The Courier News from Blytheville, Arkansas on October 24, 1934 · Page 8
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The Courier News from Blytheville, Arkansas · Page 8

Blytheville, Arkansas
Issue Date:
Wednesday, October 24, 1934
Page 8
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•PACE ElfiHT Made Wall Street Tremble BLYTnEVFLLE. fARFO COURIER "Bear Scare" ot Early Depression Days Resulted in Sweeping Invcsligalion John T. Flynii, hi Ilir Hrsl two of his slv lurid, uncfcrrstaiiiHiig articles on "Wall Slrcct ami the l)c- prosslon/ 1 lias revh'UTil the collapse of the boom and revealed ", , its ciuises. Today he fells the rr- markable inside stury of tin' origin of (he Senate invi'stl|:atloii of America's tilth flimicc mid lilgh lln- ancltrs. .• • « * t BY JOHN T. FLVNN • Copyright, 1034. NBA Service, Inc. NEW YORK. Oct. Z-l.-Tlirough : '; 1831 as the depression deepened, . men got to turning more nml more angry glances at the New York Stock Exchange. That mood culminated in tlie now fani&us Investigation conducted by Fcrillii- , and Pccora. I have followed, I think, most of the great Inquiries of the Senate through almost their whole history, and this was beyond a doubt the greatest and most potent of them all in Us consequences There Is n popular notion that this investigation was one of the activities of the New Deal and that It was launched against Wall Sliest by President Roosevelt. This, of course, Is far from the .truth, us we shall now see from this little Inside,story ol how the ; great probe came about. . For far more tlinn a .century the New York Stock Exchange had done business without let or hindrance. It began In the early days . of the republic when a few gentlemen mel dally lo trade In the securities of the government and of n few banks. From (lint It grew to he the most powerful single business Institution in the world. Its long history is a story of turbulence, of feverish gambling, . of "men and stratagems In pursuit of easy riches, nut in the end it wound its tenlncles around banks, Investment companies, corpora- lions and even the government, of the United States. Various attempts have been made lo lame II, Once when the present Chief Justice Hughes was governor of New York he named a commission to study, it. But it turned out to tic n white-washing commission. Then under Wilson the famous money trust investigation by the l>ujo Committee and conducted by Samuel Unlcimyer ..went into the performances of the Exchange. Later n bill «-ns introduced to curb it. Hut the war ended that fight as It ended so many other, forward-looking movements then under way, : '.':..'.''•• • * * * Then as this depression became more bewildering and people got to crying for a visiml devil, n clamor went up for the blood ol the "money changers" in Wall Street. It was a. slrange cry. The wrath was not directed so much at the sins of the Exchange in the old bull period, but at the part it was now supposed to piay In depressing prices and prolonging the depression. In the Senate, Brookhart and .Tom Heflln thundered. But in the summer of li)3i more conservative souls began to exhibit apprehensions. Business men In New York declared that bcnr raiders— short sellers who were unloading shares—were demoralizing tlic market and infecting the whole nation with new infusions of gloom. Finally oil July 10. 1031, President Hoover launched a bolt at the "raiders." He charged that the manipulators were driving the markets down and thai tf these gentlemen had a sense of patriotism they would close out their manipulations nt once. The President had come to believe that all Hie measures he had set in motion to end the depression were being wrecked by lack of confidence and that this necessary confidence was being murdered by the Stock Exchange. Tliere is no doubt that Wall Street operators were active on the bear side Matthew Brush, Tom Bragg, Ben Smith, the late Percy Rockefeller and many smaller -fry were busy. A group of big business UK-neon- Democratic Committee. There was of course, no truth whatever In Hie rumors connccllngiBariicli and nnskil) with llio vnlnV, ,BU" it Is easy to see wlint a eaniijj stroke - ... -— ~"i"*«i ,•>[. It would have been to have lorlcd these gentlemen. Through March a scries of ,uni , , — •• ^*.uu:> ol shocks shook the market, numora of pools, bears, conspiracies, filled the ah: In the early days of April therefore, the President, through Senator Walcott of Connecticut, vho hud once been a stock broker Introduced n resolution to li " Kate the practices of buyln, wiling and borrowing and Jc-mni oi listed securities and the effect, upon the business and banking or Ihc coiuiliy. The plan was to hold a few hurried meetings, bring a few of the big traders Including liariich and Raskob to Washtni;- ton, put them on the grill, expose them to the execration of the multitudes and then adjourn. But fate decreed otherwise 'Hie pan was well timed during ti, c absence of Senator Peter Norbeck Insurgent Republican and clnir' m>n of the Banking Committee. Norbeck read of the resolution, Washington and Morgan was a kind of sanctuary I" Wall street. It had been loo power/ill for either governors, bankers or even presidents to menace. The presence of investigators on the books of J p Morgan & Co, gave Wall Street a sinking feeling, in the midst of this Ihc fateful day of the Inauguration arrived and with II, as the Today's Markets WEDNESDAY., OCTOBER 2 ,(, M034> New York Cotton NEW YORK, Oct, 24. (UP)-Cotton closed steady. ... L.i, t >i.-,, ami \vun it, as tnej closing chapter of Herbert Hoov- Oct - er's nnfoi-tiinalc regime, every bank ' DBC In America had to be closed I Jan But the Investigation which had I Mllr - bnen launched to besmirch a few Mfl V Wall, street, politicians had dc- J "'y velopcd Into the greatest probe of " ' our financial world in history The credit foi- this must be given to a man whose name is seldom mentioned In stories of the Investigation — Senator Peter Norbeck of South Dakota. This alone is n'lMil saved U from suppression "lien high low close • 1224 1235 1224 1235 . 123) 1239 1230 1238 . 1230 1243 1235 1242 .. 1239 1247 1236 1246 .. 1242 1251 1240 mi 1245 1255 1243 1253 closed steady at 1205, iijj lij New Orleans NEW ORLEANS, Ocl. 24 (UP)~ Thc cotton market was steady to(day bounced rorware Senator Norbeck may | about 75 cents' a bale in one of ,„ i.!!;. '! rcs f"! e U V U the bMl da l's Uw local market seen in several weeks. Norbeck read of rushed back to lie shadow or Pccorn falls over "The Street: fcrrcd nlioiil organizing n movement In Washington to provoke im Investigation. One ot them nu- pronclied me will) n proposal to lake charge of Hie movement. About tills time 0,110 of our lead- lug IndiUiirlnU&L-: met one of the boar rnlclcrs In the Madison Square Club following a big fight and denounced .him. They almost came to blows. These big executives claimed they were spending millions In advertising to stimulate confidence and llmt these bear raiders were destroying all lo make n few nlore millions. • « 1 As Christmas, 1831. dawned the Bloom was pretty thick. The Austrian Credit Anstnlt had failed in September. Hoover had granted the German moratorium, England had gone off the gold standard and the nation was swept by a lldnl wave of bank failures — a thousand In Uircc months, still the bears kept up their raids. I never believed these raids were forcing stocks down. The whole business structure was fulling apart. Nobody wanted to buy stocks. And Hie tern were taking advantage of this to clean up by means of short selling. Of course, they certainly weren't doing the market any good. Early in I932 reports reached the cars of Herbert Hoover that among the- bear raiders were certain prominent democrats . "'Sl-vtl Wnlcoll am of control or lie hearings. Norbeck announced Hint he would Investigate tile icars, but that tills was going to )c. an Investigation of Wall street from stem to stern. And that announcement sent a tremor of terror through every slock --c.xchan-e and every shaky bank In the United States. From April to June 1932, and then from January 1033' fight iij) to the Inauguration .or' President Roosevelt the committee hammered away. There had been a succession of counsel. But finally Senator Nocbcek, Republican chairman of the committee, eivaiicd Ferdinand 1'ccora, a New "Vork lawyer, to conduct the Investigation. This was n stroke of good fortune for the nation and from the moment of Pecora's assumption of control things began (o happen. Ily the time President Roosevelt was inaugurated, Pccora hml alendy amazed the country'' with the exposure of Charles Mitchell president of Ilcrnard Bnruch -among John J. Rnskib, Ihcn chairman'of; the National ', Clly Bank in New York, one of the Brest banks of the world. Ho drove Mitchell from the headship of the bank. He shook the conscience of the people with the-: : astounding story, of the manner In>-* which a few big financiers a'nd promoters had used the resources of a great bank to feather their own nests. When the New Deal was launched Mitchell's*head was already In Mr. Pecora's basket and Pecora's in- vesllgntors were swarming'.' Into Wall street. .- •>. . * * +'."•' That spring the. news < '.went nrounci that accountants wefe in the offices of o.- p. Morgim & Company. This was almost Wibb ( j , ^. ..,,, ,, ilo (UlllWoL , LUIUU- I ilLCSlinC ! Movable. Up to now the Holiso of broadcaslln Hearings to an end. And some of that pressure was applied right Oct msidc tl«. committee, a Is one of I Dec Ihc strange /nets of this whole Jail' •story that the Investigation was 1 Mar " made by me Senate Dunking Com- i May " mlttcc which was overwhelmingly July hostile to llii; Investigation;, it " would have killed It off early in llic t'iimo. But, after Pecora's son- siitlonal exposure of Mitchell and the National City Bank mid later of the Morgans and their escape 1 from income tuxes for three years I Dec .suppression was Impossible. ' I May open high low close . 1225 1232 1225 .... . 1232 1241 1232 1240 12431) 1250 1250 1239 1245 1247 1251 1250 J258 1233 1245 1247 -• •• **.uu lf.1l l£Jf bpots closed steady n t 1271, up 12. Chicago Wheat open high . 88 9S 1-2 98 1-8 98 3-4 low close 97 3-8 '98 SI J-2 US 1-1 But the efforts never ceased Pocora liimsclf , m - continually subjected io them. Wall Street always uses one powerful weapon I call it the "Terror." It is very often easy to frighten men in positions of great responsibility away from a course if enough people in whom they haw confidence will keep pointing out to them that they are inviting a national disaster. I have seen more than one Boort man draw hack In the face of this technique. The big bankers, the Exchange, groat politicians ol both parties turned this tenor on Senator Norbeck, Mr. Pecora I later Senator' Fletcher and tue committee, just as they are now applying it lo the Securities Exchange Commission lo scare them away from drastic control of Ihc stock Exchange. When the Democrats took control of the Senate, Sc-nalor Duncan U. Fletcher of Florida became' chairman and assumed direction of tlie probe. This was a lucky circumstance, for throng)] .... lt . maming year he stood like a rock behind Ferdinand Pccora and did not, so far as I able to see, give an inch in the face of the most powerful forces. TOMORROW: Wall Street Under Ihc Miscroscope. Palestine is erecting station. radio Chicago Corn Dec. May open high 75 1-8 75 5-8 17 1-8 77 5-8 low close 74 1-4 75 ' 76 3-8 77 Closing Stock Prices NEW YORK, Oct. 24. (UP)—A booming market for railroad shares on news the District or Columbia supreme court held the railroad retirement act unconstitutional fea- turcd a late rally today on tl stock exchange. A. T. and T Ill 3-8 Anaconda Co;i|>cr n Belli. Steel 28 1-2 Chrysler 3G 3-4 Cities Service .} j I. B Gen. American Tank .. 35 1-2 Gen. Electric ....... ig 1,3 Gen. Motors 30 5-8 int. Harvester 33 7- Mc K esson - Hobb Ins Montgomery Ward N. Y. Central .... Packard Phillips Pet Radio Simmons Beds ... Standard of N. J, Texas Co U. 8. steel U. S. Smelting ... 1 1-8 ...28 1-8 ...23 1-8 .... 33-4 ,.. '14 1-4 .... 6 .... 93-8 ... 41 1-4 ...20 1-2 ... 31 3-8 .. 110 1-2 W. E. KICIIMONlt & CO'S AFTERNOON COTTON IETTFK NEW ORLEANS, Oct. 24—Risin cotton prices today mostly reflect cd the hope that President Roose veil's address tonight lo the bank ers convention In Washingtoi would sound a note of encourage incut. Early cables were slightly bctte than exacted and the rcpsoiisc on this side was an overnight ad vancc of 5 "or n points, following winch tlio market lapsed into Ui usual dullness; but held firm, Then was no appreciable pickup in ac tivity, but near-the close anodic small i^e carried .-quotations (< -he test levels of, the day and a the finish net gains ranged frou 12 to 15 points, with the Ion here called very steady. Little attention .was paid ti .he favorable weekly weather re view, except lo note that pickin' n most sections was probably fur tlicr advanced than usual at thi time, her. Secretary due to almost ideal Wallace's statcmen BLANK BOOKS READY FOR IMMEDIATE USE We not only make Special Account Books to order but carry a complete line of Blank Books required «n anynsmess., (Send •nimiber inside book when order- We also stock Loose Leaf Ledgers, Cash Books and any size milder. Also, Ring Books and • • • to lit ally ones needs. Beautiful Assortment 18 Engraved Christmas Cards. Postpaid E. H. Clarke Cf Brothers, Inc. PRINTERS & COMPLETE OFFICE OUTFITTFRS 19 S. Second St. Memphis, Term. -85 ( FOR ECONOMICAL T R A N S P O R T A TIO N Two great Lines of cars in two low price ranges ONE STANDARD OF QUALITY KARLET I WIST ALL TALKING J SPECIAL MID-NITE SHOW (ONLY) Saturday it P. ar. SHARP SECRETS REVEALED- MXY-SAT. THE STANDARD CHEVROLET $ 465 AND UP SPORT ROADSTER $4(,5 COACH 495 COUPE 4S5 STANDARD SEDAN Sto STANDARD SEDAN DELIVERY If o Dfl announced soon) Above are list prtcos of pas- scngsr cars a! Flint, Mkh. Wilh Jumpers, spare tiro and tiro lock, tho list price cl Standard Models is (13 additional. List prices ol commercial cars guclcd are /. o. b. Flint, Mich. Special equipment etlra. Prices subject notke. H ERE ia the world's lowest-priced sU-cylindcr motor car—the Standard Chevrolet! Higand roomy, measuring 169 inches from Ininijwr to bumper, it is offm-il for as little as $165—t!ic lowest price ever placed on a cnr of its size, ivlicelbasc ami jxiwcr. And it's a/iiJ/-,i, u ,/;,y OiciTolct with beautiful Rody by Kslier . . . valvc-in- head six-cylinder engine . . . ami extra-nigged chassis .'. . built to give that finer satisfaction vlricLi has made Chevrolet tho choice of millions for economical irans- jiortation. Your Chevrolet dealer cordially i m 'i u , 3 ou to examine the Standard Chevrolet motlcls-and to rido in the model of your clioice-at your earliest convenience. THE MASTER CHEVROLET TJERE is Ihc same high quaiiiy Chevrolet in the Master J. J. Scries.. .ancvenit'ggcr Six with Knee-Action wheels . . . providing advantages of size, comfort and riding ease unmatched in Chevrolet's price range. The Master Chevrolet is available in eight luxurious body types. It is the dc luxe car of the low-price field, as you will agree wbcn you e\|>crience the comfort of its Knee- Action ride . . . the smooth, nimble performance of its SO-Jiorscpowcr, valvc-in-nead, six-cylinder engine . .. and the, safely of its shock-proof steering and cable- controlled brakes. Visit your Chevrolet dealer—have a ride in on c of these splendid Chevrolet models— today' ONE RIDE IS WORTH A THOUSAND WORDS ' Shouse Little Chevrolet Co. Bluthcville, Ark. .- i «.•.*!, S 540 AND UP SPORT ROADSTER |*!0 COACH 58fl TOWN SEDAN 615 MO ;. 560 Si'ORT COUPE 600 CABRIOLET 665 SPORT SEDAN 675 .4&ovc are Hat prices ol paa- senrfor cars at Flint, Mich. With bumpers, spare tiro and tire lock, the Hat price of Master Models ii ?30 additional. Priceaaubjcct tochange without notico. thot an Increase In co " c o" 1 of Ml r ° f of Ibrelsii goods in ox change was also without in ifcci, but the remarks of ci an Jones of the RFC a ^ , wo Lnnkcrs of government co oi< trillion in the liberallzalinn credits and the modification •sulsilons on t.mJsing vtM . iimmneetJ by 11* KRA vi'cre sut '« of favorable cc:nment, ROXY Wed. and Thufsdaj MAT. & KITE—lOc - 25c every S'rl'* FAY X WRAY and PAUL LUKAS in tho delicious!? delight, ful comedy.drama-rom- ance of a penniless movie extra girl who became a temporary Countesj In real I If el ^COUNTESS OF MONTE sCRISTQ L ,..-... .'«un«h Prticnttd , (>> Cirl L«mmle, Fox News ;(. Comedy and Novelty KIT! Last Time Today Milt. 2:30, 10-25c Nit'e 6:45—10-35c JIMMY DURANTE and HARLES HUTTERWORTH in 'STUDENT TOUR' Paramount News Cpmedv Thursday & Friday M«.'WIGGS spcnfcin^...! •"It ain't never no use puttia' up your umbrella till it ra PAUUNEIORD W.C.FIELD5! ZASU PITTS EVELYN TONABLE KENT TAYLOR Adventures of the Newsroom Cameraman—"Piclurcsiiuc • I'orlusiil" fl JIusical nnd Comcily

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