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.... F E D E R .\. t R E S E R V E ST...\.TEii~lJ"T B C : .. R D FOR THE PRESS For roloo.so i:1 Morning P:l)CrJ, Mondo.y, August 29, 1927. Tho follo•aL.g is :1 su:nm:..Lry of go:1or::.l busL1oss :.'lld fil::1:1ci::J. co ildi tio•1s thro,lghout tho scvcr~'.l Fcdor~tl Reserve Districts, bused upo:1 stc..tistics for t:1o months of Jul;)' :::::·1d .August, e:.s co:1t:::.L:od i:: the forthcomLlg issue of tho Fcdor:::..l Rcs...:rvc :BullotL1. Industrio.l prod-..lCtion doclL1od L: July to :1 level bolo'.7 tho.t of ::. yo~1.r o.go, uhilc the Dopa.rtmont of L"..bor• s index of 1rholos:.:.lo prices ::.dv::~:1ccd for tho first time siilco la.st autum::~. Dor.::-:11d for bn:..1~~ credit shorrod :::. so:1soa:::..l L1crcnsc, lut cn.sy co ~1ditio;1s ·)rOV:'.ilcd ii"l tho mo•1c:,r m::.rkot. Production. Output of m.:t:luf·-.cturers dccli::od i:::. Jul;;r n:1d volume ns n ye··r :1go, :'!ld tl1o ··?roductio:l of 71:1.s mi--wr~J.s, ir: ')r:::'.ctic,'".ll;;,r tho some ·,7;1ich Yr:::.s furt~1er reduced during the month, ":7:J.S ::-.t t:1o lo·..·est level since.: cr;.rly i.:1 1926, :-r:10:1 tho n.:1thr:::.cito strike •;ro.s L1 T,)rogross. Iro 1 ::.:J.d stool "1roductio:1 i:1 Jul:J· vrc.s i:1 tho sm:::.llcst volume since 1925, o.:1d co:,tinucd. o.t ··Jr:~ctic~ll~· tho S:':r.c lovol duri -:.g the first three Vl'eeks of August. Automobile out-.JUt for JulJr c.:1d tl10 o::-crlJr >7eo:cs of Augu.st '.7:ts co :1sidor::cbl;;r belo•;r tho.t of tho corroSJ?Ondb.g moCJ.tll of l::tst ye::.r; production of rubber tires, nonferirous ¢-ct:>.ls ::md food products wcl"o smn.llor in July thn.n in the prccedir:.g n:o~1th. ~;,:1d Cottot. c:.ctivity of ·;:oolo~• consumption was smaller thn.n in June, but continued UllUSU:llly large for this sc:..:.so;.1 oft:C:.e yo~;.r. duction of lo::.thor, shoos, o.nd lur.1ber L1crec:.scd i:-.. July o.s compn.red "ilith F.:1ctory employment n.nd pa.:t' rolls shov1cd soo.son:~l oills ProJu~10. decre:1sos in July o.nd ucro smeller thal1 in n.ny month since 1924. Employocnt in coa.l minL1g hn.s been reduced in recent months, lllld reports indicnto sOi::o unonplo;y'T.'lcnt ·in cert.:1in of tho building tra.des owing to tho decline in tho construction of houses. Building contract awards in July ru1d in the first three weeks of August continued larger - 2 than a year ago, the increase reflecting chiefly a growth in a~ards fo~ engineering projects. The August 1 cotton report of the De11artment of Agriculture indicated a production of 13,492,000 bales or 25 per cent less than the record of last year. The indicated ;?roductio:1 of corn, though considerably than the eryectation in July~ was 262,000,000 bushels lower than the yiel~ le~';e:t ~ar- vested crop of 1926. The August estimate of 851,000,000 bushels of w:1eat bushels indicated an increase of 18,000,000/over the 1926 crop yield. Trade. Distribution of merchandise at wholesale and retail showed about usual seasonal decline in July. de:?a.l~tment firms and Compared with a year ~o sales of t~e w~1olosalo stores wore slightly smaller, owing largely to tho fe.ct that t!1.:;1•e was one loss business day in July of this yee:r than in July, 19?3. Sales of ma,il order houses end chein stores were somewhat larger than a yce::..· ago. Inventories of department stores continued to decline in July ro1d at tho ond of tho month wore sli~l1tly smaller than a year ago; and wholesale stocks also continued smnllor than last year. S!1ipmcnts of commodities 'Jy , freight d~crcnscd, contrary to the usual sc~sonal trend, and wore smaller in July and in the first two weeks of August thDn in tho same period of last ycru·. Pricos. The Bureau of Labor Statistics index of wholesale prices advQnccd in July, reflecting chiefly incro~.sos slib~tly in the prices of corn. livestock, cotton, and lco.thcr, while :;>rices of whoo.t, silk, metals, and building mo,teri3.ls declincd. Since the latter part of July pricoo of corn, cotton, 1nd cnttlo lvvo continued upward m1d thoso of whcnt, nonferrous metals, adva;.1cod, while hogs, l'lliiiber and hides hwc declined. ~d rubber ho.v~ clso x-493., --3- lc~di11g ci tics bot;rccn July 2rj the cro·:)-m.ovil1g so::,so:~1. ~uc: .A:u.gast 17, ~s is us'.l~cl ~.t th,; boginni:1g of Lo::'.ns o:1 socu.ritics, :i.s '.:ell ::,,:; com>:ncrci:--.1 lo·:-~1s, L1- crc::\scd, •;rhilo invcstmo·.1t hold.ii.1.;s docli::cd, ::;.::J.d. tot:-..1 lo::.:1s c:1d in.1restmo ts vrorc nbout ~60,000,000 brgor thee:: ~:. mo:,tJ.l o:~rlior. Tot:.::l "borrowings of rr.omcor b::-.::l<:s ::..t the reserve b::t::.ks i:1:::rc:•scd. sligl1tly bctuoc:1 July 20 ::md ~'l.ugust 24; thoro wets 3. grorrth of di scou~1ts :J.t the Fodor::tl Reserve Bank of Non York, p::,rtly offset by docli:!l.cs L1 other districts. T:::.orc was li ttlc chDJ.1go L1tho systom 1 s holdings of portfolio of U~itcd c.ccopt:~nccs ~nd States securities. Monoyro.tos o:a all cl:J.ssos of paper L1 the in August, ru1d wore a.t ::t lor;or level tho11 <:::. o~,on yonr ago. market dcclL.od sh<:l.Fl)ly Discount r::ttos c..t eight Fodcr::-,1 r cscrvo b::trik:s ·;wrc reduced fro:.1 4 to 3~· per cent. ::t gro·:rth L1 tho
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