The Journal Times from Racine, Wisconsin • 16

43 the Journal Times, Wednesday. April 6. 1983 Racine. Wis Investment clubs: horn to make little dollars gtow successful in professions too. O'Hara, whose fulltime work was running and building the national investment club association, was a director of the New York Stock Exchange.

The club has been the model out of which the investment club movement has grown and, says O'Hara, "reached better than 3 million people across the world." It did it of course with considerable study and insight. Alt' members chart and analyze stocks, using NAIC guidelines, and then participate in discussions. But those conservative principles helped. Remember them, advise the people at Mutual Investing Club of Detroit. 1.

Invest a set sum once a month regardless of market conditions. 2. Reinvest dividends and capita) gains immediately. 3. Buy growth stocks companies whose sales are increasing at a rate faster than the industry in general.

$1,124,038 on Feb. 28, 1983, to be exact on deposits of $145,716. All this was reported by George Nicholson the club's broker from the beginning and a member soon after, a man of rare perception and intellectual versatility, and with some justification, it turns out vast optimism. Two of the six founding members Norman Hill and Lee Jacobson remain active in the club, and nine of the other members have been with the club almost from the beginning. In all probability, Mutual Investment will outlive its founders, because young investors have caught the spirit.

O'Hara' two sons are members. Kenneth Janke, president of the national association, is a member, and so is Kenneth Janke 23. Members have been successful in business. One owned five Howard Johnson franchises. Another built a company so successful the club invested in it.

They have been dividends always reinvested now totaled more each year than members' contributions. Then bad times hit and tested the clubs philosophy. Brokers went broke, investors lost fortunes, many investment clubs disbanded, and millions of people who had dreamed of fortunes now sought only to survive the present. The credo of the Mutual Investment Club now the underlying philosophy of the entire investment club movement does not allow for faint heartedness. Down markets, it states, are buying opportunities.

The record seems to show the club may have wavered, but just a bit. In 1972, the accumulated deposits of members fell for only the third time since 1941, to $90,819 in 1972 from $93,493. Nearly $44,000 was withdrawn. It didn't happen again. Though the stock market lost much of its appeal during the inflation of the 1970s, members continued to increase their annual contributions, generally by about $7,000 or $8,000 a CROSSE POLNTE, Mich.

(AP) Back in 1940, when the Great Depression was a recent memory and the post-war boom a dream, a group of amateur investors began contributing $10 to $20 a month each and investing it in stocks. They kept at it. A few nights ago, the Mutual Investment Qub of Detroit, now 19 members strong, held a dual celebration: Its 43rd anniversary, and its new stature as a millionaire, its assets having $1,128,000. Following dinner at the Country Club of Detroit, retreat of the Fords and other great industrial families, it was also revealed that deposits totaled $145,716 over the years, and withdrawals were $319,229. The latter sum, explained Thomas O'Hara, a member from the first year, was used to found private businesses and careers, finance educations, buy houses, finance vacations and assure financial security in retirement.

"The financial record is an amazing indication of what amateur investors can accumulate at the rate of $10 or $20 a month," said O'Hara, wtv now serves as chairman of the National Association of Investment Clubs (NAIC). At the end of the first year, the young club showed a liquidating value of just $812, an amount whose size was offset by monumental and some felt, unwarranted hopes. The hopes were justified. By the end of 1946, club members had deposited $5,080, withdrawn $2,519, and still had a liquidating value of $15,347. After a post-war slump, the value rose to $27,471 in 1951, and to $33,222 by 1952.

Despite repeated withdrawals, the club's value doubled again by 1955, once more by 1959, and again by 1965. when the portfolio's liquidating value was put at $246,738. 1 By 1969, after having deposited $75,327 over the years, the portfolio was worth $535,604. A catalytic mass had been established; the Let deposited dheck sit a bit Health care package for jobless is in the mill By Louisa Cook of The Associated Press Don't be too quick to try to spend that check you deposit in your bank account. It may be your money but not yet.

Officials in several areas have recently questioned check-clearing Expect $73 million from U.S. jobs bill procedures, particularly the amount of time that passes between the date a check is deposited and the date the money is actually credited to your account. The delay varies Irom bank to bank, from area to area and from check to check. According to a consumer newsletter from the Federal Engineers' projects and for military construction. "On the big-ticket items, we are coming out rather poorly," he said.

McAvoy said that, under the most optimistic assumptions, the money would generate about 6,200 new jobs in Wisconsin, and under most pessimistic assumptions about 1,800. Wisconsin's seasonally adjusted unemployment rate was 11.2 percent in February, compared with 10 4 percent nationally. The bill signed into law March 24 provides money for public works, health care and social service programs as well as for mass transit, parks, national forests, rural water and waste disposal facilities and soil conservation. Silver, gold SILVER Chicago Vid America 1.000 ounces April til 18. May SI I 25; June Sll 28; July Sll 45; Aug Sll 65, Sept Sll 63, Oct.

Sll 77, Dec sll 85. Feb S12 18, March $12 25. April J12 SO; June $12 58; volume 768 contracts. GOLD Chicago Mid America 33.2 troy ounces April S426 50, May 1433 00; June $435 50, Aug S440 50; Sept $445 75, Dec. $457 00, March $449 00; volume 1.9)8.

Foreign exchange (Quoted in American dollars) April 5 April 4 Yr Ago England 1 5010 1 4825 1 7498 Canada 8093 8086 8138 Argentine 0000 0000 .0001 Australia 8450 8642 I 0484 Austria 0587 0584 0590 Belgium 0208 .0207 0220 Braul 0024 0024 .0047 Denmark 1141 .1157 .1215 France 1375 1375 .1593 Germany .4124 .4125 .4142 0119 .0119 .0158 Holland 3459 3443 3735 India 1000 .1067 Ireland 1 3025 1 3020 1 4380 Israel 0253 0253 .0518 Italy 0007 0007 0008 Japan 0042 0042 0040 Mexico 0063 0064 .0220 Norway 1398 .1381 1638 Portugal .0104 0104 .0139 Saudi Arabia 2899 2898 2915 Spam 0074 0073 0093 Sweden 1333 .1329 .1679 Switzerland .4826 4807 Over the counter Bid Ask Marine Corp 39' 40' Marshall II Corp 404 41' Stearns 34 4' VersaTech 13' 134 Mutual funds Deposit Insurance banks in California alone reported delays ranging from seven days to 20 days. Bob Walters of Sheshunoff Co. Inc. of Austin, Texas, an industry consulting firm, said there are several reasons for the seeming slowness. The bank does not want to pay you interest or allow you to withdraw the funds "until the bank has actually received credit for those funds," he said.

"They're trying to protect themselves in two ways. If it's a checking account that bears interest, they don't want to pay interest on funds they don't have and can't invest themselves and they don't want those funds withdrawn and gone and then the check comes bouncing back There's no problem there. The problem you get into (is) where the banks push that maybe sometimes too far." Suppose you deposit a check written on a bank in the same town as your bank. It should clear within a day or two at most. "If they don't give you credit on that for a week, then either they're using your funds after they have been cleared, but (they) haven't given you credit for it, or they may have a very, very inefficient man- ner of clearing Bits of busine The average interest rate charged Americans for new mortgages fell in March to 13.35 percent, the lowest level since September 1980, the Federal Home Loan Bank Board reported.

The new average effective commitment rate on long-term fixed-rate mortgages fell two-tenths of a percentage point in March from the 13.55 percent of February. It was the eighth straight monthly decline. The rate stood at 13 23 percent in September 1980 and 17.49 percent in March 1982. The rate is quoted by major lenders for newly built single-family homes with a 25-year conventional mortgage that makes up 75 percent of the purchase price. The Conference Board said its consumer confidence index rose more than 10 points last month in the largest monthly gain in nine years.

