Show BUSINESS UNU fath FEDERAL RESERVE N V to U by john perrin chairman of the boa board rid and federal reserve agent federal reserve bank of san francisco california june 1926 during may alay general business and trade in the twelfth federal reserve district continued at levels approximating those of march and april and exhibited substantial growth as compared with a year ago agrical gurail activities were further advanced ad vinced than Is usual at this season ot of the year a result ot of favorable weather conditions during previous months commercial demand for credit declined slightly A high level of 0 product production Jon was maintained during the month seasonal declines in some forms of 0 manufacturing activity were offset by seasonal increases in outdoor construction the usual surplus of 0 coni irion labor which accumulates in the district during the winter months is gradually being absorbed by seasonal expansion in agricultural operations and private and public works the present volume of 0 business in the lumber lui riber industry is well above that of last year but prices and profits are reported to be unsatisfactory to lumber producers mineral production in the district is also active but as in Che lumber umber trade prices are relatively low and profit margins narrow seasonal declines in flour milling were reported by principal milling companies during may lay output during the month the five year 1921 1925 average tor for may building statistics for may alay confirm the evidence offered by april figures of a slight diminution in building activity value of building permits issued in 20 principal cities declined per cent during may 1926 as compared with april 1926 a greater than seasonal decrease eaise and was per cent its less s than la in may Alay 1925 the amount of bank debits an index of trade volume in principal cities of the district was Em smaller aller by 63 per cent in may than ithan in april 1926 but when account Is taken of the usual seasonal vaT variation lation between the two months the figures reflect ct a slight quickening of trade As comi pared with may alay 1925 ani am increase of 10 per cent was recorded this banks index of retail trade tirade based on sales of 32 large department stores showed an increase ric Tease in may as compared with april it if seasonal variation be eliminated however and relative activity rather than volume of trade be considered there theT ewas was a decline in may as compared with april value of sales of wholesale firms in 11 lines of was 15 per cent greater durin during may 1926 than during may 1925 changes in trade at wholesale tram from april to may were largely seasonal in character the me united states bureau of labor statistics index of wholesale prices stood at 1517 1913 prices equal al for may 1926 compared with 1511 for april 1926 and 1552 lor for may 1925 the latter figure being the low bior tor th that year the slight advance in the index during may taken in conjunction with more recent re cent advances in available weekly indexes ot of prices affords come evidence that the ithe price decline which began last autumn lias has been checked at least temporarily the department of oe agricultures Agri cultures farm price index declined from ite during may while tho the bureau of labor statistics wholesale price index of non agrical tural commodities advanced slightly these diverse movements caused the ratio between tho the two index numbers an indication ot of the purchasing power of farm products to ito decline froidl frota to the credit situation remained easy during may total loans and investments of 66 reporting member banks in nine principal cities declined slightly after reaching a peak on may ath etli the chief decrease being in the itam loans on securities some check was given the rapid downward movement 0 of demand deposits which during earlier months of the year had evidenced a fuller use of funds by con coia meree merce and in industry the upward movement of oc time continued volume of discounts at the reserve bank declined during the tour four weeks ending june and as security holdings changed little total earning assets declined by approximately the same amount as did dis discount disco coun s the discount rate continued at 4 per cent the official rate established on november 23 1925 |