Evening star., 1926-10-28
BUSINESS ACTIVITY
SHOWS SOME GAIN
Reserve Board Reports In
crease in Trade and Advance
in Wholesale Prices.

The Federal Reserve Board last
night reported for the month of Sep
tember an increase in industrial and
trade activity and an advance in the
general level of wholesale prices.
The price of cotton. 1t was said,
''has declined sharply within recent
weeks, while prices of most groups
of commodities have advanced"
Volume of bank credit was said to
have Increased seasonally, and
money rates have remained firm"
Production in basic industries
and factory employment and pay
rolls" according to the Federal Re-
serve Boards indexes, 'after chang
ing but little for about four months,
advanced in September to the high
est points since last Spring
"The increase has been particu-
Iarly large in textile mill activity.
Consumption of cotton has increased
considerably. woolen mill activity is
the largest since January, and en-
ployment has increased in nearly all
branches of the textile industry. Iron
and steel production was maintained
from early in August until the latter
part of October az level higher
than for the corresponding period of
previous years.
Automobile Output Smaller.
Automobile output was reduced in
Sep'embe'. but continued larger
thar a wear ago Mining of coal has
steadily increased since Midsummer,
and the weekly run Of crude petro-
leum from wells in October reached
the highest since June OF last year.
Building contra cts awarded during
August and September were only
slightly smaller in value than the
awards for the corresponding period
Of last year and in the first half of
October far exceeded those of a year
ago. A substantial decline in con-
tracts for residential structures has
been largely Offset by increases in
awards for industrial and engineer
ing projects. The Department of
Agricultures October IS estimate
placed cotton production at 17,454,000
bales, an increase Of about three
quarters OF a million over the esti-
mate made on the first of the month
and OF 100000 bales more than last
years crop.
Wholesale and retail trade said
The boards statement, Increased in
Septembe' and was slightly larger
than last wear Inventories of de-
part.nent stores increased slightly
more than IS usual in September. and
at the end of the month We're in
about the same volume as a year
ago. Railroad freight car loadings
reached new high weekly records in
September. and shipments were
maintained during the early weeks
Of October in much larger volume
than In previous years. A great
part of the increase, as compared
~rr{t I-c -, !
of coal and ore, but loadings of
manufactured commodities have also
been larger.
Wholesale Prices Advance.
THE general level of wholesale
prices advanced slightly in September
and October. Notwithstanding the drop
in the price of cotton to the lowest
level since 1921 The Bureau of Labor
Statistics index of wholesale prices
was about l per cent higher in Sep
tember than in August. rejecting ad-
vances both in agricultural and in
nonagr:cultural commodities. In
recent weeks prices of corn. non
ferrous metals and paper have de-
clined. While prices of live stock.
meats. poultry and dairy products
and bituminous coal have increased.
Between September % and October
20 the seasonal increase in the de-
nand for credit for agricultural and
commercial purposes was reflected in
a continued growth in the CONNER
Cial loans of member banks in leading
cities. Loans on securities and hold
tngs Of investments declined, but the
banks total loans and investments
were about 100000, 900 larger on Oc-
tober 20 than four weeks earlier.
''At the reserve banks, the volume
Of member banks borrowing, after
considerable fluctuations in response
to temporary conditions, was in
October at about the same average
level as in September. There was little
change in the banks holdings of
United States securities. while ac-
Ceptance holdings continued to in
crease, as IS usual at this season.
Except for a temporary tirming
around the 1st of October there has
been little change in the condition of
the money market Rates on com