to - MANCHESTER HERALD; Tuesday, Feb. 25, 1986 - i - B U SIN ESS MANCHESTER U.S./WORLD SPORTS / ■ |i- Bletchman rallies NASA official Bolton basketball ‘ Buainieas Young man needs Investment program STEAL’S troops defends agency is beaten again ■ notes very carefully. The teller’s statement a ^ u t the QUESTION: What advice would you give to a young notes being paid off in the event of that bank being ... page 5 ... page 11 In B rief man. age 27, who seems anxious to get a modest merged into another bank might not be true, unless ... page 3 ' investment program started. My son has about $16,000 there’s a definite provision for that in the^note Christensen appointed in a bank at 5.5 percent interest and a steady job offering. paying about $30,000 a year. Financiaily, he has only Investors* All this is not intended to scare y o u . Banks WINDSOR — Thompson’ Associates Inc. has himself to worry about, for the present. frequently raise money by selling notes and other dent appointed Norma Christensen of Manchester to Should he look for income, growth 6r both? About Guide securities and, almost always, meet the Interest the position of administrative services coordina- how much of the $16,000 should he invest? William A. Doyle payments and maturity obligations. tor, the company f " ' . ' It boils down to the fact that the notes are as safe as announce^. ANSWER; The first thing your son should do is pull the bank.' Because the notes do not have federal She ' will be 're­ his $16,000 out of that 5.5 percent account — obviously insurance, the bank naturally has to pay higher sponsible for coordi­ an old-fashioned savings account — and put all that interest on them than on insured CDs. nating the worklbad money in a money market deposit account, where it for clerical person­ will earn higher interest and be just as safe. market deposit account, for emergency purposes, and QUESTION; I go to Canada from time to time and nel in the adminis­ investing the rest. use Canadian money. When I exchange ilaurhfatrr HrralJi trative services de­ It’s a constant amazement to me that people keep ) Manchester — A City o( Village Charm for Canadian dollars, I never get the amount listed m partment as well as large sums in low-interest savings accounts. Banks QUESTION: My bank is offering "capital notes” In newspaper foreign exchange tables. On my last trip, i continuing as billing love people who do that. In effect, your son has been $2,500 minimum denominations. The notes pay 12.25 received $1.31 Canadian per U.S. doliar. On analyst for the com­ making a gift to His bank of the higher interest he percent interest and mature in seven, eight, nine and day, the exchange rate in the paper was $140._ pany. Thompson As­ could have been earning. ten years. I have $20,000 from a recently matured 25 Cents sociates provides If he doesn’t have an individual retiremen account, Canadian per U.S. dollar. Wednesday, Feb. 26, 1986 certificate of deposit and the 12.25 percent is higher Where can U.S. investors get the full exchange commercial print­ he should open one — immediately. He has until April than I can get on new CDs. ing and graphics 15 to make a $2000 IRA contribution for 1985. And he I asked the bank teller if these notes are federally rate? services to business should tuck another $2,000 into the IRA for 1986. insured. He said they aren’t but that they are backed ANSWER: Unless you deal in very large numbers, and industry. He’ll have to decide whether to 16ok for high income by the bank. When I asked what would happen if the you can’t. The foreign exchange rates in newspapers Christensen and bank is taken over by another bank, he said the notes or high growth. He can’t expect to get the best of both are for transactions of $1 million and up. Those are the Marcos exits her husband. Al­ wouid be paid off before the takeover. bert, have one from the same investment. For a young person, rny rates at which banks, brokerage houses and other recommendation would be to invest for growth in How safe are these capitai notes? daughter. Larissa. institutional investors trade currencies. common stocks or mutual funds holding common When you exchange smaller amounts of money, you ANSWER: Unlike various types of accounts and stocks. receive less foreign currency for U.S. dollars. J|iis CDs, those capital notes are not deposits and, 2 2 Pulitzer He should be aware that investments aiming for applies to all foreign currencies — not just Canadian Guam, heads growth carry risk. If he doesn’t want to take on risk, he therefore, are not covered by federal deposit Norma Christensen insurance. By buying those notes, you would become a dollars. nixes bid should put most