E r a F ra n c e s S e b o '
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As w e go to press:
Sugar Ray quits
Medicine
NBA Forecast
Atlantic Division
and the
Pag© 13
Elderly
PORTLAND OBSERVER
November 10, 1982
Volume XIII, Number 5
25C Per Copy
USPS 959-680-855
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Reagan Administration moves
closer to South African regime
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City Commlssioner Charles Jordan was congrat-
ulatad by frlanda and supportare at thè Opan
House hald at tha new Interstate Rrehouse Cultur
al Center. Congratulations were in order not only
for the succesaful opening of the cultural center
but for the passage of Measure 51, the police audit
committee.
(Photo: Richard Brown)
Federal report shows AS
by Lam ia Duke
G rassroot News, N . W. — T he
Federal Reserve Board recently con
ducted a study comparing minority
banks to each other and to non-mi
nority banks. Oregon’s only m inor
ity banking in s titu tio n , Am erican
State B ank, fared extrem ely well
and in some areas overshadowed
V F. BOOKER
v ,___ ir r-r - . - . - m .
other minority banks and even non
m in o rity banks. A m erican State
Bank president, Venerable F. Book
er, explains, " T h is report showed
our earnings were higher and more
than any other bank. One o f the rea
sons our earnings were higher is that
we refuse those jum bo deposits. By
ju m b o deposits I mean those o f
$100,000 or m ore. W e feel i f you
take in a large deposit you must
have some place to put it or loan it
out at a much higher interest rate
than what you are paying. Even if
you are trading interest rates you are
still losing money.”
The Federal Reserve study also
showed a lower operating cost at
American State Bank. " W e ’ve kept
our amount o f employees down. We
do not believe in extra employees.
We streamline tasks so each employ
ee does four or five different jobs."
The bulk of American State’s bal
ance sheet is in d ivid u al checkings
and savings. One would expect in
times o f rising unemployment that
people would deplete their accounts.
Booker says this has not been the
case. “ O u r base has not changed
very m uch. W e ’ ve been able to
The United States governm ent’s
improving relationship with South
A frica is reflected in: increased in
vestment in South A fric a by U .S .
corporations; approval o f a $ 1.1 bil
l o n loan to South A fric a by the
U.S.-controlled International M o n
etary Fund; U.S. involvement in the
illegal occupation o f N a m ib ia by
South A frica and the delay in that
country’s independence.
High ranking U .S. diplomats are
promoting investment in South A f
rica and guarantees by the Export-
Import Bank on financing U .S. ex
ports to South A frica are expected
io be icsuihcd so o n, it is becoming
easier for South A fric a to o btain
U .S . products: the Commerce D e
partm ent has issued at least 10 li
censes for export o f computers or
computer-related industry to South
Africa; three U.S. aircraft manufac
turers have been given permission to
compete for sale o f six turbojets.
South A fric a recently purchased
2,500 electrified "shock batons” for
Krerwd control
A p p ro x im a te ly 250 A m erican
companies with subsidiaries and a f
filia te s in South A fric a m ake up
about 20 percent o f the foreign in
vestment there. The leaders include
oils, chemicals, pharm aceuticals,
m otors, m in in g , paper and con
struction equipment.
Some o f these companies have re
cently expanded their investments,
encouraged by the Reagan adminis
tration’s policy o f "constructive en
gagem ent” — the theory that U .S .
involvement will bring gradual im
provement in racial policies.
Shulfon, In c ., a toiletries manu
facturer, recently invested an addi
tional S I.8 million; Maremont C o r
p o ratio n opened a S866 m illio n
shock-absorber factory; Ford and
John Deere have spent millions to
adapt their tractors to diesel engines
made in South A fric a ; D u P o n t
opened a new m arketin g o ffic e ;
Stone and Webster, a Boston engin
eering firm , is co-venturing a bid on
six new pow er stations; G eneral
Electric has expanded its holdings.
T h e value o f U .S . investments
was 13.3 percent in 1982 to $2.63
b illio n according to the D e p a rt
ment o f Commerce. About $51 bil
lion was new investment; the rest is
returned profits. The South African
economy grew 8 percent in 1980 and
4.5 percent in 1982. A lthough it is
heading into a recession, some sec
tors are still expanding.
Although some corporations are
still eery o f the political risk, much
o f the public a gitation against in
vestment in South A fric a has sub
sided and for many U .S . corpo ra
tions the economic gains outweign
the political risk.
The International Monetary Fund
(IM P ) decided to extend a $1.1 bil
lion balance-of-paym ents loan to
South A fr ic a , in spite o f a 121-3
vote in the U n ite d N ations re
questing the IM F to deny the loan
(the U .S ., B rita in and West G e r
many were the opposing votes). Ex
ports have fallen because o f the de
cline in the price o f gold. South A f
rica’s largest export item, resulting
in a current-account deficit. South
A fric a could have borrowed from
com m ercial bonds but at a higher
interest rate. One rationale for ap
proving the loan was prompt repay
ment o f a $470 million loan made in
1976.
The U nited States also supports
South Africa on the Namibian ques
tio n . In 1978 South A fric a signed
the United Nations resolution that
calls for a cease-fire, an independent
Namibia and an election. South A f
rica has been un w illin g to com ply
because an election would mean a
sweeping victory for S W A P O (The
South West African People’s Move
ment), which has fought for N am i
bian independence for 20 years.
The U n ite d States has jo in ed
(Please turn to page 5 column 4)
success
maintain those passbook accounts.
Even when interest rates on savings
were high, very few changed over.
We never pushed those new instru
ments like the N O W accounts. We
found out that we didn’t need them.
We do things the old fashioned way
and at the present time we are mak
ing money doing things the old
fashioned way. It ’s considered prof
itable if your returns on assets are
one percent. W e are just above
that."
No matter how solvent American
State Bank is, there is still criticism
w ith in the black com m u nity o f
B o o k e r’ s a ttitu d e and service
charges. "Some people look for rea
sons but we’ ve lost very few ac
counts. Those who move come here
looking for something more. They
found out that we operate like any
other bank. They become disen
chanted and go back to the bank
they came from . We run American
State Bank very conservatively. We
started charging for check cashing
many years ago. Now all the major
banks charge for check cashing. I f
you d o n ’ t, the person w ith that
check has you working for him for
nothing."
A n o th e r criticism is that the
amount o f commercial loans made
by Booker within the black commu
nity is very low. The survey by the
Federal Reserve Board shows Am er
ican State Bank lower on commer
cial loans. “ W e have loans in this
area. We just don’ t go around a d
vertising the loans we have made.
There is a C om m unity Investment
Act and when we were examined we
passed with flying colors. W e do a
lot o f things in the area. It ’s just not
well known or talked about. It goes
back to anything you do good no
one talks about it. They only hear
about the bad. W e loaned out to
build homes in the neighborhood,
helped churches, clubs, and f i
nanced cars. I do not believe you
should go around talking about this
fello w owes you money and so
forth. Some o f our larger loans we
have made out o f the area. But you
must remember in Portland there is
one black to 40 whites. Unless you
have a beauty shop or a barber
shop you should gear your business
to the whole c o m m u nity. I f you
don’t you are inviting financial de
struction."
Portland Observer sponsors legislative series
The P o rtla n d O bserver w ill re
sume its series o f legislative meet
ings on December 4th. Meetings will
be held every other Saturday to dis
cuss issues before the legislature and
to organize grass roots support (or
opposition).
Invited to the First meeting will be
Senator Bill McCoy; District 18 rep
resentative Ed Leek; House Speaker
nominee Gratton Kerans o f Eugene;
and Senate President nominee
Frank Roberts o f Portland.
ED LEEK
BILL McCOY
The topics o f the in itia l forum
will be legislation expected to be in
troduced in the 198.1 legislative ses-
sion, suggestions by those present,
and methods o f affecting the legisla
tive process.
The legislative breakfast meetings
were instituted during the 1981 ses
sion and featured not only local leg
islators but the legislative leader
ship, proponents and opponents of
specific legislation, and follow ing
the “ possum in c id e n t" became a
police-community forum.
The meeting w ill be held at the
Rustlers on G rand Avenue (across
fro m Sears) on Decem ber 4th at
10:00a.m.
The public is uiged to attend.
il
Randy Davis aa tha Scarecrow. Jeff Fritch as tha Lion, and Shawn
Pries as Dorothy pause during a busy rehearsal schedule to give us a
peak at thalr costumes. Tbe Wig opens December 2nd at Jefferson
for Its five night run.
(pps Photo: Larry Mills)