The Journal Times from Racine, Wisconsin • 20

the Journal Time, Wedneidiy, Augurt 12, 1981 AC Business i Economy, not workers, blamed for drop in output WASHINGTON (AP) Ddh't blame the American worker (or the past decade's slowdown in national productivity growth, a Brookings Institution economist says. He puts much of the blame on changing world economic conditions including soaring oil prices that quickly made expensive plants and equipment obsolete. The nation's productivity growth as measured In non-farm business declined from an annual rate of 2.77 percent in the 1957-68 period to 1.89 percent in 1968-73 and finally to 0.64 percent in 1973-79, economist Martin Baily reported in the newest edition of Brookings Papers on Economic Activity. Causes of the slowdown, which has worried several U.S. presidents as well as numerous company executives, have remained "largely a mystery," the editors of the Brookings book wrote in an introductory summary.

But Baily notes in the book, which was released Tuesday, that some have blamed the caliber of workers, sometimes concentrating on the growing numbers of young and female Changes in age, sex and quality of the work force and in time spent on the job may have accounted for a small part of the slowdown, he wrote. But he contended that for those changes to have caused big drops in productivity growth, young new workers, for example, would have had to be performing at about half the level of other employees. "In my view, such a sharp decline is Implausible and of a much larger magnitude than anything implied" by somewhat lower Scholastic Aptitude Test scores or related evidence, he wrote. More likely, Baily said in a news conference Tuesday, the productivity problems are substantially due to what he described as the U.S. economic system being "hit with some hammer blows over the head" from outside sources during the 1970s.

"Major structural changes have taken place that have rendered old capital obsolete," he wrote in the book. Other economists have said that sharp increases in oil prices in the early 1970s had significant but limited effects on productivity in relation to capital investment, he wrote. But he contended in the book that effects were greater than might be first observed. "The most familiar example is the automobile industry, in which the shift of demand from large cars and large engines has caused a major restructuring of the industry and its capital stock," he wrote. journal Times photo by Mark Hertzberg To the bare walls A liquidation sale that started July 9 is scheduled to end Saturday.

The store will close, ceasing business after 83 years. With the selection getting more limited by the day, Ronald Eckhardt, 2516 Dwight examines a suit at Zahns department store, 500 Monument Square. Job freeze review ordered Recall releases to be limited In a unanimous opinion, the U.S. Court of Appeals on Tuesday ordered the government to prove that the jobs caught in the freeze were revoked through proper procedures by authorized people within each de- WASHINGTON (AP) More than 20,000 people whose appointments to government jobs were rescinded in President Reagan's freeze on federal hiring last January will get another chance to challenge the action. to 'only when necessary' McMahon ousted as job chief propriate circumstances, I will do Lowell Jackson, who is moving to DILHR from the Department of Transportation Aug.

31, named James Van Sistine to McMahon's post. Van Sistine, 38, is deputy administrator of the Division of Motor Vehicles in the Transportation Department. McMahon, head of the Job Service since June 1, 1980, said Jackson told him his performance had nothing to do with his firing. MADISON James McMahon was replaced Tuesday as administrator of the Wisconsin Job Service and called his dismissal a "reprisal" for speaking out about problems in the Department of Industry, Labor and Human Relations (DILHR), McMahon, 50, said his loyalty apparently has been under question since last spring, when he spoke out "against management deficiencies" involving a $2.1 million projected deficit in federal funds. sent letters to registered owners of the vehicles, as required by law.

Ms. Claybrook said 25 percent of owners don't receive the recall notices because they have moved or other reasons. But Peck said there is no reason to tell the public about all recalls. "The purpose of a recall is.to have it (the vehicle) removed from use," he added. "It is not to create publicity or condemn manufacturers." He said a public statement from the government helps sometimes, especially when the recall is major or the defect a serious one.

"In ap exactly what my predecessors did," Peck said. When the cars are fairly new, however, it is easy to reach the owners, he said. In such a situation, there is no reason to tell the general public, he said, adding, "When there is no safety benefit, it may be irresponsible to publicize it." Peck, an attorney, said manufacturers know they are open to a flood of lawsuits if they don't do their best to tell owners about a recall. He said this, will motivate companies to pursue recalls vigorously. partment and agency.

