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MONTHLY REVIEW OF B U S IN E S S C O N D IT IO N S ISAAC B. N EW TO N , Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. X San Francisco, California, May 20, 1926 No. 5 S U M M A R Y O F N A T IO N A L C O N D IT IO N S There was a slight decline in the activity of industry and trade in April and a further re duction in the general price level. Commercial demand for bank credit continued large and the volume of security loans, after a rapid de cline since the turn of the year, remained at a constant level. Production. Production in basic industries, according to the Federal Reserve Board’s index, decreased one per cent in April, slight increases in production of lumber and pig iron being more than offset by declines in output in other industries. Particularly large recessions were shown in the production of steel ingots and in textile mill activity. Automobile pro duction, not included in the index, continued in large volume. Factory employment and pay rolls declined slightly in April, particularly in the food, tobacco, textile, and boot and shoe in dustries. The value of building contracts awarded during April was smaller than in March and practically the same as in April of last year. Awards for the first two weeks in May, however, showed increases as compared with the same weeks in 1925. PER CENT Reports by the Department of Agriculture indicate that up to the first of May 68 per cent of spring plowing and 56 per cent of sowing and planting was completed, compared with about 83 per cent and 66 per cent last year. On the basis of the condition of winter wheat on May 1st, a yield of 549,000,000 bushels is fore cast, compared with a final yield of 398,000,000 bushels in 1925. Trade. The volume of wholesale trade in April was seasonally smaller than in March for all lines except meats. Compared with a year ago, sales of groceries, meats, and drugs in creased in April, 1926, while sales of dry goods, shoes, and hardware decreased. Department store sales increased less than usual during the month and were somewhat smaller than a year ago. Sales of mail order houses were slightly smaller than in March, but continued larger than in the corresponding month of 1925. There was some decrease in the stocks of merchandise held by wholesale firms during the month, and inventories of department stores showed less than the usual seasonal increase, though they PER CENT 1922 PRODU CTIO N IN BASIC INDUSTRIES Index of 22 basic commodities corrected for seasonal variation (1919 =■ 100). Latest figure, April, 122. 1923 1924 1925 1926 W H O L E SA L E PRICES Index of U . S. Bureau of Labor Statistics (1913= 100, base adopted by Bureau). Latest figure, April, 151. T h o s e d e sir in g : t h i s r e v ie w s e n t t h e m re g u la rly w ill re c e iv e it w it h o u t c h a r g e u p o n a p p lic a tio n . 34 M ay, 1926 M O N T H L Y R EVIEW OF BUSINESS CONDITIONS were larger than a year ago. W eekly freight car loadings decreased in the early part of April, but later increased, and the volume of shipments for the month of April as a whole, and for the first two weeks in May, was larger than in the corresponding periods of any pre vious year. PER CENT April and the middle of May. Liquidation of security loans, which had been rapid since the beginning of the year, did not continue after the middle of April and the volume of these loans remained fairly constant at a level about $450,000,000 below the peak at the end of 1925. There was some addition to bank investments BILLIONS OF DOLLARS 2 TOTAL RE:SERVE BAKI c I CREDIT I i 1 1 Discour rrs for MEMBElR BANKVV j I i ' s * 1922 D E P A R T M E N T STORE SALES Index of sales of 359 stores (1919—100). Latest figures, April; adjusted index, 129; unadjusted index, 133. U.S.SECURITIES / J \ 1923 J V W V :CEPTAMCES i i1 1924 1925 1926 RESERVE BAN K C R ED IT Monthly averages of daily figures for 12 Federal Reserve Banks. Latest figures are averages of first 21 days in May. Prices. Wholesale commodity prices, ac cording to the Bureau of Labor Statistics’ index, declined slightly from March to April. Increases in the farm products and foods groups, which had been declining for several months, were more than offset by decreases in other groups. The greatest declines were in the prices of clothing materials. In the first three weeks of May prices of wheat, cattle, sheep, cotton goods, pig iron, bricks, and rubber de clined, while prices of hogs, raw silk, and crude petroleum advanced. Bank Credit. Commercial demand for bank credit at member banks in leading cities con tinued in large volume between the middle of and the total of their loans and investments was about $1,000,000,000 larger than in the same period of last year. Withdrawals of funds from New York were reflected in an in crease between the middle of April and the middle of May in borrowings by member banks from the Federal Reserve Bank of New York, while borrowings at most of the other reserve banks declined. Open market holdings of the reserve banks remained fairly constant during the period and there was little change in the total volume of reserve bank credit outstanding. Money rates late in April reached the lowest level for a year, but in May conditions in the money market became somewhat firmer. 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 Statistical Summary— yj Apr., 1926 Mar., 1926 $3,025,345 $3,341,153 Bank Debits— 21 cities* ...................................... 150 150 Bank Debits— Index N um bersf— 20 cities.. $35,058,156 $36,285,512 Building Permits— 20 cities............................... 155 164 Retail Sales— 32 stores— Index N u m bersf. $1,186,917 Savings Deposits— 69 banks* ^................................. $1 180,395 747,518 Lumber Production— 4 associations— board feet* 812,316 607,283 Petroleum Production^:— California— barrels . . . 603,059 355,450 Flour Production— 16 companies— barrels ......... 371,473 Reporting Member Bank Loans and Discounts||* $1,203,697 $1,194,461 Reporting Member Bank Deposits||*.................... $1,622,774 $1,611,525 $41,745 Federal Reserve Bank D isco u n ts^ *....................... $44,228 72.0 Federal Reserve Bank Reserve Ratiofl.................. 72.1 Apr., 1925 $2,668,049 134° $41,593,882 152 $1,094,394° 680,690 598,655 279,372 $1,102,303 $1,549,405 $29,771 78.3 Mar., 1925 Apr., 1926# compared with Apr., Mar., 1925 1926 13.4 $2,826,955 11.9 134° $40,216,339 — 15.7 2.0 147 7.9 $1,102,080° 641,971 19.3 600,839 0.7 33.0 353,703 9.2 $1,100,904 4.7 $1,553,789 $28,762 48.6 77.8 — 7.9 — 9.5 0.0 — 3.4 — 5.5 — 0.5 8.7 — 0.7 4.5 0.8 0.7 5.9 0.1 *In thousands, tAdjusted for seasonal variations— 1919 monthly average=100. JDaily average production. ||May 12 and April 7, 1926; May 13 and April 8, 1925. flMay 19 and April 14, 1926. #Percentage increase or decrease (— ). °Revised. M ay, 1926 fe d e r a l reserve Agricultural Situation Over the Twelfth Federal Reserve District as a whole,mild spring weather, including a gener ous seasonal rainfall, has contributed towards a slightly earlier agricultural season this year than in 1925. Abandonment of winter wheat acreage has been smaller in proportion to the acreage planted than in recent years, and, as shown in the table below, the growing grain reflects the favorable conditions of the present season. Preliminary estimates of prospective winter wheat production indicate a district out put more than double the unusually small crop of last year, and slightly greater than the tenyear average (1916-1925) crop. rT AT SAN FRANCISCO Harvesting of navel oranges in California was practically completed, and picking of Valencia oranges commenced during the past month. Condition of the Valencia orange crop is re ported to be good and the 1926 production is estimated at 11,260,000 boxes, compared with 6,300,000 boxes picked from the 1925 crop. Approximately 90 per cent of this district’s 1925 apple crop (47,000,000 boxes) had been shipped by May 15th, and reports indicate that returns to growers on these shipments have been generally satisfactory. Shipping point prices of two important varieties of Pacific Northwestern apples for the past two seasons are given in the following table: APPLE PRICES* Season commencing June 1st. W IN T E R W H E A T Condition 10-Year (Per Cent Average of Normal) (PerCent of Normal) M ay 1, 1926 1925 85 94 Arizona ............ .100 California . . . . . 88 92 81 81 86 Idaho ................ , 97 94 92 Nevada ............ . 98 80 93 O regon .............. , 97 95 92 U tah .................. . 99 W ashington . . . 91 76 86 Tw elfth D istrict . . 77 83.6 United States ,. . 84 Per Cent t— Acreage*— ^ of Acreage Sown T o be H ar Abandoned har vested vested — M ay— n 1925 1925 1926 1926 3 3 32 32 4 19 603 756 2.5 17 406 466 2 1 2 2 70 350 880 2 2 145 149 2.5 72 372 900 1,910 2.8 53 3,185 5.6 23 31,269 37,085 *000 omitted. Planting of those field crops normally sown at this season is progressing favorably in all states of this district. In California, deciduous fruits are maturing more rapidly than last year because of favor able weather and soil moisture conditions. Acreage of bearing deciduous fruit trees in that state is estimated to be approximately seven per cent larger than last year, and bearing acreage of all grapes is estimated to have in creased approximately eight per cent, as com pared with 1925. Shipments of cherries, nor mally the earliest deciduous fruit marketed from California, totaled 198 car loads up to May 9, 1926, compared with 47 car loads shipped during the 1925 season to the same date. 35 t----------Jonathans----------\ t--------- Winesaps---------- % 1925 Opening 1924 M o n t h f . $1.35—$1.75 $ 1 .65-$2.10 Sept., 1925 Sept., 1924 H ig h M o n th .......... 1 .5 5 - 1.90 2.25 O ct., 1925 N o v .-D e e ., 1924 Low M o n t h .......... 1 .3 5 - 1.75 1 .6 5 - 1.75 Sept., 1925 Sept., 1924 C losing M o n th * .. 1.85 2.25 ______ N o v ., 1925 D ec., 1924 1925 1924 $1.65—$2.10 $1.90-$2.25 Sept., 1925 Sept., 1924 2 .0 0 - 2.30 2 .7 5 - 3.00 N o v ., 1925 F eb., 1925 1 .5 0 April, 1 .5 0 A p ril, 1.70 1 .9 0 1926 Sept., 1.70 2 .6 5 1926 A pril, 2.25 1924 2.85 1925 *R ange as reported by United States Departm ent of Agriculture for shipping points in W enatchee V alley, W ashin gton. fF irst month of heavy shipments. $The month during which the last of approxim ately 90 per cent or more of the crop was shipped. Live stock on the ranges of this district are reported to be in excellent condition and ade quate supplies of range feed are available. Marketing of feed lot cattle in California is re ported to have been practically completed, clearing the way for marketing of the forth coming grass fed cattle of that state and of those areas normally shipping grass fed stock to California markets. C O N D IT IO N OF RANGES A N D LIVESTOCK (Per Cent of Estimated Normal) t----- Ranges— * -Cattle-------- n May 1, A p r.l, M ay 1, Apr. 1, 1926 1925 1926 1926 1925 1926 . .110 63 92 98 65 93 97 California . .. . . 94 84 95 97 91 . . 95 100 99 96 94 99 100 92 99 99 93 98 . .103 88 98 106 80 104 Utah ............... . .100 81 105 96 81 104 W ashington .. . . 9 2 86 92 93 80 90 Source: Sheep-------N M ay 1, A p r.l, 1926 1925 1926 99 90 95 95 92 98 100 97 100 101 99 95 106 103 91 105 93 103 99 85 97 United States Department of Agriculture. ( A ) A g r ic u lt u r a l M a r k e t in g A c t iv ity — t-------- Exports--------- n t------- CarJot Shipments--------> Livestock Receipts ColdStorageHoldings?: Wheat* Barley* Apples* at Eight Markets in 12th District 12th District Portland and San 12th Orangesf Lemonsf Cattle Butter Eggs Puget Sound Francisco Dist. Calif. Calif. and(1000 (1000 (1000 bu.) (1000 bu.) (cars) (cars) (cars) Calves Hogs Sheep lbs.) Monthly April, 1926 ..................................................... M arch, 1926 .................................................... April— 5-year average ............................... (1919-1923) Cumulative 587 1,330° 1,481 509 247 447 1,678 2,729 1,223* 6,699 5,059 5,034 1,309 1,158 991 *----------------------- Crop Y e a r ------------------------ ■. 13,305 10,918 48,996 26,338 4,780 (13 .3 ) (23 .8 ) (90.0) (51.6) (31.9) T o April 30, 1925....................................... 16,482 6,997 37,238 22,422 4,363 (2 4 .6 ) (30 .7 ) (86.6) (46.7) (37.9) Five-year average to April 3 0 ............... 21,603 10,397 46,358$ 22,846 4,039 (1919-1923) (1 8 .7 ) (25.8) (91 .2 ) (48.2) (35.7) To April 30, 1926....................................... 93,805 167,801 252,384 107,497 183,795 80,906|| 145,747|| 225,92011 272 699 293ff t-------------Calendar Y ear------------- \ 417,992 752,217 743,303 Figures in parentheses indicate percentage of new crop only. *Season begins July 1st. average (1923-1926). §At end of month. ||1921-1925. 111922-1926. °Revised. 1,650 185,429 1,04311 427,640 934,237 763,075 359,946i| 753,11511 771,6561! fSeason begins November 1st. iFour-year cases) 140 36 The Department of Agriculture estimates that on May 1, 1926, the condition of the hay crop in all states of this district was slightly below normal, although better than a year ago. Comparatively mild weather during the past winter favored extended use of open pasture and range, with consequent reduction in the amount of hay needed for livestock feeding. A s a result of this situation, stocks of hay now remaining on farms in this district are consid erably larger than usual. Stocks of hay in the United States as a whole are slightly smaller than usual. W o ol shearing is nearing completion in the sheep raising sections of the district. Commer cial factors estimate that the 1926 clip will be approximately 1.1 per cent larger in volume and of slightly better quality than the 1925 clip of 261,000,000 pounds. Prices offered growers have been lower than last year, rang ing from 29 to 33 cents per pound in April, to 25 cents per pound in May, 1926. A much smaller proportion of the season’s clip had been contracted for sale by May 15, 1926, than had been contracted by May 15, 1925. The wool market has been relatively inactive during re cent weeks, with practically no sales being made in the field. Lack of seasonal moisture during February and March and an accom panying shortage of green feeds in important sheep raising sections of central California re tarded growth of spring lambs, making it necessary to hold many animals for a longer feeding period than is usual. Total shipments of live and dressed spring lambs from Califor nia to eastern markets up to May 23rd of this shipping season (222,000 head) were approxi mately 70% as large as shipments during the same period of 1925. Movement of spring lambs from Pacific Northwestern and southern In termountain states commenced during the past month. ( B ) B u ild in g P e r m it s — April, 1926 Value N o. Berkeley ................. B oise ........................ Fresno ..................... L o n g Beach ......... L os Angeles ......... Oakland ................. O gden ...................... Pasadena ............... Phoenix ................... Portland ................. Reno ........................ Sacramento .......... Salt Lake C i t y . .. San D iego ............ San Francisco . . . San Jose ................. Seattle ..................... Spokane ................. Stockton ................. Tacom a .................. District May, 1926 M O N T H L Y REVIEW OF BUSINESS c o n d i t i o n s .. .. . . .. .............. . . 254 84 95 335 3,332 1,010 46 213 90 1,213 24 247 147 679 981 122 1,031 276 91 286 10,556 $ Industrial Activity Changes in the industrial situation in this dis trict during April, 1926, were largely seasonal in character. Increases in activity in the lum ber and food products industries and in agri culture caused an increase in total volume of employment, which continued at approximately the levels of a year ago. A slight surplus of skilled building tradesmen, general construc tion workers, wood and lumber mill workers, and common laborers was reported. Current employment data for California and Oregon are presented in Table “ C.” A slight diminution of building activity in this district is indicated by reports of building permits issued in 20 principal cities during re cent months. Cumulative figures of value of permits issued during the first four months of 1926 ($127,245,973) were below those of the first four months of 1923 ($130,619,621), 1924 ($141,322,454), and 1925 ($145,923,581), the latter figure being the largest ever reported. A t $35,058,156 for April, 1926, the estimated cost of proposed building showed a slight decrease as compared with March, 1926, was 15.7 per cent less than in April, 1925, one per cent less than in April, 1923, but was larger than for the same month in other years. Decreases re ported from Los Angeles, Oakland, and Seattle were responsible for the decline in the value of permits issued in April, 1926, as compared with April, 1925. In San Francisco, although building operations were somewhat hampered by a carpenters’ strike, issuance of permits for several large office buildings brought the monthly total of permits granted to the highest figure reported since the days of reconstruction following the earthquake and fire of 1906 (ex(C) E m p l o y m e n t — t— - Calif onaia---------* — Oregon*----------- % N o . of N o . of N o. '—Employees —' N o. »— Employees of A p r., M ar., of A p r., M ar., Firms 1926 1926 Firms 1926 1926 744 156,361 146,585 98 16,752 16,256 (6 .7 ) (3.1) Industries April. 1925 N o. Value 642,100 55,822 186,921 490,190 11,207,289 2,134,179 183,250 948,839 149,653 3,176,370 110,700 1,349,576 923,015 1,596,560 7,299,451 611,730 2,534,130 393,580 247,676 817,125 349 75 91 424 4,040 1,175 47 230 95 1,425 30 287 187 686 994 109 1,135 276 101 339 $35,058,156 12,095 $ 842,388 44,138 202,287 754,649 14,498,031 3,530,546 139,600 900,043 218,347 3,403,300 115,175 746,522 963,675 1,538,766 6,102,731 315,045 5,593,820 475,411 237,523 971,885 $41,593,882 Stone, Clay and Glass Products. 45 Lum ber and W o o d M anufactures . . 118 19 Clothing, M illinery and Laundering. 7,981 (2 .2 ) 7,809 6 262 (2 .3 ) 256 28,069 (1 0 .2 ) 2,604 (1 .0 ) 25,480 40 5 13,409 (3 .2 ) 1,123 (1 .9 ) 12,995 2,579 1,102 63 7,773 (— 1.9) 7,927 7 533 (— 0.7) 537 F ood, Beverages and Tobacco . . 155 29,753 (26.9) 23,454 31 859 (2 .0 ) 842 W ater, L igh t and Power ................. 5 8,937 (4 .8 ) 69,010 (0 .5 ) 2,234 (4 .4 ) 9 566 (8 .0 ) 524 O ther Industries*. 327 M iscellaneous ______ .... 19 8,532 68,663 2,141 *Includes the following indu stries: m etals, m achinery and con veyances ; leather and rubber g o o d s ; chemicals, oils and p a in ts; printing and paper goods. Figures in parentheses represent percentage changes from M arch. M ay, 1926 cepting only January, 1914, when the total, $7,349,816, was swelled by $6,000,000 of Panama Pacific Exposition building permits.) BUILD IN G PERMITS IN 20 CITIES Per Cent Increase or Decrease (— ) Months in 1926 compared with same Months in Month in 1926 compared with t--------------------- 1925 ------------------- preceding No. Monthly Value April . . . — 12.7% M arch . . — 7 .8 % February. — 1 1 .2 % J a n u a ry .. — 1 3 .8 % Year-to-date No. Value No. Month Value — 15.7 % — 11.2% — 1 2 .8 % — 1 3 .5 % — 3 .4 % — 9 .8 % — 10.7% — 1 1 .6 % 3 7 .1 % 3 5 .7 % — 1 8 .1 % — 1 2 .6 % — 1 2 .8 % — 4 .4 % — 8 .3 % — 7 .3 % .... .... 3 .5 % — 2 1 .3 % The United States Bureau of Labor Statis tics’ index number of wholesale building ma terials prices declined from 176 in March, 1926, to 173 in April. In April, 1925, it was 174. The Aberthaw index of the total cost of construct ing a reinforced factory building remained at 199 in April, 1926. This compares with 195 on May 1, 1925, the increase over the year period being due chiefly to advancing labor costs in eastern centers. A large seasonal increase in lumber produc tion by mills which are members of four asso ciations operating in this district was reported for April, 1926, and the cut was 8.7 per cent and 19.3 per cent greater than in March, 1926, and April, 1925, respectively. Lumber markets were relatively less active in April than in March, 1926, and production exceeded both shipments and new orders received. Volume of new orders booked by the mills declined 5.2 per cent during April, 1926, but was 7.8 per cent greater than in April, 1925. During the first four months of 1926 the lumber industry of this district produced 8.7 per cent more lumber than in the first four months of 1925, yet ship ments exceeded production and orders received exceeded shipments. These conditions have been reflected in a reported tendency toward firmer prices at producing centers. LUM BER A C T IV IT Y * Apr., Mar., Apr., e— First Four Months —% 1926 1926 1925 1926 1925 (board feet) Production . . . 812,316 Shipments ------ 788,887 Orders ............... 751,192 Unfilled Orders 553,076 N o . of M ills Reporting . . . 192 (board feet) 747,518 761,183 792,462 511,405 (board feet) 680,690 678,834 697,042 479,313 183 184 (board feet) 2,609,064 2,753,379 2,793,579 (board feet) 2,401,343 2,498,326 2,480,632 PETROLEUM—California Indicated Average Stored Average Daily Stocks at Consumption End of Daily Production (Shipments) Month (barrels) 1926. . . 603,059 1926. . . 607,283 1925. . . 598,655 1923* . . 858,750 (barrels) 873,618 580,740 500,053$ t (barrels) 124,685,080 132,801,846$ 107,474,015$ t /— New Wells -> Daily Produc tion Number Opened 95 105 83 93 (barrels) 24,267 23,663 26,008 139,960 *Peak of production. fComparable figures not available. $Revised. Source : American Petroleum Institute. Flour production, as reported by 16 large milling companies in this district, increased during April, 1926, as compared with March, 1926, and April, 1925, by 4.5 per cent and 33.0 per cent respectively, and approximately equaled the five-year (1921-1925) average pro duction for April. Since August, 1924, produc tion of these mills has been continuously below the five-year average. Millers’ stocks of flour and wheat decreased during April. On May 1st reported stocks of flour w'ere approximately 25 per cent less than one year ago and were less than the five-year average for that date by an equal amount. Millers’ stocks of wheat on May 1, 1926, were 51.6 per cent larger than on May 1, 1925, and 10 per cent larger than the five-year average for that date. Domestic and foreign flour markets were relatively inactive during April, 1926, although activity, particu larly in domestic markets, has been at higher levels during recent months than one year ago. FLOUR M IL LIN G * Output ( b b ls .) -----Stocksf Flour ( b b l s . ) . . . W h eat ( b u .) ------ Five-Year Average April, Apr., 1925 1921-1925 Apr., 1926 Mar., 1926 371,473 355,450 279,372 372,704 375,133 1,942,454 402,253 2,285,652 499,978 1,281,184 503,559 1,761,666 f A s of the first day of the fol 182f Figures of national production of non-ferrous metals follow : N ON-FERR O US M ETALS-National Production Apr., 1926 Mar., 1926 Apr., 1925 Copper (short tons) (mine production) ........................... Zinc (short tons) ( s l a b ) . . . Silver (o z .) (commercial bars) ......................................... April, 1925. There were 8,214,864 barrels of oil destroyed by fire on tank farms of the state during April, this loss causing a decline of 6.1 per cent in storage stocks. Indicated average daily consumption, excluding loss by fire, in creased during the month but continued less than production, and if there had been no loss of oil by fire, stocks on hand would have in creased by 98,098 barrels. * A s reported by 16 companies. low ing month. 183f *A s reported by four associations, 000 omitted except in case of number of mills reporting. fA v e ra g e of first four months. S o u rce : N ational Lum ber Manufacturers Association. 73,006 53,334 75,450 54,411 70,432 48,851 4,954,000 5,225,000 5,125,000 Reported daily average production of petro leum in California has declined during each of the past eight months, but, at 603,059 barrels in April, 1926, was 0.7 per cent greater than in 37 FEDERAL RESERVE AG EN T A T SAN FRANCISCO General Business and Trade The generally high level of business activity which characterized the greater part of the year 1925 appears to have been maintained during the first four months of 1926. Seasonal declines, which usually follow the spring peak of trad ing, were more pronounced during March and April, 1926, however, than in the same months of 1925. Amount of debits to individual accounts (bank debits) in 20 principal cities of the dis trict was seasonally less during April than in March, 1926. This bank’s unadjusted index of M ay, 1926 M O N T H L Y R EVIEW OF BUSINESS CONDITIONS 38 daily average bank debits (daily average 1919 = 1 0 0 ) declined 5.9 per cent from 159.3 for March, 1926, to 149.9 for April, 1926. Adjusted for seasonal variations, the index stood at 150.3 in March, 1926, 150.1 in April, 1926, and 134.2 in April, 1925. INDEX NUMBERS the spring months of 1926 and 1925 should allow for differences in Easter dates in the two years (April 12th in 1925 and April 4th in 1926), and for the purpose of making such allowance it is desirable to combine figures of sales for March and April in each year. Total sales of the 32 department stores whose figures are used in this index were 6.4 per cent greater in March and April, 1926, than in the same months of INDEX N UM BERS BANK D E B I T S -T W E L F T H DISTRICT Index for 20 principal cities, Phoenix, Arizona, not included,(daily averages, 1919 average =100). Latest figures, April, with _____ adjustment, 150; without adjustment, 159. *B ased upon average m onth to month increase during the years 1919 to 1925 inclusive. During April sales of 68 reporting retail stores increased 1.4 per cent as compared with the same month a year ago, and during the first four months of the present year were 4.2 per cent larger than in 1925. Increased sales were reported from Los Angeles, Oakland, and Spo kane, and decreased sales were reported from Salt Lake City, San Francisco, and Seattle dur ing April, 1926, as compared with April, 1925. This bank’s index of department store sales in the Twelfth District, which makes allowance for seasonal changes, declined from 164 (1919 monthly average=100) in March, 1926, to 155 in April. A year ago in April it stood at 152. A comparison of retail trade movements during (D) B a n k D e b i t s *— April, 1926 19,504 Berkeley ..............! ; 11,950 Boise ..................... 36,418 Fresno ................. Long Beach . . . 56,027 863,984 L os Angeles . . . Oakland .............. 168,264 17,017 Ogden .................. Pasadena ............ 38,163 Phoenix ............... 26,007 Portland .............. 173,443 Reno ..................... 8,584 29,368 Sacramento . . . . 73,051 Salt Lake C ity .. 69,925 San D iego .......... San Francisco .. 1,041,377 San Jose .............. 24,668 Seattle ................. 221,119 Spokane ............... 57,958 Stockton .............. 26,436 Tacom a ............... 48,796 Y akima ................ 13,286 District ........... $3,025,345 *000 omitted. April, 1925 $ 18,045 10,419 28,493 48,430 778,200 136,691 20,863 36,494 22,139 167,684 7,656 34,807 75,466 54,320 880,585 23,689 195,786 50,504 23,123 43,051 11,604 $2,668,049 t— Four Months — > 1926 $ 78,609 50,545 143,565 219,650 3,566,899 684,043 88,644 158,637 103,289 680,573 33,588 132,764 285,146 265,971 4,455,517 99,185 836,778 216,466 107,764 185,250 49,437 $12,442,320 1925 $ 73,244 43,811 114,257 196,169 3,174,004 533,796 95,127 149,408 95,217 612,103 30,459 151,939 273,411 210,494 3,718,498 94,941 766,096 196,815 100,878 171,192 45,476 $10,847,335 D E PAR TM EN T STORE S A L E S -T W E L F T H D ISTR ICT Index of 32 Stores in 7 cities (1919 monthly average=100). Latest figures, April, with adjustment, 164; without adjustment, 160. 1925. Stocks of goods held by reporting stores increased 7.9 per cent in value during March and 1.8 per cent during April and on April 1 and May 1 were 3.9 per cent and 3.6 per cent greater in value, respectively, than at the end of March and April one year ago. Indicated rates of stock turnover in March and April, 1926, were 3.3 and 2.9 times per year, as com pared with 3.1 and 3.0 times per year in March and April, 1925. D EP AR TM EN T STORE SALES—Index Numbers (1919 Monthly Averag;e=100) Without Seasonal Adji Los Angele; A p ril, M arch, F eb., Jan., April, M arch, 1926. . 1 9 2 6 .. 1 9 2 6 .. 1 9 2 6 .. 1 9 2 5 .. 1 9 2 5 .. 222 247 180 210 218 215 ment Oak land San Fran cisco Salt Lake City 144 148 112 124 133 129 134 146 108 113 135 132 106 105 82 86 110 98 139 147 142 128 141 133 113 115 114 104 117 107 Spo kane Dis trict 102 95 73 75 98 95 95 93 76 70 92 77 150 160 119 130 147 143 108 102 113 99 104 102 98 110 110 97 95 91 155 164 156 148 152 147 Seattle it With Seasonal Adjustment A p ril, M arch, F eb., Jan., April, M arch, 1 9 2 6 .. 1 9 2 6 .. 1 9 2 6 .. 1 9 2 6 .. 1 9 2 5 .. 1 9 2 5 .. 237 255 223 221 232 223 149 158 149 145 137 138 Total value of sales of 164 wholesale firms in eleven lines of trade, reporting for April, 1926, was 3.1 per cent larger than during April, 1925, and 5.8 per cent less than during March, 1926. Eight of the eleven lines for which segregated data are available showed increases over the year period. The general level of wholesale prices has declined approximately 3 per cent since April, 1925, a factor which should be taken into account when comparing figures of dollar sales in an endeavor to estimate physical volume of trade. W H O L E SA L E T R A D E Percentage increase or decrease (—) t-----------in Value of Sales...... — \ Apr.. 1926 Apr., 1926 Mar., 1926 compared compared compared No. of with with with Firms Apr, 1925 Mar.. 1926 Mar.. 1925 Agricultural Im plem ents. A utom obile Supplies . . . . Au tom obile T i r e s t ............ D rugs ....................................... D ry Goods ............................ Electrical Supplies ........... Furniture .............................. Groceries ............................... Hardw are .............................. Shoes ........................................ Stationery ............................. 15 13 17 7 15 9 16 21 17 10 24 22.3 1.0 14.2 1.8 1.1 1.5 — 1.5 5.5 5.4 1.0 — 9.6 — — — — — — — 25.5 1.5 5.7 6.0 12.7 4.4 13.9 3.3 — 0.9 — 7.6 — 14.9 — 26.6 7.0 29.7 5.7 6.8 — 3.1 9.5 — 5.7° 5.2 — 2.5 6.1 tT h ese figures are probably influenced by the discontinuance by certain of the larger companies of “ spring dating” sales, or the practice of advancing credit on sales made in autumn months until M arch, April, and M ay of the following year. °R evised. On April 30, 1926, savings deposits in 69 banks in seven principal cities of the district were 7.9 per cent larger than on April 30, 1925, and 0.5 per cent smaller than on March 31, 1926. The latter movement is seasonal. SA V IN G S DEPOSITS Number of Banks L o s A n geles . . 13 O aklandt ____ 7 Portland .......... 7 Salt Lake City 8 San Francisco. 14 Seattle .............. 14 Spokane ........... 6 Total 39 FEDERAL RESERVE A G E N T A T SAN FRANCISCO M ay, 1926 ............ Apr. 30, 1926* $416,044 99,571 54,460 32,342 479,715 79,173 19,090 Mar. 31. 1926* $412,912 100,240 55,021 33,541 487,851 78,089 19,263 Apr. 30. 1925* Apr. 30,19261 compared with Apr. Mar. 30. 31, 1925 1926 $370,184 12.4 0.8 94,552 5.3 — 0.7 51,968 4.8 — 1.0 29,757 8.7 — 3.6 456,643° 5.1 — 1.7 71,821 10.2 1.4 19,469 — 1.9 — 0.9 69 $1,180,395 $1,186,917 $1,094,394° 7.9 — 0.5 *000 omitted. t Percentage increase or decrease (— ) . ^Includes one bank in Berkeley which was formerly a branch of an Oakland bank. “ Revised. Prices The United States Bureau of Labor Statis tics’ index of wholesale prices declined slightly during April, 1926, standing at 151.1 (1 9 1 3 = 100), compared with 151.5 for March, 1926, and 156.0 for April, 1925. Small advances in the farm products and foods groups were more than offset by declines in the remaining groups comprising the general index. The Department of Agriculture’s farm price index remained unchanged at 140 in April while the Labor Bureau’s wholesale price in dex of non-agricultural commodities declined from 161.6 in March to 159.5 in April, causing the ratio between these two index numbers, an indication of the purchasing power of farm products, to advance from 87.0 in March to 87.8 in April, 1926. The advance during April was the first change in this ratio since September, 1925, when it stood at 88. One year ago the ratio was 91. The weekly average price of beef cattle at Chicago declined slightly during April while weekly average prices of lambs and hogs tended upward. Seasonal trends of livestock prices at Chicago and at the chief livestock markets of this district correspond in a general way. Chi cago quotations follow: L IV E S T O C K P R IC E S A T C H I C A G O (Weekly average per 100 pounds) W eek Ending Beef Cattle M ay 7, 1926................. $9.30 April 2, 1926............... 9.50 M ay 2 , 1925................. 10.00 Lambs Hogs Sheep $14.70 $12.80 $8.50 12.50 11.70 8.00 14.80 11.60 7.10 W heat prices advanced during April and de clined slightly during the first weeks of May. September contract wheat at Chicago was quoted at $1.30j4 to $1.32% per bushel on May 17, 1926, compared with $1.34 to $1.37% per bushel on April 18th, $1.29 to $1.31% per bushel on April 1st, and $1.42^4 to $1.45^2 per bushel one year ago. Cotton prices continued downward during the past month. Spot quotations for middling uplands cotton at New Orleans for the week ending May 7, 1926, ranged from 17.89 to 18.02 cents per pound, the figures showing a decline of 1.6 per cent during the month and being 26.0 per cent below the quotation of one year ago (24.05 to 24.50 cents per pound). An aver age of 98 wool quotations on the Boston market changed little during April. On May 7, 1926, it stood at 67.77 cents per pound, a figure slightly below that of a month ago (69.93 cents), and 12.34 cents (15.5 per cent) below that of a year ago. The relative stability of prices of canned fruits during the 1925-1926 marketing season has been noteworthy. Quoted prices of prac tically all the staple items with the exception of pears and apricots have changed little from ( E ) C o m m o d it y P r ic e s — Commodity W holesale Prices (U . S. Bureau of L abor) 1 9 1 3 = 1 0 0 ......................................... Purchasing Power of Farm Products (U . S. Department of Agriculture)* W h e a t................................Chicago contract price for September w heat............. B arley............................... Shipping barley f. o. b. San Francisco......................... C otto n ............................... M iddling Uplands— W eek ly range of spot quota tions at N ew O rlean s.......................................................... W o o l ..................................Average of 98 quotations at B o sto n ................................. S u gar..................................Beet granulated f. o. b. San Francisco........................ P runes............................... Size 4 0 /5 0 in 25-lb. boxes f. o. b. California. . . . C opper............................... Electrolytic— M onthly average at N ew Y o rk . . . L e a d ....................................M onthly average at N ew Y o r k .................................. S ilver.................................. M onthly average at N e w Y o r k ................................... Z in c.................................... M onthly average at St. L o u is...................................... Lum ber (S o ftw o o d ). .W e ek ly Ind ex U nited S ta tes?.................................... Unit bu. cental lb. lb. lb lb. lb. lb. oz. lb. M ay 7,1926 151.1 87.8 1 .3 3 ^ -1 .3 5 1.20-1.2 5 17.89-1 8 .0 2 0 67.770 5.6O0t .0 8 ^ -.0 9 ^ 13.7060 7.9710 64.4090 7.0010 31.52 One Month Ago 151.5 87 1 .2 9 -1 .3 1 ^ 1.30-1.35 One Year Ago 156.0 91 1 .3 5 -1 .4 2 ^ 1.70-1.75 17.96-18.550 69.930 5.350 .0 8 ^ 2 -0 9 13.8590 8.3860 65.8800 7.3320 31.40 24 .0 5 -2 4 .5 0 0 80.210 5.700 .09 13.2520 8.0050 66.8990 6.9850 31.03 *Ratio of farm prices (August, 1909-July, 1914=100) to wholesale prices of non-agricultural commodities (1910-1914=100). fM ay 12, 1926. JAs published by “ The Lumber Manufacturer and Dealer.” 40 M ay, 1926 M O N T H L Y R EVIEW OF BUSINESS CONDITIONS the 1925 opening prices. Prices of canned pears have declined slightly and prices of canned apricots have advanced. Prices of dried fruits have fluctuated more than have prices of canned fruits, but have been relatively more stable than during recent previous years. The price of refined beet sugar at San Fran cisco on May 12, 1926, stood at $5.60 per 100 pounds, an increase of 25 cents since April 3, 1926. A year ago the quotation was $5.70. April average prices of copper, lead, silver, and zinc declined 1.1 per cent, 4.9 per cent, 2.2 per cent, 4.5 per cent, respectively, from the average prices of March, 1926. The averages for copper and zinc were 3.4 per cent and 0.2 per cent higher during April, 1926, than during April, 1925, but those for lead and silver were 0.4 per cent and 3.7 per cent below the prices of one year ago. Lumber prices at Pacific Northwestern producing centers tended up ward during April. point than ever before. Net demand deposits increased during April and the first half of May, but remained smaller in volume than a year ago. REPORTING M EM B ER BA N K S*— Twelfth District (In millions of dollars, percentage changes in parentheses.) Condition (----------- Chan May 12, 1926 Total Loans ...................... Commercial Loans Loans on Securities . . . Investm ents ....................... T otal Loans and In vest ments ............................... . . . . Five Weeks Ago . 1,204 . 906 . 298 . 476 + + + + . . 1,680 .. 763 Tim e Deposits . . . . .. 837 Borrow ings from Federal R eserve Bank . . 35 9 3 6 9 (0 .8 ) (0 .3 ) (2 .2 ) (1 .9 ) + 18 (1 .0 ) + 13 (1 .8 ) + 6 (0 .7 ) — 6 ( 0.8) + 73 ( 9.5) — + 15 (70.3) 1 (1 .5 ) + 128 ( 8.2) *T otal resources of reporting banks are approxim ately 50 per cent of total resources of all banks, and 71 per cent of total resources of all member banks in Tw elfth Federal Reserve District. Reporting banks embrace m em ber banks in San Francisco, Los A ngeles, Oakland, Portland, Seattle, Tacom a, Spokane, Salt Lake City, and Ogden. MILLIONS OF DOLLARS 300 ■•A TOTALR ESERVES/> \ Banking and Credit Situation __ The banking and credit situation in the Twelfth Federal Reserve District changed little during the five weeks period ending May 12th. FEDERAL RlESERVE HOTE CIRCULATIOH BILLS DISCOUNTED i 100 ■ / / A ? « MILLIONS OF DOLLARS 200 kV . y INVESTMEl^ITS 1922 1923 1924 1925 1926 RESERVE BAN K CR E D IT —T W E L F T H D ISTR ICT Figures for Federal Reserve Bank of San Francisco, as of last Wednes day of each month. Latest figures, April 28. M EM B ER BAN K CR EDIT—T W E L F T H D ISTR ICT Figures for 66 member banks in leading cities, as of last Wednesday of each month. Latest figures, April 28. Commercial loans of 66 reporting member banks in nine principal cities of the district have varied only a fraction more than one per cent above or below $900 million since the middle of last September. Loans made on securities as collateral, on the other hand, have steadily increased during this period, a move ment which continued during April and the first half of May. Increase in total loans has accom panied increased activity in production and dis tribution of goods, and in the financing of new construction. The figure for total loans and in vestments on May 12, 1926, only excepting the March, 1926, tax period and the December, 1925, pre-Christmas season, was at a higher Total earning assets of the Federal Reserve Bank of San Francisco have fluctuated consid erably during the past several weeks, but were of approximately the same volume on May 19th as one month earlier. Rediscounts of short time paper secured by United States Government securities have increased, supplementing the discounting of ordinary commercial paper for the financing of manufacture and trade. Security holdings also increased but gains in these two items were more than counterbal anced by decline in amount of bills purchased in the open market. Circulation of Federal Re serve Notes was unchanged during the month. The reserve ratio stood at 72.1 on May 19th compared with 72.0 on April 14th. The dis count rate continued at 4 per cent, the official rate established on November 23, 1925. FED ER AL RESERVE BANK OF SAN F R A N C ISC O (in millions of dollars, percentage changes in parentheses.) Con dition /May 19, 1926 T otal Bills and Securities., B ills D iscounted ................ .. U nited States Securities.. , Bills Bought .......................... Total Reserves ....................... Total D eposits ......................., Federal Reserve N ote Circulation ........................ ., 114 44 50 20 255 168 186 Five Weeks Ago — 2 ( 1.5) + 2 ( 5.9) + 1 ( 2.1) — 5 (20.7) — 4 ( 1.4) — 5 ( 2.9) 0 One Y ear Ago f-23 -1 4 b 5 h 3 -2 5 + 5 (2 4 .6 ) (4 8 .6 ) (1 2 .1 ) (1 7 .7 ) ( 9.0) ( 3.2) - 9 ( 4.7)
@FedFRASER