of his money in bank certificates of creditor of the bank. If the bank fails, you might get ST. LOUIS — Three shareholders owning more deposit or U.S. Treasury securities. Doyle welcomes written questions, but he can How much to invest is another decision only he can nothing for your investment. provide answers only through the column. than 54 percent of the Pulitzer Publishing Co. on My advice is to read the offering circular for those Monday rejected an unsolicited $500 million make. I’d suggest keeping about $3,000 in a money for Hawaii takeover offer by A. Alfred Taubman, one of the shareholders said. Pulitzer Publishing is the parent company of By Richard Williams States, Marcos abandoned the United Press Internatlanal Malacanang Palace a few hours 6 the St. Louis Post-Dispatch and other media 5 after his inauguration, flying by properties. It is wholly owned by descendants of Skies may not Joseph Pulitzer, founder of the newspaper. AGANA, Guam — Ferdinand U.S. Air Force helicopter to Clark Joseph Pulitzer Jr. said in a statement that he Marcos, in improved health a day Air Base. and his brother, Michael E. Pulitzer, vice stay friendly after giving up two decades of He was carried on a stretcher chairman of the board, had been joined by David iron-fisted rule over the Philip­ onto a U.S. Air Force C-9 Nightin­ E. Moore, a grandson of the founder, in an pines, flew out of Guam today gale medical evacuation plane at agreement under which they rejected the along with 88 relatives and suppor­ dawn today and flown to Guam. takeover proposal. The three own more than 54 over Pacific ters, headed for Hawaii and Marcos’ plane bore Red Cross percent of the company. eventual refuge in the United marking to avoid being shot down Taubman. a Michigan real estate developer States. or forced to land. who also owns Taubman Media Inc. and Bv David R. Schwelsbero Marcos, who was carried on a Arriving in Guam during a Sotheby’s, a fine-arts auction house, made the United Press International stretcher for his flight from the torrential rainstorm, Marcos proposal on Thursday. Philippines Tuesday, "looked very walked down the airplane stair­ TOKYO — Just two weeks old. United Airlines’ well rested and in good spirits, as case without assistance. But Reyes aggressive advance into the Orient is expanding the * was Mrs. Marcos," said acting said he appeared "frail.” More thrifts get In trouble friendly skies with the threat of war over the Pacific Gov. Edward D. Reyes‘of Guam, A half-dozen anti-Marcos protes­ for the air travel dollar. who saw the ex-president’s party ters stood in the rain outside the air WASHINGTON — A federal fund that insures United, already the world’s largest private carrier, off at 11:54 p.m. (8:54 a.m. EST). base, which was sealed off to savings and loan deposits is threatened by went from a scrappy but minor competitor in the A total of 89 passengers were on reporters. increasing numbers of financially troubled thrift Asian market to a major power on Feb. 11 when it took board the U.S. Air Force C-141 Reyes said Marcos had a doctor institutions, the General Accounting Office says. over the Pacific routes of Pan American World Starlifter for an eight-hour flight to with him on the plane but that he The watchdog agency of Congress warned in a Airways. Hickam Air Force Base outside was not taken to the U.S. Naval report Monday that the Federal Savings and Loan Pan Am sold its routes and 18 jetliners to United for Honolulu, including Marcos’s wife, Regional Medical Center as origi­ Insurance Corp.’s fund could be wiped out if a badly needed $750 million, making United the No. 2 Imelda, his former military chief nally expected. Instead, Marcos federal regulators were forced to liquidate the 239 ■American carrier in the Pacific and setting up a of staff, Gen. Fabian Ver, and his and members of his Immediate financially weakest S&Ls. dogfight with the longtime U.S. leader. Northwest wife. family were taken to a guest house The number of technically insolvent S4Ls Airlines. Officials said they did now know on the base. F increased from 455 to 461 between March and United Chairman Richard J, Ferris, on a kickoff how long the Marcos party would Other members of the Mhrcos - t F June 1985, said the report, ’’Thrift Industry swing last week through Tokyo, made it plain that the remain at Hickam or where they group, in blue military cars with a Problems, Potential Demands on the FSLIC Chicago-based carrier will bring all its considerable ' planned to go from there but police motorcyle escort, went to Insurance Fund.” muscle to bear on the market — and said he hopes to deputy White House press secre­ the Hilton Hotel in Agana.