Full text of Economic Review (Federal Reserve Bank of San Francisco) : September 16, 1923

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MONTHLY REVIEW
OF

BUSINESS CONDITIONS
JOHN PERRIN, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco

Vol. VII

San Francisco, California, September 17, 1923

Sum m ary o f National Conditions
T h e volum e of m erchandise d istrib u ted d u r­
ing A u g ust, as indicated by railw ay traffic and
w holesale and retail trade, w as large. P ro d u c­
tion of certain basic com m odities and indus­
trial em ploym ent show ed fu rth e r slig h t de­
creases d u rin g the m onth.
Production. T h e F ederal R eserve B oard’s
index of production in basic industries de­
clined 2 per cent d u rin g A ugust, and w as at
th e low est point for this year. T h e A u g u st
o u tp u t, how ever, w as 27 per cent larg er th an
a y ear ago, and production in every m onth of
th is year has been a t a higher level th a n in any
m onth of th e previous five years. T h e low er
production index in A u g u st reflected reduced
o u tp u t, after a correction for the usual seasonal
trend, of pig iron,w oolen goods, flour, and cem ent.
C otton consum ption, su g ar m eltings, lum ber
cut, and bitum inous coal production increased.
T h e n um ber and value of new building p ro j­
ects, as m easured by perm its g ran ted in 168
leading cities, increased d u rin g A ugust, b u t ac­
tu al co n tract aw ards w ere sm aller th an in July.

E m ploym ent at in d u strial establishm ents
th ro u g h o u t th e U n ited S tates w as slightly
sm aller in A ugust, w hile average w eekly earn ­
ings advanced about 1 per cent. Increases in
w ages am ounting to 10 per cent w ere g ran ted
to an th racite coal m iners and re ad ju stm e n t of
w ages and hours in the steel in d u stry con­
tinued, b u t w age advances d u rin g A u g u st w ere
few er th an in any m onth since last w inter.
T he principal changes in crop estim ates
show n by th e S eptem ber 1st forecast of th e
D ep artm en t of A g ricu ltu re w ere a large reduc­
tion in th e expected cotton crop, slight de­
creases in the probable yields of w heat, barley,
and oats, and increases in the estim ated yields
of corn, tobacco, and potatoes.
Trade. R ailroad freig h t shipm ents w ere
larg er in A u g u st th a n in any previous m onth
on record. T his w as due to seasonal increases
in shipm ents of coal, m erchandise and m iscel­
laneous freight, and agricultural products.
W holesale trade, according to the index of th e
F ederal R eserve B oard, increased 12 per cent
in A ugust, w hich is m ore th an the usual
MILLIONS

Index of Production in Basic
Industries
Combination of 22 individual series
corrected for seasonal variation
(1919 average = 100 per cent)

No. 9

OF D O L L A R S

B I L L IO N S OF DO LLARS

Prices

Bank Credit

Bank Credit

Index numbers of wholesale prices.
United States Bureau of Labor Statistics
(1913 avera*e=100 per cent)

All Federal Reserve Banks

800 member banks in 1cadine cities

Those desiring this review sent them regularly will receive it without charge upon application.




130

M O NTHLY REVIEW OF BUSINESS CONDITIONS

seasonal increase, and sales w ere th e larg est of Sum mary o f District C onditions
an y m o nth in th ree years. Sales of clothing,
Seasonal increases in business activity n o r­
d ry goods, and shoes show ed su b stan tial gains
as com pared w ith Ju ly and w ere larg e r th an a m ally m anifested d u rin g th e first days of
y ear ago. R etail trad e also increased in A ugust, au tu m n w ere a ch aracteristic feature of th e
and sales in all re p o rtin g lines w ere larg er th an business and industrial situ atio n in th is district
in A u g u st, 1922. D e p artm en t store sales in all d u rin g A ugust. In som e cases, en terp risers ap ­
sections of th e co u n try averaged 12 per cent pear to have aw aited th e m ore definite re tu rn s
of }nelds of th e d istric t’s crops and th e prices
above last y e a r’s level.
to be received therefor, w hich becam e available
P rices. T h e general level of w holesale prices, about the first of S eptem ber, before m aking
according to th e index of th e B ureau of L abor the usual au tu m n com m itm ents, b u t in m ost
statistics, rem ained relatively co n stan t in such cases business w as m erely retard ed , n ot
A u g u st, th e change for th e m onth being a re­ curtailed.
duction of less th a n 1 per cent, com pared w ith
O n the whole, h arv est rep o rts from th e p rin ­
declines of ab o u t 2 per cent in each of the th ree cipal farm ing areas have been favorable. R ec­
p receding m onths. P rices of building m ate­ ord yields of w h e at are being th resh e d in
rials, house furnishings, and fuel w ere m ate­ W ash in g to n and Idaho, and th e to tal d istric t
rially reduced, w hile prices of farm products crop is now placed a t 137,359,000 bushels, a
and foods increased. P rices of certain raw yield alm ost 40 per cent g re a te r th a n th a t h a r­
m aterials, p artic u la rly cotton and silk, ad­ vested in 1922. E xcellent yields of o th er cereals,
vanced su b stan tially d u rin g S eptem ber, w hile and of such field crops as potatoes, su g ar
prices of petroleum and copper declined.
beets, cotton, and beans are being harvested.
B ank credit. A fter a decline d u rin g Ju ly and T h e deciduous fru it crops, excepting apples
th e first p a rt of A ugust, th e volum e of bank and grapes, have practically all been picked,
credit in use show ed a seasonal increase during and an unusually large m ovem ent of fresh fru it
th e last w eek of A u g u st and the first tw o w eeks to eastern m arkets has been reported. T o tal
of Septem ber. T o tal loans and dem and deposits shipm ents of deciduous fru its from C alifornia
of m em ber banks in th e principal cities in­ up to S eptem ber 9th of the p ast tw o seasons
creased d u rin g recen t weeks, rev ersin g the have been as fo llo w s:
tren d of th e preceding tw o m onths. Loans
1923
1922
Increase 1923
(cars)
(cars)
over 1922
chiefly for com m ercial and ag ricu ltu ral p u r­
25,596
17,703
44%
poses increased by $122,000,000 and reached
th e high point for th e year. In v e stm en t hold­
F ru it shipping equipm ent of th e railro ad s
ings of these banks, on th e contrary, continued serving this te rrito ry has been taxed to capa­
to decline and on S eptem ber 12th w ere low er city, and although no serious sh o rtag e of cars
th a n a t an y tim e since th e m iddle of O ctober has been rep o rted th u s far, the possibility of
of last year.
such a sh o rtag e will not disappear u ntil the
B etw een A u g u st 22nd and S eptem ber 19th peak of the grape shipping season has been
th e am o u n t of accom m odation extended to passed. C ontinued slow im provem ent has been
m em ber banks by F ederal R eserve banks in in­ noted in the livestock industry, and w e ath er
d u strial d istricts declined, w hile in agricul­ and range conditions have been generally
tu ra l d istricts th e seasonal dem and for credit favorable.
and currency resu lted in a considerable g row th
P rices of farm products, w hich have been de­
of R eserve bank credit in use.
clining d u rin g recent m onths, advanced d u rin g
T h e dem and for currency arisin g ou t of crop A ugust. T he m ajo rity of th e principal agricu l­
m oving and fall trad e w as reflected in an in­ tu ral products of this d istrict, including barley,
crease of $82,000,000 in m oney in circulation rice, cotton, sugar, cattle, sheep, lam bs, and
betw een A u g u st 1st and S eptem ber 1st. Of hogs are now selling at prices w ell above those
this am o u n t ab o u t $44,000,000 represented an of a y ear ago. W h e a t prices a t central m ark ets
increase in F ederal R eserve note circulation.
have fluctuated ab o u t $1.00 per bushel, b u t
M oney rates w ere firm er d u rin g the first tw o have rem ained above low levels reached d u rin g
w eeks of S eptem ber, b u t eased som ew hat after July.
the 15th, p a rtly because governm ent disburse­
P ro d u ctio n in other basic in d u stries of th e
m ents w ere tem p o rarily in excess of ta x col­ d istrict increased durin g A ugust. L u m b er m ills
lections.
reported capacity operations, p a rtly in response
T h e T re a su ry issued on Septem ber 15th to cu rren t dem ands and p a rtly as a re su lt of
$200,000,000 of six-m onths certificates b earing efforts to build up depleted stocks. T he supply
4% per cent interest, com pared w ith 4 per cent of logs available for mill use is below norm al
borne by six-m onths certificates issued in June. for this season of the year, w hen accum ulation




Agricultural Credit Facilities




Under the

Federal Reserve Act
Issued by authority of the
Federal Reserve Board
(R ep rin ted fxom Federal Reserve B u l^ tin , August, 1923)

W ashington, D. C.
August 22, 1923

Washington
Government Printing Office
1923

AGRICULTURAL CREDIT FACILITIES UNDER THE FEDERAL
RESERVE ACT.

I n view of the interest attach in g to the added facilities fo r extend­
ing cred it to farm ers, established by the ag ricu ltu ral credits act of
1923 w ith th e am endm ents to the F ed eral reserve act w hich it con­
tained, there has been p re p are d the follow ing sum m ary in non­
technical language of th e wrays in which credit m ay be extended fo r
a g ric u ltu ral purposes under the provisions of the am ended F ed eral
reserve act and the regulations issued by the F ederal Reserve B oard.
How Credits Are Extended.
T h e operations of F ed eral reserve banks in extending credit to
ag ric u ltu ral interests are regulated by the F ed eral reserve act w ith
its various am endm ents. N either farm ers nor other individuals can
obtain credit directly from the F ed eral reserve banks, but m ust apply
fo r loans to th eir own local banks, w hich, if they are members of the
F ed eral reserve system, m ay in tu rn rediscount w ith the F ed eral
reserve bank the notes, d ra fts, or bills of exchange acquired from
customers. T he F ed eral reserve act places certain lim itations on the
ch aracter of p ap er that* the reserve banks m ay discount and places
upon the F ed eral Reserve B o ard the duty of issuing regulations p u t­
tin g into effect the provisions of the law. F ollow ing is a b rief sum ­
m ary of the provisions of the act and of the b o ard ’s regulations w ith
special reference to the credit facilities offered to ag ric u ltu ral
interests.
General Character of Eligible Paper.
T he ch aracter of the p ap e r w hich F ed eral reserve banks m ay dis­
count is generally defined in section 13 of the F ed eral reserve act.
T h is provision of law authorizes F ed eral reserve banks to discount
notes, d ra fts, and bills of exchange issued or draw n for ag ricu ltu ral,
in d u strial, or com m ercial purposes, or the proceeds of w hich have
been used or are to be used fo r such purposes. T he law does not
p erm it the reserve abanks to discount p ap er the proceeds of which
are (1) to be loaned to some other borrow er, or (2) to be used for
perm an ent investm ent, or (3) fo r speculation. Exceptions to (1) in
fav o r of certain kinds of ag ric u ltu ral loans are discussed later.
55695°-—23




1




2

AGRICULTURAL. CREDITS UNDER FEDERAL. RESERVE ACT.

A gricultural Paper in General.
A g ric u ltu ra l p ap e r is given by the act an im p o rtan t advantage
over com m ercial paper, since the la tte r can be discounted only fo r a
period not exceeding 90 days, while p ap e r w hich is issued or d raw n
fo r an ag ric u ltu ral purpose, or is based on live stock, m ay now be
discounted by F ed eral reserve banks even th ough it has nine m onths
to ru n from the date of discount. T he F ed eral Reserve B oard has
m ade ap p ro p riate provision fo r th is in its new regulations in w hich
the definition of ag ric u ltu ral p ap er has been clarified and broadened
so as to incorporate the latest and m ost liberal principles adopted
by the board in determ ining .w hat constitutes a g ric u ltu ral paper.
N ine m onths’ p ap er w ill thus be eligible fo r discount if the proceeds
have been or are to be used by a fa rm er in any one or m ore of the
steps of p lan tin g , cultivating, harvesting, or m ark e tin g a crop, or of
breeding, fatten in g , or m ark etin g live stock, and the F ed eral R e­
serve B oard has held th a t the m ark etin g of crops or live stock
includes carry in g them fo r a reasonable tim e in ord er to m ark e t
them in an orderly m anner, instead of dum ping large q uantities on
the m arket at one tim e in order to get m oney w ith w hich to m eet
cu rren t expenses. U nder th is provision of th e law , m em ber banks
w hich have loaned money fo r nine m onths to w heat grow ers and
other farm ers fo r the purpose of raising, carry in g , and m ark etin g
th eir crops, w ill be able to rediscount the fa rm ers’ notes w ith the
F ed eral reserve banks.
Paper of Cooperative M arketing Associations.
I n recent1years cooperative m ark etin g associations have been com­
ing m ore and m ore into prom inence as agencies th a t enable th e
farm er to m arket his crops to b etter advantage. T he service w hich
such associations can ren d er to ag ricu ltu re is clearly recognized and
the F ed eral reserve act m akes special provisions fo r the extension of
credit to such associations. U n d er the act, as am ended by the a g ri­
c u ltu ral credits act of M arch 4, 1923, cooperative m ark etin g associa­
tions can issue p ap er which is eligible for discount w ith m atu rities
u p to 9 m onths, if the proceeds of the p ap e r are advanced to m em ­
bers of the association for an a g ric u ltu ra l purpose, or are used to p ay
m em bers fo r a g ric u ltu ral products delivered to the association, or
finance the association in packing, p re p a rin g fo r m arket, or m a rk e t­
in g products grow n by it's members. P a p e r of cooperative m ark e tin g
associations by w hich m oney is borrow ed to be in tu rn loaned to
in d iv id u al m em bers of the association would o rd in arily be ineligible
fo r discount, but it was felt th a t the ability to issue such p ap e r and
have it available fo r discount w ould be of such assistance in th e
cooperative m ark etin g m ovem ent th a t a special exception to the g en­
eral rule is m ade in the law. T he law also specifically defines as

AGRICULTURAL CREDITS UKDER FEDERAL RESERVE ACT.

3

ag ric u ltu ra l certain classes of p a p e r of cooperative m ark etin g asso­
ciations w hich otherw ise w ould be construed as com m ercial paper.
T h is provision m akes the p ap e r in question eligible fo r discount w ith
F ed eral reserve banks fo r a m axim um period of 9 m onths, instead
of 90 days.
Sight and Demand Drafts.
A n o th er featu re of the law w hich should prove of g reat assistance
to the a g ric u ltu ra l interests is the new provision m aking sight and
dem and d ra fts eligible fo r discount un d er certain circum stances.
U n d e r the o riginal act such p ap e r w ould be ineligible fo r discount
because it has no definite m atu rity . I t appears, however, th a t it is the
custom of m any m em ber banks d u rin g crop-m oving periods to dis­
count large volumes of sig h t d ra fts secured by bills of lad in g covering
the shipm ent of w heat, cotton, or other ag ric u ltu ral products. These
d ra fts, although hav in g no definite m a tu rity , are usually p aid w ith
g re at prom ptness, and actually constitute a liquid and desirable form
of paper. A t the suggestion of the F ed eral Reserve B oard an am end­
m ent w^as m ade to the F ed eral reserve act by the a g ric u ltu ra l credits
act of M arch 4, 1923, p erm ittin g F ed eral reserve banks to discount'
sight or dem and d ra fts draw n to finance the dom estic shipm ent of
nonperishable, readily m arketable staples and secured by bills of
lad in g or sim ilar sh ip p in g docum ents conveying o r securing title to
such staples. In order to assure the liquidity of the F ed eral reserve
b an k s’ assets it is provided th a t such p ap e r m ust be presented fo r
paym ent w ith reasonable prom ptness and th a t in no event m ay a
F ed eral reserve bank hold such p ap e r longer th an 90 days.
Factors’ Paper.
T he law as recently am ended also provides th a t notes, d ra fts, and
bills of exchange of factors issued fo r the purpose of m aking a d ­
vances to producers of staple ag ric u ltu ral products in th e ir raw state
shall be eligible for discount. U n d er norm al circum stances, p ap e r
the proceeds of which are loaned to some other borrow er w ould be
ineligible fo r discount, b u t th is kind of facto rs’ p ap e r m ay now be
discounted w ith m atu rities up to 90 days. T his facility should prove
of m uch assistance in financing ag ric u ltu ral production, because in
ad d ition to borrow ing from th eir banks, farm ers can also borrow
from th e ir factors who w ill be the m ore ready to lend on account of
the privilege given them of m aking notes and d ra fts w hich m ay be
discounted by F ed eral reserve banks.
Bankers’ Acceptances.
I n addition to the o rd in ary classes of credit instrum ents—th a t is,
notes, d ra fts, and bills of exchange— a type of p ap e r known as
b an k ers’ acceptances has recently been coming into m ore common







4

AGRICULTURAL CREDITS UNDER FEDERAL RESERVE ACT.

use as a m eans of financing agricultui'al operations, both by in d i­
vid u al -farmers and more p a rtic u la rly by cooperative m ark e tin g as­
sociations. B an k ers’ acceptances are d ra fts or bills of exchange
d raw n on and accepted by a bank or tru s t com pany or other b ankin g
in stitu tio n , and the law authorizes F e d e ra l reserve banks to discount
b ankers’ acceptances under certain conditions. F o r th is purpose
such acceptances m ust be indorsed by a m em ber b ank and m ust be
draw n to finance the im p o rtatio n or ex p o rtatio n of goods, th e
dom estic shipm ent of goods, or th e storage of readily m arketab le
staples. Acceptances w hich are draw n to finance th e dom estic ship­
m ent of goods or the storage of readily m arketable staples m ust also
be secured by ship p in g docum ents or warehouse receipts conveying
or securing title to the goods or staples in question. W ith re g a rd
to bankers’ acceptances, th e law also discrim inates in fa v o r of those
draw n to finance ag ric u ltu ral operations by m aking them eligible
fo r discount w ith m atu rities u p to six m onths, provided they are
secured by warehouse receipts conveying title to read ily m arketable
staples, w hile bankers’ acceptances draw n fo r other purposes may.
be discounted by F ed eral reserve banks w ith m atu rities up to
90 days only. T hus in d iv id u a l farm ers and cooperative m ark e tin g
associations can obtain fu n d s to finance th e ir operations by d ra w in g
on th e ir banks and discounting th e accepted d ra fts w ith other banks.
T h is ad d itio n al m eans of g ettin g credit is a very valuable one, be­
cause bankers’ acceptances are norm ally th e best ty p e of credit in ­
strum ent and c a n y the lowest ra te of interest.

Admission of Small Banks to Membership.
W ith a view to increasing th e availability of cred it th ro u g h th e
F ed eral reserve banks, the a g ric u ltu ra l credits act of M arch 4, 1923,
contained a provision designed to enable m any sm aller banks,
w hich form erly h ad insufficient ca p ital to become m em ber banks, to
join the F ed eral reserve system. U n d er this provision banks h av in g
60 p er cent of the cap ital norm ally required as a qualification fo r
m em bership m ay join the system u n d er certain conditions re la tin g
to the increase of th e ir cap ital w ith in a reasonable tim e, and it is
hoped th a t m any o f the sm all country banks w ill take advantage
of this provision and thereby p u t them selves in a position to offer
th e ir custom ers the benefits of m em bership and the increased cred it
facilities afforded by the rediscount privilege.

Open Market Purchases of Paper.
I n addition to the discount of a g ric u ltu ral p ap e r fo r m em ber
banks, F ed eral reserve banks are also enabled to extend credit fa cili­
ties to the a g ric u ltu ra l interests W gsshns of p u rch asin g such p a p e r
in the open m arket. U nder section 14 of th e F e d e ra l reserve act

AGRICULTURAL CREDITS UNDER FEDERAL RESERVE ACT.

O

th e pow er is given to F ed eral reserve banks to purchase in the open
m ark et bankers7 acceptances and bills of exchange of the kinds and
m atu rities m ade eligible fo r discount. B y v irtu e of this provision
F ed eral reserve banks m ay purchase, as well as discount, bills of
exchange draw n fo r a g ric u ltu ra l purposes and having m aturities up
to nine m onths, and secured bankers’ acceptances draw n to finance
a g ric u ltu ral operations w ith m atu rities up to six m onths.

Five-Year Loans on Farm Land.
The F ed eral reserve act also m akes provision fo r long-tim e bo r­
row ing on real-estate security. Section 24 of th e act authorizes
n atio n al banks to m ake loans fo r periods up to five years when
secured by im proved and unencum bered fa rm land, and for periods
up to one year when secured by im proved and unencum bered real
estate. N atu rally , land thus used as security for loans m ust be
located w ithin reasonable proxim ity to the lending bank—the exact
lim its are prescribed in the law — and it is fu rth e r provided, as a
m atter of sound banking, th a t these loans m ay not exceed 50 per cent
of the actual value of the p ro p erty offered as security. T he law
also places a reasonable lim itatio n on the aggregate am ount of
fa rm land and real estate loans which n ational banks m ay have
o u tstan d ing, for otherw ise they m ight tie up too m uch of th e ir
fu n d s in long-tim e nonliquid loans and not be able to m eet the cu r­
re n t requirem ents of th e ir other borrow ers. Thus, farm ers who
need long-tim e loans can borrow fo r five years from n ational banks
in th eir locality on the security of th e ir farm lands, and the F ed eral
R eserve B o ard has provided in its regulations th a t at m atu rity such
loans m ay be renewed fo r other five-year periods, although a n atio n al
bank m ust not obligate itself in advance to m ake a renewal.

Other Credit Facilities.
The above gives a b rief description of the m ore im p o rtan t p ro v i­
sions of the F ed eral reserve act which provide fo r the extension of
cred it facilities to the a g ric u ltu ral interests. T here are also certain
other provisions dealing w ith the relations between the F ed eral
reserve banks and the new in term ediate credit in stitu tio n s w hich
were set up by the ag ric u ltu ral credits act of 1923, and by v irtu e of
which F ed eral reserve banks, th ro u g h discounting and open-m arket
purchases, are enabled to extend certain additional credits to a g ri­
culture.

Agricultural Loans by National Banks.
A tten tio n should also be called to the provisions of section 5200 of
th e Revised S tatutes. T his is not p a r t of the F ed eral reserve act
and applies only to national banks, but it has an im p o rtan t bearing on
the am ount of credit w hich farm ers and cooperative m arketing asso­







o

AUIvJLUL.L/JLUJriiVLt

JLC» Ui> LfJhlx JJ'JiiJLUljJtt AJj

V

AUI.

ciations m ay obtain from n atio n al banks. Section 5200 of the R e­
vised S tatu tes contains the lim itatio n on the am ount of money w hich
a n atio n al bank m ay lend to any one person. T h is is, in general, 10
per cent of the lending b an k ’s cap ital and surplus, w ith certain classes
of p ap e r excluded as not being considered loans of money. A n ex­
ception is m ade, however, w ith respect to loans on read ily m arketable
nonperishable staples, including live stock. Such loans m ay be m ade
to any one person up to 25 p er cent of the lending b a n k ’s ca p ita l
and surplus, provided th e loans over and above 10 p er cent are re p ­
resented by notes, secured by ship p in g docum ents o r warehouse re­
ceipts covering staples or live stock. N ational banks m ay also d is­
count in unlim ited amount's certain kinds of p a p e r classified broadly
as “ bills of exchange draw n in good fa ith ag ain st actually existing
values.” Section 5200 of the Revised S tatutes includes in th is b road
classification d ra fts secured by shipping docum ents conveying or
securing title to goods shipped, dem and obligations w hen secured by
docum ents covering com m odities in process of shipm ent, and b ank ers’
acceptances of the kinds described in section 13 of the F ed eral reserve
act, so th a t national banks m ay extend credit on these classes of p ap er
w ith o u t lim itation. These provisions, which were inserted on the
recom m endation of the F ed eral Reserve B oard, give broad pow ers to
national banks to extend accom m odation on the security of fa rm
products and live stock and have proven of g re at value to farm ers
and cattlem en in th e ir financing problem s.
The Federal Reserve Board’s PartA discussion of the provisions of the law in th is connection w ould
not be com plete w ithout reference to the functions of the F ed eral
Reserve B oard, in construing and adm inistering the law. T here is
not space here fo r a critical study of the b o ard ’s ru lin g s and reg u la­
tions w ith respect to a g ric u ltu ral credits, bu t it can be stated w ith
em phasis th a t the board has so construed and adm inistered the law
as to im prove in the highest possible degree the cred it stan d in g and
economic position of the ag ric u ltu ral interests, placing at th eir dis­
posal, th ro u g h its discounts fo r m em ber banks and its open-m arket
operations, the vast resources of the F ed eral reserve system to the
fu llest extent p erm itted by the law and by the principles of sound
banking.

c

F in a n c ia l C o n d it io n s

in t h e

T w e l f t h F e d e r a l R e s e r v e D ist r ic t
by
JOHN PERRIN, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco

San Francisco, California, September 17, 1923
S U R V E Y of financial conditions in th e
T w elfth F ederal R eserve D istrict based
upon reports of condition of all banks
(S tate and N ational) as of Ju n e 30, 1923, is
p resented herew ith, in com parison w ith a sim i­
lar survey m ade a year ago, on Ju n e 30, 1922.
M aterial im provem ent in som e sections of O re­
gon, Idaho, and U tah , b u t little change in
oth er p arts of the d istrict occurred d uring the
year. C redit conditions in C alifornia, w estern
O regon, w estern W ash in g to n , and N evada are
generally good, and in only a few sections of
eastern W ashington, n o rth ern O regon, Idaho,
and U tah are they still poor.* •

A

As in previous surveys, th e ratio of to tal
loans and discounts to to tal deposits of all
banks, S tate and N ational, in a given area w as
used in determ in in g the financial condition of
th a t area. W h ere th e to tal of loans and dis­
counts w as less th a n 80 per cent of to tal de­
posits, financial conditions w ere characterized
as “good” (colored blue on accom panying
m aps) ; w here the ratio w as betw een 80 per
cent and 100 per cent, financial conditions
w ere ch aracterized as “fa ir” (colored yellow
on m a p s ) ; and w here the ra tio w as over 100
per cent, financial conditions w ere ch a rac te r­
ized as “p o o r” (colored green on m aps).
T his study relates p rim arily to conditions in
the ag ricultural regions of th e district, as have
previous studies. T h e follow ing sum m ary,
w hich excludes figures for the cities of B erke­
ley, Los Angeles, O akland, P o rtlan d , Salt Lake
City, San Francisco, S eattle, and Spokane,
* F ig u res fo r A rizona as of Ju n e 30, 1923, a re not y et available.
A year ago cre d it conditions in A rizo n a w ere good.




show s the continued im provem ent in condition
since the end of 1921:
P R O P O R T IO N O F T O T A L D E P O S IT S O F BA N K S IN
C O L O R E D A R E A S T O T O T A L D E P O S IT S O F
A L L CC
RY BA N K S
D ec. 31,
1V21

June 30,
1922

Dec. 29,
1922

June 30,
1923*

!Good” areas. .. 80.3%
‘Fair” area s. .. 12.7%
P o o r” a rea s. .. 7.0%

66.1%
27.2%
6.7%

89.0%
7.4%
3.6%

70.0%
25.8%
4.2%

* F igures fo r A rizona no t included. D eposits of all banks in A ri­
zona on D ecem ber 29, 1922, w ere 3.7 p e r cent of deposits of
all co u n try banks in the district.

T o tal deposits of all banks included in the
above sum m ary—the so-called country banks—
were, on Ju n e 30, 1923, approxim ately 33 per
cent of to tal bank deposits in the T w elfth F ed ­
eral R eserve D istrict, and the ratio of th eir
to tal loans and discounts to th eir to tal de­
posits was, on Ju n e 30, 1923, 73.0 per cent,
com pared w ith 75.6 per cent on Ju n e 30, 1922.
T h a t a sm aller percentage of co u n try banks
fell w ithin the “good” class and a larg er p er­
centage w ithin the “fa ir” class on Ju n e 30,
1923, th an on D ecem ber 29, 1922, w as due p ri­
m arily to the usual increase of loans during the
sum m er m onths.
D eposits in the cities above m entioned
equalled 67 per cent of to tal bank deposits in
the district, and th e ratio of th eir com bined
loans to deposits w as 69.6 per cent com pared
w ith 65.2 per cent on Ju n e 30, 1922.
T he above figures indicate th a t financial con­
ditions generally are “good” in the principal
cities of the d istrict and in those agricultu ral
areas in w hich approxim ately 70 per cent of th e
banking resources of the agricultural sections
are to be found.




FINANCIAL CONDITIONS
in the

TWELFTH
FEDERAL RESERVE
DISTRICT
As o f June 30,

1922

LEG EN D
I

I GOOD

□

f a ir

I

I POOR




R e d isc o u n t O p e r a t io n s in t h e
T w e l f t h F e d e r a l R e se r v e D ist r ic t

COMPARATIVE REDISCOUNT OPERATIONS, 1 9 2 0 -1 9 2 3
B orrow ings o f City and Country M ember B anks
(A s o f the end o f each m onth)

NOTE:

City banks include all member banks in Berkeley, Los Angeles, Oakland, Portland, Salt Lake City,
San Francisco, Seattle, and Spokane. Country banks include all other member banks.

BORROWINGS FROM THE FEDERAL RESERVE BANK
AND WHOLESALE PRICES
C ity Bank
Borrowings

Country Bank
Borrowings

$ 62,088,000

$21,978,000

$ 84,066,000

233

Date

January 27, 1920..
Subsequent P eak .

United States
Bureau of Labor
Wholesale Price
Index
(1913=100)

A ll
M em ber Bank
Borrowings

O ct. 5.1920

A ug. 23, 1921

O ct. 5,1920

M ay, 1920

$116,286,000

$68,985,000

$174,699,000

247

Jan. 2. 1923

Jan. 16.1923

Jan. 1922

L ater L ow P o in t.

$

8,264,000

$19,729,000

$ 35,576,000

138

A ugust 28, 1 9 2 3 ...

$ 56,138,000

$32,698,000

$ 88,836,000

150

Aug. 8.1922




131

FEDERAL RESERVE AGENT AT SAN FRANCISCO

for th e w in ter m onths usually begins. T he de­
crease in mineral production first noted in Ju ly
continued during- A ugust, although copper
m ines of the d istrict rep o rt little or no cu rta il­
m en t of operations. T he m ark et for lead and
zinc has stren g th en ed as production has de­
clined, w hile the m ark et for copper, ap p a r­
en tly confronted w ith an excess of production
over consum ption, has w eakened. T h e flow of
petroleum in the oil fields of C alifornia d u rin g
A u g u st exceeded the previous record m onth of
July, and continued the excess of production
over consum ption w hich has carried stored
stocks to th eir p resen t (S eptem ber 1st) record
levels, 83,120,835 barrels. Gasolene prices w ere
fu rth e r reduced d u rin g the m onth, and a t 14
cents per gallon, retail, in San F rancisco w ere
low er th an at any tim e since July, 1915, w hen
the price w as 11 cents per gallon. C essation of
the steady decline in the value of building p er­
m its issued in 20 principal cities of th e d istrict,
w hich has been in progress since last M arch,
occurred in A ugust, w hen the value of build­
ing au thorized w as g re ater th a n in any previ­
ous m onth of w hich th ere is record. L abor in
the d istrict continued fully em ployed, and no
serious employment controversies w ere re­
ported.
T h e volume of business tran sa cted in the dis­
trict, as reflected by debits to individual ac­
counts in banks in 21 clearing house centers,
was sm aller during A u g u st th an in any previ­
ous m onth of this year, if seasonal variations
be elim inated, although the actual am ount of
such debits w as g re ater th a n in F ebruary,
1923. Trade a t retail, as reported by 35 de­
p a rtm e n t stores, w as seasonally active, and the
value of sales d u rin g A ugust, 1923, exceeded
those of A ugust, 1922, by 13.5 per cent. Each
of th e 11 lines of wholesale trade for w hich
this bank collects sales figures reported a
larg er value of business done durin g A u g u st
of this year th an d u rin g A u g u st a y ear ago.
T h e cu stom ary seasonal increase in sales at
w holesale w as also noted d u rin g the m onth.
T h e num ber of business failures increased 9
p er cent d u rin g A u g u st as com pared w ith July,
b u t liabilities involved w ere 7 per cent less
th an in the previous m onth, and well below
the figures in every o th er m onth of the past
tw o years, excepting June, 1923.
T h e dem and for additional bank credit n o r­
m ally felt d u rin g th e crop m oving season has
not been so in sisten t th u s far this year as in
previous years. L oans of 66 rep o rtin g m em ber
banks in the principal cities of the d istrict de­
creased $3,000,000 d u rin g th e four weeks end­
ing Septem ber 5th, stan d in g a t $992,000,000 on
th a t date. T he p resen t volum e of loans a t these
banks, how ever, is 13.5 per cent g re ater th an
one y ear ago. D eposits of rep o rtin g banks on




Septem ber 5th w ere $1,000,000 g re ater th an on
A u g u st 8th, b u t $10,000,000 less th an on Ju ly
11th, continuing th e dow nw ard tren d w hich
has been ap p aren t since M ay, 1923. B orro w ­
ings of all m em ber banks from the R eserve
bank reached a cu rren t peak of $91,000,000 on
S eptem ber 5th, and although th e y declined to
$89,000,000 on S eptem ber 12th th ey w ere still
169.7 per cent g re ater th an on J a n u a ry 10, 1923.
Increases in th e volum e of paper discounted
for San F rancisco banks have been largely re­
sponsible for this m ovem ent. T h e am oun t of
F ederal R eserve N otes in circulation increased
from $211,000,000 on A u g u st 15th to $219,000,000 on Septem ber 12th. Interest rates charged
custom ers by banks in the d istrict have re­
m ained steady at Sy2 to 6 per cent in California
financial centers, and 7 per cent in other sec­
tions.
Crop Conditions
H a rv estin g of the m atu rin g crops of the dis­
tric t has continued under generally favorable
conditions in all sections. T h re sh in g of wheat,
already practically finished in C alifornia, is
rapidly approaching com pletion in Pacific
N o rth w estern states, w ith prospects of record
yields in Idaho and W ashington. T he chief
grain grow ing states of the d istrict also rep o rt
th a t h arv estin g and th resh in g of barley and
oats have confirm ed the early estim ates of
large yields of these crops. Revised Septem ber
1st estim ates of the D ep artm en t of A gricu l­
ture, based upon m ore com plete th resh in g re­
tu rn s th an w ere previously available, show an
im provem ent in the yield of w heat in th e P a ­
cific N orthw est, b u t indicate a sm aller to tal
yield in the U nited S tates th an w as reported on
A u g u st 1, 1923. L a te st revised governm ent
estim ates of the 1923 yield and the actual 1922
yield of w heat and barley in five states of th e
T w elfth D istrict and in the U nited S tates are
given in the follow ing ta b le :
Estim ated Yield
Sept. 1, 1923*
All W heat
Barley

C a lifo r n ia ...........
Idaho ..................
O r e g o n ...............
U tah ....................
W ash in gton __
T otals .............
U nited S t a t e s ...

(bushels)

(bushels)

16,456
29,045
25,890
6,012
58,448
135,851
789,000

36,292
3,540
3,080
716
3,294
46,922
199,337

Actual Y ield—1922*
All W heat
Barley
(bushels)

(bushels)

15,308
24,275
19,744
5,682
32,444
97,453
862,000

36,864
2,890
2,160
630
1,813
44,357
186,118

*000 om itted.

Small increases in export shipm ents of w heat
d uring recent w eeks have caused a slight im ­
provem ent in w heat m arkets of the district,
after m ore th an a year of sluggish trad in g .
W h eat shipped to foreign countries from P o rt­
land and P u g e t Sound ports totaled 1,549,218
bushels durin g A ugust, 1923, com pared w ith a
m ovem ent of 1,437,193 bushels durin g A ugust,

132

M O NTHLY REVIEW OF BUSINESS CONDITIONS

1922, and 3,486,072 bushels in A ugust, 1921.
C om m ercial factors state th a t dom estic sales of
w h eat have been com paratively sm all in vol­
um e d u rin g the p a st m onth. T h ere is reported
a tendency am ong farm ers of th e district, p a r­
ticu larly in th e Pacific N o rth w est, to defer
selling th eir w h e at in th e hope of a later rise
in price. M illing w h e at w as quoted a t $1.90 to
$1.95 p er cental ($1.14 to $1.17 per bushel) in
th e San F rancisco m ark e t on S eptem ber 4th,
com pared w ith $1.75 to $1.85 per cental ($1.05
to $1.11 per bushel) both on A u g u st 14, 1923,
and S eptem ber 14, 1922.
G enerally favorable rep o rts of th e h arv estin g
of early field crops and th e final g ro w th of late
m atu rin g crops have been received d u rin g th e
p a st m onth. In C alifornia h arv estin g of su g ar
b ee ts h as com m enced in som e sections, and ex­
cellent yields are generally expected. Sim ilar
conditions prevail in U tah and Idaho. P revious
estim ates of the to ta l d istrict yield (1,882,000
to n s) have not been changed m aterially, and
an o u tp u t in excess of th e 1,539,000 tons pro ­
duced in 1922 is clearly in prospect. A s dig­
g in g proceeds, the yield of po tato es in som e
sections of th e d istric t is p roving sm aller th an
w as forecasted in estim ates published a m onth
ago. T h e S eptem ber 1st crop re p o rt of th e D e­
p a rtm e n t of A g ric u ltu re places th e yield in
C alifornia, Idaho, O regon, and W a sh in g to n at
33.664.000 bushels, com pared w ith the A u g u st
1st fo recast of 33,803,750 bushels, and a 1922
crop of 40,740,000 bushels. T h e to tal 1923 crop
of p o tato es in th e U n ited S tates is now esti­
m ated a t 389,674,000 bushels, com pared w ith
451,000,000 bushels in 1922. T h e condition of
co tto n in A rizona and C alifornia changed b u t
little d u rin g A ugust. E stim a te s of th e 1923
crop, as rep o rted by th e D e p artm en t of A g ri­
cu ltu re on A u g u st 25th, indicate a to tal yield
in th ese tw o states of 126,000 bales. A pproxi­
m ately 76,000 bales of cotton w ere produced in
th e d istric t last year. W a rm w eath er durin g
A u g u st and th e first w eeks of Septem ber
g re a tly benefited g ro w in g rice in California,
and th e reported condition of the crop on Sep­
tem b er 1st w as 83 per cent of norm al, an im ­
p ro v em ent of tw o points as com pared w ith th e
re p o rted condition on A u g u st 1, 1923. T he
expected yield (5,665,000 bushels o r 2,549,250
cen tals) is considerably sm aller th a n la st y ear's
p ro d u ction (8,260,000 bushels or 3,717,000 cen­
ta ls) p a rtly due to a reduction in acreage from
140.000 acres in 1922 to 105,000 acres in 1923,
and p a rtly due to w e ath er conditions d u rin g
th e early m onths of th e gro w in g season w hich
retard ed th e g ro w th of the crop. O n S eptem ­
b er 1, 1923, th e D e p artm en t of A g ricu ltu re
estim ated th e to tal yield of rice in th e U nited
S tates a t 32,617,000 bushels, com pared w ith
41.965.000 bushels produced in 1922. T h e re­




cent earth q u ak e d isaster in Jap an , and th e re ­
su ltin g need for additional supplies of food in
th a t country, has stim ulated dem and for C ali­
fornia rice, w hich is quite sim ilar to th a t grow n
in Japan. A large pro p o rtio n of th e carryover
of 1922 crop rice in C alifornia is reported eith er
to be in p rep aratio n for shipm ent or to have
been shipped to Jap a n for relief purposes.
G row ers are rep o rted to have received $2.88
per cental for num ber one paddy rice d u rin g
the first w eek of S eptem ber, com pared w ith
$2.68 a m onth ago and $2.63 one y e a r ago.
H a rv e stin g and th resh in g of beans is p ro g ress­
ing in the earlier ripening sections of C alifor­
nia. T he D e p artm en t of A g ric u ltu re now fo re­
casts a 1923 yield of 4,370,000 bushels. P ro ­
duction in 1922 to taled 4,778,000 bushels.
T h e g re a te r p a rt of th e deciduous fru it crops
of th e district, excepting apples and grapes,
has been harvested. P rev io u s estim ates of
yields in C alifornia have been changed b u t
little, as show n by the follow ing table :
Forecasted Y ield
Sept. 1. 1923
A a*. 1,1923
(tons)

Apples* ................
A pricots ...............
G rapesf ................
Peaches ................
P e a r s .....................
Prunes .................

7,062,000*
210,000
1,558,000
384,000
112,000
80,000$

(tons)

7,069,000*
210,000
1,653,000
393,000
112,000
80,000

Actual Yield
1922
(tons)

7,656.000*
120,000
1,660,000
420,000
125,000
110,000

*T otal crop (com m ercial an d non-com m ercial in boxes),
tln c lu d in g all v arieties (table, w ine, an d ra is in ).
^C om m ercial estim ate on Septem ber 10, 1923— 75,000 tons.

O n S eptem ber 1st th e D e p artm en t of A g ri­
cu ltu re estim ated the 1923 com m ercial apple
crop in Idaho, O regon, and W a sh in g to n at
36,111,000 boxes (bushels) and placed th e to tal
yield in th e U n ited S tates a t 100,170,000 boxes
(bushels). Pacific N o rth w e stern states p ro ­
duced 28,017,000 boxes (bushels) in 1922, and
production in th e U nited S tates to taled 93,270,000 boxes (bushels). E stim a te d 1923 p ro d u c­
tion of apples in Pacific N o rth w e stern sta te s
and the actual 1922 yield, as rep o rted by th e
D e p artm en t of A griculture, are given in the
follow ing table :
Foreca.ted
Actual
YicJd
Sept. 1. 1923
(bushels)*

Yield
1922
(bushel*)*

Idaho .......................................... 4,047,000
O r e g o n ......................................... 5,076,000
W ash in gton ............................... 26,988,000

2,925,000
3,780,000
21,312,000

T o tals ...................................... 36,111,000

28,017,000

*One bushel equals one box o f apples.

P rices obtainable for deciduous fru its in
fresh fru it m arkets d u rin g th e p re sen t season,
although generally low er th a n la st year, are
reported to have been m ore satisfac to ry to
grow ers in m any cases th a n re tu rn s for can­
nin g and d ry in g fruit. G row ers have therefo re
shipped m ore fru it fresh th a n in previous years,
the fresh fru it m ovem ent from th is d istrict

133

FEDERAL RESERVE AGENT AT SAN FRANCISCO

d u rin g th e p re sen t season to S eptem ber 9th
h av in g been larg e r th a n rep o rted in any p re­
vious corresponding period. S hipm ents from
C alifornia up to S eptem ber 9th of the p ast tw o
seasons follow :
1923 Season
1922 Season
to Sept. 9th

to Sept. 9th

(cars)

(care)

682
612
9,102
3,605
6,216
5,239
140

193
502
6,125
2,247
5,086
3,478
72

T otals ........................................... 25,596

17,703

A pricots ...........................................
Cherries ...........................................
Grapes ..............................................
Peaches ............................................
Pears .................................................
Plum s ...............................................
M ixed ................................................

CARLOADS

tion, will be approxim ately one-third sm aller
th a n last y e a r’s record pack of 15,477,865 cases.
T hese estim ates ten d to confirm previous re­
p o rts of a w idespread cu rtailm en t of can n ers’
operations d u rin g th e p resen t season, canners
generally having m aintained th a t th e y w ould
pack little m ore th an w as necessary to fill o r­
ders actually in hand. T h e g re a te st reductions
appear to have been m ade in th e packs of
canned apricots and freestone peaches, esti­
m ates of this season’s pack of the form er fru it
placing th e 1923 o u tp u t a t approxim ately oneth ird of last y e a r’s pack of 3,569,918 cases, and
of th e la tte r fru it a t approxim ately one-half of
th e 1922 pack of 1,314,597 cases.
E stim ates of the 1923 pack of canned v ege­
tables in C alifornia, as recently com piled by
th e C anners L eague of C alifornia, show sm all
increases for asp arag u s and spinach, b u t a de­
crease of m ore th a n 50 per cent for peas, w hen
com pared w ith figures for last y e a r’s pack.
F ig u res follow :
1923
1922
(cases)

A sparagus ........................................ 1,519,756
P eas ....................................................
223,923
Spinach ............................................ 1,383,831

T o tal shipm ents of oranges and lem ons from
C alifornia up to Septem ber 1st of the p ast tw o
seasons have been as follows :
N o v. 1st to Sept. 1st
1922-1923
1921-1922
(cars)
(cars)

O ranges .......................................... 45,417
7,612
L em ons ...........................................

27,005
9,135

No serious shortage of tran sp o rta tio n equip­
m ent in the fresh fru it shipping centers of this
d istrict has been rep o rted up to the present
tim e (S eptem ber 17th). Some congestion has
occurred, how ever, in E a ste rn term inal m ar­
kets, and shipm ents of grapes to N ew Y ork
have been tem porarily restricted by one im ­
p o rta n t carrier. T he m ovem ent of grapes from
C alifornia has not y et reached its peak, and al­
th o u g h th e prospective situ atio n is b etter than
it w as last y ea r at this tim e, w hen a serious
sh o rtage had already developed, well inform ed
factors in the trad e believe th a t the danger of
some shortage of cars as th e p resen t shipping
season progresses has not been entirely averted.

(cases)

1,239,839
473,260
1,180,525

A ccording to com m ercial reports, canners in
the Pacific N o rth w e st are packing only enough
fru it to fill orders received. P rese n t com m er­
cial estim ates of th e pack in th a t section indi­
cate th a t it will be m aterially sm aller th a n last
year for m ost of th e im p o rtan t varieties of
fruits canned.
A lthough som e increase in dom estic dem and
for canned fru its w as reported d u rin g A ugust,
the export m ark et rem ained sluggish, and b u y ­
ing generally has been sm aller in volum e th a n
a t this period in previous years of norm al bu si­
ness activity. W holesalers and jobbers con­
tinued to refrain from buying for stock. C on­
firm ation of earlier rep o rts of a reduced pack
of th e principal fru its th is year has resulted in
an upw ard tren d of prices, how ever, and on
Septem ber 18th the larg est factor in th e trad e
advanced its 1923 opening prices for canned
apricots, yellow peaches, and B a rtle tt pears,
and w ith d rew from the m arket its offerings of
some varieties of apricots, cherries, peaches,
and plum s, particu larly fru its packed in larg e­
sized containers. R epresentative quotations are
given in th e follow ing ta b le : 0peninS
Reviied
Choice Grade, N o . 2Va Cans

Price
1923

Price

(per case)

(per case)

A pricots ................................................. $2.15
Peaches, Y ellow ................................. 2.10
Pears, B artlett .................................... 2.65

$2.20
2.15
2.75

Canned Fruits and Vegetables

Dried Fruits

Com m ercial estim ates indicate th a t the 1923
pack of canned fru its in California, w here th e
fru it canning season is now nearing com ple­

As m ore com plete d ata becam e available d u r­
ing A ugust, estim ates of 1923 dried fru it yields
in C alifornia w ere generally revised dow nw ard.




134

MONTHLY REVIEW OF BUSINESS CONDITIONS

P re se n t com m ercial estim ates, those of one
m onth ago, and D ep artm en t of A g ricu ltu re es­
tim ates of the actual yield in 1922 for dried
apricots, figs, peaches, and prunes in C alifornia
are given in the follow ing table :
D ried Fruits

A pricots ..................
F igs ..........................
P eaches ...................
Prunes .....................

Sept. 1, 1923
Estimate
(tons)

Aug. 1, 1923
Forecast
(tons)

17,500
, 10,475
. , 23,400
. . 80,000t

20,000
10,950
25,000
80,000t

^Com m ercial estim ate.
fU n ite d S tates D e p artm e n t o f A g ric u ltu re estim ate.
10, 1923, com m ercial estim ate— 75,000 tons.

Actual
Yield
1922
(tonsj

10,250
10,950*
28,000
110,000
Septem ber

No official estim ate of th e 1923 to n n ag e of
raisin s has y et been published, as u n ce rtain ­
ties re g ard in g the am ount of raisin grapes
w hich will be shipped in the fresh state and
re g ard in g th e e x ten t of th e dam age to th e crop
by m ildew have m ade it exceedingly difficult
to fo recast production. T h ere w ere 220,000
to n s of raisins produced in C alifornia in 1922.
P revious estim ates, placing th e 1923 yield of
p runes in th e Pacific N o rth w e st (O regon and
W a sh in g to n ) a t 22,500 tons, have n o t been
changed d u rin g th e p ast four weeks. P ro d u c­
tion in 1922 w as 36,000 tons.
C om m ercial rep o rts sta te th a t bo th foreign
and dom estic m ark ets for dried fru its have
stren g th en e d d u rin g th e p ast m onth. O n Sep­
tem ber 10, 1923, the C alifornia P ru n e and A pri­
cot G row ers A ssociation, w hich controls ' the
m ajo rity of dried apricots and prunes produced
in C alifornia, announced th a t it w as still hold­
ing ap p roxim ately 12,500 tons of unsold 1922
crop prunes. E stim a te d unsold stocks held by
o th er factors in C alifornia and the Pacific
N o rth w e st am ounted to 10,000 ton s on Sep­
tem b er 1st, m aking a to tal unsold carryover of
app ro x im ately 22,500 tons of old crop prunes
a t the beginning of S eptem ber, approxim ately
15 per cent of th e 1922 crop. T h e sam e associa­
tion had, on S eptem ber 10th, unsold stocks of
dried apricots am o u n tin g to 1,250 tons, or 12
p er cent of last y e a r’s output.
T h e g ro w ers’ associations, w hich control the
bulk of dried peach and raisin production in
C alifornia, have recently announced 1923 open­
ing prices for these fruits. T h e new prices are
slig h tly h ig h er th a n previous spot prices for old
crop fru it, b u t are low er th a n 1922 opening
prices. Q u o tatio n s are given in the follow ing
ta ^ e 1

D ried Peaches— Choice u n peeled
yellow— B ulk in 25-lb. boxes
R aisins— No. 3 cr. Loose M us­
catels— B ulk in 25-lb. bo x es.
R aisin s— T hom psons — B u lk in
25-lb. boxes ................................
*L a te r advanced to 7% cents.




Percentage
Decrease
Spot
Opening Prices
1923
Prices
(cents per pound) Compared A ug. 15,
1923
1922
with 1922
1923

7^*

8'/2

1 1 3 6 . 1 7VÁ
10

12.5

8

10

15.0

8

M any of the so-called independent packers
are reported to be q uoting prices slightly low er
than those of the larg er factors.
Livestock
O pen ranges, fenced grazin g land, and farm
p astures continued in b e tte r th an average con­
dition du rin g A ugust. Seasonal rains in the
In term o u n tain states favored th e g ro w th of
w in ter forage, and feed is now plentiful in all
but a few sm all areas of n o rth ern A rizona and
so uth ern U tah. L ittle rain has fallen in the
Pacific C oast states, b u t dry p astu re is fu rn ish ­
ing sufficient feed to keep livestock in excellent
condition.
A norm al seasonal increase in receipts of
cattle, calves, and sheep, and a sm all decrease
in hog receipts w as reported from th e eigh t
principal livestock m arkets of th e d istrict d u r­
ing A ugust, 1923. T o tal receipts of all classes
of livestock w ere larg er th an in A u gu st, 1922,
as show n by th e follow ing table :
Receipts ol Livestock at Eight Principal Markets
Cattle
Calves
Hogs

August, 1923......... 69,256
July,
1923......... 66,013
A ugust, 1922......... 60,401

23,918
22,189
19,619

170,161
170,721
105,876

Sheep

239,364
225,836
216,507

THOUSANDS

Receipts of Livestock at Eight of the Principal Markets of the District
1922*1923. (Los Angeles. Ogden, Portland, Salt Lake C ity, San
Francisco. Seattle, Spokane, and Tacoma included)

P rices for b etter grades of beef cattle ad­
vanced during A ugust, in response to an active
dem and, b u t it is repo rted th a t only a sm all
proportion of the grass-fattened cattle reaching
the m arkets of the d istrict d u ring th a t m onth
could be classified as first grade stock. T he
price of hogs also advanced d u rin g th e m onth,
w hile sheep and lam b prices g enerally tended
dow nw ard.
T he stro n g dem and for feeder and stocker
anim als noted d u rin g recen t m onths, p artic u ­
larly in Pacific N o rth w estern m arkets, is re ­
ported to have declined d u ring A ugust.

FEDERAL RESERVE AGENT AT SAN FRANCISCO

Prices
R ev ersing the dow nw ard tren d of recent
m onths, th e general level of prices for the
principal ag ricu ltu ral products of this d istrict
advanced d uring A ugust. W h eat, barley, rice,
cotton, b u tter, eggs, cattle, sheep, lam bs, and
hogs w ere am ong the products p articip atin g in
th e advance, and on S eptem ber 1st all of these
p roducts w ere selling a t prices su b stan tially
above those of a year ago, as also w ere sugar
and wool. T he price of w heat did not hold all
of its A u g u st gain, how ever, and on S eptem ber
12th w heat for S eptem ber delivery w as quoted
on th e Chicago m ark et a t 99% cents per
bushel com pared w ith a price of $1.01 ^4 cents
per bushel quoted on S eptem ber 16, 1922. M id­
dling upland cotton prices on th e N ew O rleans
m ark et (spot) advanced from 22 cents per
pound on A u g u st 3rd to 24^4 cents per pound
on S eptem ber 7th and th en rose sharply to
28% cents per pound on S eptem ber 18th. B eet
sugar, w hich has n o t been quoted on th e San
F rancisco m arket for th e p ast tw o m onths,
w as quoted again on S eptem ber 4th, the price

135

nam ed on th a t date being $8.00 per 100 pounds.
T his quotation w as later revised upw ard and
on Septem ber 13th beet sugar sold for $8.40
per 100 pounds. T h e average of 98 wool q u o t­
ations on the B oston m ark et w as 76.46 cents
per pound on S eptem ber 7th, a drop of tw o
ÍNDEX NUMBERS

________

Wholesale Prices and the Cost of Living, 1920-1923

United States Bureau of Labor Index of W holesale Prices (1 9 1 3 = 1 0 0 )
National Industrial Conference Board Index of the Cost of Living (July 1 914= 100)

(A ) Com m odity Prices —
Commodity

T w en ty Basic C om m odities (F. R. B. of N. Y .) 1913=100.
W holesale Prices (U . S. Bureau of Labor) 1913= 100 ...........
Cost of Living (N ational Industrial Conference Board)
July, 1914=1013..................................................................................
Cattle (N ative B e e f). . .W eek ly average price at C h ica g o ..
S h e e p ..................
L a m b s ................ .............W eek ly average price at C h icago..
H o g s ...................
W h e a t ................. .C hicago contract price for Sept. W h eat.
B a r l e y ................. .Shipping B arley f. o. b. San F r a n c isc o ...
Rice ..................... .California F ancy Japan at San Francisco
C otton ................ .M iddling U plands— W eek ly range of spot
quotations at N ew O rlean s.......................
W o o l ................... .A verage of 98 quotations at B o sto n .........
F l o u r ................... .F irst Grade Fam ily Patent f. o. b. Pacific
Coast m ills.......................................... ............
Sugar .................. .B eet granulated f. o. b. San F r a n c is c o ...
O ranges ............. .V alencias, Special Brands, L os A n g eles.
L em ons .............. .Special Brands at L os A n g e le s...................
Dried A pples
C hoice in 50-lb. boxes f. o. b. California.
Dried A p r ic o ts.. .Choice in 25-lb. b oxes f. o. b. California.
Prunes ................ Size 40/50 in 25-lb. b oxes f. o. b. C a lif...
R aisins ............... L oose M uscatel in 25-lb. b oxes f. o. b.
California ........................................................
Canned A p ricots.C h oice, sliced 2i^s f. o. b. C alifornia.........
Canned Peaches. .Cling, Choice, sliced 2 ^ s f. o. b. C alif...
Canned P e a r s ... .B artlett, Standard 2% s f. o. b. California
Raw M ilk ............ .Pacific Coast— A ugust avera g e...................
Butter ................. .93 score at San F ra n cisco ..............................
E g g s .................... .E xtras— San F ra n cisco ...................................
C o p p e r ................ .E lectrolytic; N ew Y ork S p o t.....................
L e a d .................... .N ew Y ork S p o t.................................................
S ilv e r ................... .N ew Y ork F o r e ig n ..........................................
Zinc ..................... .E ast St. L ouis S p o t........................................
Petroleum ........ .California 35° and a b o v e................................
D ouglas F ir ....... .2x4, 16-ft. N o. S1S1E f. o. b. S ea ttle .........
D ouglas F ir ....... .12x12 T im bers f. o. b. S e a ttle .....................
*1933.




U nit

Sept. 7. 1923

151.5
150.0
100 lbs.
100 lbs.
100 lbs.
100 lbs.
bu.
cental
cental
lb.
lb.
bbl.
lb.
box
box
lb.
lb.
lb.
lb.
doz.
doz.
doz.
100 lbs.
lb.
doz.
lb.
lb.
oz.
lb.
bbl.
M ft.
M ft.

161.6
$10.40
7.15
12.95
8.45
1 .0 1 ^ -1 .0 3 #
1.50-1.70
5.75

One Month Ago

143.1
151.0

One Y ear Ago

140.6
155.0

161.9
154.5
$ 9.80
$ 9.75
5.90
6.40
12.55
12.40
8.00
6.95
.96rt-.97y4 1.005^-1.02^
1.20-1.30
1.35-1.45
4.85
5.25

24.50-25.50* 22.00-23.00* 20.50-21.00*
78.47*
71.55*
76.46*
6.96
8.00*
3.50-4.00
7.75-8.25
*.07^-.07¿4
*.08^-.08¿4
*.09y2-.0 9 H
.08
2.60
2.25
2.35
2.79
.49
.49
•133/4
7.00*
.6334
6.55-6.60*
1.04
19.50
25.00

6.95
8.05*
3.75-4.00
7.50-8.00
.06^-.06¿4
.0954-09^2
.0 9 # -.0 9 ^
.08
2.60
2.25
2.35
2.76
•44¿4
.36
• 14^2
6.70*
•625^

6.15-6.20*
1.04
20.50
25.00

7.43
6.70*
10.00-10.50
7.25-7.50
.09-.09yA
.2 2 ^ -2 3
.11¿4-.12
.10
3.25
2.60
2.85
2.34
.43*4
.44
.14
6.00*
.69%
6.25-6.30*
1.95
18.50
18.00

136

M ONTHLY REVIEW OF BUSINESS CONDITIONS

cents per pound since A u g u st 3rd. O ne year
ago th is average stood a t 71.55 cents per pound.
A s has been m entioned in p arag ra p h s on
canned and dried fruits, the m ark et for these
p ro d u cts has becom e m ore active d u rin g recent
weeks, and prices of certain grades and v ari­
eties of canned fru its have been advanced.
O p en in g prices on dried fru its cu rren tly an ­
nounced have been uniform ly below those of a
y ear ago.
C ontinued stre n g th e n in g of lead and zinc
prices, a fractional decline in copper prices, and
a slig h t dow nw ard tendency in prices for cer­
tain sizes and g rad es of lum ber characterized
th e price situ atio n am ong th e chief non-agricu ltu ra l p roducts of th e d istrict d u rin g A ugust.

N orm al seasonal changes in o u tp u t of flour,
stocks of flour, and stocks of w h eat m arked
th e A u g u st re p o rts received by th is b ank from
sixteen of the principal m illing com panies in
th e d istrict. R eported production of 538,982
barrels of flour d u rin g A ugust, 1923, w as an
advance of 37.0 per cent over production d u r­
in g Ju ly , 1923. Stocks of flour held by th e six-

for w hich a continuous record is kept are given
in th e follow ing table :
Aug., 1923

July, 1923

A ug., 1922

538,982
393,330
503,216
O utput ................ (bbls.)
Stocks of Flour* (bbls.)
397,391
452,435
381,127
Stocks of W heat* (bu.) 1,460,100 1,233,375 1,911,887
*As o f the first day of th e follow ing m onth.

P ro d u ctio n of 44 flour m ills rep o rtin g
th ro u g h sectional m illers’ associations of th is
d istrict w as 40.6 p er cent g re a te r d u rin g
A u g u st th a n d u rin g July, 1923. A decline of
38.6 per cent reported for flour m ills in O regon
w as m ore th a n offset by th e large increases in
o th er flour producing states, as show n by th e
follow ing ta b le :
N o . of M ills
Reporting
Aug., July,
1923
1923
C alifornia . 10
10
2
..
3
O regon . . . . 15
15
W ashington. 16
17

D istric t . 44

44

Per Cent Increase or
Decrease ( — )
A ug.. 1923 Ju ly, 1923
--------Output - — v
Com p a ed Compared
Aug.. 1923 July, 1923
with
with
(barrels) (barrels)
July, 1923 June, 1923
372,653 210,860
—
0.7
76.7
12,212
7,469
6.3
63.5
22.2
82,558 134,471
— 38.6
33.4
343,426 223,733
53.4
810,849

S76yS33

40.6

16.9

Lumber
G enerally increased activ ity characterized
th e lum ber in d u stry of th e d istric t d u rin g
A ugust. O p erato rs are rep o rted to be p ro d u c­
ing lum ber in excess of p re sen t req u irem en ts
in o rd er to build up stocks, w hich have been
below norm al for som e tim e past. T h e am o u n t
of new business entered in the books of reMILLIONS OF BOARD FE E T

TH O U S A N D BARRELS
9001

0 iTTTTTTTTmTTi TTT\ j rTT^T~T1TrT^TiriirD
1922

1923

M onthly Floor Output, and Stocks of Wheat and Flour at End of Month
of 16 Reporting M illing Companies

teen m ills w ere reduced from 452,435 barrels
on A u g u st 1st to 397,391 b arrels on Septem ber
1, 1923, in d icatin g th a t the g re a te r p a rt of the
increased production d u rin g A u g u st w as the
re su lt of increased sales, ra th e r th an of m illing
to replenish stocks. A u g u st o u tp u t and pres­
en t flour stocks are 7.1 per cent and 4.5 per
cent, respectively, g re ater th a n the reported
figures one year ago, probably reflecting a n o r­
m al g ro w th of activ ity in th e in d u stry corres­
po n d in g to th e g ro w th and developm ent of th e
district. F ig u res for sixteen m illing com panies




Lum ber Production, Orders Received, and Shipments in Twelfth
Federal Reserve District as Reported by Four Lum ber
Associations. 1922-1923

p o rtin g mills, although less th a n production,
w as considerably in excess of one m onth ago
or one y ear ago. F igures show ing th e activ ity
of approxim ately 200 re p o rtin g m ills follow :
(000 om itted.)
Production .....................
S h ip m e n ts .......................
Orders ..............................
U nfilled O r d e r s .............

A ug., 1923
(board feet)

July, 1923
(board feet)

A ug., 1922
(board feet)

664,864
551,355
533,327
400,964

604,376
528,350
495,277
429,558

561,710
471,861
475,519
438,138

137

FEDERAL RESERVE AGENT AT SAN FRANCISCO

T h e dem and for Pacific C oast lum ber on the
A tlan tic seaboard im proved. T ra n s it stocks at
E a ste rn seaports, w hich had previously exer­
cised a re ta rd in g influence on th e m arket, w ere
larg ely disposed of d u rin g July, and th is condi­
tio n w as reflected in an increase of lum ber
ship m en ts to A tlan tic C oast te rrito ry d u rin g
A u g u st. Some slight im provem ent in dem and
a t M iddle W e ste rn d istrib u tin g points has re ­
su lted in increased shipm ents to th a t section
of th e country. In C alifornia, th e th ird g re at
dom estic m ark et for Pacific C oast lum ber, con­
tinued record building operations in and about
L os A ngeles have stim u lated th e dem and for
lum ber, and th e large stocks previously held on
th e w harves of south coast p o rts have been
g re atly reduced. G reater activ ity in th e export
m ark et also w as noted d u rin g A ugust. B ook­
ing of orders, w hich w as discontinued d u rin g
Ju ly , due to th e inability of th e m ills to m ake
p ro m p t shipm ent, w as resum ed, and shipm ents
increased by approxim ately 25 per cent, ac­
cording to a re p o rt of th e D ouglas F ir E x ­
p lo itatio n and E x p o rt Com pany. Japan, A u s­
tralia, and th e w est coast of S outh A m erica
have continued as th e principal foreign p u r­
chasers of lum ber from th is district. Some in­
crease in dem and from the first nam ed country
is expected as a re su lt of th e recent enorm ous
d estru ctio n of buildings in m any of th e cities
and tow ns of th a t nation.
P rices for lum ber, in bo th th e dom estic and
ex p o rt m arket, have rem ained steady th ro u g h ­
o u t the m onth, although som e increases and
som e decreases have been reported for certain
sizes a t various mills.
D espite continued capacity operation of log­
g in g cam ps, little has been accom plished in th e
w ay of accum ulating a w in ter reserve of logs
to supply m ills w hen th e loggers are no longer
able to w ork, because m ills a t th e p resen t tim e
are consum ing practically all of th e logs cur­
re n tly produced.
M ining
P ro d u cers of lead and zinc, both in th is dis­
tric t and in the co untry as a whole, report th a t
th ey m ined less m etal d u rin g A u g u st th an
d u rin g th e earlier m onths of th is year, continu­
ing th e slight decrease in production first noted
in July. P ro d u ctio n of copper, despite some
cu rtailm en t in scattered m ining properties,
continued at a relatively high level, and it is
reported th a t o u tp u t exceeded dem and d u rin g
Ju ly and possibly d u rin g A ugust. R eduction
in th e o u tp u t of lead is largely involuntary,
being due in g re at p a rt to th e destruction by
fire of one of the principal lead m ining plants
in the state of Idaho.




