Evening star., 1931-06-26
MAY INDUSTRIAL
OUTPUT UNCHANGED
Reserve Boards Report De.
CIareS Most Moves Are
Merely Seasonal.

Volume of industrial production
showed little change between April and
May, following upon increases for four
consecutive months, while factory en-
ployment declined by the usual sea-
sonal amount. The general level Of
wholesale prices continued to decline,
says the Federal Reserve Boards
monthly review.
Volume of industrial production, as
measured by the boards seasonally ad-
justed index, was about the same in
May as in April, per cent larger
than in December and IA per cent
smaller than in May, 1880. Steel out
put continued to decline more rapidly
than is usual at this season, and con-
sumption of cotton by domestic mills
was also curtailed, while wool conSump-
ton continued to increase, contrary to
the usual seasonal tendency, and shoe
production, which ordinarily declines in
May, showed little change; daily aver
age output of automobiles, according
to preliminary reports, was about the
same as in April. During the first three
weeks of June activity at steel mills
declined further.
In the first five months of the year,
taken as whole, output of textile mills
and shoe factories has been in about
the same volume as in the correspond
ing period of last year, while output OF
steel, automobiles and lumber has been
about one-third smaller.
Changes in Employment.
Changes in employment from the
middle of April to the middle of May
were of the usual seasonal character
in many manufacturing industries. In
the iron and steel industry, however,
at car-building shops and at eStab-
lishmentS producing machinery en-
ployment declined considerably while
it increased in the automobile and tire
industries. At textile mills employment
increased somewhat, contrary to sea-
sonal tendency while in the clothing
industry the number employed de-
creased.
Value of building contracts awarded
in May was somewhat smaller than in
April, rejecting chiefly a decline in
awards for public works and utilities.
In the first half of June daily average
value of contracts awarded increased
somewhat, rejecting larger awards for
public works and utilities, offset in part
by decreases in awards for other types
of construction.
Sales by department stores decreased
in May, contrary to the usual seasonal
tendency, and the boards index declined
to the level prevailing before the sharp
increase in April. Total freight-car
loadings increased somewhat less than
usual.
Wholesale Prices Lower.
The general level of wholesale prices
declined 2.7 per cent further in May,
according to the Bureau of Labor Sta
tistics, rejecting large decreases in
prices of agricultural products, textiles,
non-ferrous metals and building mate
rials In the first hals of June prices
of live stock, which had declined rapidly
in April and May, advanced, while prices
of petroleum continued to decline.
Loans and investments of reporting
member banks in leading cities declined
further by about $2S5, 900, 900 in the four
weeks ending June IT, rejecting reduc-
tionS in loans on securities. "All other"
loans, largely commercial, have shown
little change since the early part of
May. The banks investments. which
readched new high level late in April,
were reduced somewhat during May and
have f1uctuated within a range of
$1,000 100000, to $7,850, 100000 since
that time.
Interest Further Reduced.
During the four weeks ending June
II there we're imports of gold from
Argentina and Canada, and in addition
a large amount of gold previously ear
marked for foreign account was re-
leased in the United States. The total
increase in the stock of monetary gold
was $120,000,000 for the period, of
which $90,o00000 was added during the
last week. Payments of currency into
circulation, accompanying bank sus-
pensions in the Chicago district, abb
sorbed a large part of the funds arising
out of the additions to the gold stock,
with the consequence that there was
little change in the volume of reserve
bank credit.
Money rates in the open market con-
ttnued at a low level during May and
the first three weeks of June There
was a further decline in prevailing
rates on commercial paper from range
of 2-2A to level of 2 per cent, while
rates on bankers acceptances were un-
changed at seven-eighths of per cent.
Rates paid on deposits by banks were
further reduced, and clearing house
banks in a number of financial CEN
ters established a rate of one-half of
] per cent on bankers balances