The Tennessean from Nashville, Tennessee • Page 60

4E THE TEKNESSEAN TruirwtoySgPTtMgEB IZ 8S Businesses Trim Capital Spending Plans, Survey Says WASHINGTON (AP) American businesses have scaled back further on their in 20 years, as industry pushed to expand and modernize in the midst of a strong recovery from the 1981-82 recession. Commerce Secretary Malcolm Baldrige said the projected increase in capital spending was "still a strong gain" and he noted that if the plans are realized, then 1984 and 1985 will have posted the biggest two-year increase in manufacturing investment since 1966. "Both the incentives to buy capital goods and the earnings to purchase them should support continued growth in investment at least through next year," he said in a statement Most analysts had been expecting a much better gain in 1985. However, the VS. economy has continued to disappoint this year as a tidal wave of Imports has robbed do-: mesne producers of sales.

The economy, as measured by the gross national product, grew at a tiny annual rate of 1.1 in the first six months of 1985. The Reagan administration is predicting growth will rebound sharply to an annual rate of 5 in the final six months of the year, basing this optimism in part on hoped-for gains in business investment But private analysts said the latest survey of business plans showed that investment gains will not fuel the rebound expected by the administration. "Capital spending is growing and helping to avoid a recession, but it is hot growing fast enough to generate a new surge in economic growth," said Lawrence Chimerine, chairman of Chase Econometrics, a private forecasting firm Chimerine predicted growth for the second half of the year would register around 2,5 to 3. David Wyss, an economist with Data Resources said the downward revision in spending plans reflected me battering that domestic manufacturers have taken at the hands of foreign competition. projected spending for expansion and mod- ernlzanon uus year, ine governmeni saia yesterday.

The Commerce Department said its latest survey, taken in July and August, found that businesses now project capital investment, after adjusting for inflation, wiu nse by 5.8 this year. In 1984, business spending on plant and equipment soared 15.3, the biggest jump Volcker Lauds Reagan For Protectionist Stand njl atiw.ijnni.Wiii ijiii i in mi v.niJU'i TENNESSEAN News Services WASHINGTON Protectionist trade laws are not the way to deal with a huge U.S. trade deficit, Feder al Reserve Chairman Paul A. Volcker said yesterday, applauding President Reagan for resisting such The best way to cope with the s40 I .9 problem, Volcker told the Senate If Banking Cornmittee, is to deal with the huge VS. budget deficit Ifvl998 While acknowledging that the Factory Direct trade deficit "is not healthy and not sustainable," Volcker cautioned that "simply jumping on it with a lot of protectionist measures is going to get you more problems than you bargain $32 Reg.

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Ret. $42 AaMMMflB mwom. mi Women's Shoes "You begin fooling around that way and you don't know what the re actions will be and they may not be happy," said Volcker. Tennessee Sen. Jim Sasser noted Paul A.

Volcker "Not healthy, not substantial changes in the way the insurance funds are operating. On other issues, Volcker i Said he has "had some conversations" about two pending ments that Reagan will make to the Federal Reserve Board, including some with potential candidates, but "I don't know if they were self- motivated candidacies, or other 4 Despite the urging of Sea William Proxmire, Volcker declined to say he would publicly oppose the appointment of a candidate he considered unqualified. Agreed with Riegle that there has been a disturbing rise in private as well as public debt in the last two or three years. Volcker attributed that largely to "the long-run effects of a tax system that encourages debt over equity" and said Reagan's tax proposals represent "a kind of baby step toward dealing with that" Said the savings and loan industry continues to have serious problems as a whole but that "at current interest rates, well-managed thrifts are doing quite well." "In a way here, virtue is being rewarded," he added, noting that the more conservatively run institutions which have continued to concentrate on home mortgage lending are doing best A brand name you'll know in new Fall colors! Reg. Ret.

$44 that for the first time since 1914, the United States has become a debtor nation, with foreign funds financing about half of the domestic budget deficit Japanese investments, Sasser add 100 OaksShpg. Ctr. 719 Thompson Lane Nashville, TN 615-385-1226 Also visit our stores in Memphis, Rossviile, GA hp ed, account for about half of the foreign capital invested in the United States. Great Selection of Handbags! Although called before the com mittee to give his views on the federal deposit insurance funds, the cen-, tral bank chairman as usual was grilled or'his opinions on a variety of topics. That was predictable given Volck- ert agreement with Sen.

Jake Gam, Grand One Nashville September You're invited! R-Utah, the panel chairman, that while some fine-tuning is in order there was no urgent need to make 1-65 Connector 'Scenic Parkway' Set For Saturn Plant From Page IE with county and local of ficials, so "they can determine where they -want future growth to occur" The road, which will be included in Tennessee's Scenic Parkway will function as an interstate but will be built to parkway stands ards four 12-foot traffic lanes, a 64-foot median and 12-foot shoulders, all of which would be contained in a 300-foot-wide corridoxrhe said. 36,000 cars and trucks are expected to use the connector on a daily basis. Farris said future land use around the corridor will be determined by local officials. In an apparent gesture aimed at soothing relations with local leaders, he emphasized that all DOT planning would be conducted "in harmony" You are invited to the Grand Opening Celebration of One Nashville Place, September 11th through the 13th. 10:00 a.m.

to 3:00 p.m. daily, in addition to viewing. Nashville's newest "Crown Jewel" you can tour a series of dynamic exhibits focusing on the resurgence of Nashville's central business district and the area's dramatic growth, Exhibitors include: one Nashville Place 1 The Edward J. DeBartolo Corporation The Nashville Convention Center The Stouffer Nashville Hotel Downtown Hotel croup Metropolitan Transit Authority Metropolitan Development and Housing Agency Center City Committee Broadway Revitalization Tennessee state Museum In Polk Center Market Street FestivalHistoric Nashville The Metro Nashville Arts Commission-Summer Lights Metropolitan Nashville Airport Authority join us In building for performance in downtown. For Leasing information Call: Corporate Property services, Inc.

Nashville, Tennessee 37239 (615)254-1717 Met Life Sets Salvaging Of Bankrupt Annunities NEW YORK (UPI) Twenty-two brokerage firms agreed yesterday to contribute J157 million to a fund backing annunities of Metropolitan Life Insurance Co. that will replace policies sold by the bankrupt Baldwin-United. 'wtrf4 felift X. t-; ft' fa 1 Xf i 1 1 1 If 'l i 1 I -j "I DlE expires, can achieve rates of 7.Ei,to 8.5 depending on where they purchased them. Policyholders who do not accept the Met Life annunities will continue under the plan worked out by the, rehabilitators in Arkansas and Indiana.

Roughly 167,000 investors purchased nearly $4 billion of the an- nunities that were heavily marketed by major brokerages. The annunities were frozen when Baldwin-United sought protection in bankruptcy court and disposition of them was under juridiction of court-appointed rehabilitators in Arkansas and Indiana. A class action suit was filed In federal court in New York by policy holders against the brokerages who had sold them the annunities. Kidder Peabods announcement that 22 brokers had joined was three more than announced by Met Life late Tuesday, but still does not in- elude PaineWebber, J.C Bradford and Shearson-American Express, They have until Sept 24 to join the agreement "We are still studying a Shearson spokeswoman said, and noted that the agreement involves brokerages who were named in the class action and that the three firms were not "Race Building On Performance in Downtown. John T.

Roche, executive vice president of Kidder, Peabody who is acting as chairman of the group, said the settlement signed by the 22 brokers, together with the plan announced Tuesday by Met Life, "reflects substantially all of the major points" of a plan to enable investors in single-premium annunities sold by Baldwin subsidiaries to recoup their money. The 22 securities firms will provide $157 million and 50 participating insurance companies will pitch in $50 million. Baldwin assets, estimated at $170 million, will be added to the total, The addition of the three brokerages apparently upped the ante from $140 million annnounced Tuesday. Investors who accept the plan will receive a Met Life annunity contract guaranteeing the return of 100 of their initial investment plus interest Met Life estimates that policy holders who keep the Met Life annunities until Nov. 1, 1987 when the Baldwin-United rehabilitation plan A joint venture of The Edward J.

DeBartolo Corporation Youngstown. Ohio and The Mathews company Nashville, Tennessee.