Friday, September 11, 1931: Dow 127.30 -1.13 (0.9%)

Note: I only have time for a short version today, and probably for a few weeks to come, due to heavy workload

Assorted historical stuff:

"Powerful pressure" is reportedly being brought on Pres. Hoover by "high govt. officials as well as influential private citizens" to legalize 3% beer; it's argued this would increase Federal revenues by $300M annually. Proponents are optimistic of success.

Administration officials have reportedly concluded stabilization of farm product prices has been proven a failure; will now concentrate efforts on disposal of farm products at best price obtainable, support bank credits for farm exports; oppose acreage cutting as unsound.

Russia reportedly became the world’s leading wheat exporter between July and Oct., taking over the usual US position.

Republican-controlled legislative committees in NY State have decided to report favorably Gov. Roosevelt’s unemployment relief program with only minor amendments.

Market commentary:

Market wrap: A technical rally in the morning petered out by noon following omission of dividend on Rock Island Rwy.; this brought heavy selling into the rails; bears pressed for weak spots and "uncovered several"; moderate rally just before close. Bond trading featured sharp declines in Central European issues; German bonds hit record lows. Railroad issues reversed rally following Rock Island dividend announcement. Dow average of 40 corp. bonds closed at new yearly low. US govts. also declined.

[Note: These guys sure run hot and cold Dept.] "It has been many months since sentiment in the financial district was as predominantly bearish as at present."

“Important selling” reported in the bond market in the past few days; some of the liquidation is said to be institutional, particularly in the rails.

A number of investment trusts [similar to mutual funds] have almost stopped trading, largely because the market broke so rapidly in 1929, when buying was at a high level, “that the managers of the trusts had little opportunity to take such profits as were available and were not disposed to sell out at losses. ... Some companies, intended initially to be trading concerns, have become investors.”

Homestake Mining's recent sharp rally reflects popularity of gold stocks, which are benefitting from “relative value of gold in relation to the present deflated commodity prices.”

S. Strawn, US Chamber of Commerce pres., says responsibility for recovery “rests upon business men rather than upon the govt.” Can’t expect immediate return to 1929 prosperity, but by “courage and determination,” can “begin now to work our way back.” Opposes unemployment dole, favors Hoover plan for community responsibility; calls for liberal contribution by all employers who can afford it to unemployment relief funds now being collected across the US.

Economic news and individual company reports:

British emergency govt. proposes sharp tax hikes and spending cuts to close estimates budget gap of $826M; taxes increased on incomes, gasoline, beer, etc.; cuts in public salaries and the dole. Proposed new British income tax rate on single male earning $1,800 is $353.50 vs. $3.38 in US; on married couple with two children earning $5,000 it's $958.50 vs. $12.38. Top tax rate is 54%.

Renewed weakness in marks is causing concern though transactions remain very limited; rumors are circulating in Berlin of “impending inflation,” and the Reichsbank may be forced to support marks again.

US Steel unfilled orders as of Aug. 31 were 3.169M tons vs. 3.405M July 31 and 3.580M a year ago; total lowest since mid-1927.

Money in circulation Sept. 9 was up $57M to $5.092B, total Reserve Bank credit outstanding down $5M to $1.216B. Member banks in NY City report brokers' loans down $41M to new low of $1.325B; loans on securities to non-brokers down $6M to $1.694B. Money in circulation is up sharply from $4.533B at end of Aug. 1930; increase attributed to “hoarding of currency by individuals as a result of unsettled banking conditions.” Analysis of “all other” (commercial) loan figures shows recent rise in reported total is due to unusually large bill holdings; when these are excluded, remaining commercial loans are down sharply, to $1.888B as of July 31 vs. $2.236B at start of the year.

Private long-term investments by US citizens in foreign countries estimated at $14.9B - $15.4B as of end of 1930 (includes both securities and direct investment). Leading foreign country for investment is Canada, with $3.9B.

Chicago wholesale gasoline market has weakened substantially after reopening of East Texas oil area, with reports of sales as low as 4 cents/gallon.

Oats prices are lowest since 1897 despite smallest crop since 1921; “sellers’ strike” appears to be setting in similar to that in the Southwest winter wheat belt.

Rock Island Rwy. omitted dividend after cutting it twice this year; officers' salaries cut 5% - 20%.

Theatre:

Just To Remind You - Playwright Owen Davis has “shaken an impatient fist in protest against organized ‘racketeering.’” Play is set in modest 52 St laundry of Jimmie Alden, which is bombed and ruined because Jimmie won’t pay $100 a month for protection. “The subject of the play, however, by broad implication, is NY; by broader implication, the country.” Jimmie is encouraged by policeman Dan Costigan to stand up and testify against the racketeers; as he lies dying at the final curtain, Dan tells him “in earnest that the police have done the best they could. Jimmie’s last angry words are to the effect that that ‘is not good enough.’” Play also assigns blame to a “lethargic citizenry.”

Joke:

“Are you positive that the prisoner is the man who stole your car?” “Well, I was until you cross-examined me. Now, I’m not even sure I had a car.”

Thursday, September 10, 1931: Dow 128.43 -0.76 (0.6%)

Note: I only have time for a short version today, and probably for a few weeks to come, due to heavy workload

Assorted historical stuff:

Washington report: Administration officials seem less hopeful than they were three months ago that a tax increase can be avoided at the next session of Congress. Officials still say no decision will be reached for 2 or 3 months. While “no one ... wants to increase taxes before an election,” and “everyone recognizes that increased taxes ... may hamper a revival of business,” the Administration apparently considers it more important to maintain US credit, which may become of vital importance in a crisis [note: as was exemplified by Germany and Britain within the previous few months].

Editorial noting reports from Russia that grain farmers “must now go on short rations because their crop is unfortunately below original Five-Year Plan specifications. ... The Soviet govt. might consider whether it is not killing the goose that lays its golden eggs.”

Market commentary:

NYSE trading featured declines in a large number of leading shares; US Steel fell below 80 for the first time since 1921; some rallying took place from the lows, but it was “rather feeble.” Paris stock exchanges down sharply, continuing break that started last week; unfavorable factors include panicky conditions in other European markets including Zurich, Prague and Amsterdam, as well as British uncertainty and sharp breaks in int'l issues including Royal Dutch and Kreuger & Toll.

Public liquidation has apparently been increasing in the past few sessions, judging by increased business through commission brokers. Selling attributed to stop-loss orders and “frightened liquidation” even by customers who own their stocks outright.

Observers increasingly expect a strong effort to set up a test of the 121.70 June 2 bear market low on the industrials, since the recent decline has left “no clearly defined resistance level above the June 2 figure.

Twenty utility stocks listed on the NYSE and Curb Exchange [later Amex] are selling for an average of 15 times earnings [note: I believe this was higher than many stocks in the general list due to stability of earnings.]

E.F. Hutton notes that while some are bemoaning the drastic stock decline, a more optimistic way to look at it is that the stock-buying value of a dollar in Sept. 1929 has increased to about $2.85 in current purchasing power.

G. Gibbs, IT&T VP, predicts “slow but sure upward trend” in business after personal survey of conditions in 32 cities; says Pittsburgh and Detroit only cities outside NY where optimism hasn't started to reassert itself. Businessmen in other cities, while allowing business is running a little behind last year, believe conditions are sound, and cities are able to take care of depression victims without outside assistance.

Economic news and individual company reports:

After difficult negotiations, all creditor committees accept plan for 6-month extension of short-term credits to Germany.

Two large Geneva banks merged, reportedly after Federal intervention, after continued withdrawals from all Geneva banks “despite the official manifesto of national financial stability in Switzerland and the offer of a Federal loan to the Canton of Geneva.”

30% dividend is being mailed to Bank of US depositors; second dividend expected by early next year; final settlement estimated at 60%-70%.

“Organization of a general bondholders' committee to represent “holders of defaulted bonds of numerous smaller Florida municipalities” is being considered.

NY Lt. Gov. Lehmann, testifying at unemployment relief hearing, says NY faces $10M-$50M deficit, will be unable to balance budget without tax increases.

Texas legislature meets in special session to consider cotton acreage curtailment law. Gov Sterling says leaves it to legislature to decide on best remedy. Pres. Hoover and Fed. Reserve officials reportedly discuss creating banking credits for export of cotton.

NY Central cut annual dividend rate to $4, the second cut this year.

Steel production for week ended Monday was 28 1/2% vs. 31% previous week, a little under 32% two weeks ago, 56% in 1930, and 86% in 1929. Production slightly affected by Labor Day holiday.

Companies reporting decent earnings: MacMarr Stores.

Movie:

This Modern Age - Film starring Joan Crawford, at the Capitol. “Directed with a great deal of resource, ... but the story ... is as hoary with age as most scenarios about excessively modern youth seem to be these days.” Heroine experiences emotional crisis when she learns the magnificent Paris home in which she has been living with her mother, and “entertaining lavishly and drinking copiously with her gay young friends” doesn't belong to her mother but to a “Frenchman who is supporting her.” Happy ending ensues after some complications. “Miss Crawford's posing ... is becoming a bit too obvious ... but when she launches upon one of her big emotional scenes she can really act.”

Joke:

"What a lovely sunset. The sun sinks lower and lower.” “That's all right. I have no shares in it.”

Wednesday, September 9, 1931: Dow 129.19 -3.43 (2.6%)

Assorted historical stuff:

US Census statistics reveal decrease in number of children in spite of growth in population over past decade; children under 1 year fell from 2.1% of the population to 1.8%, whilc people 45-64 rose from 16.1% to 17.4%, and those 65 and over rose from 4.7% to 5.4%.

Editorial favoring Farm Board's 15M bushel sale of wheat to China as helping to reduce the huge surplus on hand without competing with producers of the current crop by selling to usual importing countries. In fact, advocates making "prices ... so low and terms of credit so super-liberal that the Chinese govt. would be induced to buy much more ..."

Yet another editorial on necessity for reparations and war debt adjustment; this one bemoans reports that Pres. Hoover may seek to link cuts in war debts and reparations with arms reductions, a political question which is likely to "drag its way through years of conference and negotiation" and which the US has a doubtful ability to influence; for example, France "has lately told us in unmistakable terms that only 'organization of the world for peace' will persuade her to so much as a moderation of her preparedness for eventualities." The debt question, on the other hand, must be tackled by July 1, 1932 to avoid a repeat of the recent crisis.

British Parliament convened in extraordinary session to consider drastic spending cuts and tax increases. Debate was caustic; Laborites vehemently attacked PM MacDonald's new coalition govt.; A. Henderson, Foreign Min. in the recently resigned MacDonald Labor govt., taunted MacDonald as a deserter. In his speech, MacDonald "caused something of a sensation" when he revealed how serious the financial crisis in August had been; said if loan had not been made, sterling "would have tumbled without control." Also said his own salary would be reduced $5,000 to $20,000; appealed to all classes to "go cheerfully ... over the hard, broken road along which our security, honor and well-being must be found." Britain's King George reduces own annuities 50,000 sterling from those granted by Parliament as "example in personal sacrifices as means of economizing during the present financial crisis."

Barcelona Mayor Ayguade says syndicalists have agreed to halt violence and resume work. Spanish govt. decrees citizens living in Spain dcan't hold foreign currency, in new move to steady peseta.

Italian Foreign Minister Grandi proposes immediate armament truce among all countries who will participate in the 1932 world disarmament conference.

Montgomery-Ward will shortly sell a new electric refrigerator called the Tru Kold, which has only 3 moving parts and doesn't interfere with radio reception.

Construction of John D. Rockefeller's $250M Radio City development estimated to take 10M 8-hour workdays; over 56,000 employed directly and indirectly.

Nevada now grants divorces after a 6-week residence by the plaintiff. On May 4, 1931, when the new law became effective, 83 divorces were granted in Reno. In spite of the required oath by the plaintiff that he or she has a permanent home in Nevada, successful plaintiffs generally board a transcontinental train immediately after being granted the divorce, and don't return ... until another divorce is desired.

The cactus has caught on in a major way in Poland; florists display dozens of cacti in all kinds and sizes, and instead of sending flowers one now sends the latest kind of cactus. At a recent wedding in Warsaw, the bride carried a cactus instead of the usual bridal bouquet. [Note: Hope no one tried to catch it.]

Market commentary:

Market wrap: Stocks opened under pressure upon return from the three-day holiday; weak spots included Steel, GM, and the rails. Selling picked up momentum in morning; stop-loss orders were caught in large numbers, and the tape ran two minutes behind. Selling lightened at mid-day but no rallies developed, and another wave of selling in the leading rails developed in the afternoon. Bond prices generally lower in active trading; heavy liquidation in many domestic issues; rails particularly pressured as institutions liquidated issues on concern they might lose legal status as savings bank investments. US govts. and highest-grade corp. steady. Weakness developed in German bonds. Grains reacted along with stocks; later wheat futures hit new season lows and corn fell sharply. Cotton steady. Cocoa futures hit new record lows. Copper held at record low of 7 1/2 cents, but with output running at least 40M pounds/month over consumption, outlook is poor.

The Administration responds to charges the US is hoarding gold, saying the buildup is caused by lack of confidence abroad rather than trade imbalances or action by the US; estimates flight of capital accounts for about $2B of the $5B in US gold holdings. Only solution is restoration of confidence abroad.

Economic news and individual company reports:

NY Banking Supt. Broderick assesses Bank of US stockholders $25/share to make up $25.250M of the bank's liabilities.

New corporate bond offerings in August were lowest since April, 1919; total was $55.0M vs. $174.4M in July and $235.2M in Aug. 1930. There were no foreign corporate bond offerings. Corporate totals (foreign and domestic) for first 8 months were $2.436B vs. $5.068B in 1930 and $7.554B in 1929.

Louisiana Gov. Huey P. Long says has assurances from 5 other Southern states they will enact "cotton prohibition" legislation provided that Texas votes total abolition of 1932 crop.

Germany is reportedly close to concluding negotiations for a loan to buy 16.5M bushels of US wheat; terms will be 3 years at 4 1/2%.

Austrian budget deficit for 1930 $1.8M, first deficit in 7 years.

East Texas restarted oil production Saturday on basis of 225 barrels per well per day; however, production in the area won't be allowed to exceed 400,000 barrels/day for 30-day period. W. Farish, Humble Oil pres., criticizes Texas Railroad Commission order as putting "a premium on unnecessary development" by not limiting drilling of new wells; predicts decision will lead to production of larger amount of East Texas oil than can be easily absorbed. J. Kessler, managing dir. of Royal Dutch Shell, says political situation of large part of the world threatened by overproduction of commodities including oil; oil industry has "duty to the world as a whole" to end overproduction by international cooperation. Gasoline in the Chicago wholesale market weakened to 4 1/4 - 4 3/4 cents/gallon.

Rail freight loadings for week ended Aug. 22 were 763,764, up 15,053 from prev. week, down 22.3% from 1930 week, and down 34.3% from 1929. New Haven RR cuts quarterly dividend to $1 from $1.50.

Holland Tunnel traffic in August set a monthly record for the third time in 1931, with 1.224M vehicles.

Olds Motor reports August increase of 19% in domestic sales vs. 1930, an improvement from the 16% year-over-year increase in July.

Companies reporting decent earnings: Amer. Gas & Elec. (doing better than the average utility holding co. due to its "good fortune in providing electric service only"), Alaska Juneau Gold Mining.

Jokes:

Customer - I chose a $25 suit, but you've charged me $26 on the bill. Tailor - Yes, I've added the postage for the threatening letters I shall have to send.

"I spent $25,000 on my daughter's education, and now she's gone and married a fellow that makes $1,500 a year. What do you think of that?" "Well, it's 6% on your money, ain't it?"

The Irregular Blather September 8, 1931

No Journal was published Tuesday, September 8, 1931, following Labor Day. See you tomorrow back in 1931!

Monday, September 7, 1931: Market closed for Labor Day weekend

No Journal was published Monday, September 7, 1931, Labor Day. I'm putting the week in review for last week in today's blog for consistency with other weeks.

Week in review:

Stocks suffered declines throughout the list, attributed to failure of expected seasonal fall business improvement to materialize. The Dow rail average hit a new bear market low in Wednesday's trading, and finished the week below 65, the lowest level since 1898; this disturbed sentiment since the rails have led the declines in the major bear market of the past two years. Unfavorable factors for the rails included bankruptcy of the Florida East Coast Rwy., dividend suspension by the Lehigh Valley, dividend uncertainties at other major rails, and poor freight loadings reports.

Disappointment on seasonal business trends centered on the steel industry, which had been confidently expected to show some increase in production as September approached but instead dropped back slightly to start the month; this disappointed even the more conservative industry observers. US Steel hit a new bear market low below 83, the lowest level in a decade.

Feature of the bond week was outstanding success of the Treasury offerings of $800M 24-year 3% bonds and $300M one-year 1 1/8% certificates at par; large oversubscription refuted criticism that rate on the long-term bonds was too low. US govts. were steady to firm throughout the week. Municipal bonds quiet but firm. Domestic corp. list featured sharp swing in second-grade rail bonds, which rallied early in the week but fell later; however, closing prices were substantially higher than the yearly lows established last week. High-grade industrial bonds bucked weakness elsewhere to rise on the week, while public utilities were steady. European govts. were generally steady, though German bonds fell Thursday when the stock exchange there reopened. S. American govts. erratically lower; unfavorable news included partial Brazilian moratorium and defaults by Chile, Peru, and state of Pernambuco, Brazil.

Wheat futures fell into new low ground. Corn worked irregularly lower. Cotton “developed easier tendencies,” falling below 7 cents again to start the week but experiencing small rallies thereafter.

Foreign currency market quiet and somewhat steadier. British Treasury reportedly has dipped into the new $400M US-French credit to defend sterling; it was also reported, but not officially confirmed, that “the British Prudential Assurance Co., together with a number of other insurance cos. and investment trusts, has mobilized some 100M sterling of securities in NY for the benefit of the British Treasury.” Berlin stock exchange reopened for trading Thursday under strict control; declines were heavy and orders unbalanced on the Thursday but appeared to settle down on Friday. Swiss francs rose steadily; “brokers are at a loss to furnish a satisfactory explanation for the movement in Swiss as ... the only reason for transfer of funds to that point is safety.” On the other hand, another safe-haven currency, Dutch guilders, surprisingly diverged from Swiss francs and declined.

Money markets passed through another dull week; rates were unchanged in spite of rise in currency circulation of $255M since July 29, to about $5B; Reserve credit outstanding rose $276M in the same period. “Funds are still so plentiful as to be able to soak up any unusual demand ... The credit structure is apparently in such a flexible condition as to be able to absorb huge expansion without affecting money rates materially.” US gold holdings rose $6M to a new record of $4.998B.

The Irregular Blather September 6, 1931

No Journal was published Sunday, September 6, 1931. See you tomorrow back in 1931!

Saturday, September 5, 1931: Dow 132.62 -0.52 (0.4%)

Assorted historical stuff:

Editorial: News that the $800M 20-year Treasury bond offering at 3% has already been oversubscribed is unsurprising, but will again be hailed by proponents of a huge Federal “prosperity loan” of several billion dollars as evidence investors stand ready to finance such a project. This would be a mistake; the demand for US govt. bonds reflects an abundance of capital seeking unquestioned safety; this status would be lost if the Treasury borrowed unmeasured sums to invest in prosperity “schemes.” Other departments of the bond market give ample evidence of the market's reaction to any perceived risk.

Editorial praising common sense of the New Hampshire Att'y. Gen. Davis in not classifying “grape block” as illegal under the state's Prohibition law (which predates the Federal one) even after the recent “grotesque Federal raid in NY.” [Note: grape block was apparently a solid brick of dried grapes, in some cases sold complete with a pack of yeast and a stern warning to keep the yeast away after dissolving the brick in water, lest the mixture turn into wine. This was not a small-scale business - according to the link, California grape growers increased their acreage about 700% in the first 5 years of Prohibition.] Davis found that he couldn't classify a substance containing no alcohol as intoxicating - while it does become intoxicating after some time when mixed with other ingredients, the same could be said for grains, apples, grapes, etc., whose sale is not therefore forbidden by law. “A little leaven of New Hampshire logic might have a salutary effect in the Dept. of Justice in Washington.”

Interesting letter from a reader. Calls T. Woodlock “the nation's foremost German 'reliever'” and argues against permanent cancellation of reparations, while accepting temporary suspension for economic emergency. Contrasts way the 4 main participants in the World War handled their war debts. the US and Britain maintained value of their currency, and are highly taxed to pay war debts. France “took a more rational view” and allowed the franc to depreciate, eliminating most of her war debt; it is now doing relatively best of the world's nations. Germany, by contrast, entirely eliminated her war debts outside of reparations (through hyperinflation), and took in several billion dollars of good money to boot from people who bought marks on the way down. Is it fitting now to “saddle our people and industries with Germany's share of the war cost,” putting her industries on a “much better footing than our own?” Under normal conditions, Germany would easily be able to afford reparations; permanent relief would make her “financially able to rebuild her huge war machine for the next war.” Woodlock in response argues that it's precisely keeping “the German people indefinitely in a condition of economic vassalage or psychological servitude” that invites “an explosion that will wreck not only Europe but also the civilized world.”

General strike in Barcelona reportedly has weakened position of the Republican govt.

Premiers of Australian states decide on compulsory conversion (to lower rate) of $51.5 in bonds whose holders had refused to voluntarily convert. A total of $2.435B has been voluntarily converted.

Egyptian Premier Sidky Pasha says Egypt faces appalling economic crisis which will worsen unless world cotton-producing countries work out common policy.

British coalition govt. now consists of 30 Conservatives, 12 Liberals, and 8 Laborites after appointment of 31 ministers outside cabinet.

Farm Board agrees on sale to China of 15M bushels of surplus wheat; will be on credit, and to be used exclusively for famine relief. China and Mexico at odds over anti-Chinese movement in Mexican states of Sonora and Sinaloa.

