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F E D E B A L E E S E B V 5' BOA B 3 JE-4571- STATMWT F C B TEE P B E S S For Release in Morning Papers, S a t u r d a y , March 2 7 , 1926* The f o l l o w i n g i s a summary o f g e n e r a l b u s i n e s s and f i n a n c i a l c o n d i t i o n s throughout the s e v e r a l 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 o f F e b r u a r y and March, as cont a i n e d i n the f o r t h c o m i n g i s s u e of the F e d e r a l Reserve Bulletin* P r o d u c t i o n and t r a d e c o n t i n u e d i n February a t the h i g h l e v e l of the p r e c e d i n g month., w h i l e t r o g e n e r a l average of p r i c e s d e c l i n e d and was lower i n F e b r u a r y than a t any time s i n c e t h e l a t t e r p a r t of 1 9 2 4 . Production.The F e d e r a l R e s e r v e B o a r d 1 s i n d e x o f p r o d u c t i o n i n b a s i c i n d u s t r i e s , which i s adjusted for seasonal variations, i n d i c a t e d a c o n t i n u a t i o n of pro- d u c t i v e a c t i v i t y d u r i n g F e b r u a r y I n a b o u t t h e same volume as i n t h e p r e c e d i n g two m o n t h s . anthracite, Mill consumption of cotton and the output of f l o u r , copper, and newsprint showed i n c r e a s e s in February, when a l - l o w a n c e i s made f o r u s u a l s e a s o n a l c h a n g e s , and t h e o u t p u t o f i r o n a n d s t e e l and lumber remained p r a c t i c a l l y unchanged. and the p r o d u c t i o n o f cement d e c l i n e d * Activity in the woolen industry A u t o m o b i l e p r o d u c t i o n was i n c o n - s i d e r a b l y g r e a t e r v o l u m e i n F e b r u a r y and was l a r g e r than a y e a r a g o , a l though s m a l l e r t h a n i n the c o r r e s p o n d i n g month o f 1 9 2 4 . Employment and e a r n i n g s of f a c t o r y workers i n c r e a s e d , a f t e r t h e s e a s o n a l r e c e s s i o n o f J a n u a r y t a n d w e r e i n February a t p r a c t i c a l l y the same l e v e l s a s d u r i n g the l a t t e r part of 1925, The v o l u m e o f b u i l d i n g c o n t r a c t s a w a r d e d d e c l i n e d both i n January and i n February, but remained l a r g e r than i n the corres- ponding months of l a s t year. R e p o r t s by f a r m e r s to t h e Department of A g r i c u l t u r e of i n t e n t i o n s t o -2- X-4571' p l e a t i n 1926 i n d i c a t e t h a t the a c r e a g e of spring w h e a t - a a d tobacco w i l l be slightly smller, t h e a c r e a g e o f co m - i l l h e a b o u t t h e s a m e , a n d t h a t o f o a t s , b a r l e y , h a y , o n d p o t a t o e s l a r g e r tha.i t h a t i n 1 9 2 5 . Trade W h o l e s a l e t r a d e i n Feb m a r y was i n a b o u t t h e same v o l u m e a s a y e a r a g o . s m a l l e r volume of s a l e s was r e p o r t e d f o r g r o c e r i e s , dry g o o d s , and hardware, w h i l e s a l e s of meats, s h o e s , and drugs were l a r g e r . I n v e n t o r i e s of w h o l e s a l e firms d e a l i n g i n g r o c e r i e s , dry goods, shoos, and hardware were s m a l l e r a t the end o f February than a year ago. Trade at department s t o r e s and a t m a i l order h o u s e s was l a r g e r than i n February of l a s t year and dep a r t-ner-t s t o r e s t o c k s w e r e a b o u t 5 p e r c e n t g r e a t e r t h a n o n t h e c o r r e s ponding date of 1925. •freight car l o a d i n g s c o n t i n u e d at about the sane d a i l y r a t e i n Februa r y as i n the p r e c e d i n g two months. Shipments of merchandise i n less-than- carload-lots and of miscellaneous commodities were p a r t i c u l a r l y large. Prices The g e n e r a l l e v e l o f w h o l e s a l e p r i c e s , Labor S t a t i s t i c s index, a s measured by the B u r e a u of a f t e r r e m a i n i n g unchanged f o r two months, d e - c l i n e d i n F e b r u a r y t o a p o i n t s l i g h t l y b e l o w t h e lo*; f i g u r e o f 1 9 2 5 , r e p o r t e d f o r l a s t May. The g r e a t e r p a r t o f t h e d e c l i n e s i n e 3 l a s t autumn has been in p r i c e s of a g r i c u l t u r a l commodities. In February p r i c e s of a l l major groups o f commodities, excep t f u e l s , d e c l i n e d and p a r t i c u l a r l y large reductions occurred in the p r i c e s of g r a i n s , cotton, wool, s i l k , and rubber. P r i c e advances in February were shown f o r p e t r o l e u m , coke, and p a p e r . During t h e f i r s t t h r e e weeks of March p r i c e s of g r a i n s , cotton, wool, and s i l k c o n t i n u e d to d e c l i n e and r e c e s s i o n s were a l s o r e p o r t e d i n the -prices of sugar and hardwood lumber. -3- X-4571 8 5 2 ^ani: C r e d i t . At member a a n k s i n l e a d i n g c i t i e s demand f o r l o a n s chiofly f o r com- m e r c i a l p u r p o s e s s h o w e d a n i n c r e a s e , p a r t l y s e a s o n a l i n c h a r a c t e r , "between t h e m i d d l e o f F e b r u a r y a n d the m i d d l e o f March, and on March 17 t h e t o t a l volume of t h e s e l o a n s was c l o s e to t h e h i g h -ooint r e a c h e d l a s t autumn. A f a r t h e r d e c l i n e o f l o a n s on s e c u r i t i e s , w h i c h a c c o m o a i i i o d t h e s h a m r e c e s s i o n i n s e c u r i t y p r i c e s i n xiarch, c a r r i e d the t o t a l t o a p o i n t n e a r l y $ 4 3 0 , 0 0 0 , 0 0 0 below t h a t roacned a t the end of the year# Following a growth during February i n the volume of r e s e r v e bank c r e d i t o u t s t a n d i n g , t h e r e was a s h a r p d e c l i n e e a r l y i n March t o a b o u t t h e sam> l e v e l as a y e a r ago• F a c t o r s c o n t r i b u t i n g to the d e c l i n e have been c o n t i n u e d i m p o r t s of g o l d and some r e d u c t i o n i n member bank r e s e r v e r e q u i r e ments, a s w e l l a s the temporary abundance of funds r e s u l t i n g from the e x c e s s o f T r e a s u r y d i s b u r s e m e n t s o v e r r e c e i p t s a r o u n d March 15# Open market r a t e s on prime commercial p a p e r , a f t e r a s l i g h t d e c l i n e i n F e b r u a r y a d v a n c e d i n March to 4~1 / 4 - 4-*l/2 p e r c e n t , had p r e v a i l e d s i n c e l a s t October• the l e v e l w h i c h
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