1934-11-09 — Page 3

THE HONGKONG TELEGRAPH.; FRIDAY, NOVEMBER

1934.

BIRD'S EYE VIEW OF DEPRESSION PIT

SHUDDERING DEPTH OF MARKETS' FALL

LOOKING BACK TO '29

New York, Nov, 2.

Five years ago Wall Street witnessed the greatest panic in stock market history. To-day the Stock. Ex- changes of the country are under federal regulation, trading has slowed down to a snail's pace, and speculators: -bored by a lethargic ticker-amuse themselves by re- calling details of the "Black Tuesday" of 1929.

It is easy to joke now about the crash that cut billions of dollars from security values within a few hours. The investment fraternity has long since accepted its losses philosophically, and five years of business depression have bred a stoical appreciation of bad news. But in the Fall of 1929 the wide-open break in the stock market generated a stark fear throughout the nation.

ed that it had been bad while it lasted, but that it was all over now, Official Washington insued more favourable statistics on bust.

The speculative fever of the Coolidge and Hoover prosperity swept stock prices to a record high early in September of 1920. There was an irregular decline duringness, the month of September, but hun dreds of economists, business men and politicians assured the country that the market was only taking a breathing spell before resuming its upward flight. Prosperity, they Bald, was here to stay.

But the decline was accelerated in the early weeks of October, and the nation began to be seriously worried. Everyone awned stock at that time, from lice boy to president. Most of them held their shares on margin, and as the market wenkness persisted brokers broadenst insistent demands. their customera for more money, A large majority was unable in respond and When their holdings

ult

Mr. Donald Richberg, Secretary of the Executive Council of the United States, and a right hand man of Pre- sident Roosevelt.

were thrown on the market forced sales prices dipped

mare sharply..

FEW DUYERS.

even

Then came the fatal Tuesday, October 29. The Stock Market opened with arouring wave of liquidation that assumed tidal pro- portions as the day grow older.

ENORMOUS LOSSES.

When the tickers finally stopped on the evening of October 29, the Stock Exchange reported the day's Fales as 16,410,030 shares, an all- time record for volume. Officials have since estimated that, includ-i Ing unrecorded odd-lot transac- Hons, the day's total was close to

200,000 shares,

'Another instance of the dreadful carnage wro, tght by fira in crowded Chinese tenements was wit- nessed when this Shangbal building burned recently and 14 were known to have pertibed out of a total of twenty inmates.

Unusual Dogs On Display

SALUKIS RUN AT EXPRESS SPEED

CRYSTAL PALACE

EXHIBITION

the

There is good news for amateur dog breeder--he is coming Into his own. The professional Despite a late rally that Bfted will have to look to his laurels. dones industrial average at the which opened at the Crystal Palace prices from the laws, the Dow The 73rd Kennel Club Show, cluse on October 20 was 230,07 t recently, was remarkable for the compared with 260.64 on the pre-uniter of entries of smooth-haire reding day. Losses of more than'

Fux Terriers. There were 248 of

30 points were common among them compared with the 152 wire such market leaders as Du Pont red terriers.

and Allied Chemical. Auburn For years past, he who has had Auto dropped 60 on the diny. the money could trini a dog to Jork General Electric lost 28, and US. like marble!

Steel closed at 174, of 12 points.

Perfect trimming has been the.

The excitement in the financial great asset of the show dog. His district reached a burning inten-lines could be "Inked." But this

sity.

yeur great breeders are reverting dog--and the amateur can compete to the pure lines of the smooth on an equal footing.

On October 30 and 31 there was a strong rally on the stock market, but the recovery was merely n prelude to the protracted decline

There can be no doubt of the that was to carry the Dow Jones lines of the new Weish enttle dogs, industrial average down to a low Duke of York has recently boug

the Welsa Corgis, one of which th of 41.22 on July 8, 1932, as against Far the first time the heunci Lut a high of 381.37 on September 3.vided these into two varieties- 1929,

the Cardigansture and

THE --

It is easy, at this perspective, to brukestare, suurter in nody and legs Bee that the stock market crash and ten reg-and-white in colour. and the subsequent business de- pression were inevitable: In. Use Fall of 1929, however, no foresaw the extent of the break,

ROCKEFELLER'S ADVICE,

the Saluki. For stamina and spers

Interest-in-douèsing-mas-DGORIC

These dogs are Baueakable. They run at over 40 m.p.n.

One of the beat dogs was alen The New York Times, in as

the heaviest in the snow, alrs. E, Onver & Cargnal of Jeningy, anti editorial on October 30 on the 1st, masia, champion of his class stock market panie, said that "if Une ut the Deal blenes present conditions are fulfilled. Ch. cylla, who weigna 61⁄2lb. This 1 cam sound and conservative industry little Lot-long. will not be shaken us it used to greyhound is not a toy-ang in day- Jyotiga, Itanam be on such ecensiona."

Mr. John D. Rockefeller Sr., who shunned personal publicity, never- thetess issued a stalement on Octo ber 31, 1920, in which he declared that fundamental conditions wore

therefore buying "Sound common storks,"

"There is nothing in the buri. ness situation," he added. "to warrant the destruction of values that has taken place on the ex changes during the past week."

thing but Hattle..

THREATENED KATE WAK

STEAMSHIP LINES AVERT CLASH

was recently revealed that

The situation was patently seri-sound and that he and his sun were stis on October 24. Buze blocks of securities were offered with few takers. Then Richard Whitney--- now president of the New York Stock Exchange-entered the scene dramatically. U.S. Steel common was being offered at 195. Whit- ney, acting us a broker and sumably on behalf of 3. P. Morgan Many of those "sound" common fears of an imminent fare-cutting. and Company, was said to have locks are to-day selling at one-war among the North Atlantic bid 205 for 20,000 shares of steel, third their price of five years ago, services have been eliminated as a

The story is probably apocryphal,

İyet even at these low levels the result of an 8-hours meeting of the but at the time it was enough to

averages are more than twice the North Atlantic Shipping Inspire a sharp rally. Priccaepression lows. The Dow-Jones ference In London. soared. A nation laughed, remark-

Industrial average at the end of

main business of the con- last month was 92,63, as compared ference was to discuss the position with 343.45 on September 30, 1920, of the Cunard-White Star Co., and 41.22 on July 8, 1932.

which, as the result of the umal- gamation, automatically excluded itself from the conference.

AVERAGE SALES.

The

Con-

More vivid comparisons with

Sir Percy Bates, chairman of the 1929 may be found in volume of line, was at the meeting with other trading. Nowadays brokers are after a long discussion he agreed. representatives of the company and glad when a day's salca on the to Cunard-White Star joining the Stock Exchange exceed a half mil

lion shares. Total sales September conference.

American and French members

last wore only 12,635,080 shares, were particularly anxious as to the the smallest for any month slice outcome of the meeting, for the 1921. In September, 1929, anles scene was set for a repetition of aggrogated 100,058,120 shares.

events of two years ago when the

With laurels already won as premier flyers in the American south west, these winsome sky vidors are on the trail of new honours, the goal being a new woman's rafitelling endurance record, corting over the Chicago World's Fair grounds. Jaan La Rene, is on the left and Mrs. Mary Owont Campbell, right. She in'n

licensed transport pilot.

Hopeful of vindication, Samual Insuli, fallan cear of a once highty utility empire, took, the first days of his trial in Chicago with smiling complaisance. The 74 year-old "fallen Crodive" is shown leaving Federal court, under police escort, during a rocose in hig trial with 16 associates on federal Indictments "charging use of *

malls to defraud.

FAVOURITE

MISQUOTATIONS

however, is to see ni orice that this Is not what Hamlet meant. He was referring to the Dane's habit of oxcessive drinking when, ho

EL What quotation is the most mis said:-

quoted? It has been suggested

Go back to September, 1929, United States line Bought to leave! when the market was near its peak, the conference and institute Here is what a few of the market lower scale of passage rates. leaders wore selling for then, to- gether with prices for the same strong move among certain mem- "A little learning is a dangerous It Is understood that there is a that the most abused is Pope's line, issues at the end of lust Septembers of the conference for a sub thing." Nine times out of ton ber:

stantial reduction in North Atlantic "learning" is turned into "know, Sept. 30 Sept. 29 fare, but this will be strongly ledge.” opposed in other quarters.

American Can

1929 1984

108

Amer. Smelting &

Refining

98%

112

293% 111%

34%

General Electric

General Motors

New York

270 420 164

51 201

Contral R.R.

U.S. Steel

Woolworth

188100%

American Tel. &

Tel. Atchison, Top. & A Czecho Slovakian film company la!

S. Fe R.R. making pictures with people picked Auburn Auto out, on the street and who have had Consolidated. Gas no training whatever, Hara is a Du Pont de

of the new "atare",

Nemours.

"To my mind-though 1 am

native here,

And to the manner born-It is n

custom

More honour'd in the breachi

than the obscrvance, This heavy-hended revel, cust

and west,

Mukasus tendue'd, and taxed

of other nations!

They cepe us drunkards.".

ht be the most common mis quotation,, it is closely run by Shakespeare's "More honour'd, in' Eastman Kodak 221 094 the breach than the observance.".

3584 18% But misquotation In this instance.

06

203

no consist in using a word not in the original but in giving

· There seems to be no cause for 224 the line wrong meaning alto dubiety about Hamlet's meaning. 23gether. Almost invariably, it la He merely meant that the custom 38% used to algeify that a custom or was so bad that it was moro 487% a law is more often broken than honourable to break it than to keep..

observed. To read the context, it.

Pennsylvania R.R. 101

21014

2221

97 United Press

PRICES BASED ON

THE NEW VALUE OF

1

THE DOLLAR

F

is not just a catch phrase but on actual statement of our policy. Our prices have been reduced all' round: hals are down by $1.50 to $2.50 each: Summit. Collars down by a dollar a dozen. Sum- mit Dress Shirts show at least a dollar reduction, and 50 on throughout the entire stock: and in no instance Is quality sacrificed.

We do not ask you to believe that we can adjust prices to every fractional fluctuation, but we have endeavoured to strike a liberal average on which to base Our current prices,

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