British attain speed of 405 mph in trials for the Schneider Cup air race scheduled for Sept. 12; France and Italy withdraw.

Market commentary:

Market wrap: Stocks opened with further moderate selling, again concentrating on the rails; NY Central fell to a new post-1921 low, and leading industrials were unsettled by a new bear market low in Steel. However, on the threshold of a three-day trading holiday over Labor Day, trading became increasingly dull as the session went on; some short-covering became apparent from traders evening up before the holiday, and the market showed some recovery from the morning lows, though the rally failed to pick up momentum. Some selling broke out in the final hour in public utilities including IT&T and Amer. & Foreign Power, but didn't spread to the industrials. Bond trading more active; prices irregular, with alternating declines and rallies in many issues. US govts. notably steady. High grade industrial bonds have gone against the general trend, showing rallying tendencies in recent days. Wheat, corn and cotton up moderately.

Reports are again circulating of substantial selling of US stocks from abroad; “some of the important financial interests in England” are reportedly bearish.

August was the smallest month in NYSE volume since May 1926; at that time there were 60% fewer shares and 20% fewer issues listed. The Dow averages showed an unusual divergence; the industrials gained 4.02 to 139.41, while the rails fell 5.26 to 68.18.

Several important dividend meeting are upcoming, including Western Union, New Haven RR, NY Central, IT&T, and Westinghouse. Western Union fell sharply Friday on reports their dividend might be cut. Dividend uncertainties are negatively affecting the market, but “the most depressing influence undoubtedly has been the failure of seasonal acceleration of business ... to put in an appearance.” Stocks showed resistance to bad news in July and August, “clinging to the hope that the autumn would bring an upturn ... Hence, considerable disappointed selling broke out when September set in without any visible signs of trade improvement.”

Economic news and individual company reports:

German stock exchange moved toward normality Friday, on its second day after reopening; trading was quieter and buying orders were as large as selling, allowing almost all selling orders to be executed. Exchange is likely to allow several quotes per day on each stock soon. Signing of agreement on extension of short-term credits to Germany delayed yet again; German bankers insist central banks agree to 6-month extension; "despite endless exchange of cables," no compromise found. German business failures in August were heavy, with total liabilities doubling from August 1930. Most foreign currencies declined against the dollar, while Swiss francs continued to advance.

Bradstreet's weekly reports some optimism based on seasonal upturn in some lines and hopes for improvement in others. Retail buying stimulated by back-to-school buying and start of fall styles; prices notably lower. Closeout sales of summer goods continue in many places, with goods drastically marked down. Women's and children's clothing, along with hats and shoes, are finding demand; household hardware and electric appliances increasing; fall clothing for men appears quiet.

Net operating income of class 1 rails in the first 7 months was $295.1M, an annual rate of return of 2.1% on property investment. Total was down 35.9% from 1930. 35 class 1 rails operated at a loss, while only the International Great Northern had higher income than in 1930, benefitting from East Texas oil activity.

New bond offerings remained very low this week, at $7.5M vs. $8.2M last week and $67.2M in 1930. All offerings this week were of municipal bonds. Rumors of flotation of large issues in the near future have died away.

East Texas oil area to reopen today, under supervision of State Militia. Output of field under the order estimated at 400,000 barrels/day. Oklahoma Gov. Murray expressed disappointment, saying "That will never do. They are losing their fight after they had it won." More advances in gasoline and crude oil prices took place in various US locations, mostly in the East.

Ford cut August vacation short by one week to resume manufacture of Model A; move necessitated by abnormally low inventories in spite of subnormal business.

Company reports since July 1: 196 companies reported higher earnings vs. 1930 and 608 lower; 745 dividends unchanged, 17 increased, 133 cut.

Companies reporting decent earnings: Electric Power & Light, Household Finance Corp., Tobacco Products Corp.

Theatre:

Cloudy With Showers - Rather saucy-sounding comedy set at women's college; a "young male instructor ... is daringly challenged for his views on women and sex" by an adventurous, yet logical pupil. Strangely, the play changes midstream from "saucy comedy, gaily intellectualized" to a "farcical mystery melodrama" when a murder is commited next door to the "strictly dishonorable" room in a roadside speakeasy where the pair have taken refuge from a storm. Happy ending ensues as the murderer is captured and the pair falls in love. "Can be highly recommended ... to people who are sure they will not be shocked when Miss Critchlow yanks off her dress in the speakeasy, very much in the manner in which a young woman once upon a time would have stamped her foot."