Full text of Economic Review (Federal Reserve Bank of San Francisco) : July 16, 1923

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M O N T H L Y

R E V IE W

B U S I N 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. VII

San Francisco, California, July 16, 1923

Summary of National Conditions
Production of basic commodities declined in
June, but employment was maintained at last
month’s high level, freight shipments were ex
ceptionally large, and the volume of wholesale
and retail trade continued heavy. Wholesale
prices showed a further decrease.
Production. The Federal Reserve Board’s
index of production in basic industries, which
makes allowance for seasonal variations, was
4 per cent lower in June than in May and stood
at about the level of the late winter. Mill con
sumption of cotton, steel ingot output, and
sugar meltings showed particularly large re
ductions. The value of permits for new build
ings and of contracts awarded declined more
in June than is usual during that month.

The Department of Agriculture forecasts, on
the basis of July 1st condition, a large increase
in the cotton crop, a slight reduction in the
corn crop, a winter wheat crop of about the
same size as last year, and a spring wheat crop
which will possibly be about forty million
bushels below 1922.
The number of factory employees at work in
June in the country as a whole was about as
large as in May, though a reduction was re
ported by New England establishments. The
proportion of factories reporting full time oper
ations decreased, and consequently average
earnings per employee were smaller. W age
advances continued to be reported in June, but
they were not nearly so numerous as in April
or May.

M IL L IO N S

PER C E N T

No. 7

O F D O LLA RS

160

B I L L IO N S O F D O L L A R S

140
,/AI22

120
100

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60
40
20
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0 131
19 1920 1921 1922 1923
Index of Production in Basic
Industrie*
Combination of 22 individual series
corrected for seasonalvariation
(1919 average = 100 per cent)

Prices

Bank Credit

Index numbers of wholesale prices.
United States Bureau of Labor Statistics
(1913 averas:e=100 percent)

All Federal Reserve Banks

800 member banks in leading cities

A substantial, black, cloth-covered, three-ring binder, large enough to contain one year’ s (12) issues o f this
review, will be mailed prepaid to any address on our mailing list upon receipt o f one dollar to cover actual costs.

M O N T H L Y R E V IE W OF B U SIN E S S C O N D IT IO N S

Trade. Distribution of commodities, as meas
ured by railroad freight shipments, was active
throughout June. The number of cars loaded
exceeded a million in each of four successive
weeks, and in the week ended June 30th was
the largest on record. The volume of whole
sale and retail trade in June was about the
same as in May and continued to be substan
tially larger than in 1922. Sales of groceries
and dry goods were much larger in June, and
this increase was reflected in an advance of 4
per cent in the Federal Reserve Board’s index
of wholesale trade. This index, which makes
no allowance for seasonal changes, was 9 per
cent above the June, 1922, level. Department
store and mail order sales were smaller, as is
usual at this season, while sales of reporting
chain stores were at about the same high level
as in May. Stocks of merchandise at depart
ment stores were reduced about 6 per cent.
Wholesale prices. The decline in commodity
prices which began late in April continued
during June and the first two weeks of July,
and the index of the Bureau of Labor statistics
for June was 2 per cent less than for May. The
largest decline, amounting to 4 per cent, oc
curred in the prices of building materials, and
decreases were shown also for all the other
commodity groups, except house furnishings
which remained unchanged. During the first
half of July, price declines were shown for
wheat, sugar, petroleum, and lead, while the
price of corn and hides advanced.
Bank credit. Bank developments between
the middle of June and the middle of July
largely reflected the payment of income taxes
on June 15th, dividend and interest payments
at the turn of the half year, the demand for
additional currency for the July 4th holiday,
and the return flow of currency after that date.
A t the end of the period the volume of member
bank and Federal reserve bank credit in use
was approximately at the same level as a
month earlier. A t the Federal reserve banks
the amount of discounts for member banks on
July 18th was about $100,000,000 larger than
on June 13th, but this increase was practically
balanced by a decline in holdings of accept
ances and government securities.
During the month of June gold and gold cer
tificates in circulation increased by over $40,000,000, and this increase is reflected in an
equivalent decline of gold held by the Federal
reserve banks.
Money rates were slightly firmer, as is usual
at this season of the year.

Summary of District Conditions
Production and distribution in the Twelfth
District during June, although proceeding at
levels below those of the first quarter of the
year, have continued in normal or greater than
normal volume, with full employment of all
classes of labor. Loans of member banks and
discounts of the Reserve Bank have increased
moderately.
Production and shipments of lumber de
clined during June, and new orders received
were smaller in volume than in the previous
month or in June, 1922. Lumber mills report
a sufficient quantity of unfilled orders still on
hand, however, to necessitate capacity opera
tion. Production of the principal metals of the
district declined slightly during the past month.
The market for copper, lead, and zinc has been
inactive with prices falling, and the silver mar
ket has been temporarily disorganized by the
completion of government purchases of domes
tic silver at the fixed price of $1.00 per ounce.
The price of silver in the open market aver
aged 65 cents per ounce during June. Drilling
of wells in the newer oil fields of California
has continued, and despite efforts of the larger
producers to curtail production, output and
stored stocks have increased rapidly. There
were 79 new wells completed during June with
an initial daily production of 152,974 barrels.
Total production during the month reached the
record daily average of 755,570 barrels. No
appreciable decline in the volume of projected
building construction was indicated by figures
of building permits issued in the principal cities
of the district during the past month. Labor
continued fully employed, a fact which is at
tested by the difficulty encountered by farmers
of the district in securing adequate harvest
help.
Debits to individual accounts at banks in
principal clearing house centers, an approxi
mate measure of the total volume of business
transacted in the district, were 20.7 per cent
greater during June, 1923, than during June,
1922, and were 19.6 per cent greater during the
first six months of 1923 than during the same
period in 1922. The value of sales at retail,
as reported by 34 department stores in seven
cities, was 13.4 per cent greater during June,
1923, than during June, 1922, a larger increase
than was reported in the two previous months,
but below the increases of 20 per cent reported
in February and March. Trade at wholesale
continued greater in value than a year ago,
but the increases in most reporting lines dur-

SUMMARY OF PROVISIONS
OF THE

AGRICULTURAL CREDITS ACT OF

1923

PREPARED BY FEDERAL RESERVE BANK OF SAN FRANCISCO

San Francisco, California, July 16, 1923
H E Federal Reserve Board, in a statement
for the press on July 7, 1923, suggested
that Federal Reserve Banks should give to
the public information regarding the added
facilities for agricultural financing made possi
ble through legislation enacted during the last
Congress. In conformity with this suggestion
there is submitted herewith a comparative
digest of those provisions of the Agricultural
Credits Act of 1923 which it is thought will be
of most interest to member banks, co-operative
marketing agencies, and purchasers and buyers
of agricultural products. Information other
than that herein contained may be had by
addressing the Federal Intermediate Credit
Banks at Berkeley, California, and Spokane,
Washington, and, with respect to National
Agricultural Credit Corporations, the Comp
troller of the Currency, Washington, D. C.

In substance, the Agricultural Credits Act
was designed to provide additional credit facili
ties to agriculturists and producers of livestock
through the discount of their paper ranging in
maturity from six months to three years.
Provisions of the Act relating to the Federal
Reserve System are summarized on page 4
herein. The Act also provides two separate
and distinct organizations for supplying credit
to agriculturists and those engaged in the live
stock industry, viz., the Federal Intermediate
Credit Banks and the National Agricultural
Credit Corporations.
Federal Intermediate Credit Banks may dis
count for the following agencies :
National banks;
State banks and trust companies ;
Incorporated livestock loan companies ;
Savings institutions;
Co-operative banks ;
Co-operative credit or marketing associations
of agricultural producers ;
Any other Federal Intermediate Credit Bank.
Federal Intermediate Credit Banks may also
lend direct to co-operative associations en
gaged in producing or marketing staple agri
cultural products or livestock when the notes
of such associations are secured by warehouse
receipts, shipping documents, or mortgages on

livestock. Federal Intermediate Credit Banks
may not do business direct with individual
borrowers. The maturity of the notes redis
counted by Federal Intermediate Credit Banks
must be not less than six months nor more
than three years, and the proceeds of the notes
must have been used in the first instance for
agricultural or livestock purposes. Federal In
termediate Credit Banks may make such notes
the basis of debenture issues. These banks are
supervised by the Federal Farm Loan Board
in Washington. One is located at each of the
twelve Federal Land Banks, and has the same
officers and directors, but is entirely indepen
dent in capital, assets and liabilities. The capi
tal for each Federal Intermediate Credit Bank
is to be $5,000,000, supplied by the Treasury of
the United States.
National Agricultural Credit Corporations,
on the other hand, may lend direct to individ
uals engaged in agriculture and the fattening
of livestock upon notes having a maturity not
exceeding nine months, and to individuals en
gaged in the breeding of livestock or in the
dairy industry upon notes having a maturity
not exceeding three years. The United States
Government supplies no capital to these asso
ciations, their number is not limited, and they
may be organized anywhere by a minimum of
five incorporators, provided they have a sub
scribed capital of not less than $250,000, of
which one-half is paid in in cash. National
Agricultural Credit Corporations (Rediscount
Corporations) having an authorized capital of
$1,000,000 or more may, instead of doing busi
ness with the public, rediscount paper of the
kind above described for other national agri
cultural credit corporations, or for banking in
stitutions which are members of the Federal
Reserve System, and also purchase direct from
co-operative agricultural associations, notes
secured by warehouse receipts, shipping docu
ments, etc., and having a maturity not exceed
ing nine months. All National Agricultural
Credit Corporations will operate under a Fed
eral charter and be under the supervision of
the Comptroller of the Currency. A compara
tive summary of the foregoing and other im
portant features of the Agricultural Credits
Act is appended hereto.

Additional copies o f this summary may be obtained upon application to the Federal Reserve Bank o f San Francisco

A G R IC U L T U R A L

C R E D IT S

A C T

O F

1 9 2 3

( A P P R O V E D M A R C H 4 , 1 923)

N a tio n al A gricu ltu ral Credit Corporations

National Agricultural Credit Corporations
(R e d isco u n t C orporations)

F edera l In term ed iate C redit B an ks

(S e c . 2 0 7 )

Where Located

None yet authorized to do business.

One at each of the twelve Federal Land
Banks. In this district, one at Berkeley,
California, and one at Spokane, W ash .

To W hom May Lend

Private individuals; partnerships; associ
ations and corporations.

M ay rediscount for National Agricultural
Credit Corporations and banks which are
members of the Federal Reserve System ;
may lend direct to Agricultural Co-opera
tive Societies.

National Banks; State Banks; Trust C om
panies; Agricultural Credit Corporations;
Incorporated Livestock Loan Com panies;
Savings Institutions; Co-operative B anks;
Co-operative Credit or marketing associ
ations of agricultural producers; other
Federal Intermediate Credit Banks.

Lending Powers

(1) M ay make advances upon, discount,
rediscount or purchase notes, drafts and
bills of exchange, and accept drafts and
bills of exchange which are issued or
drawn for an agricultural purpose, or the
proceeds of which have been or are to
be used for an agricultural purpose, and
which are secured by warehouse receipts
on non-perishable, readily marketable
staple agricultural products or chattel
mortgages on livestock which is being
fattened for market.
(2) M ay make advances upon, discount,
rediscount or purchase notes secured by
chattel m ortgages upon maturing or
breeding livestock or dairy herds.

(1) M ay rediscount for any National
Agricultural Credit Corporation or for
any bank or trust company which is a
member of the Federal Reserve System,
on its endorsement, notes, drafts, bills of
exchange or acceptances which conform
to the requirements of paragraphs 1 and
2 in previous column.
(2) M ay discount or purchase notes,
drafts, or bills of exchange issued or
drawn by agricultural co-operative asso
ciations and secured by warehouse re
ceipts on non-perishable, readily market
able agricultural products.

(1) M ay discount or purchase any note,
draft, bill of exchange, debenture, or
other such obligation the proceeds of
which have been advanced or used in the
first instance for any agricultural pur
pose or for the raising, breeding, fatten
ing or marketing of livestock.
(2) M ay make loans or advances direct
to any agricultural or livestock co-opera
tive association if the notes are secured
by warehouse receipts or shipping docu
ments covering staple agricultural prod
ucts, or mortgages on livestock, such
loans not to exceed 75 per cent of mar
ket value of security.

Maturities

(1) N ot exceeding nine months at time
of discount or purchase if made under
paragraph (1) above.

(1) In case of rediscounts for National
Agricultural Credit Corporations or for
member banks of Federal Reserve Sys
tem, the same maturities as required for
discount of the paper in the first instance
by those institutions.
(2) In case of discount for or purchase
from co-operative associations of agri
culturists, not exceeding nine months.

N ot less than six months nor more than
three years at time of discount. Federal
Farm Loan Board has ruled that, for the
present, maturities shall not exceed nine
months.

(2) N ot exceeding three years at time of
discount or purchase if made under para
graph (2) above.

W hat Constitute
“ Staple Agricultural
Products”

N ot yet defined.

Grain, cotton, wool, tobacco, peanuts,
broom corn, beans (including soy beans),
rice, hay, nuts, canned fruits and vege
tables.

Rate of Interest

N ot to exceed the maximum rate allowed
by law of state in which corporation is
located, e. g., in states of Twelfth Dis
trict these limits are:
A r i z o n a ................................................. 10%
California ....................................No limit
I d a h o ..................................................... 10%

Not to exceed the maximum rate allowed
by law of state in which corporation is
located, e. g., in states of Tw elfth D is
trict these limits are:
A r i z o n a ................................................. 10%
California ....................................No limit

T o be established by each Federal Inter
mediate Credit Bank with approval of
Farm Loan Board. After debentures is
sued, may not exceed by more than 1 per
cent the rate of last preceding issue of
debentures.
N o borrower allowed to
discount paper with Federal Intermediate

T H a h n ..............

................. ................ ..............

10^

(b) Surplus
Earnings

N o p rovision.

M ay issue, subject to regulations by
Comptroller of the Currency, collateral
trust notes or debentures, maturity not
to exceed three years, secured by the
obligations it has discounted.
N o government liability therefor.
N ot to exceed, together with other liabili
ties, ten times its paid-in and unimpaired
capital and surplus.

(d) Rediscounting

M ay not rediscount with Federal Reserve
Banks or Federal Intermediate Credit
Banks. May rediscount elsewhere, not to
exceed, together with other liabilities, ten
times its paid-in and unimpaired capital
and surplus.

Stockholders

Private individuals.
An y member bank in Federal Reserve
System may apply to Comptroller of the
Currency for permission to purchase
stock of one or more of the National
Agricultural Credit Corporations, not to
exceed 10 per cent of its paid-in and un
impaired capital and surplus.

Supervised by

Comptroller of the Currency.

Directors

Five.

Federal Reserve
Banks

Federal Reserve Banks may purchase
and sell debentures of, when within six
months of maturity.
M ay purchase and sell acceptances of.
M ay act as depositaries for and Fiscal
Agents of.

in within six months.
No provision.

M ay issue, subject to regulations by
Comptroller of the Currency, collateral
trust notes or debentures, maturity not to
exceed three years, secured by the obli
gations it has rediscounted or purchased.
No government liability therefor.
No limit in law as to total amount which
may be issued. Comptroller of the Cur
rency to prescribe this limit.

One-half of net earnings annually to be
paid to United States and other half to
be credited to surplus until surplus equals
100 per cent of capital; thereafter 10 per
cent of net earnings annually to be added
to surplus; balance of net earnings being
paid to United States.
M ay issue and sell tax exempt collateral
trust debentures or similar obligations,
maturity not to exceed five years; interest
not to exceed 5 per cent per annum, se
cured by cash or by the notes it has dis
counted. N o government liability there
for. Each bank primarily liable for its
own debentures, but all twelve banks are
liable for loss of interest or principal on
the debentures of one or any of them,
in proportion to the aggregate of capital,
surplus and debentures of each outstand
ing.

May not rediscount with Federal Reserve
Banks or Federal Intermediate Credit
Banks. N o limit in law as to total amount
which may be rediscounted elsewhere.
Comptroller of the Currency to prescribe
this limit.

M ay rediscount with
Banks. (See below.)

Private individuals.
Any National Agricultural Credit Cor
poration may purchase stock not to ex
ceed 20 per cent of its paid-in and unim
paired capital and surplus. A n y member
bank in Federal Reserve System may ap
ply to Comptroller of Currency for per
mission to purchase stock of one or more
of the National Agricultural Credit Cor
porations, not to exceed 10 per cent of its
paid-in and unimpaired capital and sur
plus.

Government of the United States.

Federal

Reserve

Comptroller of the Currency.

Federal Farm Loan Board.

Five.

Same officers and directors as Federal
Land Bank at which located.

Federal Reserve Banks may purchase
and sell debentures of, when within six
months of maturity.

Federal Reserve Banks may purchase and
sell debentures of, when within six
months of maturity.
M ay purchase and sell acceptances of.
M ay rediscount notes and drafts if drawn
for an agricultural purpose or based upon
livestock and having maturity at time of
discount not to exceed nine months, pro
vided such notes do not bear the en
dorsement of a non-member bank or
trust company which is eligible for m em
bership in the Federal Reserve System.

M ay purchase and sell acceptances of.
M ay act as depositaries for and Fiscal
Agents of.

at«

„

------ 1

__i

AM ENDM ENTS OF FED ERAL RESERVE A C T
BY

A G R IC U L T U R A L C R E D IT S A C T O F 1923
(Concerning matters other than relations with Federal Intermediate Credit
Banks or National Agricultural Corporations)

Federal Reserve Banks—
1. May discount notes of factors issued as such, making advances
exclusively to purchasers of staple agricultural products in
their raw state; the maturity of such notes not to exceed 90
days. (Sec. 13, par. 1.)
2. May discount or purchase demand and sight bills of exchange
drawn to finance domestic shipments of non-perishable, read
ily marketable staple agricultural products, secured by ship
ping documents conveying title thereto, provided such bills be
forwarded promptly for collection and on no account held by
Federal Reserve Bank in excess of 90 days. (Sec. 13, par. 2.)
3. May discount bankers’ acceptances with six months, instead of
customary 90-day maturity, if drawn for agricultural purposes
and secured by documents conveying title to readily market
able staples. (Sec. 13, par. 4.)
4. May discount notes and drafts drawn for agricultural pur
poses, or based on livestock, with a maturity of nine months
instead of six months as heretofore. (Sec. 13a.)
5. May admit as members, State banks having a paid-up capital
of not less than $15,000 instead of $25,000 heretofore required
as minimum, upon condition that such capital be increased to
$25,000 out of earnings. (Sec. 9, par. 9.) The Federal Reserve
Board has published a regulation announcing that this in
crease must be accomplished within five years from date of
entrance into the system.
The Agricultural Credits Act also extends to February 29, 1924,
the time during which the W ar Finance Corporation may make
advances and purchase notes, drafts, bills of exchange, or other
securities.

FEDERAL RESERVE A G E N T A T S A N FRANCISCO

ing June, 1923, compared with June, 1922, were Crop Conditions
not as great as those reported in previous
Weather conditions during the past month
months of the present year. Five lines re
have been generally favorable for the normal
ported a decline in the value of sales during
growth of late sown grain crops and the har
June, 1923, as compared with May, 1923, but
vesting of earlier sown fields. Threshing is
these decreases were largely seasonal. There now in progress in the southern states of the
was a marked decline in both number and district. In California it was estimated that
liabilities of business failures during the month.
approximately 50 per cent of the wheat crop
Increase in loans of member banks and of and 70 per cent of the barley crop had been
the Reserve Bank continued during June. placed in sacks by July 16th. Partly in re
Total loans of 66 reporting city member banks sponse to continued favorable weather condi
reached a new peak in the upward movement tions during June and partly in response to
which began in February, 1922, but later de unexpectedly large threshing returns in states
clined, and were but $1,000,000 higher at the where harvesting has begun, the United States
close of the month than at its beginning. Total Department of Agriculture has increased its
deposits of these banks gained $7,000,000 dur previous estimates of yields of grain in this
ing the same period. Discounts of all member district. Revised estimates, as of July 1st,
place the 1923 yield of all wheat in the principal
banks at the Federal Reserve Bank increased
producing states of the district at 131,847,000
by $23,000,000 during the four weeks ending
bushels compared with the June 1st estimate
July 11th, and at $84,000,000 on that date were
of 122,929,000 bushels. Pertinent figures relat
higher than at any time since October, 1921. ing to the condition of the district’s wheat crop
The amount of Federal Reserve Notes in cir and forecasted yields of this grain are pre
culation increased, partly due to seasonal sented in the following table :
causes, from $202,000,000 on June 13th to $217,Winter
Spring
Wheat
000,000 on July 11th, the latter figure being
Wheat
Forecasted
Actual
Condition
Condition
Yield*
Yield*
$21,000,000 above the low point of recent years
(Per Cent of Normal)
AH Wheat A ll Wheat
July 1, July I. July 1, July 1,
July 1,1923
1922
reached on April 25th. Succeeding weeks will
1923
1922
1923
1922
(bushels)
(bushels)
reveal to what extent these increases in re California .
14,589
15,308
98
78
97
88
24,275
27,106
discounts and note issue were temporary and
. . 96
85
97
70
19,744
24,527
. . 95
78
93
89
6,243
5,682
incident to the fiscal year requirements of
Washington . . 98
67
101
63
59,382
32,444
June 30th. Interest rates charged by commer
Totals . .
131,847
97,453
cial banks have remained steady.
United States. 76.8
77
82.4
83.7
821,000
______
862,000
The downward movement of prices which
*000 Omitted.
began in May continued during June. The
The 1923 barley crop in California is now
general level of prices as shown by the United
States Bureau of Labor’s index number of placed at 34,724,000 bushels by the Department
wholesale prices declined 2 per cent. Impor of Agriculture, compared with a 1922 crop of
tant individual declines which contributed to 36,864,000 bushels.
the general fall in prices were those reported
W heat markets of the district have been
for wheat and for building materials. The relatively inactive during the past cereal year.
present price level at 153 (1913 prices=100)
Export movement of wheat from Portland and
is 3.8 per cent below the peak of April, 1923, the Puget Sound ports from July 1, 1922, to
and 10.9 per cent above the post armistice low June 30, 1923, totaled only 18,985,766 bushels,
of January, 1922.
compared with a movement of 44,776,459
Another month of favorable growing weather bushels during the 1921-1922 cereal year and
greatly benefited the crops of the district and 29,837,894 bushels during the 1920-1921 cereal
it now appears that the total volume of agri year. The trend of wheat prices continued
cultural production will be greater than last downward during the past month, and on July
14th milling wheat in the San Francisco mar
year. The canning fruit crops of California
are being harvested, and growers and canners ket was quoted at $1.87 per cental ($1.12 per
have finally agreed upon the prices to be paid bushel), compared with $1.90 per cental ($1.14
for the various fruits. They average approx per bushel) on June 15, 1923, and $1.88 per
imately 50 per cent below the prices paid a cental ($1.13 per bushel) on July 14, 1922.
year ago. Revised prices on unsold stocks of There is reported a tendency among growers
1922 crop dried fruits held by California pro to hold their grain in expectation of an advance
ducers’ associations have recently been named, in prices later in the season. An exception is
entailing substantial reductions in every in noted in the case of brewing barley in Califor
stance. Livestock of the district are reported nia which is being freely sold at present prices
ranging from $1.00 to $1.45 per cental.
to be in excellent condition.

M O N T H L Y R EVIEW OF BUSINESS CONDITIONS

100

Planting of the major field crops has been
completed in all sections of the district and
figures on acreage and estimated production
(United States Department of Agriculture esti
mates for cotton, sugar beets, beans, and po
tatoes, and commercial estimates for rice pro
duction) are now available. The profitable
results of last year’s operations have evidently
induced a marked increase in the planting of
sugar beets, the acreage for this year being
19 per cent in excess of the 1922 acreage and
the forecasted yield greater by 22.5 per cent.
Figures for the principal producing states fol
low .

California
Idaho . . .
Utah . . .

Estimated
Acreage
1923
(acres)

Condition Forecasted
Acreage (PerCent
Yield
1922
of Normal) July 1.1923
(acres) July 1.1923
(tons)

70,000
48,000
83,879

62,200
25,000
78,894

District . 201,879

166,094

87
100
97

543,000
404,000
940,000

Final
Yield
1922
(tons)

441,000
279,000
819,000

1,887,000 1,539,000

Plantings of potatoes on the other hand, of
which there was a bumper crop last year mar
keted with difficulty at relatively low prices,
are 20 per cent less than they were in 1922.
The estimated yield from 219,000 acres planted
in California, Idaho, Oregon, and Washington
is 32,738,000 bushels, compared with 40,740,000
bushels produced on 276,000 acres in these
states during 1922.
Preliminary estimates place the 1923 plant
ings of cotton in Arizona at 133,000 acres and
in California at 81,000 acres. Final estimates
of plantings in 1922 were 100,000 acres for
Arizona and 88,000 acres for California. The
condition of the 1923 crop on June 25th was
slightly over 90 per cent of normal in both
states, indicating a yield of 119,000 bales.
There were 76,000 bales produced in 1922.
Plantings of Pima long staple cotton in Ari
zona have decreased from 77,000 acres in 1922
to 43,000 acres during the present season.
The 1923 plantings of rice in California are
estimated at 105,500 acres, a decrease of 34,500
acres, or 24.5 per cent, from the 1922 figure of
140,000 acres. The crop is generally in good
condition, but a smaller yield than last year’s
production of 3,717,000 bags (100 pounds each)
is expected, due to the marked decrease in
acreage. The rice growers association which
controls the bulk of the crop in California esti
mates that unsold holdings of 1922 crop rice
in all hands amounted to approximately 750,000
bags of 100 pounds each on July 1, 1923. This
figure is equal to 20 per cent of the previous
year’s crop. The carryover on June 15, 1922,
was estimated at 1,000,000 bags of 100 pounds
each, or 37.7 per cent of the 1921 crop of 2,646,000 bags. Growers have received from $2.35
to $2.65 per 100 pounds of paddy rice for that
part of the 1922 crop already sold. During

the 1921-1922 season they received from $2.52
to $2.70 per 100 pounds of paddy rice. The
rice market has been inactive during recent
weeks.
Estimates of the United States Department
of Agriculture, as of July 1st, show that there
are 299,000 acres planted to all varieties of
beans in California, compared with 1922 plant
ings of 325,000 acres. Plantings of lima beans
have been reduced from the 115,000 acres re
ported in 1922 to approximately 98,000 acres
this year. The present condition of the bean
crop indicates a yield of 3,070,000 bushels of
dry beans and 1,400,000 bushels of lima beans,
according to commercial estimates. In 1922
there were 2,653,300 bushels of dry beans and
2,125,000 bushels of lima beans produced in
California.
The condition of deciduous fruit crops
throughout the district improved during June,
and in many cases estimates of forthcoming
yields have been increased. Department of
Agriculture figures for some of the principal
fruits grown in California are given in the fol
lowing table : Conditiono|1
Forecasted
Final
July 1st
(Per Cent of Normal)
1923
1922

Apples* ............... 82
85
Apricots ..............102
59
C h e r r ie s ...............................
G rapesf ............... 96
97
Peaches ............... 92
98
Pears ................... 80
80
Prunes ................. 63
76

Yield
July 1, 1923
(tons)

Estimate of
Yield 1922
(tons)

6,977,000*
210,000
14,500
1,743,000
393,000
112,000
80,000

7,656,000*
120,000
12,000
1,660,000
420,000
125,000
110,000

*Total crop (commercial and non-commercial, in boxes),
tIncluding all varieties (table, wine, and raisin).

Similarly large yields of most fruits are ex
pected in the Pacific Northwest. The 1923
commercial apple crop in Washington, the
principal apple producing state in the district,
is now estimated at 26,031,000 boxes, com
pared with 21,312,000 boxes produced in 1922.
The important berry crops in Oregon have
been damaged by rain during the past month,
but only ripe fruit already on the vines was
affected, and later maturing fruits will prob
ably be benefited by the additional moisture.
Railroad figures on shipments of fresh de
ciduous fruits from California thus far this
season indicate that there will be an unusually
heavy movement during the present year. The
following table gives the total shipments up
to July 8th of the past two seasons:
1923 Season
to July 8th
(cars)

1922 Season
to July 8th
(cars)

519
Apricots ..............................................
Cherries ..............................................
612
G r a p e s ................................................
1
P e a c h e s ...............................................
243
Pears ....................................................
885
Plums ................................................. 3,346

193
502
141
7
1,188

Totals ........................................... 5,606

2,031

101

FEDERAL RESERVE AG EN T A T SAN FRANCISCO

The low prices offered for canning fruits and
the uncertainties surrounding the future mar
ket for dried fruits have apparently led many
growers to ship a larger proportion of their
crops than usual to the fresh fruit markets.
Previous estimates of the 1923 Valencia
orange crop in California remained unchanged
at 10,278,000 boxes on July 1st. Approximately
40 per cent of the crop had been shipped by
that date. Total shipments of oranges and
lemons up to July 1st of the past two seasons
have been as follows:
N ov. 1st to July 1st
1922-1923
1921-1922
(cars)
(cars)

O r a n g e s .............................................. 38,021
Lem ons ..............................................
6,149

24,011
7,534

Canned and D rie d F ruits
The canned fruit situation is at present (July
16th) complicated by the inability of canners
and growers of fruit to agree upon the prices
to be paid for green fruit and by the uncertain
ties surrounding the future market for canned
fruit products. During the past month can
ners have announced prices which they will
pay for apricots, and growers’ organizations
have named selling prices for canning pears
and peaches. The figures are given in the
following table, together with corresponding
prices of a year a g o:
Number One Grade

Apricots, canners’ offering p ric e..
Clingstone Peaches, growers’ o f
fering p r i c e ........................................
Freestone Pfeaches, growers’ offer
ing price ..............................................
Bartlett Pears, growers’ offering
price .......................................................

1923
(per ton)

1922
(per ton)

$20-$35

$75—$100

45*

35f

52.50$

71.25

*Subsequently reduced to $30 per ton, which price was accepted
by canners.
tSubsequently reduced to $25 per ton, which price was accepted
by canners.
$ Subsequently reduced to $35 per ton, which price was accepted
by canners.

Reports continue to indicate that a majority
of canners are planning to pack a quantity of
fruit only sufficient to fill orders actually re
ceived or undoubtedly in prospect, a decision
probably influenced by the quantity of 1922
pack fruit still unsold and the small volume
of future sales consummated thus far this year.
The domestic canned fruit market is reported
to have strengthened slightly during the past
month. Foreign buyers are reported generally
out of the market.
Recently announced opening prices for canned
blackberries and loganberries are higher, and
for canned cherries are lower, than the 1922

opening prices of these varieties, as shown by
the following table:
Q ni Price.
Spo, Price.
Choice Grade, N o . 2V* Can

1923
(per doz.)

Blackberries ........................$3.05
Cherries, black.................. .3.15
Cherries, Royal Anne
. 3.45
Loganberries .......................2.45*

1922
(per doz.)

$2.60
3.75
3.90
2.15*

July 14.1923
(per doz.)

$2.35
3.50
4.15
1.75*

* Standard Grade.

The dried fruit market has remained rela
tively inactive. Buyers have thus far this year
(July 16th) shown little interest in spot stocks
of 1922 crop fruit or future stocks of 1923 crop
fruit at prevailing prices. Carryover stocks of
all classes of dried fruits are larger than a year
ago. The packers recently have reduced prices
for old crop dried apricots, peaches, and raisins,
and announced their 1923 opening prices for
dried apricots and figs. The 1922 and 1923
opening prices, and present spot prices for
1922 crop dried fruits in California are given
in the following table:
Dried Fruits
( Choice Grade, in 251b. Boxes)

Spot Price
July 16,1923
(cents per pound)

Opening Prices
1923
1922
(cents per pound)

Apples* .............................. 6^-624
•• 12
10
10 24J4
Apricots, Northern...........
Figs, White Adriatic.........
fc/i
8$4
.. 14J4
Figs, Black Mission...........
Peaches, Unpeeled Yellow
7
.. 11$4
Pears..................................
.. 15
Prunes, 40/50......................9J4-10
.. 11^-12
Raisins, 4 cr. Loose Mus
catel ................................
8
.. 10
Raisins, Thompsons.........
8
. 10
*B ulk in 50-lb. boxes.

Livestock
W ith the exception of small areas in Arizona
and southern Utah, the livestock ranges of the
district are in excellent condition. In the ex
cepted areas rainfall has been deficient, feed
has deteriorated, and the condition of livestock
has declined. Some stock has been reported
shipped from Arizona to ranges outside of the
district. The situation in the dry areas was
greatly improved by showers during the first
week of July, however, and if rainfall during
the remainder of July be normal in amount
little permanent harm will have been done.
Receipts of all classes of livestock, except
sheep, at eight principal markets of the dis
trict were greater in June, 1923, than in June,
1922. The decline in receipts of sheep is a
reflection of the generally improved condition
of the sheep industry resulting from the ex
cellent market which has prevailed for wool
and lambs during the past few months. Sheep
raisers are retaining a larger proportion of
their flocks this year than has been the case
for some time past. A greater than seasonal
decline in receipts of sheep during June, 1923,

102

M O N T H L Y REVIEW OF BUSINESS CONDITIONS

as compared with May, 1923, furnishes addi
tional evidence of this tendency among sheep
men to build up their flocks. Commercial re
ports of a growing demand for stocker and
feeder animals, both cattle and sheep, have
been received from several markets, particular
ly from those in the Pacific Northwest.
Receipts of Livestock at Eight Principal Markets
Cattle
Calves
Hogs

June, 1923.............. 74,750
May, 1923.............. 67,895
June, 1922.............. 67,866

19,915
20,511
14,201

179,457
170,364
109,622

Sheep

229,663
440,028
246,044

THO USAN DS

Western markets, where shippers were at
tracted by the relatively high prices prevailing
on the Pacific Coast. Prices on July 16th were
approximately 4.9 per cent higher than one
year ago. For some time past they have aver
aged 25 per cent above prices in the spring of
1922.
The heavy movement of eggs into cold stor
age which has been a feature of recent months
diminished during June, and total holdings of
cold storage eggs increased only 16 per cent.
Increases have ranged from 65 to more than
100 per cent during the earlier months of the
spring season of heavy production. Holdings
of cold storage eggs in the six principal mar
kets of this district on July 1, 1923, were 15.3
per cent greater than on July 1, 1922.
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:
July 1,
1923

June 1,
1923

M ay 1(
1923

July 1.
1922

Butter (pounds). 4,666,429 2,041,196 532,956 3,926,977
E ggs (c a se s). . . .
633,519
514,751 314,697
549,031

Prices

Receipts of Livestock at Eight of the Principal Markets of the District
1922-1923. (Los Angeles, Ogden, Portland, Salt Lake City, San
Francisco, Seattle, Spokane, and Tacoma included)

Prices for hogs and cattle at the principal
markets of the district were relatively stable
during the past month. Prices for sheep and
lambs advanced slightly. In the national mar
kets, prices for hogs fell to the lowest levels
in recent years during June, and at times
quoted prices were below the pre-war price
level.

Dairy and Poultry Products
The usual seasonal increase in butter pro
duction was reported during June, and large
quantities of butter were placed in cold storage.
Holdings of cold storage butter in the four
principal markets of this district, which were
more than doubled during the month, were
18.8 per cent larger on July 1, 1923, than on
July 1, 1922. Present holdings of 4,666,429
pounds were slightly above the 1922 peak of
4,664,416 pounds, reached in August of that
year, and nearly equal to the 4,815,484 pounds
stored on August 1, 1920, the highest figure
reached since accurate records have been kept.
Butter prices declined slightly on the San
Francisco wholesale market during the last
week in June, following heavy receipts of but
ter from local producers and from Middle

Continuance of the steady decline in wheat
prices which has been in progress for two
months past was the feature of the price situa
tion during June and the first weeks of July.
By July 16th the price of July wheat on the Chi
cago market had fallen to 97 cents per bushel,
the lowest quotation since 1914. During the six
weeks period beginning June 1, 1923, the price
of wheat declined approximately 13 per cent.
Prices for cotton, wool, and sugar declined
during June, but continued well above prices
a year ago. Spot middling upland cotton on
the New Orleans market was quoted at 27
cents per pound on July 6th, one cent below
the quotation at the beginning of June. Present
prices for cotton are approximately 25 per cent
higher than in July, 1922. The average of 98
wool quotations on the Boston market declined
2 cents during June, but at 81.93 cents per
pound on July 6th was still 10 per cent above
the level of one year ago. Sugar prices con
tinued to move in an erratic manner, but the
general tendency was downward during the
past month. Granulated cane sugar in the
San Francisco market was quoted at $9.90 per
100 pounds on June 11th, $9.45 per 100 pounds
on June 28th, $8.75 per 100 pounds on July
12th, and $9.00 per 100 pounds on July 17th.
Revised prices for unsold stocks of 1922 crop
dried fruits produced in California have re
cently been announced by the growers’ associa
tions which control the majority of the output.
Marked reductions in prices of dried apricots,
peaches, prunes, and raisins have been made in

103

FEDERAL RESERVE AGENT AT SAN FRANCISCO

an effort to move present stocks before the
1923 crops come on the market. (The figures
are given in table “A ” .)
The general price tendency among other than
agricultural products of the district has also
IN D E X

been downward during recent weeks. A few
declines in lumber prices have been reported,
and prices for non-ferrous metals have regis
tered further fractional losses.

Milling

NUM BERS

________

Wholesale Prices and the Cost of Living, 1920-1923

U n ited States Bureau of Labor In dex o f W h o le sa le Prices ( 1 9 1 3 = 1 0 0 )
N ation al Industrial C on feren ce Board In dex o f th e C ost of L iving (July 1 9 1 4 = 1 0 0 )

Figures furnished by sixteen large milling
companies which report regularly to this bank
indicate that flour millers of the district in
creased their purchases of wheat as the price
of that grain declined during recent weeks.
Stocks of wheat held by these companies ad
vanced from 2,288,340 bushels on June 1st to
2,899,607 bushels on July 1st, and on the latter
date were more than twice as large as stocks
held on July 1, 1922. Production of flour in
creased during June in response to a more
active market demand. The output of sixteen
reporting mills was 345,342 barrels, compared
with 302,129 barrels produced during May.
Production during June, 1923, was 14.4 per
cent greater than during June, 1922. Stocks
of flour held by the same mills declined from
517,704 barrels on June 1st to 492,571 barrels

(A) Commodity Prices—
Commodity

Unit

Tw enty Basic Commodities (F. R. B. of N. Y .) 1913=100.
W holesale Prices (U . S. Bureau of Labor) 1 9 1 3 = 1 0 0 ..........
Cost of Living (National Industrial Conference Board)
July, 1914=100 ....................................................................................
Cattle (Native B e e f). . .W eekly average price at C h icago.. 100 lbs.
Sheep ....................
Lambs .................. ........... W eekly average price at C h ica g o.. 100 lbs.
H og s ..................... ........... W eekly average price at C h icago.. 100 lbs.
W h e a t .................. Chicago contract prices for July W h e a t., bu.
B a r l e y .................. Shipping Barley f. o. b. San F ra n c isc o ... cental
Rice ...................... . California Fancy Japan at San Francisco cental
C o t t o n .................... Middling Uplands— W eek ly range of spot
quotations at N ew O rleans........................ lb.
W o o l ...................... Average of 98 quotations at B osto n ........... lb.
Flour ...................... First Grade Family Patent f. o. b. Pacific
Coast mills ........................................................bbl.
S u g a r ...................... Cane granulated f. o. b. San Francisco., lb.
Oranges ................Valencias, Special Brands, L os Angeles, box
Lem ons .............. .Market pack at Los A n g eles........................ box
Dried A p p le s .... Choice in 50-lb. boxes f. o. b. California, lb.
Dried A p ricots.. .Choice in 25-lb. boxes f. o. b. California, lb.
Prunes .................. Size 40/50 in 25-lb. boxes f. o. b. C alif... lb.
Raisins ................ Loose Muscatel in 25-lb. boxes f. o. b.
California ..........................................................lb.
Canned Apricots.C hoice, sliced 2y2s f. o. b. California.........doz.
Canned Peaches. .Cling, Choice, sliced 2 ^ s f. o. b. C alif... doz.
Canned P e a r s ...,.Bartlett, Standard 2 ^ s f. o. b. California doz.
Raw M ilk .............. .Pacific Coast— June average........................ 100 lbs.
Butter .....................93 score at San Francisco............................... lb.
Eggs ...................... .Extras— San F r a n c isc o ................................... doz.
Copper ...................Electrolytic; N ew Y o rk S p ot........................ lb.
Lead ...................... N ew Y o rk S p o t................................................... lb.
S ilv e r ...................... New Y o rk Foreign ............................................ oz.
Z i n c ...................... .East St. Louis S p o t.......................................... lb.
P e tr o le u m .............California 35° and above............................... bbl.
Douglas F ir ........ .2x4, 16-ft. N o. S1S1E f. o. b. Seattle......... M ft.
D ouglas F ir ........ .12x12 Tim bers f. o. b. Seattle........................ M ft.
*1923 Crop prices.

July 6.1923

152.4
153.0

One Month Ago

157.6
156.0

One Year Ago

143.6
150.0

160.1
155.4
160.3
$10.05
$ 9.85
$ 9.40
6.15
6.50
6.50
15.65
13.50
12.90
7.05
7.10
10.05
1.015^-1.0354 1.093^-1.13^ 1 .1 3 ^ -1 .1 5 ^
1.35-1.50
1.25-1.35
1.35-1.40
4.65
4.45
5.25
27.00-28.75* 28.00-28.50*
81.93*
83.93*

21.50-22.50*
74.01*

7.44
9.45
3.75-4.50
4.50-5.50
.0634
.1 0 -.1 0 ^ *
.0 9 ^ -.1 0

7.96
6.90
7.75-8.50
2.50-2.75
.12-1254
.23 *¿-.24

.09
3.30
2.75
2.75
2.67
.423^
.3 2 ^
.1454
6.50*
.633/6
5.85-5.90*
1.04
22.50
26.00

7.56
10.10
3.75-4.50
3.00-3.50
.06^2

.12^-.123/i*
.1 0 ^ -.ll
.11
3.30
2.75
2.75
2.69
.4 4 ^
.32
.14*4
7.35*
.655^
6.40*
1.04
23.50
26.00

.uy2-.i2y4
.1 5 ^
3.15
2.60
2.85
2.12
.40
.31
.13JÍ-.14
5.75*
.7 1 «
5.50*
2.45
17.50
17.00

104

M O N T H L Y R EVIEW OF BUSINESS CONDITIONS

on July 1st, and are now only slightly in ex
cess of the 484,695 barrels held on July 1, 1922.
Figures for sixteen milling companies for
which a continuous record is kept are given in
the following table:
June. 1923

M ay, 1923

June, 1922

Output of Flour......... 345,342
302,129
301,825
Stocks of Flour*......... 492,571
517,704
484,695
Stocks of Wheat*...... 2,899,607 2,288,340 1,317,926
*A s o f the first day o f the following month.

where wholesalers and retailers bought heavily
during the first four months of the year, and,
with current demands satisfied, are not now
anticipating future requirements.
Production of lumber continues at record
levels despite the continued decline in the
volume of orders received. The volume of
unfilled orders held by the mills is large, ship
ments on old orders have been heavy, and
stocks generally have needed replenishing.
Figures showing the activity of approximately
200 reporting mills follow (000 omitted) :

Production........
Shipments............
O rders.................
Unfilled Orders.. ..

THO USAN D

BARRELS

9001--------

June, 1923
(board feet)

M ay, 1923
(board feet)

June, 1922
(board feet)

647,408
600,160
482,498
487,690

680,193
618,534
535,299
561,690

578,293
577,228
525,763
502,213

Logging camps continued active during June
and increased their output both as compared
with May, 1923, and with June, 1922. The
almost total absence of forest fires this year
contrasts with the situation a year ago, and
has favored a record production of logs. Mill
requirements have been heavy, however, and
no surplus of logs has been reported.

700

100:
0 n~; TTT i _n L~LTTrT^TTTTirr
1922

M IL L IO N S OF B O A R D F E E T

HT i
1923

jTT]

Monthly Flour Output, and Stocka of Wheat and F l««r at Bnd *f Month,
of 16 Reporting Milling Companies

Production of forty-eight flour mills, as re
ported by sectional millers’ associations, de
creased 2.8 per cent during June as compared
with May. A heavy decline of production in
Washington was responsible for the reported
decrease in the district. Figures follow:

California ...
Idaho .........
Oregon
Washington
District ...

.
.
.
.

--------- Output
June,
M ay,
1923
1923
(barrels)
(barrels)

10
3
17
18

10
3
16
18

212,468 201,150
6,362
7,021
109,993 85,687
167,637 218,635

5.6
10.3
28.3
—23.3

I
OO 1

N o .o f M ills
Reporting
June, M ay,
1923
1923

Per Cent
Increase or
Decrease ( —)
June, 1923
Compared
with
M ay, 1923

497,119 511,834

— 2.8

Lumber
A decline in building activity in some sec
tions, and the usual summer lull in lumber
buying have combined to restrict the market
for lumber products of the district. Orders
received by reporting mills during June were
less in volume than during May, and, as in that
month, were considerably smaller in amount
than in the corresponding month a year ago.
The principal declines in the volume of new
business have occurred in the domestic market

Lumber Production, Orders Received, and Shipments in Twelfth
Federal Reserve District as Reported by Four Lumber
Associations. 1922-1923

Despite the nation-wide building activity,
demand for shingles has been weak through
out the present year. It is estimated that not
over 50 per cent of the shingle mill capacity of
the district was in operation on July 1st.
A s usual the majority of the logging camps
and lumber mills closed down for varying
periods of time during the first two weeks of
July. Equipment was repaired, employment
changes made, and stocks checked during the
time when operations were suspended.

Mining
Despite a marked decrease in demand and
consequent falling prices during the past two
months, there has been little decline in pro
duction of the principal non-ferrous metals in

105

FEDERAL RESERVE AG EN T AT SAN FRANCISCO

this district. Final national figures for June
are not yet available, but preliminary reports
indicate that in general there was a slight cur
tailment of production as compared with May.
The figures of national production for May,
1923, April, 1923, and May, 1922, follow :
Copper (lbs.)
M ay 1923
April, 1923
M ay. 1922
(mine production) 124,784,916 118,423,571 92,048,036
Silver (oz.)
(commercial bars)
6,835,221 6,615,535 4,257,973
Zinc (tons)
47,347
46,866
27,419
(slab) ....................
Figures for lead are not available.

The metal market, both in this country and
abroad, has been dull, and prices have declined
steadily during the past three months. Present
quotations for copper are 11 per cent, for lead
13 per cent, for silver 4 per cent, and for zinc
21 per cent below the recent peak levels of
March, 1923. The effect of this situation on
production of metals has now been accentuated
by the completion of government purchases of
domestic silver under the Pittman Act of 1918,
which fixed the price at which the government
must buy such silver at $1.00 per ounce. Final
tenders of silver under this act were accepted
by the Director of the Mint as of June 2, 1923,
and domestic silver mined henceforth must be
sold in the open market. The average open
market price for silver during June was 64.86
cents per ounce, and it is doubtful whether all
of the ores profitably mined when domestic
silver was selling at the fixed price of $1.00
per ounce can continue to return a profit at
this price. The mines which produce silver
only, and which have been operating at ab
normally high levels during the past few
months in an attempt to produce as much silver
as possible for sale under the terms of the
Pittman Act, have been most seriously affected
by the completion of the government pur
chases.
They have greatly curtailed their
activities and are now planning to develop only
the richer ore bodies on their properties. Lead
mines of the district which also produce large
quantities of silver have, with few exceptions,
maintained production at previous levels.
Copper and zinc mines have been less af
fected by developments in the silver market
than have the silver and lead mines, as the
value of their silver output in most cases is not
large. Their response to price declines in their
own markets has thus far been limited. The
large size of most of the copper operations
makes it difficult to adjust output to fluctua
tions of the market which may prove to be
temporary, and no decline in copper produc
tion has followed the fall in prices for that
metal. A significant feature of the copper mar
ket during the past month was the report of

the Copper Export Association that the 400,000,000 pounds of copper earmarked for export
in 1921 has now been completely sold. Pro
duction of zinc during June was slightly less
than in the previous month in Utah, but fully
equal to May production in Idaho. On July
1st zinc mines in the principal eastern pro
ducing districts, faced with increasing stocks
and falling prices, announced a drastic cur
tailment of their output.
Average prices quoted for copper, lead, sil
ver, and zinc during June, 1923, May, 1923,
and June, 1922, are given in the following
ta b le :

