Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1930-11-03
Lean Year Follows Market Crash
By PAUL HARRISON
NEA Service Writer

NEW YORK, Nov. SIT has
been a year since the American
security market. from its peak Of
1929 values, began to crumble,
finally to collapse into an unpre-
cedented landslide Of liquidation.
But 70 Wall Street, that twelve
month period, with its alternate
rallies and declines. has brought
little relief.
In fact, though the hectic panic
OF selling last fall failed to send a
single Exchange member into in
solvency, the financial district now
is thick with ruInors Of pending
breaks in brokerage houses. Two
already have fallen. and two 9TH
ers have withdrawn from the Elk
change, henceforth to act only as
investment companies.
E. II. II. Simmons, who was
president Of the New York Stock
Exchange during the crash. de-
clares that the stock market is
very much more affected by bust
ness than business Is by the stock
market" But whatever the con-
trolling factor. a review Of the past
year reveals a significant story Of
the correlation between intangible
paper values and actual dollars.
The following statements are based
on records Of Standard Statistics
Co, Inc.
Decline Began Early
The decline in share prices which
ended in the panic began as early
as mid September. At first, how
ever. there was no suggestion OF
panic, and many spoke OF 1t as a
healthy reaction" But by Oct
ober % the landslide was on. and
the following day brought record
sales OF 10000, 900 shares. On
Tuesday, Oct. 90. with public hys-
terra at its height. l6.400,000
shares were reported sold during
the five-houz Stock Exchange ses-
sion-a high record for all time.
From Sept. Z. when record high
levels were reached, the general
market already had declined about
80 per cent. But the worst was
not yet. BY Nov. Is the decline
had become 48 per cent, the most
severe in the present century.
Later in the month. stimulated by
the optimistic statements OF bankers
and business leaders, anG by favor
able dividend actions on the part
OF several big concerns, stock prices
rebounded to about 80 points over
the extreme low OF November Is.
This action followed the long
established precedent Of a sharp
rally after a drop, but prices started
downward again. and by December
there was general recognition OF
the fact that the entire country
had come upon lean times. Steel
mills were running at only 81 per
cent capacity. compared to the full
time levels of the previous summer.
and 10 IS per cent OF the same
period In 1923.
Plunge Continued
Then it was found that the mar
ket would not respond as IT had
in the past TO the artificial stln-
uli of declaring good dividends and
making hopeful statements. The
market plunged lower, finally to
take a Slight upturn in late Decem-
Der. The motor a industry was
AZ the DOIlOIH, cACCPl AOA IOAG' dA1A
steel still was declining. The
building recession was unchecked,
and the radio industry hard hit
BY a s~lackening Of buying in tire
semi-luXury line. II faced the
new year with the troublesome load
OF about a million surplus sets.
January brought news that n
retail trade was s~lackening, and
that industrial production in the
last two months had hit its worst
slump since 1924. But there was
a revival OF interest IN stock-buy-
ing and rails and industrials went
to new high 1880 levels. Febru-
airy brought a slow rise, with radio
shipping and steel industries some
what improved.
The market generally advanced
through March and most OF April.
For some time the most encouraging