The board, an industry-support non-profit economic research institute that regularly surveys U.S. business conditions, said the index rose to 76.5 last month from 65.8 in February. The board's buying-plans index also rose, to 81.2 last month from 75.8 in February. The mean of 100 was established in 1969-70. The survey covers 5,000 U.S.

households. It was conducted for the board by National Family Opinion Toledo. Jetzer's variety store, 420 Goold is going out of business and will close by June 4, at the conclusion of I John Cunniff year. But their investments suffered. From the 1969 peak the portfolio value fell to $394,434 in 1970, recovered to more than $430,000 in the next three years, and declined again to $387,959 in 1974.

But the investment philosophy paid off: The club had established positions when prices began rising again. Through the next few years members were able to "grow" their shares while also withdrawing $12,000 to $38,000 a year. By 1979 the portfolio was valued at $759,038, and by the end of 1982, when the market rediscovered fundamentally sound stocks, the portfolio was above $1 million Banks themselves are concerned about clearing checks rapidly because of today's high interest rates. Walters said the banks have two ways of determining when a check has cleared. They may get actual proof of deposit proof that the funds are available or they may estimate when a check will clear based on where the check originates.

If the bank uses a system based on estimates, you may wait longer for your money than you have to. If you are comparing banks, Walters said, and the length of time it takes a check to clear is important, you should ask: "What method or procedure do you use to give me credit?" If the bank credits you as soon as it receives proof of deposit, you probably will not be able to find a faster system, Walters said. How long SHOULD it take a check to clear? Walters said that if a check is written on a local bank, "999 times out of 1,000, that check will be cleared the following day." An out-of-town check will take longer. It if is a particularly large check, the bank may take special steps to collect it since the extra expense of collection is offset by the extra interest the bank can earn once it has the funds available. ss a final sale.

Jetzer's has been operating since last Aug. 1 at 420 Goold, where it leases about half the space, 6,000 square feet, in a former Piggly Wiggly supermarket building. The other half of the building is vacant. Jetzer's moved to the Goold Street location from 1709 Douglas where it opened in 1966. The business is owned by Wayne Jetzer.

Charles D. Peebler president of New York-based Bozell Jacobs an advertising and public relations agency, said in a telephone interview from Houston Tuesday afternoon that the J.I. Case Co. accounts for about 50 percent of the annual billings of the agency's Milwaukee office. As reported, the office will close June 30 and its operations will be transferred to the Bozell Jacobs office in Chicago.

A news story Tuesday about the closing noted that Case was the Milwaukee office's largest account. The story quoted a senior vice president as saying the office's annual billings for the fiscal year that ends June 30 would be about $17 million. But the executive said he didn't now how much of that was accounted for by Case. John A. Vindekilde said he and his wife on May 1 will re-assume operation of the tea room restaurant at the rear of the Loom, a gift shop at 3919 Washington Ave.

The Loom, as reported in February, is going out of business. Vindekilde chine that makes furniture." Actually, a devaluation works this way: A government, having decided it must increase its exports and reduce its imports, declares that the value of its currency will drop a certain amount in relation to the currencies of its trade partners. An example: The government of Ecuador last month devalued its currency, known as the sucre, by 27 percent in relation to all major currencies. That means it now takes 27 percent more sucres to buy a British pound or a Swiss franc. Or put another way.

you can get 27 percent more sucres for your U.S. dollar. Q. Why should anyone care how much the sucre or any other currency is worth? A. American tourists care.

In the case of Ecuador, Americans living there and those who plan to visit the South American nation will find their dollars buy more of everything Ecuadorian. The same is true in the many other countries that recently devalued their currencies, including Ik II agement and Budget are meeting daily with key senators and staff members to work out the plan, Mrs. Heckler said. "We are looking forward to a concrete proposal being drafted in the next few weeks," she said. The cost of such a program not been determined.

The administration wants a permanent source of money for such a program other than general Treasury funds, according to Senate sources who asked not to be identified. The administration also wants to involve the private sector in provifl-ing the services, the sources said One way would be continuing the health insurance coverage to an erfi-ployee even if the worker is laid off. Another possibility is automatically extending the coverage provided through a working spouse's insurance plan to an unemployed and dependents. Sens. Robert Dole, and David Durenberger, have introduced legislation to provide basic health care services to the unemployed.

