Alton Evening Telegraph from Alton, Illinois on January 9, 1971 · Page 6
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Alton Evening Telegraph from Alton, Illinois · Page 6

Alton, Illinois
Issue Date:
Saturday, January 9, 1971
Page 6
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Altai Evening Telegraph Saturday, January 9, 1971 New year gets off to great economic start NEW YORK (AP) — The first full week of the new year was marked by further easing of interest rates and a presidential promise that, economically, things would be better in 1971. The statistical tally for 1970 was none too encouraging, observers noted. Prices continued to club at a rate of almost 5 per cent, providing no relief from the 5.4 per cent cost of living rise of 1909. At the same time, an additional 2 million Americans went on the unemployment rolls. Unemployment fnr the year was put at an estimated 4.9 per cent. Furthermore, officials said that even though the gross national product broke through the trillion-dollar mark in 1070, the gains were afl inflationary. They predicted the real gross national product would show no actual growth for the first year since 1958. In a televised interview this week, President Nixon predicted that 1971 would be a good year and 1072 "a very good year." He again emphasized that his "activist economic policy" would control inflation while expanding the economy to reduce unemployment. But ha declined to predict how quickly full employment could be reconciled with price stability. An expansionary budget policy operating at a deficit would be one hallmark of his new approach, he said, combined with an expansionary monetary policy on the part of the Federal Reserve Board to "meet the needs of an expanding economy." Officials now set the budget deficit for the current fiscal year at about $17 billion. He rejected the idea of wage and price controls or even guidelines, saying: "None of them at this time would work.." In analyzing the interview, economic experts said the President had good reason to be cautious in projecting how quickly inflation would subside and unemployment turn down. One economist, said the President's hoped-for goal of an unemployment rate of 4 per cent by the end of 1972, a presidential election year, would mean wage increases of 7 per cent and price rises of 4% per cent— only slightly lower than the present rate of inflation. The Federal Reserve Bank of St. Louis was less optimistic in its forecast. It Indiqated that if moderately expansive monetary and fiscal policies are pursued this year, unemployment will still be at about a 6 per cent rate at the end of 1971 and Inflation only slightly lower* than Its recent 5 per cent rate. the ex- on One analyst went further in his interpretation by saying the President's emphasis on decreasing unemployment by the end of 1972 means he is opting for full employment at the expense of price stability. The reason being, he added, thai politically unemployment is a more explosive issue than inflation and 1972 will be a presidential election year. As an indication of emphasis on monetary pansion, interest rates business and consumer loans declined this week. First Pennsylvania Banking & Trust Co. led the way by dropping its prime rate from fi-y, per cent to fi'/fc per cent. The prime rate is the interest a bank charges its best, corporate customers. A few days later Chemical Bank of New York, the nation's sixth largest bank, also lowered its prime rate and other banks quickly followed suit. This was the sixth prime rate cut in less than a year and brought the minimum charge on corporate loans down from a record 8'/£ per cent early last year to its lowest level in more than two years. Many bankers indicated that the latest cut signaled an end lo the recent swift decline in their interest rates. But many observers said the cu! made even more likely a similar i/ r point reduction in the Federal Reserve Board's 5i£ per cent, discount rate. Hydrogen bomb probe promised CHICAGO '(AP) •- An official inquiry to determine if a hydrogen bomb was aboard the B-r>2 bomber that crashed into Lake Michigan near Charlevoix, Mich., has been promised by two Democratic congressmen from Chicago. Officials say the plane, on a training mission, was not armed. It crashed into the lake Thursday night with nine men aboard. The crew is still missing. The two congressmen are Reps. Roman C. Piicinski nad Abner Mikva. Mikva said that the Defense Department first denied that there wove H-bombs aboard a B-!>2 that crashed off Spain in 1900. The department later admitted there were four such bombs aboard. "We do know that SAC (the Strategic Air Command) has practice flights with H-bombs aboard them," Piicinski said. "And we've had a couple of in i 1 s h a p s involving B-f>2s carrying H-bombs." Faculty fete will benefit scholar fund A dancing party, in celebration of the end of the first semester, is being sponsored by the Faculty Service Club from 9:30 to 11:30 p.m. Friday (Jan. 15) for students of the East Alton- Wood River High School and their guests. Engaged to furnish music for the annual event which will be staged in the Wood River Roundhouse Social Center, is "The Inside Track" popular rock and roll combo. Proceeds of the evening will be used toward scholarships to be awarded to a select number of spring graduates who have made outstanding contributions to the school, scholastically, ethically, and who have contributed the most to education in the eyes of the faculty. The Faculty Service Club, a non-profit organization, has divided a total of $1,000 as a cash award lo three outstanding seniors for a number of years and the same goal has been set by the club for the 'no strings attached' gifts this year, according to the official staff: Tom Fearno, president; Nancy Duncan, Vice president; Floyd Dean, 1, r o a s u r c r ; and Edith Davidson, secretary. Tickets for the Friday parly may be purchased from any Faculty Service Club member or at the door the evening of the dance. California river may */ escape (lain Is she or isn't she? Tricia Nixon, who paid » surprise visit to Catalina Inland today with President Nixon, was showing off • large ring on the ring-linger of her left hand. When Hiked by newsmen If it was an engagement ring she had no egpinent. (AP Wirephoto) SACRAMENTO, Calif. (AP) — The last of California's r u g g o d mountain-coastal rivers may not be dammed to supply city and farm water systems after all, because population growth is slowing down in the Golden Slate. I n the last decade, California has butll 18 dams and reservoirs, IS pumping plants and 580 miles of canals and tunnels designed to take 4.2 million acre feet of water a year from the sparcoly populated northern end of the state to the. agricultural valleys and cities of the dry south. But with that $2.1)4 billion system now 1)1! per cent completed or under construction, the stale Water Resources Department is drastically revising ils future population estimates downward because of a lower birth rate and slower migration to the slate. A forecast of a If) million population increase, !o H5 million, in the next 20 years has been trimmed to 9 million. A 50-year estimate! of 1)4 million more people lias been cut to 2. r > million. S | a I e Water Director William R. Cianclli says that doesn't mean the projects already under way aren't needed, but in an annual report filed Friday he acknowledged "easing pressures" for projects on California's remaining wild rivers. R e v e r sing an earlier position, (iianelli—a chief target of California con- KiTvatioiii.SiS—-iler'aivd there are no plans "at this time" to clam Hie Kiaiiialh River on the stale's north coast. « Blast scene Baltimore firemen clear debris from the ruins of three homes destroyed by an explosion Friday. Two small children were killed and an elderly man Is missing. Three persons were injured, including one critically. A four-alarm fire resulted from the blast. Over 100 firemen responded. It took them about one hour to get the fire under control. (AP Wirephoto) • Room Additions • Aluminum Siding • Estimating Servict for Fir* Losses Y. G. GUCCIONE GENERAL CONTRACTOR ALTON—465-3472 For the information of— CITIZENS OF THE AITON AREA As you know, production and maintenance employees of Alton Box Board Company's Alton paperboard mill have been on strike against the Company since August 20,1970. Following is a copy of a letter we have sent to these employees and their wives: "The strike by UPP, Locals 975 and 976, against your company is now more than 4* monhs old. We regret thai you, like so many others, have been without a regular income and no settlement is in sight. Our last offer, which exceeds the hourly rate now earned by employees doing similar work in the paper industry, was both fair and reasonable. The benefits provided by your company continue to be among the best in our business. Although a strike is unpleasant, it makes little sense to agree to a union contract that will eventually do away with all jobs because we are unable to sell our product at competitive prices. The purpose of this letter is to bring you up to date on recent events and plans for your company. Number 4 machine is in full operation, seven days a week, with supervisory and new personnel. As you know, the latest report shows about ten percent (10%) of the working people living in the Alton area are unemployed and many are eager to work to support their families. Our plan is to start additional opera- tions in the mill as soon as possible using supervisory and additional employees. The friendship we feel for the men of our company has not changed because the DPP and its Locals 975 and 976 called a strike. We believe the employees associated with our Alton Mill are the finest in the in- ^ ilustry. Our doors have not been closed to them in the past and they are not closed now. Alton Box Board Company will employ any qualified person on the basis of the last proposal made to the union." ALTON BOX BOARD COMPANY Alton, Illinois

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