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Z i D BE A L B E S E B ! i BOARD STATEMENT FOB THE PBESS For r e l e a s e i n Morning P a p e r s Thursday, August 25, 1932, The f o l l o w i n g summary o f g e n e r a l b u s i n e s s and f i n a n c i a l c o n d i t i o n s i n U n i t e d S t a t e s , b a s e d upon s t a t i s t i c s f o r the months o f J u l y and August, w i l l a p p e a r i n the f o r t h c o m i n g i s s u e o f t h e Federal Beserve B u l l e t i n and i n the monthly reviews of the Federal reserve "banks. Volume o f i n d u s t r i a l o u t p u t d e c l i n e d s e a s o n a l l y f r o m J u n e t o J u l y w h i l e f a c t o r y employment a n d p a y r o l l s d e c r e a s e d b y more t h a n t h e u s u a l s e a s o n a l amount. I n J u l y t h e g e n e r a l l e v e l o f w h o l e s a l e p r i c e s was a b o u t 1 p e r c e n t h i g h e r t h a n i n J u n e , a n d i n t h e f i r s t h a l f o f A u g u s t p r i c e s o f many l e a d i n g c o m m o d i t i e s advanced c o n s i d e r a b l y . B e s e r v e b a n k c r e d i t d e c l i n e d somewhat i n t h e f o u r weeks ending August 17, r e f l e c t i n g c h i e f l y a s u b s t a n t i a l growth in the c o u n t r y ' s s t o c k of monetary g o l d . P r o d u c t i o n a n d Employment - I n d u s t r i a l p r o d u c t i o n d e c l i n e d b y a b o u t t h e u s u a l s e a s o n a l amount i n J u l y and t h e Board? s i n d e x , w h i c h i s a d j u s t e d t o a l l o w f o r the u s u a l s e a s o n a l v a r i a t i o n s , remained unchanged a t 59 p e r c e n t o f t h e 1923-1925 average. A c t i v i t y decreased s e a s o n a l l y in the s t e e l industry; by s l i g h t l y more t h a n t h e u s u a l s e a s o n a l amount i n t h e l u m b e r , c e m e n t , n e w s p r i n t , and m e a t p a c k i n g i n d u s t r i e s ; a n d b y s u b s t a n t i a l l y more t h a n t h e s e a s o n a l amount i n the automobile and l e a d i n d u s t r i e s . increases in July, declined. Output o f s h o e s , w h i c h o r d i n a r i l y At w o o l e n m i l l s a c t i v i t y i n c r e a s e d b y a s u b s t a n t i a l a m o u n t , and a t s i l k m i l l s t h e r e w a s a s e a s o n a l i n c r e a s e i n p r o d u c t i o n . Activity a t c o t t o n m i l l s d e c r e a s e d , a s i s u s u a l i n J u l y , w h i l e s a l e s of c o t t o n c l o t h by manufacturers increased considerably. level prevailing in June. Output o f c o a l i n c r e a s e d f r o m t h e l o w X-7234 — 2 — R e p o r t s on t h e v o l u m e o f f a c t o r y employment a n d p a y r o l l s showed s u b s t a n t i a l d e c l i n e s from the middle of June to the middle o f J u l y . In the machinery, women's c l o t h i n g , a n d h o s i e r y i n d u s t r i e s , and a t r a i l r o a d r e p a i r s h o p s , t h e number e m p l o y e d d e c r e a s e d b y c o n s i d e r a b l y more t h a n t h e u s u a l s e a s o n a l amount, and a t s h o e f a c t o r i e s t h e i n c r e a s e r e p o r t e d was s m a l l e r t h a n u s u a l . In the w o o l e n g o o d s i n d u s t r y a s u b s t a n t i a l i n c r e a s e i n employment w a s r e p o r t e d . V a l u e o f b u i l d i n g c o n t r a c t s a w a r d e d , a s r e p o r t e d b y t h e P . W. ifoflge Corporation, c o n t i n u e d a t a low l e v e l during J u l y and the f i r s t h a l f of August. P r d s p e c t s f o r many l e a d i n g c r o p s , i n c l u d i n g c o m , s p r i n g w h e a t , p o t a t o e s , and t o b a c c o , w e r e r e d u c e d somewhat d u r i n g J u l y , a c c o r d i n g t o t h e D e p a r t m e n t o f Agriculture. The e s t i m a t e d t o t a l w h e a t c r o p , b a s e d on A u g u s t 1 c o n d i t i o n s , i s 7 2 3 , 0 0 0 , 0 0 0 b u s h e l s , a d e c r e a s e o f about 1 7 5 , 0 0 0 , 0 0 0 b u s h e l s from l a s t y e a r ' s l a r g e crop, r e f l e c t i n g a r e d u c t i o n o f 3 5 0 , 0 0 0 , 0 0 0 b u s h e l s i n the w i n t e r wheat crop, o f f s e t i n p a r t by an e s t i m a t e d i n c r e a s e of 1 7 5 , 0 0 0 , 0 0 0 i n the s p r i n g wheat crop* The f i r s t o f f i c i a l c o t t o n e s t i m a t e , a s o f A u g u s t 1 , was 1 1 , 3 0 0 , 0 0 0 b a l e s , a s compared w i t h c r o p s o f 1 7 , 1 0 0 , 0 0 0 l a s t s e a s o n and 1 3 , 9 0 0 , 0 0 0 t h e y e a r b e f o r e . The i n d i c a t e d p r o d u c t i o n o f c o r n i s 2 , 8 2 0 , 0 0 0 , 0 0 0 b u s h e l s , s u b s t a n t i a l l y l a r g e r t h a n t h e c r o p s o f t h e l a s t two s e a s o n s and s l i g h t l y l a r g e r t h a n t h e f i v e - y e a r average. D i s t r i b u t i o n - Volume o f f r e i g h t t r a f f i c d e c r e a s e d somewhat f r o m June t o J u l y , and v a l u e o f d e p a r t m e n t s t o r e s a l e s was s u b s t a n t i a l l y r e d u c e d . W h o l e s a l e P r i c e s - The g e n e r a l l e v e l o f w h o l e s a l e p r i c e s , a s m e a s u r e d "by the m o n t h l y i n d e x o f t h e B u r e a u o f Labor S t a t i s t i c s , a d v a n c e d f r o m 6 3 . 9 p e r c e n t o f the 1926 average i n June t o 6 4 . 5 p e r c e n t in J u l y . Between the middle o f J u l y and t h e t h i r d w e e k o f A u g u s t p r i c e s o f l i v e s t o c k and m e a t s , w h i c h h a d p r e v i o u s l y a d v a n c e d c o n s i d e r a b l y , d e c l i n e d somewhat, w h i l e p r i c e i n c r e a s e s w e r e 177 X-7234 —3 — / r e p o r t e d f o r many o t h e r l e a d i n g c o m m o d i t i e s , i n c l u d i n g w h e a t , t e x t i l e raw m a t e r i a l s a n d f i n i s h e d p r o d u c t s , n o n f e r r o u s m e t a l s , h i d e s , s u g a r , c o f f e e , and rubber. Bank C r e d i t - The t o t a l volume o f r e s e r v e b a n k c r e d i t o u t s t a n d i n g , w h i c h had i n c r e a s e d b y $ 8 5 0 , 0 0 0 , 0 0 0 b e t w e e n t h e e n d o f March a n d t h e t h i r d w e e k o f J u l y , i d e c l i n e d b y $ 9 5 , 0 0 0 , 0 0 0 i n t h e f o u r w e e k s t o A u g u s t 1 7 , and i n t h e same p e r i o d member b a n k s i n c r e a s e d t h e i r r e s e r v e b a l a n c e s b y $ 4 5 , 0 0 0 , 0 0 0 . These changes r e f l e c t e d c h i e f l y the a d d i t i o n o f $ 9 5 , 0 0 0 , 0 0 0 to the c o u n t r y ' s s t o c k of monetary g o l d and an i n f l o w to the banks of $ 3 0 , 0 0 0 , 0 0 0 i n currency, f o t a l l o a n s a n d i n v e s t m e n t s o f r e p o r t i n g member b a n k s i n l e a d i n g c i t i e s w e r e $ 2 5 0 , 0 0 0 , 0 0 0 l a r g e r on A u g u s t 17 t h a n f o u r w e e k s e a r l i e r . Total loans of these banks c o n t i n u e d to d e c l i n e throughout the p e r i o d , w h i l e t h e i r i n v e s t m e n t s i n c r e a s e d s u b s t a n t i a l l y , r e f l e c t i n g an i n c r e a s e i n h o l d i n g s of U n i t e d S t a t e s Government s e c u r i t i e s i n c o n n e c t i o n w i t h T r e a s u r y f i n a n c i n g o p e r a t i o n s . Time d e p o s i t s i n c r e a s e d b y $ 9 5 , 0 0 0 , 0 0 0 and n e t demand d e p o s i t s b y $ 8 5 , 0 0 0 , 0 0 0 . Money r a t e s i n t h e o p e n m a r k e t r e m a i n e d a t l o w l e v e l s . Successive r e d u c t i o n s b r o u g h t t h e p r e v a i l i n g r a t e s on p r i m e c o m m e r c i a l p a p e r t o a r a n g e o f 2 - 2 l / 4 per cent in the f i r s t part of August.
@FedFRASER