Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-09
BUSINESS REMAINS
At HIGH LEVELS
Reserve Board Reports on
Conditions Now Prevailing
in IL Districts.

Industrial activity continued at
high level in April, and the volume of
factory employment and pay rolls in
creased further Loans and invest
ments of member banks in leading cities
lust reported to the Federal Reserve
Board here continued to show further
decline between the middle of April and
the middle of May, and were at that
time at approximately the same level
as a year ago.
Industrial activity increased in April
to the highest level on record. The iron
and steel and automobile industries con-
tinued exceptionally active during April.
Activity in copper refining, lumber,
cement, silk and wool textiles, and the
meat packing industry increased, and
production of cotton textiles showed a
less than seasonal reduction. Employ
ment and pay rolls increased, contrary
to the seasonal trend.
Output of mines was also larger in
April. Copper, tin and anthracite coal
production increased, and the seasonal
decline in output of bituminous coal
was smaller than usual. Petroleum
production declined slightly.
Preliminary reports for the first half
of May indicate a continued high rate
of operations in the iron and steel in
dustry. Output of lumber and bitumious
coal was somewhat larger during the
first part of May than at the end of
April.
May Building Contracts Lower.
Building contracts awarded during
the month Of April increased sharply.
and for the first time in five months
Appropriated the total for the CORE
spending month in the preceding year.
The increase was not continued, how
ever, in the first part of May, when
awards averaged 20 per cent below the
same period in May, 1923. During
April most classes Of building showed
seasonal increases over March, the
largest being In contracts for residential
building and public works and utilities.
Shipments of commodities by rail in
creased during April. and were the
largest for this month in any recent
year. The increase from March re-
Elected larger loadings of miscellaneous
freight, lumber. live stock and ore.
During the first half OF May shipments
OF freight continued to increase.
Sales at wholesale declined seasonally
In April, except in the case of grocerv
and hardware firms. In comparison
with April, 1923. all lines of trade re-
porting to the Federal Reserve system
showed increases. Department store
sales were also smaller in April than
IN March, but continued above the level
OF year ago.
Prices in Slight Decline.
Wholesale commodity prices averaged
slightly lower in April than in March.
according to the index of the United
States Bureau of Labor Statistics, re-
fiecttng primarily declines in prices of
farm products and their manufactures.
Prices Of mineral and forest products
and their manufactures, on the average,
showed little change. There were in
creases in the prices of iron and steel.
and sharp declines in copper, lead and
tin. Seasonal declines occurred in prices
OF coal and coke, while gasoline prices
advanced
Prices Of farm products and their
manufactures averaged lower in April
than in March. Prices of grain, es-
pecially wheat, moved downward more
sharply, and wool and cotton continued
to decline. Live stock and meat prices
continued the upward movement Of the
previous month, but at slower rate.
Hides averaged slightly higher in price,
and leather somewhat lower. Among
imported raw materials, rubber, sugar
and coffee showed marked price recess
sionS. Early in May cattle hides ana
wheat prices declined sharply, and the
price of rubber increased.
Heavy Decrease in Loans.
During the four weeks ending May
Is loans and investments OF member
banks in leading cities showed a de-
crease of nearly 5000 1000, 900, largely in
loans on securities together with some
further decline in investments. All
other loans, chiefly tor commercial and
agricultural purposes. remained I'M
changed at a relatively high leVs-
There was further reduction in the
average volume Of Reserve bank credit
between the weeks ending
April "a and May o. owing largely to
additions to the country's monetary
stock of gold The decline was in dis
counts for member banks; holdings OF
and of United States secu-
rites showed practically no change.
Open market rates for commercial pa
per remained unchanged, ss did rates
IN prime bankers acceptances, except
for a temporary decline at the end OF
April and the first week in May. In the
irst three weeks Of May rates on col
ateral loans averaged considerably
higher than in April.