Durenberger, chairman of the Senate Finance subcommittee on health, plans hearings on the subject the week of April 18. were not disclosed. The division, with annual sales of about $30 million, makes electrical wiring-related parts, conduit fittings and connectors. It has operations in East Far-mingdale, N.Y., and Mississauga, Ontario. The sale is part of Gould's plan to divest itself of all electrical group units and concentrate on electronic products.

Once spring new-car introductions are over, major domestic automakers will have 296 models for customers in the 1983 model year, the third-largest model count in the past eight years, according to Automotive News. The total for 1983 ranks behind 1975's 325-model offering and 1982's 307, the trade journal said. American Motors Corp. sold nearly three times as many new cars in the final 10 days of March as it did in the year-earlier period, according to AMC's estimate. AMC said it sold an estimated 9,035 cars in the March 21-31 period, up 140.8 percent from 3,378 a year earlier.

The percent increase was based on daily selling rates since there was one more selling day in late March this year than last year. General Motors Corp. said Tuesday its new-car sales dropped 5 percent in late March compared with a year ago. GM said it sold more new cars this year, or 149,908 compared with but the rate declined because of the additional sales day. areas.

Q. Why do governments devalue their currencies? A. The reasons are mostly economic. In Mexico's case the devaluations were meant to strengthen the country's financial condition, which had deteriorated to the point where many bankers feared Mexico might default on its huge foreign debt. The aim was at least two-fold: To make Mexican goods cheaper to foreign buyers thus gaining export income and to make foreign-made goods more expensive to Mexicans thus cutting imports and the flow of pesos out of Mexico.

Q. What does that mean for Americans? A. It means imported Mexican-products, from beer to blankets, are! less expensive. By the same token i means American exporters may lose business in Mexico because it costs Mexicans more pesos to buy each dollar's worth of U.S. goods.

WASHINGTON (AP) A plan to provide health insurance to millions of jobless Americans is being drafted by the Reagan administration, according to Health and Human Services Secretary Margaret Heckler. The administration hopes Congress will enact the plan this summer, Mrs. Heckler told a Senate Appropriations subcommittee Tuesday. The goal, she said, is "a plan which would satisfy the current problem as well as not create a new entitlement program which would be a drain." Sen. Lowell Weicker, subcommittee chairman, cited an estimate by a presidential advisory panel that 22 million to 25 million Americans are without health insurance.

That figure includes those who may never have had insurance, whether they had jobs or not. The Congressional Budget Office estimated earlier that as a result of the current unemployment problems, about 10 million Americans are without insurance. Representatives from her department, the Labor and Treasury departments and the Office of Man said the present operator of the store, Stephen M. Pottinger, will keep the tea room running until May 1. Then, Vindekilde said, he and Mrs.

Vindekilde will take over the tea room and operate it until a suitable new tenant can be found for the store, which they operated until early 1982. "I bought the restaurant back" from Pottinger, Vindekilde said. The Vindekildes own the building. Scene II 4901 Washington a women's apparel store that is operating under Chapter 11 of the federal bankruptcy laws, has filed schedules in court listing debts of $80,165, all of them unsecured and spread among 74 creditors, and assets of $58,025. As reported, Scene II filed in March for court protection from creditors under Chapter 11.

Milwaukee-based Robert W. Baird Co. said Michael G. Pixler, 2101 Circle Wood Drive, has been hired as an investment officer at the company's Racine office, 524 Monument Square. Justin Gorelik and Paul Griffin have joined the sales staff of Equitable Life Assurance Society's Racine office, 1201 Ohio St.

Gould Rolling Meadows, 111., the electronic and electrical products concern that owns the Get-tys Motion Control division, 2701 N. Green Bay Road, said it has sold its electrical parts division to Eicor a closely held company. Terms France, Brazil, Argentina and Indonesia. The effect on Americans of a foreign devaluation is much greater in the case of countries with which the United States does a significant amount of trade. Q.

What about Mexico? A. Because it is a U.S. neighbor, Mexico provides the best example of how a devaluation can touch the pocketbooks of Americans. Mexico has devalued the peso three times in the past 14 months in an effort to stabilize its rocky economy. As a result, the dollar's buying power in Mexico has soared.

That has drawn more Americans across the border, while fewer Mexicans can afford to shop American. After the Mexican government's peso devaluation last August, the governor of California, then Edmund Brown urged President Reagan to declare the Southern California counties of San Diego and Imperial to be economic disaster MADISON AP) The $4.6 billion federal jobs bill is expected to bring about $73.6 million to Wisconsin, the executive assistant of the state Department of Administration says. Peter McAvoy said preliminary estimates are that Wisconsin will get 1.6 percent of the total to be distributed nationwide "That doesn't compare favorably with the fact that we have 2.6 percent of the national unemployment and that our population is 2 percent of the nation's," he said. McAvoy said Monday that the in- balance stemmed primarily from the inclusion in the bill of large sums for ongoing Army Corps of Local interest Courtesy Robert Baird Co. Inc.

Quotations as of 10 30 a Net High Low Last Chng AHeg int 30 29'1j 29 Am Motors 5X4 5 54 NC Ametek 37V. 37' NC Bucyrus 13 13V4 I3s NC Cont. 41' 40 404 Dane Corp 32 32V. Dayton Hud. Corp 67M 66i 67 '4 Emer.

Elec 57. 57 57 -1 Evans 12'i 12 12 -Ve First Wis Corp 34 34 34 NC Gn Slg Corp 42 41' 42 -'i Could Inc 31Vj 31's 31' Inco 12Vj 12 I2'1 '4 mart 31 30 30 -v Let 24 231 24 Vi Levi Strauss 44'4 45' 45 Massey 34 3H 3. Mattel Ill 11' ll'. Mattel Inc (pld) 27 NC 17' 17' -1 Remord Inc 14Vi 14Vj 14V2 Re(23ptd 45 45 45 NC Snap-on Tools 27 27 27i 4 Tenneco 35! 35 JSH- Textron Inc 26 26Vi 24Vi NC Twin Disc 17'. NC Vulcan Mat 61'A 6lv4 Wicor Inc 20'A 20' 20' -Vt Wis 61 Pow 24V.

24 24' WIS PSvC 24'. I 24'4 24V. V. 25 1 25'4 25' NC Grain futures CHICAGO (AP) Futures trading on the Chicago Board of Trade Tuesday WHEAT bu. minimum; Dollars per bushel.

Open High Low Last Chg May 162" 3 44 3 59 3 42 00 4 Jul 3 704 UVU 3 67 3 70' Sep 3 78 3 80' 3 75'A 3 79 00V4 Dec 3 91' 3 93' 3 89 3 91. 004 Mar 4 02' 4 04' 4OOV4 4 03 May 4 04)4 4 10 4.06' 4.08' Prev sales I 573 Prev. day's open int 38,984 CORN S.000 bu. minimum; Dollars per bushel. May 316 3M'U 3 12' 3 1214 -03' Jul 3 20' 3 20' 3 18 3 18 -03 Sep 3 11' 3 12 3 10 3 104 01 Dec 3 03 3 05'4 3 01' 3 04 00' Mar 3 10V) 3 12V.

3 10 3 114 00 May 3 18 3 19' 3 17' 3 18 Jut 3 23 3 24' 3 221 3 22' -00' Prev. sales 37.941 Prev. day's open int 174.505. OATS 5,000 bu. minimum; Dollars per bushel.

May I.64V1 166' 163' 165'. 004 Jul I.49VJ 1 72 1 68 I 70' 01 Sep 1.77' 1 80 1 76 1 78 01' Dec 1.89 1 91' 1 88' 1 90' 02 Mar 1.99 3 01 1 99 2 00 01 Prev. sales 1,772. Prev. day's open int 8,459 SOYBEANS 5.000 bu.

minimum; Dollars per bushel. May 4 42 6 44 4 37 6 38 -044 Jul 6 40' 6 63 4 531 6 54' -05' Aug 4 65' 6 69' 6.61V. 6 61V. -05 Sep 6 71 6 75' 6 68 6 68 04 Nov 6 84 6 90 4 81 6 81' -05 V. Jan 6 97V, 7 02 6 94 6 94' 04 V.

