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E 719 FEDERAL RESERVE 3 0 AE D STATEMENT FOR THE HESS X-U175 For Release in Morning Papers Monday, October 27, IS24. 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 the months of September and October, as contained in the forthcoming issue of the Federal Reserve B u l l e t i n . Production of basic commodities, f a c t o r y employment, and d i s t r i bution of merchandise increased in September. During September and e a r l y in October t h e r e was a considerable i n c r e a s e in the volume of borrowing f o r commercial purposes. PRODUCTION: The Federal Reserve Board's index of production in b a s i c industries., adjusted to allow f o r seasonal v a r i a t i o n s , rose 9 psr cent in September, the f i r s t advance since l a s t January. Increased a c t i v i t y was reported in many l i n e s of ,industry including t e x t i l e s , iron and s t e e l , and c o a l . Factory employment increased 2 per cent during September, r e f l e c t i n g larger working forces i n n e a r l y a l l r e p o r t i n g i n d u s t r i e s . Average weekly earnings of i n d u s t r i a l workers increased s l i g h t l y , owing to a decrease i n the extent of part-time employment. Building c o n t r a c t s awarded showed a small seasonal decline in September, but were considerably larger than a year ago. Crop conditions, as reported by the Department of A g r i c u l t u r e , showed a f u r t h e r s l i g h t improvement during September, and the estimates cf production f o r spring wheat, o a t s , b a r l e y , and white p o t a t o e s on October 1 were l a r g e r than the month before. Estimates of the y i e l d s of corn, tobacco, and c o t t o n , however, were reduced. Marketing of wheat was exceptionally • -2r 720 X-4175 heavy in September ana exports of wheat and cotton were l a r g e r tha» f o r the same month of any recent year. TRADE: Distribution of commodities, as r e f l e c t e d in r a i l r o a d shipments, increased during September and was groats* than l a s t year, owing to larger loadings of miscellaneous merchandise, g r a i n , and coal. Haclesale trade was 11 per cent larger than in August, as a r e s u l t of increased business in almost a l l reporting l i n e s . Sales of groceries and drugs were l a r g e r than a year ago, while s a l e s of meat and shoes were smaller. Beta.il trade showed more than the usual seasonal increase in September, and sales of department stores and mail order houses were considerably l a r g e r than l a s t year. Merchandise stocks a t department stores increased more than usual during September, but continued to be s l i g h t l y smaller than a year ago. PRICES: Wholesale p r i c e s of farm products, clothing, f u e l , and metals declined somewhat in September, while p r i c e s of food products, b u i l d i n g materials, and chemicals advanced. The general level of p r i c e s , as measured by the Bureau of Labor S t a t i s t i c s ' i n d e x , was s l i g h t l y lower in September than im August. During the f i r s t half of October quotations on wheat, f l o u r , c a t t l e , hogs, wool, and rubber increased, while prices of cotton, lumber, and gasoline declined. BANK CREDIT: Daring the f i v e weeks ending October 15 loans and investments of reporting member banks in leading c i t i e s increased by more than $600,000,000- Credit deirand f o r financing the marketing of crops and t h e f a l l a c t i v i t y of trade vias r e f l e c t e d in increased commercial loans throughout the country and the 721 -> -X-4275 t o t a l volume of these loans rose to a level considerably above the peak of October, 1923. Member bank investments in s e c u r i t i e s continued to increase and loans on stocks and bonds a l s o advanced. A f u r t h e r growth of demand de- p o s i t s c a r r i e d t h e i r t o t a l to the highest f i g u r e on record. At the Federal reserve banks, discounts changed but l i t t l e in September \ and declined in tlie f i r s t three weeks of October f vihile holdings of acceptances increased considerably and there was a l s o scire increase in United States s e c u r i t i e s * As a consequence* t o t a l earning a s s e t s were larger than at any time since early in the year, larger currency requirements p a r t l y seasonal in character were r e f l e c t e d betw&en August 1 and October 1 in an increase of $140,000,000 in t h e t o t a l volume of money in c i r c u l a t i o n . Money r a t e s in the New York market re:uaizied r e l a t i v e l y constant in the l a t t e r p a r t of September and the early part of October. On October 15 the discount r a t e of the Federal Reserve Bank of Minneapolis was reduced from 4-1/2 to 4 per cent.
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