Imperial Valley press., 1934-11-06
BANK REPORT SHOWS SPLENDID
GAIN IN BUSINESS FOR OCTOBER

Improvement during october ad-
vanced the general level of business
activity in Southern California to
a new high point for 1884 with
marked gains in retail trade and
agricultural income as the out
standing developments of the Pc
| riod, according to the monthly sum-
mary of business conditions COM
piled and published by the Secu-
rity-First National Bank of Los
Angeles.
Favorable records were also
made by the petroleum industry
and building construction and rem
ovation concerns. Most manufac-
turing businesses, however, oper-
ated at about the same rate as in
preceding months. In the field of
finance, sharp recovery occurred
in the price of California munich
pal bonds while bank deposits con-
tinued to expand" the report
states, continuing in part as fol-
lows:
The banks index of local busi-
ness activity stands, on the basis
of preliminary figures, at 69.7 for
October, equalling the high point
reached in the inflation-inSpired
rise of 1893. In September, the in
dex stood at CTS and in October,
1888, it was $50.
"Of interest to both property
owners and people occupying rent
ed dwellings is the growing evidence
that rental rates are beginning to
rise in this area. Reports gathered
from 26 Southern California COM
munities during the past month re-.
vealed distinct reversal of the
downward trend of recent years in
all but few instances. Since much
of the large volume of unemploy-
ment in Los Angeles county is oc-
casioned by the inactivity of the
building trades, the appearance OF
demand for new housing Is sig
nificant.
Preliminary figures on depart
ment store sales show an expansion
of retail trade in Los Angeles of
about 8 per cent as contrasted with
September, after seasonal factors
are given consideration. Trade in
suburban and agricultural commu-
mites was considerably larger in
October than in either September,
1884, or October, 1888, according to
preliminary reports from 26 rep
resentatiye communities in the
communities in the southern part
OF the state. Marked gains are
shown by Santa Ana, Fresno and
other agricultural cities as a re-
suit of the increased returns re-
ceived for farm products this
season.
Bank Situation Better
"a further expansion of demand
deposits, increases in commercial
loans, and a sharp gain in reserve
balances characterized the local
banking situation during the four
weeks ended October "a. Aggregate
deposits advanced to new high
level for the recovery period, the
growth of demand accounts Offset
ting recessions in time funds. Cali
fornia municipal bond prices rose
appreciably during October, retrac-
ing about three -fourths of the re-
cession which occurred during Aug
ust and September. Several issues
are not far below the peak levels
reached in July of this year. +.
The general level of industrial
activity in October remained about
the same as in August and Sep
tember. Awards pending on public
works projects, however, indicate
that more active level will be at
tanned in November. Third quarter,
earnings reports of California oil
companies revealed a substantial
recovery resulting from more order
ly marketing in this area during
the last few months.
There was substantial increase
in the number and value of build