The HeniW »nd The LantCTB

Moneyhiatters

Impact of Reagan Presidency

Twp. Chamber Seats Officers

Chamber bf Commerce, included:

VIUeAS — Abraham. 'Chico' ,Bonct was installed as president of the U)wer Towaship Chamber of Commerce during recent dinner ceremonies at the Pirates Den hero 4 .. . . . Mr Bone! the then vice president, had been named president last year following ' the death of president Warren Andrews. Other officers installed during the an-

Vice president Bob Obermair, executive secretary W. Boyd Tyler Jr., secretary Betty Evans, treasurer Peggy Stein, and board of director members Roebert Conroy Jr. and Fred Heifer

by Vince Fulglniti President Reagan started his term with the advantage of having the confidence of the business community^ a confidence Carter spent three years trying to win. The promise of rapid, non-inflationary economic growth is the central premise of the philosophy that will guide the Reagan administration. Mr. Reagan’s problem is to survive the inflationary short run, and to do that he will need to lower the inflationary expectations of both business and labor. If

Asks Check On Oil Price Decontrol

WASHINGTON. DC lit the wake of President Reagan's decision to decontrol oil prices. Con gressman Bill Hughes (I) NJi is asking a House antitrust subcommittee to closely'monitor oil industry pricing practice's Hughes fcaid that the move to eliminate price controls, which will add at least 10 to 12 cents per

gallon to the price of heating oil and gasoline almost immediately, would leave the oil industry total |y free to charge "whatever the market will bear.’’ HUGHES ADDED that he was disappointed that the President decided to eliminate price controls before the end of the winter heating season

Fisher in «*iTs Tax Guide

COURT HOUSE The IRS's Tax Guide for Com mercial'Fishermen is now available at the Coynty Ex teasion office here. Refund claim forms for New Jersey fuel tax paid on fuel used in commercial fishing and party boats are also available. Topics in the gt*ide include filing requirements, employment taxes.

business expenses, depreciation, investment credit and others. Changes in this year’s tax laws which affect capital construction funds, investment credit and the standard business mileage rate arc discussed. A whole chapter on goo<l record keeping and a sample rcord system may also save money next year

"Another few months of controls will not make any difference to the oil industry. already bloated with one quarter of record profits after another.'' Hughes said. "But they will make a big difference to low and middle income families and elderly people who are already hard pressed to heat their homes." HUGHES IS MAKING his request for oil price monitoring to Rep. Peter Rodino (D-NJ) who chairs the House Judiciary Committee and its Subcommittee on Monopolies and Commercial Law. “In the past." Hughes said, "the consumet; could always depend upon . federal price controls to provide at least some cushion against the skyrocketing world price of oil. Under President Reagan's decontrol order.

our domestic oil companies will now be free to march lockstep behind the pricing policies of the OPEC na-

tions.

•*| AM DEEPLY coll cerned about the phenomenon of parallel pricing," Hughes said, "in which supposedly autonomous oil companies seem to raise their prices

in total unison.

"lam further concerned that oil prices are continuing to increase despite the fact that the U S. has slashed its oil imports by almost 20 per cent and there is a glut of oil in the marketplace,” Hughes

continued.

Noting that the most recent round of domestic oil price increases began even before the OPEC price increase. Hughes said current pricing practices "defy the law of supply and demand." \

people believe that there will be less inflation in the future, they will behave in less inflationary ways in the present — avoiding anticipatory price increases and wage demands. The president also believes that there will be a substantial antiinfiationary payoff from his avowed aim of reducing the size and scope of federal regulatory efforts. The impact of the Reagan presidency is best split up into three time periods. The first, which followed the election, lasted a week or so and saw an improvement in stock

prices.

Historically.

Democratic victories have resulted in a decline in stock prices of 1.34 percent over the three months subsequent to election, but a year after the election, stock prices have been up 5.5 percent on average. A Republican victory, on the other hand., has resulted in an improvement in stock prices of 1.78 percent and 2.58 percent for the subsequent threeand six-month periods but a decrease in stock.prices of nearly 7 1 « percent over a

one-year period.

THE SECOND phase of the market Impact followed this one- to two-week' market reaction. The stock market then focused on our economic problems, in particular. the rate of growth in the money supply, interest rates, and the inflation'rate. This was the most vulnerable period for the market. / , It is clear that the Federal Reserve after the

election was making an effort to curb the growth in the money supply, driving up interest rates for a short period of time. During this time, its was quite evident that the stock and the economy were experiencing weakness. AS WE MOVE into 1961, the economy should be growing at a negative growth rate, and the rate of inflation along with interest rates should be declining. This should be a period during which stock prices will begin a sustained rally. This is also the beginning of the third phase of the Presidential

impact.

A survey of professional investors has indicated that the Reagan victory will result in approximately a 1 percentage point lower interest rate than under a continued Carter presidency (of approximately 1 percent lower

than current rates).

THE SAME survey has also indicated that Reagan's presidency will result in a Dow 100 points higher in six months than had Carter been re-elected

11007 versus 896).

Over time. Reagan intends to lower government spending and to lower interest rates. His victory reflected the increased awareness of the American people to the connection between government spen-

ding and inflation.

Next: Investment strategy with a Reagan ad-

ministration.

Vince Fulgmiti of Wildwood is an account executive with Bache.

Chinnici Bill Cuts Tax Bite

TRENTON - Assemblyman Joseph W. Chinnici. R. 1st Dist.. has introduced a measure in the New Jersey Legislature which would partially exempt earnings oh dividends and savings account interest from the New Jersey income tax. Chinnici said the bill is designed to help stimulate the local economy by adding to the supply of savings available {or capital expenditures. The legislator explained that his bill is specifically tailored to dovetail with a 4 recently enacted Federal measure which would allow a certain amount of dividend and savings account interest earning to be excluded from the federal income tax. CHINNICI SAID That under his bill the first $200 of dividend and interest earnings would be exempted from state income taxes for individuals, and the figures for couples filing joint returns would be

$400.

The legislator noted that the number of Americans having savings accounts has been declining steadily . over the past few years, and that his newly introduced tax incentive, coupled with the new federal measure, would help to reverse the trend by offering an incentive for saving: Saving. Chinnici said, is one of the keys to noninflationary growth Unfortunately. he noted, the United States has one of the current lowest rate of sav-

ings and investment in the Western world. This has resulted in less funds available for investment in upgrading our industries, and has brought about a slower growth in real wages than Japan, France, Great Britain and Italy. The legislator said in 1976 Americans saved approximately 7 per cent of their incomes, while hi other industrialized nations the figure stood at over 17 per

cent.

CHINNICI SAID the poor

rate of savings and invest- . ment by Americans can be attributed to a bias in tax codes which favors consumption tover saving. Chinnici said that if income is saved, the interest or dividends is taxed a second , time at a higher tax rate. Chinnici said along with the Federal tax incentive, his measure would encourage New Jersey residents to save and invest more by rewarding thrift rather than consumption.

Energy Aid Continuing

COURtf HOUSE - The Home Energy Assistance Program of the county office on Aging wili continue to take applications for assistance with energy bills until such time as the allocated monies have been spent.

Many older persons may be eligible to receive this help. Applications are still being taken at the Social Services Building in Rio Grande and at the four Senior Citizens Activity Centers.

Robinson Promoted

WILDWOOD - James L ■ Billmeyer. I president of ■ Marine flaItional Bank. I has announcI ed the promoItion of Atlee 1 Robinson to ■ the position I of assistant I vice presijdent Robin- ■ son is the ■ manager of ■the Marine Robinson Office here A member of the Marine team since

1976, Robinson voted in the North Wildwood and Lower Township offices also. He became manager of the* Wildwood office in 1978. Robinson is a native of the Wildwood area and now resides in Wildwood Crest with his wife Corinne. He graduated from Rutgers in 1972 with a degree in Economics, and also enjoys both tennis and swimming. He is a member of the board of directors of the Greater Wildwood Chamber of Commerce, and of the Wildwood Lions Club.