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The Incredible Soaring Prime Rate, star of newscasts, executive boardrooms and beer bars, continues to do its number to the amazement and consternation of nearty everyone

As this is written, it has just tit97+Vo, a new all+ime record and the 13th increase since Mar. . . banking analysts say it could go as high as ltrhVo or so, barring political moves that might result from the clamor that would inevitably follow hitting dramatic new highs .

The prime rate, which is the bank's minimum lending rote to its best customers, was freed by the Nixon administration 6 mos. ago in a compromise that allowed it to fluctuate in return for a Z-tier system ofrates that kept small business loans lower, Iess affected by prime rate hikes the small business rate w as 6V5Vo at the time of the compromise. it is now around 7Vz% . .

As the return on TreasurY Bills soared in parallel with the prime rate rise, the s&ls suffered massive outpourings of their funds as investors sought higher rates of return, thus hamPering the supply of home mortgage money, the bulk of which comes from the thrift institutions . .

Nationally , housing starts in Julv continued their momentum from the biggest housing boom ever, moving up to an annual rate of 2,176,000 from June's 2,093; the West, however, had a 15% drop .. . bldg. permits have been declining so it's onlY a matter of time, experts say, until starts slide . . . Advance Mortgage Co. predicts a 20Vo drop in the annual rate of starts duiing the 2nd half of '73 .

Sales of new homes continues strong, to the amazement of observers, who confidentlY Predict it can't last long; the NAHB points out that a lVo rise in interest rates eliminates 150,000 starts per year. builders reportedly are already cutting back thet work forces in some areas.

The Packwood bill, (5-1033) to control exports of domestic timber was hastily withdrawn when it appeared it would get shot dawn in U.S. Senate floor debate; no word so far on a pos- sible 2nd try Sens. Humphrey, Hatfield and Sparkman are pu s h in g fore st mana g ement bills that could help the U.S. do a better job of managing its forest resources

A lb uquerque' s T abet Lumber Co. is in mid-construction of a 2-phase $3 million project that includes a home improvement center on West Mesa, new store will be called Corrales Home Center . . Solana Lumber Co., Solana Beach, Ca., is celebrating its 50th year in business . .

Oregon Pacific I ndustries has moved into new HQ, 17 mi. south of Portland, complex eventually will cost $2 million, includes a 100.000 sq. ft. warehouse; they plan to open a similar size one in Fairfield, Ca. (N.E. of San Francisco) next flo., the office staff has already moved there from Sacramento .

Farmer's Lumber Co. has moved to new quarters (formerly Sine's Lumber, Inc.) in Klamath Falls, Ore.. previous bldg. was destroyed in a Dec. fire . . Visalia Lumber Co., Visalia, Ca., plans a Jan. opening for a new 6,240 sq. ft. retail store they are building . . Arrowsmith MfS., L.A.. is expanding their plant 507o, mostly for their hardware div. . .

Georgia-Pacific has completed a new 123,000 sq. ft. disiribution center in Denver, D. H. McAlonan is mgr. . . OIe's H ome C enters has opened its l lth store. in Reseda. Ca.; they recently hosted a delega- tion of Japonese drug slore executives planning to diversify into home centers .

Comstock Mfg. Co., Stockton, Ca., has been purchased by Oakley Plywood & Doors, Morgan Hill, Ca., and Calif. Builders Supply, Sacramento, in joint venture, for an undisclosed amount, Mike Cardenas is the new v.p. and g/m .

The A. C. Thatcher Lumber Co., Redding, Ca., was described as completely destroyed in an Aug. 2,fte of unexplained origin that burned more than $40,000 of uninsured redwood in the yard alone, according to owner Tom Beeman; total loss may exceed $200,m0 . . .HepIer's Building Center, Molalla, Ore.. is expanding, adding a 3rd warehouse, and has hired 2 new men

Fire in 195,000 acres of Western rangeland and forests occurring during52 major blazes in 5 Western stotes last mo. caused some $100 million damAEa, the eventttal effict on timber supply is unknown . .

P e rmane e r' s distrib ut ion pact with G -P now allows it to sell directly to all customers, including the G-P distribution centers . remodeling studies show that homeowners plan to remodel3.4 million kitchens and 2.8 million baths and to add on rc2,A00 baths in'73

Western log exports are rising, figures for May show a sizeable gain over the Year Previous and a 37)% gain over the previous mo. . domestic lumber prodttction in June (latest figs.) are up0.7% from the Previ-ous mo.,-down 4.4Vo from the June, 1972 rate .

Georgia-Pacific says its R&D has added 50Vo to timber srowth rate over techniques used only 5 years ago, "and w€ can safely talk about a new generation of super trees maturing for harvest in 30 years." how's your Future Shock quotient today?