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MONTHLY REVIEW
OF
BUSINESS CONDITIONS
JOHN PERRIN, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco
^ Vol. VIII
San Francisco, California, November 20,1924
Summary of National Conditions
Production of basic commodities and factory
employment showed further increases in Oc
tober, and distribution of merchandise was in
large volume. The general level of wholesale
prices advanced, reflecting largely a rise in the
prices of agricultural products.
Production. The Federal Reserve Board’s
index of production in basic industries, ad
justed to allow for seasonal variations, in
creased 6 per cent in October, and was 16 per
cent above low point of midsummer, though
still considerably below the level of the early
months of this year. Output of iron and steel,
cotton and woolen textiles, lumber, and bitu
minous coal was substantially larger than the
month before. Factory employment increased
2 per cent in October reflecting larger working
forces in most of the manufacturing industries.
Building contract awards increased and were
14 per cent above a year ago.
No. 11
Crop estimates by the Department of Agri
culture in November showed increases in the
expected yields of corn, cotton, tobacco, and
potatoes. The movement of crops to market
in October reached the largest volume in five
years, and exports of grain and cotton were in
greater volume than in the corresponding
month of any recent year.
Trade. Railroad freight shipments were
larger in October than in any previous month
owing to exceptionally heavy loadings of mis
cellaneous merchandise and grain. Wholesale
trade increased slightly but was 3 per cent less
than in October, 1923. Sales of dry goods,
shoes, and hardware were considerably smaller
than a year ago, while sales of groceries and
drugs were larger. Department store sales
showed a seasonal increase but were 4 per cent
less than last year, and sales of mail order
houses and chain stores also increased and
were in greater volume than in 1923. In prep
PER CENT
Production in Basic Industrie«
Index of 22 basic comx&oditim corrected for seasonal variation (1919=100).
Latest figure. October. 109.
Wholesale Prices
Index of U. S. Bnreauof Labor Statistics (1913=^100. base adopted by Bureau).
Latest figure. October. 152.
Those ¿cabin* this review sent them regularly will receive it without charge upon application.
142
N ovem ber, 1924
MONTHLY REVIEW OF BUSINESS CONDITIONS
aration for Christmas trade, stocks of merchan
dise at department stores increased substan
tially and were 2 per cent larger than a year
ago. a
Prices. The wholesale price index of the
Bureau of Labor Statistics rose 2 per cent in
October as a result of considerable advances in
the prices of farm products and foods and slight
point since the early part of the year. Money
in circulation increased in October for the
third successive month, and the total on No
vember 1 was $215,000,000 larger than in
August. Money rates continued to show a
firmer tendency and by November 23rd were
generally from
to
of one per cent higher
than in October.
PER CENT
1919 1920
Factory Employment
Index for 33 Manufacturing Industrie# (1919=100). Latest fifure, October, 91.5.
1921 1922 1923 1924
Member Bank Credit
Weekly figures for member banks in 101 leading cities. Latest figure, November 12.
increases in the prices of clothing and chemicals. Summary o f District Conditions
Fuel and metal prices declined, and prices of
The upward trend of business activity,
building materials and house furnishings were
practically unchanged. During the first half interrupted during September, was resumed
of November quotations on all grains, cotton, in October. The improvement was moderate
silk, copper, and rubber advanced, while prices and minor movements contrary to the gen
eral trend were present, but the total volume
of raw sugar and bituminous coal declined.
Bank Credit. Loans for commercial pur of business transacted in the district was
poses at member banks in leading cities, which noticeably larger than in the previous month.
had increased rapidly from the beginning of This appraisal of the situation is borne out by
September to the middle of October, advanced figures of debits to individual accounts (bank
only slightly in the following four weeks. The debits) at 20 principal clearing house centers,
growth of loans secured by stocks and bonds an excellent measure of general business condi
was also relatively small, notwithstanding tions. The total of reported bank debits was
great activity in the securities market. Hold 10.5 per cent larger in October, 1924, than in
ings of investments by these banks continued September, 1924, and but 1.9 per cent smaller
the increase which began in the early months than in October, 1923, when greater than nor
of the year. A large part of the increase in mal business activity was reported. The Octo
demand deposits during the four weeks ending ber, 1924, figures, corrected for seasonal varia
November 12th, when they were higher than tion and year-to-year growth, approximated an
at any previous time, was in bankers' balances, estimated normal for the month and year.
Steady marketing of the district’s crops, gen
indicating a continued movement of funds to
the large centers. At the reserve banks an in erally at prices above those paid in recent pre
crease in earning assets was the result of larger vious years, has contributed greatly to the im
offerings of acceptances, reflecting firmer provement in the business situation. The rise
money conditions. While discounts and hold in prices of farm products during the period of
ings of United States securities remained prac heavy sales following the harvest did much to
tically unchanged during the four weeks end offset the effect of the smaller than average
ing November 19th, the increase in acceptances crops and encouraged prompt sale of the yields
carried total earnings assets to the highest which were secured.
November, 1924
FEDERAL RESERVE AGENT AT SAN FRANCISCO
Productive activity in the principal indus
tries of the district was well maintained during
October, although seasonal curtailment in some
lines caused a moderate decrease in the volume
of employment. The amount of building con
struction now under way is large, and so also
is the amount of building in prospect as shown
by the number and value of building permits
issued in 20 principal cities during October.
The totals for the month, excluding the figures
for Los Angeles, where a large decline occured,
were slightly above the record figures of Octo
ber a year ago. The value of building permits
issued in these cities during the first ten months
of 1924 has been but 5.0 per cent less than the
value of permits issued in the corresponding
period of 1923, and this despite the fact that the
cost of building was then higher. Lumber mills
of the district increased their output during
October, but sales were smaller than in the
previous month, partly the result of careful
buying and partly the result of a disposition
on the part of the mills to curtail sale com
mitments in anticipation of a rise in prices.
The mines of the district, particularly those
producing silver and lead, were active and
production of all the principal non-ferrous
metals continued at the high levels of recent
months. The Hour milling industry operated
at reduced capacity during the month, out
put of 16 reporting mills being less than the
five-year average for October and well below
the figure for a year ago. The rapid advance
of wheat prices during recent weeks and per
sistent sluggishness in the market for flour
have been the primary causes of curtailed out
put. Further declines in production of petro
leum were reported from California, average
daily output during October (603,115 barrels)
being smaller than during any month since
February, 1923, and 29.7 per cent below the
peak figure of September, 1923 (858,750 barrels
per day). Stored stocks increased by 483,896
barrels (0.5 per cent) during the month, pro
duction still being slightly in excess of con
sumption.
Wholesale trade reports for October showed
increased sales as compared with September
in practically all lines except agricultural im
plements, automobile supplies, and automobile
tires, products which normally experience a
decline in demand toward the close of the year.
Continuance of marked irregularity in the
wholesale trade situation is indicated, however,
by the many declines in value of sales as com
pared with a year ago, seven of the eleven re
porting lines showing decreases varying from
3.9 to 22.7 per cent. Trade at retail, although
exhibiting a greater than seasonal increase as
compared with September, 1924, was smaller in
value during October, 1924, than during Octo
143
ber, 1923. Stocks of reporting stores at the
close of October were slightly larger than in
the previous year and the indicated rate of turn
over for the month was less rapid than a year
ago.
A sharp and widespread upward movement
of prices took place in October, the index of
wholesale prices compiled by the United States
Bureau of Labor Statistics showing an increase
of 2 per cent for the month. The chief gains
were in the farm products* group which ad
vanced 4.2 per cent. Prices of the principal
products of this district, both agricultural and
non-agricultural, shared quite generally in the
advance.
The volume of member bank credit in use in
this district was at record levels during Octo
ber, but borrowings from the Reserve Bank
were smaller than at any time since 1917, and
interest rates were relatively low. Commercial
loans of 66 reporting member banks in princi
pal cities advanced from $819,000,000 on Octo
ber 8,1924, to $833,000,000 on October 22,1924,
the highest figure reported since January,
1921. These loans stood at $831,000,000 on
November 5, 1924. Total loans and invest
ments of the banks at $1,459,000,000 on Novem
ber 5, 1924, were larger than ever before. De
mand and time deposits of member banks have
increased in substantially the same proportion
as have their loans and investments and the
ratio of deposits to loans has increased slightly
during the past year.
Agriculture
Agricultural products of the district have gen
erally been in active demand during the autumn
marketing season, and prices have risen to
levels promising financial returns to growers
not far below those of years when crop yields
have been larger. Wheat prices in the Pacific
Northwest during the heavy marketing period
immediately following the harvest have been
higher than at any time since 1920, and com
mercial factors estimate that farmers already
have sold more than 75 per cent of the 1924
crop. Deciduous fruits (including apples) and
citrus fruits (except lemons) generally have
sold at higher prices than one year ago, the
market for most varieties of dried fruits has
been more active than in 1923, and surplus oi
carryover stocks have been greatly reduced.
Staple field crops, such as beans, cotton, pota
toes, and sugar beets, have been selling at
prices above those of one year ago in most
cases, and sales by producers have been large in
volume. Comparative data for measuring the
movement to market of certain crops of this
district during present and past seasons áre pre*
sented in Table “A.n Harvest returns have
confirmed previous reports of smaller yields oi
144
N ovem ber, 1924
MONTHLY REVIEW OF BUSINESS CONDITIONS
nearly all grain and fruit crops, and of the ma
jority of field crops, than were produced last
year. The United States Department of Agri
culture’s final estimates of crop production are
not yet available.
During the past month, practical completion
of the harvest of important crops and wide
spread autumn rains, accompanied by compara
tively mild temperatures, have enabled farmers
to utilize labor and equipment for fall plowing,
planting of winter grain crops, and other sea
sonal operations. Normal stands of fall-sown
grain are reported, and these crops are making
satisfactory growth in the winter grain-growing sections of the district.
be carried through the winter than was the case
a year ago, and that consequently feed require
ments of the district will be smaller than in the
winter of 1923-1924. As the result of prevailing
feed and market conditions during the past sea
son, some cattle raisers sold their entire herds
and have temporarily withdrawn from the busi
ness, while many others have retained less than
the usual number of animals for winter feeding.
The supply of hay and other feeds in areas
where winter pasture is not available is re
ported to be sufficient to carry the reduced
herds through the winter months. Condition
TH O U SAN D S
500
THOUSANDS OF CARLOADS
A
400
HEEP, *
" #
1
/r
t
1
1
a
200
IO O
1
1
1
i
300
1
1 J
i /
f
1
1
1
f
4
1*
w
t 1
1 f""
i
\
>
i
V
HOGg
V
fcCATl le &a iL V tS j
-L.1 _L 1 1 1 -L. I _L 1 J__I.. 1—1. JL 1-1
1 L _ J_ L JL-1 .L.
1 9 2 4
1 9 2 3
Receipt« of Livestock at Bight of the Principal Markets of the District
1923-1924. (L o t Angeles, Olden* Portland, Salt Lake City, Saa
Francisco, Seattle, Spokane, and Tacoma included)
(A) Movement o f Crops to Market*
C A L I F O R N I A F R U I T S H IP M E N T S
Cumulative totsis from month to month for the past two year*
T h e less abrupt rise of the lines for citrus fruits than those
for deciduous fruits shows that the movement of citrus fruits
is more evenly distributed throughout the season than is that of
deciduous fruits. Shipments of deciduous fruits began at about
the same time this year as last year, and have been of approxi
mately the same volume.
*Crop year begins November 1st and ends October 31st.
tC ro p year begins about M ay 1st and ends about A p ril 30th.
Livestock—Animal Products
T W E L F T H F E D E R A L R E S ER V E D IS T R IC T
1924-1925
Season to
Oct. 31,1924
1923-1924
Season to
Oct. 31.1923
1922-1923
Seaaoo to
Oct. 31,1922
9,250,935
(13.2) t
12,677,327
(8.9)
11 710,812
(11.9)
5,403,495
(29.1)
6,887,827
(14.9)
10,280,600
¿24.0)
45,780
(88.9)
50,868
(100.0)
29,591
(95.8)
13,262
(100.0)
8,740
(89.2)
9,926
(95.3)
California . . . (cars)
58,814
58,484
42,879
Total Deciduous
Fruit Shipments?
Pacific
Northwest (cars)
25,209
40,229
21,986
Wheat Exports^
Portland and Puget
S o u n d .......... (bu.)
Barley Exports
San Francisco (bu.)
Orange Shipments§
California . . . (cars)
Continued seasonal rainfall during October
and the first weeks of November stimulated the
growth of grass and browse on livestock ranges
and pastures in this district, and feed conditions
are now better than at any time since early in
the year.
In some sections range areas, hitherto inac
cessible to livestock because of the lack of
water, have been made available by the filling
of long-dry water holes. The movement of
cattle and sheep to winter range and to feed
lqts has been practically completed. It is re
ported that a smaller number of beef cattle will
Lemon Shipments§
California . . . (cars)
Total Deciduous
Fruit Shipments^
• Figure» in parentheses indicate percentage of new crop only.
tPercentage figures based on October 1st crop estimate.
{Season begin* J u ly 1st.
ISeacoa begin« Novem ber I s t
f Season begin* about M a y l i t .
November, 1924
figures of ranges, cattle, and sheep, expressed
in percentages of normal (normal = 100), for
the states of this district follow:
Range:
Oct.
Nov. 1.
1,
1924 1923 1924
A rizona . . . . . . 55
95
55
California . . . . 60
84
50
Idaho .......... , 55
97
52
N evada . . . . . 57
95
56
O regon
, . 64
93
59
65
90
U tah ............
64
66
W ashington . . 63
97
Catti*
Oct.
Nov. 1.
1,
1924 1923 1924
75
81
94
80
80
91
99
80
81
91
70
70
75
95
74
90
73
73
SO
76
95
t----- Sheep -----V
Oct.
Nov. 1,
1,
1924 1923 1924
78
82
93
82
82
93
82
98
81
73
98
73
76
97
78
79
79
94
89 100
87
Unusually large sales of cattle and a normal
seasonal movement of livestock to market dur
ing October are shown in the accompanying
table and chart of receipts at the chief markets
of the district. There were slight increases in
the number of calves and hogs marketed as
compared with September, and receipts of all
classes of meat animals were larger than during
October, 1923. Figures follow:
LIV ESTO CK R E C E IPT S A T
C attle
O ctober,
1924................. 113,168
Septem ber, 1924.................
89,408
O ctober,
1923................. 101,269
F our-Y ear A verage*
O ctober ............................
97,085
Septem ber ........................
73t692
E IG H T M ARKETS
Calves
Hogs Sheep
30,117
206,821 394,979
28,893
185,127 404,528
29,176
170,809 375,127
25,025
21,216
148,918
125,833
369,747
332,130
•1921*1924.
Butter production in this district continued
to decline seasonally during October. Holdings
of cold-storage butter at the principal butter
markets also declined during the month, but on
November 1st were 57.4 per cent larger than
one year ago and nearly twice as large as the
five-year average for that date. There was a
further seasonal decline in the holdings of coldstorage eggs during the past month.
C O LD STO RA G E H O L D IN G S O F B U TTE R A N D EG G S
Five-Y ear
Nov, 1,
Oct. 1,
Nov. l p
Average
B u tte r (pounds)
1924
1924
1923
Nov. lrtg
*12th D istrict.
5,524,632
7,016,888
3,508,888
2,944,371
U nited S tates. 135,251,000 153,494,000 76,472,000 86,113,000
E ggs (cases)
f l2 th D istrict.
U nited States.
145
FEDERAL RESERVE AGENT AT SAN FRANCISCO
253,537
5,295,000
389,462
7,409,000
333,047
6,645,000
t
5,135,000
•F o u r m arkets. tS ix m arkets. 51920-1924. $N ot available.
Prices
The general level of prices, which has tended
upward since June, advanced sharply during
October. The United States Bureau of Labor's
index number of wholesale prices at 152 (1913
prices = 100) was 2 per cent higher than in
September and 4.8 per cent above the mid-summer low point. Of particular significance was
the rise in price of farm products, which ad
vanced from 143 to 149, or 4.2 per cent, making
a total advance of 11.2 per cent since last June.
A rise of such proportions, particularly during
the period of heaviest marketing of farm prod
ucts, is unusual.
While the relative purchasing power of farm
products in general is now greater than at any
time since the war, one important agricultural
industry of this district, the cattle-raising in
dustry, is still suffering severely from price
mal-adjustment. Beef cattle, after four years
of unsatisfactory market conditions, are now
selling at less than pre-war prices, unfinished
and grass fat cattle bringing lower prices dur
ing the autumn of 1924 than in any year since
1912 (excepting possibly 1921). Beef cattle
purchasing power in terms of other commodi
ties is still less than 75 if 1913 purchasing
power be taken as 100.
Rising prices were reported for the majority
of the important farm products of this district
during October. Increases in prices of sheep,
lambs, wheat, wool, deciduous and citrus fruits,
and both canned and dried fruits were recorded.
Slight declines were noted for beef cattle, hogs,
cotton, and poultry and dairy products during
the month. Prices of the principal non-ferrous
metals produced in the district, except silver,
again advanced. Copper prices rose to the
highest point reached since March, 1924, and,
at 14 cents per pound on November 14th, were
approximately 7.0 per cent higher than one year
ago. The monthly average price for that metal,
however, was but fractionally higher during
October, 1924, than during September, 1924, or
(fi) Commodity Pria
Commodity
U nit
Wholesale Prices (U . S. Bureau of L a b o r) 1913=100...................................
Purchasing Power of Farm Products ( U . S. Department of Agriculture)
1913=100 ...............................................................................................................
Cattle (N ative B e e f). W eekly average price at Chicago................................ ... 100 lbs.
H o g s ..............................W eekly average price at Chicago................................. ... 100 lbs.
L a m b s .......................... W eekly average price at Chicago................................. ... 100 lbs.
Wheat .......................... Chicago contract price for December wheat............ ... bu.
W o o l ..............................Average of 98 quotations at Boston.............................. lb.
Cotton— M iddling Uplands— W eekly range of spot quotations at New
Orleans ............................................................................... lb.
Pnines . . . . . . . . . ___ Size 40/50 in 25-lb. boxes f. o. b. California............ ... lb.
Raisins ......................... Thom pson’s bulk in 25-lb. boxes f. o. b. California. Ib.
Copper .......... ...............Electrolytic, m onthly average at New Y o r k ............ ...lb.
L e a d ............................. M onthly average at New Y o r k .........................................lb.
Silver . . . . . . . . . . . . . . M onthly average at New Y o r k ........................................oz.
Lum ber (S o ftw o o d )..W e e k ly Index, U . S.#* ....................................................
*#1924 opening.
**As published b y the " L u m b e r Manufacturer and Dealer.”
N o v. 7,1924
One Month Ago
One Year Ago
152.0
149.0
153.0
91.0
$10.00
9.30
13.75
1.47^-1.5054
89.29*
87.0
$10.10
10.15
13.10
1.45*4-1.49
87.32#
75.0
$9.90
7.25
13.05
1 .0 6 ^-1 .0 7
74.28#
22.85-23.05#
24.50-25.75#
30.50-31.50#
.10 # -.1 1
.08 $4
12.57#
6.83#
63.65#
31.65
. 10-.1054
.0 7 ^ *
12.93#
8.24#
70.83#
30.14
5«
12.92#
8.00#
69.35#
29.86
146
October, 1923. Lead prices advanced nearly
one cent per pound during the month, under the
stimulus of a strong demand for that product,
and, at 9 cents per pound on November 14th,
were 28.5 per cent higher than one year ago.
Lumber prices changed little during October,
no general trend being apparent. Prices paid
producers of petroleum in California oil fields
have remained unchanged since February, 1924.
Details of price movements for certain im
portant products of the district and representa
tive index numbers of the general price level
are presented in Table “B.”
Industrial Activity
Declining activity in seasonal industries ob
scured the trend of industrial output during
October, but available data indicate that the
improvement of recent months continued.
A large volume of building construction is
still in progress. Building permit totals for
November, which in a measure forecast future
building activity, were seasonally smaller than
in September and, because of a 40 per cent de
crease in Los Angeles, were considerably below
the totals for a year ago. Less severe declines
than that experienced in Los Angeles were re
ported for several other cities in the district,
but the totals for 20 cities, excluding Los Ange
les, were slightly larger in October, 1924, than
in October, 1923. Cumulative figures for 20
cities for the first ten months of 1924 and the
first ten months of 1923 show declines of 2.5
per cent in number and 5.8 per cent in value of
permits issued during the later year. The
figures for the year 1923 were the largest ever
recorded.
Recent trends of activity in the building
industry in this district, as shown by monthly
and cumulative year-to-date comparisons of
building permit figures for 20 cities, are indi
cated in the following table:
October —
September
August
July
June . . . —
M ay . . . . —
A p ril
M arch . .
Feb-u ary
Ja n u a ry ..
Building Permit* Issued in 20 Principal Cities, Twelfth Federal
Reserve District» 1923-1924
(C) B uilding Permits—
Berkeley ..............
Boise ......................
Fresno ..................
L o n g Beach
Los Angeles
Ogden ...................
Pasadena .............
Portland ............... . .
Sacramento .........
Salt Lake C i t y . . .
San D ie g o ............
Saa Francisco . . .
S to c k to n ................
November, 1924
MONTHLY REVIEW OF BUSINESS CONDITIONS
October, 1924
Value
No.
353
$ 660,985
84,997
181,355
483
986,275
11,057,277
2,619,703
163,800
333
1,551,667
84
144,729
1,457
2,429,195
42,700
914,829
141
451,041
626
1,004,649
6,116,313
183,950
943
2,022,350
259,873
269,125
507,645
D is t r i c t ..............
$31,652,45ft
October, 1923
No.
Valoe
311
$ 1,224,225
80
32,448
228
1,392,081
489
2,336,695
6,632
20,541,872
1,275
2,759,208
34
47,100
436
1,062,362
71
217,424
1,679
2,136,360
17
26,710
364
448,897
125
481,955
535
1,318,147
909
3,793,374
119
207,100
976
1*219*270
283
183,892
164
323,700
413
275,636
15*140
$40,028,456
Month in 1924 compared
with same Month in
t------- ----------------- 1923--------------------- ;— ^
Monthly
Cumulative
No.
Valae
N o.
Value
19.5% — 20.1% — 2.5 % — 5.8%
1.4%
9 .6 % — 0.1 % — 3.9 %
0.2 % — 15.1% — 0.3 % — 5.4 %
5.5% — 3.4% — 0.4 % — 3.8 %
15.6% — 28.5%
0.5 % — 3.8%
12.6% — 18.7%
3.7 %
1.9%
2.2 % — 2 .4 %
8 .2 %
8 .1 %
1.5% — 2 .1 %
12.1%
12.1%
26.3%
18.5%
19.3%
22.5%
12.6%
27.0%
12.6%
27.0%
—
—
—
—
Month in 1924
compared with
preceding
Month
N o.
Value
4.3 % — 6.4%
10.1% — 1.5%
12.1%
11.4%
3.5%
9.3%
8 .9 % — 11.6%
11.5% — 7.6%
8 .7 % — 12.2%
11.0%
15.1%
5.1%
2.8 %
14.9% — 9.3 %
The United States Bureau of Labor Statis
tics' index of the cost of building materials
stood at 171 in both September and October,
1924, compared with 182 in October, 1923. The
general level of building materials prices in
the United States was therefore 6.0 per cent
lower during October, 1924, than during
October, 1923. The Aberthaw index of the
total cost of labor and materials employed in
the construction of a reinforced concrete fac
tory building stood at 195 during October and
September, 1924, compared with 200 on No
vember 1, 1923.
Lumber production, as reported by four asso
ciations whose members operate in this district,
increased during October. New orders re
ceived by the mills were less than shipments
on old orders which in turn were smaller than
production, so that the volume of unfilled
orders on the books of the mills declined and
stocks of lumber held by them increased. The
volume of mill stocks of lumber, however, is
reported to be relatively small. Figures follow
(000 om itted):
0*^1924
(band feet)
Production ........................ ..622,369
Shipments ........................ ..558^94
Orders ................................ ..523,433
Unfilled Orders ..............384,503
N o . of M ü ls Report»«.
I»
Sept, 1924
{boaidfeet)
608,746
562,598
558,489
407,900
190
Oct., 1923 Sept., 1923
(board feet) (board feet)
697,490
663,054
591,241
582,551
602,940
610,721
466,581
436,062
209
197
November, 1924
147
FEDERAL RESERVE AGENT AT SAN FRANCISCO
During the month domestic markets for lum
ber were sluggish, but foreign demand was rel
atively active. In the early weeks of November
the domestic market improved, while foreign
demand subsided slightly.
Ions on September 30, 1924. Figures for the
industry in California are presented in the fol
lowing tables:
P E TR O LE U M
Indicated
Average
Stored
Average
Daily ^
Stocks at
Daily
Consumption
End of
Production (Shipments)** Montbf
M IL L IO N S O F B O A R D F E E T
O ct.,
Sept,
Sept.,*
Dec.,
1924..
1924..
1923..
1923..
(barrels)
(barrel»)
(barrels)
603,115
610,274
858,750
706,427
587,505
585,521
95,030,777
94,546,881
t
89,274,244
t
t
New Wells —*
Daily
ProducNumber
don
Opened (barrels)
84
21,534
95
27,473
93
139,960
134
84,364
*Peak of production.
**These figures do not represent an actual reported consumption.
Th e y are derived by adding reported stocks held at the be
ginning of the month to production during the month, de
ducting from the sum of these two figures the reported
stocks held at the end of the month, and dividing the re
sultant by the number of days in the month.
tStocks (refined products excluded) held by the principal m ar
keting companies at all points in all Pacific Coast territory»
including British Columbia.
Comparable figures not available.
N o te : T h e American Petroleum Institute, Pacific Coast office,
from which source figures on the California petroleum industry
are obtained, changed its methods *>f compiling data of stocks,
beginning September, 1924.
t
Lumber Production* Orders Received« sod Shipment* in Twelfth
Federal Reserve District as Reported by Four Lumber
Associations, 1923-1924
Preliminary estimates for October indicate
that production of non-ferrous metals in this
district was maintained at the high levels of
recent months. Strengthening world markets
for silver and lead have stimulated mining op
erations and development work in regions
where production of these metals is of primary
importance. A steady foreign and domestic
demand for copper tended to stabilize the mar
ket for that metal during October and early
November, and prices advanced slightly.
Figures of national production of copper, sil
ver, and zinc during September and August,
1924, and September, 1923, follow :
N A T I O N A L P R O D U C T I O N O F N O N -F E R R O U S
Sept., 1924
Copper (lbs.) (mine pro
duction) ............................ 127,346,000
Silver (o z.) (commercial
bars) ..................................
5,457,359
Zinc (ton s) (s la b ).............
40,852
*As of the last day of the month at California refineries only.
Stocks held at distributing points are not included.
MILLIONS
M ETA LS
A n «.. 1924
Sept., 1923
133,140,000
125,289,025
5,491,372
41,775
GASOLENE
Sept., 1924 Aug., 1924 Sept.. 1923 A «* ., 19Z3
(rallons)
(callons)
( gallons)
(gallon«)
Refinery O utput. 102,118,190 99,955,286 103,618,605 109,165,919
Stored Stocks*.. 255,326,763 245,834,954 144,099,126 153,605,104
4,998,386
39,105
Figures for lead are not available.
Daily average production of petroleum in
California during October, at 603,115 barrels,
was smaller than during any month since Feb
ruary, 1923. Consumption of petroleum, as in
dicated by average daily shipments, increased
slightly during the month, but was still less
than production, and stored stocks at 95,030,777
barrels were 0.5 per cent larger at the close of
the month than at its beginning. A marked
increase in production of gasolene at Cali
fornia refineries at a time of seasonally de
clining consumption, resulted in an increase in
stored stocks of this product from 245,834,954
gallons on August 31,1924, to 255,326/63 gal*
Prodnction. Shipments, and Stored Stocks of Petroleum, and Refiner?
Stored Stocks of Gasolene in California, 1923*1924
Flour millers of the district increased their
wheat stocks seasonably during October, six
teen reporting milling companies enlarging
their holdings from 1,387,699 bushels on Octo
ber 1st to 2,919,099 bushels on November 1st.
On November 1, 1923, the same mills held
3,611,781 bushels of wheat, and their average
holdings on that date during the past five years
have been 2,889,209 bushels. Production of
flour at reporting mills increased during Octo
ber, 1924, but was less than in October, 1923,
148
N ovem ber, 1924
MONTHLY REVIEW OF BUSINESS CONDITIONS
or the five-year average for that month. The
greater part of the increased output went into
millers’ warehouses as the flour market, gener
ally, was relatively inactive during the month.
Figures for the 16 reporting mills follow:
Five-Year
Average!
Oct., 1923 Sept.,
Oct.
1924
Oct., 1924
O utput (b b ls.). ...
510,214
Stocks*
F lour ( b b ls .) ...
522,390
W heat (b u .) ----- 2,919,099
474,381
1,387,699
895,470
632,803
468,689
612,735
3,611,781
509,578
2,889,209
•A s of the first day of the following m onth. fl920-1924.
companying tables, compiled from reports of
20 companies operating in the several states of
the district. Total industrial consumption of
electric power was greater during September»
1924, than during September, 1923, the largest
percentage increase being in sales to agricul
turists. A decline of 2.9 per cent was reported
for September as compared with August, 1924,
seasonal decreases in use of power for agricul
tural and mining purposes more than offsetting
an increase of 5.2 per cent in sales to manufac
turing industries. Figures follow:
Percentage Increase or Decrease (— ) in Volume of Sale«
September, 1924» compared with September, 1923*
Total
Agricul
Manu Industrial
ture
Mining facturing
Sales
16.9
2.9
— 6.0
(— 10.6)
(— 7.5)
(4.1)
29.3
20.3
— 1.7
(— 21.2)
(5.3)
(1.1)
— 3.7
54.1
23.8
In term ountain S tates
(— 17.4) (— 19.5)
(32.9)
Tw elfth D istric t . . . .
