Banner Graphic, Volume 13, Number 122, Greencastle, Putnam County, 29 January 1983 — Page 2

The Putnam County Banner-Graphic, January 29,1983

All indicators pointing up

c. 1983 N Y. Times WASHINGTON The government's index of leading economic indicators rose 1.5 percent in December, the largest increase in the last two years, the Commerce Department reported Friday. It was the eighth increase in the last nine months in the index, which is intended to forecast economic trends. The December rise, which was much more broadly based than the previous months’ gains, was seen by some government economists as another of many recent signals that a recovery from the recession is finally at hand. In addition, a companion index, which measures the current state of the economy, fell only 0.1 percent last month, the smallest decline in the past year. That measurement, the index of coincident indicators, fell a slight 0.2 percent in November. “The robust advance in December's leading index further strengthens the case for renewed economic growth this quarter,” said Robert G. Dederick, under secretary for economic affairs. Robert Ortner, the Commerce Department’s chief economist, said that January may be the first

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definite month of recovery and that there is an “even chance” that the unemployment rate would hold steady, or even decline, this month. At the White House, Martin S. Feldstein, the chairman of the President's Council of Economic Advisers, was a little more cautious. “A recovery beginning early in 1983 is looking extremely likely,” he said at a briefing. “I don't know when the recovery is going to begin,” he added. “The thing that we have is evidence that a recovery is more likely to begin than we would have thought a month ago. But I think it’s difficult to be confident whether it’ll begin in January or February.” Feldstein said the leading index is giving a stronger signal of recovery than a month ago because it shows a positive change in a “wide variety” of the index’s 11 components, instead of reflecting strong performances in stock prices and the money supply. The index has proved accurate in the past, forecasting all seven economic recoveries since World War 11. On average, the index began to rise three or four months before the recovery was apparent in current economic statistics.

Peace force Beirut bomb target

BEIRUT, Lebanon (AP) A motorcycle rider tossed a grenade at a French army truck in mostly Moslem west Beirut today, slightly wounding a French soldier in the first attack on the multinational peacekeeping force in Lebanon, a spokesman said. Lt. Col. Jean-Claude Marchais, spokesman for the French contingent of the 4,200member international force,

Banner-Graphic "It Waves For All” USPS 142-020) Consolidation of The Daily Banner Established 1850 The Herald The Daily Graphic Established 1883 Telephone 653-5151 Published daily except Sundays and holidays by LuMar Newspapers. Inc. at 100 North Jackson St., Greencastle. Indiana 46135. Entered in the Post Office at Greencastle. Indiana, as 2nd class mail matter under Act of March 7,1878. Subscription Rates Per Week, by carrier M .00 °er Month, by motor route *4.55 Mail Subscription Rates R.R. in Rest of Rest of Putnam County Indiana U S.A. 3 Months *13.80 *14.15 *17.25 6 Months ‘27.60 ‘28.30 *34.50 1 Year *55.20 ‘56.60 ‘69.00 Mail subscriptions payable in advance . . . not accepted in town and where motor route service is available. Member of the Associated Press The Associated Press is entitled exclusively to the use for republication of all the local news printed in this newspaper.

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Lifting his beer mug in toast at the Eire Pub in Boston, President Reagan wasn't celebrating his proposed SB4B million 1984 budget, just partaking of an unscheduled stop on a tour of high technology facilities

said the attack occurred as the troop-carrying truck headed from west Beirut to the Tabaris checkpoint at the entrance to predominantly Christian east Beirut. The wounded soldier was not identified and the spokesman said his injuries were minor. A Lebanese pedestrian was also slightly injured, the spokesman added. The attack was carried out by

Private plane that struck military jet victim of weather

NORFOLK, Va. (AP> - A private plane that collided with a military jet off the North Carolina coast Jan. 9 apparently had wandered into restricted airspace to avoid bad weather, according to a flight tape. Seven people aboard the plane were lost when an Air Force F-4C Phantom jet collided with the aircraft, w'hich crashed into the Atlantic Ocean. The pilot of the private plane, a Beechcraft BE-55, was told about four minutes before the collision that military aircraft were “right on your tail,” according to the tape, a Federal Aviation Administration recording of a conversation with the tower. The FA A released a transcript of the recording after the National Transportation Safety Board had completed its review, said Fred Farrar, FAA spokesman in Washington, D.C. The board has made no ruling in the crash, he said. The tape was obtained by

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in Massachusetts. The FBI has labeled as inaccurate reports that the pub visit interrupted a stakeout at the bar. (AP Wirephoto).

two people riding on a motorcycle and they escaped into west Beirut's low-income residential neighborhood of Basta, Marchais said. Lebanon’s state and privately owned radio stations gave similar accounts of the attack There was no indication of a motive for the assault The peacekeepers also include

television station WTKR in Norfolk and played Friday. Air Force officials declined comment on the tape. The collision took place in cloudy weather about 40 miles southeast of Jacksonville. N.C. The fighter landed safely with a damaged wing, its two crewmen uninjured. The Beechcraft BE-55 had been piloted by Henry H. Tiffany, a Waynesboro, Va., lawyer ferrying friends back from a sailboat cruise to the Bahamas. No bodies were recovered, although the Coast Guard found debris that may have come from the plane. According to the transcript, conversation between the FAA and the Beechcraft began about 4 p.m. on Jan. 9, after the Beechcraft BE-55 had just entered U S. air space in a restricted military zone. The collision occurred at 4:46 p.m. The North American Air Defense Command had called the FAA at 4:14 p.m. for identification of the plane. The FAA

Italian troops and U.S. Marines. Meanwhile, police said today that 32 bodies have been pulled from a bomb-wrecked PLO command center in eastern Lebanon, w hile the search continues for another 15 people believed trapped inside. Most of those killed in Friday’s blast were Syrian army and Palestine Liberation Organization security agents. •

was unable to identify the craft immediately, but radioed NORAD 23 minutes later that the plane was lost and wasn't hostile. Meanwhile, two F-4C Phantoms from Seymour Johnson Air Force Base in Goldsboro, N.C., had been dispatched to identify the aircraft, said Master Sgt. Bob Hanson. It was not known why the jet pilot came close enough to hit the Beechcraft. The visibility was described by the other F-4C pilot as “popeye,” meaning the pilots were totally dependent on instruments. The last tranmission from the Beechcraft was unintelligible, the FAA transcript says. A few minutes later, the FAA's Washington Center realized there had been an accident. “We had a mid-air,” one of the F-4Cs radioed. “... With another aircraft.” “They said it was with another aircraft. So they may have gotten too close.” the controller said.

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$lB9 million deficit in budget proposal

c. 1983 N’.Y. Times News Service WASHINGTON - President Reagan is proposing an $848.5 billion budget for fiscal year 1984 that keeps pace with expected inflation and leaves an anticipated deficit of $lB9 billion, provided Congress enacts a series of freezes and reductions in domestic programs. The budget Congress will get Monday assumes that the nation’s economic recovery is under way in the current quarter, will build steadily until midyear and then average 4 percent growth for the next five years. It expects unemployment to peak in the first half of this year, with the economy producing 1.6 million new jobs by fall and 4.6 million more by late 1984. Against this backdrop, the president proposes an increase of $43.5 billion in overall federal spending from 1983, with S3O billion of that increase going to the Defense Department. Military spending would rise from $208.9 billion this year to $238.6 billion in fiscal yearl9B4, which begins next Oct. 1. The president’s budget is only a starting point for Congress, which will hold months of hearings before appropriating money for the hundreds of programs operated by the federal government. Proposed budgets often bear little resemblance to the money bills ultimately adopted by Congress. The president sketched out his broad budget concepts in his State of the Union message Tuesday and will send his detailed budget to Congress Monday. Friday, the White House gave briefings and a 45-page budget summary to Republican congressional leaders, some of whom also met with the president. The summary became available to reporters throughout the day. In his State of the Union address, Reagan called for a comprehensive spending freeze as the centerpiece of the 1984 budget. The budget materials made available today showed that he intends to achieve sl9 billion in savings from a freeze on nonmilitary programs and another sl9 billion in savings through structural reforms of social programs, largely in health care programs and the civil service retirement system. In the domestic area, the budget summary revealed, the spending freeze is to be selectively applied. Most programs are to be financed at 1983 levels, but there are significant increases for the highway jobs program, veterans medical care, law enforcement, job training and employment services, aid to displaced workers, a college work-study program, the National Science Foundation and money for improving airports and airways. Cuts are proposed for mass transit. Amtrak, postal subsidies, energy research and economic development grants. Some revisions are also projected for programs such as food stamps, child nutrition, welfare aid to the elderly poor and subsidized housing in which benefits are based on the financial need of the recipients. Major budget savings will also come from six-month to one year delays in annual cost of living adjustments for Social Security and

Pacific braces for new storm

By The Associated Press Another Pacific rainstorm battered Southern California early today with heavy rain and 70 mph winds, toppling trees and washing out roads to cap a week of violent weather blamed for 11 deaths and statewide property damage estimated at S7O million. The week’s fourth storm which arrived late Friday also brought a repeat of the pounding surf that left hundreds of seaside homes and businesses dangling tenuously as breakers smashed at their underpinnings.

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other federal retirement programs, pay for federal civilian and military employees, and cutbacks in various federal health care programs. Taken together, these revisions would save $9 billion in 1984, the documents showed. The budget plan also calls for standby tax increases starting in fiscal year 1986 that would include a $5 a barrel excise tax on both imported and domestic oil and a 5 percent surcharge on individual and corporate tax bills. The president, meeting with some columnists at midday, voiced his optimism about the economy, drawing comfort from the callback of 21,400 workers announced by General Motors Thursday. “I’m greatly encouraged,” he said. “It’s significant in that it’s the indefinitely laidoff that they’re calling back. ” But high administration officials emphasized that the president’s budget was based on cautious assumptions about economic recovery. Congressional specialists for both parties praised the budget for its economic realism, though Republicans as well as Democrats predicted battles over several proposals, especially the military spending figures. In the last two years Reagan's budget planners have been faulted for overly optimistic economic forecasts that resulted in the administration’s vastly underestimating future deficits. A year ago, for example, Reagan's budget plan assumed the 1983 deficit would be $91.5 billion. It now reckons it will be S2OB billion. Even if all the president’s proposed cutbacks and freezes are adopted, along with the contingency tax proposals that face strong opposition in Congress, the budget plan forecasts deficits of $194 billion in 1984. $l4B billion in 1986, $142 billion in 1987, and sll7 billion in 1988. Without any changes in the current spending programs and taxes, the deficits would rise to $231 billion in 1984, $253 billion in 1985, $271 billion in 1986, $292 billion in 1987. and S3OO billion in 1988, according to these estimates. In a briefing for columnists, the administration officials acknowledged that one of the most debated elements of the 1984 budget would be the proposal to overhaul the civil service retirement system, which one official called “the most generous, the richest retirement system that exists.” The administration plans to reduce the costs of the retirement system from 37 percent to 22 percent of the federal payroll by boosting employee payroll contributions in two steps to 11 percent from 7 percent, and by phasing in over 10 years a 5 percent reduction in the annual retirement benefits for those who quit the civil services between aee 55 and 65. In fiscal year 1984, the Reagan budget plan anticipates savings of $1.4 billion from these proposed changes, and a sl6 billion savings over the next five years. But already Washington-area congressmen and senators, anticipating such a change, have begun to speak out against it as groups representing federal employees have begun to lobby on the matter.

Rain fell in sheets in the Santa Barbara area early today where widespread power outages were reported. Trees were toppled by the high winds, blocking roads including U.S. Highway 101 near Montecito, closing the southbound lane of the coast’s only north-south freeway. “We have major power failures,pporerw r er lines are down, minor slides andflooding,” said Santa Barbara County Sheriff's Deputy Martin Eberling. “On a couple of houses, roofs are beginning to come off,” he said. “It’s nothing major, but

Figures on farm income 'distorted?

WASHINGTON (AP) - An Agriculture Department economist says national farm income figures are being distorted by data on small “farmlike” establishments which really are not contributing much to the U.S. food supply. Roger P. Strickland of the Economic Research Service said one solution would be to redefine a farm to exclude the smallest units, but that this might be difficult politically. Strickland’s report was included Friday in a new issue of Agricultural Economics Research, a monthly publication of the agency. One-third of all U.S. farms sell less than $5,000 worth of products each year. Collectively, these farms consistently lose money on their production operations. When the smallest farms were included in the 1981 all-

overall it’s just horrible. Law enforcement officials and county highway workers were out in force monitoring roads threatened by mudslides and flooding as the National Weather Service predicted at least 2' 2 more inches of rain for the Los Angeles area. Crews were working through the night to strengthen the fragile lacework of levees in the Sacramento-San Joaquin Delta, where several agricultural areas have been flooded. Storms in California since last weekend caused 11 deaths and 21 injuries,

farm statistics, they reduced the total returns to operators bymore than 14 percent, the report said. Figured on the basis of returns per farm, the average was reduced by 44 percent. The current definition of a farm used by the Agriculture Department and the Census Bureau is “any place from which SI,OOO or more of agricultural products were sold or normally would have been sold.” In 1981, farmers with sales of less than $5,000 sold a total of only $2.53 billion worth of agricultural commodities out of a total of $154.28 billion. “Thus, this smallest third of all farms sold only 1.6 percent of the nation’s total agricultural production,” the report said. “The smallest third consistently exhibits negative returns to operators in excess of $2 billion.”