Assorted historical stuff:
Editorial: Bethlehem Steel executives may have been worth $3.4M in bonuses in 1929, but it was a mistake to keep the size of the bonuses secret; openness would have avoided the current embarassment and allowed shareholders to express their opinion pro or con. “It cannot be imagined that Mr. Grace or his associates would have wished to continue in receipt of salaries condemned by holders of the majority of the company's shares.”
North Side Chicago community of "Little Sicily" has had 12 to 20 murders yearly for past 18 years in square half-mile area. Most have remained unsolved due to necessity of informants appearing in court.
J.G. Latham, Australian opposition leader, says unemployment is at 18.5% of working population; calls for cuts in government expenditure, against tax increases.
Spanish cars using olive oil as lubricant. Olive producers asking government to support research to expand its use.
"Mrs. A. Barton Hepburn, widow of A. Barton Hepburn," named director of the Industrial Banking Corp. Believed to be first woman director in industrial banking field. Selection is recognition of Mrs. Hepburn's business achievements and her long interest in "the advancement of women in active participation in financial and industrial affairs." Mrs. Hepburn is a leader in many civic associations. "Her clubs are the Colony, the Cosmopolitan, and the Colonial Dames."
Market opened with large buy orders for major industrials. Many majors in early trading reached highest point of last week. Buying broadened to rest of industrials in late morning; upward movement continued almost all day. Some short covering seen. Car stocks strong, particularly GM; in spite of generally weak news. Utilities strong; amusement stocks dull. Banks and trusts weak.
Prominent brokers, rumored to be supported by banking interests, recommended buying sound industrial stocks. Believe this month marks the bottom of the industrial recession and stocks are likewise scraping bottom. M.J. Meehan & Co. expressed confidence in industrial outlook and recommended investment in representative stocks at current prices.
L.G. Federman, Pres. Interstate Dept. Stores, believes “Business in general hit bottom last month,” and likewise for commodity prices. “Both are now picking up and I am confident the advance will rapidly gain momentum.”
Conservative observers remain cautious; believe broker recommendations have so far attracted traders looking for quick profits, not long-term investors and general public. Recommend not reaching for stocks but buying leading issues on declines. Immediate outlook uncertain, but longer term considered encouraging.
Second-quarter earnings so far better than expected. Third-quarter predictions are difficult; current business is below second-quarter average; if seasonal pickup does not develop until September, as leading authorities expect, the improvement won't be reflected in third-quarter earnings.
Economic news and individual company reports:
Deposits at member banks up $1.494B to $21.317B in past six months. Similar increase to 1924, which was soon followed by business revival; caused by easy money policies of Reserve banks. However use of the money has been different from 1924; banks then increased commercial loans, but now there's been a large decrease in commercial loans and large increase in security loans and investments; easier credit policy has so far failed to increase demand for business credit. However, if a recovery does come, the Fed would be reluctant to allow rates to rise; necessary expansion in Reserve credit could then lead to inflation.
Current interest rates: Fed. Reserve NY discount 2.5%; commercial paper 3.25%-3.5%; 90-day bankers' acceptances 1.875%; call loans 2%.
First 8 rails reporting June earnings total $10.368M, down from $10.912M in May and $14.137M in June 1929.
Oil refineries now operating nationally at less than 70%; California at 58.2%. This curtailment should soon strengthen refined product markets.
First-class ocean travel in first-half down about 20% from 1929; third class travel increased.
New York Stock Exchange seat sold for $400,000, down $68,000 from last sale.
Mysteries of Nature. Film opens with scarab beetle rolling ball of camel dung; other details of beetle lifecycle; studies of plant life including the "uncanny fly-trap;" capture of large Nile crocodile; laboratory experiments with sound waves; large tropical spiders; and finally, "battle-to-death between the most poisonous tropical snake known and a non-poisonous adder," each more than 6 feet long (adder wins after terrific struggle).
+ The Boring Stuff: