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MONTHLY REVIEW
OF
B U S IN E S S
C O N D IT IO N S
JOHN PERRIN, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco
Vol. X
San Francisco, California, February 20, 1926
No. 2
S U M M A R Y O F N A T IO N A L C O N D IT IO N S
Industrial activity in January was in slightly
smaller volume than in December, and the dis
tribution of commodities showed a seasonal de
cline. The level of prices remained practically
unchanged.
Production. The Federal Reserve Board’s
index of production in selected basic industries
was about one per cent lower in January than
in December. Output of iron and steel, copper,
and zinc increased, while activity in the woolen
and petroleum industries, and mill consumption
of cotton, declined. The cut of lumber, and
bituminous coal production increased less than
is usual at this season of the year. Automobile
production, not included in the index, was
slightly smaller than in December, 1925, but
considerably larger than in January, 1925. Fac
tory employment changed but little in January,
1926, but earnings of workers decreased con
siderably owing to the closing of plants in most
industries at the opening of the year for in
ventory taking and repairs. The volume of
building contracts awarded in January, 1926,
although seasonally less than in December,
1925, exceeded that of any previous January on
record. Contracts awarded were particularly
large in the New York and Atlanta districts.
Trade. Sales of department stores and of
mail order houses showed more than the usual
seasonal decline in January, 1926, but were
larger than in January of last year. Wholesale
trade declined considerably and was in. smaller
volume than a year ago. Stocks at department
stores showed more than the usual increase in
January, and were about 11 per cent larger
than at the end of January, 1925. Freight car
PER CENT
PER CENT
1922
1923
1924
1925
1926
P R O D U C T IO N I N B A S IC IN D U S T R IE S
W H O L E S A L E PR IC E S
Index of 22 basic commodities corrected for seasonal variation
(1919= 100). Latest figure, January, 120.
Index of U . S. Bureau of Labor Statistics (1 9 1 3 = 100, base adopted
by Bureau). Latest figure, January, 156.
T h o s e d e s ir in g t h i s r e v ie w s e n t th e m r e g u la r ly w ill r e c e iv e it w it h o u t c h a r g e u p o n a p p lic a t io n .
10
February, 1926
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
loadings declined in January, 1926, and the
daily average for the month was approximately
the same as a year earlier.
Prices. Wholesale prices, as measured by
the index number of the Bureau of Labor Sta
tistics, remained practically unchanged from
December to January. Prices of grains, coke,
and paper and pulp increased, while prices of
and in the early part of February the volume
of loans and investments at these banks in
creased considerably. The increase was largely
in loans for commercial purposes, which, after
declining almost continuously from their sea
sonal peak early in October, advanced by more
than $50,000,000 in February. The growth in
commercial demand for credit throughout the
M E M B E R B A N K C R E D IT
M O N E Y RATES
Monthly averages of weekly figures for banks in 101 leading
cities. Latest figures are averages for first three weekly report
dates in February.
W eekly rates in New Y ork money market: commercial paper
rate on 4- to 6-months paper and acceptance rate on 90-day
paper.
dairy products, cotton goods, bituminous coal
and rubber declined. In the first three weeks of
February, there was a decline in prices of
grains and, following the settlement of the
strike in the anthracite region, a drop in prices
of bituminous coal and coke. Price advances
were shown for refined sugar, copper and
petroleum.
Bank Credit. A t member banks in leading
cities, the seasonal decline in the demand for
credit, which began at the turn of the year,
came to an end toward the close of January,
country, together with some increase in cur
rency requirements, was reflected in a with
drawal of funds from the New York money
market and was a factor in the increase in de
mand for reserve bank credit after the end of
January. Reserve banks’ holdings of bills and
securities increased by about $66,000,000 be
tween January 27th and February 17th.
As the result of the withdrawal of funds
from New York, rates on call loans became
somewhat firmer in February. Commercial
paper rates, however, were slightly lower.
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 C O N D IT IO N S
Statistical Summary—
Jan.,
1926
D ec.,
1925
Jan.,
1925
D ec.,
1924
Jan., 1926#
compared with
Jan.,
D ec.,
1925
1925
10.1
Bank Debits— 21 cities*................................................. $3,079,742 $3,230,574 $2,797,011 $2,703,044
148°
155
135°
123°
14.8
Bank Debits— Index N um bersf— 20 cities...........
Building Permits— 20 cities.......................................... ! $29,165,741 $37,071,485 $31,464,205 $31,478,701 -- 7.3
164
147
148
153
0.7
Retail Sales— 32 stores— Index N u m b ersf...........
