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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Aug. 27, 1986)
Wednesday, August 27, IQSeAThe Battalion/Page 9 World and Nation ROTHER’S BOOKSTORES Open Late to Serve You 340 Jersey (across from Univ. Police) 901 Harvey (Woodstone Center) ajor banks lower lending rate 7.5 percent, lowest in 9 years ,om 'murJBlEW YORK (AP) — Major banks teamdlitsdsiy lowered their prime lend- iceoflinl rate from 8 percent to 7.5 per ry tolHt, the lowest in nearly nine years ematjHthe key interest rate. eace wT 111011 ^ l ^ lose cutting their prime today were New York’s Citi- asilitHk, the nation’s largest; No. 3 >1. Btise Manhattan Bank, New York; IhunpilQ. 5 Morgan Guaranty Trust Co., hmir.iNew York; No. 7 Security Pacific StepiNational Bank, Los Angeles; and No 9 First National Bank, Chicago. terjjBan Francisco-based Wells Fargo the nation’s l()th largest, ini- llu l al| liated the rate-cutting among major ij, ^Biks with its reduction late Mon- da'. The lowered rates, a response ttilast week’s reduction in the dis- ji^Bint rate, were effective Tuesday. ■But some analysts question how much the economy will respond to fuiliter declines in short-term inter- rrem ■ . esi rates, and note that an improved „t£^Bance of trade remains the key to aitv economic upturn. ■James Amiable, chief economist for First National Bank in Chicago, saii, “We have had rather substan tial growth in consumer spending in thi economy. ■“So what’s got to happen if this monetary policy is going to work is we've got to stop draining the com ing impetus from this increased spending on imports.” ■The Federal Reserve Board on fected Aug. 20 cut the discount rate, the in- :dtk- irest it charges on loans to financial r upuHstitutions, to 5.5 percent from 6 relOi:; percent. tcludfoB Itwas the fourth time this year the |Fed reduced the key lending rate, which the central bank uses to help irestriaBnal its intentions for a broad spec- :t resideBum of credit costs, nits MB Already this year, interest rates on anditlmoilgages and many other types of provio®edit have fallen to their lowest lev- J'els in nine years. But aside from the booming hous- Dg sector, the economy has re- ained in the doldrums. Fhe nation’s gross national prod uct grew a slight 0.6 percent from April through June, largely because of the effects of the burgeoning for eign trade deficit and weak oil prices on the nation’s manufacturing sec tor. Many economists believe the Fed’s latest rate cut, which was followed by the banks, was aimed at sparking the domestic economy by further de pressing the foreign exchange value of the dollar to increase overseas de mand for U.S. products. A weaker dollar makes U.S. prod ucts relatively cheaper overseas while making foreign goods more expensive in this country. The dollar has fallen sharply against the cur rencies of major U.S. trading part ners in the past year, but its effect on the trade deficit was not expected to materialize until later this year. The White Flouse and the Fed have been pressuring Japan and West Germany to match the latest discount rate cut to stimulate their own economies, while keeping the dollar from going into an infia tionary tailspin against their curren cies. So far, however, those two coun tries have resisted such a move, even though further declines in the dollar would act against their domestic manufacturers. &IM& MM PRESENTS THE PRE-PROHIBITION RUSH (PARTY BEFORE THE LAW CHANGES) TREEHOUSE I PARTYROOM SATURDAY, AUGUST 30, 1986 9:00 - ? 2AM ■VOUR PRRTV PROFESS IOMRLS- FOR ADDITIONAL INFORMATION CONTACT. BRIAN MENDELSON - 696-M72 SAMMY HOTLINE - 696-3959 lo am; t sit on then Projec. Zulu chief claims civil war has erupted in South Africa JOHANNESBURG, South Af rica (AP) — Mangosuthu Buthe- lezi, the moderate Zulu chief, said Tuesday the brutality of those who killed a supporter’s wife shows that civil war has begun among South African blacks. In Cape Town, a regional council voted to integrate the last whites-ordy public beaches on the Cape Peninsula. Council member Neil Ross said: “God’s own beaches should be for God’s own people.” The government said it will end on Wednesday the special in spections of cargo being trans ported from Zimbabwe and Zam bia, which have caused long delays. It said the 3-week-long “statistical survey” had served its purpose. Buthelezi, chief minister of the KwaZulu tribal homeland and one of the country’s most power ful black moderates, issued a statement expressing shock at “the cold-blooded murder” of Evelyn Sabelo, wife of KwaZulu legislator Winnington Sabelo. She was killed and her three children were seriously wounded in an attack on their home Friday night by assailants using a hand grenade and automatic rifle. “This indicates the lengths to which those who wish to make this country ungovernable wish to go in brutality and hideousness,” Buthelezi said.“It is un-African for women and children to be tar gets in a war and I am concerned about the extent to which this kind of crime will brutalize those who are at the receiving end. “The black civil war I warned about has now materialized.” Buthelezi’s opposition to politi cal violence and economic sanc tions has antagonized supporters of the African National Congress guerrilla movement and other militant opponents of South Afri ca’s white government. Cape Divisional Council mem bers voted 11-3 to open all beaches under its jurisdiction to all races. It oversees 20 beaches stretch ing along 70 miles of coastline, mostly in rural areas away from cities and towns. The city of Cape Town inte grated its beaches last year. Ac tion by the divisional council means all public beaches on the peninsula now are open. The government’s Bureau for Information released more de tails Tuesday about a confronta tion Monday between police and a crowd of about 500 blacks at a high school in Soweto, Johannes burg’s huge black township. • ’ It said a 22-year-old black man was killed and eight blacks were wounded when four plainclothes detectives fired birdshot to dis perse youths throwing stones at their car. The bureau said five wounded blacks, ranging in age from 14 to 25, were hospitalized in fair condition. Bureau spokesmen reported one other death from unrest, a black man found burned to death Monday in the Zwide township outside Port Elizabeth. inninnTmiiniiiiiiiiiiiiiiiiiiniiiiiiiiiiiiimiimmiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiii Specializing in STANDARD and | AUTOMATIC transmissions, CLUTCH, adjustments, and replacements (Both foreign and domestic) 1215 Tx. Ave. (at the bend in Tx. Ave.) Bryan 779-2626 Under New Ownership lome travelers left holding the ticket ■ WASHINGTON (AP) — While airline failures can leave thousands of travelers stranded and others holding worthless tickets on future I 'flights, neither the government nor (industry is showing much inter est in lifering help. ■ The shutdown of Frontier Air- ilines, which last weekend left an esti- | mated 17,000 travelers with tickets but no airline to fly, is the third time ice deregulation that a major U.S. rrier has suddenly closed down, ores of smaller airlines also have failed. Yet travelers who book on an air- ie that is in economic trouble are rgely gambling, consumer advo cates and travel industry sources said juesday. No airline is required to lonor a failed air carrier’s ticket and entual refunds are of little conso- lation because a ticket holder is far down the list of creditors in a bank ruptcy proceeding. “When a company files bank ruptcy, travelers are pretty much left to their own devices,” said Hoyte Decker, chief of the Transportation Department’s consumer office. “It’s going to depend almost entirely on what other carriers are willing to do on a voluntary basis.” Last week, the American Society of T ravel Agents called on Congress to create a $100 million revolving fund to be used to pay back travelers caught in an airline bankruptcy. The fund would be financed through a 25-cent surcharge on each ticket un til the $100 million figure is reached and be administered by the govern ment. But the agents and consumer ad vocates acknowledged that past ef forts to establish such a fund failed and there seems to be little govern ment or airline interest for the new proposal. The agents have yet to find a congressman to sponsor it and the Reagan administration has greeted it coolly. “If this plan isn’t implemented, there will be no plan at all,” said Chris Witkowski, executive director of the Aviation Consumer Action Project, an advocacy group founded by Ralph Nader. In the often cutthroat competition among airlines a carrier bankruptcy “can hit anyone at any time” with travelers having no protection unless they buy a costly special insurance policy, he said. Negotiations were still under way Tuesday to revive Frontier, a People Express subsidiary, but the airline said there would be no choice but to declare bankruptcy if a solution wasn’t found soon. Travel agents and airline industry officials said it could have been worse for Frontier ticket holders. Because of strong competition through Denver, LJnited, Continen tal and Western airlines all accepted Frontier tickets on standby basis in hopes of gaining good will. American Airlines, which does not have as large a stake in the Denver market, has refused to ac cept Frontier tickets, saying the trou bled airline already owes it money. And other carriers may become less accommodating as days pass. Loupot’s Means a Maximum Trade-In Deal Ole’ Army Lou is paying cash for used books, Aggies! Bring your summer school books back and get cash Keep the cash, but reserve your fall semester books before September 1 and get a free Aggie t-shirt. Then just drop by Northgate when you get back in town and pick up your books without waiting in line or digging through class lists and piles of books. Loupot’s means more cash for used books. □ □ □ □ "We care about Aggies - just as we have for over 50 years. Thank you for your business.” Old Army Lou "32 I Northgate 1335 University !nc. Shop Safeway! 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