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M O N T H L Y R E V IE W OF B U S I N E S S C O N D IT IO N S JOHN PERRIN, Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. VII San Francisco, California, May 16, 1923 Summary o f National Conditions Production and trade continued in large vol ume during April. There was some slackening of business activity in the latter part of the month and during the early weeks of May, partly on account of seasonal influences. Production. The Federal Reserve Board's index of production in basic industries de clined about 1 per cent in April. Production of lumber, anthracite coal, and mill consumption of cotton decreased, while there were increases in the output of pig iron and petroleum. There was a further increase in the number of build ing contracts awarded in April, but the value of building permits issued in 168 cities was 16 per cent less than the record figures of March. Pin PER C E N T CENT 140 The decrease was due chiefly to a curtailment of new projects in New York, as the aggregate value of permits at other reporting cities showed an increase of 20 per cent. Car load ings continued to be much larger than in the corresponding weeks of previous years, owing chiefly to heavy shipments of manufactured goods. In spite of present heavy traffic, the shortage of freight cars has largely disap peared. Employment at industrial establish ments continued to increase during April, al though plants in Eastern states reported some reductions in their forces, and there was an increase in those states in the number of con cerns working part time. Increases in wage rates were announced by many concerns, and average weekly earnings of factory workers increased about 1 per cent. M IL L IO N S 300 !60i No. 5 O F D O LLA RS BILLIONS OF DOLLARS 250 ________ Æ 120 100 ----------- 80 60 200 V A \ ✓•159 150 100 40 50 20 1919 1920 1921 1922 1923 Index of Production in Basic Industries Combination of 22 individual series corrected for seasonal variation (1919 average = 100 per cent) .. 1 l-i- _i i_i_ 1919 1920 1921 1922 1923 Prices Bank Credit Bank Credit Index numbers of wholesale prices. United States Bureau of Labor statistics (1913 average=100 per cent) All Federal Reserve Banks 800 member banks in leading cities A substantial, black, cloth-covered, three-ring binder, large enough to contain one year’ s (12) issues o f this review, will be mailed prepaid to any address on our mailing list upon receipt o f one dollar to cover actual costs. 66 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S Trade. Wholesale and retail trade were somewhat smaller in April than in March, which is the customary trend at this season of the year. Both were well above the level of a year ago. Decreased sales by department stores in April as compared with March were, in part, due to the fact that Easter purchases were made in March, and in part to the un seasonably cold weather in many localities during April. Mail order sales during April were 10 per cent less than in March, but 32 per cent larger than a year ago. Wholesale prices. Prices of certain basic commodities declined during April and the early part of May. The general index of whole sale prices of the Bureau of Labor statistics, it is to be noted, showed no change between March and April. Prices of building materials, metals, cloths, and clothing were higher in April than in March, these advances being off set by declines in prices of fuel and of farm products, especially livestock and dairy prod ucts. Bank credit. Since the middle of April the volume of bank credit in use has remained relatively constant. Between April 11th and May 9th loans of member banks in leading cities showed an increase of nearly $100,000,000, a large part of which occurred in the Chi cago district. These increases in loans were accompanied by a somewhat larger liquidation of investments, which was general throughout the country. Partly through the sale of these investments, reporting member banks have met the demand for additional loans without obtaining increased accommodation at the Re serve Banks. The volume of Federal Reserve Bank credit has consequently continued fairly steady at the level which has prevailed since the middle of January, and the volume of Fed eral Reserve Notes in circulation has remained practically unchanged. Somewhat easier money conditions are indi cated by slightly lower rates on commercial paper and lower yields on outstanding treasury certificates. The Treasury offering of approxi mately $400,000,000 of per cent notes, ma turing March, 1927, was heavily oversub scribed, and the issue was subsequently quoted at a slight premium in the open market. Summary o f District Conditions A pause in the steady expansion of business and industry in the Twelfth District which characterized the first three months of 1923 appeared in the statistical record for April. In certain of the basic raw materials such as lum ber, metals, etc., the demand was not so insis tent as during the first quarter of the year; building was not so active as in March; and petroleum stocks, already somewhat burden some to the industry, again increased. Distri bution of goods at wholesale and retail was apparently slightly less in volume than during March, but is still considerably greater than it was a year ago. Labor continues to be fully employed. An upward trend of rediscounts of the Reserve Bank since the first of the year con tinued during April, but interest rates charged by banks in the larger cities remained steady. Output of lumber mills of the district was greater than in any month during the past four years. For the first time since November, 1922, however, the volume of both orders received and shipments made was less than production. Stocks of lumber, which have been and are be low normal, increased slightly as a result of this situation. Activity in mineral producing centers was maintained at the high levels of the first quarter of the year, but demand as reflected by prices for copper, lead, and zinc, de clined, bringing to a close a continuous price ad vance of twelve months duration. A new record for petroleum production in California was set during April when a flow of 689,865 barrels per day was reported. Increasing consumption has not kept pace with production in recent months, and storage facilities have been inade quate to care for the present flush output of wells in new producing fields. Some of the larger oil producing companies have deter mined upon a policy of voluntary curtailment of output. Building activity during April de clined from the record figures of March, 1923, but continued greater than one year ago. The gain over the year period in both the number and value of permits issued in the principal cities of the district was approximately 15 per cent. Involuntary unemployment in the dis trict has practically disappeared. A strike of loggers in the Pacific Northwest, called during the latter part of April, temporarily embar rassed the logging industry. The majority of the men who went out on strike have returned to work. The dollar value of business transacted dur ing April, 1923, as reflected by debits to indi vidual accounts at banks in 21 cities, was 20 per cent greater than during April, 1922. This increase was less by 6 per cent than that re ported in March, 1923, as compared with 67 FEDERAL RESERVE A G E N T A T S A N FRANC ISCO March, 1922. Trade at wholesale in 11 report ing lines of business was uniformly greater in value in April, 1923, than in April, 1922, in creases of 15 per cent or more being reported in 10 of the 11 lines. Department store sales at retail were 12 per cent greater in value than a year ago, and a more rapid rate of stock turn over is reported. The number of business fail ures in the district during April, 1923, was the smallest since September, 1922. The supply of credit continued abundant. An increase of $18,000,000 in “ all other loans, largely commercial” of 66 reporting member banks in the principal cities of the district was chiefly responsible for the rise in total loans and discounts of these banks from $971,000,000 on April 11th to $991,000,000 on May 9th. The latter figure is 20 per cent above the low point of February, 1922. Investments of reporting banks changed little during the month. De posits on the contrary declined by $15,000,000 between April 11th and May 9th, and the ratio of deposits to loans and investments was 2.5 per cent lower on the latter date than on the former. Demands upon the Reserve Bank for funds continued during April at approximately the same pace as during February and March. Since January 10th of this year total discounts of this bank have risen from $33,000,000 to $66,000,000, an increase of 100 per cent. Nearly all the increase has been due to rediscounting by San Francisco banks. Federal Reserve Note circulation increased from $196,000,000 on April 18th to $205,000,000 on May 16th, the first increase during the present year. The general price level was stationary dur ing April, but a slight downward tendency was apparent. The principal development among prices of products of this district was in the metals group, where quotations of copper, lead, and zinc, which have been advancing for the past year, declined without exception. Spring planting of crops of the district is well advanced and all crops now in the ground are reported to be in good condition. The weather during April was exceptionally favor able for general agricultural operations, and a marked improvement in the condition of crops, especially the growing grains, was noted dur ing the month. Deciduous fruit trees in Cali fornia bloomed heavily this spring, and not withstanding later losses caused by the drop ping of immature fruits, the United States De partment of Agriculture forecasts average crops of all varieties, with the possible excep tion of prunes. Livestock reports of the same authority state that losses of cattle, sheep, and hogs during the past winter were small, and that animals are entering the summer in good condition. Crop Conditions Favorable growing weather during April im proved the condition of grain crops in all states of the district. In California the rains of early April revived drying fields of barley, while in the Pacific Northwest mild weather and a plen tiful supply of moisture during the month benefited the growing crop of wheat. During the autumn of 1922, 3,700,000 acres were sown to winter wheat in the principal grain raising states of this district, 5.0 per cent of which had been abandoned by May 1, 1923, due to adverse weather conditions or other causes, leaving 3,516,000 acres to be harvested. In the autumn of 1921 there were 3,579,000 acres sown to winter wheat of which 6.3 per cent had been abandoned by May 1, 1922. Bas ing its estimate on the average condition of winter wheat in the different states of the dis trict on May 1st, the United States Depart ment of Agriculture forecasts a total 1923 yield of 75,033,000 bushels, compared with the 1922 crop of 67,649,000 bushels (estimated at 71,440,000 bushels on May 1, 1922). The following table gives the government estimates of the condition of winter wheat, acreage sown, and percentage of acreage abandoned for the 1923 crop by principal wheat growing states in this district : Condition Per Cent t--- Per Cent of Normal----> Acreage Abandoned 10 Sown by May 1, Apr. 1, May 1, Year Autumn May 1, 1923 1923 1922 Average 1922 1923 California .. . . Oregon , Utah .......... . W ashington . Tw elfth Dist. United States 88 88 75 91 92 85 84 80.1 75.2 92 95 90 90 88 91 93 85 83.5 82 94 95 94 91 813,000 409,000 879,000 143,000 1.456.000 3.700.000 87.5 46,379,000 8 4 3 2.5 5 5 14.3 The wheat markets of the district were rela tively inactive during April, a continuation of the condition which has prevailed during the greater part of the present year. The export movement of wheat from Portland and the Puget Sound ports has been light during the entire season beginning July 1, 1922, and on May 1, 1923, the total seasonal movement amounted to only 16,719,289 bushels, 58 per cent less than exports during the period July 1, 1921, to May 1, 1922. Early sown barley fields in California sur vived the drought of February and March, and were greatly benefited by the state-wide rains which fell during the first week of April. It was necessary to abandon some late sown bar ley, however, and the total acreage to be har vested as grain during the forthcoming season will be below the average of the past few years. It is reported that the old crop barley in California has been moving slowly during recent months. 68 M O N T H L Y R E V IE W OF B U SIN E S S CO N D IT IO N S Spring planting operations are well advanced throughout the district and field crops already planted are generally reported to be growing well. Cotton planting has been practically com pleted in Arizona and California, and an ex cellent stand of young plants has been ob tained in the earlier cotton-raising sections. Thinning of sugar beets has begun in Califor nia, the crop being reported in good condition. Commercial reports indicate that the acreage of ordinary lima beans in California will be smaller than it was last year, but that plant ings of Henderson bush beans, or baby limas, will be increased. Final estimates of the 1922 bean crop in California place the total yield at 2.867.000 bags of 100 pounds each, comprising 1.275.000 bags of lima beans and 1,592,000 bags of all other varieties. During the last half of 1922 an active demand for beans resulted in advanc ing prices for nearly all varieties. For the past few months, however, the market is reported to have been relatively inactive, with slightly declining prices. Warehouse holdings of all varieties of beans in California on May 1, 1923, were reported to total 812,089 bags of 100 pounds each, compared with 765,771 bags held on May 1, 1922. Approximately 300,000 bags of pink beans and 200,000 bags of lima beans are included in the reported stocks on May 1, 1923. Mild spring weather in all fruit-raising sec tions of the district brought forth an excellent bloom on deciduous fruit trees, and generally favored a heavy setting of fruits. In California, however, prospects for large crops have been diminished to some extent by the heavy drop ping of most fruits during the past month. The apricot and plum crops are the only deciduous fruit crops in that state which are still reported to be in excellent condition. Prunes have suf fered most severely, the reported condition of the crop on May 1st being only 60 per cent of normal, as compared with 95 per cent on May 1, 1922. The cherry crop, which is now being picked, has been reduced by light frosts in some sections of California. Estimates of the peach and pear crops have declined during April and early May as a result of heavy drop ping of the immature fruits. The condition of California deciduous fruit and nut crops on May 1st, as reported by the United States De partment of Agriculture, is given in the follow ing table l Condition on May 1st (percentage of normal) 1923 1922 Alm onds ................ Apples ..................... Apricots .................. Cherries .................. Peaches ................... Pears ........................ P l u m s ........................ Prunes ..................... 75 80 98 73 87 90 95 60 *N ot estimated in 1922. boxes. fCom m ercial crop. 70 96 52 90 92 92 * 95 1922 Final Yield 8,000 tons 3,600,000 boxesf 120,000 tons 12,000 tons 420,000 tons 125,000 tons 46,000 tons 95,000 tons Total crop— 7,656,000 Fruit crops in the Pacific Northwest are re ported to be in excellent condition, with pros pects for normal or heavier than normal yields of all varieties. The important loganberry crop in Oregon has suffered from the depredations of insect pests and from short spells of un favorable weather during the winter season, and a small crop is expected. Prices for canning cherries during the 1923 season have been set by the organized growers in California at $220 to $240 per ton, an ad vance of $24 to $44 per ton over last year’s price of $196 per ton. Canners have purchased some fruit at prices ranging from $190 to $200 per ton from independent growers. Prices for other fruits have not yet been established. The shipment of 907 carloads of apples from the district during April brought total seasonal shipments to 40,421 carloads, leaving some what less than 4,000 carloads in storage in the district on May 1st. On May 1, 1922, ship ments of 1921-1922 crop apples from this dis trict had reached 50,287 carloads, and there were approximately 800 carloads remaining in storage. Reports state there is a surplus of apples in Eastern cities, which has tended to restrict the marketing of the Western fruit. Although supplies of apples are plentiful, prices for the better grades are reported to have strengthened during the past month. Orange and lemon groves in California have bloomed heavily during the present season, and are now in much better condition than at this time last year when they had only partially recovered from the severe freeze of January, 1922. Commercial reports state that approxi mately 7 per cent of the Navel orange crop of approximately 10,000,000 boxes remained un shipped on May 1st. Only a small proportion of the Valencia orange crop, now estimated at 10,278,000 boxes, had been marketed up to that date. Total shipments of oranges and lemons up to May 1st of the past two seasons have been as follows: M , Nov. 1st to May 1st 1922-1923 (cars) Oranges ................................................. Lem ons .................................................. 25,416 3,479 1921-1922* (cars) 18,642 4,065 *The method of compiling shipments has been changed and the published figures for the 1921-1922 season are not comparable with those printed in the April issue of this review. The cor rected figures for the 1921-1922 season to April 1st are 15,250 cars o f oranges and 3,118 cars o f lemons. Canned and Dried Fruits Reports from commercial factors indicate that canners generally will operate conserva tively during the 1923 season, the extent of their pack depending chiefly upon the volume of their sales contracts and the movement into consumption during the remaining months of the 1922-1923 season of the stocks of 1922 pack fruit still unsold. 69 FEDERAL RESERVE A G E N T A T S A N FRANC ISCO It is estimated that the 1923 Hawaiian pine apple pack will be 10 per cent larger than the small 1922 pack of 4,770,000 cases, which was greatly reduced because of the small crop, oc casioned by drought conditions during the win ter of 1921-1922. Present unsold stocks of canned pineapples are reported to be small. Opening prices for the 1923 season, as recently announced by the largest factor in the trade, were from 10 to 35 cents per dozen cans above 1922 opening prices, as shown by the following table: Opening Price per Doz. Cans 1923 1922 1921 Extra, sliced, N o. 2 y2 c a n s ... $3.25 Extra, crushed, No. 2 y2 cans. 2.10 $3.00 1.75 $2.35 2.00 The total receipts of all classes of livestock at eight principal markets in the district during the first four months of 1923 were 16.0 per cent greater than during the same period in 1922, as shown in the following table: Receipts, Januaryrto April inclusive 1923 1922 Cattle and C alves........ H og s ............................... Sheep ............................... 362,518 761,393 830,567 Total ............................ 1,954,478 307,386 595,318 781,408 1,684,112 Per Cent Increase 1923 over 1922 17.9 27.8 6.2 16.0 The large increase in receipts of hogs re flects, in part, the increased production of hogs in this district during the past year as com pared with the previous year. To a greater ex tent, however, it represents an increase in the importation of hogs into this district from other states. A t the principal livestock mar kets of the district approximately 65 per cent of the hogs received during this period came from outside of the Twelfth Federal Reserve District. Independent packers of dried fruits have re cently announced tentative opening prices on dried apricots and prunes at levels below those of a year ago, but the amount of fruit they have to sell is small. A s reports of a small prune crop have been substantiated, the price of this product has become firmer. Buying interest in old crop dried fruits has been lacking, with the market generally dull. Stocks of raisins in Cali THOUSANDS fornia continue abnormally large. Price an nouncements and sales plans have awaited the recently consummated reorganization of the raisin growers co-operative association which controls 85 to 90 per cent of the crop. Livestock Statistical confirmation of the benefits accru ing to the livestock industry from the recent mild winter and favorable spring is contained in the May reports of the United States De partment of Agriculture. They state that losses of livestock from disease and exposure during the past winter and spring have been smaller than during the previous year in all states of the district. During the past month livestock ranges of the district continued the improve ment noted in previous months of this year. Grass which had been slow to start in the In termountain States, due to the cold weather prevailing in April, is now springing up on the lower ranges. Some feeding is still necessary, however, in these states. Lambing has been practically completed throughout the district. Losses of ewes and lambs have been light this year, as ewes en tered the lambing season in good condition and feed has generally been plentiful. Shipments of lambs from California reached their peak during the past three weeks and are now be ginning to decline. Up to May 19th, approxi mately 234,000 lambs had been shipped from that state. Shipments of lambs from the North ern states of the district do not commence in volume until about June 1st. Receipts of Livestock at Eight of the Principal Markets of the District 1922-1923. (Los Angeles, Ogden, Portland, Salt Lake City, San Francisco, Seattle, Spokane, and Tacoma included) During April, 1923, receipts of livestock were smaller than during March, 1923, but except ing sheep, they were greater than during April, 1922. Receipts of sheep were practically the same as in April, 1922. Prices for cattle in the principal markets of this district tended to ad vance during the past month, while prices for hogs, lambs, and sheep declined slightly. Wool Shearing of wool proceeded rapidly during April and the first two weeks of May. Fleeces are generally proving to have been well grown and of good quality, a reflection of the favor able weather during the past season. In Ari M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S 70 zona, California, and Washington more than 75 per cent of the forthcoming clip is reported to have been shorn, while the estimated pro portion of the clip already collected in other states of the district varies from 25 to 35 per cent in Idaho and Utah, to 15 and 20 per cent in Nevada and Oregon. Commercial estimates now place the 1923 wool clip in the district at 78,750,000 pounds, a decrease of 250,000 pounds from previous estimates, but an increase of 6.2 per cent over the 1922 clip of 74,123,000 pounds. Buying of wool became active as shearing proceeded, and it is estimated that over 75 per cent of the total clip in this district has now (M ay 15th) been sold. Present prices to growers range from 40 cents per pound for the lower grades of wool to 55 cents per pound for wool of the best quality and grade. A t a re cent sale of 600,000 pounds of wool held in Northern California the top price paid was 53*4 cents per pound. Last year at this time buyers were contracting for wool at 20 to 40 cents per pound, the price depending partly upon the quality and grade of the wool and partly upon the convenience and cost of transportation to consuming markets. accordingly. Production of 46 reporting amounted to 563,560 barrels during April pared with 710,241 barrels produced by 48 in March. The curtailed output of April, was, however, approximately 12 per greater than production in April, 1922. No. of Mills Reporting April, Mar., 1923 1923 t--------------------- Output--------------------\ April, 1923 Mar., 1923 April, 1922* (barrels) (barrels) (barrels) California ..1 0 Idaho ......... 3 O regon . . . . 17 W ashington 16 10 3 18 17 214,879 8,912 115,118 224,651 District . . . . 48 563,560 46 mills com mills 1923, cent 243,179 11,386 144,273 311,403 171,360 13,566 88,157 221,863 710,241 494,946 *61 M ills reporting. Reports received from 16 large milling com panies show that sales of flour during April were slightly in excess of production, and Dairy and Poultry Products Holdings of cold storage butter in the prin cipal markets of the district were increased greatly during April, removing from the mar kets a considerable part of the fresh butter which becomes available in large quantities at this season of the year. The amount of butter in storage on May 1, 1923, was approximately 27.8 per cent less than the amount held on May 1, 1922. Butter prices, although they tended downward during April, were, on May 1st, approximately 25 per cent higher than a year ago. The heavy movement of eggs into cold stor age noted in March continued during April. On May 1st total cold storage holdings of eggs in the principal markets of the district were 314,697 cases, more than double the stocks held on April 1, 1923, and 9.3 per cent greater than the holdings on May 1, 1922. A summary of the cold storage holdings of butter and eggs in the chief markets of the Twelfth Federal Reserve District is presented in the following table: May 1, 1923 Butter (p o u n d s).. 532,956 E ggs (c a se s)......... 314,697 April 1, 1923 March 1, 1923 May 1, 1922 66,173 145,204 378,764 1,352 738,209 287,683 Milling The light demand for flour in both foreign and domestic markets which characterized the first quarter of the present year continued dur ing April, and millers restricted their output THOUSAND BARRELS 900r 700 STCCKS OF FLOUR/ 500 ■V» % 300 * » \ J OUT PUT 0 ' FLOUF IOO Pi i i l i i i 1 ..t -Jl Li__i__LLi—J— LÜ— 1— L. 1922 i i i l i i il 1923 Monthly Flour Output, and Stocks of Wheat and Flour at End of Month, of 16 Reporting Milling Companies stocks were reduced from 549,582 barrels on April 1st to 541,303 barrels on May 1st. Stocks of wheat held by the same companies on May 1, 1923, were 20.4 per cent less than on April 1, 1923, but, at 2,243,886 bushels, were 22.5 per cent greater than on May 1, 1922. On April 1, 1923, stocks of wheat held by these millers were 58 per cent larger than on April 1, 1922, and a similar comparison as of March 1st shows an excess of holdings this year amount ing to 88 per cent. The large stocks of wheat purchased in the fall of 1922 have been rapidly reduced in recent months. Prices Marked price discrepancies continue to exist among the various agricultural products of the district. One group, including sheep, lambs, hogs, wheat, rice, and fresh and dried decidu ous fruits, is now bringing prices below those of a year ago. A second group, including cat- FEDERAL RESERVE A G E N T A T S A N FR A N C ISCO tie, wool, barley, cotton, sugar, and lemons, is selling at prices well above those of a year ago. The general level of prices has advanced dur ing the past year, and the purchasing power of those agricultural products which have not ex perienced a corresponding rise has been re duced proportionately. Prices for sheep, lambs, wool, rice, sugar, and oranges advanced during April, 1923. The average of 98 wool quotations on the Boston market at 83.49 cents per pound on May 4th was 41.5 per cent higher than at the beginning of May, 1922. The price of refined beet sugar on the San Francisco market reached a peak for the present upward movement, when that commodity was quoted at $10.05 per hundred pounds on April 30th. The present (M ay 16th) quotation is $9.90 per hundred pounds. Cotton prices (spot quotations on middling upland cotton at New Orleans) declined approxi mately one cent per pound during April, but remained 57.1 per cent above the level of one year ago. The steady upward movement in prices of the non-ferrous metals, which has been in progress for a year past, ceased, at least tem 71 porarily, during April. The price of copper de clined one cent per pound and prices for lead and zinc were fractionally lower at the close of the month than at its beginning. Present quo tations of copper, lead, and zinc are, respec tively, 26, 46, and 38 per cent higher than in May, 1922. JNOEX NUMBERS 1920 1921 1922 1923 Wholesale Prices and the Cost of Living. 1920-1923 United States Bureau of Labor Index of Wholesale Prices (1913=100) National Industrial Conference Board Index of the Cost of Living (July 1914=100) (A) Commodity Prices— Commodity Tw enty Basic Commodities (F. R. B. of N . Y .) 1913=100. W holesale Prices (U . S. Bureau of Labor*) 1 9 1 3 = 1 0 0 -----Cost o f Living (National Industrial Conference Board) July, 1 9 1 4 = 1 0 0 ........................................................................................ Cattle (Native B e e f). . .W e e k ly average price at C h icago.. Sheep ..................................W eek ly average price at C h icago.. Lambs ............................... W e ek ly average price at C h icago.. H og s ...................................W eek ly average price at C hicago.. W h e a t .................... Chicago contract prices for M ay W h e a t. B a r le y .................... Shipping Barley f. o. b. San F ran cisco.. . R i c e ......................... California Fancy Japan at San Francisco Cotton ................... Middling Uplands— W eekly range of spot quotations at N ew O rlean s......................... W o o l ..................... Average of 98 quotations at B osto n .......... F l o u r ...................... First Grade Family Patent f. o. b. Pacific Coast mills ........................................................ Sugar ..................... Beet granulated f. o. b. San F r a n c isc o ... Oranges ................Navels, Market pack, Los A n g ele s............ Lem ons .................Loose pack at Los A n g eles............................ Dried A p p le s .. . .Choice in 50-lb. boxes f. o. b. C alifornia.. Dried A p r ic o ts ... Choice in 25-lb. boxes f. o. b. California.. Prunes ................... Size 40/50 in 25-lb. boxes f. o. b. Calif-----Raisins .................. Loose Muscatel, 25-lb. boxes, f. o. b. Calif. Canned A pricots. Choice 2 ^ s f. o. b. California...................... Canned Peaches.. Cling Choice, 2 ^ s f. o. b. California......... Canned P e a rs... .Bartlett, Standard 2 ^ s f. o. b. California. Raw M ilk ...............Pacific Coast— April average.......................... B u t t e r .................... 93 score at San Francisco................................ E g g s ....................... Extras— San Francisco .................................. Copper ..................Electrolytic; N ew Y o rk S p o t....................... L e a d ....................... N ew Y o rk S p o t.................................................... S ilv e r ...................... New Y o rk F oreign............................................. Zinc ........................ East St. Louis S p o t........................................... P e tr o le u m ............ California 35° and above.................................. Douglas F ir .......... 2x4, 16-ft. N o. S1S1E f. o. b. S e a t t le .... Douglas F ir .......... 12x12 Timbers f. o. b. Seattle........................ *Rerised Figures. Unit May 4.1923 157.4 159.0 100 lbs. 100 lbs. 100 lbs. 100 lbs. bu. cental cental One Month Ago One Year Ago 161.3 159.0 159.2 159.1 $ 9.05 $ 9.10 8.20 8.35 13.45 13.75 8.00 8.40 1 .1 7 ^ -1 .1 9 ^ 1 .2 1 ^ -1 .2 3 % 1.60-1.65 1.65-1.75 4.30 4.15 lb. lb. 27.00-28.25* 83.49* bbl. 100 lbs. box box lb. lb. lb. lb. doz. doz. doz. 100 lbs. lb. doz. lb. lb. oz. lb. bbl. M ft. M ft. 7.79 9.90 2.50-3.00 3.00-3.25 .0 7 ^ - .0 7 ^ .15 .10J4-.11 .11 3.30 2.75 2.75 2.75 .43J4 .32 .16** 7.754 .67 Ÿ4 7.00-7.054 1.04 23.50 26.50 28.00-29.50* 82.14* 7.79 9.00 2.25-2.75 3.00-3.25 .08 .21 .1034 .11 3.30 2.75 2.75 2.83 .43 .29^2 .17Vs 8.304 .66 Vs 7.45-7.504 1.45 23.50 25.00 133.1 143.0 154.8 $ 8.25 9.00 14.85 10.25 1.3 6 *5 -1 .3 9 # 1.45-1.55 4.90 17.00-18.12* 58.98* 8.08 5.60 5.50-6.00 2.50-3.00 .1 6 ^ .26 ,1 4 -.1 4 ^ .1 5 ^ 3.00 2.60 3.00 2.32 .35 .2 7 ^ .13 5.30* .70% 5.05-5.15* 2.45 14.50 17.00 72 M O N T H L Y R E V IE W OF B U SIN E S S C O N D IT IO N S Lum ber Production of lumber in this district, which has been increasing steadily since December 1, 1922, reached, in April, 1923, the largest total reported during the past three years, a total which exceeded the previous record month of October, 1922, by 4.7 per cent. Orders received and shipments dispatched during April were at approximately the same high levels as those reported during the previous three months of this year, but did not keep pace with produc tion, and for the first time since November, 1922, mills produced more lumber than they sold or shipped. Some accumulation of stocks of green lumber has resulted, but the holdings of the mills are still considerably below nor mal. A record of the activity of reporting mills follows (000 omitted) : Production ........... Shipments ............ , Orders ..................... . Unfilled O rders.. . . April, 1923 (board feet) Mar., 1923 (board feet) April, 1922 (board feet) 646,508 630,596 601,184 593,496 573,471 659,718 601,543 639,430 443,222 474,085 557,987 440,441 MILLIONS OF BOARD FEET Association, which includes a majority of the manufacturers of Douglas fir lumber: K ail T ra d e Orders Accepted. Orders Shipped.. April 28,1923 (cars) Mar. 24,1923 (cars) 7,922 8,989 7,180 9,539 April28,1923 Mar.24,1923 (board feet) April29,1922 (cars) 7,422 7,106 Cargo Trade (000 omitted) Orders Accepted: (board feet) Domestic .......... 125,346 E x p o r t ................ 41,190 Total ................... Orders Shipped: D o m e s t ic ........... Export ................ Total ................... 118,623 52,301 April29,1922 (board feet) 94,998 63,025 166,536 170,924 158,023 120,236 42,624 134,693 42,500 72,373 45,576 177,193 117,949 162,860 Logging operations in Oregon and W ashing ton proceeded at approximately 100 per cent of capacity during April, supplying logs sufficient to meet mill requirements in all sections. There were, however, few additions to surplus stocks of logs. On April 25th a loggers’ strike was called by the Industrial Workers of the World, reducing logging output to approximately 65 per cent of normal. The supply of logs already cut on May 1st was estimated to be sufficient to care for mill requirements for 60 days. A sustained interruption of logging operations at this time, however, would have seriously cur tailed the output of saw mills later in the year. Striking loggers began to return to work on May 7th, and production is now (M ay 16th) estimated to be 80 per cent of capacity. Mining Lumber Production, Orders Received, and Shipments in Twelfth Federal Reserve District as Reported by Four Lumber Associations, 1922-1923 Demand for lumber in the domestic market continued unusually active during April, 1923, due principally to improved transportation conditions and to the widespread activity in home building and industrial construction. The heaviest buying has been reported from Cali fornia and the North Atlantic Coast markets, with South Dakota, Minnesota, Wisconsin, Iowa, and Illinois following in approximately the order named. In the foreign market dealers in Australia, China, Japan, and South America have been the principal buyers. In general, prices on the various grades of Pacific Coast lumber remained fairly stable during the month. Compared with prices one year ago, April, 1923, prices show an increase in most items. The distribution of the present trade in lumber is illustrated by the following figures furnished by the W est Coast Lumbermen's Reports from the mineral producing sections of this district state that the activity which characterized the month of March continued during April. Production was greatly in excess of one year ago, when the copper mines in par ticular were just resuming operations after a long period of inactivity. Development work has been proceeding actively. In Utah the smelters are now producing approximately 100 per cent more lead and 40 per cent more copper than they were six months ago, and the same conditions prevail to a greater or lesser degree in other producing states. Capacity produc tion of silver continued, as mines hurried to produce as much metal as possible before gov ernment purchases under the Pittman Act, at the fixed price of one dollar an ounce, are sus pended. Officials of the United States Mint state that at the present rate of purchase gov ernment buying will be completed about July 1st. Gold production in California has reached approximately 100 per cent of the capacity of the deep gold mines and the dredges now in operation. A shortage of mine labor has been FEDERAL RESERVE A G E N T A T S A N FRA NC ISCO reported from some mining sections of the dis trict. Figures of the national production of copper, silver, and zinc during March are now available and are presented in the following table: Copper (lbs.) Mar., 1923 Feb.. 1923 Mar.. 1922 (mine production) 122,193,969 102,515,414 62,305,403 Silver (oz.) (commercial bars) 6,109,841 4,728,953 4,186,042 Zinc (tons) 40,480 35,616 26,532 (slab) .................... 73 steady increase in consumption. Storage facili ties have been greatly enlarged during the past year, but have proved inadequate to care for the flush production of new producing fields. The voluntary reduction of output aforemen tioned has resulted. Sixty new wells were comMILLIONS Figures for lead are not available. Consumption of these metals is reported to have continued at high levels during the past month, but the market has reflected a decline in buying demand. The prices of copper, lead, silver, and zinc, which have been increasing steadily during the past year, declined without exception during April, 1923. Average prices for these metals are quoted in the following table: . „. /------------ Average Prices ....... .......n April. 1923 Copper (lb.) (cents) N ew Y o rk Electrolytic. 16.91 Lead (lb.) New Y ork ......................... 8.10 Silver (oz.) N ew Y o rk F oreign ........ 66.85 Zinc (lb.) St. L o u i s ............................. 7.19 Mar., 1923 April. 1922 (cents) (cents) 17.08 12.82 8.25 5.11 67.55 66.57 7.70 4.90 Petroleum Notwithstanding some voluntary curtail ment of output in Southern California fields, another new high record for production of petroleum in California was established during April, 1923. Daily production during that month averaged 689,865 barrels compared with 632,522 barrels in March, 1923, the previous record month. One year ago in April, 1922, average daily production was 341,077 barrels. Expanding activity in industry and seasonal increases in the demand for petroleum prod ucts resulted in an increase in the shipments (consumption) of crude petroleum during April, 1923, which at 611,736 barrels per day, exceeded daily shipments during March, 1923, by 36,660 barrels or 6.3 per cent, and daily shipments during April, 1922, by 330,771 bar rels per day or 117.7 per cent A considerable part of the increased shipments of California petroleum, as compared with a year ago, is finding a market on the Atlantic and Gulf coasts, reaching eastern ports by way of the Panama Canal. Such shipments totaled 4,681,000 barrels (crude and refined oil) during April. Stored stocks of petroleum in California reached the record level of 68,937,559 barrels on May 1, 1923. One year ago they stood at 39,795,057 barrels. This increase of approxi mately 75 per cent has occurred in spite of a CALIFORNIA Production, Shipments, and Stored Stocks of Petroleum, and Refinery Stored Stocks of Gasolene. 1922-1923 pleted during April and 29 wells abandoned, a net increase of 31 producing wells during the month. Stocks of gasolene held at refineries in Cali fornia on April 1, 1923, totaled 138,058,780 gal lons, compared with 119,809,000 gallons held on March 1, 1923, and 63,718,701 gallons held on April 1, 1922. Electric Energy Total industrial sales of electric energy dur ing March, 1923, were 25.3 per cent greater than during March, 1922, according to reports from 20 electric power companies in the Twelfth Federal Reserve District. The in crease in sales of power during March, 1923, compared with March, 1922, is the largest monthly increase reported during the past year, and indicates a continued quickening of the industrial activity during the first quarter of the year noted in previous reviews. Per centage comparisons of sales by certain indus tries and by sections of the district are pre sented in the following table: Percentage Increase March, 1923, compared with March, 1922 Total Agricul Manu Industrial ture Mining facturing Sales California ............... . Pacific Northwest. . Intermountain . . . . Twelfth D istrict.. . 68.2 10.0 54.2 66.6 7.7 20.8 98.3 13.5 38.3 19.1 10.9 33.0 22.2 9.8 80.5 25.3 74 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S Compared with February, 1923, sales of elec tric power increased 7.7 per cent during March. This increase is a normal seasonal movement, and ignoring the difference in the number of days in the two months, is due primarily to the demands of agricultural consumers of power in California, Idaho, and Arizona. MILLIONS O f KILOWATT HOURS 450i-------------- 400 19 2 2 350 300 —i — Per Cent Increase Apr., Number of Number of Men on Payroll* 1923, over Firms Apr. 30,1923 Apr. 30,1922 Apr., 1922 1923 250 200 Total Industrial Sales (K. W. H.) of 20 Power Companies in Twelfth Federal Reserve District, 1922-1923 Figures showing the number of industrial consumers and industrial sales of reporting companies during March, 1923, and March, 1922, follow: Number of Industrial Consumers Mar., Mar.. 1923 1922 Industrial Sales K.W. H. Mar.. Mar., 1923 1922 55,680 46,914 Pacific Northwest . . 11,663 Intermountain States 4,956 10,486 9,716 180,931,196 65,044,698 44,971,806 147,973,506 59,204,764 24,909,958 Tw elfth District . . . . 67,116 290,947,700 232,088,288 California .................. 72,299 Employment Seasonal activity in agriculture, lumbering, fishing, building, and highway and railroad construction has increased the demand for skilled and unskilled laborers in all sections of the district. Reports received since the close of April indicate that, with few exceptions, in dustrial operations are now being carried on at the maximum capacity permitted by the available number of workers. Shortages of farm laborers, building trades artisans, and mine workers have been reported from a few sections during the past month. More men were reported employed in the logging camps and saw mills of the district during April, 1923, than at any previous time in the history of the lumber industry. Reports from the 10 principal lumbering sections show that 90,000 loggers and lumbermen were on the payrolls on April 30, 1923, compared with 85,000 men on April 30, 1922, an increase of 5.8 per cent. The mines of the district, which have experienced considerable difficulty in securing an adequate number of laborers for some time past, now report that the seasonal movement of unskilled workers to the farms has begun, and their forces in many cases have been fur ther depleted. Compared with April, 1922, em ployment in the manufacturing industries dur ing April, 1923, increased approximately 18 per cent according to figures compiled by the United States Employment Service of the De partment of Labor. Figures showing the total number of workers on the payrolls of 40 manu facturing firms usually employing 501 men or more are given in the following table: L os A n g e le s... . 16 8 P o r t la n d .......... San Francisco. . 10 Seattle .............. 6 31,290 9,112 25,698 8,138 2,629 2,205 21.7 17.3 9.0 19.2 Totals .......... . 40 51,169 43,136 18.6 7,767 7,466 *These figures do not represent the total number o f men engaged in manufacturing activities in these cities, but only the pay roll figures o f a selected number of firms. Reports of wage increases have become numerous. Laborers in various industries are estimated to be receiving wages from 5 to 15 per cent higher than one year ago. On April 25th the Industrial Workers of the W orld called a strike among the loggers of the Pacific Northwest lumbering regions. The an nounced purpose of the strike was to protest against the further confinement of so-called political prisoners in that section. It is vari ously estimated that from 5,000 to 15,000 men were temporarily unemployed as a result of the strike. Most of the strikers have now (M ay 16th) returned to work. Retail Trade Sales of 34 department stores in this district during April, 1923, were 12.1 per cent above those of April a year ago, and were larger than in any previous April during the past four years. This large increase occurred despite the fact that Easter purchases were made in March this year, whereas last year a large part of the Easter buying was done in April. The number of individual sales transactions during April, 1923, as reported by 16 stores, was 3.5 per cent greater than during April, 1922. Compared with March, 1923, sales during April declined 7.7 per cent, which is less than the normal seasonal decline during this month. 75 FEDERAL RESERVE A G E N T A T S A N FRANC ISCO The value (selling price) of stocks of re porting department stores on April 30, 1923, was 7.0 per cent greater than on April 30, 1922. As sales increased 12.1 per cent during the year period, it is evident that retailers have not in creased their stocks of merchandise in propor tion to the increase in the value of their sales. A more rapid turnover of goods is indicated. A detailed statement of the percentage changes in the value of sales and stocks of 34 depart ment stores in this district follows: Percentage increase Percentage increase or decrease (—) in or decrease (—) in sales April, 1923 stocks April, 1923 compared with compared with No. of April, March, April, March Stores 1922 1923 1922 1923 Los A n g ele s......... .6 15.1 — 7.4 Oakland .................4 Salt Lake C i t y ... 4 San F r a n c isc o ... 9 Seattle ................... .5 Spokane ................ .5 1.4 13.0 12.3 12.9 6.4 D is t r ic t * ................34 12.1 — 14.3 .3 — 11.1 — 1.9 — 2.0 — 7.7 2.7 2.7 4.3 — 8.3 9.9 22.0 — 2.1 4.4 — 4.0 10.3 5.8 7.8 7.0 5.9 *Figures for one store included in the district figures but not in cluded in figures for cities shown above. value of sales of all reporting firms in each line of business was as follows: Four Months Ending Apr. April, 1923, 30,1923, corncompared with pared with Number April, Mar., same period of Firms 1922 1923 in 1922 Agricultural Implements Automobile Supplies___ Autom obile T ir e s ............ D r u g s .................................... Dry G oo d s.......................... Electrical E quipm ent... Furniture ............................ Groceries ............................ Hardware ........................... Shoes .................................... Stationery .......................... 23 20 22 10 15 6 16 29 21 14 29 4.1 29.9 20.0 15.9 26.5 31.9 39.1 35.0 37.3 19.0 19.3 — 12.9 20.8 — 13.4 — 11.2 — 12.7 — 3.7 .4 18.5 — 2.3 — 10.2 — 3.9 25.8 25.7 45.4 10.3 29.2 30.8 39.0 19.7 40.5 20.4 21.2 The general level of wholesale prices has ad vanced during the past year, the all commodi ties index of the United States Department of Labor having risen from 143 in April, 1922, to APRIL PRICES 1922 «10096» U.S.6UREAU OF LABOR INDEX NO. WHOLESALE PRICES AGRICULTURAL IMPLEMENTS APRIL I9ZZ SALES M! 1IMI 111 Ml 1ImI w~ A U T O M O B IL E S U P P L IE S ' : AUTOMOBILE T I R E S MILLIONS OF DOLLARS DRUGS DRY G O O D S # i 1 t t 1 t t s ^ \ / C G R O C E R IE S / \X 2 / 0 20 40 60 80 100 120 140 160 // ' ' . y * Dollar Value of Sales of Representative Wholesale Firms and General Wholesale Prices in April, 1923. compared with April, 1922 V li L 'T 1 i 1 i“ T 1 1 7 • 1 n Net Sales of 31 Department Stores in Twelfth Federal Reserve District (in Millions of Dollars) Wholesale Trade In April, for the sixth consecutive month, the value of sales in all reporting lines of wholesale trade was greater than in the cor responding month a year ago. In four of the eleven lines the increase was over 30 per cent and in ten lines over 15 per cent. The total value of sales of all reporting firms during April, 1923, was 28.3 per cent greater than dur ing April, 1922, amounting to $26,942,998 this year compared with $20,984,328 last year. The percentage increase or decrease (— ) in the 1 S T A T IO N E R Y \ I9 2 - / 1 SH O ES / A J H ARDW ARE 1 / 1923 J F U R N IT U R E 159 in April, 1923, an increase of 11.1 per cent. After making allowance for this advance in prices it appears that the physical volume of business transacted by wholesale firms in at least 10 of the 11 reporting lines during April of this year was greater than one year ago. Although it is not clear whether sales of agri cultural implements, the one excepted line, were greater in physical volume in April, 1923, than in April, 1922, it is evident from the fig ures appearing above that sales in this line during the first four months of the year were considerably greater in both value and volume than one year ago. Collections during the past three months have been reported as follows: Number of Firms Reporting Collections as Excellent Good Fair Poor February, 1923.................... 3 March, 1923.................... 5 April, 1923.................... 7 42 53 50 74 69 74 11 13 10 76 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S A u t o m o b ile R e g is tr a tio n s A comparative statement covering the first quarter of the years 1922 and 1923 showing the total number of new motor vehicles registered in five states of this district, as distinguished from motor vehicles purchased in previous years and registered again during the current year, is presented in the accompanying table. It shows a large increase in the number of new automobiles registered (sales of new automo biles) during 1923 in every state for which figures are available. The gains in Arizona, Idaho, and Oregon have been particularly notew o rth y . T o... New Passenger Cars Registered Jan. 1, to April 1. 1923 1922 Arizona ................. 2,026 California ............ 51,273 Idaho ..................... 1,321 O r e g o n .................. 7,106 Utah ....................... W a s h in g t o n ........ 584 25,827 457 2,392 1,451 753f Total .................. 63,930 t 429f 29,689 T o,.. New Commercial Cars Registered Jan. l t to April 1, 1923 1922 136 5,078 116 197* Percentage Increase or Decrease (—) in the Number and Value of Building Permits April, 1923, compared with April, 1922 Mar. 1923 Number of Permits Issued ........... 15.4 Value of Permits Issu ed................ 17.3 — 5.2 — 11.8 Considered geographically the reports for April, 1923, show an increase in the number of permits granted in 12 of the 20 cities, while the value of construction involved was greater in 13 cities. The United States Bureau of Labor’s index of prices of building materials at wholesale ad vanced 3 per cent during April and is now 30.7 36 3,024 70 138 141 357f 6,025 than in April, 1922. Comparisons with April, 1922, and March, 1923, are made in the follow ing table: * t 3,268 *January 1st to M arch 1st. tjan u a ry figures only. $N ot available. N ot e : Figures on registrations o f new automobiles in the states of the district will appear regularly in the review, in the be lief that registrations o f new automobiles may afford a reliable index o f changes in the purchasing power of the com munity, and indirectly, at least, o f general business conditions. National production of passenger automo biles and trucks during March, 1923, the latest month for which final figures are available, was the largest of any month on record, ex ceeding the previous record month of June, 1922, by 22.8 per cent. The following produc tion figures collected from manufacturers rep resenting over 90 per cent of the national out put have been compiled by the Federal Reserve Bank of Chicago: Production Mar., 1923 Per Cent Increase Mar.. 1923, over Mar., 1922 Mar., 1922 Passenger C ars— T r u c k s ...................... 319,527 36,786 152,625 19,369 109.3 89.9 Total ..................... 356,313 171,994 107.1 Preliminary estimates of production during April, 1923, indicate that the March record has already been broken. Output during April is at present placed at 343,698 passengers cars and 36,674 trucks. Building Activity Building activity, as reflected in the number and value of building permits issued in 20 cities in this district during April, 1923, re ceded from the record level of the previous month, but was greater by at least 15 per cent Building Permits Issued in 20 Principal Cities, Twelfth Federal Reserve District, 1922-1923 (B) Building Permits— April, 1923 No. Value 173 98 235 350 3,983 772 34 284 43 1,366 409 954 107 1,105 346 Spokane ........ 129 Stockton -----408 Tacom a .......... 525,925 40,052 492,543 2,260,272 15,352,944 2,135,488 185,800 968,526 135,200 2,523,330 32,720 699,047 570,028 846,480 5,173,801 332,810 2,141,385 318,685 407,600 280,703 305 138 395 766 85 973 408 150 388 430,200 73,347 641,474 2,475,597 12,959,686 1,850,160 97,360 961,396 91,590 1,865,970 66,500 532,303 330,270 821,446 3,993,720 341,310 1,632,175 359,190 379,643 291,715 12,661 $35,423,339 10,966 $30,195,052 Berkeley ........ Fresno ........... Long B ea ch .. L o s A n g ele s. . Oakland ........ Ogden ............ Pasadena . . . . Phoenix ......... Portland ........ 173 132 152 504 5,094 859 62 285 64 1,357 20 Sacramento .. Salt Lake City San D ie g o -----San Francisco. San Jose.......... 301 200 $ April, 1922 No. Value 20 $ FEDERAL RESERVE A G E N T A T S A N FRA N C ISCO per cent higher than one year ago. Certain figures from this series are given herewith (1913 prices equal 100) : Peak—April 1920 April. 1922 March, 1923 April, 1923 300 156 198 204 Actual price quotations on March 1, 1923, and March 1, 1922, for some of the principal building materials are compared in the followta b le : -----------Prices----------- - Commodity March, 1923 Brick, common red, per 1,000, New York .....................................$20.00 Cement per bbl. f. o. b. plant, Indiana 1.75 Douglas Fir, 1x8, per M ft. f. o. b. mill, Washington ..................... 21.25 White Lead, American in oil, per 100 lbs., New Y o rk ......................... 13.40 Linseed Oil, raw per bbl., New York 1.04 Quartered Oak, white, Indiana, per M ft., New Y o rk....................... 163.50 Structural steel beams per 100 lbs. Pittsburgh .............................. 23.90 March, 1922 $17.30 1.50 In interpreting the figures presented in table “ C” and in the accompanying chart, allowance must be made for advances in the price level during the past year, which would result in an increase in the number of dollars necessary to transact a given volume of business. Since April, 1922, wholesale prices (according to the United States Department of Labor) have in creased 11 per cent. Inasmuch as debits to in dividual accounts increased 21.4 per cent dur ing the same period it would appear that the physical volume of business transacted in the district during April, 1923, was greater than one year ago. 11.75 MILLIONS OF DOLLARS 12.30 2800 .86 166.00 2600 k 13.90 A W ages in the building industry have been \ 2 4 00 \ ' “ i advancing, and are now reported to average be \ I tween 80 and 90 per cent higher than in 1914. No reports of actual abandonment of construc \ tion work in progress on account of present 2200 costs have been received from this district. V , Cement manufacturers report that buyers have > .v / ' \ • begun to place duplicate orders for their 2000 \ \ ! \ I cement supplies, and that in some cases they \ 1 are contracting for cement far in excess of \ 1 \ t 1800 \1 their needs in an attempt to secure speculative V profits. A similar situation arose in 1920. The manufacturers point out that unless buyers limit their purchases to their actual needs a Debits to Individual Accounts fictitious shortage of cement might develop. 1 L .................... in S 77 t / sN * / / /_ / ✓/ ✓ V ____ _____ in 20 Principal Cities, Twelfth Federal Reserve District. 1922-1923 Bank Debits The volume of business transacted in this district during April, 1923, as reflected by debits to individual accounts in 21 principal clearing house centers, was 20.5 per cent greater than in April, 1922, and 1.1 per cent less than in March, 1923, the latter decline be ing a seasonal movement. This is the twelfth consecutive month during which bank debits have been greater than in the corresponding month a year ago. The percentage increases in March and April, 1923, have been greater than in any of the previous 10 months. The course of bank debits since 1919 is roughly indicated by the figures for 20 cities for the month of April in that and succeeding years. They totaled $1,497,486,000 in 1919, advanced to $2,181,702,000 in 1920, declined to $1,874,042,000 in 1921, and have since advanced to $2,316,390,000, the figure for 1923. An increase from year to year, due to the growth of the com munity, is expected. This normal movement appears to have been resumed. (C) Bank Debits*— Four weeks ending May 2, 1923 Berkeley ........................ $ Boise ............................................... Fresno ............................................. Long Beach .................................... Los Angeles ................................... Oakland ........................................ Ogden ............................................. Pasadena ....................................... Phoenix ......................................... Portland ......................................... R e n o ................................................. Sacramento ................................... Salt Lake City ............................. San D ie g o ...................................... San Francisco ............................... San Jose.......................................... Seattle ............................................. Spokane ......................................... Stockton ....................................... Tacoma .......................................... Yakima .......................................... 16,180 11,330 43,745 54,932 652,127 119,680 30,116 30,845 16,600 152,417 9,010 34,640 59,219 40,718 764,428 22,782 159,296 45,838 22,233 37,186 9,668 Total .......................................... $2,332,990 *000 Omitted. Four weeks ending May 3,1922 $ 15,211 9,724 46,507 27,920 459,227 81,600 16,312 24,891 14,925 129,900 8,718 59,473 50,963 40,155 682,862 17,780 141,557 41,278 20,801 34,809 10,773 $1,935,386 M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S 78 Savings Accounts Business Failures The total amount in all savings accounts as reported by 74 banks in seven principal cities increased six-tenths of 1 per cent during the month ending April 30th, being on that date $890,921,000 compared with $885,590,000 on March 31st. Increases as compared with the previous month were shown in Los Angeles, Portland, and Seattle, and small decreases in Oakland, Salt Lake City, San Francisco, and Spokane. Savings accounts are now at the highest point in the four years for which rec ords have been kept by this bank. They are 17.1 per cent greater than they were on April 30,1922, and 56.2 per cent greater than on April The number of business failures in this dis trict during April, 1923, was smaller than in any month since September, 1922, and 19.0 per cent below the monthly average number re ported during the year 1922. There were 149 failures recorded during the month with liabili10 ^ t\ t ' NO 250 OF rA I L U R E s ' / \ / V A V" ' t r\ *\ / ' \ V/ « 200 \ 150 V \ A V 1 100 s/V IL IT IE S J __ 1__ L. J __ I ,_.l. 1 1 .1 1 J 1_J 50 L...I. . 1 J __ L_. ! ..u.l__ J.. 1 1922 MILLIONS OF DOLLARS IOOO 1923 Business Failures, Twelfth Federal Reserve District, 1922*1923 TOTAL ties of $2,539,207. Compared with figures for April, 1922, the report for April, 1923, shows a decrease of 16.7 per cent in number and an in crease of 33.0 per cent in amount of liabilities involved. A similar comparison of the April, 1923, figures with figures for March, 1923, shows a decline of 29.0 per cent in number and an increase of 15.8 per cent in liabilities of failures in the later month. R. G. Dun & Company’s comparative figures of the number and liabilities of business fail ures in the states of this district follow : 500 400 300 200 100 50 40 30 S A LT L A K E Arizona .......... California . . . . !! C IT Y i i J — I__ 1__ L.1.. L — 1__ 1 M 1 I 1922 I__ I 1 I I I District . . . . 1923 Savings Accounts in Banks in Seven Principal Cities of the Twelfth Federal Reserve District, 1922-1923 4 42 9 51 , 149 $2,539,207 210 $2,192,789 Number of Reporting Banks 10 Government Financing 30, 1919. Detailed changes in the amount of savings deposits reported by 74 banks in the seven cities follow : Pcr Cent Increase or Decrease (—) April 30,1923. compared with April30,1922 Mar.31,1923 13 25.9 ............... 6 Portland ................. Salt Lake C ity -----San F r a n c is c o .... 9 12.6 2 1.1 8 5.4 16 16 11.8 21.8 6 17.5 — 1.2 — .1 1.4 — 1.8 2.5 — 2.0 74 17.1 .6 .6 *Th e number o f banks in Oakland has been changed from seven to six, due to the consolidation o f two banks which formerly reported separately. 94 17 13 35 Utah ................. . . W ashington .. . . Seattle ..................... Spokane .................. 73 $1,022,092 153,386 15,100 404,773 45,427 552,011 . 10 A n g e le s.......... March. 1923 Liabilities No. 10 1 SPO KANE Oakland5“ April, 1923 No. Liabilities $1,015,054 180,293 3,596 130,789 221,974 987,501 20 L os NO. OF FAILURES LIA B ILIT IES IN M ILLIO N S On May 7th the Treasury Department an nounced an offering of Treasury Notes desig nated as Series B-1927, dated May 15, 1923, and maturing March 15, 1927. The notes will bear interest at the rate of 4 ^ per cent per annum. They are not subject to call for re demption before maturity. The offering was for $400,000,000 or thereabouts, sales to be effected for cash and in exchange for Victory Notes of the 4 % per cent series. Subscription books for the limited cash offer ing of notes were closed on May 12, 1923, and books for the exchange of 4^4 per cent Victory Notes on May 16, 1923. Total subscriptions received amounted to $1,234,570,000, of which $947,900,500 were cash subscriptions and $286,669,900 were exchanges of 4^4 per cent Victory FEDERAL RESERVE A G E N T A T S A N FRANC ISCO Notes. Exchange subscriptions were allotted in full and allotments on cash subscriptions amounted to $382,052,900, making total allot ments for the issue $668,722,800. In this dis trict total subscriptions amounted to $77,523,500 of which $33,831,800 were allotted. Ex changes included in the total subscriptions allotted in this district amounted to $10,701,800. According to the announcement of the Sec retary of the Treasury this offering practically completes the refunding of the Victory Loan and other short dated government debts amounting to approximately $7,500,000,000. On April 30, 1921, the gross public debt, on the basis of daily Treasury statements, amounted to approximately $24,000,000,000, including the aforementioned short dated debt mostly matur ing within about two years. By June 30, 1923, it is estimated that the gross debt will have been reduced to about $22,400,000,000. In place of the short dated debt of $7,500,000,000 matur ing in two years, there will be a new class of short dated debt amounting to approximately $5,500,000,000 and maturing over a period of about five years, up to the time of the maturity of the Third Liberty Loan in 1928. The Treasury Note issue of May 15, 1923, Series B-1927, together with the balance of nearly $400,000,000 previously in the Treasury, will provide for the payment of outstanding Victory Notes amounting to approximately $830,000,000. 79 February, 1922, when member bank loans be gan the present upward movement, the princi pal part of the recent increase was in the item “all other loans, largely commercial.,, On May 9, 1923, this figure was $809,000,000, 2.5 per cent above the figure for April 11, 1923, 10 per cent above that of January 3, 1923, and 20 per cent above the low point of February 8, 1922. Investments of reporting banks declined but $2,000,000, or one-half of 1 per cent, during the four-week period ending May 9th, and total loans and investments were increased by ap proximately the amount of the increase in loans. The combined total now stands at $1,359,000,000, a figure $28,000,000 or 2 per cent above the highest point reached in 1920. Total deposits, as a result of a decline in time de posits, were $15,000,000 lower on May 9th than MILLIONS OF DOLLARS Banking and Credit Situation Expansion of loans of reporting member banks in the principal cities of the district con tinued during April and the first week of May 100 50 M I L L I O N S O F D O L LA R S B IL L S P kYABLE A MO R E D Ii C O U N T S W IT H F E D E R A t f E S E R V E B A N K ,,, 1 ...L __ «— J— J L i__ L„_, __ !.. 1— 1922 ...1 »... ...L - i ■ J__ L.. 1923 Total Deposits, Loans and Discounts, Investments, and Bills Payable and Rediscounts of Reporting Member Banks Total Reserves, Federal Reserve Note Circulation, Bills Discounted, and Investments, Federal Reserve Bank of San Francisco so that on May counts of the 66 compared with weeks previous. 9th the total banks stood $971,000,000 As has been loans and dis at $991,000,000 reported four the case since on April 11th, and the ratio of total deposits to total loans and investments stood at .966 com pared with .991 on the earlier date. A t the peak of credit expansion in 1920 this ratio was .882. During April country banks increased their borrowings from the Federal Reserve Bank for the first time since November, 1922. They are now rediscounting paper amounting to $22,000,000 compared with total borrowings of $18,000,000 one month ago. City member banks, principally those in San Francisco, also in creased their borrowings from the Federal Re serve Bank, and total rediscounts stood at $65,000,000 on May 9th compared with $53,000,000 on April 11th. The figure for May 9th is the largest reported since January, 1922. The decline in Federal Reserve Note circula tion, which had proceeded steadily since the M O N T H L Y R E V IE W OF B U S IN E S S C O N D IT IO N S 80 first of the year, was checked, temporarily at least, during the past month. After declining from $196,796,000 on April 18th to a low point of $196,294,000 on April 25th, circulation in creased to $205,000,000 on May 16th. The latter figure may be compared with an average circu lation of $220,000,000 during the year 1922. A slight easing of interest rates, partly due to seasonal causes, was apparent during the month. In the New York market the rates on prime commercial paper and on time money declined by one-quarter of 1 per cent between April 14th and April 28th, and remained at the lower figures, 5 per cent for commercial paper and 5 % per cent for time money, during the week ending May 12th. A further decline in the rate for time money was reported during the week ending May 19th, the average for the week having been 5*4 per cent. The average rate charged by San Francisco banks on cus tomers’ prime paper was steady at S y 2 to 6 per cent. Increasing activity in the acceptance market was reported during the first two weeks of May, both country and city banks entering the market for short term bills. Rates, which had advanced from 4 *4 to 4 % per cent during the latter part of April, declined to 4 *4 per cent as the demand became more active. Reports re ceived by this bank from 35 of the principal accepting banks of the district show the fol lowing changes in the amount of bills pur chased and accepted during April, 1923, com pared with March, 1923, and April, 1922: April, 1923, compared with April, 1922 Mar., 1923 10.6 Am ount of bills accepted ............ 124.6 Am ount of bills bought ................ — 14.1 Am ount of bills held at close of — 38.3 63.7 — 23.5 The principal commodities upon which these acceptances were based were sugar, wheat, raisins, and coffee. PRINCIPAL RESOURCE AN D LIA B IL IT Y ITEM S OF REPORTING M EM BER B A N K S IN RESERVE CITIES IN TW E L F T H FEDERAL RESERVE D ISTRICT May 9.1923 Number o f Reporting Banks .......................... ............. 66* Loans and Discounts (including rediscounts)...................................... $ 991,029,000 Investments ............................................................................................................. 367,538,000 Cash in Vault and with Federal Reserve B ank.................................... 116,426,000 Total D eposits........................................................................................................ 1,312,789,000 Bills Payable and Rediscounts with Federal Reserve Bank........... 43,428,000 April 11,1923 May 10.1922 66* 68* $ 970,893,000 369,435,000 111,048,000 1,328,106,000 35,310,000 $ 847,920,000 314,995,000 99,741,000 1,150,961,000 12,397,000 ^Mergers have reduced the number o f reporting banks, but comparisons o f resource and liability items have not been affected. C O M P A R A TIV E ST A T E M E N T OF CONDITION OF F E D E R A L R ESER VE B A N K OF S A N FRANCISCO A T CLOSE O F BUSINESS, M A Y 16, 1923 RESOURCES April 18. 1923 May 17. 1922 Total Reserves........................................................................................................ $246,869,000 Bills Discounted..................................................................................................... 66,246,000 31,062,000 Bills Bought in Open M arket....................................................................... United States Government Securities........................................................ 27,596,000 May 16.1923 $229,877,000 58,749,000 37,267,000 27,617,000 $262,490.000 45,986,000 10,285,000 60,009,000 T otal Earning A s s e ts ......................................................................................... $124,904,000 A ll Other R esources*......................................................................................... 55,408,000 $123,633,000 55,528,000 $116,280,000 49,767,000 T otal Resources................................................................................................. $427,181,000 $409,038,000 $428,537,000 Capital and Surplus..............................................................................................$ 23,066,000 Total D eposits........................................................................................................ 157,493,000 Federal Reserve N otes in Actual Circulation........................................... 205,266,000 A ll Other Liabilitiesf......................................................................................... 41,356,000 $ 23,040,000 148,996,000 196,796,000 40,206,000 $ 22,581,000 143,371,000 224,987,000 37,598,000 T otal Liabilities..................................................................................................$427,181,000 $409,038,000 $428,537,000 42,350,000 38,743,000 43,042,000 32,050,000 L IA B IL IT IE S ♦Includes “ Uncollected Item s” ..................................................................... flncludes “ Deferred Availability Item s” .................................................. 43,124,000 39,724,000 Those desiring this review sent them regularly will receive it without charge upon application.
@FedFRASER