The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY REVIEW
OF
B U S IN E S S
C O N D IT IO N S
ISAAC B. NEWTON, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco
Vol. X
San Francisco, California, September 20,1926
No. 9
S U M M A R Y O F N A T IO N A L C O N D IT IO N S
Industrial activity and distribution of com
modities were in large volume in August and
were at higher levels than a year ago. The gen
eral level of wholesale prices receded further in
August, reflecting price declines for agricul
tural commodities.
Production. The index of production in basic
industries, which is adjusted for the usual sea
sonal variation, declined slightly in August, but
this decline was accounted for by the fact that
there were five Sundays in that month as
against four in July. Textile mill activity and
production of steel ingots, zinc and petroleum
increased, while the output of pig iron, lumber,
coal, copper, cement and sugar was smaller than
during the previous month. Autom obile pro
duction increased considerably in August and
was larger than in any month since April. Fac
tory employment and payrolls, after declining
in July, increased in August, as is usual at this
season of the year. Building activity, as meas
ured by contract awards in thirty-seven states
east of the R ocky Mountains, was in larger
volume in August than in July or in any other
previous month, with the exception of August,
1925. In Eastern and Southeastern States the
volume of building was smaller in August than
a year ago, while in the Middle W est contracts
awarded were larger. Contracts for residential
structures were smaller than last year, while
those for industrial buildings, public works and
public utilities were substantially larger.
Crop conditions improved in August, accord
ing to a statement by the Department of A gri
culture. September forecasts of yields of corn,
barley, hay, tobacco, and most fruit and vege
table crops were above those made in August,
while expected yields of oats and spring wheat
were slightly less. A cotton crop of 15,810,000
bales was indicated on the basis of the condi
tion of the crop at the middle of September. The
crop, however, is later than last year and ginnings up to September 16th amounted to only
2,511,000 bales compared with 4,282,000 bales
prior to September 16, 1925.
Trade. Volum e of wholesale trade and of
sales at department stores increased in August,
and retail sales were larger than a year ago.
Stocks of dry goods and shoes carried by whole
sale firms were smaller at the end of August
than one year ago, while those of groceries and
hardware were larger. Inventories of depart
ment stores increased in preparation for volume
trade, but this increase was less than is usual
at this season, and at the end of the month
stocks were smaller than a year ago. Freight
PER CENT
19 22
1923
1924
1925
19 26
P R O D U C T IO N IN B A S IC IN D U S T R IE S
W H O L E S A L E PR ICE S
Index of 22 basic commodities corrected for seasonal variation
(1919=100). Latest figure, August, 116.
Index of U . S. Bureau of Labor Statistics (1913 = 100, base adopted
by Bureau). Latest figure, August, 149.2.
66
Septem ber, 1926
MONTHLY REVIEW OF BUSINESS CONDITIONS
car loadings in August continued higher than
in the corresponding months of previous years,
and for the weeks of August 28th and Septem
ber 4th exceeded all previous weekly records.
Loadings of grain continued large, and ship
ments of merchandise in less than car load lots,
miscellaneous commodities, ore and coke were
considerably larger than in the corresponding
period of previous years.
PER CENT
BILLIONS OF DOLLARS
«
cy
ROLILS
/ \ A
"V i ^
~ r S
1922
marketing of crops and Autumn trade, together
with an increase in loans on securities, was re
flected in a considerable growth, between the
middle of August and the middle of September,
in loans of member banks in leading cities. The
banks' holdings of investments also increased,
though there was a decrease in investments at
banks in New York City, and total loans and
investments on September 15th were larger
E: m plo ym en 'T
1923
1924
1925
1926
F A C T O R Y EM P LO YM E N T A N D PAYROLLS
Federal Reserve Board’ s indexes of factory employment and payrolls
(1919 = 100). Latest figures, August, employment, 94.4;
payrolls, 107.7.
Prices. W holesale com m odity prices, accord
ing to the index of the Bureau of Labor Statis
tics, declined by over one per cent in August,
reflecting largely price decreases for grains, live
stock and meat products. Prices of clothing
materials, fuel and metals increased during
August, while prices of cotton, wool, sugar,
building materials and rubber showed little
change. In the first half of September, prices
of grains, cattle, sugar, bituminous coal and
coke advanced, while prices of raw cotton,
silver and bricks declined.
Bank Credit. Increased demand for bank
credit in connection with the harvesting and
R ESE R VE B A N K C R E D IT
Monthly averages of daily figures for 12 Federal Reserve Banks.
Latest figures are averages of first 23 days in September.
than at any previous time. The volume of re
serve bank credit increased by about $90,000,000 between August 18th and September 22nd,
partly in response to seasonal demands for
currency. Discounts for member banks rose in
September to the highest figure for the year
and acceptance holdings also increased, while
holdings of United States securities declined
by about $55,000,000. M oney rates continued to
rise during the first three weeks of September.
Rates on commercial paper advanced by onefourth of one per cent to 4 ^ -4 % per cent. Rates
on security loans also averaged higher than in
August.
T W E L F T H F E D E R A L R E S E R V E D IS T R IC T C O N D IT IO N S
Statistical Sum m ary —
A i 926St*
1926*
A i 925St'
1925*
August, 192611
compared with
A u g.,
July.
1925
1926
Bank Debits— 21 cities*............................ $2,865,710 $3,147,750 $2,693,729 $2,766,952
6.4 — 9.0
Bank Debits— Index Numbersf— 20 cities.......
166
1680
1500
147
10.7 — 1.2
Building Permits— 20 cities ....................... $29,025,541 $31,671,181 $35,482,926 $33,155,732 — 18.2 — 8.4
Retail Sales— 32 stores— Index Numbersf.....
158
157
148
150
6.8
0.6
7.2 — 0.1
Savings Deposits— 69 banks*§ ................... $1,203,457 $1,204,508 $1,122,5070 $1,118,5490
15.2
9.2
Lumber Production— 4 associations— board feet*
826,845
756,966
717,588
681,238
Petroleum Production^— California— barrels .. .
605,325
604,619
677,599
658,421 — 10.7
0.1
13.1 — 7.4
Flour Production— 16 companies— barrels.....
420,516
454,175
371,882
275,634
Reporting Member Bank Loans and Discounts*|| $1,218,658 $1,200,933 $1,137,922 $1,112,409
7.1
1.5
Reporting Member Bank Deposits*!!............ $1,654,922 $1,630,982 $1,580,341 $1,554,544
4.7
1.5
5.6
14.8
Federal Reserve Bank Discounts*!!...............
$50,848
$44,292
$48,172
$41,802
Federal Reserve Bank Reserve Ratio||...........
70.2
71.8
72.3
74.7 — 2.9 — 2.2
*In thousands. fAdjusted for seasonal variations— 1919 monthly average=100. JDaily average production. §Not comparable with
figures published in previous Reviews. ||September 15 and August 11, 1926, and September 16 and August 12, 1925. flPercentage
increase or decrease (— ). QRevised.
Septem ber, 1926
FEDERAL RESERVE AGENT AT SAN FRANCISCO
Agricultural Activities
W eather conditions generally have been fa
vorable during the present crop m oving season.
The peak of grain and early deciduous fruit
harvesting has now been passed and harvesting
of field crops and grapes, which, particularly in
California, have ripened earlier than usual, is
progressing rapidly. Current harvesting returns
indicate crop yields generally in excess of those
anticipated earlier in the grow ing season, an
important exception being grapes in California,
which are reported to be returning slightly
smaller yields than were forecasted in pre
harvest estimates.
P R O D U C T IO N O F C A L I F O R N I A H O R T I C U L T U R A L C R O P S
(Except Apples)
Five-Year
Forecast
Actual
Average
Sept. 1,1926
1925
(1919-1923)
(tons)
(tons)
(tons)
14,000
7,500
7,650
Alm onds ...............................
160,000§
150,000
148,000
Apricots ...............................
Cherries ...............................
17,000§
11,000
14,800
Figs ........................................
9,120
9,500
10,880
Grapes ...................................
2,108,000
1,955,000
... ■
W ine ..................................
408,000
395,000
392,600
Table
..........................
414,000
424,000*
270,000
Raisin ...............................
1,286,000
1,136,000*
Olives .....................................
11,200
14,000
10,400
Peaches....................................
473,000
390,000
378,000
Pears .......................................
219,500
181,000
117,200
Plums ....................................
72,000
51,000
47,200
Prunes ...................................
145,000
145,000
114,500
W alnu ts ................................
20,000
30,500
24,120
Oranges ................................ 2 2,100,000f
2 0,800,000f
19,025,0001
5 ,800,000t
6,000,000t
4,527,0001Lem ons ..................................
Apples— Commercial Crop
Twelfth D istrict?.......... 45,447,000t
37,989,0 00f
34,435,000+
United States ...............126,153,000f
95,727,000t
88,721,OOOt
67
district yield of sugar beets, however, indicate
that the 1926 output will be less than half that
of 1925. Picking of cotton has commenced in
Arizona and California, and yields generally
indicate a crop slightly smaller than was har
vested in 1925 (229,000 bales). In California,
rice fields are being drained and harvesting of
rice has commenced. The acreage to be harvested
this year (150,000 acres) is 31.3 per cent larger
than was harvested in 1925, and estimated pro
duction (8,118,000 bushels, or 3,653,100 bags of
100 pounds each) is nearly double that of last
year. Storage holdings of 1925 crop rice are
reported to be small in amount.
P R O D U C T IO N — P R I N C I P A L G R A I N A N D F I E L D C R O PS*
Twelfth Federal Reserve District and United States
Preliminary
Estimate
Forecast
Five-Year
September 1, August 1,
Actual
Average
1926
1926
1925
(1919-1923)
W h ea t (bushels)
Twelfth D istrict. . . 100,843
103,062
100,227
115,641
United States. . . . . 838,591
839,201
666,437
852,176
Barley (bushels)
iT w elfth D istrict. . .
39,492
39,433
44,364
39,395
U nited States. . . . . 195,204
191,088
217,497
173,576
Rice (b u s h e ls )#
§Tw elfth D istrict.
8,118
8,370
4,738
7,363
United S t a t e s ...,. . 39,267
40,500
34,300
40,856
Beans (bushels)
||Twelfth D istrict.
5,829
6,219
6,154
5,147
United States. , . . .
17,253
19,100
19,500
12,068
Cotton (bales)
Tw elfth District.
216
229
123
United States. . . . .
15,166
15,62 i
16,104
10,543
Potatoes (bushels)
Tw elfth D istrict. ,. .
39,718
39,530
35,760
37,0820
United States. . . , 351,557
345,569
325,902
388,497
Sugar Beets (tons)
HTwelfth D istrict.
826
945
2,010
2,144
United States. . .
6,525
6,654
6,652
7,423
H ops (pounds)
Tw elfth D istrict. . .
26,984
25,631
28,500
26,733
* I t is estimated that about 100,000 tons of table and 38,000 tons
of raisin grapes, not harvested, are included in the above
estimates. fB o x es. {California, Idaho, Oregon, and W a s h
ington. §A s of A u gust 1, 1926.
*000
Enforcement of spray residue regulations of
the United States Department of Agriculture,
Bureau of Chemistry, affecting all fruits enter
ing into interstate commerce, has this season
presented new problems to growers and ship
pers of fruits, particularly pears and apples.
These regulations have necessitated special
wiping of the fruit, thereby adding to costs of
production, but the situation is now being met
satisfactorily, with due regard for the public
health interests involved.
Satisfactory yields of most field crops have
been obtained this year and prices generally
have been well maintained. Estimates of the
W ith the completion of the harvest, wheat
and other grain crops have been m oving to
market more rapidly than was the case last
year. Export shipments of wheat from the Pa
cific Northwest have been large in volume, and
domestic demand has been active. The 1926
barley crop in California was slightly smaller
in volume than the 1925 barley crop in that
state. Both domestic and foreign markets for
barley have continued sluggish during the past
month. Agricultural marketing data are pre
sented in Table “ A .”
Seasonal rainfall during the first weeks of
September improved the condition of ranges in
omitted. fD o e s not include Arizona. ÎD o es :not include
Arizona and W ashington. §California. |jCalifornia and Idaho.
tICalifornia, Idaho, and Utah. # O n e bushel of paddy rice
weighs 45 pounds. ORevised.
(A ) A gricultural M arketing A ctivity ~~
t--------- E x p orts------------- ----------------Car Jot Shipments-------------- Livestock Receipts Cdd Storage Holdings!
Wheat*
Barley* Apples* Deciat Eight Markets in 12th District
12th District
Portland and
San
12th
duous Orangest Lemonsf
Cattle
Buiter Eggs
Puget Sound Francisco Dist.
Fruits ! Calif.
Calif.
and
(1000
(lOoO
Monthly
(in n n b u .)
O o o o h u .)
fe a rs)
fea rs)
(c a rs)
(c a rs)
Calves
Hogs
Sheep
lb s . )
August, 1926....................................
3,618
1,575
1,262 10,685
3,313
1,367
112,795
144,884
393,498
7,438
516
July,
1926....................................
1,675
1,3150
1,650
9,151
4,627
1,914
89,486
139,858
310,820
7,754
A ugust, 5-year a v e r a g e ............
2,461
2,187
926
7,578
2,501
826
90,713§
129,225§
275,136§
6,271fî 542ÏÏ
(1919-1923)
Cumulative
r---------------------------------Crop Y e a r ----------------------------------- >
/------------- Calendar Year --------------- ^
T o Au gust 31, 1 926...................
5,293
2,890
2,912 25,029 43,930
12,216
806,387
1,321,564
2,193,404
(5 .3 )
(7 .3 )
(3 .4 )
(86.1)
(81.4)
T o Au gust 31, 1925....................
4910
4,5410
1,084
19,814 34,938
10,333
807,617
1,545,073
2,070,209
(0 .7 )
(1 9 .9 )
(2 .5 )
(7 2 .8 )
(89.9)
5-year average to Au gust 31st.
4,027
3,458
1,586 15,240 38,323
9,344
701,689§ 1,319,405§ 1,940,746§
(1 9 19-1923)
(3 .5 )
(8 .6 )
(3 .1 )
(8 0 .9 )
(82.6)
Figures in parentheses indicate percentage of new crop only. *Season begins July 1st. fSeason begins November 1st. $At end of
month. §1921-1925. ||California, excluding apples. Season begins April 1st. 111922-1926. ORevised.
c a se s )
542
68
MONTHLY REVIEW OF BUSINESS CONDITIONS
most sections of the district, and livestock gen
erally are in satisfactory condition. A ccording
to the United States Department of A gricul
ture, the number of range cattle available for
marketing in the United States continues to
decline, reflecting the heavy sales during 1925
and 1926 to date.
Industrial Activity
Productive activity in the district as a whole
increased seasonally during August and in
most industries was above the level of a year
ago. Available evidence, both non-statistical
and statistical, indicates that total volume of
employment was seasonally greater during A u
gust, 1926, than during July, 1926, and was
slightly greater during the later month than in
August, 1925. Detailed employment data of
reporting industrial plants in California and
O regon are shown in Table “ C.”
Building continued active at high levels dur
ing August. Value of building permits issued
in 20 principal cities of the district again de
clined, however, both as compared with the
previous month and with the same month a
year ago. A decrease of 8.4 per cent in the
value of permits issued during August as com
pared with July, 1926, compares with an aver
age increase of 14.4 per cent from July to A u
gust during the past seven years, 1919-1925,
inclusive. In comparison with August, 1925,
there was a decrease of 12.3 per cent in the
number of permits and 18.2 per cent in the esti
mated cost of construction involved. The cu
mulative figures of permits issued during the
year-to-date show a decline of 12.1 per cent in
number and 13.5 per cent in value for 1926 as
compared with 1925. Detailed figures by cities
are shown in Table “ B.”
The United States Bureau of Labor Statis
tics’ index number of wholesale building ma
terials prices increased slightly from 171.5 in
July to 171.8 in August (1913 prices = 100). It
stood at 172.4 in August, 1925. The Aberthaw
index of total cost of building a reinforced con(B ) B uilding P erm its■
B erkeley .................
Boise ........................
Fresno .....................
L o n g B e a c h ..........
L os A n g e l e s .......... .
Oakland ...................
O gden ......................
Pasadena ...............
Phoenix .................
Portland ................. . .
R eno ........................
Sacramento ............
Salt Lake C i t y . ..
San D iego ............
San Francisco . . .
San Jose ...............
Seattle ..................... . .
Spokane ...................
Stockton .................
Tacom a ....................
D istrict
...............
August, 1926
N o.
Value
305
$
586,206
54
38,975
60
89,305
459,166
282
2,906
8,826,108
985
2,665,900
37
208,100
917,792
232
222,162
106
1,325
3,169,865
27
109,050
217
662,286
93
741,595
749
1,384,439
862
4,163,510
139
355,825
2,784,660
1,026
219
452,345
76
594,150
355
594,102
$29,025,541
August, 1925
N o.
Value
$
929,956
458
65
42,675
137,330
96
6,026,029
341
3,493
10,221,257
3,246,419
1,238
22
101,550
230
676,426
119
178,792
1,377
3,544,110
133,889
18
266
655,454
539.190
143
704
1,254,099
939
3,840,076
109
221,615
1,111
2,083,895
245
533,944
94
220,360
398
895,860
11,466
$35,482,926
Septem ber, 1926
crete factory building, including labor and ma
terials, stood on September 1st at 197 (1914 =
100), compared with 198 one month ago and
194 one year ago.
Activity in the lumber industry of the dis
trict was greater during August than in July
and continued at higher levels than a year ago.
Lumber production of mills reporting to four as
sociations exceeded shipments and new orders
received by 3.2 per cent and 9.1 per cent, respec
tively, during August, and was 9.2 per cent larger
than production during July. The volume of
new orders received during August was less
than shipments, and unfilled orders at the close
of the month were less than at its beginning:.
o
o
LU M B ER A C T IV IT Y *
Aug.,
July,
Aug.,
1926
1926
1925
First Eight Months—■»
1926
1925
(board feet) (board feet) (board feet) (board feet)
Production . . . .
Shipments -----Orders ...............
Unfilled O rdersf
N o . of M ills
R eporting? . .
826,845
801,024
757,952
545,068
756,966
741,408
772,849
586,442
184 177
717,588
678,035
688,786
497,824
(board feet)
5,852,862
5,858,709
5,884,684
...
5,227,170
5,268,521
5,248,204
182
179
173
* A s reported by four associations, 000 omitted except in case of
number of mills reporting, tReported by three associations.
The figures are not strictly comparable with other figures
appearing in the table. $Average.
S ou rce: National Lum ber Manufacturers Association.
Gasolene production at California refineries
totaled 4,203.431 barrels during August, 1926,
an increase of 7.8 per cent over July, 1926, and
an increase of 14.39 per cent over the output
of August, 1925. Stocks of gasolene, at 9,554,687 barrels on August 31, 1926, showed a de
crease of 177,286 barrels since the end of July,
1926, and w^ere 5.3 per cent larger than one
year ago.
G A S O L E N E — California
Aug., 1926
July, 1926
A u g., 1925
(barrels)
Refinery O utput . 4,203,431
Stored Stocks* . . 9,554,687
July, 1925
(barrels)
(barrels)
(barrels)
3,899,264
9,731,973
3,674,599
9,077,569
3,464,653
t
*E n d of month. tCom parable figures not available.
Source : U nited States Bureau of M ines.
(C) E m ploym ent—
-Californi a---------\ r
Oregon- ~
—N
N o. of
N o . of
N o. /— Employees —>
N o.
Employees —'*
of
Aug.,
July,
of
A u g.,
July,
Firms 1926
1926
Firms 1926
Industries
1926
A ll Industries.......... 699 163.584 158,356
90
18,257
17,584
(3.3)
(3.8)
Stone, Clay and
Glass Products.
45
7,828
7,831
5
219
224
(0 .0 )
(— 2.2)
Lum ber and W o o d
13,605
M anufactures . . 109 29,038 28,400
36
13,713
(2 .2 )
(— 0.8)
18
2,573
2,618
3
302
281
(— 1.7)
(7 .5 )
C lothing, M illinery
and Laundering. 60
6,955
6,834
8
550
536
(1 .8 )
(2 .6 )
F ood, Beverages
and T o b a c c o .. . 141 38,379 34,782
29
2,988
2,257
(10.3)
(3 2 .4 )
W a ter, Ligh t and
Power ...................
5
8,905
9,174
(— 2.9)
O ther Industries*. 307 67,588 66,500
(1 .6 )
M iscellaneous . . . .
2 ,2 1 7
14
2,318
9
593
573
(4 .6 )
(3 .5 )
(
*Includes the follow ing industries: m etals, m achinery and con
vey a n ces; ^ leather and rubber g o o d s ; chemicals, oils and
p a in ts; printing and paper goods.
Figures in parentheses represent percentage changes from July.
Septem ber, 1926
Average daily production of petroleum in
California during August was slightly greater
than during July, but was smaller in volume
than in August, 1925. Indicated consumption
was greater than production during the month.
Stored stocks continued the decline which be
gan in June and at the end of August, 1926,
were slightly smaller than one year ago.
P E T R O L E U M — California
Indicated
Average
Stored
Average
Daily
Stocks at
Consumption
End of
Daily
Month
Production (Shipments)
A u g .,
July,
A u g .,
Sept.,
1 9 2 6 ..
1 9 2 6 ..
1 9 2 5 ..
1923*.
(barre ls)
(barrels)
605,325
604,619
677,599
858,750
607,417
685,393
538,2040
f
New W ells-N
Daily
Produc
tion
Number
Opened
(ba rre ls)
(b a rre ls)
120,605,895
121,910,744
120,818,3100
t
68
18,067
27,582
98
93
139,960
55
68,202
*Peak of production. fCom parable figures not available. ORevised.
Source : Am erican Petroleum Institute.
Figures of national production of non-ferrous
metals follow :
N O N -F E R R O U S M E T A L S —National Production
August, 1926
July, 1926 August, 1925
Copper (short tons) (mine
production) ...........................
Lead (short tons) (cru d e).
Zinc (short tons) ( s l a b ) . . .
Silver (o z.) (com m ercial
bars) .........................................
72,221
49,625
51,761
7 2 ,9 4 9
49,749
48,403
68,574
46,223
47,849
5,073,000
4,660,000
4,907,000
Production of 16 reporting flour milling
companies in the Twelfth District decreased,
and stocks of flour increased during August,
both movements being contrary to the experi
ence of the five years, 1921 to 1925. Stocks of
wheat held by reporting millers were increased
by more than 50 per cent during August, and,
at the end of the month, exceeded the five-year
average end of August figure by about the
same amount. Figures follow :
Ju ly ,1926
454,175
Aug., 1925
371,882
Five-Year
Average
August,
1921-1925
479,356
349,938
1,570,287
334,213
1,441,377
364,404
1,604,519
F L O U R M IL L IN G *
O utput ( b b l s . ) . . .
Stockst
Flour ( b b l s .) ...
W h ea t ( b u . ) .. .
Aug., 1926
420,516
536,380
2,440,349
* A s reported by 16 companies.
(D) B ank D ebits*—
*000 omitted.
August,
1926
17,846
13,407
33,695
43,786
.
817,286
153,313
21,102
32,306
21,889
.
193,043
9,167
30,077
65,059
58,761
.
983,851
24,421
.
214,752
51,602
24,349
43,818
12,180
. $2,865,710
.$
$
The peak of the 1926 fruit canning season in
the Twelfth District was reached during the
past month. Commercial factors estimate that
the total canned fruit pack will exceed that of a
year ago (20,206,276 cases in the principal pro
ducing states). Canned fruit markets have been
active, and prices have been relatively stable
during the present marketing season. Fruit
drying operations for the year are now drawing
to a close with the drying and delivery to pack
ing houses of prune and raisin crops. The
amount of fruit dried or to be dried has not yet
been officially estimated. The market during
recent weeks has been moderately active.
General Business and Trade
General business activity continued at high
levels during August, although seasonally cor
rected figures of bank debits, a measure of
INDEX NUMBERS
180r
IT 0
180
150
140
130
120
1919-1 925
TREN DS
/
— 'TA
~
/ J
-— WITH SiIA S ON A L AC>JU STM £N T
------- W ITHOUT A D J U S T M E N T
110
.
to o
1922
.
Î9 23
I
1924
I
I
1925
1926
B A N K D E B I T S - T W E L F T H D IS T R I C T
Index for 20 principal cities, Phoenix, Arizona, not included,(daily
averages, 1919 average = 1 0 0 ). Latest figures, August, with
______
adjustment, 166; without adjustment, 146.
*B ased upon average month to month increase during the years
1919 to 1925 inclusive.
t A t end of month.
Trade factors report that both domestic and
foreign flour markets have been relatively inac
tive during recent weeks.
B e r k e l e y ............
Boise ....................
Fresno ...............
L o n g Beach . .
L os Angeles . .
Oakland ............
Ogden .................
Pasadena ..........
Phoenix ............
Portland ............
Reno ...................
Sacramento . . .
Salt Lake C ity.
San D iego
San Francisco .
San Jose ..........
Seattle .................
Spokane ............
Stockton ...........
T a c o m a ...............
Yakim a ...............
District ..........
69
FEDERAL RESERVE AGENT AT SAN FRANCISCO
August,
1925
17,574
12,660
44,149
44,629
734,485
140,839
24,063
30,343
18,197
168,461
9,220
32,299
66,703
53,027
9 3 2 ,3 5 8
26,444
204,054
50,927
2 7 ,1 1 7
43,555
12,625
$ 2 ,6 9 3 ,7 2 9
( --------Eight
M onth s---------->
1926
1925
144,919
153,188 $
103,812
93,116
247,593
276,737
407,514
377,437
6,232,627
6,959,992
1,347,883
1,091,999
156,542
182,419
283,811
300,801
201,877
180,117
1,272,911
1,431,000
72,030
67,408
253,340
291,842
558,729
535,312
518,967
429,390
8,502,692
7,416,340
203,535
192,653
1,680,332
1,560,675
442,708
401,181
212,372
199,270
3 6 7 ,7 9 2
347,693
101,244
92,713
$24,253,087
$21,641,426
$
total trade volume, declined slightly during the
month. Detailed trade statistics, in general,
confirm the evidence of the more comprehen
sive indexes.
The volume of debits against individual ac
counts (bank debits), reported by clearing
houses in 21 cities of the Twelfth District, de
creased 9 per cent during August. The decrease
was slightly greater than has been usual dur
ing August of past years, and this bank’s index
of daily average bank debits (1919 monthly
average = 100) declined from 168 in July, the
highest point reached by this index, to 166 in
August. A s compared with August, 1925, an
increase of 11 per cent was recorded.
B A N K D E B IT S —Twelfth District
Index for 20 Principal Cities*
A ug.,
July,
June,
A u g.,
1926
1926
1926
1925
W ith out Seasonal A d ju s tm e n t.. .
146
157147
134
W ith Seasonal A d ju stm en t............
166
1680154
150
*Daily averages, 1919 average=100. ORevised.
70
September, 1926
MONTHLY REVIEW OF BUSINESS CONDITIONS
Detailed dollar figures of bank debits in 21
principal clearing house centers are given in
Table “ D .”
The value of sales at 66 reporting retail
stores in this district was seasonally larger dur
ing August than during July and exceeded the
reported value of sales for August, 1925, by
6.3 per cent. Total sales were 4.2 per cent
greater in value during the eight months ended
A ugust 31st than during the same period in
1925. Total stocks on hand at reporting stores
were increased 3.9 per cent during August, but
at the end of the month were 0.2 per cent
smaller in value than one year ago. The indi
cated rate of stock turnover, based upon re
ports of 32 department stores, was higher in
August, 1926 (3.1 times per year) than in A u
gust, 1925 (3.0 times per year). During each of
the past six months, including August, the
value of total sales reported by 32 department
stores whose figures are included in this bank’s
in dexof department store sales has been greater
than in the same month of any previous year
during the period in which the record has been
kept, 1919 to date. Index numbers of depart
ment store sales, based upon value of sales of
32 representative department stores in this dis
trict are given below.
decline in August and averaged approximately
7 per cent lower than in August, 1925.
