The Journal Times from Racine, Wisconsin • 20

Campaign's visions how to economic realities knows it and relies on it. tions appear unclear, contradictory, and often confused." That critics are beginning to sound off does not mean, of course, that they are more correct than Reagan. Ackley made his own miscalculations in the 1960s, and some of his fellow critics trace the beginnings of today's inflation all the way back to the belief that the country could simultaneously afford a Vietnam war and a Great Society program. What the critics cannot measure -r and unfortunately for him, what the president cannot document is the role of leadership in overcoming the nation's economic problems. Faith in the president can go a long way to restore economic stability, and them could produce numbers anywhere near as rosy as those expected by the Reagan team, and they were beginning to say so with growing assurance.

An acerbic comment by Gardner Ackley, former chairman of the Council of Economic Advisers under President 'Lyndon Johnson, gives a sense of what was to come unless Reagan more clearly expressed himself. Writing in a university publication, the professor stated that "One feels the abs eoce of any coherent economic policy, or even any coherent conception of a policy, that holds promise of leading us back to stability, prosperity, and progress." Instead, he said, "ideas and recommenda By John Cunniff AP Butlnett Analyst NEW YORK The economics of politics and the economics of reality are different things, and President Reagan, Congress and the American people will sooa learn how big the differences are. A political candidate's economics caa include faith, hope, promises, visions and the like, which, If they are.communicated well, can induce a listener to suspend critical judgment and vote for the candidate. The economics of reality, which move Into the picture soon after the election, are measured by more sober criteria, harder judgments and a better sense of what is possible or acceptable within a period of time. Selling that notion to Congress, which must examine his programs, is another matter.

Inspiration counts with voters, but it isn't something Congress can measure in deciding to approve or oppose Reagan proposals. And so the economics of the election may give way 'tomorrow to the economics of reality, but not by so much that the president doesn't remain far more optimistic than most private sector forecasters. What the nation and Congress are likely' to hear is something less visionary and more down to earth, a bit of a compromise, a concession to the political realities, a recognition of what is possible. Reagan is scheduled to reveal the latter Wednesday, and it's no secret he has scaled down his own expectations about taxes, inflation and gross national product. He is still optimistic, but more realistic too.

A tax cut still seems inevitable, but 'the effective date may be delayed until later this year. GNP is still expected to grow more than 5 percent next year, but that's down from 7.5 percent. Inflation Is projected at about 6 percent by late 1982 instead of 4.3 per cent. This lowering of expectations was to be expected, but it came none too soon. Having had time to feed Reagan's projections into computers, economic analysts were becoming increasingly critical." Few of Business 4C the Journal Times, Tuesday, Feb.

17, 1981 Racine, Wis. (irkland cautions on political wars ments after his meeting with the executive council. "The basic disagreements of the past between the Republicans and organized labor need not be the dominant issues of the future," Baker told reporters. He said the meeting went well and that "there was no hostility" even though the labor leaders voiced concern about President Reagan's plan to sharply reduce spending on various social programs. Kirkland said he has no quarrel with balancing the budget, except "we simply don't believe the answer lies in the paper exercise of budget balancing.

I anticipate that we will have some difficulty. There are some programs that we played an important role in bringing Into being." i I kv' a-'-- CP I lb Iiiv AP laserphoto BAL HARBOUR, Fla. (AP) AFL-CIO President Lane Kirkland, urging labor leaders to come to grips with the conservative mood of the country, says opposition to the Reagan administration's proposed budget cuts should not erupt into political warfare. Kirkland and the 35-member executive council of the labor federation expressed broad disagreement Monday with the administration's developing economic policy. The AFL-CIO chief said, however.

"I recognize the facts of life. I recognize that fiscal conservatism is dominant today and there will be a major effort to make large-scale slashes in the federal government." Following an executive council meeting with Senate Majority Leader Howard Baker of Tennessee, Kirkland said as he has in the past that organized labor shouldn't stake all its hopes on one political party. "The American trade union movement is not conditioned or premised on who's in the White House or who's in Congress," he told a news conference. "We had our differences with the prior administration and we have had presidents in the White House who did not share our philosophy nor were overwhelmed with warmth about our role in society." Kirkland's remarks came as the AFL-CIO's political action committee studied ways to improve the lobbying clout of the 14 million-member federation, which has seen its influence wane since last November's election. Kirkland said he believes the organization has "abundant opportunities to tend to our trade union garden and prepare for the battles to come.

