Evening star., 1930-05-24
INDUSTRIAL GAINS
SCORED IN APRIL
Reserve Board Reports Bet
ter Tone in Some
Branches of Trade.

Industrial activity increased slightly
in April from the rate prevailing in
March, says the survey of the Federal
| Reserve Board. Factory employment
declined by the usual seasonal amount,
while factory pay rolls showed a smaller
reduction than usual. Wholesale prices
continued to decline in April and the
first half of May. There was further
easing of open-market money rates.
Production-Productio in basic in
dustries in April was slightly larger than
in March and the boards index, which
makes allowance for the usual seasonal
changes, shows an increase of about
per cent, offsetting a large part OF the
decrease in March.
Auto Production.
Output of automobiles showed the
usual seasonal expansion. Steel out
put declined seasonally in April and the
early part of May. The output of silk
textiles was considerably reduced and
! woolen mills curtailed operations,
though less than seasonally. Cotton
mills we're more active in April and
there was some increase in stocks. In
the first half of May, however, pro-
gram of curtailment was instituted In
the industry.
In comparison with the first four
months of 1929, a year of exception
ally active business, production was
smaller in almost all major branches
of industry, with the exception of to-
bacco In comparison with 1928, how
ever, output was larger In the auto
mobile, petroleum and silk industries.
slightly smaller in steel and coal and
considerably smaller in cotton and wool
| textiles flour, meat packing, automobile
tires and lumber.
Building contracts awarded during
April, according to the F. w. Dodge
Corporation, were 6 per cent larger than
in March, rejecting further expansion
in awards for public works and utilities,
and some increase in residential con-
struction, largely seasonal In charac-
, ter. In the first two weeks In May
! there was further increase in building
activity. In comparison with 1929.
awards in the first four months OF the
year were II per cent smaller, reflect
| ing chiefly the continued small volume
of residential building, which more than
offset increases in public works and in
utility construction.
Employment and pay rolls.-Factory
employment, which had been decreasing
since last September, declined by about
/ per cent in April, which represents the
usual development for that month.
while the reduction in factory pay rolls
from March to April was smaller than
usual.
Observation-Disclosures store sales
increased during the month by an
amount estimated to be slightly larger
than Is accounted for by. the late Easter
holiday.
Foreign Trade.
The value of foreign trade decreased
further in April, and for the first four
months of the year exports were about
20 per cent smaller than a year ago,
when trade was exceptionally active.
In part this decline reflected the lower
level of wholesale prices.
Wholesale prices. An increase IN
wholesale prices in the first week in
April was followed by substantial de-
cline, which continued into May and
brought the level of prices to the low
est point in number of years. Prices
of Important raw materials, such as
wheat, cotton and silk, declined during
most of the period, but stead1ed some
what around the middle OF May, while
prices of silver, hides and coffee were
comparatively stable. There were fairly
continuous price declines in steel, sugar.
raw wool and the textiles. Copper
prices were reduced further early in
May, but recovered somewhat following
large purchases for domestic and for
eign consumption.
Bank credit.-Loan and investments
of member banks increased by about
S16o, 900 900 in the latter half of April.
but declined by almost that amount in
the first two weeks in May, both move
ments rejecting chiefly fluctuations in
loans on securities. Investments in
creased further, while "all other" loans
continued to decline, and on May IA,
at $3.50, ,000, 900, were the smallest since
1927.
The volume of reserve bank credit
declined further by 25,000,0 900 between
the weeks ending April 19 and May II,
largely as a result of the addition Of
about $65. .000,0 900 to the stock of none
tary gold and of further substantial
reduction In the volume of money in
circulation, which reflected chiefly
smaller volume of pay rolls and de-
clines in retail prices. The systems
holdings of bills declined, while United
States securities and discounts for men,
Der banks showed little change.
Money rates on all classes Of paper
declined further in May. The discount
rate of the Federal Reserve Bank of
New York was reduced from 31a to 3
per cent on May 2 and that of the
Federal Reserve Bank of Boston from
to 3R per cent on May 8.