Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-01
B BUSINESS and
TRADE HOLDING OWN
IN new ENGLAND

Boston, April 30-The combination
of poor weather and lessened conf
dence in the immediate outlook has
prolonged somewhat unsettled busi-
ness conditions in New England, al
though in several important indus
tries trade is satisfactory. the Fed
eral Reserve Bank of Boston said in
its monthly business review made
public tonight. While noting an ap-
parent hesitation" in business ac-
tivity the review emphasizes the
facts that bank deposits showed an
improvement in April of very nearly
the usual proportion and building
activity showed the usual amount Of
seasonal expansion.
Some Improvement was reported
in April by certain industries which
had previously complained of poor
business" the review said. an New
England as whole, however. condi-
lions in April approximately held
their own when compared with those
OF March. The volume of business
OF many of the more important in
dustries as well as retail trade. nor
mally expands every spring. This
year, too. business increased during
March and April as compared with
January and February, but when a
comparison of relatively small in
crease this spring is made with that
which ordinarily occurs, the present
hesitation in business activity is
more apparent.
Bank deposits are one Of the i'm
portant factors which showed an i'm
provement in April of very nearly
the usual proportion. The fact that
commercial deposits of member
banks in New England have in
creased during recent weeks, while
the so-called 'commerciar loans
nave declined, furnished an excellent
index of the character of the present
situation. Commercial loans would
undoubtedly not be liquidated COIN
cidently with an increase of COM
mercial deposits, if inventories were
unwieldy or there was much of an
element OF real strain in the business
situation. When fundamental eco
nomic factors are working into a
dangerous position. commercial loans
or banks to their customers tend to
increase rather than decrease, as
they are doing at present.
THE building industry is another
important factor in the New England
situation which showed the usual
amount of season expansion In OPP
erat;ons between February and
March. New construction, especial
ly residential. continues in large VOL
ume in this district.
Much of the recent contraction
mas been in the value of new BUSH
ness and production, rather than in
shipments of merchandise. Carload
lngs of merchandise and miscellan-
eous freight in New England have
not only increased steadily since the
first of the year, but also have been
larger than. during the corresponding
period of 1923.
one of the causes of the recent
changes in the attitude of business
men has been the decline in COM
modify prices. When buyers for any
reason hesitate to order merchandise.
there is tendency for commodity
prices to decline and this very de-
cine regenerateS further hesitation.
Some such procesS as this has been
going on during recent weeks. How
ever fewer wholesale commodities
declined in price during the first
three weeks of April than during the
preceding three weeks, while a large
number increased during the first
three weeks of April than in the pre-
vlous three weeks. To be sure. there
remained not excess of wholesale
price declines over advances in April
but apparently the reaction was los
ing in force rather than gaining,
The financial situation, as for
months past, continues strong, and
Is one OF the most important factors
tending to stabilize the business stu
alton"