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FEDERAL
HOME
LOAN
BANK
Washington, August 1942
TENTH ANNIVERSARY
FEDERAL HOME LOAN BANK SYSTEM
July 22, 1912
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Foreword
I am happy to introduce this special issue of the R E V I E W ,
commemorating the tenth anniversary of the Federal Home
Loan Bank System.
I n more normal times this important anniversary would
warrant a very different celebration than the necessity of
these stern times permits. Even now, however, we may
well pause to resurvey the road we have traveled. Such a
study can be made of great value to our National system of
thrift and home-financing institutions. I t will define more
clearly our present war-time responsibilities, and it will help
us also to discover new opportunities of service to our country
in the great constructive peace which will follow the War.
; Even though restricted as to form and content, this issue
of the R E V I E W presents most stimulating reading for all those
concerned with thrift and home ownership in our country.
I n presenting it, I extend my greetings to the 12 Federal
Home Loan Banks and to the member institutions which
form the System now closing the record of its first 10 years
of existence.
Wwr^
JAMES TWOHY,
60®
Governor.
FEDEKAL HOME LOAN
B A N K SYSTEM
THE WHITE HOUSE
WASHINGTON
July 24, 1942
My dear Mr. Fahey:
On this tenth anniversary of the Federal Home Loan
Bank System, I wish to extend my congratulations on a record
of significant accomplishments.
One needs only to recall the conditions which prevailed in the early days of the Bank System to realize the
great progress which has been made. Struggling to establish
itself as an essential source of credit in the distressed home
mortgage field, the System at the start of 1933 had a membership
of less than 120 institutions and faced a seemingly impossible
task. Today the System has a membership of more than 3,800
Savings and Loan Associations, Savings Banks, and Insurance
Companies, with assets of nearly $5,500,000,000. The activities
of these institutions are conducive to the safe ownership and
maintenance of a great share of the Nation's homes. Moreover,
this home mortgage reserve system exercises a growing and constructive influence in the encouragement of thrift and better
methods of financing home ownership.
The steady development of the System during even
trying years provides an outstanding example of the useful
productive strength which can be turned to the benefit of
society through intelligent cooperation between government
and private industry.
Very sincerely yours,
Honorable John H. Fahey,
Commissioner,
Federal Home Loan Bank Administration
Yfashington, D. C.
NATIONAL HOUSING AGENCY
WASHINGTON, D. C.
July 28, 1942
OFFICE OF THE AD
NIST BATOR
Dear Mr. Fahey:
The Federal Home Loan Bank System's ten-year record of successful
operation has demonstrated the importance of a stabilized and
vigorous thrift and home financing industry in our national economy.
I am particularly aware of the value of such a System in the kind
of tasks we have assumed in recent months and which confront us in
the years ahead.
And I wish to acknowledge again the contributions
of the private institutions of the Bank System to the War housing
program and the load they lifted off the Government's shoulders in
financing the construction of homes in war industry areas.
The legislation under which the Bank System was created was the
first recognition that urban home-mortgage financing is not a purely
local affair but is a major business of nation-wide significance.
The Bank System has fully justified its existence by the order and
reform it has brought to its field.
Its decentralized organization enables member institutions to retain their local autonomy,
with regulatory powers exercised largely through the 12 Regional
Banks, in which the members themselves have a voice in determining
policy.
Such a system can help immeasurably to secure maximum
benefits for the American people in the great housing program which
certainly lies ahead.
I wish to extend my personal congratulations to the officials of
the Bank System, as well as to its member institutions, on this
tenth anniversary.
Sincerely yours,
\
NJohn B. Blandford, Jr. \ \
^s^^dniinistrator
[CTORY
BUY
UNITED
"IEPENSE
WPS
AND
, STAMPS
The Honorable John H. Ftothey, Commissioner
Federal Home Loan Bank Administration
Washington, D. C.
THE FEDERAL HOME LOAN BANK ADMINISTRATION
WASHINGTON
,EDERA, MOME LOAN BANK 8YSTEM
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
JOHN H. FAHEY
HOME OWNERS' LOAN CORPORATION
UNITED STATES HOUSING CORPORATION
A MESSAGE FROM THE COMMISSIONER
It is with great personal pleasure that I extend my greetings to the
members of the Federal Home Loan Bank System at the beginning of the
second decade of the System's operation.
It has been my privilege to be associated with this bulwark of thrift
and home finance during most of these 10 years and I share the deep
sense of satisfaction felt on this anniversary by all the constituent
elements of the System: the member institutions, the 12 Regional Banks,
and the Governor's Office as well as the other central services in
Washington.
Inaugurated during the worst depression experienced by this country,
the Federal Home Loan Bank System during its first decade of existence
has made a record of which we may all be proud. By protecting and encouraging savings and home ownership, which are mainstays of a sound
political and economic structure, the Bank System has made a conspicuous contribution to the welfare of the Nation. While preserving
local management and decentralized operation, it has molded previously
isolated local institutions into a nation-wide organization of great
strength. Its value has been reaffirmed in recent months when war
confronted us with new and difficult problems.
Ten years represent but a brief period in the life of a national credit
system, and it is obvious that we have still a long way to go toward
reaching our marinnim usefulness. While our present efforts center
around the promotion of war savings and the financing of war housing,
we are looking confidently toward the future when we shall be called
upon to furnish increasingly important services in a world at peace.
^
July 22, 1942
John H. FahejfCommissioner
Functions and Accomplishments of the Federal Home Loan Bank System
•
ON this tenth anniversary of the Federal Home
Loan Bank System it is well to recall the underlying factors responsible for the establishment of
the youngest of the reserve credit systems in this
country. The bitter experiences of the depression of
the early thirties brought our national credit reservoir for thrift and home-financing institutions into
being, just as every other reform in the Nation's
financial structure has been occasioned by crises
which brought to light long existing deficiencies.
B u t the atmosphere in which the Federal Home Loan
Bank Act was framed and passed does not alter
the fact that the basic purpose of the new system
was to bring permanent improvement to the organization of home finance, rather than to stem the tide
of an emergency. The nature of this development
cannot be fully understood without reviewing the
evolution of the American home-financing system
and its slow and painful process of integration.
THE
NEED
FOR A C R E D I T RESERVOIR
FINANCE
IN
HOME
Home-mortgage lending in this country has always
been a predominantly local enterprise based largely
on local resources. While powerful national centers
developed to serve the ever-growing financing needs
of industry, railroads, public utilities, and the
Federal and local governments, the thousands of
home-financing institutions operating all over the
country remained isolated units with no access to the
broad capital market. Behind the local mortgage
lender there stood no organized credit reservoir to
back him in case of need and to provide for an interlocal and interregional exchange of resources. Savers
356
who had entrusted their funds to home-financing
institutions, and home owners who had borrowed
money on the security of mortgages were equally
threatened by the absence of a "second line of defense' ' on which these institutions could fall back.
Mortgage funds for home building and home purchase were almost entirely dependent on the uneven
and often inadequate local supply of money. This
situation persisted even though mortgage lending, in
aggregate volume, had become one of the largest
sectors of the capital market.
When the Federal Home Loan Bank System was
created to remedy this defect in our home-financing
structure, a mechanism was designed which was in
keeping with what may be called the American
solution to problems of financial organization. In
the Federal Reserve Act of 1913 and the Federal
Farm Loan Act of 1916, a standard pattern of decentralized regional credit systems had been developed for banking and farm finance, supervised and
coordinated by a central authority in Washington.
I t was but natural that these Acts served in some
measure as models in the drafting of the Federal
Home Loan Bank bill.
How
THE SYSTEM OPERATES
At the same time, the purpose of the new system
required modifications to meet the particular needs
of the thrift and home-financing institutions which it
was designed to serve. Thus, short-term as well as
long-term credit was to be furnished by the regional
Banks to balance seasonal fluctuations in money
supply and demand, to supplement the local longterm resources of these institutions when they became
Federal Home Loan Bank Review
insufficient to meet the demand for funds, and to
act as a cushion in emergencies. Although the first
version of the bill spoke of "home loan discount
banks", the proposed regional Banks were to extend
credit based primarily on the security of mortgages
held by the local iastitutions, rather than to perform
discount services.
The capital stock of the Federal Home Loan Banks,
purchased by the Treasury as well as member institutions, was to be one primary source of funds for
this operation. In addition, the Banks were authorized to issue debentures as a medium through which
the capital market could be tapped for the benefit of
local members. Deposits by member institutions in
the Federal Home Loan Banks were to serve as an
outlet for their idle funds although, in contrast to the
Federal Reserve Bank set-up, members were not required to hoid cash reserves in the Banks. This,
plus interbank deposits within the System, was to
provide one of the means for equalizing the distribution of mortgage credit, by shifting funds to those
localities and areas where they were most needed.
FACTS AND F I G U R E S
Operating within this general framework, the
Federal Home Loan Bank System during the first
10 years of existence has made its contribution to
the stability of an important, though long neglected,
field of finance. A membership comprising 3,815
thrift and home-financing institutions with aggregate
assets of $5,680,000,000, gross advances approaching the one billion-dollar mark, and the successful
flotation of $292,700,000 of debentures testify to the
significant position of the Bank System in the
American home-mortgage structure, The fact that
this large volume of advances was made with no
single loss throughout the 10-year period attests
to the soundness of the Banks' operations.
The usefulness of a credit reservoir cannot be
measured in statistical terms alone. The Federal
Home Loan Bank System, created too late to bring
relief to the distressed home-mortgage market of
1932-1933, has not as yet been called upon to act
in an emergency when the maximum of its services
would be required. During most of these 10 years
it has operated in an atmosphere of normal growth
in home construction, home finance, and long-term
savings. However, its mere existence has helped
to remove the threat of mortgage illiquidity and, by
reassuring the management of lending institutions as
well as their borrowers and investors, has been a
factor in the return of confidence. Also, the Federal
August 1942
Home Loan Bank System has served as a focal point
for the evolution of better savings and mortgagelending plans and of higher standards of local
management. I n conjunction with the provision of
Federal charters for savings and loan associations
and insurance of savings accounts—measures which
were to follow the passage of the Federal Home
Loan Bank Act—the Bank System has helped to
reactivate thrift and hpme-financing operations.
SIGNIFICANCE IN THE W A R AND P O S T - W A R E R A
The problems created by the War once more
affirmed the importance of coordination of local
mortgage-lending institutions through the Federal
Home Loan Bank System. The existence of a decentralized but closely knit organization has been of
assistance in gearing the local operations of thousands
of member institutions to nation-wide programs in
the stimulation of war-bond sales as well as in the
financing of essential war housing—the two principal
contributions which thrift and home-financing institutions are called upon to make. At the same time,
the uncertainties inherent in the operation of
mortgage lenders during the War have placed additional value in membership in a nation-wide credit
reservoir.
Meeting the test of war as the System rounds out
its first decade of existence, the Federal Home Loan
Banks and their member institutions are facing even
greater tasks ahead when the day of victory comes.
Housing will undoubtedly be one of the great industries on which economic progress after the War will
be based, and sound thrift institutions will be
essential in the vast readjustments to a peace
economy. In this era of reconstruction, the services
of the Federal Home Loan Bank System will assume
a new significance—little foreseen when our legislators
passed the Federal Home Loan Bank Act in 1932.
FEDERAL HOME LOAN BANK BUILDING, WASHINGTON, D.
C.
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A Glimpse of the History of the Federal Home Loan Bank Act
•
W H E N the Seventy-second Congress, in the
sweltering heat of a Washington July and in the
very last hours of its first session, passed the Federal
Home Loan Bank bill, a turning point in the history
of American home finance had been reached. Here
was the first Federal legislation ever undertaken in
this field—a measure which was to be the spearhead
in a series of Government actions related to housing,
home ownership, and mortgage lending.
Enacted on July 22, 1932, in the harassing days of
an unprecedented depression, the Federal home loan
bank legislation was yet no product of hasty action.
Many months of Congressional hearings and floor
debate had preceded its passage. Introduction in
Congress had followed extended discussions, dating
back to the President's Conference on Home Building and Home Ownership in 1930-1931.
More than that, the plan for a credit reservoir to serve
home-financing institutions had a forerunner in Federal legislation proposed in 1919, and had lingered on
in the form of efforts to create central credit facilities
for savings and loan associations 1 in various States.
In fact, one such institution had been established in
the State of New York as early as 1914, only 1 year
after the organization of the Federal Reserve System
and 2 years before the passage of the Federal Farm
Loan Act.
A F O R E R U N N E R IN 1919
I n these days when vast post-war adjustments
loom on the horizon, the Federal legislation proi Throughout this article the term savings and loan association is used as a
generic term to cover thrift and home-financing institutions called variously
building, savings and loan associations, homestead associations, and cooperative
banks.
358
posed in 1919 serves as a reminder of the post-war
problems of a generation ago. At that time, prime
motive for the creation of organized credit facilities
for home-financing institutions was the acute housingshortage after the War. A mechanism designed to
make more capital available to home building was
believed to be the remedy, and in its attempt to
expand the flow of mortgage money, the Administration turned to savings and loan associations as the
most effective channel through which to work.
Conferences held under the auspices of the Department of Labor led to the drafting of a bill introduced
by Senator Calder and Representative Nolan in 1919.
In brief, these bills provided for regional Federal
building loan banks to include in their membership
institutions of the savings and loan type. The banks
were to issue tax-exempt bonds within prescribed
limits for the purpose of making credit available to
their members, primarily on the security of mortgage
collateral. The banks' capital was to be furnished
by the members. A Superintendent of Federal building loan banks was to be the chief officer of a special
bureau in the Treasury, which was to supervise the
operation of this credit system.
The fundamental points of similarity between this
project and the Federal Home Loan Bank System,
as it was brought to existence in 1932, are obvious.
In fact, an early draft of the plan spoke of " a system
of banks to be known as the Federal home loan
banks."
Committee hearings were held on the Calder-Nolan
bill in October 1919, but neither the Senate nor House
Committees reported the bill. I t appears that the
issuance of tax-exempt bonds, in view of the surfeit
Federal Home Loan Bank Review
of tax-free securities already on the market, was the
main point of objection not only on the part of Committee members but of the Treasury. Although the
bill, with certain modifications, was reintroduced in
1921 and later in the 68th, 69th, and 70th Congresses,
no legislative action was taken, and interest of the
savings and loan industry in the measure tapered off.
A L L Q U I E T D U R I N G THE T W E N T I E S
The prosperity of the twenties tended to obscure
the need for improvement of the home-mortgage
structure, and the problem of a national credit reservoir for home-financing institutions remained unsolved. In Florida (1924),
Ohio (1928), C a l i f o r n i a
(1929), and Virginia (1930),
attempts were made to set
up State credit institutions
for savings and loan associations under various plans,
but they either did not materialize or were abandoned
after a brief period of operation.
The savings and loan industry itself which, through
the 1928 Convention of the
Building and Loan League,
had declared itself against
a Federal system and in
favor of State reserve institutions, reversed its position 3 years later. In 1931
the report of the League
C o m m i t t e e on R e s e r v e
Credit and Banking Relations pointed out that u a
State is too small a section
to be organized into such a
plan." At the same time, the
Committee left undecided the question of a Federal
credit reservoir but was directed by the Convention
to continue its studies.
Meanwhile, cracks began to appear in the mortgage
structure as the 1929 crisis broadened into the worst
depression in history. Real-estate prices collapsed.
New building activity declined rapidly. Foreclosures rose at a disastrous rate. The flow of savings into financial institutions dried up, while failingconfidence and shrinking incomes caused increased
withdrawals of accumulated funds. Home-mortgage
lending came to a standstill. Mortgages became unAugust 1942
marketable and almost useless as collateral for credit
because there was no organized machinery to meet
this particular need. This situation set the scene for
the developments which were to culminate in the
adoption of the Federal Home Loan Bank Act.
DEPRESSION REVEALS THE N E E D
Spurred on by the depression experience, an Administration program merged with growing recognition by the home-financing industry of the need for
organized mortgage-credit facilities. As early as
May 1, 1930, President Hoover called public attention to the need for reorganization in the homefinancing
field.2
Three
months later he announced
that he had decided to call
a C o n f e r e n c e on H o m e
Building and Home Ownership and referred specifically to the inadequate organization of the homemortgage market. Reform
in this field became part
and parcel of the Government's program to check
deflation by fortifying the
Nation's credit structure.
The President's Conference on Home Building and
Home Ownership was to be
the focal point for deliberations on suggested mortgage-credit reforms. However, while the preparatory
studies of the Finance Committee of the Conference
were in progress, President
Hoover became more and
more concerned about the
growing crisis in the homefinancing field. On October 7, 1931, he held a conference attended by the members of the Finance Committee and a few others. The President stated that
he wished to have a concrete, workable plan providing a central organization for home financing as he
2
"Our credit machinery has proved itself able to stand shock in the commercial
field through the Federal Reserve System, in the industrial field through the
bond market and the investment houses, in the farm-mortgage field to some
extent through the Farm Loan System; and in the installment-buying field
through the organization of powerful finance corporations. But if we examine
the strains during the past six months we shall find one area of credit which is
most inadequately organized and which almost ceased to function under the
present stress. This is the provision of a steady flow of capital to the home
builder." (Address before the U. S. Chamber of Commerce on May 1, 1930.)
359
OPENING SESSION OF 72ND C ONGRESS
desired to present such a plan for the approval of
the Conference which was to hold its general session
in December.
By that time, two private groups, the U. S. Building and Loan League and the National Association
of Real Estate Boards, had developed plans for an
improvement of credit conditions in the mortgage
field. The League proposed an amendment to the
Federal Reserve Act to permit rediscounting of
savings and loan notes—a project under discussion
as early as 1918. Representatives of the Real Estate
Boards came forward with a sweeping plan to
establish a mortgage-discount bank system open to
all types of lenders. This plan had been submitted
to the President and discussed in the Finance Committee of the President's Conference but met with
almost unanimous opposition from the various
mortgage-lending groups.
A B I L L T A K E S SHAPE
Events moved swiftly after the October 7 meeting.
The savings and loan group revised its program to
nelude, in addition to the Federal Reserve discount
provisions, a plan for a central credit agency for
savings and loan associations. On November 2, 1931,
representatives of the League presented this program
to the President who indicated his interest in. a longterm solution to the problem but doubted if the discount provisions of the Federal Reserve Act could
be liberalized at that time. At this meeting President Hoover took from his desk a rough manuscript
which outlined the structure of a mortgage-reserve
system consisting of 12 regional banks and serving
savings and loan associations, mutual savings banks,
360
and other qualified mortgage-lending institutions.
The outline had been drafted by officials in the Department of Commerce at the request of the President whose patience had been taxed by the failure
of the various interested groups to agree on a program
for legislative action.
On November 13, President Hoover announced
that he would suggest to Congress the establishment
of "a system of home loan discount banks" and
described the Administration proposal in considerable
detail. The Finance Committee, in its report to the
Conference on Home Building and Home Ownership,
endorsed the President's efforts only in a general
fashion, with no specific reference to the proposed
bill,3 but the Conference itself on December 4 unanimously approved the plan. Four days later, the
President in his annual message to Congress recommended "the establishment of a system of home loan
discount banks as a necessary companion in our
financial structure of the Federal Reserve Banks and
our Federal land banks." On December 9 the Administration bill was introduced by Senator Watson
and Representative Luce under the title "Federal
home loan discount bank; act."
However, before hearings began, the bill was
revised and reintroduced on January 13, 1932 under
the title "Federal Home Loan Bank Act." The
rewritten bill, among other things, limited membership of banks to those institutions whose time deposits warranted long-term home-mortgage loans;
established a withdrawal procedure; and provided
for a larger business representation in the management of the regional banks.
CONGRESSIONAL H E A R I N G S
The very real interest of Congress in the home loan
bank plan may be measured in some degree by the
length of time spent in public hearings. The subcommittee of the Senate Committee on Banking and
Currency opened hearings on January 14, 1932 and
did not complete them until June 14. During this
period about 15 days were devoted to hearing the
evidence presented by some 70 witnesses. Thirty
witnesses appeared before the subcommittee of the
House Committee on Banking and Currency which
held testimony during 2 weeks in March. The
Administration as well as practically all types of
3 "The Committee recognizes the existing emergency and is in sympathy with
the view of the President that it must be met. Further, the Committee unanimously records its support of the President in any remedial measure he proposes."
William' E. Best, President of the TJ. S. Building and Loan League, submitted
a dissenting statement disapproving the weak endorsement given to the President's plan.
Federal Home Loan Bank Review
financial institutions were represented at the hearings
of the Congressional Committees.
Support of the bill was in no way unanimous.
Government officials and many representatives of the
building trades and of mortgage-lending as well as
real-estate groups urged passage of the bill both as a
recovery measure and as a needed permanent reform.
Others recognized its importance as emergency legislation but denied the need for a permanent improvement of the mortgage-credit structure. A third
group took the position that neither temporary relief
nor permanent reform was necessary.
Eventually the bill, in revised form, was reported
favorably to the House as well as the Senate. The
majority report of the House Committee was accompanied by two dissenting opinions, one embodying the objections raised during the hearings, and
the other rejecting specific features of the bill but
endorsing the idea of a home loan bank system.
The Senate Committee reported the bill essentially
as passed by the House.
T H E FLOOR D E B A T E
The House debate, which began on June 10, took
the better part of 3 days and consumed over 80 pages
of the Congressional Record. Although partisan
feeling at that time ran high in the country and in
Congress, it entered the debate only in a relatively
small measure. The Senate had a Republican
majority, while the Democrats controlled the House,
but the line-up on the bill bore no apparent relation
to party affiliations in either chamber.
The two major amendments adopted on the bilPs
first journey through the House restricted membership in the System to savings and loan associations
and limited the charges which member institutions
were permitted to make on their loans.
The debate in the Senate was both more extensive
and more controversial than in the House. I t consumed the better part of 8 days and took up approximately 185 pages of the Congressional Record. The
line-up on the bill cut across party lines in much the
same fashion as it had in the lower chamber. However, a number of "riders" irrelevant to the purpose
of the bill, such as Senator Bingham's "beer amendment", a farm-relief proposal, and a currencyexpansion measure, confused the issue and at times
jeopardized the passage of the bill. Of these, only
the currency-expansion amendment 4 was adopted.
Even the essential provisions of the original bill
met with violent opposition. One amendment proposed to substitute R F C assistance for the entire
Federal home loan bank legislation; another limited
the active life of the system to 5 years. Both were
rejected. Surprisingly, an amendment which was a
distinct deviation from the philosophy of the bill and
which was to become an extremely difficult administrative problem in the early days of the System, was
inserted without much discussion. This was the
provision for direct loans by the regional banks to
home owners w^ho were unable " t o obtain mortgage
money from any other source." In contrast to the
House version of the bill, the Senate retained
insurance companies and banks as institutions
eligible for membeiship and included even mortgageloan and mortgage-guaranty companies. The Senate passed the bill, as amended, on July 12.
T H E LAST H U R D L E S : CONFERENCE AND
APPROPRIATION
The next few days were devoted to the usual conference procedure to thrash out differences between
the Senate and House versions of the bill. A protracted struggle developed in which all points of
difference were finally resolved, with the exception
of the currency-expansion amendment insisted upon
by the Senate but unacceptable to the House.
Three times the bill went back and forth between
House and Senate; and even then, on July 16,
{Continued on p. 367)
£«jat$-«cond ^onjrm offlutBnM j$btn oj %mna;
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Bcfua end held at die City of Wutuntfon ca Monday, the oeventh
••Ay of Deceaber r eae thouund nine hundred end thirty***.
AN ACT
To create Federal Home Loan Banks, to provide for the supervision thereof, and for other purposes.'
Be U enacted by the Senate and Boute
Vnited Statet of America in. Congrett
of Rcpretcntatiees
attemiM,
of the
That this Act may
be cited as the " Federal Home Loon Bank Act."
SEC i. A s used in this Act—
(1) The term " b o a r d " means the Federal Home Loon ltank
Board.
(2) The term " Federal Home Loan Bank " meansftbank established by the board under authority of this Act.
(3) The term " State " includes the District of Columbia, Puerto
Rico, the Virgin Islands of the United States, and the Territories
of Alaska and Hawaii.
(4) The term " m e m b e r " (except when used in reference to a
member of the board) means any institution which has subscribed
< This amendment gave authority, under specified conditions, to make certain
Government bonds exchangeable for currency during a period of 3 years after
adoption of the Act; the authority was never used.
August 1942
361
A BirdVEyc View of Bank System Operations, 1932-1942
•
W I T H I N 5 months of the adoption of the Act,
the first Federal Home Loan Bank advance was
disbursed in the Winston-Salem District on December 15, 1932 to the Standard Building and Loan Association in Columbia, South Carolina. Characteristically, this advance of $65,000 had been requested
for the purpose of "making loans for repairs, modernization, additions, and other improvements, as well
as new building operations."
At that time, the Bank System was still in its
organization phase. The setting up of "bankers'
banks" in the field of home-mortgage finance required
a great deal of spade work. In addition, the early
operations of the Bank System were handicapped by
widespread misinterpretation of its functions as the
general public, in an atmosphere of political turmoil
and growing economic distress, expected the new
Government agency to extend direct and unquestioned relief to home owners.
T H E ORGANIZATION P H A S E
Three weeks after enactment of the Bill, the President appointed the first members of the Federal
Home Loan Bank Board which was to administer
the System. Four immediate responsibilities faced
the Board: determination of the Districts, capitalization of the regional Banks, recommendation of enabling State legislation, and organization of the Banks.
The Act provided for not less than eight nor more
than 12 Bank Districts, to be apportioned with due
regard to convenience and customary course of business of eligible members. No District was to include a fractional part of a State. After studying
the number and location of eligible member institu362
tions, the distribution of outstanding mortgage debt,
and the trends of current lending activity, the Board
decided to establish 12 Districts. The boundaries
today are as originally constituted. The Banks, as
required by the Act, took their names from the cities
in which they were located. Only three Banks have
since been moved from their original locations.
Using the data prepared for districting purposes,
a minimum capital for each Bank was projected making a total of $134,000,000 for the entire System.
Initial member subscriptions aggregated $9,259,000,
and in accordance with the provisions of the Act, the
Treasury subscribed to the balance. Both the districting and the projection of Bank capital were
completed by August 23, 1932.
At the beginning of operations, laws in only seven
States permitted eligible institutions to become members of the System. Immediate passage of enabling
legislation in other States was made difficult by the
fact that 33 legislatures were not scheduled to meet
until after January 1, 1933, and the Act had therefore provided that eligible institutions might become
temporary members for 1 year or until the next
meeting of their State legislatures. However, many
were hesitant to apply for membership in the absence
of specific State legislation.
By the end of March 1933 this obstacle had been
largely removed as 43 States had paved the way for
potential members to join the System and to take
advantage of its services. However, the legislation
in some States contained many conditions limiting
the extent to which members could use the facilities
of the Bank System. I t was several years before
more adequate legislation was adopted in each State.
Federal Home Loan Bank Review
During October 1932, the 12 Banks opened for
business, and on November 22, exactly 4 months after
enactment of the Federal Home Loan Bank law, the
first membership application—by the Greenfield
Building and Loan Association, Pittsburgh, Pennsylvania—was approved by the Board. At the
year-end the Bank System comprised 101 member
institutions, and advances totaled $837,500.
functions of the System. A bill to repeal the Act,
already brought up in December 1932, was again
introduced in March 1933 but the measure was not
reported by the Senate Banking and Currency
Committee. Nevertheless, the mere threat of repeal
acted as a deterrent to a speedy development of the1
System.
T H E PROBLEM OF D I R E C T LOANS AND THE T H R E A T
OF R E P E A L
After the new Administration came into power the
roster of the Federal Home Loan Bank Board remained incomplete until June, when the newly
formed HOLC was placed under its jurisdiction and
all vacancies were filled.
The difficulties which beset the early period of
operations helped at the same time to clarify the true
functions of the System. By the Summer of 1933
the smoke that beclouded the beginnings of the new
agency had cleared away. Direct relief to home
owners had been assigned to the H O L C ; the danger
of repeal was removed; and the Federal Home Loan
Bank System was able to apply itself fully to its
permanent career as a National credit reservoir for
thrift and home-financing institutions.
In mid-year 1933, the membership had jumped to
1,319 institutions and cumulative Bank advances
totaled almost $50,000,000. Two years later there
were 3,000 members, and gross advances aggregated
over $148,000,000. Combined resources of member
institutions rose steadily from less than $2,000,000,000 at the end of the first year of operation to
approximately $4,000,000,000 in the Summer of 1937.
By that time, the Banks had made cumulative
advances of $341,000,000 of which over one-half was
outstanding. At this point, about midway in its
10-year career, the System passed an important
Meanwhile, the regional Banks w^ere deluged with
applications by distressed home owners for direct
loans. Through June 1933, when the HOLC was
created as an answer to this problem, almost 42,000
applications and inquiries were received. The fallacy
of the direct-loan provision immediately became
apparent. The theory of the Federal Home Loan
PRESENTATION OF CHECK FOR FIRST FEDERAL HOME LOAN B^
Bank Act was one of wholesale operation with local
financial institutions. Yet, when the direct-loan
amendment was adopted, no change was made in the
conservative lending powers—fitting for a central
reserve credit organization—which had been prescribed in the Bill. This disqualified the vast
majority of requests for direct loans. Only one of
the 12 Banks closed any such loans—three in
number and totaling $9,000. The cost of handling
applications for direct loans was estimated at over
$136,000 for all Banks and was responsible for the
deficit shown in the first fiscal year.
The failure of the direct-loan provision strengthened moves to scrap the Federal Home Loan Bank
Act as the need for immediate assistance to home
owners overshadowed the real and permanent
August 1942
T H E D E C K S A R E CLEARED
PROGRESS OF MEMBERSHIP
AS OF JUNE 3 0 EACH YEAR
NUMBER OF INSTITUTIONS
OF'OOLLARS
IL.1 I I L'i f J Li LJ LI LI LJ r.'Ji
1933'34
'35
'36
'37
'38
'39
'40 '41
'42
ASSETS
OF I N S T I T U T I O N S
In
1-1H111111 ii LI \i 1
1933 '34 '35 '36 '37 '38 '39 "40 '41 '42
363
milestone by the flotation of the first issue of consolidated Federal Home Loan Bank debentures.
T R E N D S IN M E M B E R S H I P
The Fall of 1938 saw the peak in membership—
nearly 4,000 institutions. Since then the number of
member institutions has been declining until on June
30 of this year there were 3,815 membership certificates outstanding. Primary factor behind this drop
has been a wholesome process of consolidations and
mergers of many of the smaller or inactive member
savings and loan associations. This process has
created larger and more vigorous institutions capable
of playing an important role in the thrift and homefinancing activities in their communities.
The growth in member assets meanwhile has continued without interruption. At the end of 1940,
aggregate resources of member institutions passed
the 5-billion-dollar mark and today they are in excess
of $5,680,000,000. The importance of Bank members in the mortgage-financing field is demonstrated
by the fact that loans of over 1 billion dollars have
been made by these institutions in each of the past
2 calendar years.
B A N K ADVANCES APPROACH THE
MARK
BILLION-DOLLAR
During their first 10 years of operation, the Federal
Home Loan Banks have advanced almost 1 billion
dollars to thrift and home-financing institutions.
Through June 30, 1942, gross advances have been
made totaling $929,000,000, and repayments have
been received in the amount of more than $736,000,000. Both the volume of new loans made and of
repayments received during the past fiscal year were
the highest on record.
The period from the beginning of operations
through the close of 1933 was one of rapid growth to
a level of over $85,000,000 in advances outstanding as the initial requests for money were satisfied.
The subsequent year saw little change. With the
gradual recovery of home construction and homefinancing activity, a period of rapid expansion began
in April 1935 which lasted until the end of 1937 when
the balance of advances crossed the $200,000,000mark. This level was relatively well maintained
throughout 1938. A sharp drop in the first few
months of 1939 was somewhat offset by the seasonal
recovery in the second half of that year, but a further
decline during the first half of 1940 brought advances
outstanding to the lowest level recorded in recent
years ($134,000,000). From this low, the balance of
advances rose to an all-time high of more than
$219,000,000 at the end of 1941. Repayments during the first half of the current year were partially
offset by the seasonal recovery in June, and the
balance at the end of the month was $192,645,000.
As the Federal Home Loan Bank System became
more firmly established, it attained a strategic position in the supply of credit to its members: Ever
since 1938 the combined balance sheet of member
savings and loan associations has shown Bank advances to account for over 90 percent of their total
borrowings.
VARIATIONS IN THE DEMAND FOR ADVANCES
Experience of the past 10 years has brought out
certain characteristics of the demand for Federal
Home Loan Bank advances: First, there are strong
seasonal factors operating around the June and December dates when many member savings and loan
associations declare their dividends. High demand
for advances during these months has regularly been
followed by more than normal repayments in January and July. Second, with the exception of 1933
and the period of rapid expansion during 1936-37,
the first half of every year has shown an excess of
repayments over advances and a net reduction in
the outstanding balance. Conversely, the second
half of every year has witnessed an increase in the
outstanding advances to members as the demand for
new loans exceeded repayments.
364
Federal Home Loan Bank Review
Emphasis on the use of short-term or long-term
advances has varied greatly during the first decade
of operation. In the initial period the predominant
demand was for short-term money, but from 1934
through 1936 long-term advances represented roughly 60-70 percent of the total outstanding, and they
continued to grow in importance until the middle of
1939 when 80 percent of the balance of advances
was of the long-term variety. Since then, shortterm borrowing has again become more common.
In June of this year the distribution of long-term
and short-term advances was approximately in the
ratio of 60-40. The various uses which members
may make of these borrowed funds at one time or
another, the flow of private savings into member institutions, and interest-rate differentials for long-term
and short-term advances are among the factors explaining members' preference for either type of money.
Regardless of the type of advance involved, it is
significant that in almost a billion dollars of lending
thus far, not a penny of loss has been incurred. In
fact, except for five borrowers now in liquidation,
there was not a single institution delinquent for more
than 30 days at the end of June. This is probably
the most eloquent proof of the safeguards surrounding the lending operations of the Banks.
D E P O S I T SERVICES
Member deposits have varied between $25,000,000
and $35,000,000 during the past 3 fiscal years after
rising steadily to this level in the first 6 years of
operation. The trend in the past year has been
gradually downward, and at the end of June these
accounts had dropped to $27,700,000. While member deposits do not constitute a major source of funds
for the Banks, they do represent a convenient means
of establishing liquidity positions for many member
institutions.
Interbank deposits have proved to be a useful
vehicle for shifting funds within the resources of the
System itself, to arrange for an interregional flow of
money from areas of plenty to localities of scarcity.
The volume of outstanding deposits of this type has
varied greatly over the past decade, ranging from
$1,000,000 to over $15,000,000 at fiscal year-ends.
Their importance can more readily be grasped by
the fact that to date more than $114,000,000 has
been transferred from Bank to Bank by this means.
DEBENTURE-FINANCING B E G I N S IN
1937
For almost 5 years from the beginning of operations, the capital of the Banks was sufficient to
August 1942
meet the need for loanable funds. In 1937, however,
the steadily increasing demand for advances resulting from the growth of the Bank System and the
rising activity of its member institutions called for
additional resources. In May of t h a t year, the first
issue of consolidated Federal Home Loan Bank
debentures was floated on the securities market.
Altogether, 11 separate series of debentures have
been issued totaling $292,700,000 and the subscriptions for each issue have exceeded by far the
amount offered for sale. Four series aggregating
$91,500,000 are still outstanding although all will
mature by April of next year.
Interest rates on the first few series varied from 1
to 2 percent, b u t those on the six most recent issues
have been below 1 percent. Maturity dates have
ranged from 2 months to 5 years. The tendency in
the past 2 years has been toward the issuance of
short-term securities which explains in part the lower
rates of interest. These consolidated debentures
are the joint and several obligations of all of the
Federal Home Loan Banks, but participation by
the individual Banks has varied considerably as
shown in the charts on pages 368 to 371.
GROWTH AND COMPOSITION OF ASSETS
Consolidated assets of the 12 Federal Home Loan
Banks have grown from little over $50,000,000 at
the end of the first year of operation to more than
$300,000,000, and on June 30, 1942 reached the
highest figure for any fiscal year-end date.
Cash, investments in Government securities, and
advances to member institutions account for virtually all of the assets of the Banks. The first two
365
measure the immediate ability of the System to
meet demands for additional advances, while the
latter indicates the extent to which credit needs
have already been met. In the earlier years of operation, the proportion of cash and holdings of Government securities which could be converted into cash
ranged from 10 to 30 percent of total assets. During
the past 4 years, however, it has been raised to 30-40
percent, and at the end of June these liquid assets
made up 38 percent of the Banks' total resources.
CAPITAL STRUCTURE OF THE TWELVE BANKS
MILLIONS
175
RESERVES AND
1
UNDIVIDED
PROFIT^m^-—
150
'm^(MEMBER^STOmM
125
IS
§111
fill
100
A - ^ ? ' 1 •.:•.;.;
'/;/-:-•'
75
A JOINT GOVERNMENT-BUSINESS ENTERPRISE
When the Federal Home Loan Bank System was
created, subscription to the Banks' capital stock
represented the first Government assistance ever
extended in the field of home finance. At the end
of June 1933, the Treasury had paid in $43,000,000,
and by November 1937 the Government-owned
capital stock had almost reached its statutory maximum of $125,000,000. I n the meantime, stock
subscriptions by member institutions had steadily
increased and at this point represented approximately
21 percent of the total paid-in capital stock of the
Banks. On June 30, 1942, stock held by members
accounted for 29 percent of the total which was in
excess of $175,500,000.
In 10 years of operation the Federal Home Loan
Banks have accumulated reserves and undivided
profits in the aggregate amount of more than
$14,000,000—equal to 4.6 percent of their present
assets and 8 percent of the capital stock. These accounts have been increasing about $2,000,000 per
AS OF JUNE 3 0 EACH YEAR
OF DOLLARS
M
50
tit
>S.'-/S^-v
mm
mm
GOVERNMENT^ STOCK:-::::
t'{
25
0
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
DIVISION OF RESEARCH AND STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
year since 1937. The total capital of the Banks now
is close to $190,000,000.
T H E INCOME AND E X P E N S E PICTURE
The record of income and expense of the 12 Federal Home Loan Banks is instructive in view of the
fears expressed by opponents of the Act 10 years ago.
At that time it was argued that the Banks would
never be able to operate without subsidy and that
they would become a heavy burden on the public
treasury. How did they fare?
Through June 30, 1942 the total gross income of
the Banks has amounted to $50,000,000 and their
net income was $32,500,000. They have been
SOURCE AND DISTRIBUTION
OF INCOME
JULY 2 2 , 1 9 3 2 - J U N E 3 0 , 1942
SOURCE OF INCOME
NON-OPERATING
INCOME
5.7%
INTEREST ON
INVESTMENTS
12.1%
DISTRIBUTION
ASSESSMENTS-FHLBA.
5.3%
OF INCOME
INTEREST ON
^ DEPOSITS
2.2%
DISTRIBUTION OF
"NET" INCOME
MISCELLANEOUS
1.7%
INTEREST ON
DEBENTURES
9.3%
ADMINISTRATIVE £
EXPENSE
16.6%
^GOVERNMENT
^^
$50,141,000
$50,141,000
^
ST0CK
$32,519,000
DIVISION OF RESEARCH AND STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
366
Federal Home Loan Bank Review
entirely self-supporting and the Government investment in capital stock has yielded a moderate return.
With the exception of the initial period of operation,
the Banks have been in the black each year throughout their existence.
Slightly more than four-fifths of the gross income
during the past decade has been derived from the
interest charged on advances to member institutions.
An additional 12 percent has been received from the
investments of the Banks and the remainder from
non-operating income items.
Compensation, travel, and other administrative
expenses have absorbed 17 perceut of gross income.
Second largest charge—9 perceat—has been the
interest on debentures. Annual assessments for expenses of the Federal Home Loan Bank Admiuistratiou, averaging approximately $300,000, have been
equal to 5 percent of income. Other expenses and
non-operating charges make up the balance of deductions. The total of all these charges has absorbed
35 percent of gross income.
Dividend payments to the Federal Government
and to member institutions on their holdings of
Federal Home Loan Bank stock have amounted to
57 percent of the net income of $32,500,000 for the
10-year period. The Government has received more
t h a i $14,000,000 while members have been paid a
total of over $4,000,000. Annual dividend rates have
varied from 1 to 2 percent per year.
One-fourth of all net income earned in these first
10 years of operation has been set aside in reserve
accounts. This is substantially in excess of the legal
requirements and aggregates almost $8,300,000. In
addition, another $5,800,000 is being held in the
undivided-profit accounts of the Banks and serves as
additional protection for holders of the consolidated
Bank debentures and of capital stock.
T R E N D S IN THE INDIVIDUAL BANKS
The next four pages present an individual chart
and brief narrative description for each of the 12
Federal Home Loan Banks. The major balancesheet accounts are discussed as well as the trend in
net operating income during the decade. Fluctuations in membership and the steady growth of the
assets of member institutions are also shown in a
separate box. The data presented are for June 30
of each year from 1933 through 1942.
The Path We Came By
(Continuedfrom
before the end of the session, the two chambers
seemed in deadlock until the lower chamber receded
in order that the Federal Home Loan Bank bill
might be saved. With the narrow margin of 6 votes
(120-114) the House concurred in the Senate amendment and passed, in effect, the Federal Home Loan
Bank bill.
There remained the hurdle of an appropriation to
make the Bank System work. There was real
danger that the legislation might be "spiked'', on
this last day before adjournment, by failure to
obtain the necessary unanimous consent to the suspension of a Senate rule requiring appropriation bills
to lie over for a day. However, this danger was
circumvented by a parliamentary device. The appropriation bill was offered in the form of an amendment to a measure "to authorize the closing of a
portion of Virginia Avenue S. E. in the District of
Columbia", which had already been read a second
time in the Senate, and was agreed to.
On July 22 both the Federal Home Loan Bank
bill and the Appropriation bill were signed by the
President.
August 1942
p. 861)
Considering the labyrinthian course that the
Federal Home Loan Bank measure took in Congress,
major alterations of the original bill were few.
Perhaps the most important changes were the
" direct-loan'' provision and the exclusion of commercial banks from membership, which left as eligible
members the following types of institutions: building,
savings and loan associations, cooperative banks,
homestead associations, insurance companies, and
savings banks.
None of the later amendments have affected the
basic structure of the Bank System as embodied in
the Act of 1932. They were rather of a technical
nature or were caused by adaptations to legislative
measures taken in subsequent years. The only exception was the direct-loan provision added to the
original bill in Congress. This section was deleted
by amendment in 1933, when the Home Owners'
Loan Corporation w^as created to extend direct
assistance to home owners on a much larger scale
than was contemplated at the time the Federal
Home Loan Bank Act was placed on the statute
books.
367
FHLB OF BOSTON
• • •
—
• n i Mill
• Mill
FHLB ADVANCES
L-——^
OUTSTANDING
I
FHLB
ADVANCES
_--•••••••
OUTSTANDING
ADVANCES
FHLB
OUTSTANDING
=
'-^
^jg=g
CASH AND GOVERNMENT
FHLB OF PITTSBURGH
FHLB OF NEW YORK
r
/
\T
CASH AND GOVERNMENT BONDS
BONDS
CASH AND GOVERNMENT BONDS
TOTAL
CASH >
GOVERNMENT BONOS
W
CAPITAL
GOVERNMENT B O N O S ^
GOVERNMENT BONOS
mn.
^zz
MEMB£gg^
r£Z£//z
^
1933
'34
'35
'36
FHLB
DEBENTURES
'37
'38
'39
RESERVES AND
UNDIVIDED PROFITS,
2.0
*40
1 #
_EL
1933
'34
'35
'36
'37
RESERVES AND
UNDIVIDED PROFITS
NET INCOME
_l_1
1933
1942
NET INCOME
2.0
1—1
'34
1_1
'35
n 1
L_l_
'36 '37
RESERVES AND
UNDIVIDED PROFITS
-25
-38
1.0
.5
MEMBER
INSTITUTIONS
1000
800
600
400
200
0
i
'39
i
'40
li.
'41
1942
NET INCOME
1.5
1.0
'0
'38
2.0
.5
FHLB of BOSTON: Asset trend steadily
upward throughout the period. Proportion of cash and Government bonds
now the highest for any Bank (53%).
Sharp increase in outstanding advances
to members noted in past year, although
cumulative lending to date ranks 9th
among all Districts. Did not participate in debenture issues until 1942, and
lists only 4% of outstanding total on its
balance sheet. Member holdings equal
to 30% of total stock of the Bank—
about on a par with the average for all
Banks. Accumulation of surplus has
absorbed one-third of total net income
for the 10-year period. Ratio of reserves
and undivided-profit accounts is equivalent to 2.9% of assets; to 4 . 1 % of capital stock.
Number as well as assets of members
have risen each year since 1933.
Member assets now 2nd largest for any
Federal Home Loan Bank District.
'41
DEBENTURES
1.0
illllll .11
368
. .. 1
'40
1.5
.600
JI
'39
FHLB
.5
MEMBER
u i
M _
MEMBERS/
DEBENTURES
1.5
WTTurrrTT
KL^HI
*GOVJ£NMEJ^
ENT^^^^
FHLB
ma
CAPITAL STOCK
TOTAL
TOTfAL
-m
CAPITAL STOCK
STOCK
%J]
0
>>*ift«cr^oo<»0-
INSTITUTIONS
MEMBER
.600
1000
800
600
400
200
JllilJ jIMlll
D t » CO O) O
-
FHLB of NEW YORK: A substantial increase in assets during the past year
raised the total above $37,000,000—2nd
largest of the 12 Banks. Recent gains
have been reflected in outstanding advances, which are also the 2nd largest.
Cumulative loans to members exceed
$100,000,000. Only 3 Banks have
passed this mark. A sharp rise in advances and a relatively low ratio of
liquid reserves are clues to the initial
participation in debenture-financing during 1941. Capital stock is the largest in
the System; 23% is held by member
institutions. Net income since 1932
totals almost $4,000,000—35% of which
is in reserves and undivided profits.
Ratios of these accounts to assets and
capital stock are 3.7 and 5.7 percent,
respectively.
Member assets at the end of June
totaled almost $500,000,000 and held
4th rank in the System.
INSTITUTIONS
,600
1
0* O
Oi <7> 0> O
1000
800
600
400
200
AlUllili 'o
-.
- # .-> IO IO IO «Q *
*
%
FHLB of PITTSBURGH: Assets during the
past fiscal year have been only slightly
below the peak of December 1940, and
at the end of June were just over
$25,000,000. Advances to members
have been rising, but are still below the
1938-1939 level. Cumulative advances
rank 6th among the 12 Districts.
Capital stock is also about average size,
with 22 % owned by member institutions.
Nert income for the 10-year period ranks
5th among the Banks, and almost onehalf has been placed in reserve and undivided profit accounts. Ratios of
these surplus items to assets and to
capital stock of 5.8% and 10.2%,
respectively, are the 2nd highest among
the various Banks.
Membership reached its peak in 1938,
but assets of member institutions continue to climb, indicating an increase in
the average size of members which has
been relatively small.
Federal Home Loan Bank Review
FHLB of WINSTON-SALEM: Assets on
June 30 were at the highest point in the
decade and ranked 3rd among the
Banks. Present volume of advances
outstanding also ranks 3rd, but the
cumulative loans to members are the
l a r g e s t in t h e S y s t e m — a l m o s t
$133,000,000. Thus far, the B a n k ' s
share in debenture issues has been 15%
and it showed the largest amount outstanding for any Bank on June 30.
Members hold almost 40 percent of the
$15,000,000 of capital stock—the 2nd
highest ratio. Net income for the
period ranked 4th, and 57% was
allocated to reserves and undivided
profits, the highest proportion for any
Bank. Ratio of these accounts to
capital stock is 11.8%, ranking 1st,
and to total assets, 5.1%.
The assets of member institutions have
been moving steadily upward and now
hold 3rd place.
FHLB of CINCINNATI: Gradual decline
in assets since 1938 has been marked by
the retirement of most of this Bank's
outstanding FHLB debentures and a
drop in advances to member institutions.
Outstanding advances on June 30 were
about one-half the 1938 peak, and
debentures on that date were only 3 %
of the total outstanding. Capital stock
is in excess of $21,000,000, and 40.1%
held by members—the highest ratio for
any Bank. Total net income was the
largest among the 12 Banks, and so was
the amount set aside in reserve and
undivided-profit accounts. Ratios of
these accounts to total assets and capital
stock of this Bank were 5.8% and 8.6%,
respectively.
The number and assets of member
institutions of the Cincinnati Bank are
the highest in any District. Their
assets are now approaching the billiondollar mark.
FHLB OF WINSTON-SALEM
-
^
_
J
H
L
_
J
f
l
FHLB of INDIANAPOLIS: Assets on
June 30 were at the highest level during
the decade and are nearing $24,000,000.
Advances made during the past 12
months were exceeded only in 1937, and
the balance outstanding at the end of
June was the greatest on record for that
date. Cumulative advances of more
than $53,000,000 stood 10th among the
Districts. June statement showed 47 %
of liquid assets (cash and Government
bonds). T h e B a n k a c c o u n t e d for
almost 10% of outstanding debentures.
Capital stock exceeded $10,000,000
during the past year and the ratio of
member holdings was the 3rd largest.
More than 40% of the $2,100,000 net
income has been retained in surplus
accounts. Ratio of reserves and undivided profits to total assets is 3.7%;
to capital stock, 8.6%.
On June 30, the 218 members had
aggregate assets of $315,000,000.
FHLB OF INDIANAPOLIS
FHLB OF CINCINNATI
• •11
L
FHLB ADVANCES OUTSTANDING
IIIIJ
ADVANCES OUTSTANDING
FHLB ADVANCES OUTSTANDING
CASH AND GOVERNMENT BONDS
CASH AND GOVERNMENT BONDS
FHLB
f^
CASH AND GOVERNMENT BONDS
TOTAL
TOTAL
GOVERNMENT
- —
• •
SB
BONDS.
BO
MB T M
|
[JJCASHJJI illy HJjj l y j
VTri
On)
lUlL
CAPITAL STOCK
am
BSOVERNMENT
C A S H
a • 1 •
BONDS*!
'34 '35 '36 '37 »38 '39 '40 '41
RESERVES AND
UNDIVIDED PROFITS
2.0
NET
1942
1933
CAPITAL STOCK
FHLB DEBENTURES
FHLB DEBENTURES
m Km P.
'34 *35 '36 '37 '38 '39 '40
RESERVES AND
UNDIVIDED PROFITS
INCOME
2.0
1.0
1.0
.5
.5
0
NET
1933
' S <*
I N 9 J I O -
MEMBER INSTITUTIONS
,600
rr> •* <r> <£> r^ 0 0 e » O
1000
800
600
400
200
0
INCOME
-
0
August 1942
473898—42-
) f - 00 Cft O — t"J
n r , r i r ) fO fO (O if T *
Oft Oft 0> 0ft Oft Oft Oft 0ft O Oft
^
NET
2.0
1942
INCOME
1.5
y
r> to r» co oft O
1.0
'
.5
.
-
1 <tf f - CO Oft O
MEMBER
-
1 Oft Oft Oft Oft oft C
1000
800
600
400
,200
0
Li
l i J L-r
l/mtml
0
>**><ef-eocftO-
0ft O Cft Oft Oft 0
MEMBER INSTITUTIONS
.16OO
,11
Jlllll 1
.,1111 1
DMoaiO-
'35 '36 '37 '38 '39 '40 '41
RESERVES AND
UNDIVIDED PROFITS
Cft Oft Oft Oft 0 * <J> Oft Oft fl
oftoftcftoncftcftcftoftc
*34
™ALnm
H a l l
..EI_
1.5
1.5
00
T
CAPITAL STOCK
f\
1933
v™
I]M GOVERNMENT
1 1 1BONOS1
B
INSTITUTIONS
,600
UuWlil
rmujt^coeftO— M
1000
800
•imilllH
400
200
•ffo
»
<7><y>O>O<7*0>IT><l»<T*
369
FHLB OF CHICAGO
HE iEI
F H L B ADVANCES
FHLB OF LITTLE ROCK
FHLB OF DES MOINES
• Mill
• •
OUTSTANDING
FHLB
ADVANCES
• •••••••I
F H L B ADVANCES
OUTSTANDING
OUTSTANDING
^r
L^S*T:
^
CASH ANO GOVERNMENT
BONDS
CASH AND GOVERNMENT BONDS
CASH AND GOVERNMENT BONDS
_TOTAL
GOVERNMENT BONDS.
GOVERNMENT BONDS^
.
CAPITAL
CAPITAL
STOCK
1
TOTAL
MEMii^S^
77/^/TZ
_«_
L
ss$ ^
///A
FHLB
DEBENTURES
m
1933
34
'35
'38
'37
RESERVES AND
UNDIVIDED PROFITS
ml
|
'38
39
'40
*4
1933
94 8
'34
STOCK
1
HI
'35
'36
J GOVERNMENTS?
FHLB
DEBENTURES
JSL
'37
ITilfi
'3»
'39
RESERVES AND
UNDIVIDED PROFITS
NET INCOME
ran
TOTAL
FHLB
T
CAPITAL
STOCK
MEMBERS-
OOVI A N M E N T &
CASH
_Jii_JBL.
'40 '41
NET
1933
'34
'35
'36
DEBENTURES
_E3
'37
RESERVES AND
UNDIVIDED PROFITS„
2.0
INCOME
£3
Rvl
'39
NET
17TI
'40
c=n E l
'41 1942
INCOME
1.5
1.0
FS
.5
o
0
Ci O y f t f t i v 9 > 0 > 0 ) f
MEMBER
-i600
mi
kuimii
INSTITUTIONS
r^nTs
11000
iiiillUl
800
600
400
200
0
FHLB of CHICAGO: Largest of t h e
Banks in point of assets, this institution
also shows t h e highest volume of advances outstanding.
Present totals,
however, are well under peak operations. Cumulative loans to members
($115,000,000) a r e t h e 2nd largest in a n y
region. A consistent usei* of debentures,
this Bank's share was 1 8 % of o u t s t a n d ing issues, a n d it has accounted for onefifth of all series floated. Capital stock
of almost $20,000,000 is t h e 3rd largest
in t h e System a n d • 29 % is owned by
members. T o t a l n e t income for t h e
10 years ranks 2nd among t h e Banks,
a n d reserve accumulations s t a n d 3rd in
dollar volume. Ratios of reserves a n d
undivided-profit accounts to assets a n d
capital stock are 3.9% a n d 8.5%, respectively.
Membership roll has declined since
1937; member assets are approaching
the half-billion dollar mark.
370
MEMBER INSTITUTIONS
-.600
„ • • • • • • •
ulllllJJI
MMLIL
MEMBER INSTITUTIONS
1600
1000
800
600
400
200
0
liilll
.JIIIIIIII
^ + 0 (O N B
«C
i o> Ci <r <y> o i &t
FHLB of DES MOINES: Assets in J u n e
were only slightly below t h e previous
high for t h a t m o n t h set in 1941, despite
the retirement of F H L B debentures.
T h e balance of advances outstanding
(over $14,000,000) ranked 7th. Total
advances to member institutions since
1932 also ranked 7th. Approximately
40 percent of J u n e assets were in cash
or Government bonds. I t s share of outstan ding debentures (11%) was j ust above
its participation in all issues. Capital
stock of $10,500,000 s t a n d s 10th, with
2 9 % member-held. T o t a l n e t income
amounts to $2,165,000, with more t h a n
$900,000 p u t away in reserves a n d undivided profits. Ratio of these items to
total assets is 4.0%; t o capital stock,
8.8%.
Increase in membership during t h e
past 2 years has raised t h e t o t a l t o t h e
1939 fiscal-year peak. Member assets
have, shown unbroken gains.
1000
800
600
400
200
-•HII
mjilllli
FHLB of LITTLE ROCK: Assets of $15,200,000 on J u n e 30 were above 1941, b u t
still under 1938-1939 levels for this
date.
Advances increased 2 2 % over
1941, b u t t h e balance o u t s t a n d i n g was
well below previous peaks. Cash a n d
Government bonds accounted for 3 6 %
of t o t a l assets a t t h e end of J u n e . Although adding debentures during t h e
year, its share of outstanding issues was
among t h e smallest for a n y Bank.
Capital stock a m o u n t e d t o $11,200,000,
of w h i c h 2 2 % was member-owned.
Net income in t h e 10-year period totaled
almost $2,000,000, with 4 6 % set aside
as surplus funds. T h e ratio of reserves
a n d undivided profits to t o t a l assets
(5.9%) was t h e highest for a n y B a n k ;
to capital stock, 8.0%.
A membership of 281 institutions
with assets totaling almost $400,000,000
placed this Bank in t h e middle of t h e
range for all Districts.
Federal Home Loan Bank Review
FHLB of TOPEKA: Despite t h e retirem e n t of F H L B debentures, assets of t h e
Bank have about maintained 1940-1941
levels. Advances outstanding on J u n e 30
were t h e lowest for t h a t date since 1936,
a n d were t h e smallest for a n y region.
Cumulative loans have passed t h e
$40,000,000-mark. Cash a n d Governm e n t bonds were equal t o 4 8 % of total
assets. T h e Bauk h a s t h e smallest
share of debentures outstanding. Capit a l stock now exceeds $9,300,000 with
2 1 % in t h e h a n d s of members. Almost
5 2 % of n e t income t o date h a s been
allocated t o reserves a n d undivided
profits—3rd highest proportion for a n y
Bank. Ratio of these items t o assets is
5.0%; t o capital stock, 7 . 9 % .
On J u n e 30, there were 223 members
with assets of almost $200,000,000.
The drop in assets from 1941-1942 was
occasioned b y liquidation cases a n d
withdrawal of 2 insurance companies.
FHLB of PORTLAND: Assets of t h e P o r t land Bank reached a new high a t t h e
end of 1941, b u t are now just under t h e
ievel of a year ago. Outstanding a d vances a r e next t o t h e smallest for a n y
Bank. Cumulative t o t a l of advances
(over $51,000,000) also ranks 11th.
Cash a n d Government bonds were equal
to 4 0 % of assets on J u n e 30. F H L B
debentures outstanding a r e $3,000,000,
a n d t h e B a n k ' s share of all series issued
has been only 3 % . Capital stock is t h e
smallest for a n y Bank, a n d member
holdings (20.7%) r a n k 12th. Half of
t h e n e t income in 10 years h a s been
retained in reserves a n d undivided profits. Ratios of ,these accounts t o total
assets (5.3%) a n d t o capital stock
(8.7%) were relatively high.
T h e n u m b e r of member institutions
has shown little change in t h e past 6
years, b u t assets of members have more
t h a n doubled in t h e same period.
FHLB OF TOPEKA
FHLB OF PORTLAND
• 111
FHLB
ADVANCES
OUTSTANDING
FHLB
ADVANCES
FHLB of LOS ANGELES: Assets at the
end of J u n e were exceeded only in J u n e
1939, a n d stood 5th among t h e 12
Banks. Outstanding advances registered a good gain during t h e past year,
a n d records were set for both new a d vances a n d r e p a y m e n t s .
Cumulative
advances since 1932 are in excess of
$92,000,000. Cash a n d Government
bonds accounted for 3 0 % of J u n e assets.
T h e Bank's share of outstanding debentures is 9 % — a b o u t equal t o its share of
all series issued. Capital stock a m o u n t s
to $13,700,000, of which 2 8 % is memberowned. N e t income for t h e past 12
m o n t h s was t h e highest in 10 years.
Accumulated surplus totals over $1,100,000. Reserves a n d undivided profits t o
t o t a l assets a n d capital stock are 4 . 3 %
and 8 . 1 % , respectively.
With next t o t h e smallest number of
members, assets of these institutions
r a n k 6th among t h e 12 Districts.
FHLB OF LOS ANGELES
. 111111
U
.0
•o
OUTSTANDING
FHLB ADVANCES
OUTSTANDING
30
20
10
0
CASH AND GOVERNMENT
BONDS
CASH AND GOVERNMENT BONDS
CASH AND GOVERNMENT
BONDS
30
20
T0TA
CASHV
GOVERNMENT BONDS
•TVM
TOTAL
GOVERNMENT
H ^
BONDSN
BB l l 11
:MBERS-J
MEME ERSTOTAL
522 £?8 S88&60V •"R^MENY*;
FHLB
DEBENTURES
_
10
—rrrn—
CASH
_
_
_ -\a - i •
CAPITAL ST(DCK
CAPITAL STOCK
FHLB
GOVERNMENT' BONDS
BUNUSN
TO
a l l
0
CAPITAL STOCK
30
20
MEMBERS-^
\
^77^777^7?
10
TOTAL^jg
T&5
^GOV^NMENT|
mm te_
0
DEBENTURES
FHLB
DEBENTURES
30
20
'35 '36
RESERVES AND
UNDIVIDED PROFITS
'37 '38
2.0
P
ESI W\
'39 '40
NET
1933 '34
'35
'36 '37
INCOME
-3,
'39 '40
'41
1942
RESERVES AND
UNDIVIDED PROFITS
1.5
1.5
S
'38
RESERVES AND
UNDIVIDED PROFITS^
2.0
1.0
1.0
.5
.5
MEMBER
«* "X
INSTITUTIONS
<o •j: «o O) o
—2?
0
MEMBER
JA
' ^/
«*
\J
5
IO
io
u» N 00 <D O
J
-
<M
INSTITUTIONS
1000
800
800
600
600
600
ASSETS
NUMBER
millA 0
1000
400
• I I I llisfl'o
10
* m
•••••••III
933
934
935
936
937
938
939
940
941
942
200
.5
800
400
August 1942
MET INCOME
2.0
1.0
0(T*<T><TtO>OiO>0>0>0
1000
'0
1.5
0
MEMBER INSTITUTIONS
600
10
il o r a l
m
-41
1933 '34
m
200
0
.UULUIIH
•mllllll
400
200
0
37!
War bond sales in July
below goal
As this issue was going to press
reports on the war-savings campaign
in July indicated bond sales of
$900,900,000. This was 10 percent
short of the goal but represented an
increase of 40 percent over the June
figure.
As anticipated, the largest gains
were registered in the sale of F and G
bonds, owing to the raising of annual
purchase limitations for these series.
Total sales of F and G bonds were
$393,000,000 compared with $200,000,000 in June. Sales of Series E bonds
rose from $433,000,000 in June to
$508,000,000 in July.
Publication of the July results was
accompanied by an announcement
that the goal for August was reduced
to $815,000,000. The Treasury pointed
out that because of seasonal variations
in income distribution it would not be
practicable to set monthly quotas at
a uniform figure. However, the
$12,000,000,000 goal for the fiscal
year beginning July 1 will be maintained.
ft ft ft ft ft
Baltimore associations sponsor
war bond rally
What savings and loan associations
are doing, and can do, to promote the
war-savings drive is illustrated by the
"On-To-Victory" campaign sponsored
by a group of these institutions in
Baltimore, Maryland. Following three
preliminary street rallies, this campaign culminated in a Freedom rally
on July 6 for which speakers of national reputation as well as local civic
leaders and well-known entertainers
were secured.
Net result: over
$1,250,000 in war bonds and stamps
sold in conjunction with this special
drive.
The success of this effort is reflected
in requests from neighboring communities that rallies be held there, and in
numerous quests for information regarding "how it was done."
The sponsors defrayed the initial
expenses and mapped out the campaign with the assistance of the State
Administrator of the war-bond pro372
gram. One important by-product of
the campaign has been a demonstration
of the ability of savings and loan
associations to shoulder a major share
of Maryland's war-bond drive. The
State Administrator has now assigned
to them the handling of contacts with
small business concerns and has appointed a savings and loan executive to
assist him in this job as well as in
planning other aspects of a State-wide
campaign.
ft
ft
ft
ft
it
Over 1 0 0 , 0 0 0 housing units
exempted from lumber curb
In order to permit the completion of
more than 100,000 units of the most
essential war-housing projects, the
War Production Board has granted
"specific authorization" for the sale of
lumber previously restricted to military uses. The projects affected,
located in 28 States and almost evenly
divided between those publicly and
privately financed, were selected after
investigation by the National Housing
Agency and WPB as being of primary
importance in the war effort.
Authorization for the purchase of
lumber for publicly financed housing
may be granted upon certification of
necessity by the local superintendent
of the Federal Public Housing Authority. In the case of privately financed construction in the designated
areas, both the contractor and an authorized agent of the Federal Housing
Administration are required to certify
to necessity of the requested purchase.
However, because the demand for
certain kinds of lumber exceeds the
present supply, authorizations for purchase cannot be immediately honored
in every case.
ft
it
it
ft
it
Home conversion given
additional encouragement
Conversion of dwellings to make
maximum use of existing housing has
received further encouragement. The
War Production Board has announced
a streamlined procedure for projects
which make available an additional
dwelling unit with an outlay of not
more than $100 worth of critical
materials per room, nor more than $800
per structure, provided they are in a
locality which is on a priorities list.
Application for such eligible private
undertakings should be made on Form
PD-110 which does not require the
submission of plans and specifications
and is neither subject to critical
scrutiny by FHA offices nor chargeable against quota allotments. The
resulting accommodations are not limited to occupancy by war workers.
A further move to expedite conversions was contained in the National
Housing Administration's delegation
of authority to creditors and lenders to
exempt remodeling and reconditioning
loans from provisions of Regulation
W. This authorizes any agent qualified as a "registrant" under the
Federal Reserves Board's Regulation
($500 limitation for total cost of work)
to designate certain of these projects
as "defense housing." The registrant
may accept from the obligor a signed
statement that a project has received a
priority rating from WPB, or that it
satisfied specific conditions as to location, preference of occupancy by war
workers, necessity for continued habitation, and shelter rent. Records of
these exemptions must be kept for
inspection but no longer require prior
concurrence by the National Housing
Agency or the Federal Reserve Board.
ft ft ft ft ft
Rent regulations
invoked in more areas
Maximum rent regulations were put
into effect in 21 additional areas on
August 1. This brings the total to 96
localities in which the authority of the
Office of Price Administration has been
invoked to stabilize rents as of selected
dates: 17 areas will operate under
March. 1942 ceilings and in the remaining four areas rents will be rolled back
to January, April, or July 1941 levels.
Fifteen States are represented in
these 21 designated localities which
range in size from Key West, Florida
with a population of 14,078 to Milwaukee, Wisconsin (987,181) and include approximately 4,000,000 residents in all.
The OP A has announced that investigations are continuing in the
remaining 272 designated defenserental areas with a view to making
Federal regulations operative where
the rental problem is most acute.
Federal
Home
Loan Bank
Review
HONOR ROLL OF WAR BOND SALES
r^^i^^v
We have " raised the sights." This
jftlBfiwyfuu month's Honor Roll includes those
|HtH]BSj4jRy member institutions which through
^—^
June 30 have sold war bonds and
stamps equal to 7}{ percent or more of their assets.
Previous lists were based on cumulative sales of at
least 5 percent.
In the September issue the sights will be raised
once more to a minimum of 10 percent. As the
record of cumulative sales grows each month it is
but natural that the standards for inclusion of
associations in the Honor Roll must be revised from
time to time in order that its distinctive character
be maintained.
The following list names 266 associations which
have met the 7K-percent goal set for this month. As
in previous issues, one asterisk designates those
institutions which have sold amounts equivalent to
10 to 15 percent, and each additional asterisk stands
for another 5 percent.
Sales leaders with a record of $500,000 or more
now number 24 as against 21 last month, and these
24 associations alone have sold almost $20,000,000
through June 30. Three institutions in this group
sold more than $200,000 of war bonds in the single
month of June and two others were within striking
distance of this mark.
The following list reflects reports of cumulative
sales through June 30. In the case of appreciation
bonds, these reports are based on maturity values.
NO. 1—BOSTON
*Branford Federal Savings and Loan Association, Branford, Conn.
Bristol Federal Savings and Loan Association, Bristol, Conn.
Sharon Co-operative Bank, Sharon, Mass.
•Telephone Workers Co-operative Bank, Providence, R. I.
* Windsor Federal Savings and Loan Association, Windsor, Vt.
NO. 2—NEW YORK
••Amsterdam Federal Savings and Loan Association, Amsterdam, N. Y.
•Bellmore Savings and Loan Association, Bellmore, N. Y.
Black Rock-Riverside Savings and Loan Association, Buffalo, N. Y.
**Broad Avenue Building and Loan Association,Palisades Park, N. J.
Bronx Federal Savings and Loan Association, Bronx, N . Y.
•Carthage Savings and Loan Association, Palisades Park, N. Y.
••Center Savings and Loan Association, Clifton, N. J.
Chemung Valley Savings and Loan Association, Elmira, N. Y.
Cranford Savings and Loan Association, Cranford, N. J.
Dime Banking and Loan Association, Rochester, N. Y.
•First Federal Savings and Loan Association, New York, N. Y.
First Federal Savings and Loan Association, Rochester, N. Y.
Fourth Federal Savings and Loan Association, New York, N. Y.
•Qenessee County Savings and Loan Association, Batavia, N. Y.
•Jackson Heights Savings and Loan Association, Jackson Heights, N. Y.
•Long Beach Federal Savings and Loan Association, Long Beach, N. Y.
Midtown Savings and Loan Association, Newark, N. J.
•New Brighton Savings and Loan Association, St. George, N. Y.
***Owego Federal Savings and Loan Association, Owego, N. Y.
August 1942
Polifly Savings and Loan Association, Hasbrouck Heights, N. J.
Queens County Federal Savings and Loan Association, Jamaica, N. Y.
•Schuyler Building and Loan Association,Kearny, N. J.
Summit Federal Savings and Loan Association, Summit, N. J.
Union City Savings and Loan Association, Union City, N. J.
Walton Savings and Loan Association, Walton, N. Y.
NO. 3—PITTSBURGH
•Alvin Progressive Federal Savings and Loan Association, Philadelphia, Pa.
Ambridge Building and Loan Association, Ambridge, Pa.
•Colonial Federal Savings and Loan Association, Philadelphia, Pa.
••Ellwood City Federal Savings and Loan Association, Ellwood City, Pa.
First Federal Savings and Loan Association, Carnegie, Pa.
•First Federal Savings and Loan Association, Homestead, Pa.
First Federal Savings and Loan Association of South Philadelphia, Philadelphia,
Pa.
•First Federal Savings and Loan Association, Wilkes-Barre, Pa.
**************jiirst Federal Savings and Loan Association, Wilmerding, Pa.
Founders-Oxford Federal Savings and Loan Association, Philadelphia, Pa.
••Franklin Federal Savings and Loan Association, Pittsburgh, Pa.
Girard Federal Savings and Loan Association, Philadelphia, Pa.
Grand Union Federal Savings and Loan Association, Philadelphia, Pa.
•Mutual Building and Loan Association, Erie, Pa.
Peoples Federal Savings and Loan Association, Wheeling, W. Va.
Reading Federal Saving and Loan Association, Reading, Pa.
NO. 4—WINSTON-SALEM
••Bohemian American Building Association, Baltimore, Md.
•••Bohemian Building Loan and Savings Association "Slavie," Baltimore, M d .
Citizens Building and Loan Association, Rocky Mount, N. C
•First Federal Savings and Loan Association, Bessemer, Ala.
•First Savings and Loan Association, Columbus, Ga.
•••First Federal Savings and Loan Association, Cordele, Ga.
First Federal Savings and Loan Association, Darlington, S. C.
First Federal Savings and Loan Association, Decatur, Ala.
•First Federal Savings and Loan Association, Eustis, Fla.
•First Federal Savings and Loan Association, Huntsville, Ala.
•First Federal Savings and Loan Association, Montgomery, Ala.
•••First Federal Savings and Loan Association, Phenix City, Ala.
••••First Federal Savings and Loan Association, Winder, Ga.
•Fort Hill Federal Savings and Loan Association, Clemson, S. C.
•••••Home Building and Loan Association, Easley, S. C.
Jefferson Federal Savings and Loan Association, Birmingham, Ala.
Lithuanian Federal Savings and Loan Association, Baltimore, Md.
•Meriwether Federal Savings and Loan Association, Manchester, Ga.
Moutlrie Federal Savings and Loan Association, Moultrie, Ga.
Mutual Building and Loan Association, Martinsville, Va.
Peoples Mutual Building and Loan Association, Mount Gilead, N. C.
Seneca Building and Loan Association, Seneca, S. C.
Tifton Federal Savings and Loan Association, Tifton, Ga.
NO. 5 - C J N C I N N A T I
Bedford Savings and Loan Company, Bedford, Ohio
•Buckeye Loan and Building Company, Cincinnati, Ohio
Chagrin Falls Savings and Loan Company, Chagrin Falls, Ohio
Citizens Federal Savings and Loan Association, Delphos, Ohio
Citizens Savings and Loan Company, Akron, Ohio
Dollar Federal Savings and Loan Association, Hamilton, Ohio
••First Federal Savings and Loan Association, Bucyrus, Ohio
•FirstFederal Savings and Loan Association, Greeneville, Tenn.
FirstFederal Savings and Loan Association, Lorain, Ohio
First Federal Savings and Loan Association, Sidney, Ohio
•First Federal Savings and Loan Association, Van Wert, Ohio
Great Northern Building and Loan Company, Barberton, Ohio
H. B. Smith Building and Loan Company, Fremont, Ohio
•Hancock Savings and Loan Company, Findlay, Ohio
•Hickman Federal Savings and Loan Association, Hickman, Ky.
Home Loan and Savings Company, Coshocton, Ohio
•Lincoln Heights Savings and Loan Company, Cleveland, Ohio
•Logan Federal Savings and Loan Association, Logan, Ohio
McArthur Savings and Loan Company, McArthur, Ohio
•Ohio Savings and Loan Association, Fostoria, Ohio
Orleans Federal Savings and Loan Association, Cleveland, Ohio
373
Tops in volume
Member associations which have sold more than $500,000 of war savings bonds
through June SO
1. Old C o l o n y C o o p e r a t i v e B a n k , P r o v i d e n c e , R . I .
1
ft, 270, 385
2. F i r s t F e d e r a l Savings a n d L o a n Association, N e w Y o r k ,
N. Y.
3 H o m e F e d e r a l Savings a n d L o a n Association, T u l s a , Okla.
4. M i n n e s o t a F e d e r a l Savings a n d L o a n Association, St. P a u l ,
Minn.
5. R a i l r o a d F e d e r a l Savings a n d L o a n Association, N e w Y o r k ,
N. Y.
6. F o u r t h F e d e r a l Savings a n d L o a n Association, N e w Y o r k ,
N . Y.
7. Worcester C o o p e r a t i v e F e d e r a l Savings a n d L o a n Association, Worcester, M a s s .
8. F i r s t F e d e r a l Savings a n d L o a n Association, Rochester,
N . Y.
9. T a l m a n F e d e r a l Savings a n d L o a n Association, Chicago,
111.
10. Pacific F i r s t F e d e r a l Savings a n d L o a n Association,
Tacoma, Wash.
11. E d i s o n Savings a n d L o a n Association, N e w Y o r k , N . Y .
12. P e r p e t u a l B u i l d i n g Association, W a s h i n g t o n , D . C .
13. F i r s t F e d e r a l Savings a n d L o a n Association, M i a m i , F l a .
14. R a i l r o a d m e n ' s F e d e r a l Savings a n d L o a n Association,
Indianapolis, I n d .
15. F i r s t F e d e r a l S a v i n g s a n d L o a n Association, Chicago, 111.
16. G e m C i t y B u i l d i n g a n d L o a n Association, D a y t o n , Ohio
17. H a r v e y F e d e r a l Savings a n d L o a n Association, H a r v e y , 111.
18. H o m e Savings a n d L o a n C o m p a n y , Y o u n g s t o w n , Ohio
19. F i r s t F e d e r a l Savings a n d L o a n Association, Y o u n g s t o w n ,
Ohio
20. F i r s t F e d e r a l Savings a n d L o a n Association, D e t r o i t , M i c h .
21. H o m e F e d e r a l Savings a n d L o a n Association, Chicago, 111.
22. L o n g B e a c h F e d e r a l Savings a n d L o a n Association, L o n g
Beach, Calif.
23. Osage F e d e r a l Savings a n d L o a n Association, P a w h u s k a ,
Okla.
24. W e s t e r n F e d e r a l Savings a n d L o a n Association, Chicago,
111.
1,260,007
1,128,228
1,080,840
1,059, 926
985,868
979,194
919,531
917, 731
917, 069
884,200
861,906
816,038
807, 595
730,243
722,650
674, 592
631, 305
600. 678
588,091
584,976
563, 875
508, 725
501, 200
* Peoples Federal Savings and Loan Association, Leetonia, Ohio
Peoples Savings and Loan Association, Cleveland, Ohio
-*Progress Savings and Loan Company, Cleveland, Ohio
••Suburban Federal Savings and Loan Association, Covington, Ky,
••Tatra Savings and Loan Company, Cleveland, Ohio
Third Equitable Building and Loan Company, Cadiz, Ohio
Third Federal Savings and Loan Association, Cleveland, Ohio
* Ukrainian Savings Company, Cleveland, Ohio
•Versailles Building and Loan Company, Versailles, Ohio
••Warsaw Savings and Loan Association, Cleveland, Ohio
NO. 6—INDIANAPOLIS
* Atkins Savings and Loan Association, Indianapolis, Ind.
Birmingham Federal Savings and Loan Association, Birmingham, Mich.
* Citizens Federal Savings and Loan Association, Port Huron, Mich.
* Crawfordsville Building Loan Fund and Savings Association, Crawfordsville,
Ind.
•Dearborn Federal Savings and Loan Association, Dearborn, Mich.
Detroit Federal Savings and Loan Association, Detroit, Mich.
East Chicago Federal Savings and Loan Association, East Chicago, Ind.
First Federal Savings and Loan Association, East Chicago, Ind.
First Federal Savings and Loan Association, Jefferson ville, Ind.
* First Federal Savings and Loan Association, Kokomo, Ind.
First Federal Savings and Loan Association, Logansport, Ind.
First Federal Savings and Loan Association, New Albany, Ind.
* First Federal Savings and Loan Association, Washington, Ind.
First State Savings and Loan Association, Gary, Ind.
Gary Federal Savings and Loan Association, Gary, Ind.
•*Griffith Federal Savings and Loan Assocation, Griffith, Ind.
Homestead Loan and Building Association, Albion, Mich.
374
•Liberty Savings and Loan Association, Whiting, Ind.
Loogootee Federal Savings and Loan Association, Loogootee, Ind.
•Marshall County Building and Loan Association, Plymouth, Ind.
•Muskegon Federal Savings and Loan Association, Muskegon, Mich.
Ottawa County Building and Loan Association, Holland, Mich.
•Peoples Federal Savings and Loan Association, East Chicago, Ind.
•Port Huron Loan and Building Association, Port Huron, Mich.
•Rural Loan and Savings Association, Hartford City, Ind.
•••Sobieski Federal Savings and Loan Association, South Bend, Ind.
Steel City Federal Savings and Loan Association, Gary, Ind.
•Twelve Points Savings and Loan Association, Terre Haute, Ind.
Warren County Federal Savings and Loan Association, Williamsport, Ind.
