OCR Text |
Show I a -Ifv. wIUiyc Ont-Ha-jf A ' fOiiii I he .Salt l.ukt- - I nbune, Salurdav . Ortuber 9. 191' II 7 o Fed Cuts Discount Interest-Rat- e To 9.5 Lowest in 3 Years By RoIhtI Furlow AMaxiuted Press Writer WASHINGTON - 'Hie Federal Keserve Board is cutting its interest rate on loans to banks ami other debitors one half point to 9 5 Hreent, the lowest level in more than three years, llie tioard said Friday. In apparent response, at least one bank, Mellon Bank in Pittsburgh, immediately lowered its prime lending rate from 13 5 percent to 12.75 percent, the lowest among hig banks, most of which went to id percent on Thursday from 13 5 percent 'llie Fed announcement came amid growing reports that its governors will continue to ease its once-tiggrip on the nations supply of money and credit. And the new move will do nothing to quiet such reports. Maintain Alignment The closest the announcement came to a policy statement was a sentence that said the discount rate drop is designed to maintain an appropriate alignment with shortterm market rates. Federal Reserve policymakers say tliey raise or lower the discount rate (he interest charged to to keep dojxisitors, mostly banks it in line w ith rates being charged else where in the economy. And short-terrates in general have indeed been declining. But one main reason cited by analysts for those private-markdeclines has been the apparent willingness of the Fed governors to lei the nations money supply rise faster than the Feds formal targets would allow. That willingness has lessened fears that tight controls might choke off economic recovery Release Report On that subject, the Feds the Federal policymaking arm on Open Market Committee Friday released the minutes of its Aug. 24 meeting at which members decided somewhat more rapid if growth would be accetable evidence of economic and financial uncertainties seemed to warrant it. Reports earlier this week said the FOMC made a similar decision at its secret meeting on Tuesday. By itself, a reduction in the discount rate wouldnt necessarily affect any bank rates for corporate for individual customers. But it usually has a substantial effect since it lowers Isirrowing costs for ht SALE O SPA SALE O SPA SALE O SPA SALE O SPA SALE O SP banks and other financial institutions. The reduction is effective next Tuesday, the first business day for the Fed after the Columbus Day holiday. It was the last time the Fed set the discount rate so low since November I78. The rate has been falling gradualfrom a ly Ihrough the recession rt'eord level of 14 percent last November. As for the nation's supply of money, the FOMC decided at its SALE UJ SPA Aug 2t meeting to retain its target range of growth this year at a rate SALE between 2.5 percent and 5 5 percent for the basic measure of M-- l cash and readily accesible funds in checking accounts. for the shorter term through the end of September members voted to aim for grow th at an annual rate of 5 percent to 9 percent, the same aim they had agreed to in July. Mjumped about $5 billion the first week in September. ) oinediorcesTancare But -l as CL (O o SALE LU -- j COMPLETE ( Hearing on MFS Rate Will Resume Tuesday The Utah Public Service Commission continued until Tuesday morn- to determine whether Mountain Fuel Supply Co. should be granted interim rate relief while the commission considers the gas companys request for a rate hike of almost $28 million. ing its hearing During Fridays hearing, Carl Mower, an accountant for the Utah Division of Public Utilities, told commissioners that the division recommends that no interim relief be given the utility. However, Mr. Mower added that the division would not object to granting sufficient relief for the utility to earn an approximate 12.5 percent rate of return on equity. He said a $3.5 million to $6 million hike would be required for such a return. Q. 'SffiMiVe 3 spa pKg 2)i SPA Di)0 5 CO o UJ () SPA CL () E o !nggi3HHi(Il!lSIEE3G9 ackage UJ SALE --I ( SPA Q. if) o SALE UJ 156 m i c n 00250$ SALE O SPA SALE O SPA SALE O SPA SALE O SPA SALE 4 ffssE iriigM aHsiu g4 SiuMim anew at Ibnaymg irfgM hmdy At Greenbriar, its easy to make the right decision. The right price. 3 Demos Urge $3!3t2)lO)Q)! Help for The right home! 3 Bedrooms, Copper Finns Three Democratic state legislators urged Friday that Ctah congressional candidates focus campaign debate on specific steps to help the troubled copper industry in Salt Lake and Tooele counties. The action was called for in a joint statement by Sen Karl G. Swan Tooele. Rep. Beverly White, and Rep. Leon Reese, Tooele, Magna. The trio gathered at Magna's Steelworker Hall to plead for action to aid home building and automobile industries key copper users. "If they endorse no direct action let them say so." the state legislators said. "And let them explain w hether or not it is their intention to lose this important industry, rather than at some point act to increase demand for copper, rather than let nature take its course." The legislators efforts were inspired by this weeks closing of Anacondas Carr Fork copper mine operations, laying off 120,remaining employees. The legislators said more than 2.000 employees in Ihe I tah copper industry are now laid off and uncertainty of job security hangs over 5.000 remaining employees of the Kennecott Copper 3L,3L5 The right financing. 3L2 sq.ftL UtMu ffllonasiimg EtoimeyS The right monthly payment $455.87 3310(D) Souath 5000 Tlie right location. The right time. TMs weekeimdL Sales Price 5 Down Closing Costs Monthly payment Tax & Insurance Division. "The effect of these layoffs g far beyond the individual laid-of- f workers, the legislators said. An increasing slump in economic activity will be felt in Tooele and in Magna businesses, and the impact on already strained local government resources threatens the qual" ity of local serv ices Exclusive Home Features: Engineered ventilated attic Smoke detectors Color coordinated drapes throughout Custom wainscott in living room Total Payment Models Open Daily 966-666- Dishwasher, garbage disposal and ovenrange 3 Kearns-Tribun- e Announces New Controller CiREEINBRUAR Anthony T. Magann has been hired as controller of the Kearns-Tribun- e Corp. Magann Mr. will control the , corporations financial erations. Mr. op- - jfr Mag- j ,j ann. who formerly worked for the corporation as an a- Mr. Magann clerk, holds bachelors degree in accounting from the University of Utah and a masters degree in ccounting a business administration from An.ona State University The Dugway High School graduate was born in Price. Carbon . ( ounlv a SALE -- I Earlier in the day, Mountain Fuel Supply attorney Gary Sackett told the commission he believes the utility has presented a valid request for interim relief of $27,885,000, citing increased costs of materials and supplies and an number of customers. Mr. Sackett argued that it would be better for the commission to grant too high of interim relief because a mechanism exists for refunds to customers whereas funds not received by the utility while the commission debates its request is forever lost to the utility. Before the interim relief debate, the commission granted a request by the utility to combine the current case and the final decision from the utilitys last rate hike request, which is still pending. ever-increasi- SPA i A SPA |