January 17, 1995

Budget Measure Unknowns It is a good bet that an amendment calling for a balanced budget will pass the House of Representatives, but few can say what form the measure will take. Page A16. Spotlight on Greenspan Alan Greenspan, chairman of the Federal Reserve, is taking a more visible role in issues normally beyond his purview. Page D1. Red Sprites and Blue Jets Researchers have spotted bizarre lightning bolts, some red and others blue, that shoot upward from thunderheads. Science Times, page C1. Bishop Is Found Dead Bishop David E. Johnson, who was retiring as leader of the largest Episcopal diocese in the nation, apparently committed suicide. Page B7.

A powerful earthquake shook major cities in western Japan today, killing at least 597 people, starting dozens of fires and trapping hundreds of residents in the wreckage of collapsed buildings. The national police and other authorities said 2,198 people were injured and 531 missing, and the casualty figures were expected to rise as the authorities combed the rubble. In the initial confusion, the official toll of injured was given as 13,000 but that number was later retracted.

With political and economic troubles shaking markets not only in Latin America, but also in European countries like Spain, Italy and Sweden, investors in search of safety and stability have been fleeing to the German mark. So intense has been the demand for the mark that an index calculated by Germany's central bank, pitting the mark against 18 other major currencies, soared last week to 198.6, its highest postwar level. This bolstered the mark's reputation as rock-solid and underlined the confidence investors have in German monetary policies.

When the Clinton Administration announced its latest package of assistance to Mexico on Thursday, two men emerged from the back rooms where the deal was being shaped to explain the plan to the White House press corps. One was the new Treasury Secretary, Robert E. Rubin. The other, however, has no formal connection to the Administration: Alan Greenspan, the chairman of the Federal Reserve. Officials at the notoriously reticent Federal Reserve say they have seldom seen anything like it. Not only did Mr. Greenspan join President Clinton at the White House to persuade Congressional leaders to accept the plan, he also went on to plead to a large gathering of senators and representatives to pass the necessary legislation quickly.

Although her cubicle at the emergency room at St. Luke's-Roosevelt Hospital Center was uncomfortably warm, Martha Rivera of Manhattan wrapped herself in a sweater, scarf and thick winter coat, huddling fruitlessly against a chill that came from deep within. "Oh, my God," she said. "I have never felt so terrible,"

IT was a crisp, golden day in the vast forests here, near the base of Mount Fuji, but for Shigejiro Sugiyama a stroll in the country was an encounter with an impending disaster. He plucked a sprig of cedar and pointed out how the trees were heavy with dense rows of tiny amber buds, the product of a particularly hot, dry summer. They meant that come spring, he and millions of other Japanese are likely to suffer in what experts are saying will be the worst year ever for a malady known in no other country to such a degree: allergic reactions to cedar pollen.

The Economy Alan Greenspan is stepping into the limelight with greater frequency, pushing Congressional leaders to support the rescue plan for Mexico and volunteering solutions to the budget deficit. While previous Federal Reserve chairmen have preferred to keep their policy roles behind the scenes, Mr. Greenspan has been willing to take public stands on issues beyond the Fed's usual direct concerns. That exposure carries risk for a central bank known for its status apart from the executive branch. [ Page D1. ] The life insurance industry is trying to improve its image with a new booklet that explains the purchase of life insurance. [ D2. ]

Although he has already slashed $2 billion from city programs, Mayor Rudolph W. Giuliani still faces another budget gap in the next 18 months that will be as large, if not larger. And those grim figures do not take into account the real possibility of large cuts in aid from Washington and from Albany, where Gov. George E. Pataki is looking for ways to solve the state's own budget gaps and make good on his campaign promise of major cuts in taxes and spending.

The uncertainty of government subsidies for mass transit in New York could force a fare increase in the near future and is jeopardizing a plan to offer discounts to riders, transit officials said yesterday. But they added that it was too soon to predict the timing and size of a fare increase. "Until the state's executive budget comes out on Feb. 1, we won't have a clear idea of exactly how much trouble we're in," said Jay Walder, executive director and chief financial officer of the Metropolitan Transportation Authority.

The law can make companies disclose impending problems. But it can't make investors pay attention. The story of Cyrk Inc., which bills itself as a designer and producer of custom-designed sports apparel and accessories, shows the dangers of ignoring heavy insider sales and of assuming that warnings in prospectuses are just boilerplate. The company had disclosed that its major customer would be cutting back, but investors kept buying the stock. The shares rose 80 percent last year only to give up the entire gain in just 10 trading days this year.

IT was just turning dark one October night when a young woman hitchhiker was picked up on Pacific Highway South 10 miles outside of Seattle by a man with a beard and a three-piece suit. Instead of driving her to Tacoma, the man turned into an isolated dirt road, raped her and left her by the side of the road. Just 24 hours later, the rape victim, shown an array of photographs by detectives, identified Steven Titus as her rapist. Largely on the basis of her testimony, Mr. Titus was found guilty.

SCIENTISTS have been studying lightning ever since Benjamin Franklin demonstrated its electrical nature some two centuries ago, and have generally felt that its nuances were understood. The bolts were white hot, hitting temperatures of 50,000 degrees Fahrenheit and strengths of several hundred million volts. Though dazzling to the eye, lightning as a scientific topic had become rather passe. But it turns out that science missed the most bizarre and interesting bolts of all, which materialize above thunderheads and shoot upward, not downward, flickering across great distances. Such wonders were hidden from view until recently, when ground observers, aircraft and spacecraft managed to glimpse their ephemeral dance.