The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
X-7121 » 859 FEDERAL ft| S 3 R VE BOARD STATEMENT FOR THE PRESS For r e l e a s e i n Morning Papers, Monday, March 28, 1932. The following summary of general b u s i ness and f i n a n c i a l conditions i n the United S t a t e s , "based upon s t a t i s t i c s f o r the months of February and March, 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 i n t h e monthly reviews of t h e Federal r e serve banks • Volume of i n d u s t r i a l production and f a c t o r y employment increased from January to February by an amount smaller than i s usual at t h i s season. Im- provement in the banking s i t u a t i o n during February and the f i r s t t h r e e weeks of March "as r e f l e c t e d i n a d e c l i n e in bank suspensions and a r e t u r n flow of currency from the p u b l i c t o the banks. Production and employment - Output of i n d u s t r i a l products increased l e s s than s e a s o n a l l y i n February and the Board's index, which makes allowance f o r the usual seasonal v a r i a t i o n s , declined from 71 per cent of t h e 1923-1925 average to 70 per c e n t . A c t i v i t y i n the s t e e l i n d u s t r y during February and the f i r s t t h r e e weeks of March showed l i t t l e change from t h e January r a t e , although o r d i n a r i l y s u b s t a n t i a l i n c r e a s e s a r e reported a t t h i s time of y e a r . Automobile production continued i n small volume, showing none of the u s u a l seasonal expansion, and t h e number of cars produced i n the three-month period ending i n February was about 35 per cent l e s s than i n the corresponding period a year ago. In the lumber i n d u s t r y , output declined f u r t h e r , c o n t r a r y to seasonal tendency. A c t i v i t y at cotton m i l l s and shoe f a c t o r i e s increased by more than the seasonal amount and was a t about the same l e v e l as i n t h e corresponding month l a s t y e a r . Volume of employment at f a c t o r i e s increased i n February by somewhat l e s s X-71S 3 6 0 —2— than the u s u a l seasonal amount. In the i r o n and s t e e l , automobile and machinery i n d u s t r i e s t h e number employed showed an i n c r e a s e smaller than i s usual i n t h i s month, and at lumber m i l l s a continued d e c l i n e i n employment was r e p o r t e d . At establishments producing f a b r i c s , wearing a p p a r e l , and shoes volume of employment increased by more than t h e seasonal amount. Daily average value of t o t a l b u i l d i n g c o n t r a c t s awarded, as r e p o r t e d by the F. W. Dodge Corporation, showed l i t t l e change i n February and the f i r s t half of March, and f o r the period between the f i r s t of January and t h e middle of March the value of c o n t r a c t s was 65 per cent l e s s than a year ago, r e f l e c t i n g continued d e c l i n e s i n r e s i d e n t i a l b u i l d i n g as well as i n other types of c o n s t r u c t i o n ; p a r t of t h e decrease i n the value of awards r e f l e c t s reductions i n b u i l d i n g c o s t s . D i s t r i b u t i o n - Carloadings of merchandise and of miscellaneous f r e i g h t showed none of the u s u a l seasonal i n c r e a s e i n February, while s a l e s a t department s t o r e s remained unchanged, as i s u s u a l a t t h i s season. Wholesale p r i c e s - Wholesale commodity p r i c e s , as measured by t h e index of the Bureau of Labor S t a t i s t i c s , declined f u r t h e r from 67 per cent of the 1926 average f o r January t o 66 per cent f o r February. Between the f i r s t week of February and the t h i r d week of March, t h e r e were i n c r e a s e s i n the p r i c e s of cotton, l i v e s t o c k , and meats, while p r i c e s of g r a i n s , nonferrous metals and imported raw m a t e r i a l s including s i l k , sugar, and rubber declined considerably. Bank c r e d i t - In t h e banking s i t u a t i o n the important developments i n February and the f i r s t h a l f of March were a considerable r e d u c t i o n i n the number of bank suspensions and a r e t u r n flow of currency from the p u b l i c to X-7121 S 6 i *-3™ the baiilcs. The c o u n t r y ' s stock of monetary gold declined i n February hut i n - creased somewhat i n the f i r s t h a l f of March. Member "bank r e s e r v e "balances, a f t e r decreasing almost continuously since l a s t summer, showed a s l i g h t i n crease f o r the f i r s t two weeks i n March. Purchases of United S t a t e s Govern- ment o b l i g a t i o n s by the Federal r e s e r v e banks beginning i n March were accompanied by a considerable d e c l i n e i n member bank indebtedness t o the r e s e r v e banks. Loans and investments of member banks i n leading c i t i e s continued to dec l i n e u n t i l the middle of March when t h e r e was a s u b s t a n t i a l i n c r e a s e , owing l a r g e l y to the banks 1 purchases of United S t a t e s Government s e c u r i t i e s , issued on March 15. Demand and time d e p o s i t s of the se banks decreased f u r t h e r during February but showed l i t t l e change i n the f i r s t h a l f of March. Open market r a t e s on acceptances and commercial paper declined during e February and the f i r s t h a l f of March. During t h i s p e r i o d y i e l d s on Treasury and other high grade bonds decreased to the lowest p o i n t s i n c e e a r l y December, but a f t e r the middle of t h e month y i e l d s on high grade corporate bonds increased s omewhat.
@FedFRASER