As far as savings and loans are concerned the deficit will be the key post-election issue; because of its impact on interest rates, the budget deficit has industry up in arms.

Regardless of who wins next week's elections, the huge federal budget deficit is one of the most significant problems the Administration and Congress must solve.

Because of its impact on interest rates, the budget deficit perhaps should be the very first issue the election winners tackle.

We believe there is a serious threat that inflation and interest rates will skyrocket again if huge federal deficits persist. The effect on our nation's economy -- and on depository institutions -- would be severe.

In the case of savings and loan associations and savings banks, higher interest rates would at least slow, and perhaps even stop, the restructuring now underway.

That's why the U.S. Leagues of Savings Institutions' primary legislative concern has been the federal budget deficit issue -- and why the league has taken a leadership position in bringing together business and political leaders in an ongoing campaign to encourage a solution to the deficit problem.

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