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* V o l. 7 N o . 12 Des M o in e s , Iow a J u ly 1 7 ,1 9 7 8 Outlines 8-Point Attack on Inflation )» -» * NFLATION introduces an ele ment of deceit into most of our economic deal ings... We will not defeat in flation if we always take the short view... Cancer ignored does not be come station ary, and nei ther does infla tion. Inflation h . C . W A LLIC H ignored accelerates. These comments were part of the address delivered by Federal Reserve Governor Henry C. Wallich to students receiving their Masters of Business Administration degrees recently from the Fordham Univer sity Graduate School of Business. After delineating the problems and effects of inflation, Mr. Wallich offered this “ Plan for Action” : A long view is needed on inflation. It is a view very different from that of the politician, who is under enormous pressure to do quickly something that looks good. If the people will not instruct their elected representatives to do the things that are needed to end inflation, if they turn them out of office because the remedies take time and are temporarily painful, we will keep getting a little more I employment and output now at the expense of much more unemploy ment and loss of output later. And we will get more inflation all along the way, down to its ultimate consequences. We need to make the ending of inflation our first priority. That must be our overall policy. In the current circumstances, to imple ment it, we need to take a number of steps, some of which I shall list here. 1. We need to recognize that we are currently very close to full employment and accordingly must slow down the growth of the economy, gradually but firmly, to its long-term rate of 3 *4 - 3V4 % . 2. We must limit the pending tax cut to what is needed to offset the effect of inflation on income brackets, perhaps on the order of $10 billion. 3. We must work to bring the budget deficit for 1980 below $40 billion. 4. Monetary policy must prevent increases in money growth that would fuel inflation and must gradually bring the growth of the monetary aggregates down to levels commensurate with the real growth rate of the economy . 5. We must stop adding to inflation by government actions such as protectionism, regulation, Correspond witiithe^bank that can give you a lot of help for your money. IOWA-. nes/vvomes M ^ ** * farm price supports, minimum wage increases, and high govern ment construction costs. 6. We must promote competition, through anti-trust action, and productivity through tax changes that stimulate investment. 7. We must maintain as strong a dollar internationally as our balance of payments will permit. 8. We would be wise to adopt an incomes policy that employs the tax system and the market mechanism, free from the taint of wage and price controls, commonly referred to as TIP. The President's program of voluntary de-escalation of price and wage increases deserves every body’s support. But in our highly competitive environment, volun tary sacrifices on the part of labor and business have their limitations. If inflation is a moral problem, we require a moral solution; that is, a recognition that public policies had led to serious inequities affecting people in different and unequal ways, and a commitment to new policies that will correct the cumulative distortions and contrib ute to desired economic progress. The policies I have proposed require taking a long-run view of inflation. Nothing will stop infla tion overnight, and in the short run the gains will always seem dearly won. But without such a long-run approach, the damage will mount and the ultimate costs will escalate. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _ ^ M A NATIONAL BANK Member FOjG An Affiliate of Northwest Bancörporation George Milligan 1-800-362-2514 Banco® For Northwestern’s World of Service A good correspondent bank relationship is still built by good people. Yours and ours. Call me toll free . . . 800 332-5991 - Merchants National Bank Terry Martin Vice President Jerry Just Northwestern Bank Of Sioux City An Affiliate of Northwest Bancorporation Ba n c o Iowa News BEDFORD: Bedford National Bank recently opened its New Market Office, according to Bill Miller, vice president. A pork barbeque for the community highlighted the opening. BETTENDORF: Bettendorf Bank and Trust Co. has announced it will construct a full-service branch office at 53rd and Brady Streets in Davenport. BLOOMFIELD: Douglas Shanklin has been named assistant vice president of the Davis County Savings Bank. He comes to Bloomfield from the Wilton Savings Bank. Don Trehame has been promoted from assistant vice president to vice president of the bank. CHARLES CITY: Citizens Nation al Bank has announced the promotion of Craig A. Lynch to vice president and the appointment of Colin B. Robinson as vice president. Mr. Robinson formerly was with the First National Bank in Elbow Lake, Minn., as vice president. CORWITH: Richard Halverson has been promoted to vice president of the Corwith State Bank. Hazel Lenz and Daniel Vicker have been elected assistant cashiers. CRESTON: The promotion of Lee McNichols from cashier to vice president of the Iowa State Savings Bank has been announced by Joe Knock, president. He has been with the bank since 1970. DUMONT: R. L. Harrison, presi dent of the State Bank, has announced the following officer advancements: M. W. Thornburgh, senior vice president; Ruth Long, cashier; T. L. Harrison, assistant cashier and agricultural representa tive, and Sheril Brodbeck, assistant cashier. RED OAK: Roger Ehmke has joined the Montgomery County National Bank as an instalment loan officer. For the past year he has been with North Central Adjustment Co. in Red Oak. W ALNUT: Howard H. Hansell has joined the Walnut State Bank as vice president, succeeding Dwight Wuster who retired. Mr. Hansell formerly was cashier of the Farmer’s State Bank of Colesburg for eight years. Nebraska News CLARKSON: Helen M. Mastney has been named assistant vice president of the Clarkson Bank. She has been with the bank for 17 years. COLUMBUS: First National Bank and Trust Company has announced the appointment of John R. Scott as loan officer in the instalment lending department. He formerly was office manager of Postal Finance. DALTON: Funeral services were held recently for Lyle Rabe, president of the Dalton State Bank. Theodore Panas was elected presi dent of the bank. NORTH PLATTE: A hearing will be held August 4 in Lincoln on an application by American Security Bank to open a southside branch office at B and Jeffers, according to E. Dean Niedan, chairman. The facility, which could be completed within 60 days after approval is obtained, would include four inside teller windows, a drive-up window, two drive-up kiosks and additional office space. OM AHA: Cornhusker Bank of Omaha has changed its name to The Nebraska State Bank of Omaha. SPALDING: Spalding City Bank has announced the addition of Homer is ready to help you UNITED MISSOURI BANK OF KANSAS CITY, N .A . 10th a n d G ra n d • K ansas C ity, M o . 8 1 6 -5 5 6 -7 0 0 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC 151 Cedar Rapids. Iowa 52401 A BANKS OF IOWA' BANK ... w ith CCB’s full-service correspondent banking. Let Homer Jensen prove that we do your kind of banking. ~ CAPITALCITYMM Des Moines’ second largest independent bank. Main Bank East Fifth and Locust 50309 515/244-5111 Carleton D. Beh Co. _____ Investment Securities —V 1 Des Moines Building • Des Moines, Iowa 50309 • 515/288-2152 NEW ISSUE MOODY’S: “Baa-1” $1,700,000 OAKLAND OBLIGATION SCHOOL BUILDING BONDS General Obligation School Building Bonds Dated: August 1,1978 Denomination: $5,000 Both principal and semiannual interest (June 1 and December 1, first coupon due December 1,1978) payable at the office of the School District Treasurer, Oakland, Iowa. IN THE OPINION OF COUNSEL INTEREST ON THESE BONDS IS EXEMPT FROM ALL PRESENT FEDERAL INCOME TAXES, IOWA FRANCHISE TAX AND ALL PROPERTY TAXATION IN THE STATE OF IOWA. MATURITIES 6.00% $25,000 June 1,1980 5.00 $100,000 55,000- June 1,1981 5.00 60,000 June 1,1982 5.05 110,000 65,000 June 1,1983 5.10 65,000 June 1,1984 115,000 5.15 70,000 June 1,1985 5.20 120,000 75,000 June 1,1986 5.25 80,000 June 1,1987 5.30 125,000 80,000 June 1,1988 5.35 135,000 85,000 June 1,1989 5.40 150,000 90,000 June 1,1990 5.50 95,000 June 1,1991 5.60 ‘ Optional in inverse order beginning June 1, 1993 at 100%. 5.70% June 1,1992 5.80% June 1,1993 5.90% June 1,1994* June 1,1995* 6.00% June 1,1996* June 1,1997* June 1,1998* 5.70 5.80 5.85 5.90 5.95 6.00 6.00 LEGALITY TO BE APPROVED BY AHLERS, COONEY, DORWEILER, HAYNIE & SMITH, ATTORNEYS, DES MOINES, IOWA. Oakland Com m unity School D istrict is located in Pottawattamie County about 25 miles east of the Omaha-Council B luffs m etropolitan area. Oakland has always been known as a prosperous D istrict because of the quality livestock feeding industry. The Oakland Feeding Corporation, the largest in the State of Iowa, and the American Beef Packers Plant provide a ready cattle market for the surrounding area. Cattle m arketing, corn and soybean production have greatly added to the D istrict’s economy. Major employers in the D istrict include: American Beef Packers, 320 employees; Oakland Com m unity School D istrict, 57 employees and Northern Natural Gas, 40 employees. In addition, many residents com m ute to nearby employment in Omaha and Council B luffs. There are tw o banks located in the D istrict w ith deposits in excess of $34,000,000. These bonds are being issued under the provisions of Chapter 296, Code of Iowa, 1977, and were approved at a special election held May 16, 1978, for the purpose of constructing various additions to the existing high school building. In the opinion of counsel, these bonds are legal and binding general obligations of Oakland Com m unity School D istrict, Iowa, and all taxable property located therein is subject to the levy of su fficie n t taxes to pay the principal of and interest on the bonds w ithout lim it as to rate or amount. FINANCIAL STATEMENT Actual & assessed value of taxable property, 1977 $80,335,511 Direct debt, including this issue Total direct, overlapping & underlying debt Population, 1978 estimate: Area: 76,800 acres 2,600 2,080,000 2,327,923 Direct debt per capita: Total debt per capita: Direct debt per acre: Total debt per acre: Tax collections have approximated 102.3% of taxes levied for the past five years. We own and offer subject to prior sale and change in price and subject to our attorney’s approving opinion. The in fo rm ation co n tained in this circular is not g uaranteed, but is derived from sources w e d eem reliable and is that on w hich our purchase of these bonds w as based. O ffered sub ject to prior sale and ch ange in price. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $800.00 895.36 25.64 30.31 4 Michael Pfeifer to its staff. He will work in the insurance, operational and loan departments. WEST POINT: Layne L. Sander has been appointed agricultural representative of the First National Bank. He has been director of adult farm business management at Northeast Technical College in Norfolk for the past two years. Minnesota News BEM IDJI: First National Bank has announced the addition of Dennis L. Schlagel to its staff as commercial loan officer. He came from the Argyle State Bank where he was cashier since 1974. DETROIT LAKES: Phyllis Beyer has been elected vice president of the First National Bank. She joined the bank as a bookkeeper in 1960. FERGUS FALLS: N. R. Lake has been promoted to senior vice president of the First National Bank. GOOD THUNDER: The First National Bank has converted to a state banking institution and is now operating under the name of First State Bank of Good Thunder. MANKATO: Minneapolis busi nessman Irwin Jacobs has an nounced plans to buy four southern Minnesota banks owned by Daniel and Thomas Coughlan of Mankato. The purchase would give Mr. Jacobs controlling interest in the National Bank of Commerce, Mankato; Valley National Bank, North Mankato; The Citizens State Bank, St. James; and the Farmers State Bank, Sherbum. MINNETONKA: The new Ridgedale State Bank has named Frederick Winston president and chief executive officer. He formerly was head of the Asian division of the international department of First National Bank of Minneapo lis. The bank also announced the following elections: Robert C. Ameson, executive vice president; Ralph G. Pitzrick, cashier and vice president, and Barbara J. Ander son, administrative assistant. Mr. Ameson formerly was vice presi dent of Americana State Bank of Edina. Mr. Pitzrick was cashier and operations officer of the Golden Valley State Bank. Mrs. Anderson formerly was with the First National Bank of Minnetonka and was marketing officer at American State Bank of Edina. Bankers _ Service LOAN ACTIVITY BULLETIN Who: names of all debtors in the county recorded during the period What: name of secured party When the date the loan was filed with the Secretary of State Where: location where loan made fast se*vicc OWATONNA: The First National Bank has announced the promo tions of Boyd W. Hanson to cashier and Carl J. Sehnert to vice president and as manager of the timepay department. Lloyd D. Ratkovich, vice president, has joined the bank from the First Security State Bank of St. Paul. ST. PAUL: Gary Woeltge has been elected president of the Heritage State Bank of North St. Paul. He began his banking career with the First National Bank of St. Paul in 1967. Most recently he has been vice president of finance for Barber’s Hairstyling for Men & Women, Inc. WINONA: Three officer promo tions have been announced by the First Northwestern National Bank. They are: Roger E. Przybylski and Ronald R. Stoskopf to vice presidents and Vicki Decker to marketing officer. North Dakota News BISM ARCK: United States Court of Appeals for the Eighth Circuit has ordered returned to U.S. District Court the common law issue of whether or not the name First Bank of North Dakota, N .A. used by First System Banks in Fargo, Grand Forks, Jamestown, Ä C R E C O R OS Minot and Wahpeton is too similar to Bank of North Dakota. Colorado News AURORA: Vincent Schmitz, CPA, has been appointed vice president in charge of a newly formed business and commercial depart ment at the Aurora National Bank. Mr. Schmitz was an organizer of the bank and has served on its executive and loan committees. DENVER: First Security Bank, to be located within a radius of one-half mile of the intersection of East Arapahoe Road and South Holly Street, has filed an applica tion for charter with the state banking board. Incorporators and stockholders of the proposed bank are Jack C. Kent, Charles H. Smukler, Richard L. Eason, Alan R. Harmon and Leigh H. Norgren. DENVER: Norman J. Neuhalfen has been named vice president of the new Women’s Bank in Denver. COULSON STEINMETZ AND LEWIS Three of our men on your side at Fred N. Coulson, Jr. 234-2479 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Michael D. Steinmetz Edwin B. Lewis 234-2480 234-2625 C ommerce Bank o f Kansas a ty M e m b e r FDIC T elephone (816) 234-2000 V" "O pportunity For availability of funds, knowledgeable people and professional service, call our correspondent bank department. I W ■ I I r « 1 wr l9 e e e Robert Scott, Correspondent Danker B en EUders: BANKERS’ BANKER Come With Us T O L L FR EE 1- 800- 362-1615 “ C received consent to establish a facility in the White Plaines Shopping Center at Dundee and Landwehr Roads here. ” Central National Bank & Trust Company LOCUST AT 6TH/DES MOINES, IA 50309 MEMBER FDIC D es M oines, Iow a 5 0 3 0 4 House Continues Work on Bank Reform B\\\ AFFILIATED WITH CENTRAL NATIONAL BANCSHARES. INC He previously was vice president of the Citizens Bank of Aurora. Illinois News HOFFMAN ESTATES: Suburban Bank of Hoffman Estates has received regulatory approval to establish its headquarters at the 275 South Roselle Road office now under construction in nearby Schaumburg. The bank will change its name to Suburban Bank of Hoffman-Schaumburg at the time of moving into the new location late next month. NORRIDGE: The Federal Reserve System has announced its approval of the application of PDB Invest ment Corporation, Chicago, to become a bank holding company by acquiring Plaza Drive-In Bank here. NORTHBROOK: The Northbrook Trust and Savings Bank has Bankers Trust The House Banking Committee was continuing its work last month on markup of the banking reform bill, now known as Financial Institutions Regulatory A ct of 1978 (instead of the previous title, Safe Banking A ct). Among items considered were these: • A prohibition of large bank holding companies from selling insurance or acquiring subsidiaries that engage in insurance activities. Four exceptions are: for sales of credit-related and disability insur ance; for H.C.s and subsidiaries in towns under 5,000; in other communities where adequate insur ance agencies do not exist, and H.C.s with assets under $50 million. All existing insurance activities as of June 6, 1978 would be grandfathered. • Prohibition of preferential loans by a correspondent bank to any executive officer, director of 10% stockholder of a bank for which it holds a correspondent account. House Moves to Cut Capital Gains Tax The House Ways and Means Committee is expected to resume work this week on the tax bill that apparently will come out of committee with a reduction in the top rate on capital gains tax from 49% down to 35% . Committee Chairman A1 Ullman (D ., Ore.) said last week the Carter administration has not shown good reason why the tax bill should not proceed and has offered no workable alternative attractive enough to the 37-member committee. A previous proposal by Rep. William Steiger (R., Wis.) to cut the top rate to 25 % was sidetracked for the 35% level. President Carter and his staff oppose both proposals as being “ huge tax windfalls for Want to increase your PROFITS? e M P iR e upe I N S U R A N C E C O M P A N Y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Call toll-free 800-228-9096 (In Nebraska 800-642-9321) A sk fo r A . J. B ia n c h i, P resid en t CALL ON THE “PERFORMANCE TEAM 199 where com m on transactions are handled uncomm only well. FIRST NATIONAL LINCOLN 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. millionaires and two bits for the average American.” In drumming up support for the 35% amendment offered by Rep. James Jones (D., Okla.) and which is now termed the “ Jones-Ullman compromise,” Chairman Ullman stated “ People want more freedom to move in the investment arena. We do need to ease up” on capital gains. W ANT ADS Rates 40 cents per word per insertion. Add $2 for box numbers. Identity of box number advertisers cannot be revealed. NORTHWESTERN BANKER 3 0 6 15th St., Des Moines, Iowa 50309 WANTED TO BUY Addressograph and Graphotype equipment. Please list model and serial number of machine. W rite P.O. Box 607, Boone, la. 50036. POSITION AVAILABLE MARKETING OFFICER WANTED in mid-sized mid-state Wisconsin town. Responsibilities to be divided between managing call program and making majority of commercial calls, working with advertising committee and agency to manage advertising marketing plan, and being responsible for various bank promotions relating to established program in bank. Position open immediately. Banking experience more desirable than marketing experience at this stage, but must have knowledge of commercial call programs and must be proven caller himself. W rite File ADW, c /o Northwestern Banker. POSITION AVAILABLE Need cashier and assistant vice president for $14MM bank in rural eastern Nebraska. Operations and ag loan experience necessary. W rite file ADM, c /o Northwestern Banker. SALE OR LEASE, TEMPORARY OR PERMANENT 14’x62’ mobile bank building in Arkansas, 14’x50’ wood modular bank building in Kansas, 12’x40’ steel & brick building in Missouri, 12’x55’ mobile bank building in Texas. Other sizes (200s.f.) available. All bank equipment included, and available now, from the leading distributor of preconstructed Financial buildings. SON CORPORATION, Box 684, Wichita, KS, 67201, (316) 942-8167, call collect. BANKERS PARTICIPATING POSITION AVAILABLE Iowa bank seeking experienced loan officer. Related degree and minimum two years ag-loan experience desired. Send resume and salary requirements to file ADX, c /o Northwestern Banker. L e a s e P la n .In c . 545 - 31st Street Des Moines. Iowa 50312 R. L. “DICK” SELLON • P.D. “DUANE” DEVAULT PARTIAL LIST OF AVAILABLE POSITIONS AUDIT - Looking for 2 yrs. exp. Audit a must. W ill be in charge of internal audit dept, of $100m m + bank. Salary $18,000. EXEC. V.P. - IA. bank wants an aggressive person who has had total responsibility. W ill be involved in all mgt. Marketing exp. a big plus. Salary $32,000. EXEC. V.P. - Exp. needed in all areas. Commercial & consumer lending with agri emphasis a must. III. location. Salary $28,000. TRUST - Several positions are currently available. Openings include administration, operations and investments. Salaries $15-30K. ALL FEES COMPANY PAID RESPOND IN CONFIDENCE TO: Bank Division ROBERT HALF mû of Iowa, Inc. 317 6th Ave. Des Moines, IA 50309 (515) 244-4414 FOR SALE 775 NCR Proof Machine, console only priced at $6,500. with additional $525. necessary to purchase remaining 6 months of maintenance contract. Purchased new January 1976, and showing under 2,000 hours