- Market opened with many sell orders, prices declining through the morning with higher volume than last week. Attributed to bad business news (lower freight loadings, increase in business failures, Chrysler salary cut), anticipated bad second-quarter earnings reports, and lower commodity prices. Some buying appeared and declines slowed in afternoon on lower volume.
- Winthrop, Mitchell believes market is in much better condition after recent liquidation, believes stocks "getting near rock bottom levels", would buy many major stocks on further selling. They may go a little lower, but not worth trying to pick a bottom: "The long pull prospect of large profits is too good to be concerned about 5 or 10 point dips, which later will be regarded as only minor setbacks in a major upturn."
- Finch, Wilson, & Co.: “We believe that many stocks are now selling far below their real value and that purchases can now be made with a minimum of risk and a maximum of confidence of higher prices later.”
- Many observers believe Bears will attempt another market test in the near future. Response should be important to future sentiment.
- Leading British financial figures call for a tariff wall around the Empire, with duties on foreign imports and free trade within the Empire.
- Fiat announces plan to increase output, while an Italian tariff of 100% on autos is proposed. Market not sure what to make of it; no shares traded on the Curb Exchange.. “There has been talk from time to time that a big American automobile company was seeking control of Fiat.”
- At a recent large corporation’s stockholder meeting, the secretary was annoyed to find two men with no proxy forms. "Whom do you represent?" the secretary asked. "The short interest," the gentlemen replied.
- 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.”
- Chrysler announces 10% cut in salaries. Cut is being made to share the burden with hourly labor, which has already suffered a substantial reduction in working hours. Cut is being applied uniformly to all salaried employees from Mr. Chrysler on down.
What you have just read are real news but from 1930 as collected by this great blog
News from 1930 “Being a daily summary based upon my reading of the Wall Street Journal from the corresponding day in 1930.”
Times they aren’t a-changing!
