Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-24
OUTPUT NOW TOPS
! LAST HALF Of 1880
Reserve Boards Review
Notes Industrial Levels
! in Second Quarter.

Industrial production showed more
than the usual seasonal decline in June
and factory employment and pay rolls
decreased. Wholesale prices, which had
continued to decline until the end OF
May, advanced in June. but for most
commodities declined again in the first
half of July, says the Federal Reserve
Boards monthly summary today.
A decrease In Industrial output from
May to June was reflected in a decline
in the boards index Of industrial pro-
duction, which is adjusted for seasonal
variations to IS per cent of the 1928
1928 output, as compared with 80 per
cent in May. Taking the second quar-
ter of the year as whole, production
has averaged about 4 per cent above its
low level in the last three months Of
1880.
The reduction of activity in June was
most marked in the iron and steel in
dustry, with steel plants operating at
3S per cent of capacity. Automobile
output declined further, and there was
some recession in production OF lumber,
meat products and flour. Petroleum
output, however, was not reduced. Ac-
tivity of textile mills and shoe facto-
ries continued in relatively large vol
ume; in the wooden industry, activity
was sustained at the unusually high
level of May, and the decline in the
consumption of cotton was not in ex-
cess of the usual seasonal amount.
other Reductions Noted.
During the first half of July there
were further reductions, partly seasonal
in nature. in output of steel, automo-
biles and lumber.
Factory employment was further re-
duced by nearly per cent, and pay
rolls declined by per cent between
the middle of May and the middle OF
June. The largest decreases were IN
the steel. machinery and womenS CLOTH
ing industries, while reductions at au-
tomobile plants and cotton mills were
partly seasonal in character, and en-
ployment at wooden and hosiery mills
increased
Building contracts awarded in June
we're somewhat larger than in May, but
declined again in the first half OF July.
Since the early Spring awards have not
increased as much as is usual for the
season. In residential building th:re
has been relatively little change ior
about a year and half, except iof
seasonal fluctuations, and the dechne
in construction has been cnieIy III
other types of building, prlnclpaIy pun
lie works and utilities.
At department stores daily average
sales were seasonally smaller IN June
than in May. Freight car loadlngs were
also reduced. rejecting principally a
further reduction in loadings OF mis-
cellaneous commodities.
Wholesale Prices Stronger.
During June wholesale prices OF
manv commodities advanced consider
ably after having reached low Levels
late in May and early in June. Prlces
of live stock and meats increased, ana
after June 81 there we're rapid advances
in prices of raw materials important IN
world markets, especially cotton, hides,
sugar. silk. copper, silver and rubber.
subsequently, however, most OF these
prices receded somewhat, although in
mid-July they were, in general. ABOVE
their lowest levels. The price OF wheat
declined during June and the first nall
of July. as the domestic price became
adjusted to world levels
At reporting member banks in lead
ing cities loans on securities continued
to decline between the middle Of June
and the middle of July. while all other
loans increased by $140000,000. This
increase was concentrated at New YORK
City banks, and was largely in the form
of acceptances purchased in the open
market. Member banks investments
continued at about the same level as In
May mad early June.
Outstanding Bank Credit.
Notwithstanding further addition of
100000 to the country's stock OF
monetary gold between the weeks ended
June 20 and July 10. there was no de-
crease in Federal Reserve Bank credit
outstanding During the period the re-
serve banks portfolio of United States
securities was increased by 75,000,000,
while their combined holdings Of ac-
ceptances and of discounts for member
banks decreased by approximately the
same amount. The gold inflow provided
member banks with funds to meet an
added demand for currency as we'll as
to increase their balances with the re-
serve banks. There was also con-
siderable growth in foreign bank de-
posts with the reserve banks.
Money rates continued at low levels.