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251. X-44:60 F E DE R A L R E S : R VE B 0 A R D STATE1.3NT FOR THE PRESS :Tor RolcaDe in Horning Papers, Saturd.a.y; Nover.:.ber 28, 1925. Tbe following is a sunliTlai';'y' of general business and financial conditions tbrour;hout tbe several Yederc;._l Ressrve Districts, based upon statistics for the months of October and November, as contained. in the forthcominG issJ.c of the }i'edcral Reser7e :Bulletin. Industrial activity and tha volurne of 1Nholesale and retail trade increased in October. Wholesale prices declined sowewha t to the lev·el prevailing at mid- year. Production. The Federal Reserve 3oarcl' c:; index of production in basic industries, which m3.kes allowance for seasonal changes, rose by about 4 per cent in Octo:. ,;T, reflecting increases in tho output of most of the 22 commocli ties included in the index. Particularly largo increases in activity wore sho\711 for tho iron and stool and textile industries, and the output of bituminous coal and of lumbor was in large volume. on record. Production of 8.utomociles in Octooer 1;·o.s the largest Pe_yrolls at factories, including industries not covered o;y tho pro- duction in1ex, increased in @Jctober to the highest level since ca.rly Ln 1924:. Tho V8.lue of b11ilding contracts awarded declined further in October, contrary to soasJn'J.l the usual/tonduncy in builcling activity botvveen September and October, but tho total Has considerably 1r~.rgor than in the corresponding month of n::1y othor year. Estimates by the Dopart:ncr:t of Agriculture i'!.1 I;ovcmber indicate a corn crop of 3,013,000,000 bushels and a c'Jtton crop of l5,2S8,or;o buleo, compared with 2,437,000,000 bushds and 13,628,8(;0 bales in 19~;4. llarkoting of crops vvas scaso'!.1- ally larger in October than in Sopt•3mber but averaged nearly 10 per cent loss a year ago. t~,an X-4460 -2- 252 Trade. Wholesale trade, according to the :Fcdoral Reserve J3onrd' s combil'wd inc ox of sales in six loadL1g lines, roached a seasonnl peal::: ic1 October and i7as in larger volume tha:1 for e:.ny month of the past five years. Sales at dcpnrtmcnt stores and mnil order houses, owing partly to favorable weather co;:;.di tbc:.:.,, showed co;:;.sidorablY.' more than the usual increase in October and were the largest on record for that m:mth. at wholoso.lc firms r:ere SiUc" 1.lcr Stocks of dr;)'goods I shoes, and hardware at the end of October than on September 30, but stocks of groceries were larger. Merchandise stocks at dc~partmont stores shoYied slightly more than the usunl increase in October, and wore sor::e';;hat ln.r&:;or than at the end of October a year aco. Freight cG.r loadi.:igs roo.ched a seasonal peak in october and totaled nore them in o,ny previous month, notwithstanding reduced shipments of a::1thraci to and of crains and e:;r<.:in products. Prices. T..11c Bureau of Labor Statistics index of 1:.-rwlcst:tlc ;:>rices, after remain- ing relatively constant for throe months, declh:eli from 160 in September to 158 in October, reflecting declines in the prices of agricultural products, particularly grains, livestock, meats, cotton, and sugar. prices of grain::;,, wool, s?-gar I Since November l pig iron, and rubber have increased. Bmlk credit. J3ctvicon the niddle of October and the mid.dlo of cornr::lcrcial c~1d }Jove1~ber, loans f6r \ .... ·t industrial purposes at mer;1ber barJcs in leading ci tics con- tinued in a volune about $450,000,000 larger than at r:lid-sur::u::er. Loans on securities increased further and total loans on November 11 wore about $1,000,000,000 larger than at the opening of the year. Dor.k:nd deposits in- creased. further during October and early Novm:1ber to a level near tho hit;h -3- poin.t of last Jn'::uo.r;r. At the reserve banks total bills and securities in Novaober ~ere in tho largest volun.c for the year and about $200,000,000 larger than a year ago. ! Mcr::bcr ba:1k borroYiings declined sopcvthat fro:o the high point reached early. in October, while acceptance holdings continued to increase and on Nove.nber 18 were larger than at bank credit since ar~ previous tine for the year. ~id-sunrner The growth in reserve was chiefly in response to the seaso~l increase of nonoy in circulation, which on Novenbcr 1 was about $180,000,000 lc.rf:or than on August 1. Duri!lf; the latter part of October and early pc.rt of Nover.lbcr open narket rates for cor::r:ercial paper and ba:"U:ers acceptances rer.:o.i~1cd uncha.nsed at the levels ree.ched during the enrly autur.n. tho Federal reserve banks of Boston, Clcvela~d, substantially Discount rates at Philadelphia, a~d Francisco r1ore advanced fron 3 1/2 to 4 per cent during Novcnbcr. San
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