Grand old grad
Edward Scheffler, 73, of Pipersville, Pa., wears a cap and gown during graduation ceremonies at Central Bucks
West High School in Doylestown. He had decided to go back to high school after being out more than half a century
and received his diploma Thursday night.

I


Industrial production records

U.S. auto
sales fall
20.5%
lower than
last June
DETROIT (UPI)-Sales of U.S.-built
cars in early June plunged 20.5 per cent
below last year's depressed levels,
reaching the lowest point for the period
since 1961.
But the industry's performance,
spurred by rebates and other
promotions, was up slightly from ex-
treme depths reached early in
May-leading some analysts, to con-
clude the industry may have reached
the bottom of its current sharp down-
turn.
SALES OF U.S.-BUILT cars now
have been severely depressed for eight
consecutive 10-lay selling periods,
reaching a low point of 41.8 per cent
below last year in early May.
Even if the industry has bottomed
out, analysts can shed little light on
when an upturn might begin.
One Big Three sales analyst said crs
are being scrapped now almost as
quickly as they are being sold.
"I'VE NEVER seen that last very long,"
the analyst said.
Reports yesterday from U.S.
automakers showed June 1-10 sales of
140,951 cars, down 20.5 per cent from
177,233 last year. In the 1979 perio, the
industry was heading into the year-long
slump that preceded this spring's sales
collapse.
General Motors Corp. sales were off
18.5 per cent on volume of 83,387; Ford
Motor Co. declined 19.8 per cent on
sales of 37,236 units and Chrysler Corp.
was off 35.2 per cent on 13,418sales.
. Volkswagen of America reported it
sold 3,510 U.S.-built Rabbits, down 9.2
per cent. American Motors Corp. sales
of U.S.-built cars were estimated at
3,400 units, down 13.2 per cent from last.
year. AMC reports sales only at the end
of the month.
rer prime
ite again
Banks also are trying to recoup from
the profit squeeze they experienced
when rates accelerated.
"THERE'S BEEN a squeeze on profit
margins recently, but it's also very
clear there's been a long-time erosion
in banks' financial position," economist
Anthony Boeckh, editor of the Mon-
treal-based Bank Credit Analyst, said.
"Banks are having a very difficult
time keeping their capital base up in an
increasingly unstable economic en-
vironment," he said.
The prime is the rate banks charge on
corporate loans to their blue-chip
customers, while smaller businesses
generally pay at least one percentage
point more. The prime does not apply to
rates on consumer loans but is con-
sidered a key barometer of trends in all
kinds offiterstrttes

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largest slump in five years
From UPIand AP the election-year recession could prove Durable
WASHINGTON - U.S. industrial much more severe than President Car- built to
production slumped more in May than ter or his economic advisors have years-de
at any other time in five years as the forecast. seo c
shadow of recession began spreading William Cox, deputy chief Commerce theyLing
across all sectors of the economy, the Department economist, was asked if carpeting.
government reported yesterday. larger drops were expected. Non-du
The Federal Reserve Board said the "Iwould doubt that, simply because I 0.7 cenI
combined output of factories, mines, continue to believe that we are seeing business c
and utilities plunged 2.1 per cent last the worst of this recession in terms of business
month. It was the fourth straight month the rate of contraction at present and cent.
of decline and came on the basis of a that we are likely to see at least a
revised 2per cent drop in April. beginning of a bottoming in the
"REDUCTIONS IN output occurred recession in the third quarter," he
in all major makreting groupings, and responded.
were particularly sizable for HOWEVER, JOBLESSNESS in May
automotive products, home goods, con- rose to 7.8 per cent of the workforce, or
struction supplies, and durable goods well above the administration's predic-
materials," the report said. tion of no more than 7.2 per cent unem-
The monthly decline in output was the ployment by year's end.
largest since a 2.2 per cent drop in "Obviously, this is not going to be a
February 1975, when the country was short and mild recession," said
struggling through its worst economic Lawrence Chimerine, chief economist NEW YO
disaster since the Great Depression. for Chase Econometrics. "It's not just widespread
At the end of May, the industrial autos and housing anymore. posting an
production index stood at 145.5-its Everything's being hit. cuts yester
lowest point ina year. "And we've got quite a few months to ted further+
YESTERDAY'S REPORT suggests go before this is over," Chimerine ad- Many of
ded in a telephone interview from Lake regional b
The CONSER VA TOR Y Tahoe, Nev. rates to 121
ALAN GREENSPAN, former summer,'
STEAKS economic advisor to President Ford, banks took
are all said in New York it appears the and held th
U.S. Grade A economy "won't bottom out" until after
Choice. the fall election. BANKS
cent rate ea
the peak of2
REDUCED COVER Banks ha
P ECHARGES business le
Attuned to your good taste sharply low
M-sat. 11-9 516 E. Liberty funds. For
94xttt oj paying hig
994-5360} S, d Ch nr deposit of si

consumer goods-products
last more than three
cliend 4.9 per cent for the
nth in a row. Besides cars,
de appliances, furniture and
rable goods-including
food and gasoline-dropped
t in May, while production of
equipment was off 1.2 per
anks low
ningnrai
From AP and UPI
RK - Banks responded to a
d drop in interest rates by
other round of prime rate
'day, while analysts predic-
drops in the key lending fee.
the nation's medium-size
anks lowered their prime
per cent, the lowest since last
while most of the biggest
a more cautious approach
eir rates at 12.5 per cent.
HAD been quoting a 13 per
arlier this week, down from
20 per cent two months ago.
ve been slow to drop their
nding rates into line with
er costs of other short-term
one thing, banks still are
h rates on certificates of
xmonths and longer-'?.

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