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Show WESTERN AMERICANA Diversity of utah Serials Order Department University of Utah 84112 Salt Lake City, Utah LIBRARIES APR 2 4 1974 .SERIALS OttDER VOLUME 1 NUMBER 3 DiPl SALT LAKE CITY, UTAH Utah Foundation Reports: city-count- imposed by the consolidation. In order to correct the problem, the Governor has suggested that the present 2 constitutional debt ceiling applying to counties be raised to a compromise figure of 5 in consolidated counties. This would raise the debt limit in Salt Lake County from $70.5 million to approximately $176 million, which still would be substantially lower than the present combined limits of the separate units to be consolidated. To make such a change, an amendment to the state constitution would be required. The Governor has indicated that he might call "a very short probably in June" special session to consider the matter. If a resolution vote of is approved by a state in the those elected to each house such a special session, legislature at the proposed constitutional amendment to change the debt ceiling would be submitted to the voters at the November. . 1974, general --elections. This would oe necessary to cwar up the constitutional debt limit question before the Salt Lake County voters decide the fate of the proposed charter in the March, 1975, two-thir- ds Volatility has been the hallmark of the silver market ever since the U.S. efforts in mid-196- 7. Against the background of a strong A separate but related problem involves the probable difficulty in securing voter approval for future bond Issues that might be considered under the proposed new city-coun- ty charter. Foundation analysts point out that bond issues would have to be approved by all of the voters in the county if local units are consolidated. As a result, some projects which would be of only localized interest might have more difficulty securing the countywide support needed for their support. Colonial Ford Appoints New Used Car Manager short-ru- n price uptrend, movements have been exceedingly erratic, largely because of the dominant influence of speculative faclong-ter- m tors rather than industrial sup- plydemand considerations. During the period in question, trading in- impact on world-wid- e petroleum-crisi- ty special election. Supreme Court Decisions and balance-o- f payments problems created a distrust of currencies which sent speculators fleeing towards precious metals. The result was a speculative bubble which brought about a peak quotation of $6.70 an ounce in late February 1974. But with the suspension of the embargo, prices slumped within several weeks' time from $6.70 to $4.98 and after a brief recovery, dropped further this week to $4.64 an ounce. -- creased dramatically on the New York, Chicago and London exchanges. From the original base of $1.29 an ounce, 7 and prices doubled between lose all of to that gain Bubble only bursting? by late 1971. Prices then soared to a Is the bubble again bursting, as it stratospheric $6.70 an ounce hi the did during the 1968-7period? Cerspeculative orgy of early 1974 before tainly the fundamentals industrial retreating to the present level of $4.64 consumption and mine production an ounce. do not appear to support the recent Initial price surge stratospheric level of prices. Massive price fluctuations began More importantly, higher prices to develop in July 1967, when the U.S. should stimulate an increased supply Treasury halted unlimited sales to from secondary sources melted coin domestic industrial users at the old and scrap, private hoards and governmonetary value of $1.29 an ounce and ment stocks. The melting of announced that it would sell its silver coins is now increasing, remaining silver stocks in small in view of the faster rise in silver prices than in coin futures. Scrap recovery is weekly amounts at the going market price. responding to higher prices in the the decade, same fashion; for example, leading to Throughout preceding world mine production had lagged far a greater use of microfilm for behind industrial demand, so that the negatives as a means of conserving exdifference had to be covered mainly by pensive silver. sales of silver from the U.S. Treasury Higher prices along with economic roughly 2 billion ounces in alL As difficulties, may entice India to part these supplies dwindled and the with some of its legendary hoard of Treasury's eventual withdrawal from perhaps 3 billion ounces of silver. the market became increasingly cerAnother possible source of supply is the U.S. strategic stockpile, should tain, silver users and investors concluded that a silber shortage would be Congress authorize the sale of 117 almost inevitable. Their belief was million ounces from that source. All of these factors suggest a downsupported by the effecte of new silver legislation, which set off a rush by turn in silver prices this year. But as in silver certificate holders to turn in the past, their impact could be offset 8 their paper money for silver by a by monetary uncertainties, worldwide the of effects a inflationary pressures, and other indeadline, and by fluences favoring an upsurge in which copper strike, forced the shutdown of nonferrous speculative demand. After all, silver's metals refineries and seriously reduced past history has shown that the normal refinery supplies of silver. psychology is often a more potent influence on prices than basic supply on were Upward pressures prices exacerbated by the worldwide currenand demand factors. . which cy turmoil of 1967-6culminated in a flight from the devalued British pound and the weakening American dollar into precious metals. British and American citizens could not legally own gold, but In they could hold silver, so many turned to the gleaming white metal as a safe store of value. 2 ILegals 2 Slump then speculative boom 2 Confirmation of Sale Surprisingly, however, prices then turned around and declined for the New Partnerships 2 next 3W years, in the face of continued 2 ; Suits production deficits, prolonged worldSmall Claims Court 6 wide inflation, and the continued Divorces 6 weakness of the dollar. Births 6 This and other factors helped create 7 Licenses Marriage a wave of speculative liquidation Third District Court 7 which fed upon itself with each new failure of the market to live up to price 8 Supreme Court Decisions New Corporations . . 9 expectations. Many silver-markWater Service 11 speculators, like their counterparts in the stock market, had bought on 12 Bankruptcies margin during the earlier boom, 12 Murray City Power sometimes with margins as low as 20 12 Business Licenses City percent. 13 Court Murray City The 1972-7economic boom led to a 13 Sale Bankruptcy brisk recovery in the silver market. Trust 13 Deeds Prices soared to $3.28 an ounce by late 13 1973, largely on the basis of a Warranty Deeds annual increase in U.S. conGeneral Attorney Opinions 14 sumption over the 1971-7- 3 period. But Claim 15 Deeds Quit the price rise also was fueled by the 15 Mortgages heavy demands of speculators seeking Liens 16 protection against an assortment of Business 16 Licenses . County of universal commodity infears New . 16 Permits County Bldg. flation, of dollar devaluation, and Uniform Commercial finally, of the Arab ofl embargo. The Code Filings . 16 embargo and the related upsurge in prices pushed prices upward mid-196- mid-196- 8, 1 nt ' -- mid-196- nine-month-lo- ng city-count- 8, Mr. Charles W. "Chuck" Lombard See details page 8 ' Taxpayers Ask IRS A. If the calculator has a useful life of more than one year, its cost is usually recovered through depreciation deductions over its useful life. If the calculator has a useful life of one year or less, you may deduct the entire amount as an expense or as an expense paid in connecdeductible? tion with the determination of tax. A. Yes. You may deduct up to $50 Q. Is it possible after April 15 to get an extension of time to file an income ($100 on a joint return) for contributions to political parties, candidates tax return? and campaign committees. Or you can A. In the typical case, the taxpayer take half of your contribution as a must have taken some action on or credit against your tax up to $12.50 before April 15 to qualify for an ex($25 on a joint return). tension. To obtain an automatic IRS Publication 585, "Voluntary extension, a taxpayer must Tax Methods to Help Finance Political file on or before April 15 a Form 4868 Campaigns," explains the circumalong with an estimated tax payment. stances under which a deduction or Hardship extensions, filed for on Form credit for a contribution is more ad- 2688, should also be requested on or vantageous. Copies may be obtained before April 15. free of charge from IRS district ofHowever, U.S. citizens not in the fices. Bulk quantities may be pur- U.S. or Puerto Rico on April 15 and chased from the Government Printing military personnel similarly situated Office in Washington, D.C. are allowed a extension of Q. I bought a pocket calculator for time for filing without any action on $150 to use in figuring out my taxes their part. All they have to do is attach and in connection with my investment a statement to their return showing activities. Do I deduct the cost of the that they were outside the U.S. and calculator or do I have to capitalize ttt Puerto Rico on April 15. income-producin- g two-mon- two-mont- h th Mr. Charles W. "Chuck" Lombard has been appointed to the position of Used Car Manager of Colonial Ford, 39th South and State Streets, Salt Lake City, it was announced today by Mr. Marshall Pease, Vice President and General Manager of that firm. Mr. Lombard was previously in a similar position with another dealership in Salt Lake. Mr. Lombard, a 28 year veteran in the automotive field spent 12 years in Seattle, Washington with several dealerships in the positions of General Sales Manager, Truck Manager, Fleet Sales Manager and , Used Car Manager. He also spent a year in Detroit with the Chevrolet Motor Division of General Motors producing Management Training Motion Pictures for use by that organization throughout the country. In his new capacity, Mr. Lombard will supervise a staff of nine salesmen in the Used Car Department of the new One Million Dollar Automotive Facility. With consideration of the larger area afforded by the new faculty, Mr. Lombard stated that he intends to expand the selection of Used Cars considerably. "We will have an unprecedented selection of all types and makes of cars," he, said. Mr. Lombard and his wife, Clara, reside in Salt Lake. They have two sons, Frank and John. Frank is married and resides in Spokane. s inflation X-ra- City-Count- y This column of questions and answers on federal tax matters is provided by the local office of the U.S. Internal Revenue Service and is published as a public service to taxpayers. The column answers questions most frequently asked by taxpayers. Q. Are political contributions tax even in the face of the rising strength of the dollar. Silver prices soared Government ended its prolonged nonetheless, because the price-stabilizati- on -- city-coun- MONDAY, APRIL 22, 1974 Volatility Hallmark of Silver Market Constitutional Amendment Might Be Required to Clear Up Debt Limit Question A constitutional amendment might be required to clear up the legal un certainties concerning debt limits in counties which consolidate local units under a 1973 law. This was pointed out in a research study prepared by Utah Foundation, the private research organization. One such plan for consolidating twenty-fiv- e local units of government within Salt Lake County already has been drafted and will be submitted to the county voters on March 4, 1975, for their approval. According to the Foundation analysis, "a prevailing legal opinion holds that the combined debt limits of the various governmental units that make y up the proposed consolidated would be reduced government to that applying to the county government alone." Thus, in Salt Lake County where the combined debt limit of the various units that would be con- -' solidated now totals about $335 mil- lion, would be reduced to nnroxi- matery $70.5 million under the present terms of the Utah State Constitution if the merger should take place. Foundation analysts point out that the various governmental units that would be consolidated into the proGovernposed Salt Lake ment had an outstanding genera) obligation debt of $47,349,000 at the end of 1973. In addition, authorized but unissued bonds of Salt Lake City and the Salt Lake County Water Conservancy District total another $19,500,000. This makes the combined issued and authorized debt of the various units equal to $66,849,000, or only about $3.6 million below what the debt limit would be for the proy posed new consolidated government. Salt Lake County is also considering a number of other debt measures which might be submitted to the tor ate this year. If these debt measures are approved, the outstanding indebtedness of the various units in the county could easily exceed the maximum debt limit that would be h This Issue: ... et .... 3 nt oil-imp- y |