Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-27
PRODUCTION DROP
/ IN OCTOBER NOTED
Monthly Bulletin of Federal
| Reserve Board Reports
on Trade.

Production and employment in manu-
featuring industries declined further in
October, says the Federal Reserve
Boards monthly bulletin, while output
of minerals increased more than is
usual at this season. There was con-
siderable decrease in the demand for
Reserve bank credit after the middle
of october, rejecting a reduction IN
member bank reserve balances and, IN
November, an inflow of gold, largely
from Japan. Conditions in the money
market became somewhat easier.
Total output of manufactures ana
minerals as measured by the boards
seasonally adjusted index OF mduStrlai
production declined from 76 per cent
of the 1923-1925 average in September
n "a ner cent in October. Output OF
steel remained unchanged at % per
cent of capacity in October although
it usually shows an increase Tor tnat
month: in the first half OF November
activity at steel mills increased some
what. Automobile production declined
sharply in October production OF shoes
and woolens decreased and cotton mill
activity showed little change, although
an increase is usual at TINS season;
OUTPUT of bituminouS coal increased
seasonally, and there were large IN
creases in the output OF anthracite ana
petroleum.
Employment Declines.
Volume of factory employment de-
cl;ned substantially from the middle OF
September to the middle of OCTOBER
At wooden mills, where an increase IN
employment is usual at this season,
there was a large decrease. In the au-
tonobile and shoe industries reductlorS
IN EMPLOYMENT were considerably larger
than usual, while in the canning IN
dustrv the decline was wholly OF sea-
sonal character. In the silk goods and
hosiery industries employment IN
creased by more than the usual sea-
sonal amount.
THE November cotton crop estimate
Of the Department of Agriculture was
16.9O3 900 bales, 900 bales larger
than the october estimate and 3,0oO,oOo
bales larger than last year In spite OF
a reduction in acreage.
Data on the value OF bulldlng con-
tracts awarded in the period between
September / and November Is, as re-
norted by the F. w. Dodge Corpora
ton. showed a continuation OF the
downward movement. In this period
value of contracts was 20 per cent
smaller than in the corresponding
period of $780, rejecting smaller
volume of construction and somewhat
lower building costs.
Total volume of freight-car loadings
remained unchanged in october, while
loadings Of merchandise decreased
Department store sales increased by
somewhat more than the usual sea-
Sonal amount.
The general level of wholesale prices
declined from 69.1 per cent OF the 1870
average in September to 684 per cent
in October, according to the Bureau OF
Labor Statistics. Prices OF grams, COZ.
ton and silver, after showing a rapid
rise beginning early in October, de-
clined considerably, but in the third
week of November were still above their
October low points; prices of hides ana
netroleum were also higher in the mid
die of November than in early October
During this period the prices OF i've
stock and meats declined rapidly, re-
fleeing in part developments OF sea-
sonal character.
Bank Credit.
Reserve bank credit, which hadEin-
creased rapidly between the middle OF
September and the third week OF Octo-
Der. declined by 1855 600, 900 during the
following four weeks. This decline re-
fected a large reduction in member
bank and other balances at the Reserve
banks and also an inflow of gold, chiefly
from Japan. Demand for currency,
which had been on large scale during
September and the first three weeks OF
october, showed relatively small huctu-
ations after that time and in the sec
ond week of November declined by
somewhat more than the seasonal
amount.
Loans and investments of member
banks in leading cities continued to
decline during recent weeks, and on
November 10 the total volume was
$500 000 0o0 smaller than five weeks
earlier. This decrease reflected sub
stantial reductions in loans on securl-
ties and in other loans, as well as in
the banks holdings of investments. At
the same time deposits of these banks
also declined with a consequent reduc-
ton in the reserve balances which they
were required to hold with the Reserve
banks
Money rates in the open market.
which had advanced sharply during
october, declined somewhat early in
November Rates on prime COM
mercial paper declined from a range
of Al per cent to a range of ga per
cent and rates on bankers acceptances
from 81 to 27s per cent.