THE MICHIGAN DAILY
THURSDAY, SEPTEMBER 1, 1966
PAGE EIGHT TIlE MICHIGAN DAILY THURSDAY. SEPTEMBER 1. 19~fi
_... . . . .. ..... a ,... ...,.. . .. . Y . .1 " a v v v
Higher Interest Rates Slow Loans,
But Inflationary Upswing Goes On
I ". .
By SAM DAWSON
Associated Press News Analyst
NEW YORK-Former President
Harry S. Truman has raised a
question plaguing both the govern-
ment monetary authorities and
the stock market: Will rising in-
terest rates halt inflation or will
they bring on a sharp deflation
or even depression?
So far, tight money has pro-
vided more questions than an-
swers. The few facts to date are:
1. Prices have continued to
climb even as interest rates soared
to a 40-year high, and the pace
of the price increases has in-
2. Demand for business and con-
sumer loans and plans for busi-
ness expansion continue high de-
spite the rising cost of borrowing;
3. Credit shortages have sent
the home building industry into a
tailspin and raised the cost to the
consumer of many other pur-
4. The bears have had a field
day in the stock market, partly
because of the fear of deflation of
the boom, and partly because high
interest rates have sent investors
looking elsewhere for bigger re-
turns on their money.
To all this the money managers
reply that the effects of tighter
money will become visible this fall
and winter and that only then
will the country realize that a
runaway speculative boom has
As president, Truman fought for
low interest rates. And now he
charges once again that "a dras-
tic rise in interest rates works a
hardship on the consuming public.
It only benefits the privileged
What the business community
and members of Congress have
been debating, however, is whether
the sharp rise in interest rates
since last December has accom-
plished what it was supposed to-
halt what appeared to be the start
of a speculative boom.
The stock market's big plunge
would seem to say that speculation
has been nipped. The uneasiness
in business circles about the out-
look for the economy-and espe-
cially for profits-in 1967 might
Police Examine Own Forces
In Wake of Brutality Claims
seem to say that tight money was,
acting as a curb.
But so far there has been only
a moderation in the rate of the
economy's upswing. The growth
still continues, with the third
quarter of 1966 already considered
to have seen a faster growth than
the second, although not as big
a one as in the first three months
of the year.
Bankers say they are still under
great pressure for loans to busi-
ness. And corporations have turn-
ed to other ways of raising money
than bank loans-such as issuing
their own IOUs.
Consumer demand for credit
seems unabated, and consumer
spending continues high as the
total of perosnal income rises.
Auto Sales Off
Some state and municipal pro-
jects have been postponed be-
cause of the- spurt in interest
charges. Auto sales have eased,
although the effect of interest
charges is believed small. Housing
starts have tumbled, but the Con-
gress has moved to make $4 billion
of federal money available to the,
depleted mortgage market.
Still, the cost of living goes on
rising. And the question still de-j
bated is: Can rising interest rates
and tight money by themselves
ward off further inflation, or will
their cumulative effect suddenly
turn the economy down?
The stock market would like
the answer. So would many busi-
nessmen, and many wage earners.
And so would some government
Ann Arbor's Friendly Bookstore
CHICAGO (R)- Two policemen
seized a bare-chested heckler in
the all-white Chicago Lawn com-
munity, rushed him to a patrol
wagon and boosted him inside.
The white crowd shouted:
Twenty-four days earlier police
shut off a gushing fire hydrant
in a West Side Negro neighbor-
hood and arrested eight persons,
an incident that kindled three
nights of rioting.
The Negro crowd shouted:
Lt. John Harris, commander of
the Excessive Force Unit of the
Police Department's Internal In-
vestigations Division, has 14 ser-
geants-9 Negro and 6 white-
who check into reports of bru-
Supt, 0. W. Wilson set up the
unit May 10, 1965, for thatspe-
In the first year, Harris said in
an interview, the agency received
687 complaints. The allegations,
he said, were sustained' in 29 of
them and all the officers were
Penalties vary according to the
nature of the offense. They range
from working on a day off to a
30-day suspension to dismissal. If
a violation of a law is involved,
the case goes to the state's attor-
This summer-from June 12 to
Aug. 25-the unit received 192
cases, including about 35 from the
areas of the West Side riots and
the scattered civil rights demon-
Harris said inquiries have been
finished in 49 of them, with this
In 39, "a thorough investigation
reveals no substance to allega-
In 10, the chages were "not
That clause, Harris explained,
means "there wasn't enough evi-
dence to prove or disprove the
"That doesn't mean it didn't
happen," he added.
In some instances, he went on,
witnesses wouldn't cooperate or
the complainants cooled off.
Investigation hasn't been com-
pleted in the other143 cases.
The unit receives most of its
complaints by telephone, some
from anonymous callers. They us-
ually say some citizen was pushed,
struck, jabbed with a club or had
his arms twisted while being hand-
"Ninety-five per cent of the
complaints are linked to cases in
which people are arrested and
they resist arrest," Lt. Harris said.
"Then the officer has to use force
to overcome resistance."
The arrests among hecklers of
the civil rights marchers in July
and August were mostly based on
charges of disobeying police or-
ders to move along or stay back1
from the parade path, failure to'
disperse when so directed and
In many instances police had to
charge, football style, into groups
which formed in front or on the
flanks of the demonstrators.
Lt. Thomas Hayes, community
relations coordinator for the Po-
lice Department, tried cajolery
with some success. The evening of
Aug. 23, for example, the march-
ers gathered in an open field in
the South Deering district. Five
young men, neat in sports shirts
and slacks, infiltrated police lines
and edged toward the demonstra-
Hayes approached them and
said' "You lads look too intelli-
gent to be going around insulting
people. Why don't you leave?"
And they did.
Rmad and Use The Michigan Daily Classifieds! t
Yes, I would like to be a subscriber to
I agree to be billed later.
i $8.00 for fall and winter terms ($9.00 if by mail)'
$8.00 for fall and winter terms
MAI L TO : 420 Maynard. St.;
" ~Ann Arbor, Mich. 48104;
I IIBu & v ~ A-U ,m A
Please Print) Lst Name First Name Middle Initial
I geIo ebledltr
Street No. or Room No. Street Name or Dorm Apt. No.
' City State Zp Code I
FFall & Winter Term Q Fall Term
STUDENT and OFFICE SUPPLIES
OFFICE FURNITURE and FOUNTAIN PENS
LOOSE LEAF NOTE BOOKS
Rubber Stamps made to order
NOTARY SERVICE AVAILABLE
FOUNTAIN PENS all makes
Sales & Service
by Factory-trained men.
Dealer for A B Dick Mimeographs and Supplies
From campus to campus the trend is spreading...spread