Tucson Daily Citizen from Tucson, Arizona on March 11, 1966 · Page 27
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Tucson Daily Citizen from Tucson, Arizona · Page 27

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Tucson, Arizona
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Friday, March 11, 1966
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Page 27
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FRIDAY, MARCH II, 1966 T U C S O N D A I L Y C I T I Z E N PAGE 2? Higher Borrowing Rates Expected Soon In State ByTEDTURPIN Citizen Business Writer Getting a loan from the baak is going to be costlier, as the result of minimum bank lending rates being raised yesterday by major New York banks. That's the consensus of most Tucson and Phoenix bankers today, who agree that "it's just a matter of .time" before higher rates the banks must pay for money result in higher interest rates to borrowers. In Phoenix, officials of the Valley National Bank, The Arizona Bank, and the First National Bank.of Arizona agreed there will be changes soon on business loans in Arizona. Valley Bank Chairman Carl Bimson said changes will come quickly in those loans tied to New York banks. First National Board Chairman Sherman Hazeltine said, "Interest rates are a reflection of the economic condition and it is the decision of this bank to increase to 5 l / 2 per cent the rate charged a borrower who merits the best rate." In Tucson, Southern Arizona Bank Chairman John Kenney said the interest rate increase had been predicted by several economists as a step to combat an "overheated" economy. He agreed that Southern Arizona's economy--unlike the national picture -- is far from overheated. But he said the higher prime rate shouldn't have a dampening effect on the area's economy "because we haven't lad the tremendous pressure for loans that they've had in the East." Ashley Purse, president of jie Bank of Tucson, said that although Southern Arizona banking tends to be more closely oriented to the West Coast than jo the New York money mar- set, eventually the action there "cant help but push up interest rates locally." 'We can't continue to pay the rates we're continually forced-by competition -- to pay, and not pass it on to our borrowers," he said. Harvey Hinkle, chairman of the Union Bank's executive committee, said his bank "doesn't have too many loans tied to the prime rate, so it shouldn't have much effect on us." Other banks, however, may tiave a more direct relationship to the New. York market, he acknowledged. Arizona bankers said few Arizona loans are currently at the minimum or "prime" rate, so there may be no immediate change for many borrowers. New Orleans Teacher Unit Is On Strike NEW ORLEANS-UPI--Members of the American Federation of Teachers went on strike today against the public school system and set up picket lines. Schools continued operating. The union had predicted as many as 1,400 of the Orleans parish (county) teaching force of 4,000 would walk out in the first strike of its kind in Louisiana's history. But a majority of teachers ignored the strike call. The union has a large Negro membership. Only 12 of the 60 teachers at George Washington Carver High School, the city's biggest Negro high school, failed to report for classes this morning. The school principal, Milton 'Becnel, said the 12 who did not report called to say they were sick. The absenteeism was "normal," he said. Prime Loan Rate Hiked By Many Major Banks NEW YORK-tfl-Many major banks across the nation are raising the minimum interest rate on short term business loans from 5 to $ l / 2 per cent, an Associated Press survey shows. It is the second rise in the prime interest rate in three months. Last Dec. 6 the rate increased from 4% to 5 per cent. Morgan Guaranty Trust Co. of New York was the first to increase its rate yesterday afternoon. Word quickly spread through financial circles and within hours banks in widely scattered parts of the country a nounced similar increases. "Because of the continuing heavy demand for credit, we are raising our minimum rate to 5 l / 2 per cent, effective immediately," said D. C. Sutherland of the Bank of America in San Francisco. The bank is the world's largest. Although the interest rate boost is for business firms, its effect will be felt widely. It will mean a higher cost of doing business, which will be passed on to the customer. Ultimately it could mean higher rates on consumer loans for such things as automobiles and appliances. Harvill Named To Advisory Post Dr. Richard Harvill, University of Arizona president, has been selected as a member of the U.S. Bureau of Land Management advisory board on education and research. Named as an alternate member to the advisory board was Dr. Dan Stanislawski, head of the UA Geography Department. Andre Faure, city planning director, was appointed as an alternate to the advisory board on city government. Tucson attorney Willis R. Dees will serve as an alternate on the mining advisory board. Other cities where banks have nnounced the rate increase inlude: Atlanta, Indianapolis, linneapolis, Milwaukee, Richmond and Norfolk, Va., and Los Angeles. In Washington, there was no omment on the prime-rate in- rease from the White House, he Treasury Department or the ^ederal Reserve Board. The ohnson administration sharply ttacked the increase last De:ember. Some observers believe that White House silence this time ould mean that Johnson is eady to accept the rate in- rease as a means of slowing town the booming American :conomy. PINE 8 FT. EACH ECONOMY GRADE ROOF COATING ALUMINUM 14 FOUR SEASONS 1 40 PER 5 GALLON CORRUGATED IRON ROOFING 10% e %. LENGTHS 8'40'-12» ENTRY LOCK WESLOCK 8 1 9 9 EACH BRASS or BRONZE "Service With Courfesy" I LUMBER *C DISTRIBUTORS, INC. 970 S. CHERRY PH. 624-4457 FLUSH DOORS ROT. MAHOGANY 2'6"x6'8" EACH GOOD QUALITY 6' STEP LADDER ALUMINUM $095 O EACH SAFETY TREAD STEPS Open Monday Through SATURDAY 7:30 A.M. - 5:00 P.M. Also Shop Lumber Distributors in Sierra Vista Would you believe this small but ritzy firm is. offering free labor on $ 1.98 drapes? ·vo :.·*.· · · ; . TM* Drapery Facts at Empire House We are Tucson's largest drapery and carpet studio for contract work in apartments and office buildings. Because we buy in huge quantities for this contract work, we have unusually low prices and a tremendously broad selection of piece goods on inventory. To name a few: linens cottons, sheer prints, linen prints, antique satins from 1.98, Pure silks from 5.95. In Antique Satins alone we have 15 styles in 26 colors each... a choice of 390 different Antique Satins. As for workmanship and service, we feel we're tops... every seam is over-locked, custom drapes are individually fan folded, French pleats are stitched in to stay, and weights are wrapped so as not to cut the fabrics. Our two interior decorators will be plaased to make a free home estimate. And remember, free labor this month only. Would you believe prices are 1.98 to 5.95? Would you believe Empire House has Tucson's largest drapery fabric selection? You better believe it. it's something to furnish your home, visit AAA 5 7 5 0 E A S T B R O A D W A Y - / 2 9 6 - 6 1 6 6 (Jtwf o fhrow-rug fhrow wejf of SeorcJ CHEERS AT MESA ASU Demonstrators Boo Selma Sheriff TEMPE --W--Boos and catcalls greeted Sheriff Jim Clark of Selma, Ala., on the campus of Arizona State University. But Clark said he's not sorry for quelling civil rights disturbances last year. "We made many mistakes," said Clark, speaking yesterday before a Phoenix Press Club Forum, "but if I had to do it again I'd do it much the same way." Clark made three appearances in the Phoenix area as part of a Kklay speaking tour. In Mesa, more than 900 heard Clark, and he was given a stand- ing ovation. He will speak at the Santa Rita Hotel in Tucson at 8 p.m. today. "Integration might work in a city like Phoenix but not in areas that don't want it," he said. "Segregation is a way of life in the South, but you need to live there for years to see the situation." Clark arrived in Tempe among chants of "Jim Clark Must Go" from about 50 student and faculty demonstrators. The sign-carrying demonstrators, predominantly white, also sang "We Shall Overcome" and "Black and White Together." UA To Host State School Speakers The University of Arizona, The UA Department of Speech will hold its annual state championship tournament in debate, oratory and extemporaneous speaking tomorrow for 150 students from 19 state high schools. ana uie Arizona speecfl and Drama Association sponsor the event. Dr. Alethea Mattingly, UA professor of speech, is president of the association. Thirty debate teams will begin competition at 8:40 a.m. $Ti»" NDWQH jDDNTMISSITi Murray+Bryant 415 N. SIXTH AVL / 792-3950 Se Habla Espanol A Salute to Arizona's Copper Mining Industry the first Bisbee smelter--1890 Banking Minin Southern Arizona Bank has long been closely associated with the development and history of the Copper Industry in Arizona. Lewis W. Douglas, Honorary Chairman of the Board of Directors, is the third generation of the Douglas family to have a first-hand knowledge of, and and intimate concern for, the copper mining industry. His grandfather, Dr. James Douglas, founded Phelps Dodge as a copper-mining corporation, and his father, James S. Douglas, discovered the United Verde Exploration. The three generations extend back far beyond Statehood. The Douglas mansion in Jerome is now the nucleus of the Jerome Historic State Park dedicated as a memorial to his ancestors and as a symbol of the role which the mining industry has played and will continue to play in the development of Arizona. We heartily salute Arizona's Copper Mining Industry, this week and every week, and it is our purpose to serve it both here and abroad. the bank that knows mining M E M B E R F E D E R A L R E S E R V E B O A R D / M E M B E R F E D E R A L . D E P O S I T I N S U R A N C E C O R P O R A T I O N ,

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