Full text of Economic Review (Federal Reserve Bank of San Francisco) : March 20, 1935

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MONTHLY REVIEW
OF
B U S IN E S S

C O N D IT IO N S

F ederal R e se rv e 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 a liforn ia , M a rch 20, 1935

N o. 3

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 m o re a ctiv e
in F e b ru a r y than in J a n u a ry , c o n tin u in g th e
im p ro v e m e n t o f th e tw o p r e c e d in g m on th s.
S lig h tly m o re than th e usual sea son a l ga in s
w ere rep o rte d in p riv a te e m p lo y m e n t in m o st
parts o f the district.
P ra c tic a lly all lin es o f m a n u fa ctu rin g fo r
w h ich data are a v a ila b le e x p a n d e d d u rin g F e b ­
ru ary , w ith a c tiv ity at a m a te ria lly h ig h e r le v e l
than in F e b ru a ry 1934. T h e p rin cip a l e x p a n sio n
fro m J a n u a ry ca m e in the lu m b e r in d u stry , in
w h ich a co n s id e ra b le v o lu m e o f u n filled ord ers
has a ccu m u la te d d u rin g re ce n t w e e k s. O u tp u t
o f p e tro le u m w a s a b o u t th e sam e in F e b ru a ry
as in Jan u a ry , b u t b o th p e tro le u m p r o d u c in g
and refin in g w e re c o n s id e r a b ly m o re a ctiv e
than in F e b ru a ry a y ea r a g o . F o llo w in g a
d ecrea se in Ja n u a ry, ce m en t p r o d u c tio n in ­
crea sed b y less than th e sea son a l a m o u n t in
F eb ru a ry . M a n u fa ctu re o f iro n an d steel c o n ­
tin u ed to in crea se m o d e ra te ly . C o n tra ct aw a rd s
fo r n ew b u ild in g and c o n s tru ctio n w e re sm a ller
than in the p re v io u s m o n th . R e n o v a tio n and
rep a ir w o r k o n h o m e s co n tin u e d re la tiv e ly
m o re a ctiv e than m o s t o th e r d iv isio n s o f
b u ild in g .
P rin cip a lly b e ca u se o f a sh arp in crea se in
lu m b e r sh ip m en ts, fr e ig h t c a rlo a d in g s c o n ­
tin u ed to e x p a n d d u rin g F e b ru a ry , the sea­
so n a lly a d ju ste d in d e x a d v a n c in g fr o m 70 p e r­
cen t o f th e 1923-1925 a v e ra g e in J a n u a ry to 74
in F e b ru a ry , th e h ig h e st p o in t in a n y m o n th
sin ce m id-1931. D a ily a v e ra g e d ep a rtm en t
sto re sales in cre a se d s lig h tly d u rin g F e b ­
ru ary, and th e ir v a lu e w a s 7 p e rce n t h ig h e r
than a y e a r a g o . A u t o m o b ile sales in crea sed
sh a rp ly w h erea s th e y u su a lly d e clin e d u rin g
F e b ru a ry . T h e tota l n u m b e r o f n e w cars so ld
w a s la rg e r than in a n y F e b ru a ry sin ce 1930.
R a in fa ll in the e a rly p a rt o f M a rch g a v e
ad d ed assu ra n ce to earlier p re d ic tio n s th at irri­
g a tio n w a te r fo r th e c o m in g c ro p sea son w o u ld
be su fficien t in m o s t parts o f th e d istrict. C o ld
w e a th e r reta rd ed th e g r o w t h o f fru its, w h ile
som e v e g e ta b le s w e re d a m a g e d b y fro sts. T h e
o u tlo o k g e n e ra lly , h o w e v e r , is that cr o p g r o w th




th is y e a r w ill b e so m e w h a t earlier th an in m o st
sea son s, a lth o u g h it w ill b e later than in 1934.
L iv e s to c k ra n g es im p r o v e d d u rin g F e b ru a ry
and e a rly M a rch , an d ca ttle and la m b s are n o w
re p o rte d to be in g o o d c o n d itio n in m o s t s e c­
tion s. C ro p m a rk e tin g d e clin e d so m e w h a t d u r­
in g F e b ru a ry , as is u su al in th at m on th . P rice s
o f fa rm p ro d u cts in crea sed s lig h tly fu rth er
fr o m m id -F e b r u a r y to m id -M a rch , a c c o r d in g
to the U n ite d S ta tes D e p a rtm e n t o f A g r i ­
cu ltu re, and are n o w h ig h e r in rela tion to the
1926 a v e ra g e than are p rice s o f n o n -a g ricu ltu ral c o m m o d itie s .
T h e p rin cip a l c h a n g e b e tw e e n F e b ru a ry 20
an d M a rch 20 in th e su p p ly o f T w e lfth D is trict
b a n k in g reserves ca m e d u rin g the last fe w days
o f th at p erio d , w h e n a n u m b er o f n a tion a l
ban k s used s o m e o f th eir e x ce ss reserv es to
retire th eir n a tion a l b an k n ote lia b ility . T h is
resu lted a lso in b u ild in g u p th e cash b a la n ce
o f th e U n ite d S tates T re a su r y , w h ich assu m ed
lia b ility fo r the n o te s w h e n the is s u in g ban ks
d e p o s ite d the fu n d s fo r th eir fu ll red em p tion .
A n o t h e r fa c t o r w h ic h h elp ed red u ce reserves
o f m e m b e r ban k s w a s th e c o lle c tio n b y the
T r e a s u r y o f th e first in sta llm en t o f in co m e
taxes.
T h e v o lu m e o f e x ce ss reserv es o f
T w e lfth D is tric t ba n k s co n tin u e d su b sta n tial,
h o w e v e r, n o tw ith s ta n d in g s o m e net tra n sfer o f
fu n d s to o th e r d istricts in se ttle m e n t o f c o m ­
m ercia l tra n sa ction s.
L oa n s, in v e stm e n ts, and d e p o sits o f city
ban k s in the T w e lfth D is tr ic t sh o w e d r e la tiv ely
little net ch a n g e b e tw e e n F e b r u a r y 20 and
M a rch 20.

Agriculture
A lth o u g h rain fall d u rin g F e b ru a ry w a s less
th an n o rm a l th r o u g h o u t a la rg e p a rt o f th e
d istrict, w id e s p re a d rain storm s d u rin g th e first
h a lf o f M a rch w e re o f m aterial ben efit. P r e ­
cip ita tio n fo r th e sea son to M a rch 1 a p p r o x i­
m a ted o r e x ce e d e d n o rm a l in m o st o f th e d is­
tr ic t e x c e p t in p arts o f N ev a d a , U ta h , eastern
O r e g o n , and sou th ern Id a h o. S n o w p a ck s at the
m id d le o f M a rch c o n firm e d earlier in d ica tion s

18

M O N T H L Y REVIEW OF BUSINESS CONDITIONS

th at s to re d su p p lie s o f irrig a tio n w a te r are
m o re fa v o r a b le th an a y e a r a g o and w ill be
a d eq u a te d u r in g the 1935 g r o w in g season .
F ro s ts d u rin g th e m o n th ca u se d co n sid e ra b le
d a m a g e to w in te r v e g e ta b le s in s o m e lo ca litie s
an d n e ce s sita te d th e u se o f h eaters in C a li­
fo rn ia citru s orch a rd s.

M a r c h 1935

th is w in te r, and th e c r o p is n o w in g o o d c o n d i­
tion . T ra d e fa c to r s estim a te th at th ere are in
th at area fr o m 10 to 15 m illio n b u sh e ls o f w h e a t
a v a ila b le fo r m a rk et in e x ce ss o f th e a m o u n t
w h ic h can b e m a rk e te d in th e u su al ch a n n els
b e fo r e the b e g in n in g o f th e n e x t c r o p year.
A c c o r d in g to a r e ce n t a n n o u n ce m e n t o f th e
A g r ic u ltu r a l A d ju s tm e n t A d m in is tr a tio n , th e
RAINFALL—Twelfth District
N o rth P a c ific E m e r g e n c y E x p o r t C o r p o ra tio n
( i n in c h e s)
is lik e ly to b e a u th o riz e d to sh ip s o m e o f this
t-----February----- ^
r~ Season to March 1 —'
NorNorw h e a t to th e A tla n tic se a b o a rd and to th e m id Arizona
1935 1934
mal
1935 1934
mal
w e s te rn d r o u g h t areas w h e re it can b e u sed fo r
Flagstaff .............. ....1.57 0.80
2.06
13.61 12.11
16.81
Phoenix ................ ... 3.21 0.99
.788.34
4.92
6.19
fe e d in g p u rp o se s, as w e ll as to fo r e ig n m ark ets.
California
U n d e r the p r o p o s e d plan , w h e a t fa rm ers w o u ld
Eureka.................. ... 2.73 2.31
6.30
28.35 15.85
28.68
Fresno .................. ... 2.07 1.80
1.4111.57
4.35
6.34
Los A ngeles........ ... 2.23 2.04
2.97
14.13 14.13
10.88 be p aid m o re fo r th eir w h e a t th an it a ctu a lly
Red Bluff.............. ... 4.02 2.97
3.89
19.31 13.75
17.83
s o ld fo r in the m a rk et, th e d iffe re n ce c o m in g
Sacramento.......... ... 1.97 2.97
2.83
12.35 10.73
12.95
fr o m fu n d s c o lle c te d th r o u g h p r o c e s s in g ta x es.
1.9012.64
3.52
7.41
San Diego.............. ... 4.54 1.88
San Francisco___ __2.38 4.68
3.65
17.45 11.53
16.29
P e n d in g th e c lo s in g o f this a g re e m e n t, tra d in g
Idaho
has b een slack .
1.436.73
5.23
8.48
Boise .................... ... 0.96 1.59
T h e c o m m e r cia l a p p le c r o p w a s a b o u t 25 p e r­
Nevada
R e n o ...................... ... 0.52 0.31
1.123.68
5.55
5.11
ce n t la rg e r in 1934 than in 1933 in th e P a cific
Oregon
N o r th w e st, w h ile in th e U n ite d S ta tes it w a s
B a k er.................... ... 0.49 0.57
1.234.55
5.08
7.41
Portland .............. ... 3.17 1.40
5.36
34.90 35.83
31.76
a b o u t th e sam e in b o th y ea rs. D u r in g th e
Roseburg.............. ... 2.84 1.20
4.49
24.75 13.58
24.43
cu rre n t m a rk e tin g se a so n to M a r c h 2, a p p le
Utah
Salt Lake C ity ... 0.68 2.24
1.479.31
5.79
9.34
g r o w e r s in th e P a c ific N o r th w e s t sh ip p e d a b ou t
Washington
20 p e rce n t m o r e a p p les to d o m e s tic m ark ets,
Seattle .................. ...1.92 1.29
3.66
29.63 35.21
25.18
ch ie fly in th e eastern p a rt o f th e U n ite d S tates,
Spokane................ ... 0.48 0.27
1.75
10.59 12.77
11.48
than in the 1933-1934 sea son (33,220 ca rloa d s
M a r k e tin g o f m o s t im p o rta n t d is tr ic t farm
c o m p a re d w ith 27,639 c a r lo a d s ). D e s p ite this
p ro d u cts w a s se a s o n a lly less a ctiv e in F e b ru a ry
g a in in m a rk e tin g s, P a cific N o r th w e s t c o ld
than in Ja n u a ry. F a rm p rice s, as m ea su red
s to ra g e h o ld in g s o f a p p les w e re , o n M a rch 1,
b y th e U n ite d S tates D e p a rtm e n t o f A g r ic u l­
a p p r o x im a te ly 23 p e rc e n t la r g e r th a n a y e a r
tu re in d e x fo r th e U n ite d S ta tes as a w h o le ,
a g o . T h e in crea se in th e lo c a l c r o p w a s n o
a d v a n ce d 4 p e r ce n t fr o m m id -J a n u a ry to m id d o u b t p a rtly re s p o n sib le fo r th e h e a v ie r sto ra g e
F e b ru a ry w h e n th e in d e x re a ch e d 111 p e rce n t
h o ld in g s , b u t a se v e re d e clin e in e x p o r ts a lm o st
o f th e 1910-1914 base, and w a s 34 p e rce n t
eq u a l t o th e in crea se in d o m e s tic sh ip m en ts
h ig h e r than a y e a r earlier. T r u c k c ro p s , m eat
w a s an e q u a lly im p o rta n t fa cto r. T h e e n fo r c e ­
an im als, and d a iry p r o d u cts g r o u p s w e re ch iefly
m en t o f ta riffs, q u o ta s, and o th e r re strictio n s
re sp o n s ib le fo r th e J a n u a ry -F e b r u a r y ga in ,
a g a in st im p o rts o f a p p les o n th e p a rt o f n ation s
w h ile p rice s in n e a rly all g ro u p s o f c o m m o d ­
fo r m e r ly im p o r tin g la rg e q u a n tities o f T w e lft h
ities w e re su b sta n tia lly h ig h e r than a y e a r a g o .
D is tr ic t ap p les has b e e n an im p o rta n t fa c to r
T h e r e has b een p r a c tic a lly n o w in te r k illin g
r e d u c in g th e e x p o r t m a rk e t fo r th a t fru it.
o f fa ll-s o w n w h e a t in th e P a cific N o r th w e s t
P r ic e s re c e iv e d b y a p p le g r o w e r s d u rin g the
m a rk e tin g y e a r to d ate h ave a v e ra g e d a b o u t
th e sam e as last season .
Agricultural Marketing Activity—
f--------February--------\ t---- Season to Date---- >
T h is se a so n ’s C a lifo rn ia N a v e l o ra n g e c ro p
Carlot Shipments
1935
1934
1935
1934
is still e x p e c te d to b e u n u su a lly la rg e , estim ates
Apples and Pears
4,312
3,115
50,275
43,193
p la c in g it a b o u t 40 p e r c e n t in e x ce s s o f last
Citrus Fruits . . .
6,316
3,682
23,037
17,043
Vegetables ..........
8,787
8,766
85,330
85,139
y e a r ’s cro p . S h ip m e n ts are r u n n in g c o n s id e r ­
Exports
a b ly h e a v ie r than a y e a r a g o an d p rice s h av e
Wheat (bu.) ___
833 2,743,934
2,789,158 10,477,524
Barley (bu.)........
165,291
450,458
3,549,661 4,056,100
b een h ig h e r th an la st y ea r, in d ic a tin g a su b ­
Receipts*
stan tial g a in in in c o m e o f o ra n g e g r o w e rs .
Cattle ..................
70,515
73,765
167,848
159,185
Hogs ....................
155,868
229,305
332,092
527,674
T h e le m o n c r o p is a lso u n u su a lly la rg e th is
Sheep....................
182,510
144,050
414,837
365,329
sea son . A r e c o r d v o lu m e o f s h ip m e n ts d u rin g
Eggs (cases)........
156,219
148,203
315,157
308,751
Butter (lbs.)........
4,641,399 5,418,278
9,366,359 10,996,145
re ce n t m on th s has b e e n a c c o m p a n ie d b y a
Wheat (carlots)..
2,642
5,580
37,327
40,658
Barley (carlots) . .
475
489
6,549
4,485
m a rk ed d e clin e in p rice s , h o w e v e r , and cu rre n t
Storage Holdings*
^----------- 1935----------- >
,• 1934----------- v
g r o s s retu rn s to g r o w e r s p r o b a b ly d o n o t d iffe r
(end of month)
February
January
February
January
m a te ria lly fr o m th o s e o f la st y ea r.
2,913,000 3,953,000
5,962,000 5,927,000
Wheat (bu.)........
Beans (b a g s )___
1,562,000 1,927,000
1,596,000 1,933,000
D e c id u o u s fru it orch a rd s in C a lifo rn ia ap p ear
Butter (lbs.)........
73,000
355,000
3,088,000 5,990,000
Eggs (cases)........
..........
..........
31,000
3,000
at p re se n t to b e in g o o d c o n d itio n . W e a th e r
has b een so m e w h a t c o ld e r th is w in te r th an it
*A t principal district markets.




M a rc h 1935

FEDERAL RESERVE AG EN T A T SAN FRANCISCO

w a s a y e a r a g o , and th e g r o w t h o f c ro p s p r o b ­
a b ly w ill n o t a d v a n ce as ra p id ly th is y e a r as
it did in 1934, a lth o u g h th e sea son is lik e ly to
be earlier than in m o s t years. P re s e n t stu d ies
and plans n o w b e in g fo rm u la te d b y g r o w e r s
and p ro d u ce rs in d ica te th at m o re o f th is d is­
t r ic t’ s d e cid u o u s fru it c r o p s w ill b e m a rk eted
u n d er A g r ic u ltu r a l A d ju s tm e n t A d m in istr a tio n
o r state p ro ra te a g re e m e n ts th is y e a r than last.
F a v o ra b le w e a th e r co n d itio n s in th e last h alf
o f F e b ru a ry im p ro v e d th e co n d itio n o f m o s t
C a liforn ia s p r in g tru ck cro p s.
A lth o u g h re ce ip ts o f b u tte r at le a d in g P a cific
C oa st m a rk ets w e re re la tiv e ly sm all d u rin g
F e b ru a ry , p rice s d e clin e d c o n s id e r a b ly fr o m the
p eak rea ch e d e a rly in th e m o n th . S h ip m en ts
o f b u tter in crea sed d u r in g M a rch and p rices
d eclin ed fu rth e r, re a ch in g 28 cen ts p er p o u n d
fo r 92 sco re b u tte r at San F ra n c is co . A t that
lev el th e q u o ta tio n is still 4 cen ts h ig h e r than
a y ea r a g o . R e c e ip ts o f e g g s c o n tin u e d in large
v o lu m e d u rin g F e b ru a ry . T h e sea son a l m o v e ­
m en t o f e g g s in to s to ra g e , w h ic h is o rd in a rily
lig h t d u rin g F e b ru a ry , w a s u n u su a lly sm all in
a m o u n t this y e a r and sto re d s to ck s w e r e n e g ­
lig ib le on M a rch 1. T h e u su al d e clin e in e g g
p rices w a s re p o rte d d u r in g F e b r u a r y and the
first h a lf o f M a rch . In San F r a n c is c o th e p rice
o f U n ite d S tates N o . 1 E x tra s d e clin e d fr o m
24 cen ts p er d o z e n in ea rly F e b r u a r y to 21^4
cen ts p er d o z e n in m id -M a rch . L a s t M a rch the
sam e g ra d e o f e g g s so ld in th at m a rk et fo r 15*^
cen ts p er d ozen .
M o istu re d u rin g F e b r u a r y im p r o v e d ra n g e
feed p ro sp e cts in a lm o st all parts o f th e d istrict.
C a liforn ia and A r iz o n a ra n g es w e r e in e x ce lle n t
c o n d itio n o n M a rch 1, w h ile ra n g e s v a rie d fro m
fair to g o o d in o th e r states o f th e district.
S h orta g es o f h a y and fe e d s are re p o rte d o n ly
fro m eastern Id a h o , so u th e a ste rn O r e g o n , and
p arts o f U ta h and N ev a d a .
C attle o n d istrict ra n g es are in fa ir to e x ­
ce lle n t co n d itio n . L o s s e s h a ve b een sm all b e ­
cau se o f th e m ild w in te r w e a th e r w h ic h has
a lso p erm itte d the u se o f o p e n ra n g es, w ith
so m e s a v in g o f feed . G r o w e rs in g ra s s-b e e f
se ctio n s o f C a lifo rn ia e x p e c t to finish and m a r­
k et th eir ca ttle earlier than usual. A lth o u g h
th e v o lu m e o f th ese sh ip m en ts to lo c a l m ark ets
is e x p e cte d to e x c e e d th e a v e ra g e o f th e past
five years, the s u p p ly o f m a rk eta b le b e e f ca ttle
a v a ila b le to T w e lfth D is tr ic t m a rk ets is n o t
e x ce ssiv e . A v e r a g e p rice s p a id fo r ca ttle at
d istrict fa rm s in m id -F e b ru a ry w e re 20 p e rce n t
h ig h e r than a m o n th earlier, 50 p e rce n t h ig h er
than in m id -D e c e m b e r, and 83 p e rce n t h ig h e r
than a y e a r a g o . T h e ea rly s p r in g la m b cr o p
in th e d istrict is s lig h tly la r g e r this y e a r than
in 1934. W e a th e r c o n d itio n s d u r in g th e p ast
w in te r w e re g e n e ra lly fa v o r a b le in all states
and fe e d w a s am ple. In C a lifo rn ia , ea rly lam bs




19

d e v e lo p e d ra p id ly and first sh ip m en ts rea ch ed
d istrict m a rk ets late in F e b ru a ry . P rice s p aid
g r o w e r s w e re s lig h tly lo w e r than th o se in
e ffe c t at th is tim e last year.
In d u s tr y
In d u stria l p r o d u c tio n in th e T w e lfth D is trict
e x p a n d e d s o m e w h a t m o re than is usual d u rin g
F e b ru a ry , c o n tin u in g the u ptu rn o f the p r e c e d ­
in g m o n th . O p e ra tio n s in m o st in d u stries e x ­
ce e d e d th o se in F e b r u a r y o f b o th o f th e tw o
p r e c e d in g years.
T h e n u m b er o f w o r k e rs e m p lo y e d b y r e p o rt­
in g in d u stria l e sta b lish m en ts in C a liforn ia ,
O r e g o n , and W a s h in g to n in crea sed s lig h tly
m o re th an se a so n a lly d u rin g F e b ru a ry , w h ile
a d e crea se in e m p lo y m e n t in m a n u fa ctu rin g
c o n ce rn s in U ta h w a s sm a ller than in F e b ru a ry
o f a n y o f th e p r e c e d in g th ree years. E m p lo y ­
m en t in crea sed in p r a c tic a lly all lines fo r w h ich
d ata are a v a ila b le, b o th in c o m p a ris o n w ith
J a n u a ry o f th is y e a r and in rela tion to e m p lo y ­
m en t in F e b ru a ry 1934. O n e o f the la rg est
in crea ses in e m p lo y m e n t w a s re p o rte d b y the
lu m b e r in d u stry , w h ile m a n u fa ctu rers o f iron ,
steel, and o th e r m etal p r o d u c ts a lso a d d ed c o n ­
sid e ra b ly to w o r k in g fo rce s . M o tio n p ictu re
p r o d u c e r s in C a lifo rn ia retain ed th e c o m p a ra ­
tiv e ly h ig h sch e d u le s o f Jan uary. T h e r e w a s
little ch a n g e in e m p lo y m e n t in th e fo o d m a n u ­
fa c tu r in g in d u stry d u rin g F e b ru a ry , b u t a sea­
son a l in crea se in v e g e ta b le ca n n in g a c tiv ity
w a s re p o rte d in M a rch .
T o t a l w a g e p a y m e n ts b y th e in d u stries re­
p o r tin g e m p lo y m e n t data in C a liforn ia , O r e g o n ,
W a s h in g to n , and U ta h in crea sed d u rin g F e b ­
ru ary. T h e in crea ses in p a y ro lls w e re la rg er

Employment—
-California-------- \ r
------ Oregon
No. of
No. of
No. <— Employees —> No. >— Employees — »
of
Feb.
of
Feb.
Feb.
Feb.
1934
1934
Firms
1935
Industries
Firms 1935
17,080
15,853
All Industries* . . . 1,002 131,011 125,533 116
(+7.7)
(+4.4)
Stone, Clay, and
109
45
5,085
Glass Products. 53
3
5,474
( + 142.2)
( + 7.6)
Lumber and Wood
8,882
7,893
Manufactures .. 94 10,722 10,075
40
( + 12.5)
(+ 6 .4 )
1,604
10 1,312 1,283 7 1,733
( + 8.0)
(+ 2 .3 )
Clothing, Millinery,
185
198
and Laundering. 123
9,106
8,898
6$
(+7 .0 )
(+ 2 .3 )
Food, Beverages,
1,443
1,296
31
and Tobacco.. . 262 27,259 27,517
(+11.3)
(— .9)
Public Utilities. . . 44 42,178 42,845
(— 1.6)
29
4,715
4,830
Other Industriesf. 418 65,208 61,929
(— 2.4)
(+ 5 .3 )
42 11,930 10,746
Miscellaneous . . . .
( + 11.0)
Wholesale and
213 34,083 31,270
(+ 9 .0 )
*Public utilities and wholesale and retail figures not included in this
total, jlncludes the following industries: Metals, machinery,
and conveyances; leather and rubber goods; oils and paints;
printing and paper goods. {Laundering only.
Figures in parentheses indicate percentage change from February
1934.
r

20

M O N T H L Y REVIEW OF BUSINESS CONDITIONS

than th e in crea ses in e m p lo y m e n t, s h o w in g a
fu rth e r rise in a v e ra g e w e e k ly ea rn in g s per
w o rk e r.
C o n tra c t a w a rd s fo r p u b lic w o r k s c o n s tr u c ­
tion w e re sm a lle r in F e b r u a r y th an in Jan uary,
bu t th e a g g r e g a te fo r th e tw o m o n th s w a s
a b o u t th e sa m e as in th e first t w o m o n th s o f
1934. W o r k o n p r e v io u s ly a w a rd e d co n tra cts
co n tin u e d m o r e a ctiv e th an a y e a r earlier. C o n ­
tra cts h a v e n o w b e e n let on m o s t o f th e p r o je c ts
fo r w h ic h fu n d s h a v e b een a llo tte d b y the
P u b lic W o r k s A d m in is tr a tio n . P la n s fo r a
la rg e n u m b e r o f a d d itio n a l p r o je c ts , h o w e v e r ,
h ave b e e n s u b m itte d fo r co n s id e ra tio n u n d er a
n ew p r o g r a m o f p u b lic w o r k s n o w p e n d in g
b e fo r e C o n g re ss . P e rm its issu ed fo r in d u strial
and co m m e r c ia l b u ild in g w e re in sm a ller v o l­
u m e in F e b ru a ry th an in th e p r e v io u s m on th .
P e rm its fo r re sid e n tia l b u ild in g w e re th e sam e
as in Ja n u a ry. A s in o th e r re ce n t m o n th s, w o r k
on a ltera tio n s an d rep a irs w a s fa ir ly a ctiv e.
L u m b e r p r o d u c tio n e x p a n d e d sh a rp ly , the
sea so n a lly a d ju s te d in d e x risin g fr o m 53 p er­
ce n t o f th e 1923-1925 a v e ra g e in J a n u a ry to 62
p e rce n t in F e b r u a r y , a p o in t h ig h e r than in an y
m on th , w ith th e e x c e p tio n o f last M a rch , sin ce
M a y 1931. E x p a n s io n in o p e ra tio n s , th o u g h
g en era l th r o u g h o u t th e d istrict, w a s p a rticu ­
la rly p r o n o u n c e d in w e s te rn pin e re g io n s,
w h e re lu m b e rin g h ad b een re la tiv e ly less a ctiv e
in th e t w o p r e c e d in g m o n th s. N e w o rd e rs fo r
lu m b e r co n tin u e d to a ccu m u la te m o re ra p id ly
than th e y w e re filled , a d d in g to a v o lu m e o f
u n sh ip p e d o rd e rs a lre a d y la rg e r than is usual
fo r th is tim e o f y ea r. S h ip m en ts o f lu m b er,
w h ich cu rre n tly e x c e e d th o se o f F e b r u a r y 1934
o r 1933, h a v e b e en ru n n in g ahead o f p r o d u ctio n .
A c t iv it y in th e p e tro le u m in d u stry ch a n g e d
little d u rin g F e b ru a ry .

Industry —
Indexes of daily average production, adjusted for seasonal variation
(1923-1925 daily average=100)
1934-19'33— ,
-1935 .1934-------- N
Feb. Jan. Dec. Nov. Feb. Jan. Dec.
General
49
48
42
50
50
50
Carloadings— Industrial. 54
145 144 141
Electric Pwr. Production 15411 15411 149 149
Manufactures
Lumber ........................... 62
53
47
46
61
56
53
Refined Mineral Oilsf. .
120 120 121 107 107 116
Flour ..............................
95
99
89
92
94
9Í1Í 102
87
Cement ..........................
81
85
85
53
56
75
132
Wool Consumptionf. . . .
94
87 113
107
95
Slaughter of Livestock. . 9711 101 118 118
111 113 106
Minerals
Petroleum (California) f 691 76
73
72
68 69 72
64
64
67
Lead (United States)$ ..
60
55
Silver (United States) $.
35
29
36
37
53
Building and Construction#
T otal................................
33
37
42
53
45
39
33
Building Permits— Value
Larger Cities..............
17
10 9 11
13
14
13
Smaller Cities............
19
20 20 20 14 11 11
Engineering Contracts
Awarded— V alue
T otal........................
76
80 118
84
69
73
71
Excluding Buildings 167 207 150 125
145 127 125
fN ot adjusted for seasonal variation. {Prepared by Federal Re­
serve Board. #Indexes are for three months ending with the
month indicated, flPreliminary.




M a r c h 1935

T rade
F r e ig h t ca rlo a d in g s e x p a n d e d c o n s id e r a b ly
m o re than is u su al in F e b ru a ry , a fte r h a v in g
b een m a in ta in ed at a h ig h e r le v e l th an is c u s ­
to m a r ily e x p e c te d in th e th ree p r e c e d in g
m on th s. T h e rise in th e s e a s o n a lly a d ju ste d
in d e x d u rin g F e b r u a r y a m o u n te d to 4 p oin ts,
b r in g in g it to 74 p e rce n t o f th e 1923-1925 a v e r­
age. In O c t o b e r 1934, th e in d e x s to o d at 62,
th e lo w p o in t fo r th at y ea r. M o s t o f the rise
in th e in d e x sin ce th at lo w p o in t w a s r e co rd e d
has tak en p la ce in sh ip m en ts o f m e rch a n d ise
and m isce lla n e o u s c o m m o d itie s in less than
ca rlo a d lots, b u t m o re r e c e n tly b u lk traffic,
p a rticu la rly fo r e s t p ro d u c ts , has co n tr ib u te d
m a teria lly to the in crea se. T o t a l lo a d in g s w e re
12 p e rce n t la rg e r in F e b ru a r y th an a y e a r a go.
RETAIL TRADE—Twelfth District
Percentage changes in value of sales and stocks
,----------- 1935 compared with 1934----------- ,
STOCKS
,------- NET SALES------- ,
Jan. 1 to
end of
February
February
February
Department Stores . . .
7.3 ( 73)
8.9
— 2.3 (54)
Los Angeles............
7.3 ( 6)
8.0
— 12.1 ( 6)
Other So. California
17.8 ( 9)
14.6
0.3 ( 7)
Oakland ..................
7.9 ( 5)
11.9
9.9 ( 5)
San Francisco........
4.3 ( 8)
5.5
— 1.8 ( 7)
5.5 ( 18)
7.5
1.1 (16)
Bay Region............
Central California..
16.2 ( 6)
18.4
1.6 ( 6)
Portlandf................
13.4 ( 8)
13.9
12.2 ( 7)
Seattle ....................
6.6( 4)
11.7
12.9 ( 4)
Spokane ..................
6.6( 5)
12.1
10.5 ( 5)
Salt Lake City........
3.6 ( 4)
5.4
— 1.5 ( 3)
Apparel Stores ..........
14.0 ( 31)
13.4
— 5.6 (19)
Furniture Stores........
8.3 ( 32)
10.8
— 12.3 (24)
All Stores....................
8.0(136)
9.6
— 4.0 (97)
■{•Includes five apparel stores which are not included in district
department store total.
Figures in parentheses indicate number of stores reporting.

T h e v a lu e o f d a ily a v e ra g e d e p a rtm e n t store
sales is o rd in a rily a b o u t th e sam e in F e b ru a ry
as in J a n u a ry, b u t th is y e a r it in crea sed s o m e ­
w h a t and th is b a n k ’s se a s o n a lly a d ju ste d in d e x
ro se fr o m 79 to 80 p e rce n t o f th e 1923-1925
a v e ra g e . L a st y ea r in F e b ru a ry , th e in d e x w a s
74, and tw o y e a rs a g o it w a s 65. In cre a ses in
sales fr o m J a n u a ry to F e b r u a r y th is y e a r w e re
rath er g en era l th r o u g h o u t th e T w e lft h D istrict.
A s c o m p a r e d w ith a y e a r earlier, th e la rg est
e x p a n s io n in sales co n tin u e s to be re p o rte d fro m
ru ral areas. In cre a s e d sales g e n e r a lly reflected
la rg e r v o lu m e s o f g o o d s so ld ra th er than h ig h er
p rice s. In v e n to r ie s o f d e p a rtm e n t sto re g o o d s
w e re in crea sed a b o u t as m u ch as is u su al d u r­
in g F e b ru a ry .
M a rk e d e x p a n sio n in sales o f n e w a u to ­
m o b ile s d u rin g F e b r u a ry w a s in c o n tra st w ith
th e u su al te n d e n c y d u r in g th a t m o n th , and the
se a so n a lly a d ju ste d in d e x ro s e fr o m 69 to 103
p e rce n t o f th e 1923-1925 a v e ra g e . T h e in d e x
fo r th e la ter m o n th is h ig h e r than at a n y tim e
sin ce A p r il 1930. S ales o f b o th p a s se n g e r and
c o m m e r c ia l cars in cre a se d sh a rp ly . T h e n u m ­
b e r o f n e w cars so ld w a s tw ic e as la rg e as in
F e b r u a ry 1934 and o v e r th ree tim es as la rg e as

M a rc h 1935

FEDERAL RESERVE AG E N T A T SAN FRANCISCO

the lo w fo r the d e p re ssio n rea ch ed in F e b ru a ry
1933.
A d ecrea se o f 2 p e rce n t in a g g re g a te sales o f
re p o rtin g w h o le sa le rs d u rin g F e b ru a ry w as
sm aller than o rd in a rily takes p la ce at this seaWHOLESALE TRADE—Twelfth District
Percentage changes in value of sales
February 1935
---- compared with---Jan. 1935
Feb. 1934
Agricultural Implements........
39.7
30.0
4.6
Automobile Supplies................ ....... 2.1
Drugs ........................................ — 9.4
1.9
Dry Goods.................................. — 4.9
8.7
Electrical Supplies....................
16.8
32.5
Furniture.................................. ....... 5.9
16.5
Groceries .................................. — 7.4
16.6
17.2
Hardware.................................. ....... 6.6
21.2
1.5
Shoes ........................................
Paper and Stationery..............
— 9.5
9.3
13.3
All Lines.................................... — 1.5
r

la n tic to P a cific traffic in crea sed d u rin g the
m on th . Iro n , steel, and tin p la te sh ip m en ts held
up fa irly w e ll, and th e to n n a g e o f o th e r classes
o f c a r g o in crea sed c o n s id e ra b ly .
P r ic e s

Cumulative
1935
compared
with 1934
47.3
8.5
1.1
10.0
28.3
31.3
14.0
14.6
2.8
7.5
12.3

son . In crea ses in sales o f a g ricu ltu ra l im p le ­
m en ts, e lectrica l su p p lies, fu rn itu re, and sh oes
e x ce e d e d season al e x p e cta tio n s and ex p a n sion
in sales o f h ard w are and a u to m o b ile su pplies
w a s in co n tra st w ith the usual te n d e n cy d u rin g
the m on th . D ecre a s e s rep orted in sales o f dru g,
d ry g o o d s , and g r o c e r y w h ole sa le rs w ere no
la rg er than is cu sto m a ry in F eb ru a ry . A s c o m ­
pared w ith F e b ru a ry 1934, tota l sales in creased
13 p ercen t, o r b y a so m e w h a t la rger am ou n t
than in the p re ce d in g m on th . W h o le s a le prices
o f finished g o o d s rem ained p ra ctica lly u n ­
ch a n g ed at 81 p ercen t o f the 1926 avera ge
d u rin g the m on th , a c c o r d in g to figu res o f the
U n ited States B ureau o f L a b o r. A yea r ag o,
the in d ex w a s 77.
V o lu m e o f in tercoa sta l w a te r-b o rn e c o m ­
m erce d eclin ed b y an ad d ition a l 80,000 ton s in
F e b ru a ry to 543,000 ton s, the sm allest v o lu m e
o f ca rg o fo r a n y m on th sin ce A p r il 1933. T h e
decrea se w a s con fin ed to ea stb ou n d traffic
th rou g h the P an am a Canal. E a stb o u n d lu m b er
sh ip m en ts w e re red u ced fro m the rela tiv ely
h ig h lev el o f th e tw o p re ce d in g m on th s, and
petro le u m c a r g o d eclin ed sh a rp ly fu rth er. A t -

Distribution and Trade —
,--------- 1935-1934--------- N ,— 1934-1933— ,
Feb. Jan. Dec. Nov. Feb. Jan. Dec.
Indexes adjusted for seasonal variation
Carloadingst
(1923-1925 average=100)
66 67 64
65
69
70
Total .......................... , 74
80
81
85
84
80
78
Merchandise ............ . 89
Intercoastal Trade
68 77 79 91 72 83
Total .......................... , . 65
71
73
69
79
81
87
Westbound................ . 81
69
76
99
89
77
63
Eastbound ................ . 61
Retail Trade
Automobile Salesî
52
35
45
69
73
71
T o ta l...................... . 104
65
97
Passenger..............
66 66 49 31 43
113
82
69
Commercial .......... . 229
128 142 124
Department Store
74
72
76
79
83
81
Sales$ .................... , 80
65
62
62
64
65
60
61
Stocks§ ..................
A
a
H
ia
I
1
7
«fin
flû
C
f.
Collections#
Regular............
45.2 48.2 47.0 48.3
43.5 46.4 43.
18.7 17.3 18.0
16.6 17.9 15.
Installment .. .. . 16.8
{Daily average. §At end of month. #Percent of collections dur­
ing month to amount outstanding at first of month.




21

W h o le s a le p rices, w h ic h had b een a d v a n cin g
ste a d ily sin ce N o v e m b e r , did n o t ch a n g e m u ch
on the a v e ra g e d u rin g late F e b ru a ry and e a rly
M a rch , and so m e slig h t re ce ssio n w a s rep orted
in th e se co n d and th ird w eek s o f M a rch .
S u b sta n tia l in crea ses in w h o le sa le p rices
o v e r th e p ast y e a r h ave b een a cco u n te d fo r
en tire ly b y a d v a n ce s in the farm p r o d u c ts and
fo o d g ro u p s. T h e in d e x o f all o th e r c o m m o d ­
ities w a s lo w e r in m id -M a rch than at an y tim e
sin ce J a n u a ry 1934, a lth o u g h su b sta n tia l a d ­
v a n ce s in the p rice s o f m a n y c o m m o d itie s in
this g en era l g r o u p had taken p la ce in 1933. B e ­
tw e e n F e b ru a ry 1934 and F e b ru a ry 1935, h o w ­
ever, a v era g e p rices o f farm p ro d u cts a d v a n ced
29 p e rce n t, w h ile p rice s o f fo o d s in crea sed 22
p ercen t. T h e a d v a n ce in p rices o f c o m m o d itie s
in th ese g r o u p s o c c u r re d p rin cip a lly a fter the
s e v e rity o f the d r o u g h t w a s rea lized in late
su m m e r o f 1934, b u t th e c o n s cio u s p ro se cu tio n
o f a n a tion a l p ro g ra m to esta b lish a b etter
b a la n ce b e tw e e n fa rm and in d u stria l p rices w as
a lso e ffe ctiv e . M e a su re d b y g r o u p a v era ges,
th is o b je c t iv e o f th e a d m in istra tio n w a s at­
tained to a co n s id e ra b le d e g re e and in the 1934

Bank Debits* —
First two months
February
February
1934
1935
1935
1934
Arizona
Phoenix............ $ 25,623 $ 21,564 $ 56,588 $ 44,473
California
16,786
21,907
7,641
Bakersfield
9,788
44,173
29,061
20,326
Berkeley ..........
13,645
33,081
38,755
15,578
17,688
Fresno ............
42,443
51,234
19,811
Long Beach . . .
24,400
1,186,892
1,052,159
506,600
Los Angeles . . . .
567,535
280,690
292,914
Oakland ..........
129,570
141,781
40,353
36,915
19,365
17,884
Pasadena ........
148,771
63,293
76,241
35,247
Sacramento . . .
13,435
10,471
4,832
San Bernardino
6,078
58,692
67,492
33,219
27,027
San Diego........
1,311,411
671,077
589,820
1,370,133
San Francisco . .
33,057
14,852
13,223
28,736
San Jose ..........
17,656
15,491
8,300
6,905
Santa Barbara .
2,535
Santa Rosa . . . .
2,967
6,437
5,700
27,410
12,416
11,428
24,878
Stockton ..........
Idaho
11,384
9,129
26,520
20,632
Nevada
14,675
11,115
6,643
4,994
Oregon
Eugene ............
3,445
2,966
7,173
6,208
Portland .......... .
109,810
100,543
229,156
207,538
9,558
7,766
20,850
16,988
Utah
11,403
7,480
25,808
19,309
Salt Lake City.
45,297
37,595
101,275
84,147
Washington
Bellingham . . . .
3,859
3,658
8,332
8,026
4,052
Everett ............
4,603
9,744
8,841
.
123,095
109,809
258,903
239,277
Spokane ..........
21,002
60,488
45,891
27,885
Tacoma ..........
18,178
20,143
43,079
38,821
Walla W alla...
3,844
3,998
7,565
7,391
Yakima ..........
9,059
7,942
17,351
18,731
Total ........ .$2,022,792
*In thousands of dollars.

$1,781,314

$4,222,170

$3,813,151

22

M O N T H L Y REVIEW OF BUSINESS CONDITIONS

m a rk e tin g se a son , th o se fa rm ers w ith c r o p s to
h a rv est b e n e fite d m a te ria lly fr o m h ig h p rices.
In recen t w e e k s, th e a d v a n ce in a g ricu ltu ra l
p rices has b e e n ch e c k e d , and w h o le s a le fo o d
p rices h a v e te n d e d to d e clin e sin ce th e w e e k
e n d in g F e b r u a r y 23.
R e ta il fo o d p rice s in th e U n ite d S tates w e re
a p p r o x im a te ly 13 p e r c e n t h ig h e r in F e b ru a ry
th an a y e a r a g o . In cre a se s o v e r th e y e a r -p e r io d
in L o s A n g e le s and S a lt L a k e C ity w e r e 22
p e rce n t and 17 p e rce n t, r e s p e ctiv e ly , and th o se
fo r P o rtla n d , S ea ttle, and San F r a n c is c o a p ­
p ro x im a te d th e a v e ra g e o f 13 p e rce n t fo r the
U n ite d S ta tes as a w h o le . A lth o u g h retail fo o d
p rice s co n tin u e d to rise in the la st tw o w eek s
o f F e b r u a ry , th e rate o f in crea se w a s s lo w e r
than in th e t w o p r e c e d in g m on th s.
M o s t d ried fr u it p rice s w e re slig h tly lo w e r in
m id -M a r c h than a m o n th earlier. Q u o ta tio n s on
ca n n ed a p rico ts and p ea ch es w e re re d u ce d on
s o m e sizes and g ra d e s b u t the re d u ctio n s w ere
n o t g en e ra l. D e s p ite la rg e s to ck s , ca n n ed pear
p rices re m a in e d u n ch a n g e d .
S p o t fo r e ig n s ilv e r p rice s a d v a n ce d to 5 9 ^
cen ts p e r o u n c e o n M a rch 15, th e h ig h e st q u o ­
ta tion fo r refin ed s ilv e r sin ce A u g u s t 1928.
Z in c p rice s te n d e d to im p r o v e , w h ile th o se fo r
lead an d fo r c o p p e r in b o th th e d o m e s tic and
fo r e ig n m a rk et s h o w e d little o r n o ch a n g e.
T h e C r e d it S itu a tio n
A lth o u g h s o m e r e la tiv e ly la rg e flu ctu a tion s
w e re re c o r d e d in d em a n d d e p o sits , th e c o n d i­
tio n o f c it y ba n k s in th e T w e lft h D is tr ict
sh o w e d little n et ch a n g e b e tw e e n F e b r u a r y 20

SOURCES OF FUNDS
Reserve
Bank
Credit
— .4
— 2.7
— .7
+ 2.7
— 3.0
— 1.9
+ 2.4
+
*8
— 2.0
+ 4.0

Commercial Treasury
Operations Operations
1-11.9
— 1.2
- 6.9
— 14.2
- .1
— 16.2
- 4.3
+ 11.4
- 9.0
+
-1
- 8.5
— 17.1
- 1.9
— 1.8
- 8.4
+ 6.1
- 5.1
+
.8
-18.5
— 15.4

Total
Supply
+ 10.3
— 10.0
— 16.8
+ 18.4
+ 6.1
— 10.5
+ 2.5
+15.3
+ 3.9
— 29.9

USES OF FUNDS
Demand
Week
for
Ending
Currency
1935— January 16. . — 7.0
January 23. . — 4.9
January 30. . — 2.0
February 6. + 6 . 0
February 13. + 2.3
February 20. — .9
February 27.
*
March 6. . .
+ 5 .9
March 13 . . . — 2.0
March 2 0 ...
+ 1.4
♦Change less than $50,000.




Member
Bank
Reserve
Deposits
+ 8.6
— 7.2
— 10.6
+ 12.5
+ 3.7
— 11.9
+ 1.0
+ 11.5
+ 6.4
— 27.0

Other
F.R.B.
Accounts
+ 8.7
+ 2.1
— 4.2
— .1
+
.1
+ 2.3
+ 1.5
— 2.1
— .5
— 4.3

and M a rch 20. In v e stm e n ts in se cu ritie s oth e r
th an th o se o f th e U n ite d S tates G o v e r n m e n t
c o n tin u e d to in crea se m o d e ra te ly . C o n s id e rin g
th e d istrict as a w h o le , th ere w a s a n et o u tw a rd
m o v e m e n t o f fu n d s in p a y m e n t o f c o m m e rcia l
and finan cial a cc o u n ts d u rin g th e fo u r w eek s
u n d er re v ie w . T h e T w e lft h D is tr ic t p a id m o re
in to th e U n ite d S tates T r e a s u r y than th e
T r e a s u r y d isb u rse d in the T w e lft h D is tr ict, re­
fle c tin g p a rtly th e in flu en ce o f in c o m e ta x c o l­
le ctio n s as w e ll as d e p o s its o f fu n d s w ith th e
T r e a s u r y b y sev era l n a tion a l ba n k s fo r re d e m p ­
tio n o f th e ir c ir c u la tin g n o te s. A s a resu lt o f
the co m m e r cia l tra n sfers o f fu n d s o u t o f the
d is trict and th e T r e a s u r y ’s e x ce s s o f c o lle c tio n s
o v e r d isb u rse m e n ts, m e m b e r b a n k rese rv e b a l­
a n ces and n o n m e m b e r b a n k d e p o s its at th e R e ­
se rv e B an k w e re re d u ce d .
O n M a rch 11, th e S e cre ta ry o f th e T r e a s u ry
a n n o u n ce d p lan s fo r r e tir in g n a tion a l ban k
n otes. T h e re tire m e n t is to b e e ffe c te d b y th e
r e d e m p tio n o f all b o n d s b e a rin g th e c ir c u la tio n
p r iv ile g e e x c e p t th o s e b o n d s w h ic h b e a r th at
p r iv ile g e b y v irtu e o f s p e cia l p r o v is io n s w h ich
e x p ire on J u ly 22, 1935. N o te s s e cu re d b y th o se
la tte r b o n d s w ill o f n e c e s s ity b e re tire d in J u ly.
A c tu a l w ith d ra w a l o f th e n o te s fr o m c ir c u la ­
tio n w ill take co n s id e r a b le tim e, b u t th e lia b il­
ity fo r th e ir p a y m e n t is to be tra n sfe rre d fro m
n a tion a l ban k s to th e U n ite d S ta tes T r e a s u r y
b y A u g u s t 1 o f th is year. N a tio n a l b a n k s in
th e T w e lfth D is tr ic t had a n o te lia b ility o f
$121,337,000 o n D e c e m b e r 31, 1934. T h is to ta l
w a s 18.5 p e rce n t o f th e n o te lia b ility o f all
n a tio n a l ban k s in th e U n ite d S ta tes, a lth o u g h
FEDERAL RESERVE BANK OF SAN FRANCISCO
(in millions of dollars)

SOURCES AND USES OF BANKING RESERVES
Twelfth District
Changes in millions of dollars during the weeks indicated

Week
Ending
-January 16..
January 23..
January 30..
February 6.
February 13.
February 20.
February 27.
March 6. ..
March 1 3 ...
March 20. . .

M a r c h 1935

Total
Demand
+10.3
— 10.0
— 16.8
+18.4
+ 6.1
— 10.5
+ 2.5
+15.3
+ 3.9
— 29.9

■Condition*
Mar. 20 Mar. 13 Feb. 20 Mar. 21
1935 .
1934
1935
1935
170
167
167
168
Total Bills and Securities..........
1
1
Bills Discounted......................
3
Bills Bought............................
166
166
166
166
United States Securities..........
359
341
267
Total Reserves.............................. 343
290
209
306
Total Deposits.............................. 294
Federal Reserve Notes in
201
199
196
Circulation................................ 202
Ratio of Total Reserves to De­
posit and Federal Reserve Note
69.2
70.8
69.6
Liabilities Combined................
65.8

REPORTING MEMBER BANKS-—Twelfth District
(in millions of dollars)
Condition
" ^
r
Mar. 20 Mar. 13 Feb. 20 Mar. 21
1935
1934
1935
1935
1,952
1,780
1,942
Loans and Investments— Total.. 1,955
881
878
876
Loans— Total ..........................
878
204
218
On Securities........................
205
203
663
672
673
All Other................................
675
899
1,076
1,064
1,077
Investments— Total ................
570
689
663
673
United States Securities . ..
329
387
404
401
Other Securities....................
109
161
154
176
Reserve with Reserve Bank........
605
729
737
737
Net Demand Deposits..................
970
966
901
969
Time Deposits................................
201
202
211
173
Due from Banks............................
209
213
206
171
Due to Banks................................
1
Borrowings at Reserve Bank. . . .

M a rc h 1935

FEDERAL RESERVE AG EN T A T SAN FRANCISCO

n a tion a l ban k s in the T w e lft h D is tr ic t h ad o n ly
12.7 p ercen t o f to ta l a ssets o f all n a tion a l ban k s.
In this d istrict, th e n et e ffe c t o f th e final re­
tirem en t o f n a tion a l b a n k n o te s w ill b e to
release to th e n a tion a l ba n k s a p p ro x im a te ly
$6,000,000 n o w b e in g h eld in th e 5 p e rce n t
red e m p tio n fu n d b y the T re a s u r y , thus in cre a s­
in g m e m b e r ban k reserv es b y th at a m ou n t. In
su b sta n ce, the n a tion a l ba n k s tu rn in to the
U n ite d States T r e a s u r y th e b o n d s h eld as se cu ­
rity a g a in st th e ir n a tion a l b a n k n o te lia b ilities,
and in turn the lia b ility fo r th ese n o te s is a s­
su m ed b y th e T r e a s u r y .* T h e la tter a lso re ­
fu n d s to th e ban k s th e 5 p e rce n t re d e m p tio n
fu n d w h ich n a tion a l ba n k s are re q u ire d b y la w
to m ain tain a g a in st n o te lia b ilities. A s the
n ation al b a n k n otes are a ctu a lly taken o u t o f
circu la tio n and red e e m e d b y th e T r e a s u ry ,
T r e a s u r y cash and d e p o sits w ill be d ra w n
d o w n , th e to ta l a m o u n t u ltim a te ly b e in g equ al
to th e su m o f th e fa c e v a lu e o f th e n otes fo r
w h ich lia b ility has b een a ssu m ed . In th e lo n g
run, F ed e ra l reserv e n o te c ir cu la tio n w ill in ­
crease, as a resu lt o f the tra n sa ctio n s , b y an
a m o u n t a p p r o x im a te ly eq u iv a le n t to the retired
n a tion a l ban k o b lig a tio n s . M o r e im m ed ia te ly ,
th e e ffe ct o f th e m o v e to retire th e n ote s b y re­
d e e m in g th e b o n d s se c u rin g th e issues w ill be
to red u ce reserv e b a la n ces o f d is trict n ation al
* Som e national bank notes are secured by bonds
w hich have not been called, but w hich w ill not be
eligible as collateral for note issues after July 22,
1935.
D ifferent handling of the relatively small
am ount of notes secured b y these bonds m akes no
material difference in the general effects of retiring
the notes under the plan announced.

23

ban k s to th e e x te n t th a t th o se ba n k s e le ct to
d e p o sit fu n d s w ith the T r e a s u r y to liq u id a te
th e ir n o te lia b ility in a d v a n ce o f th e actu a l re­
d e m p tio n date fo r b o n d s h a v in g th e circu la tion
p riv ile g e .
In fo r m a tio n o n th e co n d itio n o f all T w e lfth
D is tr ic t c ity ban k s s h o w s th at th ere w a s bu t
little ch a n g e in th e v o lu m e o f th e ir tota l loan s
d u rin g the first e le v e n w e e k s o f 1935. L o a n s on
secu rities and o n real estate d eclin e d s lig h tly ,
d ecrea ses b e in g re p o rte d fro m m o s t cities.
C o m m e rcia l loa n s on th e o th e r hand, e x p a n d ed
m o d e ra te ly , a lm o st th e en tire in crea se ta k in g
p la ce at San F r a n cis c o banks. H o ld in g s o f G o v ­
ern m en t secu rities ch a n g e d little b u t th ere w a s
so m e in crea se in h o ld in g s o f secu rities w h ich
are g u a ra n teed as to in te re st and p rin cip a l b y
the U n ite d States G o v e rn m e n t. In v e stm e n ts in
all o th e r secu rities rem a in ed su b sta n tia lly u n ­
ch a n g e d . D e m a n d d e p o sits o f ban k s in crea sed
slig h tly d u rin g th is p e rio d , and tim e d e p o sits
in crea sed co n sid e ra b ly .
F o r th e m o s t part, th ese ch a n g e s d u rin g the
first elev en w e e k s o f 1935 w e re in k e e p in g w ith
ch a n g e s in co n d itio n o f all T w e lfth D is trict
m e m b e r ban ks b e tw e e n O c t o b e r 17, 1934 and
D e c e m b e r 31, 1934, fo r w h ich call date c o m ­
p lete fig u res h a ve r e ce n tly b e co m e available.
B e tw e e n th o se ca ll r e p o rt dates, d e p o sits in ­
cre a se d 181 m illio n d olla rs, th e in crea se b e in g
a b o u t e q u a lly d iv id e d b e tw e e n d em an d d e p o sits
o f g o v e r n m e n ta l a g e n cie s and sa v in g s d ep osits.
A n in crea se o f 121 m illio n d olla rs in to ta l loan s
and in v e stm e n ts re p resen ted e n tire ly g r o w t h
in s e cu rity h o ld in g s sin ce o n ly a sm all ch a n g e
w a s re c o r d e d in to ta l loan s.

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

In F e b ru a ry , in d u stria l p r o d u c tio n in crea sed
b y less than th e usual sea son a l a m o u n t, f o llo w ­
in g sh arp a d v a n ces in D e c e m b e r and Jan uary.
W h o le s a le p rice s o f m a n y le a d in g c o m m o d itie s
s h o w e d little ch a n g e in F e b r u a r y and d e clin e d
in th e ea rly p a rt o f M a rch . P r ic e s o f liv e s to ck
and m eats, h o w e v e r, a d v a n ce d fu rth e r in F e b ­
ru a ry and c o n tin u e d at r e la tiv e ly h ig h lev els
d u rin g the first th ree w e e k s o f M a rch .
P r o d u c t io n and E m p lo y m e n t. D a ily a v era g e
ou tp u t o f b a sic in d u stria l co m m o d itie s in crea sed
in F e b ru a r y b y an a m o u n t sm a ller than is usual
at th is sea son and th e F e d e ra l R e s e r v e B o a r d ’ s
in d e x , w h ic h m akes a llo w a n c e fo r sea son a l v a ri­
a tion s, d e clin e d fro m 91 p e rce n t o f th e 19231925 a v era g e in J a n u a ry to 89 p e rce n t in F e b ­
ru ary. A t steel m ills, a c tiv ity in cre a se d fu rth er
d u rin g th e ea rly p a rt o f F e b r u a r y ; later in the
m on th and in the first th ree w e e k s o f M a rch ,
h o w e v e r, a ctiv ity d e clin e d , c o n tra r y to season al




te n d e n cy . In th e a u to m o b ile in d u stry p r o d u c ­
tion co n tin u e d to in crea se and the o u tp u t in d i­
ca te d fo r th e first q u a rte r is la rg e r than in th e
c o r r e s p o n d in g p e r io d o f a n y o th e r y e a r sin ce
1929. L u m b e r p r o d u c tio n rem a in ed at a lo w
lev el. A t te x tile m ills, a c tiv ity in F e b ru a r y d e ­
clin e d so m e w h a t fr o m th e re la tiv e ly h ig h rate
o f the p r e c e d in g m o n th . In th e m ea t p a ck in g
in d u stry o u tp u t c o n tin u e d to d eclin e.
F a c to r y e m p lo y m e n t in crea sed b e tw e e n the
m id d le o f J a n u a ry and th e m id d le o f F e b ru a ry
b y m o re than th e u su al season al a m ou n t, re ­
fle ctin g su b sta n tia l in crea ses in w o r k in g fo r c e s
in the a u to m o b ile , m a ch in e ry , iron and steel,
and w e a rin g ap p a rel in d u stries and sm a ller
in crea ses in m a n y o th e r lines. A t m ea t p a ck ­
in g esta b lish m en ts, e m p lo y m e n t co n tin u e d to
d e clin e an d at t o b a c c o fa cto rie s it s h o w e d less
than the usual sea son a l g r o w th . P a y ro lls at
m a n u fa ctu rin g esta b lish m en ts a lso in creased

M O N T H L Y REVIEW OF BUSINESS CONDITIONS

24

co n s id e r a b ly in F e b ru a ry . In n o n -m a n u fa c tu r ­
in g in d u stries e m p lo y m e n t and p a y ro lls sh o w e d
little ch a n g e .
T o t a l v a lu e o f c o n s tr u c tio n c o n tra cts a w a rd ed
in th e p e rio d fr o m J a n u a ry 1 to M a rch 15, as
rep o rte d b y the F. W . D o d g e C o rp o ra tio n , w a s
sm aller than in th e c o r r e s p o n d in g p e rio d last
year, re fle ctin g a re d u c tio n in th e v o lu m e o f
p u b lic p r o je c ts . T h e v a lu e o f c o n tra cts a w a rd ed

M a r c h 1935

tin w e re c o n s id e r a b ly lo w e r than at th e b e g in ­
n in g o f F e b ru a ry , w h ile p rice s o f liv e s to ck ,
m eats, and su g a r w e re h igh er.
B a n k C redit. D u r in g the fo u r w e e k s en d ed
M a rch 20 m e m b e r b an k reserv e b a la n ces d e ­
clin e d b y $280,000,000, p rin cip a lly in c o n s e ­
q u e n ce o f an in crea se in T r e a s u r y d e p o sits w ith
F e d e ra l reserv e ban k s b u ilt up in c o n n e c tio n
w ith M a rch 15 fiscal o p e ra tio n s. E x c e s s reMILLIONS OF DOLLARS

PERCENT

INDUSTRIAL PRODUCTION

VALUE OF CONSTRUCTION CONTRACTS AWARDED

Index of industrial production, adjusted for seasonal varia*
tion (1923-1925 average=100).

Three-month moving averages of F. W. Dodge data for 37 Eastern
states, adjusted for seasonal variation. Latest figures based on
data for January and February and estimate for March.

fo r resid en tia l b u ild in g d u rin g th is p e rio d
sh o w e d a s lig h t in cre a se o v e r the lo w lev el o f
a y ea r a g o .
D is trib u tio n . D a ily a v e ra g e v o lu m e o f r e v ­
en ue fr e ig h t c a r lo a d in g s s h o w e d a sea son a l in ­
crease in F e b r u a r y an d little ch a n g e in th e first
h alf o f M a rch . D e p a r tm e n t sto re sales in crea sed
in F e b ru a ry , a m o n th w h e n th ere is u su a lly little
ch a n g e, and th e c o m b in e d to ta l fo r th e first tw o
m on th s o f th e y e a r w a s la rg e r than a y e a r a g o
b y 5 p ercen t.

serv es o f m e m b e r b a n k s d e clin e d to a b o u t
$1,950,000,000.
D e m a n d d e p o s its (n e t) o f w e e k ly re p o r tin g
m e m b e r ban k s in le a d in g citie s in cre a se d fu r ­
th er b y $380,000,000 d u rin g th e fo u r w eek s
en d ed M a rch 13. T h e b a la n ces o f o th e r ban k s
w ith r e p o r tin g ban k s in cre a se d b y $100,000,000
w h ile G o v e rn m e n t d e p o sits d e clin e d , re fle ctin g
th e w ith d ra w a l o f fu n d s fr o m d e p o s ito r y ban k s.
L o a n s and in v e stm e n ts o f re p o rtin g ban ks in ­
cre a se d b y $275,000,000. T h e r e w a s a fu rth er
BILLIONS OF DOLLARS

PERCENT

U.S. GOV'T SECUR
s

v " ALL OTHER 1S Ì ® - * -

ANS ON S E C U R .T I E S ^ ^ > e ^

1932
FACTORY EMPLOYMENT

OTHER SECURITIES
1
1933
1934

1935

MEMBER BANK CREDIT

Index of factory employment, adjusted for seasonal vari­
ation (1923-1925 average=100).

Wednesday figures for reporting member banks in 91 leading cities.
Latest figures are for March 13.

W h o le s a le C o m m o d it y P rice s . D u r in g th e
p e rio d fr o m th e b e g in n in g o f F e b ru a ry to the
m id d le o f M a rch th ere w e re w id e m o v e m e n ts in
p rices o f m a n y in d iv id u a l c o m m o d itie s , w h ile the
g en era l le v e l o f w h o le s a le p rice s, as m ea su red
b y th e B u rea u o f L a b o r S ta tis tic s’ in d ex , s h o w e d
little ch a n g e . In th e th ird w e e k o f M a rch , p rices
o f c o tt o n an d o th e r te x tile s, g ra in s o th e r than
w h ea t, c o ffe e , r u b b e r an d tires, scra p steel, and

g r o w t h o f $85,000,000 in h o ld in g s o f d ire ct o b li­
g a tio n s o f the U n ite d S tates G o v e r n m e n t and
a sm a ller in crea se in o b lig a tio n s g u a ra n te e d b y
the G o v e rn m e n t. L o a n s to b r o k e rs an d d ealers
in secu rities in crea sed b y $130,000,000, w h ile
o th e r loa n s s h o w e d little ch a n g e .
Y ie ld s on U n ite d S tates G o v e r n m e n t o b lig a ­
tio n s d e clin e d s lig h tly fu rth e r, and o p e n -m a rk e t
m o n e y rates c o n tin u e d at a lo w lev el.