The Cincinnati Enquirer from Cincinnati, Ohio • Page 37

THE CINCINNATI ENQUIRERTuesday, January 5, 1982 D- 1 1 Air Fares Go Up, Down Selectively 'New Mail Service Utilizes Computer "What we really need Is a nice, big snowstorm," said TWA's Venz. Nothing convinces a person better to consider a Florida vacation "than stepping off a curb and having slush slide into his shoe," he said. TWA, along with the $89 fare from Newark, planned to offer a traveling family free use of a rental car for four days. Air Florida, an upstart in the East Coast market, announced It would offer fliers free Sperry Hutchinson Green Stamps for ticket purchaseson flights within Florida. NEW YORK (AP)-Many of the nation's airlines plan fare Increases on some less-competitive routes, even as they simultaneously resort to offering discount fares on other routes, free rental cars and even Green Stamps to lure Northerners to sunny Florida.

"Fares have gone up and down like a yo-yo," said David Venz, director of public affairs for Trans World Airlines, which said Monday it will cut transcontinental fares effective Jan. 22. Most airlines planned average $10 one-way fare Increases this week, but generally only on selected routes, and the fierce competition on New York-to-Florlda runs showed no sign of abating, with fares reaching as low as $89 one-way between Newark, N.J., and Florida. The major airlines hope the $10 Increases, which take effect this week, will produce additional revenue without discouraging travel. The Florida price-war reflects a low level of reservations at what is usually a peak period of travel from the snowy North to the balmy South.

1 HMMHMMMMMMMMMMMMl ilaMN T-Bill Rates Fall; Certificate Rate 12.532 BY GREGG FIELDS Business Reporter Mail moves the country, and now computers move the mall. Part of it, anyway. The program, designed to speed up the movement of mail, is called E-COM, for electronic computer-originated mall. It was Inaugurated in Cincinnati and 25 other post offices around the country Monday. It works like this: A business sends an electronic version of a letter into a central computer at the post office.

This can be done, using facsimile transmitters, through use of phone lines. Then, a telecommunications Carrier-Western Union, for Instance-transmits the message to receiving post office in another part of the country. The receiving post office's computer equipment prints the message out and puts it Into first-class mail for delivery. THE SYSTEM'S biggest advantage is speed, something the Postal Service is notorious for lacking. The service guarantees that any business letter will be received within two days of being sent.

"For the Postal Service, E-COM is a chance to show that we can manage a new technology, introduce a fundamentally new product, develop new working relationships with the private sector and accept competition where it Is appropriate to the best Interests of the public," said Charles Caton, Cincinnati postmaster. Maybe. But the U.S. Justice Department disagrees. It sees the new service as an unlawful entry Into the telecommunications business.

It has also filed suit to get the service stopped. Without commenting directly on that litigation, Caton nonetheless gave his view. "One thing I want to emphasize is that this doesn't mean the Postal Service is getting into the telecommunications business," he said. Rather, the service Is merely utilizing available equipment, much like it uses airlines for delivering conventional mall. NONE OF this is free, of-course.

Companies that use the program must pay an annual service fee of $50. Messages must be kept to two typed pages. The cost is 26 cents for the first page, five cents for the second. And you can't send a letter to Grandma this way. The minimum order that can be sent to one post office is 200 letters, although the texts may vary.

WASHINGTON (AP)-Ylelds on short-term Treasury securities fell In Monday's auction, breaking the upward trend of the previous four weeks, officials said. About $4.9 billion in six-month bills were sold at an average discount rate of 12.282, down from the 12.448 of one week earlier. The government also sold about $4.9 billion in three -month bills at an average rate of 11.658, off the 11.69 of last week. ings and loans may pay as much as 14 and commercial banks as much as 13.75 Interest on -year "small saver" certificates, up from the ceilings of 13.45 and 13.2 for the previous two weeks. Interest limits on the 2V4 -year certificates are linked to yields on medium-term Treasury securities during the five days ended Monday.

The discount rate on the short-term Treasury bills auctioned Monday understates the actual return because part of the price Is refunded at the time of purchase. The actual return, or investment rate, came to an average of 13.28 on six-month bills and 12.18 on three-month bills. tapering off through much of the fall. They-started picking up again early last month. Beginning Tuesday, banks and savings and loans may pay as much as 12.532 interest on six-month money market certificates, down from the previous 12.698.

Interest on the deposits is limited to one-quarter point above the higher of two figures: Monday's yield on six-month T-bllls or the average yield on such bills at the four most recent auctions. In this case, the Monday figure was higher than the four-week average of 12.040. Also beginning Tuesday, sav Enquirer photo BY DICK SWAIM CHARLES CATON, Cincinnati postmaster, explains new electronic mail facility In the Cincinnati Post Office Annex, Liberty and Dalton Sts. "That makes E-COM ideal for monthly statements, past due no-tlces, special bulletins, letters, advertising messages and other kinds of computer-originated mall," Caton said. Also, the cost doesn't include the transmission fee that may be charged by the telecommunications firm, such as Western Union.

The yields were the lowest" since the Dec. 21 levels of 11.838 for six-month bills and 11.037 for three-month bills. Rates reached a high of nearly 16 at the end of August before Money Supply Continues Recent Rise ply, and in November set an annual rate of 7 as the growth target for M1B during the fourth quarter of 1981. The surge in the money supply In the past two months has raised fears that the Fed will be discouraged from making credit more readily available, and that It may adopt a more restrictive stance, something that would add pressure to rising interest rates. Friday's figures "certainly argue for the Fed to hold back from further easing," said Donald Maude, chief financial economist at the investment firm of Merrill Lynch, Pierce, Fenner Smith Inc.

"Over the near term, Interest rates could move up a little further." NEW YORK (AP)-The nation's basic money supply has resumed Its recent sharp growth, the Federal Reserve Board reported Monday, dampening hopes for a speedy decline In Jnterest rates. The Fed said a measure of funds readily available for spending, known as M1B, rose $1.4 billion in the week ended Dec. 23 to a seasonally adjusted $442 billion. M1B includes cash In circulation plus deposits In checklng-Jype accounts In financial institutions. For the latest four weeks, M1B averaged $441.5 billion, an 8.4 seasonally adjusted annual rate of gain from 13 weeks ago.

The Fed is attempting to fight inflation by trying to control the growth of the money sup- TV Service Being Sold Cincinnati's ON TV will be sold Feb. 1 to United Cable Television Corp. Buford Television current owner of the subscription television service (STV), made the announcement Monday. The two companies signed a letter of intent Monday which will allow United to purchase up to 80 of Home Entertainment a broadcasting subsidiary of Buford which operates STV services In Dayton, Ohio, and Chicago, as well as Cincinnati. Purchase price was said to be $20 million.

WBTI-TV, Channel 64 In Cincinnati, Is also part of the Home Entertainment Network. That station will also be Included In the deal, if and when the transfer of its license to United is approved by the Federal Communications Commission. FOR LEASE 6000 sq. ft. Free standing building.

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