Show conditions OF FEDERAL RESERVE DISTRICT by john perrin chairman of the boa board rd and federal reserve agent federal reserve bank of san francisco calif february 1926 general business activity in the twelfth federal reserve district continued at relatively high levels during january 1926 trade and industry were seasonally less active than in december 1925 but it is estimated that goods were produced and distributed in larger volume than in january 1925 there was an ample supply of 0 credit available and demands upon the federal reserve bank of 0 san francisco were seasonally low debits to individual accounts bank debits at banks in 20 principal clearing house centers declined slightly during january 1926 but the decrease was less than the usual seasonal decrease for or that month this banks index ot of bank debits adjusted for seasonal variations advanced from in december to ja in january 1926 1996 1919 average equals in january 1925 it stood a al trade at retail as reported by 32 department stores in se seven 1 vena principal cities of 0 the district was 49 per cent smaller in value during january 1926 than during december 1925 this decrease colip compares ires with a usual seasonal decline from december to january of approximately 41 per cent this ranks banks index ot of department store salos sales adjusted for seasonal variations stood at US in january 1926 in december 1925 and in january 1925 stocks ot of goods held by reporting stores increased 13 per cent in value during january and on january 31 1926 were 46 per cent greater in value than on january 31 1925 value of sales of wholesale firms in eleven lines of business decreased seasonally during january 1926 but was OS 08 per cent greater than in january 1925 increased sales of six of the eleven reporting lines offsetting decreases la in the remaining five lines the general wholesale price level was 25 per cent lower during january 1926 than during january 1925 value of building permits issued in 20 principal cities of the district declined per cent during january 1926 as compared with december and was 73 per cent less than in january 1925 the usual seasonal decrease from december to january is estimated at per cent large gains in value of 0 permits issued in san francisco and beatle during january 1926 as compared with january 1925 were more than offset by decreases in fresno los angeles and portland during january 1926 lumber production at reporting mills ot of tour four association in this district was less than during december 1925 and january 1925 by per cent and per cent respectively and was smaller in volume than in any month since february 1923 volume of new orders received during the month was 28 per cent less than volume of 0 orders booked during december 1925 but was per cent greater than in january 1925 orders received during january 1926 exceeded shipments which in turn exceeded production so that stocks of lumber held by mills decreased and unfilled orders increased average dally daily production of pe in california decreased slightly as compared with december 1925 but was 17 per cent larger than in january 1925 indicated consumption increased during january 1926 tut but was less than production and stored stocks reached a new high point of barrels on january seasonal declines in flour milling activity continued during t the he month output of 0 16 representative milling companies of the district which report regularly to this bank was approximately IS 18 per cent smaller in volume than during either december or january 1925 As compared with the live five year 1921 1925 average tor for january production during january 1926 showed a decline of per cent I 1 milers stocks of 0 lour flour increased during january but on february 1st ast were per cent smaller than the five year average of stocks held on that late date reported holdings of 0 wheat at the mills decreased per cent during january but on february 1 1926 they the also were larger than the five year average holdings on february 1 mild winter weather and ample rainfall were reported from most parts of the twelfth federal roseno district during the last two weeks of january and the first weeks of F february and seasonal measurements of rainfall at mid ald february approximated normal in the important agricultural areas of the district districts As a result there has been a measurable improvement in conditions of tall fall sown grain crops of livestock pastures and ranges and in the whole physical aspect of 0 the agricultural situation livestock ot of the district generally are reported to be in good condition in the early lambing sections particularly calif lambing is proceeding satisfactorily that stability in the general price level which characterized the year 1925 continued during january and early february of 1926 the index of prices ot of commodities at wholesale prepared by the united states durea bureau ot of labor statistics stood at 1560 for or january 1926 compared with 1563 for or december 1925 1604 tor for I 1 Xii august gust 1925 the recent high point and 1600 for or january 1925 all of 0 the groups comprising the index except fuels building materials and miscellaneous commodities showed the price declines during january 1926 During November and december 1925 and january 1926 prices ot of agricultural and of 0 nonagricultural agricultural non commodities moved together and the purchasing power of farm crops remained unchanged at 87 august 1900 july 1914 monthly average equals this was in contrast to the movement of 0 those two series during september and october ot of 1925 when prices ot of agricultural ri commodities declined and prices ot of n agricultural nonagricultural non on agri cultural commode were unchanged the result being a decrease in purchasing power ot of farm arm products from 93 in august 1925 the highest point reached since june 1920 to 87 in november total loans of 0 reporting city mem her ber banks declined during january and increased during the early part ot of february normal seasonal movements 1 ants on february 10 1926 these loans boan s amounted to and were or per cent larger than a year ago investment holdina holdings of 0 reporting banks increased and their borrowings from tho the reserve bank decreased during the mouth month evidence of an abundance of available funds there was a seasonal decrease in demand for credit at the federal ne ile serve bank of san francisco during the five weeks ending february 17 1926 and holdings of 0 all classes ot of bills and securities declined currency demands also decreased seasonally during the period and volume of federal reserve notes in circulation was less by 40 per cent on february 17 than on jan january uary 13 As a a result of the above movements the banks holdings ot of reserve cash increased from to nearly and the reserve ratio rose from to |