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MONTHLY REVIEW OF B U S IN E S S C O N D IT IO N S Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. XX San Francisco, California, March 20,1936 T W E L F T H V o lu m e T w e lfth ary of in d u stria l D istric t th a n u su a l. in F E D E R A L w as J a n u a ry R e ta il tra d e R E S E R V E p ro d u c tio n slig h tly lo w e r w h ereas little in c reased , in in th e F e b ru ch an g e w h ile f r e ig h t tra ffic d e c lin e d , a f te r a llo w a n c e is D IS T R IC T fro m th e w eek C O N D IT IO N S d istric t re su lte d No. 3 b y th e fro m T re a su ry u n u su a lly d u rin g la rg e th a t cash p a y m e n ts f o r G o v e r n m e n t s e c u ritie s is s u e d in m id - ra ilw a y M arch fo r sea m e et an d fro m th e se in c o m e d em an d s, ta x c o llectio n s. m e m b e r b an k s T o red u ced so n al facto rs. N u m b e r of w o rk e rs e m p lo y e d b y th e ir b a la n c e s a t th e R e se rv e B a n k s u b sta n tia lly in d u s try th e an d w as m id -Ja n u ary , ta k e s sam e in a lth o u g h m id -F e b ru a ry a sm all rise as in o rd in a rily co n trast w h o le , th is sin c e fro m w ith v alu e of d istric t fig u re U n ite d b u ild in g in Ju ly 1931. la rg e r b u ild in g th e rose p e rm its fo r w ere n ew T h e an d in to as a c itie s th e of h ig h e st in c rease re su lte d n o n re sid e n tia l b u ild re p a ir w o rk ; re sid e n tia l th e sam e co n tra c t w o rk s w ere m u c h S ta te s p e rm its F e b ru a ry p e rm its in g s a n d a lte ra tio n A lth o u g h as in a w ard s s m a lle r in Jan u ary . fo r p u b lic F e b ru a ry th a n th e n e a r r e c o rd to ta l in J a n u a r y , c o n s tr u c tio n w o r k T h e se a so n a lly a d ju ste d d ecreased F e b ru a ry b u t in d e x of lu m b e r p ro so m e w h a t re m a in e d fro m clo se Ja n u a ry to th e to h ig h e st b ecau se in g sh a rp ly , a fro m th e u n u su a lly P e tro le u m re su lt of o u tp u t v o lu n ta ry la rg e d ecreased tio n d e c lin e d . d ecreases d em an d lo w e r o n M arch of b an k d e p o sits T w e lfth F ed eral d o lla rs th is d u rin g y ear, in an d of b y th e u su al sam e seaso nal m o v e m e n t th e th ro u g h In of th e of th e b a n k in g P a n a m a reserv es w eek s b y ad d itio n s w ere th re e of fu n d s la rg e n et excess w eek en d in g becau se th e th e packs an d w a te r rose sh a rp ly 18. a M arc h in th e in th a t m o re m o st of 18, d is tr ic t to a c o n sid te n d e d g rain U n ite d S ta te s 1935 su b sta n d istric t p erio d . th a n in T h o se offset b y c o lle c tio n s W ith d ra w a l of in a th e fu n d s d u rin g p erio d aid of se ed in g of 1, t h e to an d o r T h e k e tin g s has rep o rted p la n t fie ld v o lu m e a of th a t early w eath er, in re C a li w e a th e r in E x istin g sn o w a d e q u a te an d th e irri s u m m e r in d istric t. A s D e p a rtm e n t d istric t farm ers la rg e r th a n of sto rm y d ry S ta te s slig h tly crops an d d e c lin e d been in se c tio n s a w ere assu re U n ite d o v er d u rin g fo rag e p a rtic u la rly sp rin g p ay w as of in acreag e to h a rv ested in 1934. F e b ru a ry y e a r th e M arch 1935. D istric t w a rm m o istu re d u rin g of o v er of th e m illio n c o n tin u e d ran g e ra p id ly , th e so il A g ric u ltu re recen t th is of d ay s p erio d T w e lfth lo n g a g ric u ltu ra l M arch o th e r d isb u rse m e n ts w ere as carg o . T u rn o v e r h ig h p a y m e n ts to first th re e w e e k s o f M a rc h . g a tio n a ffe c te d of w ith sh o w of T re a su ry M arch fo rn ia , d id ea rlie r, w h ile p ercen t c u ltiv a tio n , p ro g ressed th e tra ffic c o lle c tio n s w eek s b u t b y n o t th a n of Ja n u ary . th is In te rc o a sta l en d in g T re a su ry ex ceed ed rail C an al o p e ra tio n s T re asu ry . first b y ex te n t in in c rease la rg e ly lu m b e r fo u r w eek s as n o t ex p a n sio n . in c reased g re a te r th e d id lu m b e r erab ly tia lly F e b ru a ry a m o u n t, c u sto m a ry re su lt in c a rlo a d in g s 43 sn o w fa ll th e ta rd e d F re ig h t Jan u ary . a lm o st 24 tw e n ty of c o rre sp o n d in g rain p a rt first a p p a re l, a n d f u r n itu r e s to re s in th is d is tric t w a s a b o u t h ig h e st 18, f o llo w m o d e ra te ly u n u su a lly in c re a se th e H e a v y la rg e th e an g ro w th of th e in a m o n th D istric t in c o m e ta x S o il sa le s w ere G o v e rn m e n t to ta le d an d av erag e in v e stm e n ts to early of m id -M a rch th is p erio d . F eb ru ary . d a ily rose sin c e w as crops, of th e ir h o ld in g s of d e p o sits 18 th a n d ep a rtm en t, V a lu e re su lt tim e d e p o s its w e re s o m e w h a t la rg e r. c u rta ilm e n t. S la u g h te r in c re a s e d s lig h tly , w h ile flo u r p r o d u c in c re a se d a m e m b e r b an k s ste a d y A d ju ste d Agriculture d e c lin e d fro m le v e l th is y e a r in th e w e e k o f M a r c h of v o lu m e . of se c u ritie s, of re p o rtin g m e n ts cem en t su m s co rresp o n d en ts. T r e a s u r y fin a n c in g , to ta l lo a n s a n d p o in t re c o rd e d sin c e th e s u m m e r of 1930. O u tp u t J a n u a ry c o n sid e rab le e a stern G o v ern m en t o n p r o je c ts o f t h a t c la s s c o n tin u e d a t a h ig h le v el. d u c tio n d rew w ith L a rg e ly p la c e . In also d e p o sits th e v alu e fro m case u su a lly m a rk e tin g in of a g ric u ltu ra l Ja n u a ry m o st m a rk s o th e r th e a c tiv ity . to lo w m a r F e b ru a ry recen t p o in t F a rm a g e d a b o u t th e s a m e a s in F e b r u a r y p ric e s as y ears. of th e av e r 1935, w h ile v o lu m e of a g ric u ltu ra l p ro d u cts m a rk e te d m a rk e ts F a ll-so w n w h e a t is in P a c ific N o rth w e st an d at th is tim e in m a rk e tin g cu rred fav o r ea rly e x p o rts of C itru s to in c e iv e d a an d 1 w e ll p erce n t of y ear, sm a lle r th a n in th e th e y e a r th a n O ra n g e T h e fo u r be ab o u t 25 m o re in to 7 p erce n t of th e p ro d u c tio n re stric te d to lo w er 1934-1935 of le m o n s C a lifo rn ia of of th e w ere an d im p o rt d u tie s p ra c tic a lly fo reig n g ro w n m e stic m a rk e ts. D e m a n d n o rm al e x c e lle n t d u rin g d u ced from th e sto c k s w ere m o n th . ab o u t so m e w h a t 1 c o n tin u e d w e ig h te d of to o ran g es C a lifo rn ia F e b ru a ry , 2 ,0 3 6 ,0 0 0 d u rin g M arch an d fro m d o of b ag s A t th e p ast th a n ad v an ce av erag e v a rie tie s g ro w n h u n d re d po u n d s. an d p ric e in th a t fiv e as of th e th is fig u re , a y ea r av erag e on M arch elev en w as T h e th e $ 5 .2 4 per av erag e a y ea r ag o an d h i g h e r t h a n a t a n y t i m e d u r i n g t h e p a s t fiv e y e a r s . season w ere an d Carlot S h ip m en ts Apples and P e a r s . C itrus F ru its . . . . V e g e t a b l e s ............ Exports W h e at (bu.) . . . . B arley (bu.) . . . . Receipts* C a t t l e ...................... H o g s ........................ S h e e p ...................... E g g s (cases) . .. B u t t e r ( lb s . ) . . . . W h e a t (carlots) . . Barley (c a r lo ts ) . . Storage H oldings* ( e n d of t h e m o n t h ) W h e a t (bu.) . . . . Beans (bags) . . . . E g g s (cases) . . . . B u tt e r (lbs.) . . . . f--------F e b r u a r y -------- \ 1936 1935 4,505 3,971 4,582 6,316 8,740 8, 970 erab le la m b s 833 165,291 50,161 7,240,447 2,789,158 3,549,661 82,145 147,860 206,7 82 173,886 5, 086,110 2, 656 701 72,140 149,371 181,111 156,219 4,641,399 2,739 475 180,039 30 8,246 423 ,854 343,529 10,485,080 49,391 6,895 170,376 310,722 423,765 315,157 9,366,359 37,227 in toi/; January 5,827,000 2,0 36,000 * 230 ,006 1,339,000 *At principal district markets. 2,000 6,888 105C > r u »W February January 3,953,000 2, 913,000 1,562,000 1,927,000 75,660 ’ 355,660 ea rly areas of sto c k n o w e x p e c te d th a t m a rk e t in in la rg e r th a n are as ea rly as m a d e as n u m b e r oí su rv ey th e m a rk e te d la m b fro m e a rly la m b in g A riz o n a cro p is an d C a lifo r e x p e c te d la st y e a r. In la rg e r co n tra st w ith are In th e la st L o sses rep o rted th a n in th e se re c e n t y ears. feed in g . th a t reg io n to o th e r season, to c o n sid of e a rly h av e recen t w h en be P a c ific been y ears. la m b b u y in g w a s v e ry a c tiv e , c o n tra c tin g fo r e a rly la m b s h as b een an d slo w rep o rts 1. p aid T h e U ta h G ro w ers a la rg e po sed in h av e b een fo r y ear no C a lifo rn ia g ro w ers m a rk e t an d in co n u p la m b s slig h tly o r c o n tin u e d A riz o n a , p o rtio n s abo v e th o se of th e w ere b e g in n in g th e at to for u n d er re c e iv e d Id ah o, on h ave ra n g in g la st y ear. c o n sig n m e n t clip w h ic h w a s y e a r w h en co n sid e ra b ly of th e d u rin g 1936 c lip p ric e s o r so ld p a rt of th e ir sp rin g o f la te r in a c tiv e C a lifo rn ia , c o n tra c te d la st y e a r h e ld q u o ta tio n s th e p aid d istric t th is p ra c tic a lly clo sed d e liv e ry la rg e so ld th a t a y ear ago. w ool F eb ru ary , been b een P ric e s im m e d ia te th o se th ro u g h o u t th e in d icate h ad m a rk e d ly r February 5,4 97,000 1,562,000 fav o rab le th e so m e w h a t an d 339,000 to g rass-b eef th a t be su p p le m e n ta l M arch t— Se as o n to D a t e — \ 1936 1935 35,958 29,840 23,037 19,134 41,342 43,237 to o n ly g o o d liv e s to c k in d icates C a ttle w ith in it is fo r b ecau se h o w ev er, p ric e . 1 w ere liv e n o rth e rn N o rth w e s t, sev ere w e a th e r n e c e ssita te d tra c ts Agricultural Marketing Activity— in W e a th e r c o n d itio n s d u rin g th e m o d e ra te ly 18 1 of in w e a th e r b u t read y an im als e a rlier, on be In F ra n p ercen t F e b ru a ry ran g e c o n d itio n , 9 su p p lie s, th e A riz o n a , S an feed in g M arch In m o v ed ea rlie r. ran g es w in te r on eg g s p ercen t se a so n a lly . dozen, m o d e ra te F ed eral J a n u a ry n ia , p rin c ip a l th e in n o t sto ra g e p ric e s on s ta te s w ill b e la r g e r th a n re b ags sto c k s B ean p o in t p ric e w a s 8 p e rc e n t h ig h e r th a n w ere 1 ,5 6 2 ,0 0 0 y ears. C a lifo rn ia A t c o n tin u e d sto ck s to sam e sm a lle r th e b ean s an d an d an d w ill u su a l. an d 11 T h e se y e a r F eed c o n d itio n . C a lifo rn ia p er a d u rin g severe lo sses g rass-fat for h ea v y b u t le m o n s e x c lu d e 1935. d ate d istric t th e im p ro v in g stric tio n s w as m o re an d s u p p le m e n ta l a d e q u a te su rv iv e d th e y re Ja n u a ry . c h a n n e ls, ra th e r th a n c e n ts th a t co v e rin g . in t h a t S t a t e c o m p e te Q u a ra n tin e cu s b u tte r N o . 1 e g g s in n ecessary sn o w crop. o ran g e 1954 on w as w ith F lo rid a in of slig h tly J a n u a ry F e b ru a ry fo r th a n b u t N av el o ran g es g ro w n th e C o ast is of ab o u t 5 p ercen t re c e iv e d in U . S. e x tra so ld p arts w as th a n su p p ly s to ra g e , a n d p ric e s d e c lin e d 5 p e rc e n t sm a lle r th a n 43 as first h a lf o f M a rc h . C o n sid e ra b le ago. w ere in m id -M a rch cisco g ro w ers sm a lle r ad v an ce th a n th a n sto c k to P a c ific M o v e m e n t of b u tte r o u t d ire c tly in to c o n s u m p tio n lo w e r y e a r th e F e b ru a ry p ric e s sh ip m e n ts w e re 20 p e r is in le m o n a an at F e b ru a ry , m a rk e t b y d u rin g o ran g e fo u r also in D istric t m a rk e ts seaso n of re c e iv e d d u rin g in p ric e s d u r in g th e m o n th . Q u o ta t io n s c h a n g e d F ro m th e m o n th s S ta te s ac co m p an ied m o n th s co m m ercial U n ite d N av el th ro u g h w as re d u c tio n la st. an d th o se in c o m e first to th is d u rin g o n ly b o th th a n 1 re tu rn s an d of re b u tte r in t h a t m o n th . sto ra g e T h e co n th o se N o v em b e r p ercen t w ere oc of of d e c lin e d to m a ry little ab o v e e s tim a te d le m o n s p e rc e n t la rg e r. season. is M arch w h ile cen t fro m 50 w h e a t F e b ru a ry P ro d u c tio n th is h ig h e r u n d e r rev iew in p ric e s to in c rease P h ilip p in e s. at av e ra g ed S h ip m e n ts m illin g d u rin g le m o n s th e as a re s u lt of su b sid iz e d th e ago. in c o n d itio n s S o m e m a rk e te d sm a lle r N o v e m b e r y ie ld s. y e a r ’s (h a rv e ste d p erce n t la st to c o n d itio n so il m o is tu r e M arch y e a r g o o d g o o d la st flo u r se ll o ran g es p ric e s of fru its tin u e d M ay ) V o lu m e w as larg er. 8 March 193É MONTHLY REVIEW OF BUSINESS CONDITIONS 18 d o m e stic h ig h e r d is w ool th a n at season. Industry V o lu m e T w e lfth of in d u stria l p ro d u c tio n D istric t w a s slig h tly s m a lle r in in th e F eb ru - FEDERAL RESERVE AGENT AT SAN FRANCISCO March 1936 a ry th a n w as u n ch an g ed , u su a lly in Jan u ary . o ccu rred B u ild in g of th e In d u stria l w h ereas in p e rm its d istric t d u rin g in J a n u a r y sin ce Ju ly th e d istric t, p e rm its h ig h e st fig u re in c re a s e in d ecrease fle c tin g y ears. ta k e n u n d er 1935 of it w ere of th e to ta le d reg io n th e U n ite d in an y sm a lle r 4 .3 in c itie s as a of d o lla rs, 1930. c o n trast S ta te s sev ere m o n th m illio n O c to b e r w as v alu ed w h o le , w e ath er. T h e a re lo c al h as sid e ra b le p art eral th e o rd ers tiv e ly in g s la rg e co m m ercial an d in p arts lo c a te d R esid e n tia l Ja n u a ry d iffe re n t b u ild in g le v e l w h ile c o n tin u e d w as several in d u stria l of th e b u ild d istric t. m a in ta in e d a lte ra tio n an d rela at th e rep air w o rk to in c re a se . end of th e m o n th as a re su lt c u rta ile d N ew of m id -W e st. are in O u tp u t h ad d u rin g b y in g is n o w y ears, in of su ch co m p a riso n 1929. In th e m o st in sin g le -fa m ily p o rte d be lo w h o use v a c a n c ie s y ears. U n ite d w ag e an d S ta te s to is of th e p ercen t o ccu rred in d e x e s D e p a rtm e n t P a c ific m o n th s. C o ast A lth o u g h of lo w in in 1922 n o w re a p a rtm e n t th e p a s t tw o c o m p ile d b y L ab o r, ren ts of u p w a rd in c itie s th e se d u rin g fig u re s do n o t th e O u tp u t in to P u b lic ary o ver e n a b le w o rk s av erag ed p ared w ith 9 4 a ch an g es p ro je c ts in m illio n in are alm o st w as equal so m e 50 in d e x av e r ex p e c te d to sin c e p erce n t in in th e th e to la rg e r o u tp u t in sh ip a c c u m u la te P a c ific G ran d req u ire of la st ac co m p an ied p ro p o rtio n s te n d e n c y ev id en t w o rk u p o n o n ly E x p a n sio n la tte r p a rt of 1935 w a s of alth o u g h is ab o u t 1935. N o rth C o u le e D am a d d itio n a l la rg e in 29,290 42,388 O th e r I n d u s t r iC s f. 646 co m C h an g es in in 1,803 44,525 ( + 5 .0 ) of on 3 37 51 av erag e w a y 5,282 11,925 P u b lic U tilitie s . . F e b ru co rresp o n d u n d e r G lass P r o d u c ts . 63 6,238 ( + 18.1) L u m b e r and W o o d M a n u fa c tu r e s . . 109 12 820 ( + 7.5 ) T e x tile s ................... 15 1,559 — 13.5) ( C lo th in g , M illin e ry , w ith la rg e p arts M is c e lla n e o u s . . . . 10,038 65,635 ( + 3 .0 ) 63,748 50 12,428 ( — .6 ) 12,498 348 37,036 ( + 6 .2 ) 34,883 re n ta ls. w eek ly , p a rtic u la rly No. 28,802 ( — 1.7) su f w eek ly - C a l if o r n iia--------- > t----O re g on N o . of N o . of <— E m p lo y e e s •—<» N o . /— E m p lo y e e s — » of Feb. Feb. of Feb. Feb. I n d u s tr ie s Firm s 1936 1935 Firm s 1936 1935 A ll I n d u s tr ie s* . . . 1,300 137,864 134,584 108 18,027 15,821 (+2.4) (+ 1 3 . 9 ) S to n e , C la y , and f 10,382 ( + 3.4 ) su p p ly to ad v an ce Employment— 142 fo r a w ard ed n o t n o w d ecreased 1923-1925 offset 275 d em an d Jan u ary . do co n tra c ts, to d o lla rs reco rd d o lla rs as rela tio n c o n tra c ts c o n stru c tio n such in o w n ers n e a r m illio n a c tu a l rep o rts in c re a se d o rd ers ad ju ste d o ccu rred an d L a u n d e r in g . so m e c o n firm a tio n has th e h ad F o o d , B e v e ra g e s , and T o b a c c o . . . th a t fic ie n tly w as F e b ru a ry rise p ro je c t F e b ru a ry w h ic h rep re s e n t all d w e llin g s , th e y g iv e h o uses n ew in w as m ills. p la n ts T h e recen t to n o n sta tistic a l a in rise in v e n to rie s d istric t are e a rn e rs' d w e llin g s h a v e tu rn e d m a jo r M arch b o th ce m en t F eb ru ary . of fro m 120 p e rc e n t of th e w e st, w h e re in f o u r s till fro m h o u ses re d u c tio n s h av e A c c o rd in g tim e p erio d p arts v a c a n c ie s to at an y c o n stru c tio n w ith in re ex p a n sio n h alf sh ip m e n ts d istric t d u rin g sh arp m e n ts, ste a d ily in c reases in sh o rta g e s sh arp first th e lu m b e r th a t class of b u ild m o re a c tiv e th a n v alu e th ro u g h in c reased of th e w h ic h in p a rt 87 d u rin g has w e a th e r lo w , w ith th e p a rtly to b y A lth o u g h d u rin g h o w ev er, sev ere th e th a n d e c lin e th a n b u ild in g re c e iv e d A a t h ig h e r a g e in J a n u a r y , a fiv e -y e a r h ig h , b u t th e Ju n e. a y ear. p ercen t o rd ers U n fille d an d of fin ish e d reached th e R e sid e n tia l la rg e M ill in v e n to rie s fo r lu m b e r an d sh a rp ly 40 siz e s. F e d re m a in e d 1930. e sp e c ia lly so m e fo r 1933 F e b ru a ry m o d e ra te ly , s till c o m p a r a tiv e ly co n u n fin ish e d . sin ce u n u su a lly no n e a p ro je c ts ac tiv ity , acco m p an ied fo r n ea rly w ere b u ild in g p ro d u c tio n V A L U E O F R E S ID E N T IA L B U IL D IN G P E R M ITS Tw e l f th D is tr ic t B a s e d u p o n figures for 11 cities. A n n u a l in de xes 1927 to 1932; m o nt h ly in de xes 1933 to date. (1923-1925 ave ra ge = 1 00 .) u n d er re la tiv e ly d ecreased p o rte d PER CEN T m ad e le v e ls u n d e r a d d itio n , w ere still be p ra c tic a lly In on is F e d P u b lic a p p ro p ria tio n s w o rk c o n tin u e d m o n th fo r an d th e of th e h ig h e st a y e a r e a rlier. aw ard s of ap p ro p ria tio n s m its, in c lu d e d sta rte d O u tp u t of lu m b e r d u rin g n ear to w o rk to c o m p le te d . allo tm e n ts in c re a s e c a m e p r in c ip a lly in n o n r e s id e n tia l p e r w h ic h h alf of th e b een been w h ic h A c c o rd in g A d m in istra tio n F ed eral em erg en cy has T h e w ith D istric t. W o r k s , le ss th a n of sin c e u n u su a lly p ast T w e lfth E m e rg e n c y at th is in eral h as a m o u n t 22 p e rc e n t la rg e r 70 th e of th e of h ig h e r th a n In e m p lo y m e n t in c re a se in 2 0 p rin c ip a l c itie s F e b ru a ry an d 1931. sm all F e b ru a ry issu ed 9 / J2 m illio n d o lla rs , a n th a n a 19 W h o le s a le and 188 ( + 72.5) 109 9,781 ( + 2 0 .2 ) 8 1,796 ( + 3 .6 ) 8,136 226 (+ 4 .6 ) 216 31 1,361 ( — 0 .4 ) 1,366 22 4,675 ( + 9 .7 ) 4,260 7$ 1,734 * P u b lic u tilities, w h o le s a le and retail fig u res n o t in c lu d e d in this total. $ L a u n d e r in g o n ly , f In c lu d e s the f o llo w in g in d u s tr ie s : M eta ls, m a ch in e ry , and c o n v e y a n c e s ; le a th e r an d r u b b e r g o o d s ; o ils and p a in t s ; p r in tin g an d p a p e r g o o d s . Figures in parentheses indicate percentage change? fromFebruary 1935. 