Indiana Gazette from Indiana, Pennsylvania • 16

Pope 16 Thurtdoy. May 17. 1 984 (feiuctte II 1 it I i Long-term exam ecnomic trends into of statistics brings glaring perspective for Savings Institutions, which seeks to invest pools of money in a way that offsets the mismatch. Meanwhile, another sot of numbers shows mortgage insurers are putting their own restraints on the availability of adjustable rate mortgages, or mortgages in which the interest rates rise or maybe fall with market conditions. One technique that made such mortgages available was to offer first-year rates well below market rates, thus enabling many more families to qualify for loans.

But, a survey by Advance Mortgage Corp. shows, that game may be up. The private insurers, says Advance, have in effect raised by 20 percent the income needed to qualify for adjustable mortgages. Until recently they allowed a family to use 33 percent of income for mortgages. Now they're down to 28.

At the same time, says Advance, they have have placed limits on those first-year discounts. Earlier, they would allow lenders to offer first-year discounts to borrowers of as much as 6 percent. Their new limit is 4 percent. By JOHN CUNNIFF AP Business Analyst NEW YORK (AP) In 1960, the federal deficit for the calendar year was 3 billion. By 1982 it had swollen nearly 50 times to $147 billion.

Such long-term examination of econorn- glaring perspective, revealing the numbers in bone-clean clarity freeing them from the confusion of day-to-day economic and political disputes. An overview also reveals something perhaps even more significant than the huge increase in the deficit. It is the percentage of that deficit made up by interest. It nearly doubled to 2.7 percent between 1960 and 1982. Which way has defense spending gone? Up, you say.

No, the statistics say, it has gone down, at least as a percentage of the gross national-product from 8.9 percent in I960 to ic statistics or- EMQs5iftss ten brins FHsftP trends I into veling It out to homebuyers as fast as they can. The crisis, you might therefore conclude, has been passed. Hardly. None other than the U.S. League of Savings institutions, which speaks for most of the savings and Loan associations, reveals a set of numbers that underscores the fragility of today's economy: More than 85 percent of the deposit liabilities of savings institutions still have a duration of one year or less, while 75 percent of assets are in fixed-rate mortgatges with an average remaining life of 12 to 14 years The result, it concludes, "is a massive mismatch that makes the job of managing the asset-liability mix of a institution pretty complex and unpredictable." Weren't variable rate mortgages supposed to have resolved that problem? Perhaps, but nut immediately, the reason being that so many fixed-rate mortgages already were on the books and few borrowers intend to turn them in.

About 500 lenders do have some relief, however, through the formation of an Asset Management Fund 5.8 percent In the calendar year 1932. Back in 1960 the country spent $45 billion on defense, or 8.9 percent of the $507 billion gross national product. In 1982 it spent $179 billion, but since the GNP has grown to $3.07 trillion, the percentage was just 5.8. Another significant trend is revealed by an eagle's eye view of the same years: Transfer payments as a percent of GNP nearly doubled from (27 billion or 5 3 percent to $321 billion or 10.5 percent. These figures, all of them, are from official government sources, but private sources also provide meaningful Insights into the workings of tlw economy.

In this instance, some short-term numbers tell a revealing story about housing, homebuyers and lenders. You remember, of course, how the nation's thrift institutions fell into a financial trap by borrowing short and lending long, the classic formula for putting any person or institution onto the financial toboggan slide. But now, you observe, those thrifts that survived have plenty of money to lend and are, in act, sho NEW KENSINGTON-HILLCREST-HEIGHTS' PLAZA KITTANNING RICHLAND. LOGAN VALLEY, INDIANA WASHINGTON MALLS Cerran Asling, front left, and Bryan Moreau, back right, both new members of the Indiana Area High School Chapter of the Nation' al Honor Society, are greeted prior to the formal induction ceremony by Linda Jones, faculty adviser, and Doug Gelbach, chapter president. (Gazette photo by Peel) Indiana High inducts 49 new members into Natl Honor Scoiety Replacement pads, cushions 8 accessories for porch patio "mawjmpin.uJ.TTW Extra heavy vinyl Two cushion printed glider set by Crawford, 89.99 Rag.

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i os above, Forty-nine Indiana Area High School eligible juniors and seniors were recently inducted into the school's chapter of the National Honor Society. Doug Gelbach.ipresident. acted as master of ceremonies for the installation held Thursday, May 3. and new members were introduced by Barbara Stelma, secretary. Seniors inducted were Nancy J.

Costa, Douglas H. Frank, Jennifer Harrison, Wendy L. Mahan, Carol Piontek, Robyn L. Pennington, Timothy Roberts, Lisa L. Smith and Lisa A.

Wegener. Juniors qualifying for membership in the society were Lisa A. Abel, Conan Asting, Karen L. Bal-dauf, Ellen E. Broughton, John W.

Center hopes for increased state funding KITTAXNING The financially strapped Armstrong County Health Center could receive an increase in finding if a House version of the state budget passes the Senate unchanged. County commissioner chairman Carl Culp said the Pennsylvania State Association of County Com missioners recommended a formula change to increase health center fundings to the Department of Public Welfare last week. Under the new formulas, Armstrong County's daily reimbursement for skilled care would increase from $49.53 to $55.10 and its intermediate-care reimbursement from $37.04 to $43.24. Culp said $400 million remains unfunded in the House budget version, but added no one knows what the Senate will cut. The House has currently budgeted $616 million for long-term care.

The commissioner chairman said the increase, if passed, would be a real help to the health center. The facility now operates under a $700,000 deficit. With the increase, the health center would be under ceiling for skilled care and almost at ceiling for intermediate care. The reimbursement is currently less than the amount spent for skilled and inter mediate care. Delaney, Elizabeth W.

Dietz, Colleen Druzgal, Karen A. Fruehs-torfcr, Mary Kay Gatti, Amy L. George. Ahane E. Hartman, Debra L.

Henry. Christine Hickey, Mimi Hoffman, Theresa Holland, Gregory Jablunovsky, Toni Kelly, Sherri Lewis, Edward E. Mackev, Robert R. McSorley. Bryan J.

Moreau. Nathan I. Nas-lase, Maureen O'Malley, Nathalie Op de Bccck, Amy Radell, Andrea Receski. Jeffrey Rinkus, D. Randall Risinger, Kimberly A.

Schneider, Kristin L. Schneider. Holly A. Smith, Melissa A. Stefanik, Diane E.

Steiner, Lisa L. Steinkamp, Lisa D. Stets, Sylvana L. Tea. Lori A.

Tost, Valerie A. Walker, Jill E. Wise and David Zam-uotti. Student speakers at the formal induction ceremony were Paul Tripo-di, Glenda Risinger, Joanna Nania, Eric Park and Gretchen Hartman. Musical entertainment was provided by Carla Panaia and Susan Pino, pianist, played the recessional.

New members and their guests were greeted at a reception following the induction. Hosting the reception were chapter adviser, Linda Jones, and present officers, Gel-bach; Nania, vice president; Stelma; Elizabeth Ferguson, treasurer; and Glen Martel and Eric Park, ushers; and members. Senator arrested after crash HARWSBURG AP) State Sen. Guy M. Kratzer was charged with drunken driving after his car crashed into a light pole behind the Capitol, city police said.

A police officer arrested Kratzer, R-Lehigh, at 2:15 a.m. Tuesday after administering a sobriety test at the scene of the accident, said Capt. Donald Maxwell. Kratzer was "aware" that he'd been in an accident but was "in a state of confusion and only wanted to go home," the official police report said. The senator "had a strong odor of alcohol on his breath and spoke with a slurred speech and thick tongue," the report said.

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