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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 Vol. X San Francisco, California, February 20, 1926 No. 2 S U M M A R Y O F N A T IO N A L C O N D IT IO N S Industrial activity in January was in slightly smaller volume than in December, and the dis tribution of commodities showed a seasonal de cline. The level of prices remained practically unchanged. Production. The Federal Reserve Board’s index of production in selected basic industries was about one per cent lower in January than in December. Output of iron and steel, copper, and zinc increased, while activity in the woolen and petroleum industries, and mill consumption of cotton, declined. The cut of lumber, and bituminous coal production increased less than is usual at this season of the year. Automobile production, not included in the index, was slightly smaller than in December, 1925, but considerably larger than in January, 1925. Fac tory employment changed but little in January, 1926, but earnings of workers decreased con siderably owing to the closing of plants in most industries at the opening of the year for in ventory taking and repairs. The volume of building contracts awarded in January, 1926, although seasonally less than in December, 1925, exceeded that of any previous January on record. Contracts awarded were particularly large in the New York and Atlanta districts. Trade. Sales of department stores and of mail order houses showed more than the usual seasonal decline in January, 1926, but were larger than in January of last year. Wholesale trade declined considerably and was in. smaller volume than a year ago. Stocks at department stores showed more than the usual increase in January, and were about 11 per cent larger than at the end of January, 1925. Freight car PER CENT PER CENT 1922 1923 1924 1925 1926 P R O D U C T IO N I N B A S IC IN D U S T R IE S W H O L E S A L E PR IC E S Index of 22 basic commodities corrected for seasonal variation (1919= 100). Latest figure, January, 120. Index of U . S. Bureau of Labor Statistics (1 9 1 3 = 100, base adopted by Bureau). Latest figure, January, 156. T h o s e d e s ir in g t h i s r e v ie w s e n t th 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 lic a t io n . 10 February, 1926 M O N T H L Y REVIEW OF BUSINESS CONDITIONS loadings declined in January, 1926, and the daily average for the month was approximately the same as a year earlier. Prices. Wholesale prices, as measured by the index number of the Bureau of Labor Sta tistics, remained practically unchanged from December to January. Prices of grains, coke, and paper and pulp increased, while prices of and in the early part of February the volume of loans and investments at these banks in creased considerably. The increase was largely in loans for commercial purposes, which, after declining almost continuously from their sea sonal peak early in October, advanced by more than $50,000,000 in February. The growth in commercial demand for credit throughout the M E M B E R B A N K C R E D IT M O N E Y RATES Monthly averages of weekly figures for banks in 101 leading cities. Latest figures are averages for first three weekly report dates in February. W eekly rates in New Y ork money market: commercial paper rate on 4- to 6-months paper and acceptance rate on 90-day paper. dairy products, cotton goods, bituminous coal and rubber declined. In the first three weeks of February, there was a decline in prices of grains and, following the settlement of the strike in the anthracite region, a drop in prices of bituminous coal and coke. Price advances were shown for refined sugar, copper and petroleum. Bank Credit. A t member banks in leading cities, the seasonal decline in the demand for credit, which began at the turn of the year, came to an end toward the close of January, country, together with some increase in cur rency requirements, was reflected in a with drawal of funds from the New York money market and was a factor in the increase in de mand for reserve bank credit after the end of January. Reserve banks’ holdings of bills and securities increased by about $66,000,000 be tween January 27th and February 17th. As the result of the withdrawal of funds from New York, rates on call loans became somewhat firmer in February. Commercial paper rates, however, were slightly lower. T W E L F T H F E D E R A L R E S E R V E D IS T R IC T C O N D IT IO N S Statistical Summary— Jan., 1926 D ec., 1925 Jan., 1925 D ec., 1924 Jan., 1926# compared with Jan., D ec., 1925 1925 10.1 Bank Debits— 21 cities*................................................. $3,079,742 $3,230,574 $2,797,011 $2,703,044 148° 155 135° 123° 14.8 Bank Debits— Index N um bersf— 20 cities........... Building Permits— 20 cities.......................................... ! $29,165,741 $37,071,485 $31,464,205 $31,478,701 -- 7.3 164 147 148 153 0.7 Retail Sales— 32 stores— Index N u m b ersf........... 8.5 Savings Deposits— 69 b an k s*§.................................... $1,146,713 $1,155,008 $1,056,682° $1,054,972° 491,625 576,995 554,303° 492,629° ■— 11.3 Lumber Production— 4 associations— board feet* 615,147 604,622 620,958 606,294 1.7 Petroleum Production^— California— barrels . . . . 483,092 396,709 489,357 530,949 — 18.9 Flour Production— 16 companies— barrels........... 10.2 Reporting Member Bank Loans and Discounts||* $1,180,645 $1,186,206 $1,071,730 $1,040,889 7.9 Reporting Member Bank Deposits||*...................... $1,634,715 $1,633,464 $1,514,817 $1,486,787 $22,555 $25,227 $7,614 $17,747 27.1 Federal Reserve Bank Discounts^*........................... 75.6 75.5 74.0 79.5 5.0 Federal Reserve Bank Reserve Ratiofl.................... — 4.7 4.7 — 21.3 — 9.8 — 0.7 — 14.8 — 0.9 — 17.9 — 0.5 0.1 — 10.6 5.3 *In thousands. tAdjusted for seasonal variations— 1919 monthly average=100. $Daily average production. §Not comparable with figures published in previous reviews. ||February 10, and January 6, 1926, February 11, and January 7, 1925. flFebruary 17, and January 13, 1926, February 18, and January 14, 1925. #Percentage increase or decrease(— ). °Revised. February, 1926 11 FEDERAL RESERVE AGENT AT SAN FRANCISCO Agricultural Situation Mild winter weather and ample rainfall were reported from most parts of the Twelfth Fed eral Reserve District during the last two weeks of January and the first weeks of February. Seasonal measurements of rainfall at midFebruary approximated normal in the import ant agricultural areas of the district, except in parts of the Pacific Northwest, where some de ficiency was reported. As a result of recent weather changes there has been a measurable improvement in condition of fall-sown grain crops, of livestock pastures and ranges, and in the whole physical aspect of the agricultural situation. R A I N F A L L — Twelith District July 1,1925 July 1,1924 A rizona: Flagstaff ........................ Phoenix ........................... C alifornia: Eureka ............................. Fresno ............................. Los Angeles ................. Red Bluff ...................... Sacramento .................... San D iego ...................... San Francisco ............ San Jose ........................ San Luis O b isp o .......... Id a h o : Boise ................................ Lewiston ........................ N ev a d a : Reno ................................. O re g o n : Baker City ................... Portland .......................... Roseburg ....................... U ta h : Salt Lake C ity ............ W ash in gton : Seattle ............................. Spokane ......................... Julyl Feb. 16,1926 (Actual) (inches) 14.7 4.1 Feb. 16,1925 (Actual) (inches) 15.5 2.6 Feb. 16 (Norm al) (inches) 16.2 6.6 22.6 5.3 9.6 16.2 10.6 9.4 14.7 11.1 13.9 27.8 4.8 3.3 17.8 11.6 2.4 20.0 7.9 9.7 28.6 6.0 9.9 16.0 12.7 6.4 14.9 9.5 12.6 7.5 7.8 8.2 8.9 7.6 8.4 5.0 4.1 6.7 5.4 21.4 25.7 5.1 28.7 32.1 7.3 30.8 23.5 10.1 9.3 8.5 16.4 8.1 24.2 10.6 24.6 12.2 volume in 1925 than in 1924, although a smaller acreage was harvested in the later year. Large yields in Idaho and Utah more than offset a decrease in production in California, the dis trict’s remaining important sugar beet grow ing state. SU G AR BEETS* t-----Twelfth District — ^ 1925 t----- United States------ \ 19251924 19241923 1923 Acreage Planted. 209 Acreage líarvested' . . . . 187 Production .......... 1,932 Sugar Content ..1 7 .1 4 % 253 201 204 1,575 1 7 .4 0 % 776 187 667 2,034 6,932 1 6 .5 9 % 1 5 .1 2 % 925 817 7,075 1 7 .1 9 % 732 657 6,565 1 5.34% *000 omitted. The number of sheep and of milk cows on farms and ranges in the Twelfth District in creased during the year ending January 1,1926, while the number of other cattle (chiefly beef cattle) and swine declined during the same period, according to estimates published by the United States Department of Agriculture. The figures are given in the accompanying table together with comparable figures for the United States as a whole. LIVESTOCK ON FARMS A N D RANGES* f— Twelfth District— ^ 1926 M ilk Cows . Other Cattle Sheep ............ Swine ................. January 1st, 1925 1924 1,401 4,314 12,582 1,198 1,397 4,532 11,984 1,390 1,535 4,652 12,130 1,859 t------- United States------- \ 1926 22,290 37,539 40,748 51,223 January 1st, 1925 1924 22,523 39,627 39,390 55,769 24,786 41,720 38,300 66,130 *000 omitted. Citrus fruit crops in California were slightly damaged by frost during January. Serious losses were prevented, however, by prompt use of orchard heating devices following the re ceipt, by growers, of warnings of the approach ing cold weather, as issued by the United States Weather Bureau. Estimates published by the United States Department of Agriculture indicate that the sugar beet crop of this district was larger in Livestock of the district generally are re ported to be in good condition. In the early lambing sections, particularly California, lamb ing is proceeding satisfactorily. In d ustrial Activity Seasonal declines in general industrial ac tivity and in volume of employment were re ported in the Twelfth Federal Reserve Dis trict during January. Available statistical and non-statistical evidence indicated that both in dustrial activity and volume of employment were at approximately the levels of a year ago. Value of building permits issued in 20 prin cipal cities of the district declined 21.3 per cent during January, 1926, as compared with De- (A ) Agricultural Marketing Activity— Monthly t-------- Exports--------- t----------- Carlot Shipments-------- » Livestock Receipts Wheat* Barley* Apples* at Eight Markets in 12th District Portland and San 12th Orangesf Lemonsf Cattle Puget Sound Francisco Dist. Calif. Calif. and (1000 bu.) (1000 bu.) (cars) (cars) (cars) Calves Hogs Sheep January, 1926.............................................. Decem ber, 1925.............................................. January— 5-year average ........................... (1919-1923) Cumulative 2,219 1,103° 1,995 529 673° 583 2,823 4,206 3,779$ r--------------------— Crop Year 10,115 9,993 41,529 (10.1) (21.8) (76.3) T o January 31, 1925.................................... 16,076 6,775 34,020 (24.0) (29.7) (79.1) Five-year average to January 3 1 .......... 17,823 8,937 39,926$ _____ (1919-1923) (15.4) (22.2) (78.8) T o January 31, 1926.................................... 3,380 4,310 3,273 644 672 650 ---------------------- >> 11,099 (21.8) 10,769 (22.4) 9,359 (19.8) 1,755 (11.7) 1,965 (17.1) 1,478 (13.1) 121,342 119,935 105,125{{ 225,562 234,920 237,016|| 155,741 172,372 188,609|| Goltf Storage Holdings^ 12th District Butter Eggs (1000 (1000 lbs.) 1,743 2,164 930ff cases) 11 78 4ÏÏ t------------ Calendar Year —— 121,342 225,562 155,741 126,301 316,990 171,656° 105,125|[ 237,016(1 188,6098 Figures in parentheses indicate percentage of new crop only. *Season begins July 1st. fSeason begins November 1st. $Four-year average (1923-1926). §At end of month. ||1921-1925. 111922-1926. "Revised. November, 1925, wheat exports published in the January, 1926, Review should have read 1,057 instead of 1,179. 12 M O N T H L Y REVIEW OF BUSINESS CONDITIONS cember, 1925, and was 7.3 per cent less than in January, 1925. The usual seasonal decrease from December to January is estimated at 22.8 per cent. Large gains in value of permits issued in San Francisco and Seattle during January, 1926, as compared with January, 1925, were more than offset by decreases in Fresno, Los Angeles, and Portland. The January figure re ported by Los Angeles was the lowest monthly figure reported for that city in four years. If figures of Los Angeles be eliminated from the total of the 20 cities, gains of 9.5 per cent and 9.4 per cent are shown for January, 1926, as compared with December, 1925, and January, 1925, respectively. The United States Bureau of Labor Statis tics’ index number of building materials prices stood at 178 during January, 1926, compared with 177 in December, 1925, and 179 in Janu ary, 1925. The Aberthaw index of the total cost of labor and building materials employed in the construction of a reinforced concrete factory building remained at 195 in January, 1926, compared with 197 in January, 1925. During January, 1926, lumber production at reporting mills of four associations in this dis trict was less than during December, 1925, and January, 1925, by 14.8 per cent and 11.3 per cent, respectively, and was smaller in volume than in any month since February, 1923. Volume of new orders received during the month was 2.8 per cent less than volume of orders booked during December, 1925, but was 10.8 per cent greater than in January, 1925. Orders received during January, 1926, exceeded shipments, which in turn exceeded production, so that stocks of lumber held by mills de creased and unfilled orders increased. LUM BER A C T IV IT Y * Jan., 1926 Dec., 1925 Jan., 1925 Dec., 1924 (board feet) (board feet) (board feet) (board feet) Production ........................... 491,625 576,995 554,303t 492,629f 643,419 623,259f 572,645f Shipments ............................ 604,924 654,124 573,619f 6 34,115t Orders ................................... 635,691 Unfilled O r d e r s ................. 476,856 404,969 462,630t 467,784f N o. of M ills R ep o r tin g .. 179 175 1831 183t *A s reported by four associations, 000 omitted except in case of number of mills reporting. fR evised. S o u rce: N ational Lum ber M anufacturers Association. (B) Building Permits— Berkeley ...................... Boise ............................. Fresno ......................... L ong Beach ............ Los Angeles ............ Oakland ...................... Ogden ........................... Pasadena ................... Phoenix ................... Portland ...................... Reno ............................. Sacramento ............... Salt Lake C ity .......... San D iego ................. San Francisco San Jose ...................... Seattle ........................ Spokane ...................... Stockton ..................... Tacom a ...................... District .................. January, 1926 Value No. $ 943,339 299 22,458 28 75,176 85 814,450 430 6,973,252 3,236 2,895,253 914 15,800 9 1,295,207 241 397,980 111 1,985,660 944 43,700 21 457,312 195 137,346 48 1,252,953 626 5,153,504 786 391,445 134 834 5,003,660 163,381 92 156,190 82 192 987,675 9,307 $29,165,741 January, 1925 Value No. $ 810,251 284 14,381 29 103 758,008 1,240,010 406 11,171,162 3,908 1,214 2,850,970 11 51,600 257 878,465 115 341,158 2,942,410 1,090 21 97,740 592,479 238 42 128,200 752 1,868,228 875 3,403,623 116 219,325 859 2,715,790 84 99,065 101 273,690 292 1,007,650 10,797 $31,464,205 February, 1926 During January, 1926, average daily produc tion of petroleum in California decreased slightly as compared with December, 1925, but was 1.7 per cent higher than in January, 1925. Indicated consumption increased during Janu ary, 1926, but was less than production, and stored stocks reached a new high point of 127,374,984 barrels on January 31st. PETROLEUM —California Indicated Average Stored Average Daily Stocks at Daily Consumption End of Production (Shipments) Month 1926. 1925. 1925. 1923* .. .. .. .. (barrels) 615,147 620,958 604,622 858,700 (barrels) 609,338 589,085 530,688 t ^ New W ells—N Daily Produc tion Number Opened (barrels) 127,374,984 127,194,894 100,121,136 t (barrels) 33,548 22,761 21,286 139,960 73 55 62 93 *Peak of production, f Comparable figures not available. Source : Am erican Petroleum Institute. Figures of national production of non-ferrous metals follow : N O N -FE RR O U S M E T A L S —National Production Jan., 1926 Copper (lb s.) (m ine pro duction) ..................................142,628,000 Silver (o z.) (commercial bars) ......................................... 5,401,000 Zinc (tons) ( s la b )................. 56,389 Dec., 1925 Jan., 1925 138,356,000 144,544,000 4,937,000 53,794 5,374,000 50,386 Seasonal decline in flour milling activity con tinued during January, 1926. Output of 16 representative milling companies of the dis trict, which report regularly to this bank, was approximately 18 per cent smaller in volume than during either December or January, 1925. As compared with the five-year (1921-1925) average for the month, production during Janu ary, 1926, showed a decline of 28.1 per cent. Millers’ stocks of flour increased during Janu ary, but on February 1st were 13.6 per cent smaller than the five-year average of stocks held on that date. Reported holdings of wheat (C) Employment— t--------Cahfonaia--------V No. of No. Employees —> No. of Jan., Dec., of Industries Firms 1926 1925 Firms All Industries.......... 697 144,511 149,279 105 ( - 3 .2 ) — —... - N No. of <— Employees —» Jan., Dec., 1926 1925 17,392 18,565 ( - 6 .3 ) Stone, Clay and Glass Products. 43 7,237 (— 2.0) 7,387 5 209 (— 9.5) 231 Lum ber and W o o d M anufactures . . 118 25,041 (— 8.4) 2,381 (— 2.1) 27,328 47 4 14,212 ( — 3.6) 870 (— 7.2) 14,748 2,432 13 938 Clothing, M illinery and Laundering. 60 7,624 (— 1.5) 7,740 8 535 (— 3.4) 554 Food, Beverages and T o b a c c o ... 152 22,847 (— 7.4) 24,674 32 1,146 (— 29.4) 1,623 W ater, Ligh t and Power ................. 5 8,947 9,247 (— 3.2) 68,372 68,542 (— 0.2) 12 2,062 Miscellaneous . . . . 1,929 9 420 471 (6.9) (— 10.8) ^Includes the following industries: metals, m achinery and con veyances ; leather and rubber g o o d s ; chemicals, oils and p a in ts; printing and paper goods. Figures in parentheses represent percentage changes from D e cember. O ther Ind ustries*. 294 February, 1926 FEDERAL RESERVE AG EN T AT SAN FRANCISCO at the mills decreased 21.2 per cent during January, but on February 1, 1926, they were larger than the five-year average holdings on February 1st. F L O U R M IL L IN G * Five-Year Average Jan., 1921-1925 Jan., 1925 551,718 489,357 Jan., 1926 D ec., 1925 O utput ( b b l s . ) . . . . 396,709 483,092 Stocksf 556,007 Flour ( b b l s . ) - . . 446,027 412,192 2,731,217 4,022,593 W h eat ( b u .) ____ 3,169,868 * A s reported by 16 companies, f A s of the first day of the following month. 516,283 2,889,217 General Business and Trade General business activity in this district con tinued at relatively high levels during January. The volume of trade decreased seasonally dur ing the month, but was larger than in January, 1925. Debits to individual accounts (bank debits) at banks in 20 principal clearing house centers declined slightly during January, 1926, but the decrease was less than the usual seasonal de crease for that month. This bank’s index of bank debits, adjusted for seasonal variations, advanced from 148 in December to 155 in Janu ary, 1926 (1919 average=100). In January, 1925, it stood at 135. INDEX NUMBERS 13 Trade at retail, as reported by 32 department stores in seven principal cities of the district, was 49 per cent smaller in value during Janu ary, 1926, than during December, 1925. This decrease compares with a usual seasonal de cline of approximately 44 per cent from De cember to January. This bank’s index of de partment store sales, adjusted for seasonal variations, stood at 148 in January, 1926, 164 in December, 1925, and 147 in January, 1925. Stocks of goods held by reporting stores in creased 1.3 per cent in value during January, and on January 31, 1926, were 4.6 per cent greater in value than on January 31, 1925. The indicated stock turnover, 2.8 times per year in January, 1926, compares with an indicated turnover of 5.2 and 2.9 times per year in De cember, 1925, and January, 1925, respectively. INDEX NUM BER S Index of 32 Stores in 7 cities (1919 monthly average=100). Latest figures, January, with adjustment, 148; without adjustment, 130. D E P A R T M E N T S T O R E S A L E S — Index Numbers (1919 Monthly Avera^e=100) Seasonal Adjustment Oak Los Angeles land BANK D E B IT S -T W E L F T H D ISTRICT Index for 20 principal cities, Phoenix, Arizona, not included, (1919 monthly average=100). Latest figures, January, with _____ adjustment, 155; without adjustment, 158. 1919. 1920. 1921. 1922. 1923. 1924. 1925. 1925. 1925. 1925. 1925. 1926. *Fitted to monthly averages for years 1919-1925, inclusive, by method of least squares. (D) Bank Debits*Berkeley .................................. . Boise ........................................ Fresno ...................................... L o n g Beach ............................ L o s A n geles .......................... Oakland .................................. O gden ....................................... Pasadena ............................... Phoenix .................................. Portland ................................. Reno ......................................... Sacramento .......................... Salt Lake C ity ........................ San D iego ............................. San Francisco ..................... San Jose ................................ Seattle ...................................... Spokane .................................. Stockton ................................. Tacom a .................................... Y akima ................................... District ............................. . *000 omitted. January, 1926 $ 21,714 15,534 39,469 55,779 884,893 167,449 32,921 41,205 27,590 167,646 9,379 35,320 79,848 65,892 1,053,360 28,115 206,479 56,466 30,753 46,881 13,049 $3,079,742 January, 1925 $ 20,759 13,906 31,322 54,332 818,585 146,962 28,268 38,377 27,663 153,573 8,055 44,889 74,568 52,904 919,228 27,890 196,406 53,996 27,921 44,713 12,694 $2,797,011 . . . . . . . . . . . . 71 126 142 138 164 213 203 193 238 230 361 210 77 113 108 87 109 115 119 133 178 145 268 124 San Fran cisco Salt Lake City 77 118 109 102 115 119 115 130 148 153 235 113 76 92 97 77 87 86 91 113 139 122 191 86 87 133 124 115 130 135 130 140 137 148 146 128 92 112 117 93 105 104 111 114 117 115 123 104 Spo kane Dis trict 75 93 72 64 75 76 78 107 116 102 177 75 65 89 82 70 75 74 69 100 131 98 157 70 74 111 109 100 117 133 129 141 170 159 255 130 100 124 96 85 100 102 105 98 105 104 112 99 91 123 114 97 105 104 96 97 98 93 104 97 85 127 124 114 133 151 147 153 158 161 164 148 Seattle asonal Adjustment Jan., Jan., Jan., Jan., Jan., Sept., O ct., N ov., D ec., Jan., 1919. 1920. 1921. 1922. 1923. 1924. 1925. 1925. 1925. 1925. 1925. 1926. . . . . . . . . . . . . 75 133 149 146 173 224 214 223 232 231 239 221 90 132 127 102 128 135 139 140 164 143 160 145 iue of sales of 167 wholesale firms in eleven lines of business decreased seasonally during January, 1926, but was 1 per cent greater 14 M O N T H L Y REVIEW OF b u s i n e s s than in January, 1925, increased sales of six of the eleven reporting lines offsetting decreases in the remaining five lines. The wholesale price level was 2.5 per cent lower during January, 1926, than in January, 1925. sale, prepared by the United States Bureau of Labor Statistics, stood at 156.0 for January, 1926, compared with 156.3 for December, 1925, 160.4 for August, 1925, the recent high point, and 160.0 for January, 1925. All of the groups comprising the index, except fuels, building materials, and miscellaneous commodities showed price declines during January, 1926, During November and December, 1925, and January, 1926, prices of agricultural and of nonagricultural commodities moved together and the purchasing power of farm crops remained unchanged at 87 (August, 1909-July, 1914, monthly average=100). This was in contrast to the movement of these two series during September and October of 1925 when prices of agricultural commodities declined and prices of non-agricultural commodities were un changed, the result being a decrease in pur chasing power of farm products from 93 in August, 1925, the highest point reached since June, 1920, to 87 in November, 1925. Decline in prices of agricultural commodi ties, excepting the grains, was general during January, but early in February grain prices participated in the downward movement. The weekly average price for May contract wheat at Chicago ranged from $ 1.7 3 ^ to $1.76 on February 5, 1926, compared with a range of from $1.76 to $1.79^4 on January 5, 1926. On February 16, 1926, May contract wheat was quoted at $ 1.6 6 ^ -$ 1 .6 8 ^ which compares with quotations of $1.83-$1.87^4 on February 16, 1925. Prices of cattle and lambs at Chicago con tinued to decline and prices of hogs continued to advance during the month. The weekly average price of hogs at Chicago advanced to $12.80 per 100 pounds during the week ending February 6, 1926, an increase of $1.40 over the average ($11.40) reached during the week end ing January 6, 1926. Prices of sheep advanced slightly during January. W H OLESALE TRADE Percentage increase or decrease (— ) ! (------------in Value of Sales------------ N Jan., 1926 Jan., 1926 D ec., 1925 compared compared compared N o. of with with with Firms Jan., 1925 D ec., 1925 D e c.,1924 * * * Im plem ents. Agricultural A u tom obile Supplies Autom obile T i r e s f ............. D rugs ....................................... D ry Goods ........................... Electrical Supplies .......... Furniture ............................... Groceries ............................... Hardw are ............................... Shoes ....................................... Stationery ............................. 12 19 6 15 9 16 21 18 11 24 — 11.9 — 25.3 9.3 11.8 — 32.6 — 16.3 1.6 3.7 4.6 — 19.1 — 3.8 — 14.0 7.4 — 4.7 — 3.2 7.1 — 5.9 9.1 8.2 — 0.5 5.8 — 18.7 6.0 — 4.6 17.5 22.2 — 5.2 7.7 12.7 9.6 *Tem porarily not available. fT h ese figures are probably in fluenced by the discontinuance by certain of the larger com panies of “ spring dating” sales, or the practice of advancing credit on sales made in autumn months until M arch, April, and M ay of the following year. On January 31, 1926, savings deposits at 69 banks in seven principal cities of the district were 0.7 per cent smaller in amount than on December 31, 1925, but 8.5 per cent larger than on January 31, 1925. Jan.31, 1926t compared with Jan. Jan. Dec. 31, 31, 31, 1925* 1925 1925 $351,429§ 12.0 — 0.2 9 4,633§ 5.3 — 1.1 53,132§ 2.8 — 0.1 5.7 4.1 29,493 436,366 7.6 — 1.4 71,944 9.3 — 0.4 19,685 -— 0.7 — 2.3 S A V I N G S D E P O S IT S Number Jan. of 31, Banks 1926* $393,515 L o s Angeles . . 13 OaklandJ . . . . 7 99,651 7 Portland|| . . . . 54,630 Salt Lake City 8 31,177 San Francisco. 14 469,585 78,616 S e a t t l e ............... 14 19,539 6 Spokane .......... Total II *000 omitted. one bank Oakland published Dec. 31, 1925* $394,181 100,796 54,681 29,935 476,445 78,971 19,999 February, 192t CONDITIONS 69 $1,146,713 $1,155,008 $1,056,682§ 8.5 — 0.7 fPercentage increase or decrease (— ). ¿Includes in Berkeley which was formerly a branch of an bank. §Revised. ||Not comparable with figures in previous Reviews. Prices That stability in the general price level which characterized the year 1925, continued during January and early February of 1926. The index of prices of 404 commodities at whole (E ) Commodity Prices— Commodity W holesale Prices (U . S. Bureau of L abor) 1 9 1 3 = 1 0 0 ...................................... Purchasing Power of Farm Products (U . S. Department of A griculture)* H o g s ................................W eek ly average price at C hicago..................................... Lam bs ............................. W eek ly average price at C hicago..................................... W h ea t ............................. Chicago contract price for M ay w heat......................... Cotton ............................. M iddling U plands— W eek ly range of spot quotaW o o l ................................Average of 98 quotations^at B oston. Sugar ................................Beet granulated f. o. b. .W in esa p s, medium to large extra fancy f. Apples ............... Prunes Raisins .............. .............. February 5,1926 156.0 87 $9.65 12.80 14.50 1 .7 3 ^ -1 .7 6 One Month Ago 156.3 87 $9.40 11.40 16.00 1.76—1.795^2 One Year Ago 160.0 88 $9.25 10.60 18.20 1.85—1.9454 20.02 -2 0 .3 4 0 77.870 5 .3 5 0 t 1 9.82-20.000 77.570 5.100 2 3 .7 5 -2 4 .5 5 0 102.040 6.050 box lb. 1.75 .0 9 - .0 9 ^ 1 .75-2.0 0 . 0 9 - .0 9 ^ 2.75 . 1 0 - .1 0 ^ lb. lb. lb. oz. lb. .0734 13.8220 9.2550 67.7950 8.3040 31.32 13.8660 9.3100 68.8890 8.5650 30.26 Unit 100 lbs. 100 lbs. 100 lbs. bu. lb. lb. lb. o. b. .S ize 4 0 /5 0 in 25-lb. boxes f. o. b. California............ .T hom p son Seedless Bulk in 25-lb. boxes f. o. b. Copper ............................ Electrolytic monthly average at N ew Y o r k . . . . Lead ................................. M onthly average at N ew Y o r k .................................. Silver .............................. M onth ly average at N ew Y o r k ................................... Zinc ..................................M onthly average at St. L o u is................................ Lumber (S o ftw o o d )..W e e k ly Index United S ta te s t.................................... .0 7 3 4 .0 77/ 8 14.7090 10.1690 68.4470 7.7380 31.68 *Ratio of farm prices (August, 1909-July, 1914=100) to wholesale prices of non-agricultural commodities (1910-1914=100). tFebruary 17, 1926. $As published by “ The Lumber Manufacturer and Dealer.” February, 1926 15 FEDERAL RESERVE AG EN T A T SAN FRANCISCO Cotton prices fluctuated little during Janu ary, but the range of prices for spot middling uplands cotton at New Orleans from January 29th, to February 4th (20.02^-20.34^), showed a slight advance over the range of 19.82^-20.00^ during the week ending December 31, 1925. A year ago during the week ending February 5, 1925, quotations ranged from 23.75^ to 24.55^. An average of 98 wool quotations on the Bos ton market stood at 77.87^ on February 5th, a slight advance over the average (77.57^) re ported on January 5, 1926, but - a decline of 24.17^ from the average price of 102.04^ reached on February 5, 1925. The price of refined beet sugar at San Fran cisco advanced slightly during January and at $5.55 per hundred pounds on February 1st was $0.45 higher than on January 1st. On February 1, 1925, the price stood at $6.05. On February 17, 1926, refined beet sugar was quoted at $5.35 per hundred pounds, a decline of $0.20 from the figure quoted on February 1, 1926. Monthly average prices for copper, lead and zinc were 0.3 per cent, 0.6 per cent, and 3.0 per cent lower, respectively, during January, 1926, than during December, 1925. Average prices for copper and lead were 6.0 per cent and 9.0 per cent lower, respectively, and the average price for zinc was 7.3 per cent higher in Janu ary, 1926, than in January, 1925. the early part of February, normal seasonal movements. On February 10, 1926, these loans amounted to $1,181,000,000, and were $109,000,000 or 10.2 per cent larger than a year ago. Investment holdings of reporting banks in creased, and their borrowings from the Re serve Bank decreased during the month, evi dence of an abundance of available funds. R E P O R T IN G M E M B E R B A N K S * — Twelfth District (In millions of dollars, percentage changes in parentheses.) Condition t------------ Changes from-------------s Feb. 10, One Year One Month 1926 Ago Ago T otal L oans ...................... . 1,181 909 Comm ercial Loans ......... 272 Loans on Securities........., . 467 Investm ents ......................, . T otal Loans and In vest ments ............................... . 1,648 N et Dem and D e p o s it s ... . 804 B orrow ings from Federal Reserve B a n k ............... 14 — — + + 6 7 1 10 ( ( ( ( 0.5) 0.7) 0.4) 2.1) + 109 (10.2) + 62 ( 7.3) + 47 (21.0) + 26 ( 5.8) + 4 ( 0.2) — 3 ( 0.4) + 135 ( 8.9) — 1 ( 0.1) — 10 (41.6) + 4 (40.6) *Total resources o f reporting banks are approxim ately 50 per cent of total resources of all banks, and 75 per cent of total resources of all m em ber banks in T w elfth Federal Reserve District. R eportin g banks em brace m em ber banks in Los A ngeles, Oakland, O gden, Portland, Salt L ake City, San F rancisco, Seattle, Spokane, and Tacom a. There was a seasonal decrease in demand for credit at the Federal Reserve. Bank of San Francisco during the five weeks ending Febru ary 17, 1926, and holdings of all classes of bills MILLIONS OF D OLLARS 300 T O T A L R E S E R V E S /^ i Banking and Credit Situation Changes in the banking and credit situation in the Twelfth Federal Reserve District dur ing January and early February have been largely seasonal in character. Current bank statements revealed a sound credit position and general activity in business. MILLIONS OF DOLLARS 20 0 F E D E R A L R lE S E R V E C IR C U L A T IO H NOTE B IL L S D IS C O U N T E D * 100 / Vv ' ' IN V E S T M E N IT S 1922 1923 1924 1925 1926 R E S E R V E B A N K C R E D I T — T W E L F T H D IS T R I C T Figures for Federal Reserve Bank of San Francisco, as of last W ednes day of each month. Latest figures, January 27. and securities declined. Currency demands also decreased seasonally during the period, and volume of Federal reserve notes in circu lation was less by $8,000,000 on February 17th than on January 13th. As a result of the above movements the bank’s holdings of reserve cash increased from $282,000,000 to nearly $294,000,000 and the reserve ratio rose from 75.6 to 79.5. M E M B E R B A N K C R E D I T — T W E L F T H D IS T R I C T Figures for 67 member banks in leading cities, as of last Wednesday of each month. Latest figures, January 27. Total loans of reporting city member banks declined during January, and increased during F E D E R A L R E SE R V E B A N K O F SA N F R A N C IS C O (in millions of dollars, percentage changes in parentheses.) C on dition /■ -Changes from— Feb. 17, One Month One Year 1926 Ago A go T otal Bills and Securities. Bills D iscounted ................. U nited States Securities.. . Bills B ough t ........................ Total Reserves .................... T otal D eposits .................... Federal Reserve N ote C irculation ........................ 91 23 45 22 294 181 —14 (13.8) 3 (10.6) — 5 ( 9.6) — 7 (23.4) + 11 ( 4.0) — '11 + 5 + 6 — 21 189 — 8 ( 4.0) — 6 ( 2.9) + 4 ( 2.0) (10.5) (27.1) (16.0) (48.6) + 22 ( 8.0) + 15 ( 9.0)