20 MONTHLY REVIEW OF BUSINESS CONDITIONS su p p lie s of c e m e n t d u rin g th e n e x t fe w R e fle c tin g th e o p e ra tio n ta ilm e n t p la n F e b ru a ry 1, d a i l y w as red u ced w eek th e M arch of 5 3 7 ,0 0 0 th e b arrels d a ily , W h ile an d p ric e s p aid b y m a jo r th e in o u tp u t w as a llo w a b le s re d u c tio n s m a jo r fie ld s c o n f o r m e d w ith o il b arrels p ro ra tio n in m o st c o m p a n ie s fo r c e n ts an G a so lin e u s u a l in p a rt in v e n to rie s in re d u c tio n p la c e on T h e in of L o s c e n ts J a n u a ry up p er h ad m issio n , la rg est to c o m p le te d th e S ta te o u tp u t sin c e season. In c o n d itio n in 3, a 3 g en eral c e n ts per area, w h e re h ad ta k e n 9. b een A c c o rd in g is g allo n sa rd in e c a n n in g se a so n fo rn ia to A n g e le s th a n F ish to ta le d th e an d pack of C a lifo rn ia C a li G am e C o m cases, th e th e 1929-1930 w a te rs, w h ere s a rd in e o p e ra tio n s u s u a lly c o n tin u e u n til A p ril, fish in g w as re stric te d b y p o o r w e a th e r co n d i tio n s, a n d a sm a ll c a tc h w a s re p o rte d . L a n d in g s o f tu n a w e r e a lso s m a ll in d em an d fo r re p o rted to h a v e b o th s ta n tia lly sin c e th e tio n s h av e te n d e d C a n n in g M arch . of T h e sam e M arch so m e w h a t an d ac tiv e tu n a first o f th is y e a r, a n d as y ea r is la st y ear. 1, 1936 lo w e r th a n a p ercen t 1935. creased q u o ta ea rly e stim a te d to in be C a rry o v e r in v e n w ere y ear rep o rted to be e a rlie r. as th e th e d a ily fro m ap p a re l, th e sam e in J a n u a r y P a c ific so m e w h a t ab o u t an d av erag e in N o rth w e st, J a n u a ry in w ere F e b ru sa le s an d d e w ere no R E T A I L T R A D E —T w el f th D is tr ic t P er c e n t a g e ch an ges in v al ue of sales an d s to ck s -1936 c o m p a r e d w ith 1935STOCKS • N E T S A L E S ---------- \ Ja n . 1 to en d February February of F e b r u a r y r D e p a rtm e n t S to r e s . . L o s A n g e le s .......... O th e r S o. C a lifo rn ia O a k la n d ................... S a n F r a n c is c o . . . . B a y R e g i o n ............ C en tral C a lifo r n ia . P o r t l a n d ! ................. 12.1 12.3 14.9 14.5 15.2 15.0 8.8 9.1 5.1 — 0.8 7.6 10.7 18.6 40.2 15.9 S p o k a n e ................... T a c o m a f ................... S a lt L a k e C i t y . . . . A p p a r e l S t o r e s .......... F u rn itu re S to r e s . . . 4 .6 8.3 8.1 4.0 0.7 1.4 6.9 3.7 2.2 17.3 15.7 — 9.2 16.0 13.8 6.6 9.3 10.7 8.6 9.9 9.4 9.3 5.1 11.3 5.9 1.1 9.4 11.1 16.7 36.8 13.2 ( 81) 6) ( 9) ( 5) ( 8) ( ( 18) 6) ( 9) ( 4) ( 5) ( 7) ( 4) ( ( 41) ( 30 ) (1 5 2 ) ( 58) 6) ( 7) ( 5) ( ( 7) ( 16) 6) ( 8) ( 4) ( ( 5) 5) ( 4) ( ( 25) ( 23) (1 0 6 ) fln c lu d e 's five a p p a re l s to re s e a ch in P o r t la n d a n d T a c o m a w h ic h are n o t in clu d e d in d is tric t d e p a rtm e n t s to r e to ta l. F ig u r e s in p a re n th e se s in d ica te n u m b e r o f s tores r e p o r tin g . F e b r u a r y 1936 had onei m o r e tr a d in g d a y th a n F e b r u a r y 1935. la rg e r th a n in c re a s e d th e y e a r e a rlie r. o v er C o lle c tio n s c o n tin u e d of a b o th p erio d s. to sh o w In th e on C a lifo rn ia , m o n th a c c o u n ts im p ro v e m e n t A so n a lly as in Ja n u a ry , co n sid e ra b le an d rise on m o st in d e x a th is d e c lin e d 1923-1925 th e p arts s a m e in d a ily av e ra g e is c u s t o m a r y c o n se q u e n tly ad ju sted p e rc e n t of th e d u rin g b a n k ’s fro m 85 sea to 79 av e ra g e, o ffse ttin g in c re a se s in th e tw o p r e c e d in g m o n th s . R ail sh ip m e n ts o f lu m b e r d id n o t in c re a s e d u rin g a y ea r re c e iv a b le in D is tric t fre ig h t c a rlo a d in g s w e re b a sis. sa le s an d d istric t. F e b ru a ry ary Industry — F e b ru of th is y e a r, p a rtly b e c a u se of s e ttle m e n t of strik e of m a rin e w o rk ers w h ic h h ad d iv e rte d w a te r tra ffic to ra ilr o a d s in J a n u a r y . O t h e r b u lk I n d e x e s o f daily ave rage p ro d u ct io n, adj ust ed for se asonal vari ati on (1923-1925 daily av era ge = 10 0 ) f---------1936-1935,-----1935-1934------x Feb. Jan. Dec. Nov. Feb. Jan. Dec. G eneral 67 171 54 154 50 154 50 149 72 157 93 112 110 99 65 156 109 83 138 109 60 127 93 53 132 97 52 120 102 56 132 101 46 120 92 81 87 118 68 C a rlo a d in g s — I n d u s t r ia l. 63 77 E le c t r ic P w r . P r o d u c t io n 179H 18011 172 lo a d in g s 75 152 101 120 112 1ÓÒ1Ì 98 7111 14911 91 IT 87 M inerals 89 103 63 82 103 70 68 102 67 68 75 50 65 76 48 50 73 60 53 T o t a l .................................... 88 B u ild in g P e r m its — V a lu e L a r g e r C i t i e s ............... 28 50 S m aller C ities ............ E n g in e e r in g C o n tr a c ts A w a r d e d — V aluei T o t a l ............................. 167 E x c lu d in g B u ild in g s 374 90 69 58 44 54 46 25 44 24 38 22 37 17 21 13 20 14 20 118 217 99 173 80 176 118 211 84 154 P e tr o le u m ( C a l i fo r n i a ) t L ea d ( U n it e d S ta te s ) $. S ilv e r ( U n it e d S t a t e s ) $ . Building a n d C o n s t r u c t i o n # 182 337 an d m e rc h a n d ise an d m isc e lla n e o u s Distribution and Trade— ,--------- 1936-1935----------\ ,-----1935-1934----F e b . J a n . D ec . N o v . F e b . J a n . D e c . I n d e x e s a d ju st ed fo r seaso nal var ia ti on M anufactures L u m b e r ................................ R efin e d M in e ra l O i l s f . . F lo u r .................................... C e m e n t .............. . .............. W o o l C o n s u m p t io n ! . . . S la u g h te r o f L iv e s t o c k . ab o v e In F eb ru ary , co m m en ced th is 11 ary is u p w ard . crop to rie s on sard in e s A n c a rry o v e r sto ck s s u b sp in a c h a b o u t th e F eb ru ary . can n ed red u ced F e b ru a ry d e p a rtm e n t, w ere m id -F e b ru ary . 1 ,8 8 3 ,1 0 1 reco rd so u th e rn in n o r th e r n b y of d u rin g v alu e b arrel p e r b arrel. m o re M arch p ric e s th e 2 on p er c e n ts in c reased w as, g a so lin e ex cept 20 of 90 R e fle c tin g th is le a st th e re re d u c tio n of q u o ta tio n F e b ru ary . a t g a llo n , a av e ra g e sa le s sto res re- ad v an ced b ase av erag e fu rn itu re th e fig u re s se t, th o s e fie ld s w e r e th e an d of fin a b le c r u d e o ils c o m in g f r o m from D a ily on cru d e d u rin g 5 6 7 ,0 0 0 14. still in e x c e s s o f c o m b in e d of Trade c u r effe c tiv e b arrels 1 to m o n th s. v o lu n ta ry o u tp u t 6 7 5 ,0 0 0 F e b ru a ry e n d in g a b ecam e av erag e fro m e n d in g w eek w h ic h of March 1936 C a rlo a d in g s t . . 79 M e r c h a n d i s e ................. . . 89 In t e r c o a s ta l T r a d e . . 75 W e s t b o u n d ................... . , 96 E a s tb o u n d ................... . . 69 R e ta il T r a d e A u t o m o b ile S a le s î T o t a l .......................... P a s s e n g e r ................. C o m m e r c ia l ............ D e p a r tm e n t Storei Sale s$ ........................ . . 85 S t o c k s § ...................... . . 65 C o lle c t io n s # r~ ~ R e g u l a r ................. 48.1 In s ta llm e n t ............ 18.0 (1923-1925 a v e r a g e = 100) 74 70 80 85 85 89 92 97 95 85 69 84 65 99 54 69 89 65 66 95 57 65 81 61 68 79 63 77 81 77 106 103 155 208 200 236 156 153 188 104 97 229 69 65 128 73 66 142 84 65 88 64 91 64 80 62 79 61 83 60 49.0 18.4 48.8 17.6 49.9 18.1 45.3 48.0 16.8 18.7 47. 17., tNot adjusted for seasonal variation, tPrepared by Board of Governors of the Federal Reserve System. #Indexes are for JDaily average. §At end of month. #Percent of collections during month to amount outstanding at first of month. three months ending with the month indicated, Preliminary. March 1936 FEDERAL RESERVE AGENT AT SAN FRANCISCO s h ip m e n ts a m o u n t. in ad v an ced T o ta l F e b ru a ry b y lo a d in g s 1936 th a n a b o u t w ere in th e 6 seasonal p ercen t F e b ru a ry la rg e r 1935. 25.1 11.2 1.9 2.9 10.5 — 3.9 — 11.5 — 0.6 28.6 — 11.2 — 2.7 le v el fo r 1936, re fle c tin g la rg e ly th o se G o v ern m en t C u m u l at i v e 1936 co m p ar ed with 1935 30.5 10.0 15.4 2.0 28.9 — 7.5 4.7 21.7 2.7 16.9 13.6 41.3 7.5 10.5 0.9 33.0 — 1.9 6.7 25.9 3.1 18.5 16.0 19 an d In te rc o a sta l w a te r-b o rn e to n n a g e a g g re g a te d th a n to n s in in F eb ru ary , J a n u a ry 1936 th a t of F e b ru a ry 1935. a ry re su lte d fro m of lu m b e r fro m m o re th a n O th e r also in in g e a stb o u n d p la te sa te d th e classes an 8 2 ,0 0 0 to n s above ad v an ce o v er J a n u sin c e carg o , C arg o S e p te m b e r e x c e p tin g m o v in g E a st d ecreased A re d u c tio n sh ip m e n ts by la rg e r th e P a c ific C o a st, w h ic h to ta le d F eb ru ary . tin T h e to n s a s h a r p in c re a s e in s h ip m e n ts an y m o n th in c reased . C o ast fro m an d 3 2 ,0 0 0 w as in c re a s e in p e tro le u m , to th e P a c ific m o d e ra te ly in iro n , o n ly th e 1934. d u r ste e l, p a rtly an d co m p en a g g re g a te of o th e r 16 m illio n th re e d o w n w a rd an d p ric e s ea rly m o v e m e n t w as M arch . in w h o le sa le reco rd ed d u rin g L o w e r p ric e s W h o le sa le tric t p ric e s c o m m o d itie s F e b ru a ry an d q u o ta tio n s p ric e s d e c lin e d . te n d e d m e stic an d th e zin c p ro d T w e lfth C an n ed w h ile can n ed m o st d rie d b u t w ere raisin for p ric e s b o th ste a d y p ear fru its ad v an ced ex p o rt d u rin g D is d u rin g M arch. P ric e s of an d th is d o p erio d , s p o t p ric e o f fo re ig n s ilv e r re m a in e d c e n ts p er q u o ta tio n s ounce, N e w ad v an ced Y ork. slig h tly . th e fig u re d ia te d e liv e ry . p ric e s an d th a t p rev a ile d ad v an ced on 20 c e n ts an d th a t p e r cane ru b b er, sugar. L ead T h e at an d p ric e fo r im m e re d u c tio n , h u n d re d p o u n d s raw p o u n d s, re sp e c tiv e ly , fo r Q u o ta tio n s m a te ria ls fo r tw o tie s w ere to ta l fo r coffee im p o rta n t e ra te a d v a n c e re c o rd e d sin ce th e first of th e y e a r. The Credit Situation T o ta l lo a n s an d in v e stm e n ts of T w e lfth M arch p erio d in c rease n e g lig ib le lo a n s d u rin g b ein g in d u rin g in c re a se d th e th e first m o re w eek th a n th e en d in g fo u r w eeks m o d e ra te ly . b u t L o an s to b r o k e r s a n d d e a le rs in s e c u ritie s o u ts id e o f N e w Y o rk C ity d o lla rs sh o w ed b etw e en on d u rin g real th is n et e sta te alm o st p eak recorded as b u t T h e th e first d e p o sits in net lo a n s w eek (la rg e ly re a c h in g of 17 a th is y ear. m illio n d o lla rs, w h ile 19 m illio n d o lla rs. w as m a rk ed th e rate of tu rn o v e r th e 18. ch an g e p o st-d ep ressio n also in m illio n d e p o s its in r e p o r t in g m e m b e r red u ced p erio d th e 6 M arch little “o th e r” as in of an d m o d e ra te ly , tim e d e p o sits in c re a se d flu c tu a tio n s 19 h ig h A d ju ste d d e m a n d w ere in c rease sh o w ed in c reased to ta l b an k s a F e b ru a ry p erio d , co m m e rc ia l) p rin c ip a l b y c itie s of su b sta n tia l of d em an d th e T w e lfth D is tr ic t a s w ill b e s e e n in th e ta b le o n fo llo w in g page. T h e av erag e w as 5 w eek s p erio d of rate p ercen t of 1936 1935. d e p o sit of tu rn o v e r of d em an d h ig h e r th a n T h e a c c o u n ts in d u rin g th e v o lu m e th e first co rresp o n d of in c re a se d d e b its 23 to p ercen t Bank Debits* — A r iz o n a P h o e n i x ............... .$ C a liforn ia B a k ersfield B e rk e le y ............ F r e s n o ................. L o n g B e a ch . . . L o s A n g e le s . . . O ak lan d ............ P a sa d en a ............ S a cra m e n to . . . San B e r n a rd in o . S a n D i e g o .......... San F r a n c i s c o . . . San J o s e ............ S a n ta B a rb a r a . San ta R o s a . . . S t o c k t o n ............ Idaho D is 18 re a c h e d a F ebru ary 1936 32,568 $ F ebruary 1935 25,623 t— First tw o m onths-----N $ 1936 69,806 $ 1935 56,588 12,255 16,342 22,085 30,672 722,165 75,095 24,405 106,257 7,669 42,831 858,901 19,449 9,840 3,350 14,366 9,788 13,645 17,688 24,400 567,535 55,935 19,365 76,241 6,078 33,219 671,077 14,852 8,300 2,967 12,416 26,252 36,764 48,718 66,122 1,557,032 163,009 52,080 213,261 16,126 91,314 1,698,440 43,371 22,381 7,510 31,679 21,907 29,061 38,755 51,234 1,186,892 123,736 40,353 148,771 13,435 67,492 1,370,133 33,057 17,656 6,437 27,410 13,114 11,384 29,671 26,520 8,248 6,643 17,352 14,675 4,776 141,154 10,624 3,445 109,810 8,633 9,902 281,559 22,808 7,173 229,156 19,291 13,174 53,985 11,403 45,297 26,719 114,987 25,808 101,275 4,602 5,653 155,753 32,635 27,458 3,560 8,347 3,859 4,603 123,095 27,885 20,143 3,844 9,059 10,066 12,400 326,373 73,467 55,030 7,656 20,120 8,332 9,744 258,903 60,488 43,079 7,565 18,731 .......... . $2,481,333 $1,948,232 $5,151,975 $4,063,657 N evada O regon E u g e n e ............... P o r tla n d ............ U ta h S alt L a k e C it y . W a s h in g to n B e llin g h a m . . . D is tric t in d u strie s, c o n tin u e d th e m o d tric t c ity m e m b e r b a n k s o n d e c lin e th e C h a n g e s in h o ld in g s o f o th e r s e c u r i M a r c h 2 0 r e f i n e r y q u o t a t i o n s w e r e $ 4 .7 5 an d T w e lfth sa le s F o llo w in g a n d $ 4 .8 5 p e r h u n d r e d beet on a th e of refin ed s u g a r fo r fu tu re d e liv e ry w a s re d u c e d to F e b ru G o v ern m en t co m advanced, Q u o ta tio n s co p p er of of 18. d e c lin e . irre g u la rly first h a lf d o w n w a rd , slig h tly . 44^4 m o v ed th e p each of im p o rta n t B etw e en re p o rtin g b a n k s in c re a se d d o lla rs, of 16. h o ld in g s an d S ta te s F e b ru a ry for farm u c ts a n d fo o d s c a u se d m o s t of th e 18 U n ite d by d em an d A M arch th e M arch in g m o d ity on by n o te s o ffset elev en Prices issu e d by p u rch ases \ y2 p e r c e n t n ew M arch w eeks d e p o sits of fre ig h t. of d ire c t o b lig a tio n s L o an s 6 2 5 ,0 0 0 b an k s p ercen t b o n d s ary F e b r u a r y 1936 r ~— co m p a r e d w it h ----- > J an . 1936 F e b . 1935 — — by 2 % W H O L E S A L E T R A D E —T w e l f th D is tr ic t P er ce n ta ge cha nge s in v al u e of sales A g ric u ltu ra l I m p l e m e n t s .......... A u to m o b ile S u p p lies ................. D r u g s ................................................ D r y G o o d s ....................................... E le ctrica l S u p p l i e s ...................... F u r n i t u r e ......................................... G ro ce rie s ......................................... H a r d w a r e ......................................... S h o e s ................................................ P a p e r an d S t a t io n e r y ................. A ll L in es ......................................... h ig h 21 S p o k a n e ............ T a c o m a .............. W a lla W a lla . ., Y a k i m a .............. T ota l *In thousands of dollars. 22 MONTHLY REVIEW OF BUSINESS CONDITIONS b etw e en o v er th e d id tw o n o t p erio d s, b u t rise v o lu m e of d e m a n d as la rg e a A s u b sta n tia l th e ra te p ro p o rtio n a te ly of tu rn b ecau se th e d e p o s its in c re a s e d b y a lm o s t p e rc e n ta g e rise in as th e v o lu m e tu rn o v e r of of d e b its. d em an d de- A N N U A L R A T E O F T U R N O V E R O F BANK D EPO SITS t------- D e m a n d D e p o s i t s ------- \ Pr in ci p al Ci t ie s in T w e l f th S an Lo s D is tr ic t F r a n c i s c o A ng el e s 1935 Jan . Feb. M ar. 9 16 23 30 24.8 26.4 25.1 22.1 25.1 27.9 27.5 25.2 26.4 27.2 26,1 21.1 1.2 1.0 .8 .7 1.1 .6 .5 .5 1.2 1.8 1.1 .8 6 13 20 27 26.4 20.1 29.1 24.3 29.7 21.8 31.8 27.7 25.3 20.3 30.1 25.4 .9 .7 .7 .5 .7 .6 .5 .5 1.1 1.0 1.0 .6 6 13 20 33.6 24.5 28.5 42.9 26.2 30.3 30.5 24.9 28.1 .9 .8 .7 1.0 .5 .6 .9 1.5 1.0 Feb. M ar. 8 15 22 29 30.0 26.4 27.1 23.8 32.0 28.0 28.6 24.1 30.2 27.3 29.0 25.4 2.4 1.2 .9 1.0 1.8 .8 .7 .6 3.5 1.9 1.5 1.7 5 12 19 26 26.1 19.4 29.5 26.2 29.2 19.1 31.7 30.2 25.7 21.3 29.7 26.9 1.0 .9 .9 .7 .8 .6 .6 .7 1.4 1.5 1.6 1.0 4 36.5 26.7 28.7 52.1 32.4 31.3 31.1 24.9 27.6 1.3 .9 .9 1.7 .7 .6 1.1 1.2 1.5 p o sits o ccu rred b o th th e y ears. m o n th d em an d In M arch . p rio r to th e assess d em an d d e p o sits red u ce to la rg e a checked sio n in c u sto m a rily fo r a in to ta l fo r o u t several in A n u n o ccu rred a m o u n t tim e s in w ith co n d o w n p erio d ta x e s. d e b its co n sid e ra b le co n n e c tio n d raw te m p o ra ry a ssessm en t rise b ecau se w as A t th a t tim e , b u s in e s s in d iv id u als o rd er of rap id fin a n c in g in fu n d s su cces o p e ra tio n s. A fte r a re d u c tio n in th e r a te o f tu r n o v e r d u r in g th e M arch w eek rise en d in g re su ltin g m e n ts an d U n ite d lo c a l a d d in g F ed eral reserv e th is th e a n o th e r p a y ta x e s. b alan ces F e b ru a ry ro se 19 th re e -w e e k T re a su ry c o lle c tio n s to w as m id -m o n th b etw e en D u rin g S ta te s ceeded of b an k d o lla rs 11. 11, th e r e o rd in a ry c o lle c tio n m e m b e r m illio n M arch fro m th e D istric t 11 of a 17 m illio n n et an d p erio d d isb u rse m e n ts b y fu n d s en d fo r d u rin g T h is d istric t as th e a first w e e k a s so c ia te d se ttle m e n ts c u rren c y C a lifo rn ia , th e w as m a n d an d a sm all re g u rise in 35 of m illio n lo c a l ex d o lla rs, bank s. T h is th re e tio n in g w eek s of M arch th e 1936— Jan . Jan. Jan. F eb. F eb. F eb. F eb. M a r. M ar. M ar. 1 5 ... 22 . . . . . 29. . . . . .. 5 12. . . . . 19. . . 26. . . 4. . . 1 1 ... 18 ... — .1 — 2.3 — .3 + 1 .4 + 2 .4 — 1.0 — 3.0 + 2.0 — 1.1 + 4 .2 193 6- -J an. Jan. Jan . F eb. Feb. Feb. Feb. M ar. M ar. M ar. 1 5 ... . . 22 . . . . 29 ., 5 . . . .. 12 . 19. . . 2 6 . .. 4 . . . .. 11. . . . . 18. . . . . Demand for Currency — — — + 7 8.3 2.7 4.6 .5 + 2.9 — 1.7 — .5 + 6 .7 — 1.3 — 2.3 *Change less than $50,000. of S ta te s so ld 2^4 1948-51 T h is an d in th e p ercen t 15.2 22.6 18.2 5.6 .8 5.0 5.4 7.4 4.3 26.6 [-13.3 - 5.0 - 6.6 -1 2 .2 - 2.7 - 8.9 blO .9 - 5.3 -1 8 .9 -4 8 .1 M ember Bank Reserve D e p o s it s + 6.3 — 16.1 — 7.1 + -7 + .9 + 5.9 + 3.0 — 6.6 + 14.5 — 15.2 Other F.R.B. Accounts * — — — + — — + + 1.1 .2 .2 .5 1.3 * .2 -3 -2 an d b y lo c al d e 15. O f th e n ew D istric t b a n k s a red u c w eek O n of M arch th e 16 th e D i s t r i c t $ 5 6 ,1 5 4 ,b o n d s \ y2 of en d la rg e ly o p e ra tio n s T re a su ry $ 4 9 ,2 1 6 ,0 0 0 b y th e refle c te d T w e lfth ch arg es A p ril 1941. fin a n c ia l G o v ern m en t. of th e — — — — — — — — — + in ex ceed ed d u rin g d ecrease b ecau se Treasury O p er at i o n s in slig h tly due d u e p erce n t in n o te s s e c u r itie s , $ 1 3 ,4 3 8 ,5 0 0 p e rc e n t n o te s m a tu rin g p aid f o r $ 3 8 ,3 7 2 ,0 0 0 o f F E D E R A L RESERV E BANK O F SAN FR A N C ISC O (in m illion s of dollars) t-----------------------C o n d it io n ---------------------- \ M a r . 18 M a r . 11 F e b . 19 M a r . 20 1936 1936 1936 1935 T ot al S up ply — — — + + + + — + — 2.0 19.9 11.9 8.0 4.3 2.9 2.5 .1 13.5 17.3 USES O F FU N D S Week E n d in g 18. m id -M a rc h T re a su ry 450 w as 15 m illio n d o lla r s w ere ex ch an g ed fo r 2 % C o m m er ci al O pe r a ti o n s d istric ts d o lla rs for cu rrency . th a n in o th e r T h e in c r e a s e in r e s e r v e b a la n c e s d u r i n g th e s e d istric t. th e SOURCES OF FUN DS R e s e rv e Bank Credit to 5 m illio n la rg e r S O U R C ES A N D USES O F B A N K IN G RESERVES T w e l ft h D is tr ic t C h a n g e s in millions of doll ars du rin g th e w e e k s indi cat ed W eek Ending of w as th ro u g h o u t in c rease w h o le , of M arch w ith d o lla rs in c re a se U n ite d la r d e p o sits a d d itio n w a s o n ly p a rtly o ffset b y a n e t o u tflo w 11 18 in in an d th u s 1936 Jan. M o n d ay cern s 1936 c--------- T i m e D e p o s i t s ----------\ Princ ip al C it ie s in T w e l f th S an Los D is tr ic t F r a n c i s c o A ng el e s d em an d m e n t o f th e p e rs o n a l p r o p e r ty ta x as o f th e first u su a lly D U R IN G W EEKS IN D IC A T E D W eek Ending a g a in st March 1936 T o ta l Demand — 2.0 — 19.9 — 11.9 + 8.0 + 4.3 + 2.9 + 2.5 — .1 + 13.5 — 17.3 T o t a l B ills and S e c u r itie s . . . 201 B ills D i s c o u n t e d ............................. B ills B o u g h t ....................................... U n ite d S tates S e c u r itie s . 199 458 T o t a l R e s e r v e s ........................ T o t a l D e p o s it s ........................ 363 R e s e r v e N o te C i r c u l a t io n .. 282 R a tio — R e s e r v e s to D e p o s it and N o te L ia b ilit ie s ............ 7 1 .0 % 201 ... ... 199 430 329 284 201 ... ... 199 408 315 278 7 0 .1 % 6 8 .9 % 168 1 ... 166 343 294 202 6 9 .2 % R E P O R T I N G M E M B E R B A N K S —T w e l f th D is tr ic t ( in m illion s of dollars) t-------------------C o n d it io n ------------------ > M a r . 18 M a r . 11 F e b . 19 M a r . 20 1936 1936 1936 1935 L o a n s an d In v e s tm e n ts — T o t a l . . L o a n s to B r o k e r s and D e a le r s .. L o a n s o n S e cu ritie s t o O th e rs ( e x c e p t b a n k s ) ............................. A c c e p t a n c e s and C o m ’ l P a p e r . . L o a n s o n R ea l E s t a t e ...................... L o a n s to B a n k s .................................. O th e r L o a n s ....................................... U . S. G o v . D ir e c t O b lig a t io n s . O b lig a t io n s G u aran teed b y U . S. O th e r S e cu ritie s ............................... R e s e r v e w ith F . R . B a n k ............ D u e fro m D o m e s t ic B a n k s .......... D e m a n d D e p o s it s — A d ju s t e d . . . T im e D e p o s i t s .................................... U . S. G o v . D e p o s its ...................... D e p o s its o f O th er B a n k s ............ 2,155 19 2,104 18 2,121 14 168 26 367 2 358 711 137 367 181 218 761 1,031 117 267 169 25 367 2 356 665 138 364 193 240 747 1,036 83 278 170 27 368 1 347 695 140 359 187 230 778 1,013 84 263 1,998 27 177 22 359 1 310 684 67 351 154 201 674 991 83 237 1 March 1936 FEDERAL RESERVE AGENT AT SAN FRANCISCO the bonds and notes by giving the Treasury a deposit credit and paid $53,560,000 in cash on March 16. The unusually large cash payments reduced the supply of local banking funds dur ing the week, as did income tax collections of 14 million dollars and other receipts and col lections amounting to 14 million dollars. The effect of these operations on bank reserves was offset only in part by Treasury bill redemp tions amounting to 8 million dollars, the pay ment of 4 million dollars in interest on the public debt, and other disbursements of 22 million dollars (exclusive of gold purchases). Consequently, 48 million dollars was transferred from member bank reserve balances to Treas urer's balances at the Federal Reserve Bank of San Francisco between March 11 and March 18. In order to meet the charges against reserve balances attributable to Treasury operations district banks drew on their balances held with eastern banks, thus contributing to a re duction of 19 million dollars in deposits carried by district reporting member banks with other banks. The proceeds of the withdrawals were transferred to this district and were deposited in the reserve accounts of the member banks at the Federal Reserve Bank of San Francisco. As a result of these and other commercial and financial transactions, there was a net transfer of 27 million dollars into the Tw elfth District from other regions during the week ending March 18. 23 Securities Markets Share turnover on Pacific Coast stock ex changes during the month ending March 14 was considerably lower than in the previous four weeks. A ctivity in low priced issues de creased proportionately more than in the higher priced shares. The number of shares traded increased only slightly during the week ending March 14, when political disturbances were reported from Europe and prices of se curities declined somewhat. Averages of share prices, after rising four to six percent between February 15 and March 7, declined during the week ending March 14 to levels somewhat below those of a month earlier. The largest decreases in prices were recorded in shares of utility companies. Prices of oil stocks were higher on March 14 than a month earlier. Pacific Coast corporation bond prices re mained practically unchanged throughout the last half of February and the first half of March. Yields on a few long-term high grade issues continued to decline. Prices of munici pal bonds advanced to new high levels, after which they declined fractionally. New security flotations in the corporate field were confined to approximately $8,000,000 of preferred stock. Offerings of municipal bonds were relatively large, totaling $25,000,000 between February 15 and March 14. 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 Board of Governors of the Federal Reserve System Volum e of industrial production and employ ment showed little change in February, and the index of production, which makes allowance for seasonal changes, declined from 98 to 95 percent of the 1923-1925 average. Distribution of com modities continued at about the January level. Production and Employment. Daily average output in basic industries was in about the same volume in February as in January. Since usually there is an increase in manufacturing activity at this season, the Board's seasonally adjusted index of factory output showed a de cline. Output at mines increased. There was a substantial further decrease in automobile pro duction in February, and the rate of operations at steel mills increased by less than the usual seasonal amount. In the first half of March production of steel expanded seasonally and output of automobiles showed a more than sea sonal increase. There was little change in the volume of lumber cut in February, although an increase usually occurs in that month. At woolen mills production increased by about the seasonal amount, while activity at cotton tex tile mills, which is usually larger in February than in January, decreased, and at silk mills there was a larger than seasonal decline. Out put at meat packing establishments also de clined. There was a substantial increase in the mining of both anthracite and bituminous coal, while output of crude petroleum declined somewhat. Factory employment increased by less than the usual seasonal amount between the middle of January and the middle of February. There was little change in the number of workers at steel mills and a decrease in the number em ployed at automobile factories, although in creases are usual in these industries in Febru ary. Employment declined at silk and rayon textile mills and showed a smaller than sea sonal increase at shoe factories. Increases in employment were reported for railroad repair shops, for printing and publishing establish ments, and for factories producing wearing apparel. Factory payrolls, which are usually larger in the middle of February than a month earlier, showed no change. 24 MONTHLY REVIEW OF BUSINESS CONDITIONS The value of construction contracts awarded, as reported by the F. W . D odge Corporation, declined further in February. Awards for resi dential construction showed little change, and there was a decrease in the value of awards for all other contracts, a large part of which are for public projects. Distribution. Department store sales showed little change from January to February and, after allowance for seasonal variation, were at about the same level as that prevailing last summer IN D U ST R IA L PR ODUCTION Index of physical volume of production, adjusted for seasonal variation, 1923*1925 average=100. By months, January 1929 to February 1936. and autumn. Freight carloadings increased by a small seasonal amount in February. Loadings of coal were considerably larger than in Janu ary, while shipments of miscellaneous freight declined, and the Board’s seasonally adjusted index of total loadings remained at the January figure of 70 percent of the 1923-1925 average as compared with 71 percent in December and an average of 63 percent for 1935. BILLIONS OF DOLLARS BILLIONS OF DOLLARS March 1936 four weeks ending March 18 and on that date amounted to $2,400,000,000. This decrease re flected chiefly a transfer of funds to Treasury deposits at the Reserve banks in connection with receipt of income taxes and of cash pay ments for newly issued Government securities. Loans and investments of reporting member banks in leading cities increased rapidly in March and on the eighteenth of the month were $525,000,000 higher than four weeks earlier. O f this increase, $190,000,000 represented a growth FACTORY EM PLOYM ENT Index of number employed, adjusted for seasonal variation, 1923-1925 average^ 100. By months, January 1929 to February 1936. in holdings of direct and guaranteed obliga tions of the United States Government and $80,000,000 an increase in other investments. Security loans, both to brokers and dealers and to others, increased, and there was a substan tial growth in so-called “ other loans” , which include loans for commercial purposes. Adjusted demand deposits of reporting mem ber banks declined by $340,000,000 during the BILLIONS OF DOLLARS BILLIONS OF DOLLARS ! TOTAL LOANS AND INVESTMENTS BALANCES OF =BANKS IN U. S. = — TIME DEPOSITS ~ -U.S.GQVT DEPOSITS- ¿S U.S.GOVT. DIREC:T OBLIGATIONS OTHER LOANS *TOCUSTOMERS __________ S >=(exccrr on heal estate) ■LOANS OH SCCURITICS-* — 1--------------------------TO CUSTOME W 1934 1935 1930 M EM B ER BANK CREDIT Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934 to March 18, 1936. M EM BER BANK RESERVES A N D RELATED ITEM S Wednesday figures. January 31, 1934 to March 18, 1936. Comm odity Prices. The general level of wholesale com m odity prices declined somewhat during the latter part of February and the first half of March, follow ing a six-month period of little change. The recent downward movement reflected declines in prices of farm products and foods. Bank Credit. Excess reserves of member banks decreased by $650,000,000 during the four weeks ending March 18. Balances held for domestic banks increased at the turn of the month as banks in the interior sold Govern ment securities in New Y ork in anticipation of maturities. During the week ending March 18 balances declined, partly as the result of banks throughout the country purchasing in the New Y ork market Government securities issued on March 16.
@FedFRASER