The Michigan Daily-Sunday, October 7, 1979-Pae 3 Federal Reserve ups lending rate to 12% BILLIARDS at Reduced Rates every day to 6 pm atthe UNION Open 10 am Monday thru Friday 1 pm Saturday & Sunday From AP and Reuter WASHINGTON - The Federal Reserve Board, mounting a major anti- inflation campaign, announced last night a dramatic one per cent increase in the interest rate charged member banks. p 0The Fed's so-called "discount" len- ding rate will now rise to a record 12 per cent. The latest increase comes 19 days after the board hiked the discount rate to 11 per cent. THE DISCOUNT rate is the interest rate member banks are charged when borrowing from the federal gover- nment. The hike will likely drive up borrowing costs for businesses and con- sumers, including homeowners. ~ ~ The measures were announced in a r rare Saturday night news conference by Federal Reserve Chairman Paul Volcker, who said the timing was designed to let financiers analyze the r new measures while markets were A closed. Increases in the discount rate are aimed at curbing the rapid rise in the *. > money supply, hyperactive borrowing and excessive speculation in financial and commodity markets, particularly gold. THE RESERVEo3ard's move came Daily Photo by LISA UDELSON two days after the government announ- The Michigan State Spartan predicts with a victory signal that his team ced that wholesale prices shot up 1.4 per will prevail after MSU scored a touchdown to tie up the intrastate bout cent last month, the largest increase in midway through the third quarter. The nose-plugging Michigan fan surely five years. changed his body language when a Wolverine victory was secured. The board has not enacted a one per cent increase in the discount rate, Ova - Carter,. Pope call which is the rate charged on loans to commercial banks, since President Carter launched a'major dollar rescue effort on Nov. 1. The fact that the vote was unanimous was also in marked contrast to the four- to-three vote by which the board raised the rate by half a percentage point last month. SINCE THEN, Volcker said, officials have become concerned that the economy is growing more strongly than expected, while inflation has been wor- se than expected. Consumer prices have been rising at an annual rate of 13 per cent so far this year, and a report from the Labor Department earlier this week showed that wholesale prices rose for Septem- ber at an annual rate of 18.2 per cent-the fastest increase in five years. In a statement issued almost im- mediately after the increase was an- nounced, White House press secretary Jody Powell said the action "will help reduce inflationary expectations, cor- tribute to a stronger U.S. dollar abroad, and curb unhealthy speculations in commodity markets." "THE ADMINISTRATION believes that success in reducing inflationary pressures will lead in due course both to lower rates of price increases and to lower interest rates," Powell said. His statement also said that the high priority given anti-inflation efforts have been reinforced by "high rates of inflation led by surging oil prices, other economic data, as well as developmen- ts in commodity and foreign exchange markets." In addition to an immediate jump in the discount rate, the Fed. said it was placing greater emphasis in day-to-day operations on the supply of bank reser- ves and less emphasis on conflicting short-term fluctuations in the federal funds rate, which is the interest banks offer each other. THE BOARD imposed an extra eight per cent reserve requirement on borrowings that have been actively used to finance rapid expansion in bank credit. Second Chance s Hospitality and Student Night for info coll: 994-5350 A F cti Cl r Why get caught up in the pack, when we at the PAPER CHASE CAN meet your copying of graphic needs all under one roof? Centrally located on the basement floor of the Michigan Union makes it easy for obtaining the quickest service possible. With services like these why go anywhere else? ~ ' I GRAPHIC ARTS DIVISION Fliers * Logos Business Cards " Posters amera Work e Heat Transfers Custom printed T-shirts DUPLICATING DIVISION Student and Faculty Discounts Quality Reproduction- Soth Offset and Photocopying Dissertations * Course Packs Free Collating " Resumes PAPERCh.ASE 530 S.State-Ann Arbor,iMi."48109 - 313-665-8065 INTERNSHIPS In WASH INGTON D.C. LANSING MI. Sponsored by Career Planning & Placemenri Interested in working in Washington, D.C., or Lans- ing, Michigan, during summer, 1980? Come find out how at the University of Michigan's Public Service Intern Program Mass Meeting. Summer internships are available in legislative offices, executive offices and agencies, the judiciary, lobbying organizations, and the media. Financial assistance available. SUNDAY FILMS Cinema I-The Exterminating Angel, 7, 9 p.m., Angell, Aud. A. Cinema Guild-Investigation of a Citizen Above Suspicion, 7, 9:15 p.m.', Old Arch Aud. El CinePolitico-Nicaragua, 8 p.m.eAngell, Aud. B. k Ethics and Religion-The Hopi Way and Look What We've Done to the Earth, 7 p.m., South Quad, Dining Room 4. PERFORMANCES *PTP-Show Boat, 2,8 8p.m., Power Center. Institute of Labor and Industrial Relations-Don't Mourn, Organize, 7 - ; p.m., Frieze Bldg., Tueblood Theatre. Musical Society-Prague Chamber Orchestra, 8:30 p.m., Hill. t. s SPEAKERS Academic Affairs/Studies in Religion-Delai Lama, "The Buddhist Way to World Peace: Meditation and Altruistic Commitment," 4 p.,., Hill Aud. Christian Politics-Dr. James Skillen, 10 a.m., University Reformed Church, 1001 E. Huron, Dr. Rockne McCarthy, 10:45 a.m., St. Aidan's Episcopal and North Side Presbyterian Church, 1679 Broadway. EXHIBITS Michigan's Plants in Danger-rare, threatened, and endangered plant species of Michigan, Matthaei Botanical Gardens, through November 30. Upper Peninsula Artists-Prints, weaving, and ceramics, Union Gallery, through November 4. MISCELLANEOUS S Michigan Media Resources Center-Poets Talking, tv broadcast, 6:30 Michigan Media Resources Center-The Dickens World, David Copper- field, TV broadcast, 7 a.m,, WDIV-TV. Ethics and Religion-symposium, Dalai Lama, "A People's Paradigm for Peace," 1-3 p.m., Rackharn Aud. Hiking Club-meet at 1:30 p.m., Rackham N.W. entry on E. Huron. Gay Discussion Group-Program-game night, 6 p.m., Guild House, 802 Monroe. U.S. Olympic Cycling Team Benefit Ride-Registration between 8 and 11 ;a.m., Forsyth School. MONDAY FILMS Cinema Guild-The Mistress, 8 p.m., Old Arch. Aud. PERFORMANCES Flute Student's Recital-5:30 p.m., Recital Hall. Tuba Students Recital-8 p.m., Recital Hall. SPEAKERS Assoc. for Behavior Therapy-Prof. Ray Roberts, Univ. of Kansas, "Two Studies in Children's Self Control", 7 p.m., 1309 School of Ed. Dept. of Anthropology-William Labov, Univ. of Pennsylvania, "Gram- mar and Law, the Interaction of Isolated Structures," 4 p.m., Aud. C, Angell. Russian and E. European Studies-Alex Pravda, Univ. of Reading, England, "Workers and Intellectuals, in Communist States", 4 p.m., Rackham E. Kecture Rm. Wesley Foundation-Barbara Fuller, "Human Rights in Vietnam: Hunger, Jobs, and Refugees", 7:30 p.m., 602 e. Huron. Aktsia-_r'efusenik Zalmanson, "Soviet Jewry and Human Rights", 8 p.m., Multipurpose Rm, UGLI. MEETINGS Peoples Action Coalition-7 p.m., East Quad Rm. 126. lsa Faculty-October meeting,.4:10 p.m., Aud. A Angell. Mich. Association of Gerontology Students-7:30 p.m., Gerontology Library in Old Art & Arch. Committee ,Concerned with World Hunger-7:30 p.m., Room 3001, Henry Vaughn Bldg., School of Public Health. for end to arms race (Continued from Page ) try's efforts for arms limitation, especially of nuclear weapons ... With all my heart I hope that there will be no relaxing of its efforts both to reduce tle risk of a fatal and disastrous worldwide conflagration, and to secure a prudent and progressive reduction of the destructive ,capacity of military ar- senals." The pontiff, who has charmed people with his easy manner, ended his White House visit with a typical spontaneous gesture. Returning to the podium, the smiling pope told a crowd of some 5,000 invited dignitaries: "The pope wants to bless you - with the permission of the president of the United States." HE THEN delivered a blessing in Latin. The crowd responded with cheers, and some were moved to tears. Many called it the most thrilling moment of their lives. "I think the greatest thrill a person could have is to see the pope at the White House," said William Fitzgerald, a Michigan state senator. The pope was dogged throughout the day by small, scattered groups of demonstrators,. many of whom protested his opposition to ordaining women as Roman Catholic priests. On his way to the OAS, the pope glanced and waved at one group of 40 protesters who carried a banner reading, "Sexism is a sin, repent!' Something old, something new. Clarks Wallabee Weaver. Introducing Clarks Wallabee Weaver A great new shoe with all the cm fortn a fat oferfarmous $10 OFF BOTH 'MEN'S & WOMEN'S Tuesday October 9 Rackham 7:30 p.m. MASS MEETING A M Undergraduates Aud. 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