Assorted historical stuff:
Independence Day editorial criticizing post-World War isolationism as a distorted concept of independence; calls for a middle ground “somewhere between the extremes of complete isolation and unreserved internationalism.”
House and Senate pass resolution urging speedup of authorized public works to relieve unemployment. Treasury announces $87.5M contracts to be awarded before end of the year.
Researchers for the state of California find that girls are more intelligent than boys of the same age. About 10% more boys than girls are developmentally disabled; about 4% more girls than boys skip one or more grades; girls found able to study better than boys, and to be "more mature mentally."
Film advertising and publicity directors pledge to join filmmakers in observing the Hays code, including “respect for the clergy and the law, avoidance of ... the mention of specific details of crime, and the featuring of nudity or the use of liquor in American life.” Also, censoring is not to be mentioned in ad campaigns.
Ira E. Robinson chairman of Federal Radio Commission, accuses "radio trust" of seeking to monopolize the airwaves, posing "the greatest danger to the fundamentals of American Government." Calls upon broadcasters to recognize that licenses obligate them as public servants. Also condemns excessive commercials.
Final session before three-day holiday weekend began very sluggish; leading stocks failed to respond to bullish news of a decrease in brokers loans (down $197M to $3.219B in week ended July 2). Bears then resumed operations in afternoon and activity picked up, with many leading industrial and utility shares shares closing substantially lower. Banks slightly lower.
Gillette Safety Razor plunged to lowest level since 1925 on concerns of increasing competition, good report from competitor AutoStrop Safety Razor. Other bear targets with large price declines included Air Reduction, May Department Stores, duPont, and Timken Roller.
Dr. T. Grayson, dean of Wharton, advocates unemployment insurance; says current tariff system is “suicidal as well as ridiculous.”
Current depression doesn't appear that serious: number of shareholders of major corporations continues to grow; gasoline demand is up; Treasury is running a surplus; mass transit and auto traffic continues high; dividend and interest payments will not be far off record 1929 levels. Prevailing opinion is that “stocks cannot be forced much below current levels.”
H.H. Allen, economist, says history indicates we're in for two or more decades of price decline. Calls on business to adjust. Says that declining commodity prices don't inevitably cause depression, and normal profits are as possible in periods of declining prices as in rising.
Economic news and individual company reports:
Total imports in May $284.6M vs. $400.1M in 1929; exports in May $312M versus $385M in 1929.
Fiat announces plan to increase output, while an Italian tariff of 100% on autos is proposed. Market not sure what to make of it; no shares traded on the Curb Exchange.. “There has been talk from time to time that a big American automobile company was seeking control of Fiat.”
American Chicle (chewing gum, brands including Chiclets, Dentyne, Black Jack, Beeman's) reports net earnings for first five months 1930 were $811,000, slightly higher than 1929. Expects record earnings for the full year. Stock currently sells for approximately 10 times 1929 earnings, dividend yield of 7.1%.
Chicago plumbers union following several months of negotiations receives wage increase of 7.5 cents/hour to $1.70/hour.
Chrysler announces 10% cut in salaries. Cut is being made to share the burden with hourly labor, which has already suffered a substantial reduction in working hours. Cut is being applied uniformly to all salaried employees from Mr. Chrysler on down.
“The Last Mile - Mutiny in a prison death-house treated in the mood of modern war literature.”
+ The Boring Stuff: