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Show mhi nriinTnirirTTTiriiri h i Commerce Department Takes Action To Limit 9 Nations Steel Imports Charlie Green B departed for West Germany, the last stop of his European tour. Government officials wanted to shield Reagan from potentially embarrassing questions on the matter while he was still overseas. Not surprisingly, initial industry reaction was favorable. U.S. Steel Chairman David M. Rodenck said the government action reflects a strong determination by the administration to enforce this countrys trade laws." Combat Will Continue Roderick earlier this week said U S. Steel will continue to file trade complaints as a way of combatting imports. As the old saying goes, you taint seen nothing yet, he said. The ruling comes at a time when the domestic steel industry is facing its worst slump since the Depression. Unemployment in the industry now stands at about 30 percent and plant operating rates have plunged to their lowest level since 1938. of the steel supply in About one-fift-h the United States last year came from d of the foreign sources; about imports came from Common Market countnes. In the trade complaints that the ruling, seven domestic steelmakers charged that foreign governments were subsidizing steel production so they could avoid layoffs. The complaints cited interest-freloans, cash grants, cancellation of loan obligations, and research and development aid as examples of the government subsidies. Lionel H. Olmer, Commerce Department undersecretary for trade administration, said he hoped the agency's action would not provide a trade war, but acknowledged that it will have a "chilling effect on steel imports. We take no satisfaction in the impact this will have on the foreign trading patterns of our partners, Olmer said. We realize that both the Knight Ridder Writer WASHINGTON In an action that pluce new strains on U S relations with Europe. the Commerce Depart-mer.- t moved Fnday to hmit steel nine countnes accused of v lolating international trade laws Seven Common Market countnes, Brazil and South Afnca were found by g the Commerce Department to be their steel industries, giving them an unfair trade advantage in the Crated States The ruling, while preliminary, ear-ne- s with it a requirement that importers post bonds equal to the estimated subsidies The bonds wall add between 1 percent and 40 percent of the prices of a wade range of steel imports, effectively shutting out some foreign producers from the domestic market. Reaction from Europe was quick and harsh Vicount Etienne Davignon, the industry commissioner for the Common impor from Market, blasted the ruling as and indicated that "protectionist trade retaliation could follow. U.S. steel industry and the European steel industry, in particular, have fallen on difficult times. A final ruling on whether import duties will be imposed is due by Oct. 15. In the meantime, government officials are expected to resume negotiations with European leaders in an effort to reach a voluntary trade restraint agreement satisfactory to the domestic industry. Sfyf LOS ANGELES (AP) Gambling tends to have its highs and lows, but on Singapore Airlines bettors can soar even while their fortunes plunge By Stev en P Rosenfeld Associated Press Writer The airline pioneered slot machines in the sky a year ago, but shut down play because passengers kept breaking NEW YORK Two measures of the nation's money supply grew in the latest reporting pencids. the Federal Reserve Board reported Fnday, dampening hopes for speedy relief from high mterest rates. the machine's levers. machines have been inaugurated on a Smgapore-to-Lo- s .Angeles flight. credits, Players, who bet with can win up to $100. 50-ce- Economists said Saturday Morning, June 12, 1982 Section B Page 1 Davignon said European officials would begin examining American goods entering the Common Market nations to determine whether they are being subsidized by the U.S. government. "I do not like the terminology of trade war because I do not know what it refers to, but it is clear we are entering a very difficult period of time, Davignon said in Brussels. The European countnes cited in the ruling are Belgium, France, West Germany, Italy, Luxembourg, the Netherlands and the United Kingdom. The governments of the United Kingdom, France and Belgium were found to be providing the steepest subsidies. The political sensitivity of the ruling was reflected by the decision here to delay its announcement until noon after President Reagan had Fnday tng-gere- e Utah Bankers Association Sets Annual Meet for Snowbird d h Special to The Ti ibune SNOWBIRD Some 450 members of the Utah Bankers Association and their wives will join here Sunday through Wednesday for the 74th annual convention. Key speakers will be discussing issues ranging from the future of community banks in an era of deregulation and accelerated competition to legislative and regulatory problems Lead off speaker Monday at 9:20 a m. be Larry Johns, president of Isabella Bank & Trust Co., Mt. Pleasant, Mich., and vice chairman of the American Bankers Association Community Leadership Bankers Council. will Rep. Norman H. Bangerter, Lake and speaker of the Utah House of Representatives, and Sen. Miles Cap Ferry, R. Boxz Elder, president of the Utah senate, will discuss legislative TEN MOST WIDELY FOLLOWED STOCKS L UTAH lt 1981 matters. Other Monday speakers will be Edward T. Alter, Utah state treasurer and Dr. Lawrence Krider, executive director of the Conference State Bank Supervisors, Washington, D. C. Tuesdays events will involve golf and tennis competition. On Wedensday morning at 9 a m., Mrs. Elaine Weis, Utahs new director commissioner of Financial Institutions, will address the group. Editors, brokers consensus, wbied to ehanee April Inventories Up WASHINGTON (AP) Cramped by poor sales. American business officials saw their inventories of unsold goods rise 0 2 percent in April, the first increase since November, the Commerce Department reported Friday. Total sales for the nation's manufacturers, wholesalers and retailers in April dipped 0.9 percent below their March level after rising in February and March, the report said. Rising inventory levels near the end of a recession can sometimes indicate that business officials are rebuilding stocks in preparation for an imminent recovery. But analysts inside and outside the government said Friday that the April gain apparently had more to do with slow sales than with intentional inventory rebuilding We've got inventories that are high and interest rates that are high, and both have got to come down before the economy can recover," said David Ernst, v ice president of Evans Economics in Washington. With stubbornly high interest rates making it expensive for businesses to carry big stockpiles, he said, further cuts are on the way. If so, that would mean the recession would continue at least a bit longer, with business officials selling off their inventories rather than encouraging production increases by ordering new goods Dan Jones, president of Dan Jones Associates, Salt Lake opinion surveyor, will discuss The UBAs City-base- d Financial Institutions Public Opinion Survey." Jack Whittle, president of Jack Whittle & Associates, Washington, D. C., will discuss Space Age Financial Marketing in the 1980s." Dr. Barry Asmus. professor of economics at Boise State University, will discuss Supply Side Economics; Where Do We Go from Here?" He said it is encouraging that the company continued to show a sales gain during a difficult time. While he declined to forecast earnings for the coming quarter, he said the firm anticipates continued sales and increase. d Grand Central Inc., Salt Lake department store chain, reported Friday that although its third-quartsales were up, it sustained a loss of $242,750 (11 cents a share) for the period ending May 2. Sales were $53,549,858, up 5.5 percent over the 1981 quarter. During the 1981 quarter, it reported net income of $380,561, or 17 cents a share. The results were not unexpected, said Richard H. Chapin, senior vice president-finance, in view of the fact that the quarter is usually weakest for the fiscal year and that Grand Central had sharply increased interest expense to finance unusually high inventories. City-base- The loss is disappointing, but we are financially strong and healthy and are looking forward to improved results in coming quarters, he said. Sales for the year to date were up 9.5 percent to $193,84-1,182- . Earnings before a charge in accounting for the first quarter were $702,975, down from $920,560 for the year-ag- o period. W r ( percent cut in federal income ax in July, accompanied by a 7.4 percent increase in Social Security benefits, is expected to swell Ml next A 10 rates month. Thomas Thomson, chief economist at Crocker National Bank in San Francisco, said the Feds report was disappointing because investors are looking for declines in Ml this month to moderate the impact of any bulge in the money supply in July. Critics Believe The Fed seeks to fight inflation by attempting to control the growth of the money supply. Too fast growth, it is feared, would rekindle inflation, while too slow growth would choke off economic activity. Critics believe the central banks restrictive policy is responsible for the high interest rates that have brought on the past two recessions and threaten to abort an economic recovery. These amounted to 33 cents a share, off 21 percent from 42 percent cents for the year ago period. The accounting-chang- e in the first quarter reduced e earnings by 16 cents a share due to the cumulative effect on prior years. That reduced earnings to date to 17 cents a share. Donald A. Mackey, chairman and president, said the loss occurred in February and March when the economy was more depressed and weather held back spring sales. Results improved later in the quarter. He said interest expense was $774.00 higher than during the prior years year-to-dat- quarter. Kmmr . .0 nm r. ' Contemporary steel office furniture at fantastic low prices ? VbV-y- y y," U 2 E - 4 mmkd ty x L A, r , . v s' ', a vF Broadway J.C. Penneys All The Fed said a broader money supply measure, known as M2 and adding such funds as savings account deposits and money market funds to Ml, averaged $1.8947 trillion in May, up $14.9 billion from April, about as expected. k. MMItHIU Orji. - alidated Parking at: K. The markets will go to higher yields, no question about that," said economist Jeffery Leeds at Chemical Bank in New York. Cut in Taxes theres SPECIAL py DSCMASES Office furniture American Savings 200 So. West T emple Harver Parking Terrace ) Ml includes cash in circulation and deposits in fmancial institutions and many analysts had expected either no growth or a decline in the latest week. checking-typ- e Grand Central Lists Loss for Quarter if ' f 4 billion in the week ended June 2 from a revised $451.4 billion the previous week. The previous weeks figure for Ml was originally reported as $451.5 billion. e continued strong demand for business loans and expectations of another surge m the money supply in July would keep mterest rates high. And despite House approval of a Republican federal spending plan, apparently ending a congressional impasse, analysts said interest rates also would be kept high by heavy Treasury borrowing to support record federal deficits. Bond Market Rally A mild bond market rally that followed the House budget action Thursday came to a halt following the release of the money supply report late Friday. The price of a long-terTreasury bond, which had been up $1.25 for each $1,000 in face value shortly before the 4:10 pm. EDT release of the figures, fell $5 within minutes to wind up off $3.75 on the day. Interest rates on Treasury bills in the market of a percenspurted up about one-fift-h tage point. Measure of Funds The report, released after the close of trading on the New York Stock Exchange, also raised concern that the central bank had tightened its credit reins last week, something that would also put pressure on interest rates. 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