1930 Should Be a Good Year  (As perceived by the Automobile Industry)

THERE are millions of people in America who are bored with newspaper
headings telling about the latest “market news.” It meant nothing to them in
the first place. Like the two well known comedians they “would rather hear
nothing more about it.” They would much prefer to read about a “good murder.”

The most over-rated “catastrophe” in the industrial history of America was the
“great market smash.” It is true that the “smash” caused losses, but with the majority
of the great common people who may have been involved the losses were of surplus
assets. The fundamental structure of the people has been little affected.

The “New York mind,” which is that of a few major cities, is responsible for
much of the foreboding with which industry enters this new year of 1930. Were it not
for that, the “smash” and fears that followed it would have been practically forgotten.

DURING the weeks following the “smash” editors of MoToR visited cities remote
— from New York and contacted hundreds of America’s people. Most of them had
not been “in the market,” most of them were still working at the jobs which had kept
them busy during past years and none of them could see any reason why 1930 should
not be a good year. They were working, they still are working, and they expect to
keep on working. And as they work they earn—and spend.

An almost amusing aspect of the event of a few months back is that while the
market was in a turmoil and stock prices were falling, the industries behind the stocks
were all moving along in their usual way, the workmen were all busy at their machines,
goods were being made and shipped, and the workers were going home to supper every
night in the same old way. It must have looked funny to those of them who had a
real knowledge of what was happening. The papers said the value of the company
which employed them had been cut in half, or thirds, or less. But when they got up
in the morning there still stood the same old plant and at the whistle they all went
back to work and created more dividends.

THEY are still working, these citizens of America, except for a few industries which
 have had normal declines. Even those will resume. In the turmoil we rather
lost sight of these people, but if we ring the door bells on any average home town
street in America tonight these folks will be found living in the same old way—the
most substantial foundation on which any nation was ever built.

And they will continue to buy automobiles. They have been doing it for a quarter
century with no let-downs of consequence. They won’t walk. They don’t like old cars
—and they aren’t broke. Business executives may be a bit pessimistic because THEY
“lost in the market.” It would do most of them good if they would take a day off and
talk to the great common people. They would learn that the stock market is NOT
America and that the “home town folks” are ready to make 1930 a good year.

Source: MoToR Magazine, Jan 1930

Related posts:

1. Road Improvement in America 1916
2. The Recent Market – Bull or Bear Part 1
3. World Car Market 1927
4. The Four Year Bull Market Part 1
5. The Telephone Hour 1929

This entry was posted on Wednesday, September 6th, 2006 at 12:50 pm and is filed under 1920's, Automotive. You can follow any responses to this entry through the RSS 2.0 feed. Comments and pings are closed.

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