17.3
6.9
1.1
(5.2)
(—8.1)
(— 11.2)
* Figures in parentheses indicate percentage increase o r
(—*) Septem ber, 1924, com pared w ith A ugust, 1924,
C a lifo rn ia ....................
Pacific N orthw est
;
Number and Distribution of Industrial Consumers and Actual
Volume of Sales
Number of
Industrial Consumers
Industrial Sales K . W . H .
Sept.,
Sept.,
Sept.,
Sept.,
1924
1923
1924
1923
/
f
/>
T H O U S A N D S OF B A R R E L S
900
:ksoffi .0\ > i
500
N
'v '
oui PUT OF •LOUR
California .................. 84,393
Pacific N orthw est . . 14,265
Interm ountain States
5,618
Tw elfth D istric t . . . 104,276
to o
O
1923
9.3
(— 0.3)
— 10.8
<— $.0)
7.6
(— 7.4)
4.8
(— 2.9)
decrease
1924
Monthly Floor Output, and Stocks of Wheat and Floor at End of Month
of 16 Reporting Milling Companies
The volume of employment in this district
declined slightly during October, a normal sea
sonal tendency. The principal declines were
in agriculture and fruit canning, although some
of the smaller industries contributed to the
movement. Employment in the district gener
ally continues below the levels of last year.
74,154
12,447
5,490
92,091
300,968,407
81,118,435
71,098,023
453,184,865
275,184,903
91,032,020
66,015,287
432,232,210
General Business and Trade
The volume of business transacted in this dis
trict during October was substantially greater
MILLIONS OF DOLLARS
E M P L O Y M E N T I N C A L IF O R N IA *
Percentage
Increase or
Decrease ( — )
N amber of
October
Employees
compared
No. of Sept.,
Oct..
with
Firms 1924
1924
Sept.
All Industries..
. 670 154,203 150,206
— 2.6
s 47
8,713
8,528
— 2.1
Metals, Machinery» and Convey'
a n e e s ..................................
161 35,517 35,511
— 0.01
111 27,971 30,001
7.3
Leather and Rubber Goods___
22
3,829
3,896
1.7
Chemicals» Oils, Paints, E t c ...
30 17,815 18,254
2.5
6,489
66
6,708
3.4
Textiles ..........................................
12
2,067
2,184
5.7
Clothing, M illinery, and Laun 7,746
63
7,743
— 0.03
141 33,996 27,823
— 18.2
W ater, Light» and Pow er.
3
8,902
8,359
— 6.1
Miscellaneous ......................
14
1,158
1,199
3.5
* Figures compiled b y California State Bureau of Labo r Sta
tistics.
Changes in consumption and distribution of
electric energy in the Twelfth District during
September, 1924, as compared with September,
1923, and August, 1924, are shown by the ac
Debits to Individual Accounts in 20
Reserve District,
^ C itie s . Twelfth Federal
than in September, but generally was below the
levels of a year ago, when business activity was
slightly above estimated normal.
Debits to individual accounts (bank debits)
at banks in 20 principal clearing-house centers.
November, 1924
149
FEDERAL RESERVE AGENT AT SAN FRANCISCO
The volume of trade at retail as indicated by
of this district (probably the best single avail
able index of general business activity) in the value of sales of 35 reporting department
creased 10.5 per cent during October, 1924, as stores in seven cities of the district, increased
compared with September, 1924, an advance 20.3 per cent during October, 1924, as compared
greatly in excess of that which usually occurs with September, 1924, but was less by 1.8 per
at this season of the year. Debits figures, al cent than during October, 1923. The increase
though 1.9 per cent smaller during October, as compared with the previous month was only
1924, than during October, 1923, were approxi partly due to seasonal causes. Stocks of re
mately normal for the month and year, the Oc porting department stores were 2.0 per cent
tober, 1923, figures having been almost 6 per greater in value on October 31, 1924, than on
cent above the estimated line of trend. Bank
debits at 21 centers of the district were 2.9 per MILLIONS OF DOLLARS
cent larger during the first ten months of 1924
1
than during the first ten months of 1923 (see 2 6
1
Table “D ”). (Figures for Phoenix, Arizona,
1
1
are not included in the total for 20 cities shown 2 4
1
in the chart on page 148.)
1
2 2
OCTOBER PRICES 1923*K)096fOCTOBER 1923 SA LES
1
I
1
1
#
2 0
U.S.BUREAU Of LABOR M ffX
NO. WHOLESALE PISCES
18
AGRICULTURAL M P LO O m
16
^
1924
AUTOMOBILE SUPPLES
19
14
AUTOMQMX THES
V
12
owes
v
/
IO
r
1
1
1
1
1
1
1
1
1
n
Net Sales ot 35 Department Store* in Twelfth Federal Reserve District
o
2o
40
eo
ao
too
120
140
Dollar Valne of Sales of Representative Wholesale Firm « and General
Wholesale Prices in October, 1924, compared with October, 1923
October 31, 1923, and the annual rate of stock
turnover during October, 1924, was 3.14, com
pared with 3.23 during October, 1923.
Reports received from retail furniture deal
ers in principal cities of the district showed a
decrease of 18.4 per cent in the aggregate value
of sales during October, 1924, as compared
with October, 1923. Sales of reporting retail
shoe dealers showed an increase for the year
amounting to 7.2 per cent.
Figures for the month of October show con
tinued irregularity in the wholesale trade situa
tion, aggregate sales of 136 firms in seven of
the eleven reporting lines having decreased as
compared with a year ago. Comparing figures (D) B ank Debits*—
t----------- O ctober------------\
of all lines over the year period, decreases were
larger and increases smaller during October Berkeley ........... $ 17,3101924$ 18,624 1923
than during September in seven reporting lines. B o is e .....................
13,474
13,777
.................
44,160
66,605
The percentage changes in the value of sales of LFresno
o n g B e a c h ....
46,104
64,934
reporting wholesale dealers during October, Los A n g e le s .... 748,228
770,469
121,593
1924, compared with one year ago and one Oakland .............. 124,088
Ogden .................
28,243
32,461
„„ .
month ago
follow:
p_
Pasadena ............
31,761
33,079
o
Percentage increase or
No. of
Firms
Agricultural Implements .................. 23
Automobile supplies .......................... 17
Automobile T i r e s .............................. . 2 0
D rugs ...................................................... 6
D ry Goods ............................................. 15
Electrical S u p p lie s ..............................
7
Furniture ................................................ 17
Groceries ................................................ 27
Hardware ................................................ 22
Shoes ....... ........ ...................................... 15
S tation e r y ..................... ......................... 28
*21 firms reporttef.
decrease ( — ) in the value
ot sales durinf Oct., 1924,
compared with
Oct., 1923 Sept., 1924
— 22.7
— 8.5
— 11.0
— 3.4
7.6
— 22.9
14.2
11.3
— 11.9
— 3.8
2.9
9.5
— 3.9
0.04
— 6.5
5.3
— 12.7
4.9*
— 16.1
0.5
4.2
3.3
Phoenix ..............
P o r t la n d ..............
Reno ....................
S a c ra m e n to -----Salt Lake C ity .
San D i e g o ..........
San Francisco
San Jose ............
Seattle ................
Spokane ..............
Stockton ............
Tacom a ..............
Yakim a ................
Total
23,866
195,394
8,035
39,636
70,831
46,988
857,026
30,920
194,145
52,348
22,888
40,045
15,356
22,230
196,792
11,203
43,880
67,198
43,245
849,907
27,058
182,264
57,619
26,773
38,869
12,897
............ $¿650,846 $2,701,477
*000 omitted.
t-------- Ten Months — —
1924
1923
$
174,934 $
169,931
114,998
124,824
327,230
501,127
517,492
588,900
7,411,143
6,906,894
1,242.234
1,217,627
231,748
280,548
325,378
312.370
204,639
186,095
1,622,084
1,534,631
79,747
101,519
437,307
426,423
628,893
616,836
482,938
455,677
8,091,583
7,860,787
226,031
224,29«
1,808,791
1,687,938
474,506
492,298
234,757
241,429
402,065
386,738
101,629
99,26S
*25,140,127 $24,416,203
ISO
N ovem ber, 1924
MONTHLY REVIEW OF BUSINESS CONDITIONS
A detailed statement of percentage changes
in the value of sales and stocks of reporting
department stores in the district follows:
Los A n g eles ..............
Oakland ......................
Salt Lake C it y ...........
San F ra n c is c o ...........
Seattle .........................
Spokane ......................
D is tr ic t* ......................
Percentage increase Percentage increase
or decrease ( — ) in
or decrease{— ) in
value of sales
value of stocks
Oct., 1924,
Oct., 1924,
No.
compared with
compared with
of
Oct.,
Sept.,
Oct.,
Sept.,
Stores
1923
1924
1923
1924
6
0.8
23.6
4.9
2.6
4
2.2
36.1
— 2.1
2.6
4
— 5.5
10.9
11.1
6.7
10
— 3.3
16.0
1.8
6.9
5
— 1.4
10.4
0.4
5.5
5
— 15.7
24.7
— 10.0
2.2
35
— 1.8
20.3
2.0
4.7
•Figures for one store included in district figures not included
in figures for cities shown above.
Registrations (sales) of new automobiles in
the states of this district (aa index of the
amount and availability of community purchas
ing power) were less by approximately 15.3 per
cent during the first nine months of 1924, than
during the first nine months of 1923. Figures
follow:
R E G IS T R A T IO N S O F N E W A U T O M O B IL E S
Arisons ............................
California .........................
Idaho ..................................
Oregon ..............................
U tah ...................................
Washington .....................
Passenger
Jan. 1 to Oct. 1,
1924
1923
7,913
7,779
134,927
168,961
9,229
7.464
26,011*
27,202
10,126
9,278
32,043
37,547
T o t al (6 states)........... 220,249
**Not available.
•Revised.
258,231
Commercial
Jan. 1 to Oct. 1,
1924
1923
869
678
12,374 18,195
967
547
1,816* 1,344
843
862
**
3,991
R. G. Dunn & Company’s preliminary figures
of the number and liabilities of business fail
ures in the states of this district during Octo
ber, 1924, and September, 1924, follow:
October, 1924
No.
Liabilities
A rizona ...........................
2
C alifornia ....................... 127
Idaho ...............................
5
O regon ............................ 36
Nevada ............................
0
U tah ................................
12
W ashington ................... 50
D istrict ....................... 232
$
15,532
2,433,929
97,872
158,150
0
555,920
258,015
$3,519,418
September, 1924
N o.
Liabilities
0
81
6
20
1
9
25
$
0
789,211
125,933
141,686
3,200
191,416
175,614
142
$1,427,060
Percentage increases or decreases (—) in
the number and liabilities of business failures
in the Twelfth Federal Reserve District follow:
Oct., 1924, compared with
Oct., 1923
Sept., 1924
N um ber of B usiness F a ilu re s ........................ 24.7
63.4
Liabilities of B usiness F ailu res....................—5.7
146.6
Banking and Credit Sitnation
Increased demand for credit during the four
weeks ended November 5, 1924, reflected chiefly
in increased commercial loans and in increased
loans secured by stocks and bonds, brought the
total volume of member bank credit in use in
this district to record levels. Commercial loans
MILLIONS OF DOLLARS
16,869f 21,626t
tTo ta l of five states (W ashington omitted).
Savings deposits in 71 banks in seven cities
of the district, at $1,022,166,000 on October 31,
1924, were 1.2 per cent larger than on Septem
ber 30, 1924. All cities, except Salt Lake City,
reported increases for the month. The October
figure is 9.5 per cent larger than the figure re
ported one year ago, an increase considerably
in excess of that which would have resulted
solely from interest accruals at prevailing rates.
Figures follow (000 om itted):
Per Gent increase
or decrease ( — )
Oct., 1924,
Number
compared with
Oct.,
Sept.,
Of
Oct.,
Oct., Sept.,
1924
Banks
1924
1923
1923
1924
Los Angeles . . 13 $ 334,506 % 324,851r $302,666r 10.5
3.0
Oakland* . . . .
7
96,350
95,847
89,806
7.3
0.5
Portland ......... 9
51,928
47,722
52,566
10.2
1.2
29,274
29,907
Salt Lake C ity 8
28,191
3.8 — 2.1
421,454
420,461 387,127
San Francisco! 14
8.9
0.2
69,271
S e a ttle f........... 14
68,147
60,743
14.0
1.6
18,745
Spokane ......... 6
18,485
16,285
15.1
1.4
T o ta lf ......... 71 $1,022,166 $l,009,626r$932,540r
9,5
1.2
•Includes one bank in Berkeley which was formerly a branch of
an Oakland bank.
tT h e consolidations of reporting banks have reduced their num
ber, but have not affected the value of reported figures for
comparative purposes,
rlfceviaed*
Total Deposits. Loans and Discounts. Investments, snd Bills Payable
and Rediscounts of Reporting Member Banks
of reporting member banks advanced during
October to $833,000,000, the highest figure re
ported since January, 1921. At $831,000,000 on
November 5, 1924, these loans were still $12,000,000 (1.5 per cent) larger than one month ago,
and approximately at the level of the previous
peak figure for the year reached iji May, 1924.
Loans secured by stocks and bonds (other than
United States securities) increased by $15*000,000 (7.8 per cent) during the month. An
November, 1924
151
FEDERAL RESERVE AGENT AT SAN FRANCISCO
increase of $10,000,000 in investments carried
this item to a peak of $410,000,000, and total
loans and investments, at $1,459,000,000 on
November 5, 1924, were also at record levels.
Demand and time deposits in reporting mem
ber banks increased substantially, both as com
pared with one year ago and one month ago.
Changes occurring in the principal items of
66 reporting member banks in this district dur
ing the month and during the year are pre
sented in the table below. Increases are indi
cated by plus, decreases by minus signs. The
figures are in millions of dollars, numbers in
parentheses indicating percentage changes.
Co nChange from
Change from dition
One Year
Nov. 5,
One Month
Ago
1924
Ago
Total Loans ................. . . + 27 ( 2 .6 % ) + 50 ( 5 .0 % ) 1,049
Commercial L o a n s ......... + 1 2 ( 1 .5 % ) + 29 ( 3 .6 % )
831
Loans secured by stocks
208
and bonds* .................. + 1 5 ( 7 .8 % ) + 23 (1 2 .4 % )
410
Investments ...................... + 1 0 ( 2 .5 % ) + 69 (2 0 .2 % )
816
Demand Deposits ........... + 3 4 ( 4 .3 % ) + 78 (1 0 .6 % )
660
Tim e D e p o s its .................. + 2 2 ( 3 .4 % ) + 114 (2 0 .9 % )
Borrowings from Federal
Reserve Bank ............... + 5 (1 25.0 % )
— 35 (7 9 .5 % )
Ratio of To ta l Deposits to
To ta l Loans ana Invest
102.9
96.3J
ments ............................. 101.81
•Other than United States Securities.
fR atio at close of business Oct. 8, 1924.
¿Ratio at close of business N o v. 7t 1923.
MILLIONS OF DOLLARS
4 0 0
vember 12, 1924, the Bank’s earning assets
were larger by $12,000,000 (13.5 per cent) than
on October 15, 1924. Total discounts declined
by $1,000,000 (7.7 per cent) during late October
and early November, increased borrowing on
the part of member banks in the principal cities
of the district having been offset by decreased
borrowing of member banks in rural districts.
Total discounts of the Federal Reserve Bank
have declined steadily throughout the present
year, and indebtedness of member banks to this
bank is now smaller than at any time since
shortly after this country entered the World
War in April, 1917. An increase in Federal re
serve note circulation and a decrease in reserves
reflected the growing demand for currency,
usually experienced at this time of the year.
Principal changes in the condition of the Fed
eral Reserve Bank of San Francisco during the
month and during the year follow (figures are
in millions of dollars) :
Change from
One Month
Ago
To ta l Discounts ................ — 1 ( 7 .7 % )
To ta l Investments ........... + 1 3 (1 9 .1 % )
Purchased Acceptances . + 1 2 (7 5 .0 % )
To ta l Reserves ..................— 9 ( 2 .9 % )
Total D e p o s its ............
2 ( 1.2% )
Federal Reserve Note
+ 2 ( 1 .0 % )
Circulation .............
Co nChange from dition
One Year
Nov. 12,
Ago
1924
— 45 ( 78 .9% )
12
+ 6 6 (2 8 7 .0 % )
89
+ 14 (1 0 0 .0 % )
28
— 9 ( 2 .9 % ) 2V7
+ 7 ( 4 .3 % ) 169
—
7 (
3 .2 % )
212
Interest rates advanced slightly during the
four weeks ended November 15, 1924, but were
still at relatively low levels on the latter date.
The persistence of low rates of interest during
a period in which loans and investments of
banks have been rising to record levels has been
one of the outstanding features of the business
situation during recent months. The follow
ing table shows weekly average interest rates
on various types of paper in the New York
market as reported by the Federal Reserve
Bank of New York:
3 0 0
20 0
too
1923
1924
Total Reserves* Federal Reserve Note Circulation, Bills Discounted,
and Investments, Federal Reserve Bank of San Francisco
An increase of $12,000,000 (15.8 per cent) in
holdings of acceptances purchased in the open
market (principal purchases made at New
York City) during the four-week period ended
November 12th brought total earning assets of
the Federal Reserve Bank of San Francisco
above the $100,000,000 mark for the first time
since January 9, 1924. At $101,000,000 on No-
Week
Ended
Nov. 15,
1924
3% - 3 & %
Commercial Paper . . . 3 X - 3 y 3%
Bankers’ Acceptances.
2% %
Week
Ended
Oct. 18,
1924
2 J 4 -3 %
3 -3 % %
2 Vk %
1923
Low
4^4 %
4*S%
3H%
Week
Ended
Nov. 17.
1923
S -5 % %
5%
4^%
The prevailing rate charged customers by
San Francisco banks on prime commercial
paper, such as is now eligible for rediscount un
der the Federal Reserve Act, increased from
5 per cent during mid-October to 5-5¿4 per cent
during mid-November.
@FedFRASER