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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 r t to the F ed eral R eserv e B oa rd by JOHN PERRIN, Chairman o f the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. VI San Francisco, California, February 16, 1922 IC E S for most of the principal farm of this district have risen mater P Rproducts ially since the first of the year. Wheat, wool and all kinds of livestock benefited par ticularly, as did also the citrus fruits, but the latter at the expense of damage by killing frosts and winds estimated as high as 50 per cent of the anticipated crop. T h e M onth Commodities such as barley, rice and cotton which did not par ticipate in the general rise are nevertheless at prices comparing favorably with those of a year ago. Since a large part of last year’s crops is already out of the farmers’ hands, the recent rise in prices will not operate primarily to increase returns to producers. It is significant, how ever, in its bearing upon returns to be received from crops now in the ground. That the increased prices have, however, resulted in considerable marketing of products would appear from the condition reports of the 66 reporting member banks in the principal cities of the district. The decline in their loans and discounts between January 4th and February 8th was slightly over $60,000,000, or 6.9 per cent, and they reduced their borrowings from the Federal Reserve Bank to $21,000,000, a decline for the month of $12,600,000, or 37.4 per cent. Bills discounted by the Federal Reserve Bank for all member banks on Febru ary 8th ($57,508,000) were 11.9 per cent less in amount than they were on January 11th, and constitute a new low figure for the readjust ment period. The lumber industry of the district continued to improve during January, increases being registered in production, shipments and orders received, both as compared with the months of December and January, 1921. The cut of the largest lumber association in the district for the week ending February 11th (134 mills reporting) was only 11 per cent below normal. No. 2 The export movement of Douglas Fir during 1921 (455,233,000 feet) exceeded by 5,000,000 feet the exports of 1920. In the mining industry the noteworthy development was announcement of decisions to resume opera tions by five of the principal copper companies of Arizona which have been closed since May, 1921. Their resumption will mean that seven of the fifteen principal copper mines in this district will be in operation. Petroleum production in California, although decreasing 3 per cent in January, compared with December, 1921, still outruns consump tion and stocks are now at the peak (since the low point of December, 1920) of 36,000,000 barrels. Employment conditions during January were practically unchanged as compared with D e cember with much unemployment in mining centers, metal trades, at the shipyards, and among unskilled workers. Real improvement is anticipated with the resumption of farm work and other out-door labor in the spring. In the field of commerce and trade improve ment is apparent in the returns covering the movement of exports and imports through the principal ports of the district during the last six months of 1921. Both imports and exports in the month of December, 1921, exceeded in value those of December, 1920, the former by 154 per cent and the latter by 1 per cent. The greatest improvement is reported in the trade with Japan and the United Kingdom. Retail trade as reflected in reports from 33 depart ment stores in the leading cities of the district continues to exceed in volume that of a year ago. The decline in value of total January sales of these department stores, when com pared with January, 1921, was only 6.3 per cent whereas these stores report average price declines during the period considerably in excess of this percentage. The improvement T h o s e d e s i r i n g th is r e p o r t s e n t t h e m r e g u la r ly w ill r e c e iv e it w it h o u t c h a r g e u p o n a p p l ic a t io n Agricultural and Business Conditions 20 in the wholesale trade which began to be apparent in October, 1921, continues. Of the 10 reporting lines of business, 3 report the value of their sales during January, 1922, in excess of those of January, 1921. Six of the seven remaining lines report a percentage of decline in the dollar value of their January sales which is appreciably less than the per centage of decline reported in the prices of their goods during the year. Building activity in the district has again reached record proportions, exceeding by $13,900,000, or 155 per cent, the value of operations reported for January, 1921. Of the 20 cities reporting, 14 advise a larger number of permits issued during January, 1922, than during January, 1921. Business failures during January, following the national trend, were larger in number than for any month within recent years. The volume of business being done throughout the district generally as measured by debits to individual accounts for January continues larger than it was a year ago. The value of these debits during January, 1922, in 20 principal cities was about 8.3 per cent less than it was in January, 1921, as com pared with a decline of 21 per cent in wholesale prices and slightly less than this figure in retail prices during the same period. The movement of grain from this district thus far during the present cereal year (19211922) has been unusually heavy. In response to a strong export demand, a large Grains part of the crop of wheat and barley was sold immediately following the harvest, and the domestic demand, although light, has been steady. During the past three months, export movement has declined but a moderate domestic demand has continued. On February 1, 1922, commercial factors estimated that the total available supplies of wheat in the Pacific Northwest were approximately 35.000.000 bushels (out of a total 1921 crop of 106,058,000 bushels), as compared with 25,000,000 bushels available on February 1, 1921 (out of a total 1920 crop of 88,692,000 bushels). The available surplus of wheat (above local needs) to meet export and domestic demand during the remainder of the cereal year (to July 1, 1922) is estimated to be between 25.000.000 and 30,000,000 bushels. There has been little export demand for California barley during the past three months, but the heavy exports during July, August and September of 1921, and the steady domestic consumption since then, have reduced the available supply of barley in this state to approximately 190,000 tons (9,030,000 bush els), as estimated by commercial factors on February 1, 1922. On this date a year previous, holdings of barley in California were estimated at 338,000 tons (15,984,000 bushels). The 1921 yield of barley in California amounted to 707,000 tons, compared with 685,000 tons produced in 1920. In spite of dull export demand during the past three months, total exports of wheat and barley from Pacific Coast ports during the present cereal year to date are considerably higher than during the same period of the previous season, as shown by the follow ing tables: ^Exports of Wheat from the Pacific Northwest July 1, 1921 to July 1, 1920 to Percentage InFeb. 1, 1922 Feb. 1, 1921 crease 1921-22 (bushels) (bushels) over 1920-21 Portland ........32,604,286 Puget Sound. . 14,863,925 Total ......... 47,468,211 18,929,386 9,686,870 72.2 52.8 28,616,256 65.8 *(Includes flour estimated on wheat content. ) July 1, 1921 to Feb. 1, 1922 (tons) 294,829 Exports of Barley from San Francisco July 1, 1920 to Feb. 1, 1921 (tons) 154,408 Percentage In crease 1921-22 over 1920-21 90.9 The rise of wheat prices in eastern market ing centers (from $1.14^ per bushel on January 3rd to $1.42% on February 15th, for May wrheat in the Chicago market), said to be due to a close adjustment between demand and supply in world wheat markets and reports of the poor condition of the forthcom ing crop in the United States, has been accompanied by considerable buying activity and advancing prices on wheat and flour in the Pacific North west since February 1st. Milling wheat in that portion of the district is reported to be selling at approximately $1.20 per bushel now, as compared with $1.55 per bushel a year ago. In California, No. 1 hard wheat sold at $1.90 to $1.95 per 100 pounds ($1.14 to $1.17 per bushel) on January 4, 1922. On February 15th the same grade of wheat was quoted at $2.15 to $2.25 per 100 pounds ($1.29 to $1.35 per bushel) as compared with prices of $2.70 to $2.80 per 100 pounds ($1.62 to $1.68 per bushel) on the same date a year previous. Shipping barley is reported to be selling in the local markets at $1.20 per 100 pounds, as com pared with $1.35 per 100 pounds one year ago. Reduction in the output of flour mills of the district noted in the last quarter of 1921 continued through the month of January. Production of 67 reporting mills M illing during this month was 48.7 per cent of capacity compared with 55.9 per cent in December, 1921, and 40.3 per cent in January, 1921. Declining production was most noticeable in W ashington, and, to a lesser Federal Reserve Bank of San Francisco 21 extent, in Oregon. California mills increased their production during the month. Millers in all parts of the district report an improvement in the domestic demand for flour during the present year. The export demand has been limited, except in California where a normal volume of foreign business has been contracted. Flour prices have recently ad vanced follow ing the rise in wheat prices (20 to 25 cents per bushel since the first of the year). Although millers are reported to have been active purchasers of wheat, their holdings at the close of January (2,099,552 bushels) were less than at the beginning of the month and approximately the same as one year ago (2,071,231 bushels). Stocks of flour held by the same millers on February 1st were 448,205 barrels compared with 475,733 barrels held on the same date a year ago. Production of 67 reporting flour mills during January, 1922, and December, 1921, and the percentages of mill capacity in operation dur ing those months and January, 1921, are shown in table “ A .” The prospective yield of citrus fruits in California was materially reduced by damag ing winds and killing frosts which occurred in Southern California and the Southern Citrus San Joaquin Valley during January. Fruits Although the extent of the frost dam age cannot be estimated accurately as yet, officials of the California Fruit Growers’ Exchange think that 50 per cent of the estimated orange crop of the state has been made unmer chantable, and that the damage to the lemon crop (which can be calculated more closely) will reach 3 3 ^ per cent of the previously estimated yield. If these figures are correct, carlot shipments of citrus fruits from Califor nia during the 1921-1922 season will approxi mate 27,000 cars of oranges and 9500 cars of lemons, as compared with former estimates of 52,300 cars of oranges and 14,700 cars of lemons. Last season (1920-21) 45,236 cars of oranges and 11,659 cars of lemons were shipped from California. ( A ) M illin g ^ No. Mills Reporting Jan., 1922 Dec., 1921 California ..............10 Idaho ..................... ,5 Oregon .................. 25 W ashington ..........27 9 5 22 25 District .................. 67 61 Jan., 1922 (barrels) 217,713 13,536 146,920 333,123 711,292 Later figures may substantially change present estimates of the amount of damage caused. Losses varied widely depending upon locality, the situation of groves in a locality, and the frost protection provided in individual groves. Oranges suffered more severely than lemons, as the latter are generally planted in more favored situations and better protected from frost by smudge-fire devices or orchard heating plants. It is reported that from 25 to 30 per cent of the total crop of navel oranges had been picked, and either stored or shipped, before the freeze of January 19th, as harvesting of that crop wras practically completed in the Central and Northern districts of California, and well under way in Southern California. Carlot shipments of oranges and lemons during this season to January 29th, compared with the same period last season are as follow s: Nov. 1, 1921 to Jan. 29, 1922 (carloads) 8,952 Oranges ................... . Lemons ............................ 1,487 Nov. 1, 1920 to Jan. 30, 1921 Total Citrus Fruits. . . . . 10,439 (carloads) 8,801 1,405 10,206 The marked reduction in the prospective supply of citrus fruits has caused a rapid advance in prices of both oranges and lemons. In the Los Angeles market, lemons which were selling at $1.25 and $1.50 per box (loose) on January 19th, advanced within a week to $2.00 and $2.50 per box, and special brands of navel oranges advanced during the same period from $3.75 and $4.00 per box to $5.00 and $5.50 per box. A year ago similar grades of lemons sold for $ .75 and $1.25 per box and special brands of navel oranges sold for $3.00 and $3.75 per box. The California Fruit Growers’ Exchange reports that the average price to growers (f. o. b. packing house), dur ing January, 1922, was $3.04 per box for oranges and $3.22 per box for lemons, as com pared with average prices during January, 1921, of $2.64 per box for oranges and $2.11 per box for lemons. The influenza epidemic Output------------------ Per Gent Mill Capacity in Operation Dec., 1921 January December (barrels) 1922 1921 215,314 15,726 157,963 386,136 775,139 52.4 48.5 45.3 48.2 48.7 50.8 44.4 50.8 57.2 55.9 January 1921 50.5 42.0 40.2 32.1 40.3 Agricultural and Business Conditions 22 cold weather retarded the growth of feed on the ranges and was unfavorable for early lambing. Livestock reports from seven of the principal markets of the district during January (table “ B ” ) show that receipts of cattle were ap proximately the same as during the corre sponding month last year, but 41 per cent in excess of receipts during December, 1921. Receipts of sheep and hogs at these markets continue to be large, showing gains over the previous month, and an increase of 33 and 51 per cent respectively over receipts during January, 1921. The range of weekly average top prices in the principal markets of the district during January (as presented in table “ C” ) shows slight advances in the prices of steers, cows, and calves, in some of the markets, and a material advance in the prices of hogs and lambs in all markets. Rising prices for live stock in this district are attributed to the generally depleted condition of herds and flocks and to the seasonal shortage usual at this time of the year. Comparison of the range in average top prices of livestock at the principal markets of this district during January, 1922, with Janu ary, 1921, follow s: is reported to have increased the demand for lemons, and to have been an additional factor in causing price advances on that fruit. Livestock and range conditions were un favorably affected by unusually cold weather over the entire district during the month of January. A t the present time a Livestock snow layer of varying depths covers most of the winter ranges of the district, including the mountainous sec tions of Northern California. On the ranges o f Northern Arizona, Utah, and Idaho, the THOUSANDS T H O U SA N D S ---- -- 1360 — -----------------------340 -----------------------320 -----------------------300 -----------------------280 -----------------------260 ---------- 240 ----------220 -----------------------200 -----------------------180 ----------------- |60 --------------- 120 --------------- 100 ------------------------------------eo --------------------------60 --------------------------40 --------------------------20 I 1.2 3 4 5 € 1I 8 I IQ I H 112 I ° i2___________ 9 Receipts of Livestock at Seven of the Principal Markets of the District 1921-1922. (Ogden, Portland, Salt Lake City, San Francisco, Seattle, Spokane and Tacoma included) January, 1922 (range) Fat Steers ................... $6.00—$ 7.50 Cows ............................. 4.50— 6.00 Calves ........................... 7.00— 10.00 Hogs ............................. 6.75— 10.00 Lambs ......................... 7.50— 9.75 continuous cold weather necessitated con siderable feeding, and some shrinkage in live stock is reported, losses being about normal for this season of the year. In California, the January, 1921 (range) $ 8.00— $ 9.25 6.50— 7.50 11.00— 13.00 10.50— 11.00 9.00— 10.50 ( B ) R e c e ip ts o f L iv e s to c k — Cattle Jan., Jan., 1921 1922 Calves Jan., Jan., 1921 1922 Hogs Sheep Jan., 1922 Jan., 1921 Jan., 1922 Jan., 1921 Horses and Mules Jan., Jan., 1921 1922 Ogden ................ 8,620 Portland ............. 11,549 Salt Lake C ity... . 7,231 San Francisco .. .18,496 Seattle ................ 4,375 Spokane ............. 3,286 Tacoma .............. 2,544 15,285 11,217 4,677 16,654 4,526 2,672 2,852 251 637 25 4,028 76 346 82 85 1,043 82 4,082 214 93 257 38,788 21,961 28,496 45,685 20,007 5,471 7,995 26,919 16,018 5,528 31,076 21,756 4,195 5,576 38,379 17,210 28,006 84,570 6,564 1,217 3,672 10,726 14,626 30,355 67,601 5,684 1,396 3,988 93 117 108 201 76 128 40 1 61 115 Twelfth District .56,101 57,883 5,445 5,856 168,403 111,068 179,618 134,376 359 581 (C ) R a n g e i n L iv e sto c k P r ic e s — Highest and Lowest Average Top Prices Per Hundredweight Received at Above Markets During January. Week of Fat Steers January 2 ............. $6.00— 7.50 January 9 ............. 6.25— 7.25 January 16.............. 6.50— 7.25 January 23............. 6.50— 7.25 January 30.............. 6.50— 7.25 Cows $4.50-6.00 4.75— 6.00 5.00— 6.00 5.00— 6.00 5.00— 6.00 CalvesHogs Lambs $7.00— 9.50 $6.75— 9.00 $7.50— 9.00 7.00— 9.507.10— 9.00 8.50— 9.00 7.00— 9.507.50— 9.12 9.00— 9.50 7.00— 10.008.10— 9.50 9.00—9.75 7.00— 10.008.75— 10.00 9.25—9.75 23 Federal Reserve Bank of San Francisco A t the present time little or no w ool is held by growers in this district. Between 75 and 80 per cent of the 1921 w ool clip and carry over (it is estimated that three-fourths of the 1920 clip of 85,517,000 pounds was carried over into the spring of 1921) was sold between June 1st and November 1, 1921, at prices ranging from 9 to 20 cents per pound, according to the grade of w ool and locality where grown. Since November, wool prices have advanced steadily, with a sharp upward turn since the last week in January, and buying has been increasingly active. A t the present time, w ool buyers are z .£B A L\ N C EI < n Ia I M P ) R T )tQ O T H E R < )O / .' T S A r S g o W E I . F T H B U R I C T D I S T i— -i J_ _i_ i ; B.: ÜÜ I! ■I I I IS MILLIONS OF POUNDS MILLIONS OF POUNDS 900 800 700 600 900 P R O U N IT)IN An increase in the number of milk cows in every state in the district, small decreases in the total number of beef cattle and hogs, and a decline of 10.1 per cent in the Livestock number of sheep are shown in reStatistics cently published estimates by the Department of Agriculture of the number of livestock on farms and ranges on January 1, 1922, compared with January 1, 1921, and 1920. (Presented by states in table “ D .” ) The increase in the number of dairy animals is the expected result of the demonstrated stability of the dairy industry during the past tw o years and of the prospect of increased profits opened up by declining costs of labor and feed. The decline in the number of beef cattle and sheep is more the result of condi tions in the years immediately preceding 1921 than in the past year. The burden of unliqui dated financial obligations contracted in 1920 and before, prevented many livestock men from taking advantage of low prices for stocker animals and feed and of favorable range condi tions, and restocking of herds did not progress as might have been expected. Further decline in the number of swine is noteworthy at a time when increasing numbers of hogs are being shipped into the district from middle western states. Sheep on the ranges and farms of the district are reported to be in good condition with fleeces well grown and high in quality. No official estimate of the forthcom ing clip W o o l has been made but commercial factors believe that it will be less than last year when 76,997,000 pounds of w ool were produced. They base their estimates on the smaller number of sheep to be sheared this spring. The United States Department of Agriculture reports 11,670,000 sheep on the farms and ranges of the district this year compared with 12,203,000 one year ago. z> Z1 a i 1S11 -r 1 700 ”J | 500 400 300 200 '4 §§ M 3 m 1 1 1 : É 300 m P 500 400 1 m 600 *! i Ää 1 1 800 8 200 iL^Î 1 100 Production of Wool in the Twelfth Federal Reserve District and the United States and Total Consumption of Wool in the United States, 1910-1921 (D ) L iv e s to c k o n F a r m s a n d R a n g e s f — Arizona ............... California .......... Idaho ................... Nevada ............... Oregon .............. Utah .................... Washington . . . . 1922 40 632 15 3 19 216 87 286 Milk Cows* (January 1st) 1921 1920 35 39 620 614 146 143 18 17 212 216 82 81 278 290 Other Cattle* (January 1st) 1922 1921 1920 1,000 1,380 521 346 604 433 256 Sheep* (January 1st) 1922 1921 1920 1,100 1,000 1,100 1,380 543 343 616 425 269 1,200 1,394 562 340 635 425 283 1,200 2,450 2,361 1,190 1,823 2,250 500 2,500 2,623 2,500 2,914 1,180 2,250 2,245 624 1,100 2,200 2,025 555 1922 53 834 196 25 233 90 212 Swine* (January 1st) 1921 48 828 206 25 240 90 236 1920 50 909 240 27 267 90 265 1,433 1,391 1,400 4,540 4,676 4,639 11,674 12,203 12,913 1,643 1,663 1,918 United States ...2 4 ,208 23,594 23 ,722 41,324 41,993 43,398 36,048 37,452 39,025 56,996 56,097 59,344 5.9 5.8 10.9 11.0 10.6 32.0 32.0 33.0 2.8 2.9 3.2 12th District .... Per Cent District to United States 5.9 f Estimated by U. S. Department of Agriculture. *000 Omitted. 24 Agricultural and Business Conditions offering from 17 to 33 cents per pound for various small holdings in the grow ers’ hands. Since January 1st, buyers in the field have been actively contracting for 1922 clip wool. Approximately 50 per cent of the new clip in Utah and Nevada is reported to have been contracted for at prices ranging from 23 to as high as 33 cents per pound. California growers state that about 10 per cent of the clip has been contracted for at prices ranging from 26 to 30 cents per pound for fine wool. W ashing ton, Oregon and Arizona w ool growers report many offers, but little contracting as yet. Many growers appear to find it necessary to contract their clip in advance of shearing, in order to secure funds to meet expenses incident to collecting the clip. The market position of w ool at the present time is reported to be strong. The accompany ing chart of w ool consumption in the United States from 1910 to 1921 (see preceding page) indicates that the trend in this country has been toward increased consumption and de creased production of w ool, with a corresponding growth in consumption of imported wools. The emergency tariff rates have operated prac tically to exclude imports of foreign wools, excepting the lowest grades. W ith the near approach of increased butter production incident to the spring season, hold ings of cold storage butter at the four principal markets of this district are being Dairy steadily reduced, net withdrawals Products during January amounting to 129,950 pounds as compared with 112,991 pounds during December and 363,913 pounds withdrawn from storage during Janu ary, 1921. Holdings of cold storage butter at these markets on February 1st were reported to be 622,960 pounds, compared with 1,304,865 pounds held in storage a year ago, a decrease of 681,905 pounds, or 52 per cent. A statement of the movement and holdings of cold storage butter in this district is presented in table “ E.” Butter prices in the San Francisco market have fluctuated during the past month, result ing in an unusual spread between the prices of finer grades of butter (which have ad vanced) and lower grades, which have remained stationary, due to the preference for low priced Australian butter over the medium and lower grades of local butter. The price of 93 score fresh creamery butter, which on January 14th was 34^4 cents, is now (February 16th) 44J4 cents. Prices received by milk producers in this district during January, table “ F ” (see opposite page), show that the average price per 100 pounds decreased 7 cents in the Mountain sec tion and 8 cents per pound in the Pacific section, as compared with December, and declined $0.75 and $0.87 in the Mountain and Pacific sections respectively, as compared with January, 1921. The trend of prices for the principal farm products of this district was definitely upward during January. Since a large part of last (E ) M o v e m e n t o f S to c k s o f C o ld S t o r a g e B u tter— Jan., 1922 Jan., 1921 Feb. 1, Net Net 1922 Withdrawals Withdrawals Holdings City Los Angeles .. Portland .......... San Francisco. Seattle ............ (pounds) 8,276 10,045 142,566 30,929* Totals .......... 129,958 (pounds) (pouDds) 287,044 169,403 42,552 13,241 148,607* 360,720 182,924 79,596 363,913 Feb. 1, 1921 Holdings (pounds) 188,880 226,146 615,596 274,243 622,960 1,304,865 *Net addition. ( G ) W h o le s a le P r ic e s — Commodity Native Beef Cattle..W eekly average price at Chicago Sheep ....................... W eekly average price at C hicago......... Lambs ...................... W eekly average price at Chicago......... H o g s ......................... W eekly average price at Chicago......... Wheat . . . . Chicago contract prices for May wheat............ Barley ....S h ip p in g Barley F . O . B. San Francisco.......... Rice ..........California Fancy Japan at San Francisco......... Cotton . ...M iddling Uplands— W eekly range of spot quo tations at New Orleans..................................... W ool ........Average of 98 quotations at B oston .................... Apples .. . .Extra fancy Winesaps at New Y o r k ................. Oranges ..N avels— Market pack at Los A ngeles............... Lemons ...L oose pack— at Los A ngeles............................... Prunes __ Size 40-50— Minimum price at New Y o rk ......... Raisins . , .Standard loose Muscatels at New Y o r k ........... Apricots ...C h oice in 25-lb. boxes F. O. B. California........ Butter .......92 Score at San F rancisco...................................... Eggs .........Extras— San F rancisco........................................... Unit Feb. 4.1922 One Month Ago One Year Ago 100 lbs. 100 lbs. 100 lbs. 100 lbs. bushel cental cental $7.25 6.95 13.25 9.05 1.29-1.325^ 1.30-1.40 4.97^ $7.00 5.10 11.50 7.30 1.08^-1.11^ 1.35 -1.45 5.25 $7.70 4.25 9.35 9.45 1.51^-1.56^ 1.40 -1.45 4.85 lb. lb. box box box lb. lb. lb. lb. dozen .15- .15^ .5471 3.55-3.90 2.50-4.00 2.00-2.50 .17K - .1734 .4738 3.00 2.50-3.50 1.50 .13 .1634 . 2 2 / - .23 .32 .35 ■13J4- .14^ .4113 4.00-4.25 2.50-3.00 1.25-2.00 .1454 .24 .18 - .19 .1234 .1654 .2 3 ^ 2 - .24 .4234 .32*4 .42% ■27yi Federal Reserve Bank of San Francisco 25 year’s crops is already out of their hands, this does not necessarily increase returns to all farmers. It is significant chiefly in its bearing upon returns to be received from the Prices crops now planted. Marked advances in the prices of wheat, w ool and all kinds of livestock were recorded during the month of January and the strength continued during the early part of February. An ad vance in the price of oranges and lemons was stimulated by the reduction of the crop due to frost damage, and boxed apples shared in the resulting upward movement of fresh fruit prices. Dried fruit stocks have been greatly reduced by a steady domestic and foreign demand and present prices are firm. Barley, rice and cotton prices were all slightly lower at the beginning of February than at the first of the year, but present wholesale prices for these products compare favorably with those of one year ago. Changes in the prices of some of the prin cipal farm products of this district during the past month and the past year are shown in table “ G” (see opposite page). General conditions in the lumber industry improved during January as evidenced by an increase in production, shipments and orders both as compared with December, Lum ber 1921, and with January a year ago. January production of lumber, ac cording to reports received from three lumber associations, totaled 327,624,000 feet compared with 264,544,000 feet in the preceding four (F ) P r ic e s R e c e iv e d b y M i l k P r o d u c e r s *— Jan., 1922 Range Section! Mountain (5 M k ts.).. .$1.75-2.48 Pacific (10 M k ts.). . . . 1.90- 3.20 U. S. (94 M k ts.)........ 1.42- 6.78 Jan., Dec., Jan., 1922 1921 1921 Aver-AverAverage age age $2.13 2.50 2.50 $2.20 2.58 2.58 $2.88 3.37 3.25 *A11 prices per hundredweight for milk testing 3.5 per cent butter fat. fMountain Section includes Idaho, Utah, Nevada and Arizona. Pacific Section includes Wàshington, Oregon and California. West Coast Lumbermen’s Association (H ) L u m b e r f — Average No. of Mills reporting Cut* .............................. Shipments* ................. Orders* ....................... Unfilled O r d e r s * ........ 132 291,745 268,327 254,245 929,695 CaliforniaWhite and Sugar Pine Manufacturers* Association Western Pine Manufacturers' Association r Jan. 28, 1922 weeks, an increase of 23.7 per cent during the month. Compared with January, 1921, when 152.110.000 feet were cut, there was an increase of 175,514,000 feet or 115.3 per cent. Present cut is approximately 80 per cent of normal production for the reporting mills. Orders received during the month totaled 343,565,000 feet compared with 291,630,000 feet in Decem ber and 178,614,000 feet in January a year ago. The January orders exceeded the January cut by 4.8 per cent. Shipments increased from 270.724.000 feet in December to 345,249,000 feet in January and were 5.3 per cent above the actual production, continuing the reduction in stocks which has been in progress since last November. Figures available for two lumber associations show that unfilled orders at the close of January, 1922, totaled 994,945,000 feet compared with 1,140,370,000 feet on December 31, 1921, and 574,392,000 feet on January 31, 1921. L ogging production during January was re ported to be approximately 50 per cent of nor mal. Severe weather conditions have forced many camps to suspend operations during the past three months. The domestic lumber market continued mod erately strong in January, although the heavy buying predicted for the early part of 1922 has not yet materialized. Douglas fir, California redwood, and spruce lumber moved into trade channels in good volume. In the foreign trade the Japanese demand decreased, but a consid erable amount of new business was placed with China and Australia. Figures recently com piled show that exports of Douglas fir during 1921 totaled 455,233,000 feet compared with 451.223.000 feet exported in 1920. O f the 1921 exports 244,556,000 feet were shipped to Japan, 94.957.000 feet to China, 44,788,000 feet to Peru and the remainder in smaller lots to miscel laneous countries. Comparative figures of cut, orders, unfilled orders, and shipments for the reporting mills of the three associations in this district are shown in table “ H .” Dec. 31, 1921 Jan. 28, 1922 101 228,652 198,076 225,160 1,081,945 45 32,878 67,055 81,650 65,250 ------Four Weeks Ending-----Dec. 31, Jan. 28, 1921 1922 42 32,283 59,298 58,025 58,245 5 3,001 9,867 7,670 tNo report received from California Redwood Association since December 17, 1921. *In thousands of feet. Dec. 31, 1921 5 3,609 13,350 8,445 Jan. 28, 1922 182 327,624 345,249 343,565 994,945 Dec. 31, 1921 148 264,544 270,724 291,630 1,140,370 Agricultural and Business Conditions 26 Preliminary arrangements for resumption of production by several large copper mining companies in the district were the outstanding development in the mining situation M ining during the month. In Arizona preparations are being made to re open five large copper mines which have been closed since May, 1921. W hen these proper ties begin producing, seven of the 15 principal copper mines in the Tw elfth Federal Reserve District will be in operation. Buyers of copper have lately been reported inactive partly because they had purchased quantities of copper in the last quarter in 1921 for delivery in 1922, and partly because they desire to see the effect of increased production upon prices, in view of the fact that stocks of copper are already large. The price of electrolytic copper declined from the December peak of 14 cents per pound (N ew York delivery) to 13% cents on February 10th. Aside from the activity in the copper mines, there has been little change in the general mining situation during the month. Reports received from 14 of the largest mines in the district show a decreased pro duction of gold, silver and lead and an in crease in the production of copper in Decem ber, 1921, compared with November, 1921. Compared with December, 1920, the same mines report decreases in gold, lead and copper production and an increased output of silver. The 14 reporting gold, silver and lead mines are operating at 100 per cent of capacity, and reporting copper mines at approximately 66 per cent of capacity. Comparative figures of the output of metal of the reporting mines during December, 1921, November, 1921, and December, 1920, are shown in the following t a b le : Dec>t 19 2 1 26,072 Gold (o z .)............ Silver ( o z .) .......... 662,513 Lead (lb s .)..........8,588,314 Copper (lb s .). . . . 6,748,041 Nov., 1921 29,846 730,724 10,502,167 6,120,000 Dec., 1920 34,597 656,325 10,488,733 7,052,771 Average daily production of petroleum in California during January was 315,755 barrels, a decrease of 9,723 barrels a day, compared with December, and of 15,431 barrels a day compared with January a year ago. Consump tion which has continued at approximately the (I) Petroleum— same level during the past three months, was less than the January production, average daily shipments during the month being 278,251 barrels, or 37,504 barrels less than Petroleum the average daily production. The resultant increase in stored stocks carried the holdings of California oil companies to 36,184,527 barrels, the highest figures which have been reported to this bank. Fifty-nine new wells with an initial daily production of 11,210 barrels were completed during January and seven wells abandoned, a net increase of 52 producing wells during the month. Statistics on oilfield operations as furnished by the Standard Oil Company of California are shown in table “ I.” Reports from 14 of the principal electric power companies in the district show an in crease in sales of power for industrial purposes in December, 1921, as compared writh Electric December, 1920, in California, little Energy or no change in the Pacific North west (Idaho, Oregon and W ashing ton) and a marked decrease in the Intermoun tain states (Arizona, Utah and Nevada). Compared with November, 1921, there was a decline in sales in all states, chiefly due to seasonal diminution in the needs of agricul tural consumers. Figures on industrial sales of California power companies are now available for a period of several months. Segregated by prin cipal consuming industries they show the extent of seasonal changes in demand in agri cultural sections, a gradual but steady im provement in sales to the mining industry, and a similar trend (except through the period of the oil workers’ strike in the San Joaquin Valley oil fields) in sales to the oil producing industry. Comparative figures on total power sales to these industries during the last six months of 1921 follow : July ........... August September . October .. . November . December , Agriculture K.W . H. Oil Production K.W . H. Mining K.W . H . 67,450,199 71,813,483 62,381,265 36,828,765 22,307,820 14,208,172 6,458,377 6,726,541 5,957,184 3,762,141 5,015,756 6,947,954 10,045,719 11,198,406 11,528,174 11,780,666 11,313,107 12,095,172 January, 1922 December, 1921 315,755 bbls. Production (daily average)................... Shipments (daily average)..................... 278,251 bbls. Stored Stocks (end of m on th )................36,184,527 bbls. New W ells Opened................................... 59 11,210 bbls. With Daily Production........................ W ells Abandoned .................................... 7 325,478 bbls. 275,944 bbls. 35,021,912 bbls. 45 16,160 bbls. 1 January, 1921 331,186 319,769 22,594,190 64 29,852 5 bbls. bbls. bbls. bbls. Federal Reserve Bank of San Francisco 27 Statistics on production and industrial sales of electric energy in this district, as furnished by 14 reporting power companies, are pre sented in table “ J.” Employment conditions in this district were practically unchanged during the past month. In the manufacturing industries employment increased slightly during January acLabor cording to the monthly report of the United States Employment Service. Figures available for four cities in this dis trict show the follow ing changes : ^Numerical increase in employment during January, 1922, compared with December, 1921 Percentage increase in employment during January, 1922, compared with December, 1921 345 341 926 62 1.5 4.6 14.8 3.1 Los A ngeles.. Portland ........ San Francisco Seattle ............ M uch unemployment still exists at mining centers, in the metal trades, at the shipyards, and among unskilled workers of all kinds. In several sections of the district, some industries are working on a part time basis. In Cali fornia, Oregon and W ashington, although the number of unemployed is still reported to be above normal, there has been improvement in the outlook. Increased activity in lumbering and other industries is now absorbing many men whose employment terminated with the cessation of various operations dependent on the seasons. Little real improvement can be hoped for until the resumption of farm work and other outdoor labor in the spring. In Arizona, Nevada, Idaho and Utah there has been an increase in mining activity, especially in the copper mining districts, and unemploy ment there has been relieved to some extent. The total number of unemployed remains ap proximately the same, however, as railroad and construction work are reported to have been materially curtailed. During January, 33 department stores re ported total net sales 6.3 per cent less in value than they were in January, 1921. That the per centage of this decline is less than the Retail percentage of decline in retail prices Trade during the past year (estimated by these stores to average in excess of 20 per cent), and that the total number of indi vidual sales transactions (as reported by nine stores that keep such records) was approxi mately the same in January, 1922, as in Janu ary, 1921, indicates that the physical volume of merchandise sold during the month was greater than it was one year ago. The month of January also marked the usual seasonal de cline in volume of retail trade, and the sales of these representative department stores averaged 43.5 per cent less in value than in D e cember, 1921. The amount of the average sale (cash, charge and C. O. D.) reported by 10 stores was $2.39 in January, 1922, compared with $2.18 in D e cember, 1921, and $2.70 in January, 1921. Fol lowing is a statement of the average sale (cash, charge and C. O. D.) in Los Angeles, Salt Lake City, San Francisco and Seattle. Jan., 1922 Dec., 1921 $2.80 1.80 3.12 . 1.80 $2.72 1.84 2.67 1.63 $3.14 , .$2.39 $2.18 $2.70 Jan., 1921 . . . 1.98 Stocks on hand at the close of January were 3.4 per cent greater in value than at close of January a year ago, but were 5.5 per cent less (J) Electric Power — (1) Production— Plant Dec., 1921 California (7 companies reporting) ................. 912,975 Pacific Northwest (4 companies reporting) 224,870* Intermountain States (3 companies reporting) 153,957* Capacity K. W . Nov., Dec., 1921 1920 730,465 912,975 95,230* 87,995* 79,332,716 76,815,500 75,667,046 153,957* 73,710* 61,542* 94,871* 29,300,745 27,485,637 42,686,778 Twelfth District (14 com panies reporting) . . . 1,291,802* 1,291,802* 1,085,167* 809,385* 783,378* 749,384* 374,291,199 367,292,184 371,157,803 California ...................... Pacific Northwest . . . . Intermountain States.. Twelfth ________ District 153,957* 200,745* Plant Output K. W . H . Dec., Nov., Dec., 1921 1921 1920 265,656,738 262,991,047 252,803,979 94,453* (2) Sales— 224,870* Peakload K. W . Dec., Nov., Dec., 1921 1921 1920 641,222* 566,518* 625,766* Number of Industrial Consumers Dec., Nov., Dec., 1920 1921 1921 38,230* 41,178* 41,344* 15,942* 14,739 15,696 7,145* 7,510* 6,298* 64,019* 64,796* 59,267* Connected Industrial Load H . P. Dec., Nov., Dec., 1921 1921 1920 1,268,153* 1,223,336* 1,152,910* 238,493* 232,940* .. t 230,027* 220,921* .. t Industrial Sales K. W . H . Dec., Nov., Dec., 1921 1921 1920 135,644,254 148,870,244 121,547,077 24,769,347 31,005,891'* 25,594,228 17,666,466 18,683,257 32,628,488 1,731,120* l,223,336f 1,612,324* 178,080,067 198,559,392* 179,769,793 *Not reported by all companies. Figures so marked are comparable under respective headings and dates, but not strictly accurate for comparison with other portions of the table. fNovember figures not available for Pacific Northwest and Intermountain States. Agricultural and Business Conditions 28 than the value of stocks on December 31, 1921. The percentage of outstanding orders at end of January, 1922, to the total purchases during the year 1921 were 8.9 per cent compared with 6.8 per cent in December. Collections were characterized by reporting firms as follow s: Excellent Number of Firms Good 1 11 Fair Poor 10 1 Statements of increases or decreases in the value of net sales of 33 representative depart ment stores and mail order houses during Janu ary, 1922, compared with December, 1921, and January, 1921, are shown in table “ K .” Reports received from 185 wholesale firms in 10 lines of business show that in January, for the third successive month, sales of dry goods and furniture were greater W holesale in value than in the corresponding Trade month a year ago, and that sales of shoes were greater in value for the second successive month. Although sales in the other seven reporting lines were less in dollar value than in January, 1921, there was a further diminution in the percentage of de crease, and, in all lines except agricultural im plements, the percentage of decline in value of sales was less than the percentage of decline of wholesale prices of the com m odity during the year period. The physical volume of busi ness at wholesale is, therefore, probably greater now than it was during January, 1921. The average net increases or decreases (— ) in the value of sales of each reporting line were as fo llo w s: January, 1922, compared with January, 1921 December, 1921 Agricultural Implements..........— 45.1 Automotive Supplies................. — 5.9 Automobile Tires ..................... — 11.6 Drugs ........................................... — .8 D ry G oods................................... 12.7 Furniture ..................................... 43.9 Groceries ..................................... — 1.9 Hardware ................................... — .7 S h o e s ............................................. 26.2 Stationery ................................... — 11.7 — 12.5 .3 — 36.2 — 9.4 15.6 —21.7 15.7 — 2.5 — 14.2 —20.7 Different lines of business and different firms in the same lines of business report vary ing trends in the volume of orders now being placed for spring and summer delivery. In the dry goods and automobile tire trade, the major ity of reports state that the volume of orders thus far received has been greater than last year, a fact which is attributed to the general belief that present prices are more stable than in January, 1921. In the other eight lines no definite tendency has been apparent, some firms reporting a greater and some a lesser volume of orders for spring and summer de livery. JANUARYPRICES1921■lOO^o-JANUARY1921SALES U.S.BUREAU0FLABORINDEX NO.WHOLESALEPRICES AGRICULTURAL IMPLEMENTS AUTOMOBILE SUPPLIES AUTOMOBILE TIRES DRUGS DRY GOODS FURNITURE GROCERIES HARDWARE SHOES STATIONERY 4-0 60 80 IOO 120 14-0 160 Dollar Value of Sales of Representative Wholesale Houses and General Wholesale Prices in January, 1922, Compared with January, 1921 Prices generally remained unchanged during January although wholesale grocers, hardware firms and stationery dealers reported some re ductions. Present prices average approxi mately 20 per cent below those of one year ago. Collections were characterized by reporting firms as fo llo w s: Excellent Number of Firms 4 Good Fair 40 80 Poor 31 ( K ) R e t a il T ra d e A c t iv it y — CONDITION OF RETAIL TRADE DURING JANUARY, 1922 In Federal Reserve District No. 12 (33 Stores Reporting) Percentage increase or decrease (— ) of net sales during Janu ary, 1922, compared with net sales during same month last year .................................................... Percentage increase or decrease (— ) of net sales during Janu ary, 1922, compared with net sales during December, 1921.......... Los Angeles Oakland Sacramento Salt Lake San City Francisco Seattle Spokane District — 2.5 — 15.3 — 4.6 — 19.9 — 4.9 — 11.8 — 14.7 — 6.3 — 52.8 — 52.0 — 51.0 — 44.1 — 54.8 — 56.3 — 43.5 * — 36.9 29 Federal Reserve Bank of San Francisco Statements of increases or decreases in the net sales of 185 reporting wholesale firms during January, 1922, compared with Janu ary, 1921, are shown in table “ L .” Although the foreign trade of the Pacific Coast in 1921 was less in value and in volume than in the peak year of 1920, the last six months of 1921 were months of Foreign improvement in both the import Com m erce and export fields. This is shown in the follow ing table of per centage comparisons of the value of foreign trade of this district in 1921 and 1920. Percentage increase or decrease (—) in value of Exports Imports Year 1921 compared with year 1920. — 40.1 — 52.4 First six months 1921 compared with first six months 1920....................... — 53.6 — 60.5 Last six months 1921 compared with last six months 1920....................... —22.0 —40.8 December, 1921, compared with De cember, 1920 ..................................... 1.07 154.6 Because of changes in the level of prices during the two years under discussion, it is difficult to draw accurate conclusions from figures of dollar values, but the above com parisons, supplemented by such figures on ton nage imports and exports as are available, indi cate that the volume of foreign trade on the Pacific Coast was increasing in the last quarter of 1921, and in the closing month of the year exceeded the figures for December, 1920. As would be expected in a district the major exports of which are agricultural products (harvested in the summer and fall), there was a steady increase in the volume of exports from July to October and a slight decrease in the last two months of the year. A considerable part of the large wheat crop of the Pacific Northwest found a market in Europe, particu larly in the United Kingdom. Barley, rice, cotton, dried fruits, canned fruits and canned salmon were active export commodities and the lumber trade showed a marked improve ment, Japan being the principal foreign buyer. The export trade in iron and steel manufac tures, canned milk and various minor items of commerce on this Coast was quiet. Import trade was practically stationary from July to November, but rose to the highest monthly figure of the year in December. Large increases in imports at San Francisco and Seattle were responsible for this gain. Raw materials from the Orient, Australasia, and Central and South America (including sugar, silk, coffee, tea, copra, rice, and w ool) and man ufactured goods from Europe (notably window glass from Belgium) continue to be the leading import commodities of the district. In general the ports of the district report an increased trade with the Orient and the United Kingdom during the last six months of the year and slight improvement in the direct trade with continental Europe. South American trade shows a decrease in exports and an in crease in imports. The increased trade not only of this district but the whole United States with the Orient is one of the striking changes which occurred in the distribution of our foreign trade during the war, and, although 1921 witnessed a tendency in the direction of the pre-war normal distribution of our imports, (L) W h o le sa le T ra d e — Percentage of increase or decrease (— ) in net sales during January, 1922, compared with January, 1921 Agricultural Number of re Implements porting firms .. 23 Los Angeles .. ,.. 13.0 Portland ........ — 53.5 Sacramento . . . Salt Lake City . . — 62.6 San Francisco. . .— 45.2 Seattle ............. Spokane ........... — 62.8 Tacoma ........... District ............ — 45.1 Auto Supplies 21 7.9 — 11.5 — 17.5 — 5.8 — 16.3 —27.5 — 5.9 Auto Tires Drugs 15 9 Dry Goods 12 63.0 31.2 6.2 2.3 43.9 — 11.6* Groceries 13 31 21 67.4 — 1.8 — .6 — 3.2 — 10.7 — .6 47.4 43.9 — 11.6 3.1 — 1.9 29.8 — 17.7 — 2.9 —22.9 — 7.4 — 5.6 — 16.9 1.2 — .7 26.2 60.6 — 12.9 8.5 74.1 — .8 12.7 ^District total includes sales of large distributors not reported by cities. Furniture Hardware Shoes 14 34.2 Stationery 26 — 8.6 — 4.3 21.1 19.5 — 18.3 —22.6 10.7 — 12.7 26.2 — 11.7 Agricultural and Business Conditions 30 Asia continued to gain as a field for our ex ports. The follow ing table shows the per centage of the total trade of the United States carried on with each major division of the world during the year ending June 30, 1914, and the calendar years 1920 and 1921: IMPORTS E u r o p e ................... North America. . .. South A m e r ic a .... Asia ....................... , Oceania ................. . . , Africa ................... . . , 1914 1920 1921 47.3 22.6 11.8 15.1 2.2 1.0 23.3 31.5 14.4 24.3 3.7 2.8 30.5 30.0 11.8 22.6 3.5 1.6 involved. Compared with January, 1921, the number of failures showed an increase of 50.0 per cent and the reported liabilities an increase of 114.6 per cent. Liabilities of the average failure in the dis trict amounted to $27,200 in January, 1922, compared with $25,340 in December, 1921, and $19,045 in January, 1921. ................. . . 100.0 100.0 , NC.C>F FAI t \ t 6 — \ Europe ................... North A m e r ic a .... South A m e rica .... Asia ....................... Oceania ................. Africa ................... Total 1 .. 62.8 . . . 22.4 . . . 5.3 . . . 4.8 . . . 3.5 . . 1.2 54.3 23.4 7.6 9.4 3.3 2.0 52.8 25.2 6.1 10.8 3.5 1.6 ................. . , 100.0 100.0 100.0 ---------ISO r \ ■'N V 2— \ / -Ur s ; V 4- — EXPORTS LURES / 7- 100.0 ftW ---------aoe a — 5— Total »10.OF LIAB ILITIES IN MILL.IONS - ---------100 f— :s/_ ---------so 1 2 ;3 A !5 6 isa i 7e :9 10 1! 12 1 2 Ì A- : !; ; 1925I 6 Business Failures, Twelfth Federal Reserve District, 1921-1922 R. G. Dun & Company’s comparative figures of the number and liabilities of busi ness failures in the states of this district during January, 1922, and December, 1921, follow : The usual seasonal increase in the number January, 1922 and liabilities of business failures occurred No. Liabilities in January, the totals being the highest of A riz o n a .................... 4 $ 52,300 which this bank has record. There California .............. 92 2,062,199 Business were 207 business failures with lia- Idaho ..................... 13 104,966 .. Failures bilities of $5,630,449 in January, Nevada ........................ 200,090 1922, compared with 201 Oregon failures................... 25 ....................... 18 298,834 with liabilities of $5,093,420 reported in Decem Utah 2,912,060 Washington .......... 55 ber, 1921, an increase of 2.9 per cent in num District ................207 $5,630,449 ber and 10.5 per cent in amount of liabilities December, 1921 No. Liabilities 6 79 9 3 41 12 51 201 $ 112,000 1,459,555 631,342 24,787 1,769,432 220,448 875,856 $5,093,420 ( M ) F o r e ig n C o m m e r c e — f— Dec. 31, 1921 EXPORTS Los Angeles .. Portland ........ San Diego __ San Francisco Seattle ........... Total . . . . X__j.L 17. j aix iviontns ünaing-----------\ O !- A $ ,., 6,290,811 39,012,503 2,078,724 73,083,105 47,334,341 $167,799,484 Dec. 31, 1920 Per Cent Increase or Decrease (— ) Six Months 1921 over 1920 ^ Year Ending ■■ '" > Dec. 31, 1921 Dec. 31, 1920 Per Gent Increas or Decrease (— ] Year 1921 over 1920 8,325,228 40,237,633 2,672,786 98,788,019 65,282,834 —24.4 — 3.0 — 22.2 — 26.0 — 27.4 $ 17,950,160 67,904,841 3,738,179 129,476,252 83,379,884 $ 18,606,121 61,428,974 7,120,720 225,835,944 192,684,309 — 3.5 10.5 — 47.5 — 42.6 — 56.4 $215,306,500 —22.0 $302,449,316 $505,676,068 — 40.1 $ 4,542,129 3,224,518 5,576,916 95,113,593 47,224,113 53.7 — 15.9 — 31.2 — 54.0 —26.2 $ 11,852,075 4,499,378 8,521,765 97,149,092 57,179,719 $ 9,897,336 8,218,370 12,384,161 211,928,232 134,068,533 19.7 — 45.2 — 31.2 — 54.1 — 57.3 $155,681,269 — 40.8 $179,202,029 $376,496,632 52.4 $ IMPORTS Los Angeles .. Portland ........ San Diego ---San Francisco Seattle ........... Total . . . . ..$ .. 6,982,922 2,709,697 3,836,990 43,738,338 34,814,394 $ 92,082,341 Federal Reserve Bank of San Francisco 31 Building activity again reached record pro portions when permits issued in the month of January totaled 8,298 in number and $22,872,876 in estimated value. The latter figure B uilding is larger than that for any previous Activity month on record with the exception of October, 1921, and exceeds the estimated value of building projected in Janu ary, 1921, by $13,930,561, or 155.7 per cent. These figures acquire added significance as an indication of the increase in the physical volume of building when allowance is made for declining costs of many building materials and labor during the past year. mits issued in January, 1922, than in January, 1921, and 16 of the reporting cities reported an increase in the value of permits issued this year. Comparative figures of the number and value of building permits issued in 20 reporting cities during January, 1922, and December, 1921, and January, 1921, are shown in table “ N.” Volume of business during the five weeks period ending February 2nd, as measured by total debits to individual accounts in 20 prin cipal clearing house centers, was Debits to 8.3 per cent less than in the first Individual five weeks of 1921. This year’s Accounts total to February 2nd was $2,393,377,000 compared with $2,609,729,000 in the same period last year. The per centage decline is considerably less than the (MILLIOINS) BANKD EBITS 600.---- r- J j j JJJJ J J 575 — V- — 550 —N 500 ------ - / ^ DEBT r s _ 1 >21 -2U: ---------- ____ --------- --------- ---------- V- — WHOl•ESAL.E PRI CES J : : r Ij r ;r i II - 190 :::- Zi t il f r— 180 170 - 150 425 ------400-------______ 3 t : ______ ______ A t —V 375 ------350 -------______ ______ 325------- 4_: 2 I 3 m ______ - 140 ______ - 130 ---------V - 120 ______ ______ ______ ______ - no 1931PF1CIS * IOC - 100 EZljE=rz6192 7 8 I 9 1i~i5| » H I _L 3* 1922 1_____ ---------- Building Permits Issued in 20 Principal Cities, Twelfth Federal Reserve District, 1921-1922 Debits to Individual Account in 20 Principal Cities, Twelfth Federal Reserve District, 1921-1922 Fourteen of the 20 cities from which figures were received reported a larger number of per percentage of decline in prices both at retail and wholesale (wholesale prices fell 21.1 per (N) Building Permits— No. ............ 136 ............ 84 ............ 180 ............ 319 L o s Angeles . . . .............3,416 Oakland .......... ............ 581 Ogden .............. ............ 16 Pasadena ........ ............ 225 54 Phoenix .......... ............ P o r t la n d ........... ............ 875 10 Reno ............... ............ Sacramento . . . ............ 249 35 Salt Lake City. ............ San Diego ....... ............ 361 San Francisco . ............ 620 65 San Jose .......... ............ Seattle ............... ............ 665 74 Spokane ........... ............ 74 Stockton ......... ............ Tacoma ........... ............ 259 Berkeley ......... Boise ............... Fresno ............. L ong Beach ... Total ........ ............8,298 January, 1922 Value No. December, 1921 Value No. January, 1921 Value Per Cent Increase or Decrease (—) in Value Jan., 1922 compared with Jan., 1921 338,332 13,550 367,509 759,218 7,975,168 1,329,405 43,250 347,745 74,982 1,147,960 9,200 1,897,862 81,900 539,210 5,528,510 75,365 1,806,200 203,445 72,995 261,070 130 43 203 270 3,364 500 20 209 52 731 15 224 117 265 568 59 518 115 68 201 $ 294,955 20,389 500,539 1,392,700 9,168,851 2,149,756 93,800 396,278 77,930 854,055 36,730 420,266 404,595 1,775,711 2,007,705 121,370 494,835 88,225 163,133 542,297 82 30 182 216 1,871 352 22 142 128 656 13 124 48 256 368 58 734 74 58 254 $ 138,533 11,218 341,550 472,570 3,301,714 546,329 41,910 179,016 178,872 646,560 22,135 148,712 70,495 499,342 1,246,808 98,772 683,840 37,120 97,650 179,169 144.9 20.7 7.6 60.8 141.5 143.4 3.1 94.4 — 58.1 77.7 — 58.4 1173.8 16.1 8.0 343.3 — 23.6 164.0 448.6 — 25.2 45.8 $22,872,876 7,672 $21,004,120 5,668 $8,942,315 155.7 $ Agricultural and Business Conditions 32 cent in 1921 according to the United States Department of Labor and retail prices slightly less) and indicates an increase in the physical volume of business activity compared with one year ago. Comparative figures of debits to in dividual accounts in 20 reporting cities during January, 1922, December, 1921, and January, 1921, are shown in table “ O .” N O T E — Beginning with this issue debits to indi vidual accounts will be shown in this report instead of bank clearings, it being now generally recognized that bank debits are a more accurate measure of change in business activity than are bank clearings. The total amount in all savings accounts against which pass books are issued, as re ported by 77 banks in seven principal cities, increased 2.9 per cent during the Savings month ending January 14th, being Deposits on that date $770,788,000 compared with $748,872,000 December 15th. The most noteworthy increases were reported in Los Angeles and San Francisco, the only decline having been in Spokane. During the year ending January 15th there was an increase of five per cent in savings deposits. The changes in the savings deposits in each city are shown in the accompanying table “ P.” The decrease of one in the number of reporting banks in Salt Lake City and the revision of that city’s December total are due to a bank failure on January 16th. Banking centers reported further fractional declines in the interest rate on commercial paper, bought through brokers during January. Open market rates for this class of Interest paper were % to % per cent lower Rates and are now uniform at 5 per cent throughout the district, (Salt Lake City not included). The general level of rates on all other classes of paper was unchanged during the month. A statement of interest rates on commercial loans prevailing in Federal Reserve Bank and Branch cities for the 30 day periods ending February 5, January 5, 1922, follows : Paper Bought Through Brokers Feb. 6 Jan. 5 Commercial Paper of Customers Feb. 6 Jan. 5 Los A ngeles.. Portland ........ Salt Lake City San Francisco Seattle .......... Spokane ....... 6y2 7 7 7 8 6 8 6 7 7 7 7 1922, and 5^ 5 5k 5H 5% The heavy demand for bankers' acceptances which prevailed during the first two weeks of January, and which resulted in a selling rate as low as 3% per cent, was not Acceptance well maintained in the latter part Market of the month. As holdings of bills in dealer’s portfolio in creased the rate gradually rose, reaching 4 per cent on January 25th, at which point it now (O) Bank Debits*— Five weeks ending Feb. 2, 1922 Berkeley .......... , $ Boise ................ Long Beach . . . Los Angeles . . . Oakland ........... Ogden .............. Pasadena .......... Portland ........... Reno ................ Sacramento .... Salt Lake City.. San Diego ....... San Francisco .. .. San Jose ........... Seattle .............. Spokane ........... Stockton .......... Tacoma ............ Total ............ 18,053 15,762 49,166 32,933 607,583 94,981 25,047 30,363 146,423 12,196 66,385 73,839 44,539 863,979 24,213 163,121 48,156 24,544 39,943 12,151 $2,393,377 Four weeks ending Dec. 29, 1921 Five weeks ending 14,200 11,278 51,954 25,057 461,350 82,540 14,958 18,945 121,221 9,409 73,347 77,941 34,506 734,389 21,356 126,314 40,864 21,276 33,319 11,660 Feb. 2, 1921 $ 15,710 14,900 52,711 28,077 534,759 101,214 24,589 27,449 187,825 13,853 69,682 98,882 43,755 1,034,212 29,197 189,940 60,580 24,823 45,794 11,777 $1,985,884 $2,609,729 $ *(000) Omitted. Jan. 14, 1922 Dec. 15,1921 Jan. 15, 1921 Per Cent Increase or Decrease (—) Jan. 14, 1922 over Jan. 15, 19 Los Angeles .............. Oakland .................... Portland ................... Salt Lake C ity........... San Francisco ........... Seattle ....................... Spokane .................... 13 7 10 9 17 15 6 $252,702 76,603 37,463 21,798 340,292 30,287 11,643 $244,460 74,434 37,456 21,509 329,466 29,689 11,858 $225,562 73,843 38,683 21,219 323,049 38,103 13,332 12.0 3.7 — 3.2 2.7 5.3 —20.5 — 12.7 Total .................. 77 $770,788 $748,872 $733,791 5.0 (P ) S a v in g s D e p o s it s *— Number of Banks *In thousands of dollars. 33 Federal Reserve Bank of San Francisco stands (February 16th). This rise in interest rate resulted in a moderate but steady demand, mainly from country banks. W ith the easing of rates in the New Y ork call money market towards the middle of February, city banks began to buy, and demand again became active. A rough classification of bills marketed as reported by the principal dealer on the Pacific Coast, shows a marked preference for 90-day bills. The approximate percentages of each class to the total sales of all classes fo llo w s : Jan. 15 to Feb. 15 30 60 90 120 day...................... ....15% day...................... ....18% day..................... ....55% day...................... ....12% Dec. 15 to Jan. 15 22.5% 33.3% 24.4% 19.8% No increase has been noted in the amount of acceptances created by the banks of this district. The tendency for banks to hold their own acceptances for investment is reported to be increasingly noticeable. Reports received by this bank from 36 of the principal accepting banks in the district show little change in the total amount of bills accepted during January although acceptances created by banks in the Pacific Northwest increased from $320,421 to $1,253,130. Total purchases by banks in this section and in southern California increased sufficiently to offset a decline in purchases by northern California banks and total purchases for the district ($9,300,953) were $3,215,585 greater than purchases in December ($6,085,368). Wheat, sugar, cotton, and canned fruit were the principal commodities on which acceptances executed during the month were based. Purchases and holdings of reporting banks appear in table “ Q .” On January 26 the Secretary of the Treasury announced an offering of $400,000,000, or there abouts, of 494 Per cent short term Treasury Notes, designated as Series A Governm ent 1925, dated February 1, 1922, Financing maturing March 15, 1925. In addition to the primary offering of $400,000,000 the Treasury offered additional notes up to $200,000,000 in exchange for V ic «?) Acceptances f— tory notes, and, to further carry out refunding plans, Federal Reserve Banks were authorized to purchase V ictory notes at par and accrued interest direct from holders up to an amount not exceeding $100,000,000. Purchases under this authority were to be made on or before February 1, 1922, which date was later ex tended to February 16, 1922. Subscriptions to the Series A 1925 offering of notes closed at noon February 1, 1922. Total subscriptions received amounted to $1,249,965,300, of which the Treasury allotted $601,599,500. Of this amount V ictory notes were accepted in payment for $200,000,000, leaving subscriptions of $401,599,500 to absorb the pri mary quota of $400,000,000. In the T w e lfth Federal Reserve District subscriptions totaling $60,162,000 were received, of which $40,317,000 were allotted. Of this amount $6,038,500 was paid for by V ictory notes. On February 9, 1922, the Secretary of the Treasury issued a notice to holders of V ictory notes and others concerned, calling for redemp tion all 3% per cent V ictory notes at par and accrued interest on June 15, 1922, on which date interest will cease to accrue. This an nouncement also provides for the redemption of 3 H Per cent V ictory notes at par and ac crued interest prior to June 15, at the option of the holder. The privilege of converting V ic tory notes (3^4 per cent to 4 per cent and vice versa) was likewise suspended effective February 9, 1922, and will terminate on Tune 15, 1922. The effect of restricted agricultural activi ties, continued marketing of products, and the cautious movement of business of all kinds has been reflected in the banking situaBanking tion during the past month. Loans Situation and discounts of 66 reporting mem ber banks declined from $880,604,000 on January 4, 1922, to $819,085,000 on February 8th, a decrease of 6.9 per cent and investments declined approximately $6,900,000, or 2.1 per cent, during the same period. The total decline in loans, discounts and invest ments combined was roughly $68,000,000. ,------------------------------- Amount Bought-------------------------------> Created in Amount Accepted Twelfth District All Other Jan., 1922 Dec., 1921 Jan., 1922 Dec., 1921 Jan., 1922 Dec., 1921 Pacific Northwest ------$1,253,130 $ 320,421 $ 258,564 $ 438,109 $2,604,606 $ 353,934 Northern California . . 2,159,692 2,870,742 1,741,049 2,142,686 805,790 1,953,168 Southern California . . 358,244 358,873 534,115 33,639 3,356,829 1,163,832 Other Districts ............ Jan., 1922 Total Dec., 1921 Amount held at close of month Jan., 1922 Dec., 1921 $2,863,170 $ 792,043 $ 4,883,097 $ 5,625,686 2,546,839 4,095,854 3,103,260 3,919,022 3,890,944 1,197,471 6,610,217 5,178,955 Total ...................... $3,771,066 $3,550,036 $2,533,728 $2,614,434 $6,767,225 $3,470,934 $9,300,953 $6,085,368 $14,596,574 $14,723,663 f36 Banks reporting. 34 Total deposits were $56,136,000 less and cash holdings declined $8,018,000. Borrowings of these city banks from the Federal Reserve Bank fell to $21,071,000 on February 8th, the net decline for the month being $12,599,000, or 37.4 per cent. The statement of condition of the Federal Reserve Bank on February 8th shows a de cline of $7,840,000, or 11.9 per cent, in bills discounted for all banks (city and country) compared with the statement of January 11th, the present figure being a new low for the re adjustment period. Holdings of acceptances purchased in the open market declined from $12,447,000 to $3,917,000 but purchase of Government securities increased the amount of these investments in the hands of this bank from $12,515,000 to $19,418,000. The net change in total earning assets was a decline PRIN CIPAL RESOURCE AN D of $9,467,000, or 10.4 per cent. The amount of Federal Reserve Notes in actual circulation declined $14,634,000, or 6.3 per cent. Cash re serves increased $8,813,000, or 3.1 per cent during the month. MILLIONS 260 240 220 F ZO El ,L R :s i f !V : 180 s 140 120 T °1‘A 80 60 40 N * 20 -1 1 1 2 1 . •*» / .^ B L.s D IN c IRc )L AÏTDr1 N 3TEl _ mm V S MILLIONS 260 240 220 ISO 160 140 ‘v zc>UN rED s s PN y» \ ... 13 1 B Lt s B( > u3Hr N ... 6 A I 7 I 1921 ... Ô 0 >EA MAl El ... r* 10 II 1 12 I 1 1 2 T ¡322. 100 80 60 40 20 Federal Reserve Note Circulation, Bills Discounted and Bills Bought in the Open Market, Federal Reserve Bank of San Francisco (In Millions of Dollars) L IA B IL IT Y ITEM S OF R E P O R TIN G M EM B ER B A N K S IN R ESER VE CITIES IN T W E L F T H FED ERAL RESERVE D ISTR IC T Feb. 8,1922 N u m b e r o f R e p o r t in g B a n k s .......................................................................... 68 Loans and D iscounts.............................................................................. $ 819,085,000 Investments ............................................................................................. 309,663,000 Cash in Vault and with Federal Reserve Bank............................... 97,817,000 Total Deposits ........................................................................................ 1,117,652,000 Bills Payable and Rediscounts with Federal Reserve Bank.......... 21,071,000 Jan. 4, 1922 Feb. 11.1921 67 68 $ 880,604,000 316,580,000 105,835,000 1,173,788,000 33,670,000 $ 886,115,000 289,320,000 99,210,000 1,130,936,000 79,179,000 C O M P A R A TIV E ST A T E M E N T OF CONDITION OF F E D E R A L R ESER VE B A N K OF S A N FRANCISCO A T CLOSE OF BUSINESS, F E B R U A R Y 8, 1922 RESOU RCES Jan. 11, 1922 Feb. 11, 1921 Total Reserves .............................................................................................................$2 94,235,000 Bills Discounted ........................................................................................................ 57,508,000 Bills Bought in Open M arket ............................................................................ 3,917,000 United States Government Securities ........................................................ 19,418,000 Feb. 8, 1922 $2 85,4 22,0 00 $1 95,2 25,0 00 65 ,348,000 139,581,000 12,447,000 44 ,980 ,000 12,515,000 12,832,000 Total Earning A ssets..................................................................... $ 80,843,000 All Other Resources5*'............................................................................................ .. 40,154,000 $ 90,310,000 $197,393,000 T o ta l R esou rces ................................................................................................ $415,232,000 49 ,337,000 38,488,000 $4 25,0 69,0 00 $431,106,000 $ 22,579 ,000 $ 21,200,000 L IA B IL IT IE S Capital and Surplus................................................................................. $ 22,570,000 Total Deposits ............................................................................................................. 141,196,000 Federal Reserve Notes in Actual Circulation ........................................... 21 6,33 6,00 0 All Other Liabilitiesf ............................................................................................ .. 35,130,000 T o t a l L i a b ilit ie s ................................................................................................ $415,232,000 ♦Includes “ Uncollected Item s” ............... flncludes “ Deferred Availability Items” 32.852.000 29.158.000 129,943,000 121,746,000 23 0,97 0,00 0 24 7,303,000 41,577 ,000 40,857,000 $4 25,0 69,0 00 $431,106,000 41.949.000 35.585.000 36.857.000 29.732.000
@FedFRASER