[Note: The recap of the 1929 Great Crash will be back tomorrow - Oct. 27, 1929 was a Sunday with no Journal published.]
Assorted historical stuff:
Col. A. Woods, emergency unemployment committee chair., says time is right for construction, with rates and material costs low; to visit NY City today. Williamsburg Chamber of Commerce announces probable $5M project to “start the rehabilitation of Williamsburg.”
Dept. of Justice exonerates Interior Dept. on R. Kelley's charges of handing over rights to Western oil shale lands to large oil companies.
Historical oil stats: World production has increased from about 800,000 barrels/day in 1910 to over 4M currently, of which 64.5% is US. Currently shut-in production estimated at 2.383M barrels/day, of which 1.310M is in the US.
Dr. C. Warburton, Fed. drought relief sec., praises continuation of reduced rail rates on feed and livestock, says food situation may become serious in some states.
US birthrate in 1929 is lowest since 1915, at 18.9 per 1,000 population.
NY Gov. Roosevelt offers state armories as quarters for homeless during winter; Mayor Walker forms committee of 37 to aid jobless.
John David, NY clothing merchant, emphasizes importance of keeping well dressed as an aid to morale.
California has both highest and lowest points of dry land in the US, separated by only 86 miles: Mt Whitney, elevation 14,496 feet, and Death Valley, 276 below sea level. Until 25 years ago, the Salton Basin, near the Mexican border, was the lowest US point, but a 1905 flood turned it into the Salton Sea.
Curtiss Wright Corp. bans use of commercial planes for races due to fatal accident to airport operations manager.
Russian scientists announce methods of making leather from fish, govt. plans to open tanneries. Skin of white grampus said to make excellent shoe leather.
Market wrap: Market action seen as generally positive, with profit-taking on Friday's extensive gains absorbed in good style; volume lower. Early dealings showed substantial gains in major industrials and rails; while the rally wore off as the session progressed and the final direction was down, the market as a whole impressively resisted isolated weak spots including Montgomery Ward and J.I. Case. Bond market rallied sharply on heavy trading; South American strong, particularly Brazil; European and US govts. firm; investment-grade corp. strong, convertibles sharply higher.
Week in review: Stocks showed some rallying tendencies to end the week after the Dow slumped to close at 184.98 on Wed.; at least a technical recovery is now expected. Most commodities were firmer, even early in the week when stocks were down. Bonds were down sharply most of the week, with many hitting new yearly lows; a sharp recovery toward end of the week made up some ground. Money market continued dull and easy; brokers loans continued to plunge, while commercial loans and money in circulation were down; NY City bank investments were up $84M to a new yearly high of $2.227B. German and Spanish situations considered improved; Brazil rebels victorious. Steel production down, as were steel and gasoline prices.
Stocks showing good resistance to recent selling include AT&T, American Radiator, American Tobacco, Woolworth, and dairy shares.
Recent confident statements by several business leaders including J. Raskob “carried greater weight than similar expressions in recent months,” with the market rallying vigorously in response. With commodities showing signs of stability, merchandising stimulated by cooler weather, and generally low production, chances of further declines in business were seen as lessening.
Union Trust of Cleveland says fresh wave of business pessimism in Oct. was unwarranted; notes definite evidence of improvement in merchandising and residential building, and very low inventories. Says business may be disappointed at slow pace of improvement, but believes fourth quarter will be looked back on at start of business recovery. Criticizes attempts at the “false stimulation” of trade.
Conf. of Statisticians in Industry says Sept. and first half of Oct. show a few encouraging details but no positive indication that a general upturn in business is here.
Economic news and individual company reports:
Irving Fisher's index of 200 commodities for week ended Oct. 25 was 82.7, unchanged from previous week and vs. 94.1 in Oct. 1929.
Recent demand for municipal bond offerings is down, particularly from banks, which “appear desirous of keeping their funds in liquid condition.”
Sept. rail earnings have so far been much better than expected, with first 12 rails reporting a 13.8% decline vs. 1929, compared to a 32.5% decline for all rails in Aug.; improvement is attributed to expense cuts in response to lower revenues.
Standard Oil of Indiana reduces crude oil prices in Oklahoma and Kansas by $0.07 to $.38 a barrel.
W. O'Neil, Gen. Tire & Rubber Pres.: tire inventories down 2M from this time last year; only 1 1/2 tires per car in use sold this year, drivers wearing tires out; expects higher demand, tire shortage in spring.
Companies reporting decent earnings: Lambert (Pro-Phy-Lac-Tic toothbrush, toiletries and medicinals), Diamond Match, Anchor Cap (glass, food containers).
Ambassador Theatre presents play loosely based on the Marcus Garvey movement, starring Frank Wilson as Marius Harvey. Play begins with fraudulent stock promotion enterprise, resulting in a sincere back-to-Africa movement that ends bitterly in abandonment by the colonists.
Stock market joke:
“Broker: 'There are some very cheap stocks on the list ... that you might buy.' Trader: 'But I think something is overhanging the market.' Broker: 'You're right. The market keeps going lower because it has overhanging it thousands of traders who think something is overhanging it.'”
“'Mary has just married Bill Hendricks.' 'Bill Hendricks? Impossible! Why, he's the man she was engaged to.”
“Satan (to new arrival) - Hey, you act as though you owned this place. Newcomer - I do. My wife gave it to me.”
+ The Boring Stuff: