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Show Page 12b FNMA Yields Reverse in Upward Trend Defense Spending Gives After declining for seven mitments on the conventional governmentWay to Income Security straight auctions, yields tion yesterday, FNMA issued mortgages at an moved - In auc-back- ed aver- - up slightly as the age yield of 9.060, which Federal National Mortgage converts to an average price of Association issued $216.9 97.84 for 8 34 percent FHA million in h commitVA mortgages. (The average ments to purchase both gover- in the auction was previous nment-backed and conven- 9.044). The range of accepted financed home mort- bids tionally yesterday was 9.042 gages. (97.97) to 9.122 (97.42). Oakley Hunter, Chairman FNMA received 343 FHAVA of the Board and President of totaling $229.9 million FNMA, said the corporation and accepted 244 bids, includ- issued $171.9 million in com ing 168 noncompetitive. four-mont- . $45.0 million in four-mont- h commitments at an average yield of 9.148, up from 9.141 on February 23. The range of accepted bids was from 9.125 to 9.722. FNMA received 174 conventional bids totaling $75.4 million and accepted 121 bids, including 80 noncompe-bid- s titive. The next auction will be March 22, 1976. continued from page 3b the national debt as may be different if duals and institutions in Utah the expenditure decisions receive back in Federal inter-wer- e made locally rather than est payments. Thus, additions by Federal officials in Wash- - to the debt and resulting increases in interest costs tend ington. Utah suffers a loss when to take money out of the State. As an example, the study Federal expenditures are finshows anced through added debt. that the indicated FedAccording to the Foundation eral budget deficit of $76 report, Utahns pay out more billion for the 1976 fiscal year than twice as much in Federal will result in a net outflow of taxes to meet interest costs on $12 million a year from individuals and business firms in indivi-prioriti- Utah. The Foundation report also indicates that while Federal programs and actvities may have a stimulating effect on local economies, they often prove to be liabilities to state and local operations. This is especially true in programs that create a large increase in Federal employment but no corresponding increase in taxable wealth and income in the private sector of the economy. Previous studies by the Utah Foundation have shown that the typical family in Utah of the pays only about one-ha- Jk lf taxes needed to finance essential state and local services (such as schools, sanitation, roads, water, police, and fire protection, etc.) used by the family. The other half of the cost for such services typically is borne by taxes paid by business and industry. The report concludes that Federal programs which do not stimulate growth in. the private sector are likely to result in reduced local services or higher taxes to support such services. Owner Wins Compensation in Pot Case Richard McDonough, owner of the Marijuana Menagerie, has been compensated for damages suffered 'When Salt Lake County police arrested him and confiscated his merchandise. McDonough, who imports marijuana leaves encased in plastic from South America, said he has settled for $780.00 in damages. He was arrested in August, 1975. For further information plea$e call Jame$ Barrett , Chairman. Area Code 208 356-4229. Residential Sales Report continued from page 10 Mortgage interest rates are expected to continue to soften during the year, as lenders have solved the 5 liquidity crunch and have more funds available. However, the greatest percentage of monies made available in Utah will be for single family 1974-197- . es First Lombard Corporation Investment Bankers Salt.Lake City Idaho Falls residences, and the potential condominium developer may be completely out of luck. The forecast, then, is generally favorable, looking toward a continued steady growth. |