Assorted historical stuff:
Seven Democratic leaders make conciliatory statements; pledge cooperation with administration in promoting business revival; promise to abstain from “rash policies” and say business “should not be frightened”; say will limit tariff changes to those recommended by economic experts; praise Fed. Reserve Board.
Editorial: Gesture by Dems. is sincere, but may be passing: “Before an election politics is at its height. The men in the heat of the fight honestly regard the opposition as either fools, criminals, or both ... Once the ballots are counted ... the pendulum swings to the other extreme ... even the politicians are eager for a rest from politics for a time.” Statement is still encouraging since it suggests Dem. leaders will curb the wilder schemes and more radical proposals of some of their party members.
Col. A. Woods summarizes reports on unemployment from governors: main problem is in Great Lakes and US industrial centers; almost all states reported they're “stimulating public works and pushing ahead work which had been planned for a later date”; general feeling is to provide work for unemployed rather than relief.
W. Melville, Pres. of Melville Shoe, sends telegrams to 508 store managers saying positions are secure, urging them to buy for future needs.
Editorial: People may disagree on the meaning of Tuesday's elections, but one result is absolutely clear: public sentiment against Prohibition is rapidly increasing. People are starting to understand “morality can never be accomplished by law.” Instead, the effects of the “noble experiment” have been seen in “an increase in crime, the placing of almost unlimited wealth in a criminal class, and the spread of drinking among young men and women. ... People have been revolting against our prohibition laws; the elections show the revolt is changing to revolution before which this legislative tyranny must fall.”
Dr. L. Wilson, Mayo Foundation dir., calls for establishment of $200M endowment for cancer research, diagnosis, and treatment in 20 large US universities.
Law against importing rabbits into Australia has been revoked, and fancy fur-bearing varieties of the Angora and Chinchilla type are being imported in great numbers in hope of establishing a new industry; “some of the bucks are valued at $1,000 each.” It's hoped the common rabbit can be exterminated or “crossed with his aristocratic fur bearing relative and thus changed from a pest to an asset.”
New Brunswick provincial officials warn motorists to drive more carefully after several accidents involving moose fatalities.
Gov. H. Caulfield of Miss. orders investigation of lengths of trucks and trailers after his car is forced off highway; rigs said to often reach 60 feet in length.
Market wrap: Rails came under continued selling pressure; leading industrials were firmer in early trading but selling became general in second hour; Southern Pacific, New York Central, and US Steel hit multiyear lows while GM, Radio, du Pont and Bethlehem hit new bear market lows on heavy volume; utilities also came under continued pressure. Bond market active and irregular; US govts. firm, foreign generally steady, corp. of all grades continue downtrend.
Week in review: Further drastic declines following Election Day holiday; all Dow averages well below fall panic levels; active banks stocks generally at lowest levels since 1928; considerable investment buying seen but overwhelmed by large scale forced selling in impaired margin accounts. Bonds generally down on moderate volume; only govts. and highest grade rails resisted pressure, and many corps. were down sharply. Money slightly tighter but rates little changed. Grains break to new season lows; wheat only 1 1/4 cent above record 1906 low. Cotton sagged in midweek but recovered later and stayed above season lows. Steel output continued lower; prices slightly weaker. Oil production down, price cutting continues. Rail traffic seasonally higher.
The past two months' bear market has been one “of the most severe, as well as one of the most aggravating, declines in the history of the Exchange.” The Dow has declined from 245.09 to 174.38, with almost no interim rallies in which traders who bought on breaks could sell at a profit. Causes seem to have been tax selling and liquidation due to poor earnings and dividend cuts; however, if trade reviews are accurate business is not much worse than is was on Sept. 10. Some investment buying is seen, but selling has outweighed it; consensus is the decline can't last much longer, “but the Street has been thinking that way for the last several weeks.”
Broad Street Gossip: Patient investors will, in the long run, make a lot of money buying good stocks at current prices. Some people are in fact doing this, as seen in record numbers of shareholders in US Steel, AT&T, GM, and others; “The little fellow has been getting in on the ground floor while the big fellow with the big income has been busy seeking ways and means to cut down his 1930 tax payments.”
Executives in wide variety of industries agree future earnings will depend mostly on sales volume, since costs have been cut as far as possible.
Dow made new post-panic low. There were no new yearly highs and 261 new lows.
Economic news and individual company reports:
Irving Fisher's index of 200 commodities for week ended Nov. 7 was 82.2 vs. 82.4 in previous week and 93.3 a year ago.
Report of Committee on Petroleum Economics to the Fed. Oil Conservation Board recommends additional 7% cut in oil industry operations; also suggests industry measures beyond production curtailment, including restriction of drilling and plant expansions, and unit (cooperative) operation in new development areas.
Reports from Paris state Oustric banking crisis has passed and the banks and brokers involved are of minor significance. However, heavy withdrawal of balances from New York and London to France has continued for the past few days as French banks attempt to increase confidence and prepare for any emergency.
Rail freight cars ordered in Oct. were 3,291 vs. 565 in Sept. and 17,207 in Oct. 1929; first 10 months were 36,428 vs. 83,397.
“A teacher in a Lagrande (Oregon) school asked for pupils to tell who the world's smartest man is, and give the reasons. One urchin suggested Thomas Edison, 'because he invented the phonograph and the radio so people could stay up all night and use his electric light bulbs.'”
+ The Boring Stuff: