THE BUBBLE BEGINS TO BURST US DRIVE RECESSION

has started in the insistence ful commercial Federal Reserve taken supply interest rates.

The measures already taken have led to an increase in • bank-lending rates and an all-round rise in the prime interest rate is expected next week. These deflationary moves are being backed up with a series of cuts in spending in the forthcoming federal budget.

The effect of the higher interest rates will be to slash industrial investment over the coming months and give another push to the downward slide on Wall Street. The stock market index has declined steadily for over a month and is now at close to its lowest level for 15 months.

Confidence in all forms of inflationary paper is non-existent as the behaviour of Wall Street share prices indicate. Meanwhile after a temporary ebb the price of gold is going up again and a new wave of panic is expected any day.

Yesterday the price was fixed in London at $105.75, $2.50 above the overnight closing price. The dollar again fell heavily in relation to sterling, reflecting the reluctance of traders to hold the US currency over the weekend for fear of a sudden devaluation in the wake of the $10,200m quarterly balance of payments deficit.

Despite their deflationary consequences the Reserve Board's actions are regarded by a very influential section of the Us bankers and industrialists as falling far short of what is required. They see the credit restrictions as the actions of weak government paralysed by internal crisis and scandal.

To try and placate these advocates of savage deflation, the Board announced its credit TO PAGE towards recession United States. of the powerbankers the Board has steps to tighten the tighten the of credit and push up and CIA witness names Nixon IAR PON UCAT JENT WARDS STREE!

JAMES McCORD, one of the convicted Watergate burglars claims political pressure was put on him-with President Nixon's knowledge-to stay silent and go off to prison quietly.

He read a personal statement to the Senate committee of inquiry yesterday which he said he had prepared for the purposes of accuracy. He said political pressure had been put on him to accept executive clemency to remain silent over the Watergate case.

This pressure began in January 1973 following his conviction for burgling the Democratic Party. campaign headquarters. Administration official ohn Caulfield had told him to remain silent and go off quietly to jail. DIRECT LABOUR UCAT? BAN Kin INE BAN WMP KATT 'I was told that while I was there I would receive financial aid and later rehabilitation and a job.' He was told by Mr Caulfield that the President of the United States was aware of the meeting. He said that the results of the meeting would be conveyed to the President and that at future meetings there would probably be a message from the President himself.

A former member of the CIA McCord said he had undertaken the break-ins for several reasons.

'One of the reasons,' he said, 'and a very important reason to me, was the fact that the Attorney-General, Mr John Mitchell, had considered and approved the operations, according to Mr Liddy [another Watergate burglar].

The march from Tower Hill to cided with the second reading private member's Bill t practice of labour only MAN CUBITTS N3 UKY WAY HANWORT INTED AGAINST THE LUMP!

A GREAT post yesterday.

Our total is now £23,931.99 —just speaking distance from £24,000. Socialist Labour League branches sent in: Holloway £20 Acton £90; Southall £10; Edinburgh £15; East £5; Coventry ATUA £10; Basingstoke £1; Bristol £11; Glasgow North £10; Glasgow South £10; Paddington £10; Croydon £10; Docker readers £1; Vauxall parts London building parliament coinof Eric Heffer's abolish the 'lump', the subcontracting.

But many building workers on the demonstration had their doubts about the effectiveness of the Bill, which will almost certainly be defeated.

One group from the Headway's site, Battersea, chanted:

'A General Strike will kill the "lump". A herd of Heffers won't.' Fred Torkington, UCATT steward from the Partington's site, Bolton, part of tinf 400-strong north-west contingent, said: 'Nationalization without compensation is the real way to end the "lump".

If this Bill fails, the TUC should step in and call out everybody. There'll be a national strike if we don't get satisfaction.' Charlie Finn, AUEW steward GLC, said: The problem is the union leadership. The Bill won't get through parliament because too many MPs have an interest in the industry?

In the Commons Heffer told MPs that as he spoke thousands of building workers were either demonstrating in the major cities or had sent delegates to lobby their MPs.

Labour-only subcontracting, he said in moving his Bill's second reading, led to widespread tax evasion. The Labour Party would abolish it.

• More builders' news p. 12.

IHHIHI HIHI FUND hall's Ellesmere Port Trimshop T&GWU 6/70 No 4 £5 T. Brindley (Hull) £10: B. E. £1,000. Keep it up com rades. We have still a long way to go. Post all donations to:

Party Building Fund 86a Clapham High Street London SW7 7UG

Press, 19,