Assorted historical stuff:
Editorial: Last fall, Fed. Reserve failed to heed urgent warnings for months before the crash; New York Reserve bank and others were noting “orgy of speculation” and urging increase in rates, but Fed “followed schoolteacher tactics of issuing admonitions and warnings.” If new Fed appointments are more “aggressive and forceful,” a great deal will have been gained.
Editorial: Prohibition school opened on Monday to instruct enforcement agents was, on Tuesday, advising making use of children since they could loiter near suspect houses without attracting attention. Thursday the school head retracted this policy. Country should be grateful for small favors; maybe someday prohibition agents can also be “restrained from shooting on suspicion, and wearing camouflage instead of uniforms.”
Veterans of Foreign Wars adopt resolution demanding repeal of Prohibition.
Complaint made in French Parliament about wine retailing for 12 cents/quart when wholesale price is 6 cents; “as the average French family consumes about 2 barrels of wine a year, the difference is appreciable.”
Argentina Pres. resigns, capital under martial law; unofficial reports of revolution.
History of gaslight goes back 3 centuries; discovered by Dutch alchemist Van Helmont, made practical by Scotch inventor W. Murdock using coal gas.
Fad for “Tom Thumb” (miniature) golf leading to construction of larger projects, including 72-hole course in Hollywood.
Bullish demonstrations spread across market, encouraged by some good business news. Majors including US Steel, GE, Radio, GM, Consolidated Gas advanced; bull pools operated on favorites including US Industrial Alcohol, Vanadium, Loews. Coppers higher on short-covering. Volume increased on price advance, strong tone maintained to the close. Bond market slightly irregular, Argentina weak.
Sentiment was favorable after closing rally Friday, though some were cautious because of low volume. Many believe a movement through the summer resistance level at 241 would indicate strong further advances.
Good business news has started to accumulate over the past week, including better wholesale and retail reports (ex. Woolworth), good steel news (increase in production and some indications of price improvement), increase in freight loadings for second week in a row (although still well under 1929 level), some increase in gasoline prices.
Market observers call bear attacks in past week “rather theatrical,” often delayed until final hour to affect sentiment at close.
Public participation in trading still seen small, but public also hasn't been liquidating in response to bear attacks; all in all, public “still is marking time.”
Henry Ford, sailing on ocean liner Bremen, predicts early end to depression. Says might last past Oct., but no wage cuts needed for return to normal conditions.
A well-known automotive authority sees slow 1930 final quarter, but believes 1931 will be strong year due to production cuts in 1930. Production in first 8 months was 2.843M cars, not a large number considering over 27M cars are in use in the US.
Economic news and individual company reports:
Average yield on 20 representative long-term city and state bonds was 3.97% vs. 4.03% on Aug. 8.
S.S. Sandberg, US Shipping Board commissioner, says shipbuilding in US is most active in history excluding wartime; 40 ships totalling 425,000 gross tons are under construction. Jones-White law (Merchant Marine Act of 1928) has helped stimulate shipbuilding.
August plans filed for new construction in Manhattan were $11.5M vs. $33.5M in July and $22.6M in Aug. 1929; first 8 months were $125.2M vs. $472.1M.
Institute of Scrap Iron & Steel survey says all factors in industry indicate rise for scrap prices.
Oil, Paint, & Drug Reporter says sales of chemicals have finally picked up after a period of price stability. Coaltar dyes particularly strong.
Companies reporting decent earnings: American Can (sales holding up well, fruit and vegetable pack better than expected following drought), American Ice, United Light & Power, Colgate-Palmolive-Peet, US Gypsum (price war ended), D. Gestetner (duplicating/office printing), Apponaug (dying, printing & finishing).
“Lawyer (handing check for $100 to client who had been awarded $500) - There's the balance, after deducting my fee ... Aren't you satisfied?
Client - I was just wondering who got hit by the car, you or me.”
Dixiana - “latest representative of an indeterminate breed of talkies which include haphazard elements of operetta, musical comedy, revue, and straight melodrama.”
+ The Boring Stuff: