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£*r-N O T TO B E R ELEASED FOR P U BLIC A T IO N BEFO RE T H E AFTERNOON OF JANUARY29,1921 A g r ic u l t u r a l a n d B u sin e ss 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 V o l. V . S a n F r a n c is c o , C a lifo r n ia , J a n u a r y 1 6 , 1 9 2 1 IN A L estimates of the yields of the prin F duction cipal crops in this district indicate that pro during 1920 was approximately the equivalent of the record yields of 1919, although a slightly smaller acreage was har vested in 1920 than in 1919. The production per acre during 1920 averaged larger than it did in 1919. W eather conditions The throughout the district during the past M onth month have been generally favorable to the growth of Fall-sown grain, and the copious rains in all parts of the district save Southern California and Arizona have both aided the growth of crops and filled res ervoirs, thus indicating that water supplies for next season will be adequate. In the moun tains, heavy, well packed snowfalls are ex pected to prevent a recurrence, during 1921, of the shortage of hydro-electric power w^hich occurred in the late summer of 1920. The mild and open winter in the Pacific Northwest has continued to favor the livestock men, and where, as in sections of the intermountain, region, feeding has become necessary, hay is cheap and abundant. Demand is still very light for the cotton crop and the w ool clip of this district, approxi mately 90 per cent of the former and 70 per cent of the latter still being in grow ers’ hands or held for them on consignment in ware houses. The output of lumber in the district during December touched the lowest point in the year, as did also the amounts of orders received and shipments made. This inactivity is in large measure responsible for the slightly abnormal amount of unemployment existing in the Pacific Northwest. Reductions in wages, which in this district have lagged behind simi lar reductions in the East, occurred during N o. 1 December when cuts varying from 10 to 20 per cent wrere made in different sections. Decem ber building operations were fewer in number, but greater by 5.8 per cent in value than they were in November. Production of copper in the district was sub stantially curtailed during December, several mines having been shut down, while others reduced their operations to 50 per cent of capacity. In the gold fields many of the deep mines are closed entirely and those which are operating are doing so at from 50 to 70 per cent of capacity, although gold dredges report no curtailment. Retail trade during December was approxi mately the same in volume of actual sales transactions as it was in December, 1919, although 4.3 per cent less in value of sales reported by 18 representative department stores. The wholesale trade generally reported December activity as less than that of Novem ber, 1920, or December, 1919, but the year’s sales for 1920 were larger in all lines than they were in 1919. W eather conditions during the past month have been generally favorable to the agricul tural interests of the Twelfth Federal Reserve District. As a result larger and W eather better crops of winter sown and Crop grains and increased yields of C onditions fruits are in prospect for 1921. This condition is in direct con trast to the winter of 1919-1920 when the protracted dry spell in the southern states of the district aided in lowering yields, and the severe cold weather in the northern and interior states caused considerable damage to fruit trees and consequent reduced yields. The Pacific Northwest, including Oregon, W ashington and Northern Idaho has so far 2 A g r ic u ltu r a l experienced an exceptionally open winter. In Oregon there has been little snow or severe cold. Rainfall in the western part of the state has been 55.3 per cent greater than last year, to the corresponding date, and 21.6 per cent greater in the eastern part of the state. The increased precipitation has been especially beneficial to the dry farming grain and range country in Eastern Oregon and this benefit will more than offset any losses which may occur due to drowning out of field crops in the western part of the state. A t most, not more than two per cent of the seeded area would be affected by the latter contin gency. W ashington reports an unusually large amount of fall plowing, a mild winter with frequent rains and light snows, and a seven per cent increase in the acreage sown to winter wheat. The wheat has been growing contin uously, due to the mild weather prevailing, and was well covered with snow before any possible frost injury could strike it, so that it is now amply protected until Spring. Simi lar conditions prevail in Northern Idaho where the mildest and wettest winter in several years is now in progress. A ll reports from the Northwest characterize crop conditions as “ excellent,” “ exceptional” or “ best in several years,” and state that there have been no kill ing frosts in the fruit grow ing sections. and B u sin ess C o n d itio n s In the Intermountain region, including Utah, Nevada and Southern Idaho, weather conditions have been good, fall plowing is progressing satisfactorily, and crops are reported as doing well. Cold, stormy weather during the latter half of December retarded outdoor activities, but the first two weeks in January were milder and plowing was resumed in a number of areas. Rain and snow has been plentiful, except in Southern Nevada, and winter grain and forage and the desert ranges are in favorable condition. Arizona and Southern California have not shared in the increased rainfall of the district. In the dry farming areas of this section, the soil is too dry to cultivate and fall and winter sown seed is germinating slowly. The citrus belt has not been visited by any killing frosts and smudge fires in the orange and lemon groves have been lighted only on occasional cold nights. Northern California has been sharing in the wet winter of the other coastal states, and although farm operations have been delayed by the softness of the ground, seeding is now progressing rapidly and the earlier seeded wheat and barley is showing a good stand and a thrifty growth. No damag ing frosts have occurred and the unirrigated fruit areas are in better condition than they have been for several years. The snowfall in the Sierra Nevada mountains has been heavy (A) Crop Estimates—Twelfth Federal Reserve District— Acreage ( 0 0 0 omitted) 1920 1919 Wheat (Spring) ............... 2,605 Wheat (Winter) .............. 2,864 Wheat (All) ................... 5,470 Barley ........................... 1,597 Oats .............................. 1,125 Corn ............................. 312 Rice* ............................. 162 Hay .............................. 5,430 C o tto n ........................... 370 Beans ............................ 300 Potatoes ......................... 263 Sugar B e e t s ................... 292 Hops ............................. 27 Apples (Total) ................. — Apples (Commercial) ........ Pearst ........................... — Peaches§ ....................... — T o t a l s ................................................ 1 5 ,3 4 8 Yield per acref 1920 1919 2,579 16.1 3,373 20.3 5,952 18.3 1,351 25.8 1,120 39.6 297 33.3 155 60.0 5,398 2.4 213 .44 420 9.7 255 150.0 240 9.7 24 1,356.7 — — — — — — 1 5 ,4 2 5 14.8 18.5 16.9 30.5 34.6 31.7 60.0 2.3 .53 12.2 126.3 8.7 1,156.6 — — — — Production! (0 0 0 omitted) 1920 1919 Average Price December 1 1920 1919 Total Farm Yalue Basis Dec. 1 Pric® ( 0 0 0 omitted) 1920 1919 42,173 38,166 $ 1.44 $ 2.11 $ 55,807 $ 80,381 58,059 62,399 1.66 2.12 82,349 131,025 100,232 100,565 1.66 2.12 138,156 211,406 41,134 40,205 1.11 1.42 40,540 56,609 44,398 38,711 .83 .97 31,724 36,602 10,382 9,427 1.31 1.66 12,874 16,674 9,720 9,300 1.21 2.67 11,761 24,831 13,164 12,344 17.64 20.40 224,725 242,565 161 112 .30 .47 24,150 26,320 2,925 5,120 3.70 4.42 9,713 22,290 39,445 32,222 1.17 1.57 42,361 50,197 2,839 2,092 12.46 12.05 35,374 25,209 36,630 27,759 .35 .77 12,821 21,497 27,372 44,800 — — — — 19,230 32,307 1.57 1.70 30,191 54,922 6,568 8.543 2.37 2.22 15,566 18,965 15,188 22,354 2.25 1.87 34,173 41,802 $ 6 6 4 ,1 2 9 $ 8 4 9 ,8 8 5 * 8,500,000 b u s h e ls o f 1920 c ro p m a y b e lo s t d u e t o r a in d a m a g e . + Y i e ld p e r a c re a n d p ro d u c tio n fig u r e s f o r h a y in t o n s ( 2 ,2 4 0 p o u n d s ); c o t t o n in b a le s (500 p o u n d s ); s u g a r b e e t s ir t o n s (2,000 p o u n d s ); h o p s in p o u n d s ; c o m m e r c ia l a p p le s in b o x e s ; a ll o t h e r s in b u s h e ls . $ P r ic e s a s o f N o v e m b e r 15 e a c h y e a r . $ P r ic e s a s o f O c t o b e r 15 e a c h y e a r . F ederal R eserve Bank of San and is well packed, assuring a good supply of water for irrigation and power purposes, while the heavy rains in lower altitudes have filled reservoirs in excess of levels customary at this date. The total farm value of 15 of the prin cipal crops of the Twelfth Federal Reserve District in 1920, based on the December 1 price, is estimated at $664,129,000 C rop or $185,760,000 less than the P roduction value of the same crops in 1919 and Values when their estimated value was $849,889,000. Low er prices on all products except sugar beets, peaches, and pears account for this decrease in value, as the yields of all crops average approximately the same as the record yields of 1919, despite a slightly smaller acreage (15,348,000 acres in 1920 and 15,425,000 acres in 1919 for 12 crops on which acreage figures are available). Increased production per acre is reported for all crops with the exception of barley. The dry season in California, which is the largest producer of barley in this district, was respon sible for the decrease in the per acre yield of that grain. A table showing the estimated acreage, yield per acre, production and farm value of 15 of the principal crops of the district appears on the preceding page (table “ A ” ). The 1920 pack of canned fruits and vege tables in the State of California totaled 16,639,809 cases, 4,115,113 cases less than the previous year and 596,748 cases Canned less than in 1918. The pack of F ru its and fruits was 11,382,863 cases, a deVegetables crease of 2,313,540 cases com pared with 1919, and the pack of vegetables was 5,249,946 cases, 1,801,573 cases less than in 1919. Several reasons are given by canners for this reduction in the size of the pack in 1920. As a natural outcome of the financial and mar keting conditions which prevailed during the year, especially in the latter half of 1920, the larger operators adopted a conservative policy and restricted their output, and the smaller operators were unable to finance themselves on their previous large scale, when faced with a slow, declining market. Other reasons assigned are the high price o f sugar at the time when canners were contracting for their seasonal supply, the unsettlement, cau tion and day-to-day buying in the wholesale grocery and jobbing trade, the over-stocked condition of foreign markets, and the inabil ity of the canners to accumulate adequate surplus stocks of tin cans at the time when 3 F r a n c isc o they needed them. Figures on the pack for 1920, 1919 and 1918, including all grades and sizes, are shown in table “ B.” In the Twelfth Federal Reserve District 78 millers reported that their mills were oper ating at 26.7 per cent of their capacity during December, 1920, compared with M illin g 34.7 per cent in November, 1920, and 88.9 per cent in December, 1919. The total output of the reporting mills during the month of December was 399,692 barrels, and most of this flour was consumed within the district. A table showing the December production of the reporting mills by states, and the percentage of mill capacity in opera tion this year and last year is shown on page 4 (table “ C” ). The lack of export demand, cautious domes tic buying, and the increased railroad freight rates, which, it is alleged, hinder competition with middle western mills in Southern and Eastern markets, are the reasons assigned for the heavy curtailment of operations in 1920 as compared with 1919. Reports from 26 of the largest mills in the district show stocks of wheat on hand on January 1, 1921, as 3,051,589 bushels, com pared with holdings of 4,350,495 bushels on (B) Canned Fruits and Vegetables— 1920 Cases Fruits: A p p le s........ Apricots ..... Blackberries . Cherries ..... Grapes ....... Loganberries . P e a r s......... Free Peaches. Cling Peaches Plums ........ Strawberries . Raspberries . . Other Fruits. . 9,041 2,312,020 161,359 647,977 114,886 14,267 1,184,288 1,547,687 5,205,511 164,740 5,525 Totals ..... Vegetables: Asparagus ... Beans (String) Peas ......... Spinach ..... Tomatoes ... Tomato prod ucts ........ Other Vege tables ....... Totals ..... Combined T o t a ls ..... 1919 Cases 1918 Cases 15,562 134,245 4,395,204 114,349 460,614 104,446 11,708 1,071,687 1,962,700 5,096,249 280,261 22,123 233 42,584 167,705 2,233,314 119,111 360,090 99,068 48,992 811,950 1,393,595 3,122,458 148,577 2,002 4,015 432,860 11,382,863 13,696,403 8,943,737 1,024,813 99,269 366,679 685,228 1,858,822 1,031,269 154,278 191,564 476,866 3,809,979 902,236 155,123 265,970 833,019 885,906 1,809,805 382,116 501,657 1,267,713 5,249,946 7,051,519 8,285,820 16,632,809 20,747,922 17,229,557 — (Other Vegetables) 3,884,973 4 A g r ic u ltu r a l and B u sin ess C o n d itio n s January 1, 1920, a decrease of 1,298,906 The Pacific Rice Growers Association has al bushels. The same mills report stocks of flour ready milled 500,000 bags of rice under its toll on hand on the same date as 587,877 barrels milling plan, and this rice is being held for a compared with 418,301 barrels the previous price of $5.25 a hundred pounds. There has year, an increase of 169,576 barrels. been plenty of rice available outside of the A s Decreased wheat stocks are not general sociation to meet current demands. throughout the district, however, as the major Favored by good weather, but hampered by ity of the reporting mills located in the Pacific a slight shortage of pickers and lacking the Northwest have substantially increased hold incentive of an active demand for the product, cotton picking and ginning in Ariings at this time as compared with last year. zona and California has proceeded This is apparently partly due to the small flour Cotton slowly, but is now nearing com ple output and partly to increased buying during the past month. W heat sales at country points tion in most districts. On January first 65,000 in the latter part of December were more bales of Arizona-Egyptian (Pim a) cotton had numerous than heretofore, and considerable been ginned in Arizona and 10,000 bales had movement was reported at prices which would been picked and were waiting to be ginned. net the grower from $1.40 to $1.45 a bushel Approximately 20,000 bales remain to be picked and the majority of this cotton should on number one hard white wheat. In California, 162,000 acres of rice were find its way to the gins during the month of carried through the 1920 season to harvest January. In the California cotton districts picking and time. The estimated yield per acre was 27 bags (100 pounds each), or a total ginning is not so far advanced and in the north R ice yield of 4,374,000 bags, compared to ern end of the Imperial Valley it is estimated that one-half of the crop is still in the fields. 4,185,000 bags gathered from 155,000 acres in 1919. The progress of harvesting and On January first, 46,593 bales of California’s warehousing the 1920 crop has been unsatis 150,000 bale crop (including 75,000 to 85,000 factory due to the continued wet weather in bales grown in Lower California (M ex ico), November and December. Approximately 40 which are ginned in California) had been per cent (1,750,000 bags) of the total crop has ginned. The demand for cotton is still light and been cut and threshed and either sold or placed in storage. The remaining 60 per cent prices are below the levels which growers are is still in the field and more than one-third of inclined to accept. It is estimated that 90 this remainder has not yet been cut. Some of per cent of the cotton crop of this district is this rice is in good condition and will be cut still in the hands of the growers or held on and threshed whenever the fields dry out suffi consignment in eastern storage centers. ciently to permit the resumption of harvesting Some of the long staple cotton was contracted operations. It is reported that much of it will for by tire companies and will eventually be be badly rain damaged, however, and in some areas may be a total loss. The estimated damage is placed as equivalent to 20 per cent Toial Contracted of the crop (874,800 bags), including allow (D) Cotton— Acreage Acreage ances for deterioration as well as actual loss. Total Arizona- ArizonaAcreageEgyptian Egyptian The price of California fancy Japan rice for immediate delivery was $4.25 a hundredweight Arizona ....................... 225,000 200,000 44,000 f.o.b. San Francisco at the close of Decem California ......................145,20043,000 33,690 ber, as compared with a price of $12.75 a hun dredweight for the same rice in January, 1920. Twelfth D istric t........... 370,200243,000 77,690 (O Milling— ^ °* Reporting December November December Output California ........... Oregon .............. Washington ........ Idaho ................ Utah .................. 8 28 35 5 2 11 33 33 7 2 138,984 62,292 189,336 9,080 — Twelfth District.... 78 86 399,692 barrels barrels barrels barrels barrels November Output Per Cent f— M ill Capacity in Operation — ^ December November December 1920 1920 1919 188,779 barrels 34.1 42.8 99,146 barrels 20.7 32.9 224,894 barrels 26.1 30.7 14,295 barrels 29.4 32.2 (Included in California Figures) 527,114 barrels 26.7 34.7 92.0 86.0 88.5 90.0 88.9 F ederal R eserve Bank of San 5 F r a n c isc o moved at a minimum price of 60 cents per pound. The table on the preceding page shows the estimated acreage of Arizona-Egyptian (long staple) cotton grown under con tract, as compared with the total estimated acreage of all kinds of cotton grown in the district and the total estimated acreage planted to Arizona-Egyptian cotton (table “ D ” ) : In addition to the 77,690 acres which were grown under definite contract, the tire com panies financed the planting and cultivation of 33,000 acres distributed throughout the cotton grow ing areas, at the rate of $25 an acre, with an option, but no definite contract to purchase the crop. A comparative statement of the receipts of livestock and purchases for local slaughter at the five principal markets of Livestock this district during the month of December, 1920, is given below in tables “ E ” and “ F ” Range, feed and moisture conditions con tinue favorable in practically all sections of the Twelfth Federal Reserve District and livestock is generally reported as thriving. In the Pacific Northwest there has been little snow or severe weather and stockmen have not had to buy much winter hay or feed. In the Intermountain country there is a layer of snow over most of the winter feeding area and cold weather has made considerable feed ing necessary in many sections. Hay is plenti ful, however, and the price is low. In Cali fornia green feed is abundant except in a few Southern counties. In the latter section and in Southern Arizona, water has been scarce for some time and livestock conditions are only fair. Cold weather prevailed in North ern Arizona during December and some feed ing has been necessary. The snow has re plenished springs, streams and water holes and stock is benefiting accordingly. Receipts of all kinds of livestock at the stockyards of the district were lighter in December, 1920, than in December, 1919. The peak of the heavy marketing movement seems to have passed and fewer unfattened animals, young stock and breeding animals, appeared for sale. A renewed interest in swine breed ing is also being manifested and in the Pacific Northwest there have been numerous inquiries for brood sows. W ith only an average supply of animals on all markets, and a good demand, trading was active during December and prices were generally maintained at November levels. Top steers brought from $7.00 to $9.00 a hundred weight and top cows ranged from $0.75 to $1.75 a hundredweight below these prices. The price of hogs declined sharply in late Decem ber, but rallied quickly and is still $1.00 per hundredweight over the prevailing price in middle western markets, where top hogs are selling at approximately $10.00 per hundred weight. The sheep market held its own easily in the face of light receipts and top lambs con tinued to bring $8.00 to $10.00 a hundred weight. (E) Receipts o f Livestock— Cattle 1920 1919 1920 1919 1920 Horses and Mules Sheep 1919 1920 1919 1 9 2 0 19 1 9 7,594 10,732 4,549 6,417 3,981 5,316 4,299 8,100 1,968 1,280 850 1,443 13 208 332 189 133 1,965 411 110 10,947 15,218 3,091 7,694 12,450 14,188 3,690 5,468 3,624 3,831 7,054 15,962 14,930 38,653 7,957 13,596 5,471 4,862 1,351 3,462 93 ___ 40 109 75 28 81 296 — — Totals ............ ........ 22,391 31,845 1,596 4,058 33,802 46,399 36,763 76,535 289 433 Portland .............. Salt Lake City........ Seattle ................ Spokane ............... T a co m a ................ ........ ........ ........ ........ ........ Hogs Calves (F) Purchases for Local Slaughter— Cattle Portland ....................... Salt Lake City.................. Seattle .......................... Spokane ......................... T a co m a .......................... 