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MONTHLY REVIEW
OF
BUSINESS CONDITIONS
JOHN PERRIN, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco
Vol. VII
San Francisco, California, March 16, 1923
Summary of National Conditions
Continued active business is indicated by the
maintenance of a high rate of industrial pro
duction, increases in freight traffic, increases in
employment, and a large volume of trade at
retail and wholesale.
Production. The Federal Reserve Board's
index of production in basic industries for Feb
ruary was at the same high level as in January.
The index number for these industries is now
approximately equal to the highest point
reached in the past. Since the low point in
July, 1921, there has been an increase of 61 per
cent. The volume of new building projected
in February was exceptionally large, for the
season, particularly in the western districts.
Railroad freight shipments have been increas
ing and the car shortage, which was somewhat
relieved in December and January, has become
more marked in recent weeks.
A continued increase in industrial employ
ment has been accompanied by further ad
vances in wage rates in a number of industries.
Many New England woolen mills workers
have received a wage increase of 12% per cent,
effective April 30th. A shortage of women
workers has been reported in the textile, rub
ber, and garment industries, and there is a
shortage of unskilled labor in many industrial
centers.
Trade. Wholesale and retail distribution of
goods continued at a high level during Febru
ary. Sales of both wholesale and retail con
cerns reporting to the Federal Reserve Banks
were well above those of a year ago, but the
increase was relatively more pronounced in
wholesale trade. Mail order and chain store
business was almost as large in February as in
January despite the shorter month, and sales
of 5 and 10-cent stores were actually larger
than in January.
Wholesale prices. The Bureau of Labor
Statistics’ index of wholesale prices advanced
slightly during February. Prices of metals,
M ILLIONS
PER
No. 3
OF D O LL A RS
B I L L I O N S OF D OL LA RS
160
140
120
100
80
60
40
20
0 1919
1920 1921
1922 1923
Index of Production in Basic
Industries
Combination of 22 individual series
corrected for seasonal variation
(1919 average = 100 per cent)
Prices
Bank Credit
Bank Credit
Index numbers o f wholesale prices.
United States Bureau o f 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 of »hi«
review, will be mailed prepaid to any address on our mailing list upon receipt of one dollar to cover actual costs.
34
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
building materials, and clothing increased,
while prices of fuels and farm products de
clined. Building materials and metals, during
the past year, have advanced more than any
other groups of commodities, and are now
about 25 per cent higher than in March, 1922.
Bank credit. Recent increases in industrial
and commercial activity have been reflected in
a larger volume of loans by member banks for
commercial purposes, especially in the New
York, Chicago, and San Francisco districts.
Loans of this character by reporting member
banks are now approximately $500,000,000
larger than at the end of December, 1922. This
increase has been accompanied by a reduction
in investment holdings, so that there has been
only a moderate net increase in total loans and
investments.
The larger demand for funds has not led to
any increase during the past month in the total
volume of credit extended by the reserve
banks. Total earning assets and loans to mem
ber banks on March 21st were approximately
the same as four weeks earlier. Borrowings by
member banks in the interior increased, par
ticularly in the Chicago district, but borrow
ings by member banks in the New York dis
trict decreased. Since the end of February
there has been a small decline in the volume of
Federal Reserve note circulation, which is now
at approximately the same level as six months
ago. Other forms of currency in circulation,
however, have recently increased.
The market rates on commercial paper ad
vanced further to a range of 5 to 5% per cent,
and the rate on bankers’ acceptances remained
steady at about 4 per cent. There has been a
slight increase in the yield of short term treas
ury certificates as well as of government and
other high grade bonds.
Summary of District Conditions
Activity in production and trade which char
acterized the first month of the year continued
during the short month of February, and in
some instances rose to record proportions. De
mand for the principal raw materials produced
in the district (excepting agricultural prod
ucts) continued equal to or in excess of the
available supply, prices of these commodities
tending toward higher levels. Distribution of
goods, measured by bank debits and sales at
retail and wholesale, proceeded at a rate equal
to that of any previous period of which this
bank has record. Employment of bank credit
increased moderately.
Although the lumber mills of the district
operated at or near maximum capacity during
February, 1923, both orders received and ship
ments were greater in volume than was produc
tion. Present mill stocks of lumber, particularly
in Oregon and Washington, are reported to be
small and prices tending to advance. A tem
porary shortage of logs, with a rapid increase
in their price, occurred during the month. Min
eral production in the district, particularly
metals of industrial importance, is increasing
rapidly. During January, the latest month for
which authoritative figures are available, more
copper was produced than during any month
in the past two years. Large increases in the
production of lead and zinc have also been re
ported. Another production record was estab
lished in the oil fields of California during Feb
ruary, when average daily production of petro
leum totaled 586,670 barrels, raising storage
stocks there on March 1, 1923, to a new high
record, 65,000,000 barrels. Building activity has
not declined during the winter months, permits
issued during February, 1923, having exceeded
the number issued during February, 1922, by
28.5 per cent, and their value by 52.4 per cent.
Increasing distributive activity has accom
panied expanding production. Trade at retail
during February, 1923, was greater in value
than in any February since the year 1919, when
this bank first began assembling sales figures.
In the wholesale trade sales in all of the 10
reporting lines of business were greater than
in February, 1922, the amount of the increase
in each of eight lines being over 25 per cent.
Seasonal declines in sales during February
compared with January were smaller than
usual. The volume of orders already placed
with wholesale dealers for goods to be deliv
ered during the spring and summer is reported
to be considerably greater than one year ago.
General trade activity, as reflected by charges
to bank accounts in 20 cities, was 18.7 per cent
greater in February, 1923, than in February,
1922. This is the largest increase reported since
35
FEDERAL RESERVE AGENT AT SAN FRANCISCO
April, 1922, since when each monthly figure
has exceeded that of the corresponding month
a year ago. The record of business failures,
omitting figures for one large failure in the
State of Utah, shows a normal seasonal decline
in February compared with January.
Credit demands upon member banks and
upon the Reserve Bank have, to a limited ex
tent only, reflected the increasing volume of
production and trade. Commercial loans of 66
reporting member banks in the larger cities of
the district rose from $743,000,000 on February
7th to $763,000,000 on March 7th, an increase
of $20,000,000. During the same period their
borrowings from the Federal Reserve Bank
rose from $19,500,000 to $27,800,000, an in
crease of $8,000,000. Country bank borrowings
from the Reserve Bank continued unchanged
at $18,000,000. Federal Reserve Note circula
tion, at $202,383,000 on March 14, 1923, was at
the lowest point since the 1920 peak. Interest
rates to customers of banks in this district have
remained steady during the month. The dis
count rate of this bank was advanced from 4
to 4y2 per cent on March 6, 1923.
Prices for lumber, the principal industrial
metals, and for some agricultural products of
the district, notably cotton, wool, and sugar,
moved upward during the month. Numerous
price declines were also reported, and the gen
eral level of prices of the products of the dis
trict was approximately the same at the close
of the month as at its beginning.
Stocks of wheat and barley held on the farms
of this district on March 1st were small, aggre
gating not more than 10 per cent of the 1922
crops of these grains. Reports received by this
bank indicate that stocks of canned fruits, with
the exception of the lower grade packs of some
varieties, and of dried fruits, with the excep
tion of raisins, are moderate in amount.
Weather conditions thus far this year have
been normal, growing crops are in good con
dition, and livestock have wintered well.
Crop Conditions
Fall sown grain crops of the Pacific North
west continued to improve with the favorable
weather of February, and will enter the spring
growing season in good condition. In Califor
nia during the past month the growth of grain
crops has been retarded by cold weather, in
sufficient rainfall, and drying winds.
Sales of 1922 crop wheat were comparatively
small in volume during February, both in for
eign and domestic markets. Exports of wheat
from Portland and Puget Sound ports were
unusually light, amounting to only 516,491
bushels compared with 1,452,224 bushels ex
ported during February, 1922, and 1,436,828
bushels exported during February, 1921. The
movement for the season to date continues far
below the record exports of the 1921-1922
season, and well below the small shipments of
the 1920-1921 season.
W H E A T EXPORTS
July 1st to February 28th inclusive
1922-1923
1921-1922
1920-1921
(bushels)
P ortland.............12,552,298
Puget Sound . . . 3,143,033
Total . . . . . . . . 15,695,331
(bushels)
(bushels)
27,266,100
6,496,612
33,762,712
14,873,887
4,348,589
19,222,476
The light volume of export sales of wheat
during the current season has been offset to
some extent by increased activity in the domes
tic market, and the proportion of the total 1922
crop now remaining in the hands of farmers
of this district is but little larger than it was
a year ago. United States Department of Agri
culture estimates of the stocks of wheat held
on farms in the principal grain producing states
of this district, on March 1st of the past three
years, are given in the following table:
STOCKS OF W H E A T ON FARM S, M A R C H 1st
(thousands o f bushels)
Per Cent
Per Cent
of 1922
of 1921
Crop
1922 Crop
1923
California ..
918
Idaho ..........
3,641
Oregon ___
1,974
Washington.
3,569
District ..
10,102
United States 153,134
1921
Per Cent
of 1920
Crop
6
668 5
1,799 18
15
4,312 16
6,150 25
10
2,790 11
2,691 11.9
11
4,660 8
5,416 13
10.2 12,430 9.8
16,056 15.2
17.9 134,253 16.5 217,037 26.1
Growers of the district have marketed their
1922 crops of barley more rapidly than they did
the crops grown during the previous two years,
judging from United States Department of
Agriculture estimates of the percentage of the
total crop held on farms, in the four principal
producing states of the district, on March 1st of
the past three seasons:
STOCKS OF B A R L E Y O N FAR M S, M A R C H 1st
(thousands o f bushels)
1923
California ..
Idaho ..........
Oregon ----Washington.
District ___
United States
Per Cent
of 1922
Crop
2,580
7
491 14
346 16
236 13
3,653
8
43,592 23.4
Per Cent
of 1921
1922 Crop
2,673
9
668 24
493 22
618 21
4,452 11
42,294 27.3
1921
Per Cent
of 1920
Crop
5,462
966
749
1,042
8,219
65,229
19
30
31
36
21
34.5
Storage holdings of apples in this district on
March 1st were 167 per cent greater than they
were on that date last year, as shown by the
following table :
1922-1923 1921-1922
(cars)
Total commercial crop of apples.......... 44,800
Shipments July 1st to February 28th.. 36,922
Remaining in storage in the district...
7,878
(care)
51,123
48,180
2,943
36
M O N TH LY REVIEW OF BUSINESS CONDITIONS
Shipments of apples from the district during
February were less than during January by
1,735 carloads, but were approximately 21 per
cent greater than shipments during February,
1922. Prices paid growers for apples declined
slightly during February, contrary to the usual
trend of prices at this season of the year.
Prices on March 1, 1923, were approximately
43 per cent below those of a year ago.
Further improvement in the condition of the
Navel orange crop in California has been re
ported, and the February 1st estimate of the
total yield (8,864,000 boxes) has been increased
approximately 4j4 per cent. If present expec
tations are realized the 1922-1923 crop will
total 9,260,000 boxes. Early season estimates
of the 1922-1923 lemon crop in California were
reduced again during February. Total prob
able yield is now placed at 4,166,000 boxes.
Advancing prices to growers for oranges stimu
lated marketing of that fruit during the month.
A decline in prices paid growers for lemons,
and comparatively light picking of the fruit due
to cold weather, combined to reduce lemon
shipments. Total shipments of oranges and
lemons up to March 5th of the past two seasons
have been as follow s:
Nov. 1st to March 5th
1922-1923
1921-1922
(cars)
Oranges .............................................. 14,405
Lemons ............................................... 2,113
(cars)
11,506
2,324
Canned and Dried Fruits
Commercial estimates indicate that the
amount of the record-breaking 1922 pack of
canned fruits now remaining unsold in the
hands of canners in this district is but little
larger, in proportion to the total pack, than the
stocks held last year at this time. The greater
part of the present carryover is made up of the
lower grade packs of the various fruits, par
ticularly peaches. Unusually large amounts of
the canning fruits grown during the 1922
season were small in size, and of poor quality.
Export movement of canned fruits during
the 1922-1923 season has been comparatively
light. It is estimated by important factors in
the trade that foreign buyers have taken only
about 4 per cent of the 1922 pack of California
fruits, as compared with purchases approxi
mating 8 per cent of the total pack during the
previous season. Packers report that activity
in the domestic market has been well main
tained during the season, the better grades of
fruit having been in greatest demand.
Prices for the higher grades of canned fruits
have advanced slightly as the season pro
gressed, but those for the lower grades have
not been generally maintained, many canners
finding it necessary to offer price concessions
in order to move comparatively large holdings
of the latter class of fruit. The market for all
grades and varieties of canned fruits is re
ported to have strengthened during February.
Dealers report that delays in transportation
of dried fruits from California to Eastern mar
kets, during the autumn of 1922, prevented a
normal volume of sales of these fruits during
the year-end holiday season, and resulted in a
large carryover in hands of distributors there
at the beginning of the present year. Buying
by the latter for spring needs has, therefore,
been lighter than usual. Notwithstanding this
fact, Pacific Coast holdings of all dried fruits
except raisins are not large. Present stocks of
prunes in California, amounting to approxi
mately 40,000,000 pounds, are reported to be 30
per cent less than they were last year at this
time. Reported holdings of prunes in Oregon
and Washington are also light. Unsold hold
ings of dried apricots in California amount to
only one-fifth of the total 1922 yield of 20,000,000 pounds.
During 1922 California produced approxi
mately 230,000 tons of raisins, a record crop.
It entered a market well supplied with 1921
crop raisins sold at the end of that crop year
in an endeavor to reduce an unwieldly carry
over. Stocks available throughout the present
season have, therefore, been unusually large,
and demand for raisins light. Commercial fac
tors estimate that approximately 95,000 tons of
raisins remained unsold in California at the be
ginning of March, 1923, compared with unsold
stocks of 65,000 tons held last year at this time.
Present unsold stocks amount to approxi
mately 40 per cent of the total 1922 crop. They
are reported to consist largely of Thompson
Seedless and Muscat raisins, holdings of the
former amounting to 60 per cent and of the
latter to 40 per cent of the total.
Foreign demand for dried apricots and
prunes has been light during the past year, but
exports of raisins during 1922 were more than
double those of 1921. The following table
shows the exports of dried apricots, prunes, and
raisins from the United States (chiefly from
the Pacific Coast) for the past two years:
EXPORTS OF DRIED FRUITS (U NITED STATES)
1922
(pounds)
Apricots ............................... 9,858,450
Prunes .................................. 94,216,105
Raisins ................................. 93,891,071
1921
(pounds)
21,575,149
117,933,740
32,968,664
Prices of prunes and dried apricots have ad
vanced slightly during the marketing season.
The price of raisins, although maintained un
changed by the growers’ association which
controls the bulk of the crop, has been reduced
from one to two cents per pound by independ-
37
FEDERAL RESERVE AGENT AT SAN FRANCISCO
ent packers. Comparative price quotations for
dried apricots, prunes, and raisins are given in
the following table:
DR IED FRU IT PRICES
( F. O. B. California)
(P ackers’ quotations— Cents per pound)
Opening
Price
1921-1922
Apricots (choice in 25-lb.
boxes) ..................................
18^4
Prunes (4G-50s basis price). 5^ -5 2 4
Raisins (Thompsons— bulk
in 25s) ..................................
14*4
Opening
Price
1922-1923
M ar. 10,
1923
22%
sy2-sy4
24
834-9
10
10
Livestock
Severe storms in the Intermountain states
and a protracted dry spell in California have
been unfavorable factors affecting the livestock
industry of the district during the past six
weeks. Cold weather and deep snows in Utah,
Nevada, and Southern Idaho have necessitated
considerable feeding and caused light losses
of sheep and cattle on some of the ranges of
those states. Unless unfavorable weather con
tinues, however, little permanent injury will be
done to herds and flocks, as prior to this time
the winter has been mild and feed plentiful.
THO U SA ND S
and in the later lambing areas, the large num
ber of ewes bred and the excellent condition of
the flocks indicate numbers of spring lambs
greatly in excess of those of 1922.
Receipts of all classes of livestock at the
eight principal markets of the district during
February were substantially larger than the
receipts of February, 1922, as shown by the
following table :
Cattle
February, 1923... 69,919
January, 1923... 89,640
February, 1922... 60,611
Calves
Hogs
Sheep
15,683
16,533
9,635
176,203
222,228
143,924
185,242
210,808
166,030
Prices for cattle and sheep at the principal
markets of this district tended toward lower
levels during February, the largest decline being
in the price of cattle. Prices of hogs at the same
markets tended to advance during the month.
Dairy and Poultry Products
The increase in cold storage holdings of but
ter reported during January, 1923, proved to
have been a temporary reversal of the down
ward trend customary at this season, which
was resumed during February. The net with
drawal of 261,217 pounds of butter from cold
storage during that month reduced total stocks
to 378,764 pounds on March 1st. Present hold
ings are 61 per cent greater than those of a
year ago, when, as a result of unusually heavy
withdrawals during February, but 242,043
pounds remained in cold storage on March 1st.
M IL L IO N S
OF P O U N D S
/
/
r
V
\
\
\
X
1922/
/
^ ^ 1923
i
Receipts of Livestock at Eight of the Principal Markets of the District
1S£2-1923. (Los Angeles, Ogden, Portland, Salt Lake City, San
Francisco, Seattle, Spokane and Tacoma included)
Lambing is now in progress in the Southern
sections of the district and in a few sheltered
shed-lambing sections of other states. In Cali
fornia it is approximately three-fourths com
pleted, with unusually small losses reported.
Excellent weather for lambing and satisfactory
feed conditions, in addition to keeping losses at
a minimum, have facilitated quick growth and
early maturity of spring lambs, some of which
have already reached California markets. In
Arizona conditions for lambing have also been
favorable, the increase has been large, and
losses have been light. Both in these sections,
1 - —-
*
✓
s
/
.
~
N
\
\
“ A .....................
\
\
---- (---------1--
Seasonal Movement of Holdings of Cold Storage Butter at Four
Principal Markets of the District, 1922-1923
Butter prices in the San Francisco market
moved irregularly during February.The whole
sale price of 93 score creamery butter declined
from 48^2 cents per pound on February 2nd to
45 cents per pound on February 7th, advanced
to 48 cents per pound on February 16th, and
declined steadily thereafter, the quotation on
March 15th being 43 cents per pound.
Holdings of cold storage eggs in the five
principal markets of this district increased
during February, the movement into storage
having been accelerated by rising production
and declining prices for the product. Storage
holdings of 1,352 cases of eggs on March 1,
38
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
1923, were nearly double those of February 1,
1923, but were practically the same as holdings
on March 1, 1922. In the San Francisco mar
ket, the wholesale price of extra grade eggs
declined from 28% cents per dozen on Febru
ary 16th to 24% cents per dozen on March 1st.
A price of 25 cents per dozen was quoted on
March 15th.
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:
March 1,
1923
Butter (pounds).. 378,764
Eggs (cases)..........
1,352
Feb. 1,
1923
Jan. 1,
1923
March 1,
1922
639,981
706
437,061
73,183
242,043
1,349
the end of February, as a result of actual de
clines or of seasonal advances of less than
usual extent, some commodities were quoted
at lower levels than one year ago. Included in
IN D E X N U M B E R S
260
220
ISO
1 40
Prices
Substantial advances in the prices of cotton,
wool, and sugar during recent months have
tended to obscure the movement of prices of
other agricultural products. In general they
have moved upward, but not rapidly, and at
100
O
Wholesale Prices and the Cost of Living, 1920-1923
United States Bureau o f Labor Index o f W holesale Prices (1 9 1 3 = 1 0 0 ).
National Industrial Conference Board Index o f the Cost o f Living (July 1 9 1 4 = 1 0 0 ).
(A) Commodity Prices—
Commodity
Twenty Basic Commodities (F. R. B. of N. Y .) 1913=100.
Wholesale Prices (U. S. Bureau of Labor*) 1913=100___
Cost of Living (National Industrial Conference Board)
July, 1914=100.................................................................................
Cattle (Native B eef).. .Weekly average price at Chicago..
Sheep ................................W eekly average price at Chicago..
Lambs ............................. Weekly average price at Chicago..
Hogs . . ............................. Weekly average price at Chicago..
Wheat ................... Chicago contract prices for May Wheat.
Barley ................... Shipping Barley f. o. b. San Francisco...
Rice ....................... California Fancy Japan at San Francisco
Cotton ................... Middling Uplands— Weekly range of spot
quotations at New Orleans.....................
W ool ..................... Average of 98 quotations at Boston.........
Flour ..................... First Grade Family Patent f. o. b. Pacific
Coast mills ....................................................
S u g a r .....................Beet granulated f. o. b. San Francisco...
A p p le s...................Extra Fancy Winesaps f. o. b. Pacific
N orthw est......................................................
Oranges ...............Navels, market pack, Los Angeles...........
Lemons ................Loose pack at Los Angeles..........................
Dried Apples___ Choice in 50-lb. boxes f. o. b. California..
Dried Apricots . .Choice in 25-lb. boxes f. o. b. California..
Prunes ..................Size 40/50 in 25-lb. boxes f. o. b. Calif...
Raisins .................Loose Muscatel in 25-lb. boxes f. o. b.
California ......................................................
Canned Apricots.Choice 2}4s f. o. b. California.....................
Canned Peaches..Cling Choice, 2%s f. o. b. California........
Canned Pears .. .Bartlett, Standard 2%s f. o. b. California.
Raw M i l k .............Pacific Coast— January average..................
Butter ...................93 score at San Francisco..............................
Eggs ..................... Extras— San Francisco..................................
Copper . . .............Electrolytic— New York Spot......................
Lead .....................New York Spot.................................................
Silver ....................New York Foreign ........................................
Z i n c .......................East St. Louis Spot..........................................
Petroleum ...........California 35° and above................................
Douglas Fir..........2x4, 16-ft. No. S1S1E f. o. b. Seattle.........
Douglas F ir ........ 12x12 Timbers f. o. b. Seattle......................
•Revised figures.
Unit
100 lbs.
100 lbs.
100 lbs.
100 lbs.
bu.
cental
cental
lb.
lb.
March 2.1923
<
One Month Ago
159.6
157.0
151.7
156
One Year Ago
132.0
141
157.5
158.1
157.7
$8.85
$8.80
$8.05
7.50
7.50
7.90
13.95
13.90
14.75
8.00
8.25
11.00
1.18 ^ -1 .1 9 ^ 1 .1 7 ^ -1 .1 8 ^ 1 .4 2 ^ -1 .4 6 ^
1.65-1.75
1.60-1.75
1.35-1.50
4.40
4.60
4.90
29.75-30.13tf 27.62-28.00tf 17.00-17.25tf
82.36tf
81.28tf
59.72tf
bbl.
lb.
7.79
9.10
7.81
6.90
8.13
5.40
box
box
box
lb.
lb.
lb.
1.40-1.50
2.50-3.00
3.00-3.25
.08^ -08^ 4
.22-.23
1.40-1.55
2.25-3.25
3.00-3.50
•08j4—.08^4
.23y2
. 1134-.12
2.50-2.65
2.50-4.50
3.00-3.50
.17-.17^
.26
.14^
.11
3.15
2.60
2.85
2.82
.48^
.34
.15
8.375tf
.6 4 ^
7.05-7.10tf
1.45
21.50
24.00
.15
3.00
2.60
3.00
2.43
.35
.2 7 ^
.12H
4.70tf
.63
4.55-4.60tf
2.45
13.50
14.00
lb.
doz.
doz.
doz.
100 lbs.
lb.
doz.
lb.
lb.
oz.
lb.
bbl.
M ft.
M ft.
.u x -.i w
.11
3.15
2.60
2.85
2.80
.45
.27^2
.167/8
8.50tf
.66
7.80-7.85tf
1.45
22.50
24.00
F in a n c ia l C o n d itio n s in t h e
T w e l f t h F e d e r a l R eser ve D istr ict
by
JOHN PERRIN, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco
San Francisco, California, March 16, 1923
SU RVEY of financial conditions in the
Twelfth Federal Reserve District based
upon reports of condition of all banks
(State and National) as of December 29, 1922,
is presented herewith, in comparison with a
similar survey made a year ago, on December
31, 1921. With few exceptions, credit condi
tions during the year have materially improved,
particularly in the Intermountain states of Ari
zona, Idaho, and Utah, and in eastern Oregon.
As in previous surveys, the ratio of total
loans and discounts to total deposits of all
banks, State and National, in a given area was
used in determining the financial condition of
that area. Where the total of loans and dis
counts was less than 80 per cent of total de
posits, financial conditions were characterized
as “ good” (colored blue on accompanying
maps) ; where the ratio was between 80 per
cent and 100 per cent, financial conditions were
characterized as “ fair” (colored yellow on
maps) ; and where the ratio was over 100 per
cent, and where in consequence many banks
were borrowing from the Federal Reserve
Bank or from their correspondents, financial
conditions were characterized as “poor” (col
ored green on maps).
This study relates primarily to conditions in
the agricultural regions of the district, as have
previous studies. The following summary,
which excludes figures for the cities of Berke
A
ley, Los Angeles, Oakland, Portland, Salt Lake
City, San Francisco, Seattle, and Spokane,
shows the continued improvement in condition
during the past two years:
PROPORTION OF T O T A L DEPOSITS OF BANKS IN
COLORED AR EAS TO T O T A L DEPOSITS OF
A L L C O U N T R Y BANKS
April 28,
1921
Dec. 31.
1921
June 30,
1922
Dec. 29,
1922
89.0%
“ Good” areas.. . 54.9%
80.3%
66.1%
“Fair”
areas.. . 34.8%
12.7%
27.2%
7.4%
“ Poor” areas.. . 10.3%
7.0%
6.7%
3.6%
Total deposits of all banks included in the
above summary—the so-called country banks—
were, on December 29, 1922, approximately 36
per cent of total bank deposits in the Twelfth
Federal Reserve District, and the ratio of their
total loans and discounts to their total deposits
was, on December 29, 1922, 70.7 per cent, com
pared with 75.5 per cent on December 31, 1921.
Deposits in the cities above mentioned
equaled 64 per cent of total bank deposits in
the district, and the ratio of their combined
loans to deposits was 64.9 per cent compared
with 67.6 per cent on December 31, 1921.
The above figures indicate that financial con
ditions generally are “ good” in all of the prin
cipal cities of the district, and in those agricul
tural areas in which approximately 90 per cent
of the banking resources of the agricultural
sections are to be found.
FINANCIAL CONDITIONS
in the
TWELFTH
FEDERAL RESERVE
DISTRICT
As of December 31,
1921
LEGEND
~| GOOD
□
□
R e d isc o u n t O p e r a t io n s
in t h e
T w e l f t h F e d e r a l R e s e r v e D is t r ic t
COMPARATIVE REDISCOUNT OPERATIONS, 1920-1923
Borrowings of City and Country Member Banks
(As of the end of each month)
NOTE:
City banks include all member banks in Berkeley, Los Angeles, Oakland, Portland, Salt Lake City,
San Francisco, Seattle, and Spokane. Country banks include all other member banks.
BORROWINGS FROM THE FEDERAL RESERVE BANK
AND WHOLESALE PRICES
Country Bank
Borrowings
Member Bank
Borrowings
United States
Bureau of Labor
Wholesale Price
index
(1913=100)
$21,978,000
$ 84,066,000
233
Aug. 23. 1921
Oct. 5.1920
May. 1920
$68,985,000
$174,699,000
247
All
City Bank
Borrowings
Date
January 27, 1920..................................................$ 62,088,000
r
Oct. 5, 1920
Subsequent Peak..............................................| $116,286,000
f
A u i. 8. 1922
Later Low Point..............................................{ $
February 27, 1 9 2 3 ..........................................
*Index number for January, 1923.
8)264j000
$ 29,174,000
Jan. 2.1923
Jan. 16.1923
Jan. 1922
$19,729,000
$ 35,576,000
138
$21,358,000
$ 50,532,000
156*
39
FEDERAL RESERVE AGENT AT SAN FRANCISCO
this list were sheep, lambs, hogs, wheat, wheat
flour, rice, and the majority of the fresh and
dried fruits now being marketed.
The average of 98 wool quotations on the
Boston market advanced from 81.28 cents per
pound on February 2nd to 82.36 cents per
pound on March 2nd, the latter average being
37.9 per cent higher than that of March 2, 1922.
Prices of standard grades of cotton advanced
more than two cents per pound during Feb
ruary, and at the close of the month were 74.5
per cent above prices a year ago. Sugar prices
have continued their upward movement, and
at the beginning of March were higher than at
any time since November, 1920. The price of
refined beet sugar on the San Francisco mar
ket, which was $6.90 per hundred pounds at
the end of January, advanced to $9.10 per hun
dred pounds at the close of February. A fur
ther advance of 30 cents per hundred pounds
was reported during the first two weeks of
March. Substantial advances in prices of bar
ley and beef cattle were noted during February.
Metal prices continued upward. Copper was
quoted at 17 cents per pound on March 16th,
the highest quotation since September, 1920,
and 2 cents per pound above the quotation six
weeks previous. Recent advances in the price
of lead and zinc have carried the quotations on
these metals to levels 80 per cent and 71 per cent,
respectively, above those of February, 1922.
Milling
Relative inactivity of the flour market during
the past month was reflected in the operations
of millers of the district. Although production
during February, 1923, increased as compared
with February, 1922, the increase was a small
one and according to reporting millers did not
result from a similar increase in the demand
for their product.
N o. o! Mills
Reporting
Feb., Jan.,
1923
1923
California ..
Idaho . . . . .
Oregon . . . .
Washington
10
2
15
16
District . . , . 4 3
10
3
17
18
48
-----Output—
r"‘ ",1
Feb., 1923
Jan., 1923
--------- >
Feb., 1922*
(barrels)
(barrels)
(barrels)
264,144
5,831
144,675
378,624
281,068
11,306
169,964
380,024
233,570
6,648
150,497
354,935
793,274
842,362
745,650
*64 Mills reporting.
Stocks of flour held at mills, as reported by
16 large companies, declined slightly from the
peak of the previous month, and at 510,642
barrels on March 1, 1923, were approximately
the same as on March 1st a year ago. The
amount of wheat in millers' bins on March 1st,
although reduced by 12.3 per cent during the
preceding month, was still 87.9 per cent greater
than one year ago.
Flour prices quoted by mills of the district
declined during February. On March 1, 1923,
they were approximately 4 per cent below the
price of March 1, 1922.
M IL L IO N S OF B U S H E L S
5
4
3
2
I
O
T H O U S A N D B A R R E LS
900
700
500
300
100
0
1922
1923
Monthly Flour Output, and Stocks of Wheat and Flour at End of Month,
of 16 Reporting Milling Companies
Lumber
Output of lumber mills of the district during
February was at the maximum permitted by
log supply and weather conditions. Mills in
four lumber associations operated at 95 per
cent capacity, and produced 13.2 per cent more
lumber than in February, 1922. Their produc
tion for the 28 days of February, 1923, was
slightly greater than production for the 31 days
of January, 1923. Figures showing the activity
of reporting mills follow (000 omitted) :
Production ..........
Shipments ........... .
O r d e r s ........ ............
Unfilled Orders...,.
Feb., 1923
Jan., 1923
Feb., 1922
(board feet)
(board feet)
(board feet)
419,321
574,138
598,805
626,895
4 1 4 ,9 8 5
3 7 0 ,2 0 5
4 7 5 ,5 1 0
3 7 9 ,1 3 4
6 1 0 ,9 7 6
3 8 2 ,5 5 8
5 7 2 ,7 7 0
3 4 9 ,7 2 4
Notwithstanding the increase in output, ship
ments during February exceeded production
by 36.9 per cent, and new orders received ex
ceeded production by 42.8 per cent. Both for
eign and domestic buyers are contributing to
the present active demand for lumber, which
was larger both in January and February of the
present year than in any month since January,
1920.
For the past three months shipments of
lumber from the mills of the district have ex
ceeded production, and stocks of all grades of
lumber are now reported to be at low levels.
In the Pacific Northwest mill stocks on March
1, 1923, were reported to be less than 50 per
cent of normal.
Logging activity in Oregon, Washington,
and Northern Idaho was greatly curtailed dur
40
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
ing February by severe storms in the moun
tains, and production was less than in January,
1923, or in February, 1922. During the latter
part of the month a shortage of logs developed
in some sections, several large saw mills in the
Puget Sound and Columbia-Willamette River
districts being forced to suspend or curtail
their operations. Prices for logs now prevailing
are reported to be as high or higher than at
any time in the history of the industry.
M IL L IO N S OF BOARD F E E T
duction in the United States, which has ex
ceeded 100,000,000 pounds in each month since
October, 1922, reached 112,341,097 pounds in
January, 1923, the latest month for which fig
ures are available. This is the largest output
of copper in any single month for the past two
years. Expanding production has been accom
panied by a large increase in sales, and it is
estimated that stocks of copper (refined and
blister) have been further reduced since the
January 1st estimate of the United States Geo
logical Survey, 629,000,000 pounds, was pub
lished. Estimated stocks of copper in the
United States on January 1st for the past four
years have been as follow s:
Refined
(pounds)
January
January
January
January
Lumber Production, Orders Received, and Shipments in Twelfth
Federal Reserve District as Reported by Four Lumber
Associations, 1922-1923
Statistical evidence of the increase in water
borne shipments of lumber during the past
year compared with 1921 and 1920, and of the
growing demand for Pacific Coast woods in
foreign countries, is contained in the following
table (000 omitted) :
P A C IFIC N O R TH W E ST LUM BER SHIPM EN TS
(By water)
1922
(board feet)
1921
1920
(board feet) (board feet)
California ........................ ■1,580,257
Atlantic Coast of U. S .. .. 665,844
590,921
Japan ................................
159,263
Australia ..........................
154,317
China ................................
66,320
Hawaiian Islands...........
South America— W est
62,407
C o a s t............................. ..
United Kingdom and
50,611
Europe .........................
16,808
South A fr ic a ...................
10,456
India .................................
9,182
C u b a ..................................
8,171
Mexico .............................
South America— East
7,338
C o a s t .............................
20,421
All O th e r * .......................
978,583 1,066,125
49,706
211,404
378,382
78,557
66,155
106,110
136,503
131,915
56,618
59,690
Destination
____
53,229
98,189
27,150
5,142
10,928
2,745
6,361
146,368
17,782
9,316
19,680
4,154
1,414
33,167
12,001
36,610
3,402,316 1,963,193 1,840,791
^Includes: Alaska, Central America, Egypt, New Zealand, Pan
ama, Philippine Islands, South Sea Islands, Fiji, and Straits
Settlements.
The increase in the production of and the
demand for copper during the early weeks of
the present year has been the outstanding fea
ture of the metal mining industry. Copper pro-
1,
1,
1,
1,
1920.
1921.
1922.
1923.
631,000,000
659,000,000
459,000,000
277,000,000
Blister and Material
in Process of
Refining
(pounds)
Total
(pounds)
273,000,000 904,000,000
465,000,000 1,124,000,000
283,000,000 742,000,000
352,000,000 629,000,000
The price of electrolytic copper delivered in
New York was 17.0 cents per pound on March
16, 1923, compared with 15.50 cents per pound
on February 16, 1923, and 13.0 cents per pound
on March 16, 1922.
Substantial increases, compared with De
cember, 1922, and January, 1922, in the output
of other important metals produced in the
country and in this district were reported in
January, 1923. The following table shows the
national production of copper, silver, and zinc
during these three months:
Copper (lbs.)
Jan *1923
Dec- 1922
Jan- 1922
(mine production) 112,341,097 103,003,306 25,848,284
Silver (oz.)
(commercial bars)
5,189,745
5,052,192 3,937,784
Zinc (tons)
(slab) ...................
46,317
42,84L
23,706
Figures for lead are not available.
Copper production at eight of the thirteen
principal mines in this district now producing
metal was 27,430,000 pounds in January, 1923,
compared with 25,949,000 pounds in December,
1922. In January, 1922, production of the three
mines then producing copper was 8,077,000
pounds. Silver mines of the district are now
operating at approximately 100 per cent of ca
pacity. Government purchases of silver from
domestic mines, at $1.00 per ounce, under the
Pittman Act, totaled approximately 150,750,000
ounces up to January 1, 1923, out of a total of
208,000,000 ounces to be purchased. Activity in
the gold mines of the district, especially in
California, is greater than at any time during
the past year. Dredging properties are increas
ing their output and many small quartz mines
are resuming or expanding operations.
41
FEDERAL RESERVE AGENT AT SAN FRANCISCO
Petroleum
Production of petroleum in California during
February, 1923, averaged 586,670 barrels per
day, a record figure, and 261,903 barrels per
day, or 80.6 per cent larger than it was in Feb
ruary, 1922. Increased activity in industry and
a seasonal increase in demand for petroleum
products were responsible for an increase in
the consumption of crude petroleum during
February, 1923, which, at 508,926 barrels per
day, exceeded the daily consumption during
January, 1923, by 24,837 barrels, or 4.8 per cent,
and consumption during February, 1922, by
202,634 barrels per day, or 66.1 per cent. A c
cumulation of stored stocks of petroleum con
tinued during the month, storage holdings on
M IL L IO N S
90 per cent, occurred in the Intermountain Dis
trict, where industrial recovery, although but
recently begun, has been proceeding at a rapid
rate. Increased sales to the lumbering, mining,
and manufacturing industries, recorded in the
following table, reflect the marked increase in
industrial activity which has taken place dur
ing the past year.
lared with January, 1922
Agriculture
Mining
California .............. — 1.0
Pacific Northwest. 56.6
Intermountain . . . . 244.9
Twelfth District...
7.3
1.7
14.9
103.7
18.8
Manufacturing
Total
Industrial
Sales
36.3
16.7
11.0
30.3
15.8
5.8
90.9
20.6
Compared with December, 1922, sales of
electric energy for industrial purposes during
January, 1923, declined by approximately 4.4
per cent. This decline was caused primarily by
a decrease in sales in one section of the district
where adverse weather conditions and other
purely local factors had reduced the industrial
demand for electric power.
The accompanying chart shows, by months
of 1922 and 1923, the total industrial sales (in
kilowatt hours) of 20 of the largest power com
panies in this district.
M ILLIONS OF KILO W ATT HOURS
450r
400
/V
192 2
350
C A L IF O R N IA
Production, Shipments, and Stored Stocks of Petroleum, and Refinery
Stored Stocks of Gasolene, 1922-1923
Figures for month« subsequent to August, 1922. furnished by American Petroleum
Institute. Figures for previous months partly estimated.
\\
/
/
M
300
, 1923
• <------
.... i
t
/
/
$
/
i
March 1, 1923, amounting to 64,812,395 barrels, 2 5 0
0*
compared with 62,635,588 barrels held a month
previous and 36,701,810 barrels on March 1,
1922. Forty-three new wells were completed 200
__ _ _
during February and 14 wells abandoned, a
1
1.
net increase of 29 producing wells during the
Total Industrial Sales (K. W. H.)
month.
Q rrr~
\
/
!
1
1
i
l
V
l
J
J
of 20 Power Companies in Twelfth
Federal Reserve District, 1922-1923
Electric Energy
Total industrial sales of electric energy were
20.6 per cent greater during January, 1923, than
during January, 1922, according to reports of
20 of the principal power companies in the dis
trict. This increase compares favorably with
the annual increases which have been reported
in each month since May, 1922, and which have
approximated 20 per cent during the past three
months. The largest increase, approximately
Figures showing the number of industrial
consumers and industrial sales of reporting
companies during January, 1923, and January,
1922, follow:
Number of
Industrial Consumers
Jan.,
Jan.,
1923
1922
Industrial Sales K.W . H.
Jan.,
Jan.,
1923
1922
California.................. 56,262
Pacific Northwest . . 11,115
Intermountain States 10,102
49,742
10,614
9,719
171,639,680
65,708,357
44,317,938
148,216,598
62,093,674
23,208,673
Twelfth District . . . .
70,075
281,665,975
233,518,945
77,479
42
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
Retail Trade
Wholesale Trade
Trade at retail in this district during Feb
ruary, 1923, appears to have been greater in
value and volume than in any previous Feb
ruary of which this bank has record. The dollar
value of sales of 33 department stores in six
cities was 20.9 per cent greater than in Feb
ruary, 1922 ; 7.4 per cent greater than in Feb
ruary, 1921; 15.8 per cent greater than in Feb
ruary, 1920; and 49.9 per cent greater than in
February, 1919. Combined sales of stores in
each of the six cities showed increases com
pared with February, 1922. Only four of the
thirty-three reporting stores did not participate
in the increase.
Sales at wholesale during February, 1923, as
reflected in reports of 193 firms in 10 lines of
business, averaged 25.6 per cent greater in
dollar value than during February, 1922. In
creases in individual lines of business ranged
from 7.4 per cent in drugs to 65.6 per cent in
automobile tires, every line of business and 166
of 193 reporting firms sharing in the gains. In
four lines the increase was over 40 per cent,
and in eight lines over 25 per cent. Compared
with January, 1923, the value of sales during
February, 1923, increased in five of the ten
lines of business. The percentage increase or
decrease (— ) in the value of sales of all re
porting firms in each line of business was as
M IL L IO N S OF D O LLA R S
fo llo w s :
Two Months
Ending Feb.
Feb. 1923
28,1923 corncompared with
pared with
Number Feb.,
Jan., sameperiod
of Firms 1922
1923 ^ in 1922
2 4 1———- —
22
Agricultural Implements 21
Automobile Supplies____21
Automobile Tires.............21
Drugs ................................ .10
Dry Goods.........................15
Furniture ......................... .16
Groceries .......................... .29
Hardware ..........................20
Shoes ................................. .13
Stationery..........................27
20
16
16
14
12
/'
1923 .
\ I9 Î2
-V
10
8
Net Sales of 31 Department Stores in Twelfth Federal Reserve District
(in M illions o f D ollars)
Reported increases in value of sales undoubt
edly indicate similar increases in the physical
volume of goods sold, as the average of retail
prices has increased but little, if at all, during
the past year. The number of individual sales
transactions during February, 1923, as reported
by 16 stores that keep such records, was 8.3
per cent greater than during February, 1922.
Statistics concerning sales, stocks, and out
standing orders as furnished by 33 department
stores in this district follow :
40.8
29.0
65.6
7.4
25.7
49.3
28.5
40.1
25.7
22.2
5.6
— 5.4
— 29.9
.5
— 11.1
6.8
1.8
— 2.2
3.2
— 10.9
51.0
18.3
62.5
9.0
29.5
45.0
17.8
37.6
22.1
18.3
The majority of reports recently received in
dicate that the volume of orders placed for
spring and summer deliveries has been con
siderably greater in all lines than it was last
year. Prices during February were reported as
KBRUARV PRICES 1922 =100%=FEBRUARY 1922 SALES
U-S.BUREAU OP LABOR INDEX
NO WHOLESALE PRICES
Hi ■ i
I^:\lil/J
1
AGRICULTURAL IMPLEMENTS
J■■■
AUTOMOBILE SUPPLIES
A U T O M O B IL E T IR E S
DRUGS
DRV G O O D S
F U R N IT U R E
G R O C E R IE S
Net sales (percentage increase or decrease51')
February, 1923, compared with February, 1922
20.9
February, 1923, compared with January, 1923 — 11.4
Period January 1 to February 28,1923, com
pared with same period in 1922...................
17.6
Stocks (percentage increase or decrease*)
February, 1923, compared with February, 1922
February, 1923, compared with January, 1923
4.4
9.6
Percentage of average stocks on hand at close
of each month since January, 1923, to aver
age monthly sales during same period..........
465.8
Percentage outstanding orders at close of
February, 1923, to total purchases during
year 1922 ..................................................................
10.9
* (— ) Decrease.
HARDW ARE
SHOES
S T A T IO N E R Y
0
20
40
60
8 0 100 120 140 160
Dollar Value of Sales of Representative Wholesale Firms and General
Wholesale Prices in February, 1923, compared with February, 1922
“ advancing” by a majority of the firms in all
lines. The general level of wholesale prices as
indicated by the index number of the United
States Department of Labor was six-tenths of
1 per cent higher in February, 1923, than in
43
FEDERAL RESERVE AGENT AT SAN FRANCISCO
January, 1923, and 11.3 per cent higher than in
February, 1922.
Collections during the past three months
have been reported as follow s:
Number of Firms Reporting Collections as
Excellent
Good
Fair
Poor
December, 1922................. 2
January,
1923................. 5
February, 1923................. 3
57
52
42
67
67
74
13
12
11
Employment
The winter peak of unemployment in this
district appears to have been passed during
February, the gradual increase in industrial ac
tivity and resumption of agricultural work in
some states having resulted in a marked in
crease in the number of men employed. In
creased employment of unskilled labor in the
lumber camps was a noteworthy feature of the
month. Continued abnormal building activity
has resulted in a shortage of certain classes of
skilled building trades artisans in a few sec
tions of the district.
Compared with February, 1922, employment
during February, 1923, was greater in all sec
tions and industries of the district. Of the 17
principal copper mines in the Intermountain
territory, which in 1920 produced over half the
copper mined in the United States, 15 are now
operating and employing large numbers of
men, whereas on February 1, 1922, only 8 of
these mines were operating, and these on a
limited scale. Reports from the 10 principal
lumbering sections of Idaho, Oregon, and
Washington show that 85,000 loggers and lum
bermen were on the payrolls March 1, 1923,
compared with 55,000 men on March 1, 1922,
an increase of 54 per cent. Part time employ
ment, which was prevalent in the district a
year ago, has now practically disappeared.
Compared with February, 1922, employment
in manufacturing industries during February,
1923, increased in Los Angeles, San Francisco,
and Seattle, and was approximately the same
in Portland, according to figures compiled by
the United States Employment Service of the
Department of Labor. Figures showing the
total number of workers on the payrolls of 40
manufacturing firms usually employing 501
men or more are given in the following table:
Numberof
Firms
Los Angeles.....................
Portland...........................
San Francisco..................
Seattle ..............................
16
8
10
6
____
40
Number of Men on Payroll*
Feb. 28,
Feb. 28,
1923
1922
31,890
8,302
7,254
2,349
49,795
24,448
8,395
6,864
2,094
41,801
*These figures do not represent the total number of men engaged
in manufacturing activities in these cities, but only the pay
roll figures of a selected number of firms.
Building Activity
Building permits issued in 20 principal cities
of this district during February, 1923, were
substantially greater, .both in number and
value, than in February, 1922. Comparisons
with the latter month and with the month of
January, 1923, are made in the following table:
Percentage Increase or Decrease (—) in Number and Value of
Building Permits, February, 1923, compared with
Feb., 1922
Jan., 1923
N u m b er................................................... 28.5
Value ....................................................... 52.4
— 5.2
10.1
The decline in the number of permits issued
during February, 1923, compared with January,
1923, was largely seasonal.
Building Permits Issued in 20 Principal Cities, Twelfth Federal
Reserve District, 1922*1923
Considered geographically the reports for
February, 1923, show an increase in the num
ber of permits granted in 14 of the 20 cities
compared with February, 1922, while the value
of construction involved was greater in 15 cities.
(B) Building Permits—
February, 1923
No.
Value
Berkeley .......
Boise ..............
Long Beach...
Los Angeles..
Oakland ........
O g d e n ............
Pasadena . . . .
Phoenix ........
P ortland........
Reno ...............
Sacramento ..
Salt Lake City
San Diego----San Francisco.
San Jose.........
Spokane .........
Stockton .......
Tacoma .........
156
68
197
408
4,104
932
15
279
43
817
9
251
30
403
782
100
661
64
106
241
D istrict.......... 9,666
$
February, 1922
No.
Value
503,642
28,671
428,210
3,045,285
12,080,310
2,041,521
42,080
759,817
63,225
1,674,150
147,760
595,178
204,980
673,350
3,278,676
204,980
2,091,380
139,165
371,560
456,495
151
47
175
301
2,842
537
6
195
48
934
8
203
37
308
609
74
691
84
81
269
$
$28,830,435
7,600
$18,917,868
432,766
20,757
819,714
1,164,084
7,579,798
1,424,772
6,325
402,772
120,466
1,541,745
27,600
678,307
47,630
490,357
2,830,991
121,570
611,635
132,190
134,428
329,961
44
M O N TH LY REVIEW OF BUSINESS CONDITIONS
According to the United States Department
of Labor, wholesale prices of building materials
have advanced steadily for the past 11 months,
and on March 1, 1923, were approximately 23.0
per cent higher than on March 1, 1922. Build
ing materials prices are now only 33.6 per cent
below the peak point reached in April, 1920
(300.0). In view of this fact, the increase in
the number of permits issued, compared with
a year ago, is a more representative index of
the increase in the physical volume of construc
tion than would be a comparison of the dollar
values of the permits granted.
As an index of the relative amount of build
ing in various sections of the district, the fol
lowing table showing the per capita value of
building permits granted during February,
1923, has been constructed:
index number of wholesale prices advanced
11.3 per cent. Retail prices have changed little
during the year. An increase of 18.7 per cent in
debits to individual accounts indicates, there
fore, an increase in the physical volume of
business transacted in February, 1923, com
pared with February, 1922.
Business Failures
The record of business failures for February,
1923, was distorted by the failure of one large
concern in the State of Utah. Eliminating the
figures for this failure, which had liabilities of
approximately $2,000,000, the reports show a
normal seasonal decline in the number of failLIABILITIES IN MILLIONS
250
A
Northern California.$ 7.00
Southern California. 22.01
B o i s e ...........................
1.34
O g d e n .........................
1.28
P h oen ix ...................... 2.17
R e n o ........................$12.29
Salt Lake Ci t y. . . .
1.73
S eattle..................... 6.63
Spokane ................
1.33
Tacoma .................. 4.70
Bank Debits
M IL L IO N S OF DOLLARS
2600
\
2400
2200
1600
\
\
%
\
\
\
\
W
V
.
......................
✓
✓
/
1 9 2 2 ,...
/
/
/
~ / \
\/\
/
»
^
' \
\
200
%
ISO
V
IOO
IL IT IE S
L
L, t i l
7
i l
1
50
! .. 1 _.L. J___I... L. ■ I . I . . - ! - J__ 1__J_
1922
1923
Business Failures, Twelfth Federal Reserve District, 1922-1923
Note: T h e increase in liabilities in February, 1923, was due to the failure o f one
concern in Salt Lake City, Utah.
ures and the amount of liabilities involved in
February, 1923, compared with January, 1923.
The number of failures declined 24 per cent,
and reported liabilities were less by 16 per cent.
In the country as a whole business failures
during February were substantially below the
(C) Bank Debits* —
Four weeks
ending
Feb. 28, 1923
w
Debits to Individual Accounts in 20 Principal Cities, Twelfth Federal
Reserve District, 1922*1923
than in January, 1923, the latter being a sea
sonal movement. This is the tenth consecutive
month during which debits to individual ac
counts have been greater than in the corres
ponding month a year ago. The percentage in
crease in February, 1923, was greater than in
any of the previous nine months.
In the year period February, 1922, to Feb
ruary, 1923, the United States Bureau of Labor
V v
\A
V
sA
/
/
* Y
1
»
1
f
1
1
1
NO. OF rA ILU R £
/
«
1
1
2000
1923
\
\
\
t y
J __ 1__ L_ Jl
The volume of business transacted in the
district during February, 1923, as reflected by
reports of debits to individual accounts in 20
principal clearing house centers, was 18.7 per
cent greater than in February, 1922, and as
reported from 21 cities, was 5.4 per cent less
NO. OF FAILURES
10
B erkeley...................................... $
Boise .............................................
Fresno .........................................
Long Beach.................................
Los Angeles................................
Oakland ......................................
Ogden .........................................
Pasadena.....................................
P h oen ix .......................................
Portland .....................................
Reno ............................................
Sacramento ...............................
Salt Lake City............................
San Diego ..................................
San Francisco............................
San Jose.......................................
Seattle .........................................
Spokane ......................................
Stockton .....................................
Tacoma .......................................
Yakima .......................................
14,882
10,444
41,982
49,853
586,622
110,542
26,272
27,533
16,442
124,494
7,869
41,237
54,478
42,227
680,420
19,654
140,288
40,215
18,856
31,456
8,385
Total ........................................ $2,094,151
*000 Omitted.
Four weeks
ending
Mar. 1,1922
$
16,167
9,505
36,352
25,555
437,489
72,346
16,013
20,571
114,376
7,943
48,007
44,947
32,864
629,252
15,167
128,555
36,193
18,018
30,002
10,127
$1,749,449
FEDERAL RESERVE AGENT AT SAN FRANCISCO
normal of past years, for the first time since
early in 1921.
R. G. Dun and Company’s comparative fig
ures of the number and liabilities of business
failures in the states of this district follow :
February, 1923
January, 1923
No.
Liabilities
No.
Arizona ..............
1
California ........... 74
Idaho .................. 10
Nevada .......................
Oregon ......
23
Utah ........ ..
11
Washington . . .
37
District ........... 156
$
14,943
701,689
127,426
..
195,573
2,243,783
536,592
$3,820,006
Liabilities
3 $ 38,200
95
828,906
12
172,227
1
91,000
34
324,015
15
138,273
46
581,678
206
$2,174,299
Savings Accounts
The total amount in all savings accounts, as
reported by 75 banks in 7 principal cities, in
creased 1.5 per cent during the month ended
February 28th, being on that date $877,113,000
compared with $864,077,000 on January 31st.
Savings deposits in the district as a whole, and
in six of the seven reporting cities, are now at
the highest point in the past four years, the
most recent figures for Salt Lake City exceed
ing the previous record month of March, 1922.
M IL L IO N S OF D O L L A R S
45
Government Financing
On March 8th the Treasury Department an
nounced an offering of United States Treasury
Certificates of Indebtedness in two series dated
March 15, 1923, one series, TS2-1923, bearing
interest at the rate of 4J4 per cent per annum,
and maturing September 15,1923, and the other
series, TM-1924, bearing interest at the rate of
4^2 per cent per annum and maturing March
15, 1924. The interest rate on the one-year cer
tificates is Yz per cent above the rate on the
last similar issue (offered in December, 1922),
a reflection of the higher money rates now
obtaining.
Subscription books were closed on March
14, 1923. In this district total subscriptions
amounted to $41,528,000, of which $34,285,500
were allotted. In the United States as a whole
total subscriptions amounted to $538,859,000 of
which $475,414,000 were allotted. Subscrip
tions entered in this district for Treasury Cer
tificates of Series TS2-1923 were larger in
amount than in any other Federal Reserve dis
trict, except that served by the Federal Reserve
Bank of New York. This district stood fifth
among the twelve districts in the amount of
total subscriptions to both issues.
The purpose of the offering, as stated by the
Treasury Department, was to provide for pay
ments on government obligations coming due
in March, insofar as such payments might be
in excess of tax receipts estimated at approxi
mately $400,000,000, and at the same time to
cover the Treasury’s further cash requirements
between March 15th and May 15th when the
uncalled Victory Notes mature. Approximately
$366,000,000 of Certificates of Indebtedness be
came payable on March 15, 1923, together with
interest on the public debt in the amount of
approximately $135,000,000. Called Victory
Notes to the amount of $90,000,000 and ma
tured War Savings Certificates to the amount
of $75,000,000 are also outstanding, and both
are coming in steadily for redemption.
Banking and Credit Situation
Savings Accounts in Banks in Seven Principal Cities of the
Twelfth Federal Reserve District, 1922-1923
Figures for all of the seven reporting cities,
as of February 28, 1923, show increases com
pared with January, 1923, and February, 1922.
In two cities the increase compared with a
year ago has been over 20 per cent, and in six
cities over 11 per cent. In the district as a
whole the increase for the year period has been
15.6 per cent.
Total loans and discounts of 66 reporting
member banks in the larger cities of the district
increased from $919,162,000 on February 7th
to $938,773,000 on February 28th, declining to
$934,714,000 on March 7th, a net increase of
$15,552,000 for the four week period. “All other
loans,” which are made largely for commercial
purposes, and which are included in “ total
loans and discounts,” increased from $743,112,000 on February 7th to $763,477,000 on March
7th. The latter figure is an increase of $37,207,000, or 5 per cent, since January 17, 1923, and
of $92,000,000, or approximately 14 per cent,
since the low point of February 8, 1922.
46
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
Investments of reporting banks changed lit
tle during the past month. Total deposits on
March 7th, $1,271,271,000, were slightly less
than the figure reported on February 7th,
$1,275,439,000, although they reached the rec
ord figure of $1,285,631,000 during the inter
vening period.
As the amount of their loans to customers
has risen, reporting city member banks have
increased their borrowings from the Federal
Reserve Bank, which on March 7th stood at
$27,849,000, compared with $19,538,000 on Feb
ruary 7th, an increase of $8,311,000, or 42 per
cent. Borrowings of country member banks
remained practically unchanged during the
month at $18,000,000.
M IL L IO N S OF DOLLARS
market were then 5y2 per cent, compared with
5 per cent at the end of February.
The discount rate of this bank on all classes
of paper and all maturities was advanced from
4 to 4y2 per cent on March 6, 1923. Changes in
the discount rate of the Federal Reserve Bank
of San Francisco since December, 1919, are
shown in the following table:
December 26, 1 9 1 9 . . November 2, 1921___ 5%
February 2, 1920___ 6 °fo January 23, 1922 ...
July 25, 1921...............Sy2% July 8, 1 9 2 2 . . . . . . . . 4 %
March 6, 1923...............4 y2%
Discount rates at all of the twelve Federal
Reserve banks are now the same, at Ay2 per
cent, the banks at Boston and New York hav
ing raised their rates from 4 to 4y2 per cent on
February 23, 1923.
M IL L IO N S OF DOLLARS
320r
260
/ / V
*
T O T A L RESERV 'E S
240
2 00
i j
FE DERAL fi ESERVE NOTE
C IR C U LA TIO N
160
120
IN V E S TÍ IE N TS ,.*
00
*
... “ V5S*
400
40
300
*
v - - ;
TOTAL BILLS 015 C0UNTE
__ 1___L
1922
100
50
i i _1__ 1—
i
i
_ i I x J . _Ü_L. J—
1922
- U 1__
1_l._
1 , I...
.1__J___
1923
Total Deposits. Loans and Discounts, Investments, and Bills Payable
and Rediscounts of Reporting Member Banks
Federal Reserve note circulation, at $202,383,000 on March 14th, was at the lowest point
reached since the peak of 1920, and about 9
per cent below the average circulation during
the year 1922, approximately $220,000,000.
Interest rates charged customers of banks in
this district remained unchanged in general
during February and the early part of March.
In the New York market the rate on prime
commercial paper, which was established at
4^4 per cent during the week ending February
17th, advanced to 5 per cent during the week
ending February 24th, the rate prevailing on
March 16th. Time money rates in the same
11
11
<
»
__ i__ i__
1923
Total Reserves, Federal Reserve Note Circulation, Bills Discounted,
and Investments, Federal Reserve Bank of San Francisco
BILLS P VYABLE A MO REDI! COUNTS
WITH FEDERAlf ESERVE BANK
__ 1__ 1—
... L-..L .
The activity which characterized the accept
ance market during January and the early part
of February was succeeded by a period of dull
ness during the four weeks ending March 15th.
The rate on prime bills has remained at 4 per
cent. Reports received by this bank from 35 of
the principal accepting banks in the district
show the following changes in the amount of
bills purchased and accepted during February,
1923, compared with January, 1923, and Febru1922.
February, 1923, compared with
Feb., 1922
Jan., 1923
Amount of bills accepted ........... ..+21.9
Amount of bills b o u g h t..................— 53.2
Amount of bills held at close of
month ..............................................— 18.2
— 39.5
— 45.1
+ 15.9
The principal commodities upon which these
acceptances were based were cotton, sugar,
dried and canned fruits, and wheat.
47
FEDERAL RESERVE AGENT AT SAN FRANCISCO
PRINCIPAL RESOURCE AND LIABILITY ITEMS OF REPORTING MEMBER BANKS IN RESERVE
CITIES IN TWELFTH FEDERAL RESERVE DISTRICT
March 7, 1923
Num ber o f R eporting Banks ....................................................................
66*
Loans and Discounts (including rediscounts)...................................$ 934,714,000
Investments
February 7. 1923
March 8,1922
68*
66*
$ 919,162,000
$ 842,008,000
307,733,000
....................................................................................................
354,213,000
361,143,000
Cash in Vault and with Federal Reserve Bank.................................
117,415,000
119,289,000
98,552,000
Total Deposits.................................................................... ............................
1,271,271,000
1,275,439,000
1,131,448,000
Bills Payable and Rediscounts with Federal Reserve Bank..........
27,849,000
19,538,000
27,614,000
•Mergers have reduced the number of reporting banks, but comparisons of resource and liability items have not been affected.
COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN FRANCISCO
AT CLOSE OF BUSINESS, MARCH 14, 1923
RESOURCES
Total Reserves........................................................................................
March 14.1923
February 14,1923
March 15. 1922
$252,534,000
$263,599,000
$285,332,000
Bills Discounted.....................................................................................
42,926,000
42,951,000
56,860,000
Bills Bought in Open Market......................................................... , ..
31,663,000
24,684,000
8,318,000
United States Government Securities...........................................
34,742,000
34,742,000
39,386,000
Total Earning Assets.......................................................................... , , $109,331,000
$102,377,000
$104,564,000
58,719,000
54,182,000
48,217,000
$420,584,000
$420,158,000
$438,113,000
Capital and Surplus............................................................................ ......... $ 23,030,000
$ 23,034,000
$ 22,583,000
150,561,000
144,876,000
All Other Resources*........................................................................... . . ,
Total Resources...................................................................... . ,
L IA B IL IT IE S
Total
Deposits....................................................................................... . .. 153,817,000
Federal Reserve Notes in Actual Circulation.............................
202,383,000
207,230,000
225,504,000
All Other Liabilities!............................................................................
■ 41,354,000
39,333,000
45,150,000
Total Liabilities....................................................................... , . .$420,584,000
$420,158,000
$438,113,000
♦Includes “Uncollected Items” ....................................................... ........
42,577,000
42,572,000
41,445,000
flncludes “Deferred Availability Items” ....................................... ........
40,176,000
38,337,000
39,593,000
Those desiring this review sent them regularly will receive it without charge upon application.
THE COPPER MINING INDUSTRY IN 1922
In March, 1922, this bank published a special
report on the copper mining industry, with par
ticular reference to conditions in the Twelfth
Federal Reserve District, where in recent years
approximately three-fifths of the blister copper
of the United States and one-third of that of
the world has been produced. The condition of
the industry at that time was summed up
briefly as follows : “ The present condition of
the copper industry is reflected in figures show
ing that mine production of the metal in the
United States today is at the rate of 20 per
cent of pre-war normal production, that stocks
of refined copper and blister and material in
process of refining on January 1, 1922, were
793.000.000 pounds compared with average pre
war stocks of 360,000,000 pounds and that the
price of electrolytic copper dropped from 35.74
cents per pound in March, 1917, to 12 cents per
pound in August, 1921, and is today (March
1st) at 12.75 cents, 9.6 per cent under the aver
age pre-war price, whereas the level of prices
of all commodities at wholesale, according to
Bradstreet’s index number, is 27 per cent above
the pre-war level,” The immediate outlook for
the industry was commented upon favorably
by reason of the increase in the demand for
copper, the rise in prices, and the decline in
stocks which occurred during the last quarter
of 1921 and the first two months of 1922.
It now appears that the trough of the de
pression in this industry had actually been
reached and passed at the time this report was
published, and that the improvement of which
mention was made therein was the beginning
of a substantial recovery. The extent of this
movement and its importance to this district
warrant its brief discussion here.
Productive activity in the copper mining in
dustry, which had been greatly restricted since
April, 1921, was resumed on a large scale dur
ing April, 1922, and by May, 1922, nearly all of
the principal mining companies in the United
States had taken steps to reopen their proper
ties and commence mining operations. Smelter
production of copper in the United States in
creased steadily throughout the year, advanc
ing from 25,800,000 pounds in January, 1922, to
94.000.000 pounds in June, 1922, and 103,000,000
pounds in December, 1922. Output during the
latter month was at the rate of 1,240,000,000
pounds a year, a figure slightly in excess of
normal production of pre-war years.
Refinery production of new copper from
domestic ores during 1922 was estimated by
the United States Geological Survey at 897,000,000 pounds, 288,000,000 pounds more than
was produced during 1921. The figure for 1922
is still well below production in the pre-war
year 1913 when total refinery output from
domestic ores was 1,237,000,000 pounds. Re
finery production of new copper from foreign
ores, including imports of refined copper, was
about 501,000,000 pounds during 1922, making
total production of new refined copper during
the year 1,398,000,000 pounds. During 1921
there were 1,020,000,000 pounds of new refined
copper produced in the United States, and dur
ing 1913, 1,615,000,000 pounds.
Increased production of copper was pre
ceded by increased consumption of the metal,
accompanied by a considerable reduction in
stocks during the year 1922. The figures for
refined copper are given in the following table
based on reports of the United States Geologi
cal Survey:
1921
1922
Stocks of new refined cop(pounds)
(pounds)
per January 1.....................
659,000,000 459,000,000
Refinery production from
domestic so u rces.............
609,000,000 897,000,000
Refinery production from
foreign sources, includ
ing estimated imports of
refined copper* ................
411,000,000 501,000,000
Total Su p p ly ................. 1,679,000,000 1,857,000,000
Total withdrawn on domes
611,000,000 837,000,000
tic account.........................
Exports including unrefined
black blister and con
verter copper in bars,
pigs, and other forms,
and refined in ingots,
bars, rods, etc....................
609,000,000 743,000,000
Total Consumption.... 1,220,000,000 1,580,000,000
Stocks December 31st........
459,000,000 277,000,000
*Figures on imports of copper during last quarter of 1922 partly
estimated.
Stocks of blister copper and material in
process of refining in the hands of smelters, in
transit to refineries, and at refineries on De
cember 31, 1922, were estimated to be 352,000,000 pounds compared with 283,000,000 pounds
held on December 31, 1921.
The price of copper has risen sharply during
the first months of 1923. The average monthly
price of electrolytic copper on the New York
market during 1922 and monthly since January,
1923, are shown in the following table:
(Cents per pound)*
____
1922 Average............................... .13.632
January,
1923.............................14.760
February, 1923............................15.605
March 16, 1923........................... ..17.000
*Delivered price.
The present quotation is approximately 9.5
per cent above the average price quoted in the
year 1913, whereas general wholesale prices,
according to the index of the United States
Department of Labor, are now 57 per cent
above the 1913 average.
The chief restriction on mine output at the
present time is the shortage of labor in several
mining districts.
@FedFRASER