The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY REVIEW
OF
B U S IN E S S
C O N D IT IO N S
ISAAC B. NEWTON, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco
Vol. X
San Francisco, California, November 20,1926
No. 11
S U M M A R Y O F N A T IO N A L C O N D IT IO N S
Industrial activity continued in large volume
in October, while the general level of prices
declined slightly. Despite a seasonal increase
in borrowing for commercial purposes, the
volume of bank credit outstanding has declined
in recent weeks, reflecting continued liquida
tion of loans on securities.
Production. Production in basic industries,
as measured by the Federal Reserve Board
index, which makes allowance for the usual sea
sonal variations, showed little change in O c
tober as compared with September. Textile mill
activity and the daily average output of iron
and steel was maintained during October, but
in the forepart of November there was a de
crease in steel production. Output of bitumi
nous coal was stimulated by export and bunker
demand and attained new high levels in O cto
ber and November. Petroleum production also
was large. There was a sharp decline in auto
mobile production in O ctober and output of
cars was smaller than in any month since
January.
The volume of building activity, as indicated
PER CENT
by reported value of building contracts
awarded, has declined for the past three
months, as is usual at this season of the year.
Throughout the period, it has been at a slightly
lower level than during the exceptionally ac
tive autumn season of 1925. Contracts for resi
dential structures have been smaller in volume
during recent months than during the same
period a year ago, while those for engineering
projects and public works have been larger.
Trade.
Distribution of commodities at
wholesale declined in October, contrary to the
usual trend for that month, and was in smaller
volume than in October of any year since 1922.
Sales of department stores showed the usual
seasonal growth in October, but owing partly
to less favorable weather conditions and partly
to a smaller number of trading days, were at
somewhat lower level than in the same month
of last year. Sales of mail order houses were
also smaller than a year ago. Stocks of mer
chandise carried by wholesale firms were
slightly smaller than a year ago, while depart
ment store stocks increased more than is usual
PER CENT
1922
1923
19 24
19 25
19 26
W H O L E S A L E PR ICE S
Index of 22 basic commodities corrected for seasonal variation
(1919=100). Latest figure, October, 122.
Index of U . S. Bureau of Labor Statistics (1913 = 100, base adopted
by Bureau). Latest figure,October, 149.7.
82
MONTHLY REVIEW OF BUSINESS c o n d i t i o n s
in September and O ctober and at the end of
O ctober were larger than in 1925.
Freight car loadings were of record volume
in O ctober and November, because of unusually
large shipments of coal and ore coincident with
continued heavy movement of other com m odi
ties.
N o vem ber, 1926
Bank Credit. Seasonal growth in loans for
commercial and agricultural purposes at mem
ber banks in leading cities has been accom
panied by continued liquidation of loans on
securities, with the consequence that the total
volume of loans and investments of these banks
in the middle of November was considerably
BILLIONS OF DOLLARS
2
I
Ri
TO TAL
’SE R V E BAH)
C R E D IT I
l
1
1
i
U.S.SECUR 1TIES
A
'
J
o is c o u r i T S FDR
MEMBE!
R BAN* ^ Y
S
"
;
/
J \
ÎCEPTANCES
1
1922
1923
1924
!I
1926
1925
M E M B E R B A N K C R E D IT
R E SE R V E B A N K C R E D IT
Monthly averages of weekly figures for banks in 101 leading cities.
Latest figures are for first three weekly report dates in November.
Monthly averages of daily figures for 12 Federal Reserve Banks.
Latest figures are averages of first 22 days in November.
Prices. W holesale prices of nearly all groups
of commodities declined in October and N o
vember. Prices of bituminous coal, however,
advanced sharply as the result of active foreign
demand caused by the British coal strike. R e
cently there has been some decline in coal
prices. The price of raw cotton, after falling
rapidly in September and early October has
been steady during recent weeks. Prices of nonagricultural commodities, as classified in the
Bureau of Labor Statistics price indexes, de
clined slightly between September and O cto
ber, while prices of agricultural products de
clined by about 2 per cent to the lowest level
since the summer of 1924.
smaller than a month earlier. A t the reserve
banks, decline in the volume of member banks'
credit has been reflected in a reduction of total
holdings of bills and securities to a level $37,000,000 below that of the corresponding date in
1925. Discounts for member banks were in
about the same volume as a year ago, while
holdings of acceptances and of United States
securities were smaller. Easier conditions have
prevailed in the money market in November
than in October. Rates on prime commercial
paper declined from 4 ^ -4 % Per cent in O cto
ber to Ay2 per cent in November. There was
also a reduction of % per cent in the rates on
bankers’ acceptances.
T W E L F T H F E D E R A L R E S E R V E D IS T R IC T C O N D IT IO N S
Statistical Sum m ary—
September,
1926
October,
1925
September,
1925
Bank Debits—21 cities* ............................................ $3,127,210 $3,004,429 $3,072,578 $2,779,033
Bank Debits—Index Numberst—20 cities...............
162
164
151
1490
Building Permits—20 cities .................................... $27,650,152 $26,317,852 $32,335,188 $31,826,926
Retail Sales—32 Stores—Index Numberst...........
158
171
153
158
Savings Deposits—68 banks*§ ................................. $1,209,664 $1,209,816 $1,128,3260 $1,130,7380
Lumber Production—4 associations—board feet*. .
790,376
687,592
777,106
726,098
668,759
Petroleum Production ΗCalifornia—barrels .......
611,808
603,498
645,648
475,456
484,831
512,120
Flour Production— 14 companies—barrels .............
512,685
Reporting Member Bank Loans and Discountsll*.. $1,295,015 $1,278,923 $1,188,910 $1,148,225
Reporting Member Bank DepositsII*...................... $1,684,618 $1,718,551 $1,629,595 $1,603,005
$50,308
$64,867
Federal Reserve Bank Discountsll*.........................
$50,890
70.5
72.4
Federal Reserve Bank Reserve Ratio ||....................
71.5
69.70
October, 1926H
compared with
Oct.,
Sept.,
1925
1926
1.8
7.3
— 14.5
0.0
7.2
8.9
— 5.2
0.1
8.9
3,4
1.2
1.4
4.1
- - 1.2
5.1
- - 7.6
0.0
1.7
1.4
5.7
1.3
- - 2.0
- -21.5
2.6
*In thousands. fAdjusted for seasonal variations— 1919 monthly average=100. $Daily average production. §Not comparable with
figures published in previous Reviews. ||November 17 and October 13, 1926, and November 18 and October 14, 1925. fíPercentage
increase or decrease (— ). QRevised.
N o vem ber, 1926
83
FEDERAL RESERVE AGENT AT SAN FRANCISCO
Agricultural Activities
Over most of the Tw elfth Federal Reserve
District, dry weather follow ed the rains of
early October, a condition favorable to the suc
cessful harvesting of crops which were still in
the field. Preliminary estimates of 1926 crop
production in the district indicate that total
yield of agricultural products was slightly
larger this year than last, and that, in general,
yield per acre was increased and quality of
product improved as compared with a year ago.
Harvesting of late maturing crops is now
practically completed. From threshing returns
it appears that the 1926 rice crop in California
was the largest crop of this grain produced in
that state since 1920. Both acreage planted and
harvested and yield per acre were greater in
1926 than in 1925, and the rice is reported to be
of good quality. Climatic conditions during OcP R O D U G T I O N -P R I N G I P A L G R A I N A N D F I E L D C R O PS*
Twelfth Federal Reserve District and United States
Preliminary Preliminary
Five-Year
Estimate
Estimate
Average
Actual
November 1, Octoberl,
(1919-1923)
1926
1926
1925
W h ea t (bushels)
115,641
100,227
101,974
fT w elfth D istrict. . . 101,974
852,176
U nited S t a t e s ... . . 839,818
840,000
666,437
Barley (bushels)
44,364
39,395
39,720
$Twelfth D istrict. . .
3 9 ,7 2 0 #
173,576
197,000
217,497
United S t a t e s ... . . 196,762
Rice (bushels)
7,363
8,100
8,100
4,738
§Tw elfth D istrict.
40,856
40,809
34,300
39,436
United S t a t e s ...
Beans (bushels)
5,147
||Twelfth D istrict.
6,066
6,154
6 ,0 6 6 #
17,000
19,500
12,068
1 6 ,9 7 0
United S t a t e s ... . ,
Cotton (bales)
229
123
Tw elfth D istrict.
225
216
16,627
16,104
10,543
U nited S t a t e s ... . .
17,918
Potatoes (bushels)
35,760
Tw elfth D istrict. . . 41,946
40,125
37,0820
350,821
325,902
U nited States. . . . . 360,727
388,497
Sugar Beets (tons)
742
2,144
^Twelfth D istrict.
742#
2,010
6,797
7,423
6,652
United S t a t e s ...
6,797
Because of this fact, and because of the high
yields per acre obtained, cotton growers of the
district are generally reported to be realizing
some profit on the year’s operations.
Early estimates of the 1926 apple crop of the
district forecasted a record volume of produc
tion. Unfavorable weather conditions during
late September resulted in severe crop losses,
however, and it is now estimated that the crop
this year will be but slightly larger than last
year, although still well above the average of
recent previous years.
A P P L E P R O D U C T I O N —Twelfth District and United States
Commercial Crop*
Tw elfth D istrictf ............
United States ...................
* In boxes,
Preliminary
Estimate
Sept. 1,1926
45,447,000
126,153,000
Actual
1925
37,989,000
95,727,000
fld a h o , W ashington, Oregon, California.
Citrus fruit crops in California have thus far
experienced a favorable season. Condition of
the orange crop is reported as 83 per cent of
normal compared with a ten-year average of 76
per cent, while condition of the lemon crop was
reported as 92 per cent of normal, compared
with a ten-year average of 79 per cent. Esti
mated production of the 1926-1927 Navel
orange crop is 11,800,000 boxes, compared with
a crop of 10,100,000 boxes in 1925-1926.
The peak of the 1926 grape shipping season
in California was passed during October. At
mid-November practically all unharvested
grapes were of the table varieties, and their
shipment, in some degree, depended upon
favorable market developments. The present
season may be characterized as one of early
maturity, good quality, heavy drying, moderate
shipments, and relatively low prices.
*000 omitted. fD o e s not include Arizona. $D oes not include
Arizona and W ashington.
§California.
||California and
Idaho.
IfCalifornia, Idaho, and U tah. ^Revised. # A s of
O ctober 1, 1926.
tober favored development and opening of the
top or late crop of cotton, and estimates of
production in California and Arizona were in
creased by 9,000 bales during the month. Cotton
of the grade and quality grown in these states
sells at a slight premium over most of the cot
ton grown in other parts of the United States.
Preliminary
Estimate
N ov. 1,1926
39,763,000
119,847,000
C A L IF O R N IA G R A P E CRO P
(Thousands of Tons)
W ine Grapes ............
Table G r a p e s ............
Raisin Grapes ..........
Total
........................
Estimated
Estimated
Total
Tonnage Dried
Production
( F r e s h b a sis)
1926
1925
1926 1925
414
395
20
4
395
424t
40
6
1,241
1,136$
1,020 720
E st.Tonnage
Harvested
and Shipped
Fresh
1926*
1925
394
391
355
318
221
378
2,050
970
1,955
1,080
730
1,087
^Includes shipments to N ovem ber 1st and estimated tonnage still
available for shipment on that date. tl0 0 ,0 0 0 tons not har
vested. $38,000 tons not harvested.
(A ) A gricultural M arketing A ctivity—
-C arlot ShipmentsPortland and
San
12th
Puget Sound Francisco Dist.
Monthly
(1000 bu.)
(1000 bu.)
Tears)
October,
1926.......................... ..............
6,041
482
18,186
September, 1926.......................... ..............
8.288
1,109
7,216
O ctober, 5 -year average.
..............
3,952
1,499
15,176
( 1919-]
- Crop Y e a r Cumulative
4,641
28,314
T o O ctober 31, 1926............................... 20,193
(19.8)
(11.7)
(49.8)
T o O ctober 31, 1 9 2 5 ...............................
5,809
7,539
26,003
(5 .8 )
(16.5)
(47.8)
Five-year average to O ctober 31st. 11,034
6,977
20,413
(1919-1923)
________
(9 .5 )
(17.3)
(40.3)
Lemonsf
Calif.
(cars)
728
593
577
50,030
(98.1)
37,637
(78.4)
42,431
(89.6)
-Calendar Y e a r 13,610
(90.7)
11,753
1,072,972
1,845,257
2,922,377
(91.7)
928,332§ 1,599,000§ 2,672,496§
10,523
(93.0)
Figures in parentheses indicate percentage of new crop only. *Season
month. §1921-1925. |I1922-1926. ORevised. ( . . . ) Not available.
Livestock Receipts
Orangest
Calif.
(cars)
2,868
3,2320
1,918
Cattle
and
Calves
Hogs
Sheep
119,064
126,541 §
151,310
151,569 §
445,028
383,888§
ColdStorage Holdings!
12th District
Butter Eggs
begins July 1st. tSeason begins November 1st.
(1000 (1000
lbs.)
5,259
6,292
3,865||
cases)
292
412
28711
$At end of
84
Seeding of winter wheat in Idaho, Oregon,
and W ashington has been in progress for the
past month. It is estimated that the area to be
planted this year will approximate the sevenyear (1919-1925) average of 2,591,800 acres.
Early sown fields are reported to be in good
condition.
Condition of livestock ranges in the Twelfth
District did not change materially during O c
tober, except in the southern range areas where
some improvement was noted. Hay for supple
mentary winter feeding is plentiful. Livestock
generally are in good condition. Shipments of
western feeder lambs to corn belt feedlots have
been unusually heavy during recent weeks. A
grow ing tendency among sheepmen to retain
ewe lambs and yearling ewes for breeding pur
poses has increased the demand for this class
of livestock. The usual fall marketing of cattle
has proceeded normally, but prices have not
been such as to encourage any widespread re
stocking of depleted breeding herds.
Industrial Activity
Maintenance of industrial activity at the high
levels of recent months was reported during
October, and figures of employment indicate
that industry is now slightly more active than
a year ago. Declining labor needs in agricul
ture, fishing, construction, and other seasonal
occupations have released numbers of casual
laborers from employment. The seasonal
migration of itinerant workers into California
and Arizona has commenced.
The steady decline in figures of building per
mits issued in principal cities of the district,
which has been a feature of the industrial data
of the past six months, was interrupted, at least
temporarily, during October, 1926, when these
figures showed an increase of 5.1 per cent as
compared with September, 1926. This increase
(B) E m ploym ent—
— O regon-------- —>
-California —
'
N o. of
N o . of
/— Employees —>
N o.
N o. r - Employees —>
O ct.,
Oct.,
of
O ct.,
O ct.,
of
1925
1926
Firms 1926
1925 Firms
Industries
101
19.603
19,806
A ll Industries........... 676 155,379 149,677
(
l
.
O
)
t
(3.8)
Stone, Clay and
242
184
8,022
5
8,671
43
Glass Products.
(8 .1 )
( — 2 4 .0 )t
Lum ber and W o o d
14,678
44
15,096
Products .......... 108 28,218 29,194
( — 3 .3 ) t
(— 2.8) t
950
1,001
2,381
2,433
4
13
Textiles ....................
(5 .4 )
(— 2.1)1Clothing, M illinery
542
62
7,644
8
545
7,771
and Laundering.
(0.6)
(1 .7 )
Foods, Beverages
2,588
31
2,425
and T o b a c c o ... 139 32,247 30,866
(6 .7 )
(4 .5 )
W ater, L igh t and
8,674
9,372
Power .................
5
(— 7.4) t
Other Industries*. 293 64,837 60,189
(7 .7 )
607
551
13
2,580
1,957
9
Miscellaneous . . . .
(10.2)
(31.8)
*Includes the following indu stries: m etals, machinery and con
veyances ; leather and rubber g o o d s ; chemicals, oils and
p a in ts; printing and paper goods. tD ecrease.
r
Figures in parentheses indicate percentage changes from Octo
ber, 1925.
November, 1926
MONTHLY REVIEW OF BUSINESS CONDITIONS
in value of permits issued was considerably
greater than the usual seasonal increase from
September to October, estimated to be 2.0 per
cent. Total value of building permits recorded
in 20 selected cities of the district during the
first ten months of 1926 ($306,961,635) was
practically 14 per cent less than the value of
permits issued during the same period in 1925,
a record year, and was less than in the first
ten months of any year since 1922.
B U I L D I N G P E R M IT S IN 20 C IT IE S
Per Cent Increase or Decrease (— )
O ctober .
Sept. . . .
Au gust .
July . . . .
June . . . .
M ay . . . .
April . . .
M arch . .
February.
J a n u a ry ..
Months in 1926 compared
with same Months in
- 1925 Monthly
Year-to-date
N o.
Value
N o.
Value
- 1 2 . 8 % — 1 4 .5 % — 1 2 .1 % — 1 3 .9 %
- 1 0 . 9 % — 1 7 .3 % — 1 2 .0 % — 1 3 .9 %
- 1 2 . 3 % — 1 8 .2 % — 1 2 .1 % — 1 3 .5 %
- 1 2 . 6 % — 4 .5 % — 1 2 .1 % — 1 2 .9 %
- 1 2 . 0 % — 7 .3 % — 1 2 .0 % — 1 4 .1 %
- 1 5 .3 % — 2 5 .8 % — 1 2 .0 % — 1 5 .5 %
- 1 2 .7 % — 1 5 .7 % — 1 1 .2 % — 1 2 .8 %
- 7 .8 % — 9 .8 % — 1 0 .7 % — 1 1 .6 %
- 1 1 . 2 % — 1 8 .1 % — 1 2 .6 % — 1 2 .8 %
...........................
—1 3 .8 % — 7 .3 %
Month in 1926
compared with
preceding
Month
N o.
Value
- 0 .2 %
5 .1 %
7 .0 % — 9 .3 %
8 .5 % — 8 .4 %
- 2 .6 % — 1 2 .6 %
1 .7 %
2 5 .6 %
—1 1 .3 % — 17.8 %
- 1 3 . 5 % — 3 .4 %
3 7 .1 %
3 5 .7 %
- 4 .4 % — 8 .3 %
3 .5 % — 2 1 .3 %
The United States Bureau of Labor Statis
tics’ index number of building materials prices
has remained practically unchanged at about
172 (1913 prices=100) since last May. It stood
at 174 in October, 1925. The Aberthaw index
number of the total cost of constructing a re
inforced concrete factory building remained
unchanged at 197 (1914 prices=100) during
October.
Activity at lumber mills reporting to four
associations in the district was characterized
during October, 1926, by a slight increase in
L U M B E R A C T IV IT Y *
O ct.,
S e p t.,
1926
1926
O ct.,
1925
(boa rd feet) (b o a rd feet) (b o a rd feet)
Production
Shipments
Orders
Unfilled O rderst
N o. of M ills
Reporting^ . .
790,376
722,749
709,414
486,604
777,106
740,674
724,603
504,136
726,098
681,411
623,986
363,582
181
179
167
First Ten Months—'
1926
1925
(board feet)
7,421,319 6,640,860
7,322,132
6,610,707
7,318,701
6,497,504
/-
(b o a rd feet)
182
193
* A s reported by four associations, 000 omitted except in case of
number of mills reporting. fR eported by three associations.
The figures are not strictly comparable with other figures
appearing in the table. $Average.
S ource: N ational Lum ber M anufacturers Association.
(C) Building Perm its—
Berkeley ...........
Boise ...................
Fresno ...............
L o ng Beach . . .
Los Angeles . . .
Oakland ............
Ogden ................
Pasadena ..........
Phoenix ............
Portland ............
Reno ...................
Sacramento . . .
Salt Lake C ity.
San D iego . . . .
San Francisco .
San Jose ...........
Seattle ...............
Spokane ............
Stockton ..........
Tacom a ..............
October, 1926
N o.
Value
295
$
432,177
102
57,920
121
83,860
368
497,120
3,482
9,950,229
970
1,777,085
20
49,350
309
858,431
145
295,361
1,229
2,624,320
17
92,875
249
615,413
92
326,005
862
1,637,331
849
5,649,690
142
295,400
923
1,457,965
233
382,785
102
126,060
223
440,775
10,733
$27,650,152
October, 1925
N o.
Value
399
$
780,205
86
308,997
127
95,683
421
1,286,320
3,882
11,655,786
1,294
3,311,192
32
101,500
256
779.535
151
309,767
1,441
2,295,800
23
271,049
333
685,225
137
935,592
786
1,227,548
1,057
4,351,249
132
446,220
1,094
2,053,100
236
284,220
124
233,325
297
922,875
12,308
$32,335,188
N o vem b er, 1926
FEDERAL RESERVE AGENT AT SAN FRANCISCO
production, a decline in volume of shipments,
sales, and unfilled orders, and an increase in
unsold stocks. Due partly to an increase in
number of mills reporting in October, 1926,
figures of production, shipments, sales and un
filled orders were considerably larger during
that month than in O ctober a year ago.
Daily average production of petroleum in
California increased 1.4 per cent during O cto
ber, 1926, as compared with September, 1926,
but was 5.1 per cent less than in October, 1925.
Indicated consumption of petroleum was 7.6
per cent smaller during October than during
September, but was only slightly less in volume
than production. Stored stocks increased by
31,405 barrels and stood at 118,911,731 barrels
on November 1, 1926.
O ct.,
Sept.,
O ct.,
Sept.,
1926.
1926.
1925.
1923*
P E T R O L E U M — California
Indicated
New W ells —>
Average
Stored
Daily
Average
Daily
Stocks at
Number Produc
Daily
Consumption
End of
tion
Opened
Production (Shipments)
Month
(b a rre ls)
(barrels)
(barrels)
(barrels)
50,986
73
. 611,808
610,795
118,911,731
26,832
58
. 603,498
661,017
118,880,326
35,678
69
. 645,648
566,948
124,689,411
139,960
93
. 858,750
t
t
*Peak of production. fCom parable figures not available.
Source : Am erican Petroleum Institute.
Figures of national production of non-ferrous
metals, together with a guide to the propor
tionate importance of this district in such pro
duction, follow :
N O N -F E R R O U S M E T A L S
National Production
Oct.,
1926
Sept.,
1926
Per Cent
of Total
Oct., Production
1925
12th Dist.
Copper (short tons) (mine
......................
75,643
71,777
70,624
production)
Lead (short tons) (crude)
53,809
49,830
52,927
Zinc (short tons) (sla b ). .
54,979
52,144
50,497
Silver (o z.) (commercial
bars) .................................. 5,011,000 4,995,000 4,933,000
64.5
47.7
69.0
During October, 1926, total production of 14
representative flour milling companies in the
district showed less than one-half the usual
September to October percentage increase.
W hile the month’s output of flour was equal
85
to that of October, 1925, it was 20.6 per cent
below the five-year (1921-1925) average output
for October, emphasizing the downward trend
in milling activity which has been apparent in
the district since late 1923 and early 1924.
Millers’ stocks of flour decreased 7.5 per cent
during October and on November 1st were 15
per cent smaller than the five-year (1921-1925)
average of stocks held on that date. Seasonal
buying of wheat proceeded actively during O c
tober and stocks of wheat on hand at the mills
increased 55 per cent. Last year, during O c
tober, a 54 per cent increase was reported, and
during the past five years the average increase
during October has been 41 per cent. Stocks of
wheat at reporting mills on November 1st
(4,157,397 bushels) were 13.5 per cent larger
than stocks held on November 1, 1925, and
were 36 per cent larger than the five-year (19211925) average of stocks on that date.
F L O U R M IL L IN G *
Output ( b b ls .) . . .
S tocksf
Flour ( b b l s .) ...
W h e at ( b u . ) .. .
O c t .,1926
512,685
404,657
4,157,397
Sept., 1926
484,831
437,455
2,689,582
O c t.,1925
512,120
356,068
3,663,097
Available data, which afford the basis for
preliminary estimates of the canned salmon
pack during the season just closed, indicate a
world output of approximately 10 million cases.
This is the largest pack since 1918, and exceeds
the five-year (1921-1925) average of 7,572,043
cases by about 28 per cent. The increase was
the result chiefly of a larger pack in Alaska.
As compared with a year ago the Alaska pack
increased by approximately two million cases
or 44 per cent. The British Columbia pack was
also larger than both the 1925 and the five-year
(1921-1925) average pack by about 12 and 41
per cent, respectively. Figures follow :
C A N N E D S A L M O N PACK
(0 0 0 O m it te d )
Berkeley ...............
Boise .....................
Fresno ..................
L o n g Beach . . .
L os Angeles . . .
O akland ...............
2 3 ,2 8 6
Ogden ...................
3 6 ,6 6 8
Pasadena ............
26,819
Phoenix ...............
198,102
Portland ...............
10,355
Reno ......................
33,532
Sacramento
79,245
Salt Lake C ity . .
61,668
San D iego ..........
San Francisco . . 1,052,831
3 2 ,7 9 2
San J o s e ...............
223,207
Seattle .................
60,062
Spokane ...............
Stockton ..............
26,846
46,272
Tacom a ...............
16,932
Yakim a ................
D istrict
...
*000 omitted.
.$3,127,210
1926*
t -------- Ten M on th s-------- \
October,
1925
1926
1925
181,907
191,863 $
$
19,648 $
121,160
133,879
14,247
359,722
382,281
59,502
469,657
498,391
49,916
7,795,797
8,696,136
803,085
1,393,973
1,688,758
158,485
202,504
243,195
33,025
346,612
369,100
33,455
252,198
227,575
26,750
1,653,966
1,819,631
203,184
86,097
9,819
92,099
324,909
363,280
38,300
709,939
689,963
83,978
59,926
640,599
544,437
1,071,722
10,560,056
9,427,965
252,452
264,573
33,075
2,139,252
218,220
1,998,729
515,411
560,655
60,215
2 6 6 ,3 9 3
257,643
31,134
45,689
457,965
436,358
19,203
133,545
127,138
$3,072,578
$30,384,726
$27,493,037
476,065
3,053,290
^Consolidations have reduced the number of reporting companies
but have not seriously affected the comparability of the
figures. f A t end of month.
(D) B ank Debits*—
October,
1926
19,272
15,188
57,832
47,007
884,380
174,914
Five-Year
Average
Oct.,
1921-1925
645,699
(c ases)
1925
Five-Year
Average
1921-1925
(c a se s)
(c a se s)
Alaska ..................................................... 6,407,000
United States (excluding Alask a)
816,536
4,450,898
1,583,423
4,385,312
1,123,825
Total United S t a t e s .................... 7,223,536
British Columbia ............................. 1,894,981
Siberia and Japan ...........................
540,000
6,034,321
1,697,298
676,663
5,509,137
1,340,280
722,626
8,408,282
7,572,043
T o tal W o rld
..................................
9,658,517
A
case contains 48 one-pound cans or their equivalent.
liminary estimate.
Source: Pacific Fisherman.
*Pre-
General Business and Trade
A high level of activity in business and trade
was reported during October, although sea
sonal increases were smaller than normal, as
indicated by the experience of past years. Total
trade volume in the district approximated that
of October, 1925, a period of active business.
N o vem ber, 1926
MONTHLY REVIEW OF BUSINESS CONDITIONS
86
Debits to individual accounts (bank debits)
in 20 principal cities of the district (a measure
of general business activity) increased one per
cent during October, 1926, as compared with
September, 1926, and were 5 per cent larger
than in O ctober a year ago. This bank’s index
of bank debits, in which allowance is made for
usual seasonal movements, declined during O c
tober for the third consecutive month.
B A N K D E B IT S — Twelfth District
Index for 20 Principal Cities*
W ith ou t Seasonal A d ju s t m e n t ...
W ith Seasonal A d ju stm en t............
O ct.,
1926
161
162
*D aily averages, 1919 a v e ra g e = 1 0 0 .
Sept.,
1926
1600
164
Aug.,
1926
146
166
Oct.,
1925
152
151
{^Revised.
INDEX NUMBERS
it should be remembered that the general
wholesale price level, as measured by the index
of the United States Bureau of Labor Statis
tics, is now approximately 5 per cent lower than
a year ago. Collections were generally slower
during October, 1926, than during October,
1925.
Sales at retail during October, as reported by
68 leading retail stores of the district, were 8.2
per cent larger in value than September sales
and were practically equal to those of October,
1925. The increase for the month was less than
that which usually occurs at this season of the
year, a fact accounted for by the relatively large
volume of sales during September rather than
by a general tendency for activity of trade at
retail to diminish. This bank’s seasonally ad
justed index of sales of 32 department stores
(representing 85 per cent of sales of the 68 re
porting stores) indicates that during recent
months trade at retail has tended to become
more active. W hile sales during October ap
proximated those of a year ago, stocks on hand
were slightly larger this year than last, and
the indicated rate of stock turnover during O c
tober, 1926, was 3.2 times per annum compared
with 3.3 times per annum during October, 1925.
Collections during the past month were larger
in actual amount than last year, but were
smaller in proportion to accounts outstanding.
D E P A R T M E N T S T O R E S A L E S -I n d e x Numbers
(1919 Monthly Average = 100)
B A N K D E B I T S - T W E L F T H D IS T R I C T
Index for 20 principal cities, Phoenix, Arizona, not included,(daily
averages, 1919 average = 1 0 0 ). Latest figures, October, with
______
adjustment, 162; without adjustment, 161.
*B ased upon average m onth to m onth increase during: the years 1919 to 1925 inclusive
Declining activity in trade at wholesale was
reported during October. Sales of 174 firms in
eleven lines of trade were 5.5 per cent smaller
than during September, whereas during past
years the tendency has been for sales to in
crease at this season. If allowance be made for
seasonal changes in sales volume, activity in
trade at wholesale, except during September,
has shown a tendency to decline since last June.
Sales during October, 1926, were 3.6 per cent
less in value than during October, 1925. In
making value comparisons over the year period,
W H OLESALE TRADE
Agricultural Im plem ents.
Autom obile Supplies
Autom obile T i r e s ...............
D rugs .......................................
D ry G o o d s .............................
Electrical Supplies ..........
Furniture
.............................
Groceries ................................
H ardw are ...............................
Shoes .......................................
Stationery .............................
N o. of
Firms
15
13
17
7
21
9
16
21
17
14
24
Percentage increase or decrease (— )
f ------------inValue of Sales------------ >
O ct., 1926 O ct.,1926 Sept.,1926
compared
compared compared
with
with
with
Oct., 1925 Sept., 1926 Sept., 1925
— 3.6
7.2
— 9.4
— 5.3
— 6.5
1.8
61.4
— 7.6
— 35.5
— 1.0
21.1
9.1
— 4.6
— 13.4
— 10.6
21.2
8.1
12.7
3.5
— 3.4
— 15.6
— 1.5
— 7.9
— 3.4
— 0.6
— 3.2
— 1.9
10.8
5.1
— 3.2
2.2
— 11.3
2.2
Los
O ak
land
Angeles
(6)*
(5)*
nal Adjustment
182
O ct., 1 9 2 6 .. . 241
Sept.. 1926. . . 231
140
A u g ., 1 9 2 6 .. . 232
145
July, 1926. . . 200
128
June, 1926. . . 209
142
O ct., 1 9 2 5 .. . 238
178
O ct.,
Sept.,
A u g .,
July,
1926. .
1926. .
1 9 2 6 ..
1 9 2 6 ..
Adjustment
. 234
168
. 265
147
. 216
161
. 233
161
. 226
141
. 232
164
San
Fran
cisco
(8)*
Salt
Lake
City
(4)*
Seattle
(5)*
151
139
135
109
124
148
127
110
87
84
109
139
112
1140
97
89
98
116
132
115
97
79
91
131
170
157
151
129
142
170
139
1500
142
141
149
137
107
112
112
105
106
117
101
1050
103
97
98
105
99
112
111
101
90
98
158
171
158
157
154
158
Spo
kane
(3)*
*Figures in parentheses indicate number of stores.
D is
trict
(32)*
ORevised.
On October 31, 1926, savings deposits in 68
banks in seven principal cities of the district
were virtually unchanged from the figure re
ported on September 30, 1926, and were 7.2
per cent larger than on October 31, 1925.
S A V I N G S D E P O S IT S
Number
Oct.
Sept.
Oct.
of
31,
30.
31,
Banks
1926*
1925*
1926*
Los Angeles . . 12
$420,840
$422,533
$383,3720
7
102,986
Oakland ..........
104,457
99,126
56,015
55,725
53,2260
Salt Lake City 8
33,131
33,469
29,990
San Francisco. 14
491,536
491,412
466,4000
83,911
83,784
76,658
19,774
19,907
19,554
— —
Total ............ 68 $1,209,664 $1,209,816 $1,128,3260
*000 omitted.
Oct. 31,19261
compared with
Oct. Sept.
31,
30.
1925
1926
9.8 — 0.4
5.4
1.4
5.2
0.5
10.5 — 1.0
5.4
0.0
9.5
0.2
1.1 — 0.7
------- -------7.2
0.0
IPercentage increase or decrease (— ) .
ORevised.
N ovem ber, 1926
FEDERAL RESERVE AGENT AT SAN FRANCISCO
Prices
The wholesale price index number of the
United States Bureau of Labor Statistics de
clined slightly during October, and at 149.7
(1913 prices=100) was four per cent below the
high point (156.0) of January, 1926. A month
ago this index stood at 150.5, and a year ago at
157.6. Group indexes for farm products, cloths
and clothing, building materials, metals, chem
icals and drugs, house furnishings, and miscel
laneous articles, declined during October. The
general level of fuel and lighting prices ad
vanced, and that of foodstuffs was unchanged.
The United States Department of A gricul
ture’s farm price index of 30 commodities de
clined from 134 in September to 130 in October,
while the Bureau of Labor Statistics’ index of
non-agricultural commodities held at previous
levels. The ratio between these two indexes, an
indication of the purchasing power of farm
products, declined from 83 in September to 81
in October. A year ago this ratio was 87 (pre
war purchasing power ratio=100).
Prices for agricultural products of the
Twelfth Federal Reserve District have gener
ally been lower in 1926 than in 1925, but not so
low as to threaten seriously the opportunity for
financial profit on the year’s farm operations.
Developments during the past month have, on
the whole, been favorable. Quotations on sev
eral varieties of grapes, a fruit which over much
of the 1926 season has sold at prices below the
low levels of last year, advanced during O c
tober. Prices for citrus fruits have quite gen
erally been lower during 1926 than during 1925,
but recent advances have reflected rising open
ing prices for new crop fruit. The trend of
potato prices during O ctober of this year re
sembled the October trend in 1925, when prices
moved upward throughout the entire month,
with a sharp advance between O ctober 23rd and
30th. Prices for representative grades and
varieties of apples, f. o. b. Pacific Northwest,
declined during October, but recovered a part
of the loss in early November.
87
Cotton prices continued downward during
October but at a much slower rate than in
September. Prices in early November were 8.8
per cent lower than at the beginning of October
and 34 per cent below those of November a year
ago. Quotations for spot middling uplands cot
ton at New Orleans for the week ending N o
vember 6, 1926, ranged from 12.27 to 12.68
cents per pound. Although the crop is grow ing
in importance, cotton is still a minor product
of this district, and recent drastic price declines
will not seriously reduce aggregate financial
returns to the district’s farmers.
The wheat market during October remained
firm, but showed weakness during the forepart
of November. Quotations for December con
tract wheat at Chicago, for the week ending
November 5, 1926, ranged from $1.39% to
$1.41% per bushel, a slight variation from the
range for the week ending October 1, 1926
($1.39% to $1.42 per bushel). On November
15, 1926, the quotation per bushel ranged from
$1.35 to $1.36j^. On November 14, 1925, it
ranged from $1.54% to $1.56 per bushel.
W eekly average prices for best grade live
stock at six district markets continued at high
levels during October, 1926, as compared with
October, 1925. Livestock price trends in the
Chicago market duringOctober reflected volume
of receipts. The rise in cattle prices during late
September and early October was terminated as
receipts increased, and prices broke sharply to
$9.90 (per 100 pounds, native beef) for the week
ending November 5, 1926, a decline of 5.3 per
cent from the average of October 1, 1926. The
November figure was 7.5 per cent below the
high point of the year reached in September,
when for the week ending September 25th, the
average price of cattle on this market was $10.70
per 100 pounds. Average prices for lambs and
hogs for the week ending November 5, 1926,
were 3.8 per cent, and 0.4 per cent higher, re
spectively, than for the week ending October 1,
1926. Prices for lambs for the week ending
November 5, 1926, were 10.3 per cent below,
and for hogs 13.1 per cent above average prices
(E) Com m odity P rices—
Commodity
W holesale Prices (U . S. Bureau of L abor) 1 9 1 3 = 1 0 0 ......................................
Purchasing Power of Farm Products ( U . S. D ept, of A g ric u ltu re)*..........
Cattle (N ative B e e f). W e e k ly average price at C hicago....................................
L a m b s ............................... W eek ly average price at C hicago.....................................
H o g s ..................................W eek ly average price at C hicago.....................................
W h e a t ............................... Chicago contract price for D ecem ber w heat................
W o o l ..................................Average of 98 quotations at B oston ..............................
A p p le s ............................... W inesaps, Extra Fancy, medium to large, f. o. b.
Pacific N orthw est ..............................................................
O ranges............................ Valencias, Fancy, wholesale at San Francisco..........
P runes............................... Size 4 0 /5 0 in 25-lb. boxes, f. o. b. California.............
R aisin s............................... Thom pson Seedless, Bulk in 25-lb. boxes, f. o. b.
California .................................................................................
Canned Peaches..........Cling Choice, 2 ^ s , f. o. b. California............................
B u tter............................... 92 score at San Francisco...................................................
C opper............................... Electrolytic, m onthly average at New Y o r k .............
L e a d ....................................M onthly average at New Y o r k .........................................
S ilver..................................M onthly average at N ew Y o r k .........................................
Lum ber (Softw ood) . . W eek ly Index, United S ta te s f.........................................
Unit
100 lbs.
100 lbs.
100 lbs.
bu.
lb.
box
box
lb.
lb.
doz.
lb.
lb.
lb.
oz.
November 5,1926
149.7
81.2
$9.90
13.50
12.55
1 .3 9 ^ -1 .4 1 3 /6
67.590
1 .25-1.4 0
6.00-6.2 5
.0 6 H -.0 7 H
. 0 7 j/ 2
2 .2 0
.4 6
13.8620
8.4020
54.5050
30.28
One Month Ago
150.5
83.0
$10.45
13.00
12.50
1 .3 9 % -1 .4 2
67.380
1.30-1.35
5.25-5.75
.07^ 2-.08
.0 7 %
2.20
.44
14.0620
8.7860
60.5800
29.91
One Year Ago
157.5
87.0
$10,450
15.05
11.10
1 . 4 7 ^ - 1 .5 1 ^
77.980
2.15
8 .0 0 -9 .0 0
.0 8-.082 4
N ot Quoted
2.20
.5434
14.3000
9.5130
70.1060
30.350
*Ratio of farm prices (August, 1909-July, 1914=100) to wholesale prices of non-agricultural commodities (1910-1914=100).
fAs published by “ The Lumber Manufacturer and Dealer.” QRevised.
88
November, 1926
MONTHLY REVIEW OF BUSINESS CONDITIONS
for the corresponding period in 1925. Prices
for sheep remained practically unchanged.
M onthly average prices of silver, copper,
lead, and zinc declined during October. A ver
age prices of these metals during the present
year have been generally lower than 1925 aver
ages. A national lumber price index published
by “ The Lumber Manufacturer and Dealer”
advanced from 29.91 to 30.28 during the month.
A year ago it stood at 30.35.
lars on November 17th, total loans and invest
ments of these banks were also at record levels.
Both demand and time deposits, although
smaller in amount on November 17th than on
October 13th, have increased during the most
recent weeks of the period, continuing a ten
dency which, with the exception of late Septem
ber, has been in evidence since early summer.
R E P O R T IN G M E M B E R B A N K S — Twelfth District
(In millions of dollars, percentage changes in parentheses.)
Condition
Nov. 17.
1926
Banking and Credit Situation
Although the peak of the crop m oving season
has passed, demand for credit (as reflected in
recent condition reports of 65 city member
banks in the Tw elfth Federal Reserve District)
continued to expand during October and rose
to record levels during the first half of N ovem
ber, 1926. This increase in demand for funds
was similar to that which occurred in 1925 and
1922, periods of increasing business activity,
but was contrary to the decline which occurred
after the peak of the harvest season in 1924 and
1923, when, relatively, business was not so
active. It must be remembered that these are
figures of city banks and that if data were avail
able for all banks, country and city, different
movements might be reflected. Such informa
tion as can be secured indicates that country
banks have been liquidating their borrowings
as crops have moved to market.
The increased demand for credit noted dur
ing the five-week period ended November 17th
has been reflected solely in an increased volume
of commercial loans, while loans made on
securities as collateral have declined. Between
Total Loans .......................
Commercial Loans . . . .
Loans on Securities
Investm ents ......................
Total Loans and Invest-
.
.
.
.
. 1,295
.
974
.
321
.
467
. 1,762
N et Dem and D eposits. . . .
792
Tim e D eposits ................. . .
885
Borrowings from Federal
Reserve B a n k ...............
46
t-----------Changes from-------------*
One Year
One Month
Ago
Ago
increase \
decrease
/
( ± + 106 ( 8.9)
+ 16 ( 1.3)
+ 31 ( 3.3)
+ 61 ( 6.7)
— 15 ( 4.4)
+ 45 (16.4)
— 8 ( 1.6)
—
9 ( 2.0)
+ 8 ( 0.5)
— 16 ( 2.0)
— 2 ( 0.2)
+
—
+
— 11 (19.5)
+
97 ( 5.8)
10 ( 1.2)
63 ( 7.7)
2 ( 4.0)
700
Total earning assets (total bills and securi
ties) of the Federal Reserve Bank of San Fran
cisco decreased by 10 million dollars (7.8 per
cent) during the five-week period ended N o
vember 17, 1926, due to a decrease of 14 million
dollars in the holdings of bills discounted,
which was only partially offset by an increase
of 4 million dollars in holdings of purchased
acceptances. A t 118 million dollars on N ovem
ber 17th, total bills and securities were nearly
15 million dollars below the seasonal peak of
133 million dollars recorded on September 29th,
and approximated the mid-summer level. Coin
cident with the growth of deposits at member
banks during the summer and fall months, re
serve deposits of those banks with the Reserve
Bank have tended upward and total deposits
at the Reserve Bank rose to 180 million dollars
on November 17, 1926, a record figure. Federal
Reserve note circulation, although of prac
tically constant volume during recent months,
declined 3 million dollars between October 13th
and November 17th and on the latter date was
nearly 8 per cent smaller in amount than one
year ago.
60 0
F E D E R A L R E S E R V E B A N K O F S A N F R A N C IS C O
MILLIONS OF D O L LA R S
1400
1200
1000
aoo
(In millions of dollars, percentage changes in parentheses.)
500
400
300
M E M B E R B A N K C R E D I T -T W E L F T H D IS T R I C T
Figures for about 65 member banks in leading cities, as of last
Wednesday of each month. Latest figures, October 27.
October 13th and N ovem ber 17th, commercial
loans of reporting banks increased 31 million
dollars (3.3 per cent) to 974 million dollars, the
highest figure on record. A t 1,762 million dol
Total Bills and Securities.
Bills Discounted ...............
United States Securities. .
Bills Bought ........................
Total R e s e r v e s ......................
Total D e p o s i t s ......................
Federal Reserve N ote
Circulation ........................
C on
dition t-------------- Changes from--------------- >
N ov. 17,
One Month
One Year
1926
Ago
Ago
increase \
decrease /
118
— 10 ( 7.8)
— 8 ( 6.3)
51
— 14 (21 .5 )
+ 1 ( 1.2)
39
0
— 5 (11.5)
29
+ 4 (16.2)
— 3 ( 9.7)
264
+ 6 ( 2.4)
— 4 ( 1.6)
180
+ 5 ( 2.6)
+ 2 ( 1.3)
188
—
3 ( 1.6)
— 16 ( 7.8)
Despite increased use of funds, adequate sup
plies of bank credit have continued available,
and interest rates during recent weeks have
been approximately the same as a year ago.
@FedFRASER