January 21, 1970

FDIC, after Fed Reserve raises ceilings on interest rates commercial banks may pay depositors, retains ceiling on regular passbook acct at 5% but raises ceiling to 5.25% on 90-day deposits, 5.75% on 1-yr deposits and 6% on deposits of 2-yrs or more; acts after meeting with Fed Reserve and HLBB; HLBB Chmn Martin reptdly opposed move; fears outflow of funds from savings and loan assns; Reserve, assuming that thrift insts would also raise ceilings, holds higher rates paid to savers by insts generally will increase pool of savings for investments in mortgages; Repr Patman and Sen Proxmire score rises as inflationary

The city had to pay 7.31 per cent interest—its highest ever—in selling $176,860,000 worth of bonds yesterday for public improvements. The city's total interest cost over the average 6½‐year life of the tax‐exempt bonds will be $82.8‐million. That means the city will be paying $1.47 for each $1 borrowed.

Selective Service instructs local bds not to induct men in Feb whose lottery number is above 60; most state dirs indicate they will have to call up to number 60 in order to meet quotas; for time being, state dirs can shift some of quota of local bds not having enough men to meet them to bds having surplus of men; Selective Service officials hope to devise new system under which states will be given an annual instead of monthly call to fill, enabling them to divide quota among local bds on basis of number of men in each bd

dinner; Sen McGovern s; Mayor Lindsay, Atty Gen Lefkowitz, Council Pres Garelik, Controller Beame, Admr Ginsberg also attend

formal ambassadorial talks resume, Warsaw, after 2-yr suspension, as Stoessel and Lei Yang conf at Chinese Embassy; Stoessel repts accord not to disclose contents of talks; says date for next conf will be agreed on later