Wednesday, October 14, 1981
page 6
daily nebraskan
Certifi
By Tom Shelton
Nebraska savers have slowed their buying of the new All
Savers Certificates, a check with three Lincoln banks
reveals.
The'drop in sales can be attributed to a drop in the in
terest rates of U.S. Treasury certificates on which the
high interest rates of the All Savers Certificates are based,
local bankers said.
The certificates are a major part of the Reagan admin
istration's program of tx breaks and are designed to
produce an increase in the size of the nation's savings
pool, provide new funds for housing, and kick off a boom
in spending for plants and equipment to help reduce
America's high interest rates.
The saver certificates provide an opportunity for
savers and investors to purchase certificates for as low as
$500 at some banks and produce up to 51,000 in tax
free interest ($2,000 for couples filing joint returns).
Along with tax-free interest, they are far less expensive
than money-market certificates available from brokerage
firms which cost $5,000 to $10,000, but produce a some
what higher yield. The interest rates of the certificates are
set at 70 percent of the yield of UJS. Treasury certificates.
The certificates are hoped to increase UJ5. public saving
which, according to economist Stephen Thurman of
Wharton Econometrics, has been declining rapidly and
trails other industrialized nations.
The savers certificates became effective Oct. 1 and
last until Dec. 31, 1982. Some analysts wonder if they
can accomplish what the Reagan administration is hoping
for.
Right Direction
Jack Morris, chairman of the Board of the Citizens
State Bank said, "It's a step in the right direction. It's
not the answer to the problem, but it's a step."
Morris said the answer to the problem is long-term
certificates. He said the savers certificates should mature
in three or four years rather than one.
He said the savers certificates should be helpful to
savings and loan institutions. "They're getting a great
deal of action," he said.
Morris said the savers certificates could have a positive
effect on interest rates. Mortgage rates now are "not
practical," he said. "It's very difficult to pay 19 to 20
percent on mortgages for 19 or 20 years on a home," he
said.
' if
if
ii
i vf
f" V
x sr.1 I
ail x a " i'-p
w-1 If V '-ft tw-4
' f ' t$J
i v Yk
iiiii
mm i
GHNI
This year there's a second season of racing from October 7 through November 8,
and that means you have time for a little more horseplay.
With our special student passes, it's even easier to
spend a day at the races!
The Sunday Double: Double Draws
JEvery Sunday, the State Fairgrounds Track will have double draws
(two beers for the price of one) for college students. Just clip
these coupons so you can enjoy a few cold ones as you watch the races.
The Wednesday Feature: 500 oil Admission
You can get 50 off the price of a $2 admission ticket
on Wednesday. This is a special feature that is only available to
college students with I.D.'s and only on Wednesdays.
Take advantage
of the Sunday Double and the Wednesday Feature at the
State Fairgrounds Track.
Add a tittle horseplay to your campus life.
f Good
I for
500011
l ujeonasday
I Admission
I Good
lor
SOColl
I Wednesday
Expire 11481
Expires 11881
Good lor
Dou&!3 Draws I
Sunday Only
Expires 11881
I
V AdnilSSiOn ExPiresll481 Sunday Only
, Expires 11881
Sunday Only
Good lor
Dou&io Draws
i
Rnritl Inn
Dosi&la Draws
Expires 1 1881
Good for
Sunday Only J
STATE FAIRGROUnDS TflAGH
OCTOBER 7-NOVEMBER 8
Post times: 1 p.m.. Saturday and Sunday 3 p.m., Wednesday - Friday
Beginning October 28, i p.m. Daily racing Monday or tuesday
For reservations phone: (402 474-6773
Morris said mutual money funds offered by brokerages
and other outlets hurt banks because they cause money
to be sent elsewhere. They're hurting our business be
cause less money is being deposited" he said.
Morris said the number of savers certificates sold so
far did not surprise him. He said sales dropped off shortly
after they went on sale Oct. 1 because there was a drop
in the U.S. Treasury certificate's interest rate.
Percentage drop
Alice Dittman, president of Cornhusker Bank, said
sales of savers certificates went "as anticipated" and
said the drop-off was caused by a 12 percent drop
in treasury certificate rates.
"It seems to me the All Savers Certificates were a
hasty measure not likely to have much effect," Dittman
said.
Dittman said the savers certificates are a knife in the
back for plans to balance the federal budget. She said they
have caused disarray in the municipal bond market caus
ing less revenue to be available to the government.
The major weakness of savers certificates is their short
term effect, she said. "How can you have a one-year cer
tificate and put it towards a house?" she said.
Ross McCown, vice president of customer services
at First National Lincoln, said a "flurry of activity"
in buying savers certificates could occur if the U.S.
Treasury rate is high next month.
He said savers certificates sold well the first three
days they were available but said that buying slowed
when the rate changed on Oct. 5. "We've had steady activ
ity since then " he said.
McCown said savers certificates will give consumers an
opportunity to save money on taxes, but said they were
unlikely to help the farmers and the housing industry
as much as is hoped by the Reagan administration.
Blood. It has always been better
to give than to receive.
Red Cross: Ready for a new century.
THE
announces:
66
Music of the 50s & '60s
S1.50 Pitchers
Tonight: Wed., Oct. 14
99
GRAND OPENING
"SUSIE'S"
Handmade Silk Flowers
Bridal Accessories & Invitations
Oct. 17th & Oct. 18th
9-5 p.m. 12-5 p.m.
DOOR PRIZES
$25.00 to $50.00
Gift Certificate's
Bridal Bouquet-$45
Alter Arrangement $50.00 value
from: Max I. Walker. Zabloudil Photography,
Tober's Bridal Salon.
471 1 Huntington Ave.
"Plainsman Center"
466-0424