Full text of Economic Review (Federal Reserve Bank of San Francisco) : April 17, 1922

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A g r ic u lt u r a l

and

B u sin ess C o n d itio n s

IN T H E 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

M o n th ly R e p o rt to the F ederal R eserv e B oa rd
by
JOHN PERRIN, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco

Vol. VI

San Francisco, California, April 17, 1922

E banking situation in this district con
T Htinues
to improve. Borrowings from the
Federal Reserve Bank of both city and
country member banks combined fell from
$61,106,000 on March 8th, to $49,025,000 on
April 12th, a decline of $12,081,000, or 19.7 per
cent. This reduction was accomplished, at least
in the case of the country memThe Month ber banks, at a season of the year
when the requirements of their
customers are usually heavy, and indicates a
grow ing ability on the part of these banks to
meet customers’ needs without securing out
side assistance.
The most striking industrial development in
recent weeks is the record activity in building
operations. Figures of building permits for
March were, in point of value, the largest fig
ures ever reported in this district, exceeding
the previous record month of October, 1921,
by 17.5 per cent. Compared with the month of
March a year ago, this year’s figures exhibit
an increase of 47.9 per cent in value and 14.7
per cent in number, indicating a period of un
usual activity in construction lines during the
summer and fall.
A m ong other industries of the district
lumbering is most active. Production during
March was approximately 90 per cent of nor
mal, the highest percentage reported by this
industry in the past 16 months. New orders
received by mills in the four principal lumber
associations were 22.4 per cent greater than
March production. Five more of the largest
copper mines in the district have announced
the resumption of operations and on April 1st
11 of the 15 principal mines which closed down
one year ago were again working their prop
erties, although on a greatly curtailed scale.
Sales of electric power for industrial purposes
in February continued on the same high level

as in January, primarily reflecting the activity
in lumbering and mining industries.
Agriculturally there have been few new de
velopments during the month. In many sec
tions the winter season extended well into
March and farm work has been delayed from
two to three weeks. The winter wheat crop
now appears to be in better condition than on
December 1st, but it is not expected that the
record crop of last year (78,000,000 bushels)
will be equaled. The present outlook for the
deciduous fruit crops of the district is excel
lent, with the exception of apricots, the yield of
which has been reduced as much as 60 per cent
in some sections by attacks of brown rot and
killing frosts. Preliminary estimates of cotton
and sugar beet plantings indicate a slight in
crease in acreage of cotton in the principal
grow ing sections and a reduction of approxi
mately 25 per cent in the acreage of sugar
beets, compared with last year. Prices of agri
cultural products, while they have not contin
ued the steady gains which characterized their
movement in the first two months of the year,
have fluctuated at levels appreciably higher
than those of January 1st.
An increased demand for unskilled laborers,
partly seasonal and partly due to greater pro
ductive activity in the district, has increased
the number of men employed and all states
report that the peak of unemployment has
apparently been passed.
Trade at retail during the month was 6.2 per
cent less in value than in March, 1921, but the
comparison loses much of its significance when
it is remembered that Easter buying occurred
in March last year and will be largely reflected
in April sales this year. After making due
allowance for declines in retail prices of from
5 to 10 per cent over the year period it is prob
able that the physical volume of business in

Those desiring this report sent them regularly will receive it without charge upon application

No. 4

Agricultural and Business Conditions

March, 1922, was at least equal to that in
March, 1921. A t wholesale, trade in general
was dull, and did not compare favorably with
1921 figures either in value or in physical vol
ume of sales.
Debits to individual accounts in 20 principal
clearing house centers were only 6 per cent less
than in March, 1921. This is approximately the
same percentage of decline as in the wholesale
and retail price indices during the year period,
and if allowance be made for a smaller amount
of income tax payments in March, 1922, than
in March, 1921, it would appear that the vol
ume of business represented by these debits
was greater in 1922 than in 1921. Business
failures in March were greater in number and,
with the exception of January of this year,
greater in the amount of liabilities than in any
other month during the present readjustment
period.
Although the winter season of 1921-1922 has
been characterized by unusually low tempera
tures and long continued cold weather, the
April 1st report of the United States
Grains Department of Agriculture shows an
improvement in the condition of fall
sown wheat in all states of the district except
Oregon. In the latter state grain crops have
been damaged by alternate freezing and thaw
ing during the late winter and spring. Until
recently a uniform snow cover protected
the wheat fields of W ashington, Idaho and
Utah, and its gradual dispersion has insured
favorable moisture conditions for the coming
crop. In California, where growth has been
retarded by cold weather and an over-abun
dance of moisture, grains have shown rapid im
provement during the first two weeks of April.
Sowing of barley in that state has been de
layed, but it is estimated that total plantings
will be approximately equal to those of last
year (1,188,000 acres).
Comparison of the condition of winter wheat
on April 1, 1922, and December 1, 1921, with
the same dates a year ago, as reported by the
United States Department of Agriculture, fol
low :
Condition April 1st
10 year
1922
1921 average

Arizona
,
California ..
Idaho ..........
Nevada ......
Oregon .......
Utah ........... ,
Washington ..

95
94
92
88
90
89
85

Total U. S.. . 78.4

80
93
97
93
99
97
100
91.0

Condition December 1st
10 year
1921
1920 average

95
90
81
85
92
80
79

93
95
95
90
97
97
97

95
90
92
91
93
92
89

843

76.0

87.9

89.0

89
95
95

Comparatively light stocks of the 1921 crop
of wheat held in the Pacific Northwest were
further reduced by moderate export movement
during March. Commercial factors estimate
that the surplus of wheat available for export
from this section during the remaining three
months of the cereal year, is approximately
12,000,000 bushels, or 11.3 per cent of the last
crop. Shipments of wheat by water from North
western ports during this season to date (July
1, 1921, to April 1, 1922) show a 60 per cent
increase over shipments during the correspond
ing period last season and were as follows
(flour included at wheat content) :
July 1, 1921 to
April 1, 1922
(bushels)

July 1, 1920 to
April 1, 1921
(bushels)

Percentage
Increase
1921-1922
over
1920-1921

Portland . . . . . 36,946,513
Puget Sound ...18,571,372

21,466,976
12,854,738

72
46

. . . ,55,517,885

34,321,714

EXPORTS*

* Includes some domestic shipments by water.

Export demand for California barley, which
was light during the winter months, improved
during March. Exports of barley from this
port during the present season, as compared
with a year ago, fo llo w :
Percentag
EXPORTS

July 1, 1921 to
April 1, 1922
(centals)*

San Francisco .. .6,249,994

(cen tals)*

Increase
1921-1922
over
1920-1921

3,716,741

July 1,1920 to
April 1, 1921

*One cental (of barley) approximates two bushels.

After a short reaction during the latter part
of March, wheat prices in the Pacific Coast
markets rose to former levels ($1.35 to $1.41
per bushel on the San Francisco market on
April 15th) and are generally firm, due to a
scarcity of desirable grades of milling wheat.
In response to increased export demand, the
price of shipping barley in the San Francisco
market advanced 5 cents per 100 pounds dur
ing March, and is now (April 15th) quoted
at $1.45 to $1.60 per 100 pounds, as compared
with $1.20 to $1.25 per 100 pounds one year
ago.
California millers continued to increase their
output of flour in March, while production
was further curtailed in the Pacific Northwest.
As a result the average production
Milling of 61 reporting mills remained un
changed from the previous month at
approximately 50 per cent of capacity, com
pared with 45 per cent of capacity during
March, 1921 (see table “ A ” on opposite page).
California mills increased their percentage of
capacity in operation from 57.2 in February,
1922, to 69.2 in March, 1922.

Federal Reserve Bank of San Francisco

A majority of millers report decreased sales
during March, due to uncertainty in buyers’
minds regarding the trend of flour prices. The
present flour market is reported to lack the
strength of and to be below the market for
wheat, a contrast which is more marked locally
because of the strength imparted to the wheat
market by a scarcity of desirable milling
wheat.

It is reported that approximately 41 per cent
of the California Navel orange crop remained
to be shipped on March 1st. Stimulated by
high prices and strong demand, growers
shipped the majority of this supply during
March, and at the present time only a small
percentage of this fruit remains to be moved.
Total shipments of oranges (principally Nav
els) and lemons from California during the
period from November 1, 1921, to April 3,
1922, and during the corresponding period a
year ago follow s:
Nov. 1, 1921 to
April 3,1922

Nov. 1, 1920 to
April 3, 1921

(cars)

Oranges ............................. 15,254
L e m o n s ............................... 3,159

Monthly Flour Output, and Stocks of Wheat and Flour at End of Month,
of 16 Reporting Milling Companies

The trend of milling activity in the district,
as indicated by the reports of 16 large milling
companies, is shown in the accompanying
chart. Stocks of wheat held by these com
panies decreased during March, while total
output and stocks of flour increased.
Gradual movement of remaining stocks of
apples from common storage in the Pacific
Northwest was reported during the past
month, approximately 1,000 cars havFruits ing been shipped to distributing cen
ters. Total carlot shipments of apples
from this district up to April 1st this season,
were 49,045 cars, as compared with 30,673 cars
shipped by the same date last season. Ship
pers anticipated strengthening markets and
rising prices in the months of March and April
for remaining stocks of common and cold stor
age apples, but consumer demand is reported
to have remained weak and price advances did
not materialize.

19,113
3,120

Exchange growers are reported to have re
ceived an average price of $4.54 per box (f.o.b.
shipping point) for oranges marketed dur
ing March, 1922 as compared with $2.23 per
box during March, 1921. The average price
of lemons shipped during this month was $3.76
per box, as compared with $2.01 per box one
year ago.
Although it is too early in the season to esti
mate accurately the forthcoming yield of the
several deciduous fruit crops of the district,
reports from all of the principal growing sec
tions indicate that the outlook is favorable
and a large crop of most varieties of fruit is
expected. Heavy rains at frequent intervals
have given promise of an adequate supply of
soil and surface moisture during the growing
season and the backward spring has delayed
budding and bloom ing so that the danger from
killing frosts is greatly reduced. In California,
large yields of all of the principal fruits except
apricots are forecasted. The size of the apri
cot crop has been doubtful since early in the
season, due to an infestation of apricot brown
rot in the coast growing sections, and the
crop was further reduced by killing frosts
early in April (the crop in the Santa Clara
Valley and adjacent territory is now estimated
at 40 per cent of a normal crop).

Per Cent Mill Capacity
No. Mills Reporting
Mar.. 1922 Feb., 1922

California .....................
Idaho .............................
Oregon .........................
Washington ................

-Output—
Mar., 1922
Feb., 1922

(barrels)

Mar.,
1922

Feb.,
1922

Mar.,
1921

...................
...................
...................
...................

10
3
21
27

10
3
22
29

303,859
9,640
102,989
300,734

233,570
6,648
150,497
354,935

69.2
43.4
38.8
45.6

57.2
34.6
43.5
50.4

45
37
41
57

District ......................... ...................

707,202

795,650

50.1

50.4

Agricultural and Business Conditions

Cotton planting is proceeding rapidly and
reports indicate a substantial increase in acre
age in the principal grow ing sections (Salt
River and Imperial Valleys) as comCotton pared with last season. In less fav
ored sections, discouraging results of
the operations during the past two years have
caused many farmers to plant other crops, and
there will be little (if any) increase over last
year in the total cotton acreage of the district.
Estimated plantings this year and last year
are shown in the following table:
Unofficial
Estimates of
Acreage, 1922
(acres)

U .S .D . A . Estimates of
Cotton Acreage and
Production, 1921 Season
(acres)
(bales)

Arizona ................ , 105,000
California ............
75,000
Lower California* .. 175,000

90,000
95,000
45,000

43,926
34,809
24,000

Twelfth D istrict... . 180,000

185,000

77,735

* N o t in c lu d e d in total f o r T w e lft h D istrict.

It is reported that approximately 85,000 acres
of Pima (long staple) cotton will be planted
in Arizona this season, as compared with 65,000 acres planted in 1921. Very little Pima
cotton will be grown outside of the Salt River
Valley, as other sections have found shorter
stapled varieties more profitable under present
conditions. Increased acreage of short staple
cotton is reported from the Imperial Valley,
chiefly from the section below the Mexican
line, in Low er California.
Marketing of the 1921 crop of Pima (long
staple) cotton (and the heavy carry-over of the
C E N T S PER P O U N D
130

C E N T S PER PO U N D
130

120

120
\

110

/
/

110
\

100
\

90
\

VV -

AO
30

50
40

30
20

20
10
0

10
1

2 | 3 | 4 - | S . 1 6 1 7 18
1920

9 1 10 1 II 112 1 1 1 2 13
1

7It 3 !9 1 10 ! II

5 161
1921

1 121 3 |
1922

Weekly Price Quotations on No. 2 Grade Pima Cotton (lir to If inches
Staple Length) F. O. B. New England Mill Points

1920 crop) has been slow and is still far from
complete. W ith the exception of a brief period
of activity in September, when prices of No. 2
grade Pima cotton rose to 46 cents per pound
in the New England markets, quotations for
this representative grade have averaged
around 35 cents per pound, as shown by the
accompanying chart. Recent bids on this
grade to growers in Arizona are reported to

have averaged approximately 30 cents per
pound. It is reported that on March 1st there
remained in the hands of growers (in the Salt
River Valley) 28,716 bales of the 1920 crop
of Pima cotton, and 14,283 bales of the 1921
crop, or a total carry-over of 42,999 bales. On
April 1st the total amount held by growers
was reported to approximate 40,000 bales.
Movement of short staple cotton has been
fairly satisfactory, and it is estimated that
between 80 and 85 per cent of the 1921 crop
has been sold. Growers are reported to have
obtained an average of 15 to 16 cents per
pound for the majority of their short staple
cotton this season (1921-1922) compared with
9 to 10 cents received during the previous
cotton year.
Contracts between sugar beet factories and
growers are now being made and the new crop
is being planted.
Complete information as
to the terms of the contracts and as to
Sugar the acreage of the new plantings is not
Beets yet available. It is reported that the
two principal sugar companies in
Idaho and Utah have agreed to guarantee to
growers minimum prices of $5.50 per ton of
beets in Idaho and $5.00 per ton in Utah, com
pared with guaranteed minimum prices of
$6.00 and $5.50 last year. It is reported that
in California the same contracts as were in
force last year are now being entered into.
These contracts provide for payments on a
sliding scale according to the sugar content
of the beets and the average prices received
by the factories for refined sugar. Early esti
mates place the prospective acreage in the
three principal beet-growing states of the dis
trict at about 25 per cent less than the 1921
acreage.
The chief interest of growers as well as
factories throughout the district this year will
be the price of refined sugar. This price has
averaged so low during the recent months, in
comparison with 1921 costs of production, that
both factories and growers are said to have
had an unprofitable year. In each case costs of
production in 1922 will be lower than in 1921,
but the future course of refined sugar prices is
uncertain. The recent trend of sugar prices
has been upward. Refined beet sugar, f. o. b.
San Francisco, after a continuous decline from
a price of 26.10 cents per pound established
on June 1, 1920, to 5 cents per pound estab
lished on December 30, 1921, has gradually ad
vanced to the present price of 5.70 cents per
pound. The principal cause of the recent
strengthening of prices is reported to be the

J. CU/CtU/1/ilCOP /

l/p

JLJU/ri/iv W! UU'ÍI' J. / im<v»on/

considerable inroads into stocks of raw sugar
in Cuba. Though raw sugar from Cuba is
subjected to an import duty of 1.60 cents per
pound, stocks in that country are in reality
part of United States domestic stocks. Euro
pean countries, where stocks are subnormal,
have been purchasing unusually large quanti
ties of Cuban sugar recently, and the size of
the Cuban holdover, which has been the chief
factor in depressing the United States market,
has been reduced accordingly.
Until the middle of April winter weather
prevailed over a large area in the range live
stock sections, prolonging the feeding season
beyond its normal limits, and in
Livestock some cases causing considerable
hardship to stock.
In general,
however, livestock are reported to be in
normal condition, although serious losses due
to extremely cold weather have occurred in
local areas in Idaho, Nevada and Utah. Range
conditions in California and Arizona have im
proved rapidly during the past month, but re
ports indicate that shipments of grass fattened
cattle will be from two to three weeks later
than usual in reaching the market.
Sheep are reported to have withstood the long
winter better than cattle, but there has been
a high mortality among early lambs in some
sections, due to rigorous weather conditions.

Spring lambing is practically finished in Cali
fornia (the increase is estimated as slightly
below normal) and is now in progress in the
more northern states. Shearing of sheep has
been in progress for some time in Arizona, but

Receipts of Livestock at Eight of the Principal Markets of the District
1921-1922. (Los Angeles, Ogden, Portland, Salt Lake City, San
Francisco, Seattle, Spokane and Tacoma included)

cold weather has retarded the work both there
and in all other states of the district.
Preliminary reports of the United States
Department of Agriculture indicate that the

( B ) R e c e ip t s o f L iv e s t o c k —
Cattle
March,
March,
1922
1921

Calves
March,
March,
1921
1922

Hogs
March,
March,
1922
1921

Sheep
March,
March,
1922
1921

Los A ngeles. . , .18,561
Ogden ...............
4,431
Portland ...........
9,604
Salt Lake C ity..,. 7,006
San Francisco.....17,435
Seattle ..............
3,136
Spokane ............
2,706
T a c o m a .............. 1,903

16,112
5,819
8,467
5,955
16,713
4,415
2,403
1,959

7,173
153
601
218
2,938
179
139
62

6,154
48
571
64
3,594
135
65
2

36,318
13,398
18,754
5,985
31,485
17,515
3,528
4,682

28,307
14,586
18,927
3,711
28,944
16,876
2,738
5,124

47,512
17,317
11,233
14,147
71,680
7,222
177
970

41,003
31,113
17,045
26,875
74,172
2,992
638
2,094

Twelfth District. .64,782

61,843

11,463

10,633

131,665

119,213

170,258

195,932

Horses
and Mules
March, March,
1921
1922

67
80

82
20

30
194

30
77

371

209

( C ) R a n g e i n L iv e s t o c k P r i c e s —
Highest and Lowest Average Top Prices Per Hundredweight Received at Above Markets During March.
Week of

Fat SteersCows

Calves

March 6 .................. $6.50— 7.75
$5.25—6.25
$6.50— 10.00
March 13.................. 6.50— 8.005.25— 6.50
6.50— 10.00
March 20.................. 6.40— 8.025.25— 6.50
7.00— 12.00
March 27.................. 6.60— 9.365.00—6.50
6.50— 12.00

Hogs

$10.55— 12.50
10.55— 13.00
9.80— 11.75
9.50— 12.00

Lambs

$8.50— 12.25
8.50— 14.50
8.50— 14.50
8.50— 14.50

5«

Agricultural and Business Conditions

number of brood sows in this district has
changed but little during the past year, the
number on farms April 1st being reported as
188,940, compared with 187,400 on the same
date a year ago. The figures are chiefly sig
nificant in that they show a decline in the
number of brood sows in W ashington and
Oregon, which is contrary to the trend in the
other states of the district and in the country
as a whole. The figures by states follow :
/------- April 1, 1922--------x
Per Cent of
Preceding Year
Number

Arizona ............... 100
California ............101
Idaho ................... 108
Nevada ................110
Oregon ............... 98
Utah ................... 110
Washington . . . . 96
Twelfth D istrict.. 100.08
United States.. . . 111.1

Estimated Number
April 1, 1921

5,400
86,860
17,280
4,400
34,300
12,100
28,800

5,400
86,000
16,000
4,000
35,000
11,000
30,000

188,940
12,424,000

187,400
8,786,000

Favorable prices for cattle and sheep during
March had a tendency to draw forth all mar
ketable stock, and receipts of these animals
at eight principal markets of the district (see
accom panying chart and table “ B,” on preced
ing page) show an increase over February.
H ogs declined in price near the middle of
March and show a corresponding decrease in
receipts as compared with February. Receipts
of cattle and hogs were larger, and of sheep
smaller, during March, 1922, than during
March, 1921.
Reports indicate that fat cattle will be late
and scarce in this district, and prices of steers,
cows and calves have strengthened accord
ingly. During March early lamb prices rose
to new high levels for the season (approxi
mately $14.50 per hundredweight in the Port
land market). W eekly average top prices for
livestock at eight principal markets of the dis
trict during March are shown in table “ C” (see
preceding page).
Anticipating the spring and summer m ove
ment of new butter into cold storage, holdings
in the principal markets of this district have
been reduced to the lowest point of
Dairy
the 1921-1922 season. Net withProducts drawals of butter from storage dur
ing March, 1922, amounted to 134,187 pounds, as compared with 292,117 pounds
in March, 1921, and cold storage holdings of
butter on April 1st (see table “ D ” ) had been
reduced to 134,187 pounds. On April 1, 1921
(the lowest point last season) holdings were
405,356 pounds.

Increased production caused an abrupt drop
in butter prices early in March, and prices
continued slowly downward during the latter
part of the month, but contrary to expecta
tions, prices strengthened during the first two

1911 1912 1913 1914 1915 1916 1917 1918 1919 1924 1921
United States Production and Exports of Canned Milk by Years
1911-1921

(D ) M o v e m e n t o f Sto ck s o f C o ld S to ra g e
B u tte r—

City

Los A ngeles.. .
Portland ....... .
San Francisco. .

Mar., 1922
Mar., 1921
Net
Net
Withdrawals Withdrawals
(pounds)
(pounds)

April 1,
1922
Holdings
(pounds)

April 1,
1921
Holdings
(pounds)

75,568
3,729
24,379
30,511

36,968*
79,550
143,896
105,639

72,723
710
37,821
798

124,065
42,899
213,496
24,896

134,187

292,117

112,052

405,356

*Net addition.

( E ) P r i c e s R e c e i v e d b y M i l k P r o d u c e r s *—
Sectionf

Mar.,
1922
Range

Mar.,
1922
Average

Feb., Mar.
1922 1921,
Aver- Aver
age age •

Mountain (6 M k t s .)....$1.40-2.80 $2.01 $2.05 $2.47
Pacific (11 M k ts.)........ 1.64-3.39
2.51
2.51
2.99
U. S. (95 M k ts.)........... 1.22-6.09
2.26
2.38
2.62
*A11 prices per hundredweight for milk testing 3.5 per cent butter
fat.
tM ountain Section includes Idaho, U tah, Nevada and Arizona.
Pacific Section includes W ashington, Oregon, and California.

Federal Reserve Bank of San Francisco
weeks of April. Fresh creamery butter (93
score) which sold in the local market on
March 15th at 35y2 cents per pound, is now
(April 13th) quoted at 3 3 y cents per pound.
Prices received for raw milk by producers
in this district during March as compared with
the previous month (table “ E,” see opposite
page) declined 4 cents per 100 pounds in the
Mountain section, and remained unchanged in
the Pacific section, and were $0.46 and $0.58
less in the Mountain and Pacific sections re
spectively than in February a year ago.
W ith the season of increased milk produc
tion at hand, manufacturers of evaporated milk
in this district are reported to be faced with
the necessity of keeping output at a minimum
to avoid accumulating stocks. Profitable pro
duction of evaporated (and condensed) milk
is also reported to be hampered by the con
tinuation of relatively high costs of raw milk,
due to well maintained prices of butter and
cheese, while wholesale prices of canned milk
have been cut vigorously in attempts to dis
pose of accumulated stocks.

In 1919, the peak year of production and ex
ports of canned milk, the output of the con
densates in the states of W ashington, Cali
fornia, Oregon and Utah (in order of produc
tive importance) was 241,048,267 pounds of
evaporated milk, or 20 per cent of the total
evaporated milk produced in the United States.
During the past two years this district has
produced approximately the same proportion
of the total output of evaporated milk in this
country.
As shown in the chart on preceding page, the
general position of the canned milk industry
has been unfavorable during the past two
years. A mushroom growth of exports during
the war period stimulated production of canned
milk to a point apparently beyond present or
dinary consumption of the product. Since
1919, resumption of competitive production in
foreign countries and exchange rates unfav
orable for foreign purchasers of United States
products, have caused exports from the United
States to dwindle rapidly. Large unsold
stocks have consequently accumulated. These

(F ) C o m m o d i t y P r i c e s —
Commodity

Twenty Basic Commodities (F. R. B. of N. Y .) 1913=100.
Wholesale Prices (U. S. Bureau of Labor) 1913=100........
Cost of Living (National Industrial Conference Board)
July, 1914=100.........................................................................
Cattle (Native B e e f).. .W eekly average price at C h ica go..
Sheep ............. ............... W eekly average price at C hicago..
Lambs ...........................Weekly average price at C hicago..
H ogs ..............................Weekly average price at C hicago..
Wheat . ................Chicago contract prices for May w h ea t..
B a r le y ................. Shipping Barley F. O. B. San Francisco..
Rice ..................... California Fancy Japan at San Francisco.
Cotton ................ Middling Uplands— W eekly range of spot
I quotations at New Orleans...................
W o o l ................... Average of 98 quotations at B oston .........
Sugar .................. Beet granulated F. O. B. San F ran cisco..
Apples ............... N. W . Winesaps at New Y o rk ..................
Oranges ..............Navels— Market pack at Los A ngeles___
Lemons .............. Loose pack at Los A ngeles........................
Dried A pples. . . . Choice in 50-lb. boxes F. O. B. California
Dried A pricots...C hoice in 25-lb. boxes F. O. B. California
Prunes ................ Size 40-50 in 25-lb. boxes F. O. B. C alif...
Raisins ............... L oose Muscatel, in 25-lb. boxes F. O. B.
California ..................................................
Canned Apricots.Choice 2 ^ s F. O. B. California.................
Canned Peaches.. Cling choice, 2 ^ s , F. O. B. C alifornia...
Canned P e a rs.... Bartlett, Standard 2 ^ s, F. O. B. Calif___
Butter ..................93 score at San Francisco............................
Eggs ................... Extras— San Francisco................................
Copper ................Electrolytic, New York S pot....................
Lead ................... New Y ork S p ot.............................................
Petroleum ..........California, 35° and a b o v e ...........................
Douglas F ir.........2x4, 16-ft. No. 1 S1S1E F. O. B. Seattle..
Douglas F ir........12x12 Timbers F. O. B. Seattle...................
*Figure for March, 1922.

Unit

1, 1922
126.7
152*

April

One Month Ago

One Year Ago

132
151

135.2
162

100 lbs.
100 lbs.
100 lbs.
100 lbs.
bushel
cental
cental

154.7*
$ 7.75
9.50
14.00
10.05
1.35-1.32^2
1.40-1.55
4.92^

168.7
$8.70
6.25
9.05
9.30
1 1 .0 0
1.48-1.44# 1.3634-1.34^
1.35-1.50
1.30 -1.40
4.90
4.50

lb.
lb.
lb.
box
box
box
lb.
lb.
lb.

16.630
60.03$
5.700
2.25-4.25
4.00-5.00
2.25-2.50
.17
.26
.14- .u y 2

17.000
59.720
5.400
3.75-4.25
2.50-3.50
3.00-3.50
.17- .174
.26
.14J4

lb.
doz.
doz.
doz.
lb.
doz.
lb.
lb.
bbl.
M feet
M feet

.15?«*
3.00
2.60
3.00
.31J4
■2614

.1234
4.80*
2.45
11.50
15.00

157.7
$ 8.05
7.90
14.75

.153^0
3.00
2.60
3.00
.32#
.26^
.1 2 # - .13
4.700-4.800
2.45
13.50
14.00

11.500
40.040
8.400
3.00-3.50
1.25-2.25
.07- .074
.18- .19
.0 9 ^ - .09#
.243^
2.10
2.70
2.75
.37
.25
.12#
4.350
2.95
13.50
21.00

Agricultural and Business Conditions

stocks were slowly reduced during the latter
part of 1921, the principal export movement
being evaporated milk bought for relief pur
poses, and at the present time the canned milk
industry is reported to be in a slightly better
statistical position than it was a year ago.
Prices of the principal farm products of the
district paused in their upward movement
during March and, numerically, gains and
losses were evenly distributed. In no
Prices case, however, did the decline in prices
during March approximate the gain
in price recorded during the first two months
of 1922.
Livestock prices on the Chicago market,
sheep prices excepted, were generally lower,
the price o f cattle reaching the lowest point in
the past six weeks. The local cattle markets
did not follow the Chicago market as closely as
usual, largely due to the shortage of stock here
available for slaughter, and prices were from
cent to one cent higher at the close of the
month than they were at its beginning.
W heat prices fluctuated during the month
but the trend was steadily toward lower lev
els. Some resistance to this movement was
noted in Pacific Coast markets, due to a scar
city of desirable milling wheat. The price of
barley moved upward under the influence of a
persistent domestic and foreign demand. W ool
prices were unchanged during the month and
cotton prices declined. Rice and beet sugar
advanced in price. Quotations on the fruits,
fresh, canned and dried, remained the same as
at the close of February, with the exception
of a marked rise in the price of oranges, of
which there is a short crop, and a decline in
the price of Pacific Northwestern boxed apples.
The same uncertain price tendencies appar
ent among farm products were noted in the
non-agricultural group of commodities. Some
commodities advanced in price, some declined,
and some remained at the same level through
out the month. Changes in the prices of some

(G) Lumber—
Average No. of
Mills reporting.
Cut* .....................
Shipments* .........
Orders* ................
Unfilled Orders*.
*In thousands of feet.

W est C oast
L u m b e r m e n 's
A s s o c ia tio n

March,
1922

. 102
275,481
253,269
279,429
.242,901

March,
1921

102
165,009
165,801
184,486
157,765

W e s te rn P in e
M a n u fa c tu re rs '
A s s o c ia tio n

of the principal products of the district during
the past month and the past year are shown in
table “ F ” (see preceding page).
The lumber industry is now more active
than at any time since the boom period in the
spring of 1920. The improvement in the volume
of production, new orders and shipLumber ments noted in the first two months
of this year continued at an acceler
ated pace during March, stimulated alike by
the seasonal demand for lumber products to be
used in outdoor construction, and by the im
proved conditions now prevailing in many sec
tions of the country. March production of lum
ber, as reported by 168 mills in the four lumber
associations in this district, was 381,572,000
feet, an increase of 49,457,000 feet, or 14.8 per
cent, over February and of 144,497,000 feet, or
60.9 per cent, over March, 1921. Present pro
duction is approximately 90 per cent of normal.
Orders received by the same mills were 68.0
per cent greater than one year ago and 33.3
per cent greater than one month ago, totaling
467.346.000 feet in March, 1922, compared with
278.017.000 feet in March, 1921, and 350,415,000
feet in February, 1922. The volume of orders
received was 22.4 per cent greater than the
actual production during the month, 11.2 per
cent in excess of shipments, and represented
the largest amount of new business booked in

Lumber Production, Orders Received, and Shipments in Twelfth
Federal Reserve District as Reported by Four Lumber
Associations, 1921-1922

C a lif o r n ia W h ite
a n d S u g a r P in e
M a n u fa c tu re rs '
A s s t > c ia t io n

C a lif o r n ia
Redw ood
A s s o c ia tio n

TO TAL

March,
1922

March,
1921

March,
1922

March,
1921

March,
1922

March,
1921

March,
1922

M arch,
1921

43
63,700
110,754
128,725
87,425

37
34,279
55,468
63,200
40,000

9
6,706
23,595
23,711

7
8,759
7,239
7,490

14
35,685
32,490
35,481
48,014

11
29,028
19,969
22,841
32,423

168
381,572
420,108
467,346
378,340

157
237,075
248,477
278,017
230,188

Federal Reserve Bank of San Francisco

any one month since March, 1920. Shipments
made during the month totaled 420,108,000
feet compared with 347,660,000 feet in Febru
ary and 248,477,000 feet in March a year ago.
In the three associations for which figures are
available, unfilled orders amounted to 378,340,000 feet compared with 354,570,000 feet on
February 28th and 230,188,000 feet on March
31, 1921.
The domestic market was most active dur
ing the month, the movement to local and
Eastern consuming centers, particularly to the
agricultural sections of the Middle W est, in
creasing noticeably from week to week.
Higher price levels of many varieties and
grades of lumber have accompanied the return
of the industry toward normal levels of pro
duction $nd consumption.
Prices (f. o. b.
mills) of representative items of Douglas fir,
California redwood and sugar pine as of April
1, 1922, February 25, 1922, and April 2, 1921,
are shown in the follow ing table
Douglas Fir (f.o.b. mills)
Apr. 1,
1922
No. 2 grade and better F. G.
Finish 1x8-10, 6 to 16 fe e t ... $51.00

Feb. 25,
1922

A pr. 2,
1921

$49.50

$46.00

No. 2 grade and better F. G.
ceiling f£x4, 10 to 16 fe e t .. . . 28.00

26.27

22.00

No. 2 grade and better Drop
Siding 1x6, 10 to 16 feet........ 30.00

28.00

25.00

No. 1 Common Timber 12x
12x32 and under...................... 15.00

14.00

21.00

Redwood (f.o.b. mills) Clears
1x5, 14 to 20 feet..................... 80.00

80.00

85.00

Rustic 1x4, 14 to 20 feet.......... 80.00

80.00

90.00

Sugar Pine (f.o.b. mills) No. 1
and 2 clear, 4x4....................... 155.00

160.00

152.50

64.80

66.00

57.50

No. 1 Shop, 5 and 6x4...............

The logging industry of the Pacific North
west is keeping pace with the mill industry,
and the supply of fir logs was at all times
sufficient to meet the current needs of the
saw mills. There was no surplus of logs, al
though log production was greatly increased
due to the fact that several large logging
camps that were previously prevented from
operating by climatic conditions are now
bringing out logs.
The export demand for Douglas fir de
creased during March com pared‘ with Febru
ary, due to a decline of Japanese buying. The
Douglas Fir Exploitation and Export Com
pany, which controls a majority of the foreign
business done in Douglas fir, received new
orders totaling 31,484,000 feet in March com
pared with 37,861,000 feet in February and

28,170,000 feet in March a year ago. Sales of
California redwood to Australian buyers by
the Redwood Export Company, totaled 10,496,161 feet in the first quarter of 1922. This
represents an increase of 400,000 feet over the
amount sold to Australia during the entire
year 1921. The foreign business outlook im
proved during the first two weeks of April.
Comparative figures of the cut, orders, ship
ments and unfilled orders of reporting mills of
the four lumber associations in this district
are shown in table “ G” (see opposite page).
Interest in the mining industry has recently
centered around the resumption of ore pro
duction by the principal copper mines of the
district. O f the 15 large mines here
Mining which have been inoperative since
April 1, 1921, all but four have an
nounced the resumption of work on their
properties. The Old Dominion and Verde E x
tension mines in Arizona were added to the
list during the latter part of March and the
Utah, Ray, and Nevada Consolidated Com
panies (members of the so-called porphyry
group) began preliminary operations on the
first of April.
Copper production in the United States dur
ing February was 30 per cent of normal, com
pared with 21 per cent of normal during Jan
uary. The principal mines of Montana were
reopened in January and the largest operator
in Michigan resumed operations on April 1st.
The general resumption of operations is be
lieved to be due to the expectation of the pro
ducers that before the copper in newly mined
ores will reach the market in large quantities
as refined metal, present stocks will have been
reduced to approximately normal proportions.
Producers state that output will be limited by
the needs of the market. Consumers have
taken the position that increased output may
so add to available supplies that prices may
decline further, and they have been purchas
ing only for immediate requirements. Sales
in March were the largest since November,
but the price of electrolytic copper delivered in
New York is now (April 17th) 12% cents per
pound, compared with 14 cents per pound in
December, the highest price in recent months,
and 14.11 cents per pound, the average pre-war
price.
Reports received by this bank from 19 mines
in the district engaged in the production of
gold, silver, lead and copper, indicate a small
decrease in the output of these metals in Feb
ruary, 1922, compared with January, 1922.
Compared with February, 1921, the same
mines report a decrease in the output of gold

Agricultural and Business Conditions

and lead and an increase in the production of
silver and copper. The reporting gold, silver
and lead mines are operating at approximately
100 per cent capacity.
Comparative figures of the output of metal
of 19 reporting mines in February, 1922, Jan
uary, 1922, and February, 1921, are shown in
the follow ing ta b le :

rather than a decrease in industrial activity
in the district.
Sales of electric power to the lumber in
dustry in the Pacific Northwest during Feb
ruary, 1922, showed an increase of 44 per cent
over sales during the corresponding month a
year ago. Activity in oil producing, mining,
and manufacturing industries in California was
reflected in increased purchases of electric
Feb., 1922
Jan., 1922
Feb., 1921
32,238
32,533
42,310 power, as compared with the previous month,
Gold (o z .) ........
Silver ( o z . ) . . . .
599,199
639,041
594,364 and the same month a year ago. Consumption
Lead (lb s .). . . . 10,552,068
11,659,627
10,933,582 of power for agricultural purposes continued
*Copper (lb s .).. 7,346,000
8,077,000
7,043,000 at the low levels customary at this period of
*Blister.
the year, when extensive irrigation is un
necessary.
Production of petroleum increased slightly
Statistics on production and total industrial
during March, the daily average output being sales of electric energy during February, as
333,737 barrels compared with 324,767 barrels furnished by 15 reporting power companies,
in February, an increase of 8,970 are presented in table “ I” (see opposite page).
Petroleum barrels (2.7% ) per day.
The
sharp upward movement in con
sumption of petroleum recorded in February
was not sustained during March, average
daily shipments being but 292,128 barrels, a
decline of 14,164 barrels per day from the
previous month. March production exceeded
consumption by 41,609 barrels per day and
stored stocks were consequently increased,
being on March 31st, 37,991,694 barrels, an
increase of 1,289,884 barrels over the figure
reported on February 28, 1922.
Fifty-eight new wells were opened during
the month with an initial daily production of
22,000 barrels, and two wells were abandoned,
an increase of 56 producing wells.
Statistics of oilfield operations as furnished
by the Standard Oil Company o f California
are shown in the accompanying chart and in
table “ H .”
Total sales of electric energy for industrial
purposes were approximately the same in
February, 1922, as in February, 1921, de
creased sales in the Intermountain
Electric section offsetting increases in CaliEnergy
fornia and the Pacific Northwest.
Compared with January, 1922, sales
in February declined 4 per cent. This decline
reflects the fewer working days in February

(H) Petroleum —

March, 1922

Production (daily average)............. ................................
333,737 bbls.
Shipments (daily average)..............................................
292,128 bbls.
Stored Stocks (end of m on th ).........................................37,991,694 bbls.
New W ells Opened............................................................
58
W ith Daily P roduction.................................................
22,000 bbls.
W ells Abandoned ............................................................
2

„,

February, 1922

324,767bbls.
306,292 bbls.
36,701,810 bbls.
45
10,805 bbls.
4

March, 1921

337,683 bbls.
295,426 bbls.
24,213,627 bbls.
66
29,835 bbls.
6

Federal Reserve Bank of San Francisco

The peak of unemployment in this district
has evidently been passed, and reports from
labor authorities in seven states indicate a
marked increase in employment durLabor ing the past thirty days. These re
ports reflect a number of favorable
factors, chief among which were the absorp
tion of workers in agricultural pursuits, steady
expansion in building operations, the begin
ning of highway construction and repair work,
and increased activity in many of the lead and
copper mines of the district which heretofore
have been either closed down or operating at
greatly reduced capacity. It is to be noted,
however, that there has been an apparent re
versal in the character of the demand for la
bor, the present need being more largely for
unskilled than for skilled laborers.
Employment in the Pacific Northwest in
creased gradually during the month. Reports
from the 10 principal lumbering sections of
Oregon and W ashington show that 61,427
loggers and lumbermen were on the payrolls
March 25th compared with 60,697 men on Feb
ruary 15th and 55,426 men on March 25th a
year ago. The opening of the Alaska fishing
season and the beginning of new highway con
struction are expected to absorb from 3,000 to
5,000 unskilled workers during the next thirty
days. Increased building activity in several
cities of the Pacific Northwest provided steady
employment for many classes of skilled labor.
In California, seasonal agricultural work is
now in progress and is making its normal de
mands for common labor. A ccording to re
liable authorities, employment in the metal

industries of California (exclusive of ship
building) increased 19 per cent during the last
two months. Reports filed with the Califor
nia State Labor Commissioner show that the
public employment bureaus in the larger cities
of California filled 13,271 positions during
March, compared with 9,089 positions in Feb
ruary, an increase of 4,182, or 46 per cent. In
that state wage reductions applying to both
skilled and unskilled labor were reported dur
ing the month. A large lumber company in
Northern California reduced wages of all em
ployes 5 per cent on April 1st. The Califor
nia Metal Trades Association has announced
a reduction of 10 per cent in wages of all
metal workers, to take effect April 17th. On
April 11th the basic minimum wage for women
and minors employed in manufacturing, fruit,
vegetable and fish canning and packing in
dustries, as well as unclassified occupations,
was reduced from $16.00 to $15.00 a week by
the California State Industrial W elfare Com
mission.
In the Intermountain states (Arizona, N e
vada, Idaho and Utah) the trend in employ
ment was decidedly upward. Reports from
these states indicate a steady increase during
the month in the demand for mine, farm and
railroad labor. The present number of unem
ployed in Nevada is estimated to be 4,500, in
Idaho 3,000 and in Arizona 2,500. An author
ized program of public improvements consist
ing mainly of city and highway paving is now
being started and will further relieve the pres
ent unemployment of unskilled labor in these
states.

( I ) E l e c t r ic E n e r g y —

(1) Production—
California (8 companies
reporting)

.....................

Peakload K. W .

Plant Capacity K. W .
1922

1922

1921

1922

961,925

779,415

740,405*

767,358*

1921
556,307*

1922

Plant Output K. W . H.
February,
1921
1922

244,427,027

264,646,079

Pacific Northwest (3
companies reporting).

198,545

174,430

183,045

149,557

142,519

128,132

58,521,207

65,169,580

Intermountain States (4
companies reporting).

212,997

204,872

93,416

97,208

107,927

40,286,604

46,101,496

Tw elfth District (15 com
panies reporting) . . . .1,37 3,4 67

1,349,352

1,167,332

343,234,838

375,917,155

(2) Sales—

Number of Industrial Consumers
Jan.,
Feb.,
Feb.,
1922
1921
1922

983,378* 1,007,085*

792,366*

Connected Industrial Load H . P.
Feb.,
Jan.,
Feb.,
1922
1922
1921
1,362,716* 1,297,651* 1,227,920*

Industrial Sales K. W . H .
Feb.,
Jan.,
Feb.,
1922
1922
1921

California ...........................

41,921*

42,605*

38,920*

141,748,548

148,217,652

Pacific N orthw est............

4,769

4,707

121,920

189,938

115,163

29,152,726

30,475,502

25,740,263

Intermountain S tates.. .

9,656

4,756
9,695

8,726

289,900

283,331

267,159

20,829,088

22,542,905

30,918,787

Tw elfth D istrict...............

56,346*

57,056*

52,353*

191,730,362

201,236,059

192,477,644

1,774,536* 1,770,920* 1,610,242*

135,818,594

*N ot reported by all companies. Figures so marked are comparable under respective headings and dates, but not strictly accurate for
comparison with other portions of the table.

Agricultural and Business Conditions

Increased activity in manufacturing indus
tries in three of the four largest cities of the
district is indicated by the March report of
the United States Employment Service, De
partment of Labor, compared with February
returns. Figures showing the actual and per
centage increase or decrease in employment of
firms in the manufacturing industries employ
ing 501 men or more are given in the follow
ing ta b le:

was 3.4 per cent less in March, 1922, than in
the same month a year ago, and the amount
of the average sale declined 3.1 per cent. The
comparison of March, 1922, with March, 1921,
lacks great significance because Easter buying
was included in the March returns of 1921,
whereas this year it will be largely reflected
in April reports.
MILLIONS

Numerical increase or
Percentage increase or
decrease (—) in employ- decrease (—) in employ
ment during Mar., 1922 ment during Mar., 1922,
compared with Feb.,
compared with Feb.,
1922
1922

Los Angeles ..........
Portland .................
San F ra n cisco........
Seattle .....................

367
— 682
344
274

MI LLI ONS

192 0 s \LE S
»1
192 »
If
- 0 - 132 2
_

1.5
— 8.1
5.0
13.0

j
li
li
li
h

Measured by dollar value, the net sales of
33 reporting stores during March, 1922, were
6.2 per cent less than in March, 1921, and
sales for the three months period endRetail ing March 31, 1922, were 7.4 per cent
Trade less than in the same period in 1921.
Making due allowance for the decline
in prices o f goods at retail during the year
(estimated to be between 5 and 10 per cent),
sales during March, 1922, were approximately
equal in volume to sales during March, 1921.
The comparison in those stores which record
the total number and the average value of
their sales was not so favorable. The number
of individual sales transactions of 13 stores

II
II
li
1
II
II
'l
1

192 0 s ALE S

7 '

%
\ \ i/ o*
o\
VV
132 2 S M E S

/ /
*
f

fé

921 SAI .ES

Net Sales of 22 Department Stores in Twelfth Federal Reserve District
( i n M illio n s o f D ollars)

(J ) R e t a i l T r a d e A c t i v i t y —

CONDITION OF RETAIL TRADE DURING MARCH, 1922
In Federal Reserve District No. 12
(33 Stores R eporting)

Angeles

Oakland

Salt Lake
City

San
Francisco

Seattle

Spokane

District

L o8

No. of reporting firms...............................
Net sales (percentage increase or de
crease) March, 1922, compared with
March, 1921 .............................................
March, 1922, compared with Feb
ruary, 1922 ...........................................
Period Jan. 1 to March 31, 1922,
compared with same period in 1921.
Stocks: (percentage increase or de
crease) March, 1922, compared with
March, 1921 .............................................
March, 1922, compared with Feb
ruary, 1922 ............................................

— 16.6

— 20.7

— 3.9

— 4.7

— 15.4

— 6.2

26.5

34.7

23.6

33.7

46.4

22.2

30.4

— 1.5

— 18.0

—20.9

— 6.2

— 9.5

— 15.7

— 7.4

22.7

15.3

4.2

10.4

— 6.9

2.6

— 2.4

6.7

2.6

11.7

15.7

17.5

18.3

7.1

Percentage of average stocks on hand
at close of each month since Jan. 1,
1922, to average monthly sales dur
ing same period.......................................

466.7

648.9

575.4

489.3

472.8

751.0

500.7

Percentage outstanding orders at
close of March, 1922, to total pur
chases during year 1921.........................

6.1

10.3

6.3

9.5

Federal Reserve Bank of San Francisco

The following statement shows the amount
of the average sale (cash, charge and c. o. d.)
in Los Angeles, Salt Lake City, San Francisco
and Seattle .
March
February
March
1922

Los Angeles ..................... $2.23
Salt Lake C ity................... 1.58
San Francisco ................. 2.53
Seattle ................................. 1.80
$2.14

1922

1921

$2.33
1.65
2.33
1.47

$2.34
3.09
1.73

$1.99

$2.21

On March 31st the value of stocks (selling
price) in the reporting stores was 2.4 per cent
below the reported value at the close of March,
1921, but 7.1 per cent above the figure for
February 28, 1922. The amount of outstand
ing orders at close of March was 9.5 per cent
of the total purchases during the year 1921.
Collections were characterized by reporting
firms as fo llo w s:
Excellent

Number of firms............... 1

Good

Fair

Poor

Table “ J” ( see opposite page) gives in detail
statistics in regard to sales, stocks and out
standing orders as furnished by 33 department
stores and mail order houses in this district.
Trade at wholesale during March was less
active than is customary at this season. Re
ports from 195 representative
W holesale wholesale firms in 10 lines of busiTrade
ness show that sales in every line
except drugs were less in value in
March, 1922, than in March, 1921, and that in

(K )

six lines the decline in the value of sales was
greater than the decline in wholesale prices
(6.1 per cent according to the United States
Bureau of Labor) during the year period. It
therefore seems probable that in all except four
lines (drugs, dry goods, furniture and hard
ware) the physical volume of business at
wholesale during March was less than one
year ago. Compared with February, 1922, in
creases were reported in the value of sales in
all lines, the greatest gains being in the sales
of highly seasonal goods such as agricultural
implements and automobile tires.
The average net increase or decrease (— ) in
the value of sales of all reporting firms in each
line of business was as fo llo w s:
Three Months
ending M ar. 31,
M ar. 1922,
1922, compared
compared with
with same
M a r.,1921 Feb., 1922 period in 1921

Agricultural Implements. .
Automotive Supplies
Automobile T ires.............
Drugs .......
Dry Goods.
Furniture .
Groceries .
Hardware .

— 17.1
— 16.4
— 6.2
11.9
— 2.1
— 4.4
— 12.9
— 3.8
—21.4
— 13.2

Stationery .

— 34.6
— 11.9
— 11.7
6.4
6.9
6.5
— 11.2
— 1.5
— 4.3
— 12.5

87.4
22.5
45.2
22.9
23.5
18.8
21.1
24.8
38.6
11.1

Collections during March were character
ized by reporting firms as follows :
Excellent

Number of Firms............3

Good

Fair

Poor

W h o le s a le T r a d e —

(la) Percentage of increase or decrease (—) in net sales during March, 1922, compared with March, 1921
Agricultural

Number of re Implements
porting firms,.. 24
Los A n g eles... . 86.3
Portland .......... — 41.7
Salt Lake City....— 46.7
San Francisco. .
7.0
Seattle ..........
Spokane .......... — 68.3
Tacoma ..........
District ........... — 17.3

Auto
Supplies

Auto Tires

Drugs

21
— 6.9
— 16.0
— 33.7
— 26.6
— 8.4

15
40.0
— 15.8
— 54.2
—26.2
70.4
—28.7

— 16.4

—

Dry Goods

Furniture

Groceries

Hardware

16
—24.7
6.5

32
— 14.6
— 17.2
— 6.8
— 10.3
— .8
— 19.0
1.5
— 12.9

21
29.6
—23.7
— 24.9
— 17.0
20.2
—26.4
— 1.3
— 3.8

Î6.2

— *6.2
20.3

— 4.5

ii.9

— 2.1

— 4.4

1S.5
6.2

Shoes

Stationery

29
— 9.7
— 15.7
— 10.8
— 18.3
— 4.9
— 11.1
— 7.5
— 13.2

— 39.5
— i3.4
— 6.0
—2Î.4

(lb) Percentage of increase or decrease (—) in net sales from January 1, to March 31, 1922,
compared with the same period last year.
Agricultural
Implements
No. of re
porting firms. . 24
Los A n g e le s... . 32.5
Portland .......... — 50.8
Salt Lake City.. .— 59.8
San Francisco.,,.— 26.6
Seattle .............
Spokane .......... — 69.5
T a c o m a ............
District ........... — 34.4

Auto
Supplies

Auto Tires

21
— 1.9
— 15.4
— 21.1
— 21.3
— 19.5

15
30.4
12.8
— 7.9
— 15.0
31.5
14.4

— ii.9

— ii.7

Drugs

—

Dry Goods

.03

*6.4

i.2
44.0
*6.9

Furniture

16
— 9.9
17.7
14.4
35.5
7.0

Groceries

32
— 11.2
— 14.2
— 9.7
— 9.5
2.4
— 13.7
.1
— 11.2

Hardware

21
29.1
— 18.3
—25.2
— 10.0
9.1
— 24.8
— 10.8
— 1.5

Shoes

15
— 13.1
— *i.5
9.1
— *4.3

Statione

29
— 3.0
— 14.1
— 12.7
— 21.1
1.0
— 11.6
— 10.4
— 12.5

Agricultural and Business Conditions

of future orders. Dealers in agricultural im
plements, automotive equipment and shoes
report a smaller volume of orders this year
than in 1921. N o price changes were reported
during the month except in groceries and
hardware, where some advances were noted.
Statements of increases or decreases (— ) in
the value of sales of 195 reporting firms dur
ing March, 1922, compared with March, 1921,
and the three months of 1922 compared with
the same period in 1921 are shown in table
“ K ” (see preceding page).

One hundred and two firms reported their
collections on April 1, 1922, and April 1, 1921,
as fo llo w s:
Percentage of Past Due Accounts on April 1,1922, to Total Amount Due
from Customers on the Same Date
Number of
Firms

Agricultural Implements ........... 6
Automobile T ires............ ............6

1922

1921

24.1
21.5

20.6
18.1

Percentage of Collections during month (March) to total amount Due
from Customers (outstanding) on first of that month
Number of
Firms

Automobile Supplies ---- ......... 20
3
Drugs ...............................
6
Dry Goods .....................
Furniture ....................... . , . 7
14
Hardware .........................
Shoes .......................................... 9
Stationery ....................... .. . . . 16

1922

1921

52.9
86.2
36.6
55.1
47.1
33.6
58.4

58.1
74.0
41.9
58.5
44.6
41.5
55.7

MARCH PRICES 1921=100%= MARCH 1921SALES
U.S.BUREAU OF LABOR INDEX
NO. W HOLESALE P R IC E S
AGRICULTURAL IMPLEMENTS

A U T O M O B IL E S U P P L IE S
A U T O M O B IL E . T I R E S

Percentage of Outstandings April 1,1922 to March, 1922 Sales
Number of
Firms

Groceries .....................................15

1922

88.8

DRUGS

1921

DRV G O O D S

88.6

F U R N IT U R E

A majority of the reports received from
wholesalers in drugs, dry goods, groceries and
stationery state that the volume of orders
placed for spring and summer deliveries has
been as large or larger this year than last year.
In the hardware, automobile tire and furniture
business, the trend was not defined, some firms
reporting a larger and others a smaller volume

G R O C E R IE S
H ARDW ARE
SH O ES
S T A T IO N E R Y

______________________0

feQ 80 100 120 140 160

Dollar Value of Sales of Representative Wholesale Houses and General
Wholesale Prices in March, 1922, Compared with March, 1921

(L) Building Permits—
No.

March, 1922
Value

No.

February, 1922
Value

No.

March, 1921
Value

Per Cent Increase
or Decrease (—)
in Value March,
1922 compared
with March, 1921

Berkeley .........
B o is e ................
Fresno ............
Long Beach ..

............
195
............
93
............
240
............
350
Los Angeles .. ............ 4,241
732
Oakland .......... ............
Ogden ............. ............
26
Pasadena ........ ............
312
Phoenix .......... ............
54
Portland ........ ............ 1,388
Reno ................ ............
24
315
Sacramento ... ............
Salt Lake City ............ 107
San Diego . . . . ............
382
San Francisco ............ 848
75
San Jose ........ ............
Seattle ........... ............ 968
Spokane ........ ............ 295
150
Stockton ......... ............
401
Tacoma .......... ............

512,000
111,461
607,966
1,154,083
10,964,829
1,925,577
46,885
643,877
384,558
3,162,855
88,275
813,737
245,310
581,700
3,289,251
120,160
1,791,670
302,418
384,143
301,531

151
47
175
301
2,842
537
6
195
48
934
8
203
37
308
609
74
691
84
81
269

158
136
283
414
2,911
703
46
247
138
1,362
24
142
161
338
591
73
1,196
284
106
444

20,757
819,714
1,164,084
7,579,798
1,424,772
6,325
402,772
120,466
1,541,745
27,600
678,307
47,630
490,357
2,830,991
121,570
611,635
132,190
134,428
329,961

339,333
98,517
393,445
1,359,609
6,915,216
1,314,457
79,190
409,012
357,889
1,527,805
31,130
320,100
250,583
326,377
2,941,401
105,523
923,180
267,690
220,443
361,935

50.8
13.1
54.5
— 15.1
58.5
46.1
— 40.7
57.4
7.4
107.0
183.5
154.2
— 2.1
78.2
11.8
13.8
94.0
12.9
74.2
— 16.6

District ........... ............11,196

$27,432,286

7,600

$18,917,868

9,757

$18,542,835

47.9

432,766

Federal Reserve Bank of San Francisco
The value of building permits issued in
March, 1922, was the highest figure ever re
corded in this district, exceeding the previous
record month of October, 1921, by
Building 17.5 per cent and the month of
Activity
March, 1921 (also an active month),
by 47.9 per cent. This percentage
is the more significant when allowance is made
for the decline of approximately 6 per cent in
wholesale prices during this period. The ad
vent of the spring season of outdoor work
and a belief in the comparative stability of
present prices of building materials were ap
parently the major factors in initiating this
record building program, which should do
much to relieve the present shortage of many
types of buildings.
Reports from the building departments in
20 principal cities of this district show 11,196
permits issued during March with a valuation
of $27,432,286, compared with 9,757 permits
issued during March, 1921, with a valuation
of $18,542,835, or an increase of 14.7 per cent
in number and 47.9 per cent in value during
the year. During the first quarter of 1922
there were 27,094 permits with a valuation of
$69,223,030 issued in the same 20 cities com
pared with 22,086 permits with a valuation of
$39,268,659 issued in the first quarter of 1921.
These figures represent an increase of 5,008,
or 22.6 per cent, in number and of $29,954,371,

or 76.2 per cent, in value of building permits
issued during the period January 1 to March
31, 1922, compared with the same period in
1921. Seasonal improvement in construction
activity is shown by the fact that building
permits issued during March were greater in
number in all cities and greater in value in
16 cities than in February.
The accompanying chart shows the number,
total valuation and average value of building

permits issued in this district since January,
1921.
Comparative figures of number and
value of building permits issued in 20 report
ing cities during March, 1922, February, 1922,
and March, 1921, are shown in table “ L ” (see
opposite page).
Business failures during March (229) were
more numerous than during any previous
month of the readjustment period, and ex
cepting January of this year, the
Business amount of liabilities ($5,272,387)
Failures was also greater. Compared with
the 154 failures with liabilities of
$2,350,807 reported in February, the March fig
ures show an increase of 75, or 48.6 per cent, in

Numberfof Business Failures, Twelfth Federal Reserve District and
United States. 1919-1922

number and of $2,921,580, or 124.2 per cent, in
the amount of liabilities involved. In compari
son with March a year ago, when 165 failures
with liabilities of $3,046,691 were reported,
there was an increase in number of 64, or 38.7
per cent, and of $2,225,696, or 73.5 per cent,
in amount of liabilities. Commercial defaults
during the first quarter of 1922 numbered 590
with liabilities of $13,253,643, compared with
447 failures having liabilities of $7,131,253 in
the corresponding period of 1921.
Notwithstanding the rising curve of busi
ness failures, the situation in this district has
been and is relatively better than in the coun-

Liabilities of Business Failures, Twelfth Federal Reserve District
and United States, 1919-1922

Agricultural and Business Conditions

try as a whole, as is shown by the charts on
preceding page. Although the trend of the
number of business failures has been steadily
upward since the middle of 1920 in both cases,
it has not advanced so rapidly nor to such
great heights in this district as in the whole
United States. Both lines registered a sharp
upward movement in March.
R. G. Dun & Company’s comparative fig
ures of the number and liabilities of business
failures in the states of this district during
March, 1922, and February, 1922, are shown in
the follow ing ta ble:
March, 1922
No.
Liabilities

Arizona .................
3
California ..............105
Idaho ..................... 11
Nevada .................. 1
Oregon ................. 47
Utah : ..................... 9
Washington .......... 53
District

..................229

32,000. . .
1,440,08375
211,234
8,500. . .
487,164
86,450
3,006,956

$5,272,387

February, 1922
N o.
Liabilities

.................
$1,054,772
10
133,752
.................
28
227,242
13
144,620
28
790,421
154

but less than that reported in January (8 per
cent). Inasmuch as the March figures are
greatly affected by income tax payments,
which are estimated to have been much
smaller this year than last year, it is probable
that the improvement in actual business
transacted, noted in the first tw o months of
the year, continued during March,
Bank debits during March, 1922, compared
with March, 1921, were greater in 13 of the
20 reporting cities, the increases not being con
fined to any particular section of the district.
The accompanying chart shows the monthly
movement of debits to individual accounts dur
ing 1921 and 1922 to date:
Comparative figures of debits to individual
accounts in 20 clearing house centers during
the four weeks ending March 29, 1922, March
1, 1922, and March 30, 1921, are shown in
table “ M .”

Debits to individual accounts (as reported
by 178 banks in 20 clearing house centers)
during the four weeks ending March 29t'h,
were $1,862,146,000, a decrease of
Bank
$120,809,000, or 6.0 per cent, comD ebits pared with March, 1921. This per
centage of decline compared with the
corresponding month a year ago is greater
than that reported in February (3 per cent)
M IL L IO N S
' 2400

M l LLIO N S
2400

---------- 2300
2200

---------- 2200

A
/\

ÿ=

-1 -

1900----

----------1900

1700----

----------1600
1500 - r -

6 7
1921

( M ) B a n k D e b i t s *—

$2,350,807

—

I0’

Berkeley ...........
L ong Beach
Los A ngeles. . . .
Oakland ............
O g d e n ...............
Pasadena ..........
P o rtla n d ............
Reno .................
Sacramento
Salt Lake C ity ..
San D ieg o..........
San F rancisco. ..
San J ose............
Seattle ..............
Spokane ............
Stockton ...........
Tacoma ............
Y a k im a .............

Four weeks
ending
M ar. 29, 1922

Four weeks
ending
M ar. 1, 1922

Four weeks
ending
M ar. 30, 1921

17,114
9,027
36,151
27,659
461,910
74,032
17,335
25,204
126,615
8,778
55,035
46,053
34,938
656,888
17,584
140,322
42,594
19,086
35,316
10,505

16,167
9,505
36,352
25,555
437,489
72,346
16,013
20,571
114,376
7,943
48,007
44,947
32,864
629,252
15,167
128,555
36,193
18,018
30,002
10,127

11,588
8,796
39,601
23,386
428,419
76,233
12,447
24,790
141,282
9,845
49,648
56,127
30,755
819,764
15,933
125,323
44,090
18,597
37,165
9,166

- F T '500

1922

Debits to Individual Accounts in 20 Principal Cities, Twelfth Federal
Reserve District, 1921-1922

$1,862,146

$1,749,449

$1,982,955

*000 Omitted.

Per Cent Increase

mÏ.’ mTÏÏb

(N ) S a v in g s A c c o u n t s * —
M ar. 31,1922

Feb. 28,1922

M ar. 31,1921

.....................
.....................
.....................
.....................
.....................
.....................
.....................

Number of Banks

12
7
9
9
16
15
6

$,216,377
74,909
38,015
25,105
333,685
30,246
12,794

$214,741
75,020
38,501
24,732
331,645
30,339
13,546

$200,551
73,309
38,433
23,923
318,415
35,619
14,487

7.9
2.2
— 1.1
4.9
4.8
— 15.1
— 11.7

Total ......................... .....................

$731,131

$728,524

$704,737

3.7

Los A ngeles.................
Oakland ........................
Portland .......................
Salt Lake C ity..............
San F rancisco...............
Seattle ...........................
Spokane ........................

*000 Omitted.

M ar. 31,19;

Federal Reserve Bank of San Francisco

spring demands in agricultural and industrial
fields (especially building) resulted in a dull
acceptance market during the greater part of
the period from March 15th to
Acceptances April 15th. Buying of accept
ances was also retarded by a
gradual decline in rates, prospective pur
chasers being reluctant to purchase in the de
cline. Present rates (3% per cent) have ap
parently seemed stable in the minds of buyers,
for they have been followed by fairly strong
buying in both outlying and city districts in
the week ending April 15th.
Reports received by this bank from 36 of
the principal accepting banks in the district
show a decrease of $7,163,802, or 55.3 per cent,
in the amount of acceptances bought in March,
compared with February, and, comparing the
same two months, a decrease of $962,376, or
21.7 per cent, in the amount of bills accepted.
In both cases the decline occurred in the Pa
cific Northwest and in Southern California,
the volume of acceptance business in Northern
California remaining practically unchanged
(see table “ O ” ).
During the past 60 days, the Pacific Coast
has released sizable blocks of acceptances
against export shipments of coast commodities.
These bills have been readily absorbed, often
in preference to the same class of eastern
collateral.
Principal supplies of new bills
arose from transactions in wheat, sugar, cot
ton and canned fruits.
The total supply of bills remains small, with
an increasing demand. The present (April
15th) quotations are 3 } i per cent on eligible
prime members’ bills and Zy2 per cent on
eligible non-members’ bills. A general classi
fication, according to maturity, of bills mar
keted during the past two months fo llo w s:

The total amount in all savings accounts as
reported by 74 banks in seven principal cities
increased 36 hundredths of 1 per cent during
the month ending March 31st, beSavings
ing on that date $731,131,000, comAccounts pared with $728,524,000 on Febru
ary 28th. During the month end
ing February 28th the amount of savings ac
counts in the same banks increased 1 per cent
and during the month ending January 31st, 2.7
per cent. The noteworthy changes during the
month of March were an increase in the
amount of savings deposits in San Francisco
and a decrease in Spokane.

Savings Accounts in Banks in Seven Principal Cities of the
Twelfth Federal Reserve District, 1919-1922
N o te: A s figures from o n ly 12 of 13 reporting banks in Los A n geles are available,
point for Los A n geles and the District, as of M arch 31, is omitted.

The increase in savings account deposits
during the year ending March 31st was 3.7
per cent. In comparison with figures of a
year ago, Portland and Seattle have lately bet
tered their position, as is shown by the ac
companying chart.
The changes in savings accounts in each
city from one month and one year ago are
shown in table “ N ” (see opposite page).
Tendency of the banks of the district to
conserve their resources to meet expected

March 15 to
April 15

30
60
90
120

(0) Acceptances]'—

327,874 $1,250,447 $

Northern California

..2 ,8 0 2 ,4 7 8

Southern California

333,499

.......................... 30.7%
..........................42.8%
..........................31.4%
.......................... 3.1%

10.0%
37.2%
50.0%
2.8%

-Amount Bought—

Created in
Amount Accepted
Twelfth District
Mar., 1922 Feb., 1922 Mar., 1922 Feb., 1922
Pacific Northwest .........$

days
days
days
days

February 15 to
March 15

38,607 $

917,500

2,267,076

2,651,284

1,880,969

908,704

287,662

756,336

All Other
Total
Mar., 1922 Feb., 1922 Mar., 1922 Feb., 1922
$

847,638 $1,564,554 $

1,021,338
952,671

2,060,108
5,783,535

Amount held at
close of month
Mar., 1922 Feb., 1922

886,245 $ 2,482,054 $ 3,868,206 $ 5,106,045

3,672,622
1,240,333

3,941,077
6,539,871

3,502,891

2,138,744

9,781,241

11,405,435

Other Districts ...............
Total

............................. $3,463,851 $4,426,227 $2,977,553 $3,554,805 $2,821,647 $9,408,197 $5,799,200 $12,963,002 $17,152,338 $18,650,224

f3 6 Banks reporting.

Agricultural and Business Conditions

A further decline of one-half of 1 per cent
(from 6y2 per cent to 6 per cent) in the rate
charged on high-grade customers’ paper in
Spokane was the principal change in
Interest interest rates prevailing in the cities
Rates
of the district during March. A 6
per cent rate on this class of paper
is now reported in Los Angeles, San Fran
cisco and Spokane. Interest rates on other
classes of paper were generally unchanged,
although a decline of one-half of 1 per cent in
the quotations on prime paper bought through
brokers was also reported from Spokane.
A statement of the prevailing interest rate
on commercial paper charged banks in Fed
eral Reserve Bank and Branch cities for the
30-day period ending April 5 and March 6,
1922, fo llo w s :
Commercial
Paper o f
Customers
M ar. 6
A p r. 5

Los A n g e le s ....6
Portland ............7
Salt Lake C ity ..7
San Francisco ..6
Seattle ............... 7
Spokane ............6

6^2
7
7
6
7
6y2

Paper
Bought Through
Brokers
M ar. 6
Apr. 5

5
4 ¿4
5
43,4-5
5
4^

5
43/4
4^4
4245
5

On April 12th, the Secretary of the Treasury
announced an offering of Zy2 per cent Treas
ury Certificates of Indebtedness. These certifi
cates were designated as Series
Government D-1922, dated April 15, 1922, and
Financing
maturing October 16, 1922. Sub
scriptions to this series of certi
ficates closed at the close of business on April
15, 1922, the amount offered being approxi
mately $150,000,000. All of the Federal reserve
districts over-subscribed their quota, total sub
scriptions received amounting to $309,212,000.
In the Tw elfth Federal Reserve District sub
scriptions totaling $18,163,000 were received,
of which $10,590,000 were allotted.
The Treasury Department has extended to
May 15, 1922, the authority granted to Federal
reserve banks to purchase 4^4 per cent V ictory
Notes (up to an amount not exceeding $100,000,000) direct from holders at par and accrued
interest.
Expansion in the loans and discounts (ex
clusive of rediscounts with this bank) of 68
member banks in the principal cities of this
district, which has been uninterBanking rupted for seven weeks, has temSituation porarily ceased. On April 5th loans
and discounts were $834,263,000,
compared with $846,754,000 on March 22nd,
$842,008,000 on March 8th and $818,102,000 on

February 1st. Borrowings of the reporting
member banks from the Reserve Bank, after
increasing during the four weeks ending
March 8th, from $19,869,000 to $27,614,000,
declined to $22,651,000 on April 5th. Net de
mand and time deposits of the 68 reporting
banks have shown a similar increase and de
crease, rising from $1,097,144,000 on February
1st to $1,142,194,000 on March 15th and de
clining to $1,104,241,000 on April 5th. There
has been little change in their investments.
Statements of the Federal Reserve Bank of
San Francisco show that its discounts for all
member banks have fluctuated irregularly
downward since February 1st. Total bills
discounted by this bank were $64,705,000 on
February 1st, from which amount they de
clined to $55,241,000 on February 21st, rose
to $61,106,000 March 8th and declined to $49,025,000 on April 12th. If from the weekly
figures of bills discounted by this bank, the
borrowings of the 68 reporting banks be sub
tracted, figures will be obtained representing
the borrowings of non-reporting member

Total Deposits, Loans and Discounts, Investments, and Bills Payable
and Rediscounts of Reporting Member Banks

banks, those located in the smaller cities and
the rural communities. Such borrowings have
steadily fallen, excepting a slight upward
movement during the third week of March.
On February 1st they were $37,037,000, on
March 8th $33,493,000 and on April 5th $31,930,000. In view of the usual need for bank
credit in the agricultural sections during the
early spring, this contraction of borrowings
from the Federal Reserve Bank is indicative
of increasing ability of the banks outside the
larger cities to provide, without assistance,
their customers’ requirements.
It probably
also indicates considerable liquidation of old
loans as a result of the recent advances in the
prices of principal farm products.

Federal Reserve Bank of San Francisco
W hile bills discounted by this bank de
creased during the five weeks ending April
12th, and bills bought in the open market have
been reduced in the same period from $10,067,000 to $5,562,000, total earning assets have
increased, due to the rise in holdings of United
States Government securities from $20,767,000
on March 8th to $56,940,000 on April 12th.
Total cash reserves have fallen from $289,668,000 to $269,788,000. Total deposits have in
creased from $136,244,000 to $146,666,000.
Federal Reserve notes in actual circulation
have declined from $227,807,000 to $217,671,000. Note circulation is only slightly lower
than it was on February 1st, despite the con
siderable decline in bills discounted.

Market, Federal Reserve Bank of San Francisco

PRINCIPAL RESOURCE AND LIABILITY ITEMS OF REPORTING MEMBER BANKS IN RESERVE
CITIES IN TWELFTH FEDERAL RESERVE DISTRICT
April 5, 1922

M ar. 8,1922

April 8,1921

$ 842,008,000
307,933,000
98,552,000
1,131,448,000
27,614,000

$ 875,154,000
294,988,000
97,413,000
1,102,533,000
101,471,000

COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN
AT CLOSE OF BUSINESS, APRIL 12, 1922

FRANCISCO

Number of Reporting Banks........................................................

Loans and Discounts............................................................................. $ 834,263,000
Investments ............................................................................................
308,678,000
Cash in Vault and with Federal Reserve Bank...............................
100,399,000
Total Deposits ......................................................................................... 1,114,092,000
Bills Payable and Rediscounts with Federal Reserve Bank..........
22,651,000

RESOU RCES
M ar. 8, 1922

April 15.1921

Total Reserves ............................................................................................................ $269,788,000
Bills Discounted ........................................................................................................
49,025,000
Bills Bought in Open Market ..............................................................................
5,562,000
United States Government Securities ...........................................................
56,940,000

April 12.1922

$289,668,000

$195,876,000

61,106,000

159,456,000

10,067,000

11,497,000

20,767,000

12,593,000

Total Earning A ssets .............................................................................................. $111,527,000
All Other Resources* ..............................................................................................
45,294,000

$ 91,940,000

$183,556,000

40,356,000

46,811,000

Total Resources

$421,964,000

$426,243,000

$ 21,432,000

........................................................................................................$426,609,000

L IA B IL IT IE S
Capital and Surplus ...................................................................................................$
Total Deposits ..........................................................................................................
Federal Reserve Notes in Actual Circulation ..........................................
All Other Liabilities! ..............................................................................................

Total Liabilities

$ 22,579,000
136,244,000

128,308,000

217,671,000

227,807,000

230,225,000

39,682,000

35,334,000

46,278,000

........................................................................................................ $426,609,000

»Includes “ Uncollected Items” .........................................................................
flncludes “ Deferred Availability Items” ......................................................

22,590,000
146,666,000

$421,964,000

$426,243,000

38,775,000

33,934,000

45,120,000

33,914,000

29,563,000

34,315,000

THE MOVEMENT OF PRICES AND OF FEDERAL RESERVE BANK LOANS

General wholesale prices (327 commodities)
in the United States have been approximately
stable since June, 1921, and since that date the
prices of 20 basic raw materials* have risen
7.66 per cent (see Chart “ B ” ). This apparent
stability of the general wholesale price level,
together with the steady increase during the
last eight months in prices of basic raw mate
rials, prompts an inquiry into the comparative
movements of wholesale prices and of the re
discounts of Federal reserve banks.
The decline in wholesale prices which began
in this country in May, 1920, and extended un
interruptedly until June, 1921, was part of a
world-wide downward movement in prices, the
extent and rapidity of which are portrayed in
Chart “ A .” It will be noted that the decline
first appeared in Japan in March, 1920, and
that in Japan, also, the upward movement first
occurred— in April, 1921. Stability, and even a
slight upward movement, next appeared in the
United States and France in the summer of
1921. The upward reaction has been succeeded

was 45.5 per cent, it will appear that threefourths of this decline occurred during the
seven months’ period in which Federal Reserve
Bank loans to member banks were increasing.
As the physical volume of business de
creased, and as customers of member banks
began to pay off bank loans contracted at
higher prices, member banks in turn paid off

C H A R T B —Movement of Total Discounts and Federal Reserve Note
Circulation of all Federal Reserve Banks (in millions of dollars)
Compared with General Wholesale Prices and Prices of 20
Basic Raw Materials (1913=100)
1919-1922

C H A R T A —Movement of Wholesale Prices in England, France, Japan,
Sweden and the United States, 1919-1922
(1913=100)

in Japan and France by a renewed downward
movement. In England and Sweden the whole
sale price level is still declining, although more
slowly.
Total discounts of Federal Reserve banks in
creased steadily from May, 1920, (when the
decline in the general level of wholesale prices
began) until O ctober of that year (see Chart
“ B ” ) and, on December 31, 1920, were 8.58 per
cent higher than they were on May 7, 1920,
whereas wholesale prices had during the same
interval declined 34.9 per cent. Inasmuch as
the total decline in wholesale prices from the
peak in May, 1920, to the trough of June, 1921,
* W h e a t, c o r n , h o g s, steers, su g ar, h ides, w o o l, silk, co tto n , ru bber,
pig iro n , c o p p e r, lead, co a l, p e tro le u m , S o u th e rn y e llo w pine,
cem en t, p ap er, su lp h u ric acid, to b a cco .

their borrowings from the Federal Reserve
Bank.
Since June, 1921, the wholesale price level in
the United States (as measured by the Bureau
of Labor Index) has been approximately con
stant, the February index number being 2.0
per cent greater than that of June, 1921. If,
therefore, the amount of rediscounts by Fed
eral reserve banks governed the movement
of wholesale prices, such rediscounts would
have had to remain approximately constant in
amount during the period, June, 1921, to Feb
ruary, 1922. On the contrary, they declined
54.0 per cent. It appears, then—
1. That loans of Federal reserve banks to member
banks increased steadily during the first six months
of the price decline which began in May, 1920;
2. That at the end of eight months of decline,
when wholesale prices had fallen 34.9 per cent, total
rediscounts of Federal reserve banks were 8.58 per
cent greater in amount than they had been before
the decline in prices commenced;
3. That while wholesale prices were stable, or
rising slowly between June, 1921, and February, 1922,
loans of Federal reserve banks declined further by
54.0 per cent.

Full text of Economic Review (Federal Reserve Bank of San Francisco) : April 17, 1922

FRASER