Full text of Federal Home Loan Bank Review : August 1944, Vol. 10 No. 11

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FEDERAL
HOME
LOAN
BANK
Vol.

Washington, D. C.

10, No. Jl

AUGUST 1944

Real-Estate Tax Problems and Proposed Reforms
N A T I O N A L HOUSING
AGENCY
John B, Blandford, Jr., Administrator

FEDERAL HOME LOAN
BANK ADMINISTRATION

.

.

293

Member Associations Showed Further Improvement Last
Year

298

REGULAR FEATURES
Home Front

292

War Bond Sales

303

Monthly Survey

305

Directory Changes of Member, Federal, and Insured Institutions

311

John H. Fahey, Commissioner

FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
UNITED STATES HOUSING
CORPORATION!




TABLES

*

New family-dwelling units

312-313

Building costs

313-314

>v.:

Savings and loan lending

314-315

Mortgage recordings

315-316

Sales of U. S. war savings bonds

316

Savings in selected financial institutions

316

Federal Home Loan Banks

316

Insured savings and loan associations

317

F H A activity

317

Foreclosures

317

ill HI
Million-dollar
banks increasing

Smaller banks are moving rapidly
into the higher brackets, the first
1944 edition of the Rand McNally
Bankers Directory, the Blue Book,
shows. New York, Boston, Detroit,
Chicago, Los Angeles and San Francisco now have billion-dollar banks.
On June 30, 1939, there were 2,871
banks with total resources under
$250,000. On December 30, 1943,
there were 440 in this group—^oneseventh as many. During this period,
the number of banks in a higher
classification (resources of $25,000,000
and over) increased from 384 to 607.
In 1939 there were 9,434 banks with
less than $1,000,000 in resources, and
5,811 with over $1,000,000. In 1943,
the situation was almost exactly the
reverse. There were 5,243 banks
with less than a million dollars, and
9,511 with more. The total resources
of all banks have increased $54,814,309,000 in the last 5 years. Bank
deposits are the highest in history—
over $118,000,000,000—almost twice
what they were 5 years ago.
Increased
F H A authorization

On June 30, Public Law 392 of the
78th Congress was approved, increasing the Federal Housing Administration's war housing mortgage insurance
authorization from $1,600,000,000 to
$1,700,000,000. This additional authorization of $100,000,000 is expected
to be sufficient to accommodate the
balance of the privately financed warhousing program for essential inmigrant war workers.
The Act also includes special provisions permitting the insurance of refinancing loans under Title VI after
July 1, 1945, or the expiration of the
emergency, in those cases where the
original loan was insured under the
war-housing amendments to the National Housing Act. The amount of
the refinancing loan under this section
is restricted to the face amount of the
original mortgage and must not be
extended for a period longer than
292




the unexpired term of the loan refinanced. The purpose of this provision is to simplify lending for the postwar improvement of privately financed
war housing, and also to facilitate the
marketing of these properties.
The Federal Housing Administration reports that in recent months
more than 92 percent of war housing
has been insured under Title VI.
The life insurance
dollar in 1943

Income of life insurance companies
during 1943 was derived principally
from premiums paid by policyholders,
which accounted for 75 percent of the
total, while interest earned on investments amounted to 22.3 percent and
miscellaneous receipts constituted 2.7
percent, according to data published
in the Savings Bank Journal for July
1944.
About 42.4 percent of the income
dollar of these companies was paid to
policyholders and beneficiaries and
37.4 percent was added to policy
reserves. Operating e x p e n s e s a c counted for 13 percent of income, taxes
took 2 percent and dividends to stockholders amounted to 0.6 percent. The
balance of 4.6 percent of income was
applied to special reserves and surplus
funds.
State aid to
replanners

New York State, first to initiate
state-aided housing, has now added
another "first" to its list. The State
Division of Housing, inaugurating its
Community Development Service, has
announced that it is ready to give
any town or city help with its replanning problem.
State Housing Commissioner Ira S.
Rcbbins says that u . . . There are no
easy answers or cures to the highly
technical problems of housing, urban
redevelopment, community planning."
He added that the state has a big stake
in post-war planning and a responsibility to aid wherever it can. However,
local autonomy must be the basis for
the planning.

Program for
lumber industry

In order to alleviate the critical supply situation in the lumber and timber
basic products industry, the War Production Board has established "overall control of lumber effective August
1, 1944, through an allocation system
governing the procedures by which
sawmills, distributors, and all consumers may receive and/or deliver lumber.''
This program will carry out WPB requirements for allotting lumber to
claimant agencies and WPB industry
divisions for the third quarter of 1944.
A total of 9.2 billion board feet, equal
to the estimated supply for the third
quarter, has been allotted. Under the
plan, major industrial consumers will
receive 5.2 billion board feet, while 1.6
billion feet have been reserved for direct
military and export requirements.
Total output during the first quarter
of this year was almost 3 percent higher than in the same period of 1943.
However, on the basis of the production rate during the first quarter of this
year—34 billion board feet—the output will not reach the 35.5 billion feet
estimated by WPB as this year's need.
In addition, the present greatly depleted stock on hand includes types of
lumber which cannot be used to fill
essential demands.
In spite of the fact that last May,
logging and lumber activities were
added to the Production Urgency List
(for labor referrals) the employment
situation in the industry is still critical.
In the first quarter of this year it averaged about 477,000, approximately 53,000 below the average for the same
quarter last year. Further depletions
in the labor force will result from the
movement of seasonal agricultural
workers back to farms and from higher
draft quotas. The War Manpower
Commission instituted special programs in all major producing states in
an effort to bring additional workers
into the industry. Laborers from British Honduras, about 3,500 Canadian
woods workers and prisoners of war
are being used.
Federal Home Loan Bank. Review

REAL ESTATE TAX PROBLEMS AND PROPOSED
REFORMS
Savings and loan associations, by the nature of their business, are
concerned with problems of real property taxation.
This article is
intended to provide an impartial analysis of the present tax situation
and of the various arguments both for and against the proposed reforms.
•

TAXATION, according to the proverbial statement, is one of the two certainties of life, but the
inescapable nature of taxes in itself has deterred
people neither from seeking an equitable distribution
of public expenses nor from regulating their magnitude. However, because the day-to-day volume of
public costs can often be accommodated by the use
of public credit, and because revenue potentials have
considerable elasticity within the limitations of
specific taxing systems, methods of taxation frequently are out of step with changing circumstances.
As a result, maladjustments appear and tend to
expand until their cumulative effects demand some
remedy. Excise taxes, tariffs, income taxes and other
levies have been and are continuing to be subjects
of intensive study and hot debate, but the general
property tax as applied in this country is considered
by many as the classic example of an obsolete taxing
system, and proposals for its replacement or revision
are widespread and vociferous. The importance of
this movement lies in certain intrinsic features of the
tax itself and in the effect that it can have upon
property ownership.
The significance of property taxes to savings and
loan associations needs little explanation. That
excessive levies can depress property values and
thereby endanger the margin of safety behind outoutstanding loans; that they may hamper new home
construction, thus cutting off investment outlets;
and that they may jeopardize both the economic and
civic growth of a community are facts demonstrated
by painful experience. Although it is obvious that
blame for specific ills cannot often be laid exclusively
at the doorstep of taxation, it is equally apparent
that in many instances burdensome levies do represent contributing factors of significant weight.

of property, real and personal, tangible and intangible. The overwhelming proportion of the tax,
however, is levied upon real estate, and for this
reason virtually all remedial plans concern themselves
with real property taxes.
Just how important is this tax, not only to local
governments but to state governments? Since relief
may come from a reduction in the total levy, a redistribution of the tax among the populace and/or a
broadening of the tax base by the introduction of
new levies, the choice of a remedy for complaints is
involved in the answer to this question.
Total state revenues (excluding unemployment
compensation taxes) rose steadily between 1915
and 1929, declined somewhat during the depression
years through the middle of 1933, and resumed their
increase at a more rapid rate during the first part of
1937. State collections then leveled off until the
beginning of the war in Europe when they again
began to ascend.
During this time, however, state revenues from
general and selective property taxes remained com-

The Genera! Property Tax
The general property tax, which is levied by State
and local governments, is actually not one but
several taxes ordinarily grouped under that heading,
inasmuch as they are levied upon an assessed value
August 1944




2 93

paratively stable, the increase in total collections of
all kinds being accounted for principally by the introduction and expansion of the motor vehicle tax
and the motor fuel sales and other sales taxes.
Thus, property taxes declined in proportionate
importance from 50.5 percent of total state revenues
in 1915 to 7.9 percent by 1940, while the dollar
volume of collections from this source amounted to
about $264,700,000 in the latter year s*s compared
with $185,900,000 in the former. Correspondingly,
deficiencies in collections on the property tax at the
state level could be compensated for to a larger extent in the more recent years by adjustments in
other levies.
The local taxing entity, on the other hand, as
distinguished from state governments, presents a
different picture. The general property tax, which
is one of the oldest levies, continues to provide the
most important source of revenue for the local government, which because of its small jurisdiction has
been unable to take as great an advantage of the more
newly developed levies as have the states. The
heavy dependence of local governments upon general
property taxes is reflected in the almost insignificant
proportionate decline of collections from these sources
from an estimated 95.2 percent of total local revenues
in 1915 to 91.0 percent in 1940.
These observations are further highlighted by the
fact that local taxes from 1930 to 1940 have representedffrom 30 to 56 percent of all tax collections,
STATE AND LOCAL PROPERTY TAXES AS A PERCENTAGE
OF TOTAL STATE ANO LOCAL TAX COLLECTIONS
1915 TO 1940 - BY FISCAL YEARS

rRrPNT

-TOTAL

(915

'17

'19

'21

'23

PROPERTY

'25

'27

TAX

'29

'31

'33

* Exclusive of unemployment compensation taxes and inclusive of local shares
SOURCE:- U. S. Treasury - Intergovernmental

294




Fiscal

Relations

'35

'37

'39 '40

Federal, state, and local. Obviously, wartime increases in Federal taxes since 1940 have depressed
the proportion represented by local levies. Nevertheless, they still represent an important part of
the total.
Thus, from its relation to total non-Federal revenues, particularly its dominance as a source of
local funds, it would seem that any relief or readjustment of the property tax would have to come principally by way of a redistribution of the property
tax burden over a broader segment of the population,
by the curtailment of exemptions, and possibly by
the introduction of new local taxes.
Prominence of Real Estate Taxes
Since the general property tax in many instances
includes assessments on personal and other property
in addition to real estate, what proportion of total
assessments was represented by t h a t amount levied
on real estate? According to the property taxation
studies conducted by the Bureau of the Census, the
burden borne by real estate is equivalent to about
three-fourths of the combined total assessed by State
and local taxing jurisdictions for the general property
levy. Drs. Hansen and Perloff in their recent study
of State and local finance observe that "about onethird to one-half of all real-property taxes are
imposed on residential real estate/' 1
"Real estate, exclusive of that taxed as part of the
1
mixed property/ was called upon to .pay only onehalf of all property taxes levied for State purposes
for 1940, although this type of property comprised
three-fourths of the total value of property taxed by
the States. Property tax levies for the 44 State
governments levying such taxes for 1940, the latest
year for which data are available, totaled $255.1
million, of which $128.5 million, or 50.4 percent, was
levied on real property. For those 44 States, the
assessed valuation totaled $94.8 billion, of which
$69.6 billion, or 73.4 percent, was that of real property. Those figures indicate the relatively moderate
dependence by State governments on real property,
as compared with that on personal and mixed property as a source of revenue." 2
" T h e analysis of the data for cities over 100,000
population disclosed a result far different from that
of the State figures. The analysis of valuations and
property tax levies in the 92 cities in that census
i'Alvin H. Hansen and Harvey S. Perloff, "State and Local Finance in the
National Economy," 1944.
2 "Property Taxation 1941," U. S. Department of Commerce, Bureau of the
Census, September, 1942.

Fee/era/ Home Loan Bank Review

Opposition to A d Valorem Levy
I t is generally accepted that oppressive tax burdens may contribute to the destruction of real-estate
values and, in this way, to the spread of neighborhood blight. I t is also recognized that they may
effectively stifle home ownership, endanger home
debt and deter new home construction. I n fact,
a severe real-estate levy may inadvertently discourage the attraction of new business and outside
capital to a community, oppress local enterprise
and prevent healthy internal expansion. When such
conditions exist delinquencies naturally mount.
1
"Property Taxation 1941," U. S. Department of Commerce, Bureau of the
Census, September 1942.
2
Senate Document No. 69, 78th Congress, 1st Session, "Federal, State and
Local Government Fiscal Relations."

August 1944




Tax collections in the United States for selected
years, 1915-1941
[Dollar amounts are shown in millions]
T a x collections
Year
Total
1915....
1919
1922
1925
1928 _

- _ . . $2,311
7,023
7,657
8,082
9,591
10, 594
9,564
8, 307
7,719
,
9,029
. .
10, 061
__
10, 776
12,834
14,125
13,620
14,118
17, 884

1933
1934
1935..
1936...
1937
1938
1939
1940
1941

Federal 2 S t a t e 3
$625
4,034
3, 553
2,966
3,194
3,468
2,717
1,788
1,785
2,890
3, 545
3,845
5,028
5,934
5,412
5, 566
7, 671

$368
594
947
1,305
1,756
2,108
2,042
1,862
1,724
1,979
2,217
2,641
3,436
3,847
3,908
4,187
4,961

l

Percentage d i s t r i b u t i o n

Amount

!i

group involved more complex data, of course, than
that of the State figures because of the fact that upon
the valuations assessed within the cities levies are
made, in most instances, not only by the city corporation but also by the state and by one or more
independent, overlapping local units of government.
For city corporations only, real property represented
85.1 percent of the total assessed valuation, while
86.5 percent of all property taxes levied in 1940 were
imposed on real estate. Of a total tax levy for city
corporation purposes of $1,375.6 million, real property was levied upon for $1,190.6 million; and of a
total assessed valuation of $55.6 billion, $47.3 billion represented realty." l
Thus, it may be observed that local governments,
whose taxes vie with Federal revenues in importance,
rely heavily upon real property as an assessment
base. The possibilities of their being able to lighten
this load would seem remote, particularly in view of
the stringent financial condition in which many
municipal governments were placed prior to the war.
Although municipal finances have shown considerable improvement during the war, this condition is
probably due in large part to an accumulation of
deferred maintenance charges and not only to improved economic conditions. If this is the case, the
present situation is most likely a transitory one.
Furthermore, "narrow jurisdiction of the municipality makes it essential to depend on a relatively
immobile tax base for the major part of local revenues, and this points to the continuance of the largest
part of the tax burden on real estate. But there are
important possibilities of redistributing this burden
among individual owners of real estate and their
tenants." 2

Local
$1, 318
2,395
3,157
3,811
4,641
5,018
4,805
4,657
4,210
4,160
4,299
4,290
4,370
4,344
4,300
4,365
5,252

Federal
27.1
57.4
46.4
36.7
33.3
32.7
28.4
21.5
23.1
32.0
35.2
35.7
39.2
42.0
39.7
39.4
42.9

State
15.9
8.5
12.4
16.1
18.3
19.9
21.4
22.4
22.3
21.9
22.1
24.5
26.8
27.2
28.7
29.7
27.7

Local
57.0
34.1
41.2
47.2
48.4
47.4
50.2
56.1
54.6
46.1
42.7
39.8
34.0
30.8
31.6
30.9
29.4

Source: Senate Document No. 69, 78th Congress, 1st, Sessicn, "Federal, State
and Local Government Fiscal Relations."
1
Including payroll taxes.
2
Less refunds.
3
Including local shares.

Therefore it is to the common interest of local governments and individual citizens to assure an
equitable distribution of local public costs in such
manner as will neither impede local private development nor prove impractical from a tax collection
standpoint.
Two general systems for levying real-property
taxes have been developed: (1) the occupancy tax
which is employed in England, France and many
other countries and is based upon the value of
property actually in use, and (2) the ad valorem
levy, based upon the capitalized value of the property, which is the prevailing system in both Canada
and the United States. Under the less complicated
economies of the past, both of these systems proved
equally practical. However, opponents of the ad
valorem method advance the argument that under
conditions as they exist today this system of taxation is inadequate to provide the necessary revenue
without placing an undue burden on property owners
with no regard for their actual ability to pay. " T h e
widely prevailing notion that the general property
tax, except for new exemptions and limitations, is a
crystallized institution and fixed for all time should
be exploded."*
Opponents of the ad valorem levy on real estate
advance three major objections to the principle of
this tax: The first of these is that the base is too
1
Senate Document No. 69, 78th Congress, 1st Session, "Federal, State and
Local Fiscal Relations."

