Logansport Pharos-Tribune from Logansport, Indiana • Page 8

Page 8 Pharos-Tribune, Logansport, Indiana Tuesday, June 26, 1984 Business '84 Deficit So Far: $140.2 Billion WASHINGTON (UPI) The federal government accumulated $140.2 billion in 1984 debt by the end of May with four months left to go in the government's fiscal year, the Treasury Department says. The eight-month deficit reported by the department Monday is $21.6 billion less than it was at this time last year, a 13.4 percent improvement. Large state and local government surpluses are further lessening the weight of government borrowing on the nation's tightly squeezed credit markets. But one symptom of the pressure, coming mainly from increased business and consumer borrowing, was Monday's increase in the prime rate to 13 percent from 12.5 percent. The department's monthly statement of government receipts and outlays shows May added $33.9 billion to the deficit, a sharp turnaround from April, when tax receipts produced a rare one- month surplus of $11.5 billion.

But the $140.2 billion total through the end of May is in the range necessary to realize the Office of Management and Budget's projection of $177.7 billion in deficit spending by Sept. 30, the end of the government's fiscal year. If the projection, with which: the Congressional Budget Office generally agrees, holds true, it would be a 9 percent improvement from last year. The administration's projection for fiscal 1985 is about the same, $179 billion, but still is subject to considerable revision. Last year ended with a record deficit of $195.4 billion and by this time last year the deficit was already up to $161.8 billion.

The Commerce Department report last week on the overall economy showed the combined state, local and federal deficit was running at a $110.2 billion annual rate in the first quarter, after subtracting a $60.2 billion state and local surplus. That is the lowest point for the combined federal, state and local government deficit since the second quarter of 1982. Government receipts for May were $37,5 billion and were, for the first eight months of the fiscal year, $421.9 billion. Government spent $71.4 billion in May and for the fiscal year so far, $562.1 billion. Investors Guide By William Doyle Economy At A Glance Canadian Dollar Hits New Low TORONTO The Canadian dollar was dragged to a record low of 76.21 cents Monday as the American dollar surged on money markets and interest rates increased in the United States.

The dollar has lost two-thirds of a cent in a week and has plunged more than four cents so far this year. Its previous record low of 76.46 cents was set last Friday. Lawyer: Firm Endangered Workers CHARLESTON, W.Va. Monsanto Co. did nothing for nearly 20 years to alleviate health risks for workers exposed to toxic chemicals because ensuring their safety would cost the firm too much money, a lawyer says.

Lawyer W. Stuart Calwell Jr. made his opening argument Monday before U.S. District Judge John Copenhaver, who chose seven of the lawsuits brought against Monsanto by 170 former employees at its Nitro, W.Va., plant to test the legal and factual issues of the case. Gasoline Prices Reversing Trend LOS ANGELES Although gasoline prices usually rise during the summertime peak driving months, oil expert Dan Lundberg says pump prices have dropped nationwide in still another industry break with tradition.

Lundberg said the latest figures in his bi-weekly Lundberg Survey of service stations in all 50 states showed a reversal in historical trends. Shell Confirms Alaska Oil Find HOUSTON Shell Western a Shell Oil Company subsidiary, announced Monday it had confirmed a find in the range of 300 million barrels in the Beaufort Sea the first discovery of oil in the Alaskan Outer Continental Shelf. "It is the first discovery in the Alaskan outer continental shelf and it is going to be commercial," spokesman Mel Boeger said. United Press International Car Sales Up 12.4% In Mid June DETROIT (UPI) Rebounding from an early month decline, the six U.S. automakers had a 12.4 percent increase in sales in mid-June and the best daily selling rate in five years.

General Motors Ford Motor Chrysler American Motors Volkswagen of America and American Honda said Monday they sold 259,844 cars this year vs. 205,444 in 1983. There were nine selling days in the June 11-20 period this year compared to eight last year, Stocks Drift Lower; Prime Hike Scored which accounts for the disparity in some figures. The annual rate for the 10-day period was 8.5 million, up from a 7.3 million rate in the period last year. The 28,871 cars sold per day was the highest daily rate for the period since 1979.

