Assorted historical stuff:
Dr. C. Warburton, national drought relief committee chair., says credit associations beginning to function in drought areas to provide secured loans to farmers; Red Cross and communities are to help in cases of families in distress or unable to provide security.
H. Schacht, former Reichsbank Pres., calls on Secy. of State Stimson; wouldn't comment on government affairs, but declared German people would try to do everything right as long as possible, and maintain calm and not upset the world by violence.
O. Lee, Wisconsin Penitentiary Warden, notes very few men in prison have a good education: out of 634 admissions in the past year, only 5 had a university education and 154 hadn't gone beyond the fifth grade.
R. Updegraff, writing in the current issue of Tomorrow's Business, sees bright future for gas stations: “May it not be that new villages and towns and, ultimately, cities, will grow up around some of the best located of our roadside filling stations?”
Dornier DO-X [flying boat, world's largest plane] to start transatlantic service Nov. 3; airmail rates will be $1.50 for letter and $1 for postcard.
New York Trust Co. opens new branch at 57 St. and 5th Ave. today; 15 story marble building of classic Greek design, with almost all fixtures made of aluminum to harmonize with white marble; main banking room decorated with 200 by 13 foot historical mural by G. Coale depicting New York since 17th century.
First industrial enterprise within current US territory was manufacture of glass near Jamestown, Virginia in 1607. Production of glass goes so far back in history that its origin has been lost; it's mentioned in the book of Job, and Pliny credits its discovery to Phoenician sailors. “A Roman emperor is said to have beheaded a man who invented malleable glass, since then the precious stuff would no longer be valuable as tribute from his conquered enemies.”
Market wrap: Another flood of selling early, with new yearly lows in majors including GM, GE, New York Central, and Westinghouse, and the general list under heavy pressure. Selling was attributed to liquidation of margin accounts and renewed bear pressure based on lack of support in Friday's session. However, trading remained orderly with “scale buying” seen, and moderate rally developed at end of first hour. This improvement was wiped out in the second hour by selling wave starting in American Can and spreading through the list. US Steel hit new 1930 low; specialties including Gillette and Worthington Pump down sharply; utilities and oils weak. Bond market active; foreign governments continue strong; US govts. steady; corp. moderately lower, particularly convertibles.
Week in review: Efforts at sustained stock rally unsuccessful, and prices plunged to post-panic low, though lower volume Friday indicated selling might be losing urgency. Foreign bonds rallied through week, led by Brazil; US govts. firm; corp. generally weaker, convertibles near year's low. German position seen considerably better on inability of Fascists to block Breuning govt., and new $125 loan; stocks rallied sharply. Continued unrest in Spain. Moderate rally in grains, while cotton hovered near yearly lows. Renewed caution seen by steel buyers after slight Sept. revival. Weakness in gasoline and oil prices.
Broad Street Gossip: Stocks have gone almost straight down since Sept. 10, except for two or three rallies; Friday's close of 187.37 was down 57.72 from the Sept. 10 peak. Some are now calling it Wall Street's worst market ever, “even more severe in certain particulars than the October-November market of last year.”
Experienced market observers see the current universal bearishness as very favorable; market psychology is exactly the opposite from that a year ago when bullish enthusiasm obscured unmistakable signs of a rapid decline in business. Many who were observant enough to sell in the final stages of the bull market are now taking advantage of deflated values and good yields to replace their holdings.
F. Hobbs of Central Trust of Ill. says business improvement started in July, is now apparent in “operations of several hundred concerns”; sees full recovery in 1931.
Economic news and individual company reports:
Total internal revenue collections in Sept. were $545.1M vs.$594.0M in 1929.
BLS reports retail food prices Sept. 15 were up 1 1/3% from Aug. 15 but down 9 1/2 percent from 1929. Wholesale prices in Sept. were up less than 1/2% from Aug., first rise in over a year.
Panama Canal traffic increased in first half of Oct., first gain since March.
GM dealer sales in Sept. were 78,792 vs. 85,610 in Aug. and 146,483 in 1929; first 9 months were 1.009M vs. 1.676M. A. Sloan, Pres., says Nov. dividend payment secure; seen as reflecting confidence GM can maintain dividend under current conditions.
Dow made new post-panic low. There were 2 new yearly highs and 221 new lows [Note: most of these new highs are in preferred stocks].
Stock market joke:
“'Sorry my stock trend chart was a little off last month,' apologized the chart reader to his $5 a month client. 'Don't apologize,' replied the client. 'I made money.' 'That surprises me. How did you do it?' asked the chart fiend. 'I read it upside down and didn't know it,' answered the client.”
+ The Boring Stuff: