News stories from Thursday January 15, 1981

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

The way for release of the hostages may have been cleared by Iran's latest formal response to the Carter administration's efforts to resolve the 14-month crisis before leaving office Tuesday. Publicly, the administration was unwilling to predict a breakthrough, but one official said the message indicated that a speedy settlement was possible. [New York Times] A major potential hostage problem remained unresolved despite intense negotiations between American banks and Iran's central bank over frozen Iranian funds. It was unclear whether failure to resolve the dispute would hold up the hostages' release. [New York Times] A demand for Iran's frozen assets was pressed by the chief Iranian negotiator in the talks over the release of the 52 Americans. Hours after Ayatollah Khomeini apparently approved the latest efforts to resolve the crisis, the negotiator hinted that unless Washington deposited the unencumbered assets in Algerian banks by the close of business tomorrow Iran might break off the talks. He also said that the money must be in the Algerian banks before the hostages are freed. [New York Times] Large increases in military spending and reductions in many non-defense programs were proposed in President Carter's last budget request to Congress. Mr. Carter offered no new proposals in submitting a budget that projects spending of $739.3 billion and a deficit of $27.5 billion for the fiscal year that starts next Oct. 1. [New York Times] The military budget proposed by President Carter for the fiscal year 1982 was designed to provide what Defense Secretary Harold Brown called a "steady and sustained" expansion in defense spending averaging 5 percent a year over the next five years. [New York Times] The proposed budget was assailed by President-elect Ronald Reagan's top economic advisers as "a very political document." They said that the propos-als would have to be revised "from top to bottom" and repeated that the Reagan administration would propose emergency measures to cut both spending and taxes. [New York Times] Upgraded strategic weapons systems will be considered by the Reagan administration, according to Caspar Weinberger, the Secretary of Defense-designate. Under discussion, he said in an interview, are a possible new anti-ballistics missile defense system and a new mobile offense missile system that would be based at sea rather than on land. [New York Times] An allegation against a cabinet choice prompted a Senate committee to postpone a vote on his confirmation. The allegation was reported by Senate sources, who 'said that a convicted criminal now under F.B.I. protection had told investigators that Raymond Donovan, the nominee for Secretary of Labor, made payments to him to buy labor peace for Mr. Donovan's company in Secaucus, N.J. [New York Times] Bill Brock was appointed special trade representative by President-elect Reagan. Sources in the transition office said it was uncertain whether the post chosen for Mr. Brock, now the Republican national chairman, would continue as a cabinet-level rank throughout Mr. Reagan's term. [New York Times] Massachusetts's severe gas shortage worsened. All schools in Boston that are heated with natural gas were ordered closed today and all non-residential gas customers in the Boston area were ordered to set thermostats no higher than 55 degrees. [New York Times] Arson caused the fatal Westchester fire, Carl Vergari, the county's District Attorney, announced. He said that the blaze that killed 26 people at a Stouffer's Inn conference center in the Town of Harrison on Dec. 4 was deliberately set. He added that a "highly flammable and volatile liquid" had been ignited on carpeting outside rooms where scores of business executives from several companies were meeting. A source said that the inquiry might be focusing on a Stouffer's employee. [New York Times] Emanuel Celler died at his home in Brooklyn at the age of 92. He had served in the House of Representatives for half a century and was one of the most influential New York members in history when he was defeated in an upset by Elizabeth Holtzman in the 1972 Democratic primary. [New York Times] Risks of "secondhand" smoking were found in a major 14-year study by cancer researchers in Japan. The results showed that wives who did not smoke but were exposed to their husband's cigarette smoke developed lung cancer at a much higher rate than non-smoking wives of non-smoking husbands. [New York Times] Alleged improprieties in U.N. bodies were cited in an internal report. It urged an inquiry into charges that high officials in at least two departments had been involved in potential or actual abuse of power, apparent favoritism and lax handling of funds. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 969.97 (+3.50, +0.36%)
S&P Composite: 134.22 (+0.75, +0.56%)
Arms Index: 0.72

	Issues	Volume*
Advances	789	21.56
Declines	691	13.52
Unchanged	423	4.56
Total Volume		39.64

* 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*
January 14, 1981	966.47	133.47	41.39
January 13, 1981	965.10	133.29	40.89
January 12, 1981	968.77	133.52	48.75
January 9, 1981	968.69	133.48	50.18
January 8, 1981	965.70	133.06	55.35
January 7, 1981	980.89	135.08	92.88
January 6, 1981	1004.69	138.12	67.40
January 5, 1981	992.66	137.97	58.71
January 2, 1981	972.78	136.34	28.86
December 31, 1980	963.99	135.76	41.21