ago, with prices of $1.55 to $1.75 per barrel, as against 45 cents a barrel last year. Old fields are being extended, and 80 per cent more laborers are employed in this industry than in

1915.

A heavy snow in the western part of the district the early part of this month put the ground in excellent condition. This will bring up early grass, and the condition of the cattle industry is quite satisfactory. Cattle wintered well.

Wholesale grocers report a substantial improvement in business over 1915, with collections good. A 40 per cent increase in orders is reported by the large mail-order houses, with uniform demand for all classes of goods.

An increase in freight traffic is reported by the railroads, amounting to approximately 10 per cent. A serious car shortage is reported, on account of congestion in equipment in the North. This has resulted in the railroads doubling their charge for demurrage. Passenger traffic shows a slight increase over 1915.

Business with retailers is reported as good for this season, and spring trade is active. Col

lections are fair.

A comparative statement of the exports from the port of Galveston for the month of March, 1915 and 1916, proves interesting. The value of the exports for March, 1916, was $13,363,000, which is a decrease over 1915. This is explained largely by the decrease in shipments of cotton and cottonseed products, the value of which commodities alone amounted to some $17,000,000 in March, 1915. These commodities are consigned principally to France, Germany, Italy, Spain, Sweden, and England. Quite a substantial increase in exports of rice, hay, and spelter is shown over 1915, shipments of the latter commodity alone amounting to 6,670,000 pounds and valued at $1,268,000.

DISTRICT NO. 12-SAN FRANCISCO.

The West Coast Lumbermen's Association, composed of a majority of mills operating in Washington and Oregon, reports March orders 34 per cent and shipments 30 per cent over production, mostly for domestic use, exports being restricted by lack of ships. There is general activity, and prices are up $3 to $5 per thousand.

The

Acute shortage has caused unparalleled activity in shipbuilding. Seattle reports contracts aggregating $11,000,000, nearly four times the total at this time last year. principal builder at San Francisco is said to have contracts in excess of $20,000,000, with no diminution of demand even with important advances in price because of increased prices for material and labor.

Despite dearth of bottoms, Seattle reports for January and February of this year, as compared with same months last year, imports $35,693,042, increase $21,172,927; exports $15,885,204, increase $4,732,108. San Francisco reports for same period imports $21,198,558, increase $8, 857,186; exports $15,735,910, decrease $57,906.

Although the Panama Canal opened April 15, few ships are scheduled for immediate service between the Atlantic and Pacific coasts, both because now otherwise engaged and because extraordinary charter rates for exports influence strongly to that service as against coastwise service. The Pacific Mail Steamship Co. has announced three steamers of moderate size for San Francisco and China service.

gasoline and distillate on this coast. Activity in drilling, greater than at any time for half a dozen years, is reported chiefly in the proven oil land of the State, which aggregates 80,702 acres. In March 34 new wells were brought in with an initial daily production of 6,790 barrels.

precipitation, contribute especial advantage because of high prices for all live stock.

Prunes and apricots in certain sections have been reported damaged by frost. It is too early, however, to predict with certainty regarding these crops. Efforts are making for better organization in marketing fresh and dried fruits, which should result in increased returns to growers. Dried-fruit shipments from Cali

Agricultural prospects are generally favorable, with especial benefit assured for many crops from unusual precipitation during the rainy months. Grain acreage will be less than last year both because of necessity for summer fallowing and because of unfavorable weather during seeding time. Considerable stocks of both wheat and barley are still on hand, more than at the corresponding time in either of the two preceding years. The 1915 rice crop in California is reported as 80,000,000 pounds, with 250,000,000 pounds estimated for 1916. From Calexico, Cal., in the Imperial Valley, comes the report that cotton acreage on the American side will be increased from 12,000 acres last year to 40,000 this year; on the Mexican side from 30,000 acres last year to 65,000 acres this year. Yuma, Ariz., reports 4,000 acres in cotton this year, and a normal production of 2 bales per acre. Cotton seed is said to be used extensively for fattening cattle. Alfalfa cutting began early in April. This crop and good pasture, because of much

crease of $8,056,000 over 1914. Navel oranges bring much better prices than last year, and prospects for Valencias, which ripen about midsummer, are reported excellent. Lemons are yielding fair prices. Raisin crop, 35 per cent over 1914, aggregated 124,000 tons, valued at $10,000,000. Acreage of Thompson seedless raisins is increasing. Nine thousand five hundred and sixty-four cars of table grapes were shipped out of California in 1915, and 1,000 carloads consumed in the State, yielding growers $9,514,000.

Sweet-wine production for 1915 in California was 4,000,000 gallons, against 16,600,000 in 1914, dry-wine production declining from 25,000,000 gallons to 21,000,000.

Heavy shipments of vegetables are now going forward. Canners are busy with asparagus, of which about 1,000 carloads will be packed.

Merchants generally report good distribution and good collections.. Bank clearings for March in 18 cities of this district increased 19 per cent over March, 1915; building permits 11 per cent. Credit conditions are easy. The situation as a whole in this district is favorable. There seems prospect of large production and important increase in wealth during the current year.

AND MATURITIES.

The total discounts of commercial paper made by the Federal Reserve Banks during the month of March, 1916, were $9,387,300, or 22.5 per cent in excess of the total for the preceding month, though over 30 per cent below the discounts in March, 1915. About 68 per cent of the month's discounts, as compared with 79 per cent in February, is credited to the three southern banks, Kansas City and Chicago together reporting an additional 15 per cent of the total discounts for the month. The aggregate discounts the first quarter of the year were $28,166,800, compared with $36,642,800 for the corresponding quarter in 1915. It is notable that whereas the discounts for the quarter of 30-and 60-day paper show large decreases as compared with corresponding 1915 figures, the amounts of 90-day, and especially 6-month paper discounted during the present year are larger than for the first quarter of the past year.

Commodity paper, mostly secured by cotton, was discounted by 5 banks and totaled $1,718,987, constituting 18.3 per cent of the total discounts for the month, compared with 23.4 per cent for February and 16.8 per cent for January of the present year. Over 96 per cent of this class of paper was handled by the Richmond and Atlanta banks, of whose total discounts for the month commodity paper constituted about 25 and 50 per cent, respectively.

Trade acceptances discounted during the month by 7 banks aggregated $298,733, of which nearly one-half is reported by the Richmond bank. This total is exclusive of $514,677 of trade acceptances, based upon foreign-commerce transactions, and purchased during the month by the 3 banks on the Eastern Seaboard and the San Francisco bank; also of $9,695 of domestic-trade acceptances bought in the open market during the month by the Atlanta Federal Reserve Bank.

The total number of bills discounted during the month was 6,209, compared with 5,086 in

year. The average size of the paper discounted during the month was about $1,512, compared with $1,507 for the preceding month, $1,753 for January, 1916, and about $1,800 for the last quarter in 1915. This average varies between about $2,570 for the Boston district (where, however, the total number of bills discounted during the month was only 83), $1,952 for the Atlanta-New Orleans district, and $815 for the Philadelphia district.

Over one-third of the number and 53 per cent of the entire amount of the paper discounted during the month was medium-sized paper in denominations of $1,000 to $5,000. Small bills (in amounts up to $250) represent over 20 per cent of the total number, though less than 2 per cent of the aggregate amount of paper discounted during the month. Of the total number of such bills, 1,259, about 30 per cent was handled by Richmond, about 22 per cent by Atlanta, over 15 per cent by Kansas City, and less than 14 per cent by Dallas.

About one-half of 1 per cent of the paper discounted during March was 10-day paper; 12.3 per cent 30-day; 33.9 per cent 60-day; and 40.5 per cent 90-day paper. About 1.2 millions, or 12.8 per cent of the total discounts for the month, was agricultural and live-stock paper, maturing after 90 days at the time of rediscount. Over 75 per cent of this class of paper was handled by the Dallas, Kansas City, and Chicago banks.

Of the 7,639 member banks reported at the close of the month 535, or about 7 per cent, were accommodated during the month through the discount of paper, as against 451 in February, 1916, and 570 in March of the past year. Richmond reports the largest number of banks accommodated during the month, 116, or about 23 per cent of the entire number of member banks in the reserve district. Member banks in Texas to the number of 83 secured about 1.3 millions of rediscounts, 43 banks in South Carolina over 1.2 millions, 29 banks in