295

narrow. In other words, the tax rests upon a limited
number of parcels, thus making an increase in revenues from this source obtainable only by enlarging
the payments of property holders, or by eliminating
certain exemptions.
Second, as the burden is on ownership, except as it
is passed on to tenants in rents, the ad valorem levy
leaves many non-property holders in communities
comparatively free from bearing the burden of local
expenses. By this measure, it acts as a penalty on
home owners and curbs additional home purchase.
Third, the tax is regressive in that it falls the heaviest on those property holders who are the least able
to pay. I t has often been the practice to freeze
assessments in the older areas inhabited by the lower
income groups and to encourage new building for
higher income brackets by low assessments in outlying districts. Improved assessments rather than
exemptions would perhaps be the best solution to
remedy regressivity within the limitations of the ad
valorem system. The problem of regressivity, however, would seem to present grave difficulties under
any tax placed upon real estate, be it ad valorem or
occupancy, for among the lower income groups the
proportion of income which must be allotted to meet
housing costs is larger than is usually found in the
higher brackets.
In its recent report, the Treasury Committee on
Federal, State and Local Government Fiscal Relations concluded that any reshaping of local revenue
systems should provide for the tapping of new sources
which would enable localities to tax their own resources without overlapping Federal and state taxes,
and thus free themselves from continued dependence
upon central governments for aid. Such a general
overhauling of the systems, it was said, should take
into consideration an extension of the base coverage
to include all or a vast majority of the interested
citizenry without regressive effects. To accomplish
this extremely difficult assignment it was suggested
that the property tax be broken down into its component parts. The Committee advanced the idea
that the uniform application of present property
taxes to all owners on the basis of holdings be abandoned and that the entire structure be recast along
one or a combination of lines. For example, a
collection from landlords in compensation for local
benefits to property could be taken, while another
levy on occupants based on the rental value of the
property could be employed as either a replacement
or a supplement to the real property tax. Thus,
while an ad valorem levy might continue, a general
296




broadening of the tax base through a supplementation
by the introduction of an occupancy tax might allow
readjustments in excessive ad valorem assessments
without any embarrassment to the local fiscal
authorities.
The Proposed Occupancy Tax
Proponents of the occupancy levy submit four
general advantages of this system over the ad
valorem method: (1) it is based on current income
rather than on a flat projection of future earning
value, and would, therefore, spread the burden over
real-estate parcels in a different manner than is provided by a tax upon capitalized values; (2) unused
properties would be exempt from the occupancy levy,
except as it might be modified to avert land speculation; (3) by expanding the tax base, local revenues
would be more widely drawn from residents, thus
alleviating the heavy reliance upon real estate
owners; and (4) through a graduation of the tax
scale, allowances could be made for ability to pay, by
taking into account family size and other qualifyingfactors. Thus, it is argued, a progressive rather than
a regressive rate could be imposed.
Naturally, there are disadvantages to the occupancy tax just as there are to other types of levies.
One of the most important is that greater cyclical
fluctuations in revenue would probably result.
This matter, offhand, would seem to be an advantage
to the taxpayer although an immediate obstacle to
the taxing authority involved. However, to a certain extent, this restriction to its value is not
entirely convincing for it seems highly improbable
that local revenues ever will be in a position to cope
with major cyclical fluctuations. This would seem
to be more properly a matter of Federal fiscal responsibility. Although real-property tax assessments under the ad valorem system represent a
higher proportion of the total for the general property tax in times of economic stringency, the ratio of
delinquencies tends to increase in such periods,
reflecting a spreading inability of property owners to
meet their tax obligations.
Another disadvantage or limitation of the tax on
occupancy is that it would not truly represent a
shifting of the burden from real estate and that the
weight of such a levy would continue to fall on
housing, a field in which both national and local
efforts are being made to raise standards. Be this
the case, this objection might be overcome, if the
problem of regressivity could be solved, for this
would relieve the burden on low-cost housing. Of
Federal Home Loan Bank Review

course, in those communities with a disproportionate
amount of low-cost housing and with few expectations for improvement in the distribution of households by income group, the occupancy tax may offer
less in the way of a solution than it would in localities
with a broader diversification of rental values and
incomes. Plans to eliminate regressivity in taxes
generally presuppose these diversities.
The third attack against the occupancy tax applies
only to those cases in which a joint utilization of the
occupancy and ad valorem levies would be made.
Here it is contended that it would be necessary to
have two valuations, one for each tax, and that the
problem, is further complicated by the application of
the use tax to owner-occupied units. Also, it is
obvious that periodic adjustment would be needed to
maintain a reasonable relationship between the actual
and assessed rental values.
Almost all of these arguments, both for and against
the occupancy tax, bear only hypothetical weight,
for the system has yet to be tried under conditions
prevailing in this country. However, an examination of its history in Britain may yield some clues as
to its advantages and shortcomings. Although the
real estate situation in the two nations is not by any
means comparable, nor for that matter are the taxation problems, some additional information may lie
in these very differences.
British Experience
There are two types of taxes levied on property in
England. Taxation by the central government is
collected from the owners of lands, tenements and
hereditaments on the basis of income from ownership,
while that levied by local governments is collected
from occupants on the basis of rental or use value.
The income upon which the central government tax
is based is more or less fictional, being determined by
appraisals every five years. The local occupancy
taxes, or rates as they are called, bear the closer
resemblance to the proposed levies here under consideration.
Local rates in Britain, like the central taxes, are
based upon the five-year appraisals of rental value,
a figure which in many cases is determined by judgment rather than formula, and which constitutes the
taxable value. With certain exceptions each occupant, whether he be owner or tenant, is liable for the
payment of the rates based on those values so long as
he is legally in possession of the property.
To many, this system may seem to afford an exceedingly wide margin for opinion with jrespeet to
August 1944




values and it might appear that cyclical fluctuations
as reflected in appraisals and occupancy would cause
a lack of stability in local revenues. Both of these
objections are minimized, however, by the far greater
stability of real-estate values in Britain than in the
United States. This difference has led some authorities
to discount the feasibility of such a tax in this country.
By no means is the British tax without flaw.
Occupancy in itself, its opponents argue, is no valid
measure of ability to pay while it is also claimed that
both ratable values per capita and rates paid vary
greatly by locality. In addition, it is contended that
rates are regressive and bear heavily upon the poorer
groups. This is an interesting argument in view of
the contention by American tax authorities that the
introduction of an occupancy tax would alleviate
regressive tax burdens among property owners.
In weighing these complaints against the local
English rate on occupancy, it must be recalled that
this system has been built up by a gradual process of
accretion over many years just as have our ad
valorem levies. Quite naturally, some maladjustments are bound to exist as piece-meal remedies are
applied. On the other hand, if a state government
in this country were to authorize a local occupancy
levy, it would be possible to consider the whole problem in its broadest aspects and develop a system
adapted to our present needs. The question of
whether regressivity could be entirely eliminated
would seem to be extremely problematical. A
graduation of tax liability, however, should minimize
this tendency. Naturally, any taxing system which
might be devised now might well deserve a general
overhauling in the future to preserve its conformity
with the needs of the times.
Conclusions
British experience with occupancy rates demonstrates that, although the system in itself does not
constitute a cure-all, it does provide latitude
within which many communities may be able to
work out the answers to their own individual problems. I t would seem that these solutions must
vary to conform with the potentialities of the particular taxing jurisdiction and that their successful
application is not only contingent upon the proper
adaptation of the taxing system selected, but likewise upon the quality of administration provided.
The assurance of a progressive tax program, however, must rest in that flexibility of the basic law which
will permit modificationsjas circumstances demand
them.
297

MEMBER ASSOCIATIONS SHOWED FURTHER
IMPROVEMENT LAST YEAR
The combined statement of condition of all savings and loan members
of the Bank System on December 31, 1943, provides an opportunity
to take stock of the results of last year9s operations. Continued
strengthening of the liquidity position and an accelerated increase in
private capital stand out in the record.
•

T H E second year of wartime operations of savings and loan members proved to be one of continued improvement in the strong position attained
during 1942. The pattern set following our entry
into the war—improved liquidity and relatively meager lending opportunities—was again apparent with
only minor variations. Both total assets and private
capital increased appreciably above the previous
year's record peaks. Although the mortgage-loan
account showed only a slight gain, this is in itself
something of an accomplishment under the conditions prevailing in 1943. General reserves and undivided profits at the close of the year had advanced
to almost six times the value of institutionally
owned real estate.
Total assets of all member savings and loan associtions exceeded $5,538,000,000 at the close of 1943
following a gain of over $513,000,000, or 10.2 percent.
The dollar volume of this gain was more than twice as
great as that shown in 1942 when a 4.7-percent increase raised assets above the $5 billion mark for the
first time. The outstanding character of this 1943
increase is evident when it is noted that the last two
pre-war gains amounted to only 9 percent of the thensmaller assets. Last year's net decline of 36 in the
number of member associations, coupled with the
advance in assets, resulted in increased average assets
for the remaining 3,701 associations—$1,497,000 in
1943 in comparison with $1,345,000 and $1,272,000
in the two preceding years.

68-percent advance registered during the first war
year. These two asset items now represent 20.3
percent of aggregate resources of the reporting
member associations compared with 11.9 percent in
1942 and 7.4 percent the prior year.
The composition of these liquid assets as between
cash and Government obligations during last year
demonstrates the participation by member associations in the Government's war-financing program.
As of December 31, 1943, Government-bond holdings
amounted to approximately $739,000,000 in comparison with $260,000,000 in 1942—an increase of
$479,000,000. This brought the liquid assets to a
volume almost three times as great as in 1942, and
over nine times the 1941 amount. Cash on hand and
in banks, on the other hand, increased only $51,000,000 (15.2 percent), amounting to $387,000,000 at
the year-end. The Government-bond portfolio at
the close of 1943 represented 13.34 percent of total
assets compared with 5.17 percent in 1942; cash
holdings amounted to 6.99 percent in 1943 and 6.69
percent the previous year.
The relationship of cash and Government-bond
holdings to the volume of private repurchasable
PERCENTAGE CHANGES IN PRINCIPAL
BALANCE SHEET ITEMS
MEMBER SAVINGS AND LOAN ASSOCIATIONS
YEAR END 1943 COMPARED WITH YEAR END 1948
PERCENT
40
30

50

298




0

»• 10

PERCENT
20

INCREASE
30
40

50

1

Liquid Assets
During the last several years savings and loan
members of the Bank System have increased their
liquid assets to an unprecedented peak. During
1943 further substantial gains were made above the
already high level. An addition of almost $530,000,000 raised the total of combined cash and Government-bond accounts to approximately $1,126,000,000.
This gain of 88.9 percent considerably exceeded the

DECREASE
20
10 •<

160.4

58.T

04VI3ION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION

Fee/era/ Home Loan Bank Review

capital provides another pertinent measure of the
liquidity position. The combined total of these
accounts in 1943 was equal to 24.0 percent of total
private capital compared with only 14.5 percent the
previous year and 9.4 percent in 1941.
The high level of liquidity evident among member
associations was achieved at the same time that they
were reducing their over-all indebtedness. While
Federal Home Loan Bank advances were cut by
slightly more than $23,000,000, "other borrowed
money" increased approximately $7,600,000. This
is one of the few instances in which a 1942 trend was
reversed. That year showed a $10,000,000 decline in
" other borrowed money." Funds in the amount of
$99,000,000 were used during 1943 to repurchase
HOLC and U.S. Treasury investments in the capital
of member associations. At the end of last year, the
$69,000,000 outstanding in these investments represented only 1.3 percent of total resources compared with 3.3 percent in 1942.
Trends of selected balance-sheet items in relation
to total assets
Item

First mortgage loans
Real-estate owned
Real-estate contracts
Cash a n d U. S. Governm e n t obligations

1943

1942

1941

Pet.
73. 08
1. 26
2. 55

Pet.
79.39
2.48
3.23

Pet.
81. 68
3. 95
3. 62

20. 33

11. 86

7.38

1940
Pet.
79.25
6. 80
3.79
6. 53

A greatly improved liquidity position was evident
in all Bank Districts during 1943. The most outstanding gain was recorded in the Winston-Salem
region which showed an advance of 114.9 percent.
The New York and Pittsburgh areas also more than
doubled their holdings of cash and Government
obligations. In both dollar volume and percentage
increase, the Topeka District registered the smallest
gains with an advance of slightly less than $14,000,000, or 61.5 percent. Cincinnati recorded the
greatest dollar increase—$119,300,000.
Owned Real Estate
I t has been customary recently to talk about the
"insignificant proportions" to which the real-estate
owned account has been reduced. I t would seem
that the vanishing point is rapidly being approached
after a 44.3-percent decline during 1943 following
reductions of 34 and 37 percent in the two preceding
years. Institutionally owned real estate at the end
of December 1943 amounted to less than $70,000,000
August 1944
601183—44




and represented only 1.3 percent of assets compared
with 2.5 percent and 4.0 percent in 1942 and 1941.
All Bank Districts shared in the reduction of
real-estate owned, decreases ranging from 56 percent
in Winston-Salem to 38 percent in Chicago and
Cincinnati. In Winston-Salem, where this account
has long been maintained at a low level, in 1943 it
amounted to only 0.2 percent of total assets. Almost
half of the institutionally owned real estate is concentrated in two Bank Districts—Cincinnati and
New York. The latter region was alone in showing
an amount equal to as much as 2 percent of assets.
Percentage distribution of balance-sheet items for
all savings and loan members of the Federal
Home Loan Bank System, 1943 and 1942

Balance-sheet i t e m

All savings
a n d loan
members
1943

1942

Federal

1943

1942

Insured
State

1943

1942

N u m b e r of m e m b e r institutions

Uninsured
State

1943

1,261

1942

1,346

ASSETS
PerF i r s t m o r t g a g e loans (inc. cent
interest a n d advances) _ - 73. 081
Jr. m o r t g a g e liens (inc.
interest a n d advances) _ _ 0.03
O t h e r loans (inc. share
loans)
0.23
Real estate sold on contract
2. 55
R e a l estate o w n e d
].26|
Federal H o m e Loan Bank
stock
1.01
U . S. G o v e r n m e n t obligations
13.34
O t h e r i n v e s t m e n t s (inc.
accrued interest)
0.45|
C a s h on h a n d a n d in b a n k s .
6.
Office building (net)
0.851
F u r n i t u r e , fixtures, a n d
e q u i p m e n t (net)
0.09
O t h e r assests
0.12
Total

assets

PerPerPercent
cent
cent
79. 39 73. 421

PerPerPerPercent
cent
cent
cent
71.16] 76. 92| 74.60) 79.11

0.04

0.02|

0.02

0.03

0.05

0.05

0.06

0.34

0.15

0.18

0.23

0.36!

0.38

0.59

3.23

2.00
0.82)

2.52|
1.61

3.30

4.34
2.74

2.76
1.93

3.34
3.68

0.96|

0.91

0.90

2.48|
1.08

1.07

14.34

5.19]

1.40
0.99

0.

5.61 11.48|

4.71
0.61
5.78
0.92
0.06
0.24

13. 29

5.17
0.461 0.13
6.
7.021
0. 94 0.82|

0.17
7.09|
0.91

0.84

7.671

0.
0.63
6.95 6.16)
1. 02) 0.85

0.12
0.15

0.15
0.10

0.
0.10|
0.11

0.13
0.13

0.11
0.091

0.06
0.19

100.00 100. 00 100. 00 100.00 100.00 100.00

LIABILITIES AND
CAPITAL
U . S. G o v e r n m e n t investm e n t (shares a n d deposits)
P r i v a t e repurchasable
shares
M o r t g a g e pledged shares,..
Deposits and investment
certificates
A d v a n c e s from F e d e r a l
Home Loan Banks
Other borrowed money
L o a n s in process
O t h e r liabilities
Advance payments by
borrowers
Permanent
reserve
or
g u a r a n t y stock
Deferred c r e d i t s to future
operations
Specific reserves
General reserves
B o n u s on shares
U n d i v i d e d profits

0.96

2.36

77. 83 74.55 86.39 82.07 66. 82 64.17 73. 95 72.11
1. 53j 6.55 7.16
2.02 2.50 0.17 0.25 1.15
0.00

0.01 17. 42 17. 28

2. 84 J 3.65

1.95
0.34
0.
0.381

2.61
0.23
0.59|
0.43

0.20
0.
0.83 0.691
0.361 0.45|

0.47

0.45

0.48

0.46)

0.51

0.23
0.14
4.94
0.02
2.46

0.301
0.17|
4.91
0.01
2.421

T o t a l liabilities a n d
capital
100.00

0.20
0.14
3.76
0.02
2.27

0.47

0.26
0.181
3.65
0.02
2.17

100.00 100.00

1.66
0.22
0.86|
0.48

8.57

2.39
0.23
0. 69

0.5'
0.26
0.19
0.541 0.31

1.10
0.29
0.32
0.30

0. 52| 0.51

0.40)

0.35

1.38

1.64

0.30

0.28

0.23
0.14
5.82|
0.01
2.33

0.35
0.16

0.27
0.12)
6.20
0.01
2.98

0.31
0.15
6.20
0.00
2.85

5.74J
0.01
2.40]

100.00 100. 00

299
2

Combined statement of condition for all savings and loan members
NOTE:
Balance

sheet

item

Combined

Number of members

Percentage figures show the ratio

New York

Pittsburgh

Wins t o n - S a lerr

3,701
ASSETS

F i r a t mortgage loans (including interest and advances)Junior mortgage Hens (including intereat and advances)
Other loans (including share loans)
Real estate sold on contract
Real estate owned
Federal Home Loan Bank Stock
U.S. Government obligations

——

Other investments (Including accrued interest)
Cash on hand and in banks
Office building (net)
Furniture, f i x t u r e s , and equipment (net)
Other assets

Total assets

-

LIABILITIES

Private repurchasable shares
Mortgage-pledged shares
Deposits and investment c e r t i f i c a t e s
Advances from Federal Home Loan Banks
Other borrowed money
Loans in process
Advance payments by borrowers
Other l i a b i l i t i e s
Permanent reserve or guaranty stock
Deferred credits to future operations
Specif ic reserves
General reserves
Bonus on shares—.
Undivided profits

Total l i a b i l i t i e s and capital




$488,839,528
77.99%
7,286
0.00%
2,584,383
0.41%
435,335
0.07$
7,633,818
1.22%
5,227,965
0.83%
83,557,341
13.33%
3, 157,387
0.50%
29,538,269
4.71%
3,472,989
0.56%
371,642
0.06%
1,971,604
0.32%

$418,273,441
72.95%
180,207
0.03%
1,556,831
0.27%
I I , 125,738
1.94%
15,651,671
2.73%
6,059,500
1.06%
65,576,21 I
11.44%
7, 130, 167
1.24%
41,526,923
7.24%
4,621,325
0.81%
903,597
0. 16%
733,665
0.13%

$26 1,323,008
79.14%
1,043,495
0.32%
1,108,284
0.34%
5,320,529
J.6 1%
5,306,844
1.61%
3,554,000
1.07%
26,970,260
8.17%
233,245
0.07%
22, 747, 402
6.89%
1,847,975
0.56%
377,625
0.11%
372,752
0.11%

$516,696,598
80.06%
43,615
0.01%
1,522,172
0.24%
2,368,241
0.37%
949,730
0.15%
5,858,000 '
0.90%
76,453,597
11.85%
981,922
0.15%
35,452,877
5.49%
4,232,516
0.65%
454,819
0.07%
405,987
0.06%

$5,538,599,932
100.00%

$626,797,547
100.00%

$573,339,276
100.00%

$330,205,419
100.00%

$645,420,074
100.00%

$

2,052,200
0.33%
521,287,259
83.17%
41,938,661
6.69%

$ 16,645,300
2.90%
473,956,688
82.67%
16,001,249
2.79%

$

$

8,872,710
1.41%
3,242,921
0.52%
1,867,936
0.30%
3,307,833
0.53%
1,824,273
0.29%

16,770,055
2.92%
1,849,923
0.32%
1,515,244
0.27%
2,380,484
0.42%
1,277,670
0.22%

11,1 18,529
3.37%
756,366
0.23%
1,356,378
0.41%
2, 074, 403
0.63%
1,477,562
0.45%

92,146
0.01%
369,663
0.06%
24,534,456
3.91%
98,067
0.02%
17,309,422
2.76%

1,014,875
0.18%
999,719
0 . 17%
25,078,768
4,38%347,047
0.06%
15,502,254
2.70%

365,042
0.11%
870,412
0.26%
20,540,955
6.22%
22, 160
0.01%
4,542,475
1.37%

7,251,601
1.12%
5, 158,162
0.80%
3,028,405
0.47%
2,036,658
0.32%
2,246,335
0.35%
6,996
0.00%
939,045
0. 15%
872,506
0.13%
28,691,759
4.45%
24,068
0.00%
17,890,474
2.77%

$626,797,547
100.00%

$573,339,276
100.00%

$330,205,419
100.00%

$645,420,074
100.00%

AND CAPITAL

U. S. Government investment (shares and deposits)

300

$4,01*7,692,903
73.08%
1,645,491
0.03%
12,617,102
0.23%
141,422,364
2.55%
69,511,545
1.26%
56,023,845
1.01%
738,647,972
13.34%
2 5 , 0 6 9 , 9 17
0.45%
387,228,608
6.99%
46,850,532
0.85%
5,215,832
0.09%
6,673,821
0.12%

-

69,325,700
1.25%
\, 3 10, 547, 548
77.83%
112,056,662
2.02%
378, 554, 972
6.83%
107,869,471
1.95%
19, 148,012
0.34%
37,508,478
0.68%
26,082,132
0.47%
21,200,180
0.38%
25,508,970
0.46%
12,513,147
0.23%
7,479,609
0. 14%
273,591,211
4.94%
877, 122
0.02%
136,336,718
2.46%
$5, 538,599,932
100.00%

1,354,300
0.41%
269, 141,442
81.51%
16,585,395
5.02%

4,658,850
0.72%
558,286,428
86.50%
14,328,787
2.22%

Federal Home Loan Bank Review

of the Federal Home Loan Bank System, December 3 1 , 1943
of the items listed to total assets.

210

128

165

$211,673,067
79.79%
35,338
0.02%
722,728
0.27%
2,238,138
0.84%
1,954,779
0.74%
2,446,500
0.92%
2 5 , 8 4 9 , 163
9.74%
2,178,294
0.82%
16,237,907
6.12%
1,477,289
0.56%
225,112
0.09%
239,465
0.09% .

$146,325,807
72.67%
1,463
0.00%
314,525
0.16%
9,771,278
4.85%
3,230,932
1.6 1%
1,956,000
0.97%
24,445,663
12.14%
589,785
0.29%
11,607,266
5.77%
2,746,954
1.36%
205,513
0.10%
157,373
0.08%

$137,699,159
60.92%
16,945
0.01%
424,558
0.19%
14,540,871
6.43%
830,012
0.37%
1,666,780
0.74%
47,864,430
21.18%
1,840,659
0.81%
18,681,769
8.26%
2,088,755
0.92%
230,990
0.10%
146,969
0.07%

$329,457,005
78.00%
113,017
0.03%
478, 147
0.11%
4,178,999
0.99%
2,938,800
0.70%
3,924,100
0.93%
46,914,296
11.11%
621,165
0.15%
29,241,087
6.92%
3,470,384
0.82%
438,049
0.10%
606,007
0.14%

$295,643,935
100.00%

$265,277,780
100.00%

$201,352,559
100.00%

$226,031,897
100.00%

$422,381,056
100.00%

$

$

$

$

$

Chicago

563

220

454

$717,706,997
68.01%
121,759
0.0 1%
742,842
0.07%
17,656,363
1.67%
15,719,755
1.49%
9,481,700
0.90%
183,214,454
17.36%
5,329,509
0.51%
89,493,661
8.48%
14,434,369
1.37%
805,835
0.08%
552,687

$225,567,906
61.07%
56,624
0.02%
438,679
0.12%
34,202,602
9.26%
2,801,517
0.76%
6,066,400
1.64%
64,579,662
17.48%
607,172
0 . 16%
29,358,323
7.95%
4,817,298
1.31%
385,997
0.10%
482,992
0.13%

$375,53 1,130
71.19%
14,817
0.00%
2,109,031
0.40%
32,777,711
6.21%
9,470,272
1.80%
5,914,400
1.12%
53,478,142
10.14%
1,570,658
0.30%
42,696,540
8.09%
2,514,667
0.48%
588, 162
0.11%
859,756
0.16%

$218,599,257
73.94%
10,925
0.00%
614,922
0.21%
6,806,559
2.30%
3,023,415
1.02%
3,868,500
1.31%
39,744,753
13.44%
829,954
0.28%
20,646,584
6.99%
1,126,011
0.38%
228,49 1
0.08%
144,564
0.05%

$1,055,259,931
100.00%

$369,365, 172
100.00%

$527,525,286
100.00%

$

$

$

0.05%

8,769,550
0.83%
662,356,384
62.77%
7,201,493
0.68%
249,022,746
23.60%
9,430,839
0.89%
1,294,46 1
0.12%
4,960,453
0.47%
3,529,827
0.34%
3,569,791
0.34%
15,315,253
1.45%
3,547,154
0.34%
682,216
0.06%
54,438,253
5.16%
7,785
0.00%
31,133,726
2.95%

$1,055,259,931
100.00%

August 1944




3,637,900
0.98%
317,894,005
86.07%
1,148,690
0.31%

-

10,302,592
2.79%
1,034,000
0.28%
J,680,919
0.46%
1,191,048
0.32%1,001,538
0.27%
60,000
0.02%
2,157,376
0.58%
856,507
0.23%
17, 791,980
4.81%
178,645
0.05%
10,469,972
2.83%
$369,365,172
100.00.%

7,077,700
1.34%
439,632,956
83.34%
7,331,797
1 .39%

Des

Moines

Little

240

2,922,600
0.99%
261,340,051
88.40%
2,640,956
0.89%

Rock

271

2,526,100
0.95%
223,727,589
84.34%
1,478,529
0.56%

3,073,900
1.53%
170,993,010
84.92%
1,996,380
0.99%

1,974,463
0.37%
757,075
0.14%
33,525,773
6.36%
65,798
0.01%
8,212,976
1.56%

7,757,782
2.62%
1,455,000
0.49%
1,431,181
0.48%
719,101
0.24%
1,033,304
0.35%
19,000
0.01%
447,688
0.15%
259,634
0.09%
11,495,216
3.89%
48,923
0.02%
4,073,399
1.38%

3,858,137
1.45%
420,000
0.16%
2,604,909
0.98%
1,951,902
0.74%
2,561,632
0.96%
503,200
0.19%
194,944
0.07%
420,943
0.16%
18,617,722
7.02%
43,671
0.02%
6,368,502
2.40%

2,333,607
1.16%
328,312
0.16%
1,500,142
0.74%
1,427,291
0.71%
992, 702
0.49%
715,728
0.36%
475,087
0.24%
353,746
0.18%
12,499,584
6.21%
21,917
0.01%
4,641,153
2.30%

6,821,200
3.02%
197,244,721
87.26%
451,994
0.20%
7,059
0.00%
1,710,764
0.76%
1,149,570
0.51%
2,840,621
1.26%
959,382
0.42%
450,326
0.20%
1,107,291
0.49%
502,646
0.22%
263,584
0.12%
8,417,881
3.72%
13,938
0.01%
4,090,920
1.81%

$527,525,285
100.00%

$295,643,935
100.00%

$265,277,780
100.00%

$201,352,559
100.00%

$226,031,897
100.00%

-

13,088,784
2.48%
992,420
0.19%
5,802,971
1.10%
5,593,501
1.06%
3,469,072
0.66%

-

Angeles

port land

Indianapolis

1

Los

Topelca

Cincinnati

-

-

-

9,786,100
2,32%
214,687,015
50.83%
952,731
0.22%
129,525, 167
30.66%
15,374,071
3.64%
1,466,877
0.35%
8,919,319
2.11%
910,702
0.22%
1,295,975
0.31%
7,781,402
1.84%
802,681
0.19%
773,604
0.18%
17,998,864
4.26%
5,103
0.00%
12,101,445
2.87%

$422,381,056
100.00%

301

For the second consecutive year, real-estate contracts declined during 1943. The 12.9-percent reduction last year brought this asset item down to
$141,000,000, approximately twice the book value ol
real-estate owned.

Trends of selected balance-sheet items in relation
to total liabilities and capital
Item

1943

1942

1941

1940

Mortgage-Loan Accounts

Private repurchasable capital
Government share investments _
Pledged shares
F H L B advances a n d other
borrowed money
General reserves a n d undivided profits

Pet.
77.83

Pet.
74. 55

Pet.
71.20

Pet.
69.57

1. 25
2.02

3. 34
2. 50

4.08
2. 73

5. 00
3. 31

2. 29

2.84

4. 99

4.92

7.40

7.28

6. 84

6. 89

The chief casualty of wartime operation has been
the mortgage-loan account which again experienced
the smallest percentage increase of any principal
asset item. During 1943, first mortgage loans outstanding advanced only $58,000,000, or 1.5 percent,
to a total of $4,048,000,000. This increase, while
only fractionally less than the 1942 gain, compares
unfavorably with the pre-war advances of 12 percent
each in 1941 and 1940. The 10-percent asset increase together with this small advance in mortgageloan accounts brought the ratio of mortgages to assets
down to 73.1 percent compared with 79.4 and 81.7
percent in the two preceding years.
The largest percentage increase in mortgage-loan
accounts (8.2) was recorded in the Los Angeles Bank
District, with Pittsburgh (6.3) second. New York
and Chicago were the only other regions to show
as much as a 3-percent improvement, while three
areas—Winston-Salem, C i n c i n n a t i a n d Little
Rock-—registered small declines.
Net additions to the loan balance in 1943 were
slightly less than those recorded in 1942. Last year,
although the volume of loans made by all member
associations exceeded $1,050,000,000, rapid repayment of the mortgage debt and loan refinancing resulted in a net gain in the loan balance equal to only
7 percent of the dollar amount of the loans made.
In 1942 the corresponding figure was 8.5 percent.
This is in marked contrast to the pre-war years of
1941 and 1940 when one-third and two-fifths, respectively, of the new mortgages appeared as net
additions to outstanding loans.

Increased investments of private capital were characteristic of all Bank Districts, the gains ranging
from 6.0 percent in Little Rock to 24.8 in Portland.
Member associations each held an average of approximately $1,267,000, a gain of almost $171,000 over
the average of the previous year.
These large investments of private capital coupled
with heavy repurchases of Government-owned shares
resulted in a substantial change in the ratio of these
two types of funds. At the close of 1943, over $67
of private money was held for every $1 of Government capital compared with ratios of 24 to 1 in 1942
and 19 to 1 the prior year.
Mortgage-pledged shares declined 10.8 percent
from $125,682,427 to $112,056,662 and now account
for 2.02 percent of gross assets.
Borrowed Money
The downward trend in F H L Bank advances that
has continued throughout the war more than offset
the 1943 increase in "other borrowed money". As a
result, the combined total of these two accounts
showed a drop of $16,000,000, or 11.0 percent. The
total of $127,000,000 represented only 2.3 percent of
aggregate resources in 1943.
Other Liability Items

Share Accounts
The influx of private capita] into member associations continued at an unparalleled rate during 1943.
A net of over $592,000,000 in private repurchasable
shares, deposits, and investment certificates was
added to these accounts bringing them to a total of
$4,689,000,000. This 14.4-percent increase was well
in excess of the gains of 9.3 and 11 percent, respectively, registered in 1942 and 1941. Total private
capital of all member associations now represents
84.7 percent of aggregate resources compared with
81.5 and 78.1 percent in the two preceding years.
302




The extremely high rate of advance payments made
by borrowers in 1942 was reduced somewhat last year.
An increase of over $3,600,000 in this account was
registered in 1943—a gain of 16.2 percent in contrast
to the 27.4-percent rise in the previous year. The
total accumulation of funds for this purpose now
amounts to more than $26,000,000.
The 1942 decline in the loans-in-process account
was reversed in 1943 when the balance increased by
$7,900,000, or 26.9 percent, and stood at $37,500,000
at the year-end. This is in contrast to a 56-percent
decline in 1942.
Federal Home Loan Bank Review

Reserves and Undivided Profits

The reserve position of member associations continued to improve in 1943. The general reserve and
undivided profits accounts showed an increase of
slightly over $41,500,000 which is a larger dollar
gain than that recorded in the previous year but a
little less percentagewise—11.3 compared with 12.5
percent in 1942. These two accounts now total
just under $410,000,000 and make up 7.4 percent of
aggregate resources. This reserve-to-asset ratio is
only fractionally better than the 1942 relationship
but still represents the greatest proportion held in
these accounts of all member associations for a
number of years.
These protective accounts now represent an
amount almost six times as large as the property on
the books of the member associations. Last year
reserves and surplus of $5.90 existed for each bookvalue dollar of real estate owned. In 1942 the ratio
was $2.95.

Amendment to Rules and Regulations
FHLBA
Bulletin No. 36

AMENDMENT TO RULES AND REGULATIONS
FOR FEDERAL SAVINGS AND LOAN SYSTEM REPEALING THE PROVISION REGARDING CONVERSIONS INTO STATE-CHARTERED INSTITUTIONS.

(Approved and effective July 22, 1944.)
On July 22 an amendment was adopted repealing
Section 204.3 of the Rules and Regulations for the Federal Savings and Loan System which was originally
placed in the Regulations as a means of implementing
then-pending legislation to authorize the direct
conversion of Federal savings and loan associations
to State charter. The legislation to validate it has
not been passed and the section is therefore of no
force or effect.
The above amendment is deemed to be of an
emergency character and became effective on July 22
when it was filed with the Federal Register.
To the Members of the Bank System:
The membership of the Federal Home Loan Bank
System cannot obtain proper credit for its efforts in the
Government bond drive unless you report your sales
and purchases regularly each month.
Please forward your monthly report of sales and
purchases of Government bonds and war stamps to
your District Bank promptly.

August 1944
601183—44




W a r Bond Sales
•

The Treasury Department has announced that
the Fifth War Loan yielded an unprecedented
total of $20,639,000,000—the corporate quota of
$10,000,000,000 being exceeded by $4,309,000,000
and the goal of $6,000,000,000 for individuals
being oversubscribed by $330,000,000. In the five
war loan drives conducted by the Treasury an aggregate quota of $67,000,000,000 has been established,
while sales during these drives have reached a cumulative total of $87,700,000,000, bringing gross oversubscriptions to $20,700,000,000, or more than 29
percent greater than the goal esta-blished for the Fifth
War Loan. As previously announced, no June
Honor Roll is published, since savings and loan
activities during the entire Drive will be included in
the next report which will appear in the September
issue.
Those readers who have consistently followed the
monthly announcements of purchases and sales of
these securities by savings and loan associations
may have already observed a certain downward
trend in the volume of this business by savings and
loans during the intervals between drives. As we
begin another "interval," it seems appropriate to
call attention to this tendency in order that associations, being forewarned, may also be forearmed.
For illustration of this trend, an examination of
the record between the ending of the Fourth War
Loan in February 1944, and the beginning of the
Fifth War Loan in June shows that during April
1944 sales by savings and loan associations totaled
$12,924,000, having fallen off by more than 34
percent from the March level of $19,617,000. April
purchases by these institutions amounted to $16,404,000, or over 35 percent less than the $25,312,000
reported for the first full month following the Fourth
Drive. This trend continued through May, although
the rate of decline slackened considerably for sales
which were about 9.5 percent less than in April.
Purchases, however, continued their rapid fall,
amounting to about 33 percent less, probably reflecting in part deferred activity in anticipation of the
Fifth War Loan.
In behalf of the war effort, savings and loan
associations are urged to hold the line during the
present interval between drives, and particularly to
maintain their high volume of sales of bonds and
stamps to individuals.
303

3

RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS

1935-1939= 100

BY YEARS

220

BY MONTHS
220

|
I
I
1
1
1
!
ADJUSTED FOR SEASONAL VARIATION

200

CONSTRUCTIOi v^,
/PRIVATE
1 8i 2 FAMILY DWELL. UNITS

180

\

140

y
• (FED. HOME LOAN BANK ADM

V

v

160
I 40
120

v..-

^

80

y i

•

>

-.-"

60

^J^

M
NUhrMnm

40

\
F(
1RECL0SURES
(FED.

20

fNONFARM

0
140

...

RENTS

120

f"(U. S

I I

80

1!

M i l !

M i l

l

BUILDING MATERIAL

PRICES^..

1 1 1 1 1 1 1 1 1

_._.-

100

RENTS'*

Set unit \IG A/WTF/ ?//W

PR/f JFS
(U. S. DEPT OF LABOR)
|

1

/

I

1

1

0

140
120

.*<
•••«•••

0

-^ ^'

^.^j

X.

40

FORECLOSURES

20
'.J |_. _i i,

60
300

180

•'

^SVGS. S LA/. LEND.

i

1

100

.

J

.

/

f

V

60

k

1 V*
1" S

100

\

80

) \ .>».

1

\

/

\ Tv. A .

1 V
f

200

1 1

\

y

120

I

1

\

100

1

/ PRIVATE
CONSTRUCTION
i\r
i a 2 FAMILY DWELL. UNITS

(FED. HOME LOAN BANK ADM.)
(U. S. DEPT OF LABOR RECORDS)

160

1

A

80

1 1

A

__LJ/J 1 1 1 i

1|

1 |

l |

1i

I I

1 i

1 i

V

V

1 |A | 1
V

60
300

ADJUSTED FOR SEASONAL VARIATION

280

280

260

260

240
/WD

220

/

f/AL PROJ OUCT / O N (FED RESE RVE BC)ARD)

200

240

r-^i

220
200

/
/

180

J
180

/
/ /
/

160
4

140

160
•

V MFG.

EMPLOYMENT

140

/

120

INUUmc m r IVICIV i
(U. S. DEPT. OF COMMERCE

/

r ^

100
^7

80
60

*

INDUSTRIAL PRODUCTION-*..^

1

is. >

>'.

A

'•a/i

' I K

'•*C

'•V7

F.H.L.B. A D V A N C E S O U T S T A N D I N G

$250 f

*"**•« —•«<
j

1 >44

I

100
^ M =•6.

<^*

^
'11

M,LL.ONS

120

.•
•^ ^>
\$r%

1942
V.

'1Q

«70

'/in

EMPLOYMENT

1 1 s^r
,
*Al

l

/LO

80
J M M

_L_L

1942

M,LL,ONSMORTGA6E RECORDINGS-ALL LENDERS
$500i
400

U_

i_L _U_
1943

J_L _L_L

I I

M SH-*

60

1944

-HOUSNEW RESIDENTIAL CONSTRUCTION

jrPRIVATE

I and 2 FAMILY

*,
-*^^"

300|
200

1945
1001
'.If: 1 '.

JAN. FEB.- MAR. APR. MAY

304




JUN JUL. AUG. SEP. OCT. NOV. DEC.

o' JAN.

v

* MULTI-FAMILY . / . W

MflfW,,i
FEB. MAR. APR. MAY

JUN. JUL. AUG. SEP OCT NOV. DEC.

Federal Home Loan Bank Review

•

•

•

SIX-MONTH SURVEY •

•

•

HIGHLIGHTS
/. Industrial production continued through June the gradual decline evident since February 1944.
II. Residential construction in urban areas during the first half of 1944 was about 50 percent less than in the corresponding six months
of 1943.
III. Recordings of nonfarm mortgages of $20,000
or less during the January-June period this year were at a level 28 percent above that
for the corresponding period of 1943.
A. All types of mortgagees except insurance companies participated in this rise. Only slight shifts occurred in the proportionate
shares of the various types of lenders.
B. Recordings by savings and loan associations during June showed a monthly gain of 4 percent.
IV. During the first half of the current year, foreclosures continued to decline, reaching a level 35 percent below that for the comparable
period of 1943.
V. Mortgage-lending activity in the January-June period this year exceeded that of any comparable period.
A. Home-purchase loans accounted for 89 percent of the 1944 gain while refinancing loans were the only ones to show a decline.
B. The volume of new loans made increased 6 percent from May to June reaching a new peak for the latter month.
VI. On June 30, 1944, total assets of the 12 Federal Home Loan Banks showed a 9-percent increase over the same time last year.
A. Insured associations showed substantial growth in assets and private repurchasable capital.
Similar gains were registered by
Federally chartered institutions.
B. Despite an increase in repurchases, the share capital in all savings and loan associations increased at a more rapid rate during
the first six months of this year than in the similar period of 1943 as the repurchase ratio dropped to 55 percent.
C. Liquid resources of all insured associations reached a new high of
$1,195,000,000.

ft ft ft
BUSINESS CONDITIONS-Gmdual
decline in industrial production
Indicating that a considerable part of the country's
industrial production for war is over the hump, a
gradual decline in output has been noticed since
February, 1944. As measured by the Federal Reserve Board's seasonally adjusted index (19351939 = 100), a peak of 247 was reached in October
and November 1943. A drop of 6 points occurred
in December, which was followed by a gain in the
first two months of this year when the index rose to
244 in February. Since then another 9-point decline
has been registered so that in June the index stood
at 235 in comparison with 237 the preceeding month
and in June 1943.
A less pronounced downward trend has been
evident during the first half of this year in the
number of wage earners employed in manufacturing
industries. At the end of 1943, the U. S. Department of Labor index (converted to a basis of 19351939== 100 and adjusted for normal seasonal variations) stood at 172.9. By June it had dropped to
163.5, a decrease from 163.7 in M a y and from 174.3
in June 1943. Income payments, on the other hand,
(similarly measured and converted) had increased
from 222.9 in December to 232.5 in June 1944. This
represented a gain of 1.5 points over the previous
month and a rise of 20 points during the year.
August 1944




Department store sales, as reported by the Federal
Reserve Board, have increased in volume during the
first half of 1944. From 163 percent of the 19351939 seasonally adjusted average, they have advanced with only two breaks until June, when they
stood at 175. Despite a decline of 8 points from May
to June, the index was still 8 points above the June
1943 figure. The value of sales in the first half of
1944 was 7 percent greater than in the same period
last year.
War expenditures in the January-June 1944 period
amounted to $46,450,000,000—an increase of $3,203
million over the preceding six months; and $4,724
million more than during the first half of 1943.
Figures released by the War Production Board and
the U. S. Treasury Department show that more was
spent on the war in June—$7,957,000,000—than in
any prior month.
[1935-1939=100]
June
1944

May
1944

49.5
58.5
11.4
10.9
108.1
108.1
129.4
129.2
183.9
175.3
» 235.0 r 237.0
*163.5
163. 7
*232.5 ' 231.0

Percent
change

June
1943

+18.2
+4.6
0.0
+0.2
+4.9
-0.8
-0.1
+0.6

59.6
16.1
108.0
123.5
142.3
237.0
174.3
212.1

Percent
change
-1.8
-29.2
+0.1
+4.8
+29.2
-0.8
-6.2
+9.6

r» Preliminary.
Revised.
i Adjusted for normal seasonal variation.

305

BUILDING

ACTIVITY—Half-yearly

Construction costs for the standard house
[Average month of 1935-1939=100]

decline noted

Residential construction started in all urban areas
of the United States during the first six months of
1944 was only about half that for the same period of
1943. T h e U . S. Department of Labor estimates that
64,300 dwelling units were placed under construction in the first half of 1944, compared with 113,200
units in the first half of last year. A drop of 81
percent in public housing accounted for most of
this year's decrease. In private construction, an
increase of 8 percent in 1-family dwellings failed to
offset a larger decrease in 2- or more-family dwellings,
and an over-all decline of 3 percent resulted.
As the war-housing program nears completion, the
amount of public housing accounts for a diminishing
proportion of total residential construction. Of all
dwelling units started during the first six months of
1944, only 17 percent were publicly financed compared with nearly 52 percent in the same 1943 period.
During June, the volume of residential construction rose about 1 percent over May, as an increase in
privately financed building exceeded the reduction
in publicly financed units. The June volume,
however, was 20 percent less than in the same month
last year. Contracts awarded for public housing
fell from 1,402 dwelling units in May to 1,293 in
June—a decline of 8 percent. Building permits for
private construction moved up 2 percent from 9,743
dwelling units in May to 9,973 in June. A comparison of June 1944 activity with that recorded in June
1943 shows a decrease of 20 percent in total residential construction and declines of 52 and 13
percent, respectively, in public and private building.
[TABLES 1 and

2.]

