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MONTHLY REVIEW OF B U S IN E S S C O N D IT IO N S Fed eral R e se rve A g e n t F e d e ra l R e se rv e B a n k o f San F rancisco V o l. X I X San F ra n cisco , C aliforn ia , June 20, 1935 N o. 6 T W E L F T H F E D E R A L R E S E R V E D IS T R IC T C O N D IT IO N S T w e lfth D is tr ic t b u sin ess w a s s o m e w h a t less a ctiv e in M a y than in A p ril. In d u stria l o u tp u t d eclin ed and m ea su res o f tra d e tu rn ed d o w n w a rd d u rin g the m o n th . R e sid e n tia l b u ild in g co n tin u e d to rise, a lth o u g h p erm its and aw ard s fo r oth e r ty p e s o f c o n s tr u c tio n d eclin ed . In the P a cific N o r th w e s t, in d u stria l o p e r a tion s w e re sh a rp ly cu rta iled b y th e strik e o f lu m b e r m ill w o rk e rs and lo g g e r s in the D o u g las fir area. D e s p ite an in cre a se d o u tp u t o f lu m b e r in the w e ste rn pin e re g io n , th is b a n k ’s se a so n a lly a d ju ste d in d e x o f lu m b e r p r o d u ctio n fo r the d istrict d e clin e d b e tw e e n A p r il and M a y fro m 53 p e rce n t to 39 p e rce n t o f th e 19231925 a v era g e. D e p e n d e n t in d u stries w e re a d v e r s e ly a ffected . In o th e r s e ctio n s o f th e d is trict, a fter a llo w a n ce fo r a m o re than season al d eclin e in v e g e ta b le c a n n in g w h ic h fo llo w e d u nu su al a ctiv ity in A p ril, n o m aterial ch a n g e in o u tp u t o f o th e r in d u stries w a s in d ica te d b y av ailable data. O p e ra tio n s at a u to m o b ile as se m b ly p lan ts and tire fa cto r ie s w e re red u ced m od era tely . O n the o th e r hand, o u tp u t o f b o th cru d e oil and refined p e tro le u m p ro d u cts w a s so m e w h a t g re a te r than in the p r e c e d in g m on th . A c tiv itie s at m o tio n p ictu re stu d io s w e re e x pan d ed and w o r k on n o n -fe rr o u s m eta ls p r o p erties w as w e ll m aintain ed. R e fle c tin g in part a la rg e d e clin e in lu m b e r sh ip m en ts, in d u stria l fr e ig h t ca rlo a d in g s d e crea sed , w h erea s a m o d e ra te e x p a n sio n is c u s to m a ry in M a y . M e rch a n d ise and m is c e l la n eou s lo a d in g s a lso d eclin ed . R e c e s s io n in d ep a rtm en t store sales w a s la rg e r than usual, p a rticu la rly in the P a cific N o r th w e s t w h e re a m arked im p r o v e m e n t w a s re c o rd e d in the p re c e d in g m on th . Sales o f n e w a u to m o b ile s d e clin ed su b sta n tia lly fr o m th e re la tiv e ly h ig h lev els o f A p ril. A n in crea se in in tercoa sta l traffic d u rin g M a y a p p r o x im a te ly o ffs e t a sharp d e clin e in A p ril, a sso cia te d w ith th e recen t strike o f tan k er seam en. E a s tb o u n d p e tro le u m sh ip m en ts w e re d o u b le th o se fo r A p r il. E x c e p t in g slig h t d a m a g e b y fr o s ts and so m e sh o rta g e in rain fall in th e P a c ific N o rth w e s t, w ea th er co n d itio n s fa v o r e d th e g r o w t h o f cro p s d u rin g M a y . A lth o u g h cu rre n t estim a tes are s u b je c t to co n sid e ra b le re v isio n as the season p ro g re sse s, the p resen t o u tlo o k is fo r la rg e r g ra in and field c r o p s than in 1934. T h e su p p ly o f citru s fru its is e x p e c te d to be u n u su a lly la rg e, b u t fo re ca sts in d ica te a sm a ller o u tp u t o f d e cid u o u s fru its th is y e a r than last. F o ra g e on liv e s to ck ra n ges w a s p len tifu l d u rin g M a y , w h ile th ere w a s a sm a ller n u m b er o f anim als g r a z in g than in m o s t o th e r recen t years. P rices o f fa rm p r o d u c ts flu ctu a ted w ith little net ch a n g e fro m m id -M a y to m id -J u n e at levels c o n s id e r a b ly h ig h e r than a y e a r earlier. In te re st rates ch a rg e d cu sto m e rs b y ban ks and se cu rity b ro k e rs d e clin e d fu rth er in the five w e e k s e n d in g J u ne 19. M o s t ban k s in San F r a n c is c o and L o s A n g e le s a n n o u n ce d a re d u ctio n in the rate o f in terest paid o n sa v in g s d e p o sits e ffe c tiv e J u ly 1. F o r several m on th s, rates p aid in m o s t o th e r reserv e cities o f the d istrict h ave been at th e 2 p ercen t rate w h ich w ill b e e ffe ctiv e a fte r J u ly 1 in all o f the la rger c ities o f this re g io n e x ce p t P o rtla n d , w h ere the rate w ill be 1 % p ercen t. L o a n s and in v e stm e n ts o f d istrict banks sh o w e d little ch a n g e d u rin g the five w e ek p e rio d , b u t a m o d e ra te d eclin e in d e p o sits o c cu rred . T h is c ircu m s ta n c e reflects, in part, a su b sta n tia l net tra n sfe r o f fu n d s o u t o f th e d is tr ic t fo r th e a c c o u n t o f ban k s and th e ir c u s to m e rs w h ic h w a s o n ly p a rtia lly o ffs e t b y T r e a s u r y d isb u rsem e n ts in e x ce ss o f c o lle c tio n s in the d istrict. U n ite d States T r e a s u ry c o lle c tio n s w e re u n u su a lly la rg e b eca u se o f a retu rn b y ban k s o f a d d itio n a l p osta l sa v in gs fu n d s and b e ca u se o f fu rth e r d e p o sits b y na tion a l ban ks to retire lia b ility fo r th eir c ir c u la tin g n otes. Agriculture W e a th e r co n d itio n s w e re g e n e ra lly fa v o r able th r o u g h o u t m o s t o f the d istrict d u rin g M a y , a lth o u g h a d d itio n a l rainfall w o u ld h ave b een b en eficia l to g r o w in g cro p s in the P a cific N o rth w e s t. S u m m e r and fa ll liv e sto ck ra n ges are in fa ir to g o o d co n d itio n and feed and w a ter su p p lies are co n s id e re d adequ ate. 42 MONTHLY REVIEW OF BUSINESS CONDITIONS June 1935 P r o d u c t io n estim a tes fo r b o th th e cu rre n t g r o w n u n d er e x c e lle n t w e a th e r c o n d itio n s th is V a le n c ia o r a n g e c r o p and th e 1934-1935 le m on y ea r, and p r o d u c tio n is e x p e c te d to b e a b o u t c ro p in C a lifo rn ia ch a n g e d little d u r in g M a y . 891,000 ton s. T h is is o v e r 60 p e r c e n t la rg e r T h e m a rk et s u p p ly o f o ra n g e s and le m o n s b e than last y e a r ’s c r o p and 40 p e r c e n t m o re th a n tw een n o w an d n e x t N o v e m b e r , w h e n n ew a v e ra g e annual p r o d u c tio n d u rin g th e la st five cro p s b e g in to m a tu re, is e x p e c te d to b e la rg er years. T r a d e in th e San F r a n c is c o m a rk et in b y a co n sid e r a b le a m o u n t than in a n y p re 1934 c r o p b a rle y w a s s lo w and p rice s d e clin e d v io u s y ea r. P r ic e s re c e iv e d b y g r o w e r s fo r co n s id e r a b ly d u rin g M a y and ea rly Ju ne. o ra n g e s h a v e a p p r o x im a te d th o se o f last y e a r G r o w in g h o p s are in g o o d to e x c e lle n t c o n d esp ite h e a v y sh ip m en ts. L e m o n p rice s are d ition . T h e h op m a rk et has b een in a ctiv e, w ith n o w less than h a lf as h ig h as in M a y 1934. g r o w e r s a w a itin g th e o u tc o m e o f th e p ro p o s e d T h e c o n d itio n o f w in te r w h e a t in O r e g o n h o p m a rk e tin g a g re e m e n t w h ic h has been s u b an d W a s h in g t o n d e clin e d d u r in g M a y due m itte d to th em fo r a p p ro v a l. ch ie fly to la ck o f ra in fa ll, and th e fo r e c a s t o f A lth o u g h m o s t d e cid u o u s fru its m a d e fa v o r T w e lft h D is tr ic t p r o d u c tio n w a s re d u ce d b y ab le g r o w t h in C a liforn ia d u rin g M a y , tota l 3,000,000 b u sh e ls. N o re p o rts h a v e b een issu ed p r o d u c tio n w ill b e m o d e r a te ly sm a lle r th an last as to p r o d u c tio n o f s p r in g w h ea t, b u t c o n d i y e a r and b e lo w th e a v e ra g e an n u al o u tp u t o f tio n estim a tes m a d e o n J u ne 1, a lth o u g h b etter re ce n t y ea rs a c c o r d in g to Ju n e 1 estim a tes. D u e than a y e a r a g o are c o n s id e ra b ly b e lo w the to c o ld d am p w e a th e r d u rin g th e s p r in g m o s t te n -y e a r a v e ra g e fo r th at date. T r a d e re p o rts fru its w ill m a tu re fr o m fo u r to s ix w e e k s later estim a te th at th ere w ill b e a c a r r y o v e r o f 15 than last y e a r and a b o u t t w o w e e k s later th an m illio n b u sh e ls o f w h e a t, m o s tly o f e x p o r t v a n orm a l. T h e p e a ch c r o p w a s estim a ted o n rieties, in th e P a cific N o r th w e s t o n J u ly 1. J u n e 1 to be 416,000 to n s, co m p a r e d w ith 495,D is tr ic t w h e a t m a rk ets h ave b een in a ctiv e w ith 000 ton s last year. E a rly ta b le v a rie ties are fa rm ers h o ld in g re m a in in g s to c k s fo r b etter n o w b e in g sh ip p e d to m a rk et. T h e pear c ro p p rices. F o llo w in g the C h ic a g o m ark et, p rice s in C a liforn ia , w h e re m o re th an o n e -th ird o f th e d e clin e d s te a d ily d u rin g M a y and ea rly June. tota l U n ited S ta tes c r o p is o rd in a r ily g r o w n , A lth o u g h c o ld w e a th e r d u rin g th e ea rly part has b een d a m a g e d b y sca b in fe s ta tio n and o f M a y d e la y e d s e e d in g and n e ce ssita te d the h e a v y fru it d ro p . A t p re se n t th e p r o d u c tio n r e s e e d in g o f s o m e bea n a cre a g e in C a liforn ia , fo r e c a s t is 182,000 to n s, th e s m a lle st sin ce p la n tin g w a s p r a c tic a lly c o m p le te d b y m id 1927. T h is estim a te is 22 p e rce n t b e lo w p r o June. E a r ly p la n te d bean s g r e w w e ll d u rin g d u c tio n in 1934 and 20 p e rce n t less than th e th e last h a lf o f M a y and e a rly Ju ne and w e re annual a v e ra g e ou ttu rn fr o m 1928 th r o u g h 1932. g e n e r a lly in g o o d co n d itio n . A w e ig h te d a v e r C o n d itio n s h a ve b een m o r e fa v o ra b le fo r d e ag e p rice , f.o .b . c o u n tr y s h ip p in g p o in ts, o f th e cid u o u s fru it g r o w e r s in th e P a c ific N o r th w e s t e lev en p rin cip a l v a rie tie s g r o w n in C a liforn ia th an in C a liforn ia . N o tw ith s ta n d in g a p ro b a b le d e clin e d s lig h tly d u rin g M a y b u t at $4.82 p er d e clin e o f 8 p e rce n t in the d is tr ic t’s p ear p r o h u n d re d p o u n d s at th e end o f th e m o n th it re d u ctio n as co m p a r e d w ith 1934, o u tp u t in the m a in ed 20 p e r c e n t h ig h e r than a y e a r earlier. P a c ific N o r th w e s t is e x p e cte d to e x ce e d th at o f M o v e m e n t o f C a lifo rn ia b ean s in to tra d e ch a n last y ea r b y 12 p ercen t. T h e a p p le c r o p is re n els co n tin u e d to e x ce e d that o f la st year. p o rte d to b e in g o o d c o n d itio n in all o f th e im S to ck s o f bean s, w h ich a m o u n te d to 1,111,337 p o rta n t c o m m e r cia l p r o d u c tio n areas. b a g s o n M a y 1 w e r e re d u ce d b y 262,755 b a g s R e ce ip ts o f e g g s at p rin cip a l d is tr ict m ard u rin g M a y . A y e a r a g o , 168,195 b a g s w e re sold d u r in g M a y , r e d u cin g to ta l sto ck s to Agricultural Marketing Activity— 1,107,431 b a g s o n J u n e 1, 1934. M a rk e tin g s d u r t---------- M ay--------- N t---- Season to Date---Carlot Shipments 1935 1934 1935 1934 in g M a y o f th e p a st five y ea rs h a v e a v e ra g e d Apples and Pears. 752 1,011 56,451 48,39? 204,121 b a g s. Citrus Fruits . . . . 9,921 8,158 49,869 38,281 Vegetables .......... 11,080 13,033 61,236 64,49$ S e e d in g o f th e C a lifo rn ia rice cr o p , d e la y e d Exports b e ca u se o f w e t s o il co n d itio n s, a d v a n ce d Wheat ( b u .) ............................ 1,086,766 2,801,193 18,944,30! Barley (bu.) . . . . 65,500 344,958 3,799,327 5,330,93: ra p id ly d u r in g late M a y and w a s c o m p le te d b y Receipts* m id -J u n e . T h e to ta l p la n ted a cre a g e is e x Cattle .................. 69,707 75,631 376,740 389,97p e cte d to b e w e ll b e lo w last y e a r ’s h a rv e ste d Hogs .................... 121,915 173,695 707,933 1,060,051 Sheep .................. 551,320 510,959 1,475,940 1,357,11 a crea g e. D u r in g th e first w e e k o f J u ne a la rg e Eggs (cases)___ 212,918 189,485 920,253 894,71Butter (lb s .)........ 8,753,905 8,378,726 31,690,994 33,538,58 p r o p o r tio n o f th e to ta l su p p ly o f rice re m a in in g Wheat (carlots) . . 3,191 3,150 47,252 53,62 in g r o w e r s ’ h an d s at th e b e g in n in g o f the Barley (carlots).. 397 594 7,672 6,11 Storage Holdings* , 1935-------^ ,------------1934----------m o n th w a s so ld at m a x im u m p rice s p r o v id e d (end of month) May April May April u n d er th e A g r ic u ltu r a l A d ju s tm e n t A d m in is Wheat (bu.)........ 1,808,000 2,426,000 3,455,000 4,303,00 Beans (bags)___ 849,000 1,111,000 1,107,000 1,276,00 tra tio n m a r k e tin g a g reem en t. Butter (lbs.)........ 3,988,000 436,000 4,820,000 1,652,00 T h e C a lifo rn ia b a r le y c ro p , u su a lly c o m p r is Eggs (cases) ___ 557,000 391,000 658,000 45 9,00 in g a b o u t 70 p e r c e n t o f th e d is tr ic t’ s tota l, w a s *A t principal district markets. June 1935 FEDERAL RESERVE AGENT AT SAN FRANCISCO kets in crea sed fro m 206,000 ca ses in A p r il to 213,000 cases in M a y . R e ce ip ts d u rin g the y e a r to date h ave b een h e a v ie r th an in a n y y ea r sin ce 1930. T h e p rice o f U n ite d S tates extras in San F ra n c is c o a d v a n ce d fr o m 2 4 ^ cen ts per d o zen on the first o f M a y to cen ts at the end o f the m o n th and w a s u n ch a n g e d d u rin g the first tw o w e e k s o f June. M o v e m e n t in to sto ra g e has b een s lo w in sta rtin g th is y e a r and on Ju n e 1 sto ra g e s to ck s w e re less than on th at date in a n y o f th e last five years. B u tter re ce ip ts in L o s A n g e le s , San F ra n c is co , and P o rtla n d in crea sed as is usual d u r in g M a y , b u t re ce ip ts fo r th e y e a r to date w ere 6 p e rce n t less than last y e a r and a b o u t the sam e as th e a v era g e fo r th ese m o n th s d u rin g the fiv e -y e a r p e rio d 1929-1933. D is tr ic t ra n g es w e re in g o o d to e x ce lle n t co n d itio n on J u ne 1 and a p p r o x im a te ly the sam e as o r a b o v e th e te n -y e a r a v e ra g e in all states e x c e p t O r e g o n and W a s h in g to n , w h ere rain is n eed ed . L a te ra n g es and fall fe e d are ex p e cte d to b e g o o d th r o u g h o u t the district. H e a v ie r than usual sn o w p a c k s o n the h ig h er ra n ges a ssu re a d eq u a te fo r a g e and s to c k w ater. C attle m a d e g o o d g a in s d u rin g M a y , b u t p r o g ress w as h eld b a ck in so m e areas b eca u se o f co ld w e t w ea th er. T h e r e is a g o o d su p p ly o f g ra ss-fa t ca ttle in C a liforn ia and A r iz o n a and g r o w e r s h a ve been r e c e iv in g th e h ig h e s t p rices sin ce 1930 fo r th e ir s to ck . L o c a l and m id w estern m a rk ets are ta k in g la rg e a m ou n ts o f th ese cattle. S h eep th r o u g h o u t the d is trict are g e n e ra lly in g o o d co n d itio n and this se a s o n ’s la m b in g and sh ea rin g o p e ra tio n s h ave been p r a ctic a lly finished. T h e la m b c r o p w a s b e lo w a v e ra g e e x ce p t in A r iz o n a and C a lifo rn ia w h e r e it w a s b etter than n orm a l. A b o u t 551,000 C a lifo rn ia lam bs, b o th liv e and d ressed , w e re sh ip p ed east th is y ea r, a p p r o x im a te ly 27,000 h ead less than w e re sh ip p e d in th e p eak y e a r o f 1929. B o th th e p e rce n ta g e and th e a ctu a l n u m b e r o f fa t lam b s sh ip p e d w e re la r g e r than in a n y p r e v io u s yea r. P r ic e s re c e iv e d b y g r o w e r s , al th o u g h m o d e ra te ly lo w e r th an last y ea r, w e re h ig h e r than in a n y y e a r sin ce 1930. W o o l p rice s a d v a n ce d sh a rp ly d u rin g the la tter p art o f M a y . A s is u su al p re v a ilin g field p rices v a r y c o n s id e r a b ly in th e d istrict, ra n g in g fr o m 14 to 28 cen ts p er p o u n d , d e p e n d in g u p o n the lo ca tio n and q u a lity o f th e w o o l. 26J /2 In d u s tr y In d u stria l a ctiv ity in th e T w e lft h D is trict, e x c e p t in th o se areas a ffe cte d b y th e strik e o f lu m b e r m ill w o rk e rs and lo g g e r s , sh o w e d , w ith m in o r e x ce p tio n s, a b o u t th e usual sea son a l ch a n g e s fr o m A p r il to M a y . In th e D o u g la s fir re g io n , h o w e v e r, lu m b e r p r o d u c tio n and sh ip 43 m en ts w e re su b sta n tia lly re d u ce d and d e p e n d ent in d u stries w e re a d v e rse ly a ffected . T h e s e c o n d itio n s w e re re fle cte d in a sharp re d u ction in e m p lo y m e n t and p a y ro lls in th e P a cific N o rth w e st. A m od era te re d u ctio n in tota l in du strial em p lo y m e n t w a s re p o rte d fo r C aliforn ia. E x c lu d in g the e x tr e m e ly irre g u la r fru it and v e g e ta b le ca n n in g in d u stry , h o w e v e r , this b a n k ’ s se a son a lly a d ju sted in d e x o f e m p lo y m e n t in C a lifo r nia in d u stries a d v a n ce d 1.7 p e rce n t to 79 p e r ce n t o f the 1923-1925 av era g e. A t th is p o in t the in d e x fo r M a y is as h ig h as in a n y m o n th sin ce June 1931. S u b sta n tia l in crea ses in e m p lo y m e n t w e re re p o rte d fo r w o o d m a n u fa c tu res and fo r th e c a n n in g and p a c k in g o f fish. E m p lo y m e n t at m o tio n p ictu re stu d ios, w h ich d e clin e d d u rin g M a rch and A p r il fr o m the rela tiv e ly h ig h lev els o f th e tw o p re c e d in g m on th s, in crea sed m o d e r a te ly in M a y . T o ta l in du strial p a y ro lls d e clin e d s lig h tly fro m A p r il to M a y . C rud e o il p r o d u c tio n in C a liforn ia a v e ra g ed 495,000 b arrels d a ily d u rin g M a y , an in crea se o f 22,000 barrels o v e r the p r e ce d in g m on th . A t this rate, o u tp u t w a s a b o u t th e sam e as th e F e d e ra l a g e n c y a llo w a b le o f 494,200 b a rrels d aily. T h e U n ite d States S u p rem e C ou rt d e cisio n d e cla rin g the N a tio n a l In d u stria l R e c o v e ry A c t u n co n stitu tio n a l had a n o tice a b le e ffe ct on the o il in d u stry in C a lifo rn ia d u rin g th e first h a lf o f June. C a lifo rn ia has n o state le g isla tio n fo r lim itin g p e tro le u m o u tp u t, and w ith th e w ith d ra w a l o f F ed era l re g u la tio n a v o lu n ta ry cu rta ilm e n t a g re e m e n t w a s a d o p te d p la c in g th e Ju n e a llo w a b le at 512,700 b a rrels d aily. D e s p ite th is a ctio n , cru d e o il p r o d u c tio n a v er a g e d 561,300 and 575,200 b a rrels d a ily in the Employment— t--------- California-------- x t------------ Oregon----------- No. of No. of No. r— Employees No. /— Employees — * of May May of May May Firms 1935 1934 Industries Firms 1935 1934 18,739 All Industries* . . . 1,060 145,095 140,654 112 18,184 (+3.1) Stone, Clay, and (+3.2) 170 3 152 Glass Products. 54 6,274 5,908 ( + 11. 8) Lumber and Wood ( + 6.2) Manufactures . . 100 12,670 11,634 37 9,887** 9,370 ( + 8.9) ( + 5.5) 1,952 8 1,745 Textiles ................ 14 1,880 1,619 ( + 11.9) Clothing, Millinery, (+16.1) and Laundering. 130 9,772 9,784 179 159 St ( + 12.6) Food, Beverages, ^ 31 1,824 and Tobacco . . 267 35,240 37,013 1,576 (— 4.8) (— 13.6) Public Utilities . . . 46 44,529 44,648 (— .3) Other Industriesf. 451 68,470 65,023 ( + 5.3) Miscellaneous . . . . 44 10,789 9,673 28 4,975 4,934 (+0 .8 ) Wholesale and (+11.5) Retail................ 221 35,074 33,253 ---------: ( + 5.5) *Public utilities and wholesale and retail figures not included in this total, flncludes the following industries: Metals, ma chinery, and conveyances; leather and rubber goods; oils and paints ; printing and paper goods. ^Laundering only. ^ I n cludes some of the workers on strike. Figures in parentheses indicate percentage change from May 1934. 44 MONTHLY REVIEW OF BUSINESS CONDITIONS w eek s e n d in g th e e ig h th and fifteen th o f June, r e s p e ctiv e ly . F e w ch a n g e s, h o w e v e r, w e re re p o rte d in th e cru d e o il p rice stru ctu re. A lm o s t im m e d ia te ly a fte r th e a b a n d o n m e n t o f the F e d eral c o d e ca m e a n n o u n ce m e n t o f th e d iss o lu tio n o f th e P a c ific C o a st A g e n c y M a rk e tin g A g r e e m e n t an d th is w a s fo llo w e d b y rather su b sta n tia l re d u c tio n s in retail g a s o lin e p rices in sou th e rn an d cen tra l C a liforn ia . W h ile sh a rp ly c u rta ilin g tota l lu m b e r o u tp u t in th e d istrict, th e e ffe ct o f th e strik e o f m ill w o rk e rs an d lo g g e r s has n o t b e e n u n ifo rm in th e sev era l p r o d u c in g areas. T h e d istu rb a n ce has been r e stricte d to th e D o u g la s fir re g io n , w h ere p r o d u c tio n fo r th e m o n th w a s red u ced to less th an h a lf th a t fo r A p r il. In th e w e s te rn pin e d istrict, h o w e v e r , o u tp u t has been m a rk e d ly stim u la te d . UNADJUSTED INDEXES OF LUMBER PRODUCTION BY AREAS—Twelfth District (1923-1925 average—100) ,------------------ 1935-------------------, Area May April March 26 61 57 Douglas f i r ........................................ Western pine .................................... 8111 52 37 Redwood ............................................ 5111 48 43 Total ................................................... 441Í 58 50 If Preliminary. C on tra cts le t fo r p u b lic w o rk s a m o u n te d to 12 m illio n d o lla rs d u rin g M a y , so m e w h a t sm a ller th an in A p r il, b u t a b o u t th e sam e as th e a v e ra g e fo r th e first five m o n th s o f this y ea r. C o n tra cts a w a rd e d fo r th is ty p e o f c o n stru ctio n w o r k h a v e n o t b een as g re a t th u s far this y e a r as in c o r r e s p o n d in g m o n th s o f last y ea r, w h e n F e d e ra l a w a rd s w e r e b e in g m a d e on a la rg e r scale. V a lu e o f p erm its is su ed fo r p riv a te co n s tru c tio n , w h ile re m a in in g s u b sta n tia lly a b o v e th at fo r a y e a r earlier, d e clin ed b e tw e e n A p r il and M a y . T h e en tire re- Industry— Indexes of daily average production, adjusted for seasonal (1923-1925 daily average=100) ,----------- 1935------------V May Apr. Mar. Feb. May General 44 54 50 Carloadings— Industrial. 4211 55 155 Elec. Power Production 15311 14811 152 154 Manufactures 53 54 61 Lumber ........................... 3911 53 130 124 126 127 Refined Mineral Oilst. . 97 93 Flour .............................. 1171Ï 114 107 74 58 53 59 64 101 98 132 Wool Consumption!.. . . 1321Í 139 91 97 111 Slaughter of Livestock. 1001Ï 94 Minerals 74 76 72 75 Petroleum (California)! 75 55 50 66 58 Lead (United States).? 44 50 65 51 Silver (United States) $. Building and Construction# 42 29 36 37 T otal................................. 37 Building Permits— Value 21 21 18 17 10 Larger Cities.............. 25 21 19 Smaller Cities............ 28 23 Engineering Contracts Awarded— V alue 61 60 61 80 56 T o ta l............................ 114 Excluding Buildings.. 109 104 121 167 variation 1934 ------- , Apr. Mar. 47 49 154 149 54 131 98 73 89 105 63 128 106 76 71 103 73 56 45 72 57 47 29 34 10 11 61 114 136 19 19 66 tN ot adjusted for seasonal variation. ^Prepared by Federal Re serve Board. #Indexes are for three months ending with the month indicated, flPreliminary. June 1935 d u c tio n o c c u r re d in n o n -re s id e n tia l p erm its sin ce resid en tia l b u ild in g co n tin u e d to in crea se in M a y , re a ch in g th e h ig h e st le v e ls o f th e year. D e m a n d fo r m o s t b u ild in g m a teria ls has been m o re a ctiv e th u s fa r d u rin g 1935 than in o th e r re ce n t yea rs. D e s p ite th e d is tu rb in g in flu en ce o f th e lu m b e r strik e, sh ip m e n ts and o rd e rs re p o rte d b y re p re se n ta tiv e g r o u p s o f m ills in the P a c ific N o r th w e s t d u r in g th e first five m o n th s o f th is y e a r w e re a p p ro x im a te ly 20 p e r c e n t la rg e r th an d u r in g th e c o r r e s p o n d in g p e rio d o f 1934. O u tp u t, h o w e v e r , w a s m o d e r a te ly lo w e r, the re d u c tio n re s u ltin g e n tirely fr o m re stricte d O perations d u rin g M a y . B rick and tile p lan ts, p la n in g m ills, and sash and d o o r fa c to r ie s e x p e rie n ce d th e m o s t a ctiv e five m o n th s sin ce 1931 and m a n u fa ctu re o f p ain ts and va rn ish es has a lso s h o w n s o m e e x p a n sion . S tru ctu ra l steel, u sed fo r th e m o s t p art in h e a v y e n g in e e rin g co n s tr u c tio n , has n o t b een p r o d u ce d lo c a lly in as la rg e q u a n tities th is y e a r as last. A c t iv it y at d istrict ce m e n t plan ts, a lth o u g h b e lo w th at in 1934 w h e n la rg e sh ip m en ts w e re b e in g m a d e fo r th e c o n c r e te w o r k o n B o u ld e r D a m , th e San F r a n c is c o B a y b r id g e s, and th e L o s A n g e le s M e tr o p o lita n W a t e r D is tric t p r o je c t, has e x p a n d e d m o re than se a so n a lly sin ce F e b ru a ry . U n fa v o r a b le w e a th e r d e la y e d o p e ra tio n s at v e g e ta b le ca n n eries this sea son and resu lted in an u n u su a lly h ig h le v e l o f a c tiv ity in C a lifo r nia d u rin g A p r il. T h u s th e d e clin e in ca n n in g a c tiv ity d u rin g M a y re p re se n te d a sea son a l sla ck e n in g o f o p e ra tio n s a fte r p a c k in g o f ea rly v e g e ta b le s, a lth o u g h it w a s la ter th is y e a r th an is usual. T h e sp in a ch p a ck w a s c o m p le te d ea rly in M a y , b u t a sp a ra g u s c a n n in g c o n tin u e d a ctiv e th r o u g h o u t th a t m o n th and ea rly Ju ne. T h e c a r r y o v e r o f C a lifo rn ia ca n n ed fru its h eld b y lo c a l p a ck ers, as o f J u n e 1, w a s a b o u t th e sam e as a y e a r a g o . M o d e r a te re d u c tio n s in c a rr y o v e rs o f p e a ch e s and ch erries w e re a p p r o x im a te ly o ffs e t b y in crea ses in in v e n to rie s Distribution and Trade— ,------------ 1935------------ N ,--------1934-------- , May Apr. Mar. Feb. May Apr. Mar. Indexes adjusted for seasonal variation (1923-1925 average=100) CarloadingsJ . . 64 73 68 74 66 65 64 85 79 79 89 85 89 Merchandise.............. . . 84 Intercoastal Trade . . 76 60 78 65 79 86 95 81 105 Westbound................ . . 93 81 73 88 81 52 82 71 73 61 Eastbound ................ 86 105 Retail Trade Automobile Sales$ 60 61 Total ...................... , . 95 108 107 104 61 Passenger.............. 56 87 103 102 97 55 55 125 118 112 Commercial .......... . . 184 161 154 229 Department Store 80 Sales$ .................... . . 80 83 79 73 74 79 62 61 62 62 Stocks§ .................. 66 64 62 Collections# — -\ 48.9 47.6 48.1 45.2 47.4 44.9 46.2 Regular.............. 17.5 17.5 17.6 Installment ........, . 18.0 17.7 18.6 16.8 $Daily average. §At end of month. #Percent of collections dur ing month to amount outstanding at first of month. June 1935 FEDERAL RESERVE AGENT AT SAN FRANCISCO o f a p rico ts and pears. P rice s o f all m a jo r ca n n ed fru its w e re g e n e ra lly u n ch a n g e d b e tw een m id -M a y and m id -J u n e. S ch ed u les at fish ca n n eries in crea sed sh a rp ly d u rin g M a y , w ith e m p lo y m e n t req u irem en ts n ea rly d o u b le th o se o f A p ril. F lo u r m illin g w a s m ain tain ed at th e le v e ls o f th e tw o p re c e d in g m on th s, a lth o u g h r e ce ss io n is cu sto m a r y at this tim e o f yea r. S la u g h te rin g o f liv e s to c k e x p a n d ed fu rth e r d u rin g M a y b u t c o n tin u e d su b sta n tia lly b e lo w th at o f a y e a r a g o . T rade F r e ig h t ca rlo a d in g s d e clin e d in co n tra st w ith the u su al te n d e n c y fo r M a y , c a u sin g a d rop in th e se a so n a lly a d ju ste d in d e x fr o m 73 to 64 p e rce n t o f th e 1923-1925 a v era g e. T h e d eclin e w a s due p r in c ip a lly to u n u su a lly sm all lu m b e r sh ip m en ts fro m th e P a c ific N o r th w e s t, w h ere strik e co n d itio n s p re v a ile d , a lth o u g h C a liforn ia lo a d in g s fa ile d to ex p a n d as m u ch as is u su al in M a y . M o v e m e n t o f in d u stria l lo a d in g s w a s th e sm a llest sin ce M a y 1933, and m erch a n d ise and m isce lla n e o u s sh ip m en ts w ere s lig h tly u n d e r th ose o f a y e a r earlier, as w e re a lso to ta l lo a d in g s. RETAIL TRADE —Twelfth District Percentage changes in value of sales and stocks (---------- 1935 compared with 1934 ---------,-----NET SALES------ ^STOCKS Jan. 1 to end oi May* May May Department Stores... 9.1 ( 73) 8.0 — 3.9 ( 52) Los Angeles .......... 10.5 ( 6) 8.5 — 11.6 ( 6) Other So. California 14.3 ( 9) 12.9 2.0 ( 6) Oakland .................. 6.4 ( 5) 9.0 2.6 ( 5) 10.8 ( 8) 5.3 — 2.5 ( 7) San Francisco........ Bay Region............ 10.0 ( 18) 6.6 — 0.8 ( 16) Central California.. 18.6 ( 6) 15.2 4.9 ( 5) Portland!................ 16.6 ( 8) 10.2 2.4 ( 7) Seattle...................... — 3.6 ( 4) 5.2 2.5 ( 4) Spokane .................. 0.3 ( 5) 11.0 9.2 ( 5) Tacom a!.................. — 4.1 ( 7) 10.7 10.5 ( 6) 5.2 ( 4) 4.1 — 10.4 ( 3) Salt Lake City........ Apparel Stores .......... 15.5 ( 39) 13.0 —- 3.3 ( 27) Furniture Stores........ 28.1 ( 32) 16.8 — 10.5 ( 25) All Stores .................. 11.6 (144) 9.4 —- 4.7 (104) *May 1935 had the same number of trading days as May 1934. !Includes five apparel stores each in Portland and Tacoma which are not included in district department store total. Figures in parentheses indicate number of stores reporting. A lth o u g h d e p a rtm e n t sto re sales rece d e d b y m o re than th e usual a m o u n t d u rin g M a y , the d eclin e o f th ree p o in ts in th e s e a so n a lly a d ju s te d in d e x to 80 p e rce n t o f th e 1923-1925 a v era g e did n o t w h o lly o ffs e t a g a in in the p re c e d in g m on th . In C a liforn ia , sales w e re o n ly m o d e ra te ly b e lo w th o se o f A p r il, b u t sharp re ce s s io n w a s re p o rte d in th e P a c ific N o rth w e st, w h e re th e lu m b e r strik e and im p o s itio n o f a reta il sales ta x in W a s h in g to n a p p ea r to h ave had a n o tic e a b le e ffe c t on p u rch a ses. Sales in S alt L a k e C ity s h o w e d m o r e th an th e usual e x p a n sion . T o ta l sales w e re 9 p e rce n t h ig h er in M a y o f this y e a r than in M a y a y e a r earlier, and fo r th e y e a r to date th e g a in w a s 8 p ercen t. T h e F a irch ild in d e x o f retail p rice s o f d ep a rt- 45 m en t sto re g o o d s w a s fr a c tio n a lly lo w e r on Ju ne 1 than on M a y 1 and 3 p e rce n t lo w e r than on Ju ne 1, 1934. Sales o f n e w p a ss e n g e r a u to m o b ile s d e clin ed su b sta n tia lly d u rin g M a y , fo llo w in g e x p a n sion in p r e c e d in g m o n th s o f this year. Sales o f n e w co m m e r c ia l v e h icle s co n tin u e d to in crease. A lth o u g h to ta l sales d eclin e d m ore than is cu s to m a r y in M a y , the y e a r-p e rio d c o m p a rison c o n tin u e d e x c e p tio n a lly fa v o ra b le . Sales at w h o le sa le w e re a b o u t th e sam e in M a y as in A p r il, b u t w ere 14 p e rce n t la rg er than a y e a r earlier. WHOLESALE TRADE—Twelfth District May 1935 ,---- compared with---- s Agricultural Implements . Automobile Supplies ........ Drugs ................................ Dry Goods........................ Electrical Supplies.......... Furniture .......................... Groceries .......................... Hardware.......................... Shoes.................................. Paper and Stationery . . . . All Lines .......................... Apr. 1935 1.5 — 5.7 — 4.2 1.9 4.3 — 33.5 — 1.0 3.4 — 13.4 5.2 — 0.6 May 1934 131.6 7.8 5.0 7.0 22.5 2.9 10.7 13.1 — 3.9 19.2 13.5 Cumulative 1935 compared with 1934 52.9 8.5 3.2 5.3 25.0 20.3 13.3 11.3 — 4.2 10.2 11.6 In te rco a sta l traffic th ro u g h the P anam a C anal ex p a n d ed d u rin g M a y . T h a t rise, as w e ll as the d eclin e in A p r il, cam e in ea stb ou n d p e tro le u m ca rg o e s w h ich w ere a ffe cte d b y th e strike o f tan k er seam en. T h e r e w as co n s id e r able ex p a n sion in w e s tb o u n d iron , steel, and tin plate shipm en ts. Bank Debits* — Arizona Phoenix..............$ California Bakersfield........ Berkeley ............ Fresno .............. Long Beach . . . Los Angeles . . . Oakland ............ Pasadena .......... Sacramento . . . . San Bernardino. San Diego ........ San Francisco. . San Jose ............ Santa Barbara. . Santa Rosa . . . . Stockton .......... Idaho May 1935 31,286 $ May 1934 29,419 First five months 1935 1934 $ 149,347 $ 123,062 2,885 13,289 54,539 70,909 97,271 140,687 3,174,627 778,977 104,012 438,349 36,441 191,619 3,674,004 85,485 46,080 17,180 72,644 41,985 103,392 81,864 111,698 2,698,956 787,168 95,247 237,845 28,373 150,332 3,401,894 75,368 39,381 14,882 64,973 10,907 68,026 53,293 10,387 14,905 18,651 27,770 672,908 166,179 20,286 106,489 7,363 41,316 752,545 16,495 8,708 3,667 15,433 8,095 14,652 15,371 21,423 521,129 169,104 18,427 53,258 5,559 27,773 626,954 14,537 14,311 7,773 Nevada 7,921 8,745 37,647 33,902 4,805 21,392 643,463 12,432 4,016 116,876 10,864 58,145 18,423 591,781 48,581 12,875 50,063 11,485 52,197 60,338 255,806 57,315 225,896 4,758 5,744 168,843 37,045 25,445 4,292 10,625 4,547 5,128 139,390 30,110 23,790 3,587 8,513 23,258 26,973 730,576 166,683 118,108 20,559 52,570 22,054 25,251 656,581 132,458 109,562 18,904 44,671 Oregon Portland ............ 132,667 Utah Salt Lake City. . Washington Bellingham . . . . Spokane ............ Tacoma ............ Walla Walla .. . Total .$2,406,214 *In thousands of dollars. $1,979,803 $11,415,715 $10,095,092 MONTHLY REVIEW OF BUSINESS CONDITIONS 46 P r ic e s W h o le s a le c o m m o d ity p rice s as m ea su red b y th e in d e x o f th e U n ite d S tates B u rea u o f L a b o r S ta tistics s h o w e d little n et ch a n g e b e tw e e n M a y 18 an d J u n e 15. S lig h t d e clin e s in a v e r a g e p rice s o f fa rm p r o d u cts and fo o d s w ere a p p r o x im a te ly b a la n ce d b y in crea ses in oth er c o m m o d it y cla ss ifica tio n s. P rice s o f fo o d at retail d e clin e d s lig h tly d u r in g M a y in th e p rin cip a l d istrict p o p u la tio n cen ters, a fte r h a v in g a d v a n ce d sin ce the b e g in n in g o f th e yea r. June 1935 h ave b een w e ll m a in ta in ed b y p rim a ry p r o d u c ers, u n officia l so u rce s h ave r e p o rte d th a t so m e to n n a g e p r e v io u s ly im p o u n d e d u n d er th e c o d e has b een so ld fo r d o m e s tic use b e lo w th is q u o tation . E x p o r t c o p p e r p rice s h a v e w e a k en ed su b sta n tia lly and on J u n e 20 q u o ta tio n s w e re 7.40-7.50 cen ts p e r p o u n d c.i.f. E u ro p e a n base p orts. L e a d and z in c p rice s im p ro v e d s lig h tly in th e p e rio d u n d e r re v ie w , b u t s p o t fo r e ig n silv e r d e clin e d fr o m 76 ce n ts p er o u n ce , N e w Y o r k , on M a y 20 to 72 cen ts p er o u n ce on J u ne 20. T h e C re d it S itu a tio n RETAIL FOOD PRICES-Index Numbers (1926=100) Index for United States is that of Bureau of Labor Statistics. Index for Twelfth District is an average of Bureau of Labor Statistics indexes for six district population centers, weighted according to population in 1930. N o n -fe r r o u s m eta ls m a rk ets e x p e rie n ce d an u p w a rd p rice tren d in th e la st p art o f M a y w h ich w a s o ffs e t to a c o n s id e r a b le e x ten t b y a d e clin e d u r in g th e first tw o w e e k s in June. A l th o u g h th e p rice o f 9 cen ts p er p o u n d fo r c o p p er w h ic h p re v a ile d u n d er th e c o d e ap p ears to F u rth e r r e d u ctio n s in in te re st rates ch a rg ed b y c ity ban k s in the T w e lft h D is tr ic t w e re m a d e b e tw e e n M a y 15 and Ju ne 19, n o tw ith sta n d in g a m o d e ra te d e cre a se in b a n k in g re serves. A d d itio n a l d ecrea ses in rates ch a rg ed b y se cu rity b ro k e rs to th eir c u sto m e rs w e re a lso re p o rte d d u rin g th at p e rio d . M o s t ban k s in San F r a n c is c o and L o s A n g e le s a n n o u n ced that, e ffe c tiv e J u ly 1, in terest p aid u p o n sa v in g s d e p o sits w o u ld be re d u ce d to a 2 p e rc e n t rate, th e sam e as the rate s ch e d u le d to be in e ffe ct a fte r J u ly 1 in o th e r cities o f th e d istrict e x c e p t P o rtla n d , w h e re it w ill b e p ercen t. T h e d ecrea se in b a n k in g re se rv e s w h ich a c c o m p a n ie d th e re d u ctio n in in te re st rates w a s la r g e ly the resu lt o f v o lu n ta r y a ctio n b y ban k s in u s in g p art o f th e ir e x ce ss fu n d s, ra th er than o f a ctio n b y d e p o s ito rs . T h e r e w a s a fa irly la rg e n et m o v e m e n t o f fu n d s o u t o f this d is trict in settlem en t o f c o m m e r c ia l and fin an cial p a y m e n ts, b u t th a t has b e e n c u s to m a r y in re- iy2 FEDERAL RESERVE BANK OF SAN FRANCISCO (in millions of dollars) SOURGES AND USES OF BANKING RESERVES Twelfth District Changes in millions of dollars during the weeks indicated -ConditionJune 19 June 12 May 15 1935 1935 1935 SOURCES OF FUNDS Week Ending 1935— April 10. . . . . April 1 7 ... April 24. . . May 1. . . . . May 8. , . May 15. . . May 22. . . . . May 29. . . . . June 5. . . June 12. . . . . June 1 9 ... Reserve Bank Credit + 1.2 + 1.7 — 3.1 + 1.6 — 2.8 + 3.6 — 8.0 + 5.2 + .5 + .1 + 3.7 Commercial Treasury Operations Operations + 6.1 + 8.3 + 2.1 + 9.9 — 14.0 + 15.8 + 7.2 — 3.6 — 6.4 + 15.7 + 3.3 + 8.6 + 9.4 — 12.9 — 7.5 — 1.2 — 16.0 + 7.7 — 12.0 + 8.6 — 19.3 + 5.6 Total Supply + 15.6 + 13.7 — 1.3 + 5.2 + 6.5 + 15.5 — 11.5 — 3.5 — 7.8 — 3.3 — 10.0 USES OF FUNDS Demand Week for Ending Currency 1935— April 10. . . . , — .2 + 4.0 April 17. April 24. . . May 1. . . . . + 12.0 May 8. . . . . + 4 . 4 May 15 . , . — 4.0 May 22. . . . . — 2.2 — 4.3 May 29. . . June 5. . . — 2.8 June 12. . . .3 June 19. . . .. + Member Bank Reserve Deposits + 16.7 + 9.8 — 5.3 — 7.0 + 4.0 + 18.9 — 13.4 + 4.4 — 9.6 — 4.9 — 5.2 Other F.R.B. Accounts — .9 — .1 + 3.4 + -2 — 1.9 + .6 + 4.1 — 3.6 + 1.4 + 4.4 — 5.1 Total Demand + 15.6 + 13.7 — 1.3 + 5.2 + 6.5 + 15.5 — 11.5 — 3.5 — 7.8 — 3.3 — 10.0 Total Bills and Securities.......... Bills Discounted .................... Bills Bought .......................... United States Securities........ Total Reserves ............................ Total Deposits ............................ Federal Reserve Notes in Circulation .................................. Ratio of Total Reserves to De posit and Federal Reserve Note Liabilities Combined... June 20 1934 167 201 201 201 199 315 283 Ì 99 327 292 199 349 311 166 307 253 218 216 221 204 62.9 64.3 65.5 1 67.1 REPORTING MEMBER BANKS—Twelfth District (in millions of dollars) ---- Cond ition-----June 19 June 12 May 15 June 20 1935 1934 1935 1935 1,932 1,827 1,924 Loans and Investments— Total.. 1,941 Loans— T otal............................ 866 866 868 876 221 177 177 178 On Securities ...................... 691 655 688 689 All O ther.............................. 1,058 1,064 951 Investments— Total ................ 1,075 600 632 638 636 United States Securities.. . 426 439 426 351 Other Securities .................. 139 154 158 180 Reserve with Reserve Bank... 772 776 806 627 Net Demand Deposits................ 962 939 963 958 Time Deposits.............................. 205 199 211 Due from Banks.......................... 158 211 212 211 173 Due to Banks .............................. Borrowings at Reserve Bank... FEDERAL RESERVE AGENT AT SAN FRANCISCO June 1935 cen t years. N o m aterial ch a n g e to o k p la ce in the a m ou n t o f re se rv e b a n k cre d it in use, and a sm all d eclin e in d em a n d fo r c u rr e n c y fu rn ish ed ban ks w ith a d d itio n a l fu n d s. T h e ex p la n a tion o f th e d ecrea se in m e m b e r b a n k reserv e de- 47 p a n ied b y an e x p a n sio n in b an k loan s d u rin g A p r il, M a y , and th e first h a lf o f June. A s is sh o w n in the fo llo w in g ch art, n o la rg e ch a n g e in th e v o lu m e o f real estate o r co m m e r cia l loan s o f T w e lfth D is tr ic t m e m b e r ban k s has taken p la ce sin ce J u ne 1933, w h ile loa n s on secu rities have b een d e c lin in g s lo w ly th r o u g h o u t this p e rio d . A lth o u g h loa n s o f m e m b e r ban ks h ave been c o m p a r a tiv e ly sta b le d u rin g th e past tw o years, in v e stm e n ts h ave in crea sed sh a rp ly. T h is e x p a n sio n in in v e stm e n ts o f ban k s has b een re sp o n sib le fo r a co n s id e ra b le part o f th e sharp rise in ban k d e p o sits , a lth o u g h n et d isb u rseM I L LI ONS OF DOLLARS 1929 1930 1931 1932 1933 1934 1935 INTEREST RATES CHARGED BY SAN FRANCISCO BANKS Weighted averages of mid-month figures. p osits is to be fo u n d in U n ite d S tates T re a su ry op e ra tio n s w h ich , co n tra ry to the usual cir cu m stan ce, co n trib u te d o n ly a s lig h t su m to d is trict b a n k in g reserv es d u rin g th e five w eek s. T h e fa c t th at th e T re a s u ry d isb u rse d o n ly $6,400,000 m o re than w a s c o lle c te d in the T w e lfth D is tr ic t d u rin g this p e rio d reflected u n u su a lly la rg e c o lle c tio n s b eca u se o f the re turn b y ban k s o f a b o u t 12 m illio n d olla rs in p osta l sa v in g s fu n d s, b e ca u se o f d e p o sits b y n a tion a l ban k s o f a b o u t 11 m illio n d olla rs to retire lia b ility fo r c ir cu la tin g n otes, and b e cau se o f su b sta n tia l in co m e ta x c o lle ctio n s . R e d u ctio n s in in terest rates w e re n o t a c c o m CONDITION OF ALL MEMBER BANKS—Twelfth District Figures from June 30,1933 to March 4,1935 are from call reports. June 1935 figures estimated for all member banks on basis of weekly reports from banks in leading cities. m en ts b y the U n ite d States T r e a s u r y and p a y m en ts fo r n e w ly m in ed , im p o rte d , and re cla im e d g o ld h ave a lso en tered d istrict ban ks in th e fo r m o f d ep osits. S U M M A R Y O F N A T IO N A L C O N D IT IO N S Prepared by the Federal Reserve Board T h e re w a s a fu rth e r s lig h t d e clin e in in d u s trial p ro d u c tio n in M a y and fa c t o r y e m p lo y m en t and p a y ro lls a lso s h o w e d a decrease. A c t iv it y in resid en tia l c o n s tr u ctio n c o n tin u e d to be a b o v e th e le v e l o f a y e a r a g o. P r o d u c t io n an d E m p lo y m e n t. V o lu m e o f in d u strial p r o d u c tio n , as m ea su red b y the B o a rd 's se a so n a lly a d ju ste d in d e x , d e clin e d fro m 86 p e rce n t o f th e 1923-1925 a v era g e in A p r il to 85 p e rce n t in M a y , w h ic h w a s the fo u rth c o n s e cu tiv e m o n th o f g ra d u a l d eclin e fr o m th e re ce n t h ig h le v e l o f 90 in Jan uary. A t steel m ills o u tp u t d e clin e d s o m e w h a t in M a y and the first th ree w e e k s o f Ju n e, as is usual at this season . In th e a u to m o b ile in d u stry , w h e re o u tp u t this sp rin g has b een at a lev el su b sta n tia lly h ig h er than in o th e r re ce n t yea rs, p r o d u c tio n s h o w e d a m a rk ed d e clin e in M a y , re fle ctin g in p a rt th e e ffe cts o f a strike. A t co tt o n m ills th ere w a s little ch a n g e in a ctiv ity , w h ile at w o o le n m ills p r o d u c tio n in crea sed fu rth er, co n tr a r y to sea son a l te n d e n cy . P r o d u ctio n o f sh oes d e clin e d sea son a lly . O u tp u t o f co a l, w h ich has flu ctu a ted w id e ly in re ce n t m o n th s re fle ctin g p a rtly d e v e lo p m e n ts in the la b o r situ a tion , s h o w e d a m a rk ed in crea se d u r in g M a y and th e ea rly p a rt o f June. F a c to r y e m p lo y m e n t and p a y ro lls d e clin ed b e tw e e n the m id d le o f A p r il and the m id d le o f M a y . D e cre a s e s in e m p lo y m e n t w e re re p o rte d fo r the a u to m o b ile , ra d io, lu m b er, c lo t h in g, co tto n , silk, and sh oe in d u stries, w h ile at w o o le n m ills e m p lo y m e n t in crea sed and in m a n y o th e r lines little ch a n g e w a s rep orted . V a lu e o f c o n s tr u ctio n co n tra cts a w a rd ed , as re p o rte d b y the F . W . D o d g e C o rp o ra tio n , w as a b o u t the sam e in M a y as in A p ril. R e sid e n tia l w o r k co n tin u e d in e x ce s s o f a y e a r a g o , w h ile th e v o lu m e o f co n tra cts fo r p u b lic p r o je c ts w a s sm a ller than in th e c o r re s p o n d in g m o n th o f 1934. D e p a rtm e n t o f A g r ic u ltu r e estim ates b ased on June 1 re p o rts in d ica te that c o n d itio n s fo r w h ea t, oa ts, b a rle y , rye, h ay, and p astu res w e re at th e te n -y e a r a v e ra g e fo r 1923-1932, in c o n trast w ith co n d itio n s a y e a r a g o, w h ich w e re MONTHLY REVIEW OF BUSINESS CONDITIONS 48 u n u su a lly p o o r as a co n s e q u e n ce o f a p r o lo n g e d d ro u g h t. T h e w in te r w h e a t cr o p th is y ea r is e stim a ted to b e so m e w h a t la rg er than last y e a r and, w ith a co n s id e r a b e in crea se in d ica te d fo r s p rin g w h ea t, p re se n t co n d itio n s, a c c o r d in g to th e D e p a r tm e n t o f A g r ic u ltu r e , s u g g e s t a to ta l PERCENT June 1935 a fter a sh arp d eclin e at th e en d o f M a y and a s u b se q u e n t in crea se, a lso w e re lo w e r in th e m id d le o f Ju ne than at th e b e g in n in g o f M a y . P r ic e s o f c o m m o d itie s o th e r th an fa rm p r o d u cts and fo o d s as a g r o u p a d v a n ce d s lig h tly d u rin g th is p eriod . PERCENT INDUSTRIAL PRODUCTION FACTORY EMPLOYMENT Index of industrial production, adjusted for seasonal varia tion (1923-1925 average=100). Index of factory employment, adjusted for seasonal vari ation (1923-1925 average=100). c ro p o f a b o u t 670,000,000 b u sh els as co m p a re d w ith 496,000,000 b u sh e ls last sea son and a ten y e a r a v e ra g e o f 828,000,000 bu sh els. D o m e s tic sto ck s o f w h e a t h a v e been m a te ria lly re d u ced th is sea son . D is trib u tio n . T o t a l v o lu m e o f fre ig h t-c a r lo a d in g s in cre a se d in M a y b y a b o u t th e usual sea son a l a m ou n t. C oa l sh ip m en ts sh o w e d a B a n k C redit. D u r in g th e five w e e k s e n d in g Ju ne 19 reserv e b a la n ces o f m e m b e r b a n k s in crea sed b y $175,000,000 as a resu lt o f g o ld im p o rts, o ffs e t in p a rt b y an in cre a se in T r e a s u ry cash and d e p o sits w ith th e re se rv e b an k s. E x cess reserves o f m e m b e r ba n k s o n J u ne 12 w ere a b o v e $2,500,000,000 fo r th e first tim e, b u t d e clin e d so m e w h a t in the fo llo w in g w eek . PER CENT MILLIONS OF DOLLARS OTHER C:OMMODITIES /FOODS \ N\ " - 't e w FARMW*“RODUCTS 1 1929 1930 1931 1932 1933 1934 1935 WHOLESALE PRICES VALUE OF CONSTRUCTION CONTRACTS AWARDED Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. (1926=100.) Three-month moving averages of F. W. Dodge data for 37 Eastern states, adjusted for seasonal variation. Latest figures based on data for April and May and estimate for June. m a rk ed in crea se, w h ile lo a d in g s o f m is c e l la n eou s fr e ig h t d eclin e d . D e p a rtm e n t store sales, as m e a su re d b y th e B o a r d ’ s s e a so n a lly a d ju ste d in d e x , in cre a se d fro m 73 p e rce n t o f th e 1923-1925 a v e ra g e in A p r il to 76 p e rce n t in M a y an d w e r e at a p p r o x im a te ly th e sam e le v e l as a y e a r a g o . C o m m o d it y P ric e s. T h e g e n e ra l le v e l o f w h o le s a le p rice s, w h ic h w a s 80.3 p e rce n t o f the 1926 a v e ra g e at th e end o f A p r il and also in th e w e e k e n d in g M a y 25, had d e clin e d to 79.8 p e rce n t b y th e w e e k e n d in g Ju ne 15, a c c o r d in g to th e in d e x o f th e B u rea u o f L a b o r S ta tistics. G rain p rice s d e cre a se d c o n s id e ra b ly d u rin g M a y and th e first h a lf o f June. C o tto n p rices, A t re p o r tin g m e m b e r ba n k s in le a d in g cities th ere w a s an in cre a se o f $540,000,000 in n et d em a n d d e p o sits in th e fo u r w e e k s e n d in g J u n e 12, due in p art to g o ld im p o rts. T im e d e p o sits d e clin e d b y $150,000,000 o f w h ich $70,000,000 rep re se n te d a d e clin e at N e w Y o r k C ity ban k s c o n s e q u e n t u p o n a r u lin g o f the N e w Y o r k C le a rin g H o u s e in M a y p r o h ib itin g th e p a y m e n t o f in te re st o n n e w tim e d e p o sits m a tu rin g in less than six m o n th s. T o t a l loa n s and in v e stm e n ts o f r e p o r tin g b a n k s s h o w e d n o im p o rta n t ch a n g es. S h o rt-te rm o p e n -m a rk e t in te re st rates c o n tin u e d at lo w lev els in M a y and th e first h a lf o f June.
@FedFRASER