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e m r N OT TO BE RELEASED FOR PUBLICATION BEFORE TH E M O RN ING OF D E C E M B E R 2 8 , 1 9 2 1 A g r ic u l t u r a l a n d B u s in e s s C o n d it io n s IN T H E T W E L F T H F E D E R A L R E S E R V E D IS T R IC T M o n th ly R e p o rt to the F ed eral R eserv e B oa rd by JOHN PERRIN, Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. V. San Francisco, California, December 16, 1921 E M B E R banks of this district reduced their borrowings from the Federal R e serve Bank at an accelerated pace during the month ending December 14th, the decline in that period amounting to $24,000,000, or 27.2 per cent, and leaving the total of such borrow ings on that date, $64,000,000, the smallest re ported at any time during the last T h e M onth tw o years. Banks in the larger cities of the district continued to reduce their borrowings at approximately the same rate which has prevailed since Septem ber last, and liquidation of their borrowings by banks in the country districts became sub stantial during November for the first time this year. In the reports of the 64 principal report ing member banks there is apparent a tendency toward increase in deposits, accompanied by a slight increase (4.2 per cent during the month ending December 7th) in loans not secured by United States Government obligations. These reporting member banks during the same period cut their borrowings from the Federal Reserve Bank in half. In the acceptance market more bills are originating in this district and are be ing offered in the open discount market. D e mand for bills was gradually broadening during November but has diminished during the first two weeks of December, a tendency reported to be due to conservation of cash by banks for the year-end settlements. During November, the month between early fall buying and holiday purchases, it is custom ary for retail and wholesale sales generally to show seasonal declines. In the wholesale trade, however, it is significant to note that sales of automobile tires, dry goods, and fur niture, during November exceeded in dollar value the sales in those lines during N ovem ber, 1920. Excepting agricultural implements and stationery, the decline in net sales in the M No. 12 other seven reporting lines, when compared with the declines in the selling prices of their pro ducts during the year, indicates that the physical volume of merchandise now moving at wholesale is as large or larger than it was last year at this time. A similar situation obtains in the retail trade where sales of the 34 reporting department stores were only 7.9 per cent less in November, 1921, than they were in November, 1920, with price declines for the same period reported to be from 15 to 25 per cent. The last of the 1921 agricultural products of this district are now coming to market. The California rice crop has been harvested under exceptionally favorable climatic conditions and the quality is reported good. A favorable fac tor in its market prospect is the appreciable rice shortage reported in Japan where the em bargo against rice imports has been lifted and where prices are reported to be rising. Latest estimates of the apple crop of the district place it at 45,000,000 bushels, approximately 50 per cent in excess of last year’s short crop. W ith the shortage of fresh fruits in the East and Middle W est, as a result of frosts last spring, the demand for apples so far this season has on the whole been good and growers are expected to experience a profitable year. The livestock of this district is in excellent condition. H ay is abundant and cheap and winter range pros pects are good. There is reported from all districts a stronger demand for feeder cattle and, except in the Inter-Mountain district, there are indications that herds and flocks are being restocked. Flour mills of the district are operating at approximately 58.9 per cent of capacity as compared with 34.7 per cent of capacity a year ago. Many mills in California are doing even better than this on account of a brisk export demand from M exico and Latin America. Those desiring this report sent them regularly will receive it without charge upon application. 2 A g r ic u ltu r a l a n d B u s in e s s In the lumber industry diminution of O cto ber’s sudden activity is noted, but a decline with the approach of the new year is custom ary. Production is now 9 per cent less and orders and shipments are 55 and 20 per cent greater, respectively, than they were in N ovem ber, 1920. The export demand, principally from Japan, continues brisk and there is reported an increasing tendency to use ocean transpor tation in the lumber trade between the Pacific and Atlantic coasts. The supply of logs in the water is abnormally small and it is expected that logging operations will be more than usually extensive during the winter. Petroleum production in California, since the conclusion of the oil strike, has shown a marked increase and during the month of November was slightly more than the increased consumption reported for that month. Storage stocks were conse quently increased again after the declines of October and November. Building activity, particularly in the interior states of the district, decreased during N ovem ber with the approach of winter and figures for that month were slightly below the record months of September and October of this year. They are still, however, 49.3 per cent greater in value and 46.3 per cent greater in number of permits than in November, 1920. Unemployment throughout the district, prin cipally among unskilled workers, increased dur ing November. The greatest declines in em ploym ent were reported from the seasonal in dustries, agriculture and road building, and from the shipyards which are now operating at approximately 5 per cent of their war capacity. There continues to be a strong demand for skilled labor in the building industry. Bank clearings during November were 9.6 per cent less than in November, 1920. This is the smallest percentage of decline from last year’s figures which has been shown in any month this year and indicates a substantial in crease in physical volume of business being done now as compared with a year ago. Business failures during November were the largest reported during the year, an increase which is in part seasonal. (A) Milling— Light domestic and export demand in the face of accumulating stocks of flour is reported to have caused some decrease in the output of flour mills of this district during N oMilling vember compared with the previous month. Total production of 71 report ing mills was 58.9 per cent of capacity as com pared with 61.9 per cent in the preceding month and 34.7 per cent a year ago. Millers in the Northwestern states report that both export and domestic demand for flour has been light as compared with the previous three months. California millers state that they have recently experienced a strong export demand from M exico and Central America, and mills in that state reduced their operations only slightly during the month. The industry is proceeding slow ly and cau tiously in all states and stocks are not being allowed to accumulate. Stocks of flour held by millers on December 1st, as reported by 15 large operators were 381,582 barrels compared with 425,783 barrels held on the same date last year. Stocks of wheat held by the same millers on December 1, 1921, were 1,532,603 bushels compared with 2,069,482 bushels held on D e cember 1, 1920. Table “ A ” shows the N ovem ber production of the 71 reporting mills by states, and the percentages of mill capacity in operation this year and last. Harvesting of the district’s apple crop is practically completed, and November produc tion estimates show an increase of 3,752,000 bushels over early season crop foreApples casts. United States Department of Agriculture estimates of apple pro duction by states for this year and last year follow : 1921 (bushels) California ............................ Idaho ..................................... Oregon .................................. W ashington ........................ Remaining States............. Tw elfth November (barrels) October (barrels) 6,003,00( 3,631,00( 3,300,00( 17,000,000 1,018,00C 30,952,00C Per Cent M ill Capacity in Operation October Novembei November 1920 1921 1921 10 5 27 ....29 9 4 26 24 2 7 5 ,5 7 8 5 ,9 9 1 1 7 1 ,5 5 3 4 0 2 ,9 5 7 302,790 15,543 224,340 454,652 68.6 ........ 71 63 8 5 6 ,0 7 9 997,325 58.9 6,525,000 3,913,000 5,400,000 28,325,000 981,000 Boxed apples from the Pacific Northwest continued their rapid movement to market California . . . Idaho ........... O regon ........ W ashington District 1920 (bushels) D istrict.............. 45,144,000 ------------- A N o . M ills Reporting November October C o n d itio n s 23.1 50.9 58.1 68.0 42.8 32.2 32.9 30.7 61.9 34.7 71.0 50.8 65.5 3 Federal Reserve Bank of San Francisco during November, and district shipments up to December 3rd totaled 37,425 cars compared with 22,399 cars shipped up to that date last year. A comparison of carlot shipments this year and last year from the chief apple producing states of this district is given in the follow ing table : Carlot Shipments to December 3rd 1920 1921 California ............ 4,205 Idaho ................... 5,001 Oregon ................ 4,278 Washington ....... 23,240 3,797 2,184 2,169 13,655 Total Season 1920 4,503 2,784 3,169 21,652 The principal movement of early varieties, and Jonathans, the chief mid-season variety, has been completed, leaving only Winesaps, Newtowns, and a few hard, late-keeping vari eties to be marketed. Absence of speculative or storage demand, reduced consumer buying power, and unusually heavy shipments from the Pacific Northwest are reported to have been the distinctive fac tors in the apple market this season. During November boxed apples from Oregon, W ash ington and Idaho were shipped into markets heavily supplied with eastern barrelled apples, a considerable amount of the fruit arriving in an overripe condition and being forced into immediate consumption. Prices were depres sed to a point where growers are reported to have received from 25 to 50 cents per box less than during November of 1920 when prices averaged from $1.75 to $2.95 per box for the leading varieties. (Jonathans averaged $2.20 per box in November, 1920). Upon the entire 1921 season’s operations growers are reported by commercial factors to have received a profitable return, as costs of production have been considerably lower than last year. The 1921 crop apples have proved to be good storage fruits. Jonathans have not shown the signs of decay which caused trouble and considerable loss last year. Apples now in storage will be largely marketed in the next three months. The peak of the shipping season has passed, the small eastern crop has been marketed, and storage holdings are re ported to be normal for this time of the year. The 1921-22 crop of Navel oranges in Cali fornia is reported to be maturing later than usual, and to be sizing up slowly. Picking of this season’s crop began about the middle of November in central California and early in December in southern California. Commercial factors estimate that the 1921-1922 Navel orange crop will total 25,000 cars compared with an estimated crop of 26,600 cars shipped last season. Up to date (December Citrus 14th) it is reported that shipments Fruits have been light, and composed largely of small sized fruit, due to lack of early fall rains in the producing sections. Carlot shipments of California citrus fruits from November 1st (the beginning of the new crop year) to December 3rd for the years 1921 and 1920 are given below. Nov. 1st to Dec. 3rd 1921 1920 (cars) Oranges ............................................ 2,309 Lemons ............................................. 425 (cars) 2,693 434 Total Citrus Fruits......................... 2,734 3,127 Estimates of a record citrus fruit crop for the 1921-22 season have not been changed materially, although oranges and lemons in southern California are reported to have been damaged by recent frosts and high winds. The California Fruit Growers Exchange now esti mates that the com ing crop will total 52,300 cars of oranges (Navels and Valencias) and 14,750 cars of lemons, a total of 67,050 cars of citrus fruits. Last season 45,236 cars of oranges and 11,659 cars of lemons, a total of 56,895 cars of citrus fruits, were shipped from Cali fornia. The average price received by growers (who are members of the California Fruit Growers Exchange) for Navel oranges during the first month of this season was $3.84 per box f.o.b. California. In November, 1920, the average return to the grower was $4.32 per box. The average return to growers for lemons during November of this season was $2.30 per box, as compared with an average return of $1.35 per box at the same time a year ago. (An erroneous statement appeared at the end of the paragraph on citrus fruits in the November report of this bank. The prices reported to have been received by Exchange growers during the 1920-1921 and 1919-1920 seasons,— $2.36 per box for oranges and $2.55 per box for lemons in 1920-1921, and $6.20 per box for oranges and $0.95 per box for lemons in 1919-1920— were not average prices for the season, as stated, but were prices as of N o vember 1, 1921, and the comparison was with prices received November 1, 1920.) Picking and ginning of the cotton crop in Arizona and California is proceeding normally and conditions have been generally favorable. The Census Bureau report on cotton ginned, 4 Agricultural and Business Condition issued on Decem ber 8th, gives the follow ing figures for Arizona and California up to D e cember 1st: yield than the government’s October figures There were 4,374,000 bags (9,720,000 bushels' raised on 164,700 acres in 1920, approximately 1921 1920 20 per cent of which was damaged or destroyec Estimated Cotton Estimated Cotton by rains during the harvesting period. Thii Crop Ginned Crop Ginned U .S.D .A. to Dec.1 U .S.D .A. to Dec.1 (bales) (bales) (bales) (bales) season’s rice is reported to be of good quality Arizona .............. 45,000 25,715 103,000 56,967 although millers state that a large portion of i 61,000* 32,079 is hard to clean because poor drying weathe California ........... 34,000* 16,030 *34,000 bales grown in Lower California (Mexico) in 1921 and and anxiety of the growers to move thei 89.000 bales in 1920, not included in California figures. crops before the fall rains, resulted in im Figures of cotton ginned included 22,058 proper drying. bales of American Egyptian cotton in 1921 Carryover stocks of 1920 crop rice in Cali compared with 46,160 bales in 1920. In A ri fornia on December 1st were reported to b< zona cotton is again accumulating in approximately 100,000 bags of 100 pound: Cotton the gin yards and warehouses. Dur (pockets) of cleaned rice and 30,000 bags ( 1CK ing the latter part of October there pounds each) of rough rice. An estimate o was a flurry of demand for long staple cotton the carryover of 1920 crop rice in the Unite< and the price of number one Pima reached a States in September, 1921, follow s: high point for the year at 43 cents per pound. Paddy Rice Cleaned Ric (100 poundbags (100 poundbags) D uring this period of active demand Arizona 464,09 growers and distributors reduced their holdings Southern States................ 693,552 296,00 California ......................... 1,100,016 of 1920 crop cotton (then amounting to about 50.000 bales) to 42,000 bales. Demand since Total United S ta tes... 1,793,568 760,09 then has been light and only 2,000 bales out of Based on a cleaned rice content of 50 pound; an estimated 1921 crop of 35,000 bales of long in each 100 pounds of paddy rice, the tota staple cotton were reported shipped out of A ri carryover of 1920 crop rice in the Unite< zona up to Decem ber 1st. Prices at New E ng States in September was approximately 1,656, land points in early December indicate a re 882 bags (100 pounds each) of cleaned rice o turn to growers of approximately 35 cents per which 846,000 bags was in California. pound for Pima cotton of number one grade. The local market for California paddy (rougl In the Imperial V alley of California, short uncleaned) rice has fluctuated between $3.CM staple cotton is reported to be selling well on and $2.25 per 100 pounds, during the pas a fairly steady market. Prices to the grower, two months and on December 15th quotation which are the same or slightly higher than were around $2.50 per 100 pounds. The marke last year (approximately 20 cents per pound) is reported to be dull. One of the importan are estimated to return a greater profit than factors in the market situation for Californi; in 1920, allowance being made for lowered rice is the rice shortage in Japan. Lates cost of production and ginning. On Decem official reports from that country state tha ber 1st there were approximately 18,000 bales reserve stocks of rice are 12,000,000 bags (600, of new crop and a nominal carryover of 400 000 tons) less than consumption requirements bales of 1920 crop in storage at Calexico (the and that imports of 9,000,000 bags (450, Imperial V alley storage center for both Cali 000 tons) are necessary. Prices of rice in Japa: fornia and Mexican grown cotton). are reported to be rising, and the Japanes Harvesting of rice in California was facili government has removed the import duty unti tated by favorable weather during November November, 1922. and the close of the month found practically The Rice Growers Association of California all of the crop under cover. Damage which is reported to control about 50 per cen *R ice from rain was negligible. A ccording to of the California rice crop, is not selling it the latest available estimates of the Uni holdings at present prices. The rice markete< ted States Department of Agriculture (O cto through the Association will ultimately be sol< ber 1st) California rice growers raised ap at public auction, but it is stated that sales proximately 3,433,950 bags of 100 pounds each rooms will not be opened until market price (7,631,000 bushels) of rough rice on 139,300 more nearly approximate what the grower acres of land this season. Private estimates as consider to be a fair price based on present con of December 1st show a considerably smaller ditions in the world rice market. A t the pres *A11 weights reduced to bags of 100 pounds using the follow ing equivalents: 45 pounds of rough rice to the bushel; 2000 pounds to the ton. ent time they consider such a price to be $3.0 per 100 pounds for paddy rice. Federal Reserve Bank of San Francisco 5 Livestock of the district is reported to be in excellent condition, winter range prospects are good and much low-priced hay is avail able for feeding where necessary. Livestock Ranges and pastures in many sec tions of the district suffered from a lack of rain early in November, and feed conditions were slightly below normal. Recent rains have relieved the situation to a great ex tent. The only immediate need for moisture is in small sections of Arizona, Utah and south ern California. Receipts of livestock at six of the principal markets of this district (table “ B ” ) continued heavy during November, hog and cattle re ceipts showing a considerable increase over the corresponding month of last year, and a slight increase over the preceding month of this year. Receipts of sheep were well below figures for November, 1920. Rapid marketing of cattle in the Inter-Mountain section is shown by an increase in receipts of 93.3 per cent over November, 1920, at Salt Lake City and Ogden, Utah, markets. The bulk of the increased receipts at these markets was re ported as going direct to packers, and included a large percentage of cows and heifers. The range of livestock prices at six markets of this district for November (as shown in table “ C” ) reflects the recent depression in eastern markets, when meat prices touched the lowest point in several years, and the slight recovery at the end of the month. A m ong the most significant market developments reported during the month are a stronger demand and increasing prices for feeder cattle; an extreme scarcity of hogs in the Pacific Northwest, with strong local demand being supplied from the Middlewestern states; and a strengthened market for sheep, both for mutton and for stocker and feeder purposes. Receipts of Livestock at Six of the Principal Markets of the District 1920-1921. (Ogden, Portland, Salt Lake City, Seattle, Spokane and Tacoma included) Indications of a definite movement toward restocking depleted herds and flocks are fur nished by reports of a heavy late fall demand for feeder cattle throughout most of this dis trict, accompanied by a demand for stocker cattle and sheep, varying in degree with the financial condition of stockmen in various sec tions. The strongest demand for feeder cattle is reported from California, and active trading has raised prices for this class of animals in Arizona, Nevada and Oregon. Prices of stock sheep are reported to have advanced from (B) Receipts o f Livestock— Cattle Nov., Nov., 1921 Ogden ............... 15,961 7,785 Portland ........... Salt Lake City..,. 7,832 Seattle ............... 2,988 Spokane ........... . 5,683 Tacoma ............. 1,995 1920 7,515 11,381 5,242 3,651 6,283 1,588 42,244 35,660 Total ............ Calves Nov., Nov., Hogs Nov., Nov., Nov., Sheep Nov., 462 510 236 1921 16,181 10,087 5,668 6,404 2,833 8,043 1920 6,273 11,132 1,611 6,973 4,737 3,049 1921 48,284 14,809 36,294 4,624 3,809 8,203 1920 21,231 21,488 78,468 16,485 8,853 13,152 2,641 49,216 33,775 116,023 159,677 1921 195 773 1920 104 1,329 *35 841 417 2,261 Horses and Mules Nov., Nov.. 1921 1920 56 86 24 45 iô 164 9 195 211 378 (C) Range in Livestock PricesWeek of Highest and Lowest Average Top Prices Per Hundredweight Received at Above Markets During November. Fat Steers Cows Calves Hogs November 7 ........... November 14........... November 21........... November 28........... $5.00— 6.25 5.00— 6.25 4.75— 6.25 5.00— 6.00 $4.25— 5.00 4.00— 5.00 3.50— 5.00 4.50— 5.00 $4.50— 10.00 4.75— 10.00 6.00—10.00 6.00—10.00 $7.60— 10.00 7.25— 9.00 6.60— 9.00 6.35— 8.50 Lambs $5.75— 6.50 6.50— 7.00 6.00— 7.25 6.00—7.50 6 Agricultural and Business Conditions Federal Reserve Bank of San Francisco $1 to $2 per head in Utah during N ovem ber and the advancing price of wool has further improved the position of the sheepmen. A striking exception to this movement is fur nished in the Inter-Mountain section, where cattlemen, reported to be financially unable to invest in stocker cattle, are selling heavily from breeding herds. Net withdrawals of cold storage butter at the four principal markets of the district were 74,123 pounds during November, compared with 884,682 pounds during the preDairy ceding month and 504,504 pounds Products in November, 1920. Holdings at the same markets, as reported on D e cember 1, 1921, were 865,909 pounds, com pared with 2,117,696 pounds held in storage one year ago, a decrease of 1,251,787 pounds, or 59.1 per cent. Contrary to the general trend in the district, storage holdings of butter in Los Angeles increased 52,392 pounds during November. H eavy arrivals of Australian butter in the latter part of the month depressed prices in the San Francisco market, 93 score fresh creamery butter falling from 48 cents to 42*4 cents per pound during the four days between N ovem ber 26th and December 1st. Considerable quan tities of Australian butter are reported to be going into storage, and the remainder is being sold on the local markets or sent east as pre vailing prices at the various markets dictate. A statement of the movement and holdings of cold storage butter is shown in table “ D .” The average price paid to milk producers during November, 1921, by fluid milk distribu tors (presented in table “ E ” ) remained the same in the Mountain section, and increased five cents in the Pacific section compared with October, 1921, and showed a decline of $0.96 and $1.26 respectively, compared with N ovem ber, 1920. Heavy production in the face of declining export demand for relief purposes, and an un stable domestic demand, continues to be the significant feature of the canned milk market. A favorable factor is that stocks of canned and evaporated milk held by manufacturers on November 1, 1920, were about 50 per cent lighter than on the same date a year ago. General conditions in the lumber industry are reported to be more satisfactory than at any time in the past 16 months. A lLum ber though production declined slightly in November compared with N o vember, 1920, orders received during the month were 55.5 per cent greater than those 7 of November, 1920, and unfilled orders on hand are larger than they were a year ago. The success and increasing importance of water-borne shipments to the Atlantic Coast, and a sustained export demand have been the outstanding features of the lumber market. During the past three months 38 per cent of the total lumber shipments from the Pacific Northwest have been shipped by water. November production of lumber (369,536,000 feet) as reported by four lumber associ ations was 47,661,000 feet or 11.4 per cent less than the October cut and approximately 75 per cent of normal compared with 85 per cent a month ago. In November, 1920, production was reported as 408,959,000 feet, or 9.6 per cent greater than the reported cut in N ovem ber of this year. The decrease in November, 1921, was partly seasonal and partly due to the severe storms which swept the Columbia River Valley in Oregon during the last week of November, and caused the closing of some mills and curtailment of production in others. Orders received during the month also de clined, totaling 351,280,000 feet, or 20.3 per cent less than the high mark (441,432,000 feet) in October. Compared with November, 1920, the November, 1921, orders represent an in crease of 125,456,000 feet, or 55.5 per cent. Un filled orders at the close of November, re ported by four associations, totaled 1,165,122,000 feet compared with 1,179,712,000 feet at the close of October and 1,078,073,000 feet on (D) Movement o f Stocks o f Cold Storage Butter— City Nov., 1920 Dec. 1, Nov., 1921 1921 Net Net Withdrawals Withdrawals Holdings (pounds) (pounds) (pounds) Dec. 1, 1920 Holdings (pounds) 552,119 329,714 671,706 564,157 Los A ngeles.. . P o r tla n d ........ . San Francisco . Seattle .......... 52,392* 50,480 9,939 66,096 210,913 95,642 37,614 160,335 332,687 46,517 414,159 72,546 Totals ........ 74,123 504,504 865,909 2,117,696 *Net addition. (E) Prices Received by Milk Producers*— Section! Nov., 1921 Range Mountain (7 M k ts.). ,$1.73-$2.94 Pacific (9 M k ts.)........ 2.20- 3.03 U. S. (106 M k ts.). . . . 1.35- 6.78 Nov., 1921 Average Oct., 1921 Average Nov., 1920 Average $2.12 $2.12 2.62 2.57 2.54 2.52 $3.08 3.88 3.72 *A11 prices per hundredweight for milk testing 3.5 per cent butter fat. tMountain Section includes Idaho, Utah, Nevada and Arizona. Pacific Section includes Washington, Oregon and California. Agricultural and Business Conditions 8 N ovem ber 30, 1920. Shipments decreased from 416,651,000 feet in October to 352,731,000 feet in N ovem ber but were 59,685,000 feet, or 20.3 per cent, greater than the shipments in N ovem ber, 1920. Accurate and complete figures of stocks at the mills are not available, but reports received indicate that mill stocks on November 30th were less than those of O ctober 31, 1921, and Novem ber 30, 1920, except at the pine mills of Oregon where an increase during Novem ber of this year compared with N o vember, 1920, was reported. W holesale and retail yards generally are reported to have reduced their stocks to a relatively low point and to be carrying only sufficient lumber to meet current needs of the trade. Lumber Production, Orders Received, and Shipments in Twelfth Federal Reserve District as Reported by Four Lumber Associations, 1920*1921. There was little change in the lumber mar ket during November. Prices in the upper grades were steady while increases occurred in a few of the lower grades. Railroad buying of small lots of timbers, ties, stringers and car material continued during the month. D e mand for shingles improved in spite of in creased prices and shingle stocks have been reduced. A number of shingle mills are closed down at present. The demand for lumber in the export field was also sustained, and heavy shipments were made to Japan, South America and Australia. Exporters are well supplied with orders and are hesitant about taking advance orders as cargo mills have sufficient old contracts to keep them busy until January, 1922. L oggin g production in the Pacific North (F) Lumber— West Coast Lumbermen's Association Average No. ' Nov. 26 of Mills reporting . . . . 422 261,176 Cut* ..................... 222,856 Shipments* ........ 230,114 Orders*t ............ Unfilled Orders*§ 1,021,277 Western Pine Manufacturers* Oct. 29 Nov. 26 Oct. 29 411 267,751 266,018 300,674 982,342 38 37,565 59,254 66,075 55,775 41 59,438 77,790 89,225 54,200 west during November was less than in O cto ber, 1921, and November, 1920, largely due to severe storms which forced many camps to suspend operations. The supply of logs in the water is the smallest ever reported at this season of the year. L oggin g camps which operate below the usual snow line are planning to run through the winter in order to keep the saw mills supplied with logs. In the Cali fornia redwood region logging operations were reported equal in volume with October and greater than in November, 1920. Transcontinental railroads have announced the follow ing reductions in lumber freight rates to take effect December 24th: From Pacific Coast points to Cincinnati, Detroit and common points, from 94 cents to 85 cen ts; to Pittsburg, Buffalo and com m on points, from 95 cents to 88^2 cen ts; and to the territory east of Buffalo and Pittsburg, including New England, from $1.02 to 90 cents. Comparative figures of cut, orders, unfilled orders and shipments of the four lumber asso ciations in this district during November, 1921, and October, 1921, are shown in table “ F.” Mineral production at those mines in the district which are operating increased dur ing O ctober compared with September, 1921, and with October, 1920, according to M ining reports covering the operations of 12 large gold, silver, copper and lead mining companies. Many mining prop erties, however, are still closed down, particu larly in the copper mining sections of Arizona and Utah. General reports indicate activity in silver mining, and to a slightly lesser degree in lead mining, some improvement in gold mining, and continued depression in copper mining activity. Production of tw o large copper mines now operating in this district (13 of the largest mines are inoperative) was 6,234,813 pounds of blister copper during O ctober compared with 5,353,541 pounds during September and 5,358,555 pounds produced by the same mines in October, 1920. The outstanding feature CaliforniaWhite and Sugar Pine Manufacturers* Association California Redwood Association TOTAL 1921-Four Weeks EndingNov. 26 Oct. 29 Nov. 26 Oct. 29 Nov. 26 12 38,749 37,282 40,853 41,800 12 31,660 25,035 32,552 37,801 492 369,536 352,731 351,280 1,165,122 20 32,046 33,339 14,238 46,270 27 58,348 47,808 18,981 105,369 Oct. 29 491 417,197 416,651 441,432 1,179,712 *In thousands of feet. _ . # tOrders of the California White and Sugar Pine Manufacturers’ Association based on reports of five mills. §Unfilled orders of the Western Pine Manufacturers’ Association based on reports of 44 mills for five weeks ending December 3, 1921, and October 31, 1921. Federal Reserve Bank of San Francisco 9 output of metal of 12 reporting mines in O cto ber, 1921, September, 1921, and October, 1920, are shown in the follow ing table : of the copper situation in recent months has been the steady rise in the price of the metal. Electrolytic copper for immediate delivery sold on the New Y ork market during the first week of December for 13.50 to 13.75 cents per pound. The average price during November was 13.06 cents per pound, compared with an average price of 12.923 cents in October, 11.984 cents in August and 14.507 cents in November, 1920. Increased sales for both domestic and foreign account and steadily declining surplus stocks are reported to be responsible for the advanc ing market. The increased output of gold which has been reported in each month of 1921 (with the ex ception of March) compared with the corres ponding month of 1920, is partly due to re newed activity induced by declining com m od ity prices and costs of production, and partly due to increased recoveries of gold in the dredging fields. Deep gold mining continues relatively inactive. It is reported by the United States Geological Survey that the cost of pro ducing gold in the deep gold mines of California rose from $9.51 an ounce in 1913 to $19.15 an ounce in 1920. It is estimated that present costs are approximately 12 per cent below the high point reached last year. Reporting gold, silver and lead mines are operating at 100 per cent of capacity and re porting copper mines at approximately 66 per cent of capacity. Comparative figures of the *Copper ( l b s .)... Lead (lb s .)........ Silver (o z .) ........ Gold (o z .)......... Oct., 1921 Sept., 1921 Oct., 1920 6,234,813 9,950,041 457,013 30,905 5,353,541 9,853,851 412,848 26,905 5,358,555 9,471,192 394,080 28,189 ^Blister. Settlement of the oil workers’ strike in the San Joaquin Valley oilfields caused produc tion to rise during November after two suc cessive monthly decreases in SepPetroleum tember and October. Average daily production during N ovem ber was 293,323 barrels, a daily increase of 65,366 barrels over the petroleum raised dur ing October. Consumption also increased in November but not to the same extent as pro duction, and daily production exceeded daily shipments by 12,330 barrels. Stored stocks stood at 33,486,350 barrels on November 30, 1921, compared with 33,116,456 barrels held on O ctober 31, 1921, and 22,582,304 barrels on November 30, 1920. Thirty-eight new wells with an initial daily production of 9,755 barrels were completed during November and one well was abandoned, a net increase of 37 producing wells. Statistics on oilfield operations, as furnished by the Standard Oil Company of California are shown in table “ G.” (G) Petroleum — November, 1921 Production (daily average)................. Shipments (daily average)................... Stored Stocks (end of m on th ).............. New W ells Opened................................. With Daily Production..................... Wells A bandoned.................................... October, 1921 293,323 bbls. 280,993 bbls. 33,486,350 bbls. 38 9,755 bbls. 1 227,957 245,861 33,116,456 32 14,825 1 bbls. bbls. bbls. bbls. November, 1920 312,082 310,839 22,582,304 47 29,520 9 bbls. bbls. bbls. bbls. (H) Electric Power — (a) (b) (c) Plant Capacity K. V . A . Oct., Sept., Oct., Type of Plant 1921 1921 1920 HydroPower ..................... 681,020 681,020 523,225 Steam ............... .................. 350,045 350,045 324,925 Purchased ............................................................................... Total ..................................... 1,031,065 1,031,065 848,150 Peakload K. W . Oct., Sept., Oct., 1921 1921 1920 424,688 423,240 348,269 188,907 184,614 206,400 50,907 53,450 49,988 Plant Output K. W . H. Oct., Sept., Oct., 1921 1921 1920 241,803,926 248,446,497 182,275,593 64,740,196 70,157,706 99,139,735 33,794,825* 34,811,807* 22,493,879* 709,155 306,544,122 661,304 648,357 318,604,203 281,415,328 Number of Industrial Consumers and Sales: Number of Industrial Consumers! Oct., Sept., Oct., 1921 1921 1920 42,441 41,590 38,443 *Not included in total plant output. $Eight companies reporting. § Seven companies reporting. Connected Industrial Load H . P.£ Oct., Sept., Oct., 1921 1921 1920 1,333,247 1,342,113 1,240,544 Industrial Sales K. W . H . Oct., Sept., Oct., 1921 1921 1920 195,949,991 223,533,058 193,915,663 10 Agricultural and Business Conditions Reports from nine of the principal electric power producing companies of California show that sales of electric energy for industrial pur poses during the month of October Electric were 12.3 per cent less than during Pow er the previous month and 1.0 per cent greater than in October a year ago. Geographically, sales in northern California showed a slight increase compared with last year, and sales in southern California were practically the same as in October, 1920, but both northern and southern California sales were less in October, 1921, than in September, 1921. In the specific industries for which figures are available, decreased consumption was reported in O ctober compared with Sep tember in agriculture and oil production, and practically no change in mining. Sales of electric energy to agricultural con sumers of power show a seasonal decrease of 40 per cent in the month of O ctober compared with September, 1921. Compared with O cto ber, 1920, sales to agricultural consumers in creased 19 per cent, a gain attributed to the lack of early fall rains this season and the con sequent necessity of pumping for irrigation water. The decrease in sales to oil producing companies (37 per cent decline compared with the previous month) is reported to be w holly due to the recent strike in the oilfields of the San Joaquin Valley. Statistics on the electric power industry in the state of California, as reported by nine of the principal power companies, are shown in table “ H ” (see preceding page). The dollar value of Novem ber sales of 34 representative department stores and mail order houses as reported to this bank, were 7.9 per cent less than sales during November, 1920, and 5.8 per cent less than those of O cto ber, 1921. Retail prices were reported to have declined on an average of 15 per cent during the year, indicating that the physical volume of merchandise sold during November, 1921, was greater than in November, 1920. The de cline in the value of sales in N ovem Retail ber, 1921, compared with October, Trade 1921, was seasonal as this month falls between the periods of early fall and the holiday buying. (See chart of sales of 22 stores.) The amount of the average sale (cash, charge, C. O. D .) reported by 11 department stores was $2.68 in N ovember compared with $2.83 in October and $2.90 in November, 1920. Net Sale* of 22 Department Stores in Twelfth Federal Reserve District (In Millions of Dollars) (I) Retail Trade Activity — CONDITION OF RETAIL TRADE D URIN G NOVEMBER, 1921 In Federal Reserve District No. 12 Percentage increase or decrease (— ) of net sales during N o vember, 1921, over net sales during same month last y e a r ... Percentage increase or decrease (— ) of net sales during N o vember, 1921, over net sales during October, 1 9 2 1 ................. Percentage increase or decrease (— ) of net sales from July 1, 1921, to November 30, 1921, in clusive, over net sales during same period last year................. (34 Stores Reporting) Los Angeles Oakland Sacramento .5 — 9.3 — 16.8 — 14.2 — 4.0 -11.7 -10.4 — 7.9 — 1.3 — 7.1 — 18.8 — .5 — 6.8 — 11.8 -21.0 — 5.8 — 9.5 — 13.4 — 17.0 — 3.5 — 13.1 -14.6 — 8.3 Salt Lake City San Francisco Seattle Spokane District 11 Federal Reserve Bank of San Francisco The number of individual sales transactions of eight stores was reported to be 3.6 per cent less during November than in October, 1921, and 3.8 per cent less than in November, 1920. Follow ing is a statement of the average sale (cash, charge, C. O. D .) in Los Angeles, Salt Lake City, San Francisco and Seattle: Nov., 1921 Los A ngeles...........$ Salt Lake C ity .. . . San Francisco....... Seattle ................... Oct., 1921 3.36 2.15 2.98 1.97 Nov., 1920 $ 3.71 2.13 3.31 2.25 District ..................$ 2.68 $ 2.83 $ 2.90 Stocks now held by department stores are approximately normal, a decline of 13.4 per cent in value since last November being ac counted for by equal or greater declines in prices. The value (selling price) of stocks of reporting firms at the close of November, 1921, was 1.4 per cent greater than at the close of October, 1921, a normal increase at this season of the year when stocks are at their peak. The percentage of average stocks on hand to average monthly net sales on November 30, 1921, was 462.0 per cent compared with 464.9 per cent on October 31, 1921. Collections were characterized by reporting firms as follow s: Number of Firms Excellent Good Fair Poor 1 13 8 0 A statistical review of the condition of re tail trade in the district during November, 1921, appears in table “ I.” (See opposite page.) The dollar value of November sales, as re ported by 190 representative wholesale firms in ten lines of business, shows that sales of automobile tires, dry goods, and W holesale furniture exceeded those of N oTrade vember, 1920. The seasonal de cline during November as com pared with O ctober was apparent in all lines. The average net increases or decreases (— ) in the value of sales of each reporting line were as follow s: E|evenmonthsendin< Agricultural Implements . . Auto Supplies.. . Auto T ires....... Drugs .............. . Dry G ood s....... Furniture ........ Groceries ........ Hardware ........ Stationery ....... Nov., 1921, Nov. 30,1921 compared with compared with same period in 1920 Oct., 1921 Nov., 1920 — 46.7 — 12.7 41.4 — 10.7 5.2 16.0 — 18.4 — 14.3 — .8 — 31.8 — 51.2 — 19.9 — 14.0 — 14.3 — 28.5 —22.4 — 24.8 — 29.9 — 22.4 — 24.6 — 24.8 — 12.0 —27.3 —25.9 — 16.6 — 8.8 — 10.2 — 8.8 — 18.4 —23.1 Disregarding agricultural implements and stationery the decline in the value of sales is generally less than the estimated decline in wholesale prices (28.0 per cent) during the past year, indicating that the physical volume of goods sold at wholesale was greater in November, 1921, than 12 months ago. This is shown graphically in the chart on page 12. (J) Wholesale Trade— (la) Percentage increase or decrease (—) in net sales during November, 1921, compared with November, 1920 Agricultural Number of re- Implements porting firms .. 20 Los A n g e le s... .— 37.2 Portland .......... — 57.1 Sacramento . . . Salt Lake City. !— 4Ì.8 San Francisco. ..— 47.8 Seattle ............. Spokane .......... — 50.0 Tacoma .......... District ........... — 46.7 (lb) 22 — 8.4 —20.9 — 16.6 — 31.1 — 19.7 4.1 1.7 — Ì2.7 Auto Tires 15 80.0 92.9 15.8 53.1 1.9 4Ì.4 Drugs 8 #, — Ì4.8 — 42.8 — ÌÒ.7 Dry Goods 12 ‘ *.2 14.6 '5.2 Furniture 16 15.2 34.0 Groceries 45.5 30 — 5.5 — 14.5 —21.1 — 29.0 — 24.1 — *4.6 16.0 — 29.8 — 14.8 — 18.4 Hardware 23 6.0 —29.0 — 1.9 — 25.0 — 18.7 — 12.0 —23.3 — 2.2 — 14.3 Shoes 16 — 13.7 ’ *.8 44.4 — *'.8 Stationery 28 — 7.0 — 34.8 — 3Ì.1 — 49.2 — 17.5 — 26.3 — 4.9 — 31.8 Percentage increase or decrease (—) in net sales for January 1 to November 30,, 1921, compared with the same period last year Agricultural Number of re Implements porting firms. . 20 Los A n g e le s... .— 45.0 Portland .......... —58.7 Sacramento . . . Salt Lake City. !—44.0 San Francisco.. .—62.1 Seattle ............. Spokane .......... — 55.8 Tacoma ........... District ............ — 51.2 Auto Supplies Auto Supplies 22 — 6.8 —26.9 —20.4 —28.2 —23.8 — 34.1 — 19.6 — Ì9.9 Auto Tires Drugs 15 — 8.1 8 —26.9 —29.0 — 12.6 — 22.9 — Ì4.0 —24.7 — 8.6 — Ì4.3 Dry Goods 12 Furniture 16 — 15.6 — 19.2 Groceries —27.7 — 36.8 —29.2 30 — 11.3 — 30.3 —20.7 — 32.2 —25.2 —28.5 — 3Ò.6 —22.4 — 3Ó.5 — 26.8 —24.8 Hardware 23 —22.1 —31.8 —20.2 — 37.0 —29.6 — 36.5 — 28.3 — 14.4 —29.9 Shoes 16 —33.6 — i 6.7 — 30.5 —22.4 Stationery 28 — 17.2 —26.9 — 29.8 — 30.5 — 20.0 — 19.8 —21.1 — 24.6 12 Agricultural and Business Conditions Prices continued on the same levels as last month according to reporting firms. November 1920Prices - »oo9*>- November 1920Sales U.S.BUREAU0FLABORINDEX NO.WHOLESALEPRICES AGRICULTURAL IMPLEMENTS AUTOMOBILE SUPPLIES A U T O M O B IL E T I R E S DRUGS DRY GOODS FURNITURE GROCERIES HARDWARE SHOES STATIONERY Dollar Value of Sales of Representative Wholesale Houses and General Wholesale Prices in November, 1921, Compared with November, 1920 Collections were reported excellent by 12 firms, good by 42, fair by 86 and poor by 22. One hundred and six wholesale firms gave the percentage of their collections during N ovem ber, 1921, to the total amount due from cus tomers (outstanding) on November 1, 1921, and 1920, as fo llo w s : Number of Firms Auto Tires. Drugs ....... Dry G ood s. Furniture . . Groceries . . Hardware . Shoes ........ S. 11 10 11 4 8 8 17 14 9 14 Nov., 1921 27.1 55.0 62.7 84.0 41.2 54.5 64.1 45.5 42.0 62.3 Oct., 1921 24.2 58.2 62.2 65.0 47.0 52.9 68.1 42.7 41.8 57.6 Nov., Berkeley .......... Boise ................ Fresno ............. Long Beach. L os A n g ele s. . . Oakland .......... Ogden .............. Pasadena ......... Phoenix ........... Portland ........... Reno ................ , Sacramento . . . Salt Lake City. San D ieg o ........ San Francisco. . San Jose............ Seattle ................ Spokane ........... Stockton .......... Tacoma ............ Total ........ 208 56 253 390 4,242 646 36 362 50 1,082 . 7 288 157 409 613 89 735 183 93 263 10,162 Numerical increase or decrease (—) in employment during November compared with October 1920 38.0 58.4 61.1 69.1 43.5 51.3 73.6 47.6 45.8 59.7 (K) Building Permits— November, 1921 No. Value No. Los A n geles.. Portland ....... San Francisco. Seattle ........... Percentage increase or decrease (—) in employment during November compared with October — 2,594 65 186 — 103 — 10.5 .82 2.9 — 4.3 The increase in the number of unemployed in California is reported to be due to the usual October, 1921 Value 438,942 57,676 405,988 1,254,500 8,685,775 1,235,174 65,222 701,998 86,903 1,374,615 3,600 496,235 385,876 846,995 2,244,606 238,100 593,800 118,205 165,130 180,652 180 121 242 434 4,489 673 53 371 56 1,441 26 318 119 417 672 76 960 271 129 394 $19,579,992 11,442 $ Statements of increases or decreases (— ) in net sales of reporting wholesale firms during November, 1921, compared with November, 1920, and the first 11 months of 1921, compared with the first 11 months of 1920, are shown in table “ J” ( see preceding page). Unemployment increased in all sections of the district during November due to seasonal declines in agricultural and industrial activity, but there is a divergence of opinion as Labor to whether present unemployment is greater than it was one year ago. In creases in unemployment were reported prin cipally in agriculture, lumbering, fishing, and shipbuilding. The latter industry is now oper ating at approximately 5 per cent of its war capacity. The unprecedented demand for skil led labor in the building trades continues a favorable factor in the labor situation. It is to be noted, however, that skilled laborers as a whole are fairly well employed and that un employment is most noticeable among un skilled workers, due to cessation of seasonal farm, highway, and reclamation work. The monthly report of the United States Employment Service, Department of Labor, shows the follow ing employment changes in manufacturing industries in N ovem ber com pared with October for the cities included: November, 1920 No. Value Per Gent Increase or Decrease (—) in \^&luc Nov. 1921 compared with Nov., 1920 371,326 91,457 345,468 2,127,360 9,781,394 1,245,220 111,565 1,123,131 75,914 1,942,510 42,375 489,226 284,610 1,016,873 2,498,523 116,890 750,115 442,205 225,770 251,809 85 64 242 324 2,640 400 30 227 137 751 11 107 58 278 384 48 750 98 74 238 $ 119,351 181,495 321,925 828,110 6,267,660 563,676 209,950 309,304 172,027 590,480 10,810 278,635 72,717 918,717 1,469,940 56,815 463,470 40,885 77,685 155,039 26.8 — 67.9 26.0 51.4 38.5 118.9 — 69.0 127.1 — 49.4 133.0 — 66.6 77.7 428.7 — 7.8 52.7 317.5 28.2 189.1 111.5 16.7 $23,333,741 6,946 $13,108,691 49.3 $ Federal Reserve Bank of San Francisco 13 winter influx of migratory laborers from other parts of the country and to the cessation of seasonal activities. The California State H igh way Commission reports that 6,000 men will soon be employed on construction projects costing approximately $1,800,000. In Oregon and W ashington the completion of the harvest season and the closing of a num ber of logging camps and sawmills has resulted in increased unemployment, principally among unskilled laborers. The woolen and paper mills of Oregon, which a few months ago were greatly curtailing their production and operat ing only part-time, are now reported to have reached normal production and are operating on a full-time schedule. The situation in A ri zona, Nevada and Utah remains unchanged and there can be little improvement in these states until there is a general resumption of work in the mining and smelting industries. Although there has been some slackening in the building boom, due to the lateness of the season, construction activity continues greatly in excess of last year. DurBuilding ing November there were 10,162 Activity building permits with an estimated valuation of $19,579,992 issued in 20 principal cities, an increase of 3,216, or 46.3 per cent in number, and of $6,471,301, or 49.3 per cent in value compared with November, 1920. November, 1921, figures were slightly below the record months of September and October of this year. O f the 20 reporting cities, 16 show an in crease in the number of permits issued during November, 1921, compared with November, 1920, and 15 show an increase in the value of permits issued comparing the same two months. The majority of the declines re ported occurred in the cities of the interior states. Increases were shown in all reporting cities in the coastal states except San Diego, where a decrease of 7.8 per cent occurred. The accompanying chart shows the number, total valuation and the average value of build ing permits issued in this district by months since January, 1920. Comparative figures of the number and value of building permits issued in 20 reporting cities, during November, 1921, October, 1921, and November, 1920, are shown in table “ K ” (see opposite page). There were 178 commercial failures reported in November with total liabilities of $3,623,247, compared with 136 failures having liabili ties of $1,919,919 in October, an inBusiness crease of 42, or 30.8 per cent in numFailures ber, and of $1,503,328, or 78.3 per cent in the amount of liabilities in volved. In comparison with November a year ago when 118 failures with liabilities of $2,777,457 were reported, there was an increase in number of 60, or 50.8 per cent, and of $845,790, or 30.4 per cent in amount of liabilities. Building Permits Issued in 20 Principal Cities, Twelfth Federal Reserve District, 1920-1921 Note—The great increase in liabilities in June, 1920, was due to the failure of one concern in Seattle, Washington. Business Failures, Twelfth Federal Reserve District, 1920-1921 (L) Business Failures— November, 1921 Liabilities No. Arizona ....................... ................... California ................... ................... Idaho ........................... ................. Nevada ....................... ................... Oregon ....................... ................... Utah ................................................ Washington ............... ................... 6 69 12 1 34 9 47 District ....................... ................. 178 $ 109,700 1,202,954 719,509 600 1,026,859 53,259 510,366 $3,623,247 No. 5 58 4 October, 1921 Liabilities $ November, 1920 No. Liabilities 54,000 755,456 79,057 47 18 $ 668,061 397,681 25 5 39 228,426 38,255 764,725 11 7 35 92,806 76,846 1,542,063 136 $1,919,919 118 $2,777,457 Agricultural and Business Conditions 14 The average failure in the district had liabili ties of $20,355 compared with $14,117 in O cto ber, 1921, and $23,537 in November, 1920. Recent reports of business failures reflect the cumulative effects of previous slow business at a time of the year when the number of failures is normally large. R. G. Dun and Company’s comparative fig ures of the number and liabilities of business failures in the states of this district are shown in table “ L ” (see preceding page). Bank clearings during November totaled $1,541,402,000, or 9.6 per cent less than in N o vember, 1920, and 1.1 per cent less than in October. Clearings for November, Bank however, exhibit a smaller percenClearings tage of decline from last year’s fig ures than have clearings during any other month of 1921 compared with the same month in 1920. This, in conjunction with the fact that prices at both wholesale and retail have declined considerably more than 9.6 per cent during the year, indicates a substantial increase in the physical volume of business during the present year. The de cline in Novem ber clearings compared with the figures for O ctober is doubtless due to the smaller number of business days in N o vember. Considered geographically, decreases in clear ings occurred in November, 1921, compared with November, 1920, in all reporting cities except Berkeley, L on g Beach, Los Angeles and Oakland. The greatest comparative in crease, 12.8 per cent, was reported from Ber- (M) Bank Clearings*— Oct., 1921 Nov., 1921 4,361 Bakersfield ........... ■ ; 14,218 Berkeley ................ 4,604 Boise ....................... 28,828 Fresno ................... 16,249 Lon g Beach ......... 376,010 L o s Angeles ........ 50,671 Oakland ................ 9,355 Ogden .................... 13,876 Pasadena ............... 128,828 Portland ................ 2,855 Reno ....................... 29,901 Sacramento ......... 62,568 Salt Lake C ity . . . 11,195 San D ie g o .............. 573,700 San Francisco — 9,585 San J ose.................. 128,739 Seattle .................... 45,026 Spokane ................ 17,727 Stockton ................ 13,106 Tacom a .................. Total ................$1,541,402 *000 Omitted. $ 4,760 14,803 4,790 27,856 14,886 365,770 46,581 7,892 13,473 153,775 2,926 29,462 58,441 11,573 577,100 10,143 131,096 48,454 22,406 13,242 $1,559,429 Nov., 1920 $ 5,582 12,601 7,254 32,484 16,120 351,735 44,895 12,355 13,946 152,476 3,798 31,287 81,295 12,768 671,900 10,736 150,374 53,556 21,783 19,591 $1,706,536 keley, and the greatest decrease, 36.5 per cent, from Boise. Comparative figures of clearings for the 20 reporting cities of the district during N ovem ber, 1921, October, 1921, and November, 1920, are shown in table “ M .” MILLIONS N_ _ 1700 —^ — ' -N 1600---- s — -------1600 1 1500 ----- ^t : \ ,400 -----1300 --- --,200 - -------ISOO - / V -------1300 \ -------1200 2 3 -U H 7 o ‘» _9_ >' .. ,* iL— 2— gih --5- L. 7_„(Ì ' 9 »K!.. » Bank Clearings in 20 Principal Cities, Twelfth Federal Reserve District, 1920-1921. (in Millions of Dollars) Bills originating on the Pacific Coast are appearing in larger quantities on the open dis count market and are no longer confined to one or two cities. This supply, Acceptance however, is still insufficient to Market meet the investment demands of Coast buyers, and prime Eastern bills continue in good demand. Easier money conditions and a scarcity of prime bills combined during the period N o vember 15th to December 15th to effect a further reduction in rates, and prime bills of all maturities are now (Decem ber 15th) sell ing on a per cent basis compared with a 4 per cent basis on November 15th. During the latter part of November the demand for acceptances was steady with a heavy call for bills which would fall due before the end of the year. A t the same time a gradual broad ening of the market was noticeable, chiefly among country banks, but to a lesser extent among corporations and private individuals. By the middle of December this firmness had begun to disappear, due to the semi-annual conservation of cash holdings by the banks, and this tendency became more marked after the announcement of the new Government offering of Certificates of Indebtedness on D e cember 15th. The principal dealer on the Coast reports that 90-day bills continue to be in greatest favor, although a larger supply of 60-day bills resulted in a greater proportion of bills of that maturity being marketed during the past month than in the previous period. A rough classifi cation of bills marketed fo llo w s : 30 60 90 d a y ------- 6 . 5 % d a y . . . .3 3 .0 % d a y . . . .5 6 .3 % 120 d a y ... .3.6% 150 d a y ... .0.6% The 36 principal accepting banks of the dis trict reported total Novem ber purchases o f 15 Federal Reserve Bank of San Francisco ing time certificates of deposit) as reported by 78 banks in seven principal cities, decreased during the month ending November Savings 15th, sixteen-hundredths of 1 per Deposits cent, being on that date $735,669,000, compared with $736,824,000 on O cto ber 15th. During the year ending November 15th there was an increase of 4.4 per cent in savings deposits thus defined. The changes in the savings deposits in each of the seven principal cities are shown in the accompanying table “ N.” On December 12, 1921, the Secretary of the Treasury announced an offering of two series of Treasury Certificates of Indebtedness, both dated and bearing interest from Governm ent December 15, 1921; the certifiFinancing cates of series TJ-2 1922 matur ing June 15, 1922, bearing inter est at 4% per cent per annum ; and the certificates of series T D 1922 maturing Decem ber 15, 1922, bearing interest at the rate of 4J4 Prime Commercial Paper per cent per annum. Customers' Open Market Dec. 5 Nov. 5 Dec. 5 Nov. 5 The total amount offered was approximately Los A ngeles... 7 7 5^ w* $250,000,000. A ll of the Federal Reserve Dis Portland ......... 7 7 53/4 5/2 tricts over-subscribed their quota and sub 8 Salt Lake City 8 scriptions totaling $1,183,102,000 were re San Francisco . 6 - 6 /2 51/ 2 -5 34 ceived, for which the Treasury Department 6 - 6 /2 Seattle ............ 7 7 6 6 allotted $308,447,000. In the Twelfth Federal Spokane ......... 7 7 Reserve District, subscriptions totaling $32,The total amount in all savings accounts 700,000 were received, of which $18,555,000 against which pass books are issued, (exclud were allotted. acceptances of $9,103,681 compared with $7,392,415 in October, the increase being almost entirely in purchases of bills originating in this district. These bills were based primarily on grains, sugar, canned goods, and cotton, with a scattering of silk, rice and coffee bills. Purchases and holdings of acceptances of re porting banks appear in table “ O .” The current tendency toward easier inter est rates was reflected in declines of Per cent in the open market rate for prime com mercial paper at Los Angeles, PortInterest land and San Francisco, and in Salt Rates Lake City the rate on inter-bank loans was lowered from 8 to 7 per cent. On other classes of paper rates were generally unchanged. A statement of interest rates charged on prime commercial paper by banks in Federal Reserve Bank and Branch cities for the 30-day period ending December 5, 1921, and November 5, 1921, follow s: Ver Cent In<;rease (N) Savings Deposits*— Number of Banks Nov. 15,1921 Oct. 15, 1921 Nov. 15, 1920 or Decrease (—) Nov. 15, 1921 over Nov.’lS, 19 14 7 10 10 17 14 6 $235,874 74,271 38,393 21,871 324,945 28,348 11,967 $234,086 74,099 37,383 22,109 329,224 28,066 11,857 $217,160 69,291 38,436 21,563 308,708 36,127 13,344 8.6 7.2 — .1 1.4 5.3 —21.5 — 10.3 78 $735,669 $736,824 $704,629 4.4 Los A n g eles.... Oakland ........... Portland ........... Salt Lake City. . San Francisco.. Seattle .............. Spokane ............ Total ......... *In thousands of dollars. (O) Acceptances f— t Amount Accepted Nov. Oct. ------Amount Bought----------------------------------------- ^ Created in Twelfth District Nov. All Other Oct. Nov. Oct. Amount held at close of month Total Nov. Oct. Nov. Oct. Pacific Northwest ........$1,451,433 $1,140,199 $ 225,982 $ 270,08Í $1,957,511 $2,601,886 $2,183,493 $2,871,967 $ 6,679,742 $ 7,752,824 Northern California ... 3,461,612 3,580,105 2,291,734 2,078,211 2,571,826 937,664 4,863,560 3,015,875 2,916,197 3,109,149 Southern California . . 651,006 539,005 235,961 172,04Í 1,820,667 1,332,532 2,056,628 1,504,573 2,903,347 2,057,149 Other Districts ............. -0 -0 -0 -0 - j -0-0-0-0-0-0Total ..................... $5,564,051 $5,259,309 $2,753,677 $2,520,33^ $6,350,004 $4,872,082 $9,103,681 $7,392,415 $12,499,286 $12,919,122 1*36 banks reporting. 16 A slight increase in loans and discounts and in deposits, and a marked reduction in indebtedness to the Federal Reserve Bank, were the significant changes in the Banking condition of member banks during Situation the past month as shown by re ports received from 64 member banks in nine principal cities. Loans and dis counts of these banks increased $37,337,000 or 4.2 per cent in the five weeks ending Decem ber 7th. Increases in both time and net de mand deposits more than counterbalanced a small decline in Government deposits and the reported increase of $41,381,000 in total de posits made this loan expansion possible with out recourse to the Federal Reserve Bank. In debtedness of reporting member banks at the Federal Reserve Bank was reduced $29,058,000, or 52.2 per cent, during the five-week period and is now at the lowest point in the past tw o years. . Statement of the condition of the Federal 'R eserve Bank as of the close of business De cember 14, 1921, shows a slight increase in total reserves and Federal Reserve note cir culation, practically no change in total de posits, and a notable decrease in the amount of bills discounted, when compared with the statement of November 9, 1921. Total reserves of the bank at $284,116,000 show an increase of $14,673,000 over the previous record hold ings of November 9, 1921. Federal Reserve notes in actual circulation responded to the seasonal demand for currency at the year’s end, and rose $6,911,000, or 3.08 per cent, dur ing the five-week period. Bills discounted for member banks declined $23,979,000, or 27.2 per cent and at $64,050,000 on December 14th stood at the lowest point in the past two years. federal Reserve Note Circulation, Bills Discounted and Bills Bought in the Open Market, Federal Reserve Bank of San Francisco (in Millions of Dollars) PRINCIPAL RESOURCE AND LIABILITY ITEMS OF REPORTING MEMBER BANKS IN RESERVE CITIES IN TWELFTH FEDERAL RESERVE DISTRICT Dec. 7, 1921 N u m b er o f R e p o r tin g B a n k s ....................... ........................... Nov. 2,1921 6 4 Loans and D iscounts............................................................................... $ 914,375,000 Investments ............................................................................................. 311,626,000 Cash in Vault and with Federal Reserve Bank................................. 103,175,000 Total D eposits............................................................... .................... . . . 1,181,393,000 Pills Payable and Rediscounts with Federal Reserve Bank.......... 28,512,000 6 5 $ 877,038,000 313,053,000 97,059,000 1,140,012,000 57,570,000 Dec. 10,1920 6 6 $1,177,703,000 137,049,000 105,313,000 1,143,134,000 121,633,000 COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN FRANCISCO AT CLOSE OF BUSINESS DECEMBER 14, 1921 R E SO U RC ES Dec. 14, 1921 Nov. 9, 1921 Dec. 17, 1920 $269,443,000 94.657.000 $199,958,000 212.396.000 22,223,000 30.201.000 57.828.000 6,628,000 53.692.000 110.474.000 48.230.000 8,089,000 8,173,000 13.512.000 $ 94,362,000 50,423,000 $102,830,000 43,209,000 $225,908,000 53,629,000 $428,901,000 $415,482,000 $479,495,000 .$ 22,578,000 127,050,000 ,, 231,268,000 48,005,000 $ 22,617,000 126.704.000 224.357.000 41,804,000 $ 18,585,000 136.759.000 271.852.000 52,299,000 $428,901,000 42,831,000 38,785,000 $415,482,000 36.810.000 33.541.000 $479,495,000 52.087.000 34.830.000 Total R eserves.......................................................... •.......................... $284,116,000 86.273.000 Bills Discounted and B ought.................................. . . . ..................... Secured by United States Government Obligations.............. . 19,184,000 44.866.000 All O t h e r .......................................................................................... . United States Government Securities............................................... All Other Resources*........................................... T otal R esources .......................................................... L IA B IL IT IE S .............. Federal Reserve Notes in Actual Circulation. Total Liabilities............................................ •(•Includes “ Deferred Availability Items” ...v . t ( ........- I - - - ......... . ,.
@FedFRASER