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X-4960 !~12~!1!~ ~~~~!LY~ ~~!~12 STATEMENT FOR THE PiiESS For releas.e in ~iiorning Papers, Wednesday, September 28, 1927. Tho following is a su.r:Jjno.ry of general business and financial conditions throughout the several Federal Reserve Districts, be-sed upon statistics for the months of August and September, as contained in the forthcoming issue of the Federal Reserve Bulletin. Industrial production increased in August, reflecting a growth in the o~~t of mines, m1d the distribution of commodities, both at wholesale and at retail, increased by more than the usual seasonal amount. The general level of wholesale commodity prices rose about one per cent, owing chiefly to advances in the prices of farm ~roducts. Production. Production of anthracite and bituminous coal, which showed a considerable decline earlier in the season, increased sharply in August and the early weeks of September, and this rise was reflected in an advance in the Board's index of mineral output from 98 per cent of the 1923-1925 average in July, to 106 per cent in August. The index of manufactures as a whole showed practically no change for the month. The iron and steel industry con~inued during August ru1d September with little change in demand or in production, and tho output of newsprint, lumber, and cement showed only customary seasonal ch~~get in August. Consumption of cotton remained ~~usually large for this season of the year, and there was an increase in the production of automobiles, which, howevor, remained below th:J output of August of last year. Out- put of shoes and rubber tires b.crcr·scd from July to August b;,r less than the customary seasonal amount. Factory :·;;Yploy;.l~:•t was in practically the samJ volume in August as in July, and both em~?loyment and production were smaller than a year ago. The volume of huilding contracts awarded in August was smaller than in August, 1926, which was a month of unusually large awards. The largest decreases, as compared with last year, were in the Boston, New York, and Chicago Federal reserve districv .. • • X-4960 - 2 - In the first half of Se-ptem"ber awords were in practic&lly the srune volume as in the corresponding :period of lnst ye~;r. The Department of Agriculture's estimate of cor:::. >):r-oduction on t}J.e basis of Septe~ber 1 condition was 2,457,000,000 bushels, compared with 2,647,000,000 har- vested in 1926. Ti1e totnl yield of V'heat is expected to be sor:1ewho.t lo.:-ge1· t:1a.n a. year ago. The forecast of the ;.,·ield of cotton vras 12,692,000 bales, reJ?rese:1ting of a reduction of 800,000 b<:tles from the August estir;1nte ru"'.d/over 5,000,000 b<:tles from L1st year's crop. Trade. Distribution of merchondise at wholesale and retail incre'l.sed more th'lll is usual in August, a'1d sales were generally lo..rE;er than in August of L1st year. Sales of wholcsnle firrns in most leading lines were larger tha.'"l a year ago. ven tories of dcpartmea t s to :res showed less them tnc usual se:::~.sonal I:-:- b.cr.::lasc b August ~.nd ago. Stocks carried "oy v:holcsa.le firms co::tL:IUcd in August generc.lly sr.1aller o.t the e::1d of the month were in about the some dollar -.rolumo ns [1. year thaa l::•s t year. Freight car lo::J.di:lgs of ne<:trly c.ll types of cor:unodi ties h1croased c'nsiderc.bly in Aug0-st [.1Ild the early part of September, but, with the exception of grains o.nd 1niscella...'1.eous products, loa.di::gEJ for nll groups co:1 ti11ued i::L smaller vo lu::1o t:'1nn i:: the srunc period of last year. Prices. Yiholesnlo cor:unodi ty prices, ::s nen.surod by the index of tho :Bureau of Labor Statistics, bcreo..sed fro:n 14& in July to 147 in August. Tl1.ore were lo:rgc in- creo.ses in the prices of fo:rm products o...."ld of clothing m'J.terials, v:l1.ilo most of the other groups showed only slight· cha:1ges. The -'Jricc of raw cotton advo:c.cod from 17 1/2 cents a pound on A;~gust l to over 23 cents on September 8, but since that date has declined by about three and sugar hogs, ce~ts a polli'"ld. Prices of cotton goods, cattle, also increased duri11g August and the first three weeks of September, . . X-4960 -: 3 - while those of gr<"'.insdocli:.1od; rcco:1tly thor::: ho.vo bce~1 reductions ili tho prices of some iron nnd stool products. Bank Crodi t. \ 'Iok1l loo..ns nnd investments of T,icmbor b::mks in lending cities botvroon Au€,ust incro~scd 17 o.:1d Soptorabor 21 Thoro -r:cro i:1crc~ocs by $400,000,000 to tho lflrgost figure on r::;cord. i11 lom1s 0:1 socuri ties n..."1d ir-1 inves t:!lcn ts '1.S w·ell ~-s the usual sc:•.so:::.o.l growth in lon;::.s for .'1.griculturnl nnd com.":lcrcial pur"Qoses. The volur,1o of reserve bc.c.1k crodi t incre.:::.scd d.uri:1g tho non t~1 cndi:1g Sel)tcraber 21, r:cfloctiLg tho so.~so::r,.l Th,:; bcror-.so was oc.: tiroly L. tics, ~.s gro>vtll L. tho do,::::t::d for cu.rrcr:.t t~1c ::~.nd r.r. export of gold. holdir..gs of acccpta:-:.ces n.."1d United StCl. tos socuri- t11oro v.·o.s li ttlc ch:::ngc in tho discour... ts for r;1o;:.bor bF>nks. I:a tho ope:: :.1oi:.cy cr:u·k:ctn, ro.tos on socuri ty lo::J.:1S incro·csod sligl1tly during Sopto;:1bcr, while rates o:1 cor.~.:orcic-.1 l)U"9or '"'.l."ld 90-d:::cy bo.:1kcrs' nccoptoncos rc.:1nb.od u:.1chn;.1t;:::d ut tho lowest lcvols of tho :roDX. Discou.."1t ro.tos at the Fcdero.l reserve bo.:.1ks of Philo..dolphio.., C:iico.go, S~"l Frcc:1cisco, ::_"ld Mi:1::.oo..polis wore reduced during Sc_9tonbor fro; .• 4 to 3 1/2 per cc:1t, t:1o ro.to provniling i:::1 the ot:1.cr cig:1t districts. "
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