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FEDERAL
RESERVE
BOARD
STATET.'Bf'T '.FOR 1HE PRESS
X-3673
For release in Morning Papers,
Wednesd.ay, March 2S, 1923.
The following is a sumn"iiry of general busin<;;ss
etnd finan:::i81 conditions ttroc::.grwut t~~e several
FedcJral R;serve Districts during ti1e month of
I·hr-;: ,
as co~1tained in L1e forthcoming issue
of u~e Federal R:0serve Bulletin.
Continued active business is inc.licated by L1e uaintena.nce of a
high rate of indus trial prociuction, increases in freight traffic and employment, and. a large volune of retail and w}wlesale tr:::d.e.
Prod-:..1ction
The Federal Reserve Bo,;;ri' s inc.Lex of .;:-•reduction in basic
industries for Febru'1.ry was at the same high level as in January.
Tne
index number for these industries is. now apr=•roximately eqUE!.l to the
highest point reacted in the past.
there has been an increase of
61
Smce the lmv point in J1:J.y, 1921,
per cent.
'l':.Je volur.18 of new building
projected in February was e::ce.ptio:nally larg8 for tr.e sc:oaso:n, particularly
in western districts.
Railroad freight shipments
i~ave
oe,:.m increasing
and t~.e car shortage, which was somewl'w.t relieved in Decembei' and January,
became more marlced in recent weel:s.
A continued incre<..,,se in industrial employment has been accomi'anied
by furtl1er ad.vc.:mces in 'Nage ratdS in a number af industrLos.
Many New
England. woolen mills am1ounced a wage increc.1.se of 12 l/2 per cent effectiye April
te:~tile,
30.
A shortage of women wort e:cs : as been repcJrted in the
rubber, and gariDent industries, a11ci Lere is a s:wrtage of un-
slilled labor in many industrial centers.
-2~
Tr_q_cl.o - 1Vholesde ,md retail distriJc:ticn of goods contim.:..oci a.t a :igh
leval during February.
Sc:. .les of boti: 'Ni.,Ol0S.J.le .s.nd rota.il concerns re~'-e:P,
})Orting to the Federal Rasarve Banks woro uell above thos,:; of a ye.lr
bc;t L_e increase Na:o relatively more 1.orvnounced in vvl':olesale trade.
T:hil order and c:.a.in store bu;;,ines:.; ·Jvas almo'>t as large in Febru:. ry as
in JJ.Duary
were actually larger than in January.
~ojesde
Prices - The Bureau of Labor Statistics index of Ni,ol8S8.le
pric;:;s advJ.nced slic,;,tly dnring February.
Prices of metals, buildi:::g
mat~.::rials, and clot::.~cng incr.:;a.sed, 'rJ!-dle pricas of f<J.eL;, a.nd farm products
decl :uwd.
Buildin 0 materials and rJetals during tne :pa.;,t year
vanced mor::: tl1an
al'lY
other
6 ro1.1ps
~,ave
of corru.odities ::md are now about
.1d-
25
_Ran> Credit -Recent increases in industrial and commercial activity Lave
·been reflected. in a lo.rger volume of lo.:ms by member ban: s for corm,ercial
purposes, esr;ecially in the New Yorlr, Chicago :_::;nd. San Froncisco Dis tr·ic ts.
)00 milU.on dollars larger
has been
u~e-re
accor;,~janied
kan at the end of December.
Tl1is increase
by a reduction in holdings of investn:cmts; so tLat
"'as b::;en only a moderate net
increa~e
in total loc1ns and i:1-
ves tn;en ts.
T;:12
t'1e lJJ.St
mont~
Ban: s.
larger demani..L for fur1D.S Las tiOt led to any incraase during
in
t~.-.e
total volwne of cr.,;;Qi t e::tenaed. by t:::.e Reserva
•
("')"e'.
,.:, •'··"-· ...,)
-3banks in the interior incrJDS3ci., r,articularly in the Chicago Distr"ict,
but borrowings by member ban:·s in the Ndw Yorl: Uistrict decr3asad.
~las
Since tbs and of February, L-:::ra
of Federal r::;serv.3 note circ·d_;,tion
same leYal
t1S
six rnontLs ago.
been
vi_.ic~,
:;1
small decline in the volume
is now at approximately the
Other forr;:s of cLJ..rrency in
circulc~tion,
ho·rvever, have recently increa,sed..
Tha n:a.r:.. at rates on corr.mercial lJi:lper adv"1nced furtl':ar to a
range of
5
to
5 1/4
p2r cent and the rate on banl:ers 1 acceptances re-
mained steady at about 4 1:;er cent.
Thera ;,as be.m a slight increase
in the yield of short term Trea::n.1ry certificsttes as vvell as of Gov.ernment
and. OLler :::igh grade bonds.
@FedFRASER