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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, October 20,1926
No. 10
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 and trade activity increased dur
ing September, and is at present in considerably
larger volume than during the midsummer
months. The price of cotton has declined
sharply within recent weeks, while prices of
most groups of commodities have advanced.
Volum e of bank credit has increased seasonally,
and money rates have remained firm.
Production. A ccording to Federal Reserve
Board indexes, production in basic industries
and factory employment and payrolls, after
changing but little for approximately four
months, advanced in September to the highest
points since last spring. Gains in activity of
textile mills were particularly noteworthy.
Consumption of cotton increased, woolen mills
were more active than at any time since Janu
ary, and increased employment was reported
in nearly all branches of the textile industry.
Iron and steel production was maintained from
early in August until the latter part of October
at a level higher than for the corresponding
period of previous years. Autom obile output
was reduced in September, but continued larger
than a year ago. Mining of coal has steadily in
creased since midsummer. The weekly run of
crude petroleum from wells in October reached
the highest level since June of last year.
Building contracts awarded during August
and September were only slightly smaller in
value than the awards for the corresponding
period of last year and, in the first half of O c
tober, far exceeded those of a year ago. A sub
stantial decline in contracts for residential
structures has been largely offset by an in
crease in awards for industrial and engineering
projects.
The Department; of Agriculture’s October
18th estimate placed 1926 cotton production at
17,454,000 bales, an increase of about threequarters of a million bales over the estimate
made on the first of the month, and of 1,350,000
bales over last year’s crop.
Trade. W holesale and retail trade activity
increased in September and value of sales was
slightly larger than last year. Inventories of
PER CENT
PER CENT
19 22
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, September, 121.
Index of U . S. Bureau of Labor Statistics (1913 = 100, base adopted
by Bureau). Latest figure, September, 150.5.
74
October, 1926
MONTHLY REVIEW OF BUSINESS CONDITIONS
department stores increased slightly more than
is usual in September, and at the end of the
month were about the same in volume as a year
ago. Railroad freight car loadings reached new
high weekly records in September, and ship
ments were maintained during the early weeks
of O ctober in much larger volume than in pre
vious years. A n important part of the increase,
as compared with last year, was due to larger
shipments of coal and ore, but loadings of
manufactured commodities have also increased.
BILLIONS OF DOLLARS
Bank Credit. Between September 22nd and
October 20th, seasonal increase in the demand
for credit for agricultural and commercial pur
poses was reflected in a continued growth in
the commercial loans of member banks in lead
ing cities. Loans on securities and holdings of
investments declined, but the banks’ total loans
and investments were about $60,000,000 larger
on October 20th than four weeks earlier. A t
the Reserve Banks, the volume of member bank
borrowing, after considerable fluctuation reBiLLIONS OF DOLLARS
2
TOTAL
RE:SERVE 0ANJ
1 CREDIT 1
1
U
1
\
D iscour ■ITS FOR
MEMBE R BAN K& *
US.SECUR ITÍES
i
/
1922
A
*
\ ^ | l*
J r \
/
V / A C ?CEPTANCES
, 1i.
1 .............. .
\vX
^
1923
1924
1925
1926
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 October.
Monthly averages of daily figures for 12 Federal Reserve Banks.
Latest figures are averages of first 22 days in October.
Prices. The general level of wholesale prices
advanced slightly in September and October,
notwithstanding a drop in the price of cotton to
the lowest level since 1921. The Bureau of
Labor Statistics’ index of wholesale prices was
about one per cent higher in September than
in August, reflecting advances both in agricul
tural and in non-agricultural commodities. In
recent weeks prices of corn, non-ferrous metals,
and paper have declined, while prices of live
stock, meats, poultry and dairy products, and
bituminous coal have increased.
suiting from temporary conditions, was in O c
tober at about the same average level as in
September. There was little change in the
banks’ holdings of United States securities. A c
ceptance holdings continued to increase, as is
usual at this season. Except for a temporary
firming of interest rates around the first of
October, there has been little change in the
condition of the money market during recent
weeks. Rates on commercial paper and on ac
ceptances have remained at the levels estab
lished in September.
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
September. iawi
compared with
Statistical Summary—
Sep,ie9”6ber’
Bank Debits—21 c itie s* ........................................ $3,004,429
Bank Debits— Index Numbersf—20 cities.........
164
Building Permits—20 cities...................................$26,317,852
Retail Sales— 32 stores— Index N um bersf..........
171
Savings Deposits— 69 banks*'§............................. $1,209,816
Lumber Production—4 associations—board feet*
777,106
Petroleum Production^:— California—barrels ..
603,498
Flour Production— 14 com oanies#— barrels . . .
484,831
Reporting- Member Hank Loans and Discounts!!* $1,278,923
Reporting Member Bank Deposits||*................. $1,718,551
Federal Reserve Bank Discounts||*.....................
$64,867
Federal Reserve Bank Reserve Ratio||...............
68.2
Sep¿e2^ber'
Am 5 ''
$2,865,710 $2,779,033 $2,693,729
166
1490
1500
$29,025,541 $31,826,926 $35,482,926
158
153
148
$1,203,457 $1,130,7380 $1,122,5070
831,6350
687,592
717,588
605,325
668,759
677,599
420,516
475,456
371,882
$1,218,658 $1,148,225 $1,137,922
$1,654,922 $1,603,005 $1,580,341
$50,848
$49,868
$48,172
70.2
72.4
72.3
ms"
m l"
8.1
10.1
— 17.3
11.8
7.0
13.0
— 9.8
2.0
11.4
7.2
30.1
— 5.8
4.8
— 1.2
— 9.3
8.2
0.5
— 6.6
— 0.3
15.3
4.9
3.8
27.6
— 2.8
*In thousands. fAdjusted for seasonal variations— 1919 monthly average=100. IDaily average production. §Not comparable with
figures published in previous Reviews. ||October 13 and September 15, 1926, and October 14 and September 16, 1925. flPercentage
increase or decrease (— ). QRevised. #See footnote to Flour Milling Table, page 77.
October, 1926
75
FEDERAL RESERVE AGENT AT SAN FRANCISCO
Agricultural Activities
Early autumn rains, which fell over large
areas of the Twelfth Federal Reserve District
during the first weeks of October, did little
damage to crops still in the field and facilitated
progress of fall plowing and planting. Harvest
ing of grain and early field and deciduous fruit
crops has been completed, and district yields of
such crops as rice, cotton, sugar beets, and late
maturing varieties of apples are rapidly being
gathered from fields and orchards. The more
complete harvesting returns now available tend
to confirm earlier estimates of a relatively large
district crop of grains and of deciduous fruits.
Prices in both of these important crop groups
and for agricultural products in general have
been lower during the 1926 agricultural mar
keting season than they were last year, and
indications thus far are that, despite more
abundant yields, aggregate financial returns
from this season’s operations have not differed
greatly from the 1925 figures.
P R O D U C T I O N -P R I N C 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
Estimate
Estimate
Five-Year
October 1, Septemberl, Actual
Average
1926
1926
1925
(1919-1923)
W h ea t (bushels)
115,641
fT w elfth D is t r ic t .. . 101,974
100,227
100,843
U nited S t a t e s . . .. . 840,000
838,591
852,176
666,437
Barley (bushels)
$Twelfth D is t r ic t .. .
39,720
39,492
44,364
39,395
U nited S t a t e s . . .. . 197,000
195,204
217,497
173,576
Rice (b u s h e ls )#
§Tw elfth D is tr ic t..
8,100
8,118
7,363
4,738
U nited S t a t e s . . .. .
39,436
39,267
34,300
40,856
Beans (bushels)
||Twelfth D is tr ic t..
6,066
5,829
6,154
5,147
U nited S t a t e s . . .. .
17,000
17,253
19,500
12,068
Cotton (bales)
Tw elfth D is tr ic t..
216
216
229
123
U nited S t a t e s . . .. .
16,627
15,166
16,104
10,543
Potatoes (bushels)
Twelfth D is t r ic t .. . 40,125
39,718
35,760
37,0820
United S t a t e s . . .. . 350,821
351,557
325,902
388,497
Sugar Beets (tons)
UTwelfth D is tr ic t..
742
2,010
2,144
826
United S ta tes------ .
6,797
6,525
7,423
6,652
*000 omitted. fD o e s not include Arizona. $D oes not include
Arizona and W ashington. §California. ||California and Idaho.
llCalifornia, Idaho, and U tah. # O n e bushel of paddy rice
weighs 45 pounds. ORevised.
Crops generally are m oving to market in an
orderly manner, as indicated in Table “ A .”
Some reduction in seasonal shipments of apples
from the Pacific Northwest may be anticipated
as a result of crop losses attendant upon freez
ing temperatures and strong winds late in Sep-
tember. Approximately 5,619,000 bushels of
apples, or 16.6 per cent of the estimated crop in
Idaho, Oregon and W ashington, were de
stroyed. Shipments of grapes from California
during the season to October 15, 1926, totaled
48,637 carloads, which compares with 55,707
carloads shipped during the 1925 season to O c
tober 15th, and a total movement in 1925 of
75,858 carloads. This year’s grape crop, which
is estimated to be approximately 4.5 per cent
larger than the 1925 crop, ripened from two to
three weeks earlier than usual, and the result
ant dislocation of shipping schedules was an
important factor in a market which has been
generally characterized by growers as unsatis
factory. A statistical summary giving estimates
of production and disposition of the California
grape crop during the past two years fo llo w s:
C A L IF O R N IA G R A P E CROP
(Thousands of Tons)
W in e Grapes ............
Table G r a p e s ............
Raisin Grapes ...........
Total
........................
Estimated Estimated Tonnage
Total
Harvested and Dried
Production
( F r e s h b a s is)
1926
1925
1926 1925
400
395
20
4
407
424f
40
6
1,241
1,136$
1,020 720
2,048
1,955
1,080
730
Est.Tonnage
Harvested
and Shipped
Fresh
1926*
1925
380
391
367
318
221
378
968
1,087 ’
*Includes shipments to O ctober 1st and estimated tonnage still
available for shipment on that date. fl0 0 ,0 0 0 tons not har
vested. $38,000 tons not harvested.
The United States Department of Agricul
ture estimates that the total 1926 production of
raisins in California will be 270,000 tons, com
pared with an output of 180,000 tons in 1925,
and an average production for the past seven
years of 197,357 tons.
P R O D U C T IO N — C A L IF O R N IA H O R T IC U L T U R A L CRO PS
(Except Apples)
Preliminary
Five-Year
Actual
Estimate
Average
Oct. 1,1926
1925
(1919-1923)
(t o n s )
(to n s)
(tons)
14,000
7,500
160,000$
150,000
9,120§
9,500
390,000
483,000
214,000§
181,000
147,000
145,000
19,500
30,500
. . 22,100,000*§ 20,800,000*
..
5,800,000*§
6,000,000*
Alm onds
Apricots
Figs -----Peaches
Pears . . .
Prunes .
W alnu ts .
7,650
148,000
10,880
378,000
117,200
114,500
24,120
19,025,000*
4,527,000*
P
United States . . .
. . 39,825,000*
. .115,524,000*
37,989,000*
95,727,000*
34,435,000*
88,721,000*
*B oxes. fCalifornia, Idaho, Oregon, and W ashin gton.
A u gu st 1, 1926. §A s of September 1, 1926.
$A s of
(A ) A gricultural M arketing A ctivity—
Livestock Receipts
(--------- Exports---------- \ ---------- Carlot Shipments--------- \
at Eight Markets in 12th District
Wheat*
Barley* Apples*
Cattle
Portland and
San
12th
Orangest Lemonsf
and
Puget Sound Francisco Dist.
Calif.
Calif.
Calves
Hogs
Sheep
Monthly
(1000 b u .)
(1000 b u .)
(c a rs)
(c a rs)
(c ars)
119,064
151,310
445,028
September, 1926 .........................................
8,288
1,109
7,216
3,422
593
112,795
144,884
393,498
A u gust,
1926 .........................................
4,1880
1,7350
1,262
3,313
1,367
100,102§
128,026§
347,956§
September, 5-year average...................
3,055
2,019
3 ,7 8 6
2,189
602
(1919-1923)
Cumulative
f--------------------------------Crop Y e a r ---------------------------------- , -------------- Calendar Y ear---------------^
925,451
1,472,874
2,638,432
T o September 30, 1926........................... 14,151
4,159
10,128
47,309
12,812
(1 3 .9 )
(10 .4 )
(17 .8 )
(92 .8 )
(85.4)
928,497
1,681,869
2,481,469
T o September 30, 192 5 ...........................
4,422
6,540
8,076
36,782
11,025
(4 .4 )
(14.3)
(14.8)
(76.6)
(95.9)
5-year average to September 3 0 t h ..
7,082
5,477
5,237
40,512
9,946
801,791§ 1,447,431§ 2,288,608§
______(1919-1923)
(6 .1 )
(13 .6 )
(1 0 .3 )
(85 .5 )
(87.9)
Figures in parentheses indicate percentage of new crop only. * Seasonbegins July
month. §1921-1925. ||1922-1926. ORevised.
ColdStorage Holdings!
12th District
Butter Eggs
(1000 (1000
lbs.)
cases)
6,292
414
7,438
516
4,952|| 43111
1st. tSeason begins November 1st. $At end of
76
Physical conditions generally have continued
favorable to the livestock industry of the dis
trict, although ranges in Utah, Nevada, Idaho
and Northern Arizona have suffered from early
freezes and partial drought. Cattle shipments
have been maintained in large volume on a firm
market, and the tendency to neglect restocking
of depleted herds has persisted. M ovement of
sheep to market has approximated the seasonal
expectation. A n improved demand for feeder
lambs during recent weeks has broadened the
market for this class of animals, which is now
in large supply. There has been considerable
culling of aged ewes in range flocks and pur
chases of ewe lambs and yearling ewes for re
placement purposes have been increasing.
Industrial Activity
Figures of production in basic industries, re
ports on the volum e of building construction,
and data on employment conditions indicate a
generally high level of industrial activity in this
district.
A lthough the amount of building now under
way is large, permit figures of recent months
have indicated some decline in activity in this
field. In 20 principal cities of the district the
value of permits issued during September, 1926,
was less than in any September since Septem
ber, 1922, and less than in any month since
January, 1923. The total value of permits issued
in these cities during the first nine months of
1926 has been exceeded by the value of permits
issued during the first nine months of each year
since 1922. The 1926 figures were 14 per cent
smaller than those for the first three quarters
of 1925, a record year.
The United States Bureau of Labor Statis
tics’ index number of building materials prices
continued to advance during September, while
(B) E m ploym ent—
-Californi a---------s
N o . of
Employees —>
N o.
Sept.,
of
Sept.,
1925
Industries
Firms 1926
673 170,181 163,850
(3.9)
Stone, Clay and
Glass P roducts.
44
7,597
7,448
(2 .0 )
Lum ber and W o o d
Manufactures . . 108 28,202 28,631
(— 1 .5 ) f
2,344
2,325
T extiles ....................
13
(0 .8 )
Clothing, M illinery
and Laundering.
60
7,647
7,431
(2 .9 )
Food, Beverages
and Tobacco —
140 45,231
42,232
(7 .1 )
W ater, L igh t and
10,062
Power ...................
5
9,056
( — 1 0 .0 )t
O ther Industries*. 289 67,678 63,669
(6 .3 )
2,426
2,052
14
M iscellaneous . . . .
(18.2)
f
— ------- ^
----- Oregon ■
N o . of
N o.
-— Employees —'
Sept.,
of
Sept.,
1925
Firms 1926
17,502
17,155
93
(2.0)
194
283
6
(— 3 1 .5 )t
40
12,464
12,625
(— 1 .3 )t
1,029
908
4
(13.3)
549
550
8
(— 0.2) t
26
2,681
2,249
(19.2)
t------
9
585
(8.3)
540
the Aberthaw index number of the total cost
of constructing a reinforced concrete factory
building remained unchanged.
B U I L D I N G C O S T S -I n d e x Numbers
U .S . Bureau
of
Labor*
172.4
174
180
Month
September, 1 9 2 6 .,. . .
September, 1 9 2 5 ... . .
September, 1 9 2 2 .,. . .
Figures in parentheses indicate percentage changes from Septem
ber, 1925.
A berthawt
197
194
190
January,
1923. . . .
188
192
A u gu st,
1 9 2 6 ... . .
171.8
197
Average U.S.Bureau
First Nine
of
A berthawf
M onths
Labor*
1926
174
197
1925
175
195
199
1924
177
202
1923
193
1922
164
163
1921
168
187
*U nited States Bureau of L abor Statistics’ index number of cost
of building materials ( 1 9 1 3 = 1 0 0 ) . fA b erth aw index number
of total cost of constructing a reinforced concrete factory
building ( 1 9 1 4 = 1 0 0 ) .
Production, shipments, and sales of lumber
at mills reporting to four associations in the
district were all smaller in volume during Sep
tember, 1926, than during August, 1926, but
were larger than during September, 1925. P ro
duction of reporting mills exceeded both ship
ments and new orders during September, 1926,
with a consequent increase in volume of unsold
stocks. An excess of shipments over new orders
received was accompanied by a decline in
volume of unfilled orders. Cumulative mill
figures for the first nine months of this year
show that during that period production has
exceeded both shipments and sales by small
amounts. Domestic and foreign markets for
lumber have been relatively inactive during re
cent weeks.
LU M B ER A C T IV IT Y *
Sept.,
Aug.,
Sept.,
/—First N ine Months-^.
1926
1926 1925
1926
1925
(board feet) (board feet) (board feet) (board feet)
(board feet)
Production . . . . 777,106 831,6350 687,592
6,630,943
5,914,766
801,024 660,775 6,599,383
5,929,296
Shipments ____ 740,674
757,952 625,314 6,609,287
5,873,518
Orders ............... 724,603
Unfilled O rderst 504,136
545,068 429,749
N o . of M ilis
R eporting* . .
179
184 167
181
178
* A s reported by four associations, 000 omitted except in case of
number of mills reporting. fR eported by three associations.
T h e figures are not strictly com parable with other figures
appearing in the table. {A ve rage. ORevised.
S o u rce: N ational Lum ber M anufacturers Association.
Average daily production of petroleum in
California during September, 1926, was 0.3 per
(C) Building Perm its—
L o n g B e a c h ..........
Los A n g e l e s .......... . .
.,
Salt Lake C ity . . .
San D i e g o ...............
San Francisco . . .
..
*Includes the follow ing indu stries: metals, machinery and con
veyances ; leather and rubber g o o d s ; chemicals, oils and
p a in ts; printing and paper goods. fD ecrease.
October, 1926
MONTHLY REVIEW OF b u s i n e s s c o n d i t i o n s
D istrict
............... . .
September, 1926
Value
N o.
$
670,584
99
154,550
138
147,981
300
657,245
3,335
8,163,581
2,123,002
945
19
79,300
313
675,835
123
254,671
1,301
2,617,580
28
238,690
414,973
126
380,565
1,413,572
825
4,001,012
800
129
351,845
1,055
2,862,185
278
592,699
102
114,167
266
403,815
10,759
$26,317,852
September, 1925
Value
N o.
$
839,312
431
92
41,937
120
125,886
395
1,480,551
3,704
11,071,923
1,267
3,000,070
34
203,700
223
815,363
100
182,124
1,563
3,539,685
28
67,250
319
655,920
144
511,495
790
1,641,940
902
3,158,082
87
161,163
1,101
2,805,050
276
299,341
123
235,021
378
991,113
12,077
$31,82 6 , 9 2 6
O ctober, 1926
FEDERAL RESERVE AGENT AT SAN FRANCISCO
cent (1,827 barrels) less than in August, 1926,
and was 8.7 per cent less than estimated aver
age daily consumption, which increased by 2.1
per cent.
P E T R O L E U M — California
Indicated
Average
Daily
Average
Consumption
Daily
Production (Shipments)
Sept.,
A u g .,
Sept.,
Sept.,
1 9 2 6 ..
1 9 2 6 ..
1 9 2 5 ..
1923*.
Stored
Stocks at
End of
Month
(barrels)
(barrels)
(barrels)
603,498
605,325
668,759
858,750
661,017
647,4170
512,780
118,880,326
120,605,895
122,249,717
t
New W ells —■
n
D aily
Produc
tion
Number
Opened
(barrels)
26,832
18,067
41,978
139,960
58
55
80
93
t
*Peak of production. fCom parable figures not available. ORevised.
Source : Am erican Petroleum Institute.
Figures of national production of non-ferrous
metals, together with a guide to the proportion
ate importance of this district in such produc
tion, follow :
N O N -F E R R O U S M E T A L S
National Production
Sept.,
1926
Per Cent
of Total
produced in
Sept., 12th
A Dist.
ug.,
'—
in 1925*
1926
1925
Copper (short tons) (mine
71,777
72,221
67,393
production) ........................
Lead (short tons) (crude)
49,830
49,625
44,334
Zinc (short tons) ( s l a b ) . .
52,144
51,761
47,384
Silver (o z.) (commercial
bars) .................................... 4,995,000 5,073,000 4,634,000
64.5
47.7
8.8
69.0
*Includ ing all of Arizona, the five southeastern counties of which
are in the Eleventh Federal Reserve District.
Seasonal increases in flour production were
reported during September but the gain in out
put was smaller than is usual for that month.
Aggregate production of 14 principal milling
companies was 15 per cent larger in September,
1926, than in August, 1926, which compares
with a five-year (1921-1925) average Augustto-September increase of 21 per cent. The mills
produced 2.0 per cent more flour during Sep
tember, 1926, than during September, 1925.
Millers’ stocks of flour decreased during Sep
tember, but the composite figure for October 1,
1926 (437,455 barrels) was 6 per cent greater
than the five-year (1921-1925) average figure
for O ctober 1st. Stocks of wheat held by re
porting millers, at 2,689,582 bushels on October
1, 1926, were 24 per cent larger than the aver
age of stocks held on O ctober 1st during the
years 1921 to 1925, inclusive. They exceeded
(D ) B ank D ebits*—
Berkeley ............
Boise ....................
Fresno ................
L o n g Beach . .
L os Angeles . .
Oakland ............
O gden .................
Pasadena ..........
Phoenix ..............
Portland ............
Reno ...................
Sacramento . . .
Salt Lake C ity.
San Diego
San Francisco .
San Jose ............
Seattle ................
Spokane ............
Stockton ...........
Tacom a ...............
Y akim a ...............
District
..........
*000 omitted.
September,, / --------Nine M onths----------*
September,
1925
1925
1926
1926
$
162,259
172,591
19,403
$
17,340 $
106,913
118,691
14,879
13,797
300,220
47,712
52,627
324,449
451,384
419,741
43,870
42,304
6,992,712
7,811,756
851,764
760,085
1,513,844
1,235,488
165,961
143,489
210,170
22,676
27,751
179,218
332,432
313,157
31,631
29,346
200,825
23,502
20,708
225,379
190,529
177,871
1,621,529
1,450,782
9,714
8,870
81,744
76,278
291,377
38,037
33,138
324,980
70,673
630,694
605,985
71,965
55,121
578,931
484,511
59,964
1,004,533
939,903
9,507,225
8,356,243
28,246
26,724
231,781
219,377
235,713
219,834
1,916,045
1,780,509
57,885
54,015
500,593
455,196
27,175
27,239
239,547
226,509
43,901
42,976
411,693
390,669
15,369
15,222
116,613
107,935
.$
.
.
.
.
,
$3,004,429
$2,779,033
$27,257,516
$24,420,459
77
holdings as of September 1, 1926, by 10 per cent.
Both domestic and foreign flour markets are
reported to have been active during recent
weeks. Shipments of flour from Columbia
River and Puget Sound ports during the first
three months (July, August, and September)
of the 1926-1927 season have approximated
those of the first quarter of the 1925-1926
season.
Five-Year
F L O U R M IL L IN G *
Sept., 1926
484,831
Output (bbls.) —
Stockst
Flour ( b b l s .) ...
437,455
W h ea t ( b u . ) .. . 2,689,582
Aug., 1926
420,516
536,380
2,440,349
Sept., 1925
475,456
374,022
2,375,637
Average
Sept.,
(1921-1925)
579,713
412,903
2,166,037
* A s reported by 14 companies. Consolidations have reduced the
number of reporting companies but have not seriously af
fected the comparability of the figures. f A t end of month.
General Business and Trade
Seasonal increases in volume of trade were
reported during September, and the level of
business activity in the district was well above
that of a year ago.
INDEX NUMBERS
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, September, with
______
adjustment, 164; without adjustment, 158.
*B ased upon average m onth to m onth increase during: the years 1919 to 1925 inclusive.
The daily average volume of payments by
check (bank debits) in 20 principal cities of the
district increased by approximately 8 per cent
during September, 1926, as compared with
August, 1926, and was approximately 7 per cent
larger than in September, 1925. The increase
over the previous month was less than that
which the experience of past years has indi
cated should occur at this season so that our
index, which makes allowance for seasonal
movements, declined for the second consecu
tive month. The decline was slight, however,
and the index is still relatively high.
B A N K D E B IT S -T w e lft h District
Index for 20 Principal Cities*
W ith ou t Seasonal A d ju s tm e n t.. .
W ith Seasonal A d ju stm en t............
Sept.,
1926
158
164
*D aily averages, 1919 a v e ra g e = 1 0 0 .
ORevised.
A ug.,
1926
146
166
July,
1926
1560
1680f
Sept.,
1925
148
149
fH ig h est point reached.
78
October, 1926
MONTHLY REVIEW OF BUSINESS CONDITIONS
Variations in the seasonally corrected index
tend to reveal changes in business activity
which are non-seasonal in character and which
are the resultant of year-to-year growth and
the so-called “ cyclical” movements of business.
The broken line on the chart, page 77, shows
the average year-to-year growth (trend) of
business during the post-war period 1919-1925,
inclusive. The index reveals that during the
past three months business activity has been at
the highest levels, relative to the post-war
trend, since 1920.
Sales of 69 retail stores of the district during
September, 1926, were approximately 3 per cent
larger than during August, 1926, whereas ordi
narily there is a decline of 4 per cent in sales
from A ugust to September. The month’s sales
of reporting stores were 10 per cent larger than
during September a year ago. Stocks held by
the same stores were but 1.3 per cent larger than
last year, and the indicated annual rate of stock
turnover for September, 1926, was 3.2 compared
with 2.9 for September, 1925. The accompany
ing table and chart giving index numbers of
sales of 32 department stores (whose sales total
approximately 85 per cent of sales of the 69
stores referred to above) reveal a marked in
crease in activity of trade at retail during re
cent months, an increase which has brought the
index to a point above the post-war trend.
period. The United States Bureau of Labor
Statistics’ index of wholesale prices stood at 151
(1913=100) in September, 1926, compared
with 160 in September, 1925. This decline of
INDEX N UM BERS
D E P A R T M E N T S T O R E S A L E S - T W E L F T H D IS T R I C T
Index of 32 Stores in 7 cities (1919 monthly average=100). Latest
figures, September, with adjustment, 171; without
__
adjustment, 157.
*Based upon average month to month increase during the years 1919 to 1925 inclusive.
5.8 per cent is a factor which must be consid
ered when comparing dollar values of sales for
the two periods.
W H OLESALE TRADE
D E P A R T M E N T S T O R E S A L E S — Index Numbers
(1919 Monthly Average = 100)
O ak
Los
land
Angeles
(6)*
(5)*
Without Seasonal Adjustment
140
Sept., 1 9 2 6 .,. . 231
A u g., 1 9 2 6 .,. . 232
145
July,
1 9 2 6 .,. . 200
128
Sept., 1 9 2 5 .,. . 193
133
San
Fran
cisco
(8)*
Salt
Lake
City
(4)*
Seattle
(5)*
Spo
kane
(3)*
D is
trict
(32)*
139
135
109
130
110
87
84
113
117
97
89
107
115
97
79
100
157
151
129
141
150
142
141
140
112
112
105
114
107
103
97
98
112
111
101
97
171
158
157
153
W ith Seasonal Adjustment!
Sept.,
A u g.,
Tuly,
Sept.,
1 9 2 6 .,. .
1 9 2 6 .,. .
1 9 2 6 ... .
1 9 2 5 .., .
265
216
233
223
147
161
161
140
*Figures in parentheses indicate number of stores. O ne store
included in district figures not included in cities shown above.
t N o adjustm ent has been made for business days lost due to
Saturday closing of stores during the summer months.
Value of sales at wholesale, as reported by
168 firms in eleven lines of trade, increased 4.8
per cent, or more than the usual seasonal
amount, during September, 1926, as compared
with August, 1926. Reported sales were 5:01
per cent greater in value during September,
1926, than during September, 1925. In & & of
the reporting lines a comparison of sales over
the year period showed decreases, but these
^were offset by substantial increases in the other
v&Helines. In no case did the reported decrease
in value of sales exceed the decline in the gen
eral level of wholesale prices over the year
N o. of
Firms
Agricultural Im plem ents.
15
Autom obile Supplies
13
A utom obile T i r e s ..............
18
7
D ry G o o d s ............................., 18
Electrical Supplies ...........
9
15
, 20
17
12
Stationery .............................. 24
Percentage increase or decrease (— )
t------------in Value of Sales------------ \
Sept., 1926 Sept, 1926 A ug., 1926
compared
compared compared
with
with
with
Sept., 1925 A ug., 1926 A u g., 1925
— 3.6
1.7
— 14.8
— 5.3
— 4.6
— 2.7
61.4
31.8
1.7
3.8
6.1
— 4.0
— 1.5
8.1
10.9
12.7
3.5
3.6
13.6
— 1.5
9.9
2.6
— 0.6
6.0
— 1.8
10.8
6.9
6.9
2.2
3.7
6.2
On September 30, 1926, savings deposits in
69 banks in seven principal cities of the district
were 0.5 per cent larger than on August 31,
1926, and 7.0 per cent larger than on September
30, 1925.
S A V I N G S D E P O S IT S
Number
Sept.
/
of
30,
Banks
1926*
L o s A n g e l e s . . 13
$422,533
O ak lan d ! -----7
102,986
Portland ..........
7
55,725
Salt Lake City 8
33,469
San F rancisco. 14
491,412
Seattle .............. 14
83,784
Spokane ..........
6
19,907
T otal
............
Aug.
31,
1926*
$421,024
102,367
55,771
33,263
488,875
82,411
19,746
Sept.
30,
1925*
$383,6810
99,587
53,0840
30,959
468,1300
75,884
19,413
69 $1,209,816 $1,203,457 $1,130,7380
Sept. 30,1926J
compared with
Sept. A u g.
30,
31,
1925
1926
10.1
0.4
3.4
0.6
5.0 — 0.1
8.1
0.6
5.0
0.5
10.4
1.7
2.5
0.8
7.0
0.5
*000 omitted, fln clu d es one bank in B erkeley which was for
m erly a branch of an Oakland bank. {P ercentage increase
or decrease (— ) . ORevised.
O ctob er, 1926
FEDERAL RESERVE AGENT AT SAN FRANCISCO
The dollar value of foreign commerce passing
through ports of the Tw elfth Federal Reserve
District during the first eight months of 1926
was 16 per cent larger than during the first
eight months of 1925, all customs districts par
ticipating in the increase. During the first six
months of 1926 the combined value of imports
through these customs districts tended to de
cline, but increased rapidly during July and
August, and for the eight months period was
greater than for any corresponding eight
months period since 1918, when large quantities
of vegetable oils and fats and other raw ma
terials for war purposes were being imported.
Similarly, exports were larger in value during
the first eight months of this year than in any
like period since the first eight months of 1920.
These dollar value comparisons assume added
significance as a record of increased volume of
trade when necessary allowances are made for
the lower level of general prices which now pre
vails as compared with the years 1918-1920.
F O R E I G N G O M M E R G E -T w e lft h District
Exports*
Customs
January 1 to August 31, Calendar Year
Districts
1926
1925
1925
1924
$ 75,791
$ 66,527
L os A n g e l e s ................... $ 63,446 $ 48,903
Oregon .............................
41,297
18,133
44,550
62,836
San Francisco ...............
112,937
101,222
177,906
173,429
W ashin gton ...................
85,732
64,471
116,451
134,525
D istrict
........................
$303,412
$232,729
$414,698
$437,317
Imports*
Customs
January 1 to August 31,Calendar Year
Districts
1926
1925
1925
1924
L os A n g e l e s ................... $ 26,775
$ 23,464
$ 40,808 $ 31,533
Oregon ............................
8,646
7,723
10,738
10,612
San Francisco ..............
136,764
12 7 , 6 8 2
183,250
146,813
W ashin gton ...................
167,866
164,534
262,055
270,450
D istrict
........................
$340,051
$323,403
$496,851
$459,408
*000 omitted.
Prices
The United States Bureau of Labor Statis
tics’ index of general wholesale prices advanced
slightly during September, 1926, standing at
150.5 (1913=100) for that month, compared
with 149.2 for August, 1926, and 159.7 for Sep
tember, 1925. Group indexes for farm products,
79
foods, cloths and clothing, fuel and lighting ad
vanced during the month, the chemical and
drugs group remained unchanged, and the
house furnishings and miscellaneous groups de
clined.
The Department of Agriculture’s farm price
index (1909-1914=100) advanced one point to
134 in September, and the Bureau of Labor
Statistics’ index of prices of non-agricultural
commodities advanced one-half point to 160.6.
The ratio between these two indexes, an indi
cation of the present, as compared with the pre
war (100), purchasing power of farm products,
was unchanged at 83.0. In September, 1925, it
was 88.0.
Quotations on cattle, sheep and hogs at Chi
cago advanced during September. For the
week ending October 1, 1926, average prices
ranged from 4 to 7 per cent higher than for the
week ending September 3, 1926, but were 13.6
per cent, 0.8 per cent, and 12.4 per cent lower,
respectively, than for the week ending October
2, 1925. Prices paid for lambs declined approxi
mately 9 per cent during September, 1926, and
in the closing week of that month were slightly
below the prices quoted a year ago.
L IV E S T O C K P R IC E S A T C H I C A G O *
(Weekly average per 100 pounds)
W eek Ending
Beef Cattle
O ctober 1, 1926.............................
$10.45
September 3, 1926........................
10.00
O ctober 2, 1925.............................
12.10
Lambs
$13.00
14.25
13.10
Hogs
$12.50
11.65
12.60
Sheep
$6.00
5.65
6.85
*D ates indicate end of week for which prices have been aver
aged.
Wheat prices tended upward during Septem
ber and early October. Quotations for D ecem
ber contract wheat at Chicago ranged from
$1.35j4-$1.36j^ on September 1, 1926, to
$1.41%-$1.42% per bushel on October 18, 1926.
On October 15, 1925, follow ing a decline in
prices, quotations for December contract wheat
ranged from $1.4134 to $1.43*4 per bushel.
Cotton prices declined rapidly during Sep
tember and early October, as estimates of pro
duction were increased. Spot quotations for
middling uplands cotton at New Orleans fell
25 per cent during the month ending October 7,
(E) Com m odity Prices
Commodity
W holesale Prices ( U . S. Bureau of Labor) 1913— 1 0 0 .........................................
Purchasing Power of Farm Products (U . S. Dept, of A g r ic u ltu re )*............
W h e a t............................. .C hica go contract price for December w heat..............
W o o l ................................. .A verage of 98 quotations at B o sto n ...............................
A p p le s............................. .Jonathans Extra Fancy med. to large, f. o. b. P a
cific Northw est .....................................................................
O ranges.......................... Valencias Fancy, wholesale at San F r a n c i s c o ....
P runes............................. .Size 4 0 /5 0 in 25-lb. boxes f. o. b. California............
R aisin s............................. Thompson 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 F rancisco.....................................................
Copper............................. Electrolytic, m onthly average at N ew Y o r k ..............
L e a d .................................. M onth ly average at N ew Y o r k ...........................................
Silver................................ .Monthly average at N ew Y o r k ...........................................
Lum ber (S o ftw o o d ). .W e ekly Index, United S t a t e s !...........................................
Unit
bu.
lb.
box
box
lb.
lb.
doz.
lb.
lb.
lb.
oz.
October 1,1926
1^0 5
83.0
$1 .39*0-1.42
6 7 .3 8 0
1.10-1.2 5
5 .25-5.7 5
.0 7 /1 2 - . 0 8
.0 7 Ÿ 2
2.20
.44
14.062$
One Month Ago
149.2
83.00
$1.35 *4-1.36 j/2
66.170
One Year Ago
159.7
88.0
$ 1 . 3 3 ^ - 1 . 37K
N ot Quoted
4 .75-5.2 5
.07 ^ - . 0 8
1.75
8.0 0 -8 .7 5
.0 8 & -.0 9 J Í
.0 7 ^
2.20
.44
14.174$
8 .7 8 6 0
8 .9 0 8 0
6 0 .5 8 0 0
62.3800
29.90
2 9 .9 1
7 6 .7 6 0
N o t Quoted
2.20
.54
14.376$
9.508$
71.570$
30.48
*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.*' ORevised.
80
October, 1926
MONTHLY REVIEW OF BUSINESS CONDITIONS
1926, and October quotations have been ap
proximately 40 per cent below the prices quoted
a year ago. A t 12.70 cents per pound on O c
tober 4, 1926, this grade of cotton was quoted
at the lowest price recorded since August 21,
1921, when it sold for 12.50 cents per pound.
An average of 98 wool quotations at Boston
advanced from 66.17 cents per pound on Sep
tember 3, 1926, to 67.38 cents per pound on
O ctober 1, 1926, an increase of 1.8 per cent dur
ing the month. The latest figure is 13.3 per cent
below the average of a year ago (76.76 cents
per pound).
Opening prices for California almonds and
walnuts in each of the past six years, as pub
lished by the co-operative associations control
ling the bulk of these two crops in that state,
fo llo w :
P R IC E S O F C A L I F O R N I A N U T C R O P S
(Cents per pound)
Alm onds (N onpareil) ............
W aln u ts (L ar ge b u d d e d ). . .
1926
25 T
A
32
1925
30^
29
1924
23 Y*
29
1923
21
26
1922
25
26
1921
23
28
M onthly average prices of copper, lead, silver,
and zinc declined 0.8 per cent, 1.4 per cent, 2.9
per cent, and 0.5 per cent, respectively, during
September, 1926, and were 2.2 per cent, 7.6 per
cent, 15.4 per cent, and 4.4 per cent below the
average of September, 1925.
Banking and Credit Situation
Credit demands of the autumn crop moving
period have been met by the member banks of
the district without difficulty, although the
volume of credit outstanding has been larger
MILLIONS OF D OLLARS
of relative stability during September advanced
sharply during the first half of O ctober and at
the middle of that month were nearly 5 per cent
larger than in mid-September. Investments of
these banks increased slightly during the same
period, and total loans and investments, at
$1,753,000,000 on O ctober 13, 1926, reached the
highest point on record. Reporting member
bank borrowings from the Federal Reserve
Bank had, on October 13, 1926, increased 37 per
cent from their mid-September low point, but
were only 7 per cent larger than on Septem
ber 1, 1926.
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
Oct. 13,
1926
( ----------
Increase O ver------------^
One Month
One Year
Ago
Ago
Total Loans ...................... . . 1,279
Commercial Loans . . . . . .
943
Loans on Securities . . . . .
336
Investments ....................... . .
474
Total Loans and Invest
ments ................................. . . 1,753
N et Dem and D e p o s i t s .... .
809
Tim e D e p o s i t s ____
..
887
1
Borrow ings from Federal
Reserve Bank . . .
57
60
20
41
2
( 4.9)
( 2.1)
(13.8)
( 0.4)
131
55
76
10
(11.4)
( 6.2)
(29.2)
( 2.2)
62 ( 3.7)
15 ( 1.9)
51 ( 6.1)
141 ( 8.8)
18 ( 2.3)
95 (11.9)
15 (3 6 .9 )
15 (36.3)
*Total resources of reporting banks are approxim ately 50 per cent
of total resources of all banks, and 71 per cent of total re
sources of all member banks in the Tw elfth Federal Reserve
D istrict. Reporting banks embrace m em ber banks in Los
Angeles, San Francisco, Oakland, Portland, Tacom a, Seattle,
Spokane, O gden, and Salt Lake City.
Total discounts of the Federal Reserve Bank
of San Francisco reached $68,700,000 on Sep
tember 29, 1926, the highest figure recorded this
year. Follow ing the month-end peak, discounts
declined slightly, and on O ctober 13, 1926, were
approximately the same in amount as on Sep
tember 1, 1926, but still 28 per cent higher than
on September 15, 1926. Total investments of
the Reserve Bank declined by $8,000,000 (11
per cent) during the four-week period ending
October 13th, and at $63,513,000 were smaller
in amount than at any time since March 24,
1926. The resultant of the contrary movement
of discounts and of investments during the
period between September 15th, and October
13th, was an increase in total earning assets
(total bills and securities) of $6,000,000 or 5
per cent. The volume of Federal reserve notes
in circulation has changed little during recent
weeks.
F E D E R A L R ESE R VE B A N K O F S A N F R A N C IS C O
(in millions of dollars, percentage changes in parentheses.)
C on
----------- — Change
dition
Oct. 13,
One Month
1926
A go
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, September 29.
than ever before. Borrow ing from the Federal
Reserve Bank has been at slightly higher levels
than in the past tw o years.
Total loans of 65 reporting member banks in
the principal cities of the district, after a period
One Year
Ago
increase \
( ± = : decrease /
Total Bills and Securities.
B ills D iscounted ' . ...............
U nited States S e cu ritie s..
B ills B o u g h t ...........................
Total R e s e r v e s ......................
Total D e p o s i t s ......................
Federal Reserve N ote
Circulation .......................
128
65
39
25
258
178
+ 6 ( 5.1)
+ 14 (27 .6 )
— 4 (1 0 .4 )
— 3 (11 .7 )
— 2 ( 0.6)
+ 1 ( 0.8)
+ 11 ( 9.7)
+ 15 (30.1)
— 5 (11 .5 )
191
—
— 14 ( 7.0)
1 ( 0.6)
+ 2 ( 8.2)
— 15 ( 5.4)
+ 8 ( 4.6)
@FedFRASER