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October 18.1971 Des Moines, Iowa Vol. 1. No. 24 ance, clinics and Medicare, Mr. Larkin said, “ Let us hope the American Bankers Association will be more responsive to social changes.” Cites Warning on Credit Cards >>• Ì A senior executive o f the Bank o f America has warned Rocky Mountain | regional bank credit card officials their industry faces^ “ onerous” federal regula tion unless they deal promptly with customer complaints and make credit card use more appealing. Kenneth Larkin, senior vice presi dent o f the Bank o f America from San Francisco and one o f the originators o f the BankAmericard system, voiced the warning in an address to the Rocky Mountain BankAmericard convention at the Cosmopolitan Hotel in Denver last week. A fter a brief review o f how Bank Americard originated in California and came into wide usage throughout the nation, Mr. Larkin noted that the Senate committee o f Sen. William Proxmire, D-Wis., will begin holding hearings soon on the Fair Credit Billing A ct, legislation which will substantially affect the credit card industry. “ It may be called the Fair Credit Billing A ct, but we don’t think it’s fair,” said Mr. Larkin, who is also chairman o f the installment loan committee o f the American Bankers Association. Mr. Larkin said the Proxmire bill had been prompted by “ 325 letters that reached the senator.” Only 25 o f these, he said, complained about bank servicing o f credit card account and most fre quently customers complained about dif ficulties with computer billing. “ These complaints (to Proxmire) should have never com e up,” Mr. Larkin said. “ When the customer writes us a K . V . Larkin complaint he should receive a prompt response and the problem should be dealt with.” In the area o f rates and discounts, Mr. Larkin said banks participating in credit card programs must “ maintain merchant discount schedules, particular ly in states where interest’ rates are limited. In these states, we must find other ways o f producing fees.” He said banks and the credit card industry should “ take better care o f our customers to stop the swell o f protests to legislators.” “ We can’t irritate our customers, we’ve got to get them do love us,” Mr. Larkin said. By way o f accomplishing this end, he called on the bankers to undertake a “ vast educational effort” through the use o f advertising to inform prospective cus tomers about the advantages o f credit cards. Noting that the American Medical Association has stood fast in its opposi tion to measures such as medical insur He said Sen. Proxmire’s original pro posal for the Fair Credit Reporting Act., another piece o f recently passed con sumer legislation, was “ just horrible.” “ By making reasonable protesta tions, however, we (the banking in dustry) were able to get a bill we could live with,” he said. Mr. Larkin said that among other things the pending credit legislation would remove the holder-in-due-course provisions for credit contracts and im pose the right o f the consumer to sue the credit grantor for “ consequential dam ages” if he should somehow incur harm as the result o f a credit purchase. Noting the financial industry would strongly object to these and other fea tures o f the Proxmire bill, Mr. Larkin said, “ If we can’t prevail upon Mr. Proxmire to m odify this bill, the Ameri can Bankers Association will have to introduce its own legislation and have it put forward by someone more kindly disposed to our industry. “ But if we do nothing, we have a good chance o f having these changes rammed down our throat.” Mr. Larkin also called upon bank management to play a stronger role in all legislation and change “ which modifies the social contract.” He said the attitudes o f some con sumer advocates, specifically Ralph Nader, are “ malevolent toward the exist ing system.” For Full Correspondent Banking Service W e're as near as your phone A CALL Jay Bordewick https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Howard Nielsen 536-2000 MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION ★★★ U.S. N ATIO N AL BANK m e BanK r a a r H e irs YOU GeT THinGS Done N a t io n a l B a n k DEPOSITS INSURED TO $20,000 BY F.D.I.C. IO W A NEWS ARNOLDS PARK: A charter has been granted by the Comptroller o f the Cur rency to E. W. Maser and associates for a bank to be known as the Lakes National Bank. Capitalization will be $300,000. Capital — $100,000; surplus, $100,000, and reserves, $100,000. Mr. Maser has maintained an office in Arnolds Park through the Sibley State Bank. An original application for a char ter was denied January 26, 1971, and the current application was refiled in August. The Iowa Banking Department has denied an application for a proposed state-chartered bank, to be known as the O koboji Marine State Bank, and Polk County District Judge A. B. Crouch has ordered that the charter be granted. The Attorney General filed a m otion for a new trial and to correct, enlarge and amend the finding. This m otion was overruled by the court, and it is antici pated that the Attorney General may now file an appeal. CRESCO: Cresco State Bank has pur chased a nearby site for a possible new building. Tentative plans for con struction have been set for April 1, 1972. Vto S i O U X C i t y Ronald F. Kocher, cashier o f the First National Bank, Riceville, has re signed to become cashier and director o f the Cresco State Bank. EDGEWOOD: Community Savings Bank is now in its new quarters. An open house is planned later this month. LE MARS: Bids will be taken on the new building for the First National Bank on October 28. VENTURA: Controlling interest o f the Ventura State Bank has been sold to Earl Nelson, Iowa City, and John W. Evans, Jr., Clear Lake, by Robert H. Isensee and associates o f Mason City. Messrs. Nelson and Evans are both directors o f the Community State Bank in Clear Lake. Nelson, former Clear Lake resident, is president o f the Hawkeye State Bank in Iowa City and associated with the Kalona Savings Bank and the Thornton State Bank. Mr. Evans is the owner and operator o f Cashway Lumber Co. and Atlas Recre ational Vehicles, Mason City; chairman o f the board o f the Community State Bank, and director o f the board o f the Hawkeye State Bank, Iowa City. M IN N ESO TA NEWS MINNEAPOLIS: David L. Tremmel will manage the London office o f the North western National Bank o f Minneapolis. Formerly in charge o f the bank’s busi ness in Europe, Mr. Tremmel will move to the new office when it opens in January. OKLEE: Grand opening ceremonies were held October 9 in the new quarters for the Security State Bank. The bank has actually been in its new facilities since this past summer. The uni-level bank has 2,100* square feet. WANAMINGO: K. L. Syverson has been named president o f the Security State Bank. He has been serving as vice presi dent, and he succeeds the late A. K. Syverson. Gary E. Bakko, cashier, has been named as a director. ZUMBROTA: John A . Perra, banker from Hope, Minnesota, recently pur chased controlling interest in the Far mers Security State Bank from Mrs. Harvey M. Johnson. Mr. Perra is presi dent and cashier o f the Farmers State Bank, Hope. N E B R A S K A NEWS OMAHA: Dedication o f First National Center will be held on Monday, Novem ber 29, in conjunction with the First National Bank o f Omaha’s 13th annual Beef Cattle Conference. The program precedes an entire week o f special events, which includes the open house for the new 22-story First National office build ing. OMAHA: George W. Oldaker, manager o f Younker-Kilpatrick’s Westroads store, has been named to the board o f the First Westroads Bank. Richard A. Farber has been prom oted to assistant cashier. SO U TH D A K O T A NEWS CANISTOTA: Joe Doblar has joined the Union National Bank as manager o f the Security Insurance Agency and assistant manager o f the Vermillion bank’s office in Canistota. FAITH: Farmers State Bank held a grand opening in its new bank building re cently. Chartered in 1910, the new quar ters are constructed on the site o f the original building. Harriette Allison We are prepared to offer a confidential service to both the employing bank and the applicant. ankers B PERSO NNEL P ^ g E A R C H , INC. 1314 Register and Tribune Building Des Moines, Iowa 50309 Phone: Office 515/282-4446 Home 515/961-5419 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WISCONSIN NEWS MADISON: The office o f the Com missioner o f Banking has announced that there will be no call for quarterly state ments o f condition in the third quarter, even though Federal supervisory authori ties issued a call. State banks insured by FDIC and all national banks must submit reports. Introducing our newest employee. Microfiche Reader. Central National now has available to its correspondent banks a new type of microfilm reporting system. It’s called Microfiche. There are lots of advantages to this new reporting medium for you. 1. better, more frequent reports resulting in more complete information. 2. more information within easier reach. 42 ledger sheets on one film. 3. easier to use reports resulting in faster response to inquiries. 4. virtually eliminates storage problems. Instead of a daily printout you get a roll of film. Records will be sent to you on film which means no refilming problems. 5. reduces payroll costs and training time. You can review 42 ledgers at one time. There are more reasons why Microfiche can help you. We’d like to show you. Visit us at the bank or our hospitality suite during the Iowa Bankers Convention. Meet our newest employee! W 01 Central National Bank & Trust Company https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LOC LOCUST AT SIXTH AVENUE, DOWNTOWN DES MOINES, PHONE 243-8181. MEMBER FDIC. 4 <4 Is Bank Automation in Y our Future? J ■ IT ¡g w p in t JH u | John Emmons 1 Call John Emmons or Homer Jenson at Capital City Sana phone 515—244-5111 ILLIN O IS NEWS CHICAGO: Election o f 14 new officers o f The First National Bank o f Chicago was announced by chairman Gaylord Freeman. They are: J. Christopher Alstrin, elected a bond investment officer; William E. Bennett, elected a correspon dent banking officer; Merrill O. Bums, Jr., elected a staff officer; William R. Lyman, elected an assistant manager; Napoleon Nobay, elected an assistant manager-international section; Jorge Padilla, assistant manager-international section; Robert M. Schneider, a bond investment officer; Leonard J. Séraphin, a trust officer; Gregory W. Serbe, a bond investment officer. George E. Smith, a trust officer; George H. Starmann, III, a trust officer; Keith Tancock, an assistant manager, international section; Stephen Thomas, an assistant manager, inter national section, and David T. Vass, a trust officer. First Chicago Corporation, parent company o f The First National Bank o f Chicago, plans to file an application for the listings o f its com m on stock on the NYSE, in addition to the present listing on the Midwest Stock Exchange. A (EB CAPITAL CITY BANK E A ST FIFTH A N D LO C U S T • OES M O IN E S. IOW A 50309 preliminary application was filed Sep tember 20. NAPERVILLE: Darrell C. Overcash has joined the First Ogden Corporation as an accountant, according to Vernon S. Hoesch. View 1972 Business Prospects “ The nation’s ‘long awaited econ omic b oom ’ will develop in the first half o f 1972.” This is the prediction made by Leon B. Gould, economist for the Frank lin National Bank, New York. He be lieves that the real output will expand at a 6% annual rate, “ rapid enough to get the jobless rate down to about 5% and boost pre-tax corporate profits by 20% over 1971.” But he warned, “ prospects for per manently curtailing inflation are not optimistic. Although temporary gains against inflation may show up due to distortions in the various price indices as a result o f the wage-price freeze, the long run problem will remain.” Mr. Gould described the situations as seeking to fight inflation with controls and advance econom ic activity with easy money and whopping Federal budget deficits. We know the importance of your bank to your community. Correspond with us. IO W A-D ES M O IN ES NATIONAL BANK Larry Welch Member Federal Deposit Insurance Corporation “ Controls may temporarily elimi nate some o f the excesses o f cost-push inflation resulting from large wage in creases and they may also lower ‘infla tionary expectations’ for a time. But, controls will not solve the long-run prob lem o f inflation; only Government selfdiscipline can do that.” Nevertheless, Mr. Gould felt the “ dramatic new econom ic proposals” an nounced by President Nixon August 15th will further spur econom ic recovery this year. He forecast a gross national product rise o f 8.1% to $1,053 trillion with pre-tax profits growing about 13% over 1970. However, he pointed out that the increase in GNP and profits “ will look stronger partly because o f down town revisions o f last year’s results.” Joblessness will average close to 6% for the year, he said, but should begin to drop during the fourth quarter. The outlook for interest rates also depends upon the policies o f the Federal Reserve and the Government. The Fed has three policy choices, Mr. Gould said. It can continue to expand the money supply at a 12% annual rate; it can sharply reduce the growth rate o f the money supply to 2%-3% for the rest o f the year; or the Fed can take a position between those two extremes. The third alternative appears to be the most likely, Mr. Gould pointed out. The first choice would temporarily keep interest rates low , but inflation would get worse as controls crumble. The sec ond alternative would result in a sharp rise in short-term rates and reduced econom ic activity with rising unemploy ment. This would be politically un acceptable, despite the fact that such a policy would reduce long-term interest rates. The third and most likely alternative would entail a growth rate for the money supply o f about 6% for the balance o f the year. “ Such a policy would result in a gradual rise in short-term rates, but it would also place upward pressures on long-term rates as the resultant econom ic boom reflects increased credit demands and an eventual worsening o f inflation. * The banks may be caught in the middle o f the boom and inflation, Mr. Gould suggested. The Administration has asked lending institutions to “ volun tarily” hold down interest rates charged on loans. F Call on the "Perform ance Team?.. where common transactions are handled uncommonly well. FIRST NATIONAL BANK & TR U ST COMPANY OF LINCOLN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13th and M Street • Lincoln. Nebraska 68501 • Member, F.D.I.C. i CONVENTIONERS! Don't I know you ?? If not, this may be an ideal time for us to get to g e th e r-a t the Iowa Bankers C onvention-particularly if you want to buy or sell Richard C. Newlin 3 b3nk* As you may or may hot know, negotiating for the purchase and sale of banks Is my sole endeavor, and 1971 has been an excellent year for us. We are pleased to announce that we have many qualified purchasers (with money), and a number of good bank opportunities available now! If for some reason we cannot get together at the Convention, simply complete the appropriate blanks below and return this insert to our office at your earliest convenience. IF YOU WANT TO SELL I might be interested in selling majority stock in the _____ ______________________ Bank of __________________________Iowa. Realizing of course, that I am making no commitment herein, I would welcome the opportunity to v is it with you regarding current market values and other pertinent matters concerning the sale of banks at this time. You may contact me by calling Area Code Telephone..,------ ------------ *-------------or w ritin g __________________ _______ , Iowa. I understand that you are w illing to meet with me in privacy for counseling and/or appraisal of my holdings at no cost to me, and that you promise to keep such a meeting in complete confidence. Signed_______________________ ___ ______________ — — Address_______________ ______________________________ IF YOU WANT TO BUY I would like to buy majority stock in a bank located in the state o f____________________________ Please send me your Purchasers Application so that I may become registered with your firm. I under stand that I am under no obligation to you unless you are successful in your efforts to consummate a bank acquisition on my behalf. Signed ____________________________________— ---------— Address................................. .. ... .................................................... ★ * * * ★ * * * * * * * * h h it it it * BANK INVESTORS 3521 BEAVER AVENUE DES MOINES, IOWA 50310 Richard C. Newlin, President Office Phone Number 515-277-6211 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Home Phone 515-276-0038 (You may write for references) 6 you’re in first naNonal territory firstnational bankof omaha Christy Armstrong Leo Kane Bob Scott ‘WE HAVE WHAT YOU WANT in a correspondent bank’ American Trust and Savings Bank 9TH AND MAIN. DUBUQUE. IOWA M C M B C ft. r o i c • F its C O LO R A D O NEWS GREELEY: U. S. Supreme Court Justice Byron R. White has granted a stay o f a U.S. District Court order dismissing a Justice Department suit to block acquisi tion o f the $40.8 million-deposit First National Bank, Greeley, Colo., by $589.6 million-deposit First National Bancorp., Denver. The Justice Department Sept. 24 filed a notice o f appeal in the case, marking the first time Justice has de cided to try to bring a potential com pe tition case involving commercial banking to the Supreme Court. Tne Greeley case was the fifth con secutive defeat for Justice at the district court level in'its campaign to establish in commercial banking the principle that affiliation between potential competitors is a violation .of the antitrust laws. The department did not try to appeal any o f the previous four decisions. Mrs. Ruth D. Harrison Heads Bank Women Ruth D. Harrison, assistant vice pres ident and director o f advertising and public relations with the Irwin Union Bank & Trust Company in Columbus, Indiana, has been elected president o f the National Association o f Bank Wom en. She succeeds Mrs. Ruth D. Bryant, assistant vice president, Memphis branch, Federal Reserve Bank o f Saint Louis. New Regional vice presidents in clude Mrs. Lois A. M orlock, executive vice president, First National Bank, Bowling Green, Ohio (Lakes Region); Miss LeVetta Hosier, executive vice presi dent, Fullerton National Bank, Fuller ton, Nebraska (Midwest Region); Miss Marjorie A. Terhaar, assistant manager, Northwestern National Bank, Minnea polis (North Central Region), and Mrs. Theo F. Bartschi, executive vice presi dent, First State Bank, Shelby, Montana. Mrs. Betty Steele, vice president and secretary, Bren ton Banks, Inc., Des Moines, is the new NABW treasurer. WANT ADS Rates 25 cents per word per insertion. Minimum: 12 words. NORTHWESTERN BANKER 306 15th St., Des Moines, Iowa FOR SALE D iebold R ekord esk , tw o hour fire rating, used for sa v in g s c a rd s, in stallm ent loan ca rd s, and storage for signature ca rd s. C ontact Ed R osen b erg er, M innesota State Bank, 478 South R obert Street, Saint P aul, M innesota 55107. T eleph one (area cod e 612) 2 2 2 -5 5 3 1 . TRUST OFFICER T o manage growing trust department in $60 m illion bank. Must be a g g re ssiv e and have d iv e rsifie d e x p erien ce. Age 30—45. L egal b a ck ground preferred. E xcellen t oppor tunity. Write B ox B T O , in care of NORTHWESTERN B AN K ER, 306 15th S t., Des M oines, Iowa 50309. ÛÛ Bank Under the Big CENTRAL NATIONAL gg TRUST OFFICER A progressive Eastern Iowa bank with young management staff has position available for young man in growing trust department in the areas of trust, administration and new busi ness. Legal background preferred. Send resume and salary requirements to: Box EIB, c;/o NORTHWESTERN BANKER, 306 - 15th St., Des Moines, Iowa 50309. FOR SALE NCR Class 2000 Proof Machine in excellent condition. Write or ca ll: Sidney National Bank, 1108 - 10th, Sidney, Nebraska 69162. Telephone (area code 308) 254—4525. FOR SALE NCR C la ss 400-200 E lectron ic * A c counting M achine, le ss than three years old . T his is the ideal machine for s a v in g s , loans and a ll your general b o o k s . Write or c a ll: WNX, 515 E ast 5th, S co ttsb lu ff, Nebraska 69361. T eleph one (308) 6 3 2 -6 1 0 1 . LOWER YOUR FARM LOAN RISK By sending him DOANE’S Farming For Profit, the hard-hitting, factfilled monthly newsletter that pro vides help in management, produc tion and marketing. Free sample subscription for 6 months. Write D. R. Gorr, DOANE Agricultural Ser v ice , Inc., Dept. 701, 8900 Man chester Road, St. Louis, Missouri 63144.___________________ LA SALLE can save you time during bank examinations Call our Correspondent Banking Departmént, and we’ll call the Fed or any other Correspondent Bank. We guarantee to Have your safe-keeping list and statement out o f our bank in one day! Call Cy Kirk or Max Roy at the La Salle National Bank in Chicago today. Telephone (312) 443-2774._______________________________ ¡ LOAN OFFICER E xperien ced loan o fficer capable of generating sound loans in metro politan area of m idwest. Write F ile WNC, NORTHWESTERN BAN K ER, •306 Fifteenth Street, D es M oines, Iowa 50309. "The Bank That Cares’ BANK TRUST M em ber Federal Deposit insurance Corporation COMPANY POSITION A V A IL A B LE T o head country bank. Insurance e x perience h elpfu l. Good opportunity for the right man. Write F ile CN B, NORTHWESTERN BANK ER, 306 15th S t . , D es M oines, Iowa 50309. Voi. 1. No. 24 Northwestern Banker Newsletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 254 Per copy, $6 per year. Second c la ss postage paid at D es Moines, Iowa. Address all https://fraser.stlouisfed.org mail subscriptions, changes of address (Form 3579), manuscripts, mail items to above address. Federal Reserve Bank of St. Louis
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