Show Business Condi Conditions ons in the F Federal d ral Reserve District r rBy 1 i By John Perrin Chairman of oC o j of the Board and Federal Reserve Agent Federal Re- Re ReI Reserve Rc I serve serve Bank of San Fran Fran- Francisco Francisco Francisco cisco June 20 1925 decline in moderate There was a dur- dur during dur dur- during during business activity in this district ing Slay May Ia 1925 In that month as in previous months of the year however activity in business was about estimated estimated estimated normal levels Industrial out out- output out output I put increased seasonally during May and for the first time this year was larger than during the corr corre corresponding month of 1924 1 Increased activity in industry has been accompanied accompanied accompanied by increased employment There was was- little cha change e in the bank bank- banking banking banking ing and credit situation during the month and bank credit continued a- a at low rates Debits to individual accounts at banks bank debits in 21 principal cities of the district were 32 per cent smaller in volume during May 1925 than during April 1925 a decline slightly greater than the normal sea sea- seasonal seasonal sea seasonal decrease of 27 per cent As compared with May 1924 the figures for Ma May 1925 showed an increase of 50 per cent which approximates the normal annual rate of growth for this district Value of building permits issued in 20 prin principal cities declined by 71 per cent during May 1925 as com com- compared compared compared pared with April 1925 a decrease slightly greater than that which us- us usually usually us usually occurs at this season of the year ear Compared with May 1924 val value value value ue of permits issued during l Ia May 1925 was greater by per cent A large part of the increase as compared compared compared ed with last year was reported from rom Los Angeles where value of building permits at for May 1925 was O or per pel cent larger larger than for May 1 1924 Building costs including labor and materials chang chang- changed changed changed ed little during April and May and at the close of the later month were about 25 per cent lower than a year ago Production of lumber increased sea seasonally seasonally seasonally durin during May lay and exceeded I both shipments and new orders received I ed by the mills Shipments Were here 1 larger in volume during M May lY y than durin during April but sales orders de- de declined declined de declined slightly Lumber stocks at the mills and in the hands of retailers cre were reported to be below normal Volume of production of principal non nonferrous nonferrous nonferrous ferrous metals changed little durIng Ia 1 May 1925 as compared with April 1925 but was generally larger than in in May 1924 Daily average production production tion of petroleum in California I increased sed 14 per cent during May 1925 as asI I compared with April 1925 the first such increase reported since last Dec Dec- December December Dec December ember Consumption increased by 07 per cent during the montha month a and nd con con- con l less ss than production Stored stocks amounted to bar bal balI barrels bar barrels I on May 31 1925 the highest fig fig- figure fig figure ure er e reported The flour mulling industry of this district which has been operating at low levels during recent months continued relatively inactive during May The months month's output of IG 16 companies for which this bank has been keeping the record I I since August 1920 was the smallest ever reported Total production at atI I barrels was per cent nt smaller than the year five-year average I for May More flour was sold than was milled during ng t e month an and i stocks of or flour held by the mills on June 1st were per pel cent smaller than on May 1st and 8 8 1 1 per pel cent centI I smaller than one year ago Millers I stocks of wheat on June 1st were low lower lower er than at any time since January 1920 Trade at retail according to this banks bank's of of- sales of 32 depart ment stores in 7 principal cities of the district was larger in volume n May 1925 than in April 1925 or orMay orMay orMay May 1924 1024 The increase as compared compared compared ed with the preceding month was less than that which usually occurs at this season of the year however and an index of or val value e of or sales ad- ad adjusted ad adjusted juste for seasonal variations declined de- de declined de declined from 1919 monthly aver aver- aver age in April to in May A year ago this index stood at Dur During During During ing May trade at wholesale continued I less active than trade in other distri distri- enterprises snowing marked improvement over recent months Value of sales at wholesale as reported by firm firms in eleven lines of business was 52 per cent greater during May l 1925 than dur- dur during during dur during ing May l 1924 During March and April 1925 increases in value of sales as compared with a year ago were less than 2 per cent Values f sales in six of eleven reporting lines Jines was less during May l 1925 then dur- dur during during dur during ing l Ia May 1921 while five lines Jines show show- showed showed showed ed increased sales over the year per per- period period per period iod T |