News stories from Tuesday February 13, 1973

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

President Nixon devalued the dollar; reaction is generally favorable so far. Economist William Wolden says that devaluation is the economic parallel of Nixon's Peking trip. But National Planning Association chief economist Wilfred Lewis believes that devaluation will have little impact on the economy and he feels that a recession is coming.Meeting with Treasury Secretary George Shultz and adviser John Ehrlichman, President Nixon said that the next step is massive new trade legislation. Rep. Henry Reuss approves of the devaluation, but pointed out that imported products will now cost more. Senator William Proxmire said that more effective anti-inflation measures must be enacted, and government spending must be kept down. International Monetary Fund managing director Pierre-Paul Schweitzer feels that no further devaluation will be necessary, and the dollar may even get too strong. Devaluation will affect the American consumer to some extent. Foreign goods will cost about 10% more in the United States. [CBS] A UPI reporter noted that "Europe on $5 a day" now costs $5.50. American tourists in Europe reacted unfavorably to the devaluation, but activity in London banking houses was calm after frantic activity before the devaluation. Bankers are just glad that the crisis is over. [CBS] North Vietnam announced that it will release 20 more American POWs within the next few days. Pentagon spokesman Jerry Friedheim suggested that this may be a gesture of good will toward Henry Kissinger, who has been visiting Hanoi. Commander Brian Woods and Maj. Glen Perkins left Clark Air Force Base for America before the rest of the released prisoners; the mothers of both men are seriously ill. Commander Woods expressed his pride in America and in the President. Pentagon Dr. Roger Shields said that discipline and dignity helped the POWs survive in North Vietnam, and most are now in good health. The freed POWs have excellent appetites. They will return to the U.S. soon, and some will collect as much as $100,000 in back pay.An AP reporter at Clark AFB said that some of the POWs tried to get a bus to go to a night club, but failed. As the first two POWs return to America, flags are still being flown at half-mast to mourn the death of Lyndon Johnson, but they will be raised to honor the POWs. [CBS] In the last few years many planes have been hijacked to Cuba. An agreement has now been reached between the U.S. and Cuba regarding anti-hijacking measures. President Nixon disclosed the agreement today although Secretary of State Rogers said that the details are not complete yet. Officials cautioned that this agreement doesn't necessarily mean renewed diplomatic relations with Cuba. [CBS] Beginning Friday, armed police must be posted at all airport boarding gates. [CBS] Secret Service agent Robert Taylor has been ousted after six years as head of the White House Secret Service detail. Press secretary Ron Ziegler denied reports that Taylor's dismissal was the result of friction with Nixon Chief of Staff H.R. Haldeman. [CBS] The federal government fined Ford Motor Company $7 million for tampering with cars that were undergoing anti-pollution tests. Ford announced earnings of $870 million in 1972. [CBS] The National Council of Churches said that the first amendment is under serious attack, citing the jailings of reporters and pressure on broadcasters. [CBS] The Veterans Administration announced that the families of at least eight POWs will not have to repay life insurance benefits they received when it was thought that the prisoners were dead. Returning POWs are being showered with gifts from individuals, groups and businesses. [CBS]

Stock Market Report

Dow Jones Industrial Average: 996.76 (+5.19, +0.52%)
S&P Composite: 116.78 (+0.72, +0.62%)
Arms Index: 0.86

	Issues	Volume*
Advances	903	14.12
Declines	600	8.09
Unchanged	320	3.11
Total Volume		25.32

* 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*
February 12, 1973	991.57	116.06	16.13
February 9, 1973	979.46	114.68	19.26
February 8, 1973	967.19	113.16	18.44
February 7, 1973	968.32	113.66	17.96
February 6, 1973	979.91	114.45	15.72
February 5, 1973	978.40	114.23	14.58
February 2, 1973	980.81	114.35	17.47
February 1, 1973	985.78	114.76	20.67
January 31, 1973	999.02	116.03	14.87
January 30, 1973	992.93	115.83	15.27