Assorted historical stuff:
Romance is replacing "realism and matter-of-factness" in both fashion and theater. "The post-war years of bobbed tresses and short skirts" were ones of "rude materialism." In theater, "the measured rhythms of poetic drama were muted in the hurdy-gurdy tunes of a quick-stepping generation." Now, theater managers travelling to Europe find fashion returning to "laces and ribbons and sweet old-fashioned flowers," and in theater a revival of "old-fashioned love stories or flaming medieval romances." Of course, romance never went out of style some places: "It is axiomatic among American showmen that, west of the Hudson, American audiences have always been frankly sentimental."
Editorial: Good terms obtained by Mexico in debt settlement "shows what a debtor can accomplish if his nerve and ability to procrastinate are sufficiently lasting." Also noted is Germany's success in cutting reparations to a fourth of original demands. However, Mexico is now in the penalty box; "Only after demonstrating her ability and disposition to meet obligations beyond question and quibble will it be worth her while to attempt further outside borrowing."
Met Life 1930 figures based on 19M policy holders in US and Canada show sharp drop in disease death rates among wage-earning population to record lows.
Romanian King Carol refuses to accept resignation of cabinet following antisemitic disturbances.
NY State Bureau of Securities summarizes reports turned in by 270 investment trusts [similar to mutual funds]. While investigations of those suspected of fraud and misrepresentation continue, “it is gratifying [that] ... no such practices have been found in any of the larger and more responsible companies.”
Atchison, Tokepa & Santa Fe Railroad exhibits "air-cooled by refrigeration" dining car to be placed on "crack train" between Chicago-Los Angeles.
For first time in history, a lighter than air craft landed on a ship's deck and boarded a passenger (blimp took Goodyear Pres. P.W. Litchfield off the Bremen).
Twelve leaders of industrials (incl. Studebaker, American Rolling Mill, Pillsbury, etc.) oppose wage cuts as aggravating business recession.
Bears attack early, target Consolidated Gas (on possible lower NY City electric rates), and majors including GE, US Steel, GM, AT&T. After brief recover around 11AM, bears renewed attack. Resistance developed, as stocks were not sold on setbacks. Tuesday's positive report from Steel finance committee seen as (delayed?) factor in support. Broad rally then developed in active stocks.
Henry Ford says present depression is "of minor moment in onward sweep of industry," also defends modern civilization against charge it cramps the individual. Thomas Edison says the depression is largely psychological.
Walker Brothers point out strong similarities of current business and market conditions with 1921. Market pattern of break last fall, followed by recovery and second break in spring, almost identical to 1921 in both timing and percentage. Other indicators including commodity prices, freight loadings, and dividend yields also similar. First indicator improving in 1921 was construction, two months before stocks hit lows [followed by 8-year bull market]. Therefore encouraging that construction turned up in June.
Conservative observers still advise remaining mostly on sidelines until market breaks out of range, taking profits on rallies, and waiting for reactions to buy.
US Steel earnings report seen as encouraging; able to earn almost full years dividend requirement of $7 in first half, whereas in past depressions was unable to cover dividends. Improvement due to greater diversification and operating efficiency. Management optimism is significant considering their usual caution.
Economic news and individual company reports:
NYSE transactions in July totalled 47.745M shares vs. 93.372M in 1929; smallest monthly total since July 1928 (39.994M).
William Green, AFL Pres., reports trade unionist unemployment in 24 cities was 21% in July vs. 20% in June.
Almost all car manufacturers to restart production by August 4, including Ford, Packard, Oakland-Pontiac, Graham-Paige.
New construction contracts for 37 states east of Rockies July 1-25 was at rate of $14.146M/day vs. $25.094 in 1929.
Companies reporting good earnings: American Water Works, Corn Products, National Dairy Products, National Supply.
Shangai Telephone Co. of Brooklyn incorporated in Delaware.
Strangely modern Hollywood joke:
"'How do you like your new publicity agent?' asked the film star's friend.
'Oh, he's wonderful,' she cried, beaming with enthusiasm. 'We've been robbed twice, our house has been burned, our car has been wrecked, and I have had my life threatened by an anonymous enemy since we employed him.'"
+ The Boring Stuff: