The Bismarck Tribune Newspaper, October 29, 1937, Page 3

Collapse, Depresses Stocks SECURITIES PRICES SOARED AS NATION’S OPTIMISM WENT OUT OF BOUNDS By JOHN T. FLYNN (Copyright, 1937, NEA Service, Inc.) New York—When the stock market cracked up in 1929 all the wizards who had been proclaiming eternal prosperity rushed into print to explain the disaster. They came forward with the most fantastic collection of “reasons.” The favorite one—ad- vanced by several of the most distinguished bankers—was that the market collapsed because the senate had for eight months debated the tariff law, leaving the nation in uncertainty which finally broke the market’s back. explanation was offered by Charles Mitchell, that it was be- Another cause of the capital gains tax. Still another explanation was that it was all the result of evil forces eOHne oot, Som Suroes, @t least a year or two sooner. control. Hence nothing SEC, the New Deal, the and the property guarantees of the but most of all the SEC. It is possible for sensible men have different views on all these subjects and forces. But sensible men who have money to invest would do well not to permit them- selves to be excited by the uninformed and angry ravings of either politic- jans or financiers who hate each other. ‘There never was s market collapse in which the causes were more obvious than this one. If you would know what they are, you have to begin by asking not why the market went down, but why it went up. When you know why it went up you will know precisely why it went down, On December 9th, in a dispatch to NEA Service, I reported the situa- tion in Wall Street as follows, ing a distinguished financial author- ity: “We are on the eve of one of the grand scale soon; have indeed be- gun.” On February 28th, in a dispatch from Salt Lake, after @ trip around eported: “Throughout People’s F Forum Editor's Note—The Tribune wel- cae ues gu abet nants: ee lig lous ‘subjects, which fairly. oF tl o letters as may be ni eanterm ublication Ce, it wisal e1 te Umited to 600 words, lei 59 z i Eee Hi g ie 5 zs i gE i ‘ E H : psaugys s lai course we know now, as ought to have been perfectly plain then, that that fatal event was due to none of these causes. then because it was utterly and hopelessly crazy. It market crashed to have crashed ‘The recent stock market collapse ‘Wall Streeters’ runners crowding securities 3 iu foe et eters he bad zd it to be delivered : summer time was sufficient to give THE BISMARCK TRIBUNE. FRIDAY, OCLOBER 29, 1937 ‘End of Boom Dream, Not Business Says Flynn A 4 j brought many scenes like this— arctind some Clerks waiting for to néw owners. still to be gdod. We will see that what happened was not a collapse. of busi- ness but a collapse of the hope of a great boom. The course of business up to the color to the rosy expectations of De- ‘cember. Industrial production, build- ing contracts, factory employment, freight car loadings and retail sales Tose, not only through the year, but well over the totals of last year, But wiser eyes began to see that | while all these energies in business im- proved they were far from attaining up boom proportions. And then as the summer arrived a most serious ele- ment entered the picture. The chief Teliance of the boom was upon the promise of @ great surge forward in “They refuse to see themselves, these Wall Streeters, as little people caught up in the vast sweep of economic forces beyond their ken.” building construction. Building con- tracts awarded did, indeed, increase. ‘They were, in fact, fifty to sixty per cent higher than last year. But this was not enough. Fifty to sixty per cent increase looks like a great deal. But if a marf has only a couple of collars to start with, a 100 per cent increase in his capital doesn’t mean much, Besides, as the summer got under way the increase slackened and since June they have fallen off down tu the level of last year. Industrial and railroad and utility rehabilitation of ‘plant and expan- sion also failed to materialize. New security financing to buy production equipment just didn’t show up. It was | estimated somewhat better than last year, but rot much. Add to this a very important factor —bank demand deposits—and you have the last important essential in the picture. These have declined steadily since March. They are still high and, in many respects, they are more healthy than last year. * * * But the important feature of all this is, not that business did not improve, but that it improved only moderately, which would be enough if we were a isaner and more realistic people and Jess eager for the flesh-pots. The rate of improvement and the causes of the hesitancy in the upward |rise made it perfectly clear to every- fone that the boom dream was just ja pipe dream. The wizards had been wrong again. One of the amazing things about ‘Wall Street is that in its judgment on economic matters it is almost al- ‘ways wrong. But this,never impairs its confidence in its own superior wis- dom. ‘They refuse to see themselves, these Wall Streeters, as little people caught in the vast sweep of economic forces byond their ken. NEXT: “What now? in Wall Street. | SLOPE NEWS | Killdeer—Pros and cons of a pro- posed sewer system is under discus- sion here, The city council has voted &® preliminary survey. New Salem—Members of the cast for “A Ready Made Family” have been selected. They are: Amanda Holle, Arnold Vollrath, Jean Just, Harold Ostering, Ellen Vellios, Milton Gaebe, Beverly Kruger, Clara Rud, g Egs Hold Special Services Special services will be conducted in the Bismarck Evangelical church each day during the next two weeks except Saturdays, Rey. William Lemke, pas- tor, announced Friday. The first will held Monday. lees Cecilia and Arthur Leib. Hagelton—First sheep of their type in this area, two karakul rams have been purchased by Lester Briggle. appointed executive secretary of the Emmons county welfare board. Medora—Funeral services were held in Dickinson for James H. Rasmus- sen, 26, a victim of double pneumonia. He was born in Medora. Underwood—Members of St. John’s Lutheran church have fenced their improvements, Beulah—Mrs, Grace B. Martin of the NDAC was in charge of a 4-H club leaders training course here. New Salem—Young people of the Lutheran church have elected the following officers: Delmar Schmidt, Underwood—Living only a few hours, the baby son of Mr. and Mrs. Earl Krebsbach died. Hazelton—Rev. Herman Schweitzer, resident priest here, has left for his new pastorate at Hazen after 11 years. Werner—In celebration of her 86th birthday, 20 neighbors gathered at the Guy Smith home here to honor Grandma Smith. Killdeer — American Legionnaires here have elected as co-officers Earl Morrell, commander; Roy Karey, vice commander; John Brooks, adjutant; .|Nace Doherty, treasurer; Bob Rych- ner, historian; Charles Burda, service officer; Wilburr Feer, chaplain; Irwin .| Kelley, sergeant-at-arms. counter-revolutionary “destruction of livestock and disruption of collective farming.” ert First Federal Savings and Association ef Bismarck, Bismarck, N. D. Safety fer INVESTMENTS individual by the Federal Saving ‘Corporatien, Your Savings -:- reduction—Principal reduced LOANS—Direct menthly by instalment payments, Insured up to $5,000 te each and Lean In- Dividends paid semi- Low-cost Home Leans Room 5, 305% Breadway Phone 271 Fessenden—F. A. Young, Selfridge, succeeds F. A. Mead here as welfare board secretary. Mead takes a simi- lar post for Oliver county at Center. Garrison—Hans C. Nelson of Wash- burn is directing McLean county's Red Cross roll call. Reeder—Officers of the new Home Builders club here are Mary Davis, mt; Fern Bohne, vice presi- Barbara Cullen, secretary- dent; Erliss Jacobs, club re- treasurer; porter. + Linton—E. T. Atha, former Emmons county auditor, has been FOR SALE Turkey Barrel Packs “Northern” Hide & Fur Co. Brick Bidg., Corner 9th & Front Phone 406 Bismarck president; Arthur Nickel, vice presi- dent; Bertha Riede, secretary-treas- urer. New England—New officers of the Rainbow girls are Dorothy Johnson, worthy advisor; Betty Page, associate; Ardyce Zempel, charity; Eleanor Howard, hope; Jean Ruggles, faith; Rhoda Hort, drill leader; Carol Fre- sonke, chaplain; Eleanor Oldenburg, love; Josephine Miller, religion; Win- ifred Oakland, religion; Peggy Stange- bye, immortality; Abbe Nelson, fi- delity; Peggy Hansel, service; Lucille Rada, service. ‘Still—Still Homemakers have elected the following club officers for the year: Mrs, Henry McCul- logh, president; Mrs. Walter Sundquist, vice president; Mrs. Coleharbor—Coleharbor High Jun- fors staged “Chints Cottage,” three- act comedy, with the following in the cast: Evelyn Buchert, Myrtle Hult- berg, Lorraine Nelson, Ben Rivinius, Ruby Josephson, Clifford Bratz, Es- ther Jacobs and Gertrude Temanson. Fessenden — Officers of the Civic club here are C. Arnold Quarve, presi- dent; Oscar Westley, vice president; Prank Metzger, secretary-treasurer; D. O. Jenson, joker; Fred J. Mohr and A. F. Belcher, directors. ABOLISHES OFFICE St. Paul, Oct. 29.—()—Abolition of the division of administration in the state highway department, headed by Mrs. Syivia C. Notestein of Minne- lapolis, was disclosed Friday as Gov Elmer Benson pushed his demands for consolidation of state departments in a@ move designed “to effect economy and increase efficiency.” cemetery near here and made other! 7, CAN'T DECIDE IF PROGRAM SHOULD House Agriculture Committee Postpones Decisions on that Part of Farm Bill Washington, Oct. 293—()—Members of the house agricultural commit- tee disagreed Friday over making the They will not make a final choice until subcommittees have drafted ail other details of a bill for presenta- tion to the special session of con- gress. Rep. Coffee (Dem.-Neb.) was one of those expressing opposition to com- pulsory control. He suggested a dual price system that “would assure the farmer a fair price on the domestic markets and allow him to compete in the world markets with surpluses.” Rep. Cummings (Dem.-Colo.) said control would be necessary “if we are going to guarantee to make agricul- ture profitable.” Secretary Wallace has said de- finite control over surplus crops is essential to success of the proposed ever-normal granary program. Crops Show Need ‘The bumper cotton crop this year and large crops of corn and wheat have demonstrated the lack of this control, agriculture officials said, in the present soil conservation program. Wallace said the public, farmers and’ congress must choose between voluntary and compulsory controls. Meanwhile preparations were going forward for financing a cofn loan program. Informed persons said a tentative draft was worked out ‘Thursday by Secretary Morgenthau, Chairman Jesse H. Jones of the Re- censtruction Finance Corporation, and Daniel W. Bell, acting budget director. Spokesmen for the agricultural ad- justment administration estimated that about 4,000,000 farmers will share in the 500,000,000 in benefit payments under the 1937 soil conservation pro- gram, about as many as were paid $400,000,000 in 1936, They said fewer cotton farmers joined the government program this year but that this decline and other possible declines in wheat and corn farmers were offset by increased par- ticipation by fruit and vegetable farmers and range land Avalaeas , Eligib! AAA officials said the total number of farmers eligible to participate was variously at from more than 6,000,000 to more than 7,000,- 000. Secretary Wallace estimated that 3,000,000 farmers co-operated in the original AAA program with its con- tracts for corn-hogs, cotton, wheat and other commodities. That setup was invalidated by the supreme court early in 1936. ‘i Official government reports on arvested acreages in the Crop 1937 Cotton 28,197,000 30,960,00034,192,000 Corn — 98,372,000 100,555,000 96,915,000 Wheat 69,207,000 73,600,000 80,603,000 Tobacco 1,437,100 1,436,900 1,689,700 Rice 816,000 935,000 1,003,000 Officials estimated about 58 per cent of all farms in the ten corn belt states participated this year, or the same as in 1936. More Under Program The Western AAA region estimated 72 per cent of all crop land was under the 1937 program compared with about 65 per cent in 1936, Preliminary estimates on state par- ticipation for 1937 and 10936, in the north central region were: Per cent of total farms: 1936 1937 BASLS3ESEE Per cent of crop land: 1936 CONGRESSMAN DIES Oklahoma City, Oct. 29.—(7)—R. P. Hill, Oklahoma City, Democratic con- gressman from the fifth Oklahoma district, died in a hospitel Friday af- ter suffering a heart attack. BOY KILLED BY CAR Albert Lea, Minn. Oct, 29.—(7)— Raymond, 7-year-old son of Mr. and Mrs, Arthur Gotland of Albert Lea, was fatally injured Thursday night when struck by a car. More than 140,000,000 pounds of steel welding wire are produced in this country annually, or enough to make & strong weld 134,000 miles long. Phone 544 for Storm Window Repairs. Vantine Paint & Glass. Patterson Bakery Visit our Fifth Street Coffee Shop and see our nice display of Home Made Pastry. Four loaves As- sorted Bread, 25c, Special. Chocolate Eclairs, Cream Puffs, French Pastry, all kinds of sweet rolls, pies like Mother makes. Phone 397 or 2400. Ask for Catering Manager, Mr. Kondos, or leave order with clerk. Sunday Chicken Dinner in Peacock Alley ....45¢ We buy and serve only the Highest Grade Meats and Food Supplies. We cater to private par- . ties from 2 persons to 1400. Patterson Hotel The Only, eeiee Hotel Smiling Selfridge in California Apparently pleased with his pleasure trip, Sir H. Gordon Selfridge, above, Chicago man who introduced American shopping methods to London 29 years ago and created the world’s largest, depart- ment store there, smiles on arrival at Los Angeles airport. With him are’ his, daughter, Vicomtess de Sibour, right, and Mme Marcelle Rogiz, friend of the vicomtess. And John Came Tumbling After London, Oct. 20.—()—Postal clerks registered only mild sur- prise when John Thomas’ bowler hat came tumbling into a subway Postoffice through a 90-foot mail chute Thursday night. But they were downright flab- bergasted when white-haired John Thomas himself came through the chute a second later. Thomas, 69 years old, dived head-first into the subterranean passage when he stumbled on the Liverpool street station after alighting from a train. Mrs. Guggenheim, Divorcee, Robbed Mineola, N. Y., Oct. 29.—()—A wo- man identifying herself as Mra, Eliza- beth Eaton Guggenheim, divorced in Reno Tuesday from Col. M. Robert Guggenheim, and her escort reported to Nassau police they were beaten and robbed of $400 by two men early Fri- day as they were leaving a Jamaica avenue restaurant. Mrs, Guggenheim, whose chin aud cheek were cut, said the men took $300 from her while her escort, who identified himself as John Frey, Jr., 28, said he lost about $100, The rub- bers escaped. Frey suffered a split scalp and a black eye. NEED MARITIME LAW Montgomery, Ala. Oct. 29.—(P)— Louls Johnson, assistant secretary of war, told national guardsmen Friday the nation needs “a law with teeth in it” to “attack the evils of inflation and excess profits” in time of war. MRS. TOMMY IV DIVORCED ' Reno, Nev., Oct. 29.—(#}—Thomas Franklin (Tommy) Manville, Jr., was divorced for a fourth time Friday when blonde Marcelle Edwards Man- ville won an uncontested decree at a private trial. Duke Not Useful, | | Declares Lewis —_—__ Norman, Okla., Oct. 29—(7)— Sinclair Lewis, the novelist, told a Universtiy of Oklahoma audience here Thursday night “there is no longer any way for the Duke of Windsor to make himself useful to the world. He is just a member of a fine Anglo-German family who has learned to speak English pretty well.” Burned Trying to Rescue Small Son Madison, Minn., Oct. 29—(#)—Three persons were burned seriously when they came in contact with a fallen high voltage electric line near Bel- lingham, nine miles northwest of here. Mrs. Fred Witte was burned when she attempted to pull her small son away from the fallen wire. Alfred Okeson, who was driving by in 4 school bus, was burned when he at- tempted to rescue the woman and her son, The three finally were rescued by Gus and William Roehl, farmers near Bellingham, also passersby. U. S. Carloadings Continue to Drop ‘Washington, Oct. 29.—(#)—The As- sociation of American Railroads re- ported Friday 773,353 cars of revenue freight were loaded during the week ending last Saturday. ‘This was a decrease of 36,591 cars, or 4.5 percent, compared with the pre- ceeding week; a decrease of 42,889, or 5.3 percent, compared with a year ago, and a decrease of 196,139, or 19.4 per- cent, compared with 1930. NOT LOST, JUST HUNTING Jerome, Idaho, Oct. 29.—(7)—R. L. Cornwell and his 10-year-old son, Dean, unreported six days in the Cen- tral Idaho wilderness, emerged at Seafoam ranger station Thursday night and explained they’d just con- tinued their deer hunt until they killed a buck. | Last call —BERGESON’S ANNIVERSARY SALE—on Top Coats, Overcoats, Suits and Shirts. Follow That Man! He’s a member of the FIVE O'CLOCK CLUB If _we follow him to the BLACK- STONE CLUB we may get in on the 5 o'clock special. YOU CAN'T MISS ON THIS! YOU HAVENT HAD A CALVERT HIGHBALL? THEN LET ME SHOW YOU WHAT A SWELL DRINK IT MAKES AWAIT REPORT ON AUDIT OF NDAC Langer Newspaper Charges ‘High A. C. Officials’ With ‘Graft, Intrigue’ (By the Associated Press) Members of the state boarld of ad- ministration Friday awaited submis- sion of an audit of the state agricul- tural college which The Leader, Langer administration weekly, Thurs- day declared contained “sensational findings.” Although not yet made public or submitted to the state board, the audit information came in an in- terview with the auditors, according to The Leader. The Leader quoted examiners as re- porting conditions of “mismanage- ment, inefficiency, graft, intrigue misappropriation of funds and be- trayal of public trust on the part of high A. C. officials.” Declaring that these alleged con- itions were basis for dismissal of seven faculty members at the col- lege recently ,The Leader reported the A. C. was “headquarters for one of the biggest secret political organ- izations in state history.” “Because some of the conditions un- covered at the institution were so rot- ten that in the opinion of the exam- iners they should not be made pub- lic,” @ suppleemntary report pri- vately to members of the board may be made, The Leader asserted. Booklet Publication Scored by Rosenberg Oliver Rosenberg, New Rockford, president of the North Dakota Holie day association, Friday, scored pers sons who recently published a booke let under what he termed “false pre- tenses.” ‘The association, Rosenberg declared, has not authorized the publication of what is called the “Holiday Handi- Book” and has not authorized solici- tation of advertising. “The association,” Rosenberg said, “4s not engaged in any racket. Its officers and directors are not en- gaged Pie John G. Walz of Fessenden, as- sociation president, joined Rosenberg, in the condemnation. The book was published by Mon- tana persons, Rosenberg said, Buchanan Farmer _ Dies Unexpectedly Jamestown, N. D., Oct. 20.—()—Ber= tel Sorebson, pioneer farmer of near Buchanan, died suddenly while visit- ing at a Buchanan farm near his home Thursday night. He is survived by his widow and eight grown Fus neral services will be held either Sun- day or Monday at Buchanan. medicated with soothing ingredients of Vicks VapoRub. CkKS COUGH Drop The Bighorn Sheep depends on skill; Likewise, a perfect drink depends On skill in making perfect blends CALL FOR CALVERT! YOU SEE, BLENDINGS MIGHTY IMPORTANT | IN MAKING A WHISKEY SMOOTH AND FINE-FLAVORED--AND CALVERT HAS 7A] THE EXPERT p TOUCH ! ————— CALVERT-ICE--SODA..THATS THE RECIPE FOR THE SMOOTHEST HIGHBALL CLEAR HEADS {CLEAR HEADED BUYERS} CALL Ca FOR lvert w