News stories from Tuesday October 21, 1975

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

Secretary of State Kissinger met with Chairman Mao Tse-tung in Peking and a press release on the meeting said the conversation had taken place in a friendly atmosphere. The invitation was seen as a symbolic endorsement by Mr. Mao of what both sides so far have sought to convey: the idea that Chinese-American relations are getting better all the time. [New York Times] Generalissimo Francisco Franco, Spain's ruler since the 1936-39 civil war, fell seriously ill with a heart ailment, setting off rumors that a transfer of power to Prince Juan Carlos de Borbon was imminent. The seriousness of General Franco's illness was underlined by two visits by Premier Carlos Arias Navarro and a gathering of the 82-year-old chief of state's family. [New York Times] James Lynn, the Budget Director, ran into severe criticism from Republicans as well as Democrats when he went before the Senate Budget Committee to explain the Ford administration's program to tie a spending reduction to a tax cut. The criticism from the members of President Ford's own party was led by Senator Henry Bellmon of Oklahoma, the committee's ranking Republican, and Senator Robert Dole of Kansas, a former chairman of the Republican National Committee. [New York Times] President Ford showed signs of substantial recovery from a sinus infection and a head cold that has confined him to the White House for the last few days. However, his wife, Betty, began displaying cold symptoms. Ron Nessen, the White House press secretary, said the President would probably follow a light work schedule for the rest of the week. [New York Times] Senator Birch Bayh of Indiana announced his candidacy for the Democratic presidential nomination, betting that he can bridge the gap between left and right in his party better than any of his rivals. The 47-year-old Senator made his announcement at the family farm in Shirkieville, near the Illinois-Indiana border, promising to provide "moral leadership." [New York Times] A federal judge in Sacramento has ordered that President Ford submit a video-taped deposition of what he saw when Lynette Alice Fromme allegedly pointed a loaded .45-caliber pistol at him in the California city Sept. 5, Judge Thomas MacBride, in granting the motion sought by Miss Fromme, said, "I think that in the circumstances of this case the President should be asked to testify." [New York Times] The father of Karen Anne Quinlan, his voice cracking with emotion, told a court In Morristown, N.J., that physicians in charge of his daughter's care advised him several weeks ago that her condition was hopeless and that he should take her off the respirator which is sustaining her breathing. Mr. Quinlan said he and his family had signed a permission slip absolving the physicians and the hospital of any liability and went home "thinking it would be done the next day." [New York Times] The Senate Banking Committee has voted 7-6 to consider legislation that would provide $6 billion in loan guarantees to New York City. The measure, however, would require the state to levy $420 million in taxes and place the city's fiscal management under a three-member federal board headed by Treasury Secretary William Simon. Supporters said that without the stringent measures the bill would stand no chance of getting out of committee. [New York Times] Twenty thousand Moroccan volunteers set out in a convoy for the southern border town of Tarfaia, where they plan to wait for King Hassan II to lead 350,000 unarmed Moroccans in a 60-mile "march of conquest" to Spanish Sahara. Premier Ahmed Osman gave the signal for the departure of the truck convoy from the oasis of Dsar-es-Souk in eastern Morocco, as Spain sent a high-level envoy to Rabat to try to persuade King Hassan to stop the desert walk. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 846.82 (+4.57, +0.54%)
S&P Composite: 90.56 (+0.74, +0.82%)
Arms Index: 0.80

	Issues	Volume*
Advances	971	13.37
Declines	454	4.97
Unchanged	429	2.46
Total Volume		20.80

* 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*
October 20, 1975	842.25	89.82	13.25
October 17, 1975	832.18	88.86	15.65
October 16, 1975	837.85	89.37	18.91
October 15, 1975	837.22	89.23	14.44
October 14, 1975	835.25	89.28	19.96
October 13, 1975	837.77	89.46	12.02
October 10, 1975	823.91	88.21	14.88
October 9, 1975	824.54	88.37	17.77
October 8, 1975	823.91	87.94	17.80
October 7, 1975	816.51	86.77	13.53