The border vidette., 1933-04-01
BUSINESS CONDITIONS IN i2TH
FED. RESERVE DIST.

San Francisco. March o.
Banking Developments ia the
Twelfth Federal Reserve District
as i'm the United States gene, 81.
~, we're of dominant imports0ce
during late February aud the
first half of March. No out.
standing changes in the general
business or financial situation
had been apparent during the
first six weeks OF the year, al.
though the failure of two rather
large and several smaller banks
in January had been followed by
Withdrawals of disposits from
other banks.
About the time that the force
Of this adverse influence appear
ed to be coming to an end. how.
ever, widespread publicity given
to the Michigan banking morato.
rum and to other nnfavorab BILE
banking situations began to have
an effect in the Twelfth District,
and Immediately following an.
nouncement of banking holidays
or restrictions in other eastern
states Oh February 25 q sub.
stantial run on California banks
developed. This relatively heavy
run lasted for three days--Feb.
ruary q, February %, and
March when it was brought
to an end by proclamation of the
Governor OF California closing
all banks in that State for g.
day period. This action ia Cali.
forpia was followed BY runs on
banks in other fer western states
and by March 8 emergency bank.
ing restrictions had been placed
in effect in all Twelfth District
states. Withdrawal of currency
during the week ending March
/, while at a record rate, was so
short lived that it's effect upoa
District bank deposits was rela.
lively small. Currency ray.
nents by banks to depos;tors
were about 80 million dollars
dnring the week encipg March
7. compared with deposits In
those banks Of considerably
more than 8 billion dollars at the
beginning Of THE year.
Banks met the unusual demand
for currency by borrowing from
the Federal Reserve Bank of
San Francisco and by drawing
upon their reserve balances,
which had been built up during
the first half OF February thru
transfers Of funds from other
parts of the United States.
Reopeniog of banks under Ii.
censes issued by the Secretary
of the Treasury and by ssasa
authorities commenced on March
13 and proceeded rapidly after
that date. BY March 20 nos:
Twelfth District banks had ra.
sumed customary operations al.
though good many were either
in the hands of conservatcrs or
had been closed for liquidation.
Currency which had been
Withdrawn prior to the closing
of banks on March 2 was rede-
posted in large amounts be.
tween March 13 aud 20 and con.
siderably more gold coin was
turned in to the Fedora! Reserve
Bank of San Francisco than had
been withdrawn from January
to March 4, 1888. Redepos!ted
currency was sent to the Re-
serve Bank to repay borrowings
and 10 Increase reserve balances.
Volume Of production Was
slis htly smaller 10 February
than ia January. Department
store sales aud iptercoastai trsf.
ii: through the Panama Canel
increased, but The number Of
cars of freight loaded on Dis
trict railroads during the month
decreased. Other trade meas
ures changed little. Petroleum
production daring February ap.
proximated that of the preced.
ing month. The cot OF lumber
declined contrary to the seasonal
movement and the volume oi
engineering construction decreGs
ed sharply. Employment condi.
tions remained about the sau.a
in February as ia January.
Com mmodity prices declined very
slightly during February, but
advanced considerably during
and immediately following the
bankiog holiday in March. Non
statistical reports Indicate tina:
the banking restrictions dur;ng
the first half OF March reduced