The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE 706 BOARD STATEMENT FOR THE PRESS X-U163 For Release in Morning Papers Saturday, September 27, 1924, The 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 t h e months of August and September, as cont a i n e d in the forthcoming i s s u e of the Federal Reserve B u l l e t i n . Production i n b a s i c i n d u s t r i e s was maintained during August a t about the same l e v e l a s i n the two preceding months and f a c t o r y employment showed a s l i g h t i n c r e a s e , Wholesale p r i c e s , e s p e c i a l l y those of a g r i c u l t u r a l products, showed a f u r t h e r advance. 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 to allow f o r seasonal v a r i a t i o n s , continued in August a t the same l e v e l as in June and J u l y . Production of s t e e l was s u b s t a n t i a l l y l a r g e r than in July and the output of pig i r o n and m i l l consumption of cotton a l s o increased. Sugar meltings and production of a n t h r a c i t e and. zinc, on the other hand, were smaller. Factory employment increased s l i g h t l y i n August and average weekly earnings increased 4 per cent owing to l e s s p a r t - t i m e employment. Larger working f o r c e s were r e p o r t e d i n t h e t e x t i l e , l e a t h e r , and automobile i n d u s t r i e s . Building c o n t r a c t s awarded, contrary t o the usual seasonal t r e n d , were 3 per cent l a r g e r in August than in J u l y . Crop c o n d i t i o n s showed f u r t h e r improvement in August and t h e September 1 e s t i m a t e s of production by the Department of A g r i c u l t u r e were l a r g e r f o r wheat, c a t s , b a r l e y , and p o t a t o e s . corn, c o t t o n , and tobacco, however, were s m a l l e r . Estimated y i e l d s of Harvesting has X-U163 7 0 7 proceeded r a p i d l y t h i s y e a r , and the August marketing of wheat wag l a r g e r than in e i t h e r of the l a s t two years • TRADE: Bank d e b i t s , which r e f l e c t the volume of business t r a n s a c t i o n s s e t t l e d by check, showed about the usual seasonal decrease in August, but were l a r g e r than a year ago. Railroad shipments increased s l i g h t l y , as a r e s u l t of l a r g e r loadings of miscellaneous merchandise, g r a i n and coal• Wholesale t r a d e was 7 P e r cent l a r g e r than in J u l y , owing t o seasonal i n c r e a s e s in s a l e s of dry goods, shoes, and meat, but continued to be smaller than a year ago. Department s t o r e s a l e s showed l e s s than the usual increase i n August and were 7 P ej * cent smaller than l a s t year• Mail order s a l e s increased more than usual a t t h i s season and were one per cent l a r g e r than in August, 1923# Merchandise stocks of department s t o r e s at the end of August f o r the f i r s t time t h i s year were smaller than on the corresponding date of 1921. 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 , increased 2 per cent in August and were a t about the same l e v e l a s a year ago. The advance was due l a r g e l y to f u r t h e r i n c r e a s e s in p r i c e s of farm products and foods, though a l l other commodity groups except metals and f u e l a l s o advanced* During the f i r s t t h r e e weeks of September p r i c e s of wheat, rye, wool, and rubtrer increased while those of cotton, s i l k , petroleum and metals d e c l i n e d . BAW CREDIT: loans and investments of member banks in leading c i t i e s continued to increase during the four-week period ending September 10 and on t h a t date reached a record f i g u r e about $1,000,000,000 above the l e v e l of three -3months e a r l i e r , X-U1S3' 708 The l a r g e s t i n c r e a s e was ir. loans on stocks and bonds and commercial loans a l s o i n c r e a s e d , owing p a r t l y t o seasonal demands f o r credit* The growth of investments by member banks continued though at a somewhat slackened r a t e , At the Federal r e s e r v e banks t h e r e was a f u r t h e r i n c r e a s e in the holdings of government s e c u r i t i e s and of acceptances with t h e r e s u l t t h a t i n the middle of September, although d i s c o u n t s were a t t h e low point f o r the y e a r , the t o t a l volume of r e s e r v e bank c r e d i t was h i g h e r than a t any time since l a s t s p r i n g . Seasonal i n c r e a s e in tnc demand f o r currency was r e f l e c t e d in a d e c l i n e in cash r e s e r v e and a t the r e s e r v e banks i n c e r t a i n of the a g r i c u l t u r a l d i s t r i c t s in an i n c r e a s e of Federal r e s e r v e note c i r culation. S l i g h t l y f i r m e r c o n d i t i o n s in the New York money market in l a t e August and e a r l y September were r e f l e c t e d i n a s l i g h t advance in the r a t e on commercial paper from 3-3 l / ^ t o 3 l/1-1 V3T sent. A f t e r the middle of September a r e c u r r e n c e of e a s i e r c o n d i t i o n s followed Treasury o p e r a t i o n s * The September 15 o f f e r i n g of one-year T r - u s m y C e r t i f i c a t e s bore 2 3 / 4 per cent i n t e r e s t , t h e same r a t s as the six-months 1 i s s u e s o l d i n J u n e . September 25,
@FedFRASER