Show BUSINESS FEDERAL nil I 1 ST R I 1 C T by john perrin chairman of the board and federal reserve agent federal reserve bank of san francisco california july 1926 fluctuations in volume ot of trade during june were largely seasonal in character and general business activity in the twelfth federal reserve district continued at the lenel lel of the preceding daree months the business record for the halt year ending june 30 1926 when compared with the record tor for the first six months ot at 1925 showed an increase in trade volume and business activity which exceeded the normal expectation based on the growth of population and development of natural resources ot of the district distri cit banking statistics at the close ot of the halt year reflected a strong credit situation crop conditions and prospective yields at mid july were with few exceptions better than in 1925 a favorable circumstance partially offset by the slightly lower level of 0 prices tor for agricultural products this year industrial du activity fu increased ceased Geason seasonally ally during jw jaae ne and as indicated by figures of production and employment was acore the level of june 1925 value of building permits issued during in june in 20 principal cities showed showed a larger than seasonal increase as compared with may hay but was 73 per cent less than in june 1925 the value ot of building permits issued in these cities during the first six months ot of 1926 was slightly smaller than the value of oe permits issued during the first six months of any ot of the three preceding years during june 1926 reporting lumber mills of four associations in this district cut more than million board feet of lumber the largest output reported for any single month in the last tour four years figures of production shipments and new orders received were all above those ot of both way may 1926 and june 1925 the increases averaging approximately 4 per cent as compared with the rp previous month an and d 10 per cent as compared with a year ago during the first six months of athis year activity in the lumber in aurtry as reflected by reported production shipments and orders received was more than 10 per cent above the level of the same period of 1925 a year of record activity in the lumber business on the pacific coast during tile the first halt half of 1926 orders rooe received ived exceeded shipments which in turn exceeded production stocks of lumber at mills were reported to be smaller on june first than on january first 1926 production of petroleum in california increased slightly during june but daily averalle aver alge production was less than in june 1925 production of flour as reported by 16 milling companies in this district increased seasonally during june and as in april and may approximated the five year 1921 1925 average of prod production action stocks of both flour and wheat held by millers at the end of june were below the five year average tor for that date the districts district Is canned fruit industry orpe operated rated at high seasonal levels during june and early july present indications are that the total fruit pack will approximate the record pack of a year ago both domestic and foreign markets tor for canned fruit sare reported to have been active during the past year and the present season has witnessed a considerable volume of sales tor for delivery this banks index numbers of bank debits which reflect changes in business activity in the district advanced slightly during daring june 1926 the index adjusted for seasonal variation stood at 1919 average equals or 8 per cent higher than in june 1925 la in 19 of the 21 xe reporting porting cities debits to individual accounts bank debits were larger in volume during the ole first six months of 1926 1026 than th during hie he an first six months of 1925 and an d the tl total for the 21 cities showed an increase of per cent in the later year the retail trade index constructed by this banic declined during june as compared with may the decrease was less than that which usually occurs at this season of the year however and the index when adjusted for seasonal movements advanced seven points or 48 per iper cent to 1539 1919 equals reported figures indicate that sales at retail were 38 per cent larger in value during the first six months of 1926 than during the same period of 1925 total value of sales at wholesale reported ported ro by firms in eleven lines of business was 20 per cent greater during june than during june jime 1925 nine of the eleven blines for which segregated data are aval available lable showed increased sales over the year period during the first halt half of 1926 total sales salea of these firms were 28 per cent greater than during the first halt ol of 1925 general wholesale prices continue to fluctuate at a a level approximately 50 per cent above that which prevailed in 1913 during june tho the bureau of labor statistics index of wholesale sale prices advanced slightly standing at 1523 1913 prices equals 1000 compared with 1517 1617 for may 1926 1026 and 1574 for june 1925 the Department of agricultures Agri cultures farm price index ro bained at during the past month while the bureau at 0 labor statistics index of nonagricultural agricultural non comm commodities declined from 1602 to 1599 causing the ratio between these two indexes an indication of 0 the purchasing hating power ot of farm products to advance from to A year algo this ratio was 90 total loans and investments of reporting member banks in this district declined slightly during the five weeks between june ath and july utah but on the latter date data were 88 milmon or 56 per cent above the level e ot at one year ago the volume of commercial loans remained relatively constant during the five week period the principal declines being in loans on securities and in investment holdings net demand deposits at reporting banks have increased during recent weeks while time deposits have decreased slightly this movement was contrary airy to that which has prevailed during the past year in which time deposits have increased by 85 ipar cent and demand deposits have declined by 19 per cent total earning assets total bills and securities held on the federal reserve bank ot of san francisco fluctuated about the level during juno june and early july the net movement tor for the period being of 0 or 8 per cent on july earning assets of the bank were nearly one fifth larger in amount than one year ago in response to the usual increase in currency demands at the close of the half year circulation of federal reserve notes of the federal reserve bank of san francisco rose from on june to on july ath by july volume of circulation had declined to a figure 43 per rent cent be low that of a year previous interest rates at commercial bank 4 of 0 the district were practically unchanged during the month |