National THE BATTALION FRIDAY, FEBRUARY 13, 1981 Page 11 Despite Reagan economic warning January consumers increase buying f MANOR EAST 3 * * FRIDAY AND SATURDAY United Press International WASHINGTON — Consumers are surprising financial experts by significantly increasing retail pur chases despite interest rates and uncertainty about President Reagan’s still-secret economic plan. A Commerce Department re port released Wednesday showed retail sales for goods ranging from cars to garden supplies rose to $184 billion in January, a 9 percent increase over December. It marked the eighth straight monthly increase. But what star tled the experts was the size of the jump, considering recent talk of economic gloom and doom. Just last week, Reagan said the country was in “the worst econo mic mess” since the Great De pression and was threatened by an “economic calamity of tremen dous proportions.” Next week, Reagan unveils specifics of his plan to remedy an economy that — despite higher retail sales — remains in trouble. The Commerce report showed sales of automobiles and related items rose 14.1 percent in Janu ary. Excluding these purchases, retail sales increased 3.56 per cent. “This definitely was stronger than expected,” said Dave Ernst, vice president of Evans Econo mics, Inc., an investment counsel ing firm. He said a poll by his firm found most experts anticipated an in crease in January, but only about half of what the Commerce De partment found. However, Jeff Edelman, an analyst who follows retail trade for the brokerage firm of Dean Witter Reynolds, appeared unim pressed. “During this period of the year, when you’re going from the big gest month, December, to the smallest month, January, you quite often get quite a bit of statis tical distortion,” he said. Edelman said auto sales, which fueled the overall surge in retail sales, was due not to demand but rebates. Even with the increase in sales, last month was the auto industry’s worst January, in terms of sales, since 1975. U.S. automakers sold 469,832 cars, down 20.1 percent from Reagan promises to put Hispanics in top positions United Press International WASHINGTON — President Reagan promised national Hispanic leaders Thursday he’ll soon name five Latins to top-level administration posts — a pledge one White House aide said should smooth some “understandably miffed” feelings. Speaking with reporters after a lunch hosted by the president for leaders of 20 Hispanic organiza tions, Raul Yzaguirre, president of the National Council of La Raza, said Reagan is “clearing” five Latins for sub-Cabinet appointments. Reagan gave no details on the appointments, Yza guirre said. “The substantial dialogue was quite minimal, he said of the White House lunch. Other sources said later Latins likely will be named to the Immigration and Naturalization Ser vice, the Small Business Administration, and the Commerce and Treasury departments. Yzaguirre, one of 12 Hispanic leaders who told Reagan in a letter last month that his failure to appoint a Latin to the Cabinet was a “very negative signal,” said Thursday the president now seems “more sensitive.” Although he said none of the lunch guests asked Reagan why he waited so long to meet with Hispa nics, a delay pointedly noted in last month’s letter, Yzaguirre said Reagan “indicated his concern for continuing access.” Ernie Garcia, staff aide to Reagan’s public liaison assistant, Elizabeth Dole, said Hispanics and other special interest groups will be handled through Dole’s office. He said Dole “has long been trying to arrange” Thursday’s luncheon. Garcia, who worked on Reagan’s presidential campaign, said Hispanics have been “understandably miffed. It’s been so long and they hadn’t heard anything from the president.” Garcia said Thursday’s lunch, opened briefly to photographers, marked the start of cooperation be tween the administration and the nation’s fastest- growing minority. “Not in a symbolic way, but substantially,” he said. But not all the guests gushed optimism. David Montoya, president of the Mexican-American orga nization IMAGE, said Reagan tried to reassure His panics his administration will cut only welfare prog rams that overlap each other. “One example he used was the school lunch prog ram,” Montoya said, “But I find it hard to believe that someone who is eating a free breakfast and a free school lunch is eating too much.” Cabinet members accept Reagan's sweeping budget cuts United Press International WASHINGTON — President Reagan is reviewing his proposed budget cuts with Cabinet mem bers who thus far have voiced no opposition — apparently having accepted cutbacks as part of their jobs. White House press secretary Jim Brady said a “spirit of consen sus” has prevailed during meet ings between Reagan and Cabinet officials who have echoed his con cern for bolstering the economy with fiscal restraint. Post reported the administration has scaled back its forecast of how much the actions to be announced next week will benefit the eco nomy. It said new projections suggest slower recovery and higher infla tion than the optimism previously expressed by Reagan advisers. It quoted administration sources as saying inflation next year is fore cast at 7 percent to 8 percent, rather than the 6V2 percent rate projected earlier. The White House has suc ceeded in keeping media atten tion focused on its domestic prog ram. However, Reagan did confer Wednesday with his top diploma tic and military advisers on rising tensions in Poland. Reagan also tapped two friends for top diplomatic positions. William Wilson, a member of Reagan’s “kitchen cabinet,” was " chosen as his representative to the Vatican, and Leonore Annenberg, wife of millionaire publisher Wal ter Annenberg, was named chief of protocol. Reagan may hear some protests today, however, while meeting with the heads of independent agencies whose spending he appa rently is determined to cut deeply despite mounting opposition. Among them were the chiefs of the Appalachian Regional Com mission, the Tennessee Valley Au thority, the Environmental Pro tection Agency, the Veterans Administration, the National Aeronautics and Space Adminis tration, the Postal Service, the National Science Foundation and the Export-Import Bank. ^OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO CAMPUS THEATRE NOW SHOWING: 210 University 846-6512 GOLDIE HAWN & CHEVY CHASE ‘SEEMS LIKE OLD TIMES” Showtimes: 7:40 & 9:50 FRIDAY AND SATURDAY MIDNIGHT: At a budget session Wednes day, Reagan decided on final fi gures for the Departments of Health and Human Services, Agriculture and Interior. Labor and Commerce were to be re viewed today. The president will disclose these and other proposed cut backs in an address to Congress Feb. 18. Brady declined to say whether any of the federal programs under scrutiny are targeted for extinc tion. He said Reagan’s address to Congress will answer that ques tion. £ 000 2»th SKYWAY TWIN 3 f.*o ADULTS BOX OFFICE $3.00 OPENS 6:45 WEST 7:15 10:50 FEAR NO EVIL AT 9:05 Included in Reagan’s economic package will be an annual 10 per cent tax cut for three years. Reagan appears to be leaning to ward a reduction retroactive to Jan. 1. 7:15 THE FOG EAST 9:00 10:40 Besides examining budget costs, Reagan today planned to go to the Lincoln Memorial to place a wreath at the base of the Abraham Lincoln statue commemorating the birthday of the Great Emanci pator. Later in the day, he planned a luncheon for Hispanic leaders and meetings with Italian Foreign Minister Emilio Colombo and Qais Abdul Munim alZawawi, the foreign minister of Oman. On Friday, Reagan is to go to Camp David for an extended holi day stay and to work on his speech to Congress. Meantime, the Washington CHROME AND HOT LEATHER January 1980. Imported car sales dropped even more, by 20.7 per cent, to 170,000. Ernst said the most significant Commerce Department finding was a 2.87 percent increase in sales of durable goods. He said this was further evidence of a resump tion in credit purchases — a possi ble indication of renewed consum er confidence in the future of the despite high interest rates. Ernst said the figures show in terest rates “did a lot less damage to the credit-sensitive sectors of the economy than was expected.” John McGillicuddy, chairman of Manufacturers Hanover bank, said he expects interest rates to remain high throughout 1981 re gardless of what Reagan does. economy. A Federal Reserve Board re port, meantime, showed Amer icans added about $1.6 billion, or about 6 percent, to their outstand ing installment debt in December Major banks have been reluc tant to lower their prime rate to 19 percent from 1914 percent, as Morgan Guaranty Trust and Manufacturers Bank of Los Angeles did Monday. 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