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« • ' “ N OT TO BE RELEASED FOR PUBLICATION BEFORE TH E M O RN ING OF A U G U S T 2 7 , 1 9 2 1 A g r ic u l t u r a l a n d B u s in e s s C o n d it io 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 ed eral R eserv e B oa rd by JOHN PERRIN, Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. Y. San Francisco, California, August 16, 1921 E cumulative effect of a greater m ove T Hment of goods at retail than at wholesale, which has been evident for several months from the trade reports received by this bank, is now being reflected in one of the m ajor industries of this district. Canners of fruits and of salmon report a distinctly stronger demand for their proT h e Month ducts within the last few weeks, and the opening prices of the principal fruit canner have twice been raised on certain varieties of fruit while other varie ties have been sold out entirely. Through the canners this influence has been trans mitted to the growers of fruits who are now reported to be receiving for peaches— the staple line in this industry— around $50 per ton compared with $35 per ton bid by the canners at the opening of the season. Reports from the retail and wholesale trade for July affirm conclusions drawn from earlier reports and mentioned a b o v e ; namely, that the volume of the movement of goods at retail exceeds that at wholesale. For the district generally, retail sales of department stores were 12.9 per cent less in dollar value during the month than during July, 1920, and the value of sales for the year to August 1st is but 7.2 per cent less than the value of sales during the same period of 1920. The average percentage of decline in the selling prices of their goods reported by these stores during the year is at least 20 per cent, and it is ap parent that the volume of goods now being sold by these large retailers is in excess of that moved by them a year ago. In the wholesale trade, on the other hand, the per centages of decline in value of sales during the current month compared with July, 1920, are in several cases stated to be greater than the reported decline in the selling price of the product, and it is probable that the move ment of goods at wholesale throughout the district is generally less than it was last year at this time. Continuation of such a discrep ancy must eventually produce a condition in other lines analogous to that now obtaining in the canning industry. Generalizations cannot be used in summar izing conditions affecting the raw products of the district other than fruits. Marketing is proceeding rapidly with some and with others movement is sluggish. The 115,000,000 bushel wheat crop of the district has thus far been marketed in volume 130 per cent greater than that of last year to this date, and exports this season are 30 per cent larger than they were at this time a year ago. Approximately 75 per cent of the district’s 1921 w ool clip of nearly 73,000,000 pounds has passed out of the growers’ hands by actual sale to dealers and mill buyers at prices of from 12-18c per pound. Marketing of livestock generally is in about the same volume as it was in July, 1920, there having been during recent months a noticeable decline in the marketing of sheep from the range areas. Heavy showers have benefited those ranges previously suffering from drought in all areas except southern California. Operators in the lumber indus try of the Pacific Northwest, where produc tion is about 65 per cent of normal, express more hopeful sentiments concerning the im mediate future, basing them upon several fac tors, among which are anticipated buying by the railroads, increasing export demand from Australia and the Orient, enlarged purchas ing power in rural districts as a result of Those desiring this report sent them regularly will receive it without charge upon application. No. 8 A g r ic u ltu r a l a n d B u s in e s s 2 C o n d itio n marketing crops, and the small stocks of lum banks (67 in number) did not increase thei ber believed to be remaining in the hands of loans and discounts during July, compare« jobbers and in retail yards throughout the with June, money deposited with them b; country. Petroleum output in California de their customers from sales of early product clined slightly during the month but not so evidently being sufficient to care for de much as shipments, and stocks were added to mands incident to later harvesting an< during July. Prices of crude petroleum and marketing operations. On the contrary, mem gasoline were reduced August 3rd; all grades ber banks continued to reduce their borrow of petroleum falling 25 cents per barrel at ings from this bank, whose holdings of bill: the well and gasoline from 25c to 23c per discounted for member banks declined $12, gallon. The mining industry of the district 600,000 (8 per cent) during the month. Fed awaits revival of industrial demand for its eral reserve notes of this bank in circulatioi also declined $9,400,000 (4 per cent), an< products. It is equally difficult to generalize from the the reserve ratio of the bank accordingly ros< conventional statistics of business activity. 2.4 per cent during the month to 62.6 per cen July bank clearings of the district, approxi on August 10th, compared with 46.7 per cen mately 22 per cent less than those of a year on August 13, 1920. Reduction in the dis ago, would indicate, in view of the decline in count rate of the reserve bank to 5% per cen wholesale and retail prices, that the volume has been reflected by slightly easier monej of business being done is somewhat greater rates in the larger cities of the district, bu than it was a year ago, but business failures rates in the country are unchanged. Harvesting of grains in the southern state! for July were, with one exception, the great est in the last eighteen months both in num of the district is about completed. In th( ber and total liabilities involved. Building northern states winter wheat has been cut anc is being threshed, and the cutting permits in July outnumbered by 25 per cent those of July, 1920, with dwellings and apart W heat and of spring wheat is now undeway. Estimates of yields, whicl ment houses the predominant type of con Barley have not materially changed sinc< struction. Unemployment during July was approximately the same in amount as in June. July 1st, are given in table “ A .” Marketing of this year’s grain crop is pro The ability of farmers to dispense with much harvest help which last year they considered ceeding rapidly and many farmers are selling essential has so reduced the normal demand their grain immediately after threshing, in con from that quarter that it has not more than trast with the tendency to hold for highei balanced the decline in the number of those prices which obtained at this time last year Receipts and shipments at terminal points employed in lumbering, mining, fishing, and shipbuilding. Savings deposits of 79 banks have been heavy. Receipts of wheat at Portland, Oregon, and in the district on July 15th were approxi mately the same as those of June 15th last at Puget Sound shipping p oin ts : P er G en t In crease and 6.8 per cent greater than they were a July 1 -A u g . 12 July 1 -A u g . 12 1921 Seasox year ago. Considering the decline in prices 1921 1920 over (Cars*) (Cars*) 1920 Seasox during that time savings bank depositors can 1 ,5 9 7 100 now command a considerably larger volume Portland .......... . . 3 ,1 9 8 Puget S o u n d .. . . 1 ,4 4 1 418 245 of goods than they could in July, 1920. The banking structure of the district grows 2 ,0 1 5 130 ■. . 4 ,6 3 9 progressively stronger. Reporting member •Average number o f bushels per car 1,500. (A) Estimated Yields o f Wheat and Barley-W h e a t- -B a r le y — A u g . 1. 1921 (bushels) 1920 (bushels) Arizona ............................................ California ....................................... Idaho ................................................. Nevada ............................................. Oregon ............................................. Utah .................................................. W ashington .................................... 882,000 8,080,000 25,590,000 555,000 22,975,000 6,265,000 51,014,000 8 6 4 ,0 0 0 9 ,1 0 0 , 0 0 0 2 3 ,6 0 0 , 0 0 0 Totals ....................................... 115,361,000 A u « . 1,1921 (bushels) 9 0 5 ,0 0 0 1920 (bushels) 6 8 0 , 00C 2 8 ,7 5 0 ,0 0 C 4 2 0 ,0 0 0 2 2 ,9 0 0 ,0 0 0 5 ,3 6 6 , 0 0 0 2 9 ,0 0 0 ,0 0 0 3 ,2 4 7 ,0 0 0 3 0 2 ,0 0 0 2 ,4 8 5 , 0 0 0 6 2 3 ,0 0 0 3 7 ,9 8 2 ,0 0 0 3 ,7 1 2 ,0 0 0 3 ,8 8 3 ,0 0 0 1 0 0 ,2 3 2 ,0 0 0 4 0 ,2 7 4 , 0 0 0 4 0 ,3 6 4 ,0 0 C 3 ,4 8 6 ,0 0 C 3 0 4 ,0 0 0 2 ,5 7 6 ,0 0 0 6 8 5 ,0 0 0 F ederal R eserve Bank of San 3 F r a n c isc o Stocks of barley in warehouses wharves at Port Costa, California: and on Percent In crease A u g ., 1920A u g ., 1921 A u g . 1,1921 July 1, 1921 A u g . 1, 1920 3,571,083 bu. 1,487,494 bu. 1,549,958 bu. 130 Exports of wheat from Portland and Puget Sound ports during July, 1921, were 2,972,519 bushels compared with 2,213,923 bushels in July, 1920. Reported prices to growers of wheat and barley in some of the states of the district as compared with those of a year ago are shown b e lo w : 1921 (per bushel) W h eat 1920 (per bushel) W ashington ............. $ .90— $ .95 Oregon ..................... .95— 1.00 Utah ......................................75— .80 California .................. $1.95* $2.00— $2.65 2.00— 2.25 2.00— 2.25 3.75—- 4.00* Barley California .................. $1.15— $1.25f *N o. 1 hard white wheat hundredweight. fP e r hundredweight. delivered at $2.25— $2.50f San Francisco, per M on th ly A v era g e H ig h and L o w P rices o f N o . 2 R ed W inter W heat at C h ic a g o . S e m i-M o n th ly E x p o rt B a rley P rices at San F ra n cisco . (B) Milling— N o . M ills R e p o rtin g June July r ■' ' July (barrels) Production of reporting flour mills in this district was approximately the same during July as during June, an increased output in Oregon being offset by smaller proM illing duction in California. Operations were 41.2 per cent of capacity com pared with 41.7 per cent in June and 38 per cent in July, 1920. Millers report that do mestic buying continues on a day to day basis with prices steady or tending slightly down ward. Increased demand from the export trade has been noted recently. Stocks of flour in millers’ hands on August 1st, as reported by 24 large operators were 203,214 barrels, compared with 338,977 bar rels on the same day in 1920. Stocks of wheat held by 21 operators on August 1st were 869,760 bushels compared with 1,257,288 bush els on August 1st, a year ago, the entire de crease occurring in California. Table “ B ” shows the July production of the reporting mills by states, and the percentage of mill capacity in operation this year and last year. Final disposition of the California apricot crop has been made during the past four weeks. The yield is estimated to have been 105,000 tons, compared Deciduous 115,000 tons last year. During Fruits the same period the peak of the movement to market of California peaches and pears was passed and shipments from W ashington and Oregon began. The heaviest shipments from the latter states will be made during late August and early Sep tember. Picking and shipping of Gravenstein apples in California and early apples in Ore gon and W ashington is under way. Estimated 1921 yields of peaches, pears and apples in the O utput------------------- ^ June (barrels) Per C e n t M ill C a p a city in O p era tion July June July 1921 1921 1920 California .......... 14 4 Idaho ................... Oregon ............... 25 W ashington — 29 15 5 25 31 221,876 13,174 100,250 263,315 260,169 12,945 78,788 271,232 54 44 32 38 65 43 38 44 72 76 598,615 623,134 41.2 41.7 38 District .............. 36 22 (C) Estimated Yields o f Peaches, Pears and Apples— --------------- P ea ch es---------------(in thousands of bushels) 1921 1920 California ...................... Idaho .............................. Oregon ........................... Utah ................................. W ashington ................. 320,000* 166 199 864 1,386 *In tons (approximately 4 1 ^ t ju ly 1st estimate. 345,000* 40 100 825 423 bushels per ton ), ---------------Pears------------------- f ------------------------------------- A p p le s -------------(in thousands of bushels) (in thousands of bushels) 1921 1920 1921 1920 65,000* 73 630f 47 1,397 100 ,000* 83 560 60 2,246 5,356 3,585 4,800t 918 24,538 6,003 3,631 3,300 918 17,000 with 4 A g r ic u ltu r a l a n d B u s in e s s C o n d itio n . principal fruitgrow ing states of the district, compared with yields in 1920, are shown in table “ C” (see preceding page). Prices to growers of fruit advanced gener ally during the latter part of July. Increased demand from eastern fresh fruit buyers came with the decline in the movement to market of a record peach crop in Georgia. A sudden revival of demand for western canned fruits caused packers to advance their bids to grow ers in order to obtain additional supplies of the rapidly disappearing fruits. Apricots sold for $40 to $60 per ton, cling peaches for $50 to $55 per ton (as high as $60 in W ashington) and pears for $65 to $75 per ton. The in creased price for peaches was especially ac ceptable to growers, the opening bids of the canners for this fruit having been $35, com pared with 1920 prices of $90 to $110 per ton. The California Pear Growers’ Association disposed of the fruit under its control at its fixed price of $61.75 per ton for No. 1 Bartletts, while the Oregon Growers’ Co-opera tive Association sold its pool for $65 per ton. Shipments of peaches and pears from Cali fornia during July were considerably less than those of twelve months ago, as shown by the follow ing carload shipment figures : by a record breaking crop (10,000 carloads' of Georgia Elberta peaches. California fruit canneries will put up fron 55 to 65 per cent of their 1920 pack of 11, 382,863 cases, according to latest estimate: available. In the opening weeks o Canned the canning season, packers hesitate( Fruits to contract for fresh fruit, in viev of losses suffered on the 1920 pack the relatively large holdover stocks, and i prospective small demand. The pack of cher ries and apricots accordingly was but one third to one-half of last year’s pack. As Juh progressed, however, the demand for Pacific Coast canned fruits increased, partly due tc more general realization by the trade of th( fruit shortage resulting from small yields it other parts of the country, and partly due t( the increasing consumer demand, which be came evident after prices were lowered in th< spring. Prices of canned goods were ad vanced above opening levels in many cases and canners hastened to make delayed pur chases of fruit from the growers. The resul has been higher prices to growers, and highe: quotations on the canned product. As an ex ample of the change in prices of canned fruit table “ D ” is presented. It shows the opening prices and recent advances of the largest op Peaches Pears erator in the canned fruit industry. 70 June, 1921................................................ Approxim ately 40 per cent of the Californi; June, 1920................................................. 314 6 July, 1921................................................. 761 1,431 yellow free peach crop, and practically tin July, 1920................................................ 1,811 2,249 entire crop of yellow clings was taken by th< canners. Nearly 80 per cent of the Californii T w o m onths, 1921............................. 831 1,431 pear crop went to the canneries. It is estimatec 2,125 2,255 Tw o months, 1920............................. that about 10 per cent of the southern Oregoi The difference in shipments of pears corres pear crop, 20 per cent of the W ashington pea; ponds to the reduction in the crop yield, but crop and 15 per cent of the Utah peach crop ar< the decrease in peach shipments is out of pro being canned. The canning of peaches in th< portion to the smaller yield and is to be at Northwest and of pears in Utah is relatively tributed to the competition offered in the East unimportant. (D) Canned Fruit Prices— Fruit (Choice Grade— Can Size N o. 2% ) Apricots ................................................... ^Blackberries ........................................... Cherries, B lack ...................................... Cherries, Royal A n n e ......................... Grapes, M u sca t...................................... ^Loganberries ........................................ Peaches, Y ellow F ree........................ Peaches, Y ellow C lin g..................... Peaches, W h ite C lin g........................ Pears, B artlett....................................... July 21 Opening Prices 1921 Pack (per doz.) . . . ’•'Strawberries ..................................... •Standard grade. fA d van ced 10c dozen on standard grade. $2.35 2.25 3.00 3.00 2.35 2.35 2.30 2.35 2.35 3.00 2.05 2.40 2.90 Revised Prices 1921 Pack (per doz.) Aug. 1 Aug. 10 $2.50 2.25 2.35 2.35 2.50 2.50 2.50 3.25 2.15 $2.60 2.25 -t-t2.35 2.35 2.50 2.60 2.60 3.25 2.25 Per Gent Increase Compared with Opening Prices Aug. 1 Aug. 10 6.4 8.7 6.4 6.4 8.3 4.8 10.6 8.7 10.6 10.6 8.3 9.7 Federal R eserve B ank of San 5 F r a n c isc o W eather and range conditions were favor able for the livestock industry of the district during July. Heavy showers in the range sections of Arizona greatly beneLivestock fited grow ing feed and replen ished the failing water supply. Range and pasture lands in other states re mained in excellent condition with the ex ception of small drought-stricken areas in southern California. Indications are that hay and grain will be abundant at country points adjacent to range areas at prices not far from $6 per ton for hay and $1 per hundred pounds for feed grain. M ore cattle were received during July at the principal markets of the district than dur ing June, and receipts approximated more closely than a month ago receipts during the summer of 1920. Calves continue to be sent to market in numbers about half those of 1920. July witnessed a marked decline in the arrivals of sheep at market, though these con tinue to be greater than receipts a year ago. A t Spokane and Salt Lake City, where condi tions in the northwestern range states are most clearly reflected, declines in receipts of cattle and sheep compared with July, 1920, were particularly large. Information from 60 mar kets in the United States shows that the amount of feeder stock sent to market during the first six months of this year was 25 per cent less than last year’s figures. Receipts of livestock at the five principal markets of the district during July, 1921, and 1920, are shown in table “ E.” W ith the exception of hogs, prices of which advanced materially as is customary at this season, quotations for livestock at the markets of the district during July changed little from those prevailing in June. Calves were slightly higher at the end of the month than at the beginning, but steers and cows were slightly lower. Prices of cattle at Spokane in the mid dle of July were the lowest reported in five years. In Chicago, on the other hand, prices of cattle rose during July and the prices of sheep advanced proportionately as much as those of hogs (about 30 per cent). The range in livestock prices at the five principal markets of the district is shown in table “ F.” Final figures on the 1921 wool clip in the Twelfth Federal Reserve District are not available, but it is estimated that it was ap proximately 90 per cent of the 1920 W o o l clip of 81,000,000 pounds. Marketing of the 1921 clip has proceeded rapidly and reports indicate that 75 per cent of the wool produced has been sold outright by the grower to mill buyers and wool dealers. A t the present time it would appear that eastern buyers have purchased all the desirable clips that growers are willing to sell at present prices, and have temporarily retired from the field. The eastern market for wool is reported to be slowly broadening with a large number of mills running to capacity on orders received for spring goods. Three significant features of the recent marketing of wool in this district are worthy of comment. 1. Presence of “ distress” lots of w ool from both the 1920 and 1921 clips. Approximately 75 per cent of the 1920 clip remained to be marketed at the opening of the 1921 season. Some sales of small lots have been made since that time but usually at “ distress” prices. Manufacturers were also able to buy consider able quantities of the 1921 clip at practically their own prices, due to the pressure of grow ers’ financial obligations. There was, there- (E) Receipts o f Livestock— C a lve s Cattle Portland ............ Salt Lake City.. . . Seattle ................ Spokane ............ Tacom a .............. Total ............... H ogs Sheep July 1920 July 1921 July 1920 July 1921 July 1920 July 1921 July 1920 9,303 3,055 3,859 2,703 2,183 9,198 4,549 4,283 3,873 2,206 524 63 221 892 207 3Í4 324 146 238 6,905 3,857 5,167 1,731 3,629 13,046 2,754 3,353 3,490 2,595 43,238 7,993 9,706 8,577 9,798 31,246 10,207 9,434 15,943 6,534 21,103 24,109 1,278 2,337 21,289 25,238 79,312 73,364 July 1921 686 and M u les July July 1921 1920 52 128 6 21 39 124 97 273 F) Range in Livestock Prices— H ig h e st and L o w e s t A v e ra g e T o p P rices Per H u n d red w eig h t R e ce iv e d at F iv e Principal M a rk ets D u rin g July. W eek of Fat Steers July S............................$5.60— 7.25 July 11............................6.00— 7.75 July 18............................6.00— 7.75 July 2 5 .......................... 5.50— 7.00 Cow s C a lv e s $4.85— 6.00 5.00— 6.00 5.00— 6.00 4.50— 6.00 $6.00— 9.50 6.00— 9.00 6.00— 11.00 6.00— 11.00 $ 8.45— 9.50— 9.80— 10.30— H ogs L am bs 9.50 11.00 14.25 13.75 $5.00— 7.50 6.50— 8.00 6.30— 8.00 6.00— 7.75 6 fore, little competitive bidding. A possible exception to this last statement was noticed in the case of fine staple wools. There was an apparent scarcity of the finer grades of w ool and competition among purchasers was relatively keen. 2. Adjustm ent of prices to pre-war levels. Prices paid to producers for w ool were ap proximately the same as those prevailing in 1915. There have been numerous sales at prices ranging between 12 and 18 cents a pound, depending upon the grade and fine ness of the w ool and the financial necessities of the seller. Because of the necessity of adjusting w oolgrow ers’ overdrafts on their consignments of last year’s clip, many sales of this year’s w ool have resulted in actual pay ment to the grow er of less than 15c per pound. 3. Shipment of w ool to the Atlantic Coast by way of the Panama Canal. A large propor tion of the wool going to eastern markets, both on purchase by manufacturers’ agents and on consignment, has been shipped by rail to Pacific Coast points and thence by boat through the Panama Canal. Stocks of butter in cold storage in four cities of this district increased only 338,521 pounds during July as compared with an increase of 1,236,429 pounds in June and an Dairy increase of 1,178,542 pounds durProducts ing July, 1920. This decline in the rate at which holdings of butter are being accumulated, contrary to the usual seasonal movement, is attributed to an unusu ally active consuming demand and to small receipts. The wholesale price of 93 score fresh creamery butter at San Francisco rose from 37^4 cents per pound, July 1st to 41^4 cents per pound August 1st. Butter in storage in four cities of this district on August 1st of this year totaled 3,170,786 pounds, a de crease of 1,644,698 pounds, or 34 per cent, from the same date in 1920. A statement of the movement of stocks of cold storage butter dur ing July, 1921, and 1920, and holdings on A u gust 1st, at the four principal markets of this district are shown in table “ G.” The average price paid to milk producers by fluid milk distributors (presented in table “ H ” ), shows a decline of two cents per hun dredweight in the Mountain Section and a decline of eight cents in the Pacific Section, compared with June, 1921, and a decline of 79 cents and 85 cents, respectively, compared with July, 1920. (A ccording to corrected figures received this month, the average price paid to milk producers in the Pacific Section during A g r ic u ltu r a l a n d B u s in e s s C o n d itio n * June, 1921, was $2.82 per hundredweight in stead of $3.07 as stated in our July report.) Reduced prices and a seasonal increase in consumption have quickened the movement of canned salmon into consuming channels and an appreciable reduction of the large Salm on holdover (chiefly pinks and chums or lower grade salmon) from the 192C pack has taken place. On August 1st spot prices of the majority of grades of canned sal mon were 35 to 50 per cent below 1920 open ing prices and the holdover of 1920 pack goods remaining on the Pacific Coast was estimated at 2,000,000 cases or more than 40 per cent of last year’s pack. During the second week of this month a strong domestic and export de mand developed, causing the price of chums to advance from 70 to 90 cents per case and the price of pinks from 80 cents to $1.00 per case. Holdings were reported to have been materi ally decreased during this period of activity. (G) Movement o f Stocks o f Cold Storage Butter— City July, 1921 N et Increase (Pounds) July, 1920 N et Increase (Pounds) A u g. 1, 1921 Holdings (Pounds) A u g. 1, 1920 Holdingi (Pounds 408 162,222 73,382 102,509 271,507 302,731 157,454 446,850 684,366 437,652 1,361,033 687,735 995,72^ 878,18: 1,559,00( 1,382,57: Los A n g e le s... Portland ......... San Francisco. Seattle .............. T otal ........... 338,521 1,178,542 3,170,786 4,815,48< ( / / ) Prices Received by Milk Producers*— July, 1921 Range Sectionf Mountain (5 Mkts.J) .$1.73-$2.65 Pacific (7 M k t s 4 ) . . . . 1.67- 3.65 U. S. ( I l l M k t s j ) . . . . 1.20- 4.70 *A11 prices butter fat. ^ fM oun tain zona. Pacific fornia. ^Beginning which prices which milk is July, 1921 A v erage June, 1921 A v e rage July, 1920 Average $2.21 2.74 2.55 $2.23 2.82 2.41 $3.0( 3.5< 3.3: per hundredweight for milk testing section includes Idaho, U tah, section includes W ashington, 3.5 per cen N evada, and A ri O regon and Cali with this issue the markets are the cities foi are reported instead o f the country stations a bought for these cities. (I) Estimated Pack o f Salmon for 19219 Canneries Operating 1921 1920 District W estern Alaska. Central Alaska.. S. E. A la s k a .. . . Puget Sound— Columbia River. Totals 27 23 25 28 35 80 20 * 11* 18 .............. 113 *Approximate. Pack Estimated 1921 1 ,200,000 Actual 1920 19 600,000 600,000 300,000 300,000 913,00C 1,280,00( 2 ,202 ,00( 167,00( 481,00( 173 3,000,000 5,043,00( F ederal R eserve B a nk of San 7 F r a n c isc o On August 15th one large factor announced opening prices on the 1921 pack. They com pare with 1920 opening prices as fo llo w s: 1920 O pen in g P rice s (per doz.) O n e P ound T all C ans Reds ................................................ Medium R ed s............................... Kings .............................................. Pinks .............................................. Chums ............................................ 1921 O pening Prices (per doz.) $3.25 2.75 3.00 1.50 1.15 $2.25 1.50 1.75 1.15 1.05 Preliminary estimates of the 1921 pack of salmon in the five principal fishing districts on the Pacific Coast place this year’s output at approximately 3,000,000 cases, compared with 5,043,000 cases packed in the same sec tions in 1920. Less than 70 per cent of the can neries which operated last year are open this season and the run of fish has been generally light. However, preliminary estimates will un doubtedly have to be revised, as fishing is still in progress. It is estimated that the pack on Puget Sound will be about twice that of 1920 (167,000 cases) as this is the year in the four-year cycle when the Sockeyes run in the Sound. The run has thus far been light, however, and later esti mates will probably show a reduction in the pack of this district. On the Columbia River, there were floods and disputes between canners and fishermen during May and June, and since July 1st, the run has been below normal. The pack may not be more than 50 per cent of last year’s pack (481,000 cases). Table “ I” (op posite page) shows estimates of the 1920 and 1921 packs of salmon in the five principal fishing districts on the Pacific Coast. Production of lumber in this district, which has been increasing steadily since January of this year, decreased slightly during July. The cut (329,343,000 feet) reported by Lum ber the four lumber associations in this district, was 48,262,000 feet, or 12.7 per cent less than the June cut, and operations are reported to be approximately 65 per cent of normal. Orders and shipments in July also declined compared with last month, due in part to the fact that buyers and shippers are postponing purchases in anticipation of an nounced freight rate reductions which are not (J) Lumber— of Mills reporting . . Cut* ................. Shipments* . . Orders* ......... West Coast Lumbermens* Association July 30 106 189,471 200,157 181,207 *In thousands of feet. Western Pine Manufacturers* Association June 25 July 30 111 44 88,191 58,002 59,650 227,461 236,932 218,280 yet effective. Orders received decreased from 292,190,000 feet in June to 263,416,000 feet in July, or 9.5 per cent, while shipments declined from 318,697,000 feet in June to 286,727,000 feet in July, or 10.0 per cent. MILLIONS OF BOARD fo Eoo MILLIONS, OF BOARD FEET / / N / \ \ / \ v \ \ V 1920 / / \ 192 P rod u ction o f L u m b er in T w e lfth F ederal R e se rv e D istrict as R e p o rte d by L u m b er A s s o c ia tio n s 1920-1921 Lumbermen of this district generally con sider the present outlook favorable, basing their opinions upon the following fa ctors: 1. Anticipated resumption of buying by railroads of the country, which are normally among the principal consumers of lumber. 2. Early and continuous marketing of their crops by farmers, which is expected to stimu late rural consumption of lumber. 3. Increased building operations in the cities of the country, as wages and the prices of building materials decline. 4. Reduced railroad freight rates to mar kets east of the Mississippi River announced July 11, and to take effect as soon as the tariffs can be published. The new rate will be 95 cents instead of $1.06^2 per hundred pounds to the Atlantic Seaboard. 5. Limited stocks of lumber in the hands of distributors. Present buying is largely confined to “ fill-in” orders and it is believed a marked increase in public demand could not be met from dealers’ stocks. 6. An improved export situation. Japan is buying, Australia is showing renewed in terest, and China is taking her normal vol ume of Douglas fir. Comparative figures of cut, orders and ship ments of reporting mills of the four associa tions in this district are shown in table “ J.” CaliforniaWhite and Sugar Pine Manufacturers* Association California Redwood Association -1921— F o u r W e e k s Ending----------------------------June 25 July 30 June 25 July 30 June 25 44 95,891 56,069 51,500 / 7 28,558 13,338 13,039 6 11 11 24,723 12,288 23,123 15,230 9,520 29,530 13,408 14,409 8,001 TOTAL July 30 168 329,343 286,727 263,416 June 25 172 377,605 318,697 292,190 8 A g r ic u ltu r a l a n d B u sin e ss Metal production in this district during the first six months of 1921 was below that of the same period in 1920, and recent previous years, according to reports of the M ining United States Geological Survey. L ow market prices prevailing have caused a substantial reduction in the output of copper, lead and zinc. The greatly de creased production of these metals has caused a corresponding, although proportionately smaller, decline in the production of gold and silver, inasmuch as considerable quantities of the latter metals are extracted from ores mined principally for their copper or lead content. Labor troubles in Nevada mining districts have been a factor in reducing the output there. During June, reporting mining properties in this district which are being operated, pro duced more gold, silver and lead, and less copper, than in the corresponding month last year according to reports received from 12 large mines located in California, Idaho, Utah, Nevada and Arizona. Compared with May, 1921, decreases in the production of copper, lead and gold, and a small increase in the pro duction of silver were reported. O f the mines which are operating at all, reporting gold, silver and lead mines are operating at 100 per cent, and copper mines at 66 per cent of ca pacity. Favorable factors in the present situation are the reduced costs of production, made possible by lower wage scales for mine labor, and reduced freight rates on ore and bullion. Improvement in the industry now awaits re vival of domestic and foreign demand for cop per, lead and zinc. Comparative figures of the output of metal of 12 mines reporting to this bank are shown in the follow ing table : June, 1921 *Copper (pounds). 4,755,463 Lead (p ou n d s)... 13,132,304 Silver (o u n c e s).. 454,129 Gold (o u n c e s )... 30,808 June, 1920 M ay, 1921 5,130,142 10,872,870 278,600 24,521 5,448,669 14,104,001 450,106 31,273 * B lis te r The significant feature of the July opera tions in the oil fields of California was the continued increase in stored stocks of pe- C o n d itio n s troleum, which on July 31st stood at 31,634,179 barrels compared with 29,768,643 barrels on June 30th and 24,406,753 barrels on July 31, 1920. The present figure reprePetroleum sents the largest stock of petrol eum in storage in the state of Cali fornia since October, 1919, the trend now being opposite to that which prevailed last year at this time when stored stocks were being rap idly depleted and a shortage of petroleum products, particularly gasoline, was experi enced. Millions of Barrels Millions of B a r r e l s 30 20 S I OK>EC j T<7C 30 20 <s r Is 340,000 ,v A VE R A< lE ‘lAIL V S HIF¡ r 320 000 310 ooo /' V 300 ooo 290 OOO 280,000 > ■A V Barrels 340,000 /x MT> / 330,000 / V V ~\ f S 300,000 290,000 '\ 1 A 270.000 /■' 270,000 AV ■R.^GE D/HL'I ’ P ÎOI >UCTIO X V 260.000 250.000 240.000 250,000 2IOOOO 200000 , 3 4 . 5 7 8 1919 .o „ ,2 , 2 3 4 * f, 7 s 1920 9 IO 12 , Z 3 4. 1921 6 7 200000 Petroleum Production, Shipments and Stored Stocks (California) 1919-1921 Production was lowered slightly during July, the average daily output being 331,252 barrels compared with 337,625 barrels in June a decrease of 6,373 barrels per day. The sharp upward movement in shipment figures recorded in June was not sustained and the decline in consumption, which began in D e cember, 1920, was resumed. Average daily shipments during July wrere 271,073 barrels and for June, 280,494 barrels, a decrease of 9,421 barrels per day. On August 3rd, the Standard Oil Company of California announced a horizontal reduc tion of 25 cents per barrel in the buying prices of all grades of crude oil at the wells in the producing fields. A similar reduction was made in May of this year and present prices are from 16.9 per cent to 31.2 per cent below the level of July, 1920. The price of gasoline was reduced from 25 to 23 cents per gallon. (K) Petroleum— July, 1921 Production (daily a vera ge )...................... 331,252 bbls. Shipments (daily a vera ge)........................ 271,073 bbls. Stored Stocks (end of m o n th )................ 31,634,179 bbls. N ew W e lls O pened...................................... 76 W ith daily production............................. 19,675 bbls. W e lls Abandoned........................................... 5 June, 1921 337,625 280,494 29,768,643 76 19,965 2 bbls. bbls. bbls. bbls. July, 1920 279,169 310,271 24,406,753 51 21,330 6 bbls. bbls. bbls. bbls. F ederal R eserve Bank of San F r a n c isc o 9 Seventy-six new wells with an initial daily production of 19,675 barrels were completed during July and five wells were abandoned, a net gain of 71 producing wells during the month. Statistics on oil field operations as fur nished by the Standard Oil Company of Cali fornia are shown in table “ K ” (opposite page). Reports received by this bank from eight of the principal power companies in Califor nia, covering their operations during the month of June, indicate that the Electric consumption of electrical energy Power for industrial purposes was 8.7 per cent less in June, 1921, than in June, 1920. The reduction occurred chiefly in agricultural districts, where this year’s more abundant supply of surface water for irrigating purposes, and a reduction in the acreage of crops (especially rice) which re quire large amounts of water, have lessened the need for power to operate pumps. The mining industry of the state is also using less electrical power than one year ago, some mines being closed down and others operat ing at reduced capacity. Other industries combined appear to be taking their usual quota of electrical energy. In southern Cali fornia an increase in the total industrial con sumption of electrical energy has been shown, notwithstanding lessened agricultural de mand. Again comparing June, 1921, and June, 1920, the plant capacity of the reporting companies has increased 18.9 per cent, the plant output 3.9 per cent, the number of industrial con sumers 10.7 per cent and the connected load, or motor capacity, of these consumers 8.9 per cent. Statistics on the electrical power industry of the state of California as reported by eight of the principal power companies are shown in table “ L .” Bureau of Census figures of the results of census of manufactures in the state of W ashington for 1919 and 1914 are shown in table “ M .” These figures exWashington elude the hand trades, buildManufactures m g trades and neighborhood industries and take into ac count only establishments conducted under the factory system. The summary shows a consistent increase at the census of 1919, as compared with that for 1914. (L) Electric PowerT y p e o f Plant (a) H ydro power. . . (b) Steam ............. . . (c) Purchased . . . . Total ................ Plant C a p a city K. V . A . June, 1920 June, 1921 Peakload K. VV. June, 1921 J un e, 1920 509,620 303,295 414,270 268,910 399,548 135,052 56,290 300,160 207,982 26,580 244,495,918 37,764,569 179,533,960 91,873,692 812,915 683,180 652,590* 576,377* 282,260,487 271,407,652 Plant O utput K. W . H . June, 1921 June, 1920 No. of Consumers and Sales: N um ber of C on su m ers June, 1921 June, 1920 38,402 *61,700 K. W . 34,690 in 1921 and 41,655 K . W . in C o n n e cte d L oa d H . P. June, 1921 June, 1920 1,235,854 1,134,654 159,776,640 175,050,601 1920 included in total but not in segregated figures. (M) Washington Manufactures— 1919 4,919 Number of Establishm ents............................................... 150,482 Persons engaged in manufactures.................................. Proprietors and firm m em bers.................................... 4,196 13,354 Salaried em ployees............................................................ 132,932 W a g e earners (average n u m ber)............................. 587,702 Primary H orsepow er........................................................... $553,125,000 Capital ....................................................................................... 225,757,000 Services ...................................................................................... 30,574,000 Salaries ................................................................................... 195,183,000 W a g e s ..................................................................................... 443,202,000 Materials .................................................................................... 809,635,000 Value of Products................................................................. Value added by manufacture (value of product less ’ 366,433,000 cost of m aterials)............................................................... Sales K. W . H . June, 1921 June, 1920 C en su s-------------------------- -—^ 1914 Per C en t o f In crease 1914-1919 3,829 78,448 3,155 8,088 67,205 399,567 $277,715,000 63,207,000 11,504,000 51,703,000 136,609,000 245,326,000 28.5 91.8 33.0 65.1 97.8 47.1 99.2 257.2 165.8 277.5 224.4 230.0 108,717,000 237.1 10 A g r ic u ltu r a l a n d B u s in e s s The dollar value of sales of 30 representa tive department stores and mail order houses in this district during July declined 12.9 per cent compared with July, 1920. H ow Retail ever, present retail prices are reported T rade to average 20 per cent less than in July, 1920, and the value of the aver age sale as reported by 11 stores is 16.3 per cent less than a year ago, indicating that the physical volume of trade continues greater than last year. In July, for the first time this year, the value of sales in Los Angeles was less than in the corresponding month a year ago, a slight decline (1.5 per cent) being reported. The average net increase or decrease (— ) dur ing the past month in value of net sales in the reporting cities of this district, is as fol lows I Seven months ending Los A n g e le s ... Oakland ............ Sacramento . . . Salt Lake City. San Francisco.. Seattle ................ Spokane ............. District ............. — 1.5 — 7.9 — 11.4 — 16.2 — 11.6 — 18.6 . — 22.0 — 12.9 the close of July this year than in July, 1920. The percentage of outstanding orders at the close of July to total purchases during the year 1920 was 10.0 per cent compared with 8.4 per cent in June and 5.4 per cent in January. Collections were characterized by the re porting firms as follow s : Excellent No. of F ir m s .... — — — — — — — 0 M ILLIO N S 17 17 ------------------ 1 9 1 9 Si ly ^ U b A L t i ) 7.0 .4 9.4 5.6 5.0 16.1 9.6 7.2 June, 1921 2.93 2.63 1.89 2.30 Poor 11 M _ E s li July 30, 1920 — 9.8 — 24.3 — 13.8 — 22.8 — 12.5 — 12.4 — 18.0 — 12.6 July, 1921 Fair 13 M ILLION S 19 2 0 i > o)e s r / / The amount of the average sale (cash, charge and C. O. D .) reported by 11 firms was $2.30 in July, compared with $2.52 in June and $2.75 in July, 1920. Follow ing is a state ment of the average sale (cash, charge and C. O. D .) in Los Angeles, San Francisco, Seattle and the district: Los A n g e le s........... $ San Francisco........ Seattle .................... .. District ..................... Good 1 Table “ N ” gives in detail statistics in re gard to sales, stocks and outstanding orders reported by 30 representative department stores and mail order houses in this district. July 30, 1921, compared to July, 1921, compared with July, 1920 June, 1921 C o n d itio n s ........ 1921 S o l e V4 > ** ✓ ✓ N X 1r1 ¡¡11 II It h ¡1 I 1 1 s* % ✓ ✓ 1 9 1 9 S o l e s*"* *** / / / — t July, 1920 $ 2.88 2.77 2.05 2.52 $ 3.85 3.03 2.22 2.75 Value of stocks (selling price) of the re porting firms averaged 18.3 per cent lower at JAN. FEB. MAR. APR.MAY JUNE JULY AUG.SEPT. OCT. NOV. DEC. N e t Sales of 22 Department Stores in Twelfth Federal Reserve District (in M illio n s o f D ollars) (N) Retail Trade Activity— CONDITION OF RETAIL TRAD E DURING JULY, 1921 In Federal Reserve District No. 12 (30 Stores R ep ortin g) Percentage increase or decrease of net sales during July, 1921, over net sales during same month last y ear................................... Percentage increase or decrease of net sales during July, 1921, over net sales during June, 1921.. Percentage increase or decrease of net sales from January, 1921, to July 31, 1921, inclusive, over net sales during same period last year.................................................... Los Angeles Oakland 1.5 — 7.9 -11.4 -16.2 9.8 -24.3 — 13.1 —22X 7.0 — .4 Sacramento — 9.4 Salt Lake City 5.6 San Francisco Seattle Spokane District -11.6 -18.( -22.0 — 12.9 — 12.5 -12.4 -18.0 -12.6 — -16.1 9.6 5.0 — 7.2 F ederal R eserve B ank of San 11 F r a n c isc o The majority of wholesalers report that there has been an increase in the proportion of sales of staple goods to fancy goods during the present year, retailers having sensed the careful buying attitude of the consuming pub lic and made their purchases accordingly. Present prices compared with those of one year ago are substantially lower in all report ing lines of business. W ith the exception of groceries and automobile equipment, includ ing tires, the reported percentage of decline in the price of the particular commodity during the year is less than the percentage of decline in the value of sales, which indicates that the physical volume of merchandise now being sold at wholesale is, on the whole, less than it was a year ago. During the month of July, however, prices were reported as steadier than they have been at any time during the past year. Some further reductions in prices were reported by dealers in hardware and furniture but previous declines in these lines have not been so great as in other classes of goods. Collections were characterized as follows by the reporting firms. Trade at wholesale during July was less in value and probably in volume than it was in July a year ago. Reports to this bank from 185 representative wholeW holesale sale firms in ten lines of business Trade in this district show decreases varying from 17.1 per cent to 50.1 per cent in the value of net sales during July, 1921, compared with July, 1920, in all lines except automobile tires, where an increase of 6.1 per cent was recorded. Compared with June, 1921, the net value of July sales of re porting stores was less in all lines except auto mobile tires, automotive equipment and groceries. The average net increase or dec re a se (— ) in th e v a lu e o f n et sa le s fo r th e ten r e p o r tin g lin es o f b u s in e s s w a s as fo llo w s : July, 1921, compared to July, 1920 June, 1921 — 35.4 Hardware . . . D ry G oo d s. .. — 50.1 Groceries . . . — 20.7 — 17.1 Drugs ............ — 36.7 Shoes ............. Stationery . . . — 39.1 — 26.2 Furniture . . . . Auto T ir e s ... 6.1 Auto Equipment — 17.4 ^Agricultural Implements . . — 46.0 First seven months of 1921 compared to first seven months of 1920 — 13.5 — 14.7 11.8 11.2 1.6 — 32.5 — 34.1 — 26.4 — 15.3 — 32.9 — 21.5 — 33.4 — 20.4 — 23.2 — 2.7 — 51.7 12.0 — — — — 2.9 16.9 3.4 Excellent *Beginning with this issue, figures on wholesale agricultural implement business will be regularly included in the monthly wholesale trade report. Good Fair Poor 11 Statements of increases or decreases (— ) in the value of net sales of reporting wholesale firms during July, 1921, compared with July, 1920, and the first seven months of 1921, com pared with the first seven months of 1920, are shown in table “ O .” No. of Firm s...... 3 51 91 (O ) Wholesale Trade— (la ) Percentage increase or decrease (— ) in net sales for July, 1921, over July, 1920 Agricultural Number of re- Implements porting firms.. 20 Los A n g e le s ... .— 42.1 Portland ........... — 46.6 Sacramento . . . Salt Lake City. .‘ — 34.7 San Francisco.. .— 78.6 Seattle .............. Spokane ........... — 47.1 Tacom a ............. District ................— 46.0 (l b ) 18 — 20.8 — 22.3 — 5.5 — 5.7 — 18.4 — 26.6 — 17.2 Auto Tires 15 25.4 Drugs 9 Dry Goods 12 — 4Ò.0 Ì5.6 3.6 59.0 24.7 6.1 — 23.9 — 23.7 — 17.1 — 36.2 — 50.7 — 58.0 — 50.1 Furniture Groceries Hardware Ü .3 28 — 13.0 — 23.2 — 28.3 — 18.6 — 19.9 — 43.4 — 26.2 — 2 Ò.1 — 27.3 — 20.7 24 — 23.7 — 30.3 — 31.8 — 42.8 — 42.0 — 38.4 — 40.1 — 13.9 — 35.4 15 — 7.6 — 47.0 Shoes 15 — 29.8 — 44.6 — 38.3 — 20.8 — 36.7 Stationery 29 — 29.3 — 38.1 — 33.8 — 49.8 — 45.3 — 31.5 — 29.8 — 39.1 Percentage of increase or decrease (— ) in net sales for January 1, to July 31, 1921, over same period last year Agricultural Auto Implements Supplies Number of reporting firms.. 20 Los A n g e le s ... . — 49.3 Portland ........... ,— 53.0 Sacramento . . . Salt Lake City. !— 53.2 San Francisco. . . — 45.9 Seattle ................ Spokane ............ — 50.7 Tacom a .............. District .............. — 51.7 Auto Supplies — — — — 18 14.2 31.1 19.5 34.4 Auto Tires Drugs 15 — 18.2 9 Dry Goods 12 — 38.0 — 2 2 .7 — 46.3 — 38.5 — 4 0 .3 — 2 9 .1 — 25.0 Furniture Groceries Hardware 15 — 24.3 — 50.6 28 — 15.3 — 33.0 — 18.3 — 33.9 24 — 29.4 — 30.6 — 21.8 — 39.9 15 — 15.6 — 37.8 — 4 3 .2 — 2 3 .7 — 3 0 .0 — 27.8 — 43.5 — 30.3 — 3 3 .6 — 52.6 — 41.1 — 45.4 — 4 4 .2 — 2 3 .2 — 2 0 .4 — Ì5.3 — 34.1 — 3 3 .4 — 3Ò.4 — 25.6 — 26.4 Shoes 29 — 13.9 — 23.2 — 29.4 — 2 7 .6 — 14.5 — 3 2 .5 Stationery — 3 2 .9 — 2 3 .8 — 3 0 .4 — 17.0 — 45.1 — 21.5 12 A g r ic u ltu ra l an d B u s in e s s Reports received from the five customs dis tricts of the Pacific Coast show that total exports during the first six months of 1921 were valued at $134,650,000 comF oreign pared with $290,369,000 in the C om m erce corresponding period in 1920, a decline of 53.6 per cent. During the same period imports showed a decline of 60.5 per cent, having been valued at $87,120,000 in 1921 and $220,815,000 in 1920. W hile a part of these declines in dollar values of our foreign trade may be attributed to fall ing com m odity prices, it is a fact that the volume of trade passing through Pacific Coast ports has suffered a marked reduction, esti mated to be from 25 to 40 per cent. The world-wide trade depression (which has been keenly felt in the Orient and South America) and the depreciated exchanges of most of the countries with which we trade are cited as the underlying causes for this decline. Ship ment from foreign countries direct through the Panama Canal to the eastern seaboard of goods which form erly were shipped to Pacific Coast ports and thence east by rail, has also served to reduce the foreign trade figures of this particular district. T h e value of exports declined steadily from January to May, but a sharp upward m ove ment in June carried figures for that month to the highest point reached in the present year, with the exception of the January fig ure. The value of imports was relatively steady during the period and considering price changes it is probable that there has been an expansion in the volume of import trade dur ing the year. The so-called “ favorable bal ance” of trade of the ports of the district (P ) Exports— I--------------M o n th E n din g-------------- \ C o n d itio n s was $15,366,000 in January, 1921, declined to $2,576,000 in May, and rose to $15,992,000 in June. V a lu e o f Im ports and E x p o rts o f the U n ite d States (in Millions of Dollars) By commodities, there has been, during the first six months of 1921 as compared with the same period of 1920, an increase in the volume (not value) of exports of wheat, barley, dried fruits, canned fruits and in the foodstuffs group as a whole, which forms the m ajor part of the export trade of this coast. Iron and steel shipments have shown a consider able decline. Imports, which normally in clude principally foodstuffs, vegetable oils, and other products of the Orient and Central and South America, and manufactured goods from Europe, have shown differing tenden cies. A general decline is noted in imports of goods from the Orient and Latin America Per G ent In crease or D e cre a s e (— ) June, 1921 o ve r June, 1920 -S ix M o n th s E n d in g June 30, 1921 Jun e 30, 1920 P er C e n t In crea se or D e cr e a s e (— ) F ir s t Six M o n th s 1921 o v er 1920 June 30, 1921 June 30, 1920 L os A n g e le s ...$ 2,343,977 Portland .......... 7,263,262 San D ie g o ......... 199,586 San Francisco. 10,700,847 Seattle ............... 6,516,089 $ 2,088,958 5,705,452 453,030 15,938,263 18,392,975 27.3 — 56.0 — 32.8 — 64.5 $ 11,659,349 28,892,338 1,659,455 56,393,147 36,045,543 $ 10,280,893 21,191,341 4,447,934 127,047,925 127,401,475 13.4 36.3 — 62.6 — 55.6 — 71.7 $42,578,678 — 36.5 $134,649,832 $290,369,568 — 53.6 T o t a l ......... $27,023,761 (Q) Imports— ✓--------------M o n th E n din g-------------- \ June 30, 1921 June 30, 1920 12.2 Per G en t In crease o r D e cre a se (— ) June, 1921 o v e r June, 1920 - S i x M o n th s E n d in g June 30, 1921 June 30, 1920 Los A n g e le s ...$ 592,258 Portland .......... 382,835 San D ie g o .......... 80,474 San Francisco. 6,196,564 Seattle ............... 3,779,317 $ 2,725,442 980,889 519,465 24,574,775 15,981,888 — 78.2 — 61.0 — 84.5 — 74.7 — 76.3 $ 4,869,153 1,789,681 4,684,775 53,410,754 22,365,325 Total ......... $11,031,448 $44,782,459 — 75.3 7,119,688 P er G en t In crea se or D e cr e a s e (—) F ir s t Six M on th s 1921 o v er 1920 £ 5,355,207 4,993,852 6,807,245 116,814,639 86,844,420 — 9.0 — 64.1 — 31.1 — 54.2 — 74.2 $220,815,363 — 60.5 F ederal R eserve B a n k of San 13 F r a n c isc o (excepting sugar and coffee), but the impor tant import trade with Europe has improved during the year. Comparative trade of this coast with cer tain trading areas during the first six months of 1921 and 1920 may be summarized as fo llo w s: industries of this district reductions in wages have now been put into effect or are contem plated, according to reports reW age ceived by this bank during the Adjustm ents past month. Average wage re ductions during the year A ug ust 1, 1920-August 1, 1921, for labor employed in the industries listed, have been as follow s: In creases ( + ) o r d ecreases (— ) in the value o f foreign trade o f this district during the first six m onths o f 1921 com p a red w ith first six m onths o f 1920: E x p o r ts A u s tr a la s ia ............................................... China ........................................................ Japan ........................................................ South A m erica....................................... Europe ...................................................... — — — — + = — — — + Comparative figures of exports and im ports of the principal ports of this district are shown in tables “ P ” and “ Q ” (see opposite page). Unemployment in the Twelfth Federal R e serve District during July was about equal in volume to that of June. Increased demands for labor from agricultural areas Labor were largely offset by reduced em ployment rolls in the mining, lumber ing, fishing and shipbuilding industries. D e spite abundant crops in nearly all sections, harvesting operations have been carried on with less additional seasonal labor than for a number of years past, and the supply of har vest hands continues to exceed the demand. W ith the exception of San Francisco, where the building trades strike is still in progress, there was a slight improvement in em ploy ment conditions in the larger cities of the district. The monthly report of the United States Employment Service of the Depart ment of Labor, based on reports from firms em ploying 500 men or over, shows the follow ing changes in July, compared with June, for the cities included: N u m e rica l in cre a se o r d ecrease (—) in em ploym ent during July com pared w ith Jun e Los Angeles .......... Portland ................... Seattle ........................ San Francisco ........ 677 794 45 — 597 P ercen tage in crea se o r decrease (—) in em ploym ent during July com pared w ith June 3.0 14.7 2.3 — 8.5 Part time employment is still reported by some industrial plants in San Francisco, Oak land, Stockton, Seattle, Spokane and Tacoma. The past year has witnessed a general, al though uneven, reduction of commodity prices. W ages have likewise declined gener ally but irregularly and in most of the principal ........... 25% Lumbering ................................... ........... 33% .. 10 % Oil ................................................... ........... o% t M illing (F lo u r ).......................... ........... 8% M etal Trades (shipbuilding) ............ 10 % . 10 % Building T rad es......................... Public U tilities............................ ........... 20 % * Agriculture .................................. ...........45% Miscellaneous .......................... 1 2 ^ % - 20 % Im ports *N ew employees and common labor now being hired at $1.00 per day less than previous wage ($4.50 per day). t N o reduction possible in majority o f companies until A u gust 31, 1921, due to working agreements entered into between oil companies and their employees in August, 1920. Building permits issued in 20 principal cities of this district during July, numbered 7925 with an estimated valuation of $15,298,698, compared with 6343 permits issued Building in July, 1920, with a valuation of Perm its $16,033,054. Due to declines in the cost of building operations during the past year, the increase of 1582, or 24.9 per cent, in the number of permits is more representative of the actual volume of con struction than would be a comparison of the dollar values of the permits granted. 28 .M01INT VER/^GE 0 . HUNDR: D5 )F D 26 28 \CH 3ERNIT /I 26 \ 24 22 20 24 ! \ 1 \ j V. 18 16 S °- 12 10 -o - \ 'o /U \ \ 18 \ '/ / v 0—-o )6 \ 14 MOUO 0 ■ PEIiMITi MILLIO Û- DOILARS o- \ / °\ v 22 20 / ' I 1 \ 12 / \ y / V 8 6 8 \ 6 IBE.R OF 1■ERMITS 1NTH3US/ 2 4 3 5 192 0 8 y ND5 12 2 3 4 5 1921 6 T B u ilding Perm its Issu ed in 20 P rincipal C itie s, T w e lfth F ed era l R e se rv e D is trict, 1920-1921 O f the 20 reporting cities, 17 show an in crease in the number of permits issued during July, 1921, over July, 1920, and 12 cities an increase in value of permits. Increases are confined to no particular section of the dis trict. A noteworthy feature of the month 14 A g r ic u ltu r a l a n d B u s in e s s was the increased activity in all reporting cities in the Pacific Northwest. Compared with July, 1920, the value of permits issued in July, 1921, increased 118.4 per cent in Seattle, 24.1 per cent in Spokane, 3.4 per cent in Portland, and 1.6 per cent in Tacoma. Building activities in San Francisco and vicinity are still curtailed, due to strike con ditions in the building trades. Answers to a questionnaire circulated by this bank indicate that the construction of moderate priced homes and dwellings con stitutes a large part of present building ac tivity. Further evidence of demand for dwel lings is contained in the report received from several large cities that there is a shortage of apartment house buildings. Comparative figures of the number and value o f building permits issued in the 20 reporting cities of the district are shown in table “ R .” A slight increase in the number of business failures in this district carried July figures to the highest point in the past eighteen months, with the exception of March, 1921. A marked upward movement in the Business amount of liabilities involved also Failures occurred, and disregarding the ab normally large figures of June, 1920, (caused by the failure of one concern), the July figures were the largest in the present readjustment period. Business Failures, Twelfth Federal Reserve District, 1920-1921 N o t e — T he great increase in liabilities in June, 1920, was due to the failure of one concern in Seattle. Washington. Per Cent Increase or Decrease (— ) July, 1921 over July, 1920 CR) Building Permits— N o. Berkeley ........... Boise .................. Fresno ................ L o n g B ea ch .. , L o s A n g e le s ... . . Oakland ............ Ogden ................ , . Pasadena .......... Phoenix ............ Portland ........... Reno ................... Sacramento . . . . . . . Salt Lake City. San D ie g o ......... San J o se.............. San Francisco. Seattle ................ , , Spokane ........... Stockton ........... Tacom a .............. Total ......... . July, 1921 Value N o. C o n d itio n s June, 1921 Value N o. July, 1920 Value 131 61 169 206 2,717 492 48 274 60 1,119 26 175 117 319 64 446 825 217 51 408 $ 161,760 295,342 202,406 516,700 5,503,363 1,162,628 119,040 701,247 110,354 1,446,324 50,500 183,417 363,182 385,138 79,913 1,000,240 2,217,270 180,775 365,218 253,881 162 94 156 249 2,712 533 54 275 54 1,149 22 153 132 360 50 475 850 231 74 416 $ 292,583 118,948 235,505 775,700 6,269,546 1,486,022 96,750 552,318 152,985 1,428,685 115,200 261,450 244,614 799,944 62,255 920,965 919,740 141,505 142,655 433,324 125 45 128 351 2,154 368 21 215 102 791 14 101 78 190 63 364 757 112 80 284 $ 7,925 $15,298,698 8,201 $15,450,694 6,343 $16,033,054 June, 1921 Amount N o. 212,979 112,600 203,460 713,850 5,121,050 1,374,005 34,270 335,294 225,160 1,398,330 24,350 180,665 415,730 261,327 111,381 3,723,623 1,015,620 145,579 174,198 249,583 — 24.0 180.3 — .4 — 27.6 7.4 — 15.4 250.0 109.2 — .51.1 3.4 108.3 1.6 — 12.5 47.5 — 27.9 — 73.1 118.4 24.1 109.7 1.6 — 4.5 (S) Business Failures— N o. Arizona ........................... California ..................... Idaho .............................. Nevada ........................... O regon ........................... Utah ................................. W ashington ................. District .................... 8 .................... 72 .................... 11 .................... 0 .................... 30 .................... 6 .................... 24 ........................... .................... T5I July, 1921 Amount N o. $ 64,800 2,285,031 56,832 0 980,020 133,582 1,016,603 10 66 5 0 21 11 30 $ 216,900 761,186 48,863 0 548,247 48,065 342,656 2 53 0 0 16 0 30 4,536,868 143 1,965,917 101 July, 1920 Amount $ 9,000 365,363 0 0 239,710 0 678,178 1,292,251 F ederal R eserve B a nk of San Failures in the Tw elfth Federal Reserve District numbered 151 in July, compared with 143 in June, and 101 in July, 1920, the per centage increase being 5.6 for the month and 49.5 for the year. Liabilities involved amounted to $4,536,868 compared with $1,965,917 in June (an increase of 130.8 per cent), and $1,292,251 in July, 1920, (an increase of 251.0 per cent). The average failure in the district had liabilities of $30,045 compared with $13,747 in June, 1921, and $12,794 in July, 1920. R. G. D un’s comparative fig ures for the states of this district are shown in table “ S” (see opposite page). Total clearings in 20 principal cities of the district during July, were $1,348,251,000, a decrease of $69,346,000, or 4.8 per cent, from June and of $376,360,000, or 21.8 B ank per cent, from July, 1920. July Clearings clearings are $466,640,000, or 25.6 per cent below the peak of O cto ber, 1920, ($1,814,891,000). The percentage decline in bank clearings during the past year is less than the per cent of decline in com modity prices at wholesale and retail during the same period, and it is probable, therefore, that the physical volume of trade is as great as, or greater than, it was a year ago. D e creased clearings in July of this year com pared with July, 1920, were reported from all cities with the exception of L ong Beach and Pasadena, where increases occurred of 22.9 and 48.6 per cent, respectively. Comparative figures of clearings for the 20 reporting cities are shown in table “ T .” In conform ity with the declining price level during the past year and, in certain localities (T ) 15 F r a n c isc o with retarded business activity, there has been a continuous increase in the percentage of de cline in debits to individual account during each month of 1921 as compared with the corresponding month of 1920. D E B IT S T O I N D I V I D U A L A C C O U N T S (In M illions of Dollars) District January . . . February .. April , ,. .......... June ........... July ............ , ,. 1921 1920 2,141 1,770 2,479 1,865 1,808 2,194 1,691 2,155 2,011 2,695 2,180 2,171 2,761 2,273 IONS W OO 1700 ■"X \ A Vs r 1 \ y s/ 1600 \ I \. A 1500 vV 1500 \ / \ 1400 1400 V \/ 1300 1300 V 1200 1200 ' 2 3 4 ? 6 7 8 9 to '• 12 ■ 2 ? -.5 6 7 Bank Clearings in 20 Principal Cities, Twelfth Federal Reserve District, 1920-1921. (in M illio n s of D o lla rs) Improvement in general credit conditions and the appearance of funds from the market ing of crops have been reflected during the month ending August 15th by Acceptance a steadily increasing demand M arket for acceptances, especially from banks in the agricultural dis trict which have already moved their pro ducts. It is apparent that the idea of includ ing a certain proportion of acceptances in the July, 1921 Total ...................................... *(000 omitted). $ 5,018 11,552 4,889 13,575 15,125 332,929 42,758 6,081 12,885 107,852 3,059 22,777 47,773 11,421 7,208 514,400 116,695 40,289 18,558 13,407 , ,$1,348,251 — 6.7 — 11.97 — 8.03 — 14.45 — 16.73 — 20.5 — 25.6 S M ILL.ION Bank Clearings*— Bakersfield ................................... Berkeley ........................................ Boise ............................................... Fresno ............................................ L on g Beach................................... L os A n g ele s.................................. Oakland ......................................... Ogden ............................................. Pasadena ....................................... Portland ........................................ Reno ............................................... Sacramento .................................. Salt Lake C ity ............................. San D ie g o ...................................... San Jose........................................... San Francisco.............................. Seattle ............................................. Spokane .......................................... Stockton ........................................ Tacom a ........................................... Per Cent Decline June, 1921 $ 5,201 12,115 3,912 13,622 15,215 353,224 41,634 16,775 13,610 121,189 2,845 19,641 49,080 11,438 6,084 531,100 123,958 42,862 19,757 14,335 $1,417,597 July, 1920 $ Per Cent Increase or Decrease (—) July, 1921 over J u ly ,1920 6,153 13,000 22,735 16,377 12,299 337,506 47,431 7,481 8,667 157,540 3,815 26,737 70,265 13,426 10,452 697,500 170,892 52,327 28,000 22,008 — 16.6 — 7.6 — 77.2 — 18.7 22.9 — 1.4 — 8.5 — 18.7 48.6 — 31.8 — 19.0 — 15.3 — 31.4 — 15.3 — 30.0 — 26.2 — 31.7 — 23.0 — 32.1 — 36.3 $1,724,611 — 21.8 16 A g r ic u ltu r a l a n d secondary reserve of banks is meeting with wider favor. Demand from country banks has so far been most active in California, al though there is a grow ing interest in the Northwest. The supply of bills has been somewhat larger, due in part to the renewal of a large block of sugar bills. A s is natural at this season, canned goods have also been the basis of many acceptance transactions. Bills drawn for the purpose of creating dollar exchange have not been a factor in this market. The gradual decline in the bill rate which began in June continued during July and early August, being accelerated by the lowering of the Federal Reserve Bank’s rediscount rate on July 25th to 5yZ> per cent. T w o days later the basic rate on prime ninety-day bills drop ped to 5 % per cent and on July 29th was again reduced to 5 per cent at which rate it now stands (A ugust 15th), for all maturities under 90 days. (The rate for eligible non member bills is per cent.) The bill rate also reflects the extreme ease of the money market in Eastern centers which prevailed towards the close of July, but the subsequent stiffening there has as yet had no effect on the bill market here. Savings deposits in this district (as re ported by 79 banks in the seven principal cities) totaled $739,493,000 on July 15th. If the savings deposits of one bank Savings which closed its doors in June be Deposits deducted from the total as of June 15th, the decrease in savings de posits in the district during the month ending July 15th was 6 tenths of 1 per cent. Note w orthy decreases were reported from Seattle and Los Angeles and an increase from San Francisco. Again allowing for the failed bank, savings deposits on July 15, 1921, were 6.8 per cent greater than on the same date in 1920, all cities reporting an increase except Seattle and Portland. The growth of savings deposits in the seven principal cities in the district is shown in the accom panying table “ U ” and chart. B u sin ess A vera ge M o n th ly Savings D e p o sits in B anks in P rincip al C itie s o f T w e lfth F ed era l R e s e r v e D istrict, 1919-1921 (in M illio n s o f D ollars) On July 27th, the Secretary of the Treasury announced an offering of treasury certificates of indebtedness in two series, both dated and bearing interest from August Government 1, 1921; series T M -2 1922, maFinancing turing on March 15, 1922, with interest at the rate of 5% Per cent per annum ; series B-1922 maturing on August 1, 1922, with interest at the rate of 5^2 per cent per annum. Subscriptions to both series were closed at noon, August 1, 1921. The combined total subscription was $1,030,006,500, of which $376,362,500 was allotted. The Tw elfth Federal Reserve District re ported subscriptions totaling $25,000,000, of which $21,630,000 was allotted by the Secre tary of the Treasury. The heavy subscrip tion indicates the increasing demand on the part of investors for this class of short-term government securities. Loans and discounts of 67 reporting mem ber banks in this district on August 3rd last at $862,470,000 were almost identical in amount with holdings a month ago, July 6, June 15, 1921 July 15, 1920 P e r C e n t In crea se o r D e cr e a s e (— ) July 15, 1921 o v e r July 15, 19 $240,006 73,825 36,507 22,641 322,913 34,539 13,510 $208,337 72,936 37,376 21,609 302,036 37,224 12,557 13.4 1.3 — 1.1 3.2 8.3 — 20.8 6.3 $743,941 $692,075 6.8 ( V) Savings Deposits *— C ities N u m b e r of B anks L os A n g e le s................. Oakland ......................... Portland ........................ Salt Lake C ity ............ San Francisco.............. Seattle ............................ Spokane ......................... Totals .................... *(000 omitted). 14 7 10 10 17 15 6 79 July 15, 1921 $236,393 73,890 36,958 22,295 327,137 29,465 13,355 $739,493 C o n d itio n s F ederal R eserve B a nk of San 17 F r a n c isc o 1921. The only material changes revealed in the reports of these banks on August 3, 1921, were a decline of approximately $6,000,000 (20 per cent) in vault cash, an Reporting increase of $11,000,000 in Member Banks government deposits (as a result of the public offering of Treasury Certificates dated August 1, 1921) and a decline of $15,000,000 (13 per cent) in bills payable and rediscounts with this bank, which on August 3rd last were $77,077,000, compared with $92,540,000 a month ago and $93,134,000 a year previous, (August 6, 1920). A reduction in holdings of bills discounted by $12,600,000 (8 per cent), a decline in Fed eral Reserve note circulation of $9,400,000, (4 per cent), and an increase Federal in gold reserves of $4,300,000 Reserve Bank (2 per cent) were the princi pal changes in the report of condition of this bank on August 10, 1921, compared with the report of July 13, 1921. Progress by member banks in paying off their indebtedness to the reserve bank may be measured by comparing its total holdings of bills discounted on August 10, 1921, ($134,336,000) with the $152,812,000 held a year ago (August 13, 1920) and with the $176,872,000 carried by this bank at the peak of such holdings, December 10, 1920. The amount of Federal reserve notes now in circulation, $227,821,000 compares with $238,949,000 a year ago (August 13, 1920), and $272,548,000 at the peak of December 23, 1920. Since the peak in each case, there has been a 24 per cent decline in holdings of bills discounted and a 5 per cent decline in the amount of reserve notes in circulation. Since August 13, 1920, also, the reserves of this bank have been augmented by $53,000,000 (of which $51,000,000 was gold) to $217,990,000 on A u gust 10th last, an increase of 32 per cent. The bank’s reserve ratio on August 10, 1921, was 62.6 per cent compared with 60.2 per cent on July 13, 1920, and 46.7 per cent on August 13, 1920. Millions M illio n s \ RAL 'ESi•rev : n OTE FE >E 260 INCIRCULAT.C>N / ' "S 1 TOTAL b"l'ls Dl iCOUNT ED "-I SO 60 40 30 -•v 40 1 ... p„ ILLSBOUGHT , 1 MA T — __ 1 July ! Aug. 1Sept 1 Oct Dec 1920 | Jan. | Feb. |March | April | 1921 Maÿ June \ JulV 1 Aug. Federal Reserve Note Circulation, Bills Discounted and Bills Bought in the Open Market, Federal Reserve Bank of San Francisco ( in M illio n s o f D ollars) ( V ) Principal Resource and Liability Items o f Reporting Member Banks in Reserve Cities in Twelfth Federal Reserve District— A u g . 3,1921 *N u m b er o f R ep o r tin g B a n k s ....................................................... 1. Loans and discounts (exclusive of rediscounts): (a) Secured by United States Government O b lig a tio n s.. .$ (b) Secured by Stocks and Bonds other than U. S. Bonds (c) A ll O t h e r ............................................................................................ (See explanatory foot note below concerning item 1 (c) in 6 7 Ju ly 6,1921 A u g . 6,1920 6 7 6 6 23,787,000 $ 24,956,000 146,458,000 146,757,000 692,225,000 691,437,000 $ 35,024,000 144,868,000 963,654,000f 1920) 2. Investm ents: 97,551,000 102,370,000 (a) United States B on d s..................................................................... (b) United States Victory N o te s ................................................... 15,281,000 13,746,000 (c) United States Certificates of Indebtedness....................... 19,059,000 14,425,000 (d) Other Bonds, Stocks and Securities...................................... 168,083,000 173,102,000 (e) United States Treasury N o te s................................................. 4,192,000 2,417,000 3. Total Loans and Discounts and Investments............................... 1,166,636,000 1,169,210,000 4. Reserve Balance with Federal Reserve B ank............................... 72,130,000 73,231,000 5. Cash in V a u lt.................................................................................................. 23,418,000 29,448,000 6. N et Demand Deposits on which reserve is com puted................ 554,128,000 553,589,000 7. Tim e Deposits, including Savings D eposits.................................... 543,137,000 545,327,000 8. Government Deposits ................................................................................ 15,431,000 4,833,000 9. Bills Payable with Federal Reserve Bank: (a) Secured by United States Government O b lig a tio n s... 19,956,000 25,245,000 (b) A ll O t h e r ............................................................................................ 141,000 393,000 10. Bills Rediscounted with Federal Reserve Bank: (a) Secured by United States Government O b lig a tio n s... 3,437,000 3,988,000 ______ (b) A ll Other ............................................................................................. 53,543,000 62,914,000 94,679,000 11,554,000 26,285,000 -0 -0 276,064,000 79,069,000 27,275,000 621,783,000 512,443,000 4,510,000 23,965,000 360,000 4,276,000 64,533,000 *Total resources of reporting banks are approximately 44 per cent of total resources o f all banks, and 67 per cent o f total resources of all member banks in Tw elfth Federal Reserve District. Reporting banks embraceall member banks in San Fran cisco, Los Angeles, Oakland, Portland, Seattle, Tacoma, Spokane, Salt Lake City and Ogden. fP rior to Jan. 1, 1921, this figure included “ all other investments” as well as “ all otherloans.” A fte r that date, “ all other investments” were reported separately as “ other bonds, stocks and securities,” in item 2 (d ). Consequently a figure in 1921 comparable to item 1 (c) in 1920 would be the total o f item 1 (c) and 2 (d) in 1921. COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN FRANCISCO AT CLOSE OF BUSINESS AUGUST 10, 1921 RESOURCES— Gold and Gold Certificates..................................... Gold Settlement Fund— Federal Reserve Board. . Gold with Foreign A gen cies................................... August 10, 1921 July 13,1921 August 13,1920 $ 20,689,000 32,843,000 $ 20,056,000 32,528,000 $ 13,879,000 39,550,000 5,130,000 - 0 - - 0 - Total Gold Held by B ank.......................... $ 53,532,000 $ 52,584,000 $ 58,559,000 Gold with Federal Reserve A g e n t........................ Gold Redemption F u n d.............................................. 152,099,000 9,063,000 150,560,000 7,187,000 95.006.000 10.031.000 Total Gold R e s e r v e s ..................................... $214,694,000 $210,331,000 $163,596,000 Legal Tender, Notes, Silver, etc.............................. 3,296,000 3,372,000 983,000 Total Reserves.................................................. $217,990,000 $213,703,000 $164,579,000 Bills D iscounted: Secured by U. S. Government Obligations. . . . A ll O th er.................................................................... Bills Bought in Open M arket................................... $ 37,047,000 97,289,000 3,057,000 $ 38,082,000 108,852,000 2,229,000 $ 50,405,000 102,407,000 52,224,000 Total Bills on H a n d . . . ............................... $137,393,000 $149,163,000 $205,036,000 U. S. Bonds and N otes............................................ One-Year Certificates of Indebt. (Pittman A c t ). A ll Other Certificates of Indebtedness.................. 204.000 9,880,000 269.000 208,000 9,880,000 1,000 2,632,000 11,203,000 Total Earning A ssets..................................... $147,746,000 $159,252,000 $218,871,000 586.000 494.000 -0 34,459,000 5,808,000 560.000 494.000 231.000 665.000 41,202,000 3,549,000 40,057,000 325.000 $407,083,000 $418,760,000 $424,728,000 $ $ $ Bank Prem ises.............................................................. 5% Redemption Fund Against F. R. Bank Notes Gold A broad in Custody or in Transit............... Uncollected Item s........................................................ All Other R esources................................................... Total R esources................................................ - 0 - - 0 - - 0 - LIABILITIES— Capital Paid I n ........................................................... Surplus ......................................................................... Reserved for Government Franchise T a x ........... D ep osits: Government ............................................................. Member Bank Reserve A ccou n t........................ A ll O th er.................................................................... Total D eposits.................................................. F. R. Notes in Actual Circulation........................ F. R. Bank Notes in Circulation— Net Liability Deferred Availability Item s..................................... All Other Liabilities.................................................. T otal Liabilities................................................ M em o: Contingent Liability on Bills Purchased for Foreign Correspondents. 7,404,000 15,207,000 2,390,000 7,342,000 15,207,000 2,225,000 3.852.000 1.431.000 111,434,000 • 110,782,000 5.017.000 5.816.000 6,783,000 11,662,000 -0 1.227.000 119,035,000 3.301.000 $120,303,000 $118,029,000 $123,563,000 227,821,000 5.709.000 26,423,000 1.826.000 237,217,000 6.535.000 30,509,000 1.696.000 238,949,000 11.070.000 29.748.000 2,953,000 $407,083,000 $418,760,000 $424,728,000 2,589,000 1,472,000 736,000