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-*■ 4 4 Voi. 8 No. 49 * Des Moines, Iowa March 31,1980 $11 billion net. In this current cal endar year, however, borrowings by the U .S. Treasury alone will total an estimated $51 billion, even allowing for some of the initial impact of moving towards a balanced unified budget in fiscal 1981. In addition, there are the $35 billion in cash needs of the various Federal credit programs this year (twice as large as in 1974). Thus, during this difficult year in the credit market, the Federal Gov ernment will pre-empt about 23 % of total credit demands as compared with 16% in 1974 and 2.5% in 1969. Consequently, the burden of slowing inflation continues to be predominantly a responsibility of the Federal Reserve. The monetary and credit actions announced by the Fed consist of six parts of varying important to the credit markets. Special Credit Restraint. The Fed will attempt to limit the growth of commercial bank credit this year to a range of 6% to 9% . Consumer Credit R estra in t. A special deposit of 15 % on increases in some type of consumer credit must be maintained with the Fed. Marginal Reserve Requirements. The Fed increased from 8 % to 10 % the reserve requirements on man aged bank liabilities (large negoti able CDs due within one year, Euro- Lack of Urgency Against Inflation By HENRY KAUFMAN Executive Partner and Chief Economist Salomon Brothers New York, N.Y. A 'T' HE MOST disappointing as pect of the President’s new anti inflation program is the lack of urgency in achieving fiscal disci pline—although fiscal discipline appears to have been made the corn erstone of the new program. Virtu ally all of the improvement in the Federal budget is proposed for F iscal 1980, which is still 6 V2 months away. In the meantime, a large volume of Federal financing is scheduled, which will not fall off precipitously in the first quarter of Fiscal 1981, the final quarter of cal endar 1980. P aren th etically, the proposed balanced budget for Fiscal 1981 excludes the officially project ed $18 billion needs of the Federal Financing Bank which obtains its funds directly from the U .S. Treas ury. This financing and that of the sponsored Federal agencies, includ ing guaranteed mortgage pools, are T -4- # -4 "‘A A *r ■y t 4 Years 1969 1974 1980 Est HENRY KAUFMAN as of now under no restraint even next year. When one compares the net new borrowing needs of the Federal Government (the U .S. Treasury and the Federal credit agencies) in 1980 with the two previous comparable periods of economic excesses and credit restraint, 1969 and 1974, the lack is glaring. The fact is that during the credit restraint of 1969, the U .S. Treasury actually supplied a small amount of net funds to the private sector by repaying debt. In 1974, it borrowed Net Federal Borrowing From Public __________ ($ Billions)_________ U.S. Federal Total Treasury Agencies 2.3 28.4 85.7 -5.8 11.2 51.0 8.1 17.2 34.7 % of Funds Raised in American Credit Mkt. by Federal Government 2.5 15.7 23.3 INFLATION PROGRAM . . . (Turn to page 3, please) ASK DALE FROEHLICH to make MNB work for you. Toll free: 1-800-332-5991 Merchants National Bank m Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA' BANK 2 We’re Com m itted. For ag overlines, data processing, investment ser vices and all your correspondent banking needs, think of your Security Banker. We’re committed to helping you! Our computer >- capabilities give you a lot of help for your money. ^ A Jim Hongslo/ Vice President Correspondent Banking 712/277-6625 SECURITY N A TIO N A L RANK SIOUX CITY, IOWA 51101 Iowa News D ES M OINES: Ronald H. Bishop has joined Bankers Trust Company in the commercial loan division. He was formerly vice president of the M orton Grove B an k, M orton Grove, 111. DUBUQUE: Group 4 will hold its annual meeting Tuesday, May 6, at the Five Flags Civic Center here. The group originally had considered either Cedar Rapids or Decorah. FORT DODGE: Harry Huff, chief exeuctive of The State Bank from 1949 to 1965 and chairman until 1969, died March 16 at the age of 88. He had been a banker 54 years be fore retirement. Nebraska News ATKINSON: Lawrence J . Kramer, chief executive officer for several years at First National Bank, has been advanced from executive vice president to president. He succeeds For availability of funds, knowledgeable people and professional service, call