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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. IX San Francisco, California, July 20, 1925 No. 7 SU M M A R Y OF N A T IO N A L CONDITIONS Production of basic commodities, and factory employment declined further in June, while railway freight shipments and the volume of wholesale trade increased. Wholesale prices, after declining for two months, advanced. Production. Production in basic industries, as indicated by the Federal Reserve Board’s index, declined about 1 per cent in June to the lowest level since the autumn of 1924 but was 17 per cent above the low point of last summer. Output of pig iron, steel ingots, lumber, news print, and petroleum, and mill consumption of cotton declined in June, while production of bituminous coal, sole leather, and wheat flour increased. The number of automobiles manu factured was slightly less during June than in May. Factory employment declined 1 per cent and factory payrolls over 2 per cent between May 15th and June 15th, reflecting substantial declines in the automobile, boot and shoe, tex tile, and iron and steel industries. Building contracts awarded during June were larger in value than during May and almost equaled the peak figure for April. In square feet of floor space, the June awards were a little smaller than those for May. Residential contracts in June were the smallest for any month since PER CENT PER P rodu ction in B a sic Industries — Index of 22 basic commodities corrected for seasonal variation ( 1 9 1 9 = 1 0 0 ) . February, 1925, but greatly exceeded those of a year ago. The Department of Agriculture estimate of the condition of all crops combined on July 1st showed some improvement from the month before. The corn crop forecast places that crop at approximately 550,000,000 bushels above last year. The July 15th cotton crop estimate was 13,588,000 bales, compared with a forecast of 14,339,000 bales on June 25th. Trade. Freight car loadings were larger during June than during May, as is usual at that season, and also considerably exceeded the figures for June, 1924, the low point of last year. Sales at department stores during June were seasonally smaller than in May, but totaled 5 per cent more than last year. It should be borne in mind, however, that in June of this year there were four Sundays as com pared with five in the preceding month as well as in June, 1924. Mail order sales were 6 per cent larger than in May and exceeded the amount reported for June, 1924. Sales of whole sale firms were 5 per cent greater than in May and larger than in any June in the last five years. Department store stocks were reduced further in June, but were slightly larger than a year ago. Wholesale stocks of groceries, shoes, Latest figure, June, 110. CENT W h olesale P rices — Index of U . S. Bureau of Labor Statistics (1 91 3 = 100, base adopted by Bureau). Latest figure, June, 154. 50 M O N TH LY REVIEW OF BUSINESS CONDITIONS and hardware were smaller at the end of June than a month earlier, but those of dry goods and drugs were larger. Compared with a year ago, stocks of groceries and drugs were larger in value, while stocks of dry goods, shoes, and hardware were smaller in value. Prices. Wholesale commodity prices ad vanced 1.4 per cent in June, according to the PER J u ly , 1925 bank credit for commercial purposes was rela tively inactive, and the volume of commercial loans at reporting member banks remained near the low level for this year, although con siderably above the amount for the correspond ing period in 1924. At the reserve banks the seasonal demand for credit and currency was reflected in increased borrowing by member CENT BILLIONS OF DOLLARS 2 BILLIONS OP D O L L A R S 2 i Earning Assets 1 Discounts! L Acceptanc U SSec^ — ^ 1922 J ^ 1923 aV 4 es 1924- 1925 R eserve B ank C re d it — W e e k ly figures for 12 Federal Reserve Banks, F a ctory E m ploym ent and P ayrolls — Indexes for 45 manufacturing indus Latest figures, July 22 tries ( 1 9 1 9 = 1 0 0 ) . Latest figures, June, employment, 9 4 ; payrolls 105. index of the Bureau of Labor Statistics, fol lowing declines in April and May. The largest increase for any commodity group was for the miscellaneous group, which includes crude rubber. Prices of farm products, foods, and fuel and lighting also advanced, while prices of building materials declined considerably. In the first half of July, quotations on flour, beef, hogs, wool, copper, petroleum, hides, and rub ber increased, while prices of sugar, bituminous coal, and hardwood lumber declined. Bank Credit. At member banks in leading cities the volume of loans on securities con tinued to increase after the middle of June, and during the first half of July was at a higher level than at any previous time. Demand for banks which carried discounts at the beginning of July to the highest level in more than a year, and notwithstanding the subsequent decline the total on July 22nd was still at a relatively high level. Total earning assets on that date showed little change as compared with the figures for four weeks earlier. Firmness in the money market at the close of the fiscal year was followed by an easing of money after the first week of July. In the latter part of July there was again evidence of firmer money conditions. These changes were reflected chiefly in the movement of rates for call money, quoted rates on prime commercial paper and on bankers’ ac ceptances remaining at 3 ^ -4 per cent and 3 % per cent, respectively, throughout the period. T W E L F T H FED ER AL RESERVE DISTRICT CONDITIONS June, 1925 H com pared w ith June, M ay, 1924 1925 15.7 6 .6 Statistical Summary— June, 1925 M ay, 1925 June, 1924 M ay, 1924 Bank Debits— 21 cities*.............................. $2,751,302 $2,582,108 $2,377,461 $2,460,179 Bank Debits— Index Number,sf— 20 cities....... 140 136 121 130 Building Permits— 20 cities........................ $39,072,852 $38,841,828 $28,197,633 $31,909,015 147 145 135 143 Retail Sales— 32 stores— Index Numbersf....... Savings Deposits— 71 banks*....................... $1,125,843 $1,096,785 $1,004,472 $983,092 Lumber Production— 4 associations— board feet* 728,185 698,816 616,664 721,496 Petroleum Production^— California— barrels.... 642,938 607,107 626,933 639,793 Flour Production— 16 companies— barrels....... 276,315 231,456 470,108 421,961 Reporting Member Bank Loans and Discounts§* $1,114,272 $1,099,927 $1,013,853 $1,018,830 Reporting Member Bank Deposits§*............ $1,559,639 $1,540,496 $1,364,638 $1,350,483 Federal Reserve Bank Discounts||*............... $37,939 $39,288 $22,408 $32,739 Federal Reserve Bank Reserve Ratio||........... 75.9 74.4 83.2 81.4 * I n th ou sa n d s. t A d ju s t e d f o r se a s o n a l v a r ia tio n s — 1919 m o n th ly a v e r a g e = 1 0 0 . $ D a ily a v e r a g e p r o d u c t io n . §J u ly 8, Ju n e 10, 1925, a n d J u ly 9 and J u n e 11, 1924. ||July 15, Ju n e 17, 1925, an d J u ly 16 an d J u n e 18, 1924. 1 iP ercen tage in cre a s e o r d e c r e a s e ( — ). 15.7 38.6 8.9 2.9 12 .1 2 .6 18.1 4.2 5.9 19.4 1.3 2 .6 — 41.2 9.9 14.3 69.3 — 8 .8 0 .6 1.4 1 .2 - 3.4 2 .0 July, 1925 Agricultural Activities Early harvest reports have tended to confirm previous forecasts of satisfactory yields of the principal crops of the Twelfth Federal Reserve District. Weather conditions continued gener ally favorable during June and early July, although grain crops in the Pacific Northwest and fruit crops in the interior valleys of Cali fornia were damaged slightly by hot, dry winds during the last week of June. The grain harvest is now in progress in most sections of the district. July 1st forecasts of the Department of Agriculture indicated a total district production of all w h ea t amounting to 100.374.000 bushels. This is 43.2 per cent more wheat than was produced in the district last year, but is 11.7 per cent below the five-year average production of 1919-1923, a period which excludes the unusually small crop of 1924 but includes the record yield of 1923 (141,367,000 bushels). The district’s 1925 barley crop is estimated at 46,607,000 bushels, compared with 19.270.000 bushels produced in 1924 and the 1919-1923 average yield of 39,395,000 bushels. In California the forecasted yield of 29,882,000 bushels compares with 10,080,000 bushels pro duced in that state in 1924, and the 1919-1923 average of 30,503,000 bushels. The California rice crop has made excellent progress during the past six weeks. Its condi tion was estimated at 92 per cent of normal on July 1st, wThich compares with a ten-year aver age condition of 89 per cent on that date. Ap proximately 108,000 acres have been planted to rice in California this year, compared with 88.000 acres in 1924. Estimated production is 14.3 per cent less than the five-year average (1919-1923) yield. Total district and United States production figures for all wheat, barley, and rice follow (000 omitted) : /— A ll W h e a t— n ,------B a r le y -------^ ,---------R i c e ----------* F o re ca st F o re ca st F orecast July 1, A ctu a l J u ly l, A ctu al July 1, A ctu al 1925 1924 1925 1924 1925 1924 (bushels) (bu sh els) (bushels) T w e lft h U n ite d 51 FEDERAL RESERVE AGENT AT SAN FRANCISCO (bushels) (bushels) (bushels) D is t r ic t 100,374 70,077 46,607 19,270 6,309* 4,497* S t a t e s .. 680,000 873,000 208,475 187,875 38,066 33,956 ^ C a liforn ia o n ly . Spring and summer planting of field crops has been completed and prospective yields are uniformly larger than were the yields of 1 9 2 4 . Comparative figures for beans, cotton, potatoes, and sugar beets in this district and in the United States follow (000 omitted) : 1924 235 1,376 U nit bu . bu. ,— P rodu ction — \ F o re ca st A ctu al July 1,1925 1924 4,597 3,630 16,768 13,327 310 41,360 b a le s b a le s . .. 13,588§ 227 3,662 bu. bu. 35,101 349,566 31,508 454,184 230 925 to n to n 1,883 6,195 1,620 7,513 r~ A cre a g e B eans: 1925 ^ T w e lfth D is t r ic t . . 302 U n ite d S ta te s .......... 1,584 C o tto n : t T w e lft h D is t r ic t . . 333 U n ite d S t a t e s ..........46,448 P ota toes: T w e lft h D is t r ic t . . . 230 U n ite d S t a t e s .......... 3,453 Sugar B e e ts : J T w e lfth D is t r ic t . . 209 U n ite d S t a t e s .......... 776 * A r iz o n a , C a lifo rn ia , and I d a h o . ^ C a lifo rn ia , I d a h o , and U ta h . § Ju ly 15th e stim ate. 186 13,619 f A r iz o n a and C a lifo rn ia . Production of important deciduous fruit and nut crops of the Twelfth District will also be larger this year than in 1 9 2 4 , according to pres ent estimates. Shipments of fresh deciduous fruits, excepting cherries, from California and from the Pacific Northwest have been slightly larger in volume thus far in the present season than in the corresponding period of the 1 9 2 4 season. Condition and yield figures of import ant horticultural crops (except apples) in Cali fornia, and of apple production in the Twelfth District and in the United States follow: t------------ C o n d it io n --------------^ t---------July 1 st----------\ 10-Year J u n e l, 1924 A v era ge 1925 62 70 56 65 70 63 65 61 49 74 90 88 79 .. 92 74 . . 90 70 . . 86 55 74 86 72 84 80 68 78 73 73 62 81 66 76 68 76 84 92 81 80 88 1925 A lm o n d s .......... 56 A p r ic o t s .......... 64 C h erries ........... 50 G ra p es .............. 87 W in e ................... T a b l e .................... R a is in ................. O liv e s ............... 79 P e a ch e s ........... 80 P e a rs ................. 74 P lu m s ............... 78 P r u n e s .............. 60 W a ln u ts .......... 96 O ra n g e s .......... 88 L e m o n s ............ 81 78 82 82 A p p le s T w e lft h D is t r ic t ............................................................... U n ite d States 57.7 65.4 61.8 66.4 *B ox es. ,------------Y i e l d -------------\ F orecast A ctu al July 1,1925 1924 (tons) (tons) ... 9,200 147,000 137,000 11,000 13,000 2,180,000 1,550,000 398,000 350,000 456,000 300,000 1,326,000 900,000 ... 5,500 392,000 320,000 148,000 133,000 64,000 39,000 ... 115,000 32,000 21,500 ... 24,100,000* ... 6,732,000 * 4 0 ,2 5 7 ,0 0 0 t 3 2 ,1 8 4 ,0 0 0 f 8 7 ,6 9 0 ,0 0 0 t 8 5 ,7 6 1 ,0 0 0 t t C o m m e r c ia l c r o p in b o x e s . (A ) Agricultural Marketing Activity— t------ E x p o r t s --------\--- t----------------C a rlot S h ip m e n ts ----------- L iv e s to c k R eceip ts W heat* Barley* A p p le s* T otal at Eight M arkets in 12th D istrict Portland and San 12th D e cid u o u s O ra n gesf L e m o n s f C a ttle Puget Sound F ra n cis co D ist. Fruits£ C a lif. C a lif. and M on th ly (1000 bu.) (1000 bu.) (cars) (cars) (cars) (cars) C a lves H ogs Sheep Ju n e, 1 9 2 5 ....................................... 302 605 147 2,420 3,367 1,801 94,021 178,636 248,031 M a y , 1 9 2 5 ....................................... 0 840 604 370 4,427 1,820 86,334 140,557 362,181 J u n e— 5 -year a v e r a g e ............... 1,808 498 92$ 2,600 4,482 1,809 86,913 150,705 254,054 t------------------------------- C r o p Y e a r ------------------------------- > 16,784 8,442 38,133 2,807 30,216 7,984 (2 3 .6 ) (4 1 .3 ) (8 2 .9 ) (7 3 .0 ) (6 9 .4 ) T o J u n e 30, 1 9 2 4 ........................ 31,989 10,575 58,415 2,816 35,857 9,354 (2 2 .2 ) (2 2 .9 ) (8 8 .9 ) (6 8 .7 ) (6 7 .2 ) F iv e -y e a r a v e r a g e to J u n e 30. 25,520 11,195 46,215$ 2,665 32,529 7,446 ________ (2 2 .2 ) (2 6 .8 ) (8 6 .5 ) (7 3 .7 ) (6 8 .2 ) C u m u lative T o J u n e 30, 1 9 2 5 ........................ F ig u r e s in p a re n th e se s in d ica te p e r c e n t a g e o f n e w c r o p o n ly . $ T h r e e -y e a r a v e ra g e . § C a lifo rn ia — e x c lu d in g a p p le s. S e a s o n ||At en d o f m o n th . flF o u r -y e a r a v e ra g e . f------------ C alend ar Y e a r --------------N 607,999 1,253,430 1,381,287 592,119 1,398,866 1,407,935 528,258 1,048,857 1,423,311 * S e a s o n b e g in s J u ly 1st. fS e a s o n b e g in s N o v e m b e r 1st. b e g in s M a y 1st. J u n e fig u re s to J u n e 28th. Cold Storage Holdings 11 12th D istrict Butter Eggs (1000 (1000 lbs.) cases) 3,345 521 1,612 429 4,301 55911 52 M ON TH LY REVIEW OF BUSINESS CONDITIONS Weather conditions during the past six weeks have been generally favorable to the live stock industry, present supplies of feed are ade quate, and herds and flocks are in satisfactory condition. Wool shearing has been completed in this district, and preliminary commercial estimates indicate a total clip of 90,000,000 pounds, compared with 86,956,000 pounds pro duced in 1924. Growers have already sold a large proportion of the 1925 clip at prices rang ing from 30 to 53 cents per pound, compared with 33 to 47 cents per pound received for the clip of 1924. Estimates of the proportion of the clip sold by July 1, 1925, range from 30 to 85 per cent in different sheep raising sections, compared with estimates ranging from 50 to 85 per cent of the 1924 clip sold by July 1, 1924. Agricultural marketing trends, as indicated by comparative figures of the movement of certain of the district’s important crops, figures of market receipts of livestock, and of cold storage holdings of butter and eggs, are shown in Table “A ,” page 51. J u ly , 1925 and Stockton, California, and in Portland, Ore gon. During the first six months of 1925, the value of building permits issued in the 20 selected cities was larger than during any half year of record, exceeding the previous peak figures of the last six months of 1923 by 6.4 per cent. B U I L D I N G P E R M I T S I N 20 C I T I E S Per Cent Increase or Decrease (— ) M o n th s in 1925 com pared with sam e M o n th s in ,----------------------- 1924----------------------- ^ M on th ly Y e a r-to -d a te N o. V a lu e N o. V a lu e J u n e -----8.4 38.6 — 3.8 11.2 M a y -----0.9 21.7 — 5.8 6.7 A p ril . . . ~~ 2.3 20.4 — 7.3 3.3 M a r c h . . — 2.5 2.2 — 9.0 — 2.3 F e b ru a r y . — 18.0 — 4.5 — 12.7 — 4.9 J an u ary . — 7.1 — 5.3 — 7.1 — 5.3 M o n th in 1925 com pared with p recedin g M o n th N o. V a lu e — 2.2 0.6 — 6.6 — 8.6 3.4 — 8.6 32.0 23.2 — 7.2 3.8 21.2 — 0.05 MILLIONS OF D O L L A R S Industrial Activity Seasonal activity in industry has been re ported during recent weeks, and figures of em ployment and production indicate that indus trial output was slightly larger in volume during June, 1925, than during June, 1924. In crease in number of workers employed in the district’s principal industries during June was in excess of the normal seasonal increase. Figures of employment in California and Ore gon are shown in Table “ C.” Volume of building construction has con tinued near record levels. June figures o£ value of building permits in 20 principal cities showed a smaller than seasonal increase as compared with figures for May, but were 38.6 per cent larger than the figures for June a year ago. The latter increase was the result, chiefly, of large increases in value of building authorized in Berkeley, Fresno, Los Angeles, Sacramento, (B ) Building Permits— N o. B e r k e le y ................ B o is e ....................... F r e s n o ..................... L o n g B e a ch ......... L o s A n g e le s ......... O a k la n d ................. . . O g d e n ..................... P a sa d en a .............. P h o e n ix ................. P o r t la n d ................. , . R e n o ........................ S a c r a m e n to .......... S alt L a k e C ity . . . S a n D ie g o ............. S an F r a n c is c o . . . S a n J o s e ................. S ea ttle ..................... S p o k a n e ................. S t o c k t o n ................ T a c o m a .................. D is t r ic t 382 50 92 337 1,187 29 271 78 1,148 36 274 150 626 902 86 909 216 94 .............. . . 10,813 June, 1925 V a lu e N o. June, 1924 V a lu e $ 1,265,175 43,982 518,730 1,077,900 15,305,516 2,766,419 182,550 919,357 169,026 4,772,020 91,445 1,131,976 565,697 1,294,130 4,661,024 330,830 2,168,230 424,255 710,900 673,690 243 56 68 416 3,387 936 30 247 61 1,159 18 235 167 480 856 78 898 217 94 332 $ 568,516 40,712 64,013 1,515,232 10,292,542 2,527,008 82,200 628,146 100,000 2,344,290 63,750 509,410 561,245 1,524,490 3,899,374 198,135 2,094,350 236,970 276,555 670,695 $39,072,852 9,978 $28,197,633 V a lu e o f B u ilding Perm its — T e n C ities _______ (Bi-M onthly Averages) * N o v e m b e r -D e c e m b e r , 1920, a v e r a g e $9,700,000. t J a n u a r y -F e b r u a r y , 1921, a v e r a g e $8,500,000. F o r fu rth e r e x p la n a tio n an d list o f c itie s in c lu d e d in fig u re s p r e se n te d in th is ch a rt see n o t e to ch a r t o n p a g e 21 o f M a r c h , 1925, R e v ie w . The United States Bureau of Labor Statis tics’ index number of building materials prices stood at 171 (1913 prices— 100) for June, 1925, compared with 174 for May, 1925, and 173 for June, 1924. Production of lumber was larger by 4.2 per cent during June, 1925, than during May, 1925, a partly seasonal increase. As in May, report ing lumber mills of the district cut more lum ber than they sold, but for the first six months of 1925 their reports show that production was slightly less than sales and shipments. Recent increases in demand for lumber are reflected in June figures of orders received and shipments made which were 3.8 per cent and 2.7 per cent larger, respectively, than in May. L U M B E R A C T IV IT Y * June, M ay, June, r- F i r s t Six M o n th s—'» 1925 1925 1924 1925 1924 (boardfeet) (board feet) (boardfeet) (board feet) P r o d u c t io n . . . . S h ip m e n ts ____ O rd e rs ............... U n fille d O rd e rs N o . o f M ills R e p o r t in g . . 728,185 709,928 704,322 433,153 698,816 691,408 678,792 475,854 616,664 563,344 542,677 337,113 176 177 187 3 ,8 28,344 3,899,662 3,863,746 180t (board feet) 3,806,180 3,780,881 3,561,072 197f * A s r e p o r te d b y fo u r a s s o c ia tio n s , 000 o m itte d e x c e p t in ca s e o f n u m b e r o f m ills r e p o r tin g . t A v e r a g e o f first s ix m o n th s . July, 1925 National production of non-ferrous metals, except copper, a considerable proportion of which is mined in this district, was smaller during June, 1925, than in May, 1925, but larger than in June, 1924. N O N -F E R R O U S M E T A L S —N ational Produ ction June, 1925 M ay, 1925 June, 1924 C o p p e r ( lb s .) (m in e p r o d u c t io n ) .................................. 140,644,000 139,514,000 126,948,000 S ilv e r ( o z .) (c o m m e r c ia l 5,328,000 5,423,000 5,228,000 b a r s ) ...................................... Z in c ( t o n s ) ( s l a b ) .............. 45,920 49,738 43,442 F ig u r e s fo r lead are n o t av ailable Reported daily average production of petro leum in California during June, 1925, was 642,938 barrels, a figure 2.6 per cent larger than that reported for June, 1924, and 5.9 per cent larger than the figure for May, 1925. Indicated average daily consumption increased 11.1 per cent during June as compared with May, but continued less than production, and stored stocks advanced to new high levels (110,966,791 barrels on June 30, 1925). P E T R O L E U M — C a liforn ia Indicated A v era ge A v era ge D aily C on su m ption D aily P rodu ction (Shipm ents) 1925. 1925. 1923* 1924. . . . . N um ber O pened (barrels) (barrels) 567,714 510,774 $ $ 642,938 607,107 858,750 626,933 r - N e w W ells D aily P ro d u c tion Stored S to ck s at End o f M on th (barrels) (barrels) Ju n e, M ay, S e p t., Ju n e, 53 FEDERAL RESERVE AGENT AT SAN FRANCISCO 119 78 93 88 110,966,791 108,710,090 $ 9 5 ,0 3 0 ,7 7 7 t * P e a k o f p r o d u c t io n . fO c to b e r, fig u res n o t av a ila b le . 1924, s to c k s . 73,150 52,440 139,960 37,209 $ C o m p a r a b le Greater than seasonal increases in flour mill ing activity reported during June were the consequence of unusual inactivity during May rather than of a broad improvement in the de mand for flour. Output of reporting mills during each of the past four months (MarchJune) has been smaller than in the same months of any year since 1921, when this bank began keeping the record. Stocks of wheat and flour held by the mills have been allowed to de cline during recent months. A t the end of June, their stocks of wheat w’ ere 48.1 per cent and of flour 19.7 per cent below the five-year average (1920-1924) holdings on June 30th. F L O U R M IL L IN G * O u tp u t ( b b l s . ) . . . S tock sf F lo u r ( b b l s . ) . . . W heat (b u .)... June, 1925 M ay , 1925 276,313 231,456 470,108 356,838$ 361,597 743,885 411,850 920,309 361,780 1,632,835 450,118 1,433,569 * A s r e p o r te d b y 16 c o m p a n ie s . in g m o n th . $1921-1925. June, 1924 F iv e -Y e a r A v era ge June, (1920-1924) t A s o f the first d a y o f the f o ll o w During June and the first three weeks of July, fruit canning and packing plants of the district, particularly in California, became generally active. Commercial estimates indicate that 1925 production of both canned and dried fruits will be larger in California, and slightly smaller in Oregon and W ashington, than the 1924 out put, changes in the size of the pack reflecting similar changes in size of canning and drying fruit crops in each state. Markets for both canned and dried fruits have been relatively active during recent months, and fruit packing factors are entering upon the 1925 season with smaller carryover stocks than have been held in the years since 1920. General Business and Trade General business activity in the district during June was maintained at approximately the same level as in March, April, and May, a level well below the peak of February but still slightly above estimated normal. For the first six months of 1925 the business record gener ally shows an increase in activity as compared IN D E X NUMBERS ( C) E m ploym ent— C aliforniia ----/— ------ O regon N o . of N o. of N o. <— E m ployees N o . ^— E m ployees —> June, M ay , June, M ay, of of F irm s 1925 1925 1925 F irm s 1925 Industries 148,185 (1 .7 ) 145,643 120 20,805 (2 .7 ) 20,255 57 7,838 ( — 1.7) 7,976 5 276 (2 .2 ) 270 119 28,328 (1 .3 ) 2,367 ( — 2 .5 ) 27,975 51 5 16,821 ( — 1.2) 817 ( — 12.9) 17,033 2,427 7,017 ( — 5.4) 7,416 9 569 (1 .8 ) 559 26,449 (5 .2 ) 25,137 41 1,879 (7 5 .3 ) 1,072 5 10,316 (2 .5 ) 63,527 (2 .1 ) 14 2,343 ( — 2 .7 ) 10,061 O th e r In d u s trie s* . 315 62,242 A ll I n d u s t r ie s ........... 737 S to n e , C la y and G lass P r o d u c t s . L u m b e r an d W o o d M a n u fa ctu re s .. 14 C lo th in g , M illin e ry an d L a u n d e rin g . F o o d , B e v e ra g e s an d T o b a c c o . . . W a te r , L ig h t and P o w e r . . . . M is c e lla n e o u s .... 64 149 2,409 9 443 (1 5 .7 ) 938 B ank D e b its — T w elfth D istrict 383 * I n c lu d e s th e fo llo w in g in d u stries : m etals : m a ch in e ry and co n v e y a n ce s ; lea th er and r u b b e r g o o d s ; ch e m ica ls, o ils and paints ; printing and paper goods. Index for 20 principal cities, figures for Phoenix, Arizona, not included, (1 91 9 monthly a v e ra g e = 1 0 0 ). Latest figures, June, with adjustment, 1 40 ; without adjustment, 141. with the first six months of 1924, and the amount of the increase was greater than that which might be attributed to normal annual growth of business in the district. This bank’s index of bank debits, which re flects changes in business activity, advanced 54 July, 1925 M ON TH LY REVIEW OF BUSINESS CONDITIONS from 136 (1919 monthly average=100) in May, 1925, to 140 in June, 1925, due allowance being made for normal seasonal variation in the figures as reported by banks in 20 principal financial centers. In June, 1924, the index stood at 121, the apparent increase of 15.7 per cent over the year period being approximately twice the estimated normal annual rate of growth for the district. The retail trade index, based upon sales of 32 department stores in seven principal cities of the district, declined 9.2 per cent during June, 1925, as compared with May, 1925. The decrease was less than that which normally occurs at this season of the year and the index, when adjusted for normal seasonal movements, advanced from 145 (1919 monthly a verage= 100) in May, 1925, to 147 in June, 1925. In June, 1924, it stood at 135. During January and February, 1925, sales of reporting stores were smaller in value than in January and February, INDEX NUMBERS 1924, but since the first two months of the year their sales have been larger in value than in the corresponding months a year ago. Total value of sales for the first six months of 1925 exceeded total value of sales for the first six months of 1924 by 2.2 per cent. D E P A R T M E N T S T O R E S A L E S - I n d e x N u m bers (1919 M onthly A v e r a g e = 1 0 0 ) W ithout Seasonal A d justm ent O ak land L os A n geles 100 130 118 113 130 125 110 129 133 143 143 Jun e, 1919. . 93 Ju n e, 1920. . 129 Jun e, 1921. . 133 Ju n e, 1922. . 144 1923. . 176 Ju n e, 1924. . 176 Ju n e, F e b ., 1925. . 173 M a r c h , 1925. . 215 A p ril, 1925. . 218 M ay, 1925. . 203 Ju n e, 1925. . 194 San F ra n c is c o Salt Lake C ity Seattle 85 105 97 101 108 109 104 132 135 148 120 94 113 109 102 115 107 80 98 110 124 106 102 125 116 122 130 131 136 133 141 135 143 91 110 105 99 111 103 112 107 117 108 103 S po kane D is trict* 90 100 86 91 101 95 73 95 98 102 98 84 138 105 101 106 82 73 77 92 85 85 90 115 108 112 128 125 115 143 147 149 136 90 100 87 91 101 95 114 102 104 104 98 83 136 104 99 104 81 106 91 95 86 84 97 125 117 122 139 135 150 147 152 145 147 W ith Seasonal A d justm ent Ju n e, Jun e, Jun e, Jun e, Jun e, Jun e, F e b ., M a rch , A p ril, M ay, Jun e, 1 9 1 9 .. 1920. . 1921. . 1922. . 1923. . 1924. . 1925. . 1925. . 1925. . 1925. . 1925. . 100 139 143 155 190 190 213 223 232 221 209 ' 100 130 117 113 130 124 146 138 137 154 143 *32 s to re s. D epartm ent Store Sales — T w elfth D istrict Index of 32 Stores in 7 cities (1 91 9 monthly averag;e= 100). Latest figures, June, with adjustment, 1 4 7 ; without adjustment, 136. (D ) Bank Debits*— June, 1925 B e r k e l e y ............ ,$ B o is e .................. F r e s n o .............. L o n g B e a ch . . L o s A n g e le s . . . O a k la n d ............ O g d e n ................. P a sa d en a .......... P h o e n ix ............ P o r tla n d ........... R e n o .................... S a c r a m e n to . . . S alt L a k e C ity . San D ieg o . . . . San F r a n c is c o . . S an J o s e .......... S eattle ............... S p o k a n e ............ S t o c k t o n ........... T a c o m a ............ Y a k i m a ............... T otal ............ *000 o m itte d . 16,682 12,613 28,479 43,812 787,260 1 33,867 June, 1924 950,044 22,468 2 07 ,924 53,432 24,443 48,004 12,245 17,450 11,436 26,426 46,851 700,255 106,513 19,750 28,811 21,062 149,469 8,057 36,029 62,923 48,195 777,716 19,255 179,757 47,274 20,638 40,792 8,802 $2,751,302 $2,377,461 21,700 33,408 22,721 165,202 9,568 35,423 65,989 56,018 $ Six M onths 1925 1924 $ 108,808 66,507 169,656 285,543 4,719,470 815,739 137,223 217,541 140,598 147,499 262,438 69,325 107,446 65,402 179,915 337,339 4,642,565 744,794 136,721 210,090 126,517 951,757 48,522 272,064 375,022 292,046 4,842,328 123,324 1,070,839 281,861 137,938 247,196 57,669 $16,180,745 $15,251,355 931,179 48,868 225,365 404 ,234 318,917 5,517,040 138,873 1,158,147 297,775 $ Trade at wholesale during June, as reflected in reports received by this bank from 190 firms in eleven lines of business, was considerably more active than a year ago, and relatively more active than in previous months of the present year. Compared with sales during June, 1924, the June, 1925, sales of these firms showed an increase of 13.8 per cent, value of sales in all lines, except groceries, being greater than a year ago. This is by far the largest in crease reported in any month of this year as compared with the corresponding month of 1924, the figure for May being 5.2 per cent and for April and March, less than 2 per cent. During the first six months of 1925, total sales of reporting firms were 2.5 per cent larger in value than during the first six months of 1924. W H OLESALE TRADE Percentage increase or decrease (— ) ■■ in V a lu e o f Sales .... — ^ January 1June, 1925 June, 1925 M a y , 1925 June 30,1925 com pared com pared com pared com pared w ith with with w ith J a n .lJune, 1924 M a y , 1925 M a y , 1924 June30,1924 r —----- N o . of F irm s A g r ic u ltu r a l Im p le m e n ts . . 21 A u to m o b ile S u p p lie s . . . 18 A u to m o b ile . , 22 6 D r y G o o d s „ . . 16 E le c t r ic a l S u p p lie s . . . 8 F u rn itu r e . . . . 18 G ro c e r ie s . . . . 26 H a r d w a re . . •. 20 . 12 S ta tio n e r y . . . 23 60.7 38.6 23.6 2.2 4.0 5.3 — 3.6 53.4 8.6 1.6 — 45.1 11.2 6.9 87.8 13.8 5.4 5.8 6.6 — 4.6 4.6 6.7 5.8 — — — 37.5 1.9 3.9 4.0 1.6 6.0 — 0.8 7.7 — 0.2 — — 3.5 — 3.3 — 1.3 — 2.9 — 12.2 0.4 21.4 1.3 — 4.3 — 2.6 — 4.2 — 10.1 — 1.3 July, 1925 On June 30, 1925, savings deposits at 71 banks in seven principal cities of this district were 12.1 per cent and 2.6 per cent larger, re spectively, than on June 30, 1924, and May 31, 1925. S A V IN G S A C C O U N T S June N u m ber of 30. B anks 1925* L o s A n g e le s . . 13 $382,933 O a k la n d f .......... 7 97,457 P o r t la n d .......... 9 54,158 S a lt L a k e C ity 8 29,963 S an F r a n c is c o . 14 467,796 S ea ttle ............... 14 73,750 6 S p o k a n e ............ 19,786 T ota l ............ 55 FEDERAL RESERVE AGENT AT SAN FRANCISCO M ay 31, 1925* $373,309 95,201 52,484 29,822 454,625 71,969 19,375 Per C en t increase o r d ecrease ( — ) June 30.1925, com pared with June June M a y 30, 30, 31, 1925 1924* 1924 $33 0,24 3r 16.0 2.6 90,767r 7.4 2.4 51,012 6.2 3.2 6.0 0.5 28,277 418,444 11.8 2.9 66,756 10.5 2.5 18,973r 4.3 2.1 71 $1,125,843 $1,096,785 $ l,0 0 4 ,4 7 2 r 12.1 2.6 of native beef at Chicago was $11.80 per hun dredweight, the highest price level recorded since the week ending December 4, 1920. The follow ing table shows the trend of livestock prices at Chicago during the past twelve months : Cattle N a tiv e B e e f (1 0 0 lb s.) 1924 . J u ly ........................... S e p te m b e r ............. . N o v e m b e r ............. D e c e m b e r ............... w as f o r 9 .3 4 9 .4 3 9 .6 4 9 .7 4 1 0 .2 7 9.7 9 9.2 3 H ogs Sheep F at L am bs (1 0 0 lbs.) ( 1 0 0 l b s .) (1 0 0 lb s.) $ 7 .0 6 7 .8 2 9.2 9 9 .5 3 1 0 .1 0 8 .9 6 9 .5 5 $ 5 .3 4 5 .7 3 6 .5 6 6 .0 5 6.3 3 6 .8 0 7.8 2 $ 1 4 .6 5 1 3 .7 6 1 3 .5 0 1 3 .3 5 1 3 .4 0 1 3 .9 0 1 6 .2 1 1 0 .4 0 1 1 .0 9 1 3 .6 1 1 2 .8 4 1 2 .0 0 1 2 .5 0 9 .0 4 8 .4 8 8 .8 8 7 .5 0 7 .2 6 6 .7 4 1 8 .1 0 1 7 .4 9 1 6 .2 1 14 .0 2 1 3 .7 2 1 4 .8 9 1925 F e b ru a r y ................ . *000 om itte d , f ln c l u d e s o n e b a n k in B e r k e le y w h ich m e rly a b ra n ch o f an O a k la n d b a n k , r— R e v is e d . $ A p r il ........................ , 9 .1 3 9.3 5 1 0 .2 1 1 0 .2 5 1 0 .0 4 1 0 .6 5 Prices Increase June, 1925 over June, 1924. The trend of prices during the past month has been upward. The Bureau of Labor Statistics' index number of prices of 404 commodities at wholesale (1913 prices=100) increased from 155 for May, the low point thus far in 1925, to 157 for June. This increase was the first advance in the index since March, 1925, when, at 161, it stood at the highest point reached in the past three years. The Department of A gri culture’s index number of farm prices of 30 agricultural commodities (1909-1913 average= 100) increased from 146 in May to 147 in June, 1925. The index of farmers’ purchasing power, which is based upon the ratio between the farm price index and the Bureau of Labor Statistics’ wholesale price index of non-agricultural com modities, remained at 90 (1913 purchasing pow er=100) during June. This is the same figure as was reported for April and May, 1925, but is 1.6 per cent below the figure (91.5) re ported for March, 1925, when the index stood at the highest point reached since June, 1920. Prices of cattle, hogs, and lambs advanced during June and the first half of July. For the week ending July 15th the weekly average price On July 15, 1925, wheat for September de livery was quoted at $1.50% to $1.54^4 Per bushel at Chicago, an average advance of 12 cents per bushel over quotations on July 2nd, but a decline of approximately 13 cents per bushel from the quotations of June 5th, when the price of September contract wheat reached the highest levels since trading in this future was resumed in June, 1921. Spot prices of shipping barley at San Francisco have ad vanced during the past three months, the price range during June and the first three weeks of July being $1.75 to $1.85 per cental ($0.84 to $0.89 per bushel), compared with $1.55 to $1.60 per cental ($0.74 to $0.77 per bushel) during the first half of April, 1925. During the June and July period a year ago, quoted prices on spot barley ranged from $1.80 to $2.50 per cental ($0.86 to $1.34 per bushel), and the grain sub sequently sold at $2.75 to $2.90 per cental ($1.32 to $1.39 per bushel), prices which pre vailed from September 23rd to December 8, 1924. Opening prices of the more important Cali fornia canned fruits in 1925 and 1924 and spot 1 4 .0 % 7 7 .2 % 2 6 .2 % 1 .6 % (E) Commodity Prices— C om m o d ity W h o le s a le P r ic e s ( U . S. B u re a u o f L a b o r ) 1913— 1 0 0 .................................... P u r c h a s in g P o w e r o f F a rm P r o d u c t s (U . S. D e p a r tm e n t o f A g r ic u lt u r e ) * C a ttle (N a t iv e B e e f ) ,. W e e k ly a v e r a g e p r ic e at C h ic a g o .................................... H o g s ............................. .W e e k ly a v e ra g e p r ice at C h ic a g o .................................... L a m b s ........................... .W e e k ly a v e ra g e p r ice at C h ic a g o .................................... W h e a t ..............................C h ic a g o c o n tr a c t p r ice fo r S e p te m b e r w h e a t............ C o t t o n ............................. M id d lin g U p la n d s — W e e k ly ra n g e o f s p o t q u o t a tio n s at N e w O r le a n s .......................................................... S u g a r ............................. .B e e t G ra n u la te d f. o . b . S an F r a n c i s c o ........................ . C h o ic e in 25-lb. b o x e s , f. o. b. C a lifo r n ia ................... D r ie d A p r ic o t s .S iz e 4 0 /5 0 in 25 -lb . b o x e s , f. o. b. C a lifo r n ia ............ R a is in s .............................L o o s e M u s c a te l— 2 c r o w n — in 2 5-lb. b o x e s , f. o. b. S an F r a n c is c o ....................................................................... W o o l ............................. ..A v e r a g e o f 98 q u o ta tio n s at B o s t o n ............................. C o p p e r .......................... .E le c t r o ly t ic , m o n th ly a v e ra g e at N e w Y o r k .............. L e a d .............................. . M o n t h ly a v e r a g e at N e w Y o r k ...................................... S ilv e r ............................ . M o n th ly a v e ra g e at N e w Y o r k ...................................... Z in c ............................... .M o n t h ly a v e r a g e at St. L o u i s ........................................... L u m b e r ( S o f t w o o d ) .,.W e e k ly I n d e x , U . S . $ ............................................................ U nit 100 lbs. 100 lbs. 100 lbs. bu. lb . lb . lb. lb . lb. lb . lb . lb . oz. lb. July 3,1925 O n e M o n th A g o O ne Y ear A g o 157 90 $11.75 13.20 15.85 1 .3 8 ^ -1 .4 1 Yz 155 90 $10.40 12.05 13.00 1 .6 3 ^ -1 -6 7 ^ 144.6 82 $9.30 6.90 14.20 1 .1 5 3 4 -1 .1 7 ^ 2 2 .9 0 -2 4 .1 5 0 5.700 . 1 6 J 4 - .1 6 ^ t .08 J4-.0824 2 3 .6 0 -2 4 .6 0 0 5.700 N o t Q u o te d .0 8 J 4 -.0 8 M 2 8 .3 5 -2 9 .3 5 0 7.100 .1354 .1054 •07^§ 79.180 13.3990 8.3210 69.1060 6.9900 29.73 .0 7 ^ 73.480 13.3470 7.9850 67.5800 6.9510 30.52 .0734 73.280 12.3270 7.0200 66.6900 5.7920 29.31 * R a tio o f farm p r ice s (A u g u s t , 1909-July, 1 9 1 4 = 1 0 0 ) t o w h o le s a le p r ice s o f n o n -a g r ic u ltu r a l c o m m o d itie s ( 1 9 1 0 -1 9 1 4 = 1 0 0 ). f 1925 c r o p p r ice s . $ A s p u b lis h e d b y the “ L u m b e r M a n u fa c tu r e r and D e a le r .” §J u ly 14, 1925. 56 prices on July 20, 1925, and July 24, 1924, are given in the follow ing ta b le : C h o ic e G ra d e O pening P rices* N o . 2 /a C ans 1925 1924 A p r ic o t s ....................................... 2.40 2.45 C h erries, R. A ............................. 