Reno Gazette-Journal from Reno, Nevada • Page 12

Business- 12A Friday, July 15, 1983 Gazette-Journal Fed trying to slow growing money supply permit inflationary pressures to eet because it exacerbates fears of future inflation. Interest rates have been edging up in the past few weeks. Volcker refused to reveal precisely what the Fed's policy-making body, the Federal Open Market Committee, decided to do about monetary policy during meetings earlier this week, but he said he will provide more detail next Wednesday and Thursday in congressional testimony. Senate Banking Committee Chairman Jake Gam, R-Utah, delayed a vote on Volcker's confirmation until next Thursday. By MERYL GORDON GNS WASHINGTON Federal Reserve Board Chairman Paul Volcker said Thursday that the central bank is trying to slightly rein in the nation's rapidly growing money supply, an action that could push interest rates higher temporarily.

"Sometimes, restraining actions in the short term are just the thing to prevent much bigger rises in interest rates later," Volcker said, testifying before the Senate Banking Committee at his confirmation hearing. "If we chairman. With a presidential election in November 1984 and the new president sworn in January 1985, that would potentially open the Fed chairman's job in January 1986. Volcker said the Fed, concerned over recent large increases in the money supply, hasn't "taken a drastic or strong action in recent weeks. You could characterize policy as less accommodative to large (money) growth than it had been earlier." Large money growth is worrisome started again, clearly we'll have higher interest rates, of some size." Volcker, first appointed to the post by former President Carter in August 1979, said he may not stay another full four years as Fed chairman, and hinted that he might resign in January, 1986.

"I commit myself to staying a substantial length of time," he said. "I didn't want to absolutely promise to stay a full four years." Volcker said a president should, one year after taking office, be able to name his own Fed WW Businesses continue to rebuild inventories WASHINGTON (AP) U.S. businesses continued to rebuild their inventories in May, raising stockpiles 0.3 percent, as sales took their biggest jump in four years, government figures indicated Thursday. A separate measure of how long it would take to sell off stocks at the current sales pace fell to its lowest level in at least 15 years "providing the incentive for more hiring, more ordering and production," Commerce Undersecretary Robert Dederick said. "Thus, the business recovery continues to feed on itself in classic fashion, with nearly all signals flashing green," he said.

The Commerce report said the $1.7 billion addition to stockpiles held by manufacturers, wholesalers and retailers put the value of goods on shelves and back-lots at $506.5 billion at the end of May. Sales for the month climbed 3.3 percent, or $363.1 billion, the highest one-month gain since the 3.6 percent of May 1979. William Dunkelberg of the National Federation of Independent Business said the report suggests "an even better third quarter that things could really be rolling." Robert Cross of Chase Econometrics said the slower growth in inventories than in retail sales is an indication that demand is still outstripping prod-. uction. "Whatever they put in inventory just kept going out the door," he said.

The inventory-sale ratio, which businesses try to keep low, fell to the lowest level "in at least 15 years," the lenght of time the government has been computing it in the current way, the report said. Ford Motor Co. declares first dividend in 7 quarters DETROIT (AP) Ford Motor Co. says cost-cutting and improved sales of cars and trucks will allow it to pay a dividend for the first time in seven quarters. The No.

2 U.S. automaker, which has not paid a dividend since the first quarter of 1982, said Thursday it will pay 30 cents per share of common stock for the third quarter of this year. "Today's action has been made possible by substantial reductions in operating costs achieved over the past 3'4 years which have resulted in a much leaner, more efficient company, and by the success of the company's new products this year," said Chairman Philip Caldwell. Ford earned $211.2 million in the first quarter of this year, compared with a loss of $301.5 million in the first quarter of 1982. It was the first time the company had turned a profit since it earned $595 million in the first quarter of 1979.

Las Vegas grocery strike settled LAS VEGAS (AP) Striking grocery store workers unanimously approved a new three-year contract Thursday that ends a sometimes bitter 11-week-old strike against area grocery chain stores. The pact, which calls for a 13.8 percent wage and benefit increase over the life of the contract, was approved on a voice vote in a mass membership meeting. Union officials said some of the employees will be returning to work today, with others scheduled to return within 72 hours of the vote. Some 3,200 grocery store workers have been on strike in a dispute that began May 1 when the union struck Smith's Food King stores. Other chain stores responded by locking out their workers.

Bob Mondor, a negotiator for the Food Employers Council, said the agreement contains a total of $1.58 in wage and health insurance benefits over the three years. Journeymen clerks made a top scale of $9.57 under the expired contract. Firm's gold-mining plans advance Industrial Petroleum Inc. plans to move full steam ahead on mining 22,000 acres of placer gold claims in Pershing County after a Sixth Judicial Court Judge ruled a claim-jumping case in its favor. Judge Richard Legarza ruled Wednesday thaf.

