The border vidette., 1933-01-28
BUSINESS CONDITIONS IN 18TH
FEDERAL RESERVE DIST,

San Francisco, Jan. 28.-The
Twelfth Federal Reserve District
BUSINESS declined steadily during
the first half of 1882, but be-
came fairly sta BILE in the second
half of the year. The volume of
crop prod duction was larger in
1882 than in 1881, but the quan.
tity of agricultural commodities
marketed was slightly smaller
and agricultural income declined
sharply because of reduced
prices for farm products. Ac.
tivity in several leading indus.
tries of the District-lumb Der,
petroleum, electric power, meat
packing, non ferrous metals, and
cement-fuctuated near the low
levels of late 1881, showing little
net decline during the year. The
paper and pulp and textile in
dustries increased production
schedules during the year. Flour
mills and canning Of fruits and
vegetables decreased during 1882
as compared with 1921. The
value of engineering contracts
awarded and building permits
issued was considerably smaller
in 1882 than in 1881, although
state and federal government
projects continued to be initiated
on q relatively large scale. Both
retail and wholesale trade i'm
proved seasonally in the last
half of 1882, but substantial de
clines in value we're reported for
the year. Adjusted freight car
loadings and intercoastal traffic
advanced from low mid year
levels. Registrations of new
automobiles and the value of
foreign trade receded in most
months of 1882. Prices for com
modities important in the 18th
District continued to decrease
during 1882. There was little
net change during the second
half of the year. however, and
the average price decline from
the year before was less than in
1880 or 1881.
The strained credit situation
of late 1881 grew considerably
worse during the first 2 months
OF 1882 as a result of continued
large deposit Withdrawals and
heavy payments of funds to
other districts, accompanied by
numerous bank failures. Bor
rowings from tbs Reserve Bank
rose to the highest levels in II
years. With the passage Of the
Glass Steagall Act and the open
ing Of operations by the Recon
struction Finance Corporation iu
February. however, sentiment
improved and the decline in de
posiss and the rate of bank fail
ures moderated. This partial
improvement was Offset by con.
siderably larger than usual mid
year Withdrawal of currency.
Beginning ia late July.the credit
situation became easier. ten
dency which continued through
out the remainder of the year.
This improvement was traceable
in part to a con tinued large in
flow of funds through treasury
expenditures in excess of collec.
tions, and to marked reduction
in the net outflow of funds to
other parts of the United States
because of commercial transac.
tions. In early months of the
year this inflow had been Offset
by losses through individual and
banking transactions.) Another
factor of importance IN easing
credit conditions during the last
half of the year was the issuance
of substantial amounts of new
national bank notes secured by
Government bonds. The impro
vement in the banking situation
was reflected in an increase 10
deposits. acd in increased in
United States securities.
During December California
crude oil output aud adjusted
lumb Der production changed lit
tie. The value of engineering
contracts awarded aud building
permits issued was smaller than
in November, in which month
the Golden Gate bridge contracts
we're incloded. Flour milling
and cement production increased
after seasonal allowance. Elk
pansion in department store
sales from November was some
what greater than seasonal but
freight carloading and intercoast
al traffic decreased slightly.