•Wayne County Federal Savings and Loan Association, Detroit, Mich.
NO. 7—CHICAGO
***** Acme Savings and Loan Association, Milwaukee, Wis.
Amity Federal Savings and Loan Association, Chicago, 111.
Austin Federal Savings and Loan Association, Chicago, 111.
•Avondale Building and Loan Association, Chicago, 111.
Chicago Heights Federal Savings and Loan Association, Chicago Heignts, 111.
***City Savings and Loan Association, Chicago, 111.
•Continental Savings and Loan Association, Chicago, 111.
•••Cook County Federal Savings and Loan Association, Chicago, 111.
•Copernicus Building and Loan Association, Chicago, 111.
••Cragin Savings and Loan Association, Chicago, 111.
Des Plaines State Building and Loan Association, Des Plaines, 111.
•Fairfield Savings and Loan Association, Chicago, 111.
•••First Calumet City Savings and Loan Association, Calumet City, 111.
First Federal Savings and Loan Association, Des Plaines, 111.
First Federal Savings and Loan Association, Lansing, 111.
••First Federal Savings and Loan Association, Moline, 111.
•First Savings and Loan Association of Hegewisch, Chicago, 111.
•Flora Mutual Building, Loan and Homestead Association, Flora, 111,
•Grand Crossing Savings and Building Loan Association, Chicago, 111.
•Guaranty Savings and Loan Association, Chicago, 111.
•Haller Building and Loan Association, Chicago, 111.
•••Harvey Federal Savings and Loan Association, Harvey, 111.
•Hemlock Savings and Loan Association, Chicago, 111.
•••••Investors Savings and Loan Association, Chicago, 111.
****Jugoslav Savings and Loan Association, Chicago, 111.
•Lawn Manor Building and Loan Association, Chicago, 111.
Lawn Savings and Loan Association, Chicago, 111.
••••••••Lawndale Savings and Loan Association, Chicago, 111.
•Lombard Building and Loan Association of DuPage County, Lombard, 111
••Midwest Savings and Loan Association, Chicago, 111.
•Morton Park Federal Savings and Loan Association, Cicero, 111.
Mutual Federal Savings and Loan Association, Chicago, 111.
•Naperville Building and Loan Association, Naperville, 111.
•Naprstek Savings and Loan Association, Chicago, 111.
New City Savings and Loan Association, Chicago, 111.
New London Savings and Loan Association, New London, Wis.
North Side Federal Savings and Loan Association, Chicago, 111.
North West Federal Savings and Loan Association, Chicago, 111.
•Northwestern Savings and Loan Association, Chicago, 111.
Peerless Federal Savings and Loan Association, Chicago, 111.
Prairie State Savings and Loan Association, Chicago, 111.
•Prospect Federal Savings and Loan Association, Chicago, 111.
••Pulaski Savings and Loan Association, Chicago, 111.
Radnice Savings and Loan Association, Chicago, 111.
•Richland Center Federal Savings and Loan Association, Richland Center, Wis.
••••St. Anthony Savings and Loan Association, Cicero, 111.
Second Federal Savings and Loan Association, Chicago, 111.
Security Federal Savings and Loan Association, Chicago, 111.
Talman Federal Savings and Loan Association, Chicago, 111.
Tocin Savings and Loan Association, Berwyn, 111.
•••Universal Savings and Loan Association, Chicago, 111.
•Union Federal Savings and Loan Association, Kewanee, 111.
•Uptown Federal Savings and Loan Association, Chicago, 111.
•Valentine Federal Savings and Loan Association, Cicero, 111.
••West Highland Savings and Loan Association, Chicago, 111.
••West Pullman Savings and Loan Association, Chicago, 111.
•Western Federal Savings and Loan Association, Chicago, 111.
NO. 8—DES MOINES
•American Home Building and Loan Association, St. Louis, Mo.
•Burlington Federal Savings and Loan Association, Burlington, Iowa
(Continued on p. 881)
Federal Home Loan Bank Review
«
«
«
FROM THE MONTH'S NEWS
IMPOSSIBLE: " I t is impossible for any individual or for a n y group of persons to
benefit from inflation without suffering
its penalties. This is equally t r u e of t h e
business man, t h e professional man, t h e
farmer, t h e worker, a n d t h e investor."
Jesse H. Jones, July 8, 1942.
P L A N : "We m u s t plan on a period of
years during which our one big business
will be war, a n d most other businesses
will be directly or indirectly subsidiaries
of t h a t big one."
The Cleveland Trust Company,
Business
Bulletin,
July 15, 1942.
INFLATION: "Inflation is theoretically
supposed to aid t h e debtor class and ruin
the creditor class; b u t t h e debtor class
does not benefit because in t h e end t h e
government takes away all t h e profits
t h a t the debtor class can o b t a i n . "
Ben H. Wooten, The Fifth
District Quarterly, July 1942.
STRATEGY: " T h e war can be lost unless
you a n d I . . . do t h e job t h a t is assigned to us, a n d do it right. The President's program provides the strategy for
the home front. It shows us our battle
stations. I t gives us our marching orders.
The rest is u p to us.
" W e m u s t produce to t h e limit of our
capacity a n d strength. We m u s t produce
more t h a n we have ever produced before.
We must learn to live on less."
»
»
»
Poverty not inevitable
" W e are not fighting a purely defensive war. We are fighting
for something. For a generation we have been living on the edge
of a new world; we are only now beginning to realize it.
" F o r the first time in the history of the human race there can be
enough of everything to go around. Poverty is not inevitable any
more. The sum total of the world's greatest possible output of
goods, divided by the sum total of the world's inhabitants, no longer
means a little less than enough for everybody. I t means more than
enough. The possibilities in that simple statement are beyond
calculation—and what we are fighting for is the right to turn some
of those possibilities into realities."
Donald M. Nelson, Chairman, War Production Board,
June 9, 1942.
War damage
" I n England, Wales, and Scotland there are 10,000,000 houses.
One in 15 has been damaged by bombs or anti-aircraft debris, and
one in 100 has been made uninhabitable. One-fifth of London is
gone and migrations have decreased the population by 27 percent.
Before the war there were 3,000 London firemen; now 30,000 plus
several hundred thousand of the auxiliary fire force. For each
thousand incendiary bombs dropped, 125 fires resulted."
Davis M. DeBard, Stone & Webster Service Corporation, The American City, June 1942.
ESTIMATED NUMBER OF NONFARM FORECLOSURES
THOUSANDS
UNITED STATES'- FIRST SIX MONtHS EACH YEAR
Leon Henderson, Administrator, Office of Price Administration, Domestic Commerce, June 25, 1942.
WAR HOUSING: " T h e w a r - h o u s i n g
problem, in all its complexity, boils down
to t h i s : Someone m u s t t a k e t h e responsibility for war housing as a whole—for
house, utilities, school a n d community
facilities, for rent control a n d rationing
of existing living space."
Supplement to Architectural
Forum. June 1942,
OPPORTUNITY: " T h e r e is something else
t h a t m u s t accompany liberty, freedom,
and equality of opportunity, a n d this is
o p p o r t u n i t y to work. A m a n out of
employment with an e m p t y stomach
c a n ' t eat theories or enjoy liberty. If
you are fighting to return t o t h e conditions t h a t existed during t h e p a s t deca d e — t h e dole, t h e breadline, a n d millions
of unemployed—you w o n ' t win t h e w a r . "
Eric Johnston, President,
IT. S. Chamber of Commerce,
July 4, 1942.
August 1942
1934
1935
i936
1937
on
J 938
1939
-
1940
1941
[942
DIVISION OF RESEARCH A W STATISTICS
FEDERAL HOME U>AH 6A»K A0*HK>STRAf«)«
This chart portrays trends in nonfarm real-estate foreclosures for the first 6 months of each year since
1934. Ever since the peak of 1935 the number of foreclosures has been declining. Percentagewise, the
drop from 1941 to 1942 has been one of the sharpest experienced during the period under study, reflecting
generally improved real-estate conditions.
375
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-1939=
BY Y E A R S
INDEX
100
BY MONTHS
280
- - I "
I
r
|
|
l
1
ADJUSTED FOR SEASONAL VARIATION
280
1
260
-PRIVATE
240
1
1
!
I
1
I
CONSTRUCTION^
1 a 2 FAMILY DWELLING UNITS
^
A_
220
200
1801-
PRIVATE CONSTRUCTION
1 a 2 FAMILY DWELLING UNITS
1601
1\
I40[
S.
^
!.
(US
'
DEPT OF LABOR
1
|
ioo[
jf
\S\jrSVGS.
jC
a LOAN LENDING
V\i
80 |
\ \
""'" f\
/
f
40 [
I
/
Tl
\,^
60 [
•Oc
XT
\1|V
V.
V fFFDFRAI HOWr 1 HAM RAWK AHMIM \
/[/
A/
RECORDS)
|
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I20h
A .•
1
^X
K/V
^ H
^ ,....
W/*££$...
«3^ua «
.E/V£ ING
l-l/l4fV
\
—\
/
"1
••*"
\
NONfMKM
FORECLOSURES-**
\MNFARM
^s.
(FEDERAL HOME LOAN BANK ADMIN.)
^ u
/-UtXHULUSUKLS
1 -
1
1
1
^—
20
I
i
i
1 1
1
1 1 1 1 1 1
1
'
1
I 1
'
i
i
i
i
i
i
i
i
i
i .
1
BUILDING MATERIAL PRICES^
...
.......... . . . . . . . . . . . . . i '
- ^
i
i
i
i
**.~L.—.~.
.
^
RENTS-^
i
_1_L_
i
i
i
i
,
_L_L_
'
I
i
1 1
1
1 ~^\\r
I
ADJUSTED FOR SEASONAL VARIATION
-•-"T" 1 ^-
-INC USTIRIAL PRODUCTION*
1 ..•
- **•» _H,||'**
1930
'31
'32
'33
'34
'35
'36
STANDARD SIX-ROOM HOUSE
376
'37
'38
'39
'40
'41
-^U
^n
INCCWE /WA* r/vrs
^
N
1 1
~~T^
nin
1940
WHOLESALE COMMODITY PRICES
1
1
' 1
i
1941
i
i
i
'
i
i
i
i
i
-J/Njj
1942
MANUFACTURING PAYROLLS
Federal Home Loan Bank Review
«
«
ONTHLY
SURVEY
»
»
»
MIDWAY IN 1942
/. Reflecting ever-tightening control of building activity, total residential construction during the first half of this year (173,300
units)
was almost 60,000
units below the same 1941 period/ down 25 percent.
A. The drop in privately financed construction was even more pronounced, with new single-family homes the hardest hit. Sixmonth totals for private building: 119,800 units this year,- 193,000
units a year ago.
B. Public projects for housing war workers, on the other hand, increased from 38,700 units last year to 53,500 units.
II. Increases in building costs during the first 6 months of 1942 were somewhat smaller than in the comparable period of 1941.
However,
the present level of costs is substantially higher than a year ago.
A. Material, labor, and total costs involved in the construction of the standard 6-room house have each risen about 3 percent
in the past 6-month period.
Total costs are now about 10 percent higher than in June 1941.
B. Wholesale prices of building materials have shown little change recently, but are currently 9 percent above 1941 data.
III. The past 6 months have witnessed the turning point in the upward trend in mortgage-financing activity which has accompanied the
general recovery in home construction and real estate during recent years.
A. Recordings of all nonfarm mortgages of $20,000
or less, while still in excess of $2,000,000,000,
were almost 10 percent
under last year's peak volume.
B. Lending activity of all savings and 'loan associations fell 19 percent from 1941 totals. Construction lending was down 43
percent.
IV. General business conditions thus far in 1942 have been marked by the progressive conversion to a war economy, rising national income
and employment, and increased efforts to curb inflation through price controls and voluntary savings. Industrial production in June
was 11 percent higher than a year ago.
Output of durable goods was up 25 percent, while that of nondurable items showed no
change.
BUSINESS CONDITIONS
With the job of converting industry to a war basis
by and large completed, new all-time highs have
been reached in employment and pay rolls. Civil
nonagricultural employment in June was estimated
at 41,415,000, an increase of about 5 percent over
last year. The index of manufacturing pay rolls
gained nearly four times as much as the index of
factory employment, reflecting longer working hours,
overtime pay, and wage-rate increases.
The supply of raw materials has now become the
principal factor limiting our production effort. The
Federal Reserve Board's seasonally adjusted index
of industrial output showed another small gain during June, but more significant is the fact that the
manufacture of durable goods, which can be more or
less identified with war production, was the only
category to show an expansion, while production of
non-durable goods remained the same as last month
and was a little lower than a year ago.
The heavy burden imposed by the war effort on
the Nation's transportation facilities is reflected in
monthly indexes now available for the first time.
According to these indexes, prepared by the Department of Commerce, the volume of all forms of transportation (land, sea, and air) in May of this year was
almost twice as great as in August 1939, the month
August 1942
before the outbreak of the War. For the first 5
months of this year, the volume has been rising at an
average rate of 5 percent per month. At the present
time it is 50 percent above the 1929 monthly average
and nearly 40 percent above the 1941 average.
These figures include commodity traffic as well as
passenger transportation which has to bear the brunt
of new demands resulting from troop movements and
the curtailment of private use of passenger automobiles.
Controlled prices showed little change in June,
reductions in official schedules for some commodities
being offset by increases permitted for others.
However, retail prices of uncontrolled foods advanced
sharply from May to June.
[1935-1939=100]
Type of index
Home construction—private i_
Foreclosures (nonfarm) i
Rental index (NICB)
Building material prices
Savings and loan lending i
Industrial production i
1
Manufacturing employment
.
Manufacturing payl rolls l
Income payments
June
1942
May
1942
65.5
70.5
27.2
28.0
111.5
111.7
122.9
122.9
122.9
125.7
P 177.0 ' 174.0
P 144.7 ' 141.4
p 231.1 '221.9
P165.4
162.7
Percent] June
change 1941
-7.1
+2.9
-0.2
0.0
-2.2
+1.7
+2.3
+4.1
+1.7
211.5
36.7
108.1
112.8
174.7
159.0
133.7
180.8
137.0
Percent
change
-69.0
-23.7
+3.1
+9.0
-29.7
+11.3
+8.2
+27.8
+20.7
r
p Preliminary.
Revised.
i Adjusted for normal seasonal variation.
377
BUILDING ACTIVITY-June
volume
over 60 percent below last year
Home-building activity financed by private funds
steadied somewhat in June after almost a year of
substantial reductions. The index of 1- and 2-family
construction, which has been adjusted for normal
seasonal variations, displayed a 7-percent decrease
at mid-year—compared with the 46-percent drop
noted in May. The index now stands at about onethird of the peak level reached in July 1941.
In terms of estimated number of dwelling units
placed under construction, the total of 1- and 2family units declined 11 percent during June, but
since a drop of 4 percent from May is usually experienced, this contraction is not quite as unfavorable
as would appear. The volume of privately financed
multi-family dwellings and of public housing projects has shown erratic movements in recent years,
and these saw-tooth patterns were projected into
June. In contrast to the sharp drop shown by the
private apartment classification in May, a substantial rise was noted in the June figure. In the
case of Government-financed structures, the June
volume was only one-third of the all-time peak of
activity, 16,600 units, reported for May.
The effect of war-time restrictions on residential
building, both private and public, is reflected in
the decline of new family units from 47,994 in June
1941 to 18,302 this year. [TABLES 1 and 2.1
Construction costs for the standard house
[Average month of 1935-1939=100]
Element of
cost
Material
Labor _
NEW RESIDENTIAL CONSTRUCTION IN ALL URBAN AREAS
PERMITS ISSUED FOR PUBLICLY AND PRIVATELY FINANCED DWELLING UNITS
THOUSANDS OF
DWE LLING U JITS
Total
35
/
PRIVATE
and 2 FAMILY
30
p
^7
25
June
1942
May
1942
Percent
change
June
1941
Percent
change
P121.
P127.
3
8
121. 0
126. 4
+ 0. 2
+ 1.1
109. 2
118. 6
+ 11.1
+ 7. 8
P123.
5
122. 8
+ 0. 6
112. 4
+ 9. 9
Preliminary.
MORTGAGE RECORDINGS-Half-year
total 10 percent below last year
20
15
f\
10
ALL PUBLIC-=>
5
house rose 0.6 percent to a new high of 123.5 (19351939 = 100). The labor used in the construction of
this house showed the greater increase for the month
and now stands 28 percent above the 1935-1939
average. Material prices advanced fractionally and
the index for June was 21 percent higher than in the
base period.
Changes in the total cost figures for individual
communities during the period from April to Julywere mixed. Of the 18 cities reporting costs for
July, increases of from $100 to $500 were registered
in nine cities while changes of less than $55 were
reported by the remaining cities. Further analysis
reveals that in all but one of these cities reporting
increases of more than $100, the rise was due primarily to an advance in labor costs; material costs
showed less drastic changes.
The wholesale prices of building material remained
unchanged from last month. However, the items
making up this total varied. Lumber, brick and
tile increased slightly while paint and paint materials
showed a downward tendency. The remaining
items which make up this index showed no change
from May to June. [TABLES 3,4, and 5.]
_^ 1
.
* 1
°t EC.
/\.i
ii
"7 :
.*
5"
'ATE MULTI-FAMILY , | , .
MAR.
JUN.
SEP
DEC
MAR
1940
BUILDING
JUN.
SEP
1941
1
DEC
!
MAR
JUN.
1942
SEP
D
:c
COSTS—Risins
tendencies still evident
Building costs for both material and labor continued to rise through the month of June. The
Federal Home Loan Bank Administration's index
of costs for constructing a standard 6-room frame
378
During the month of June the total volume of
mortgage financing ($342,250,000) was 2 percent
Jower than in May and only four-fifths as large as
in June 1941. The greatest monthly reduction, 6
percent, was experienced by life insurance companies,
followed by a 4-percent decrease for commercial
banks. Mutual savings banks and miscellaneous
lenders reported the only rises—up 1 percent during
the month.
In the first half of 1942, over $2,000,000,000 of
mortgages of $20,000 or less each were recorded
throughout the United States. This total falls 10
percent short of the post-depression high reached in
Fee/era/ Home Loan Bank Review
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]
PerPerPercent
Cumulacent
cent of
of
tive rechange J u n e
cordings (6 t o t a l
from
1942
M a y a m o u n t months) recordings
1942
T y p e of lender
Savings a n d loan associations
Insurance companies
Banks, t r u s t companies__
M u t u a l savings b a n k s
Individuals
Othei s
417
268
171
347
982
293
29. 9
9. 4
22. 9
4. 2
18.0
15. 6
100. 0 2, 005, 478
100.0
30.8
8.7
21. 8
4. 7
18. 3
15. 7
-2. 5
-6. 3
-3. 8
+ 0. 9
-1.7
+ 1.2
$599,
188,
460,
83,
361,
312,
year, as is evident from the chart on page 376. Although continuing to decline through June, the
reduction of 8 percent in the index of lending activity
during the past 3-month period represented a leveling-off from the 21-percent curtailment in the preceding quarter, after allowance for normal seasonal
variations.
The dearth of construction loans continued as
the primary cause for decreases in the total volume
of lending activity. In June only $15,900,000 was
loaned by savings and loan associations for this
purpose, or slightly more than one-third the $44,200,TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
Total
_.
-2. 3
UNITED S T A T E S - B Y TYPE OF ASSOCIATION
BY
OF DOLLARS
MONTHS
-^_
the comparable period of last year, but was still 6
percent above the volume of financing reported for
the January-June period of 1940.
Banks and trust companies suffered the greatest
percentage loss, 17 percent, in recording activity
from the first 6 months of 1941 to the corresponding
period of this year, followed by savings and loan
associations which registered a 15-percent reduction.
For these two classes—the leaders in volume—the
losses so far in 1942 roughly compensated for rises
experienced last year, leaving their current totals
approximately on a par with those for the same
1940 period.
w
TOTAL - ^
(A LL ASSOCIATIONS)
\~/
ERALS
4L
w jf\
\ffP
y*^'
" v -
^ - STATE CHARTERED***^
. MEMBERS
|
'^—-**
1
ii
i.
^NONMEMBERS
M I I I I M
kr—.
..•
iTk7
CUMULATIVE AS OF JUNE 30 EACH YEAR
[TABLES 8 and 9.]]
MORTGAGE LENDING—Further
decl
eclinc in June
Receding to still lower levels, the seasonally
adjusted index of lending activity by savings and
loan associations in June stood nearly one-third
under the level of a year ago. For 10 months now
the trend in new loans has been downward, with the
greatest loss noted during the first quarter of this
New mortgage loans distributed by purpose
[Amounts are shown in thousands of dollars]
June
1942
Purpose
Construction
H o m e purchase
Refinancing _
Reconditioning
Other purposes
Total
Mav
1942
Percent
change
June
1941
$15, 930 $17, 610
- 9 . 5 $44, 207
52, 112 53, 095
- 1 . 9 55, 993
15, 184 13, 607 + 11. 6 17, 891
5,633
3,566
3,866
-7.8
7,303
6,831
+ 6 . 9 9,916
94, 095 95, 009
Au3ust 1942
Percent
change
-64. 0
-6.9
-15. 1
-36.7
-26.4
- 1 . 0 133, 640 - 2 9 . 6
1940
1941
STATE-CHARTERED
1942
MEMBERS
1940
1941
NONMEMBERS
1942
000 advanced for construction loans during the same
month of 1941. In the first half of this year loans
for new home building amounted to $119,400,000,
a decline of 43 percent from the volume registered
during the same period in 1941.
In contrast to these drastic reductions in construction-loan business, home-purchase loans have remained relatively steady. In the first 6 months of
this year over $266,200,000 was advanced by savings
and loan associations for buying existing homes—3
percent in excess of the comparable figure for last
year. [TABLES 6 and 7.]
379
FORECLOSURES—Widespread
improvement over last year
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
Contrary to the normal seasonal decline of 2 percent in June, foreclosure cases slightly exceeded those
for the month of May. There were 3,850 foreclosures
registered in June compared with 3,813 cases during
the preceding month. The seasonally adjusted index
was 28.0 as against 27.2 in May (1935-1939 = 100).
Approximately half of the States showed increases
in foreclosure cases from May to June. Of the 12
Federal Home Loan Bank Districts, nine participated
in this upward movement.
The total number of cases for the first 6 months of
1942 represents a decline of nearly 28 percent from
the same period a year ago. This improvement
over 1941 in the foreclosure situation was widespread
geographically. All Federal Home Loan Bank
Districts joined in the downward movement, decreases ranging from 49 percent in the Indianapolis
area to 18 percent in the Boston region. [TABLE 10.]
I N S U R E D A S S O C I A T I O N S — 8 years
of insurance protection
As the Federal Home Loan Bank System was
rounding out its tenth year of operation as a secondary credit reservoir for thrift and home-financing
institutions, the Federal Savings and Loan Insurance
Corporation completed in June the eighth year of its
existence. This Corporation has been charged since
mid-year 1934 with the responsibility of protecting
the savings invested in insured savings and loan
associations to a maximum of $5,000.
On June 30 this insurance protection encompassed
2,374 local, privately operated savings and loan
associations with resources totaling over $3,460,000,000. The number of investors in these institutions
exceeded 3,200,000. Insured associations now have
some $215,000,000 in reserves and undivided profits.
Since the end of January of this year, the number
of savings and loan associations operating under
Federal charter has increased from 1,461 to 1,464.
The combined assets of these institutions, however,
have advanced from $2,131,000,000 to $2,206,000,000
in the intervening period. This growth, though at a
lower rate than in previous years, is notable because
it occurred in a period in which the effects of the War
on home-financing institutions had become more
pronounced. [TABLE 15.]
Directory of Member, Federal, and
Insured Institutions
Added during June-July
I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN
THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN JUNE 16, AND JULY 15, 1942
D I S T R I C T NO. 2
N E W YORK:
Whitestone:
The Whitestone Savings and Loan Association, 12-45 150th Street.
D I S T R I C T NO. 3
PENNSYLVANIA:
Pittsburgh:
North Side Savings and Loan Association, 708 East Street.
Pioneer Savings and Loan Association of Bloomfield, 4716 Liberty
Avenue.
Red Hill:
Red Hill Savings and Loan Association, 237 Main Street.
D I S T R I C T NO. 8
MINNESOTA:
Brainerd:
First Federal Savings and Loan Association of Brainerd, 209 South Sixth
Street.
DISTRICT NO. 11
WASHINGTON:
Centralia:
West Coast Savings and Loan Association, 119 West Main Street.
TERMINATIONS OF MEMBERSHIP IN THE FEDERAL HOME
LOAN BANK SYSTEM BETWEEN JUNE 16, AND JULY 15,
1942
CALIFORNIA:
Los Angeles:
Occidental Life Insurance Company, 756 South Spring Street.
KANSAS:
Progress in number and assets of Federals
[Amounts are shown in thousands of dollars]
Colby:
The Home Savings Building and Loan Association.
KENTUCKY:
Newport:
Ideal Savings, Loan and Building Association of Newport, 9 East Fourth
Street (liquidation).
MISSOURI:
Number
Approximate
assets
Class of association
Jefferson City:
Hub City Building and Loan Association, 305 Monroe Street.
NORTH CAROLINA:
Whitakers:
Whitakers Building and Loan Association (liquidation).
OHIO:
June 30, May 31, June 30,
1942
1942
1942
May 31,
1942
Wapakoneta:
The Wapakoneta Building and Savings Company, 22 East Auglaize Street
(liquidation).
OREGON:
New_
Converted
Total
380
__
640
824
640 $702, 879 $688, 020
824 1,503,042 1,482,848
1, 464
1,464 2,205,921 2,170,868
Corvallis:
Liberty Savings and Loan Association (liquidation).
PENNSYLVANIA:
Altoona:
First Federal Savings and Loan Association of Altoona, 2501 Fourth
Street (liquidation).
Pittsburgh:
New American Building and Loan Association, 4716 Liberty Avenue
(liquidation).
Federal Home Loan Bank Review
SOUTH DAKOTA:
Water town:
Midland National Life Insurance Company.
W E S T VIRGINIA:
Wheeling:
Wheeling Savings and Loan Association, 25 Eleventh Street (liquidation).
II. I N S T I T U T I O N S I N S U R E D BY T H E F E D E R A L
SAVINGS A N D LOAN I N S U R A N C E C O R P O R A T I O N
B E T W E E N J U N E 16, A N D J U L Y 15, 1942
D I S T R I C T NO. 2
N E W JERSEY:
Nutley:
Nutley Savings and Loan Association, 244 Chestnut Street.
N E W YORK:
Utica:
The Homstead Savings and Loan Association of Utica, 516 Seneca Street.
Whitestone:
The Whitestone Savings and Loan Association, 12-45 150th Street.
D I S T R I C T NO. 3
PENNSYLVANIA:
Pittsburgh:
Home Mutual Savings and Loan Association, 12 North Diamond Street.
North Side Savings and Loan Association, 708 East Street.
Pioneer Savings and Loan Association of Bloomfield, 4716 Liberty
Avenue.
Sewickley:
Sewickley Building and Loan Association, 508 Broad Street.
DISTRICT NO. 4
ALABAMA:
Birmingham:
City Federal Savings and Loan Association, 314 North Twenty-first
Street.
NORTH CAROLINA:
Lexington:
The Mutual Building and Loan Association, North Main Street.
DISTRICT NO. 6
INDIANA:
Scottsburg:
Scottsburg Building and Loan Association, 64 South Main Street.
D I S T R I C T NO. 7
ILLINOIS:
Peoria:
Central City Loan and Homestead Association, 510 Main Street.
WISCONSIN:
Racine:
Racine Junction Building and Loan Association, 1410 Owen Avenue.
D I S T R I C T NO. 8
MINNESOTA:
Brainerd:
First Federal Savings and Loan Association of Brainerd, 209 South Sixth
Street.
MISSOURI:
Hannibal:
Mark Twain Savings and Loan Association, 115 Broadway.
D I S T R I C T NO. 11
MONTANA:
Great Falls:
Great Falls Building and Loan Association, 17 Fifth Street, North.
WASHINGTON:
Centralia:
West Coast Savings and Loan Association, 118 West Main Street.
INSURANCE CERTIFICATE
AND J U L Y 15, 1942
CANCELLED
BETWEEN
JUNE
INDIANA:
Hammond:
Calumet Building and Loan Association, 423 Fayette Stret.
Honor Roll
(Continued from p. 374)
NO. 8—DES MOINES—Continued
First Federal Savings and Loan Association, Fargo, No. Dak.
* First Federal Savings and Loan Association, Rock Rapids, Iowa
**First Federal Savings and Loan Association, Sioux City, Iowa
•Independence Savings and Loan Association, Independence, Mo.
* Perry Federal Savings and Loan Association, Perry, Iowa.
Sentinel Federal Savings and Loan Association, Kansas City, Mo.
NO. 9—LITTLE ROCK
Amory Federal Savings and Loan Association, Amory, Miss.
Argenta Building and Loan Association, North Little Rock, Ark.
*Batesville Federal Savings and Loan Association, Batesville, Ark.
August 1942
16,
**Bell County Federal Savings and Loan Association, Belton, Tex.
Colorado Federal Savings and Loan Association, Colorado, Tex.
Corsicana Federal Savings and Loan Association, Corsicana, Tex.
*Deming Federal Savings and Loan Association, Deming, N. M.
******Electra Federal Savings and Loan Association, Electra, Tex.
**E1 Paso Federal Savings and Loan Association, El Paso, Tex.
First Federal Savings and Loan Association, Belzoni, Miss.
*First Federal Savings and Loan Association, Big Spring, Tex.
First Federal Savings and Loan Association, Dallas, Tex.
**First Federal Savings and Loan Association, Lubbock, Tex.
First Federal Savings and Loan Association, Waco, Tex.
**Home Building and Loan Association, Plainview, Tex.
*****Marianna Federal Savings and Loan Association, Marianna, Ark.
*Morrilton Federal Savings and Loan Association, Morrilton, Ark.
* Mutual Building and Loan Association, Las Cruces, N. Mex.
Mutual Deposit and Loan Company, Austin, Tex.
***Nashville Federal Savings and Loan Association, Nashville, Ark.
*Piggott Federal Savings and Loan Association, Piggott, Ark.
*Pocahontas Federal Savings and Loan Association, Pocahontas, Ark.
****Ponchatoula Homestead Association, Ponchatoula, La.
*****Quanah Federal Savings and Loan Association, Quanah, Tex.
Riceland Federal Savings and Loan Association, Stuttgart, Ark.
NO. 10—TOPEKA
*American Building and Loan Association, Oklahoma City, Okla.
Century Building and Loan Association, Trinidad, Colo.
Citizens Federal Savings and Loan Association of Wichita, Kan.
********First Federal Savings and Loan Association, Lamar, Colo.
**First Federal Savings and Loan Association, Shawnee, Okla.
**First Federal Savings and Loan Association of Sumner County, Wellington^
Kan.
*Garnett Savings and Loan Association, Garnett, Kan.
*Home Federal Savings and Loan Association, Ada, Okla.
*Home Federal Savings and Loan Association, Grand Island, Neb.
*Home Federal Savings and Loan Association, Tulsa, Okla.
****Horton Building Loan and Savings Association, Horton, Kan.
Lyons Building and Loan Association, Lyons, Kan.
Monte Vista Building Association, Monte Vista, Colo.
****************QSage ;p e( j era i Savings and Loan Association, Pawhuska, Okla**Peoples Federal Savings and Loan Association, Tulsa, Okla.
*******Schuyler Federal Savings and Loan Association, Schuyler, Neb.
Woodward Building and Loan Association, Woodward, Okla.
NO. 1 1 - P O R T L A N D
* Auburn Federal Savings and Loan Association, Auburn, Wash.
Commercial Savings and Loan Association, Kelso, Wash.
*Deer Lodge Federal Savings and Loan Asscciation, Deer Lodge, Mont.
*Ellensburg Federal Savings and Loan Association, Ellensburg, Wash.
* First Federal Savings and Loan Association, Chehalis, Wash.
*First Federal Savings and Loan Association, Everett, Wash.
First Federal Savings and Loan Association, Idaho Falls, Idaho.
* First Federal Savings and Loan Association, Klamath Falls, Ore.
First Federal Savings and Loan Association, Lewiston, Idaho.
First Federal Savings and Loan Association, McMinnville, Ore.
***First Federal Savings and Loan Association, Mt. Vernon, Wash.
First Federal Savings and Loan Association, Port Angeles, Wash.
First Federal Savings and Loan Association, Sheridan, Wyo.
*First Federal Savings and Loan Association, The Dalles, Wash.
•Liberty Savings and Loan Association, Yakima, Wash.
*Mason County Savings and Loan Association, Shelton, Wash.
Olympia Federal Savings and Loan Association, Olympia, Wash.
*Polk County Federal Savings and Loan Association, Dallas, Ore.
Rawlins Federal Savings and Loan Association, Rawlins, Wvo.
*Thurston County Federal Savings and Loan Association, Olympia, Wash.
Wenatchee Federal Savings and Loan Association, Wenatchee, Wash.
*West Side Federal Savings and Loan Association, Seattle, Wash.
* Yakima Federal Savings and Loan Association, Yakima, Wash.
NO. 12-LOS ANGELES
Central Federal Savings and Loan Association, San Diego, Calif.
Century Federal Savings and Loan Association, Santa Monica, Calif.
Fresno Guarantee Building-Loan Association, Fresno, Calif.
Greater Arcadia Building-Loan Association, Arcadia, Calif.
North Hollywood Federal Savings and Loan Association, North Hollywood,
Calif.
Wilshire Federal Savings and Loan Association, Los Angeles, Calif.
381
Table 1.—BUILDING ACTIVITY—Estimated number and valuation of new family dwelling units
provided in all urban areas in June 1 9 4 2 , by Federal H o m e Loan Bank District and by State
[Source: IT. S. Department of Labor]
f Amounts are shown in thousands of dollars]
All residential dwellings
Federal H o m e L o a n B a n k D i s t r i c t
and State
N u m b e r of family
dwelling u n i t s
J u n e 1942
All p r i v a t e 1- a n d 2-family dwellin gs
N u m b e r of family
dwelling u n i t s "
Permit \ aluation
J u n e 1941
J u n e 1942
J u n e 1941
J u n e 1942
Permit \ aluation
J u n e 1941
J u n e 1942
J u n e 1941
18, 302
47,994
$59, 560
$177,551
10,032
32, 760
$33,132
$130,370
767
4,292
2,875
17,179
691
1,876
2,676
8,615
430
83
208
37
2
949
116
2,245
62
896
24
1,770
223
725
11
144
2
4,026
362
9,203
274
3,198
116
422
19
204
7
37
2
588
113
941
62
148
24
1,755
43
721
11
144
2
2,912
355
4,317
274
641
116
3,384
5,811
11, 945
23,583
1,380
3,322
4,748
15,485
995
2,389
1,413
4,398
3,437
8,508
6,101
17,482
841
539
1. 325
1,997
2,943
1,805
5,971
9,514
N o . 3—Pittsburgh
1,000
2,967
3,583
12,408
249
1,787
936
8,117
Delaware..
Pennsylvania
W e s t Virginia
151
477
372
21
2,679
267
626
1,825
1,132
94
11,360
954
1
226
22
17
1,513
257
1
864
71
84
7,107
926
3,504
7,135
10, 752
22, 658
1,081
4,090
2,536
13,426
209
948
114
95
681
102
73
1,282
477
987
962
715
1,552
1,103
269
1,070
321
2,659
203
196
1,877
261
177
5,058
977
3,637
3,391
1,516
5,553
2,982
611
3,991
158
73
110
95
326
102
69
148
455
324
811
579
542
491
246
642
171
222
191
196
875
261
174
446
932
1,812
3,040
1 198
1,875
1,310
598
2,661
953
3,620
3,650
14, 598
887
2,741
3,484
12,053
60
805
88
302
2,559
759
176
3,272
202
857
11,758
1,983
48
751
88
298
1,995
448
154
3,128
202
852
10, 019
1 182
1,547
3,626
6,457
16, 253
1,547
3,611
6,457
16,218
466
1,081
863
2,763
1,738
4,719
3,399
12,854
466
1,081
860
2,751
1,738
4,719
3,396
12,822
U N I T E D STATES
N o . 1—Boston
_
...
Connecticut
M a i n e . _._
- - _
Massachusetts.
New Hampshire
Rhode Island
V e r m o n t _. . . .
N o . 2—New Y o r k . . .
N e w Jersey
New York.
_ _ _
_ _
...
_
...
„
...
..
...
.
__ . . .
. . . _ . . .
...
._
N o . 4— W i n s t o n - S a l e m . . .
Alabama
. . . .
D i s t r i c t of C o l u m b i a
Florida.. .
_
Georgia..
. . . .
Maryland.
.
North Carolina.. . _
S o u t h Carolina
Virginia
. . . .
_
N o . 5—Cincinnati
Kentucky
Ohio
Tennessee
.
.
.
_
.
.
. . .
.__ __
_.
..
.
. _
N o . 6—Indianapolis
Indiana
Michigan
.
._
. . .
. . . .
.
. _ .
_ .
.
_ _
N o . 7—Chicago
.
....
_ . _ _ . _ _ . _ . _
_ _ . _ . . . _
...
555
2,620
2,147
12, 784
526
2,318
2,075
11,761
392
163
1,815
805
1,530
617
9,368
3,416
377
149
1,551
767
1,505
570
8,443
3,318
. ...
505
1,993
1,655
8,010
446
1,947
1,495
.
180
143
173
3
6
578
742
530
56
87
587
494
568
2
4
2,291
3,294
1,923
226
276
180
143
114
3
6
574
723
511
56
83
1,054
3,555
2,392
9,106
804
2,968
1,525
7,673
84
321
111
16
522
225
373
507
109
2,341
185
1,047
84
25
1,051
574
984
829
279
6,440
34
121
111
16
522
215
369
388
99
1,897
43
322
84
25
1,051
546
978
542
270
5,337
"No. 10—Topeka
631
1,472
1,762
4,352
603
Colorado
Kansas
.
. . . . . ... . ...
Nebraska...
Oklahoma
__
N o . 11—Portland
Idaho _ . - - . Montana
... .
Oregon
_ _ _ _ _ _ _ _ _
Utah
.
Washington . .
Wyoming
138
98
33
362
460
357
221
434
1,300
304
357
209
430
1,588
130
92
390
269
651
56
1,344
790
843
1,375
5~4lT
377
299
1,274
883
2,406
172
317209"
319
30, 611
279
130
82
33
358
1,540
340
257
105
1,060
4,048
9
13
766
307
2,952
1
8,294
21
8,186
87
524"
8
5
115
108
286
2
17516"
108
88
375
263
642
40
I729T
5728T
8
1,249
37
85
5,154
45
1,703
325
223
105
1,050
1,498
9
13
342
295
838
1
3,999
13
3,908
78
3,940
959
790
822
1,369
5,327
341
296
1,267
869
2,392
162
19,852
270
19,303
279
Illinois
Wisconsin
... .
N o . 8—Des M o i n e s
Iowa
Minnesota .
Missouri
North Dakota
South Dakota
^No. 9—Little R o c k
Arkansas
Louisiana . . .
Mississippi
New Mexico. . .
Texas . .
_ .
. .
_
_
_
.
... . . . .
...
_. „ ._
_.
...
. . . . . ._
. . .
_ _
_ . _
.
.____-_--...
N o . 12—Los Angeles _..
. . . . .
Arizona..
_ _ ___ . . .
California
.
. . _
Nevada
382
_ . __
8
5
287
112
1,126
2
2786-T
. ...
12
2,809
41
973T5"
117
9,153
45
587
494
408
2.
