News stories from Wednesday July 18, 1973
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- The Nixon administration announced Phase IV economic programs. The current price freeze will be removed in stages, beginning with food. Gasoline prices will remain frozen until August 12, when the new controls take effect. There are no controls on rents, utility rates or interest rates. Small businesses are exempt from notifying the government of price increases. Export controls remain. Wage increase guidelines remain at 5.5%. There will be no tax increase.
Treasury Secretary George Shultz admitted that the immediate outlook for food prices is dim, saying that prices will rise. Shultz called the new controls "tough" and should begin to move the country away from controls altogether. Chicken and egg prices may skyrocket, with beef supply shortages until controls are lifted in September.
[CBS] - Capitol Hill's reaction to the Phase IV controls was quick. Democrat representative Henry Reuss believes that Phase IV was hastily improvised and is too complex; he doesn't think those who must enforce the controls can do the job. A U.S. Chamber of Commerce spokesman stated that Phase IV represents an improvement because it calls for the phase-out of mandatory controls. [CBS]
- Reaction to Phase IV around the country: the milk industry says that a milk shortage is imminent. Poultry executives believe that egg rationing may be needed, and an immediate rise in food prices is predicted. Hog farmers were caught between high grain feed costs and the limited price they could get for hogs during the 60-day freeze. With Phase IV, profits will be able to be made; hog farmers also expect food costs to soar.
Higher costs will likely affect all supermarket items, and many don't believe that those price hikes will be temporary.
[CBS] - The Senate Watergate Committee heard testimony from former White House aide and John Mitchell assistant Fred LaRue. LaRue admitted to being involved in the Watergate cover-up. He stated that at the March 30 meeting in Key Biscayne, Mitchell read G. Gordon Liddy's Watergate plan; it wasn't approved at that meeting, but LaRue noted that Mitchell did not completely reject the cover-up plan either.
LaRue asked Mitchell about the wiretap files possessed by Jeb Magruder, and testified that Mitchell said Magruder should "have a fire." At the June 20 meeting, Liddy told everyone present about the Watergate matter, the Ellsberg break-in, and spying on George McGovern. Liddy then made his dramatic pronouncement, stating that he would never implicate the others involved in the Watergate affair, and he was prepared to be assassinated for the cause.
LaRue admitted taking money from White House funds to deliver payments to the lawyers and families of the Watergate defendants.
[CBS] - Former New York City policeman Anthony Ulasewicz testified before the Senate Watergate committee, and detailed how packages of cash were passed to the Watergate burglars. Ulasewicz received his assignment from White House aide John Caulfield. He testified that
conversations between himself and former Nixon attorney Herbert Kalmbach took place in telephone booths. Ulasewicz became suspicious about what he was asked to do, so he talked with Kalmbach and told him to desist from using him further for money-passing, and Kalmbach agreed.
Lowell Weicker asked about other White House-approved investigations by Ulasewicz. He replied that the sex habits, drinking habits, domestic problems, personal and social activities of political opponents of the White House were probed.
[CBS] - Yesterday's military coup in Afghanistan may not have been as bloodless as first thought. Executions and murders of King Mohammad Zahir's followers appear numerous. Former Prime Minister General Daud led the overthrow. King Zahir was allegedly in Italy vacationing at the time he was deposed. [CBS]
- The FTC says that the eight major oil companies involved in its antitrust complaint should cut back on refinery operations. The oil companies noted that not enough oil is being produced to keep up with the high demand.
Some people think that oil companies contrived the current gasoline shortage to keep supply low and prices high, and some "trust busting" is desired by many organizations and individuals. The FTC actually wants the companies to get out of the oil refining business altogether, because the large companies have a monopoly on oil from the well to the pump. Shell Oil Company president Harry Bridges denied that any oil company monopoly exists. There is a serious energy problem in effect, and the oil industry is trying to solve those problems, he added.
[CBS] - The dollar fell in value on foreign money markets. The Treasury Department and Federal Reserve Board intervened in support of the dollar, probably by using their supply of foreign currency to buy dollars, thus increasing the dollar's value. [CBS]
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Stock Market Report
Dow Jones Industrial Average: 905.40 (+7.37, +0.82%)
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* |
| July 17, 1973 | 898.03 | 105.72 | 18.75 |
| July 16, 1973 | 897.58 | 105.67 | 12.92 |
| July 13, 1973 | 885.99 | 104.09 | 11.39 |
| July 12, 1973 | 901.94 | 105.50 | 16.40 |
| July 11, 1973 | 908.19 | 105.80 | 18.73 |
| July 10, 1973 | 888.32 | 103.52 | 15.09 |
| July 9, 1973 | 877.26 | 102.14 | 11.56 |
| July 6, 1973 | 870.11 | 101.28 | 9.98 |
| July 5, 1973 | 874.32 | 101.78 | 10.50 |
| July 3, 1973 | 874.17 | 101.87 | 10.56 |