Full text of Economic Review (Federal Reserve Bank of San Francisco) : May 20, 1924

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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. VIII

San Francisco, California, May 20, 1924

No. 5

April, owing chiefly to large reduction of forces
at textile and clothing establishments. Con
Factory employment and production of basic tract awards for new buildings reached a
commodities declined in April, and there was higher value than in March and were also
a further recession in wholesale prices. Retail larger than a year ago. Value of building per
trade was larger than in March, chiefly be mits granted, however, declined and was
cause of Easter buying, and was at about the smaller than in the corresponding month of
level of earlier months of the year. There was 1923. Department of Agriculture May 1st esti
a decrease in the volume of borrowing for com mates of yield of winter wheat and rye are
mercial purposes and further easing of money somewhat above the forecasts made in April.
rates.
The acreage of winter wheat is estimated to
Production. The Federal Reserve Board’s be 7.0 per cent less than last year.
index of production in basic industries, ad
Trade. Railroad shipments, which since the
justed to allow for seasonal variations, de middle of March have been smaller than last
clined 2.0 per cent in April. Declines were par year, were 3.0 per cent less in April, 1924, than
ticularly large in the iron and steel, coal, and in April, 1923. Shipments of coal were much
woolen industries. Mill consumption of cotton, below last year, while loadings of merchandise
on the other hand, showed less than the usual and miscellaneous freight were higher.
seasonal reduction between March and April.
Wholesale trade in April, 1924, was in about
Factory employment declined 2.0 per cent in the same volume as during the preceding
Summary of National Conditions

PER CEN T

1919 1920 1921 1922 1923 1924
Production in Basic Industries
Index of 22]basic commodities corrected for seasonal variation ( 1919=100).
Latest fifoi«. April. 114.

Wholesale Prices
Index of U.S. Bureau of Labor Statistic* (1913=100, base adopted by Bureau).
Latest figure. April. 148.

Those desiring this review sent them regularly will receive it without charge upon application.

M ay, 1924

MONTHLY REVIEW OF BUSINESS CONDITIONS

month and as in April, 1923. Sales of dry goods
and hardware were smaller than a year ago,
while sales of drugs and shoes showed some
increase. Department store sales were consid
erably larger in April than in March, owing
partly to the unusually late Easter. Total sales
for the two months were 2.0 per cent greater

increased slightly. Total earning assets de
clined to $795,000,000 on May 21, the lowest
figure since the autumn of 1917,
Further easing of money conditions during
the last week of April and the first three weeks
of May was reflected in a continued rise of the
prices of government securities, in a reduction
M IL L IO N S O F D O L L A R S

4000

3000
2000

/ V s

Discout

’ri\ v

Tòta!
Damine Assets
L
K

1000
0
Factory Employment
Index for 53 Manufacuring Industries (1919=100). Latest figure. April, 97

tptancei
& L1
1.5
-----Sec.

i V jr

1919 1920 192! 1922 1923 1924
Reserve Bank Credit

Weekly figures for 12 Federal Reserve Banks. Latest figure. May 21

than in the corresponding period of 1923. Mer from
to
per cent in the rate for prime
chandise stocks at department stores showed commercial paper, and in a decline in the rate
less than the usual seasonal increase in April, for bankers’ acceptances from 4 to 3 per cent.
On May 1st the discount rate of the Federal
but were at a higher level than a year ago.
Prices. The general wholesale price level, Reserve Bank of New York was reduced from
according to the Bureau of Labor Statistics' 4y2 to 4 per cent.
index, declined 1.0 per cent during April and
reached the lowest point since May, 1922* Summary of District Conditions
Metals and foods showed substantial reducr
Productive activity in the district declined
tions and prices of clothing, fuel, and chemicals moderately during April, but the distribution
also declined, while prices of building mate of goods continued at the high levels of previ
rials and house furnishings remained un ous months. The total volume of business
changed. Farm products, however, advanced transacted, the resultant of these conflicting
2.0 per cent during the month. During the movements, was smaller during April than dur
first half of May quotations on cotton, wheat, ing March and, if correction be made for nor
flour, and hogs increased, while prices of sugar, mal annual growth, was slightly below the level
silk, wool, and metals declined.
of April, 1923. It should be said, however, that
Bank credit. The volume of borrowing for the decline in the district figures for April, as
commercial purposes at member banks ift lead was the case in March, was due solely to ab
ing cities declined somewhat from the high normal conditions prevailing in California. In
level reached early in April during the five- the district outside of that state there has been
week period ending May 14th. There were in a steady increase in business activity during
creases, however, in loans on stocks and bonds the first four months of 1924.
and in investments in securities, so that the
Slight curtailment of lumber production, as
total of all loans and investments at the middle compared with a year ago, was noted during
of May was higher than a month previous, and the month, a movement forecasted during re
in larger volume than at any time in more than cent weeks by small increases in mill stocks
three years.
and continued price weakness. Shipments of
Volume of borrowing by member banks at and orders for lumber continued in large vol
Federal Reserve Banks declined further during ume. Mineral production appears to be stabil
the last week of April and in May, while hold ized at levels slightly below the peak of recent
ings of securities bought in the open market months. The continuous decline in flow of

May, 1924

petroleum from California wells which began
in September, 1923, terminated, at least tempo
rarily, during April when average daily produc
tion increased by a fraction of 1.0 per cent as
compared with March. Stored stocks of petro
leum had risen to another new record figure,
97,335,651 barrels, at the close of the month.
The number and value of building permits
issued in 20 principal cities of the district dur
ing April declined from the seasonal peak of
the previous month, and were in each case
approximately 2.0 per cent below the figures
reported for April, 1923. Restricted produc
tion programs have resulted in a moderate de
crease in employment in the district as com
pared with a year ago.
Comparison of April trade movements, par
ticularly at retail, with those of a year ago are
rendered difficult by the difference in Easter
dates of the two years, and in some cases it has
been necessary to consider the combined figures
for March and April in order to ascertain the
real trend. Sales of 35 reporting department
stores for the two months were 6.1 per cent
larger in 1924 than in 1923, and, while stocks
held this year are slightly larger than those
held a year ago, the rate of stock turnover has
been practically the same. Conflicting tenden
cies have persisted in the wholesale trade, a
reflection of the cautious purchasing attitude of
retail buyers and no definite buying trend is
distinguishable. During April five of the eleven
lines of business reporting to this bank showed
increases in the value of their sales as com
pared with one month ago, and four of the
eleven lines showed increases as compared with
one year ago. The record of business failures
for the district gives the following compari
sons i
Percentage Increase or Decrease ( — )
April, 1924, compared with
A pril, 1923
March, 1924

Number ........................
Liabilities -----

32.2
— 15.3

3.1
—5.9

Changes in prices of individual commodities
have been numerous during recent weeks, but
advances and declines have been in approxi
mate balance, and the general level of prices
for the principal products of the district has
been comparatively stable. For the United
States the level of wholesale prices, according
to the index number of the Bureau of Labor
Statistics, stood at 148 in April, 1924, compared
with 150 in March, 1924, and 159 in April, 1923.
Bank credit for business and industrial enter
prises of the district has continued abundant.
Member banks were able during April and
early May to increase their total loans and
investments while reducing their borrowings
from the Federal Reserve Bank. Earning assets
of the latter, which indicate the amount of Re

FEDERAL RESERVE AGENT AT SAN FRANCISCO

serve Bank credit in use in the district, have
remained near the lowest levels of recent years.
Interest rates, already low, tended downward
during the month.
The outbreak of foot and mouth disease of
livestock in parts of the southern half of Cali
fornia, which threatened serious injury to the
livestock and allied industries of that state, is
slowly being brought under control. Upon in
vitation of state authorities the Federal Gov
ernment has assumed complete charge of eradi
cation work, and has standardized eradication
and quarantine measures. Modification of
intra-state quarantines has been permitted
wherever it has been possible to do so without
reducing the effectiveness of established meth
ods for controlling the disease. It is anticipated
that embargoes of other states against Cali
fornia products which authorities of the Fed
eral Government certify as safe for shipment
will soon be lifted.
Agriculture

Spring agricultural operations have pro
ceeded under moderately favorable weather
conditions over a large part of the district.
Seasonal rainfall was generally less than nor
mal during April, but, except in parts of Cali
fornia where a condition of semi-drought had
previously existed, little injury to growing
crops was reported. Killing frosts during the
latter part of April and early May did consid
erable damage to deciduous fruit and berry
crops in the Pacific Northwest, but the exact
extent of the losses is as yet indeterminate.
Figures for the important winter wheat crop
(A) M ovement o f Crops to Market*
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
1923-1924
Season to
W heat E xportsf
A p r. 30,1924
Portland and Puget
Sound ......... (bu.) 28,202,734
(19.7)
Barley E xportsf
San Francisco (bu.) 9,655,825
(20.8)
Apple Shipm ents!
T welfth Dis. (cars)
56,487
(97.7)
Orange Shipments^
California , , (cars)
22,435
(40.7)
Lemon Shipments^
California ....(cars)
4,947
(38.8)

1922-1923
Season to
A p r. 30,1923

1921-1922
Season to
A p r. 30,1922

17,767,948
(18.1)

36,932,447
(29.2)

15,340,483
(35.7)

16,177,402
(41.1)

40,562
(90.5)

50,287
(98.3)

25,416
(51.5)

18,642
(60.4)

3,479
(35.5)

4,065
(39.0)

•Figure« in parentheses indicate percentage of crop,
t Season begins Ju ly 1st
¿Season begin« November 1st.
C O R R E C T IO N S : Apple shipments reported in A p ril Review
should have been 55,271 (9 5 .7 % ) instead of 5,527. Orange
and lemon shipments to March 31, 1922, should have been
15,250 (4 9 .4 % ) and 3,118 (2 8 .9 % ), respectively, instead of
19,113 and 3,120, respectively.

MONTHLY REVIEW OF BUSINESS CONDITIONS

showing acreage sown during the autumn of
1923, percentage of acreage abandoned since
planting, and condition of the crop on May 1st
are now available. They are presented below,
together with comparable data for previous
years.
Condition M ay 1st
PerCent
(Per Cent of N o rm «])
10
Year
1924 1923 Average

California _____ 64
Idaho ................. 91
Oregon ............. 9 6
Utah .................... 93
W ashington ..... 83

88
92
95
90
88

84
94
95
94
90

Twelfth D istrict...........................
United S ta te s. . . 84.8 80.1 86.3

Acreage* Abandoned
Sown
by
Autumn
M ay 1st
1923
1924
1923

691
381
896
152
1,559
3,679
39,933

S4.0
4.0
1.0
2.0
18.0
18.9
7.6

8.0
4.0
3.0
2.5
5.0
5.0
14.3

*000 omitted.

The poor condition of the grain in Califor
nia, due to deficient rainfall in that state, has
caused many growers to pasture their fields or
to plan to use their product for hay only.
Unsatisfactory moisture conditions which
have limited the acreage and lowered the con
dition of field crops in California have also
affected unfavorably the deciduous fruit crops
of that state. This fact, as well as the losses due
to frost injury in some fruit growing areas, is
reflected in figures of the condition of the prin
cipal deciduous fruit crops of California pre
sented below.
Condition M ay 1st
(Per Cent of Normal)
1924 1923 1922

Almonds ........... ..61
Apples .................90
Apricots ..............66
Cherries ..............65
Peaches ............ ..77
Pears ....................70
Plums ..................78
Prunes .................68

75
80
98
73
87
90
95
60

Final Estimated Yield
1923
1922
(tons)
(tons)

70
11,000
8,500
96 5,196,000f 4,197,000f
52
170,000
145,000
90
14,500
14,000
92
380,000
410,000
92
128,000
150,000
*
69,000
48,000
95
80,000
110,000

*Not available.
fCommercial crop in boxes— total crop 1923, 8,450,000 boxes; 1922,
7,850,000 boxes.

California citrus fruit yields for the 19231924 and 1922-1923 seasons (November 1st to
October 31st) are estimated as follows:
Crop Year

r ----------------------Orange«
Total
Navels
(boxes)
(boxes)

>
Valencias
(boxes)

Lemons
(boxes)

1923-1924... 22,000,000 11,000,000 11,000,000 5,100,000
1922-1923... 19,955,000 9,676,000 10,279,000 3,920,000

The estimated condition of all oranges was
95 per cent of normal and of lemons 88 per cent
of normal on May 1, 1924, compared with 97
per cent and 90 per cent, respectively, on May
1, 1923. Harvesting and shipping of Navel
oranges had been practically completed by
May 15th.
Both canned and dried fruit markets contin
ued seasonally active during April and early
May, and further substantial reduction of un
sold stocks in first hands was reported.

M ay, 1924

An approximate measure of progress made
up to April 30th in marketing wheat, barley,
apples, and citrus fruits grown in this district
during the past crop year is given in table “A.”
Cold storage holdings of boxed apples in the
United States, the majority of which apples are
produced in the Twelfth District, were about
twice as large on May 1, 1924, as on May 1,
1923, an indication that not all of the fruit
shipped from the district during the past
season has actually entered into consumption.
Livestock— Animal Products

Apart from the unusual situation in Califor
nia, where foot and mouth disease of livestock,
although apparently under control, is still pres
ent, the livestock industry has continued in
satisfactory condition. Valley grazing and pas
ture lands in many sections have suffered from
a lack of rainfall, but as feed becomes scanty
livestock are being moved to mountain feed
ing grounds.
Physical conditions during last winter favor
able to the livestock industry are reflected in
the annual May 1st report on mortality of live
stock during the preceding twelve months.
Losses of all classes of livestock due to disease
and exposure during the year ending May 1,
1924, were generally the same as, or slightly
smaller than during the year ending May 1,
1923, a year of small losses in the industry.
M O R T A L I T Y O F L IV E S T O C K *
Cattle
Hogs
Sheep
Lambs
Year Ended Year Ended Year Ended Year Ended
A pril 30,
A pril 30,
A pril 30.
A pril 30,
1924 1923 1924 1923 1924 1923 1924 1923
50
22
50
16
55
Arizona ^ ........ .. .. 50
t
t
30
25
40
44
37
100
37
21
20
20
26
25
35
40
35
20
40
45
165
70
75
22
14
Oregon ........... . .
t
40
t
27
t
t
43
16
20
43
48
60
70
Utah ............... . . 41
33
11
20
20
41
38
50
Washington . . . . 20
United States . . . 30.5 29.4 52.9 50.5 37.5 46.3 50.2 49.7
• Num berof deaths per 1,000 head due to disease and exposure.
fN o t available.

Increased losses in California may be attrib
uted partly to abnormal conditions accompany
ing the outbreak of foot and mouth disease in
that state, and in the case of sheep to the short
age of feed, particularly at lambing time.
Shearing of wool has proceeded steadily dur
ing recent weeks, and nearly half of the dis
trict's 1924 clip, which commercial estimates
place at 78,500,000 pounds, had been shorn by
May 15th. Lambing was completed satisfac
torily during April and early May in practi
cally all sheep raising sections of the district.
Losses (except in California) have generally
been less than last year.
Total receipts of all classes of livestock at
eight principal markets of the district during
April are shown in the accompanying table and
chart. Divergencies from what appear to be

M ay, 1924

normal trends reflect almost entirely condi
tions prevailing in California markets as a re
sult of the presence of foot and mouth disease
in that state.
L IV E S T O C K R E C E IP T S A T E I G H T M A R K E T S
Cattle Calve*
Hogs

April, 1924....
March, 1924...
April, 1923.........
4-year average—
April
4-year average—
March ..............

FEDERAL RESERVE AGENT AT SAN FRANCISCO

64,086 15,348 184,021
88,107 20,451 249,433
65,824 17,269 178,937

204,675
169,200
214,977

64,144 14,353

141,766

214,808

71,559 14,674

171,084

188,733

lambs at about the same figures as were quoted
one year ago. Prices offered growers for wool
during April, at 33 to 43 cents per pound (qual
ity and cost of transportation to terminal mar
kets considered), were slightly lower than
during March, and were from 4 to 7 cents per
pound below prices offered a year ago. Wool
buyers in the field were not active during the
month, and the volume of reported sales and
contracts made thus far during the present
season has been smaller than was reported
during the same period last year.
Foot and Month Disease

TH O U SAN D S
500

400

300

200

IO O

Receipts of Livestock at Eight of the Principal Market« of the District
1923-1924. (L o s Angeles, Ogden, Portland, Salt Lake City» San
Francisco, Seattle, Spokane, and Tacoma included)

Steady progress toward effective control of
the outbreak of foot and mouth disease in
parts of California has been made during the
past month. On April 22nd the Federal Gov
ernment, upon invitation of the State of Cali
fornia, took full charge of eradication work,
using the combined forces of the Federal Bu
reau of Animal Industry and of the California
State Department of Agriculture in applying
and enforcing control measures. Intra-state
embargoes on agricultural products other than
livestock and livestock derivatives have been
removed, and the extent of the area under
quarantine has been reduced, allowing the
greatest possible freedom of trade compatible
with effective quarantine of actually infected
areas. Close quarantine of Tuolumne County
and parts of the following counties was being
maintained on May 16th:
Alameda

Mariposa

San Francisco

Supplies of fresh butter reaching markets in
Contra Costa
Merced
San Joaquin
this district during April were heavy, a normal
Fresno
Napa
Solano
Kern
Orange
Stanislaus
seasonal condition accompanying the sharp up
Los Angeles
San Bernardino Tulare
ward trend of production during the spring,
Madera
and greatly exceeded current demand. Much
of the surplus butter was placed in cold stor
Losses of livestock up to and including May
age, the volume of cold storage holdings of 6, 1924, have been estimated as follows:
butter being more than eight times as large on
Total
Number per
Number
May 1st as on April 1, 1924, and three times as
1000 H ead in State
36,101
17.3
large as on May 1, 1923. E gg production also Cattle ..................................
22,362
9.1
expanded rapidly during the month, and the Sheep ..........................
18,179
22.0
seasonal increase in production was accom Swine ................................
.................. ,
417
panied by a rapid accumulation of cold storage Goats . . . .
stocks. A summary of cold storage holdings
The appraised value of animals slaughtered
of butter and eggs in the chief markets of the up to May 6th was approximately $2,962,000.
Twelfth District and the United States is pre
Embargoes placed by other states upon ship
sented in the following table:
ments of California products into or through
F ive-Year
their territory have not been modified to any
M ay 1,
A p r. 1,
M ay 1,
Average
Butter (pounds)
1924
1924
M ay 1st
1923
considerable degree, but the United States De
224,163
817,736
•Twelfth D is tric t... 1,859,787
532,956
partment of Agriculture is authority for the
6.401.000
United States............ 8,977,000 7,842,000 3.248.000
statement that such modification may be ex
Eggs (cases)
t T welfth
109,816
D is tr ic t... 295,811
314,697
t
pected
prior to the summer season of heaviest
579,000 3.737.000
3.741.000
United States ..........3,609,000
shipment of such products. Disposal of the
•Four markets, f S ix markets. ¿Figures not available.
spring lamb crop, a problem which had caused
Prices for meat animals at the chief markets considerable concern, has been accomplished
of the district tended to decline during April. without undue disorganization of markets. A
Beef cattle sold at higher, hogs at lower, and large number of lambs, which would ordinarily

M ay, 1924

MONTHLY REVIEW OF BUSINESS CONDITIONS

have been shipped to eastern markets alive,
were slaughtered in California under Federal
inspection and the dressed carcasses sent East.
Prices

Relative stability of the average price level
for the more important agricultural products of
the district during April was the result of ap
proximate balance between advances and de
clines in prices of individual commodities. The
average level on May 1, 1924, was slightly
higher than one year ago. The downward
movement of quotations for all classes of meat
animals at Chicago markets during April re
sulted in a net decline of prices for beef cattle,
hogs, sheep, and lambs, but quotations at the
end of the month were, except in the case of
hogs and sheep, higher than one year ago.
Grain prices moved upward during the month,
May wheat at Chicago advancing 3 cents per
bushel, spot shipping barley at San Francisco
10 cents per cental, and cleaned California rice
at the same market 5 cents per 100 pounds.
Quotations on May 2, 1924, were approxi

mately 11.8 per cent lower for wheat and 13.8
per cent and 22.1 per cent higher for barley and
rice, respectively, than on May 4, 1923. The
price of cotton rose fractionally during April.
On May 2, 1924, spot middling uplands cotton
INDEX NUMBERS

_____
Wholesale Prices and the Cost of Living, 1920-1924
United States Bureau of Labor Index of Wholesale Prices (1913=100)
National Industrial Conference Board Index of the Cost of Living (July 1914=100)

(B) Commodity Price»—
Commodity

Unit

M *y 2,1924

T w enty Basic Commodities (F. R. B. of N. Y .) 1913=100.
146.3
148.0
W holesale Prices (U. S. Bureau of Labor) 1 9 1 3 = 1 0 0 . . . .
Cost of Living (National Industrial Conference Board)
161.8
July, 1914=100
$ 9.65
Cattle (N ative B e e f).. .W eekly Average Price at Chicago. 100 lbs.
7.50*
100 lbs.
Sheep ................. ........ .W eekly Average Price at Chicago.
15.85
,. .W eekly Average Price at Chicago. 100 lbs.
Lambs
7.30
. . . . . . .Weekly Average Price at Chicago. 100 lbs.
H ogs
1.04#-1.0554
W heat .................Chicago Contract Price for May W heat. bu.
cental
1.80-1.90
.Shipping Barley f. o. b. San Francisco.
Barley
5.25
Rice ..................... .California Fancy Japan at San Francisco, cental
Cotton ... ......... .Middling Uplands—W eekly range of spot
quotations at......
N ew lb.
O rlea n s..29.75-30.88tf
80.61*
W o o l .................. .Average of 98 quotations at B oston ........ lb.
Flour ...... ....... .First Grade Family Patent f. o. b. Cali
7.14
fornia mills . . . . ---------- . . . . „ . . ..... ..... bbl.
,B eet Granulated f. o. b. San Francisco. . lb.
8.20*
Sugar
Oranges .......... .Navels, Fancy—W holesale at San Fran
3.50-5.50
cisco . . ____ _____ _ _________
„_____ box
2.50-3.50
Lemons . . ___ .Choice—W holesale at San Francisco...... box
Dried A pples........Choice in 50-lb. boxes f. o. b. California., lb.
.1 2 #
•13-.14
Dried A p ricots....Choice in 25-lb. boxes f. o. b. California., lb.
.Size 40/50 in 25-lb. boxes f. o. b. Calif........ lb.
.lO ^ -.lO #
Prunes — ....
Raisins .. .. , ,.Loose Muscatel in 25-lb. bxs. f. o. b. Calif. ib.
.08 54
Canned A pricots. Choice 2lA s f. o. b. California--------- ------ doz.
2.75
Canned Peaches...Cling, Choice, 254s f. o. b. C alifornia.___ doz.
2.30
Canned P e a r s . . . . ,Bartlett, Standard 254 s f. o. b. California. doz.
2.75
100 lbs.
2.72
Raw M ilk............. .Pacific Coast—April average. „ .............
.38
Butter .................. .93 Score at San F ra n cisco ....... ....... ......... lb.
doz.
.26
E ggs .................... , Extras—San Francisco....... ....................
.Electrolytic; N ew York Spot. ................ lb.
Copper ..........
.1354
.N ew York S p o t............................................. lb.
7.875*
Lead ..............
.6 4 #
S ilv e r .................... .N ew York F o r e ig n ............... ........................ oz.
.East St. Louis S p ot______ ___ __________ lb.
5.80-5.85*
.California 35° and above........ ................... . bbl.
Petroleum ....
1.40
17.50
D ouglas F ir......... .2x4, 16 ft. N o. S1S1E f. o. b. Seattle.......... M ft.
D ouglas F ir......... . 12x12 Timbers f. o. b. Seattle........ .............. M ft.
21.00
"Prices fo r shorn sheep.

One Month Ago

One Year Ago

150.9
150.0

157.4
159.0

163.2
159.1
$ 9.75
$ 9.05
10.25
8.35
16.00
13.75
7.50
8.00
1.01*6-1.02# 1.17^ -1.19^
1.75-1.80
1.60-1.65
5.20
4.30
27.50-30.00*
82.47*
7.11
8.50*
3.50-5.50
2.00-3.00
■1354
.1354-.1454
.1054-.11
.08*4
2.60
2.30
2.75
2.80
.40
.26
.1 3 #
8.75*
.6354
6.30-6.35*
1.40
17.50
21.00

27.00-28.25*
83.49*
7.97
9.90*
3.00-5.25
3.75-5.00
.075Í-.0754
.1454
.1 0 # - .l l
.10
3.30
2.75
2.75
2.75
.4354
.32
.1 6 #
7.75*
.6 7 #
7.00-7.05*
1.04
23.50
26.50

May, 1924

FEDERAL RESERVE AGENT AT SAN FRANCISCO

on the New Orleans market sold at an advance year average for May 1st (2,094,736 bushels).
Figures of output and stocks for 16 milling
of approximately 9.8 per cent over the quoted
price on May 4, 1923. The trend of wool prices companies for which a continuous record is
was downward, the average of 98 quotations at kept are given in the following table:
Five* Year
Boston declining nearly two cents during the
Average
(1920-1924)
month, and reaching a level 3.4 per cent below
A p r., 1924 Mar., 1924 A pr., 1923
A pril
that of a year ago. Sugar prices on the San O utput ...........(bbls.) 411,405 512,639 396,348 396,037f
Stocks*
Francisco market declined rapidly during the
Flour .......... (bbls.)
492,486
476,362
541,303
526,831
W heat ...........(bu.) 2,307,082 3,448,892 2,243,886 2,094,736
first weeks of May, and granulated beet sugar
is now (May 20th) selling at $7.60 per 100 *As of the first day of the following month,
average.
pounds, compared with $8.50 per 100 pounds Nt Four-year
O T E : O utput of 16 reporting mills during M arch, 1924, the
latest month for which complete comparative data are avail
on April 4, 1924, and $9.90 per 100 pounds on
able, represented approxim ately 60.9 per cent of the total pro
May 20, 1923. Dried fruit quotations have
duction of all mills in the district producing 5,000 or more
barrels
of flour annually (as reported to the B ureau of the
tended downward during the past month, while
C ensus).
canned fruit prices have remained firm, with
small advances for some varieties reported. M I L L I O N S O F B U S H E L S
5
Prices for both canned and dried fruits con
tinued below the levels of a year ago. Prevail
V
/s_
ing quotations for dairy and poultry products
rocKS o EWHEAT
■
were lower than in April, 1923, following
>
seasonal declines from March levels.
Price movements in the non-ferrous metals
group (excepting silver) were generally down
ward during April. (A more detailed discus
sion of metals prices is given in the paragraph
TH O U SA N D S OF B A R R E L S
on “ Mining.” ) Petroleum prices in California 900
oil fields continued the sidewise movement
44
/'a V
noted during the past two months, and are
\
»«J5T2:ksoff JOWf
now 34.6 per cent higher than at this time last 500
year. The general downward tendency of lum
PUTO'FPLOUR
ber prices evidenced during recent months in
OUIV
Pacific Northwestern producing centers ap I O O
i-- -n
pears to have terminated, at least temporarily,
during April at levels from 20.0 to 25.0 per
1924
1923
cent below those of April, 1923.
Monthly Flour Output, and Stock* of Wheat and Floor at End of Month

N /
AJ

■

of 16 Reporting M illing Companies

Milling
Flour production in this district during April
continued at slightly higher levels than one
year ago, reported output of 16 large milling
companies at 411,405 barrels being 3.8 per cent
larger than production during April, 1923. Out
put of the same mills declined 19.7 per cent
during April as compared with March, but as
similar declines have been reported for April
in previous years, this decrease probably was
largely seasonal. Although millers reduced
their output during the month, the volume of
production was slightly greater than sales and
stocks of flour held by mills increased. On
May 1, 1924, total reported stocks of flour, at
492,486 barrels, were 3.4 per cent greater than
on April 1, 1924, 9.0 per cent smaller than on
May 1, 1923, and 6.5 per cent smaller than the
five-year (1920-1924) average of 526,831 barrels
for that date. Millers' stocks of wheat were
reduced by 33.1 per cent during April, and
stood at 2,307,082 bushels on May 1, 1924, at
which figure they were little larger than one
year ago, but 10.1 per cent larger than the five

Moderate activity in domestic flour markets
was reported during April, but foreign demand
continued sluggish. Prices for flour have
strengthened slightly during the past month.
Lumber
A seasonal increase in output, which was
nevertheless at levels below those of a year
ago, a small reduction in the volume of ship
ments and orders, and a slight accumulation
of stocks at mills were outstanding develop
ments in the lumber industry of this district
during April. Since the recovery of the indus
try from the depression of 1920-1921 monthly
production of lumber has been growing pro
gressively larger, due allowance being made
for seasonal variations, but in April, 1924, for
the first time in two and one-half years, the
total output of reporting mills was less than
in the corresponding month of the previous
year, the cut being 3.3 per cent less than the
cut for April, 1923. Although declining from
the March figures, both shipments and new
orders received by the mills were at high levels

MONTHLY REVIEW OF BUSINESS CONDITIONS

M ay, 1924

The reported volume of sales of copper, lead,
and zinc during April was slightly smaller than
in March, reflecting a continuance of the gen
eral downward trend of activity in non-ferrous
metals markets noted during the last weeks of
A p r., 1924 M ar.. 1924 A pr.. 1923 Mar.. 1923
the earlier month. Contraction of both foreign
(board feet) (board feet) (board feet) (board feet)
Production ... , 627,838 606,686 649,400 573,471 and domestic demand during the month in the
Shipments ........... ..618,267 620,201 619,512 659,718 face of an apparently unchanged production
Orders ......... ......... ..530,011 580,829 580,014 601,543 induced price declines for copper, lead, and
Unfilled Orders. , 455,846 529,699 628,419 637,694 zinc, and monthly average prices of these
metals for April, 1924, were lower than aver
M IL L IO N S O F B O A R D F E E T
age prices for March. Copper, quoted at 13
cents per pound on May 20th, was 16.8 per cent
lower in price than on May 20, 1923. Lead
prices, although declining during the past
month, are now (May 20th), at 7.25 cents per
pound, the same as one year ago. The pres
ent (May 20th) quotation of 5.80 cents per
pound for zinc compares with 6.60 cents per
pound paid on May 20, 1923. Silver has met a
stronger demand and prices have moved up
ward during the past month. Present prices
are below those of a year ago, but at that time
the larger part of the domestic output was be
Lumber Production, Orders Received, and Shipments in Twelfth
ing purchased by the Government under the
Federal Reserve District as Reported by Four Lumber
Associations. 1923-1924
Pittman Act, at a fixed price well above the
A slight seasonal increase in domestic de level of world markets. Average prices paid
mand for lumber appeared during April as for the principal non-ferrous metals during
compared with March, but domestic markets April, 1924, and 1923, and March, 1924, are
generally were relatively sluggish. Substan given in the following table:
A pr.. 1924 M ar.. 1924 A pr.. 1923
tial price reductions at the mills at a time when
(lb.)
(cent«)
(cents)
(cents)
consumers’ needs are increasing are reported Copper
New York Electrolytic. . 13.21
13.52
16.66
to have stimulated buying during the first Lead (lb.)
weeks of May. Activity in the export market
N ew Y o r k .................. ,
8.26
9.01
8.10
reported in March subsided somewhat during Silver (oz.)
N ew Y ork..... .................. 64.14
63.96
66.86
April, the estimated volume of new orders re
(lb.)
ceived being approximately 30.0 per cent less Zinc
St. L ou is........ .................. . 6.12
7.20
6.49
than during the earlier month. The volume of Quicksilver (dollars per
new orders placed by foreign buyers was less
flask) San Francisco..,, 72.25
70.74
63.07
by 60 per cent during April, 1924, than during
Petroleum
April, 1923.
during April. As compared with April, 1923,
a month of great activity for the lumber indus
try, they declined only 0.2 per cent and 8.6
per cent, respectively. Figures follow (000
omitted) :

Following six months of declining produc
tion, the daily average output of petroleum at
Production of non-ferrous metals at the California wells increased 0.2 per cent during
mines of this district during April continued April as compared with March. An increase of
at about the same levels as in March accord 2.9 per cent in indicated average daily con
ing to preliminary reports. Figures for na sumption accompanied the increase of produc
tional production of copper, silver, zinc, and tion, and stored stocks at the end of the month
quicksilver during March, 1924, the latest were but 0.7 per cent greater than at its begin
month for which complete data are available, ning. Total flow of oil from new wells opened
February, 1924, and March, 1923, are given in in California has been smaller during the first
the following table :
four months of 1924 than during the corre
Copper (lbs.) (mine M ar.. 1924
Feb.. 1924
M ar.. 1923
sponding period a year ago. On the average
production) . . . . 128,560,000 128,260,000 122,193,969 approximately 112 new wells were opened each
Silver (oz.) (com
month during the period January to April,
mercial bars)...
5,726,600 5,426,776 6,109,841 1924, inclusive, the average initial daily pro
Zinc (tons)
(slab) ...............
47,775
43,933
40,480 duction of all new wells opened being 50,355
barrels of crude oil. During the first four
Quicksilver(flasks—
75 lbs., estimated)
1,165
900
♦
months of 1923 there was an average of only
63 new wells brought in each month, but the
•Not available.
Figures for lead are not available.

M ay, 1924

average initial daily production of new wells
opened during the period was approximately
98,744 barrels. A statistical summary of re
cent developments in the petroleum industry in
California is presented in the following table :
C A L IF O R N IA P E T R O L E U M S IT U A T IO N
Indicated
Average
Average
Daily ,
Daily
Consumption
Production (Shipments)
(barrels)
(barrels)

April,
M ar,
Sept.,
April,

FEDERAL RESERVE AGENT AT SAN FRANCISCO

1924.
1924 .
1923*
1923 .

643,328
642,363
858,750
689,865

621,030
603,453
779,657
611,736

Stored
Stocks at
End of
Month
(barrels)

97,335,651
96,666,719
85,496,609
68,937,459

New Wells —>
Daily
Produc*
Number
tion
Opened (barrels)

97 37,937
131 62,771
93 139,960
60 117,589

*Peak of production.

Production of gasolene at California refin
eries during March, 1924, at 112,234,823 gal
lons, was 5.8 per cent greater than during the
preceding month, and 7.5 per cent greater than
during March, 1923. The advance in indicated
consumption from 83,271,000 gallons during
M IL L IO N S

Electric Energy
Total sales of electric energy for industrial
purposes in this district during March were 8.8
per cent greater than during February and 29.9
per cent greater than during March, 1923. The
large percentage increase for the year period
may be accepted as an indication of industrial
growth in the district, although it undoubtedly
reflects also a considerable expansion in the
use of electricity by industries formerly using
other types of power.
All industries for which segregated figures
are available consumed more power during
March, 1924, than during March, 1923, and
substantial increases in the volume of sales to
agriculture and manufacturing were reported
during March as compared with February.
Sales to the mining industry declined slightly
during the month. Percentage comparisons of
sales by certain industries and by sections of
the district are presented in the following
table:
Percentage Increase or Decrease (— ) March, 1924, compared
with March, 1923
Total
Manu Industrial
Agricul
Mining facturing Sales
ture

California _____
233.6
21.3
Pacific N orth w est___
60.2
8.6
Intermountain States... 65.4 — 17.5
Twelfth D is t r ic t ....... 217.7
8.7

16.0
39.7
12.0
23.4

36.0
18.0
22.4
29.9

Figures showing the number of industrial
consumers and the volume of industrial sales
of reporting companies during March, 1924,
and 1923, follow:
Number ot
Industrial Consumers
M ar.,
M ar.,
1924
1923
California ................. 78,136 52,592
Pacific Northwest . . 12,836 11,666
Intermountain States 5,127
4,953
Twelfth District . . . . 96,099 69,211

Industrial Sales K . W . H .
M ar.,
M ar.,
1924
1923
246,216,751 220,220,511
75,633,408
71,721,734
55,058,741
54,388,412
376,908,900 346,330,657

Employment

Production, Shipments, and Stored Stocks of Petroleum, and Refinery
Stored Stocks of Gasolene, 1923-1924

February to 90,161,148 gallons during March
was insufficient to offset the greater increase in
production during the later month, and stored
stocks of gasolene increased 9.9 per cent to
246,170,979 gallons on March 31, 1924, a figure
80.1 per cent greater than that reported on
March 31, 1923* Output and stocks of gasolene
at California refineries for March and Febru
ary, 1924, and 1923, are given in the following
table:
M ar., 1924
Feb., 1924 M ar., 1923
Feb., 1923
(callons)
(pUlons)
( gallon*)
(ralions)
Refinery Output . 112,234,823 106,086,405 104,402,122 92,852,538
Stored Stocks* . . 246,170,979 224,097,304 136,684,477 120,680,550
•As of the U st day of the month.

Non-statistical evidence indicates that there
was a slight increase in unemployment, par
ticularly of unskilled labor, in this district dur
ing April, 1924, as compared with April, 1923,
the result of a general decrease in both indus
trial and agricultural demand for labor. There
is some evidence, however, that the increased
volume of unemployment in many lines of in
dustry was due largely to an influx of laborers
from states outside the district during recent
months. Retarded development of seasonal
agricultural operations in California, generally
unsettled conditions accompanying the out
break of foot and mouth disease in that state,
restricted logging operations, and a tendency
to curtail extra shift production programs in
the lumber industry of the Pacific Northwest
and California, and a reported slackening of
activity in metal mining industries, all tended
to curtail employment during the past month.

Autom obile R egistrations

Sales of new automobiles (as indicated by
registrations of new cars) in all reporting
states of the district except California were
larger during the first quarter of 1924 than
during the first quarter of 1923. Registrations
of new passenger cars and new commercial
vehicles in California during the first quarter
of 1924 were smaller by 8.0 per cent and 21.7
per cent, respectively, than during the first
quarter of 1923. In the district as a whole, the
number of new car sales during the first three
months of 1924 was approximately the same as
the number of new car sales during the first
three months of 1923, an increase of 0.7 per
cent in sales of new passenger cars being offset
by a decline of 7.0 per cent in sales of new com
mercial vehicles. Figures follow:
Total
New Passenger
Cars Registered
Jan. 1 to A p r. 1,
1923
1924
------

Arizona
California
Idaho .......
Oregon
Utah
W ashington

2,472
47,145
2,369
9,203
2,474
*

Total (5 States) 63,663

Total
New Commercial
Cars Registered
Jan. 1 to A pr. 1,
1924
1923

2,026
51,273
1,321
7,106
1,451
8,739

291
3,975
242
630
131
*

136
5,078
116
197f
141
1,092

63,177

5,269

5,668

1924. Figures showing national automobile
production during April, 1924, March, 1924,
and April, 1923, follow:
Apr., 1924

Passenger C a r s ........... 336,968
Trucks ....
34,977
Total

1,799,199

37,712
861,590
42,158
122,979*
42,029
169,419
1,275,887

24.7
30.4
99.5
128.7
34.7
21.9
41.0

•Revised figure.

Motor vehicle output in the United States
declined approximately 2.5 per cent during
April, 1924, as compared with March, 1924,
and was 2.3 per cent less than during April,
1923. This decrease as compared with a year
ago compares with gains of more than 30 per
cent over corresponding months of 1923 re
ported during January and February of this
year when manufacturers increased their pro
duction substantially in anticipation of spring
demand, and of 7.8 per cent during March,

381,348

380,579

3 0

28
i
1
1

2 6

1
f1

Total registrations of old and new automo
biles in this district during the first four
months of 1924 were 40.9 per cent greater than
registrations during the first four months of
1923. Detailed figures by states of this district
(figures for Nevada are not available) follow:

Arizona .
......
47,019
California ......
1,123,526
Idaho .....
84,107
Oregon ........... .....
281,271
Utah .................
56,637
W ashington . „
. 206,639

343,793
36,786

M IL L IO N S O F D O L L A R S
3 2

2 0

Percentage
Increase
1924 over 1923

371,945

A pr., 1923

348,287
33,061

Comparisons of retail trade conditions dur
ing the individual months of March and April,
1924, and March and April, 1923, show changes
at variance with normal seasonal and annual
movements, and lead to the conclusion that
the difference in Easter dates in the two years,
rather than underlying trade conditions, was
responsible for the changes noted. In order to
obtain a more accurate view of the situation
than can be had by comparing figures for single
months, combined totals for March and April

January 1 to M ay 1.
1924
1923

Mar., 1924

Retail Trade

•N o t available,
tja n u a ry 1st to M arch 1st.

Total ...............

May, 1924

MONTHLY REVIEW OF BUSINESS CONDITIONS

1
I
I
I
1

18
16
14
12

1924
V
\ / 7
V
/

A
•"

\ 19

2 3

/ S .
N

IO
n —

r—

r r r ~ .

______ —— -—
1 ^ r r r ^ z i

Net Sales of 31 Department Stores in Twelfth Federal Reserve District
(In Million* of Dollar*)

of the two years are here considered. The
value of total sales of 35 reporting stores was
6.1 per cent larger during March and April of
this year than during March and April a year
ago, all cities reporting increases except Spo
kane and Salt Lake City, both of which re
ported decreases of nearly 9.0 per cent. Aver
age stocks during March and April, 1924, as
compared with average stocks during March
and April, 1923, were greater by 10.6 per cent,
all cities reporting increases except Salt Lake
City, where a decrease of 1.8 per cent occurred.
The following table compares the value of
sales and stocks of reporting department stores
in the principal cities of this district during
April and March of 1924 with the value of their

May, 1924

FEDERAL RESERVE AGENT AT SAN FRANCISCO

sales and stocks during the same two months
of 1923, and the value of sales during the first
four months of 1924 with the value of sales
during the same period of 1923:
Percentage increase
or decrease ( — ) in
value of sales
M ar.- Jan. 1A pr., A pr. 30,
1924
1924
compared with
M a r.Jan. 1No.
A pr.,
A pr. 30,
of
1923
Stores
1923

Percentage
increase
or decrease(— )in
value of stocks
M ar.-A pr., 1924,
compared with
M ar.-A pr.,
1923

19.0
6.2
3.4
10
5.6
1.4
.07
5
6.0
5 — 8.7 — 2.7
4 — 8.9
0.7

Los A n geles__
Oakland —
San Francisco..
Seattle .
Spokane — .
Salt Lake City.

26.3
5.9

12.8

District*

.35

10.1

6.1

—

1.8

10.6

•Figures for one store included in district figures but not included
in figures for cities shown above.

Wholesale Trade
The wholesale trade situation in the district,
which during March was characterized as ir
regular, changed little during April, according
to reports received by this bank from approxi
mately 200 firms in 11 lines of business. As
APRIL PRICES 1923=10036- APRIL
U.S.BUKAU OF LABOR M KX
MO. WHOLESALE HttCES

2Ä

APRIL ] 19

a g r ic u l t u r a l im plements

AUTÛM0BU SUPPLES
AUTOMOBILE TIRES

" ”

in the physical volume of trade was not so
great as indicated above by figures of value of
sales.
As compared with March, 1924, six of the
eleven lines reported decreases in the value of
their sales during April, 1924.
Percentage increases or decreases (—) in the
value of April sales of all reporting firms in
each line of business, compared with the value
of sales during April, 1923, and March, 1924,
are presented in the following table:
Numb er A p r., 1924. comp ared with
of Firms A p r., 1923
M ar., 1924

1.1

9.1
3.1

DRUGS
DRY GOODS

Agricultural Im plem ents.
Automobile Supplies.,
Automobile T ir e s ...........
Drugs . u ................................
Dry Goods
Electrical Supplies.,
Furniture ..........................
Groceries
Hardware
Shoes __
Stationery

22
17
20
9
15
7
17
27
21
15
27

A decline in the volume of building in this
district is forecast by figures on building per
mits issued in 20 principal cities during April,
1924. As compared with the previous month
there was a decline of 8.7 per cent in the num
ber of permits issued, and the declared value of
such permits was less by 12.2 per cent. The
number of permits issued during April, 1924,
was 2.2 per cent less than the number issued
during April, 1923, and the value of permits
Building Permits —
A pril, 1924
Value
N o.

Berkeley ....
Boise
Fresno
L ong Beach.

compared with sales of April, 1923, the figures
for April, 1924, showed decreases in value in
seven lines and increases in four lines, as fol
lows :
Dry Goods —
Shoes ___

— 11.5%
— 11.2
H a r d w a r e ------ — 10.2
Auto T ires___ — 9.8
Groceries
— 9.8
Stationery ___ — 9.1
A uto Supplies. — 6.7

Drugs ....... .. +19.6%
Electrical Equip
ment ............. + 8 . 6
Agricultural Im
plements ...... + 5.9
Furniture ____ + 1.3

Inasmuch as general wholesale prices during
April, 1924, were 7.4 per cent lower than dur
ing April, 1923, it is probable that the decline

— 7.9
— 1.2
2.6
1.0
— 10.4
4.9
.09
2.8
— 6.5
— 9.9
— 11.6

Building Activity

(C )

Dollar Value of Sales of Representative Wholesale Firms and General
Wholesale Prices in April, 1924, compared with A pril, 1923

5.9
— 6.7
— 9.8
19.6
— 11.5
8.6
1.3
— 9.8
— 10.2
— 11.2
— 9.1

Los Angeles.
Oakland .
Ogden
Pasadena ___
Phoenix

Portland
Reno ..............
Sacramento , ,

Salt Lake City
San D iego

San Francisco.
San Jose...... .
Seattle ...
Spokane .....
Stockton ---Tacoma ........

225 $ 702,535
34,328
77
172,386
123
422
865,470
13,224,568
4,544
2,457*592
1,136
372,500
31
1,290,159
310
161,897
77
1,432
2,519,275
18
25,850
336
849,290
210
566,355
482
1,567,734
1,045
5,719,856
87
152,195
1,005
2,329,805
261
688,396
113
309,950
448
546,225

No.

A pril, 1923
Value

173 $ 525,925
132
40,052
152
492,543
504
2,260,272
5,094
15,352,944
859
2,135,488
62
185,800
285
968,526
64
135,200
1,357
2,523,330
20
32,720
301
699,047
570,028
200
409
846,480
5,173,801
954
332,810
107
2,141,385
1,105
318,685
346
407,600
129
280,703
408

District ---- 12,382 $34,556,366 12,661 $35,423,339

M ay, 1924

MONTHLY REVIEW OF BUSINESS CONDITIONS

issued was less by 2.4 per cent. Inasmuch as
building materials prices have declined by
more than 2.4 per cent since April, 1923, how
ever, it is probable that the physical volume of
building proposed during April, 1924, was
greater than during April, 1923.
Percentage Decrease in the Number and Value of Building Permits
Issued in 20 Cities
Apr.» 1924, compered with
A pr.. 1923
Mar., 1924

Number of Permits Issu ed ....
Value of Permits Issu e d .. , „

—2.2
, —2.4

— 8.7
—12.2

ures in the states of this district during April,
1924, and March, 1924, follow:
N o.

Arizona ___
California .......
Idaho ..............
Nevada
Oregon ...
Utah ..............
W ashington ...

District ........

1
96
24
0
33
12
31
197

A pril, 1924
Liabilities

March, 1924
N o.
Liabilities

114,570
710,780
148,814
0
249,320
369,626
556,803

1 $
4,329
103
985,091
71,572
6
0
0
199,443
27
14
275,300
750,024
40

$2,149,913

191 $2,285,759

60
LIA B ILITIE S ( 0 0 0 - -O M IT T E D )
5 0 0 0 , ----------------------

NO.OF FAILUR ES
-------------------------- 15 0 0

AMOt NT OF PERMITS IN
MI LI .IONS OF D 5LLARS

2 0
NUME
IN TH

-IITS

2000

200

IOOO

too
50

500

11 i i i 11i i i 111" i i IT i 7 i 111 i i 11■ i i i
1923
1924
Building Permits Issued in 20 Principal Cities, Twelfth Federal
Reserve District, 1923*1924

The United States Department of Labor in
dex number of building materials prices stood
at 182 in April, 1924 (1913 prices=100). The
figure was unchanged as compared with the
past two months, and 10.8 per cent less than a
year ago (1923 peak). The Aberthaw index
number of the total cost of constructing a rein
forced concrete factory building stood at 200
on May 1, 1924 (100 in 1915), compared with
202 on April 1, 1924, and 204 on May 1, 1923.
The latest figure is 3.4 per cent below the re
cent peak (207) reached June 1, 1923.
Business Failures
The number of business failures in the dis
trict during April, 1924, was 32.2 per cent
greater than during April, 1923, but liabilities
involved were less by 15.3 per cent than in the
earlier month. Compared with March, 1924,
there was a slight increase in the number of
business failures, but a decrease in the liabili
ties of failing concerns.
Percentage Increase or Decrease ( — ) in the Number and Liabilities of
Business Failures in the Twelfth Federal Reserve District
A p r., 1924, compared with
A p r., 1923
M ar., 1924

Number of Business F a ilu res..,
32.2
Liabilities of Business Failures. — 15.3

3.1
—5.9

R. G. Dun & Company's preliminary figures
of the number and liabilities of business fail

100

1923

1924-

Business Failures, Twelfth Federal Reserve District, 1923-1924

Bank Debits
The volume of business transacted in this
district during April, 1924, as indicated by
checks drawn against accounts of individuals
at banks (bank debits), declined as compared
with March, 1924, but increased slightly as
compared with April, 1923. Reviewing the first
four months of the year, business activity in
the district appears to have reached a peak
during February, and to have declined in each
of the two following months. The figures for
each month, however, were larger than those
for the corresponding month a year ago.
The presence of special factors affecting busi
ness in California (lack of normal seasonal
rainfall and outbreaks of foot and mouth dis
ease of livestock) makes it desirable to con
sider figures for that state apart from those of
the rest of the district. If this be done it is
found that in the district outside of California
there has been a steady increase in business
activity during the first four months of the
year, the declines in the district figures for
March and April being due solely to declines
in California, where a large proportion of the
business of the district is transacted.
The following table shows bank debits re
ported for 20 cities in the Twelfth District, 9
cities in the Twelfth District outside of Cali
fornia, and 11 cities in California, during the
first four months of 1924 and 1923. Allowance

May, 1924

has been made for seasonal variations in the
figures reported, and also for the extra busi
ness day in February, 1924.
1924

April
March
February
January

Outside
California*
9 Centers

California*
11 Centers

.$2,532,000
2,605,000
2,785,600
... 2,510,400

$560,300
557,500
545,100
528,800

$1,971,700
2,047,500
2,240,500
1,981,600

2,421,200
... 2,526,800
..... 2,401,300
...... 2,359,300

540,500
525,400
515,000
514,600

1,880,700
2,001,400
1,895,300
1,844,700

Twelfth
District*
20 Centers

1923

April ......
March ...
February
January .,.

FEDERAL RESERVE AGENT AT SAN FRANCISCO

*000 omitted.

M IL L IO N S OF D O L L A R S

3000|----------------

Savings Acconnts
Savings deposits in 72 banks in seven princi
pal cities of the district amounted to $1,005,839,000 on April 30th, a figure 0.4 per cent less
than the record total of $1,010,941,000 reported
on March 31st. This decrease interrupts a
steady upward movement of savings deposits
which has been in progress since the early
months of 1922. Declines were shown for all
reporting cities except Portland, but most of
the loss occurred in Los Angeles and San
Francisco. During the year period, April, 1923,
to April, 1924, reported savings deposits in
creased 11.3 per cent, an amount considerably
in excess of the increase which could be attrib
uted to interest accruals alone. Detailed

2800

2600

y 1923""',

2400

2200

\
I
-V -JII

Jh
2000
J ____ L
Debits to Individual Account» in 20 Principal Cities, Twelfth Federal
Reserve District. 1923-1924

1919

1920

1921

1982

1 92 3

1924.

Savings Deposits oi 73 Banks in Seven Cities of Twelfth District
_____
(Base year 1919.)

(D )

Bank Debits *—

Berkeley
Boise . ■
Fresno .......
Long Beach.
L os A n geles.
Oakland
Ogden ----Pasadena
Phoenix ...
Portland
Reno
Sacramento .
Salt Lake City.
San D ie g o ...............
San Francisco. ...
San J o se ....... .........................
Seattle .......
Spokane ..................
Stockton ...........................
Tacoma ........................
Yakima ........................... ....

Five weeks
ending
A pr. 30,1924

15,728
10,014
27,213
47,819
692,573
116,937
19,272
31,311
18,486
153,655
6,550
36,989
58,529
43,161
735,534
18,842
168,116
44,673
21,301
37,136
9,201

T otal ....................................... $2,313,040
*000 omitted.

Five weeks
ending
M ay 2, 1923

16,180
11,330
43,745
54,932
652,127
119,680
30,116
30,845
16,600
152,417
9,010
34,640
59,219
40,718
764,428
22,782
159,296
45,838
22,233
37,186
9,668

$2,332,990

N o te : Four per cent line represent« Savin** Deposits as of January 31. 1919,
with interest accruals at a rate of 4 per cent compounded semi-annually, assuming
no new deposits.

changes in the amount of savings deposits dur
ing the month and year, as reported by the 72
banks, are presented in the following table:

Number
of
*Apr.f
*M ar„
Banks
1924
1924
Los Angeles ... 13 $ 341.228 $ 342,459
Oaklandf ......... 7
93,260
93,588
9
49,841
49,805
Portland ..........
Salt Lake C ity. 8
28,068
28,669
San Francisco t 14
411,418
414,387
Seattle ............. 15
65,114
65,113
Spokane ........... 6
16,910
16,920
Total ............ 72

Per Cent Increase
or Decrease ( — )
A p r.. 1924.
compared with
♦Apr.,
A p r., M ar.,
1923
1923 1924
$302,892 12.6 — .3
84,773 10.0 — .3
44,318 12.4
.07
26,111
7.4 — 2.0 *
373,369 10*1 — .7
56,409 15.4 — .001
15,625
8.2 — .05

$1,005,839 $1,010,941 $903^497 " lL 3 —

*000 omitted.
flncludes one bank in Berkeley which was formerly a branch of an
Oakland bank.
JTh e consolidation of reporting banks has reduced their number
but has not affected the value of reported figures for compara*
tive purposes.

MONTHLY REVIEW OF BUSINESS CONDITIONS

M ay, 1924

1924, an increase due chiefly to advances in
total discounts. Investments changed little
Reporting member banks of this district during the month, increases in holdings of
were able during April to increase their ac United States securities being more than offset
commodations to customers, add to their in by decreases in holdings of acceptances. Total
vestment holdings, and at the same time reduce discounts amounted to $41,000,000 on May 14,
their borrowings from the Reserve Bank, in 1924, an increase of $5,000,000 (13.9 per cent)
dicating that the credit supply of these banks over the figure reported on April 16, 1924, and
is a large one. Total loans and investments a decrease of $25,000,000 (37.9 per cent) from
of reporting member banks continued the the figure reported a year ago. The trend of
seasonal upward movement noted since the total discounts (and of total earning assets),
first of the year, and on May 7, 1924, amounted however, has been downward during the
to $1,392,000,000, an increase of $28,000,000 for month, the increases noted above being occa
the month and of $33,000,000 during the year. sioned by the fact that total earning assets and
This increase was due to gains in total loans total discounts on April 16, 1924, had declined,
(chiefly commercial) amounting to $12,000,000 temporarily, to the lowest levels reached since
(1.0 per cent), and in investments amounting July, 1918, and November, 1917, respectively.
to $6,000,000 (1.7 per cent). Total deposits of Federal reserve note circulation increased
reporting member banks, principally as a re $3,000,000 (0.1 per cent) during the month, and
sult of increases in time deposits, increased at $207,000,000 on May 14, 1924, was $2,000,000
greater than a year ago.
The volume of Federal reserve bank credit
M IL L IO N S OF D O LLA R S
used by member banks (bills discounted) has
shown a definite downward trend during the
present year. This decline has been due entirely
to a decline in borrowings of city banks (report
ing member banks). Borrowings of country
Banking and Credit Situation

M IL L IO N S OF D O L L A R S

Federal Reserve Note Circulation, Bills Discounted,
$17,000,000 (1.3 per cent) during the four Total Reserve«,
and Inveatments, Federal Reserve Bank of San Franciseo
weeks ending May 7th, and on that date
amounted to $1,354,000,000. The latter figure banks (banks outside San Francisco, Oakland,
is $40,000,000 larger than the figure reported a Berkeley, Los Angeles, Portland, Seattle, Spo
year ago. Demand deposits, except for a tem kane, and Salt Lake City) have shown a slight
porary increase during the week ending April upward trend. The largest increases in borrow
16th, remained unchanged throughout the ings of country member banks have occurred
month of April, but increased during the first in California.
week of May and at $725,226,000 on May 7,
An increased demand for acceptances from
1924, were $4,000,000 (0.6 per cent) greater banks, corporations, and private individuals
than on April 9, 1924, and $13,000,000 (1.8 per was noted during April, a result of the gener
cent) in excess of demand deposits held a year ous supply of credit available and of the de
ago.
cline in money rates which began in March.
Total earning assets of the Federal Reserve The abnormal demand was in excess of the
Bank of San Francisco fluctuated widely dur available supply of prime acceptances, and
ing April and the first two weeks of May. At rates on this type of paper declined during the
$82,000,000 on May 14, 1924, they were $4,000,- month from 4 per cent to 3j4 per cent. The
000 (5.1 per cent) greater than on April 16, relative shortage of prime paper has increased

May, 1924

FEDERAL RESERVE AGENT AT SAN FRANCISCO

the demand for bills marked at higher rates,
and acceptances of non-member banks, as well
as trade acceptances, have been sought by bill
purchasers. Reports received by this bank
from 35 of the principal accepting banks of this
district show the following percentage changes
in the amount of bills purchased and accepted
during April, 1924, compared with March, 1924,
and April, 1923:
Apr
compared with
A pr.. 1923

Amount of bills accepted .........
Amount of bills bought ---------Amount of bills held at close of
month . ........ .........................

M ar., 1924

—26.4
— 41.8

— 2.7
—28.7

—26.2

—25.7

Interest rates declined during the five weeks
ending May 17th according to the following
table which shows weekly average interest
rates on various classes of paper in the New
York market as reported by the Federal Re
serve Bank of New York.
M ay 17.
1924

A p r. 12.
1924

Time M oney.............. 3*4-4% 4 # -4 ^ %
Commercial P aper... 4% -4%
4J4
Bankers' Acceptances 3H
4

Stock Land Banks has increased in all states
of the district during the past four months,
and is now well above the levels of a year ago.
L O A N S O U T S T A N D IN G A T C L O S E O F A P R IL
Federal Land BankaJoint Stock Land Banks
1924
1923
1924
1923
Arizona .............. $ 4,639,900 $ 3,679,600 $ 1,301,000 $ 930,900
California .........
19,584,200 16,851,800 12,609,750 10,104,100
Idaho ..................
23,577,620 20,925,945
1,706,100
628,200
681,500
592,600
340,700
101,100
Nevada ...............
Oregon ............... 20,140,730 18,598,180
8,109,900
5,823,450
Utah ................
14,006,100 12,901,300
656,300
398,200
Washington . . . .
28,475,495 25,228,745
1,795,700
1,340,750
Tw elfth D is tric t.$111,105,545 $98,778,170 $26,519,450 $19,326,700

Federal Intermediate Credit Banks, which
first made loans in July, 1923, and which ex
tend credit to agriculture for periods (six
months to three years) intermediate between
short and long time credit, were at the close
of April loaning $6,587,461 in four states of the
district, distributed as follows:
Loans
Outstanding
A p r. 30,1924

Autumn
Peak M ay 12.
1923
1923

5%
4%

5lA %
5
4%

The amount of long time credit extended to
agriculture by Federal Land Banks and Joint

Arizona
California ...
Oregon .............
W ashington ...............
Total

.
-

.$ 198,478
...... 6,041,666
101,387
245,930

.................................................................$6,587,461

PRINCIPAL RESOURCE AND LIABILITY ITEMS OF REPORTING MEMBER BANES IN RESERVE
CITIES IN TWELFTH FEDERAL RESERVE DISTRICT
May 7 .192«

Number of Reporting B a n k s...........................................
Loans and Discounts (including rediscounts)............
Investm ents ........... ................ ........ ......................
Cash in Vault and with Federal Reserve Bank.
Total D ep osits................ ..
, ................. ...............
Bills Payable and Rediscounts with Federal Reserve Bank. ,

67*
.$1,032,079,000
359.778.000
123.015.000
1,353,690,000
22.903.000

A p ril 9,1924

67*
$1,019,848,000
353.966.000
116.975.000
1,336,403,000
27,534,000

M ay 9.1923

6 6*

$ 991,029,000
367.538.000
116.426.000
1,312,789,000
43,428,000,

*Due to change in the composition of the list of reporting banks, current figures are not exactly comparable with those of a year ago«.

COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN FRANCISCO
AT CLOSE OF BUSINESS MAY 14, 1924
R ESO UR CES
M ay 14.1924

A p ril 16.1924

M ay 16.1923

T otal R eserv es.............................................................................................$293,240,000
Bills D iscou n ted .............. .......... .................................... ............... .......
40,945,000
Bills Bought in Open Market............ ......................... ...........
....
7,929,000
United States Government S ecu rities............... ............
............ 33,262,000

$293,080,000
35.738.000
14.471.000
27.377.000

$246,869,000
66.246.000
31.062.000
27.596.000

T otal Earning A sse ts.
All Other Resources*.

82.136.000
51.615.000

77.586.000
55.578.000

124.904.000
55,408,000

Total Resources......

.$426,991,000

$426,244,000

$427,181,000

L IA B IL IT IE S
Federal Reserve N otes in Actual Circulation_________________.$206,657,000
Total D eposits.......................................
........ ...................... ............... 155,394,000
Capital and S u rplu s...................... , ............................................. .
23,302,000
A ll Other L iabilitiesf...... ................................. . ...................... ............ 41,638,000

$203,727,000
156.553.000
23.156.000
42.808.000

$205,266,000
157,493,000
23.066.000
41.356.000

$426,244,000

$427,181,000

45.221.000
41.356.000

43.124.000
39.724.000

T otal L iabilities....................................................... ............................ .$426,991,000
*Incltsdes “Uncollected Item s"..................... ......................................... 41,247,000
fln clu d es "Deferred Availability Items**............................................... 40,150,000

CHANGES IN THE COST OF LIVING
Living costs, both in the United States and
in five principal cities of this district, decreased
slightly from December, 1923, to March, 1924,
following the general downward trend charac
teristic of commodity prices during this period.
Itemized figures showing percentage in
creases or decreases (—) from December, 1923,
to March, 1924, follow:
Los
Angeles
1st
Quarter
ending
Items of
Expenditure

March,
1924

March ...
June
September
Decem ber.
March __

United
States
1st
Quarter
ending

March,
1924

Food .......... .—3.3
.1
Clothing .......
H ousing ____
1.3
Fuel and Light- 1 .0
Furniture and
Furnishings.—2.0
Miscellaneous .
.3

—4.9
.1
.5
1.1

—5.0
0.0
.7
3.2

—2.3
— .2
.1
— .9

— 1.3
— .6

— .6
-—4.7

- 2 .1

— .5
— .3

Total ........... — .8

— 1.6

—2.6

— 1.3

— 1.6

1.3

Cost of Living Index Numbers— December, 1914=100
Wholesale Prices U. S. E
of Labor Statistics
San Francisco
1913 Dec.,1914
Los
and
= 100 =100* Angeles Portland Oakland Seattle
1923

United
States

159
153
154
151

162
156
157
154

172.9
175.1
177.1
178.8

150

153

177.4 155.3 158.0 166.3 165.4

154.6 156.5
154.6 157.6
156.4 160.4
157.8 162.1

161.9
166.4
168.4
168.5

163.9
164.8
167.1
168.2

1924

C H A N G E S IN T H E C O S T O F L IV IN G
San Francisco
and
Portland Oakland
Seattle
1st
1st
1st
Quarter Quarter Quarter
ending
ending
ending
March,
March,
March,
1924
1924
1924

five cities on the Pacific Coast and for the
United States as a whole.

•United States Bureau of Labor index of wholesale commodity
prices is computed with the 1913 monthly average taken as the
base period, and the index number for December, 1914, is 98.
In order to make this column comparable with the Cost of
Living index numbers they were shifted to this December,
1914, base.
C EN T

— .3
.3
— .9

Swings upward and downward which mark
the movement of commodity prices at whole
sale ordinarily precede similar changes in the
cost of living, which reflect changes in retail
prices principally. This normal relationship
appears to have prevailed during the year per
iod March, 1923, to March, 1924, as is indicated
by a comparison of the monthly index numbers
of general wholesale prices compiled by the
United States Bureau of Labor Statistics and
the quarterly cost of living index numbers for

ÏÏ®

5®

e»2

6yi —
01
O®

y
O®

iiW
W(M
OCI

Changes in the Cost of Living shown as Percentage Increase
since December. 1914

Changes in the cost of living in the United
States and in the five cities of this district from
December, 1914, to March, 1924, are summar
ized in detail in the accompanying table (dur
ing June, 1920, the cost of living reached its
highest point).

COST OF LIVING IN THE TWELFTH FEDERAL RESERVE DISTRICT
Percentage Increase or Decrease ( ~ )

C ity

Los Angeles....
Portland..........
San Francisco
and Oakland.
Seattle..........
United States...

Dec.
1914 to
Mar.,
1924

- — Food—
Jane,
1920 to
Mar..
1924

t
Mar..
1923to
Mar.,
1924

Dec..
1914 to
Mar.,
1924

Jane,
1920 to
Mar..
1924

Mar.,
1923 to
Mar.,
1924

Dec.,
1914 to
Mar..
1924

June,
1920 to
Mar.,
1924

103.7
43.4

42.8
3.3
7.6 — .1

37.5 —28.0
28.6 —37.9

5.9
1.6

83.2 —35.7
62.1 —37.4

0.0
.8

35.3 —30.3
32.7 —34.5
36.8 —34.4

4.8
3.5
1.1

94.4 —31.2
77.4 —35.3
74.1 —38.9

2.3
.9
.8

COÛT OF LlVING, Court«»—f
C ity

Los Angeles...................................
Portland........................................
San Francisco and Oakland.........

Furniture
D ec,
191410
Mar..
1924

and Furnishings
Jane.
Mar.,
1920 to
1923 to
Mar.,
Mar..
1924
1924

147.0 —18.3 — .7
. 106.3 —27.4 —1.5
—23.0 — .4
—23.0
3.0
-24.4
1.7

25.2
37.0
63.2 — 6.7
67.0
23.7
Dec..
191410
Mar.,
1924

Mar..
1923 to
Mar.,
1924

4.0
.2
2.8

•M iscellaneous...
%
June.
Mar..
1920 to
192310
Mar.,
Mar..
1924
1924

105.0
9.8
1.7
78.7 — .6
.3
72.7 — 3.9 — 6.4
92.5
1.1
5.4
95.2 — 2
.4

Dec..
1914 to
Mar..
1924

Fuel and Light— \
June.
Mar..
1920 to
1923to
Mar.,
Mar.,
1924
1924

34.0 —12.8 — .4
12.5 — 2.9
65.3
4.3
53.6
3.5
57.7 — 4.9 — 2.0
80.4
6.0 — 2.1

t
Dec.,
1914 to
Mar.,
1924

---- T o ta lJune,
1920 to
Mar..
1924

77.4
55.3
58.0
66.3
65.4

—12.1
—22.6
—19.4
—21.0
—21.3

Mar..
1923 to
Mar.,
1924

2.6
.4
.9
2.7
.9

Full text of Economic Review (Federal Reserve Bank of San Francisco) : May 20, 1924

FRASER