Kigeo
The Battalion
Viewpoint
July 23,
By Jim Earle
Slouch
miozqfilm Ate a
‘Guess who has the microfilm of ‘Playboy’ magazine:
French now facing
employment crisis
By JACQUELINE GRAPIN
PARIS — In contrast to the United
States, where labor mobility and other fac
tors make for a normally high jobless rate,
France is accustomed to low unemploy
ment. So when joblessness here hits Amer
ican levels, the French are facing a crisis.
That is the current situation. Official
figures show 1.6 million unemployed —
four times the number seven years ago. As
in the United States, about 7.5 percent of
the labor force is out of work.
The issue of unemployment was the
main subject of the recent French election
campaign, and the jobless rate probably
contributed to former President Valery
Giscard d’Estaing’s defeat by Francois
Mitterrand, the Socialist leader.
Now, as he did during his campaign, Mit
terrand promises to cope with the problem
by increasing public jobs, reducing the
work week and introducing early retire
ment. It remains to be seen, however,
whether the French economy can afford
such programs.
Compared to other European nations,
France is in better shape than Britain and
Belgium, where unemployment has
reached double-digit levels, but worse ofl
than West Germany and The Netherlands.
Still, conditions here are serious.
For the first time since the end of World
War II, the number of job-seekers is grow
ing faster than employment possibilites.
And the near-term prospects are even more
unfavorable.
Despite chances for an improvement in
the economy, experts forecast some 2 mil
lion unemployed next year — without any
increase in the labor force as a whole.
As usual, women and youths are most
severely affected. Of the total number ol
unemployed at present, 55 percent are
women and 45 percent are below the age
of 25.
Surprisingly, skilled factory workers and
office employees have been harder hit than
their unskilled counterparts. The highest
category among the jobless is skilled white
collar workers, who represent 31 percent of
the unemployed.
The problem can be attributed to an
assortment of elements that have caused
the current recession. A main element,
though, has been the steep rise in oil prices
due to the soaring value of the dollar, which
has increased in relation to the franc by
nearby 40 percent within recent months.
As a consequence, French business
activity has slowed down drastically, throw
ing workers out of jobs.
Coping with unemployment has not
been a major priority during Giscard’s term
in office. His administration had largely
hoped to hold the jobless rate in check in
the hope that the situation would improve
as the ecomomy regained momentum and
as demographic changes reduced demands
by youths for work.
In other words, Giscard had anticipated a
“natural” solution to the problem — even
though, he realized, it would create hard
ships for young people during the immedi
ate future.
Mitterrand refuses to accept the idea that
unemployment cannot be fought more ac
tively. The Socialist platform envisages
210,000 new jobs between now and the end
of next year, most of them in government
health and welfare projects. Beginning in
1983, the Socialists say, some 40,000 to
50,000 additional jobs will be open each
year.
This is supposed to come about in part by
shrinking the work week to 35 hours and
making retirement mandatory at the age of
60. The Socialists also plan to accelerate
training programs preparing youths for
jobs.
Though their political influence has been
curbed in parliament as a result of the
strong Socialist election victory, the Com
munists may exert pressure through their
labor union for their platform, the creation
of a half-million public jobs.
But even the Communist labor union
realizes that the economy is too weak to
produce improvement overnight. So far,
therefore, it has displayed signs of modera
tion.
The big question, of course, is how the
Socialists intend to foot the bill for their
unemployment cure. Bigger government
expenditures for public programs means
higher taxes that slow down business and
reduce job opportunities.
The job picture might not have gotten
brighter had Giscard been reelected. But it
will test Mitterrand’s considerable policit-
cal talents — and it may prove to be his
undoing.
Editor’s note:
Grapin writes on economic issues for Le
Monde, the Paris daily newspaper.
The Battalion
U S P S 045 360
MEMBER
Texas Press Association
Southwest Journalism Congress
Editor Angelique Copeland
City Editor Jane Brust
Photo Editor Greg Gammon
Sports Editor Ritchie Priddy
Focus Editor Cathy Saathoff
Make-up Editor Greg Gammon
StaffWriters Bemie Fette, Kathy O’Connell,
Denise Richter,
Cartoonist Scott McCullar
EDITORIAL POLICY
The Battalion is a non-profit, self-supporting newspaper
operated as a community service to Texas A&M University
and Bryan-College Station. Opinions expressed in The Bat
talion are those of the editor or the author, and do not
necessarily represent the opinions of Texas A&M Universi
ty administrators or faculty members, or of the Board of
Regents.
The Battalion also serves as a laboratory newspaper for
students in reporting, editing and photography classes
within the Department of Communications.
Questions or comments concerning any editorial matter
should be directed to the editor.
LETTERS POLICY
Letters to the Editor should not exceed 300 words in
length, and are subject to being cut if they are longer. The
editorial staff reserves the right to edit letters for style and
length, but will make every effort to maintain the author’s
intent. Each letter must also be signed, show the address
and phone number of the writer.
Columns and guest editorials are also welcome, and are
not subject to the same length constraints as letters.
Address all inquiries and correspondence to: Editor, The
Battalion, 216 Reed McDonald, Texas A&M University,
College Station, TX 77843.
The Battalion is published Tuesday, Wednesday and
Thursday during Texas A&M’s summer semesters. Mail
subscriptions are $16.75 per semester, $33.25 per school
year and $35 per full year. Advertising rates furnished on
request.
Our address: The Battalion, 216 Reed McDonald Build
ing, Texas A&M University, College Station, TX 77843.
United Press International is entitled exclusively to the
use for reproduction of all news dispatches credited to it.
Rights of reproduction of all other matter'herein reserved.
Second class postage paid at College Station, TX 77843.
It’s your turn
Patron complains about GTE
Editor:
GTE in its never ending efforts to pro
vide better, more complete service and
convenience to its captive customers has
flubbed it again. You’re probably wonder
ing why anyone would be cricizing GTE
just after they installed those marvelous
push button phones in all the offices and
dorms on campus.
Well, besides being a little late (the push
buttons were supposed to be installed the
first week of the first summer session) and
besides the inconvenience many of us in
Dorm 11 had to go through when our
phones were “accidentally” disconnected
for two weeks the main problem is that
none of us can call collect from a dorm
anymore.
It really was nice every once in a while to
have the convenience to check up on your
folks. Like finding out how your old man
was recovering from his latest heart attack
or how the dog you grew up with chased a
car too close one too many times, little
things like that.
Sure we could sign up for long distance,
that’s exactly what G.T. E wants. We would
have to pay a hook up fee, lay down a de
posit for calls that won’t be charged to us
and then wait another two weeks for them
to hook us up. If you think about it, that’s
quite a hassle for the three weeks left of
summer school.
Why do we have to send out a search
party to find a pay phone just to make a
collect call? Why do pay phones get better
more complete service than us? Why can
business phones on campus call collect?
What makes us second rate citizens?
I’d complain directly to the head man
agement at GTE but it’s long distance.
Richard Berthelsen
Graduate Student
More about 'Warped'
Editor:
We would like to add our two cents
worth to what seems to be the hottest sub
ject of Summer School 1981, the “Warped”
comic strip. Granted this is not an earth-
shattering subject, but we feel it deserves at
least a small amount of consideration.
Our first point is in response to Noe
Guiterrez’s letter in last Thursday’s Batta
lion. We feel it is a student’s right to have
comics that are worth reading, instead of
ignoring. We also want to endorse C. Gaul-
din’s personal judgements of Scott McCul
lar s talents, or lack thereof.
With regard to the comic strip
“Warped ”, we feel it suffers from a severe
lack of artistic ability. Due to the poor
artwork, we often spend our time with
other pursuits rather reading “Warped”.
We also feel that many of the daily strips fall
short of the intellectual level college stu
dents should demand. Obviously, we don’t
need a thesis or scholarly report,It ^
“Unicorn lead a horse to water, fOOOOOO
can’t make her drink. Manyoftj a
fall in the poor taste category alsol t „
ance the strip of July 15 which detj
and the molestation which enstiej 210 Unit
J———"
With regard to that same slip
read, "It’s my strip, I’lldowhatlito
it, that seems to be a childishad|j<
ly selfish attitude for yjju to take.?!;
assume your job is to please as mJ
30,000 students as possible. J
On a slightly different note,ilf
resident of our dorm has hadanii
doing some work for the BattalionE
told the spot was not open at the! ri
of the summer. It would seemth
tor could have at least requested)
portfolio before making any finalij
In closing, we feel that the
should have a say in this situation
run a few strips from any “new til.
see what type of response you re*
C. Gauldin said in his leter, “Iti
beneficial to lx>th the newspaper
readers to either be satisfied wit!
comic strip or find someone who#
able to do a better job.” *
Rid I
Don Bfj
Damon Cret|
Norman I
David I
Temil
Al
rThe
R
Th
S&L’s have advantages, risk
United Press International
NEW YORK — Savings and loan associa
tions now have permission to hedge virtual
ly all of their assets in financial futures mar
kets and that could help the troubled indus
try. But the new rule will do nothing to
erase current losses and has the potential of
adding to the S&L’s woes.
Richard Pratt, head of the Federal Home
Loan Bank Board, told Congress last week
more than 363 of the nation’s 4,542 savings
and loan institutions are on the regulatory
agency’s troubled list.
The S&L’s losses stem from their port
folios of long-term, low-interest mortgage
loans — some still hold mortgages at 6 per
cent — while they are being forced to pay
record interest on new money, such as the
six month money market certificates.
But Pratt believes they can minimize
future losses by hedging and he said the
industry might be profitable today if the
new rule had been in effect a few years
earlier.
“Certainly over time as thrift institutions
become accustomed to commodity markets
it should limit their interest rate risk,”
Robert Hatcher, senior vice president of
the New York Commodity Exchange, said.
“It will help them today to deal with the
future. ”
Indeed the potential for profitability is
there but so is the risk of new losses.
Under the new regulations, when thrift
institutions must pay 141/2 percent interest
on $500,000 in six-month CDs, for exam
ple, they can take a short position for an
equal amount in three-month Treasury bill
futures — that is, sell contracts hoping to
buy them back at a lower price. If interest
rates rise the increase in their interest costs
would be offset by a profit in the futures
contracts.
However, if interest rates fall, any gains
they would realize from the drop in their
costs would be offset by losses on their fu
tures positions.
In an effort to inhibit speculation, the
FHLBB rules prohibit S&L’s from taking
long positions in futures, except in certain
cases connected with mortgage banking
activity.
It allows only the traditional hedge vehi
cle of short positions.
“The restrictions force the S&Ls to set
up a plan for operation in futures with the
intent of reducing interest rate risk,”
Hatcher said.
Susan Kelsey, a staff member of the
FHLBB, admitted there is no effective way
to prohibit speculation. “We can pro
nounce ‘thou shaft not speculate’ but there
is no way to prevent it,” she said.
S&L’s are expected to be slow in taking
the small society
IF Y0l)'££
advantage of their new freedomai 1
er said while the Comex has had i
inquiries,” he didn’t expect at
business right away.
James Sinclair, head of a cot
trading firm and a Comex menil'
however, “there is an army
salesmen heading out to get so*'
business. Some thrifts undoul#
succumb to sales pitches and hedf
cisely the wrong time.”
The wrong time would be toi*
when contract prices are at or
thereby locking in their historic
cost of money.
Sinclair noted that S&L’s “‘don 1
expertise or background in futurS
a proper decision and they’ll beck
on commodities traders, many 1
have very little experience in tij f
mics of interest rates. ” “It still isa)*
call,” Miss Kelsey said. “Butth
risk is that interest rates will keep
and if you’re not hedged you’re i f
trouble.”
by Brickj
£>UT-
3(s>ctf*
©1981 King Features Syndicate, Inc. World rights reserved.
7-Q