News stories from Tuesday August 17, 1971
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- The new economic policy allows schools to impose higher tuition fees, and teachers, policemen and firemen may still receive scheduled pay raises during the 90-day wage-price freeze; postage rate increases and military pay raises may be delayed.
Congressional leaders met with President Nixon and assured him that quick action would be taken to implement the new policy, though Senator Mike Mansfield said that he doesn't know how cooperative Congress will be 1½ months from now. Senator William Proxmire thinks that the President must take steps beyond the freeze to solve economic problems. AFL-CIO president George Meany called the new policy a tax bonanza for corporations.
[CBS] - The Bank of Japan bought $600 million to maintain the value of the U.S. dollar; Switzerland floated the dollar; American tourists are waiting in long lines to exchange currency. [CBS]
- The Office of Emergency Preparedness has yet to receive guidelines from the Cost of Living Council. They are not giving answers to specific questions in areas where the guidelines aren't yet determined, but expect to be answering most questions by the end of the week. [CBS]
- Private housing starts were up 10% for July over June. [CBS]
- President Nixon praised the auto industry for going along with the price freeze. Ford Motor Company will ask the government to let it charge more for five of its 1972 models; the Pinto is the only 1972 car presently being sold at the 1972 price. [CBS]
- Young entrepreneurs have lower prices than the U.S. Postal Service. In Hinsdale, Illinois, a group set up "Common Carrier" to deliver mail for 5¢ per letter; they have delivered 18,000 letters in two months. The group's profit is running as high as 50%, and they provide delivery service that is quicker than the post office. A spokesman for the U.S. Postal Service says that Common Carrier is in violation of private mail statutes, and those involved could be fined $500 and sentenced to six months in jail. [CBS]
- President Nixon greeted Oakland A's pitcher Vida Blue at the White House. [CBS]
- Residents of San Francisco's Chinatown are asking the Supreme Court to block the busing of their children to other schools. [CBS]
- Alabama Governor George Wallace responded to federal judge Sam Pointer's ruling against Wallace's intervention in a school desegregation case; Wallace said that Pointer doesn't have the brains to try a chicken thief. [CBS]
- Five Army officers responsible for the cover-up of the My Lai massacre are in trouble with the Pentagon. The Army will censure or reprimand the five officers and discharge four enlisted men for their involvement in the My Lai cover-up; Sgt. David Mitchell will be excepted because he was found innocent in his court-martial trial. [CBS]
- U.S. forces reinforced South Vietnamese bases near the DMZ; American B-52 bombers attacked enemy positions in the DMZ. [CBS]
- Typhoon Rose killed over 90 people in Hong Kong. 75 of those who were killed were on a ship which was capsized by the typhoon; 130 m.p.h. winds and rough seas grounded many ships. [CBS]
- Dr. Bernard Finch will be granted parole from his life sentence for murdering his wife 10 years ago. [CBS]
- A Philadelphia lawyer filed a lawsuit against all international airlines on behalf of everyone over 26 years old, charging illegal discrimination on youth fares. [CBS]
- A New York City policeman and his brother were arrested for growing marijuana behind the police precinct station's horse stables in Central Park. [CBS]
- Inflation may flare up again after the wage-price freeze. President Nixon is trying to rally support because the success of his new economic policy depends largely on creating confidence; opponents of Nixon's policy claim it benefits those who manage, own or invest. During the 90-day freeze, guidelines must be set up to prevent inflation from worsening after the freeze and new international currency exchange rates must be worked out. [CBS]
- A late report from the Office of Emergency Preparedness indicates that pay raises for teachers, policemen and firemen during the 90-day freeze may not be allowed. [CBS]
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Stock Market Report
Dow Jones Industrial Average: 899.90 (+10.95, +1.23%)
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 16, 1971 | 888.95 | 98.76 | 31.72 |
| August 13, 1971 | 856.02 | 95.69 | 9.96 |
| August 12, 1971 | 859.01 | 96.00 | 15.91 |
| August 11, 1971 | 846.38 | 94.66 | 11.37 |
| August 10, 1971 | 839.59 | 93.54 | 9.46 |
| August 9, 1971 | 842.65 | 93.53 | 8.11 |
| August 6, 1971 | 850.61 | 94.25 | 9.49 |
| August 5, 1971 | 849.45 | 94.09 | 12.10 |
| August 4, 1971 | 844.92 | 93.89 | 15.41 |
| August 3, 1971 | 850.03 | 94.51 | 12.49 |