This Day In 1970's History: Tuesday February 4, 1975
- President Ford's annual economic report to Congress warned that more government stimulus through a larger budget deficit would not improve the grim economic outlook. It was accompanied by a longer report from his Council of Economic Advisers. Its chairman, Alan Greenspan, told reporters that to go beyond the stimulus suggested by Mr. Ford "would be trading off some small reduction in unemployment for inflation later" and an undesirably high average unemployment level. [New York Times]
- President Ford told reporters in Atlanta that economic conditions would be favorable enough in 1976 for him to run for a full term. He praised the offer of rebates by auto and appliance companies as an "application of good old free enterprise" and saw trends toward restoring consumer confidence which would in turn speed recovery. [New York Times]
- The House of Representatives rejected the administration's plan to raise the price of food stamps for most participants and passed, 374 to 38, a bill to freeze the price to the end of 1975. A Senate vote is expected today or tomorrow. [New York Times]
- The Federal Reserve Board reduced its discount rate on loans to commercial banks to 6¾ percent from 7¼ percent -- a signal for easier credit conditions. The action was interpreted as another move to stimulate the economy, retreating from its tight-money policy of last year. [New York Times]
- Former Prime Minister Edward Heath yielded the leadership of Britain's Conservative party after losing a party election to Margaret Thatcher, the favorite of the party's right wing. Mr. Heath, who was party chief for 10 years, led the Conservatives to defeat in two elections last year. Another vote of Conservative members of Parliament will be held next week because Mrs. Thatcher did not win by the required margin. The party's chairman, William Whitelaw, entered his candidacy after Mr. Heath withdrew. [New York Times]
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