1920 1919 4.159 2,239 3,838 2,334 1,968 4,529 1,908 5,092 3,292 1,280 Totals ......................14,538 16,101 Calves 1920 Hogs 1919 654 1,136 9 140 189 332 117 696 411 110 1,380 2,414 1920 Sheep 1919 4,705 8,165 1,044 4,692 12,290 13,896 2,733 4,557 3,624 3,831 24,396 35,141 1920 3,212 5,205 7,957 1,849 1,351 1919 8,873 5,131 13,596 875 3,462 19,574 31,937 s A g r ic u ltu r a l pared with last season, is not readily ascertain able in the absence of information as to the ac tual number of sales consummated during De cember of each year. Only four of the depart ment stores reporting supplied the latter statis tics. Three of these show a slight increase in the number of sales made during December, 1920, as compared with the same month of 1919, while one reports a small decrease. Current prices are generally stated to be 10 to 30 per cent lower than they were in December, 1919, and it is prob able that the retail trade during the holiday season of 1920 was approximately the same in volume of actual transactions as it was in De cember, 1919. The attitude of the buying public is still generally characterized as “ careful.” O f the reporting department and mail order houses 5 per cent characterized collections as “ excellent” in December, as compared with 25 per cent in November, and 50 per cent reported them “ good” in December as compared with 20 per cent in November. The following table gives in detail the statis tics in regard to sales, stocks, and outstanding orders, which were supplied by the eighteen re porting department stores (table “ K ” ) : and B u sin ess C o n d itio n s Reports from 133 representative wholesale firms in eight lines of business in this district indicate that the value of net sales during De cember, 1920, was less than the W holesale value of December, 1919, sales in Trade all lines save stationery, and drugs, where increases occurred, of 13 per cent and 2.9 per cent respectively. The percentage decrease reported by dealers in hardware was 17.9 per cent, in dry goods 27.8 per cent, in groceries 19.6 per cent, in shoes 40 per cent, in furniture 37.5 per cent, and in automobile tires 5.8 per cent. The year’s business, however, as measured in the com parison of net sales during each of the two years 1920 and 1919, was larger for every line during 1920 than it was in 1919. Reports from all lines state that prices during the month continued downward, 23 of the firms reporting the reductions as “ slight” and 4 per cent advising that prices were stationary. Pres ent prices are reported as averaging 5 to 30 per cent lower than they were a year ago except in the furniture line, in which the trend is not de fined, roughly half of the furniture firms report ing prices higher and the other half reporting (K) Retail Trade Activity— CO N D ITIO N OF R E T A IL T R A D E D U R IN G DECEMBER, 1920 In Federal Reserve District No. 12 (18 Stores Reporting) Percentage increase or decrease of net sales during December, 1920, over net sales during same month last year.. Angeles Los Francisco San Salt Lake Spokane City Seattle Sacramento District 11.5 9.1 2.3 - 4.3 62.9 48.7 38.4 54.1 — 11.1 8.6 14.6 7.0 5.0 19.6 — 12.3 — 12.2 12.7 — 3.6 .3 — 45.4 — 14.7 — 22.5 — 3.6 — 22.4 — 23.1 — 14.3 Percentage of average stocks close each month this season (commencing July 1, 1920) to average monthly net sales during same period...................... 432.5 434.3 413.7 458.5 601.4 490.5 490.7 Percentage outstanding orders close of December, 1920, to total purchases during year 1919.......................... 10.6 4.3 1.6 13.7 — 3.8 Percentage increase or decrease of net sales during December, 1920, over net sales during November, 1920..... 49.5 50.2 62.1 Percentage increase or decrease of net sales from July, 1920, to December, 1920, inclusive, over net sales during same period last year................... 28.5 8.7 Percentage increase or decrease of stocks at close of December, 1920, over stocks at close of same month last year..................................... — 29.7 Percentage increase or decrease of stocks close of December, 1920, over stocks at close of November, 1920.... — 18.7 .05 2.6 5.8 F ederal R eserve Bank of San 9 F r a n c isc o them lower. Stationery dealers advise that their prices are 20 per cent higher than they were a year ago. O f the reporting firms, 48 per cent state that collections were “ good” in December as com pared with 43 per cent thus designating them in November, and 40 per cent reported them “ fair” as compared with 43 per cent in Novem ber. Following are statements of percentage in crease or decrease in the sales of reporting wholesale firms during December, 1920, as com pared with December, 1919, and November, 1920, (table “ L ” ) : Outside of California, unemployment continues to be in excess of what is normal for this time of the year. In Portland 11,000 men are un employed compared with a normal of Labor 5,000; in Spokane 2,500 compared with a normal of 1,500, and in Ne vada the excess of unemployment among the miners, as compared with last year’s figures, is 3,000. In such centers as Salt Lake City and Spokane, immediately adjacent to the agricul tural communities, the resumption of outdoor work in the Spring is expected to absorb all the present surplus of labor. In different localities during December reduc (L) Wholesale Trade— (la) Percentage of increase or decrease in net sales during December 1920, over December, 1919 No. of reporting firms....... Los Angeles................... San Francisco................ Seattle ........................ Portland ....................... Tacoma ....................... Spokane ....................... Salt Lake City........... Sacramento ................... District ...................... (lb) Hard ware Dry Goods 22 — 21.3 — 20.4 — 17.7 .3 — 41.2 — 18.9 — 48.7 — 13.8 ----— 17.9 13 2.1 — 35.9 — 47.4 — 26.4 — — .5 — 45.5 — ----— 27.8 Grocceries 29 — 10.5 — 21.2 — — 20.1 — 25.7 — 17.3 — 27.6 — 20.3 ----— 19.6 9 — 10.2 — — 19.6 — — — — ----2.9 Shoes Sta tionery Fur niture 15 — — 28.3 — 64.4 — 70.1 — — — — ----— 40.0 15 20.2 — 81.6 9.3 — 6.1 — — ----13.0 18 — 57.9 — 44.3 12.5 — 41.0 — 32.4 — 36.8 — 54.0 — ----— 37.5 Auto Tires 15 — 8.9 — 13.3 80.7 — — — 3.6 — 48.2 — ----— 5.8 Percentage of increase or decrease in net sales, January 1st to December 31, 1920, over same period previous year No. of reporting firms....... Los Angeles................... San Francisco................ Seattle ......................... Portland ....................... Tacoma ....................... Spokane ....................... Salt Lake City................ Sacramento ................... District ...................... (lc) Hard ware Dry Goods Groceeries 22 30.2 26.5 12.8 23.4 13 30.3 26.3 20.8 13.9 — 32.1 14.6 — ----24.2 29 17.4 12.8 — 11.4 10.7 17.8 20.7 16.5 ----17.1 1 1 .0 34.9 2.4 12.4 ----24.8 Drugs 9 — 23.5 — 17.5 — — — — ----23.8 Shoes 15 — 7.4 — 7.5 — 21.9 — — — — ----3.7 Sta tionery Fur niture 15 34.4 — 46.6 28.4 — 34.1 — — ----46.2 18 14.8 42.0 16.8 16.7 31.1 — — — .----17.9 Auto Tires 15 5.6 17.3 — 6.2 — .— 2.9 — 15.3 — ----2.2 Percentage of increase or decrease in net sales for December, 1920, over November, 1920 Hard ware Dry Goods Groceries 22 No. of reporting firms....... 5.8 Los Angeles................... — 12.5 San Francisco................ — 1 1 .0 Seattle ........................ — 8.4 Portland ....................... Tacoma ....................... . — 16.6 Spokane ....................... — 12.3 Salt Lake City................ — 9.4 Sacramento ................... . — 20.1 ----— 11.2 District ...................... 13 — — 37.9 — 65.1 — 30.0 — — 6.7 — 35.1 — ----— 46.7 29 — 12.8 — 30.9 — — 26.3 — 19.0 — 17.4 — 47.7 — 21.0 ----— 17.8 Drugs Drugs 9 — — 5.4 — — 15.1 — — — — ----— 5.6 Shoes 15 — — 12.5 — 25.5 — 41.1 — — — — ----— 19.2 Sta tionery Fur niture Auto Tires 15 -16.6 — 38.4 32.6 0.0 34.6 — 18 — 34.3 28.3 — 2.1 — 6.2 — 24.4 — 15 45.2 76.0 500.0 — — ----28.9 — -----. — 16.7 ___ _ 95.0 87.5 — ----71.8 10 A g r ic u ltu r a l tions varying from 10 per cent to 20 per cent were made in wages. There has been part time operation of some plants and reduction in the personnel employed by others. There have been no strikes or labor disturb ances during the month. Although a new high record for production o f petroleum in California was established in December, 1920, shipments were again in ex cess of production and the steady Petroleum depletion of stored stocks, which was arrested last month, has been resumed. The average daily output of 324,933 barrels was 12,851 barrels greater than the average daily output during November, 1920, this being the fourth successive month in which a new high record for production has been established. Consumption increased more than proportionately however and the average daily shipments (335,967 barrels) were 11,034 barrels in excess of daily production. Following are the statistics furnished by the Standard Oil Company of California (table “ M ” ) : The effect of recent successive monthly de clines in the total value of the foreign commerce and B u sin ess C o n d itio n s of the ports of this district is now reflected in the totals for the years 1920 and 1919, and statistics for the first eleven months of each year show that the 1920 exports Foreign decreased 13.3 per cent as comCommerce pared with those of 1919, and that imports fell off 4.8 per cent. D e cember exports and imports at San Francisco and W ashington (Seattle), the two principal ports of the district, each show decreases of over 50 per cent compared with November figures. At the bottom of this page are com parative figures of exports and imports for the five ports of this district (tables “ N ” and “ O ” ). N o new contracts were announced during De cember by American shipbuilding yards on the Pacific Coast. During November there were de livered three freighters totalShipbuilding ing 30,600 tons for the United States Shipping Board, and four tankers totaling 32,400 tons for private ac count. Contracts for the construction of freight ers for the Shipping Board are being completed by some yards, only two companies having ex- (M) Petroleum— December Production— Daily Average......... Shipments— Daily Average........... Stored Stocks— End of Month..... New Wells Opened.................... With Initial Daily Production. Wells Abandoned....................... 324,933 barrels 335,967 barrels 22,240,271 barrels 58 16,625 barrels 9 November 312,082 310,899 22,582,304 47 29,520 9 October barrels barrels barrels 305,102 324,896 22,545,026 47 12,395 4 barrels barrels barrels barrels barrels (N) Exports*— Month Ending Nov. 3 0 Nov. 30 1920 1919 San Francisco.......................... 14,386 Los Angeles............................. 1,605 Oregon ................................. 4,576 Washington ........................... 7,688 San Diego............................... 18 District ........................... 28,273 % In crease or Decrease Eleven Months Ending Nov. 3 0 Nov. 3 0 1920 1919 % In crease or Decrease 29,265 1,580 4,323 16,933 39 — 50.8 1.5 5.8 — 54.6 — 53.8 209,315 16,550 55,750 184,355 473 211,355 9,509 41,810 274,946 371 — 0.9 74.0 33.3 — 32.9 27.4 52,480 — 46.1 466,433 537,991 — 13.3 (O) Imports*— Month Ending Eleven Months Ending % In erease or Decrease Nov. 30 1919 % In crease or Decrease San Francisco.......................... 9,790 Los Angeles............................. 669 O re g o n .................................. 284 Washington ........................... 6,786 San Diego............................... 43 22,359 339 754 14,346 44 — 56.2 67.6 — 62.3 — 52.6 — 2.3 205,465 8,509 7,873 129,938 845 218,359 2,871 2,883 146,304 505 — 5.9 296.3 276.5 — 11.6 67.3 D istric t.............................17,572 37,902 — 54.0 352,630 370,668 — 4.8 Nov. 30 1920 *000 omitted. Nov. 3 0 1920 Nov. 30 1919 F ederal R eserve Bank of San 11 F r a n c isc o tensive construction of this character ahead of them. Following are comparative figures for the first of December, November and October, 1920, as furnished by the Pacific Marine Review (table “ P ” ). December business failures were more numer ous than those o f any month during the past two years and their liabilities were second in amount to the total of June, 1920, which Business was unusually high on account of Failures the failure of one large concern in Seattle. The increase over Novem ber in the number of failures was 66% and in total liabilities 53%. No large failure occurred, however, and the average for December was $21,680 compared with an average of $23,537 in November. Following are R. G. Dun & Com pany’s comparative figures for the states in this district (table “ Q ” ) : Building activity in the district during Decem ber, 1920, was 5.8% greater than that of N o vember. Each of the principal centers, except Los Angeles, where a decline of Building 39.3% in the value of permits ocActivity curred, reported an increase in value but a decrease in the number o f permits issued. The value of December build ing operations in the district generally, and in the principal cities, with the exception o f Seattle, is substantially in excess of corresponding values for December, 1919, the increase for the district as a whole being 30.8 per cent. Follow ing are comparative figures for the district as a whole and for those cities the value of whose permits exceeded $500,000 (table “ R ” ) : December bank clearings for the district were approximately the same as those for November but 2.8 per cent larger than the clearings of De (P) Shipbuilding-December 1 Vessels For U. S. S. B ......................... For Private A cco u n t............... For Private Account— Foreign... -Octolber 1 - -November 1 Vessels Total D. W . Tonnage Total D. W . Tonnage Vessels Total D. Tf. Tonnage 23 34 9 218,100 382,660 82,280 26 38 9 248,700 415,060 82,280 34 37 9 316,750 440,040 82,280 66 683,040 73 746,040 80 839,070 (Q) Business Failures— December 4 61 12 2 16 6 41 Arizona ............................... California ............................. Idaho .................................. O re gon ................................. U t a h ..................................... Washington .......................... 196 District ............................. October November Liabilities No. No. Liabilities No. 23,200 609,339 148,566 22,000 2,686,435 150,670 690,133 0 47 18 0 11 7 35 0 $ 668,061 397,681 0 92,806 76,846 1,542,063 5 67 2 0 22 7 23 $4,249,343 118 $2,777,457 126 $ Liabilities $ 57,400 1,886,585 1,500,500 0 407,223 26,089 421,259 $4,299,056 (R) Building Permits— % Increase or December, 1 9 2 0 No. * Value November, 1 9 2 0 No. * Value Decrease (— ) in Value During Month Decrease ( — ] in Value of 1 9 2 0 December, 1 9 1 9 Over No. * Value 1919 Los Angeles ..... , 1913 San Francisco .. . , 376 San Diego ........ 249 Portland ........... 594 324 Oakland ........... 200 F re sn o .............. 577 Seattle .............. 3804 1749 1220 633 630 2231 1676 2640 384 278 751 400 242 750 6228 1470 919 590 564 321 463 — 38.3 18.9 32.7 7.0 11.1 695.0 61.9 1763 461 150 453 272 180 603 3611 1368 543 694 782 570 599 56.7 82.1 91.6 22.6 33.0 64.9 — 11.8 Total ............ , . 4,233 11,946 5,445 10,595 13.3 4,453 9,321 64.9 Total District .. .. 5,364 13,877 6,946 13,109 5.8 5,320 10,818 30.8 *000 omitted. 12 A g r ic u ltu r a l cember, 1919. That the normal seasonal ex pansion of business activity in December is not reflected in a larger amount of clearings for that month is probably Bank Clearings due to the lower prices pre vailing in December, facili and Debits to tating a larger number of Individual Accounts business transactions for a given expenditure of money. This increase in the number of business trans actions is also indicated in a comparison of the November and December totals of debits to individual accounts as reported by 113 banks in twenty principal cities of the district, which were $2,745,000,000 in December, 1920, and $2,241,000,000 during November, an increase during December of 22.4 per cent. December, 1920, figures are 1.8 per cent less than the December, 1919, total of $2,789,000,000. Follow ing are comparative figures for the branch cities and comparative totals for twenty reporting cities in the district (table “ S” ). Following is a statement of interest and dis count rates customarily charged by banks in Fed eral Reserve Bank and Branch cities, tabulated 1 for the thirty day periods ending andD iscount JanuaiT 15, 1921, and DecemRates !^ r„ 15’ 1920, respectively (table The shrinkage in the volume of business transactions which normally occurs after the first o f the year, due primarily to the contraction in and B u sin ess C o n d itio n s retail trade with the end of the holidays, the con clusion of periodical payments of interest, rents and taxes, the curtailment of activity attendant upon inventory taking, and, ordinarily, Federal the completion of the major portion of Reserve the marketing of the crops, is reflected Bank in the statement of condition of this bank at close of business January 14, 1921. It shows substantial liquidation of member banks’ borrowings during the five preceding weeks, holding of bills discounted for them having decreased from $176,872,000 on December 10, 1920, to $159,065,000 on January 14, 1921, a de crease of $17,807,000, or 10.1 per cent. The de cline in the volume of transactions settled in cash, which accompanies liquidation of this char acter, resulted in a decrease of $6,743,000 or 2.5 per cent in the volume of Federal re serve notes in circulation. This circulation now stands at $260,068,000. Federal reserve bank note circulation declined from $10,290,000 to $8,402,000. Total cash reserves increased by $19,279,000 (of which $18,327,000 was gold) to $194,777,000 and are now 52.4 per cent of note deposit and net liabilities as against 47.3 per cent on December 10, 1920. The bank’s secondary reserve, consist ing of bills (bankers acceptances) bought in the open market, was allowed to decline during the period under review from $5^,185,000 to $33,509,000, a decrease of $19,676,000 or 37 per cent. (S) Bank Clearings— November, 1 9 2 0 December, 1 9 1 9 San Francisco .............................. Los Angeles ............................... Portland ..................................... Seattle ........................................ Salt Lake ................................... Spokane...................................... $ 664,100,000 380,189,000 150,605,000 145,711,000 88,117,000 50,757,000 $ 671,900,000 351.735.000 152.476.000 150.374.000 81.295.000 53.556.000 $ 773,871,000 265.550.000 151.642.000 183.458.000 95.592.000 58.001.000 Total ...................................... $1,479,479,000 $1,461,336,000 $1,528,114,000 Total District* .......................... $1,733,678,000 $1,716,906,000 $1,781,084,000 December, 1 9 2 0 *21 cities reporting. (T ) Interest and Discount Rates— Prime Commercial Paper Customers San Francisco..... . Los Angeles....... Seattle ............... Portland ............ Salt Lake........... Spokane ............ Collateral Demand Loans Interbank Loans Open Market Secured by L . L. Bonds or U. S. Certificates of Indebtedness Jan. Dec. Jan. Dec. Jan. Dec. Jan. Dec. Jan. Dec. e y 2 6 y2 8 7 6 y2 6 ^ 6 7 7 6^2 7 6 y2 6 y2 6 y2 7 7 7 8 7 8 7 8 8 7 8 7 8 8 8 8 7 7 7 7 7 8 8 8 8 8 7 8 7 8 8 8 8 none none 7 6 7 7 8 8 7 7 8 none 7 F ederal R eserve Bank of San 13 F r a n c isc o COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN FRANCISCO AT CLOSE OF BUSINESS JANUARY 14, 1921 RESOURCES— Jan. 1 4 , 1 9 2 1 Dec. 1 0 , 1 9 2 0 Jan. 1 6 ,1 9 2 0 $ 18,129,000 32,267,000 152,000 $ 13,946,000 42,624,000 3,116,000 $ 12,859,000 27,439,000 5,535,000 $ 50,548,000 $ 59,686,000 $ 45,833,000 Gold Redemption Fund................................... 131,137,000 11,704,000 102,632,000 12,744,000 103,382,000 9,466,000 Total Gold Reserves............................. $193,389,000 $175,062,000 $158,681,000 Legal Tender Notes, Silver, etc....................... 1,388,000 436,000 454,000 Total Reserves........................................ Bills Discounted: Secured By Government W ar Obligations. $194,777,000 $175,498,000 $159,135,000 47.782.000 111,283,000 33.509.000 59.456.000 117,416,000 53.185.000 55.357.000 36.599.000 109,693,000 $192,574,000 $230,057,000 $201,649,000 S. Government Bonds............................................ S. Victory N otes................................................... S. Certificates of Indebtedness............................. Other Earning Assets............................................ 1,872,000 0 12,202,000 0 2,632,000 0 11,301,000 0 2,632,000 0 12,018,000 0 Total Earning Assets........................................ $206,648,000 $243,990,000 $216,299,000 Bank Premises.............................................................. Uncollected Items and Other Deductions from Gross Deposits......................................................... 5% Redemption Fund Against F. R. Bank Notes. . . All Other Resources..................................................... 389,000 231,000 231,000 44,903,000 665.000 493.000 43,495,000 665.000 566.000 53,034,000 665.000 335.000 T otal R esources............................................ $447,875,000 $464,445,000 $429,699,000 $ $ $ Gold and Gold Certificates................. Gold Settlement Fund— F. R. Board. Gold With Foreign Agencies............. Bills Bought in Open Market. U. U. U. All L IA B IL IT IE S — Capital Paid In .............................................................. Surplus ......................................................................... Government Deposits................................................... Due to Members— Reserve Account.......................... Deferred Availability Items....................................... Other Deposits, including Foreign Government Credits................................................. F. R. Bank Notes in Circulation- -Net Liability. . . All Other Liabilities...................... T otal L iabilities ........... . M emo : Contingent Liability on Bills Purchased for Foreign Correspondents................. .. 6,949,000 14,194,000 1,340,000 113,991,000 33,980,000 7,315,000 6,904,000 11,662,000 2,759,000 120,316,000 35,405,000 3,476,000 5,796,000 7,539,000 5,969,000 123,961,000 33,532,000 5,461,000 $156,626,000 $161,956,000 $168,923,000 260,068,000 8.402.000 1.636.000 266,811,000 10,290,000 6,822,000 234,142,000 11,866,000 1,433,000 $447,875,000 $464,445,000 $429,699,000 736,000 736,000 0
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