The Cincinnati Enquirer from Cincinnati, Ohio • Page 23

C-4 THE CINCINNATI ENQUIRERWednesday, April 1,1981 1 arkets: 'Back To The Basics' Chamber Executive Sets Sights Gaines Seeks Capital For Jobs, Growth it bl President pushed stock and bond prices lower and sent the dollar reeling. Prices for gold, which often is sought as an investment haven during times of international crisis, surged upward. Stock exchanges across the country and in Canada closed early. First word of the incident came Just after the 2:30 p.m. EST close of major commodity markets on Monday.

The Dow Jones average had been up more than 6 points in quiet trading Monday just before the shooting. It closed at 992.16, down 2.62 at the 3:17 p.m. close. Trading normally ends at 4 p.m. EST.

But with Mr. Reagan resuming the duties of the presidency from his hospital bed Tuesday, the markets reopened at the normal 10 a.m. EST time. "The market is happy about Reagan's good health," said Daniel J. Murphy at Oppen-heimer Co.

"The death of any President would be catastrophic. But it would have been especially so in Reagan's case, since he has become a symbol of fiscal responsibility." MONDAY'S EARLY stock market closings marked the first time stock trading was halted for other than weather or equipment problems since Jan. 25, 1973, when Wall Street remained closed for the funeral of former President Lyndon Johnson. On Nov. 22, 1963, trading was halted with stock prices falling rharply when President John Kennedy was sassinated in Dallas.

Normalcy Returns Day After Shooting NEW YORK (AP)-Stock prices rallied strongly Tuesday as U.S. financial markets resumed normal trading after the assassination attempt against President Reagan. Gold fell sharply in markets around the world after doctors reported that Mr. Reagan was doing well. The dollar rebounded, but then lost ground In European markets because of a decline in U.S.

interest rates before rising sharply in late New York trading. WITH DOCTORS saying the President was in "exceptionally good condition," analysts said traders had returned their attention to purely financial aspects of the markets. The stock market, which had closed about 45 minutes early Monday after word reached the trading floor that Mr. Reagan had been wounded, reopened at its usual hour and prices immediately surged upward. The Dow Jones average of 30 industrial stocks quickly climbed above the 1,000 level and stabilized.

At the close, the Dow was up 11.71 points, to 1003.87. "You'd have to say we're back to normal," said David Jones, a financial economist at the Wall Street investment firm of Aubrey G. Lan-ston The bond market also rallied as interest rates dropped. Maury Harris, an economist at the investment house of Paine, Webber, Jackson Curtis said that with Mr. Reagan apparently out of danger, "it's back to the basics" in trading.

"IT'S ONE of the few times you get the bond market and the stock market dancing together," said ones. The dollar rebounded on foreign exchange markets in Europe following reports that Mr. Reagan was recovering rapidly, but later fell back as U.S. interest rates sagged. Lower interest rates reduce the dollar's appeal to investors.

In currency trading in New York, the dollar stabilized then regained the lost ground. "You'd have to say that markets internationally have taken it (the assassination attempt) in stride," said one New York currency dealer who asked that he his name not be used. Gold prices, meanwhile, fell. In London, gold dropped $11.25 to $507.50 an ounce, while the precious metal rose $1.70 to $513.80 an ounce on New York's Commodity Exchange, which closed Monday before the shooting. In later trading at Republic National Bank in New York, gold was bid at $513.50, down sharply from $524.

THE IMMEDIATE reaction in financial markets Monday to the wounding of the I -11 i -i mfrrtrr-i I BY TIM MEEHAN Business Reporter After three months as executive vice president of the Greater Cincinnati Chamber of Commerce Gene Gaines knows where he wants to go and has a handle on the best route to get there. The banker-turned-chamber-executive says he is optimistic that the chamber can accomplish its mission of stimulating reinvestment of capital to create more jobs and growuh. He cites the spirit of co-operation between the public and private sectors and the genuine concern of business to solve problems as the basis for that optimism. IN ZEROING In on ways the chamber can accomplish its mission, Gaines, who began his new career Jan. 1, sees jobs and communication as good places to start.

Gaines believes the best way to create new jobs Is through small business. He cited a sampling of eight of the last 10 recipients of the chamber's annual Small Business Person of the Year Award. In 1970, they employed a total of 404 persons. In 1980, they had 1,440 employees. "When we look at the crying need to create more jobs in this area," he said, this sector provides the greatest hope.

