Trailwise Goretex Mountain
Parkas
Men’s
[$143.00 Value
Women’s
$137.00 Value
NOW AT MATTOX
57 W Broadway
Eugene Downtown
Open Sun 12-5:00
686-2332
$99.50
$93.50
emerald
inter/national
From Associated Pm* report*
Economy remains
‘dead in the water’
WASHINGTON
Treasury Secretary Donald
Regan pronounced the econ
omy “dead in the water" Thurs
day as the government released
figures showing industrial
production down for the
seventh month in the past eight
Regan, who is Pres Reagan's
top economic spokesman, had
predicted as recently as Fe
bruary that the economy would
“come roaring back” by late
spring But he said Thursday
that recovery now can be ex
pected by summer — and then
only if the administration and
Congress can trim huge
projected federal deficits
Millertimes sg*»
High interest rates, caused at
least in part by lenders' and
investors' worries about
deficits, “have brought this
economy right to its knees,"
Regan said in an interview on
ABC-TV
He commented just before the
Federal Reserve Board released
figures showing output by the
nation's factories and mines
dropped 0 8 percent in March
That decline, which had been
expected, followed a February
gain that had broken a string of
six straight decreases
“We re in a very steep reces
sion at this point and the econ
omy is dead in the water,"
Regan said Private analysts
generally agree
Robert Gough, of Data Re
sources Inc., said the March
production figures "indicate
that the economy is still on the
way down "
Gough, like most economists,
says the scheduled income tax
rate cut in July, with increases in
Social Security payments,
should stimulate consumer
spending and thus retail sales
and ultimately production
Budget bargainers
settle on deadline
WASHINGTON
Negotiators tor the White
House and Congress are giving
themselves a deadline of early
next week to submit details of a
budget compromise to Pres
Reagan and House Speaker
Thomas O'Neill, congressional
sources say
These sources stressed Wed
nesday that the bargainers
themselves are far from certain
they can produce an agreement
by then that will be acceptable
to the two men
The blueprint being dis
cussed calls for about $125 bil
lion in higher taxes over three
years, perhaps including the
surtax and a type of excise tax
on energy products, excluding
home heating oil, or a
$5-per-barrel oil import fee
Other elements of a plan in
clude a reduction in Reagan s
defense buildup of about $28
billion over three years and a
reduction and delay in cost-of
living increases for Social
Security, government pensions
and other benefit programs
Domestic programs also would
be cut
In all, the proposals would
produce estimated budget
deticits of $93 billion in 1983
$77 billion in 1984 and $45 bil
lion in 1985 Without action to
raise taxes or cut spending, of
ficials estimate the 1983 deficit
at $180 billion, rising to $240
billion in 1985
Bactisn/ing
Release
Cathy L. Brenner
345-8293
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