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Des Moines, Iowa Vol. 9 No. 11 Befuddling the Prophets of Doom Editor's N ote: July 4th traditionally calls for a reaffirmation o f faith in our nation, a statement o f “ what's right with America. " This has been done very ably by John McGillicuddy in this extract from his recent stirring commencement address at St. Bonaventure University. By JOHN F. M cGILLICUDDY Chairman Manufacturers Hanover Trust Co. New York, N.Y. ESPITE the uncertainties we face, the fact is that challenge, change and com plexity have al ways been the state of modern man. The mem bers of each new generation tend to flatter them selves into be lieving that the problem s they face are greater J. F. McGILLICUDDY than those of their fathers and mothers. But we know this is not so. Today’s uncertainties are not un precedented. Neither is our current preoccupation with handwringing. I remember vividly the late 1950s and early ’60s. Walter Lippmann, who set the tone for much of the in formed commentary of the day, was suggesting that our democratic in D stitutions were not working, that our once great promise was begin ning to fade. John Kenneth Gal braith and others were challenging the very basis of our economic sys tem. Calls for central economic planning were heard frequently, emerging from a growing belief that the private sector was no longer able to do the job. And who can forget the chilling effect of Nikita Krush chev standing in a wheat field in Kansas and threatening to bury us in 10 years? There was also the Bay of Pigs, a Meet King of Spain H.R.H. King Juan Carlos o f Spain (le ft), m eets w ith C o n tin e n ta l Bank o f C h icag o President John H. Perkins and Alfred F. Miossi, e xe cutive vice p re sid ent and d i re cto r o f in te rn a tio n a l a ffa irs , d u rin g a series o f m e e tin g s and re ce p tio n s cele b ra ting th e fo rm a l op e n in g o f th e ba n k’s new M adrid branch. C o n tin e n ta l Bank, w h ich is one o f o n ly five U.S. banks and th e o n ly m id w e ste rn bank th a t has been p e rm itte d to operate a branch in S pain, has had a represe ntative o ffic e in the c o u n try sin ce 1967. Com e to the professionals. For ony correspondent bonking need . . . overline assistance, d a ta processing services, investm ent counseling . . . just g ive us a call. W e're the professionals w h o put the response in correspondent bonking. AA, Central National Bank & Trust Com pany DES MOINES • MEMBER FDIC • TOLL FREE NUMBER (800) 362-1615 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 7,1980 perceived missile crisis, Sputnik, our own painfully embarrassing attempts to launch a satellite, the first shot lifting no higher than a foot. The literature of despair was be coming one of the few growth indus tries in evidence. Yet, less than three years later, our economic pro gress made us once again the envy of the world. Inflation was under con trol. Our technological and manag erial skills were acknowledged as best, and Europeans were taking in terms of the American Challenge. In short, the world in general and Americans in particular have shown an uncanny ability to befuddle the prophets of doom. In the ’40s, Hitler did not take over the earth. In the ’50s, the Russians did not bury us. The barricade ferment of the 1960s may have torn but did not destroy our society, and, in fact, left us the proud legacy of the Civil Rights Act. And finally, in the ’ 70s, the military did not take over after both a President and a Vice President were driven from office. That none of this took place, of course, was not an accident of nature. Part of it can be traced to the wisdom of our forefathers in estab lishing the metes and bounds of our democratic institutions. But the most credit goes to those who came after—men and women determined to preserve and protect that which they held dear. Today, the world has learned to 2 Bank on a BANKERS’ BANKER Call 1-800-362-1688, toll-free in Iow a Don Cazmody Correspondent Banking Department Bankers rs i stj_ “ ïissTV ust Des Moines, Iowa 50304 Member FDIC, Federal Reserve System accommodate to levels of uncer tainty that would have been un heard of in earlier times. Take only a few examples from my own profession. Indeed, it is hard to even recall all that has taken place in just 10 years time: • The collapse of the Bretton W oods agreement, which allowed currencies to float at will in value against one another. • A more than 13-fold increase in the price of OPEC oil, from $1.80 a barrel in 1970 to nearly $30 a barrel today, leading to the greatest trans fer of wealth in the history of man kind. • Unprecedented—and, to some minds, totally unmanageable—vol atility in financial markets. Gold at $35 an ounce and then at $835 an ounce. A dollar declining in value at times by more than 5 % against the Deutschemark or yen in a single day. It may be hard to believe, but during the entire decade of the 1960s, the prime lending rate changed only 16 times. Contrast that with 15 changes in the prime rate during the last six months of last year alone. • We also went through the worst recession in 40 years, the highest loan losses since the Depression and stops and starts in fiscal and mon etary policy that further compli cated our lives. Yet, while all this was taking place, world trade continued to ex pand by an average of 20% a year. Some $274 billion of OPEC were re cycled to deficit nations. The devel oping world was not stopped in its tracks. The American economy added more than 15 million private sector jobs. And the banking indus try emerged stronger than when the period began. This is not to suggest that the problems we face are not great, nor that we should walk only in sun shine, but to urge that we seek a bal anced view, recognizing favorable developments, as well as the unfa vorable; realizing that while there is much that is wrong with the world, there is more that is right. Only in that way can we reach rational judg ments about the future and chart an intelligent course for getting us there. □ Directory Correction The name of Richard L. DeYoung, executive vice president and trust officer of Laurens State Bank, Laurens, Iowa, was omitted inad vertently from that bank’s listing in the 1980 Iowa Bank Directory. Iowa News ALBION: On June 18 the Iowa Supreme Court ruled it will not in terfere with the discretion of the Iowa superintendent of banking in his duties of determining which applications for charters or charter moves will be heard, and his adopt ion of procedures to be followed. In this case, Fidelity Brenton Bank & "Opportunity T a ww Robert Scott, O # O Correspondent Danker Trust Co. and Security Savings Bank, both of Marshalltown, has applied to the superintendent to open an office in Albion and he denied both applications. Security obtained an order from Judge Gib son Holliday in District Court that ordered Superintendent Tom Hu ston to grant the office move to Se curity. The appeals court overruled the District Court and Security then appealed that decision to the state high court, which now has upheld the appeals court and ordered the matter remanded to Mr. Huston’s office where it is up to his discretion as superintendent. Security Savings attorneys on June 26 then filed for a re-hearing of the decision before the Iowa Supreme Court. fr V DUBUQUE: Dean Prantner has been elected vice president in charge of the instalment loan department at the American Trust & Savings Bank. James P. Cooney was elected a trust officer. KIRON: A decision is awaited on the Iowa Attorney General’s motion We’re people who can help with ag lending. For ag lending, data processing, overlines, and investment services . . . we’ re the people'who can help. We’ re more than western Iowa’s largest bank. We’re people. Ken Roeder Correspondent Bank Officer 712/277-6580 SECURITY NATIONAL BANK IN SIOUX CITY, IOWA. MEMBER F.D.I.C. C ALL ON THE “PERFO RM ANCE TE A M ” where com m on transactions are handled uncom m only well. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis llr « I\J i 1 l m 9 1 1980 Security National Bank ■ M il FIRST NATIONAL LINCOLN 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. jb y C a rle to n D . B eh C o . Supplement to Northwestern Banker Newsletter 7-7-80 Investment Bankers/Financial Consultants SALE DATE: June 30, 1980 NEW ISSUE $5,725,000 BURNSVILLE, MINNESOTA MOODY’S: A General Obligation Improvement Bonds of 1980, Series A Dated: August 1, 1980 Denomination: $5,000 Both principal and semiannual interest (February 1 and August 1, first coupon due on August 1, 1981) payable at a bank to be designated. IN THE OPINION OF COUNSEL INTEREST ON THESE BONDS IS EXEMPT FROM ALL PRESENT FEDERAL INCOME TAXES. MATURITIES 7.50% $325,000 $150,000 February 1, 1982 5.25 250.000 February 1, 1983 5.40 275.000 February 1, 1984 5.60 325,000 7.00% 275.000 February 1, 1985 5.75 325,000 275.000 February 1, 1986 5.90 275.000 February 1, 1987 6.00 250,000 275.000 February 1, 1988 6.15 300.000 February 1, 1989 6.30 275,000 300.000 February 1, 1990 6.45 6.60% 275,000 300.000 February 1, 1991 6.60 6.75% 300,000 325.000 February 1, 1992* 6.75 6.90% 325,000 325.000 February 1, 1993* 6.90 ‘ Optional in inverse numerical order beginning February 1, 1991 at 100%. 7.00% February 1, 7.10% February 1, 7.25% February 1, 7.40% February 1, 7.60% February 1, 7.75% February 1, 7.90% February 1, 8.00% February 1, 1994* 7.00 1995* 7.10 1996* 7.25 1997* 7.40 1998* 7.60 1999* 7.75 2000* 7.90 2001 * 8.00 LEGALITY TO BE APPROVED BY LeFEVERE, LEFLER, PEARSON, OBRIEN & DRAWZ, ATTORNEYS, MINNEAPOLIS, MINNESOTA The City of Burnsville, Minnesota, is located in Dakota County and is a southern second tier suburb of the Minneapolis/St. Paul Metropolitan area. The City has a land area of 16,908 acres. The largest concentration of employment in the City is in Burnsville Center and its satellites. The Center opened in August 1977, and is one of the largest shopping centers in the Upper Midwest. Current employment in the Center is estimated at 2,600. The estimated employment capacity for the Center is approximately 3,000. The City of Burnsville has become one of the most rapidly growing communities in the Minneapolis/St. Paul Metropolitan area. Other major employers in the City are: ISD #191 (965 employees); Pepsi Cola Bottling Company (410 employees); Our Own Hardware Co. (380 employees); the City of Burnsville (380 employees); and Northern States Power Co. (105 employees). These bonds are being issued under the provisions of Chapters 429 and 475, Minnesota Statutes, for the purpose of financing several water, sewer and street improvement projects within the City. Approximately 50% of this issue will be payable from special assessments levied against benefited property owners. In the opinion of counsel, these bonds are also legal and binding general obligations of Burnsville, Minnesota, and all taxable property located therein is subject to the levy of sufficient taxes to pay the principal of and interest on the bonds without limit as to rate or amount. FINANCIAL STATEMENT Market valuation, 1979 Assessed valuation, 1979 Gross direct debt, including this issue Net direct debt, excluding self-supporting Total direct, overlapping and underlying debt Population, 1979 estimate: 36,240 $868,088,818 202,793,850 32,840,000 1,967,341 29,553,273 Gross direct debt per capita: $933.77 Net direct debt per capita: 54.29 Total debt per capita: 815.49 Tax collections have approximated 98.68% of taxes levied for the past four years. W e ow n and o ffe r su b je ct to p rio r sale and change in price and s u b je ct to o u r a tto rn e y ’s approving o p in io n : The information contained herein is not guaranteed, but is derived from sources we deem reliable and is that on which our purchase of these bonds was based. Offered subject to prior sale and change in price. Digitized forDes FRASER Moines Building • Des Moines, Iowa 50309 • 515-288-2152 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 607 M arquette Ave. • Minneapolis, Minnesota 55402 • 612-332-8825 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to dismiss a suit filed against the Iowa superintendent of banking to prevent him from approving the charter move of Kiron State Bank to Odebolt. The suit was filed by Odebolt State Bank. Kiron State Bank is listed as an intervenor. ROCKWELL C ITY : An agreement has been signed for the purchase of the National Bank of Rockwell City from E. B. Lemen, president, and other stockholders, by First Nation al Company of Storm Lake. First National holding company owns Citizens First National Bank of Storm Lake, of which Harry W. Schaller is chairman and his son, George H. Schaller, is president. The purchase is subject to approval by the Federal Reserve Board. If approved, Mr. Lemen, 81, would retire from the bank. Nebraska News OM AHA: Promoted to vice presi dent posts at the Omaha National Bank recently were Peter Gage Jr., senior mortgage loan officer; John L. Laughlin, manager of sales fi nance, and Eugene R. Noell, senior corresp on d en t/a gricu ltu ra l loan officer. OM AH A: Citicorp Person-to-Person Financial Center, Inc. has open ed a new consumer financial services office at 1002 S. 74th Plaza here. The new center will serve the greater metropolitan Omaha area, Lincoln Call our Bond Department For up-to-the-minute, accurate information Minnesota News ST. CLOUD: Dale W . Johnson has been elected vice president and head of the commercial loan department at St. Cloud National Bank and Trust Co. Prior to joining the St. Cloud bank he was a commercial banking officer with First Bank Minneapolis. Previous experience was with banks in Wyoming, Cali fornia and Iowa, as well as seven years with the FDIC. North Dakota News The N orth D akota Bankers Association, in cooperation with the American Bankers Association and the state American Institute of Banking chapters, will be sponsor ing three half-day workshops deal ing with NOW accounts next week. Dates and locations include: Tuesday, July 15, Elks Club, Dick inson; Wednesday, July 16, Ramada Inn, Jamestown, and Thursday, July 17, Holiday Inn, Fargo. Regis tration will begin at 11 a.m. and adjournment is scheduled for 4:30 p.m. Topics will include introduction and planning, marketing consider ations, operational considerations and financial analysis. Montana News Jerry B. Wallander was advanced from vice president to president of to make MNB work for you. Toll free 1- 800- 332-5991 Merchants National Bank 151 A B A N K S O F IO W A ’ B A N K M e m b e r F .D .I.C . the Montana Bankers Association at the group’s 77th annual conven tion in Colorado Springs, Colo., late last month. Mr. Wallander, presi dent of the First State Bank of Froid, succeeds Robert F. Burke, president of the First National Montana Bank of Missoula. The new vice president is Robert L. Reiquam, president, First Na tional Bank in Miles City, and serv ing as treasurer will be Erie C. Gross, president of the Little Horn State Bank, Hardin. John T. Cadby continues as executive vice presi dent. Wyoming News CASPER: Robert E. Bryans has been elected chairman of the execu tive committee of First W yoming jriMi ft âÉ£ 4 Tom Steffens M & jf ^ - I •■ I *-# m û •I ê A 8 Tony Paugoulatos ÌiM Jim McLaughlin Vice President Asst.Vice President Asst.Vice President Vice President Bond Representative 234-2462 234-2458 234-2673 234-2674 234-2647 M em ber FDIC 7 John Henderson «MIS Terry Mercurio Vice President (ï» C om m erce Bank of Kansas city https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ASK T E R R Y M A R T IN and Council Bluffs, Iowa. There are 145 such offices located in 26 states. 234-2463 10th and Walnut Rusty Reese (816) 234-2000 PARTIAL LIST OF AVAILABLE POSITIONS □ I would like to sell my majority bank stock. □ I would like to buy ma jority bank stock. ASST. VP—Good spot fo ra generalist. Small bank in rural community wants a person that can help them grow. $20,000 Please Contact: J. Mason Henry LENDING—Great opportunity to join a solid bank and grow with it. Responsibilities are general in nature and you w ill be groomed for the #2 spot. $18,000 Charles E. Walters Co., Inc. TRUST—Senior officer. Experience needed. W ill eventually take full responsibility for department. $22,000 P.O. Box 1313, Omaha, Nebraska68101 Phone: (402)553-6400 Bank-Casper. Stephen G. Mortimer has been promoted to vice president and Paula J. Wilson was promoted to assistant vice president. Allan B. Ritchie has joined the bank as a vice president. W ANT ADS AG LOAN OFFICER—We prefer a person with some college and who has had good ag lending experience. A major responsibility w ill be to perform farm budget ing and financial planning assistance. Our starting salary could range from $20,000 to low $30,000, depending upon qualifications. If you have an interest in this position, please send an application or a resume to: Bob Hadland, EVP, Farmers & Merchants State Bank, Lamberton, MN 56152. We are an Equal Opportunity Employer._____________________ (PA) VICE PRESIDENT—$35 m illion northwestern Illinois community bank, located near major city, has excel lent opportunity for country banker experienced in loans and operations. W rite file KBR, c l o Northwest ern Banker. (PA) POSITION WANTED Rates 50 cents per word per insertion. Ad $2 for file numbers. Identity of file number advertisers cannot be revealed. Payment in advance, please. NORTHWESTERN BANKER 306-15th St. Des Moines, Iowa 50309 Commercial Loan Officer, with real estate experience, seeks new opportunity. Instalment Loan Officer, with six years experience, wants to relocate. ISU Grad— Now branch manager, wants to relocate in central Iowa. 1979 Nebraska Law Grad seeks trust position. POSITION AVAILABLE Write or call Malcolm Freeland, Freeland Financial Service, Inc., 306 Fifteenth Street, Des Moines, IA 50309. Phone (515) 244-8163._________________(PW) EVP— Must have solid experience and be able to run a small bank. Should have experience in commercial and ag. $28,000 #2—Ground floor opportunity with new charter. W ill be involved with ail aspects of the bank. $25,000 EVP—Minnesota bank. Must have BA degree with 5 + years experience. Ideal background w ill have both commercial and ag lending. $32,000 ALL FEES PAID BY MANAGEMENT For further information respond in confidence to: T 1 Bank Division S o ROBERT HALF T of lowa. me 317 6th Ave. Des Moines, IA 50309 (515) 244-4414 SERVING PROFESSIONALLY Banking,Financial & Business Personnel lowa and Nationwide CAPITAL PERSONNEL SERVICE 714 Central National Bldg. 515-283-2545 Des Moines, lowa 50309 AG BANKING CAREERS SENIOR LOAN OFFICER. . .In d ia n a ........