News stories from Thursday September 5, 1974

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

In the first of the meetings on the nation's economy, leading economists told President Ford that the country did not face a big depression, but that its economy was likely to remain painfully sluggish. Despite their widely differing philosophies, they approached unanimity in concluding that the time had came for the Federal Reserve Board to ease its relentlessly tough monetary policy that has affected money, credit, interest rates and, indirectly, the stock market. [New York Times] President Ford opened the conference an inflation with an appeal for "action that is practical, possible and as rapid in its effect as we can reasonably expect." The meeting, he said, "unites Republicans and independents and Democrats in an election year against an enemy that doesn't recognize one political party from another." Meanwhile, Senate Democrats resolved to stay in session for the rest of the year if necessary to act on administration proposals dealing with inflation and other national economic problems. [New York Times] In his first official statement as President Ford's principal economic adviser, Alan Greenspan said that he foresaw a "flattened" economy in the months ahead, with some increase in unemployment. He saw no reason for extreme pessimism about the economic outlook. [New York Times] Florida filed charges against one of its biggest condominium developers in an effort to break recreation leases that cost condominium buyers millions of dollars a year. The state's Attorney General said the suit was "very much a test case," and that developers who invest in recreation facilities attached to condominiums would typically have an "unconscionable" windfall profit of between $3 million and $6 million annually for as long as 99 years. [New York Times] Dr. Fred Ikle, director of the Arms Control and Disarmament Agency, warned that a nuclear war could destroy the ozone layer in the stratosphere that protects all living things from the sun's ultraviolet radiation. The potential depletion of the ozone area by nuclear explosions is a new, accidental discovery that arms control officials believe adds an awesome new element to the destructive effects of a nuclear war. [New York Times] Seven major oil companies pleaded not guilty as indictments were formally presented, charging them with violating New York state's antitrust laws. The companies -- Texaco, Shell, Exxon, Gulf, Sunoco, Amoco and Mobil -- were accused of restraining competition from independent dealers. [New York Times] German and American officials in Bonn said that the United States had sought the reaction of its 14 NATO allies to the possible appointment of Gen. Alexander Haig as supreme commander of the alliance. Bonn, according to a West German government source, has no objection. The Dutch, however, are reported trying to organize opposition to the appointment. [New York Times] An administration official said that President Ford intended to appoint Peter Flanigan, a prominent member of the Nixon administration, as Ambassador to Spain and that he has offered Senator William Fulbright the Ambassadorship in Britain. Mr. Flanigan reportedly has accepted, but Mr. Fulbright has expressed misgivings. [New York Times] One of the worst droughts in years has struck northern India and, with fertilizer shortages and a lack of fuel for irrigation pumps, threatens to destroy rice and wheat crops. Tens of millions face food scarcities and perhaps famine. [New York Times] Secretary General Waldheim of the United Nations told the General Assembly in his annual report that profound economic and social problems were threatening the world with a "crisis of extraordinary dimensions." He said there was an "almost universal sense of apprehension" about the direction in which the world might be heading, and feelings of "helplessness and fatalism which I find deeply disturbing." Inflation and insufficient food supplies, Mr. Waldheim said, were immediate problems that had to be solved. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 670.76 (+22.76, +3.51%)
S&P Composite: 70.87 (+2.15, +3.13%)
Arms Index: 0.38

	Issues	Volume*
Advances	996	11.12
Declines	441	1.88
Unchanged	358	1.21
Total Volume		14.21

* 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 4, 1974	648.00	68.72	16.93
September 3, 1974	663.33	70.52	12.75
August 30, 1974	678.58	72.15	16.23
August 29, 1974	656.84	69.99	13.69
August 28, 1974	666.61	70.76	16.67
August 27, 1974	671.54	70.94	12.97
August 26, 1974	688.13	72.16	14.63
August 23, 1974	686.80	71.55	13.59
August 22, 1974	704.63	72.80	15.69
August 21, 1974	711.59	73.51	11.65