7/17/2019 frsbog_mim_v29_0098.pdf http://slidepdf.com/reader/full/frsbogmimv290098pdf 1/4 FEDERAL RESERVE BOARD STATEMENT FOR THE PRESS X-6100 For release in Morning Papers, Saturday, July 28 1928. The following is a summary of general business and financial conditions throughout the several Federal Reserve Districts, based upon statistics for the months of June and July, as will appear in the forthcoming issue of the Federal Reserve Bulletin and the monthly reports of the Federal reserve banks. Industrial production and the distribution of commodities in June were in smaller volume than in May and the general level of wholesale prices, following a sharp advance in April and May also declined. Member bank credit was in record volume early in July and indebtedness at the reserve banks was larger than at any time in the past six years. Production—Activity of manufacturing industries declined slightly in June, and there was a decrease of about 6 per cent in the output of minerals owing to declines in the production of coal. The manufacture of iron and steel decreased in June by somewhat more than the usual seasonal amount, but there are indica- tions that there were no further declines in July and the industry was somewhat more active than a year ago. Production of flour and activity of cotton and wool mills also declined in June. Automobile production showed considerably less than the usual seasonal decline in June, and weekly employment figures for Detroit indicate that operations of automobile plants were well maintained during the first three weeks of July. The manufacture of agricultural imple- ments and machine tools continued in June at the high level reached last spring. Production of lumber, copper, and shoes, and activity of silk mills increased
frsbog_mim_v29_0098.pdf
Jan 06, 2016
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
7/17/2019 frsbog_mim_v29_0098.pdf
http://slidepdf.com/reader/full/frsbogmimv290098pdf 1/4
F E D E R A L R E S E R V E B O A R D
STATEMENT
FOR THE
PRESS
X-6100
F o r r e l e a s e i n Morning Papers,
S a t u r d a y , J u l y
2 8 1 9 2 8 .
The
f o l l o w i n g
i s a
summary
o f
genera l
b u s i n e s s
a n d
f i n a n c i a l c o n d i t i o n s
throughout
t h e
sev era l Federa l Reserve
D i s t r i c t s , based upon s t a t i s t i c s f o r
t h e
months
o f
June
a n d
J u l y ,
a s
wi l l
appear
i n t h e
fo r thcoming i s s ue
o f t h e
Federa l Rese rve Bu l l e t in
a n d t h e
monthly
r e p o r t s
o f t h e
Fe de ra l r e s e r v e banks.
I n d u s t r i a l p r o d u c t i o n a n d t h e d i s t r i b u t i o n o f commodities i n June were i n
smaller volume than i n May an d th e g e n e r a l l e v e l o f who lesa le p r i ce s , f o l lowing
a sharp advance i n A p r i l and May al so dec li ne d. Member bank c r e d i t wa s i n
record volume early i n J u l y a n d indeb tedness a t t h e reserve banks w as l a r g e r
than
a t a n y
time
i n t h e
p a s t
s i x
y e a r s .
P r o d u c t i o n — A c t i v i t y
o f
m a n u fa c t ur i n g i n d u s t r i e s d e c l i n ed s l i g h t l y
i n
June,
a n d
t h e r e
was a
d e c r e a s e
o f
abou t
6 p e r
cent
i n t h e
output
o f
minerals owing
t o
d e c l i n e s
i n t h e
p r o d u c t i o n
o f
c o a l .
The
manufac tu re
o f
i r o n
a n d
s t ee l dec reased
i n
June
b y
somewhat more than
t h e
usual seasonal amount ,
b u t
t h e r e
a r e
i n d i c a -
t io ns th a t the re were
n o
f u r t h e r d e c l i n e s
i n
J u l y
a n d t h e
i n d u s t r y
w as
somewhat
more act ive than
a
yea r
a g o .
P r o d u c t i o n
o f
f l o u r
a n d
a c t i v i t y
o f
c o t t o n
a n d
wool mi l l s a l s o dec l ine d
i n
June . Automobile pr od uc ti on showed co ns id er ab ly
le ss than t h e u s u a l s e a s o n a l d e c l i n e i n June , a n d weekly employment figures
f o r
D e t r o i t i n d i c a t e t h a t o p e r a t i o n s
o f
automobi le p lan ts were wel l main ta ined
dur ing
t h e
f i r s t t h r e e we eks
o f
J u l y .
The
manufac tu re
o f
a g r i c u l t u r a l i mp le -
ments
a n d
machine to ol s cont inue d
i n
June
a t t h e
h igh l eve l r eached l a s t sp r ing .
P r o d u c t i o n
o f
lumber, copper ,
a n d
shoes ,
a n d
a c t i v i t y
o f
s i l k m i l l s i n c r e a s e d
7/17/2019 frsbog_mim_v29_0098.pdf
http://slidepdf.com/reader/full/frsbogmimv290098pdf 2/4
vfc ....
- 2 -
X-6100
i n June.
Contrac ts awarded f o r n e w bu i ld i ng con t inued l a r ge i n June a n d
t o t a l awards
f o r t h e
f i r s t h a lf
o f t h e
year exceeded those
f o r a n y
pr ev io us cor resp ondi ng pe r i od . There were in cr ea se s over l a s t yea r
i n c o n t r a c t s f o r r e s i d e n t i a l , i n d u s t r i a l , p u b l i c , a n d e d u c a t i o n a l
build ing. Awards du ri ng
t h e
f i r s t t h r ee weeks
i n
July were
i n
some-
what smaller volume than f o r t h e c or r espond ing pe r io d o f l a s t y e a r .
The J u l y e s t i m a t e s o f t h e Department o f A g r i c u l t u r e i n d i c a t e
a
y i e l d
o f
wheat
o f
800, 000, 000 bushels,
a
d e c r e a s e
o f 8 p e r
cent
from t h e h a r v e s t e d y i e l d o f 1 9 2 7 a n d a y i e l d o f corn o f 2 ,736 ,000 ,000
b u s h e l s ,
a
r e d u c t i o n
o f 2 p e r
c e n t .
The
p r o d u c t i o n
o f
o a t s , b a r l e y ,
w h i t e p o t a t o e s , a n d tobacco i s expec ted t o b e l a r g e r t ha n l a s t y e a r .
The a c r e a g e o f c o t t o n i n c u l t i v a t i o n on J u l y 1 was e s t i m a t e d a t
4 6 ,6 9 5 ,0 0 0 a c r e s ,
a n
i n c r e a s e
o f 1 1 p e r
cen t
a s
compared wi th t h a t
o f a y e a r a g o .
T r a d e — M e r c h a n d i s e d i s t r i b u t i o n
a t
r e t a i l
a n d
wholesa l e
was
s e a s o n a l l y s m a l l e r i n June than in May. S a l e s o f depar tment s tores
d e c l i n e d b y about t h e usual seasonal amount , whi le t h e d e c l i n e s i n
s a l e s
o f
chain s to r e s were sma l l e r . Sa l es
o f
wholesa l e f i rms
i n
most
l i n e s
o f
trade showed
a
more than us ua l se as on al d e cl i ne . Compared
w i t h a y e a r a g o s a l e s o f depar tmen t s to r es a n d chain s tores were
l a r g e r a n d those o f whol esa l e f i r ms were sm al le r . S tocks o f whole-
s a l e f i rm s were i n abou t t h e same volume a t t h e e n d o f June a s a year
a g o a n d those o f depar tmen t s to r es were smal l e r .
F r e i g h t - c a r l o a d i n g s f o r p r a c t i c a l l y a l l c l a s s e s o f commodities
d e c l i n e d
i n
June
a n d
con t inued
i n
smaller volume than
a
y e a r
a g o .