"It remains to be decided whether those appointments were capable of being revoked, and if so, whether they were in fact revoked," Judge Edward Tamm said. Concurring in the opinion were Chief Judge Spotts-wood W. Robinson III and Judge Abner J. Mikva. Tamm said the government had "played hide-and-seek with job seekers" but cautioned that the court's ruling does not automatically entitle those whose jobs were eliminated to receive money damages or other courtordered relief.

The appeals court dismissed as a "fiction" the government's main argument that the job seekers did not actually have appointments because they had not completed certain government personnel forms. The decision affects people who had received job commitment letters from the federal government between Reagan's election last Nov. 4 and his inauguration Jan. 20. It reverses a ruling last February by U.S.

District Court Judge Charles R. Richey that job seekers had only received "offers" rather than official appointments. Richey had up- held Reagan's authority to withdraw such offers as part of his broad power over the federal civil service. WASHINGTON (AP), The Reagan administration, saying it may be "irresponsible to publicize" some automobile recalls, will not tell the public every time one is ordered. Raymond A.

Peck, head of the National Highway Traffic Safety Administration, said Tuesday that the agency will issue press releases about recalls only when they are "necessary for auto safety." Peck said the policy was not in conflict with Carter administration practices, but his predecessor, Joan Claybrook, disputed this. "This is a change," she said. "Our policy was to have press releases on all recalls unless the manufacturer did it. We tried to keep the public notified." As reported Tuesday, Ford Motor Company, Chrysler Corp. and Volkswagen of America reportedly have conducted unannounced recall programs in recent months.

They have 2 state savings and loans merge Consumers more confident pi $38.7 million. Fort Savings has branches at Elkhorn, Edgerton and Jefferson. First, Federal has a branch at Lake Geneva. The merger plan is subject to approval by the Federal Home Loan Bank Board and the Wisconsin savings and loan Fort Savings' and Loan Association, Fort Atkinson, and First Federal Savings and Loan Association of Walworth County, Delavan, announced plans to merge Jan. 1.

At the end of 1980, Fort Savings reported assets of $78.3 million and First Federal of Walworth reported assets given the abrupt softening of the economy in the second quarter," said raoian Linuen, me uuuiu a director of consumer economics. "It suggests that, the Federal Reserve willing', business should be reasona- Ray-O-Vac plant struck NEW YORK Consumers were more confident about the economy in July, mostly because the purchasing power of their dollars eroded less rapidly, and this confidence should translate into a relatively good fourth quarter, the Conference Board said Tuesday. The board, a business-research group, said its consumer confidence index, in which 1969-79 equals 100, advanced to 81.8 In July from 79.9 in June. It was up points from January. July was the fifth consecutive month the index has improved since hitting the year's low of 61.1 in February.

"The trend is rather reassuring, ing the plant. Negotiations between Ray-O-Vac and the Teamsters union were to resume today. The union recently won an NLRB representation election at the plant. PORTAGE (AP) About 500 employees at the Ray-O-Vac battery plant in Portage have walked off their jobs. Ralph Olsen, executive assistant to the president at the company's Republic employees agree to pay in stock bly good in the final quarter of the year.

If the Fed loosens the credit reins a bit, we should see the economy move forward' The board, which conducts a monthly survey of 5,000 households across the country, found that buying plans gave ground in July, bul the dip was due entirely to a change in plans to buy a home. The buying plans index fell to 81.7 from 89.3 tr June. Madison headquarters, said the strike "came as a surprise to man- Cash Grain agement. Olsen said supervisors are operat CHICAGO (AP) WhMt No. 2 hard rtd winter 36S'n Wednttulay; No.

2 soft red winter 3V0'n. Corn No. 2 yellow 3.21 Van (hopper) unquoted for (box). Oats No. 2 heavy I n.

Soybean, No. 1 yellow IMVm. No. 2 yellow corn Tuesday was quoted at (hopper) unquoted tor (box), MINNEAPOLIS Employees of Republic Airlines have agreed to a stock-for-pay plan to help the airline with cash flow problems resulting from the air traffic controllers' strike, Republic said Tuesday. Under the plan, unionized employ The price paid for the common shares will be the closing market price on Aug.

31. The program involves August pay only and the stock payments will apply to September paychecks. Republic will issue the stork rprtifl. Varsity Boot Shop sold Dollar, gold ees and management will take com cates. in September.

LONDON (API The dollar contlned to ease Varsity Boot Shop, a 42-year-old retailer of men's, women's and children's footwear at 3306 Washington Ave. in West Racine, has changed hands. Thomas A. Burch, 23, the store's manager, said he bought the busi ness from Frank LaBrasca, 64, who retired. Sale price was not disclosed.

LaBrasca had operated the store since 1974, when he bought It from founders Harry Olander and Harry Krieger, who started the business in 1939. mon stock in place ot 15 percent or their pay for time worked in August. The stock payments will reduce Republic's cash outlay by an estimated $6 million, the airline said. The airline said the program will help conserve cash flow affected by the first days of the strike. Republic said its losses exceeded $3 million the first three days of the strike.

Mai for potato disease curbed back on protit-taking in early trading today from its new peaks hit at the beginning of week, while gold prices opened higher. In London, the dollar lost more than a cent against the British pound, which cost 817662 in early trading, compared with 81.7737 at the clou Tuesday. In Tokyo, where trading ends before If begins in Europe, the dollar closed at 233.30 yen, sharply down from 237.60 yarn on Tuesday. Japanese officials predicted mat the dollar would continue to decline against the yen In the face of the strong performance of the Japanese economy. dollar rates against other key currencies compared with late rates Tuesday; 2.5540 West German marks, down from 2.5610.

-2 1737 Swiss francs, down from 2.2015. 6 1075 French francs, down from 6 1575. -2 8305 Dutch guilders, down from 2 8500. SO Italian lira, down from 1,265 00 Gold opened London and Zurich at 8407 50 a troy ounce, up from 8405 in London at the close Tuesday and 1399 50 In Zurich. Dealers said the higher levels were prompted by an easier dollar.

Bullion prices continued to move up in busy trading later Monday, trading in the S408 to S409 range. it it goes up to 8410. we'll be teeing vary much higher prices," one London dealer predicted. Gold closed sharply higher In Hong Kong at 8409 09 an ounce, up SI2 25 from Tuesday's close. Silver traded in London at 19 an ounce, compared with 72 at the close Tuesday.

duced using a bacterial process then were la-bled with a radioactive marker and used to "de- (AP) The Agriculture Department says its research scientists have developed a test for detecting and eliminating a major disease of potatoes, a step that could help feed millions of poor people in tropical countries. The test was developed at the department's research center in Beltsville. Md. It can detect the potato spindle tuber viroid called PSTV by the scientists which causes the disease. Infestation can mean losses of more than 50 percent to a crop, officials said Tuesday.

In warm climates, the disease is so severe that potatoes cannot be grown unless PSTV is excluded from seed potatoes used to propagate new plants. The new test was described by Drs. Robert A. Owens and Theodor O. Diener, plant pathologists in the department's Agricultural Research Service.

"Since potatoes provide a nutritionally balanced food more efficiently than any other major crop, these plants are a great potential food, source for countries with large populations and low income," the agency said. Diener was the first to discover that potato spindle tuber disease is caused by a new type of disease agent, which he named a "viroid" in 1971. Virolds are approximately one-fortieth the size of the smallest virus and are composed of only one small molecule of the genetic chemical, ribonucleic acid or RNA. The automatic equipment normally used to check seed potatoes for virus diseases depends on the existence of a virus-associated protein for identifying the bad seed. Virolds, however, do not have any protein and escape detection.

Using recombinant-DNA technology that has enabled scientists to splice genes and clone genetic materials, the scientists developed a "mirror image" copy of the viroid RNA, which was called a complementary or cDNA copy. The cDNA copies literally millions were pro Livestock ieci even smau amounts oi'ine viroia in aiseasea potatoes." If the harmful virpids were present, they would attract the cDNA copies and join together enough so they could be detected through a photographic process. "This new procedure could easily be automated," the report said. "Several parts of the potato tuber can be checked for PSTV: the sprouts, buds or eyes, or the skin." The disease is easily spread by touching the plants with infected hands or tools, or through seed and pollen, and becomes more severe as successive crops of infected potatoes are planted. "A result of basic research, this new test provides a way to eliminate diseased potatoes from breeding stocks, essential to disease-free, nutritious crops, in temperate climates as well as In extremely warm the report said.

MILWAUKEE (AP) Tuesday's cattle market' good to choice steers 59.0042.00; good to choice heifers 56 00-60 00; good Hoistein steers 50 Od-tO 00; standard to low 46 00-50 00, good Oairy nailers 47 00-50 00, utility cows 44 00-47 00; canners and cutters 39 00-44 00; commercial bulls 50 00-53 00, common 46 00-50 00, Tuesday's calf market: choice calves 70 00-75 00, good calves 60 00-70 00; feeder bulls 90 00-1 10 00, teeder heifers 90 00-1 50 00. Tuesday's hog market lignt butchers 48 0O 51 00, neevy Butchers 47 00-48 00; light and heavy sows 42 00-44 00; boars 44 00 and down. No lame market ettooiisned. Wednesday estimated receipts: 500 cattkl, 250 calves, 200 hogs and IS sheep. Silver and gold SILVER Chicago Mid America 1,000 ounce August 19 00; September 58 9 7, October 19 09; December 89.14; February 9 60, March 89 73, April 89 84, June 810 II; October 110.61; Octobar (12 15.

Estimated tales, 162 contracts. GOLD Chicago Mid America 33 troy ounces September 8412.60; December 1428 SO, March 1446.50; June 846J.O0.' Estimated sales: 914 contracts. Foreign exchange (Quoted In American cents) Aug. II Aug. 10 Vr.

Ago England 17717 17645 2.3710 Argentina 0001 .0001 0005 Canada 8078 .6046 S638 Australia 1 1280 l.uoo 1.1560 0554 0553 0789 Belgium 0237 0237 0350 Braiil 0095 .0095 01(0 Denmark .1235 181 1 France 1623 1620 2421 vV. Germany 3i3 3190 5597 Greece 0161 .0159 0225 Holland 3505 .3497 5145 India 1086 .1089 1291 relend 1 4240 1 4190 2 1160 Israel 0815 0815 0180 Italy 0007 0007 oou Japan 0042 .0041 .0044 Mexico 0405 .0405 0433 Norway 1590 .1589 203 Portugal 0147 0148 0203 Saudi Arabia 2919 2918 3005 Spain 0097 0097 0138 Sweden 1848 Switiorland 4535 ,4534 .6051 Over the counter Bid Ash Franklin El 21 7 2i'i Marine Corp 25 254 Mersneil II Corp 214 jj Paost Brewing 154 154 Stearns 3 4 Versa Tech 14 19 Mutual funds Bid Ask Affiliated Fund 9 03 9 74 Century Snares Trust 11 82 12 74 Fidelity Fund I9 Investors 9 33 10 14 Investors Stock 20 84 22 65 Investors Venabie Pay 10 14 1102 Massachusetts inv. Tr 12 7a 13 74 Massachusetts Growth 13 34 14 31 newsati 1 NL Nicholas Fund 18 99 Selected Am Snare 7 66 Wisconsin tnc a 20 Local interest Courtesy Robert Baird 4 Co. Inc. Quotations as It a Net High Low Last Chng AtlegLud 444 44 1 hi Am Motors J- 3 Ha 4 Ameta it Ji NC Bucytvs 2041 I 20 Com.

Can 24 364a Js -4 tmer. tiec 44 44 444a 4 EventP 214 214 214 -4 First Wis Corp 29 NC S4 Corp 3 3 NC inc 28 27 27 NC tCO '9 18 19 marl 2'J 2i 2l La. 21 7J 21 Law Straus Matter 2hj 2 4 Mret 1IK 14 8 II 4 Mei Inc.lptdl n. xc M.IC 3a -4 21 NC SorlllSl tnl 44 e.iiotI inc .17. 164a 17 ai II 74 7 NC lew IWf 14 16 16 NC into tm Taoa, IXl 234 234 Mc i ixa 134 1 Tec 4J 43 43 Iwmtrm 4 JI4iJI)- TmCxK t3-w Z34a -twKtr lt 47 4 47 6C fiP 2J xa 24 -c "9 16 184 Pwr 6-i tec Grain Futures Chicago (API Futures trading en thChl- Farm leader asks buttei sale probe Soviet Union which, according to After the sale was announced last week, a New Zealand embassy offi- Chg 6 02 4 02 024- 024 9-02 9.01 ivv BUOIU Of I lOTUVr.

WHEAT 5.000 bu; Dollars par bu. Open Hign low Last Sep 39 aouvi 3' 3 99 Dec .4 itt 4 31 4 27 4 79V Mar 4 564 4 5 4 55 4 564a May 4 7IVI 4 71 4 4714k Jul 4 78 4 4N 4 7646 4 78vi Sap 4 894a 4 10 4 8846 48 Prev saies 24 948 Prev day Open mt 68 631 up 725. coaai Mea a Dafiara par au. 214 21 4 JI84 1I9 Dec. 1254 3 27 3 23 3 244 3 394 1424k 1346 3 404k May 154 3 554 1 524 1 53 Jul 1634 165 162 1624k 5P 169 4 1 71 1684 164 4 Prev saies 47, aa Prev day open mt lit 746 up 714.

oTt lea mn nounced the 1155 million sale a week ago. An Agriculture Department spokesman said the no-export clause in the sales agreement was Included in part to assure New Zealand and other U.S. trading partners that no more of the surplus would be dumped precipitously on the world market. ousic Kcparimeni oniciats, was prepared to pay about 11.05 a pound for it. Stone said he made his request for a congressional probe to Rep.

Tom Harkin. D-Iowa. chairman of tbe House Agriculture subcommittee oa dairy and poultry. s.iau ucic wiu use puixnase was made as a defensive gesture to keep the United States from dumping the surplus on tbe world market, which would depress prices. New Zealand is the world's largest butter exporter.

Walla I lrwii.ll tX 4r6. -004 0146 I4 Don Kendall ot the Associated Press WASHINGTON (AP) The National Farmers Union is churning up congressional interest in the recent sale of 220 million pounds of butter to New Zealand. George W. Stone, president of the NFU, said Tuesday that the terms of the sale represent "a Reagan administration decision to impose a virtual one-year embargo" on U.SJJbutter exports. Stone'" complained that under terms of the sale the United States agreed not to sell any more butter tor export until next July "unless appro! by the New Zealand Dairy Board." The restriction on further exports was not made public when Agriculture Secretary John R.

kxk an 197 I92W See I 97 Dec .....2 014 ar 2 04-1 Ma 1 A TH4 01 -Ci' l4 1 TVi I 98 1 124 102 1.17 I 97 4 8 1 114 2 124 Prev day oa 47 A 1 4Nt UM paii mm A Senate investigation of the deal was requested Cy Carpenter, president of tbe Minnesota Farmers Union; Leland Mulder, president of the Wisconsin Farmers Union, and Stuart Huber, -president ef the Farmers Union Milk StJarfctUsg Ct operative The farm leaders said the agreement was aa "unbelievle decision to put control ot tbe U.S. dairy export policy in the hands of a foreign country." ment's Foreign Agricultural Service said tbe 220 million pounds told to New Zealand would "Just about tie up" butter shipping facilities until mid-iao. Tbe butter la to be delivered to Zealand betwaea Sept 1 and June 30, 12 Further, be said, tiw no-export stipulation also was a asauraac to other countries that Uta United Slates would stick to agreements reached through multilateral trade negotiations. 7 14 7 14 Aua 1 7 The sale, involving 220 million pounds of butter, was announced last week. It was sold for about 70 cents a pound, about half what the department's Commodity Credit Corp, had invested in it.

The butter also represented half the 44X1 million pounds that bad been stockpiled under the government milk price-support program. lSw Zealand, in return, agreed to not to resell any of the butter to tbe 7 I 7 MV in 7 434 144 50 7 1 7 2' Jao. 7 4 7 63 4 7 4 44 074 814 414 7 0.4 7 I 7 J4 761 78J4 894 8 014 7 174 at 7 84 7 61 61 77 a Bat I 8 674 8 0 Prv ear 6 Open sai 92.443. 544. I.