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i X-7144 FEDERAL RESERVE 3 3 7 . BOARD STATEMENT FOR THE PRESS For r e l e a s e i n Morning Papers, Thursday, A p r i l 28, 1932. The following summary of g e n e r a l 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 March and A p r i l , 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 the monthly reviews of t h e F e d e r a l r e s e r v e hanks. I n d u s t r i a l a c t i v i t y was i n smaller volume i n March than i n February, although u s u a l l y l i t t l e change i s r e p o r t e d a t t h i s season, and the number of employees a t f a c t o r i e s was a l s o reduced, contrary to seasonal tendency. Volume of r e s e r v e hank c r e d i t decreased i n March, but showed a considerable growth i n t h e f i r s t t h r e e weeks of A p r i l . Money r a t e s continued to d e c l i n e . Production and employment - Output of i n d u s t r i a l p r o d u c t s , as measured by the Board's s e a s o n a l l y a d j u s t e d index, declined from 70 per cent of the 1923-1925 average i n February to 68 per cent i n March. Daily output a t s t e e l m i l l s and automobile f a c t o r i e s decreased, c o n t r a r y to seasonal t e n dency, and a c t i v i t y a t woolen m i l l s declined sharply to t h e lowest l e v e l i n recent years. Cotton consumption by domestic m i l l s continued a t the February r a t e , although s a l e s of c o t t o n c l o t h d e c l i n e d , and output of shoes inc r e a s e d c o n s i d e r a b l y ; i n both t h ese i n d u s t r i e s production was a t about the same r a t e as a year ago. A c t i v i t y i n t h e lumber i n d u s t r y , which r e - cently has been a t a l e v e l about 45 per cent lower than l a s t y e a r , i n creased by more than the usual seasonal amount. Output of coal a l e o i n - creased considerably during March but declined i n e a r l y A p r i l . Volume of f a c t o r y employment and p a y r o l l s decreased from February to March, although an i n c r e a s e i s u s u a l a t t h i s season. There were s u b s t a n t i a l X 7M4 ' —S— r e d u c t i o n s i n working f o r c e s i n t h e s t e e l , automobile, machinery, and f u r n i t u r e i n d u s t r i e s , as well as a t woolen and s i l k m i l l s , while c l o t h i n g and shoe f a c t o r i e s showed a d d i t i o n s t o t h e i r working f o r c e s . Value of 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 some i n c r e a s e of a seasonal c h a r a c t e r during March and the f i r s t h a l f of A p r i l and was approximately o n e - t h i r d as l a r g e as last year. D i s t r i b u t i o n - R a i l shipments of merchandise, which o r d i n a r i l y i n cr e a s e i n March, showed l i t t l e change, and s a l e s at department s t o r e s i n leading c i t i e s i n c r e a s e d by l e s s than the estimated seasonal amount. Wholesale p r i c e s - The general l e v e l of wholesale commodity p r i c e s showed l i t t l e change between February and March, according to the Bureau of Labor S t a t i s t i c s . In the f i r s t two weeks i n March p r i c e s of many com- m o d i t i e s , i n c l u d i n g l i v e s t o c k and meats, advanced; between the middle of March and the t h i r d week i n A p r i l , p r i c e s of c o t t o n , s i l k , wool, h i d e s , sugar, s i l v e r , and t i n declined considerably, while p r i c e s of c o f f e e and petroleum i n c r e a s e d . Wheat p r i c e s showed wide f l u c t u a t i o n s but were a t about the same l e v e l i n the week ending A p r i l 23 as i n t h e f i r s t h a l f of March. Bank c r e d i t - The Federal r e s e r v e system's holdings of United S t a t e s Government s e c u r i t i e s , a f t e r i n c r e a s i n g continuously from e a r l y i n March, t o t a l e d $1,078,000,000 on April 20, an i n c r e a s e of $338,000,000 sinc e the end of February. This i n c r e a s e has been accompanied by some f u r t h e r de- c l i n e i n t h e r e s e r v e banks' holdings of acceptances and a r e d u c t i o n of $264,000,000 i n d i s c o u n t s . Member bank indebtedness t o the r e s e r v e banks showed a c o n s i d e r a b l e r e d u c t i o n i n a l l of the Federal r e s e r v e d i s t r i c t s . Total volume of r e s e r v e bank c r e d i t o u t s t a n d i n g , which had declined i n 330 m 339 X-7144 —3— March r e f l e c t i n g a continued, r e t u r n of money from c i r c u l a t i o n and an i n crease i n the c o u n t r y ' s stock of monetary gold, increased "by $115,000,000 during the f i r s t t h r e e weeks of A p r i l . This i n c r e a s e was accompanied "by a s u b s t a n t i a l growth i n member bank r e s e r v e b a l a n c e s . Total loans and investments of r e p o r t i n g member banks i n l e a d i n g c i t i e s continued to d e c l i n e during the f i v e weeks ending A p r i l 13. At banks i n New York C i t y , however, t h e r e was an i n c r e a s e i n investment holdings both of United S t a t e s Government s e c u r i t i e s and other s e c u r i t i e s , o f f s e t t i n g the d e c l i n e i n l o a n s , which continued u n t i l t h e middle of A p r i l . Open-market r a t e s f o r bankers acceptances showed s u c c e s s i v e reductions and on A p r i l 21 the o f f e r i n g r a t e f o r 90-day b i l l s was 7/8 of one per c e n t , the same r a t e as p r e v a i l e d between May and September, 1931. commercial paper a l s o d e c l i n e d . Rates on
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