News stories from Thursday September 1, 1977

Summaries of the stories the major media outlets considered to be of particular importance on this date:

Bankers generally do not agree with Bert Lance's assertion that he had conducted his banking business in typical banker-like fashion. They believe that a number of Mr. Lance's banking practices were outside the limits of customary or even acceptable behavior. Some bankers, in interviews, defended as relatively commonplace a few of Mr. Lance's practices that have come under attack, such as his borrowing from correspondent banks at relatively low interest rates. Most of the criticism was directed at the large overdrafts Mr. Lance and his relatives were permitted to carry. [New York Times] An increase of one-tenth of 1 percent was registered in August by the government's Wholesale Price Index, which anticipates what consumers will pay. Food was the only category that declined at the wholesale level. The small increase following two months of decline was in keeping with the administration's forecasts of a more modest inflation rate in the second half of this year. [New York Times] General merchandise chain stores reported healthy sales increases in August over a year ago. The K Mart Corporation's 19.2 percent increase was the largest. Sears, Roebuck sales increased 15.3 percent. [New York Times] The stock market advanced moderately, encouraged by substantial sales increases at the major general merchandise chain stores in August and only a modest rise in the government's Wholesale Price Index last month. The Dow Jones industrial average rose 3.37 points to 864.86. [New York Times] A four-year lapse between the discovery of a defect in 1972-model Fords and the recall of 424,000 cars last June was due to a "regrettable" mistake, Henry Ford II, chairman of the Ford Motor Company said at a news conference, whose main subject was supposed to have been the coming model year in the auto industry. Engine cooling fans were found to be defective in 1973. One death and 11 injuries were linked to the defect. The company recalled the cars when the federal highway safety agency said a fan had caused a mechanic's death. [New York Times] The Vatican has ordered a New York priest who has been a leading advocate of a more liberal view of homosexuality an the part of the church to keep silent on the subject. The Rev. John McNeill was informed of the order by a Jesuit superior. The Vatican also ordered that future editions of a book on homosexuality by Father McNeill may no longer carry its "imprimi potest." The church had sanctioned the book in 1975. [New York Times] Ethel Waters, singer and actress on Broadway for many years before making another career in motion pictures, radio and television, died at the home of friends in Chatsworth, Calif. She was 80 years old. [New York Times] The South Korean government is being pressed to cooperate with the House Ethics Committee's investigation of Korean influence buying in Washington, congressional officials said. The disclosure of the secret indictment of Tongsun Park, allegedly Seoul's principal agent in Washington, is expected to strengthen the hand of the negotiators dealing with the South Korean, one of whose objectives is the return to this country of Mr. Park.The Justice Department's sealed indictment of Mr. Park is expected to be followed by the indictment soon of at least one and possibly several former members of Congress, officials close to the investigation said. [New York Times] Tokyo and Washington reached an agreement that would allow Japan to open a nuclear fuel reprocessing plant that the Carter administration had opposed in keeping with its policy of curbing the spread of nuclear weapons. The United States provides the enriched uranium that is used in Japanese nuclear power plants and has had a virtual veto over the use of the spent fuel that would be used in the reprocessing plant. [New York Times] An Israeli security plan for the occupied West Bank, reportedly prepared by a government minister, provides that Arab "trouble spots" be surrounded with new Jewish urban and rural settlements requiring tens of thousands of new settlers. The plan was described by the Israeli newspaper Maariv, which said that it was being completed under the supervision of the Minister of Agriculture, Ariel Sharon, who is chairman of the ministerial committee on settlements. He is a former general. [New York Times] China's leaders have started to reverse many of Mao Tse-tung's radical education reforms and are returning to more conventional ways. Examinations are being reinstituted, teachers are being given power to discipline students and high school graduates are being admitted directly to college without having to spend at least two years working in the countryside. Chinese educators say that changes made during the Cultural Revolution hindered the development of the highly trained labor force that China needs. [New York Times] Rhodesia was presented with a plan worked out by Britain and the United States for overcoming the 12-year Rhodesian constitutional impasse over transferring the government to the black majority. Prime Minister Ian Smith was warned that rejection of the proposals would bring disaster to the region. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 864.86 (+3.37, +0.39%)
S&P Composite: 96.83 (+0.06, +0.06%)
Arms Index: 1.04

	Issues	Volume*
Advances	854	9.68
Declines	514	6.07
Unchanged	472	3.07
Total Volume		18.82

* in millions of shares

Arms Index is the ratio of volume per declining issue to volume per advancing issue; a figure below 1.0 is bullish.

Market Index Trends
Date	DJIA	S&P	Volume*
August 31, 1977	861.49	96.77	19.08
August 30, 1977	858.89	96.38	18.22
August 29, 1977	864.09	96.92	15.28
August 26, 1977	855.42	96.09	18.48
August 25, 1977	854.12	96.15	19.40
August 24, 1977	862.87	97.23	18.17
August 23, 1977	865.56	97.62	20.29
August 22, 1977	867.29	97.79	17.87
August 19, 1977	863.48	97.51	20.80
August 18, 1977	864.26	97.68	21.04