During
7/17/2019 frsbog_mim_v29_0098.pdf
http://slidepdf.com/reader/full/frsbogmimv290098pdf 3/4
.. ; - 3 - X--5100'
t h e f i r s t tw o weeks o f July, however, owing t o i n c r e a s e s i n l o a d i n g s o f
g r a i n s
a n d
mis cel lan eou s commodi t ies , t o t a l loa din gs were la rg er than
i n t h e cor responding -oer iod o f 1 9 3 7 b u t co nt in ue d below t h e high level
o f 1 9 2 6 .
P r i c e s — T h e g e n e r a l l e v e l
o f
whol esa l e commodi ty p r i c e s de cl in ed
i n June a n d t h e Bureau o f Labor S t a t i s t i c s i ndex , wh ich h a d advanced
from
9 6 p e r
cen t
o f t h e 1 9 2 6
average
i n
March,
t h e l o w
p o i n t
f o r t h e
y e a r , t o 9 8 . 6 p e r c e n t i n May d e c l i n e d i n June t o 9 7 . 6 p e r c e n t . The .
d e c l i n e i n t h e a l l - c o m m o d i t i e s in d e x r e f l e c t e d d e c r e a s e s i n those
groups which
h a d
advanced most rapid ly
i n
pr ev io us months—•farm pr od uc ts ,
f o o d s , a n d h i d e s a n d l e a t h e r p r o d u c t s . P r i c e s o f l i v e s t o c k a n d meats ,
which a r e i n c l u d e d i n th es e gr ou ps , however , showed f u r t h e r advan ces
i n
J u n e ,
a n d
t h e r e
w as
a l s o
a n
i n c r e a s e
i n t h e
p r i c e s
o f
b u i l d i n g
m a t e r i a l s , w h il e p r i c e s o f s i l k a n d r a yo n, f e r t i l i z e r m a t e r i a l s , h ou se
f u r n i s h i n g s ,
a n d
au tomobi l e t i r e s dec l i ne d . Dur ing
t h e
f i r s t t h r e e
weeks i n J u l y t h e r e w e r e d e c l i n e s i n . t h e p r i c e s o f wheat a n d c o t t o n ,
a n d advances i n t h o s e o f c a t t l e a n d hogs.
9
Bank c r ed i t—Member bank c r ed i t , a f t e r r i s ing
t o a
record volume
e a r l y i n Ju ly , d ec l i ne d somewhat dur ing t h e t w o fo l lowing weeks a n d o n
J u l y
18
t 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 epor t ing banks
i n
l e a d i n g
c i t i e s were about ' $160 ,000 ,000 smal l e r t han four weeks ea r l i e r .
The
d e c r e a s e
w a s
l a r g e l y
t h e
r e s u l t
o f
r e d u c t i o n
b y
about $125,000,000
i n
t h e b a n k s ' i n v e s t m e n t h o l d i n g s , b u t r e f l e c t e d a l s o a d e c l i n e i n t h e
volume o f l o a n s on s e c u r i t i e s f o ll o wi n g a temporary increase over the
mid-year . Con t r a ry
t o t h e
u s u a l s e a s o n a l t r e n d , l o a n s l a r g e l y
f o r
commercial purposes were i n record volume during t h e p e r i o d .
7/17/2019 frsbog_mim_v29_0098.pdf
http://slidepdf.com/reader/full/frsbogmimv290098pdf 4/4
- 4 - X-6100
Member ba nk borrowing
a t t h e
reserve banks showed
a
d e c l i n e f o l l o w i n g
t h e m i d - y e a r s e t t l e m e n t p e r i o d , b u t t h e volume on J u l y 2 5 a t s l i g h t l y
more than $1 ,000,000,000, w as somewhat larger than f ive weeks ear l ier .
Holdings o f a c c e p t a n c e s and U n i t ed S t a t e s s e c u r i t i e s d e c l i n e d d a r i n g t he
p e r i o d .
I n Ju ly the re were fu r the r advances i n open market ra tes f o r commercial
paper
a n d
b i l l s ,
a n d
d i s c o u n t r a t e s
a t
seven
o f t h e
Federa l reserve banks
were ra ised f rom 4 | t o 5 p e r cen t .
Related Documents
