Assorted historical stuff:
Leading feminist organizations in France campaign to eliminate use of guillotine in executions, supported by "practically all the radical newspapers."
Canadian Conservatives win sweeping election victory; some fear of resulting tariff measures since Conservative leader Bennett campaigned on policy of high tariffs to keep Canadian spending in Canada and relieve unemployment.
Administration announces it has no intention of discriminating against Russian goods even though Soviet govt. not officially recognized. Lumber industry expresses concern about competition, claims use of forced labor in Russian logging.
Editorial: Communist threat may be exaggerated; propaganda naturally causes counter-propaganda. “Every reasoning effort to estimate quantitatively the progress of Communism in this country forces the conclusion that as yet it has been pitifully small in comparison with the effort expended and the noise made on its behalf.”
Editor: "You have mentioned various reasons for the continued progress and prosperity of the US, but you have overlooked the main reason. Last year college students enrolled in the US numbered 1,237,000, exceeding the total of the rest of the world by 287,000. No further comment is necessary."
"A transpersian Railway, about 1000 miles long, is now being built by American contractors as a part of the modernization scheme sponsored by the Shah of Persia." Railway will extend from Persian Gulf to Caspian Sea, construction cost about $125M.
Captain L. Yancey talks by radio phone to Sydney, Australia from plane 5000 feet over Buenos Aires, total distance of 14,000 miles.
Daily plane service started between New York and Saratoga for racing season; fare is $30; flights leave daily at noon and return after the last race at 5:30.
Market action generally not bad, but pronounced weak spots, particularly in rails on bad earnings news. Utilities and industrials relatively firm, including Standard Gas and GM. Steel industry encouraged by plans for higher auto production in August. Short covering seen through most of session; decline became more general in last hour. Bonds irregular - foreign governments strong, rails and preferred stock weak.
The Room Wit: "The one trouble of the trader who thinks his judgement infallible ... is that the margin man bothers him too much."
T.S. Holden, V.P. of F.W. Dodge Corp., reports on construction: public works and utilities up 40% over 1929, but residential down 47%, though improving since March. Blames “overproduction that started long before the fall stock market break.” However, says most surplus residential space has been liquidated, and sees easy money stimulating renewed residential building. Calls for improvement in house quality similar to that in autos, radios, etc.
Earnings in a number of sectors are being artificially depressed by very low inventories. This suggests increased earnings when purchasing returns to normal.
Some of the more optimistic steel producers expect production at over 80% before end of year; this should mean satisfactory earnings for the industry.
Favorable market factor seen in "absence of over-speculation" by both traders and investors; public has been slow to buy, traders are quick in taking profits, and brokers' loans are at lowest level for many years.
Conservative observers still advise caution until market demonstrates further recovery on good volume; advise taking profits on sharp upturns in individual stocks, and also "switching from stocks with doubtful prospects into those with a better outlook."
Economic news and individual company reports:
President Hoover asks Attorney General for major investigation of bankruptcy laws, to recommend needed reform legislation.
Undaunted by recent "hot" reception in Kansas, Farm Board Chair Legge to travel to Central and Northwest states to resume pleas for reduced wheat acreage.
Bank loans continue to decline; in past month, security loans down $26M to $8.398B and "all other" down $118M to $8.454B. With low demand for credit, banks have been investing heavily in government and other securities and paying off debt to Federal Reserve.
Department store sales for June in 266 cities were down 10% from 1929; first half sales down 5%.
Companies reporting good business: IBM, General Foods, Allis-Chalmers (farm and industrial equipment), Raybestos-Manhattan (asbestos), United Biscuit.
US Steel Q2 earnings $3.02/share vs. $3.44 in Q1 and $6.68 in Q2 1929.
William Jennings Bryan asked John Baird to marry his daughter Mary E. Baird by quoting Solomon's proverb "Whosoever findeth a wife findeth a good thing and obtaineth favor of the Lord." Baird countered with Paul's observation that "While he that marrieth doeth well, he that marrieth not doeth better." Bryan won argument by pointing out that Solomon ought to be a better authority, having married a thousand times to Paul's zero.
+ The Boring Stuff: