High Point Enterprise Newspaper Archives Jan 2 1972, Page 6

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High Point Enterprise (Newspaper) - January 2, 1972, High Point, North Carolina 6a High porn of Enterprise sunday january 2, 1972a year ends in business world Trade is big Issue by Linda Rubey a business writer new York apr International Trade considerations dominated the business scene last week As president Nixon evaluated a special report calling for the establishment of new rules for world Trade. The report called for Congress to give the president new authority to negotiate reductions in International Trade barriers As Well As for the Reform of the world monetary system and the establishment of new codes for International business investment. The report did not contain specific details on the new legislative requests but administration officials said a the thrust of our proposals will be in the area of reducing in another development in the Trade picture the Commerce department reported this week that the . Trade deficit narrowed sharply in november. The Commerce department explained that the figures continued to be distorted by the Dock strikes of several months ago. The surplus of imports Over exports in november was $227 2 million Down substantially from the record deficit of $821.4 million reported in october. Observers said the import decline might have reflected the first effects of the now removed to per cent import surcharge and the upward floating of several important foreign currencies. On the Domestic scene the Commerce department reported that the governments composite Index of leading economic indicators Rose in november for the third consecutive month. The Index which often foreshadows Broad movements in the Economy Rose .2 per cent last month to 128.5 per cent of the 1967 average. A the leading indicators continue to Point toward further economic expansion in the months ahead Quot said Harold c. Passer assistant Commerce Secretary for economic affairs. Meanwhile some prominent private economists voiced doubts about the ability of the Economy to meet their own glowing forecasts in 1972 without fresh tax cuts or other fiscal stimulus. There was a general consensus among the economists that the Gross National product should gain about $100 billion in 1972. A additional government stimulus will come soon o Bolser the substantial stimulus already present with a new fiscal package a real possibility to supplement monetary policy Quot said Daniel s Hearn senior vice president of Wellington management co. In other developments the securities and Exchange commission asked Congress for greater regulatory Powers Over the Industry to protect investors from a recurrence of the crisis that hit the Stock Market in 1969-70. The Sec request said that As a result of a recent study it had concluded that self regulation As practice by the exchanges had failed. The request asked for More effective Power to disapprove or alter any Rule proposed by the Stock exchanges for Power to review and modify the sanctions handed out by the exchanges and the National association of securities dealers and for direct Power to enforce the rules of the exchanges and the Nash. In the meantime a group of 19 Well known economists led by James h. Lorie of the University of Chicago urged Congress to oppose the recommendations for changing a he securities Industry made in the report prepared by William Mcchesney Martin or. The economists said a acceptance of the recommendations of the Martin report would help to reestablish the eroding monopoly Power of the new York Stock Exchange and to subject that Power primarily to regulation by the the House of York Swartzberg a which has been in operation for the past 35 years moves into 1972 with a new name the House of York As the ownership change which began a year ago is completed. Three local businessmen. C. Vav. Clinard jr., j. De Hill and Vernon k. York Are the owners of the store at 125 n. Main St. Which carries clothing for men. Women and children York above is manager of the store which in addition to having a name change has been redecorated York said the store is in the process of upgrading Quality and adding new lines of merchandise. The new name was selected during a contest among store customers. The former owner of the store. Mrs. M s Swartzberg. Retired from Active business just Over a sear ago. Trade winds Home building Boom seen As fading off in 1972 by Lou Schneider a Rob Amar if an a we paper Arliage new York Home building was the major prop of the nations business Economy last year. The big question for the new year is will inflation make single family Home ownership a declining life style in the United states that query is put up by Norman Strunk executive vice president of the United states savings and loan league a Trade association of some 5,6<mi members with assets of More than $200 billion and the largest constant lenders on Home mortgages. His records show that in 1940. Less than 44 per cent of All u. S. Families owned Homes. It Rose to 55 per cent in 1950 and then to almost 62 per cent in 1960. Says Strunk a however Between 1960 and 1970, the proportion of owner occupied dwellings came to a virtual standstill rising to Only 62 9 per he adds a the major Factor in curbing Home ownership has been inflation. A beginning in 1966, the climbing Pace of inflation it ent land and construction costs soaring. That raised the in. Al of All interest rates including candidates end tie by straws Marksville. La. A. A close election race has been decided by a Straw. When ballots were cast dec 18. Wade Mayeux and Daryl Lemoine Drew 518 votes each for a seat on the Avo Yelles Parish police jury the Parish governing body. A recount changed nothing. So. At a meeting of the Parish democratic executive committee on thursday Mayeux and Lemoine settled it according to state Law. They Drew straws. Mayeux won. Those on mortgages. It forced Home Huvers to make larger Down pay merits and larger monthly payments. A result More and More americans have been priced out of the s i n g i e / a m i i y Market. Home ownership also suffered because with land priced so High builders could Only develop it profitably through Multi family occupancy. A americans still want single family living. The proof is the marked Rise in Mobile Home sales last it ear to about 500.000 based on Strunks argument it appears that Home building which was a major prop of the National Economy last it ear. May not Supply a similar thrust to the Economy this year. President Nixon is aware that Home building is essential to his recovery program. That a Why he has brought about subsidized Home Loans via government agencies allowing longer term mortgages at lower interest rates and smaller Down payments. An expansion of new housing leads to an upsurge in consumer durables and other Home furnishings a appliances furniture carpeting Etc. But economists Alert to Home building activity say the Bloom is off that Boom. Said one a a we Hile the Industry a prospects Are still Bright it has shot its Bolt. It May Only repeat its 2 2 million unit total of last year. The Economy must now look elsewhere for a in a j o r stimulus. Banking informants Are predicting that Home building will run out or steam this coming summer. Reason president Nixon is encouraging consumer spending which Means savings will be reduced and so will institutions. What it adds up to is that there May tie a reduced Supply of funds for Home mortgages. That May Force higher interest rates which in turn May curtail Home buying. Its noted too that president Nixon is constantly encouraging an uptrend in Stock Market investing. Example. The Federal Reserve s reduction in Stock trading margin requirements and its pressure to Force lower yields on Bonds. Should the president restore a Aith in the Stock Market and with new Homes priced at sky High level the Little fellow May decide to plunge for gambling profits to do so he will cig into his Hank savings. This mortgage Money could become scarce. Realty course free lecture fri., Jan. 7, 8 . All classes held at Greensboro Owca bldg. National Springs corp is going to continue indefinitely a four Day work week schedule at its plants in High Point and Tupelo miss. Tar Heel Economy advances there was a Sharp Advance in North Carolina s business activity during the month of november. The North Carolina Busine it it Index of Wachovia Bank and Trust co., n. Arose by 1.4 per cent to a preliminary 116 8 this is an increase of 3 4 per cent above november 1970, and 16 8 per cent above the 1967 average level. The increase was reflected throughout the s t a t e a Economy. The unemployment rate dropped for the fourth consecutive month Reading 3 4 per cent the lowest level since february 1970. Inflation continued to slow As consumer prices increased at a rate of less than 2 per cent annually. The consumer Price level was approximately 3.5 per cent above november. 1970. Non agriculture employment advanced to a record High. Employment increases were Felt both in durable and nondurable goods manufacturing. Government and service Industry employment continued to increase. Trade employment relatively weak in recent months jumped 18 per cent seasonally adjusted to a record High. The average work week in durable and non durable goods manufacturing showed improvement. Manufacturing wages relatively Flat during the jumped i 2 per cent and were 6 per cent higher than november. 1970 new car and truck sales increased sharply surpassing All previous records. Retail sales and total spending in general within the state advanced to record Levels. With residential building leading the Way construction continued to be vigorous. Total building permits issued in 18 North Carolina cities advanced to a record High during november. The c u in u i a t in e year to year volume of building permits is a third higher than 1970. George p. Clark . 111 Hoyden place phone 882-7 816 a a i a Mem i ii la i it w Robert Mccu ton . 164 South main Street Tel 883-0424 business notes firm Here to continue 4-Day week incomes Rise Over the past to years the number of households with annual incomes exceeding $15,000 has nearly tripled while the total number of households increased Only by one fifth. In 1970 there were Over 12 million households with $15,000-plus incomes revealed a study by the conference Board and reported in the january 1972 Issue o f finance facts a monthly newsletter on consumer behaviour published by the National consumer finance Assn. Women s libbers May be Happy to know that the increasing prevalence of the Multi paycheck Home is a major Factor in the growth of the upper income bracket. At the $15,000-plus level o f household income Over 75 per cent of the Homes had More than one person in the labor Force. The future looks even brighter. It is estimated that by 1975 about one Quarter of ail i is holds will he in the $15.000-plus income bracket. By 1980 one third of All households will be in this upper income bracket. As More and More family incomes Rise Industry will redesign its merchandise to Appeal to this vast and prosperous Market. A by Ray Hubbard. Loans Down according to the weekly Survey conducted by the Federal Reserve Bank of Richmond Gross Loans at 28 of the largest Banks in the fifth Federal Reserve District decreased $63,165,000 during the week ending dec. 22, lowering the total outstanding to $10,316,193,000. Loans to Domestic commercial Banks dropped $158,867,000. Loans net of these Interbank transactions or Loans adjusted. Rose $9 5,702,000. Demand deposits increased $21.946. He and time deposits gained $7,150,000. Investments went up $14,539,000. Figures for the 28-Bank report showed that financial Loans fell $8,406,000. Of this total Loans to financial institutions other than Domestic commercial Banks dropped $5,444,000 Loans for purchasing and carrying securities declined $2,815,000 and securities purchased under resell agreements with brokers and dealers went Down $147,000. No financial Loans climbed $104,108,000. Of this total commercial and Industrial Loans Rose $39,326,000 real estate Loans gained $11,425,000 consumer instalment Loans increased $9,845,000 agricultural Loans went up $166,000. And All other Loans Rose $43,346,000. Stock quotes a the Fiew work Hedi Ile is a Success for Karl f. Ockershauser National Springs president announced last week. The four Day work w Eek w As inaugurated in the National Springs Plant on bin Wood Circle last july 12 for a 90-Day trial period. As far As is known the company is the first Industry in High port to try the four Day work week. Under the plan workers Are on the Job nine hours a Day for four Days a week. Those who put in the full 36-hour week Are paid for 40 hours of work. Tile schedule also Means the workers have a Long weekend of three full Days a Friday saturday and sunday a for Leisure time. During the trial it period. Such factors As absenteeism productivity and stability of the work Force were closely watched a results started to surge for us in october and Ockershauser reported. A improvements were noted in productivity and in the stability of our work Force. Costs of labor in reference to sales and production a i s o w e r e favourably Ockershauser said the four Day work week schedule will Start in the National Springs Plant in Mississippi i n february. The decision to try the four Day work week at the National Springs Plant was made by Okershauser Early last summer. A native of Wisconsin he has been president of National Springs since 1966. Sickness May be hazardous to your wealth. When sickness or Accident has nou Down those regular Bills keep showing up every month. Talk to the listener about the Many ways int Egon insurance can help your income survive s disability. Talk to the listener. Ovar Iha court tar Stock by Tim Assoc at to press o Jot on from the Naso or or not Gay of re or Prien of approx Rrt a / pm. Thursday adj it to opt influx Mark up Mirk Pon or commit of. Lot rpm air ref Canga through out the Flay. A a Froh at ant g l a re a or a Binning Branch Bank n c Bruch i Ryl Cam Bro nut c#0 Brown com Cam by two it Chi a poo Burt a Puiyip try com a Bood car. Anc Carolin Ca inc f re Carlo Caro Pau or carotid to Carolin Whit Blo cent a Cratham mfg Chr a Burn Colon Al str 4 pc. Pad c Ommund ban Durham lit Al Pato electric Utun Natl Bank corp food own Storaz Gar Tor k i Brook a org a into guardian car hard by by com Marr in rut h Tkory Burn Moor into on Coro join mfg a Waus senti Knap a vol mfg Lane l of of Caro lift m it look co Mack a Thod i tron a cab corp n c natural Gat new Binan Occide Neal lit 3 pay n svy Phill pm focus p�?T#<1>rnnf a Quality Mill Ros or Ruddek Sac or com Monoco prod Stern Natl corp sugar Ala fool Tran a p pin trial go Brick it mfr Walker b b Wright Mach ams meet the High Point chapter of the administrative management society will meet wednesday Jan. 5 at the top of the Mart at 6 n m. The main speaker will be Joseph w. Gawthrop o f Greensboro former International president of the administrative management society. Gawthrop is a vice president of Pilot life insurance co. He is a native of Richmond va., was graduated from High school in Greensboro and from the executive program of the school of business administration of the University of North Carolina. He served in world War ii from 1943 to 1946. Having spent two years in Italy. Program chairman for the evening will he Art Lindley of the Adams Millis co. And member speaker will be Bill Shaffer of the Murray m. White insurance co. Sales profits up Indian head inc. Posted higher sales net income and earnings per share in 1971, James e. Robison chairman and Robert w. Lear president announced. For the year ended nov. 27, sales Rose to a record $446 million up 8 per cent from $414 million in 1970. Net income increased to $13.3 million from $12.2 million in 1970, a 9 per cent gain. Earnings per common share were up five per cent to $2 67, compared to $2.55 a year ago on an increased number of average shares outstanding. Two in one Woodrow Wilson was the Only . President to simultaneously defeat two other presidents in one election. He Defeated William Howard Taft and Theodore Roosevelt in 1912. Int Egon financial services Ima your Happy shopping store closed All Day monday for inventory downtown and Westchester mail regular store hours downtown open 9 30 to 5 30 except Friday 9 30 to 9 00 Westchester mall open 10 00 to 9 00 except saturday 10 00 to 6 of

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