention July 7 at The Broad­
moor in Colorado Springs, are:
Pres.—Les Nesvig, chairman and
president, The First State Bank of
La Moure; Pres.-Elect—William M.
Sanger, chairman and president,
First Bank of North Dakota, N.A.;
Vice Pres.-Treas.—H arvey H.
Huber, president, Union State
Bank, Hazen. Mr. Nesvig succeeds
Darold Petersen, chairman and pres­
ident, Lakeside State Bank, New
Town. Harry J. Argue continues as
executive director, headquartering
in Bismarck.
FARGO: Thomas G. Schmallen has
been named executive vice president
of Dakota Bank & Trust Co. of Far­
go. He joined the bank in 1975 as
vice president and commercial loan
officer, most recently serving as se­
nior vice president.
MINOT: Jerry Hahn has joined
First American Bank & Trust as
vice president of commercial creditreal estate. Mr. Hahn was employed
by First American of Minot for over
17 years before resigning to accept a
position in Montana.

Montana News
BILLINGS: Norwest Bank Billings,
N.A. has promoted Wade L. Pehl to
assistant vice president. He joined
the bank in 1980 after graduating
from the Montana State University
with a BS degree in agriculture.
(Continued from page 1)
Japanese didn’t do that! This was
unprecedented in human history.
“ So, our real problem is making
government leaders realize they
should stay out of the way and not
try to tell people what to do. Presi­
dent Reagan’s tax cuts of ‘81 were a

‘60s, and the Democrats criticism of
Reagan is the same made by Repub­
licans of Kennedy. The same with
our military defense. It amuses me
that Teddy Kennedy doesn’t see the
resemblance. Even if someone on his
staff of 400 told him, he wouldn’t
understand it.
“ The American economy will
again take it’s rightful position as
the leader in the civilized world.”
When asked later what he would
substitute for the Fed’s “ lack of a
compass,” Mr. Forbes said, “ There
is no way to measure accurately the
money supply.” He mentioned, as
an example, the complications in­
volved in that process in connection
with the rapid influx and outgo of
OPEC money. “ I would ignore the
money supply. I would measure by
the gold price. We don’t need a clas­
sical gold standard, but just mea­
sure it against the world price. If it
hangs between $400 and $500,
there’s no worry. If it goes below
$400 the Fed should buy bonds; if
above $500, it should sell bonds.
Likewise, the Fed could increase
reserves below the $400 price and
decrease reserves if the gold price
goes above $500. The problem with
the money supply is that everyone
has a liquidity crisis— cash flow is
the problem.”
Earlier in his talk, Mr. Forbes
said the most serious problem is
that “ people in policy m a k i n g power
positions are traditionally hypo­
chondriacs—they can’t believe the
economy is so good or good enough
and they want to tinker with it. We
all read about the deficits but no one
talks about the fact that the deficit
will fall 20-25% this year, as it
should in this type of economic re­
covery. Our state governments
alone are building a $40 to $60 bil­
lion surplus. Our recovery will lead
other nations to recovery. What we
don’t read is that our exports get
better each quarter. Thanks to our
economy and low level of inflation
we have a nation that attracts in­
vestment. We read a lot about our
nation being a debtor nation because
of foreign investment, instead of
realizing we’re so healthy as to at­
tract this investment.”
He warned again that we should

4 “ look for politicians to want to per­
form malpractice on our economy.”
Mr. Forbes listed these four cau­
tions to watch:
“ 1. A dramatic fall in commodi­
ties (such as metals) prices—this
happened in the ‘ 20s, ‘30s and ‘80s
and recession followed.
“ 2. The same for real interest
“ 3. The fall of strong currencies—
Japan, Germany, etc., against the
American dollar.
“ 4. Finally, the stock market has
taken a tumble.
“ This is a recipe for turbulent
times ahead and if it is not heeded in
the next 12 to 18 months, then they
could cause another recession.”
But Mr. Forbes concluded that if
interest rates can be brought down
to reduce federal deficits by a great­
ly reduced interest rate load, and to
alleviate interest rate pressure on all
segments of business, then the longrange economy of the nation will
lead the world in a sustained re­
Rates are $5.00 per line per
insertion. Add $3.00 for file
letters per insertion. Identity of
file letter advertisers cannot be

or th w ester n



306 - 15th Street
Des Moines, Iowa 50309
Phone 515/244-8163

Ag Banking Positions
Let us help you. Call the ag lending personnel
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Employers pay us to hire the best.
CORRESPONDENT BANKER—for Metro area bank.
W ill call on country banks, do on site inspections and
new business development. Requires 3-5 years cur­
rent ag lending experience. $28-30,000. Excellent
#2fSENIOR LENDER—Supervise 4 loan officers and 3
clerical in a $50MM bank w ith $25MM in loans. Over­
see all loans w ith emphasis in ag (then comm.). Strong
workout experience needed. 8-10 years bank experi­
ence required. Mid $30,000’s. Good bennies and ad­
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Linda 515/394-5827
New Hampton, la. 50659



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CEO for Nebraska com m unity bank. Excellent opportunity
................................................................................ Salary open
Number Two person w ith strong ag lending background.
Requires loan and collection a bility in $50 m illion b a n k ...
..................................................................... Salary to $40,000
Investment Officer to handle $100 m illion bond p o rtfo lio ®
and $100 m illion in tru st a ssets......................... Salary open
Cashier for $38 m illion Iowa bank. Must know regulations,
make reports, handle item processing. . . Salary to $28,000
Ag Lender fo r Northwest Iowa com m unity bank. Must be
experienced loan person and like sm all tow n environment
..................................................................... Salary to $29,00()
Ag Lender for northern Iowa com m unity bank. Must be™
self-starter w ith p ossibility o f becoming second person in
tw o years............................................................ Salary open
Ag Lender for Southern Illinois bank o f $60 m illion. Bank '
or PCA experience. Must know cash flow and farm opera­
tio n ....................................................................... Salary open
Trust Officer to handle trust and estates and make up t a A
reports. Investment experience not required. Illinois loca­
tio n ................................................................... Salary $35,000
Commercial Lender fo r major Northern Iowa bank. Must
have practical commercial expe rie nce .. .Salary low $30's

set eastern Nebraska bank desires seasoned commercial
loan office r to manage portfolio. Salary commensurate
w ith experience. Contact 402/727-1100.
BRANCH MANAGER for north central Iowa bank located
in a sm all town. Must have extensive ag loan experience
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Confidential Consulting, including:
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27 Years’ Banking Experience
4020 Woodland Plaza #12
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515 225-1625

Banking, Financial & Business Personnel
Iowa and Nationwide


Financial Careers
CEO for bank in midwest city of 35,000. Must know com­
mercial lending and haveadm inistrative experience........a
................................................................................ Salary open™

714 U.C.B. Building, 515-283-2545
Des Moines, Iowa 50309

Ag Lender for community bank near Minnesota resort area.
........................................................................... Salary $30,000
CEO for smaller Western Iowa community bank. Will c o n ®
sider person who is currently number tw o ___Salary $35,000
Number Two person for northern Iowa community bank.
Must have potential to be EVP in three years. Salary to $35,000
Operations person for $60 m illion midwest bank. Must
have excellent expertise in data processing and conver­
sion ............................................................... Salary to $30,0 0 ( ^
Commercial Lender for large central Illinois bank. M u s ™
have three to five years experience in handling larger cred­
its ......................................................................... Salary open
Correspondent banker w ith ag degree and lending experi­
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W rite or call Malcolm Freeland or Cy Kirk at Freeland
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Moines, Iowa 50309. Phone 515/282-6462. Employer pays
fee. We have many other opportunities.

Omaha Computer Exchange 402-333-3203.

We are looking for someone w ith 3-5 years of com­
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correspondent banking experience (or extensive
AG lending experience) and a college degree with
at least 1 year of accounting. For more informa­
tion phone Mary Nerhaugen 612/341-6579.

6th & Marquette
Minneapolis, IVIN 55480

Estate Appraisals
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913 Locust
D es M oin es, Iowa 50309

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REAL ESTATE LOAN - requires 3-5 yrs. real estate lending
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Additional opportunities available in midwestern states
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2024 Sw ift - Box 12346
North Kansas City, MO 64116


“ Serving the Banking Industry Since 1970”

Vol. 13 No. 13 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, $15.00 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.
Federal Reserve Bank of St. Louis