April 1926 236 FEDERAL RESERVE BULLETIN APRID, 1926 fell off rapidly, average production per working following table, and it was probably in con- day being 1,782,000 net tons for the week end- sideration of this factor that prices advanced. ing March 13, as compared with 2,002,000 net tons four weeks earlier and 1,440,000 net tons DAILY AVERAGE PRODUCTION OF CRUDE PETROLEUM1 for the second week in March, 1925. [In barrels of 42 gallons] As production of anthracite coal did not begin in large volume until the third week in California United States February, total February output was only 2,083,000 net tons, as compared with 7,176,000 1926 1925 1926 1925 net tons in February, 1925. During the first January __ 615,147 604,622 1,924,387 1,919,968 two weeks of March output was high, daily Week ending— production averaging 1,966,000 net tons during Feb. 6 608,000 595,500 1,906,250 1,941,600 Feb. 13 606,500 598,100 1,902,500 1,935,100 the week ending March 13, as compared with Feb. 20.. 603,500 601,800 1,902, 750 1,947,600 Feb. 27 603,000 602, 000 1,927, 050 1, 943, 750 1,656,000 net tons during the corresponding Mar. 6 599, 000 603,000 1,920, 300 1,944,450 week last year. Mar. 13 607, 500 603,000 1,935, 200 1,949,200 Although total production of coke during 1 Monthly figures, Bureau of Mines, Department of Commerce; February of 4,902,000 short tons was 283,000 Weekly figures, American Petroleum Institute. tons under the January peak, it represented a higher daily rate of output. Actual produc- Statistics prepared by the Bureau of Mines tion of beehive was 1,402,000 tons, the highest of the Department of Commerce and published since August, 1923, while output of by-product early in March showed that the production at 3,500,000 tons was the lowest since October, of gasoline in January was 14 per cent larger 1925, but above all previous months. During than a year earlier, and that stocks at the end the first part of March output of beehive fell of the month were 20 per cent greater than on off rapidly, but was still above the first half the corresponding date in 1925, exceeding of March, 1925, production for the week end- stocks at any previous period. The large ing March 13 being 262,000 tons, as compared increase in gasoline production in 1925 and with 362,000 tons four weeks earlier and in the first part of this year, which resulted 243,000 tons for the second week in March, in the large addition to stocks, notwithstand- 1925. Quotations for coke fell rapidly follow- ing the fact that gasoline consumption was in ing the settlement of the anthracite strike. record volume, was due in part to the "crack- Connellsville coke being quoted at $3.25 on ing process" used in refining, which enables March 16, as compared with $10.50 on Feb- a larger amount of gasoline to be produced ruary 10. from crude petroleum than formerly. Petroleum. Despite the large increase in production and stocks, prices of gasoline have advanced some- Declines in the production of crude petro- what since the beginning of the year, as will leum during January and a continuation of the be seen in the accompanying table, but near output in a relatively small volume up to the the middle of March the market was not as middle of February were followed by rising firm as earlier in the year and quotations at prices, and for the week ending March 20 refineries showed slight declines. the average price of crude petroleum for ten fields was $2,048 a barrel, as compared with PRICES OF GASOLINE1 $1,842 early in January. Partly as a conse- quence of this improvement in prices, produc- [Cents per gallon] tion was stimulated late in February and in the Refin- Service early weeks of March, and for the week ending eries stations March 13 the daily average output amounted to 1,935,200 barrels, the largest since the middle Average Week ending- Average for 10 sec- of January. Price advances in March oc- at repre- tions of sentative the curred in nearly all of the leading producing refining United fields, but those in California, which were centers States advanced from 1 to 44 cents per barrel, ac- cording to gravity, seemed to be the most sig- Jan. 1 __- --_ 11.125 20.92 Feb.27 - . 11. 375 21.77 nificant, since they were the first in more than Mar. 6 11. 375 21.97 a year. Declines in production in California Mar. 13 11. 325 22.17 since January have been relatively greater than Mar. 20 .. 11.287 22.17 for the country as a whole, as is shown in the i Oil, Paint, and Drug Reporter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis June 1926 390 FEDEKAL RESERVE BULLETIN JUNE, 1926" relative supply of gasoline has resulted in November and on a par with the lows for a rapid increase in prices,, which are generally 1925 reached in April of that year. higher now than a year ago. Detailed statis- On continued selling from China, quotations tics showing prices in April and May, 1925 and for bar silver in New York fell to 63 cents on 1926, at refineries and service stations are April 22, 9% cents under the recent September given in the following table: high, but reacted subsequently under the stim- ulus of support from both China and India, and PRICES OF GASOLINE on May 19 stood at 65 cents, up % cents from April 14. In spite of large deliveries of tin to [Cents per gallon] the United States, which in April were the second largest since February, 1925, stocks in Gasoline at— New York at the end of the month were the 2 lowest since November, 1923. Quotations for Refineries 1 Service stations Straits tin of 6134 cents on May 19 were 4^ 1925 cents under the March high, but still above 1926 1925 1926 the levels during the five years preceding- Apr. 3_ 11. 51 12.59 22.27 22.72 October of last year. Apr. 10. 11.63 12.22 22.32 22. 52 Apr. 17. 11. 63 12.41 22.32 22.52 Apr. 24. 11. 69 12.25 22. 32 22.52 MANUFACTURING May 1_ 11.97 12.31 22. 72 22.52 May8_ 12.50 12.50 23.12 22. 32 Manufacturing production declined about 1 May 15. 12.44 12.94 23.12 22.72 May 22. 13.44 12.94 23. 62 22.62 per cent in April, according to the board's new production index, based upon statistics of 1 Oil, Paint and Drug Reporter—average price at 4 representative refin- daily average output. The volume of manu- ing centers. 2 Oil, Paint and Drug Reporter—average price for 10 sections of the facturing in April, although less than in March, United States. continued at around the same high level that has been maintained, except for a seasonal Nonferrous metals. recession in December and January, since lask April output of nonferrous metals in the October. The April index was also higher United States continued close to the high levels than that for April, 1925. Eeports from many that characterized March, in spite of the some- industries, however, indicate decreasing activ- what lower prices that were established during ity in buying and rather general curtailment of that month. Production of copper in the operations. In April decreases were noted in- United States amounted to 146,012,000 pounds steel, textiles, food, and tobacco products, and_ during April, the highest for that month since shoes, more than offsetting increases, largely the war, and at about the same daily rate as seasonal, in automobiles, lumber, stone, clay, in March. Consumption continued high, knd and glass products, and nonferrous metals. at the end of the month stocks of refined copper Prices of manufactured products, particularly in the hands of producers showed a decline of of iron and steel and textiles, have been, 2,600 tons. During the first half of May quo- declining in recent months. tations for refined electrolytic copper delivered at New York continued to fluctuate around the Food products. level of 13% cents, which prevailed during the The output of meat products during April: greater part of April. Though output of lead declined as a result of the seasonal decline in during April was at the lowest daily rate since livestock marketing. The total value of sales, September, it established a new high for that however, reported by 42 meat-packing com- month, as did zinc, output of which was like- panies to the Chicago Federal Reserve Bank, wise somewhat curtailed from the levels pre- exceeded those of March by nearly 1 per cent, vailing in recent months. Shipments of slab and were 8 per cent larger than in April, 1925. A zinc from refineries, though slightly above firmer market for pork products was in evidence last year, were well under output, with the and prices advanced; quotations on beef result that stocks on hand at the end of the products remained relatively stable and lamb month increased to 25,990 tons, the highest prices advanced. Lard stocks increased ap- since the end of November, 1924. Quotations proximately 5,000,000 pounds during tne for both lead and zinc continued to fall during month, but the May 1 holdings were consider- the period, lead at 7% ceiits in New York and ably below those of last year, totaling 98,315,000 zinc at §%-&/& cents in St.