The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-02-27
BUSINESS GAIN.
SEEN IN DATA !.
BY RICHARD HATTON

BY RICHARD HATTON
Many business prognosticators
hnd observers have been quoted. in
Newspapers in recent weeks regard
ing general business and financial
Iconditions. Some of these special
lists have based their conclusions
aapon facts, some upon theory. 1t
as possible today to give q SUM
mary Of the above conditions based
lIneither upon unrelated and scat
Aered facts nor upon theories. even
hof the most scientific nature, but
upon actual statistics for the
months OF January and February,
as contained in the forthcoming
issue OF the Federal Reserve Bull
letin.
Production Increase
Industrial production and ship
ments of commodities by railroads
Increased considerably in January
from the low point reached at the
end of 1877 states the Bulletin,
and. continuing in the matter Of
production. It says: The increase
of per cent in Industrial produc-
ton from December to January.
reflected larger output of manu-
features, particularly Of iron and
steel and automobiles. Daily av-
Farage production of steel ingots
increased by over 25 per cent in
January-the largest monthly In
crease since 1924. Buying of steel
products by the railroads and by
the automobile and construction
industries was also active in Janu-
airy, and Notwithstanding the large
volume of production and ship
ments, untitled orders showed an
increase during the month. Since
the first of February production
OF steel products has continued
active, with new orders and ship
nents more nearly in balance than
In previous months. Automobile
production, which in December was
in smallest volume since 1922, in
creased considerably in January
and was only slightly smaller than
In the same month of the proceed
ing year. !,
Decline in Credits
On the subject OF bank credit, the
official publication says:
For the four weeks ending Feb
ruary is, totai loans and invest
snents of member banks in leading
cities showed decline of more. than
$500, 900 900, the decline being almost
entirely in loans Oh securities. From
tbs peak at the turn of the year
this class Of loans decreased by
nearly $500 900, 900. Loans for COM
Bnercial purposes, after further
decline in January, showed a sea-
sonal increase in the first two weeks
hOf February. The decline in the
volume Of loans since the first OF
the year has been accompanied by
la corresponding decline in net de-
anand deposits, while time deposits
have continued to increase.
At the reserve banks the total
volume OF member bank borrowing
aeclined seasonaIly during the open
Ing weeks OF the year and reached
Is low point on january 25, but in
creased by about $4,000, 900 between
that date and February 81. This in-
crease in discounts accompanied
smaller reductions in the Reserve
BANKS holdings OF United States Sc
lEuritiGs and acceptances, and the
an use showed an increase for the
tour weeks.
Money Market Firm
'During the four weeks ending
February 81 q firmer tendency in
the money market was indicated by
increased rates on call and time
8loans and by a further increase
from sss per cent to Sh per cent
IN the rate on 90-day bankers &C.
Fceptances. Between January IS and
February ! discount rates at il
Federal Reserve banks were adj
;,yanced from 81 to per cent.
Industry and the investment
banking business in general are bene-
fitting from the broadening influ-
ience in stock market transactions,
according to q review just pub
1ished by Frazier Jelke and Com
ipany. This Is apparent from the
/ ness not only in New York, but
have their own exchanges"
Bank clearings last week at lead
Ing cities in the United States
were $S.9s7 .702 900, an increase of
90 per cent over those for the
corresponding week of last year.
Last weeks returns include only
five business days. owing to the
holiday.
The low point in corporate earn
1ngs probably was seen in the
last quarter Of 1927 and we may
expect marked Improvement in such
earnings by the second half of
1928, the Brookmire, Economic Ser
vice. Inc, says.