Bianks ri
NEW YORK (AP) - This week's wide-
spread increase in the prime lending
rate was long overdue, according to in-
dustry analysts, but they disagree on
whether it would stall recovery from
eeconomic recession.-
The prime rate, the base upon which
baiks calculate interest charges on
short-term business loans to their best-
risk custorners, was raised Monday to
16.5 percent by Citibank, the nation's
second largest bank, and No. 12
Crocker National Banlk, after holding
firn at 15.7 percent since last Dec. 1.
MOST MAJOR banks matched the
The Michigan Daily-wednesday, February 3, 1982-Page 7
" " 10
aise prime-lending rate
16.5 percent prime rate yesterday, in- they decline," Regan said at the FEDERAL FUNDS representing
cluding No. 1 Bank of America. Chase National Press Club. "I believe we'll billions of dollars in overnight loans of
Manhattan Bank, the third largest see the same pattern this time." uncommitted bank reserves, traded at
commercial bank, and No. 14 Marine CONSUMER loans are not based on more than 15 percent on Tuesday coin-
Midland Bank held their increases to the prime rate, but shifts in the prime pared with around 12 percent in early
16.25 percent. rate signals movements in the cost of December.
In Washington, Treasury Secretary consumer loans. Ninety-day certificates of deposit,
Donald Regan said yesterday that the "The prime rate is just a symptom of representing minimum deposits of
'rise in the prime rate was discouraging, rises in interest rates that have occurred $100,000, also jumped to more than 15
but suggested it {might signal a since early December," said Thomas percent from around 11.5 percent two
recovery ahead. Thomson, chief economist at San Fran. months ago.
"Recessionary history indicates that cisco's Crocker National Bank. Thus a hike in the prime rate "was
interest rates often bounce briefly Two interest rates that reflect bank way overdue," said Robert Sinche, an
higher once a recovery starts and then costs have climbed sharply in.the past economist at the New York investment
two months. firm of Bear, Sterns 7 Co.
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The Michigan Daily
Students cheer controversial author
GIRARD, Pa. (AP) Students cheered author
Studs Terkel wildly yesterday as he visited Girard
High School to defend his book "Working"against at-
tempts by some parents to have it banned for its
profanity.
"What astonishes, surprises, and disappoints me is
people picking up on something that's irrelevant,"
Terkel said during an assembly for the school's 650
students.
0 TERKEL RECEIVED two standing ovations from
majority of studenits, who appeared to support the
school's use of his best-selling book. He also an-
sweed questions, as students debated the use of
vulgar language. Earlier, he visited English classes.
Terkel said he used the profanity because "people
talk as people talk. Sometimes they use street
language:"
"When a student folks his arms and says 'I won't
read the book because there are bad words in it,' he's
kidding himself," he said.
JIM RICHARDSON, a senior who wants to be a
tool-and-die maker, challenged Terkel to read a
passage from the introduction in which a Brooklyn
firefighter uses profanity to describe his view of the
world.
Terkel read aloud, but substituted dashes for the
profane words.'
"What do you remember most-the words I
dashed, or the thoughts he said? I leave it to you,"
Terkel said to the student.
"I CAN'T SAY I never used the words," Richar-
dson said later. But he said, "It's something that
shouldn't be taught. It's just making it a little more
socially acceptable."
Terkel arrived from Chicago Monday night. He
said he was visiting Girard, a town of about 8,800
people on the edge of the factory city of Erie, Pa.,
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because he was curious and "a little bit angry."
"I want to find out about these hard-working
people," Terkel said. "The funny thing is that this
book is about them."
"WORKING," published in 1974, is an "oral
history" of conversations with ordinary workers who
discuss, in sometimes earthy language, the joys and
disappointments of their jobs.
English teacher Karolyn Nichols has used the book
in classes for vocational students since 1977.
A group of parents wants the Girard School Board
to ban the book from classes for 14 vocational studen-
ts. All eight students in one class have told the
teacher they object to the book, but six students in
another class have not joined the protest.
Terkel visited English classes during the morning
and was to address the 650-member student body at
an afternoon assembly.
Budget and enrollment reductions affect Ed School
(Continued from Page 1)
Allowing for a projected attrition
rate of 16 percent, the school, which
now has 65 full time and 16 part time
faculty members, would have 56 full
time professors by the 1987-88 academic
year, Wilson explained.
"Not only do we have to shuffle the
deck," Wilson said, referring to the
proposed consolidation .of programs,
"but we've got to play with less cards."
"WE HAVE been intending to re-
vitalize the school in order to
strengthen it, however at the same
time, we've been downsizing in the last
few years," Stark said. Last year the
school.had intended to hire four new
faculty members, but due to budget
constraints, hired only two, she added.
"'We would like to get better, even if
our faculty does become smaller,"
Berger said.
The school's office staffs are also
being reduced by attrition, Stark said in
Morris is
still cool
(Continued from Page 5)
in the bag we're doing because the ap-
proach I had was a little bit different,
and that made things more fresh.
There's a lot of things I copy from
myself. We make a video at each per-
formance, and I'll watch it, and I can
pick out things I like and want to use
again, or stuff that I don't like and want
tor change. So I just build up my own
persona from that.
Q. I want to hear another album,
when will it be coming out?
A. I'm looking towards spring for a
new record. We're cutting in Min-
neapolis; we have a studio there, but if
we have run .out of toys we will go to
L.A. and rent one of
those . .. things . .. to help us out. As
fas as production goes we're not slick;
we have a basic sound for each song,
and we go to the'studio and play it. We
leave things open to improvisation. We
go for it and put our hearts into it. The
next album will be different, but we are
still The Time, and we're still cool.
ANNOUNCING:
IValentine's Day
Page!
LAST CHANCE
FOR PLACEMENT!
her 1981-82 annual report to the school.
"It has been the practice during the
year not to replace retiring staff mem-
bers, but to consolidate workloads and
reassign current employees," she ad-
ded.
IT IS U4tCLEAR how all the con-
solidation and reduction in faculty will
affect the students, Wilson said. The
ratio of faculty to students will.
definitely drop, Wilson added, but this
decrease will only bring the ratio into
line with other academic units at the
University.
Barritt said the consolidation of
programs may necessitate a broad
review of course content. "I would
think that the course work would be dif-
ferent, (after the school's
reorganization and hopefully, it would
be. better," Barritt added.
The reduced number of faculty has
led some of the school's programs to
reduce the number of spots available
for undergraduate admissions, said
Harry McLaughlin, academic services
director. The result has been increased
competition for the available spots.
STUDENTS enrolled during the re-
structuring of the school, however,
most likely would not be affected, Stark
said. Students probably would have
their choice of the program they wish to
complete she added. The overall plan-
ned transition time is six years, she
said, which should give them plenty of
time to finish their programs.
The School of Education's enrollment
has dropped drastically over the past
decade. In 1970 there were 1,441 un-
dergraduate and 2,000 graduate studen-
ts in the school. As of fall 1981, there
were 641 undergraduate and 778
graduate students enrolled, a 24 per-
cent reduction from 1980.
The only program in which un-
dergraduate enrollment has increased
is Kinesiology (formerly called the
physical education program).'
McLaughlin said 309 of the 641 un-
dergraduates in the school are enrolled
in the Kinesiology program. "High
numbers of freshmen continue to be
admitted in physical education while
restrictions on enrollments in other un-
dergraduate programs continue. Con-
sequently, the school's undergraudate
population is more predominantly
composed of physical education studen-
ts than in the past," Stark said in the
annual report she issued in December.
ANOTHER PART of the school's con-
solidation plan is an upcoming attempt
to put a greater emphasis on
educational research, Stark said.
Training students to become teachers
curently takes up less than 30 percent of
the school's efforts, Stark said in art in-
terview last fall. Although research
grants to the school were down by
$617,000 last year, Wilson claims the
school is still "heading toward a more
research-oriented institution."
"One of the strengths of the school is
that it is at the forefront of research,"
said Associate Dean Berger. "The en-
tire University offers broad research
resources for our graduate students,
something other education schools
can'toffer," he continued.
The school also hopes to aid its
research programs by bringing
natinally recognized individuals to Ann
Arbor who specialize in resedarch, an
Executive Committee report stated.
ALTHOUGH they would be quick to
deny it, the school's staff are worried
about possible further budget cuts.
"Vice President (for Academic Af-
fairs) Billy Frye has looked at what
we're doing and he approves of the
method we're taking," Stark said. She
said rumors that appeared in the Ann
Arbor News last fall that the school
soon was to be slated for serious budget
reductions were untrue.
However, minutes of the school'°s
Dec. Executive Committee meeting
reveal that preparation for a broad
academic review has been discussed.
"The Execuive Committee than
discussed the possibility of the School of
Education being one of the units chosen
for a review and asked what other ac-
tivities the school should be involved in
as well as reorganization. Dean Stark
mentioned the improvement of disser-
tation quality, the improvement of
research training in the school, and the
ability to obtain data on our students
and faculty in a timely fashion as items
of continuing importance in a review,"
the minutes stated.
Barritt said once the school's
reorganizations plans are completed,
his concerns will be, "Have we done
things right? Have we saved money?
And will the administration support
us?"
Correction
In a story yesterday about the closing
of a fraternity in Amherst, Mass.,
"Delta Upsilon Delta" fraternity was:
incorrectly referred to as "Delta Up-
silon." The Daily regrets the error.
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Sailing -'15 min.
Golf- 17 min.
Running- (change your shoes)
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Hollywood Bowl - 45 min.
Universities- 30 min.
Surfing- 10 min.
Knotts Berry Farm - 45 min.
Rollerskating - (change your
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Universal Studios- 50 min.
Griffith Park - 45 min.
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San Diego Zoo- 180 min.
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