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MONTHLY REVIEW OF B U S IN E S S C O N D IT IO N S ISAAC B. N E W TO N , Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. X San Francisco, California, March 20, 1926 No. 3 S U M M A R Y O F N A T IO N A L C O N D IT IO N S Production and trade continued in February at the high level of the preceding month, while the general average of prices declined and was lower in February than at any time since the latter part of 1924. Production. The Federal Reserve Board’s index of production in basic industries, which is adjusted for seasonal variations, indicated a continuation of productive activity during February in about the same volume as in the preceding two months. Mill consumption of cotton and the output of flour, anthracite coal, copper, and newsprint showed increases in February, when allowance is made for usual seasonal changes, and the output of iron and steel and lumber remained practically un changed. Activity in the woolen industry and the production of cement declined. Automo bile production was in considerably greater volume in February than in January, and was larger than a year ago, although smaller than in the corresponding month of 1924. EmployPER CENT ment and earnings of factory workers increased after the seasonal recession of January and were at practically the same levels in February as during the latter part of 1925. The volume of building contracts awarded declined both in January and in February, but remained larger than in the corresponding months of last year. Reports by farmers to the Department of A g riculture of intentions to plant in 1926 indicate that the acreage of spring wheat and tobacco will be slightly smaller, the acreage of corn will be about the same, and that of oats, barley, hay, and potatoes larger than in 1925. Trade. Wholesale trade in February was in about the same volume as a year ago. A smaller volume of sales was reported for gro ceries, dry goods, and hardware, while sales of meats, shoes, and drugs were larger. Inven tories of wholesale firms dealing in groceries, dry goods, shoes, and hardware were smaller at the end of February than a year ago. Trade at department stores and at mail-order houses PER CENT 1922 1923 1924 1925 1926 P R O D U C T I O N I N B A S IC I N D U S T R IE S W H O L E S A L E P R IC E S Index of 22 basic commodities corrected for seasonal variation (1919 = 100). Latest figure, February, 120. Index of U . S. Bureau of Labor Statistics (1913== 100, base adopted by Bureau). Latest figure, February, 155. T h o s e d e s ir in g t h i s r e v ie w s e n t th e m r e g u la r ly w ill r e c e iv e it w it h o u t c h a r g e u p o n a p p lic a tio n . 18 March, 1926 M O N T H L Y REVIEW OF BUSINESS CONDITIONS was larger than in February of last year, and department store stocks were about 5 per cent greater on March 1st than on the correspond ing date of 1925. Freight car loadings contin ued at about the same daily rate in February as in the preceding two months. Shipments of mer chandise in less-than-carload-lots and of mis cellaneous commodities were particularly large. Bank Credit. A t member banks in leading cities, demand for loans, chiefly for commer cial purposes, showed an increase, partly sea sonal in character, between the middle of Feb ruary and the middle of March, and on March 17th the total volume of these loans was close to the high point reached last autumn. A fur ther decline of loans on securities which ac- PER CENT 150 A%Pfíf ROLLS / / 100 'X EMPLOYMENT 50 1922 1923 1924 1925 1926 FA G TO R Y E M P LO YM E N T A N D PAYROLLS M E M B E R B A N K C R E D IT Federal Reserve Board's indexes of factory employment and payrolls (1919 = 100). Latest figures, February, employment, 97.0; payrolls, 111.5. Monthly averages of weekly figures for banks in 101 leading cities. Latest figures are averages for first three weekly report dates in March. Prices. The general level of wholesale prices, as measured by the Bureau of Labor Satistics’ index, after remaining unchanged for two months, declined in February to a point slightly below the low figure of 1925, reported for last May. The greater part of the decline since last autumn has been in prices of agricul tural commodities. In February, prices of all major groups of commodities, except fuels, de clined, and particularly large reductions oc curred in the prices of grains, cotton, wool, silk, and rubber. Price advances in February were shown for petroleum, coke, and paper. During the first three weeks of March, prices of grains, cotton, wool, and silk continued to decline, and recessions were also reported in the prices of sugar and hardwood lumber. companied the sharp recession in securities prices in March, carried the total to a point nearly $430,000,000 below that reached at the end of the year. Following a growth during February in the volume of reserve bank credit outstanding, there was a sharp decline early in March to about the same level as a year ago. Factors contributing to the decline have been continued imports of gold and some reduction in member bank reserve requirements, as well as the temporary abundance of funds resulting from the excess of Treasury disbursements over receipts around March 15th. Open market rates on prime commercial paper after a slight decline in February, ad vanced in March to 4 j4 -4 ^ per cent, the level which had prevailed since last October. 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 S t a t is t ic a l S u m m a r y — Feb., jan., 1926 1926 F eb.. 1925 Jan., 1925 Bank Debits— Index N um bersf— 20 cities........... 158 154°138° 135° Building Permits— 20 cities ........................................ $26,736,564$29,165,741 $32,649,155 $31,464,205 Retail Sales— 32 stores— Index N u m b ersf........... 156 148150 147 Savings Deposits— 69 b an k s*§.................................. $1,194,572 $1,150,383° $1,101,976° $1,059,099° Lumber Production— 4 associations— board feet* 557,605 491,625524,379 554,303° Flour Production— 16 companies— b a rrels.......... 325,161 396,709 414,985 489,357 Reporting Member Bank Loans and Discounts||* $1,188,573 $1,180,645 $1,093,957 $1,071,730 Reporting Member Bank Deposits||*..................... $1,604,612 $1,634,715 $1,525,973 $1,514,817 Federal Reserve Bank D iscounts^*........................ $49,814 $22,555$23,689 $17,747 F eb., 1926$? compared with Feb.. Jan., 1926 1925 14.5 -18.1 4.0 8.4 6.3 -21.6 8.6 5.2 110.3 2.6 — 8.3 5.4 3.8 13.4 — 18.0 0.7 — 1.8 120.9 * l n thousands. tA d ju sted for seasonal variations— 1919 m onthly a v e ra g e = 1 0 0 . JDaily average production. § N o t comparable with figures published in previous reviews. ||March 10 and February 10, 1926, M arch 11 and February 11, 1925. fl M arch 17 and February 17, 1926, M arch 18 and February 18, 1925. #P ercen ta ge increase or decrease (— ) . °R evised. M arch, 1926 Agricultural Situation Seasonal rainfall in most sections of the dis trict and unusually mild temperatures during February and the first weeks of March favored early spring agricultural operations, and stim ulated growth of fall sown grain crops and of livestock forage. Although seasonal rainfall has generally been nearly normal in amount, many important agricultural areas of the district, particularly in California and Washington, need additional moisture to insure satisfactory growth of crops during the forthcoming grow ing season. The livestock industry has been particularly benefited by the comparatively mild weather of recent months in that general use of open ranges, with consequent saving of hay and other feeds, has been possible during much of the past winter. Livestock generally have been maintained in satisfactory condition. C O N D IT IO N OF R ANGES A N D LIVESTOCK (Percent of Estimated Normal) Ranges — > <---- -Cattle — ^ Mar. 1, Feb. 1,Mar. 1, F eb.l, 1926 1925 19261926 1925 1926 t— Arizona .......... 85 California . . . 90 Idaho ............... 96 O regon ........... 98 Nevada ........... 100 U tah ................ 96 W ashin gton . . 9 3 S o u rce: 19 FEDERAL RESERVE AG EN T AT SAN FRANCISCO 57 92 87 82 67 69 71 84 88 8392 97 98 95 98 100 105 97 104 87 92 69 89 91 85 69 71 77 t— Sheep — \ Mar. 1, Feb.l, 1926 1925 1926 88 90 99 99 104 103 92 95 93 98 99 103 103 96 87 91 98 92 80 83 87 95 91 98 99 102 101 96 U nited States D epartm ent of Agriculture. Spring lambing has been practically com pleted in principal sheep-raising sections of the district. Increase in flocks and growth of young lambs are reported to have been generally sat isfactory. Market demand for choice lambs is active, and shipments from California to east ern markets have begun. Marketing of the district’s chief crops has, for the most part, proceeded in an orderly man ner during the present crop year. The propor tion of total grain crops remaining on farms in this district on March 1, 1926, was greater than on March 1, 1925, a result partially of a smaller export movement of wheat from the Pacific Northwest and partially of the greater produc tion of wheat in 1925 than in 1924. Figures follow : STOCKS ON FAR M S—W H E A T A N D B AR LEY Per Cent of Crop Shipped Out or To Be Shipped Out of County e -..... - March 1,----------- v r— W! here G rown — \ Five-Year Five1925 Average! '-March 1,—» Year 1926 Wheat 1925 Average! (bu.)* (bu.)* 1926 (bu.)* 802 (7 .0 ) 3,906 (15.0) 2,079 O regon ............ (11.0) 3,316 W ashington . . (9 .0 ) Four States . . 10,103 (10.8) United States.. 99,279 (14.8) California 226 (4 .0 ) 1,927 (12.0) 1,322 (9 .0 ) 1,847 (7 .0 ) 5,322 (8 .5 ) 112,042 (13.0) 948 (8 .3 ) 4,290 (17.4) 2,328 (11.1) 4,560 (10.6) 12,126 (12.1) 151,428 (18.9) 1,189 (8 .0 ) 476 (13.0) 157 (11 .0 ) 158 (10.0) 1,980 (9 .2 ) 40,064 (22 .5 ) 2,876 (10.0) 680 (18.1) 441 (18.3) 588 (22.1) 4,585 (12.2) 46,997 (25.2) 69 59 62 68 62 63 60 60 65 65 70 73 68.6 73.0 64.9 Barley California 3,546 (11.0) 1,364 (25.0) Oregon ............ 634 (20.0) W ashin gton . . 402 (13.0) Four States . . 5,946 (13.5) United States.. 53,466 (24.5) 64 64 68 33 42 31 28 23 19 28 25 27 35.5 37.0 36.1 Figures in parentheses indicate percentage of crop of preceding year remaining on farms on M arch 1st. *000 omitted. fl9 2 1 1925. Unsold holdings of wool in this district are reported to be considerably larger than at this time in 1925. During the early part of the pres ent marketing season some growers held their clips for higher prices, but as the season pro gressed the market became less active, and dur ing the past three months the trend of prices has been downward. Industrial Activity Industrial activity and volume of employ ment in this district continued at relatively high seasonal levels during February, although some evidence of a slackening in building ac tivity was contained in the month's record of building permits issued. Available statistical and non-statistical data indicated that activity in general was at slightly higher levels than in February, 1925. (A ) Agricultural Marketing Activity— f-------- Exports--------- \ t------- Carlot Shipments--------. Wheat* Barley* Apples* Portland and San12th Orangesf Lemonsf Puget Sound Francisco Dist. Calif. Calif. Monthly (cars) 3,481 3,380 3,431 (cars) 558 664 723 r---------------------- Crop Year — 11,387 10,161 44,589 14,580 (11 .3 ) (22.2) (81 .9 ) (28.6) T o February 28, 1925.................................. 16,172 6,869 35,381 13,454 (2 4 .1 ) Five-year average to February 28. . . . 19,037 9,380 43,122$ 12,790 _____ (1919-1923) (1 6 .5 ) (23.3) (85 .1 ) (27.0) a , 2,313 (15.4) 2,547 February, 1926................................................ January, 1926................................................ February— 5-year average ...................... (1919-1923) Cumulative T o February 28, 1926.................................. (1000 bu.) 1,272 2,219 1,214 (1000 bu.) 168 529 443 (cars) 3,059 2,823 3,197$ 2,201 (19.4) Livestock Receipts at Eight Markets in 12th District Cattle and Calves Hogs Sheep 95,348 121,342 82,794|J 175,059 225,562 192,538|| ColdStorageHoldings^ 12th District Butter Eggs 149,749 155,741 172,751|| lbs.) 840 1,743 45011 cases) 12 11 511 ■ -------------Calendar Y ear------------- \ 216,690 400,621 305,490 226,417 567,850 325,755 (30.2) (82.3) (28.0) (22.1) 187,918¡| 429,554|| 361,36011 Figures in parentheses indicate percentage of new crop only. *Season begins July 1st. tSeason begins November 1st. average (1923-1926). §A t end of month. H1921-1925. ÏÏ1922-1926. (1000 (1000 $Four-year 20 M O N T H L Y REVIEW OF BUSINESS CONDITIONS Value of building permits issued in 20 prin cipal cities of the district declined 8.3 per cent during February, 1926, as compared with Jan uary, 1926, and was 18.1 per cent less than in February, 1925. The usual seasonal change from January to February is estimated to be an increase of approximately 17 per cent. Dis trict percentage changes appear below, and de tailed figures by cities are presented in Table “ C.” B U I L D I N G P E R M IT S I N 20 C IT IE S Per Cent Increase or Decrease (— ) Months in 1926 compared Month in 1926 with same Months in compared with f----------------------- 1925 ----------------------- % preceding Monthly Year-to-date Month N o. Value N o. Value N o. Value February.. — 1 1 .2 % — 1 8 .1 % — 1 2 .6 % — 1 2 .8 % — 4 .4 % — 8 .3 % January. . . — 1 3 .8 % — 7 .3 % 3 .5 % — 2 1 .3 % Lumber production, as reported by four asso ciations whose members operate in this district, was larger during February than during Jan uary, 1926, and February, 1925, by 13.4 per cent and 6.3 per cent, respectively. The cut was 9.2 per cent less, however, than the amount of new orders received during the month. Volume of such orders was slightly smaller than in Jan uary, 1926, but was 14.6 per cent larger than in February, 1925. Orders received during Feb ruary exceeded shipments, which in turn ex ceeded production, so that stocks of lumber held by mills decreased, and unfilled orders in creased. LU M B E R A C T IV IT Y * Production ........................... Shipments ............................ Orders ................................... Unfilled Orders ................ N o . of M ills R eporting. . Feb., 1926 Jan., 1926 Feb., 1925 Jan., 1925 (board feet) (board feet) (board feet) (board feet) 557,605 491,625 524,379 554,303t 598,385 604,924 556,735 623,259t 614,234 635,691 535,760 573,619f 502,278 476,856 432,498 462,630 177 179180 183t *A s reported by four associations, 000 omitted except in case of number of mills reporting. fR evised. (B) Employment— — Oregon------------\ f-------- California---------> r N o. of N o. of -— Employees —' N o. N o . /— Em ployees—'' Feb., Jan., of of Feb., Jan., 1926 1926 Firms 1926 1926 Firms 17,174 16,536 100 696 126.525 127,087 (3.9) ( -0 .4 ) Industries A ll Industries . Stone, Clay and Glass P roducts. 44 7,032 (— 3.9) 7,321 5 224 (7.2) 209 Lum ber and W o o d M anufactures . . 110 23,070 (0.0) 2,580 (0 .4 ) 23,070 45 5 13,950 (3.5) 1,078 (23.9) 13,479 2,570 870 ................... 17 Clothing, M illinery and Laundering. 58 7,607 (2 .4 ) 7,432 7 462 (0 .4 ) 460 Food, Beverages and T o b a c c o ... 149 22,108 (— 0.2) 22,163 29 950 (— 9.8) 1,053 3,372 (0 .7 ) 302 58,835 (— 0.5) 1,921 12 (— 6.8) 3,350 Textiles W ater, Ligh t and Power ................. O ther Industries* Miscellaneous ... 4 2,062 9 510 (9.7) 465 *Includes the follow ing indu stries: metals, machinery and con veyances ; leather and rubber g o o d s ; chemicals, oils and p ain ts; printing and paper goods. Figures in parentheses represent percentage changes from January. Figures of national production of non-ferrous metals, a considerable proportion of which is produced in the Twelfth Federal Reserve Dis trict, follow : N O N -F E R R O U S M E T A L S -N a tio n a l Production Feb.. 1926 Copper (lb s.) (m ine pro duction) .................................... 135,586,000 Silver (o z .) (com m ercial bars) ........................................ 4,970,000 Zinc (tons) (s la b )................. 53,237 Jan., 1926 Feb.. 1925 142,628,000 138,772,000 5,401,000 56,389 5,077,000 46,811 Reported daily average production of petro leum in California has declined during each of the past six months, but, at 612,999 barrels in February, 1926, was still 1.7 per cent greater than in February, 1925. Indicated consumption continued less than production, and stored stocks again reached new high levels on Febru ary 28, 1926. Figures follow: P E T R O L E U M — California 1926. 1926. 1925. 1923* Indicated Average Stored <— N ew W ells —> Average Daily Daily Stocks at Daily Consumption End of Number Produc Production (Shipments) tion Month Opened (barrels) (barrels) (barrels) (barrels) . . 612,999 586,888 128,106,096 98 26,969 . . 615,147 609,338 127,374,984 33,548 73 . . 602,494 558,801 101,344,730 65 28,170 . . 858,750 93 139,960 t t *Peak of production. tCom parable figures not available. Sou rce: Am erican Petroleum Institute. The decline in flour milling activity reported by 16 large milling companies of the district during January continued during February, 1926. Output during the latter month was 18.0 per cent smaller than in January, 1926, 21.6 per cent smaller than in February, 1925, and 33.6 per cent smaller than the five-year average for February. Millers’ stocks of flour decreased during the month, and on March 1st were ap proximately 18 per cent below the figures both for March 1, 1925, and the five-year average for that date. Reported holdings of wheat at the mills declined 27.6 per cent during February and on March 1st were approximately 19 per (C) Building Permits L o n g Beach L os A n geles .......... .......... . . 59,119 M arch, 1926 Sacramento ............ Salt Lake C i t y . . . . San D iego ............... San Francisco . . . D istrict ................ . February, 1926 N o. Value 227 $ 476,546 48 21,273 91 88,327 404 815,675 2,783 8,542,370 909 3,062,466 11 19,150 509,666 223 91 152,332 1,009 2,502,190 14 75,050 199 443,673 54 187,690 574 1,293,205 753 4,711,886 107 303,895 901 2,346,300 159 204,555 93 219,175 248 761,140 8,898 $26,736,564 February, 1925 N o. Value 250 $ 669,639 63 58,695 96 201,041 345 1,520,892 3,336 10,884,244 978 3,540,141 20 54,850 194 509,656 84 409,351 1,236 3,504,680 24 50,325 240 1,966,158 105 472,700 608 1,028,360 846 3,871,487 103 465,585 850 2,052,105 242 344,851 110 306,750 291 737,645 10,021 $32,649,155 M arch, 1926 FEDERAL RESERVE AGENT AT SAN FRANCISCO cent less than the five-year average for that Five-Year date. F L O U R M IL L IN G * Average Feb., 1926 325,161 Output ( b b l s .) . Stocksf Flour (b b ls.) . . . 417,548 W h ea t ( b u . ) . . . . 2,295,563 *A s reported by 16 companies, low ing month. Jan., 1926 396,709 446,027 3,169,868 Feb., 1925 414,985 Feb., 1921-1925 489,363 510,605 2,823,484 504,282 2,835,859 f A s of the first day of the fol- General Business and Trade Continuance of general business activity at the relatively high levels of recent months was noted in this district during February, 1926. Trade activity increased more than seasonally during the month, and was considerably greater than in February, 1925. Debits to individual accounts (bank debits) at banks in 20 principal clearing house centers of this district, the movements of which reflect changes in the business situation, declined slightly during February, 1926, but the decrease was less than the usual decrease resulting from the relatively small number of business days in that month. This bank’s revised index of 21 bank debits, adjusted for seasonal variations, advanced from 154 in January, 1926, to 158 in February, 1926 (1919 average = 100). In Feb ruary, 1925, it stood at 138. Value of sales at retail, as shown by reports of 68 retail stores in principal cities of the dis trict, was 3.1 per cent larger during February, 1926, than during February, 1925, and 9.8 per cent less than during January, 1926. This bank’s index of department store sales, cor rected for seasonal variations, advanced from INDEX NUM BERS INDEX NUMBERS D E P A R T M E N T S T O R E S A L E S —T W E L F T H D IS T R I C T Index of 32 Stores in 7 cities (1919 monthly average=100). Latest figures, February, with adjustment, 156; without adjustment, 119. B A N K D E B I T S - T W E L F T H D IS T R IC T Index for 20 principal cities, Phoenix, Arizona, not included,(daily averages, 1919 average=100). Latest figures, February, with ______ adjustment, 158; without adjustment, 175. *B ased upon average m onth to month increase during the years 1919 to 1925 inclusive. (JO) B a n k D e b i t s *— February, t— Two Months — > February, 1925 1926 1925 1926 16,391 $ 38,889 $ 37,150 17,175 $ Berkeley ................ .$ 9,259 26,672 23,165 11,138 Boise ...................... 56,690 70,753 31,284 25,368 Fresno ................... 106,790 96,465 51,011 42,133 L o n g Beach ......... 745,252 . 842,902 1,727,795 1,563,837 L o s Angeles -----262,152 115,190 329,877 162,428 Oakland ................. . 22,437 52,477 50,705 19,556 O gden ..................... 78,137 72,802 36,932 34,425 Pasadena ............... 22,135 Phoenix ................. 22,745 50,335 49,798 157,839 134,296 287,869 Portland ................, . 325,485 7,212 6,184 16,591 14,239 Reno ........................ 35,942 66,447 Sacramento .......... 31,127 80,831 59,916 55,994 139,764 130,562 Salt Lake C ity. . 58,775 46,572 San D iego ............ 124,667 99,476 938,395 San Francisco . . .. 1,161,763 2,215,123 1,857,623 20,432 49,490 48,322 171,188 181,529 Seattle ................... . 388,008 367,594 48,028 42,840 Spokane ................. 104,494 96,836 Stockton ................ 23,387 21,823 54,140 49,744 Tacom a .................. 39,447 38,672 86,328 83,385 Y akim a ................ 10,511 9,392 23,560 22,086 D istrict ........... . . $2,996,080 $2,554,320 $6,075,822 $5,351,331 *000 omitted. 148 in January, 1926 (1919 monthly average = 100) to 156 in February, 1926. The index stood at 150 in February, 1925. The index rec ord, which is based on the total value of sales of 32 department stores, is presented in the table below. Stocks of goods held by reporting stores increased 4.3 per cent (in value) during the month ending February 28, 1926, and on that date were 5.2 per cent larger (in value) than on February 28, 1925. The indicated rate of stock turnover, 2.5 times per year in Febru ary, 1926, compares with an indicated rate of turnover of 2.8 and 2.6 times per year in Janu ary, 1926, and February, 1925, respectively. D E P A R T M E N T S T O R E S A L E S — Index Numbers (1919 Monthly Average = 100) Without Seasonal Adjustment San Salt Los OakFran Lake Spo Angeles land cisco City Seattle kane Feb., 1 9 2 6 .. 180 112 82 108 73 76 Jan., 1926. . 210 124 113 86 75 70 Feb., 1 9 2 5 .. 173 110 104 80 73 73 With Seasonal Adjustment Feb., 1 9 2 6 .. 223 149 142 114 113 110 Jan., 1 9 2 6 .. 221 145 128 104 99 97 Feb., 1 9 2 5 .. 213 146 136 112 114 106 D is trict 119 130 115 156 148 150 Value of sales at wholesale, as reported by 166 firms in 11 lines of business, was approxi mately 4.6 per cent less during February, 1926, than during January, 1926, but was 1.6 per cent greater than during February, 1925. Five of 10 reporting lines for which segregated data are available showed increases over the year pe- 22 riod. The United States Bureau of Labor Sta tistics’ index of wholesale prices (1913 = 100) stood at 155 during February, 1926, compared with 161 during February, 1925. W H OLESALE TRADE Percentage increase or decrease (— ) /------------in Value of Sales-----------Feb., 1926 F e b .,1926 Jan.,1926 compared compared compared N o. of with with with Firms Feb., 1925 Jan., 1926 Jan., 1925 Agricultural Im plem ents. — 3.8 3.9 — 2.3 Autom obile Supplies . . . . 13 — 14.0 27.9 4.2 A utom obile T i r e s f ............. 18 7.4 —12.2 D rugs ....................................... 7 5.0 — 4.7 4.4 — 6.4 15 D ry Goods ............................ — 3.2 Electrical Supplies .......... 9 — 5.7 4.1 7.1 2.8 6.8 Furniture ............................... 16 — 5.9 Groceries ................................ 21 — 9.5 1.3 9.1 Hardware .............................. 18 — 1.3 0.1 8.2 Shoes ........................................ 11 7.9 5.2 Stationery ............................. 23 —12.1 7.9 — 0.5 *Tem porarily not available. tThese figures are probably in fluenced by the discontinuance by certain of the larger com panies of “ spring dating” sales, or the practice of advancing credit on sales made in autumn months until March, April, and M ay of the following year. On February 28, 1926, savings deposits at 69 banks in seven principal cities of the district were 3.8 per cent larger in amount than on January 31, 1926, and 8.4 per cent larger than on February 28, 1925. The increase of 3.8 per cent during the month, chiefly the result of in creases in deposits at banks in Los Angeles and San Francisco, was in accord with previous ex perience, which has indicated that in each year a large, but not always permanent, growth of savings deposits occurs in February. S A V I N G S D E P O S IT S Number Feb. of 28, Banks 1926* . 13 $415,938 Los Angeles O akland! . . , . . 101,143 7 P ortland! . ... . 7 54,130 Salt Lake City 8 32,231 493,000 San Francisco. 14 78,596 Seattle ........... , . 14 19,534 Spokane .. 6 Total§ March, 1926 M O N T H L Y REVIEW OF BUSINESS CONDITIONS Jan. 31, 1926* $393,515 99,651 54,630 31,177 473,255° 78,616 19,539 Feb. 28,1926f compared with Feb. Feb., Jan. 28, 28, 31, 1925* 1925 1926 $380,267° 9.4 5.7 94,914° 6.6 1.5 52,552° 3.0 — 0.9 29,941 7.6 3.4 452,435° 9.0 4.2 72,085 9.0 — 0.03 19,782 -— 1.3 — 0.03 . . 69 $1,194,572 $1,150,383°$ 1,10 1,9 76° 8.4 3.8 *000 omitted. fPercentage increase or decrease (— ),. ^Includes one bank in Berkeley which was formerly a branch of an Oakland bank. §N o t comparable with figures published in previous Reviews. ° Revised. Prices The general price level declined slightly dur ing February, continuing a movement which has been in progress since August, 1925. The United States Bureau of Labor Statistics’ index of wholesale prices stood at 155.0 (1913 = 100) in February, 1926, compared with 156.0 in Jan uary, 1926, 161.0 in February, 1925, and 155.0 in May, 1925, the low point for that year. The index for the sub-group non-agricultural com modities remained practically unchanged dur ing February, as did the United States Depart ment of Agriculture’s farm price index. The ratio1 between these two indexes, an indication of the purchasing power of farm products, con tinued at 87 where it has stood for the past four months. In February, 1925, this ratio was 87, and in August, 1925, it was 93, the highest point reached since June, 1920. W heat prices declined slightly during Feb ruary. The weekly a v era ^ price of the May contract for new wheat ra red from $1.63 to $1.66% per bushel at Chici o on March 12, 1926, compared with $1.73% tc *>1.76 per bushel on February 5, 1926, and $ 1 .8 t '2 to $1.84 on March 12, 1925. The general level of livesto l prices at im portant markets of this distrir and at Chicago has changed little during rec .t weeks. It was lower than in February and .he first weeks of March, 1925. L IV E S T O C K P R IC E S A T C H I C A G O (Weekly average per 100 pounds) W eek Ending M arch 6, 1926............... February 6, 1926. . . . M arch 7, 1925............... February 7, 1 9 2 5 . . . . Beef Cattle . $ 9.85 9.65 . 10.10 9.25 Lambs $13.60 14.50 17.05 18.20 Hogs $12.45 12.80 13.00 10.60 Sheep $8.10 9.00 9.00 8.75 Prices for spot middling uplands cotton at New Orleans for the week ending March 5, 1926, ranged from 18.14 to 18.83 cents per pound, a slight decline from quotations for the week ending February 5, 1926 (20.02 to 20.34 cents per pound). One year ago the quotation was 25.30 to 26.00 cents per pound. The aver age of 98 wool quotations on the Boston mar ket stood at 76.02 cents per pound on March 5, 1926, a slight decline from the average of 77.87 cents reported for February 5, 1926. On March 5, 1925, the average was 101.22 cents per pound. 1A ratio of 100 would indicate that a given quantity of farm products could be exchanged for the same quantity of nonagricultural products as during the pre-war base period of the two indexes. (E) Commodity Prices — Commodity W holesale Prices (U . S. B ureau of L abor) 1 9 1 3 = 1 0 0 ...................................... Purchasing Power of Farm Products ( U . S. Departm ent of A griculture)* W heat ............................. Chicago contract price for M ay w heat........................... Cotton ............................. M iddling Uplands— W eek ly range of spot quota- bu. March 5,1926 155.0 87 $1.57-1.61^1 lb. lb. 18.14-18.830 5.250 20 .0 2 -2 0 .3 4 0 5.3 5 0 t One Year Ago 161.0 87 $ 1 . 8 0 ^ - 1 .9 6 ^ 25 .3 0 -2 6 .0 0 0 6.250 \ 1.80 1.75 2.75 .08 ¿4-.09J4 . 0 9 - .0 9 ^ 13.8220 13.9990 14.4630 9.1540 9.2550 9.4280 66.7730 67.7950 68.4720 7.7590 8.3040 7.4800 31.32 (S o ftw31.44 o o d ).. W eek ly Ind ex United S ta te31.65 s i.................................. *Ratio of farm prices (August, 1909-July, 1914=100) to wholesale prices of non-agricultural commodities (1910 -1 9 1 4 = 1 00 ). tFebruary 17, 1926. $As published by “ The Lumber Manufacturer and Dealer.” o box lb. lb. lb. oz. lb. Lum ber One Month Ago 156.0 87 $ 1 .7 3 ^ - 1 .7 6 o ................. W inesaps— M edium to large extra fancy f. o. b. Apples Pacific N orthw est .............................................................. Prunes ............................ Size 4 0 /5 0 in 25-lb. boxes f. o. b. California................ Copper ............................ Electrolytic monthly average at N ew Y o r k .................. Lead .................................M onthly average at N ew Y o r k .......................................... Silver ...............................M onthly average at N ew Y o r k .......................................... Unit M arch, 1926 23 FEDERAL RESERVE AG EN T AT SAN FRANCISCO The price of refined beet sugar at San Fran cisco declined slightly during February, and on March 1, 1926, at $5.25 per 100 pounds, was 10 cents below the price quoted on February 17, 1926 ($5.35). On March 2, 1925, the price was $6.25 per 100 pounds. The monthly average price of copper was 1.3 per cent higher during February, 1926, than during January, 1926, but 3.2 per cent lower than in February, 1925. Average price of lead during February was 1.1 per cent below that of January, 1926, and 2.9 per cent lower than the average for February, 1925. Zinc prices showed an average decline of 6.6 per cent during Feb ruary, but showed an increase of 3.7 per cent over February, 1925. A national index2 of lumber prices, published by “The Lumber Manufacturer and Dealer,” remained practically unchanged at 31.44 during February, 1926. Slight price declines, both as compared with a month ago and a year ago, were reported for certain kinds and grades of lumber at Pacific Northwestern producing centers during February, 1926. decreased $51,000,000 or 6.4 per cent, a seasonal fluctuation related to the filing of income tax returns as of March 15th of each year. Total loans of reporting member banks stood at $1,189,000,000 on March 10th, an increase of $8,000,000 or 0.7 per cent during the past month, but were still $24,000,000 or 2.0 per cent lower than the high mark of December 9, 1925. R E P O R T IN G M E M B E R B A N K S — Twelfth District (in millions of dollars, percentage changes in parentheses.) ------- — Changes from-------------* Condition One Year March 10, One Month Ago 1926 Ago Total Loans ........................, . 1,189 Commercial Loans .........., . 905 Loans on Securities.......... . 284 462 Investm ents ........................ . Total Loans and Invest. 1,650 N et Dem and D eposits. . . . 752 Borrowings from Federal Reserve Bank ................ 30 + 8 ( — 4 ( + 12 ( — 5 ( 0.7) 0.4) 4.2) 1.2) — 5 ( 0.5) + 39 ( 4.5) + 56 (24.5) + 41 ( 9.7) + 2 ( — 51 ( 0.1) 6.4) + 135 ( 8.9) — 50 ( 6.2) + 16 (116.3) + 15 (94.7) MILLIONS OF DOLLARS Banking and Credit Situation Banking and credit statistics for February reflect moderately active business conditions in the Twelfth Federal Reserve District. MILLIONS OF D O LLA RS R E S E R V E B A N K C R E D I T — T W E L F T H D IS T R IC T Figures for Federal Reserve Bank of San Francisco, as of last W ednes day of each month. Latest figures, February 24. M E M B E R B A N K C R E D I T — T W E L F T H D IS T R I C T Figures for 66 member banks in leading cities, as of last Wednesday of each month. Latest figures, February 24. Commercial loans of 66 reporting member banks in nine principal cities of the district de creased by $4,000,000 or 0.4 per cent during the four weeks ending March 10, 1926, but on that date were $39,000,000 or 4.5 per cent larger than a year ago. Investment holdings of these banks declined $5,000,000 or 1.2 per cent during the four weeks’ period. Their demand deposits 2 This index is based on an aggregate of 34 item s o f the following seven species: yellow pine, D ouglas fir, N orth Carolina pine, white pine, hemlock, spruce and cypress. Carefully estimated weights have been accorded the different grades, determined from the governm ent’ s 1918 production reports. During the four weeks ending March 17, 1926, discounts at the Federal Reserve Bank of San Francisco rose from $23,000,000 to $50,000,000, a gain of 120.9 per cent. Expanding spring trade, corporation disbursements, and needs arising from tax and interest payments were largely responsible for this increase in demand for accommodation by member banks. Holdings of United States securities declined $13,000,000 or 28.7 per cent, and purchased acceptances increased $1,000,000 or 0.9 per cent during the same period. Total earning assets were approximately $15,000,000 (16.1 per cent) larger on March 17th than on February 17, 1926. Total reserves decreased from $294,000,000 to $260,000,000 during the four weeks, and Federal reserve note circulation declined from $189,000,000 to $185,000,000. F E D E R A L R ESE R V E B A N K O F SA N F R A N C IS C O (in millions of dollars, percentage changes in parentheses.) C on dition é-Changes from M ar. 17, One Month One Year 1926 Ago A go Total Bills and Securities. Bills Discounted ................. United States Securities.. . Bills B ought ........................... Total Reserves ...................... Total D eposits ...................... Federal Reserve N ote Circulation .......................... 105 50 32 23 260 164 185 + 15 +27 — 13 + 1 — 34 — 17 ( 16.1) (120.9) ( 28.7) ( 0.9) ( 11.5) ( 9.2) 4 ( 2.1) + 20 ( 22.9) + 26 (110.3) — 1 ( 3.2) — 5 ( 18.7) — 24 ( 8.3) + 1 ( 0.9) — 10 ( 5.1)
@FedFRASER