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Voi. 9 No. 48 Des Moines, Iowa Fed Vice Chairman Frederick Schultz States: Budget Cuts Key to Inflation Drop R E A K IN G the back of inflation depends in great measure on breaking the expectation of inflation by the American people. To accomplish this will require a continued tight money policy by the Fed, which cannot do it alone without painful cost, and a responsible fiscal approach by the President and Congress. This diagnosis of the sick economic condition of the nation, and a prognosis if matching money policy and fiscal policy are pursued, was given last week in Iowa by Frederick Schultz, vice chairman of the Federal Reserve Bank, W ashing ton, D.C. Speaking in Ames at the Iowa Bankers Association’s 1981 A g Credit Conference as a special guest, Governor Schultz was accompanied by Senator Roger Jepsen of Davenport, one of Iow a’s two Senators in Congress. Governor Schultz repeated his remarks a short time later at a special briefing for businessmen and the press in Des Moines. A summary of his remarks follows: B Fed Can’t Do I t Alone “ The Fed does not believe economy functions well with kind o f interest rates we have. do not believe that we can win the the We this fight against inflation by ourselves. This is not just a push-pull, cost-price situation, but a momen tum type of economy where everyone continues to anticipate inflation. Therefore, we do not have it in our power at the Fed to beat Sen. Roger Jepsen (seated) and Fed Vice chmn. Frederick Schultz. inflation alone. There are four components of the high rates w e’re experiencing: Inflation and the expectations for it, economic activity, credit demand, and the operations of the Fed. “ Credit demand is extremely important. The federal government is taking more than 25% of the credit in the United States. The March 23,1981 private sector needs to rebuild its liquidity badly; it needs to get out of short term debt and into long term rates. W e will continue to pursue our firm monetary policy to get interest rates down and beat inflation over a period of time. “ W hat happens then? I t depends on what happens to the economic package of the Administration in Congress. I f you have a firm monetary plicy and a loose fiscal policy you will have high interest rates and they fall unevenly on all sectors. “ W e believe inflation is our most serious problem and we (at the Fed) will continue to work at this with our fullest efforts. W e can bring down interest rates by Fed policy to some degree, but at a painful cost; for example, bankruptcies. Budget Cuts Essential “ But, if we get good, deep budget cuts from Congress we can get many things moving that would loosen the credit pool. This is crucial to affecting expectations in this country, and people are expecting this now after all the election talk. “ When I was in W hite House meetings with the Carter Adminis tration, they were serious about wanting budget cuts, but they couldn’t get the job done. Now, a new Administration looks like it may be able to do the job and if it does, the most crucial thing is creating a change in attitude among ASK JERRY TRUDO to make MNB work for you. Toll free: 1-800-332-5991 Hants National Bank i:i https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Our computer capabilities give you a lot of help for your money. IOWA . nesMoines Æ m MATKDMAL BANK Member FDIC An Affiliate of Northwest Bancorporation Banco . citizens about the expectation of inflation. I think we need tax cuts, but I ’m not sure we need them for the same reasons articulated by the Administration. I think we need them, but would rather see them geared to savings and investment. I f they are across the board, it would probably stimulate consumption. “ I cannot stress how important those budget cuts are. I f we get them, I ’m much more optimistic about getting inflation down without the blood letting an alternative would bring. Defense expenditures are the most inflation ary kind because they put money into the economy without matching goods for our own markets. Our strongest bet as a strong nation is to have a strong economy. Weakness in that is our greatest danger.” Question Period In the ensuing question and answer period, Mr. Schultz was asked if T-Bills should be pegged at a special rate. He referred to the ending of the accord with the Fed that took place in 1951 and said that is the only way to operate. W ith government rates set in the open market, they aren’t going to come down until the government quits borrowing so much, he said. He noted further that Fed executives pray every night that Congress will make budget cuts so as to take a lead in cutting inflation and heading off more painful effects for business and individual citizens. “ It would have been so much easier to get inflation under control five years ago,” Mr. Schultz pointed out, “ and it will be worse to handle five years from now.” Sen. Jepsen Optimistic W ith this scenario, Sen. Jepsen was asked for his practical assessment of whether, in fact, budget cuts would actually materi alize. He stated, “ The next 90 days will determine the political will and resolve of Congress. W e will either have the needed support, or not. I predict we will. I t ’s in the climate of Washington. I don’t think that Congress now will be intimidated by professionals in the government buraucracy, by vested groups, liberals, activists, any of the special interest groups. “ In the next 90 days you will hear things from Congress that you’ve never heard before. The theme you hear now is that no cuts are being made. Actually, they’re not being increased. “ I t ’s hogwash that we’ll be taking from the poor to give to others—pure nonsense. “ W e ’re entering a period of hope. The President has strong support from mainstream America and if Congress doesn’t respond, the President can go directly to the people and he will. I believe that with Republicans and conservative Democrats you will see a coalition in the House. ‘‘ Regulatory reform is on the way. Every member of Congress I know wants clean air and all those other things, but it’s not the laws for the most part causing dissension, but the regulators. “ There are four elements to this package—budget cuts, tax cuts, <*■— Single System with National Bank of Waterloo Waterloo, Iowa 50704 Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis f lb i * UNITED MISSOURI BANK OF KANSAS CITY, N.A. 10th and Grand o Kansas City, Mo. 816-556-7903 Member FDIC regulatory reform and monetary control.” Governor Schultz followed the Senator again by reminding his audience that it is not his position to say which budget cuts should be made. “ Ours is not a political concern, but only to form monetary policy,” he said. □ Iowa News H A Y E S V IL L E : Ronald Greeson has joined the Hayesville Savings Bk. He was a.v.p. and mgr. of the Richland office of the Union Bank & Trust Company, Ottumwa. T IP T O N : Jeff Meyer, formerly with PC A in central Iowa, has joined the Tipton State Bank as ag rep. Nebraska News B E L L E V IE W : Peter J. Bina has been elected pres, and a director of Southroads Bank. Mr. Bina is a graduate of Kearney State College. He was previously v.p. and cashier of the Bank of Belleview. H A S T IN G S : Michael B. Jacobson, asst. v.p. and ag rep. of City National Bank & Trust Co., has placed in the top eight of his field competing in a regional speech contest in Colorado Springs. L IN C O L N : An application by the First Security Bank of Nebraska for a bank charter to be located at 5900 NOW ACCOUNTS Now! Bank Data Processing Professionals Grow with this iH é |H H ^ K i x HK » 1-\ \ ¡pl BANKERS PARTICIPATING 11 wMIm Phone Bill Rickert ! ■ L e a s e P la n .In c . 545 - 31st Street Des Moines. Iowa 50312 at 1-800-772-2411. R. L “ DICK” SELLON Supplement to Northwestern Banker Newsletter 3-23-81 Carleton D. Beh Co. Investment Bankers/Financial Consultants NEW ISSUE SALE DATE: March 18,1981 $40,000,000 IOWA STUDENT LOAN LIQUIDITY CORPORATION S&P; A Floating Rate Student Loan Revenue Bonds 1980 Series A Dated: April 15,1981 Denomination: m ultiples of $5,000 The bonds w ill be in fu lly registered form with Interest payable quarterly. First interest payment date is June 1, 1981 and quarterly thereafter, 9/1, 12/1, 3/1 and 6/1. IN THE OPINION OF COUNSEL INTEREST ON THESE BONDS IS EXEMPT FROM ALL PRESENT FEDERAL INCOME TAX AND ALL PROPERTY TAXATION IN THE STATE OF IOWA MATURITIES $40,000,000 March 1,1996* to yield 11.35** * Callable March 1, 1988 at 102%. **The bonds w ill bear interest at the rate of 11.35% from April 15,1981 to J u n e l, 1981 and thereafter at a rate which w ill fluctuate quarterly based upon 74% of the average bond equivalent rate for 13 week U.S. Treasury Bills auctioned during the quarter ended 3 months prior to each payment date (9/1, 12 /1 ,3 /1 and 6/1) rounded upward to the nearest 1 /20 of 1 %, but in no event w ill the interest rate be less than 6% or greater than 131/2% per annum. The rate w ill be calculated on the basis of the result of the regular weekly Treasury Bill Auction. The 1981 Series A Bonds are offered when as and if issued and received by the Underwriters, subject to prior sale, withdrawal, or m odification of the offer w ithout notice and to the approval of legality by Belin, Harris, Helmick & Heartney, Des Moines, Iowa, Bond Counsel to the Corporation. Certain legal matters w ill be passed on for the Underwriters by their counsel, Hawkins, Delafield & Wood, New York, New York. Delivery is expected on or about April 23, 1981. A copy of the Preliminary O fficial Statement (prospectus) w ill be forwarded by calling the Carleton D. Beh Co. at 515-288-2152; Iowa calls at 800-532-1468. Des Moines Building • Des Moines, Iowa 50309 • 515-288-2152 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * Legal Holiday Closing Notices For 1981 Complete Legal Holiday closing notices for 1981 includes the following dates: Memorial Day - Mon, May 25th Independence Day - Sat., July 4th Labor Day - Mon., Sept. 7th Columbus Day - Mon., Oct. 12th Veterans Day - Wed., Nov. 11th Thanksgiving Day - Thurs., Nov. 26th Christmas Day - Fri., Dec. 25th New Years Day - Fri., Jan. 1, 1982 Bold Black type on white stock for easy readability. Lobby Posters In Observance of this LEG AL ( 2 2 ” x 2 8 ” ) Lobby Posters printed on heavy enamel stock. H O LID AY we will be closed for Christmas Day Counter Cards have easel backs. Counter Cards ( 5”x l 0 ”) (with easel back) Friday December 25th In Observance of this LEGAL HOLIDAY we will be closed for Christmas Day Friday December 25th (Fits most standard size displays) (For use in Drive-up window and teller line) https://fraser.stlouisfed.org Supplement to Northwestern Banker Newsletter 3-23-81 Federal Reserve Bank of St. Louis Legal Holiday Signs Order Form LOBBY POSTERS: $8.00 each (orders under 24 total posters) $6.50 each (orders of 24 posters or more) COGNTER CARDS: $4.00 each (orders under 24 total cards) $3.25 each (orders of 24 cards or more) Please enter my order for the following: HOLIDAY LOBBY POSTERS (Quantity) COGNTERCARDS (Quantity) Memorial Day Independence Day Labor Day Columbus Day Veterans Day Thanksgiving Day Christmas Day New Years Day Ship to: Bank_________________________ ____________________ ________________ Officer___________________________ __________ _______________________ Address____________________________________________________________ City--------------------------------- State___________________ Zip_________ You will be billed with shipment of all orders, F.O.B. Des Moines (freight additional) □ Please send 1982 order form available in July. Mail to: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Printing & Publishing Co. 306 - 15th Street Des Moines, Iowa 50309 3 CALL ON THE “PERFORM ANCE TEA M ” where com m on transactions are handled uncomm only well. FIRST N A T IO N A L LI N C O LN 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. N .W . First St., Highlands North Development, has been denied. O M A H A : The M id Plains Chapter of the National Association of Bank Women will hold their annual Executive Night on Tuesday, March 24, at the Omaha Country Club. Frances Schmeling, M id W est Region v.p. fromMapleton, la., will present an “ Update on N A B W .” Minnesota News M IN N E A P O L IS : The board of trustees of F&M Savings Bank elected Paul B. Damkroger asst, v.p. Mr. Damkroger joined F& M in January of this year and is responsible for F & M ’s commercial loan portfolio. Previously he was publisher of a local magazine. P IP E S T O N E : Rick A . Stevens has joined the Arlington State Bank as a management trainee. He gradu ated from Pipestone Area Vocation al Technical Institute. Illinois News C H IC A G O : Northern Trust Corp. has named Philip W .K . Sweet, Jr., chmn. andc.e.o. of the bank holding company and its principal subsidi ary, Northern Trust Co. Mr. Sweet, formerly president, succeeds retired Chairman E. Norman Staub, who will continue as director of the holding company and the bank. Charles H. Barrow was named pres, and second-ranking officer o f both corporations. David W . Fox was named vice chmn. and elected a director. Two additional directors elected were Warren J. Hayford, pres, and c.o.o. of International Harvester Co., and W illiam D. Smithburg, pres, and c.o.o. of Quaker Oats Co. C H IC AG O : A group of midwest investors has agreed to purchase controlling interest in Central National Bank from F.H . Prince & Co., Inc., and members of the Regnery family who together own 40 % of the common stock and all of the 60,000 shares of preferred. Purchasers include Solomon A . Weisgal, president of Solomon A . Weisgal, Ltd., Chicago; Joel Labovitz, private investor, Duluth, Minn.; Martin Bucksbaum, chair man, General Growth Properties, Des Moines, la., and two brothers, Norman and Martin Rich, chairman and president respectively of Louis Rich, Inc., Davenport, la., a subsidiary of Oscar M ayer & Co., Inc. Montana News D IL L O N : George S. Henry, 71, sr. v.p., State Bank & Trust Co., died recently. He began his banking career at the age of 19 at the Bison State Bank, S.D. He is survived by a son Robert, pres, of First Bank-Southside Missoula. Wisconsin News The Federal Reserve Board has announced its dispositions of five applications of First Southeast Banking Corporation, Darien: Approval of its application to acquire First Bank Southeast of Lake Geneva, conditional approval of its applications to acquire First Bank Southeast, N .A ., Kenosha, and First Bank Southeast of Silver Lake, and denial of its applications to acquire First Bank Southeast of W est Kenosha and First Bank Southeast of Twin Lakes. W e’re people w ho can help with a g lending. For ag lending, data processing, overlines, and investment services . . . w e’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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wyoming News B U F F A L O : George Schaffer has been promoted to asst. v.p. of First National Bank and W illiam Omohundro, a Buffalo attorney, has been named a director. L Y M A N : First State Bank has elected G. Haldane Bradshaw chairman of the board. Nick D. Lives has retired as pres., c.e.o. and director. Robert D. Morrison, v.p. and cashier, will assume the duties of c.e.o. GET THE COMPETITIVE EDGE over savings and loan, credit unions, etc. This “ on-premise” system gives you complete inde pendence, competitive flex ibility and control. Get tighter instantaneous reporting in every phase of y o u r o p e ra tio n . A t the sam e tim e reduce yo u r operating costs. A program for your every need — and m ore. The best banking system in the industry. rT p ^ Modern Banking System s, Inc. SECURITY N ATIO N AL BANK IN SIOUX CITY, IOWA. MEMBER F.D.I.C. W A U K E S H A : Lee Melville, pres., Independence Bank Waukesha, has announced the election of Eric Delzer to the board. Mr. Delzer is pres, and c.e.o. of Delzer Litho graph Company, Inc. 1 1980 Security National Bank 6818 Grover St., Omaha, Nebraska 68106 (402) 392-0151 Estate Appraisals Ag Banking Specialists8^ Purchase of Collections W lwn it comat to agriculture, banking and p ersonnel. . . ge to the specialists — go to AGRIcoreers, Inc. Sale of Rare Coins Prograssiva bankers pay a t to find the people they need. Reliable and respected service for over 20 years AG LOAN OFFICER/INS. M G R ........ IA .$15-20,000 I 2ND MAN IN SMALL BANK.................N E . $15-22,000 : ASST. V.P./BRANCH M G T.................IA .$16-22,500 I INSURANCE M ANAGER..................... N E .$16-19,000 SALES & MKTG. RE P .-FIN A N C E .. . . N Y .$20-25,000 I COMMERCIAL LENDING O FFIC E R .. IA .$15-16,000 Used by bankers throughout the midwest Ben E. Marlenee Coins Ask our bonking specialist. U n d o , w hat's available without cost or obligation. (5 1 5) 394-3145 > N E W H A M P T O N , IA 50659 913 Locust Des Moines, Iowa 50309 515-243-8064 innC4RKRS, INC. ™ THE ORIGINAL AGRICULTURAL RECRUITER SERVING PROFESSIONALLY Banking, Financial & Business Personnel Iowa and Nationwide POSITION AVAILABLE NumberTwo Person fo r$60 million Iowa bank. Should be generalist with solid commercial lending experience..........................................Salary to $30,000 714 Central National Bldg. 515-283-2545 _______ Des Moines, Iowa 50309_______ WANTADS Rates are $5.00 per line per insertion. Add $3.00 for file letters per insertion. Identity of file letter advertisers cannot be revealed. NORTHWESTERN BANKER 30 6-15th St. Des Moines, Iowa 50309 FOR SALE OR LEASE PERMANENT OR TEMPORARY - Sale or lease modular bank buildings. Available immediately: 12’x40’ w/2DUW’s in Nebraska, 14’x60’ in Missouri, 24’x60’ in Illinois, and 12’x50’ in Minnesota. SON CORPORATION, Box 684, Wichita, Kansas, 67201, (316)942-8167, call collect.______________ (FSorLS) WANT TO BUY Burroughs Sensimatic F6211 series in working condition. Phone (712) 688-2214, Auburn Savings Bank, Auburn, la.________________________ (WTB) Top-mounted mag card feeder for Burroughs L-5000. Phone (319) 886-2136. First National Bank, Tipton, Iowa.___________________________________(WTB) <^dtoCdsx a n d <z/hioaiat£.± Bank Consultants Specializing in Bank Acquisitions 515-232-0814 P.O. Box 450 405 Main Ames, Iowa 50010 D o n a l d E. H o l d e r , Principal Please Contact: J. Mason Henry Charles E. Walters Co., Inc. 39 Ginger Woods Road, Valley, Nebraska68064 Phone: (402)553-6400 LENDING - N.W. Iowa bank seeking ag lender with at least 2 yrs exp. $18,000. ASST. VP - Large Des Moines bank looking for heavily experienced commercial lender who has a keen sense of business judgment. $28,000. COMMERCIAL LENDING OFFICER - Must have at least 3 yrs experience and ability to run a branch. $23,000. SENIOR TRUST OFFICER - Need heavily experienced indiv to come into trust dept and eventually assume full responsibility for trust dept. $21,000. LENDER - Nebraska bank seeks indiv with ten years of experience in commercial and especially agriculture lending. $25,000 + 2ND PERSON/INSTALLMENT LENDER - Need at least 2 yrs of exp handling installment loans, student loans, mastercharge and direct & indirect loans. $17,000. ALL FEES COMPANY PAID. FOR FURTHER INFORMATION RESPONDIN CONFIDENCE TO: Bank Division ROBERT HALF of iowa. ine 317 6th Ave. Des Moines, IA 50309 (515) 244-4414 A L L FEES COM PANY PAID POSITIONS A V A IL A B L E CAPITAL PERSONNEL SERVICE □ I would like to sell my majority bank stock. □ I would like to buy ma jority bank stock. P A R T IA L LIST OF A V A IL A B L E POSITIONS 1 I I I I I I Ag LenderforSouthwest Minnesota bank.................... ............................................................Salary to $28,000 Cashier needed by Nebraska bank in town of 10,000 ...........................................................................$25,000 Marketing Officer for $150 million bank in Io w a .......... ...........................................................Salary to $20,000 Asst. Operations Person fpr$10 million bank in S.E. M innesota.........................................................$16,500 Write or call Malcolm Freeland, Freeland Financial Service, Inc., 306 - 15th Street, Des Moines, Iowa 50309. Phone (515) 244-8163. Employer pays fee. SECOND PERSON - Must have experience in accounting, regulations, and operations. Some loan experience helpful. Salary commensurate with experience. Inquire in confidence to: R.W. “ Dick” Anthony, Valley State Bank, Box 400, Baggs, WY 82321. Phone(307) 383-2025._________________ (PA) $100 million northwest Iowa bank looking for someone to manage the bank’s agricultural and farm management portfolios. Supervises three. Must be degreed, have 7-8 years ag lending experience, and proven sales and supervisory ability. Write file MBU, c /o Northwestern Banker.___________________ (PA) POSITION AVAILABLE Bank Office Management for a rapidly growing metropolitan bank. West Bank has an excellent opportunity in Office Management for a personable, aggressive individual with a minimum of 3 years in banking including business development and lending experience. Excellent salary and fringe benefits. Send resume and salary requirements in confidence to: Joyce A. Chapman, Vice President and Cashier, West Des Moines State Bank, 1601-22nd Street, West Des Moines, Iowa 50265.________________________ (PA) BANK PRESIDENT/C.E.O. with opportunity to invest to 25% of capital. Newly chartered bank in central Minnesota. Send resume and financial statement to File MBI, c /o Northwestern Banker.___________ (PA) AG LOAN OFFICER - northeast Iowa bank with insurance agency needs aggressive and experienced Ag Loan Officer. Excellent community. New modern facilities. Top Salary and fringe benefits. Send resume in confidence to file MBT, c /o Northwestern Banker. _________________________________________ (PA) LOAN OFFICER-Immediate opening for Loan Officer fam iliar with all types of lending including agriculture fora$40 m illion bank located in Central Nebraska. 3-4 years experience. Send resume to file MBN, c /o Northwestern Banker._______________________ (PA) VEHICLES REPOSSESSED NORTH CAROLINA STATEWIDE SERVICE Since 1922-Field Divisions “ Wanted Vehicle-Missing Persons Bulletin” HOME DETECTIVE COMPANY, INC. P.O. Box 11431, Greensboro 27409 (919)299-1641 POSITION WANTED POSITIONS W AN TED Commercial Loan Officers with 3 to 20 years experience seek new op portunities............$25,000 up CEO of community bank wants greater challenge. W ill consider number one or two posit io n ..............$28,000 Installment Loan Officer with finance company wants to join community bank in Iowa........................$18,000 If your bank needs a qualified officer, we have many more applicants in a wide range of experience. Call: Malcolm Freeland, Freeland Financial Service, Inc., 306 - 15th Street, Des Moines, la 50309. (515) 244-8163. Employer pays service fee._____________ FOR SALE Burroughs S-3000 4-pocket proof machine. One year old. Phone Van Horne Savings Bank, (319) 228-8321. _________________________________________ (FS) 3M brand VQC-SE copier. Three years old. Phone Iowa Savings Bank, (319) 989-2474.________________ (FS) COIN WRAPPER Glory 9400. Excellent condition. Two years old, $10,000.00. Phone Dave, (515) 265-3686._________________________________ (FS) $19 million bank for sale near the Twin Cities; 1.75 x book. Write file MBV, c /o The Northwestern Banker. _________________________________________ (FS) POSITIONS A V A IL A B L E SECOND OFFICER - Strong operations experience with some knowledge of lending procedures required for position with$65MM suburban bank..........$35,000 OPERATIONS OFFICER - Growing $35MM bank with opportunity for advancement. Prefer 5 yrs. or more operations experience........................................$28,000 COMMERCIAL LENDER - Manage loan portfolio for medium size suburban bank. Potential for advancement to CEO spot................................. $30,000 AGRI-LOAN - Ag Degree and 7 yrs. or more solid ag lending experience required. President’s position w ill be available in short tim e....................................$30,000 REAL ESTATE OFFICER - Must have some knowledge of secondary market functions and be business development oriented........................................ $20,000 JUNIOR OFFICER - Position available in small rural Iowa bank fo r officer with 1-3 yrs. general banking experience. Duties w ill primarily include lending. ...........................................................................$16,000 Please forward detailed resume’ and salary history to: TOM H A G AN & A SSO C IA T E S Of Kansas City P.O. Box 12346-2024 Swift North Kansas City, MO 64116 Phone (816) 474-6874 SERVING THE BAN KING IN DUSTRY SINCE 1970 Vol. 9 No. 48 Northwestern Banker Newsletter [USPS 873-300] is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions $1.00 per copy, $15.00 per year. Second class postage paid at Des Moines, Iowa. Address all mail subscriptions, change of address [Form 3579], manuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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