News stories from Wednesday September 21, 1977

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

Bert Lance resigned as budget director after weeks of controversy over his past business and banking practices, and President Carter said he accepted his friend's decision with "regret and sorrow." The President said Mr. Lance had "exonerated himself completely" of all charges and denied any mistake of judgment in appointing him. However, he said Mr. Lance was right in stepping aside because it would be difficult for him to devote full time to the responsibilities of the office, and because he might need to turn his attention to his personal financial difficulties. [New York Times] Sidney Gottlieb, who supervised C.I.A. drug tests, said that the agency carried out such tests on unsuspecting people with the cooperation of the old Federal Bureau of Narcotics, which wanted to know if potential narcotics informants could be made to talk. This testimony by the man who supervised the tests for the Central Intelligence Agency contradicted denials by former bureau officials that they knew anything about this. [New York Times] Nassau County [New York] was accused of discriminating against blacks, Hispanic people and women in the county police department in a suit brought by the United States Attorney General. The county police commissioner, when told of the suit in federal court in Brooklyn, denied any discrimination and called the Justice Department's call for goals and timetables a euphemism for quotas. He urged that civil service lists be followed. [New York Times] Trade with Arab countries would still he possible under new regulations to enforce the new federal anti-boycott law outlined by the Department of Commerce. Several officials close to the proposals, which would take effect Jan 18, said they would continue to give American business considerable leeway in carrying on such trade. No immediate comment came from Jewish groups that helped formulate the law. Several experts from those groups said there were "loopholes" that would allow many transactions with Arab countries to go on as before. [New York Times] New York City's budget deficit will be at least $350 million next year, four times greater than Mayor Beame had projected. Fiscal officials who disclosed the gap said they hoped an expanding economy would generate additional revenue to offset it. [New York Times] H. Johannes Witteveen, head of the International Monetary Fund since 1973, said he would not seek another five-year term as managing director in 1978. The 56-year-old former Dutch Finance Minister told a closed meeting of the fund's executive board that he was retiring for personal reasons. [New York Times] Stock prices declined sharply across the board, with losers on the New York Stock Exchange outnumbering winners 2-to-1. Dow Jones industrials dropped 10.82 points to 840.96, the lowest closing level in 21 months. One analyst attributed the selloff to an investor vote of no-confidence in equities, citing uncertainties about the provisions of the Carter tax bill and administration failure to get its energy program through Congress. [New York Times] The theory that the universe is infinite and destined to expand forever is being challenged by two studies reviving the possibility that it is finite and predestined to collapse. The new observations taking separate but related approaches suggest that expansion has slowed enough to bring about a falling back together of all galaxies and stars in billions of years. [New York Times] Foreign Minister Moshe Dayan of Israel has told members of the House International Relations Committee in Washington that his country would be ready to let the United States establish a naval base for the Sixth Fleet in Haifa. He reportedly said he did not want American troops involved in a peacekeeping role as part of a peace settlement with the Arabs. Administration officials said the idea of a naval base had been under study for some time but was not under active consideration, although it might be considered as part of an overall settlement. [New York Times] Restrictions on nuclear exports, tightening guidelines on transfers of technology to curb the spread of atomic weapons, were agreed to in London by representatives of 15 countries, according to United States officials in Washington. If the agreement is carried out, the effect would be to prevent future sales of advanced nuclear technology without adequate safeguards and controls, This has been a primary American aim since India's detonation of an atomic device in March 1974. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 840.96 (-10.82, -1.27%)
S&P Composite: 95.10 (-0.79, -0.82%)
Arms Index: 1.47

	Issues	Volume*
Advances	461	4.63
Declines	985	14.50
Unchanged	458	3.07
Total Volume		22.20

* 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 20, 1977	851.78	95.89	19.03
September 19, 1977	851.52	95.85	16.89
September 16, 1977	856.81	96.48	18.34
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