The Washington herald., 1921-08-01
FEDERAL RESERVE
REPORT REFLECTS
DULL CONDITIONS
Cement and Steel Demand
Shows Noticeable
Improvement.
RETAIL TRADE GOOD
Volume Of Business Shows
Better Than Last
Year, -. ..s
RETAIL TRADE GOOD

A review of national conditions
as seen through the several Fed
eral Reserve districts shows sea-
scnal dullness in practically all lines
Of trade has prevented general busi-
ness conditions from showing a ma
terial alteration during the month
of July. Both in volume of business,
extent of unemployment, and de-
preston Of production, the month
still reflects a condition of business
reaction in basic lines Of industry.
In this connection may be especial
the position of two of
the non-ferrous metals. copper and
zinc, which continue to suffer from
lack Of demand and extreme depres-
sion of prices. 1t should, however,
be noted that in some basic lines of
production, in which demand is sub
ject to special conditions, there has
been a noticeable improvement. This
is true of cement production and
structural steel. demand for which
a result of the growth which had
been noted in building operations.
Consumers' Demand.
On the other hand. consumers de-
mand, as reflected in the volume of
retail trade with due allowance for
price declines), continues as good as
or better than at this time last year.
The improved conditions noted dur
ing the past month or two as af-
fecting the textiles, boots, and shoes
and other lines of business produc-
ing Immediately consumable COM
modities, have been maintained. Due
to the shortage of stocks on the
shelves, midsummer retail business
has been in sorue few directions bet
ter than usual. In a number Of
lines, such as knit goods, cotton
textiles, and others. the forecasts for
a satisfactory autumn business fur
hished by trade authorities are de-
cIoedly encouraging.
Probably the most hopeful feature
in the outlook is, however, the corr
tinuing prospect of excellent food
crop returns. In cotton there has
been little or no change from the
prospect of former months. the out
look indicating. about two-thirds Of
last years production, due both to
reduced acreage and to the poor
condition Of the crop. This reduced
prospect holds true also for tobacco
and in a. lesser degree for other i'm
portant money crops. Unusually
poor returns from the deciduous
fruit crop are reported from a num-
Der Of important producing centers
in the East and Middle West.
Little Price Change.
Price changes have shown no pro-
nounced tendencies. The Federal
Reserve Boards index compiled for
international comparisons shows a
recession of three points during
June, while conflicting movements
are manifest during July. Greater
stability Is manifest in the textile
and boot and shoe industries, while
on the other hand. important de-
clines have taken place in other in.
dustries, as e. 6. in iron and steel.
Automobile prices constitute a strik-
ing example of reduction among the
highly manufactured commodities.
Practically. no change has occur
red in the employment situation and
labor authorities report that the
savings of men who have been for
some time out Of work, as well as
unemployment funds of trade
unions, are becoming seriously de-
pleted. The desire to see a resump-
tion of full production has become
very acute in not a few districts.
and apparently has led to some op-
Grafton of plants on a non-profft
making basis but with wage scales
correspondingly reduced or en-
ployes WORKING on part time.
Money Easier.
In the financial field money rates
have become distinctly easier. A
reduction in the rediscount rates at
several Federal Reserve Banks has
placed the charge for all classes of
paper at 5z per cent, while some
softening of rates to direct borrow
ers of banks has been reported from
the financial centers. Fairly salts
factory demand for commercial pa
per and for bankers acceptances
continues to make itself felt. Fluc-
trations in exchange and unstable
financial conditions in foreig coun-
tries have prevented any material
Improvement in the financing of ex-
ditions continue to show con1para-
lively little advance from that Of
recent months, although heavy sea-
sonal exports of cotton and grain
have slightly increased our trade
balance as shown by the most re-
cent figures.
The composite condition Of all
crops of the United States on July
l was s6.4 per cent of their average
condition on that date during the
past ten years. There was some de-
cline in the condition of all the lead
ing grain crops during June, and
the indicated production of wheat
on July was S09,412,o00 bushels. as
compared with an estimated pro-
duction of S2s.6a1,000 bushels 90,
June 1 and an actual production Of
7s7,12S,000 bushels in 1920. Harvest
ing Of winter wheat was completed
early in July and the harvesting of
spring wheat has commenced.
Better Yield.
District. No. 10 (Kansas City,
states that the wheat yield was bet
ter than has been anticipated, but
the prolonged period of hot weather
has left the wheat and other small
grain crops of District No. 3 (Min-
neapolis) in a spotted condition. The
acreage and condition Of corn on
July I INDICATED a yield of 3,123,-
compared with a yield of 3,232.3s7,-
GOO bushels in 1920 and an average
production Of 2,7s7,s25.000 bushels
during the, previous five years. The
heavy rains in June and warm, dry
weather In July have combined to
improve crop prospects throughout
most of the corn belt
The deciduous fruit crops showed
some further deterioration during
June and the indicated yield is very
low In all sections Of the United
ctates