News stories from Tuesday January 8, 1974
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- President Nixon acknowledged that he took "traditional political considerations" into account in ordering a controversial 1971 increase in federal milk price supports. But he said that charges that he granted favors to milk producers and to the International Telephone and Telegraph Corporation in return for campaign contributions were "utterly false." The President's position was set forth in two White House statements that Mr. Nixon last November promised to make public to get out the "facts" on both cases. But documents supporting the statements were not made public on the ground that they previously were voluntarily delivered to the special Watergate prosecutor. [New York Times]
- The President denied that pledges of campaign funds from ITT and the dairy industry influenced his actions in either case. He insisted that his only action was to contact deputy Attorney General Richard Kleindienst and order him to drop appeals of the ITT case to the Supreme Court, which was done at then-Attorney General John Mitchell's urging; otherwise Solicitor General Ervin Griswold would have resigned in protest. ITT president Harold Geneen had requested a meeting with President Nixon to discuss the case, but no meeting occurred. Nixon denied charges of raising milk price supports in exchange for campaign contributions. [CBS]
- President Nixon may be willing to accept a limited compromise with the Senate Watergate Committee on the release of documents and tape recordings despite the stern position he took last week against the committee's subpoena, White House officials said. The White House also announced that Charles Alan Wright, a constitutional lawyer, had returned to the White House as a part-time consultant to represent the President on the question of executive privilege. [New York Times]
- Vice President Gerald Ford said he is encouraged over the reaction to the plan between the Senate Watergate Committee and White House regarding subpoenas. Committee chairman Sam Ervin is apparently ready to compromise. [CBS]
- The nation's worst inflation since the unusual conditions following World War II continued unabated in December, figures from the Labor Department disclosed. With energy and food products leading, the Wholesale Price Index rose 2.2% last month after allowance for normal seasonal price changes. In "normal" times the index seldom changed by more than two-tenths or three-tenths of 1 percent in a month. [New York Times]
- Price increases for food and fuel accounted for most of the increase. Overall, wholesale prices in 1973 were up 18.2% over 1972 as prices increased steadily over the course of the year. White House economic adviser Herbert Stein and Treasury Secretary George Shultz declined on-camera interviews regarding the price rises. [CBS]
- Labor Secretary Peter Brennan said that if the rate of inflation continues to climb, workers are entitled to higher wages. The administration may ease its 5.5% guideline for pay increases. [CBS]
- President Nixon is expected to propose to Congress this month a national health insurance program for all Americans that would cost about $37.5 billion next year. About $5.6 billion in new federal funds would be spent on the plan, in addition to money that would have gone into the existing Medicare and Medicaid programs, plus contributions from employers, employees and states. [New York Times]
- Secretary of State Kissinger may soon visit the Middle East again to help work out an agreement between Egypt and Israel on separation of their forces along the Suez Canal, State Department officials said. [New York Times]
- In tough action to counter growing opposition to his control, President Park Chung Hee of South Korea decreed that anyone criticizing the Constitution or advocating its revision would be arrested, court-martialed and imprisoned up to 15 years. He proclaimed two presidential "emergency measures" under the Constitution as a group of 30 civic and religious leaders pressed their two-week campaign to collect a million signatures on a petition to him for a democratic Constitution, despite Mr. Park's previous warning. [New York Times]
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Dow Jones Industrial Average: 861.78 (-15.07, -1.72%)
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* |
| January 7, 1974 | 876.85 | 98.07 | 19.07 |
| January 4, 1974 | 880.23 | 98.90 | 21.70 |
| January 3, 1974 | 880.69 | 99.80 | 24.85 |
| January 2, 1974 | 855.32 | 97.68 | 12.06 |
| December 31, 1973 | 850.86 | 97.55 | 23.47 |
| December 28, 1973 | 848.02 | 97.54 | 21.31 |
| December 27, 1973 | 851.01 | 97.74 | 22.72 |
| December 26, 1973 | 837.56 | 95.74 | 18.62 |
| December 24, 1973 | 814.81 | 92.90 | 11.54 |
| December 21, 1973 | 818.73 | 93.54 | 18.68 |