News stories from Wednesday October 29, 1975

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

President Ford said he was prepared to veto any bill to rescue New York City by having the federal government guarantee the availability of funds to prevent a default. He sent Congress, as an alternative, a measure that would let the city maintain essential services while filing for bankruptcy. Congressional Democratic leaders indicated that they would continue to seek loan-guarantee legislation now in committee in both houses. House Democratic leaders met to explore methods of linking the President's legislation to a loan-guarantee bill. [New York Times] President Ford's proposal for New York City's crisis was denounced by leading New York Democrats and some Republicans. Mayor Beame called it a default of presidential leadership and said it would revive national divisions and prove costly far beyond New York's boundaries. Governor Carey called it simplistic and self-defeating. State Attorney General Louis Lefkowitz, a Republican, called it "back-of-the-hand treatment." Nassau County Executive Ralph Caso, also Republican, called it "ill-advised, to say the least." [New York Times] Generalissimo Francisco Franco rallied from his gravest crisis yet but his doctors reported that the prognosis had not changed. This was taken to mean that his condition remained "extremely grave." With transfer of power from Spain's 82-year-old Chief of State still held up, there was political confusion in Madrid. An Algerian delegation arrived, adding a new and critical dimension to negotiations on the claims of Morocco to Spanish Sahara. [New York Times] The National Security Agency's director told the Senate Select Committee on Intelligence that for seven years, until 1973, it had secretly scanned international telephone and cable traffic of both American and foreign individuals and groups. Gen. Lew Allen Jr. said it had acted for six government agencies without obtaining court orders or the specific approval of Presidents Johnson or Nixon or their Attorneys General. [New York Times] The over-the-counter drugs used by millions as sleep aids and sedatives are probably ineffective in the recommended dosages and could be dangerous in larger quantities, according to the testimony of physicians before the Senate Monopoly Subcommittee. Its chairman, Senator Gaylord Nelson, said the industry had failed in more than a dozen years to prove their effectiveness. The Wisconsin Democrat noted that since 1962 the law required evidence of effectiveness and safety for all drugs that are on the market. [New York Times] The Senate Defense Appropriations Subcommittee, in a serious setback for Defense Secretary James Schlesinger, restored only $406 million to an appropriations bill that had been reduced $7.6 billion by the House. The bill is expected to win approval of the full committee and Senate passage. Mr. Schlesinger had urged restoration of $2.6 billion of the House cuts. [New York Times] President Anwar Sadat formally asked the United Nations to help reconvene the Geneva conference to make use of "a unique opportunity for peace" in present circumstances in the Middle East. Addressing the General Assembly, he appealed to Secretary General Waldheim, the United States and the Soviet Union to start consultations for an early resumption of the peace talks. Such consultations, the Egyptian President said, should be considered with all the interested parties including the Palestine Liberation Organization. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 838.63 (-12.83, -1.51%)
S&P Composite: 89.39 (-1.12, -1.24%)
Arms Index: 2.02

	Issues	Volume*
Advances	347	1.96
Declines	1,078	12.32
Unchanged	403	1.83
Total Volume		16.11

* 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 28, 1975	851.46	90.51	17.06
October 27, 1975	838.48	89.73	13.10
October 24, 1975	840.52	89.83	18.12
October 23, 1975	855.16	91.24	17.90
October 22, 1975	849.57	90.71	16.06
October 21, 1975	846.82	90.56	20.80
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