News stories from Thursday August 29, 1974

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

State Department officials said that the United States and East Germany would establish diplomatic relations next Wednesday. The first American Ambassador to East Germany reportedly will be John Sherman Cooper, a former Republican Senator from Kentucky, who has been Ambassador to India. This will leave Canada as the only member of the North Atlantic Treaty Organization that has not established diplomatic ties with East Germany. [New York Times] Two subpoenas have been served by a United States marshal on former President Nixon at his estate in San Clemente, Calif. The Justice Department, which announced that the subpoenas were served Wednesday, said they called for Mr. Nixon's testimony as a defense witness at the Watergate cover-up trial scheduled to start Sept. 30 and for his deposition in a civil suit brought by a group of people who were turned away from a 1971 rally for the Rev. Billy Graham, which Mr. Nixon attended. [New York Times] Congress was asked by President Ford to appropriate $850,000 for Mr. Nixon to cover the presidential transition period, his pension and other expenses until June 30. Of the $850,000, $450,000 will be allocated for expenses related to the transition period, which will last six months starting with the day of Mr. Nixon's resignation, Aug. 9. The appropriation would come under the Presidential Act of 1963, which authorizes $900,000 for the transition time between administrations. Administration officials expect that public expenditures for Mr. Nixon will be substantially more than $850,000. [New York Times] Roy Ash, the Budget Director, disclosed that President Ford planned to make an initial test next week of Congress's willingness to go along with cuts in the non-defense budget. He said in an interview that Mr. Ford would send to Congress, under the new Congressional Budget Reform Act, about $20 billion in "deferrals" and "rescissions" of spending. [New York Times] President Ford will receive recommendations on amnesty for Vietnam war draft evaders and deserters Saturday morning, a day earlier than he had requested. Secretary of Defense James Schlesinger and Attorney General William Saxbe met to work out details of their joint recommendations. "We'll have a pretty definite plan, we narrowed it down somewhat today," Mr. Saxbe said. [New York Times] Moses Malone, 19 years old, and 6 feet 11 inches tall, became the highest salaried teenage athlete in the United States. He chose a $3 million, seven-year pro basketball deal instead of the University of Maryland. In spite of a C average throughout high school, More than 300 colleges offered him a scholarship -- about a quarter of all the colleges that field basketball teams. [New York Times] Starting this fall, the New York City Board of Education will offer instruction in basic subjects in both English and Spanish as part of a major new program agreed to in federal court. The program to provide bilingual instruction was mandated in response to a class-action suit brought by two related Puerto Rican self-help groups, which had charged that the city schools had failed to meet the needs of Spanish-speaking children. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 656.84 (-9.77, -1.47%)
S&P Composite: 69.99 (-0.77, -1.09%)
Arms Index: 0.93

	Issues	Volume*
Advances	290	2.57
Declines	1,151	9.51
Unchanged	337	1.61
Total Volume		13.69

* 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 28, 1974	666.61	70.76	16.67
August 27, 1974	671.54	70.94	12.97
August 26, 1974	688.13	72.16	14.63
August 23, 1974	686.80	71.55	13.59
August 22, 1974	704.63	72.80	15.69
August 21, 1974	711.59	73.51	11.65
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