Assorted historical stuff:
Increased “dumping” of Russian products generally attributed to need for foreign exchange to pay for equipment with which to carry out Five-Year Plan. Decline in prices received for many goods and increased imports in first year of Plan (starting Oct. 1, 1928) has led to policy of exports at any cost and inflation of rubles. This may cause withholding of produce by independent peasants, who still account for most of harvest in spite of Soviet plan for socializing agriculture. Govt. considered “wedded” to Five Year Plan; “belief grows that on the fate of the plan the fate of Sovietism may well depend.”
G. Frank, Univ. of Wisconsin pres., says current depression not an indictment of the “machine order” (“array of processes by which we make goods and produce wealth”) but of the “economic order” (“array of policies by which we use goods and distribute wealth”).
Pres. Hoover says agrees fully with Senator Reed's proposal to suspend immigration for 2 years after July 1 to relieve unemployment; points out that recently tightened visa procedures on his orders have already reduced immigration from 24,000 a month to about 6,000 in Oct.
Pres. Hoover says no new Federal laws needed to cover “racketeering” activities of gangsters; can be adequately dealt with using existing state laws.
Frankie Dunn, “racketeer and late leader of the North Jersey beer-runners” leaves estate of $413,558, mostly in stocks and bonds.
New Chinese language “Pei-Hua” invented to consolidate hundreds of existing dialects; mixture of Mandarin and other Northern dialects. Language is compulsory in every public school; use is “expected to abolish the language trouble after a generation or two.”
A weather balloon filled with hydrogen recently released from Roswell, New Mexico was recovered 242 miles away in Texas; it had reached a height of 12 miles.
Market wrap: Substantial buy orders accumulated overnight following Monday's impressive late rally. Major stocks showed a strong tone through the morning led by US Steel and American Can, which hit new rally highs; good gains in other majors including AT&T and Consolidated Gas; merchandising shares and trading favorites strong. Selling on profit taking appeared going into the afternoon, encouraging “bear crowd to make a test of the market's position.” These operations kept the market heavy through the last hour; leading shares generally gave up their gains and worked below previous closing prices. Bond market more active, prices irregular; US govts. continued firm, near high prices for year; foreign govts. mixed; corp. irregular, with highest grade steady.
Market movements in standard stocks in past 2 weeks “have been under the domination of some of the most important and powerful industrial and financial interests. Their efforts have been directed toward stability, not only in the stock market, but also in various other directions.” While these interests don't desire any spectacular movements, they do believe a reasonable advance in stock prices is warranted.
Broad Street Gossip: Bull “tips” are on the rise; rumors have also been heard of new bull pools being formed in certain stocks, including some low-priced issues.
While there have been few signs of substantial improvement in business, “all reports indicate a better feeling in trade circles at present.” Local observers have maintained a better stock market might result in improved business sentiment; if this is happening now, “a long step in the right direction will have been taken.”
Car industry opinion mixed; while it's considered certain the first few months of 1931 will bring higher production, opinion differs on whether the increase will carry past the first quarter through the whole year; more conservative authorities say this will depend greatly on the reception given new models.
W. Gifford, AT&T pres., sees end of depression in near future, followed by a sustained period of prosperity such as the world has never before seen.
Economic news and individual company reports:
Oct. output of cars and trucks in US and Canada was 154,585 vs. 224,834 in Sept. and 394,540 in Oct. 1929; first 10 months was 3.215M vs. 5.269M.
Rail freight loadings for week ended Nov. 15 were 829,251 cars, down 52,150 from prev. week and down 153,675 or 15.6% from 1929 week.
First 19 rails report Oct. operating income 24.1% below 1929.
US Steel and large independent producers establish minimum sheet steel prices for Q1 1931, following recent similar action by Carnegie Steel for bars and plates.
Sen. Caraway (D., Ark.) proposes banning short sales in agricultural commodities; ban would not apply to “legitimate hedging” but to “pure gambling operations.”
Highest full page advertising rates: Ladies Home Journal $9,500; Woman's Home Companion $9,400; Delineator $9,200; Pictorial Review and McCall's $8,800; Saturday Evening Post (highest circulation) $8,000; Collier's $5,500; True Story $4,500; Liberty $4,250.
Companies reporting decent earnings: IBM, American Ice, US Gypsum, Scott Paper.
Biscuit makers generally have reported good 1930 earnings; attributed to “inelastic demand,” brand recognition, efficient distribution, and lower raw material cost.
“'How long will it take to fix that car?' Mechanic - I'm afraid it will take a long time, sir. That's the only job we have at present.”
“Reporter - Are you in favor of prohibition? Senator - Are you going to offer me a drink, or do you want a statement for the paper?”
+ The Boring Stuff: