Page é, The Herald, Wednesday, September 19, 1979 U.S. banks rates to record 11 per cent increasing at an antual rale of nearly 19 per cent. Despite the recent con- certed. actions of the board to WASHINGTON (AP) The U.S. Federal Reserve Board ralsed ita bank lending rate to a record 11 per cenf Tuesday, continulng the the liberal members ta the board’s high-interest pol- icies. While the rise in interest raised fears among some lawmakers and economists that it will worsen the recession in the United States. charged when they borrow irom the Federal Reserve System. The board said in a in part te discourage borrowing by member Sbanks, indicating that the discount rate had become a It had increased the discount rate to,10.5 per cent on Aug, 16, That increase pushed up interest rates record 18 per cent in many CES, Volcker told Congress recently that there ig no al- ternative to higher Interest Ughten up credit, borrowing tren higher interest rates is almed at controlling . statement that its latest bargainrate whencompared throughout the economy, ratesas lo aginflationisat remains active and shart- ane Sea iriving up inflation by slowing growth ‘The discount rate is the increase, the second in just to the cost of borrowing including the prime lending its current high level, U.S, term interest rates continua borrowing costs for of the money supply, it has interest member banka are over a month, was intended elsewhere, rate of banks, now at a consumer prices have been to rise. . businesses and consumers, Including homeownera. The board: raised the decount rate from 10.5 per cent, which also was 4 . pecord. It has been steadily Increasing Interest rates Crosbie says hikes not inevitable here * since Paul Volcker took over | OTTAWA (CP) — Finance | The former Liberal continuss to Hw In. with the prime rate in going to be rushing after rise inthe Bank of Canada’s the already troublesome - as chairman last month. Minister John Croable said government as well as the But thia week, the U.S. Canada. Andthere has been them,” Crosbie told trend-setting bank rate is inflation rate, currently _ But the decision came on Tuesday that a further rise Progressive Conservatives prime rate — the rate speculation it could move reporters as he entered a kely. It now stands at a running at an annual rate of : gn almost unprecedented 4-2 in interest ratea is not have moved in step with charged by banks for loans above that level in the U.S. meeting of the Inner cabinet. record 12% percent, — 8.4 per cent. ' yote onhthe seven-member inevitable deapite a move changes in interest rates in to big borrowers with by the end of the week, There has been some A change in the central e central bank's most ; board, reftecting can- towardseven higher rates in the U.S, to keep thorn highes healthy credit ralngs — ‘'Americanbank rates are apeculation among financial bank rate is a signal to the recent increase in the * siderable opposition among the U.S. here and ensure that money moved to 13 per cent, equal still going up but we're not analysts here that another chartered banks and other rate less than two weeks rs prem ag ane Genel eet a ’ rates, inclu e prime Conservatives rate. mi June — started a round of higher interest rates at the chartered banks, affecting a range of consumer loans. Mortgage rates have jumped to 12% per cent from about 11% per cent when the Conservatives took power. That increase of 14 per- centage points adds about “It’s always possible there's some point at which you'd have to say m0,” Crosbie said Monday. ‘I'm sure there’s aome point at which the Bank of Canada is certainly golng to say no.” But where that point lics remained open to some BUSINESS DIRECTORY Plumbing - Heating - Commercial Servicing Resldential - industrial - Specializing Gas Fitting Intion thi i, $500 a year to the cost ofa and Sheet Metal Shop ; Yellowhead Hay A h Sail Row land , Fras ee, #100 mortgage sanenent 2 « ili ident e conomic Deve Charlie Belanger & Grain mooth sailing pretivenada, largest in Minister Robert de Cotret Canada, said Monday that higher interest rates appear inevitable because of the higher rates in the U.S. The higher rates are main- tained in Canada to ensure forelgn capital flows in to finance the country's huge deficit in trade and services. The deficit is expected to hit a record $7 billion this year, told reporters there is a trend in world money markets toward higher in- terest rates “but I don’t think they are inevitable.” "T'@ prefer not to make a forecast as to where they'll go In the next few months,”’ de Cotret said. He said the danger of not keeping rates In Canada above those in the U.S, ls an to the Herald! PLUMBING & HEATING LTP. ‘Unique Bathroom Boutique’ 44% LAKELSE AVENUE - Complete IIneo# livestock feed and supplement - Clean and utility graln - Founts and feeders for all Ilvestock - Dry dog & cat food - Pet travelling cages made to measure 3315 Clark St. 635-3867 P.O. Box 534 PHONE 635-9319 TERRACE, 8.C. V8G 485 OR 635-9320 Install & Service Gas, Wood & Oll Furances PHONE 635-6357 3212 KALUM up from from $5.8 billlon a AS D +, ear ago. outflow of capital and a E TSI E , % 450 J0HN DEER 1 GRADING we LAND CLEARING NORTHWEST PIPE taut that ow of money decline in the a r, which y , the value adds to on. GROCERY & LAUNDROMAT wera Sra Weck Basnriime LeveLina AND EQUIPMENT LTD. daar wenld drop frter, "“Youheveto lnk atitons ' That raisea the price case-by-case basis.” OPEN 7 DAYS A WEEK PIPE, PLUMBING SUPPLIES, PUMPS. , imported goods and adds to." Higher Interent rates have To Serve You HOSES. NUTS AND BOLTS, FENCING. . a slowing effect on Eoergreen _ ~ : _ economy because businesses TERRACE WATER SOFTENERS — AND MORE 1 et businesses WEEKDAYS 8-11 WEEKENDS 9-11 ; ' -o a Tek panston iid consumers §239 Keith Avenue - Near 8.C. Hydro INGS tend to borrow lees for A138 Lalas acai mearenee 635-7158 EARNINGS) rire, sie L < - a YOUR FRIENDLY CONVENIENCE STORE DAVE & ALLAN vicepfealdent | of the Canadian Real Estate Becker Milk Co. Ltd., As8ociatlon, sald the government may have little choice but to raise thé bank rate agaln If interest rates move higher in the U.S, Jackson said the supply of mortgage money is not as JAMES GRAY 4936 McDEEK three months ended July 31: 1979, $1,-324,378, 76 cents a share; 1678, $890,870, 51 cents, Harding Carpets Ltd., nine months ended July 31: 1978, GLACIER L Terrace Electronic Repairs Ltd. SERVING TERRACE & KITIMAT Lal a cenmerer gegilg : : iy, Philips, Magnavox, Zenlih : Sanyo, Fashiba MAon.-Sat. — 9 a.m. - 6 p.m. Friday — 9 a.m. -9 p.m. ‘4623 Lekelse ROFESSIONAL oS) M18 Legion Avene . Ja atte ntti TERIZED tne ne . we . $1,-516,824, loss, no ahare Sbundant as it has been in SERVICE A a Terrace, 8.6. figures; 1078, $1,490,650, loss, the last ‘year, ‘enabling DEPUT ty EPENDABLE Inventronics Lid., year Mortgage lenders to ralse rates more rapidly during the last few montha, It was an oversupply of money that kept mortgage-rate in- creases to a minimum in spite of Increases in other rates in the last year. ended May 31: 1979, $151,026/ 11 cents a share; 1976, $62,034, four cents, . sg S CARPET & FLOORING | INSTALLATION A Complete Glass and Aluminum Service UALITY 635-4543 YOU SUPPLY WE INSTALL 4 : “Any further bank rate in- FREE I he Se et av aac an DOLLAR | geri i ar . Ms Yard Concrele Mixer Avaliable for Rent. Lota wom " he aaid, TERRACE HOTEL GIFT CERTIFICATES ppg | WE DELIVER SATURDAYS hn Tepid -morigage rates could hit 134% to 14 per cent . by the end of the year. But he doubted they would remain there for long. In the meantime, he said, anyone taking out a mor- tgage should consider paying an extra one-quarter or one- half perce2’age point to get one with a term of only one or two years. PHONE 635-3936 F.4.H, READY MIX Construction Lid. For these Items’ : | mw hear teeth * bear claws » 5 7 ae Wwolt teeth, * beaver teeth = «=: | weoose or deer antlers tsingieor pair? MONTREAL (CP) — U.S. dollar in terms of Canadian sae ise funds at 3:30 pm. EDT WE ALSO SELL, SERVICE & REPAIR ALL YouR | Tiesday was up 7-100 at HOME BRUNEWICK PRODUCTS. alert tte was Avallable at the front desk of the acta New York, the Canadian $0.8587 and pound sterling TERRACE HOTEL was down 4-5 at $2,1480. b : — | S$ ¢ , {STARBOARD Mpntnteat |! STOCKS SAN JUAN Toronto stock market was MENTS 3212 KALUM STREET Plant Off Krumm Road TERRACE, B.C. Thornhill PHONE 635-2479 ofSCO Sfore..... Frees, =.’ to 30° Sailboats — & Accessories | | Sam 635-3001 (635-3546 J uso qmeome NORTHERN 2% to $43, Dominion Bridge 1% to $41, InterCity Gas 1% ‘ ’ ae Tat sharply lower at the close of to $17%, Electro-Knit e he STORE THAT AS EXERY THINL General Building Contracting active trading Tuesday. Fabrics 30 cents to 80 cents ies The TSE 300 index dropped and Scott LaSalle 17 centa to 9.85 to 1,719.06. The market followed a almilar steep decline at New York ae gold set record prices in the world markets. Volume was 8.83 million $1.90. McIntyre Mines dropped z% to $57%4, Denison % to $31% and Combined Metal two cents 45 cents, United Keno Hill Mines gained 3 to PUR TT os Whee ates ny : 2. ee Wayside Groceries ||}: | - “Aerio pecs compared with 7.9 million on bent sigma Mines ) ; me eure onday. el 2M, ; de LIGH] SS 4711-G Keith Ave. an hee Among industrials, Mountain States Falconbridge Nickel A fell 2%, to $66%, B.C. PackersB2 $11, Canada Northwest Land to $60, NuWeat Development % to $16 and Czar Resources A1% to $2, Murphy Olli, % to $14%. Canadian to 920% and Westcoast Pete Homestead Oila 1% tp #22% 1% to 28, . end Calvert Ges and Oil Bow Valley Industries ree seven cents to 95 cénta. Resources declined 1% to ee Se nter Your friendly convenience store 13) CBWE prises . vot CO-OP 3224 Kalum Street, Terrace Natural Foods — Books — Local Crafis | ANYONE CAN SHOP AT DELIGHTS... ONLY MEMBERS GET DISCOUNTS : MUSIC FOR ALL OCCASIONS HOURS: ! . 7:30 am - 12:30am: 10:00 am - 11:00 pm Weekdays Wayne 635-5684 Days 635-6235 Weekends ERNIE 635-4383 VANCOUVER (CP) — Prices were down in heavy trading Tuesday on the Vancouver Stock Exchange. Volume at close was 6,819,203 shares, Of shares traded, 196 ad- vanced, 177 declined and 144 were unchanged, In the Industrials, B.C. Re- sources Investment Corp. was down 45 at $74 on 250,400 shares and Canadian development board, Delta Petroleum waa down . st $4.50 on 199,000 shares and Action Resource Warrants ‘was up .03 at .43 on 140,150. Action Resources was up .02 at $2,22 on 111,200 shares and Northair Mines wae up 40 at 44.75 on 95,500, Musto Ex- ploratios waa up .05 at $1.75 and Iona Silver Mines was up AR at $1.72, On the curb exchange, West Trend Resource Warrants was unchanged at 60 on 62,600 shares and Oriana Development was up 4 at 30 on 77,500. Weat Trend Resources waa up .05 at $1.65 on 75,100 shares‘ and Cannon Resources was up .08 at .65 on 68,000, Burlington Gold was down .02 at .73 and Premier Resources was Gown 08 gt 18, | NOW OPEN ALEX’S BODY SHOP in the old McEwan’s Shop iB & G Imperial Bank of Cammerce (Acress from the Skeena Hotel) 2701 South Kalum St. iBank of € 4513 Greig 635-2926 635-6180 3.900, Great’ Nallonal Land A anneal . was up .10 at $1.40 on 6,500 _ ahares and Adera Financial . eee ne Se Corp. was unchanged at .35 NOW OPEN C & H Industrial Cleaning Ltd. "WE TRAVEL — YOUR HOURS" Steam Cleaning and Pressure Washing Phone 638-1634 or 635-3545 a ap Pe oo 2 es =—nsBEo wo 2G? = i on 6,000, Renn Industries Call us at 635-6357 - 9to5 was up .05 at $1.35 and Grouse Mountain was down 01 at .75, On the resource and