Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-01

BY the Associated Press.
Despite the recession in recent
months, American business, in the
Judgment of the Federal Reserve
Board. closed its books yesterday aft
er a year of activity second only TO
cord-hreaking 1926.
Throughout 1927, the board said In
business review OF the year. bank
credit was abundant for all classes OF
enterprise and money rates were rel
atively low. particularly after Mid
summer and early Autumn, when dis
count rates were reduced. The supply
Of capital funds arising from national
savings was exceptionally large and
fiotauons of domestic and foreign Sc
curities were in record volume.
The board summed up the situation
in this language:
industrial and trade activity in the
United States showed a further de-
cline in me last weeks OF 1927. when
allowance Is made for the usual sea
sonal trend and at the end Of the year
production and wholesale trade were
in smaller volume than at the close Of
any year since 1874.
Near Record Of 1925.
notwithstanding the recession in
business in recent months. the volume
Of activity for the year as q whole
Was nearly as large as the record es-
Ia biished in 1926 and larger than any
previous year.
The output of mines and factories
81, l,,,. re linn at NO.
ton was somewhat smaller than the
year before though larger than in
preceding years. Factory employ
ment showed 4 slight decline for the
year and earnings of industrial work
ers were somewhat reduced. while
the value of farm products was
larger than in 1926.
"Distribution of commodities 10
consumers was maintained on nigh
level and there was no evidence OF
undue accumulation OF inventories
The general level Of commodity
prices, which had been declining for
about two years, turned upward IN
The early Summer of 1927. and at the
close Of the year was only about !
per cent lower than at the end OF
1926"
Under the heading Of industrial ac-
y,
minor fluctuations, industrial produc-
ton declined steadily after April l.
falling in July below the level Of 1926,
and after October below that OF 1925.
When allowance il made for GUS
tomary seasonal movements. the pro-
duction OF manufacturers In Noyem-
her the latest month for which COM
plete figures are available. was
smaller than In any month since No
yember. 1924.
Manufacturing Recovered.
Recovery In manufacturing activ-
fly during the early months OF the
year from the low level reached In
December. 1926, WAS general through
out most Of the industries, the re-
view added. Although increases al
that time were especially large In
iron and steel, automobiles and rub
her tires. the higher level Of produce
ton in the Spring, Az compared win
the corresponding period of 1926, re-
fiected chiefly the output In the tex
tile and leather industries.
Cotton and silk consumption was
larger than in any previous year. ana
the wool and leather industries. re-
covering somewha' from the depres'
sion Of recent years, were more ac'
tive than for any years since 1890
In October and November these IN
dtIstries showed some decline in OUT
put. along with other industries, nut
continued some what larger IMAM
year earlier
THE largest part Of the decrease
| during he last half Of the year or
| CURED in the two industries showing
| the biggest increase at the beginning
iron and steel and automobiles
The decrease VAS particularly shhrp
| In automobile manufacture. the board
| said, due In large measure ny ceshh
/ lion Of production by the Ford motor
| 90. while preparations were uhdef
way for production Of ii new model
which brought automobile production
| lower In 1921 than IN any year sihce
| 1922.
| Late Decrease. Noted.
| There we're also decreases during
| he IN ~ half ~ The year In non'tetfoia
| metals, building materials. rubber
| tires, fGpd products aud all industries
! except tekttlen, leather. petroleum re
| timing and tobacco niahufhft utefh
| we're less active toward the chd OF
| 1927 than year earlier.
| "AEricuturn! developments during
| the year were in contrast 10 the tnurhn
| u industry" the ieYie" continued
! Agricultural prospects, which al The
beginning 0f 1927 we're not as hflEht
As the industrial Dfii look Improved