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Ohio Orders Closings to Halt Run on Banks

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Ohio Orders Closings to Halt Run on Banks \ MANCHESTER FOCUS SPORTS Hoyas show mercy Breezy, cool tonight; Travelers won’t help I r Manchester to send sunny on Saturday | pay claim settlement I big bunch to parade in whipping Lehigh ... page 9| ... p a g e 2 | ... page 3| j page Friday, March 15, 1985 — Single copy: 25<t s Manchester, Conn. — A City of Village Charm Ohio orders closings to halt run on banks heavy (depositor) withdrawals " three-day run by depositors that tors but apparently with little By Dan Sussman Celeste, invoking emergency soundess oFour system. " was triggered by the collapse of success. worth millions of dollars. United Press International powers, ordered 71 savings and Celeste said he will work ESM Government Securities Inc. Only hours before Celeste an­ Wylie said about $2..5 million was loan institutions covered by the throughout the weekend to devise a withdrawn from one bank Wednes­ ol Ft Lauderdale, Fla. The bank nounced the bunking holiday. CINCINNATI - Cov. Richard K. Ohio Deposit Gaurantee Fund plan under which de[)osits in day. The name of the bank was not \ ODGF backed institutions will be borrowed $670 million from ESM Kenneth Cox. Ohio Department of Celeste today ordered 71 privately closed today, Saturday and Sunday Commerce director, rejected the disclosed. guaranteed savings and loan asso­ but indicated they could be closed insured by the federal govern­ and used securities us collateral Reports this week Si^id Home State * possibility of such an action. Lines hud formed at several ciations closed for at least three longer. ment. If a plan is not developed by might have lost as much us $100 Cox had told reporters a morato­ Home State branches when custo­ days to hall a run on the "Ohio's agencies and legislature then, they might remain closed mers were permitted access to longer, he said. million in the ESM collapse. rium was ruled out because it institutions by thousands ol deposi­ will need more time to work their safe deposit boxes, but the The Ohio Deposit Guarantee Cincinnati financier and Marvin "might cause more harm than tors alarmed by a bank closure. cooperatively with federal authori­ bank's offices remained closed for Fund is a state-regulated but Warner, the former i:.S. ambassa­ good. ■' Even before Celeste announced ties and our own banking commun­ other business. private fund which covers a dor to Switzerland and one of Celeste said officials of ODGF the "cooling-off period." people ity to complete a practical plan Paulette Lotspeicb, a Home percentage of the deposits at the 71 Celeste's biggest political backers, institutions, faced by the mounting were lining up outside savings and that, in these circuimstances gives State depositor, showed up outside institutions. is Home State's majority owner demands ol despositors, contacted loan associations tbday to take out the best protection we can devise to an office of the bank Thursday The run at Ohio savings and The bank is now under state him Thursday night, and many their money as thousands of others ODGF savers," he said. sugge.sted temporary closures. carrying a protest sign that read: "It (the moratorium) provides a loans institutions spread like wild­ conservatorship pending a sale. had done earlier this week In Rep. Chalmers Wylie, R-Ohio, "I made my money the old suburb'di] Delhi, about 200 people cooling-off period that conserves fire earlier this week after the Since Home State's problems senior GOP member on the House fashioned way — I earned it. I lost funds and is fair to all depositors closing of the Home State Savings developed, state and banking were waiting to get in at 7 a.m.. Banking Committee, said several my money in a new-fangled way — several hours before the facility until concern subsides and until we Bank in Cincinnati. officials hiive been trying to restore the confidence of deposi­ of the banks are "experiencing Home State froze it. " was to open. can convincingly demonstrate the Home State shut its doors after a Chamber O’Neill signs bill supports to end sales tax on $50 in clothing town mall HARTFORD (UPI) — Democratic Gov. William O'Neill today signed into law a Republican-sponsored By Alex GIrelll measure eliminating Connecticut's 7.5 percent sales Herald Reporter tax from clothing priced under $50. The measure, which goes into effect April 1, will The Board of Directors of the save the average taxpayer abut $75 dollars a year and Greater Manchester Chamber ob Commerce voted unanimously cost the state $17 million by the end df the current Thursday to support plans by John fiscal year and another $62 million in fiscal 1985-86. It was the first tax cut signed by a governor in 12 Figuerra to build a shopping mall in Buckland. years, the last coming when then Republican Gov, Today, Finguerra called the Thomas J. Meskill reduced the 7 percent sales tax to support an ^ important vote of 6.5 percent. confidence for the proposed devel­ The Democratic governor made it clear the credit opment. He said it "gives us added for the measure goes to the Republican-controlled incentive to proceed." Legislature but said he was glad to sign it because "it He also called it a signal to the benefits all the people ' business community at large that He inked the measure in his office as House Manchester is a good place to Republican members and Senate Republican leaders, locate. including President pro Tempore Philip Robertson of Finguerra said he and his Cheshire and Majority Leader Reginald Smith of New partners, 1-84 Associates, are now Hartford. trying to persuade major retailers Both the Senate and House overwhelmingly from outside the area that they approved the GOP proposal last month, rejecting should come to the Hartford area O'Neill's proposal to reduce the sales tax to 7 percent and that Manchester is the best on all purchases. choice within the Hartford market. O'Neill said the legislation was brought abopt by Michael Belcher, chairman of "truly bipartisan" cooperation and hoped it would the bSard of the chamber of continue. commeiW, ,said -^oard members After the signing, he said he will pursue other cuts expressed no reseYyations about but said he had not discussed them with the other the development whet) they dis­ party and declined to give any details on what they cussed it. .. \ would be. The executive board of the Reut«f/UPI photOy Republicans have said the $50 exemption is only the chamber voted in favor of support­ first of a $130 million tax cut plan to draw on the state's ing Finguerra's plan on Wednes­ HeBvy-golng $350 million budget surplus. day and recommended support by O'Neill said he is open to any worthwhile tax cut that the board as a whole. >. servicemen, invited to listen to a debate on dissent in the West German parliament, find might be proposed by either party but put "o ff lim its" Finguerra is competing for any attempts to touch the state's "rainy day" fund • tenants for the proposed mall with language and proceedings heavy-going. which was created to offset budget deficits. developers of the Winchester Mall, which is proposed for land in Buckland that spans the Manchester-South Windsor town line. Prices drop for food, gasoline and fuel oil Two major department stores— • G. Fox & Co. and Sage-Alien — the past 12 rnonths. decline. drop. light trucks got 1.5 percent : have already announced plans to By Denis G. Gulino Although fresh fruit prices Gasoline prices dropped 3.4 That means that the price costlier. open stores in Winchester. United Press International soared 9.1 percent, largely be­ percent and fuel oil cost 3.6 percent moderation will be rein forc^ as But industrial, farm and con­ Finguerra has sought support cause of shortages brought about less in February, despite it being the raw materials move through struction machinery, which ac­ from town officials and commun­ WASHINGTON - Wholesale by the earlier freeze in the Florida one of the peak months of the the pipeline to the consumer. counts for nearly 22 percent of the ity leaders, arguing that under his prices fell 0.1 percent in February, heating season. If food and energy were to be purchases tracked in the report, plans, the entire project would be an unexpected ' im provem ent citrus belt, the effect was largely The Producer Price Index disregarted, prices for everything went up only 0.5 percent. within Manchester and the town brought about by less expensive neutralized by price breaks for inched down to 295.5 in February, else went up only 0.2 percent The trend reflected in the • would benefit from the increaset^ food, gasoline and fuel oil, the beef, pork, poultry and fish, "People may have gotten a little equivalent to a cost for business of during February. wholesale price report does not taxable property. Labor Department said today'. $2,955 for goods that cost $1,000 in One disagreeable ehange in the Almost all of the Winchester In the past year the depart­ too excited about fruits and vegeta­ directly affect the consumer. The report was the first increase in six development would be located in ment's Producer Price Index, bles." one department analyst 1967. department's Consumer Price In­ months for natural gas. of 1.9 South Wind.sor. measuring price changes of nearly said, referring to widespread As good as the price picture dex show consumers have had to percent, ^ t natural gas has only Finguerra spoke to the chamber 3.400 goods sold in bulk, has gone predictions of a sizable jump in looked for finished goods at the end face price increases more than gotten 0.4 percent more expensive board at a meeting Feb.
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