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M O N T H L Y R E V IE W OF B U S I N 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. VII San Francisco, California, June 16, 1923 Summary o f National Conditions Production and shipment of goods continued in heavy volume during May. The volume of employment was sustained and many wage ad vances were reported. Wholesale commodities declined in price during May and the early weeks of June. Production. Production of iron and steel, cement, and petroleum was larger in May than in any previous month, and mill consumption of cotton was close to the previous maximum. The high level of production in these indus tries, together with increases in practically all other reporting lines, are reflected in an ad vance of two per cent in May in the Federal Reserve Board’s index of production in basic industries. In the building industry the value of building permits granted, which represents prospective building operations, declined in the principal cities of the country. Contract awards, however, which represent actual cur rent undertakings, continued to increase, though declines were reported in the New York and Chicago districts. This industrial activity has been accompan ied by a slight increase of employment at in dustrial establishments. The demand for labor was also reflected in a larger number of wage advances during the thirty-day period ending May 15th than in earlier months of this year, and average weekly earnings in all reporting industries increased by 3.8 per cent. The ad vances were most general in the cotton, steel, meat packing, and sugar refining industries. In agriculture the condition of both winter and spring wheat is reported less favorable than a year ago, while the condition of the cot ton crop is slightly better than last year, owing entirely to more favorable growing conditions in Texas. Shortage of farm labor is reported from most sections of the country. M IL L IO N S PER 160 No. 6 O F D O LLA RS B I L L IO N S O F D O L L A R S 140 ________ M 120 100 ------------ 80 60 40 20 0 1919 1920 1921 1922 1923 Index of Production in Basic Industries Combination of 22 individual scries corrected for seasonal variation (1919 average = 100 per cent) Prices Bank Credit Bank Credit Index numbers of wholesale prices. United States Bureau of Labor Statistics (1913 average— 100 per cent) All Federal Reserve Banks 800 member banks in leading cities A substantial, black, cloth-covered, three-ring binder, large enough to contain one year’ s (12) issues o f this review, will be mailed prepaid to any address on our mailing list upon receipt o f one dollar to cover actual costs. 82 M O N T H L Y R E V IE W OF B U SIN E S S C O N D IT IO N S Trade. Active distribution of commodities is indicated by a heavy rail movement of mer chandise and miscellaneous freight, and carloadings continue to exceed all previous rec ords for this season. In certain lines of trade a decline in the volume of manufacturers' or ders for future delivery is reported. The vol ume of both wholesale and retail trade was larger in May than in April. Among the whole sale lines sales of meat, hardware, and shoes showed particularly large increases, while sales of clothing and drygoods decreased. The Federal Reserve Board’s index of whole sale trade which makes no allowance for seasonal changes, was 5 per cent higher in May than in April and 14 per cent higher than a year ago. Sales of department stores in creased about 8 per cent in May, and all re porting lines of chain store business reported increases. Mail order sales were 6 per cent less than in April, but were larger than in any pre vious May. Wholesale prices. Price declines were re ported during May and the first three weeks of June for a large number of commodities. All of the nine groups in the Bureau of Labor Statistics index, except food and house furnish ings, show decreases for May, and the average for all commodities declined 2 per cent. Bank credit. Loans of reporting member banks in principal cities, which had been in creasing since the early part of the year, de clined by $115,000,000 between May 16th and June 13th. Bank holdings of government secur ities, which increased by over $100,000,000, in connection with the Treasury transactions of May 15th, later declined as the securities were distributed by the banks. These decreases in loans of member banks and the receipt during May of $45,000,000 of gold from abroad were accompanied by a de crease in the earning assets of Federal Reserve Banks by $120,000,TOO for the four weeks end ing June 20th. A t that time the volume of Fed eral Reserve Bank credit in use reached the lowest point since the opening of the year and approached the low point reached in August, 1922. Reserve bank holdings of bankers’ ac ceptances and government obligations are now lower than at any time since January, 1922. The total volume of money in circulation in creased by $38,000,000 between May 1st and June 1st, the increase being chiefly in gold and silver certificates rather than in Federal Re serve Notes. Money rates continued to show a slightly easier tendency. The June 15th issue of $150,000,000 six months Treasury Certificates car ried a rate of interest of 4 per cent, compared with 4 % per cent on a similar issue sold in March. Summary of District Conditions During May production and distribution pro ceeded at levels only slightly below those of the first quarter of the year, such declines as were noted compared with April having been largely seasonal. The business situation has been characterized, nevertheless, by a spirit of caution which best finds expression in figures showing the movement of bank funds during the month. Total loans of 66 reporting member banks in the principal cities of the district, which had increased nearly $100,000,000 during the four months ending May 9th, advanced only $9,000,000 during the four-week period ending June 6th. Investment holdings of the same banks declined by approximately $5,000,000 during this latter period, so that the total volume of credit advanced by the banks in all forms increased but $4,000,000, compared with increases of $18,000,000 and $35,000,000 during April and March, respectively. Accompanying this diminishing demand upon member banks, discounts of the Federal Reserve Bank of San Francisco declined from the recent peak of $68,000,000 to $61,000,000 on June 13th. The Reserve Bank also sold some of its investments during the past month, its combined holdings of acceptances and United States Government securities declining from $58,500,000 on May 16th to $44,000,000 on June 13th, so that total earning assets on that date at $104,801,000 were 16 per cent less than the $124,904,000 held on May 16th. No such check in productive activity has been noted. The lumber mills of the district were operated at greater than single shift capa city during May. New orders received and shipments made were less than production, but stocks of lumber held in mill yards generally are still below normal. The mines of the dis trict produced metal in slightly increased quan tities as new equipment was placed in opera tion and recently recruited labor forces gained in experience. Building activity continued un abated. The value of permits issued during May was 10 per cent greater than the value of those issued during April, and the number was practically the same. The May figures were but little below the record month of March, 1923. Another new record of petroleum pro duction in California was set during May, but the increase over the previous month was the smallest reported this year. Further accumu lation of stocks of oil carried storage holdings from 68,935,000 barrels on May 1st to 69,480,000 barrels on June 1st, but this increase was also the smallest reported in recent months. Efforts of the larger operators to curtail pro duction were continued. Full employment of labor is reported from all sections of the dis- FEDERAL RESERVE A G E N T A T S A N FR A N C ISCO trict, and the demand for workers increased as seasonal labor requirements multiplied. The volume of business transacted in the district during May, 1923, as indicated by debits to individual accounts at banks in 21 cities, was 20.8 per cent greater than during May, 1922, this increase being approximately the same as the increases reported in previous months of this year when comparisons have been made with corresponding months of 1922. Sales at retail, as reported by 34 department stores, were 10.3 per cent greater in value dur ing May, 1923, than during May, 1922, and, excepting the month of December in each year, were greater in value than in any month of the past four years. A t wholesale the movement of goods showed a seasonal decline in many lines, but with the exception of agricultural imple ments continued greater than one year ago. In eight of the eleven lines which report their sales to this bank the value of sales increased 15 per cent or more during May, 1923, as compared with May, 1922. The number of business fail ures increased during the month, but small concerns were chiefly involved, the total amount of liabilities reported being less than in any month since January, 1922. The general level of prices declined slightly during May. The index number of wholesale prices published by the United States Depart ment of Labor stood at 156 for the month, a decline of three points, or 1.9 per cent from the previous month. Certain price discrepancies continued in the agricultural products group, some commodities selling at prices below those of a year ago, while others were quoted at prices w^ell above the prices of May, 1922. Prices of the non-ferrous metals, including cop per, lead, and zinc, again declined, and are now approximately 15 per cent below the recent peak of March, 1923. Weather conditions have been generally favorable for the growth of farm crops and of feed for livestock. The condition of the grow ing grains improved in all states of the district during May. A yield of wheat well in excess of last year’s short crop is now reported to be in prospect. Shearing of wool has been com pleted and 75 to 80 per cent of the total clip of approximately 78,000,000 pounds has been sold by the growers at the highest prices received since 1919. Livestock generally are reported to be in good condition and marketing is pro ceeding in an orderly manner. Crop Conditions Favorable growth of all grain crops of the district during May was reported by the United States Department of Agriculture. In the Pacific Northwest, general rainfall during the 83 last week of the month greatly benefited the growing crops, and in a few small areas of de ficient rainfall prevented actual losses from drought. Light rains in some parts of Califor nia and the soil moisture stored from earlier rainfall assisted the healthy growth of wheat, barley, and other grain crops in that state. Basing its estimates upon the present acre age and condition of winter and spring wheat, the Department of Agriculture’s report places the 1923 yield of all wheat in the principal grain growing states of the district at 122,929,000 bushels, compared with a final 1922 yield of 97,453,000 bushels. In 1922 the yield was estimated at 110,152,000 bushels on June 1st, but unfavorable weather conditions in suc ceeding months reduced the size of the crop. The estimated yield of all wheat for the United States is now 816,580,000 bushels, com pared with a final yield of 862,091,000 bushels in 1922. The Department’s estimate of the con dition of winter and spring wheat, and of the acreage planted to spring wheat during 1923 and 1922, both in this district and in the United States, are herewith reproduced: -Spring WheatCondition Condition (P«r Cent of Normal) Acreage Sown* June May June June June 1923 1922 1,1923 1,1923 1,19221.1923 1,1922 (acres) (acres) California ... Idaho ........... O r e g o n ........ U t a h .............. W ash ington. 91 96 97 93 92 88 92 95 90 88 90 85 90 91 79 97 95 94 92 91 85 92 83 693 237 131 1,060 679 249 135 1,000 T o t a l s ........................................................... 2,121 2,063 United States 76.3 80.1 81.9 90.2 90.7 18,503 19,103 *000 Omitted. Farmers of the district have sown less wheat this season than was planted last year, the de crease being due in some measure to the slug gish wheat market which has prevailed during most of the period since the 1922 crop was har vested. A tendency to plant the coarser grains and hay in fields formerly sown to wheat has been reported, particularly in sections of the Pacific Northwest and the Intermountain States. The following table gives United States Department of Agriculture estimates of the total 1923 plantings, the 1922 acreage, the estimated 1923 yield, and the 1922 yield of all wheat, barley, and oats in the principal grain raising states of this district: Estimated Acreage 1923 Acreage 1922 Estimated Yield 1923 Yield 1922 (acres) (acres) (bushels) (bushels) All W heat. 5,637,000 5,648,000 Barley . . . . 1,376,000 1,409,000 Oats ......... 885,000 867,000 122,929,000 97,453,000 45,018,000 44,357,000 34,956,000 29,394,000 W heat markets of the district continued rela tively inactive during May. The export move ment of wheat from Portland and the Puget 84 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S Sound ports from July 1, 1922, to June 1, 1923, has totaled but 17,845,964 bushels, compared with shipments of 39,945,212 bushels from July 1, 1921, to June 30, 1922, and of 25,353,220 bushels during the corresponding period of the 1920-1921 cereal year. Commercial factors esti mate that on June 1st unsold holdings of wheat (exclusive of wheat held on farms) in the Pacific Northwest totaled between 7 and 9 per cent of the 1922 crop of that section, 76,463,000 bushels. Although present unsold stocks are no greater in volume than those held on June 1, 1922, the proportion of the crop remaining to be marketed is nearly twice as large as a year ago. Commercial estimates place unsold holdings of wheat in California on June 1, 1923, at 1,460,666 bushels (exclusive of wheat held on farms), compared with a carryover of 952,366 bushels on June 1, 1922. The accompanying chart shows the trend of wheat prices on the Chicago and San Fran cisco markets during the past year. On June 15th the price of milling wheat in San Fran cisco was $1.90 per cental ($1.14 per bushel), compared with $2.00 per cental ($1.22 per bushel) on June 15, 1922. Weekly range in price« at Chicago for No. 2 hard wheat (per bushel) and at San Francisco for milling wheat (per cental) during 1922*1923 cereal year It is estimated that 1,099,000 acres of barley will be harvested in California during 1923, a decrease of 5 per cent from the 1922 acreage. The United States Department of Agriculture reports the condition of the crop in that state on June 1st as 91 per cent of normal, compared with an estimated condition of 89 per cent of normal one year ago. Based upon the present condition of the acreage sown, the government estimates the 1923 yield of barley in California at 35,498,000 bushels. Production in 1922 was 36,864,000 bushels. Although barley is re ported to have been in but moderate demand during recent months, commercial estimates indicate that holdings in California (exclusive of barley held on farms) on June 1st were 1,572,208 bushels, or 19.8 per cent less than the carryover of 1,962,750 bushels held on the same date last year. Late spring planting operations, generally favored by good weather, are rapidly being completed in all states of the district. Growing crops are uniformly reported in better condi tion than a year ago. The condition of the cotton crop on May 25th, as reported by the United States Department of Agriculture, was 93 per cent of normal in California and 92 per cent of normal in Arizona, compared with a condition of 84 per cent and 81 per cent, re spectively, a year ago. The government's crop report places the condition of sugar beets on June 1st at 90 per cent of normal in California and 95 per cent of normal in Utah. One year ago the condition of this crop was reported as 85 per cent of normal in California and 88 per cent of normal in Utah. Early planted beans in California are reported to be growing well. Planting of this crop usually continues throughout the month of June. No uniformity is apparent in reports con cerning the deciduous fruit crops of the dis trict, but in general the yields of apples, apri cots, and plums are expected to be larger than in 1922, and the yields of other fruits smaller than last year. In California the crop of pears was greatly reduced by excessive dropping of immature fruits during May, the Department of Agriculture placing the condition of the crop at 75 per cent of normal on June 1st, com pared with a reported condition of 90 per cent of normal on May 1st. The outlook for the peach crop of the district improved during May, but the yield is still placed below that of last year. In California the Department of Agricul ture states that the present condition of the crop indicates a yield of 390,000 tons. Production in 1922 was 420,000 tons. It is reported that the peach crops in many of the principal producing states of the East have been seriously injured by frosts during recent weeks. Prices for canning peaches have been set by the canning peach growers' association of California at $45 per ton for number one clingstone peaches and $35 per ton for Lovell freestone peaches, a re duction of $15 and $10, respectively, from the prices named in 1922. In the Pacific North west, the apple crop is reported to be in excel lent condition, with a 1923 commercial yield of apples in Washington, the principal producing state of the district, forecasted at 23,991,000 boxes, compared with 21,312,000 boxes pro duced in 1922. The present condition of the apple crop in California indicates a yield of 6,384,000 boxes, compared with the 1922 pro duction of 7,656,000 boxes. Practically all of the 1922-1923 Navel orange crop of more than 10,000,000 boxes had been shipped from California by June 1st. The V al encia orange crop, which is now moving to market, is also expected to total over 10,000,000 boxes. Approximately 15 per cent of this crop FEDERAL RESERVE A G E N T A T S A N FRA NC ISCO had been shipped by the first of June. Total shipments of oranges and lemons up to June 1st of the past two seasons have been as fol lows . Nov. 1st to June 1st 1922-1923 1921-1922 (care) Oranges ............................................... 32,526 Lem ons ................................................ 4,720 (cars) 21,818 5,863 Livestock The mild weather of recent weeks has favored the growth of grasses and forage crops on the summer ranges of the district, and the condition of livestock generally has improved. Seasonal dry spells in some sections of Arizona have been unfavorable to the livestock indus try in the areas affected, but the situation has not become serious. Spring lambing has been practically com pleted in all sections of the district, with an in crease reported to be larger than normal. The average increase is from 80 to 85 per cent of the number of ewes bred, but this year in creases of 90 per cent have been common, and THOUSANDS 400 300 200 100 1922 1923 Receipts of Livestock at Eight of the Principal Markets of the District 1922-1923. (Los Angeles, Ogden, Portland, Salt Lake City, San Francisco, Seattle, Spokane, and Tacoma included) in many districts the increase is reported to have approximated 100 per cent. The bulk of the spring lambs raised in California has al ready been marketed, approximately 300,000 head having been shipped from that state by June 16th. In the northern states of the dis trict the lamb shipping season began about the first of June, and lambs from these states are just beginning to reach eastern markets. A significant feature of the reports received from sheep raising districts is that sheep-men generally are retaining a larger number of ewe lambs for the purpose of building up their flocks than has been the case for some years past. A t the same time they are disposing of many old ewes which have passed the age of greatest productivity, and which have only been held during the past two or three years because ewe lambs had to be sold to assist growers to obtain working capital. The im provement in the sheep raising industry which this situation suggests has been counterbal anced in some sections, particularly in Idaho, by the increasing cost and scarcity of desirable range land and the inability of growers to secure capable herdsmen. Receipts of all classes of livestock at eight principal markets in this district during May, 1923, were considerably larger than during May, 1922. A marked seasonal increase in the receipts of sheep during May, 1923, as com pared with April, 1923, was noted. Receipts of Livestock at Eight Principal Markets Cattle Calves Hogs M ay, 1 9 2 3 .... 67,895 April, 1 9 2 3 .... 65,824 M ay, 1 9 2 2 .... 58,465 20,511 17,269 14,611 170,364 178,937 125,742 Sheep 440,028 214,977 403,390 Prices for all classes and grades of livestock at the principal markets of the district tended slightly downward during May. W ool 500 0 85 Shearing of wool in this district had been practically completed by June 15th, and with 75 to 80 per cent of the clip already sold, activ ity in the wool growing sections has subsided. The total clip is now estimated at 78,000,000 pounds, a slight decrease compared with early season estimates, but still 4,000,000 pounds in excess of the 1922 clip. Prices paid producers for wool during the past season have been higher than at any time since 1919 and 1918, when the record figure of 60 cents per pound was reached. Early in the present season buyers entered the field and offered growers from 30 to 40 cents per pound for their wool, the price depending partly on the grade and the cost of transportation to con suming centers. It is reported that very few sales were made until after shearing, however, when prices had advanced to a range of from 40 to 55 cents per pound. One year ago the same wools sold at from 25 to 42 cents per pound. Buyers have not been active during the past month but prices have held steady. Woolen mills in the United States consumed approximately 229,500,000 pounds of wool (grease equivalent weight) during the first quarter of 1923, compared with an estimated consumption of 194,000,000 pounds during the first three months of 1922. Both worsted and woolen spindles have been operated at nearly 100 per cent of single shift capacity during the past six months, and manufacturers report that orders booked are sufficient to continue capa city operations of their mills during the next 86 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S few months. Heavier imports of wool have ac companied increasing wool consumption. Dur ing the eight months ending February 28, 1923, wool imports totaled 307,000,000 pounds, com pared with imports of 122,000,000 pounds dur ing the eight months ending February 28, 1922. Dairy and Poultry Products There was a large seasonal increase in butter production during May, and a considerable proportion of the output was placed in cold storage. Holdings of cold storage butter at the four principal markets of the district on June 1st were nearly four times as large as on May 1st, and 13.0 per cent larger than on June 1, 1922. Butter prices continue approximately 25 per cent higher than one year ago. The heavy movement of eggs into cold stor age noted during March and April continued during May, and holdings in cold storage ware houses of the principal markets of the district were increased by 63.5 per cent during the month. On June 1, 1923, they were 11.3 per cent greater than on June 1, 1922. On the San Francisco wholesale market extra grade eggs are now (June 15th) selling at 27 cents per dozen. One year ago they sold for 26 cents per dozen. A summary of the cold storage holdings of butter and eggs in the chief markets of the Twelfth Federal Reserve District is presented in the following table: June 1, 1923 May 1, 1923 Butter (p o u n d s). 2,041,196 532,956 E ggs ( c a s e s ) .... 514,751 314,697 April 1, 1923 June 1, 1922 66,173 1,805,178 145,204 462,215 the pack of which exceeds that of any other single variety, has not been as active as for the lower grades of fish, partly due to the fact that foreign markets, which in past years have taken a considerable part of the American pack of this variety, have been unusually well sup plied with Red Salmon from Canadian and Siberian waters. Published prices on this grade of salmon have remained unchanged through out the season. Packers' quotations on the principal varieties of canned salmon, as of the date of opening prices and on June 1, 1923, are given below (all quotations f. o. b. Pacific Coast points): SpotPrice 0penini Variety June 1.1923 Price, 1922 (Pcr ’doz. No, 1 tall cans) (Perdoz. No. 1 tall cans) Alaska Reds ...................................... $2.25 Medium Reds (C o h o s ).................. 1.50 P i n k s ...................................................... 1.30 Chums .................................................. 1.25 $2.25 1.35 1.25 1.05 Basing their estimates on the preparations made by canners for the present fishing and packing season, commercial factors report that the 1923 pack of salmon in United States waters will be approximately equal to last year's pack. Several of the most important fishing districts in Alaskan waters have been placed in fishery reservations by the United States government during the past year, and this fact, combined with more stringent regu lations of fishing in all waters, may operate to restrict the forthcoming pack. It is the general opinion of those engaged in the industry, how ever, that the effect on this year’s pack will be small and that the possibility of large packs in the future will be greatly improved by the gov ernment regulations. Salmon Prices The 1922 salmon pack of approximately 5,178,000 cases has been marketed at firm or rising prices during the year just closing and present unsold stocks, with the exception of the Alaska Red variety, are reported to be un usually small. This latter variety made up approximately 40 per cent of the total pack, the other 60 per cent consisting chiefly of cheaper grades of fish— Medium Reds, Pinks, and Chums. The market for canned salmon has been ac tive during the present season. Abnormally heavy stocks of the lower grades of salmon, which had depressed the market during 1921 and the first half of 1922, were largely disposed of before the 1922 pack became available for distribution. Following the sale of these sur plus stocks of the cheaper grades of salmon at comparatively low prices, a demand for them continued throughout the 1922-1923 marketing season, and prices advanced as the season pro gressed. The demand for canned Red Salmon, W ide divergencies among prices of farm products continued during May. Producers are now receiving less for wheat, rice, fresh and dried deciduous fruits, oranges, hogs, and sheep than they were paid a year ago. Another group of products of the farm, including barley, sugar, cotton, lemons, wool, dairy and poultry products, lambs, and cattle, is selling at prices well above those paid in May, 1922. The gen eral level of wholesale prices has advanced 5.4 per cent during the past year. The average of 98 wool quotations on the Boston market advanced fractionally during the month, and at 83.93 cents per pound on June 1st was 17.4 per cent higher than one year ago. The price of refined beet sugar on the San Francisco market declined from the high point of $10.05 per hundred pounds reached on April 30th to $9.90 per hundred pounds on May 3rd and stood at the latter figure until June 11th, when a further decline carried it down to $9.70 per hundred pounds, the present (June 87 FEDERAL RESERVE A G E N T A T S A N FRA NC ISCO 16th) quotation. Cotton prices (spot quota tions on middling upland cotton at New Or leans) advanced slightly during May, and are now approximately 40 per cent higher than a year ago. Rice advanced moderately in price during the month. The downward trend of prices of the nonINDEX NUMBERS ferrous metals noted during April continued during May. The price of copper declined 1fys cents per pound, and lead and zinc prices were fractionally lower. Present prices of copper, lead, and zinc are, respectively, 15.1, 13.5, and 18.1 per cent lower than in March, 1923, the recent peak, but remain 6.3, 28.9, and 20.7 per cent higher than in June, 1922. M illing Inactivity in the flour market has caused fur ther curtailment of the operations of millers of the district. Production of 47 reporting mills during May, 1923, at 511,834 barrels, was 9.1 per cent less than production during April, 1923, the principal declines being reported by mills in the state of Oregon. Per Cent No.of Mills Reporting May. April, 1923 1923 Wholesale Prices and the Cost of Living, 1920-1923 United States Bureau of Labor Index of Wholesale Prices (1913=100) National Industrial Conference Board Index of the Cost of Living (July 1914=100) California . . . 10 Idaho .............. 3 Oregon .......... 16 W ashington . 18 10 3 17 16 47 46 District <------ Output -------» May, April, 1923 1923 (barrels) (barrels) Decrease May. 1923 Compared with Apr., 1923 201,150 214,879 6,362 8,912 85,687 115,118 218,635 224,651 6.3 28.6 25.5 2.7 511,834 563,560 9.1 (A) Commodity Prices— Commodity Tw enty Basic Commodities (F . R. B. of N. Y .) 1913=100. W holesale Prices (U . S. Bureau of Labor*) 1 9 1 3 = 1 0 0 ____ Cost of Living (National Industrial Conference Board) July, 1 9 1 4 = 1 0 0 ....................................................................................... Cattle (Native Be e f ) . . .W e e k ly average price at C h ica g o.. Sheep ................................. W eek ly average price at C h ica g o.. Lambs .................. H o g s ...................... W h e a t ......... .. .Chicago contract prices for July W h e a t .. B a r l e y .................. .Shipping Barley f. o. b. San F ra n c isc o ... Rice ...................... .California Fancy Japan at San Francisco C o t t o n .................. .M iddling Uplands— W eek ly range of spot quotations at N ew O rleans......................... W o o l .................... .Average o f 98 quotations at B osto n ......... Flour .................... .First Grade Family Patent f. o. b. Pacific Coast mills ........................................................ Sugar ................... .B eet granulated f. o. b. San F r a n c isc o ... Oranges ............. .Valencias, Special brands, L os A n g e le s.. Lem ons ............... .L o o se pack at Los A n g e le s........................... Dried A p p le s .... .Choice in 50-lb. boxes f. o. b. California.. Dried A p ricots.. .Choice in 25-lb. boxes f. o. b. C aliforn ia.. Prunes ................. .Size 40 /50 in 25-lb. boxes f. o. b. C a lif... R a is in s ................. .L o ose Muscatel, 25-lb. boxes f. o. b. Calif. Canned Apricots.C hoice 2 ^ s f. o. b. California...................... Canned Peaches. .C ling Choice, 2j^s f. o. b. California......... Canned P e a rs... .Bartlett, Standard 2 ^ s f. o. b. California. Raw M ilk ...............Pacific Coast— M ay average........................... Butter .....................93 score at San Francisco............................... E ggs .................... .Extras— San Francisco..................................... Copper ___ ._____ .Electrolytic; N ew Y ork S p o t...................... Lead .................... ..N ew Y o rk S p o t................................................... Silver .....................N ew Y o rk Foreign .......................................... Zinc ........................ .East St. Louis S p o t............................................. Petroleum ........... .California 35° and above............................... D ouglas F ir ...........2x4, 16-ft. N o. S1S1E f. o. b. Seattle......... Douglas F ir ...........12x12 Tim bers f. o. b. Seattle...................... "R evised figures, f 1923 Prices. Unit June 1. 1923 One Month Ag« One Year Ago 157.6 156.0 100 100 100 100 lbs. lbs. lbs. lbs. bu. cental cental lb. lb. bbl. lb. box box lb. lb. lb. lb. doz. doz. doz. 100 lbs. lb. doz. lb. lb. oz. lb. bbl. M ft. M ft. 157.4 159.0 159.1 160.3 $ 9.05 $ 9.85 8.35 6.50 13.75 13.50 8.00 7.10 1 .0 9 ^ -1 .1 3 % 1 .1 7 ^ -1 .2 0 1.60-165 1.35-140 4.30 4.45 28.00-28.50tf 83.93tf 7.56 9.90 3.75-4.50 3.00-3.50 .06y2 t .l 2 ^ - . 12 ^ . 10 ^ - . l l .11 3.30 2.75 2.75 2.69 .4 4 ^ .32 .1434 7.35tf .655/6 6.40* 1.04 23.50 26.00 27.00-28.25tf 83.49tf 7.79 9.90 4.00-4.50 3.00-3.25 .0 7 ^ - .0 7 ^ t-14^2 .io¿4- .n .11 3.30 2.75 2.75 2.75 .4 3 ^ .32 .1 6 ^ 7.75tf .6734 7.00-7.05tf 1.04 23.50 26.50 138.1 148.0 154.9 $ 8.40 7.10 12.20 10.45 1.18-1.1924 1.35-1.40 4.85 20.50# 71.44# 8.14 5.90 7.50-8.00 2.50-2.75 Nom inal .24 . 12 % - . 129Í •15 H 3.00 2.60 3.00 2.16 .3 8'/2 .2 7 y í •13H 5.70# ■71H 5.30# 2.45 14.50 17.00 88 M O N T H L Y R E V IE W OF B U S IN E SS C O N D IT IO N S The production of 16 large milling com panies, for which a continuous record is kept, was 302,129 barrels during May, 1923, a de crease of 23.7 per cent when compared with the output of 396,348 barrels during April, 1923, but an increase of 7.8 per cent over their pro duction during May, 1922. Millers accumulated small amounts of wheat in the low markets of the past month, and stocks held by 16 reporting mills amounted to 2,288,340 bushels on June 1st compared with 2,243,886 bushels held on May 1st. Present M IL L IO N S OF B U S H E L S 5 Practically all lumber manufacturing plants in California, Oregon, Washington, and Idaho were in operation on June 1, 1923. Mills in the four lumber associations in this district oper ated at approximately 120 per cent of their single shift capacity during May, 1923. One year ago mills operated at approximately 100 per cent of capacity. During May, for the sec ond consecutive month, production exceeded shipments and new orders, with a consequent slight increase in total stocks of lumber at pro ducing centers, raising them on June 1st to more nearly normal levels than have been re ported for some months past. Figures showing the activity of reporting mills follow (000 omitted) : May, 1923 (board feet) April, 1923 (board feet) May, 1922 (board feet) Production ......... Shipments ......... . . 6 8 0 ,1 9 3 6 4 6 ,5 0 8 5 3 6 ,2 6 0 6 1 8 ,5 3 4 6 3 0 ,5 9 6 5 1 5 ,5 2 3 5 3 5 ,2 9 9 6 0 1 ,1 8 4 5 5 7 ,3 3 3 Unfilled Orders . .. 5 6 1 ,6 9 0 6 3 9 ,4 3 0 5 8 4 ,2 4 8 The domestic market for Pacific Coast lum ber was less active during May than during April, 1923, as evidenced by the decline in new MILLIONS OF BOARD FEET 700 r/ i \ ft* // > _ /» Monthly Floor Output, and Stocks ol Wheat and Flour at End of Month, of 16 Reporting Milling Companies stocks of wheat at these mills are 30 per cent larger than stocks held on June 1, 1922. Stocks of flour continue to decline as the new milling season approaches. A t 517,704 barrels on June 1, 1923, the holdings of 16 mills were 23,500 barrels less than on May 1, 1923, and approxi mately equal to stocks held on June 1, 1922. Lumber The urgent demand for lumber, which re sulted in capacity operation of the saw mills of the district during recent months, slackened during May. Although the amount of new business entered on the books of the mills con tinued ample to insure full time operation, it was less in volume than in any previous month of the present year and also less than in May, 1922. W ith the exception of October, 1922, when a shortage of freight cars caused mills to refuse a certain amount of new business, this is the first time since July, 1921, when orders received during the current month have been less in volume than in the corresponding month of the previous year. 100 oenniiirTiow SHIPMENTS-------ORDERS •- * » _l----1— I—1-1— L 1_I i. -L .1 _L .1_L _L._1 . 1. L. L J _L 1..I. ,1. .1 1922 1 1923 Lumber Production, Orders Received, and Shipments in Twelfth Federal Reserve District as Reported by Four Lumber Associations. 1922-1923 orders noted above. Buyers are purchasing conservatively, meeting their needs, where pos sible, with “mixed” cars of lumber rather than with straight carload lots. In the foreign mar ket approximately the same volume of new business was transacted during May, 1923, as during April, 1923, or May, 1922. The princi pal foreign buyers were Japan, Australia, South America, and China. The general level of prices for lumber (f. o. b. mills) changed little during the month. Compared with prices on June 1, 1922, present price quotations are considerably higher on most items. Prices (f. o. b. mills) of represen tative items of Douglas fir as of June 1, 1923, May 1, 1923, and June 1, 1922, are shown be low. These price quotations indicate the pre 89 FEDERAL RESERVE A G E N T A T S A N FRANCISCO vailing trend and the general basis upon which orders have been negotiated. June 1, 1923 Douglas F ir: (p e r M b .f.) Flooring, 1x4 No. 1 V G $60.00 Ceiling J*x4 N o. 2 & B 44.00 Drop Siding, 1x6 No. 2 & B ............................... 46.00 May 1, 1923 (p e r M b .f.) June 1, 1922 (p e rM b .f.) $60.00 43.00 $56.00 33.00 46.00 36.00 Boards and S /L 1x4 N o. I S I S ...................... 18.00 19.50 12.00 Planks and small tim bers 4x4-6 12/16 No. 1S4S ............................... 26.50 26.50 17.50 Log production in the Pacific Northwest in creased during May, 1923, compared with April, 1923, and was approximately 20 per cent greater than during May, 1922. The loggers’ strike which began late in April was short lived, curtailing output only temporarily. On May 7th a majority of the striking loggers had returned to work, and since that date there has been a steady increase in activity in all logging districts. It is estimated that 100 per cent of the logging capacity in the Pacific Northwest is now (June 16th) in operation. The log supply in all sections of the district has been reported sufficient to meet mill requirements. Of this number 47 are located in the Twelfth Federal Reserve District, their principal prod ucts being copper, lead, and zinc. The decline in prices of copper, lead, and zinc noted during April, continued during May, but average prices during the latter month were still well above those of a year ago. /------------ Average Prices — --------% May, 1923 April, 1923 May, 1922 Copper (lb.) (c e n t s) N ew Y o rk Electrolytic. 15.69 Lead (lb.) 7.30 N ew Y o r k ............................ Silver (oz.) N ew York F oreign ......... 67.04 Zinc (lb.) St. L o u is.............................. 6.62 (c e n t s) (c e n t s) 16.91 13.36 8.10 5.42 66.85 71.54 7.19 5.11 Petroleum Although production of petroleum in Cali fornia during May, 1923, at 694,689 barrels per day, exceeded all previous records, the increase compared with April, 1923, amounted to but eight-tenths of 1 per cent, the smallest monthly increase reported this year. This check in the rapidly rising curve of production reflects the MILLIONS 200r Mining Activity in the mining industry, which has been a feature of the industrial situation during the past year, continued during April, 1923, and reported production and shipments of the principal non-ferrous metals were greatly in excess of the figures for April a year ago. Fig ures showing the national production of cop per, silver, and zinc, three of the most impor tant metals produced in this district, are pre sented in the following table : 100 Copper (lbs.) April, 1923 Mar., 1923 April. 1922 (mine production) 118,423,571 122,193,969 77,025,860 Silver (oz.) (commercial bars) 6,615,535 6,109,841 4,138,580 Zinc (tons) (slab) .................... 46,866 40,480 25,506 10 Figures for lead are not available. An announcement of considerable import ance to metal producers of the district was that of the United States Treasury made public on May 29th, suspending purchases of silver from domestic mines under the Pittman Act. Pur chases thus far made by the Treasury approxi mate 208,000,000 ounces of silver, at the fixed price of $1.00 per ounce. The average open market price of silver during May, 1923, was 67 cents per ounce. There are approximately 62 large mines in the United States which are not exclusively silver producers, but whose ore product contains silver in varying proportions. 60 60 S 'rO C K S STO RED - OF G A S O L E N E (G A L L O N S ) — jf \ V 40 / , * S T O R E D S ’r O C K S O F P E T R O L E U M (B B L S .) 20 a . - ' P E T R O L E U M PRO DUC1r i O N ^ * < (B B L S) j P E T R O L E L M S H IP M E N T S (B B L S .) — — 1922 ____________ ^ 1923 CALIFORNIA Production, Shipments, a n d Stored Stocks of Petroleum, and Refinery Stored Stocks of Gasolene. 1922-1923 efforts of operators to limit output to existing consumptive demand and storage facilities. In the older fields development work has been practically discontinued for some time past, and recently many producing wells have been closed in. Active drilling has continued, how ever, in the newer fields of Southern California, where production is highly competitive and the number of small operators is large. Fiftysix new wells, with an initial daily production of 96,420 barrels, were completed during May, M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S 90 1923, and 24 wells abandoned, a net increase of 32 producing wells during the month. Shipments of petroleum increased in volume during May as compared with April, a normal seasonal movement. Average daily shipments totaled 677,175 barrels. Subtracting this figure from the average daily production of 694,689 barrels leaves a surplus of 17,514 barrels per day. Storage stocks of petroleum were conse quently further increased and stood at 69,480,405 barrels on June 1, 1923, compared with 68,935,559 barrels on May 1, 1923, and 42,041,461 barrels on June 1, 1922. Production of gasolene by refineries in Cali fornia averaged 3,414,000 gallons per day dur ing April, 1923, compared with 3,368,000 gal lons during March, 1923, and 1,700,000 gallons during April, 1922. The steady increase in storage stocks of gasolene in California, which had been in progress since July, 1922, did not continue during April, 1923. Total holdings of gasolene on May 1st were reported at 136,684,477 gallons, a decline of 1,374,303 gallons from the total of 138,058,780 gallons held on April 1st. On May 1, 1922, stored stocks of gasolene in California amounted to 65,841,000 gallons. Electric Energy In April, for the sixth consecutive month, sales of electric power for industrial purposes were more than 20 per cent greater than in the corresponding month one year ago. Figures for April, 1923, reported by 20 of the principal power companies in the district, show increases in sales of electric power to agricultural, lum bering, mining, manufacturing, and oil produc ing consumers, the total increase as compared with April, 1922, being 31.6 per cent. Percent age comparisons of sales by certain industries and by sections of the district are presented in the following table : Percentage Increase April, 1923, compared with April, 1922 Total Agricul Manu Industrial Mining facturing Sales ture C a lifo rn ia .................. 274.2 Pacific Northw est.. 64.7 Intermountain ___ 64.7 2.1 27.4 16.1 54.2 30.6 Tw elfth D is t r ic t ...,243.6 17.6 27.8 6.2 36.1 10.5 63.1 31.6 Sales of electric power to oil producers in California and to lumber mills of the Pacific Northwest were, respectively, 20.3 per cent and 42.8 per cent larger in April, 1923, than in April, 1922. Compared with March, 1923, total industrial sales of power during April, 1923, were greater by 14.7 per cent, a seasonal gain resulting largely from increased sales to farm users of power. The lumber industry in the Pacific Northwest, the( oil industry in California, and the mining industry in the Intermountain States also purchased more power during April, 1923, than during March, 1923. M I L L I O N S OF K IL O W A T T H O U R S 450r 400 / \ 1 9 2 2 350 / / \ \ \ / \ / I9 2 3 y 300 \ ♦ ' i i i 250 200 r ? i— r 1 1 1 L...... 1...... 1_ J .-1 .... , 1 . Total Industrial Sales (K. W. H.) of 20 Power Companies in Twelfth Federal Reserve District, 1922-1923 Figures showing the number of industrial consumers and industrial sales of reporting companies during April, 1923, and April, 1922, follow : Number of Industrial Consumers April, April, 1923 1922 ............... 56,821 49,266 Industrial Sales K.W. H. April, April, 1923 1922 California Pacific Northwest . . 11,686 Intermountain States 2,492 10,684 3,029 213,532 ,191 68,262,220 51,731,780 156,924,648 61,775,363 31,707,830 Tw elfth D is t r i c t ____ 70,999 62,979 333,526,197 250,407,841 Retail Trade The total value of sales of 34 reporting de partment stores in this district was 10.3 per cent greater during May, 1923, than during May, 1922. Excepting the month of December in each year, total sales during May, 1923, were greater in value than in any month during the past four years. Making due allowance for changes in prices at retail during this period it still appears probable that the physical volume of business transacted during May, 1923, was of record proportions. Comparing the value of sales during May, 1923, with similar figures for April, 1923, an increase of 18.1 per cent is noted. The records of this bank indicate that this is a normal seasonal movement reflecting the increased business resulting from special May “ sales.” Stocks of goods held by department stores on June 1, 1923, were 9.8 per cent greater in value than those held on June 1, 1922. Com parison of this increase with the reported in 91 FEDERAL RESERVE A G E N T A T S A N FR A N C ISCO crease of 10.3 per cent in the value of sales dur ing the year period is informing as to the physi cal quantity of merchandise now on the shelves of department stores and the rapidity of its turnover. The annual rate of turnover indicated by the figures for May, 1923, was 2.8 times per year, compared with an annual rate of turnover of 2.6 times per year in May, 1922. A detailed statement of the percentage changes in the value of sales and stocks of re porting department stores in this district fol lows : Percentage increase Percentage increase or decrease (—) in or decrease (—) in value of value of sales May, 1923 stocks May, 1923 compared with compared with No. of May, April, May, April, Stores 1922 1923 1922 1923 Los A n g ele s......... 6 Oakland ..................4 Salt Lake C i t y . . . 4 San F r a n c isc o ... 9 Seattle ................... ..5 Spokane ..................5 11.6 9.2 13.9 9.4 10.6 5.4 D is t r ic t * ........... 34 10.1 13.8 25.7 35.7 6.4 1.9 10.3 18.1 11.8 6.3 — 13.3 11.5 18.6 — 2.0 2.1 — 7.8 — 7.3 — 3.2 .2 — 1.1 9.8 — 4.0 *Figures for one store included in district figures, but not in cluded in figures for the cities shown above. MILLIONS OF DOLLARS 1 ............. agricultural implements, and in eight of the eleven lines amounted to 15 per cent or more. In response to a specific inquiry wholesale dealers have reported that retailers of this dis trict are purchasing goods to meet their cur rent needs only, and that there has been no evi dence of the placing of duplicate orders nor of speculation in the commodities which the wholesalers sell. Percentage increases or decreases (— ) in the value of May sales of all reporting firms in each line of business are presented in the following table: Fiv. M .c h . Number of Firms Agricultural Implements Autom obile Supplies___ Autom obile T ir e s............. Drugs ................................... D ry G oo d s........................... Electrical E q u ip m e n t... Furniture ............................ Groceries ........................... Hardware ........................... Shoes .................................... Stationery .......................... 23 19 19 9 15 5 16 28 20 14 29 Ending May May. 1923, 31,1923, corncompared with pared with May, Apr., same period 1922 1923 in 1922 — 5.0 24.2 2.8 16.8 19.0 24.1 29.4 7.1 23.8 16.4 19.7 — 1.5 3.3 — 5.9 3.7 .3 — 7.3 2.4 — 7.6 3.7 .6 — 2.0 17.0 25.8 33.4 11.5 33.9 35.2 38.7 15.0 36.3 19.7 21.0 The general level of wholesale prices, ac cording to the index numbers of the United I t 1 MAY P R IC E S 1922=100%= M A Y >922 SA LES I / U.S.BUREAU OF LABOR INDEX NO WHOLESALE PRICES 1 11 AGRICULTURAL IMPLEMENTS , t1 »\ *»» ^ 1923 / / V AU TO M O Bflf SUPPLIES \l9fi AUTOMOBILE TIRES X O / / / % v x / DRUGS V DRY G O O D S r. à ... " t u ..1 j __ 1... I rrrr n Net Sales of 31 Department Stores in Twelfth Federal Reserve District ( i n M illio n s of D o lla rs ) Wholesale Trade Some evidence of a decline in activity of trade at wholesale during May was contained in the reports received by this bank from 197 firms engaged in 11 lines of business in this district How much of this decline was seas onal and how much resulted from the general hesitancy of business during the past month cannot be accurately determined, but marked increases in the value of sales in at least eight reporting lines during May, 1923, as compared with May, 1922, indicate that the seasonal fac tor was probably of greatest importance. Such increases were reported for all lines except 20 40 60 100 120 140 160 Dollar Value of Sales of Representative Wholesale Firms and General Wholesale Prices in May, 1923, compared with May. 1922 States Department of Labor, was 5.4 per cent higher in May, 1923, than in May, 1922, and 1.8 per cent lower than in April, 1923. Collections during the past three months have been reported as follows: Number of Firms Reporting Collections as Excellent Good Fair Poor March, 1923......................... 5 April, 1923......................... 7 May, 1923......................... 6 53 50 69 69 74 60 13 10 6 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S A u t o m o b ile R e g is tr a tio n s Employment The total number of new automobiles pur chased in this district during the first four months of the year was nearly 100 per cent greater than the number purchased during the corresponding months of 1922. Insofar as sales of new automobiles indicate changes in the purchasing power of the community, these figures furnish significant evidence of improved business conditions. The figures for five states of the district are presented in the following Full employment of all available workers in the district was reported during May, 1923. Skilled laborers in all lines of work are in ac tive demand and unskilled workers are finding employment on the farms, in lumber camps, in mines, and in highway and general construc tion work. The need for building trades workers continues abnormally large. Com pared with May, 1922, employment during May, 1923, was greater in all sections and in dustries of the district. The strike of loggers and woodsmen called during the last week of April in the lumbering regions of the Pacific Northwest ended early in May, practically all of the men affected hav ing returned to work by June 1st. The number of men employed in the 10 principal lumbering districts of Idaho, Oregon, and Washington reached 92,000 on June 1, 1923, compared with 90,000 on May 1, 1923, and 85,000 on June 1, 1922. In the coast territory of Oregon and Washington a considerable number of men have found employment in the fishing indus try, which now enters upon its period of seas onal activity. In the Intermountain States (Arizona, Idaho, Nevada, and Utah) employ ment continues to increase. Full employment of unskilled workers and a few shortages of skilled miners and building trades workers have been reported. In California, in addition to the usual demands for workers in the indus tries mentioned above, there has been added the labor requirements of the canning and packing industry, which employs a large num ber of both men and women at this season. Recent trends of employment in manufactur ing industries are indicated in the following table, showing the total number of workers on the payrolls of 40 large manufacturing firms : ta b le : Total New Passenger Gars Registered Jan. 1, to May 1. 1923 1922 Total New Commercial Gars Registered Jan. 1, to May 1, 1923 1922 Arizona .......... California ....... Idaho ............ Oregon .......... Utah .............. 2,816 71,463 2,336 10,925 2,700 903 38,078 921 3,801 199 7,103 158 428 285 54 4,402 114 253 Total ........... 90,240 43,703 8,173 4,823 *Not available. That there has been an actual increase in the number of automobiles in operation, as well as in the sales of new cars, is shown by the figures of total registrations which include motor vehi cles purchased in previous years and registered again during the current year. The figures fol low : January 1 to June 1. 1923 1922 Arizona .................... California ................ Idaho ......................... Oregon .................... U t a h ........................... W ashington ........... 40,108 901,274 49,070 130,868 49,714 182,443 Total ...................... 1,353,477 31,735 699,908 42,865 106,380 35,997 141,806 1,058,691 Percentage Increase 1923 over 1922 26.3 28.7 14.4 23.0 38.1 28.6 27.8 National production of passenger cars and trucks during April, 1923, exceeded the previ ous record month of March, 1923, and was ap proximately 75 per cent greater than produc tion during April, 1922. The following produc tion figures collected from manufacturers rep resenting over 90 per cent of the national out put have been compiled by the Federal Reserve B a n k of Chicago. P„c«0ti»«re.». Production Apr., 1923 Passenger C ars___ 343,793 Trucks ....................... 36,786 Total .................... 380,579 Apr., 1922 Apr.. 1923, over Apr., 1922 196,788 21,862 68.2 74.7 218,650 74.0 Preliminary figures for May, 1923, show an output of nearly 400,000 passenger cars and trucks. Accepting this figure as approximately correct, national production during the first five months of 1923 has totaled 1,655,501 vehi cles compared with 856,625 vehicles manufac tured during the same period in 1922. Per Cent Increase May Number of Number of Men on Payroll* 1923, over Firms May 31,1923 May 31,1922 May, 1922 Los A n g e le s... P o r tla n d .......... San Francisco. Seattle .............. . 16 . 8 . 10 , 6 31,616 9,112 8,130 2,653 25,501 7,792 7,244 2,209 23.9 16.9 12.2 20.0 T o t a l ............. . 40 51,511 42,746 20.5 *These figures do not represent the total number o f men engaged in m anufacturing activities in these cities, but only the payroll figures o f a selected number of firms. During the past five months wages in most of the principal industries of this district have advanced. Present wages of workers employed in the agricultural, lumbering, mining, and metal trades industries are from 5 to 15 per cent above those paid one year ago. The cost of living, as reported by the National Indus trial Conference Board, increased during the same period by 3.5 per cent. FEDERAL RESERVE A G E N T A T S A N FRA NC ISCO 93 Savings Accounts Building Activity The total amount in all savings accounts as reported by 74 banks in seven principal cities increased 2.0 per cent between April 30th and May 31st, or from $890,921,000 to $909,004,000. The latter figure is the largest total reached in the four years during which records have been kept by this bank. This is the eleventh con secutive month during which there has been an increase in total savings deposits. Of the 74 reporting banks, 53, located in all sections Building activity continues at record levels. Although the spring peak in number and value of building permits granted in 20 cities of the district appears to have been reached in March, the recession since that month has been small. The value of permits granted during May was 10.8 per cent greater than in April, and only slightly below the record figures of March. Comparison of May, 1923, figures with those for April, 1923, and May, 1922, follows: Percentage Increase or Decrease (—) in the Number and Value of Building Permits May, 1923, compared with May. 1922 April 1923 MILLIONS OF DOLLARS 1000 TOTAL 500 400 Number of Permits Issu ed........... 11.3 Value of Permits Issued................ 38.9 DS A N G E L .9 10.8 Segregated according to cities, the May, 1923, building returns show an increase com- CO 300 — Z S 40 200 \ 36 100 sV / 32 OAKLAND 28 24 / A J A A / \ V V a¥0 U N T <IF PERI* IT S IN 20 \J V M ILLJONi OF DO LLARS 16 12 8 % % % V M B ER 0 F PERM T S IN THO JSA NDS fm ------ ^ t» » ' ' nu / ... . "/ 11 1 1— L. -J___L I -J__1__L. -J__ 1__ L- __ 1—L. i Savings Accounts in Banks in Seven Principal Cities of the Twelfth Federal Reserve District. 1922-1923 of the district, participated in the increase. A comparison of the amount of savings deposits in reporting banks on May 31, 1923, with the amount held on the same date in previous years shows an increase of 18.7 per cent over 1922, 24.8 per cent over 1921, 34.9 per cent over 1920, and 60.0 per cent over 1919. Detailed changes in the amount of savings deposits since one month and one year ago as reported by 74 banks in seven cities follow : Per Cent Increase or Decrease (—) Number of May 31,1923, compared Reporting with Banks May 31,1922 April 30,192- Los A n g eles............. . . .. Oakland .................... P o r tla n d .................... Salt Lake C ity......... San Francisco.......... Seattle ....................... , . Spokane .................... Total .................... . . . . 13 16 16 30.1 16.0 17.2 7.0 12.3 21.9 2.6 1.1 .6 .8 1.1 6 10.8 — .5 74 18.7 2.0 6 9 8 3.5 19 2 2 i i .i i i * i i 1923 Building Permits Issued in 20 Principal Cities, Twelfth Federal Reserve District. 1922-1923 (B ) B u ild in g P e r m its — May, 1923 No. Value 388 192 103 192 301 4,024 813 76 297 59 1,404 23 347 195 382 786 78 990 480 147 377 District . . . . 12,541 $39,269,740 11,266 Fresno ........... Long B e a c h ... L os A n g e le s. . Oakland ......... Pasadena ____ Phoenix ......... P o r tla n d ......... Reno ............... Sacramento . Salt Lake City San Diego . . . San Francisco. San Jose ........ Spokane ......... Stockton ........ Tacom a .......... 247 82 146 478 5,184 935 78 272 62 1,322 17 297 179 432 948 132 933 288 121 $ May, 1922 Value No. 816,510 164,000 241,583 1,740,817 18,926,881 2,373,020 227,000 896,373 133,287 2,594,620 87,996 703,740 1,516,295 765,865 4,928,986 337,360 1,867,280 277,155 342,871 328,101 Berkeley ........ $ 652,400 61,705 993,500 1,502,551 9,327,504 2,243,745 139,660 851,924 119,810 2,916,755 69,190 507,210 538,105 628,883 4,377,066 166,640 1,643,030 395,817 357,810 777,933 $28,271,238 M O N T H L Y R E V IE W OF B U SIN E S S C O N D IT IO N S 94 pared with May, 1922, in the number of per mits granted in 10 of the 20 cities and in the value of construction involved in 15 of the 20 cities. (See detailed figures in table “ B.” ) The cost of building was relatively unchanged during the month. In the year period May, 1922, to May, 1923, the United States Department of Labor’s index of building material prices has advanced 26.2 per cent. This rise is reflected, of course, in the value of building permits granted this year as compared with the value of those granted a year ago. Inasmuch as the value of construction authorized in this dis trict during May, 1923, was 38.9 per cent greater than in May, 1922, however, it appears probable that there has been a substantial in crease in the physical volume of construction involved. Evidence supporting this conclusion is found in the reported increase of 11.3 per cent in the number of permits issued during May, 1923, compared with May, 1922. have increased considerably less than 20 per cent during the year, indicates a substantial in crease in the physical volume of business trans acted in 1923 compared with 1922. Considered geographically, bank debits dur ing May, 1923, compared with May, 1922, in creased in 14 of the 20 reporting cities. Com pared with April, 1923, they decreased in all except Phoenix and San Diego. Business Failures The number of business failures reported in this district during May reacted from the low level of the previous month and was approxi mately the same as in March and January, when slightly over 200 bankruptcies were re ported. Liabilities of reported failures during , The volume of business transacted in this district during the four weeks ending May 29, 1923, as measured by debits to individual ac counts in banks of 21 principal clearing house centers, was 20.8 per cent greater than in the corresponding weeks of May, 1922, and 6.6 per cent less than in the four weeks ending May 2, 1923, the latter decline being largely seasonal. Bank debits for May exhibit approximately the same percentage of increase (20 per cent) over MILLIONS OF OOLLARS 2800 k [\ 2600 \ 1 / t / / / \ 220 0 2000 1800 K 1 9 2 2 ^ - . / / ✓ ' /N V / / V « 1 « t / V \\ 1•n % t \ 1 \ 1 \1 "" » i " ■ " V ___________ Debits to Individual Accounts in 20 Principal Cities, Twelfth Federal Reserve District. 1922-1923 last year’s figures, as have debits during the preceding months of 1923, compared with the corresponding months in 1922. This, in con junction with the fact that prices at wholesale V \/\ V V™ 1_. J rA I L U R E s A / ' A \ / ' . 1/ \/ * %/ V' 200 150 V ,1. ..I _.! . 1 1 100 TV 1L I T I E S 1.. »... 1. .1 ,i 50 l . _i. _.i -,i 1922 I .1. ,! ,L_ I__1... 1923 Business Failures, Twelfth Federal Reserve District. 1922-1923 May, 1923, at $1,999,056, were considerably less than for some time past, however, it being necessary to go back to January, 1922, to find a smaller figure. Compared with April, 1923, the number of business failures during May, 1923, was greater by 38.9 per cent, but the Four weeks ending May 29.1923 y \ 250 NO . O F (C) Bank Debits*— 1923^ 2400 ,\ »' y Bank Debits NO. OF FAILURES L IA B ILIT IE S IN M ILLIO N S 10 Berkeley ........................................ $ Boise ................................................ Fresno ............................................. L on g Beach.................................... L os A n g ele s................................... Oakland .......................................... Ogden ............................................. Pasadena ....................................... P h o e n ix ........................................... P o r t la n d .......................................... Reno ................................................ Sacramento .................................. Salt Lake C ity ............................. San D iego .................................... San Francisco............................... San Jose ........................................ Seattle ............................................. Spokane ......................................... Stockton ........................................ Tacom a ........................................... Yakim a ........................................... 14,339 10,777 38,640 52,949 625,922 105,914 25,856 30,071 16,799 133,324 8,670 41,290 55,391 40,784 703,928 18,260 149,082 42,076 20,720 34,101 8,349 Total ............................................$2,177,242 *000 Omitted. Four weeks ending May 31.1922 $ 18,688 11,119 35,667 26,744 463,754 75,652 19,299 23,192 18,460 112,617 8,884 51,165 49,224 34,627 613,065 16,233 122,798 42,710 18,603 31,304 8,961 $1,802,766 95 FEDERAL RESERVE A G E N T A T S A N FRANC ISCO amount of liabilities involved was less by 21.2 per cent. The average liabilities of business failures during May, 1923, were $9,657, com pared with $17,041 in April, 1923, and $12,718 in May, 1922. R. G. Dun & Company’s comparative figures of the number and liabilities of business fail ures in the states of this district during May, 1923, and April, 1923, follow : No. Arizona ............... 2 California ......... 109 7 Idaho ................... 3 Nevada ................ 32 O r e g o n ................ 10 Utah .................... 44 W ashington . . . . D is t r i c t ........... 207 May, 1923 Liabilities $ 45,500 742,669 40,137 16,074 272,003 56,089 826,584 $1,999,056 April. 1923 No. Liabilities 17 13 35 $1,015,054 180,293 3,596 130,789 221,974 987,501 149 $2,539,207 73 10 1 weeks have fluctuated with little apparent trend, a considerable decline in time deposits the first week in May having been offset by a rise in demand deposits. Total discounts of the Federal Reserve Bank of San Francisco, after increasing from $33,000,000 on January 10th to $65,000,000 on April 25th, increased slightly during May and then declined to $61,000,00 on June 13th. The re duction in its investment holdings of bankers’ acceptances and United States Government securities, which began in November, 1922, has continued, the reduction during the first two weeks of June ($12,000,000) having been espe cially marked. These investments totaled $44,000,000 on June 13th, compared with $80,000,000 on January 3, 1923. M I L L I O N S OF D O L L A R S Banking and Credit Situation Total loans of 66 reporting member banks in the principal cities of the district increased $9,000,000 during the four weeks ended June 6th, a smaller increase than in any preceding four-week period of the present year. It com pares with an increase of $20,000,000 during the four weeks ended May 9th, and of $25,000,000 MILLIONS OF DOLLARS 100 5 0 B IL L S P A Y A B L E A M D R E D lilC O U N T S 1 9 2 2 1 9 2 3 Total Deposits, Loans and Discounts, Investments, and Bills Payable and Rediscounts of Reporting Member Banks Total Reserves, Federal Reserve Note Circnlation, Bills Discounted, and Investments, Federal Reserve Bank of San Francisco during the four weeks ended April 11th. In vestments of these banks, which reached the highest point of the year on May 16th at $373,000,000, declined during subsequent weeks, and on June 6th were $363,000,000. A s a result of these changes the total volume of credit ex tended by the reporting member banks, as measured by total loans and investments, in creased only $4,000,000 during the period under review, compared with an increase of $18,000,000 during the preceding four weeks, and an increase of $35,000,000 during the four weeks ended April 11th. Total deposits in recent The tendency of interest rates to seek slightly lower levels, which became noticeable the latter part of April, continued throughout May and the first two weeks of June. The rate on time money at New York has fallen below 5 per cent, and some sales of commercial paper in that market have been reported at 4j^ per cent. These rates are approximately one-half of 1 per cent below those of the middle of April, the decline being probably no greater than, if as large as, is customary at this season of the year. The average rate charged by San Fran cisco banks on prime paper of customers was S l/ 2 per cent during May, compared with 5 y 2 to 6 per cent during April. Rates on acceptances were unchanged dur ing May at 4 % per cent. Reports received by this bank from 35 of the principal accepting banks of this district show the following per M O N T H L Y R E V IE W OF B U S IN E SS C O N D IT IO N S 96 centage changes in the amount of bills pur chased and accepted during May, 1923, com pared with April, 1923, and May, 1922: May, 1923, compared with April, 1923 May, 1922 Am ount of Bills A c c e p te d ..............— 42.8 Am ount of Bills Bought ................ — 4.3 Amount of Bills Held at Close of M o n t h ................................................. + 2 5 .5 — 3.0 — 23.3 — 14.6 The principal commodities upon which ac ceptances during May, 1923, were based were sugar, coffee, raisins, and wheat. On June 11, 1923, the Treasury Department announced an offering of Treasury Certificates, designated as Series TD2-1923, dated June 15, 1923, and maturing December 15, 1923. The notes bear interest at the rate of 4 per cent per annum, which is a reduction of one-quarter per cent from the rate borne by the last issue of six months’ Treasury Certificates issued in March, 1923. The offering was for $150,000,000 or thereabouts, and was primarily to provide funds with which to redeem Treasury Certifi cates amounting to approximately $200,000,000 which matured on June 15th. Subscription books were closed on June 13, 1923. Total subscriptions received amounted to $342,462,800, of which $304,118,800 were cash subscriptions and $38,344,000 exchanges of Treasury Certificates maturing June 15, 1923. Exchange subscriptions were allotted in full, and allotments on cash subscriptions amounted to $151,489,500, making total allotments for the issue $189,833,500. In this district total sub scriptions amounted to $26,314,500, of which $12,918,000 were allotted. Exchanges of Treas ury Certificates maturing June 15, 1923, in cluded in the total of subscriptions allotted in this district amounted to $593,500. PRINCIPAL RESOURCE AND LIABILITY ITEMS OF REPORTING M EM BER B AN K S IN RESERVE CITIES IN TW E LFTH FEDERAL RESERVE D ISTRICT June 6.1923 Number of Reporting Banks ............................................ . 66* Loans and Discounts (including rediscounts)........................................ $ 999,912,000 Investments ............................................................................................................. 362,709,000 Cash in Vault and with Federal Reserve B an k...................................... 122,060,000 Total D eposits......................................................................................................... 1,314,502,000 Bills Payable and Rediscounts with Federal Reserve B an k........... 43,056,000 June 7.1922 M ay 9. 1923 66* 68* $ 991,029,000 367,538,000 116,426,000 1,312,789,000 43,428,000 $ 853,560,000 324,471,000 98,971,000 1,168,061,000 7,060,000 ^M ergers have reduced the number o f reporting banks, but comparisons o f resource and liability items have not been affected. CO M P A R A TIV E ST A T E M E N T OF CONDITION OF F E D E R A L R ESER VE B A N K OF S A N FRANCISCO A T CLOSE OF BUSINESS, JUNE 13, 1923 RESOURCES Jane 13.1923 M a y 16.1923 June 14. 1922 Total R eserves......................................................................................................... $261,598,000 Bills D iscounted..................................................................................................... 60,629,000 Bills Bought in Open M a rk et.......................................................................... 24,962,000 19,210,000 United States Government Securities........................................................ $246,869,000 66,246,000 31,062,000 27,596,000 $255,008,000 42,024,000 16,764,000 60,049,000 Total Earning A sse ts............................................................................................$104,801,000 A ll Other Resources*.......................................................................................... 56,579,000 $124,904,000 55,408,000 $118,837,000 49,208,000 T otal Resources..................................................................................................$422,978,000 $427,181,000 $423,053,000 L IA B IL IT IE S Capital and Surplus..............................................................................................$ 23,077,000 Total D eposits......................................................................................................... 154,047,000 Federal Reserve Notes in Actual Circulation........................................ 202,441,000 All Other Liabilitiest.......................................................................................... 43,413,000 T otal Liabilities..................................................................................................$422,978,000 ♦Includes “ Uncollected Item s” ........................................................................ flncludes “ Deferred Liability Item s” ........................................................ 43,363,000 41,582,000 $ 23,066,000 157,493,000 205,266,000 41,356,000 $ 22,562,000 142,591,000 217,233,000 40,667,000 $427,181,000 $423,053,000 43,124,000 39,724,000 42,357,000 35,417,000 Those desiring this review sent them regularly will receive it without charge upon application.
@FedFRASER