Petroleum industry is at a high tide of prosperity. In California February consumption exceeded production by about 1,000,000 barrels in spite of considerable new production. Many new wells are drilling under stimulus of advancing prices.

Exports and imports are at record totals in spite of acute shortage of ships. Considerable war material goes to Russia via Seattle. The reopening of the Panama Canal, reported for April 15, will be especially important for this coast.

Since the establishment of the Federal Reserve System, national bank capitalization, then $129,585,000 in this district, has increased

by new organizations $740,500, and by conversions of State banks $684,500, and decreased by conversions into or consolidations with State banks $435,000, making a net increase of $990,000.

February bank clearings in 17 principal cities of this district show a gain of 20 per cent over the preceding year, and building permits a gain of 25 per cent.

National banks of San Francisco on March 7, 1916, show an increase of $36,000,000, approximately 23 per cent, in deposits, and only $500,000 in loans, compared with the corresponding time last year. Credit conditions are easy throughout the district.

AND MATURITIES.

The total discounts of commercial paper granted by the Federal Reserve Banks during February, 1916, were $7,664,600, the smallest monthly total since the opening of the banks. As compared with the February, 1915, total of $12,530,300, the February, 1916, figures show a decrease in discount operations of almost 40 per cent. Over 79 per cent of the monthly discounts are credited to the three southern banks, Kansas City being the only other bank which reports discount operations of y volume for the month. The aggregate of discounts since the beginning of the year, $18,779,500, is about 19 per cent below the corresponding total for

1915.

Commodity paper, practically all secured by cotton, was handled by five reserve banks and aggregated $1,794,700, constituting 23.4 of all paper discounted during the month, compared with 16.8 per cent for January, 1916, and 16.3 per cent for the last four months in 1915 during which this class of paper was handled. Of the total February discounts reported by the Richmond bank commodity paper was about 37 per cent, while of the month's discounts reported by the Atlanta bank and its New Orleans branch this class of paper constituted almost 39 per cent.

Trade acceptances discounted during the month by five banks totaled $246,100, as against $444,400 for January. Over 94 per cent of this class of paper was handled by the Richmond and Atlanta banks, including the latter's New Orleans branch. The total just given is exclusive of $522,000 of trade acceptances based upon foreign commerce transactions and purchased during the month by the three eastern seaboard and the San Francisco banks.

The total number of bills discounted during the month was 5,086, or almost 20 per cent less than the January total. The average size of the paper discounted during the month was about $1,507, compared with $1,753 in January

For the more active southern banks these averages were: Richmond, $1,517; Atlanta, including the New Orleans branch, $1,845; and Dallas, $1,524.

Over 32 per cent of the entire number, and over 52 per cent of the total amount of, bills discounted during the month were mediumsized bills, i. e., in denominations ranging between $1,000 and $5,000. Bills of the largest size (i. e., in denominations of over $10,000) constituted about 11 per cent of the total discounts for the month. Small bills (in amounts up to $250) were over 20 per cent of the entire number, though only slightly over 2 per cent of the total amount of the paper discounted during the month. The three southern banks handled 860 such bills out of a total of 1,099, Richmond alone reporting 376 and Atlanta 249 of the total number.

Less than 1 per cent of the paper discounted during February was 10-day paper; 13.6 per cent, 30-day; 33.4 per cent, 60-day; and 39.1 per cent, 90-day paper. Over 1 million, or 13.1 per cent of the total discounts, was agricultural and live-stock paper maturing after 90 days at the time of rediscount. Of this class of paper, the Dallas bank handled more than one-half and Kansas City nearly 20 per cent.

paper

The number of member banks accommodated during the month through the discount of was 451, the smallest monthly total since January, 1915, and was only about 5.6 per cent of the entire number of member banks shown at the end of the month. Almost two-thirds of the rediscounting banks are located within the three southern reserve districts. Member banks in Texas obtained about 1.4 million dollars of rediscounts, banks in South Carolina 1.2 millions, and banks in North Carolina less than 0.9 million. Member banks in Georgia, Virginia, and Alabama obtained accommodation of about 1.8 millions. The combined share of rediscounts secured by banks in the six States named is about 70 per cent of the total discounts reported to the Board for the month.