From July 8, 1930
"US car accident deaths in 1929 hit a new high of 33,060, including 81 on Independence Day." (US has about 250M registered cars and trucks now vs 27M then - US 2006 number was 42,642.) "
From July 10, 1930
"P.K. Schuyler, pres. Federal Bridge Co., says automotive demand for roads and bridges has far exceeded capacity of government construction. "Traffic moves along the existing highways at a good speed for some five or 10 miles, then when the highway enters a congested area there is a considerable delay encountered, particularly on Sundays and holidays." Cars are now dependably capable of 60 to 80 miles per hour, "yet these speeds can be used only at infrequent intervals." Calls for more private construction, particularly of toll bridges."
From July 12, 1930
"In spite of current overcapacity in steel (production at 60% of capacity), the industry leaders including US Steel, Bethlehem, etc. are still investing in expansion. “It would be a poor country if the big industrial leaders threw up their hands and quit on every little depression” [TW: this seems to be the attitude prevalent in China at the moment, likely with same resulting overcapacity problems]
From July 17, 1930
"Editor: "We can feel for a certainty that business is scraping along the bottom along with most commodity prices, which should begin to firm up due to the marginal producers finding the going difficult and finally being eliminated ... The great American public is not so badly off as some people would like to have us believe."
"France proposes "United States of Europe" federation. Britain cool to the idea, but it's probably workable without them. However, German participation would be essential. German response "conciliatory in tone," but raises some big obstacles, indicating desire for revision of the World War peace treaties, "including, presumably, alteration of certain of her new boundaries and removal of the treaty restriction upon her military establishment."
Showing posts with label This Week In 1930. Show all posts
Showing posts with label This Week In 1930. Show all posts
Friday, July 17, 2009
Friday, July 3, 2009
This Week In 1930 (cont.)
From Saturday June 28th, 1930:
"Scaffolding has been removed from the tower of the Chrysler building, allowing unobstructed view of the world's tallest structure."
From Monday June 39th, 1930:
P.E. Crowley, pres. NY Central railroad: “I cannot believe that this country of ours, with its great and resourceful population ... can long remain in a state of depression, business or otherwise. I believe ... that we have turned the corner; that we will slowly but surely go forward to at least as great prosperity as has ever before been attained.”
From Tuesday June 30th, 1930:
New York Governor Roosevelt calls for system of unemployment insurance; says 90% of unemployment is not the fault of the worker, but cautions against insurance becoming “a mere dole which encourages idleness;” says line must be drawn against any person who refuses to accept an offered position.
Editorial: D.M. Marvin, economist for Royal Bank of Canada, says present depression caused by tight credit; points out that in spite of low rediscount rate many banks are not lending due to poor balance sheets; total credit extended by the Fed. Reserve banks fell from $1.621B last Oct. to $937M in June. Proposes Fed. Reserve banks inject $500M of reserve credit by purchasing government securities. Idea is worth considering, but must be done with care to avoid inflation.
[TW: now this one sounds familiar!! And bottom line is 80 years later we still don't know if this stuff works or not!!!]
From Wednesday July 1, 1930:
Bill Robinson [Bojangles], Harlem's greatest tap dancer, appearing in the Palace Theatre. Has been performing for 32 years. Famous for inventing new steps, such as the stair dance. So many performers are now imitating the stair dance that he's now doing his own imitation of himself doing it."
"Scaffolding has been removed from the tower of the Chrysler building, allowing unobstructed view of the world's tallest structure."
From Monday June 39th, 1930:
P.E. Crowley, pres. NY Central railroad: “I cannot believe that this country of ours, with its great and resourceful population ... can long remain in a state of depression, business or otherwise. I believe ... that we have turned the corner; that we will slowly but surely go forward to at least as great prosperity as has ever before been attained.”
From Tuesday June 30th, 1930:
New York Governor Roosevelt calls for system of unemployment insurance; says 90% of unemployment is not the fault of the worker, but cautions against insurance becoming “a mere dole which encourages idleness;” says line must be drawn against any person who refuses to accept an offered position.
Editorial: D.M. Marvin, economist for Royal Bank of Canada, says present depression caused by tight credit; points out that in spite of low rediscount rate many banks are not lending due to poor balance sheets; total credit extended by the Fed. Reserve banks fell from $1.621B last Oct. to $937M in June. Proposes Fed. Reserve banks inject $500M of reserve credit by purchasing government securities. Idea is worth considering, but must be done with care to avoid inflation.
[TW: now this one sounds familiar!! And bottom line is 80 years later we still don't know if this stuff works or not!!!]
From Wednesday July 1, 1930:
Bill Robinson [Bojangles], Harlem's greatest tap dancer, appearing in the Palace Theatre. Has been performing for 32 years. Famous for inventing new steps, such as the stair dance. So many performers are now imitating the stair dance that he's now doing his own imitation of himself doing it."
Saturday, June 27, 2009
This Week In 1930
TW: The 1930 WSJ headlines are too ironic to only dip into once. We have a new feature for Saturdays for awhile at least- "This Week In 1930". The thing that impresses me most is how the rhetoric has barely changed over the past 80 years.
From June 24, 1930-
"J. Westerfield of the NY Stock Exchange lectures civics clubs of Yonkers on the causes of the current business recession. Says the effort to attribute it to any single cause is superficial; criticizes sanguine statements of “new era” economists that “the vast amount of reliable statistical information had practically abolished the old-time evils of large inventories and overproduction.” Concludes that an illusion grew popular that “paper profits in ... quoted values for real estate, commodities, securities, and other forms of property increased fortunes and thereby spending power.”
Current speculative sentiment is bearish, but the conditions are there for a strong bull market in the future. While commodity price decline is serious, many are selling for record lows or below cost of production, which can't continue forever. Inventories are low. Wages have not gone down with deflation, leaving workers with more buying power. Businesses generally have good balance sheets and are operating efficiently; those that need to borrow can do so cheaply.
From Wednesday June 25th
"Oregon voters in November will decide on a Constitutional amendment outlawing manufacture, sale, or possession of cigarettes."
From Thursday June 26th
"Washington officials will be looking carefully at whether the record-low 2.5% discount rate will revive business. So far easy money hasn't affected the credit picture much, with demand for commercial credit continuing down. However, the lower rates and longer duration now in effect should give a fairer test. Also hoped that easy credit together with lower commodity prices will encourage businesses to restock."
"Conventional wisdom is that stock market moves anticipate business conditions, so stocks should go up soon if predictions of a fall improvement in business are true. Skeptics note that the market kept moving up last fall even though business started turning down in July. "
From June 24, 1930-
"J. Westerfield of the NY Stock Exchange lectures civics clubs of Yonkers on the causes of the current business recession. Says the effort to attribute it to any single cause is superficial; criticizes sanguine statements of “new era” economists that “the vast amount of reliable statistical information had practically abolished the old-time evils of large inventories and overproduction.” Concludes that an illusion grew popular that “paper profits in ... quoted values for real estate, commodities, securities, and other forms of property increased fortunes and thereby spending power.”
Current speculative sentiment is bearish, but the conditions are there for a strong bull market in the future. While commodity price decline is serious, many are selling for record lows or below cost of production, which can't continue forever. Inventories are low. Wages have not gone down with deflation, leaving workers with more buying power. Businesses generally have good balance sheets and are operating efficiently; those that need to borrow can do so cheaply.
From Wednesday June 25th
"Oregon voters in November will decide on a Constitutional amendment outlawing manufacture, sale, or possession of cigarettes."
From Thursday June 26th
"Washington officials will be looking carefully at whether the record-low 2.5% discount rate will revive business. So far easy money hasn't affected the credit picture much, with demand for commercial credit continuing down. However, the lower rates and longer duration now in effect should give a fairer test. Also hoped that easy credit together with lower commodity prices will encourage businesses to restock."
"Conventional wisdom is that stock market moves anticipate business conditions, so stocks should go up soon if predictions of a fall improvement in business are true. Skeptics note that the market kept moving up last fall even though business started turning down in July. "
Subscribe to:
Posts (Atom)