The Evening Sun from Baltimore, Maryland • 35

THE EVENING SUN DECEMBER 1, 1982 CI Deck the malls: The early returns look promising i 4 vl ji, ji a 1 If inventories, and they expect a late season the last two years have been -late. But last year we had a strong finish, and the decline in the rate of inflation and the tax cuts are positives this year." Area shoppers may find early and heavy sales promotional activity at stores around Baltimore, McNeal says, "especially since Stewart's announced they are going to close." Four Stewart Co. units will be transformed next year into Caldor discont stores by parent corporation Associated Dry Goods, While waiting for the final word on when the changeover will take place, Stewart's has engaged in a non-stop round of promotional sales, leaving other local merchants hustling to compete. "We had an excellent weekend," says Irene Thomsen, Stewart's vice president and director of advertising. "People were not just looking, they were buying and usually this is a harbinger of things to come." Shoppers are buying merchandise "across the board" in medium price See CHRISTMAS, CIO, Col.

1 By Lilah Lohr Evening Sun Staff Fortified by Thanksgiving feasts and graced with Sunday store openings, Baltimore shoppers marched on malls last weekend to start the annual holiday gift-buying season. Most area retailers report jingling cash register bells, but it's still too early to tell if the much-heralded consumer demand has finally been unleashed, signalling brighter days for the economy. If consumers aren't confident enought to spend their money "it has an enormous ripple effect on the rest of the economy," explains Edward McNeal, executive vice president of the Maryland Retail Merchants Association. "Nothing happens until somebody buys something. And more than 25 percent of retail volume and an even higher percentage of profits for the year) are directly related to the next four weeks." "I think there are a lot of concerns, there are negatives on the horizon but there are positives as well," he adds.

"Most retailers have prepared conservatively with their Holiday shoppers crowd the upper By Lloyd Pearson Evening Sun Staff level of White Marsh Mall last Sunday. Watch out for bank offers bearing gifts Beware of banks bearing gifts, especially promotions that substitute merchandise for cash interest. The attractive TV or microwave oven may obscure the fact that the actual return on your investment is quite small less than the rate from a certificate of deposit or money-market fund, for example. Such is the case in one offer advertised by Equitable Bank. "Lend us your money for five, 11 or 18 months and we'll give you a great premium," says the bank ad, which lists TVs, a microwave oven, video cassette recorder or Atari game but no cash interest.

All the customer must do is hand over from $1,500 to $29,500. (This promotion differs from another advertised this week by Equitable. In the second promotion, the bank offers a larger variety of merchandise including a piano Airlines match $99 Florida fare New York Times NEW YORK Four major airlines announced that they would match, at least partially, Pan American World Airway's new $99 one-way fare on the Florida route, expanding a price war that has already reduced transcontinental fares. Spokesmen for Delta, Eastern, Trans World Airlines and Air Florida said that they were making the price cuts reluctantly. They noted that bookings had been better this year than in 1981 in most markets and that the lower fares would not attract enough additional travelers to cover costs.

"It is a fare cut that makes no economic sense whatsoever," said Jerry Cosley, a TWA spokesman, "It is part of the pain and turmoil of a troubled industry in its struggle for survival." Most of the carriers did not match Pan Am in each of the markets for which it announced fare cuts on Monday, but did reduce fares for those routes where Pan Am has a major presence, such as the New York-to-Florida corridor. The latest cuts are also much more limited than last year when Delta set off a protracted fare war at the height of the Christmas season. The Atlanta-based airline eventually reduced the one-way fare between New York and Florida points to $77 one way, and cut fares between most major cities in the Northeast and Middle West and Florida. The move by Pan Am on Monday limited the availability of the $99 fare to between Dec. 1 and Dec.

15 and Jan. 10 to Feb. 6, thus excluding the peak holiday travel season. It also restricted thecuts to travel from ihe three New York area airports mainly to points in Florida, Texas and uch major cities as Chicago, Detroit and Cleveland in the Middle West and Los Angeles and San Franciso on the West Coast. WBFF won't join pay-TV business Though Channel 45 has gotten federal permission, don't look for it to join Channel 54 in the pay-TV business.

Seems this town's not big enough for two subscription television stations. Channel 45 (WBFF) made a bid nearly two years ago to offer the area's first pay-TV programming, but competitor Channel 54 (WNUV) challenged 45's Federal Communications Commission license petition. The challenge, made on technical grounds, left 45 enmeshed in FCC procedures while 54 successfuly applied for its own license and began broadcasting Super TV subscription programming. Last summer Julian S. Smith, president of Channel 45's licensee Chesapeake Television said he doubted his station, would go ahead with pay-TV plans even if it got FCC permission because there weren't enough Baltimore viewers to support two such stations.

Later in the summer, 45 let its pay-TV agreement with a California programming service expire. Yesterday when Smith received a letter from the FCC granting 45's license, he indicated little interest in reviving the pay-TV plans. "We haven't really decided whether to go ahead with it," he said. Cable movie company formed NEW YORK (AP) -Columbia Pictures Industries CBS Inc. and Home Box Office Inc.

have jointly announced plans to form a new company to produce and distribute movies. The companies said they would share equally the cost of financing the new company, which has not been named. The partners also said they would use a line of credit that has been negotiated with certain commerical banks that were not named. In their announcement the companies did not estimate the cost of the new venture. Under terms of the joint agreement, the management of the studio will be separate from the managements of the three parent companies and will report to a committee representing the owners.

Visa drops money fund plan SAN FRANCISCO (AP)-Visa USA has announced that it has dropped plans to offer a money market fund, saying federal approval of local bank money funds has eliminated the need for it. "What the Visa Money Fund concept represented was a way to help return money to small financial institutions, community financial institutions which for the most part have seen a great deal of their savings go into the money market funds," said David Branco-li, administrator of public relations for Visa USA, based in San Francisco. Those money funds, in turn, invested the bulk of their more than $220 billion in assets in a handful of money-center banks. The result was a massive shift of money from small banks to large, urban ones. Charles T.

Russell, president of Visa USA, said the Visa plan isn't needed any more because Congress and the federal Depository Institutions Deregulation Committee recently decided to let banks and other institutions compete with the money market funds, offering accounts with a minimum deposit of $2,500. Visa is owned by the banks which offer its credit cards, travelers checks and other services. Inside Today PARDON MY BYTE: Today's computer generation, with a language all its own, is boring, says Michael Hirten. Baltimore Exchange: Page C2 SOCIAL SECURITY: Is the program going bankrupt? "Bunk, balderdash and outright lies," says Sylvia Porter. It's Your Money: Page C4 WHAT'S UP: Programs including everything from seminars on the bond market to planning a new careers are slated in the Baltimore area.

Find out if something going on is right for you. Calendar: Page Cll investing in certificates of deposit and money market funds. Even some checking accounts pay more than 6 percent. The difference in interest rates can amount to several hundred dollars. For example, Equitable offers the choice of a Sony or RCA color TV, or Zenith video cassette recorder, to investors putting up $7,000 for 18 months, $11,500 for 11 months or $29,500 for five months.

The particular Sony model can be purchased at a local discount house for $600. By contrast, investing $29,500 for five months at just 8 percent would earn $983 a $383 difference. The bank might argue that its promotion offers customers a chance to collect their interest in advance See CONSUMER, C10, Col. 1 1 r.ct to buy? It's Your Money John Fairhall customers depositing $3,000 for 12 months, the customer is getting the equivalent of $300 interest (in advance), or an annual yield of 10 percent. Equitable's offer provides yields in the 5 to 6 percent range.

That's what's paid on passbook savings the lowest rate of return available. By contrast, customers with the amount of money Equitable requires could get 8 to 10 percent returns by Vo buy ash, fripr Are diamonds a forever investment? and 10.09 percent interest, to customers willing to invest their money for four years.) Ads for the first promotion show that customers can getthe most expensive merchandise, or "premium," by investing the larger sums of money for the longer periods. But what the ads don't show is even more important. The ads don't list the value of the products or equivalent interest rates crucial information customers need to determine whether to invest their funds. Customers who call the bank can learn the product's estimated value, but they won't be told how that translates into an interest rate.

