Assorted historical stuff:
Pres. Hoover speech marking 150'th anniversary of battle of King's Mountain [major Southern battle in American Revolution]: One test of our system of govt. is the practical results: US has more youth in higher education than rest of the world combined; compared to the most advanced European countries, US has double the rate of homeownership per capita, consumes 4 times as much electricity, has 7 times as many cars, etc. Equally important is intangible qualities - sense of freedom, security, confidence in future progress. Sees govt. involvement in business except in emergency as destructive of equal opportunity and tyranny through bureaucracy; business practices which would dominate the country for selfish purposes likewise destroy equality of opportunity.
Lord Barnby, former Fed. of British Indust. Pres., asks collaboration of central banks with Bank for Int'l. Settlements in conservation of gold as circulation reserve, sees this as means of ending declining values and world trade depression.
Editorial: Revolution in Brazil seems to have gotten off to a good start, having captured two southernmost states and three others. Investors are naturally concerned about safety of large amount invested there by countries including the US England and France. However it would be foolhardy for Brazil to repudiate these obligations since they can't live without foreign trade and loans. “The revolution may be regarded as similar to a presidential election in the United States, where an administration may be changed, but the government remains unchanged.” There is some concern that a military struggle may further damage the country's finances.
Henry Ford speaks in London, favors abolition of all tariffs and predicts within 2 years no Ford products will be imported into Europe, but all manufactured there.
Wm. Wrigley providing building in Chicago to give winter shelter for 2,000 men.
New Southern Air Fast Express airline to offer 19-hour service between Los Angeles and Atlanta.
Market wrap: Bears were notably absent at the market open, possibly temporarily deterred by NYSE's “pronunciamento against bear raids.” Moderate starting rally, however, brought a reappearance of the bears, “who pounded against one pivotal issue after the other,” starting with GE and AT&T. New yearly lows in these were followed by a “steady stream of liquidation” spreading to almost all sections of the market; many stop loss orders hit. US Steel was bear's next target; while they successfully forced it to a new yearly low at 151 1/4, it quickly rebounded; this was followed by a vigorous final-hour rally in the general list. Bond market more active, prices generally lower; some firmness in highest grade corporate.
“Many wild rumors have circulated in Wall Street recently concerning the standing of firms, individuals, institutions, etc.” Reports have been entirely unconfirmed, but have circulated widely and influenced trading.
Market was looking for results of the NYSE statement against bears; “there was considerable uncertainty as to just what action could be or would be taken.”
T. Girdler, Republic Steel Chair.: “Steel prices are touching bottom”; large buyers now placing orders for future delivery; “Prices of many steel products have dropped to a point where many large consumers themselves realize any further decline would serve no constructive purpose.”
F. Hulswit, Amer. Commonwealth Pwr. Pres., says co. will buy now for future needs; based on study of current conditions believes bottom of depression passed.
C Denny, Erie Railroad Pres., speaking to Traffic Club in St. Louis, says in his opinion business has passed bottom of the depression.
Economic news and individual company reports:
Rail freight loadings for week ended Sept. 27 were 950,381 cars, down 2,131 from prev. week, 252,758 or 21.0% from 1929 week, and 246,584 from 1928.
New bond offerings in Sept. were $424.0M vs. $202.8M in Aug. and $209.3M in Sept. 1929; first 9 months were $4.426B vs. $2.488B in 1929.
Farm real estate values were 115% of prewar level on Mar. 30 vs. 116% in 1929; attributed to large supply of land, lower earnings, and tighter mortage credit.
Steel ingot production in Sept. was 2.868M tons and 55.1% of capacity vs. 3.095M and 59.46% in Aug., and 4.528M and 92.35% in Sept. 1929.
Automobile output reportedly declined further in past week and is now approaching low of July-Aug. Rest of the year looks weak due to seasonal factors, though introduction of new models a month early in Nov. may help to some degree. Some of weakness blamed on reduced farm buying.
Companies reporting decent earnings: Consol. Gas of Baltimore, Scott Paper, Melville Shoe, National Fruit Products.
Kroger Grocery and S.H. Kress join Woolworth in announcing Sept. sales increased over 1929.
“The passerby stopped and looked at the man struggling vainly with his broken down motor car. 'Excuse me,' said the stranger, 'but perhaps I can help you. There are one or two things I can tell you about your make of car.' The owner straightened himself up and looked at the other. 'Please keep them to yourself, old chap,' he remarked, warningly: 'there are ladies present.'”
+ The Boring Stuff: