December 10, 1975

news analysis notes that low USSR grain harvest, estimated at 137-million tons, raises questions about USSR's ability to feed people adequately; severe climatic problems and inefficiencies of rigid and cumbersome centrally planned agr system are seen as reasons for low yield (L)

Pres Ford signs into law $2.3-billion loan authorization bill to save NYC from bankruptcy; White House spokesman says legis was signed without ceremony to expedite city's race against default, but speculation is that Pres seeks no additional publicity, which would alienate conservatives; Repr Barber Conable says Ford apparently seeks no close identification with measure; says bill has wrongly been interpreted as Pres reversal; HR, 379-29, approves revision of Munic Bankruptcy Law, enabling NYC and other, cities to petition for bankruptcy without consent of creditors, but rejects, 264-145, amendment by Repr M Caldwell Butler to make legis applicable only to nation's 6 largest cities; legis is opposed by NY Reprs Barbara Holtzman and Bella Abzug; Holtzmann says it fails to provide ct-ordered Federally-guaranteed ctfs of indebtedness to assure maintenance of essential services; legis revd; Reprs Herman Badillo, Stephen J Solarz and Don Edwards comment (L)

NYS Gov Hugh L Carey proposes eliminating criminal penalties for possessing small amounts of marijuana (S)

Gov Carey tells NYS legislators that state is at edge of abyss; calls for $597-million cut in state spending, and $555-million in permanent tax increases on corps, banks, gasoline, autos and various consumer items; says these measures, combined with $320-million in temporary new revenues (including emergency corp tax surcharge) would close current and projected budget gaps totaling $1.524-billion and would give state access to credit mkts; Repub legis leaders denounce Carey's program; liken it to $800-million tax plan he offered in Jan; say they will submit their own plan; Carey stresses need for tax increases to become effective Jan 1; says delay until Apr would mean dismissing 10,000 state employes; state budget officials say Carey's plan avoids across-the-board increases in sales tax or personal income tax; plan would extend coverage of sales tax to variety of services not now covered; in unlikely event that Carey program were enacted intact, state deficit would still be $400-million when fiscal yr ends on Mar 31, since new revenues would come too late in fiscal yr; Carey illus (L)

NYSE attributes 18.3% decline in number of stockholders, '70 to June '75, in part to runaway inflation that distorted econ; NYSE vp William C Freund, at news conf, says combination of inflation and recession forced some investors to liquidate their stock holdings; NYSE chmn James J Needham says decline may be interpreted by some as evidence that econ disenchantment has spread to many individuals who have traditionally backed principles of private enterprise capitalism (S)