News Scrapbook 1981-1982

L~.J6 LL~ SUN

Page 3

prll 7, 1982

SAN DIEGO ivlAGAZINE

1982

APR

0 n the eve of St. Patrick' s Day, the University of San Diego Auxiliary held its election luncheon , "A Touch of Class," at the Sheraton Harbor Island . Reba Brophy and the USIU Singers provided entertai nment. Fashions shown were from Nell Har- rison's Fashion Quarter . Joan Bowes was chai rwoman; Barbara Denniston assisted her. ,.

GUILTY AS CHARGED

porting evidence was provided by Dean

Marge and Art Hughes enjoyed the re- of Students Tom Burke, Trustee Peter cent mock trial staged at USD's ninth Hughes, and Provost Sally Furay. The President's Club dinner, where the ten jury of President's Club members joined years of Hughes' presidency were tried in the revelry and sentenced Hughes to a by barrister and President's Club Council mi nimum of ten more years as USD's Chairman Josiah Neeper. Hughes was president ... and that's hard labor in this charged with perfection on the job. Sup- day and age. PEOPLE AND PLACES

LA JOLLA

Picture 1. Among the 200 guests at a black tie dinner musicale hosted. by Dr. Virginia Living ston· Wheeler and her hus- band, Dr . Owen Wheeler of the Livingston-Wheeler Medical Clinic were. (c ounterclockwise), Dr . Ronald Crown, Mrs. Lou Bozetti. Dr. Bozetti , and Dr Wheeler Picture 2. Dr. Robert Sage 01anist, ana Lawrence Brullo, violinist, gavf! ~t llo music-,,1 perfo rmances. Pict re 3. Mrs. Joan Bowes, left chairmanned a festive luncheon for the University of Sa n Diego Auxiliary at the Sheraton Harbor Island Hotel. Mrs. Evelyn Roth, Mrs. Bowes mother, assisted her in receiving guests and members of the Auxiliary. Fashions from Nell Harrison's Fashion Qua rters were modelled. Picture 4. Among the ta lented singers perform- ing at the USO luncheon was Reba Brophy , center. Virene Dewhurst. left. wa s recent publicity chairman for the 1982 La Jolla Debutante Ball, a nd wi ll hold the same post for the La Jolla Sjage Compa ny, of which Barbara Christensen. right, is the pre.?ider)t.

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SAN DIEGO UN ION APR7 1982

B Of A Head Sees Worst Economic Period In Post World War 11 History

until crippling intere t rates come down and that won't occur unless we deal more effectively with the defi- cit." ·aid Prussia. By 1985, the federal deficits could grow an additional $600 billion, he said. surpa ·ing $150 billion annually next year and possibly $200 billion a year by 1984. Federal borrowing used to be be- tween 5 percent and 10 percent of the total credit available in the t:nited States through most of the 1950s and 1960s. Prussia said. "But we forecast that has grown to 30 percent or 35 percent of available credit. And that is beyond the ability of th1 economy to support," he said. 'ThlS 1s the issue the markets want resolved and resolved quickly," said Pru ia. "They see that 1983 and be- yond should be years of recovery, but are not likely to be if our growing economy is starved for capital be· cause of the federal government's own insatiable appetite for 1t." He said President Reagan is on the right track. but the economic pro- gram is "poorly balanced" requiring an ·oppressively restrictive mone- tary policy .. He aid. "It would be better to trive for much more discipline with declining deficits so that money and credit policy could be eased." •without some corrective action, odds are against a recovery and eco- nomic stability m the 1980s," said Prussia. He said Bank of America is fore- casting a partial economic recovery m the econd half or this year, purred by the planned July tax cut, mcrea es in Social Security pay- ments and increased defense spend- ing. · But, Prussia warned. continued tight money policies of the Federal Reserve Board will make the recov• erv a weak and limited one. He predicted that the rate of infla- t10n could drop to zero, "or even neg- ative" and that level could be reflect- ed m the Consumer Price Index fig- ure due to be released by the Commerce Department later this week InOation will disappear and pric- e· of man1 good will actually de- rime," he id potn ing out that home pnc have been one of the first ex- amples of real price declmes.

Picture 5. Phyllis Parrish, Symphony Ball Chairman. was among th e La Joilans modelling at the Stage Company luncheon held at the La Jolla Country Club. Burl Stiff. society scribe for the San Diego Union, was on hand to a ssist the models a s they left the ramp . Fashions came fro_1:1 ~ar_:1 ;n'.ernational.

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Wednesday, April 7, 1982

THE TRIBU1''E

C-9

(2)

Financial

Leland C. Prussia

BofA chief: Deficit cut is recession cu.re By Janet Lowe Tribune Financial Writer

employment exceed 1t already record level of 9 percent and hit 10 percert of the nation's workforce be- fore the vear is out Not mu h good can happen on ei- th r th up ly or the demand sides

mobiles and computers, are suffering declines in their basic position in the world economy, he pointed out. This, and other factors, he said, could lead to a slow recovery from the recession. Financial markets are waiting for an indication that government deficits will be reduced before they respond positively, Prussia said. "They (financial markets) see that 1983 and beyond should be years of recovery, but are not likely to be if our growing economy is starved for capital because of the federal government's own insatiable appetite for it. "We believe the president is on the right track in call- ing for tax and spending cuts, as well as less government regulation and greater monetary discipline. However, the present program is poorly balanced with large deficits requiring an oppressively restrictive monetary discipline. "It would be better to strive for much more Iiscal discipline with declining deficits so that money and credit policy could be eased," he said. As for how Bank of America, which last year reported sharp! y lower earnings for the first time in 19 years, will cope with high interest rates and a flat economy, Prussia was not specific-. The bank, he said, would continue its conservative stance in regard to expansion, and would introduce new cost-savmgs technology such as automated teller ma• chines.

The U.S. economy may be falling into its deepest reces- sion since the end of World War II, and the Reagan ad- ministration must cut deficit spending to solve basic eco- nomic problems, according to Leland Prussia, chairman of the board of Bank of America. "I can't remember when we've had a more difficult economic situation," Prussia said. "This is our eighth post-war recession, and some people would say we've actually had one long recession." Prussia, who heads the nation's largest bank, spoke here yesterday at a fund-raising lunch for the University of San Diego. Prussia earned bis master's degree in eco- nomits from Stanford University and is a member, along with Ronald Reagan, of the San Francisco Bohemian Club. Though Prussia didn't specifically call for a reduction in the military budget, he outlined several congressional- ly proposed compromises, all which include a reduction in the level of proposed military spending, Though inOation has slowed its rate of climb - and Prussia predicts the next Consumer Price Index will be either zero or a negative number - he added, "Interest rates stubbornly refuse to admit we've made progress." A cut in government deficits is the key to reduced interest rates, which in turn would spur investments and create jobs, he said. "Not much good can happen on either the supply or

'I can't remPmher when we've had a more difficult economic situa- tion'

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LELAND PRUSSIA "Prograin poorly balanced"

demand sides until crippling interest rates come down, ' Prussia commented. "And that won't occur unless we deal more effectively with the deficit." With the prime rate (the loan rate leading ba charge their best customers) at 16.5 percent, the real interest rate, which most individuals and businesses pay for loans, "is at a historic all-time high in the U.S.," Prussia said "This would be OK if it were a cyclical thing," he stated. "But no we are seeing structural changes in the economy." The basic industries of the U.S., including steel, auto-