The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-10-29
De MANDS 0 R
BANK CREDIT
INCREASE
BY HARRY GUSACK
Financial Editor

Demand for bank credit Tor com
mercial purposes increased between
the middle OF September and thu
middle of October, rejecting
seasonal activity in trade and thu
marketing of crops, according t
the monthly analysis of business
conditions issued today by the
Federal Reserve Board.
The board said that there was q
growth of about 100000. 900 in the
total volume Of reserve bank credit
in use during the four weeks ending
October %, due chiefly to continued
increase in the demand for cur
rency. offset in part by a small
import Of gold from abroad.
Reserve bank holdings of accept.
ances increased by about $40, 600, 600
during the period. while the volume
OF discounts for member banks
declined by about 500, 000, 900.
United States security holdings re-
manned practically unchanged.
Production Increase
The board reports that employ.
ment and building contracts show
an increase, and says:
Industrial production increased
further in September, and the out
put of manufactures was in larger
volume than in any previous month.
Factory employment and payrolls
also increased. Production of iron
and steel and Of automobiles was
unusually large during September
and October, although there has re-
Gently been some curtailmerlt of
operations In these industries. There
were also increases in September IN
the activity of the textile, meat
packing and tire industries and in
the output Of coal, petroleum AMI
copper, while lumber production
showed decline
Building contracts awarded, after
declining in volume for three
months, increased considerably IN
September and exceeded all previous
records for that month. The In
crease was due chiefly to certain
large contracts for Industrial plants
and subway construction. During
the first three weeks of October
awards exceeded those for the same
period last year, the excess being
especially large in the Eastern dis
tricts.
Department of Agriculture esti-
mates of this years crop yields in
dicate that the production Of all
crops in the aggregate will exceed
last years output by about 5 per
cent. The corn crop is estimated
at 1905, 100000 bushels, or 5 per
cent above last years production.
The October s estimate indicated a
cotton crop of 1898, 900 bales, or
446, 900 bales less than was forecast
on September s, compared with a
yield Of 1886 900 in 1927.
Store Sales Gain
Department store sales increased
considerably in September and were
larger than a year ago, rejecting in
part the influence of cooler weather.
Inventories of department stores at
the end of the month were smaller
than on the same date of last year.
Wholesale distribution in all leading
lines except meats was somewhat
smaller than in September, 1927.
Fright-car loadings showed more
than a seasonal increase in Septem-
Der and continued large in October.
Shipments of miscellaneous COM
modities in recent weeks have con-
tinued in larger volume than in
previous years.
Wholesale commodity prices in
creased further in September and
the Bureaus of Labor statistics in.
dex advanced to 1901 per cent of
the 1925 average. Increases, which
were largest in farm products and
foods, occurred in nearly all groups
except hides and leather and textiles
which showed slight declines. Since
the latter part of September there
have been decreases in the prices of
livestock and meats, grains, wool
and hides, and increases in cotton,
silk, rubber and iron and steel.