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MONTHLY REVIEW
OF
B U S IN E S S C O N D IT IO N S
ISA A C B. NEW TON, Chairman of the Board and Federal Reserve Agent
Federal Reserve Bank of San Francisco
Vol. XVI
San Francisco, California, September 20,1932
No. 9
T W E L F T H FED ER AL RESERVE DISTRICT CONDITIONS
Production of the District’s principal indus
tries and activity in most fields of trade in
creased in response to seasonal influences dur
ing August. Wholesale prices for many
commodities important in the Twelfth District
continued to rise during August and the first
half of September. Credit conditions were
easier in city than in country bank areas.
Harvesting of many agricultural products
approached completion during August, while
late maturing crops developed satisfactorily.
September 1 estimates confirmed earlier indi
cations of larger aggregate crop production
than in the preceding year. Marketing activity
increased seasonally, but was lower than in
August, 1931. Inventories of agricultural prod
ucts generally remained relatively large, but
prices continued to advance from the record
low levels of early summer.
Operations in the California petroleum in
dustry continued under curtailment during
August, with little change apparent in demand
for or output of the industry’s products. Activ
ity in the lumber industry remained at ex
tremely low levels, although a slight increase
in demand for lumber was indicated by the
larger volume of orders received by mills. Build
ing and construction failed to reveal any note
worthy change during August. Production of
foods increased during the month, reflecting
largely seasonal activity in the canning of
fruits. The number of industrial employees in
California increased by more than has been
usual during August.
More than the seasonal rise from July to
August was recorded in retail trade. Sales at
wholesale also increased after seasonal adjust
ment. Automobile registrations remained prac
tically unchanged. Freight carloadings in
creased by less than is customary, but inter
coastal traffic through the Panama Canal was
larger in August than in July, although a re
cession in tonnage is usual between these
months.
Additional funds were made available to
banks in city areas during the five weeks end
ing September 21. Substantial increases in cir
culation of national bank notes were more than
sufficient to meet seasonal demands for cur
rency, and enabled member banks to reduce
borrowings at the Federal Reserve Bank of
San Francisco. Time and net demand deposits
of reporting member banks were practically un
changed between August 17 and September 21.
Government deposits and investments in
creased sharply on September 15 as a result of
Government financing on that date. Banks con
verted part of the securities into cash almost
immediately, thereby increasing the supply of
banking funds available to the District. During
the ten weeks preceding September 15, total
loans and investments of reporting member
banks had been practically unchanged, continu
ous declines in loans having been offset by in
creased holdings of United States securities.
Agriculture
During August and early September weather
conditions continued favorable for agricultural
activities in the Twelfth District. Completion
of the harvests of many fruit, grain, and field
crops and the satisfactory development of late
crops continue to indicate that the volume of
crop production during 1932 will be larger than
in 1931. A considerable amount of fruit in the
Pacific Coast states is not being picked because
current prices are not returning harvesting and
marketing costs. Ranges continue to furnish
adequate feed for livestock.
During the autumn harvesting and market
ing season, the price of farm commodities is
more important to producers and to agencies
financing agriculture than in other seasons. In
August of this year, prices for crops and ani
mal products at the farm, as represented by
the United States Department of Agriculture
price index, were 4 per cent higher than in the
preceding month, and 14 per cent higher than
in June, although the index was at the lowest
point recorded in any August since it was first
compiled in 1910.
MONTHLY REVIEW OF BUSINESS CONDITIONS
66
Despite the greater volume of agricultural
products available for consumption, the volume
marketed thus far this autumn has been smaller
than in the corresponding period of 1931. Stocks
of agricultural products in the raw and semi
processed state were generally larger on Sep
tember 1 this year than on the same date in
1931.
I N D E X E S O F A G R I C U L T U R A L P R I C E S - U n i t e d States
(August, 1909-July, 1914=100)
f ------------------------ A u gu st —-----------------------%
1932
A ll G ro u p s ....................................
G ra in s ..............................................
F ru its and V e g e t a b l e s ............
C o t t o n an d C o t t o n s e e d ............
M e a t A n im a ls .............................
D a ir y P r o d u c t s ...........................
P o u ltr y P r o d u c ts ......................
59
43
79
51
69
65
75
1931
75
54
97
53
92
87
93
1929
143
129
160
146
165
137
151
1921
116
103
178
91
112
1913
101
95
102
93
110
138
143
S o u r c e : U n ite d S ta te s D e p a r tm e n t o f A g ric u ltu re .
Previous estimates that grain crops would be
larger in 1932 than in 1931 have been substan
tiated by near-completion of harvesting. Pro
duction of most field crops— beans, cotton,
potatoes, and rice— will be smaller this year
than in 1931 or 1930, although tame hay pro
duction is expected to be approximately 25 per
cent larger than a year ago.
G R A IN A N D F IE L D C R O P S— P R O D U C T IO N
(In thousands)
F orecast
F orecast
1931
Sept. 1,1932 A u g. 1,1932
B ea n s (b a g s )
3,219
5,550
3,444
C a liforn ia , I d a h o . . .
12,713
9,645
9,907
U n ite d S t a t e s ..............
C o t t o n (b a le s )
292
194
198
A r iz o n a , C a lifo rn ia . .
17,096
11,306
11,310
U n ite d S tates ............
H o p s (p o u n d s )
C a liforn ia , O re g o n ,
24,505
25,852
25,970
W a s h in g t o n .......... .
P o t a t o e s (b u s h e ls )
41,786
45,771
41,036
T w e lft h D is t r ic t . . .
367,399
375,518
356,746
U n ite d S ta te s ..........
R ic e (b u s h e ls )
6,270
8,000
6,490
C a lifo rn ia ...................
39,084
45,014
37,711
U n ite d S tates ............
T a m e H a y (to n s )
10,524
13,070
13,188
T w e lfth D is tr ic t . . .
67,390
64,213
68,587
U n ite d S ta tes ..........
S u g a r B eets (to n s )
2,526
1,870
C a lif., I d a h o , U ta h .
7,933
8,206
U n ite d S ta tes ...........
B a rle y (b u s h e ls )
51,285
23,535
51.532
T w e lft h D is t r ic t . . . .
302,808
198,185
U n ite d S ta te s .......... „ 302,666
O a ts (b u s h e ls )
24,251
21,795
24,666
T w e lft h D is t r ic t . . . .
1,214,733
1,112,037
U n ite d S ta te s .......... , 1,244,781
W h e a t (b u s h e ls )
114,309
90,291
T w e lft h D is t r ic t . . . 114,842
722,687
894,204
U n ite d S tates .......... . 714,538
S ou rce:
1930
6,179
13,759
419
13,932
23,447
47,150
333,210
7,271
44,299
12,169
63,463
1,767
9,199
44,621
304,601
26,300
1,277,764
112,562
858,160
U n ite d S ta tes D e p a rtm e n t o f A g ric u ltu re .
Excepting grapes, the bulk of this year’s de
ciduous fruit production in California had been
harvested by mid-September. Most of the
crops are larger this year than in 1931 but
smaller than in 1930. Grape production in that
state is estimated to be 1,822,000 tons, com
pared with a crop of 1,320,000 tons in 1931,
which was the smallest crop in ten years. Nearly
90 per cent of the increase as compared with
last year is the result of larger production of
raisin grapes. In the Pacific Northwest, as in
California, the commercial crop of apples will
September, 1932
be larger this year than last, although the total
crop approximates that of 1931. Harvesting
of other deciduous fruit crops in the Pacific
Northwest is now being finished.
A P P L E S - P R O D U C T IO N
(in thousands of bushels)
F o re ca st
C om m ercia l C r o p
Sept. 1,1932
C a lifo rn ia
..................................
6,480
I d a h o ...........................................
4,290
O r e g o n .........................................
3,150
U ta h ..............................................
543
W a s h in g to n
.............................
28,080
T o ta l
.......................................
U n ited S tates ...........................
42,543
88,851
1931
4,647
3,969
2,079
210
25,893
36,798
103,476
1930
6,522
4,650
4,470
945
33,597
'5 0 ,1 8 4
101,004
Current production estimates of citrus fruits
in California indicate slightly lower yields in
1932 than in 1931. Rail shipments of oranges
and lemons during August were smaller than in
July, but approximated shipments in August,
1931. In August, orange prices at $1.66 per
box, f.o.b. California, averaged lower than in
any month since January, and were 22 per cent
lower than a year ago. Lemon prices increased
during the month.
Livestock continued to gain satisfactorily
during August, and the autumn movement of
cattle and lambs to market commenced during
that month. The proportion of total market
shipments represented by feeder lambs is run
ning smaller this fall than in 1931 when poor
feed conditions resulted in unusually heavy
marketing of such stock. There has been little
forward contracting of lambs for autumn and
winter feeding and low prices prevail for this
class of animal. Cattle receipts at Twelfth
District markets during the summer months
were about 10 per cent smaller and lamb re
ceipts about 17 per cent smaller than a year
ago. In contrast with the trend of receipts in
the mid-Western markets, shipments of hogs
to Pacific Coast markets continued larger than
a year ago.
The number of beef cattle, particularly cows
and calves on farms and ranges, has increased
A g r ic u lt u r a l M a r k e t in g A c t iv it y —
t --------- A u g u s t ---------->
/— Seaso n to D a te —v
1932
1931
1932
1931
13,607
5,799
3,811
16,554
5,942
3,364
26,966
65,894
51,358
35,232
70,221
63,537
1,091,841
556,910
1,059,382
581 ,746
1,211,523
1,073,582
3,237,771
1,293,155
37,972
133,127
. 585,813
121,616
E g g s (ca se s) .. . .
B u tte r ( l b . ) .......... 6,274,826
6,068
W h e a t (c a r lo t s ) . .
674
B a rle y ( c a r lo t s ) . .
48,939
139,621
702,813
137,627
7,236,778
6,665
558
335,068
1 ,424,794
2,593,914
1,203,057
56,078,186
8,681
1,268
352,738
1,111,533
3,057,688
1,338,622
55,595,477
11,435
1,499
S to r a g e H o ld in g s
(e n d o f m o n t h )
W h e a t ( b u . ) . . . . . 2,034,000
703,242
B eans (b a g s )
B u tte r ( lb .) .......... 7,009,853
576,192
E g g s (c a s e s ) ------
13,640,000
689,409
5,391,431
540 ,104
C a rlo t S h ip m en ts
D e c id u o u s F r u it .
C itru s F r u i t ..........
V e g e ta b le s ............
E x p o rts
W h e a t (b u .) . . . .
B a rle y ( b u .) . . . .
R e c e ip t s
H ogs*
......................
*Los Angeles receipts not included.
September, 1932
FEDERAL RESERVE AGENT AT SAN FRANCISCO
about 3 per cent in this District since 1930,
while market receipts have declined slightly.
Absorption of the larger volume of marketing
likely to eventuate from this increase in breed
ing herds at a fair rate of return to producers
depends largely upon improvement in consumer
purchasing power.
The much better condition of ranges and
plentiful supplies of hay, grain, and cottonseed
by-products for fattening have improved the
outlook for livestock feeding operations this
autumn as compared with a year ago.
Industry
Changes in Twelfth District industry were
predominantly seasonal in character during
August. Crude oil production increased some
what, but, seasonal factors considered, lumber
ing and construction did not change materially,
and output of cement declined. Consumption
of electric energy changed little from July to
August. Flour milling increased more sharply
than has been customary at this time of year.
Some increase in employment, largely sea
sonal, was reported during August. Hiring
of additional employees by the food manufac
turing, clothing and textile, motion picture, and
construction industries contributed the major
part of the increase. There was little change
during the month in the relatively small num
ber employed at lumbering and mining. Gen
eral manufacturing industries employed at
least as many workers in August as in July.
Vigorous efforts of the Twelfth District Indus
trial and Banking Committee to alleviate un
employment by spreading available jobs among
E m p lo y m e n t—
Industries
S to n e , C la y and
G lass P r o d u c t s ..
--------- C a liforn ia ------N o . of
N o . /—E m ployees of
A u g .,
A u g .,
Firm s 1932
1931
....................
177,298
5,107
(-— 17.0)
6,150
12,371
(- —2 9 .1 )
16
1,500
(-— 16,2)
17,453
41
1,791
8
11,219
(- - 1 5 . 1 )
13,209
5$
54,029
(-— 12.4)
42 48,579
( — 9 .2 )
61,651
60
C lo th in g , M illin e ry
a n d L a u n d e r in g . 161
F o o d , B ev e ra g e s
and T o b a c c o . . .
P u b lic U t i l i t i e s .. .
273
58,099
(- - 1 7 . 1 )
50
7,473
(7 .3 )
O th e r I n d u s t r i e s f . 484
M i s c e l l a n e o u s ____
W h o le s a le and
R e ta il .................
119
149,798
( - 1 5 .5 )
L u m b e r and W o o d
M a n u fa c tu r e s . . 131
T e x tile s
N o.
of
Firm s
36
-O r e g o n N o . of
- E m ployees A u g .,
A u g .,
1931
1932
14,428
(- 2 2 .0 )
18,496
7,440
(- - 2 5 . 7 )
809
(- - 3 4 . 1 )
10,011
244
(- - 1 4 . 4 )
1,739
(- - 2 1 . 5 )
285
1,227
2,215
53,503
70,080
6,964
29
4,196
(--1 1 .8 )
4,758
30,720
27,520
(- - 1 0 . 4 )
* P u b lic u tilitie s and w h o le sa le an d retail fig u re s n o t in clu d e d in
this tota l, t ln c l u d e s th e fo llo w in g in d u s tr ie s : M e ta ls , m a
c h in e r y and c o n v e y a n c e s ; lea th er and r u b b e r g o o d s ; o ils an d
p a i n t s ; p rin tin g and p a p e r g o o d s . {L a u n d e r in g o n ly .
162
Figures in parentheses indicate percentage change from August,
1931.
67
the greatest number of workers possible
through reduction of the hours of labor and
by means of other plans adaptable to particu
lar situations have been at least partially suc
cessful. Reports of wage reductions were less
numerous during July and August than in
earlier months of this year.
California petroleum output increased dur
ing August and was slightly in excess of the
proration allowable of 475,600 barrels daily set
for that month. In the three weeks ending
September 17, crude oil production was at about
the same rate as in August. Effective October 1,
when seasonal reductions in consumption of
petroleum products usually become pronounced,
it is planned to impose further restrictions upon
output. Volume of crude oil run to refinery
stills was smaller in August than in July, but
gasoline inventories continued relatively large.
Although the value of building permits is
sued during August was larger than in July,
this Bank’s adjusted quarterly indexes for both
the larger and smaller groups of cities declined.
Despite a sharp decrease in Federal Govern
ment contracts, value of engineering contracts
awarded increased after seasonal adjustment,
chiefly because waterworks undertakings were
larger than for any month since October, 1925.
Lumber production increased by less than
the seasonal amount during August. Shipments
and orders were larger than in the preceding
month and continued, as during most of the
past two years, to exceed the volume of lumber
cut, thereby contributing further to reductions
in lumber inventories, which have been declin
ing for more than a year. Complete data for
lumber stocks are not reported, but available
information indicates that they are now con
siderably lower than at any time during the
In d u s t r y —
In dexes o f daily average produ ction , adjusted for seasonal variations
(1923-1925 daily averaee=l00)
— 1!>32 A u g. July June M ay
G eneral
32
C a rlo a d in g s — I n d u s t r ia l.. 31
34
34
137
E le c t r ic P w r . P r o d u c tio n . 1341Í 134
135
M a n u fa c tu r e s
L u m b e r .................................. 33
35
35
32
144
137
R e fin e d M in e ra l O i l s f . . .
131
F lo u r ....................................... 109
85
103
100
90
S la u g h te r o f L iv e s t o c k . .
87
83
C e m e n t .................................. 45
51
43
54
82
108
W o o l C o n s u m p t io n !
55
M in era ls
P e tro le u m (C a lifo r n ia ) f . 73
72
71
76
L e a d ( U n it e d S ta te s ) t . . 33
31
49
59
S ilv e r (U n it e d S ta te s )
41
40
41
49
B u ild in g and C o n s tr u c tio n §
32
29
29
33
B u ild in g P e rm its — V a lu e
L a r g e r C ities ................. 10
12
13
17
S m a lle r C itie s ............... 13
14
14
15
E n g in e e r in g C o n tr a c ts
A w a r d e d — V a lu e
T o t a l ............................. 63
53
49
53
92 111
E x c lu d in g B u ild in g s . 123
96
-1931
A u g . July June
53
56
56
153
159
155
53
140
88
99
57
101
61
137
101
98
71
111
64
137
124
91
74
87
77
61
45
79
64
43
79
60
52
72
71
57
32
36
33
41
29
40
128
238
123
210
89
159
P re lim in a ry . f N o t a d ju s te d f o r season al v a ria tion s. {P r e p a r e d
b y F ed era l R e se rv e B o a rd . § I n d e x e s are fo r three m on th s
e n d in g w ith th e m o n th in d ica ted .
68
MONTHLY REVIEW OF BUSINESS CONDITIONS
past two or three years. It is customary for
mills to build up depleted stocks of their prod
ucts in the later months of the year when de
mand usually recedes somewhat.
Canning of this year’s pack of fruits and
vegetables was practically completed in Cali
fornia during August, and was well under way
in the Pacific Northwest. It is estimated that
the 1932 canned peach pack will be about 6^2
million cases, a pack 23 per cent less than last
year’s small output. Total stocks of canned
peaches on September 17 were less than on
October 1 of either 1931 or 1930, despite a
larger carryover this year than in either of the
two preceding years. Although actual data are
not yet available, trade journals report a small
pack of good quality canned apricots. The Cali
fornia pack of canned asparagus was reduced
to 1,313,237 cases this year, a smaller quantity
than in any year since 1922.
The August increase in output of flour was
of more than seasonal proportions. Stocks held
by reporting mills remained about the same
as in the preceding month and were somewhat
larger than a year ago. Millers’ stocks of wheat
increased, as is customary during August.
Trade
The value of department store sales increased
slightly more than is usual from July to August.
This increase was almost entirely the result of
larger sales in Los Angeles, where the Olympic
Games doubtless stimulated buying. Stores in
other District cities reported little change or
R E T A I L T R A D E — T w elfth D istrict
Percentage changes in value o f sales and stock s
with no adjustm ent fo r p rice changes
t --------------- 1932 com pared w ith 1931---------------- s
,------------N E T S A L E S ------------ >
STOCKS
January 1 to end
A u gu st
o f A u gust
A u gust
D e p a r tm e n t S to r e s . . . — 23.8 ( 6 9 )
— 24.7 ( 6 6 ) — 25.6 (5 3 )
L o s A n g e le s .............. — 18.4 (
9)
— 24.2 (
9 ) — 26.8 ( 8 )
O th e r S o u th e rn C alif. — 27.8 ( 9 )
— 26.3 ( 8 ) — 27.0 ( 7 )
O a k la n d ........................ — 24.2 (
4)
— 22.3 ( 4 ) — 33.7 ( 4 )
S a n F r a n c i s c o ............ — 23.6 (
7)
— 20.4 (
7) — 19.4 ( 7)
O th e r N o r th e r n C alif. — 24.3 (
8)
— 21.9 ( 8 ) — 22.0 ( 8 )
— 32.3 (
6 ) — 36.5 ( 7)
Portland! ................... — 34.0 ( 7 )
S ea ttle ...........................— 28.3 (
5)
— 31.1 (
5 ) — 25.6 ( 5)
S p o k a n e ........................ — 26.3 (
4)
— 22.8 ( 4 ) — 20.3 ( 4 )
S a lt L a k e C i t y ..........— 36.3 (
4)
— 25.3 ( 4 ) — 14.8 ( 3 )
A p p a r e l S t o r e s ............... — 32.4 ( 2 5 )
— 25.3 ( 2 3 ) — 26.2 (1 5 )
— 30.0 ( 3 3 ) — 23.5 (2 6 )
F u rn itu r e S to r e s ..........— 32.4 ( 3 4 )
A ll S t o r e s ........................... — 2 5 .4 (1 2 8 )
— 25.4 (1 2 2 ) — 25.3 (9 4 )
f ln c l u d e s fiv e a p p arel s to r e s w h ic h are n o t in c lu d e d in D is tr ic t
d ep a rtm e n t s t o r e total.
F ig u r e s in pa re n th e se s in d ica te n u m b e r o f s to re s r e p o r tin g .
N o t e : T h e s e fig u re s ta k e n o a c c o u n t o f o p e r a tin g c o s ts.
slight declines in sales value, after seasonal
adjustment. As compared with last year, value
of sales declined 24 per cent, while the number
of sales transactions, an indicator of the volume
of goods moved, was but 5 per cent smaller in
August, 1932, than in August, 1931. Merchan
dise inventories of reporting stores were re
duced further during August to the smallest
September, 1932
value since records were begun in 1919. Stocks
usually increase during August in anticipation
of greater activity during the remaining months
of the year. Retail prices at department stores,
as measured by the Fairchild retail price index,
decreased only 3^ per cent between August 1
and September 1, the smallest decline during
any month since January, 1931, when these data
first became available regularly.
PER
CENT
1301
_
» J-A/
V
\
A V '
V.
I
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 istrict
In d ex adjusted fo r seasonal variations (1923-1925 average = 100).
Wholesale sales were 23.3 per cent lower in
value in August, 1932, than in August, 1931,
a year-period decrease smaller than that for
July, but approximately equal to the average
reduction during the past eight months. Most
lines of activity showed moderate gains from
July to August, reflecting principally two more
trading days in the later month.
W H O L E S A L E T R A D E — T w e lfth D istrict
Percentage changes in value o f sales w ith
:nt fo r p rice changes
A u gu st, 1932
t ------- com pared w ith---------*
A g r ic u ltu r a l Im p le m e n ts
A u t o m o b ile S u p p lie s . . . .
D r u g s .......................................
D r y G o o d s ...........................
E le c t r ic a l S u p p l i e s ............
F u rn itu r e ...............................
G ro c e r ie s ...............................
H a r d w a r e ...............................
S h o e s .......................................
P a p e r and S ta tio n e r y . . . .
A ll L in e s ................................
N o te :
J u ly ,1932
. . — 17.4
7.1
10.0
39.6
2.1
34.7
1.7
5.9
19.5
8.8
A u g ., 1931
— 25.9
— 21.9
— 19.9
— 32.2
— 41.2
— 46.6
— 14.5
— 27.2
— 29.3
— 19.7
— 23.3
C um u lative
1932
com pared
w ith 1931
— 38.8
— 20.1
— 20.4
— 35.8
— 45.1
— 37.3
— 18.2
— 30.7
— 32.0
— 20.8
— 26.8
T h e s e fig u re s tak e n o a c c o u n t o f o p e r a tin g c o s ts.
A rise during August in intercoastal trade
was contrary to seasonal experience of most
other recent years. While the volume of At
lantic to Pacific cargoes receded (following a
sharp advance in July), the decline was more
than offset by increased eastbound traffic
through the Panama Canal. Both lumber and
petroleum shipments were substantially larger
in August than in July.
August registrations of new automobiles re
mained practically unchanged from the preced
ing month. In neither July nor August of this
year were registrations equal in number to
those in June, although there has customarily
been a decided increase following that month.
September, 1932
federal reserve agent at san francisco
District freight carloadings increased during
August, but by less than the seasonal amount.
This Bank's adjusted index of total loadings at
52 (1923-25 average = 100) was 27 per cent
lower than in August, 1931. Neither industrial
carloadings nor loadings of merchandise and
miscellaneous freight increased as much as has
been usual in past years between July and
August.
Prices
The advance in commodity prices which be
gan in June continued during August and early
September. The Bureau of Labor Statistics’
monthly index of wholesale commodity prices,
which advanced from 63.9 in June (1926 = 100)
to 64.5 in July, reached 65.2 in August, thus
showing the first advance for two consecutive
months since July, 1929. The figure for August,
1931, was 72.1. The monthly index of farm
prices compiled by the United States Depart
ment of Agriculture increased from 52 (August,
1909-July, 1914 — 100) in June to 59 in August.
As is usual, District market conditions were
quite similar to those in the country as a whole.
Quotations for fresh fruits and vegetables de
clined during August and the first half of Sep
tember, but stable or increasing prices for field
crops, grains, dried and canned fruits, and ani
mal products resulted in a continued increase in
agricultural prices as a whole. Grain prices
fluctuated during August at somewhat higher
levels than in July but decreased moderately in
mid-September. Most field crops increased in
price during late August and early September.
An advance of 3 cents per pound in cotton
prices during August was partly offset by de
clines at the month-end and in the second week
D is t r ib u t io n a n d T ra d e
—
,-------------- 1932---------------- v ,---------- 1931----------- v
A u g. July June M a y
A u g . July
June
In dexes adjusted fo r seasonal variations
(1923-1925 average = 100)-----1
f -------C a rloa d in g s^
78
72
81
55
52
57
55
T o t a l ...........................
101
97
74
75
74
85
M e r ch a n d is e ............
68
F o r e ig n Trade®
T o t a l t ........................
I m p o r t s ! ....................
E x p o rts
...................
In t e r c o a s ta l T r a d e
T o t a l ...........................
W e s t b o u n d ...............
E a s tb o u n d ...............
45
39
48
45
42
47
46
41
49
77
61
83
78
64
83
72
54
76
49
61
47
45
72
39
51
57
50
54
66
50
65
82
62
59
85
53
73
83
69
R e ta il T r a d e
A u to m o b ile Sales$
T o t a l ......................
P a sse n g e r ............
C o m m e r c ia l . . . .
29
28
48
30
28
50
47
45
71
32
30
59
56
49
97
67
62
110
75
69
124
D e p a r tm e n t S to re
S a le s {
...................
S to c k s § .................
73
63
72
67
74
70
100
70
72
87
Á
1 T***
A ctual Figures
100
87
102
89
C o lle c tio n s #
R e g u la r ............
I n s ta llm e n t . . .
B a n k D e b it s *
A r iz o n a
P h o e n ix
38.6
14.4
39.2
13.4
40.1
13.8
40.4
13.7
41.2
15.9
............
C a lifo rn ia
B a k e rsfie ld .........
B e r k e le y ............
F r e s n o ..............
L o n g B e a ch
L o s A n g e le s . ...
O a k la n d ............ .
P a sa d e n a ............
S a cra m e n to
S an B e r n a rd in o .
San D i e g o ..........
San F r a n c is c o . .
San J o s e ............
San ta B a rb a ra . .
S t o c k t o n ..............
$
14,792
$
24,802
t — First eight m o n th s—\
1931
1932
$
168,622
$
249,164
6,390
11,144
11,855
21,732
504,934
136,968
17,029
34,626
4,907
29,210
630,539
13,877
7,238
11,676
8,966
15,802
20,676
34,804
716,606
169,576
25,484
49,848
7,728
43,703
902,183
23,780
12,182
15,424
59,661
116,183
120,942
216,637
4,560,045
1,322,489
177,512
312,414
49,433
279,500
5,327,066
128,561
74,900
105,239
85,304
133,650
171,932
333,704
6,527,413
1,509,114
246,770
377,591
70,520
388,520
7,912,830
196,194
104,838
140,156
9,913
13,178
82,178
104,126
7,339
10,699
61,595
81,261
..............
3,131
88,893
4,833
130,929
31,243
798,661
43,961
1,153,770
Salt L a k e C i t y . .
7,990
34,962
14,268
53,594
69,5 97
341,095
112,891
477,998
4,283
4,498
122,175
24,397
17,753
5,968
6,244
8,196
172,354
37,216
29,595
10,063
37,644
44,326
1,051,816
224,609
172,430
60,881
54,381
74,533
1,582,330
332,670
269,846
94,870
N evada
O reg on
U ta h
W a s h in g t o n
B e llin g h a m
E v e re tt ...............
i
42.3
15.3
A u g.
1931
A u g.
1932
Idaho
42.7
15.3
{D a i l y avera g e . ° In d e x e s are fo r three m o n th s e n d in g w ith m o n th
in d ica ted .
t E x c lu d in g
raw
silk.
§A t
end
o f m o n th .
# P e r ce n t o f co lle c tio n s d u r in g m o n th to a m o u n t o u ts ta n d
in g at first o f m o n th .
of September. Potato, bean, and hay prices rose
during August, a reversal of the downward
trend which had been apparent for these prod
ucts since early spring. Prices paid for apples,
pears, plums, oranges, and grapes in local and
eastern markets were lower during August,
1932, than in July, 1932, or August, 1931. Quota
tions on canned pineapple advanced on Septem
ber 5. Raisins sold lower in the last half of
August and early September, but prices for
other dried fruits increased. Opening prices for
the 1932 almond crop were substantially the
same as opening prices last year.
Egg prices advanced about 25 per cent at
Pacific Coast markets during late August and
early September. Butter prices remained un
changed. Cattle and lamb prices at Pacific Coast
markets changed little during August, while
hog prices lost most of the gains made during
July. Quotations on wool advanced 25 per cent
during August.
Non-ferrous metal prices increased during
August and early September. Quotations for
lumber in the Pacific Northwest and for crude
petroleum in California were maintained dur
ing August at approximately the same levels as
in July. In late August the retail price of third
grade gasoline was reduced in principal District
consuming markets. Prices for other important
commodities, such as rubber, coffee, silk, tin,
cottonseed oil, sugar, and hides, produced or
used in the District generally increased.
P o r tla n d
r"~
69
Spok ane
T a com a
_______ T o t a l
...............
...............
............ $ 1,788,219
* I n th o u sa n d s o f dolla rs.
$2,562,733 $15,995,279 $22,830,337
70
MONTHLY REVIEWOF BUSINESS CONDITIONS
Credit Situation
The issuance of relatively large amounts of
new national bank notes by national banks was
an important factor contributing to the easing
of credit in this area during August and early
September. Additional banking funds were also
made available by the allotment of a substantial
amount of United States Treasury securities
to Twelfth District banks on September 15. A
considerable part of these securities was paid
for by deposit credit and sold for cash outside
the District before the Treasury had drawn on
the deposit created by the original sale. During
the five weeks ended September 21 there was
little change in time or net demand deposits at
reporting member banks, but a small amount of
gold was acquired for local account. These
factors enabled city member banks to meet de
mands for currency and an adverse balance of
payments through the gold settlement fund
while reducing their borrowings at the Reserve
Bank. On the other hand, country bank bor
rowings from the Federal Reserve Bank of
San Francisco did not decrease as much be
tween July and August as has been customary
in past years, indicating somewhat less than
the seasonal easing of credit in country areas.
S U P P L Y O F A N D D E M A N D F O R B A N K IN G F U N D S
T w elfth D istrict
Ch anges betw een A u gu st 17 and Septem ber 21, 1932
(in millions of dollars)
Supply
M o n e t a r y g o ld s t o c k . . . .
.8
T reasu ry o p e r a t io n s ....
20.2
R e s e r v e b a n k c r e d it ..........— 19.0
D is c o u n t s ..........— 20.3
A c c e p t a n c e s . . . — • .7
2.0
O t h e r ...................
T o ta l
D em and
D em a n d fo r c u r r e n c y ...
M e m b e r b a n k re s e r v e d e
p o s its ..................................
U n e x p e n d e d c a p ita l fu n d s,
n o n -m e m b e r
d e p o sits,
e t c ...........................................-
2.0
.3
2.0
T ota l
During August, District security markets were
more active than in nearly a year, with con
sistent price advances in most active local
stocks.
At this time of year and in immediately fol
lowing months funds usually begin to move
into the Twelfth District from most other parts
of the country as fruits, grains, and other DisF E D E R A L R E S E R V E B A N K O F SA N F R A N C IS C O
(In millions of dollars)
T o t a l B ills an d S e c u r itie s ..........
B ills D is c o u n t e d .........................
B ills B o u g h t ..................................
U n ite d States S e c u r i t i e s ..........
T o t a l R e s e r v e s ..................................
T o t a l D e p o s it s ..................................
F ed era l R e s e r v e N o te s in
C ir c u la tio n .......................................
R a tio o f T o t a l R e s e r v e s t o D e
p o s it
and
N o te
L ia b ilitie s
C o m b in e d .......................................
Sept.21,
1932
185
59
3
123
210
146
235
55.1
Sept. 14, A u g. 17, Sept. 23,
1932
1931
1932
101
206
200
79
27
74
20
3
3
54
123
123
201
207
321
146
144
185
239
52.3
250
52.4
219
79.5
trict crops and products are shipped to markets
outside the District. In accordance with this
normal tendency the balance of payments with
all reserve districts in the United States except
September, 1932
New York was seasonally favorable to the
Twelfth District during the five weeks ended
September 21. Total payments to and by this
District during this period were dominated,
however, by transactions with New York,
which primarily reflect financial operations
having little immediate relationship to the com
modity trade balance of the western states.
These transfers, which do not have the same
seasonal movements as those with other dis
tricts, were unfavorable, resulting in a net loss
of approximately 5 million dollars through
R E P O R T I N G M E M B E R B A N K S —T w elfth D istrict
(in millions of dollars)
f ------------------- C o n d it io n ------- ----------- %
L o a n s an d In v e s tm e n ts — T o t a l . .
L o a n s — T o t a l ...............................
O n S e c u r i t i e s .............................
A ll O t h e r ....................................
In v e s tm e n ts — T o t a l ...................
U n ite d S tates S e cu ritie s . . .
O th e r ^S ecu rities ......................
R e s e r v e w ith R e s e rv e B a n k . . . .
N e t D e m a n d D e p o s i t s ...................
T im e D e p o s its ..................................
D u e fro m B a n k s ...............................
D u e to B a n k s ....................................
B o r r o w in g s a t R e s e r v e B a n k . .
Sept.21. Sept. 14, A u g . 17, S e p t.23,
1932
1931
1932
1932
1,894
1,728
1,735
1,726
1,171
994
1,000
993
244
248
318
245
752
853
749
749
742
732
728
723
411
402
397
366
357
331
330
331
88
85
101
85
557
559
687
571
880
879
984
875
139
147
156
147
171
173
164
198
43
58
21
61
the gold settlement fund (excluding gold im
ported through San Francisco and Seattle for
eastern account) during the five weeks ending
September 21.
Currency circulation in the Twelfth District
was practically unchanged between August 17
and September 21, although there is usually an
increase at that time of year. This stability in
dicates a decrease in hoarding, a conclusion
given support by the fact that the amount of
gold paid to the public during the five weeks
ended September 21 was smaller than the
amount of gold returned by the public, a move
ment in contrast with that in evidence earlier
this year. During this period, however, national
bank note circulation expanded rapidly, replac
ing moderate amounts of other forms of Treas
ury currency as well as of Federal reserve notes.
(See page 72.)
On September 15 the United States Treasury
allotted 43 million dollars of 3*4 per cent Treas
ury notes and 20 millions of 1%. per cent cer
tificates of indebtedness to banks in this
District. These allotments were 6 per cent and
5 per cent, respectively, of the total amount
borrowed through these issues from the entire
country. Banks paid for these securities by sur
rendering 26 million dollars of maturing Gov
ernment obligations and by crediting the
Treasury with deposits of 33 million dollars,
29 million dollars of which remained in the
subscribing banks on September 21. As al
ready pointed out, the sale of part of the new
securities for cash outside the District tended
to decrease the need of borrowing from the
Federal Reserve Bank to provide funds for
individual payments to other districts and was,
September, 1932
FEDERAL RESERVE AGENT AT SAN FRANCISCO
in fact, an important factor in making possible
small reductions in outstanding discounts.
The number of banks borrowing from the
Federal Reserve Bank of San Francisco de
creased less than is customary between July,
the month when country discounts are usually
largest, and August. The number of banks
borrowing during July was the largest since
1924 and the ratio of borrowing banks to all
member banks during that month was larger
than at any time since 1921. From July to the
end of the year the number of borrowing insti
tutions usually decreases about 50 per cent,
chiefly as a result of liquidation of discounts
by country banks.
Principally because of the failure of a group
of affiliated banks in Idaho and eastern Oregon
in late August, the number of banks closing
their doors in this District was considerably
larger between mid-August and mid-September
than in the preceding month. There were 12
failures in Idaho, 3 in Oregon, and 2 in Wash
ington, between August 17 and September 21.
Bank credit in Idaho has declined during most
years since 1920, although there was some ex
pansion during the period from 1925 to 1928.,
Loans and discounts of banks in that state are
71
currently less than 30 million dollars, compared
with an amount approximately equal to the
average for the seven pre-War years, 1909-1915,
inclusive, and a total of 107 million dollars on
June 30, 1920. The extremely high level of 1920
came about largely because of the great expan
sion of agriculture, livestock raising, and min
ing during the World War when credit was
extended by local banks upon enterprises which
proved not to be self-sustaining after the un
usual war time demand and prices for foods and
metals had subsided. Since 1920, the propor
tion of total resources of Idaho banks repre
sented by loans has declined more or less
continuously, while an increasing proportion of
funds has been placed in investments. During
1920 total loans were 104 per cent of total
deposits, compared with 50 per cent at the close
of 1931.
The turnover of shares on the stock ex
changes of the District was greater during
August than at any time since September, 1931.
Price increases were recorded in nearly all of
the locally traded stocks during August and
the first week in September. As at national
markets, however, prices fluctuated irregularly
after September 8 .
R e ce n t Issues o f N a tio n a l B a n k Notes in the Twelfth
F e d e ra l R eserve D istrict
The amount of circulating notes of Twelfth
District national banks has increased consid
erably since July, 1932, in which month Con
gress authorized for a three-year period the use
of all issues of Government bonds bearing not
more than 3% per cent interest as collateral to
secure national bank notes. This form of cur
rency, which is secured 100 per cent by United
States Government bonds and against which a
5 per cent redemption fund in lawful money
must be maintained with the Treasurer of the
United States, may be issued by a national bank
to an amount not greater than its paid in capi
tal. Prior to July, the practical limitation upon
the amount of national bank notes outstanding
was the volume of Government bonds eligible
to secure such notes, whereas the effective lim
iting factor now is the amount of paid in capital
of national banks.
New Twelfth District issues of these notes,
excluding those issued in replacement of worn
notes withdrawn from circulation because of
unfit condition, totaled about 30 million dollars
between July 27 and September 21. During
1929, 1930, and 1931, the net increase in note
liability of Twelfth District national banks was
17 million dollars. The actual amount of new
notes issued during those years was somewhat
larger than that net figure, since some notes
were retired, either because certain banks vol
untarily gave up the circulation privilege, or
because notes of insolvent banks were re
deemed. (When a national bank fails, it must
deposit lawful money with the United States
Treasury to redeem such notes as it may have
outstanding when they are presented.)
N A T I O N A L B A N K N O T E S —T w elfth D istrict
(in thousands of dollars)
N e w N otes N o te Liability
N otes
Issued
Increased
R e tired f
1929
8,100
4,800
3,300
1930
7,000
3,400
3,600
1931
13,000
3,000
10,000
1932-—Jan. 1-June 3 0 . . .
7,400
4,900
2,500
*
J u ly 1-S ept. 21 . . . . , 30,900
____ *
*These? data are a v a ila b le o n ly o n re g u la r ca ll r e p o r t d a t e s ; it is
p r o b a b le , h o w e v e r, th at th e am o u n t o f n o te s re tire d sin ce
J u n e 30 has b e e n less than o n e m illio n d o lla rs, in d ica tin g a
net increase? o f a p p ro x im a te ly 30 m illio n d o lla rs in n o te lia
b ility . fF ig u r e s in this c o lu m n are de riv e d b y d e d u c t in g the
in cre a se in n o te lia b ility (c o lu m n 2 ) fro m th e a m o u n t o f n ew
n o te s is su e d (c o lu m n 1 ).
As shown in the preceding table, the increase
since June 30, 1932, in national bank notes out
standing in this area has been greater than the
net increase between December 31, 1928, and
June 30,1932. At the end of June, total liability
of national banks in the Twelfth District for
outstanding national bank notes was approxi
mately 79 million dollars, compared with a paid
in capital of 183 million dollars. Thus banks
had issued circulating notes to 43 per cent of
72
the maximum permitted by law and had the
legal right to place an additional 104 million
dollars of notes in circulation before the maxi
mum was reached, provided proper security to
serve as collateral were made available. While
paid in capital remained practically unchanged
between June 30 and September 21, during
which period additional security was made
available, the note liability increased to ap
proximately 109 million dollars or 60 per cent
of the total authorized by law.
Because of their larger capital, national banks
in San Francisco and Los Angeles have the
ability to issue greater amounts of notes than
have banks in other parts of the District, and
on June 30, 1932, banks in those two cities
accounted for approximately half the total
national bank note circulation of the Twelfth
District. They had not, however, availed themG A P IT A L A N D N O T E C IR C U L A T IO N O F N A T IO N A L
B A N K S —T w elfth D istrict
of
P ossible
N o te
P ossible P ossible
Issue
Increase D istrict
in N o te s In crease O utst ng
49.7
.5
528
t — In thousands of d o lla rs -----\
C apital
Paid In
A r iz o n a *
1,050
T o t a l .................
C a lifo rn ia
40,500
L o s A n g e le s . . .
1,700
O a k la n d . . . . . .
75,900
S a n F r a n c is c o .
20,543
O th e r .................
Idaho
2,150
T o t a l .................
N ev a d a
1,500
T o t a l .................
O reg on
7,100
P o r tla n d ..........
5,880
O th e r .................
U ta h
500
O g d e n ...............
1,850
S alt L a k e C it y .
625
O th e r .................
W a s h in g t o n
13,300
S eattle ...............
2,000
Spokane
..........
8,265
O th e r .................
182,863
T w e lft h D is t r ic t ..
N o te
Liability
522
32,749
200
44,750
9,905
31.5
.2
43.0
9.5
19.1
88.2
41.0
51.8
1,453
697
.7
67.5
1,242
258
.2
82.8
6,400
3,271
700
2,609
.7
2.5
90.1
55.6
500
1,794
370
0
56
255
.0
.1
.2
100.0
97.0
59.2
5,872
1,989
4,403
78,855
7,428
11
3,862
104,008
7.2
.0
3.7
100.0
44.2
99.5
53.3
43.1
7,751
1,500
31,150
10,638
* D o e s n o t in c lu d e five so u th e a s te rn c o u n tie s
E le v e n th F e d e ra l R e s e r v e D is tr ic t.
w h ic h
of the currency customarily withdrawn for
week-end spending is returned to the banks by
the following Wednesday.
Additional national bank notes issued during
the past two months has to some extent ob
viated the need for further borrowing from the
Federal Reserve Bank of San Francisco and
insofar as it has been in excess of the amounts
paid over the counter to depositors, has proC H A N G E S I N C I R C U L A T I O N O F M O N E Y - T w e l f t h D istrict
(in thousands of dollars)
W e e k ending 1932
T otal
J u ly
1 3 ............ — 5,090
2 0
—
996
2 7 ............ — 3,306
A u gu st
3 ............
7,139
1 0 ............ ........ 240
986
1 7 ............ —
2 4 ............ —
981
3 1 ............
7,579
S ep t.
7 ............
1,185
1 4 ............ — 4,984
2 1
— 2,419
N et ch an ge—
J u ly 7-S ep t. 2 1 . . — 2,619
N a t’ l B ank
N o te s
20
0
0
883
2,477
4,010
7,419
9,482
137
4,047
2,446
30,921
F e d ’ l R eserve
N o te s
— 3,453
—
602
— 2,691
5,848
— 1,649
— 2,827
— 4,530
— 1,037
—
54
— 5,664
— 4,077
O ther
— 1,657
—
394
—
615
408
—
588
— 2,169
— 3,870
—
866
1,102
— 3,367
—
788
— 20,7 3 6
— 12,804
vided the banks with funds to repay rediscounts.
In this manner and to the extent of the new
issues credit of the United States Treasury,
through the issuance of national bank notes
which are secured by Government bonds, has
replaced credit of the Reserve Bank. This
Treasury credit costs the issuing bank less than
does Federal reserve credit obtained by dis-
are in the
selves of the privilege to as great an extent,
relatively, as had other banks. As a result, at
the time additional issues of Government bonds
were made eligible as collateral for note cir
culation, banks in San Francisco and Los An
geles had the option of issuing 75 per cent of
the total possible increase in circulation of this
currency in the District. These comparisons
are shown in the accompanying table.
Since late in July, when the present vol
ume of new issues of national bank notes com
menced, increases in that form of currency have
not only accounted for all of the increase in
total circulation of money in the District, but
they have also displaced to a small extent other
forms of money, including other Treasury cur
rency and Federal reserve notes. Changes in
total circulation and in each of the components
discussed are shown in the accompanying
chart. Maximum fluctuations are not reflected
in this series of Wednesday figures since part
September, 1932
MONTHLY REVIEWOF BUSINESS CONDITIONS
D E M A N D F O R C U R R E N C Y — T w elfth D istrict
Changes cum ulated from July 6, 1932.
counting, since instead of paying the discount
rate (3 y 2 per cent at the present time) there is
only a small annual tax plus costs of printing
and issuing the notes, and loss of interest on
the 5 per cent redemption fund. In the past,
these costs have averaged less than 1 per cent
per year. While all national banks can issue
notes, it is obvious that the incentive to use
the privilege granted by the recently amended
law is greater in the case of borrowing banks,
particularly those already holding Government
securities now made available as the basis for
further issues of national bank notes.
MONTHLY REVIEW
OF
B U S IN E S S
C O N D IT IO N S
I S A A C B . N E W T O N , C h a irm an o f th e B o a r d an d F ed era l R e s e r v e A g e n t
F e d e r a l R e se r v e B a n k o f San F ra n cisco
Supplement
San Francisco, California, September 20, 1932
Vol. XVI
No. 9
SU M M ARY OF N A T IO N A L CONDITIONS
Prepared by the Federal Reserve Board
Volume of industrial production increased
from July to August by considerably more than
the usual seasonal amount, reflecting chiefly ex
pansion in activity at textile mills. Wholesale
prices advanced during August and the general
level prevailing in the first three weeks of Sep
tember was somewhat higher than in other
recent months. There was a further growth in
the country’s stock of monetary gold and a
non-seasonal return flow of currency to the re
serve banks.
Production and Employment. Industrial out
put increased substantially in August and the
Board’s seasonally adjusted index showed an
advance from 58 to 60 per cent of the 1923-1925
average. Activity at cotton, woolen, silk, and
rayon mills increased from the low level of
other recent months by considerably more than
the usual seasonal amount, and there was also
a substantial increase in activity at shoe fac
tories. Output of automobiles, however, de
clined further and production in the steel and
lumber industries showed none of the usual
seasonal increase in August. During the first
three weeks of September there was a slight ad
vance in steel output.
Employment at factories increased slightly
more than is usual at this season. There were
PER
CENT
PER
IN D U S T R IA L P R O D U C T IO N
Index numbers of industrial production adjusted for seasonal varia*
tions (1923-1925 average=100).
large additions to working forces in the textile,
clothing, and leather industries, while in the
automobile, tire, and machinery industries and
at car building shops the number employed de
creased further. Aggregate wage payments in
creased less than seasonally.
Building contracts awarded up to Septem
ber 15, as reported by the F. W . Dodge Cor
poration, indicate that for the third quarter the
total value of contracts will be about the same
as for the second quarter, whereas usually
awards for the third quarter are smaller. Cur
rently, contracts for public works are a con
siderably larger part of the total than they were
at the beginning of the year and residential
contracts are a smaller part.
Department of agriculture crop estimates
based on September 1 conditions indicate little
change in prospects during August. Indicated
crops of wheat and tobacco are considerably
smaller than in other recent years, while the
corn crop is the largest since 1925. The cotton
crop is estimated at 11,300,000 bales, a decrease
of about 6,000,000 bales from the large crop of
a year ago.
Distribution. Volume of merchandise and
other freight handled by the railroads increased
seasonally during August, while during the cor
CENT
FACTORY
EM PLO YM EN T AN D PAYROLLS
Indexes of factory employment and payrolls, without adjustment
for seasonal variations (1923-1925 average=100).
responding period a year ago no increase was
reported. Department store sales of merchan
dise increased from July to August by some
what less than the usual seasonal amount.
Wholesale Prices. Wholesale commodity
prices advanced from 64.5 per cent of the 1926
average in July to 65.2 per cent in August,
according to the monthly index of the Bureau
of Labor Statistics. During August, prices of
many leading commodities, including textile
raw materials and finished products, wheat,
reserve balances, which at the present time are
more than $300,000,000 in excess of required
reserves. Reserve bank holdings of United
States Government Securities and of accept
ances remained practically unchanged during
the four weeks ending September 14, while the
total of reserve bank credit declined by $43,000,000 through the reduction of discounts for
member banks.
Loans and investments of reporting member
banks in leading cities showed little change be-
PER CENT
— y
rAL
\
s
R E S ID E N T IA L
_
1927
1928
1929
. . . i ____________ i .
1930
.
1931
:
1932
V A L U E O F B U IL D IN G C O N T R A C T S A W A R D E D
In dexes based on th ree-m on th m oving averages o f F . W . D o d g e data
fo r 37 Eastern states, adjusted for seasonal variations
(1923 -1925 average = 100).
hides, non-ferrous metals, sugar, rubber, and
coffee, increased substantially. In the first half
of September there were declines in the prices of
many of these commodities, while prices of wool
and woolen goods, cattle, and hides advanced.
Bank Credit. During recent weeks further
growth in monetary gold stock, a return flow
of currency from hoards, and new issues of na
tional bank notes have resulted in additions to
the reserve funds of member banks. These
banks have employed a part of the funds in
further reducing their borrowings at the re
serve banks and have accumulated a part as
F E D E R A L R E S E R V E B A N K C R E D IT A N D P R IN C IP A L
F A C T O R S IN C H A N G E S
M on th ly averages o f daily figures. Latest figures are averages
o f first 21 days in Septem ber.
tween the middle of August and the middle of
September. A further decline of more than
$150,000,000 in loans by banks outside New
York City during the past four weeks was offset
in large part by continued increase in invest
ment holdings, chiefly at member banks in New
York City. There was a considerable growth in
deposits of reporting member banks reflecting
in part larger balances held by city banks for
the account of other banks.
Money rates in the open market remained
unchanged at low levels during August and the
first half of September.
@FedFRASER