News stories from Wednesday March 26, 1975

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

Congress passed the Joint Senate-House conference committee bill that would reduce taxes by $22.8 billion. It would give a tax cut of at least $130 this year to every taxpaying individual or family. Persons earning up to roughly $30,000 would get more, as would those with one or more dependents. The bill would repeal the 22 percent oil depletion allowance this year for major companies, but smaller companies would keep it at a rate declining to 15 percent in 1984. The total tax cut reduction is considerably less than the $30.6 billion approved by the Senate, and less than the figure of $25 billion to $30 billion urged by many economists to halt the sharp business downturn. The bill will go to President Ford, who had proposed a $16.2 billion cut. [New York Times] Secretary of State Kissinger told a televised news conference that the Middle East was in potentially grave danger because of his failure to achieve an Egyptian-Israeli agreement. He said the Geneva peace conference would probably have to be reconvened under more difficult circumstances to seek a way of avoiding a new war. Clearly worried by the general decline of American influence, he urged a renewed sense of national purpose to cope with the Middle East and other areas. [New York Times] King Faisal of Saudi Arabia was buried in Bedouin tradition near the grave of his father who founded the state, after prayers attended by 100,000 people. A stream of tribal elders, officials and ordinary people came to the palace to pledge their persons and property to the new King Khalid, who received them with simplicity and kindness. At his side was Fahd, the new Crown Prince. Chiefs of state of most Arab countries attended the funeral. Vice President Rockefeller, representing President Ford, is expected to meet the new King and Prince Fahd today. [New York Times] With all roads out of the major port city of Da Nang cut, Western observers there said the North Vietnamese had more than 35,000 men increasing their pressure and able to strike at it. South Vietnam's President, Nguyen Van Thieu, broadcast an appeal to his people and armed forces to stop the enemy advance short and hold defense lines to the last. American charter planes evacuated many Americans and many of their South Vietnamese employees as well as some South Vietnamese officials from Da Nang. A major airlift of refugees is being planned. But some doubted the demoralized government troops could hold. [New York Times] The South Vietnamese government announced the arrest of a number of persons for plotting to overthrow President Nguyen Van Thieu. The Ministry of Interior said that the conspiracy was linked to the current Communist military offensive and sought to upset the constitutional regime. [New York Times] Secretary of State Kissinger, in an effort to break an impasse with Congress, revived the administration proposal for a three-year phase-out of military and economic aid to South Vietnam. To withhold aid now, he said at a news conference, would destroy an ally in its moment of extremity and violate a moral commitment. He acknowledged strong feelings in Congress against the annual aid appropriation and said there was a chance that in three years, with adequate aid, South Vietnam could become more self-sustaining. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 766.19 (+18.30, +2.45%)
S&P Composite: 83.59 (+1.53, +1.86%)
Arms Index: 0.42

	Issues	Volume*
Advances	1,133	15.15
Declines	327	1.85
Unchanged	323	1.59
Total Volume		18.59

* 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*
March 25, 1975	747.89	82.06	18.50
March 24, 1975	743.43	81.42	17.81
March 21, 1975	763.06	83.39	15.94
March 20, 1975	764.00	83.61	20.96
March 19, 1975	769.48	84.34	19.03
March 18, 1975	779.41	85.13	29.16
March 17, 1975	786.53	86.01	26.78
March 14, 1975	773.47	84.76	24.84
March 13, 1975	762.98	83.74	18.62
March 12, 1975	763.69	83.59	21.56