our correspondent bank department. T O L L FR EE 1 800 362-1615 - - “C ” C entral National Bank & Trust Com pany LOCUST AT 6TH/DES MOINES, IA 50309 MEMBER FDIC AFFILIATED WITH CENTRAL NATIONAL BANCSHARES. INC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MEMBER F.D.I.C. © 1979SNB John C. Watson of O’Neill, who was named chairman. Mr. Kramer join ed the bank in 1941. Sharon Wenner, cashier, also was elected assistant vice president; Mickey Braun and Joyce Seger were named assistant cashiers. FREMONT: Darrell A. Legband has been elected assistant vice pres ident and commercial loan officer at First National Bank & Trust Co. He was with First State Bank and First National here for several years be fore moving to a bank in Eugene, Ore., in 1977. H O W E L L S: D ana Donnelly has been elected president of The Howells B an k, com pleting the transfer of the bank from former President Elmer Bradley and other stockholders to the newly approved Howells Investment Co. LA V ISTA : Jack Holmquist resign ed recently as president of the Bank of Nebraska and has been succeeded by Robert Everett, formerly vice president at First National Bank of Bellevue. SC RIBN ER: Delwin J . Rumery has been promoted to senior vice presi dent and Joan G. Moeller to assist ant vice president at Scribner Bank. S ID N E Y : R obert Conrad, p resi dent, Sideny National, has announc ed the following promotions: Fran cis L. Goodwin J r . to executive vice president; Fred P. Curtiss to suc ceed him as vice president and ag rep; Helen M. K itt to succeed Mr. Curtiss as cashier, and Grace H. Meysenburg to replace Helen K itt as assistant cashier. North Dakota News The North Dakota Bankers Asso c ia tio n ’s 1980 Consumer Credit Conference is scheduled for April 8-9 at Kirkwood Motor Inn, Bismarck. The conference starts with luncheon at 12:30 p.m., chaired by Mel J . nesMomes M m NATIONAL BANK Member FDIC An A ffilia te o f N o rth w e s t,B a n c o rp o ra tio n t Banco Frueh, N D BA consumer credit committee chairman and vice presi dent, First National Bank in Minot. South Dakota News % The South Dakota Bankers Asso ciation will hold its 1980 Ag Credit Conference April 9-10 at Kings Inn, Pierre. Dave Moore, committee vice chairman and president of Vivian State Bank, will preside at the open ing session. Minnesota News EDINA: J . Peter Meyers has been appointed president of Americana State Bank to succeed Ray Bentdahl, who continues as controlling shareholder and active chairman of Americana State and three other banks outside the m etropolitan area. V' 4 FR EEBO RN : The First State Bank and The Freeborn Agency, Inc., have been sold to Cecil A. Pogatchnik and associates by Jo h n L . "Opportunity Colls../' LOO K a n e , Correspondent Danker American Trust & Savings Dank The Dank of Opportunity Town Clock Plozo. Dubuque, lowo CALL 319-582-1841, COLLECT k 3 H -i 4 Call our Bond Department For up-to-the-minute, accurate information Tom Steffens Terry Mercurio Vice President Asst.Vice President Asst. Vice President Asst. Vice President Vice President Jim McLaughlin Tony Paugoulatos Bond Representative 234-2462 234-2458 234-2674 234-2673 234-2647 John Henderson 234-2463 Rusty Reese * -4, -«KV 4 f C ommerce BANKo f Kansas Gty M em ber FDIC Miller. Mr. Pogatchnik will be pres ident. M IN N E A P O L IS: Prom otions at Union S ta te Bank include E arl Doble to executive vice president; Helen Erickson to auditor and Bev Hanes to assistant cashier. PRINCETON : Don Perbix has been advanced from vice president to executive vice president in charge of operations. Tim Nelson was named vice president in charge of commer cial instalment lending. ROUND LA KE: Fritz Jones, 68, president, Farm ers S ta te B an k, died March 10 at a Sioux Falls hos pital. He had been president seven years. ST. PAUL: Chairman A. W. Sands has announced these promotions: Lester Davis to senior vice president and assistant to President A. Wm. Sands; Myron Gilbertson to vice president and controller; Stephen Erdall to assistant vice presidentreal estate; Dennis Prchal to assist ant vice president-retail sales and development. Wyoming News —t T*' » G LEN R O C K : Olen W right has been advanced to executive vice president at First National Bank and Herta McLagen was named to succeed him as cashier. LYMAN: Bob Morrison has joined the First State Bank of Lyman as vice president and cashier replacing R ichard Hardwell. Illinois News > $ EVANSTON: Harland L. Edwards has been promoted to chairman and chief executive officer of the First National Bank and Trust Co. here. Howard B . Silverman was named president and chief operating offi V f cer. They previously held the posi tions of president and executive vice president, respectively. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis •A. 10th and Walnut (816) 234-2000 ' INFLATION PROGRAM . . . (Continued from front page) dollar borrow ings, repos again st U .S . Governm ent and Federal agencies and Fed funds borrowed from non-member institutions). Money Market Mutual Funds. The imposition of a deposit to be maintained with the Fed equal to 15% of the increase in assets of money market mutual funds after March 14 will reduce the propor tional flow of funds available to the money market. Discount Rate. In fixing a 3% surcharge on non-seasoned discount window borrow ings by larger banks, the Federal R eserve by definition is not acting as forcefully as if it had raised the basic rate from 13% to 16%. Summary In summary, the following are my im pressions of the an ti-in flation program and its credit m arket implications. 1. The new effort that will be underway to balance the budget in Fiscal 1981 should not be construed as providing immediate relief to the credit markets or as a landmark in fiscal wisdom. 2. No action was undertaken to halt the proliferation of financing by Federal credit agencies. To be sure, Congress was urged to adopt a credit budget (including Federal gu arantees). In the m eantim e, agency financing will again be very large this calendar year. 3. The Federal Reserve will put into effect a variety of new restrain ing measures, many of which will try to limit the growth of bank loans. The increases in marginal re serve requirem ents and the su r charge on the discount rate will tighten credit, but these actions alone can hardly achieve the Fed’s objective of holding the growth of bank loans to a range of 6% to 9% . Much depends on the persistence of Fed policy in the months ahead. The unanswered question is whether the Fed will ease in the aftermath of these new measures as it did follow ing the announcement last October. The temptation may indeed be very great considering the ambivalence th a t may again show in the economy. 4. Bank profit margins will be squeezed and, if this is sustained long enough, will dampen credit growth. 5. Finally, it would seem that the peaks of credit stringency and of in terest rates are still ahead of us. If the new credit restraint program is effective, it will not only limit the availability of short-term funds but will encourage some long-term bor rowing demands. The business re cession has been brought a little closer but its magnitude still seems to hinge very much on the unfolding drama in the credit markets. □ B ank on a BANKERS’ BANKER Call 1-800-362-1688, toll-free in Iowa 4 CALL ON THE “PERFORMANCE TEAM” where com m on transactions are handled uncom m only we//. A. FIRST NATIONAL LINCOLN 0 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. WANT ADS 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 POSITION AVA ILA BLE Ag Loan Officers and Operations Officers are needed by Iowa, Nebraska and Illinois banks. Salary range from $18,000 to $26,000. Insurance license required in some positions. Employer pays fee. Write or call Malcolm Freeland, Freeland Financial Service, 306 15th Street, Des Moines, la,50309. (515)244-1863. (PA) Loan Officer/Representative— Immediate opening for a loan officer with one or two years of loan experience for a south central South Dakota branch of Northwest ern National Bank of Sioux Falls (Banco). Ag back ground desired. Send resume and salary history to: Steve Johnson, Northwestern National Bank, Box 1028, Sioux Falls, SD57101.__________________ (PA) Loan Officer— Central North Dakota bank has opening for a loan officer with agriculture degree or ag background. W ritefile JBY, c /o Northwestern Banker.(PA) FO R SA LE Burroughs L9000 minicomputer Model 9944-200 with two cassette drives Model A9490-25, stripped ledger reader. E xcellent c o n d itio n , under m a in tena nce. C ontact C ooper H anson, Data S ystem s, (402) 426-4117.____________ -_______ (FS) Banks For Sale—Southern and southwest Minnesota; $4 m illion in footings each. Good management; insur ance agencies; good communities, and good earnings. W ritefile JBW, c /o Northwestern Banker. (FS) Savings & Loan For Sale— Northern Kansas. State charter. Home office, one branch, three service offices and real estate development; $36 m illion in footings. W ritefile JBX, c /o Northwestern Banker._______ (FS) FOR SALE Complete mini-bank 10 years old. Must be moved. Phone Jim McDonough at (319) 382-3126 or (319) 583-2806. PLAZA 20, Inc. 2600 Dodge Street Dubuque, IA 52001 SERVING PROFESSIONALLY □ I would like to sell my majority bank stock. □ I would like to buy ma jority bank stock. I OPERATIONS—South Dakota bank. Supervise book keepers, tellers and do all reports. $17,000 EVP— Responsibilities w ill cover all areas for this small bank. Must be a generalist. $28,000 Please Contact: J. Mason Henry LENDING—Work in ag, commercial & real estate. Position is with Illinois bank. $14,000 Charles E. Walters Co., Inc. TRUST OFFICER—South Dakota bank. Be respons ible fo r administration, investments, reporting & mar keting. A good position. P.O. Box 1313, Omaha, Nebraska68101 Phone: (402)553-6400 AG BANKING CAREERS AG LENDING OFFICER. . .S EM inn. .. $16-$20,000 AG LENDING OFFICER. . .N W III........... $18-$22,000 AG LENDING OFFICER (2). . .Nlow a .. $15-$20,000 AG CREDIT REP, . M e m p h is ................$18-$22,000 AG CREDIT SUPERVISOR. . .Denver .. $16-$21,000 OPERATIONS—W ill oversee operations, personnel & reports. EDP experience a strong plus. $15,000 TRUST—JD a must; estate planning experience very. important. $25,000 LOAN OFFICER— Must have commercial experience ina$150M M + bank. $35,000 For more in fo rm a tio n , give L in d a — our banking specialist—a call today. LENDING— N orthw est Iowa bank. O utstand in g opportunity; will be groomed for #2 spot. $15,000 , AGRICULTURAL PERSONNEL RECRUITERS (515)394-3145 "V AG OFFICER— Livestock experience is a must for this southwest Iowa bank. $20,000 Since 1968, banks and other ag related employers have been paying us to find the personnel they need. m J A- #1— Rural Iowa bank. Outstanding opportunity. Must be capable of running the bank completely. $30,000 ASST CASHIER— New position. Experience a must; charge card experience a big plus. $13,000 3Q ri CAREERS, INC. KA AG OFFICER— Growing Nebraska bank is expanding itsag department. Spot offers excellent promotability. BANKING & INSURANCE. . .Io w a ........$14-$18,000 LOAN OFFICER—Solid installment or commercial experience needed. Experience in both a big plus. $19,000 f- VP—Work in commercial and direct junior officers. Looking for strong experience. $28,000 New Hampton, IA 50659 Estate Appraisals Purchase off Collections t *0) Sale of Rare Coins y ,* Reliable and respected service for over 20 years Used by bankers throughout the midwest Banking, Financial & Business Personnel Iowa and Nationwide Ben E. Marlenee Coins CAPITAL PERSONNEL SERVICE 913 Locust Des Moines, Iowa 50309 515-243-8064 714 Central National Bldg. 515-283-2545 Des Moines, Iowa 50309 PARTIAL LIST OF AVAILABLE POSITIONS * >- POSITION WANTED BANKING POSITION WANTED— Experience as loan officer for finance company and insurance sales. Business and economics degree. W ill relocate. Write file JBV, c /o Northwestern Banker. (PW) BANKERS WANTED INST. LN.—Wyoming ........................................16/18 INS. MGR.—W y o m in g ................................... A f-*., ÀI 18 + AGRI. LN.— Nebraska ....................................... 16/18 Comprehensive Packages 1. 2. 3. 4. 5. B la n ke t B on d s A u to m o b ile s S in g le Inte re st Fire & L ia b ility SERVICE CR. CD.— Colorado ......................................... 25 EXEC. V.P.— Missouri ...................................... 35 C.E.O.— Kansas ............................................... 75 INS. MGR.— Iowa ............................................. 18 + C.E.O.— New charter in Missouri .................... 25 fiUTümfiTED SYSTEH1S □F ÌDkUflfnC. Just a sample of current orders; others available. Send resume and salary history to: 301 N. Ankeny Blvd., Suite 220 Ankeny, la 50021 515-964-1358 Box12346 / North Kansas City, Missouri 64116 (816) 474-6874 TOM HAGEN & ASSOCIATES _____ “It takes a hanker to know one” Voi. 8 No. 49 Northwestern Banker Newsletter [USPS 873-300] is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 25 cents per copy, $8.00 per year. Second class postage paid at Des Moines, Iowa. 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