Mar 7 10 7 15 7 07 7 07' -04' May 7 21 7 25' 7 18' 7 18' -04 Jul 7 31' 7 34' 7 28 7 28 04' Prev. sales 34.218 Prev. day's open Int, 97,139 livestock MILWAUKEE (AP) Tuesday's cattle market: choice steers 58.00-' 61.00; choice heifers 56 00-59 00, good to choice Holstein steers 49.00-58.00; standard steers 44.00-49.00; dairy heifers 47.1o-51.00; utility cows 44.00-47.00; canners and cut- ters 40.00-43.00; commercial bulls 50 Common bulls 47.00-! 49 00. Tueday's calf market: choice veal I 70.00-85.00; good veal 55 feeder bulls 70.00-85 00; replace- ment heifers 60.00-100.00. Tuesday's hog market: Light and 1 medium butchers 43.00-45.50; heavy i butchers 40.00-43.00; light and me-; dium sows 41.00-44 00; heavy sows 44 boars 39 00 and down.

Wednesday's estimated receipts: 500 cattle, 300 calves, 100 hogs and 30 lambs. Value Price Affiliated Fund 9 17 9 89 Century Shares Trust 13.14 L. Fidelity Fund 18 44 L. Investors Mutual .10 79 11 73 Investors Stock 20 61 22 41 Investors Variable Pay 10 36 11 27 Massachusetts Inv. Tr II 87 12 80 Massachusetts Growth 13 55 14 61 Newton 27 07 L.

Nicholas Fund 25 04 Selected Am. Shares 8 72 L. Wisconsin Inc 3 82 How devaluation works and what it is CHICAGO (API Wisconsin's egg market Tuesday was unsettled Supplies were light to adequate, demand was fair. Prices. Grade A large 67-70, medium 60-63 Dollar, gold LONDON (API Expectations of lower S.

interest rates sent the dollar downward on world currency markets today. Gold was little changed The expectations on interest rates were fueled Tuesday by a survey from Money Market Services inc ol Belmont, that found most experts looking for a decline in short-term rates by about a third of a point over the next three months. Also contributing to the dollar's decline was the rebound ol the British pound. After reaching an all-time low March 71 amid threats of an oil price war tailing oil prices would cut into Britain's North Sea revenue it began climbing when the state oil trading corporation announced a new price in line with OPEC's Today in London, sterling was quoted at $1 5095. compared with 11 5040 late Tuesday In Tokyo, where trading ends before Europe's business day gets under way.

the dollar fell to a closing 237 25 yen Irom 238 60 Tuesday Later in London, the dollar was quoted at 237.13 yen Other dollar rates in Europe at mid-morning, compared with late Tuesday -2 4095 West German marks, down from 2 4200 -2 0481 Swiss francs, down from 2 067? -7 2255 French francs, down from 7 2 585 2 7130 Dutch guilders, down from 7 7270 1.434 2 5 Italian lire, down from 1.440.70 -I 2338 Canadian dollars, down from 1.2354 London's five bullion dealers fixed an indicative prlre of $428 40 an ounce for gold, compared with 1430 50 late Tuesday. In Zurich, the precious metal was quoted at $478 an ounce, compared with $426.75 the day before Earlier In Hong Kong, gold rose 112 76 to close at $427 15 in New York Tuesday, gold rose 11 30 to close at 1428 80 Silver bullion was traded In London at 111.75 an ounce, compared with 111.15 Tuesday. I By Robert Bums of The Associated Press NEW YORK It gets little notice elsewhere in America, but along the S. -Mexican border the "devaluation" of the peso can be a big attention grabber. At first glance, the idea of devaluing a currency may seem too obscure to matter (it's always happening in a foreign land), or too complicated to consider (who is devaluing But, in fact, the rushing stream of devaluations around the world can make a big difference in dollars and cents for millions of people in the United States.

Here are some questions and answers to help explain a currency devaluation and its effect on Americans: Q. What is a devaluation? A. When a group of El Paso, Texas, school kids was asked that recently, one said: "(It's) a kind of wine." To another it was "a ma.