News stories from Monday August 19, 1974

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

President Ford announced that he intended to grant limited amnesty for the nation's 50,000 Vietnam war draft evaders and deserters "to bind up the nation's wounds." In a statement that took his audience at the National Convention for the Veterans of Foreign Wars in Chicago by surprise, Mr. said even though he continued to oppose "unconditional blanket amnesty," he had ordered a study to determine how the young men who refused to fight in the Vietnam war might be permitted to "work their way back" to full citizenship. As he outlined his plan, a hush fell over his audience and the subsequent applause was restrained. Members of the veterans organization had apparently expected him to continue the policy of President Nixon, who had strongly opposed amnesty. [New York Times] The Senate and House passed slightly differing versions of legislation that would establish a federal group to help President Ford monitor the national economy and perhaps "jawbone" it. Neither bill gives the President the authority to institute wage and price controls, power that Mr. Ford said he does not want. The two measures are intended instead to prod labor and management into exercising some degree of restraint in seeking wage and price increases. Liberals sought but failed to put some teeth in the Senate bill. [New York Times] Despite requests by the prosecution and four of the Watergate defendants for a delay, Judge John Sirica of the Federal District Court in Washington ruled that the Watergate cover-up trial would begin as scheduled on Sept. 9. [New York Times] Rodger Davies, the United States Ambassador to Cyprus, was killed by a bullet that penetrated his embassy in Nicosia during an anti-American demonstration by Greek Cypriotes who believed that the United States had sided with Turkey. Antoinette Varnavas, an Embassy secretary who went to his aid, was also killed. [New York Times] In a quickly arranged news conference in Washington, Secretary of State Kissinger, hoping to persuade Greece to resume Cyprus peace talks with Turkey, pledged that the United States would use its influence "in any negotiation to take into full account Greek honor and national dignity." He offered as a negotiating incentive to Athens assurances he said he received this morning by telephone from Premier Bulent Ecevit of Turkey. Mr. Ecevit reportedly said that Turkey would be flexible in negotiating demarcation lines between the Greek Cypriote and Turkish Cypriote communities in Cyprus, would reduce the size of her holdings in Cyprus, and would carry out phased reductions of armed forces on the island. [New York Times] In one of the most important steps the Greek government has taken in breaking the power of the military, which ruled the nation for seven years, Athens made changes in the command structure of the armed forces. The changes were ordered by the Supreme Council of National Defense, a civilian-dominated body. [New York Times] Premier Kim Jong Pil of South Korea, his entire cabinet and other top government leaders, submitted their resignations to President Park Chung Hee as a gesture of responsibility for permitting the assassination attempt last week that killed Mrs. Park. Though such a resignation is symbolic in South Korea, it may have political significance by giving President Park a sweeping opportunity to reconstitute his troubled government. There was no indication of which of the resignations would be accepted. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 721.84 (-9.70, -1.33%)
S&P Composite: 74.57 (-1.10, -1.45%)
Arms Index: 1.26

	Issues	Volume*
Advances	288	1.77
Declines	1,092	8.45
Unchanged	372	1.45
Total Volume		11.67

* 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 16, 1974	731.54	75.67	10.51
August 15, 1974	737.88	76.30	11.13
August 14, 1974	740.54	76.73	11.75
August 13, 1974	756.41	78.49	10.14
August 12, 1974	767.29	79.75	7.78
August 9, 1974	777.30	80.86	10.16
August 8, 1974	784.89	81.57	16.06
August 7, 1974	797.56	82.65	13.38
August 6, 1974	773.78	80.52	15.77
August 5, 1974	760.40	79.29	11.23