News stories from Thursday June 14, 1973
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- President Nixon's deputy campaign director, Jeb Magruder, admitted his guilt in planning the Watergate break-in and implicated men closer to the President than himself. Magruder testified before the Senate Watergate committee with limited immunity. He admitted his full involvement in the Watergate scandal but stated that the President had no knowledge of Watergate. Magruder told the committee about meetings with John Mitchell to approve G. Gordon Liddy's break-in plan, discuss the money that was to be used, and create a cover-up story.
Magruder gave the reason for the Watergate break-in. He noted that others committed illegal acts in defense of their beliefs; he saw Rev. William Sloan Coffin burning draft cards and staging mass demonstrations for his ideals. Magruder thought his own ideals were much higher, and his illegal acts would lead to a legal end -- the re-election of the President.
Magruder testified that all Watergate-related plans went to H.R. Haldeman's aide, Gordon Strachan, to be summarized for Haldeman. Committee chairman Sam Ervin pointed out that if the plans were carried to Haldeman's aide, then Haldeman must have known of them; Magruder replied that Haldeman may have decided not to believe what he read. Ervin stated that if Haldeman and President Nixon were so close, Haldeman would surely have told President about the plans; Magruder had no answer.
The Senate Watergate committee has now learned about the roles played by conspirators from John Mitchell on down, now they want to find out what parts were played by Mitchell and those above him in the Watergate scandal.
[CBS] - The Associated Press reported that former Haldeman assistant Gordon Strachan is ready to testify. It has been established that White House chief of staff Haldeman knew about the Watergate cover-up. [CBS]
- The White House announced that a copy of campaign contribution records is in the files of President Nixon's personal secretary, Rosemary Woods, who was recently promoted to be the President's executive assistant. Press secretary Jerry Warren made the announcement. Campaign finance director Maurice Stans testified that those receipts had been destroyed. [CBS]
- Former aide Bryce Harlow is returning to the White House as a presidential counselor with cabinet rank. [CBS]
- Former national security adviser Morton Halperin is suing Henry Kissinger and other officials for damages for wiretapping his phone. Halperin's phone was tapped for two years. [CBS]
- President Nixon's economic proposals are being called "Phase 3 ½". There will be a 60-day freeze on retail prices including food. Wages, interest rates, dividends, rents and farm products remain under voluntary controls. The new proposals will affect farmers and consumers. Farmers who raise livestock are skeptical about government intervention and some are cutting back, an action which may reduce food supplies. Grocery stores are likely to raise food prices (if permitted) after the 60-day freeze. [CBS]
- Congress' opinion of the price freeze was generally favorable; two economists, Paul Samuelson and Elliot Janeway, criticized the freeze. Samuelson said that each freeze becomes weaker and weaker because of the indecisiveness of the action. Janeway stated that the U.S. could control its economy and raise the value of the dollar by using the power of agriculture -- let foreign countries come and buy grain and pay cash. [CBS]
- President Nixon in a national address asked Congress for the authority to impose export controls on agricultural products which are now in such shortage.
European currency traders reacted to "Phase 3 ½". A spokesman for the London National Westminster Bank stated that the new controls are insufficient. At the French gold market, gold rose moderately and the dollar fell. Before Nixon's address, the dollar rallied a bit in West Germany, but fell after his speech. Europe still has little confidence in the dollar.
[CBS] - Japan is the biggest market for U.S. agricultural exports; Japan was not pleased with President Nixon's announcement. Japan would be greatly affected by export controls on agricultural products. Japan gets many of its basic food items from the United States. A reduction in soybeans from America could cause a crisis in Japan. The Japanese see in the proposed controls Washington's failure to understand Japanese problems. [CBS]
- President Nixon's new policy doesn't solve long-range economic problems, and just delays real decisions that will have to be made at a time of greater risk. The President took Treasury Secretary Shultz's advice on Phase III when he should have listened to Melvin Laird and John Connally. Food prices, interest rates and rents are now frozen at their highest levels, giving bankers and landlords large profits. There may be a recession on top of inflation if no workable ideas are found soon. [CBS]
- U.S. bombing in Cambodia continued for the 100th day in a row. The Senate voted 67-15 to stop all bombing in Indochina. A few hours before that, Henry Kissinger tried to persuade Congress not to stop the bombing. Under the new Vietnam cease-fire plan, Cambodian bombing can continue indefinitely. Senator Hugh Scott said that he will give the new cease-fire two weeks before determining whether something more must be done. [CBS]
- The Federal Trade Commission criticized the trading post system on the Navajo reservation in Arizona and New Mexico; many posts are full of abuses. Most Navajos live in poverty, disease and illiteracy. The trading posts reportedly charge illegal prices, overcharge, sell poor quality food and have unsanitary conditions. Traders also intercept welfare checks. Charles Tansey, Secretary of the Traders Association, admitted the violations but said that not all of them were committed by any one trading post. [CBS]
- The manufacturers of 10 pain relievers said they are not guilty of false advertising, as charged by the FTC. The FTC wants 25% of their new ads devoted to confessing mistakes in prior ads. [CBS]
- Two cable cars are stalled in the Sandia Mountains near Albuquerque, New Mexico, stranding 41 people in mid-air. Some have been rescued, others are waiting for Army helicopters to rescue them. Among those trapped are a baby and its parents. Officials say there is no danger of the cars falling. [CBS]
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Stock Market Report
Dow Jones Industrial Average: 902.92 (-12.57, -1.37%)
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* |
| June 13, 1973 | 915.49 | 107.60 | 15.70 |
| June 12, 1973 | 927.00 | 108.29 | 13.84 |
| June 11, 1973 | 915.11 | 106.70 | 9.94 |
| June 8, 1973 | 920.00 | 107.03 | 14.05 |
| June 7, 1973 | 909.62 | 105.84 | 14.16 |
| June 6, 1973 | 898.18 | 104.31 | 13.08 |
| June 5, 1973 | 900.81 | 104.62 | 14.08 |
| June 4, 1973 | 885.91 | 102.97 | 11.23 |
| June 1, 1973 | 893.96 | 103.93 | 10.41 |
| May 31, 1973 | 901.41 | 104.95 | 12.19 |