OCR Text |
Show Isaac B. Newton, Federal Reserve Agent, Reviews Business Conditions During September, business in this District continued generally active,' and the amount of bank credit In us expanded substantially. Records of industry and trade were not fundamentally funda-mentally different from these of the two preceding months, although there was some evidence during September of a decline in production and in primary pri-mary distribution. Dry weather in many of the agricultural areas of the District, persistence of the existing disparity between production and consumption con-sumption in the petroleum and lumbei industries, continuance of the decline in building activity and a general downward movement of commodity prices, may be listed as unfavorable factors in the business situation. As marketing of the Districts crops has progressed, evidence has accumulated accumu-lated that total agricultural income this year will approximate that of 1928. Continued lack of rainfall over much of the District has retarded late maturing crops and the growth of feed on livestock ranges, and has interfered with the planting of fall-sown grains. Industrial output declined slightly during September but, with the exception ex-ception of building, was in larger volume vol-ume than in September, 1928. Sales at retail and at wnoiesale, sales ol new automobiles, and waterborne m-tercoastal m-tercoastal trade of the District were moderately larger than a year ago. Sales at retail also increased as com- pared with the preceding month, it allowance be made for the usual seasonal sea-sonal change in such sales. Freight carloadings on railroads of the District Dis-trict were fewer in number during September, 1929, than in either August, Aug-ust, 1929, or September, 1928. Commodity Com-modity prices moved to lower level?, during September, following the trend noted during the two preceding months. The declines were not large, but were widely distributed. The total amount of credit extended extend-ed by member banks of the District increased substantially during Sep-r.ember Sep-r.ember and the first week of October. Available figures indicate that thi volume of commercial loans of member mem-ber banks declined during the month, but that customers' demands for additional addi-tional securitiees increased. The funds needed to meet the Increased demand for loans were obtained largely large-ly by reductions in the investment accounts ac-counts of the banks, although there was also an increase in their borrowings borrow-ings from the Reserve Bank. Holdings Hold-ings of bills discounted and of securities se-curities at the Federal Reserve Bank of San Francisco during September and early October, reaching a seasonal season-al peak in the second week of the later month. A large proportion of the acceptances purchased during this period originated within the Twelfth District, the remainder, particularly par-ticularly during recent weeks, being purchased in the New Yrk market. |