W HOLESALE TRADE
Agricultural Im plem ents.
Autom obile Supplies
Autom obile Tires ..............
D ry G o o d s .............................
Electrical Supplies ..........
Hardware
.............................
Stationery
.............................
N o. of
Firms
15
13
17
7
15
9
14
20
17
12
23
Percentage increase or decrease(— )
-in V a lu e of SalesAug., 1926 A u g., 1926 July, 1926
compared
compared compared
with
with
with
Aug., 1925 July. 1926
Ju ly,1925
— 40.2
— 14.8
— 3.6
— 2.4
— 4.6
— 8.5
31.8
28.3
— 15.6
3.8
— 0.9
1.0
— 1.5
36.6
— 8.8
12.7
24.9
- - 0.1
3.6
22.9
9.1
2.6
— 2.4
4.2
— 1.8
3.0
— C.9
6.9
44.2
19.2
6.2
26.8
3.4
INDEX N UM BER S
D E P A R T M E N T S T O R E S A L E S — Index Numbers
(1919 Monthly Average = 100)
Los
Angeles
(6)*
O ak
land
(5)*
San
Fran
cisco
(8)*
Salt
Lake
City
(4)*
Seattle
(5)*
Spo
kane
(3)*
D is
trict
(32)'
135
109
124
147
134
146
108
113
129
87
84
109
121
106
105
82
86
90
97
89
98
98
102
95
73
75
97
97
79
91
90
95
93
76
70
88
151
129
142
152
150
160
119
130
142
Without Seasonal Adjustment
A u g .,
1926. . 232
1926. . 200
July,
June,
1926. . 209
M ay,
1926. . 214
April,
1926. . 222
March, 1926... 247
Feb.,
1926. . 180
Jan.,
1926. . 210
A u g.,
1925. . 210
145
128
142
152
144
148
112
124
138
D E P A R T M E N T S T O R E S A L E S —T W E L F T H D IS T R IC T
Index of 32 Stores in 7 cities (1919 monthly average—100). Latest
figures, August, with adjustment, 158; without
adjustment, 151.
On August 31, 1926, savings deposits in 69
banks in seven principal cities of the district
were 7.2 per cent larger than on August 31,
1925, and 0.1 oer cent smaller than on July 31,
1926.
S A V IN G S D E P O S IT S
W ith Seasonal Adjustmentf
A u g .,
July,
June,
M ay,
April,
M arch,
F eb.,
Jan.,
A u g .,
1 9 2 6 ...
1 9 2 6 ..,
1 9 2 6 ..,
1 9 2 6 ..,
1 9 2 6 ..,
1 9 2 6 ..,
1 9 2 6 ..,
1 9 2 6 ..,
1 9 2 5 ..,
216
233
226
233
237
255
223
221
195
161
161
141
163
149
158
149
145
153
142
141
149
133
139
147
142
128
135
112
105
106
105
113
115
114
104
115
103
97
98
100
108
102
113
99
102
111
101
90
90
98
110
110
97
101
158
157
154
147
155
164
156
148
148
*Figures in parentheses indicate number of stores. One store in
cluded in district figures not included in cities shown above.
f N o adjustment has been made for business days lost due to
Saturday closing of stores during the summer months.
W holesale trade was more active during Au
gust than a year ago. Total value of sales re
ported to this bank by 162 firms in eleven lines
of business was 2.9 per cent larger in August,
1926, than in August, 1925. Seven of the eleven
reporting lines showed increases over the year
period. General wholesale prices continued to
Number Aug.
of
31,
Banks
1926*
Los Angeles . . 13
$421,024
102,367
O aklandf • . •.
7
55,771
Salt Lake City 8
33.263
San Francisco. 14
488,875
82,411
19,746
Total
............
July
31.
1926*
$420,493
102,246
55,316
33,004
492,042
81,880
19,527
August 3 1 ,1926J
compared with
Aug.
Aug. July
31.
31.
31.
1925*
1925
1926
$380,705
0.1
10.6
97,869
0.1
4.6
5.7
0.8
52,7760
30,243
10.0
0.8
4.8 — 0.6
466,5840
74,971
9.9
0.6
19,359
2.0
1.1
69 $1,203,457 $1,204,508 $1,122,5070
7.2 — 0.1
*000 omitted, tln clu d es one bank in Berkeley which was for
merly a branch of an Oakland bank. IPercentage increase
or decrease (— ) . ^Revised.
Prices
Further slight declines in com m odity prices
during August, 1926, placed the United States
Bureau of Labor Statistics’ wholesale price in
dex (1913 prices = 100) at 149.2 for that
month, compared with 150.7 in July, 1926, and
Septem ber, 1926
71
FEDERAL RESERVE AGENT AT SAN FRANCISCO
160.4 in August, 1925. The August, 1926, figure
was lower than any reported since June, 1924,
when the index stood at 147.1. The 1925 low,
155.2, was reported in May, 1925. Group index
numbers of prices of farm products, foods,
cloths and clothing, building materials, chemi
cals and drugs, house furnishings, and miscel
laneous commodities have declined throughout
the present year. Index numbers of prices in
the other groups, fuel and lighting and metals,
making up the all-commodities index have been
relatively unchanged during this period.
The Department of A griculture’s farm price
index (1909-1914 prices = 100) declined from
135 in July to 132 in August, 1926, and the Bu
reau of Labor Statistics’ index of prices of nonagricultural commodities also declined from
147.3 to 143.6. The ratio between these two
indexes (an indication of the purchasing power
of farm products) declined from 84.8 to 82.4
during the month, the latter figure being the
lowest since May, 1924, when the ratio was
82.0. In August, 1925, this ratio was 93.
Livestock prices declined during early A u
gust, as they had in July, but advanced slightly
during the later weeks of the month and in
early September. The weekly average prices
at Chicago for cattle, lambs, and hogs, per 100
pounds, were 7.0 per cent, 1.1 per cent, and 1.7
per cent higher, respectively, for the week end
ing September 3, 1926, than for the week end
ing August 6, 1926, but were 11.9 per cent, 5.0
per cent, and 2.9 per cent lower, respectively,
than the averages for the corresponding period a
year ago. The average price for sheep declined
14.4 per cent during August and at the close of
the month was 20.4 per cent under the average
price for the week ending September 4, 1925.
W heat prices declined during August but
advanced slightly during the first weeks of Sep
tember. Quotations for September contract
wheat at Chicago, for the week ending Septem
ber 3, 1926, ranged from $1.29^ to $1.30% per
bushel, compared with a range of from $1.38 to
$1.39^4 on August 6, 1926. On September 18,
1926, cash wheat sold for $1.33)4 to $1.34j4 per
bushel at Chicago, compared with a price range
of $1.51 to $1.53^ per bushel reported for Sep
tember 18, 1925. W ith the exception of quota
tions for a short period early in May, wheat
prices thus far in 1926 have consistently been
lower than in 1925.
Cotton prices fluctuated within narrow limits
during August and early September, with a
general downward tendency. Spot quotations
for middling uplands cotton at New Orleans
for the week ending September 3, 1926, ranged
from 17.83 to 18.12 cents per pound, a decrease
of 2.2 per cent from their range one month ago,
and a decline of 16.9 per cent since Septem
ber 4, 1925, when the quotations ranged from
21.28 to 22.00 cents per pound. On Septem
ber 16, 1926, the quotation was 16.37 cents per
pound. An average of 98 wool quotations at
Boston declined 0.9 per cent during the month,
and on September 3, 1926, was 15.3 per cent
lower than for the corresponding period a year
ago.
Refined beet sugar was quoted at $5.70 per
100 pounds, f. o. b. San Francisco, on Septem
ber 3, 1926, a decline of ten cents since A u
gust 6, 1926. A year ago the price was $5.65 per
100 pounds.
California shipping point prices for grapes
were generally lower during the first weeks of
September, 1926, than in mid-September, 1925.
A summary of prices paid f. o. b. at shipping
points during mid-September of each of the
past four years fo llo w s :
T A B L E G R A P E S — Per Crate
September
Thompsons
Malagas
Tokays
1926
1925
1924
1923
$ 0.60-$0.65
6 5 - .75
6 5 - .75
7 5 - .85
$0.70-$0.75
.7 5 - 1.00
.7 5 - .90
.9 0 - 1.10
$ 0 .90-$1.00
1 .1 5 - 1.30
.9 0 - 1.35
1.50
...........................
J U IC E G R A P E S -P e r Ton
Alicantes
1926
1925
1924
1923
.............
$62.50-$65 .00
95.0 0 -1 0 5 .0 0
100.00-120 .00
...........................
9 0 .00-100.00
Zinfandels
Muscats
$ 6 0.00-$62 .50
7 0 .0 0 - 77.50
8 0 .0 0 - 85.00
6 5 .0 0 - 85.00
$ 30.00-$32 .50
3 2 .5 0 - 37.50
3 0 .0 0 - 37.50
3 5 .0 0 - 40.00
One Month Ago
One Year Ago
(E) Com m odity P rices Unit
Commodity
W holesale Prices (U . S. Bureau of Labor— 1 9 1 3 = 1 0 0 ) ........................
Purchasing Power of Farm Products ( U . S. Dept, of A griculture)*
Cattle (N ative B e e f). Wreekly average price at C hicago........................
L a m b s ............................... W eek ly average price at C hicago.........................
H o g s ..................................W eek ly average price at C hicago..........................
W o o l ..................................Average of 98 quotations at B oston ........... .....................
O ranges.
Prunes. .
R aisins. .
.Size 4 0 /5 0 in 25-lb. boxes f. o. b. California............
.Thompson Seedless bulk in 25-lb. boxes f. o. b.
Canned Peaches.
B u tter..........
..........92 score at San Francisco.
Lum ber (S o ftw o o d ). .W e ek ly Index, U nited S ta tesf.
100 lbs.
100 lbs.
100 lbs.
bu.
lb.
box
box
lb.
lb.
doz.
lb.
September 3,1926
149.2
82.4
$10.00
14.25
11.65
1 .2 9 3 ^ -1 .3 0 ^
6 6 .1 7 ^
1.00-1.2 5
4.7 5 -5 .2 5
.0 7 ^ -.0 8
.0 7 y *
2 .2 0
.44
29.90
150.7
84.8
$9.35
14.10
11.45
1.38-1.3954
6 6 .7 6 0
7 8 .0 8 0
1.00-1.35
4 .50-5.2 5
.0 8 -0 3 ^
2 .5 0 -3 .0 0
7.25-7.7 5
.0754
2.20
.42
2 9 .9 6
*Ratio of farm prices (August, 1909-JuIy, 1914=100) to wholesale prices of non-agricultural commodities (1910-1914=
f As published by “ The Lumber Manufacturer and Dealer.”
160.4
93.0
$11.35
15.00
12.00
1.5154-1.54J4
.Q 9 -.0 9 Ÿ 2
N o t Quoted
2.20
.50*4
30.37
:1 0 0 ).
72
Septem ber, 1926
MONTHLY REVIEW OF BUSINESS CONDITIONS
The general trend of silver prices has been
downward since June, 1920. The monthly av
erage price of silver at New Y ork for August,
1926 (62.380 cents per ounce) was the lowest
reached since August, 1921, when the average
was 61.597 cents per ounce. M onthly average
prices of non-ferrous metals, with the percent
age increase or decrease from one month ago
and from one year ago, are shown in the fol
low ing ta b le:
N O N -F E R R O U S M E T A L S P R IC E S
(C en ts per pound)
August, July, August,
1926
1926
1925
Copper, N ew Y o r k ____ 14.174 13.924 14.490
Lead, N ew Y o r k ............
8.908
8.499
9.192
Silver,* N ew Y o r k ____ 62.380 64.793 70.240
Zinc, St. L o u is ...............
7.376
7.411
7.576
Percentage
increase or
decrease(— ) from
One
One
M o . Ago Y r . Ago
1.8 — 2.2
4.8 — 3.1
— 3.7 — 11.2
— 0.5 — 2.6
*C ents per ounce.
A national index of lumber prices, published
by “ The Lumber Manufacturer and Dealer,”
declined from 29.96 to 29.90 during August,
1926. A year ago the index stood at 30.37.
Trade reports indicate that lumber prices at
Pacific Northwestern producing centers have
tended to become firmer during recent weeks.
Banking and Credit Situation
Commercial demand for credit changed little
during the summer months. W ith the approach
of the peak of the harvest season, however,
MILLIONS OF D O L L A R S
M E M B E R B A N K C R E D I T — T W E L F T H D IS T R I C T
Figures for about 65 member banks in leading cities, a s of last
Wednesday of each month. Latest figures, August 25.
demands for funds for crop m oving and other
agricultural purposes were evidenced in an
increase of loans reported by member banks,
and in some sections in an increase in dis
counts at the Federal Reserve Bank. Adequate
supplies of funds continued available at moder
ate rates of interest.
During August, city member banks reported
that their total loans and investments, which
had declined during June and July, had ad
vanced to levels approximating the high point
of the previous May ($1,680,000,000). By midSeptember, the peak of the harvest season,
their total loans and investments had advanced
to a new all-time high of over $1,691,000,000.
Commercial loans of these banks were nearly
constant in volume during the mid-summer
months but rose from $899,000,000 on A u
gust 4th to $924,000,000 on September 15th, the
latter figure approximating the 1925 preChristmas peak. Loans made on securities as
collateral stood at $295,000,000 on Septem
ber 15th, compared with the May 12th figure
of $297,000,000. Total deposits, which have fluc
tuated but little during the past few months,
were slightly larger on September 15th than in
May.
R E P O R T IN G M E M B E R B A N K S * — Twelfth District
(In m illio n s of d ollars, percentage ch anges in p a ren th ese s.)
Condition
Sept. 15,
1926
Total Loans ........................
Commercial Loans ..........
L oans on Securities
Investm ents ........................
Total Loans and Invest
ments .................................
N et Dem and D e p o s i t s ...
Tim e D eposits ...................
Borrow ings from Federal
Reserve B a n k .................
. 1,219
.
924
.
295
.
473
/-----------Changes from -------------- \
One Month
One Year
Ago
Ago
/ + = increase \
V — = decrease /
+ 18 ( 1.5)
+ 8 1 ( 7.1)
+ 2 1 ( 2.3)
+ 3 9 ( 4.5)
— 3 ( 1.0)
+ 4 1 (16 .3 )
+ 8 ( 1.8)
+ 9 ( 1.9)
. 1,691
.
793
.
836
+ 2 6 ( 1.6)
+ 19 ( 2.5)
— 8 ( 1.0)
+ 8 9 ( 5.6)
+ 14 ( 1.8)
+ 58 ( 7.5)
42
+ 10 (29 .4 )
+
*T o ta l resources of reporting banks are approxim ately
cent of total resources of all banks, and 71 per cent
resources of all m em ber banks in Tw elfth Federal
D istrict. Reporting banks embrace m em ber banks
A n geles, San Francisco, Oakland, Portland, Tacom a,
Spokane, O gden, and Salt Lake City.
5 (12.4)
50 per
of total
Reserve
in Los
Seattle,
Total earning assets of the Federal Reserve
Bank of San Francisco declined from May to
June, recovered to the May level during July
and August, advanced sharply during the first
week in September, and then decreased so that
by mid-September the total of bills and secu
rities held was approximately equal in volume
to May holdings. Federal reserve note circu
lation has been at higher levels during the past
summer than during the spring months of 1926,
reflecting increased currency demands on the
part of member banks. On September 15th the
volume of Federal reserve notes in circulation
was 7 per cent less than one year ago.
F E D E R A L R ESER VE B A N K O F S A N F R A N C IS C O
(In m illion s o f dollars, percentage changes in p aren th eses.)
C on
dition t-------------- Changes from--------------- v
Sept. 15,
One Year
One Month
Ago
Ago
1926
increase \
Total Bills and Securities.
Bills Discounted .................
U nited States S e cu ritie s..
Bills B ought ........................
Total Reserves ...................
Total Deposits ....................
Federal Reserve N ote
Circulation ........................
122
51
43
28
259
177
+
+
—
+
+
+
f + ==
V— = decrease /
6 ( 5.5)
+ 9 ( 8.4)
7 (1 4 .8 )
+ 3 ( 5.6)
6 (11 .7 )
+ 0 ( 0.6)
+ 7 (33 .9 )
6 (24.9)
2 ( 0.6)
— 9 ( 3.3)
+ 13 ( 8.2)
7 ( 4.0)
192
+
4 ( 2.0)
— 15 ( 7.2)
@FedFRASER