News stories from Monday January 30, 1978

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

President Carter defended his involvement in the dismissal of David Marston, a Republican United States Attorney, as "a routine matter" compatible with his campaign promise to remove politics from the Department of Justice. "If it occurred now, I would do the same," he said at his news conference, referring to his request to Attorney General Griffin Bell to "expedite" the removal of Mr. Marston as the chief federal prosecutor in Philadelphia. [New York Times] The largest trade deficit in United States history was reported by the government. The deficit in 1977 was $26.7 billion, more than four times that in 1976 and the second highest since 1972, when the country bought $6.4 billion more in goods than it sold. Continuing large imports of oil were chiefly responsible for last year's deficit, the Commerce Department said. [New York Times] The administration's tax program was questioned by members of the House Ways and Means Committee, but there were no indications of strong opposition. The hearing, at which Treasury Secretary Michael Blumenthal testified, was mainly concerned with the possible economic effect of the administration's proposal to allow deductions for only half the cost of expense account meals and to completely disallow deductions for theater and sporting events tickets, club dues, yachts and hunting lodges, all used in business-related entertainment. [New York Times] Stock prices rallied strongly on the Commerce Department report that the United States trade deficit last month declined slightly from November. The decline also strengthened the dollar in foreign exchange dealings, giving investors further encouragement. The Dow Jones industrial average rose 8.32 points to 772.44, its first advance on a Monday since the start of the new year. The market was ready for almost any excuse to rally, analysts said. [New York Times] A delay in selling oil and gas exploration leases on the Georges Bank off the Massachusetts coast was urged by federal Judge Levin Campbell. His decision will be appealed tomorrow to the Supreme Court, according to Kenneth Nasif, an assistant United States Attorney. "We're going to ask for an expedited hearing, before one of the Justices," he said, conceding that the sale cannot take place tomorrow. [New York Times] The first comprehensive revision of federal criminal law was approved by the Senate, 72 to 15, after eight days of floor debate. The major innovations provide for fixed rather than indeterminate prison terms and permit parole only in "an exceptional situation." The recodification completes 12 years of efforts to revise the criminal law that failed in past Congresses over civil liberties disputes. Senator Edward Kennedy, one of the bill's sponsors, said that the bill, on balance, was a major improvement from the viewpoint of civil liberties. But the American Civil Liberties Union disagreed, saying that the bill amounted to "a dangerous compromise of civil liberties" in the areas of speech assembly and preventive detention. [New York Times] President Carter proposed that the Soviet Union join the United States in an agreement banning nuclear material in space satellites. At his news conference, Mr. Carter said, "I would favor at this moment an agreement with the Soviets to prohibit earth-orbiting satellites with atomic radiation materials in them." He made the comment when asked about safeguards against possible nuclear contamination following the incident involving a falling Soviet satellite in northern Canada.A piece of a Soviet spy satellite has been found in Northern Canada, Canadian and American scientists reported. They said that it was "moderately radioactive" but that it was not part of the nuclear reactor that powered the satellite's radar unit. Soviet authorities have confirmed that the vehicle, believed to have been used to track United States naval vessels, carried about 100 pounds of enriched uranium. [New York Times] The United States may help Morocco fight Algerian-backed guerrillas by selling it airplanes and helicopters. The administration also disclosed that the United States was considering the rewriting of a 1960 military agreement with Morocco that had barred it from moving American arms beyond its borders. [New York Times] Israel's suggestions for a declaration of principles for a comprehensive Israeli-Arab settlement are to be given to Egypt tomorrow by Assistant Secretary of State Alfred Atherton. He will present the proposals to Egypt's Foreign Minister, Mohammed Ibrahim Kamel, and then to President Anwar Sadat. Israeli officials said the draft declaration contained some accommodation in Israel's position, but gave no further details. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 772.44 (+8.32, +1.09%)
S&P Composite: 89.34 (+0.76, +0.86%)
Arms Index: 0.78

	Issues	Volume*
Advances	873	10.03
Declines	506	4.55
Unchanged	465	2.82
Total Volume		17.40

* 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 27, 1978	764.12	88.58	17.60
January 26, 1978	763.34	88.58	19.60
January 25, 1978	772.44	89.39	18.69
January 24, 1978	771.57	89.25	18.69
January 23, 1978	770.70	89.24	19.38
January 20, 1978	776.94	89.89	7.58
January 19, 1978	778.67	90.09	21.50
January 18, 1978	786.30	90.56	21.39
January 17, 1978	779.02	89.88	19.36
January 16, 1978	771.74	89.43	18.76