News stories from Friday October 8, 1971

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

Treasury Secretary John Connally explained Phase II today. President Nixon says he would like to cut the inflation rate to 2 or 3% per year. Connally tried to reassure labor leaders with regard to the pay board. Wages and prices will be the pay board's responsibility.Companies and unions will be divided into three groups -- the biggest will need advance approval for wage and price increases; medium sized ones can get approval afterwards, with possible rollbacks; small businesses will just be subject to spot checks. [CBS] A judge in New Orleans ruled that teachers in two parishes are entitled to received pay raises which were promised before the freeze. [CBS] The unemployment rate dropped in September from 6.1% to 6%. Labor Secretary James Hodgson said that it shows the need for Congress to stimulate business to create more jobs by cutting taxes. The AFL-CIO stated that the Nixon economy is not working. [CBS] President Nixon's plan for revenue sharing is stalled in the House Ways and Means Committee. Rep. Wilbur Mills turned down the President's request for action within two weeks; Mills is opposed to the President's revenue sharing plan. [CBS] Secretary of State William Rogers met with Egypt Foreign Minister Mahmoud Riad; a Mideast peace agreement is still hoped for. [CBS] Daniel P. Moynihan, a U.S. representative to the United Nations, debated a U.N. report on the world social situation and he charged the report with factual errors regarding the United States. [CBS] The Foreign Minister of Taiwan urged the United Nations not to weaken itself by admitting the People's Republic of China. Mao Tse-tung met for one hour with Ethiopian Emperor Haile Selassie today. Mao is said to be in good health, contrary to recent reports. [CBS] Army commanders in Argentina demanded the resignation of President Alejandro Lanusse. Their rebellion collapsed in two hours, but the rebels still command sizable forces. [CBS] The Soviet Union expelled 18 British diplomats and businessmen for spying. [CBS] The Viet Cong released Sgt. John Sexton after holding him for two years as a POW; he walked to an allied camp. [CBS] The Secretary of the Army purged Col. Anthony Herbert's file of a bad report which resulted from Herbert's reporting atrocities in Vietnam; now he can be promoted again. Secretary Froehlke refuted Herbert's charge of getting in trouble due to accusing his superiors of war crimes, but the Army did say that an unwarranted opinion was included in the report. Herbert has made new charges of harassment against the Army. [CBS] A rock was thrown at Emperor Hirohito's car while he was in the Netherlands; some were protesting the Emperor's activities in World War II. [CBS] The American Bar Association stated that it is concerned about a report that President Nixon is no longer considering a woman for the Supreme Court. [CBS] The oil spill in the Saginaw River in Michigan has been halted before any major damage was done. [CBS] Four firemen were killed fighting the Santa Barbara, California, brush fire; the fire continues. [CBS] The Great Chicago Fire occurred 100 years ago today. On October 8, 1871, it hadn't rained in 75 days, so the fire kept burning. 18,000 buildings were burned, 100,000 people were left homeless and 300 died. Peshtigo, Wisconsin, suffered the same fate as Chicago on the same day. A fire department was later built on the corner where Mrs. O'Leary's cow allegedly started the Chicago fire. [CBS]

Stock Market Report

Dow Jones Industrial Average: 893.91 (-7.89, -0.87%)
S&P Composite: 99.36 (-0.66, -0.66%)
Arms Index: 1.16

	Issues	Volume*
Advances	526	4.23
Declines	851	7.91
Unchanged	307	1.73
Total Volume		13.87

* 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*
October 7, 1971	901.80	100.02	17.78
October 6, 1971	900.55	99.82	15.63
October 5, 1971	891.14	99.11	12.36
October 4, 1971	895.66	99.21	14.57
October 1, 1971	893.98	98.93	13.40
September 30, 1971	887.19	98.34	13.49
September 29, 1971	883.83	97.90	8.58
September 28, 1971	884.42	97.88	11.25
September 27, 1971	883.47	97.62	10.22
September 24, 1971	889.31	98.15	13.46