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« W N O T TO BE RELEASED FOR PUBLICATION BEFORE TH E AFTERNOON OF N O V E M B E R 2 8 , 1 9 2 1 A g r ic u l t u r a l a n d B u s in e s s C o n d it io n s IN T H E T W E L F T H F E D E R A L R E S E R V E D IS T R IC T M on th ly R e p o rt to the F ed eral R eserv e B oa rd by JOHN PERRIN, Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. V. San Francisco, California, November 16, 1921 S IE R credit conditions in the district, E Awhich became apparent during Septem ber, largely as a result of the rapid and heavy marketing of agricultural products, have continued in greater degree during October. Interest rates to customers of banks in tw o of the largest cities, San Francisco and Seattle, are reported to be per cent T h e M onth less and to stand at 6 and 6 y2 per cent respectively. The rate on prime bills in the acceptance market is now 4 per cent as compared with Ay2 per cent a month ago. Advances to member banks by the reserve bank were reduced by 26 per cent dur ing the month ending November 9th and on that date were $88,000,000, which is the small est amount advanced at any time since January 23, 1920. Greater activity is apparent in the field of industry. The improvement discernible during September in the lumber industry continued in October, demand for lumber showing a marked increase over previous months of this year, with recent price advances generally main tained. The amount of orders received by 161 reporting mills (441,221,000 feet) was the larg est total booked in any one month since March, 1920. In the mining industry the activity of lead producers is noteworthy. The lead mines of Utah and Idaho, which produce approxi mately 50 per cent of the United States output of lead, are now operating at full capacity. W ith the practical ending of the strike in the San Joaquin Valley fields of California, produc tion of petroleum has risen rapidly. As a result of the strike October production was the lowest of any month in several years and stored stocks were consequently drawn upon to meet the demand. Building activity in this district dur ing October passed all records both of number No. 11 and value of building permits issued, a con tinuation of the rapid increase in volume of building operations which began in July of this year. Building permits issued in 20 principal cities of the district during October, 1921, numbered 11,442, with an estimated valu ation of $23,333,741, exceeding the previous record month of September, 1921, by 373 or 3.3 per cent in number and by $3,198,748 or 15.8 per cent in value. Sales of electric power for industrial purposes in California during September, as reported by the eight principal power producers, were 4.5 per cent greater in kilowatt hours than in September, 1920, the outstanding increases being in the San Joaquin Valley and in southern California. The total output of electric energy by these companies was 35.7 per cent greater than in September, 1920. Increased activity in industrial centers during the month provided sufficient additional employment to offset the decline noticeable in the rural districts with the end of the harvest, and employment conditions as a whole in the district are practically unchanged as compared with those of the preceding month. In the field of business, bank clearings of 20 principal cities, which were 14.1 per cent less than those of October, 1920, (the high est point ever recorded in the district) indi cate that the physical volume of trade in the district is greater than it was a year ago, the percentage of decline in clearings, 14.1 per cent, being less by a considerable margin than the percentage of decline in prices during the year ending October, 1921, which is estimated to have been 37 per cent at wholesale and 20 per cent at retail. Reports from 187 whole salers in ten lines of business in the district indicate that net sales during the nine months of this year were 10 to 50 per cent less in Those desiring this report sent them regularly will receive it without charge upon application. 2 A g r ic u ltu r a l a n d B u s in e s s value than those of the corresponding period in 1920. These percentages of decline roughly approximate the percentages of the decline in prices of their wares reported by these mer chants and it is probable that the physical volume of wholesale trade today is not greatly different from that of October, 1920, with the exception of agricultural implements, in which line the reduced purchasing power of rural communities is strongly reflected. Reports from 33 representative department stores indi cate that their O ctober sales were 6.3 per cent less in value than the sales of October, 1920. They advise that their prices are from 10 to 30 per cent less than they were a year ago, and it seems fair to conclude that the volume of mer chandise passing over their counters is now appreciably greater than it was in October, 1920. Harvesting of the 1921 crop of wheat in this district is completed and production estimates remain unchanged, indicating a yield of 112,890,000 bushels, W heat and with 100,232,000 bushels proBarley duced in 1920. This season’s wheat is reported to be excellent in quality by both Government and private authorities, the United States Department of Agriculture grading it from one to two points above the ten-year average in Oregon, W ash ington and Idaho. Marketing of the wheat and barley crops of the district this season has been distinguished by the abnormally heavy movement to terminal concentration points immediately after harvest. The rapid movement of California barley is attributed to the unusual export demand which continued up to the latter part of August, causing nearly two-thirds of the crop to move marketward during the months of July, August and early September. Growers of wheat also sold their crops freely immediately after har vest, partly in order to meet financial obliga tions and partly on account of the active export demand. The rapidity of the movement is shown by a comparison of receipts and exports C o n d itio n s of wheat and barley at terminal shipping points of the district this year and last year. Receipts and exports of wheat at Portland and Puget Sound ports since the beginning of the crop year fo llo w : R E C E IP T S P o r tla n d .......... Puget Sou n d.. . . . . Totals .......... EXPORTS Percentage Increase 1921 over 1920 July 1-N o v. 12 1921 (cars) July 1-N ov. 13 1920 (cars) 15,490 9,207 6,639 5,184 24,697 11,823 133.3 77.6 108.8 July 1-N o v. 1 1920 (bushels) Percentage Increase 1921 over 1920 7,703,520 2,096,298 9,799,818 117.7 50.0 103.3 July 1 -N o v. 1 1921 (bushels) P o r t la n d .......... , 16,776,340 3,148,516 Puget S o u n d ..... Totals .......... , 19,924,856 Receipts and exports of barley at San Fran cisco for the season July 1 to November 1, 1921 and 1920, were as fo llo w s : July 1 -N ov. 1 1921 (centals)* J u ly l-N o v . 1 1920 (centals)* Receipts 5,504,420 c o m p a r e................... d E x p o r t s .................... 5,742,871 1,488,040 1,449,344 Percentage Increase 1921 over 1920 271.2 289.6 *O ne cental equals approximately two bushels. A distinct slowing down of grain marketing was noticeable in O ctober and little grain is moving on new orders at the present time. The market for both wheat and barley is reported to be weak, and prices declined during the past month. Average net returns to the wheat growers of the Pacific Northwest during O cto ber of this season are reported to have been 80 cents per bushel, compared with a net return of $1.81 per bushel in October, 1920. California barley growers are reported by commercial factors to be receiving from $1.00 to $1.25 per hundred pounds, f. o. b. shipping points, at the present time, which is the equivalent of 5 0 -6 2 ^ cents per bushel. The average net return to California barley growers during October, 1920, was $1.03 per bushel. Table “ A ” shows the exports of wheat from Columbia River and Puget Sound ports by principal countries of destination for October and the cereal years 1921 and 1920. (A) Exports o f Wheat from Pacific Northwest*— f -----------------------October----------------------- July 1st to November 1st 1921-1922 1920-1921 (bushels) (bushels) 1921 (bushels) 1920 (bushels) 4,704,223 691,065 3,712,590 4,210 291,216 14,224,131 9,598 1,142,824 12,041 1,272,242 270,667 13,397 4,055,528 270,667 30,745 32,083 T otals ..................................................... 6,954,448 4,017,203 19,733,493 9,795,875 Europe ...................................................... Hawaii ....................................................... South America ...................................... South Africa ............................................ Orient ........................................................ India .......................................................... British Colum bia.................................... *Figures compiled by the Portland Merchants Exchange. 9,065,108 804 499,138 198,742 F ederal R eserv e B a nk of San F r a n c isc o 3 4 A g r ic u ltu r a l a n d B u s in e s s Flour mills of the district continued to oper ate at approximately two-thirds of capacity during the past month. Actual production of 63 reporting mills in October was M illing 61.9 per cent of capacity, compared with 63 per cent in the preceding month and 51.5 per cent one year ago. D om es tic demand for flour is reported as only fair, and export demand dwindled to small propor tions during the month. The flour market was further weakened by the October decline in wheat prices and millers are reported to be awaiting further developments in the wheat market before buying stocks of wheat and ex panding their operations. Stocks of flour held by millers on November 1st, as reported by 15 large operators, were 309,964 barrels compared with 412,964 barrels held on Novem ber 1, 1920. Stocks of wheat held by the same millers were 1,912,769 bushels on Novem ber 1st as compared with 1,838,192 bushels held one year ago. Table “ B ” shows the O ctober production of the reporting mills by states and the percentages of mill capacity in operation this year and last. Recent frosts in the alfalfa producing sec tions of this district marked the end of the 1921 hay producing season, and latest available esti mates of tame and wild hay production Hay place the total crop of the district at 13,989,000 tons, as compared with 14,082,000 tons produced in 1920. Estimated pro duction by states for the 1921 hay season, with an estimate of the percentage of hay which is usually baled for market, is as follow s : chief one of which has been the absence of demand for hay by feeders of livestock. R e duced numbers of cattle and sheep in all states, and the poor financial condition of the “ feeder industry,” with resultant decline in stocker and feeder purchases, have caused a large decrease in the consumption of hay. In the Intermoun tain states, this condition has been aggravated by a large carryover of 1920 crop hay and an excellent range condition during 1921, which has to date made the purchase of hay almost unnecessary. W ith the com ing of winter, how ever, demand for hay to feed livestock is ex pected to relieve the situation to some extent. High freight rates and lack of eastern demand for hay are also reported as contributing fac tors to the present situation in that section. Prices of hay to growers this season, as com pared with 1920, are reported by the United States Department of Agriculture as follow s: Alfalfa Loose H ay (per ton ) California .. .$ 9.00 6.70 O regon ___ ■ 8.00 Utah 7.00 W ashington . 8.50 (per to n ) 1920 1921 1920 $ 20.00 13.50 16.60 $ 9.70 7.70 $21.90 15.21 16.50 14.00 22.90 1921 8.10 12.00 6.30 10.00 20.70 An increased yield from a somewhat smaller acreage is indicated by preliminary estimates of the 1921 crop of beans in California Beans when compared with 1920 figures. (Figures include lima beans and all others. Bags of 100 pounds each.) 1921 1921 Production (tons) Percentage Baled 487,000 4,414,000 2,180,000 753,000 2 ,222,000 1,524,000 2,409,000 59 49 17 13 Arizona .......................... ................ California ...................... ................ Idaho ............................... ................ Nevada ........................... ................ O r e g o n ........................... ................ Utah ................................. ................ W ashington ................. ......... . . . 20 18 36 The hay market has been sluggish and growers have experienced difficulty in dispos ing of their crop, due to several factors, the C o n d itio n s 1920 Estimated acreage___ 280,000 acres Estimated y ield ........... 2,300,000 bags 285,000 acres 1,710,000 bags H oldover stocks of 1920 crop beans amounted to 537,810 bags when the new crop began to enter the warehouses of the state, according to figures compiled by the California Bean Growers Association. The 1921 grow ing and harvesting season was generally favorable, although a frost in early September did considerable damage to (B) Milling— f --------------------Output-------------------- > N o . M ills Reporting September October California .... 9 Idaho .............. .. 4 Oregon ......... , , 26 W ashington .. . . . 2 4 District .......... . . . . 63 October September (barrels) (barrels) 28 302,790 15,543 224,340 454,652 358,775 18,538 144,901 448,418 64 997,325 970,632 10 5 21 Per Cent M ill Capacity in Operation October September October 1921 1921 1920 71.0 50.8 65.5 68.0 75 45 50 65 49.8 50 52 61.9 63 51.5 ., Federal R eserve B ank of San 5 F r a n c isc o the grow ing crop in the Stockton Delta dis trict, and although rains and fog gy weather have interfered with harvesting operations in the southern lima bean counties. Accurate figures on production by varieties are not now available but it is stated that this year’s yield of white beans is proportionately much smaller than last year and that the yield of colored beans is actually much larger than last year. The California Lima Bean Growers Association estimates the 1921 lima bean crop at 835,000 bags. There were 1,080,000 bags of lima beans produced in 1920. Informants advise that the market for small white beans has been active, that large white beans are m oving to market steadily and that demand for colored beans has been weakening throughout the year, with further declines in price during October. Growers are beginning to withhold the latter varieties from the mar ket. Lima beans are reported to have been readily salable during October, with small price advances recorded. Average market prices per hundredweight on the principal vari eties of beans are quoted for October, 1921 and 1920: October, 1920 October, 1921 Small W h i t e ............... P i n k s ............................. Red M exican............... Black E y e s .................. * L i m a s ............................ $ 5.00 4.85 4.70 4.50 3.75 5.10-5.50 $ 5.00 4.00 5.75 5.50 5.50 6.00-7.00 *Price to grower. Shipments of apples from this district up to November 1st totaled 24,783 carloads, com pared with 13,522 carloads during the corre sponding period of 1920. In all 32,722 Fruits carloads were shipped during the 1920 season. The 1921 apple crop of this district is now estimated to be 41,392,000 bushels, compared with 30,952,000 bushels in 1920, whereas the total apple crop in the United States is estimated at only 109,710,000 bushels, compared with 244,022,000 bushels last year. This year’s heavy crop matured rapidly and storage facilities in grow ing sections proved to be inadequate. Mid-season varieties were there fore forced on the market at the same time as the eastern barreled crop and the resulting temporary glut caused the market to weaken. Prices of early varieties of apples averaged con siderably higher than 1920 prices of the same varieties, but prices of late varieties now com pare unfavorably with those of last year at this time. Prices paid to growers thus far this season compared with prices paid for compar able grades and varieties in 1920 have been reported as follow s (all quotations for fancy grade apples of medium size) : 1921 (per box) 1920 (per box) K in g D avid................................................ $1.75 W inter Banana........................................ 2.05 Grimes G olden.......................................... 1.85 $1.40 2.25 1.40 Final figures on the heavy crop of Jonathan apples are not yet available but it is estimated that returns to the growers will be slightly in excess of last year’s figures, partly due to the better market and partly due to the predomi nance of large desirable sizes in this year’s crop. Growers of citrus fruits in California during the crop year ending October 31st shipped 48,350 carloads of oranges (including grape fruit) and 11,797 carloads of lemons according Carloads Carloads 17000 16000 ji I \ 15000 14000 i I 13000 \ \ 15000 14000 13000 11000 /, I / 1 / \ / 9000 / 7000 A 5000 / 4000 y 3000 A J / V ZO O O IÖ O O 4 tous / \ / \/ / / ✓ 5 6 \ 192£) A 1 I \ 1 / 2 3 /„ CITR J S 1 1/ / V ; .* / -i i ~h i fA \ / 7000 f 6000 V >\ /' V J / f 7 8 9 10 II 12 ' 2 3 Ar IS>21 5 6 7 8 9 IO California Fruit Shipments 1920*1921 to figures compiled by the California Fruit Growers Exchange. The follow ing table shows the carlot shipments of citrus fruit from Cali fornia during the past three fiscal years (citrus fruit fiscal year— September 1st to August 31st), and the estimated shipments to be made during the 1921-1922 year. Oranges (cars) Season Season Season Season of of of of 1921-1922*.......... 54,000 1920-1921............ 45,236 1919-1920............ 38,077 1918-1919............ 35,913 Lemons (cars) Total (cars) 14,750 11,659 8,680 9,963 68,750 56,895 46,757 45,876 *Estimated. Exchange growers are reported to have re ceived an average of $2.36 per box for oranges and $2.55 per box for lemons delivered at the packing house during the 1920-1921 season compared with $6.20 per box for oranges and $0.95 per box for lemons in the 1919-1920 season. R e s p o n d in g to a n a c tiv e d e m a n d a n d fa v o r e d 6 A g r ic u ltu r a l a n d B u s in e s s by excellent shipping weather, the grape growers of California have shipped 29,515 cars of wine and table grapes during the present season up to and including November 5th. In the same period last year 25,809 cars were dispatched to market. A s was the case last year, the record movement is largely due to heavy shipments of wine grapes which were form erly utilized by wineries in the grape grow ing sections. Carlot shipments of grapes for the past four years have been reported as Y ear C a rs *1921.................. 1920.................. 1919.................. 1918.................. Percentage In crea se O ve r P reced in g Y e a r 30,000 26,923 21,605 16,639 11.4 24.6 29.8 25.5 ‘ Estimated. The grape season is now practically over and only small quantities of the later varieties of table grapes remain to be moved to market. Crop estimates indicate that production of wine and table grapes was considerably smaller than last year, a damaging frost early in the grow ing season, and an extremely hot spell during the ripening period having cut down the expected yields. A total output of 250,000 tons of wine grapes and 138,000 tons of table grapes is reported for the season, compared with yields of 380,000 tons of wine grapes and 160,000 tons of table grapes in 1920. Returns to growers have been approximately the same as last year when it is estimated that growers received an average net return of $75 per ton for table grapes and $65 per ton for wine grapes. C o n d itio n s Latest estimates place the 1921 crop of rais ins in California at 130,000 tons as compared with 180,000 tons in 1920 and 182,500 tons in 1919. Although the production of raisins this season has been light, the quality is reported exceptionally high, due to a favorable drying season. The carryover of 1920 crop raisins estimated to have been 24,458 tons on October 1st was reduced to 14,500 tons on November 1st and is reported to be strongly held in view of the present season’s small yield. It is esti mated that the price to growers this year will be 11 cents per pound for Thom psons and 9 cents per pound for Muscats, compared with estimated actual payments of \Ay2 cents per pound for Thompsons and 1 1 % cents per pound for Muscats in 1920. Picking of the 1921-1922 crop of California olives has begun and the total yield is esti mated to be the same or slightly less than last year when approximately 10,000 tons O lives of olives were produced. Government reports state that the condition of the crop is spotted, fair yields being expected in some districts and a light crop in others. The prevailing prices to growers are reported to be from $80 to $100 per ton for pickling olives and from $25 to $40 per ton for the vari eties normally used in making olive oil. These prices are practically the same as those received last year. Because of large holdover stocks and a comparatively small consumer demand, the requirements of olive packers are reported to be extremely light. Commercial factors state that there has been a slight increase in the volume of sales of ripe (C) Receipts o f Livestock— C attle O c t., 1921 Ogden .................. 10,827 Portland .............. 12,299 Salt Lake C it y .. . 8,761 Seattle ................. 4,455 3,537 Spokane .............. Tacom a ............... 1,867 T otal ................ 41,746 C a lv e s O c t ., 1920 H ogs S heep H orses and M u le s O c t ., O ct. 1921 1920 O ct., 1921 O ct., 1920 O c t., 1921 O ct., 1920 O c t ., 1921 O c t., 1920 276 915 417 388 710 317 11,015 11,638 5,038 6,377 3,053 4,646 3,330 12,247 1,737 7,719 3,756 2,427 44,916 27,770 53,017 14,896 11,309 3,860 90,940 16,513 127,252 5,919 27,420 4,748 49 1,868 272 1,045 508 401 777 318 34,366 3,321 3,023 41,767 31,216 155,768 272,792 6,323 11,431 3,806 5,839 5,099 8 0 899 42 0 26 80 33 164 0 0 163 1,138 (D) Range in Livestock Prices— W eek of October O ctober October October October H ig h e st and L o w e st A v e ra ge T o p P rice s P er H u n d red w eigh t R e ce iv e d at A b o v e M ark ets D u rin g O c t o b e r . F at Steers C ow s C a lv e s H ogs 3 ................. $5.00— 6.00 10................. 5.00— 6.50 17................. 4.50— 6.50 2 4 ................. 5.00— 6.50 3 1 ................. 5.00— 6.50 $3.75— 5.00 3.75— 5.50 3.75— 5.50 3.75— 5.50 3.75— 5.50 $7.00— 11.00 7.00— 11.00 7.00— 11.00 7.00— 11.00 6.50— 11.00 $7.60— 10.50 7.85— 10.00 7.85— 11.00 7.35— 10.50 7.30— 10.00 L am bs $5.00— 6.50 5.00— 7.00 5.00— 7.00 5.50— 7.00 5.75— 7.00 F ederal R eserve Bank of San olives in recent months. Last year growers were forced by market conditions to send ap proximately half of their pickling olives to oil manufacturers. Imports of olive oil during the first nine months of 1921 were 4,904,567 gal lons, compared with 3,245,059 gallons imported in the first nine months of 1920, and 7,365,207 gallons imported during the corresponding period in 1919. Practically all cattle and sheep in this dis trict have been driven to winter ranges and grazing conditions are reported to be above normal, although rainfall is now Livestock needed to start growth of winter and spring feed. The movement of animals to market has been heavy. Receipts of livestock at the principal markets of this dis trict during October show a large seasonal in crease over the preceding month and, in the case of cattle and calves, an increase over the corresponding month a year ago. October re ceipts of livestock at six of the principal mar kets of this district are shown in table “ C” (see opposite page). Livestock prices in this district did not change materially during O ctober with the exception of a slight decline in the price of hogs. The range of livestock prices at six of the principal markets in this district is shown in table “ D ” (see opposite page). Restocking of farms and ranges, expected to follow the depletion of herds and flocks which occurred during the past two years, continues to be delayed. Figures published by the United States Department of Agriculture show a de crease of 43.0 per cent in stocker and feeder shipments from eight markets of this district during the first nine months of this }^ear com pared with the corresponding period in 1920. Shipments of stocker and feeder animals from the same markets were 17.7 per cent less in 1920 than in 1919. A similar situation is re ported for the United States as a whole. Cold storage holdings of butter were further reduced during October, net withdrawals at the four principal markets of the district amounting to 844,682 pounds. Dairy Products Holdings at the same mar kets, reported on November 1, 1921, were 940,032 pounds, compared with 2,722,200 pounds on November 1, 1920, a de crease of 1,782,200 pounds or 60.5 per cent. The wholesale price of 93 score fresh creamery butter in the San Francisco market advanced from 46^2 cents on October 1st to 48 cents on November 1st. The present market is reported dull, with heavy shipments of Canadian butter entering the district and seasonal imports of 7 F r a n c isc o Australian butter expected later in November. A statement of the movement and holdings of cold storage butter is shown in table “ E.” The average price paid to milk producers during October, 1921, by fluid milk distributors (presented in table “ F ” ) increased 14 cents per 100 pounds in the Mountain Section and de creased 3 cents per 100 pounds in the Pacific Section compared with September, 1921, show ing a decline of $0.92 and $1.28 respectively compared with October, 1920. Manufacturers of condensed and evaporated milk report the market inactive with diminish ing export business, small domestic demand, and fairly heavy supplies. Shipments to for eign countries for relief purposes supported the market during August and September and exports from the United States were greater than in the corresponding months in 1920 for the first time this year. This temporary de mand was largely for evaporated milk and exports of sweetened condensed milk actually decreased, the reason assigned being the low price of sugar. The improvement discernible in the lumber industry during September continued in O cto ber, the demand for lumber showed a marked increase over the previous months of Lum ber this year and price advances were generally maintained. The follow ing factors are cited as the principal reasons for the strength of the lumber market during the past month. 1. An expansion of demand in the w ood working industries affecting all woods. 2. Larger buying of car material to repair damaged wooden railroad cars. (E) Movement o f Stocks o f Cold Storage Butter— City Los A n g e le s ... Portland .......... San Francisco. Seattle ............... Oct., 1921 O ct., 1920 Net N et Withdrawals Withdrawals (pounds) (pounds) 299,020 32,181 459,859 53,622 Total .............. 844,682 98,580 59,042 113,657 128,319 399,598 N ov. 1, 1921 Holdings (pouDds) N ov. 1 1920 Holdings (pounds) 280,295 96,997 424,098 138,642 763,032 425,356 809,320 724,492 940,032 2,722,200 (F) Prices Received by Milk Producers*— O ct., O ct., Sectionf 1921 A verRange Mountain (9 M k ts .). .$1.73-$3.03 Pacific (10 M k t s . ) . . . . 1.82- 3.28 U. S. (110 M k t s . ) . . . . 1.35- 6.55 $2.33 2.57 2.55 Sept., O ct., 19211921 1920 A v er- Averageage age $2.19 2.60 2.53 $3.25 3.88 3.80 *A11 prices per hundredweight for milk testing 3.5 per cent butter fat. _ f Mountain section includes Idaho, Utah, Nevada and Arizona. Pacific section includes W ashington, Oregon and California. 8 A g r ic u ltu r a l a n d B u s in e s s 3. Increased yard buying, sustained by an active demand for building materials, espe cially in California. 4. Increased export shipments of lumber, especially to Japan. Statistical statements of the four lumber as sociations in this district support this general summary of conditions in the lumber industry. Orders received by 161 reporting mills totaled 441.221.000 feet, an increase of 72,128,000 feet, or 19.5 per cent over September and of 173,496.000 feet, or 64.8 per cent over October, 1920. The reported volume of orders received was 18.9 per cent greater than actual produc tion, 12.2 per cent in excess of shipments, and represented the largest amount of business booked in any one month since March, 1920. The O ctober cut of the same mills was 380.406.000 feet, an increase of 33,687,000 feet, or 9.0 per cent compared with the preceding month and only 53,765,000 feet, or 12.3 per cent less than in October, 1920. Production, which was 75 per cent of normal one month ago, is now estimated as 85 per cent of normal. Ship ments made during the month amounted to 392.970.000 feet which was approximately 22 per cent greater than shipments in September, 1921, and October, 1920. JON5 OF BOA,RDF pA *DFE Eft1 500 / K ♦00 s A y* s \ \/ / / ?0DU:no N, \ JK ? \ V \ \ \ \ 100 f" ) \ "TS\ \ V A / £y \ v ' / ii' 300 200 y ~7s2 "92Ö Lumber Production, Orders Received, and Shipments in Twelfth Federal Reserve District as Reported by Four Lumber Associations, 1920-1921. L oggin g operators report that from 75 to 80 per cent of the normal output of logs is being produced and that nearly all logging camps in (G) Lumber- West Coast Lumbermen’s Association Average JNo. Oct. 29 of Mills 102 reporting . . . . 267,751 Cut* ................ 266,018 Shipments* . . 300,674 Orders* . . . . *In thousands o f feet. Western Pine Manufacturers* Association the Grays Harbor, Tacoma, Columbia River, Puget Sound, Inland Empire and California districts are operating. The demand for logs is about equal to the supply available, which is approximately 30 per cent less than in October, 1920. Present indications are that all available rafts of logs will be sold before the winter cessation of camp activities. The shingle branch of the industry is again curtailing production. Decreased demand caused several shingle mills to close down and the market for shingle logs narrowed accord ingly. W holesalers attribute this decline in the demand for shingles to the unwillingness of the trade to meet recent price advances, while the mill operators hold the opinion that the fall demand has been satisfied and that the lull in buying should be expected at this season of the year. Comparative figures of cut, orders and ship ments of the reporting mills of the four lumber associations in this district are shown in table “ G.” Reports received by this bank from ten mines in the district, engaged in the production of gold, silver, lead and copper, show a small de crease in the output of gold, silver M ining and lead in September, 1921, com pared with August, and an increase compared with September a year ago. The September output of reporting copper mines was slightly greater than the production in August, 1921, and September, 1920. No further improvement in the gold and silver mining industries was reported during October and the copper mining industry con tinues greatly depressed. A t the present time only tw o of the large producers of copper are taking out ore whereas in previous years 15 of the largest mines in the country operated in this district, producing 56 per cent of the out put of blister copper in the United States in 1913, 60 per cent in 1917 and 61 per cent in 1920. Conditions in the lead mining sections are in CaliforniaWhite and Sugar Pine Manufacturers* Association California Redwood Association O ct. 1 O ct. 29 Oct. 1 O ct. 29 O ct. 1 O ct. 29 O ct. 1 102 41 59,438 77,790 89,226 45 70,388 71,146 76,550 7 22,417 25,067 18,981 5 13,105 12,422 13,895 11 10 30,800 24,095 32,340 28,275 19,782 24,022 234,950 217,638 254,626 C o n d itio n s O ct. 29 161 380,406 392,970 441,221 O ct. 1 162 346,719 320,988 369,093 F ederal R eserve B ank of San F r a n c isc o 9 sharp contrast to prevailing conditions in the copper districts. The lead mines of Utah and Idaho, which produce approximately 50 per cent of the United States production of lead, are operating at full capacity. A ccording to reports, the domestic demand for lead is strong, consumption of lead is outrunning production, and smelters will enter the winter season with smaller stocks than usual. Reporting gold, silver and lead mines are operating at approxi mately 100 per cent of capacity and those cop per mines now producing are operating at 66 per cent of capacity. Comparative figures of the output of metal of ten reporting mines in September, 1921, August, 1921, and September, 1920, are shown in the follow ing ta b le : Sept., 1921 ♦Copper ( l bs . ) . . . 5,353,541 Lead (lb s .)......... 10,005,669 Silver ( o z .) ......... 339,790 Gold ( o z .) ........... 26,187 A u g., 1921 Sept., 1920 5,336,756 11,369,162 417,464 33,563 5,215,983 7,926,043 279,368 23,739 ♦Blister. The most important feature of this month’s operations in the oilfields of California was the practical settlement of the oil workers’ strike in the San Joaquin Valley fields, Petroleum after nearly tw o months of dispute over wage adjustments and work ing rules. W ork is now being resumed on all leases. A s a result of this strike, production of petroleum in California was greatly curtailed and in October averaged 227,957 barrels per day, the smallest figure ever reported to this bank. In September, 1921, the average daily production was 264,314 barrels and in Septem ber, 1920, 305,102 barrels. Consumption also decreased during O ctober but was considerably in excess of the lowered output and although October daily shipments of 245,861 barrels were 23,727 barrels less than daily shipments in September, stored stocks were reduced by 555,039 barrels, to a total of 33,116,456 barrels held at the end of October, 1921. Thirty-two new wells with an initial daily production of 14,825 barrels were completed during October and one well was abandoned, a net increase of 31 producing wells during the month. Statistics on oilfield operations as furnished by the Standard Oil Company of California are shown in table “ H .” Millions of Barrels Millions of Barrels 34«,000 3*0,000 /\ f'-r, /sV r ,f AÏ D A !AC -J -N 310,000 \ 1k ER i61 ,L- P»01■uc 2501000 2*0nnn smnnn afnnnn am m 200.**0 Barrels 340,000 330,000 <t: AIL / 310 0 0 300 000 290,000 270,OOO ...» 30 20 10 —SI Of EC sT<i>c cs 20 10 9IS 92C> 270,000 4 jJJ 'J t9;21 y, 250,000, \ l2 ,cZ Petroleum Production, Shipments, and Stored Stocks (California) 1919-1921 Sales of electric energy for industrial pur poses during September, as reported to this bank by eight of the principal power producers in California, were 4.7 per cent less Electric than in the previous month and 4.5 Pow er per cent greater than in September, 1920. Sales in the San Joaquin V al ley and in southern California continue to exceed sales of last year, while sales in north ern California remain slightly less than those of a year ago. A seasonal decrease in the needs of agricul tural users of electric power, experienced at the harvest season each year, was in a large measure responsible for the decline in the total volume of September sales compared with August, 1921. Sales for agricultural purposes decreased approximately 13.5 per cent during the month and were slightly less than in Sep tember, 1920. The effect of the oil workers’ strike in the San Joaquin Valley, which began early in September, was shown in greatly dim inished sales to the oil industry in that section. Continued improvement was noted in sales to the mining industry. The total output of electric energy of the reporting companies during September, 1921, decreased 10.4 per cent compared with August, (H) Petroleum — October, 1921 Production (daily a verage)...................... 227,957 bbls. Shipments (daily average)......................... 245,861 bbls. Stored Stocks (end of m o n th )................ 33,116,456 bbls. N ew W e lls O pened...................................... 32 W ith Daily Production........................... 14,825 bbls. W e lls Abandoned............................................ 1 September, 1921 264,314 bbls. 269,588 bbls. 33,671,495 bbls. 47 8,690 bbls. 5 October, 1920 305,102 bbls. 335,729 bbls. 22,545,026 bbls. 47 12,395 bbls. 4 10 A g r ic u ltu r a l a n d B u s in e s s 1921, and increased 35.7 per cent compared with September, 1920. This large increase within the past year is due to the construction of a number of new hydro-electric producing plants and to the greater abundance of water this year. Statistics on the electric power industry in the state of California, as reported by eight of the principal pow er companies, are shown in table “ I.” A ccording to reports received by this bank from the seven states of this district there was little change in the amount of employment dur ing October. Completion of the harLabor vest season and winter suspension of work on highways and other public improvements resulted in increased unemploy ment in some sections, principally in unskilled labor. This numerical increase in unemploy ment in certain local areas has been offset by increased activity in the building trades, manu facturing industries, and those agricultural sections of the district which have a com paratively late harvest season. Steady improvement is reported from indus trial centers. The m onthly report of the United States Em ploym ent Service, Depart ment of Labor, based on reports from manu facturing firms em ploying 500 men or more, shows the follow ing changes in October com pared with September for the cities of this district: ^ ... N u m erical increase in P ercentage increase in e m ploym ent during O c t o b e r com pared w ith S eptem ber Los A n g e le s ... San Francisco. ^Seattle .............. P ortland ......... em ploym ent during O cto b e r com p ared w ith S eptem ber 4.0 5.1 1.4* 953 312 34* 156 2.0 ♦Decrease. In California the month of October w it nessed the customary cessation of seasonal activity in the agricultural districts and an un usual demand for skilled laborers in the build ing trades. The oil workers’ strike in the San Plant C a p a city K. V . A . A u g ., Sept., S ept., 1920 1921 1921 T y p e o f Plant (a) (b) (c) H ydro Power ......... ............ Steam ........................ ............ Purchased ................ Total 657,575 350,045 ............................ ............ 1,007,620 C o n d itio n s Joaquin Valley oilfields which began in Sep tember has been practically settled and it is stated that work is being gradually resumed on all leases. Continued depression in the mining, smelting and allied industries has retarded improvement in the labor situation in Arizona, Nevada and Utah. Increased demand for labor in the cotton fields and in railroad maintenance projects has materially relieved the situation in Arizona. Some better ment is also noted in conditions in Utah and the total number of unemployed is now esti mated to be less than one month ago and ap proximately 50 per cent less than six months ago. In Oregon and W ashington, agriculture appears to be in a flourishing condition and the farms of these states have offered temporary employment to many workers. The Pacific Northwest also reported increased demands for skilled labor in the building trades and in the lumber industry. Part time employment which was resorted to during the past eight months in many indus trial plants and trades in many of the cities in the Twelfth Federal Reserve District has been largely discontinued. Those industries which were operating on a part time basis have either reduced their forces of workmen or have ceased operations entirely. The United States Bureau of Census figures of the results of the census of manufactures in the state of California for California 1919 and 1914 are presented in Manufactures table “ J” (see opposite page). The summary shows a con sistent increase during the period of 1914-1919. A ccording to reports of the United States Department of Labor, the cost of living in the United States decreased 1.7 per cent from May, 1921, to September, Cost o f Living 1921, the reductions in four of the principal cities in this district included in the summary being Seattle, 2.6 per cent; San Francisco, 1.3 per cent; Los P ea k loa d R . W . Sept,. A u g ., S ept., 1921 1921 1920 Sep t., 1921 Plant O u tp u t K . W . H . A u g ., S ept., 1921 1920 635,575 342,825 499,425 315,720 404,290 184,614 53,450 419,060 176,130 51,287 302,347 210,612 49,130 111,501,734 272,100,350 237,524,497 122,486,997 70,157,706 71,413,639 35,240,765* 26,053,893* 34,553,902* 978,400 815,145 642,354 646,477 562,089 307,682,203 343,513,989 233,988,731 N u m b er o f Industrial C o n su m e rs and Sales: N u m b e r o f Industrial C o n s u m e rs ! S ep t., A u g ., S ep t., 1921 1921 1920 41,694 41,159 38,141 *N ot included in total plant output. JSeven companies reporting. §S ix companies reporting. C o n n e c te d Industrial L o a d H . P.£ S ep t,, A u g ., S ep t., 1921 1921 1920 1,309,979 1,295,715 1,196,762 S ept., 1921 215,513,533 Industrial Sales K . W . H . A u g ., 1921 226,201,183 S ep t., 1920 206,193,933 Federal R eserve B ank of San 11 F r a n c isc o Angeles, 1.1 per cent; Portland, 1.0 per cent. A tabular statement and chart of these changes and a comparison with figures for the high point of last year and with the low point of December, 1915, fo llo w s : (Costs of food, cloth ing, housing, fuel and light, furniture, and mis cellaneous items are included in the total cosi of living on the basis of December, 1914, prices equal 1 0 0 ) . Per Cent D e c ., 1915 Los An g e l e s . . . Portland ........... San Francisco.. Seattle ............... United S ta te s.. . 98.1 . 96.9 . 98.3 . 99.0 .104.9 H igh June, 1920 201.7 200.4 196.0 210.5 2 12 .1 M ay, 1921 Sept., 1921 D e clin e from H igh 178.7 162.2 166.7 180.2 178.1 176.8 160.5 164.6 175.5 175.0 12.3 19.9 16.0 16.6 17.4 During the four months period ending September 1, 1921, the cost of food rose in all reporting cities of this district. Housing costs also rose slightly except in Seattle and charges for fuel, light and miscellaneous articles remained practically stationary. The costs of clothing and of furniture and furnish ings showed marked declines in all cities. Similar trends were observed in the United States as a whole. Retail trade, as reported by 33 represen tative department stores and mail order houses in eight cities of this district, averaged 6.3 per cent less by value of sales durRetail ing October, 1921, than in October, Trade 1920, and 11.6 per cent greater than in September, 1921. The same stores report that prices continue 10 to 30 per cent below those of one year ago, a decline in excess of the percentage of decline in the value of sales, indicating that the physical volume of trade is now greater than it was last fall. Comment upon this fact has been made in the last six issues of this report. The amount of the average sale (cash, charge and C. O. D.) reported by ten firms was $2.95 in October compared with $2.90 in September and $3.18 in October, 1920. Following is a statement of the average sale (cash, charge and C. O. D.) in Los Angeles, San Francisco and Seattle: O ct., 1921 District ................$ 2.95 $ 4.05 $ 2.90 $ 3.18 C en su s 1919 O ct., 1920 $ 2.97 3.18 2.39 2.08 It has been suggested that the difference in amount of the average sale in the three cities may be due to the inclusion in some depart ment stores of furniture and rug departments, in which the average sale is of large amount. (J) California Manufactures— Number of establishm ents...................................... Persons engaged in manufactures...................... Proprietors and firm m em bers......................... Salaried employees ............................................... W a g e earners (average n u m ber).................... Primary h o r se p o w e r ................................................. Capital .............................................................................. Services ........................................................................... Salaries ....................................................................... W a g e s .......................................................................... Materials ......................................................................... Value of Products...................................................... Value added by manufacture (value of product less cost of materials) Sept., 1921 Los A n g eles............ $ 2.94 San Francisco........ 3.31 Seattle ...................... 2.59 1914 Per C en t o f Increase 1914-1919 11,943 296,999 12,460 40,745 243,794 768,858 $1,333,382,000 380,135,000 75,612,000 304,523,000 1,218,890,000 1,981,443,000 10,057 176,547 10,429 26,637 139,481 491,025 $736,105,000 140,843,000 35,230,000 105,613,000 447,475,000 712,801,000 19.5 53.0 74.8 56.6 81.1 169.9 114.6 188.3 172.4 178.0 762,553,000 265,326,000 187.4 18.8 68.2 12 A g r ic u ltu r a l a n d B u s in e s s C o n d itio n s The value (selling price) of stocks of reporting firms averaged six-tenths of 1 per cent greater at close of October, 1921, than at close of September, 1921, and 16.8 per cent less than at the close of October, 1920. Stocks now held by department stores are approximately normal, the decline in value compared with last year being mainly due to declines in prices. Average stocks on hand at the close of the four months’ period ending O ctober 31, 1921, amounted to 464.9 per cent of the average monthly net sales during the same period, indicating a rate of turnover of stock of 2.58 times a year. Outstanding orders at the close of October, 1921, were 7.0 per cent of the total purchases during the year 1920. Collections were characterized by report ing firms as fo llo w s : Excellent N e t Sales of 22 Department Stores in Twelfth Federal Reserve District (in M illions of Dollars) Good Fair Poor 0 10 Statements of increases or decreases in the value of net sales of 33 representative depart ment stores and mail order houses during October, 1921, compared with September, 1921, and October, 1920, and the four months’ Number of Firms 3 14 (K) Retail Trade Activity— CONDITION OF RETAIL TRAD E D URING OCTOBER, 1921 In Federal Reserve District No. 12 (33 Stores Reporting) Los Angeles Percentage increase or decrease (— ) of net sales during O cto ber, 1921, over net sales during same month last year.................... Percentage increase or decrease (— ) of net sales during O cto ber, 1921, over net sales during September, 1921 ................................ Percentage increase or decrease (— ) of net sales from July 1, 1921, to O ctober 31, 1921, inclu sive, over net sales during same period last y ear.................... Percentage increase or decrease (— ) of stocks close of O cto ber, 1921, over stocks at close of same month last y ear................ Percentage increase or decrease (— ) of stocks close of O cto ber, 1921, over stocks at close of September, 1921........................... Percentage of average stocks close of each month this season to average m onthly net sales during same period......................... Percentage outstanding orders close of October, 1921, to total purchases during year 1920......... 4.4 Oakland — Sacramento Salt Lake City San Francisco — 4.6 — 20.9 — 1.0 15.1 20.6 46.6 4.3 18.1 .9 — 9.5 — 9.9 — 17.2 — 3.4 — — 17.6 — 17.5 1.8 Seattle Spokane District — 20.5 6.3 18.5 11.6 -13.5 — 12.2 — 9.0 — 25.1 — 19.9 — 16.8 — 12.9 .5 2.5 3.7 1.0 2.3 1.4 1.1 .6 462.6 463.7 457.6 513.6 441.2 400.2 517.6 464.9 8.3 5.0 7.0 8.0 6.2 6.0 7.0 Federal R eserve B ank of San 13 F r a n c isc o period ending October 31, 1921, compared with the same period in 1920 are shown in table “ K ” (see opposite page). Trade at wholesale continues fair in the opinion of wholesale dealers in the Twelfth Federal Reserve District. Reports from 187 wholesale firms in ten lines of W holesale business show that the dollar Trade values of October sales in all lines except furniture were less than in October, 1920, by percentages ranging from 1.1 per cent in drugs to 43.1 per cent in agri cultural implements. Sales of wholesale fur niture dealers were 7.5 per cent greater than in O ctober of last year. The average net in creases or decreases (— ) in the value of net sales for the ten reporting lines of business were as fo llo w s : Ten months ending Agricultural O ct., 1921, Oct. 31,1921 compared with compared with same O ct., 1920 Sept., 1921 period in 1920 Implements . . — 43.1 Auto S u p p lie s... — 9.7 Auto T ir e s.......... — 9.6 Drugs ................... — 1.1 D ry G oo d s.......... — 9.3 Furniture ............ 7.5 Groceries ............ — 22.1 Hardware ........... — 23.0 Shoes .................... — 9.1 Stationery .......... — 25.7 — 23.4 — 5.1 — 14.6 7.0 — 8.6 6.0 7.1 — .7 — 7.6 — 9.2 — 49.9 — 20.9 — 16.1 — 10.0 — 32.2 — 26.5 — 25.5 — 31.5 — 24.6 — 23.2 One hundred and fifteen wholesale firms in all reporting lines of business reported the per centage of their collections during October, 1921, to the total amount due from customers (outstanding) on October 1, 1921, and 1920 as follow s: Number of Firms Agricultural Im plem ents. 10 Auto Supplies...................... 18 Auto T ir e s ............................ 11 5 D ry G oo d s............................. 6 Furniture .............................. 10 Groceries ............................. 16 Hardware ............................. 17 Shoes ...................................... 11 Stationery ............................ 11 O ct., 1921 Sept., 1921 O ct., 1920 24.2 58.2 62.2 65.0 47.0 52.9 34.2 60.1 63.7 82.0 38.8 59.5 74.4 51.2 36.9 55.6 41.7 61.1 64.9 67.0 49.3 54.2 73.7 49.9 48.9 59.6 68.1 42.7 41.8 57.6 Present prices compared with those of one year ago are reported to be from 10 to 40 per cent lower in all lines. No general trend of prices was evident during the past month, some dealers reporting increases and others decreases as compared with September. An exception to this statement may be noted with regard to agricultural implement prices which were reduced from 10 to 20 per cent in October. Collections were reported excellent by eight firms, good by 65, fair by 77 and poor by 16. Statements of increases or decreases in the net sales of reporting wholesale firms during October, 1921, compared with October, 1920, and the first ten months of 1921, com pared with the first ten months of 1920, are shown in table “ L .” (L) Wholesale Trade— (la) Percentage increase or decrease (— ) in net sales during October, 1921, compared with October, 1920 Agricultural Number of re Implements porting firms . . 22 Los An g e l e s . . . . — 2 .9 Portland ........... — 6 0 .9 Sacramento . . . Salt Lake City. I— 4 6 .4 San Francisco.,. . — 3 3 . 7 Seattle ................ Spokane ........... — 5 6 .6 Tacom a ............. District ................. — 4 3 .1 (lb) — — — — — 20 1 .8 1 7 .8 1 5 .6 2 4 .0 1 9 .3 1 2 .7 Drugs Auto Tires 12 — 6 .3 * 5 .0 3 0 .4 11 — 2 3 .2 2 1 .3 Dry Goods Furniture 11 15 — * 8 .4 — 5 .3 — 9 .7 — * 9 .6 — ‘ i. i — * 9 .3 Agricultural Auto Supplies 20 — 1 1 .2 Auto Tires 12 Drugs 11 D ry Goods 11 — 2 6 .3 — 2 0 .7 — 2 8 .7 — 2 4 .1 .1 1 2 .0 Ü .9 — 1 2 .7 — 3 3 .9 — 2 3 .2 1 6 .4 7 .5 — 2 9 .9 — 3 1 .8 — 2 2 .1 — — — — — — — 3 6 .0 — 2 Ò .9 1 to October Furniture 15 — 2 3 .8 — 3 Ì .3 — 1 5 .6 — 2 3 .5 — 1 6 .1 — 2 5 .6 — .0 0 1 ,. — 2 9 .8 — 3 9 .9 Hardware 23 — 2 .5 — 3 0 .5 — 1 9 .1 — 1 3 .1 Groceries 29 — 9 .2 — 2 3 .5 6 .3 Percentage increase or decrease (— ) in net sales for January same period last year Number of re Implements 22 porting firms . . Los An g e l e s . . . . — 5 7 .1 Portland ........... — 5 3 .8 Sacramento . . . . Salt Lake City., . — 4 7 .7 San Francisco. . . — 4 8 .8 Seattle ............... Spokane ........... " — 4 i . 6 Tacom a ............ District ............. — 4 9 .9 Auto Supplies — 3 4 .0 ., .. ., ., — 3 4 .9 — 1 0 .0 — 3 2 .2 — 2 6 .5 — 2 3 .0 — *9.1 Stationery 27 — 1 9 .0 — 3 4 .4 — i 8 .2 — 2 9 .9 2 3 .4 — 2 9 .3 — 2 9 .0 — 2 5 .7 compared with the Hardware 23 — 1 0 .6 — 3 1 .5 — 2 4 .5 — 3 2 .1 — 2 0 .7 — 2 1 .8 — 3 8 .8 — 3 0 .2 — 3 9 .2 — 3Ó .1 — 2 7 .8 — 2 5 .5 — * ’ .0 6 — ’ 7 .0 — 7 .1 29 — 3 2 .9 — 2 5 .4 17 1 2 .3 3 1 .2 3 2 .4 2 3 .8 3 1 .6 3 1 .1 31, 1921, Groceries Shoes Shoes Stationery 27 17 ,, — 3 4 .1 — 1 8 .3 — 2 6 .1 .. •c — 2 Ó .4 — 3 4 .8 — 2 8 .7 — 1 5 .5 .. — 3 1 .5 — 2 4 .6 — 2 9 .7 — 2 6 .1 — — — — 1 8 .5 1 8 .1 2 2 .3 2 3 .2 14 A g r ic u ltu r a l a n d B u s in e s s Construction activity in this district during O ctober passed all records both in the number and the value of building permits issued and continued the rapid increase in the B uilding volume of building operations Activity which began last July. Building permits issued in 20 principal cities of this district during October, 1921, num bered 11,442 with an estimated valuation of $23,333,741, exceeding the previous record month of September, 1921, by 373, or 3.3 per cent in number, and by $3,198,748, or 15.8 per cent in value. Compared with October, 1920, the figures for October, 1921, r e p r e s e n t an increase of 2,982, or 35.2 per cent in num ber and of $8,965,832, or 62.4 per cent in value. Again, com paring October, 1921, with the same month last year, increases occurred in all reporting cities with the exception of Boise, Ogden, Phoenix, San Jose, Seattle and Stockton. The greatest increase was reported from Sacramento (261.8 per cent) and the great est decrease from Phoenix (71.4 per cent). Declining prices of many building materials and reduced labor costs are reported to be C o n d itio n s the principal factors in stimulating building activity in this district. Price cuts in many building materials have recently been made in the San Francisco Bay region and it is expected that a considerable amount of addi tional building will result. Comparative prices of representative building materials (F. O. B. San Francisco) on which reductions were an nounced October 1, 1921, are shown in table “ M .” The accompanying chart shows the num ber, total valuation and the average value of Building Permits Issued in 20 Principal Cities, Twelfth Federal Reserve District, 1920-1921 (M) New Building Material Prices* — N ew Price (Oct. 1, 1921) Lime (bbl.— 150 lb s .) ................................................ Face Brick (per 10 00 )............................................... H ollow Tile (per 1000)........................................... Fire Brick (per 1000)............................................... Roofing Tile (per sq u are)...................................... Sewer Pipe (12 inch— per fo o t )........................... Common Brick (per 1000).................................... $ Old Price 2.15 50.00 108.00 55.75 $ 21.00 .617 15.50 Peak Price 2.75 55.00 161.50 60.75 25.00 .657 16.50 $ 2.75 60.00 65.75 25.00 .756 18.00 1914 Price $ 1.50 34.00 40.ÓÒ 14.00 .364 7.90 *A11 prices F. O. B. San Francisco. (N) Building Permits— October, 1921 N o. Value Berkeley ........... Boise .................. Fresno ................ L o n g Beach L o s Angeles — Oakland ............. O gden ................ Pasadena ........... Phoenix ............. Portland ........... Reno ................... Sacramento . . . Salt Lake City. San D ie g o ......... San Francisco. San J o se............. Seattle ............... Spokane ............ Stockton .......... Tacom a ............ Total ......... September, 1921 N o. Value 242 434 4,489 673 53 371 56 1,441 26 318 119 417 672 76 960 271 129 394 371,326 91,457 345,468 2,127,360 9,781,394 1,245,220 111,565 1,123,131 75,914 1,942,510 42,375 489,226 284,610 1,016,873 2,498,523 116,890 750,115 442,205 225,770 251,809 148 117 193 387 3,931 719 50 387 80 1,571 33 287 125 415 631 76 1,146 268 105 500 11,442 $23,333,741 11,169 180 121 $ $ N o. 312,629 92,748 193,424 822,675 8,303,665 1,478,739 104,800 757,204 216,861 1,789,195 30,993 918,121 251,560 657,081 2,100,163 78,010 1,355,430 202,460 129,145 340,090 118 97 262 455 3,210 463 38 300 197 927 $20,134,993 October, 1920 Value 10.9 — 56.7 3.5 93.8 52.0 138.9 — 55.1 194.7 — 71.4 179.5 65.2 261.8 816 171 82 280 334,762 211,480 333,470 1,097,270 6,431,661 520,717 248,790 381,378 265,512 694,730 25,650 135,180 94,537 390,117 1,399,055 227,225 758,385 310,890 328,123 178,977 8,460 $14,367,909 62.4 12 154 59 335 418 66 $ Per Cent Increase or Decrease (— ) O ct., 1921 over O ct., 1920 201.0 160.6 78.6 — 48.5 — 1.0 42.2 — 31.1 40.6 F ederal R eserve B a n k of San 15 F r a n c isc o building permits issued in this district by months since January, 1920. Comparative figures of the number and value of building permits issued in 20 reporting cities during October, 1921, September, 1921, and October, 1920, are shown in table “ N ” (see opposite page). The total amount in all savings accounts in this district (as reported by 78 banks in the seven principal cities) increased during the month ending October 15th, Savings eight-tenths of 1 per cent, being Deposits on that date $754,370,000, compared with $748,544,000 on September 15th. The increase in savings deposits during the year ending October 15th was 5.8 per cent. The growth in savings deposits in this district and the changes in each of the seven principal cities are shown in the accompany ing table “ O .” It is to be noted that the figures are not exactly comparable with those pub lished in previous reports, the questionnaire upon answers to which the latest figures are based having defined the total amount in all savings accounts to include “ all deposits pay able after 30 days, all savings deposit accounts and certificates of deposit subject to not less than 30 days notice.” Previously figures were received for “ Savings A ccounts” only. Total liabilities of 136 failures in October, 1921, were $1,919,919, compared with liabilities of $4,299,056 for 126 failures in October, 1920, an increase of 10, or 7.9 per cent, Business in number and a decrease in amount Failures of liabilities of $2,379,137, or 55.3 per cent. Compared with Septem ber, the number of failures decreased by 56, or 21.9 per cent, and the amount of liabilities by $761,015, or 28.3 per cent. Liabilities of the average failure in the district were $14,117 -M U T 2IM A orF,.LU RE S \ L' 2\ \/ 7 NO. \ I j $ .r r • -r- K /As r V V \ 1 J z ,o loJ u / / V 200 A (SO A / '\ V . L .. * ? -4... / 5 30 > 9 9 ,o B u siness F ailures, T w e lfth F ed era l R e se rve D istrict, 1920-1921 Note — T he great increase in liabilities in June, 1920, was due to the failure of one concern in Seattle. Washington. compared with $34,119 in October, 1920, and $13,963 in September, 1921. R. G. Dun and Company's comparative figures of the number and liabilities of business failures in the states of this district are shown in table “ P .” (O) Savings Deposits*— P e r C e n t In crease o r D e cr e a s e (—) O ct. 15, 1921 over O ct. 15,1920 O ct. 15,1921 Sept. 15,1921 O c t . 15, 1920 6 $241,138 74,669 38,481 24,772 330,933 30,906 13,471 $237,380 74,743 38,737 24,988 328,163 31,101 13,432 $211,559 71,788 40,903 24,496 309,988 39,466 14,878 6.7 — 21.7 — 9.4 78 $754,370 $748,544 $713,078 5.8 N u m ber of B anks Los A n g ele s................. Oakland ....................... Portland ........................ Salt Lake C ity ........... San Francisco ............ Seattle ........................... Spokane ........................ 14 7 10 10 17 14 Totals .................... 13.9 4.0 — 5.9 1.1 * In thousand of dollars. (P) Business Failures— N o. Arizona .......................... .................... California ..................... .................... Idaho .............................. .................... 5 58 4 O cto b e r , 1921 L iabilities $ 54,000 755,456 79,057 Septem ber, 1921 N o. 9 228,426 38,255 764,725 28 40 80,600 1,075,026 169,953 5,000 214,944 144,586 990,825 $1,919,919 192 $2,680,934 88 16 1 O regon ................................................. 25 5 Utah ................................ .................... W ashington ................. .................... 39 District ........................... .................... 136 L iabilities 10 $ N o. 5 67 2 22 O cto b e r , 1920 L ia bilities $ 57,400 1,886,585 1,500,500 7 23 407*223 26,089 421,259 126 $4,299,056 A g r ic u ltu r a l a n d B u s in e s s 16 from Berkeley (10.1 per cent), Pasadena (2.5 per cent) and Los Angeles (2.0 per cent). A s for some time past, the largest decreases in bank clearings compared with corresponding months last year occurred in the cities of the Pacific Northwest, October clearings in four of the largest cities in that section being 20.4 per cent less than in October, 1920. Comparative figures of bank clearings for the 20 reporting cities are shown in table “ Q .” The slight easing of interest rates in the Intermountain region noted in last month's report, disappeared during the month ending November 10th, and the Interest and prevailing rates on all Discount Rates classes of paper is again 8 per cent. In Los Angeles and San Francisco the open market rate for prime commercial paper declined from to % per cent during O ctober and several banks in Seattle and San Francisco reported a decline of y?, per cent in their rates to customers. Rates elsewhere were unchanged. A statement of interest rates charged by banks in Federal Reserve Bank and Branch cities of this dis trict, tabulated for the thirty-day periods end ing November 5, 1921, and October 5, 1921, is given in table “ R ” (see opposite page). Effective November 2nd, 3rd and 4th, dis count rates at nine of the Federal Reserve Banks in the United States were reduced ^2 of 1 per cent, and at three of the banks 1 per cent. Bank clearings in 20 of the principal cities in this district during October totaled $1,559,429,000, an increase of $92,417,000, or 6.2 per cent, over September figures, and Bank a decrease of $255,462,000, or 14.1 Clearings per cent, compared with October, 1920, w h e n clearings figures reached their highest point ($1,814,891,000) for that record year. A percentage of decline of 14.1 per cent in bank clearings in a year when com m odity prices have declined approximately 37 per cent at wholesale and 20 per cent at retail, continues to indicate that the physical volume of trade in this district is greater than it was in October, 1920. The increase in O ctober compared with September of this year is a seasonal movement related to the market ing of farm products and the expansion of trade in the late fall. The only increases in O ctober of this year compared with October, 1920, were reported JONS - IONS /N \ / r \ \ \ s/ VV L_.2 ...3 s., 6 r Ö 9 V \ A \ ! \ V' \/ V 1700 N/ [y / 1600 tsoo 1200 •O '■ « ■ i ?, ..5 ,, T e ? ip Bank Clearings in 20 Principal Cities, Twelfth Federal Reserve District, 1920-1921. (in M illio n s of D o lla r s ) (Q) Bank Clearings*— October, 1921 Bakersfield ...........................................$ Berkeley ............................................... Boise ...................................................... Fresno .................................................. L o n g B each .......................................... L o s A n g e le s.......................................... Oakland ............................................... Ogden .................................................... Pasadena .............................................. Portland ............................................... Reno ...................................................... Sacramento ......................................... Salt Lake C ity .................................... San D ie g o ............................................. San Francisco..................................... San Jose................................................ Seattle .................................................... Spokane ............................................... Stockton ............................................... Tacoma ........................... ...................... Total ............................................. $1,559,429 *In thousands of dollars. 4,760 14,803 4,790 27,856 14,886 365,770 46,581 7,892 13,473 153,775 2,926 29,462 58,441 11,573 577,100 10,143 131,096 48,454 22,406 13,242 C o n d itio n s September, 1921 $ 4,365 14,452 4,816 22,945 14,387 336,748 43,564 6,817 11,881 141,181 2,803 24,737 52,574 11,360 551,600 7,618 131,887 48,221 21,801 13,255 $1,467,012 October, 1920 $ Per Cent Increase, or Decrease (—) O ct., 1921 over O ct., 1920 5,780 13,437 7,715 34,756 15,832 358,511 48,134 9,413 13,134 180,838 4,062 32,613 75,138 12,742 708,300 12,902 171,620 62,653 26,428 20,883 — 17.6 — 3.2 — 16.1 2.5 — 14.9 — 27.9 — 9.6 — 22.2 — 9.1 — 18.5 — 21.3 — 23.6 — 22.6 — 15.2 — 36.5 $1,814,891 — 14.1 10.1 — 37.0 — 19.8 — 5.9 2.0 Federal R eserve B ank of San 17 F r a n c isc o The follow ing table gives the present prevail ing rate at each bank and the prevailing rate prior to the recent change. Present Ruling Rate Name of Bank Boston ............................ .................... N ew Y o rk .................... ...................... Philadelphia ...................................... Cleveland ..................... ................ Richmond ..................... ...................... Atlanta ........................... ...................... Chicago .......................... ................ St. L ou is......................... ................ Minneapolis ................ .................... Kansas C ity .................. ................ Dallas ............................. .................... San Francisco ............ ................ Previous Ruling Rate 5 5 5 5^ 4^ 4^ 4^ 5 S'A 5^ 5 5 5^ 5 5^ 5 6 6 6 6 6 6 6 halted abruptly by the decrease in yield of acceptances and has not resumed its former proportions although the increasing amount of idle funds has caused a firmer feeling and. increasing sales. The largest dealer on the Coast reports that a rough classification of bills marketed during the past month would show a distinct preference for 90-day acceptances. His figures follow : 30-day............................. 60-day............................. 90-day............................. 120 -d a y ............................. 150-day............................. 5^ The tendency toward easier money rates which found expression on November 1st in the offering of United States Treasury Certifi cates of six months’ maturity at Acceptance 4%. per cent, and on November Market 3rd in the lowering by Per cent of rediscount rates at nine of the twelve Federal Reserve Banks and of 1 per cent at the other three, was reflected in the acceptance market by a reduction of the sell ing price of prime bills to a 4 % per cent basis, the ruling rate today, November 17th, com pared with 4 Y2 per cent on October 15th. Up to the time of change in rates, the bill market showed unusual activity, both in strength and breadth of the demand. This activity was Details of purchases and holdings of accept ances by the 36 principal accepting banks in the district appear in table “ S.” As was the case last month the bills drawn in this district were based primarily upon wheat, canned fruits, sugar and coffee, with an appearance during October of some cotton bills. There was no offering of Treasury Certifi cates of Indebtedness or Notes on October 15, 1921. On October 27, the Secretary of the Treasury announced an offering Government of two series of Treasury CerFinancing tificates of Indebtedness; both dated and bearing interest from November 1, 1921; the certificates of Series C, 1922, being payable on April 1, 1922, with inter- (R ) Interest and Discount Rates— Prime Commercial Paper----------N Customers Open Market f-------- Month ending N ov. 5 Oct. 5 7 7 7V2 6y2 7 7 Los A n g e le s.. 7 Portland ......... 7 8 Salt Lake City San Francisco. 6- 6^2 Seattle .............. 6 ^ - 7 7 Spokane ......... Interbank Loans Month ending N ov. 5 Oct. 5 53/4 53/4 - 0- 5 ^ -5 3 4 6 - 0- Month ending N ov. 5 O ct. 5 6 6 6 5H 7 7 7 8 6 - 0 - 6 6 - 0- 9.0% 10.5% 74.5% 5.0% 1.0% Collateral Demand Loans Month ending N ov. 5 O ct. 5 Month ending N ov. 5 Oct. 5 7 7 7 7 7 7 -0 - -0 - 8 6 7 7 Secured by L . L. Bonds or U . S. Certificates of Indebtedness 6y2 7 7 7 7 6y 7 7 6y2 7 7 7 7 7 6J4 7 y2 7 (S) Acceptances f — t Amount Accepted Oct. Sept. Pacific Northwest ....$ 1 ,1 4 0 ,1 9 9 $1,471,129 $ N orthern California . 3,580,105 »Southern California . . Other D is t r i c t s ............ Total 539,005 -0 - 2,395,182 160,000 -0 - --------Amount Bought--------------------------------------------Created in Twelfth District Oct. 270,081 $ 2,078,211 172,041 -0 - A ll Other Sept. Oct. 635,967 $2,601,886 854,000 937,664 627,928 1,332,532 -0 - ....................... $5,259,309 $4,026,311 $2,520,333 $2,117,895 -0$4 , 8 7 2 , 0 8 2 Amount held at close of month Total Sept. $1,389,503 1,336,304 150,418 -0$2 , 8 7 6 , 2 2 5 Oct. Sept. 1,504,573 -0$ 7 ,3 9 2 778,346 -0- ,415 $4,994,120 |36 banks reporting. *O n e bank in Los Angeles reporting $336,505 as amount accepted in October did not report in September. Oct. Sept. $2,871,967 $2,025,470 $ 7,752,824 $ 6,584,358 3,015,875 2,190,304 3,109,149 3,595,333 2,057,149 1,300,379 -0- -0- $12,919,122 $11,480,070 18 A g r ic u ltu r a l a n d B u s in e s s est at the rate of 4 per cent per annum ; the certificates of Series TS-2 being payable on September 15, 1922, with interest at the rate of Ay2 per cent per annum ; the combined offer ing being for $200,000,000 or thereabouts. Subscriptions for the two series closed at noon, Novem ber 1, 1921. The twelve Federal Reserve Districts reported combined subscrip tions of $811,064,000 for which the Treasury Department allotted $231,487,500. All of the Federal Reserve Districts over-subscribed their quota. Subscriptions totaling $18,800,000 were received in the Twelfth Federal Reserve Dis trict of which $14,450,000 were allotted. The large over-subscription throughout the country indicates a continuing heavy demand for Gov ernment securities of this kind, notwithstand ing the lower rate of interest and short maturity. From Decem ber 1, 1919, and during the year 1920, Certificate of Indebtedness interest rates rose from 4 % per cent to 6 per ce n t; since that time there has been a gradual decline in the rates, one of the September 15, 1921, issues being at 5 per cent, and the two issues of N ovem ber 1st being at 4% Per cent and 4 /J 2 per cent, respectively. Loans and discounts of 65 reporting member banks in the nine principal cities of the dis trict increased slightly during the four weeks ending Novem ber 2nd, but the decline in their Rediscounts of Member Banks on Selected Dates, 1920-1921 (in Millions of Dollars) C o n d itio n s investment holdings (principally in United States Certificates of Indebtedness and V ictory notes) more than counterbalanced this increase and the total of loans, discounts Banking and investments at $1,190,091,000 Situation was $5,200,000 less than it was on October 5, 1921. During the same period Government deposits declined approxi mately the same amount. These banks reduced their indebtedness with the reserve bank dur- Federal Reserve Note Circulation, Bills Discounted and Bills Bought in the Open Market, Federal Reserve Bank of San Francisco (In Millions of Dollars) ing the past four weeks by approximately $10,000,000, or 14 per cent. The total of this indebtedness on Novem ber 2, 1921, ($57,570,000) was, with the exception of the total of $54,000,000 the preceding week, the lowest since January 2, 1920. Reduction of member banks’ borrowings, which is indicated in the figures for these 65 representative banks, is confirmed by refer ence to the statement of condition of this reserve bank as of close of business N ovem ber 9, 1921. Bills discounted for member banks, at $88,029,000, were $31,000,000, or 26 per cent, less than the total held on O ctober 11, 1921, and are the smallest amount held at any time since January 23, 1920. Total reserves of the bank increased during the four weeks by $29,000,000 to $269,443,000, the larg est amount ever held by this bank. Federal Reserve notes in actual circulation declined by $8,300,000 to $224,357,000 and total deposits increased by $7,300,000, of which $6,400,000 was in member banks’ reserve account. (T ) Principal Resource and Liability Items o f Reporting Member Banks in Reserve Cities in Twelfth Federal Reserve District— N ov. 2,1921 N u m b er o f R e p o r t in g B a n k s .......................................................................... 65 Loans and D iscou n ts............................................................................................$ 877,038,000 Investments ............................................................................................................. 313,053,000 Cash in Vault and with Federal Reserve B an k ...................................... 97,059,000 Total D eposits......................................................................................................... 1,140,012,000 Bills Payable and Rediscounts with Federal Reserve B an k........... 57,570,000 O ct. 5.1921 N ov. 5,1920 66 66 $ 876,289,000 318,978,000 97,040,000 1,148,853,000 67,788,000 $1,153,430,000 132,863,000 108,216,000 1,151,242,000 110,021,000 F ederal R eserve B a nk of San 19 F r a n c isc o COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN FRANCISCO AT CLOSE OF BUSINESS NOVEMBER 9, 1921 RESOURCES O ct. 11, 1921 N ov. 12,1920 $ 17,885,000 60,140,000 - 0- $ 17,961,000 41,178,000 - 0- $ 14,637,000 51,089,000 3,553,000 Total Gold Held by B ank..................................................................... ,$ 78,025,000 $ 59,139,000 $ 69,279,000 182,976,000 Gold W ith Federal Reserve A g e n t............................................................ 4,855,000 Gold Redemption Fund................................................................................... . 167,911,000 9,612,000 97.814.000 10.050.000 Total Gold Reserves................................................................................ ,$265,856,000 $236,662,000 $177,143,000 3,587,000 3,592,000 472,000 Reserves............................................................................................ $269,443,000 $240,254,000 $177,615,000 30,201,000 57,828,000 6,628,000 42.189.000 76.432.000 3,834,000 49.328.000 106,839,000 54.801.000 Total Bills on H an d................................................................................. $ 94,657,000 $122,455,000 $210,968,000 United States Bonds and N o te s................................................................. O ne-Year Certificates of Indebtedness (Pittman A c t ) .................... A ll Other Certificates of Indebtedness................................................... 204,000 7,880,000 89,000 214.000 7,880,000 183.000 2,632,000 10,880,000 421,000 Total Earning A sse ts.............................................................................. $102,830,000 $130,732,000 $224,901,000 718.000 394.000 36,810,000 5,287,000 673.000 444.000 38,630,000 4,456,000 231.000 665.000 41,461,000 561.000 $415,482,000 $415,189,000 $445,434,000 $ $ N ov. Gold and Gold Certificates................... ......................................................... Gold Settlement Fund— Federal Reserve Board............................... Gold W ith Foreign A gen cies....................................................................... Legal Tender Notes, Silver, etc.................................................................. . Total Bills Discounted: Secured by U. S. Government O b lig ation s.. . . A ll O ther.......................................................................... Bills Bought in Open M arket........................................................................ . Bank Prem ises..................................................................................................... 5% Redemption Fund Against Federal Reserve Bank N o t e s . . . . Uncollected Item s.............................................................................................. A ll Other Resources......................................................................................... . Total Resources......................................................................................... 9 ,1 9 2 1 L IA B IL IT IE S Capital Paid I n ..................................................................................................... ,$ 7,410,000 Surplus .................................................................................................................... 15,207,000 Reserved for Government Franchise T a x ............................................. 2,848,000 7,382,000 15,207,000 2,835,000 6,862,000 11,662,000 - 0- D eposits: Government..................................................................................... 4,473,000 Member Bank Reserve A ccou n t.......................................... 118,326,000 A ll O th er.......................................................................................... . 3,905,000 3.029.000 112,742,000 3.616.000 944,000 114,818,000 3,095,000 Total D eposits............................................................................................ .$126,704,000 $119,387,000 $118,857,000 Federal Reserve Notes in Actual Circulation...................................... 224,357,000 Federal Reserve Bank Notes in Circulation— Net Liability......... 3,386,000 Deferred Availability Item s.......................................................................... 33,541,000 A ll Other Liabilities.......................................................................................... . 2,029,000 232,684,000 3.275.000 32,559,000 1.860.000 256,661,000 10.652.000 34.864.000 $415,482,000 $415,189,000 $445,434,000 1,472,000 1,539,000 736,000 T otal Liabilities.......................................................................................... M em o: Contingent Liability on Bills Purchased for Foreign Correspondents ................................................................................................. 5,876,000 TW ELFTH FEDERAL RESERVE D IS T R IC T Map showing territories o f Head Office and Branches o f the Federal Reserve Bank o f San Francisco
@FedFRASER