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X-6317 FEDERAL RESERVE BOARD STATEMENT TOR THE PRESS j 3 9 4 For r e l e a s e i n Morning Papers, Monday, May 27, 1929. The f o l l e w i n g i s a summary of general "business and f i n a n c i a l conditions throughout the s e v e r a l Hederal Reserve D i s t r i c t s , "based upon s t a t i s t i c s f o r the months of April and May, as w i l l appear i n the forthcoming i s s u e of the Federal Reserve B u l l e t i n and the monthl y r e p o r t s of the Federal r e s e r v e "banks. , I n d u s t r i a l a c t i v i t y continued a t a high l e v e l i n A p r i l , and the volume of f a c t o r y employment and p a y r o l l s increased f u r t h e r . Loans and investments of member "banks i n l e a d i n g c i t i e s continued to decline "between the middle of April and the middle of May, and were a t t h a t time a t approximately the same l e v e l a s a year ago. P r o d u c t i o n — I n d u s t r i a l a c t i v i t y increased i n April to the h i g h e s t l e v e l oh record. The i r o n and s t e e l and automobile i n d u s t r i e s continued e x c e p t i o n a l l y a c t i v e during A p r i l . A c t i v i t y i n copper r e f i n i n g , lumber, c e m e n t , ' s i l k and wool t e x t i l e s , and the meat-packing i n d u s t r y increased, and production of cotton t e x t i l e s showed a l e s s than seasonal r e d u c t i o n . Factory employment and p a y r o l l s i n c r e a s e d , c o n t r a r y to the seasonal t r e n d . Output of mines was a l s o l a r g e r i n A p r i l . Copper and a n t h r a c i t e coal p r o - duction i n c r e a s e d and the seasonal decline i n output of bituminous coal was smaller than u s u a l . Petroleum production declined s l i g h t l y . P r e l i m i n a r y r e p o r t s f o r the f i r s t h a l f of May i n d i c a t e a continued high r a t e of o p e r a t i o n i n the i r o n and s t e e l i n d u s t r y . Output of lumber and bitumi- nous coal was somewhat l a r g e r during the f i r s t p a r t of May than a t the end of April. Building c o n t r a c t s awarded during the month of April i n c r e a s e d sharply and f o r the f i r s t time i n f i v e months approximated the t o t a l f o r the corresponding month i n the p r e c e d i n g y e a r . The i n c r e a s e was not continued, however, i n the «3- X-6317 395 f i r s t p a r t of May when awards aver&ged 20 per cent below the same p e r i b d i n May, 1928. During April most c l a s s e s of "building showed seasonal i n c r e a s e s over March, the l a r g e s t "being i n c o n t r a c t s f o r r e s i d e n t i a l "building and p u b l i c works and u t i l i t i e s . Distribution-wShipments of commodities "by r a i l i n c r e a s e d during April and were the l a r g e s t f o r t h i s month i n any r e c e n t y e a r . The i n c r e a s e from March r e f l e c t e d l a r g e r loadings of miscellaneous f r e i g h t , lumber, l i v e s t o c k and o r e . During the f i r s t h a l f of May shipments of f r e i g h t continued to i n c r e a s e . Sales a t wholesale declined seasonally i n A p r i l , except i n the case of grocery and hardware f i r m s . In comparison with A p r i l , 1928 a l l l i n e s of t r a d e r e p o r t i n g to the Federal r e s e r v e system showed i n c r e a s e s . Department s t o r e s a l e s were a l s o smaller i n April than i n March, "but continued above the l e v e l of a year ago. Prices—Wholesale commodity p r i c e s averaged s l i g h t l y lower in April than i n March, according to the index of the United S t a t e s Bureau of Labor S t a t i s t i c s , r e f l e c t i n g p r i m a r i l y d e c l i n e s i n p r i c e s of farm p r o d u c t s and t h e i r manufactures. P r i c e s of mineral and f o r e s t p r o d u c t s and t h e i r manufactures, on the average, showed l i t t l e change. There were i n c r e a s e s i n the p r i c e s of i r o n and s t e e l , and sharp d e c l i n e s i n copper, lead, and t i n . Seasonal d e c l i n e s occurred i n p r i c e s of coal and coke, while gasoline p r i c e s advanced. P r i c e s of farm products and t h e i r manufactures averaged lower i n April than i n March. P r i c e s of g r a i n , e s p e c i a l l y wheat, moved downward more sharply and wool and c o t t o n continued to d e c l i n e . Livestock and meat p r i c e s continued the upward movement of the previous month, but a t a slower r a t e ; h i d e s averaged s l i g h t l y h i g h e r i n p r i c e , and l e a t h e r somewhat lower. Among imported raw m a t e r i a l s , rubber, sugar, and c o f f e e showed marked p r i c e r e c e s s i o n s . Early i n May c a t t l e , h i d e s and wheat p r i c e s declined sharply and t h e p r i c e of rubber i n creased. -3- 396 X-6317 Bank: Credit—Daring the f o u r weeks ending May 15 loans and investments of member "banks i n l e a d i n g c i t i e s showed a decrease of n e a r l y $200,000,000, l a r g e l y i n loans on s e c u r i t i e s together with some f u r t h e r decline i n investments. All o t h e r loans, c h i e f l y f o r commercial and a g r i c u l t u r a l purposes, remained unchanged a t a r e l a t i v e l y high l e v e l . There was a f u r t h e r r e d u c t i o n i n the average volume of reserve bank c r e d i t outstanding between the weeks ending April 24 and May 22, owing l a r g e l y to add i t i o n s to the c o u n t r y ' s monetary stock of gold. The d e c l i n e was i n discounts f o r member banks; holdings of acceptances and of United S t a t e s s e c u r i t i e s showed p r a c t i c a l l y no change. Open-market r a t e s f o r commercial paper remained unchanged a s did r a t e s on prime bankers' acceptances, except f o r a temporary decline a t the end of April and the f i r s t week i n May. t h r e e weeks i n May. Bates on c o l l a t e r a l loans advanced i n the f i r s t
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