Editorial on Pres. Hoover's speech at the ABA convention: “Without minimizing the severity of the depression or setting any dates for recovery, he sees nothing to fear. ... There was no attempt to belittle the situation or to convince his audience that prosperity was just around the corner. A bad business situation can never be talked away ...” Instead we must face the facts, find the causes, and tackle them with all our strength. “The man who will not be whipped cannot be whipped.” This depression, like most, is the aftermath of an inflationary boom. But it's “not a permanent situation; it is more like the headache that is supposed to come the morning after a night of dissipation.” The recovery comes when consumption and production balance again; this process has been underway for over a year and won't stop. It may, however, have been slowed down by unnecessary pessimism and fear; this should be tackled both by bankers and by the general public.
In past 20 years, average steel prices have gone up 26% while average wages have gone up 133%.
German Chancellor Breuning seen likely to pursue dictatorship to enact program; several provisions would require 2/3 majority in Reichstag since they infringe Constitution, and this is unlikely to be attainable. Stock market again declines, possibly due to foreign market declines and fear of impending strikes.
French govt. takes steps to halt “flood” of Russian imports, including licenses requiring equal amount of French exports to Russia.
“Competent observers” doubt that Russia is attempting to rattle world business or is in a desparate state; more reasonable explanation is that it is trying to reduce its current sizeable trade deficit by increasing exports.
Chicago payroll funds again exhausted after paying salary checks to firemen and police; Tribune reports no more money available until State Supreme Court rules on validity of emergency $12M bond issue.
Air mail terminals are becoming popular night attractions; crowds attracted by roar of motors, flames shooting from huge exhaust pipes, sudden blaze of light as plane takes off. Pilots often cater to public by buzzing the fields after takeoff.
Last year US made 842.8M pencils, 23.1M mechanical pencils, 248.3M pen points, 13.9M fountain pens, and 588,768 typewriters.
Teterboro, New Jersey has 11 officials, including mayor and 5 council members; voting population is 12, and total population 26.
Market wrap: Leading stocks worked gradually higher on low volume; grain markets also strong. Positive tone attributed to lower brokers' loans and constructive speechs by Pres. Hoover and Farm Bd. Chair Legge; “powerful bankers” also reported more optimistic on market. Some isolated weakness at midday in rails, Montgomery Ward, and Fox, but leading stocks resisted any pressure and worked upward into the last hour. Merchandising shares strong, led by Woolworth. Bond market increasingly active as day progressed; corp. generally strong with isolated weak spots; foreign issues stronger; US govt. narrowly mixed.
Bulls encouraged by rallying tendencies late Thursday, indicating support that came in at Tuesday's lows was still effective. Based on precedent in June, July, and August, a technical rally at least to a Dow of 225 was expected. Many prominent brokers also believe this is a good point to buy for long-term investment.
Large reduction in brokers' loans was taken as an indication of stocks passing to strong hands.
Recent increase in foreign buying reported, possibly due to instability abroad; some investment demand also expected from Oct. interest and dividend payments.
Salmon O. Levinson urges temporary suspension of “organized short selling” on NYSE as means to end business pessimism.
Economic news and individual company reports:
Pres. Hoover announces govt. expenditures for current fiscal year (June 30, 1930-31) estimated at $4.135B, down $67.9M from June 30 estimate.
Bradstreet's and Dun's weekly trade reviews: cooler weather over much of US enlarged retail and wholesale buying; however, seasonal gains remain irregular and short of vigorous revival. Sharp market fluctuation in week may be confusing the picture. Many lines of business showing more week to week irregularity than usual.
Youngstown District steel operations expected at 54% next week, unchanged; steel manufacturers less optimistic on continued price uptrend due to continued weakness in steel consuming industries.
Gasoline in Chicago wholesale market is 5 3/4 - 6 1/4 cents vs. 5 7/8 - 6 1/4 previously.
Company reports since July 1: 277 companies reported higher earnings vs. 1929 and 557 lower; 1297 dividends unchanged, 68 increased, 136 cut.
“Nervous Suitor - Mr. Jackson, er - I would like to - er - that is, I have been going out with your daughter for five years.
Parent - Well, what do you want - a pension?”
+ The Boring Stuff: