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MONTHLY REVIEW OF B U S IN E S S C O N D IT IO N S ISAAC B. NEWTON, Chairman of the Board and Federal Reserve Agent Federal Reserve Bank o f San Francisco No. 3 San Francisco, California, March 20,1928 Vol. X II S U M M A R Y O F N A T IO N A L C O N D IT IO N S Prepared by the Federal Reserve Board Production and distribution of commodities increased further in February, while wholesale com m odity prices remained practically un changed. Commercial loans of member banks showed a larger increase in February and the first half of March than at the same season in other recent years. Production. Production of manufactures in February, as indicated by the Federal Reserve Board’s index, increased 3 per cent over Janu ary and was 2 per cent larger than a year ago, while production of minerals declined slightly and continued substantially smaller than last year. Factory employment and payrolls showed a seasonal increase in February but continued at a lower level than a year ago. Output of iron and steel, automobiles, and agricultural ma chinery has increased considerably since the first of the year. Daily average production of steel ingots in February was larger than in any other month since last March, and current re ports indicate that output was sustained in the first three weeks in March of this year. Pro duction of non-ferrous metals also increased in February. A ctivity in the textile industries has shown little change since the first of year. Pro duction of bituminous coal and crude petro- PER CENT Ì .............. leum, which decreased in February, increased slightly in the first half of March. Building contracts awarded were larger in February than in the corresponding month of any pre vious year, reflecting chiefly a large volume of awards for residential construction in the New York and Chicago districts. Contracts let in the first two weeks of March were in ap proximately the same volume as in the corre sponding period of last year. Trade. Sales of wholesale firms in leading lines increased in February and were slightly larger than a year ago. Sales of department stores, after allowance for the customary sea sonal changes, were in about the same volume as in January and somewhat smaller than a year ago. Stocks of merchandise carried both by wholesale firms and by department stores showed a seasonal increase in February. Freight carloadings have shown somewhat more than the usual seasonal increase since the beginning of the year, but have continued to be in smaller volume than in the corresponding period last year, owing chiefly to much smaller shipments of coal. Loadings of merchandise in less than carload lots and of miscellaneous commodities have been less than in the correR CENT > MANUFACTURES V . f-T—-— — / MINERM.S r 1 , ,----------P R O D U C T IO N O F M A N U F A C T U R E S A N D M IN E R A L S Index numbers of production of manufactures and minerals, ad justed for seasonal variations (1923*1925 average» 1 0 0 ). Latest figures, February, manufactures, 109; minerals, 103. ... 100Ìi *\ Aft 90L W 1924 I a 1925 1926 1927 W H O L E S A L E P R IC E S Index of United States Bureau of Labor Statistics (1926 prices = 100, base adopted by Bureau). Latest figure, February, 96.4. Those desiring this Review sent them regularly will receive it without charge upon application. h 1928 W M arch, Î M O N T H L Y REVIEW OF BUSINESS CONDITIONS 18 sponding period of the last two years, while loadings of live stock and grain products have been larger. Prices. The general level of wholesale com modity prices, as indicated by the Bureau of Labor Statistics' index, remained practically unchanged in February at approximately 96 per cent of the 1926 average. There were decreases PER CENT Bank Credit. From the middle of Februz to the middle of March, loans and inve ments of member banks in leading cities creased by 200 million dollars, reflecting growth in the banks’ commercial loans. Loc on securities and investments at these bar showed little change for the period. The volu of reserve bank credit outstanding increas BILLIONS OF DOLLARS f i /\LL OTHER1 LOANS L,ARGELY CC>MMERCIAL 6 10 -----INVES" FMENTS 1924 1925 1926 1927 1928 W M O N E Y RATES W eekly rates in N ew Y ork money market: commercial paper rate on 4- to 6-months paper, acceptance rate on 90-day paper, and rediscount rate of the Federal Reserve Bank of New York. in the prices of cotton, sugar, non-ferrous metals, chemicals and rubber, as well as a seasonal decline in dairy products prices. In creases occurred in prices of grains, metals, hides and leather products, and steel. In the first tw o weeks of March, prices of grains, hogs, and cotton advanced, while prices of cattle and rubber showed further declines. W 1924 LOANS 01N SECURITIE:S î 1925 1926 1927 1928 ' M E M B E R B A N K C R E D IT Monthly averages of weekly figures for banks in 101 leading ci Latest figures are averages for first two weekly report dates in March. somewhat from February to March, chiefly consequence of increased borrowings by me ber banks, which in part reflected further wi drawals of gold for export. During the fc weeks ending March 21st, conditions in 1 money market were firmer; the rate on pri: commercial paper increased from 4 to 4-4% ] cent and there were advances in time rates security loans. T W E L F T H F E D E R A L R E S E R V E D IS T R IC T C O N D IT IO N S In the agricultural areas of the Twelfth Fed eral Reserve District physical conditions dur ing recent weeks generally have favored win ter planted crops and have facilitated spring farming operations. A shortage of rainfall is reported, however, in California, Nevada, and Arizona. (O n March 22nd and 23rd, after this Review was closed, rain was reported to be falling over large areas of these states.) Industrial activity during the past month, although showing seasonal expansion, con tinued at a slower pace than in the correspond ing month of 1927. A full seasonal gain in building and construction activity has been evidenced by marked increases in the value of building permits issued in principal cities and has been reflected in the growth of output at lumber mills of the district. During February, flour mills of the district produced a record volume of flour for that month, continuing the strong upward movement in production which began in January. Increased industrial and agricultural activity has been accompanied by a decline in unemployment. Seasonal increases in distribution and trade were reported during February, 1928. Dollar value of sales at wholesale and at retail was larger than in February, 1927. In wholes trade, gains in sales during the second moi of the year were larger than usual but sales retail showed a slightly less than seaso: growth. Carloadings increased during Feb ary, principally because of heavier shipments lumber products. Figures of total carloadir in the district were larger than a year ago. The general level of com m odity prices 1 changed little during the past month. A sli^ advance in grain prices, and small movemei in prices of other commodities, important this district, have been noted. Banking and Credit.— A moderate increase commercial demand for funds has accompan: seasonal expansion in trade and industry. Co mercial loans at reporting member ban however, are still smaller in amount than tl were a year ago. Customers’ demand depos have declined slightly and commercial loc have increased. Concurrently, there has be an increase in discounts at the Federal I serve Bank of San Francisco, largely behalf of city member banks. Interest ra remained unchanged during February a early March at levels slightly below those o year ago. M arch , 1928 FEDERAL RESERVE AG EN T AT SAN FRANCISCO Agriculture Spring rainfall has been light throughout the Twelfth District, and in Arizona, California, and Nevada the total rainfall up to March 13th was considerably below normal. Uncertainty also exists as to the prospective supply of water for summer irrigation in these states, because of the relatively small snowfall in their m oun tain areas. R A I N F A L L (in inches)— Twelfth District A rizo n a: Flagstaff ........................ Phoenix ........................... California: Eureka ............................. Fresno ............................. L os A n geles ................. Red Bluff ...................... Sacramento .................... San D i e g o ...................... San F r a n c is c o ............... Idah o: Boise July 1.1927 July 1,1926 July 1 M ar. 13,1928 (Actual) 16.8 5.2 M ar. 15,1927 (Actual) 15.4 9.6 M ar. 15 (Normal) 18.4 7.2 44.4 9.8 18.1 25.5 16.2 15.0 23.4 35.4 7.4 12.0 19.7 15.7 8.1 18.5 18.1 5.5 8.2 16.6 8.6 7.4 14.7 ............................... 10.6 10.5 8.9 N ev a d a : Reno .................................. 3.5 7.4 7.9 7.7 30.1 8.5 42.5 8.7 35.5 O re g o n : Baker ................................ Portland ........................ U ta h : Salt Lake C i t y ............. W a sh in g to n : Seattle ............................. Spokane ........................... 11.3 13.3 10.0 24.4 16.4 26.0 12.8 27.3 13.3 The relatively small apple crop produced in the states of the Pacific Northwest during 1927 has moved to market at satisfactory prices. Sea sonal shipments of apples from Idaho, Oregon, and W ashington from June 1, 1927, to March 1, 1928, totaled 34,220 carloads, compared with 40,734 carloads shipped during the correspond ing period a year ago. Storage holdings of apples in W enatchee and Yakima Valley cen ters on March 1, 1928, were approximately 14 per cent larger than on the same date in 1927. Larger storage holdings within the district represent, in considerable part, increased cold storage facilities, which have enabled producers to store their apples at shipping points rather than at Eastern markets. Estimated production of the 1927-1928 Navel orange crop in California remains unchanged from one month ago when it was reported as 11,650,000 boxes. The 1926-1927 orange crop was approximately 12,154,000 boxes. Ship ments of oranges and lemons from California during the current season have been approxi mately 6 per cent and 32 per cent smaller in volume, respectively, than a year ago. Prices received for oranges (f. o. b. California ship ping points) during February, 1928, averaged approximately 50 cents per box (14.6 per cent) higher than during February, 1927. Similarly, lemons sold at prices approximately $2.64 per box (111.8 per cent) higher than a year ago. 19 Physical conditions in winter wheat growing sections have thus far favored the 1928 crop. Farm stocks of wheat in the district on March 1st were larger than a year ago, according to a report issued by the United States Department of Agriculture. The percentage of the previous year’s crop marketed by that date, however, compared favorably with the average for re cent years. W H E A T A N D B A R L E Y — ST O C K S O N F A R M S Shipped Out or To Be Shipped Out of County Where Grown (In PerCent of March 1, ------------^ Previe »us Yea r'sCrop) ' TenFive-Yearf 1927 1928 Average r—M arch i,—\ Y e ar! W h ea t (bu.)* ( b u .)* 1927 Average (bu.)* 1928 A r i z o n a ............ 14 145 95 87 13 20 (1 0 ) (1 0 ) (8 )8 C a lifo rn ia . . . . 1,202 62 819 856 66 65 (6 ) (1 0 ) (8 )8 5,180 2,956 3,570 72 79 64 (1 6 ) (1 2 ) (1 5 )8 N evada .......... 41 97 56 16 19 15 (2 0 ) (1 0 ) (1 4 )8 O r e g o n ............ 3,214 2,058 2,059 65 62 64 (1 2 ) (1 0 )8 (1 1 ) U ta h ................. 1,022 1,431 35 1,288 45 45 (2 4 )8 (2 6 ) (1 8 ) W a s h in g t o n . . 4,801 3,681 4,006 80 75 73 (9 ) (9 ) ( 1 0 )8 11,464 T w e lft h D is t r ic t 15,278 11,922 71.2 70.6 65.1 (1 1 .4 ) (1 1 .2 )8 (1 1 .1 ) U n ite d S ta te s ..: 130,007 130,230 127,254 72.6 69.8 63.7 (1 5 .7 ) (1 4 .9 ) (1 7 .0 )8 Barley A r i z o n a ............ 70 63 20 79 15 20 (9 ) (8 ) ( 9 )8 1,367 C a lifo rn ia . . . . 4,212 2,838 62 65 63 (13) (5 ) (1 2 )8 965 663 759 25 32 25 (1 6 ) (1 7 ) (2 0 )8 42 61 50 N e v a d a ........... 12 9 15 (2 0 ) § (1 5 ) (1 5 ) O r e g o n ............ 637 344 389 16 21 15 (2 0 ) (1 5 ) (1 9 )8 U ta h ................. 240 128 140 15 18 15 (2 2 ) § (1 6 ) (1 7 ) W a s h in g t o n . . 487 424 435 26 28 30 (2 0 ) (2 0 ) (2 0 )8 T w e lft h D is t r ic t 3,820 5,894 4,679 50.2 46.9 53.1 (1 3 .7 ) (9 .3 ) (1 1 .6 )8 U n ite d S ta te s .. 61,578 39,183 32.8 36.2 44,015 30.3 (2 3 .2 ) (2 1 .2 ) (2 5 .2 )8 *000 o m itte d . tl9 2 3 -1 9 2 7 . $1917-1926. §1918-1927. F ig u r e s in pare n th e se s in d ica te p e r c e n ta g e o f p r e c e d in g y e a r ’ s c r o p r e m a in in g o n farm s M a r c h 1st. S o u r c e : U n ite d S tates D e p a r tm e n t o f A g r ic u ltu r e . Livestock ranges in the Twelfth District are reported to be in good condition, with the ex ception of some areas in Nevada and California which have suffered from lack of rainfall. Available stocks of hay are believed to be ade quate for feeding livestock during any tem porary shortage of range forage. Figures show ing receipts of livestock at the principal mar kets of the district, indicate that cattle and sheep receipts have decreased from a year ago, while hog receipts have increased. L IV E S T O C K R E C E IP T S — Eight Principal Markets t-------- January and February-------- > Five-Year* 1928 1927 Average C a ttle and C a lves ............................... 185,397 217,704 212,258 S h e e p .......................................................... 370,174 412,740 356,597 H o g s ........................................................... 593,865 440,050 512,210 *1924-1928. Livestock prices on Pacific Coast markets have remained relatively stable during recent weeks. 20 M O N T H L Y REVIEW OF BUSINESS CONDITIONS Early reports of the spring lamb crop in A ri zona and California indicate an increase in number of lambs as compared with a year ago. In Idaho, Oregon, Utah, and W ashington, where lambing will soon commence, the flocks are reported to be in fine condition. Prices named in early contracts for fat lambs, f. o. b. California shipping points, have been slightly higher than last year. The volum e of contracting for w ool has diminished during the past month, follow ing upon heavy sales by producers in December, January, and early February. Prices have re mained stable at from 33 to 40 cents per pound, at which levels they are from 3 to 10 cents per pound higher than a year ago. The excellent condition of fleeces reflects the satisfactory range and weather conditions of the past winter. Industry During February, industry in the Twelfth Federal Reserve District continued to operate at a slower pace than a year ago. A steady in crease in volume of employment in California and the Pacific Northwest thus far in 1928, however, tends to confirm other available evi dence that industry is experiencing a generous seasonal increase in activity. Expansion in lumbering and logging operations and the be ginning of spring agricultural work have helped to reduce the large surplus of unskilled labor which, as is usual, was present in the cities of the district during the winter months. Greater activity in building, engineering and public works projects has also been an important factor in increasing the demand for workers. The building and construction industry is one of the most important, if not the most im portant, of the non-agricultural industries of the district. Figures of building permits issued during February indicate a full seasonal ex pansion in the industry during that month, particularly in the larger cities of the Pacific Northwest. The January-to-February percent age increase (9 per cent) in value of permits issued in 20 cities was greater than the 19201927 average January-to-February seasonal in crease (2 per cent). The value of permits issued in 94 cities of the district, as reported by S. W . (A ) Industry— Indexes of daily average production, adjusted for seasonal variation. <1923-1925 daily average = 100.) ,---------1928--------- * ,------ 1927------, M anufactures: Feb. Jan. D ec. Feb. Flour ........................................................ 131 107 99 102 102 106 92 97 Slaughter of L i v e s t o c k ................. Lum ber ................................................... 102* 110 108 100 Refined Mineral O ils .................... 146 143 145 150 Cem ent ................................................... 146 95 115 123 M in erals: Petroleum (California) ................ 93 93 93 97 Copper (U nited S t a t e s ) !............ 112 102 105 111 Lead (U nited S ta te s )t ................. I ll 104 109 112 Silver (U nited States) t ............... 83 100 100 91 ^Preliminary. fPrepared by Federal Reserve Board. M arch, 1! Straus and Company, was approximately t same as in February, 1927. During 1927, the possibility of an excessi supply of certain types of residential and co mercial structures in the metropolitan areas the district occasioned some concern. Rec( dwelling vacancy surveys made in some of 1 cities where curtailment of construction act ity seemed to be indicated, and where such ci tailment was subsequently effected, have sho1 a more nearly normal occupancy at the pres< time than was the case a year ago. Untenanl space is comparable to other commercial ventories and, in building, as in trade, wh stocks become unduly large, considerable til must ordinarily elapse before effective dema approximates supply. Approxim ately 50 per cent of this distric cut of lumber is consumed in the seven sta of the Twelfth District. It is to be expect therefore, that expanding building progra: will be reflected in some measure by increas activity in the lumber industry. Daily avera cut of lumber, reported by four associatio increased markedly in late January and furtl increases were reported during Februa Partly as a consequence of the sudden uptt in lumbering operations in late January, ho ever, the January-to-February increase in o^ put was not so great as a year ago, and tl bank’s seasonally adjusted index of luml production declined from 110 in January to ] (preliminary) in February (1923-1925 av age= 100). The volume of orders received mills reporting to the four Pacific Coast luml associations during February exceeded both 1 current output of the mills and the shipmei made on orders previously obtained. T Bureau of Labor Statistics’ index of wholes lumber prices advanced fractionally from 88.5 January to 88.9 in February (1926 prices=10 (B ) E m ploym ent— t---------- California---------- \ t-------------Oregon— — N o . of N o. of N o. N o. Feb., of Feb., Feb., of F el 192 1927 Firms 1928 Industries Firms 1928 159 24,006 24,3 A ll Industries........... 794 140,651 150,275 ( - 1 .5 ) ( - 6 .4 ) Stone, Clay and 134 7,093 7,766 3 1< 48 Glass Products. (— 8.7) — 17.8) ( Lum ber and wood 14,510 61 14,4! Manufactures . . 124 22,904 23,024 (— 0.5) (0.1) 1,922 2,536 2,769 9 18 1,8' Textiles .................... (— 8.4) (4 .1 ) Clothing, Millinery 8,656 517 8,793 10* 51 and Laundering. 66 (2 .2 ) (1 .6 ) Foods, Beverages 1,506 43 and T o b a c c o ... 177 25,128 24,628 1,6: (2 .0 ) (— 7.6) W ater, Ligh t and 7,585 7,775 5 Power ................. (— 2.4) Other In d u stries!. 342 64,594 73,700 iC— 12.3) Miscellaneous . . . . 1,957 14 2,018 33 5,417 5,7, (3 .1 ) ( — 5.3) * Laundering only, tln clu d es the following industries: me machinery and con veyan ces; leather and rubber go chemicals, oils and p a in ts; printing and paper goods. Figures in parentheses indicate percentage changes from Fe ary, 1927. M arch, 1928 Non-ferrous metal (copper, silver, lead, and zinc) prices averaged lower during February than during January, 1928, or February, 1927. Low er zinc and lead quotations were respon sible for most of the decline in the January-toFebruary comparison, copper and silver prices showing little or no change. A s compared with February of last year, copper prices in Feb ruary, 1928, were 9 per cent higher ; silver prices were approximately one per cent low er; and lead and zinc prices were down 15 and 17 per cent, respectively. A fter allowance for seasonal variation, daily average production figures increased for copper and lead and declined for silver during Febru ary as compared with January, 1928. Reports indicate that zinc production also declined dur ing the month. A s compared with a year ago, production of copper increased slightly, while production of lead, silver and zinc decreased. Petroleum production, in California during recent weeks has been at January levels and has continued smaller than a year ago. An agreement has recently been effected among the larger producing companies of the state looking toward a temporary curtailment of production of crude oil, which for some time past has been in heavy supply. Surface hold ings of heavy and refinable crude oils in Cali fornia increased slightly during February. Flour mills of the district have been active during the winter months. The impressive January gain in production carried over into February, and output of flour in the later month was in record volume for this season of the year. From January to February, this bank’s seasonally adjusted index of flour pro duction rose from 107 to 131 (1923-1925 average= 100). Flour moved into consumption (C ) Bank D ebits*-T w o M on th sFebruary, February» 1927 1927 1928 1928 28,164 $ 26,695 12,176 $ 13,333 $ B a k e r s fie ld ............ , ,$ 18,252 18,143 8,702 8,331 Bellingham .......... 43,535 41,325 19,181 19,652 Berkeley ............... 25,896 11,012 27,489 12,075 Boise ....................... 12,661 12,629 6,170 6,095 Eugene ................. . 22,494 22,841 10,260 10,946 Everett .................. 76,718 65,053 35,545 31,274 Fresno .................... 91,953 102,855 43,949 51,152 L o n g Beach 1,889,244 920,904 1,967,588 971,029 L os Angeles 424,195 211,006 462,518 212,069 Oakland ................. 40,647 35,657 16,438 17,087 Ogden .................. 83,882 82,739 38,521 41,223 Pasadena ............ .. 54,913 24,309 67,114 31,750 Phoenix .............. .. 310,985 148,588 299,319 146,509 Portland ................ 7,427 17,012 16,713 8,129 Reno ........................ 667 1,856 1,558 842 Ritzville ................. 94,797 54,243 26,881 45,751 Sacramento 134,154 146,799 56,610 65,739 Salt Lake City 18,582 8,818 19,811 9,307 San Bernardino 136,315 58,180 121,115 58,604 San D iego ............ 2,803,599 2,275,331 1,174,933 San Francisco . . . 1,432,372 52,273 22,709 54,039 24,298 San Jose ............ 27,424 26,588 11,838 13,046 Santa Barbara . 370,839 181,687 423,281 . 200,214 106,901 46,024 102,287 48,095 Spokane ............... 55,752 24,656 61,024 27,616 Stockton ............ 39,519 84,371 81,089 39,399 T acom a ............... 23,677 23,302 10,826 10,897 Yakim a ............... D istrict .......... 21 FEDERAL RESERVE AG EN T AT SAN FRANCISCO $3,557,205 *000 omitted. $3,177,165 $7,213,563 $6,476,673 channels almost as rapidly as it was produced, so that there was little accumulation of stocks at mills. Average prices of representative grades of flour stood at about the same levels in Febru ary, 1928, as in February a year ago. A striking increase in cement output in the district is reflected in a January-to-February rise in the cement production index from 95 to 146 (1923-1925 average=100). Distribution and Trade Seasonal quickening in distribution and trade of the district was noted during February, 1928. Reported sales at wholesale increased by a greater than seasonal amount, while value of sales at retail (on a daily average basis) changed little during February. Discounting the effect of the additional trading day during February, 1928, volume of sales at retail was about 4 per cent above last year’s high levels, while total monthly dollar value of wholesale trade was about 2 per cent larger than a year ago. £X NUMBERS 1 ._ A 1 -*■ A , AA a J \ p c )-*— RETAIL J Al V /À SALEs j w y y A w / / V/HOLESALE I Vy V SALES CAR ,_LOADINGiS W IQOit 1 IOOA W 100*7 109A D IS T R IB U T IO N A N D T R A D E - T W E L F T H D IS T R IC T Indexes adjusted for seasonal variation. 19?3-1925 average = 100. Daily average figures of department store sales and railway carloadings of merchandise freight. Monthly figures of sales at wholesale. Daily average carloadings on railroads of the district also increased beyond the seasonal ex pectation and were above the figures of February, 1927. Larger loadings of forest prod ucts were chiefly responsible for the February increase. Total sales of new automobiles in Arizona, California, Oregon and W ashington, as evi denced by actual registrations of new cars and trucks, decreased from 17,628 in January to (D ) Distribution and Trade— 1928 1927 Jan. Dec. Feb. Index Numbers* 115 107 Ill 110 Feb. Carloadings, M erchandise and Miscellaneous ............................. Sales at Retail .................................. Stocks, Retail (end of m o n th ). . Stock Turnover, R etailî Collections, Retail§ Installment 118 95 117 108 0.22 44.3 15.8 110 93 117 103 114 98 118 112 Actual Figures 0.22 0.42 47.3 16.0 44.2 15.2 114 93 113 104 0.20 43.2 15.7 * Adjusted for seasonal variation, 1923-1925 a v e ra g e = 1 0 0 . tE leven lines combined. ^Proportion of average stocks sold during month. (M ultiply by 12 to get annual rate of turnover.) §Per cent of collections during month to amount outstand ing at first of month. 22 M O N T H L Y REVIEW OF BUSINESS CONDITIONS 15,476 in February, 1928 (a shorter month). There were 18,730 new cars and trucks regis tered during February, 1927. Sales of 57 department stores during Febru ary, 1928, when reduced to a daily average basis, were larger than during February, 1927. Stocks on retailers’ shelves were in creased in anticipation of the usual spring and Easter demand and at the close of February, 1928, were larger than at the close of Febru ary, 1927. Stock turnover was more rapid dur ing February, 1928, than during February a year ago, being at the rate of 2.6 times per year as compared with 2.4 times per year in 1927. Collections have held up well thus far in 1928, being slightly better during February of this year than during February, 1927. R E T A I L T R A D E — Twelfth District D e p a r tm e n t S t o r e s . . . A p p a r e l S t o r e s ............ F u rn itu r e S to r e s . . . . A ll S to r e s ..................... ,--------- N E T S A L E S *--------- F eb., 1928, compared with ■ Jan., 1928 Feb., 1927 — 5.7 (3 7 ) 6.8 ( 57) 3.6 ( 2 6 ) — 0.4 (2 2 ) 0.4 ( 42) — 16.0 (3 5 ) 5.7 (1 2 5 ) — 3.9 (9 4 ) * P e r c e n t a g e in c re a s e o r d e cre a s e ( — )• in d ica te n u m b e r o f s to r e s r e p o r tin g . ST O C K S * Feb., 1928, compared with F e b .,1927 1.5 (4 8 ) 3.7 (1 5 ) — 2.5 (3 0 ) 1.2 (9 3 ) M arch, 1 than prices paid a year ago, while lead and z prices were definitely lower than in Febru; and March, 1927. Dried fruit prices at C; fornia shipping points have been firm, w few changes in quotations, during the past weeks. Canned fruits have been steady prices that have prevailed since late in 19 Prices for oranges declined during January a early February, but since March 1st have covered to approximately the levels quoted the first of the year. Banking and Credit Only a moderate spring expansion in trz and industry in the Twelfth Federal Resei District has been reflected in weekly conditi statements of reporting member banks. Ea ing assets (total loans and investments) these banks have increased 27 million doll from February 1st to March 14th, whereas the same period of 1927 they increased by million dollars. MILLIONS OF DOLLARS F ig u r e s in p aren th eses Sales at wholesale increased in seven of the eleven reporting lines of trade during Febru ary, 1928, as compared with February, 1927. Stocks on hand were considerably smaller at the end of February this year than at the end of February last year, while collections showed improvement over those of a year ago. Prices Stability in the general level of commodity prices, as indicated by indexes published by the United States Bureau of Labor Statistics and other agencies, persisted during February, 1928. The general wholesale price level has fluctuated little since last September. Prices of some individual commodities and groups of commodities important in this dis trict changed considerably, however, during February and early March. A general advance in prices paid for grains — wheat, corn, oats, barley, and rye— has been reported since the close of January. W ith quotations for cattle and hogs slightly lower, and those for sheep and lambs substantially higher, livestock prices during February may be said to have averaged approximately the same as during January. Cotton prices declined during January and the early days of February, but later recovered part of the loss. Continued advances in w ool prices have been recorded by both the Fair child and Dun averages of market quotations. February monthly average prices for nonferrous metals were slightly lower than the January averages. Copper and silver prices at the close of February were equal to or higher M E M B E R B A N K C R E D I T - T W E L F T H D IS T R I C T Figures for about 65 member banks in leading cities, as of mid< Wednesday of each month. Latest figures, March 14th. A gradual shifting from commercial loans investment holdings and loans secured stocks, bonds, and similar collateral has b< noted in condition statements of report: member banks during the past year, a reflect of the apparent slackening in industrial c R E P O R T IN G M E M B E R B A N K S * — Twelfth District (In millions of dollars) Average Condition During M March, February, Ms 1928f 1928 1 T o t a l L o a n s and I n v e s t m e n t s ................. 1,899 1,887 1,: T o t a l L o a n s ..................................................... 1,293 1,273 1, C o m m e rcia l L o a n s ....................................... 940 928 L o a n s on S e cu ritie s .................................... 354 345 I n v e s tm e n ts ...................................................... 606 613 N e t D e m a n d D e p o s its ................................ 789 813 T im e D e p o s its ................................................ 974 966 B o r r o w in g s fro m F e d e ra l R e s e r v e B a n k ................................................................. 62 52 * T o ta l re s o u rce s o f re p o r tin g b a n k s are a p p ro x im a te ly 50 c e n t o f to ta l re s o u rce s o f all b a n k s a n d 70 p e r ce n t o f re s o u rce s o f all m e m b e r b a n k s in th e T w e lfth F e d e ra l serv e D is tr ic t. R e p o r t in g b a n k s e m b ra ce m e m b e r b a n k s b ra n ch e s lo ca te d o n ly in L o s A n g e le s . S a n F r a n c is c o , < lan d, P o r tla n d , T a c o m a , S ea ttle, S p o k a n e , S alt L a k e I an d O g d e n . f P re lim in a ry . M arch, 1928 FEDERAL RESERVE AGENT A T SAN FRANCISCO trade activity during that period. So-called commercial loans have not been so large in amount during recent weeks as a year ago. The moderate seasonal increase in commer cial and industrial demand for credit during the past six weeks has been accompanied by a slight decline in customers’ demand deposits and concurrently there has been an increase in discounts at the Federal Reserve Bank. Increased borrowing at the Federal Reserve Bank of San Francisco has been largely on be half of city member banks. Country member banks’ borrowings are small in amount and have fluctuated within relatively narrow limits during recent weeks. There was no change during the greater part of February and early March in this bank’s portfolio of United States government securities, while holdings of ac 23 ceptances (bills bought) increased slightly. The primary reserve ratio of the Federal R e serve Bank of San Francisco stood at 68.7 on March 14, 1928, compared with 72.8 on Febru ary 15, 1928, and 76.7 on March 16, 1927. F E D E R A L R ESE R VE B A N K O F S A N F R A N C IS C O (in millions of dollars) Average Condition During Month March, February, March, 1928* 1928 1927 125 113 110 T o t a l B ills and S e c u r it ie s ........................ B ills D is c o u n t e d ........................................ 65 57 47 B ills B o u g h t ................................................ 27 23 24 U n ite d S tates S e cu ritie s ........................ 33 34 38 T o t a l R e s e r v e s ........................................... 225 245 255 180 188 177 T o t a l D e p o s its .................................... .. F e d e ra l R e s e r v e N o te s in C ir c u la tio n 151 152 171 *P r e lim in a r y . Interest rates on the bulk of the prime com mercial paper in Pacific Coast money centers ranged from Ax /2 to 6 per cent at mid-March, 1928, compared with 5 to 6 per cent a year ago. C o m p a r a tiv e B u ild in g M a te r ia ls P r ic e s a n d B u ild in g C r a fts W a g e s P a c ific C o a s t a n d U n ite d S ta tes 1. Prices paid by contractors for building materials delivered on the job were, in gen eral, lower in Pacific Coast cities than the average for the United States as a whole. 2. Building crafts wages paid in Pacific Coast cities generally were lower than the average for the United States as a whole. These findings are set forth graphically in the accompanying charts. In the first chart, the bars for individual cities represent the sum of 1927 average prices of a comparable group of building materials, and in the second chart they represent the sum of hourly wage rates of a comparable group of building crafts in May, 1927. The bars labeled Pacific Coast average represent an average of the totals of prices or wages, as the case may be, for all re porting Pacific Coast cities combined. Like wise, the sums of averages for all cities in the United States, included in this study, have been averaged to obtain the horizontal lines labeled United States average. The data from which the United States averages were computed are comparable with the data from which the Pa cific Coast averages were computed. In the case of both prices and wages, the United States average (horizontal line in the charts) is taken as 100, and the bars show the per centage relationship which corresponding Pa cific Coast figures bear to figures for the United States as a whole. PER PER CENT A study of building materials prices and building crafts wages, covering representative cities in the United States during 1927, pro vides the basis for the follow ing conclusions : CENT 100 100 UNITED STATES AVERAGE 75 50- 25- A V E R A G E B U I L D I N G M A T E R I A L S PR ICE S Pacific Coast and United States (For explanation see text) A V E R A G E B U IL D IN G C R A F T S W A G E S Pacific Coast and United States 24 M arch, 1 M O N T H L Y REVIEW OF BUSINESS CONDITIONS Com parative B uilding M aterials Prices and Building Crafts W ages (C o n c lu d e d ) These averages, for reasons some of which are set forth below, cannot be used as absolute indicators of relative building costs in one area as compared with another: 1. The averages of prices are composed of prices for building materials expressed in terms of dollars paid for different kinds of units and commodities (dollars per bunch of shingles, per foot of lumber, per gallon of linseed oil, per ton of steel, etc.) 2. The quantity of each com m odity used in constructing a building varies, not only for different types of structures but also for the same type of structure when built in differ ent localities. 3. The averages for building crafts wages are composed of hourly wage rates only, with no allowance for either the total amount of wages paid or the relative amounts paid at different rates for a given unit of finished construction work. The study does provide some knowledge, however, of the relative position of building materials prices and building crafts wages on the Pacific Coast as compared with the United States. A m ong reasons which may be advanced to explain the lower average of building materials prices and building crafts wage rates in Pa A V E R A G E B U I L D I N G M A T E R I A L S PR ICE S H igher on Pacific Coast than in United States fo r: Lim e W ire nails* H ollow tile Castiron soi.l pipe Steel pipe* Structural steel T a r paper, roofing* Rosin sized sheathing* Lower on Pacific Coast than in United States for: Com m on brick Portland cement D ouglas fir, N o. 1 D ouglas fir, N o. 2 Com m on boards Red cedar shingles Building sand Crushed stone W indow glass Reinforcement bars W hite lead Zinc oxide Gypsum plaster Linseed oil ----------- L IS T O F C IT IE S -----Ak ron Albany Atlanta Baltimore B ay City Birm ingham B oston Buffalo Canton Charleston, S. C. Chicago Cincinnati Cleveland Columbia Columbus Council Bluffs Dallas D ayton Denver D etroit Erie Fairm ont Fall River Flint Fort W ayn e Grand Forks H arrisburg H artford Haverhill H ouston Indianapolis Jackson Jacksonville Kansas City, M o. Lansing Little Rock L o n g Beach Lorain L os Angeles Louisville M anchester M em phis Milwaukee M inneapolis New ark, N . J. N ew Bedford N ew H aven N ew London N ew Orleans N ew Y o rk Om aha Paterson Philadelphia Portland, Ore. Poughkeepsie Providence Reading Richmond, V a . Rochester Rockford Saginaw St. Louis St. Paul Salt Lake City San Antonio San Francisco Scranton Seattle Shreveport Sioux Falls Springfield Syracuse Terre H aute Toledo Trenton Tucson W ashin gton W aterbu ry W aterloo Yonkers Y oungstow n *Only slightly higher on Pacific Coast than in United States. cific Coast cities than in the United States ; whole are the follow in g : 1. W ater transportation is available to of the Pacific Coast cities included in study. 2. These cities are all located relatn close to the timber supplies of the Pa( Northwest. 3. W eather conditions on the Pacific Cc are more favorable for all-year construct activity than in most other regions of United States. 4. Building crafts wage rates are proba influenced by the relatively low cost living in Pacific Coast cities, by the prosj: of a minimum amount of unemployment cause of unfavorable weather during wit months, and by the constant yearly in] of workers desiring to live in Pacific Cc states. The above findings are based upon data re larly published by the United States Bureau Standards and of Labor Statistics. There presented below the names of cities, the bu ing materials, and the crafts embraced by study, together with tables showing those 1 terials and crafts for which the average p: or wage is higher or lower on the Pacific Cc than in the United States as a whole. A V E R A G E B U IL D IN G C R A F T S W A G E S H igher on Pacific Coast than in United States fo r: Plasterers’ laborers Granite cutters Low er on Pacific Coast than in United States fo r : Bricklayers Building laborers Carpenters Cement finishers H od carriers Inside wiremen Painters Plasterers Plumbers Sheet metal worke Stone cutters Structural iron woi /--------------------------------------L IS T O F -----------------------------CRAFTS C O M M O D IT IE Bricklayers Building laborers Carpenters Cement finishers Granite cutters H od carriers Inside wiremen Painters Plasterers Plasterers’ laborers Plumbers Sheet metal workers Stone cutters Structural iron workers Com m on brick Portland cement D ouglas fir, N o . 1 D ouglas fir, N o. 2 Com m on boards Red cedar shingle Lim e Building sand Crushed stone W ire nails W in do w glass H ollow tile Castiron soil pipe Steel pipe R einforcem ent hi Structural steel W h ite lead Zinc oxide Gypsum plaster Linseed oil Tar paper, roofinj Rosin sized sheat
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