Assorted historical stuff:
A Washington correspondent: Concerns about election results are almost always overdone. Still waiting to hear “what there is in the ... background and record of Franklin D. Roosevelt to lead to the belief that he is about to become a red radical, instead of the vigorous and magnetic person Washington knew as Assistant Secretary of the Navy ... The course for Democrats in 1932 is plainly outlined and it does not include a radical economic program but the opposite.”
Henry Morgenthau, former ambassador to Turkey, says another European war imminent, in which US will be forced to take part. Proposes 5-year postponement of war debt payments to US, with stipulation that any country acting as aggressor in a war would lose deferment.
Rep. H. Fish submits findings of Congress. committee investigating Communist activities; reports at least 400,000 sympathizers in US; recruiting actively in southern black communities, textile, mining, and shipping industries.
W. Johnson, W. Virginia State Treasurer, calls for “hard boiled system” for controlling govt. spending; “Our governments are over-manned. A few years ago it required one person out of every 22 to administer our governments - national, state, and local, but today it is one out of every 10.” Calls for 25% cut.
Brokers feed jobless - H. Hentz & Co. set up “rolling kitchen” on Monday near W 31 St. to feed unemployed; 3,000 fed breakfast Tuesday.
Even with aid of tugs, a 1,000-foot ship needs a half mile of free space to turn around. When the huge Imperator made its first visit to New York Harbor and was turning around to get into its berth, the amount of space needed was miscalculated; she ran into a wharf, bumped other ships, and caused $45,000 in total damage.
Huge triangular parachute, designed to save airplanes when motors go dead or propellors break, tested successfully at Wright Field.
Art exhibitions now at galleries include Henri Navarre, known for his glass work, shaped by hand while molten; Chagall, whose “medley of strange shapes and pictorial combinations do please the eye”; a group of dog studies by Morgan Dennis; and the Munson collection of historic portrait sculptures in wax, including one of John Calvin thought to be the only likeness in existence, a study of the dying Voltaire, and an Egyptian wax funerary head from about 700 BC.
Market wrap: Bears exerted early pressure in attempt to extend decline, selling majors including US Steel and AT&T. However, powerful buying support came in, starting in US Steel, “representing reaccumulation by interests who liquidated in the early spring. ... Seeing this kind of buying in progress, the bears started a covering movement around noon”; prices generally recovered from early lows. Buying broadened in afternoon; major industrials worked higher; tire cos. strong on recent rally in rubber prices. Bond market mixed, volume below average; US govts. firm, foreign reactionary; corp. irregular, higher grade steadier.
F. Goodhue, Internat'l Acceptance Bank pres., criticizes bank practice of putting surplus cash in call loans on the stock exchange: “these so-called reserves in time of stress are apt to prove reserves only in name, not being based on self-liquidating transactions nor on securities eligible for rediscount” with Fed. Reserve. Practice of putting bulk of secondary reserves in call loans prevents Fed. Reserve from exercising its chief functions; banks continue it to avoid moderate loss of revenue.
Some fear that recent large number of bank closings will cause some liquidation of stocks held by the banks.
R. Stephenson, Amer. Bankers' Assoc. pres., says charges that credit extended for installment sales allows people to make committments beyond their ability to pay will persist until “agencies of consumer credit ... work out practices of administration which will prevent excesses in the extension of such credit.” Notes consumer credit has grown without setback up to now due to era of general prosperity, but “testing time is now here.”
Col. L. Ayres of Cleveland Trust Co. predicts 1931 to be year of progressive but slow improvement, conditions still below normal at end of year.
D. Friday, economist, says bottom of business depression reached in Oct. predicts 10%-12% recovery by spring.
Brokers report large increase in inquiries on any sharp multi-day rally; thousands of investors and traders seem to be waiting for “favorable moment” to buy stocks.
Economic news and individual company reports:
Co-receiver appointed for Caldwell & Co., collapsed investment banker; assistance needed due to scope of business, involving sizeable operations in 20 states. “Well-informed quarters” say National Bank of Kentucky failure due to Caldwell matter, not significant to national banking system.
Rail freight loadings for week ended Nov. 8 were 881,401 cars, down 53,239 from prev. week and down 167,567 or 15.9% from 1929 week.
Champlin, a small refiner, cuts midcontinent crude 10 - 20 cents/barrel; co. initiated last round of price cuts. Possible gasoline price war developing in Northwest.
Some price weakness reported in Southern scrap steel and iron markets.
Companies reporting decent earnings: Brooklyn-Manhattan Transit (BMT), Public Service of NJ, United Biscuit, Liquid Carbonic.
Stock market joke:
Question to the editor of Broad Street Gossip: The earth's age is set at 1.825B years and brokers' loans are at $2.235B. Soon, brokers' loans should be down to $1 a year for the age of the earth. Will the market then go up as the years increase? Reply - Ask Einstein.
“Maid - ... There are half a dozen men downstairs with vacuum cleaners. They say they have appointments to give demonstrations. Mistress - Yes, I sent for them. Put them in different rooms and tell them to get busy.”
“'Those girls look exactly alike. Are they twins?' 'Oh, no. They merely went to the same plastic surgeon.'”
+ The Boring Stuff: