What was going on when I was born?

After 11 years of legal arguments, New York City and the American Civil Liberties Union have settled a lawsuit with an agreement to place children in foster-care agencies on a first come, first served basis, regardless of their race or religion. The settlement also allows children whose parents express a religious preference to be placed in homes observing that religion. If no such placement is available and the situation is not deemed an emergency, the child will probably be put on a waiting list. It provides, too, for an outside consultant to evaluate city foster-care agencies, ranking them by the quality of the services they offer. The findings are to be used to insure that foster children have equal access to the highest- quality care available.

An article in Business Day yesterday about Castle & Cooke Inc. misstated the number of shares outstanding and their total worth, based on Friday's closing price. There are 28.2 million, worth $507.6 million.

Amin Gemayel opened the second Lebanese reconciliation conference in five months, appealing for an end to ''nine years of insane and continuous war.'' Lebanon's eight senior Moslem and Christian leaders gathered in a conference room in Lausanne, Switzerland, to hear President Gemayel deliver an opening address in subdued and almost sad tones. (Page A1, Columns 3-4.) The commander of Lebanon's Army has offered his resignation to President Gemayel as a concession to anti- Government factions, according to military officials in Beirut. They said the move could ultimately lead to a Lebanese Army closely aligned with Syria's foreign policy and security objectives. (A8:1-3.)

Four of the five Democratic Presidential aspirants campaigned in the South today as nine states across the nation prepared for a potentially crucial set of primary elections and caucuses on Tuesday. While Senator Gary Hart of Colorado answered fresh criticism of his campaign from Sunday's debate, former Vice President Walter F. Mondale said that ''this incredible momentum'' for Mr. Hart was ebbing. He vowed to continue his fight for the nomination ''clear through California if necessary.'' Mr. Mondale challenged Mr. Hart to a debate before each of the remaining primaries, but the Senator declined. ''It would be the height of arrogance of me to accept'' as long as other candidates remained in the race, Mr. Hart said. He said he would debate Mr. Mondale if the others were also invited.

TUESDAY, MARCH 13, 1984 The Economy American industry is planning to spend $343.6 billion this year for modernization and equipment, the Commerce Department said, up 13.6 percent from the 1983 total. The chief economist of the National Association of Manufacturers described the data as ''signs of a full-scale capital spending boom.'' (Page D1.) A Cabinet-level split over merger policy widened when Attorney General William French Smith strongly defended the Justice Department's opposition to an LTV-Republic Steel merger. His statement was issued the day after Commerce Secretary Malcolm Baldrige, in a newspaper article, said the ban was wrong. Mr. Smith replied that his department would decide antitrust issues on their merits, ''without regard to how popular they may be.'' (A1.)

Businesses in the United States plan to spend a record $343.6 billion on modernization and expansion this year, up 13.6 percent from 1983, the Commerce Department said today. The Administration welcomed the survey as further proof of a ''thriving economy,'' and one private analyst said the nation appeared headed for a ''full-scale capital spending boom.'' After adjustment for inflation, the rise in capital spending expected this year is 12 percent - after three years of declines, including a 3.8 percent drop last year - and would be the biggest increase since a 13.4 percent inflation-adjusted gain in 1966.

IN the grasslands of Kenya where a herd of wildebeests browse, a team of four lions goes into action. Two of the big cats climb atop nearby mounds and remain motionless where the antelopes can see them. The wildebeests raise their heads in alarm, but when they see the lions in repose they feel safe and resume browsing. Meanwhile, a third lion slinks along a ditch toward the wildebeests, keeping out of their sight. The fourth suddenly appears in back of the wildebeests and chases them toward the ditch. The lion waiting in ambush leaps up, seizes a passing wildebeest and kills it. The lion is joined by its three companions, who then leisurely consume their prey.

A chart in Metropolitan Report on March 1 with an article about a citywide drop in reported felonies during 1983 - using information obtained from the Police Department - failed to account for the effect of boundary changes in 10 precincts. For those - the 19th, 23d, 25th, 26th, 28th, 30th, 32d, 34th, 120th and 122d - crime rates could not be compared with those of 1982. Overall, the city registered a 9 percent decrease in reported felonies during 1983, a figure that remains valid.

The United States and its industrial allies are moving toward an agreement on a new trade pact intended to reduce protectionism now that their economies are starting to recover from the recession, according to Western diplomats involved in the negotiations. At the annual ministerial meeting in May of the Organization for Economic Cooperation and Development, these countries are expected to agree to accelerate tariff cuts that they are already committed to under the so- called Tokyo Round agreement of 1979, these sources said. Two Added Goals In addition, they hope to roll back most of the trade restrictions that all Western nations introduced at the depth of the recession, although details of this commitment are proving more difficult to agree on. At the May meeting, these countries also hope to announce steps to help the poorest countries increase their exports to industrial nations.

President Amin Gemayel of Lebanon opened his country's second reconciliation conference in five months today, appealing for an end to ''nine years of insane and continuous war.'' Lebanon's eight senior Moslem and Christian statesmen gathered at the Beau Rivage Hotel to hear President Gemayel give an opening address in subdued and almost sad tones. (In Beirut, military officials said the commander of the Lebanese Army, Gen. Ibrahim Tannous, had offered his resignation to President Gemayel as a concession to anti-Government factions. Page A8.)

The American Telephone and Telegraph Company plans to extend discounts on long-distance calls nationwide this year, company officials said yesterday. The move could increase the pressure on A.T.& T.'s smaller long-distance competitors. ''I think it is fair to say that you can expect to see such a proposal by the end of the year,'' Patricia E. Wainright, a spokesman for A.T.& T. Communications, the long-distance arm of the company, said yesterday.

It was 9:30 A.M. last Wednesday, with bond trading just starting to percolate, and the stock and options markets a half-hour from opening. The mood was already black. Stock prices had dropped the previous day, and long-term bonds had hit a seven-month low. Then the report labeled ''Volcker Says Economy Still Very Strong'' moved on the Dow Jones News Service ticker, which Wall Street watches religiously. Paul A. Volcker, chairman of the Federal Reserve, which controls the nation's money supply, was quoted as saying the economy looked ''very strong in a number of directions.'' What happened next could serve as a case study of how news events have fed the markets' volatility.