Try to make a smaller newspapers, But.....

Depends on how high the resolution is on the original, and how you do the resizing.  Also depends on the resolution of the printer.  Resizing is a complicated function in terms of how you select the resolution.  Maintain the total number of pixels the same.  That means you must insure the pixels per inch is multiplied by the number you are reducing by.  So if the original is 72 ppi and you reduce size by a factor of 10, the new ppi must be 720.  But, some printers may not be able to reproduce 720 ppi.

Be sure, too, in your printer driver, to select top photo quality to get full resolution.  Also, try printing on glossy photo paper, as regular paper limits resolution.

Now, as far as the original quality, if you are scanning a hard copy newspaper be sure you select a sufficient scanning resolution. If you are grabbing an image off internet, you must select a high res file to copy. If the original lacks resolution, reducing it will make it far worse.

If you can't find a hi res page online I would scan a page from a real newspaper at as a a res as your scanner will go.  You will need to do it in sections but should be too much of a problem joining all the individual scan into 1 piece in Photoshop.

There are some printable miniature (1/6) newspapers (and lots of other neat stuff) here.

I believe Don is most correct, it's the dpi of the resized image. rather than resize the image, you should try using software the scales the image instead. i know photoshop can do it (print with preview), so can MSWord (select image and resize it manuallya, then print).

my printer makes small images blurry if i dont select IMAGE OPTIMIZER on the effects page. it also fixed the jagged edges effects on larger images.

That "scaling" is what I meant by resizing.  To non-modelers, and in photo editing software, it is one of the options in the "resizing" function.  It is not the easiest function to use- you need to understand it thoroughly and use some math.  After setting the options, do a careful look at what it is showing before hitting the OK button.