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X-G458 - - . F E .. •>«>?> A L S I S E E V««#B C A R D STATEMENT FOR THE PRESS For release in Morning Papers, Monday, December 23, 1929, The following i s a summary of general business and. financial conditions throughout the several Federal Reserve Districts, "based upon s t a t i s t i c s for the months of November and December as will appear in the forthcoming issue of the Federal Reserve Bulletin and the monthly reports of the Federal reserve "banks. Industrial production declined in November for the f i f t h consecutive month and was below the level of l a s t year. Retail sales at department stores continued in larger volume than a year ago. Whole- sale commodity prices moved dov/mardf in November and the f i r s t half of December. Production and employment — Production in basic industries decreased by 9 per cent in November, according to the Board1 s index, and was 5 per cent lower than a year ago. The decline in production, which began in midsummer, was r e s t r i c t e d prior to November largely to industries in which the expansion during the e a r l i e r p a r t of the year had been exceptionally rapid, p a r t i c u l a r l y iron and s t e e l , automobiles, and related industries. The same industries showed the largest reductions in November, but there were declines also in the copper, cotton and wool t e x t i l e s , and shoe industries, and, in smaller degree, in s i l k t e x t i l e s and coal. also curtailed. Production of crude petroleum was Volume of building contracts awarded during the month continued to be considerably smaller than in the corresponding period X-6458 333 -2- of 1928. Employment in factories was also reduced during November to a level s l i g h t l y "below a year ago, and there was a somewhat larger decrease in factory payrolls. The decline in employment since midr- sunmer, however, has been relatively smaller than that i n the physical volume of production. Employment was in smaller volume than in November a year ago in the automobile, iron and steel, lumber, and rubber products industries, and larger in the machinery, t e x t i l e s , paper and printing, leather, and chemicals industries. Distribution — Distribution of commodities, as measured by f r e i g h t - c a r loadings, was in smaller volume in November than in October, r e f l e c t i n g larger-than-seasonal decreases in most classes of freight. Miscellaneous f r e i g h t in less-than-carload l o t s , however, which includes chiefly commodities for r e t a i l trade, showed the usual seasonal change. Department store sales in leading c i t i e s during the month were about one per cent larger than l a s t year* Increased sales were reported in four agricultural d i s t r i c t s — Richmond, Kansas City, Dallas, and San Francisco. In certain of the large industrial d i s t r i c t s — Boston, New York, Chicago, and Cleveland — sales were approximately the same as in November 1928. Wholesale prices — Wholesale prices were a t a lower level in November than in October and continued to decline during the firfet half of December. The downward movement, which had previously involved / principally commodities with organized exchanges, became general during the l a t t e r p a r t of the period. X-6458 -3— Bank credit — Liquidation of tank credit, which had "begun early in November, continued throughout that month and the f i r s t two weeks of December1* and on December 11 total loans and investments of reporting member banks were at about the same level as on October 23, prior to the increase caused by the withdrawal of funds by non-banking lenders. At member banks in Hew York City loans were somewhat larger and investments considerably larger on December 11 than on October 23, while at reporting banks outside New York loans on securities, a l l other loans, and investments were smaller than on that date. Reserve bank credit outstanding was also reduced during November and the f i r s t two weeks of December, largely in consequence of reduction in balances of member banks at the reserve banks, which accompanied the liquidation of member bank c r e d i t . The decrease in reserve balances released reserve funds in more than s u f f i c i e n t volume to meet the export demand for gold amounting to $65,000,000 during the period, as well as the seasonal currency requirements. Between November 6 and December 18, United States security holdings of the reserve banks increased considerably, while their holdings of acceptances declined somewhat, and there was a reduction of $250,006,000 i n the indebtedness of member banks. Money r a t e s i n the open market continued to decline and the discount rate, which had previously been reduced at five reserve banks, was lowered at the Kansas City Bank from 5 to 4§- per cent.
@FedFRASER