Southwest Washington labor press. [volume] (Hoquiam, Wash.) 19??-19??, 1924-08-29
BUSINESS INCREASE
PREDICTED FOR FALL


moderate increase in business activ-
ity was recorded in the Twelfth dis
trict during July, following four
months Of decline. Wider distribution
Of goods at wholesale and retail has
been accompanied by rising commod-
ity prices, and more recently product
i've industry has increased in re-
Spouse to strengthening demand and
low advances. Bank credit has con-
tinued plentiful, and interest rates
relatively low.
Rejecting recent trends of bust
ness in the district, this banks in
dex of bank debts Corrected for sea-
sonal variation, year to year growth,
and price changes) advanced 6.5 per
cent during July, and was again
slightly above normal (100) in that
month. During June the index had
fallen below normal for the first time
since November, 1922. The value of
trade at retail during July, as re-
ported by representative department
stores in the larger cities, was the
same as during July a year ago, and,
If allowance be made for seasonal
factors, was larger than in the pre-
vious two months of the present year.
This improvement was quickly re-
hected in increased purchases from
wholesalers, indicating light stocks of
goods on retailers shelves. In gen.
eral, however, trade at wholesale
may still be termed inactive, although
not displaying the abnormal dullness
noted during May and June.
Accompanying the increasing will
ingness of consumers and retailers to
buy in more normal amounts, COM
modify prices at wholesale have NOV
ed upward, reversing a downward
trend which has continued since last
February. Private weekly indexes of
wholesale prices advanced steadily
during July, preceding the upward
movement of the United States bu-
reau of labor's monthly index of the
general wholesale price level (404
commodities), which stood at lat for
July compared with 145 for June,
l1913 prices-10O). OF particular
Importance to this district were in
creases in prices of grains, wool,
non-ferrous metals and lumber.
The Improvement in business condi-
tons was not generally reflected in
July figures of industrial production,
but evidence, mostly non-statistical,
down to August Goth, indicates that
production schedules were increased
during the latter part of July and
the early part of August. A signifi-
value of building permits issued in
cant increase in the number and
20 principal cities was reported dur
ing July as compared with June, and
while the July figures were still be-
low the high levels of a year ago, the
percentages of decline were smaller
than in any month since April. In
the lumber industry shipments in
creased in comparison with produc-
ton, while new orders increased in
comparison with both shipments and
production. Stocks of lumber held
by mills accordingly declined and their
untitled orders increased. Relative
stability in production of important
minerals, petroleum, and -four was
reported.
Deposits continued to increase in
the banks of the district during July
and, in the absence of increased COM
mercial borrowing, were largely d.
verted into investment channels.
During the five weeks ending August
18th, demand deposits at reporting
member banks in principal cities in
creased by $S4, 100000 or Al per cent,
commercial loans declined by $6,OOO,-
600 or or per cent, and investments
increased by 100000 or 2.5 per
cent. Total earnings assets of the
Reserve bank increased during this
period, but solely as the result of
further purchases of United States
government securities. Total dis
counts Of the Reserve bank, at $751;
10000 on August ID, 1924, were at
the lowest point since April, 1917.
On August 81, 1924, the Federal Re-
serve Bank of San Francisco lowered
its rediscount rate on all classes of
paper from to 3h per cent. The
per cent rate had been in effect
since June 10, 1924, it having super
seeded the AZ per cent rate announced
March 81, 1928.