January 21, 1997

Banc One Corp says it has agreed to pay $7.3 billion in stock for First USA Inc; Banc One wants to expand its credit card business, but there is risk in buying credit card company just as late payments and loan losses in credit cards are shooting up; Banc One also reports that its earnings in final quarter of 1996 rose 9.7 percent, to $369.8 million, compared with year earlier; company announces 12 percent dividend increase to 38 cents a share from 34 cents and a buyback of as many as 12 million shares for use in earlier acquisition (M)

Federal Reserve policy makers say economy is finely balanced between healthy growth and inflation, and they do not expect to change interest rates when they meet to consider monetary policy for first time in 1997; four Federal Reserve governors and several regional Federal Reserve Bank presidents suggest they would move swiftly to raise rates if they see any acceleration in wages or prices later in year, despite current ideal combination of steady growth, low unemployment and low inflation; on Wall Street, emerging consensus is that Fed is growing increasingly wary of rising wages, and will raise rates, as early as March, in pre-emptive strike against inflation; comments from Federal Reserve officials Alice M Rivlin, Susan M Phillips, Edward W Kelley Jr and Laurence H Meyer (M)

William Jefferson Clinton begins second term as 42d President of the United States, appealing to Americans for racial unity and asking Republican Congress to put aside partisanship; 50-year-old Clinton takes oath of office from Chief Justice William Rehnquist, as Hillary Clinton holds family Bible open to Isaiah 58:12, exhorting 'the repairer of the breach, the restorer of paths to dwell in'; Clinton's Inaugural Address, 22 minutes long, says American people did not intend to advance politics of petty bickering and extreme partisanship when they elected President of one party and Congress of the other; calls for new government for new century, one 'humble' enough not to try to solve all problems, and warns that there is much work government cannot do for individuals; also refers to divide of race, on day that coincides with Martin Luther King Jr holiday; Vice Pres Gore is also sworn in; day continues with lunch at Capitol and toasts from Newt Gingrich and other Republican leaders, motorcade, parade and inaugural balls; photos (M)

Clyde Haberman NYC column discusses past links between New York City and Presidential inaugurations; Steve Laise, chief historian at Federal Hall National Memorial in lower Manhattan, speculates on how New York City would handle Presidential inauguration (M)

Article describes scene on New York City subway system at night; photo (M)