---------------- A v e r .,« P rice .---------------- .
June, 1923 M ay. 1923
Jane, 1922
(cents)
(cents)

Copper (lb.)
(cents)
N ew Y o rk Electrolytic.. 14.91

Lead (lb.)
7.14
N ew Y o r k ..........................
Silver (oz.)
N ew Y ork Foreign......... 64.86
Zinc (lb.)
St. L o u i s .............................
6.03

15.69

13.82

7.30

5.74

67.04

71.15

6.62

5.34

Petroleum
Efforts of producers to curtail production of
petroleum in California have not been entirely
successful, drilling having continued actively
in the newer fields in southern California.
Seventy-nine new wells were brought in dur
ing June, and production at 755,570 barrels per
M I L L IO N S

C A L IF O R N IA
Production, Shipments, and Stored Stocka of Petroleum, and Refinery
Stored Stocks of Gasolene. 1922-1923

day exceeded the record figures of the previous
month by 8.7 per cent. Present production is
112 per cent greater than production a year
ago.
Consumption of petroleum, as indicated by
shipments from California fields, did not show

106

M O N T H L Y R EVIEW OF BUSINESS CONDITIONS

the usual seasonal increase during June, and
at 650,345 barrels per day was 26,830 barrels
per day less than in the record month of May.
As a result of greatly increased production and
a small decline in consumption there was a
large increase in stored stocks during the
month. On July 1st they stood at 72,637,147
barrels, compared with 69,480,405 barrels on
June 1st, an increase of 4 per cent. On July 1,
1922, stored stocks of petroleum amounted to
43,477,237 barrels.
The upward movement of stocks of gasoline
in California which had been in progress for
10 months prior to April, 1923, was resumed
during May. Stocks of gasoline held at re
fineries on June 1, 1923, totaled 147,125,960
gallons, compared with 136,684,477 gallons held
on May 1st, and 138,058,780 gallons held on
April 1st. On June 1, 1922, stored stocks of
gasoline at refineries in California amounted
to 56,394,512 barrels.

Electric Energy
Industrial activity in this district, as indi
cated by sales of electric power to industrial
consumers, continued through May at levels
approximately 20 per cent above those of a
year ago. Some decline in the volume of sales
for agricultural purposes was noted, a reflecM1LLI0NS

OF K I L O W A T T HOU RS

Total Industrial Sales (K .W . H .) of 20 Power Companies in Twelfth
Federal Reserve District. 1922-1923

tion of the smaller amount of irrigation due to
more abundant rainfall this year as compared
with last year, but this was more than offset
by marked increases in the use of power in the
mining, lumbering, oil producing, and manu
facturing industries. Percentage comparisons
of sales of 20 of the principal power companies

by certain industries and by sections of the
district are presented in the following table:
Percentage Increase or Decrease (—) M ay, 1923, compared
with M ay, 1922
Total
Agricul
Manu*
Industrial
facturing
ture
Mining
Sales
California

..................... —

1.6

—

Pacific Northwest
14.9
Intermountain States.
11.6
Tw elfth District ......... —
.4

6.2

33.2

17.6

21.9
35.9
10.4

40.6
26.6
34.7

12.6
41.2
20.1

Compared with April, 1923, sales of electric
power during May, 1923, were greater by 8.5
per cent. All of the industries for which segre
gated figures are available purchased increased
amounts of power except the mining and
petroleum industries in California. Voluntary
curtailment of production of petroleum in some
of the older oil fields of that state was prob
ably responsible for the latter decrease.
Figures showing the number of industrial
consumers and industrial sales of reporting
companies during May, 1923, and May, 1922,
follow :

Number of
Industrial Consumera
M ay,
M ay.
1923
1922
California .................. 57,719 50,687
Pacific Northwest . . 11,876
10,723
Intermountain States 2,851
3,146
Tw elfth District

...

72,446

64,556

Industriai Sales K .W . H .
M ay,
M ay,
1923
1922
227,674,794
193,479,259
71,234,656
63,058,471

63,216,546
44,650,681

361,967,921

301,346,486

Retail Trade
The dollar value of sales of 34 reporting
department stores in this district was 13.9 per
cent greater during June, 1923, than during
June, 1922. This increase as compared with a
year ago is slightly greater than the increases
reported during the two previous months, but
is considerably less than the increases of 20
per cent reported in February and March, 1923,
as compared with February and March, 1922.
A decline of 12.9 per cent in the value of sales
during June, 1923, as compared with May,
1923, was a seasonal movement. Total sales
of reporting stores during the first six months
of 1923 have amounted to $83,000,000, an in
crease of $11,000,000, or 15 per cent, over total
sales during the first six months of 1922.
Stocks held by reporting stores declined
during June, as goods bought in the spring
were cleared from the shelves preparatory to
purchasing new fall stocks of merchandise. A t
the close of June, 1923, the value of stocks
(selling price) was reported as 4.4 per cent
less than at the close of May, 1923, but 11.6
per cent greater than at the close of June,
1922. The average rate of turnover of stocks
in all stores as indicated by the relation be
tween sales and stocks during June was 2.8
times per year.

107

FEDERAL RESERVE AG EN T A T SAN FRANCISCO

A detailed statement of the percentage
changes in the value of sales and stocks of
reporting department stores in this district
follow s:
Percentage increase Percentage increase
or decrease (— ) in
or decrease (— ) in
value of
value of
sales June, 1923,
stocks June, 1923,
compared with
compared with
N o. of
June,
M ay,
June,
M ay,
Stores
1922
1923
1922
1923

L o s A n g ele s.........
Oakland ................
Salt Lake C i t y ...
San Francisco___
Seattle ...................
Spokane ................
District*

6
4
4
9
5
5

.......... 34

22.6
13.8
13.4
6.5
10.5
4.9

— 3.4
9.1
— 11.0
— 33.4
1.8
2.8

13.9

— 12.9

17.9
0.3
8.5
— 5.6
— 14.8
— 6.7
12.1
— 6.9
13.7
— 7.1
4.2
— 2.9
11.6

— 4.4

*Figures for one store included in district figures, but not in
cluded in figures for cities shown above.

M IL L IO N S

causes. In the automobile tire business one
or two manufacturers announced reductions
in prices during June and retailers immed
iately curtailed their purchases in expectation
of similar reductions by other manufacturers.The extent of the movement is indicated by
the decline in wholesale tire sales during June,
1923, as compared with June, 1922, which
amounted to 29.5 per cent.
Percentage increases or decreases (— ) in the
value of June sales of all reporting firms in
each line of business are presented in the following table:
Si* Mo„,h.

OF D O L L A R S

Ending June
June, 1923. 30,1923, corncompared with pared with
June,
M ay, same period
1922
1923
in 1922

Number
of Firms

Agricultural Implements
Autom obile Supplies___
Autom obile T ir e s............
D r u g s ....................................
Dry G oo d s...........................
Electrical E q u ip m en t...
Furniture ............................
Groceries ............................
Hardware ...........................
Shoes ....................................
S ta tio n e ry ...........................

23
20
18
9
14
6
17
29
20
13
29

2.4
16.0
— 29.5
9.8
8.4
9.2
23.2
7.0
15.7
9.2
21.7

8.6
.2
— 4.0
-— 1.4
— 8,8
5.1
8.7
11.3
— .4
— 6.9
10.5

13.8
26.2
19.8
11.2
33.9
27.1
33.4
14.3
31.4
17.8
21.3

JUNE PRICES 1 9 2 2 = 1 0 0 ^ = JUNEI922 SALES
U.S.BUREAU OF LABOR INDEX
NO. WHOLESALE PRICES
AGRICULTURAL IMPLEMENTS

AUTOMOBILE SUPPLIES

AUTOMOBILE TIRES

DRUGS

DRY G O OD S

Net Sales of 31 Department Stores in Twelfth Federal Reserve District
(in M illions o f D ollars)

FU R NITU RE

Wholesale Trade
Signs of decreasing activity in wholesale
trade which first appeared in May were con
firmed during June in reports received by this
bank from 198 firms engaged in 11 lines of
business in the district. Although trade in
all but one of the eleven lines was greater in
June, 1923, than in June, 1922, the increases
compared with a year ago were less than they
have been for some months past. This dimin
ishing margin of increase can partly be ac
counted for by the fact that wholesale prices
were increasing during the first six months of
1922 whereas they have decreased during the
past two months of 1923. The general level
of wholesale prices, according to the index
number of the United States Department of
Labor, was but 2 per cent higher in June, 1923,
than in June, 1922. As compared with May,
1923, sales during June, 1923, were greater in
six lines and less in five lines, but the declines
in most cases may be assigned to seasonal

GROCERIES

HARDWARE

SHOES
ST A T IO N E R Y

2 0

100

120

140

160

Dollar Value of Sales of Representative Wholesale Firms and General
Wholesale Prices in June, 1923, compared with June, 1922

Collections during the past three months
have been reported as follows:
Number of Firms Reporting Collections as
Excellent
Good
Fair
Poor

April,
May,

1923........................... 7
1923........................... 6

50
69

74
60

10
6

June,

1923........................... 3

Automobile Registrations
Sales of new automobiles, as indicated by
new car registrations, have continued greatly
in excess of the figures for a year ago. In four
states of the district for which comparative

M O N T H L Y REVIEW OF BUSINESS CONDITIONS

108

data are available there were 68 per cent more
new passenger cars and 26.5 per cent more new
commercial vehicles registered during May,
1923, than during May, 1922. During the first
five months of the present year the increase in
sales as compared with the same period in 1922
has been 91 per cent and 52 per cent for pasenger cars and trucks, respectively. The figures
foll0W:

T o « ..
N ew Passenger
C ar« Registered
Jan. 1, to Junel.
1923
1922

Arizona .................
3,950 1,380
California ............
94,057 52,166
Idaho .....................
3,671 1,654
O r e g o n ..................
14,521 5,543
U t a h ........................ 4,337
*
W ash ington -----18,899 5,966
Total (4 states) 116,199

60,743

T o ,.I
N ew Commercial
Cars Registered
Jan. 1, to June 1,
1923
1922

292
9,555
235
577
422
*
10,659

72
6,346
170
424
*
*
7,012

*N o t available.

Total registrations of old and new automo
biles in six states of the district (figures for
Nevada are not available) during the first half
of 1923 amounted to 1,409,345 cars as compared
with 1,105,429 cars registered during the first
half of 1922, a gain of 27.5 per cent.
National production of automobiles during
June declined slightly from the record levels
of the previous month, but continued far
greater than in 1922. The following production
figures collected from manufacturers represent
ing over 90 per cent of the national output
have been compiled by the Federal Reserve
Bank of Chicago.
June, 1923*

M ay. 1923

June, 1922

Passenger C ars................... 337,048
T r u c k s ....................................
39,945

Production

350,073
42,373

262,384
25,373

Total ................................... 376,993

392,446

287,757

^Preliminary figures.

During the first six months of the present
year more automobiles have been produced
than during any like period in the brief history
of the industry. The estimated production has
been 2,024,023 passenger cars and trucks. Dur
ing the first half of 1922 there were 1,146,102
automobiles produced.

ticularly acute in Oregon, Washington, and
Idaho, and farmers in those states have found
it necessary to advance wages of farm laborers
as much as 20 per cent over those paid one
year ago in order to attract men to the harvest
fields.
Capacity production continues in the lumber
industry and the number of men employed in
the principal lumbering districts is greater than
one month ago or one year ago. Available
figures for the camps of the Pacific Northwest
show that there were approximately 95,000
men on the payrolls of the lumber companies
on July 1, 1923, compared with 92,000 on June
1, 1923, and 89,000 on July 1, 1922. Full em
ployment of all skilled miners is reported from
the Intermountain district, the need for men
being equal to or slightly greater than the
number available. Some unemployment has
been reported in the oil fields of Central Cali
fornia, but this is a purely local condition re
sulting from the temporary curtailment of pro
duction on some of the oil producing proper
ties in that section. The demand for building
trades craftsmen continues active in all states,
and shortage of plasterers and bricklayers is
reported.
Employment in manufacturing industries in
the four principal cities of the district increased
during June, 1923, as compared with June,
1922, as shown by the following figures based
on the reports of 40 large firms usually em
ploying 501 men or more.
Per Cent
Number
Increase June,
of
Number of Men on Payroll* 1923, over
Firms
June, 1923 June, 1922
June, 1922

Los A n geles..........
Portland ................
San Francisco-----Seattle ....................

16
8
10
6

32,846
9,082
8,133
2,377

26,250
7,811
7,067
2,282

*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 o f firms.

Business Failures
Business failures in this district during the
first six months of 1923 were less, both in num
ber and liabilities, than during the first six
months of 1922. The figures follow:

Employment
A shortage of farm workers became appar
ent in many sections of the district as the de
mand for harvest hands increased toward the
close of June.
Men usually available for
seasonal farm work have apparently found
more remunerative employment in other in
dustries this year, and farmers are experienc
ing difficulty in securing the help necessary
to harvest their crops at the wages they are
offering. The shortage appears to be par

25.12
16.29
15.08
4.16

First H alf
1923

First H alf
1922

N u m b e r .............
1,078
1,148
Liabilities ......... $14,296,328 $19,885,666

Percentage
Decrease 1923
Compared with
1922

6.0
28.1

In the country as a whole, the record for the
first six months of 1923 compared with the
same period in 1922 shows a decline of 27.3
per cent in the number of failures and of 30.6
per cent in the liabilities of failures involved.
The record of business failures in the states
of this district during June, 1923, shows a de

109

FEDERAL RESERVE AG EN T A T SAN FRANCISCO

cline of 27 per cent in the number of failures
as compared with both May, 1923, and June,
1922. Liabilities of failures during June, 1923,
were respectively 21 per cent and 37 per cent
less than those of failures reported for May,
1923, or June, 1922, and were smaller than in
any month since February, 1921. The average
liabilities of business failures during June, 1923,
were $10,478, compared with $9,657 in May,
1923, and $12,248 in June, 1922.
R. G. Dun and Company’s figures of the
number and liabilities of business failures in
the states of this district during June, 1923,
and May, 1923, follow:
N o.

A r i z o n a ..........................
C a lifo rn ia .............. 74
Idaho ......................
5
N e v a d a ...........................
Oregon ..................
22
Utah .......................
8
W a s h in g to n .........
41
D is t r ic t .............. 150

June. 1923
Liabilities

N o.

..2
$ 849,910
93,489
..
203,751
16,701
407,120
$1,570,971

M ay, 1923
Liabilities

45,500
109
742,669
7
40,137
3
16,074
32
272,003
10
56,089
44
826,584
207

$1,999,056

NO. OF F A IL U R E S

LIABILITIES IN M ILLION S

---- 1250

10
A NO OF

200
150
IOO

^ L IA B IL IT IE S

50
Q

U__ I__ l_Ll__ I__ U j __1__ lJ j__ t__LJJ__ 1— L_U--- 1--- lJ j__ I__ u u __ i__ U Q

1922

1923

Business Failures, Twelfth Federal Reserve District. 1922-1923

Building Activity
All reports indicate that there has been no
decline in the volume of building construction
in this district during the past month. Plans
of builders for coming months of the year, as
reflected in the figures of building permits
issued in 20 cities during June and the months
immediately preceding, do, however, reveal
a slight decrease in the volume of building
proposed, as compared with that for which
contracts have been let during the past spring.
Building permits issued during June, 1923,
were less in number than those issued during
May, 1923, and were considerably less both in
number and value than the record figures of
March, 1923. They were substantially greater
than the figures for June, 1922. The compari
sons with May, 1923, and June, 1922, are pre
sented in the following table:
Percentage Increase or Decrease (— ) in the Number and Value of
Building Permits
June, 1923. compared with
June. 1922
M ay, 1923

Number of Permits Issued.............
Value of Permits Issued................

Building permits issued in the 20 reporting
cities during the first half of 1923 were greater,
both in number and value, than in any previous
half year of which there is record.
From
January to June, 1923, inclusive, 70,364 permits
valued at $209,483,151 were issued, compared
with 59,482 permits representing construction
valued at $157,287,598 issued during the first

16.4
33.4

—5.7
.5

Building Permits Issued in 20 Principal Cities, Twelfth Federal
Reserve District. 1922-1923

six months of 1922. The increase in 1923
compared with 1922 was 18.2 per cent by
number and 33.1 per cent by value. Accord
ing to the United States Department of Labor
the wholesale price level of building materials
increased 16 per cent in the year period June,
1922, to June, 1923. The greater increase in
the value of construction authorized than in
the cost of building materials is significant in-

(B) Building Permits—
N o.

B e r k e le y ........

L ong B e a c h ..
L os A n g ele s. .
Oakland .........
Pasadena ___
Phoenix .........
P o r tla n d .........
Reno ................
Sacramento . .
Salt Lake City
San D ie g o ____
San Francisco
San Jose..........
Seattle .............
Spokane .........
Stockton ........
T a c o m a ..........

188
91
126
396
5,094
894
39
278
88
1,155
10
282
179
429
868
100
892
241
97
378

D is t r i c t ___ 11,825

Value

N o.

527,175
86,913
242,306
3,422,324
15,074,446
2,751,751
126,650
1,265,854
111,122
2,166,470
19,625
990,485
521,075
1,390,720
4,213,34 6
301,550
5,230,445
426,510
269,560
353,463

216
70
190
239
3,751
773
60
306
45
1,317
22
240
178
379
648
76
892
267
101
386

$39,491,790

10,156

Value

671,800
51,639
433,195
1,123,049
10,652,265
3,381,045
137,375
900,092
140,380
2,230,855
44,200
753,914
738,737
608,326
3,336,701
215,150
2,892,030
391,575
221,060
674,990

$29,598,378

110

M O N T H L Y R EVIEW OF BUSINESS CONDITIONS

asmuch as it indicates that there has been an
increase in the physical volume of building as
well as in its value expressed in dollars. Build
ing materials prices have declined during the
past two months and are now 4.9 per cent
below the recent peak figures of April, 1923.

Bank Debits
The volume of business transacted in this
district during June, 1923, was fully as great
as or greater than in any previous month of
the present year, according to the figures of
debits to individual accounts reported by banks
in 21 principal clearing house centers. An in
crease of 6.4 per cent as compared with May,
1923, was reported, and of 20.7 per cent com
pared with June, 1922. This is the fourteenth
consecutive month during which bank debits
have been greater than in the corresponding
month a year ago, and the sixth consecutive
month during which the increase has exceeded
M I L L I O N S OF D O L L A R S

creased in 17 of the 21 reporting cities. Com
pared with May, 1923, a slight increase was
noted in all cities except Ogden and Pasadena.

Savings Accounts
The total amount in all savings accounts in
75 banks in seven cities increased 2.2 per cent
between May 31st and June 30th, or from
M IL L IO N S

OF D O L L A R S

1000
T O T A L

500
400

S A ^ F R A N C Ii CO

300
L DS

A N G EL

200

100
O A KLAN D

SEA T T LE

50
40

P DRTLAN D

5 A LT L A K E

C IT Y

20
SPO KA N E

10
I

...]__ L__ 1__ L

.i .i

l i t

1922

ilL i

L ..L ..J

1 .,1.... ! . . L

1 923

Savings Accounts in Banks in Seven Principal Cities of the
Twelfth Federal Reserve District. 1922-1923

$898,827,000 to $918,794,000. Increases were
reported by all cities except Spokane where a

Debits to Individual Accounts in 20 Principal Cities, Twelfth Federal
Reserve District. 1922*1923

15 per cent. In the six months period January
to June, 1923, bank debits in 20 reporting cities
(figures for 21 cities not available) totaled
$14,483,194,000, compared with $12,103,037,000
in the corresponding period of 1922, an increase
of 19.6 per cent. As noted in previous reviews,
the increase in debits to individual accounts
during the year period has been considerably
greater than the increase in commodity prices
since the early months of 1922, an indication
that there has been a gain in the physical
volume of business transacted as well as in its
money value.
Considered geographically, bank debits dur
ing June, 1923, compared with June, 1922, in

Berkeley ......................................... $
B o i s e .................................................
Fresno .............................................
Long Beach....................................
L os A n g eles...................................
Oakland ..........................................
Ogden ..............................................
Pasadena ........................................
Phoenix ..........................................
Portland .........................................
Reno .................................................
Sacramento ...................................
Salt Lake C ity ..............................
San D ie g o ........................................
San Francisco...............................
San J ose...........................................
Seattle ..............................................
Spokane ..........................................
Stockton .........................................
Tacom a ............................................
Yakim a ............................................

15,034
12,482
42,753
56,165
644,384
127,060
21,968
29,263
19,406
140,556
10,492
32,326
60,588
42,619
759,692
18,457
164,973
46,627
23,260
42,062
8,635

Total .............................................$2,318,802
*000 Omitted.

Four weeks
ending
June 28.1922

15,544
11,615
37,086
29,132
475,926
79,698
10,615
23,620
18,335
128,370
10,710
58,992
50,402
36,374
667,003
17,900
139,669
43,047
19,966
36,103
9,348

$1,919,455

111

FEDERAL RESERVE AGENT A T SAN FRANCISCO

slight decrease occurred. Savings accounts in
the seven cities are now 16.9 per cent greater
than one year ago. Substantial gains are shown
for all cities, those for Los Angeles and Seattle
being especially large. Detailed changes in the
amount of savings deposits since one month
and one year ago as reported by 75 banks in
seven cities follow:
D
~ .
Per Cent
Number of
Reporting
Banks

O a k la n d *

25.6

1.6

17.4

3.1
3.1

16.5

9.4

2.5

11.2
22.0

2.9

7.9

— 1.5

16.9

2.2

Salt Lake City.

Increase or Decrease (— )
June. 1923. compared
with
June, 1922
M ay, 1923

The increase of $23,000,000 in total discounts
of the Federal Reserve Bank of San Francisco
during the four weeks ended July 11th was
the largest monthly increase during the present
year, and brought discounts on that date to
$84,000,000, the highest figure reported since
October, 1921. Since January 10, 1923, when
they reached the lowest point in recent years,
total discounts of this bank have increased
$61,000,000, or 265 per cent. The increase of
$23,000,000 between June 13th and July 11th
was apparently due to more than seasonal in
fluences. During the same four weeks in 1922
total discounts increased $2,000,000; in 1921
they decreased $3,000,000; and in 1920 they in
creased $5,000,000.

*Includes one bank in Berkeley which was form erly a branch of
an Oakland bank.

Banking and Credit Situation
Although in June both total loans and total
deposits of 66 reporting member banks in the
principal cities of the district reached new
high points on the upward movements begun
in 1922 and 1921, respectively, they declined
during the latter days of the month and on
July 3rd loans were but $1,000,000 and deposits

400

M I L L I O N S OF DO LLA RS

300

320r
TOTAL

260

R E S E R V 'E S

\
r \

240
200

V rF E D E R A L

rU /
F ESERVE

NOTE

V J

/
r

1922

C IR C U L A T IO N

1923

Total Deposits, Loans and Discounts, Investments, and Bills Payable
and Rediscounts of Reporting Member Banks

160
120
IN V E S T Ì l E N T S ^

•V

e * * '*

— * ' T O T A L B IL L S

V
1

D IÎ C O U N T E

1 1..... ..._ l___ 1___
1922

..... ,1___ L.

)

1 .. 1
1923

___ 1___ 1___

Total Reserves, Federal Reserve Note Circulation, Bills Discounted,
and Investments, Federal Reserve Bank of San Francisco

$7,000,000 above the figures of June 6th. In
vestments during the four week period in
creased $3,000,000, but on July 3rd were still
slightly below the 1923 high point reached in
May.
These changes signify comparative
stability in the volume of credit extended by
these banks during recent weeks. The slowing
down in the rate of loan expansion is in part
of a seasonal character.
During May and
June, 1922, a similar decline was noted.

On January 10, 1923, the city banks of the
district were borrowing from the Reserve bank
$14,000,000 and the country banks were bor
rowing $19,000,000. On June 13th the city
banks were borrowing $43,000,000 and the
country banks $25,000,000. On July 3rd the
city banks were borrowing $50,000,000 and the
country banks $27,000,000. Most of the in
crease in city bank borrowings has occurred at
San Francisco.
Accompanying the increase in total discounts
of the Federal Reserve Bank there has been a
steady decline in the bank’s investments,
amounting to $16,000,000 during the four weeks
ended July 11th. Total earning assets there
fore increased only $7,000,000 during the
period.
The first noteworthy increase for
several months in the amount of Federal Re
serve Notes in circulation has occurred re
cently. The increase during the four weeks

112

M O N T H L Y REVIEW OF BUSINESS CONDITIONS

ended July 11th was $15,000,000. How much
of it was due to holiday requirements is not
yet ascertainable.
Since April 25th, when
notes in circulation were the smallest in recent
years, they have increased $21,000,000.
The tendency of interest rates at New York
to seek slightly lower levels, which became
noticeable the latter part of April, did not con
tinue during the second half of June and the
first week of July. The rate on time money at
that center rose one-quarter of 1 per cent to
5 } i per cent during the three weeks ended
July 7th. The prevailing rate on commercial
paper continues at 5 per cent. The average
rate charged by San Francisco banks on prime
paper of customers continued at S y 2 per cent
during June.

Rates on acceptances remained at A 1
/^ per
cent during June. Reports received by this
bank from 35 of the principal accepting banks
of the district show the following changes in
the amount of bills purchased and accepted
during June, 1923, compared with May, 1923,
and June, 1922:
Jane, 1923, compared with
M ay, 1923
June. 1922

Am ount of bills accepted . .
Am ount of bills b o u g h t ____
Am ount of bills held at close
of m o n t h ...............................

+ 1 0 .9 %
— 39.6%

+ 3 3 .6 %
— 24.3%

— 18.7%

— 8.6%

The principal commodities upon which these
acceptances were based were coffee, sugar,
rice, grain, raisins, and canned fruits and vege
tables.

PRINCIPAL RESOURCE AND LIABILITY ITEMS OF REPORTING MEMBER BANKS IN RESERVE
CITIES IN TWELFTH FEDERAL RESERVE DISTRICT
July 3,1923

N u m b e r o f R e p o r t in g B a n k s ..........................................................................

66*

June 6,1923

July 5,1922

66*

68*

Loans and Discounts (including rediscounts)........................................ $1,000,985,000

$ 999,912,000

$ 857,278,000

Investments .............................................................................................................
366,017,000
Cash in Vault and with Federal Reserve B an k......................................
119,307,000
Total D e p o s it s ....................................................................................................... 1,321,379,000
Bills Payable and Rediscounts with Federal Reserve Bank...........
50,247,000

362,709,000
122,060,000
1,314,502,000
43,056,000

325,910,000
105,516,000
1,169,037,000
16,275,000

•M ergers have reduced the number o f reporting banks, but comparisons o f resource and liability items have not been affected.

COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN
AT CLOSE OF BUSINESS, JULY 11. 1923

FRANCISCO

RESOURCES
July U . 1923

June 13. 1923

July 12. 1922

T otal R e s e r v e s .......................................................................................................$262,567,000
Bills D isc o u n te d .................................................................................................... 84,078,000
Bills Bought in Open M arket.......................................................................
18,827,000
United States Government Securities........................................................
9,185,000

$261,598,000
60,629,000
24,962,000
19,210,000

$253,765,000
43,990,000
15,264,000
62,104,000

Total Earning A sse ts......................................................................................... $112,090,000

$104,801,000

$121,358,000

A ll Other Resources*.........................................................................................

62,293,000

T otal Resources..................................................................................................$436,950,000

56,579,000

49,840,000

$422,978,000

$424,963,000

$ 23,077,000
154,047,000
202,441,000

$ 22,617,000
142,422,000
218,939,000

L IA B IL IT IE S
Capital and Surplus..............................................................................................$ 23,038,000
Total D e p o s it s ....................................................................................................... 153,206,000
Federal Reserve N otes in Actual Circulation.......................................... 217,423,000
A ll Other Liabilities-)-.........................................................................................

43,283,000

Total Liabilities..................................................................................................$436,950,000
♦Includes “ Uncollected Item s” .......................................................................
■¡■Includes “ Deferred Liability Item s” ........................................................

45,564,000
41,503,000

43,413,000
$422,978,000
43,363,000
41,582,000

40,985,000
$424,963,000
43,303,000
35,991,000

T h o s e d esirin g th is review sent th e m reg u la rly w ill receiv e it w ithout ch arge u p o n ap p lication.

Full text of Economic Review (Federal Reserve Bank of San Francisco) : July 16, 1923

FRASER