Assorted historical stuff:
W. Green, AFL Pres., says 20M will be “threatened with acute need” this winter, and number of unemployed will rise from 3.5M to well over 5M.
Many industries have adopted “staggered” plan to distribute available work while avoiding layoffs as in past recessions; this reduces weekly income of workers but helps greatest number of people and “alleviates suffering and need”
Dr. R. Senese, pres. of Sene, Inc. of NY (cosmetics), visits White House, proposes $5B loan to mature in 5 years, to be used in national construction program to restore prosperity; to be funded by 1% income tax surcharge on those earning over $25/week.
Germany reportedly feeling out US govt. on reparations and Allied war debts, but hasn't yet declared a moratorium on reparations payments due to US attitude and need to reconstruct economy. Allied nations said to want renegotiation of war debts in case of German moratorium; US reportedly believes war debts and reparations are independent, and there's no need at present to adjust debt payments; points out that annual payments are only a few percent of total budgets.
Australian govt. expected to present balanced budget to House of Representatives at end of Oct.; will include spending cuts, tax increases; “The old alternative of borrowing with the accompaniment of lavish spending of public funds is no longer open.”
10 years ago, 5 farms remained on Manhattan Island. Now only one does, occupying a block at Broadway and 213th St., growing vegetables and some chickens.
American Rolling Mill Co. research developed continuous steel rolling process over 15 years, by which a hot steel ingot weighing 12,000 pounds moves 800 feet in a straight line through a series of mills and furnaces, being converted to sheets at the end of the line.
Berlin inventor creates “reading machine” that can project several book pages from a postcard size film onto a screen, to be read together by a family or audience.
Market wrap: Market less active; substantial liquidation was attributed to tax loss selling, particularly in AT&T, Consolidated Gas, and Radio; US Steel was also weak. There were also bad breaks in specialties including Eastman Kodak and Air Reduction, and heavy selling in soft drink companies including Coca-Cola, Canada Dry, and White Rock on fears of beer legalization. Bulls, however, were encouraged by general market resistance to these unfavorable factors and to recent bad business news; bears did not make much headway and volume dried up on declines. Market tone improved in afternoon. Bond market mixed; foreign govts. rallied; US govts. moderately active, firm; corp. mixed on weaker stock market, but rails steady and investment-grade little changed.
While some stocks have higher earnings in 1930 vs. 1929, there have been few new stock price highs. Stocks that have acted relatively well this year include Amer. Chicle, Amer. Tobacco B, Coca-Cola, Cream of Wheat, Cudahy Packing, General Foods, National Biscuit, Reo Motor, White Rock, Woolworth.
Many still talk about last November's panic, but the current market “has been what some might term a creeping panic, with the prices of many stocks edging off week after week until they now make the Nov. 1929 lows look high in comparison.”
H. Nicholas, First Bancshares Corp. Pres., notes bank stocks have declined below last fall's panic low, in spite of growth in deposits and dividends; says it's the ideal time for organization of a fixed trust (similar to ETF) in bank stocks.
Investment authorities point out that many stocks are selling below value of net current assets, ignoring value of plants and earning power.
Amusement shares (movies) have been working lower recently, possibly due to disappointment they haven't been as depression-proof as previously thought.
Economic news and individual company reports:
Bethlehem Steel Q3 net was $.63 a share vs. $1.86 in Q2 and $4.01 in Q3 1929. E. Grace, pres., says prices are more stable than a few weeks ago and inventories low, but “business is not picking up a bit” and “there is nothing in sight to indicate improvement in Nov.”
Fed. Reserve reports money in circulation Oct. 29 down $24M to $4.426B, total Reserve Bank credit outstanding down $5M to $985M. Member banks in NY City report brokers' loans down $101M to $2.512B vs. $5.538B in 1929 and lowest since June 1926, “all other” (commercial) loans up $120M to $2.616B.
Tobacco tax receipts in first 9 months: cigarettes $276.2M vs. $271.7M in 1929; cigars $14.3M vs. $16.4M; loose tobacco and snuff $51.1M vs. $52.4M.
Amer. Bureau of Metal Statistics estimates Q3 consumption of copper for electrical manufacture was 53,000 short tons vs. 68,000 in 1929; by auto industry was 18,000 vs. 35,000, for building was 11,000 vs. 16,500, and for use in exports was 18,600 vs. 17,800.
Companies reporting decent earnings: Autostrop Safety Razor, Grand Union (9 month net up 29.6%, did not increase store count).
“Mrs. Gee - William, how do you suppose those dozens and dozens of empty bottles got into our cellar? Mr. Gee - I'm sure I don't know, love. I never bought an empty bottle in my life.”
“'Is this beef or is it mutton, waiter?' 'Can't you tell by the taste?' 'No.' 'Then what difference does it make?'”
+ The Boring Stuff: