Salt Lake Telegram | 1928-01-01 | Page 14 | Business Has Record Year

BUSINESS HAS S Rf RECORD ORD YEAR 1927 Is Second O Only 1 to 1926 WASHINGTON Dec 31 CAP CAP- AP Despite Despite the recession In itt recent months months American business in the the Judgment of of the tho federal reserve board closed Its Is books today today after a year of activity second only only to record breaking 1926 Throughout 1927 the board said in a business review of ot the te year S bank credit was wag abundant for al all al classes of ot enterprise and money rates were relatively low lary after acer midsummer and early autumn when hen discount rates were reduced The Tho supply of capital capita funds arising from national savings was exceptionally large largo and flota nota- of domestic and foreign se se- se tons were in record volume The board summed up the situation situa situa- tion ton in ill this language Industrial and trade act activity m a athe the United States showed a furth decline In the l last t weeks of or 1927 when allowance is made for th the usual seasonal trend and ant at the enc end endot of ot the year production and wholesale wholesale wholesale whole whole- sale trade were in smaller volume than at the close of ot any year since 1924 VOLUME IS LARGE Notwithstanding the recession in business in r recent cent months the v volume l me of activity for the the year as asa asa a a whole was ne nearly as large as the record established was in 1926 and larger han than any previous yer year The output of ot mines and factories fac fac- tories and the volume o b of building construction was somewhat smaller smalle than than the year before though larger than in preceding years Factory employment ment showed a slight d de dc- dc dine for the tile year yer and earnings o of o industrial workers were somewhat reduced while the value of farm products was larger lager than In 1926 Distribution of ot commodities to consumers was was maintained on a high level and there was no evidence evidence evi evi- dence of undue accumulation of in- in The general level o. o commodity prices which l had been declining for about two y years rs turned upward rd In th the early summer of f 1927 17 and at the tile close of t the year the year was only only about 1 per cent lower than at the end of ot 1926 Under the heading of ot industrial industria activity the board said that that except for minor fluctuations industrial production declined steadily afe April Apri 1 1 raIling falling In Ii July July below the level level of ot 1926 arid and ard after October be below be- be low lowr that of 1925 When allowance is made for customary seasonal movements the production of manufactures manufactures manu manu- in November the l latest lates test month for which complete figures are are available was wa smaller than In any month since November 1924 Recovery in manufacturing activity activity ac ac- ac- ac during the early months o othe ot of the year from the tile low level reached reache In December 1926 was general genera throughout most of ot the industries the review added Although in increases increases in- in creases at that time were especially largo large in iron and steel automobiles and rubber tires tres the higher r level leve of ot production in the spring as compared compared com corn pared with Ith the corresponding period of ot 1926 reflected chiefly the output In the textile ard and leather industries WOOL RECOVERS Cotton Coton and silk sik consumption was larger than in previous any year and the wool and leather industries recovering somewhat from the de depression de- de pr of ot recent years we wee were e more morea a active than for tor any year since 1923 In October and Nove November ber these hese In Industries Industries industries In- In showed some decline in output along with wih other industries but continued somewhat la larger ger than thana a year earlier earler The largest part of ot decrease during the last half hal of ot the year oc occurred occurred occurred oc- oc in the the two Industries showIng showIng showing show- show Ing the bigg biggest st Increase at the be beginning be- be ginning iron ginning iron and steel and automo automo- biles bies The decrease decrease was par particularly sharp in a automobile automobile- man manufacture facture the tile board said due in large I measure by cessation of production by the tho the Ford Fod Motor company while preparations preparations prepa prepa- rations were under way for production production tion ton or ofa a new model which brought automobile pro production lower in 1927 than in any any year since 1922 Th There re yet were yete also de decreases rea s during the last last halt half of the year year in nonferrous nonferrous nonferrous rous m metals building materials rubber tires tres food products and nd all al industries ex except ept textiles textile's leather petroleum refining and tobacco manufacturers were less active toward the end Gt af f 1927 than a year a earlier arlier earler S Agricultural developments durig during dur dur- ing ig lg tho year were in contrast contrat to the course of or Industry the review continued Ag Agricultural prospects which at the beginning of 1927 were not as bright a athe s the industrial outlook out- out look ook look Improved considerably in the tile theatter latter atter part of the year Late in the spring prices prices of ot agricultural l commodities com corn began to 0 rise reflecting chiefly increases In the price of ot cot- cot corn and cattle catte Subsequently prices rices of other products products' also ad advanced advanced advanced ad- ad and since wholesale prices of nonagricultural commodities showed little Ite ch change during this period period the purchasing power of ot agricultural products was considerably considerably consider consider considerably ably Improved In a dl discussion of ot Industrial profIts profits prof- prof usson Its ts the board said declining prices and curtailed industrial activity in the he course of the year yeat has had the effect of ot reducing profits prots of ot Industrial industrial Indus- Indus trial rial corporations b below low the high level of ot 1926 1026 Net ot of corporations from which reports were summarized by the Federal Reserve Deserve bank of ot New York were about 5 per cent smaller f for r th the first three quarters of or 1927 than for tor forthe the he same period of 1926 but considerably considerably considerably consid consid- larger than In the same pe- pe nod iod of 1925 or or 1924