4
7,903
2,282
3,245
1,883
226
267
Federal Home Loan Bank Review
Tabic 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas of the United States
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
Permit valuation
N u m b e r of family dwelling u n i t s
M o n t h l y totals
T y p e of construction
Private construction... . . .
_ _ _ _ _ . _ _ .
1-f a m i l y dwellings
..
__ __
2-family dwellings L _.
.____
3 - a n d more-family dwellings 2._ _
P u b l i c construction
_
T o t a l u r b a n construction
_ _.
_______
_____
M o n t h l y totals
J a n . - J u n e totals
June
1942
May
1942
June
1941
12,856
12, 667
8,952
1,080
2,824
10, 384
916
1,367
5,446
16, 564
10, 692
53, 459
18, 302
29, 231
47, 994
173, 302
June
1942
J a n . - J u n e totals
May
1942
June
1941
1942
$42, 320
$41,798
$143,129
$399, 508
$715,057
30,083
3,049
9,188
35, 511
2,574
3,713
124,474
5,896
12, 759
320,629
24, 660
54, 219
598,007
30,439
86, 611
38, 677
17, 240
50, 559
34,422
176,129
122, 665
231, 694
59, 560
92, 357
177, 551
575, 637
837, 722
1942
1941
37,302
119,843
193, 017
30, 549
2,211
4,542
90, 349
9,294
20, 200
150, 619
12, 029
30, 369
1941
1
Includes 1- and 2-family dwellings combined with stores.
2 Includes multi-family dwellings combined with stores.
Table 3 . — B U I L D I N G COSTS—Cost of building the same standard house in representative cities in
specific months x
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Administration]
T o t a l cost
C u b i c foot cost
F e d e r a l H o m e L o a n B a n k District a n d city
N o . 2—New Y o r k :
Atlantic City, N . J
Camden, N . J
N e w a r k , N . J __
Albany, N . Y
Buffalo, N . Y
White Plains, N . Y
_ _
N o . 6—Indianapolis:
E v a n s v i l l e , Tnd
I n d i a n a p o l i s , Ind
South Bend, Ind .
Detroit, Mich
Grand Rapids, Mich
N o . 8—Des M o i n e s :
D e s M o i n e s , Iowa
Duluth, Minn
St. P a u l , M i n n
Kansas City, M o
St. Louis, M o _ _ .
Fargo, N . D
Sioux Falls, S. D_
N o . 11—Portland:
Boise, I d a h o
G r e a t Falls, M o n t . .
P o r t l a n d , Ore __ _
Salt L a k e C i t y , U t a h
Seattle, W a s h
Spokane, W a s h . . . _
Casper, W y o .
__
_
....
_
_. _ _
__
___
_
_
___
.. ________
__
-
__
_ _ _ _ __
__
_
_ _ __ ___
______
1940
1939
1938
July
July
July
July
$7, 257
7,745
7,267
6,735
6,872
6,919
$7,165
6,799
7,015
6,631
6,631
6,545
$5,984
5,956
5,713
5,634
5,713
5,430
$5,867
5,574
5,492
5,522
5,607
5.433
$5,932
5,705
5,479
5,667
5,797
7,250
6,833
7,241
6,888
7,345
6,837
6,595
6,800
6,824
7,157
6,534
6, 393
6,641
6,486
6,536
6,111
5,491
5,896
5,843
5,658
5,897
5,956
5,553
6,118
5,824
5,806
5,343
6,142
5,914
6,792
6,659
7,018
7,067
6,039
6,362
6,593
6,675
6,546
6,941
6,677
5,953
6,184
6,702
6,506
6,474
6,824
6,536
6,007
6,162
6,617
6,212
6,242
6,640
6,240
5,830
5,813
6,230
6,352
6,162
6,485
5,879
5,568
5,752
6,164
6,287
6,000
6,548
6,116
5,421
5,605
6,016
6,117
6,199
6,546
5,751
5,460
5,843
6,374
7,674
7,190
7,674
7,192
7,559
7,536
6,552
7,179
7,549
7,575
6,567
6,824
7,590
5,708
7,156
7,477
7,180
6,567
6,617
7,553
5,686
7,057
7,340
7,166
6,455
6,701
7,294
5,299
6,807
7,188
6,939
6,386
6,270
6,888
5,202
6,010
6,342
6,314
6,024
6,161
6,932
5,132
6,016
6,255
6,114
6,522
5,860
7,109
5,087
5,911
6,256
6,620
6,452
July
July
July
April
Jan.
Oct.
$0.310
.333
.326
.300
.302
.294
$0.299
.283
.292
.276
.276
.273
$7,433
7,989
7,831
7,197
7,242
7,055
$7, 424
7,780
7,331
6,774
7,085
7,044
$7, 291
7,722
7,307
6,853
6,992
6,950
7,219
6,909
7,384
7,117
7,541
6,983
6,991
7,188
7,072
6,093
6,488
6,946
.272
.266
.277
.270
.272
.291
.291
.299
.295
.254
.270
.289
.320
__
_
1941
1941
_.__
_____
.
_______
___
1942
1942
.300
.315
.314
.273
.259
.260
.277
.260
.243
.242
.260
.279
.304
.221
.284
.300
.289
.266
i The house on which costs are reported is a detached 6-room home of 24.000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor; three
bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, and unfinished
attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish
on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders.
August 1942
383
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Average month of 1935-1939=100]
E l e m e n t of cost
J u n e 1942 M a y 1942 Apr. 1942 Mar. 1942 F e b . 1942 J a n . 1942 D e c . 1941 N o v . 1941 Oct. 1941 S e p t . 1941 A u g . 1941 July 1941 June 1941
Material
Labor
Total cost
P
P
121.3
127.8
121.0
126.4
120.5
125.9
120.0
126.0
119.3
125.0
118.6
124.5
117.7
124.2
116.9
123. 9
116.0
123.3
114.4
120.7
112.6
120.0
110.7
119.3
109 2
118.6
P
123. 5
122.8
122.3
122.0
121.2
120.6
119.9
119. 2
118. 5
116.5
115.1
113.6
112 4
p Preliminary.
Table 5 . — B U I L D I N G COSTS—Index of wholesale price of building materials in the United States
[1935-1939=100; converted from 1926 base]
[Source: U. S. Department of Labor]
All b u i l d i n g
materials
Period
Brick a n d
tile
Lumber
Cement
Paint and
paint materials
Plumbing
and heating
Structural
steel
Other
1940: June
103.2
99.3
99.4
105.6
104.7
105.8
103.5
100.6
1941: June
July
August
September
October
November.
December
112.8
115.1
117.8
118.8
119.8
120.0
120.4
101.8
103.7
104.7
105.3
106.3
106.3
106.4
100.9
101.1
101.1
101.2
101.7
102.2
102.5
131.0
136. 2
142.0
143.8
144.2
143. 3
144.1
111.0
112.6
114.7
116.4
118.0
117.2
118.6
109.2
109.3
114.0
114.4
115.3
115.5
117.1
103.5
103.5
103.5
103.5
103.5
103.5
103.5
104.8
106.4
108.0
108.4
109.8
111.6
110.8
122.0
122.9
123.4
123.1
122.9
122.9
106.6
106.8
106.9
107.9
107.9
108.0
102.5
102.5
102.7
103.3
103.4
103.4
146. 5
147. 8
148.2
146.8
146. 4
146. 7
121.8
122.8
123.9
123.7
123.7
123.3
123.0
128.6
129.0
129.4
129.4
129.4
103.5
103.5
103.5
103.5
103.5
103.5
111.5
111.9
112.3
112.3
112.3
112.3
Percent change:
June 1942—May 1942
0.0
+0.1
0.0
+0.2
-0.3
0.0
0.0
0.0
June 1942—June 1941
+9.0
+6.1
+2.5
+12.0
+11.1
+18.5
0.0
+7.2
-_
1942: January
February
March
April
May
June
_
_
____
--
. -.
-
- -
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home-mortgage loans by
savings and loan associations, by purpose and class of association
all
[Thousands of dollars]
Purpose of loans
Class of association
Period
1940
.-
Jan.-June
June
-
-
-
- ~-
1941
Jan.-June
-
July
August
September
October
November
December
1942
Jan.-June
January
February
March..
April
May__
June
-
-
-
--
..
__
-
-
384
_
-
-
-
Construction
H o m e purchase
Refinancing
$398,632
Reconditioning
Loans for
all other
purposes
Total
loans
Federals
State
members
Nonroembers
$426,151
$198,148
$63,583
$113,065
$1,199,579
$509,713
$483,499
$206,367
172, 594
35,523-
197, 868
38, 402
101, 398
17,147
30, 233
5,691
56, 268
10, 221
558, 361
106, 984
239,334
47,435
222,194
42, 214
96,833
17,335
437,065
580,503
190,573
61,328
109,215
1,378, 684
584,220
583,804
210,660
210, 263
44, 207
44, 918
42,987
40, 782
37,722
30,103
30,290
258, 961
55, 993
55,682
55,973
58,052
59, 874
48,816
43,145
98, 054
17,891
16, 816
15, 785
15, 871
16,283
13,340
14,424
30, 053
5,633
6,022
5,571
5,884
5,361
4,267
4,170
55, 825
9,916
9,534
9,411
9,345
8,698
8,223
8,179
653,156
133, 640
132,972
129, 727
129,934
127,938
104, 749
100, 208
279, 679
57, 542
56, 564
57, 592
54,786
52,507
41,910
41,182
273, 503
54,857
55,676
54,542
54,303
54,930
46,890
43,960
99, 974
21, 241
20,732
17,593
20,845
20,501
15,949
15,066
119, 393
22,791
20,799
21,775
20, 488
17,610
15,930
266, 229
34,127
33, 769
40,930
52,196
53,095
52,112
81, 703
12,854
12,325
13,225
14, 508
13,607
15,184
21, 390
3,190
3,138
3,547
4,083
3,866
3,566
43, 092
6,571
6,725
7,890
7,772
6,831
7,303
531, 807
79, 533
76, 756
87, 367
99,047
95,009
94, 095
210,115
31,142
31,919
36,325
38, 484
36, 966
35, 279
238, 488
35, 312
33,939
38,030
43,937
43,005
44, 265
83, 204
13,079
10,898
13,012
16,626
15,038
14, 551
Federal Home Loan Bank Review
Table 7.—LENDING—Estimated volume of new
loans by savings and loan associations
Table 8.—RECORDINGS-r-Estimated nonfarm
mortgage recordings, $20,000 and under
[Amounts are shown in thousands of dollars]
[June, 1942]
[Thousands of dollars]
C u m u l a t i v e n e w loans
(6 m o n t h s )
N e w loans
Federal H o m e Loan
Bank District and
class of association
j
June
1942
\ $94,
U N I T E D STATES
Federal
State member
Nonmember
57,542
54,857
21,241
9,884
9,963
14,493
2,830
5, 923
1,131
2,911
5,857
1,195
9,924
2,313
4,141
3,470
49,871
65,069
-23.4
4,974
7,503
2,016
15, 342
26, 823
7,706
22,412
32,615
10,042
-31.5
-17.8
-23.3
10, 336
14,076
54, 277
61,878
-12.3
2,118
3,681
4,537
3,920
3,978
6,178
13,056
19, 207
22,014
17,176
18,446
26,256
-24.0
+ 4.1
-16.2
9,293
8,062
10,991
47,768
51,260
-6.8
3, 440
2,621
3,232
3,032
2,827
2,203
4,849
2,738
3,404
16,972
14, 592
16, 204
19,961
13, 790
17,509
-15.0
+5.8
-7.5
13,459
12, 382
18,004
74,215
89,143
-16.7
5,247
6,523
1,689
5,483
5,591
1,308
8,845
7,752
1,407
31, 821
34, 295
8,099
43, 430
38, 034
7,679
-26.7
-9.8
+5.5
.. -
17,394
18,470
23, 015
97, 332
113,234
-14.0
.- -
6,484
9,404
1,506
6,829
9,768
1,873
8,367
11, 322
3, 326
36, 468
51,215
9,649
42,102
56, 863
14, 269
-13.4
-9.9
- 3 2 . 4.
4,975
4,996
6,536
28, 870
33, 384
-13.5
.-.
Federal.. -.
State member
Nonmember.,.
W inston- Salem
Federal
_.
State member
Nonmember
Indianapolis
Federal
State member
Nonmember
...
Chicago
Federal
State member
Nonmember
..
....
Des Moines _
FederaL
State member
Nonmember.
2,475
2,273
248
3,408
2,881
247
14, 231
13,079
1,560
17,066
14, 980
1,338
-16.6
-12.7
+16. 6
9,172
9,788
13,165
53, 439
66,875
-20.1
3,332
4,272
1,568
3,567
4,473
1,748
5,204
5, 976
1,985
19, 473
25, 955
8. 011
26, T27
31,380
9,468
-25.2
-17.3
-15.4
4,842
4,602
7, 450
25, 608
35,064
-27.0
2,119
1,853
870
2, 277
1,493
832
3, 793
2, 286
1, 371
12, 027
9,242
4,339
17,596
11,643
5,825
-31.6
-20. 6
-25. 5
4, 013
4,394
5, 892
26, 445
31, 881
-17.1
1,241
1 2,686
86
1, 620
2, 711
63
2, 529
3. 208
'155
10, 295
15, 700
450
13,511
17, 707
663
-23.8
-11.3
-32.1
3,330
3,824 I
5,150
23,112
26, 824
-13.8
1,815
1,032
483
2,193
936
695
2, 835
1. 252
1, 063
12,905
6. 545
3, 662
14, 861
6, 241
5, 722
-13.2
+4.9
-36.0
4,796
17, 063
24, 864
-31.4
2,480
2,344
151
_
Little Rock
Federal
State member
Nonmember_..
Federal...
State member
Nonmember
.
1 2,638 1 2,835 1
Portland
Federal
State member
Nonmember
L o s Angeles
2,914
1, 829
53
10, 646
5, 287
1,130
16,360 | - 3 4 . 9
-33. 0
7, 893
611 1 + 8 4 . 9
. 1 5,171 1 5,357
10, 072
33, 807
53, 680 1
2, 684
2, 613
60
5, 904
4,132
36
16,879
16, 548
380
...
-37.0
1,016
2,907
8,233
5, 992
3,197
33, 662
694
115
137
1,278
233
1,036
75
198
87
1,872
630
4,769
382
344
236
1, 604
445
3,284
196
301
162
2,054
115
800
18
166
44
8,912
2,296
18, 788
954
1,860
852
8,584
1,940
8,459
5,394 10, 626
6,422
41,425
3,524
5,060
918
1,022
4,912
3, 547
639
4,755
4,076
6,550
3. 324
3,098
17 393
24, 032
8,068
2,160
7, 825
854
4,790
4,773
28, 470
216
7,183
669
183
1,603
374
233
6.498
1,094
111
731
12
337
3,896
557
110
4,478
185
1,190
24, 389
2,891
12, 926
4,721
5,909
280
7,634
4,871
36, 341
446
2,133
751
1,329
3,785
1,986
525
1,971
576
360
892
579
239
277
244
1,554
403
582
742
1, 054
929
664
470
1,065
914
1,183
1,360
777
1,002
566
357
1,475
440
506
643
746
932
243
282
1,079
2, 779
4,764
4,388
4, 485
7,167
3,736
1,878
7,144
21,032'
3, 321
8,176
731
4,344
4, 525
42,129
2,105
18, 297
630
526
1,890
905
774
6,571
831
731
215
3,833
296
198
2,453
1,874
3,818
33, 775
4,536
6,371
2,840
8,407
31
2,522
5,090
25. 261
4,206
2,165
1,102
1, 738
2,996
5,411
31
633
1,889
1,031
4,059
9,999
15,262
10, 321
2,089
6,070
39
4,652
7,090
30, 261
7,383
2,938
1,671
418
4,045
2,025
39
2,528
2,124
5,920
1,170
21,547
8,714
5,919
2,720
5, 378
97
3,846
4,116
22,076
1, 496
2,008
2,193
202
20
387
1,030
1,242
46
15
1, 506
874
2,838
57
103
527
1,209
1,965
53
92
465
534
3,063
36
18
4,381
5, 752
11,301
394
248
6,891
4, 225
1,383
4,214
5,165
21, 878
436
2,162
296
208
3,769
237
721
273
63
2,931
165
135
191
175
717
509
628
478
96
2,503
301
1,648
617 !
4,283
249
1,487
562
20
3,978 13, 898
~~ 4,481
843
1,884
2,141
2,539
11 888
811
1,149
860
1, 661
83
142
236
382
265
676
149
794
1,153
271
236
481
1,001
497
148
893
3,313
2,735
1,629
4,211
2,835
843
2,488
1,711
2,515
10, 776
95
159
563
536
1, 309
173
69
81
264
110
319
57
60
210
811
1,282
68
144
155
604
166
487
155
194
16
517
181
1, 553
54
559
471
2,196
1, 804
5. 296
450
New York
N e w Jersey
New York
Pittsburgh
.... . .
Delaware
Pennsylvania
W e s t Virginia
Winston-Salem
Alabama..
D i s t r i c t of Col
Florida
Georsria
Maryland
N o r t h Carolina
S o u t h Carolina
Virginia
__
Cincinnati
Kentucky _ .
Ohio
Tennessee. . . . .
Indianapolis
Indiana
Michigan
Chicago
Illinois.
Wisconsin _
Des Moines.
Iowa
Minnesota
Missouri
North Dakota
South Dakota
Little Rock
.
Arkansas
Louisiana
Mississippi.
N e w Mexico
Texas . .
Colorado
Kansas.
N e b r a s k a . . . _.
Oklahoma
Idaho
Montana
Oregon
Utah
Washington.
Wyoming
L o s Angeles
Federal
State member.
Nonmember
August 1942
2,516
2, 595
60
1
29,177
23, 911
592
-42.1>
-30. 8
-35. 8
Total
1,410
758
8, 762
'283
822
282
Connecticut
Maine
Massachusetts
New Hampshire...
Rhode Island
Vermont
Portland
1, 777
782
276
1, 462
871
305
InOther
divid- m o r t uals gagees
12. 317
Boston
Topeka
Topeka
Banks Mutual
and
savtrust
ings
companies b a n k s
$105, 278 $29, 764 $74, 588 $16,043 $62, 730] $53, 847 $342, 250
-18.6
-24.9
-12.8
-16.8
Pittsburgh
Federal
State member
N o n m e m b e r . _.
1941
210,115 ^ 7 9 , 6 7 9
238, 488 273,503
99,974
83,204
New York
_
1942
Percent
change
095 $95, 009 $133,640 $531,807 $653,156
36. 966
43, 005
15, 038
F e d e r a l _. .
State member
Nonmember
Cincinnati
June
1941
1 35. 279
44, 265
14, 551
Boston
Federal...
State member
Nonmember
May
1942
Savings I n s u r and
ance
loan
comassocia- panies
tions
Federal H o m e Loan
B a n k District a n d
State
Arizona
California
Nevada
.i
I
29
41
280
97
3S4
38
346
5, 533
3,046 15, 702
10, 258
3, 541
38, 083
245
5,228
60
10
351
3,034 15,265
2
8f
316
9, 865
54
3,177
13
976
36. 869
238
1
1
77
385
Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgases recorded
[Amounts are shown in thousands of dollars]
Savings and loan
associations
Insurance
companies
Banks and trust
companies
Mutual savings banks
Individuals
Other
mortgagees
All
mortgagees
Period
Total
1941: June
_
July
August
September.
October. __
November.
December.
$139, 647
142,695
139,156
135, 754
138, 670
113, 353
112, 764
1942: January.. .
February..
March
April
May
June
90, 572
86, 752
100, 296
108,582
107,937
105, 278
Percent
Total
Percent
32.4 $37,372
32.2 37, 262
32.5 35,995
31.9 36, 250
31.0 39, 896
30.0 32, 527
28.7 37,185
8.7
8.4
8.4
8.5
28.2
29.3
29.9
30.2
30.8
30.8
9.7
9.7
9.7
9.6
9.1
31,062
28, 546
32, 650
34,466
31,780
29, 764
Percent
Total
9.5
$107, 827
108, 555
105,153
100,712
106,109
92, 316
99,855
77, 631
70, 221
78,086
82, 082
77,563
74, 588
1941: Jan.-June
June
July
August
September
October
November
December
1942: Jan.-June
January.
