Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-28
JULY BANK CREDIT
REVEALS DECLINE
Building Contracts Making
Better Showing, Reserve
Board Review Says.

The following Is a summary Of gen.
eral business and financial conditions
throughout the IL Federal Reserve dis
tricts, based upon statistics for June
and July:
The output of manufactures continued
in large volume In June. while mineral
production declined. There was rise
in the general level of commodity prices,
rejecting chiefly an advance in agri-
cultural commodities.
Activity of manufacturing establish
ments continued at high rate in June.
Output of automobiles and Of iron and
steel showed q seasonal decline smaller
than is usual from May to June. Silk
mill activity increased and there was
a growth in the production Of cement,
leather and shoes. Production Of cop
per at smelters and refineries decreased
sharply and output of cotton and wool
textiles was also reduced, although
production in all Of these industries
years. The volume of factory employ
ment and pay rolls In June showed .
small seasonal decline from May, but,
as In earlier months. was substantially
larger than in 1928. Output of mines
was generally smaller in June than in
May. rejecting declines in the produc-
ton Of coal. copper and other non.
ferrous metals. outputs of petroleum,
however. increased to new high levels.
Reports for the first half Of July
indicate some further reduction In out
put Of cotton textiles, iron and steel,
lumber and coal.
Building Improves in July.
The volume of construction contracts
awarded decreased further in June. and
for the first half year awards were IL
A. HA irxes
in 1928. rejecting chiefly . substantial
decline in residential building. During
the first three weeks of July contracts
awarded were larger than In the same
period a year ago.
The Department of Agriculture esti-
Inmates, based on July crop condi-
ton report. indicate wheat crop OF
S34. 000. 900 bushels. about 8 per cent
smaller than production last year. but
larger than average production in the
preceding five years. The acreage OF
cotton In cultivation on July first was
estimated at 48,457, 900 acres. 3 per
cent more than a year ago.
During the month of June freight car
loadings were slightly smaller than In
May, as a result OF decreases In load
ings of most classes of freight. except
grain products and ores. In comparison
with other recent years. however. load
ings continued to show an increase.
Sales Of department stores IN June,
in the same month in 1928.
Wholesale prices. according to the
Bureau of Labor statistics index, adj
vanced from May to June on the average
by approximately as much as they had
declined during the preceding month.
Farm products. particularly grains,
cattle. beef and hides, showed marked
advances. in price. Prices Of mineral
products and their manufactures also
averaged higher in June than in May.
the rise rejecting largely increases in
the price of petroleum and gasoline.
Prices of leading imports. rubber. sugar
silk and coffee, showed decline for
the month as q whole.
During the first two weeks Of July
wheat and corn continued to move
sharply upward. while hides declined
slightly in price. Hog prices increased
and prices of rubber and tin. which
began to advance in the middle Of June,
continued to rise.
July Bank Credit Demand.
During the first half Of July the vol
ume of credit extended by member
banks in leading cities declined some
what following a rapid increase in June
On July II loans and investments of
above the level at the end Of May. The
increase reflected chiefly rapid growth
In loans to brokers and dealers in Sc
curities and also some further increase
In commercial loans. The banks hold
ings of investments continued to de-
cline and were on July II about $780,
000, 900 below the middle of last year.
The total volume Of Reserve Bank
credit outstanding showed an increase
of about $40. 1000, 900 during the four
weeks ended July II, the increase be-
ing in discounts for member banks. De-
mand for additional Reserve Bank credit
arose chiefly out of q considerable in
crease in the volume of money in cir
culation which accompanied the issu-
ance of the new small size currency.
There was also some increase In Reserve
balances of member banks accompany
ing the growth in their loans and con-
sequently IN their deposits.
Open market rates on 9O-day bankers
acceptances declined from 5k to 5h
per cent between the latter part Of June
and the middle of July. while rates on
prime commercial paper remained I'M
be