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MONTHLY REVIEW OF B U S IN E S S C O N D IT IO N S JOHN PERRIN, Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco No. 2 San Francisco, California, February 16, 1923 Vol. VII Summary o f National Conditions Further increase in the volume of production in basic industries to a level higher than in 1919 or 1920, a continued advance in the prices of many basic commodities, additional borrow ings from banks for commercial purposes, and somewhat higher money rates are the principal recent developments in the business situation. Production. Production in basic industries, as measured by the Federal Reserve Board’s index, was 6 per cent higher in January than in December, and reached a volume exceeded only once in the past, in May, 1917. Production of steel ingots, and of anthracite coal, and mill consumption of cotton showed particularly large advances, and most other important in dustries increased their output. Building opera tions have been maintained on a large scale. The expansion in production during January was accompanied by a substantial increase in freight shipments. Car loadings of forest prod ucts, reflecting continued building activities, reached the highest monthly total on record, and loadings of merchandise and miscellaneous commodities were higher than in any January of the past four years. Industrial employment continued to increase during January and shortages of both skilled and unskilled labor were reported by textile mills, steel mills, and anthracite coal mines. More wage increases at industrial establish ments were announced than in December. There is still some unemployment in states west of the Mississippi. In industrial and commer cial centers there has recently been a larger de mand for office workers, although throughout the country there is much unemployment in this group. Prices. The index number of the Bureau of Labor statistics computed from the wholesale prices of about 400 commodities, including fin ished and semi-finished products as well as raw materials, showed the same average level of prices in January as in November and Decem ber. Between December and January the prices of clothing, fuel, metals, building material, chemicals, and house furnishings advanced, but these advances were accompanied by declines in farm products and food, so that the com bined index remained unchanged. During re cent weeks, the prices of a number of basic commodities advanced rapidly and in many cases reached the highest points since 1920 or the early part of 1921. A m ong commodities reaching new high levels for the current move■ ILLIONS or DOLLARS 300 3800 9000 0V \ ] 2500 \ \ \ S4 \ 2000 >— 1500 IOOO 500 o^19»19■■ 1920 1921 1922 1923 Index of Production in Basic Industries Combination of 22 individual series corrected for seasonal variation (1919 average = 100 per cent) 0 Prices Index numbers of wholesale prices. United States Bureau of Labor statistics (1913 avera£e=100 per cent) 1919 1920 1921 1922 1923 Volume of Payments by Check Checks drawn on banks in 140 centers, New York not included 1919 1920 1921 1922 1923 Bank Credit All Federal Reserve Banka A substantial, black, cloth-covered, three-ring binder, large enough to contain one year’s (12) issues of this review, will be mailed prepaid to any address on our mailing list upon receipt of one dollar to cover actual costs. 18 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S ment were corn, beef, cotton, wool, silk, hides, lumber, rubber, linseed oil, copper, lead, and pig iron. Trade. An active distribution of goods for this season of the year is indicated by reports to the reserve banks both of wholesale and retail dealers for the month of January. Sales of department stores in over 100 cities were 12 per cent larger than in January, 1922. Inven tories for January show that there has been no large increase in stocks of goods held by de partment stores, and the rate of turnover con tinued rapid. In wholesale lines there were particularly large sales during January of dry goods, drugs, hardware, and farm implements. Bank credit. The larger volume of commer cial borrow ing at member banks in recent weeks has been contrary to the usual trend of the season. Commercial loans of reporting member banks on February 14th were $243,000,000 or 3 per cent larger than at the end of December, and 7 per cent above the level at the end of July when the general demand for credit first showed an upward turn. This increased demand for credit at the mem ber banks has resulted recently in an increased volume of borrow ing by the member banks at the reserve banks, chiefly Boston, New York, and Philadelphia. On February 21st, the loans to member banks were $628,000,000, or $248,000,000 higher than in mid-summer. During the same period the volume of Government securities and bankers' acceptances held by all Federal Reserve banks declined $161,000,000 resulting, therefore, in a net increase of $87,000,000 in the loans and security holdings of the reserve banks. The volume of Federal Reserve notes in cir culation which showed the usual post holiday decline in January, began to increase on Janu ary 31st, a week earlier than last year. M oney rates also showed a tendency to be come firmer, especially in recent weeks. The open market rate for commercial paper, which was 4 per cent last summer, rose during Feb ruary from a range of 4J4-4J4 per cent to a range of 4^4-5 per cent. On February 23rd, the discount rate on all classes of paper at the Bos ton and New Y ork Reserve banks was ad vanced from 4 to 4 y2 per cent. Summary o f District Conditions Not since 1920 has the opening month of the year been characterized by the industrial and business activity which marked January, 1923. The total volume of business transacted, as in dicated by debits to individual accounts at banks in 20 clearing house centers, was 16.5 per cent greater than in January, 1922, 5.9 per cent greater than in January, 1921, and 1.5 per cent greater than in January, 1920. A recent survey conducted by this bank showed that there had been an average increase of 27.2 per cent in the number of men employed in the principal industries of the district during the year ended February 1, 1923. In the majority of cases increases in employment had been accompanied by advances in wages. The lumber industry is experiencing great activity. Handicapped by adverse weather con ditions the camps and mills of the district have been unable to supply the increasing demand. Production during January, 1923, was 17 per cent greater than during January, 1922, ship ments 29 per cent greater, and orders received 52 per cent greater. Unfilled orders at the end of the month were 64 per cent in excess of orders held on February 1, 1922. The shortage of experienced workers previously reported from the mining camps of the district has be come less acute, and production of copper, lead, silver, and zinc is increasing. New records of production are reported from the oil fields of California, the daily output of petroleum dur ing January, 1923, having been 530,885 barrels, an increase of 6.6 per cent over the previous month and of 68.1 per cent over January, 1922, raising the amount of oil in storage to 62,635,588 barrels, a new high record. Reporting flour millers of the district are producing nearly 20 per cent more flour than they were one year ago. Building activity is again increasing, after diminishing temporarily during November and December. Both number and value of building permits issued during January, 1923, were greater than in the previous month or the same month of last year. Trade at retail during January, 1923, was greater in value and volume than in January of the two previous years and was approxi mately at the level of January, 1920. W holesale distributors in all of the 10 reporting lines of business advised substantial increases in the value of their sales in January, 1923, compared with January, 1922, significant among which was an increase of 66.1 per cent in the value of sales of agricultural implements. Business fail ures during the first month of 1923 were the same in number as in January, 1922, but the amount of liabilities involved was less by 61.3 per cent. Expansion of productive and distributive ac tivity has increased the demand for bank credit. Loans and discounts of 66 reporting member banks stood at $919,162,000 on February 7th, $16,735,000 above the figure for January 10th. Total deposits of the reporting banks continue to rise, each new weekly figure being a record one. A t $1,275,000,000 on February 7th their deposits were $185,000,000 above the low point of 1921-1922 (June 8, 1921) and $90,000,000 above the high point of 1920 (N ovem ber 12th). 19 FEDERAL RESERVE A G E N T A T S A N F RANCISCO There was a gain of $10,077,000 in total dis counts of the Federal Reserve Bank during the period from January 10th to February 14th, all of which occurred in the city of San Francisco. Borrowings of country member banks were practically unchanged at $18,000,000. Prices of the principal products of the dis trict fluctuated within narrow limits during the month, but disregarding seasonal changes, the general trend was upward. Important increases in the prices of cotton, wool, lumber, copper, and lead were reported. Crop Conditions Fall sown grain crops of this district have improved in condition during the favorable weather of January. H eavy rains and snows over the greater part of the district relieved previous drought conditions in areas of de ficient rainfall, and moisture for grow ing crops is now abundant. Moderate amounts of 1922 crop wheat were marketed during January, but buying, both for domestic use and for export, continued rela tively small in volume. Not only have exports of wheat from Portland and the Puget Sound ports during the current season been less than one-half of the heavy movement of the pre vious season, but they have been smaller than the light export movement of the 1920-1921 season. W H E A T EXPORTS July 1st to January 31st (inclusive) 1922-1923 1921-1922 1920-1921 (bushels) P o r t la n d ..............12,133,403 Puget Sound___ 3,045,437 Total ................15,178,840 (bushels) (bushels) 26,230,531 6,079,957 13,493,626 4,292,022 32,310,488 17,785,648 Commercial estimates indicate that 6,195,000 bushels (2,787,750 bags of 100 pounds each), or 75 per cent, of the 1922 California rice crop re mains in the hands of growers at the present time. O f this amount, approximately 1,444,444 bushels (650,000 bags of 100 pounds each) were damaged to some extent by the rains which fell during the latter weeks of the harvest. A l though a considerable quantity of this rice is not now in marketable condition, it is reported that proper handling in storage may make it saleable. Foreign buying has been small in volume during the past month, but an increase in domestic demand has strengthened the rice market and prices have advanced slightly. Dur ing January the Rice Growers Association of California sold number one paddy rice at prices ranging from $2.35 to $2.45 per 100 pounds. One year ago the same grade of rice sold for $2.60 to $2.65 per 100 pounds. The extent of the acreage contracted to sugar beets in California and the prospective plantings in Idaho and Utah indicate that there will be a large increase in the area devoted to this crop during the present year. Basing their estimates on the acreage included in contracts already signed in California, commercial fac tors state that there will be an increase of at least 25 per cent over last year’s plantings of 59.000 acres in that state. The figures for Idaho and Utah are not so definite, as sale con tracts for the 1923 crop have not yet (February 5th) been agreed upon in those states, but it is reported that last year’s figures of 25,000 acres in Idaho and 74,000 acres in Utah will be greatly exceeded. Profits obtained by growers of sugar beets during the past year, the losses sustained by growers of one of the principal competing crops, potatoes, and the prices now prevailing in the domestic sugar market are the factors which have stimulated interest in sugar beet culture. In California sugar beet factories have of fered growers a contract which advances prices 28 per cent above the level of last year. In Idaho and Utah few contracts have yet been signed. Storage holdings of apples in this district on February 1st remained twice as large as hold ings one year ago as will appear from the fol lowing table: 1922-1923 1921-1922 (cars) (cars) Total commercial crop of apples........... 44,800 Shipments July 1st to January 3 1 s t . . . 33,295 Remaining in storage in the d istrict.. . 11,505 51,123 45,198 5,925 Apple shipments during January, 1923, were greater by 2,779 cars, or 107 per cent, than dur ing January, 1922. The greater part of the mid season varieties of apples, previously held in storage, have now moved into consumption and remaining stocks consist largely of the late varieties, which may be held for some time without serious deterioration. Prices to growers for apples declined approximately 7 per cent during January, and are now about 25 per cent below prices a year ago. February 1st estimates of the 1922-1923 Navel orange crop in California forecast a yield approximately 5 % per cent greater than the January 1st estimate of 8,400,000 boxes, or 21.000 carloads. If present expectations of a yield of 8,862,000 boxes are realized, the Navel orange crop will be the largest on record, ex ceeding the previous record crop of the 19201921 season by 1,369,000 boxes. Citrus fruit shipments for the past two seasons have been reported as fo llo w s: N ov. 1st to Jan. 28th 1922-1923 1921-1922 (cars) Oranges ................................................... Lemons .................................................... 9,107 1,381 (cars) 8,952 1,487 20 M O N T H L Y REVIEW OF BUSINESS CONDITIONS liv esto ck Evidence of recovery of the livestock indus try from the depression of 1920 and 1921 is con tained in the recently published report of the United States Department of Agriculture showing changes in the number of animals on farms and ranges during 1922. Profitable oper ations during that year enabled growers of cattle, sheep, and hogs to increase and improve their flocks and herds, which had been allowed to decline in numbers and condition during the previous year. The largest increase was in number of hogs, the figure for the district standing at 1,749,000 on January 1, 1923, com pared with 1,612,000 on January 1, 1922, a gain of 8.5 per cent. Importation of hogs from states outside the district, which was notice able during 1921 and the early months of 1922, THOUSANDS 1920, an increase of 3.6 per cent during 1922, following a decrease of 4.1 per cent during 1921, indicates the extent of improvement dur ing the past year. Dairymen increased the total number of cows in their herds by 2.1 per cent during 1922, compared with an increase of 3.2 per cent dur ing 1921. The small but steady increase in the number of dairy animals during recent years indicates a stability in that industry, even dur ing periods of abrupt change in general busi ness conditions. Weather and range conditions during Janu ary continued favorable to the livestock indus try. Hay is plentiful in practically all sections where feeding is necessary. Under the influ ence of heavier receipts, prices of cattle and hogs at district livestock markets generally tended toward lower levels during the month. Although receipts of sheep were larger during January, 1923, than during December, 1922, they were less than during January, 1922, and an active demand for lamb and mutton main tained prices at or above the December level. Lambing has begun in the southern states of the district and losses have been small. Total receipts of livestock at 8 of the prin cipal markets of this district during January, 1923, and January, 1922, are given in the fol lowing table: C a ttle January, 1 9 2 3 .... 89,640 January, 1 9 2 2 .... 74,904 C a lv e s H ogs Sheep 16,533 11,834 222,228 205,966 210,808 230,318 Wool R e c e ip t s o f L i v e s t o c k a t E i g h t o f t h e P r in c i p a l M a r k e t s o f t h e D i s t r i c t 1922-1923. ( L o s A n g e l e s , O g d e n , P o r tl a n d , S a lt L a k e C i t y , S a n F r a n c i s c o , S e a tt l e , S p o k a n e a n d T a c o m a in c lu d e d ) practically ceased during the latter part of 1922. Improvement in the cattle industry ap pears in an increase during 1922 in the number of beef animals in the district amounting to 2.3 per cent. During 1921 a decline of 1.4 per cent was reported. Although the number of sheep in the district is still less than in 1921 and A combination of favorable factors, both physical and financial, have wrought a marked improvement in the sheep raising industry dur ing the past several months. The present winter has been comparatively mild and feed generally has been plentiful. Sheep on farms and ranges of the district are reported to be in excellent condition and fleeces, soon to be sheared, well grown and of better than average quality. The consumption of wool in the United States has increased rapidly since the low point (A) Livestock on Farms and Ranges— M IL K C O W S * O TH ER CATTLE* SH EEP* S W IN E * 1923 1922 1921 1923 1922 1921 1923 1922 1921 46 645 162 21 220 90 283 40 632 153 19 216 87 289 35 620 146 18 212 82 278 1,050 1,435 542 356 626 455 253 1,050 1,380 521 346 620 433 261 1,100 1,380 543 343 616 425 269 1,155 2,402 2,642 1,119 1,953 2,340 520 1,100 2,310 2,492 1,190 1,860 2,250 500 Tw elfth District ......... . . . 1,467 United States ............... . . , 24,429 Per Cent District to 6.0 U nited States .......... . . . 1,436 24,082 1,391 23,594 4,717 41,923 4,611 41,550 4,676 41,993 12,131 37,209 5.9 5.8 11.2 11.0 11.1 32.6 Arizona ........................... California ...................... . . Idaho ................................ . . . Nevada ........................... Oregon ............................ . . . Utah .................................. Washington .................. *000 Omitted. 1921 1923 1922 1,200 2,500 2,623 1,100 2,025 2,200 555 57 876 235 25 231 108 217 50 834 196 25 220 90 197 48 818 206 25 240 90 236 11,702 36,327 12,203 37,452 1,749 63,424 1,612 57,834 1,663 56,097 32.2 32.5 2.7 2.7 2.9 21 FEDERAL RESERVE AGENT AT SAN FRANCISCO of December, 1920, when less than 25,000,000 pounds were consumed. During November, 1922, the mills of the country used 79,000,000 pounds of w ool, grease equivalent weight, the largest m onthly figure reported since records were first kept, in January, 1918. Mill takings o f w ool during December, 1922, totaled 73,000,000 pounds, a slightly smaller figure than in November, but it is reported that woolen and worsted spindles were operated nearer to maxi mum capacity in December than in any month in recent years. Total consumption of w ool in the United States during 1922 is estimated at 803.000.000 pounds, grease equivalent weight, compared with 650,000,000 pounds in 1921 and 578.000.000 pounds in 1920. United States Department of Agriculture esti mates that on January 1, 1923, there were 12,131,000 sheep on the farms and ranges of this district compared with 11,702,000 on January 1, 1922. Buyers, now in the field, are reported to be offering growers from 30 to 45 cents per pound for the present season’s clip, but few sales have been made. A t this time a year ago it was esti mated that approximately 20 per cent of the 1922 wool clip had already been contracted for sale by growers at prices ranging from 23 to 33 cents per pound. Official estimates of w ool production, by states, in this district and for the United States from 1919 to 1922, inclusive, are given in the follow ing ta b le: MILLIONS OF POUNOS 1919 1920 (pounds)* (pounds)* 5,400 15,217 22,145 7,750 16,039 17,000 5,779 4,800 14,300 18,650 7,500 14,435 16,150 5,201 Tw elfth District .. 89,330 United St at e s . . . . . .298,258 81,036 277,905 900 Arizona ..................... California ................. Idaho ................... Nevada ...................... Oregon ....................... Utah ............................ W ashington ........... 1921 1922 (pounds)* (pounds)* 5.000 6,000 14,070 16,800 7.000 14,435 16,500 4,421 13,455 15,000 6,580 12,992 15,984 4,112 78,226 273,064 74,123 261,095 *000 Omitted. Dairy and Poultry Products P r o d u c ti o n o ! W o o l in t h e T w e l f th F e d e r a l R e s e r v e D i s t r i c t a n d t h e U n i t e d S ta te s a n d T o t a l C o n s u m p ti o n o f W o o l in t h e U n i t e d S t a te s . 1919-1922 ________ Contrary to the usual seasonal trend, cold storage holdings of butter in the principal mar kets of the district were increased during Jan uary, 1923. The movement, which may be a temporary one, followed the receipt of unusu ally large amounts of domestic butter and the arrival on this coast of small shipments of but ter from Australia and New Zealand. The net addition of 202,290 pounds of butter to cold storage stocks during the month brought the total holdings in this district up to 639,981 pounds on February 1st, compared with 633,569 MILLIONS OF POUNDS *Estimated The increasing demand for w ool during 1921 had little effect on prices, as large surplus stocks were being pressed for sale in practi cally all markets of the world. By January, 1922, world stocks had been reduced to more nearly normal proportions, and since that time prices have advanced rapidly under the stimu lus of an increasing demand. Present quota tions, both in the central markets and in the producing states, are from 50 to 100 per cent higher than one year ago. Sheep raisers in this district have benefited materially from this change. Flocks have been increased in size and improved in quality by the addition of new and younger stock. The <•' / / ri& r 1922/ / / r /. / s s' ' , N\ \ \\ NN \X \ S. \ ___1___ L _L I S e a s o n a l M o v e m e n t o f H o l d i n g s o f C o ld S to ra g e B u t te r a t F o u r P r in c i p a l M a r k e t s o f t h e D i s tr i c t , 1922-1923 pounds held on February 1, 1922. Butter prices in the San Francisco market since January 1st have been irregular, 93 score creamery butter opening at 50^4 cents per pound on January 22 M O N T H L Y R E V IE W OF B U SIN E S S CO N D IT IO N S 3rd being quoted at 5 2 ^ cents on January 23rd and thereafter declining steadily, standing on February 16th at 48 cents compared with 44% cents on February 16, 1922. Holdings of cold storage eggs in the five principal markets of the district are dwindling rapidly as the season of heavy egg production approaches. Only 706 cases remained in stor age on February 1st, a reduction of 90 per cent from the previous month. There were 2,411 cases held in storage on February 1, 1922. The price of extra grade eggs in the San Francisco market declined from 43^2 cents per dozen on January 1st to 31 cents per dozen on January 31st. On February 16th extra grade eggs were quoted at 28^2 cents per dozen in the same market. A summary of the cold storage holdings of butter and eggs in the chief markets of the Twelfth Federal Reserve District is presented in the following table: Feb. 1. 1923 Jan. 1, 1923 Butter (pounds). 639,981 437,061 Eggs (cases).... 706 7,235 Dec. 1, 1922 Feb. 1, 1922 1,178,460 633,569 73,183 2,411 Prices Available price index numbers for January indicate that the general level of prices was relatively stable during that month. The whole sale price index number of the United States Bureau of Labor, which includes 404 com modities in the raw, semi-manufactured, and manufactured state, was unchanged at 156 (1913 prices=100). This figure represents an advance of 18 points, or 13 per cent, since Jan uary, 1922, when the low point was reached in the price decline which began in 1920. Since July, 1922, there has been an advance of only one point, or less than 1 per cent. The 20 basic commodities index number of the Federal Re serve Bank of New York, which is more sen sitive to individual price changes than is the more inclusive index number of the Depart ment of Labor, advanced during January from 148.7 to 151.7 (1913 prices=100). Retail prices, as reflected in the National Industrial Confer ence Board's index of the cost of living, de clined one-half of 1 per cent during the month, standing at 158.1 per cent in January compared (jB ) Commodity Prices — Commodity Twenty Basic Commodities (F. R. B. of N. Y.) 1913=100. Wholesale Prices (U. S. Bureau of Labor*) 1913=100__ Cost of Living (National Industrial Conference Board) July, 1914=10()..................................................... Cattle (Native Beef).. .Weekly average price at Chicago.. Sheep ............ Lambs ........... H o g s .............. W h e a t.............Chicago contract prices for May W heat.. Barley .............Shipping Barley f. o. b. San Francisco... Rice ................California Fancy Japan at San Francisco C o tto n ........... .Middling Uplands— Weekly range of spot quotations at New Orleans............... Wool ............. .Average of 98 quotations at Boston....... Flour ............ ..First Grade Family Patent f. o. b. Pacific Coast mills .................................. S u g a r ............ .,Beet granulated f. o. b. San Francisco... A p p le s............ .Extra Fancy Winesaps f. o. b. Pacific Northw est................................... O ra n ge s.......... .Navels, market pack, Los Angeles........ .Loose pack at Los Angeles................ Dried Apples__ .Choice in 50-lb. boxes f. o. b. California.. Dried Apricots .,.Choice in 25-lb. boxes f. o. b. California.. Prunes ........... Size 40/50 in 25-lb. boxes f. o. b. Calif... Raisins ........... Loose Muscatel in 25-lb. boxes f. o. b. California ................................... Canned Apricots. Choice 2 ^ s f. o. b. California............... Canned Peaches...Cling Choice, 2 ^ s f. o. b. California..... Canned Pears.....Bartlett, Standard 2 ^ s f. o. b. California. Raw M ilk ..........Pacific Coast— January average........... Butter ............ ,93 score at San Francisco................... E g g s .............. .Extras— San Francisco...................... Copper ........... .Electrolytic; New York Spot............... Lead ............. ,New York Spot............................... Silver ............. New York Foreign........................... Zinc ............... East St. Louis Spot........................... Petroleum ....... California 35° and above.................... Douglas F ir...... 2x4, 16-ft. No. S1S1E f. o. b. Seattle , Douglas F ir...... .12x12 Timbers f. o. b. Seattle............. •Revised figure». Unit Feb. 2.1923 151.7 156 100 lbs. 100 lbs. 100 lbs. 100 lbs. bu. cental cental One Month Ago One Year Ago 148.7 156 128.5 138 158.9 158.1 161.4 $8.80 $8.90 $7.25 7.50 7.75 6.95 13.90 13.90 13.25 8.50 9.05 8.25 1.17^-1.18^ 1.17^-1.19^ 1.23^-1.25^ 1.60-1.75 1.60-1.70 1.30-1.40 4.60 4.40 5.00 lb. lb. 27.62-28.00ii 81.28* 26.50-26.75* 79.50* 15.00-15.75* 54.71* bbl. lb. 7.81 6.90 7.73 7.10 7.27 5.30 box box box lb. lb. lb. 1.40-1.55 2.25-3.25 3.00-3.50 .08^2-08^4 .23*4 .11$4-. 12 lb. doz. doz. doz. 100 lbs. lb. doz. lb. lb. oz. lb. bbl. M ft. M ft. .11 3.15 2.60 2.85 2.82 .48^ .34 .15 8.3754 .64^4 7.05—7.10^ 1.45 21.50 24.00 1.65-1.75 3.00-3.25 3.25-3.50 .08¿4 .23-.24 AU/^-.U .11 3.25 2.60 2.90 2.75 .49^ .47 •14M 7.404 MH 7.05-7.10* 1.95 20.50 20.00 2.00-2.10 2.50-4.00 2.25-2.50 .14 .23^2-.24 .12J4 .15& 3.00 2.60 3.00 2.50 •375Í .33^4 A3y4 4.70* .66 4.50-4.55* 2.45 12.50 19.00 FEDERAL RESERVE A G E N T A T S A N FRA NC ISCO with 158.9 per cent in December. (July, 1914= 100 per cent.) Decreases in the retail costs of food were responsible for the decline. Eliminating advances and declines due to seasonal influences, changes in the prices of the principal agricultural products of this dis trict were generally limited in extent. The con tinued strength of the raw textile market, how ever, has been noteworthy. On the Boston market the average of 98 wool quotations ad vanced from 79.50 in December to 81.28 in January. Present prices for wool are approxi mately 50 per cent above those of a year ago. Prices of standard grades of cotton advanced a cent a pound during January, 1923, and were 23 wheat held a year ago. Stocks of flour held by the same companies on February 1st totaled 530,439 barrels, an increase of 13.3 per cent over their holdings of flour on February 1, 1922, and a slight increase over the previous month. THO USAND BARRELS 9 0 0 r--------------------700 50 0 300 STC CKS OF FLOUR/ f / '* -V / \% / \ v- ; OUT PUT 0 r FLOUR 10 0 o n — :— n 1922 1923 Monthly Flour Output, and Stocks of Wheat and Flour at End of Month, of 16 Reporting Milling Companies Output of flour mills of this district was greater during January, 1923, than during De cember, 1922, and at present millers are pro ducing more flour than they were at this time a year ago, as shown by the following table: 1920 1921 19 22 1923 No. of Mills Reporting Jan., Dec.. 1923 1922 Wholesale Prices and the Cost of Living, 1920-1923 United States Bureau of Labor Index of Wholesale Prices (1913=100) National Industrial Conference Board Index of the Cost of Living (July 1914=100). more than 80 per cent above prices in January, 1922. The sugar market has been erratic. The price of refined beet sugar on the San Francisco market declined from $7.10 per 100 pounds to $6.90 per 100 pounds during the month ending February 2nd. During the following 11 days quotations advanced to $8.70 per 100 pounds, the highest point reached since November, 1920, but have since declined to $8.45 per 100 pounds, the quotation on February 15th. Noteworthy advances in prices occurred in the metals group. The price of copper reached 15 cents per pound for the first time since 1920 and lead prices advanced sharply to a level 78 per cent above that of a year ago. Lumber prices advanced from 5 to 20 per cent during January, 1923. Milling Millers are now consuming the large stocks of wheat which they accumulated during the autumn of 1922, and holdings of 16 companies, which report these figures, declined during January, 1923, for the second consecutive month. A t 4,145,927 bushels on February 1st, they are still more than double the stocks of Oregon Dec., 1922 (barrels) (barrels) (barrels) 2 8 6 ,9 7 7 9 ,0 1 9 2 1 7 ,7 1 3 10 10 2 8 1 ,0 6 8 3 1 1 ,3 0 6 1 6 9 ,9 6 4 18 3 17 16 48 46 17 Jan., 1922* Jan., 1923 1 5 5 ,1 6 2 1 3 ,5 3 6 1 4 6 ,9 2 0 3 8 0 ,0 2 4 3 6 0 ,9 8 4 3 3 3 ,1 2 3 8 4 2 ,3 6 2 8 1 2 ,1 4 2 7 1 1 ,2 9 2 *67 M ills reporting. Reports from millers indicate that activity in the export market increased, but that the volume of domestic sales declined slightly dur ing the past month. Flour prices in this dis trict continued to advance during January, and on February 1st were approximately 7 per cent higher than they were on February 1, 1922. Lumber Activity in the lumber industry of this dis trict increased notably during January, 1923. Reported production, new orders, and ship ments exceeded the figures for both Decem ber, 1922, and January, 1922, the increase over the latter month being particularly significant. Practically all of the large lumber manufactur ing plants on the Pacific Slope, which were closed for repairs during the latter part of De cember, resumed operations during January. In the inland lumbering sections, operations 24 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S are still greatly curtailed, as is customary at this season of the year. Production of lumber in this district during January, 1923, was esti mated to be 85 per cent of normal mill capacity, a particularly high figure for this month. One year ago mills were operated at approximately 75 per cent of capacity. Figures showing the activity of reporting mills in the four lumber associations in this district follow (000 omitted) : Production ....... Shipments ....... Orders ............ Unfilled Orders... Jan., 1923 Dec., 1922 Jan., 1922 (board feet) (board feet) (board feet) 4 1 4 ,9 8 5 3 8 8 ,3 5 4 3 5 3 ,4 2 0 4 7 5 ,5 1 0 4 6 5 ,4 8 8 3 6 8 ,7 4 8 . 5 6 3 ,2 9 9 4 6 0 ,3 1 4 3 7 1 ,2 1 1 . 5 7 2 ,7 7 0 5 0 0 ,5 1 1 3 4 8 ,2 4 2 The domestic market for lumber was unusu ally active during January, principally because of the large demand from California and the Atlantic Coast. W ith the exception of the month of May, 1922, new orders booked during M IL L IO N S O F B O A R D F E E T Federal Reserve District as Reported by Four Lumber Associations, 1922-1923 January, 1923, reached the largest total re ported in any month during the past three years. For the second consecutive month, new orders and shipments exceeded production. A s a result of this excess of demand over available supply, total stocks of lumber at producing cen ters on February 1, 1923, were reduced to a point considerably below stocks held one year ago. In the foreign market, Australia, China, Japan, and the W est Coast of South America continued as the largest purchasers of Pacific Coast lumber. Price advances noted during the latter part of December, 1922, were re ported well maintained during January, 1923. Shingle mills were less active than other branches of the lumber industry during Janu ary, 1923. Present production of shingles is estimated to be 60 per cent of normal. Although handicapped by severe storms and flood conditions in many sections of the Pacific Northwest, logging interests operated at ap proximately 75 per cent of capacity during January, 1923, compared with 50 per cent of capacity during January, 1922. Greater activity in mining than at any time in the past two years marked the first month of the year 1923. Increased production and a firm or rising market for all of the principal metals produced in this district were reported. The shortage of experienced miners, which for a time limited production, has largely disap peared as skilled workers temporarily em ployed in other occupations have returned to the mining camps. In December, 1922, the pro duction of copper at eight of the thirteen prin cipal copper mines which are operating in this district was 28,516,000 pounds. In December, 1921, the combined output of the three mines then producing copper was 7,749,000 pounds. The lead and silver mines of Idaho and Utah are steadily expanding their operations; the silver mines of Nevada continue to operate at the high level maintained during the past year ; and the gold mines and dredges of California have held or increased the gains in production recorded during the latter part of 1922. Outstanding features of the national metal market during January were increased demand for copper and lead and substantial advances in the prices of these metals. Sales of copper for domestic and foreign shipments during Decem ber, 1922, are estimated to have been more than twice as large as December production and ex panding activity in the copper market followed. The price of electrolytic copper delivered in New York is now (February 16th) 15.50 cents per pound compared with 14.75 cents per pound on January 16th, and 13.63 cents per pound, the average monthly price during the year 1922. The price of lead in the New York market on February 16th was 8.25 cents per pound compared with 7.5 cents on January 16th and 4.7 cents per pound on February 15, 1922. Figures of the national production of copper, silver, and zinc, three of the most important metals produced in this district, are shown in the following table which compares the output during December, 1922, with November, 1922, and December, 1921 : Dec., 1922 Nov.. 1922 Dec.. 1921 Copper (lbs.) (mine production) 103,845,306 102,593,152 18,595,182 Silver (oz.) (commercial bars) 5,052,192 4,869,905 3,896,952 Zinc (tons) 42,841 38,746 22,013 (slab) ............ Figures for lead are not available. Petroleum The steady increase in petroleum production in California, which has now been in progress for seven months, continued during January, when average daily production of 530,885 bar rels was 6.6 per cent greater than in December, FEDERAL RESERVE A G E N T A T S A N FRANC ISCO 25 1922, and 68.1 per cent greater than in January, Electric E n ergy 1922* Seasonal decreases in the use of electric power for industrial purposes were smaller than usual during December, 1922, and total sales of 20 of the principal power companies of the district were 20.6 per cent greater than during December, 1921. An increased demand for electric power compared with a year ago was reported for all of the major industries of the district except agriculture. The abundant rains of the present winter have been largely responsible for the decline in agricultural con sumption of electric energy. Sales of power for industrial purposes by certain industries and by sections of this district are compared in the following percentage table: Consumption of petroleum, as indicated by shipments to refineries and other consumers, was also greater during January, 1923, than during the previous month, the figures being 484,089 barrels per day for January and 451,150 barrels per day for December. The increase of 32,939 barrels per day was less than the inM IL L IO N S 100 80 s a 60 l i l i Ss 40 stored $tocks of petroleum (BBLS.) Percentage Increase or Decrease, December, 1922, compared with December, 1921 Total Agricul- ' MannIndustrial Mining facturing ture Sales 20 PETROtEI IMPRODU: t (BBLS) California......... — 43.2 Pacific Northwest. +28.0 Intermountain __ — 21.9 Twelfth District... — 42.3 10 PETROLEUMSHIPMENTS (BBLS.1 1923 1922 CALIFORNIA Production, Shipments, and Stored Stocks of Petroleum, and Refinery _______ Stored Stocks of Gasoline, 1922-1923 Figures for months subsequent to August, 1922, furnished by American Petroleum Institute. Figures for previous months partly estimated. crease in production (33,246 barrels per day), however, and stored stocks rose to the new record figure of 62,635,588 barrels. Seventy-eight new wells were completed during January and 21 wells abandoned, a net increase of 57 producing wells during the month. — 1.9 4-12.8 +58.0 + 6.8 +32.8 +19.5 +40.6 +29.6 + 8.7 +27.9 +83.5 +20.6 Compared with November, 1922, total indus trial sales of power during December, 1922, were less by 5.1 per cent. There were seasonal declines in the demand of the agricultural, lumbering, and manufacturing industries. In the accompanying chart are shown the total industrial sales of eight California power com panies during 1921 and 1922. M IL L IO N S O F K .W .H Automobile Registrations The total number of automobile registrations (passenger cars and trucks) in this district during the year 1922 was 1,350,661, compared with 1,149,560 registrations in the year 1921, an increase of 17.4 per cent. Segregated ac cording to states, the 1922 statement shows an increase in the number of registrations in each of the seven states included in the district. The figures follow : 1922 1921 Per Cent Increase 1922 over 1921 38,369 845,082 53,751 12,647 134,566 49,314 216,932 35,049 691,344 51,264 10,820 118,615 47,485 194,983 9.4 22.2 4.8 16.9 13.4 3.8 11.2 Total Twelfth Federal Reserve District .. 1,350,661 1,149,560 17.4 California ................... 58,100 Pacific Northwest . . 11,029 Intermountain States 10,036 48,046 10,266 9,743 174,281,634 77,898,863 42,532,384 160,212,857 60,903,336 23,166,257 Total United States 12,357,376 10,505,660 17.5 Twelfth District 68,055 294,712,881 244,282,450 Arizona ............... California............. Idaho .................. Nevada ................ Oregon ................ Utah ................... Washington ......... Total Industrial Sales (K. W. H.) of Eight California Power Companies, 1921*1922 Figures showing the number of industrial consumers and industrial sales of reporting companies during December, 1922, and Decem ber, 1921, follow: Number of Industrial Consumers Dec., Dec., 1922 1921 ... 79,165 Industrial Sales K.W. H. Dec., Dec., 1922 1921 M O N T H L Y R E V IE W OF B U S IN E SS CO N D IT IO N S 26 R e ta il T r a d e Wholesale Trade The dollar value of sales of 33 representative department stores in this district was 14.9 per cent greater during January, 1923, than dur ing January, 1922. Prices at retail having changed little during the past year, it is prob able that the volume of merchandise sold at retail during January, 1923, was likewise ap proximately 15 per cent greater than in Janu ary, 1922. All of the six reporting cities report ed increases, the gains in Los Angeles, 17.0 per cent, San Francisco, 13.0 per cent, and Seattle, 18.2 per cent, being particularly noteworthy. The number of individual sales transactions during January, 1923, reported by 11 stores, was 12.6 per cent greater than during January, 1922. The distinct improvement in wholesale trade, noted during the latter half of 1922, continued during January, 1923. Reports received by this bank from 195 representative wholesale firms in 10 lines of business show that the dollar value of sales in all lines was greater in Janu ary, 1923, than in January, 1922. Sales of agri cultural implements were greater by 66.1 per cent. In three other lines of business the in crease in January, 1923, compared with Janu ary, 1922, was over 30 per cent, and in seven of the ten lines increases of 18 per cent or more were reported. The percentage increase or decrease (— ) in the value of sales of 195 reporting firms in 10 lines of wholesale business was as follows : Number of Jan., 1923, compared with Firms Jan., 1922 Dec., 1922 M IL L IO N S OF D O L L A R S 24 22 i ( 1 / / / / / / / 20 18 16 14 12 10 Agricultural Implements.. 23 Automobile Supplies........ .20 Automobile Tires............. .22 Drugs .............................. .10 Dry Goods.........................15 Furniture ......................... .16 Groceries ......................... .29 Hardware ..........................20 Shoes ............................... .14 Stationery........................ .26 ✓ \ 195 • < -1 9 2 3 / ^ * 's / / 2 / 66.1 9.1 63.9 10.2 33.4 18.4 7.4 35.9 19.1 22.4 13.8 —10.6 15.5 3.6 36.6 —14.5 6.1 5.3 — 9.4 —10.4 According to the United States Department of Labor, wholesale prices have increased 13.0 per cent during the past year. 8 0 Net Sales of 31 Department Stores in Twelfth Federal Reserve District (in Millions of Dollars) Statistics concerning sales, stocks, and out standing orders as furnished by 33 department stores in this district follow: Net sales (percentage increase or decrease*) January, 1923, compared with January, 1922 January, 1923, compared with December, 1922 Stocks (percentage increase or decrease*) January, 1923, compared with January, 1922 January, 1923, compared with December, 1922 Percentage of average stocks on hand at close of January, 1923, to sales during same month .......................................................... Percentage outstanding orders at close of January, 1923, to total purchases during year 1922 ..................................................... JANUARY PRICES!1922 »I009&» JANUARY 19t l SALES U.S.BUREAU OF LAB0B INDEX NO. WHOLESALE PRICES AGRICULTURAL IMPLEMENTS A U T O M O B IL E S U P P L IE S AUTOMOBILE T IR E S 14.9 —43.5 DRUGS DRY G O O D S —2.8 —1.7 F U R N IT U R E G R O C E R IE S 420.6 H A RD W A RE , j SH O ES 9.7 * ( — ) Decrease. S T A T IO N E R Y 40 60 80 100 120 140 160 Collections during the past six months have been reported as follow s: Dollar Value of Sales of Representative Wholesale Firms and General Wholesale Prices in January, 1923, compared with January, 1922 Number of Firms Reporting Collections as Poor Good Fair Excellent Collections during the past three months have been reported as follow s: August, September, October, November, December, January, 1922... 1922... 1922... 1922. . . 1922... 1923... 1 2 6 4 3 3 10 13 9 10 10 14 9 5 6 7 6 6 0 0 0 0 1 0 Number of Firms Reporting Collections at Good Fair Poor November, 1922............ 5 December, 1922............ 2 January, 1923............ 5 53 57 52 73 67 67 8 13 12 FEDERAL RESERVE A G E N T A T S A N FRA NCISCO 27 Employment Building Activity A recent survey by this bank of employment conditions in the district discloses the extent of the improvement which has taken place during the past year. Returns were received from 44 of the largest employers of labor in the major industrial activities of the district. They show an increase of 27.2 per cent in the total number of men employed on February 1, 1923, com pared with February 1, 1922, and in most cases increases in employment have been accom panied by wage advances. Detailed figures are given in the following table: Building permits issued in 20 principal cities of this district during January, 1923, were greater both in number and value than in De cember, 1922, or January, 1922. Number of ^-Percentage Increase in—> Firms Employment Wages Industry B u ild in g ..................................... ................. . . C a n n in g ............................... 4 9.3 Electric P o w er.................. 6 31.2 Lumbering ......................... 4 21.1 Milling (flour) ................. 4 10.8 M ining ................................ 4 6.5 Oil 2 23.1 37.4 Miscellaneous* ................. 20 T o tal ................................ 44 10 15 Percentage Increase in Number and Value of Building Permits, January, 1923, compared with Jan.. Dec., 1922 1922 Number ................................................... V a l u e .......................................................... 24.2 14.3 32.7 18.7 Segregated according to cities, the January, 1923, returns show an increase in the number of permits compared with January, 1922, in 16 of the 20 cities, while the value of construction involved was greater in 15 cities. 8 10 N o change 10 N o change 27.2 ^Includes iron and steel works, paper mills, packing companies and shipbuilding companies. Contrary to the trend in other industries, wages paid farm labor in the western states de clined during the year 1922. Figures in the fol lowing table are taken from reports of the United States Department of Agriculture: <— Wages by the Month— > , _ . Without With Board Board Far W estern States January 1, 1923............................. $42.78 1922 average.................................... 45.57 United States January 1, 1923............................. 27.81 1922 average.................................... 29.17 $62.71 66.03 Los A n geles......... P o r tla n d ................ San F ra n c isc o ... , Seattle .................. Total ................. 16 ., .. 8 10 6 ..40 Number of Men on Payroll* Jan. 31, Dec. 31, 1922 1923 2,336 29,253 7,486 6,904 2,396 47,786 46,039 30,895 7,687 6,868 *These figures do not represent the total number of men engaged in manufacturing activities in these cities, but only the pay roll figures of a selected number of firms. According to the United States Department of Labor the wholesale price level of building materials increased 19.7 per cent in the year period, January, 1922, to January, 1923. It is 40.30 41.79 Employment conditions during January, 1923, were unchanged compared with Decem ber, 1922. A moderate amount of unemploy ment exists among unskilled laborers awaiting the commencement of spring work in the seasonal industries. Recent trends of employment in manufactur ing industries are indicated in the following table showing the total number of workers on the payrolls of 40 manufacturing firms usually employing 501 men or more: Number of Firms Building Permits Issued in 20 Principal Cities, Twelfth Federal Reserve District, 1922-1923 (C) Building PermitsJanuary, 1923 No. Value January, 1922 No. Value 136 84 180 319 3,416 581 16 225 54 875 255 494,437 34,975 1,192,187 1,383,026 11,258,517 1,852,438 82,275 765,380 85,625 1,537,450 9,500 451,554 202,325 532,150 3,205,811 225,195 1,045,968 122,570 183,620 1,499,404 249 35 361 620 65 665 74 74 259 338,332 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 D is t r i c t ........... 10,313 $26,164,407 8,298 $22,872,876 B e r k e le y ......... 174 60 189 Fresno ............ Long Beach... 416 L o s A n g ele s. . 4,646 806 Oakland ......... 19 379 Pasadena ........ Phoenix ......... 69 Portland . . . . 865 12 Sacramento .. Salt Lake City San D ie g o ___ San Francisco. San Jose.......... S e a t t le .............. Spokane ......... Stockton ........ Tacom a .......... 214 47 427 718 96 693 126 102 $ 10 $ 28 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S not clear, therefore, whether or not an increase of 14.3 per cent in the estimated value of per mits issued during January, 1923, compared with January, 1922, is indicative of an increase in the physical volume of construction. The large increase in the number of permits (24.2 per cent) over the same period suggests that the units of construction were smaller and less expensive in January, 1923, than in January, 1922. Business Failures Business failures in this district during Janu ary, 1923, were approximately the same in number, but 61.3 per cent less, in total liabilities than during January, 1922. Liabilities of the average failure in the district were $10,554 in LIABILITIES IN MILLIONS ^ V Bank Debits The volume of business transacted in this district during January, 1923, as measured by bank debits in 21 principal clearing house cen ters, was 4.6 per cent greater than in Decem ber, 1922, and, as reported by 20 cities, was 16.5 per cent greater than in January, 1922. The latter increase of 16.5 per cent, amounting to $312,171,000, was approximately three times the percentage increase noted in December, 1922, as compared with December, 1921. In January, 1923, for the first time since Septem- \ A ' NOOF AILUREs A \ / \ / v" V' V V ILITIES 200 150 100 \ 50 -I___ 1___ut 1922 1923 Business Failures, Twelfth Federal Reserve District, 1922*1923 January, 1923, compared with $27,200 in Janu ary, 1922. R. G. Dun & Company’s compara tive figures of the number and liabilities of business failures in the states of this district follow : January, 1923 No. Liabilities MILLIONS OF DOLLARS 2600i------------- NO OF FAILURES 250 10 Arizona ........ 3 $ 38,200 California .... ,. 95 828,906 12 172,227 1 91,000 , . 34 324,015 Utah ............. .. 15 138,273 Washington . . . . 4 6 581,678 2500 1923 2400 2300 22ÖO District .... . 206 $2,174,299 2100 December, 1922 No. 5 58 20 1 34 15 53 976,270 744,903 5,317 604,710 317,549 918,898 186 $3,623,837 *922^— 2000 1900 1800 \ / \ I \ ! 1700 Debits to Individual Accounts in 20 Principal Cities, Twelfth Federal Reserve District. 1922*1923 ber, 1922, bank debits in San Francisco were greater than in the corresponding month a year ago, the increase being 4.3 per cent. In the dis trict outside of San Francisco bank debits in January, 1923, were 24.8 per cent greater than in January, 1922. Noteworthy increases during the year period were reported from Long Beach, 86 per cent, and Ogden, 53 per cent. W hen it is considered that wholesale prices as reported by the United States Department of Labor have increased but 13.0 per cent in the year period January, 1922, to January, 1923, and that retail prices are practically unchanged, an increase of 16.5 per cent in bank debits indi cates that the physical volume of business transacted in January of this year was sub stantially larger than it was in January, 1922. (D ) Bank Debits*— Four weeks ending Jan. 31,1923 Berkeley .............................. $ Boise .................................... Fresno .................................. Long Beach........................... Los Angeles......................... Oakland................................ O gden................................... Pasadena............................... Phoenix................................ Portland............................... Reno .................................... Sacramento .......................... Salt Lake City...................... San Diego............................. San Francisco....................... San Jose................................ Seattle .................................. Spokane ............................... Stockton .............................. Tacoma ................................ Yakima ................................ 19,900 13,226 49,014 50,102 600,928 104,117 29,225 30,207 18,669 124,717 10,037 71,572 60,385 46,368 703,509 22,569 149,358 46,742 21,518 33,763 8,654 Total ................................. $2,214,580 *000 Omitted. Four weeks ending Feb. 1,1922 $ 14,578 12,851 38,572 26,888 479,571 76,236 19,095 25,048 117,929 8,955 55,252 51,911 36,027 673,901 21,034 127,296 37,453 20,174 31,580 9,389 $1,883,740 29 FEDERAL RESERVE A G E N T A T S A N FR A N C ISCO Savings Accounts Banking and Credit Situation The total amount in all savings accounts, as reported by 75 banks in seven principal cities, increased 1.5 per cent during the month ended January 31, 1923, being on that date $864,077,000 compared with $851,142,000 on December 31, 1922. Savings accounts in the district as a whole and in Los Angeles, Oakland, Portland, San Francisco, and Seattle are now at the high est point reached since records were first kept in 1919. In Salt Lake City and Spokane the January figures are only slightly below the re spective record months of March, 1922, and December, 1920. Savings accounts in the seven cities are now 15.1 per cent greater than one year ago, all of the reporting cities participat ing in the increase. The gains in Los Angeles, 22.0 per cent, Portland, 15.0 per cent, and Seat tle, 20.1 per cent, have been particularly note worthy. Following a moderate recession immediately after the new year, loans and discounts of 66 reporting member banks again advanced and on February 7, 1923, stood at $919,162,000, the highest figure reported since the upward move ment began a year ago on February 8, 1922. The major part of the recent increase has been in “other loans, largely commercial,” as dis tinguished from “loans secured by stocks and bonds’’ and has doubtless resulted in large part from the increase in business and industrial activity noticeable in the district. Total de posits of reporting member banks continued at record levels, advancing from $1,261,296,000 on MILLIONS o r DOLLARS M IL L IO N S O F D O L L A R S 10 0 0 500 400 300 TOTAL SAi FRANCECO L)S ANGEL:s ^ 200 100 50 40 30 OAKLAND SEATTLE *p3RTLAN0 Total Deposits, Loans and Discounts, Investments, and Bills Payable and Rediscounts of Reporting Member Banks SALTLAKE CITY 20 SPOKANE 10 I 1922 1 923 Savings Accounts in Banks in Seven Principal Cities of the Twelfth Federal Reserve District, 1922-1923 January 10th to $1,275,439,000 on February 7th. Their investments were increased by $13,561,000 during this period and now stand at $361,143,000, the highest point in the past two years. Nearly all of the reported increase in invest ments during the past year has occurred in holdings of United States Government securi ties. (E) Savings Accounts *— Number of Los Angeles... Oakland ...... Portland ..... Salt Lake City San Francisco. Seattle ........ Spokane ...... Total ....... *000 Omitted. Per Cent Increase Jan. 31.1923 over Jan 31.1922 Banks Jan. 31,1923 Dec. 30,1922 Jan. 31,1922 13 7 9 $268,448 82,712 43,717 24,050 362,600 54,187 15,428 $222,937 75,066 38,415 24,217 330,254 46,016 13,688 22.0 12.0 6 $271,882 84,051 44,172 24,711 368,477 55,260 15,524 75 $864,077 $851,142 $750,593 15.1 8 16 16 15.0 2.0 11.6 20.1 13.4 30 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S Increased loans to their customers by re porting city member banks has been accom panied by an irregular advance in the latter’s borrowings from this bank. Their rediscounts stood at $19,538,000 on February 7th, compared with $14,480,000 a month previous, an increase of $5,058,000. Country bank borrowings changed little during the month, and total re discounts on February 7th were $4,811,000 above the figure reported on January 10th. The latter figure, $32,874,000, was the smallest re ported since April, 1918. Total Reserves, Federal Reserve Note Circulation, Bills Discounted, and Investments, Federal Reserve Bank of San Francisco Federal Reserve note circulation declined by $19,158,000 during the month ending February 14th, and at $207,230,000 on that date was at the lowest point since 1919. Total reserves of this bank increased moderately during this period. The reserve ratio was 73.7 on February 14th compared with 69.7 on January 10th. There has been no change in the general level of interest rates in this district during the past month. In New York City the interest rate on prime commercial paper rose from A l/ 2 to 4^4 per cent during the week ending Febru ary 17th. During the first 10 days of the month time money rates in that market advanced from 4 % to 5 per cent. On February 21, 1923, the Federal Reserve banks of Boston and New York announced that, effective February 23, 1923, their redis count rates on all classes of paper would be advanced from 4 to A T / 2 per cent. These are the first advances in the rediscount rates of any of the twelve Federal Reserve banks since 1920, when rates of all of the banks reached the high est point in the history of the Federal Reserve System. Rediscount rates of the Federal Re serve banks of Boston and New York previous to the advance of February 23rd had been grad ually reduced from a 7 per cent rate announced in June, 1920, to the 4 per cent rate which has been in effect since June 22, 1922. This latter rate was as low as any ruling rate since the establishment of the Federal Reserve System in 1914. The new rate at these two banks, 4 y 2 per cent, is the same as that which prevailed from November, 1921, to June, 1922. The ruling rate of rediscount at all of the Federal Reserve banks except the Federal Reserve Bank of San Francisco is now 4^2 per cent. This bank’s rate is 4 per cent (February 23, 1923). The strong demand for bankers’ acceptances which characterized the market during the first two weeks of January continued practically undiminished during the four-week period end ing February 15th. The rate on prime bills re mained unchanged at 4 per cent. Reports re ceived by this bank from 35 of the principal ac cepting banks in the district show the following increases or decreases in the amount of bills purchased and accepted during January, 1923, compared with December, 1922, and January, 1922 . January, 1923, compared with Dec., 1922 Am ount of bills accepted . . . + 37.3 Am ount of bills bought ............+ 135.5 Am ount of bills held at close of m o n t h .....................................+ 30.7 Jan., 1922 + 1 3 6 .9 13 7 — 9.9 The principal commodities upon which these acceptances were based were grain, cotton, canned fruits, raisins, lumber, copra and kapoc. P R IN C IP A L R ESO U R C E A N D L IA B IL IT Y IT E M S OF R E P O R T IN G M E M B E R B A N K S IN R E S E R V E C IT IE S IN TW ELFT H F E D E R A L R E S E R V E D IS T R IC T Feb. 7, 1923 Number o f Reporting Banks ............................................. 66* Loans and Discounts (including rediscounts)........................................ $ 919,162,000 Jan. 10,1923 66* $ 902,427,000 Investments ............................................................................................................. 361,143,000 347,582,000 Cash in Vault and with Federal Reserve B ank...................................... 119,289,000 119,315,000 Total D eposits......................................................................................................... 1,275,439,000 1,261,296,000 Bills Payable and Rediscounts with Federal Reserve B an k........... 19,538,000 14,480,000 Feb. 8,1922 68* $ 819,085,000 309,663,000 97,817,000 1,117,652,000 21,071,000 *M ergers have reduced the number o f reporting banks, but comparisons o f resource and liability items have not been affected. FEDERAL RESERVE A G E N T A T S A N FRA NC ISCO 31 C O M P A R A T IV E ST A T EM E N T OF CO NDITIO N OF F E D E R A L R E S E R V E B A N K OF SA N FRA N CISCO AT CLO SE OF BUSIN ESS, F E B R U A R Y 14, 1923 RESOURCES Feb. 14,1923 Total R eserves........................................................................................................ $263,599,000 Jan. 10. 1923 Feb. 15. 1922 $259,788,000 $291,305,000 55,576,000 Bills D iscounted.................................................................................................... 42,951,000 32,874,000 Bills Bought in Open M arket......................................................................... 24,684,000 37,086,000 5,243,000 United States Government Securities.......................................................... 34,742,000 49,766,000 18,546,000 Total Earning A s s e ts ........................................................................................... $102,377,000 $ 98,809,000 $ 79,365,000 56,666,000 46,667,000 $436,180,000 $417,337,000 All Other Resources*......................................................................................... 54,182,000 T otal R esources................................................................................................. $420,158,000 L IA B IL IT IE S Capital and Surplus............................................................................................. $ 23,034,000 $ 23,008,000 $ 22,576,000 150,561,000 146,143,000 141,521,000 Federal Reserve Notes in Actual Circulation........................................ 207,230,000 Total D eposits......................................................................................................... 226,388,000 213,753,000 39,333,000 40,641,000 39,487,000 T otal Liabilities.................................................................................................. $420,158,000 $436,180,000 $417,337,000 A ll Other Liabilities*}-........................................................................................ ♦Includes “ Uncollected Item s” . . ................................................................... 42,572,000 45,440,000 39,365,000 flncludes “ Deferred Availability Item s” ................................................. 38,337,000 39,658,000 33,621,000 CH AN G ES IN T H E CO ST O F L IV IN G The cost of living, both in the United States ularly in foods, furniture, and house furnish and in five of the principal cities of this dis ings, have been relatively large. trict, turned definitely upward during 1922 ac The reported increase in the total cost of cording to reports of the United States Depart living follows the rise in wholesale prices, ment of Labor. The first increase, following which was observable during the whole of the long decline from the peak of June, 1920, 1922. According to the United States Bureau occurred in the period June to September, 1922, of Labor’s index numbers, they were 13.0 per when living costs in Oakland, Portland, and cent higher in January, 1923, than in January, 1922. San Francisco advanced slightly. Figures from Los Angeles and Seattle show a small decrease Changes in the cost of living in the United in this period. In the last quarter of the year States and in five cities of this district from the cost of living increased in all reporting December, 1914, to December, 1922, are sum cities of the district. Itemized figures showing marized in the accompanying table and chart. percentage changes from September, 1922, to PER CENT December, 1922, follow (minus sign denotes 1 2 0 decrease): no SANFRAfiC\SCO San Francisco IOO ..... LOSANGELES and Los United — “ « runILnN1/ 90 Oakland Angeles Seattle Portland States ——SEATTLE 8 0 à --H » U.S. Sc; Food ................. 3.1 4.0 1.7 3.2 4.8 y 70 Clothing .......... — .3 — .1 .1 .9 .1 60 . .2 — .1 — .06 .4 H ousing ......... — .2 7/ 50 V Fuel and Light .3 — .2 — 2.0 4.2 1.4 40 F u r n itu r e ................ 7 4.3 .6 1.2 2.6 30 / Miscellaneous .4 — .4 — .4 — .6 — .4 20 Sj Total ............. 1.0 1.2 .1 1.2 1.9 Little uniformity in the movement of sepa rate items of the family budget in the five cities can be noted. Declines, where they have per sisted, have been small, while advances, partic 10 DECEMI1ER 1914 PRICES O -1 0 ytf) (j® . . . . T yN «1jjj k^ ü<D ci® ftw uo UjN q (J) ijs o® 38 o 0» Changes in the Cost of Living shown as Percentage Increase« since December, 1914 C O ST O F LIVIN G IN T H E T W E L F T H FED ERA L RESERVE D ISTR IC T Percentage Increase or Decrease (—) December, 1914 to December. 1922, December. 1921 to December, 1922, and June, 1920 to December, 1922 \ r City Los A n g e le s... . P o r tla n d .......... . San Francisco (and Oakland) Seattle .............. . United States*. . Dec., 1921 to Dec.. 1922 39.4 34.3 .7 .9 — 26.9 — 35.1 78.0 54.9 38.8 33.9 46.6 — 1.1 — 28.4 — 33.8 — 33.0 85.4 74.2 71.5 2.6 — 2.2 June, 1920 to Dec., 1922 — Housing— ------N C ontinued City Los A n g e le s .. Portland ........ San Francisco (and Oakland) Seattle ............ United States* Dec., 1921 to Dec., 1922 June, 1920 to Dec.. 1922 Dec., 1914 to Dec., 1922 — 8.3 — 6.2 — 37.4 — 40.1 94.8 43.6 2.4 36.6 7.7 35.6 65.7 — 1 1 .1 3.9 — 11.6 — 10.1 — 7.6 — 7.1 — 36.2 — 36.4 — 40.3 30.0 63.1 61.9 3.3 — 3.6 .3 18.8 - - 6.6 52.5 59.6 86.4 — 7.7 — 5.5 2.9 3.6 — 3.7 8.4 Dec., 1921 to Dec., 1922 r .2 20.0 Dec.. 1921 to Dec.. 1922 Dec., 1921 to Dec.. 1922 — — — — — 4.0 8.5 3.9 5.5 4.4 June 1920 to Dec., 1922 — 21.2 — 27.5 — 26.6 — 26.4 — 28.8 Dec.. 1914 to Dec., 1922 Dec., 1921 to Dec., 1922 101.2 .8 79.4 84.2 96.4 100.5 — .3 — 1.3 — 3.0 — 3.0 - - June, 1920 to Dec., 1922 Dec., 1914 to Dec., 1922 7.8 74.5 56.1 58.8 66.7 69.5 .1 2.5 3.1 - - .4 Dec., 1921 to Dec.. 1922 — — — — — 1.0 1.3 2.9 2.8 2.7 *Base year 1913. June, 1920 to Dec.. 1922 12.8 'T-i-l f Dec. 1914 to Dec., 1922 138.1 102.9 105.4 136.1 . 108.2 Fuel and Light------\ Dec., 1914 to Dec.. 1922 Dec., 1914 o Dec., 1922 r COST OF LIVING, t----- ----------- \ June, 1920 to Dec., 1922 r Dec., 1914 to Dec.» 1922 Those desiring this review sent them regularly will receive it without charge upon application. June, 1920 to Dec.. 1922 — 13.4 — 22.1 — 18.9 — 20.8 — 21.6
@FedFRASER