European Stars and Stripes (Newspaper) - February 03, 1991, Darmstadt, Hesse                                Sunday february 3, 1991 the stars and stripes a a Page 9 recession deepens fed cuts rate by the Washington Post Washington a the american Economy Slid deeper into recession last month As Many companies slashed their payrolls and the civilian unemployment rate Rose to 6.2 percent the labor department reported Friday. The Federal Reserve responded immediately and aggressively by cutting two key interest rates a move that prompted Sev eral major Banks to Cut their prime let ing rates from 9.5 percent to 9 percent. Analysts used words like a devastatingly weak to describe the economic picture painted by the employment report. Details of the report including a Sharp 1.9 percent decline in the total number of hours americans worked last month indicated the Economy was still deteriorating at a rapid rate,4he analysts said. Athe report showed that Blue Collar workers were particularly hard hit. The Federal reserves actions in. Tended to give the Economy a boost by cutting the Cost of borrowing included acut in its discount rate from 6.5 percent to 6 percent. A action was taken in Light of further declines in economic activity continued sluggish growth in Money and credit and . News evidence that inflationary pressures Are abating the feds announcement said. A later in the Quot Day the cent Lank pumped Money into the banking system to Tell investors that it had also lowered its target for the Federal funds rate the rate Banks pay when the Gorrow. Money overnight from each Otto or from 6.75 percent a tofa.25 percent. That meant that Banks id obtain Money to lend More cheaply. A the fed made a decision that they had to kick Start the Economy a declared Alam Leslie of discount corp. Of new York a major government securities Deal or. A they wanted to Wake people up with this move.�?�. A or As a result of the feds moves several major Banks including Citibank and Bank of America the nations two largest reduced their prime lending rates to 9 percent. With most business Loans and a growing share of consumer Loans such As Home equity lines of credit tied to the prime the half Point reduction Means the Impact of the feds action will be Felt quickly by Many borrowers. At 6.25 percent the Federal funds rate is Low enough that Forne Banks could be encouraged to Cut their prime lending rates to 8.5 percent in coming weeks even without further fed action said analysts. As both Short and Long term interest rates a bled Friday yields dn30-year . Treasury Bonds dropped from 8.19 percent to 8.09 percent. Most analysts expect Long term rates to fall further Given the weakness in the Economy. As they do rates on Home mortgages should come Down As Well which could help the devastated housing Industry probably the Economy a hardest hit sector. It was less Clear however that lower interest rates would do much immediately to get Banks to step up their lending . Unemployment percent of work Force seasonally adjusted businesses particularly since Many larger Banks have been Hurt by heavy loan losses and Are reluctant to make new Loans. Federal Reserve chairman Alan Greenspan believes this unwillingness to lend the so called credit crunch along with a major decline in consumer and business Confidence As a result of the persian Gulf crisis Are the principal factors behind the current recession. Businesses have trimmed production schedules and payrolls As Consumers Uncertain about the wars course Cut Back their purchases. The extremely bad news on payrolls and hours worked surprised most analysts. F m a m j j a s o n d j 1990. Jan. �?T90 dec. �?T90 Jan. 91sa%l i 6.1% i i 6.2% i Concord auditorium named after Mcauliffe from wire reports. Concord . A the auditorium in which Christa Mcauliffe said a jubilant Farewell As she headed off to astronaut training a and where her pupils watched the space shuttle explode five years ago a was named in her Honor Friday. Mcauliffee a widower Steven helped unveil the a Mcauliffe auditorium sign at Concord High school in a rare Public App a a us. Carance. He said his wife would have been prow the social studies teacher died with her Crew a mates in the challenger explosion Jan. 28,1986.shopliftirigjawmaker quits Salt Lake City a a legislator convicted of shoplifting resigned her seat Friday a week after narrowly surviving an expulsion vote by colleagues. She apologized for the scandal but Clairried a renewed Campaign to oust her was not a a fair a a a a a a rep. Dionne Halverson 43, pleaded no contest dec. 24 to shop mtg after she was arrested outside a mall carrying $196 in clothing she Hadnot paid for. She was fined $350, placed on probation and ordered to undergo therapy. Halverson said the attempts to oust her were not fair. A if someone does no to like you there a no reason to prevent them from garnering 50 signatures and you re out of Here a she told the 75-member  Poison Gas leaked new York a a leaking canister among world War i Memorabilia in a sealed and forgotten closet spewed Poison Gas out into an apartment building sickening residents firefighters said a a a a a Quot Quot a the articles belonged to a previous Tenan the new tenant was unaware of the closet inside the Wall a said a fire department spokesman. Firefighters broke through plaster in the lower East Side building to find the Gas phosgene oozing from a Gray canister. Seven civilians and 17 firefighters were treated for nausea Throat Irurita Jiuu and lightness in like Chest. Sailor jailed for child assault Jacksonville Florida a a Navy Petty officer was sentenced to 25 years in prison after pleading guilty to sexually assaulting his 8-year-old daughter As punishment for bad report cards. The father a 34-year-old Petty officer 1st class at Mayport naval station was sentenced thursday by circuit judge Peter  after pleading guilty to two sexual Battery charges. Prosecutors said the Man used the girls school performance As a pretext for repeated attacks. La. Facing water rationing los Angeles apr mandatory water rationing is needed to Cope with the five year drought that has left the City a water Supply at its lowest Point in history mayor Tom Bradley said Friday. Residents in the nations second largest City would be forced to Cut water use by 15 percent below 1986 Levels. The reduction Effort is part of the emergency water conservation plan endorsed by Bradley. The first phase went into effect last year. It prohibited washing sidewalks and driveways using a recycled water in fountains and serving drinking water in restaurants unless requested by the customer. The plans second and third phases Call for a 10 percent Cut in water use by March 1 and an additional 5 percent by May 1. On thursday,.a department of Ater and Power sur vey showed the Snow pack in the City Castern Sierra watershed was Only 13 percent of Normal for the year. Bradley called the Snow pack level a astonishing and frightening.�?�. A a this Means we have to go beyond the 10 percent reduction we asked people to do on a voluntary basis a he said. A half the people did no to even begin to seriously engage in conservation so we have a  Bradley called for mandatory rationing in May but the Council approved a voluntary 10 percent reduction plan instead. Only half of the City a residents met the 10 percent goal since september. V in Sacramento on Friday gov. Pete Wilson stopped Short of declaring a drought emergency but ordered the creation of an emergency task Force of top water officials to Deal with the states critical Scarcity of water. Navy to close 5 Roth programs Washington a the Navy said Friday it plans to close Reserve officer training corps programs at five universities and Combine 16 others into eight  the five programs to be closed in 1996 Are at Texas tech University the University of Minnesota the University of Missouri the University of new Mexico and the University of Utah. No now Roth students will be enrolled in programs at those schools after sept. 30, 1991.v a the Navy said that in the budget year that begins next oct. 1 it will establish eight a geographic consortia for Roth students who currently Are enrolled in Roth programs at 16 Sites. For example Roth students at Urcla and the University of Southern California will be put into a combined program serving the los Angeles area. The seven other a geographic consortia a and the universities they will serve Are a a a a a a Boston Boston University and the Massachusetts Institute of technology. A Chicago Northwestern University and Illinois Institute of technology. A research Triangle . Duke University the University of North Carolina and Nort Carolina state University. A a a a a Atlanta Georgia tech and Morehouse College. A Philadelphia Villanova and the University of Pennsylvania. A Houston Rice University and Prairie View a amp a. The eighth location is to be determined later. It will serve students from Memphis state University and the University of Mississippi. The Navy said the Roth reductions reflect a budget squeeze plans for a smaller Navy and Marine corps and a need to reduce the number of new officers commissioned each year. It said the reductions will save the Navy $18.5 million a year. Heroin blamed for at least 6 deaths new York apr tainted or highly potent heroin killed at least six people and sickened at least 46 in three Isaic it authorities said saturday. Sgt. De Burns a new York police spokesman said saturday morning that since Friday afternoon two deaths and 25 overdoses had been linked to heroin sold in one South Bronx neighbourhood. A Ain Newark n.j., one person has died from a heroin overdose and 10 people Are being treated in the emergency room of University Hospital in Newark said a Hospital spokeswoman who would not give her name. Six were admitted Friday night All from the same residence and four More saturday morning also from a single residence she said. V a police detective in Paterson n.j., said two people a died of suspected heroin overdoses Friday at St. Josephus Hospital. The detective who spoke on condition , said heroin a Ruicis  n typically make their heroin buys in new York City a. Bronx a Borough about 15 minutes away. In Hartford conn., one person was found dead of a suspected heroin overdose said sgt. Frank Rudewicz. At least 16 people were being treated at two hospitals including one in critical condition. It was not immediately Clear whether the. Heroin involved  the same Batch. Authorities said tests would be run. A a  a so me kind of Poison or its heroin of such strength that its too much for the drug addicts bodies to Tak amp a Burns said