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196 F.-213 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SY$TEM STATEivlEN'r FOR TEE PRESS The following summary of general business and financial conditions in the United St~ttes, based upon stati3tics foi' February nnd th8 firet three weeks of r.~arch, will Pppcar in thu April is3uc of the Fudera.l li.cserve Bulletin and in th8 monthly reviews of the Federal ltcserve banks. For release in morning papers, FridaypMarc:1 25, 1938. VolumG of manufacturing production showfld :tittle chcngo from January to February, wh~le output of minerals dt:JcUned further. Awards for residential ouilding incrcasod somewhat in February clnd rose consid;.::;nLbly 5.n the first half of March. Production -----The Boa.rd 1 s seasonally <:~djusted index of industrial production, which :i.ncludes both ffi.'l."lUf&.cturing and mining, 'Nf.';.s 79 percent of the 1925- 1925 n.vert,ge in February as compc:crNi ·rlith 80 percent in J·c.nuary. The chiefl~r by e. reduction in output of minerals, particularly of crude petroleum. Steel ingot pro- decline in the total ir:dex v.r;:,.s accounted for duction showed ::tbout the usual of capacity in February. season~1l increase Lumber production rose In the first three weeks of March uctivity at steel mills e>.nd automobile fE:.ctori.es was a.t about th<;: ary. averaged 52 p<Jrcont Automobil.e prod.uctiou d.::cree.sed slightly further, and output of plate glr.ss continued to decline. seasonally. ~~d s::~.me £Vc)rage re:.te as in Febru- In the nondurable goods industr.ies there were moderat~ increases in output in February at textile mills and shoe fc:,ctories, where production 1.97 -2- R-215 has recently been at low levels, whil0 at meat-packing establishments activity declined. Value of construction contracts awarded, as reported by the I<'. W. Dodge Corporation, showed a sharp decline from January to February, reflecting chiefly a marked reduction in awards for publicly-financed projects. Contracts for residential building increased moderately. In the first half of March there was a considerable further increase reported for residential building and awards for other construction also increased. Employment Factory employment and payrolls increased by somewhat less than the usual seasonal amount between the middle of January nnd the middle of February. The Board's seasonally adjusted index of factory employment was at 85 percent of the 1923-1925 average in February as compared with 84 in January. In the durable goods industries decreases were general in FE::bruary, though not so large as in preceding months. Employment in non- durable goods inoustries increased somewhat following a period of rapid decline. Employment in trade, at mines, on the railroads, and in the con- struction and public utility industries decreased somewhat from the January level. Distribution Value of department store salGs, as measured by the Board's seasonally adjusted index, declined from 90 percent of the 1925-1925 average in January to 88 percent in February, and in the first three weeks of March there was a further decrease. Sales nt variety stores and mail order houses in February showed somewhat less thn.n the usu.o~l seasonal increase. -:s- 1.98 R-213 Freight--car loudings decre£~sed further in February, reflecting chiEfly redc:.ced shipments of co.'ll n.nd grrdn, ond showed ;.._ seasonal increase in the first two woekG of March. i.s e.bont 25 percent lGss th::m .<l_ 'I'he current level of carlo'ldings year ago. C~rnm,9di t;y-:_pr -lceJ The general level of wholesale commodity prices, as measured by the Bur;~~,.u of Labor Statistics' index, showed little change from the middle of Fe bruar~; to the third week of Mn.rch. 'lhorE: wt:rE.: seasonal increases in nrices of livestock and. nwats, -;·;bile prices of su·::h basic commodities r.c, Viberct, cotton, rubber, zincjl tend bituminous coal declined. Bank_S~£;di t Exc8s::: rsservGs of memb<3r hmks incre':lsed during the first three woeks of rb.reh to over $1,500,000,000, the highest level since laf;t April. bulk of the increo.sc occurred at of the month held ovl:r Nev~ ~,'?OO,OOO,OOO During Fcbruar:.r o.nd th.:;: fin:t cho.nge in de~)osits and in tot.u1 bunks in 101 leading citi..;s. gntiono d·JCl~ned York C:Lty bc,nks, which in h~llf 1ot,~r.:.s t~1e The third of excess reserves. of Mr;rch, there wes little net and inve;;tm,·mts at reporting .nernber Holdings of Unlted States Govurnment obli- a-t b(mk;:; in New York but incrG&sed in Chicago. Commercial leans, which had decreased sharpl,v in th.:: four preced lng months, showed a fur t.her mocwra te decline. Money rat<JS o.r!d bond y:i.elrJs Conditions in th'~ short-term money mr,_rl~et continued easy in March. Hates on Tree,sury bills vtere slightly lov;er and prime COIT:mercio.l paper was quoted at .:~ range of from 3/4 to 1 percent as ags.inst the flat l percent -4rate which had prevailed since a year ago. R-213 Yields on Treasury bonds and notes, after declining for the past six J!lonths, o.Jvanced slightly around the middle of March. Yields on corporate bonds also o_dvanced in March, reflecting principally declines in prices of railroad bonds. 199
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