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F E D E R A l R E S E R V E BOARD. STATEMENT FOR THE PRESS. X-3703 For r e l e a s e i n A f t e r n o o n P a p e r s , F r i d a y , A p r i l 2 7 , 1923* The f o l l o w i n g i s a summary of g e n e r a l b u s i n e s s and f i n a n c i a l c o n d i t i o n s t h r o u g h o u t t h e s e v e r a l F e d e r a l R e s e r v e D i s t r i c t s d u r i n g t h e month of A p r i l , a s c o n t a i n e d i n the f o r t h c o m i n g i s s u e of t h e F e d e r a l Reserve B u l l e t i n . F u r t h e r i n c r e a s e s i n t h e p r o d u c t i o n of b a s i c commodities, i n w h o l e s a l e p r i c e s , employment, wage r a t e s , and w h o l e s a l e and r e t a i l t r a d e , t o o k p l a c e i n March. Production» - Production in basic i n d u s t r i e s , according to the F e d e r a l R e s e r v e Boar d 1 s i n d e x , i n c r e a s e d 4 p e r c e n t i n March t o a l e v e l g p e r c e n t h i g h e r t h a n a t the 1920 peak and 67 p e r c e n t above t h e low p o i n t of 1921. The o u t p u t of p i g i r o n , s t e e l i n g o t s , a u t o - m o b i l e s , and crude p e t r o l e u m , and t h e m i l l consumption of c o t t o n exceeded a l l p r e v i o u s l y r e p o r t e d monthly t o t a l s . Building opera- t i o n s showed a f u r t h e r l a r g e e x p a n s i o n and the v a l u e of c o n t r a c t s l e t f o r r e s i d e n c e s i n March was the h i g h e s t on r e c o r d * Railroad f r e i g h t shipments have been l a r g e r e v e r y week t h i s y e a r than i n the c o r r e s p o n d i n g weeks of t h e p a s t f o u r y e a r s * Car s h o r t a g e h a s bwen reduced t o the l o w e s t p o i n t s i n c e September, c h i e f l y as t h e r e s u l t of the a d d i t i o n of new equipment, a d e c r e a s e i n t h e number of bad o r d e r l o c o m o t i v e s and c a r s , and a concerted, e f f o r t t o i n c r e a s e the a v e r a g e l o a d i n g s . - 2 - x-370) Employment i n the b u i l d i n g t r a d e s and in many l i n e s of m a n u f a c t u r i n g continued t o i n c r e a s e in the e a s t e r n S t a t e s . The s u r p l u s of u n s k i l l e d l a b o r in the West r e p o r t e d in e a r l i e r months i s b e i n g g r a d u a l l y absorbed by the s e a s o n a l i n c r e a s e i n farm work* A number of l e a d i n g t e x t i l e m i l l s , s t e e l m i l l s and p a c k i n g p l a n t s announced g e n e r a l wage advances r a n g i n g between 11 and c e n t , and numerous 12-1/2 p e r wage advances in o t h e r i n d u s t r i e s a l s o were r e - ported* Trade, - March s a l e s by department s t o r e s r e p o r t i n g t o F e d e r a l Reserve Banks were 22 p e r cent above t h o s e of March a y e a r ago, p a r t l y because E a s t e r p u r c h a s e s were made i n March t h i s y e a r , whereas l a s t y e a r such p u r c h a s e s were l a r g e l y d e f e r r e d u n t i l A p r i l . Stocks of goods h e l d by department s t o r e s were 6 per cent l a r g e r than those h e l d a y e a r ago but t h i s i n c r e a s e was n o t as l a r g e a s t h e i n c r e a s e in s a l e s and hence the r a t e of stock t u r n o v e r has been somewhat more rapid» S a l e s by mail o r d e r houses were l a r g e r than f o r any month s i n c e November 1920, and par cent l a r g e r than i n March 1922* Wholesale t r a d e in a l l r e p o r t i n g l i n e s was l a r g e r t h a n in March a year ago. Wholesale p r i c e s . - Wholesale p r i c e s as measured by t h e Bureau of Labor S t a t i s t i c s index advanced 1*2 per cent d u r i n g March , and were 15 p e r cent above the low p o i n t of J a n u a r y 1922. As in r d c e n t months the p r i c e s of m e t a l s and b u i l d i n g m a t e r i a l s showed t h e g r e a t e s t i n c r e a s e s , w h i l e f u e l p r i c e s showed a f u r t h e r d e c l i n e * f r o m r e c e n t high l e v e l s . Compared with a year a g o , metals were 37 p e r cent and - 3 - b u i l d i n g m a t e r i a l s 23 p e r c e n t h i g h e r . X-3703 re- The cost of l i v i n g i n c r e a s e d s l i g h t l y mora than 1 p e r cent d u r i n g March t o a l e v e l of 3 P e r cent h i g h e r t h a n a year a g o . Bank Crgd.it, : ,rcwth - Durin t , the month p r i o r t o A p r i l 11 a more moderate in the demand f o r c r e d i t from member banks i n l e a d i n g c i t i e s I ' s s u l t e d i n an i n c r e a s e of about ,000 ,OCO i n t h e i r loans made l a r g e - l y f o r commercial p u r p o s e s , as compared with an i n c r e a s e of # 3 ^ , 0 0 0 , 0 0 0 in the p r e c e d i n g month* Through withdrawal of f u n d s from investments and a f u r t h e r i n f l o w of g o l d , member banks have been a b l e to meet d e mands of t h e i r customers f o r i n c r e a s e d c r e d i t ana c u r r e n c y i n d e p e n d e n t l y of t h e Reserve Banks„ Consequently, the t o t a l volume of F e d e r a l Reserve Bank c r e d i t * measured by t o t a l e a r n i n g a s s e t s has remained r e l a t i v e l y c o n s t a n t d u r i n g the p a s t month, and i n f a c t s i n c e the s e a s o n a l l i q u i d a t i o n a t the t u r n of the y e a r , The volume of Federal Reserve n o t e s i n c i r c u - l a t i o n has a l s o changed but l i t t l e a s the l a r g e r demand f o r h a n d - t o hand money h a s been met c h i e f l y by an i n c r e a s e in o t h e r forms of money in c i r c u l a t i o n , " There has been l i t t l e change i n money r a t e s from those p r e v a i l i n g i n March.
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