Assorted historical stuff:
Off-year election coming up in Nov. not expected to give Democrats control of the House or Senate, though they may gain more than in the usual off-year due to dissatisfaction with the economy.
Royal Bank of Canada Oct. letter advocates restoring prices to 1926 level [well above 1930 level] and stabilizing them there; disagrees with view that period of general price deflation strengthens business structure - “a period of decreasing prices has always been marked by widespread unemployment” and labor unrest.
Farm Board asks FTC to investigate “insidious campaign” against the Board by its enemies.
Provincial report for Bengal (largest and most populous in India): 83% of population agricultural, using 86% of available land; 6M people farming 31M acres, most live at subsistence level. Many suggestions made to increase agricultural productivity and attract long-term capital.
J. Mooney, GM VP and manager of exports, calls for recognition of Russia as necessary for development of normal trade relations.
A. Pinkerton, head of detectice agency, dies at 54 from effects of gassing in France during World War.
Strands of wire in the 4 suspension cables of the new Hudson River [later George Washington] Bridge, if placed end to end, would reach halfway to the moon.
Henry Ford now owns the Wayside Inn once frequented by Longfellow (Tales of a Wayside Inn, including that old midnight ride of Paul Revere); Mr. Ford drops in occasionally to see how things are going.
Market wrap: Stocks opened firm but then “developed sagging tendencies,” reaching new lows in many sections; volume was low most of the day. Signs of further bear pressure on leading stocks, particularly US Steel; rally attempts were weak and possibly due to short covering. Stocks drifted lower; however, “impressive resistance” developed at the lows with trading drying up and the tape halting frequently between transactions. Coppers and utilities weak. Poor sentiment was attributed to bad business news including declines in car loadings and steel production; this “offered little incentive to trading activities on the constructive side.” On the other hand some bear activity may have been deterred by the recent campaign against bear raids. Bond market generally weak; South American govts. sharply lower, heavy liquidation extended to other foreign govts.; US govt. steady; corp. and convertibles down.
An optimist reports looking at cars on the road and finding almost all needed a new tire or two; similarly for shoes, “and so it does all the way down the line from automobiles to the end of the alphabet. Everything wears out. You and the other 121,999,999 people must buy soon.”
W. Procter, Pres. Procter & Gamble: "In our opinion we have passed the bottom of the curve and business is slightly but unmistakingly better and in our opinion will continue to improve slowly."
Conservative observers keeping customers on sidelines despite lower prices, say “the market will indicate when it will be profitable to adopt the long side again.”
Use of stop loss orders has become more popular and may be intensifying breaks in the market.
Odd-lot (small) buying has markedly increased lately; considered good technically since stocks are paid for outright and removed from floating supply.
Economic news and individual company reports:
US electric output for Aug. was 7,879 GWHr, down 6% from 1929 and largest decline this year; first 8 months output is still above 1929 level; manufacturing areas showed largest declines while farming areas showed continued increases. Hydro was 32% of output, lowest this year, due to drought.
Steel ingot production in Oct. 6 week estimated at 56.5% vs. 60% previous week; US Steel 61%-62% vs. 65%; Sept. order spurt seems to have petered out.
Iron Age reports price weakness in both finished steel and scrap. American Metal Market sees no visible prospect of increased steel production for rest of year.
French foreign trade has declined through this year; first 8 months had imports of 35.0B francs and exports of 29.3B, vs. imports of 39.6B and exports of 32.8B in 1929; Aug. figures were 4.1B and 3.1B, lowest this year.
Dept. of Commerce says cable and radio reports received indicate trend to economic improvement in Europe and Far East, while South America is unchanged.
Ford passenger car registrations in first 8 months were 871,366 or 41.3% share of market, vs. 972,608 or 32 .8% share in 1929.
Agriculture Dept. volume index of agricultural exports for Aug. was 87, highest since Jan. and above Aug. 1929 and 1928 figures.
Companies reporting decent earnings: Procter & Gamble, General American Tank Car, Continental Can, Q.R.S. Neon Corp.
“A bobbed haired waitress, very much out of sorts, sailed haughtily to the table at which sat a grouchy customer. She slammed down the cutlery, snatched a napkin from the pile and tossed it in front of him, then, striking a furious pose, snapped 'Watcha want?' 'A couple of eggs,' growled the customer. 'How you want 'em?' 'Just like you are.'”
Bill “Bojangles” Robinson appearing at the Liberty Theater in musical comedy about adventures of a company of black soldiers in the World War. Cast includes “some of the nimblest dancing talent in Harlem ... Mr. Robinson seems to find it as easy to dance as the audience finds it easy to watch him, although one of his arms at present is in a sling, due to a bullet wound, the result of mistaken identity. His dogs do not bark; they purr.”
+ The Boring Stuff: