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F E :C E R J, L RE 2 E E V E B 0 ;, R D STATENIE!:.TT FO?. THE PRFSS X-3870 For Release in Mcrni!"lg Papers, Monday, October 29, 1923. The following is a sum.T.ary of general busir.. ess and financial conditions throughout the several Federal Reserve Districts, based upon statistics for the months of September and October, as contained in the forthcoming issue of the Federal Reserve Bulletin. Production of basic commodities declined during September, wholesale trade continued large, while retail trade, though larger than a year ago, increased less than is usual at this sea3on of the year. ~~Tholes ale prices, particularly those of agriculturcl products, advanced during the rr~nth. PRODUCTION: Production in basic industries, according to the Federal Reserve Board's index, declined 5 per cent during September, and was 10 per cent below the peak output of May. The principal factors in this decline were the suspension of anthracite coal mining for over two weeks and a substantial reduction in the production of iron and steel. production and sugar meltings were larger than in Lugust. Cement The decline in the production index, which is corrected for seasonal variations and reflects chiefly changes in the output of raw and semi-finished products, was not accompanied by a reduction of employment at industrial establishments. New building construction showed about the usual seasonal decline in September, due to a curtailment in contracts for residences. Contract awards for business and industrial buiJ.di::;;;s, however, were larger than in August. • • X-3370 -2- Estimates by the Department of Agri~lture 800 on October 1 showed some reduction from the September forecasts in the yields of corn, wheat, oats, and tobacco, but increased yields of cotton, potatoes, and hay. TRADE: Distribution of all classes of coffiffiodities by railroads continued at a high rate throughout September. \'tholesale trade, according to the Federal Reserve Board's index, in September rdached the largest total in three years and was 9 per cent larger than a year ago. Sales of meat, hardware, and drugs were considerably larger while shoe sales were smaller. t~n in last September, Retail trade was slightly larger in September, but the increase was much less than is usual at this season of the year. Department store sales were 6 per cent more than in September, 1922, and stocks at the end of t~e month were 13 per cent larger than a year ago. PRICES: \'lhol esale prices increased over· 2 Jler cent during S 9ptember, according to the index of the Bureau of Labor Statistics, particUlarly large increases occurring i.n the prices of clothing, farm products, and foods. Fuel prices, on t~e other hand, declined in September for the eighth successive month, and prices of building materials and metals were also lower. During the first three weeks of October prices of certain farm products continued ·to advance, wheat and cotton reaching the highest points of the current year, while prices of hogs, coal, and metals declined. BJI.NK CREDIT : Demand for bank credit showed a seasonal increase in September • h -3- X-3370 and the early part of October, loans of member bar!ks in leading cities increasing by $116,000,000 between September 12 and October 10. This increase reflected chiefly the demand for commercial loans, which on the latter date stood at a new high point for the year, almost $100,000,C'JO above the total on September 12. Increases in the holdings of Government securities by these banks were partly offset by reductions in corporate security holdings. The demand for accorrmodation at the Federal Reserve ~anks in some of the agricultural districts increased, while at the reserve banks in the East the volume of discounts for member banks declined. Federal Reserve note circulation continued to increase and in the middle of October was about $100,000,000 above the July level. In October money rates showed an easier t~ndency and after the fifteenth of the month rates for commercial paper in the New York rr.arket declined from a range of 5 1/4 ~ 5 1/2 to 5 ~ 5 1/4 per cent •
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