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Show The Salt Lake Tribune, Sunday, October Lenders Like Lower Rates Continued From Page F-- l ing reason (or the bank' big income gain was its higher margin of profit on loans. He said the bank's profit margin was 28 percent more in the July September quarter than a voar earlier. The reason for Chemical's ad other barks better profit margin was simple: tneir rest of from earh buying money other and Irom the Federal Reserve Hoard fe1!. while the interest thev earned from borrowers held steady or fell less rapidly. That was true mainly for the countrys biggest banks in money centers such as New Yoik and Los Angeles. The smaller financial institutions that make up the bulk of the hanking industry has e not felt an immediate benefit from lower rates because thev obtain most of their Iendable funds from depositors. Many of those deposits are in the form of high yielding savings certificates not yet maturing. The big banks are not alone in enjoying the benefits of lower interest rates. Hutton and other investment firms also are doing well. They have seen their brokerage commissions soar in the spectacular stock market rally that was touched off in late August, and again in early October, by the decline of interest rates. Bigger Drops Ahead? Consumers may not be left out of the improving picture for long. While rates on home mortgages and other consumer loans have not fallen much yet, many economists believe bigger drops are ahead. And business loan rates, which fell this past week to 12 percent, also are expected to fall a bit more. David Jones, an economist at the investment firm of Aubrey G. Lanston & Co., said at a bond conference in New York this past week that he expected the prime business loan rate to fall toll percent by next September. That would be a welcome relief for businesses wracked by the recession and a long period of high borrowing costs. Dun & Bradstreet Corp. reported this past week that business failures in the week ended Oct. 7 rose to 598 from 491 the week before. For the first 40 weeks of this year, the cumulative total of business failures reached 19,170 I Hanker Says Kreovery Slow NFW YORK tAIi - Although theres little evidence yet, it will be the consumer, as always, who leads the economy out of recession, says Security Pacific National Hank's Kathleen Cooper. more than for any full year since 19.13, when ses went under. busines- 19,81)9 Cooper, vice president of the bank and its senior financial economist, savs she sees a frothy first year of recovery next year hut will be at a slower pace than previous recoveries She sees a growth rale of 3 percent to 4 Ms Other Business New In other business and economic developments this past week: The Labor Department said its measure of wholesale prices fell in September at an annual rate of 1.7 percent For the first nine months 11 (torrent the year, of wholesale inflation was running at an annual pace of 3 percent said they Some economists thought the rate of prire in-- i reases for all of this year might be the lowest since the 2.2 percent of 1970. Fifteen leaders of major corporations met with President Reagan in Washington and urged that he reduce defense spending in order to rut the fedeal deficit. The business executives also told the president they supported his economic program, although they expected only modest economic recovery next year. The Federal Reserve Board reported that industrial production measuring the output by fell 0.6 mines and factories percent in September. That marked the 12th decline in 14 months and left production at the lowest point in more than five years. Some economists said, however, they expect output to begin rising soon. International Harvester Co., teetering on the brink of financial collapse, announced that all of its nearly 200 lenders had approved the latest modification to it 3 financial rescue plan. The new plan, which eases the repayment burden on Harvesters $4.2 billion in debt, would allow the conversion of up to 350 million of interest and debt principal into equity and also substantially reduce the farm equipment manufacturers cash interest payments. 1 w consumer marketplace. Demand for product is what will lead to business capital investment the ultimate manifesta Bra It oris Bcorl Sales Total home sales for the week ending Oct 18 were $7,892,965. according to the Salt Lake Hoard of Healtors. Included in that figure were 84 residential, properties val seven conuod at $6,703,615, dominiums totaling $463,500, five apartment and duplex properties worth $522,800 and nine vacant lots sold for $203,050. The average cost of the residential properties was $79,805. 'This Offer pay you to save It will At Corner to financial South Main 359 o? 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Ask about American Super Sweep Checking at any American Savings & Loan olhce. Earn high interest and enjoy all ot the other benefits starting today! Money Market interest rales change daily Get the latest interest rate phone RATE HOTLINE 531-561- 4 NP3Lt Llf s.'j me copy ol "What 1 Discount You and new ouount Iniormatlon. n r Pleas For I r 355-940- Interest Rates Instant Cash Access 24-Ho- Droller serving Salt Labe City investors. ' fourth-quarte- Money Market r 7hel Discount I ) Daily of Utah University Graduate School of Business 50 So Mam Street Suite 840 Srt Lake City Uf 84M4 30-4- 0 Hall Fee: $6 if registered by Oct. 20th $10 after 20th 453-476- which the firm may use to seek a suitable partner. Du Pont DI) 39, 'f) appears to range be slowly getting rid of the indigestion it developed when it swallowed Conoco last year Indeed, the firm has been attempting to trim some assts in hopes of lowering the $3 9 billion debt incurred Storage Technology (STK 19 NYSE, 52 233k range 16 10) is recommended by the California Technology Stock Letter (San Francisco, Calif ) STKs stoc k was one of the hardest hit in the exhaustion bottom last summer, deteriorating steadily to a low of 16'i. Although it has moved up somewhat with the market, it has not performed as well as most of our special and aggressive buys. Dirk Davis is an employee of a member firm of the New York Stock Exhangc and publishes his own market letter. Write to him in rare of The Miami Herald, Business News Desk, 1 Herald Plaza, Miami, Fla ,33101. Good Through the Month of October, 1982 s In Continued From Page F-- l ty. If one is looking for a long term vehicle from a quality-growtstandpoint, Wallace is certainly the best vehicle in the industry. Robert Anderson of Martin Simpton adds' I see Wallace as a stock not affecled bv the fortunes or failures of a given industry It's the com pany I'd go with for qualify and safty " Two undervalued situations are Du Pont and Chelsea Industries, according to Dow Theory Forecasts "Chelsea (CHI) iHammonri, Ind 11, range 7' 11). the shoe and plasties products maker, has been aggressively eliminating unprofitable divisions over the past two years and now appears to be reaping the rewards of its eonsoli flat ion efforts. Earnings in fiscal 1982 are running nearly 13 percent ahead of last years figures at this point, and the fourth quarter should r at least equal fiscal 1981 s profits. Chelsea's future is enhanced by its sizable cash horde, Bonus Interest 1 Inventory in Mfg. Inventory Control Techn-queAccounting & Financial Analyse and Cost Control Common Inventory Problems Material Requirement Planning Call Free in Utah (8001 662-958- 0 Call Free (800) Investment Long-Ter- m Accounts protected up to a max. mum of $15,000 by Ce Industrial Loan Guaranty Corporation which is not an instrumentality of the State of Utah or of the Federal Government Pusmco Lecture 581-790- Bully Time to Make A Annual YwM. mrludioq 1 Bonus. hasri on quarterly certificate compounding of interest on Effective October 13. 19B? through October MANUFACTURING INVENTORY CONTROL For registration. Call I 3 companies -T- wenty-three U Consumers will lead the wav out, sas. Let iOsc that's the only av .1 recession ever ends. Simply put, a manufacturer is not going 10 start recalling employees and step up the production of refrigeration, for example, until there in a dear demand in the made high bids totaling a nearrecord $2.1 billion for rights to drill for oil and natural gas in the Beaufort Sea of Alaskas North Slope. The highest bid for an individual tract was $227 million, made by a group consisting of Mobil Corp., Tenneco Inc. and British Petroleum Ltd. and its Standard Oil Co. Ohio affiliate. The tracts offered by the Interior Department cover 1.8 million acres in an area thought to hold one of the richest oil and gas reserves in the United States. pm Uo Hank economists agree that one reason consumer spending has not risen sooner is that American households are using their income these days to pay off their debt, rather ihan spend and incur more. lie SMALL BUSINESS DEVELOPMENT CENTER Management training for Small Business Managers Wednesday Oct. 27, tion of a revived economy, she says And consumers are tending to look for longer lasting products, planning to keep such big cost items as ears for longer periods. The average ear is now 5 years old, she says, when not long ago cars were replaced every two to three years 17, 1982 V SCSIS? 500,000 1 1 Broker Con Do 4,1,14 1 I Ti'iklk 'if rilt I rtwnQ to- - tH Il fl tldn W' rt, ; F- -l. a 0,4,,.. r.pi rpi sC'On nii 'vet - nnr,M in f, c,h.-i- Of - r o i.S 9 |