The Washington times., 1930-06-27
BUSINESS Los
APRIL GAINS
IN MAY


the same amount it increased in
April. the Federal Reserve Board
stated today in it's summary of
general business and financial
conditions in the United States.
The summary is based on stats
tics for May and June that will
appear in the boards monthly
bulletin.
Factory employment decreased
more than is usual at this sea-
son, and downward movement Of
prices continued, the board said,
and money rates eaSed further
to the lowest level in more than
five years.
Employment Drop
The boards index of industrial
production, adjusted for usual
seasonal variations, declined about
per cent in May. In 1880 in.
duStrial production has fluctuated
4 between 4 and 7 per cent above
the 1923-1925 average. and the
preliminary estimate for May IS
per cent above the average
for those years. Production at
steel and automobile plants de-
clined, cotton mills curtailed out
put, and activity at woolen and
silk mills continued at low levels.
Cement production increased
sharply, while output of petroleum
and of copper showed little
change. In the first half Of June
output at steel plants declined
further.
The decrease in factory employ
ment in May was larger than
usual, and there was also de.
cline in factory payrolls. The
number employed in the cotton
and silk goods industries de-
creased further, while in the
woolen goods industry there was
an increase from the extreme low
point of April. Employment in
the agricultural implement and
electrical machinery industries
decreased from April, but re-
manned larger relative to earlier
years. Employment in the &C.
ment industry increased, but in
the lumber industry continued at
an unusually low level.
May Building Off
Building contract awards in
May, as reported by the F. w.
Dodge Corp, continued to be in
substantially smaller volume than
in any other year since 1924.
Freight carloadings increased
by less than the usual seasonal
amount during May and continued
to be in somewhat smaller volume
than in the corresponding period
of 1928 and substantially below
the unusually active period of
1920. Department store sales in
May were approximately the same
as those Of year ago.
A further decline in the whole
sale prices of commodities oc-
Cured in May and the first half
Of June. The downward move
ment was interrupted in the last
half of May by substantial in
creases in the prices Of grains,
meats and livestock, but became
pronounced about the middle of
June, when the prices Of cotton,
silk, rubber, copper and silver
reached exceptionally low levels.
Wheat, meats, livestock and cot
ton textiles also declined in price
at that time, while prices of wool
and woolen goods, pig iron and
steel showed little change.
Reserve Loans Gain
Loans and investments of re-
porting member banks increased
further by $265. 900, 900 in the four
weeks ending June IL, to a level
considerably higher than a year
ago. The increase was entirely in
investments and in loans on
securities, of which a large part
represented loans made by New
York city banks to brokers and
dealers in securities in replace
ment of loans withdrawn by other
lenders. "All other" loans con-
tinued to decline and at $8,400,-
100000 on June IL were the
smallest since 1926
Expansion of member bank
credit during this period was re-
Elected in larger demand deposits
and an increase of $30,000,00
in member bank reserves at the
Reserve banks. The volume of
money in circulation showed a
net increase of $13,000,000. Funds
for these uses were obtained
largely from further additions of
$24,000,00 to the stock of none
tary gold and from an increase
of $22 100000 in the volume of
Reserve Bank credit outstanding.
Reserve Bank holdings of United
States securities increased by
about $4,000 900, and their hold
1ngs of acceptances declined by
about half this amount. For the
week ending June l8 the total
volume of Reserve Bank credit
declined somewhat and there was
a decline in the volume of money
in circulation.
Money rates in the open mar
ket continued to decline during
the latter half of May and the
first half of June and at the
middle of the month commercial
paper at 3l2-3A per cent and
acceptanceS at 2h per cent, were
at the lowest levels since 1924
and early 1926. Bond yields
moved slightly lower in June.