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Show Central Utahns Outspending| By BRUCE KING Herald Steff Reporter Central Utahns are spending more than they are making, according to Clyde Ormond of Job Service in Provo Both demand (checking) and time (saving) deposits have decreased for two months straight, the longest period ever, Ormondsaid. Inflation is likely a reason. ‘The trend cannot continue long Families either will have to decrease their spending or send more membersinto the labor force to help support the family, Ormond continued Inflation already has lowered the standard ofliving in Central Utah, and it has encouraged more people a a. SoSSa: fo apply for food stamps, other public officials reveal. “T am alarmed by the declining deposits,” Ormond Said.‘A decline in savings tends to meana decline in investments,and a decline in investments signalsa decline in economic growth.It all reflects the impact of inflation.” Ormond is the labor market analyst at Job Service. He believes inflation also is one reason for fewer housing starts this year and for increasing numbers of working women. He believes inflation is not the sole factor behind the economic con ditions, though. Other factors may be high interest rates, pleasure oriented lifestyles and Christmas buying, he said. f f T've never seen both demand and time deposits decrease at the same time for a two-month stretch,” Or- mondsaid. ‘‘Inflation is obviously a major reason “Christmas buying may be a reason, too, but I've never seen decreasing deposits like this during other Cnristmasseasons. and I have worked at Job Service for six years.” The inflation rate this past year was about 12.6 percent, the highest since the end of World WarI! when the inflation rate from 1944 to 1946 averaged about 20 percent each of the three years, Ormond indicated Housing starts are down approximately 26 percent from last year, he inued. High interest rates may be a major reason for that decline, however. The numberof womenin the labor force has increased considerably since 1970, Ormond revealed. Currently, about 50 percent of the women16 and older in Utah County and throughout the state are fulltime workers in the labor force This percentage equals the national average “I believe many wives go to work to enable their families to enjoy boats and campers that families purchased during less inflationary years,’ Ormondsaid. ‘In order for many families to maintain their standardsofliving, many wivesfeel they have to go to work.” Glee Zumbrennen, immediate past president of the Provo Bank customers making more withdrawals than deposits, Job Service expert says. Chamber of Commerce,said inflation has forced almost everyone to Healso revealed the Provo-Orem metropolitan area has a lower average salary per workerthan the average salaries in a majority of other metropolitan areas in the country. At the sametime, the area has bigger families than most other metropolitan areas in the country. The federal minimum wage spurs review their spending habits. “Our standard ofliving is slowly deteriorating,’ he said. ‘‘Everytime prices rise, fewer people buy.” Zumbrennen noted inflation is squeezing Central Utahns’ disposable income, or entertainment money. inflation, Zumbrennen claimed. it forces up base wages, which in turn forces up wages at all company levels. This added labor cost increasesinflation. Richard Bradford, manager of the Utah Valley Industrial Development Association, said wages have not kept up with inflation for the most part. “Mostindustrial jobs havecost ot living pay raises,but utilities, banks and other businesses don’t,” he explained. “‘Inflation harms the people on fixed incomes.” Den Richins, director of the Assistance PaymentsOffice in Provo, said inflation is one reason an increased number of people applied for food stampsthis past year over previous years. Captors Demand U.S. Mission Chief 107TH YEAR, NO. 133 PROVO, UTAH, FRIDAY, JAN.4, 1980 $4.50—MONTH, PRICE 25 CENTS Soviets, Afghans DukeIt Out presenthimselfat the den of espionage called on Iran’s Foreign Ministry today documents found at the den of espionage,” the communique said. “Responsibility for transferring him to hand over U.S. chief of mission Bruce Laingen, nowheldin protective custody at the Foreign Ministry building. : The students also said one of the hostages, Air Force Lt. in the provincial capital of Jalalabad, 60 miles from Pakistan’s border, and staged anti-guerrilla sweeps throughoutthe country. The United News of India news agency quoted Western diplomats returning from the Afghan capital of 50,000-man Soviet military machine on Kabultoday as saying the Chinese were invaders with light weapons. Tamir region in the Hindu Kush Mou- Reports from Afghanistan said the Soviets encountered fierce resistance nains of northeastern Afghanistan. arming and training Shola-E-Javed guerrillas who have stepped uptheir insurgency in tribal areas. The agency said the rebel group already had captured Soviet arms and ambushed a military convoy in the Gold Drops Slightly Roeder, 40. of White Fish Bay. Wis. In Tehran, an Afghan rebel spokesman said Soviet tanks have movedclose to the Iranian border with southwestern Afghanistan in an attempt to block all access routes for Iran-based Moslem guerrillas. Sayed Ishaq Diljou. spokesman for the Jamiat Islami Afghanistan group, told UPI the tanks weresighted Thursday ‘‘within a few miles of the Iranian frontier,” directly southwest of the Afghan city of Herat. where intense fighting was reported. Diljou said several hundred Afghans, including entire families, fled to Iran last week. “‘If the borderis closed, the the Vietnamese people duringthe Vietfate of our people on that side of the nam Warandinvited Vietnam to attend border will be sealed,’ he said the proceedings. The hardline declaration was issued While the Soviet military machine hours after U.N. Secretary General tried to extend its reach in the central Kurt Waldheim left Tehran for Zurich Asian nation, the UnitedStates andits after an unsuccessful, four-day diallies groped for an effective response plomatic mission to try to secure the to the invasion. release of the hostages. The communique virtually ordered President Carter asked the Senate to delay consideration of the SALT II the Foreign Ministry to give Laingen treaty. Britain exchanged angrystate- up to the militants but made no menments with Moscow. The U.N. Securi- tion of two other Americans held in ty Council was asked tc consider the protective custody at the Foreign situation. And NATO leaders met to Ministry. “Tt is essential that you advise Bruce discuss military implications of the Laingen, charge d'affaires of the Soviet invasion: American house ofspies in Tehran, to to give explanations regarding spying to the den of espionagerests with that ministry,” the communiquesaid. Laingen, 57, and political officers Victor L. Tomseth and Michel Holland were outside the U.S. Embassy whenit was seized Nov. 4. The other 50 hostages inside the embassy today begantheir third month of captivity. The militants for the first time denounced oneof the hostages, Roeder, as a “war criminal.” “Weshallinvite the brave and struggling nation of Vietnam to send representatives to attend thetrial of this American war criminal and mercenary spy,’ the communique said. It said the shah’s extradition to Iran and return of his wealth to the Iranian government treasury were the “minimum demands” put forward by Tran. Friday: Bank Robbers Hold Hostages SOUTH SALT LAKE, Utah (UPI) — Heavily-armed police and FBI agents surrounded a bank in South Salt Lake City today where gunmen werebelieved to be holding several hostages. Spokesmen for the FBI and the Salt Lake County Sheriff's Office said it was not known how many gunmen or hostages were in the Commercial Security bank branch office. Five bank employes were scheduled to be working. But one report said only two employes were in the bank when the armed assailants entered. The police agencies cordoned off the bank and placed sharpshooters By ANTHONY NICHOLAS United Press International The gold rush that threw the world’s bullion markets into panic eased today butlack of confidencein the U.S.dollar kept gold hovering around the $600 level oc ich Arabs, fearful of the future, werestill putting money into gold for safekeeping, and ordinary people sold wedding rings and watch chains to cash in on the boom. But the fever that swept markets Thursday and sent gold above the $600 markfor the first time cooled today. Prices dropped in the main centers of London and Zurich even though they stayed at unprecedented highs. The weak dollar gained slightly but stayed in thecellar. Onthe opening of the London market gold sold at $610 an ounce, a dropof $20 rom Thursday'sclosing price of $630. After a few minutesit slumped to $580 and later wasfixed at $596. In Zurich gold openedat $610, a drop of $25 from Thursday'sclosing price of 9. in motel rooms across the street from the building. Reporters were told to wait at a nearby police staton “We've got a tense situation out here,” said Jack Wagner, special agentin chargeof the Salt LakeCity FBI agent. He could not comment further. Another spokesman said police were just beginning to put together details of the incident. Curtains were drawn closed in the bank to prevent outsiders fromlookingin The hostages were apparently taken as part of an early morning robbery attempt. Police were sum- moned by a motorist who spotted a man holding a gun outside the bank Today is Utah Statehood Day At 1:30 p.m. in Parowan today, the annual Utah Statehood Day celebration began with an orientation at the ParowanPublic Library Gov. Scott M. Matheson was scheduled to speak t the statehood Day Dinner at 6:30 p.m. Parowan High School. at the Young University Richard Jackson was Professor scheduled to give the Statehood Day address. For more on Utah statehood including some remembrances by Provo Local residents who were at Statehood Day 1896 see Page3 Brigham Why Afghanistan So Important Whereis Aighanistan and whydid the Soviet Union invade the ¢ ? Whois fighting there and y the world so concerned about the crisis there? The answers to these questions Dealers said the dropin the price was caused by peuple selling tv make tie profit gained from its recentrapid rise in price. But the consensus wastherewill not be a substantial dropin theprice unless the international situation takes an unexpected turn for the better. The unprecedented demand for gold was attributed to heavyselling of the American dollar. oil price increases, the Soviet invasion of Afghanistan, the Iranian situation, inflation, gloomy economic prospects ancfearsof war. The weakness of the dollar played a majorrole in boostingthepriceof gold which in one year has risen from $228 an ounce to more than $600. Just one month agothe price was $378 an ounce. Holdersof dollars. afraid they would fall even morein value, switched to old. And ir a vicious circle the panic selling made the dol'ar weaker Col. David would be tried on a charge of bombing NEW DELHI, India (UPI) — Soviet tanks, planes and helicopter gunships battled government troops and guerrillas deep in Afghanistan today and moved to block rebel reinforcements crossing from neighboring Iran. Diplomats said China was aiding the Moslem fighters. The United States and its allies sought an effective response to the the 10th day of Moscow’s grab for wer. The Soviet invasion forces extended their lines to mountain and desert strongholds where Moslem tribesmen on horseback foughtthe heavily armed TEHRAN, Iran (UPI) — Moslem militants holding 50 Americans hostage and other developments onthe Iran and Afghanistan crises are given in an explanatory report and Mideast Briefs, both published today on Page 5. Snow MayBe on the Way Increasing cloudiness is expected to bring cn a 40 percent chance of rain or snow by Saturday night in Central Utah. Overnight lows should be in the upper 20s, highs Saturday near 40, with light winds. Additional regional weatherinformation on Page 3, and see Page 12 for national weather data. Here’s Where To Find It 5 Harried currency broker seemsto watch gold’s progress. ‘ Amusements 10-13 Classified Ads Comics 22-28 19 Commerce Editorial 9 P|) National-International Obituaries Society Sports 5, 12 4 15-16 6-8 |