| Show BUSINESS conditions IN TWELFTH FEDERAL RESERVE DISTRICT by isaac B newton chairman of the board federal reserve bank ban k of san francisco A continuance of previously noted declines in industrial activity seasonal expansion in trade and maintenance of sound credit conditions characterized the business situation in the twelfth federal reserve district during crop aror yield and marketing statistics w which ich became available luring during the month furnished A faither evidence that generally satisfactory financial returns would be ba realized from the keais operations in agriculture and livestock raising the incidence of demand denland for credit has tended to shift from froin agriculture and industry iii lutr to fiade luring during recent weeks commercial loans of leport ing member banks arc not now so I 1 large in amount as tile they were a year ago but it is probable that industry ind and fiade have been accommodated to some extent by the proceeds of loans on securities which are in lec ord volume demand deposits at le ie porting banks have inci eased since the midsummer mid inid summer low point and growth of tinie time deposits has continued so that total deposits of these banks on december Da cember 14 17 million dollars or 09 per cent baiger than six months ago and 79 million collais or IG 16 per fent ent f larger than a year ago As total loans of the banks increased but 4 million dollars over the year most of this in deposits is reflected red acted 7 a substantial rise in in in investment ji Aings hi dings more extended use of discount privileges at th the rai solve seive bank has accompanied the november I 1 cambel D expansion in domand demand for credit but the amount of federal deserve funds in use is still i pali liveli bev small discount holdings if tho the federal R reserve serve bank of si sin ii francisco birre 0 from 29 ni nallon dollars to 14 44 million collais during durig the tha four weeks cadd december 14 1097 P and wre w re 16 pr cent lair on oil that date than one year ago interest rates rate for commercial paper li rd end slightly during the past month 1 reported data on builder build mr ivnel r inq ini mining anti and flour milling show sli slight lit declines in activity during N november 1 ve as compared with one month ago and one year ago figures of industrial indu indus employment tend to confirm this evidence of a moderate te decrease in production distribution and trade on tile the other hand and hive been well maintained luring during remt re mt months at levels equal to or slip lity above those of a year ngo izo this banks index of retail department dep rement store sales 1923 1925 daily average stood at in november 1927 in Oct october olyar 1927 and in november 1926 a lowance allowance bing made for seasonal fluctuations our seasonally odi index of ot 1923 1925 1026 monthly average stood at in 1927 and 1926 the figure for octo 1 her ber 1927 was 90 96 the comparison with oner one year raar ago makes no allowance for a decline of about 2 per er cent in the general level of wholesale prices duling the past year the generally satisfactory outcome of the agricultural veal ha has been marred red only by the inai marketing mai difficulties of certain groups of producers produce notably some of tile the deciduous fiu t growers of the pacific coast states and the potato grobeis of idaho it I 1 evaluating the results of the turn tural year it should h not nota 1 tiff oll IT farmers of the district will not be obligated to use so largo large a tion ot of the years financial returns return il liquidating old debts as has been necessary during each of the p i t years yean |
