The Salt Lake Tribune from Salt Lake City, Utah • 30

TT i uonoim Tr a. i I in I lummox 5 -V f- 1 4 (. Dollars Velocity Increasing Daily alt i'akr (Tribune 'Business Mine Market tigm anil dix ide it the mom the speed at which the the latest year IsHight goods take lhe Kilesi slipplx rhcxic gauging and (cuts axadabh and sen ices I mailer But he also points out that xelonty at-o giew lupidlx ex en when inteiest i utes were falling Oth' i east a is liu lude tlk groxx th ol i ndit (aid buy uig and the use of NOW accounts essentially conxentional i het king act ounts that pax inteiest All contribute to a reduction in the desire to hold tunds in checking accounts. Higgins says 0 hat docs this growth portend Monotaiy authoi itics like to win with ccitam i el.it ions in the economx that are stable enough ox ei time to at rant eotdidenc in then piedu tlons Wednesday October 4, 1978 Section Page 6 Housing Plans Get HUD Loan 1 he Lpisi opal Management Uorp has finalized an agi cement with the Department of Housing and ban Development lor a 6 million loan to build a loo unit. 10-story housing protect lot low income semoi citizens The proiect at b50-3rd East, will be i (instructed a' the site of the old Sumner School which was purchased loi 31 from the Salt Lake Uitx School Distnct bx the Salt Lake Redevelopment gency Bought Hall lhe Redevelopment Agency in min.

donaod I hi pioperty to the Salt Lake Housing Authontx and tin Episcopal (lunch ol Utah purchase'll halt ol it 'rum thccitx foi the price ot the administrative cost Ihc Housing Authontx is also buildm" 100 unit 1(1 stoiy high rise at the Sumner Sc hool site Uthough the two apartment buildings will lu separately managed. Ixith are being constructed under the same HUD program designed to proxidi low -income housing for senior citizens The fit loan is also lor $3 ti million Ground Broken Ground has been broken tor both complexes The architect for the Episcopal Church high-rise is John Pace ol Archilects-Planners Alliance. Inc Salt Lake City the contractor is Cannon Construction Co with Ted Schuett. oi Schuctt Co Denver, as construe turn consultant Christiansen Brothers Inc is the dexelopet lor the Salt Lake Housing Authority complex The Episcopal Management Corp is a non pro! it organization formed to develop and manage the which will lie named St Mark's Towel IICD Subsidies Both apartment houses will open ate under a III I) program subsidizing the tents el the low income dwellers the program, the residents will pax one qua ter ot then income as long as they meet certain federal requirements and the rest will be paid complex Uiulei By William (ilasiMlI Associated Press Wi NEW YORK (APi A group ol eionomists is sitting around a table, talking, ol corn sc ol money ll ol a sudden, the woid "velocity eomes up Are the economists thoughts turning away from dollars and eei ts and toward the skills ol Ron (Hindi on the pitcher mound oi Chris Exert on the tennis court' Noh still are talking alxiut money in this case alxiut xxhat happens to inonex cheeks and cash once pit red circulation The concept ol xeloeitx is a fan lx simple mu- et it an immiint loot Ini mnel.ii pole m.ii.ni 1 Here are some (piestions alxmt xeloi its and xxhx it is closely xxatched All right exactly xxhat is xeloeitx A Simply put. the word desi nix's hoxx last xoui money turns over once it leaxesyoui pocket In more precise language, its the ratio oi the gross national product all our spending on goods and services -to the nations money supply over a set period So far youve explained that xeloeitx a i ntio But xxhat does it mean' A When economists look at money, they xxant to know how much is around how much will it buy in a day.

month or year, and what this buying means to industry In other words, the concept of velocity describes the path ot money and how fast it traxels dow its road Can you trace a typical dollar's route A Lets start at the Federal Reserve, which puts the dollar in circulation That dollar goes into your salary check to pay for your sen ices ou then spend the dollar on eggs at the corner grocery store The grocer then spends your $1 on merchandise at his wholesaler The wholesa'er takes the dollar and buys $1 in goods from a manufacturer. In that time span, the single dollar actually bought $4 in goods and services Its velocity in the time it traxeled from Fed to you to manufacturer was expressed as a number, in this case 4 Can you look at the whole nation this way A That's exactly what economists do when they Mr. McKay Ms. Warner Mr. Christensen Area Business Tradewinds What is the i in rent xeloeitx figure A An in ding to the Federal Rcscixc Bank ol Kansas Citx the xeloeitx of Ml the total of easily spendable lash and checking account balances, is neat In utliei words, exeix dullai placed i it i illation tin its into almost in goods alia set a cs Win do miIh makctshki to keep an ex on till a tiguic The liguie is one wax ol lodging how growth in the money suppix max tic ti into growth ol thi cionoim Muth ol this ludgmment depends on measuimg lonsumcis dcsin to possess cash lathei than telex ision sets, cuts ui othci objects Tile weakei consume) buying sentiment is tile sloxxci money will turn oxer and the slower the xelocity Is thoie a trend in the xelocity ol money 9 A For more than it) years, velocity has been increasing steadily In 1950, tor instance, it stood at about 2 5 Since then, the rate of turnover has been rising with occasional dips during recessions But according to analyst Byron Higgins, writing in the Kansas City Feds 'Economic Review, the rapidity and duration of the most recent rise in xelocity ovei the past three years "has been except tonal Whats the reason behind the grow th A According to Higgins, one reason is steadily rising interest rates, which prompt consumers and corporate treasurers to hold less cash and lend out more or deposit funds in high-yielding savings accounts, putting more money into circulation But radical changes in the way Americans do business from corporations which invest then once-idle cash in loans that may last just oxernight to consumers who use credit cards and pay bills by tht push of a button may lorce economists to rewrite the rules A dollar (lumped into the econom.

may yield a sharply diflerent return of inflation income and employ ment than had been expected, as was the ease in 1974-1977 According to Higgins, if the xeloeitx of money cant be accurately gauged, analysts might unwittingly make policy errors that impair economic performance Fellow and was one ot six Utahns ap(ointecl to the governmental prog ram by Gox Scott Matheson She ill lx- responsible for contract administration, monitoring and evalua tion and will cixirdinate the Department of Social Services The Board of Trustees of United Businessmen's Insurance Trust announced a refund to all eligible employers who participated in group health coverages during 1970 The refund amounting to more than $7(1 (KKI, represents a favorable pre- mnim to claims ratio experienced during 197(5 E.F. Hutton will conduct a seminar on how to by HUD accumulate money on a guaranteed gap Uitx Finance Commissioner Jen, tings tax-deterred basis to provide income Jr said the city has also set aside alxnit lor retirement and other needs The $200,000 in redevelopment funds for some extra, on the city high-rise, such as balconies He said also that the city will const rui 1 a community center in the basement of its high Use which will be available to citizens in the neighlxir hood as well as to residents ot both complexes seminar will be held Thursday at 4 30 in the Junior Ballroom of Hotel Utah The Apartment Association of Utah is having a Trade Fair at the Hilton Inn 154 fiOOSoulh Thursday A dinner will also be offered Robert J. Casey has been appointed director oi sales and marketing for IMLs special commodities "Eagle Division He was formetly the Intermountain sales manager for the Eagle I)n ision Ted A. McKay has been named vice president lor business administration at Westminster College He was formetly affiliated with the University ol Utah, where he served as controller Allen Clii isleiiseii has been named general manager for Menlove Dodge Toyota Mr Christen' en is a native ol Magna He attended Utah State University and brings 23 years experience in automotive sales to his new position He has been in the sales department of Menlove Dodge Toyota since 1974 Lonie Warner formerly a loan originator for Sherwood Roberts, has been promoted to permanent loan department manager of the companys Salt Lake City office In her new position Ms Warner will supervise the processing, closing and warehousing of all permanent residential mortgage loans in the Salt Lake City office Elizabeth "Libby Hunter has been named administrative assistant to the director ot the Office of Community Operations of the Utah Department of Social Services She has served the past year as a State House Thursdays rate from PFS. al for $0 The trade fair is free Speakers Construction is scheduled tor completion near include Jerrold Davis, president of the the latter part of 1979 Salt Lake Board of Realtors, and James if'iT 'g'T-sg STRAPPED? PRUDENTIAL FEDERAL SAVINuS Wood, research analyst for the University of Utahs Bureau of Economies and Business Research MoneyMarket Savings Certificate Proposed Phone Charge Would Vary With User 8.627 (Effective 105 through 10 1 1) This is the Nations highest interest rate on short-term insured savings Highest rate paid on short-term savings insured by FSL1C and FDIC.

Six month term, $10,000 minimum deposit. Interest paid on certificates only when held to maturity. That sy stem would cost 61 for the average customer in Salt Lake City who. according to Mountain Beil studies, makes 177 telephone calls a month and talks for 4 05 minutes eaih call Less Than Now The rate, under the new system, is about $3 less a month than the average Salt Lake City customer is paying now at the set rate of $9 17 The coalition, through tho testimony of a Colorado mathematician. Ronald Binz, has proposed the telephone company charge $5 a month for the first 50 telephone calls, and so much for each call thereafter rsoc Provo Firm Aroused Of Fraudulent Claim The Utah Trade Commission has ordered a Iroxo company engaged solar energy sy stems to cease and desist certain practices the trade commission alleges are unfair methods o( competition commerce or trade In an order prepared by Assistant Utah Attorney General Michael Martinez the trade commission has ordered Solar Energy Sales and Service, Provo, to cease and desist from engaging in unfair methods of competition in violation of Section 13-2 11 (1), Utah Code namely Representing in any way that the company cun supply a product or materials that ill cool your home and your luel bill for heating and cooling will run less than $2 a month.

unless and until such time that it is shown by business records and or reliable existing test data to the satisfaction of the Utah Trade Commission that such is true Representing in any way that the above named company can supply solar heating and cooling units in the quantity necessary to supply all existing and anticipated dealers of such products unless it can he show that sue is true Selling any franchise'-, dealerships, agencies oi othci outlets for the company's solar products unless and until it can lie shown by appropriate business records and or reliable existing test data that the claims ol $2 heating and cooling bills arc true Th ordoi is an administrative order winch the company can answer If the company continues the alleged practices before an agreement is rt-ac bed if the trade commission the state agency can go to court on contempt grounds and seek a restraining ordei according to Mr Martinez But-ii ioji Seminar SlaHI senes ol eight management seminars for small business leaders will be offered by the University ot Utah College of Business beginning Thursday Full her information can he obtained I mm the Oil icc of Small Business Development in the College of Business Prudential Federal Savings Personal Financial Service 1 1 5 South Mam Street 1 07 East 33rd South 2286 East 2 1 00 South 3600 South 2700 West 6890 South Highland Drive Salt Lake City Utah Phone 487 4577 Mountain Bell proposed to the Utah Public Service Commission Tuesday a new rate structure that would base charges on the usage of each customer The Coalition of Senior Citizens, however, opposed the proposal as too oxiK'iisixe and too complicated The coalition presented its own Measured Serx ice proposal to the commission Base Rate Plus Stephen Samansky, Mountain Bells corporate rate and tariff manager, proposed a rate structure with a $3 80 por-monlh base rate for everyone Then, he said, the customer would bo charged per call, depending on the length, distance and time of day the call is made Gauges on distance, foi example, would be imposed in increments zero to 10 miles, 11-16 miles, up to 41-45 miles First Minute The first minute of the call, depend ing on the distance, would range from 5 to 11 cents and each minute thereafter would range from 1 to .5 cents If the call is made at off-peak times, like holidays, weekends and nights the caller would get a discount, such as long-distance calls get now. A Vintage Yrar For Bordeaux? BORDEAUX. France This year Bordeaux wines may be the finest since 1902. generally regarded as a classic intage, according to me producers They said excellent weather lust before the grape harvest looked like it would help provide a vintage ol exeep tional quality. SONY A SANYO GIANT TV arid STEREO DIAMONDS DIAMONDS DIAMONDS FOR INVESTMENT Through our worldwide association, we can offer you I.

A. certified diamonds at the lowest dealer prices. All our investment Diamonds and color gems are gemological institute of america certified and guaranteed as to color ond clarity. UTAH WOOLEN Come See Us! WEVE MOVED TO: 59 West South Tempie ACROSS THE STREET FROM THE TEMPLE ON ALL MODELS STEREOS and mUt Horn1 vanaty ti tumtaftlat JERED DIAMOND DIVISION 801-364-7193 Cim hi cart wt racaivara. ipaaiMKt, eaititu tfacHi ate MtED a BUILDING? OFFICE SPACE WAREHOUSE MFG.

PLANTS CAPITOL INOUSTBItS, INC 801-486-8409 leaf or Sell Home entertainment system with stereo cassette recorderpiayer, AMFM stereo receiver and 3-speed record changer HAYES BROS. The Best Bargains WANT ADS! 2280 So. Stato Whoro you'd tend a friend ATARI GAME Video Computer System VIDEO TAPE RECORDER $79995 a SREAKOUT SLOT RACERS HOME RUN BASKETBALL HUNT SCORE HANGMAN OUTLAW STREET RACER W0Y5OO VIDEO OLYMi ICS AIRSEA BATTLE COMBAT SPACE MISSION GAMES OF CHOICE MATH SUKKOUND i $189.09 a month gets you $8,500 You can borrow $3 500 on your home equity for only $189 09 a month at Peoples First Thrift, and you can borrow it for any purpose Call us for the money you need large or smui! we wont keep you waiting Monthly payment based on a $8 500 loan to 72 months at an annual percc tage rate of 1 7n Total payment $13 614 48 HOME EQUITY LOAN SPECIALISTS PEOPLES li'ITHRIFT Savlngs-Loans Peoples helping people since 1924 Salt lafc Ciy Utah So jf SUHh hiw' 16 1 rtHH 1 Soul' 4HK 1 I Midvala Utah 2 Ft On on cl hi 1 Pi 8.627 9.008 II I 1 lluliw I 111 It'll Del 1 I A 1M PANASONIC SONY SANYO RCA ZENITH i sy. p. ff FIRST FEDERAL SAVINGS SALT LAKE 675 South State 531-0222 MIDVALE 6885 So State 566-4663 OGDEN 2959 Washington Blvd C2 1-8900 PROVO 446 North 2nd West 375-2000 I i We lead the way (FYdSlin UrjilH I tlHfs d(sn rr Hip qn.il I ,1 a LZ A itjrp quipnt xHlly If vjD I ij ttmitlmitiiMiiiingi MiiT ifi, i new n.

nli.il.m tjtmttn.