Assorted historical stuff:
Editorial: Governor Roosevelt praised for restraint in his speech concerning public help for the aged. New York State has passed a law providing cash payments to dependents aged 70 or more; Roosevelt admits fault with the law in not requiring contributions from the beneficiaries. Even if called a pension this will almost inevitably turn into a dole system. One only has to look at England to see "the appalling economic and social corrosion that results from indiscriminate state alms." Best solution would be an insurance system also protecting against unemployment, with cost divided between worker and industry, preferably without contribution from the state. Many corporations have already begun to build such a system. One argument for private plans is that "employees generally have more faith in their management than in that of governmental pension systems - and for good reasons."
International Chamber of Commerce meeting in Paris blames much of worldwide economic downturn on gold hoarding by central banks, particularly US and France [many currencies were gold-based].
J.J. Tynan, VP Bethlehem Steel, plans air ferry service between Battery and Staten Island.
$250,000 order placed with American Hardware Corp. for gold-plated doorknobs to be used in Waldorf-Astoria.
Westinghouse Electric organizes Westinghouse X-Ray Co. for "the development of x-ray and electro-medical apparatus."
Toronto hosts a convention for 10,000 Shriners by turning the Canadian National Railway's yard into a temporary city.
Market very dull; morning attack on Steel because of yesterday's bad news ran out of steam; prices generally moved up and closed at highs. Experts pointed out steel curtailment was not far from normal seasonal patterns, and often marked a bottom on production. Share volume 1.227M shares, smallest for a regular session since June 1928. Industrials and utilities up, rails slightly higher. Banks and trusts up on half-year earnings reports showing banks to be "in far better shape than had been feared". Commodities mixed, generally steady.
Some observers feel a new test will be made by the bears next week and the response will indicate the near-future market.
J.M. Kern, Pres. St. Louis-San Francisco Railroad, believes trade has reached its low point and looks for a gradual improvement in the second half of the year.
N.L. Amster, director Rock Island Railway, returns from trip to Germany, France, Czecho-Slovakia, reports business on the upswing in all countries visited. Regarding the tariff, “Although a few exporters registered some complaint ... none of them felt that the question was very grave”, or that it would substantially affect trade.
Eventual recovery from depression is ensured by population growth, as seen in the recent census. 25 years ago steel capacity of 15 million tons a year was considered too high; now three times as much steel is produced annually. Similar increases have occurred in the consumption of many other products.
Economic news and individual company reports:
Miscellaneous taxes collected in 1929 included $450M tobacco tax, $77M stamp tax, and $62M estate tax.
Gasoline consumption first 5 months of 1930 up 12.6% over 1929; May consumption up 5.3% over 1929.
GE and Westinghouse to market branded radio sets. GE line will include "Highboy" and "Lowboy" consoles, ranging from $140-$200. GE stock currently selling at 69, yield 2.3%, earnings for the quarter ended March 31 were $0.50 vs. $0.48 in 1929, earnings for second-quarter expected slightly higher.
Autostrop Safety Razor estimates first-half 1930 earnings will be up more than 56% over 1929. No recent developments in the lawsuit against Gillette.
Technicolor remains target of heavy pressure, declining three points to 31 1/8. Officials continued to deny rumors of new competitive color film processes.
Italy doubles auto import duties.
"'A shoulder strap is an important little article, isn't it?' 'Yes, it's the only thing that keeps an attraction from becoming a sensation.'"
+ The Boring Stuff: