Assorted historical stuff:
J. Raskob, GM exec. and Democratic Nat'l. Committee chair., gave radio address presenting economic proposals including: adoption of five-day workweek by industry and celebration of all legal holidays on Monday; changes in FTC consideration of possible mergers; abolition of capital gains tax; removal of tariff from politics as far as possible; and referendum on prohibition. “In closing, let me say that no country in the world, not even our own, was ever in as splendid position to go forward and enjoy a period of prosperity as our own country is today. Everything has been thoroughly deflated and business is now turning upward. The momentum is necessarily slow at first, but within three months ... we will quickly leave depression behind.”
Civil Service Clerical Assoc. of London votes overwhelmingly in favor of compulsory resignation for women after marriage.
G. Hoffman of Agriculture Dept. finds price fluctuations in corn futures from 1924-28 corresponded closely with activities of group of 17 speculators.
Illinois Supreme Court finds margin trading in grains to be gambling and debts not legally enforceable.
Rumors persist that Congress will legalize beer, and possibly light wines.
Mustaches have come back into fashion in London so suddenly that wig makers are supplying artificial ones in all styles for men who can't wait to grow one.
NY City papers (Times, World, and Herald Tribune) raise Sunday edition from 5 cents to 10 cents.
Market wrap: Substantial selling came into the market early, with bears interpreting Saturday's late decline as indicating market was in a vulnerable position. Majors including US Steel, GM, and Westinghouse were forced to substantial setbacks from Saturday's highs, and J.I. Case had a further bad break to a yearly low. However, the decline steadily lost momentum as volume dried up, the general list showed resistance to isolated weak spots, and leading stocks traded in a narrow range at midday. “Bears obviously were intimidated” by this steadiness, and a rally starting in the afternoon brought urgent short covering; rally was attributed to possible declaration of extra dividend by US Steel today. Bond market dull, generally steady; rallies in Brazil govts. and some convertibles. And if
F. Patterson, Nat'l. Cash Register pres., meets with Pres. Hoover, says sees nothing discouraging ahead, believes we've hit bottom; points out cash register business a good barometer of general business conditions.
J. Rosenwald, Sears Roebuck chair., says recovery from current depression will be slower than 1920-21 postwar slump due to currently restricted immigration, lower auto production and roadbuilding.
The weekend brought no news of business improvement in steel or autos, and continued uncertainty in the general price structure was indicated by in crude oil price. However, recent stock price action has created growing opinion that unsatisfactory business conditions have largely been discounted.
Some more assorted 1929 high stock prices compared to now: US Steel 261 3/4 to 146 3/4; Beth. Steel 112 3/4 to 73; Radio 114 3/4 to 22; Westinghouse 292 5/8 to 103 3/4; Montgomery Ward 137 7/8 to 23 7/8; Sears 181 to 51 5/8; Glidden 64 1/8 to 10 3/8; GM 91 3/4 to 34 3/4; Hupp Motor 82 to 8.
Some stats on the 28 dividend paying members of the Dow average (of 30 industrials): The group as a whole is selling at 9.8 times average earnings for the past five years, with the multiple ranging from 2.5 for Hudson motor to 33.3 for GE. Average dividend yield for the group in 6.6%. Dividend payout ratio appears conservative at 71% of average earnings for the past 5 years and 53.3% of 1929 earnings. The group is selling at a 44.8% premium over the net asset value on their balance sheets; total net asset value is $7.950B and total market cap $11.516B.
Economic news and individual company reports:
Prince & Whitely, the NYSE broker that recently failed, ran a [theoretically separate] investment trust (Prince & Whitely Trading Corp). The value of this trust is now hard to determine because of its tangled finances, including claims by the trust against the broker, and holdings of unlisted securities.
First 51 rails report Sept. net operating income of $77.5M, up 10.2% from Aug. but down 17.8% from 1929 and down 19.4% from 1928. Sept. gross revenue was $335.6M, up 0.1% from Aug. but down 17.1% from 1929 and down 15.3% from 1928.
Fed. Reserve member banks weekly report for Oct. 22: loans on securities down $116M to $8.142B, “all other” (commercial) loans down $33M to $8.573B.
L. Crandall of US Realty & Improvement Co. reports heaviest volume of construction projects since the spring of 1929 has come to eastern office of large builders for estimates in past three weeks; seen as sign “business is emerging from the doldrums.”
US Steel to report earnings at directors' meeting after the close of business today.
Companies reporting decent earnings: Beech-Nut Packing, Mead Johnson (baby food), Standard Cap & Seal, McCall Corp (magazines), Telautograph (machines transmitting diagrams by wire).
“Judge - You admit you drove over this man with a loaded truck? Driver - Yes, Your Honor. Judge - And what have you to say in your defense? Driver - I didn't know it was loaded.”
The Big Trail - romantic US pioneer drama, “handsomely photographed on Grandeur Film, which is distinctly superior to the screen of ordinary dimensions for a spectacular picture of this character. ... John Wayne, who has the principal role in the story in this, his first film, acts rather amateurishly.” On the other hand, “Marguerite Churchill makes a charming heroine” and “Tyrone Power is a capital chief-villain.”
+ The Boring Stuff: