The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY REVIEW OF B U S IN E S S C O N D IT I O N S Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. XIX San Francisco, California, December 20, 1935 T W E L F T H F E D E R A L In d u stria l p ro d u c tio n a n d T w e lfth D istric t N o v em b e r ences. a t after V a lu e ch an g ed, th is of of w o rk s w e ll allo w a n c e so m e y ear, w ere o n ly w e r e s u b s t a n ti a ll y lo w e r in m id - D e c e m b e r t h a n a m o n th ea rlie r. fo r d u rin g season al p e rm its in flu w as is u n c u sto m a ry c o n tra c t w as effect p a y m e n ts fo r m e n ts b elo w th e currency. re su lte d u te d of tra d e b alan ces. sh a rp ly . I n N o v e m b e r, as in th e tw o p r e c e d in g m o n th s , T w e lfth in th e b ased an d D is tric t in d u s try s h a re d o n ly in d ire c tly n a tio n a l im p ro v e m e n t, p rim a rily u p o n w h ic h ex p a n sio n ste e l p ro d u c tio n . in h as been a u to m o b ile L o c a l a u to m o b ile a s s e m b ly a n d tire a n d ru b b e r p la n ts h a v e p a rtic ip a te d in th e ste e l n a tio n a l im p ro v e m e n t fa b ric a tin g p la n ts hav e an d stru c tu ra l been a c tiv e , th e se in d u strie s a re re la tiv e ly m u c h ta n t in th is d istric t th a n in th e b u t le ss im p o r U n ite d S ta te s a s a w h o le . C o n d itio n s in th e lu m b e r, p e tr o le u m , c a n n in g , m in in g , a n d la rg e ly tiv ity d eterm in e in th is th e le v e l of com e from s m a lle r in d u strie s. in d u stria l ac im p o r ta n t in flu a d iv e rsified g r o u p D u rin g N o v em b e r p rin cip al c h a n g e s re c o rd e d w e re s e a so n a l re d u c tio n s in lu m b e r e x p a n sio n an d c a n n in g a c tiv ity in p e tr o le u m D e p a rtm e n t is c u s t o m a r y sto re sale s in c re a se d c o n trast d ec lin e. in n ew fu rth e r m o d e ls, w ith A f te r a d e c lin e in m o re w ere th a n 13 p e r c e n t fro m 73 to 81 erage, a n ew tra ffic w a s L a rg e ly h ig h th e u su al sa le s seaso n al O c t o b e r , t h i s b a n k ’s p e rc e n t of th e sin c e J u ly 1923-1925 1931. av In te rc o a sta l c o n sid e ra b ly lo w e r th a n as th e a A t in O c to b e r. re su lt of p a rtic ip a tio n in m id - in c re a s e of th e co m m ercial th e se in d em an d featu res in m e m b er b an k tim e , U n ite d o f lo c a l c o lle c tio n s, p a r tly excess of T re a su ry G o v ern m en t in c o m e ta x D ecem b er of su p p ly o n ly re c e ip ts se c u ritie s p a y m e n ts 18. w ere reserv e S ta te s m o d e ra te ly fro m an d d u rin g b ecause n ew fo u rth th e of issu e s q u arter w eek C o n s e q u e n tly , th is fo r c o n trib sam e in su b sta n tia l to an d C h ristm a s tra d e re q u ire an re d u c tio n o th e r d is tric ts d isb u rse m e n ts en d in g u su al so u rce of d istric t b a n k in g reserv es o n ly p a r tia lly o ffset th e ite m s te n d in g to re d u c e m e m b e r b a n k re se rv e b alan ces. Agriculture R a in fa ll d u rin g N o v em b e r an d ea rly D ecem b e r a n d fo r th e s e a s o n to d a te h a s b e e n le ss th a n la st y e a r a n d sh o rta g e early in b elo w of rain g ro w th p a stu re s som e sh o w sev eral T h e in d elay ed fa ll-so w n th e need crops. on th e T h e w o rk an d R an g e s an d of a d d itio n a l a lth o u g h th a n farm m o istu re w h o le th e y are C a ttle a n d s h e e p a re in b e t te r th e y h av e been a t th is s e a so n in y ears. to ta l v o lu m e 1935 th a n th e lo n g tim e n o rm a l. h as of areas, co n d itio n R e fle c tin g e a rly a u to m o b ile se a so n a lly a d ju ste d in d e x of fre ig h t-c a r lo a d in g s rose B o th in g o o d c o n d itio n . ad v an ced la rg e r th a n in N o v e m b e r 1934. of a o u tp u t. in N o v e m b e r a n d in tro d u c tio n an d to in to fro m T re a su ry p ic tu re in d u strie s d istric t, a lth o u g h en ces fre q u e n tly of m o tio n of fu n d s arisin g fin a n c ia l tra n s a c tio n s . aw ard s m o d e ra te ly F o r th e p e rio d as a w h o le , th e re a n e t o u tflo w su b sta n tia l to ta l re p o rte d fo r O c to b e r. M e a s u re s ex p an d ed C O N D IT IO N S e m p lo y m e n t in th e d e c lin e an d D IS T R IC T m a in ta in e d b u ild in g alth o u g h tim e p u b lic w ere R E S E R V E No. 12 ap p ears o u tp u t in to of d istric t fa rm hav e b een 1934 an d p ro d u c tio n so m e w h a t la rg e r ab o u t th e sam e as th e a v e r a g e o f th e p a s t fiv e y e a rs . T h e U n i t e d S ta t e s D e p a rtm e n t of A g ric u ltu re e stim a te d to ta l fa rm in c o m e in th is d istric t m o n th s of 1935 to b e th e sim ila r p e rio d T h e acreag e d u rin g th e first te n 15 p e r c e n t g r e a t e r t h a n in of 1934. seed ed to w in te r w h e a t in O re D e c e m b e r issu e s of G o v e rn m e n t se c u ritie s, to ta l g o n , W a s h i n g t o n , a n d I d a h o is s m a l l e r th i s y e a r lo an s th a n la st b e c a u se o f c o n tin u e d d ry co ld w e a th e r. b an k s an d in v e stm e n ts in c reased in g D e c e m b e r 18. th e in c re a se , as in p la c e p rin c ip a lly e sta te an d on R e fle c tin g of T w e lfth fu r th e r in th e D is tric t c ity fo u r w eek s en d T o ta l lo a n s w e re also h ig h e r, o th e r in re c e n t m o n th s, ta k in g lo a n s o th e r th a n on real se c u ritie s. in flu e n c e s p a rt of th e m in a te d slo w ly crop an d fle c tin g u n fa v o ra b le O c to b e r an d alread y is in p la n te d poor has g e r c o n d itio n . R e w e a th e r co n d itio n s N o v em b er, e a rlie r d u rin g e stim a te s of co m m ercial ap p le p ro d u c tio n h a v e b ee n re d u ce d of a m o re o r le ss te m p o ra ry c h a ra c te r, m e m b e r b a n k re se rv e b a la n c e s T h a t b y 13 p e rc e n t. th is y e a r ’s A c c o rd in g to D e c e m b e r 1 re p o rts, in d ic a te d h arv est w as 2 6 ,2 3 2 ,0 0 0 MONTHLY REVIEW OF BUSINESS CONDITIONS 90 b u sh e ls, c o m p a re d d uced la st w ith y ea r an d 3 5 .2 6 5 .0 0 0 d u r i n g 3 0 ,0 4 0 ,0 0 0 b u s h e ls p r o an th e av erag e p erio d o u ttu rn of 1928-1932. F o llo w in g u n s e a s o n a l r a in s in O c to b e r , f r o s ts S to ra g e su p p lie s, on D ecem b er by c o n sid e ra b ly in d ic a tin g December 1935 w h ile 1 th a n so m e w h a t y ear m o re la rg e r s till a ago, w ere th a n in g re a te r red u ced N o v e m b e r 1934, P ric e s eg g s co n su m p tio n . of in e a rly N o v e m b e r d id f u r th e r d a m a g e to g r a p e s , d e c lin e d a s is u s u a l a t t h i s t i m e o f y e a r b u t a v e r raisin s, c o tto n , a n d ag ed w in te r tru c k crops, a n d d e T h a t p a rt of th e raisin tra y s w as d am a g e d g rap e b y rain crop in still on th e m id -N o v e m b er, slig h tly A lth o u g h la y e d th e m a t u r i n g o f c itr u s fru its in C a lifo rn ia . w h a t sm a lle r O u t p u t is n o w e a rlie r, th e e stim a te d as g re a te r th a n be F o re c a sts o ran g e a b o u t of th e ch an g ed v o lu m e little la rg e av erag e p ric e s o n ly crop, ad v an ced N o v e m b e r d id N av el n o t reach T h a n k sg iv in g , m o n th . T h e cro p is 2 4 p e r c e n t s m a l l e r t h a n of o th e r slig h tly after th e la st y ear. C a lifo rn ia of w h ic h u n til d u rin g 1 4 .3 4 8 .0 0 0 b o x e s sam e 1935-1936 cro p , m a rk e tin g su b sta n tia l y e a r ’s th e b u t ab o u t th e re c e n t y ears. d u rin g th e lo w e r 1934. th a n L ig h t m o n th th o se an d la st as A v erag e th e f. o . b . are n o w re c e iv e d h eld th a n on a c o n tin u e d h av in g b er to b er of retard ed an d g rain s In N o v e m b e r o. 1934 th e c o m p a ra b le b. p ric e . p ric e re C o tto n an d p ro d u c tio n A riz o n a N o v em b er. or 12 b u t th e w ere ab o u t recen t red u ced 9 fo r C a lifo rn ia p ercen t d u rin g O u t p u t w a s p la c e d a t 3 3 0 ,0 0 0 b a le s , p erce n t fiv e e stim a te s le ss th e y ears th a n sam e la st as th e 1928-1932. d e c lin e w as d u e y e a r ’s p ro d u c tio n av erag e P ra c tic a lly to fre e z in g d u rin g all o f th e w e a th e r in n u m b e r ab o u t o r 1934. fle c ts 60 th e cost feeds. th e y h av e p e rc e n t o f th e cro p h a d b er b een 1, w h e r e a s g in n e d 83 b y 2 6 2 ,0 0 0 b een g in n e d p e rc e n t of th e D ecem b er N o tw ith sta n d in g a b ales b y or 79 D e c e m 1934 crop h ad 1 la st y ea r. seaso nal d e c lin e , eg g re c e ip ts in le a d in g d is tr i c t m a r k e t s w e r e 6 p e r c e n t la rg er in N o v e m b e r a p p ro x im a te ly v em b er 15 av erag e th a n p ercen t of th e a y ear la rg e r fiv e e a rlie r th a n th e p re c e d in g an d N o y ears. 1930. It cro p in th a n th e on is feed C a rlo t S h ip m e n ts D e c id u o u s F ru its C itru s F r u i t s ____ V e g e ta b le s .......... E x p o r ts W h e a t ( b u . ) -----B a rle y ( b u . ) ____ R e c e ip ts * C a t t l e ...................... H o g s ...................... S h e e p ...................... B u tte r ( l b s . ) ____ E g g s ( c a s e s ) ____ W h e a t ( c a r lo t s ) . B a rle y ( c a r l o t s ) . S to r a g e H o ld in g s * (e n d o f m o n th ) W h e a t ( b u . ) ____ B ea n s ( b a g s ) . . . B u tte r ( l b s . ) ____ E g g s ( c a s e s ) ____ /----- N ov e m b e r — N 1935 1934 7,625 7,77 0 4,553 4,680 7,111 7,918 1935 77,347 4,553 30,464 to D ate 1934 80,945 4,680 30,676 38,329 959,165 146,347 531,791 50,161 5,145,867 2,767,244 2,662,288 929,960 1,145,999 1,316,860 2,083,446 4,700,548 4,167,358 68,383,699 70,320,906 1,806,322 1,673,369 39,422 29,298 5,058 5,000 ^ 1934------------- N N ovem ber O cto b e r 4,905,000 5,581,000 2,548,000 2,636,000 2,530,000 3.082,000 119,000 '2 93,000 la m b th a n lig h t u n le ss T h e m a rk e tin g in 1932, of 1933, c a ttle fin ish e d re beef re la tiv e ly lo w co n d itio n th a n in a n y th e 1936 A riz o n a in on 1934, th e T w e lfth la rg e r recen t y ear. feed C a li in n u m b e r is slig h tly p ric e s in ad v an ced an d la m b be to ta l D istric t L a m b c u sto m a ry , y e a r sin c e ea rly w ill an y of la m b s m a rk e ts is to of C o ast as w ith g o o d severe. w e ll seaso n in in d istric t a n d be th a n cip al P a c ific are for H a y b e tte r cro p v o lu m e th e to ago. p rin in N o on D ecem b er w e re 45 to 60 p e rc e n t h ig h e r th a n a y ear ago. 1 Industry In co n trast c o u n try w ith as a th e sh arp w h o le , im p ro v e m e n t ch an g es in for T w e lfth D is tric t in d u stria l o u tp u t w e re of a p p ro x im a te ly seasonal 107,917 115,843 120,660 223,351 290,278 255,340 4,659,618 4,999,751 131,095 123,406 4,088 4,030 879 690 , 1935------------- >> N ov e m b e r O cto b e r 6,185,000 6,299,000 2,813,000 2,613,000 3,415,000 5,058,000 139,000 349,000 p le n tifu l, a y ear th e *At principal district markets. <------Season are sm a lle r th a n v e m b e r Agricultural Marketing Activity— in good. feed in g th a t an d fa ile d to fo r in a t th is la rg er an d p ro sp ects fo r w in te r in d u r D e c e m fair su p p lie s C a lifo rn ia th e b u t la rg e r are N o v e m of u n u su a lly feed e x p e c te d ea rly h alf C a ttle d em an d b een is A lth o u g h fo rn ia are in c re a se S h eep b y of 4 c e n ts p a stu ra g e ex p e c te d ab u n d a n t la rg e r F ran cisc o ) th ro u g h o u t th e on la rg e m o n th , te m p e ra tu re s feeds p ercen t g o o d an d A b o u t of areas. are T h is th e w as m e asu red first o f first w a te r, fo r som e of c a ttle is th e c o n sid e re d used th e p erce n t (as lo w th e c o n d itio n s in N o v em b er. are lo sses w e a th e r y ea r of D ecem b er. an d an d e x c e lle n t c o n d itio n w in te r a th e n e t in c re a se fro m m id d le sto c k in im p o r ta n t c o tto n g r o w in g c o u n tie s of C a lifo rn ia ea rly 35 P ric e s g ro w th re p le n ish su rp lu se s c e iv e d w a s $ 2 .9 9 p e r b o x . th e ra in fa ll w in te r f. d u rin g 1 w ere reco rd ed N o v e m b e r th e av erag e sto ra g e advance, a been L ack an d th e S an sto ck s N o tw ith sta n d in g of e a rlie r. th ro u g h in e a s te r n m a r k e ts d u r in th a n of sto ra g e q u o ta tio n s fo r 92 s c o re b u tt e r in S a n to b o x N o v em b e r D ecem b er y ear to p er w e ll. o u t in g N o v e m b e r w e re ac c o m p a n ie d b y an ad v a n ce $ 4 .4 6 P o rtla n d , u su a l, in d ic a tin g th a t c o n s u m p tio n fa irly sto ck s d u rin g of le m o n s u p d u rin g n e t re d u c tio n m o v e m en t in g su p p lie s g oo d co n su m e r d em an d sam e of la st N o v e m b e r. o f b u tt e r in F ra n c isc o , a n d L o s A n g e le s m a rk e ts w e re s o m e re d u c in g th e q u a lity m a te ria lly . to h ig h e r th a n re c e ip ts creases S ta te s p ro p o rtio n s in in d u s tria l reflecte d d u rin g N o v em b er. m e asu res su b sta n tia l fo r th e In U n ite d ex p a n sio n in p ro d u c tio n of a u to m o b ile s, a re s u lt of th e u n u s u a lly ea rly in tro d u c tio n of ste e l. in d u stry T w e lfth is c e n t, of th e m o d e ls th is y e a r, a n d a u to m o b ile d o m in an t n o r th e im p o rta n c e ste e l in th e D istric t. In d u stria l O reg o n of n ew N e ith e r e m p lo y m e n t d e c lin e d in C a lifo rn ia a p p ro x im a te ly re sp e c tiv e ly , fro m 7 an d m id -O c to b e r an d 13 to in p er m id - December 1935 N o v e m b e r, b u t th e se th a n re d u c tio n s w e re n o is u s u a l a t t h i s t i m e o f y e a r . ev ery th a n m a jo r in w as in d u stry , N o v e m b e r 1934, c e n t h ig h e r in O re g o n . p a y ro lls N o v em b er. release at fish c a n n e rie s in O c to b e r . b ly p la n ts m o re th e b o th sta te s stu d io s an d an d an d m o d e ra te ly fa c to rie s, to o k V a lu e v em b er d e c lin e d an d a t fu rn itu re M o tio n 3 in a 20 p e rm its p rin c ip a l m illio n an d for b een a lte ra tio n s sm a lle r an d th a n in n ew m o n th an d w as 50 o rd ers raise d m o n th . so m e w h a t p e rc e n t of th e B o th th e 1923-1925 N o v em b e r d u rin g th e to tal an d O c to b e r th e p re c e d sh ip m e n ts p ro d u c tio n , a w ere c irc u m sta n c e la r g e ly s e a s o n a l in c h a ra c te r . I n m id - N o v e m b e r , th e te rm s of th e C a n a d ia n R e c ip ro c a l T ra d e c o n sid e ra b le in nounced. T h is a g re e m e n t re d u c e s th e c o m b in e d ta riff a n d ex c ise d u rin g c itie s fig u re N o a p p ro x i ab o u t th e N o n re sid e n D e effe c tiv e ta x lu m b e r in c lu d in g th o u san d m u m of an d b o ard 250 on fe e t to w ill a d d itio n a l n u m b e r $ 2 .0 0 . A n feet a d m itte d im p o rts of th is season. T h e are lim ite d to 25 p erce n t of a an n u a l m a x i of th e se D o u g la s th e fir redu ced sp ecies S h in g le s an n u al w ill are to C an ad a d o m e stic c o n su m p tio n . fig u re D o u g l a s fir a n d h e m l o c k w h i c h w ill b e a d m i t t e d P u b lic tiv e ly N o v em b e r w o rk s la rg e m illio n 1934. c o n tra c ts d u rin g d o lla rs. re m a in e d N o v em b er, D u rin g co m p ara a g g re g a tin g S e p te m b e r, 22 O c to b e r, at th e th a n red u ced v a rie tie s u n d e r th e p ared w ith th a n 25 p erce n t la rg e r in th e c o r r e s p o n d in g p e rio d la s t y e a r. th a n A p p ro x i- th e a Employment— f --------- Cah forn i ia---------- \ r "— — O reg on N o . of N o . of N o . /— E m pl oy ee s —> N o . /— Em pl oy ee s — » of N ov . No v. of Nov. N o v. 1934 1934 Firm s 1935 I n d u s tr ie s Firm s 1935 112 20,568 16,102 All I n d us tri e s* . . . 1,097 138,911 128,903 (+ 2 7 . 7 ) (+ 7.8) S to n e , C lay, and 155 115 G lass P r o d u c t s . 49 5,581 5,106 3 93 T e x tile s .................... 14 C lo th in g , M illin e ry , and L a u n d e r in g 122 F o o d , B e v e ra g e s , and T o b a c c o . . . 245 P u b lic U tilitie s . . . 47 O th e r I n d u s t r i e s !. 527 M isc e lla n e o u s . . . . 47 W h o le s a le and R e t a i l ................... ( + 3 4 .8 ) (+ 9 .3 ) L u m b e r and W o o d M a n u fa ctu re s . . 348 13,089 (+ 1 7 .4 ) 1,969 (+ 7 .2 ) 11,151 37 1,837 8 8,746 (+ 7 .5 ) 8,138 30,229 ( — 6.1) 44,620 (+ 4 .6 ) 32,198 71: 31 10,436 ( + 30.3) 1,958 ( + 3 3 .7 ) 8,008 226 ( + 7 .1 ) 211 3,007 ( + 76.2) 1,707 4,786 ( + 4 .1 ) 4,596 1,465 58,488 49,168 (+ 5 .5 ) 46,602 11,985 26 * P u b lic utilities, w h o le s a le and retail figu res n ot in clu d e d in this tota l. ^ L a u n d e r in g o n ly , f I n c lu d e s the f o llo w in g in du stries : M eta ls, m a ch in e ry , and c o n v e y a n c e s ; le a th e r and ru b b e r g o o d s ; oils and p a in t s ; p r in tin g and p a p e r g o o d s . Figures in parentheses indicate percentage change1fromNovember 1934. in U n ite d sm all th a t y ear. red u ced fo u r tim e s la rg e r 1935, it a m o u n ts th e v o lu m e S ta te s in c re a se in Im p o rts rates an d are to sm all of lu m b e r it is d em an d be co m co n su m ed p ro b ab le for a d m itte d w h en th a t lu m b e r on in o n ly th e Industry— I n d ex es of daily average p r o du ct io n , ad ju st ed for se asonal variation (1923-1925 daily av e rag e= 100 ) r — --------- 1935------------- ^ ,-------- 1934 G eneral N ov. C a rlo a d in g s — I n d u s t r ia l. 67 TT E le e . P o w e r P r o d u c t io n 17311 M a n u fa c tu r e s 69ft R e fin e d M in era l O i l s t . . 1591Í O ct. Sept. A u g. 72 60 68 16911 168 168 N o v . O ct. Sept. 52 52 50 151 149 149 69 158 64 145 102 60 159 99 50 121 94 67 113 118 52 121 93 58 94 146 48 116 98 65 38 168 91 60 59 72 55 35 71 56 39 71 55 36 11 2 ! 102 42,654 65,290 (+ 1 1 .6 ) 14,007 (+ 1 6 .9 ) ab o u t feet of to o n ly 5 p e rc e n t o f d o m e s tic p ro d u c tio n of th e se an m o re is 250 m illio n e stim a te d im p o rts d u rin g a n d N o v e m b e r, a w a r d s to ta le d 61 m illio n d o lla rs , am o u n t rate th e of $ 4 .0 0 a g g re g a te v a lu e of th e se p e rm its w a s d o u b le th e for A lth o u g h a n of sp ecies from at $ 4 .0 0 c h a r g e . w ere re m a in o n th e free list b u t im p o rts fro m h av e th e 1936 h e m lo c k b o ard be 1, rep airs a p p e a r to su b je c t to a fir a n d m illio n h e m lo c k ra te ; J a n u a ry be at 1934. la st h alf of abo ve d e c lin e d fro m o rd ers b elo w in fo r re sid e n tia l b u ild in g usu al in A g re e m e n t issu e d a 69 w ith in g tia l b u ild in g p e rm its in c re a se d m o d e ra te ly . issu ed p ercen t A t sa m e as th a t re p o rte d fo r O c to b e r. c lin e s in p e r m its 12 in d u stry . d istric t d o lla rs, In creases th e at co m p ared p ercen t of food, b e v e r lu m b e r re m a in e d av erag e le v e ls , b u t s h ip m e n ts In O reg o n , sh a rp ly in d e x p ic tu re p la c e . of b u ild in g 7y2 m a te d th a n h ig h e r in N o v e m b e r h o w ev er, d e c lin e d u s u a l in th is m o n th , a n d th e s e a s o n a lly a d ju s te d lo w e r e m p lo y e d th e p ro d u c tio n n u m b e r of w o rk ers m a n u fa c tu re in L u m b e r N o v e m b e r b u t th e re d u c tio n w a s n o la rg e r th a n m o n th . la b o ra to rie s lo w er sew er can d o u b le d p re c e d in g to b a c c o W o rk s an d C a lifo rn ia . la rg e v e g e ta b le su b sta n tia lly th a n e m p lo y m e n t in th e crease d u rin g c u sto m a ry m o r e w a g e e a r n e r s t h a n in O c to b e r . te x tile P ro g re s s A d m in istra tio n . 22 E m p lo y m e n t at a u to m o b ile a s s e m in ages, la rg e ly b y th e ag g re g a te sto rm of th e M e tro p o lita n W a te r D istric t of S o u th e rn in fa c to rie s w a s s u b s ta n tia lly th a n C o u n ty , p ro je c ts fin a n c e d an d fo r O n a se a so n a lly a d ju ste d fru it w as d r a in s in L o s A n g e le s th e a w ard s N o v e m w as la rg e r c o m p rise d is s u e d in b er S e v e ra l la rg e c o n tra c ts w e re also le t o n p ro je c ts C a lifo rn ia , th e w o rk ers m a te ly h alf of to ta l c o n tra c ts p e r n eries w a s re p o rte d , a n d th e at in C a lifo rn ia in c re a se d In of an d in la rg e r p ra c tic a lly In e m p lo y m e n t 8 p erce n t h ig h e r b a sis 91 federal reserve agent at san francisco 64 150 104 65 148 100 83 69 W o o l C o n s u m p t io n !. . . . 1281Ï 193 S la u g h te r o f L i v e s t o c k . . 1071T l o i n M in era ls P e tr o le u m (C a lifo r n ia ) f 1021Í 98 97 L e a d (U n ite d S t a t e s ) !. 68 59 67 S ilv e r (U n it e d S t a t e s ) $ . 68 75 71 B u ild in g and C o n s t r u c t io n # 5811 56 51 B u ild in g P e rm its — V a lu e 24 L a r g e r C i t i e s ................. 21 IT 22 S m aller C i t i e s .............. 37 35 36 E n g in e e rin g C o n tr a c ts A w a r d e d — V a lu e T o t a l ............................. 99 96 82 E x c lu d in g B u ild in g s 173 169 148 49 42 32 54 25 33 13 20 13 18 10 17 79 147 76 138 55 99 in 221 fNot adjusted for seasonal variation. ^Prepared by Board of Governors of the Federal Reserve System. #Indexes are for three months ending with the month indicated, ftPreliminary. 92 p a rt of th e c o n stru c tio n ab so rb th e fect on m a rk e t C ru d e lo w -ra te o il 6 7 6 ,0 0 0 in d u s try im p o rts alo n e w ith b u t w o u ld little ef b arrels in d a ily C a lifo rn ia d u rin g m o re th a n in c reased th e fu rth e r in liv e sto c k flo u r av erag ed N o v em b e r, in o r O c to b e r, a n d first h a lf of D e c e m b e r. are e stim a te d stitu te th a n to b y h av e th e w ith cru d e o il s to c k s , w h i c h A m erican ad v an ced 6 0 ,0 0 0 b a r r e l s en d in g to p er at d ay N o v em b er. m o n th , h o w ev er, th e y P e tro le u m th e rate in th e A t th e w ere of In m o re fo u r m o n th s end slig h tly of th e lo w e r th a n y e a r e a rlie r. C an n in g an d p ro c e ssin g of fru it a n d N o v em b e r, w as N o v e m b e r fro m b y p ack th is th a n to ta l in m id - u n h arv ested a cro p s so m e w h a t e x c lu d in g la st for th e c a n n e rie s te rm in a te d to in d ic a te to m a to e s, y e a r la rg e r to m a to e s, w e a th e r e a rlie r in th e m o n th . e stim a te s of of v e g e ta b le a b ru p tly d am ag e co ld s to r m y T ra d e in th e b er th a n an d m ack erel w ere to m a to w e ste rn co u n try O c to b e r. fu rth e r d e sp ite 1934. a b u t w h o le . pack, p ric e s p la n ts T h e th e h av e to ta l h av e le ss of th a n d e c lin e s in C a lifo rn ia . Trade L ess th a n th e u s u a l s e a s o n a l d e c lin e w as re c o rd e d in f r e ig h t- c a r lo a d in g s d u r in g N o v e m b e r. In C a lifo rn ia , b ecau se d u ced of a lo a d in g s la te w ere a g ric u ltu ra l sh ip m e n ts of lu m b e r su sta in e d p a rtly seaso n , w h ile cau sed re so m e w h a t m o re th a n th e u s u a l d e c lin e in th e P a c ific N o r th w e st. R ail m o v e m e n t of m e rc h a n d is e le ss th a n se a so n a lly . s h ip m e n ts sin c e w ere to th e an d m is c a tc h e s of av erag e 5 p ercen t la rg e r in th e c o m p a ra b le p e th e se b een ad v an ced d e liv e rie s b een 1935-1936 of p ro d u cts su b sta n tia lly season to re c e n tly . sa rd in e s d ate to sm a lle r th a n in ra ilw a y in d e p a rtm e n t in a n y freig h t N o v em b e r v alu e in sto re sa le s N o v e m b e r w ere th a n in R E T A I L T R A D E —Tw e l f th D is tr ic t P er cen ta ge cha nge s in va lu e of sales an d st oc ks f----------- 1935 co m p a r e d wi th 1934----------,----- N E T S A L E S ------- , STOCKS J a n . 1 to en d of N o v e m b e r* November November tu n a o u tp u t o f N o v e m b e r is fo r th a n 1928. D a ily a en d d em an d T o ta l la rg e r F ish h as b e e n u n u s u a lly a c tiv e a n d d e sp ite th e la rg e r th o u g h o u tp u t cane su g a r o u tp u t seaso n al p r o d u c tio n o f b e e t s u g a r in p ro d u cts, sta te s as S m a lle r su b sta n tia lly h ig h e r th a n of an d m u c h sm a lle r rep o rted , b u t c a n n ed of th e se v a rie tie s u p rio d d e c lin e d T o ta l refin ed b e e t a n d c a n n in g in C a lifo rn ia w a s le ss a c tiv e in N o v e m in m o d e ra te ly m ills c e lla n e o u s c o m m o d itie s in th e d is tric t d e c re a s e d m a jo r a c tiv ity in in c reased d istric t in c re a se d T h e h ig h r a te o f c r u d e o il o u t p u t h a s r e s u lte d in s u b sta n tia l a d d itio n s a t u su a l. p ric e s. p ro d u c tio n a b o u t 2 6 ,0 0 0 b a r r e l s a December 1935 monthly review of business conditions A l shore d u rin g th e 13.3 13.9 14.7 15.6 13.2 14.1 11.3 13.9 7.0 15.3 23.4 15.7 23.8 31.2 16.3 D e p a r tm e n t S to re s . . . . L o s A n g e le s ................. O th e r S o . C a lif o r n ia .. O a k la n d ........................... S an F r a n c i s c o ............... B a y R e g io n ................... C e n tra l C a lifo rn ia . . . P o r t la n d f ........................ co rre T a c o m a f ........................ S alt L a k e C i t y ............ A p p a r e l S t o r e s ................. F u rn itu r e S to re s ............ ( 77) ( 6) ( 8) ( 5) ( 8) ( 18) ( 5) ( 8) ( 4) ( 5) ( 7) ( 4) ( 40) ( 35) (1 5 2 ) 9.8 10.0 16.7 10.6 8.9 9.6 13.1 10.3 6.5 10.5 11.2 8.5 16.2 25.8 12.2 4.8 2.9 16.6 5.1 4.0 4.8 2.8 7.0 5.4 11.6 9.7 2.4 11.9 7.4 5.8 ( 54) ( 6) ( 5) ( 5) ( 7) ( 16) ( 5) ( 7) ( 4) ( 5) ( 6) ( 4) ( 28) ( 26) (1 0 8 ) sp o n d in g p erio d of th e p re c e d in g seaso n , o u tp u t of can n ed h ig h e r v e rsio n c a tc h sa rd in e s th is of in season. a sm a lle r to re d u c tio n C a lifo rn ia T h e in c re a se p ro p o rtio n is ru n n in g re fle c te d of th is d i y e a r ’s p la n ts. O u tp u t of o th e r m a jo r d istric t fo o d in d u strie s in c re a se d w ith th e la rg e r o n a se a so n a lly e x c e p tio n th a n in of a d ju sted liv e sto c k N o v e m b e r b a sis sla u g h te r 1934. and, w as S la u g h te r of Distribution and Trade — C arloadingst f l n c l u d e s fiv e a p p a re l s tores each in P o r tla n d an d T a c o m a w h ic h are n o t in c lu d e d in d is tric t d e p a rtm e n t s to r e to ta l. F ig u r e s in pare n th e se s in d ica te n u m b e r o f s to r e s r e p o rtin g . " N o v e m b e r 1935 had the s a m e n u m b e r o f tr a d in g d a y s as N o v e m b e r 1934. O c to b e r m o n th s T o t a l .................................... ..81ÏÏ M e r c h a n d i s e ...................... ..95Ü 73 78 78 83 74 83 65 79 62 70 67 78 T o t a l .................................... ..66 W e s t b o u n d ........................ ..95 E a s tb o u n d ........................ ..57 71 102 61 70 77 66 61 100 51 79 87 76 78 94 71 80 81 78 y ear, fro m $Daily average. §At end of month. #Percent of collections during month toamount outstanding at first of month. flPreliminary. b een 86 p e rc e n t of th e p e rc e n t, th e h ig h e st v em b er 1931. sa le s in a b o u t th e th e tw o sam e. A s 1923-1925 p o in t av erag e reach ed to sin c e 91 N o W H O L E S A L E T R A D E —Tw e l f th D is tr ic t P er ce nt ag e ch an ges in val ue of sales N o v e m b e r 1935 /— co m p ar ed with-——, O ct . 1935 N o v . 1934 A g r ic u ltu r a l I m p le m e n ts . . A u to m o b ile S u p p l i e s .......... .. . , E le c tr ic a l S u p p l i e s .............. R etail T r a d e A u t o m o b ile S ales$ T o t a l ..................................156 83 77 97 71 71 68 P a s s e n g e r ........................153 75 69 87 66 63 63 C o m m e r c ia l ................. ..188 158 157 179 124 148 124 D e p a r tm e n t S to r e S ales$ ............................. ..91 86 84 82 81 78 78 61 63 62 62 61 63 S t o c k s § .............................6511 C o lle c tio n s # f--------------------- A ct u a l F ig u r e s ------------------- >> R e g u l a r ........................49.9 50.7 46.3 47.6 48.1 49.8 45.6 I n s t a l l m e n t ............ ....18.1 18.9 19.3 18.7 17.8 18.5 17.6 w h ereas u su a lly a re su lt, th e se a s o n a lly a d ju s te d in d e x a d v a n c e d ,--------------1935-------------- \ ,---------1934--------- x N o v . O ct . Sept. A u g. N o v . Oc t. Sept. I n d e x e s adj ust ed for seasonal variation (1923-1925 a v e r a g e = 100) Intercoastal Trade th is hav e P a p e r and S t a t io n e r y .......... S ale s rep o rted tra d e w e re in O c to b e r . o ccu rred in b y 1.1 3.7 — 4.3 — 4.6 — 8.6 2.8 — 8.2 — 1.4 — 18.1 — 9.9 — 5.2 26.3 30.8 57.8 9.9 6.5 6.8 32.1 23.9 11.8 22.6 26.4 29.7 16.8 37.6 12.3 15.0 21.8 w h o le sa le rs 5 p e r c e n t s m a lle r in C u m u l a ti v e 1935 co m pa re d wi th 1934 in 11.4 16.2 0.6 12.8 14.2 te n lin es of N o v e m b e r th a n T h is d ec re ase w a s sm a lle r th a n h as N o v e m b e r of o th e r recen t y ears. December 1935 T o ta l b y sa le s 22 ex ceed ed p e rc e n t, a th o se la rg e r of N o v em b e r y ea r-p e rio d 1934 in c re a se N ew a u to m o b ile sale s in c re a s e d b y a b o u t o n e d u rin g N o v em b er. In o n ly tw o tio n o th e r fru its N o v em b e r c e ssio n crease th a n h av in g in b een O c to b e r, ab o u t th e av erag e 17 p e rc e n t. th is y e a r re fle c ts a c h a n g e T h e re in in th e b u y in g se a so n in d u c e d b y th e e a rly in tro d u c tio n of n e w m o d e l cars. N ew rev iew . 33 y ear le a d , an d p er oun ce on in s to o d th a n an y v em b e r N o v em b e r on reco rd , ex cep t N o 1925. In te rc o a sta l d u rin g w a te r-b o rn e N o v em b er, to n n a g e fo llo w in g d ecreased ex p a n sio n in th e f o u r p r e c e d in g m o n th s , a n d w a s s m a lle r th a n in N o v e m b e r 1934. m a y be ch ie fly on can n ed d u rin g fru it w ith th e p ric e s are d e c lin e s c h ie fly fro m p e tro le u m sh ip m e n ts zin c ste a d y w h ile th e 20. b elo w h ig h th e A p ril 26 an d U n ite d n e w ly A t th is p o in t alm o st S ta te s m in ed p o in t of 26 it th e to P a c ific red u ced C o a st; w ere la rg e r lu m b e r th a n in T o ta l th e C o a s t also in c reased . u ry w h o le sa le c o m m o d ity L a b o r S ta tistic s m id -N o v e m b e r to p ric e in d e x ad v an ced of th e slig h tly m id -D e c e m b e r b ecau se of h ig h e r q u o ta tio n s fo r fa rm p ro d u c ts a n d foods. p ric e s in th e fiv e la rg e s t p o p u la - Bank Debits* — lo a n s a n d 34,824 F i r s t 11 m on th s 1934 1935 November 1934 $ 26,894 $ 327,429 C a l if o rn ia $ 276,784 16,536 17,099 35,334 29,785 688,619 196,848 23,9 97 123,755 7,144 47,232 893,710 23,760 11,150 4,607 17,813 15,223 15,067 25,037 24,116 508,250 152,367 17,324 68,453 6,158 31,598 636,932 18,236 8,370 3,021 14,485 127,895 170,457 241,953 318,764 7,202,367 1,884,332 233,233 1,174,374 79,750 452,078 8,642,634 217,657 106,869 42,749 173,563 107,464 197,983 202,826 250,674 5,842,911 1,792,522 196,841 667,725 62,277 324,231 7,432,403 185,978 89,012 33,435 153,960 16,141 13,042 162,664 131,120 Nevada 8,624 8,431 92,490 83,160 5,268 145,621 11,308 3,694 116,880 11,035 53,810 1,543,401 139,449 43,744 1,345,941 123,144 O regon T o ta l 15,916 60,718 15,782 51,985 153,579 587,596 138,887 524,866 6,194 6,324 169,864 36,921 28,911 5,391 12,361 4,551 5,314 132,859 30,862 18,413 3,882 11,468 55,778 60,611 1,698,662 399,991 274,155 54,216 126,607 50,630 56,692 1,499,328 330,156 240,508 45,329 115,223 ............ $2,701,775 *In thousands of dollars. 2 % fo u r in v e stm e n ts w eek s of T w e lfth en d in g for T h e of $1,999,729 $26,799,113 $22,545,754 b o n d s of th e se 18, b an k s S ta te s T re a s \ y2 p e r c e n t an d D is su b sta n tia lly D ecem b er p a rtic ip a tio n p ercen t n o te s. to ta l d is tric t a llo tm e n t of b o n d s, e x c lu siv e ex ch an g e su b sc rip tio n s, 7 5 4 ,6 0 0 a n d 000. a m o u n te d a llo tm e n t of n o te s to ta le d C h an g es in o t h e r s e c u r itie s n e g lig ib le d u rin g th is tin u e d ste a d y b u t m o d e ra te th e c e p tib le November 1935 E u g e n e ............... P o r tla n d ............ S alem ................. U ta h O g d e n ................. S alt L a k e C ity . W a s h in g t o n B e llin g h a m . . . . E v e re tt .............. S e a t t l e ................. S p o k a n e ............ T a c o m a .............. W a lla W a lla . . . Y a k im a .............. p ric e The Credit Situation in m id - D e c e m b e r is s u e s of U n ite d ................... on b elo w ea stb o u n d Prices R eno ounce b u y in g re fle c tin g B a k ersfield B e r k e l e y ............ F r e s n o ................. L o n g - B e a ch . . . L o s A n g e le s . . . . O a k la n d ............ P a sa d en a .......... S a cra m en to . . . . S an B e r n a rd in o S an D ie g o . . . . S an F r a n c is c o . . S an J o s e ............ San ta B a rb a ra . S an ta R o s a . . . . S t o c k t o n ............ Id a h o B o i s e ................... on c e n ts silv e r. th e P h o e n i x ............... .$ c e n ts reached p er T r e a s u r y ’s d o m e stic sp o t c e n ts 29% w as la rg e ly Arizona to le v e l it h a d y ear c e n ts th e 51% d u rin g th e A tla n tic R e ta il fo o d lo w er u p 6 5 ^ D e c e m b e r 1, a t w h i c h fo r a lm o s t fo u r m o n th s , to D ecem b er th e w ere fro m of n o w fru its. tric t c ity m e m b e r b a n k s in c re a se d B u rea u d rie d u n d er ra n g in g p re c e d in g m o n th a n d m o v e m e n t of iro n a n d stee l fro m an d p erio d T h e d ec re ase d u rin g th e m o n th a ttrib u te d s h ip m e n ts T h e D e re sp o n sib le p ric e o f s ilv e r d e c lin e d fro m is u s u a l la rg e r d rie d ag o o f c o m m e rc ia l v e h ic le s d e c re a s e d m u c h le ss th a n in in c re a s e d en d in g O f th e n o n fe rro u s m e ta ls, q u o ta tio n s fo r c o p fo reig n S ale s w ere w eek s w ere little p ercen t fo r so m e e x c e e d in g th o s e in a n y m o n th sale s D istric t fo u r q u o ta tio n s M o st a p er, T o ta l T w e lfth th e v e g e ta b le s ch an g ed th a n p a s s e n g e r c a r sale s re s p o n d e d N o v em b er. th e in c rease. W h o le sa le fru its v ig o ro u s ly to th is in n o v a tio n , w ith re g is tra tio n s sin c e J u ly . in d u rin g an d fo r th is y e a rs in th e p a s t th ir te e n h a v e sa le s b e e n la rg e r in c e n te rs so m ew h at c e m b e r 4. H i g h e r p r i c e s f o r d a i r y p r o d u c t s a n d th a n in a n y o th e r m o n t h o f 1935 e x c e p t J u ly . th ird 93 federal reserve agent at san francisco sin c e la te p erio d . Ju ly . to $ 4 2 ,- $ 3 2 ,1 4 5 ,- h o ld in g s w e re T o ta l lo a n s ex p a n sio n L o an s to co n p er bro k ers, w h ic h flu c tu a te d ir r e g u la r ly in N o v e m b e r , w e r e slig h tly e a rlie r h ig h e r in m i d - D e c e m b e r t h a n an d lo a n s on se c u ritie s to a m o n th cu sto m e rs o th e r th a n b ro k e rs c o n tin u e d to e x p a n d slig h tly . R eal e sta te lo a n s an d all o th e r la te N o v em b er, su b se q u en t o th e r” w ere th re e p ra c tic a lly p rin c ip a lly u n u su a lly m ad e sh a rp ly ste a d y L o an s g e n e ra lly th o se u n ch an g ed , in c re a sin g w eeks. c la ssific a tio n , c lu d in g an d w ere lo a n s, a fte r in th e reg ard ed in th e “ all as in for co m m e rc ia l in d u s tria l p u rp o s e s , h a v e in c re a s e d e ra b ly d u rin g th e p a s t y ea r. in c o n sid P re lim in a r y fig u re s a s o f N o v e m b e r 1 ,1 9 3 5 s h o w a to t a l o f $ 5 6 7 ,0 9 9 ,- 000 of such d istric t, cem b er lo a n s w h ereas 31, all o f th is 1934 b y th e w as in c re a se all m e m b er b an k s c o m p a ra b le to tal $ 4 8 9 ,7 3 6 ,0 0 0 . h as ta k e n p la c e in on th e D e P ra c tic a lly at b an k s in th e e ig h t re s e r v e c itie s, th e to ta l fo r o th e r b a n k s h a v in g in c re a se d o n ly 2 p e rc e n t. D istric t m e m b e r b a n k su b sta n tia lly reserv e b alan ces w e re lo w e r in th e w e e k e n d in g D e c e m b e r 18 th a n in m id - N o v e m b e r . F o r th e p erio d as a w h o le th e re w a s a la rg e n e t o u tflo w of fu n d s to o th e r d istric ts fo r th e ac c o u n ts of b an k s an d th e ir cu sto m e rs, a lth o u g h d u rin g th e w e e k e n d in g N o v e m b e r 27 tra n s fe rs in to th is d is tric t e x MONTHLY REVIEW OF BUSINESS CONDITIONS 94 ceeded th e la rg e ly fu n ds o u tw a rd th e in re su lt m o v e m e n t of a co n n e c tio n by $ 1 2 ,5 0 0 ,0 0 0 , su b sta n tia l w ith recen t tra n sfe r of co rp o rate re s in c e th e b a n k in g h o lid a y e a rly in 1933, a n d th e ir re la tiv e ly d a ily w id e av erag e d istrib u tio n . b a sis, f u n d in g a c tiv ity o n th e P a cific C o a st. R e fle c tin g d istric t m e m b e r C h ristm a s to ta le d 120 p erce n t of ren cy tra d e in c reased rev iew , a b an k B an k S an of w eek s of w eek, a w h ic h p erio d , in lo c al th e th is of also th e u n d er red u ce R eserv e first th re e T re a su ry D istric t w e re In th e rela tio n sh ip su b sta n tia l to F ed eral S ta te s T w e lfth fo r c u r w eek s D u rin g co lle c tio n s. h o w ev er, re su lt fo u r U n ite d th e d em an d te n d e d at F ran cisc o . th is of th e b alan ces d isb u rse m e n ts excess d u rin g fe atu re m e m b e r as re q u ire m e n ts w as cash in su ccee d in g rev ersed p a y m e n ts fo r December 1935 re stric te d excess b an k s m illio n le g al C o m p u ted reserv e d u rin g d o lla rs o n N o v e m b e r o r an req u irem en ts. a b alan ces of 1935 a m o u n t T h e se 61 fig u re s to d is tric t b a n k s , a re n o t as a d e q u a te a m e a s u re of e x c ess fu n d s as a re s im ila r fig u re s fo r be th e c o u n try p o ssib le as a w h o le , fo r m a n y id le f u n d s f r o m b ecau se d istric t b a n k s ea stern it to w o u ld tra n sfe r c o rresp o n d en ts to re se rv e d e p o sits a t th e F e d e ra l R e s e rv e th e ir B an k of O v e r th e p a s t 2 y 2 y e a rs T w e lfth S an F ran cisc o . D istric t c o u n try b a n k s h a v e in c reased th e ir b a l re c e n tly issu e d G o v e rn m e n t se c u ritie s a n d th ird ances q u arter a n c e s m a in ta in e d b y b a n k s in lo c a l re s e rv e c itie s lo c a l one in c o m e ta x co lle c tio n s w eek m e n ts d id in b y n o t th e B a n k cred it m e m b e r co u n ts, th e T w e lfth T re a su ry d u rin g of of first tim e D istric t w ith c o rresp o n d en ts been re la tiv e ly w eeks, h o w ev er, tire ly o u t tim e. T h is of a t th e R eserv e in d eb t to B an k on p o st-w a r y ea rs th e te m p o ra ry lo a n s b an k s h av e R eserv e w as of no d is t h a t all been B an k liq u id a tio n c o rresp o n d en ts, o u tsid e la rg e r th a n th e in an d b a l d istric t p rev io u s h av e y ears. S in c e n o i n t e r e s t is a l l o w e d o n t h e s e b a l a n c e s , to th e ex ten t th a t th e y are in excess of a m o u n ts n e c e s s a ry a n d c o n v e n ie n t to p ro v id e fa c ilitie s fo r ex ten d ed th ro u g h m e m b e r c ity th is F ran cisc o b an k s th e ir d isb u rse re serv e b alan ces. S an w ith n et offset th re e excess d a y s e a r l y in D e c e m b e r th e F e d e r a l R eserv e to T h e o p e ra tio n s th e re fo re te n d e d to r e m e m b e r b an k F o r a few th e e n tire ly p re c e d in g an d T re a su ry sto re c o llectio n s. at en one d isc o u n ts of in te re st b u t n o t of in te rb a n k tra n sa c tio n s, th e y re a d ily b y lo c al banks. In m a y be w ith d ra w n th is m a n n e r reserv e b alan ces a t a n y o n e tim e m ig h t b e su p p le m e n te d w ith o u t re d u c tio n of e a rn in g a sse ts. T h u s fig u re s of e x c e ss re s e rv e s fo r th e sta te th e b er th e d istric t u n d e r am o u n t of excess fu n d s o f lo c a l m e m banks. T h e tre n d of excess reserv es an d th e ir d is m a te ria lly g r e a te r sig n ific a n c e th a n th e fa c t th a t trib u tio n b e tw e e n d istric t re se rv e c ity a n d c o u n v ery try few b an k s in th e to p a st y ear. T h e to ta l v o lu m e R eserv e b o rro w d istrict n ecessary B an k tia l an y h av e tim e fo u n d d u rin g it th e of d is c o u n ts a t th e h a s , in fa c t, n o t b e e n o f s u b s t a n tial p ro p o rtio n s of 1933. at at an y tim e sin c e la te su m m e r T h is c irc u m s ta n c e reflects th e s u b s ta n g ro w th of excess m e m b e r b an k reserv es 1935— O c t . O ct. O ct. N ov. N ov. N ov. N ov. D ec. D ec. D ec. 1 6 ,. . . 23 , , . ,. 30 6. . . . 1 3 ... . . 2 0 . . . ., . 27, , . 4. . . , 1 1 .... 18. . . . . + 4.3 — 3.5 -f- 1.5 — .6 + .6 — 1.5 + 2.8 — 1.9 — .7 4 -2 .1 C o m m er ci al O p er at io ns + 15.5 — 26.3 — 9.7 — 1.1 — 5.9 — 13.8 + 12.7 — 16.1 — 28.7 — 7.6 Treasury O p er at i o n s — + + + + + + + + — 1.2 3.4 6.5 13.9 9.0 3.0 10.2 7.3 15.6 20.4 W eek E n d in g M ember Bank R es er ve D ep o s it s 1935— O c t . 1 6 . . . O c t . 23 O c t . 30 N ov. 6. .. . . N o v . 13. , , N o v . 20 Nov. 27. .. .. D ec. 4. . . . . D ec. 1 1 .. . D e c . 18. . . . . — .3 — 2.2 — 1.4 + 7 .3 — .3 — 3.2 + 1 .3 + 3 .6 — 1.6 + 1 .7 + 2 6 .6 — 23.7 + .5 + 6.1 + 3.7 — 8.9 + 25.2 — 14.5 — 11.7 — 27.7 O ther F.R .B . Accounts — — — — + — — + — + 7.7 .5 .8 1.2 .3 .2 .8 .2 .5 .1 ch a rts. In th e is d u rin g sh o w n th e in th e first cisco , L o s “ c ity ” c la ssific a tio n O g d en , th e A n g ele s, P o rtla n d , O a k la n d , S e a ttle , “c o u n try ” g ro u p S a lt an d in c lu d e s e lev en a c c o m p an y in g a re in c lu d e d a ll m e m b e r b a n k s w i t h h e a d o ffic e s in S a n t-----------D e c . 18 1935 Tot al Sup ply + 18.6 — 26.4 — 1.7 + 12.2 + 3.7 — 12.3 + 25.7 — 10.7 — 13.8 — 25.9 USES O F FU N D S Demand for Currency 1935 F ra n L a k e C ity , S p o k an e, w h ile m e m b e r b an k s in ( i n m illion s o f d ollars) SOURCES OF FUNDS Week Ending b an k s of FED ER A L RESERVE BANK O F SAN FR A N C ISC O SO U R C ES A N D USES O F B A N K IN G RESERV ES Tw e l f th D is tr ic t C h a n g e s in millions of dolla rs du rin g th e w e e k s indi cat ed R es er v e Bank Credit m e m b e r m o n th s Tot al Demand + 18.6 — 26.4 — 1.7 + 12.2 + 3.7 — 12.3 + 2 5 .7 — 10.7 — 13.8 — 25.9 - C o n d it io n -----D ec . 11 N o v . 20 D e c . 19 1934 1935 1935 201 T o t a l B ills an d S ecu rities, . B ills D i s c o u n t e d ............................. B ills B o u g h t .................................... U n ite d States S e c u r it ie s .. 199 T o ta l R e s e r v e s .......................... 422 T o t a l D e p o s i t s ........................... 326 R e s e r v e N o t e C ir c u la t io n .. 280 R a tio — R e se rv e s to D e p o s it and N o te L ia b ilit ie s .......... 69.6% 201 201 167 199 428 331 199 422 332 273 166 331 275 212 279 7 0 .1 % 6 9 .8 % 6 8 .0 % R E P O R T I N G M E M B E R B A N K S —T w e l f th D is tri c t ( in m illion s of dollars) t------------------ C o n d it io n ■■ ■ — > D e c . 18 D e c . 11 N o v . 20 D ec . 19 1934 1935 1935 1935 L o a n s and I n v e s tm e n ts — T o t a l . . L o a n s to B ro k e rs and D e a le r s . . . L o a n s o n S e cu ritie s to O th e rs (e x c e p t b a n k s ) ........................... A c c e p t a n c e s and C o m ’ l P a p e r . . . L o a n s o n R ea l E s t a t e ...................... L o a n s t o B a n k s .................................. O th e r L o a n s ......................................... U . S. G o v . D ir e c t O b lig a t io n s . . O b lig a tio n s G u aran teed b y U . S. O th e r S e c u r itie s ............................... R e s e r v e w ith F . R . B a n k ............... D u e fr o m D o m e s t ic B a n k s ............ D e m a n d D e p o s it s — A d ju s t e d . . . . T im e D e p o s i t s .................................... U . S. G o v . D e p o s it s ........................... D e p o s its o f O th e r B a n k s .............. B o r r o w in g s ......................................... 2,164 13 2,093 11 2,076 8 1,989 29 170 24 368 1 361 736 135 356 177 225 786 1,024 103 277 170 24 368 1 362 675 133 349 190 248 797 1,012 60 284 168 25 369 1 352 669 130 354 196 240 797 989 66 278 191 20 361 2 314 679 39 354 155 212 681 973 105 231 FEDERAL RESERVE AGENT AT SAN FRANCISCO December 1935 all o th e r an d c itie s Ju n e of m a in ta in e d w ith b u t an d th is b y b o th little co n seq u en t to w n s. y e a r g ro u p s n et u p o n J a n u a ry be reserv e b alan ces w h ereas of b an k s ch ang e. an B etw e en a c tu a l flu c tu a te d R eq u ired in c re a se in reserves, to ta l tim e an d n e t d e m a n d d e p o sits, in c re a se d m o d e ra te ly w ith a fro m e a rlie r b a la n c e s d u e to ances fro m due ceeded b an k s b alan ces du e d e p o sits su b je c t u p o n su b sta n tia l in c re a s e in excess a c tu a l reserve b alan ces of c ity b a n k s m o re th a n o ffset a fu rth e r a d v a n c e M ILLIO N S OF D O LLAR S to reserve to th e an d in p rocess g ro ss A C TU A L RESERVES re s e rv e .) am o u n t hen ce of m e n ts in are in A u g u st abo v e re q u ire m e n ts an d excess o f th is g ro u p a v e ra g e d 34 m illio n in N o v em b e r th a n in d e p o sits of c o u n try slig h tly d u rin g Ju n e. b an k s th is reserv es w ere red u ced A s ig n ific a n t of c o u n try w eek d u rin g Ju ly ch an g e b an k s w as n et B an k in g ch an g e A c t of b ecam e m e m b e r p ro v isio n , an d cash w ere an d p rev io u sly th a t ite m s in to d e c lin e th a t excess p ric e in 80 p erce n t m u c h of b an k s in S e p te m b e r. c o u n try h ig h e r th a n bank s. h ad In c ity N o v e m 76 p e rc e n t reserves w h ile b an k s to tal ex b an k s h ad re ex ch an g es an d d u rin g th e m id d le in th e first th r e e 30 p erce n t of N o v em b e r S e p te m b e r av erag es la tte r w eek s an d ea rly of N o D ecem b er lo w e r b u t w as flu c tu a te d p a rt of th a n in a lm o s t tw ic e O c to b e r. irre g u la rly S to c k b u t w ere reserv e p o sitio n c o n s id e r a b ly b u t a d v a n c e s in o th e r g r o u p s w e r e la st in th e T h a t m a in ta in ex e m p t fro m due slig h t a n d of co m G o v ern m en t d e of excess h ig h e r th a n effe c tiv e . b alan ces process an d A u g u st. b an k s S ta te s fro m c o rre sp o n d in g ly reserv es a p p ro x im a te ly th e ir p ro v id e d 1935 w as th e m e th o d th a t d e d u c te d in a s u b s ta n tia l an d n ew d e p o sits reserv es a g a in st U n ite d p o sits w h ic h th e th e d em an d req u ired in w ere re q u irem en ts, v em b er reserv e b r o u g h t a b o u t in th e of A u g u st w h en p u tin g an d be D a ily a v e ra g e s h a re tu r n o v e r o n P a c ific C o a s t d o lla rs h ig h e r c o n tin u e d p erio d , of serv es 59 p e rc e n t a b o v e re q u ire m e n ts. reserv es A g g re g a te to o f d istric t c ity all c o u n tr y sto c k m in im u m su b je c t reserv es 51 p e r c e n t o f le g a l r e q u i r e p ro p o rtio n a te ly ber, M on th ly averages o f daily am ounts. “ C ity ” group includes banks in eight reserve cities. “ C o u n try ” group includes banks in all other cities and tow ns. in req u ired req u irem en ts, to excess cess reserv es M E M B E R B A N K R E S E R V E D E P O S I T S -T w e lf t h D istrict effect of th e d e p o sits d e p o sits re s u lte d reserv e C u rre n tly , 19 3 5 ex w ere b a n k s a n d ca sh ite m s co lle c tio n re s e rv e s of th is g ro u p RESERVES- ite m s b an k s, h o w e v e r, th e p ro v isio n p e r d em an d d ecrease RESERVES T h e of u p o n creased , risin g fro m EXCESS b an k s, b o th (If b a l ite m s d is tric t c ity m e m b e r b a n k s w a s n o t a p p re c ia b le . F o r co u n try R E Q U IR E D c o lle c tio n m ittin g b alan ces d u e fro m COUNTRY BANKS d e d u c tib le o th e r b an k s. an d to d e p o sits, w ere d is re g a rd e d u n d e r th e o ld m e th o d o f c o m p u tin g rev isio n in d em an d ite m s o n ly fro m t h e s u b s e q u e n t fiv e m o n t h s , h o w e v e r , a slig h t re d u c tio n g ro ss th e se reserves. re su ltin g D u rin g d e d u c te d 95 th is P ric e s in O c to b e r. so m e of lo sses w e re P acific w e re fra c tio n a lly m o n th ea rlier. c ific sto c k s im p ro v e d n o te d . C o ast c o rp o ra tio n b o n d s h ig h e r o n D e c e m b e r 21 th a n a M u n ic ip a l b o n d s, h o w e v e r, w e re slig h tly w e a k e r. m e n t tru st B an k E x c e p t fo r a few sto c k issu es, sm all in v e st m a rk e tin g C o a st se c u ritie s w a s of n ew c o n fin e d to th e P a m u n i fro m b an k s c ip a l b o n d fie ld . A p p r o x i m a t e l y $ 4 ,3 0 0 ,0 0 0 b o n d s c o lle c tio n m ig h t o f la r g e r c itie s w e re S U M M A R Y O F N A T IO N A L o ffered . C O N D IT IO N S Prepared by the Board of Governors of the Federal Reserve System In d u stria l w h ic h little p ro d u c tio n u su a lly ch an g e trib u tio n creased of m o re P ro d u c tio n se a so n a lly d u c tio n 1925 fro m th a n a n d in sh o w ed N o v em b er. to D is co n su m ers in E m p lo y m e n t. in d e x 95 O c to b e r of T h e B o a r d ’s in d u stria l p e rc e n t of th e 97 to c o n tin u e d to d e c lin e d in a c tiv ity so m ew h at. fu rth e r th a n in c re a s e d u rin g an y in p ercen t th is 1923- in N o m o st o th e r of N o v em b e r to m o n th in d u s ste e l a in in c re a s e an d a t in m ills th a t an d h ig h e r shops. c lin es ste e l, te x tile T h e re at an d th e a t sh arp to silk p a y ro lls, m id d le th is rep o rted n ew m ills fo r th e shoe a t th a n w h ic h O c to b e r little In creases in a u to m o b ile , ra ilro a d an d la rg e r of sh o w e d y ear. m a c h in e ry , in d u strie s w ere th e ch an g e N o v em b er, p erio d sa w m ills, th e d e c lin e d . from of th e A c tiv ity e m p lo y m e n t m id d le d u rin g A u to m o b ile c o n tin u e d after S e p te m b e r. e m p lo y m e n t w e re iro n m a in ta in e d D ecem b er. b eg an d e c lin e fo r of N o v em b e r w o o le n th e ch an g e c o tto n y ear in u su a lly to le v e l w a s w eek s w h ic h F a c to ry in th is h ig h th re e p ro d u c tio n p ro su b sta n tia lly O u tp u t p rev io u s an d first m o d e ls O u tp u t of in d u strie s p ro d u c in g d u ra b le creased rate e m p lo y m e n t, season, sea so n a lly . fro m N o v e m b e r, w h ile tries th is O c to b e r to ad ju sted av erag e an d a t c o m m o d itie s ad v an ced v em b er. g o o d s d ec lin e car, ra ilro a d seaso nal fa c to rie s, an d rep air silk d e an d MONTHLY REVIEW OF BUSINESS CONDITIONS 96 ray o n m ills, w e a rin g V a lu e of rep o rted h alf la rg e ly esta b lish m e n ts th e to F . c o n tra c ts W . in c re a se of in T h e re o th e r ty p e s of c o n stru c tio n co rd in g of to fin a l w as p ro d u c tio n sh o w ed b y an an d a an w h ile in c re a se . in th e th e 1935, ac D e p a rtm e n t in c re a se of ab o u t PE R C E N T 20 C re d it. E x cess h ad $ 3 ,3 1 0 ,0 0 0 ,0 0 0 th e re su lt of N o v em b e r th e first tw o 18, a s a reserv es of m e m b e r in c re a s e d to a n e w h ig h on la rg e ly D ecem b er c o n tin u e d co n sid e ra b ly b er d u rin g d u rin g of d ec lin e D ecem b er. b an k s, w h ic h of a d u rin g g o ld th e im p o rts, w eek co n seq u en ce of 11, le v e l as d e c lin e d en d in g D ecem seaso nal d em an d s FACTORY EMPLOYMENT an d v o lu m e th e farm $ 5 ,1 2 0 ,0 0 0 ,0 0 0 season. in of th e co m p ared T h e d ro u g h t y ea r of c o tto n w ith crop, m o n th s at b y 1 0 ,7 3 4 ,0 0 0 a m o u n te d $ 4 ,7 8 0 ,0 0 0 ,0 0 0 w h ic h bad has been w e ath er, b ales 1934. C ash crops an d farm in c o m e co m p ared liv e sto c k an d fro m m a rk e t fro m fo r G overn- PER C E N T cu rren cy b alan ces an d w ith c o n n e c tio n a th e w ith la rg e in c re a se F ed eral in R eserv e m id -D e cem b e r T re a su ry banks, fisc a l C h an g es c itie s 18 in d u rin g re fle c te d G o v ern m en t in c re a se s rep o rtin g th e b an k s fo u r w eek s p rin c ip a lly th e fin a n c in g . in in le a d in g D ecem b er in flu e n c e T h e se o f $ 3 1 0 ,0 0 0 ,0 0 0 101 en d in g b an k s h o ld in g s of n ew sh o w ed of U n ite d PER CEN T W H O L E S A L E P R IC ES RA ILR O A D F R E IG H T -C A R L O A D IN G S I n d e x of U n it e d Sta te s B u r ea u o f L a b o r Statistics. B y m o n t h s 1929 to 1931; b y w e e k s 1932 to date. (1926=100.) L a te s t figure is for w e e k endi ng D e c e m b e r 14. In d e x e s of daily average n u m b e r of ca rs loa ded, adj ust ed for seasonal vari ati on (1923-1925 av e ra g e= 10 0 ). m e n t ren tal ab o u t 1935, a s an d le ss co m p ared th a n N o v em b er, c lin e in is th e w ith fo r th e is sh ip m e n ts at sto re fro m e stim a te d c a le n d a r y ear $ 6 ,3 8 7 ,0 0 0 ,0 0 0 la s t y e a r. usu al c u sto m a ry in c reased p a y m e n ts F re ig h t-c a r lo a d in g s re fle c tin g d e p a rtm e n t b asis, b en e fit $ 6 ,8 0 0 ,0 0 0 ,0 0 0 D istrib u tio n . th a n in o p era tio n s. is e x c e p tio n a lly s m a ll o u t p u t o f 9 ,6 3 6 ,0 0 0 b a le s in in g s o v er v alu e of 64 cro p s recen t e stim a te d w ith th e of B a n k ch an g e le v e l a fter In d e x o f fact ory em plo ym en t, ad ju ste d for seasonal v a r i a tion (1923-1925 a v e rag e= 10 0) . n o w b y of in c re a se d little g en eral IN D U ST R IA L PR O D U C TIO N red u ced at O c to b e r, sh o w ed w eek s T h e p ric e s, I n d e x of in du str ia l p r od u ct io n, a dj u st ed for seaso nal v a r i a tion (1923-1925 a v era ge —100). p e r c e n t in la st an d P ric e s. c o m m o d ity PER C E N T 1934, to d u rin g d e c lin e , b u ild in g , sh o w ed e stim a te s A g ric u ltu re , as C o rp o ra tio n , N o v em b e r re sid e n tia l C rop aw ard ed , D o d g e in D ecem b er. seaso n al, A g ric u ltu re . C o m m o d ity p ro d u cin g w h o le sa le c o n stru c tio n b y c o n tin u e d first an d a p p a re l. December 1935 d ecreased seaso nal am o u n t p rin c ip a lly of a m isc e lla n e o u s th is tim e sa le s, on O c to b e r of y ear. a to d u rin g sm a lle r d a ily d e freig h t V a lu e av erag e N o v em b er. S tates in G o v ern m en t lo a n s an d of d e p o sits. sh o w ed b y in U n ite d in th e m a n d s, in c o m e ta x se c u ritie s, S ta te s G o v ern d e p o sits o f $ 2 7 0 ,0 0 0 ,0 0 0 in 11 fo llo w in g fo r h o lid a y p a y m e n ts, an d G o v ern m en t $ 1 1 0 ,0 0 0 ,0 0 0 in d em an d D ecem b er of w ith d ra w a ls of d e a le rs A d ju ste d en d in g $ 2 5 0 ,0 0 0 ,0 0 0 of n ew an d a fu rth e r g ro w th w eek s re su lt se c u ritie s, b ro k ers $ 2 0 0 ,0 0 0 ,0 0 0 m e n t th re e to secu ritie s. an d th e d e c lin e d w eek, cu rren cy as a d e th e p u rc h a se M O N T H LY R E V IE W OF BUSINESS CONDITIONS Federal Reserve Agent Federal Reserve Bank of San Francisco Supplement San Francisco, California, December 20, 1935 G r o s s I n c o m e G ro ss in c o m e of th e u cts in d u stry in D is tr ic t w ill b e in 1932, b u t o f th e I n d u s tr y lu m b e r an d tim b e r p ro d th e T w e lfth a b o u t tw ic e o n ly L u m b e r slig h tly F ed eral as la rg e m o re R eserv e in th a n 1935 as tw o fifth s in T h e fro m sh o w n com e th e sin c e 1932 sta n d s sh arp re d u c tio n w h e n g ro ss m o re th a n v alu e 75 n u al w ag es o u t in p aid of b y co m p a riso n b etw e en lu m b e r p e rc e n t. 1929 sa le s D u rin g th e in an d d ec lin e d in w ith fro m d ro p p ed b y y ears a n fro m fir of b o ard C h art m ills tw e e n 2. lo c a te d 6 .4 b illio n 1929 an d in T h e in b y y ears th e b o ard 1932. eq u ip m en t s h a rp ly 1935, in c re a se d sid e ra b ly p u rch ases c u rta ile d . sa le s abo v e of 1932 b y D u rin g fir reg io n In th e c o n stru c tio n in d u s tr y , c o n s u m p tio n of lu m b e r c u t in th e D o u g la s fir r e g i o n d e c lin e d 3 .8 b il lio n b o a r d f e e t, a n d P E R THO U S AN D B O A RD F E E T in d u stry 1933, 1934, a n d lu m b e r le v els th e is s h ip m e n ts D o u g la s 25F an d of m ills feet o r 64 p e rc e n t b e D O LLAR S ous, of th o se v o lu m e 10 w ere y ea r feet re c e iv e d ers in c u rre d n u m e r each each B I L L IO N S OF B O A R D F E E T lo sses, fa ilu re s w e re sh ip m e n ts d u rin g n e a r l y $ 2 0 0 ,0 0 0 ,0 0 0 to le s s t h a n $ 5 0 ,0 0 0 ,0 0 0 , o w n h eav y R e g i o n lu m b e r reg io n all lu m b e r s h ip p e d 1932, d e c lin e d th o se in d u stry in v o lu m e D o u g la s p ric e p e r th o u s a n d u p o n Im p ro v e m e n t F i r No. 12 s i n c e 1 9 2 9 is s h o w n o n C h a r t 1, a n d t h e a v e r a g e on sta tistic s. D o u g la s e stim a te d th e a s la r g e a s in 1929, a c c o r d in g to e s tim a te s b a s e d a v a ila b le th e Vol. X I X a t p ric e s re su lte d in co n m a rk ed r e c o v e ry in g ro s s in c o m e , a d e v e lo p m e n t w h ic h d ire c tly an d b e n e fite d o w n ers m e n t as u sed L u m b e r in c o m e in lu m b e r co m p an y e m p lo y e e s w e ll as m a n u fa c tu re rs th e sale s of th e of e q u ip in d u stry . are th e lu m b e r p re d o m in a n t so u rce an d tim b e r of p ro d u cts in 1929 d u stry of th e d o lla r sa le s in d ic a tiv e e n tire T w e lfth of of lu m b e r lo g s, an d p o sts, s h in g le s, th e refo re ch an g es g ro ss ch an g es are in c o m e p ro d u cts of 1930 1931 in ro u g h ly th e in d u stry . 1932 1933 f934 1935 1929 1930 1931 1932 1933 1934 1935 C hart I C h art I I L U M B E R S H IP M E N T S D ouglas fir region T otal annual lum ber shipm ents. L U M B E R P R IC E S D ouglas fir region A v era ge m ill prices per thousand board feet. o th e r s o u rc e s s u c h a s sa le p o le s, la th , in tim b e r In c o m e re c e iv e d fro m of D istric t, a n d lu m b e r h ew n co o p erag e, tim b e rs veneer, an d an d tie s, p la n in g ex p o rts 1.1 of lu m b e r b illio n b o ard fro m feet, th a t reg io n a c c o rd in g d ecreased to e stim a te s su b m itte d b y th e S p ecial L u m b e r S u rv e y is s m a l l in r e l a t i o n t o t h e v a l u e o f l u m b e r s a le s. m itte e th e M o v e m e n ts in th e v a lu e o f sa le s o f lu m b e r o rig i d e c lin e m ill p ro d u c ts n a tin g in O re g o n la rly is th e an d la rg e D o u g la s w e ste rn sig n ific a n t. re c e iv e d fro m o rig in a te s in facto rs w h ic h D o u g la s in of th e fir T w e lfth te rm s, b u t D istric t an d th e it h av e b een ch an g es D o u g la s in o p erated d istric t. lim ite d sa le s in th e v o lu m e o f s h ip m e n ts w a s p a n ie d b y s h a r p re d u c tio n s in m ill p ric e s, w h ic h to ta l in c o m e lu m b e r sam e sa le s g en eral in th e lu m b e r o th e r d isc u ssio n to a re p ro d u ced d ire c tio n an d sh ip m e n ts in M arch ag ed h ig h e r th a n F ed eral R eserv e D istric t. th e D o u g la s M ill p ric e s a th o u sa n d in 1932, 4 .5 b i l l i o n ad v an ces sh ip m e n ts in b o ard feet, feet. m ill 1929. sta rte d 1933 sh ip m e n ts an d in in lu m b e r fir r e g io n d u rin g b o ard an d 25 p e rc e n t to o r a v e r $ 3 .0 5 in c re a se d T h e in itia l p ric e s w ere a s s o c ia te d w ith a s h o r t liv e d re v iv a l in c o n s tr u c tio n a c tiv ity p le n ish e d lu m b e r a n d tim b e r p ro d u c ts in d u stry T w e lfth fro m 1933. $ 1 4 .5 5 th e e n tire 1932 th a n M a r k e d in c re a s e s in m ill p ric e s a n d g en eral th e T h e ac co m a v e ra g e d 4 4 p e rc e n t lo w e r in e x t e n t o f c h a n g e s a ls o a p p ly in a g e n e ra l w a y to of C o m C om m erce. p a rtic u T h is fir r e g io n , b u t t h e of w e ste rn p rin c ip a lly of D e p a rtm e n t of h a v e a ffe c te d g ro s s in c o m e in th e fir r e g io n to are reg io n O v e r h alf of th e th a t reg io n th e refo re v ie w a b so lu te W a sh in g to n lu m b e r se c tio n s of th e h as in in an d p ric e th e ir a n tic ip a tio n a w id e sp re a d in c reases. R e ta il in v e n to rie s of fu rth e r of e x p e c ta tio n y ard s also fin ish e d ad v an ces in of re lu m b e r th e p ric e o f lu m b e r. A t th e s a m e tim e , m ill p ric e s w e re a d tw e e n v an ced lo g g in g o n re ta ile rs. d e r th e th e b a sis of th e in c re a s e d sale s to A n tic ip a tio n of h ig h e r la b o r c o sts u n P r e s i d e n t ’s R e e m p lo y m e n t A g re e m e n t on tw e e n an d p ric es, m o s t o f w h ic h w ere sin ce 1930, w e re in m u m lu m b e r used code a t th e h ig h e s t le v e l d e te rm in in g p ric e s th e o p e ra tiv e m in i after N o v e m b e r 22, 1933. In co m e fro m 1934, y e a r also im p ro v e m e n t m ill sto c k s th a t th e cau sed in an d sa tisfa c to ry th a n w as th e th e re la tio n sh ip b y a strik e of I t w ill b e se e n m a rk ed b y re la tio n sh ip v o lu m e la te in of b u sin e ss, 1935 w a s a t a n y tim e sin c e a b e 1929. m o re M o re o v e r , it is i n d i c a t e d t h a t m ill p r ic e s d u r i n g 1935 as th a n a w h o le av erag ed 50 p ercen t h ig h e r d u r in g 1932. A v e r a g e m ill p ric e s, w h ic h d ro p p e d re c e iv e d lu m b e r A u g u st m illin g e m p lo y e e s. C h a rt 3 th a t th e v an c es d u rin g th e seco n d O c to b e r an d an d d istin c t a n d th e lu m b e r c o d e a lso c o n trib u te d to p ric e a d h alf of 1933. M ay b y sa le s th e D o u g la s c o n tin u e d n o tw ith sta n d in g th e to fir i n d u s t r y ex p an d fact th a t d u rin g sh ip m e n ts q u ite sh a rp ly p ro v isio n s after w ere th e m in im u m te rm in a te d a t th e code en d of p ric e 1934, PER CENT w e re a b o u t 9 p e rc e n t lo w e r in 1934 th a n in 1933. T h i s d e c lin e in s h ip m e n ts w a s p a r t ly a r e s u lt o f a se rio u s in te rru p tio n cau sed b y a strik e of lo n g s h o r e m e n o n th e P a c ific C o a s t in M a y , J u n e , an d Ju ly of th e 1934 av e ra g ed $ 2 .6 8 h ig h e r th a n of p ric e s of q u o ta tio n s h alf of in M arch an d th e W h ile b er w ere d u rin g feet, o r h ig h av erag e in 1933. w as p re v a ile d becau se b elo w fir m i lls m ill th e fro m for fro m p ric e s le v e ls a lu m b e r w e ll in c re a se of lo w v o lu m e of in d u stry . a tta in e d in T h e d e sp ite a d u rin g th e 32 a t 4 .7 p ercen t 1932, of re in c re a s e u sers. b illio n o v er reflect c o n su m p tio n h ig h L U M B E R S H IP M E N T S A N D IN V E N T O R IE S D ouglas fir region T otal m onthly shipm ents, adjusted fo r seasonal variation. Total mill inventory at end o f m onth, w ithout adjustm ent fo r seasonal variation (1929 averages= 100). 1935 u ltim a te e stim a te d ac tu a l Chart I I I an d te m p o ra ry su sta in e d b y an in c re a se sh arp lu m 1933 re p le n ish m e n t ad v an ce sh ip m e n ts, first after code d u rin g a an d feet, w as le v e l th e in in c o m e re c e iv e d fro m 1935 b u ild in g th e d e c lin e d m in im u m b o ard sta n tia l to d u rin g p ric e s T o tal ex trem ely T h e a ttrib u ta b le la rg e ly in m a in ly d em an d p ric e s b o ard D o u g la s in v e n to rie s, su lte d M ill a th o u sa n d la tte r p a rt o f 1934. re su lte d re ta il in y ear, b y e x p a n sio n y ear. w h ic h th e g a in sa le s 1934 1934 th e d u rin g la te r $ 1 7 .2 3 a in th e su b th e le v el o f s h ip m e n ts se rio u s in te rru p tio n b e ad v an ced d u rin g th e first te n m o n th s of 1935 a n d in O c to b e r, th e la te s t m o n t h fo r w h ic h p ric e d ata are a v a ila b le , re a c h e d o v e r fiv e y e a r s . In v ie w p o sitio n m a rk e t, of in d e m a n d fir r e g i o n p an sio n th e th e an y fu rth e r for lu m b e r p ro d u c e d sh o u ld in g r o s s h i g h e s t p o in t in of th e c u rre n t fav o rab le re s u lt d ire c tly in c o m e. ex p a n sio n in th e D o u g la s in a f u r th e r e x
@FedFRASER