News stories from Tuesday August 2, 1977

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

President Carter asked Congress to end federal criminal penalties for possession of small amounts of marijuana. He also proposed a concentrated crackdown on the international narcotics traffic, a study of the use of barbiturates and other widely consumed sedatives, and improved programs for drug research and treatment. [New York Times] The Senate set back President Carter's plans for election-law reforms once again, voting 58 to 39 to kill a proposal for public financing of Senate election campaigns. The proposal's defeat came after efforts to break a filibuster by Republicans and Southern Democrats had failed. [New York Times] The bill to establish a department of energy won approval in both houses of Congress. President Carter is expected to sign it tomorrow, clearing the way for him to appoint his energy adviser, James Schlesinger, to the new cabinet post. A Senate committee hearing on his nomination opens Wednesday. [New York Times] The Carter welfare revision program ran into stiff opposition from Representative Al Ullman, chairman of the House Ways and Means Committee, who said after a meeting with the President that he strongly objected to the way the program would treat the working poor. There were indications that Mr. Carter might consider delaying its submission to Congress.Public antagonism to the concept of public welfare, along with strong support for what welfare programs do, emerged in a poll of national political and social sentiments taken by the New York Times and CBS News. Even those who have received welfare benefits sometimes say that they oppose the idea of welfare. [New York Times] A thousand telephone calls deluged New York City police lines in connection with the search for the so-called "Son of Sam" killer who has killed six persons with a .44-caliber revolver. The department renewed appeals for witnesses to come forward if they sighted a yellow Volkswagen. [New York Times] Los Angeles is the Olympic favorite, with New York and New Orleans also in the running, for designation by the United States Olympic Committee as the American city that would be the host for the summer games in 1984. Chances for an American city are considered to be good. [New York Times] A two-year delay in starting the proposed natural gas pipeline along the so-called "Alcan" route across Canada from fields in northern Alaska to the United States has been recommended by a Canadian government board of inquiry. It also asks payments to compensate for the line's "overall negative effect" on the Yukon and for settling Indian land claims that would further raise the projected $8.6 billion cost of the line. [New York Times] Central Intelligence Agency records made public under the Freedom of Information Act showed that in 1958 mental patients at a Canadian hospital were given powerful tranquilizers and LSD in an experiment supported by a foundation that secretly dispensed money for the C.I.A. [New York Times] An apparent switch in labels on the oxygen and nitrous oxide outlets in the emergency room at Suburban General Hospital near Norristown, Pa., that lead to an undetermined number of deaths is under investigation by the state health authorities. An administrator said the toll was likely to be no higher than five. [New York Times] Stock prices retreated in sluggish trading. The Dow Jones' industrial average fell to its lowest level since January, 1976, dropping 4.42 points to close at 887.39. The second-most-active issue was General Motors, which was down ¾ at closing, after which its directors announced a typical but disappointing 85-cent quarterly dividend. Investors had hoped its excellent second-quarter performance would mean a higher dividend in September. [New York Times] Toyota will lease 30 acres in Port Newark from the Port Authority of New York and New Jersey for a plant to assemble trucks and to prepare cars for distribution, according to Port Authority officials. The officials hope this will show the value of sending representatives overseas to urge manufacturers to locate in the port area, at a time when such trips have come under scrutiny. The Japanese company's decision could also be a factor in the New Jersey election, since Governor Byrne has been criticized for accompanying Port Authority officials to Japan last year to encourage investments. [New York Times] A Geneva conference is out for the time being, Secretary of State Cyrus Vance acknowledged at a joint news Conference with President Anwar Sadat of Egypt following their meeting In Alexandria. Mr. Vance said he had accepted an Egyptian idea and would seek to form a working group of the Arab and Israeli foreign ministers in New York and Washington to prepare for a Geneva meeting. [New York Times] South Korean political dissidents currently in prison are undergoing intense psychological and physical pressures to sign statements of repentance for their opposition and political "crimes." Of at least 260 political prisoners, 14 have been released and there are rumors that many more will be freed soon. This is seen as a face-saving effort by the government, to improve its image in Washington. [New York Times] Demand for the pound surged in July, bringing Britain's reserves of gold and foreign currency to a record of $13.42 billion, more than three times their low point last December. Much of the demand has come recently, from those dumping holdings of a skidding dollar. The massive inflow to Britain demonstrates the extent that confidence in the pound has revived since the emergency $3.9 billion loan from the International Monetary Fund in December. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 887.39 (-4.42, -0.50%)
S&P Composite: 98.50 (-0.62, -0.63%)
Arms Index: 2.03

	Issues	Volume*
Advances	430	2.60
Declines	998	12.28
Unchanged	462	3.03
Total Volume		17.91

* 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*
August 1, 1977	891.81	99.12	17.92
July 29, 1977	890.07	98.85	20.35
July 28, 1977	889.99	98.79	26.34
July 27, 1977	888.43	98.64	26.44
July 26, 1977	908.18	100.27	21.39
July 25, 1977	914.24	100.85	20.43
July 22, 1977	923.42	101.59	23.11
July 21, 1977	921.78	101.59	26.88
July 20, 1977	920.48	101.73	29.38
July 19, 1977	919.27	101.79	31.94