News stories from Friday September 16, 1977

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

Bert Lance was confronted with evidence that, contrary to his previous assertions, a federal bank examiner had said as early as 1971 that his personal checking account overdrafts violated banking laws limiting loans to bank officers. The disclosure was made on the second day of a Senate hearing by Senator Abraham Ribicoff, head of the Senate Governmental Affairs Committee.Mr. Lance did not retreat in a substantial way at today's session from the defense he carefully constructed and forcefully presented in his 49-page statement yesterday. He was confronted by senators, mainly Republicans, who challenged some of the statements he made Thursday and who drew markedly different conclusions from the same set of facts. [New York Times] Industrial production declined in August for the first time in seven months and it may be another indication that the economy is slowing down. The Federal Reserve Board said the output of factories, mines and utilities fell five-tenths of 1 percent largely because auto manufacturing and power production had declined. The Commerce Department, meanwhile, reported that personal income increased by $8 billion in August, a relatively modest gain. Factory payrolls declined by $500 million, and payrolls of commodity-producing industries were off by $1.5 billion. [New York Times] The domestic oil tax proposed by the administration -- the kingpin of the President's energy program -- is strongly opposed by a coalition of liberal senators, consumer advocates and labor unions. Their hostility may scuttle the entire program. On Thursday, the administration privately agreed, in response to demands by Senator Russell Long, chairman of the Senate Finance Committee, to divert some or all the tax revenues to energy development instead of rebating them to consumers as had been originally planned. [New York Times] Stock prices declined and the Dow Jones industrial average again almost hit the 20-month low of 854.12 of Aug. 25. Following small gains in the three preceding sessions, the average fell 3.98 points to 856.81, This, coupled with the market decline on Monday, resulted in a net loss of slightly less than a point for the week. Moves by the Federal Reserve to raise short-term interest rates have been the main market depressant in recent weeks. [New York Times] Angered by the Episcopal Church's decision to ordain women priests, disaffected members seceded and pledged themselves to a new provisional body called the Anglican Church in North America. An interim charter for the proposed church was received jubilantly by 1,700 dissidents at the climax of a meeting in St. Louis. [New York Times] Mayor Beame of New York City said he was backing Edward Koch in Monday's Democratic mayoral primary runoff, while aides to Bella Abzug said she was preparing to endorse Mario Cuomo. Mr. Beame said he "found qualities in both men that would be of value," but had chosen Mr. Koch because he had been "tested in the crucible of the elective process for many years." [New York Times] Maria Callas died of a heart attack at her home in Paris, She was 53 years old and had been one of the most popular and dramatic opera stars of her time. Friends said that she was preparing to write an autobiography for a New York publisher. [New York Times] The United States was warned by Prime Minister John Vorster of South Africa that he would resist its "blatant meddling" in South African affairs. In an interview, he said that his government was bracing to withstand any economic sanctions or oil boycott that might be imposed as a consequence of the dispute over Rhodesia's future or opposition to his country's policy of apartheid. Mr. Vorster insisted that he would not, despite American pressure, compel Prime Minister Ian Smith of Rhodesia to accept the British-American plan for the transfer of the government to the black majority. [New York Times] South Africans were startled by a statement by Justice Minister James Kruger that he had never said that Steven Biko, a young black leader held in police detention, had starved himself to death. Mr. Kruger, defying demands for his resignation from opposition politicians, told the South African Press Association that when he announced Mr. Biko's death earlier this week he referred to the fact that the black leader had been refusing food and water. "I never suggested at any stage that Biko had starved himself to death," he said. [New York Times] There was no truth, United States and Panamanian officials said, in reports that there had been eavesdropping and blackmail during the recent Panama Canal treaty talks. The Senate Select Committee on Intelligence, however, discussed the allegations, reported by CBS, in a closed session. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 856.81 (-3.98, -0.46%)
S&P Composite: 96.48 (-0.32, -0.33%)
Arms Index: 1.26

	Issues	Volume*
Advances	664	6.46
Declines	720	8.80
Unchanged	480	3.08
Total Volume		18.34

* 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*
September 15, 1977	860.79	96.80	18.23
September 14, 1977	858.71	96.55	17.33
September 13, 1977	854.56	96.09	14.90
September 12, 1977	854.38	96.03	18.70
September 9, 1977	857.07	96.37	18.10
September 8, 1977	868.16	97.28	18.29
September 7, 1977	876.39	98.01	18.07
September 6, 1977	873.27	97.71	16.13
September 2, 1977	872.31	97.45	15.62
September 1, 1977	864.86	96.83	18.82