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£©s-NOT TO BE RELEASED FOR PUBLICATION BEFORE THE AFTERNOON OF S E P T E M B E R 2 6 , 1921 A g r ic u l t u r a l and B u s in e s s C o n d it io n s IN THE TWELFTH FEDERAL RESERVE DISTRICT Monthly Report to the Federal Reserve Board by JOHN PERRIN, Chairman of the Board and Federal Reserve Agent Federal Reserve Bank of San Francisco Vol. V. San Francisco, California, September 16, 1921 H E larg er volum e of m ovem ent of goods a t retail th an a t w holesale d u rin g re cent m onths, the effect of w hich in in creasing prices of canned fruits in this d istrict w as m entioned last m onth, has been reflected d u rin g A u g u st in advances in the opening prices of tw o large co-operative associations in C alifornia han d lin g dried T h e M o n th prunes, apricots, peaches, and figs. P rices of hops of th e 1920 crop have also advanced to 18-24 cents per pound com pared w ith 13-15 cents earlier in th e season. R eports from several sources indi cate th a t th e physical volum e of business in th e d istrict at th e p resen t tim e is g re a te r th an it w as last year at this season, and th a t it is m anifesting th e seasonal increase custom ary in th e first weeks of the autum n. B ank clear ings d u rin g A u g u st w ere only 11 per cent less th an th ey w ere in A ugust, 1920, w hereas, July clearings w ere 22 per cent less th an those of Ju ly , 1920. T he 11 per cent decline for A u g u st is, w ith th e exception of th e sh o rt m onth of F eb ru ary , th e sm allest decrease in any yearly com parison so far d u rin g 1921. N et sales of 31 rep resen tativ e d ep a rtm en t stores d u r ing A u g u st w ere rep o rted to be 6.2 per cent less th a n they w ere in A ugust, 1920. T he Ju ly p ercen tag e of decline com pared w ith July, 1920, w as 13 per cent. T hese sam e stores re p o rt th a t th eir average prices are betw een 20 and 30 per cent less th a n th ey w ere a t th is tim e last year, indicating a considerable increase in the physical volum e of m erchan dise sold by them . In the w holesale trade, rep o rts indicate for the first tim e this year th a t th e percen tage of decline in value of m onthly sales as com pared w ith th e sam e m onth of 1920, is less th an for the preceding m onth of T th e cu rren t year. T hese declines for A u g u st range betw een 11.4 per cent in the case of au to m obile tires to 44.6 per cent in th e case of ag ri cultural im plem ents. T he average of th e stan d ard indices of w holesale prices show s a decline in th e general level of such prices of approxim ately 40 per cent durin g th e tw elve m onths ending w ith A ugust, and it is th e re fore ap p aren t th a t in the w holesale trad e also th e physical volum e of business is probably g re a te r th an it w as a y ear ago, b u t no t by so large a m argin as appears to be the case in th e retail trade. B uilding activ ity durin g A u g u st continued to increase, the num ber of perm its issued being 33.1 per cent in excess of th o se g ra n te d durin g A ugust, 1920, and th e valuation, n o tw ith sta n d in g th e su b stan tial decline in prices d u rin g th e p ast year, 14.2 per cent greater. W o rk w hich had been discontinued in several p arts of th e d istrict due to w age controversies in th e building trad e s w as re sum ed d u rin g th e m onth. B usiness failures d urin g A ugust, although practically the sam e in num ber (150) as in the m onth of July, w ere 35 per cent less in am ount of liabilities in volved. T h ey w ere 66 per cent g re ater in num ber th an in A ugust, 1920. H a rv estin g of th e basic crops of the d istrict reveals th a t yields this y ear will be large in nearly all cases. T he apple crop of 33,000,000 bushels in prospect is 40 per cent g re ater th a n it was last year. T h is increase com es a t a tim e w hen the crop in th e U nited S tates g en e r ally is considerably less th an half w h at it w as last year. T he d istric t’s potato crop of 40,000,000 bushels is about th e sam e as last y e a r’s, w hereas, the U nited S ta te s’ crop is reported to prom ise a yield of about 25 per cent less th an th e q u an tity harv ested in 1920. T h e w heat T hose desiring this report sent them regularly w ill receive it w ithout charge upon application. No. 9 Agricultural and Business Conditions 2 crop of the Pacific N o rth w e st a t 115,000,000 bushels is 15 p er cent g re ater th an last y e a r’s record crop and is being sent to the principal seaboard cities in volum e 185 per cent g re ater th a n w as th e case d u rin g the sam e period of th e 1920 m ark e tin g season. In C alifornia b ar ley a sim ilar tendency is noted, term inal re ceipts so far th is season having been 530 per cent g re a te r th a n those of last season to Sep tem b er 1 st, and exports 566 per cent greater. T h e effect of th is m ark etin g of crops and the in creasing ac tiv ity in th e retail and w holesale trad es, in building activity, and in o th er busi ness as reflected in b ank clearings, upon the financial situ atio n in th e d istrict is ap p aren t from th e rep o rts of th e 66 re p o rtin g m em ber banks located in th e seven principal cities. T h ese in stitu tio n s d u rin g the four w eeks end ing S eptem ber 7th, reduced th eir rediscounts w ith this b ank by $14,000,000 or 25 per cent, n o tw ith sta n d in g an increase in accom m odation to th eir custom ers th ro u g h bills discounted of a like am o u n t d u rin g th e sam e period. F rom th e rep o rts of these banks, all located in the p rincipal cities of th e district, it w ould appear th a t th e b usiness and industrial in terests w hom th e y principally serve have m ade su b stan tial p ro g ress since th e sum m er of 1920, in reducing th e ir indebtedness to banks. R ediscounts of th is b ank for th e city m em ber banks on Sep tem b er 6 th la st w ere $ 66 ,000,000 com pared w ith $83,000,000 on Ju n e 15, 1920, a decrease of $17,000,000 or 20 p er cent d u rin g the year. A m ong th e co u n try m em ber banks, serving prim arily th e a g ric u ltu ral and livestock in tere sts of the d istrict, an opposite tendency is observed. T h e ir rediscounts w ith this bank on Ju n e 15, 1920, w ere $44,000,000. O n S eptem ber 6 th last th ey had risen to $ 66 ,000 ,000 , an increase of $22,000,000 o r 50 per cent. F ig u res are not y et available show ing th e effect upon the re d isco unts of co u n try banks of the heavy m ark e tin g of ag ric u ltu ral products w hich is now in progress. Savings deposits in th e d istrict increased n o m inally d u rin g th e m onth of A u g u st and are now 7 per cent larg e r th a n th ey w ere a y ear ago. In te re st rates in th e larg e r centers are rep o rted to be slig h tly easier, p artic u la rly th e open m arket ra te for com m ercial paper. P ro d u ctio n of re p o rtin g flour m ills in th is d istrict d u rin g A ugust, increased slig h tly over July, a slig h t increase in dom estic dem and be ing reported. E x p o rt dem and for b o th M illing w h eat and flour also increased d u r ing th e m onth. M illers in th e Pacific N o rth w e st re p o rt th a t receipts from ru ra l dis tric ts are in excess of receipts for th e sam e period last year. T h is re p o rt is su b stan tiated by th e table of receipts of w h e at a t term in al points show n on the follow ing page. Stocks of flour in m illers’ h ands on S eptem b er 1 st, as reported by 16 large operators, w ere 194,190 barrels, com pared w ith 384,286 barrels on S eptem ber 1, 1920. Stocks of w h eat held by th e sam e operators w ere 885,262 bushels, com pared w ith 1,611,987 bushels a y ear ago. T able “A ” show s th e A u g u st prod u ctio n of th e re p o rtin g m ills by states, and th e p er centages of m ill capacity in o p eratio n th is y ear and last year. Estimated Monthly Marketing of Wheat (in millions of bushels) by Farmers in the United States and Per Gent of Crop Marketed Monthly (A) M illing — No. Mills Reporting August July r August (barrels) —Output--------------July (barrels) Per Gent Mill Capacity in Operation August July August 1920 1921 1921 C alifo rn ia ... , 11 Id a h o ........... 5 O re g o n ........ 25 W a sh in g to n . . . . 2 9 14 4 25 29 239,379 16,473 112,697 293,641 221,876 13,174 100,250 263,315 47 45 41 42 54 44 32 38 47 43 35 31 D istric t 72 662,190 598,615 43 41.2 39 ........ . . 70 3 Federal Reserve Bank of San Francisco H a rv estin g of w in ter w h e at w as practically com pleted in all states of th e d istrict d u rin g A u gust, and th resh in g w as well advanced. A large acreage of sp rin g w heat reW heat and m ains to be harvested, especially Barley in th e elevated sections of O re gon a n d W a sh in g to n . L o c a l show ers delayed h arv estin g in U ta h and Idaho b u t p erm itted plow ing and sow ing for w in ter crops. E stim ates of yields have no t m aterially changed since A u g u st 1st, w hen a crop of 115,361,000 bushels for th e d istrict w as in p ro s pect, com pared w ith 100,232,000 bushels in 1920. R eceipts and exports of w h e at at P o rtlan d , P u g e t Sound, and San F rancisco shipping points since th e beginning of th e crop year fo llo w : RECEIPTS P o rtla n d .......... P u g e t S o u n d .. S an F ra n c isc o . T o ta l July 1-Sept. 1 1921 July 1-Sept. 1 1920 (b u sh els) (b u sh e ls) . 9,024,000 . 4,306,500 . 183,383 ................. 13,513,883 been passed and th e m ovem ent of early varie ties of apples is well under way. F resh fru it shipm ents from C alifornia by rail this Fruits y ear approxim ate those of the corre sponding period of 1920, as will appear from the accom panying chart. T h e chief factor in the m ark et prospects for apples from this d istrict is the sm all to tal crop of the U nited S tates, the yield th is year being estim ated at 107,000,000 bushels com pared w ith 244,000,000 bushels in 1920. T h e apple crop of the Pacific N o rth w e st is now placed at 33.118.000 bushels this year, com pared w ith 23.931.000 bushels in 1920. Percentage Increase 1921 over 1920 3,733,500 1,278,000 80,552 141.7 236.9 127.6 5,092,052 165.3 EXPO RTS P o rtla n d ............... 6,649,729 P u g e t S o u n d ......... 171,958 San F r a n c i s c o .. .. 11,366 3,153,214 515,368 2,096 110.8 — 66.6 442.2 6,833,053 3,670,678 87.9 T o ta l R eceipts, exports and stocks of barley at San F rancisco, for Ju ly and A ugust, 1921, and 1920, w ere as fo llo w s: (c e n ta ls )* (c e n ta ls)* Percentage Increase 1921 over 1920 2,850,820 3,406,250 378,580 451,900 517,296 585,480 530.8 566.4 — 35.9 July and Aug. 1921 R eceip ts ............ E x p o rts ............ S to c k sf ............. July and Aug. 1920 *O ne cental equals tw o bushels. tS to c k s a t S an F ran cisco , P o r t C osta a n d Stockton. E stim a te d average prices to grow ers (per bushel) for w heat and barley, com pared w ith la st year at th is tim e are as follow s (U nited S tates D ep artm en t of A g ricu ltu re figures) : 1921 Wheat 1920 $1.29 .81 .97 .92 $2.38 2.32 2.36 2.37 1921 Barley 1920 $0.57 .64 .83 .62 $1.52 1.44 1.93 1.43 D eciduous fruits continued to m atu re satis facto rily in all states of th e d istrict d u rin g the m onth of A ugust. H a rv e st of apples, pears, peaches, plum s, prunes, and raisin and table grapes, continued in C alifornia. In W a sh in g to n and O regon the peak of the pear shipm ents has O n A u g u st 1st, th e C alifornia A ssociated R aisin Com pany, th e dom inant factor in th is field, announced new quotations on th e ca rry over of 1920 raisins, calculated to net the grow ers ab o u t 9 cents per pound, w hereas the open ing prices in 1920 w ere based upon a re tu rn of 15 cents per pound to grow ers. T h is re duction w as m ade in the endeavor to reduce th e carryover on th a t date (estim ated at 50,000 tons o u t of a to tal of 180,000 tons) before the appearance of th e 1921 crop on the m arket. D em and for raisins stren g th en ed follow ing th e price reduction, and su b stan tial reductions in 1920 stocks are reported. T h e 1921 opening prices, announced by the A ssociation on S eptem ber 15th, ranged from 13 cents to 19 cents, depending upon size, and m ethod of preparation, com pared w ith 1920 opening prices of from 20 cents to 23% cents per pound. O n A u g u st 22nd tran sco n tin en tal freig h t rates w ere reduced from $ 1 .66 % to $1.25 per hundred pounds for packed fru it and to $ 1.45 per hundred pounds for sacked fruit. F ollow ing this action th ere occurred a heavy e a st w ard m ovem ent of California fruit, p a rt of w hich w as a record shipm ent of five train lo ad s of raisins sen t from F resno, California. 4 Agricultural and Business Conditions T h e C alifornia P each and F ig G row ers an nounced an advance in th e prices of dried peaches in A u g u st, th e prices for S eptem ber and O ctober sh ip m en t now being, stan d ard s 10 % - 10 j 4 cents per pound, choice 1 1 - 1 1 % cents p er pound, and ex tra choice 1 1 % - 1 2 cents per pound, an increase of % cent, ^ cent and % cent per pound, respectively, over prices p re viously announced. A n n ouncem ent w as m ade late in A u g u st by th e C alifornia P ru n e and A pricot G row ers th a t th e heavy carryover of 1920 crop prunes had been largely m arketed as the re su lt of heavy p u rchases by M iddle W e st and E uro p ean b u y ers. O n A u g u st 28th, th is A ssociation increased its 1921 opening prices by one-fourth of a cent per pound. O p ening prices announced by the A ssocia tion com pared w ith 1920, follow : August 17, 1921 (Basis Price) (cents per pound) 1920 (Basis Price) (cents per pound) 30-40s................... ........S H -9 40-50s................... ........7 ^ -8 50-60s................... ........6yA-6y2 60-70s................... ........5 ^ -6 70-80s................... ........ 5 y - 5 y 16J4-17 15 -15 1254-13 11 -1 1 ^ 10 -1 0 ^ y2 I t has su b seq u en tly been reported th a t the O regon and W a sh in g to n g ro w e rs’ associations have tem p o ra rily w ith d raw n from th e m ark et because th e am o u n t of sales already booked ap proxim ated th e sm all yields in prospect. Cali fornia grow ers of p runes are rep o rted to be receiving 5 to 6 cents per pound for th eir p ro d u ct, com pared w ith 1 1 to 12 cents last year. T h e prune crop in C alifornia is estim ated to be less th an 90,000 tons this y ear com pared w ith 95,000 tons in 1920. A yield of about 10,000 tons w as predicted in A u g u st for O re gon, ab o u t half th e yield last year. T h e p re sen t prices per pound on 1921 al m onds w hich are one cent above opening prices, as announced by the C alifornia A lm ond G row ers E xchange are as follow s: N onpariel, 24 c e n ts; I. X. L., 24 c e n ts; N e P lus U ltra, 22 cents ; and D rakes, 14% cents. T h e 1920 open ing prices for th e sam e varieties w ere 25, 25, 24 and 17 cents per pound, respectively. A large p a rt of th e C alifornia crop is rep o rted to have been sold on the basis of th e op en in g prices. E stim a te s of th e D e p artm en t of A g ric u ltu re show a gain on S eptem ber 1st, com pared w ith A u g u st 1st, of 7,082,000 bushels in th e p o tato crop of th e U n ited S tates b u t th e Potatoes to tal yield (323,000,000 bush els) is still 105,368,000 bushels below th e estim ated production of last year (428,368,000 b u sh els). C alifornia and O regon crops are re p o rted to have declined in condition d u rin g th e m onth, b u t th e an ticip ated p roduction of th e d istrict closely approxim ates th e 1920 estim ate of 39,414,000 bushels. P rices now being received by grow ers, av er aging $1.25 per h undred pound sack, ap p ro x i m ate those of last year a t this tim e. T h e g en eral tren d of th e m ark e t w hile n o t stead y and continuous has been upw ard, in co n tra st w ith a general dow nw ard tren d a t th is date la st season. T he principal m ark e t facto r a t th e p re sen t tim e is th e prospective dem and from eastern points, due to rep o rted adverse w e ath er conditions in m iddle w estern and eastern g ro w ing areas. T h e heavy carry o v er of 1920 crop po tatoes, w hich by com petition tended to depress th e price of th e early 1921 varieties, has larg ely disappeared. A dditional sta b ility has th u s been afforded th e m arket. T h e percen tag e of condition com pared w ith norm al, th e fore cast of production for S eptem ber 1st, and th e estim ated yield of 1920, are show n in tab le “ B .” (B) Condition o f Potatoes — State Condition Per Cent of Normal Sept. 1, 1921 A rizona ................ U tah ........................ N evada .................. Idaho ..................... W ash in gton ........ O regon ................. California ............. 12th D istr ic t........ U nited S t a t e s . . . . 93 85 82 93 84 78 83 85 63.7 Forecast from Condition Sept. 1, 1921 (bushels) 1920 December Estimate (bushels) 535,000 2,774,000 1,119,000 9,464,000 7,832,000 4,591,000 13,132,000 39,447.000 323,000,000 450,000 3,298,000 1,032,000 7,380,000 8,680,000 5,559,000 13,015,000 39,414,000 428,368,000 (C) Condition o f Hops — Condition Per Cent of Normal Sept. 1, 10-Year Av. 1921 (Aug. 1) State W ash in gton ....................... O regon ................................ California ............................ T w elfth D istr ic t................ U nited S ta te s ..................... ................... ................... ................... ................... ................... 85 77 78 80 81 93 88 93 91 89.5 Forecast from Condition Sept. 1, 1921 (pounds) 1920 December Estimate (pounds) 1921 Preliminary Area (acres) 4.080.000 9.450.000 15.912.000 29.442.000 31,000,000 5,730,000 9,900,000 21,000,000 36,630,000 38,918,000 3,000 11,800 12,000 26,800 28,500 5 Federal Reserve Bank of San Francisco H a rv e stin g of early varieties of hops oc curred d u rin g A u g u st in C alifornia, O regon and W ash in g to n , and in som e localities picking of th e later m a tu rin g (clu ster) crop H o p s had com m enced. T h e estim ated p roduction for this d istrict is 29,442,000 pounds com pared w ith th e D ecem ber, 1920, estim ate of 36,630,000, and th ere is an estim ated sh o rtag e in th e U nited S tates, com pared w ith last y ear of 7,918,000 pounds. In consequence of a rep o rted shortage in all o th er hop gro w in g d istricts of the w orld and b u y in g by dealers in expectation of higher values, th e m ark et for this com m odity has m anifested a brisk revival d u rin g the p ast few m onths. H ops of the 1920 crop, of w hich th ere is reported a carry o v er of 3,700,000 pounds (20,000 bales of 185 pounds n et per bale) are being sold readily at prices ran g in g from 18 cents to 24 cents per pound, com pared w ith 13 cents to 15 cents at th e beginning of th is year. G row ers are being offered from 28 cents to 35 cents per pound for 1921 crop hops com pared w ith opening prices of 55 cents to 65 cents in 1920. T h e condition of the hop crop on S eptem ber 1 st, com pared w ith norm al and th e production estim ated by the U nited S tates D e p artm en t of A g ric u ltu re are show n in table “ C” on opposite page. N ew Y ork is the only o th er d istrict w hich produces a crop of com m ercial im p o rt ance, h av ing 1,500 acres of a to tal of 28,500 in th e U n ited States. D espite insufficient m oisture in local areas, g eneral range conditions in all states of this d istric t are above the average for th is tim e of year. In A rizona, as a re su lt of favorable ran g e conditions, fat range ca ttle are being shipped to m ark et and m any ca ttle th a t w ere shipped o u t of th e state d u rin g th e d ro u g h t L ivestock are being retu rn ed to hom e p as tures. D espite a slig h t decline in N evada, ranges are still reported 98 per cent of norm al, w hile U ta h ranges are rep o rted 15 p oints above th e average of 83. W ash in g to n , O regon, C alifornia and Idaho are rep o rted 85, 88 , 83 and 82 per cent of norm al, respectively. R eceipts of cattle and hogs at the principal m arkets of th e d istrict d u rin g A u g u st w ere slig h tly below th e Ju ly figures b u t approxi m ated th e figures of A ugust, 1920. In P o rt land and S alt L ake C ity an increase w as evi dent in receipts of sheep and calves, com pared w ith July, b u t both w ere below th e figures of A ugust, 1920. T h e sm all num ber of receipts, especially of feeder cattle, d u rin g th e p ast few m onths, com pared w ith a sim ilar period in p re vious years, is a ttrib u te d to excellent range conditions, w hich, in view of the low prices for cattle now prevailing w ould induce grow ers to hold th eir stock u ntil it is fully prepared for m arket. R eceipts of livestock a t the five p rin cipal m arkets of th e d istrict during A ugu st, 1921, and 1920, are show n in table “D .” S light change occurred in prices of livestock com pared w ith July. H ogs continue to com m and favorable prices, especially in th e Pacific N o rth w est, as th e packing season is a t hand, and supply in th is d istrict continues sh o rt of dem and. T h e range of livestock prices a t th e five principal m arkets of the d istric t is show n in table “ E ” (D ) Receipts o f Livestock — Cattle Calves Aug. Aug. 1921 1920 Hogs Sheep Horses and Mules Aug. Aug. 1921 1920 Aug. 1921 Aug. 1920 Aug. 1921 Aug. 1920 12,471 1,179 3,075 3,270 2,293 35,516 33,075 7,572 6,724 2,428 25,388 49,812 5,896 9,121 4,432 28 50 131 20 16 161 22,288 85,315 94,649 78 328 Aug. 1921 Aug. 1920 P o rtlan d ........... Salt Lake City ..... Seattle ............... Spokane ........... T acom a ............. 9,691 3,132 3,330 2,175 1,673 13,249 1,936 5,604 5,118 1,688 1,099 313 197 292 146 2,037 3Í9 534 582 9,198 3,542 4,173 1,856 2,404 T o tal .............. 20,001 27,595 2,047 3,472 21,173 (E ) R ange in Livestock Prices — Week of Highest and Lowest Average Top Prices Per Hundredweight Received at Above Markets During August. Fat Steers Cows Calves Hogs Aug. 1...................... $5.00—7.00 Aug. 8 ...................... 5.25—6.50 Aug. 15...................... 5.00—6.50 Aug. 22...................... 5.75—6.50 Aug. 29...................... 5.75—6.50 $4.00—5.25 4.00—5.75 4.00—5.75 4.00—5.75 4.50—5.75 $6.00—11.00 6.00—11.00 6.00— 10.50 6.00— 11.00 8.00— 11.00 $10.50— 12.75 10.25— 13.00 11.00— 12.50 10.00— 12.00 9.35— 11.00 Lambs $6.00—8.00 6.00—7.25 6.00—7.25 6.00—8.25 6.50—7.50 Agricultural and Business Conditions 6 T he tren d of prices in th e U nited S tates from 1913 to M ay, 1921, of th e farm price of live cattle, the w holesale price of fresh beef and the retail price of chuck ro a st is show n in th e ac com panying chart. T h e average price paid to m ilk p rod u cers d u rin g A ugust, by fluid m ilk d istrib u to rs (p re sented in table “ G” ), advanced th re e cen ts p er h undred pounds in th e M ountain section and declined six cents per h undred pounds in th e Pacific section com pared w ith Ju ly , 1921, and rep resen ted a decline of 58 cents and 93 cents, respectively, com pared w ith A ugust, 1920. Some actual im provem ent in dem and for and stiffening of prices in th e up p er grad es of D ouglas fir, sta tio n a ry or declining prices for C alifornia redw ood, and w h ite and Lum ber su g ar pine, and decidedly m ore ho p e ful feeling as to fu tu re business p ro s pects, sum m arizes th e situ atio n in th e lu m b er industry. A u g u st production of lum ber (356,233,000 feet) according to re p o rts from th e four lu m ber associations in this d istric t w as 26,890,000 feet g re a te r th a n Ju ly cut, an increase of 8.1 per cent. In th e co rresponding four w eeks of A u g u st, 1920, th e cu t w as rep o rted to be 468,491,000 feet. A b o u t 75 p er cent of th e lu m b er in the United States, 1913-1921 A m arked falling off in receipts of fresh b u t te r caused by th e seasonal decline in its produc tio n and a continued stro n g consum ing dem and caused a heavy reduction (752,077 Dairy pounds) in cold sto rag e holdings in Products th e four principal m ark ets of this d istrict d u rin g A ugust. H oldings on S eptem ber 1st, to taled 2,418,727 pounds, com pared w ith 3,854,357 pounds on th a t date in 1920, a decrease of 39 per cent. T h e w holesale price of 93 score fresh cream ery b u tte r rose from 41% cents per pound on A u g u s t 1st, to 43y2 cents per pound S eptem ber 1st, com pared w ith 66 cents on S eptem ber 1, 1920. E a ste rn m arkets did n o t show p ro p o rtio n ate s tre n g th and shipm ents of outside b u tte r into C alifornia w ere m ade. A statem en t of the m ovem ent of stocks of cold sto rag e b u t te r d u rin g A u g u st, 1921 and 1920, and holdings on S eptem ber 1st a t th e four principal m arkets in th is d istrict are show n in table “F .” (jH) Lum ber — A verage N o. of M ills reporting . Cut* ............. Shipm ents* . W e st C o a st L u m b erm en s* A s s o c ia tio n Aug. 27 July 30 Aug. 27 July 30 106 232,950 249,978 241,778 106 189,471 200,157 181,207 40 72,133 66,136 63,550 44 88,191 58,002 59,650 * In th o u san d s of feet. W e ste r n P in e M a n u fa c tu r e r s ’ A s s o c ia tio n OF) M ovement o f Stocks o f Cold Storage B utter — Aug., 1921 Net Decrease (Pounds) City L os A n g e le s ... 13,648* Portland ......... 133,988 San F rancisco. 301,772 Seattle ............. 329,965 T o tal ........... 752,077 Aug., 1920 N et Decrease (Pounds) 30,350 204,881 471,571 253,325 Sept. 1, Sept. l f 1921 1920 Holdings Holdings (Pounds) (Pounds) 698,014 303,664 1,059,261 357,788 964,374 673,301 1,087,435 1,129,247 960,127 2,418,727 3,854,357 ^In crease. (G ) Prices R eceived by M ilk Producers *— Aug., 1921 Range Section! M ountain (5 M k ts .). ,$1.73-$2.74 Pacific (11 M k t s .) .... 1.67- 3.22 U. S. (112 M k t s . ) . . . . 1.59- 5.82 Aug., 1921 Average July, 1921 Average $2.43 2.72 2.91 $2.39 2.78 2.81 Aug., 1920 Average $3.01 3.65 3.59 *A11 prices p e r hundred w eig h t fo r m ilk te stin g 3.5 per c en t b u tte r fat. fM o u n ta in section includes Idaho, U ta h , N evada an d A rizona. P acific section includes W ashington, O regon an d C alifornia. C a lif o r n ia W h ite a n d S u g a r P in e M a n u fa c tu r e r s ' A s s o c ia tio n C a lif o r n ia R edw ood. A s s o c ia tio n -1921—Four Weeks Ending— Aug. 27 Aug. 27 July 30 7 23,978 11,903 9,064 7 28,558 13,338 13,039 10 27,172 8,924 16,924 July 30 Aug. 27 July 30 11 23,123 15,230 9,520 163 356,233 336,941 331,316 168 329,343 286,727 263,416 7 Federal Reserve Bank of San Francisco mill capacity in th e Pacific N o rth w e st and 60 per cent in th e In lan d E m pire is reported as being in operation, w hile logging operations are rep o rted as 40 per cent of norm al. S hip m ents and orders k ep t pace w ith th e increased cut and w ere g re a te r th an in July. O rders are rep o rted to require m uch sales effort, b u t in creased from 263,416,000 feet in Ju ly to 331,316.000 feet in A u g u st, or 25.7 per cent. Ship m ents m ade d u rin g th e m onth to taled 336,941.000 feet com pared w ith 286,727,000 feet in July, an increase of 17.5 per cent. S hipm ents of lum ber by w a te r to th e A tlan tic seaboard have increased 5,868 per cent d u rin g the first six m o n th s of 1921, com pared w ith th e sam e period in 1920. N o tw ith stan d in g th e trem e n dous increase in w a te r m ovem ent, th e to tal volum e of business of Pacific N o rth w e st mills in A tlan tic C oast m arkets is stated to be less th a n it w as a year ago, indicating a heavy decline in rail shipm ents. T he re p o rt of the Pacific L um ber Inspection B ureau reveals gains in w aterborne shipm ents to all d estin a tions at nine cargo m arkets and losses in a like nu m b er w ith a net loss of 13 per cent. S hip m en ts to E uropean m arkets show a decline of ap p ro x im ately 52 per cent, to th e W e st C oast of S outh A m erica of 41 per cent, to A u stralia of 58 per cent, and to C hina of 12 per cent. S hipm ents to Jap an w hich is rebuilding six of h er larg est cities, show ed an increase of 31 p er cent. All com parisons are of th e first six m o n th s of 1921, w ith th e first six m onths of 1920. L ittle change appears in th e log m arket. Stocks are being reduced grad u ally and the ten d en cy is to log as little as possible and to use up all available m aterial. I t is reported th a t m ills ow ning stum page are v irtu ally the only ones cutting, com m ercial loggers p referring n o t to trad e except on a “cam p ru n ” basis (all logs from a given o p eratio n ), w hile m ills desire to p urchase on a stum page, or graded basis, asse rtin g th a t the lum ber m ark et will not w a r ra n t b uying in any o th er m anner a t this time. T h e shingle m ark et has been active during th e m onth. T h e increase in th e volum e of business is cu sto m ary a t th is season of th e y ear w hich is th a t of heaviest dem and for shingles, especially for rep air purposes. C om parative figures of cut, orders and ship m ents of th e re p o rtin g m ills of th e four lum ber associations in this d istrict are show n in table “H ” on opposite page. O f 15 of the principal copper m ining com panies in th is d istrict (w hich a year ago p ro duced slig h tly over half the crude copper p ro duced in th e U n ited S tates) only tw o M ining are now operating, th e m ajo rity of th e o th ers h aving ceased operations last A pril. In Ju n e the o u tp u t of th e tw o producers w as 5,239,000 pounds, com pared w ith 8,064,000 pounds in June, 1920. T he production of th e 13 com panies now inoperative was, in June, 1920, 54,462,000 pounds. L ow er prices characterized th e copper m ar ket in A ugust, th e average price d u rin g th e m onth for electrolytic copper, n et refinery, in N ew Y ork having been 11.71 cents per pound, com pared w ith average prices of 12.46 cents in Ju ly and 19 cents in A ugust, 1920. A stiffen ing of prices upon good export dem and w as noted in th e first w eek of Septem ber. Sales of copper generally continue larg er th a n w orld production of th e m etal. C om parative figures of the o u tp u t of lead, silver and gold by 1 1 re p o rtin g m ines in th is d istrict in July, 1921, June, 1921, and July, 1920, are show n in th e follow ing t a b le : July, 1921 Lead (lb s .) ...........10,512,687 Silver ( o z .) .......... 369,743 Gold ( o z .) ............. 33,277 June, 1921 July, 1920 10,732,954 358,519 32,321 7,980,006 340,279 25,094 N o tw ith stan d in g a decline in actual am ou n t of oil raised (d u rin g A u g u st as com pared w ith Ju ly ) production of petroleum in C alifornia continued g re a te r th an consum pP etroleum tion, due to a m ore th an corre sponding decline in the latter. Stored stocks w ere consequently increased and at the end of the m onth to taled 33,829,725 b a r rels, an increase of 2,195,546 barrels over the previous record figure of 31,634,179 barrels at the close of July. A verage daily production of (I) Petroleum — August, 1921 P roduction (daily a v e r a g e )..................... 323,616 bbls. Shipm ents (daily a v e r a g e )....................... 252,792 bbls. Stored Stocks (end of m o n th )............... 33,829,725 bbls. N ew W ells O p en ed ..................................... ...............83 W ith D aily P ro d u ctio n .......................... 20,895 bbls. W ells A b an d oned ........................................ ................ 3 July, 1921 331,252 bbls. 271,073 bbls. 31,634,179 bbls. 76 19,675 bbls. 5 August, 1920 290,590 bbls. 321,955 bbls. 23,434,464 bbls. 56 20,550 bbls. 5 Agricultural and Business Conditions 8 p etro leum d u rin g A u g u st w as 323,616 barrels, T h e to tal o u tp u t of electric en erg y of th e an increase of 33,026 barrels a day, com pared re p o rtin g com panies d u rin g July, 1921, in w ith A ugust, 1920, and a decrease of 7,636 b a r creased 9 per cent com pared w ith July , 1920, rels a day com pared w ith July, 1921. D aily and 18 per cent com pared w ith June, 1921. T h e sh ip m ents in A u g u st w ere also less th an in developm ent of new hydroelectric en terp rises Ju ly , av erag in g 252,792 barrels com pared w ith is reflected in th e com parison of th e o u tp u t of 271,073 b arrels th e previous m onth, a decrease steam g enerated and h y d ro-generated pow er of 18,281 barrels. in use this y ear and last. S tatistics on the electrical pow er in d u stry E ig h ty -th ree new w ells w ere opened during th e m onth w ith an initial daily production of of th e S tate of C alifornia as rep o rted by eig h t 20,895 barrels and th ree wells w ere abandoned, of th e principal pow er com panies are show n an increase of 80 p roducing wells. in table “J .” S tatistics on oil field operations furnished T he U nited S tates B ureau of C ensus figuresby th e S tan d ard Oil C om pany of C alifornia of the resu lts of th e census of m anufactu res in are show n in table “I ” on preceding page. th e state of O regon for 1919 and 1914 are presen ted in tab le “K .” T h ese R ep orts received by this bank from eight of th e principal pow er com panies in C alifornia, O regon figures exclude the h and trad es, covering th e ir operations in the m onth of July, M anufactures building trad e s and n eig h b o r hood industries, and tak e into 1921, indicate th a t sales of electric E lectric energy for in d u strial purposes w ere account only estab lish m en ts conducted u n d er Pow er 25.9 per cent g re a te r th a n in June, th e factory system . T h e su m m ary show s a co n sisten 1921, and closely approxim ated fig t increase d u rin g th e period 1914ures for July, 1920. T h e increase over June, 1919. T h e value of n et sales d u rin g A u g u st of 31 1921, w as due chiefly to seasonal dem and for pow er to operate pum ps in ag ric u ltu ral dis re p resen tativ e d ep a rtm en t sto res in th is dis tricts, due to dim inishing flow of surface tric t was 6.2 per cent less th a n th e value of w ater. such sales in A ugust, 1920. A pp ro x im ately th e (J) Electric Pow er — Plant Capacity K. V. A. July, June, July, 1921 1921 1920 Type of Plant Peakload K. W. July, June, July, 1921 1921 1920 July, 1921 Plant Output K. W. H. June, July, 1921 1920 (a ) H ydro 5 1 6 ,0 2 0 5 0 9 ,6 2 0 4 1 4 ,2 7 0 (b) (c) Steam .................................. 316,995 P u rch a sed ......................................... 303,295 .... 270,160 .... 386,522 177,690 53,125 399,548 135,052 56,290 315,590 228,805 33,425 250,441,090 51,519,891 33,182,720 244,495,918 37,764,569 ___ 182,628,840 105,073,210 20,057,876 T o tal ......................................... 833,015 812,915 684,430 617,337 652,590* 577,820 335,143,700 282,260,48 7 307,759,926 Pow er ........................ Number of Industrial Consumers and Sales: Number of Industrial Consumers July, June, July» 1921 1920 1921 54,265 38,402 50,180 Connected Industrial Load H . P. July, June, July, 1921 1921 1920 1,261,744 1,235,854 1,095,819 Industrial Sales K. W. H . July, June, July, 1921 1921 1920 200,658,960 159,776,640 200,821,624 *61,700 K . W . included in to ta l b u t n o t in segregated figures. (K) Oregon M anufactures — 1919 Num ber of e sta b lish m en ts............................................... 2,707 68,004 Persons en gaged in m an ufactures................................ 2,540 P roprietors and firm m em b ers.................................. 6,905 Salaried e m p lo y ees.......................................................... 58,559 W age earners (average n u m b er)............................ 303,751 Prim ary h o rsep o w er........................................................... $439,982,000 Capital .................................................................................... 94,986,000 Services .................................................................................. 13,999,000 Salaries ............................................................................... 80,987,000 W ages ................................................................................ 206,206,000 M aterials ............................................................................... 366,783,000 Value of p rod u cts............................................................... Value added by manufacture (value of products less 5 106,577,000 cost of m a te r ia ls)............................................................ Census 1914 ^ Per Cent of Increase 1914-1919 2,320 35,449 2,189 4,431 28,829 219,222 $139,500,000 26,615,000 5,683,000 20,932,000 63,258,000 109,762,000 16.7 91.8 16.0 55.8 103.1 38.6 215.4 256.9 146.3 286.9 226.0 234.2 46,504,000 245.3 9 Federal Reserve Bank of San Francisco sam e percentage of decline (7.2 per cent) ap pears in com paring n et sales of these stores for th e eig h t m onths ending A u g u st 31, 1921, w ith th eir sales for th e sam e period of last R etail year. A s the average percentage of Trade decline d u rin g this period in th e selling price of th eir w ares reported by these stores is 25 per cent, it w ould appear th a t the q u a n tity of goods m oving over retail counters continues g re a te r to d ay th an it w as a year ago. T h e seasonal increase in A u g u st sales over those of Ju ly w as p artic u la rly noticeable (30 p er cent) in San F rancisco and Los Angeles. T h e average increase over the d istrict w as 20.1 p er cent. T h e average net increase or decrease (— ) d u rin g the p ast m onth in value of net sales in th e rep o rtin g cities of th is d istrict is show n as fo llo w s: Aug., 1921, compared with Aug., 1920 July, 1921 L os A n g e le s ... Oakland ........... Sacram ento .. . Salt Lake City.., San F rancisco. . Seattle ............... Spokane ............ D istrict ............. .4 — 8.4 — 8.5 — 15.5 — 1.6 — 12.5 — 8.6 — 6.2 T h e value (selling price) of stocks of re p o rt ing firms averaged 15.5 per cent low er a t th e close of A u g u st th an at close of A ugust, 1920, and 4.6 per cent g re a te r th a n at close of July, 1921. Collections w ere characterized by the re p o rt ing firms as fo llo w s: N um ber of Firm s Excellent Good Fair 2 11 5 Poor 1 S tatem en ts of increases or decreases (- ) in the value of n et sales of rep o rtin g retail firms d u rin g A ugust, 1921, com pared w ith July, 1921, and A ugust, 1920, and th e first eight m onths of 1921 com pared w ith th e first eight m onths of 1920 are show n in table “ L .” Eight months ending Aug. 31, 1921, compared to eight months ending Aug. 31, 1920 6.0 — 2.6 — 9.4 — 6.9 4.6 — 15.6 — 10.4 — 7.2 29.3 10.6 5.6 — 10.4 30.2 2.8 17.1 20.1 T h e am o unt of th e average sale (cash, charge, C. O. D.) reported by 12 firm s w as $2.51 in A u gust, com pared w ith $2.34 in Ju ly and $2.98 in A u gust, 1920. F ollow ing is a statem en t of th e average sale (cash, charge and C. O. D.) in Los A ngeles, San F rancisco and S eattle, and th e district. Aug., 1921 July, 1921 Aug., 1920 L os A n g e le s............$ 3.19 San F ra n cisco ........ 3.05 Seattle ..................... 2.01 $ 2.83 2.64 1.60 $ 4.37 3.18 1.73 D is t r ic t .................... $ 2.51 $ 2.34 $ 2.98 N et Sales of 22 Department Stores in Twelfth Federal Reserve District (in M illions of Dollars) (L) R etail Trade A ctivity — CONDITION OF RETAIL TRADE DURING AUGUST, 1921 In Federal Reserve District No. 12 (31 Stores R ep ortin g) P ercentage increase or decrease of net sales during A ugust, 1921, over net sales during same m onth last y ea r.............................. P ercentage increase or decrease of net sales during A ugust, 1921, over net sales during July, 1921 .................................................... P ercentage increase or decrease of net sales from January, 1921, to A ugust 31, 1921, inclusive, over net sales during sam e per iod last y e a r .................................... Los Angeles Oakland Sacramento Salt Lake San City Francisco .4 — 8.4 — 8.5 — 15.5 29.3 10.6 5.6 6.0 — 2.6 — 9.4 Seattle Spokane District — 1.6 -12.5 — 8.6 — 10.4 30.2 2.8 17.1 20.1 6.9 — 4.6 — 15.6 -10.4 — 7.2 Agricultural and Business Conditions 10 R ep orts from 181 w holesale firm s in ten lines of business in th is d istrict show th at, w ith the exception of groceries and autom otive equip m ent w here decreases are noted, W h o lesale the value of net sales w as g re ater T ra d e in A u g u st th an in July, indicating th a t retailers are stocking th eir shelves. F o r the first eight m onths of 1921 as com pared w ith 1920, decreases in value of sales ra n g in g from 17.8 per cent in autom obile tires to 49.2 per cent in ag ricu ltu ral im ple m ents, w ere reported. T he average n et in crease or decrease (— ) in the value of sales of ten re p o rtin g lines of business w as as fo llo w s: A g ric u ltu ra l Im p le m e n ts . . A u to T ir e s ........ A u to S u p p lies.. . D ru g s ............... . D ry G o o d s ......... F u rn itu re ......... G ro ceries ......... H a rd w a re ......... S hoes ................ S ta tio n e ry ........ Eight months ending Aug., 1921, Aug. 31, 1921 compared with compared with same Aug., 1920 J u ly ,1921 period in 1920 — 44.6 — 18.5 — 11.4 — 17.6 — 41.1 — 17.3 — 28.2 — 30.0 — 22.5 — 27.8 11.8 6.7 — 3.7 7.6 29.0 18.9 — 9.8 6.9 29.8 36.1 — 49.2 — 17.8 — 23.9 — 20.6 — 36.5 — 32.0 —25.6 — 33.2 — 28.0 — 23.1 T h e m ajo rity of rep o rts received indicate th a t sum m er orders for fall deliveries have been co nsiderably few er in all lines th a n last year. P rices d u rin g th e m onth w ere reported steady in all lines w ith the exception of w holesale groceries w here a slig h t upw ard tendency was indicated by a m ajo rity of the re p o rtin g w hole sale grocery firms. United States Department of Labor Index Numbers of Wholesale and Retail Prices W holesale Prices—327 Commodities R etail Food Prices— 22 articles in 1920; 43 in 1921 O ne hundred and seven w holesale firm s in all lines reported th a t th e p ercen tag e of th e ir collections d u rin g A u g u st, 1921, to th e to tal am ount due from custom ers (o u tstan d in g ) on A u g u st 1, 1921, and 1920 w as as fo llo w s: Aug. 1,1921 A g ric u ltu ra l Im p k A u to m o tiv e Suppl A u to m o b ile T ire s . D ru g s ..................... D ry G o o d s.............. G ro ceries H a rd w a re S hoes . . . . 35.2 61.3 60.0 91.9 35.0 51.6 82.0 46.3 40.7 , 53.0 Aug. 1, 1920 36.7 62.4 62.0 76.4 35.0 48.0 84.3 52.4 37.0 57.9 (M) W holesale Trade — ( la ) P ercentage increase or decrease (— ) in net sales for A ugust, 1921, over A u gu st, 1920 Agricultural N u m b e r of re Implements p o rtin g firm s .. 20 L o s A n g e le s ... 83.S P o rtla n d ........... — 49.5 S a c ra m e n to .. . S a lt L ak e C ity .,..— 23.5 S an F ra n c isc o .,..— 82.0 S e attle ............... S p okane ........... — 60.2 T a c o m a ............ D istric t ............. — 44.6 ( lb ) 20 — 11.3 — 16.6 — 22.4 9.0 — 30.3 — 23.0 — Ì8.5 13 — 16.0 38.8 —22.6 31.3 19.2 — Ü .4 Drugs 8 Dry Goods 10 Furniture 15 — 13.9 — 11.6 — 28.1 — 40.6 — 43.4 — Ì7.6 —4 0 — 22.0 — 17.3 Groceries Hardware 29 — 23.9 — 30.4 — 28.6 — 16.8 — 32.6 23 — 2.9 — 36.4 — 15.7 — 34.5 — 30.5 — 32.6 — 27.1 4.0 — 30.0 — 37.2 — 15.5 — 28.2 Shoes 13 — 3Ì.7 — Ì8.5 — 17.5 — 22.5 Stationery 28 — 22.2 — 25.6 — 4Ì.5 — 35.5 — 11.3 — 22.0 — 23.6 — 27.8 P ercen tage increase or decrease (— ) in net sales for January 1, to A u gu st 31, 1921, over sam e period la st year Agricultural Auto Implements Supplies Auto Tires N u m b e r of re p o rtin g firm s .. 20 L os A n g e le s ... .— 60.1 P o rtla n d ........... ,— 60.0 S a c ra m e n to .. . S alt L ak e C ity . . ‘.— 48.1 San F ra n c isc o .,..— 60.8 S eattle .............. S pokan e ........... — 57.5 T a c o m a ............ D is tric t ............. — 49.2 Auto Supplies Auto Tires 20 — 11.3 — 28.5 — 20.0 — 23.9 — 38.5 —23.9 13 — 17.9 — Ì8.6 — 36.3 —22.3 — 30.6 — Ì7.8 Drugs 8 Dry Goods 10 Furniture 15 — 24.4 — 30.5 — 4Ì .7 29 — 11.5 — 32.6 — 19.7 — 31.4 — 25.0 — 4Ó.4 — 32.0 — 3Ì.3 — 29.1 —25.6 — 49.0 — 34.7 — 45.6 — 20.6 — 36.5 Groceries Hardware 23 — 32.8 — 31.3 — 21.3 — 39.2 — 30.6 — 40.0 — 27.5 — 12.0 — 33.2 Shoes 13 — 38.4 — 23.2 — 40.1 — Ì2.0 — 28.0 Stationery 28 — 15.0 —23.6 — 3Ì.2 — 27.5 —28.7 — 18.0 — 17.2 — 23.1 11 Federal Reserve Bank of San Francisco C ollections w ere rep o rted excellent by five firms, good by 60, fair by 76 and poor by 11. S tatem en ts of increases and decreases in n et sales of re p o rtin g w holesale firm s d u rin g A u gust, 1921, com pared w ith A ugust, 1920, and th e first eig h t m onths of 1921 com pared w ith th e first eig h t m onths of 1920, as show n in table “M ” on opposite page. U n em p loym ent in a few sections of th e dis tric t has been som ew hat relieved d u rin g the m onth by increased ag ricu ltu ral activities, b u t in general th e situ atio n show s little Labor change. R eports indicate 45,000 u n em ployed in C alifornia, w ith condi tions adversely affected by an influx of w orkers from outside points. A re p o rt of th e C alifornia S tate H ig h w ay Com m ission indicates th a t 53 h ig h w ay contracts are now being executed. O regon and W a sh in g to n re p o rt a slig h t in crease in em ploym ent due chiefly to seasonal activities and public w orks. A lth o u g h the de pression in m etal m ining still exists in A rizona, N evada and U tah, increased building activity, civic im provem ents, and railroad dem and have decreased the num ber of unem ployed. U nem p lo y m en t in th e larg er cities of th e d istrict rem ains unchanged over Ju ly and A ugust. P a r t tim e em ploym ent continues in some p lan ts in San Francisco, P o rtlan d , T acom a and Seattle. A ccording to figures com piled by the U n ited S tates E m ploym ent Service, D e p a rt m ent of L abor, from re p o rts received from m an u factu rin g firms em ploying 500 or m ore men, the num ber em ployed in A u g u st com pared w ith Ju ly increased in S eattle (16.9 per cent) and in P o rtla n d (3.1 per cent) and de creased in San F rancisco (8.2 per cent) and in Los A ngeles (1.5 per cen t). T he need for new dw ellings, com bined w ith declining costs of building m aterials and the settlem en t of several w age controversies in the building trades, caused a large B uilding increase in both th e num ber and Activity value of building perm its issued d u rin g A ugust. In San F rancisco w ork has been resum ed on the m ajo rity of those buildings upon w hich operations w ere suspended w hen the building trades stru ck on M ay 13th, last. R eports from the building dep artm en ts in 20 principal cities of th is d istrict show 10,187 perm its issued d u rin g A ugust, 1921, w ith a Building Permits Issued in 20 Principal Cities, Twelfth Federal Reserve District, 1920-1921 valuation of $17,226,365, com pared w ith 7,577 perm its issued in A ugust, 1920, w ith a valu a tion of $15,079,736, or an increase of 33.1 per (N) Building Perm its — No. August, 1921 Value B erkeley ................... 130 $ B oise .......................... 110 Fresno ...................... 199 L on g B ea ch .............. 300 L os A n g e le s............. 3,554 Oakland .................... 652 O gden ....................... 54 Pasadena .................. 295 P h oen ix .................... 54 P ortland ................... 1,591 R eno ........................... 23 Sacram ento ............. 260 Salt Lake C ity ......... 160 San D ie g o ................. 365 San J o s e .................... 46 San F ra n cisco ........... 381 Seattle ....................... 1,113 Spokane .................... 251 Stockton ................... 88 T acom a .................... 561 T o ta l ..................... 1 0 ,1 8 7 248,664 64,327 383,572 889,164 7,015,861 1,852,609 115,600 566,531 58,344 1,486,982 54,375 348,788 346,620 442,109 39,075 1,316,937 1,340,430 222,992 115,140 318,245 $ 1 7 ,2 2 6 ,3 6 5 v, 1921 No. Value No. August, 1920 Value Per Cent Increase or Decrease (—) Aug., 1921 over Aug., 1920 131 61 169 206 2,717 492 48 274 60 1,119 26 175 117 319 64 446 825 217 51 408 $ 161,760 295,342 202,406 516,700 5,503,363 1,162,628 119,040 701,247 110,354 1,446,324 50,500 183,417 363,182 385,138 79,913 1,000,240 2,217,270 180,775 365,218 253,881 I ll 78 126 368 2,643 438 20 257 118 1,039 7 82 62 225 54 452 904 156 69 353 $ 405,625 37,640 178,040 969,699 6,970,312 672,074 76,900 291,646 293,351 1,022,115 3,850 137,665 137,480 482,714 243,479 1,517,916 1,072,065 260,810 93,379 212,976 — 38.7 70.9 115.4 — 8.2 .6 175.8 50.3 94.2 — 80.1 45.4 1,312.3 153.3 152.1 — 8.4 — 83.9 — 13.2 25.0 — 14.5 23.3 49.4 7 ,9 2 5 $15,298,698 7,577 .$15,079,736 14.2 12 Agricultural and Business Conditions cen t in n u m b er and 13.5 per cent in value d u r in g th e year. C om pared w ith July, 1921, the A u g u st building p erm its w ere 27.3 per cent g re a te r in n um ber and 11.9 per cent in value. A s has been previously suggested, th e m easure of b u ilding activ ity m ay be had m ore accur ately from a com parison of the num ber of p er m its issued d u rin g th e periods u n d er review th a n from a com parison of th e value of con stru ctio n authorized, th e la tte r n o t being fairly com parable on account of the su b stan tial price changes of th e p a st year. T h e c h a rt on page 11 show s th e num ber, to ta l v alu atio n and average value of building p erm its issued in th is d istrict by m onths since Ja n u a ry , 1920. C om parative figures of the num ber and value of p erm its issued in 20 re p o rtin g cities durin g A u g u st, 1921, July, 1921, and A ugust, 1920, are show n in table “N ” on preceding page. B usiness failures in th e T w elfth F ederal R e serve D istric t w ere ab o u t the sam e in num ber, b u t 35 p er cent less in liabilities th an th ey w ere in Ju ly , 1921, and g re a te r in both B u sin ess respects th a n in A ugust, 1920. T he F a ilu re s to ta l liabilities of 150 failures in A u g u st w ere $2,936,363, com pared w ith liabilities of $4,536,868 for 151 failures in Ju ly , 1921. C om pared w ith A ugust, 1920, the n u m b er of failures increased by 60 (66 2-3 per cen t) and the am o u n t of liabilities increased $1,929,125 or 191.5 per cent. L iabilities of the Business Failures, Twelfth Federal Reserve District, 1920-1921 N o t e — T he great increase in lia b ilitie s in June, 1920, was due to the failure of one concern in Seattle, W ashington. average failure in th e d istric t w ere $19,575, com pared w ith $30,045 in July, 1921, and $11,191 in A ugust, 1920. R. G. D un and C om p an y ’s com parative figures for th e states of th is dis tric t are show n in tab le “O .” T o tal paym ents th ro u g h th e banks (clear ings) in the 20 re p o rtin g cities of th e dis tric t d u rin g A u g u st to taled $1,405,522,000, a decrease of $175,293,000, or 11.0 B ank per cent, from A ugust, 1920, and an C learings increase of $57,270,000, or 4.2 p er cent, over Ju ly , 1921. A u g u st clearings m ake a b e tte r show ing as com pared w ith A ugust, 1920, th a n have o th er recen t m onths com pared w ith th e sam e m on th s of 1920. T h e 11 per cent decrease for A u g u st, IMU.ÙCNS----------------------------------------------------------------------------------------------------------- MILLIONS \ \ \ v ! V r V / V \ kv — / V \ V \ A / \ \l \ y /X V a 3 5 S 7 3 9 IO lt 12 2 3 A , s a Bank Clearings in 20 Principal Cities, Twelfth Federal Reserve District, 1920-1921. (In M illions of D ollars) com pared w ith A ugust, 1920, is th e sm allest decrease noted in any m onth th is year, w ith th e exception of the sh o rt m onth of F eb ru a ry . T h e average decline in w holesale and retail prices d u rin g the y ear ending in A u g u st is considerably in excess of 1 1 per cent and it w ould appear th a t the physical volum e of b u si ness tran sa cted in A u g u st w as som ew hat g re a te r th an it w as in A u g u st, 1920. T h e only increases in A u g u st of th is y ear over A ugust, 1920, w ere rep o rted from B erk e ley (20.0 per cen t), L ong B each (26.0 per ce n t), L os A ngeles (6.4 per cen t), O akland (4.6 per cen t), and P asad en a (17.1 per cen t). C om parative figures of clearings for th e 20 re p o rtin g cities are show n in tab le “ P ” on opposite page. (O) Business Failures — No. A rizona .......................... C alifornia ..................... Idaho ............................. N evada .......................... O regon .......................... Utah ............................... W ashin gton ................ ................... 4 ................... 83 ................... 11 ............... 0 ................... 22 ................... 5 ................... 25 D istrict .......................... ................... 150 August, 1921 Liabilities $ No. 1,200 1,541,075 129,601 0 629,2,06 32,780 602,501 8 72 11 0 30 6 24 $2,936,363 151 July, 1921 Liabilities No. August, 1920 Liabilities 64,800 2,285,031 56,832 0 980,020 133,582 1,016,603 0 41 5 1 16 6 21 $ $4,536,868 90 $1,007,238 $ 0 209,254 33,844 1,000 263,658 131,882 367,600 13 Federal Reserve Bank of San Francisco T h e im provem ent noted in the discount m ar k et for acceptances la st m onth has continued d u rin g th e m onth ending S eptem ber 15th. T his has been reflected not so m uch Acceptance in a larg e r volum e of sales as in Market a general broadening of the de m and, w hich has spread slightly m ore in th e N o rth w est. T he so u th ern section of C alifornia w ith a few notable exceptions is still g en erally ou t of the m arket. W ith a slig h t revival of foreign trad e and th e n ecessity for m oving C oast crops, the sup ply of bills o rig in atin g in this d istrict has be com e larger. T his supply has by no m eans, how ever, reached a point sufficient to supply even a m ajo rity of the C oast dem and for ac ceptances. Bills of four, five and six m onths duratio n are b eg inning to m ake th e ir appearance in increasin g num bers. A fter a slig h t hesitancy, th e m ark e t has begun to absorb this new ty p e of acceptance w ith increasing readiness, es pecially bills w ith a m a tu rity of around 120 days. T h e decline in the open m ark et ra te w hich sta rte d early in Ju n e has been arrested, at least tem p orarily, and rates have been steady d u rin g th e w hole m onth a t th e follow ing fig ures : 30 days E ligible m em ber banks 5% E ligible non-m em bers.. 5^4% 60 days 5% 5^4% 90 days 5% 5^4% R eports from 37 of the principal accepting b anks of the d istrict show a to tal of $3,377,000 of bills accepted d u rin g A ugust, $2,996,000 of acceptances purchased, and a to tal in portfolios a t the end of th e m onth of $4,075,000. T h eir rep o rts indicate th a t canned goods w ere th e principal com m odity upon w hich acceptance tran sactio n s w ere based, followed by sugar, grains and m iscellaneous im port com m odities from the O rien t and C entral A m erica, chief am ong w hich w as silk. Six firms are reported to have draw n acceptances for the first tim e durin g th e m onth. O n S eptem ber 9, 1921, the S ecretary of th e T re asu ry announced to the banking in s titu tions of th e co u n try an offering of T h ree-y ear 5 Y2 °/o T re asu ry N otes, G overnm ent S eptem ber 15, 1921, due SepFinancing tem b er 15, 1924; O ne-year 5% % T re a su ry C ertificates of In d e b t edness, dated S eptem ber 15, 1921, due S eptem b er 15, 1922; S ix-m onths’ 5% T re a su ry Certifi cates of Indebtedness, dated S eptem ber 15, 1921, due M arch 15, 1922; the com bined offer ing to be $600,000,000. S ubscription books w ere closed a t noon, S eptem ber 15, 1921. T he to tal am ount of sub scriptions received th ro u g h o u t the country w as $1,587,838,900, and th e to tal am ount allotted w as $698,149,100. T h e T w elfth F ederal R e serve D istrict reported to tal subscriptions of $45,750,000, and w as allotted $42,700,000. T h e heavy over-subscription indicates an unsatisfied dem and for sh o rt-term G overnm ent securities, an indication confirm ed by th e g ra d ual advance in m ark et quotations of the sh o rt m a tu rity G overnm ent bonds and notes. (P ) B ank Clearings *— August, 1921 Bakersfield ........................................ B erkeley ............................................. B oise ................................................... Fresno ................................................ L on g B ea ch ....................................... L os A n g e le s ...................................... Oakland ............................................. O gden ................................................. Pasadena .......................................... P ortland ............................................. R eno ................................................... Sacram ento ...................................... Salt Lake C ity .................................. San D ie g o .......................................... San J o s e .............................................. San F ra n cisco ................................... Seattle ................................................. Spokane ............................................ Stockton ............................................ T acom a ............................................. July, 1921 4,507 14,607 4,476 16,070 15,337 329,817 45,785 6,087 11,964 130,150 3,049 23,737 47,965 11,427 7,621 530,300 127,321 41,747 20,343 13,212 5,018 11,552 4,889 13,575 15,125 332,929 42,758 6,081 12,885 107,852 3,059 22,777 47,773 11,421 7,208 514,400 116,696 40,289 18,558 13,407 T otal ............................................ 1,405,522 1 ,3 4 8 ,2 5 2 * (In thousands of dollars.) August, 1920 Per Cent Increase or Decrease (—) August, 1921 over August, 1920 5,030 12,163 — 10.3 17,8Í5 12,168 309,955 43,569 8,522 — *9.7 26.0 6.4 4.6 —25.0 17.1 — 13.3 — 20.8 — 11.5 —22.9 10,211 20.0 150,498 3,852 26,905 61,021 11,741 9,728 645,480 156,990 49,601 24,881 20,685 — 17.8 — 18.5 — 16.3 — 18.2 — 35.0 1 ,5 8 0 ,8 1 5 —11.0 — 2.6 —21.6 dated 14 Agricultural and Business Conditions Savings deposits in th is d istrict (as reported by 79 banks in th e seven principal cities) in creased d u rin g th e m onth ending A u g u st 15th, tw e n ty -th re e h u n d red th s of 1 per Savings cent, being on th a t date $741,206,000 D eposits com pared w ith $739,493,000 on Ju ly 15th. T h e increase in savings de p osits in th e d istric t d u rin g th e y ear ending A u g u st 15th w as 7 p er cent. As com pared w ith last year, increases (nom inal in th e case of P o rtla n d ) are rep o rted for each of th e seven cities except Seattle. T h e g ro w th of savings deposits in th e seven principal cities in th e d istrict is show n in the accom panying table “Q ” and chart. Average Monthly Savings Deposits in Banks in Principal Cities of Twelfth Federal Reserve District, 1919-1921 (In M illions of Dollars) A n easing of approxim ately % Per cen t in the open m arket ra te for prim e com m ercial p aper occurred in th e principal financial cen te rs of th e d istric t d u rin g Interest and A u g u st, and in S eattle th e D iscount Rates cu sto m ary ban k ra te to cus tom ers for sim ilar p ap er de clined from 7Y2 per cent to 7 per cent. O n o th er classes of pap er rates w ere generally u n changed. A statem en t of in te re st and d isco u n t rates charged by banks in F ederal R eserve B ank and B ranch cities of th is d istrict ta b u lated for the th irty day periods ending S eptem b er 10, 1921, and A u g u st 10, 1921, is given in table “R .” L oans and discounts of 66 re p o rtin g m em ber banks in this d istrict reflect th e increased accom m odation to b o rro w ers w hich is cu s to m ary a t th is season of R eporting h arv estin g and m ark e tin g of M ember Banks crops. O n S eptem ber 7th th e y stood a t $876,586,000, an increase of $14,116,000 since A u g u st 3rd, w hen th ey to taled $862,470,000. D u rin g th e sam e period these banks reduced th e ir red is counts w ith th e F ed eral R eserve B ank by nearly $14,000,000, or 25 p er cent, th is figure stan d in g at $39,697,000 on S eptem ber 7th, com pared w ith $53,543,000 on A u g u st 3, 1921. I t w ould appear, therefore, th a t custom ers of th e city m em ber banks are p ay in g off th e ir loans rapidly enough to provide th e banks w ith suf ficient funds to care for seasonal req u irem en ts and in addition to reduce th e ir indebtedness to th e reserve bank. T h ere is to be noted a de cline in th e am ount of 3 y ear U n ited S tates T re a su ry notes held by these banks, th e to tal ( Q) Savings Deposits *— Number of Banks Aug. 15.1921 July 15, 1921 Aug. 15, 1920 Per Cent Increase or Decrease (—) Aug. 15, 1921 over Aug. 15, 19 San F ra n cisco .............. Oakland ....................... Spokane ........................ Seattle ........................... P ortland ...................... Salt Lake C ity ............ L os A n g e le s................ 17 7 6 15 10 10 14 329,482 74,807 13,150 26,765 37,872 22,221 236,909 327,137 73,890 13,355 29,465 36,958 22,295 236,393 303,029 73,314 12,581 36,786 37,802 21,799 207,720 8.7 2.0 4.5 — 27.2 .2 1.9 14.1 T ota ls ................... 79 741,206 739,493 693,031 7.0 * (In thousands of dollars.) (R) Interest an d Discount R ates — Secured by t-------Prime Commercial P aper------- ^ Customers Open M arket Sept. Aug. Sept. Aug. L os A n g e le s ... . Portland ........... , Salt Lake C ity. . San F ra n cisco .. . Seattle ............... . Spokane ........... 7 7 8 6^2 7 7 7 7 8 (*y2 JV2 7 6% -0 - 5% 6Ÿ2 -0 - 6?4 6H -0 - & /2 6% 7 Interbank Loans Sept. Aug. 6^ 7 8 6]/2 7 7 7 7 8 6^2 7 7 Collateral Demand Loans Sept. Aug. 7 7 8 6^ 7 7 7 7 8 6y2 7 7 L. L. Bonds or U. S. Certificates of Indebtedness Sept. Aug. 7 7 8 6^ 7 7 7 7 8 6y2 7 7 15 Federal Reserve Bank of San Francisco (S) 1920, an increase of $22,000,000, or 50 per cent, b u t th a t the rediscounts of city banks, serv ing p rim arily the industrial and business in tere sts of the d istrict w ere on the sam e date $66,000,000 as com pared w ith $83,000,000 on Ju n e 15, 1920, a decrease of $17,000,000, or 20 per cent. P » 60 40 20 Ôj <T» w 2 -c 3; Ui z "3 o 2? •C CM VO H aUJi H ̧J111HH ■ HÜp ll 11 n ¡1n P 1stHi ■ A L L C IT Y B A N K S ui — "D 0 01 O' 1 o o 2 o C CM *5 <4 * 2? UJ Q.h .-e JS Q -led ut. uT u 100 z "3 80 CO z © 3 i 120 PEA K AUG .3 .« being $2,887,000 on S eptem ber 7th, com pared w ith $4,192,000 on A u g u st 3rd, indicating th eir steady ab sorption by p riv ate investors in this district. As the 66 re p o rtin g m em ber banks aforem entioned are all located in one or an o th er of th e seven principal cities of the dis trict, and hence are chiefly engaged in caterin g to th e credit requirem ents of in d u stry and business, th e ir reports do no t indicate the tren d of bank credit developm ents in the sm aller cities and co u n try d istricts w here the banks serve p rim arily those engaged in ag ri cu ltu ral activities, including the livestock in d u stry . S tatistics are m aintained by this of fice sh ow ing th e rediscount activities of all co u n try banks and all city banks separately, and grap h ic exhibits of th e course of such op eratio n s d u rin g the p ast y ear are presented in th e accom panying chart. F rom this it appears th a t red iscounts w ith this b ank of m em ber banks in ag ricu ltu ral and livestock areas of the d istrict w ere $66,000,000, on S eptem ber 6 , 1921, as com pared w ith $44,000,000 on Ju n e 15, OJ C or_i ■> o z —z w z o cä 2» 5 L.f z => ?3 O) ZÙ -U X 120 VS a 100 IU in 80 60 40 ZQ A L L C O U N TR Y B A N K S Rediscounts of Member Banks on Selected Dates, 1920-1921 P rincipal Resource and L iability Items o f R eporting M ember Banks in Reserve Cities in Twelfth Federal Reserve D istrict — * N u m b e r o f R e p o rtin g B a n k s ...................................................................... 1. Loans (a) (b) (c) Sept. 7,1921 Aug. 3, 1921 Sept. 10,1920 66 67 66 and discounts (exclusive of r e d isco u n ts): Secured by U nited States G overnm ent O b lig a tio n s.. .$ 24,021,000 146.523.000 Secured by Stocks and Bonds other than U. S. Bonds A ll O th er........................................................................................ 706.042.000 $ 23,787,000 146.458.000 692.225.000 (S ee explanatory foot note below concerning item 1 (c) in 1920.) 2. Investm ents: (a) U nited (b) U nited (c) U nited (d) O ther (e) U nited States States States Bonds, States B o n d s.................................................................. V ictory N o t e s ................................................. Certificates of In d eb ted n ess..................... Stocks and S ecu rities.................................. Treasury N o te s ............................................... 97.593.000 16.058.000 19.238.000 167,258,000 2,887,000 3. T otal Loans and D iscou n ts and In v e stm en ts.............................. 1,179,620,000 4. R eserve Balance w ith Federal R eserve B an k .............................. 76,314,000 5. Cash in V a u lt.............................................................................................. 23,648,000 6. N et Dem and D ep o sits on w hich reserve is com p u ted ............... 574,301,000 97.551.000 15.281.000 19.059.000 168,083,000 4,192,000 1,166,636,000 $ 32,846,000 149,598,000 969,268,000t 95.589.000 11.513.000 26.212.000 -0 -0 - 1,285,026,000 72,130,000 78,211,000 23,418,000 554,128,000 30,489,000 648,908,000 7. T im e D eposits, including Savings D e p o sits.................................. 541,682,000 543,137,000 507,840,000 8. G overnm ent D e p o sits.............................................................................. 6,535,000 15,431,000 1,496,000 9. B ills Payable with Federal R eserve Bank: (a) Secured by U nited States G overnm ent O b lig a tio n s... (b) A ll O th er........................................................................................ 23,003,000 141,000 19,956,000 141,000 26,629,000 85,000 10. B ills R ediscounted with Federal R eserve Bank: (a) Secured by U nited States G overnm ent O b lig a tio n s... (b) A ll O th er........................................................................................ 2,917,000 39,697,000 3,437,000 53,543,000 2,777,000 67,838,000 *Total resources of rep o rtin g banks are approxim ately 44 p e r cent of to tal resources of all banks, and 67 per cent of to tal resources of all m em ber banks in T w elfth F ed eral R eserve D istrict. R eporting banks em brace all mem ber banks in San Francisco, Los A ngeles, O akland, P o rtlan d , Seattle, Tacom a, Spokane, S alt Lake City and Ogden. f P r io r to Jan . 1, 192 1, th is figure included “ all o ther in v estm en ts” as well as “ all o th er lo an s.” A fte r th a t date, “ all o th er in v estm en ts” w ere rep o rted separately as “ o th er bonds, stocks an d secu rities,” in item 2 (d ). C onsequently a figure in 1921 con» parable to item 1 (c) in 1920 w ould be th e to ta l of item 1 (c) an d 2 (d ) in 1921. 16 Agricultural and Business Condition: T h e aforem entioned liquidation of th eir in d ebtedness to th e reserve b ank by city m em ber banks is reflected in th e statem en t of condition of th is ban k as of Federal close of business, S eptem ber R eserve B ank 14th. Bills discounted, at $119,397,000, w ere approxi m ately $15,000,000, or 1 1 per cent less th a n th e to ta l of $134,336,000 held on A u g u st 10th, last. T h e reduction in this sam e item w as $12,600,000 or 8 per cent d u rin g th e preceding four w eeks. A ccom panying the decline in am ount of bills un d er rediscount w as an increase of $18,000,000 (alm ost entirely in gold) in to tal cash reserves. F ederal R eserve notes in circu lation on S eptem ber 14th ($228,674,000) w e n p ractically unchanged in am o u n t as com pared w ith th e to tal o u tstan d in g a m onth previous, Millions .M illions wo JJ0 2« .60 cuuMill 100 MO ISO /' 160 1*0 120 60 60 40 20 \_ s., Ir ' TAl __ Xi D.!SCOL,N7 ED __ ... s. k-: -X MARKI j BOUSHJ , June July 1 Aug 1 | Dec 1920 40 \ _ ! Jan. I 1 __ . I March! April 192» Jul./ 1 Au 9 Federal Reserve Note Circulation, Bills Discounted and Bills Bought in the Open Market, Federal Reserve Bank of San Francisco (in M illions of Dollars) COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BAN K OF SA N FRANCISCO AT CLOSE OF BUSINESS SEPTEM BER 14, 1921 R ESO URCES Gold and Gold C ertificates........................................... Gold S ettlem en t Fund— Federal R eserve B oard. Gold W ith F oreign A g e n c ie s.................................... Sept. 14, 1921 Au*. 10, 1921 Sept. 17,1920 $ 20,804,000 34,392,000 $ 20,689,000 32,843,000 — 0— — 0— $ 55,196,000 $ 53,532,000 $ 12,907,00C 46,285,00C 5,127,00C $ 64,319,00C 167,746,000 8,973,000 Gold R edem ption F u n d ................................................................................. T o ta l Gold R e ser v es............................................................................... $231,915,000 152,099,000 9,063,000 $214,694,000 88,826,00C 10,806,00C $163,951,00C 3,822,000 L egal T ender N o tes, Silver, etc ................................................................. T otal R eserv es......................................................................................... $235,737,000 3,296,000 $217,990,000 625,00C $164,576,00( B ills D iscounted: Secured by U. S. G overnm ent O b lig a tio n s.. . . A ll O th er........................................................................ Bills B ought in Open M arket.................................................................... 34,558,000 84,839,000 3,655,000 $123,052,000 37,047,000 97,289,000 3,057,000 $137,393,000 48,957,000 105,646,00C 63,329,00C $217,932,000 U. S. Bonds and N o te s ................................................................ O ne-Y ear Certificates of Indebtedness (P ittm an A c t). A ll O ther Certificates of In d eb ted n ess................................ 204,000 8,880,000 11,000 $132,147,000 204,000 9,880,000 269,000 $147,746,000 2,632,000 11,188,000 638,000 494,000 — 0— 45,358,000 5,001,000 $419,375,000 586,000 494,000 — 0— 34,459,000 5,808,000 $407,083,000 54,459,000 389,000 $452,072,000 Capital Paid I n ................................................... Surplus .................................................................. Reserve for G overnm ent Franchise T ax. $ $ $ D eposits: 3,703,000 114,799,000 3,902,000 $122,404,000 3,852,000 111,434,000 5,017,000 $120,303,000 11,582,000 114,086,000 4,949,000 $130,617,000 228,674,000 F. R. Bank N otes in Circulation— N et L ia b ility ............................ 4,100,000 37,241,000 D eferred A vailability Ite m s.................................................................. 1,726,000 All Other L ia b ilities................................................................................. T otal L iab ilities.........................................................................................$419,375,000 227,821,000 5,709,000 26,423,000 1,826,000 $407,083,000 252,350,000 11,267,000 35,229,000 4,098,000 $452,072,00C 2,589,000 736,00C Bank P r e m ise s...................................................................... 5% R edem ption Fund A gainst F. R. Bank N o te s. Gold Abroad in C ustody or in T r a n sit..................... U n collected I t e m s ............................................................... A ll O ther R eso u rc e s......................................................... T o ta l R e so u rc e s.......................................................... — 0— $231,752,000 231,000 665,000 — 0— L IA B I L I T IE S G overn m en t.................................... M em ber Bank R eserve Accoui A ll O th er........................................ T otal D e p o s its ............................................. M em o: C ontingent Liability on B ills Purchased for F oreign Correspondents ............................................................................................ 7,359,000 15,207,000 2,664,000 1,569,000 7,404,000 15,207,000 2,390,000 $,849,000 11,662,000 — 0—
@FedFRASER