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UNLCLASS1
Higher interest rates
help steady economy
WASHINGTON (AP>— Retail
sales surged last month across a broad
front after a quiet July, while a key
government report said the economy
is growing at a healthy pace with only
moderate inflationary pressures.
Americans were buying more cars,
home furnishings and back-to-school
supplies in August, the Commerce
Department said Wednesday, as sales
rose 0.8 percent after remaining un
changed the previous month.
Analysts said the buying binge
was spurred by job growth and there
is still steam left in a consumer-driven
expansion.
“The report is really quite positive
for the economy,” said economist
Lynn Reaser of First Interstate
Bancorp in Los Angeles. “The con
sumer has definitely not stalled out.”
“The economy has nine lives, and
-i maybe there are a couple of more to
go,” said Sung Won Sohn of Norwest
Corp. in Minneapolis.
The outlook was bolstered by a
Federal Reserve survey of business
conditions around the country.
“Economic activity continued to
expand through the summer,” the
report said. “Regions that have been
lagging are generally said to be doing
better while most of the stronger ar
eas saw growth plateau.”
The survey by the Fed’s 12 re
gional banks found that higher inter
est rates are having an impact, par
ticularly in slowing home building.
But the so-called beige book report
said consumer spending, while
slower, still remains strong, and re
tailers look forward to a good year
end holiday buying season beginning
around Thanksgiving.
The Fed, which has boosted short
term interest rates five times since
February to check inflation, sounded
fairly optimistic about price stability.
“There are more reports of tight
ening labor markets than before,
though wage pressures are still de
scribed as modest,” the beige book
said.
“This August
performance is good
news for the economy in
the third quarter The
fundamentals of this
expansion remain
sound. ”
■
RON BROWN
Commerce Secretary
Analysts said they still expect the
Fed to raise interest rates, but not
until its next post-election meeting in
November.
While the growth in retail sales
was expected, analysts said the
breadth of the surge is noteworthy.
Ironically, some economists said,
rising interest rates that are hurting
the housing market may be helping
sales of home furnishings and build
ing supplies.
“Higher mortgage rates are prob
ably stimulating home remodeling as
an alternative to buying a home,” said
Bruce Steinberg of Merrill Lynch &
Co.
The Commerce Department said
August sales totaled a seasonally ad
justed $186.6 billion, up from a re
vised $185.1 billion in July. The July
figure originally was estimated to be
$184.8 billion.
“This August performance is good
news for the economy in the third
quarter,” said Commerce Secretary
Ron Brown. “The fundamentals of
this expansion remain sound.”
Retail sales posted a 0.9 percent
increase in June after holding steady
in May and falling 1 percent in April.
Analysts said the uneven pattern sug
gests consumer spending is leveling
off but still growing moderately.
U.S. forces ready
to invade Haiti
WASHINGTON (AP)—No
concrete deadline has been set
by the United States for the re
moval of Haiti’s military lead
ership, but one could be estab
lished in the coming days, De
fense Secretary William Perry
said today.
The Pentagon chief also
warned that U.S. forces will be
in place to conduct an invasion
of Haiti “very soon,” should such
an action be ordered by Presi
dent Clinton.
Sen. Bob Dole, R-Kan. ap
pearing on CBS, agreed that
“we’re going to support the
troops if there is an invasion.
But we certainly don’t support
the policy.”
mmmmmam. "
Haitian
military
strength taabotfj
7500. organized into
ram mte&ry depart
ments. Three of Ihe
departments art in
..... - * Port-au-Prince and
ARMY consist of the
Presidential Guard, one infantry battalion,
one airport security company, two artilery
battalions and six artillery elements.
Personnel strength
as of 1993 was
about 150. Aircraft
ndude seven Sum
mrt/Cessna 02-337
AIRFORCE Sentry twin piston
engined counter
insurgency aircraft,
one DC4, six Sghftranaports and 10
training and liaison aircraft, inducing tow
turboprop-powered SF.260 TPs.
The Coest Guard as of
1993 had 166
personnel, one petrol
craft and tome boats,
af are based at Port
au-Prince.
Up to 20,000 poorly
armed irregulars
sMsported by approx
knately 3,000 sheritls
and police auxilary
NAVY
liU,
w
MILITIA
Source: The Statesman's Yearbook
AP
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Schlondorf
Continued from Page 1
the health, safety or welfare of persons on the
campus.”
“(Schlondorf) was enrolled the date of the
incident and he is not enrolled today,” James
Griesen, vice chancellor for student affairs,
said Wednesday.
Griesen said the university’s policy on pub
lic information prevented him from further
discussing Schlondorf.
Also Wednesday, the Lincoln Journal re
ported that just before the shooting, Schlondorf
lost $6,000 playing Keno at Kerrey’s restau
rant.
John Hewitt, manager of Lincoln Big Red
Keno, told the Daily Nebraskan his office kept
no figures on Schlondorf s losings.
He said Schlondorf often came into the
restaurant and also played Keno alone.
“They (employees at Kerrey’s) just said he
was a real quiet person,” Hewitt said. “They
were surprised when they saw his picture in the
paper and on TV.
“You just don’t know. Nobody here knew it
was going to happen.”
Enrollment
Continued from Page 1
“This is no big surprise,” he said. “This is all
demographically predictable.”
More surprising, he said, was that the de
cline in high school graduates and freshmen
enrollment was less than expected.
iGriesen said other factors contributed to the
decline in enrollment this year.
More students who were enrolled full-time
last year decided to enroll part-time this year.
That change accounts for about one-third of the
enrollment decline, he said.
Griesen said a new application deadline for
freshmen students, transfer students and stu
dents seeking readmission after having been
academically dismissed also may have played
a part in the drop.
Administrators moved the deadline up to
July IS for two reasons. First, the time spent
reviewing last-minute applications took time
away from more punctual applicants. The uni
versity had less time to help those who applied
late, he said.
Second, the majority of the students apply
ing late weren't as good in school than those
who applied on time, he said.
“We turned away several hundred students
who would have liked us to look at their mate
rials for applying. Of those, we would have
accepted about a hundred,” Griesen said.
The deadline helped ease administrative
work at the beginning of the school year, he
said.
“This is one of the smoothest starts to the
school year we’ve ever had,” Griesen said.
Griesen said other factors contributing to
the drop included greater financial difficulties
for many students, the federal government's
recent tendency to give out more loans than
grants and competition from Lincoln’s South
east Community College.
UNO’s drop also was caused by the decrease
in high school seniors, competition from com
munity colleges and financial difficulties.
Administrators at both schools said they did
not expect the decline to cause any major
problems.
It probably will work to some students ad
vantage, Hawkey said, because it will give
them a chance to enroll in courses that might
otherwise be filled.
Griesen said this year would probably be the
lowest year for enrollment. During the next few
years, enrollment would probably increase, he
said.
“In a period of five years, we’re going to go
up 4,000 students in the number of high school
seniors,” he said.
Nebraskan
Editor Jeff Zeleny, 472-1766. Night Nows Editor* Chris Hain
„ „ FAX NUMBER 472-1761
The DaJjy NobraritanJUSPS 144-080) is published by the UNL Publications Board, Nebraska Union 34.1400 R St..
Lincoln, NE 68588-0448, Monday through Friday during the academic year; weekly during summer sessions.
Readers are encouraged to submit story ideas and comments to the Daily Nebraskan by phoning 472-1763 between
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