Assorted historical stuff:
Frances Perkins, NY State industrial commissioner, says Commerce Sec. Lamont is distorting unemployment figures by using percentage of total population instead of wage earners (only 40% of population).
German financial program includes cut in public employee salaries of 2.5%, income tax hike of 5%, and bachelor surtax of 20% of income tax. Approval of Reichstag not assured.
Indian imports of cloth in April 165M yards, down from 215M yards in 1929; decline attributed to Gandhi boycott.
Louis Guenther, publisher of Financial World, returns from trip to Asia. Says Japan is in grip of similar depression to US, China far worse. Labor problems in Japan caused by practice of paying large part of pay in bonuses, then recently having to stop said bonuses. Chinese political situation unsettled in spite of great natural wealth.
Colgate-Palmolive charged with deceptive advertising for using “naptha” in soap brand names, deceiving public into believing that said soap “contained sufficient naptha to be effective as a cleansing ingredient.”
World annual electricity production estimated at 300,000 GW-hours, of which US produces 70%, Germany 11%, Canada 6%.
AT&T applies to Federal Radio Commission for another radio frequency to handle trans-oceanic calls. Complains that during a recent stock slump had 100 calls requested but only able to handle 29.
Saturday session very dull - total volume 586,500 shares, lowest since July 1928. Some bad news in car and steel production, but apparently news was priced in already. Little forced liquidation seen. Bears seen maintaining their positions, renewed attacks feared; observers recommend remaining on sidelines. Other observers point out that many who wait for the turn don't see it until stocks are at new highs.
Old market rules haven't applied in the past year: normally a dull market shouldn't be sold but past month had heavy liquidation following a dull May; normally market anticipates business conditions but this didn't happen for multi-month rallies starting July 1929 and last February.
P.E. Crowley, pres. NY Central railroad: “I cannot believe that this country of ours, with its great and resourceful population ... can long remain in a state of depression, business or otherwise. I believe ... that we have turned the corner; that we will slowly but surely go forward to at least as great prosperity as has ever before been attained.”
Guaranty Trust reports that, after mild upturn last month, business is now trending slightly lower again. Seasonal recovery is probable in August, although it may be irregular and some factors are working against it, including continued decline in commodities.
Economic news and individual company reports:
Treasury again expected to close fiscal year ending June 30 with larger than expected surplus, probably over $200M, not including “sinking fund” operations used in-year to reduce debt by over $500M. Total public debt reduction for year expected $600M-$700M. Income tax slightly over estimate, customs duties slightly under.
E.B. Reeser, Pres. Amer. Petroleum Inst., hopeful program of curtailing oil drilling to reduce excess production and stabilize prices is working out. Oil drilling down sharply in Texas, bringing it almost in line with the program; Oklahoma, Kansas, and California are already in line.
Representatives for Western Electric and RCA are meeting in Paris to resolve a patent war concerning sound films with Klangsfilm-Tobis of Germany. Dispute has thus far prevented exhibition of talkies in Germany, except for Warner Brothers which bought 20% of Klangsfilm for $10M to gain access.
First National Bank of Farmland, Ind. closes after cashier embezzles $12,000.
“Strike Up The Band - A Gershwin musical comedy, satirical of war, grade A milk and other subjects, further enlivened by the capers of Clark & McCullough.”
+ The Boring Stuff: