Fears about an economic downturn sent the Dow Jones industrialsdown

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Black lawmakers said personal calls from Democratic presidentialnominee Barack Obama helped switch them from "no" to "yes."Republicans and Democrats alike said appeals from credit-starvedsmall businessmen and the Senate's addition of $110 billion in taxbreaks had persuaded them to drop their opposition.
"I hate it," but "inaction to me is a greater danger to our countrythan this bill," said GOP Rep. Zach Wamp of Tennessee, one of the133 House Republicans who joined 95 Democrats in rejecting themeasure Monday, sending the stock market plummeting.
Still, the outcome was far from assured. Vote-counters in bothparties planned to huddle first thing Friday morning to comparenotes on coming up with the dozen or so supporters needed toreverse the stunning defeat.
Lawmakers were agonizing as they decided whether to change courseand back the largest government intervention in markets since theGreat Depression. "I'm trying desperately to get to 'yes,'" saidRep. Carol Shea-Porter, D-N.H.
Fears about an economic downturn sent the Dow Jones industrialsdown nearly 350 points Thursday, three days after Monday's historic778-point drop. The Federal Reserve reported record emergencylending to banks and investment firms, fresh evidence of the credittroubles squeezing the country
Obama and his Republican rival, John McCain, phoned reluctantlawmakers for their help. McCain, in Denver, predicted the billwould pass the House.
Rep. John Lewis, D-Ga., told a closed-door meeting of HouseDemocrats that he will support the bill after speaking with Obamaabout it. Other wavering lawmakers said Obama's entreaties hadswayed them as well.
Congressional leaders worked over wayward colleagues wherever theycould find them.
Rep. Steny Hoyer, the second-ranking House Democrat, said there wasa "good prospect" of approving the measure but stopped short ofpredicting passage -- or even promising a vote. Nonetheless, a votewas expected on Friday.
"I'm going to be pretty confident that we have sufficient votes topass this before we put it on the floor," Hoyer said.
The top Republican vote-counter, Rep. Roy Blunt of Missouri, didpredict the measure would be approved.
"A lot of people are watching," Bush pointed out -- as if lawmakersneeded reminding -- and he argued from the White House that thehuge rescue measure was the best chance to calm unnerved financialmarkets and ease the credit crunch. He was calling dozens oflawmakers, a spokesman said.
Minds were changing in both parties in favor of the much-malignedmeasure, which would let the government spend billions of dollarsto buy bad mortgage-related securities and other devalued assetsfrom troubled financial institutions. If the plan works, advocatessay, that would allow frozen credit to begin flowing again andprevent a serious recession.
GOP Rep. Ileana Ros-Lehtinen of Florida, said she was switching her"no" vote to a "yes" after the Senate added some $110 million intax breaks and other sweeteners before approving the measureWednesday night.
"Monday what we had was a bailout for Wall Street firms and notmuch relief for taxpayers and hard-hit families. Now we have aneconomic rescue package," Ros-Lehtinen told The Associated Press.
Republican Rep. Jim Ramstad of Minnesota also switched to "yes,"partly because the Senate attached the bailout to legislation hespearheaded to give people with mental illnesses better healthinsurance coverage.
Rep. Gresham Barrett, R-S.C., also said he'd back it.
Democratic Rep. Emanuel Cleaver of Missouri was switching, too,said spokesman Danny Rotert, declaring, "America feels differentlytoday than it did on Monday about this bill."
And Democratic Rep. Shelley Berkley of Nevada said she would backthe bill after business leaders in her Las Vegas-area district madeit clear how much it was needed. She said, "There isn't a segmentof the population that hasn't been slammed and is not asking forsome relief."
Rep. Elijah Cummings, D-Md., said he was on the verge of voting"yes," based on conversations with Obama. "I've got a man who I'mhoping will be president who's saying that's he's going to do thevery things that I want done," he said. "It makes me feel a lotbetter."
Rep. Bobby Rush, D-Ill., also said Obama was asking him toreconsider his vote. "I'm seriously listening," Rush said.
Emboldened by the feverish bidding for votes, other members of bothparties were demanding substantial changes to the legislationbefore they would vote for it. A group of Republican opponentsindicated they'd back it if the price tag were slashed to $250billion and several special tax breaks added by the Senate --including for children's archery bow makers, imported rum producersand racetrack owners -- were removed. Democrats wanted to add a wayto pay for the bailout and more help for homeowners staring atforeclosure.
Speaker Nancy Pelosi, D-Calif., said no, such revisions wereimpossible because they would slow the measure's enactment andfurther shake markets.
"I don't think that any changes here will do what we need to do,which is right now to send a message of confidence to the marketsthat Congress will act," she said.
The Senate breathed new life into the measure Wednesday after thestinging House defeat, voting 74-25 to approve the bailout, withadditions designed to appeal to key constituencies. Businesslobbyists were also inundating Capitol Hill in a rush to win overwavering lawmakers in both parties.
The changes helped satisfy some Republican critics, but theyangered conservative "Blue Dog" Democrats who are concerned aboutswelling the deficit. Still, Hoyer predicted the number ofDemocratic defectors "is going to be minimal."
In efforts to appease GOP opponents, the Senate added a provisionto raise, from $100,000 to $250,000, the limit on federal depositinsurance.
House Republicans also cheered a decision by the Securities andExchange Commission this week to ease rules that force companies todevalue assets on their balance sheets to reflect the price theycan get on the market.
The developments Wednesday prompted one Republican, Rep. JohnShadegg of Arizona, to say he would support the new bill.
Bush, meeting with business executives at the White House, saidincreasingly tight credit markets are not just hitting big banks inNew York City but threatening the existence of small businessesacross the country.
The modified Senate bill extends several tax breaks popular withbusinesses, provisions that are favorites for most Republicans. Itwould keep the alternative minimum tax from hitting 20 millionmiddle-income Americans, which appeals to lawmakers in bothparties. And it would provide $8 billion in tax relief for thosehit by natural disasters in the Midwest, Texas and Louisiana.
Help for rural schools was aimed mainly at lawmakers in the West.
Another addition, to extend the deductibility of state and localtaxes for people in states without income taxes, helps Florida andTexas, among others. Ros-Lehtinen singled it out as one reason shechanged her mind.
Democratic leaders circulated data showing which states benefitmost from an extension of a tax break for homeowners who do notitemize their tax returns. Texas, Florida, California andPennsylvania ranked among the highest. The leaders hope the measurewill bring support from black lawmakers, many of whom voted "no"earlier this week, among others.
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Associated Press writers Terence Hunt, Ben Feller, Matthew Daly,Alan Fram, Sam Hananel, Kimberly Hefling, Andrew Taylor and EricaWerner contributed to this report.