Arizona Republic from Phoenix, Arizona on April 5, 1969 · Page 59
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Arizona Republic from Phoenix, Arizona · Page 59

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Phoenix, Arizona
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Saturday, April 5, 1969
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Page 59
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•.,. t^ cir dc .r UOL Phoenix, Sat., April 5, 1969 Campbell Let's take stock I Margin increase >* "" coming up next? By DON G. CAMPBELL . Business and Financial Editor ft? * That splintering sound you hear in the background can be ~ explained in terms of the millions of fond hopes that are now * being dashed to bits on the rocks of reality. The fond hopes, that is, have to do with the formerly prevalent notion that the Nixon administration didn't really intend to slam down on the inflationary brakes to the extent that anyone was really going to get hurt. And, despite considerable jawboning on the subject of how necessary it was to stop the erosion of the dollar, it did, indeed, seem that the new President and his advisers were adhering to a policy of "gradualism" —clamping down gently on the money supply in the hope that a light, but persistent, pressure on it would bring about an orderly retrenchment without any real hardships. But as the value, of the dollar has continued to recede, as industry has continued to announce massive expansion programs, as consumers have continued to spend with reckless disregard for the consequences, as our balance of trade .has continued to worsen, and as stock market speculation has continued to spiral, the uneasy feeling has risen that "gradualism" was for the birds and that, sooner or later, the brakes were going to have to be thrown on with a venge- ;ance regardless of the consequences. * THE ANTICIPATED change in policy came recently with Ithe increase in the prime rate to IVz per cent—the interest ;rate that large banks levy against their A-l customers, and •the "floor" above which all other consumer interest rates ^must rise. The minute this happened it became apparent * that the next step would be an increase in the discount rate— " ; the interest rate that Federal Reserve banks charge com; mercial banks which are dependent on them. Even with the ^increase in the prime rate it became pretty apparent that «the highly touted anti-inflationary drive was entering a new, 'serious phase and that "gradualism" had been scrapped. t \ This past week, not unexpectedly, the discount rate was, •indeed, raised and its significance was further underlined Iby an additional move that HADN'T been anticipated—an in,'crease in the reserve requirements that banks must main- •tain. In at least one respect this unexpected move is destined -to have a perhaps more immediate effect on the availability lot money than the increase in the interest rates will. Any '.increase in the prime rate, that is, may take weeks to sift down to the consumer, but an increase in bank reserve requirements is effective at once. (Hypothetically, that is, a bank on Monday may be permitted to take in $1,000 in deposits, hold $100 of this in its reserves and immediately lend out the remaining $900. But an ..increase in the reserve requirements can mean that, on Tuesday, the bank takes in $1,000 and can lend out only $850 of it—the fastest way known, outside of a stickup, to take an extra $50 out of circulation.) NOW, WHAT ELSE is left in the way of slapping on money controls? The most obvious omission, to date, has been the Federal Reserve Board's strange reluctance to increase the margin requirement for stock market transactions. It's strange because juggling the basis on which stocks can be bought "on margin"—on credit, that is—has become a time- honored method of encouraging, or discouraging, stock market participation. And, if nothing else, the past year has been characterized by an almost slap-happy overindulgence in buying stocks for purely speculative purposes. And yet, since 1963 (when the margin required was raised from 50 per cent) this "down"payment" provision stood at 70 per cent until last fall when It was raised to 80 per cent. With proper broker-credit, that is, it is possible to deposit $8,000 in cash or negotiable securities with your broker who then adds $2,000 to the kitty and buys $10,000 worth of stock in your name—charging you, of course, appropriate interest -on the $2,000 he has loaned you. *, ONE OF THE LESSONS learned the hard way in the 1929 -market crash was that the higher you raise the margin re- Iquirements the more crap shooters you keep out of the mar- ;ket and, not unnaturally, the more crap shooters you keep out of the market the healthier it is for all concerned. In 4929, for instance, it was possible to buy $10,000 worth of .stock by depositing only $1,000 with your broker—a fair explanation of why so many brokers and margin customers alike got wiped out when stocks suddenly lost 40, 50, 60 and «ven 90 per cent of their market value in a few week's. i, • 1 Over the years, then, juggling the margin requirements has been used to encourage stock market participation (it stood at 40 per cent from 1937 to 1945); to discourage speculation entirely (100 per cent right after World War II); or to discourage it almost to the point of abandonment (up to 90 per cent in the big bull market of 1958). Thus, the arguments are compelling that in today's overly speculative market atmosphere, and against the background of the government's desire to dampen down all monetary excesses, an increase in margin requirements to 90 or 100 per cent is the next logical step. Livestock market Shell posts increase for crude HOUSTON (AP) - Shell Oil Co. made public yesterday adjusted crude oil posted prices from 1 to 10 cents a barrel in nine states. The new upward adjustments include 10 cents a barrel for west Texas and New Mexico intermediate sweet crude, for the Texas and Louisiana coast areas, Oklahoma sweet, the Four Corners area of New Mexico, Arizona, Utah and Colorado, the southwest Texas area, and the Clam Field in Texas. Oklahoma sour prices were increased 5 cents a barrel. Sour prices in west Texas, Montana and North Dakota were increased 1 cent a barrel, as was the Bryans Mill Field in Texas. The Shell announcement said the new increases were made to make the prices competitive with prices paid by other purchasers in the affected areas. service, PHOENIX — Demand for slaughter cattle "lowed some although good early; late trade however saw .buyers turn bear- In and not too aggressive although feed& contlnu*! to receive fairy good n- quhrvTdaughter steers mostly steady. Instances weak: slaughter heifers steady to strong; slaughter calves steady. Contracting of slaughter, cattle, for future delivery again, prevailed with near 70 Mr cent of sa es for May through August. Arizona packers the more aggressive with West Coast buyers receiving only 17 per cent of sales. Feeder cattle In good demand, fully steady. Confirmed sales Included 13,100 slaughter steers, 500 slaughter heifers, and 680 slaughter calves compared wlrti 12,000 • 200 - 1,350 last week and 7,850 -135-0 tarn* week year ago. Sheep: zero; othlng on offer. CHICAGO closed steai fo^OoWs-. DENVER (AP-USDA)-Hogs 200; barrows and silts steady to strong; U.S. 3-4 2»lbs 20.25; 4 A 302.lbs 18.85; sows scarce. For the week AA barrows and gilts 50-75 lower; sows 25-50 lower. ttie none. -— none. KAN CITY (AP)-Cattle 200; calves 0<fer . HOM.,2. IP' , (AP) - Butcher ho» prices ly, to 25 cents lower at the ockvards Friday. Receipts Mixed 1-2 butchers weighing 195 to 230 at 21.50 to 22.00 and l-3s nds brought 21.00 nds sol V9 l 9 , h !P, fl I to 21.50 whi range sold at ------ B B to 256 pound . .00. Mixed 1-3 pounds went at Exchanges closed The nation's stock exchanges were closed yesterday in observance of Good Friday. Most commodity and other markets also were closed. Bell Telephone gain predicted NEW YORK (AP) - A gain of between 9 and 10 per cent in American Telephone & Telegraph Co. revenues and an approximately 6 per cent increase in earnings over the next five years was forecast by Argus Research Corp. Argus said it was optimistic about effects on AT&T of the general investigation of the telephone system by the Federal Communications Commission. "While the FCC's general investigation is now 3 J /s years old, and is still continuing, we do not expect it to result in further substantial rate reductions for the Bell System," the research concern said. ers" realized' 29.W"ro "SOW. There were not enough sheep of any one class on hand for an adequate test of tne market. Spot metals NEW YORK (AP) - Spot metal Prices. Friday poppe.rv its a .i cen . a p»ui pound, ounce, V YORK (AP) — Spot nonferrous prices Friday: coppeKjttAi"cents jnd, Connecticut' valley. Tead \i a pound, New York. Jlnc 14 cants md. East St. ^Lpuls,* Tin W a ounce, New York. STIv ounce, . New,, York. nominal per flask, New Japan approves production plan TOKYO (AP) - The Japanese government yesterday approved a U.S.-Japan joint venture to produce automatic automobile transmissions in Japan. The government step followed approval the same day by the Foreign Investment Council, an advisory organ to the finance minister, of the joint venture between Borg- Warner Corp. ot Chicago and Aisinseiki Co., a subsidiary of Japan's largest auto maker, Toyota Motor Co. Business news in brief Japan Bank won't raise lending rate TOKYO (AP) - The Bank of Japan doesn't plan any immediate change in its monetary policy despite the increase in the U.S. discount rate and the increase in U.S. bank reserve requirements, officials of the central bank said today. The U.S. rate adjustment, which raised the discount rate to 6 per cent per year from 5.5 per cent, brought the key U.S. rate to a higher level than the Japanese central bank rate for the first time since World War II, the officials said. Japan's discount rate has been 5.84 per cent per year since Aug. 7 when it was lowered to that level from 6.205 per cent. Valley National names assistant vice presidents The Valley National Bank has announced naming to assistant vice presidents of David S. Hancock, assistant manager of the dealer finance division; Roy J. Johnson, a credit administrator in the home office; and Walter H. Schwiebert of data services. Rogers Corporation engineer selected Robert F. Lee has been appointed manufacturing engineer for the Rogers Corp.'s Chandler Division. He previously was associated with Boeing Airplane Co. in Renton, Wash. Grover Hughes retires at Arizona Public Service Grover Hughes, Phoenix, has retired after 40 years at Arizona Public Service Co. He was supervisor of substation construction. Southwest Savings names 3 secretaries Southwest Savings and Loan Association has announced the promotions of Mrs. Gleam Twedell, Mrs. Betty Laine and Mrs. Martha W. Phillips to assistant secretaries. All are assistant managers of offices of the firm. GE department names two General Electric's information services department has announced the appointments of Chris H. Pinson to consulting specialist-computer services, and Richard E. Kalferd to manager of systems design and programming. .Instrumentation Service specialist named Lloyd A. Alexander has been appointed as specialist- instrumentation and compo- Foreign exchange .,_.. ._ Exchange In dollars and decimals of a dollar. Fri. Tnyrs. NEW YORK .(API-Foreign, ollai Canada in NY (free) Britain (pound) 30-dav 60-day 90-day Australia (dollar) Belgium (franc) Denmark (krone) France (franc) Holland (aullder) Italy (lira) Norway (krone) Portugal (escudo) Sweden (krona) Switzerland (franc) (free) West Germany (mark) Argentina (peso) (free) Brazil (cruzeiro) (free) .9290 Mexico (peso) Venezuela (bolivar) Hong Kong (dollar) I ivna r»wti» *i Japan (yen) 1.1170 .01987 .1333 .2018 .2753 .00160 .1401 .0352 .1936 .2314 .2486 .0029 .2530 ]l .9284 2.3950 2.3905 2.3840 2.3790 1.1175 .01986 .1333 .2017 .2753 .00159 .1401 .2315 .2486 .0029 :ol? .2230 .1650 .1650 100279 .00279 Butter and eggs CHICAGO (AP-USDA)—Butter: wholesale selling prices on all grades un- qu logs: prices paid delivered to Chicago Vi Tower to 1 higher; 80 per cent or better grade A whites 4S-47; medium white extras 40V2-42; standards 38-38'/a. Legal Advertising NOTICE OF HEARING Case No. 36 Before the Oil and Gas Conservation Commission, State of Arizona. To: All Operators, Purchasers and Takers of oil and gas in Arizona and all other interested persons, particularly In Dlneh-bi-Keyah Field. Notice Is Hereby Given that the Oil and Gas Conservation Commission of the State of Arizona will hold 10:00 o'clock a.m. on Apr Room 204, 1624 West Adam. on, Arizona, on the application ot Kerr-McGee Corporation for permission to drill and produce an additional Lower Hermosa Formation well In the SE/4 of », "WeS In such matter may appear on said date and be heard. Done and Performed This 1st day of OIL A cor" SION O INSERVATION Chair OWENS, - .airman /s/ JOHN BANNISTER, Executive Secretary Published: Arizona Republic April 1, 2, 3, 4, 5, 6, 1969. NOTICE TO BIDDERS . . ., otice Is hereby given that sealed bids ] be received by the Board of Education of Phoenix Union High School System District No. 210 of Marlcopa County, Arizona, for the following: " ' ides To Include St. ' Trucks. ' c W |? gons, No. Icles To "Include Station sedans ana Trucks. Bid Sealed bids are to be tiled with the ivislon - - • ... ......... of Supply :ast Grant Street, or before 2:00 p.m. when time th.< and .'Property, 415 d representative. Specifications to wh... must conform are avalla slon of Supply and Propr call Dlvl. MARIO • •* •••M**m>*i v» wwiir T nwr«* , Publlshtd: Arizona Rwubllc Aprfi14, 5, 6,7, 1969; Phoenix Gazette April 4, S, 7, Ari .,., .NOTICE TO BIDDERS Notice Is tjereEV given that sealed bids will be received by the Board, of Education of PJioen x Union High School System District No. 210 of Mancopa County, ina, for the following: ..Inflno Grade Report - Four Part :ontlnuous Form. Bid Call No. »-49. 1 bids,are. to be filed with the lUPply and Property, «15 reet, Phoenix, Arizona, on I e publicly opened mt Superintendent ..or his duly ai .'pecitlcations to' which this bid must conform are available at the Slon of Supply and" Properfv. _ . " _,- T -,-. ...Jsare. to _. Division of Supply and Property, East Grant street, Phoenix, Arizona or • -So me 'the ....... _ ..... ... p.m. - April U Hancock Johnson Schwiebert Lee Hughes Twedell Phillips Laine Cotton trade in Far West takes drop Cotton trading decreased from a week ago in the Far West, according to the Consumer and Marketing Service, USDA. Prices were mostly steady to higher. Merchants and mills were selective buyers. Grower loan equities moved slowly and trading was limited to occasional sales. No new-crop contract interest developed among growers and merchants. Export demand tapered off. Qualities traded ranged from Middling to Below Grade. Several sales were booked with Vietnam, Japan, Germany and England for immediate and prompt shipment. Planting was about completed in the El Centro territory and made good headway in central Arizona. Planting slowly gained momentum in the San Joaquin Valley where many growers are still shredding stalks and disking. A few early birds have planted in the El Paso territory. Fresno Middling l 3 / 8 ", 3.5 to 4.9 mike, was up 15 points to 27.25 cents. Purchases on the Fresno Cotton Exchange amounted to 13,600 bales compared to 29,600 for the preceding week. Phoenix Middling 13-32", 3.5 to 4.9 mike, was unchanged at 25.40 cents. Phoenix spot Cotton Quotation* Spot prices are for cotton equal to the Official standards, with mike readings of 3.5 thru 4.9 In mixed lot», uncompressed, free of atl charges In warehouse In the market. American - Egyptian quotations are based on net. weight. Pinson Kalferd Madden Alexander nent service for General Electric's Phoenix Instrumentation Service facility at 3840 W. Clarendon. Kroger Co. income up 40 per cent CINCINNATI (AP)-The Kroger Co., supermarket chain, reported yesterday its net income increased 40 percent in the first 12 weeks of 1969 as compared with last year and sales were up 11.8 per cent. Net earnings a common share increased from 40 to 56 cents. Insurance firm elects attorney Paul R. Madden, a partner in the Phoenix law firm of Lewis Roca Beauchamp & Lint.on, has been elected senior vice president of Pacific Standard Life Insurance Co. of Burlingame, Calif. Madden, also a director of Pacific Standard, is on an indefinite leave of absence from the Phoenix law firm while serving with the insurance company. no mike readings stipulated. Prices are in cent, per pound. Upland Mid Sim Lm USp LtSp 1 1/32" 23.20 21.90 20.05 21.75 20.20 ] 1/16" 24.95 23.70 21.10 23.10 21.05 1 1/32" 25.40 24.00 21.25 23.25 21.05 1 1/18" 25.65 24.25 21.50 23.50 21.30 .Am-Egyptian 3 4 I < 1 3/8" 42.35 41.50 38.50 34.75 1 7/16" 42.85 42.00 38.95 35.10 Phoenix Upland Mike Differences Mike Readings Ptl. Per Lb. Incomparable • filla Monterey Casita Colony you can begin to LIVE! for a modest INVESTMENT ...IN SOCIABLE SCOTTSDALE 2 & 3 Bedroom, 2 &-3 Bath Casitas with walled Patio-Gardens. • RESORT & HEALTH CLUB • 18-HOLE GOLF COURSE • RESTAURANT . COCKTAIL LOUNGE NOT * CONDOMINIUM! NOT A COOPERATIVE! You receive title by insured deed, PRICES START IN THE "TWENTIES' NEW SECTION-NEW MODELS OPEN 10-6 DAILY DRIVE (AST CAMtlBACK ROAD TO 7«th STREET - NORTH TO MODEL! APARTMENT INVESTING SEMINAR Attend our 3 night apartment seminar, at 7:30 P.M. April IS, 16, 17. Become acquainted with apartment appraising methods, leverage, market conditions, current economics, owner responsibilities, management training, rental techniques, depreciation, etc. No obligation, however, reservations are required. Management Clearing 1230 E. Camelbock 264-1007 Arizona's largest marketplace for apartment investors 2.6 and below 2.7 - 2.9 3.0 - 3.2 3.3 - 3.4 3.5 - 4.9 5.0-5.2 5.3 and above -550 -400 -250 -100 0 -100 •200 CIRCLE DRIVE VILLA 7th Street and East Orangewood Drive NOW IEINO. OFFERED FOR SALE I Luxury Home sites in Mature Cltrui Grove • Underground Irrigation • Underground Utilities • Madison School District • An Ar«« of $60,000 to $80,000 Homes • Large Building Sites SHAMROCK INVESTMENT, INC. PH:-966-0833 or 265-3159 ATLANTIC for LEASING New 1969 Models—all with factory Air Conditioning '69 MUSTANG y-8, Automatic Trans., Power Steering, Radio, Air Cond. '69 IMPALA Custom Cpe. Automatic TKans., 350 Cu. In. V-l, Power Steering, Radio, «lr Cond. '69 FORD LTD. COUPE 390 Cu. In. V-», Automatic, Power Steer., Power Disc Brakes, Radio, Air Cond. '69 BUICK RIVIERA Air Cond., Vinyl Roof, Power Windows, Chrome Wheels, Deluxe Interior. 1/10/69 i95 A Me. 84 A Mo. $££66 OO A Me. $ 108'i M . CALL 264-1374 ATLANTIC LEASING 201O E. Indian School Road If you ar« one of the AffcoM Winter Visitor* who love* tha pleasant Phoenix climate, the culture, golf, special events, and just good leisure) living, if you visit the Valley every year... or would like to ... then this suggestion is especially for you. Before you leave Phoent* this spring, take a few mo* ments to discover how the economy and all the pleasure and the security of Own* ing an Encanto Townhouse) by Hallcraft could be • highly favorable investment for you. '! Encanto Townhouse* offer modern leisure living usually found only at exclusive country clubs. You'll be just a short walk from... '• Encanto Park Golf Course, one of the valley's finest. The Townhouse complex: has its own private pool. • ... There is a large clubhouse 1 with an adult lounge...-' • A billiard and game room: also for your pleasure... . Separate his and hers physical fitness rooms. •. ' Separate saunas too for your' pleasant relaxation... Handsome liveable single* level plans you'll be proud < to own in a choice central Phoenix location with con-. venient access to all parts of the Valley. An ideal and surprisingly economical way to spend • your winter months ... et' the same time building a valuable equity in a wise in* vestment. When you are ready to leave you can lock your door fora • week, a month or as long ae you choose with the satisfaction of knowing that ell exterior maintenance end all grounds care is done for you year 'round. Hard to believe? Why not take a few moments while in Phoenix to see tor yourself? Just follow this simple mep Hours: 9-8 Mon.-Sat. WAIHIN9TON PHOENIX HEADQUARTERS FOR NAME IRAND OFFICE EQUIPMENT AT UNMATCHED SAVINGSI FILING OAIINET SECRETARY Full Suspension ASTIC SUPER CITY ANDERSON WALNUT eXEOUTIVEDISK * Double Ptdtstaf ..; to this famous tmbltni. It could open th« door for! you to • most Pleasant Profitable Vacation,.. year, afttryaaraftaryaar. »iABBOTT DESK LAMPS Fluorescent — Dggl Tube Adj. t 36V/2" Micorta W«lnut Grained Top t Univ«r*al locking Center Drawer Reg,$11,95 A. . it I \

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