June 10, 1969

confirmed by Sen

banks across nation raise prime lending rate full percentage point to record 8.5%, biggest single rise ever, amid air of mounting crisis in financial mkts; cite rise in interest rates on commercial paper and long-term corp bonds over 7.5% and fear that banking system will not be able to handle massive credit demands when corp qrly tax payments come due June 16 without massive aid from Fed Reserve system; wide speculation that Reserve will be forced to weigh discount rate rise noted; Congressmen and Adm officials reptdly are 'furious' over rise; Patman sees 'conspiracy' among banks; demands Adm start antitrust probe; Kennedy reptdly tells HR com that he is surprised by rise and that it came despite talks he had with bankers asking them not to raise rate; holds move underscores need for extension of income tax surcharge; Congressmen recall that surcharge was originally enacted to keep interest rates down; number of banks stress move will have no effect on charges on loans to individuals; move is expected to add to upward pressure on prices

Natl Comm on Causes and Prevention of Violence warns against legis that would punish either students or insts for campus disorders, statement

Nguyen Van Thieu returns to Saigon; repts to S Vietnam in televised news conf; calls on press to heighten morale of nation and armed forces; says Nixon action on troops is replacement, not withdrawal; illus

univ, acting on decision of Com of 15, student-faculty disciplinary com, ousts 16 students who took part in Apr bldg seizure for period up to 2 yrs and in 3 cases where students 'mishandled' deans bars students return without 2/3 vote of faculty; also places 99 other students under warning but imposes no direct sanctions; Arts and Sciences Faculty overwhelmingly passes interim statement outlining gen standards of behavior for students, faculty and admrs; details; faculty also votes to phase out campus ROTC units by June, '71, subject to Harvard Corp approval