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Vol. 4 No. 18 Des Moines, Iowa September 1,1975 Forecast: ‘‘Satisfactory” Recovery A “ satisfactory” rather than “ dynamic” recovery of the nation’s economic health is forecast by the chief econom ist o f the F irst National Bank of Minneapolis. V ice President H arvey N. Daniels, in his semi-annual econo mic forecast, projects real growth in the 1976 Gross National Product of 5.8% . “ This won’t be the typical re covery where you have a spurt of rapid growth early in the upturn process,” he explains. “ Rather, we are likely to see a gradual, but steady, improvement ... and that could be good for the long haul.” He points to six factors that make this recovery different from those which followed earlier reces sions. Housing Picture “ One, housing has not recovered as dynamically as it has before.” He attributes this to the rapid increase in the cost of housing — 35% over the past two and one-half years. Land costs, construction costs, materials prices and mort gage interest rates were all cited as contributing to a situation which finds many people in need of new housing but unable to afford it. “ Second, auto sales, while they have made good recovery, have not shown the typical post-recession surge.” One reason cited is the increased cost, which amounted to about 10% on 1975 models, with another 6% increase expected for 1976. Consumers also are concerned about the gas outlook, resulting in HARVEY DANIELS a further hesitancy to buy. Car sales next year are expected to reach 9 lA million, compared with the 12 million level of 1972 and 1973. Inflation “ Continuing concern about in flation is the next factor. Although the rate has come down from 12 % in late 1974 to the current 6% , that level still is unsustainable and will continue to inhibit the spending habits of business and consumers.” Mr. Daniels cited the experience of the early and mid 1960s, with an inflation rate of about 2% , as a period when the economy per formed at its best. “ The tug of war going on between the Administration and Congress in the areas of spending and taxes is the fourth factor. The Administration is trying to dampen down the rate of recovery in an effort to prevent a run-away burst which would fuel inflation. Con gress, on the other hand, will press for more tax cuts as an economic stimulant.” Mr. Daniels said he believes a moderate fiscal policy will result. Monetary Policy “ Monetary policy is the next element, with the Federal Reserve Bank’s principal long-run concern being inflation. The policy will be to continue to try to moderate growth in the money supply. That will contribute to a lower rate of real growth and will mean a rise in interest rates, thus dampening down the recovery process.” Never theless, M r. D aniels sees a respectable 6% rate of real growth for 1976. “ Finally, the economies of other principal industrial nations of the world are having trouble, with problems of recession persisting beyond ours, resulting in less foreign demand for our goods and services.” He sees that situation to continue for the next several quarters. FOR FULL CORRESPONDENT BANKING S E R V IC E We’re as near as your phone NEBRASKA CALL TOLL FREE 800 642-9917 - ADJACENT Jay Bordewick https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bob Brown STATES CALL TOLL FREE 800 228-9511 - . . . US National Bank Omaha, Nebraska M E M B E R FE D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N 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 MEMBER FDIC-FRS Iowa News DES MOINES: Tom Huston, president of the Columbus Junction State Bank, has been appointed superintendent of banking, effec tive September 1, by Governor Ray following the resignation of Cecil W . Dunn. Mr. Dunn will return to Eagle Grove where he heads the S ecurity Savings Bank. Mr. Huston is a former president of the Iowa Bankers Association. GRUNDY CENTER: L. C. Pike, president of the Farmers Savings Bank, has announced the election of James E. Miller to the bank’s board. Mr. Miller is