Victor Industries of Washington state overstaked 4,000 acres of Industrial Petroleum's claims in the fall of 1980. The judge assessed $250,000 in punitive damages, $13,500 in compensatory damages and all court costs against Victor Industries, a court official confirmed. H. F. Anderson, president of Industrial Petroleum in Reno, said he has commissioned Jack McQuat and Associates, an international geology firm, to complete studies this summer on the best way to mine the placer claims, called the Barrel Springs Mine in the Rabbit Hole Mining District.

A mill Would be built next spring and equipment purchased to start the placer and gravel operation. Anderson said the mine would employ about 100 people. Its 22,000 acres is the equivalent of 30 square miles. Sparks casino plans birthday party Karl's Hotel-Casino in Sparks will celebrate a "Sweet Sixteen" birthday party today through Sunday. It will offer free champagne, 25 to 50 drinks and a top sirloin steak special of $1.16 from 10 a.m.

to 10 p.m. The birthday party marks the second celebration for Karl's this summer. Owner Karl Berge threw a street party in late May to celebrate the start of construction of a new $8 million casino renovation project centered on the Gay '90s theme. photo by mark crosse AT THE TOP: Construction workers this week reached the top of the new 1 1 -story hotel tower being built by the Sands Hotel Casino. The $8 million project, including 269 new rooms, is expected to be completed by Christmas Eve, six months ahead of schedule.

The Sands plans a "topping out" ceremony this afternoon, including refreshments for the construction workers. Valley Bank joins nationwide automatic teller network. By TIM ANDERSON Valley Bank of Nevada Thursday heralded the company's participation in the nation's first transcontinental automated teller machine network, with officials saying activation of the system represents the "dawn of a revolutionary era" in banking. "This is big news for our bank, for our community and for our state," said Bill Hull, senior vice president and head of Valley's northern division, during a gathering of business and community leaders at a special reception in the bank's Reno headquarters. Later, he and other company executives said the banking advantages made possible by Plus System, Inc.

is also big news for the entire country. The activation of the system Thursday marked the first time that ATM (automated teller machine) banking had become nationwide in scope. "Imagine, being able to get cash from a machine thousands of miles from your hometown," Hull said. "For the first time, our customers will have access to their bank accounts from almost anywhere in the United States." He said ATM cards issued by financial institutions affiliated with the Plus System can be used in any machine bearing the network's emblem. Bank President Peter Thomas.

"It couldn't have worked out better for us, especially with Bank of America as a member." Thomas said a third of the Californians who visit Nevada have of A accounts. He said Valley's ATMs will be located strategically throughout the communities served by the bank. In the Reno area, machines are located at all Valley branches in addition to the Club Cal-Neva and on campus at the University of Nevada. Work is under way to install machines at Caesars Tahoe and Washoe Medical Center. Thomas noted that there are "quite a few casinos" in southern Nevada that house the special ATMs.

Plus System officials, in news conferences in various parts of the country today, said plans call for linking ATMs at busy airports and tourist locations to the network. They also noted that there are 12 million households in the country that could immediately use the system. College campuses are expected to be one of the more important locations for the ATMs because many students are far from home. But suburban shopping malls are unlikely locations because they normally don't attract traveling businesspeople or tourists. Through a highly sophisticated computer in Denver, Plus System customers can have access to their hometown bank accounts (checking, savings or credit card) in a transaction which takes about 20 seconds.

Financial institutions that offer the system have the authority to charge whatever fees they deem reasonable, Hull said. Valley Bank customers are being charged $1 per transaction. At present, there are 2,000 ATMs in the Plus network of 34 major commercial banks (and 1,000 other financial insitutions) in 47 states. Hull said the number of locations is expected to swell to 3,000 by year's end and to 10,000 within five years. Valley, like some of the other banks that originally formed the system, is also trying to sell memberships to other financial institutions in the state.

So far, Hull said Nevada Savings and Frontier Savings have joined and First Western Savings has made a formal commitment. Nationally, banks in the system include industry giants Bank of America and Chase Manhattan Bank. "With this kind of muscle, the network is in good position to grow at a pretty rapid pace," said Valley TlffiYfi LLilLULU mm 8:00 a.m.-9:00 a.m. Save 20 three times a day on direct dialed calls! Nevada Bell now has three hours a day, Monday through Friday, when you can make long distance calls within Nevada and save 20 percent off the full day rate. From 8:00 a.m.

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