ustxtxb_obs_1980_08_08_50_00024-00000_000.pdf

Parisian Charm. Omelette & Champagne Breakfast. Beautiful Crepes. Afternoon Cocktails. Gallant Waiters. Delicious Quiche. Evening Romance. Continental Steaks. Mysterious Women. Famous Pastries. Cognac & Midnight Rendezvous. In short, it’s about everything a great European style restaurant is all about. h kE en oig . Cafe 310 East 6th St. Austin, Texas the legendary RAW DEAL Steaks, Chops, Chicken open lunch and evenings 605 Sabine, Austin No Reservations Postmaster: If undeliverable, send Form 3579 to The Texas Observer, 600 W. 7th, Austin, Texas 78701 The greater danger Being a businessman and a farmerrancher, there are periods in which my Observers stack up unread, and I have a backlog of reading to do. Thus I am tardy in writing in regard to John Stockwell’s article, “On Company Business,” [Obs., June 20]. I have no doubt of Mr. Stockwell’s sincerity, nor the veracity of his charges against the Central Intelligence Agency. I am quite willing to believe that, “any objective study of the CIA will appear as a litany of horrors,” and I congratulate John Stockwell on his obvious possession of a very rare kind of courage. I believe, however, that there exists an issue here that is perhaps more frightening than the willingness of red-blooded American boys to “lie, kill, cheat, steal, rape and pillage with the blessings of the highest.” I submit that the acceptance, or the apparent immutable disregard of such actions on the part of the American people is a greater danger. Here and now, on the very lip of a national election, where are the platform planks of either party that vehemently denounce those criminal acts of the CIA? Where is the great outcry of the public? The media has bombarded our schools society with the idea that virtually anything can be justified with, “It’s good business,” or, “It’s the American way,” generally accompanied by a shrug of the shoulders. We become believers that those phrases are great truths handed down to us by some mystic figure from afar. I submit that the Cocrots \(Chamber of ultimately responsible, if you except our individual gullibility and greed. For if it’s good for business, the Cocrots can justify political corruption, bigotry, lies, theft, rape of the land, pollution and pillage. Then, with the Cocrots blessing, all of those things can immediately become the “American Way” and “happiness,” and be widely accepted. Shades of 1984! I salute the Observer and Mr. Stockwell, but, cynic that I have be come, I fear that the public may decide that the CIA is “good for business,” especially where oil is involved. Neal Morgan Nederland More on banking Regarding “Banking on Oil,” your analysis of bank holding company growth [Obs., July 4] failed to reflect on one of its leading _causes. Inflation is forcing the sale of community-owned banks. The relationship between inflation and a bank’s stockholders’ equity requirements are simply forcing community-owned banks to sell out to the corporate holding companies. There are statutory relation’ships between a bank’s stockholders’ equity and total loans. As inflation increases the amount of money in circulation, every bank’s loans grow regardless of any growth in real value of those loans. This loan growth adversely affects these statutory ratios. The banking regulatory authorities then demand that the bank owners invest more money in the bank to increase its stockholders’ equity. These demands must be met or the bank can be closed. There is, of course, a limit to the amount of money community members can invest into their bank. The rate of return from these additional investments is not an encouragement. When the limit is reached, the bank must be sold. The economic reality of selling a community-owned bank restricts the potential buyers. If the total assets of the bank exceed twenty million dollars, the only potential buyers are corporate holding companies. Truly, corporate oil is funding the acquisitions of community-owned banks, but inflation is the mechanism that is forcing the sales. Corporate America, big government and big labor are the originators and benefactors of the inflation that is destroying our freedom and our democracy. Only by encouraging the remaining community-owned banks to sell additional stock to their communities can this trend be stopped. Lineaus Hooper Lorette Austin IF YOU ARE an occasional reader and would like to receive The Texas Observer regularlyor if you are a subscriber and would like to have a free sample copy or a one-year gift subscription sent to a friend here’s the order form: SEND THE OBSERVER TO name address city state zip this subscription is for myself gift subscription send card in my name 1:] sample copy only you may use my name $18 enclosed for a one-year subscription bill me for $18 MY NAME & ADDRESS \(if THE TEXAS OBSERVER 600 W. 7th, Austin, Texas 78701 Dialogue / from page 21 24 AUGUST 8, 1980