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FEDERAL RESERVE BOARD STATEMENT FOR THE PRESS X-4124 For Release in Morning Papers Monday, J u l y 25, ig24The following i s a summary of general business and f i n a n c 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 f o r the months of June and J u l y , as contained in the forthcoming i s s u e of t h e Fede r a l Reserve B u l l e t i n , Production of oasic commodities and f a c t o r y employment showed f u r t n e r l a r g e d e c l i n e s during June* Trade, both a t wholesale and r e t a i l , a l s o decreased during t h e month and was in smaller volume t h a n a year ago. PRODUCTION; The Federal Reserve Board*s index of production in b a s i c i n d u s t r i e s , a d j u s t e d t o allow f o r seasonal v a r i a t i o n s , declined about 9 per cent in June to a point 22 per cent below the l e v e l of the f i r s t two months of the year e Irbn and s t e e l and cotton manufacturing i n d u s t r i e s continued to show the most marked curtailment of a c t i v i t y , and decreases were general in other industries. Factory employment decreased 3 per cent in June, the metal, automobile, t e x t i l e , and l e a t h e r i n d u s t r i e s r e p o r t i n g the l a r g e s t r e d u c t i o n s i n f o r c e s , Value of b u i l d i n g c o n t r a c t s awarded in June was g per cent smaller than i n May, though k per cent l a r g e r than in June of l a s t y e a r . Condition of the corn crop on J u l y 1, as r e p o r t e d by the Department of A g r i c u l t u r e , was the lowest on record f o r t h a t date and i n d i c a t e d a probable y i e l d about 5^0,000,000 bushels l e s s than l a s t year * Condition of the cotton crop was r e p o r t e d l e s s s a t i s f a c t o r y than a month e a r l i e r , while f o r e c a s t s f o r wheat and oats were l a r g e r than in J u n e . L *• -Z~ R-R A ^ . .. ^j) X-4124 TBABE: Railroad shipments decreased i n June and were about 15 per cent l e s s than a year ago, owing t o smaller loadings of a l l c l a s s e s of f r e i g h t except grain and l i v e s t o c k , Wholesale t r a d e showed a f u r t h e r s l i g h t d e c l i n e i n June and was 11 pgr cent smaller than a year a g o . Sales of hardware, drugs, shoes, and dry goods decreased, while s a l e s of g r o c e r i e s and meat incre ase d s l i g h t l y . Sales of department s t o r e s and chain s t o r e s showed more than the usual seasona l decrease ..during June and were smaller than l a s t y e a r . Mail order s a l e s i n June showed l e s s than the usual seasonal d e c l i n e and were l a r g e r than a year ago. Department s t o r e s f u r t h e r reduced t h e i r stocks of merchandise and s l i g h t l y increased t h e i r outstanding o r d e r s . PRICES: Wholesale p r i c e s , as measured by t h e index of t h e Bureau of Labor S t a t i s t i c s , d e c l i n e d more than one per cent in June t o a l e v e l below the high point f o r t h i s y e a r . 5 P e r cent P r i c e s of a l l groups of commodities, ex- cept c l o t h i n g , showed d e c l i n e s and decreases were p a r t i c u l a r l y l a r g e f o r b u i l d ing m a t e r i a l s . During the f i r s t t h r e e weeks of J u l y quotations on wheat, corn, and hogs advanced sharply, while p r i c e s of sugar, c o t t o n goods, and iron and s t e e l products were lower. BAHK CREDIT: Commercial loans a t member banks i n leading c i t i e s during June and the f i r s t two weeks of J u l y remained a t a r e l a t i v e l y constant l e v e l , considerably below the peak reached i n A p r i l , w h i l e investment holdings and loans s e cured by stocks and bonds increased r a p i d l y and c a r r i e d t o t a l loans and i n vestments to the high point f o r the y e a r . Dezrand d e p o s i t s , owing p a r t l y to -3- X-4124 the growth of bankers 1 balances a t f i n a n c i a l c e n t e r s , advanced to a record level* At the r e s e r v e banks t h e r e was a continued d e c l i n e in discounts and an increase in purchases of government s e c u r i t i e s in the open market• As a consequence, t o t a l earning a s s e t s in the middle of J u l y were only s l i g h t l y l e s s than a t the beginning of June * Member bank reserve b a l a n c e s increased r a p i d l y t r e f l e c t i n g a r e t u r n flow of currency from c i r c u l a t i o n and f u r t h e r imports of gold; t o t a l d e p o s i t s a t the r e s e r v e banks on J u l y l 6 were l a r g e r t h a n a t any time since the o r g a n i z a t i o n of the system. Money r a t e s i n J u l y were comparatively steady but continued t o show a somewhat e a s i e r tendency* Discount r a t e s a t t h e Federal Reserve Banks of Kan- sas City and Dallas were reduced during July from 4 l / 2 t o 4 per cent*
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