3.45 2.85 P lu m s , E g g ................................ 1.90 1.85 P e a ch e s, Y . C ............................ 2.20 2.40 P e a ch e s, Y . F ............................. 2.15 2.25 P ea rs, B a rtle tt ........................ 3.30 3.00 Spot Prices* July 20, July 24, 1925 1924 2.50 2.60 3.50 3.00 2.00 2.00 2.30 2.60 2.15 2.30 3.50 3.25 * F . O . B . C a n n e ry in C a lifo rn ia . Prices now being paid growers in California for the chief canning fruits are compared with prices paid during three previous seasons in the follow ing table : N u m ber 1 G ra d e C a nning F ru it A p r ic o t s ........................... C h erries ............................ P e a ch e s, Y . C ................. P e a ch e s , Y . F ................. P e a rs, B a rtle tt .............. July, 1925 M ON TH LY REVIEW OF BUSINESS CONDITIONS 1925 (per ton) $ 5 0 -$ 6 0 160* 35* 25 72f 1924 (per ton) $ 65 115 45* 25 60 1923 (per ton) $25—$35 1 90 -20 0 30 25 35 1922 (per ton) $75 -$ 1 0 0 196 60 45 71.25 on January 7, 1925. Investments of reporting banks at the beginning of July were larger in volume than ever before. In general, there has been little necessity for borrow ing at the R e serve Bank during the past half year. R E P O R T I N G M E M B E R B A N K S — T w elfth D istrict (Figures are in millions of dollars, numbers in parentheses indicating percentage changes.) C on d ition C h an ge July 8, from O n e 1925 M o n th A g o T o ta l L o a n s ............ 1,114 + 1 4 ( 1.3) C o m m e r c ia l L o a n s . 864 + 4 ( 0 .4 ) I n v e s tm e n ts ............ 454 + 1 ( 0 .3 ) D em a n d D e p o s it s .. 767 + 8 ( 1.1) T o t a l D e p o s it s ......... 1,559 + 1 9 ( 1.2) B o r r o w in g s fro m F e d e ra l R e s e rv e B a n k ...................... 27 + 7 (3 4 .4 ) C h an ge from Six M o n th s A g o +73 ( 7 .1 ) +42 ( 5 .1 ) + 18 ( 4 .2 ) — 28 ( 3 .5 ) + 73 ( 4 .9 ) C h ange from O n e Y ear A g o + 1 0 0 ( 9 .9 ) + 59 ( 7 .3 ) + 98 ( 2 7 .5 ) + 36 ( 4 .9 ) + 1 9 5 ( 14.3) + 17 (1 8 1 .2 ) + 16 (1 4 0 .3 ) M IL L IO N S O F D 0 L L A Q S * G ro w e r s ’ A s s o c ia t io n o ffe r in g p rice . fC a n n e rs are ch a rg e d a $3.00 se r v ic e fe e in a d d itio n . Prices of non-ferrous metals, including cop per, lead, silver, and zinc, increased during June and early July. Silver sold for 6 9 ^ cents per ounce on July 16, 1925, the highest price paid for this metal since November, 1924. Copper prices averaged 13.4 cents per pound during June, continuing the advance begun in April, 1925. Lead and zinc prices turned up ward during the month, after having declined 21.5 per cent and 9.7 per cent, respectively, during the first five months of the year. The lumber price index number of the Lumber Manufacturer and Dealer advanced slightly from 29.73 on June 10, 1925, to 29.87 on July 10, 1925. On July 10, 1924, it stood at 29.41. Banking and Credit Situation Volum e of commercial loans of reporting member banks in the Twelfth Federal Reserve District increased slightly ($4,000,000 or 0.4 per cent) during the four weeks ending July 8, 1925. During the past four months, such loans have fluctuated at levels slightly above $850,000,000. Collateral loans continued the upward trend noted since October, 1924, and total volume of loans, at $1,114,000,000 on July 8, 1925, was the largest ever recorded. Total de posits increased by $19,000,000 (1.2 per cent) during the four weeks period, the increase in time deposits being slightly greater than the increase in demand deposits. A review of banking developments in the district during the first half of the year 1925 reveals a strong credit situation. Demand de posits of reporting member banks declined by $28,000,000 during the six months period, but time deposits increased by $107,000,000, or approximately 2.5 per cent per month. Total loans of the banks increased by $74,000,000 so that the ratio of total deposits to total loans was 140.0 on July 8, 1925, compared with 142.8 M e m b e r B ank C r e d it— T w e lfth D istrict Figures for 70 member banks in leading cities, as of last W ednesday of each month. Latest figures, June 2 4. Changes in the character and amount of re serve bank credit in use in the Twelfth Federal Reserve District during the four weeks ending July 15, 1925, were not significant. Discounts at the Federal Reserve Bank of San Francisco increased seasonally at the close of the fiscal year but later declined, and on July 15, 1925, were $1,000,000 (3.4 per cent) smaller in volume than on June 17, 1925. Total earning assets showed a net decline of $3,000,000 ^2.5 per cent) during the four weeks, a slight increase in holdings of United States securities being offset by a decrease in holdings of purchased acceptances. 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 (Figures are in millions of dollars, numbers in parentheses indicating percentage changes, C on dition July 15, 1925 100 T o t a l E a r n in g A s s e t s .......... D is c o u n t s .................................. 38 U n ite d S ta tes S e c u r itie s . . 44 P u rc h a se d A c c e p t a n c e s . . . 18 T o ta l R e s e r v e s ...................... 279 T o t a l D e p o s its ...................... 166 F e d e ra l R e s e r v e N o te C ir c u la tio n ........................... 201 C h an ge from O n e M on th Ago — 3 ( 2 .5 ) — ( 3 .4 ) ( 5 .8 ) — 4 (1 6 .9 ) + 13 ( 4 .8 ) ( 3 .7 ) 1 + 2 + 6 + 4 ( 2 .0 ) C h an ge from O ne Y ear Ago + 2 7 ( 3 6 .4 ) + 16 ( 6 9 .3 ) — 4 ( 8 .4 ) + 14 (4 5 5 .9 ) — 24 ( 8 .0 ) + 8 ( 5.0) — 5 ( 2 .3 )
@FedFRASER