Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-07
LOANS SHOW JUMP
IN LEADING CITIES
Federal Reserve Board Finds
Production at High Rate
All Over Country.

The Federal Reserve Boards latest
summary Of national business condi-
tons reports that production and dis
tribution of commodities continued at
a high rate in May. Wholesale COM
modify prices declined further during
the month, but more recently showed
some advance. Total loans and invest
ments of member banks in leading
cities have increased since the latter
part of May.
Industrial production continued large
in May and was accompanied by q
further increase in the volume of fac
tory employment and pay rolls. Output
of the iron and steel industry increased
further, and shipments Of iron ere dur
ing May were the largest 1or that
month Of any recent year; production
of pig iron. steel ingots and coke was
at record levels, and semi-finished and
finished steel was. produced in large
volume. During the first half of June
steel operations remained close to ca
pacity, although some decline from the
high rate Of May was reported.
Output of automobiles, which has
been in unusually large volume since
the beginning of the year. showed a
slight reduction in May. Copper pro-
duction at mines smelterS and REIN
cries decreased during May, but con-
tinued large. Combined stocks Of re-
fined and blister copper at the end Of
May were the largest since 1927. Zinc,
lead, petroleum and bituminous coal
were produced in larger volume than In
April, while the output of anthracite
coal declined. Output in the textile in
dustries continued large in May, al
though there was q decline in activity
at silk mills. Meat production, while
larger than in April, increased less
than is usual at this season.
June Building Contracts Lower.
Value of building contracts awarded
declined in May and was below last
years level, the decrease in comparison
with 1928 being chiefly In residential
building. During the first two weeks In
June contracts averaged is per cent
less than In the same period Of 1928.
The June crop summary Of the De-
partment Of Agriculture indicated an
increase Of $4,000. 900 bushels, or more
than Z per cent, in the crop Of Winter
wheat. The condition Of Spring wheat,
barley and hay was reported to be bet
ter than a year ago.
The volume of freight shipments in
creased seasonally in May and contin-
ued substantially above the total of a
year ago. Department store sales In
creased in May and were per cent
larger than in the same month OF the
preceding year.
Price Advances In June.
Wholesale prices continued in May
the downward movement Of the previ-
Gus month, according to the index OF
the United States Bureau of Labor Sta
tistics. The decline Of the general
level was chiefly the result Of price de-
clines in agricultural products and
their manufactures, although prices OF
other products also declined slightly.
Prices of cotton and grains continued
sharply downward in May, and there
were marked declines in the prices OF
hogs, wool and lambs. Prices Of min
eral and forest products and their man.
ufactures averaged lower in May than
In April particularly those of copper
lead and tin; petroleum and gasoline
and iron and steel advanced in price
while in lumber there was a slight
decline.
Since the latter part Of May prices
of cattle and hides have advanced
sharply, and there have been increases
in the prices Of grains hogs and cotton
Bank Credit Far More Active.
Total loans and investments of men,
Der banks in leading. cities, which were
at low point for the year in the latter
part of May, increased considerably
during the subsequent three weeks and
on June 10 were about $3.50, 900 900 larger
than a year ago. The recent increase
reflected a large growth in the volume
Of loans on securities, which had de-
clined during the preceding two
months, and a further growth in loans
chiefly for commercial and agricultural
purposes. Investments declined during
most of the period, and on june l9
were at level about $450,oO0, 600 below
that Of the middle of last year.
I Volume of Reserve Bank credit out
standing, after increasing in the latter
part of May, declined in June and. fol-
lowing the Treasury financial opera
tons around the middle Of the month,
showed a small increase for the four
weeks ending June 10. Discounts
for member banks increased, while hold
ings of acceptances and United States
securities showed a decline. There were
some further additions to the coun-
trv's stock of monetary gold.
Open-market rates on collateral loans
declined in June, while rates on prime
commercial paper and 90-day bankers
acceptances remained unchanged.