Assorted historical stuff:
Today is the 61st anniversary of Black Friday, on which Jay Gould and Jim Fisk engineered a corner of the gold market that the government had to break by releasing $4M of gold from its stockpiles. That number makes an interesting contrast with the $26B decline in security values in the fall of 1929.
Editorial: A number of leading British industrialists are calling for “a measure of common sense” to address the current depression. Britain's economic situation is difficult. Its national debt has been little reduced since the war at $37B; its budget has been steadily increasing and is now about $4.4B, up $500M over 6 years [US figures are about $16B debt and $4B budget]. “The greatest drawback to progress has been the dole ... as much a cause as it is an effect of the depression in England today. Once a dole system gets engrafted into a nation it is hard to dislodge it” since it's a great vote-getter. The Labor Party may in fact be lukewarm on protectionism because it would tend to raise wages and therefore operate against the dole. Inability of English politicians to try the logical way out of difficulties “explains why its businessmen are rising in desperation and crying for a return to sanity”; indications are that English workers may also be ready for new leadership.
There's been a dramatic turnaround from front-page talk of drought and famine a few weeks ago to plunging grain prices now.
Canada PM Bennett says will help US investigate Russian wheat short sales; Romania Min. Madgearu asks protection from Russian dumping of farm products.
J.H. Case, Pres. Natl. Assoc. of Community Chests, calls for “peace-time patriotism” and increased giving by those with wealth in this time of unemployment.
Radium is most costly mineral in the world; in Czechoslovakia a 300-man plant makes 3 1/2 grams a year, valued at about $2.5M.
Buster Keaton returns from Europe; reports continuous British propaganda against US films, says Germany more receptive.
Market Wrap: Leading trading stocks rallied following a climactic selloff in final hour Monday when trading was at a rate of 5M shares. Market seemed in better shape technically, with larger short interest inducing some covering; also possibly helping was better feeling regarding Germany. Volume was lighter, possibly partly due to Jewish holidays, but became more active toward close; rally spread to most of list. Leading industrials including American Can, Steel, Westinghouse, rallied strongly from Monday's close. Coppers weak. Bond market less active; govts. generally steady; strength in corp. with Dow 40-bond avg. at new 1930 high.
German news more favorable: Reichsbank defends mark; German bonds up in most markets; German stock market up for first time in several days; leading Berlin bankers express confidence in economic soundness and favorable resolution of political situation, say no possibility of default on external obligations.
Better stock action considered especially impressive in view of continued commodities weakness.
Conservative observers insist that market was due for technical rally, advise taking advantage to reduce long positions, recommend waiting attitude.
Business men continue optimistic on conditions; retail and wholesale trade is gaining and inventories are low; more forward buying of raw materials seen. On the other hand, there is some nervousness over situations in Europe and South America, commodity price declines, and lack of automotive improvement.
Irving Bush, Bush Service Corp. Chair., returns from 3 month European trip. Says conditions still unsatisfactory; US is generally blamed for depression based on “bursting of the bubble of over-extended prosperity” and on tariff. However, tariff damage is “more sentimental than actual”; retaliation so far has not been serious. Optimistic on Europe, most encouraged by evident desire to raise workers' wages and living standards.
Powerful banking interests reportedly were buying stocks in the morning.
Prices of art reportedly have declined much less than stocks or commodities.
Economic news and individual company reports:
Total internal revenue collections in Aug. were $77.2M vs. $87.0M in 1929.
Rail freight loadings week ended Sept. 13 were 965,713 cars, up 109,076 from previous week but down 16.2% from 1929. Loadings year to date were down 11.4% from 1929.
Total farm revenues were $11.851B in 1929 vs. $11.741B in 1928.
Cigarette production in Aug. was 10.577B vs. 10.931B in 1929.
Companies reporting decent earnings: National Biscuit, American Ice, Brown Shoe.
James Boring Travel Service files for bankruptcy.
The Spoilers, with Gary Cooper - story of corrupt officials in Nome, Alaska gold mining country; sentimental melodrama, but excellent acting and good production “represents a return to the best elements of the silent pictures... climax ... is the most vigorous and thoroughly realistic [fistfight] the talkies have yet shown.”
+ The Boring Stuff: