Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-07
EXPANSION NOTED
IN FOURTH DISTRICT
Cleveland Bank Reports
Manufacturing Gains Ahead
of Other Sections.
Special Dispatch the The star.

CLEVELAND, April IA further ex-
pansion in fourth district business was
evident during the past month, although
the improvement was chiefly of a sea-
Ronal nature and operations are still
much below normal Manufacturing
activity in February and early March in
this district appears to have been bene-
fitted to greater extent than in the
entire country, chiefly because of the
large amount of iron and steel produced
locally and because of the importance
to many concerns of increased activity
in the automobile industry.
After allowing for seasonal variations,
automobile production increased over
per cent in February, and based on
weekly production reports. further i'm
provement was attained in March. This
was reflected in operations at auto parts
factories in the central and northern
parts of the fourth district. 1t also had
q very favorable effect on the steel in
dustry of this section and the slight
lag in operations apparent last month
disappeared Production at Cleveland
mills was at 10 per cent of capacity in
the third week of March, having adj
Vanced from SO per cent in February.
principally because of increased demand
for sheets and bars from automotive
concerns and for general wire products.
Activity at clcthing and textile fac
tories. stimulated somewhat by an early
Easter, increased by more than the
usual seasonal amount and employ
ment at these concerns advanced 5
points, in comparison with a flve-year
average increase of 2 per cent. Shoe
production also expanded more than
Seasonally, a 16 per cent increase in
output being shown in February. OPP
eraticns at china and pottery centers
improved more than the usual amount.
Retail trade also was larger in Febru
airy after allowing for the difference in
the number of business days.
The improvement shown, however,
was by no means general, weakness stin
being observed in several lines. Opera
lions at Ohio glass factories increased
in February. but at those in Western
Pennsylvania were smaller than in jan
uary Coal production declined bath
from January and last year and build
ing activity remains at very low levels.
The rubber and tire industry continues
TO show Irregularities little change being
evident in production after allowing for
seasonal variations. The agricultural
situation is quite unfavorable, though
recent rains have largely corrected the
drought deficiencies which have existed
for many months.
A further easing of the credit situa-
ton in the fourth district and the en-
tire country was evident during the
north ended March Is. Money rates
declined slightly end remained at low
levels during the period of Treasury
financing and income tax payments.
Total credit extended by the Federal
Reserve Bank of Cleveland on March 10
was slightly lower than on the same
date of the previous north, but at
1880 900 was above the level Of the
corresponding week of 1880, being buoy
ed up by holdings Of Government bonds.
period of heavy purchases of Govern
ment securities, policy adopted as a
system matter, total credit extended by
this bank is lower now than at any time
since 1924. despite the fact that hold
ings Of Government securities continue
at high levels.
Bills discounted for member banks,
representing this banks direct accom-
modation to banks in the fourth dis
trict. receGed to S14.185. 900 on March
l8 mostly for country banks compared
with s22,815,000 one month earlier and
SIS. 263, 600 on March 10, 1890. With
the exception of three weeks last Fall,
direct loans to members are lower than |
at any time since 1917.
Contrary to the trend of other recent |
years, holdings of bankers acceptances |
increased in the past four weeks and |
on March 18 totaled S14,970,000, against |
1885 900 in February. At this level, |
however. they compared with 1922 |
600 in the same week of 1880 and were !
smaller than at any similar time since |
1922, notwithstanding the fact that the |
total volume of acceptanceS outstand-
ing is only about 10 per cent below the !
record total of one year ago.
Despite the general reduction in the |
volume of retail and wholesale trade, in |
pay rolls and prices, the volume of |
Fourth District Federal Reserve notes F,
in circulation has been larger since the |
first of the year than in the correspond !
ing period of 1880, although it is about |
$50, 900 GOO below the level of the three
years, 1929.