News stories from Wednesday November 10, 1971
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- A report on Phase II prices was issued. Price controls will be lifted on old and used cars, custom-made items, commercial rents and rents on new and rehabilitated houses, real estate and office royalties, dues to non-profit organizations, and jewelry and collector's items. Cost of Living Council director Donald Rumsfeld said that those items were chosen due to their small impact on the economy.
The rest of the economy is divided into three parts as far as checking post-freeze wages and prices: Tier 1 includes wage adjustments affecting 5,000 or more workers, and companies doing $100 million of business; they must have advance approval of the Pay Board.
Tier 2 is for pay adjustments affecting 1,000-5,000 workers, and companies doing $50-$100 million worth of business; they are required to report to the Pay Board, but do not need advance approval.
Tier 3 is made up of 83% of American workers, and companies selling less than $50 million annually; they will be subject only to spot checks. The administration is relying strongly on voluntary compliance.
[CBS] - The Federal Reserve Board cut the discount interest rate from 5% to 4.75%. [CBS]
- The Chinese delegation to the United Nations is in Paris, en route to New York City. Foreign Minister Ambassador Huang Hua said that he sees China's role at the United Nations as protecting the third world against the superpowers. He demanded that all of Chiang Kai-shek representatives be expelled.
The Chicago Sun-Times reported that the head of the advance party, Kao Liang, is a leading Chinese intelligence agent who was expelled from India in 1960 and from the island of Mauritius in 1964, and he played a major role in the pro-Peking coup in Tanzania in 1964.
[CBS] - Cuban leader Fidel Castro is visiting Chilean President Salvador Allende. In Santiago, there was a motorcade through the city, where enthusiastic crowds greeted Castro. The visit shows the decline of U.S. influence in Latin America. [CBS]
- Soviet dissident Vladimir Bukovsky was arrested in March for saying that sane people in Russia are sometimes put in mental institutions due to their political views. A panel of psychiatrists ruled that Bukovsky is sane and therefore can stand trial for his anti-Soviet activities. [CBS]
- The Senate voted 46-6 to approve a treaty to return the island of Okinawa to Japan after 27 years of U.S. occupation; the Japanese legislature must ratify the treaty. [CBS]
- Democratic presidential candidate Fred Harris withdrew from the race, saying that he does not have enough money to run. Senator Harris said that America is ready for fundamental change and he believes that a new populist coalition can turn America around, but without funds he cannot continue to campaign; Harris is $40,000 in debt. Harris says that the Democratic party candidate must be for fundamental change or he will not get elected.
Senator George McGovern is the only declared candidate; Senators Henry Jackson, Edmund Muskie, Hubert Humphrey and Edward Kennedy are as yet undeclared.
[CBS] - It is being reported that Agriculture Secretary Clifford Hardin may resign; the White House won't deny the report. [CBS]
- Organized labor has joined the attack on Supreme Court nominee William Rehnquist. AFL-CIO spokesman Andrew Miller called him a "right-wing zealot". UAW president Leonard Woodcock also urged the rejection of Rehnquist. Senate Judiciary Committee chairman James Eastland said that Rehnquist is being persecuted without cause. [CBS]
- Congress is considering a plan to temporarily continue foreign aid while the fate of the program is decided. The State Department reported that if there is no action by Monday, the foreign aid operation must shut down and there won't be money to send those who are abroad home. [CBS]
- The U.S. Marine Corps celebrated its 196th anniversary today and paid tribute to the 40,000 Marines who have died in American wars. At Arlington, Virginia, General Leonard Chapman noted that this is the first anniversary since 1964 that Marines are not in combat. [CBS]
- Five Americans were killed when their helicopter was shot down near Saigon. Two more were killed by a booby trap near Hue, South Vietnam. Guerrillas raided areas near Phnom Penh, Cambodia.
1,000 American servicemen in Vietnam have signed a petition against continuing American military involvement in Vietnam; the petition will be sent to Navy Secretary John Chafee. The petition has reportedly been barred from some bases.
South Vietnamese politician Nguyen Van Bong was killed by a bomb which had been planted inside his car.
[CBS] - Schools have been closed in Independence, Missouri, because voters are refusing to spend money to open them. Voters defeated, for a third time, a proposed property tax increase to reopen the schools. The school board refuses to cut back on education programs and will not consider alternate funding methods. The board will open schools on Monday for one month in anticipation of receiving due funds. Taxpayers say that the schools must get money other ways or spend what they have more effectively. [CBS]
- Two 20-year-old women in Ann Arbor, Michigan, set themselves on fire and are in critical condition. One woman said she did it because "dying is beautiful". [CBS]
- Meeting in Anaheim, California, a conference of the American Heart Association stated that drinking alcohol every day for two years or more even in moderate amounts causes heart damage. [CBS]
- With speeches in New York City and Chicago, President Nixon unofficially opened his 1972 campaign. He noted that the Vice President's job can be as difficult as the President's, and praised Spiro Agnew. [CBS]
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Stock Market Report
Dow Jones Industrial Average: 826.15 (-11.76, -1.40%)
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* |
| November 9, 1971 | 837.91 | 94.46 | 12.08 |
| November 8, 1971 | 837.54 | 94.39 | 8.52 |
| November 5, 1971 | 840.39 | 94.46 | 10.78 |
| November 4, 1971 | 843.17 | 94.79 | 15.75 |
| November 3, 1971 | 842.58 | 94.91 | 14.59 |
| November 2, 1971 | 827.98 | 93.18 | 13.33 |
| November 1, 1971 | 825.86 | 92.80 | 10.96 |
| October 29, 1971 | 839.00 | 94.23 | 11.71 |
| October 28, 1971 | 837.62 | 93.96 | 15.53 |
| October 27, 1971 | 836.38 | 93.79 | 13.48 |