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Indiana Tipton Tribune Newspaper Archives Sep 8 1976, Page 5

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Tribune (Newspaper) - September 8, 1976, Tipton, Indiana I A? y. . S’- ■• >,V &■ I r> 'K-' 'iyy^ r s w M 'M: Business mirror NEW YORK (AP) — The question of just how low we can push unemployment before producing an unacceptable rate of inñation is becoming one of the overriding issues of the debate between Democrats and Republicans. Both agree that there is a limit. Both agree that there comes a point beyond which the only workers remaining are those of low producitivity, and the only available plant capacity is of the same marginal quality. Nobody seems able to demonstrate at what point the inflationary line is crossed. Four per cent? Six per cent? The answer, so important in terms of prices and jobs, is debatable, and probably will remain so in view of the current poor state of our knowledge. Not only is there considerable question about the real rate of unemployment — some say the statistics overstate the case, some maintain it understates — but there is uncertainty also about the level of available plant capacity. The latter measurement, less well known to the general public than the jobless rate, is devised to provide fed<>ral and private officials with an understanding of how near capacity is the nation’s industrial machinery. To encourage ;:urther' production when plant utilization is near capacity is to invite shortages and inflation. To attempt to curtail plant expansion when more s;pace is needed also flirts witli those maladies. Are we sure, therefore, that we know when we are nearing capacity? No, we are not. Several years ago Hinfret Associates, a consulting organization, began questioning the figures, partly because some customers maintained the figures ‘were wrong, partly because their own surveys were in disagreement. The matter was brought to the attention of the Fed to the secretary of commerce and to other public officials. The Fed’s figures showed there was a lot more capacity to be used than really existe<l, said Pierre Rinfret. The General Accounting Office began an investigation into the manner in which the Fed and private concerns measured capacity' because, inevitably, wrong figures mean wrong policy. On June 26,1976, a governor of the Federal Reserve System, Henry C. Wallich, conceded in a speech before the Western Economic Association that a review of the figures showed that indeed they were wrong. “Thus it happened that in 1973,’’ said Wallich, “when the Federal Reserve and McGraw indexes (McGraw-Hill) still seemed to signal ample capacity in most lines, we were, in fact, experiencing severe bottlenecks and were very much surprised thereby If the Fed had known the true situation, in all probability the nation’s monetary policy and private investment strat^es would have been changed, and the inflation-recession that followed might have been muted. Season for business NEW YORK (AP) — It’s all over folks, the reign of rest is now behind us, replaced by the dynasty of demand, of do-it-now-and-don’t-dally. Labor Day is done, and now we get down to brass tacks. No more loafing, except for a wistful sigh about how did it go so fast. This is the busy season. All the business conferences that should have been spaced throughout the year are now crowded onto the calendar. Everyone is inviting everyone else to something or other. School begins. Politics get mean. The car dealers announce the new fall models. The advertising departments plan their budgets. The new TV shows begin. Magazines get thicker. Middle management execs plan their big move up the corporate pyramid. Baseball refuses to give up the calendar and football makes Xs all over it. The weather too gets busy and confus^, chilling World Series fans and scorching those at the homecoming game. Only the oldtimers can enjoy the Indian Summer laziness at the resorts, intentionally taking theiri vacations when others weren’t avoidirg the crowds, the confusion and the high costs. But back at the office and plant it’s all business The memos said from one department to another. Guilty from a summer of sailirg and golf, the president dirticts a crisp demand to the chief financial officer, and that begins the chain that ends with you. Noses get closer 1o the desk. It is a fearsome season of the unexpected. Urgent reminders the boss left unattendc;d all summer suddenly become the subject of frantic demands that usually begin, “Whatever happened to ... ’’ But you’ve forgotten, of course. Your spouse calls. The children need new gym uniforms. Is there any mioney in the checking account:? Of course there isn’t; it w£is all spent during the summer. Yes, you’ll do what you c^n at lunchtime, a loan or something. By some savage rule or habit of human conduct, this is the time when the insurance agent may announce that your automobile bill will be a bit higher for the next year, say a couple of hundred dollars or so. The bank calls. You casually forgot the July mortgage payment! No wonder you had that free-spending mood that comes when for no understandable reason you have a couple of hundred dollars more than you thought you had. But this you can take, because during a summer evening of reflection on the rear terrace you and your spouse concluded that certainly you are worth a lot more money than you’re getting, and that by golly you’re going to get it. But now that the time is really here the circumstances don’t seem to be right. No, this is a time when everything speeds up but the financial fuel. The company isn’t doing as well as it should, says the boss, and we’ve all got to pitch in and get things moving again. It’s time for work. FIRST FEDERAL Savings & Loan Says: P You’re heading in the right direction...'^ If yoa’re heading la Flml Federal la depoall .vour nianey in a lime eerlifieate aeeon nl! ^ Invest your money in a time certificat e account which pays the maximum interest. A time certificate account lets you put money away for the future, insuri ag your savings up to $40,000. Earl úmj t4 Stpasit It iaj tf wiNiIraaaL lESiUn PASSIOfK S%%>CiMPfilltEi SAILT CERTIFICATES OF DEPOSIT TEiMS IHIIINII AMT. 1 Yr. SlyOOO IIITi 6.50% ANNilL ÍIIL» IF IIV. OtMFttttil 6.51%2»A Trt. SlyOOO i.75% 7.08%4 Trt. SlyiOO 7.50% 7.79%• Trt. SlyiM 7.75% S.17%a BOB DYLAN’S HOME ON THE HILLS. This is the nearly-completed home of singer-songwriter Bob Dylan on a hill above the cliffs of Malibu, Calif. The home, called a “terrible mishmash” by a county building inspector, was started several years ago. The cost is now nearing $2 million. Save up to 45^ on tbe coffee that^ always ^Good to the last dropT Even    savings on the 2-Ib.or3-Ib.size! (Cut out coupon with heavy broken line) Big savings on the 1-lb.size! (Cut out coupon with light broken line) 2F NBO-3023-7 Save 2r when you buy one 1-lb. can of Maxwell House" Coffee. STORE COUPON 2l< Use the coupon of your choice on A.D.CrCoffee or any other can of Maxwell House" Coffee. (One coupon only.) CO CO CD lo the retailer: General Foods Corporation will reimburse you for the face value of this coupon plus 5« for handling if you receive if on the sale of the specified product and if ^ upon request you submit evidence thereof satisfactory to General Foods Corporation Coupon may not be assisned or g transferred Customer must pay any sales ta* Void where prohibited, taied or restricted by law Good only in USA Cash value l/20t Coupon will not be honored if presented through outside agencies, brokers or others who are not retail distributors of our merchandise or specifically autho n/ed by us to present coupons for redemption For redemp tion of properly received and handled coupon, mail to General Foods Corporation. Coupon Redemption Office. P 0 Box 103 Kankakee. Illinois 60901 This coupon good only on ptirchase of product indicated. Any other use constitutes fraud Offtr expires November 30,1970. LIMIT - ONE COUPON PER PURCHASE GENERAL FOODS CORPORATION ■45^ N8O-3024-7 Save 45» when you buy one 2-lb. or 3-lb. can of Maxwell House'Coffee. _____45^

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