Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-07
SEASONAL ADVANCE
IN TRADE IS SLOW
Commerce Department Finds
Business Is Extremely Dull
Throughout Nation.

The Commerce Department, in its
business situation summary, laid It's
economic cards on the table with a fiat
statement that business continues ex-
trernely dull, and the seasonal increase
which usually occurs at this time Of the
year has been slow in developing.
The summary, based on weekly data
through September &c, and monthly
data through August, said the most en-
couraging feature of the month was the
continued stability of wholesale prices,
the induces of which have remained SUB
stantially unchanged since June.
Reserve bank credit outstanding in
creased sharply during August, the sum-
mary pointed out, primarily as result
of continued currency Withdrawals and
the transfer of an additional volume Of
foreign bank funds from the money
markets to deposits in the reserve banks:
Changes in money rates were reported
as negligible. and the market was char
acterizeo by continued ease.
Weakness in Market
Further summing up the financial
situation the summary said:
stock prices in August fiuctuated
within narrow range, but IN Septem-
Der acute weakness carried the mdrKe'
below the June lows. Bond prices nave
also been reactionary. Gold holdln2s
advanced in August, but more recently
important amounts have been placeo
under earmarks for foreign account rs
the result of the unscttlement abroad.
New capital issues were relatlVeIy
small. Commercial failures in August
decreased. both in number and llan1l-
tiles involved. but bank suspensions
we're more numerous and the deposits
affected we're the largest since last de-
cember"
THE summary said industrial produc-
ton in August receded slightly from me
JULY level, and the adjusted index 1eil
below that Of last Decembe-. Declines
of about equal proportions IN manuiac,
turing and mineral prodIictlon causeu
the general index to drop 3.6 per cent
below July and Il per cent oelo" Au-
gust, 1880.
Recession during the month was pro
nounced in the iron, steel, autonoOile
and petroleum industries. ACTIVITY IN
major lines of consumers goods con-
tinued on a relatively favorable plane.
resulting in pay roll gains in textile,
food products and leather industries.
The adjusted employment mack was
slightly below July. while the unad-
iusted index of pay rolls was unchanged:
Continued weakness in the general
banking situation" the fnanclaI report
of the survey said, continues to be re-
fected in the unusually low level OF
new CAPITAL issues August issues were
considerably below those Of February,
the record low month of the first hall
of the wear Issues Of long-term real
estate bonds. though still on low
monthly level. showed a marked in
crease during August over those IN the
preceding month. Total dividend and
interest payments fell below those OF
any preceding month OF 1881. but were
only per cent less than in August,
1929"
Money Rates.
The survey said that average money
rates showed no change during August.
Despite a net import of gold during
August. the reserve ratio showed the
sharpest drop for any month this year
The decline was due TO sharp IN
crease in the reserve bank liabilities,
especially in the note circulation.
In commodity prices the survey said
that in August the wholesale markets
advances of per cent in prices of fuel
and lighting materials and slightly
higher prices of food were reflected in
the combined index. which registered
an advance of o. per cent. the first rise
since September. 1880
Department store sales during August
were IL per cent less than in August,
1890. while the total volume of con-
struction contracts awarded continued
to decline during that month, although
building construction in several sec
lions of the country registered slight
increase.
On the Persian Holy day of Mohar-
ram. no one must use perfume. wear