Assorted historical stuff:
Pres. Hoover addresses AFL. Praises cooperation of labor and business after fall market panic, says measures adopted “served as a practical system of unemployment insurance”; notes public works and construction by rails and utilities in first 8 months was $4.5B vs. $4B in 1929; “a new and improved tool has been added to the working kit for the solution of our future problems.” Says some regulations that lead to destructive competition and instability may need to be modified. Praises scientific and labor saving development as gain to employers, workers, and consumers; recognizes problem of “technological unemployment” but believes new discoveries and inventions will absorb workers displaced from older industries.
NY Stock Exchange warns bear operators against “raiding tactics.” Article XVII, Section 4 of the Exchange constitution forbids buying or selling securities for the purpose of “bringing about a condition of demoralization in which prices do not fairly reflect market values.” Recent aggressive attacks on leading securities together with several recently circulated unfounded rumors have caused the Exchange's Business Committee to “decide upon a firm attitude.” Committee has warned members that all messages sent over private wires must be kept on file, and called several members in for questioning yesterday.
Uprisings break out in 4 Brazilian states; Pres. W. Luis declares “state of siege” throughout republic; banks in Rio de Janeiro closed for 15 days; banks in Santos and Sao Paolo also closed; coffee breaks to lowest price since 1915, and Brazilian coffee exchanges suspend trading indefinitely.
Prohibition Bureau estimates illicit liquor production in US in year ended June 30 at 876.3M gallons; estimates consumption at 40% of 1914 level.
British R-101 airship crashes [killing 48 on board]; Rear Adm. Moffett blames fire, loss of life on use of hydrogen, urges lifting of ban on exporting helium.
Scientific research is of increasing importance to industry, with corporations including GE, AT&T, du Pont, and GM maintaining their own research labs. Many important industrial applications began as pure research, some of it in these industrial labs. Bell Labs now researching “two-way television, color television, sound picture making, and research on the three-dimensional photo camera.”
Higher education suspected of discouraging marriage in women students. Of living graduates of Wellesley College, less than 1/3 are married at the present time; of 400 women just graduated from Northwestern, only 23 stated in a final poll that “matrimony was their preferred career.”
Atlanta sues to force Census to increase population from 270,367 to 360,692; Houston protests it would suffer great injury by being demoted to third city in South.
Market wrap: Stocks dropped sharply on moderate volume; attributed to reports of “serious outbreaks” in Brazil, to unsettled industrial conditions at home, and to decline of several representative stocks to new yearly lows “with unsettling effect on the entire market structure.” After early selling had spent itself, market turned dull and drifted irregularly on small volume, with little professional activity seen in either direction; disturbingly, trading dried up completely on any rallies. Some issues showed further weakness as session progressed including utilities, rails, insurance, Eastman Kodak, Allied Chemical, AT&T, US Steel. Bond market active and irregular; corp. bonds generally weak; US govt. firm; South American govts. down sharply, other foreign govts. irregular.
Harvard Economic Society says current business statistics are not reassuring though there's still time for normal seasonal gains to materialize.
Natl. Assoc. of Manufacturers annual trade survey reports signs of upturn; while slump in trade and employment has been sizeable, current favorable signs include reasonable level of inventories, wage scale generally holding, labor peace, and optimism found in survey sent to members: prospects for winter were called excellent by 2%, good by 18%, fair by 59%, and poor by 21%. J. Edgerton, President, criticizes “emotional proposals” advocating govt. solutions for unemployment as unworkable, praises Smoot-Hawley tariff as moving tariffs away from politics.
Dow closed at a new yearly low, and within 4.07 points of the Nov. 13 panic low of in 198.69. There was 1 stock at a new yearly high and 93 new lows.
Economic news and individual company reports:
Fed. Reserve member banks weekly report for Oct. 1: loans on securities up $22M to $8.483B, “all other” (commercial) loans up $79M to $8.530B.
Rails initially pleased about statement in Hoover's speech that rails should be assured of returns sufficient to maintain them in strong enough condition to extend relief in national emergencies. Upon further reflection, however, “the prospect of repeated requests of this sort from the government was not very cheerful.”
Class 1 rails net operating income in Aug. was $95.6M, a return of 3.38% on property investment, vs. $141.8M and 5.1% in 1929; first 8 months was $555.3M, return of 3.59%, vs. $828.4M and 5.48% in 1929.
American industries most affected by “five year dumping program” of Russia form temporary “Joint Conference on Unfair Russian Competition” to gather information; industries represented include lumber, matches, sausage casings, glue, coal and manganese.
Companies reporting decent earnings: Woolworth.
“Cashier - You will have to bring someone here to identify you before we can cash this check. Do you have any friends in town? Stranger - No. I'm a tax collector.”
+ The Boring Stuff: