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R-117
28?
BOA~D
OF GOVERNORS
OF THE
_FED]:R.AL RESERVE SYSTEM
STATEMENT FOR THE PRESS
For release in morning papers,
Thursday, November 25, 1957.
The follov,ing summary of general
business and financial conditions
in the United States, based upon
statistics for October and the
first three weeks of November,
will appear in the December lssue
of the Federal Reserve Bulletin
and in the monthly reviews of the
Federal Reserve banks.
Volume of industrial production showed a further sharp decrease in October end the first three weeks of November, and there
was a reduction in employment.
Commodity prices continued to decline.
Distribution of commodities to consumers was maintained at tho level
of other recent months.
Production and
emplo~nent
· In October tb.e Board 1 s seasonally adjusted index of inG.us·trial production was 103 percent of the:
192~-1925
average as compared
v;ith 111 percent in Septembwr and an average of 116 percent in the
first eight months of this year.
There wa.s a marJ.{ed curtailment of
activity in the durable goods industries.
Output of steel ingots,
vvhich had .. shown a steady declim, since Allgust, was at an average rate
of 59 percent of capacity in October and by the third
ber the rate had dc;clined to 56 percent.
w~ek
in Novem-
Automobile production in-
creasGd considerably in October as most mo.nufactut'8rS bogan assembly
of 1938 model cars.
In the first three weeks of November output of
288
R-117
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...
automobiles showed little change from the level reached at the end of
October, with assemblies by one leading manufacturer continuing in exceptionally small volume.
Production of lumber and of plate glass de-
clined further in October.
In the nondurable goods industries, where
output had been declining since the spring of this year, there was a
further decrease in October.
Cotton consumption showed a sharp re-
duction and activity at woolen mills and shoe factories continued to
There was an increase in output at sugar refineries, where
de~line.
activity hEtd been at a low level in September.
changes in output were largely seasonal.
In moet other lines
Mineral production continued
at about the level reached at the close of 1936 and maintained throughout this year.
Value of construction contracts awarded in October and the
first he lf of November was smaller thr.n
cording to figures of the F. W. Dodge
j
n the precerUng six weeks, acTbe decline vm s
Corpornt~Lon.
chiefly in privecte nonresidentiGl construction.
Fnctory employrmmt declined substantially in October
~:md
pay-
rolls showed little ch[;nge, although &n increase is usu::.l at this
season.
Dec:;.int.:::' in the number employed were reported by fcctories
producing steel, machinery, lumber, and textiles, and in many smaller
industr les.
factories.
at
Th"'re was
c;
seo.sonc~l
incre::."!Se in employment
£~t
o.utomobile
Errmloyr:wnt and pB.yrolls increc,sed SE.-2Sumclly at mines and
establis~!Jnents
crgo.ged in wholesr:le cmd
ret::-~il
trtuie.
Distrib~tiog
Sales at depar0msnt stores c.nd mril order sr:lE;s increased
seasonally in October.
•.t'hroughout the yor;r s?les at
de~)!:;.rtment
stor8S
289
R.-117
-·3-
have been sustained, with seesonal fluctuations, and the Boardis adjusted lndex of these sales has shown little change.
Freight-car loadings declined in October and the first half
of November, reflecting smaller shipments of forest products, ore, and
miscellaneous freight.
Commodity prices
Prices of industri:-el
mat(~rials,
particularly nonferrous met-
c:.ls, steel scrap, rubber, end hides, declinffd further from the middle
of October to the third week of November, and there were some decreases
in the prices of finished industrial products.
Livestock and meat
prices declined substantially and coffee prices dropped sharply following the announcement by Brazil of modif:i.cation of its control policy.
Bank credit
During the first half of November the Federal Reserve banks
purchased $28,525,000 oi' United States Government securities, in accordance with the policy adopted in
SE~pte:nber
to provide additional re-
serves for meeting seasonal currency and other
requir<c~ments.
From the
middle of October to November 17, excess reserves of member banks increased from about $1,000,000,000 to
~l,lOO,OOO,OOO,
reflecting the
Federal Reserve security purchases and a considerable decline in requircd reserves at member banks in New York City, caused partly by a
reduction in demand deposits arising from n liquidation of brokers'
loans.
Loans to brokers nnd
de~lers
reported by hanks in loading
cities declined by t:250,000,000 d-uring the four weeks
<~nding
November
290
H-117
-417.
Commercial loans, following a steady increase for several months,
declined C'l.fter the middle of October.
Mi::;mbGr benks in Nev: York City
increased their holdings of United States Government securities by over
(150,000,000 while banks outside New York City showed
duction.
D~posits
c.
further rc-
continued to show moderate reductions.
@FedFRASER