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MONTHLY REVIEW OF B U S IN E S S C O N D IT IO N S F ed eral R e se rv e A g e n t F e d e ra l R e se rv e B a n k o f San F rancisco V o l. X I X San F ra n cisco , C aliforn ia , A u gu st 20, 1935 N o. 8 T W E L F T H F E D E R A L R E S E R V E D IS T R IC T C O N D IT IO N S T w e lft h D is tr ic t in d u stria l p ro d u c tio n e x p a n d ed m o d e r a te ly d u rin g J u ly , and fa c to r y e m p lo y m e n t in cre a se d m o re than sea son a lly . P e rm its fo r n e w resid en tia l b u ild in g and fo r o th e r p riv a te c o n s tru ctio n in cre a se d c o n s id e r a b ly d u rin g th e m o n th , w h ile th e v a lu e o f c o n tra cts a w a rd e d fo r p u b lic w o r k s w a s p r a c ti ca lly u n ch a n g e d fr o m Ju ne. Im p r o v e m e n t in in d u stria l p r o d u c tio n re flects p rin c ip a lly sharp r e c o v e r y in lu m b e r o u t p u t in th e D o u g la s fir re g io n , a c c o m p a n y in g se ttle m e n t o f the strik e w h ich sta rted in M a y , and season a l e x p a n sio n at fru it, v e g e ta b le , and fish can n eries. L iv e s to c k sla u g h te r w a s also co n s id e r a b ly la rg e r than in June. F o llo w in g a su b sta n tia l e x p a n s io n in Ju ne, cru d e o il o u t p u t in cre a se d o n ly slig h tly in J u ly . S o m e w h a t less than the c u s to m a r y d e cre a se to o k p la ce in p r o d u c tio n o f te x tile s and o f lea th er and ru b b e r g o o d s , as in d ica te d b y e m p lo y m e n t in th ose in d u stries. C h a n g es in o u tp u t o f m o st o th e r in d u stries fo r w h ic h in fo r m a tio n is a va ila b le w e re a p p r o x im a te ly o f sea son a l p r o p o rtio n s. D is tr ic t fr e ig h t ca rlo a d in g s, w h ic h in m o st recen t yea rs h a ve b een lo w e r in J u ly than in Ju ne, in cre a se d m o d e r a te ly in J u ly th is yea r. T h e a d v a n ce to o k p la ce ch ie fly in sh ip m en ts o f fo r e s t p ro d u c ts in th e P a c ific N o rth w e s t, a l th o u g h sh ip m en ts o f m e rch a n d ise and m is c e l la n eou s c o m m o d itie s in cre a se d b y the c u s to m a r y sea son a l a m o u n t. F o llo w in g a rise o f 8 p erce n t in Ju ne, th e a d ju ste d in d e x o f d a ily a v e ra g e d e p a rtm e n t sto re sales d e clin e d b y 4 p e rce n t d u rin g J u ly . N e w a u to m o b ile sales d ecre a se d less th an se a so n a lly d u rin g J u ly . In te rco a s ta l tra ffic w a s sm a lle r in J u ly th an in Ju ne, th e d e cre a se r e s u ltin g m a in ly fr o m sm a lle r e a stb o u n d ca rg o e s . D is tr ic t cro p s w e r e fa v o r e d b y w a rm w e a th e r d u rin g J u ly. F o r e c a s ts o f c r o p p r o d u c tio n in d ica te m o d e r a te ly la rg e r h a rv ests th is sea son than last. C ro p m a rk e tin g s d u rin g J u ly w e re a b o u t equal in v o lu m e to th o s e o f J u ly 1934, and p rice s a v e ra g e d h ig h er. In m o st parts o f th e d istrict liv e s to c k ra n g es are in e x ce p tio n a lly g o o d c o n d itio n fo r this tim e o f year. L iv e s to c k m a rk e tin g s w e r e sm a lle r in n u m b e r b u t o f m u ch b etter q u a lity th an in J u ly 1934, w h e n a n im als w e re a ffe cte d b y the d ro u g h t. C u rren t p rice s paid g r o w e r s fo r cattle are a b o u t 50 to 60 p e rce n t h ig h er than a y ea r a g o , w h ile p rice s fo r la m b s are 10 to 20 p e rcen t h ig h er. L o a n s and in v e stm e n ts o f T w e lfth D is trict c ity ban k s w e re u n u su a lly stea d y in the a g g r e g a te b e tw e e n J u ly 17 and A u g u s t 21. A c tu a l d em a n d d e p o s its flu ctu a ted rath er w id e ly b u t at th e en d o f the p e rio d w e re a b o v e the lev els o f ea rly J u ly . T h e d e clin e in tim e d e p o sits w a s so m e w h a t sm a ller than th e retu rn o f p o sta l sa v in g s (cla s sifie d as tim e d e p o sits ) b y ban k s to th e T r e a s u ry , thus in d ica tin g an in crea se in in d iv id u a l tim e d e p o sits . O v e r the p e rio d as a w h o le , th ere w a s a m o d erate o u tflo w o f fu n d s to o th e r d istricts b e ca u se o f co m m e r c ia l and finan cial tra n sa ction s, and cu rr e n cy circu la tio n in crea sed as is fr e q u e n tly the ca se at th is sea son o f th e year. T h e s e d em a n d s u p o n lo ca l b a n k in g reserves w e re m o re than o ffs e t b y su b sta n tia l U n ite d S tates T r e a s u r y d isb u rse m e n ts in e x ce ss o f c o l le ctio n s in the d istrict, and m e m b e r ban k re se rv e b a la n ces in cre a se d fu rth er. E lim in a tio n o f n a tion a l ban k n o te s fro m c ir cu la tio n w a s a c tiv e ly u n d erta k en a fte r A u g u s t 1, the d ate fo r re d e m p tio n o f the final issue o f b o n d s c a r r y in g th e n ote circu la tio n p riv ile g e . A ll fit as w e ll as unfit n a tion a l ban k n o te s r e ce iv e d at the F e d e ra l R e s e rv e ban ks are n o w b e in g w ith d r a w n p e rm a n e n tly fro m circu la tio n . D u r in g th e first th ree w e e k s o f A u g u s t re tire m e n t o f th ese n otes in the T w e lfth D is tric t to ta le d $9,224,000. Agriculture F a v o ra b le w e a th e r co n d itio n s in m o st parts o f th e T w e lfth D is tr ic t resu lted in fu rth er im p r o v e m e n t d u rin g J u ly in the o u tlo o k fo r cro p p r o d u c tio n , w h ic h is n o w e x p e cte d to b e m o d era tely la rg e r than in 1934. R e c e ip ts o f fa rm ers fro m sales o f cr o p s and liv e s to c k w e re 18 p e rce n t la rg er d u rin g the first h a lf o f 1935 than in the c o r re s p o n d in g part o f 1934, the g a in re su ltin g la rg e ly fro m 58 MONTHLY REVIEW OF BUSINESS CONDITIONS h ig h e r retu rn s fr o m liv e s to ck and liv e s to c k p ro d u cts. M a r k e tin g o f this se a so n ’s farm p ro d u cts in cre a se d s e a so n a lly d u rin g J u ly , and ap p ears to h a v e b e e n eq u a l in v o lu m e to m a r k e tin g d u r in g J u ly 1934, n o tw ith s ta n d in g the fa ct that cr o p s m a tu re d later th is sea son than last. P rice s p a id fa rm e rs w e re 15 to 25 p e rce n t h ig h e r th an in J u ly 1934 o r 1933, and w e re a b o u t 60 p e rce n t h ig h e r than in J u ly 1932, a c c o r d in g to D e p a r tm e n t o f A g r ic u ltu r e data fo r th e c o u n t r y as a w h o le . H o t w e a th e r d u r in g J u ly w a s a cco m p a n ie d b y in crea se d d e m a n d fo r th e la rg e st V a le n cia o ra n g e c r o p y e t p ro d u ce d in C a lifo rn ia , and b o th sh ip m e n ts an d p rice s a d v a n ced . S h ip m en ts e x c e e d e d th o se o f a n y p re v io u s J u ly. A n in crea se in the v o lu m e o f le m o n s m a rk eted w as a cco m p a n ie d b y a sh arp a d v a n ce in p rices, w h ic h a v e ra g e d $4.45 p e r b o x , f.o .b . C a liforn ia sh ip p in g p o in ts , co m p a r e d w ith $2.25 p e r b o x in J u ne 1935 an d $4.19 in J u ly 1934. P r o d u c t io n o f m o s t d e cid u o u s fru its in C a li fo rn ia and th e P a c ific N o r th w e s t is re la tiv e ly la rg e and o f g e n e r a lly g o o d q u a lity this y ea r. D a m a g e to W a s h in g to n a p p les b e ca u se o f hail and w in d d u r in g J u ly w a s n o t ex ten si ve and the c r o p is e x p e c te d to b e the la rg e st sin ce 1930. T h e c lin g p ea ch , pear, and p lu m cro p s are the o n ly im p o rta n t d e c id u o u s fru it cr o p s w h ic h are sm aller th is y e a r th an last. C a n n in g o f C a lifo r nia c lin g p ea ch es w a s b e g u n late in J u ly , w ith p rices to g r o w e r s a v e r a g in g a b o u t $30 p er ton , th e sam e as last y ea r. C a n n in g o f pears is a lso u n d er w a y . N o tw ith s ta n d in g a d e cre a se in pear p ro d u c tio n , p rice s p a id b y ca n n ers are b u t $30 to $35 p er to n th is y e a r, co m p a r e d w ith $40 in 1934. A lt h o u g h estim a tes o f w h e a t p r o d u c tio n in th e en tire U n ite d S tates w e re re d u ce d sh a rp ly d u rin g J u ly , fo re c a s ts o f th at cro p in th e P a cific N o r th w e s t w e r e in cre a se d and it is n o w e x p e cte d th at th e h a rv e st in that s e ctio n w ill b e w e ll a b o v e 76,000,000 b u sh els, an in crea se o f Agricultural Marketing Activity— ,---- -----July --------- N t---- Season Ito Date---- * 1934 1934 1935 1935 Carlot Shipments 15,302 6,142 11,222 3,670 Deciduous Fruits. 69,452 55,375 10,872 7,899 Citrus Fruits . . . . 63,074 12,359 8,321 61,838 Vegetables .......... Exports 545,763 545,763 166 166 Wheat (bu.) . . . . 147,708 532,749 147,708 532,749 Barley (bu.) . . . . Receipts* 86,146 522,472 548,345 77,751 Cattle ................... 167,960 918,456 1,413,103 104,961 Hogs .................... 523,133 2,476,303 2,277,188 590,173 Sheep.................... 140,174 1,257,713 1,194,512 161,620 Eggs (cases) . . . . 7,538,162 6,944,902 47,508,259 49,027,145 Butter (lbs.) . . . . 4,416 3,645 Wheat (carlots). . 3,645 4,416 564 553 564 553 Barley (carlots) .. 1054 Storage Holdings* 1935 A (end of month) June July July June 950,000 3,638,000 3,610,000 1,127,000 Wheat (bu.)........ 698,000 565,000 744,000 937,000 Beans (bags) . . . . 10,477,000 7,815,000 8,137,000 7,062,000 Butter (lbs.) 666,000 671,000 730,000 Eggs (cases) . . . . 735,000 *At principal district markets. A u g u s t 1935 11 p e rce n t o v e r last year. T h a t fig u re is still a b o u t 15 p e rce n t b e lo w a v e ra g e p r o d u c tio n fro m 1928 th ro u g h 1932. W h e a t m a rk ets h a ve im p ro v e d d u rin g re ce n t w e e k s an d p rice s p aid in th e T w e lft h D is tr ic t a d v a n ce d m o d e r a te ly , a lth o u g h less than in th e C h ic a g o m ark et. A ll o f th e m a jo r T w e lft h D is tr ic t field cro p s e x c e p t c o tto n and rice are e x p e c te d to b e la rg e r th is y e a r than last, and all e x c e p t rice are e x p e cte d to e x ce e d 1928-1932 a v e ra g e an nu al p ro d u c tio n . T h e first o fficia l c o tt o n r e p o r t o f th e y ea r fo r e c a s ts a d is trict c ro p o f 335,000 b a les, c o m pa red w ith th e 1934 cro p o f 376,000 bales. L a st y e a r ’s cro p w a s fa v o r e d b y a w a rm d ry sp rin g , w h ile c o o l w e a th e r d u r in g th e ea rly g r o w in g sea son g a v e this y e a r ’s c r o p a late start. H ig h te m p era tu res d u rin g J u ly fa v o re d g r o w th . B ea n s g r o w in g in C a lifo rn ia m a d e g o o d p r o g r e s s d u rin g J u ly and e a rly A u g u s t. T h e cr o p is n o w in g o o d c o n d itio n b u t, b e ca u se o f late se e d in g , y ie ld s w ill b e m o re th an u su a lly d e p e n d e n t u p o n fa v o r a b le w e a th e r d u rin g th e a u tu m n . T h e Id a h o b ea n c r o p is in o n ly fair c o n d itio n , trad e re p o rts in d ic a tin g co n sid e ra b le d a m a g e fro m b lig h t. B ean m a rk ets w e re sea so n a lly du ll d u rin g J u ly and e a rly A u g u s t and a v e ra g e p rices d e clin e d to th e lo w e s t p o in t o f th e year. W it h h op p r o d u c tio n o f n e a r -r e c o r d p r o p o r tion s this y ea r, ca sh p rice s p a id g r o w e r s h ave d e clin e d to a ra n g e o f fr o m 5 to 9 ce n ts p er p o u n d . L a s t y e a r sp o t p rice s ra n g e d fr o m 15 to 25 cen ts p er p o u n d , and tw o y ea rs a g o g r o w e r s re ce iv e d as h ig h as cen ts p er p o u n d . S in ce a co n s id e r a b le p art o f th e c r o p is c o v e r e d b y sales co n tr a c ts w h ic h w e re m ad e w h e n p rice s w e re h ig h e r th an n o w , it is p r o b able th at p re se n t s p o t p rice s are w e ll b e lo w a v e ra g e returns. B e e t su g a r refin eries c o m m e n c e d o p e r a tio n s e a rly in A u g u s t in C a liforn ia , b u t h a r v e s tin g o f b eets in U ta h and Id a h o w ill n o t b e g in fo r sev era l w e e k s. T h e b e e t cr o p in C a lifo rn ia is e x p e c te d to b e s lig h tly sm a ller th an in 1934, w h ile p ro d u c tio n in b o th Id a h o and U ta h is m o re than d o u b le th at o f last y ea r, w h e n u n u su a lly sm all su g a r b e e t c r o p s w e re h a rv ested in th o s e states. R e c e ip ts o f b u tte r in le a d in g d istrict m a r k ets d e clin e d as is usual d u r in g J u ly . P r o d u c tio n co n tin u e d at a c o m p a r a tiv e ly h ig h level, h o w e v e r , and p rice s d e clin e d to a le v e l o n ly m o d e r a te ly h ig h e r th an a y e a r a g o . S to ra g e sto c k s at P a c ific C o a st m a rk ets in cre a s e d c o n sid e ra b ly d u rin g J u ly and o n A u g u s t 1 w e re a b o u t 14 p e rce n t la rg e r th an a y e a r earlier. P r o d u c tio n o f e g g s has b een w e ll m a in ta in ed d u rin g recen t m o n th s and, b e ca u se o f re la tiv e ly h ig h lo c a l p rices, an u n u su a lly la rg e p art o f d is tr ic t p r o d u c tio n has b e e n sh ip p e d to P a cific C o a st m a rk ets fo r sale. P r ic e s p a id fo r e g g s 72y2 FEDERAL RESERVE AGENT AT SAN FRANCISCO A u g u st 1935 on d istrict fa rm s in J u ly w e re h ig h e r than in th e c o r r e s p o n d in g m o n th o f a n y y e a r sin ce 1929. D is tr ic t ra n ges co n tin u e to be in m u ch b e t ter co n d itio n than in a n y re ce n t yea r, a lth o u g h sea son al d e clin e s b e ca u se o f h o t w e a th e r and lack o f rains are ap p a ren t o n so -ca lle d d esert ranges. S u p p le m e n ta l fe e d s are a m p le in m o s t section s. C attle and ca lv es are in e x c e lle n t c o n d ition and are m o v in g to m a rk et in m o d e ra te v o lu m e . T h e r e is a m in im u m o f d istress se llin g o f s to c k this y ea r and, a lth o u g h p rice s h a ve d eclin ed s lig h tly sin ce m id -s p rin g , g r o w e r s are b e in g p aid m o re fo r th eir s to c k than at an y tim e sin ce 1931. T w e lft h D is tr ic t sh eep g r o w e r s are e x p e rie n cin g a fa v o r a b le yea r. T h e 1935 w o o l clip , w h ich w a s a little la rg er th an th e 1934 clip , w as m a rk eted at p rice s s lig h tly lo w e r than a y ea r a g o b u t h ig h e r th an in a n y o f th e p re ce d in g th ree yea rs. T h e n u m b e r o f lam bs raised this y e a r has b een s o m e w h a t sm a ller than in 1934, b u t p rice s h ave b een equ al to th o se o f last sea son and co n s id e r a b ly h ig h e r than in 1932 o r 1933. L a te la m b s are in the b e st c o n d ition in severa l y ea rs, and fe e d co n d itio n s are su ch as to p e rm it m o st g r o w e r s to sell in a c co rd a n ce w ith m a rk et dem an d . In d u s tr y In d u stria l p ro d u c tio n in th e T w e lfth D is trict w a s m o d e ra te ly h ig h e r in J u ly than in June. T h e in crea se resu lted la r g e ly fro m sea son al ex p a n sio n in the fo o d p r o c e s s in g in d u s tries and fro m in crea sed o u tp u t o f lu m b e r w h ich r e co v e r e d su b sta n tia lly fr o m the se v e r e ly cu rta iled le v e ls o f M a y and Ju n e w h en Employment— Oregon California-------- ^ r No. of No. of No. r - Employees — No. t— Employees — > July July of of July July 1934 Firms 1935 1934 Industries Firms 1935 20,599 17,729 All Industries* . . . 1,043 151,066 148,120 113 (+16.2) ( + 2.0) Stone, Clay, and 69 202 6,054 3 6,118 Glass Products. 54 ( + 192.8) ( + 1. 1) Lumber and Wood 10,852 9,664 39 Manufactures . . 98 13,900 12,368 (+12.3) ( + 12.4) 1,292 8 1,661 11 1,088 920 Textiles ................ ( + 28.6) (+18.3) Clothing, Millinery, 207 223 7,406 7Î and Laundering. *117 7,825 ( + 5.7) (+ 7 .7 ) Food, Beverages, 1,794 29 2,708 and Tobacco... 255 45,383 48,130 (— 5.7) (+50.9) Public Utilities . . 46 45,859 45,196 (+1 .5 ) Other Industries!. 464 64,289 61,752 (+ 4 .1 ) 4,953 4,703 Miscellaneous . . . . 44 12,463 11,490 27 (+8 .5 ) (+ 5 .3 ) Wholesale and Retail................ 187 30,156 27,303 (+10.4) ( *Public utilities, wholesale and retail figures not included in this total. ^Laundering only, f Includes the following industries: Metals, machinery, and conveyances; leather and rubber goods; oils and paints; printing and paper goods. Figures in parentheses indicate percentage change from July 1934. 59 strik e co n d itio n s had p reva iled. A c c o m p a n y in g the r e c o v e r y in lu m b e r o u tp u t, in d u stria l e m p lo y m e n t in th e P a c ific N o r th w e s t in crea sed co n s id e ra b ly . In C a liforn ia , so m e w h a t m ore than the usual sea son a l in crea se in fa c to r y e m p lo y m e n t w a s re c o r d e d d u rin g Ju ly, a lm ost e n tire ly as a resu lt o f a la rg e r than sea son al in crea se in e m p lo y m e n t at can neries. A sharp u p tu rn in lu m b e r p r o d u ctio n d u rin g J u ly p ra ctic a lly o ffs e t th e re ce ssio n w h ich had taken p la ce in M a y and Ju ne, and o u tp u t fo r the m on th w a s su b sta n tia lly h ig h e r than a year ea rlier w h e n a c tiv ity w a s cu rta iled b e ca u se o f d ifficu lties in m o v in g ca rg o e s d u rin g th e lo n g s h o r e m e n ’s strike. T h e cu rren t in crea se cam e p rin cip a lly in th e D o u g la s fir re g io n , settle m en t o f the strik e in v a rio u s lo ca litie s re su lt in g in th e re su m p tio n o f a c tiv ity in p ra ctica lly all m ills and lo g g in g ca m p s in th at district. In a d d ition , o u tp u t in the w e s te rn pin e area co n tin u e d to in crea se and w a s la rg e r than at a n y tim e sin ce 1931. D u r in g the p e rio d o f in a ctiv ity o f lo g g e r s and m ill w o rk e rs, lu m b er s to ck s in th e N o r th w e s t w e re re d u ce d to a p o in t w h e re m ills fo u n d so m e d ifficu lty in m a k in g im m e d ia te sh ip m en ts on all sp e cifica tion s, and the v o lu m e o f u nfilled ord e rs in creased sh a rp ly. A t th e end o f J u ly th ese u n filled ord e rs w e re a p p r o x im a te ly 10 p e rce n t la rg er than a y e a r earlier. T e m p o r a r ily in te rru p te d d u rin g Ju ne, e x p a n sion w h ic h had taken p la ce sin ce th e first o f this y e a r in v a lu e o f resid en tia l b u ild in g p er m its w a s resu m ed d u rin g Ju ly. P e rm its issu ed fo r resid en tia l c o n s tr u c tio n in th e tw e n ty la re e r cities o f th e d istrict a p p ro x im a te d m illio n d olla rs in th at m o n th , n ea rly d o u b le the fig u re fo r J u ly 1934. C o m m e rcia l and in du strial b u ild in g u n d erta k in g s e x ce e d e d th ose 2y2 Industry — Indexes of daily average production, adjusted for seasonal variation (1923-1925 daily average=100) ,----------- 1935 July June May General Carloadings— Industrial. 56 40 42 Elee. Power Production 15011 159 154 Manufactures 49 If 35 38 Refined Mineral Oilsf.. 142 142 135 10611 106 117 51 49 59 Wool Consumption!. . . . 1851T 105 134 Slaughter of Livestock.. 10311 931Ï 100 Minerals Petroleum (California)!. 85 84 75 Lead (United States) $ .. 55 63 Silver (United States) $. 47 51 Building and Construction# Total .............................. 401Ï 40 39 Building Permits— Value Larger Cities.............. 2311 21 22 Smaller Cities............ 35 30 28 Engineering Contracts Awarded— Value T otal........................ 58 63 61 Excluding Buildings 98 108 116 -1934 Apr. July June May 55 42 47 44 149 147 155 148 53 124 114 64 139 94 38 131 95 58 80 118 40 130 89 61 84 53 130 97 74 72 58 49 78 53 40 78 56 45 66 44 38 64 39 29 23 25 16 10 9 15 19 60 114 69 263 77 151 56 114 101 110 111 74 10 1'N'ot adjusted for seasonal variation. ^Prepared by Federal Re serve Board. #Indexes_ are for three months ending with the month indicated. ^Preliminary. 60 MONTHLY REVIEW OF BUSINESS CONDITIONS in a n y o th e r m o n th th is y e a r and p erm its issu ed fo r m o d e r n iz a tio n and rep a ir o f e x is t in g stru ctu re s o f all ty p e s w e re a lso la rg e r than in a n y ea rlier m o n th o f th is year. P u b lic w o r k s co n tra cts re m a in e d su b sta n tia lly u n ch a n g e d fr o m lev e ls o f th e p r e c e d in g m on th . U p to A u g u s t 13, n o c o n tra cts had b een a w a rd e d in th is d is tr ic t o n p r o je c t s co n te m p la te d u nder th e W o r k s P r o g r e s s A d m in is tr a tio n n o r had a llo tm e n ts o f fu n d s b een m a d e e x c e p t in the case o f h ig h w a y s an d roa d s. D a ily a v e ra g e cru d e o il o u tp u t in C a liforn ia a m o u n te d to 562,000 b a rrels in J u ly , slig h tly la rg e r than in J u n e w h e n c o n sid e ra b le e x p a n sion o cc u r r e d a fte r th e w ith d ra w a l o f F ed era l C o d e re s trictio n s. R e fin e r y o u tp u t o f oils and g a s o lin e w a s a b o u t th e sam e as in June. In v e n tories o f b o th c ru d e and refined o ils w e re r e d u ce d d u r in g th e m o n th . S ea son a l e x p a n sio n in m a n u fa ctu re o f fo o d p ro d u cts w a s r e c o r d e d d u rin g J u ly and ea rly A u g u s t. In C a lifo rn ia , th e p a ck o f ca n n ed a p ri co ts , re p o rte d b y th e tra d e to be s lig h tly la rg er than last y ea r, w a s c o m p le te d d u r in g J u ly , and ca n n in g o f p e a ch e s and pears c o m m e n c e d a b o u t A u g u s t 1. In th e P a c ific N o r th w e st, ca n n eries w e re p u ttin g u p th e la r g e s t p a ck o f p ea s y e t p ro d u ce d in th is d istrict, estim a ted at fr o m 1,700,000 cases to m o re than 2,000,000 cases. A lth o u g h B r is to l B a y in A la sk a w a s re o p e n e d to c o m m e rc ia l fish in g ea rly in J u ly , th e p a ck o f sa lm on in th at area w a s estim a ted at th e clo se o f th e sea son to h a v e b een o n ly 240,000 cases. T h a t a m o u n t is less th an 15 p e r ce n t o f th e 1934 p a ck in B ris to l B a y. S in ce the b u lk o f all A la sk a red sa lm o n is ca n n ed in B risto l B a y , th ere w ill be a rela tiv e sh o rta g e o f this v a rie ty d u rin g the c o m in g y ea r, and q u o ta tio n s h a v e been in crea sed sh a rp ly. R e fin in g o f b e e t su g a r c o m m e n c e d in C a li fo rn ia in A u g u s t. P r o d u c tio n in th e d istrict th is y e a r is e x p e c te d to e x ce e d th at o f 1934 c o n s id e r a b ly , fo r e c a s ts o f the b eet c ro p this y ea r b e in g a b o u t 30 p e rce n t a b o v e the 1934 cro p . O u t pu t o f flo u r m ills w a s a b o u t the sam e in J u ly as in J u n e, a fte r a llo w a n c e fo r a sm all sea son a l d e clin e. S e a s o n a lly a d ju s te d figu res o f liv e s to c k sla u g h te r in cre a se d sh a rp ly d u rin g J u ly , o f f se ttin g a d e cre a se in th e p r e c e d in g m on th . C a lifo rn ia w in e p r o d u c tio n fo r th e cu rre n t v in ta g e has b e e n fo r e c a s t at a p p r o x im a te ly 50 m illio n g a llo n s . O f th is tota l, 35 m illio n g a l lon s is e x p e c te d to b e o f th e sw e e t o r fo rtifie d v a rieties and 15 m illio n s o f th e d r y o r natural v a rieties. In 1934, w in e p r o d u c tio n in C a lifo rfo rn ia to ta le d 48,557,000 g a llo n s. T h e a c c o m p a n y in g ch a rt in d ica tes ch a n g e s in in d u stria l e m p lo y m e n t in th e P a c ific C o a st states b y m o n th s d u r in g th e p ast th ree and o n e h a lf y ea rs. D a ta u sed in c o n s tru ctio n o f this ch a rt are n o t a d ju ste d fo r c u s to m a r y sea son a l ch a n g es and th u s in d ica te th e actu al m o n th -to - A u g u s t 1935 m o n th la b o r re q u ire m e n ts in m a n u fa c tu rin g esta b lish m en ts as w e ll as the tren d o f e m p lo y m en t d u rin g th e p e rio d co v e r e d . In C a liforn ia , e m p lo y m e n t is s u b je c t to s o m e w h a t e x tre m e sea son a l flu ctu a tion s. T h e s e w id e m o v e m e n ts la r g e ly reflect ch a n g e s in th e n u m b e r o f p e rso n s e n g a g e d in p r o c e s s in g sea son a l and re la tiv e ly p erish a b le a g ricu ltu ra l c o m m o d itie s , su ch as the c a n n in g and p r e s e r v in g o f fru its and v e g e ta b le s and the refin in g o f b e et su gar. In O r e g o n and W a s h in g to n , th e u n a d ju s te d in d e x e s o f e m p lo y m en t are in flu en ced p r e d o m in a n tly b y c o n d i tion s in the lu m b e r in d u stry . In th a t in d u stry as in n ea rly all oth ers sea son a l flu ctu a tio n s are im p orta n t. In a d d itio n , sev era l h ig h ly sea son a l a ctiv itie s su ch as fru it, v e g e ta b le , and fish ca n n in g are im p o rta n t in th at re g io n . PERCENT INDUSTRIAL EMPLOYMENT Indexes not adjusted for seasonal variation. Based upon reports of United States Bureau of Labor Statistics. July figures for Oregon and Washington preliminary. (1923-1925 average=100). E m p lo y m e n t in C a lifo rn ia te n d e d d e fin itely u p w a rd d u rin g 1933 and 1934. In cre a se s d u rin g the first sev en m o n th s o f 1935 w e r e o f a b ou t sea son a l p ro p o r tio n s , a lth o u g h th e n u m b e r o f w o r k e r s a v e ra g e d 4 p e rce n t h ig h e r than in the c o m p a ra b le p e rio d o f 1934. In d u stria l p a y ro lls in th e first sev en m o n th s o f 1935 a v e ra g ed 12 p e rce n t h ig h e r than in th e c o r r e s p o n d in g m o n th s o f 1934, a resu lt in p a rt o f lo n g e r a v e r a g e w o r k in g tim e p er e m p lo y e e . In W a s h in g ton and O r e g o n , in d u stria l e m p lo y m e n t in cre a sed su b sta n tia lly d u r in g 1933 and s h o w e d fu rth e r g a in s in 1934. A sh arp re d u c tio n to o k p la ce a fte r S e p te m b e r 1934, h o w e v e r , and in d e x e s o f e m p lo y m e n t in th o se states d e clin ed b e lo w the lev els o f th e p r e c e d in g w in te r. S om e im p r o v e m e n t t o o k p la ce in th e e a rly sp r in g o f 1935, b u t this te n d e n cy w a s cu r b e d b y th e strike o f lu m b e r m ill w o r k e rs and lo g g e r s in M a y and June. T h e strik e d id n o t ca u se a n et d e crea se in to ta l e m p lo y m e n t in O r e g o n , sin ce a c tiv ity in th e w e ste rn p in e re g io n w a s stim u la ted b y th e d ecrea sed o u tp u t o f D o u g la s fir. In W a s h in g to n , th e e ffe cts o f th e strik e in th e D o u g la s fir area w e re m o re a p p a ren t in th e r e c o r d o f to ta l in d u stria l e m p lo y m e n t. In b o th states, a sharp in crea se d u rin g J u ly in th e n u m b e r o f w o r k e r s e m p lo y e d in r e p o r tin g in d u strie s is in d ica te d b y p re lim in a ry sta tistics. FEDERAL RESERVE AGENT AT SAN FRANCISCO A u g u st 1935 T rad e T h e n u m b e r o f fr e ig h t cars lo a d e d on T w e lfth D is tr ic t ra ilroa d s in cre a se d d u rin g Ju ly, w h erea s a su b sta n tia l d e clin e u su a lly o c cu rs in that m o n th . A s a resu lt o f th e in crea se this yea r, th e s e a so n a lly a d ju s te d in d e x a d v a n ce d fr o m 62 to 70 p e r c e n t o f th e 1923-1925 a vera ge. T h e e x p a n sio n in to ta l lo a d in g s d u r in g J u ly w a s a re fle ctio n p r in c ip a lly o f r e c o v e ry in lu m b e r sh ip m en ts fr o m th e restricted levels o f the tw o p r e c e d in g m o n th s, a lth o u g h o th e r in d u stria l fr e ig h t sh ip m en ts in crea sed and sh ip m en ts o f m e rch a n d ise in cre a se d b y the c u s to m a r y a m o u n t in J u ly. T o ta l lo a d in g s w ere slig h tly lo w e r than in J u ly 1934, w h e n sh ip m en ts b y rail w e re stim u la ted b y the lo n g sh o re m e n ’s strike. RETAIL TRADE—Twelfth District Percentage changes in value of sales and stocks t---------- 1935 compared Department Stores........ Los Angeles................ Other So. California.. Oakland ...................... San Francisco............ Bay Region................ Central California . . . . Portland!.................... Seattle ........................ Spokane ...................... Tacomaf .................... Salt Lake C it y .......... Apparel Stores .............. Furniture Stores .......... All Stores ...................... /----- NET SALES------ , Jan. 1 to end of July* July 18.0 ( 73) 9.8 15.6 ( 6) 10.0 28.4 ( 9) 16.0 22.6 ( 5) 11.1 24.4 ( 8) 8.5 22.9 ( 18) 9.4 16.0 ( 6) 15.8 24.3 ( 8) 11.7 12.3 ( 4) 5.8 17.1 ( 5) 11.7 14.0 ( 8) 8.9 11.4 ( 4) 6.2 24.5 ( 43) 14.8 42.6 ( 34) 23.7 21.7 (150) 11.8 with 1934 y STOCKS July — 1.3 ( 54) — 7.2 ( 6) 2.7 ( 5) 7.9 ( 5) 0.1 ( 7) 2.3 ( 16) 3.9 ( 6) — 0.8 ( 7) 4.5 ( 4) 6.7 ( 5) 10.8 ( 7) — 7.8 ( 4) — 2.3 ( 29) — 0.4 ( 26) — 1.2 (109) *July 1935 had one more trading day than July 1934. flncludes five apparel stores each in Portland and Tacoma which are not included in district department store total. Figures in parentheses indicate number of stores reporting. D a ily a v e ra g e d ep a rtm en t sto re sales w e re a b o u t 10 p e rce n t sm a lle r in J u ly than in Ju ne, a d ecrease s o m e w h a t g re a te r than has b een c u s to m a ry in J u ly . T h e s e a so n a lly a d ju ste d in d ex d eclin ed m o d e r a te ly fr o m 86 p e rce n t o f the 1923-1925 a v e ra g e in Tune, a fig u re h ig h e r than in an y m o n th sin ce F e b r u a r y 1932, to 83 p er- Distribution and Trade — Carloadingst Total ...................... Merchandise ........ Intercoastal Trade Total ...................... Westbound............ Eastbound ............ Retail Trade Automobile Sales$ Total ................ Passenger.......... Commercial . . . . Department Store Sales$ ................ Stocks§ .............. Collections# Regular ................ Installment.......... ,------------ 1935-------------N ,--------1934--------* July June May Apr. July June May Indexes adjusted for seasonal variation (1923-1925 average=100) 72 66 70 62 64 73 67 90 82 82 89 92 85 84 47 37 63 89 54 76 93 71 60 81 52 48 75 41 64 67 62 79 73 82 105 92 198 94 87 175 95 87 184 108 103 161 71 63 128 62 58 105 61 55 125 88 83 62 86 80 83 73 74 73 62 61 63 65 66 ---Actual Figurest 47.1 48.2 48.9 47.6 “ 44.6 46.7 47.4 17.6 16.7 17.7 17.7 17.3 15.3 17.5 63 $Daily average. §At end of month. #Percent of collections dur ing month to amount outstanding at first of month. 61 ce n t in J u ly. D e cre a s e s in a d ju ste d sales w ere c o n ce n tra te d in San F ra n c is c o and O a k la n d , a lth o u g h th ere w a s a sm all d e clin e in S p ok an e. In d e x e s fo r all o th e r m a jo r cities o f the d istrict rem ain ed u n ch a n g e d o r a d v a n ced s lig h tly . S ales w e re 18 p e rce n t la rg e r this J u ly than in J u ly 1934, a lth o u g h retail p rices o f d ep a rtm en t sto re g o o d s , as m ea su red b y the F a irch ild in d ex, w e re 3 p e rce n t lo w e r. In v e n to rie s o f d is trict d ep a rtm en t stores d ecrea sed a little m o re than s e a so n a lly d u rin g J u ly and at th e end o f th e m o n th w e re s lig h tly sm a ller in v a lu e than a y ea r earlier, p a rtly b eca u se o f p rice re d u ction s. S ales o f n e w p a sse n g e r a u to m o b ile s d e cre a sed d u rin g J u ly b u t the re d u ctio n fro m the June lev el w as sm a lle r than is cu sto m a ry . Sales o f c o m m e r c ia l v e h icle s in crea sed s lig h tly fu r th er d u rin g the m o n th . T o ta l n e w ca r re g istra tio n s w e re 42 p e rce n t la rg er than in J u ly 1934. In te rco a sta l sh ip m en ts th rou g h the P a n am a C anal a m o u n te d to 481,000 ton s in J u ly. T h is to ta l w as 70,000 to n s sm a ller than in Ju ne and w a s lo w e r than in a n y o th e r m o n th th is year. T ra ffic is o rd in a rily at re la tiv e ly h ig h lev els in J u ly , b u t th is y ea r lu m b er and p e tr o leu m sh ip m en ts to th e A tla n tic C o a st w e re m u ch sm a ller than usual and o th e r ea stb ou n d c a r g o a lso d eclin ed . S h ip m en ts fr o m th e A t la n tic to the P a c ific C oa st w e re fa ir ly w e ll m a in ta in ed d u rin g th e m o n th . T h e re la tiv e ly sm all tota l o f in te rco a sta l c a r g o d u rin g J u ly th is y e a r w as a b o u t equ al to that o f J u ly 1934, Bank Debits* — Arizona Phoenix .......... $ California Bakersfield Berkeley .......... Long Beach . . . Los Angeles . . . . Oakland .......... Pasadena ........ Sacramento . .. . San Bernardino San Diego San Francisco . . . San J o se .......... Santa Barbara . Santa Rosa Stockton.......... Idaho July 1935 30,586 $ July 1934 27,231 First seven months 1935 1934 $ 211,845 $ 177,986 11,142 16,764 20,243 32,128 699,389 177,652 22,463 108,464 7,238 45,386 859,085 19,864 10,332 4,131 16,203 8,179 16,615 15,496 23,703 538,326 151,204 17,189 60,132 5,790 28,777 657,647 17,544 8,547 2,955 14,559 76,750 104,257 136,831 201,838 4,525,653 1,132,892 145,952 673,580 51,846 282,250 5,357,149 123,567 66,967 25,323 105,661 58,524 136,002 113,598 157,516 3,788,202 1,110,067 130,466 365,895 40,086 208,254 4,760,275 108,121 55,756 20,634 93,652 16,040 13,100 98,644 77,760 9,430 8,087 56,553 50,126 5,237 143,837 15,022 3,858 114,984 12,132 31,786 925,922 85,480 26,716 825,911 72,291 13,388 53,629 11,204 46,264 84,860 359,910 79,328 322,265 4,842 4,626 151,782 37,531 22,949 5,385 10,363 4,474 4,644 134,130 29,874 20,745 4,651 8,965 32,716 36,587 1,031,258 241,292 164,090 30,363 73,297 31,409 35,601 935,341 199,743 153,169 27,719 63,629 Nevada Oregon Portland .......... Utah Salt Lake City . Washington Bellingham . . . . Spokane .......... Walla Walla . . . Total ........ ,$2,575,131 *In thousands of dollars. $2,011,006 $16,475,119 $14,226,042 62 MONTHLY REVIEW OF BUSINESS CONDITIONS w h en sh ip m e n ts w e re re stricte d b y th e lo n g s h o re m e n ’s strike. V a lu e o f w h o le s a le sales in crea sed 2 p e rce n t d u rin g J u ly . D e c r e a s e s in sales o f a g ricu ltu ra l im p lem en ts, e le c tr ic a l su p p lies, and h a rd w a re w ere in a c co r d a n c e w ith the usual te n d e n cy in WHOLESALE TRADE—Twelfth District Percentage changes in value of sales Agricultural Implements.... Automobile Supplies............ Drugs ...................................... Dry Goods.............................. Electrical Supplies .............. Furniture................................ Groceries ................................ Hardware................................ Shoes ...................................... Paper and Stationery............ All Lines ................................ July 1935 ,---- compared with---- s June 1935 July 1934 — 19.5 77.3 3.4 13.4 2.6 14.2 9.4 19.1 — 4.2 46.4 2.7 62.6 7.9 13.4 — 3.3 26.4 0.4 4.6 3.8 25.8 1.8 22.8 Cumulative 1935 compared with 1934 66.9 8.9 4.9 7.1 30.7 26.1 11.0 13.3 — 4.5 12.5 13.3 th at m o n th . S a les o f a u to m o b ile su p p lies, d ru g s, fu rn itu re , an d g r o c e r ie s e x p a n d e d in co n tra st w ith se a so n a l e x p e c ta tio n s . S ea son a l in crea ses w e r e r e p o rte d b y w h o le sa le rs o f d ry g o o d s , sh o e s, and p a p e r and sta tio n e ry . A s co m p a re d w ith a y e a r earlier, to ta l sales in crea sed 23 p e rce n t, th e la rg e st y e a r -p e rio d in crea se in a n y m o n th s in ce A p r il 1934. W h o le sale p rice s o f fin ish ed g o o d s , a c c o r d in g to the U n ite d S tates B u re a u o f L a b o r in d e x , w e re 5 p e rce n t h ig h e r in J u ly th is y e a r than last. P r ic e s A ft e r flu ctu a tin g w ith little n et ch a n g e d u r in g J u ly , w h o le s a le c o m m o d ity p rice s a d v a n ce d s lig h tly in th e first h a lf o f A u g u s t. A s in oth er . . . . . . Commercial Treasury Operations Operations + 8.6 — 12.0 + 5.6 — 19.3 + 9.8 — .5 + 50.2 — 15.3 — 19.7 + 11.0 — 11.3 + .2 + 7.7 + -7 — 10.2 + 3.8 — 7.6 + 4.5 + 14.6 — 2.2 + 1.9 — 2.6 Total Supply — 3.3 — 10.0 + 5.3 + 35.6 — 8.6 — 11.3 + 8.3 — 6.9 — 1.3 + 10.4 — 0.3 USES OF FUNDS Demand for Week Ending Currency 1935— June 12----- . — 2.8 .3 June 1 9 . . . . . + — 1.4 June 26. . . . July 3 . . . . . +13.4 July 1 0 . . . . . — 5.0 — 3.8 July 1 7 . . . . July 2 4 . . . . . — 2.9 .6 July 3 1 . . . . . + August 7 .. . + 4.7 August 14. . . + 1.9 August 21.. . — 1.0 *Change less than $50,000. Member Bank Reserve Deposits — 4.9 — 5.2 + 7.6 + 23.3 — 3.8 — 5.3 + 11.2 — 7.5 — 5.9 + 8.7 + 3.5 Other F.R.B. Accounts + 4.4 — 5.1 — .9 — 1.1 + -2 — 2.2 * * — .1 — .2 — 2.8 8]/2 /----------------- Condition----------------- ^ Aug. 21 Aug. 14 July 17 Aug. 22 1935 1935 1934 1935 201 201 201 167 SOURCES OF FUNDS Reserve Bank Credit + .1 + 3.7 — 4.0 + .7 + .1 — .2 — .] — .5 + 1.8 — 2.0 + .4 re ce n t m o n th s, the in cre a se t o o k p la ce p rin cip a lly in p rice s o f fa rm p r o d u cts and fo o d s . P a c k e r s ’ o p e n in g p rice s o n d ried a p r ico ts, an n o u n ce d in m id -J u ly at 13 cen ts p e r p o u n d , w e re a p p r o x im a te ly 3 cen ts lo w e r th an in 1934. A ft e r d e c lin in g fr o m th e o p e n in g , q u o ta tio n s fo r this p r o d u c t r e c o v e r e d and in m id -A u g u s t w e r e s lig h tly h ig h e r th an a m o n th earlier. Q u o ta tio n s o n all o th e r m a jo r C a lifo rn ia d ried fru its d e clin e d fu rth e r fr o m m id -J u ly to m id A u g u s t. D o m e s tic c o p p e r q u o ta tio n s in N e w Y o r k rem a in ed ste a d y d u r in g J u ly and ea rly A u g u s t at 8 cen ts per p o u n d b u t a d v a n ce d to cen ts o n A u g u s t 19. E x p o r t p rice s a d v a n ce d s lig h tly to 8.15-8.20 cen ts p er p o u n d o n A u g u s t 20. L ea d and z in c p rice s in cre a se d fr a c tio n a lly . T h e s p o t p rice fo r silv er, o th e r than th at re p re se n t in g n e w d o m e s tic p r o d u c tio n , w a s s te a d y at 67^4 cen ts p e r o u n c e fo r sev era l w e e k s b u t o n A u g u s t 13 d e clin e d sh a rp ly and o n A u g u s t 20 w a s q u o te d at 65^g ce n ts p e r o u n ce . N e w ly m in ed d o m e stic silv e r c o n tin u e s to be p u rch a sed b y th e M in t at 77.57 cen ts p e r fine o u n ce . P r ic e s o f fo o d at retail in th e la r g e r p o p u la tio n cen ters o f the d istr ic t a v e ra g e d s lig h tly lo w e r at the end o f J u ly th an in th e la tter p art o f Ju ne. In th e fo u r w e e k s e n d in g J u ly 30, B u rea u o f L a b o r S ta tis tic s ’ retail fo o d p rice in d e x e s fo r S ea ttle and S alt L a k e C ity d e clin e d a p p r o x im a te ly 2 p ercen t. In d e x e s fo r L o s A n g e le s and P o rtla n d w e re p r a c tica lly u n ch a n g e d , w h ile th e in d e x fo r San F r a n c is c o -O a k la n d a d v a n ce d fra ctio n a lly . FEDERAL RESERVE BANK OF SAN FRANCISCO (in millions of dollars) SOURCES AND USES OF BANKING RESERVES Twelfth District Changes in millions of dollars during the weeks indicated Week Ending 1935— June 12----June 1 9 . . . . June 26.. .. July 3 . . . . July 10. . . . July 1 7 . . . . July 2 4 . . . . July 3 1 . . . . August 7 .. August 14. . August 21. . A u g u s t 1935 Total Demand — 3.3 — 10.0 + 5.3 + 35.6 — 8.6 — 11.3 + 8.3 — 6.9 — 1.3 + 10.4 — 0.3 Total Bills and Securities........ Bills Discounted.................... Bills Bought.......................... 199 United States Securities. . . . 365 Total Reserves.......................... Total Deposits.......................... . 308 Federal Reserve Notes in Circulation............................ . 240 Ratio of Total Reserves to De posit and Federal Reserve Note1 Liabilities Combined... 66.7% 199 361 304 Ì 99 348 306 Ì 66 319 257 238 226 210 66.5% 65.5% 68.2% REPORTING MEMBER BANKS—Twelfth District (in millions of dollars) ■Condition Aug. 21 Aug. 14 July 17 Aug. 22 1934 1935 1935 1935 1,874 1,920 1,915 Loans and Investments— Total. ,. 1,925 884 862 864 Loans— T o ta l.......................... . 868 224 175 171 170 On Securities........................ 689 660 692 697 All Other.............................. 990 1,056 1,057 Investments— Total .............. 1,053 622 616 United States Securities. . . 606 604 440 368 451 449 Other Securities.................. 179 176 173 133 Reserve with Reserve Bank. . . . 824 829 806 657 Net Demand Deposits................ 951 945 950 Time Deposits.............................. 943 207 220 214 178 Due from Banks.......................... 227 222 215 195 Due to Banks.............................. Borrowings at Reserve Bank. . . A u g u st 1935 FEDERAL RESERVE AGENT AT SAN FRANCISCO T h e C re d it S itu a tio n T o ta l loa n s and to ta l in v e stm e n ts o f T w e lfth D is tr ic t c ity ba n k s rem a in ed p ra ctic a lly u n ch a n g ed in v o lu m e b e tw e e n J u ly 17 and A u g u st 21. L o a n s on secu rities d e clin e d s lig h tly to th e lo w e s t p o in t o f th e yea r, n o tw ith sta n d in g in creases in a c tiv ity and p rice s on d istrict sto ck ex ch a n g e s. T h is d e cre a se in se c u rity loan s w as o ffs e t b y a sm a ll e x p a n sio n in all o th e r loans. H o ld in g s o f U n ite d S tates G o v e rn m e n t se cu ri ties co n tin u e d to d ecrea se bu t, as in o th e r recen t m on th s, in v e stm e n ts in secu rities g u a ra n teed as to p rin cip a l and in terest b y th e F e d e ra l G o v e r n m en t a d v a n ce d . O th e r secu rities, re p re se n tin g la rg e ly c o r p o r a te b o n d s, in cre a se d so m e w h a t d u rin g the p e rio d u n d e r re v ie w . T h e re d u ctio n in G o v e r n m e n t se cu ritie s resu lted fr o m sales o u tsid e th e T w e lft h D istrict. D e m a n d d e p o sits o f c ity b an k s, w h ich had been in crea sed te m p o ra r ily e a rly in J u ly b y a su bstan tia l tra n sfe r o f fu n d s in to the d istrict in c o n n e c tio n w ith a la rg e co r p o r a te re fu n d in g tra n sa ctio n , d e clin e d in the latter h a lf o f the m o n th and th e first w e e k o f A u g u s t. A sharp in crea se in d em a n d d e p o sits o n A u g u s t 14 w as ca u sed o n ly in part b y an u n u su al ch e ck cle a r in g situ a tion fo llo w in g th e le g a l h o lid a y in C ali fo rn ia on T u e s d a y , A u g u s t 13. E x p a n sio n in d em a n d d e p o sits o f city b a n k s d u rin g that w e e k w a s su fficien t to b rin g th em to the h ig h e st p o in t r e co rd e d th is y ea r, n ear w h ich lev el th e y re m ain ed on A u g u s t 21. T im e d e p o sits d e crea sed so m e w h a t d u rin g J u ly and A u g u s t, b u t the n et d e clin e w a s sm a ller th an th e a m o u n t o f tim e d ep osits v o lu n ta r ily retu rn ed b y ban k s to the 63 P o s ta l S a v in g s S y ste m , in d ic a tin g th a t tim e d e p o sits o f in d iv id u a ls in crea sed fu rth er. P a rt o f th e in crea se in ban k d e p o sits d u rin g the five w e e k s e n d in g A u g u s t 21 resu lted fro m the fa ct that the U n ite d S tates T r e a s u r y d is b u rsed 26 m illio n d olla rs m o re in the T w e lfth D is tr ic t than it c o lle c te d in ta x es and b o r r o w in gs. T h is net c o n tr ib u tio n o f th e F ed era l G o v ern m en t to lo ca l fu n d s rep resen ted , in a d d ition to the usual G o v e r n m e n t se rv ice s, su bstan tial p a y m e n ts in c o n n e c tio n w ith the e m e rg e n cy re lie f and p u b lic w o r k s p ro g ra m . S u ch p a y m en ts en tered d is trict ban ks a lm o st im m e d ia tely in the fo r m o f d ep osits. A t th e sam e tim e, h o w e v e r , d e p o s its w ere d ra w n d o w n b y th e usual te n d e n cy fo r this d istrict to p a y m ore to o th e r d istricts than it rece iv e s th ro u g h c o m m ercia l tra n sa ctio n s , a resu lt o f th e fa c t that th e T w e lfth D is tr ic t as a w h o le p u rch a ses m ore g o o d s , in v estm en ts, and se rv ice s fro m o th e r d is tricts than it sells to th em . In a d d ition to the net m o v e m e n t o f fu n d s to o th e r d istricts, lo ca l d em a n d fo r c u r r e n c y fo r circu la tio n in crea sed $3,300,000, thus ta k in g th at a m ou n t o f d e p osits ou t o f d istrict ban k s. A n in crea se in d em a n d fo r cu rr e n cy , co n fin e d to the sm a ller d e n o m in a tion s, is cu s to m a r y at this season , and reflects m a in ly re q u ire m e n ts fo r w a g e p a y m e n ts and ge n e ra l trade. T h e to ta l o f the fa cto r s w ith d r a w in g fu n d s fr o m d istrict ba n k s w a s less than the net d is b u rse m e n t o f T r e a s u r y fu n d s, and b a la n ces ca r ried b y d istrict ban k s w ith the F e d era l R e se rv e B an k o f San F r a n c is co in crea sed to th e h ig h est p o in t o n record . S U M M A R Y O F N A T IO N A L C O N D IT IO N S Prepared by the Federal Reserve Board F a c to r y e m p lo y m e n t and o u tp u t w e re m a in ta in ed in J u ly at the Ju n e le v e l, th o u g h u su a lly th ere is a co n s id e ra b le d e clin e at this season . A c t iv it y at m in es s h o w e d a su b sta n tia l d e crea se, re fle ctin g a sharp re d u c tio n in o u tp u t o f coa l. P r o d u c t io n an d E m p lo y m e n t. T h e F ed era l R e s e r v e B o a rd 's se a so n a lly a d ju ste d in d e x o f m a n u fa ctu re s s h o w e d an in crea se in J u ly , w h ile th e in d e x o f m in era l p r o d u c tio n s h o w e d a m ark ed d eclin e w ith th e c o n s e q u e n ce that the in d e x o f in d u stria l p r o d u c tio n rem a in ed u n ch a n g e d at 86 p e rce n t o f th e 1923-1925 a verage. F o r th e first seven m o n th s o f th e y ea r, in d u s trial o u tp u t w a s 6 p e rce n t la rg e r than a y ea r a g o . A c t iv it y at steel m ills, w h ic h had d eclin ed d u rin g June, a d v a n ced c o n s id e ra b ly d u rin g J u ly and the first th ree w e e k s o f A u g u s t and th ere w a s a lso a su b sta n tia l in crea se in th e o u t pu t o f lu m b er. A u t o m o b ile p r o d u c tio n s h o w e d a d ecrea se fro m the h ig h le v e l p re v a ilin g earlier in th e y ea r, re fle ctin g in p a rt sea son al d e v e lo p m e n ts. O u tp u t o f te x tile s in cre a sed s o m e w h a t in J u ly , o w in g ch ie fly to in crea sed a ctiv ity at silk m ills. In th e w o o le n in d u stry , the recen t h ig h rate o f a c tiv ity c o n tin u e d , w h ile at c o tto n m ills d a ily a v e ra g e o u tp u t d e clin ed b y a b o u t the u su al sea son a l a m ou n t. M ea t p a c k in g rem a in ed at an u n u su a lly lo w level. A t m in es, o u tp u t o f b itu m in o u s co a l d e cre a sed sh a rp ly in J u ly , fo llo w in g an a d v a n ce in th e p r e c e d in g m o n th , and th ere w a s also a sharp re d u ctio n in o u tp u t o f an th racite. F a c to r y e m p lo y m e n t, w h ich u su a lly d eclin es at this season , s h o w e d little ch a n g e fr o m th e m id d le o f Ju ne to th e m id d le o f July. E m p lo y m en t in cre a se d so m e w h a t in th e m a ch in ery , lu m b er, fu rn itu re, and silk in d u stries and th ere MONTHLY REVIEW OF BUSINESS CONDITIONS 64 w as a la rg e se a so n a l in cre a se in th e ca n n in g in d u stry. D e cr e a s e s o f a sea son a l ch a ra cte r w e re re p o rte d fo r e sta b lish m e n ts p r o d u c in g c o tto n g o o d s an d w o m e n ’s c lo th in g , w h ile in th e a u to m o b ile in d u s try e m p lo y m e n t d e clin e d b y m ore than th e u su al sea son a l a m ou n t. A t co a l m ines, e m p lo y m e n t s h o w e d a m a rk ed d ecrea se in July. T h e to ta l v a lu e o f co n s tr u c tio n c o n tra cts a w a rd ed , as r e p o rte d b y the F. W . D o d g e C o r p o ra tio n , in cre a se d fu rth e r in J u ly and the first h alf o f A u g u s t, re fle c tin g an in crea se in n o n -re sid e n tia l p r o je c ts . R e sid e n tia l b u ild in g co n tin u e d in c o n s id e r a b ly la rg e r v o lu m e than a y e a r a g o , w ith in cre a se s fr o m last y e a r re p o rte d fo r m o s t se ctio n s o f th e co u n try . D e p a rtm e n t o f A g r ic u ltu r e estim a tes as o f A u - A u g u s t 1935 m o d ity p rice s s h o w e d little c h a n g e d u rin g J u ly and a d v a n ce d s lig h tly in the first th ree w e e k s o f A u g u s t. F o r th e s e v e n -w e e k p e r io d as a w h o le th ere w e r e su b sta n tia l in cre a se s in th e p rice s o f h o g s, lard, silk, and scra p steel, w h ile c o tt o n d eclin ed . W h e a t, a fter a d v a n c in g c o n s id e ra b ly d u rin g th e la tte r p a rt o f J u ly , d e clin e d so m e w h a t in th e e a rly p a rt o f A u g u s t. B a n k C red it. E x c e s s re se rv e s o f m e m b e r ban k s in crea sed b y $340,000,000 in th e fiv e -w e e k p e rio d e n d ed A u g u s t 21 as a co n s e q u e n c e p r in c i p a lly o f a r e d u ctio n in th e b a la n ce s h eld b y th e T r e a s u r y w ith F e d e ra l R e s e r v e ban k s. T h e r e w e r e a lso m o d e ra te im p o rts o f g o ld fr o m a b roa d . T o t a l loa n s an d in v e s tm e n ts o f r e p o r tin g m e m b e r ba n k s in le a d in g cities s h o w e d a net PERCENT 1929 1930 1931 J932 1933- 1934 1935 INDUSTRIAL PRODUCTION FACTORY EMPLOYMENT Index of industrial production, adjusted for seasonal varia tion (1923-1925 average=100). Index of factory employment, adjusted for seasonal vari ation (1923-1925 average=100). g u s t 1 in d ica te a c o tt o n c r o p o f 11,800,000 bales, a b o u t 2,200,000 b a les la rg e r than th e u n u su a lly sm all c r o p last y e a r. T h e in d ica te d w h e a t cro p , w h ile la rg e r th an a y e a r a g o , is c o n s id e r a b ly sm aller th a n th e fiv e -y e a r a v e ra g e f o r 1928- d e clin e o f $290,000,000 d u r in g th e fo u r w e e k s en d ed A u g u s t 14. H o ld in g s o f d ir e c t o b lig a tio n s o f th e U n ite d S ta tes G o v e r n m e n t d e crea sed b y $220,000,000 fo llo w in g a su b stan tial in cre a se in th e m id d le o f J u ly . L o a n s d e clin e d MILLIONS OF DOLLARS 1932 VALUE OF CONSTRUCTION CONTRACTS AWARDED Three-month moving averages of F. W. Dodge data for 37 Eastern states, adjusted for seasonal variation. Latest figures based on data for June and July and estimate for August. 1932. C ro p s o f c o rn an d o th e r fe e d stufifs are su b sta n tia lly la r g e r th an la st season . D is trib u tio n . D a ily a v e ra g e v o lu m e of fr e ig h t-c a r lo a d in g s d e clin e d in J u ly , re fle ctin g a m a rk ed d e cre a se in sh ip m e n ts o f coa l. D e p a rtm e n t s to re sales s h o w e d a sea son a l d e clin e and th e B o a r d ’ s a d ju ste d in d e x rem a in ed u n ch a n g e d at 80 p e r c e n t o f th e 1923-1925 av era g e. P rice s . T h e g e n e ra l le v e l o f w h o le sa le c o m 1933 1934 1935 MEMBER BANK CREDIT Wednesday figures for reporting member banks in 91 leading cities. Latest figures are for August 14. b y $180,000,000 in th e la tte r p a rt o f J u ly b u t s u b se q u e n tly a d v a n ce d b y $40,000,000, w h ile h o ld in g s o f G o v e r n m e n t g u a ra n te e d an d oth e r se cu ritie s in cre a se d b y $70,000,000 in th e fo u r w e e k p eriod . Y ie ld s on G o v e r n m e n t se cu ritie s ro se s lig h tly d u r in g th is p e rio d , w h ile o th e r sh o rt-te rm o p e n -m a rk e t m o n e y rates rem a in ed at lo w lev els.
@FedFRASER