The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
55C X-6079 FEDERAL RESERVE BOARD STATEMENT FOR THE PRESS For release in Morning Papers, Thursday, June 28, 1928. The following i s a summary of general business ani f i n a n c i a l conditions throughout the several Federal Reserve D i s t r i c t s , based upon s t a t i s t i c s for the months of May and June, as w i l l appear in the forthcoming issue of the Federal Reserve B u l l e t i n and the monthly reports of the Federal reserve banks. Industrial production continued during May in about the same volume as in the three preceding months. Wholesale and r e t a i l trade increased in May and the general l e v e l of commodity prices showed a further advance. Security loans of member banks, which were in record volume in May, declined considerably during the f i r s t three weeks in June. Conditions in the money market remained firm. Production—Production of manufactures,was s l i g h t l y smaller in May than in April, when allowance i s made for usual seasonal variations, while the output of minerals increased somewhat. Production of s t e e l declined in May. from the high l e v e l attained in April but was in about the same volume as a year ago. Since the f i r s t of June buying of s t e e l products has been l i g h t and there have been further decreases in production. Daily average produc- tion of automobiles was in about the same volume in May as in April and preliminary reports f o r the f i r s t three weeks in June indicate that factory operations were maintained at p r a c t i c a l l y the same l e v e l . A c t i v i t y of t e x t i l e m i l l s was somewhat larger in May and there were also increases in the slaughter of l i v e s t o c k and in the production of building materials, nonferrous metals, and c o a l , while the production of petroleum declined. The value of building contracts awarded during May, as reported by the F. W. Dodge -2- X-60J9 Corporation for 37 s t a t e s east of the Bocky Mountains, was larger than in any previous month, and awards during the f i r s t half of June exceeded those for the corresponding period of l a s t year. Indicated production of winter wheat, as reported by the Department of Agriculture on the "basis of June 1 condition, amounted to 512,000,000 "bushels, 40,000,000 bushels l e s s than the harvested production of 1927. Trade—Distribution of merchandise, both at wholesale and at r e t a i l , was in larger volume in May than in April. Making allowances for customary seasonal influences, s a l e s in a l l l i n e s of wholesale trade showed increases, although in most l i n e s they continued in smaller volume than a year ago. Department store s a l e s were larger than in April, and at about the same l e v e l as a year ago, while s a l e s of chain stores and mail order houses showed increases both over l a s t month and over l a s t year. Volume of f r e i g h t - c a r loadings increased further during May, but continued smaller than during the corresponding month of either of the two previous years. Loadings of miscellaneous commodities, however, which represent largely manufactured products, were larger in May of t h i s year than in that month of any previous year. Prices—The general l e v e l of wholesale commodity p r i c e s , as indicated by the Bureau of Labor S t a t i s t i c s index, increased in May by over one per cent to 98.6 per cent of the 1926 average, the highest figure recorded for any month since October 1926. There were increases in most of the principal groups of commodities but the largest advances in May as in April occurred in farm products and foods. Contrary to the general trend, p r i c e s of pig iron, hides, raw s i l k , f e r t i l i z e r materials, and rubber showed declines during the month. Since the middle of May there have been decreases in nrices of grains, hogs, sheep, p i g iron, and hides, while prices of raw wool, nonferrous metals, -3- X-6079. lumber, and rubber have advanced. Bank credit—Loans and investments of member "banks in leading ^Cities on June P0 showed a decline from the high point which was reached on May 16. Loans on s e c u r i t i e s , which had increased "by more than $1,200,000,000 since May l f £ 7 declined $200,000,000, while a l l other loans, including loans for commercial and agricultural purposes, increased somewhat. There was a small increase in t o t a l investments. During the four weeks ending June 20 there were withdrawals of nearly $75«000,000 from the country's stock of gold, and the volume of reserve "bank credit outstanding increased somewhat, notwithstanding a. decline in member "bank reserve requirements. Member "bank borrowing at the reserve "banks continued to increase and early in June exceeded $1,000,000,000 for the f i r s t time in more than s i x years. Acceptance holdings of the reserve "banks declined considerably, while there was l i t t l e change in their holdings of U. S. s e c u r i t i e s . After the middle of May firmer conditions in the money market were r e f l e c t e d in advances in the open market rates to the highest l e v e l s since the early part of 1924.
@FedFRASER