Evening star., 1915-06-04
Volume of Business in This Re-
serve District Reported
Less, However.
CONDITIONS ARE BETTER
THAN THREE MONTHS AGO
Domestic Manufacture Output Slack,
But War Supplies Orders
Swell the Total.

With economy the watchword among
the dwe1lers III the federal reserve dis
trict with Richmond as headquarters
which includes the District of Column
bia-a materially diminished volume of
business in most lines is reported in
the monthly bulletin of the federal re
serve board. just issued. From almost
every direction. however. the bulletin
states, conditions show material i'm
provement over those of three months
ago.
The bulletin of district No. 5. Rich
mond, is as follows.
There has been very little change in
general business conditions in the fifth
reserve district during May. Agricul-
turally, the month was one of prepara-
ton. Hope for the future has been in
creased in the presence of timely rains
and the knowledge that the close of
the planting season shows that there
is material diversifcation. especially in
sections heretofore almost entirely
given over to cotton. The recent soft
ening in the price of this staple has
somewhat checked liquidation, which,
however. had proceeded far enough to
be of great help not only to the debtors
themselves but to their creditor job
be the watchw ord. and its practice,
while ultimately most beneficial to con-
sumers. has not contributed to the
profits of those ministerng to their
wants.
Decrease in Volume of Business.
"In consequence, most lines. including
retailers. report, in comparison with
last year this time, materially dimin-
ished volume of business, although
from almost every direction conditions
show material Improvement over those
of three months ago.
The demand for bank credit is very
quiet and modest in amount, with the
result that local institutions are ap-
parently comfortably able to care for
it without recourse to borrowing. Bank
loans as whole reflect more a desire
to shift transactions already open than
a demand for fresh credit.
''Manufacturersand exporters of goods
for war purposes are, of course, an ex-
ception to the general rule Diplomatic
developments, apparently, have had no
effect either upon credit conditions or
the demand for funds, for which fact
it ia possible the presence of the fed
eral reserve act may in large measure
be responsible.
Optimism in Business.
From Boston, headquarters of dis
trict No. l, comes word of a hardening
tendency in the money market, due
largely to hesitation of banks to in
vest too closely. A general feeling of
optimism is reported In all lines of
business, and slight Improvement in
all lines. Trades directly Influenced
are doing a good business on account
Of foreign government orders coming
in daily. There is no improvement In
the shoe and leather trade. War orders
are still the principal factor. Wool and
woolen Industries are picking up, as is
the cotton mill situation.
New York. headquarters of district
No. 2, reports the farmers anticipating
producing goods for domestic use
manufacture of war supplies, how
ever. continues above capacity. partly
offsetting slack domestic trade. The
number of unemployed is reported sub
stantially reduced. Failures, since the
nrst of the year. have increased so per
cent in number and SO per cent in
amount. The stock market is not so
active.
War orders and their influence are re-
district No. 3. with Philadelphia as
headquarters General trade is dull
and much under normal. Business is
reported as hesitating and concerned
over lne OUTDOOR 1nEre is some bet
terment in the retail trade.
Improvement of conditions as report
ed in April in district No 4, from
Cleveland. are being held, but without
advance. The lake season opened late
and the supply of grain is not sufficient
to keep all vessels busy. and many will
have to dock. Settlement of the coal
strike has returned $4,000 miners to
work, but prices in the coal trade are
still unsatisfactory There is marked
decrease in idle cars and an increase In
railway traffic east OF Chicago The
business situation In the southern part
of the district in western Kentucky is
not participating IN the general I'M
provement, except in certain lines for
war orders
Conditions In the sixth district are
reported from Atlanta as generally
good. Jobbers and wholesalers are
looking forward to heavy buying or
ders in summer and fall. Cotton mills
are running full force and many over
time. Agricultural conditions appear
exceedingly bright, with decreased
cotton acreage.
Favorable Trade Development.
Prom Chicago. reporting conditions in
the seventh district, comes assurance
of a favorable trade development ir
May. Moderate Improvement is noted
in the leading Industries. with better
prices. Labor troubles are depressing