| Show BUSINESS conditions IN TWELFTH RESERVE DISTRICT by john perrin penin pen in chairman of the board and federal resene agent federal Re deserie serie bank of sau san francisco california in november 1925 there were five sundays five saturdays and three holidays the usually small number of business days adds difficulty to statistical analysis of commerce and industry available data however indicate that improvement in business conditions which has been in progress since midsummer mid summer continued during the month the improvement has recently been chiefly reflected in commodity markets and prices with few exceptions have moved upward the general price level according to the united states bureau of labors index number of wholesale prices advanced from 1519 in october to 1527 in november 1923 prices the latter figure being 52 per cent above the low point of 0 last june and 04 per cent above the figure tor for november a year ago of particular importance in this district was the further rise in prices of general farm products the larger part of the districts crops now having been sold on a steadily advancing market at prices more nearly ap approximating the general level ot of all prices than t has las been the case during the past I 1 our years the upward movements of prices during november was not confined on tined to agricultural commodities nd foods however nonagricultural agricultural non commodities participating in the movement more generally than at any time since its beginning five months ago productive activity was well maintained during november the mines of 0 the district were operated on full producing schedules and an increase i mount ot of new development work was undertaken expansion in the demand tor for lumber at a time when weather conditions were forcing curtailment ot of output has bas resulted in material increases in the volume of unfilled orders held by lumber mills less than seasonal activity in the hour flour milling industry was reported during the mouth month the small supply and high price ot of wheat hav ng discouraged production ot of flour flow of 0 petroleum in california has in excess ot of immediate demands deman 13 continued to decline but at a slower rate than the decline in shipments so that stored stocks reached another record figure barrels on december 1st ast activity in building construction declined by less than the usual seasonal amount from october to november and the number and value of building permits taken out in anticipation ot of future construction st work has been large the values of building permits issued in los angeles and san francisco wore were and respectively in november 1924 compared with and in november 1923 it if figu figures for los angeles be excluded the value of permits issued in principal cities ot of the district was per cent greater in november 1924 than in november 1923 although not all of 0 the cities included reported increases the volume ot of employment in principal industries of the district declined seasonally during november and continued less than one year ago when unemployment figures were unusually small email signs of increasing business activity ity present in commodity markets ind and in industry were lacking in the field beld ot of distribution during novem her ber the value of 0 trade at wholesale compared unfavorably with the ti gures agures tor for november 1923 eight ot of the eleven lines of trade which report the value of their sales ld 10 this bank showing a decline over the year period sales at retail as reflected in sales of 0 35 department stores in seven cities of the district were svere also smaller n value than one year ago and the indicated rate of stock turnover was below that ot of the previous year the lack of marked improvement pro in distributive activity I 1 is not surprising however when it la Is remembered that the midsummer mid summer depression was not so acute in oils this as in other branches of 0 business and that improving business conditions are normally reflected last in the market for consumers goods credit requirements tor for financing current business operations have changed little during the past month and reporting member banks have again found it advantageous to employ a 11 large part parl ot of their their 2 anable funds in the investment market maret As a result of an increase of in investments ot of 66 reporting member banks in principal cities ot of the district their total loans and investments reached the highest figure on record on december at the same time their borrowings from the federal reserve dank bank declined to the lowest point since a separate report ot of this item was first made in 1919 total earning assets of the federal reserve bank increased during this period however to the highest figures ot of the present year additional purchases of acceptances in the open market more than offsetting declines in total discounts and in holdings of government securities total discounts remained at the lowest levels since 1917 interest rates in the presence of a supply of 0 funds in icess of current commercial der demand bernand nand tor for credit have remained relatively low |