$16-23,000 CREDIT MANAGER. . .O h io ...................... $23-25,000 Field Representative, Iowa College Aid Commission. Seeking college grad with two years minimum install ment loan experience, preferably in student loan area. Travel 20 eastern Iowa counties serving participating lenders in GSL program. Salary in mid-teens, car pro vided. Contact B. Paton, 904 Grand Avenue, Des Moines, IA 50309. Provide resume and references. Deadline for application is July 18._____________(PA) OPERATIONS—Three positions open in Iowa for persons with two to five years experience. CEO wanted for $15 million bank in western Iowa. Ex cellent salary. TRUST OFFICER wanted for $30 m illion Nebraska bank. INSURANCE/AG LENDER wanted fo r Iowa bank located in Lakes region. Write or call Malcolm Freeland, Freeland Financial Service, Inc., 306 Fifteenth Street, Des Moines, IA 50309. Phone(515) 244-8163._________________ (PA) Estate Appraisals Purchase of Collections Sale of Rare Coins Reliable and respected service for over 20 years WANT TO BUY Used night deposit. Must have bag drop for mer chants. South Story Bank, Slater, IA 50244. Phone (515)685-3566.___________________________ (WTB) FOR SALE OR LEASE One Olivetti P-603 posting machine with a BRD disc. $1,800. Call (515) 245-7222.__________________ (S/L) Saxon Bond Copier. $800. Call (515) 245-7222. (S/L) COMMERCIAL. . .lo w a .............................. $20-25,000 LOAN OFFICER. . .lo w a ............................ $15-20,000 CREDIT SUPERVISOR. . .Ohio ................$17-21,000 Since 1968, banks and other ag-related employers have been paying us to find the personnel they need. For more information, give Linda (our banking spec ialist) a call today. FOR SALE Burroughs L9000 computer; under Burroughs service contract. Also, Xerox 660 copy machine; under Xerox service contract. Contact Russell Perry, president, Iowa Savings Bank, Dike, IA 50624. Phone (319) 989-2474._________________________________ (FS) AVAILABLE IMMEDIATELY: 12x60 mobile bank facil ity and attached two-window drive-up unit. Features walk-in lobby, private office, two inside teller win dows, storage room, heat and air conditioning— plus more. Contact The Dakota Bank, P.O. Box 5009, Grand Forks, ND 58201. Phone (701) 746-1313. (FS) 12’x40’ mobile home converted for use as temporary banking facility. Night drop and drive-up window in stalled; good teller counter. Furnace with central air; available immediately. ALSO, 6’x9’ remote drive-up building with heat and air conditioning. Call (319) 291 -5429 or (319) 291 -5468.__________________ (FS) 3M Secretary II plain paper copier. 63,000 copies. $1,800. Call Bob Coon Jr. at First State Savings Bank, McGregor, Iowa. Phone(319) 873-3425.________ (FS) UPDATE YOUR ALARMS P ro fe ssio n a lly in sta lle d closed c irc u it te le visio n and 35mm auto cam eras. Used by bankers throughout the midwest A u t o m a t ic ta p e d ia le r s a n d p o lic e panel co n n e ctio n are available to s u it yo u r needs. Ben E. Marlenee Coins 913 Locust Des Moines, Iowa 50309 515-243-8064 AG LENDING OFFICER. . .SE Minnesota $16-18,000 SECURITY SYSTEMS, INC. J U \ lXA W Des Moines, IA 50316 Q Q on n o lflu ia r a [515] 265-1161 (515394-3145 New Hampton, IA 50659 POSITIONS AVAILABLE AGRI LOAN—Addition to staff of $100MM midwestern bank. Prefer degree in Ad with two to three years experience................................................................. 20K EXECUTIVE VICE PRESIDENT—Opportunity for own ership in $10MM rural Minnesota bank. Must have strong ag and commercial loan background.........30K PRESIDENT—$25MM rural-oriented lowa bank. W ill start as #2 with advancement to president in one or two years....................................................................28K JUNIOR OFFICER—Third officer in $20MM lowa bank. Prefer degree and one to two years ag lending background................................................................16K TRUST INVESTMENT— Head department for a major midwestern bank. Prefer CFA and five to seven years of investment experience......................................... 35K OPERATIONS— Excellent opportunity for advance ment. Position requires solid background in transit and proof procedures for large bank........................ 22K SECOND OFFICER—$10MM rural western Missouri bank needs an ag/operations officer.......................20K Many other fine opportunities available fo r experi enced bankers. Salary history and resume requested. TOM HAGAN & ASSOCIATES OF KANSAS CITY P.O. Box 12346 / 2024 Swift North Kansas City, Missouri 64114 Phone (816) 474-6874 Vol. 9 No. 11 Northwestern Banker Newsletter [USPS 873-300] Is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, lowa 50309. Subscriptions 25 cents per copy, $8.00 per year. Second class postage paid at Des Moines, https://fraser.stlouisfed.org lowa. Address all mail subscriptions, changes of address [Form 3579], manuscripts, mail items to above address. 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