The border vidette., 1931-09-26
BUSINESS CONDITIONS IN THE
18TH FED. RESERVE DIST.
(By Isaac B. Newton)

increase by the usual amount
,during August. Industrial pro
duction. which ordinarily ex
pands moderately, remained un
changed and the distribution of
commodities also declined after
seasonal adjustment. Average
commodity prices remained sta
tionary for the third consecutive
month. Memb Der banks demand
for credit at the Federal Reserve
Bank of San Francisco aud the
circulation Of currency in the
District averaged higher during
the four weeks ending Septem
Der 19 than in any similar period
thus far this year.
| Production estimates for most
District crops were about the
same on September l as on Au
gust /. Physical conditions were
somewhat more favorable during
August than in July, month of
unusually bot weather, and har
vesting Of agricultural products
progressed at normal rate. As
has been the case throughout
this season. grazing conditions
in Arizona continued .satisfac
tory, but considerable supple
mental feeding of livestock was
required in most other parts of
the District during the month.
Shortages of irrigation water
became more noticeable in An
gust, rejecting the subnormal
rain and snowfall of the present
season.
Crude oil produced in Califor
MIA declined slightly during Au
gust, reaching the lowest daily
average for any month since De
cember, 1922. Activity at re
fneries changed little during
July, although small increase
in gasoline supplies has been re
corded. Only part of the usual
July to August increase in the
output of lumber took place and
, production was less than either
} orders or shipments. Flour mill
ing declined shaply in August,
while copper. lead and silver
were produced in quantities ap
approximating those of Joly.
The value of nearly all types of
construction contracts awarded
declined in August. the principal
exception being the value of
J projects of the Federal Govern
J ment which was more than double
that of July. Employment con
} tinued at low levels and further
wage declines were reported.
After allowing for seasonal
: factors, decline was recorded
in the Districts trade activity
during August. Sales of depart
ment stores fell slightly short of
the seasonal increase and whole.
sale trade declined contrary to
the usual July-August move
ment. Freight carloadings re
NAMED unchanged. although
there is usually sharp increase.
An increase in the volume of
waterborne traffic moving from
Pacific to Atlantic Coast ports
considerably more than Offset a
decline in Panama Canal ship
ments in the opposite direction.
Reserve bank credit in use in
the Twelfth District increased
further during the four weeks
ending September 16. Discounts
at the Federal Reserve Bank of
San Francisco increased and
holdings of locally purchased &C
ceptances we're larger than in
other recent months. Currency
circulation continued to expand
more than seasonally. A con
siderable withdrawal Of bankers
balances placed with San Fran
,. cisco member banks was record
ed between August 19 and Sep
tember 16. The allotment to
Twelfth District banks of $40,
IA 900 of the per cent bonds
issued by the Treasury 90 Sep
tember IS enlarged the invest
ment holdings of reporting mem
Der banks by only eight million
dollars, while government de
posits in those banks increased
26 million dollars, indicating that
a large part Of the allotment was
resold Immediately. Both time
and net demand deposits declin
ed further during the four week
period. Interest rates reported
during September by leading
banksin principal Twelfth Dis
trict cities continued, the slight
firming begun last May.