of run time. I ea. Pitney Bowes Embosser and Addresser Printer, complete, 2 ea. 12 drawer Pitney Bowes storage cabinets on wheels and 2 ea. 2 drawer Pitner Bowes storage cabinets, all in good condition. Installing computer and need to sell. Contact V. E. Rossiter, Jr., President, Bank of Hartington, Hartington, Neb. 68739. POSITION AVAILABLE Executive officer for $7 million bank in Iowa town of 300. Ag and investment experience preferred. Salary negotiable. Write Box ADO, c /o Northwestern Banker. POSITION WANTED Recent accounting graduate from rural background desires management trainee position. Previous bank experience. W rite File AOY, c /o Northwestern Banker. POSITION AVAILABLE Vice President, #2 position in $14,000,000 bank, community of 2,100 near Springfield, Illinois. Prefer som eag lending background. Contact L. Wenzl, 2401 University, Des Moines, Iowa 50311. FOR SALE New Victor 10-key adding machine. U.S. made warranty. Sale price $119.50. Does not divide or multiply. GREENLEY IOWA SUPPLY CO., (515) 622-3393, Sigourney, Iowa 52591. POSITION AVAILABLE IMMEDIATELY Trust officer to head trust department for $50MM central Iowa bank. Legal degree and trust experience preferred. W rite File ADT, c /o Northwestern Banker. POSITION AVAILABLE Loan Officer, minimum 2 years banking experience. Contact: Larry Wenzl, First Federal State Bank, 2401 University, Des Moines la. 50311. 277-6441. INSTALLMENT LOANS Bank seeks aggressive individual with at least 3 years installment lending experience. Growth oriented, $30 million bank is located in a city noted for its quality of life. Send resume and salary history in confidence to file ADU, c /o Northwestern Banker. POSITION AVAILABLE SERVING PROFESSIONALLY Experienced installment loan person, general insurance licenses desirable, a nd/or operations experience. $15MM Bank. Contact: Farmers & Merchants State Bank, New York Mills, Minn. 56567. (218) 385-2300. Bonking, Finoneioi & Business Personnel Iowa and Nationwide POSITION WANTED Loan o ffic e r w ith 15 years e xp erien ce in agri-business, commercial, and real estate lending. Background includes both community and corres pondent banking. Resume and references on request. W rite file ADP, c /o Northwestern Banker. CAPITAL PERSONNEL SERVICE 814 Central National Bldg. 515-283-2545 Des Moines, Iowa 50309 POSITIONS AVAILABLE AG LOAN-—Rural Nebraska bank of $10MM. Insurance licenses and knowledge of operations helpful ..........................................$18,000 SECOND OFFICER— $20MM suburban Mis POSITION AVAILABLE IMMEDIATELY V ic e P r e s i d e n t , #2 in bank. S ho uld have com merical/ag loan, operations experience. $19 million eastern Neb. bank. W rite File ADQ, c /o Northwestern Banker. • ESTATE APPRAISALS • INSURANCE APPRAISALS • BUYERS OF ESTATE JEWELRY AND COIN COLLECTIONS TOP PRICES PAID 40 YEARS IN OMAHA SIMON'S JEWELRY CO. 328 SO. 72nd ST. OMAHA, NEBR. 68114 PHONE 402-393-2320 souri bank. Position requires comm’l loan and business development s k ills ..............$22,000 bank close to metro area. Handle instalments, R .E., and some commercial c re d its .............................$20,000 AUDITOR— Excellent opportunity for junior officer with limited experience. $50MM K.C. suburban b a n k ....................................... $15,000 COMM’L LOAN— $200MM metro area bank seeks addition to staff. Prefer 5 yrs. lending experience with 6 figure cred its ...................................... $28,000 PERSONNEL OFFICER— Major midwestern bank needs experienced Individual with strong administrative and communication skills. Opportunity for further advance ment ..........................................................Upper $20’s LOAN OFFICER—$20MM A brief sampling of our current openings. inquiries held In confidence. All TOM HAGAN & ASSOCIATES Linda Blue Smith, President Box 12346— 208 E. 18th Ave. NKC, MO 64116 (816) 474-6874___________ V ol. 7 N o. 12 Northwestern Banker Newsletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, D es M oines, Iowa 50309. Subscriptions 25 cents per copy, $8 per year, Second class postage paid at Des M oines, Iowa. Address all mail subscriptions, changes of address [Form 3579] manuscripts, mail items to Digitizedabove for FRASER address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis