authorities consulted estimate that 15 to 20 per cent of the staple is held throughout the district. As previously reported, while there has been a general campaign to reduce the cotton acreage this year, a conservative estimate, from present indications, would be that the acreage will be increased 15 per cent.

The past 30 days has brought a large movement of vegetables from south Texas. Demand is very good, at fair prices. The proThe production is about the average.

The banks of the district for the most part are in a very healthy condition, as disclosed by the comptroller's call of March 7. This regardless of the fact that, in Texas partic_ ularly, approximately $7,000,000 in tax funds were transferred to the State treasurer at Austin. This transfer had to be made prior to March 1, and this bank materially assisted by making shipments of currency of approximately $2,000,000 to Austin banks for credit of their correspondents throughout the State. Rates are still easy, and banks are experiencing only moderate demands for loans. The loans of this bank are about the same as a month ago, and no material change is noted in the character of offerings. Live-stock paper, in large amounts, continues to be freely offered. The banks have not yet commenced their seasonal demands for the movement of spring crops, and with weather conditions materially affecting the production it will be sometime yet before there will be any material change in this respect.

Manufacturers throughout the district report an excellent business and anticipate a continuation of good spring orders. Jobbers likewise are enjoying a good trade, which is reflected materially in the volume of orders reported by their traveling salesmen.

Lumber mills are running continuously, and are finding it difficult to supply the demand. Not since 1906 has this industry been in such a satisfactory condition, and there is no indication of any change in the near future.

Oil refineries are running on full time, and the product finds a ready market at excellent prices.

With new fields being opened this development is bringing outside capital to this section. Railroads report a 20 per cent increase in freight traffic over the same period a year ago. Congestion of freight in the North and East has caused a general shortage of cars in this section, and shippers are experiencing difficulty in getting sufficient equipment for their needs.

Building operations and improvements show a substantial increase; every section of the district reports much work underway. There is a good demand for all classes of labor at fair wages.

DISTRICT NO. 12-SAN FRANCISCO.

Agricultural prospects are quite generally favorable throughout the seven States of this district because of unusual precipitation during December, January and February. Dry farming, important in some sections, will especially benefit. Grain acreage will be reduced perhaps 25 per cent, as a dry fall season followed by continuous wet weather interfered with plowing. In the Northwest two successive grain crops have compelled summer fallowing of considerable areas. It is reported that near Spokane wheat farmers have unprecedented accumulations of funds from two profitable years.

Sugar producers, both in this district and in Hawaii, have prospered greatly. A large increase is reported in acreage of sugar beets.

Growers of citrus fruits have had a reasonably satisfactory year. There is a large annual increase of producing acreage from new trees coming into bearing.

Live-stock interests are especially prosperous. Wool is being contracted for at from 27 cents upward, and sheep are commanding exceptional prices. One report states that there is good profit in wool at 15 cents, with lamb and mutton at 60 per cent of present prices. Southern Idaho is said to have rereived $1,000,000 for horses sold for war use.

Mining is exceedingly active, with unexampled output and prices for both copper and other minerals.

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 any 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.

The number of member banks accommodated during the month through the discount of paper 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.