Arizona Republic from Phoenix, Arizona on April 5, 1969 · Page 63
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Arizona Republic from Phoenix, Arizona · Page 63

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Phoenix, Arizona
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Saturday, April 5, 1969
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Page 63
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••MJLL.01 JQ THE ARIZONAREPUBLIC usiness Phoenix, Sat., April 5, 1969 37 Let's take stock Margin increase coming up next? By DON G. CAMPBELL Business and Financial Editor 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 vengeance regardless of the consequences. THE ANTICIPATED change in policy came recently with the increase in the prime rate to 7% 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 commercial 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. This past week, not unexpectedly, the discount rate was, indeed, raised and its significance was further underlined by an additional move that HADN'T been anticipated—an increase in the reserve requirements that banks must maintain. In at least one respect this unexpected move is destined to have a perhaps more immediate effect on the availability of 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 raised the margin requirements the more crap shooters you keep out of the market and, not unnaturally, the more crap shooters you keep out of the market the healthier it is for all concerned. In 1929, 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 even 90 per cent of their market value in a few weeks. 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 W9UUD t?R CARE TO'AVE A FISH AN' CHIP WITHAUONCUY WOMAN? Andy Capp BB i W* Billy Wrm, tm*« T* 9 Furnished by U.S. Department of Airl- culture, Livestock Division, Market News Service. PHOENIX — Demand for slaughter cattle slowed some although good early; late trade however saw buyers turn bearish and not too aggressive although feed' lots continued to receive-fairly ShiM>: zero; othlng on offer. CHICAGO (AP) —Butcher hot prices closed steady to 25 cents tower_.et ft Chicago JfockvarSi Friday. Recelp totaled 3.000 hogs. qulry; slaughter steers mostly steady, instances weak: slaughter heifers steady to strong; slaughter calves steady. Contracting of slaughter < lure delivery again, prevailf attle for fu- with near 70 P»r 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 salet ter steers, 500 slaughter ll a o u ? h i?3 r 5Q C 1aTwle? Pari same week year ago. Inplude^ 1 f 3,100 _sj«u»fc I ., jared v week and 7,850 h - el ^' ?! row DENVER (AP-USDA)-Hogs 200; bar- iws and gilts steady to strong; U.S. 5-4 Olbs 20.25; « M2 Ibs 18.85; sows, scarce. r2L' he w . eek o, A A barrows and gilts 50-75 lower; sows 25-50 lower. Cattle none. Sheep none. KANSAS CITY (AP)-Cattle i none; ^iqF enough — ouafe price test. Hogs 2,500; on we fty^i .. calves an ade- Slaughter steer and slaughter ^heifer were strong to 50 cents higher and can receipts Totaled 2,WO head. RrlmrUf) ,325. pound slaughter steers soW «».« Spot metals NEW YORK ,(AP) metal Prices FrWav: • pound, Connectla " Shell posts increase tor 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 othe purchasers in the affected areas. 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 € 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. Exchanges closed The nation's stock exchanges were closed yesterday in observance of Good Friday. Most commodity and other markets also were dosed. 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 laid it was optimistic about effects on AT&T of the general investigation of the telephone system by the Fed eral Communications Com mission. "While the FCC'i general investigation is now 3% 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. Japan approves production plan TOKYO (AP) - The Japanese government yesterday approved a U.S.-Jgpan 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 di joint venture between 6f g Warner Corp, of Chicago am AisinseiU Co., a subsidiary of Japan's Jgj-fWt tute outer, Toyota Motor Co. Business news in brief Valley National names assistant vice presidents The Valley National Bank has announced naming of 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 JAP)-Forelfln_Exchang n dollars'arid'decimals' of V dollar Canada in NY (free) Irltain (pound ->dav May J-day Australia (dollar) lelglum (franc) >enmark (krone) : rance (franc) land (guilder) FrlT .9290 2.3945 2.390$ 2.3835 2.3795 1.1170 .01987 Thurs .9284 2.395C 2.3905 2.3640 2.3790 taly (lira) Jorway.(krone) . , al, (escudo) _ aill (cruzeiro} if'reei Aexlco (peso)., Venezuela (bolivar) 4onv Kong (dollar) Japan (yen) .2753 .0015 1 .1401 .0355 .1936 .2315 .2486 .0801 .2230 .1650 .00279 Butter and eggs CHICAGO (AP-USDAl-Butter: wholesale selling price* on ill grades un ggs: prices oald delivered to Chi ,. lower to 1 "Igher; 80 per cen better grade A whites 45-47; _m« white extras 40W-42; standards Legal Advertising Before the mil NOTICI OF.. HEARING Conservatio •—•" *"I.™"vr" Case No. 36 ,011 and. G»s BVIVIW IIIV Wll HI1W ww» E ilsslon, State of Arizona. All .Operators, Purchasers an s of oil and gas In Arizona and a 10*619 ui un anu wa* 111 m IJ.WMO »'•" other interested persons, particularly >lneh-bl-Keyah Field. Notice Is Hereby GK/en that the O nd Gas Conservation Commission of th rwv V VI 1*61 *•>! IVI1 XWIIMIIIVWIWII HI •• • of Arizona will hold • hearina a v:w o'clock a.m. on April 16, 1969, .1 loom 304, 1«4 West Adams. Ph trfzone, on the application Cerr-MeGee Corporation for pern o drill end produce an addltlp ' fermosa Formation well In th iectlon 32, Township M North, ;ait, ofnth-bl-Keyah Field, %" f 7ersons 0n |nterested In such matte m DU PP ;n*d« d rm d .d e f n hf, b ?,f e d r a d y- o APr "'"%AND-6AJ CONSERVATION April It, ..... . Adams. Phoenix atlon o ... permisslo Idltlonal Lowe the SE/4 o •• Range 3. Apach —Jrman JOHN BANNISTER, Pubfished:"Arizona Republic April 1, 2 t duca >l Sys of Marlcopa "County •r ivr inv fwmiWlng: . cles To Include Station Wagons, in* and Trucks. Bid Call No. ..Jed bids «re, to be, filed with th Division of. Supply and Property, 41 East print Street, Phoenix, Arizona, o or before 2:5p p.m., -April 14, 1949 a which time they wll be publicly opene end read by the Assistant Superintended T J. -K_- i__ ..£ ^ll j , ho TO BIDPEI tlyen thit y ,th» Boan ERS bid lye . Sv :ount 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 Centre 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 1W\ 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 1 3-32", 3.5 to 4.9 mike, was unchanged at 25.40 cents. Phoenix spot Cotton Quotations Spot prices are for cotton equal to Pinson Kalferd 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 per cent 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 Incomparable ¥; Monterey Casitii 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 • IB-HOLE GOLF COURSE • RESTAURANT • COCKTAIL LOUNGE NOT A CONDOMINIUM! NOT * COOPERATIVE! You receive title by insured deed, PRICES START IN THE "TWENTIES' NEW SECTION-NEW MODELS OPEN 10-6 DAILY DRIVE EAST CAMELBACK ROAD TO 76th STREET — NORTH TO MODEL! Madden Alexander Lewis Roca Beauchamp & Linton, 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. APARTMENT INVESTING SEMINAR Attend our 3 night apartment seminar, at 7:30 P.M. April 15, >«, 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. Camelboek 264-1007 Arizona's largest marketplace for apartment investors the Official Standards, with mike readings of 3.5 thru 4.9 In mixed lots, uncompressed, free of all charges In warehouse In the market. American - Egyptian quotations are based on net, weight, no mike readings stipulated. Prices are in cents per pound. Upland Mid Sim Lm LtSp LtSp 1 1/32" 23.20 21.90 20.05 21.75 20.20 1 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-Egyptlan 3 4 5 « 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 Pts. Per Ib. 2.6 and below -550 2.7 - 2.9 -400 3.0 - 3.2 -250 3.3 - 3.4 -100 3.5 - 4.? 0 5.0-5.2 -100 5.3 and above -200 CIRCLE DRIVE VILLA 7th Street and East Orangewood Drive NOW BEING OFFERED FOR SALE t Luxury Home Sites In Mature Citrus Grove • Underground Irrigation• Underground Utilities • Madison School District • An Area of $60,000 to $80,000 Homes • Large Building Sites SHAMROCK INVESTMENT, INC. PH: 966-0833 or 265-315* ATLANTIC for LEASING New 1969 Models—all with factory Air Conditioning '69 MUSTANG V-8, Automatic Trans., Power Steer ing, Radio, Air Cond. '69 IMPALA Custom Cpe. Automatic Trans., 350 Cu. In. V-8, Power Steering, Radio, Air Cond. '69 FORD LTD. COUPE 390 Cu. In. V-l, Automatic, Power Steer., Power Disc Brakes, Radio, Air Cond. '69 BUICK RIVIERA Air Cond., Vinyl Roof, Power Windows, Chrome Wheels, Deluxe Interior. Hours: 9-6 Mon.-Sat. AlLITiMS INSPECTiDAND ASSEMUiD 525 W. WASHINGTON Ph.2St.7tA1 PHOENIX HEADQUARTERS FOR NAME BRAND OFFICE EQUIPMENT AT UNMATCHED SAVINGS! H-O-N STEEL FILING CABINET ABBOTT SECRETARY CHAIR • 52" High • 4-Drawer • Full Suspension • Roller Bearings Model 101 Swivel Local Guar. ft Service ASTIC VALUE AT SUPER CITY ANDERSON WALNUT EXECUTIVE DESK luble Pedestal »ABBOTT DISK LAMM Fluorescent Light t 36"x72" Micerta Woln Groined Top • Universal locking Ctnttr Drawer vacations toiest- If you are one of the Arizona Winter Visitors who loves tht 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 Phoenix this spring, take a few moments to discover how tht economy and all the pleas* ure and the security of own* ing an Encanto Townhous* by Hallcraft could be a highly favorable investment for you. Encanto Townhouses offer modern leisureliving 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 with an adult lounge... A billiard and game room also for your pleasure... Separate his and hers physical fitness rooms • • > Sepa rate saunas too for your pleasant relaxation ... Handsome liveable single* level plans you'll be proud to own in a choice central Phoenix location with convenient access to all parts of the Valley. An ideal and surprisingly economical way to spend your winter months... at the same time building a valuable equity in a wise in* vestment. When you are ready to leave you can lock your door for a week, a month or as long as you choose with the satisfaction of knowing that all exterior maintenance and all grounds care is done for you year 'round. Hard to believe? Why not take a few moments while in Phoenix to see for yourself? Just follow this simple map .,; to this famous emblem. It could open the door for you to a most Pleaiant and Profitable Vacation.., yaw afttr year after y«ar. IBAttBBflMBM ^Bi^ii^iiBUifcAM^^^fA •N* MH< I* If t «. |*TUM»t ItttB mil n INT « inn *w. • jfc

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