"Too many people feel tnat the chamber exists to support big business and downtown Cincinnati," he said. "There's no ques- Dramatic Occurences Often Signal To Buy GENE GAINES tion that our primary funding is by big corporations and that everyone benefits from our mavelous downtown," he said. But the chamber has to look at the seven to nine county area. GAINES CAME to Cincinnati from Dallas In 1971 and was associated with First National Bank of Cincinnati and Southern Ohio Bank during the '70s. His experience as a lending officer made him "very sympathetic to needs of small and medium-size companies," he said.

Big companies, he said, usually have staff to provide help with capital formation and government regulations. It is more difficult for the small businessman, who spends 60 to 70 hours a week just running his business, Gaines said. The new executive said the chamber plans to give full time staff support to help small business become a "more active, viable group. I realize we can't please them all, but if we would like them to feel they can call the chamber and they will have a friend on the other end." Close of Close 3 21 trading trading calendar day days days Event after later later Korean War (62450) 212.07 206.72 197.63 Eisenhower heart attack (92455) 465.93 468.68 446.13 Egypt seizes Suez Canal (72656) 512.30 517.81 517.19 Hungarian revolt (102356) 482.67 486.06 486.69 Sputnik I (10457) 452.42 451.40 435.15 U-2 shot down (5160) 607.73 608.32 623.66 Berlin wall erected (81261) 716.18 721.84 718.72 Cuban missile crises (102262) 558.06 570.86 624.41 John Kennedy assassinated 743.52 750.52 760.17 Dominican Republic invasion 918.71 922.11 932.12 Israel-Arab War (6567) 862.71 873.20 872.11 USS Pueblo seized (12368) 862.23 865.06 831.77 Soviets invade Czechoslovakia 888.30 896.13 919.38 Cambodian invasion (43070) 733.63 709.74 665.25 U.S. Mines N.

Vietnam harbors (5972). 931.07 941.83 971.18 BY DAN DORFMAN 1981, Chicago Tribune The word on the floor of the frenzied New York Stock Exchange Is that the Dow Jones Industrials might have tumbled as much as 25-40 points Monday had not Big Board officials stepped in and abruptly halted trading at 3:17 p.m. It was about 2:30 p.m. when the Wall Street community first learned of the presidential assassination attempt. History shows, though, that one of the worst times to unload securities is a day on which there's news of a dramatic, uncertain development.

In fact, it could have been a time for the history-conscious to buy. A CASE in point is the day (Nov. 22, 1963) President John F. Kennedy was assassinated. In an abbreviated session, the Dow tumbled more than 21 points to 711.49.

The NYSE then suspended trading for the next couple of days and when it reopened the Dow skyrocketed more than 30 points, closing at 743.52. The outbreak of the Israeli-Arab war on June 5, 1967, had another blockbuster lmqact on the market. The Dow fell more than 15 points that day to 847.77. But in the following session, the market charged ahead nearly 13 points to 862.71. And for the strong-hearted who bought, It was a windfall as the Dow soared to 951.57 some 8V4 months later.

Veteran market analyst Edson Gould, who has analyzed 15 dramatic, unsettling developments over a 22-year period (1950-1972), finds that the market-other than for a temporary reactionpays little heed in a majority of cases to the news. Most markets moving up continued to advance; others retreating continued to do so. IN THE case of the 15 events, the market, from the close on the day of the event to the close three trading sessions later, was higher Seminar To View Black Business in 12 instances. Twenty-one calendar days later, the market was up in nine cases, down in five others and was relatively unchanged in one. Two of the biggest Impacts: The outbreak of the Korean War in late June, 1950, which sent the market skidding almost 15 in the following few weeks; President Eisenhower's heart attack in September, 1955, which in the ensuing 11 -day period, battered the Dow for a stiff 11.6 decline.

Gould says it's the little guy who's generally the first to panic when uncertain about the impact of a dramatic development. And he's generally a big loser because of it. The big winners: You guessed it; the traders and the institutional biggies who buy during the widespread dumping of stocks. Accompanying the story is a chart covering the 15 major unsettling developments analyzed by Gould and the ensuing market results. Cincinnati Councilman Kenneth Blackwell will explain how black businesses will fare under the Reagan administration at a small-business seminar April 17 at the Vernon Manor.

