High Point Enterprise Newspaper Archives Jun 30 1974, Page 7

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High Point Enterprise (Newspaper) - June 30, 1974, High Point, North Carolina Worst since 1930s Wall Street suffering from revolution pangs new York the new York brokerage Community i going through its worst pangs since the 1930s. The remaining 518 member firms of the big Board Are suffering from an excruciating exercise in consolidations recapitalisation and hard nosed Cost cutting to Cope with the Bear Market s Low turnover and they All live in fear of worse to come fixed rate commissions on All transactions must end by next april i. The revolution on Wall Street will not be bloodless. Already. Dupont Walston has been divided up and has disappeared now Hayden stones merger with Shearson. Hammil will show whether greater site and massive cuts in overheads will work. Ironically the largest saving will be in the paperwork end of the business. This is where costly computers were installed to prevent the recurrence of the Black office Leisure of 1961. The computers were expected to Deal with a steady dose of 20 million share trading sessions but volume is Down from an average of is million shares daily last year to 14 million so far this. Much capacity has already been reduced brokerage House losses of the 1973 kind were avoided until april when 148 million was lost wiping out the Black Ink of the first three months and setting cd a new wave of merger talks. Kidder Peabody intends to Swallow Clark Dodge Shields intends to acquire Model Roland. So far this year 13 firms have gone out of business and five have been merged last year 73 firms shut their doors and 33 were taken Over. The decline in volume and the Bear Market fall in the value of shares on which the percentage commissions Are based caused a 17 per cent fall in commission income last year compared with 1971 a and that was in spite of a to per cent increase in commission rates. American brokers arc major capital raisers. And the number of Public offerings is Down to Iso last year. The Public is shy of Locking its Money away in new or old stocks and Bonds. To some extent the newer games in options trading the newly fashionable one of commodity trading and the straight banking profit of earning interest on customers credit accounts stemmed the losses the capital raising mechanism of Wall Street would be seriously injured by the sort or rationalisation that a helter shelter collapse would bring. The brokerage infrastructure is too big for the amount of business done but must slim gently. Yet Washington goes blithely on toward a Brave new world of pure Competition propelled by an archaic dislike of the old. Arrogant and car Elised Wall Street that was. But Competition among the weak might mean the destruction of All. Stocks Are not carrots. The value of a Stock depends on the existence of a healthy Market. Destroy the health of the Market by Over Competition and the cheapness of the commission will be Over shadowed by the cheapness of the Stock. Unhappily the securities Industry is riven by internal dissension. One of the few legislative victories won by a Clumsy big Board Over some of its rivals was that the Senate accepted a provision to Van the third Market a the trading in listed securities on the Over the counter Market a if the auction Market is threatened with destruction negotiated commissions the Central Market place and a composite tape with All the nation s trades in securities All seemed like Blueberry pie and motherhood a few years ago. But today As attrition besets the securities Industry and half a generation of investors Are numb from a Long Bear Market these innovations seem much ado about nothing. Merrill Lynch Pierce Fenner and Smith has just raised commissions by an average of 5 per cent on trades Between 15.000 and $300,000, which investors would be glad to pay if Only they could make some Money in the Market. Recently the chairman of Merrill Lynch Donald t. Regan predicted an increase of a third in the number of common Stock owners to 42 million by 1980. Assuming inflation is controlled and the capital gains tax is lowered to release Stock holdings that people will not sell now. Free entry is upheld by court compliance investigators for the occupational safety and health administration can enter a work site for inspections purposes without so much As a by your leave notes a Commerce Clearing House report. They do not need search warrants to enter workplaces to investigate Job safety and health conditions according to a . District court judge for the Southern District of Georgia the firm had refused admission to an inspector until the company s attorney a whose office was 200 Miles away a was present. The Secretary of labor had filed for an order allowing the inspection. And the application was approved. Also the firm s efforts to stay the judge s decision until appeals Are completed were denied by the . Appeals court and three justices of the u. S. Supreme court. The Federal judge held that the Law allows entry without a warrant or probable cause to see whether employers were in compliance with the mandates of the Law Quot it is obvious that the act confers no right upon any representative of the Secretary to make inspections or searches unconnected with the objects of the particular legislation. The right of inspection is confined to structures machines and equipment. Trade winds High Point Enterprise sunday Jane 38, 1974 to fed risks recession by Lou Schneider North american newspaper Alliance new York Federal Reserve chairman Arthur bums has taken a tremendous Gamble to curb spiralling inflation according to business week mags Tine it says Burns and his colleagues recognise their policies will cause casualties and a number of weakly financed companies will probably fall that the fed is risking a recession in 1975 and a liquidity crunch in the United states then it recalls that bums when As an economist observer years ago. Said a a restrictive monetary policy. Of pursued very Long will damage the Economy. A it is official that the Federal Reserve the nation s Money manager has set a restrictive monetary policy to fight inflation by slowing the growth of outstanding dollars the tight policy could continue longer than the fed has Ever tried before. Fed figures show that Ordinary business borrowing continues very Strong and that wholesale Price Index figures Are at an annual inflation rate of 16 per cent thus the fed anti inflation fight will go on which Means no near term drop in various interest rates. Director John Dunlop of the president s Cost of living Council is More pessimistic about the inflation rate than other administration officials. He sees the present inflation continuing to parallel the climb in unit labor costs. The White houses new top level economic chief Kenneth Rush says the administration is determined to curb inflation with the old fashioned remedies of fiscal and monetary restraint a we cannot Stop it immediately without plunging the nation into a depression a and i pm Phatate depression we Are going to slow it Down Over a period of time in such a Way As to avoid a depression or a recession and will continue the fight no matter How Long it takes Rush said he will drive ahead with continued tight Money policies in Hopes of a balanced budget in 1976 Here show managers of important investment Money View the administrations anti inflation situation with All top level officials determined to halt the inflation no matter How Long it takes and at risk Cost there Isnit much room for loan interest rates to come Down any time soon a or for the Stock Market to extend technical rallies Wilbur m. Currie Ciu would like to help your family s future. Coll him a 885-0623. Wha $650>l b play it Gool you cant afford to simmer All summer. But you can afford to have of Whirlpool Central air conditioning installed for As Little As turf Loo Cius Cit ctr pc Al Ano add Quat of cts wow Trade in your old window units for Central air conditioning today pm warn to Liol i y Cali rft9-9a77 Hunter heating amp air conditioning wite insurance talk to the int Egon listener. Since both partners contribute both should be protected. Robert Mccuiston . Us s. Hamilton St. Tel 883-0424 int Egon mum Sci we do everything but take the trip for you Thot s our holiness to Toke Core of Oil the Pesky details of arranging transportation accommodations sightseeing shopping Leisure time Etc. We have representatives throughout the world to help us plan and arrange your vacation or business trip abroad. Or if you d prefer on escorted tour or cruise we be Happy to take care of that too. Chances Are Well save you time and Money. Be film trawl moms Avail ult tax a a Al Yaklic. World travel Agency car Una Moto Chub 1 i Sui tem of Swik to Ca Ralmon 759 North mom St. Tai. 882-8126 Usu who said women can to handle Money not us women make up a Large portion of our savings family. There Are single girls saving for that glamorous vacation new wives trying to accumulate the Down payment on a Home and mothers preparing for their children a education. And we help them by adding 5 1/4% daily interest dividends every Calendar Quarter. Our lady savers May not save much at a time but they save a Little something regularly. After All a girls Best Friend is her hard working perpetual passbook savings account. It works while she works. And that makes a big difference. Rate maturity annual yield Type savings 6%% years Malaya 6.98% certificate 6% 2 years 6.72% certificate 6v4% i year 6.45% certificate sy4% anytime 5.39% passbook a of saving and div Dond a loft to compound a a full Yaw on Tho now High rata Carti Flatos fed re Radnor to at Tow a mud veto Krak a 9l><toy fad of comm if withdrawn poor to maturity and do a Hamm an a withdrawal revert to the passbook rat perpetual saving Sand loan association Sas North main in Mion Point a Soss South main in Archdale a Westchester mall

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