February 24, 1973

central banks of W Ger, France, Belgium, Netherlands, Sweden and Switzerland support dollar on Feb 23 to halt selling wave that threatens to reach panic proportions in morning hrs as price of gold soars at one point to $95 an ounce; dollar's rate recovers in afternoon in less hectic dealings as price of gold plummets $10 an ounce to close at $85; vol of gold dealing on Feb 22 and 23 is described by bullion traders in London, Zurich and Switzerland as largest ever seen; is estimated at between $50-million and $100-million in major Eur centers on both days; some of panic is seen as dollar plunges to new lows and gold is taken at almost any price; W Eur nations have served notice that they will float their currencies should dollar continue to weaken; members of EEC are reptdly studying possibility of joint float in which their currencies would fluctuate as single bloc against dollar; many observers are doubtful that this can be accomplished because it presupposes greater monetary and econ cooperation and greater harmony of econ policies than now exists; root of trouble is said to be monetary system itself, which has permitted conditions of disequilibrium in internatl payments to continue too long; repts of banks in several centers absolutely refusing to take dollars until 'dust settles' are said to be widespread; W Ger Bundesbank reptdly acquires less than $10-million during intervention

museum officials, archeologists and scholars throughout US on Feb 23 comment on $1-million paid by Met Museum for krater; while some feel price was 'ridiculous' and will encourage looting in future, others feel that cost should not be paramount consideration where invaluable work of art is concerned; events concerning purchase of vase and subsequent facts revealed by NY Times investigation recounted; crowds have been reptd going to museum just to see controversial vase

Israel on Feb 23 returns to Egypt bodies of 100 victims; transfer of bodies across Suez Canal described; illus; bodies of jetliner's French crew members will be flown to France from Israel

AFL-CIO pres Meany says on Feb 23 that he would prefer no guidelines at all in Phase 3 econ stabilization program but that if there is a wage limit, it should allow increases of 7.5% rather than current 5.5%; makes statement in news conf, Bal Harbour, Fla, shortly before labor-mgt advisory com of Cost of Living Council meets there; suggests excess profits tax, saying it would shift some of record profits back into public purse to bring equity to controls program and assure labor cooperation; is careful to avoid threatening a labor walkout if such a tax is not adopted; does warn that labor will push wages up unless prices come down; Cost of Living Council Dir Dunlop, after Bal Harbour meeting, refuses to comment on what was discussed; says he will make statement later; AFL-CIO exec council issues series of statements on econ; calls growth unbalanced and future clouded; suggests various changes in policy, including 'inequities that persist in econ stabilization program'

Fed Reserve Bd approves discount rate increases on Feb 23 from 5% to 5 1/2% at 4 of 12 Reserve Banks; says action is taken in recognition of recent rise in short-term interest rates; economists applaud action