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118 P.-822 BOARD OF GOVERNORS OF THE FEDERAL HESERVE SYSTEM STATEMENT FOR THE PRESS The following summary of general business and finandal conditions in the United States, OO.sed upon statistics for March and the first half of April, wi.ll appear in the May i3sue of the Federal Reserve Bulleti.n and in the monthly revie-ifS of the Federal Reserve Banks. For release in morning papers, Saturday, April 19, 1941 Industrial activity increased further in March but declined somewhat in the first hal£' of April o1·ring to temporary reductions in output of bituminous coal and automobiles. Wholesale prices of me.ny corrunodities advanced considerably and the Government took steps to limit price advances of some additiom:J.l industrial materials. Production V)lume of industrial output continued to increase in March and the Board's seasonally adjusted index rose from 1hl to 143 per cent of the 1935-39 average. Activity increased further in most dur- able goods industries, particularly in those producing na-::hinery, aircraft, ships, and armarnent. Steel production increased to about 100 per cent of rated capacity. Automobile production, v;hich usually increases considerably in lJiarch, showed little change front tLe bigr1 rat•:: re11c;hed in Februa.ry. In the first half of April output ·Nas reducecl considerably owing to a shutdovm at plants of the Ford Motor Company during an industrial dispute which was settled about the middle of the month. lietail sales of R-822 -2- new and used cars advanced to new peak levels in March and dealer's stocks at the beginning of April amounted to about a month's at the current rate of sales. tained at unusual~ supp~ Output of lumber, which had been sus- high levels during the winter months, rose less than seasonally. Activity in the textile and shoe industries increased further in March. Cotton consumption rose to a record level of bales and there was also an increase in rayon deliveries. textile mills activity was sustained at the p~ak 854,000 At wool rate rE;lached in Feb- ruarJ, not showing the usual large seasonal decline, and in the chemical and rubber industries further advances were reported. Bituminous coal production rose considerably, while output of crude petroleum was maintained in March at about the rate that had prevailed in the four preceding months. In the first half of April coal production declined sharply, however, as most mines were- closed pending conclusion of contract negotiations between mine operators and the miners' unidh. Production of nonferrous metals continued in large volume in March and deliveries of refined copper showed a sharp rise as domestic production was supplemented by supplies received from South America. Construction contract awards rose sharply in.March and were larger than in any month since the middle of' 1930, according to the F. W. Dodge Corporation data. The rise was chiefly in awards f6r pub- licly-fina..'1Ced work, v,;hich had been reduced considerably in January and February, and in privo.te nonrestdentiR.l projects, 'particularly 1?9 1.80 H-822 -3factory construction. Awards for private residential building, which had been unusually large during the winter months, showed less t-han the customary seasonal rise in lvlarch. Distribution In March distribution of conanodities to consumers was sustained at the high level reached in February. Sales at mail-order houses and department stores increased sea.sonally and variety store sales showed more than the usual seasonal rise. Freight-car loadings increased by about the usual seasonal amount. Loadings of coal and grain rose considerably, while ship- ments of miscellaneous freight, which in previous months had risen steadily, on a seasonally adjusted basis, showed a smaller increase than is usual at this t.ime of year. Commodi.ty prices Prices of basic commodities continued to advance sharply from the middle of March to the middle of April. There .were substan- tial increases in prices of domestic foodstuffs and further advances in burlap, cotton, ru'ober, and lead. Increases nere also reportGd in wholesale prices of a number of manufactured products ~md the general index of the Bureau of Labor Statistics rose two points to 83 per cent of the 1926 average. Informal action was taken by the Government to discourage price increases of some additional industrial materials and maximum price schedules were established for steel, bituminous coal, secondary and scrap aluminum and zinc, and iron and steel scrap. Sharp 181 R-822 -4- reductions in prices of some kinds of nonferrous metal scrap resulted. Announcement of an expanded Federal purchase program for hog, dairy, and poultry products was follo-Hed by pr:ice increases for these and related products. Bank credit 'I'otal loans and investments at reporting member banks in 101 cities increased during March and the first two weeks of April. mercial loans continued to rise sub~1tantially, Com- and holdings of United States Government securities increased further, reflecting purchases of new Treasury offerings. United States Government security prices Prices of United States Government securities declined irr'egularly from March 15 to April 9 but subsequently rose sliuhtly. The 1960-65 bonds showed a net loss of about 3/!_. of l point on AprLi 15, following a rise of about 3-l/L, points in the previous month. The yield on this issue on April 15 rras 2.14 per cent, compared with 2.0:? per cent at the all-tLte peak in prices on Decer.tber 10, and 2.30 per cent at the recent low in prices on Februa!"J 15.
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