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M
O
N
T
H
L
Y
R
E
V
I E
W
OF
BUSINESS CONDITIONS
ISAAC B. NEWTON, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco
Vol. XIII
San Francisco, California, February 20,1929
No. 2
SU M M ARY OF N A T IO N A L CONDITIONS
Prepared by the Federal Reserve Board
Volume of manufacturing and mining in
creased in January and the first part of Febru
ary, while building activity continued to de
cline.
Wholesale commodity prices rose
slightly. The amount of Reserve bank credit
in use declined between the middle of January
and the middle of February, reflecting chiefly a
reduction in reserve balances of member banks.
Production. Industrial production increased
in January and continued larger than a year
ago. Output of pig iron, steel ingots, and auto
mobiles was in record volume for January. The
high rate of steel activity reflected large pur
chases by automobile manufacturers and in
creased demand from railroads. Activity of
textile mills increased considerably in January.
Domestic output of refined copper, while con
tinuing in large volume, was somewhat lower
than in December. Output of copper ore, bitu
minous coal, and petroleum was exceptionally
large in January, and output of anthracite coal
and tin also increased. Preliminary reports in
dicate the maintenance of a high level of in
dustrial activity during the first part of Febru
ary. Steel plants operated at a high percentage
of capacity; the output of coal continued large;
and employment in Detroit factories increased.
Production of petroleum, however, decreased
slightly in mid-February. Building activity de
clined in January for the third successive
month, reflecting primarily a large reduction
in awards for residential building. Commercial
building awards increased somewhat during the
month. The value of building contracts let dur
ing the first six weeks of the year was substan
tially lower than in the corresponding period of
either 1928 or 1927.
Trade. Shipments of freight by rail in
creased during January and the first two weeks
of February, and were larger than a year ago.
The increase during January reflected chiefly
larger shipments of coal, coke, and livestock.
Sales by wholesale firms were seasonally larger
in January than in December and were above
the level of a year ago. Department store sales
declined less than is usual at this season and
were considerably larger than in January, 1928.
Prices. The general level of wholesale prices
PER CENT
PER CENT
IN D U S T R IA L P R O D U C T IO N
W H O L E S A L E P R IC E S
Index number of production of manufactures and minerals com
bined, adjusted for seasonal variations (1923-1925 average=100).
Latest figure, January, 117 (preliminary).
Index of United States Bureau of Labor Statistics (1926=« 100, base
adopted by Bureau). Latest figure, January, 97.2.
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.
F eb ru a ry , 1929
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
10
rose somewhat in January. Prices of grains,
livestock, and meats advanced and there were
also price advances in steel, automobiles, and
copper. A decrease in the group index for
building materials reflected reductions in the
prices of lumber and brick. Prices of pig iron,
silk, cotton, hides, and petroleum also declined.
tions in the banks’ investment holdings. After
the first week in February security loans de
clined. All other loans, largely commercial, in
creased somewhat in February.
During the five weeks ending February 20, a
decline in the reserve balances of member
banks, together with a considerable inflow of
M IL L IO N S
2000
1500
1927
1928
1
1Í-----------------TOTAL R E SE R V E
B A N K I C R E D IT
A
»V
Dl:S C O U N T S F O R
M E M B E R B A N IK S
u
500
" ^ ^ C O M M E R C IA L P A P E R R A T E '
— R E S E R V E B A N K D IS C O U N T R A T E
— ACCEPTANCE RATE
I
1926
DOLLARS
\~J
1000
1925
OF
1929
M O N E Y RATES
Monthly rates in the open market in New Y ork: commercial paper rate
on 4- to 6-month paper andacceptance rate on 90-day bankers’ accept
ances. Latest figures are averages of first 23 days in February.
Rubber advanced sharply in price. During the
first half of February, the price of copper ad
vanced to a new high level, and the price of
rubber continued to rise. Among the agricul
tural commodities, prices of wheat, corn, and
hogs rose, while prices of sugar and cattle de
clined slightly.
Bank Credit. On February 20 total loans and
investments of member banks in leading cities
were nearly 90 million dollars smaller than at
the middle of January, owing chiefly to reduc-
\
A C C E P T A IS J C E S ^
_ ......
1...... ..........
1925
1926
S E :c u r i t i e s
1927
1928
1929
R ESER VE B A N K C R E D IT
Monthly averages of daily figures for 12 Federal reserve banks.
Latest figures are averages of first 23 days
in February.
gold from abroad, and some further decline in
the demand for currency, were the chief factors
accounting for a decrease of 173 million dollars
in the volume of Reserve bank credit in use. A
large decline in Reserve bank holdings of ac
ceptances and United States Government secu
rities was offset in part by a small increase in
the volume of member bank borrowing.
Open market rates on bankers' acceptances
and commercial paper advanced while rates on
collateral loans showed little change.
T W E L F T H FED ER AL RESERVE D ISTR ICT CONDITIONS
The first month of the year 1929 was a month
of greater than seasonal activity in business in
the Twelfth Federal Reserve District, and
available data indicate a continuance of this
activity during the early days of February. The
major industries of the District operated on
heavier schedules during January, 1929, than
during either December or January, 1928. The
volume of trade transacted in the District was
larger than a year ago, and declines from the
December peak of trade activity generally ap
proximated the seasonal expectation. From
all parts of the District have come reports of
generally sound business conditions.
Thosetendencies in the credit situation which
were a noteworthy feature of the year 1928 per
sisted during January, 1929. Commercial de
mand for credit was moderate, but member
bank loans on securities continued to expand.
Borrowings from the Federal Reserve Bank of
San Francisco increased during January and
the first week of February. During the second
week of February discounts at the Reserve
Bank were reduced slightly. Interest rates were
firmer during January and the first half of
February, 1929, than at any time during the
past two years.
Industry employed a larger number of men
than is usual during January, and output of
copper, steel, metal and machine shop products,
lumber, and petroleum was exceptionally high
for this season of the year. The building and
construction industry, though relatively quiet,
showed some improvement as compared with
recent months. Value of sales at both retail
and wholesale was substantially larger than
during January a year ago, and merchandise
carloadings also exceeded those of January,
Í928.
There was a slight increase in the general
average of commodity prices during January,
1929. Most significant from the standpoint of
this District were advances in prices of wheat,
copper, and Pacific Northwest lumber.
February, 1929
Agriculture
Recent rains and snows have replenished
ground moisture supplies in all states of the
Twelfth Federal Reserve District, and although
the seasonal rainfall is still below normal no
acute shortage of water for agricultural pur
poses is now anticipated.
R A I N F A L L (in inches)— Twelfth District
July 1,1928
July 1,1927
Feb. 12,1929 Feb. 14,1928
Arizona*
Actual
Actual
Flagstaff .........................................
12.9
17.2
Phoenix ...........................................
5.9
4.3
California:
Eureka ...........................................
Fresno ..............................................
L o s A n ge.es .................................
Red Bluff ......................................
Sacramento
..................................
San D i e g o ......................................
San Francisco .............................
Id a h o :
Boise ................................................
N evada:
R e n o ..................................................
O reg o n :
Baker City ....................................
Portland .........................................
R oseburg ........................................
U ta h :
Salt Lake City ...........................
W a sh in g to n :
Seattle ..............................................
Spokane .........................................
Sou rce: W eather
culture.
11
FEDERAL RESERVE AGENT A T SAN FRANCISCO
Bureau,
July 1
Feb. 12
Normal
15.6
7.2
21.7
4.8
6.8
12.5
8.1
4.9
11.6
15.2
5.0
6.7
15.9
6.8
4.8
12.1
28.5
6.5
10.8
16.8
12.0
6.6
15.6
5.5
8.6
7.9
2.5
2.4
6.0
5.1
18.8
14.5
6.8
26.1
14.9
7.4
30.7
23.1
7.0
13.3
5.9
United
States
9.1
19.9
16.0
Departm ent
A P P L E S — Gar lot Shipments
,------------ July
1 to February 1-----------1928-1929
1927-1928 1926-1927
5,280 3,133
4,701
5,954 7,105
3,529
5,367 2,679
6,029
514 408
447
32,214
21,889
28,742
8.9
California ..............................................
Idaho .......................................................
O regon ...................................................
Utah .........................................................
W ashington .........................................
24.0
10.8
...................................................
4 9,329
35,214
43,448
U nited S t a t e s ......................................
108,589
80,353
113,230
of A g ri
In the winter wheat growing areas of the
Pacific Northwest a heavy January snowfall
protected the growing wheat crop from the
freezing temperatures of early February. In
other areas of the District, not subject to such
severe winter temperatures, the 1929 wheat
crop is also reported to be in good condition.
Marketing of the 1928 wheat crop is proceed
ing at a slow pace. From July 1, 1928, to Febru
ary 1, 1929, exports of wheat from Puget Sound
and Columbia River ports totaled 19,777,000
bushels. During a comparable period of the
1927-1928 season, it was estimated that 42,072,000 bushels of the larger 1927 crop were ex
ported f rom these ports. Receipts of wheat at
Portland and Astoria, Oregon, and at Seattle
and Tacoma, Washington, for the season to
February 1, 1929, totaled 34,053 carloads. Re
ceipts at the same terminals from July 1, 1927,
to February 1, 1928, totaled 47,018 carloads.
The 1928 barley crop has moved to market more
rapidly than the wheat crop. Exports from San
Francisco since July 1,1928, have totaled 7,113,000 bushels, compared with 6,249,000 bushels
exported between July 1, 1927, and February 1,
1928. Prices received for wheat and barley sold
at the District's markets during January, 1929,
were approximately 10 per cent and 25 per cent
lower, respectively, than in January, 1928.
The large 1928 apple crop of the District has
had to compete with similarly large crops from
other producing areas, and prices have ranged
below those of a year ago. Prices received by
growers were approximately 30 per cent lower
during January, 1929, than during January,
1928.
On February 1, storage holdings of apples in
the Wenatchee and Yakima valleys of Wash
ington totaled 8,951 carloads. A year ago stor
age holdings in this area were estimated at
6,178 carloads. In California there were 1,913,108 boxes of apples in storage on February 1,
1929, compared with 1,454,120 boxes held on
February 1, 1928. It must again be pointed out,
however, that the comparability of these figures
as a gauge of marketing activity has been seri
ously impaired during recent years. There has
been a substantial increase in cold storage
capacity of Pacific Coast warehouses during
this period and apples formerly shipped for
storage in Eastern cities are now held here
until sold.
Total
S o u r c e : United States Departm ent of A griculture.
During early February the citrus fruit crop
in California suffered some frost damage, but
no accurate estimate of the losses can yet be
made. Prior to the cold weather, the 1928-1929
Navel orange crop was estimated at 17,478,000
boxes. The 1927-1928 crop amounted to 11,650,000 boxes. The pre-frost estimate of the 1929
lemon crop in California was 5,346,000 boxes
as compared with 4,520,000 boxes produced in
1928. Carlot shipments and average f. o. b. Cali
fornia prices of citrus fruits are shown in the
following table:
C IT R U S F R U IT S -C a lifo r n ia
Shipments
(Carlots)
t ----- November
Oranges .....................................................
Lem ons ...............................................
Price
(Per box)
1928-1929
15,236
2,937
— January— >
1929
1928
........................... $3.35 $3.68*
...........................
4.27
5.72*
1 to February 1 ------N
1927-1928 1926-1927
10,660
12,284
1,501
2,412
'—December—' r~November—\
1928
1927
1928
1927
$5.02*
6.12*
Oranges
$3.40 $4.34* $4.69
Lem ons
4.68
4.98* 3.77
^Revised.
S ou rce: California Fruit Growers E xchange.
The condition of livestock and of livestock
ranges in the District declined seasonally dur
ing January. Heavy supplemental feeding of
cattle and sheep has been necessary throughout
the range areas.
Market movements of livestock were with
out particular significance during January.
Prices of cattle and hogs at the District’s prin
cipal stockyards decreased during the month,
but part of the decline was recovered in early
February. Lamb prices have risen rapidly since
the first of the year and on February 15 were
i;
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
at the highest level reached since February,
1925.
Thus far in 1929 there have been few for
ward sales of wool. At this time a year ago it
was estimated that approximately 50 per cent
of the 1928 wool clip in the so-called Western
States had been sold.
The livestock census taken by the United
States Department of Agriculture as of Janu
ary 1, shows that trends in the livestock indus
try of the District, established in immediately
preceding years, persisted during 1928. There
was a marked increase in the number of sheep
in the District, a decline in the number of beef
cattle, and a continued steady growth in the
number of dairy cows. There was a decrease
during 1928 in the more rapidly fluctuating
number of hogs in the District.
F eb ru a ry , 1929
leum was in particularly large volume, output
of lumber was greater than in either December
or January, 1928, and flour mills of the District
continued an active milling program. Favor
able reports from the major extractive in
dustries were supplemented by reports of a
generally high level of operations among the
miscellaneous manufacturing industries. A
seasonal surplus of labor was present in all
states of the District during January, but em
ployment conditions were considerably better
than in January, 1928.
INDEX
NUM BERS
L IV E S T O C K O N F A R M S A N D R A N G E S *
Twelfth District:
1 ,--------- >
1928
1927
1,743
l.,708
3,510
3,597
13,645
13i,217
1,677
l|452
t ---------January
M ilch
O ther
Sheep
Swine
1929
C a t t l e ____ 1,789
C a t t l e ____ 3,305
...................... 14,371
...................... 1,604
United States
----------- January 1,
1929
1928
1927
26,197 26,025 25,866
29,554 29,656 31,006
47,171
44,554 41,846
54,956 60,420 54,408
* I n thousands.
S o u rce: U nited States Departm ent of Agriculture.
I N D U S T R I A L C A R L O A D I N G S — T W E L F T H D IS T R I C T
Changes in the number of animals on the Dis
trict’s farms and ranges during the past year
have been reflected in the figures of livestock
receipts at the principal markets of the Dis
trict. The figures follow:
L IV E S T O C K R E C E IP T S -T w e lfth District*
January, December, January,
Cattle and
1929
Calves ............
93,021
H o g s .................... 275,137
Sheep ................... 177,342
1928
85,135
250,256
191,560
1928
105,054
310,242
192,712
Year
Year
1928
1,067,831
2,536,945
3,832,643
1927
1,267,185
2,146,659
3,510,826
* A t the following m arkets: L os Angeles and San Francisco,
C alifornia; Portland, O r e g o n ; Ogden and Salt Lake City,
U ta h ; and Seattle, Spokane and Tacom a, W ashington.
Industry
During January, 1929, industrial activity was
maintained at high levels for the winter season
of the year. Production of copper and petro-
(A) Industry—
Indexes of daily average production, adjusted for seasonal variation
(1923-1925 daily average = 100)
1929
, 1928-------------->
M anufactures:
Jan.
D ec. N ov. Jan.
Flour .................................................................... 121
103 100
107
Slaughter of Livestock .............................
89
83
85
102
Lum ber ............................................................... 124*
11601110
108
Refined Mineral O ilsf ............................... 178
176 163
143
Cement .......................................................... .. . 116
120 118
95
W o o l C onsum p tion ! ............................................
67
81
78
M inerals:
Petroleum (California) f ......................
114
105 101
93
Copper (U nited S t a t e s ) ? ........................... 129
133 133
102
Lead (U n ited S ta tes)? ............................. 112
114 114
104
Silver (U n ited S ta te s)? ...........................
91
103
93
93
General:
Carloadings— Industrial ........................ . 106
1050 1110 1070
Value of B uilding Permits § ...................
64
66
69
80
V alue of Engineering Contracts
A w arded§
T otal ........................................................... 171
128 123
109
______ Excluding B u ild in g s ........................... 213
120 134
112
*Preliminary. fN ot adjusted for seasonal variation. ^Prepared
by Federal Reserve Board. § Indexes are for three months
ending on the month indicated. ORevised.
Index adjusted for seasonal variation; 1923-1925 daily average—100.
Latest figure, January, 106.
The lumber cut during January, 1929, in
creased as compared with both the previous
month and the same month a year ago. Pro
duction in the Douglas Fir areas although ham
pered somewhat by unusually severe weather
late in January was well maintained. In the
Western Pine and California White Pine re
gions logging and milling companies were ac
tive. Redwood output in California was in
small volume, a number of camps and mills be
ing reported closed. Total production of all
(B) Employment—
f---------- -California---------
Industries
\
'
N o . of
N o. <— Employees — %
N o.
of
Jan.,
Jan.,
of
1928 Firms
Firms 1929
752 141,328 128,524
150
(10.0)
Stone, Clay and
6,736
Glass P roducts. 44
(— 0.9)
L um ber and W o o d
M anufactures . . 117 22,252
(— 2.8)
Textiles ...................
Clothing, M illinery
and Laundering.
F oods, Beverages
and T o b a c c o ...
W ater, Ligh t and
Power .................
Miscellaneous
17
2,486
(0 .1 )
62
7,548
(— 1.0)
169 25,049
(15.3)
4
3,761
(— 6.4)
—
Oregon
- ■— ■»
N o . of
r - Employees
Jan.,
Jan.,
1929
1928
21,445
23,163
(8.0)
6,794
3
133
(— 5.0)
140
22,883
52
13,387
(13.6)
11,783
2,483
11
2,226
(2 .4 )
2,174
468
(4 .0 )
450
44
1,570
(— 5.9)
1,669
31
5,379
(2 .9 )
5,229
7,627
21,725
9*
4,017
324
71,278
(17.1)
60,846
15
2,218
(3 .2 )
2,149
*Laundering only, f Includes the follow ing industries: m etals,
machinery and con veyan ces; leather and rubber g o o d s ;
chemicals, oils and paints, printing and paper goods.
Figures in parentheses indicate percentage changes from Janu
ary, 1928.
February, 1929
FEDERAL RESERVE AGENT A T SAN FRANCISCO
classes of mills was smaller than their ship
ments and smaller than the new orders received
by them. Stocks on hand declined and unfilled
orders increased during the month.
Copper production remained at high levels
during January although receding slightly
from the record output of December. Forward
buying of this metal was heavy throughout the
month, the bulk of the orders accepted at the
end of the month being for May delivery. Pro
duction of lead has also been fairly large since
the first of the year.
Output of petroleum in California increased
steadily during January, this Bank’s index of
daily average production rising to 114 (19231925 daily average=100) the highest figure
since November, 1923. The larger part of the
increase resulted from the bringing in of addi
tional wells in the Santa Fe Springs deep zone.
A reduction of approximately 15 per cent in
prices of lower gravity crude oils became ef
fective on January 18, but this reduction did
not materially affect the new field at Santa Fe
Springs where a relatively high gravity oil is
produced. Refineries were busy throughout
the month running chiefly on high gravity oils.
Shipments of gasoline from California to A t
lantic and Gulf ports and to foreign countries
were exceptionally heavy being more than
twice as large as during January, 1928. It is
estimated that stored stocks of all grades of
petroleum and refined oils in California in
creased by a relatively small amount during the
month.
Millers of the District ground and sold a
seasonally large volume of flour during Jan
uary. Stocks of flour at reporting mills de
clined during the month but, on the first of
February, they were still in excess of stocks
held a year ago. Millers’ stocks of wheat on
that date were approximately the same as on
February 1, 1928.
(C) Distribution and Trade—
1Q2g
1V2y
Jan.
D ec.
Carloadings— Revised
T o ta lf .........................................
M erchandise and
M iscellaneousf .................
W holesale Trade— Sales§ . . .
Retail Trade
Departm ent Store
Salest .......................................
Stocksfl ..................................
114
121
98$
123
98
N ov.
Jan.
i
Year’ s
Average
Index
Numbers*--------------->
114
114
110
114
118
113
118
93$
99
118
103
119
108
122
101
125
106
t--------------------Actual
112
116
110
Figures------------------- %
.24
.21
.25
Stock Turnover|| ...............
.24
.43
C ollection s#
Regular .............................
Installm ent ......................
4 7 .7
4 5 .6
4 6 .2
4 6 .7
4 6 .1
15.9
13.6
14.7
15.9
15.6
* Adjusted for seasonal variations, 1923-1925 a v e ra g e = 1 0 0 . fD a ily
average. ^M onthly totals of ten lines combined. § Monthly
totals of eleven lines combined. IfA t end of month. ||Propor
tion of average stocks sold during month. # P e r cent of col
lections during month to amount outstanding at first of
month.
The building and construction industry has
not contributed materially to the recent ex
pansion in general industrial activity. This
Bank’s quarterly index of the value of building
permits in 20 cities of the District (in which
allowance has been made for the usual seasonal
movements) stood at 64 (1923-1925 average
= 10 0) for the three months ending January,
1929, compared with 66 for the quarter ending
December, 1928, and 80 for the quarter ending
January, 1928. Heavy construction contracts
awarded in this general territory have recently
been large in value. The quarterly index of the
value of these contracts exclusive of large com
mercial and industrial buildings when adjusted
for the usual seasonal movements stood at 213
(1923-1925 average=100) in the quarter ending
in January of this year, at 120 in the quarter
ending December, 1928, and at 112 in the quar
ter ending January, 1928.
Trade
The most important lines of trade in the
District were more active during January, 1929
than during January, 1928, and such declines
as occurred from December to January approxi
mated the seasonal expectation.
The total number of freight carloadings in
the District declined seasonally during the
month but was 3.7 per cent larger than in
INDEX
N UM BER S
M E R C H A N D I S E C A R L O A D I N G S — T W E L F T H D IS T R IC T
1928
f
t-----------------
13
Index adjusted for seasonal variation (1923-1925 daily average = 100).
January of last year. Merchandise loadings
have increased by about the usual seasonal
amount since the beginning of 1929.
The value of retail trade transacted by re
porting stores was larger than a year ago, trade
being exceptionally active in the Intermountain
R E T A IL T R A D E — Twelfth District
N E T SA LE S*
ST O C K *
January, 1929
January, 1929
compared with compared with
January, 1928
January, 1928
Department S t o r e s f ................................
7.9 ( 67)
— 4.9 (52)
Apparel Stores .........................................
14.5 ( 32)
2.2 (17)
Furniture Stores .......................................
2.4 ( 49)
— 7.5 (29)
A ll Store s .....................................................
7.7 (148)
— 4.7 (98)
*Percentage increase or decrease (— ). Figures in parentheses
indicate number of stores reporting, flncludes dry goods
stores.
14
Territory. Of 148 reporting stores 103 reported
increases in sales as compared with January,
1928, and 45 reported decreases. Sales increases
were particularly large in Arizona, Oakland,
San Francisco and Salt Lake City, and were
about equal to the average for the District (7.7
per cent) in Southern California and Seattle.
Smaller than average increases were reported
from Portland, Spokane and other Pacific
Northwest cities. Sales in the central valleys of
California approximated those of a year ago.
IN D E X
80{jv
February, 1929
M O N T H L Y REVIEW OF BUSINESS CONDITIONS
NUMBERS
1925
1926
1927
1928
1929
R E T A I L A N D W H O L E S A L E T R A D E - T W E L F T H D IS T R I C T
Indexes adjusted for seasonal variation. 1923-1925 average = 100. Daily
average figures of department store sales. Monthly figures of
sales at wholesale.
Trade at wholesale has been active for this
season of the year. The value of sales in all
lines except shoes was larger than in January,
1928. The average change was an increase of
9.6 per cent. A few declines in sales, due chiefly
to seasonal causes, were recorded in January as
compared with December. Lines thus affected
were automobile supplies, drugs, electrical sup
plies, furniture, shoes, and paper and station
ery. Compared with January of last year whole
sale trade was especially active in Los Angeles
and showed considerable improvement in Cen
tral California, the Pacific Northwest and Inter
mountain Region.
Sales of new automobiles are ordinarily rela
tively small in volume during January, and
January, 1929, was no exception to this general
rule.
Prices
Composite commodity price indexes have
generally advanced slightfy from their Janu
ary first levels, increases in average prices of
farm products, foods, and metals having more
than offset declines in average prices of other
commodities, such as hides and petroleum.
Commodity prices now average about one per
cent higher than a year ago.
From the District standpoint, probably the
most important price movement during recent
weeks has been the increase in the price of
wheat, large quantities of this commodity be
ing held by the farmers of the District. Wheat
quotations have advanced approximately 10
per cent since early in January. Prices for other
grains have also moved upward during the past
month. In the livestock group important price
changes have included a moderate decline in
cattle prices and a sharp advance in lamb prices.
Prices for copper have continued to move
upward, with the rate of advance accelerated
during early February when quotations for
electrolytic copper at Connecticut Valley
points reached 18 cents per pound, the highest
quotation since 1920.
Declines in prices of lower grades of California crude oil on January 18 were followed
by reductions in quotations for most grades of
oil at mid-continent fields. Quotations for
higher gravity California oils yielding substan
tial amounts of gasoline have not changed dur
ing recent weeks. Composite prices of crude
oil at the well (for the United States as a whole)
now average about 3 per cent lower than at the
opening of this year but are more than 20 per
cent higher than in February, 1928.
Credit Situation
There was a seasonal decline in commercial
demand for credit at member banks of the
Twelfth Federal Reserve District during Janu
ary and early February. Loans on securities
at these banks increased, principally as a
result of increased lending by city member
banks. The volume of Reserve Bank credit
outstanding was moderate during January as
compared with recent months, but increased
rapidly during the first week of February, and
at all times was substantially larger than a year
ago. Interest rates showed an upward tendency
during this period.
(D ) Bank Debits* —
January 1929
Bakersfield ..................................................
Bellingham .....................................................
B e r k e l e y ............................................................
B oise ...................................................................
E ugene ..............................................................
Everett ...............................................................
Fresno ...............................................................
L o n g Beach ...................................................
L os Angeles ..................................................
Oakland ............................................................
O gden ................................................................
Pasadena .........................................................
P hoen ix ............................................................
Portland ............................................................
R eno ...................................................................
R itzville ...........................................................
Sacram ento .....................................................
Salt Lake City ..............................................
San Bernardino ...........................................
San D ieg o .......................................................
San F r a n c is c o ................................................
San J o s e ............................................................
Santa Barbara ..............................................
Seattle ..............................................................
Spokane ............................................................
S tockton ............................................................
Tacom a ..............................................................
Yakim a ..............................................................
Total ...............................................................
$
16,551
9,976
24,380
16,809
7,497
13,903
35,068
73,327
1,269,052
256,961
20,513
49,956
46,400
182,699t
10,956
1,074
54,154
86,361
12,551
74,758
1,436,725
31,518
18,035
274,478
60,501
29,476
52,467
13,840
$ 4 ,l7 9 ,9 8 6 f
January 1928
$
14,831
9,550
23,883
15,414
6,534
11,895
33,779
51,703
996,559
250,449
18,570
41,516
35,364
152,810
8,883
1,014
49,046
81,060
10,504
62,511
1,371,227
29,741
14,378
223,067
54,192
33,408
41,690
12,780
$3,656,358
*In thousands. '¡"Includes $17,963,000 at four banks not re
porting prior to week ended M ay 2, 1928.
February, 1929
15
FEDERAL RESERVE AG EN T A T SAN FRANCISCO
Total loans and investments of reporting
member banks in the District declined during
January and the first two weeks of February,
as the result almost entirely of a seasonal re
duction in so-called commercial loans. These
loans were reduced steadily from 920 million
dollars on December 26, 1928, the high point
for that year, to 877 million dollars on January
30, 1929. On February 20, they amounted to
876 million dollars, a total reduction for the
this would have brought about a reduction in
borrowing at the Federal Reserve Bank, but its
effect this year was more than offset by heavy
M ILL IO N S O F
T O fA L
,
DOLLARS
R ESER VES\/
^
\
F E D E R A L R ESERVE
N O T E C IR C U L A T IO N
--------- -------- --------------- ^
.... T/VTAI Dll 1
—^
AND
^
SECU R ITIi
7 s --------
IN V E S T M E N T S
> _____/
^
B IL L S D IS C O U N T E D
1.----------------------------------- 1------------------------------
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 IC T
Monthly average of daily figures. Latest figures are averages for
the first twenty days in February.
transfers of funds out of the District, and bor
rowings at the Reserve Bank increased early in
February to the highest levels since last Sep
tember.
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
F E D E R A L R E SE R V E B A N K O F S A N F R A N C IS C O
Monthly average of weekly figures. Latest figures are averages
for the first three weekly report dates in February.
period of 44 million dollars, or five per cent. On
the latter date, they were the same as a year
ago. Reporting member bank loans on securi
ties, increased almost continuously from De
cember 26, 1928, to February 13, 1929. During
the week ending February 20, they were re
duced 11 million dollars but at 417 million dol
lars were still 24 million dollars or six per cent,
larger than at the close of December and 96
million dollars, or 29 per cent larger than on
February 21,1928.
At the Federal Reserve Bank of San Fran
cisco, changes in demand for credit during
January and February reflected chiefly the
movement of funds between this District and
other districts of the United States and the
usual seasonal changes in demand for cur
rency. With the passing of the December holi
day season, the District’s need for currency
declined and there appears to have been a de
crease of approximately 25 million dollars in the
amount of currency in circulation. Ordinarily,
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)
/------------------------ Condition ------------------------->
F eb.20,F eb.6, Jan.30,
D ec.26, Feb.21,
Total Loans and Invest1929
1929
1929
1928
1928
ments .................................. 1,948
1,947
1,943
1,997
1,828
Total Loans ......................... 1,293
1,293
1,285
1,318
1,232
Commercial L o a n s ............
876
881
877
921
881
Loans on Securities . . . .
417
412
408
393
351
Investm ents ........................
655
654
658
679
596
N et Dem and D e p o s its ..
801
780
785
796
790
T im e Deposits ...................
969
979
986
969
922
Borrow ings from Federal
Reserve B a n k .................
61
72
44
49
54
*T h e figures for reporting m em ber banks have again been revised
since publication in the Federal R eserve Bulletin for January,
1929.
(In millions of dollars)
F eb .20, F e b .6,
1929
1929
150
Total B ills and Securities. . . 136
82
Bills Discounted ................... , 71
50
49
Bills Bought .............................
17
United States Securities. . . , 15
220
Total Reserves ........................ 228
190
T otal D eposits ........................ , 183
Federal Reserve N otes in
159
Circulation ............................ 158
Condition
Jan.30, Dec.26, Feb.21,
1928
1928
1929
132
117
126
56
58
55
26
58
53
17
17
33
239
238
253
192
185
188
158
177
150
During recent years the flow of funds out of
the District, which commences in January, has
continued during February. This year the
movement ceased, at least temporarily, on Feb
ruary 7th, and during the following two weeks
there was a slight return flow of funds into the
District, accompanied by a moderate reduction
in borrowings at the Federal Reserve Bank.
Reserve Bank holdings of bills purchased and
securities were also reduced during this period,
so that on February 20 total bills and securities
were 14 million dollars or nine per cent smaller
than on February 6.
Interest rates in the District continued to
harden during January and February, and in
general averaged higher than at any time dur
ing the past two years.
IN T E R E S T R A T E S — San Francisco
(Average rates prevailing: at the middle of the month)
Commercial
Paper*
February, 1929.
..
5 .5 8 %
January,
1929.
..
5.57
Decem ber, 1928.
..
5.22
February,
4.94
1928.
H ig h , 1927 ........................................................
5.36§
Bankers’
Acceptances!
534%
43/4-5
434
334
3^$
*R ates charged to customers by banks on prime paper eligible
for rediscount with the Federal Reserve Bank. fD ealers’
offering rate for 90-day prime bills. §Decem ber. JJanuaryJune, inclusive.
F ebru ary , 1929
M O N T H L Y R EVIEW OF BUSINESS CONDITIONS
16
T ruck C rop s —
T w e lft h F e d e r a l R e s e r v e D is t r ic t
In the years since 1920 that branch of agri
culture known as truck farming has been stead
ily increasing in importance, particularly in the
Twelfth Federal Reserve District. In 1920, the
value of truck crops produced in the United
States approximated $177,123,000 or less than
two per cent of the estimated value of all crops
produced during that year. In 1928, the output
of the truck farms of the country was valued
at $261,777,000 or slightly more than three per
cent of the estimated value of all crops. A
similar comparison for the Twelfth Federal Re
serve District shows an increase from $46,053,000 to $87,360,000 in the value of truck crops
IN THOUSANDS
2 6 0 0 -1
2 4 00-
IN MILLIONS
tw elfth
lU N IT E D
2 6 0
d is t r ic t
STA TES
2 4 0
2200-
220
2000-
200
1800*
180
1600-
160
1400-
M
1200-
120
10008 0 0 -
600
4 0 0
200
0
21 22 23 24 25 26 27 28
Acreage
20 21 22 23 24 25 26 27 28
Value
TR U C K CROPS—T W E L F T H DISTRICT A N D
U N IT E D STATES
produced and from 5.7 per cent to 9.7 per cent
in the proportion of total crop value repre
sented by truck crops. Aided by improved
methods of handling and transporting farm
products and stimulated by favorable changes
in the dietary habits of the nation, a thriving
country wide agricultural industry has evolved
from the small truck gardens, which were for
merly a characteristic feature of the territory
adjacent to centers of population. Large areas
of farm land are now devoted to growing speN O T E : The term truck crops includes the following crops classi
fied by the United States Department of Agriculture: arti
chokes, asparagus, snap beans, cabbage, cantaloupes, carrots,
cauliflower, celery, sweet corn, cucumbers, egg plant, let
tuce, onions, peas, peppers, potatoes (early Irish), spinach,
tomatoes, and watermelons. Unless otherwise specified the
figures shown for the Twelfth Federal Reserve District are
exclusive of data for Idaho and Nevada. Approximately onequarter of the truck crop acreage in Arizona, California,
Oregon, Utah, and Washington is devoted to crops for
manufacturing purposes, principally canning.
cialized truck crops, and proximity of consum
ing markets is no longer a controlling factor in
the location of production centers.
The relative importance of truck crops, as
compared with field, fruit, and grain crops, is
shown in the following table:
R ELATIV E V A L U E OF F AR M CROPS
,------------- 1928------------- * r~ ----------- 1920Twelfth
Twelfth
United States District United States District
All C r o p s ........................ 100.0%
100.0%
100.0% 100.0%
28.6
45.3
41.8'
Field Crops .................... 43.1
Fruits and Miscellaneous
6.8
43.9
4.3
28.2
Grains .............................. 47.0
17.8
48.5
24.3
Truck Crops ..................
3.1
9.7
1.9
5.7
In the Twelfth District favorable climatic
conditions and the ability to produce larger
yields per acre than in most other areas$ have
combined with improved transportation facili
ties and better methods of refrigeration to
overcome the handicap of distance from East
ern centers of consumption. In 1928, more than
one third (37 per cent) of the total carlot ship
ments of truck crops in the United States origi
nated in five states (Arizona, California, Ore
gon, Utah, and Washington) of this District.
in 1920 these states accounted for a little less
than a quarter (23.5 per cent) of the total carlot
shipments of truck crops.
No doubt a part of the relative gain in
Twelfth District shipments may be accounted
for by the increasing use of motor transporta
tion between Eastern producing and consum
ing centers, but not all of the increase can be
explained in this way. The following table
shows the average yearly increase from 1920
to 1928 in acreage, value, and carlot shipments
of truck crops in the Twelfth District and in
the United States.
TRUCK CROPS
A V E R A G E Y E A R L Y INCREASE 1920 TO 1928
Acreage
Twelfth District ...................................
9 .2 %
United States .......................................
7.2
Value
7.3%
4.5
Carlot
Shipments
12.9%
10.5
This Bank’s indexes of production of truck
crops in five states of the Twelfth Federal Re
serve District and in the District as a whole
are presented in the following table:
IN D E X OF PRO D U CTIO N TRU C K CROPS*
(1925-1927 Average=100)
Washington
T o t a l f .........
1928
148.8
130.0
74.3
101.4
97.0
127.3
1927
135.8
109.6
91.8
82.1
105.6
109.1
1926
88.6
102.0
131.5
69.5
95.2
99.7
1925
75.4
88.4
76.6
148.3
99.2
91.1
1924
52.0
75.6
77.3
62.7
89.7
73.9
*Does not include onions, tlncludes data for a few truck crops
grown in Nevada and Idaho.
JArizona leads the United States in per acre yields of lettuce and
cantaloupes ; Utah leads in canning tomatoes ; and Califor
nia in asparagus, cauliflower, cucumbers, early onions, spin
ach, and watermelons.
Those desiring this review sent them regularly will receive it without charge upon application.
1923
33.3
72.3
41.7
67.7
105.8
71.3
@FedFRASER