PAGE six THE MICHIGAN DAILY WEDNESDAY, DE( PAGE SIX THE MICHIGAN DAiLY WEDNESDAY. DE4 I 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 away. * 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 rowing costs. 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 i THE VICEROY 400 A Superb Slide Projector Value Check these features $ 9 for only 1140-500 Watt Lamp i Top Quality Optical System Full Remotea Control ... focus, cycle or change direction from across the room Uses 4 Different Slide Carriers 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 QUARRY PHOTO DEAR MR HARE: I DON'T CARE IF THIS NOTE IS SKINNY, I WROTE. I JUST BOUGHT A MICHIGANENSIAN, MY POCKETS ARE FLAT- I'VE NO PEN-SION LEFT TO LIVE ON. O, WHY, YOU MAY ASK, DID I WAIT SO LONG WHEN-FOR A 5-DOLLAR BILL AND A SONG I COULD HAVE BOUGHT THAT BOOK-WHICH NOW COSTS SIX- AND A DIRTY LOOK? TELL ME! RESPECTFULLY, MR. TORTOISE 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 " Novelties " Baked goods * Christmas decorations Auctions begin at 4 and 8 P.M. ANN ARBOR COMMUNITY CENTER 625 N. Main t 1 I i 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- ating costs. Across Campus 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 Union. 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 Manchester College, No. Manchester, Ind. says, "Any stay at student"" Chicago's YMCA Hotel }~ and enjoy a weekend for $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- diately. Assembly for Graduates: At 1 p.m. in Natural Science Aud. Marshals will direct graduates to proper stations. Programs: To be distributed at Hill Aud. 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 Rackham Bldg. 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- ORGAN IZATION NOTICES 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, Michigan Union. 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, 764-4402. Placement ANNOUNCEMENTS: 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 available. 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- 4:30. * * * Details and applications available at Bureau of Appointments, 3200 SAB. Or call 764-7460 for additional informa- tion. SUMMER PLACEMENT SERVICE: 212 SAB- 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 212 SAB. 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. each day. 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 usual. * * * Details at Summer Placement, 212 SAB. TEACHER PLACEMENT: The following schools have vacancies now and/or next semester: Hamtramck, Mich. - H.S. Physics, Elem. Vocal, Speech Corr., Visiting Teacher. 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 Engrg. DEC. 16- Deering Milliken Service Cohp.,,a.par- tanburg, S.C.-PhD: ChE & ME. R. & D. to A ' 318S. State 761-2011 2215 W. Stadium 665-0621 ANN ARBOR I 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 Late Snack Room at Y Hotel 3: Sun. A.M. Breakfast at Y Hotel Worship at Central Church Lunch atY Hotel 1. F. P, I. : I, : 1, 3. .30 .00 .00 .60 .45 :ree 1.30 .15 .45 s/ .00 .60 S.30 WORRIED? -I'- A flEN TION TAPE RECORDER OWNERS HI F1 ENTHUSIASTS MUSIC LOVERS (or haters) EXAM TIME is Outline Time, Use our condensed OUTLINES ,, Send Your "Dirty Ole Friends" A Happy Holiday Greeting from CARDS AND CANDIES Sun. P.M. Back to Campus Total $16. 613 .. .. . . .. . ... ---r --r---l 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 for EXAMS ALL SUBJECTS Uhrich's Bookstore 312 So. State 1203 So. University " r WESTMINSTER RECORDS Incomparable Recording HERMAN SCHERCHEN conducts HANDEL'S MESSIAH (complete) Are you disturbing your room-mate? OR: Is your room-mate disturbing you? Do you want to enjoy hi fidelity sound at maxi- mum volume but with no distraction to others? THEN THE 303 STEREO HEADPHONE IS FOR YOU AV because it has' Soft foam-covered earpieces Lightweight for comfort Wide frequency range, 20-15,000 c.p.s. Single 20 ft. cord with stereo phone plug " , ,:= ' ' ,; '' e,; Let's take a trip with Saturn Airways! Dependable charter flights, any time, for special outings, football games, vacations. Anywhere in the States, Europe, Caribbean, Hawaii. College groups everywhere depend on Saturn. We're charter specialists. Over 17 years' experience. Luxurious DC-7C air- craft. Personalized service. Rock-bottom fares'to write home about (or for). Phone or write for details. 3 LP's 98 MONO STEREO I