Assorted historical stuff:
President Hoover is riding high, although Republicans are expected to lose Congressional seats in the November election (as usual for the presidential party in an off-year election). President has gotten his way on most major issues including naval arms treaty, flexible tariff, and farm relief, although in some cases he appeared to bungle the negotiations at the time. He's generally reported to be "in a more cheerful frame of mind than he has been for some time."
Editorial: settlement of Mexican government and National Railway debt represents "one more triumph of hope over experience," following previous two settlements attempted in 1922 and 1925; first of these lasted barely 6 months and the next two years. Regarding National Railway bonds, "it should not go unobserved that a mortgage on a national property adds nothing to the security of a loan, which remains wholly dependent upon the owning government's willingness and ability to pay." Mexican reaction is generally more positive, with the newspaper Excelsior's front page headline reading "Mexico has gained a great victory."
Association of unions affiliated with AFL launches movement to block all Soviet exports based on use of convict and forced labor.
Japan plans to deal with severe industrial depression by government aid and planning to eliminate unsound companies, amalgamate smaller ones, and arrange assistance of banks. Also arranging local government loans for unemployment relief
Governor Theodore Roosevelt, Jr. of Puerto Rico credited with improving finances there through economies and better collections [later became only general to land with troops in first wave of D-Day; survived but died one month later of heart attack].
Bethlehem Steel - Youngstown merger trial postponed a day due to heat.
National Broadcasting Co. receives about 200,000 so-called "fan letters" a month to its radio stars. Men write more letters than women, but women write longer ones. Companies encourage the practice to obtain valuable mailing lists.
AT&T announces price of New York-Buenos Aires call cut $6 to $30 for first 3 minutes, $10/each additional minute, equal to New York-London rate.
Some nervousness at market open due to heavy selling in Warner Bros.; however, major stocks resumed advancing as the session progressed. GM continued advance as did major industrials including American Can, Westinghouse, GE; utilities and copper stocks also strong. Some weakness late, upon which volume again declined. Bonds dull but generally firm.
Increasing opinion that current market discounts the business situation and a rise is now likely. Goodbody & Co. "look for a continuation of general strength this week. Except where pool operations are pronounced, we think the higher prices will be gradual and we do not look for anything but an orderly progress to higher levels."
Some mixed opinion and wait-and-see attitude remains, reflected in continued short interest and large number of below-market buy orders.
Continued public buying power seen in demand for bonds, increases in number of corporate shareholders, and higher savings bank deposits.
New stock trading how-to book published - The Wall Street Stock Selector, sequel to Truth of the Stock Tape. Some rules: never over-trade; don't buck the trend; trade only in active stocks; use stop-loss orders; never average a loss; never let a profit run into a loss. Also lots about using charts to predict future action; author suggests sharp division between insiders and public who, without knowing insider plans, must use stock action to deduce said plans and profit from them.
Economic news and individual company reports:
First 60 railroads report June operating income $58.337M vs. $59.042M in May, $88.371M in June 1929, and $71.540M in June 1928.
Warner Bros. Pictures earnings for six months ended August 30 expected below $5M; previous six months was $10.1M. This will be below dividend requirement; attributed to unexpected decline in movie earnings in current summer.
Coca-Cola net for first half $7.182M vs. $6.492 in 1929.
Companies reporting increased earnings in 1930: Railway Signal, Shaw-Walker (office furniture), Beatrice Creamery.
"Judge - The two men were fighting with chairs. Didn't you try to establish peace? Witness - No, there was not a third chair."
Judge - Did you know the defendant, Pearson? Witness - I had a logical acquaintance with him. Judge - what do you mean by logical acquaintance? Witness - Well, we both belong to the same lodge.
+ The Boring Stuff: