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M O N T H L Y R E V IE W OF B U S I N E S S C O N D IT IO N S JOHN PERRIN, Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco San Francisco, California, April 16, 1923 Yol. VII Summary o f National Conditions weeks of the past four years. Car shortage has Further increases in the production of basic commodities, in wholesale prices, employment, wage rates, and wholesale and retail trade took place in March. Production. Production in basic industries, according to the Federal Reserve Board’s in dex, increased 4 per cent in March to a level 8 per cent higher than at the 1920 peak and 67 per cent above the low point of 1921. The out put of pig iron, steel ingots, automobiles, and crude petroleum, and the mill consumption of cotton exceeded all previously reported monthly totals. Building operations showed a further large expansion, and the value of contracts let for residences in March was the highest on record. Railroad freight shipments have been larger every week this year than in the corresponding PER CENT V v \ \ V / tr / been reduced to the lowest point since Septem ber, chiefly as a result of the addition of new equipment, a decrease in the number of bad order locomotives and cars, and a concerted effort to increase the average loadings. Employment in the building trades and in many lines of manufacturing continued to in crease in the Eastern states. The surplus of unskilled labor in the W est reported in earlier months is being gradually absorbed by the seasonal increase in farm work. A number of leading textile mills, steel mills, and packing plants announced general wage advances rang ing between 11 and 12^2 per cent, and numer ous wage advances in other industries also were reported. Trade. March sales by department stores re porting to Federal Reserve Banks were 22 per MILLIONS OF DOLLARS 300r ft No. 4 BILLIONS OF DOLLARS I6r 250 V 'X \ 200 S/* 150 100 50 , i i_ i_ i i r Index oi Production in Basic Industries Combination of 22 individual series corrected for seasonalrariation (1919 average = 100 per cent) i i * _i i i _t..i i i 11 !...1 i, 1919 1920 1921 1922 1923 1919 1920 1921 1922 1923 Prices Bank Credit Bank Credit Index numbers of wholesale prices. United States Bureau of Labor statistics (1913 averaee=100 per cent) All Federal Reserve Banks 800 member banks in leading cities A substantial, black, cloth-covered, three-ring binder, large enough to contain one year’ s (12) issues o f this review, will be mailed prepaid to any address on our mailing list upon receipt o f one dollar to cover actual costs. 50 M O N T H L Y R E V IE W OF B U SIN E S S C O N D IT IO N S cent above those of March a year ago, partly because Easter purchases were made in March this year, whereas last year such purchases were largely deferred until April. Stocks of goods held by department stores were 6 per cent larger than those held a year ago, but this increase was not as large as the increase in sales, and hence the rate of stock turnover has been somewhat more rapid. Sales by mail order houses were larger than for any month since November, 1920, and 35 per cent larger than in March, 1922. Wholesale trade in all reporting lines was larger than in March a year ago. Wholesale prices. Wholesale prices as meas ured by the Bureau of Labor statistics index advanced 1.2 per cent during March and were 15 per cent above the low point of January, 1922. A s in recent months the prices of metals and building materials showed the greatest in creases, while fuel prices showed a further de cline from recent high levels. Compared with a year ago, metals were 37 per cent and build ing materials 28 per cent higher. The cost of living increased slightly more than 1 per cent during March to a level of 3 per cent higher than a year ago. Bank credit. During the month prior to April 11th a more moderate growth in the de mand for credit from member banks in leading cities resulted in an increase of about $48,000,000 in their loans made largely for commercial purposes, as compared with an increase of $235,000,000 in the preceding month. Through withdrawal of funds from investments and a further inflow of gold, member banks have been able to meet demands of their customers for increased credit and currency indepen dently of the reserve banks. Consequently, the total volume of Federal Reserve Bank credit, measured by total earning assets has remained relatively constant during the past month, and in fact since the seasonal liquidation at the turn of the year. The volume of Federal Reserve notes in circulation has also changed but little as the larger demand for hand to hand money has been met chiefly by an increase in other forms of money in circulation. There has been little change in money rates from those pre vailing in March. Summary of District Conditions Activity of production and trade, which has been marked since the first of the year, was sustained during March, with records of pre vious years being steadily approached or ex ceeded in numerous lines of activity. Labor is fully employed and wages are advancing. Sub stantial increases in rates of pay in the lumber ing, mining, and metal trades industries were announced during March. Farmers in many sections are having difficulty in securing ade quate help for spring planting and cultural work because of the relatively low wages paid agricultural laborers. Practically all of the lumber mills of the district are now in opera tion, and production during March was esti mated to be 10 per cent above normal for that month. The volume of orders received and shipments made continued greater than pro duction. Output of the mines of the district increased, the metal market continued active, and prices of the principal metals produced, except silver, rose. Petroleum production in California at 632,522 barrels per day estab lished another record during March, and stor age stocks, already large, were increased. Prices paid for crude oil in Southern California fields were reduced during the month from 1 to 41 cents per barrel, according to the gravity of the oils. Flour millers, having completed their fall and winter production program, cur tailed their operations slightly during March. Building permits issued during March were greater both in number and value than in any previous month of which there is record. There were 13,358 permits authorizing construction valued at $40,203,440 issued in 20 reporting cities. Retail trade at department stores, during March, exceeding in value that of a year ago by approximately 20 per cent, was being car ried on with stocks only slightly larger than those then held. Eleven lines of wholesale business reported increases in the value of their sales during March, 1923, compared with March, 1922, and in the majority of lines the percentage increase was greater than the in crease in the wholesale price level during the same period. The total activity of business in the district, as indicated by debits to individual accounts at banks in 21 cities, was 25.8 per cent greater than one year ago, the largest yearly comparison reported since 1920. Busi ness failures during March declined in number and in amount of liabilities. The business prosperity reflected in the fore going comparisons has resulted in a steadily expanding volume of bank credit in the dis trict. Total loans, discounts and investments of 66 reporting member banks, located in the principal cities of the district, increased from FEDERAL RESERVE A G E N T A T S A N FR A N C ISCO $1,289,000,000 on March 7, 1923, to $1,340,000,000 on April 11, 1923, the latter figure being slightly in excess of the highest previous fig ure, $1,331,000,000, reported on December 17, 1920. Comparison of the present condition of these banks with their condition then, how ever, reveals that while total loans and invest ments are now at the 1920 peak, total deposits at $1,328,000,000 are considerably above the peak of $1,185,000,000 reported in the fall of 1920. A s a result the total deposits of these banks are today 99.1 per cent of their total loans and investments, as compared with 88.2 per cent at the peak of the credit expansion in 1920 (see accompanying chart). A s might be 51 Crops and livestock of the district are in good condition. The past winter has not been severe and early spring weather has been gen erally favorable. Rains during the first week of April ended a six-weeks dry spell in Cali fornia, relieving a situation which was becom ing serious both for the livestock and general farming interests. Crop Conditions The condition of fall sown grain crops on April 1st was slightly below the average of the past 10 years in six of the seven states of the district, and far below the average in the seventh state, California. Except in the latter MILLIONS OFDOLLARS__________________________ PERCENT state, however, these crops are now in better condition than they were on December 1, 1922, TOTAL LOANS TOTAL RATIO OFTOTAL AND INVESTMENTS DEPOSITS DEPOSITS TO having been favored by a comparatively mild winter and a plentiful supply of moisture. In California the usual seasonal rains did not fall during the latter half of February and the month of March, and not only wheat and bar ley, but other crops suffered greatly from lack of moisture. General rains during the first week of April did much to improve the situa tion, and the condition of all crops is now con siderably above that reported on April 1st. United States Department of Agriculture figures showing the condition of fall sown wheat follow : Condition of Reporting Member Banks in Twelfth Distric A comparison of 1920 peaks. 1921-1922 low points, and the latest available figures. expected under such conditions demands of member banks upon the reserve bank for credit have thus far been light, although during the past month they have tended more strongly upward. Total discounts of this bank, which advanced from $42,926,000 to $58,749,000 dur ing the five weeks ending April 18, 1923, are now little more than one-third as large as total discounts at the peak of credit expansion in 1920. Interest rates charged their customers by banks of the district have tended upward during the past month and at San Francisco, the principal financial center of the district, they now stand at 5 y 2 to 6 per cent compared with 5 to S y 2 per cent at the beginning of March. The general price level continued upward during March. Prices of many agricultural ^products of the district, however, are now flower than one year ago, the principal excep tions being wool, cotton, sugar, and barley, all of which are selling at prices considerably above those of April, 1922. Prices for lumber, copper, lead, and zinc advanced during the past month. Condition April 1st Ten Year 1923 1922 Average Arizona ...... . 94 California ... . 75 91 Nevada....... . 92 Oregon ...... . 91 Utah .......... . 85 Washington .. 84 United States. 75.2 95 94 92 88 90 89 85 78.4 93 91 94 95 95 95 89 84.1 Condition December 1st Ten Year 1922 1921 Average 90 96 81 90 91 70 77 79.5 95 95 92 90 81 91 85 90 92 92 80 90 79 88 76.0 87.9 Inactivity in the wheat markets of the dis trict, which has obtained during the greater part of the present season, persisted during March, and sales for both domestic and foreign account were relatively small in volume. Ex ports of 1922 crop wheat from Portland and the Puget Sound ports were lighter during the past month than during any previous month of the current season. Commercial factors report that plantings of rice in California this year will be somewhat less than the 140,000 acres planted to that crop in 1922. It is estimated that approximately 2,350,000 bags of 100 pounds each, or 63.4 per cent, of the 1922 California rice crop remained unsold on April 1, 1923. Unsold stocks at this time last year totaled approximately 1,650,000 bags of 100 pounds each, or 50 per cent of the 52 M O N T H L Y R E V IE W OF B U S IN E SS C O N D IT IO N S 1921 crop. Kxport movement of rice has been considerably less than during the preceding season, largely due to a marked decline in the volume of shipments to Japan. A s a result of comparative inactivity in export markets, and a sluggish domestic demand, prices for rice have tended to decline since the harvesting of the 1922 crop. The present price to growers, $2.25 per 100 pounds of number one paddy rice, is approximately 9 per cent lower than in Jan uary, 1923, and nearly 20 per cent below the growers’ price last year at this time. Planting of cotton has progressed to a point where it is possible to make an estimate of the acreage which will be devoted to the crop this year. Observers in all of the cotton growing sections, including the Salt River and Yuma Valleys of Arizona and the Imperial Valley of California, report that there will be an increase over last year’s plantings of 181,000 acres. Practically all of the 1922 medium staple cot ton crop in California, which, according to final ginning reports, amounted to 28,473 bales, has been sold. Growers are reported to have re ceived from 28 to 30 cents per pound for a large part of their 1922 crop, as compared with an average return of approximately 19 cents per pound for the 1921 crop. Present unsold stocks of Pima cotton in Arizona are estimated at ap proximately 3,000 bales, or less than 10 per cent of the 1922 crop of 32,786 bales. Consump tion of Pima cotton by New England cotton mills has increased during recent months and is now ranging between 4,500 and 6,000 bales per month. The increasing demand for Pima cotton has maintained prices at a compara tively high level, despite the active competi tion of cotton of equal staple length imported from Egypt. Growers are now receiving 34 cents per pound for number two Pima cotton, compared with a price of 29 cents per pound received for the same grade of cotton at this time last year. Forecasts of prospective increases in plant ings of sugar beets this year as compared with last year are being confirmed as the planting season progresses. Weather conditions have been favorable, especially in California where the rains of early April facilitated planting and favored growth. Commercial factors estimate that last year’s plantings of 59,000 acres in California will be increased by more than 25 per cent during the forthcoming season. The extent of the acreage already contracted to grow sugar beets in Idaho and Utah indicates that the increase in acreage in those states will be not less than 20 per cent. Growers and sugar companies in Utah and Idaho have now agreed upon a contract which guarantees the growers a minimum price of $5.50 per ton for their beets. This represents an advance of 50 cents per ton over last year’s guaranteed mini mum price in Utah, and is the same as the minimum price paid in Idaho in 1922. A s was mentioned in the February review, the 1923 contract between sugar companies and growers in Southern California advanced prices 28 per cent over those paid in 1922, while growers in Central and Northern California are to be paid on the same scale of prices as last year. Approximately 23,000 acres have been or will be planted to early potatoes in California during the present season, as compared with plantings of 28,340 acres last year, according to an estimate recently published by the United States Department of Agriculture. The record crop of potatoes, 46,307,000 bushels, grown in the district in 1922 brought low prices to the growers, and many fields were not harvested because their owners were unwilling to incur the additional expense of digging the crop. Although the marketable crop was greatly re duced by this failure to harvest all potatoes grown, and by unusually heavy losses resulting from careless storage, present unsold stocks are larger-than normal. During the first two weeks of April, however, demand has become more active, prices have risen, and growers in the late producing areas, particularly in Idaho, are now hopeful of disposing of present stocks before the new crop comes on the market. Stored stocks of boxed apples in this district are more than three times as large as they were at this time last year. The following table shows in a general way the size of present holdings compared with those of a year a g o : 1922-1923 1921-1922 (cart) (cars) Total commercial crop of apples..... 44,800 51,123 Shipments July 1st to March 31st__ 39,514 49,602 Remaining in storage in the district.. 5,286 1,521 The figures of shipments of apples, of course, are somewhat smaller than the total sales of apples within and without the district, and storage losses, which are usually greatest in years characterized by dull markets and low prices, have undoubtedly reduced the amount of the crop which is saleable, so that there are now probably considerably less than 5,000 cars of unsold apples in the district. Prices paid growers for apples continued the downward movement of recent months and on April 1st were approximately 44 per cent lower than they were a year ago. A s the late harvesting season has progressed, further revision of estimates of the 1922-1923 Navel orange crop in California has been nec essary. The total yield is now placed at 9,516,000 boxes compared with a yield of 9,260,000 boxes estimated on March 1, 1923, and a final FEDERAL RESERVE A G E N T A T S A N FRA N C ISCO yield of 6,445,370 boxes during the 1921-1922 season. Preliminary estimates of the forth coming Valencia orange crop in California place the total yield at 9,958,000 boxes, of which only a small quantity has yet been picked. There were 5,905,073 boxes of Valencia oranges produced in 1922. The lemon crop is still estimated to be slightly in excess of 4,000,000 boxes. Total shipments of oranges and lemons up to April 1st of the past two seasons have been as follows: Nov. 1st to April 1st 1922-1923 1921-1922 (care) (care) Oranges ................................................. 20,529 Lem ons ................................................. 2,798 19,113 3,120 Deciduous fruit orchards of California, in general, have set large crops as a result of un usually favorable weather during the blossom ing season. In the other fruit growing sections of the district the season has not progressed far enough to warrant a statement concerning the new crop, but no unfavorable conditions have been reported. Canned and Dried Fruits 53 strengthening the whole dried fruit market. Unsold stocks of raisins in California are still large. Including various small holdings of mis cellaneous varieties of raisins, in addition to the Thompson seedless and Muscat raisins, which make up the bulk of the crop, it is esti mated that approximately 43 per cent of the 1922 crop of 230,000 tons remained to be sold on April 1, 1923. On April 1, 1922, there was approximately 35.7 per cent of the 1921 crop of 145,000 tons unsold in packers’ hands. Livestock Mild weather in the Intermountain states and timely rains in California during the past month have greatly benefited the livestock in dustry of the district. Feeding is still neces sary in many sections of the Intermountain states, but spring rains and brief periods of warm weather have started the grass on the ranges, and the condition of livestock has al ready begun to improve. In California, much of the damage suffered by pastures and ranges during the drought of February and March was repaired by the rains of early April. Although present unsold stocks of canned fruits of the 1922 pack held by canners in this district are estimated to be larger than stocks of 1921 pack fruit held a year ago, it is re ported that the proportion of the total pack of the previous year yet to be marketed is prac tically the same as it was last year at this time. The market situation has improved slightly during the past month. Reduced prices for the lower grades of canned fruit, which grades con stituted an unusually large proportion of the 1922 pack, have stimulated the demand for this class of goods and stocks are steadily moving into the hands of distributors and consumers. Present prices of the largest factor in the trade for the four most important canned fruits are contrasted with the opening prices named for the same fruits in the following table: Opening Price, 1922 Pack Choice Standard Grade Grade No. T/a Cans (perdoz.) (perdoz.) Apricots, Sliced ............$ 2 .7 0 Cherries, Royal Anne 3 .9 0 Peaches, Y ellow Cling 2 . 6 0 Pears, Bartlett ............... 3 .2 5 Price on April 1,1923 Choice Standard Grade Grade (perdoz.) (perdoz.) $ 2 .3 0 $ 3 .3 0 $ 1 .8 5 3 .3 5 4 .1 5 3 .0 0 2 .2 0 2 .7 5 1 .8 5 2 .8 5 3 .1 0 2 .7 5 During the past month the market for dried fruits has been more active than at any time this year. Reports indicate that further de clines in independent packers’ quotations on dried apricots, prunes, and some varieties of raisins have resulted in material reductions in the smaller holdings of these fruits, thereby Receipts of Livestock at Eight of the Principal Markets of the District 1922-1923. (Los Angeles, Ogden, Portland, Salt Lake City, San Francisco, Seattle, Spokane, and Tacoma included) Lambing has been practically completed in California and Arizona and is progressing rap idly in the Northern states of the district. A large increase and light losses have been re ported from all sheep-raising sections. Ship ments of spring lambs from California and Ari zona, to both local and Eastern markets, are increasing in volume, and the peak of the movement is expected early in May. Estimates of the United States Department of Agriculture indicate that the number of brood sows has increased during the past year in all of the principal hog-raising states of this M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S 54 district. The figures for the district and for the United States follow: BROOD SOWS April 1.1923 Per cent of preceding Year Number Tw elfth District . . United S t a t e s ......... 105.8 106.7 242,353 13,256,000 Estimated Number April 1, 1922 229,398 12,424,000 and lambs are selling at prices slightly below those prevailing in April, 1922. W ool growers’ costs of production are reported to have in creased during the past year, but not in pro portion to the advance in the selling price of wool. SH E E P AND L A M B S P O L L A R S P E R 100 P O U N D S W OOL C EN T S PER POUND Receipts of all classes of livestock at eight principal markets of the district during March, 1923, were well above receipts during the same month a year ago, and showed a normal seasonal increase over receipts of the previous month of this year. Grass fattened cattle from California ranges are coming into the market from two to three weeks earlier than last year, when the movement was delayed by unfavor able weather and range conditions. Receipts of Livestock at Eight Principal Markets Cattle Calves Hogs M arch, 1 9 2 3 ... 71,503 February, 1 9 2 3 ... 69,919 March, 1 9 2 2 ... 64,782 16,147 15,683 11,463 184,025 176,203 131,665 Sheep 219,540 185,245 170,258 Prices for cattle, hogs and sheep at the prin cipal markets of this district advanced slightly during the past four weeks, while the price of lambs at the same markets declined. Weekly Average Prices of Wool (Average of 98 quotations), Choice Lambs, and Aged Sheep, 1922-1923 W ool Dairy and Poultry Products Sheep raisers of the district report that their flocks are in excellent condition, that fleeces are well grown and of better than average quality, and that the total 1923 wool clip will probably exceed the 1922 clip of 74,000,000 pounds. Preliminary commercial estimates of the forthcoming clip by states in this district, as compared with final estimates of the 1922 clip, are given in the following table: Holdings of cold storage butter in the prin cipal markets of this district declined rapidly during March, reaching the lowest point re ported since accurate records were first kept in January, 1920. Total cold storage stocks of butter on April 1st, at 66,173 pounds, were 82.5 per cent less than the total holdings on March 1, 1923, and 41.6 per cent less than on April 1, 1922. Seasonal increases in fresh but ter production in this district and advancing prices in Eastern markets have induced owners of cold storage butter to ship a considerable part of their holdings out of the district. There was a heavy movement of eggs into cold storage during March, 1923. Total cold storage holdings of 145,204 cases of eggs on April 1, 1923, were 15.5 per cent greater than they were on April 1, 1922. A summary of the cold storage holdings of butter and eggs in the chief markets of the Twelfth Federal Reserve District is presented in the following table: 1923 1922 Arizona ....................................... California ................................... Idaho ............................................ Nevada ........................................ O regon ....................................... Utah ............................................. W ash ington ............................. 6,750,000 14,500,000 16,500,000 7,500,000 14,000,000 16,000,000 4,250,000 6,000,000 13,455,000 15,000,000 6,580,000 12,992,000 15,984,000 4,112,000 D is t r i c t ........................................ 79,500,000 74,123,000 W o ol buyers in the range country during the past two months are reported to have offered from 35 to 45 and 50 cents per pound for wool, depending upon the quality of the clip and the location of the nearest shipping point. Growers are not anxious to sell, however, and only a small proportion of the forthcoming clip has been sold on contract before shearing. Shear ing has already begun in most sections of the district. Price trends for wool, sheep, and lambs are graphically presented in the accompanying chart. W ool prices are now approximately 38 per cent higher than one year ago, and sheep April 1, 1923 Butter (p o u n d s).. 66,173 E g gs (c a s e s )......... 145,204 March 1, 1923 Feb. 1, 1923 April 1, 1922 378,764 1,352 639,981 706 113,648 125,670 Prices Many of the principal agricultural products of this district are now selling at prices below those of a year ago, the list of such commodi ties including wheat, certain dried fruits, and FEDERAL RESERVE A G E N T A T S A N F R A N C ISCO all meat animals except cattle. Insofar as the cost of goods and services which the producers of these crops and animals must purchase have generally risen, the purchasing power of their products has been further reduced. During March there was little change in the general price level. Prices of all classes of live stock, except lambs, advanced moderately. W heat sold slightly higher than during the previous month. The average of 98 wool quo tations in the Boston market, at 82.14 cents per pound on April 6, 1923, was fractionally lower than the same average on March 2, 1923, but 38 per cent higher than in April, 1922. The price of cotton also declined during March, but continues approximately 43 per cent above the levels of a year ago. Prices for fresh, canned, and dried fruits tended downward during the past month. The sugar market has moved in an erratic manner in recent weeks, but advances in prices have generally been maintained after tempo rary reactions. Refined beet sugar in the San Francisco market was quoted at $9.10 per hun dred pounds on March 2nd, advanced to $9.40 55 per hundred pounds on March 14th, declined to $9.00 per hundred pounds on April 6th, and advanced to $9.40 per hundred pounds on April 13th. The latter price is 61.6 per cent above the price quoted in March, 1922. The price of copper advanced one-half cent INDEX NUMBERS 260 220 180 140 »00 0 1920 _______ 1921 1922 1923 Wholesale Prices and the Cost of Living, 1920-1923 United States Bureau of Labor Index of Wholesale Prices (1913=100) National Industrial Conference Board Index of the Cost of Living (July 1914=100 (A) Commodity Prices— Commodity Tw enty Basic Commodities (F . R. B. of N . Y .) 1913 =1 00 . W holesale Prices (U . S. Bureau of Labor*) 1 9 1 3 = 1 0 0 ____ Cost of Living (National Industrial Conference Board) July, 1914=10( ) ....................................................................................... Cattle (Native B e e f). . .W eek ly average price at C h ica g o .. Sheep .................. Lam bs ................ H ogs ................... W h e a t .................. .Chicago contract prices for M ay W h e a t. B a r l e y .................. .Shipping Barley f. o. b. San F ra n cisco .. . R i c e ...................... .California Fancy Japan at San Francisco C o t t o n .................. .Middling Uplands— W e ek ly range of spot quotations at N ew O rlean s...................... W o o l .................... .Average of 98 quotations at B o sto n ......... F l o u r .................... .First Grade Family Patent f. o. b. Pacific Coast mills ........................................................ S u g a r .................... .Beet granulated f. o. b. San F r a n c isc o ... O r a n g e s ............... .Navels, Market pack, L os A n g ele s........... L em ons ............... .Loose pack at Los A n g ele s........................... Dried A p p le s ... .Choice in 50-lb. boxes f. o. b. Californ ia.. Dried A p ricots.. .Choice in 25-lb. boxes f. o. b. California.. Prunes ................. . Size 40/50 in 25-lb. boxes f. o. b. Calif___ Raisins ,................ .L oose Muscatel in 25-lb. boxes f. o. b. California .......................................................... Canned Apricots.C hoice 2 JA s f. o. b. California...................... Canned Peaches. .C ling Choice, 2V2s f. o. b. California......... Canned P e a r s... .Bartlett, Standard 254s f. o. b. California Raw M ilk ............ .Pacific Coast— January average.................. B u t t e r .................. .93 score at San Francisco............................... E g g s ..................... . Extras— San Francisco..................................... Copper ................ .Electrolytic; N ew Y o rk S p o t...................... Lead .................... .N ew Y o rk S p o t................................................... Silver ................... .N ew Y o rk F oreign ............................................. Z i n c ...................... .East St. Louis S p o t............................................. Petroleum ......... .California 35° and above................................. D ouglas F ir........ .2x4, 16-ft. No. S1S1E f. o. b. Seattle......... Douglas F ir........ . 12 x 12 Tim bers f. o. b. Seattle......................... *Revised figures. Unit 100 100 100 100 lbs. lbs. lbs. lbs. bu. cental cental lb. lb. bbl. 100 lbs. box box lb. lb. lb. lb. do z. doz. doz. 100 lbs. lb. doz. lb. lb. oz. lb. bbl. M ft. M ft. April 6.1923 One Month Ago One Year Ago 161.3 159.0 159,6 157.0 127.6 142.0 159.2 $9.10 157.5 $8.85 7.50 13.95 154.7 $7.85 9.75 13.90 10.30 1.30-1.33 1.40-1.55 5.00 8.20 13.45 8.00 8.40 1.2 1^ -1.23 5$ 1.16JÍ-1.18J4 1.65-1.75 1.65-1.75 4.40 4.15 28.00-29.50tf 82.144 7.79 9.00 2.25-2.75 3.00-3.25 .08 .21 -1054 .11 3.30 2.75 2.75 2.69 .43 .29J4 •17Vs 8.304 •66fá 7.4S-7.S04 1.45 23.50 25.00 29.75-30.13tf 82.364 16.63-16.75tf 59.64tf 7.79 9.10 2.50-3.00 3.00-3.25 .08Y2-.08Y4 .2 2 -2 3 . u y 2- . i m 8.08 5.70 4.50-5.50 2.25-2.50 .1654-17 .26 .13J4-.14K .11 3.15 2.60 2.85 2.80 .45 27y2 .167/8 8.50 4 .66 7.80-7.8S4 1.45 22.50 24.00 .1 5 « 3.00 2.60 3.00 2.51 .3154 .27 .1 2 « 4.904 .65 y4 4.90-4.95 tf 2.45 11.50 15.00 56 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S per pound during the month, and at 17}& cents per pound, is now higher than at any time since September, 1920. Lead and zinc quotations de clined slightly during March, but present prices of these metals are still 60.9 per cent and 51.4 per cent, respectively, above the prices of a year ago. Milling Production of flour at reporting mills of the district declined during March, as millers pre pared to dispose of stocks of flour which have been accumulating during the past autumn and winter. The curtailed output of March, 1923, was greater, however, than production in March, 1922. No. of Mill« Reporting Mar.. Feb., 1923 1923 California . . 10 Idaho .......... 3 O regon ___ 18 W ashington 17 D is t r i c t ........48 10 2 15 16 43 Mar., 1923 (barrels) — Output— Feb., 1923 Mar., 1922* (barrels) (barrels) 243,179 11,386 144,273 311,403 264,144 5,831 144,675 378,624 303,859 9,640 102,989 300,734 710,241 793,274 707,202 Lumber Practically all of the sawmills of the district are now in operation, many of them on a double shift basis, and production of lumber during March was estimated to be approximately 110 per cent of normal production for that month. Figures on production, new business received, and shipments made during March, 1923, were all greatly in excess of the corresponding fig ures for February, 1923, or March, 1922. A record of the activity of reporting mills fol lows (000 omitted) : Mar., 1923 (board feet) P r o d u c tio n ................573,471 Shipments .................659,718 O r d e r s .........................601,543 Unfilled O rd ers— 639,430 Feb.. 1923 (board feet) Mar.. 1922 (board feet) 419,321 574,138 598,805 626,895 403,269 439,281 486,777 382,170 M IL L IO N S OF B O A RD F E E T *61 M ills reporting. The market for flour during March was only moderately active. Notwithstanding the de- Lumber Production, Orders Received, and Shipments in Twelfth Federal Reserve District as Reported by Four Lumber Associations, 1922-1923 THOUSAND BARRELS 900 700 500 300 10 0 Monthly Flour Output, and Stocks of Wheat and Flour at End of Month, of 16 Reporting Milling Companies cline in output during the month, millers pro duced more flour than they sold. Stocks of flour held at mills, as reported by 16 large com panies, were increased by 38,940 barrels, and at 549,582 barrels on April 1, 1923, were slightly in excess of stocks held a year ago. Millers' stocks of wheat were further reduced, and are now 58 per cent greater than a year ago. A t the close of February, 1923, they were 88 per cent greater than at the close of February, 1922. Continued excess of shipments over produc tion during March resulted in a further de crease in stocks of lumber from the already low level of the previous month. Mill holdings on March 1, 1923, were reported to be less than 50 per cent of normal. Unusual activity in the lumber market con tinued during March. In the domestic market the railroads, industrial consumers, and the country trade were the principal purchasers of lumber. Foreign buyers contracted for approxi mately 42 per cent more lumber during March, 1923, than during March, 1922, and increased the volume of their February, 1923, purchases by more than 20 per cent. Activity in the shingle branch of the lumber industry, which has been quiet for some time, increased during March. A majority of the shingle mills of the district are now in opera tion, according to recent reports. Conforming to the usual seasonal trend, ac tivity in the logging industry increased notably during March, 1923, compared with February, 1923. The supply of logs, which in many cases had declined to very low levels, has been quickly replenished, and mills now in operation 57 FEDERAL RESERVE A G E N T A T S A N FRA NC ISCO report that present supplies are generally ade quate for their needs. Mining The mining industry of the district is re ported to be in better condition than at any time in the past two and a half years. During February, Î923, the latest month for which figures are available, production of copper, lead, silver, and zinc continued at the high levels reached during January, 1923, and the output of each metal was greatly in excess of that of a year ago. The market for copper, lead, and zinc has been active, with prices ad vancing slightly. Stocks of lead and zinc held by producers are reported to be small, and stocks of copper have been decreasing steadily. The present position of silver differs from that of the other non-ferrous metals. The silver mining industry of this country has maintained its output at normal levels throughout the past three years, the lack of fluctuation in produc tion being a reflection of the fixed price of $1 per ounce paid by the government under the Pittman Act, for silver from domestic mines. Average price during March, 1923, for silver not coming under Pittman Act purchases was 67 y 2 cents per ounce. On March 30th the Director of the United States Mint announced that purchases of silver by the government un der the Pittman Act would probably be com pleted about July 1, 1923, whereas previous re ports had indicated that silver purchases would not be completed until October 1, 1923. The silver mines of the district are therefore bend ing their efforts toward maximum production of the metal during the three months remain ing before government purchases at the pres ent fixed price will be discontinued. Figures showing the national production of copper, silver, and zinc, three of the most im portant metals produced in this district, are shown in the following table, which compares the output in February, 1923, with January, 1923, and February, 1922: Copper (lbs.) Feb.. 1923 Jan., 1923 Feb.. 1922 (mine production) 102,515,414 112,341,097 37,415,808 Silver (oz.) (commercial bars) 4,728,953 5,189,745 3,878,498 Zinc (tons) (slab) ............ 35,616 46,317 22,513 Figures for lead are not available. Production of gold in California at deep gold mines and from dredging operations has been maintained at normal levels during the past few months. Gold mines reporting to this bank indicate that operations during the past month were being carried on at 100 per cent of capa city. Average prices quoted for copper, lead, sil ver, and zinc during March, 1923, reflect the increases which have occurred in the metal market during the past month and the past year. Copper, silver, and zinc are now quoted at the highest prices reported since October, 1920 ...... . Average Prices ■- > / Mar., 1923 Copper (lb.) (cents) New York Electrolytic. 17.08 Lead (lb.) New York ............... 8.25 Silver (oz.) New York Foreign..... 67.55 Zinc (lb.) St. L o u is .................. 7.70 Feb.. 1923 (cents) Mar., 1922 (cents) 15.60 12.81 8.05 4.72 64.31 64.44 7.15 4.65 Petroleum Each new figure on monthly production of petroleum in California exceeds the record es tablished in the previous month. During March, 1923, the average daily output was 632,522 barrels, an increase of 45,852 barrels or 7.2 per cent over the average daily output in the previous record month of February, 1923. In M IL L IO N S 1922 1923 CALIFORNIA Production, Shipments, and Stored Stocks of Petroleum, and Refinery Stored Stocks of Gasolene, 1922-1923 Figures for months subsequent to August, 1922, furnished by American Petroleum Institute. Figures for previous months partly estimated. comparison with March, 1922, production has increased by 89.5 per cent. Daily consumption of petroleum during March, 1923, averaged 575,065 barrels, an increase of 12.9 per cent compared with the previous month, and of 96.8 per cent compared with March, 1922. March production exceeded consumption by 56,957 barrels per day and stored stocks of petroleum rose to a new record figure of 66,593,571 bar rels. Seventy-one new wells were completed during March and 21 wells abandoned, a net 58 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S increase of 50 producing wells during the Figures showing the number of industrial month. consumers and industrial sales of 20 reporting Stocks of gasoline held at refineries in Cali power companies during February, 1923, and fornia on March 1, 1923, totaled 119,809,000 February, 1922, are shown in the following gallons compared with 116,433,560 gallons held table. It is noteworthy that, whereas the num on February 1, 1923, and 43,396,946 gallons ber of industrial consumers in the Intermounheld on March 1, 1922. The increase compared M I L L I 0 N S OF K I L O W A T T H O U R S with a year ago amounted to 56.7 per cent. 450r Prices of petroleum and petroleum products, which have been declining during the past few months, were again reduced during April, this 400 -------------------- 7 being the fourth reduction since July, 1922. On /V April 10th buying prices of crude petroleum from Southern California fields were reduced 192 2 V by amounts ranging from one cent per barrel 3 5 0 \ / on oil of 20 degrees gravity to 41 cents per . / % / barrel on oil of 35 degrees gravity and above. / f N . There were no reductions in buying prices of 3 0 0 s i 1923 / heavier crude oil of 14 to 19.9 degrees gravity. # ——• / The price of gasoline in the territory served by $ California producers was reduced 1 cent per 2 5 0 gallon and engine distillate one-half cent per gallon on the same date. A statement of pre war, peak, and present prices of petroleum and 2 0 0 gasoline follows: Present Peak Pre.war i i. Crude Petroleum— Southern Cali fornia Fields 25° gravity (b b l.)* $0.74 Gasoline— San Francisco (gallon) t .19 $1.96 .27 $0.55 .155 Electric Energy Sales of electric power for industrial pur poses continue approximately 20 per cent greater than a year ago. Available figures for February, 1923, reported by 20 of the principal power companies in the district, show increases in sales to the manufacturing, mining, lumber ing, oil producing, and agricultural industries, the total increase as compared with February, 1922, being 21.7 per cent. Percentage compari sons of sales by certain industries and by sec tions of the district are presented in the follow ing table: Percentage Increase February, 1923, compared with February, 1922 Total # Agricul Manu Industrial Mining facturing Sales ture 47.3 S0.6 79.4 49.1 2.4 21.5 19.6 9.0 33.0 16.7 37.5 28.8 15.6 10.0 91.9 21.7 The large increase in sales to agricultural consumers is partly the result of the needs of California farmers for power to operate irriga tion systems during the recent dry spell in that state, which commenced about the middle of February. The reported increase in sales to the lumber industry of the Pacific Northwest, which is not shown in the above table, was 24.7 per cent, and to the oil producing indus try of California, 24.0 per cent. i., r i. i I 1 T n j tain section is slightly less than a year ago, their current purchases of electric power are approximately double the figures for last year. *Field price, f Service station price. California ............... . Pacific Northwest. . Intermountain . . . . Tw elfth D istr ic t.. . .i Total Industrial Sales (K. W. H.) of 20 Power Companies in Twelfth Federal Reserve District, 1922-1923 Number of Industrial Consumers Feb., Feb.. 1923 1922 Industrial Sales K.W. H. Feb., Feb.. 1923 1922 California ................... 55,919 Pacific Northwest . . 14,333 Intermountain States 4,980 48,847 13,385 5,427 163,910,223 63,807,405 42,359,847 141,748,548 58,005,918 22,068,438 Tw elfth District 67,659 270,077,475 221,822,904 75,232 Automobile Registrations The total number of automobiles registered in the states of this district (excluding Nevada, for which figures are not available) during the first quarter of 1923, was 1,166,524 compared with 933,201 motor vehicles registered during the first quarter of 1922. This is the annual registration period and by far the greater part of the old cars are registered during these three months. The figures follow: TOTAL AUTOMOBILE REGISTRATIONS Percentage January 1 to March 31, Increase 1923 1922 1923 over 1922 Arizona ............ C a lifo rn ia ......... U tah ................... W ashington . . . . .. 35,209 808,719 32,789 112,585 28,316 148,906 28,729 645,955 25,567 93,360 25,223 114,367 22.5 25.1 28.2 20.5 1,166,524 933,201 24.9 12.2 30.1 This bank has also collected and compiled figures for five states on registrations of new FEDERAL RESERVE A G E N T A T S A N FRA NC ISCO automobiles as distinguished from automobiles purchased in previous years and registered again during the current year. These figures show a great increase in the number of new car registrations during the first two months of 1923 as compared with the same period in 1^22. TotaI Total New Passenger Cars Registered Jan. 1, to Feb. 28, 1923 1922 Arizona.............. 1,276 California ......... 29,126 Idaho ................ 638 Oregon ............ 3,350 Utah .................. 463 Total ............ 34,853 344 14,224 207 1,107 * 15,882 New Commercial Cars Registered Jan. 1, to Feb.28( 1923 1922 67 2,752 70 197 53 3,139 17 1,704 34 26f * 1,781 *N ot available. fFebruary, 1922, only. N o t e : Figures on registrations of old and new automobiles in the states o f the district will appear regularly in the review here after, in the belief that registrations o f new automobiles may afford a reliable index o f changes in the purchasing power o f the community, and indirectly, at least, of general business conditions. Retail Trade Sales of 33 department stores in this district during March, 1923, were 21.2 per cent greater in value than sales during March, 1922, the largest annual increase reported in any month since August, 1920. Stores in all parts of the district participated in the increase, the great est gain, 24.5 per cent, being reported from Spokane. The number of individual sales transactions during March, 1923, as reported by 15 stores, was 15.7 per cent greater than during March, 1922. M IL L IO N S OF D O L L A R S tity of merchandise now on the shelves of these retailers, and the rapidity of its turnover. The majority of stores report an average in crease in value of sales of over 2 0 per cent dur ing the year period, whereas the average in crease in value of stocks has been only 2 .3 per cent. Thirteen of the 3 3 stores report that their stocks on March 3 1 , 1 9 2 3 , were less in value than on the same date a year ago, yet all but one of these stores report a substantial increase in the value of sales during March, 1 9 2 3 , com pared with March, 19 2 2 . A detailed statement of percentage increases in the value of sales of 33 department stores in this district follows: Percentage Increase Number March, 1923 of comparedwith Stores Mar.. 1922 Feb.. 1923 L os A n g ele s............................. 6 Oakland ..................................... 4 Salt Lake C ity..................... ... 4 San Francisco.......................... 8 Seattle ..................................... ... 5 Spokane ..................................... 5 District* (in Millions of Dollars) The value (selling price) of stocks of report ing department stores on March 31, 1923, was 2.3 per cent greater than on March 31, 1922, and 5.7 per cent greater than on February 28, 1923. The comparison with March, 1922, is in forming as an indication of the physical quan ............................ 33 21.4 23.5 23.7 19.7 20.8 24.5 23.8 38.9 45.3 34.5 45.6 43.1 21.2 32.6 *Figures for one store included in district figures but not included in figures for cities shown above. Wholesale Trade The value of sales at wholesale during March, 1 9 2 3 , was 2 1 .8 per cent greater than during March, 19 2 2 , total sales of 20 1 reporting firms in 1 1 lines of wholesale business amount ing to $ 2 6 ,7 8 1 ,3 0 3 this year compared with $ 2 1 ,9 2 7 ,4 3 2 last year. Segregated according to individual lines of business, increases ranging from nine-tenths of 1 per cent in groceries to 5 8 .6 per cent in electrical equipment were re ported. The comparatively small increase in the value of sales of groceries has been attrib uted to marked declines in sales of sugar and dried fruits during March, 1 9 2 3 , compared with March, 1 9 2 2 . The percentage increase or de crease (— ) in the value of sales of all report ing firms in each line of business was as fol lows * Net Sales of 31 Department Stores in Twelfth Federal Reserve District 59 ThreeMonths Ending Mar. Mar. 1923 31,1923 corncomparedwith paredwith Number Mar., Feb., sameperiod of Firms 1922 1923 in1922 Agricultural Implements Autom obile Supplies___ Autom obile T ir e s ............ Drugs ................................... D ry G oo d s........................... Electrical Equipm ent*. . Furniture ............................ Groceries ............................ Hardware ........................... Shoes .................................... Stationery .......................... 22 27.9 75.8 20 33.1 26.9 2046.4 25.7 10 5.6 20.3 15 31.0 27.9 6 58.6 21.2 16 34.9 7.4 29 .9 — 2.5 21 42.7 27.5 14 18.5 30.9 28 22.7 14.4 37.9 23.3 5.6 8.7 30.4 53.5 41.9 12.2 35.1 21.0 22.4 *Beginning with this issue o f the monthly review, figures o f the wholesale electrical equipment and supply business will be regularly included in the wholesale trade paragraph. M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S 60 In nine of the eleven lines of business listed above, the increase in value of sales was greater than the increase in wholesale prices during the year period. (The wholesale price level rose 11.9 per cent from March, 1922, to March, 1923, according to the index number of the United States Department of Labor.) It M ARCH PRICES 1 9 2 2 » 1 0 0 % = M A R C H 1922 SALES U.S.BUREMJ OF LABOR INDEX NO. WHOLESALE PRICES District AGRICULTURAL IM PL E M E N T S A U T O M O B IL E T I R E S DRU GS DRV G O O D S F U R N IT U R E G R O C E R IE S H ARD W ARE SH O ES S T A T IO N E R Y 20 40 60 80 100 120 140 160 Dollar Value of Sales of Representative Wholesale Firms and General Wholesale Prices in March, 1923, compared with March, 1922 therefore seems probable that the total physi cal volume of business transacted at wholesale during March, 1923, was considerably greater than one year ago. * Employment Conjunction of the usual spring increase in the demand for outdoor workers with the en larged labor needs of expanding business and industry has resulted in a marked decrease in total unemployment, a shortage of agricultural labor, and wage increases in at least three im portant industries. According to figures compiled by the United States Department of Agriculture the present supply of farm labor is below normal in all states of the district, and, except in Idaho and Utah, farmers have already been compelled to curtail their cultural operations because of in ability to secure adequate help. The figures for this year and last year are presented in the following table : Supply Per Cent of Normal 1922 1923 March 1, Dec., 1, 1923 1922 Globe-Miami, Arizona. $5.45 Tonopah, Nevada..... 5.75 Coeur d’Alene, Idaho. 5.50 Park City, Utah....... 5.25 Randsburg, California. 6.25 A U T O M O B IL E S U P P L IE S Arizona ....... California .... Idaho .......... Nevada ....... Oregon ....... Utah .......... Washington .. United States. W age increases for skilled and unskilled laborers employed in the lumbering, mining, and metal trade industries were reported dur ing March, 1923. W ages paid mine workers in Arizona, Idaho, and Utah were increased from 7^2 to 15 per cent and similar wage adjust ments were made or are now being made in other mining sections. Present wages of miners are only slightly below the peak wages of 1918 as shown by the following table: 98 94 92 82 92 96 88 83.6 112 107 109 100 103 110 107 99.5 Demand Per Cent of Normal 1923 1922 96 96 92 86 93 92 95 94.6 Supply Per Cent of Demand 1923 1922 85 102 96 98 86 100 94 95 89 96 102 88 92 88 89.3 88.4 132 111 127 106 116 125 116 111.4 $4.95 5.75 5.00 4.75 6.25 Nov., 1918 $6.15 6.00 5.75 5.25 6.25 Jan., 1914 $3.75 4.50 3.50 3.25 The California Metal Trades Association has announced an increase of approximately 5 per cent in the wages of all metal workers in that state. Reports from the 10 principal lumbering sec tions in the Pacific Northwest show that em ployment in the lumber industry on April 1, 1923, was approximately 21 per cent greater than on April 1, 1922. Nineteen of the largest mines in this district report an increase of 24.1 per cent in the number of men on their pay rolls now as compared with a year ago. Em ployment in the manufacturing industries of the four largest cities of the district, as indi cated by reports of the United States Depart ment of Labor, increased during March, 1923, compared with March, 1922, and February, 1923. Building Activity Building permits issued in 20 principal cities of this district during March, 1923, were greater both in number and in value than in any previous month of which there is record, exceeding by 9.0 per cent the number of per mits issued in the peak month of October, 1922, and by 36.6 per cent the value of permits granted in the record month of August, 1922. Comparisons with February, 1923, and March, 1922, show large increases in both number and value of building permits issued. Percentage Increase in Number and Value of Building Permits March 1923, compared with March. 1922 Feb. 1923 Number of Permits Issued......... 19.3 Value of Permits Issued............ 46.5 38.1 39.1 Segregated according to cities, the March, 1923, returns show an increase in the number of permits compared with March, 1922, in 14 of the 20 cities, while the value of construction involved was greater in 13 cities. In the year period March, 1922, to March, 1923, the United States Department of Labor index number of building materials prices in- FEDERAL RESERVE A G E N T A T S A N FRA NC ISCO creased 27.7 per cent. The value of construc tion involved having increased 46.5 per cent in the same period, it would seem that the total physical volume of building authorized during March, 1923, was greater than in March, 1922. Additional evidence of the increase in the phys ical volume of construction is found in the in crease of 19.3 per cent in number of permits issued during March, 1923, compared with one year ago. 61 value of building permits issued in Los A n geles bears to the total number and value of building permits issued in the 20 largest cities* of the district follow: Percentage of Twelfth District Building Activity Originating in Los Angeles Number Value March, 1923............................. 41.7 February, 1923............................. 42.4 January, 1923............................. 45.0 52.7 41.9 43.0 *Includes cities shown in table “ B .” Business Failures 40 Business failures in this district during the first quarter of 1923 were less in number and the amount of liabilities involved was smaller than in the first quarter of 1922. The figures follow : 36 32 28 24 First Quarter 1923 P E R N IT S IN OF DO LLARS 20 572 590 Number ............. Liabilities ........... $8,187,084 $13,253,647 16 12 8 M BER O F PERM T S IN THO JSANDS 4 0U First Quarter 1922 i __ l JU __ I__ uLt __ » - i l » 19 2 2 I »li i l 1 9 23 Building Permits Issued in 20 Principal Cities, Twelfth Federal Reserve District, 1922-1923 The marked increase in building activity re corded during March, 1923, and throughout the past year, has been due in a large measure to the volume of construction of all kinds under taken in the city of Los Angeles. Figures showing the percentage which the number and Percentage Decrease 1923 Compared With 1922 3.0 38.2 Similar declines in the number and import ance of business failures in the country as a whole have accompanied the increased busi ness and industrial activity of recent months. The national record for the first three months of 1923 as compared with the same period of 1922 shows a decrease of 29.2 per cent in the number of failures, and of 36.6 per cent in the amount of liabilities involved. LIABILITIES IN MILLIONS NO. OF FAILURES (B) Building Permits— March, 1923 Value No. March, 1922 No. Value 238 $ 703,095 45,895 83 211 520,668 517 1,974,618 5,556 21,196,087 2,581,989 1,014 34 90,600 350 1,001,770 66 585,843 2,761,220 1,316 21 83,875 347 728,688 90 380,356 500 1,409,013 3,229,672 977 139 280,605 1,052 1,362,985 242 221,205 159 533,720 446 511,536 195 $ 512,000 93 111,461 240 607,966 350 1,154,083 4,241 10,964,829 732 1,925,577 26 46,885 312 643,877 54 384,558 1,388 3,162,855 24 88,275 315 813,737 107 245,310 382 581,700 848 3,289,251 75 120,160 968 1,791,670 295 302,418 150 384,143 401 301,531 D istric t....... 13,358 $40,203,440 11,196 $27,432,286 Berkeley ..... Boise ......... Fresno ....... Long Beach... L o s Angeles... Oakland ...... Ogden ........ Pasadena ..... Phoenix ...... P o rtla n d ...... Reno .......... Sacramento ... Salt Lake City San Diego..... San Francisco. San Jose....... Seattle ........ Spokane ...... Stockton ..... T a c o m a ....... Business Failures, Twelfth Federal Reserve District, 1922-1923 Note: The increase in liabilities in February, 1923. was due to the failure of one concern in Salt Lake City. Utah. In this district the record for March shows a seasonal increase, as compared with Febru ary, in the number of failures and in the amount of their liabilities (excluding the liabil ities of one large failure in the state of Utah from the February figure). Compared with March, 1922, when 229 failures with liabilities of $5,272,387 were reported, there was a decline of 9.0 per cent in number and of 140.5 per cent in amount of liabilities involved. Liabilities of the average failure in the district were $10,441 in March, 1923, compared with $24,487 in Feb ruary, 1923, and $23,023 in March, 1922. 62 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S R. G. Dun & Company’s comparative figures of the number and liabilities of business fail ures in the states of this district follow : March, 1923 No. Liabilities 1 Arizona 14,943 701,689 127,426 4 42 9 51 m( 23 37 195,573 2,243,783 536,592 ,210 $2,192,789 156 $3,820,006 10 74 $ $1,022,092 153,386 15,100 404,773 45,427 552,011 94 Utah February, 1923 No. Liabilities 10 11 porting cities, the increases ranging from 4.1 per cent in Tacoma to 102.9 per cent in Long Beach. Compared with February, 1923, there was an increase in 19 cities. Savings Accounts The total amount in all savings accounts, as reported by 75 banks in seven principal cities, increased nine-tenths of 1 per cent during the month ending March 31, 1923, being on that M IL L IO N S OF D O L L A R S 1000 TOTAL Bank Debits The volume of business transacted in the dis trict during March, 1923, as measured by debits to individual accounts in the banks of 21 prin cipal clearing house centers, was 25.8 per cent greater than in March, 1922, and 12.7 per cent greater than in February, 1923. This latter inM1LLIONS OF DOLLARS 500 400 300 SA :s 200 100 280Q ¿600 50 40 30 2400 20 2200 10 SPOKANE T T T i , j T T ü j iJL. I. - L - l . l - L —I__ l - J . l - l . - l __ I__ L 19 2 2 2000 ieoo (C) Bank Debits*— Four weeks ending Mar. 29, 1923 , ..$ .. . xcrr: Debits to Individual Accounts in 20 Principal Cities, Twelfth Federal Reserve District, 1922-1923 crease is in part due to the larger number of business days in March, and in part to the in fluence of tax payments made during the first two weeks of March. The increase of 25.8 per cent in bank debits during March, 1923, com pared with March, 1922, is the largest reported for any month during the past year when com pared with the corresponding month of 1921 or 1922. A s noted in previous reviews, the in crease in debits to individual accounts during the past year has been greater than the in crease in commodity prices, an indication that present business transactions are greater in physical volume than they were one year ago. Bank debits during March, 1923, compared with March, 1922, were greater in 17 of the re- •1923 Savings Accounts in Banks in Seven Principal Cities of the Twelfth Federal Reserve District, 1922-1923 L o n g B each.......................... L os A n g ele s.......................... . . . Pasadena .............................. P o r t la n d ................................. . . . Sacramento .......................... Salt Lake C ity ..................... . . San D ie g o .............................. San Francisco...................... . .. .... . .. Stockton ............................... . . , . .. 16,057 10,914 45,563 56,335 668,447 121,055 26,370 33,616 17,287 132,835 8,161 31,895 55,063 44,887 799,321 19,785 160,505 45,411 20,824 36,789 9,084 . ,. .$2,360,204 *000 Omitted. Four weeks ending Mar .28.1922 $ 17,114 9,027 36,151 27,759 461,910 74,032 17,335 25,204 12,840 126,615 8,778 55,035 46,233 34,938 656,888 17,584 140,322 42,594 19,086 35,316 10,505 $1,875,266 FEDERAL RESERVE A G E N T A T S A N F R A N C ISCO date $885,590,000 compared with $877,113,000 on February 28, 1923. This is the ninth consec utive month during which there has been an increase in total savings deposits. Of the 75 reporting banks, 45 banks located in all sec tions of the district participated in the increase, particularly noteworthy gains being recorded in Salt Lake City and Spokane. A comparison of the amount of savings deposits in reporting banks on March 31, 1923, with the amount held on the same date in previous years shows an increase of 16.2 per cent over 1922, 21.3 per cent over 1921, 32.7 per cent over 1920, and 55.6 per cent over 1919. 63 deposits of these banks are likewise greater than they were at the 1920 peak, and by an amount proportionately greater than the in crease in total earning assets, so that total de posits, at $1,328,000,000, are now 99.1 per cent of total loans and investments compared with 88.2 per cent at the peak of credit expansion in 1920. City member banks, principally those in San Francisco, had further recourse to the Federal Reserve Bank for funds during March and the first week of April. Their total rediscounts and bills payable advanced from $28,000,000 to $35,M 1 L L I O N S OF D O L L A R S Banking and Credit Situation The increase in member bank loans which has proceeded steadily since February, 1922, was somewhat more pronounced during the past month. Loans and discounts of 66 report ing member banks in the principal cities of the district rose from $935,000,000 on March 7, 1923, to $971,000,000 on April 11, 1923, an in crease of $36,000,000 or 3.8 per cent. This inMILLIONS or DOLLARS 100 50 B IL L S P \Y A B L E A ND R E D Ii C O U N T S W IT H 1 , „1 F ED ERA L f E S ER V E ., t. ..1 ... i 1922 i BANK * J ___ 1___ — J___ L _ ___ ___ 1___ 1___ _ J ___ 1___ 1923 Total Deposits, Loans and Discounts, Investments, and Bills Payable and Rediscounts of Reporting Member Banks Total Reserves, Federal Reserve Note Circulation, Bills Discounted, and Investments, Federal Reserve Bank of San Francisco crease was greater than that which occurred in the two previous months combined, and was over one-half the total increase reported during the year 1922. Three-fourths of the increase in total loans and discounts was in the item “other loans, largely commercial” which ad vanced from $763,000,000 on March 7th to $790,000,000 on April 11th. Investments of re porting banks, although they declined slightly during the last week of the period, were in creased by $15,000,000 during the five weeks ending April 11th. Total loans, discounts, and investments at $1,340,000,000 on April 11, 1923, were $51,000,000 above the figure for March 7, 1923, and $9,000,000 above the figure reported on December 17,1920, the previous peak. Total 000,000, continuing the upward movement which has been noticeable since the beginning of January. Country bank borrowings were unchanged at approximately $18,000,000. Thus far the banks in the country districts have financed their customers during the spring planting season without increasing their bor rowings at the reserve bank. Federal Reserve Note circulation, which has declined steadily since the first of the year, fell from $202,000,000 on March 14th to $197,000,000 on April 18th. The latter figure is well below the average circulation during any of the past three years. Interest rates in the district have moved up ward, both on paper offered in the open mar ket, and on loans of member banks to their cus tomers. The rate charged on customers' prime commercial paper by the principal San Fran cisco banks is now S 1 / * to 6 per cent compared with a rate of 5 to 5 y 2 per cent one month ago. In the New York market prime commercial paper which bore a flat rate of 5 per cent a 54 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S month ago is now quoted at 5 - 5 per cent. Time money rates in that market have ad vanced from 5J4 Per cent to 5 % - 5 ¥2 per cent and rates on bankers’ acceptances from 4 to 4 % per cent. Increased commercial and industrial activ ity, and seasonal demands for credit in the country districts, where spring planting is now in progress, have reduced the amount of funds available for investment in acceptances, and the market in this district during the past month has not been active. Rates generally re mained steady at 4 per cent for prime bills until the second week of April, when dealers advanced the rate to 4J4 per cent on all but the best paper. Reports received by this bank from 35 of the principal accepting banks of the district show the following changes in the amount of bills purchased and accepted during March, 1923, compared with February, 1923, and March, 1922: March, 1923, compared with Mar.. 1922 Feb.. 1923 Amount of bills accepted .. +126.9% Amount of bills b ou gh t__ — 25.4% Amount of bills held at close of month.................... — 28.9% +45.5% — 28.6% — 20.0% The principal commodities upon which these acceptances were based were wheat, canned fruit, raisins, coffee, and silk. P R IN C IP A L R E S O U R C E A N D L I A B I L I T Y IT E M S O F R E P O R T IN G M E M B E R B A N K S IN R E S E R V E C IT IE S IN T W E L F T H F E D E R A L R E S E R V E D IS T R IC T April 11.1923 66* Number o f Reporting Bank» ............................................................................ Loans and Discounts (including rediscounts)...................... $ 970,893,000 Investments ................................................................ ■ 369,435,000 Cash in Vault and with Federal Reserve Bank.................... . 111,048,000 1,328,106,000 35,310,000 Bills Payable and Rediscounts with Federal Reserve Bank..... March 7.1923 April 12.1922 66* $ 934,714,000 354.213.000 117.415.000 1,271,271,000 27,849,000 68* $ 843,820,000 306.232.000 101.768.000 1,141,313,000 18,369,000 ♦Mergers have reduced the number of reporting banks, but comparisons of resource and liability items have not been affected. C O M P A R A T IV E S T A T E M E N T O F C O N D IT IO N O F F E D E R A L R E S E R V E B A N K O F S A N F R A N C IS C O A T C L O S E O F B U S IN E S S , A P R IL 18, 1923 RESO U RCES April 18.1923 March 14.1923 April 19, 1922 .$229,877,000 Bills Discounted............................................................ , 58,749,000 37,267,000 Bills Bought in Open Market............................................ United States Government Securities................................ ., . 27,617,000 $252,534,000 42.926.000 31.663.000 34.742.000 $269,644,000 43.810.000 5,593,000 57.009.000 $123,633,000 55,528,000 $109,331,000 58,719,000 $106,412,000 45,679,000 $409,038,000 $420,584,000 $421,735,000 Capital and Surplus......................................................... .$ 23,040,000 Total Deposits................. ........................................... , 148,996,000 Federal Reserve Notes in Actual Circulation...................... . . 196,796,000 All Other Liabilitiesf................................................. . . 40,206,000 $ 23,030,000 153.817.000 202.383.000 41,354,000 $ 22,596,000 143.194.000 216.458.000 39,487,000 . ,$409,038,000 $420,584,000 $421,735,000 ♦Includes “Uncollected Items”....................................... , . 42,350,000 flncludes “Deferred Availability Items”............................. ■ 38,743,000 42.577.000 40.176.000 39.087.000 33.698.000 , Total Earning Assets.................................................... A ll Other Resources*.................................................... T o t a l R e s o u r c e s .................................................................................................... L IA B IL IT IE S T o t a l L ia b ilitie s .................................................................................................. Those desiring this review sent them regularly will receive it without charge upon application.
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