The Daily Register Monmouth County's Great Home Newspaper VOL.104 NO. 92 * SHREWSBURY, N.J. MONDAY, OCTOBER 19, 1981 25 CENTS Reagan concedes nation in recession WASHINGTON (AP) - President Reagan claims and a weak housing market. year. said yesterday that the United States is In a "We have anticiapated for some time that Joblessness hasn't been that high since the recession. It was the first time anyone in hii this situation could anise as our mid-July fore- end of the 1974-75 recession, which has been administration was willing to make such an cast for a fourth-quarter unemployment rate of called the most severe economic downturn this assessment. 7.7 percent makes clear," he said. country has experienced since the Great De- "I think there's a slight and I hope a short But Weidenbaum said Reagan's economic pression of the 1930s. recession," Reagan said on the White House program plus built-in stabilizing elements in the The Commerce Department this week will lawn before departing by helicopter to meet federal budget will assure that a recession will release third-quarter figures fr the Gross Na- with French President Francois Mitterrand at be short-lived. tional Product that are also expected to show a Williamsburg Va. "I think everyone agrees on "...With both short- and long-term interest slight decline after adjusted for inflation. that." rates declining, forces already are in motion to In the second quarter, the nation's economic The president's comment caught his Council reverse, current downward tendencies, even output as measured by real GNP declined at an of Economic Advisers and other aides by sur- though several more months of poor economic annual rate of 1.6 percent. Two consecutive prise. As late as Saturday, White House spokes- statistics are a likely probability, ' he said. quarters of declining real GNP technically con- man David Gergen had refused to use the word The government reported Friday that in- stitutes a recession. recession to characterize the poorly performing dustrial production fell 0.8 percent in Septem- James Tobin, who won the Nobel Memorial economy. ber, the second monthly decline in a row, and Prize in Economic Science last week, said yes- Later yesterday, CEA Chairman Murray was now at the lowest level in more than a year. terday that Reagan's simultaneous tax and Weidenbaum, issued a statment saying "there Unemployment climbed from 7.3 to 7.5 budget cuts will cancel each other out to "keep are increasing signs that the economy has en- percent last month. Jerry Jordan, a CEA mem- the corse of the economy pretty flat " tered what can be called a recession." ber and the administration's chief economic The Yale University economics prfessor, in- The signs, Weidenbaum said, include a drop forecaster, said last week that unemployment terviewed on NBC-TV's "Meet the Press" pro- in industrial productivity, rising unemployment could reach higher than 8 percent by early next See Reagan, page 5 New premier in Poland WARSAW, Poland (AP) - Premier Wo- have been affected by strikes, mostly because of food shortages. Solidarity locals nationwide NMiMtotNfMi jciech Jaruzelski, taking over the ruling Com- munist Party after the ouster of Stanislaw have threatened more protests. PASSING THE SCEPTER — Ruth Evans of Ocean, left, Ms. Senior Citizen of 1981, Kania, warned the Solidarity labor movement "The increased anxieties and bottlenecks in congratulates Elsa Gaikls, who was chosen last night from a field of nine as Ms. that the regime's "possibilities for retreat have production can only lead to complete chaos," Senior Citizen of 1982. Gaikis also won the talent segment of the pageant for her oil been exhausted." the statement asserted. "An immediate im- paintings. Evans also holds the state senior crown. The 200-member Central Committee that provement is possible only if there is fruitful elected Jaruzelski yesterday demanded the in- cooperation between the authorities and all rep- dependent trade union stop strikes, obey the law resentative bodies, above all the trade union and help restore the nation's shattered econo- movement." Asbury Park woman my. It also demanded renegotiation of worker The committee asked the Sejm to suspend rights won during last summer's strikes and the right to strike and called for resumption of threatened to impose martial law. the six-day workweek, rights won by Solidarity Kania, who after 14 chaotic months failed to since it was formed in August 1980. wins senior pageant contain Solidarity's bold challenge to the re- Polish media said the committee accepted gime, resigned during a stormy committee ses- Kama's resignation by a vote of 104-79 and sion. After being tapped to succeed him, elected Jaruzelski 180-4. It was not clear if the LONG BRANCH - Elsa Gaikis of Asbury Vitelli of Oakhurst; second runner-up was other members abstained or were absent. Park won the talent segment, and went on to V ilma Morton, here, a local favorite who was Jaruzelski said the committee would meet later' this week with the Sejm, Poland's Parliament, The change came hours after government become Ms. Monmouth County Senior Citizen selected by her fellow contestants at Ma. and Solidarity negotiators agreed to a price before a crowd of 100 at Long Branch Middle Congeniality. to make more policy changes. The 58-year-old Januelski, who is also de- freeze the union bad demanded while plans are School last night. Other contestants were Eva Dehnz of made to rebuild the economy. The union had " The native Latvian, who came to the Spring Lake Heights, Helen Engel of fense minister and a Soviet-trained army gener- al, became the first Polish leader to run the threatened to strike otherwise. United States in 1950, will go on to represent Wanamassa, Helen Fiori of Neptune, Ann Until recently, Jaruzelski. who became pre- the county this March in the state Ms. Senior Grice and Genevieve Taylor, both of Asbury military, the government and the Communist Party at the same time. mier last February, supported Kania's policies Citizen pageant in Atlantic City. Park, and Mildred Laken of Wanamassa. of negotiating with Solidarity, the only union in "I'm so excited, I don't know what to The nine contestants were judged on tal- "We haven't sought confrontation," Jaruzelski said in his acceptance speech. "We the Soviet bloc free of government control. But say," said Gaikis in a trembling voice, when ent — which ranged from juggling to poetry three weeks ago, Jaruzelski hardened his posi- she was crowned by last year's county and reading — as well as the answer to the have always avoided it. Today we are not striv- ing for it either, but one thing is certain: our tion, warning the 9.5 million-member union to state queen, Ruth Evans. "Thank you all question. "If you could spend 24 hours with moderate its demands. very much." anyone in history, who would it be, and possibilities for retreat have been exhausted." "The disorganized Polish economy is today No reason was given for the resignation of Gaikis won the talent portion of the con- why?" Kania, a 54-year-old moderate who took over in test for her paintings which she displayed on Gaikis said that she would like to spend on the brink of collapse," the committee said in a nationwide broadcast. "The blows dealt to September 1980. He had pledged to honor prom- the school's large stage. her time with U.S. Gen George S. Patton, ises to Solidarity and appease the Soviet Union, because after World War II he told the Rus- industrial production directly affect all of us. "When I was a little kid, I couldn't read Let us end strikes." which complained Poland's liberalization went or write, so I painted," Gaikis said. sians to get back where they came from. too far and often hinted it would intervene. See Asbary, pageS Poland's supreme authorities, the commit- Selected as first runner-up was Rita tee said, "in the event of higher necessity Western diplomatic observers speculated should use their constitutional powers to protect Kania lost support because be made the party WOJCIECH JARUZELSKI the most vital interest of the state and nation," look weak by repeatedly relenting to Solidarity a reference to a possible martial law decree. demands. Lech Walesa, visiting France, said the govern- "Solidarity's leadership has unilaterally vio- "It seems ... that the committee was ment changes would not make him shorten his lated social agreements, usurping the role of a absolutely fed up that he wasn't doing what they trip. 300 brave weather In Washington. State Department spokes- superior force to dictate to the community, the wanted," said one Western diplomat who de- Sejm, the government, social organizations and clined to be identified. woman Susan Pittman said, "It's too soon for a institutions," the committee said. The Kremlin, which had sharply criticized full assessment." But she noted that like Kania, A government statement carried by the state Kania in the past, reported bis ouster without Jaruzelski has favored negotiated settlements in world hunger walk news agency PAP said nearly half the provinces comment. A spokesman for Solidarity leader with Solidarity. By ROB REINALDA dozen hunger organizations, said she hoped the efforts raised at least $25 per entry, or 17.500 LITTLE SILVER - Some 300 walkers, Jog- total. gers and bikers braved the blustery weather Dunikowski said there were no problems, yesterday as they participated in the Greater adding that she was pleased the rain held off Candidates stick to economics Red Bank Area segment of the national Chris- until after the walk was over.