The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
t60
X-4517
FE.DERAL
RESERVE
BOARD
STATEME!rr FOR THE PRESS
For release in Uorning Papers
Mondey, March 2S, 1927.
a
The following is
s~nary of general business and
financial conditions throughout the several Federal
Reserve Districts, based u~on statistics for the
months of February and March, as co:1tained in the
forthcoming issue of the Fodcrcl F~servo Bulletin.
Industri.3.l output increased furt:1er in February a."ld was slightly larger
than a year ago, and d.istri but ion of
than for the
corrcs~onding
co~·nodi ties
period of any
by the railroads was larger
~revious
year.
The general level of
wholesale "J?rices continued to decline and rras in February at the lo;vest level
since the summer of 1924.
Production
Production of manufactures increased in Febru.ar;;.· for the second consecutive
month, and the output of minerals, after declini:1g in
more in February to the record level reached last
~nd
Ja.."l.uar~r,
Dec~~ber.
advanced once
Factory production
employment, howevert continued smaller than during the corresponding month
of last year.
Production of iron and steel has increased steadily since December,
and reports indicate that operations of steel mills in March were at almost the
sa~e
high rate as in March, 1926.
~tomobile
production increased from 234,000
cars in Ja"l.uary to 295,000 cars in February, and weekly figures of em?loyment
in Detroit factories indicate some further additions to production in March, but
output has continued much smaller then a year ago.
Daily average
consum~tion
of cotton by mills in February was larger than in any -,revious month on record,
but activity of· w,ole:J. mid siU:: mills dccrco.sod ns cor:!"90.rcd. "il'ith January. Pro•
duction of bituminous coal has boon maint~incd in lr:trgc volUMe, while that of
X-4817
2
anthraci to has been
considernbl~:
smaller d.u.ring the first two
The ou tpu.t of building materials was
of tl1is ye.::tr than in the corres·;onding
mont~1s
The val"'J.e of buildi:v; contracts awarded in February was 3 per
period of 1926.
~ent
reduced.
smaller than in the
of last ;)'ear, but awards for the first three
s~e ~onth
weeks in March were in an~roximately the same volume as in 1926.
Contracts in
Southeo..stern and Northwestern states have been considerably smaller than a year
ago, while those in the Ce:1tral West have been much larger.
Trade.
Retail. trade showed less than the usual seaso~al decline between January
and February.
Februa~·
Sale' of department stores and chain stores were larger than in
of last year, while those of mail order houses were smaller.
sale firms reported a
~~aller
m1ole-
volume of business in February than a year ago,
and this decline occurred in nearly.all leading lines.
Inventories of depart-
ment stores increased in February in anticipation of the usual expansion in
spring trade, but the growth wns less than is customary at this season and at
the end of the month stocks were slightly smaller than a year ago. Stocks of
merchandise carried by wholesale
fir~s
also increased in February, but they were
generally smaller than in the corres·.;onding month of last year.
Railroad shi1)ments of com!:lodities have. increased steadil;>r since January by
more than the usual seasonal
last year, owing to larger
~ount
and have exceeded those for the same
shi~ments
~riod
of coal, of miscellaneous commodities, and
of merc:..-,.andise in less-tl'l.an-car-load lots.
Prices
lf.holesale prices, according to the index of the Bureau of tabor Statistics,
co~tinued
to decline in February.
Among non-agricultural products decreases
X-4317
3
occurred in the urices of coal, pctrolcun, iron ::t:J.d steel, nonferrous metals,
and bJ.:T.ber, and tho index for non-c:.gricultural oriccs as a grou:;> was at the
lowest post-war level.
Prices of l i vostock and. livestock
ing materials advanced in Februar:l·
~roducts
and of cloth-
During tho first three weeks of March there
rrere decreases in prices of grains, li vostock, sugar, silk, wool, coa.l, petroand gasoline, while prices of potatoes, pig iron, hides, and rubber ad-
le~~.
Vfu'1Ced.
Banl-:: credit
Demand for
co~~ercial
credit at member ba"lks in leading cities increased
seasonally between the middle of February and the middle of March.
There was
also growth in the volume of funds used in the security market as indicated by
increases in loans to brokers and dealers in'securities.
loans of the reporting banks at the end of the
of last autumn.
Financial
o~erations
~riod
Consequently total
were close to the level
of the United States Treasury around the
middle of March, with distursements temporarily in excess of receipts, resulted
in a temporary ab'andance of funds which was reflected at me:nber
ban~-::s
in lead-
ing cities in a growth of deposits, in reduced indebtedness at the reserve
ba~{s,
and in increased holdings of securities.
At the reserve
ba~s.
follo~ing
changes in holdings of bills and securities
acco:n?anying the financial operations of the Treasury, the total volume of
credit outstanding on March 23 was somewhat larger than four weeks earlier.
Conditions in the money market in March were slightly fi!T.ler than in February.
Rates on pr~e co~nercial paper advanced from
4 per
cent to
4 - 4 1/4
cent and call money was also higher, while rates on acceptances declined sowe';ihat.
per
@FedFRASER