Daily Press from Newport News, Virginia • Page 19

B7 Daily Press, Newport News, Virginia, Sunday, July 6, 1980 End Of Credit Controls Praised the recession, and particularly affected fV t. '5? i t7 vv I s9 --QqpgqHB it iff -I Hi Honored Cosmonaut This monument honrs the first Soviet cosmonaut, Yuri Gagarin. Unveiled in Moscow on Friday, it was created by Soviet sculptor F. Bon- NEW YORK (AP) The nation's bankers and shopkeepers as well as private economists are welcoming the end of federal credit controls and predicting it will spur shoppers to step up their buying pace somewhat. The Federal Reserve Board said Thursday it will phase out over the next month all emergency credit controls imposed in March when it sought to cool inflation by curbing the growth of consumer and business debt.

"This should send a signal to consumers that it's all right to resume their normal buying habits," said Duncan Muir of J.C. Penney a New York-based retailer which depends heavily on credit sales. But retailers and some economists warned recession fears among shoppers will prevent a dramatic improvement in consumer spending. "These things are difficult to predict because the consumer's attitude toward credit card purchases is almost AnH HiHn't even the slumping housing and auto industries, which depend heavily on credit, Although the Federal Reserve Board specifically attempted to exclude these two industries from the controls, banks were forced to ration credit, which indirectly hurt autos and housing. Eckstein said.

People seeking auto loans and home mortgages had to compete with small businessmen, farmers, and even large companies also seeking credit. At the same time, interest rates were pushed up by the constricted credit, and this barred many people from buying cars or houses, he noted. Eckstein said sales should pick up gradually over several months, but he does not expect a big bubble of demand. "This won't occur until a tax cut is enacted," he said. Many retailers said they expect at least slight improvement in their lag we gave him Hews hM to iiufllftv Freighter Leaves With No Refugees ging credit sales volume as consumers start to use their credit cards more.

"This should lift the tone of business," Muir said. "In terms of operational effects, it will not have any impact because the de-mand for loans just has not been that strong," said Thomas Thomson, chief economist at Crocker National Bank in San Francisco, the nation's 12th largest. "This will have absolutely no effect on the availability of consumer credit." said William Melton, vice president and economist at Irving Trust Co. of New York, the nation's 14th-largest commercial bank. But other bankers said that lifting the controls will free some bank reserves that are being held in special Fed accounts, thus reducing banks' cost of funds and possibly leading to further reductions in the prime lending In response, a spokesman for New York's Citibank said it will phase out its own controls.

Vtirh JcpwiliifflO V.HI (MV ini 5:50 initial ualitving FRbb aft JiM.Mini pureniur $2W $1,000 $5,000 UVtf iK Hk ll, muir ANY TWO FREE FREE 3.1. FREE 1 1 5.95' i 5 95 $12.95 3.95 FREE FREE FREE $1095 7,95 $10.95 m.95 5.95 $15.95 $39 95 $49r95 $2995 $43.05 entirely psychological." said Bob Shoup of Sears. Roebuck and the nation's largest retailer. Sears' credit sales fell sharply after the Federal Reserve announced its March credit-tightening program. Nationwide, retail sales from February through May have plunged 7.3 percent, the Commerce Department reports.

That is more than double the 3. 1 percent decline in the last four-month fall from September through December 1974 during the last recession. Consumer installment debt, meanwhile, fell by nearly $2 million in April alone the month after credit controls were imposed. It was the first time Americans paid off more than they borrowed since May 1975. Otto Eckstein, head of Data Resources a Lexington, economic forecasting firm, called the credit restraints a mistake from the beginning, contending that they worsened call the oolice.

You see, beauty and value ot tine paying a fortune tor it. that an investment 1 1 r' ate 1 jtt r-m mi x- rm KEY WEST. Fla. (AP) A freighter that U.S. officials had said might bring several thousand more refugees to Florida left Cuba with no refugees aboard and was headed to a Caribbean island, a Coast Guard spokesman said Saturday.

Mike Ayres, a spokesman for the Coast Guard's district headquarters in Miami, said the freighter Blue Fire left the port of Mariel on Friday. It was tailed by the Coast Guard cutter Diligence. "According to her master, the Blue Fire is en route to Grand Cayman Island without refugees," said Ayres. "In a radio report between the Diligence and the Blue Fire, the master said he had only his crew of seven aboard." Sources, two with the Coast Guard in Washington and in Florida and one with the U.S. State Department in Washington, had reported the, departure earlier in the day.

The sources said the freighter, in Mariel for several days, headed for the Cayman Islands south of Cuba. 1 Killed In Pakistan Rioting darenko and architects J. Be-lopolski and F. Gajenski. It is made of titanium and stands on a column 38 meters high.

(UPI) Arriving refugees had told U.S. Immigration officials the freighter would bring 2,000 to 5,000 refugees to the United States on Friday, Coast Guard spokesmen said. The single largest boatload during the "Freedom Flotilla" from Cuba carried just under 800 refugees. About 115,000 refugees have left Cuba for the United States aboard the illegal boatlift since mid-April. Some of the 216 refugees who arrived Thursday aboard a 65-foot shimp boat predicted the large freighter would leave Mariel on Saturday.

The Coast Guard had been trying to determine the ownership of the freighter. A refugee who arrived Thure day was overheard by a Coast Guardsman as he told another refugee that he owned the Blue Fire. The man, identified as Augustin Garcia, 47, of Sunnyvale, was re ported to have told another refugee he was returning to the United States to see what would happen to his craft, Arimzendi said. unleashed their followers to demon strate in the streets to force govern ment leaders to repeal the tax, called "zakat." Hundreds of thousands of Shiites massed in the Pakistani capital during the weekened to show mass opposition to the 2.5 percent tax on the savings of all Moslems. 1 The tax was imposed in May by mili tary President Gen.

Mohammad Zia ul- Haq, who Saturday celebrated the third anniversary of the coup that deposed his predecessor, Zulfikar AH Bhutto who was hanged in April 1979. Zia. like most government officials, is a Sunni Moslem. The Shiites make up about one-third of Moslem Pakistan's 80 million population. The rest are Sunnis The hospital, which had been the object of court action between the Georgia Warm SDrines Foundation and the state, was re-dedicated by Gov.

George Busbee as the Roosevelt-Warm Springs Rehabilitation Center. Busbee named Ellis Moran, director of the Woodrow Wilson Institute in Vir ginia, to head the facility, effective Aug. 1. vThe Georgia Warms Springs Foundation headed by the former president's son, James Roosevelt sued the state after the Board of Human Resources voted to close the hospital. The foundation had donated the fa cility in 1974 under the condition it be used as a hospital for at least 10 years.

ASK YOUR DOCTOR WHEN HEARING JUG WrKL MtLP 722-3989 LYNN LEDFORD BELTONE 3116 VICTORIA BLVD. HPT. ISLAMABAD, Pakistan (UPI) A demonstrator was killed Saturday and 13 other people, including five policemen, injured in clashes between police and Shiite Moslems demanding peal of a tax they say violates their religious beliefs, officials said. About 200,000 angry Shiite Moslems, armed with iron rods and bam-' boos sticks and chanting anti-government slogans, marched through Islamabad in defiance of martial law, to back their demands. Police fired tear gas and then live ammunition at the marchers when they attacked, killing one and injuring eight others, officials said.

A hospital spokesman said four of the five policemen injured were in serious condition. Leaders of the Shiite Moslem sect fciT Inurnauxnal Silvrt Rehabilitation Center Opened 1. Goblets 2. Chamberstick the silver. Free or at greatly reduced prices.

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4 pc. Coffee Set Eipht Gohlets WARM SPRINGS, Ga. (AP) The historic Warm Springs hospital, where former President Franklin D. Roosevelt was treated, has been officially reopened as a rehabilitation center for the handicapped. And during the late-afternoon ceremony Friday, Chris T.

Delaporte, director of the U.S. Heritage Conservation" and Recreation Service, officially designated the Warm Springs complex as a national historic landmark. The designation includes the hospital and its hot springs and pools, where the former president sought relief from his crippling polio. Also included is the nearby Little White House, where Roosevelt died on April 12, 1945. Other line c.JltciiHe pitas jvaiiablt.

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All sales plus funds nut eligible. can enjoy the without Nnw A I nL if -a Federal Savings a mix nh. Bronx Mob Attacks Train N.Y. Times News Service NEW YORK A Westchester-bound Conrail train carrying Fourth of July celebrants home from New York City was stalled for nearly 90 minutes in the Bronx by an electrical fire Friday night and attacked by a large crowd that hurled rocks, bottles, firecrackers and obscenities. The crowd of neighborhood people did not board the train, and no one was injured or arrested in the incident, which began about 10:30 p.m.

when the blaze erupted under the first of eight cars that halted on Conrail's Harlem Division tracks..