Page 2-Tuesday, October 9, 1979-The Michigan Doily
Slump to follow prime rate hike
WASHINGTON (AP) - Banks soon
Internal MSA University will charge their best customers 15 per
committees: Committees: cent interest, forcing many businesses
* Communications * Communications,(4 students) to curtail biring, cut back production
* Academic Affairs " Civil Liberties and lay off workers, two leading
* Legislative Relations 6 University Council economists said yesterday following
" Student Organizations Board Board in Control of. new anti-inflation moves by the Federal
* Minority Affairs Intercollegiate Athletics Reserve Board.
* Student General Council m" University Relations "The board's actions guarantee a
recession," said Otto Eckstein, head of
Available at MSA OFFICE Data Resources, Inc. of Cambridge,
A3pplicationsA a Uni o Mass. "But the truth is we need it."
3909 Michigan Union ECONOMISTS AND bankers an-
YOUR STUDENT GOVERNMENT ticipate immediate upsurges in short
term interest rates. The prime rate that
GONG SHOW *
75th Anniversary of the Michigan Union
F RI OCT. 12-9:00PM
n Michigan Union Ballroom
(30d beers starting at 7:30)
banks charge their least risky
customers currently stands at 13.5 per
His forecasting firm has been predic-
ting a recession with 7.75 per cent
unemployment, compared with a
current 5.8 per cent rate. "The board's
actions risk something worse - unem-
ployment possibly in the eight per cent
to nine per cent range," he said.
"The Federal Reserve Board ran out'
of options. No matter what we do, we'll
get a recession," said Michael Evans of
the Washington-based Evans
Evans said the sweeping tight-money
moves adopted Saturday may yet prove
inadequate in the fight against ram-
paging inflation. "The credit screws
may have to be tightened further," he
ECKSTEIN, WHO believes the nation
has yet to enter a recession, welcomed
the board's moves. "Bank loans have
been growing at a 15 per cent annual
rate. They really cannot grow at more
than five per cent in the months ahead.
"That's going to require a higher
prime rate and pressure on the banking
system by starving them of reserves,"
the economist said.
That is the hope of the board, which
voted unanimously to increase its bank
lending rate, called the discount rate,
from 11 per cent to a record 12 per cent
IT ALSO ALTERED the way it con-
trols the availability of credit, making
it more difficult and expensive for
banks to obtain funds they then can
Evans said the prime rate should
reach 15 per cent sometime next mtnth
and unemployment will rise rapidly as
early as December. "Until then,
economic news will not support a
recession," he said.
THE UNEMPLOYMENT rate in Sep-
tember unexpectedly declined, a factor
economists say gave the Federal
Reserve Board an opportunity to raise
interest rates and clamp down on ex-
Eckstein said the board's actions will
force many businesses to change their
inventory and hiring policies.
While consumers cut back purchases
in recent months, most businesses have
continued to build up inventories and
hire more workers, Eckstein said.
BUSINESSES HAVE held on, he ad-
ded, because they were able to obtain
bank loans to finance inventories anq
keep workers on the job.
"Now the credit may not be there,'
Eckstein said. "Inflation is getting
worse and the Federal Reserve Board
will now forcibly bring an end to inven;
tory buildup and new hirings."
Eckstein said manufacturers of
machinery and- long-lasting consumer
products would be the first to feel the
credit pinch. And workers in these m
dustries are the most vulnerable to
layoffs, he added.
Federal Reserve Board Chairman
Paul Volcker said the tight-money
moves are not designed to shut off
credit entirely, but should eliminate the
Eckstein said: "There's no way to
know for sure what will happen tp
credit. We are about to run an ex-
20 AWARDS PRESENTED:
(Continued from Page 1)
oseph Sax, professor of law; and Allen associate curator at the Herbarium and
hields, math professor. professor of botany; Charles Eisen-
The $1000 award is given to faculty drath, assistant professor of jour-
embers who demonstrate nalism; William Folk, biological
distinguished achievement in chemistry professor; Biology Prof.
aching, research, publication, John Pringle; and Bruce Wilkinson,
reative work in the arts, public ser- associate professor of geology and
ce, and other activities which bring mineralogy. The $750 award is given to
stinction to the University." junicir faculty members for their im-
Recipients of the $1000 University pact on student life.
ress Award were journalism, The AMOCO Foundation Good
rofessor William Porter and Rhoads Teaching Award, presented to senior
[urphy, professor of geography and faculty members, was given to biology
sian studies for adding "distinction to Professor John Allen; Frithjof
ress list." Bergmann, professor of philosophy;
English Prof. James Gindon, and Sybil
THE FACULTY Recognition Award Kein from the English Department at
as presented to William Anderson, Flint; Eugene Krause, math professor;
and Judith Reitman, associate
professor of psychology. This award of
$1,500 is given for "excellence in un-
The Josephine Nevins Keal
Fellowship is presented to assist
women faculty at the University in
their study and research.
In addition, the Class of 1923
Memorial Teaching Award was presei-
ted to English Prof. Steven Lavine
because of his "distinguished con-
tribution to undergraduate teaching."
H. Glenn Bixby, chairman of the
Major Gifts Committee of the Univer-
sity Development Council which funds
the majority of the awards introduced
the recognized faculty members.
New organization lauds labor leaders
(Continued from Page 1)
that stemmed from his involvement as
a labor organizer and agitator.
President Woodrow Wilson, led
thousands of people in a futile effort to
have Hill's case reconsidered. Hill was
executed in a Utah penitentiary in 1915.
THIRTY THOUSAND people mar-
ched in Hill's funeral procession in
Chicago, and since then, many more
thousandsahave attempted to clear his
name in the controversial case.
But it was his music that stirred Net-
work APA organizers to hold their
founding celebration on Sunday, Joe
Hill's 100th birthday. Hill wrote songs
which were sung by IWW workers to
assist them on strikes, and to offer
them moral support.
"If a person can put a few cold, com-
mon sense facts into a song to dress
them up in a cloak of humor to take the
dryness out of them," Hill once said,
"he will succeed in reaching a great
number of workers who are too unin-
telligent or too indifferent to read a
pamphlet or an editorial on economic,
-, x I , I - . -7- .- - -A .;Nl . w, 1- , * v,,!, ,, - 1. 1, " ,
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If you're a junior or senior with at least a 3.0 average, you can
spend the fall on Capitol Hill earning 16 credits and learning
what practical politics is all about.
You'll work with members of Congress, government agencies,
and perhaps see Washington-and yourself-in a totally dif-
Filing deadline is November 1. To apply, or for further
information, call (617) 353-2408, or write:
Boston University Washington Legislative Internship Program,
College of Liberal Arts-Room 302, 725 Commonwealth
Avenue, Boston, Massachusetts 02215.
Boston University admits students regardless of their race, color, national origin, religion, sex,
age, handicap, and veteran status to all its programs and activities. A copy of the University's
complete policy on discrimination is printed in the University catalogue and may be obtained
from the Affirmative Action Officer, 19 Deerfield Street, Boston, MA 02215
MOST OF the IWW songs were set to
popular melodies and hymns of the
early 1900's, explained Eric Glatz, who
opened the musical show by playing a
half dozen union songs, several of them
written by Joe Hill.
"The IWW had to compete with the
Salvation Army on the streets," sai
Glatz. So songwriters like Joe Hill
made up lyrics to existing melodies that
"were a lot more fun to sing, and less
propagandizing," he explained. GatT,
a full-time steel worker and a part- ire
musician, entertained the singing
crowd with tunes like "Casey Jones, the
Union Scab," "Ragtime Millionaire,"
and "Hallelujah, I'm a Bum."
The tribute to Hill was followed by p
play entitled "The Furies of Mother
Jones," which was performed by a 12-
member troupe from Boston, the Little
Flags Political Theatre group. The play
was based on the history of Mother
Jones, a labor organizer who fought for
the rights of the working class. Jones
was active in the labor-movement past
her 90th birthday.
fHE THEATRE group is directed by
THE MICHIGAN DAILY
* (UISPS 344-900)
Volume LXXXX, No. 29
Tuesday, October 9, 1979 -
is edited and managed by students at
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