THE MICHIGAN DAILY
PAGE SIX THE MICHIGAN DAiLY WEDNESDAY. DE4
Rate Raise: What Comes Next?
By SAM DAWSON i stead of the four per cent as of about half of any increase in bor- more expensive for businessmen
DAILY OFFICIAL BULLETIN
Associated Press News Analyst
NEW YORK-Credit is a way
of life with many American fam-
ilies and most businessmen. A
general rise in interest rates thus
can affect the family budget and
business operating costs.
But by how much? And how will
they react? Those are questions
now that the Federal Reserve
Board has raised the basic inter-
est rate. It now charges banks 4 2
per cent to borrow from it in-
last week. This led many commer-
cial banks to raise their own
prime, or basic, rate for loans to
business from the previous 4% per
cent to five per cent.
Those who think the effects of
the government's action may be
slight argue this way:
! Few business loans of late
have been made at the old prime
rate of '4 per cent. Most firms
have been paying five per cent or
more to get funds. The big de-
mand for credit may push the
borrowing costs for the least fav-
orable risks a bit higher. But few
customers are likely to be driven
* Interest is tax deductible.
That is, it is part of operating
costs to be charged off before
paying the corporate income tax.
This is still near 50 per cent, so
businessmen figure that, in ef-
fect, the Treasury will be paying
e Consumers pay little attention
to interest rates ,according to
lenders. What they want to know
is the amount of the monthly pay-
ment and how it fits their pay-
check. A rise of a few cents due
to higher interest costs may mean
little in today's affluent society.
. But many critics of the Federal
Reserve's tighter money policy,
to carry inventories, thus either;
trimming their buying from pro-
ducers, or tempting them to raisej
(Continued from Page 2)
Winter Term registration, $1.50 per
hour. Report to Room 3501 Admin. Bldg.
as soon as possible.
prices to their customers-losing Psychology colloquium: Dr. Aram
a few, i fthey do. Amsel, Dept. of Psy., Univ. of Toronto,
0 Bond offerings to finance will speak on "Transfer of Frustrative
state and local buildings of schools, Control of Extinction from One Stim-
roads, waterworks and the like will u'us to Another within the Individual
road, wterwrksand he ike illSubject" Dec. 10, Aud. B, Angell Hall,
be harder to float and costlier to 4:15 p.m.
the taxpayers who ultimately foot-
the interest charges. MIDYEAR GRADUATION EXERCISES
THE VICEROY 400
A Superb Slide Projector Value
Check these features $ 9
1140-500 Watt Lamp
i Top Quality Optical
focus, cycle or change direction
from across the room
Uses 4 Different Slide
01CCapacity Rototray (shown)
v Easy-Edit Trays
* Universal Trays
* Stackloader (Trayless) Changer
j' Made in U.S.A.
by Sawyers, Inc.
ASK FOR A DEMONSTRATION
DEAR MR HARE:
I DON'T CARE
IF THIS NOTE
I JUST BOUGHT A
I'VE NO PEN-SION
LEFT TO LIVE ON.
O, WHY, YOU
MAY ASK, DID
I WAIT SO LONG
AND A SONG
I COULD HAVE
NOW COSTS SIX-
AND A DIRTY LOOK?
t Dearer money will make it
Do your Christmas Shopping at the
SHOLIDAY ART FAIR
SUN., DEC. 12 .. . 2.10 P.M.
" Art objects'
" Gift items
" Baked goods
* Christmas decorations
Auctions begin at 4 and 8 P.M.
ANN ARBOR COMMUNITY CENTER
625 N. Main
0 The U.S. Treasury must bor- December 18, 1965
See Related Story, Page 7 To be held at 2 p.m. in Hill Aud.
row more money to finance a Exercises will conclude about 4 p.m.
fear the worst. And here are some growing deficit-and already its All graduates of the summer term of
of the dire possibilities they fore- annual interest cost has risen to 1965 and graduates as of December 1965
see: the $12-billion level. Reception for graduates, their rela-
" Costlier borrowing and tight- " Building and sale of new tives and friends in Michigan League
er credit' may lead corporations to homes has been in the doldrums Ballroom at 4 p.m. Please enter League
take a second look at the cost of of late. If mortgage costs rise, It Tickets: Four to each prospective
expansion plans, and at the prob- could be still harder to find buy- graduate, to be distributed from Mon.,
able profits to be made from tak- ers. Dec. 6, to 1 p.m., Sat., Dec. 18, Diploma
ing on more plant and equipment. And then there's yet another I Department, 555 Administration Bldg.,
except on Sat., Dec. 11, when office
If business capital spending drops, question-perhaps the most ques- will be closed. Sat., Dec. 18, office
the whole economy will suffer. tionable of them all. Can the mil- will be open from 9 to 1 p.m.
lions who own and buy U.S. Sav-!
will spiral into higher borrowing
costs for consumers and for most
businessmen. And if it does,
whether this will dim the ardor
of many families for new gadgets
bought on time, cause many firms
to trim borrowing plans - or to
raise prices to offset rising oper-
WEDNESDAY, DEC. 8
11 a.m.-Press conference for
Rep. Robert Griffen, possible
candidate for U.S. senator, Rm.
3-A of the Union; followed by
luncheon and reception at the
4 p.m.-Cyrus Leventhal will
speak on "Control of Protein Syn-
thesis in Virus Infected Cells" in
Rm. 330 Medical Science Bldg.
7 and 9 p.m.-"Thief of Bagh-
dad" will be shown free of admis-
sion fee at the Cinema Guild.
8 p.m.-"A Discussion of Mari-
juana" symposium sponsored by
SGC will be held in the Multi-
purpose Room of the UGLI.
8:30 p.m.-School of Music will
present a string trio concert in
Rackham Lecture Hall.
A swinging weekend in
Chicago for $16
SUN M. KEIRN
}~ and enjoy a
$16.15. Here Is
_.... : how I did it.
Academic Costume: May be rented at
Moe Sport Shop, 711 N. University
Ave. Orders should be placed imme-
Assembly for Graduates: At 1 p.m.
in Natural Science Aud. Marshals will
direct graduates to proper stations.
Programs: To be distributed at Hill
Candidates who qualify for a doc-
toral degree from the Graduate School
and WHO ATTEND THE GRADUA-
TION EXERCISES will be presented a
hood by tie University. Hoods given
during the ceremony are all Doctor of
Philosophy hoods. Those receiving a
doctor's degree other than the PhD
may exchange the PhD hood for the
appropriate one after the ceremony.
Such exchange may be made in Room
1139 Natural Science Bldg. during the
half hour after the recessional march,
or in Room 2564 Administration Bldg.
on the following Monday morning.
French and German Screening Exami-
nations: The Grad School's examina-
tions in French and German for Doc-
toral candidates will be administered
on Sat, morning. Jan. 8, from 9 to 11
a.m. In Auditorium B, Angell Hall. All
students planning to take one of these
examinations must register for it, be-
fore Sat., Jan. 8, at the Reception
Desk of the Grad School Office in the
Doctoral candidates must pass the
objective screening exam before tak-
ing the written test in French or
German, unless they have received a
grade of B or better in French 111
or German 111.
For further information call the Re-
USE OF THIS COLUMN FOR AN-
NOUNCEMENTS is available to officially
recognized and registered .student orga-
nizations only. Forms are available in
Room 1011 SAB.
. . .
CercIe Francals, Baratin, Thursday,
3-5 p.m., 3050 Frieze Bldg.
Cervantes Club, The last meeting of
the year. Important everyone be there.
Thurs., Dec. 9, 7:30 p.m., Room 3X,
Joint Judiciary Council, The Council
will meet on Wed., Dec. 8, 7:15 p.m. in
the Council Room, Third Floor, SAB.
ception Desk, Office of the Grad School,
Dow Chemical Co., Midland, Mich.
-Announces Patent Law Scholarships
for Chem., Chem. Engrg., & Pharmacy
Grads or Seniors interested in field
of chemnical patent law. Application
must be made directly to Law School
to be chosen from lost of 20 midwest
colleges including U. of Chicago, De-
troit. Ill., Mich., Notre Dame, Wis.,
Wayne State, etc.
American Airlines, N.Y.C. - An-
nounces Career Exposition at Waldorf
Astoria on Dec. 28 & 29. Open to all
students interested in career in flight,
ground or mgmt. Especially interested
in 1966 BA & MvA's for Mgmt. Trng.
Prog. for finance & corp. planning.
sales & services & immed. openings at
maintainence & engrg. centers. Also
women for stewardess,areservations, etc.
Univ. of Pennsylvania, Phila., Pa.
-Announces doctoral program in Bus.
& Applied Econ. for students interest-
ed in applied research. Fellowships
Columbia Univ., Grad School of Bus.,
N.Y.C.-Offers MBA program. Trimes-
ter plan lead to degree in 16 mos. Fi-
nancial ai davailable. Program begins
June, Sept., or Feb.
Invitation to Dec. Grads: Seniors
graduating in December are welcome to
visit offices of Bureau of Appoint-
ments, 3200 SAB, weekdays to look over
current position openings in various
fields. Browse through directories of
schools, employers, govt. opportuni-
ties and company literature. All grads
with minimum of 12-15 hrs. at U. of
Mich. are eligible to register for place-
ment services. Hours 8:30-12 & 1:30-
* * *
Details and applications available
at Bureau of Appointments, 3200 SAB.
Or call 764-7460 for additional informa-
SUMMER PLACEMENT SERVICE:
Chicagoland Career Conf., Chicago-
75 companies will meet on Dec. 28 &
29 at McCormick Place to discuss ca-
reers in Acctg, Advtg., Banking. Chem.,
Insurance, Research, Engrg., Mfg., and
many more. Applications available at
International Student Information
Service, Brussels-Mr. Efratas will be
on campus Dec. 9 & 10 to explain
lobs in Europe & how to get one. He
will be in 212 SAB until 3:30 p.m. and
Aud. D, Angell Hall, from 4-5 p.m.
U.S. Civil Service, Wash., D.C.-An-
nounces office & science ass't. post-
tions for summer 1966. Application
deadline Jan. 3. Govt. brochure & ap-
plications available at 212 SAB.
Summer Placement Service will be
openduring the Christmas vacation as
* * *
Details at Summer Placement, 212
The following schools have vacancies
now and/or next semester:
Hamtramck, Mich. - H.S. Physics,
Elem. Vocal, Speech Corr., Visiting
Highland Park, Mich.-H.S. English.
Mt. Clemens, Mich. (Clintondale P.S.)
-Speech Corr., Visiting Teacher.
For additional informatOn contact
the Bureau of Appointments, Educ.
Div., 3200 SAB, 764-7462.
ENGINEERING PLACEMENT INTER-
VIEWS-Seniors & ,grad students, please
sign schedule posted at 128-H West
Deering Milliken Service Cohp.,,a.par-
tanburg, S.C.-PhD: ChE & ME. R. &
2215 W. Stadium
Open Mon. thru Sat. 'Til 9:30
LAYAWAYS AND CHARGE ACCOUNTS INVITED
(AFTER IAN. 3!)
Read and Use Daily Classified Ads
Fri. P.M. Dinner at YMCA Hotel $1,
Visit Old Town 3.
Room at Y Hotel 3
Sat. A.M. Breakfast at Y Hotel
Art Institute Tour Fr
Lunch at Stouffer's 1
Sat. P.M. Nat. Hist. Museum Tour Fr
Dinner at Y Hotel 1I
Sat. nite dance, Y Hotel
Room at Y Hotel 3:
Sun. A.M. Breakfast at Y Hotel
Worship at Central Church
Lunch atY Hotel 1.
A flEN TION
TAPE RECORDER OWNERS
HI F1 ENTHUSIASTS
MUSIC LOVERS (or haters)
is Outline Time,
Use our condensed
Send Your "Dirty Ole Friends"
A Happy Holiday Greeting
CARDS AND CANDIES
Sun. P.M. Back to Campus
.. .. . . .. . ...
MEN WOMEN * FAMILIES
Stay at Chicago's
YMCA,. HOTE L
826 South Wabash
at the edge of the Loop
accommodations or2,000 . rates $2.85 and a,
Write for reservations or call 922-3183
312 So. State
1203 So. University
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