a Grundy livestock farmer and replaces A. V. Dieken who retired in May after 40 years in banking. Nebraska News BEATRICE: Vernon Mulig has been promoted to vice president of the Beatrice State Bank. CRETE: The Crete State Bank is holding a reception in honor of the fiftieth banking anniversary of Thomas J. Aron at the bank on Sunday, September 14, from 2 to 5 p.m. Mr. Aron has been associated with the Crete bank for 50 years, having served as its president since September of 1943. EW ING: Ed Vackiner, executive vice president of the Elba State Bank, has been named president of the Farmers State Bank. The Ewing bank recently was pur chased by Dan Huff & Associates. GRAND ISLAND: Commercial National Bank and Trust Company has announced the follow in g promotions: vice president, Rick Harbaugh; second vice presidents, John Jorgensen, commercial loans, Charles Whitney, operations de partment manager, and Howard Fairbairn, agricultural loans; as sistant operations officer, Maxine Blunk, and controller and assistant trust officer, Tom Wrenholt. OM AHA: The board of directors of two Banco banks have announced executive changes. The U. S. National Bank has made the following promotions: Kermit Han sen to chairman and chief executive officer, and Donald J. Murphy to president and director, effective O ctober 1. The N orthw estern National Bank has named Edward A. Kohout president, effective October 1. OM AHA: The Southwest Bank of Omaha has announced several appointments: Donald Newberg, A good correspondent bank relationship is still built by good people. Yours and ours. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Terry Martin Vice President senior vice president; Gary W oods and Gary Turner, vice presidents, and Jam es Francis, assistant cashier. Mr. Turner formerly was vice president of corporate banking for the Southeast First National Bank of Maitland, Fla. Mr. Francis is the son of Perry Francis, bank president. Minnesota News DETROIT LAKES: C. Leroy Larson has been named president and director of the Citizens State Bank. DULUTH: Larry D. Johnson, formerly vice president and cashier of North Shore State Bank, has been elected president and director. In other board action, Dolores Hartikka was promoted to vice president; Frank Bolos to cashier and Douglas H. Lewis to assistant cashier. M IN N E A P O L IS : N orthw estern National Bank has announced that it has filed an application with the Comptroller of the Currency to establish a detached facility at Chicago Avenue and 8th Street across from Metropolitan Medical Center and the New Hennepin County Hospital. ST. PAUL: John V. Pierceall has been named vice president and head of commercial loans at Commercial State Bank. He has been with Richfield State Bank & Trust Co. Call me toll free . . . 800 332-5991 - Merchants ififc National Bank 151 Cedar Rapids. Iowa 52401 A BANKS OF IOWA BANK CALL ON THE “PERFORM ANCE TEA M ” where comm on transactions are handled uncommonly well. . * FIRST NATIONAL LINCOLN 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. VERMILLION: The Vermillion State Bank will hold a grand opening on Friday, September 12. ¡ry r North Dakota News FARGO: Charles A. Nelson has been promoted to agricultural loan officer and trust farm manager at Merchants National Bank and Trust Company. He succeeds Roy H. Johnson, recently appointed manager of the bank’s southside office. TOWNER: Granville and Anamoose have been approved as paying and receiving stations for Pioneer State Bank. Arlys Winkler will operate the Granville station and Norma Martin the Anamoose station. ABA Sponsors “Lincoln” Special on September 3 i :V Correspond with the bank that knows the importance of your bank to your community. “ Lincoln, the Unwilling War rior,” fourth in a series of awardwinning television specials based on Carl Sandburg’s Pulitzer* Prize winning biography, will be co-spon sored by the A B A on NBC-TV September 3 at 9 p.m. The A B A has contracted to co-sponsor each of the six, hour-long, color specials, which feature Broadway