So the smart investor must do two things call merchants to find out the lowest prices of the same products, then compute the equivalent rate. If the bank is offering a $300 TV to whether they want the best for the money or the biggest," says David Greenberg, vice president of 32 year-old Greenberg Jewelers on Ritchie Highway. "There's a trade-off: do you want a top-notch diamond to lock forever in a bank vault or do you want diamonds to wear?" To avoid being left with a box of glittery rocks buy from only reputable established businesses. Chances are you will not be selling the jewelry for some time to come and 25 years is too late to learn that the stones are not what was expected. "If you're thinking of investment potential, spend the most money on the stones and the least on craftsmanship at the bottom line what you're selling is stones and the weight of the metal," advises Greenberg.

An exception is designer-pieces signed by a master craftsman or house. For example the value of a turn-of-the-century Tiffany-signed watch is enhanced by the signature. Bruce P. Levinson, an appraiser for Alex Cooper auctioneers, recommends buying antique or vintage jewelry at auction as one way to acquire quality jewelry without any retail mark-up. Levinson says that English and American antique jewelry, especially from the 19th century, is very collectable.

He also recommends Art Deco jewelry. "Antique jewelry is almost impossible to replace because the settings were made by hand," stresses Levinson. See DIAMONDS, 1 By Sherrie Clinton Evening Sun Staff If diamonds are your girl's best friend, can they also be your best investment? Consider for a moment that a diamond that sold for $1,000 in 1949 would be worth more than $10,900 today a 991 percent increase in 33 years, according to the Diamond Registry, a diamond industry newletter. Impressive? Sure, but before you decide to swap you money market account for a diamond necklace be aware that investing in diamonds is a very risky business. "Diamonds, like fine paintings or antiques, can be enjoyed while providing a hedge against inflation," says Susan Eckart, a gemologist for Oscar Caplan Sons Baltimore jewelers for 77 years.

"The value of the stones may appreciate in value but the primary reason to buy diamonds is because you like them." De Beers, which controls the most newly-mined diamonds in the world, refuses to discuss "investment" potential. "We stress the beauty and pleasure of owning and wearing beautiful jewelry, never resell value," says a company representative. And in fact, the diamonds found in jewelry are not, strictly speaking, investment quality. Joseph Schlussel, publisher of the Diamond says that speculators buy only the very best diamonds, known in the industry as and promptly lock them in a safe deposit box. "Individuals have to decide Rate watch Jewelry diamonds Appreciation of a $1,000 diamond purchased January, 1 949.

Jan. 1949 $1,000 May 1960 1,669 Aug. 1966 2,072 Nov. 1971 2,704 Sept. 1972 3,021 Aug.

1973 4,350 Dec. 1974 4,415 Jan. 1975 4,548 Oct. 1976 4,809 Dec. 1977 6,471 Aug.

1978 8,412 Sept. 1979 9,506 Feb. 1980 10,647 Oct. 1982 10,913 Source: Diamond Registry Investment diamonds Price for a one-caraf D-flawless stone 1970 $1,600 1971 1,625 1972 1,975 1973 2,950 1974 4,300 1975 4,950 1976 7,000 1977 11,000 1978 22,500 1979 23,000 1980 62,000 1981 27,000 1982 (est.) 19,000 Source: Diamond Resislry Dow averages Index American Exchange Calendar Investing Mutual fundf 8 1 1 4 9 Names faces 3 N.Y. Exchange C6 Over-the-counter 9 Real estate 1 1 Prime rate 1 1.5 3 month T-bills 8.280 6-month T-bills 8.511 6-month certificate 9.00 Passbook savings rate .....5.5 London gold $444.25 London $10.17 .12 Mortgages( 1 0 dn) 13-16 Money fund average 8.60 2 p.m.

30 Indust. 1044.61 up 20 Tramp. .449. 12 up 15 15.26 dn 65 StockA.406.99 op 5.33 0.83 2.11 1 1.