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The idea was to tap into the pent-up consumer demands of World War II baby boomers. "And I said, 'Look, we just put five years of our life in a brown suit carrying an M1 rifle, and we want the refrigerator now.' '' Before long, banks all over were using credit cards to compete for new customers. "And the old guy with a green eyeshade gave you credit or he didn't." Still, the first decade of "credit cards drops" had produced little profit and a lot of chaos.

But the concept of far-off banks soliciting the masses with open-ended lines of credit challenged the traditions of small-town lending. People were outraged by what some called usurious temptations, and bankers were flooded by massive defaults.

In 1966, an incident dubbed "the Chicago debacle" unleashed an intense wave of public venom.

"The Chicago Debacle" It was just before Christmas when five million cards were dropped by a group of Midwestern banks scrambling to be the first to reach the untapped Chicago market of holiday shoppers.

The trouble, simply put, was that the rate of inflation exceeded the amount of interest Citibank was allowed to charge its credit card customers under New York usury laws.

But the bankers saw opportunity and salvation in the plains of South Dakota. That South Dakota saved Citibank.'' Those long ago phone calls were a pivotal moment in the ascendancy of America's credit card industry.

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