Tony Award winner Hal Holbrook in the title role of President Lincoln. In “ L incoln, the U nw illing Warrior,” Lincoln is portrayed as he takes up office and his duties as Commander-in-Chief, including an emotionally charged scene when he learns that his adopted son, Ells worth, has become the first Union officer to die in the war. The September 3 special condenses the Civil War period in poignant scenes of defeat and victory, illustrating Lincoln’s grief at the terrible loss of life. The remaining two programs will Iowa-Des M oines National Bank s SEE Voldy Vanags MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION be aired during the 1976 American Bicentennial Celebration year in February and April. Each program to date has won special awards. South Dakota News The South D akota Bankers Association will conduct its five group m eetings the week o f September 8. SDBA President Ted Schanzenbach, president of First National, Selby, will address all meetings, each of which will feature the same program: 2:00 Registration. 4:00 Call to Order—Group Presi dent. Welcome—SDBA President Schanzenbach. Open Discussion—Electronic Funds Transfer, Individual Retirement Accounts, HR- 10. Business Meeting. BE YOUR AREA’S LEADING AG BANK Send Doane's newsletter. Farming for Profit, to your farm customers each month. Over 800 banks do. It's filled w ith facts to help farmers boost in come. They appreciate the information and the bank that sends it. Your bank heading on every issue. For six sample issues free, write: D. R. Gorr, Manager, Bank Services. D LHJ/MNC Doane Agricultural Service. Inc 8900 Manchester Road St Louis, Mo 63144 (3 1 4 )9 6 8 -1 0 0 0 Don Rainer, Heard the latest? Talk to a man from Drovers BERNIE MILLER ED RIETZ, JR. FRED CUMMINGS Experienced help for all your correspondent banking needs Call 312/927-7000 A gricultural R epresen tative . . . wants to build a solid correspondent banking relationship with you. B ankers Trust Use our toll free WATS line: 800-362-1688 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6:30 Social Hour. 7:30 Banquet. Speaker: Dr. Wilbur Schaeffer, Kansas City— “ The Future of the Banking Industry in This Atomic A ge.” Following is the date, location and president of each group: IV —Sep. 8, 1st National, Mobridge. Bob Clair, cash., Fort Pierre Natl. V —Sep. 9, Howard Johnson’s Motor Lodge, Rapid City. Hurley Wilson, v.p.-m gr., 1st Natl, of Black Hills, Hot Springs. I l l —Sep. 10, Western Inn, Cham berlain. Jens Christiansen, a.v.p., Natl. Bank of S.D ., Wessington Springs. I — Sep. 11, S taurolite Inn, B rook in gs. Tom G arry, v .p .-m g r ., N orthw estern Natl., Dell Rapids. I I —Sep. 12, Guest House, Watertown. H. A. Bill Sands, exec, v.p., Deuel County Natl., Clear Lake. 6th & Locust/ Des Moines, Iowa 50309 1,M!Drovers National Dank o f Chicago 47th and Ashland Ave. Chicago, III. 60609 Member F.D.I.C. POSITION W A N T E D Person, age 35, with 8 years experience in loans and sales finance and held licenses for insurance sales and investment notes in Nebraska for years 1973-74. References available. Will relocate -preferably in southeastern Nebraska area. Married and 2 children. Write Box MFK, c /o NORTHWEST ERN BANKER, 306 15th Street, Des Moines, Iowa 50309. EQUIPMENT LEASING Let us explain the Bankers Participating LeasePlan. High-yield for y o u ......a n d ....... we take the risk! FIRST INSURED SERVICES 545 31 st S t. - Des Moines, Iowa 50312-515/ 282-5008 R. L. “ DICK” SELLON P. D. “ DUANE” DeVAULT B AN K S FOR SALE $12MM assets, 65%, 800,000, S. Ind. — $13MM assets, 88%, 1,150,000, W. 111. — $40MM assets, 51%, 2,950,000, 111. $50MM assets, 51%, 3,900,000, Ind. — $5MM assets, 70%, 580,000, 111. — $9MM assets, 60%, 859,000, 111. — “Ray E. Reents” , Broker, 2730 S. Mac Arthur, Springfield, 111. 