The Michigan Daily-Thursday, July 16, 1981-Page 5
S&L 'S PAYCHECK CAN'T COVER ITS BILLS
S&Ls in financial squeeze
From the Associated Press
The nation's savings and loan
associations are in the same
predicament as a family with a
paycheck that won't cover the bills. The
interest the S&Ls are earning on their
loans is less than the interest they have
to pay on deposits.
A big part of the problem, for families
and bankers, is inflation. Inflation that
cuts buying power and boosts interest
rates. The families and the bankers
have to earn more or spend less.
"BREAK THE back of inflation,"
says Rollin Barnard, president of the
U.S. League of Savings Associations.
"That is the most important thing that
anybody, including God, can do," Bar-
nard said in an interview yesterday.
Richard Pratt, the chairman of the
Federal Home Loan Bank Board, said
Tuesday that 80 percent of the 4,700
federally chartered savings and loan
associations in the country are
operating at a loss. He said one-third of
them are "not viable" under present
economic conditions. If things don't
get better,-they won't survive.
The squeeze on the S&Ls - which ac-
count for almost half all residential
mortgage lending - has put a squeeze
on the housing industry. The S&Ls have
less money to lend, and the money they
do have is so expensive that many
would-be homebuyers can't afford it.
THE BANK board, which regulates
the S&Ls, is proposing a number of
changes in the law to make it easier for
the thrift institutions to compete for
money and customers by offering new
services.
The new customers - and the new
deposits - won't do much good,
however, if the S&Ls have to pay more
to attract them than they can charge on
loans. That's where something called
the "all-savers certificate" comes in.
The interest would be exempt from
federal income taxes, up to a maximum
of $2,000 for a married couple. The
current income tax deduction of up to
$400 for interest and dividends would be
cut to a maximum of $200 and would be
limited to dividends only.
Financial institutions could pay less
than they do now on many deposits.
Savers - particularly in high tax
brackets - would keep more of the in-
terest they earn.
Man caught
in Florida
charged with
selling secrets
(Continued from gagee 3
medium build, appeared unshaken as Betz argued for
high bond at the U.S. District Court session, saying
money and escape plans were ready to help Helmich
flee prosecution.
"This individual is an extreme risk to flee the
charges alleged against him," Betz told U.S.
Magistrate Howard Snyder, who set the bond. "Our
investigation has determined that there were funds
put away for his use outside the United States . . ."
"THIS DEFENDANT received certain honors, in-
cluding the rank of colonel in the Soviet Army," Betz
said.
Helmich, telling the magistrate that he was broke,
asked for and received a court-appointed counsel.
Arraignment was set for thiscmorning.
The indictment accused Helmich of selling the
Soviets secret information, including parts and ser-
vice manuals for American military coding equip-
ment known as the KL-7 Cryptosystem which he
operated while an Army warrant officer from 1954 to
1966.
MOST OF THE deals allegedly took place while
Helmich was based in Paris, the indictment charged.
But as late as August 1980, Helmich received money
from the Soviets "in consideration of his com-
municating, delivering and transmitting documents,
instruments and information" to hide the conspiracy
from American authorities, the charges said.
The indictment said that while Helmich worked in
the Army's Signal Corps at Paris in January 1963, he
contacted Russian agents at the Soviet Embassy
there and delivered classified information he had ob-
tamned while on duty as a warrant officer.
He was trained in "espionage tradecraft, including
photography, secret, writing and methods of clan-
destine communications," the indictment said.
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MEMORIAL SERVICE for
CHEN WEN-CHEN, Ph.D.
LATE ASSISTANT PROFESSOR OF STATISTICS OF CARNEGIE MELLON UNIVERSITY
Time:
Saturday,
July 18, 1981
1 P.M.
Place:
Memorial
Christian Church
Tappan and Hill Streets
(U of Michigan Campus)
Ann Arbor, Michigan
Born in Taipei, Taiwan.
Graduated from National Taiwan University in 1972 (B.S. In Mathematics).
Came to University of Michigan in September 1975.
Completed Ph.D. in Statistics, University of Michigan in 1978.
Remark by DR. BRUCE HILL, U-M statistics professor and chairman of Chen's dissertation committee: "The most outstand-
ing student I've seen in 21 years."
Appointed Assistant Professor of Statistics, Carnegie Mellon University in September 1978.
Visited Taiwan on May 20, 1981. Scheduled to return to U.S. on July 1, 1981.
Detained for interrogation by Garrison Command (secret police) of Nationalist Chinese Government in Taiwan for 12
hours on July 2, 1981, only hours before his death.
Found dead on the campus of National Taiwan University on the morning of July 3, 1981.
Local newspaper reported that he was probably murdered.
Statement by DR. RICHARD CYERT, President of Carnegie Mellon University: "All of the circumstances point to a
situation in which Chen was killed by the Nationalist Chinese because of his political views."
Sponsored by Formosan Association for Human Rights, Michigan Chapters.
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