European Stars And Stripes (Newspaper) - July 14, 1988, Darmstadt, Hesse                                Page 4 the stars and stripes thursday july 14,1988 fed restricts Money Supply to counter inflation threat Washington up the Federal Reserve Board concerned about the threat of inflation is tight ening credit conditions leading to an increase in inter est rates fed chairman Alan Greenspan said wednes Day. Greenspan said the fed has already in effect pushed up interest rates this year and even More restrictive policies probably would be necessary in the months ahead. In testimony before the Senate banking committee Greenspan noted that the Economy has rebounded in healthy fashion from the october 1987 Stock Market crash and is expected to grow with exports leading the Way As much As 3 percent this year. An overheated Economy often leads to rising prices Greenspan said especially when accompanied by fall ing unemployment. The National jobless rate fell to a 14-year Low of 5.3 percent last month. The drought that has damaged or wiped out Many Farmers crops in the farm Belt is another Factor that could Lead to higher prices he said. The Long run costs of a return to higher inflation and the risks of this occurring under current Circum stances Are sufficiently great that fed policy at this juncture might be Well advised to err More on the Side of restrictiveness rather than of  accordingly Greenspan said the fed which controls the flow of Money into the Economy has revised downward its estimate of How much currency it will pump into the banking system. It is Clear. The monetary ranges will have to be brought Down further in the future if Price stability is to be achieved and then maintained he said. For 1989, the fed has underscored its intention to encourage Progress toward Price stability Over time by lowering its tentative ranges for Money and  in addition Greenspan said 1989 estimates of Money growth have been reduced. When the fed tightens the Money Supply less cur Rency is made available to Banks and other lending institutions which leads to tighter credit conditions and higher interest rates. Consequently it costs More for Consumers and businesses to borrow Money. Greenspan emphasized that the fed ranges for Money Supply Are provisional and would be re viewed and altered to fit economic conditions. But Greenspan also made it Clear that Price stability is the prime goal of the fed. Price stability reduces uncertainty and risk in a critical area of economic decision making by House holds and businesses he said. Fed chairman Alan Greenspan new Hampshire s. Dakota rated Best for business by the associated press new Hampshire and South Dakota Load the lower 48 states when it comes to offering a favourable business Environ ment As wages continue to top the list of concerns among manufacturers Accord ing to a private study released wednes Day. Based on 21 factors that include wages Energy costs state business incentives and education. New Hampshire of fers Many of the economic and social qualities conducive to successful manufacturing said the accounting firm Grant Thornton. The factors were based on surveys of governors state economic development officials and statewide associations rep resenting More than 100,000 manufacturers the now York based firm stated. Wages were the single most important Factor to the associations when assessing business climates the Survey indicated. Available work Force unionization and workers compensation insurance Levels were the next most important factors respectively. For the first time in the nine consecutive years Grant Thornton has con ducted the study the firm differentiated states by their manufacturing intensity to make state to state comparisons More valid. States where total employment in manufacturing exceeded the National average of 1 7 percent or where manufacturing shipments exceeded the National average in Dollar terms were considered  ranked right behind new Hampshire on a list of 27 states deemed As manufacturing intensive were Missouri North Carolina Delaware and Florida. Heading the list of 21 states with a lighter concentration of manufacturing was South Dakota followed by North Dakota Nebraska Nevada and Kansas. According to the study South Dakota is the least unionized state in the nation Only 3. 1 percent of its workers Are Union members compared with a National average of almost 20 percent. The state ranked As the most favourable among the 48 states in terms of Overall labor costs. Ironically new Hampshire s Overall labor costs put it at no. 35 when ranked among the 48 states. However the Gran Ite state s fiscal policies ranked first Overall. North Carolina ranked first in terms of state regulated employment costs. Kansas ranked first in terms of Avail ability and productivity of resources while North Dakota ranked first in terms of Quality of life although the associations ranked factors such As Cost of Liv ing health care and transportation lagging industries s \ in the 1990s i j of estimated decline in Nero of ate of growth for selected industries 4 / of local  / / /  tobacco Iron and steel sundries / of vex Raf pad equipment \ a nonfarm housing -1.71 a Depe it Evan Dan -2.0 i Chicago Tribune graphic source . Bureau of j labor statistics / c e f a growth industries estimated annual rate of or or selected industries bbl my of the 1990s oath s. A Iii electronic and computing equipment 17.4% passenger transportation services semiconductors electronic conductors recreational services optical and ophthalmic l i child Day care service i medical instruments ar1 Ian -j5.9 t of 35.8 1" k k ?  _ products 3 5.1 Issup Effes Chicago Tribune graphic source . Bureau of labor statistics As their least concerns. Other groups have made similar assessments of business climates around the nation. The corporation for enter prise development a Washington based non profit economic development re search and consulting group has used a Broad Range of factors to make its assess ment. But Selwyn Price a Grant Thornton partner has said while his firm s Index also considers a Range of factors it weighs them in accordance with what manufacturers identified in a Survey As important. Alaska and Hawaii were not included in the Survey because it would be difficult to compare them with other states due to their substantially different economies Grant Thornton stated. Yuppie grocer11 to file for bankruptcy on stores Boston up Jim Bildner the Man who became known As the Yuppie grocer has placed his company owing about $45 million to More than 1,000 creditors under Federal bankruptcy Protection. K to have worked five years Day and night to end up at 10 causeway Street is my worst night Mare Bildner 32, owner of j. Bildner & sons said tuesday outside the causeway Street court House. But tin Here. If 1 just crack i la be abandoning the company which i m not going to  Bildner said he Hopes his creditors will agree to allow his seven remaining stores to continue operating rather than insist on liquidation. J. Bildner & sons became a 19-store Chain in five slates after launching its first store in bos ton s Back Bay Section in 1984. The store Fea tured Marble floor tiles Chrome fixtures and Pic Ture perfect produce ail of which Cost More than $1 million. Brooklyn Staten Island beaches closed As sewage gushes into Harbor new York not ail the municipal beaches on stain Island and in Brooklyn were closed tuesday when sewage gushed into new York Harbor after a Power failure adding new concerns for Beac goers and health officials already alarmed by recent deposits of medical waste on the local Shoreline. "1 do believe this period of the 1980s will be remembered As the time the planet struck Back said  c. Joseph the new York City health commissioner who ticked off a list of recent environmental disasters Here and elsewhere. The planet is telling us we can t treat it this Way  Joseph who is awaiting results of bacteria count tests on the Waters the sewage spilled into said this latest Beach pollution problem is the most significant Public health Hazard of recent Days far More danger Ous than the medical waste. The danger a spilled sewage comes from bacteria and other microorganisms in the dissolved focal mat Ter which if swallowed can cause hepatitis infections and intestinal disorders health department officials said. While City inspectors saw no visible waste in the water near the Staten Island and Brooklyn beaches they closed them As a precaution while bacteria counts were taken. The latest Beach closures a result of a Power failure at a sewage treatment Plant on Staten Island came As state health officials announced that at least one vial found last week on a Long Island Beach contained the blood of a person exposed to the acquired immune deficiency syndrome virus and to hepatitis. The state health commissioner or. David Axelrod said the Chance of transmission of either virus in the Beach environment is extraordinarily Low and that the test results did not alter his conviction that the Nassau and Suffolk county beaches were Safe and would remain open. Tests on blood found in a vial on a City Beach were negative for the aids virus. At Midland Beach on Staten Island syringes continued to Wash up with each High tide at least 60 tuesday to add to the 77 that had come ashore since saturday