Assorted historical stuff:
Editorial: Pres. Hoover recently emphatically rejected the idea of the Federal govt. taking over “suppression of local racketeers in a dozen cities.” By sheer coincidence, Mayor Walker appeared the same day as a defense witness in a trial involving sale of a New York judgeship. Rackets are made possible by shortcomings of local police and “outright venality of some of the lower state courts.” In a score of cities, rackets “bear with particular cruelty upon the small business man, who cannot afford to buy adequate protection and is without the political influence to obtain it.” Pres. Hoover's declaration “serves notice upon the city political machines” that they can't use the smokescreen of Federal responsibility. It also usefully reminds the rest of us that we get the government we deserve.
In spite of promises of political truce, some statements that might be interpreted as political attacks have recently been made by officials of both parties.
Rep. Strong (R., Kans.) urges Pres. Hoover to support his bill authorizing the Fed. Reserve Board to use its funds to avoid deflation as far as possible.
Count Guiseppe Volpi, a prominent Italian public utility executive, currently visiting US to discuss state of Italian electric power industry. Attributes tremendous progress in production and consumption of electricity in recent years to aid of the Fascist government, which has helped it to develop “on sound and natural lines.” Total output of electricity in Italy in 1929 compares favorably with that of any other nation in Europe; consumption in first half 1930 was up 14% from 1929; equipment in use is most modern and compares in many respects with that in use in the US.
S. Baldwin promises first act of the next [British] Conservative govt. will be emergency tariff on all manufactured goods.
NY City Emergency Employment Committee contributions now over $2.5M; about 10,000 heads of families have so far been put to work at wages of $5/day.
Market wrap: Trading was slow in the pre-holiday session; while much of the session was extremely dull, such activity as did crop up was on the down side. Bears said encouraged by weakness in leading shares late Tuesday, resumed “hammering tactics” for first time since recent recovery. Traders also had to digest reported declines from last week in steel production and freight loadings. While selling volume was small, liquidation was observed in brokerage accounts and leading stocks worked persistently lower as the session went on; declines grew sharper toward the close. Bond market moderately active, prices generally weaker; almost all classes showed mostly declines, including foreign govts. and highest grade corp.; US govts. relatively strong, with some bonds at yearly highs.
A “stubborn short interest” still exists, consistently selling on rallies; while some short covering goes on during reactions, “many of the recent successful bears still are maintaining their short position.”
Observers now expect a renewed test by bears of the early Nov. lows following the Thanksgiving holiday. However, recent investment buying has “by no means been exhausted,” and buying should become more aggressive if the early Nov. lows are approached again.
Good scale support has come into the market in the past few days; buying has come “from important interests that had taken profits at or near the highs, apparently because they did not desire to have the market move ahead too rapidly.”
Recent rally has still not recovered much of the last decline; the Dow lost 73.49 points from Sept. 10 - Nov. 10, and only gained 11.51 in the rally since then.
Brokers' loans have declined so much that some brokers are now reportedly lenders instead of borrowers of money.
Reduction in steel production in past week wasn't considered disturbing since trend hadn't been expected to improve until mid-January, when a gradual uptrend was expected into the spring on rail, auto, and structural demand. However, drop in freight car loadings of 52,150 for week ended Nov 15 was unexpectedly large.
K. Collins, R.H. Macy executive VP, says intelligent advertising to stimulate public buying will be one of most potent factors in relieving the business situation.
Economic news and individual company reports:
US Steel ingot production for week ended last Monday was at 45% vs. 47.5% prev. week and 70% in 1929; independents were at 37%, vs. 41% and 68%; industry total was 40%, vs. 43% and 69%. Definite improvement seen starting Jan. based on scheduled auto production, construction, and rail equipment inquiries.
Rumored steel price advances haven't materialized, but recently set minimum prices have been holding well, though scrap prices are weaker.
Public utility bonds in default increased $49.2M to $285.0M in year ended Nov. 1. Most were traction (mass transit); defaults rare in gas, electric, or water cos.
Ten of the 70 Arkansas banks that closed this week have now been reopened.
First 41 rails report Oct. operating income up 7.3% from Sept. but down 24.5% from Oct.1929; revenues were up 3.5% from Sept. but down 19.3% from 1929.
Companies reporting decent earnings: Crown Cork & Seal, Chesebrough Mfg. (Vaseline).
The Work of the Stock Exchange - “Commencing with a history of security markets in general, dating back to the Roman Forum, the volume briefly describes the establishment of the Stock Exchange in 1792, and its development down to present times.”
Pressing Business - Comedy set in the cleaning and pressing establishment of Goodman & Small; main storyline is romance between Ben Goodman and Peggy O'Day; features four of the cast members from Abie's Irish Rose.
Angna Enters - creator of “many striking costume-pantomimes in dance form” offers her annual series of performances; her “forte is mimicry of an unusually satiric nature.” Numbers this year include a burlesque reminiscent of the Isadora Duncan school of dancing, and two Elizabethan dance creations - “Shaking of the Sheets” and “Daunce We Praunce We.”
“A bricklayer said to a foreman on a new job: 'I'd like to work here, but I can't find a place to park my car.' The foreman replied: 'I guess you won't do. This is a high class job, and we only want bricklayers who have chauffeurs.'”
+ The Boring Stuff: