| Show REVIEW OF BUSINESS conditions by john perrin federal reserve bank of san francisco production of basic commodities and employment at industrial establishments lish ments all over the country decreased in july and there was a further decline lit in wholesale prices the distribution of goods as indicated by railroad glit shipments was vas maintained at record levels and sales of mer merchandise chandice though show the usual seasonal decline continued relatively heavy the volume of business transacted throughout it the Tel twelfth fth district luring during july was vas considerably larger than a year ago some falling oft off was reported in comparison with figures of tile the late spring of this year but such a decline is a normal seasonal occurrence during the summer months it is not clear to what extent the decline at his time is purely seasonal and to what extent it if any ally it is duo due to actual curtailment of business activity but reports indicate that most of the principal industries of ef the district were able during the month to adi admust production to current demand with wi th out greatly reducing output from the record levels of the spring spring moll months alis of this year trade at retail as indicated by sales of 35 department stores in 7 cities was per cent greater in value during july 1923 1911 than during july 1922 the largest increase as compared with the corresponding month a year ago re ported since march 1923 stocks of merchandise held by these stores are slightly larger than one year ago but the rate of turnover is more rapid than it was at that time figures of the number and liabilities of business failures are now at normal levels the number of failures in the district was less in i n I 1 july than in june 1923 and liabilities 1 were lest less than in any month since may 1921 excepting june 1923 1523 production and shipment ot lumber declined during july but the amount of new business entered on the books of reporting mills ed tor for the first time since april the output of lead silver and zinc was noticeably curtailed and although figures of copper production showed no decline from the previous month reports of a reduction in output became increasingly frequent toward the close of the period shortages of certain classes of labor which seemed possible a month ago did not materialize during july laborers are everywhere reported full fully y employed promise of bountiful yields of most of the princ principal loal cro crops pg of the district has been contained in reports received from the harvest fields the wheat crop cerop which Is now moving to market is the largest which has been produced in the dis wet in recent years present estimates forecasting a total yield of lG bushels compared with nith bushels produced in 1022 22 bushels in 1921 and bushels in 1920 yields of the important fruit crops of the district are well up to the average of previous seasons and transportation facilities for their rapid movement to tn market marke tare arc better than they havo have been tor for some years past I 1 I 1 the general trend ot of all prices was downward during july the prices of most of the principal ag ri cultural products of the district particularly wheat and california fruit sharing in the general movement prices of non agricultural products in many cases reached the low point of the present downward movement luring during the month and turned upward during its closing days or in the first weeks of august prices of lumber lead and zinc were included in this latter category building materials prices according to the index number of the united states department of labor decreased per cent during the month and are now GS per cent below the peak of april 1923 although still per cent higher than one year ago loans of reporting member banks of the district increased by 16 during the four week period ending august esth and their deposits declined by during the game anre period these movements reflect to a large extent the credit needs of the district in harvesting and moving its crops total discounts of the federal reserve bank declined luring during the tour four weeks ending august and at on the latter date were above the low point of january 10 1923 investments of the reserve bank have declined since the first of the year by a greater amount than the increase in discounts so that total earning assets were less on august than on january |