8.5
Savings Deposits— 69 b an k s*§.................................... $1,146,713 $1,155,008 $1,056,682° $1,054,972°
491,625
576,995
554,303°
492,629° ■— 11.3
Lumber Production— 4 associations— board feet*
615,147
604,622
620,958
606,294
1.7
Petroleum Production^— California— barrels . . . .
483,092
396,709
489,357
530,949 — 18.9
Flour Production— 16 companies— barrels...........
10.2
Reporting Member Bank Loans and Discounts||* $1,180,645 $1,186,206 $1,071,730 $1,040,889
7.9
Reporting Member Bank Deposits||*...................... $1,634,715 $1,633,464 $1,514,817 $1,486,787
$22,555
$25,227
$7,614
$17,747
27.1
Federal Reserve Bank Discounts^*...........................
75.6
75.5
74.0
79.5
5.0
Federal Reserve Bank Reserve Ratiofl....................
— 4.7
4.7
— 21.3
— 9.8
— 0.7
— 14.8
— 0.9
— 17.9
— 0.5
0.1
— 10.6
5.3
*In thousands. tAdjusted for seasonal variations— 1919 monthly average=100. $Daily average production. §Not comparable with
figures published in previous reviews. ||February 10, and January 6, 1926, February 11, and January 7, 1925. flFebruary 17, and
January 13, 1926, February 18, and January 14, 1925. #Percentage increase or decrease(— ). °Revised.
February, 1926
11
FEDERAL RESERVE AGENT AT SAN FRANCISCO
Agricultural Situation
Mild winter weather and ample rainfall were
reported from most parts of the Twelfth Fed
eral Reserve District during the last two weeks
of January and the first weeks of February.
Seasonal measurements of rainfall at midFebruary approximated normal in the import
ant agricultural areas of the district, except in
parts of the Pacific Northwest, where some de
ficiency was reported. As a result of recent
weather changes there has been a measurable
improvement in condition of fall-sown grain
crops, of livestock pastures and ranges, and in
the whole physical aspect of the agricultural
situation.
R A I N F A L L — Twelith District
July 1,1925
July 1,1924
A rizona:
Flagstaff ........................
Phoenix ...........................
C alifornia:
Eureka .............................
Fresno .............................
Los Angeles .................
Red Bluff ......................
Sacramento ....................
San D iego ......................
San Francisco ............
San Jose ........................
San Luis O b isp o ..........
Id a h o :
Boise ................................
Lewiston ........................
N ev a d a :
Reno .................................
O re g o n :
Baker City ...................
Portland ..........................
Roseburg .......................
U ta h :
Salt Lake C ity ............
W ash in gton :
Seattle .............................
Spokane .........................
Julyl
Feb. 16,1926
(Actual)
(inches)
14.7
4.1
Feb. 16,1925
(Actual)
(inches)
15.5
2.6
Feb. 16
(Norm al)
(inches)
16.2
6.6
22.6
5.3
9.6
16.2
10.6
9.4
14.7
11.1
13.9
27.8
4.8
3.3
17.8
11.6
2.4
20.0
7.9
9.7
28.6
6.0
9.9
16.0
12.7
6.4
14.9
9.5
12.6
7.5
7.8
8.2
8.9
7.6
8.4
5.0
4.1
6.7
5.4
21.4
25.7
5.1
28.7
32.1
7.3
30.8
23.5
10.1
9.3
8.5
16.4
8.1
24.2
10.6
24.6
12.2
volume in 1925 than in 1924, although a smaller
acreage was harvested in the later year. Large
yields in Idaho and Utah more than offset a
decrease in production in California, the dis
trict’s remaining important sugar beet grow
ing state.
SU G AR BEETS*
t-----Twelfth District — ^
1925
t----- United States------ \
19251924 19241923 1923
Acreage Planted.
209
Acreage
líarvested' . . . .
187
Production .......... 1,932
Sugar Content ..1 7 .1 4 %
253
201
204
1,575
1 7 .4 0 %
776
187
667
2,034
6,932
1 6 .5 9 % 1 5 .1 2 %
925
817
7,075
1 7 .1 9 %
732
657
6,565
1 5.34%
*000 omitted.
The number of sheep and of milk cows on
farms and ranges in the Twelfth District in
creased during the year ending January 1,1926,
while the number of other cattle (chiefly beef
cattle) and swine declined during the same
period, according to estimates published by the
United States Department of Agriculture. The
figures are given in the accompanying table
together with comparable figures for the
United States as a whole.
LIVESTOCK ON FARMS A N D RANGES*
f— Twelfth District— ^
1926
M ilk Cows .
Other Cattle
Sheep ............
Swine .................
January 1st,
1925
1924
1,401
4,314
12,582
1,198
1,397
4,532
11,984
1,390
1,535
4,652
12,130
1,859
t------- United States------- \
1926
22,290
37,539
40,748
51,223
January 1st,
1925
1924
22,523
39,627
39,390
55,769
24,786
41,720
38,300
66,130
*000 omitted.
Citrus fruit crops in California were slightly
damaged by frost during January. Serious
losses were prevented, however, by prompt use
of orchard heating devices following the re
ceipt, by growers, of warnings of the approach
ing cold weather, as issued by the United
States Weather Bureau.
Estimates published by the United States
Department of Agriculture indicate that the
sugar beet crop of this district was larger in
Livestock of the district generally are re
ported to be in good condition. In the early
lambing sections, particularly California, lamb
ing is proceeding satisfactorily.
In d ustrial Activity
Seasonal declines in general industrial ac
tivity and in volume of employment were re
ported in the Twelfth Federal Reserve Dis
trict during January. Available statistical and
non-statistical evidence indicated that both in
dustrial activity and volume of employment
were at approximately the levels of a year ago.
Value of building permits issued in 20 prin
cipal cities of the district declined 21.3 per cent
during January, 1926, as compared with De-
(A ) Agricultural Marketing Activity—
Monthly
t-------- Exports--------- t----------- Carlot Shipments-------- »
Livestock Receipts
Wheat*
Barley* Apples*
at Eight Markets in 12th District
Portland and
San
12th
Orangesf Lemonsf Cattle
Puget Sound Francisco Dist.
Calif.
Calif.
and
(1000 bu.) (1000 bu.) (cars)
(cars)
(cars)
Calves
Hogs
Sheep
January,
1926..............................................
Decem ber,
1925..............................................
January— 5-year average ...........................
(1919-1923)
Cumulative
2,219
1,103°
1,995
529
673°
583
2,823
4,206
3,779$
r--------------------— Crop Year
10,115
9,993
41,529
(10.1)
(21.8)
(76.3)
T o January 31, 1925.................................... 16,076
6,775
34,020
(24.0)
(29.7)
(79.1)
Five-year average to January 3 1 .......... 17,823
8,937
39,926$
_____ (1919-1923)
(15.4)
(22.2)
(78.8)
T o January 31, 1926....................................
3,380
4,310
3,273
644
672
650
---------------------- >>
11,099
(21.8)
10,769
(22.4)
9,359
(19.8)
1,755
(11.7)
1,965
(17.1)
1,478
(13.1)
121,342
119,935
105,125{{
225,562
234,920
237,016||
155,741
172,372
188,609||
Goltf Storage Holdings^
12th District
Butter Eggs
(1000 (1000
lbs.)
1,743
2,164
930ff
cases)
11
78
4ÏÏ
t------------ Calendar Year ——
121,342
225,562
155,741
126,301
316,990
171,656°
105,125|[
237,016(1
188,6098
Figures in parentheses indicate percentage of new crop only. *Season begins July 1st. fSeason begins November 1st. $Four-year
average (1923-1926). §At end of month. ||1921-1925. 111922-1926. "Revised. November, 1925, wheat exports published in the
January, 1926, Review should have read 1,057 instead of 1,179.
12
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
cember, 1925, and was 7.3 per cent less than in
January, 1925. The usual seasonal decrease
from December to January is estimated at 22.8
per cent. Large gains in value of permits issued
in San Francisco and Seattle during January,
1926, as compared with January, 1925, were
more than offset by decreases in Fresno, Los
Angeles, and Portland. The January figure re
ported by Los Angeles was the lowest monthly
figure reported for that city in four years. If
figures of Los Angeles be eliminated from the
total of the 20 cities, gains of 9.5 per cent and
9.4 per cent are shown for January, 1926, as
compared with December, 1925, and January,
1925, respectively.
The United States Bureau of Labor Statis
tics’ index number of building materials prices
stood at 178 during January, 1926, compared
with 177 in December, 1925, and 179 in Janu
ary, 1925. The Aberthaw index of the total
cost of labor and building materials employed
in the construction of a reinforced concrete
factory building remained at 195 in January,
1926, compared with 197 in January, 1925.
During January, 1926, lumber production at
reporting mills of four associations in this dis
trict was less than during December, 1925, and
January, 1925, by 14.8 per cent and 11.3 per
cent, respectively, and was smaller in volume
than in any month since February, 1923.
Volume of new orders received during the
month was 2.8 per cent less than volume of
orders booked during December, 1925, but was
10.8 per cent greater than in January, 1925.
Orders received during January, 1926, exceeded
shipments, which in turn exceeded production,
so that stocks of lumber held by mills de
creased and unfilled orders increased.
LUM BER A C T IV IT Y *
Jan., 1926 Dec., 1925 Jan., 1925 Dec., 1924
(board feet) (board feet) (board feet) (board feet)
Production ........................... 491,625
576,995
554,303t
492,629f
643,419
623,259f
572,645f
Shipments ............................ 604,924
654,124
573,619f
6 34,115t
Orders ................................... 635,691
Unfilled O r d e r s ................. 476,856
404,969
462,630t
467,784f
N o. of M ills R ep o r tin g ..
179
175
1831
183t
*A s reported by four associations, 000 omitted except in case of
number of mills reporting. fR evised.
S o u rce: N ational Lum ber M anufacturers Association.
(B) Building Permits—
Berkeley ......................
Boise .............................
Fresno .........................
L ong Beach ............
Los Angeles ............
Oakland ......................
Ogden ...........................
Pasadena ...................
Phoenix
...................
Portland ......................
Reno .............................
Sacramento ...............
Salt Lake C ity ..........
San D iego .................
San Francisco
San Jose ......................
Seattle ........................
Spokane ......................
Stockton .....................
Tacom a ......................
District
..................
January, 1926
Value
No.
$
943,339
299
22,458
28
75,176
85
814,450
430
6,973,252
3,236
2,895,253
914
15,800
9
1,295,207
241
397,980
111
1,985,660
944
43,700
21
457,312
195
137,346
48
1,252,953
626
5,153,504
786
391,445
134
834
5,003,660
163,381
92
156,190
82
192
987,675
9,307
$29,165,741
January, 1925
Value
No.
$
810,251
284
14,381
29
103
758,008
1,240,010
406
11,171,162
3,908
1,214
2,850,970
11
51,600
257
878,465
115
341,158
2,942,410
1,090
21
97,740
592,479
238
42
128,200
752
1,868,228
875
3,403,623
116
219,325
859
2,715,790
84
99,065
101
273,690
292
1,007,650
10,797
$31,464,205
February, 1926
During January, 1926, average daily produc
tion of petroleum in California decreased
slightly as compared with December, 1925, but
was 1.7 per cent higher than in January, 1925.
Indicated consumption increased during Janu
ary, 1926, but was less than production, and
stored stocks reached a new high point of
127,374,984 barrels on January 31st.
PETROLEUM —California
Indicated
Average
Stored
Average
Daily
Stocks at
Daily
Consumption
End of
Production (Shipments)
Month
1926.
1925.
1925.
1923*
..
..
..
..
(barrels)
615,147
620,958
604,622
858,700
(barrels)
609,338
589,085
530,688
t
^ New W ells—N
Daily
Produc
tion
Number
Opened
(barrels)
127,374,984
127,194,894
100,121,136
t
(barrels)
33,548
22,761
21,286
139,960
73
55
62
93
*Peak of production, f Comparable figures not available.
Source : Am erican Petroleum Institute.
Figures of national production of non-ferrous
metals follow :
N O N -FE RR O U S M E T A L S —National Production
Jan., 1926
Copper (lb s.) (m ine pro
duction) ..................................142,628,000
Silver (o z.) (commercial
bars) .........................................
5,401,000
Zinc (tons) ( s la b ).................
56,389
Dec., 1925
Jan., 1925
138,356,000
144,544,000
4,937,000
53,794
5,374,000
50,386
Seasonal decline in flour milling activity con
tinued during January, 1926. Output of 16
representative milling companies of the dis
trict, which report regularly to this bank, was
approximately 18 per cent smaller in volume
than during either December or January, 1925.
As compared with the five-year (1921-1925)
average for the month, production during Janu
ary, 1926, showed a decline of 28.1 per cent.
Millers’ stocks of flour increased during Janu
ary, but on February 1st were 13.6 per cent
smaller than the five-year average of stocks
held on that date. Reported holdings of wheat
(C) Employment—
t--------Cahfonaia--------V
No. of
No.
Employees —>
No.
of
Jan.,
Dec.,
of
Industries
Firms 1926
1925 Firms
All Industries.......... 697 144,511 149,279
105
( - 3 .2 )
— —... - N
No. of
<— Employees —»
Jan.,
Dec.,
1926
1925
17,392
18,565
( - 6 .3 )
Stone, Clay and
Glass Products.
43
7,237
(— 2.0)
7,387
5
209
(— 9.5)
231
Lum ber and W o o d
M anufactures . .
118
25,041
(— 8.4)
2,381
(— 2.1)
27,328
47
4
14,212
( — 3.6)
870
(— 7.2)
14,748
2,432
13
938
Clothing, M illinery
and Laundering.
60
7,624
(— 1.5)
7,740
8
535
(— 3.4)
554
Food, Beverages
and T o b a c c o ...
152
22,847
(— 7.4)
24,674
32
1,146
(— 29.4)
1,623
W ater, Ligh t and
Power .................
5
8,947
9,247
(— 3.2)
68,372
68,542
(— 0.2)
12
2,062
Miscellaneous . . . .
1,929
9
420
471
(6.9)
(— 10.8)
^Includes the following industries: metals, m achinery and con
veyances ; leather and rubber g o o d s ; chemicals, oils and
p a in ts; printing and paper goods.
Figures in parentheses represent percentage changes from D e
cember.
O ther Ind ustries*. 294
February, 1926
FEDERAL RESERVE AG EN T AT SAN FRANCISCO
at the mills decreased 21.2 per cent during
January, but on February 1, 1926, they were
larger than the five-year average holdings on
February 1st.
F L O U R M IL L IN G *
Five-Year
Average
Jan.,
1921-1925
Jan., 1925
551,718
489,357
Jan., 1926
D ec., 1925
O utput ( b b l s . ) . . . .
396,709
483,092
Stocksf
556,007
Flour ( b b l s . ) - . .
446,027
412,192
2,731,217
4,022,593
W h eat ( b u .) ____ 3,169,868
* A s reported by 16 companies,
f A s of the first day of the following month.
516,283
2,889,217
General Business and Trade
General business activity in this district con
tinued at relatively high levels during January.
The volume of trade decreased seasonally dur
ing the month, but was larger than in January,
1925.
Debits to individual accounts (bank debits)
at banks in 20 principal clearing house centers
declined slightly during January, 1926, but the
decrease was less than the usual seasonal de
crease for that month. This bank’s index of
bank debits, adjusted for seasonal variations,
advanced from 148 in December to 155 in Janu
ary, 1926 (1919 average=100). In January,
1925, it stood at 135.
INDEX NUMBERS
13
Trade at retail, as reported by 32 department
stores in seven principal cities of the district,
was 49 per cent smaller in value during Janu
ary, 1926, than during December, 1925. This
decrease compares with a usual seasonal de
cline of approximately 44 per cent from De
cember to January. This bank’s index of de
partment store sales, adjusted for seasonal
variations, stood at 148 in January, 1926, 164 in
December, 1925, and 147 in January, 1925.
Stocks of goods held by reporting stores in
creased 1.3 per cent in value during January,
and on January 31, 1926, were 4.6 per cent
greater in value than on January 31, 1925. The
indicated stock turnover, 2.8 times per year in
January, 1926, compares with an indicated
turnover of 5.2 and 2.9 times per year in De
cember, 1925, and January, 1925, respectively.
INDEX NUM BER S
Index of 32 Stores in 7 cities (1919 monthly average=100). Latest
figures, January, with adjustment, 148; without
adjustment, 130.
D E P A R T M E N T S T O R E S A L E S — Index Numbers
(1919 Monthly Avera^e=100)
Seasonal Adjustment
Oak
Los
Angeles land
BANK D E B IT S -T W E L F T H D ISTRICT
Index for 20 principal cities, Phoenix, Arizona, not included, (1919
monthly average=100). Latest figures, January, with
_____
adjustment, 155; without adjustment, 158.
1919.
1920.
1921.
1922.
1923.
1924.
1925.
1925.
1925.
1925.
1925.
1926.
*Fitted to monthly averages for years 1919-1925, inclusive, by
method of least squares.
(D) Bank Debits*Berkeley .................................. .
Boise ........................................
Fresno ......................................
L o n g Beach ............................
L o s A n geles ..........................
Oakland ..................................
O gden .......................................
Pasadena ...............................
Phoenix ..................................
Portland .................................
Reno .........................................
Sacramento ..........................
Salt Lake C ity ........................
San D iego .............................
San Francisco .....................
San Jose ................................
Seattle ......................................
Spokane ..................................
Stockton .................................
Tacom a ....................................
Y akima ...................................
District
............................. .
*000 omitted.
January, 1926
$
21,714
15,534
39,469
55,779
884,893
167,449
32,921
41,205
27,590
167,646
9,379
35,320
79,848
65,892
1,053,360
28,115
206,479
56,466
30,753
46,881
13,049
$3,079,742
January, 1925
$
20,759
13,906
31,322
54,332
818,585
146,962
28,268
38,377
27,663
153,573
8,055
44,889
74,568
52,904
919,228
27,890
196,406
53,996
27,921
44,713
12,694
$2,797,011
.
.
.
.
.
.
.
.
.
.
.
.
71
126
142
138
164
213
203
193
238
230
361
210
77
113
108
87
109
115
119
133
178
145
268
124
San
Fran
cisco
Salt
Lake
City
77
118
109
102
115
119
115
130
148
153
235
113
76
92
97
77
87
86
91
113
139
122
191
86
87
133
124
115
130
135
130
140
137
148
146
128
92
112
117
93
105
104
111
114
117
115
123
104
Spo
kane
Dis
trict
75
93
72
64
75
76
78
107
116
102
177
75
65
89
82
70
75
74
69
100
131
98
157
70
74
111
109
100
117
133
129
141
170
159
255
130
100
124
96
85
100
102
105
98
105
104
112
99
91
123
114
97
105
104
96
97
98
93
104
97
85
127
124
114
133
151
147
153
158
161
164
148
Seattle
asonal Adjustment
Jan.,
Jan.,
Jan.,
Jan.,
Jan.,
Sept.,
O ct.,
N ov.,
D ec.,
Jan.,
1919.
1920.
1921.
1922.
1923.
1924.
1925.
1925.
1925.
1925.
1925.
1926.
.
.
.
.
.
.
.
.
.
.
.
.
75
133
149
146
173
224
214
223
232
231
239
221
90
132
127
102
128
135
139
140
164
143
160
145
iue of sales of 167 wholesale firms in
eleven lines of business decreased seasonally
during January, 1926, but was 1 per cent greater
14
M O N T H L Y REVIEW OF b u s i n e s s
than in January, 1925, increased sales of six of
the eleven reporting lines offsetting decreases
in the remaining five lines. The wholesale price
level was 2.5 per cent lower during January,
1926, than in January, 1925.
sale, prepared by the United States Bureau of
Labor Statistics, stood at 156.0 for January,
1926, compared with 156.3 for December, 1925,
160.4 for August, 1925, the recent high point,
and 160.0 for January, 1925. All of the groups
comprising the index, except fuels, building
materials, and miscellaneous commodities
showed price declines during January, 1926,
During November and December, 1925, and
January, 1926, prices of agricultural and of nonagricultural commodities moved together and
the purchasing power of farm crops remained
unchanged at 87 (August, 1909-July, 1914,
monthly average=100). This was in contrast
to the movement of these two series during
September and October of 1925 when prices
of agricultural commodities declined and prices
of non-agricultural commodities were un
changed, the result being a decrease in pur
chasing power of farm products from 93 in
August, 1925, the highest point reached since
June, 1920, to 87 in November, 1925.
Decline in prices of agricultural commodi
ties, excepting the grains, was general during
January, but early in February grain prices
participated in the downward movement. The
weekly average price for May contract wheat
at Chicago ranged from $ 1.7 3 ^ to $1.76 on
February 5, 1926, compared with a range of
from $1.76 to $1.79^4 on January 5, 1926. On
February 16, 1926, May contract wheat was
quoted at $ 1.6 6 ^ -$ 1 .6 8 ^ which compares with
quotations of $1.83-$1.87^4 on February 16,
1925.
Prices of cattle and lambs at Chicago con
tinued to decline and prices of hogs continued
to advance during the month. The weekly
average price of hogs at Chicago advanced to
$12.80 per 100 pounds during the week ending
February 6, 1926, an increase of $1.40 over the
average ($11.40) reached during the week end
ing January 6, 1926. Prices of sheep advanced
slightly during January.
W H OLESALE TRADE
Percentage increase or decrease (— )
!
(------------in Value of Sales------------ N
Jan., 1926 Jan., 1926 D ec., 1925
compared compared
compared
N o. of
with
with
with
Firms
Jan., 1925 D ec., 1925 D e c.,1924
*
*
*
Im plem ents.
Agricultural
A u tom obile Supplies
Autom obile T i r e s f .............
D rugs .......................................
D ry Goods ...........................
Electrical Supplies ..........
Furniture ...............................
Groceries ...............................
Hardw are ...............................
Shoes .......................................
Stationery .............................
12
19
6
15
9
16
21
18
11
24
— 11.9
— 25.3
9.3
11.8
— 32.6
— 16.3
1.6
3.7
4.6
— 19.1
— 3.8
— 14.0
7.4
— 4.7
— 3.2
7.1
— 5.9
9.1
8.2
— 0.5
5.8
— 18.7
6.0
— 4.6
17.5
22.2
— 5.2
7.7
12.7
9.6
*Tem porarily not available.
fT h ese figures are probably in
fluenced by the discontinuance by certain of the larger com
panies of “ spring dating” sales, or the practice of advancing
credit on sales made in autumn months until M arch, April,
and M ay of the following year.
On January 31, 1926, savings deposits at 69
banks in seven principal cities of the district
were 0.7 per cent smaller in amount than on
December 31, 1925, but 8.5 per cent larger than
on January 31, 1925.
Jan.31, 1926t
compared with
Jan.
Jan. Dec.
31,
31,
31,
1925*
1925
1925
$351,429§
12.0 — 0.2
9 4,633§
5.3 — 1.1
53,132§
2.8 — 0.1
5.7
4.1
29,493
436,366
7.6 — 1.4
71,944
9.3 — 0.4
19,685 -— 0.7 — 2.3
S A V I N G S D E P O S IT S
Number
Jan.
of
31,
Banks
1926*
$393,515
L o s Angeles . . 13
OaklandJ . . . .
7
99,651
7
Portland|| . . . .
54,630
Salt Lake City 8
31,177
San Francisco. 14
469,585
78,616
S e a t t l e ............... 14
19,539
6
Spokane ..........
Total II
*000 omitted.
one bank
Oakland
published
Dec.
31,
1925*
$394,181
100,796
54,681
29,935
476,445
78,971
19,999
February, 192t
CONDITIONS
69 $1,146,713 $1,155,008 $1,056,682§
8.5 — 0.7
fPercentage increase or decrease (— ). ¿Includes
in Berkeley which was formerly a branch of an
bank.
§Revised.
||Not comparable with figures
in previous Reviews.
Prices
That stability in the general price level which
characterized the year 1925, continued during
January and early February of 1926. The
index of prices of 404 commodities at whole
(E ) Commodity Prices—
Commodity
W holesale Prices (U . S. Bureau of L abor) 1 9 1 3 = 1 0 0 ......................................
Purchasing Power of Farm Products (U . S. Department of A griculture)*
H o g s ................................W eek ly average price at C hicago.....................................
Lam bs ............................. W eek ly average price at C hicago.....................................
W h ea t ............................. Chicago contract price for M ay w heat.........................
Cotton ............................. M iddling U plands— W eek ly range of spot quotaW o o l ................................Average of 98 quotations^at B oston.
Sugar ................................Beet granulated f. o. b.
.W in esa p s, medium to large extra fancy f.
Apples ...............
Prunes
Raisins
..............
..............
February 5,1926
156.0
87
$9.65
12.80
14.50
1 .7 3 ^ -1 .7 6
One Month Ago
156.3
87
$9.40
11.40
16.00
1.76—1.795^2
One Year Ago
160.0
88
$9.25
10.60
18.20
1.85—1.9454
20.02 -2 0 .3 4 0
77.870
5 .3 5 0 t
1 9.82-20.000
77.570
5.100
2 3 .7 5 -2 4 .5 5 0
102.040
6.050
box
lb.
1.75
.0 9 - .0 9 ^
1 .75-2.0 0
. 0 9 - .0 9 ^
2.75
. 1 0 - .1 0 ^
lb.
lb.
lb.
oz.
lb.
.0734
13.8220
9.2550
67.7950
8.3040
31.32
13.8660
9.3100
68.8890
8.5650
30.26
Unit
100 lbs.
100 lbs.
100 lbs.
bu.
lb.
lb.
lb.
o. b.
.S ize 4 0 /5 0 in 25-lb. boxes f. o. b. California............
.T hom p son Seedless Bulk in 25-lb. boxes f. o. b.
Copper ............................ Electrolytic monthly average at N ew Y o r k . . . .
Lead ................................. M onthly average at N ew Y o r k ..................................
Silver .............................. M onth ly average at N ew Y o r k ...................................
Zinc ..................................M onthly average at St. L o u is................................
Lumber (S o ftw o o d )..W e e k ly Index United S ta te s t....................................
.0 7 3 4
.0 77/ 8
14.7090
10.1690
68.4470
7.7380
31.68
*Ratio of farm prices (August, 1909-July, 1914=100) to wholesale prices of non-agricultural commodities (1910-1914=100).
tFebruary 17, 1926. $As published by “ The Lumber Manufacturer and Dealer.”
February, 1926
15
FEDERAL RESERVE AG EN T A T SAN FRANCISCO
Cotton prices fluctuated little during Janu
ary, but the range of prices for spot middling
uplands cotton at New Orleans from January
29th, to February 4th (20.02^-20.34^), showed a
slight advance over the range of 19.82^-20.00^
during the week ending December 31, 1925. A
year ago during the week ending February 5,
1925, quotations ranged from 23.75^ to 24.55^.
An average of 98 wool quotations on the Bos
ton market stood at 77.87^ on February 5th, a
slight advance over the average (77.57^) re
ported on January 5, 1926, but - a decline of
24.17^ from the average price of 102.04^
reached on February 5, 1925.
The price of refined beet sugar at San Fran
cisco advanced slightly during January and
at $5.55 per hundred pounds on February 1st
was $0.45 higher than on January 1st. On
February 1, 1925, the price stood at $6.05. On
February 17, 1926, refined beet sugar was
quoted at $5.35 per hundred pounds, a decline
of $0.20 from the figure quoted on February 1,
1926.
Monthly average prices for copper, lead and
zinc were 0.3 per cent, 0.6 per cent, and 3.0 per
cent lower, respectively, during January, 1926,
than during December, 1925. Average prices
for copper and lead were 6.0 per cent and 9.0
per cent lower, respectively, and the average
price for zinc was 7.3 per cent higher in Janu
ary, 1926, than in January, 1925.
the early part of February, normal seasonal
movements. On February 10, 1926, these loans
amounted to $1,181,000,000, and were $109,000,000 or 10.2 per cent larger than a year ago.
Investment holdings of reporting banks in
creased, and their borrowings from the Re
serve Bank decreased during the month, evi
dence of an abundance of available funds.
R E P O R T IN G M E M B E R B A N K S * — Twelfth District
(In millions of dollars, percentage changes in parentheses.)
Condition
t------------ Changes from-------------s
Feb. 10,
One Year
One Month
1926
Ago
Ago
T otal L oans ...................... . 1,181
909
Comm ercial Loans .........
272
Loans on Securities........., .
467
Investm ents ......................, .
T otal Loans and In vest
ments ............................... . 1,648
N et Dem and D e p o s it s ... .
804
B orrow ings from Federal
Reserve B a n k ...............
14
—
—
+
+
6
7
1
10
(
(
(
(
0.5)
0.7)
0.4)
2.1)
+ 109 (10.2)
+ 62 ( 7.3)
+ 47 (21.0)
+ 26 ( 5.8)
+ 4 ( 0.2)
— 3 ( 0.4)
+ 135 ( 8.9)
—
1 ( 0.1)
— 10 (41.6)
+
4 (40.6)
*Total resources o f reporting banks are approxim ately 50 per
cent of total resources of all banks, and 75 per cent of total
resources of all m em ber banks in T w elfth Federal Reserve
District. R eportin g banks em brace m em ber banks in Los
A ngeles, Oakland, O gden, Portland, Salt L ake City, San
F rancisco, Seattle, Spokane, and Tacom a.
There was a seasonal decrease in demand for
credit at the Federal Reserve. Bank of San
Francisco during the five weeks ending Febru
ary 17, 1926, and holdings of all classes of bills
MILLIONS OF D OLLARS
300
T O T A L R E S E R V E S /^
i
Banking and Credit Situation
Changes in the banking and credit situation
in the Twelfth Federal Reserve District dur
ing January and early February have been
largely seasonal in character. Current bank
statements revealed a sound credit position and
general activity in business.
MILLIONS OF DOLLARS
20 0
F E D E R A L R lE S E R V E
C IR C U L A T IO H
NOTE
B IL L S
D IS C O U N T E D *
100
/
Vv
' '
IN V E S T M E N IT S
1922
1923
1924
1925
1926
R E S E R V E B A N K C R E D I T — T W E L F T H D IS T R I C T
Figures for Federal Reserve Bank of San Francisco, as of last W ednes
day of each month. Latest figures, January 27.
and securities declined. Currency demands
also decreased seasonally during the period,
and volume of Federal reserve notes in circu
lation was less by $8,000,000 on February 17th
than on January 13th. As a result of the above
movements the bank’s holdings of reserve cash
increased from $282,000,000 to nearly $294,000,000 and the reserve ratio rose from 75.6 to
79.5.
M E M B E R B A N K C R E D I T — T W E L F T H D IS T R I C T
Figures for 67 member banks in leading cities, as of last Wednesday
of each month. Latest figures, January 27.
Total loans of reporting city member banks
declined during January, and increased during
F E D E R A L R E SE R V E B A N K O F SA N F R A N C IS C O
(in millions of dollars, percentage changes in parentheses.)
C on
dition /■
-Changes from—
Feb. 17,
One Month
One Year
1926
Ago
A go
T otal Bills and Securities.
Bills D iscounted .................
U nited States Securities.. .
Bills B ough t ........................
Total Reserves ....................
T otal D eposits ....................
Federal Reserve N ote
C irculation ........................
91
23
45
22
294
181
—14 (13.8)
3 (10.6)
— 5 ( 9.6)
— 7 (23.4)
+ 11 ( 4.0)
— '11
+ 5
+ 6
— 21
189
— 8 ( 4.0)
— 6 ( 2.9)
+ 4 ( 2.0)
(10.5)
(27.1)
(16.0)
(48.6)
+ 22 ( 8.0)
+ 15 ( 9.0)
@FedFRASER