Assorted historical stuff:
NY Governor Roosevelt addresses the National Governor's Conference. Ventures the opinion that all governors should visit every state in the union before holding office; relays a remark by President Roosevelt [Theodore] to that effect regarding senators and congressmen.
Editorial skeptical of oil industry claims to have curtailed excess production. Coolidge formed the Oil Conservation Board six years ago to serve a resource vital to national defense and to "all industry and to private life as we live it." Notes that while production now matches refinery demand, stocks of gasoline in storage have risen dramatically over past year. Stricter measures may be necessary to ensure overproduction is ended.
France pleased with success of $350M German loan bond issue; product of years of diplomacy; feels it makes German obligations more secure by switching the creditors from foreign powers to “private citizens of all nationalities.”
Broadway theater operators will implement new plan July 21 to curb scalping by ticket brokers.
Bill Robinson [Bojangles], Harlem's greatest tap dancer, appearing in the Palace Theatre. Has been performing for 32 years. Famous for inventing new steps, such as the stair dance. So many performers are now imitating the stair dance that he's now doing his own imitation of himself doing it.
Philippine people have suffered unfortunate consequences from American high-power installment salesman. "One may now see, in or about $50 shacks, such things as $500 radios, $700 pianos, $200 phonographs, and even $1000 automobiles."
Stocks continued rally in the morning but ran into resistance after reaching new highs in the first 3-4 hours. Bad news from Steel changed the general market direction. Bears renewed attacks - much of yesterday's rally attributed to short covering. Substantial short interest remains; bears expected to renew efforts after unfavorable second-quarter earning reports.
Airplane industry is having birth pains as the automotive industry did 25 years ago. However auto industry is now "one of the great pillars of prosperity;" it's having an off year, but production 25 years from now will be much greater than 1929. By that time the airplane industry may also reach maturity, with large employment and earnings.
Market decline has been worldwide, but an improvement in the US should spread. "Business all over the world in recent years has contracted a habit of moving in sympathy with the course of business in the United States. And there is good reason."
Many broker's letters say it's a good time to buy stocks as long-term investments, particularly quality rails, many of which are yielding 6%-7%.
Economic news and individual company reports:
U.S. Treasury surplus for fiscal year ended June 30 was $184M. Receipts were $4.178B vs. $4.033B in 1929; expenditures $3.994B vs. $3.848B in 1929. Public debt was reduced by $746M due to surplus and $554M of "sinking fund" operations charged to ordinary receipts. Original estimate of surplus before start of fiscal year was $225M; 1% tax cut last fall reduced this estimate to $145M.
Senate may direct the Secretary of Agriculture to investigate the multiyear decline in cotton prices. Resolution would budget $125,000 to investigate "the cause of the decline, the amount of short selling, and by whom."
California potential oil output estimated more than 1.1 million barrels daily; current production restricted to about 600,000 barrels, slightly over quota.
Car company shipments in June: Graham-Paige 3,190 vs. 5,989 in 1929; Reo 1,027 vs. 3,042; Buick 4,135 vs. 14,665.
Stock Market Jokes:
At a recent large corporation's stockholder meeting, the secretary was annoyed to find two men with no proxy forms. "Whom do you represent?" the secretary asked. "The short interest," the gentlemen replied.
"Many big operators who leave on vacation vowing not to look at a stock market quotation ... usually find what they are not looking for."
+ The Boring Stuff: