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Show I and Down tin SlrrH ) U.S. Money Supply Declines abc Amount, Not Price altiakc $600 Million in December Is Food Problem? Sri bun f Robi ilnini' Bv 1 t II i W uodv Editor Sine people an i urn irru d about loud pi ms Hut when you get right down tu it they te j lot more ion itimd that food is on lilt- tub 1 - ui iiiei s I'nion resident (ii'oige I I Stunt' 1 lie udniinis- ing Utah Idaho Farmers Hu si ness Union Saturday Morning President Roy L Holman, the dismantling of pi ue suppoits systems 10 years ago and thrusting of Amer i can agriiultuie into the free mar-Se- e Rage B I f, ( olumnl National says anise wire highly tonierned with soybeans he said They were quite t undid Certainty of supply, he said was far more important to them than price I rom the point of view' of outgo- - By Steven R Rosenfeld Assonated Press Writer NEW YORK The nation s bas,c money supply declined $600 million in late December as business borrowing surged and bank reserves grew scarcer, the Federal Reserve Board said Friday The report sent interest rates rising slightly in late bond market January Section trading Yields B Page 10 three-mont- h Analysts said traders were disap- - at ion iun give all the signals it I on Treasury bills climbed to 8 92 percent from 8 87 percent after the 4 15 p m LST release of the figures 7, 1984 I wants about b Duffy Amenian faint eis cutting tests to maintain market sliaie llrucr Hammond farmers tut anv more there simply isn t going lu be any Hut if the oi set briukfust lumh and supper tables he says Mi Stone t4 was in Salt Lake City Friday for the annual meeting of the Ltah Idaho Farmus Union The Utah Idaho group claims 2 000 of the Fa i mers Union s 325 000 nationwide membership Mr Stone ret lies shortly from the national post, based in Washington D C , to return to his native Oklahoma where, he said he intends to resume farming and lose monev Market Not Free ugiuulture Should farmers compete 0 T hird htraijdit Hectic Scion NEW YORK (AP) - The stock maiket climbed to heights with its thud straight gain near-recor- d another hectic session Prices churned around Thursday s closing levels through the morning as some traders cashed in on the mai ket s recent gains But by midafternoon Wall Streets eaily-198rally was rolling again The Dow Jones average of 30 industrials, off about 3 points at the outset, was up 4 40 at 1,286 64 by the close That gave the average a 28 point gain for the first week of 1984 and R.'ft it only a fraction of a point below the all time closing high of 287 20 it reached last Nov 29 Volume Remains High Volume on the New York Stoik Exchange came to 137 59 million shares, down from Thursdays record of 159 99 milhon but still the sixth largest total ever The government reported Friday morning the civilian unemployment rate fell to 8 2 percent in December, its lowest level m more than two years from 8 4 percent the month hefore That news lent support to the general belief on Wall Street that the economy was starting out 1984 with strong forwaid momentum Brokers also noted, however that the stock maiket had built up some big gains in a short time and was meeting with resistance from traders eager to cash in profits T riday in 4 1 and brokerage turned in a strong showing for the second straight session with stock trading booming and the Getty situation heating up the takeover kettle on Wall Street once again Merrill Lynch rose Pi to 355s. r'iiiaiitidl-service- Phibro-Salomo- s meanwhile, issues to 34 1. 13 n First 38 8 Activity also was brisk in the telephone stocks The old" American Telephone & Telegraph gained 1 to 668 and the "new ' AT&T emerging from the breakup of the Bell System rose 1 to 19 L Right below the two telephone issues at the top of the active list was Waste Management, down 28 at SSs after a drop Thursday when the company said its earnings for 1983 would fall short of analysts 68-poi- estimates Levi Strauss which has projected lower fust-qutel profits fell 2lz to 3b1 2 Gold Down $78 69 stocks also declined as the price of gold dropped $7 60 to $367 90 an ounce on the Commodity Exchange in New York But overall, gamers outnumbered losers by almost 2 to 1 on the Big Board, and the exchange's composite index rose 37 to 97 71 Nationwide turnover in NYSE-liste- d issues, including trades in those stocks on regional exchanges Precious-metal- s As for prospects of farmers to signing up for the new PIK level. Secretary Block talks omimnislv ot the alternative, ' he said The secretary didn t say what the altc rnative was in a meeting Thursday said Mr Stone But in Mr Stone s estimation the non-PIalternative forbodes prn es at a disastcrous $2 50 a bush el If Americans don t know that price is secondary toceitainty when i! conics to food supply he said oth ei societies do He reientlv talktd with agiuul-trist- s tium Japan aiountrv heavily di pendent on iood impoi ts The Jap Eight special edition 84 Cutlass Supremes GREAT 3 WHEEL DEALS FOR THE WHOLE FAMILY ATC2 JO pon't $1,298 be the last in your neighborhood to enjoy ) wheel fun. Complete ATC sizes for everyone in the family. MOM TOO! Place your order for soon - to - arrive models Ken Garff ihjrt PERBTiBROTHEBS c ls Boston 3 to 46l a, EF Hutton to 38Ji, and Paine Webber 1s to Lower price supports don t mean people are going to cut back in production History shows if anything he said that when prices t ill farmers grow more or add more animals to the dany herd to make up for di op in unit income That, of course, only drives puces ruinously lower 98 J ATC 200 We're probably due to settle in for a rather placid, dull existence. ' said Jeffrey Leeds, a monev market economist at Chemii al Bank in New Oldsmobile Honda State at 5th South 521-611- 1 Open Sat 8am-7p- 8am-6p- m and in the market, totaled 159 28 milhon shares Standard & Poor s index of 400 industrials gained 49 to 190 64, and k S&Ps composite index 500-stoc- was up 47 at 169 28 The NASDAQ composite index for the over-the-count- market jumped 3 45 to 287 90 At the American Stock Exchange, the market value index closed at 227 73. up 86 percent the Treasury bill rate averaged percent corn k earpared with 8 94 percent a wei lier Member bank bon ow mgs from the Federal Reserve Svstein avermilaged $1 22 billion up fiom $b!9 lion The Fed increased its holdings of government securities bv $4 9j The three-mont- h 8 98 Total reserves of member banks averaged a seasonally adjust ed $37 83 billion up fiom $37 39 bil lion a week earlier York Rates Will Be Flat Frank McCormick, an economist at Bank of America in San Francisco. said "rates will be flat for the next one to two months " But McCormick said if money supply growth slows further in January and February, interest rates could fall and the economy could $522 3 bil- non-ban- Markets Rally Continues to Roll 8 96 cent up from previous week billion lion Ml includes cash in circulation deposits in checking accounts and k travelers checks The Fed Mr Stone 1 But forecasts for continued interest rate stability were unchanged originally was reported as a 'free market A wonderful idea he says But the market is not 'free when 75 per cent of the world s goods - ly slow down The Fed said Ml fell to a seasonally adjusted $521 5 billion in the seven-day period ended Dec 28 from a revised $522 1 billion the previous week The previous weeks figure in reflect either subsidies or other in terventions bv governments In the meantime in spite of Fai mers Union urgings for 50 years that the nation needs a long term agricultural policy it stumbles measures along with short-terwhich wont permanently solve the problems, he says So, Secretary of Agriculture John Block calls a summit meeting of agricultural interests, and says all have to pull together All agree There has to be a unity of purpose But look, Mr Stone told his audienie at the Airport Hilton, you are not going to get unity when it gets to the nitty gritty Diverse Interests Agriculture represents diverse interests wheat growers, daily men each with its own ranchers, etc concerns A rancher is not going to be enchanted when dairymen cull herds to cut nnlk production then sends the i ulls to the slaughterhouse to depress beef prices And those interests become even more divided when it comes to the commodities dealers sector Commodity dealers, whether in pork bellies, oranges or w heat, are not about to see individual interests compromised for the good of the whole Payment in kind, under which wheat growers agreed to a loan level of $3 55 a bushel of wheat if they set aside 30 percent of their ai rcage has had some benefit Wants Lower Aid But now the Department of Agriculture wants to dilute loan level to $3 30 a bushel for set aside ot 15 to 20 percent That s a formula for disaster says pointed that the drop in Ml, a measure of funds readily available for spending was only about half the decline that had been expected In addition, hopes tor a Fed shift to a policy accommodating lower interest rates dimmed with the report that banks had less money available for loans at a time when private demand for credit was growing rapid- tries to provide enough money to sustain economic grow th w ithout rekindling inflation For the latest 13 weeks Ml averaged $519 1 billion, a 2 1 percent seasonally adjusted annual rate of gain from the previous 13 weeks However, the Fed has said it would like to see Ml grow between 5 percent from the second quarter through the end of 1983 Loans Rise $2 Billion Meanwhile, the Fed said commercial and industrial loans on the books of the nation's large banks rose $2 29 billion in the week ended Dec 28, compared with a gain of $1 89 billion the previous week The Federal Reserve Bank of New York reported commercial and industrial loans at major New York City banks rose $689 million, compared with a gain of $102 million a week before and a fall of $278 million in the comparable week a year ago Week's Indicators Indicators for the week ended Wednesday included percent and 9 The average rate paid by maon large certifibanks jor cates of deposit fell to 9 64 percent from 9 73 percent the previous week y The federal funds rate, the inloans beterest rate on short-tertween banks, averaged 10 06 per Citicorp Center Gains FDIC Membership finanCiticorp cial Center of Ltah has been ap proved for membership in the Federal Deposit Insurance Corp, Dee Taylor, vice president of the Person Financial Center in Salt Lake City, announced Friday Peison-to-Perso- Citicorp n a Person-to-Perso- n thrift and loan or industrial loan affiliate of Citicorp , New York based bankholding company, has deposits of more than $53 million and six oi fiees in Utah Federal legislation co sponsoi ed under bv Sen Jake Garn. the Garn St Germain Bill of 1982 made it possible for industiial loan corporations to be eligible for f DIC coverage Membership in the FDIC. the federal agency which insures deposits of commercial and savings banks means customer deposits are federally insured up to $100 000 While Citicorp automatically abandons its membership in the privately-sponsoreUtah Industrial Loan Guaranty Corp. which backs deposits to a ob$15,000, it maintains Us ligation in arrangements by ILGC in the acquisition of the former troubled Muiray First Thrift and Loan by First Security Corp, Salt Lake Person-to-Perso- n d pro-rat- City The ILGC particpaiton in either payments, deposits or guarantees approximated $10 million of which Person-to-Person- participation 's was about $1 5 million . based on its percentage of deposits among the states industrial loan companies Mr Taylor said Citicorp entered the industrial loan business in the eaily 1970s with acquisition of Nationwide Finance n ofIt opened its fices in Utah 10 years ago in lormer Nationwide Finance oifice Person-to-Perso- |