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FEDERAL RESERVE-BOARD STATEMENT FOR THE PRESS X-4101 For Release in Morning Papers Friday, June 2J, 1924. The following i s a summary of general business and financ i a l conditions throughout the several Federal Reserve D i s t r i c t s , based upon s t a t i s t i c s for the months of May and June, as contained in the forthcoming issue of the Federal Reserve Bulletin. Production of basic commodities and factory employment showed unusually large declines in May and were considerably below the l e v e l of a year ago. Purchases at wholesale and r e t a i l also declined during the month and were somewhat below l a s t year's volume. Commercial loans at member banks decreased and there was a further decline in money r a t e s , PRODUCTION: The Federal Reserve Board's index of production in basic indust r i e s , adjusted to allow for seasonal variations, declined about 10 per cent in May to a point about 18 per cent below the peak reached a year ago. Particularly marked decreases were "shown for production of iron and steel and mill consumption of cotton* Output of anthracite, cement, and tobacco products, on the other hand, was s l i g h t l y larger than in April. Factory employment declined 4 per cent in May, the number of employees being reduced in almost a l l reporting industries. The largest reduction of working forces occurred in the t e x t i l e , metal, automobile, and leather industries. The value of building contracts awarded in May was 13 per cent l e s s than the month before and for the f i r s t time since the beginning of the year f e l l below the corresponding month in 1$23« -2- X-UlOl The Department of Agriculture f o r e c a s t s as of June 1 indicated smaller y i e l d s of wheat, oats, and barley as compared with the harvests of 1923. The: condition of the cotton crop on May 25 was 5 per cent lower than a year ago and 7 per cent below the average condition for the past ten years, TRADE: Railroad shipments showed a s l i g h t increase in May, but were 8 per cent "Bnaller than a. year ago. Car loadings of a l l c l a s s e s of f r e i g h t , with the exception of grain and l i v e s t o c k , were smaller than in May 1923Wholesale trade decreased s l i g h t l y in May and was 6 per cent l e s s than i n May, 1923. Sales of dry goods, shoes, and hardware were much small- er than a year ago, while drug sales were s l i g h t l y l a r g e r . Retail trade at department stores and mail order houses declined during May more than i s usual at that season and was smaller than l a s t year. Department store stocks were U per cent snailer in May than in April and 3 P e r cent larger than a year e a r l i e r . PRICES: Wholesale p r i c e s , as measured by the index of the Bureau of labor S t a t i s t i c s , declined 1 per cent during May to a l e v e l about 8 per cent below the high point reached in the spring of 1923- Prices of a l l commodity groups, with the exception of food, declined in May. During the f i r s t half of June quotations on wheat, corn, rye, and s i l k increased, while prices of hogs, b e e f , cotton, and lumber declined, BAM CREDIT: Decreased demand for credit for current business requirements ? -y 4 m x-uioi 4 5 3 between the middle of May and the middle of June was r e f l e c t e d i n a smaller •volume of borrowing for commercial purposes at member banks i n leading cities. Further purchases of corporate s e c u r i t i e s by these banks and larger loans on stocks and bonds, however, resulted in an increase for the month i n t h e i r t o t a l loans and investments. There was an unusually large increase i n net demand deposits of these banks, which carried the t o t a l of these deposits t o the highest figure on record. At the Federal reserve banks between May 21 and June 18 there was a further decline in discounts f o r member banks and in'acceptances purchased i n the open market. Government security holdings, on the other hand, increased and t o t a l earning a s s e t s were somewhat larger than a month ago. The p r e v a i l i n g ease in the money market was r e f l e c t e d i n a further decline from 4 l / U to 3 l / 2 - 3 3 / 4 per cent in rates on prime commercial paper in New York. The June 15 issue of six-month Treasury c e r t i f i c a t e s . *» bore a rate of 2 3 / 4 per cent, compared with 4 per cent on a similar o f f e r ing l a s t December. Discount rates a t the Federal reserve banks of Cleveland, Ricjamond, Atlanta, Chicago, S t . Louis, and San Francisco were reduced from 4 l / 2 to 4 per cent during June, and the rates in Boston, New York, and Philadelphia were reduced to 3 V 2 per cent.
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