News stories from Friday November 14, 1980

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

A discount rate increase of a full percentage point, to 12 percent, was announced by the Federal Reserve Board and will be effective Monday. The discount rate is the interest rate the Federal Reserve charges on loans to financial institutions. The board's action indicated that still higher interest rates might be in view. [New York Times] A military budget for 1982 that could authorize up to $200 billion will be proposed to Congress in January by the Carter administration, a much larger increase than planned only eight months ago. Meanwhile, Secretary of Defense Harold Brown reversed his plans and asked the Senate Appropriations Committee to increase, rather than decrease, the 1981 military budget by $1 billion. [New York Times] Ronald Reagan announced his first administration appointments and key transition officials said work would begin Monday to select, as directed by the President-elect, no fewer than three names to be considered for each cabinet post. Mr. Reagan announced, as expected, that his White House chief of staff would be James Baker, and that Ed Meese would be counselor to the President with cabinet rank. [New York Times] The aims of the Justice Department under the Reagan administration, the President-elect's advisers suggest, would be aid to victims of crime, renewed emphasis on combating street crime, strong support of the F.B.I., and a cautious approach to civil rights enforcement. [New York Times] An evangelist's inauguration party for Ronald Reagan is being investigated by a federal grand jury for possible violation of mail-fraud laws. James Johnson, a minister and a former aide to the President-elect, sent mail solicitations to 40,000 people asking them to buy $130 tickets to a "Presidential Inaugural Celebration With Love," indicating that Mr. Reagan and George Bush, the Vice President-elect, would attend. This was denied by the official inauguration committee. [New York Times] John Murphy's lawyer charged, in an attack on the prosecution, that two months after the Representative from Staten Island was alleged to have joined in taking a $50,000 bribe from an Abscam undercover agent, the agent knew he "didn't have a case against Murphy" and attempted to build one by getting him to say incriminating things at another meeting. [New York Times] Robert Garwood's court-martial began at Camp Leleune, the Marine base in North Carolina. Private Garwood returned to the United States last year, four years after the fall of Saigon. The last American serviceman back from Vietnam, he said he had been a prisoner of war all that time and that he had been brutalized. The government says that he was a deserter and collaborator with the enemy. [New York Times] Twenty-four million acres of public land in the West have been designated for study as potential wilderness areas by the Interior Department's Bureau of Land Management. At the same time, the bureau released 150 million acres from further consideration as wilderness areas. [New York Times] Poland stopped almost all food exports in an effort to counteract domestic shortages that have recently worsened. The export of foodstuffs from a country that had been a major supplier of grain to Britain, Scandinavia and elsewhere "has now practically fallen to nil," according to Jan Zaleski, the Minister of Food Industry. As winter approaches, grocery stores are short of basic commodities -- eggs, milk, flour, butter, sugar and potatoes. [New York Times] A Soviet-American compromise in Madrid saved the East-West conference there on detente and human rights under the Helsinki accords from collapse. Both sides accepted an agenda fashioned by the foreign ministers of four other nations, breaking a procedural deadlock and ending a Soviet filibuster. [New York Times] A Swiss court froze millions of dollars in proceeds of an auction of jewelry in Geneva, which the Iranian government said belonged to the Empress Farah, the Shah's widow. The court order was obtained by Swiss lawyers on behalf of Teheran, which says 15 pieces of jewelry were put up for sale by the deposed Empress. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 986.35 (+3.93, +0.40%)
S&P Composite: 137.15 (+0.66, +0.48%)
Arms Index: 0.77

	Issues	Volume*
Advances	869	39.86
Declines	696	24.45
Unchanged	383	7.32
Total Volume		71.63

* 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*
November 13, 1980	982.42	136.49	69.33
November 12, 1980	964.93	134.59	58.51
November 11, 1980	944.03	131.26	41.52
November 10, 1980	933.79	129.48	35.72
November 7, 1980	932.42	129.18	40.06
November 6, 1980	935.41	128.91	48.89
November 5, 1980	953.16	131.33	84.29
November 3, 1980	937.20	129.04	36.62
October 31, 1980	924.29	127.47	40.11
October 30, 1980	917.75	126.29	39.06