February
March
April
May
_.
June
_
_
._
Less
than
5,000
5,00019,999
Total
Percent
Combined Pertotal
cent
4.8 $67, 380
4.8 71,456
4.5 69, 002
4.9 70, 377
5.1 74,891
5.2 64, 024
4.9 64,524
15.6 $57,487
16.1 61,991
16.1 59, 580
16.6 61,034
16.7 65,636
17.0 55, 810
16.4 58, 774
13.4
14.0
13.9
14.4
14.6
14.8
15.0
$430,216
443,039
428,099
424, 929
447,990
377, 683
392,355
100.0
100.0
100.0
100.0
100.0
100.0
100.0
24.1
23.7
23.3
22.8
22.2
21.8
4.2
3.5
3.6
4.2
4.5
4.7
18.4
18.0
18.0
17.4
18.2
18.3
15.4
15.8
15.5
15.8
15.2
15.7
321, 396
296, 041
335, 636
359, 968
350,187
342, 250
100.0
100-0
100.0
100.0
100.0
100.0
13, 523
10,, 405
12,162
15,310
15,904
16, 043
59, 033
53, 383
60, 322
62, 707
63, 807
62, 730
49, 575
46, 734
52,120
56,821
53,196
53,847
[Premium-paying; thousands of dollars]
Monthly volume
Period
60,000
and
over
20,00059,999
Percent
Total
25.1 $20, 503
24.5 21,080
24.6 19,213
23.7 20,802
23.7 22, 788
24.4 19;, 653
25.5 19, 253
County size (dwellings0
Period
Percent
Table 1 1 . — F H A — H o m e mortgages insured
Table 10.—FORECLOSURES—Estimated nonfarm real-estate foreclosures, by size of county
U.S.
total
Total
31,941
5,047
4,834
4,251
4,374
4,408
4,204
4,337
3, 601
63ft
437
399
515
544
448
524
4,876
727
741
668
654
697
705
659
6,884
1,149
959
948
975
945
890
1,028
16, 580
2,541
2,697
2,236
2,230
2,222
2,161
2,126
23,074
4,000
3,630
3,935
3,856
3,813
3,850
2, 419
439
370
669
461
333
367
3,717
635
592
678
561
623
637
5,155
814
808
863
867
968
835
11,783
2,112
1,860
1,944
1,967
1,889
2,011
1941: June
July
August
September
October. _.
November.
December.
1942: January.__
February..
March
April
May
June
,
Total
insured
at end of
period
Title I
Class 3
Title II
Title VI
2 $3,289
2,809
1,126
1,552
1,536
1,361
1,850
$74,809
81, 531
70,227
73,083
85, 290
76, 920
87,516
$230
436
560
1,143
2,190
3,578
5,294
$3,182,629
3,267,406
3,339,317
3,415,095
3, 504, 111
3, 585,970
3,680,630
87,167
70, 799
67,780
55, 448
60,177
65, 810
6,556
8,483
12, 273
11,424
13, 554
15,876
3,776, 238
3,856, 975
3,938, 530
4, 007, 369
4, 082,967
4,166,434
1,885
1,455
1.502
1,967
1,867
1,781
1
Figures represent gross insurance written during the period and do not take
account of principal repayments on previously insured loans.
1
January-June loans insured under February Amendment included in June
total.
Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities
[Thousands of dollars]
Lending: operations
J u n e 1942
C a p i t a l a n d p r i m •ipal
liabilities J u n e 30, 1942
P r i n c i p a l assets J u n e 30, 1942
Federal H o m e L o a n B a n k
Advances
Boston,.
N e w York . _
Pittsburgh.
Winston-Salem
Cincinnati
Indianapolis
Chicago
__
DesMoines-Little Rock .
Topeka
Portland
Los Angeles _ _
_ _
_ __ _
-
- .
_
_
-
-
- -
_.___..__.
-
.. . _
_ _. ..
.. ___ _ _ . - _ .
_. . _ _ _ _
__
___...
June 1942 (All Banks)
M a y 1942
_ .
June 1941
1
386
$1,959
2, 677
1,822
2,731
1, 541
1,130
2,871
1,944
484
663
1,398
1,924
Repayments
$1,794
1, 304
568
972
596
359
1,842
339
346
302
618
624
Advances
outstanding
Cash i
Government
securities
Capital 2
$11,647
26, 716
15,523
25, 829
14,874
12,668
29,188
14,074
9, 652
6, 828
7,307
18,339
$5, 674
1,928
3, 476
7,133
3,962
1,325
8.318
5,046
1,647
2,669
2,934
4,956
$7, 720
8,488
6,201
2,325
13, 042
9,810
5,562
4,050
3,875
3,620
1,930
2,745
$18,606
25,930
15,840
16,928
23,181
11,059
21,522
11,381
12.123
10.052
8.166
14, 851
Debentures
$4,000
8,500
9.000
16,750
2, 500
9. 000
16,000
10.000
2,500
2,000
3.000
8,250
Member
deposits
$2. 374
2.776
361
1,522
6,148
3, 672
5.379
1,712
1
1,084
983
1, 685
T o t a l assets
J u n e 30,
1942 1
$25, 082
37, 243
25, 277
35, 396
31,953
23, 841
43.109
23, 207
15,217
13,146
12,194
26, 061
21,144
9,664
192, 645
49,068
69, 368
189,639
91,500
27, 697
311, 726
6,884
11,017
181,165
58,035
68,130
189, 958
91,500
24,946
308, 516
29, 317
4,692
169, 897
59, 704
63,407
183, 317
75,500
31, 307
293, 677
Includes interbank deposits.
1
Capital stock, surplus, and undivided profits.
Federal Home Loan Bank Review
Table 1 3 — S A V I N G S — S a l e s of war bonds 1
Table 1 4 — S A V I N G S — H e l d by institutions
[ T h o u s a n d s of dollars]
[ T h o u s a n d s of dollars]
Period
Series E 2
1941.
June
July
August
S e p t e m b e r . __
October..
November.
December.
_
_
_
1942: J a n u a r y . .
February
March
April
May
June _
•
Series F
Series G
Total
$1,622,496
$207,681
$1,184,868
$3,015,045
102,517
145, 274
117,603
105, 241
122,884
109,475
341,085
28,876
27,359
20,318
18,099
22, 963
18, 977
33,272
183,134
169,499
127,685
108,987
124,866
105,035
154,242
314,527
342,132
265,606
232,327
270, 713
233,487
528, 599
667,411
397, 989
337,599
326,660
421,831
433,223
77,559
51,820
41,070
40,003
42,465
41,041
315, 577
253,391
179, 223
163,839
170,060
159,681
1,060,547
703,200
557,892
530,502
634,357
633,945
1
U . S. T r e a s u r y W a r Savings Staff, A c t u a l deposits m a d e to t h e credit of
t h e U . S. T r e a s u r y .
2
Prior to M a y 1941: " B a b y b o n d s . "
Insured
savings a n d
loans l
E n d of period
1940: J u n e
December
-.
1941: J u n e
J u l y ._
August
September
October
November
-
_
1942: J a n u a r y
F e b r u a r y . . _.
March
April
May
June..
_
$2,019,809
2, 202,135
2,433,513
2,449,807
2,465,223
2,486,992
2, 518,006
2, 551, 528
2,597,373
Mutual
savings
banks 2
Insured
commercial
banks 3
$10,589,838
10,617,759
10,606, 224
$12,754,750
13,062, 315
13,107, 022
10,489,679
13, 261,402
2, 589,466
2,601,055
2,615,277
2, 638,152
2, 660, 302
2, 736, 258
10, 354, 533
1
P r i v a t e r e p u r c h a s a b l e capital as reported to t h e F H L B
Month's Work. All deposits.
3 F D I C . T i m e deposits evidenced b y savings passbooks.
2
Administration.
Table 1 5 — I N S U R E D ASSOCIATIONS—Progress of institutions insured by the FSLIC '
[ A m o u n t s are s h o w n in t h o u s a n d s of dollars]
Period and class of association
N u m b e r of
associations
Total
assets
N e t first
mortgages
held
Private
repurchasable
capital
Operations
Federal
Home
Loan B a n k N e w m o r t - N e w priPrivate
investadvances
repurgage loans vate
ments
chases
G overnm e n t investment
Repurchase rati*
ALL INSURED
1941: J u n e
July--.
August
September
October
November
December
2,313
2,317
2,322
2,330
2,332
2,343
2,343
1942: J a n u a r y
February
March
April
May___:
June
2,349
2,353
2,358
2,363
2, 363
2,374
3,313,418
3, 323,180
3,335,101
3,356,213
3, 384,344
3. 461, 228
2, 754, 777
2, 763, 579
2, 774,108
2, 790,135
2,800,673
2, 827,956
2,589,466
2,600,172
2, 612, 736
2,633,014
2,660, 098
2, 736, 258
191.769
186.254
185,664
185,651
185,710
185,783
1941: J u n e
July
August
September
October
November
December
1,452
1,457
1,458
1,459
1,458
1, 462
1,460
2,028,138
2,025,020
2,051,305
2,076,618
2,103. 674
2,127, 561
2,173,326
1,687,086
1,717,451
1, 750,843
1,775,117
1,801,033
1,815,666
1, 824, 646
1, 553, 712
1,566,751
1,580,623
1, 595,179
1,615,812
1,637,238
1,668,415
1942: J a n u a r y
February
March
April
May
June
1,461
1,461
1,461
1,464
1,464
1,464
2,131,212
2,133, 251
2,137, 579
2,151,862
2,170, 868
2, 205, 921
1,824,376
1, 829, 218
1,832,341
1,842,422
1,846, 790
1, 849, 400
861
860
864
871
874
881
1.131, 625
1,131, 342
1,136,630
1,146,892
1,159,212
1,175, 735
1,189,616
1,182, 206
1,189,929
1,197, 522
1, 204, 351
1, 213,476
1, 255,307
$144, 331
142,870
147,044
153,897
159,298
161,199
193,275
$85,117
84,994
84, 794
82,993
80, 767
65,241
63, 506
$61, 448
103, 886
62,374
61,495
67,132
60, 818
74,801
$26, 779
90, 728
48,010
42,800
40,142
33, 263
35,728
43.6
87.3
77.0
69.6
59.8
54.7
47.8
180,360
172,260
167, 535
161,571
157,870
170, 066
49, 549
49,387
56,934
62,015
59,006
58, 692
105, 792
53,449
56,701
58,193
53,808
72, 788
118,666
47, 2,29
47,086
40,443
31, 503
26,152
112.2
88.4
83.0
69.5
58.5
35.9
169, 247
166,464
159, 622
159, 614
159, 775
159,925
160,060
103,696
102, 513
106, 624
112,033
116, 723
117,666
144,049
57,542
56, 564
57, 592
54, 786
52, 507
41,910
41,182
40,030
70, 290
40, 730
40, 254
44, 341
39, 212
48,872
14,530
61,061
30, 443
26, 765
23,799
18,984
20,400
36.3
86.9
74.7
66.5
53.7
48.4
41.7
1,658,444
1, 662, 269
1, 667, 983
1,683, 232
1, 701,065
1, 735, 932
156,079
151,295
150, 776
150,776
150,776
150, 776
132,843
127, 235
123,748
118,639
116,327
127, 623
31,142
31,919
36,325
38,484
36, 966
35, 279
70, 962
35,670
37,377
38, 301
35, 759
47,495
81,663
30,714
30,000
24,088
18, 515
14, 794
115.1
86.1
80.3
62.9
51.8
31.1
868, 307
879,295
887,322
898,709
911,664
922, 645
927, 292
880,193
884,008
885, 552
891, 967
902, 346
914,799
929,110
37,054
37,048
35,950
35,970
36,012
36,134
36,180
40, 635
40,357
40,420
41,864
42,575
43, 533
49, 226
27,575
28,430
27, 202
28,207
28,260
23,331
22,324
21,418
33, 596
21, 644
21,241
22, 791
21, 606
25, 929
12,249
29,667
17, 567
16, 035
16,343
14, 279
15,328
57.2
88.3
81.2
75.5
71.7
66.1
59.1
930,401
934, 361
941, 767
947, 713
953,883
978, 556
931,022
937,903
944, 753
949, 782
959,033
1,000, 326
35,690
34,959
34,888
34, 875
34,934
35, 007
47, 517
45,025
43,787
42,932
41, 543
42,443
18,407
17,468
20,609
23,531
22,040
23,363
34,830
17,779
19,324
19,892
18,049
25,293
37,003
16, 515
17,086
16,355
12,988
11,358
106.2
92.9
88.4
82.2
72.0
44.9
$3,159, 763 $2,555,393 $2,433,905
2,596, 746 2,450, 759
3,156,362
2,466,175
2,638,165
3,187,935
2,487,146
2,673,826
3,223,510
2, 712,697 2, 518,158
3,262,886
2, 738, 311 2,552,037
3,303, 296
2,597, 525
3, 362,942 2,751,938
$206,301
203, 512
195, 572
195,584
195,787
196,059
196,240
!
!
|
I
!
FEDERAL
STATE
1941: J u n e
July
August
September
October
November
December
1942: J a n u a r y
February
March
April
May
June
__-
>Data presented in t h i s t a b l e h a v e been revised in accordance w i t h recently changed r e p o r t i n g procedures.
August 1942
387
FEDERAL
CONTENTS
FOR
AUGUST - 1942
TENTH ANNIVERSARY ISSUE
HOME
Page
353
MESSAGE FROM THE PRESIDENT
M E S S A G E F R O M T H E ADMINISTRATOR OF T H E N A T I O N A L H O U S I N G A G E N C Y
LOAN
.
354
M E S S A G E F R O M T H E F E D E R A L H O M E L O A N B A N K COMMISSIONER
355
T H E GOAL W E H A V E SOUGHT
35$
Functions a n d accomplishments of t h e Federal H o m e Loan B a n k System.
T H E PATH W E CAME B Y
BANK
353
A Glimpse of the History of t h e Federal Home Loan B a n k Act.
T H E ROAD W E H A V E TRAVELED
352
A Bird's-eye View of B a n k System Operations, 1932-1942.
REVIEW
NATIONAL HOUSING
AGENCY
John B. Blandford, Jr., Administrator
FEDERAL HOME LOAN
BANK ADMINISTRATION
MONTHLY SURVEY
Midway in 1942
General business conditions
Residential construction
Building costs
Mortgage recordings
New mortgage-lending activity of savings and loan associations
Foreclosures
Insured savings and loan associations
377
377
373
373
378
379
3§Q
330
John H, Fahey, Commissioner
STATISTICAL TABLES
FEDERAL HOME LOAN
BANK SYSTEM
New family dwelling units—Building costs—Savings and loan lending—Mortgage
recordings—Total nonfarm foreclosures—FHA activity—Federal Home Loan
Banks—Sales ofj U. S. war savings bonds—Savings in selected financial
institutions—Insured savings and loan associations . . ". r '
382-387
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
UNITED STATES HOUSING
CORPORATION
Vol. 8
No. 11
REPORTS
The home front
Honor roll of war-bond sales
From the month's news
#
Directory of member, Federal, and insured institutions added during J u n e Ju]
y
372
373
375
380
The photographs on page 353 and 360 are by Harris
& Ewing; on page 359, by Rideout, National Park
Service, U. S. Department of the Interior.
SUBSCRIPTION P R I C E OF REVIEW. The REVIEW is the Federal Home Loan Bank Administration's medium of communication with member institutions
of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Administration. The REVIEW will be sent to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside
of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered
from Superintendent of Documents, Government Printing Office, Washington, D. C.
APPROVED BY T H E BUREAU OF T H E BUDGET"
U. S . GOVERNMENT PRINTING O F F I C E : 1 9 4 2
FEDERAL HOME LOAN BANK DISTRICTS
\ofc&
a n a BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
$
FEDERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B . J . R O T H W E L L , C h a i r m a n ; E . H . W E E K S , Vice C h a i r m a n ; W . H .
C . E . BROUGHTON, C h a i r m a n ; H . G . ZANDER, J R . , Vice Chairman; A. R.
N E A V E S , P r e s i d e n t ; H . N . F A U L K N E R , Vice P r e s i d e n t ; L . E . D O N O V A N ,
G A R D N E R , P r e s i d e n t ; J . P . D O M E I E R , Vice P r e s i d e n t ; H . C .
S e c r e t a r y - T r e a s u r e r ; P . A. H E N D R I C K , C o u n s e l ; B E A T R I C E E . H O L L A N D ,
Treasurer; CONSTANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD,
Assistant Secretary.
Counsel.
NEW
DES
YORK
JONES,
MOINES
Chairman;
C . B . R O B B I N S , C h a i r m a n ; E . J . R U S S E L L , Vice C h a i r m a n ; R . J . R I C H A R D -
N U G E N T F A L L O N , P r e s i d e n t ; R O B E R T G . C L A R K S O N , Vice P r e s i d e n t ;
SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J. M . M A R T I N , Assistant Secretary; A. E . M U E L L E R , Assistant Treas-
GEORGE
MACDONALD,
Chairman;
F.
V.
D.
L L O Y D , Vice
D E N T O N C. LYON, Secretary; H . B . D I F F E N D E R F E R , Treasurer.
u r e r ; E M M E R T , J A M E S , N E E D H A M & L I N D G R E N , Counsel.
PITTSBURGH
LITTLE ROCK
E . T . T R I G G , C h a i r m a n ; C . S. T I P P E T T S , Vice C h a i r m a n ; R . H .
RICH-
ARDS, President; G . R . P A R K E R , Vice President; BL H . G A R B E R , Secretary-Treasurer.
W . C . J O N E S , J R . , Chairman; W . P . G U L L E Y , Vice Chairman; B . H .
W O O T E N , President; H . D . W A L L A C E , Vice President-Secretary; J . C .
C O N W A Y , Vice P r e s i d e n t ; W . F . T A R V I N , T r e a s u r e r ; W . H . C L A R K , J R . ,
WINSTON-SALEM
Counsel.
H. S. H A WORTH, C h a i r m a n ; E . C . BALTZ, Vice Chairman; O. K . L A R O Q U E , President-Secretary; J o s . W . H O L T , Vice President-Treasurer;
T . S P R U I L L T H O R N T O N , Counsel.
CINCINNATI
R.
P.
DIETZMAN,
Chairman;
¥ M . MEGRUE
W A L T E R D . SHULTZ, President;
tary;
A. L . : M A D D O X ,
BROCK,
Vice
STETTINIUS
&
PORTLAND
Chairman;
W . E . J U L I U S , Vice President-Secre-
Treasurer; T A F T ,
TOPEKA
P . F . G O O D , Chairman; R o s s T H O M P S O N , Vice Chairman; C. A. STERLING,
President-Secretary; R . H . B U R T O N , Vice President-Treasurer; JOHN
S. D E A N , J R . , General Counsel.
HOLLISTER,
B E N A. P E R H A M , Chairman; E . E . C U S H I N G , Vice C h a i r m a n ; F . H .
JOHNSON,
General Counsel.
President-Secretary;
C.
GREENE,
RUSSELL
PARKER,
President;
G.
E.
OHMART,
Secretary-Treasurer;
K B I R G & D E V A U L T , Counsel.
Vice
PresidentDUSEN-
Los ANGELES
H . B . W E L L S , C h a i r m a n ; F . S. CANNON, Vice Chairman-Vice President;
T.
BOGARDUS,
B E R Y , Counsel.
INDIANAPOLIS
FRED
IRVING
Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E
Vice
HAMMOND,
President;
BUSCHMANN,
D.
G.
DAVIS,
Chairman;
PAUL
E N D I C O T T , Vice
Chairman;
M.
M.
H U R F O R D , President; C . E . B E R R Y , Vice President; F . C. N O O N , Secretary-Treasurer; VIVIAN SIMPSON, Assistant Secretary.
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