News stories from Wednesday August 21, 1974

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

President Ford served notice that he intended to run in 1976 for the office he has held less than two weeks. It was surprising that he made the announcement before his nominee for Vice President had been confirmed. Aides said that the move reflected his candor and the quick consolidation of his position that made him feel confident and comfortable in office. [New York Times] Nelson Rockefeller, the Vice President-designate, will probably head President Ford's Domestic Affairs Council and play a key role in anti-inflation efforts, according to informed sources at his summer home in Maine, if Congress confirms him. Aides said that he would broaden his staff from areas other than New York but would try to avoid a "big operation" aura. [New York Times] The House Ways and Means Committee found itself split three ways on proposals for National Health Insurance and Representative Wilbur Mills, the chairman, abruptly adjourned the meeting that was to have settled the final outline. Later he discussed this and other issues with President Ford at the White House and indicated some slight hope of salvaging a bill. It was Mr. Ford's major 1974 domestic proposal. [New York Times] The General Motors Corporation, responding to pressure from President Ford, trimmed its announced price increases on 1975 models from 9.5 percent to 8.5 percent. For a car or truck with average equipment the increase would be $426 instead of $480. Ford Motor Company followed with a statement that it would take competitive prices into account. [New York Times] The Labor Department reported that the steep rise in consumer prices moderated at least temporarily in July. The national index rose by eight-tenths of 1 percent, normally considered a very large rise but the second smallest in this inflationary year. Food prices made the difference, declining by four-tenths of 1 percent, while all other prices taken together continued their rapid increase. [New York Times] The 1-cent increase in the New York City sales tax last month added substantially to the rise in the Consumer Price Index for New York and northern New Jersey, which was 0.5 percent in July. Without it, according to Herbert Bienstock, head of the local Bureau of Labor Statistics office, the increase would have been only 0.34 percent -- the lowest in any of the major metropolitan areas. [New York Times] Rauf Denktash, the Turkish Cypriote leader, said he was prepared to form a provisional independent Turkish state in Cyprus if the Greeks refuse to negotiate a peace settlement. Warning of further Turkish military intervention if Greeks harass Turkish Cypriote villages, he indicated that the refugee problem could be solved by an exchange of populations, moving 60,000 Turkish Cypriotes into the Turkish-held area. [New York Times] High Turkish sources in Ankara denied any annexation moves in Cyprus that would preclude a negotiated settlement with Greece on the island's future. An aide to Premier Bulent Ecevit said Turkey wanted autonomous Greek and Turkish administrations, not a Turkish province in Cyprus. The safety of Turkish Cypriotes is the chief concern of Turkey's government. [New York Times] King Constantine of Greece, still an exile in England, has been telling friends that he is ready to return as a ceremonial monarch and forgo a controversial active role in Greek affairs. They say he has constantly warned that "playing around" in Cyprus would bring on a Turkish invasion Greece could not oppose. [New York Times] At the United Nations population conference in Bucharest, both China and the Soviet Union called Western fears of excessive world population an "imperialist" myth. But the Chinese delegate was even harsher in references to the Soviet Union for suggesting that rapid growth is a millstone on the necks of the developing countries. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 711.59 (-15.36, -2.11%)
S&P Composite: 73.51 (-1.44, -1.92%)
Arms Index: 1.57

	Issues	Volume*
Advances	341	1.87
Declines	976	8.41
Unchanged	405	1.37
Total Volume		11.65

* 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 20, 1974	726.95	74.95	13.82
August 19, 1974	721.84	74.57	11.67
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