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71 R-976 BOARD OF GOVER..."10R3 OF THE FEDERAL RESZRVE SYSTEM STATF.JviENT FOR THE PRESS For release in afternoon papers 9 April 22, 1942. Wed~1esday, The following sum;nar-.r of general business and financial conditions in the United States, ~ased upon statistics for March and the first half of April, will appear in the May issue of the Federal Reserve Bulletin a;.-1d in the monthly reviews of the Federal Reserve Banks, Industrial activity continued at a high rate in March and the first half of April. Distribution of commodities to consumers was maintained in large volume and commodity prices advanced further. Production .. Volume of industrial.production increased seasonally in March and the Board's adjusted index remained at 172 per cent of the 1935-39 average. Output of.durable manufactured products, now mostly war materials, continued to advance, reflecting mainly increased activity in the iron and steel, machinery, aviation, and shipbuilding industries. Production of lumber and cement, which had been maintained at unusually high levels during the winter months, increased less than seasonally in March. In most industries manufacturing nondurable goods activity was sustained at earlier high levels. In some, however, notably wool textiles and petroleum refining, ther·e were declines owing to restrictions on lJroduction for civilian use and, in the case of petroleum products, to transportation difficulties. ·Mineral production declined in March and the first half of April, reflecting sharp curtailment in output of crude petroleum. Coal production, ·which usually declines at this season, was maintained in large volume. The Great Lakes shipping season opened in tho latter part of March and the first boatloe.d of iron ore reached lower Lake ports 12 days earlier than the r·ecord set last year. Shipments during the coming season are expected to exceed considerably the total of 80 million gross. tons brought do1:vn the Lakes last year. Valu·e of construction contract awards continued to increase in March, according to figUres· o·f the F. W. Dodge Corporation, and the level of the first quarter of 1942 was the highest in recent yea~s, being some 30 per cent above that of the corresponding period last year. Awards for public work amounted to close to 80 per cent of the total and in t:O.e residential field accounted for 52 per cent of the value of all projects •. P,ublicly-financed contracts for factory construction showed a sharp increase, partly offset in t!1e total by a decline in private factory construction. -2- R-976 On April 9 the War Production Bo~d issued an order which required explicit permission of the Government for·:lnitiation of all new private construction involving expenditures in exc,ess of .specified small amounts and not covered b,y specific priority ratings. Distt;ibution Value of retai~ trade in March continued at the high level of other recent month~?, making allowance for customary seasonal changes. Sales at department and variety stores,increased b,y somewhat less than the usual seasonal amount while sales by mail-order houses rose more than seasonally. On the railroads total'loadings of revenue freight were maintained in large volwne in March and the first half of April. Shipments of coal and coke declined less than . seasonally and ore loadings increased sharply, while grain shipments declined furtn~r from the peak reached in.January. Loadings of miscellaneous merchandise, which had been unusually large ~n the preceding three months, increased less ·than seasonally. · · · · Commodity prices ·rhe general level of wholesale commodity prices advanc~d 1-1/2 per cent further from the middle ..of March to the middle of April. Among manufactured products, finished consu..1lers 1 goods, such as foods, clothing,,and shoes, continued to show the l~gest price increases. Prices of most raw materials were .unchanged or showed incre~ses, which in a number of cases reflected the raising of Federal maximum price levels.· ·rhere were declines in prices. of wheat and of a few other commodities, including gasoline at Gulf ports and .turpentine. . In retail markets .maximum prices were fixed· in this period for a number·of electrical. products, most of which.will rio longer be produced for civili.an use· after May 31~ Prices of' many other commodit:i,es and services advanced further. · Bank·credit During the four weeks ending April 15 holdings of.Government securi... ties at banks in leading. cities increased by nearly 709 million dollars, while commercial loal}s declined somewhat, following a rise in previous weeks.. Changes in member bank reserves and deposits reflected principally the temporary effects of Treasu..ry operation::; ;n connect.ion with income tax collection. ~d the sale · of certificates of indebtedness. Mone.r in circulation continued to increas.e. United.StateS. Government securiyY; prices an Follovdng S.dvance from the mid-February low·,. prices of U.. S. Government ~nds remained relative~. steady in the first half of April.
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