Evening star., 1924-06-02
IMPROVED OUTLOOK
FOR BUSINESS SHOWN
Federal Reserve Boards Review
for May Indicates Break in
Trade Recession.
GREATER CREDIT DEMANDS
Agricultural Products Especially
Considered in Statement.

Indications OF 4 break Ia the Duel-
ness recession that began with the
new year were shown today by the
Federal Reserve Boards review for
Sday. While the activity In some
lines can be traced to seasonal in
creases officials said the tone was
that the resulting revival would have
more than temporary life.
There were indications also that
constructive programs were under,
consideration in some business circles
which a few months ago were con-
tent TO meet only the demands upon
them and make no future plans.
Greater credit demands were evil
dent in the last thirty days. but these
were met entirely by local financial
Institutions and the lowering earn
ing assets OF the Federal Reserve
Banks were not increased. While
the renewed demands for funds
showed. in the, opinion of Treasury
officials, squirt in business. they also
indicated that commercial banks had
plenty money available for loans, with
the result that rates were easier.
Agriculture Advances.
Despite unfavorahie' weather con-
ditionS, the survey showed agricul-
tural operations were further ad
vanced than at the same date last
year and compared favorabiy with
an average for ten years. There was
an increase in crop and livestock
prices contrary 10 the downward
movement OF general commodity
prices and the purchasing power of
farm products reached the highest
point since March. 1929.
Grain, particularly winter wheat
and rye. was In better condition
than last May. Only about per cent
abandoned, the smallest with the ex-
ception of. 1917 Sincei1s13, the re-
port said. The estimated acreage e
was about 100000. On the basis of
Department of Agricuiture ealculsc
yield of winter wheat should be about
55S. 100000 bushels, 100000 bushels
below last year.
Due to seasonal factors the volume
of grain mark eted in May was small
er than in March and April and -
per cent less than year ago.
Live stock Conditions.
With the exception of several range
counties in California where the foot
and mouth disease caused heavy cat
tie losses the board regarded live
proved over the same date last year.
The kansas City and Dallas reserve
districts, territory hard hit several
times in recent years. were described
as satisfactory this year, with pros
poets bright for big calf and lamb
yield.
Production of butter and cheese
was the largest on record for April
and prices were described as salts
factory.
Prospects for a full fruit crop were
regarded as good except in some of
the northwestern states which suf-
fered under late April and early May
Revised estimates of the California
orange crop indicated that the pro-
duction would be about 24.eh0, 600
boxes, as compared with a2.So0.e0o
boxes in the last season. production
of lemons was reported to be greater
than year ago.
Florida citrus fruits were nearly all
sold by the end of May, and the estf-
mates showed a larger output than
boxes. Shipments in April and May
were 20 per cent larger than for the
corresponding period year ago.
Weather Bad on Cotton.
Weather conditions in many Sec
ttons were unsatisfactory for cotton
that some replauting had been neces-
sary. 1t called attention, however, to
increased use of fertilizer and the ad-
dition of new acreage In border states
to cotton cultivation.
The tobacco mark etinE season
closed about May ]. but activity was
noted in all manufacturing lines, al
though there were seasonal declines
in production of manufactures ex.
cepting cigarettes.
Sharp reduction continued In iron
and steel production in April and
May. the board said, but shipments
were relatively steady: and stocks
were reduced. With the volume of
in
dition was not regarded az satisfac-
tory by the authorities.
Sales of automobiles failed during
the spring to come up to expectations
was reduced. Statistics were declared
to indicate further decline was
probable
Railroad buying of rails furnished
a bright spot in dull market condi-
tions. The survey showed that un-
filled orders estimated at about $780,
600 tons were on hand and added
THAT this was enough to carry the
mills on to the end of the year
Freight cars ordered totaled 1896 for
pared with 76.5s9 for the correspond
ing period last year.
Lumber Production Heavier.
April lumber production was greater
than in March and there were indi-
cations that the output was increas-
ing. The buying of lumber was de-
scribed by the board as "by no means
active" but it added that the larger
building construction programs neces-
sarily required purchases on a large
scale.
Although anthracite markets i'm
proved somewhat in recent weeks,
the bituminous coal business appar-
emily was in the throes of an lex
treme industrial depression" and the
coke production was at low level.
Loss of production in coal and coke
attributed to no market" ranged
around 55 per cent of the capacity Of
most Of the fields.
There were stronger prices for Pc
troleum in March and April and these
were continued in May. although the
survey showed the production was
larger than last year.
The volume Of buying OF nonfer-
rous metals continued large and
shipments from ref1neries In May ex-
ceeded production OF the raw metals
for the third successive month.
Slackened activity characterized the
textile industries and was noted also
in the production OF foods.