The Courier News from Blytheville, Arkansas on October 22, 1934 · Page 3
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The Courier News from Blytheville, Arkansas · Page 3

Blytheville, Arkansas
Issue Date:
Monday, October 22, 1934
Page 3
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22, 1934 When the Market Broke BLYTHEVII,LE, (ARR.) COURIER NEWS 'Continued From p.ieo One) '•™-. Yet in the next year another miaou dollars valuation WAS blown into United stales Steel. The mar- to value or Anaconda was pushed «|> from 438 million to 1,260 million. Another two billion dollars °r credit was pumped Into wall Street. The average of those fitly I leading slocks was driven up to 311.1 If stocks were too high in October, 1928, when the average level was 230, wliat could be said for Ihem a year later when they were 311 and when brokers' loans had already devoured another two billions of credit? In July a premonitory shiver had swept tlu-ougli Hie market. Hut this checked no one Through tlic summer brokers speculators, bankers, corporation managers, Investment trust managers journalists and propagandists sat purling away at Hie tubes which fed air into the swollen bubble. Ami so in the summer of j 02 9 j became convinced that the break was nr-ar ai hand. * * * being- so it was obvious that certain things must immediately and necessarily happen when the break came. Here (hey are. First, speculation is done with borrowed money. It formerly came .wholly iron, bunks, uut a new- source of credit had developed. It was called bootleg loans. Billions were loaned by large corporations and private persons directly The Standard Oil Co. of New Jersey had "s much as $90,000.000 ; n the'mar- «t in a single day. The Cities S»r- vice corporation's loans were as high as $240,000,000 in a single day Here was a real peril. If a break were to conic banks could be depended on I 0 behave rationally and to proceed in an orderly .protect their loans. way to If necessary they might even increase credit" But'these bootleg.lenders, unfamiliar with this new business, could »e depended on at the first sign of [rouble to demand their money ft was clear, therefore, that ir a break came from natural causes that break Toiild be immediately exaggerated by the frantic withdrawal of bootleg money. Second, stock sales tire handled tliroiigh the Stock Exchange The Exchange is a machine made up of human and mechanical parts Like all machines it has a load "mil. A vital part in that machine is the ticker, without it you cannot tell what the market is' If U falls behind-the -speculatin" p'-'j- ic is left in the dark. Thc tickers had fawn perfected to handle ; volume or n million or two shares .a day. But/between 1021 and 1928 - the volumtt-Mracnhgliad JncreYsed 400 per tent; In 1029 It'increased another 33 per cent. In have boon lucky to got one. In 1020 for 1125,000. Seats on (lie New York Curl which sold for $3,750 In 1021 were priced nt 20 times (hat figure. New exchanges were organized. And now us Wnll Street was lorn by the panic, nil the. little bourses were similarly renricd. The Chicago wheat pit, ' o f course promptly Joined the panic. The forces set hi motion on October 23, law. on the slock cxclianae v mve never in tlicse five years ubiit- :d. President Hoover told the :ountry over and over that fundamental business was sound. He •ailed together Ihe captains ot In- Instry on November 30. They ns- sured the country that all was well. Mr. Julius Barnes, the head of tile President's conference, announced hat the storm was over In April. Mr. Henry Pord raised wages. Mr. Jimmy Walker, not lo be outdone, • his own pay Iroin 525,000 to When the bottom dropped out, of the financial world . . cerec lliroiigs stnjid oiiteirie (he New vork Stock Exchange (right) where!.- Bcwitderec transpiring the Great Crash of October, 1020. day the ticker would TOr six wecks-in the fall behind. summer of 1928—sales were nine 4,000,000 shares a clay. ticker wns aim Tlie some days as mucV lost habitually behind. h as 38 minutes. it was also clear that If a bootleg monev break canib and took to night and res em- em- a veal disaster were to ap- lllclt ' radi "g rise (o ten nr rse o ten m lhc.,1 shares a day. I p rKllct<Kl (his then and the stock exchange onc. officials indignantly" scouted "lea. But I felt certain that ten million • the ivraiu" i ", " clays tllc ticji «would break down altogether inrf the Exchange and the who), speculating public would be left in to- thal If a break occurred, with bootleg lenders in wild flight and the tAcnangc m darkness, we would have something resembling „ theater with its lights out and the cry or fire in the air. These dire forebodings wholly kept from the public, were fuinilc;! in the fullest measure. When a Darning drop in shares occurred In .•eutcmtisr, foreign lenders of bootleg money began to withdraw it Who,, the shock of October 23 hit ,.„ n ' arkc '' "x^ "ootlcg funds ucre already in mil night. BJHJO,,.; > p re drawn out of the market in a 'lew days. Op October 2-1, stock sales 1'" 1° ?. a '« W ' 6 « shares. On Ocl, n ''- »later Richard Whitney said the t r 'r'"! 1 , bCr tr11cletl '» a « lost ihe delusion that because a ma knows how to nuke rr.oney he al> understands everything else. \n; ticularly the ohrciiru anci IKJ'SHT 0113 law.'; or economics. Besiilw, is a chcrLshcrt legcm! thai \7a Street moves under the domsnio of certain powerful masters. An no it was supposed that Eomelm ior the moment th" wild horses o the market liail gotten out, or |i;,n but thdt presently the litans won! seize hold of the reins and pi things right. Thursday, tile second flay of th storm, -word Mashed lo the wor: that Charles Mllciiell, president t the National City Ban 1 .:, iiad en ed the ofBrc- of j. l\ Morgan fc , Then Albert H. Wiggin and othe great men were seen '.o enicr Ilia squat citadel of money an,! powe- where the Morgans were suppose to rule the world of nna;ir:e. Th litans were gathering. A feclli went up 'that they knew what 1 ' do' would tlo it!' Then an the 'announcement that the had raised a fund of a liisivjred lion to support the market „„ stem the tide. Old" John D. Hocke feller was held up before the terri fkd mob of speculators much a the infant heir of the monarch i exhibited on the palace balcony t calm the revolting populace. Th old gentleman was made to an nouiice that he and his son wer buying good common stacks—p.- haps United States Steel at 195- which promptly sank to IQ.J. T the crowds outside the Exchaii-e f muffled roar came. Richard Whit ncy, "Morgan's broker," Iiad ap peared on the floor and bid 205 fo 2,1.000 shares or Steel. Another bro kc r offered to take a million shares or Standard Oil of New Jersey Th technique of the rescue crews thei was the old trick by which they hao o i!" 1 , 1 the mari:el - up-uallylioo Ballyhoo to make people buy. The Get Rid of 3 n 30, the Exchange did no onon until noon .-,„<, wllc ^ ,f "^ at three o'clock it remained c lo c I until U* following Monday The machine had broken down' The Exchange knew of the in adequacy or its ticker system and was busy installing a m .-, e ^^ one. That has been completed since, but It still cannot Handle [en million share days. Another Ingrained American c'e- liision played its part in those dDys i was that llic disaster was so:nc- llilng business men unucrstool The fciMt-mnn theory Li lii.stoiy «h! C |i t-arlysle popularized was in lull -— i 11 " 1 il W!!S ™in|)llCiital with SIDE-AFFECTS HEART rr stomncn OAS proi-enk slccp- »R on right side try Adlcrlfea. One dose brings ml polsolw and P&W '" °" "' ' ™mn » f ""'"*; «» "IglU. City Drug Store and Klrby Bros. 13rug Co. — Adv.L-3 Chills and Fever: To conquer Malaria, yon must cli two lliinss. (j) Dcstro'v ihe infec ion m the blood. (2) fjuild up th, blood to overcome the effects .TIC la fortify against further ail u-S.- There Is one medicine tha'. does hcse two things and that i (..roveo Tasteless Chill Tonic 1 Th nttcless quinine in Grove's T.isie tsa Chill Tonic destroys the. ma! inr.l Infection in (he blood uhil «e iron builds tip the blood. Thou •umls of people have conquered una with the aid of Grovj's •iRMclcss Chill Tonic. i n ndciilio. ic beinc; a noted remedy fc-r Mai- ana, it 1S also an excellent tonic of ceneral use. vrove's T-\-li>lrss Chill Tonic Is pleasant to u -! ^ contains nothing hnrmful. '"fiVcji cl'fiu"'^ hkC i 11 "'"' " lc - v can lnlie I safely For -sale by all drug stores Now (wo SIZCE-SOC and si Th- si Mzc .J°»' ni " s »» times as , au *h the soc size nnd gives you ^5< iv for your money. —Adv. Dr. Floyd D. Howfon, Dentist Announces the open- of an office for dental practice in the Lynch building on South Broadway. wondrous bargain counter sprea< out before tlie American people v,-a> advertised by business men a n L statesmen—Great Liquidation Sale of Stocks—Were 250, now ins. The catch was that before the blurb was cold on their lips the bargain ha sunk to 180 or 1GO, or maybe 100. ippcning in a smaller way ,„ over the country, when the greai Vesuvius in wall street blew of 'ts top, the shock sent all tlie llttli volcanoes in spm 0 thirty other cities into eruption. The speculatlvi nania Iiad s]>rend to every ex .' 1B29 it cost $28,000, i,, 0 , Francisco you could have boiipht "it in 1D22 for S13.00I). You Slock Prices on Octobers '\mcrlcnn Smelling nml noniiing Amei-lcm, Telephone and 'I Auburn Auto «<'thlrh,v m stwl ...,..'..'.', Cliryslcr Corp ....... Coiisolidutc,! (las ...'.' ' l) - iiisoiiu'iy Ward w V(,,-k cvntrnl «. Steel - H. Siiu-lllng and lieiinini,'' Bnl all (he time prices continued -emorsciessly to sink. The storm vhich began October ?i, broke again October 28. December 12 nn- lher crash rocked the mnikct. By Jlirlstmus stories of widespread un- 'mploymcnt were being whispered •ibuut. Up to then there vvns no ccosnltlon that this was anything' nore than the puncturing- of a Bam- Jler's boom, nut now we began o Item- about cities which could not >orro\v any more money. Chicago's 0,000 teachers were golni; without pay. Towns began to raise runds for the relief or the ix»r— the new 1'oor in the Isind which only a year More was talking about abolish- if poverty forever. Hut even this was smothered in the gi:sl of optimism which filled the skies as the New year dawned -the old promises of bl"gcr and better business, the usual gaudy greetings. There was not the slightest notion that we were entering one or the creat rc-monldlng epi- Eodes of history, -an era which be-fore it ended would sweep into poverty or exile or Ihe discard most of the rulers who then snt In the places or power in business and the state; which «-oul<l set conservative' America to questioning all its Institutions and which, : imvo „„ doubt, will take a place in history ml" the expulsion of Persia by the Greeks, the conquest o f Rome- the rise of Chi-istTimity, the reformation nnd the rcnnnisance,. the American nnd French revolutions, the industrial revolution and the grcnt war Voluntary Program to Be Conliiniccl Regardless o( lunkhead Act's Falc. Five Years A| Closing Oi'l. 1, 10 J 9 292 US ;t.fl 218 3-1 221 3-1 -in 1-1 r ==^^^S art PnVrs Orl. 1, 1934 2] M 31! 1-i U5 1-2 ...., , . , -..L......V,,, (luu L[le ^rcai war, What happened in New York was as one of the great episodic lurniim finrvnTiiii., :,* .-. n-_. .. ns\I»i_ : . i_ _ _ A '»• m> nnijj zation. TOMORROW: Vears. D - i^'uiuiiiL (he rollg |, istory Sccrclnry of WASHINGTON, r- Agi-iciilUire Henry 'A noiim-,.,1 Sunday that (he"cotton acfJUMmcnt program would con- Uiuie into t|, 0 1W5 M[lsoa .,,„,,. announcement was niiulc In o-rtcr that the more i, 1(ln oaf mmion cotton farmers who : ,ig,, c d 19m nnd 19:15 cotton contracts can proceed with their farming plans for (!>e next season with mil assurance that the voluntnry cotton ncljuslmcnt program win be made elective for 1935 under the terms of the two-year contracts. It was emphasized by olflclals of the Agrlctiltuml Adjustment Ad- Ui«t the secretary's minoiinecmein dirt not constitute !!; f " n " 1 " Piwlainntlon which ihc cotton contract remilres. it is n-vitiuuice that by December isncli » JHoclnnmtion will be issued. The contract sinned by cu'tton producers Is restricted lo the 193-1 season "unless the secretary shall not inter limn December i, 1934' proclaim his purpme. ol contlnu- iiW tlie Cotton Acreiujc induction I'lun for 10;i5." H is further provided in the contract that such proclamation shall stale (ho per- iHagc of reduction required tor 11*35. Will I'mnlt Uirficr The collon section ol the cultural Adjustmc-nt Adnilnist'rn PAGE THREE tiou Is engaged In developing tlio tlcialls ol tlio isias proBi-nm. These Include the ainormt or reduction I" ucre'nee lo ue required niid the innoiinl and manner of renlnl und rnvlty pnyiiienUi to be made. Thc complete details of the I9U5 ml- Justiucn. iirournin will ue announced us soon us they are completed and approved, it wna staled. Urnlcr the terms of the con- Inicts with, producers, (lie ninxl- iHini ncreeiu; ri-ductlon which cnn )c required Is 25 jwr cent ol the base nercuijc which is Hie average or the live years, 11KM-UM2. It wiis lolnted mil Unit since llils com- wiiv* wltli u 35 (o -15 per cent Tducllon below tho base iici'dige his yi-iir, which avc'riiacd 40 per •''lit, it means Hint contruct slgn- •rs nuiy plnnt an average ot at csl as per cent more acres In •olton In 1935 (linn llicy planted lib yenr. As nn cxiimpte, n con- raft Mlijncr with n base acrcfltio of 100 crcs who ])!n]ilcd Co ucres of cotton under his contract for he 1031 K'uscn may plant nt least "' acres next year, the 15 acre tails of the 1935 program were, being developed as rapidly as pos- lC, - : 'We arc cnnvnsslng the entlro situation." Mr. Cobb said, "nna obtaining nil ttic availnWc dalu n» (ho outlook lor domestic and forelj-n coiuumptlon. The details ol the 1035 program will he based IIIKIII this thoroujjii study ti, at )s now under way. lectors which we (Continueu on I'nge 5w) COUGHS Don't let them get a strange iiold. Fight them quickly. Crcomul- slou combines 1 helps In one. Powerful but harmless. Pleasant to akc. No narcotics. Your own drug- list Is nuthoitel to refiii'ci your noncy on the spot If your cough or cold is not relieved by Crco- inilsion. _ A ,f v . i Hi-reuse being 25 per cent more hail this year's planting. ,. . „ ' ,' ivc i-uy /in ixksses wun n Kiniie" C. A. Ocbb, chief ol thu cotton [Jmnes IS. Clark - Maker Wilson n-ixlucllon fccllon, stated that dc- ^^^^^^^^^^^^^^^L For HEAL Protection . Phone 101 CLANK-WILSON AGENCY Qcncru! Insurance. 'We Pay All Losses With a Smile" HARP/ HOURS FOR WALTER «,,d BETTV with CHILD LIFE... THEDFORD'S AUNT GRACE WHITES 5HE IS SENDING BLACK- DRAUGH. , FAM/LY LAXAT/Vf too*,WALTER/ -tur POSTMAN UAS SOMETHING LOVELY PicrunEs AND COLOR.S / Vou Can Have This Fun, TOO Sp,d.lOff. r G«tCliitdLi/«Nowl 5 Mo., for J) Chilled By Frlgldnlrc Sufc - Sanilury Tint - 7c Quart -, GIUIGS DAIRY Phone 74 FARMERS BANK & TRUST CO. INSURANCE BEPT. eeu built : 3l Englnnd an<\ 0 be put or, the market on a commcr- a*. MONDAY 1VEDNESDAY SATURD.VY nOSA NINO CKF.IB PONSEI.J.R MARTINI STUECKCOM) KOSTKI.ANCTZ OlinillSTKA AND CHORUS 0 I\ M. (<:. S. T.) —COI.IMIWA smoke a great mmy Chesterfields.. v morainrf, floon and ni^lit - r ' ^ „ & tne same The Chesterfields you're smoking now are just like they were last year or any other year—because we always buy the right tobaccos — uniformly ripe and mild. arc milder: . they taste better.

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