The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-04-13
FEDERAL BANKS
SHOW TRADE
GROWING
General Production 81 Per
Cent Higher Than July, 1921.
Credit Needs Increase.
By w. sICOUsINs.


maintenance Of high rate Of in
dustrial production, increases in
freight traffic and employment and
a large volume Of retail and whole
sale trade, indicate the continued
expansion of domestic trade and in
dustry in this country.
The reports of the Federal Re-
serve banks in the various districts,
supplemented by those of the COM
mercial banks, portray an unbroken
record Of progress and prosperity
that has not been surpassed in any
period since the close of the war.
The Federal Reserve boards in
dex of production in basic indus
tries for February was at the same
high level as in January. The in
dex number for these industries is
now approximately equal to the
highest point reached in the past,
Since the low point in July, 1921,
there has been an increase of 81
per cent. The volume Of new build
ing projected in February was ex-
ceptionally large for the season,
particularly In Western districts. A
continued increase in industrial en-
ployment has been accompanied by
further advances in wage rates in
a number of industries.
Money Goes Higher.
The Federal Reserve Bank of
New York reports that money rates
were firmer in March, rejecting the
increasing credit requirements of
trade and industry. A larger de.
nand upon the banks from their
own customers tended to curtail the
volume Of their funds available for
outside investment, and open mar
ket rates for commercial paper, Gov
eminent short term issues. and
stock market time money reached
the highest points in approximately
a year.
General business In the Philadel-
phia reserve district contlnues to ex-
pand, according to the monthly bull
letin of the reserve bank there,
though all industries have not
shared In the Improvement to the
same extent.
THE demand for some conrnodi-
ties has grown steadily, but in the
case of others there is strong evi.
dence that the ever.mounting price
level is acting as a check; in fact,
the volume Of orders booked by sew.
eral industries has declined since
last month. But even in these, sales
are still large, and business as a
whole continues 70 be exceptionally
good.
las a result Of the large number
Of orders already on the books and
still being received, production is
proceeding at high rate. The vol
ume Of production today is larger
than at any time since May, 1917.
But operations would be even great
err were it not for the shortage of
labor and the difficulties resulting
from the transportation situation.
Although several Of the freight en-
bargoes have been lifted, general
transportation has improved but lit
tie since last month. The labor
problem is one Of the biggest with
which manufacturers must contend
at this time"
Coming to the Middle West, we
find from the monthly bulletin of
the Federal Reserve Bank of Chi
cago, evidence of the favorable
credit conditions existing at present.
In the agricultural sections"
says the Chicago Reserve Bank,
1.-The March LIST settlement period
was met with little strain on the
banks, rejecting the better financial
situation Of both banks and farm
ers compared with the years i'm
mediately preceding. In industrial
centers, the increased demand for
bank accommodation resulted from
the active operations Of manufactur-
ing plants and from delay in ship
ping their finished products-a de-
lay caused not only by car short
age but by the present large volume
Of shipments.
Steel Demand Heavy
Contributing to this freight con-
gestion is the heavy demand for
steel and iron, and for raw ma
terials, both for manufacturing and
for construction work. Distribution
OF lighter merchandise also Is es.
pectally active for this time of year
in most lines. ACCOMMODATING the
expansion in production and dis.
tribution, is the general rise in COM
modify prices, an important factor
in determining conditions.
Loans and discounts at member
banks outside Chicago and Detroit
continued to increase during Feb
ruary and the first part of March,
as evidenced by reports from forty
five member banks in selected cities
or the district. Demand deposits
showed a. temporary decline in the
~~~~~ ">SAA Va II WI DuL were
considerably higher than the Jan
uary level through February and
the first part of March,"
Identical statements came from
the great agricultural sections of
Kansas and Missouri.
Summarizing from a number of
bank reports we find that bank
clearings at the principal cities dur.
ing February amounted to over $40.
OOO,OOO,OOO, compared to $4,000, 0CO,-
600 in the same month last wear:
merchandise exports were 100000.
900 against 1881 900, 900 in February
OF last year; commodity prices
$472.81 against $425. 80 last wear: rail.
road earnings, $512, O0O, 900 against
$425 100000 last year; automobile
production $241 900 against $226. 600
year ago; pig iron production
1884 tons against 1880 tons last
year; petroleum production, 81 .OOO.-
600 barrels, compared to $4,000, 900
a year ago; cotton CONSUMPTION.
$4,000 bales, against 463. 900 last
year; wool consumption, So, 900 600
pounds, against $4,000, 900 last wear.