The New York herald., 1922-06-01
RESERVE BOARD Can
SEE GAINS IN TRADE.
Optimistic Outlook in All Sec
tions, Though Strikes
Are Felt.

WASHINGTON, May 31.--An improve
ment in the crop outlook in respect to-
indicated yields of leading agricultural
products and prices for them in the pri-
mary markets was the outstanding fea-
ture of May as recounted in the monthly
survey of general business conditions
conducted by the Federal Reserve
Board, which will be described In detail
in the forthcoming bulletin. Business
dependent upon agricultural prospectsl
experienced a steady Improvement dur
ing the month. AS the result OF sea-
sonal demands for farm labor. Increased
activity in the steel. building and auto
mobile industries and enlarged mining
of copper a sizable reduction OF unem-
ploynent occurred. The board FOUND
that foreign trade showed distinct
tendency to improve"
"In appraising the manufacturing situ-
ation," says the board, "a distinction
must be drawn between basic commodi-
ties and those of more highly finished
sort The marked improvement In the
surveys of previous months has contin-
ned during May, untitled orders in
creasing materially and ingot produc-
tion being the greatest in any one month
since November, 1920. The demand for
iron and steel produces continues partic-
ularly strong in the case Of automobiles
and railway supplies. Much the same
may be said with respect to copper ana
other nonferrous metals.
Textile Strike Has Effect.
due to the continuation Of the tex
tile strikes, the output of cotton goods
has been materially lessened. although
in the Southern cotton mill districts
plants are reported as operating near 70
full capacity"
The board found that the woolen and
silk industries were somewhat less ac-
tive than before, while production OF
boots and shoes is spotty. the St Louis
district reporting activity at the same
time that business slowed down IN Bos-
ton, Philadelphia and Chicago. Prices
continued to record stability. The gen.
eral index number of wholesale prices
compiled by the Reserve Board record
ed was 149 for May, compared with LAT
for April and LAG for May of last year
"The advance was due" the Board
ricultural products and in materials
used in certain basic industries"
Retail trade in May disclosed an en-
largement of buying power The re-
turns along this line, the board says,
were more favorable than those OF re-
cent months. In wholesale trade, how
ever. progress was irregular, being rapid
in the case of hardware-affected by the
building boom-and slow in other dir
tections.
| Factory demand for labor failed TO
keep pace with the growth in outdoor
occupations affected partly by strikes
| In the building trade the notable re-
vival which started with the close of
winter continued in May and brought an
unusual demand for labor.
Exchange Is Steadier.
| The month was stable In respect to
money rates. The prospect of some
better adjustments of foreign economic
conditions tended to hold rates OF ex-
change steady. Improvement in foreign
trade brought a somewhat larger in
quiry for ocean tonnage than in April.
The board notes that the estimated
production of wheat was 5S4,793,GAG
bushels. or per cent less than the 1921
crop. In District No. (chicaPo) Ill.
crop of winter wheat promises to be cor
siderably larger than last years and
enjoyed favorable weather conditions In
the early part of May. except IN riv.:r
bottom land. The Kansas City district
reported encouraging weather during the
month, indicating a continuance &C the
/ emarkable Improvement in wheat con-
dition which commenced in April. E,-
| ports from the San Francisco and st.
Louis districts were good In the main.
Cotton prices advanced rapidly in the
| South, due to the large domestic factory
| demand, continued heavy exports and
| doubt concerning the growing crop. This
price of middling upland cotton at New
| Orleans was 1919 cents a pound on Nay
| II, compared with IL cents on April II.
| Cotton stored in mills and in pubic
warehouses on April 80 amounted Z"
4.672,605 bales, about SO per cent. less
| than on April 30. 1921. Heavy rairS
and floods delayed the planting of cot
| ton.
May operations of steel mills. the
| board reports. were in excess OF 20 per
cent. of capacity and demand for nearly
| al products was accentuated by fear of
,osslhle restrictions on production be
cause of the coal strike.
"A sellers MARKET" the Board says,
| "can now be said to exist in nearly all
| products but manufacturers hesitate to
promise future deliveries and are more
concerned over increasing production
than i'm booking new business. Railroad
| and automobile manufacturers are buy
| ing actively. but structural steel orders
while still large. have decreased some-
what lately