Roland D. West is sponsoring the seminar, which will begin at 8:30 a.m. and end with a luncheon at 12:30. Also scheduled to speak are Steve Reece, president of Com-muniplex Services, Betty Terry, director of purchasing for the City of Cincinnati, business analyst Ronald Burke and attorney Greg Bachand. Cost is $5 for the seminar alone, $14 for seminar and luncheon.

Reservations should be made before Friday by contacting West at 2828 Vernon Place, Cincinnati, Ohio, 45219. United Air Service Set For Cincinnati? United received Civil Aeronautics Board permission Dec. 23 to serve Cincinnati and five other cities Indianapolis, Albuquerque, Austin, San Antonio and El Paso. United has not announced plans to begin service to any of those cities, a spokesman said. A CAB spokeswoman said United has not filed an airport notice with the board.

That notice must be filed 30 days prior to the start of service. UNITED BEGAN air freight service in Cincinnati last July, using trucks to deliver freight to United's terminal In Chicago. The company then stated it had "no plans right now" to begin passenger service here. An official at Greater Cincinnati International Airport denied any knowledge about United's plans. Robert Holscher, director of aviation, said he has been invited to the breakfast but knows nothing about the BY WAYNE BUCKHOUT Business Reporter Financial analysts expect United Air Lines President Percy Wood to announce Thursday that the nation's largest domestic airline will begin passenger air service to Greater Cincinnati.

A United Air Lines spokesman would say only that an announcement of "significant Interest" to Cincinnati will follow Wood's breakfast meeting with community and business leaders at the downtown Westin Hotel. BUT A New York financial analyst, told of Wood's plans, said "there's nothing else it could be" but an announcement of the inauguration of scheduled service. Both the Westin chain and United are subsidiaries of UAL a Chicago holding company. Wood is a UAL director but does not have direct responsibility for the hotels. "They haven't contacted us about space I think that's a little unusual," he said.

He added that the airport has sufficient space to accommodate a major carrier like United. Holscher said he has been in touch with Delta Air Lines officials about "possible modifications" to that airline's facilities at the airport. Holscher wouldn't be specific, but Delta is re-portedly planning to announce expanded air service for Cincinnati on April 15. THE ANALYSTS said United is expanding its service to western and southwestern U.S. cities from Chicago and Denver.

Cincinnati may become an eastern anchor in that western thrust, they suggested, while United leaves the southern and eastern routes to Cincinnati's three largest carriers Delta, American Airlines and Trans World Airlines. (3 3 2) A-Day A-Day Plus Mileage First National Eyes Bank Plus Mileage business pulse Rent a tandem-axle tractor for this Now rent a dependable, late-model Ryder 18-foot truck at this special low price. Offer good special limited-time-only price. Top condition, late- through April 30, model. Offer 08 nnp-wrw rentals fRYDE excluded.

good through April 30. 1981. One-way rentals excluded. ST. JOE Minerals fighting a $2.1 billion takeover bid by Seagrams said Tuesday it has reached a preliminary agreement to be merged into the Fluor Corp.

in a cash and stock transaction. Fluor would acquire 45 of St. Joe's 46 million outstanding shares of common stock for $60 a share, a transacton worth about $1.24 billion. The Second National Bank of Hamilton, Ohio, would become a sister bank of First National Bank of Cincinnati in a proposed cash transaction, First National's parent company said Tuesday. First National Cincinnati Corp.

said it has an agreement to purchase the Hamilton bank, which had assets of $110.1 million last Dec. 31. The purchase price was not disclosed. SECOND NATIONAL has seven offices, all in Butler County. There are three other independently owned banks in the county and several offices of major Cincinnati, Dayton and Columbus banks.

Second National and First National have a correspondent banking relationship, which means First National supplies Second National with certain big-bank services in exchange for deposits. The U.S. Controller of the Cur-rency office in Cleveland said Second National earned $1.65 million during 1980 and had $11.10 million in capital a year-end. Deposits totaled $93.13 million and loans, after reductions for serves, were $52.11 million. NED HITCHCOCK, president of Second National, said the bank's name, officers, staff and directors would remain the same after the acquisition.

Second National shareholders will be told of the agreement by letter. Details will be included in a proxy statement. Hitchcock said the Second National's ownership is broadly distributed, with no one owning more than a 10 stake. HVOEN I NEW ORDERS for manufactured goods fell 0.5 in February as the national economy slowed, the Commerce Department reported Tuesday. Factory orders for durable goods, such as steel, actually rose 0.1 in February.

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