i Daily-Thursday, July 10, 1980-Page 7
Clay construction
Betty Gatliff uses modeling clay to reconstruct the skull of one of the nine unidentified murder victims of convicted
killer John Gacy, Jr. Photographs of the nine reconstructed heads will be released to the media next week in the hope
that they will be seen by someone who can identify the victims.
Unemployment msurance
strain due to recession
WASHINGTON (AP) - The nation's
unemployment insurance system -
still deeply in debt from the last
recession - is facing new financial
strains as another economic downturn
puts millions of Americans out of work.
States already saddled with loans
from the 1974-75 recession are coming
back to the federal insurance fund to
borrow more money. And the 45-year-
old system probably will have to
borrow from the U.S. treasury for the
second time in its history next year,
when benefits paid out are likely to ex-
ceed revenues from employer taxes.
FEDERAL OFFICIALS say there is
no danger that payments would be in-
terrupted for the estimated three-and-
one-half million Americans now
receiving regular insurance benefits.
But the financial problems are for-
cing states to raise employer taxes,
trim some benefits and limit payment
levels despite rising living costs.
In addition, the added burden on the
federal government may result in a
larger' budget deficit.
CURRENTLY, 12 states, the District
of Columbia, Puerto Rico and the
Virgin Islands owe the federal gover-
nment $4.3 billion. That debt would rise
to $4.5 billion for 13 states with the ex-
pected approval this month of pending
loan applications.
James Manning, a Labor Depar-
tment official who monitors the in-
surance system, said he does not an-
ticipate any further increase in state
borrowings until the beginning of 1981.
He cautioned, however, that any
prediction depends on uncertain
econonmic developments.
Meanwhile, the nationwide system,
which still owes the general treasury
$13 billion from the 1974-75 recession,
may have to borrow more money next
year, said Manning.
"I'D SAY THE chances are
somewhere between possible and
likely,' he said.
The unemployment insurance
system, established under the Social
Security Act qf 1935, remained self-
sufficient duri g its first 40 years by
building up reserves during good
economic times, when revenues ex-
ceeded outlays to tide itself over during
periods of high unemployment, when it
encountered temporary deficits.
But the deep 1974-75 recession sent
unemployment soaring to nine per cent,
the highest since the Great Depression,
which prompted creation of the system.
More than half the states had to borrow
money from the federal system to keep
paying benefits. State borrowing
peaked at $51/ billion, and the system
had to ask Congress for an emergency
loan of $14 billion to stay afloat.
Until the latest recession set in this
year, state borrowings had been cut to
$3.8 billion and the federal system had
repaid $800 million of its loan frpm the
treasury.
Unemployment, which had hovered
around six per cent during 1978 and
1979, jumped to 7.7per cent in June. The
government now predicts the rate will
peak at 8/2 per cent by year's end and
remain around eight per cent through
1981, as the economy stages a slow
recovery from the recession.
The rising national jobless rate also
will trigger soon the start of an exten-
ded benefit program, which is certain
to increase the strain on the system.
Brazilian
p igrims
killed in
attempt to
see pontiff
FORTALEZA, Brazil (AP) - A
throng of religious pilgrims, surging at
daybreak into a soccer stadium to get
good seats to see Pope John Paul II,
broke down a gate and trampled at
least three women to death, state police
said. It was a tragic replay of a stam-
pede of spectators that marred the
pope's visit to Zaire in May.
Police said many others were injured
in the rush of the crowd.
THE PONTIFF, who arrived here
five hours later, was not immediately
aware of the extent of the tragedy.
He came to this city of one million on
Brazil's hot northeastern Atlantic coast
to inaugurate a nationwide Eucharistic
Congress on the 10th day of a 12-day
journey through Brazil, the world's
biggest Roman Catholic country.
During the pope's appearance later, a
man ran toward the altar, knocking
down a local priest as he broke through
security lines. Ten security agents
grabbed the man before he could get
closer to the pope. It was not im-
mediately knownwhat the intruder had
intended to do.
Thousands of people had camped
overnight outside the Castelao
Stadium; which holds 120,000. Police
said that between 4 and 5 a.m, an im-
patient crowd broke down an unguar-
ded gate and crushed into the stadium,
running for the best seats. That was
when the tramplings occurred, the
police said.
, Gen. Assis Bezerra, the state public
security chief, said three bodies were
identified at the morgue and that
"many other people" had been injured
at the stadium.
ICH IGA
REP '80
Blithe
spirit
No8 Coward at his sophisti-
cated est. In an attempt to
learn about the occult, a
man gets far more than he
bargains for when the ghost
of his first wife returns from
"beyond" to complicate life
with his second wife.
July 10,12,16,18
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