After Hours

 

 

' \ U2 brings its brand of message-rock to
m J Rupp Arenea tonight. ’SEE PAGE 3.

 

Sports

 

The Cats face the Bulldogs in
Georgia tomorrow. SEE PAGE 2.

 

 

 

50°-60°

Today:Sunny
Tomorrow: Chance of showers

 

 

Kentucky Kernel

Vol. XCl. NO. 50

:23qu 1 894

University of Kentucky. Lexington. Kentucky

 

 

Mike Combs. an undecided freshman. goes for
a layup against several of his friends at the bas-

Reach for the sun

afternoon.

ketball courts outside Blazer Hall late yesterday

ALAN "ANSI/Kernel Staff

 

 

Time moves back one hour Sunday

By RANDOLPH E. SCHMID
Associated Press

WASHINGTON -— Americans will
get an extra hour this weekend for
sleeping. carousing. toiling or just
idling. as the clocks shift back to
standard time.

The official moment comes at 2
am. Sunday. when clocks should be
turned back an hour.

Daylight time lasted a few weeks
longer than usual this year. having
begun on the first Sunday in April
instead of waiting until the end of
that month.

It is concluding at the normal
time. though. the last Sunday in OC-
tober.

Nonetheless. the federal official in
charge of time zones and changes.
Joanne Petrie. reports that she is re-
ceiving considerable mail and calls
asking about the change.

Because the starting date for day—
light time was changed last spring.
people are unsure about the ending
date. she said. and they contact her
for clarification.

The Transportation Department

regulates time zones and the
switches between daylight and stan-
dard time. because that system was
developed in the late 19th century to
help simplify confusing railroad
scheduling.

Before then. each community in
the nation set its own time.

Daylight time will return April 3.
1988. renewing the tradition that
began in Germany during World
War I. in an effort to save energy by
reducing the need for light in the
evening.

Reagan says economy still sound;
promises to work to curb deficit

By TERENCE HUNT
Associated Press

WASHINGTON — President Rea-
gan said last night there may be
other volatile days ahead for the
battered stock market. but “there
are no indicators out there of reces-
sionorhardtimesatall.“

Stocks retreated anew in frantic
U.S. trading today after falling
sharply in Europe. reflecting per-
sistent anxiety about financial mar-
kets left wobbly from the historic
collapse earlier this week.

Reagan also said in the nationally
televised news conference that he
would meet personally with congres-

Correction

Due to incorrect information given
to the Kernel. a story about an AIDS
survey that appeared in yesterday‘s
edition contained an error.

Thirty percent of the people sur-
veyed think that AIDS can be con-
tracted from a toilet seat.

sional leaders to seek agreement on
a plan to reduce the federal deficit.
“I‘m putting everything on the table
with the exception of Social Securi-
ty." said the president. who has
vowed repeatedly in the past to veto
any tax increases.

“1 call on the leaders of Congress
todothesame."hesaid.

It was Reagan’s first formal White
House news conference in seven
montts. and he began with a quip.
“Seems like only yesterday." he
said to laughter from reporters.

Reagan began with a progress re-
port on first lady Nancy Reagan.
who underwent breast cancer sur-
gery last Saturday.

“It sure is good news to have
Nancy back home. and she‘s doing
just fine.“ he said.

The news conference came at a
particularly difficult time in Rea-
gan‘s administration.

In addition to his wife‘s cancer.
the president has had to grapple
with the economic difficulty and a
tense situation in the Persian Gulf in
recent days. and is anxiomly await-

ing word from Secretary of State
George Shultz on possible progress
toward an arms control treaty with
the Soviet Union.

He defended his policy in the Per-
sian Gulf. where U.S. Navy ships
this week destroyed Iranian offshore
oil platforms being used as launch-
ing areas for military action. and is-
sued a veiled warning to Iran‘s lead-
er. Ayatollah Ruhollah Khomeini.

"If he‘s going to go on with pro-
vocative acts against us then he's
running a great risk. Because we
are going to respond." Reagan said.
"We are not going to just sit there.“

But the president also said. “We
are not there to start a war. We are
there to protect neutral nations'
shipping in international water.“

Most of the questions dealt with
the economy. and Reagan was gen-
erally upbeat.

“While there were a couple of
days of gains after a couple of days
of losses. we shouldn‘t assume that
the stock market‘s excess volatility
isover."hesaid.

independent since 1 971

Friday. October 23, 1987

Market loses as uncertainty
continues in wake of collapse

Associated Press

NEW YORK —~ Stock prices post-
ed huge losses in very heavy trading
yesterday as nervous selling resur<
faced following the previous ses-
sions record gains.

