Northeastern State University - Tsa La Gi Yearbook (Tahlequah, OK)

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F STAR TREK 10 ary Prime Rate of 18% May Loom as Banks’ Costs Leap; Fee Climbs to Record 1634 % By EDWARD P. FOLDESSY Staff Reporter of THE WALL STREET JOURNAL NEW YORK — The banking industry’s prime rate, which was pushed up to a record 16%% Friday, appears poised for further in- creases Starting as early as this week. Rocketing costs banks are encountering in gathering lendable funds, ‘analysts say, make almost certain a boost to at least 17% in the base lending fee to corporations. Indeed, money specialists warn an 18% prime rate is possible soon, especially if the Federal Reserve System once again is forced to tighten its credit reins. Some ana- lysts believe the Fed already may be head- ing in that direction. “A 17% (prime) rate seems to be in the cards,’’ says William Griggs, a senior vice president of J. Henry Schroder Bank Trust Co., New York. ‘‘The only question is whether it goes to 18%’’ or higher, he adds. CDs Show Pressure The pressure for further increases was especially evident in the market for bank tional Bank of Chicago, and Mellon Bank, Pittsburgh. Several banks coupled the prime rate boost with an increase in the broker loan rate, the fee charged securities dealers on loans backed by securities, as collateral. Ci- tibank, for instance, raised its rate to 164% from 16%. The move will mean higher costs for investors buying stocks on margin, or credit. The securities firms relend the pro- ceeds to margin customers, usually at % percentage point to 244 points more, depend- ing on the activity in their account. The steep climb in the prime rate has done little to slow corporate credit demand in recent weeks. According to Federal Re- serve figures, commercial and industrial loans on the books of the nation’s leading banks rose $82 million in the week ended Feb. 20. That followed a more than $1.2 billion surge the previous week and brought the to- tal of such loans outstanding to more than

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Students were changing also. Despite conflicts abroad and callings for resumption of the draft, most seemed more preoccupied with education than students of a decade before. Business and practical programs flourished while liberal arts were less popular. Northeastern’s school of optometry opened with a high enrollment. However, challenge was an important sign of the eighties for Northeastern. An economic recession threatened funding of higher education while projections ominously pointed to lower college enrollments across the nation. Rising gasoline prices called for mass transportation for commuter students who made up the largest sector of NSU’s enrollment. A renaissance of new ideas was the university’s promise of the eighties.

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The eighties couldn’t have come with worse signs of the future. Iranian militants took over the American embassy in Tehran and held hostage 50 U.S. diplomats. The Soviet Union invaded Afghanistan and threatened Middle Eastern oil fields. The United States was brought to the brink of war. Inflation soared to its highest level in over 30 years while a recession took the jobs of millions. Scandal continued when the FBI videotaped several congressmen taking bribes. This stressful beginning and the disappointments of the seventies left Americans extremely pessimistic. For the first time ever, opinion polls reported that parents did not believe their child’s life would be better than their own. The signs were clear but often disappointing. Safeway is complying with and pledges its continued support of he Federal Government’s Anti-Inflation Program APRIL 1979 PPLE TS L PAURGLY ENCED Pe ee Pt Ud SPIE DA VOM AE ee ae sete ak