COMMITTEE MEMBERS I NEEDED 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 Admission $1 (30d beers starting at 7:30) banks charge their least risky customers currently stands at 13.5 per cent. 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 Economics. 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 said. 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 lend., 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- cessive credit. 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 "froth." Eckstein said: "There's no way to know for sure what will happen tp credit. We are about to run an ex- periment." 20 AWARDS PRESENTED: J SI m te cr vi di P P A P w Outstanding faculty (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- dergraduate instruction." 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. honored 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, " , Student Newspaper at The University of Michigan I IFE r-.- ------ WRITE YOUR AD HERE! ------ ---1 "-.----..---CUIP AND MAIL TODAY!0------------j USE THIS HANDY CHART TO QUICKLY ARRIVE AT AD COST Wards 1 2 3 4 5 add. 0-14 1.70 3.40 4.60 5.80 7.00 1.00 glaeidct Plas ini 15-21 2.55 5.10 6.90 8-.70 10.50 1.50 where this ad r to run: 22-28 3.40 6.80 9.20 11.60 14.00 2.00 t rent for sale 29-35 4.25 8.50 11.50 14.50 17.50 2.50 help wanmed 36-42 5.10 10.20 13.80 17.40 21.00 3.00 p*e""aa 43-49 6.80. 11.90 16.10 20.30 24.50 3.50 et Seven words per line. Each group of characters counts as one word. Hyphenated words over 5 characters count as two words-This includes telephone numbers. Washington Legislative Internship rogram 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- ferent light. 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 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 (617/353-4478). science. 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 Maxine Klein. THE MICHIGAN DAILY * (UISPS 344-900) Volume LXXXX, No. 29 Tuesday, October 9, 1979 - is edited and managed by students at the University of Michigan. Published daily Tuesday through Sunday mornings during the University year at 420 Maynard Street Ann Arbor, Michigan 48109. Subscription rates: $12 Septem- ber through April (2 semesters) ;$13 by mail outside Ann Arbor. Summer session published Tuesday through Saturday mornings. Subscription rates: $6.50 in Ann Arbor; $7.00 by mail out- side Ann Arbor. Second class postage paid at Ann Arbor, Michigan. POST- MASTER: Send address changes to THE MICHIGAN DAILY, 420 Maynard Street, Ann Arbor, MI 48109.