62704. FOR SA LE POSITION A V A IL A B L E Trainee position for young person in $11MM bank in northwest Iowa. Write Box OOB, c / o N ORTHW ESTERN BANKER, 306 15th Street, Des Moines, Iowa 50309. SA L E OR LE A SE Two section modular bank office 24’ x 38’ . Could be used as permanent office. W ill m ove and install on yoür foundation. For additional information, Call: 1-515/276-8391. R ecordak Reliant 300 M icrofilm er, Central State Bank, State Center, lowa. Phone-515/'483-2505. One 450-40 pocket NCR proof machine with encoder and service contract in force. Contact: The First National Bank of Hutchinson, Hutchinson, Minn. 55350. 612/896-1635. Social security direct deposit film strip and cassette for Dukane A-V Matic viewer. Eight programs left. Excellent for in-house training or sign-up seminars. Cost is $30. Contact John Brewer, Iowa Trust & Savings Bank, Centerville, Iowa 515/856-6375. NCR Class 450 - 28 Pocket Proof Machine. Under continuous service contract, nine years old. Contact: Merlyn L. Meyer, The First National Bank, Syracuse, Nebr. 68446. Phone: 402/269-2145. POSITION A V A IL A B L E Progressive bank in Iowa Great Lakes area has an immediate opening for an executive officer with insurance experi ence. Starting salary $20,000. Write Box MAN, c /o NORTHWESTERN BANK ER, 306 15th St., Des Moines, Iowa 50309. When you need a little help call us on our toll free wats number 8 0 0 - 362-1615 EDDIE A. WOLF POSITION A V A IL A B L E Wanted an agricultural loan person and correspondent banker, experience de sired. Large North Dakota bank, ideal community, good living conditions, colleges, etc. Send resume to Box LLR, c/o NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. POSITION A V A ILA B LE FOR SALE FOR SALE FOR SA LE POSITION A V A ILA B LE Immediate opening in large North Dakota bank for officer to head com mercial banking d ept.; officer to supervise 3 divisions including cor respondent banking, $120MM in loans, and would be a member of top manage ment team. Ideal community, with good living conditions and colleges. Send resume to Box DKR, c/o NORTH WESTERN BANKER, 306 15th St., Des SERVING PROFESSIONALLY Bonking, Finonciol & Business Personnel Iowa and Nationwide CAPITAL PERSONNEL SERVICE 2 0 4 Securities Bldg. 5 1 5 -2 8 3 -2 5 4 5 Des M oines, lowa 5 0 3 0 9 W ILLIAM B. GREAVES RUSSELL G. GREGORY S. GERALD B. PLAGER WOLFE MURPHY C o rre s p o n d e n t B ank D e p a rtm e n t Central National Bank & Trust Company DES MOINES (515)243-8181 MEMBER FDIC ’ LOCUST AT SIXTH /FIFTH & GRAND / 35TH & INGERSOLL / WEST DES MOINES City correspondent has excellent op portunity for person with some banking experience. Some travel required. Send resume in confidence to Box BXL, c/o NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. W ANTED Bank in Iowa or northern Illinois up to $35MM. Principals only. Write Box MPC, c /o NORTHWESTERN BANK ER, 306 15th Street, Des Moines, la. 50309. POSITIONS AVAILABLE DATA PROCESS— Need jun io r & senior programmer w ith bank experience. Midwest. CORRESPONDENT-AGRI-LOAN— Unusual opportun ity fo r one capable of handling large agri credit lines and correspondent experience. C O R R E S P O N D E N T-C O M M E R C IA L L O A N S — M u st have experience In large credit lines, including agri loans and prefer some correspondent experience. COMMERCIAL LOAN — Prefer 3-5 yrs. experience in lowa and Nebraska. EXECUTIVE VICE PRESIDENT— lowa & Nebraska banks. Must be mature and experienced in commer cial loans. C ASHIER — M u st have 2-3 y rs . o p e ra tio n s & supervisory experience. O pportunity to learn com mercial lending. A G R I-LO A N D IVISION H E A D — H o ld in g c o m pa n y wants to expand agri-loan and create new division. AGRI-LOAN— Must have good ag education & be able to talk the language of young farms & feeders. “IT TAKES A BANKER TO KNOW ONE” TOM HAGAN & ASSOCIATES Box 12346 N .K.C., Mo. 64116 (816) 474-6874 Vol. 4 No. 18 Northwestern Banker Newsletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 25 cents per copy, $6 per year. Second class postage paid at Des Moines, Iowa. Address all https://fraser.stlouisfed.org mail subscriptions, changes of address (Form 3579) manuscripts, mail items to above address. 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