News stories from Thursday September 9, 1971

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

President Nixon spoke before Congress, stating that the wage-price freeze will be ended after 90 days but some form of stabilization will be imposed beyond the freeze to assure that America is not afflicted again by runaway inflation. He announced that there will be meetings with Congress, business, labor and agricultural leaders to plan Phase II. President Nixon will meet tomorrow with labor leaders, including AFL-CIO president George Meany.House Ways and Means Committee chairman Wilbur Mills expressed surprise that the President didn't extend the freeze, and he hopes that the steps to be taken beyond the freeze will be announced before the 90 days elapse. Mills fears that wage-price restraints may be necessary for some time in order to break the pattern of inflation. Budget director George Shultz testified before the House Ways and Means Committee that he expects the unemployment rate to drop below 5% by next July, and he outlined $5 billion in proposed federal spending cuts. [CBS] The Senate passed an anti-poverty bill; the bill now goes to the House. [CBS] Treasury Secretary John Connally noted that the Florida Telephone Corporation has yet to indicate its compliance with the Cost of Living Council's ruling against dividend increases. [CBS] Secretary of State William Rogers opened the U.S.-Japan economic talks; Japan declined to co-sponsor the U.S. plan for a "two Chinas" policy at the United Nations. Rogers demanded a 15% upward revaluation of the yen and an end to Japanese restrictions on U.S. imports and investments. Japanese Foreign Minister Takeo Fukuda rejected both demands and called for the U.S. to lift its 10% import surcharge. [CBS] The Pentagon responded to the Senate Armed Services Committee's criticism of defense spending. Deputy Defense Secretary David Packard recommended competition in the development of prototypes, with the Pentagon awarding a defense contract only after testing. Military planners believe that the U.S. can't afford the delays which would be involved in Packard's plan. The Pentagon says that inflation and increasing personnel costs prevent the defense spending situation from improving, even if a more efficient weapons development system is found. [CBS] The Democratic party reform commission proposed the revision of convention committees and recommended that committee work be done before next year's national convention. [CBS] Inmates are rioting at Attica state prison in New York, where 800 prisoners have gained control of four cell blocks; state troopers used tear gas to retake two of the cell blocks. Eleven prison guards have been injured; prisoners are holding 30 hostages. The riot began following a rumor that two inmates had been beaten. [CBS] Hurricane Fern is expected to reach Galveston, Texas, before midnight. [CBS] U.S. negotiator William Porter arrived for his first session at the Paris Peace Talks, no progress was reported. [CBS] The prosecution concluded its case against Capt. Ernest Medina; defense begins Monday. [CBS] Arrest warrants were prepared for six Ku Klux Klansmen in connection with the August 30th bombing of 10 school buses in Pontiac, Michigan. Ten anti-busing protesters were arrested today. Grade school attendance is off 30-40% in Pontiac. [CBS] East and West Germany broke off the Berlin agreement implementation talks until next week. [CBS] President and Mrs. Nixon will attend the opening of the John F. Kennedy Center for the Performing Arts concert hall tonight. 2,200 people attended the performance of Leonard Bernstein's Mass in the Center's opera house yesterday. Rose Kennedy, Senator Edward Kennedy and family, and members of President Kennedy's administration were among those who attended; Jacqueline Kennedy will visit the Center at a later date. [CBS] A 3-year-old boy was struck and killed by a British army truck in Londonderry, Northern Ireland. [CBS]

Stock Market Report

Dow Jones Industrial Average: 915.89 (-5.04, -0.55%)
S&P Composite: 100.80 (-0.54, -0.53%)
Arms Index: 1.13

	Issues	Volume*
Advances	575	5.39
Declines	826	8.73
Unchanged	280	1.66
Total Volume		15.78

* 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*
September 8, 1971	920.93	101.34	14.23
September 7, 1971	916.47	101.15	17.08
September 3, 1971	912.75	100.69	14.04
September 2, 1971	900.63	99.29	10.69
September 1, 1971	899.02	99.07	10.77
August 31, 1971	898.07	99.03	10.43
August 30, 1971	901.43	99.52	11.14
August 27, 1971	908.15	100.48	12.49
August 26, 1971	906.10	100.24	13.99
August 25, 1971	908.37	100.41	18.28