If we depended on the out-Come of an election for our survival, we would have been dead years ago." The AFL-CIO's invitation to Baker reflected Kirkland's oftstated desire to improve lines of communication between unions and the Republican Party. "We look forward to finding areas of common interest," Kirkland said. "I think there are many areas in which we can meet common understanding." Baker expressed the same senti Solar train to run outdoors on a Z-guage track. The cost of the suit case-sized, self-contained railway is $4,000. Nancy Marquardt, in Atlanta, shows off Marklin solar-powered electric train.

The train is designed British coal miners strike New car sales drop by 7.4 Sales of U.S.-built new cars fell 7.4 percent In the first 10 days of February despite a 26 percent sales gain by Ford Motor Co. In the Feb. 1-10 period, U.S. automakers said their dealers delivered an estimated 134,734 cars, down from 145,547 in the year-earlier period. The total includes an estimate for American Motors which reports its sales only once a month.

General Motors sales fell 19 percent, to 78,674 cars; Ford's sales rose 26 percent to Chrysler sales declined 7.6 percent to Volkswagen of America sales rose 72 percent to and AMC's rose an estimated 25 percent, to 2,000. AMC's estimated total does not Include Eagle four-wheel-drive vehicles or Jeep utility vehicles. Ford and analysts attributed that company's sharp year-to-year sales gain for the period to a variety of sales incentives It has been offering dealers and consumers, the Wall Street Journal reported. Chrysler also has a rebate program going, and AMC has had a 10 percent price cut in force on all but Its Jeep vehicles since mid-January. LONDON (AP), Prime Minister Margaret Thatcher's Conservative government was hit by its first coal strike today as 26,000 militant Welsh miners stayed home to protest the government's plans to close nearly 10 percent or more of the mines as an economy measure.

Energy Secretary David Howell called for a crisis meeting with leaders of the National Union of Mineworkers and the government's National Coal Board amid threats that the strike would spread nationwide next week. Several hundred Welsh miners walked out Monday, 12 hours early. Some 23,000 miners in Scotland and southern England's Kent County were expected to join the strike next Monday. Officials of the mineworkers' union said they expect 80 percent of their 230,000 members will vote Thursday for a nationwide strike. The Times of London said the strike could prove to be the Conservatives' "most critical challenge from the trade unions" since they displaced a Labor government in May 1979.

Britain is still heavily dependent on coal for power and heating despite Its North Sea oil riches. A long mine shutdown, as industry is struggling under Mrs. Thatcher's harsh monetarist policies, could touch off industrial and economic chaos. A long miners' strike in 1974 helped topple Prime Minister Edward Heath's Conservative government and triggered a general election that the union-backed Labor Party won. Mrs.

Thatcher's government is already under heavy fire because of growing unemployment, which last month rose to about 8.5 percent of the work force. But to cut the Coal Board's big deficit, it is planning a "streamlining" program that calls for the closure of at least 20 of the 219 nationalized mines. The total could rise to 50 pits, with the loss of as many as 30,000 jobs. Ice cream store to open An ice cream and candy store called Sweet Temptations will open in Westgate Mali, the retail development on the south side of Washington Avenue north of Ohio Street anchored by a Shopko discount store. Mrs.

John Walley, 1468 Crabapple Drive, said she and Mrs. James Greening, 317 West will operate Sweet Temptations through a corporation they formed called Normar Inc. Mrs. Walley said plans call for opening in mid-March. The store will occupy about 1,600 square feet of space.

It will have seating for 16 people, but will be essentially a carryout store, Mrs. Walley said. AMC extends price cut American Motors Corp. said late Monday that it would extend its 10 percent price cut to March 15. The program applying to all AMC autos, but not to the company's Jeep utility, vehicles, was to have ended Friday.

Chrysler 7 percent rebate program is scheduled toend Feb. 28. There has been no word on whether Chrysler will also extend it. Goldbhtt's exec quits Goldblatt Bros. Chicago, said Gerald F.

Buccino, executive vice president and. chief administrative and financial officer, resigned to form his own Investment banking business. Chester A. Grabowski, finance vice president and controller, will take on Buccino's responsibilities but not his title, said a spokesman quoted by the Wall Street Journal. Both Buccino and the spokesman denied the resignation is related to the regional department store chain's financial problems, the Journal reported.

On Feb. 2, Goldblatt Bros, announced plans to close 10 to 15 of its 39 stores. The company said the closings would not include any stores in Chicago, and Gilbert Mintz, a senior vice president, said the Racfne store, at 3701 Durand Ave. in Elmwood Plaza, would not be closed. Goldblatt Bros, has posted losses for seven consecutive quarters.

For the nine months ended Oct. 4, losses reached $8.9 million on sales of $171.5 million. In the 1978 and 1979 fiscal years, the company lost a total of $8.3 million. Carpet store to close Carpet Seconds of Racine, a store at 3072 Doug-' las Ave. opened in the fall of 1979, will close April said Mary Hansen, the store's manager.

The store is operated by ft Carpet Distributors whose shareholders at one time were Bernard Chulew and Darrell J. Kirnbauer. Hansen said Chulew is the only shareholder now. Chulew could not be reached this morning, nor could Kirnbauer. Toyota profit falls Toyota Motor Japan's largest auto maker, said its profits fell 12 percent in the fiscal first half ended Dec.

31 on a 7 percent sales increase. Profits declined to the equivalent of $278.4 million from $316.7 million a year earlier, converting the yen at its current rate, the Wall Street Journal reported. Sales rose to $8.06 billion from $7.53 billion. Officials of Toyota attributed the profit decline to higher prices for parts and increased electricity rates. The yen's appreciation did not significantly affect earnings because of price increases, they added.

Toyota's vehicle sales rose 2.9 percent in the half to 1,576,249 units. Domestic sales declined 9.6 percent from a year earlier to 694,437 units, due to a slackening in the Japanese economy, officials said. Exports in the half rose 16 percent, to units. Penney to close Treasure Islands J.C. Penney Co.

confirmed today that It will discontinue its Treasury discount store operation and said it will close the 34 Treasury and Treasure Island stores by June 1. The closings include six Wisconsin stores, which operate under the Treasure Island name. Four of those are in the Milwaukee area, at 9000 N. Green Bay Road, Brown Deer; 12975 Capitol Drive, Brookfleld; 2917 W. Loom Is Road; and 2825 S.

108th West Allls. The other two are at Madison and Appleton. A spokeswoman at Penney's headquarters in New York City said the Treasury division has been losing money since 1973. In a prepared statement, the company said it had "concluded after a comprehensive study" that the Treasury operation "does not position us to compete effectively in the discount sector of retailing." That sector, most notably, Includes mart Corp. Penney is the nation's third largest retailer.

mart Is the second largest and leading discounter. Penney said It has begun "preliminary discussions with several poteritlal buyers" of the Treasury and Treasure Island store locations. Managers of the six stores la Wlscoasin were informed Monday of the1 decision to close. Chrysler waits on Canada llcilrTeiv opem WASHINGTON (AP) Senate in- The cnmmin'. The committee's rankina Demn.

vestigators are trying to prove that crat. Sen. Sam Nunn of Georgia, said the hearings "will examine a pervasive pattern of organized crime control of the industry up and down the East Coast, with particular emphasis on New York, Newark and Miami," said Nunn, who initiated the Investigation last yearwhen he was committee chairman DETROIT (AP) Chrysler Corp. was waiting today to hear whether the Canadian government has pledged more loan guarantees than United States authorities were counting on. Reports from Ottawa over the weekend said a cabinet committee had approved $119 million in guarantees in exchange for the No.

3 II. S. automaker's promise of "limited" car production alongside trucks in Windsor, Ontario, a total In new investment of about $700 million. The figures are in U.S. dollars.

Canada originally approved $170 million in loan guarantees in exchange for $1 billion in investment through 1985. But car production after 1983 was dropped from the trlmmed-down investment plan approved by the Chrysler Loan Guarantee Board in Washington on Jan. 16 and the planned $1 billion was cut to about $600 million. For that reason, the board staff estimated that Chrysler could count on only $85 million in backing from the Canadian government. Chrysler, according to a company executive who asked not to be named, now expects to draw the $400 million in guaranteed loans called for under the Jan.

16 plan on Friday instead of Wednesday. Investment bankers postponed the planned issue of notes on the grounds that capital markets would be uneasy Wednesday and Thursday because of President Reagan's speech on the economy. But before Chrysler can get the money, the loan board must approve the Canadian action and the automaker's nearly 150 lenders all must agree to accept 30 percent payment on $500 million in loans and conversion of another $568 million in loans to preferred stock. organizea crime proms irom ana controls widespread corruption of union locals at East Coast ports. In hearings opening today, the Senate Permanent Investigations Subcommittee will explore corruption in the International Longshoremen's Association, which represents stevedores and other dock workers.

A five-year Justice Department and FBI Investigation, code-named Unirac for union racketeering, has yielded more than 100 convictions of ILA officials, corporate executives and others on corruption charges stemming from waterfront crime schemes. Dollar, gold LONDON (AP The dollar droooed end gold rose on foreign exchanges today, the dollar closed at 207 45 yen in Tokyo, down from 307 eS Monday. Other dollar rites, compered to late Monday 1 2liO West German marks, down from 2 4M 2 0I6O Swiss francs, down from 2 040 5.I45S French Irenes, down from 1125. 2 23 Dutch guilders, down from 2 4420. 1,055 50 Italian lire, down from 1,062 00.

The British pound cost 12 213, compared to 12 2600. London's five bullion houses fixed a recom-mended morning gold price of i46.50 an ounce, up from 1490.00 late Monday. In Zurich, the metal traded at a median S497.90, up 17. Silver was quoted In London at 113 20, up from 112 90 Bits of business Livestock MILWAUKEE tAP) Monday's closing cattle market: good fo choice steers 59 00-60 00. good to choice heifers S7.00-SV 00; good Hoisteln steers 51.00-Stu.

00; standard to low 41 00-51 00. iood dairy heifers 47 00 51 00; utility cows I 0047 00; canners and cutters 41.00-44 00; com-merclel bulls 54 00-56 00; common 50 00-54 00 Monday's closing calf market: choice calves 75 00-05 00, good calves 65 00 75 00; feeder bulls 70 00 60 00, feeder heifers 60-150 00 Monday's closing hog market; llgft butchers J9 50-42 00; heavy butchers J7 00 39 SO; light sows 35 00-31 00, heavy tows 35 00-31 00, boars 32 00 down. Monday's doting lamb market: good to choice 0.00-4 00, ewes and bucks 6 00-12 00. Tuesday's estimated receipts. 700 cattle; 500 calves, 200 hogs and no sheep fr Inc.

floor of the building at 1210 Douglas Ave. Checker Quotation, at of io so a.m.: previously occupied only the second floor. In a Hijh low Lt news release, the company said the move gives it imlK, the opportunity to "expand both personnel and the 17 scope of client services." 'fit Evans ny, First Wis Corp Gn SI9 Corp 42H 41't tlVt The Motorcycle Safety Foundation, Linthlcum, Hardee 271 said William Knadson. operator of Bill's Cy- jflSri ''J cles a Kawasaki -dealership on South High- IL fc Levi Strauss 47Wi 46H 47 way 32, has won a Distinguished Dealer Award Massey 4vn 4 from the foundation for 1980. Among other things, 2'w the foundation cited Knudson for helDlne start a 30' Modi rn W-H rider training program at Gateway Technical In- Northwest mt mm, stltute in 1973 "by offering to supply motorcycles 7H and textbooks to students taking the course.

Be- iH 1' sides loans of six to eight cycles each year to the staSrieinc' iS program, Knudson often pays student fees for the winc classes." The foundation Is sponsored by the man- i "I ufacturers of Kawasaki, Honda, Yamaha, Suzuki w.seipow to, and Harley-Davldsoa motorcycles. RUKfr JJ H.B. (Bart) Klotxbach of the Wisconsin Cheese-man, Madison, has been elected president of Wisconsin Gift Cheese Association. He succeeds Richard Meyer of Flgi's Marshfield. Rsbert George of Harp Kettle Cheesehouse, Madison, was elected vice president.

He succeeds Mario Ventura of Mars Cheese Castleinc, a business on the west side of 1-94 at Highway 142 in Kenosha County. New members of the association's board of directors include Mary Walsh of the Cheese Box, Lake Geneva. Armon L. Haagen has been namexl sales director for the 484-room Hyatt Regency Milwaukee, Hyatt Hotels Corp. said.

Haagen, 29, previously was a sales manager at the Hyatt Regency Chicago. He joined Hyatt Hotels in 1976. The Hyatt Regency Milwaukee, at 333 W. Kllbourn opened last May 28. Checker Deslga Group a graphic design studio, sai(i It has doubled the size of Its offices to Net Chng Vi ve NC NC NC '( NC NC fVe NC NC 'A NC NC NC NC NC NC NC NC Hi Potatoes CHICAGO (API (USDA) Maor po''0 markets FOB shipping points US IA Friday In 100 lb sacks: Mlnnetote North Dakota round reds 13 0013 50; Idaho rutsets II 50 1100, Washington russets 10 00-10 50; Wisconsin rutsets 14 00; Oregon rutsets II 90-12 50, SO lb cartont Idaho rutsets 2O 0O-2I O0: Wisconsin ruttett 1100; Weth-Ington rutsets ll 00-19 00; Coloredo ruttett ft 00-23 00, Oregon ruttett 19 00-20 00..