News stories from Wednesday July 19, 1978

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

A house committee voted 18 to 7 for a civil service reform bill that was vastly different from what President Carter requested last spring. Indications were that the administration would make one final push to turn matters around and, failing that, gear up for a stiff fight on the house floor. [New York Times] A postal strike loomed as tomorrow night's deadline approached and prospects for an orderly settlement of contract disputes dimmed. Though top union leaders have declined to speak openly about striking, local leaders have vowed to walk out if there is no settlement by midnight, when the old contract expires. The key issue is the refusal of the Postal Service to continue a ban on layoffs, a contract change the unions have refused to accept. [New York Times] Dr. Peter Bourne, the President's top drug and narcotics adviser, was placed on indefinite leave of absence with pay after he acknowledged prescribing a powerful sedative for a fictitious person. The announcement was made after a day of closed meetings with other White House advisers. Dr. Bourne said the drug was intended for a staff member. [New York Times] A top labor leader resigned from the President's Labor-Management Group, charging that the nation's business community was waging "a one-sided class war." The official, Douglas Fraser, president of the United Automobile Workers union, called the Carter administration "ineffective" and the 95th Congress an "abysmal failure." [New York Times] Backers of public financing for congressional campaigns lost their fight to get the controversial proposal to the House floor for a vote and reluctantly gave up until next year. After more than an hour's debate on the wisdom of using federal tax revenue to help cover election costs, members voted to take up a bill that could not serve as a vehicle for a campaign finance amendment. [New York Times] A Connecticut-size missile site is being sought by the Air Force for a proposed intercontinental ballistic missile and its mobile launching system. In listing seven potential sites in the West, the Air Force said at least 6,500 square miles would be needed, and maybe as much as 8,000 -- a quest that seemed certain to spur major environmental concerns. [New York Times] Charged with union embezzlement, one of the nation's top labor leaders, an adviser to three presidents and Governor Carey's appointee as chairman of the New York State Racing Commission, was indicted by a federal grand jury in Brooklyn. The official, Joseph Tonelli, was accused of taking $360,000 from his United Paperworkers International Union. [New York Times] More Israeli-Egyptian negotiations are justified by "progress" at the two-day meeting of foreign ministers in England, according to Secretary of State Cyrus Vance, who announced that he would fly to the Middle East in about two weeks for new talks. Acknowledging that "major differences" remained and that neither side had made substantive concessions, Mr. Vance said he had been impressed by the straightforward give-and-take of the talks and he said that was reason enough to keep them going. [New York Times] A clash erupted in the Israeli Parliament over the opposition leader's meeting with President Anwar Sadat in Vienna last week. The leader, Shimon Peres, was denounced by government ministers when he appeared in Parliament. Prime Minister Menachem Begin derided Mr. Peres's claims that he had helped ease Israel's hard-line image. [New York Times] Warning the Soviet Union and Cuba, Nigeria, black Africa's most powerful nation, told them "not to overstay their welcome" in Africa, Addressing heads of state at a meeting of the Organization of African Unity, the leader of Nigeria's military government, Gen. Olusegun Obasanjo, made it clear he was not condemning Soviet-Cuban intervention, but also indicated that a prolonged Soviet-Cuban presence would not be acceptable. [New York Times] South African violence extends far beyond clashes between the police and racial demonstrators, according to crime statistics. The figures indicate that South Africa is one of the most violent countries in the world, with a high murder rate in black areas, but also with a high incidence of violence among gun-carrying whites. [New York Times] Nicaragua's militant opposition called for a 24-hour nationwide work stoppage as part of a new offensive aimed at forcing the resignation of President Anastasio Somoza. The strike, which closed down most shops, businesses and factories in Managua and other cities, was prompted by what opposition leaders say is an increase in repression. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 840.70 (+11.70, +1.41%)
S&P Composite: 98.12 (+1.25, +1.29%)
Arms Index: 0.34

	Issues	Volume*
Advances	994	24.73
Declines	448	3.74
Unchanged	435	2.38
Total Volume		30.85

* 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*
July 18, 1978	829.00	96.87	22.86
July 17, 1978	839.05	97.78	29.18
July 14, 1978	839.83	97.58	28.37
July 13, 1978	824.76	96.25	23.62
July 12, 1978	824.93	96.24	26.64
July 11, 1978	821.29	95.93	27.47
July 10, 1978	816.79	95.27	22.47
July 7, 1978	812.46	94.89	23.49
July 6, 1978	807.17	94.32	24.99
July 5, 1978	805.79	94.27	23.74