Evening star., 1925-09-12
BUSINESS SURVEY
SHOWS UPTREND
Federal Reserve Board Sees
Definite Improvement in
National Conditions.

con firming indications Of definite
improvement in the Nations business
position. the Federal Reserve Board
last night made public a survey which
economists described as the most op-
timstic of the kind il has issued in
several years.
There could no longer be any doubt
as To the general improvement
throughout the commercial world.
Government economists asserted, and
insisted that the progress in the
United States had been greater than
in any other major country.
General Outline of Business.
The boards review, while confined
TO the United States. went at length
into all phases of the improvement,
declaring.
The course of business in recent
months has been characterized by a
rise In prices an upturn in industrial
production after several months of
Decline a continued growth in build
ing construction and an increase in
the volume of commodity distribution.
This increase in business activity
has reflected a sustained demand by
domestic consumers, both rural and
urban. and by foreign purchasers Of
American products, particularly grains
and cotton. With commodity distri-
button in relatively large volume
stocks Of commodities have continued
TO he at a comparatively constant
level
Commercial demand for bank credit
has recently increased. but the vol
ume of loans for industrial and com
mercial purposes is still below that of
the opening of the year. A large
growth in the volume of loans on
securities, however, has carried the
total of loans and investments to a
higher level than at any previous
time. Conditions in the money market
in recent months have been irmer
than earlier in the year, and money
rates have remained considerably
above the exceptionally low level OF
last year"
Wholesale Prices Higher.
The board went on 10 say that in
July alone wholesale prices were about
per cent higher on the average than
last Summer and called attention TO
the steady advance beginning in June
and continuing in August. While the
wholesale price level now is just about
the same as the peak of 1928, 1t never
theless was regarded as showing i'm
proved conditions. since there had
been readiustment between prices of
different groups of commodities.
1t was cited, for example, that prices
of non-agricultural commodities. which
in 1928 were considerably above the
general average, had declined. while
the price range of agricultural prod
ucts had increased by approximately
l6 per cent since the 1923 peak.
ut appears. therefore. the review
continued. that the recent price ad.
vance, as well as the relatively high
level. reflects chiefly an increase in the
price of foodstuffs and other agricul.
tural commodities rather than gen.
eral rise in the prices Of all groups
of commodities. Both the general
course of prices and the rise in the
price of foodstuffs in the United States
has been paralleled by similar move,
ments in the principal European coun-
tries
Brings Increased Production.
The upturn in prices. the board OBJ.
served, naturally brought on an in.
crease in production in practically all
industrial establishments. Attention
was called, however. that no over.
stocking of mercha ndise had been re.
ported. indicating a consistent de.
mand by the buying public. Public