| Show BUSINESS ACTIVE DURING FORC PART OF YEAH following Is a resume of business conditions of the west tor the first halt of the year 1929 written by isaac newton chairman of the board and federal reserve agent federal reserve bank of san francisco business in the twelfth federal reserve district was more active during the first six months of 1939 than during the same period of 1928 prices of many commodities particularly farm products important in the district s commerce have advanced during the past month indicating that despite reduced yields of some crops agricultural purchasing power in the aggregate may not be seriously reduced as compared with recent years the credit situation which occasioned some concern during the early part of the ear improved during june and early july the advance of interest rates was halted bank reserves increased and the amount of reserve bank credit in use approached the lowest level of several years notwithstanding the increased accommodation extended to agricultural sections industry operated at record levels during the early months of 1929 but slackened its pace considerably during june despite a record breaking production of petroleum and an increased cut of lumber there were sharp recessions in building permits issued and in construction contracts let during june as compared with large totals of earlier months of the year retail and wholesale trade have been active during the past six months bales of new automobiles exceeded previous records throughout the halt year the volume ot water borne traffic has declined steadily since early 1929 but boak it and the volume ot foreign trade during the past six months were greater than during the first six months ot 1928 in june the downward trend ol 01 prices which had been evident since the first of the year was reversed largely as a result of advances in on agricultural products lumber prices remained firm discounts at the federal reserve bank of ban francisco fluctuated irregularly during june and early july without showing much net change until the week ended july 17 when they dropped sharply recent increases in borrowings by country member banks response to the seasonally expanding credit needs of agriculture were offset by reduced borrowings of city banks the decrease in reserve bank credit extended to city member banes was coincident with a sharply increased demand for currency and the member banks met the situation by sales of investments reductions in loans securities and tran scra of funds into this district from other sections of the country the reserve bank further reduced its holdings of acceptances and government securities |
