The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY REVIEW OF B U S I N E S S C O N D IT IO N S JOHN PERRIN, Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco San Francisco, California, November 16,1923 Vol. VII Summary of National Conditions Production of basic commodities and retail trade increased during October, and the vol ume of freight shipments and wholesale trade continued large. The level of wholesale prices and the volume of employment showed but little change. Production. The Federal Reserve Board’s index of production in basic industries ad vanced 3 per cent during October, after having declined for four consecutive months. The in crease for the month, while due in part to the resumption of anthracite coal mining, also re flected increases in production in the textile, lumber, and sugar industries, and in most other industries included in the index. Employment at industrial establishments showed practically no change between Sep tember and October. Contract awards for new buildings increased throughout the country considerably more than is usual at this season, and were 25 per cent larger in October than in September. Residential projects formed a larger proportion of the total than in any earlier month of the year. Crop estimates by the Department of Agri culture on November 1st indicated a substan tial reduction from the September forecast in the yield of cotton, but larger yields of corn, potatoes, and apples. Trade. Heavy movement of miscellaneous merchandise and livestock in October resulted M IL L IO N S O F D O L L A R S PER C E N T PER C E N T No. 11 B I L L IO N S O F D O L L A R S 300 250 200 y ^Ij>3 Vv 150 — 100 50 \ m .. 1919 Index of Production in Basic Industries C om bination of 22 individual series corrected for seasonal variation (1919 average = 100 per cent) I 1. 1. 11 1 1920 1921 1..1...I... 1922 i 1 1 1923 Prices Bank Credit Bank Credit In d ex num bers o f w h olesale prices. U n ited States Bureau o f Labor Statistics (1913 a v e r a g e = 1 0 0 per cent) All Federal R eserve Banks 80 0 m em ber banks in lead in g cities P lease R e a d a n d R e tu rn E n clo se d P o sta l C a rd 162 M O N T H L Y R EV IEW OF BUSINESS CONDITIONS in the largest railroad shipments of any month on record. Wholesale trade was 12 per cent larger than a year ago, sales in all leading lines except shoes showing increases. Department stores sales were 13 per cent larger than last October, and sales of mail order houses were the largest of any month since 1919. Prices. Wholesale prices declined less than 1 per cent in October, according to the index of the United States Bureau of Labor, and stood approximately at the level of a year ago. The principal changes for the month were de clines in the prices of fuel, clothing, metals, and animal products. Wholesale prices of farm crops, particularly cotton, increased. During the first half of November the prices of wheat, hogs, pig-iron, and hides receded, and prices of cotton and cotton goods, cement, and copper advanced. Bank credit. Since the middle of October there has been a slight decline in demand for credit for commercial and agricultural pur poses at member banks in leading cities. Con siderable decreases in borrowings for these purposes in the New York and Chicago dis tricts were partially offset by increases in other districts. Loans secured by stocks and bonds increased somewhat, while investments continued to decline and reached the low point of the year. The total member bank accommo dation at Federal Reserve banks declined be tween October 17th and November 21st, and on the latter date was the lowest since the middle of the year. The total volume of Fed eral Reserve bank credit outstanding, however, remained relatively constant because of in creased purchases of bills in the open market. The volume of Federal Reserve notes in cir culation declined by about $50,000,000 during the period, while other forms of money in cir culation increased. Money rates showed an easier tendency dur ing this period and in the early part of Novem ber the open market rate on commercial paper in New York declined from 5-534 to 5 per cent. Summary of District Conditions Signs of active autumn trade which were wanting in August and September appeared in nearly all sections of the district during October. The record for that month shows a greater than seasonal increase in the total vol ume of business transacted, as measured by debits to individual accounts, and carries a suggestion of continued activity in its figures of building permits issued. Eliminating seas onal variations, debits to individual accounts at banks in 21 clearing house centers were 19.2 per cent greater during October, 1923, than during October, 1922, and 3.9 per cent greater than during September, 1923. The latter gain marked the end of a monthly decline in these corrected figures which, by September, had carried them to levels 14.2 per cent below the peak of June, 1923. Prospective building operations assumed record proportions during October when the number of building permits issued in 20 large cities located in all sections of the district was 13.3 per cent greater than in the previous record month of March, 1923, and the value of building authorized was but one per cent less than the recent peak of August, 1923. Bank credit for financing this increasing bus iness activity as well as for harvesting and marketing the crops of the district has con tinued abundant and relatively cheap. Total loans of 65 reporting member banks at $999,000,000 on November 7th were slightly below the autumn peak of $1,008,000,000 reached on September 19th. Total deposits of these banks declined approximately $12,000,000 during Oc tober, a movement (possibly temporary) con trary to the general trend of recent months, which has been characterized by increasing deposits, narrowly fluctuating loans, declining investments, and reduced demands upon the Federal Reserve Bank. Total discounts of the Federal Reserve Bank declined from $72,000,000 on October 18th to $57,000,000 on November 14th, the latter figure being the lowest reached since April, 1923, and 38.3 per cent below the peak figure of the crop moving season reached on September 5th last. Interest rates tended slightly downward during the latter part of October and the first weeks of November. No abatement of productive activity in the principal industries of the district appeared during October, and a less than seasonal amount of unemployment was reported. Ac companying the continued excess of produc tion over consumption of copper, market prices for that metal declined during late October and early November to low levels (12^4 cents per pound) for the year, but have since (N o vember 19th) recovered to 13^6 cents per pound.- W ages of skilled and unskilled miners at the principal copper camps of Arizona and Utah were reduced 50 cents a day on Novem ber 1st. Petroleum production in California apparently reached a peak in September, fol lowing a steady rise of two years duration, 163 FEDERAL RESERVE AG EN T A T S A N FRANCISCO and average daily production during October was 7.7 per cent less than during the previous month. Storage stocks of petroleum increased despite the decline in production, standing at 88,349,550 barrels on November 1st compared with 85,496,607 barrels on October 1st. L u m ber mills of the district cut more lumber dur ing October than during any previous month this year, part of the increase being seasonal, and sales and shipments continued at high levels. Distribution of goods at retail proceeded actively during October and a marked increase in trade at wholesale was noted. Reports from 35 large department stores showed an increase of 15.9 per cent in value of sales during Oc tober, 1923, compared with October, 1922, and a greater than seasonal increase as compared with September, 1923. Sales of all lines of wholesale trade reporting to this bank were larger during October, 1923, than during October, 1922, and all but two lines, in which seasonal declines occurred, reported an in crease in the value of their sales when com pared with September, 1923. Prices, both of the principal products of this district and of a representative list of commod ities in the country as a whole, fluctuated with in narrow limits during October, a slight down ward tendency being apparent. The whole sale price index number of the United States Bureau of Labor, which includes 404 com modity or price series, stood at 153 for October compared with 154 for September, 1923, and October, 1922 (1913 prices=100). The decline was due principally to reductions in prices of cloth, clothing, fuels, and metals. Building materials prices were unchanged during the month, according to this index. The general price level today is a fraction of one per cent lower than a year ago. Completion of the harvest of the district’s crops has brought confirmation of earlier re ports of average or better than average yields of most farm products. Weather conditions have been favorable, transportation facilities have been more nearly adequate than for some years past, and market prices, although de pressed in some cases, have generally per mitted profitable disposition of the crops grown. Crop Conditions and Markets Harvesting of the district’s crops has been practically completed and, although final fig ures are not available, preliminary reports as of November 1st are sufficiently accurate to indicate that yields have been satisfactory and that prices received by producers generally have permitted realization of some profit on the year’s operations. The record wheat crop of the district (141,332,000 bushels compared with 99,277,000 bushels produced in 1922) has moved to mar ket slowly, and it is estimated that less than 50 per cent of the crop had passed out of pro ducers’ hands by November 1st. Farmers have not appeared to be anxious to sell, grain dealers are reported to have been operating with a minimum of speculative buying, and millers’ takings have been approximately nor mal. Domestic demand for wheat has been sluggish, as has been the export demand in nearly all countries except China and Japan. A large part of the export shipments of wheat (and wheat flour) from this coast has gone to the Orient, takings of Japan increasing 50 per cent and of China over 100 per cent during the first quarter of the 1923-1924 season as com pared with the same quarter of the 1922-1923 season. W H E A T EXPORTS July 1st to October 31st (inclusive) 1923 1922 (b u sh els) P o r tla n d ......... 10,289,639 Puget Sound.. 1,560,059 Totals ......... 11,849,698 (b u sh els) 1921 (b u sh els) 8,425,853 2,005,311 16,185,517 1,965,467 10,431,164 18,150,984 Progress of the harvest of the principal field crops of the district witnessed little change in forecasted yields. There was some reduction in the estimated crop of potatoes in Idaho and Oregon, but not enough to affect seriously the total yield of the district nor the general mar keting situation. More than 75 per cent of the sugar beet crop of the district had been har vested by November 15th and preliminary re turns indicated that yields per acre and aver age sugar content of beets have been well up to the figures of previous years. Whether or not returns to growers will be greater than during the past two seasons, therefore, depends upon the price of sugar during coming months. (The grower is paid on a sliding scale accord ing to the sugar content of the beets and the average prices received by the factories for re fined sugar.) A t present (November 15th) beet sugar is selling at $8.90 per 100 pounds in the San Francisco market compared with a price of $7.20 per 100 pounds quoted a year ago. The dry bean crop in California and Idaho, the two principal producing states of the district, is now placed at 3,776,000 bushels 164 M O N T H L Y R EVIEW OF BUSINESS CONDITIONS compared with 2,501,000 bushels produced in 1922. On October 15th growers were reported to be receiving $4.15 per bushel in California and $3.55 per bushel in Idaho compared with prices of $3.30 and $3.00 per bushel, respective ly, on October 15, 1922. Condition of the cot ton crop in Arizona and California improved during October, and the yield is now placed at 124.000 bales, compared with 119,000 bales a month ago, and a final estimated yield of 70.000 bales a year ago. A little more than twofifths of the crop had been ginned by November 1st, and picking and ginning have proceeded normally since that time. The United States Department of Agriculture’s forecast of total production of cotton in the United States was further reduced on November 1st, standing at 10.248.000 bales on that date compared with 11.015.000 bales a month previous. Prices of medium and short staple cottons, which com prise more than 75 per cent of the district crop this year, have risen to the highest level since 1920 and growers generally are reporting a profitable season. Apples and grapes were the only deciduous fruits harvested in quantity during October. The largest commercial apple crop of record has been produced in the four leading apple states of the district, the present estimated yield being 41,025,000 boxes (bushels). In 1922 there were 31,617,000 boxes (bushels) of apples produced in the same four states. Near ly all other apple growing sections of the coun try also have produced large crops, the total being nearly 30 per cent in excess of the aver age production of the past five years. Prices have been low as a result of the large supply, and the market, particularly for small sized and low grade apples, has been weak. A P PL E SH IP M E N T S Season Total to Novem ber 3rd 1923 (cars) California . . . ........................................... 5,095 Idaho .......... .. ........................................... 2,959 2,529 Oregon ......... .......................................... W ashington ........................................... 16,897 Total ........ .......................................... 27,480 1922 (cars) 3,062 1,886 1,126 9,730 15,804 The peak of the movement of grapes from California was passed during October. The crop was an average one, but transportation facilities were better than in previous years, and a larger proportion of the crop than usual was shipped from the state. Up to November 9, 1923, 47,567 cars of grapes had been shipped from California compared with a total move ment of slightly more than 43,000 cars during the 1922 shipping season. Supplies of grapes both at shipping points and in eastern markets have been heavy at nearly all times during the season and the market has been weak. Last year growers averaged approximately $52 per ton on table grapes and $65 per ton on wine grapes, but this year’s returns are estimated to have been well below these figures. The 1922-1923 citrus fruit season in Califor nia closed on November 1st. Preliminary fig ures on total shipments for the past two seas ons follow: 1923 (care) Oranges ...................................................... 50,868 Lem ons ....................................................... 8,740 1922 (cars) 29,591 9,926 Average returns to grower members of the California Fruit Growers Exchange during the past season have been estimated at $2.71 per box for oranges and $4.85 per box for lemons, the figure for oranges being below that of the California Fruit Shipments, 1922*1923 previous season and that for lemons slightly above the return in 1921-1922. The forthcom ing crop of oranges is estimated by the United States Department of Agriculture at 22,500,000 boxes, a yield but little, if any, larger than the crop in previous years of heavy produc tion. The present condition of the lemon crop indicates that the 1923 yield will be the largest ever recorded, exceeding the previous record crop of nearly 5,000,000 boxes produced in 1921. Conditions in the canned fruit market changed little during the past month. Distri bution is reported to be proceeding normally on a strong but cautious market. Dried fruit markets in general have improved slightly, but the presence of relatively large stocks of 1922 crop fruit (particularly prunes and raisins) either in the hands of packers or, as the result of recent sales, in the hands of wholesale and retail distributors, has continued to unsettle the market. 165 FEDERAL RESERVE AG EN T A T SA N FRANCISCO live sto c k Cattle and sheep have entered winter feed ing areas in excellent condition generally, and the supply of range feed is reported to be abundant in nearly all sections of the district. The United States Department of Agriculture summarizes the situation as follows: L I V E S T O C K A N D R A N G E C O N D I T I O N S N O V E M B E R 1st (I 0 0 = n o r m a l) Ranges 1923 1922 A r i z o n a ___ California . . Idaho .......... N e v a d a -----Oregon Utah ............ W ashington 95 84 97 95 93 90 97 79 85 82 99 83 92 Cattle 1923 1922 Sheep 1923 1922 94 91 99 91 95 90 95 93 93 98 98 97 94 100 85 90 81 98 91 93 91 92 90 100 .. 100 96 Good physical conditions of flocks and ranges and the favorable market situation for sheep and wool which has prevailed during the past season, are reported to have caused many sheep raisers to plan a material increase in the size of their flocks for the coming season. most of the district markets. Hogs continued in relatively heavy supply and prices worked toward lower levels. Dairy and Poultry Products Butter production continued at seasonally low levels during October, and further reduc tions occurred in the large stocks of cold stor age butter held in the district. Holdings at four principal markets on November 1, 1923, were 27 per cent less than on October 1, 1923, and 45 per cent below the recent peak of August 1, 1923, but continued 80 per cent greater than one year ago. Reported cold storage holdings of butter in the United States as a whole were 76,418,000 pounds on Novem ber 1, 1923, compared with 73,857,000 pounds on November 1, 1922, and a five year average on that date of 86,993,000 pounds. M IL L IO N S OF POU NDS TH O USAN DS I923> 5 00 r/ ' > v .\...i A 922 \ ///'I \N // XN \X \ \ 400 300 1 J 1 ___ *___ . ...i ..j___ 1 1 Seasonal Movement of Holdings of Cold Storage Butter at Four Principal Markets of the District, 1922-1923 200 100 OL!-»- 1922 1923 Receipts of Livestock at Eight of the Prineipal Markets of the District 1922-1923. (Los Angeles, Ogden, Portland, Salt Lake C ity, San Francisco, Seattle, Spokane, and Tacoma included) Receipts of all classes of livestock at the principal markets of the district during Oc tober were greater than in the previous month, and, excepting sheep, greater than in the same month a year ago. Receipts of hogs during October, 1923, were larger by 36 per cent than during October, 1922. The figures for eight markets follow: Cattle October, September, October, 1 9 2 3 ... 101,269 1 9 2 3 ... 74,806 1 9 2 2 ... 94,142 Calves Hogs Sheep 29,176 20,343 23,275 170,809 147,026 125,473 375,127 339,027 418,765 The majority of the better grades of cattle and practically all available sheep and lambs have moved to market during the past month at prices satisfactory to producers, a slight up ward price tendency having been apparent in The winter decline in holdings of cold stor age e g g s is now well under way. Stocks in six markets of the district have decreased 33 per cent during the past month, and on No vember 1st were but one-half as large as on August 1st. They were, however, 50 per cent greater than stocks held on November 1, 1922, whereas on October 1, 1923, holdings of cold storage eggs were but 21.7 per cent greater than in the previous year. A summary of cold storage holdings of but ter and eggs in the chief markets of the Twelfth District is given in the following table: N ov. 1,1923 Oct. 1,1923 Sept. 1,1923 N ov. 1,1922 Butter (pounds) 3,548,212 4,893,783 6,312,719 1,969,006 Eggs (c a s e s )... 333,894 504,392 600,331 221,018 Prices Of the prices of nineteen selected products of the farms of this district, six advanced, four remained unchanged and nine declined during October. Of the prices of five manufactured foods one advanced, three were unchanged and one declined. Three non-ferrous metals de clined in price during October, while one ad vanced. Two grades of lumber did not change MONTHLY REVIEW OF BUSINESS CONDITIONS 166 in price during the month. The price of Cali fornia petroleum of 35 degrees gravity and above was cut during the month from $1.04 to $0.76 per barrel, and other grades were reduced in price by smaller amounts. IN D E X N U M B E R S 1920 1921 1922 1923 Wholesale Prices and the Cost of Living, 1920-15)23 U n ited States B ureau o f Labor In d ex o f W h o le sa le Prices (1 9 1 3 = 1 0 0 ) N ation al Industrial C on feren ce Board In d ex o f th e C ost o f L ivin g (Ju ly 1 9 1 4 = 1 0 0 ) The farm products whose prices declined during October were cattle, sheep, hogs, wool, wheat, rice, apples, lemons, and dried apples; those whose prices advanced were lambs, cot ton, oranges, dried apricots, prunes, and egg s; those whose prices did not change were bar ley, raisins, milk, and butter. W heat for De cember delivery at Chicago was quoted at $1.01% to $1.03% per bushel on November 13th, compared with $0.99 on July 17th when it reached the lowest point this year, and $1.10^4 on October 8th, the highest point sub sequently reached. Cotton prices recently reached the highest levels since August, 1920, spot middling uplands cotton at New Orleans having sold for 3 3 f4 cents per pound early in November. Of nineteen selected farm products, six are selling today at higher prices than a year ago, while thirteen are selling for less. The price of electrolytic copper at New York declined during October from 13% to 12} i cents per pound, but has since returned to 1 3 ^ cents per pound (November 13th). (A) Commodity Prices— Commodity T w en ty Basic Commodities (F . R. B. of N . Y .) 19 13 =1 00 . W holesale Prices (U . S. Bureau of Labor) 1 9 1 3 = 1 0 0 .. .. . Cost of Living (National Industrial Conference Board) July, 19 14=100 ..................................................................................... Cattle (Native B e e f ) . . . W e ek ly average price at C h icago.. Sheep .................................. W e ek ly average price at C h icago.. Lambs ................................W eek ly average price at C h icago.. H og s ................................... W e ek ly average price at Chicago. . W h eat ...................C h icago contract price for Dec. W h e a t .. B a r le y .................... Shipping Barley f. o. b. San F ran cisco.. . R i c e ......................... California Fancy Japan at San Francisco Cotton ................... M iddling Uplands— W eekly range of spot quotations at N ew O rleans...................... W o o l .......................Average of 98 quotations at B osto n -------F l o u r .......................First Grade Family Patent f. o. b. Cali fornia mills ........................................................ Sugar ..................... Beet Granulated f. o. b. San F ran cisco.. . Apples ................... Extra Fancy Jonathans f. o. b. Pacific N orthw est ......................................................... Oranges ................Valencias, Special Brands, L os A n g e le s .. Lem ons ................. Special Brands, at L os A n g ele s................... Dried A p p le s____Choice in 50-lb. boxes f. o. b. C alifornia.. Dried A p ric o ts... Choice in 25-lb. boxes f. o. b. California.. Prunes ................... Size 40/50 in 25-lb. boxes f. o. b. Calif____ Raisins .................. Loose Muscatel in 25-lb. boxes f. o. b. C a lifo rn ia ....................................................... Canned A p ricots. Choice 2 ^ s f. o. b. California...................... Canned Peaches.. Cling Choice, 2 ^ s f. o. b. California......... Canned Pe a r s . . . . Bartlett, Standard 2 ^ s f. o. b. California. Raw M ilk ...............Pacific Coast— O ctober average................... B u t t e r .................... 93 score at San Francisco................................ E ggs .......................Extras— San F r a n c isc o ..................................... Copper .................. Electrolytic; N ew Y o rk S p o t.......................... L e a d ........................N ew Y o rk Spot .................................................. Silver ..................... N ew Y o rk Foreign ............................................ Z i n c .........................East St. Louis S p o t............................................ Petroleum ........... California 35° and above................................... D ouglas F ir .......... 2x4, 16 ft. N o. S1S1E f. o. b. Seattle.......... Douglas F ir .......... 12x12 Tim bers f. o. b. Seattle.......... ............... ^Prices as of October 30th. Unit 100 100 100 100 lbs. lbs. lbs. lbs. bu. cental cental lb. lb. Nov. 2.1923 One Month A go One Year Ago 145.4 153.0 148.8 154.0 148.0 154.0 164.1 $ 9.90 6.75 13.05 7.25 1 .0 6 ^ -1 .0 7 1.40-1.60 5.35 30.50-31.50# 74.28# 163.4 $10.30 7.10 12.90 7.70 1 .0 7 ^ -1 .0 8 ^ 1.40-1.60 5.75 157.1 $10.30 6.65 13.40 8.20 1.16-1.175* 1.45-1.55 5.15 28.25-28.50# 74.88# 23.25-24.00# 76.84# bbl. lb. 7.05 8.80# 7.04 9.40# box box box lb. lb. lb. *.75-1.10 5.50-6.25 5.25-5.50 .0 8 -.0 8 ^ 1.35-1.50 3.50-4.00 6.25-6.75 lb. doz. doz. doz. 100 lbs. lb. doz. lb. lb. oz. lb. bbl. M ft. M ft. .1 0 - .1 0 ^ .1 0 % -.ll .0 8 ^ 2.60 2.25 2.40 2.81 •49^2 .60 .125^ 6.85# .63 6.35-6.40# .76 19.50 25.00 .0 8 j 4 - .0 8 ^ ■ 0 9 ^ -.0 9 M 7.56 7.20# *1.35 10.00-11.00 9.00-10.00 .10 H .2 3 - 2 4 .1 0 ^ - .1 0 ^ .12JÎ-.12J* .08*4 2.60 2.25 2.40 2.81 .4 9 ^ .58 .135* 7.10# .10 3.25 2.60 2.85 2.44 .4 6 ^ .5 9 ^ .13*4 7.125# .■667/s 7.10-7.15# 1.95 20.50 20.00 .637/ s 6.25-6.30# 1.04 19.50 25.00 167 FEDERAL RESERVE AGENT AT SAN FRANCISCO Salmon Preliminary estimates available at the close of the 1923 salmon canning season indicate that this year’s pack of salmon in Alaska and the Pacific Northwest was well over 6,000,000 cases (case contains 48 one pound or 96 half pound cans), the largest output reported since 1919. Most of the gain as compared with the year 1922, when approximately 5,200,000 cases of salmon were packed, resulted from the un usually large catch of Pink Salmon in the waters of Southeastern Alaska. In Western and Central Alaska sections, which are partly under new government fishing regulations as to the type and amount of fishing gear to be used, the catch was smaller than a year ago, but nevertheless satisfactory because of the high percentage of Red Salmon included. The following table presents preliminary figures of the 1923 pack and final estimates of the 1922 pack of salmon in this district: 1922 Pack 1923 Pack (P relim inary Estimate in C ases) Alaska .......... ............. .............. 5,365,000 650,000 Puget Sound............ .............. 435,000 Columbia Ri v e r . . . . .............. Other United States W aters 90,000 Totals .................... ............. 6,540,000 (F in a l Estimate in C ases) 4,501,000 249,000 392,000 89,000 5,231,000 No accurate figures of total stocks of 1922 pack salmon carried over into the 1923-1924 season by packers are available, but it is reported that the amount of such stocks was considerably less than those held at the beginning of the 1922-1923 season. Movement to market has proceeded normally thus far this year, and prices have remained steady since the opening of the present season. Recent spot prices for salmon, 1923 opening prices, and 1922 opening prices are compared in the following table: Spot Price November 15, 1923 Variety Opening Price O ct., 1923 M IL L IO N S O F B U S H E L S 5 4 3 2 I O TH OUSAN D BARRELS 900 700 500 300 100 0 Milling Flour millers of the district ground more flour during October, 1923, than during any previous month of which there is record, ac cording to reports received by this bank from 16 large milling companies. Total output of these companies during the month was 895,470 barrels, an increase of 21 per cent over Sep tember, 1923, and of 30 per cent over October, 1922. Part of the increase in output was in re sponse to an active foreign demand and a slightly improved domestic demand for flour, but a considerable part of the milled product was placed in storage. Stored stocks of flour 1922 192 3 Monthly Plour Output, and Stocks of Wheat and Flour at End of Month of 16 Reporting Milling Companies Production of 46 flour mills reporting through sectional millers’ associations of this district was 9.1 per cent greater during October, 1923, than production of 45 mills reporting during September, 1923, and 33.8 per cent greater than production of 45 mills reporting during Octo ber, 1922. Figures follow: Opening Price $2.25 1.15 1.05 O ct., 1922 * A s o f the first day o f the following month. 19231922 $2.35 1.25 1.20 Sept., 1923 O u t p u t .................... (bbls.) 895,470 739,115 688,054 Stocks of Flour* (bbls.) 612,735 477,386 404,240 Stocks of W h eat* (bu.) 3,611,781 2,328,044 2,561,908 (P e r d ozen N o. 1 tall cans) Alaska Reds ........... $2.25-2.35 P i n k s ........................... 1.20-1.25 1.20 Chums ....................... held by reporting mills totaled 612,735 barrels on November 1st, the largest figure reported since July, 1920. A normal seasonal increase in millers’ stocks of wheat was reported during October. Figures of output and stocks for 16 milling companies for which a continuous rec ord is kept are given in the following table : N o . of M ills Reporting O ct., Sept., 1923 1923 O ct.. 1923 Output-----Sept., 1923 O ct., 1922 (barrels) (barrels) (barrels) 3 7 5 t65 9 California . . . . 10 3 O r e g o n ........., 15 W ashington . 18 10 3 14 18 451,964 13,765 214,965 539,409 16,446 229,315 496,173 344,117 10,630 166,312 389,851 District . . . , 46 45 1,220,103 1,117,593 910,910 Lumber Production of lumber in the district reached a seasonal peak in October, when the cut of mills in four reporting associations (697,489,000 board feet) was greater than during any month of the past four years. The record cut exceeded both shipments on old orders and new orders received, indicating that mills were manufacturing for stock as well as for sale. Sale and distribution of lumber continued at high levels, however, new orders received and MONTHLY REVIEW OF BUSINESS CONDITIONS 168 shipments on orders previously booked having been approximately one-third greater than in October a year ago. Figures showing the ac tivity of about 200 reporting mills follow (000 om itted): Qct i m Sept 1923 Qct 1922 (board feet) P r o d u c tio n ................697,489 Shipments .................591,241 Orders ........................602,939 Unfilled O r d e r s .... 438,866 (board feet) 663,054 582,551 610,722 427,033 (board feet) 628,693 434,580 443,615 449,902 The slight decline in the volume of orders received in October as compared with Septem ber, 1923, was due in part to a seasonal de crease in domestic demand and in part to the reluctance of not a few mills to book further orders at this time. The smooth functioning of the country’s transportation system during recent months has also been a factor in the situation. Ability of distributors to secure shipments when needed has obviated, to some extent, the necessity of anticipating future re quirements, and the effect of this development is becoming apparent in figures of orders now being placed with the mills. Mining The month of October in the mining indus try was principally characterized by the efforts of copper producers to continue their mines in operation in the face of increasing stocks and declining prices for the metal. It is estimated that production of copper has exceeded con sumption by approximately 10 per cent during the past few months, and during this period prices (electrolytic copper at New York) have declined from a peak of 17^$-17j^ cents per pound to a low point of 12.125 to 12.25 cents per pound reached on October 25th. Prices have advanced since that date, the quotation on November 13th being 13.5 cents per pound. A recent inquiry into the cost of mining, smelt ing, and refining the copper of this district fur nishes the following approximations of costs of placing on the market the metal from socalled “low cost” and “ high cost” mines. High C ost M ines (cents per pound) C o p p e r ................................... M IL L IO N S O F B O A R D F E E T Lumber Production, Order« Received, and Shipments in Twelfth Federal Reserve District as Reported by Four Lumber Associations. 1922-1923 Declines in domestic demand for lumber have been largely offset by increases in de mands of foreign customers. One of the larg est factors in the export trade reports a gain of more than 40 per cent in export business dur ing October, 1923, as compared with Septem ber 1923. Some shippers are reported to have experienced difficulty in securing sufficient cargo space to care for current export ship ments and a small volume of this business has accumulated, forming a temporary obstacle to the acceptance of further orders. Freight rates on lumber shipped from Pacific Coast ports to the Orient advanced 50 cents to one dollar per thousand feet during October, and ranged from $14 to $15 per thousand feet at the beginning of November. The principal export markets for lumber during the past month have been Japan, China, and Australia, a marked increase in demand for Caifornia redwood having been a feature of the trade with the latter country. Low C ost M ines (cents per pound) 14.7-15.7 10.2-11.7 Effective November 1st, wages at many of the principal copper mines of Arizona and Utah were lowered 50 cents per shift. Preliminary estimates of output of copper in the United States during October indicate that produc tion was over 130,000,000 pounds, a figure slightly above the previous peak month of August. Final figures of national production of cop per, silver, zinc, and quicksilver during Sep tember, 1923, August, 1923, and September, 1922, are presented in the following table: Copper (lbs.) Sept.. 1923 Aug., 1923 Sept.. 1922 (mine production) 125,289,025 129,377,401 96,407,992 Silver (oz.) (commercial bars) 4,998,386 5,292,607 5,324,87o Zinc (tons) (slab) .................... 39,105 41,625 33,134 Quicksilver (flasks— 75 lbs., estimated) 800 800 550 Figures for lead are not available. Average prices of all of the principal nonferrous metals produced in the district were lower during October than during September, and with the exception of lead were lower than a year ago. , ----- ■Average Prices — .......... ^ x O ct.. 1923 (cents) Copper (lb.) New Y o rk Electrolytic.. 12.57 Lead (lb.) New Y o r k ............................ 6.83 Silver (oz.) New Y o r k ............................ 63.65 Zinc (lb.) St. L o u is.............................. 6.29 Quicksilver (dollars per flask) San Francisco------ 61.09 Sept.. 1923 (cents) O ct.. 1922 (cents) 13.32 13.88 6.85 6.53 64.20 68.01 6.44 6.84 61.34 70.75 169 FEDERAL RESERVE AGENT AT SAN FRANCISCO Petroleum The rapid increase in production of petro leum in California, which has been in progress for the past two years, was checked, at least temporarily, during October when average daily production was 7.7 per cent smaller than during the previous month. The figures follow : Average Daily Production of Petroleum in California ( in barrels) October, 1923 September, 1923 October, 1922 792,787 858,750 432,885 Output is reported to have declined partly as the result of attempts of certain producers to curtail the flow of oil at their wells in view of present market and storage conditions, and M IL L IO N S 200 100 80 ter month exceeded that of August, 1923, by 9.1 per cent. Consumption increased slightly during the past two months, but by a smaller amount than did production, and stored stocks on November 1, 1923, amounted to 158,441,451 gallons, an increase of 10 per cent over the 144,099,126 gallons held on October 1, 1923, and of 3.1 per cent over the amount (153,605,104 gallons) stored on September 1, 1923. Stocks on November 1, 1923, were 129 per cent larger than a year ago. Electric Energy Sales of electric energy for industrial pur poses reported by 20 principal power com panies were 19.6 per cent greater during Sep tember, 1923, than during September, 1922, all industries for which segregated figures are available showing increases. September sales did not show the usual seasonal decline as compared with August this year, a reflection both of sustained activity in industry and of 60 40 MILLIONS OF KILOWATT HOURS 450 20 400 10 3 50 5 300 I fTT": 'Tf r 1922 1923 C A L IF O R N IA Production, Shipments, and Stored Stocks of Petroleum, and Refinery Stored Stocks of Gasolene, 1922-1923 partly as the result of the cessation of flush production in one of the newer fields of the state. There were 99 new wells brought in dur ing the month with an initial daily production of 127,758 barrels. W ells abandoned numbered 33. Shipments of petroleum from California de clined more than did production during Octo ber, averaging 700,757 barrels per day or 10.1 per cent less than during September. The re sultant increase in stored stocks amounted to 2,852,943 barrels or 3.3 per cent, and raised the total amount of oil in storage to 88,349,550 bar rels on November 1st. A s was stated in the Monthly Review for October, prices for crude oil in California were reduced on October 9th to the lowest levels since 1914. Refinery output of gasolene declined 5 per cent during September, 1923, as compared with the previous month, but increased 15 per cent during: October, and production during the lat- 250 200 0 Total Industrial Sales (K. W . H .) of 20 Power Companies in Twelfth Federal Reserve District, 1922*1923 a continuing demand from agricultural con sumers at a time when their need for power is normally declining. Percentage comparisons of sales by certain industries and by sections of the district are presented in the following table: Percentage Increase or Decrease (—) September, 1923, compared with September, 1922 Total Agricul Manu* Industrial ture Mining faoturing Sales C a lifo rn ia ..................... Pacific Northwest ... Intermountain States Twelfth D istrict......... 10.5 — 20.6 — 8.3 8.6 10.7 6.3 47.5 14.8 19.5 25.3 — 5.5 20.2 16.8 30.2 18.5 19.6 Figures showing the number of industrial consumers and industrial sales of reporting 170 MONTHLY REVIEW OF BUSINESS CONDITIONS companies during September, 1923, and 1922, follow : w Number of Industrial Consumers Sept., Sept., 1923 1922 C a lif o r n ia .................... 73,711 53,624 Pacific Northwest . . 12,471 11,013 Intermountain States 5,490* 10,534* Tw elfth District . . . 91,672 75,171 Industrial Sales K .W . H . Sepft., Sept., 1923 1922 275,104,763 235,538,225 89,125,276 68,452,870 66,015,287 55,693,948 430,245,326 359,685,043 *D ue to a change in the statistical method o f one reporting com pany these figures are not comparable. Employment The only important wage reduction in any of the principal industries of the district dur ing the past year was reported from the copper mining sections of Arizona and Utah during October, when several of the principal copper mining companies in these states then an nounced that, effective November 1st, wages of both skilled and unskilled miners would be lowered 50 cents per shift. This reduction cancels the voluntary increase of March of this year, when the copper mines sought to attract needed workers by advancing wages. The fol lowing table shows changes in the average wages paid copper miners during the past year: Skilled Unskilled O ctober 1, 1922-M arch 15, 19 23 .. 5.25-6.50 4.50-5.00 March 15, 1923-N ovem ber 1, 1923 5.75-7.00 5.00-5.50 Novem ber 1, 1923................................ 5.25-6.50 4.50-5.00 Changes in employment in the district during October were largely seasonal, and in most sections it is reported that workers released from seasonal employment are being absorbed by non-seasonal industries. The urgent de mand for apple pickers in the Pacific North west continued during October, and in Idaho, where efforts were being made to complete the harvest before the coming of winter, a short age of agricultural workers was reported. There has been little change from last month in the number of men employed in the lumber industry. The supply of both skilled and un skilled miners available for work in the min ing industry is increasing as the men who en gage in other occupations during the summer return to the mining camps. Building and allied activities have continued to afford full employment for building trades workmen. Some surplus of skilled and unskilled workers of all kinds has been noted in California, large ly the result of an influx of laborers from other sections of the country who spend their win ters there because of the increased opportun ities for employment. Employment in manufacturing industries in Los Angeles and Portland declined 0.7 per cent and 3.5 per cent, respectively, during Oc tober as compared with September, according to reports of the United States Department of Labor. San Francisco reported an increase of 5.8 per cent, and Seattle no change during the month. The following figures based on reports of 40 firms employing 501 or more men give a comparison of employment conditions in man ufacturing industries during October, 1923, and 1922: Number of Firms Los Angeles.......... Portland............... San Francisco....... Seattle................... 16 8 10 6 Number of M en Increase O ct., on Payroll 1923, over O ct.. 1923 O ct.. 1922 O ct.. 1922 33,834 8,805 8,504 2,433 28,822 7,680 6,812 2,417 17.4 14.6 10.7 0.7 Automobile Registrations Although the amount of the increase was smaller than in some previous months, sales of new automobiles during September, 1923, were still greatly in excess of sales during Sep tember, 1922. In four states for which com parable data are available there were 28 per cent more new passenger cars and 7.3 per cent more new commercial vehicles registered dur ing September, 1923, than during September, 1922. During the first nine months of 1923, as compared with the same period in 1922, there was an increase of 66.2 per cent in registra tions of new passenger cars in these states, and registrations of new trucks increased by 34.2 per cent. Figures showing registrations of new automobiles in the states of this dis trict (except Nevada, for which figures are not available) for the first nine months of 1923 and 1922 are presented in the following table: Total New Passenger Cars Registered Jan. 1 to O ct. 1 1923 1922 Total N ew Commercial Cars Registered Jan. 1 to O ct. 1 1923 1922 7,779 3,504 Arizona ................. C a lifo rn ia ................168,961 107,152 Idaho ..................... 7,464 3,725 O r e g o n .................. ..27,202 12,853 U t a h ........................ 9,278 * W ashington ........ ..37,547 13,791 678 18,195 547 1,246 854 3,991 Total (4 states) 211,406 127,234 20,666 195 13,659 356 1,191 * * 15,401 *Not: available. Total registrations of old and new automo biles in six states of the district (figures for Nevada are not available) to November 1, 1923, number 1,611,074, an increase of 32.7 per cent over the cars registered in the same period of 1922. Preliminary figures compiled by the Federal Reserve Bank of Chicago show that produc tion of automobiles during October, 1923, was greater than in September, 1923, reaching the high levels of the previous August. Compared with October, 1922, this year’s production shows a gain of 43.1 per cent. The figures folO ct.. 1923 Sept., 1923 O ct.. 1922 Passenger Cars............... 310,105 Trucks............................. 29,300 *0 W : 275,437 27,524 216,034 21,104 T o t a l ..................................... 339,405 302,961 237,138 FEDERAL RESERVE AGENT AT SAN FRANCISCO 171 R e ta il T r a d e Wholesale Trade Trade at retail during October increased by more than the normal seasonal amount, ac cording to reports of 35 department stores in seven cities of the district, and reached the highest levels of the present year. Compared with October, 1922, sales during the past month showed an increase of 15.9 per cent, and com pared with September, 1923, an increase of 26.5 per cent, the latter gain being, of course, partly seasonal. All cities participated in the increase, both as compared with one month ago and one year ago. Stocks of goods held by reporting stores in creased 3.6 per cent during October, as pur chases for the winter and Christmas trade con tinued to arrive. The value of stocks (selling price) held on November 1, 1923, was 15.7 per cent greater than the value of stocks held on November 1, 1922. The average annual rate of stock turnover indicated by figures of stocks and sales for the period July 1 to November 1, 1923, was 2.28 compared with a rate of 2.3 for the same period in 1922. Increasing activity in trade at wholesale was noted by the majority of the 200 wholesale firms which reported the value of their sales to this bank at the close of October. O f the eleven reporting lines of business, nine re ported increases over the preceding month, and the decreases of approximately 5 per cent in sales of shoes and stationery may be ascribed to seasonal causes. All lines of business re ported increases in the value of sales during October, 1923, as compared with October, 1922, automobile tires, which showed a decline of 10.7 per cent in September as compared with a year ago, showing an increase of 8.8 per cent. OCTOBER PRICES 1922 -1009É«OCTOBER 1922 SALES U.S. BUREAU OF LABOR M K X NO. WHOLESALE PRICES AGRICULTURAL IMPLEMENTS AUTOMOBILE SU PPLES AUTOMOBILE TIRES DRUGS M IL L IO N S OF D O L L A R S t t 1 i t 1 X / / O v ( i i \ / . _ / 19 2 2' \ a i 1 i i < \% /* ^ ! 120 Percentage increases or decreases (— ) in the value of October sales of all reporting firms in each line of business are presented in the following table: Ten Month, (In M illion s o f D ollars) A detailed statement of the percentage changes in the value of sales and stocks of re porting department stores in this district fol lows : Percentage increase Percentage increase Los A n g e le s .. .. 6 Oakland ......... 4 Salt Lake City . . . 4 San Francisco. . . . 10 S e a ttle .............. . . . 5 Spokane ......... 5 District* . . . . , 35 Drugs in value of stocks O ct., 1923, compared with O ct., Sept., 1922 1923 Number of Firms O ct., 1922 ts 21 ,. 19 , 17 8 13 ,. 6 16 29 , 21 14 , 29 6.5 26.1 2.6 27.2 14.3 34.2 10.7 1.2 13.5 0.9 0.8 26.6 11.2 6.1 10.1 10.7 8.6 29.8 29.6 20.9 26.3 11.8 29.2 31.1 11.3 17.8 11.5 7.0 2.5 3.3 3.3 8.9 3.4 5.6 1.4 Shoes 15.9 26.5 15.7 3.6 August, 1923.................. 5 September, 1923.................. 2 October, 1923.................. 9 ^Figures for one store included in district figures, but not in cluded in figures for cities shown above. Ending Oct. 31, 1923, com pared with Sept., same period in 1922 1923 O ct.. 1923. Net Sales of 31 Department Stores in Twelfth Federal Reserve District N o . of Stores 160 y ... - - - _ i 1 i-----1—2-1—“ i rr~rin in value of sales O ct., 1923, compared with O ct., Sept., 1922 1923 140 Dollar Value of Sales of Representative Wholesale Firms arid General Wholesale Prices in October, 1923, compared with October, 1922 ✓ X XX / " , 1 1 / 1923 3.2 6.2 4.2 10.3 5.8 28.4 18.5 2.5 8.0 — 5.3 — 4.9 9.8 23.0 8.8 16.7 16.8 32.8 23.8 10.2 22.4 11.1 14.3 Collections during the past three months have been reported as follows: Number of Firms Reporting Collections as Excellent Good Fair Poor 48 47 57 79 72 77 7 4 4 MONTHLY REVIEW OF BUSINESS CONDITIONS 172 Building Activity Continuance of greater than seasonal build ing activity throughout the winter months is forecast by the record of building permits is sued in 20 of the principal cities of this district during October. The value of permits granted increased 29.8 per cent over September and was but 1 per cent less than in the record month of August, 1923. The number of per mits was the largest issued in any month of which this bank has record, and exceeded the previous record number issued in March, 1923, by 13.3 per cent. A s compared with Septem ber, 1923, the number of permits issued in Oc tober, 1923, showed an increase of 20.5 per cent. 40 ft 36 \ V A /A A v VV 32 J 28 24 1 1 / < OUfIT F PERI*ITS IN 2 0 \ Vi M MILLI0N2 OF 00LLARS 16 »2 * r 8 «• \ ----- \ s %% ... v NUUBER 0F PERMTS IN THOJSANDS i .A* r -y JL, JL-J__ L_ J__ 1__ L J__ i__ L 1., t.-L li . . 1 !. .1—L. JL-J_L. J_I— 1923 19 2 2 Building Permits Issued in 20 Principal Cities. Twelfth Federal Reserve District, 1922*1923 The principal increases were in Fresno, Long Beach, Los Angeles, Berkeley, Oakland, and San Francisco. Percentage Increase in the Number and Value of Building Permits issued in 20 Cities O ct., 1923, compared with O ct.. 1922 Sept., 1923 Business Failures Business failures in this district during Oc tober, 1923, numbered 186, an increase of 50 per cent over the number of failures reported during September, 1923. Liabilities of failing concerns increased 141.5 per cent over the pre ceding month and, excepting February, were greater than in any month this year. Com pared with October, 1922, the number and lia bilities of business failures during October, 1923, increased 1.1 per cent and 34.4 per cent, respectively. The average liabilities of busi ness failures in the district during October, 1923, amounted to $20,061 compared with $12,467 in September, 1923, and $15,106 in Oc tober, 1922. LIABILITIES IN MILLIONS io, 8 NO. OF F A IL U R E S 250 #\ 'AILURE s A 1 1 NO OF / v .y ' \A t ,v * * A V 200 » \. ISO too V \ /\ (B) Building Permits— October, 1922 Value N o. 311 B e r k e le y ......... 80 B o i s e ................ 228 Fresno . . . . . . . L o n g B ea ch .. 489 L o s A n g e le s. . 6,632 Oakland ......... 1,275 34 O g d e n .............. 436 Pasadena ___ P h o e n ix .......... 71 P o r t la n d ......... 1,679 17 Reno ................ Sacramento . . 364 125 Salt Lake City 535 San D ie g o -----909 San Francisco. 119 San J ose.......... 976 Seattle ............. Spokane ......... 283 164 Stockton ........ 413 Tacom a .......... $ 1,224,225 32,448 1,392,081 2,336,695 20,541,872 2,759,208 47,100 1,062,362 217,424 2,136,360 26,710 448,897 481,955 1,318,147 3,793,374 207,100 1,219,270 183,892 323,700 275,636 224 91 301 425 4,951 1,025 36 434 47 1,213 13 301 108 495 679 79 1,013 329 139 351 District . . . . 15,140 $40,028,456 12,254 20.5 29.8 The United States Department of Labor in dex number of building materials prices stood at 182 in October (1913 prices=*l()0). This is unchanged as compared with a month ago, 0.5 per cent less than one year ago, and 12.1 per cent below the peak of April, 1923. V October, 1923 N o. Value 23.6 36.4 Number of Permits Issu ed................ Value of Permits Issued....................... $ 420,000 49,951 611,352 1,248,801 11,580,427 2,316,8 33 58,800 1,297,256 154,788 1,519,185 46,900 1,378,486 297,480 660,900 4,719,394 116,110 2,249,035 223,564 168,199 220,698 $29,338,159 V 1 1 1LITI ES T V V™ a JL-J__ L_ J__ 1__ L. i f V -S . 50 1 1 ...l- J__ 1__ L_ 1 i —i j .. j . . j . 1922 1923 Business Failures. Twelfth Federal Reserve District. 1922-1923 R. G. Dun and Company’s preliminary fig ures of the number and liabilities of business failures in the states of the district during Oc tober, 1923, and September, 1923, follow: No. U tah ................... W ashington . . . 2 96 6 5 28 6 43 D is t r i c t ......... 186 Arizona ............ C a lifo rn ia ......... October, 1923 Liabilities $ 14,943 2,327,693 24,597 16,306 345,119 27,636 975,063 $3,731,357 September, 1923 N o. Liabilities 1 1,000 50 31 580,662 70,227 500 198,932 221,530 473,099 124 $1,545,950 10 1 20 11 173 FEDERAL RESERVE AGENT AT SAN FRANCISCO Savings Accounts Savings deposits in 74 banks in seven prin cipal cities of the district continued upward during October and amounted to $955,447,000 on the last day of that month, a gain of 0.7 per cent over the $948,946,000 reported on Sep tember 30, 1923. An exception to the general trend was noted in Salt Lake City where a de cline of 2.9 per cent was reported during the month. Compared with October, 1922, the disM IL L IO N S O F D O L L A R S tober, 1922, and 12.3 per cent greater than dur ing September, 1923. This latter increase is partly seasonal, but eliminating seasonal var iations, the figures for October were larger than those for September. This is the first monthly gain in debits to individual accounts since last June, if correction is made for seas onal variations, and indicates an increase in the total volume of business being transacted in the district. Comparative figures of debits to individual accounts at banks in 21 clearing house centers MILLIONS OF OOLLARS 2800 / 2600 f 2400 \ ,9 2 ^ t 2200 ............— ... .. * *\ 9f 9 *9 9 9* / trict figures for October, 1923, show an increase of 15.5 per cent. Detailed changes in the amount of savings deposits since one month ago and one year ago as reported by the 74 banks in seven cities follow: P e r C e n t In cre a se Los A ngeles........ Oakland* ............ P o rtla n d .............. Salt Lake C ity ... San Francisco — Seattle ................ Spokane .............. . . . . . . . 13 ............ 7 .......... 9 .......... 8 .......... ist .......... 16 .......... 6 Total ............... .......... 74t ... o r D e c r e a s e (— ) O c t .. 1923. c o m p a r e d w ith O c t .. 1922 S e p t .. 1923 21.7 13.9 18.1 12.0 10.5 20.0 13.7 1.5 .5 1.4 —2.9 .0 1.4 2.6 15.5 0.7 *Includes one bank in Berkeley which was formerly a branch of an Oakland bank. fT h e consolidation o f two reporting banks has reduced their num ber by one, but has not affected the value of reported figures for comparative purposes. t i t --Vi (C) % % # - V Bank Debits* — Debits to individual accounts at banks in 21 clearing house centers were 18.3 per cent greater during October, 1923, than during Oc F o o r w eeks e n d in g O c t . 3 1 .1 9 2 3 Berkeley ............................ ....$ Long Beach....................... L os A ngeles...................... . . . . Oakland ............................. . , . Pasadena ........................... Phoenix ............................. Portland ............................ S acram en to....................... .. . . Salt Lake C ity................. . . . San D ieg o ........................... San Francisco.................... San Jose............................. . . Seattle ................................ Spokane ............................. , , Stockton ............................ . . . . Bank Debits « \% D e b i ts t o I n d iv i d u a l A o c o n n t s in 20 P r in c i p a l C i t i e s , T w e l f th F e d e r a l R e s e r v e D i s t r i c t . 1922-1923 S a v in g * A o c o n n t s in B a n k s in S e v e n P r in c i p a l C i t i e s o f t h e T w e l f th F e d e r a l R e s e r v e D i s tr i c t . 1922-1923 N u m b e r of R e p o r tin g B anks • t \ \ 1800 r 1 I V I9 2 2 t~ — t \ 2000 ► . 16,467 12,296 59,085 56,590 683,561 107,365 28,819 29,194 19,694 174,702 9,657 38,388 59,667 38,527 735,351 24,123 160,591 50,807 23,582 34,321 11,384 $2,374,171 *000 omitted. F our w eeks e n d in g N o v . 1 .1 9 2 2 $ 16,516 11,957 67,859 38,507 508,205 101,728 20,698 23,729 17,146 146,418 10,519 61,544 57,794 36,015 693,751 25,081 151,170 48,273 21,885 37,311 10,841 $2,106,947 174 MONTHLY REVIEW OF BUSINESS CONDITIONS are presented herewith, with seasonal varia tions eliminated, for the months of October and September, 1923, and October, 1922: O c t o b e r , 1923 S e p t e m b e r , 1923 O c t o b e r , 1922 $2,427,000,000 $2,335,000,000 $2,037,000,000 The detailed figures shown in Table “ C” (see preceding page) are grouped by four week per iods, and therefore are not comparable with the monthly figures which are partly estimated. Banking and Credit Situation Total loans of 65 reporting member banks in the principal cities of the district declined from $1,000,000,000 on October 10th to $992,000,000 on October 31st, and then increased to $999,000,000 on November 7th, making a net decline during the four weeks of $1,000,000. During the corresponding period a year ago total loans of the reporting banks increased $5,000,000. Investments of these banks de clined $5,000,000 during the four weeks ended November 7th, total deposits decreased $12,000, 000, and borrowings from the Federal Reserve modation from the Reserve Bank. Borrowings of member banks in leading cities from this bank have decreased $17,000,000 since Septem ber 5th, when the autumn peak was reached. Total discounts of the Federal Reserve Bank of San Francisco declined $15,000,000 during the four weeks ended November 14th, when they were $57,000,000, the lowest figure re ported since last April. Since September 5th, when they reached the autumn peak of $91,000,000, total discounts of this bank have declined $35,000,000, or 38.3 per cent. During the corresponding period a year ago, they de clined $8,000,000, or 17.6 per cent. Investments of the Reserve Bank increased $3,000,000 dur ing the four weeks ended November 14th, hav ing in the meantime (October 24th) reached the lowest point in several years. Total re- MILLIONS OF DOLLARS 320r TOTAL RESERX'ES 280 //V * 240 200 MILLIONS OF D0LLAR8 V FEDERALflESERVE NOTE CIRCULATION 160 120 60 INVEST»lENTS^* \ / A j-i. A % 4 0 ____t . ' #*< *__ ^ TOTALGILLS 01! COUNTE i i 11 _L.L i i _j..» i » » i 1922 1 9 23 T o t a l R e s e r v e s , F e d e r a l R e s e r v e N o t e C i r c u l a t i o n , B ills D i s c o u n te d , an d In v e s tm e n ts , F e d e ra l R e se rv e B a n k o f S a n F ra n c is c o too 50 COUNTS B IL L S R W A B L E A 4 0 REDIJ W IT H F E 0 E R A L f E S E R V E B A N K i i t jZJ i 1922 t i J L i__ — i i _ i __ i__ .1. ,1. __ 1__ 1__ 1923 T o t a l D e p o s i t* . L o a n * a n d D is c o u n t* , I n v e s t m e n t s , a n d B ills P a y a b le a n d R e d i s c o u n t s o f R e p o r ti n g M e m b e r B a n k s Bank decreased $9,000,000. Despite the de cline in deposits last month (possibly a tem porary movement), the general trend of de posits has been upward during recent months, at a period when total loans have remained approximately stable for nearly two months and investments have been gradually declining for five months, which probably accounts for the lessened need of member banks for accom serves increased $9,000,000 to $306,000,000, a new high record figure in the bank's history. Federal Reserve Notes in circulation declined $2,000,000. The amount of notes in circula tion has been approximately unchanged for two months, as it was at this time last year. A marked easing of interest rates at New York City was reported during the second half of October and the first part of November, the rate on time money declining from 5 y 2 per cent to 5-5 per cent and the rate on prime com mercial paper declining from 5 % per cent to 5 per cent. During the corresponding period of 1922 both rates advanced one-fourth of one per cent. Average rates charged by large San Francisco banks to their customers on prime 30-90 day loans remained during October at 5^2 per cent, although one or two banks re ported slight reductions, while the rate on 4 -6 months paper eased from 5 y -6 per cent to 5y 2 per cent. 175 FEDERAL RESERVE AGENT AT SAN FRANCISCO The acceptance market has changed little during recent weeks. City banks have been in the market only occasionally, while the in creased demand for acceptances from country banks has been of smaller proportions than is usual at this season. The rate on prime ac ceptances remains unchanged at per cent. Reports received by this bank from 35 of the principal accepting banks of this district show the follow ing changes in the amount of bills purchased and accepted during October, 1923, compared with September, 1923, and October, 1Q22 • O c t o b e r , 1923, c o m p a r e d w ith S e p t .. 1923 Am ount of bills a c c e p t e d ......... + 4 5 .7 % Am ount of bills bought ............ + 4 5 .1 % Am ount of bills held at close of month ........................................... — 33.4% O c t ., 1922 — 1.3% — 46.4% — 64.8% The principal commodities upon which these acceptances were based were coffee, lumber, wheat, fish, and raisins. PRINCIPAL RESOURCE AND LIABILITY ITEMS OF REPORTING MEMBER BANKS IN RESERVE CITIES IN TWELFTH FEDERAL RESERVE DISTRICT N o v e m b e r 7 .1 9 2 3 N u m b er o f R e p o r t in g B a n k s .................... ................................ .................... 65* Loans and Discounts (including R ediscounts)......................................$ 999,462,000 Investments ............................................................................................................ 340,815,000 Cash in Vault and with Federal Reserve B an k.................................... 118,324,000 Total D e p o s it s ....................................................................................................... 1,290,582,000 44,438,000 Bills Payable and Rediscounts with Federal Reserve Bank........... O c t o b e r 1 0 .1 9 2 3 N o v e m b e r 8 .1 9 2 2 65* $1,000,326,000 346,191,000 121,697,000 1,303,080,000 52,995,000 66* $ 882,418,000 345,708,000 114,237,000 1,233,826,000 20,652,000 *D ue to changes in the composition o f the list of reporting banks, current figures are not exactly comparable with those o f a year ago. COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN FRANCISCO AT CLOSE OF BUSINESS, NOVEMBER 14, 1923 RESOURCES N o v e m b e r 1 4 .1 9 2 3 O c t o b e r 1 7 .1 9 2 3 N o v e m b e r IS . 1922 Total R e s e r v e s ................................................................................ ..................... $306,106,000 Bills Discounted .............................................................................. .................... 56,579,000 Bills Bought in Open M arket....................................................................... 14,276,000 9,185,000 United States Government Securities....................................................... $296,789,000 71.217.000 11.394.000 9,185,000 $263,513,000 37.211.000 34.169.000 41.992.000 Total Earning A sse ts................................................................... .....................$ 80,040,000 A ll Other Resources’1' ....................................................................... ................. 69,440,000 $ 91,796,000 69.305.000 $113,372,000 61.826.000 T otal Resources............................................................................... ................. $455,586,000 $457,890,000 $438,711,000 $ 23,018,000 163,707,000 220,519,000 $ 22,760,000 143,991,000 221,984,000 50,646,000 49,976,000 $457,890,000 $438,711,000 54,031,000 48,472,000 55,333,000 46,392,000 L IA B IL IT IE S Capital and Surplus............................................................................................. $ 23,123,000 Total D ep o sits........................................................................................................ 161,691,000 Federal Reserve N otes in Actual Circulation.................... ................... 218,795,000 A ll Other L iabilitiesf......................................................................................... 51,977,000 Total Liabilities.................................................................................................$455,586,000 ♦Includes “ Uncollected Item s” ..................................................................... •¡•Includes “ Deferred Availability Item s” ................................................. 53,101,000 49,779,000 A substantial, black, cloth-covered, three-ring binder, large enough to contain one year’s (12) issues of this review, will be mailed prepaid to any address on our mailing list upon receipt of one dollar to cover actual costs. C H A N G E S IN T H E C O S T O F L IV IN G The cost of living in the United States and in the five principal cities of this district in creased during the year ending September, 1923, according to reports of the United States Department of Labor, continuing the upward trend observed in the latter part of 1922. Item ized figures show ing percentage increases or decreases (— ) from September, 1922, to Sep tember, 1923, fo llo w : Los A n g e le s S a n F ra n c is c o and P o r tl a n d O a k l a n d S e a tt l e U n ite d S t a te s Food ................. C lo t h i n g .......... H ousing .......... Fuel and Light — Furniture and Furnishings. Miscellaneous*— 4.8 3.0 2.5 1.5 3.0 5.4 — 0.8 1.9 4.4 4.1 2.9 — 3.8 3.4 2.1 — 0.5 — 2.9 6.7 3.0 2.0 — 1.3 10.6 0.6 4.6 — 2.3 6.5 — 2.3 4.1 — 0.4 9.6 0 Total ............. 2.7 1.4 2.1 1.1 3.5 This upward movement in retail prices (upon which cost of living figures are based) reflects to some extent an earlier upward movement in wholesale prices. The United States Bureau of Labor's index number of wholesale prices has ^Miscellaneous items include street car fares, m oving picture ad missions, newspapers, medical services and medicines, dentist services, spectacles, laundry, cleaning supplies, barber serviees, toilet articles, telephone and tobacco. changed during the past two years as follows (1913 p ric e s = 1 0 0 ): January, December, April, August, O ctober, 1922........... ..138 1922........... ..156 1923........... ..159 1923........... ..150 1923........... ..153 (low of 1922) (peak of 1922) (peak of 1923) (low of 1923) (latest figure) PER CEN T 120 IIO IOO SANFRAI4CISCO 9 0 —v -- *r u n 1 u n n u — •SEATTLE 60 U.S. 70 60 50 40 30 A V 20 10 O HO o . *0» A àr êy V --- **— O *—1 / DECEMIiER 191 4 PRICES o© or 2* <jo o evi UjM Q 0> UJ CM OA C h a n g e s in t h e C o s t o f L iv in g s h o w n a s P e r c e n t a g e I n c r e a s e s in c e D e c e m b e r , 1914 Detailed figures of changes in the cost of living in the United States and in the five re porting cities of this district from December, 1914, to September, 1923, are presented in the accompanying tables. COST OF LIVING IN THE TWELFTH FEDERAL RESERVE DISTRICT P e r c e n t a g e i n c r e a s e o r d e c r e a s e ( —) D e c e m b e r , 1914 to S e p t e m b e r , 1923 S e p t e m b e r , 1922 t o S e p t e m b e r , 1923, a n d J u n e , 1920 to S e p t e m b e r , 1923 r C ity Los A n g e le s... . Portland ......... , San Francisco (and Oakland) Seattle .............. United States*. . Dec.. 1914 to Sept.. 1923 —F o o d — -------------- \ June. Sept., 1922 to 1920 to Sept., Sept., 1923 1923 Dec., 1914 to Sept., 1923 — C lo th in g * ------------\ June, Sept., 1922 to 1920 to Sept., Sept., 1923 1923 t— Dec., 1914 to Sept., 1923 — H o u s i n g ----- --------- N Sept., June, 1922 to 1920 to Sept., Sept., 1923 1923 t------- F u e l a n d L;ig h t-------\ Dec., Sept., June, 1914 to 1920 to 1922 to Sept.. Sept.. Sept.. 1923 1923 1923 40.5 34.1 4.8 3.0 — 26.3 — 35.2 83.6 61.8 3.0 5.4 — 35.4 — 37.4 99.3 42.6 2.5 — 0.8 39.7 7.0 33.8 62.1 — 1.5 1.9 — 12.8 10.3 40.5 36.1 49.3 4.4 3.4 — 27.5 — 32.7 — 31.8 93.8 77.6 76.5 4.1 2.1 — 33.4 — 35.1 — 38.6 34.1 62.6 2.9 — 0.5 22.5 - - 6.9 64.4 2.0 21.8 46.2 58.2 81.3 — 3.8 — 2.9 — 1.3 — .6 — 4.5 5.4 6.7 C O ST O F LIV IN G , <Continued C ity Los A n geles. . , P o r t la n d ........... San Francisco (and Oakland) Seattle ............... United States*. Dec., 1914 to Sept., 1923 . 152.3 . 109.6 117.1 144.4 122.4 3.0 ■F u r n i t u r e Sept., 1922 to Sept., 1923 10.6 4.6 6.5 4.1 9.6 . June, 1920 to Sept., 1923 — 16.5 — 26.1 — 22.4 — 23.9 — 24.0 Dec., 1914 to Sept., 1923 101.0 76.3 79.2 96.6 101.1 h Sept., 1922 to Sept., 1923 — — — — 0.6 2.3 2.3 0.4 r June, 1920 to Sept., 1923 7.7 - - 1.8 - - .2 3.2 - .1 T Dec., 1914 to Sept., 1923 Sept.. 1922 to Sept., 1923 77.1 56.4 60.4 68.4 72.1 2.7 1.4 2.1 1.1 3.5 *Base year 1913. Those desiring this review sent them regularly will receive it without charge upon application. June, 1920 to Sept., 1923 — 12.1 — 21.9 — 18.1 — 20.0 — 20.5
@FedFRASER