News stories from Sunday August 21, 1977

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

The government's investigation of Bert Lance's financial affairs when he was a banker is leading to a general banking inquiry. Senator William Proxmire, chairman of the Senate Banking Committee, announced a broad investigation of the "ethics and soundness" of American banking. He said that the practices described by the Comptroller of the Currency's report on Mr. Lance "go to the very heart of the ethical, efficient and sound conduct of the American banking system." [New York Times] Voyager 2 flew steadily toward Jupiter on its interplanetary journey after a fitful start from Cape Canaveral. Project officials were reassured that they would not have to modify its twin spacecraft, scheduled for launching Sept 1. [New York Times] A new, independent federal crime statistics bureau is being organized by Attorney General Griffin Bell. It would replace a fragmented and much-criticized system of measuring crime in the nation that has been a joint responsibility of the Federal Bureau of Investigation, the Law Enforcement Assistance Administration and several other departments. [New York Times] The newspaper coverage of the "Son of Sam" case has raised some tough questions for American journalism. Among the issues are the degree to which constitutional guarantees of press freedom imply unstated responsibilities, and the difference between reporting and exploiting the news. [New York Times] A booming business is being done by counterfeiters, forgers and dealers on both sides of the Mexican border in the sale of altered and falsely obtained identification papers to be used by illegal aliens to get into the United States. The ease with which dealers and aliens are able to obtain authenticated copies of genuine documents and improved photocopying techniques that make copies look real complicate the problem of immigration officials. [New York Times] The credit markets last week made their biggest gain since last June, but few people in Wall Street seemed convinced that the advance would last very long. The main reason for the rally, a broker said, "appears to have been the realization that short-term rates, as measured by federal funds, have already made their most dramatic moves." The federal funds rate climbed from a weekly average of 5.45 percent in the week ended July 27 to 5.94 percent in the week ended last Wednesday. On Thursday and Friday, the rate was slightly above 6 percent. [New York Times] A financial disaster has struck the government-owned British Steel Corporation as it struggles to compete in the marketplace. A few years ago it appeared that the government's 1967 decision to take control of the steel industry by acquiring 14 companies was about to pay off. Heavy investment in new plants had gone far to overcome years of neglect caused by uncertainty. The company was earning steady, though modest, profits until it lost $416 million at present exchange rates last year and recorded another loss of $166 million in the year ended last March. [New York Times] Chaim Herzog, Israel's chief delegate to the United Nations, does not take seriously reports that Egypt, Syria and Jordan would sign peace treaties with Israel as part of an overall Middle East peace settlement. The reports were merely "for Western consumption," he said at a news conference before addressing a meeting of the Hadassah in New York. He also said that United States officials "delude themselves" if they believe a settlement of the Arab-Israel conflict would bring peace to the Middle East. [New York Times]