Assorted historical stuff:
President von Hindenburg supports several measures to improve Germany's economy, including a reduction in wages and internal prices, thereby increasing exports without reducing living standards, a new income tax, a new bachelor tax, and large-scale public works construction.
Los Angeles became the fifth largest city in the US in 1930, increasing to 1,231,730 population from 576,673 in 1920.
President Siles of Bolivia resigns; Washington attributes this to “lack of visible means to meet obligations due this month.”
Candy sales in the US in 1929 were 12 pounds per capita, an increase of 1 pound over the previous year.
Spider-silk – like rayon fibers only .0004 of an inch in diameter have been produced by the American Bemberg company. Rayon may replace the natural silk produced by silk worms, but “Until now the spider has remained unchallenged in his own restricted field, dark corners of attics and of Greenwich Village tea rooms.” A new Broadway restaurant with an Algerian decor has been provided with synthetic spiderwebs made by this process.
Stocks generally under pressure, trading light until the final hour.
Henry Ford says business is getting back to normal and the worst of the economic depression is past.
General Federation of French Production predicts that Smoot-Hawley tariff will lead to European reprisals. Congressman Hawley (Chair of the Ways and Means committee) says foreign nations would find this unprofitable in the long run.
Economic news and individual company reports:
At U.S. fiscal year-end (June 30), it's anticipated that public debt will have declined more than $500M this year but less than the previous year's $673M decline. Total debt has declined from $16,639M to $16,142M in the period from June 30, 1929 to May 31, 1930, and interest paid on the debt is down from $584M to $561M. Tax receipts are holding up reasonably well though down by a few per cent from 1929.
Auto retail sales are increasing though still below 1929, but companies are cutting back on production to help dealers work through their inventory. Industry anticipates the readjustment will be completed by the end of the year.
Movie company earnings were down in May, but this maybe due to a couple of temporary factors including unusually good weather and a lack of notable film releases. However, earnings in the last half of 1929 and first half of 1930 have been up hugely over the previous year, probably a result of the full-scale introduction of sound. For example, Paramount earnings in the first quarter of 1930 were almost double that in 1929. Earnings for the rest of the year are anticipated to be up but not at the same pace. Production of sound pictures required an initial capital outlay, but now may cost less than silent films due to more careful planning and more filming in studios instead of on location. Widescreen film production is not anticipated on a large scale since “the industry is still digesting the two novelties, sound and color. Development of the wide screen will probably proceed when it is felt a new stimulant is needed.”
Italy and Germany have been raising tariffs on wheat. This may affect exporters including the US and Canada.
Woolworth sales down 11.4% in May vs. 1929.
Brown Shoe Co. reports improved earnings for the six months ended April 30 of $1.83 a share compared to $1.65 a share in the previous year. Sold 15.1 million pairs of shoes last year and is planning to expand capacity.
Melville Shoe Corp. reports improved sales for the first five months of 1930. Sales for May up 8.2% over 1929.
“'IT'S A WISE CHILD.' Comedy about the parental responsibilities of unmarried fathers and mothers, both pretended and real; a sprightly inheritance from last summer.”
“Husband – I wonder when you'll learn to make bread like mother used to make.
Wife - probably by the time you make the dough father used to make.”