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1 4 3 I E D 3 2 A L H E S B B V E 3 0 A 2 D STATEM3TT FOB THE PBISS For release in morning papers, Friday, May 27, 1527. The following is a summary of general "business and financial conditions throughout the severs1 Federal Reserve Districts, based upon statistics for the months of April and May, as contained in the forthcoming issue of the Federal Reserve Bulletin. Industrial output declined in April reflecting reduced activity "both in mines'*and in factories. Distribution of commodities by railroads and retail trade increased, and the level of prices showed a further slight decline. Production - Decreased output of industry in April, as compared with March, was due chiefly to the coal miners' strike* which caused a large decline in the production of bituminous coal. Among manufacturing industries, which as a whole were somewhat less active in April than, during the previous month when allowance is made for usual seasonal changes, reductions were reported in the iron and steel and textile industries, as well as in meat packing and in the production of building materials. The manufacture of motor cars, though it showed the usual seasonal increase in April, continued at a lower level than a year ago. Petroleum production continued in record volume, notwithstanding large stocks and declining prices. Value of building contracts awarded declined slightly in April from the record high figure in March, but was larger than last year. The dccline in building between March and April reflected reduced activity in the construction of commercial, industrial, and educational buildings, while contracts for residential and public buildings increased. On the basis of conditions on May 1, the Department of Agriculture forecasts a winter wheat crop of 594,000,000 bushels, or about 5 per cent less than in 1926. Digitized for and FRASER also in the Continued wet cold weather over much of the c o m belt spring wheat area has retarded the planting of spring crops. - 2 - X-4859 Trade - Commodity distribution at retail was 1- r.rer in April than at the same season of any previous /ear, owing in part to the lateness of the Easter holiday. Department store sales were approximately 7 per cent larger than v in April of last year, and sales of mail order houses and chain stores were also in large volume. Wholesale trade showed about the usual decrease between March and April and continued smaller than in the corresponding month of last year. Inventories of merchandise carried by department stores were in about the same volume at the end of April as in March, while stocks of wholesale firms were smaller. Railroad Qar loadings were larger in April than is usual at that season of the year, reflecting chiefly large shipments of iron ore* coke, grain and grain products, but also increased movement of miscellaneous freight and of merchandise in less-than-carload-lots. Coal shipments were 27 per cent smaller in April than in the preceding month. Prices - In April there was a further slight recession in the general level of wholesale prices, as measured by the index of the Bureau of Labor Statistics, but in the first three weeks of I&ay price conditions were firmer. The decline in April reflected chiefly a decrease in the price of petroleum, lumber, and several of the nonferrous metals. There was little change in the level of agricultural prices which have been fairly constant since the beginning of the year. During the first three weeks of May prices of grain, cotton, iron and steel, petroleum, lumber and hides advanced, while those of livestock, coke and non-ferrous metal declined. Bank credit - Volume of credit of weekly reporting member banks, as measured by their total loans and investments, increased by more than $300,000,000 during the month ending May 18, and was on that date at the higbr est level on record. This growth represented for the most part an increase in the banks 1 holdings of investments and in the volume of their loans on stocks - 3 - X-4859 and bonds, while commercial loans shovjed relatively little change. At -the reserve banks there was a decrease during the month in total volume of credit outstanding, owing to the receipt of a considerable amount of gold from ^abroad, in addition to the purchase abroad by these banks of about $60,000,000 of gold that is now held earmarked with a foreign correspondent. The banks' holdings of acceptances and of Government securities declined by about $85,000,000, while discounts for member banks increased by about $45,000,000, apparently in response to the increased reserve requirements arising from the growth in the member bank deposits. Conditions in the money market were comparatively stable during the first three weeks of May and there wore no changes in rates quoted on prime commercial paper and on acceptances.
@FedFRASER