The Dow Jones industrial average.
which plunged an unprecedented 508
points in Monday‘s historic collapse.
fell 86.21 to 1.941.64 by 2 pm. on
Wall Street. In the first hour of trad-
ing the closely watched index had
lost about 140 points.

In the overall tally of New York
Stock Exchange-listed issues. losers
outnumbered gainers by nearly 6 to
1. with 1.554 down. 258 up and 177
unchanged.

Volume on the Big Board came to
292.87 million shares with two hours
to go.

On Wednesday. the Dow Jones av-
erage posted its biggest point gain
ever. rising 186.84 to 2.027.85.

“We couldn‘t continue going up at
the pace we did." said Dennis Jar-
rett. a technical analyst for Kidder.
Peabody 8: (‘0. “Any time you have
major declines like we had through
Monday you‘ll see a rebound.

“Now what we‘re have to do is go
back. retest the lows and regroup. "

Traders said many of the same
concerns that contributed to Mon‘
day‘s collapse — including fears of
higher inflation and the budget defi-
cit ~ were still around today.

“Stock prices look attractive but
the overall nervousness hasn‘t
changed.” said John D. Connolly.
chairman of the investment commit-
tee at Dean Witter Reynolds Inc.

”There‘s this strange nauseating
feeling that confidence will not be
restored quickly because we’re not
getting the kind of leadership we
should out of Washington." added
Hugh Johnson. senior vice president
for First Albany Corp.

Traders said stock prices began
on a down note due to massive sell
orders coming in from foreign inves-
tors. many of whom feared the dol-
lar would be significantly impacted
if the US, government moves to sti-
mulate the economy in the wake of
the market collapse.

And investors here were discour-
aged by the failure of the markets to
perform well in Tokyo and Europe.
traders said.

They said investors were pleased
by the fact that several banks
dropped their prime lending rate
today. but that had no major impact
on stock prices.

The market was slightly helped by
the fact the New York Stock Ex-
change asked major member firms
to refrain from program trading for
their own accounts to curb volume.

Among the most actively traded

bluechip stocks. Philip Morris was
down 7 to 90; International Business
Machines. down It; to 11813; Ford
Motor. down 4 t to 712‘ l. and (icncn
al Electric. down 4 to «iii=

The NYSE‘s L'OIIIDUSIH' index of all
its listed common stocks fell “.22 to
138.80, At the American Stock Ex
change. the market \‘aluc indc\ \tm
Oil 14.62 at 267.33

The Dow Jones avcragc of :‘.o in
dustrial stocks. by preliminary cal
culations. declined 77.42 to iiifioii.
a 3.8 percent decline and tlic .~.i.\th
biggest oncday point loss

 

By BETH PENNER
Contributing Writer

The effects of the falling stock
market on the economy is a ques.
tion playing upon the minds of
many people. Comparing Mon-
day‘s SOB-point drop with the
crash of 1929 has been frequent.

“First, the economy of ’29 was
already in recession and second.
the federal reserve did not come
foward fast enough in ’29 to pro-
vide money."

The country is not in recession
today. he said. The economy is
strong and unemployment is low.
so the stock market crash may
simply stay in the financial part
of society and not affect the real
economy. real meaning the level
of unemployment. total produc-
tion and GNP. Laumus said.

Today the federal reserve is
keeping an eye on the market. It
came in quick to help the banks
out in case they were in need of
money. he said.

When the stock market fails. it
produces a rippling effect. he
said. Anytime one sector of the
economy cuts back. another sec-
tor gets hurt and everyone is af—

 

Economy good despite
drop, professor says

fected.

”As stock market prices fall
they lend to lower ithci purchas»
ing power of the economy.“ he
said. "In turn. the fall affects ev-
erybody whether or not they have
any stock holdings."

In terms of investment. banks
are still probably the safest alter-
native. “CD‘s (certificates of de-
posit) and the money market in-
struments are still the safest
investments." he said. Laumus
said it would be wise to wait for
the stock market to stabilize be
fore investing in it.

Foreign investors face the
same problem as domestic Invesi
tors. Laumus said. "If they pull
their money out they may not
have as good as opportunities
elsewhere as in the U.S. he
said. Foreign investors will go to
treasury bills or CD‘s as a sale
form of investment. Treasury
bills and money market instru-
ments lower interest rates. which
is a direct help to the “real" part
of the economy. he said.

Laumas said the economy re-
mains in good shape. “All indus-
tries are up. unemployment ls
down and production is rising . ”

 

 

Honduras vice president says
U.S. money needs smarter use

By LISA A. BROWN
Contributing Writer

The United States has made an
error in assisting the military of
Honduras. said Jaime Rosenthal.
the country‘s vice president. during
a press conference yesterday at the
Bluegrass Field Airport.

Rosenthal was in Lexington to
give a lecture yesterday on the UK
campus.

The United States appropriates ex-
penditures for the military branch of
government in Honduras but doesn‘t
contribute monies to the civilian
branch. he said. This aids in the im-
balance of power between the two
branches.

"The United States has committed
a mistake by giving assistance to
the military without directly going
to the civilian government.“ Rosen-
thal said. “The civilians have no
control of the spending of the funds
(expedited by the United States. i"

The U.S. government has been
critical of the manner in which Cen-
tral America uses the funds that is
provided for the military.

“Even though the idealist coun-
tries deny it. the fact tremains) that
most of the money that (the United
Statesl gives our countries is wasted
to technical studies and techinical
assistance that doesn‘t get any-
where.“ Rosenthal said.

The only way to emure that the
monies will be used legitimately is
to develop Central America‘s primi-
tive form of democracy. he said.

By developing a democracy. the
people of Central America will have
more of an opportunity to decide
haw to disperse funds.

During yesterday‘s lecture. titled
“Problems of Economic Devel-
opment.“ Rosenthal addressed what
he thought to be Central America‘s
most perplexing economic problems.

The existence of a militaristic gov-
ernment that doesn‘t allow a democ-
racy hinders true economic devel-
opment and brings about corruption.
Rosenthal said.

Another discrepancy in Central
America's economic system is the
inability to repay world debts.

“We don't have the money to
repay loans." Rosenthal said. “Our
currency isn‘t accepted as a trade
currency.“

Also. Central America doesn't
generate enough foreign exchange.
which inhibits their growth economi-
cally.

“We import more than we ex»
port." he said.

Unemployment also contributes to
Central America's low capita econ-

omy Rosenthal said the l'cniml
American countries didn't haw Illi‘
available resources to increase «up;
ta.

At the present time. a laruc par!
of Central America depends on ex
ternal means -loans and graiw H-
finance ca pita

“Internal capita is almost non
eXistent." Roscnthal said

To combat the cconomic dcprcs
sion. (‘cntral America VII” how to
increase exportation. he said

"We have to expand what we can

\‘cc II()\|)l R \\. i‘.!.'. ‘

Rent-A-Greek to offer
help around the house

By J.T. H()l'.\'(‘liEl.l.
Staff Writer

Lexington residents needing help
with odd jobs around the house can
turn to UK fraternities and sorori-
ties.

Next weekend the Greek Activities
Steering Committee kicks off its an-
nual Rent-A-Greek program. which
hires out greek members to do odd
jobs and minor repair work. such as
raking leaves and cleaning out ga-
rages.

David Chewning. president of
Sigma Nu and one of the program's
organizers. said most fraternities
and sororities will participate in the
event as part of a community serv-
ice project.

“Residents iwithini the Lexington
city limits can rent the services of
two people to do variom simple jobs
around the house.“ Chewning said.

The program usually gets a big re-
sponse from UK faculty and staff.
and the number of jobs scheduled
grows each year. “It‘s been success-
ful everytime we‘ve attempted to do
it." Chewnim said.

The hours for the cvcnt are 9 a m
to 1 pm. Though normally held once
in the spring semester during Greek
Week. two days have been scheduled
this year because bad weather hamr
pered the success of the event last
year. he said.

This year RentA-Grcck will be
held twice. with the second date
scheduled for April 9

The fee for each job scheduled is
$25. though donations above that
amount will be accepted. The money
raised goes toward the Greek Activ-
ities Steering Committee scholarship
fund. from which a $500 scholarship
is given to both a sorority and a fra»
ternity member each year. said Mi-
chael Palm. assistant dean of stu-
dents and fraternity adviser.

Approximately $2.000 was raised
in 1%5. Palm said. The most re-
quested jobs were window washing
and leaf raking.

The deadline for scheduling a job
is Oct. 29. People interested in doing
so should call 257-3151 between the
hours of 3 am. and 12 pm. or 1 pm
and4:30p.m.