So far this month, the companies have sold 446,606 autos, up 7.4 percent from 415,632 last June. Sales for the year of 3,965,579 are up 27.7 percent from 3,082,513 to date in 1983. NEW YORK (UPI) The stock market drifted lower Monday in sluggish trading after the nation's banks raised their base lending rate and drew criticism from the White House. Brokers said prices could rise today since there was no panic selloff on the news of higher interest rates Monday. The Dow Jones industrial average, which gained 3.86 Friday, slipped 0.55 to 1,130.52 Friday.

The Dow gained 44.17 points overall last week, the best advance since it surged 44.60 in the week ended March 16. The Dow transportation average rose 1.03 to 476.13 and the Dow utilities average added 0.44 to 124.81. Brokers said many investors will be watching closely as the Treasury begins its sale of $15.5 billion worth of bonds and notes during the day as part of its "mini- refunding" program to raise cash and retire debt. DOW JONES AVERAGE- .30 INDUSTRIALS JH068 Low Ctile 113C52 Down 055 IIIIBIMIBIIIII IIIIBIIIIBIIII IIIIIIIIIBIIII Proprietary Design-Carolyn Duncan (c)1983 Totally New 1st to Logansport Every Wednesday COLONEL'S DAY! 3 pieces of Colonel's Original or Extra Your choice of 2 side items 1 fresh baked buttermilk biscuit, potatoes gravy, cole slaw, baked beans, potatoes salad, Wedge, cream-o-chicken FREE refills at our self serve drink fillMlAMC Cut FRESH, COOK FRESH TM CHICKEN Duncan Inc. Kentucky Fried Chicken The nation's major banks Monday raised their prime lending rate a half point to 13 percent the fourth increase this year following a steady rise in federal funds rates the past week.

President Reagan said there was "no excuse for interest rates being at the level they are right now other than fear of the future." Treasury Bills Mixed WASHINGTON (UPI) Treasury bills were mixed on downside in the latest auction Monday, with three-month bills lower and six-month bills unchanged. The government sold $5.2 billion of three- month bills at a discount of 9.77 percent, down from last week's 10.01 percent. It was the lowest since April 30 and produced an investment rate of 10.16 percent. The government also sold the same amount of six-month bills at an average discount of 10.49 percent, unchanged from last week, which was the lowest since May 21. The investment rate for six-month bills was 11.23 percent.

Early Withdrawal Penalty To Stay Q. For several years now, we have been in an era of banking deregulation. Will there ever be a time when there will be no penalty for cashing a savings certificate early? If so, when? A. Probably, never. It's more than unlikely that your bank or savings and loan association ever will allow you to cash a savings certificate before maturity, without slapping on a penalty.

Federal regulators have lowered the early withdrawal penalties banks and must levy. For certificates issued since Oct. 1, 1983, the minimum penalties are the loss of one month's interest on certificates with maturities of from 32 days to one year and the loss of three months' interest on certificates with maturities of more than one year. For certificates issued, renewed or extended before last Oct. 1, the minimum penalties are larger.

However, there is no rule preventing banks and from charging penalties greater than the minimum set by federal regulators, as long as the penalties are spelled out when the certificates are issued, renewed or extended. The Monetary Control Act of 1S80 set April 1, 1986, as the date by which interest rates on federally insured banks and deposits, including savings certificates, must be deregulated. Federal regulators have speeded up the process so that only savings accounts, at 5.5 percent, and NOW checking accounts, at 5.25 percent, currently have interest rate caps. Eventually, the federally mandated minimum early withdrawal penalties on savings certificates will disappear. Then, each bank and will set its own penalty.

Doyle is a syndicated columnist with King Features, New York. He welcomes written questions, but can provide answers only through the column. Serving Logansport Surrounding areas for 22 years Leo insists on doing all his cooking outside these days, and he is in culinary heaven. Why? Because Leo discovered his new gas grill is the most efficient way to cook outdoors. He also found that it can help lower his summer air conditioning costs.

Now when it comes time to do the cooking, it's nothing but the great outdoors for old Leo. See your neighbors at the Gas Company or local gas appliance dealer for all the money saving advantages of outdoor gas grill cooking. the 3424 US 24 East Drive Thru Available 7538170 Ncxthen ff Public Jet VH company Ncxthern Indiona te Compontj.