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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Oct. 29, 1959)
MAIL TRtlUXI, MHforJ. Or. Tkunrfty, Oct. 29, 19S9 OPEN FRIDAY AND MONDAY EVENINGS TIL 9 P.M. 3 837 COIL MATTRESS BOX SPRING COMBINATION OFFER SAVE OVER '10 10 r ' REG. 99.95 . REDUCED TO ... t : TRAIN PILES UP Shown is the wreckage of a Frisco - wheat cars into a nearby field and leaving the diesel engine ; freight train that piled up near Valley Center, Kan., The, derailed but still standing. No one was seriously injured. 1 train apparently buckled, derailing six freight cars of wTieat . ; (UPI Telephoto) and two empty tank cars from the track, shoving three ' r Echoes of Stock Market Crash Still Heard in Wall Street, Walzer Writes y EtWUER C. WALZER .:' UPI Financial Editor t New York-OiPD-Thirty years "ago the stock market Jeli with such a terrific thud that its echoes can still be heard in the canyons of Wall Street. i Each year at the annivers ary of that black week of 3929. Wall Street recalls the tsollapse of one of its greatest bull markets and the depres sion that followed. I Always the question arises: rCan it happen again? I Today, market experts, economists and businessmen join in answering that ques tion with a resounding "no." I. We have built in sufficient iafe-guards to avert depres sions - not recessions in the future, say the experts. We'll continue to have setbacks from time to time but no f m ashing depression like 1929-1932, they assert. J On the business side, we have built in such stabilizers ps the ability to tighten or ease money, raise or - lower taxes, maintain high employ ment, pay the unemployed in .Recession periods when the fconomy needs a lift and pro vide aid to farmers. I- For the market, we have turned from a speculative to an investment era. We have iigh margins - the down pay ments on stocks held on cred it; we have new rules and laws to prevent wild specula tion 'through manipulation; we have vast amounts of in formation on various corpor ations and on general condi tions in the economy. Hits Record r Back in 1929, the stock market hit its record high on Sept. 3 when the industrial average touched 381.17, com pared with the 1959 high of 678.10 on Aug. 3. Margins 30 years ago ran around 10 per cent or so against 90 per cent today. Trading was entirely speculative compared to the almost complete investment market of today. Trading ran at an average of 4,276,808 shares a day in 1929. And this was based on listing of a little more than a billion shares valued at $89 billion. t This year, trading averages bout 3,341,000 shares daily cjn 5,510,186,000 shares valued t$305 billion. J In other words the specula five turnover of 1929 ran at a rate of 119 per cent of all sues listed, against a mere il per cent turnover today, lln those days, market credit Ian up to nearly $9 billion. "oday it is less than $3 bil Bon. Gross National Product 5 Today we have a gross na tional product of $467 billion tgainst $104 billion in 1929; personal income of $366 bil fion against $86 billion; dis posable personal income (per sonal income after taxes) of $321 billion against $83 bil Bon; and personal savings of $20 billion against $4 billion. Corporate profits for 1959 $re estimated at $37 billion Compared with less than $10 Sillion in 1929. Dividend pay ments are running toward the J9-billion mark against less than S3 billion in 1929. Today's market is a haven r investment by institutions 4s well as by nearly 13 mil lion individuals who own Stocks. The Stock Exchange . Jeported that in 1958 institu gonal holdings of stocks mounted to $45 billion, 4-hich was 16.3 per cent of 'BLACK FRIDAY' Wall Street was a scene of near-panic as hundreds of bewildered in vestors milled about after the stock market collapsed on "Black Friday", Oct. 29, 1929, as seen in the above picture made at the time. At right is the New York Stock Ex change building. Each year, at the anniver sary of that black week, Wall Street recalls the collapse of one of its greatest bull mar-, kets and the depression that followed. , . . , (UPI Telephoto) the total value of all listed issues. Mutual funds are holders of i many billions more of stocks. Banks, insurance companies and similar organizations also invest heavily. All this .means that a great deal of stock is held by strong hands which aren't apt to sell it on the spur of the moment. Back in 1929, the market receded in September and the first part of October. The lightning struck on Black Thursday - Oct. 24, 1929 -when nearly 13 million shares were sold. The sales were small and there were sy many of them that the tickers ranfour hours and six minutes . after ,the market closed in order to catch up. Next day there was a rally and then another break. Then came Black Tuesday - Oct. 29, 1929 - the biggest day in Wall Street's history.. Sales that day totaled 16, 410,030 shares, a total never again duplicated. Stocks ap peared in much larger blocks than on the 24th and the last quote was reached at 5:29 p. m., almost two and a half hours after the close. The Oct. 29 plunge sent the Dow - Jones industrial aver age down 48.31 points to 212.23. That break wiped out thousands whose holdings were held on shoestring mar gins. Always optimistic, Wall Streeters jump e d in and bought stock next day after another sharp break. The buy ing brought some .recovery from the lows. . And the fol lowing day the market closed higher by 28.40 points. But a record total of 57, 256,000 shares had been sold between Oct. 24 and Oct. 30. And it was only the begin ning. New declines came with rallies at intervals until the industrial average had been dragged down to 41.22 on July 8, 1932, the depth of the depression. . . Altogether, the value of all issues listed on the Stock Ex change fell by around $75 billion. It was estimated that all securities lost around $125 billion during the great de pression. Our present market u wor ried over the steel strike that has slowed up all industry. It is smarting under the pressure of tight money even though there is very little credit in the market itself. A tendency toward bonds is also making for competition. ' But Wall Street experts are unperturbed. They do not ex pect too. much from the mar ket for the remainder of the year. It will have to absorb heavy tax selling - selling in stocks to establish gains or losses for income tax purposes - between now and.year's end. A big spurt in business is anticipated once the steel strike is finally settled. Cookbook eIc2r Section "Winners at the Penny-Wise Fair" Budget-wise recipes are featured this week.. .but being penny-wise doesn't mean sacrificing flavor or the look of an attractive dish. 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