F ig u res of national production of copper,
silver, and zinc for July, 1923, June, 1923, and
July, 1922, are given in th e follow ing ta b le :
Copper (lb s.)
July. 1923
Jo n «, 1923
July. 1922
(m ine production) 125,249,347 125,433,000 90,998,646
Silver (oz.)
(com m ercial bars)
5,406,000
5,100,840 4,340,574
Zinc (ton s)
(slab) ....................
43,065
42,840
28,547
F ig u res for lead are no t available.

T h e im proved m arket for lead and zinc,
w hich follow ed the reduced production and in ­
creased dem and of late Ju ly and early A ugust,
continued th ro u g h o u t th e latte r m onth and
into Septem ber. T h e m ark et for copper, on th e
contrary, w eakened as th e probability of a
tem p o rary excess of production over sales
grew stronger, the price falling to new low
levels for th e p resen t m ovem ent. O n S eptem ­
ber 17th electrolytic copper on th e N ew Y o rk
m ark et w as quoted a t 13*H$ to 13^4 cents p er
pound. Silver prices have fluctuated u n stead ­
ily d u rin g the m onth. A verage prices paid for
copper, lead, silver, and zinc d u rin g A ugust,
1923, July, 1923, and A ugust, 1922, follow :
„

/1t .

Aog., 1923

Copper (lb.)
(cents)
N ew York E lectr o ly tic .. 13.59
Lead (lb.)
N ew Y o r k .........................
6.56
Silver (oz.)
N ew York F o r e ig n ......... 62.81
Zinc (lb.)
St. L o u i s ............................ 6.32

Joly, 1923

A o g .,1922

(cents)

(cents)

14.32

13.97

6.24

5.82

63.015

69.41

6.09

6.21

P etroleum
D espite continued efforts of C alifornia oper­
ators to curtail production of petroleum , daily
average o u tp u t in A ugust reached th e record
figure of 852,903 barrels, an increase of 4.7 per
cent over average daily production in July,
1923 (814,906 b arrels), and of 123.1 per cent
over average daily production for A ugust, 1922
(382,221 b arrels). T h ere w ere 61 new w ells
b ro u g h t in d u rin g the m onth w ith an initial
daily production of 118,433 barrels. T h ere
w ere 16 wells abandoned.
C onsum ption of petroleum produced in Cali­
fornia averaged 708,767 barrels per day d urin g
A ugust, 1923, an increase of 14.2 per cent over
July, 1923, and of 137 per cent over A ugust,
1922. A verage daily consum ption, however, is
still less th an production, and stored stocks
rose to 83,123,835 barrels on Septem ber 1, 1923,
an am ount 5.7 per cent g reater than the 78,655,
604 barrels stored on A u gu st 1, 1923. S tored
stocks on Septem ber 1, 1922, am ounted to 54,272,194 barrels. H eavy shipm ents of crude
oil to the east coast of the U nited S tates con­
tinued, receipts of C alifornia oil at A tlantic

13$

MONTHLY REVIEW OF BUSINESS CONDITIONS

and Gulf coast ports advancing from a daily
averag e of 168,129 barrels for the m onth of
Ju ly to a daily average of 211,741 barrels for
A u g u st.
A s is norm al a t this season of the year, con­
su m p tion of gasolene, th e principal derivative
of crude petroleum , continues to exceed pro­
duction, w ith a consequent decrease in stored
stocks. Stocks held in C alifornia declined
from 142,859,892 gallons on Ju ly 1, 1923, to
136,585,654 gallons on A u g u st 1, 1923, the
sm allest am o u n t rep o rted in storage since
M arch 1, 1923. Stocks w ere 7.2 per cent less
on A u g u st 1, 1923, th a n on Ju n e 1, 1923, and
225.8 per cfent g re a te r th an on A u g u st 1, 1922.
M IL L IO N S

200

Electric Energy
S uggestion of a slig h t slackening in in d u s­
trial activity d u rin g Ju ly is afforded by figures
of sales of electric energy for industrial p u r­
poses received from 20 of th e principal pow er
com panies of the district. Sales d u rin g July,
1923, w ere b u t 16.5 per cent g re a te r th a n du rin g
July, 1922, w hereas d u rin g each of the previous
six m onths of this y ear sales had been 20 per
cent or m ore g re ater th a n in th e correspon d in g
m onth of 1922. T he g re a te r p a rt of th e gain
recorded in July, 1923, as com pared w ith July,
1922, w as in sales of electric energy for general
m an u factu rin g purposes, alth o u g h th e m ining
in d u stry and th e petroleum in d u stry used
pow er in excess of th eir purchases a y ear ago.
P ercen tag e com parisons of sales of 20 of th e
principal pow er com panies by certain in d u s­
tries and by sections of th e d istrict are p re­
sented in th e follow ing ta b le :
Percentage Increase or Decrease ( — ) July, 1923, compared
with July, 1922
Tota^
A gricul­
M a n u ­ Industrial
ture
M ining facturing
Sales

8.3
California ...................
Pacific N orth w est . . . — 14.6
Interm om itain States ■
— 6.4
T w elfth D istrict . . . .
6.8

C A L IF O R N IA
Production. Shipments, and Stored Stocks of Petroleum, and Refinery
Stored Stocks of Gasolene. 1922-1923

G asolene prices have recently declined to the
low est levels since 1915. O n A u g u st 22, 1923,
a reduction of 1 cent per gallon w as announced
in N o rth e rn C alifornia, N evada, W ashington,
O regon, and A laska, and of 2 cents per gallon
in S o u thern C alifornia. A fu rth e r reduction
of one cent per gallon w as announced on Sep­
tem b er 6th. H ig h and low points of retail g as­
olene prices a t San F rancisco d u rin g recent
y ears are show n in th e follow ing ta b le :
Cents per
Gallon

May,
July,
A ugust,
Septem ber,

1914............................................................
1915............................................................
1920............................................................
1923............................................................

14#
11
27
14

P rices for crude oil m entioned in th e M o n th ­
ly R eview for A u g u st, 1923, now effective
th ro u g h o u t th e en tire S ta te of C alifornia, w ere
unchanged d u rin g th e m onth.




0.6
2.2
84.8
9.9

29.5
46.7
2.9
32.2

18.0
11.5
16.7
16.5

F ig u re- of to tal sales for July, 1923, show ed
an increase of 2.7 per cent over Ju n e, 1923, al­
m ost w holly due to increasing needs of a g ri­
cultural consum ers w ho used 5.7 per cent m ore
pow er d u rin g July. C onsum ption of electric
energy a t m ines, oil fields, and lum ber m ills
declined d u rin g Ju ly as com pared w ith June.
T he decrease in sales to th e lum ber indu stry ,
w hich am ounted to 16.7 per cent, w as chiefly
due to the usual seasonal closing of the m ills
d u rin g the first tw o w eeks of July.
F ig u res show ing the num ber of in d u strial
consum ers and industrial sales of re p o rtin g
com panies durin g July, 1923, and 1922, follow :
Num ber of
Industrial Consumers
July,
July.
1923
1922

C alifornia .................. 72,014
Pacific N orth w est . . 12,293
In te rm o u n ta in States 5,419*
T w e lfth D istric t . . . . 89,726

52,299
10,860
10,342*
73,501

Industrial Sales K .W . H .
July,
July.
1923
1922

264,813,222
74,055,388
65,360,054
404,228,664

224,411,649
66,416,285
55,989.458
346,817,392

*D ue to a change in the statistic a l m ethod of one re p o rtin g com ­
pany these figures are no t com parable.

Retail Trade
Sales of 35 d ep artm en t stores in seven cities
of th e d istrict w ere 13.5 p er cent g re a te r in
value d u rin g A ugust, 1923, th a n d u rin g A u g u st,
1922. T h is increase as com pared w ith th e co r­
responding m onth a year ago, alth o u g h less
th an th e increases rep o rted for th e tw o p re­
ceding m onths, is g re a te r th a n th a t rep o rted
for A pril or M ay, 1923. T h ere w as a norm al

FEDERAL RESERVE AGENT AT SAN FRANCISCO

seasonal increase in sales d uring A ugust, 1923,
as com pared w ith July, 1923, am ounting to
16.9 per cent.
Stocks of goods held by re p o rtin g stores in­
creased 6.5 per cent in value durin g A ugust,
as goods purchased for the fall and w in ter
trad e w ere received and placed in stock. T he
value of stocks (selling price) held on Septem ­
ber 1, 1923, w as 13.9 per cent g re ater than the
value of stocks held by these stores a y ear ago.
T h e average annual ra te of stock tu rn o v er in­
dicated by the figures of sales and stocks for
A ugust, 1923, w as 2.88, com pared w ith a ra te
of 2.92 for A ugust, 1922.

139

during A ugust, 1923, com pared w ith July, 1923,
the exceptions being ag ricu ltu ral im plem ents
and groceries. All re p o rtin g lines show ed in­
creases in the value of sales d u rin g A ugust,
1923, as com pared w ith A ugust, 1922. Sales of
ag ricu ltu ral im plem ents and autom obile tires,
w hich w ere less in value in July, 1923, th a n in
July, 1922, show ed increases of 14.9 per cent
and 3.2 per cent, respectively, d u rin g A ugust.
P ercen tag e increases or decreases (— ) in th e
value of A u g u st sales of all rep o rtin g firm s in
each line of business are presented in th e follow ing tab le:
E igh, M „ n«h .
Ending Aug., 31,
Aug., 1923.
1923, com*
compared with pared with
Aug.,
July, same period
1922
1923
in 1922

Number
of Firm s

MILLIONS OF DOLLARS

A gricultural Im plem ents 24
A utom obile S u p p lie s.... 17
A utom obile T ir e s............ 18
10
D ry Goods ....................... 15
E lectrical E quipm ent. .. 6
Furniture ........................... 17
Groceries ........................... 29
Hardware ......................... 20
12
S ta t io n e r y ......................... 28

14.9
17.1
3.2
12.4
6.7
10.9
11.5
9.8
12.1
5.4
7.3

— 13.3
2.9
34.7
7.1
34.8
.1
16.5
— 5.0
5.1
28.2
24.6

10.0
22.7
12.5
13.2
18.5
35.4
30.2
12.7
25.8
15.3
18.6

AUGUST PRICES 1922 = 1009*= AUGUST 1922 SALES
U.S.BUREAU OF LABOR INDEX
NO. WHOLESALE PRICES
AGRICULTURAL IMPLEMENTS
AUT0M08ILE SUPPLIES
AUTOMOBILE TIRES

Net Sales of 31 Department Stores in Twelfth Federal Reserve District
(in Millions of Dollars)

DRUGS

A detailed statem en t of th e percentage
changes in the value of sales and stocks of re­
p o rtin g d ep artm en t stores in th is d istrict follo w s :
Percentage increase
or decrease (— ) in
value of
sales A ug., 1923,
compared with
N o. of
A ug.,
July,
1922
1923
Stores

Percentage increase
or decrease (— ) in
value of
stocks Aug., 1923,
compared with
Aug.,
July,
1923
1922

6
Los A n g e le s. .
4
Oakland . . . . .
Salt Lake Gitv . . . 4
San Francisco. ...1 0
5
Seattle ............
5
Spokane ........

20.4
7.2
13.2
9.6
8.3
3.2

18.0
18.1
- - 1.9
22.6
10.1
8.3

23.7
7.6
— 2.1
14.9
6.3
6.3

2.8
5.0
8.1
7.5
13.7
4.1

35

13.5

16.9

13.9

6.5

D istrict51 . . .

*Figures fo r one store included in d istric t figures, but not ineluded in figures fo r cities shown above.

D RY GOODS
FURNITURE
GROCERIES
HARDWARE
SHOES
S TA TIO N E R Y
20

40

60

80

100

120

140

180

Dollar Value of Sales of Representative Wholesale Firm s and General
Wholesale Prices in August, 1923, compared with August, 1922

C ollections d u rin g the p ast th ree m onths
have been reported as follow s:
Number of Firm s Reporting Collections as
Excellent Good
Fair
Poor

June,
1923......................... 3
July,
1923......................... 5
A ugust, 1923......................... 5

56
43
48

72
75
79

8
8
7

W holesale Trade
N orm al seasonal increases in trad e at w hole­
sale, resu ltin g from re ta ile rs’ purchases of fall
and w in ter stocks, have been reflected in re­
p o rts received by this bank d u rin g the p ast
m onth from approxim ately 200 firms in eleven
lines of business. Of the eleven lines nine re­
ported an increase in the value of th eir sales




Em ploym ent
T h ere has been little change in em ploym ent
conditions in this d istrict during the p ast
m onth. As a rule h arv est hands, w hile n o t
overabundant, have been sufficiently num erous
for h arv estin g th e d istric t’s crops. F rom th e
W illam ette V alley of O regon, how ever, have

140

M O NTHLY REVIEW OF BUSINESS CONDITIONS

com e re p o rts of a serious sh o rtag e of hop pick­
ers and w ages for th is w ork have risen to the
h ig h est level ever recorded (70 cents per picked
b ask e t). F arm w ages in general have in­
creased rapidly d u rin g 1923, according to re ­
p o rts of th e U n ited S tates D e p artm en t of A g ri­
culture. T h e p rev ailin g farm w age ra te in this
d istrict on Ju ly 1,1923, w as 24.7 p er cent higher
th a n on J a n u a ry 1, 1923, and 17.1 per cent
h ig h er th a n th e average w age paid d u rin g 1922.
W ag es paid farm help in th is d istric t range
from 12 p er cent to 118 per cent higher th a n
w ages in o th e r p a rts of th e U n ited States.
F ig u res show ing farm w age rates in the W e st­
ern S tates and in th e U nited S tates on Ja n u a ry
1, 1923, Ju ly 1, 1923, and in previous years
f° ll0 W :
Per M onth with Board

1 9 1 0 .................................................
1915 .................................................
1920
1921
1922
January 1, 1923............................
July 1, 1923..................................

United
States

$19.21
21.26
46.89
30.14
29.17
27.81
34.38

Western
States

$32.69
33.50
73.21
47.29
45.57
42.78
53.35

R ecent gains in building activ ity in this dis­
tric t have increased th e dem and for skilled
b u ild in g trad e s craftsm en, and a slig h t scarcity
of b ricklayers, p lasterers, and tile setters has
been rep o rted in several sections. E m ploy­
m en t in th e m etal trad e s has declined slightly
d u rin g th e p a st m onth.
R ep o rted cu rta ilm en t of production in the
m in in g in d u stry has n o t seriously altered the
em ploym ent situ atio n in th e m ining districts,
and o p erato rs still com plain of a sh o rtag e of
skilled m iners. W ag es for both skilled and u n ­
skilled m iners have advanced $1 and $1.25 per
day d u rin g th e p a st y ear as show n by th e fol­
low ing table w hich p resen ts th e average fig­
ures reported from several m ining d is tric ts :
Skilled

Unskilled

Sept. 1, 1922-Oct. 1, 1922........... $4.75-6.00 $4.00-4.50
Oct. 1, 1922-March 15, 1 9 2 3 .... 5.25-6.50
4.50-5.00
March 15, 1923-Sept. 1, 1 9 2 3 ... 5.75-7.00
5.00-5.50

T h e num ber of m en em ployed in th e lum ber
cam ps of th e Pacific N o rth w est, although re­
m ain in g larg e r th a n in 1922, declined slightly
d u rin g A u g u st, approxim ately 83,000 m en
b eing re p o rted on payrolls on S eptem ber 1,
1923, as com pared w ith 90,000 on A u g u st 1,
1923, and 81,500 on S eptem ber 1, 1922. In ­
creased shipping activ ity d u rin g th e cu rren t
y ea r is reflected in increased em ploym ent of
longshorem en a t Pacific C oast ports. A verage
w eekly earnings of longshorem en based on
identical h o u r rates have increased 18.5 per
cen t d u rin g the year.
T h e follow ing figures based on the reports
of 40 large firm s usually em ploying 501 or
m ore m en give a com parison of em ploym ent




conditions in m an u factu rin g industries d u rin g
A ugust, 1923, and 1922.
pe rce n t
Num ber
Increase Aug.,
of
Num ber of M en on Payroll* 1923, over
Firm s
A ug.. 1923 A ug.. 1922 A ug.. 1922

Los A n g e le s..........
Portland ...............
San F r a n c isc o .. . .
Seattle ..................

16
8
10
6

33,946
9,324
7,746
2,357

28,753
6,439
6,735
2,343

18.1
44.8
15.0
0.6

*These figures do n o t re p re sen t th e to tal num ber o f m en engaged
in m a n u fa c tu rin g a ctivities in these cities, bu t only th e payroll
figures of a selected num ber o f firms.

A utom obile R egistrations
P u rch ases of new autom obiles in th is d is­
trict, as indicated by th e n u m ber of new cars
registered d u rin g July, continue to exceed
those of a y ear ago. In four states for w hich
com parative d ata are available th ere w ere 54.9
per cent m ore new passenger cars and 21.3 p er
cent m ore new com m ercial cars reg istered d u r­
ing July, 1923, th an d u rin g July, 1922. D u rin g
the first seven m onths of 1923, as com pared
w ith th e sam e period in 1922, th ere w as an in ­
crease of 77.7 per cent in re g istra tio n s of new
passenger cars, and re g istra tio n s of new tru c k s
increased by 29.6 per cent. F ig u res sho w in g
reg istratio n of new autom obiles in th e sta te s
of this d istrict (except N evada, for w hich fig­
ures are no t available) for th e first seven
m onths of 1923 and 1922 are presen ted in th e
follow ing tab le:
Tota,
Tota|
N e w Passenger
Ca rs Registered
Jan. 1 to A ug. 1
1923
1922

N e w Commercial
Cars Registered
Jan. 1 to A ug. 1
1923
1922

6,058
A rizona ................
C a lifo r n ia ............. 134,294
Idaho .............
5,403
O r e g o n .................
21,873
U tah ...................... 7,286
W ash in gton . . . .
30,006

2,474
79,357
2,624
9,879
*
10,195

513
13,966
346
877
711
3,002

T otal (4 states) 167,628

94,334

15,402

135
9,859
249
871
*
*
11,114

*N ot available.

T o tal re g istratio n s of old and new au to m o ­
biles in six states of th e d istric t (figures for
N evada are not available) to S eptem ber 1, 1923,
num bered 1,521,031, an increase of 28.1 per cent
over the 1,187,404 cars reg istered in th e sam e
period in 1922.
T h e expected seasonal decline in produ ctio n
of autom obiles d u rin g Ju ly w as confirm ed by
figures rep resen tin g about 90 per cent of th e
in d u stry com piled by th e F ederal R eserve
B ank a t Chicago. O u tp u t of p assen g er cars
decreased 11.8 per cent and of tru c k s 25.6 per
cent d u rin g Ju ly as com pared w ith June. P re ­
lim inary figures for A u g u st show an increase
over Ju ly of 8.5 per cent in the n um ber of p as­
senger cars and of 1.0 per cent in th e num ber
of tru ck s produced.
T o tal production for
A u g u st w as approxim ately 20 per cent g re ater

141

FEDERAL RESERVE AGENT AT SAN FRANCISCO

th an for th e sam e m onth of 1922. T h e figures
fo llo w :
Aug 1923* JuJy 1923* Aug 1922
P assen ger C a r s ........... 296,753
T rucks ............................ 28,780
T otal ........................... 325,533

274,638
28,502
303,140

248,044
24,093
272,137

of building m aterials stood a t 186 in A ugust.
T his is 2.1 per cent less th an one m onth ago,
8.1 per cent higher th an one year ago, and 8.8
per cent below th e recent peak of A pril, 1923.

^ P relim in ary figures.

Savings Accounts

B uild in g Activity

T h e am ount of all savings deposits in 75
banks in seven principal cities of th e d istrict
increased from $936,123,000 on Ju ly 31, 1923,
to $936,938,000 on A u g u st 31, 1923, a gain of
0.08 per cent. T w o cities, San F rancisco and
Seattle, reported decreases during th e m onth,

C ontinuance of p resen t building activ ity is
forecasted by the record of building perm its
issued in the d istrict d u rin g A ugust. R evers­
in g the dow nw ard tren d w hich has persisted,
w ith seasonal checks, since last M arch, th e p ast
m onth w itnessed th e au th o rizatio n of a g re ater MILLIONS
am ount of building th an in any previous m onth 1000
of w hich there is record. T h e value of perm its

OF DOLLARS
to ta l

500
400

40

300

36

200

32

H

28

100

24

OAKLAND

Ar- O U N T (IF PERN
ILLION5 OF DO

20
r6

50
40

12

30

8

20

MBER 0 F PERM T S IN
THO JSA N D S

SP O K A NE

4
Q 1I

1 . 1.

1__ |___ULi__ I

1922

i l l __ t i l l

LT L A K E C ITY

i

ill

I___L_i_i___1___Li—I___I___L

1923

Building Permits Issued in 20 Principal Cities, Twelfth Federal
Reserve District, 1922*1923

issued d u rin g A u g u st exceeded the previous
record m onth of M arch, 1923, by 0.6 per cent,
and th e num ber of perm its issued w as 1.4 per
cent less th an the num ber issued in th a t m onth.
A s com pared w ith July, 1923, th e num ber of
perm its issued d u rin g A u g u st, 1923, show ed an
increase of 20.4 per cent, w ith an increase in
value of 26.6 per cent.
Percentage Increase in the Num ber and Value of
Building Permits issued in 20 Cities
A ug., 1923. compared with
A ug.. 1922
July, 1923

N um ber of Perm its Issu e d .............. 13.6%
Value of P erm its Issu e d .................. 37.4%

20.4%
26.6%

T h e relatively g re a te r increase in th e value
of co n struction authorized th a n in th e num ber
of perm its issued, as com pared w ith one y ear
ago, indicates, in addition to th e actual increase
in th e physical volum e of construction, th a t
new construction th is y ear is increasingly ta k ­
ing th e form of factories, office buildings, a p a rt­
m en t houses, etc., buildings w hose individual
value is relatively high. T h e U nited S tates
D e p artm en t of L abor index num ber of the cost




1922

1923

Savings Accounts in Banks in Seven Principal Cities of the
Twelfth Federal Reserve District. 1922-1923

(B ) B u il d in g P e r m its —
August, 1923
No.
Value

B erkeley .......
L on g B e a c h ...
L os A n g e le s..
Oakland .........
O gden ............
Pasadena . . . .
P h o e n ix ..........
Portland ........
Sacram ento ..
Salt Lake City
San D ie g o .. . .
San F rancisco
San J o s e . . . . .
S e a t t le .............
Spokane .........
Stockton .......
T acom a ..........

229
61
142
404
5,932
1,120
30
381
51
1,443
19
339
96
421
787
94
854
218
117
439

D i s t r i c t ___ 13,177

$

August, 1922
No.
Value

620,435
67,529
286,413
1,566,817
22,249,262
2,118,416
67,200
765,629
68,805
2,818,355
56,908
2,514,560
559,730
651,598
3,915,300
187,885
1,281,130
199,146
251,375
223,416

229
85
176
287
4,294
852
65
337
43
1,644
26
264
142
386
690
72
1,006
333
151
514

$40,469,909

11,596

$

556,300
112,524
407,398
856,988
11,523,891
1,681,201
167,600
925,358
109,985
1,941,380
46,500
868,046
421,075
1,082,216
6,214,082
187,586
1,200,740
391,136
385,100
369,027

$29,448,133

142

M O NTHLY REVIEW OF BUSINESS CONDITIONS

th a t of San F rancisco, how ever, being less th an
on e-ten th of 1 per cent. C om pared w ith A ugust,
1922, the d istrict figures for A ugust, 1923, show
an increase of 16.0 per cent. Los A ngeles and
S eattle continue to re p o rt th e larg est percent­
age increases for the year period, am o u n tin g to
23 p er cent for th e form er city and 20 per cent
for the latter. D etailed changes in the am ount
of savings deposits since one m onth ago an$
one y ear ago as reported by 75 banks in seven
cities follow :
PerCent
Num ber of
Reporting
Banks

L os A n g e le s...........
Oakland* ...............
P ortland ................
Salt Lake C it y .. . .
San F r a n c is c o ....
S eattle ....................
Spokane .................

.

13
7
9
8
16
16
6

T o t a l ................... .......... 75

men in m any sections of th e district. C om ­
pared w ith A ugust, 1922, bank debits for
A ugust, 1923, show an increase of 15.6 per cent,
the sm allest increase over th e corresponding
m onth a year ago rep o rted since D ecem ber,
1922. As noted in previous review s, this inM 1LLIONS OF DOLLARS

Increase or Decrease (— )
A ug., 1923. compared
with
A ug.. 1922
July, 1923

23.2
15.9
16.9
12.5
10.3
20.3
13.2

.2
.4
.06
.9
— .09
— .4
.7

16.0

.08

* In clu d es one bank in B erkeley w hich was fo rm erly a branch of
an O akland bank.

Bank D ebits
F ig u res of debits to individual accounts a t
banks in21 clearing house centers d u rin g A ugust,
1923, show a decline as com pared w ith July,
1923, w hich w as slightly in excess of th e n o r­
m al seasonal m ovem ent. T h is is th e second
consecutive m onth d u rin g w hich such a de­
cline has occurred and, m aking allow ance for
seasonal variations, debits to individual ac­
counts w ere less d u rin g A u g u st th a n during
any previous m onth this year, reflecting the
caution a t p re sen t prevailing am ong business
(C) Bank Debits *—
Four weeks
ending
A ug. 29. 1923

B e r k e le y .........................................$14,702
$
B oise ...............................................
10,291
F resno ............................................
45,444
L o n g B ea ch ..................................
55,216
L os A n g e le s ..................................
595,651
Oakland ........................................
99,495
O gden ............................................
22,554
Pasadena ......................................
24,947
P h oen ix .........................................
15,232
P o r t la n d .........................................
137,044
R eno ...............................................
8,751
Sacram ento .................................
33,997
Salt Lake C ity ..............................
50,500
San D ie g o ......................................
37,567
San F ra n cisc o ..............................
649,108
San J o s e ..........................................
19,217
Seattle ............................................
149,929
Spokane .........................................
42,825
Stockton ........................................
21,985
Tacom a ..........................................
33,698
Y a k im a ...........................................
7,548
T otal ...........................................$2,075,701
*000 omitted.




Four weeks
ending
A ug. 30.1922

13,369
9,954
36,542
31,705
431,387
78,080
16,603
20,155
12,794
124,962
8,911
58,731
50,442
31,914
612,503
20,666
137,504
36,695
19,119
34,028
8,038
$1,794,102

Debits to Individual Accounts in 20 Principal Cities, Tw elfth Federal
Reserve District. 1922-1923

crease, accom panied as it has been by a slig h t
decline in com m odity prices over th e y ea r p e r­
iod, indicates a g re a te r degree of activ ity now
th an in 1922, even after allow ance is m ade for
the norm al g ro w th and developm ent of the
district.
C onsidered geographically, bank debits for
A ugust, 1923, increased, as com pared w ith
A ugust, 1922, in 16 of th e re p o rtin g cities, the
exceptions being Reno, San Jose, T acom a, and
Y akim a. T h e figures for S acram ento, w hich
show a decline of 42.1 per cent for th e y ear
period, m u st again be disregarded. A s w as
explained in the A u g u st num ber of th e R eview ,
one of th e larg est banks in th a t city has
changed its m ethod of re p o rtin g bank debits,
and th u s tem p o rarily destroyed th e value, for
com parative purposes, of th e figures of th a t
city.
Business Failures
B usiness failures in th is d istrict d u rin g
A ugust, 1923, num bered 155, an increase of 9.1
per cent over the num ber of failures for Ju ly ,
1923. L iabilities involved, how ever, declined
7.4 per cent, as com pared w ith the previous
m onth, and w ere well below th e figures re ­
ported in each m onth of th e p a st tw o y ears
excepting June, 1923. C om pared w ith A ugust,
1922, the num ber and liabilities of business
failures durin g A ugust, 1923, declined 15.3 per
cent and 18.6 per cent, respectively. T h e aver-

143

FEDERAL RESERVE AGENT AT SAN FRANCISCO

age liabilities of business failures in this dis­
tric t d u rin g A ugust, 1923, am ounted to $11,379,
com pared w ith $13,415 in July, 1923, and $11,
844 in A u gust, 1922.
NO. OF FAILU R ES

LIA BILITIES IN M ILLIONS

10
8

250
A NO.
i ’

OF ■ A ILU R E s A
*
0
%
' ~ y ' i #/»*

V
\ A
V]

y

i

1 --1 - i

V

\*

A

\

r*»

\ / '
w
*

'

V
L IA B

i

i

1

1

1

1.. _J__ L. 1

1

M IL L IO N S OF D O LLARS

150
100

sK

il it ie s

200

A

w hich began in Jan u a ry oi this year, b u t w hich
w as in terru p ted d u rin g the four w eeks ended
A u g ust 15th, has continued. T o tal discounts
on Septem ber 5th w ere $91,0" ,000, the largest
figure reported since N ovem ber 2, 1921, $58,000,000 g re ater th an on Jan u ary 10, 1923, and
m ore th an half as large as the peak figure of

% ^
1

1 .1 .1

1922

50

—
1

1

I ..1

1923

Business Failures, Twelfth Federal Reserve District, 1922*1923

R.G. D un and C om pany’s figures of the num ­
ber and liabilities of business failures in the
states of th is d istrict d u ring A ugust, 1923, and
July, 1923, follow :
August, 1923
No.
Liabilities

2
62
4
2
25
14
46

133,833
685,078
25,739
17,897
135,043
233,119
533,073

D is t r ic t ............. 155

$1,763,782

A rizona ................
California ............
Idaho ....................
N evada .................
O r e g o n .................
U tah .......................
W ashington ........

No.

July, 1923
Liabilities

2 £

27

84,500
1,074,872
122,071
3,800
217,914
128,112
273,664

142

$1,904,933

77
5

1
22
8

100

1922

1923

B anking and Credit Situation

Total Deposits, Loans and Discounts, Investments, and Bills Payable
and Rediscounts of Reporting Member Banks

T o tal loans of 66 re p o rtin g m em ber banks in
th e principal cities of th e d istrict decreased
$3,000,000 d u rin g the four w eeks ended Sep­
tem b er 5th, stan d in g at $992,000,000 on th a t
d ate as com pared w ith $873,500,000 one year
ago. T h is decrease in loans d u rin g recent
w eeks, w hich m ay be com pared w ith a gain of
$16,000,000 d u rin g th e previous four w eeks
period, is the first decline w hich has occurred
d u rin g any four w eek period of the present
year. T h a t it w as n o t due to any usual
seasonal influence is suggested by the fact th a t
d u rin g A u g u st in previous years loans have
increased. In v estm en ts of re p o rtin g banks de­
clined $3,000,000 d uring th e four w eeks ended
S eptem ber 5th, continuing th e dow nw ard
m ovem ent w hich began in th e m iddle of May.
T o tal deposits on S eptem ber 5th w ere $1,000,000 larg e r th an on A u g u st 8th, b u t $10,000,000
less th an on Ju ly 11th. A significant feature
of the ban king situ atio n in th is d istrict during
recent m onths has been th a t deposits of the
rep o rtin g m em ber banks, w hich had been
steadily increasing since early in F ebruary,
1922, ceased to rise in M ay of th is year, and
since th a t tim e have been fluctuating w ith a
dow nw ard trend.
T h e u pw ard m ovem ent of to tal discounts of
th e F ederal R eserve B ank of San Francisco

$176,000,000 reported on D ecem ber 10, 1920.
D u rin g th e w eek ended Septem ber 12, 1923,
th ere w as a slight decline in total discounts to
$89,000,000. T h e n et increase of $16,000,000
d u rin g the four w eeks ended Septem ber 12th
w as due principally to increased borrow ing by
m em ber banks in San F rancisco, and the in ­
crease of $46,000,000 in to tal discounts of th e
R eserve bank d u rin g the p ast year has been
due chiefly, although no t entirely, to increased
borrow ing by m em ber banks at the sam e city.
In v estm en ts of th e R eserve bank declined
$3,000,000 d u rin g the four w eeks ended Sep­
tem ber 12th and at $21,000,000 on th a t date
w ere $66,000,000 less th a n on J a n u a ry 10, 1923.
F ederal R eserve notes in circulation in­
creased $8,000,000 d u rin g the four w eeks ended
Septem ber 12th and a t $219,000,000 on th a t
date w ere $22,000,000 g re ater th an on A pril
25th, w hen th ey began to increase from th e
sm allest am o u n t reported in recent years.
T he h ardening of in tere st rates at N ew Y ork,
w hich w as noticeable d u rin g the first 10 days
of A ugust, and w hich is a norm al seasonal oc­
currence at this season, continued th ro u g h o u t
th a t m onth and th e first half of Septem ber, th e
rate on tim e m oney advancing from 5% to 5^2
per cent, and an increasing proportion of prim e
com m ercial paper being sold for 5 J/ 2 per cent




144

M O NTHLY REVIEW OF BUSINESS CONDITIONS

as ag ain st th e ra te of 5% per cent w hich p re­
vailed up to th e m iddle of A ugust. T h e average
ra te charged by large San F rancisco banks on
loans to custom er borrow ers continued during
A u g u st a t Sy2 per cent, although a tendency
for th e ra te on 4-6 m onths paper to advance to
6 p er cent w as apparent.

O n S eptem ber 10, 1923, th e T re a su ry D e­
p a rtm e n t announced an offering of T re a su ry
C ertificates of Indebtedness, designated as
Series TM 2-1924, dated S eptem ber 15, 1923,
and m atu rin g M arch 15, 1924. T h e notes b ear
in tere st a t th e ra te of 4^4 per cent p er annum ,
w hich is an increase of o n e-q u arter of 1 per
cent over th e last issue of six m onths T re a su ry
C ertificates issued in June, 1923. T o tal su b ­
scriptions received in th e co u n try as a w hole
am ounted to $553,678,500 of w hich $249,750,500
w ere allotted. In th is d istric t to ta l su b scrip ­
tions am ounted to $49,154,000 of w hich $18,638,000 w ere allotted.
T h e acceptance m ark et in th is d istric t d u rin g
recent w eeks has been quiet. R ep o rts received
by this bank from 35 of th e principal accep tin g
banks of th e d istrict show th e follow ing
changes in th e am o u n t of bills purchased and
accepted d u rin g A ugust, 1923, com pared w ith
July, 1923, and A ugust, 1922:
August, 1923, compared with
July, 1923
A ug., 1922

Total Reserves. Federal Reserve Note Circulation. Bills Discounted,
and Investments, Federal Reserve Bank of San Francisco

A m ount of bills accepted . . . . — 13.0%
A m ount of bills bought .......... +17.9%
A m ount o f bills held at close of
m o n t h .......................................
+13.0%

— 7.4%
— 50.7%
— 51.8%

PRINCIPAL RESOURCE AND LIABILITY ITEMS OF REPORTING MEMBER BANKS IN RESERVE
CITIES IN TWELFTH FEDERAL RESERVE DISTRICT
September 5, 1923

Number o f Reporting Banks .............................................................

66*

Loans and D iscou n ts (including r ed isco u n ts)...................................... $ 992,315,000
I n v e s tm e n ts ........................................................................................................
346,191,000
Cash in V ault and w ith Federal R eserve B an k ....................................
122,111,000
T otal D e p o sits.................................................................................................... 1,276,789,000
B ills Payable and R ediscounts with Federal Reserve B an k ...........
61,638,000

August 8, 1923

September 6,1922

66*

68*

$ 995,684,000
349,073,000
118,108,000
1,275,900,000
45,293,000

$ 873,517,000
333,627,000
101,831,000
1,196,793,000
13,025,000

*Du6 to changes in th e com position of the list of rep o rtin g banks, c u rre n t figures are not exactly com parable w ith those o f a y ear ago.

COMPARATIVE STATEMENT OF CONDITION OF FEDERAL RESERVE BANK OF SAN
AT CLOSE OF BUSINESS, SEPTEMBER 12, 1923

FRANCISCO

RESO UR CES
August 15. 1923

September 13. 1922

T otal R e serv es................................................................................................... $277,464,000
B ills D isco u n ted ............................................................................................... 89,440,000
B ills B ou gh t in O pen M a r k e t.................................................................. 12,012,000
U n ited S tates G overnm ent S ecu rities.....................................................
9,185,000

September 12.1923

$277,821,000
73,440,000
14,895,000
9,185,000

$242,000,000
43,352,000
33,831,000
52,977,000

T otal E arning A s s e ts ..................................................................................... $110,637,000
A ll O ther R esou rces*..................................................................................... 61,175,000

$ 97,520,000
56,692,000

$130,160,000
55,671,000

Total Resources.............................................................................................$449,276,000

$432,033,000

$427,831,000

Capital and S u rp lu s......................................................................................... $ 23,034,000
T o ta l D e p o s it s ................................................................................................... 160,003,000
Federal R eserve N o te s in A ctual C irculation...................................... 218,676,000
A ll O ther L ia b ilitie sf..................................................................................... 47,563,000

$ 22,992,000
154,628,000
210,860,000
43,553,000

$ 22,811,000
138,866,000
221,327,000
44,827,000

Total Liabilities.............................................................................................$449,276,000

$432,033,000

$427,831,000

42,746,000
41,690,000

48,612,000
41,080,000

L IA B IL IT IE S

^Includes “U n collected Item s” ..................................................................
fln c lu d e s “D eferred A vailability Item s” ...............................................




47,719,000
45,554,000