Assorted historical stuff:
Gov. Roosevelt charges public utilities with stock watering, also singling out Associated Gas & Elec. for refusing to allow examination of books to determine reasonableness of rates.
Editorial: Gov. Roosevelt's program for building bridges across Hudson is economically sound and beneficial; should be coordinated with new Mid-Hudson Bridge Authority; “the great success of the New York Port Authority stands as a condemnation of the blind partisanship that delayed it for several years.” There will soon be four state-owned bridges in the 150 mile stretch between NY City and Albany, paid for entirely by tolls, not taxes; eventually there may be many more.
British trade unions adopt report calling for favoring groups within British empire for trade development.
Govt. spending over $19,000/day to fight forest fires in many of the 149 US national forests; danger increased by drought conditions.
Leading stocks steady for most of the day but broke in final 15 minutes; attributed to discouragement over continued failure of seasonal business improvement to materialize, rise in call money to 2.5%, some mildly bad business news. Bears, thought to be defending resistance level slightly above 240, pressed advantage on bad news; volume increased at close. US Steel particularly weak. Bond market volume moderate, prices generally slightly higher; Dow 40 bond avg. at 97.15, highest since July 1928.
Bulls discouraged by some bad business news including slight US Steel production cut due to Labor Day, drop in commercial loans, continued bad freight figures.
Conservative observers say not surprised by market decline; continue to advise reducing long positions and only buying gradually on declines; expect further selloff before next rally.
Cassatt & Co. recommend against trying to catch reactions for trading purposes, favor holding long positions and adding on declines.
Chatham Phenix Natl. Bank says August business activity improved somewhat from July low, indicating July level was “extreme low of the depression, with the natural corollary that from now on the curve of activity will rise.” Finds some improvement in employment; sees likely rise in commodity prices.
Iron Age and American Metal Market report some small signs of improvement in steel production in past few weeks (small increases in production, high demand for structural steel, some improvement in tin plate and automotive demand). This month seen as determining course of steel for rest of year; even mild seasonal recovery will help the industry return to firmer basis.
C. Denney, Erie railway Pres., sees signs of business improvement in recent Erie freight loadings.
Economic news and individual company reports:
Fed. Reserve member banks report for week ended Aug. 27: “all other” (commercial) loans down $64M to $8.416B; total decline of $156M since June 25, was reverse of usual seasonal rise - may indicate “process of business retrenchment is not yet at an end.”
National debt as of Aug. 31 was $16.188B, up $12.1M from July 31 but down $617.8M from 1929.
Brokers' loans to NYSE members Aug. 29 were $3.599B, vs. $3.689M on July 31 and $7.882M on Aug. 30, 1929.
New car registrations for July were 254,098 vs. 260,861 in June and 432,503 in July 1929; for first 7 months registrations were 1.908M, down 26% from 1929. Ford market share in July was 43% with 109,372 vs. 112,717 in June and 151,901 in July 1929; market share for first 7 months was 41.6%.
NYSE Stock transactions in Aug. averaged 39.868M shares/day vs. 95.603M in 1929 and 67.160M in 1928.
Weather Bureau reports substantial rains helping South, but severe drought continuing in large areas including Oklahoma, Texas, Iowa, Missouri; rain generally needed almost everywhere east of Rockies, except for some areas of Great Plains.
Surprisingly, National Casket Co. reports bad earnings due to depression; Pres. P. Heintz attributes decline to lower mortality during depressions and switch to lower-priced caskets.
Newport News Shipbuilding & Drydock Co. submits low bit of $15.560M for construction of new aircraft carrier.
“A Russian was being led to execution by a squad of bolshevist soldiers one rainy morning.
'What brutes you bolsheviki are,' grumbled the doomed one, 'to march me through a rain like this.'
'How about us?' retorted one of the guards. 'We have to march back.'”
+ The Boring Stuff: