Assorted historical stuff:
Pres. Hoover organizes Cabinet committee including Secretaries of Treasury, Commerce, Labor, Interior, and Fed. Reserve Board Gov., to survey unemployment situation; asks committee to “formulate and submit to me plans continuing and strengthening the organization of federal activities for employment during the winter.” Sees possible directions for action as cooperation with local govts., cooperation with industry, and direct federal employment in public works.
Editorial: Merit seen in plan by NY City financial and industrial leaders to raise about $150,000 weekly to provide work for about 10,000 unemployed. A large number of those now unemployed are recently prosperous heads of families now in urgent need of work; plan aims to provide them with some work, even if it only pays “a pittance.” That there's a need for this plan is unpleasant, but “there is no use blinking at the actual conditions.”
White House sees indications of a business revival; Pres. Hoover met Thursday night with Bernard Baruch to discuss the general business situation; this is one of a series of meetings with others including A. Sloan, GM Pres., and R. Whitney, NYSE Pres.
H. Dougan, Great Northern Rwy. Pres., says Russian rails in need of modernization; doesn't see Russia becoming huge wheat exporter; believes current exporting is to pay for 5 year plan, and within a few years Russia will permit its people to eat more and more wheat until domestic consumption nears production.
AFL adopts resolutions asking for almost total exclusion of immigration during depressions.
NY Telephone conducting extensive program of personal visits, leaflets, and advertising to prepare for addition of numeral to phone numbers on Dec. 16.
Navy awards aircraft carrier contract to Newport News Shipbuilding; construction to take up to 40 months at cost of $15.6M.
Transcontinental & Western Air to begin 36 hour service between Newark and Los Angeles Oct. 25; fastest previous service was 48 hours.
NY movie houses doing their best to keep patrons happy. Aside from movies, additional entertainment provided includes “artistically costumed” musicians, handwriting analysts, telegram service, voice recording, dances after the last performance, and “freak show complete with giant, ... sword swallower, and barker.”
Names of boys sheltered at Hiram House [a charitable settlement house near Cleveland] included Elijah Donkeyo, Dairy Lunch, Oldham Bacon, Pictorial Review Johnson, and Admiral Dewey. Girls' names included Marietta Pickle, Ivory White, Vaseline Malaria, and Queen Esther.
Market wrap: Stocks continued downward, with new lows in most averages, many majors including GE, Sears, GM, New York Central, and “numerous other issues of lesser importance.” Weakness shown from open, with several rally attempts unsuccessful; selling increased materially in afternoon with weak final tone. “Nothing happened in the outside news to account for the continued weakness in the general list.” Bulls possibly discouraged by prospect of poor upcoming third-quarter earnings reports, and by end of period when seasonal improvement could be expected. Bond market irregular; foreign govts. strong, particularly South American; US govt. firm; corp. bonds react in sympathy with stocks.
Trading remained orderly in most stocks, with plentiful bids “on a scale” down, indicating possible demand from short covering and “long-pull” buying.
Bradstreet's and Dun's weekly reviews see continued uncertainty in trade movements; some favorable factors including higher cotton exports in Sept. and “less hesitancy in a number of branches,” but disappointment “at the showing even of those industries which revealed a moderately better trends in Sept.”
Particularly uncertain earnings outlook seen for automotive, steel, and oil companies.
Dow made new post-panic low. There were 2 new yearly highs and 121 new lows [Note: most of these new highs are in preferred stocks].
Economic news and individual company reports:
Brokers' loans reported by member banks in NY City have declined $470M in the past 3 weeks to $2.752M, lowest total since Feb. 1927.
There are now 24 corporations with assets over $1B; total assets of these are $40.9B, or about 12% of total US wealth.
US debt reduction this year may be only the legal minimum of $445M, vs. about $800M annually in the past few years (debt is now about $16B).
NY State savings banks continue trend of increased deposits; net gain in Sept. was $22.6M to $4.603B, vs. $18.7M gain in Aug. and $8.9M loss in Sept. 1929.
“Egg prices crack” to lowest level in many years.
Companies reporting decent earnings: Scott Paper, Vortex Cup, Peoples Gas, Light & Coke, Household Finance Corp., Bessemer Limestone & Cement.
Company reports since Oct. 1: 58 companies reported higher earnings vs. 1929 and 67 lower; 163 dividends unchanged, 18 increased, 23 cut.
“Her Mother - Do you always greet Ferdinand with a kiss when he comes home from work? Mrs. Snoops - Yes, always. How else could I find out if he's been drinking?”
+ The Boring Stuff: