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.
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