Pacific Stars And Stripes Newspaper Archives Nov 29 1982, Page 21

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Pacific Stars And Stripes (Newspaper) - November 29, 1982, Tokyo, JapanMonday november 29, 1982 Pacific stars and stripes business 21 higher interest on savings in offing Washington a in a move that could mean More interest on savings accounts for americans regulators have voted to allow federally insured Banks and savings associations to raise interest rates As High As they want on anew $2,500-minimum account. The account authorized by Congress Las month is designed to help Banks savings and Loans and other financial institutions win Bac customers they believe they have lost to burgeoning Money Market Mutual funds that pay High rates. The depository institutions deregulation com Mittee considered going even further debating whether to approve an account with no minimum Deposit As Well As no ceiling on interest rates. That would have made the accounts accessible to Many More americans since not everyone has $2,500 to invest. But that idea failed on a 3-2 federally insured Short term savings accounts Are subject to interest rate limits. The familiar passbook account for example is limited to 5.5 percent at savings and Loans and 5.25percent at commercial Banks. Money Market Mutual funds which have soared to 20 percent and higher Are now averaging about 9 percent interest. The new account which May be offered beginning dec. 14, is not required to offer any set rate. In fact a Bank could offer it at a rate under its passbook rate. However the Banks lobbied for the authorization with the Clear idea that it would allow them to compete More evenly with the High rat private funds that have tripled to about $230 billion in assets in the past two years. The investment company Institute a Trad group for the funds has protested saying the fact that the Bank and so accounts will be federally insured will give them an unfair advantage. However fund spokesmen have said they were confident the new account would not be enough to allow Banks and a is to whittle Down the funds assets. Taking the opposite View Roy Green chairman of the . League of savings associations said that depositors will see this a absolutely the Best account in America Green s group estimates the account will attract $80 billion to $100 billion to savings institutions by the end of next year with $20billion to $30 billion coming from outside the Industry. The fact that much of the Money seems certainty come from lower interest current Bank and so accounts was one Factor in the committee s decision to set a minimum Deposit and thereby slow the possible Drain from passbook accounts. Committee member Paul Volcker chairman of the Federal Reserve Board said a vote for no minimum looked to him like a step toward making interest rate limits on current accounts irrelevant. I Don t know Why the committee would want to move in that direction he said contending that doing away with All interest ceilings Wouldhave disastrous effects on the earnings of Law authorizing the new account ordered that it be made directly equivalent to an competitive with the private funds. Other features of the accounts As with Many funds depositors May writ checks on their deposits though they will be limited to six transfers of any kind per month including three third party checks. Depositors can make unlimited withdrawals but their interest rate will be reduced to 5.5 percent if their average monthly balance fall below $2,500. Banks and a is May guarantee a certain rate for one month a guarantee the funds cannot make since their interest payments Are based on their investments yields. Education key to productivity and Japan leads new York a you be hear the usual reasons Why japanese productivity has risen while in someway the efficiency of american production has fallen. Now consider this reason the japanese Are better educated in the basics. That much has been known forbears by educators but i Jias been a Long time awaiting acceptance by some of the economic Community which usually cited As reasons the loyalty of japanese workers or Quality control programs or the government business partnership i that nation. Or if not those factors then the laxness of americans who knew that apprenticeship systems worker incentives Access to capital and on line training of executives were needed but did Little about it for Many years. Now education has come to the fore. As a Factor in productivity we Overlook it said William Freund vice president and chief economist of the new York Stock Exchange which has just completed another productivity study. The japanese Are better educated he said. They Are More literate. They read better an understand better and have a better command of no wonder he said that they be made productivity Section of the Exchange s productivity study the fifth in series provides evidence for some of the conclusions to which Freund refers. About 95 percent of japanese teen agers now graduate from High school compared with approximately74 percent in the United states. Source Carnegie foundation for the advancement of teaching. And says Freund the japanese High school graduate has the equivalent of about four More years of schooling than the . High school graduate because of a longer school week and More weeks to the school both mathematics and science the mean scores of Japan s schoolchildren Are higher than in any other Superior to Japan s. In fact the Stock Exchange study states Japa Nese colleges Are a four year Vaca Tion free of demands. To some extent it might be said ayoung japanese demonstrates his mental capabilities in High school and then learns to apply them by working in on line jobs working on the factory floor until he under stands what is american student having Learned what he is told Are the latest management methods is disinclined to get his hands dirty. Instead he seeks to manage to manage people who probably cannot under stand what it s All about. There is a Strong Case for deepened business involvement in our schools the report the first purpose of our schools is to create Good citizens the second isto create productive More businesses it suggests might get involved in adopt a school programs in which com Pany personnel could Aid students through tutoring or provide the with equipment. Those students about 95 percent of japanese teen agers Grad uate from High school. But . Colleges Are better look for it at most Pacific stars and stripes bookstores and army and air Force Exchange outlets. Country and far higher than in the United states. Moreover there is less variability to scores which suggests that educational achievement in Japan i widespread. Source International study of achievement in mathematics published by John Wiley & sons. Thirteen percent of . High school students in a Survey could not perform Reading tasks designated functional 28 percent could not answer questions testing literal comprehension of what they read and nearly 10 percent could t write prose deemed marginally accept Able. The results Freund reports were much worse with regard to anything beyond Basic skills. Fifty three percent could t write a letter correcting a Billing National assessment for educational Progress comparison could be made at the College level simply because american institutions Are so far remember might become employees. Some companies of course Are already doing so. In los Angeles said Freund 105 businesses Are participating in adopt a school pro Grams and some High technology companies in various parts of the country have been known to donate electronic equipment. And Man big City companies with a need for clerks run their own Little schools to teach Basic mathematics and eng support seems to be greater at the College level. Inter National business machines corp., for example is now deciding which colleges will Benefit from a $50 million program of Cash and equip ment Grants. The purposes of the Grants is to update engineering courses because says John opel president training people who can make the most of the new technologies requires close cooperation Between universities and

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