Garden City Telegram from Garden City, Kansas • Page 17

Sen. Schweiker Says He and Reagan Are Com Editor's Note: Many questions have been raised about Ronald Reagan's coalition with liberal Sen. Richard Schweiker in his race for the Republican nomination for president. But what about Schweiker's side of the coalition? In an interview on the Reagan campaign trail, Schweiker describes his view of the coalition. By DOUG WILLIS Associated Press Writer CHARLESTON, W.Va.

(AP) Sen. Richard Sch- weiker says his philosophy is compatible with that of Ronald Reagan. He isn't becoming more conservative, says Schweiker, just more critical of the effectiveness of the federal bureaucracy. The liberal Pennsylvania senator said he sees no inconsistency or compromise of principles in joining a potential presidential ticket headed by Reagan, one of the nation's leading spokesmen of conservative anti-Washington ideology. In a campaign trail interview this past weekend, Schweiker said his view on economic issues would change "because I feel that instead of representing one state, I'd have to represent 50 states." And his view on the high- cost government programs which he has supported in the past is also consistent with Reagan's views, he added.

"What I have been asking myself in recent years is, 'Are we really getting our money's "There is a serious question in my mind in that as much as I voted for these programs are they doing what I intended them to do?" A review of Schweiker's voting record shows that he has moved sharply to the left over the past 15 years in the eyes of the major liberal, conservative and labor rating groups. But since he accepted the former California governor's invitation to be his prospective vice presidential running mate, Schweiker has been trying to soften his liberal image and soothe fears of Reagan's conservative backers. Schweiker said in an interview Saturday before a joint appearance with Reagan in Charleston that there was no change in his fundamental be- liefs between his House and Senate years, but that he was representing a different constituency. He applies the same logic to joining forces with Reagan. Reagan and Schweiker have produced a long list of areas of agreement, including mutual opposition to amnesty for Vietnam war draft evaders, abortion on demand, gun control, forced busing 'and detente as practiced by Secretary of State Henry A.

Kissinger. Their three areas of severe disagreement are Schweiker's near-perfect prolabor voting record and his coauthorship of two pieces of legislation which Page2A Garden City Telegram Wednesday, Aug. 11,1976 Reagan has campaigned against as ruinous, expensive extensions of big government. These are the Kennedy national health insurance bill and the Humphrey-Hawkins full employment bill. In all three cases, Schweiker now has accommodated his views to those of Reagan.

By The Associated Press Traditional home mortgages with fixed monthly payments are giving way in scattered areas of the country to experimental plans designed to make it easier for would-be buyers to get loans. And the new types of mortgages usually wind up costing consumers more money. The Federal Home Loan Bank Board reported that at theiend of the first quarter of thteyear there was $456 billion mortgage debt -Payment Home Mortgages Fall to New Ideas on one-to four-family, non- farm residential properties. About half the debt was owed to savings and loan associations. Most of the mortgages were written in traditional form.

The average annual interest rate, as of June, was just under 9 per cent. Richard Marcis of the board's Office of Economic Research said the use of nontraditional mortgage forms, including variable rate loans where the amount of interest is allowed to fluctuate, is still "relatively limited." At the same time, he said, the variable rate loan has been adopted by 10 state- chartered savings and loan associations in California. These institutions have loaned $2 billion on variable rate mortgages in 16 months, he said. (Note: federally chartered savings and loan asspcations are prohibited from offering variable rate mortgages; the situation at statechartered institutions differs from state to state.) Another alternative, called the graduated payment mortgage, has been proposed by Sen. Edward W.

Brooke, R- Mass. Under- this plan, the rate of interest would remain constant, but the size of the monthly payment would fluctuate. It would be relatively low at the beginning making things easier for young people just starting out and would increase over the years as inflation and ex- perience push up earning power. David Strachan of the American Bankers Association said the interest rate on the traditional mortgage is based of money to the bank now and over the life of the loan. With a variable rate mortgage, Strachan said, "the bank can operate a lot closer to the actual cost of money." Allowing the interest rate to fluctuate also makes mortgages com- petitive with other types of loans which usually have higher interest rates.

To attract the deposits which are a major source of mortgage money, a thrift institution such as a savings and loan association must pay an interest rate that is competitive with other investments. Bankers contend this is more difficult when the institution is locked into a long-term loan returning a fixed amount of money. Oliver H. Jones, executive vice president of the Mortgage Bankers of America, said a variable rate mortgage gives the borrower "a slightly lower initial interest rate, but one that would vary, up or down, with the future cost of money to the lender." Up or down? Theoretically, of course, the interest on a variable rate mortgage could decrease. Practically, however, most bankers admit it will probably go up.

"You would probably have to pay Page 3A Garden City Telegram Wednesday, Aug. 11,1976 more every six months," Strachan said. Regulations covering variable rate mortgages do include ceilings, however, limiting the amount that the interest rate can increase and the frequency with which it can rise. Strachan said the maximum increase is usually about 2 per cent. 10c OFF REG.

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