Evening star., 1923-09-28
REVIEWED
!. BY RESERVE BOARD
Present Production Largest
in Five Years Despite Sea-
S0naI Decline.

The Federal Reserve Boards index
of production in basic Industries de-
clined per cent during August, and
The August output, however, was 81
per cent larger than a year ago and
production in every month this year
has been at a higher level than in
any month of the previous five years,
The lower production index in August
reflected reduced output. after a cor
rection for the usual seasonal trend,
of pig iron, wooden goods. -four and
cement. Cotton consumption, sugar
MEETINGS, lumber cut and bituminous
coal production increased. The num-
Der and value of new building prof.
ects, as measured by permits granted
in 16S leading cities. increased dur
ing August, but actual contract
awards were smaller THAI in July.
Drop In Employment.
Employment at industrial establish
ments throughout the United States
was slightly smaller in August, while
average weekly earnings advanced
about l per cent. Increases in wages
amounting to 10 per cent were grant
ed to anthracite coal miners, and re-
adjustment of wages and hours in the
steel industry continued, but wage
advances during August were fewer
tran in any month since last winter.
The principal changes in crop esti-
mates shown by the September
forecast of the Department of Agri-
culture were a large reduction In
the expected cotton crop, slight de-
CrGAQeS 10 inI
wheat, barley and oats and increases g
of yields of corn, tobacco and po-
tatoes.
Freight Records Highest Ever.
Railroad freight shipments were
larger in August than in any pre-
yious month on record. This was
due to seasonal increase in ship
ments of coal. miscellapeous mer-
chandise and agricultural products.
wholesale trade, according to the
index or the Federal Reserve Board,
increa @ sed IL per cent in August,
season of the year. Sales of cloth
ing, dry goods and shoes showed sub
Stanttal gains as compared with July
and We're larger than a year ago.
and sales in all reporting lines were
larger than in August, 1922 De-
partment store sales in all sections
or the country averaged II per cent
aooNc last year y leNel.
Price Levels Constant.
The general level of wholesale
prices, according to the index of the
bureau of labor statistics, remained
relatively constant in August, the
change for the month being a re-
ductiOn of less than one-fifth of |
per cent compared with declines OF
about 2 per cent in each of the three
preceding months. Prices of build
fr,y ,scl,;
fuel were materially reduced. while
prices or farm products and food
increased. Prices of certain raw ma
terials. particularly cotton and silk
advanced substantially during Sep
tember. while prices of petroleum
and copper declined.
Bank Credit on Increase.
After a decline during July and
the first part of August the volume
of bank credit in use showed a sea
sonal increase during the last week
OF August and the first two weeks of
September. Total loans and demand
deposits of member banks in princi-
pal cities increased during recent
weeks, reversing the trend of the
preceding two months. Loans chiefly
for commercial and agricultural pur-
poses increased by $122.000.O0O and
reached high point for the year
Investment holdings of these banks
OF the contrary, continued to de-
cline and on September 12 were low
er than at any time since the middle
of October of last year.
Between August 90 and September
l9 the amount of accommodation ex-
tended to member banks by federal
reserve banks in industrial districts
declined. while in agricultural dis
tricts the seasonal demand for
credit and currency resulted in a
considerable growth of reserve bank
credit in use.
More Money In Circulation.
The demand for currency arising
out of crop moving and fall trade
was reflected in an increase of s82.-
100000 In money in circulation be-
tween August l and September ]. OF
this amount about $4,000, 900 repre-
sents an increase in federal reserve
note circulation.
Money rates were firmer during
the first two weeks of September. but
eased somewhat after the 18th, part
ly because government disbursements
were temporarily in excess of tax
collections.
The Treasury issued on September
Is 200.000,000 of six-month GER
tificates bearing Az per cent inter-
est, compared with per cent borne
by six-month certificates issued in
June.