Show BUSINESS conditions OF WEST summarized by isaac B newton chairman ot the board and federal reserve agent federal deserve bank ct san francisco june 20 1929 in the twelfth federal reserve district industry and trade were active at high levels during may 1929 and there was some increase in commercial demand for bank credit the agricultural ri outlook continued to reflect unfavorable weather conditions and persistent declines in prices of agricultural products and their manufactures during early may there was some improvement in the credit situation and member banks reduced their borrowing at the reserve bank during late may and early june however there was evidence of considerable tightening commercial loans of reporting member banks increased further their deposits were reduced the ratio of loans to deposits rose interest rates hardened and borrowing at the reserve bank rose from the low levels established in mid may the expansion in commercial loans during recent months has been partly seasonal in character and has reflected more active trade and employment retail and wholesale trade and sales of new commercial automobiles and merchandise increased during may traffic and sales of new passenger automobiles while slightly smaller than in april did not show full seasonal declines nearly all lines of trade were more active than a year ago industry was well maintained at high levels but scattered evidence of slowing up appeared during may manufacturing and other activities arising from the processing and handling of agricultural products particularly fruits are now getting under way crop production forecasts pre 1 pared by the department of agriculture indicate that supplies of raw materials for these activities are less plentiful this year than last or greater than seasonal declines in activity appeared in other basic industries lumber nonferrous non ferrous metals and building which have alth the exception of building been operating at or near record or capacity levels during recent months the volume of employment increased during may as compared with april re fleeting chiefly expansion in seasonal connected with the production harvesting and processing of agricultural ri products crowth of grain fruit and field craps and of feed on livestock ranges has been slower than husal during the past three months principally because of subnormal temperatures unusually ally heavy rainfall in the three coast states during recent weeks has dilso been injurious particularly to lany fruit crops |