Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-03
Federal Reserve Survey for
June Says Activity Was
Below Seasonal Level.
APARTMENT AND HOUSE
BUILDING REPORT MADE
Construction in D. C. Is About 30
Per Cent of Each Type,
Says Review.
BY EDWARD C. STONE.


ness and agricultural conditions in the
fifth Federal Reserve district. William
w Hoxton. agent Sof the Richmono
bank. says that June business olo no.
measure up TO seasonal level ana the
half year closed with trade at aoou'
the lowest point reached since the re-
cession set in last Fall A few favor
able signs appear in a survey OF tne
activities of June and early July, but
on the whole there has been a progress
sive decline from month to month this
year.
nv the Federal Reserve Bank q Rich
nond decreased nearly z per cent pc
tween the middle of June and the
middle of July, and Federal Reserve
note circulation continued 10 decilne'
the latter a seasonal development. On
july Is the Richmond Reserve Bank
was discounting only about 30 per cent
as much for member banks as on the
same date last year. Loans IN report
ing member banks declined last month,
while their investments in securities
were increased.
Debts to individual accounts figures
for the four weeks ended July 9, 1880,
show a seasonal increase over debts IN
the preceding like period this year, but
for the corresponding four weeks In
1929. and aggregate debts in the first
half of 1890 also failed to equal the
figures for the first half of last year.
Fewer Commercial Failures.
Commercial failures in the fifth dis
trict in June were less numerous than
In June, 1929 and last months liabil-
tiles were also below those of June a
l.
theless high, although better than
those for other sections of the country.
provement in June and early July, and
prvement in June and early July, and
perhaps became worse in sections of
the district Coal production in June
was in less volume than in June last
year and showed somewhat more than
a seasonal decline in comparison with
Ray.
Textile mills reported no improve
ment in the demand for cotton goods.
and restrictions in operating time spread
further during June. Most of the mills
are running about rs per cent of full
time. Cotton prices continued to de-
cline during most of the past month.
although the downward tendency was
checked in the third week of July by
unfavorable news on the new cotton
crop.
Permits issued in leading cities for
construction work, Mr.. Hoxton reports,
were fewer in number and lower in
valuation than the figures for June.
1929, which were also low. Contracts
awarded compared more favorably with
earlier periods than permits issued,
chiefly due 10 road construction. Retail
trade as reflected in department store
sales made an unfavorable comparison
with June, 1929, >trade, and wholesale
trade also reported a considerably
smaller volume of business this year.
Too Early to Judge Crops.
In agriculture, prospects vary widely
in different sections and in different
crops. but on the whole the past month
or six weeks has not been favorable,
insufficient rain having fallen to supply
needed moisture to the growing crops.
1t is, however, too early in the season
to form definite opinions on probable
crop yields.
Thirty-fiye department stores in this
district, located in 18 cities, sold an
average of SO per cent less goods in
June, 1880, than in June, 1929, very
large majority OF the stores reporting
smaller figures Total sales during the
half-year ended June 30, 1880, averaged
eight-tenths of l per cent less than
sales in the first half of 1929, decline
probably accounted for by price declines
this year. The reporting stores in Bal
timore averaged 81 per cent larger sales
during the first half of this year, but
Washington stores decreased an average
of 10 per cent and the other cities an
average of IA per cent.
Stocks on hand in the reporting
stores declined seasonally in June, de-
creasing an average of ga per cent
during the month, and on June 30 were
So per cent smaller in selling value
than at the end of June last year. Part
of this decline in comparison with 1929
figures was also probably due to price
changes during the year, Mr.. Hoxton
announces in the comprehensive sum-
mary.
BabSon Writes Investment Book.
Investment Fundamentals" is the
title of a book just brought out by
Harper g. Bros. and written by Roger
W. BabSon. The new book tells much
about the continuous working plan fol-
your money, which the writer has adj
vertised so widely from his statistical
headquarters.
The writer yurges all investors first
to get some money in the savings bank
take out a reasonable amount of life
insurance and then establish a definite
budget. He considers the budget par
Is n1OSL eSSEIblal III tSNdDilSlliIlB LIls
habit Of saving, meeting all bills ant
laying aside a certain amount eacf
month for investment.
Mr. Babson divides his investment
suggestions under three major heads
In part he favorS buying sound stock
wh9n the market appears to be nea
the bottom. In all market swings Their
are four Professionalism rislni
prices, distribution and falling prices
He says no investor can hit the yer.
top for selling and says that much sell
ing has to be done while the make
Is still advancing and most people ar
buying. The success of this plan de
ponds upon having plenty OF reaof
money when stocks are low.
His second plan is to have goo'
number of the best bonds. He believe
40 investment portfolio Is sound with
out seasoned bonds His third plan ]
The purchase of securities in growtn
industries with the idea of future rathe
than present enhancement. The frs
stock list is intended to furnish larg
profits. the bond list an assured an
safe income and the third list futur
profits. All securities should be bough
outright. so that they can, if necessar!
be carried through slump, Mr.. Babso
warns.
Lusk Reviews Local Business.
The first monthly issue Of the Wash
ington Current Business Review, pub
lished by Rufus s. Lusk, Inc, appeaTe
yesterday This statistical organizs