BUILDING COSTS—Upward
trend continues

The cost of constructing the standard 6-room
frame house moved consistently upward during the
first half of 1944, with an over-all rise approximating
that for the comparable period last year. Total
costs rose 1.9 perceot from December to June compared with a gain of 1.8 percent during the first half
of 1943. The reasons for the increased cost shifted
somewhat, however, from last year. In 1944, material prices rose 2.4 percent and labor costs moved up
1.1 percent. In 1943, labor costs rose 2.8 percent
and material prices, 1.3 percent.
The Department of Labor's composite index of
wholesale prices of building materials followed a
306




Element of cost
Material
Labor_
Total
r

June
1944

May Percent
1944- change

June
1943

Percent
change

130.7
137.5

130.2
137. 3

+ 0.4
+ 0. 1

123.0
134.3

+ 6.3
+ 2. 4

133.0

132.6

+ 0.3

126. 8

+ 4.9

Revised.

similar, pattern in increasing 2.2 percent during the
first six months of this year, compared with a rise
of only 0.6 percent in 1943. All components of the
index moved to higher levels, except structural steel
which showed no change. Lumber and cement,
with gains of 4.4 and 3.0 percent, respectively,
accounted for most of the rise.
During June the cost of constructing the standard
house increased fractionally over M a y as a result of
gains of 0.4 percent in material costs and 0.1 percent
in labor costs. At the end of June, the index stood
at 133.0 compared with 132.6 (revised) in May and
126.8 percent in June 1943. Wholesale building
prices advanced slightly in June due to rises in the
prices of brick and tile, and in paint and paint materials. The over-all increase which was registered
during the year amounted to 5 percent. [TABLES
3, 4 and 5.]

MORTGAGE LENDING-Record
volume a c h i e v e d

New loans made by savings and loan associations
during the first six months of this year surpassed the
volume attained in any comparable period on record.
The total of $691,000,000 loaned to borrowers during
the January-June period was 34 percent more than
the aggregate in the same period last year and 6
percent above the previous high for the corresponding
period in 1941.
N e w m o r t g a g e loans distributed b y purpose
[Dollar amounts are shown in thousands]
Purpose
Construction
Home purchase
Refinancing
Reconditioning
Other purposes
Total

June
1944

May
1944

Percent
change

June
1943

Percent
change

$9, 663 $7, 338 + 31.7 $8, 946 + 8.0
103, 276 98, 872 + 4. 5 74, 885 + 37.9
14, 963 14, 415 + 3. 8 15, 913 - 6 . 0
2,957 2,967 - 0 . 3 2,707 + 9.2
9,850 8,931 + 10.3 6,425 + 53. 3
140, 709 132, 523

+ 6.2 108, 876 + 29.2

Federal Home Loan Bank Review

The increase of $156,000,000 in home-purchase
lending accounted for most of the total rise ($176,000,000) over the first half of last year. There were
also gains of $13,000,000 in "other purpose" loans,
$11,000,000 in construction lending, and less than
$1,000,000 in reconditioning loans. Loans for refinancing, the only class to show a decrease, were
down over $5,000,000. This gain in home-purchase
loans raised the proportion of advances for this purpose to 71 percent of the total for the six-month
period.
Increased lending activity during the JanuaryJune period of 1944 was evident in all Federal Home
Loan Bank Districts. The New York and Chicago
TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES-BY TYPE OF ASSOCIATION
BY MONTHS

MILLIONS
OF DOLLARS

140

1

TOTtHL

/(ALL ASSO

)

y

*"<.

STATE CHARTlERED MEMBERi

V-; :sr**

....

•

fc** ; — 4 — - K V

V

J

>
•jr

V

FEDERALS J****

i i

NONMlZMBERS
i i
I i
JUN

SEP.

1 1

1 1
DEC.

MAR

1942

i i
JUN.

i i

1 1
SEP.

i i

i i . i i
JUN.

DEC

SEP

DEC.

1944

1943

UNITED STATES-BY PURPOSE OF LOAN
BY MONTHS

MORTGAGE RECORDINGS-Unbroken
rise shown this year
The unbroken rise in nonfarm mortgage recordings, evident so far this year, carried the total volume
for the first six months to $2,176,000,000. This was
nearly 28 percent above the amount of mortgages of
$20,000 or less recorded during the same period of
1943, and only 2 percent below the record high
established for this series in the first half of 1941.
All types of mortgagees, except insurance companies, participated in this year's increased volume.
Individual lenders reported the largest percentage
rise, 40 percent. Other gains were: savings and
loan associations, 35 percent; banks and trust companies, 24 percent; miscellaneous lenders, 23 percent; and mutual savings banks, 14 percent.
The relative participation of the various types of
mortgagees in the total volume of business showed
only slight shifts as between the January-June
periods of 1944 and 1943. This year the proportion
of mortgages recorded by savings and loan associations and individual lenders increased 2 points each,
to 33 percent and 24 percent, respectively. Recordings of insurance companies declined 2 points to 6
percent, while the proportion accounted for by banks
and trust companies, mutual savings banks, and
miscellaneous lenders changed by less than 1 point.
Mortgages of $20,000 or less recorded in June
totaled $422,000,000, an increase of 4 percent over
the previous month and 21 percent above June 1943.
All classes of mortgagees recorded a larger volume
of loans in June than in May. Insurance companies
were alone in showing a lower volume of recordings in
June 1944 than during the same month last year.
[TABLES 8 and

9.]

Mortgage recordings by type of mortgagee
[Dollar a m o u n t s are shown in thousands]

^^CONSTRUCTION

O^fe

Z^3!T-5?jL'.NANCm

SbfiSEsESi^

t.otH£RjT

0CC.

MAR

DEC.

MAR.

JUN.

«943

SEP.

DEC.

MAjl

r RECONDITIONING

JUN.

SEP.

1944

regions registered the largest gains over last year,
55 and 53 percent, respectively. The Portland
area had the smallest increase—10 percent.
The volume of new loans made during one month
reached a new peak in June, with a total of $141,000,000. This was an increase of 6 percent over May
and 5 percent above the previous peak in June 1941.
The Cincinnati and Topeka Districts reported slight
decreases, while all other Bank Districts registered
increased activity. [TABLES 6 and 7.]
August 1944




T y p e of lender

Savings and loan associations
Insurance companies__
Banks, t r u s t companies
M u t u a l savings banks_
Individuals
Others
Total

Percent
change
from
May
1944

+ 4. 4
+ 1.9
+ 0.
+ 4.
+ 3.
+ 10.

5
4
6
3

+ 4. 1

PerPercent
Cumulacent
of J u n e
tive reof
1944
cordings
total
a m o u n t (6 m o n t h s ) recordings

34. 6
5.3
18. 8
3.7
23. 5
14. 1

$725, 872
125, 678
424,
73,
518,
308,

33.4
5.8

070
036
318
853

19. 5
3.3
23. 8
14. 2

100.0 2, 175, 827

100. 0

307

FEDERAL H O M E L O A N B A N K SYSTEM
[TABL E

Conditions under which the Federal Home Loan
Banks operated during the first six months of 1944
brought some accentuations and some reversals of
the previous year's activities. Financing operations
were conducted on an expanded scale, although not
at pre-war levels, and the aggregate assets of these
institutions increased substantially. On June 30,
1944, they amounted to almost $284,000,000—an
increase of more than $23,000,000 during the year.
In the January-June period of this year, a contraseasonal trend was noted in that the total of Bank
advances exceeded repayments. This occurred in
spite of the fact that in only two months—January
and June, but primarily the latter—the amount of
money advanced was greater than the repayments
received. This excess amounted to $18,210,000.
Repayments totaled $39,000,000 more than advances in 1943 and $26,800,000 more than in 1942.
Advances made during the first six months of
1944 aggregated $117,659,000 in contrast to $52,083,000 for the corresponding period of 1943. An
expansion of lending activity of member institutions,
particularly in the field of home-purchase loans,
together with greatly increased participation in the

12]
war-financing program, undoubtedly account for
the relatively high level of advances in 1944.
The large volume of private investments in member associations permitted substantial retirement of
the indebtedness of savings and loan members to
the F H L Banks. The six-month total in 1944 was
$99,448,000—an increase of $8,344,000 over the
same 1943 period and $17,448,000 more than in 1942.
Because of the relationship of advances to repayments, the balance of advances outstanding on June
30, 1944 increased approximately $18,000,000 since
the end of 1943, totaling $128,278,000. This was
approximately $38,000,000 above the extremely low
balance on June 30, 1943.
The increased volume of advances is reflected in a
decrease in Government securities held by the Federal Home Loan Banks at the end of June this year.
These investments totaled $131,973,000 on June 30,
1944—a decline of almost $23,000,000 from the same
time last year.
Among the liability items, several substantial
changes were noted from 1943. Total liabilities had
increased by about $15,000,000 and on June 30 of
this year they amounted to $80,220,000. At the same

Condensed consolidated statement of condition of the Federal Home Loan Banks as of June 30,1944
ASSETS
CASH
(7. 99%)
Cash on hand and on deposit in the U. S. Treasury
and commercial banks
CASH ON DEPOSIT IN SPECIAL ACCOUNT
IN T H E U. S. T R E A S U R Y
(0. 00%)
To provide for retirement of matured debenture
obligations
INVESTMENTS
- (46.52%)
United States Treasury Bills $5,697,978.23
Other obligations of the U. S. Government and[
securities fully guaranteed by it $126,275,353.00)
ADVANCES OUTSTANDING
(45. 22%)
Advances made under provisions of the Federal
Home Loan Bank Act to members
ACCRUED INTEREST RECEIVABLE.
(0. 26%)
Interest accrued but not due on investments andI
advances outstanding
D E F E R R E D CHARGES
(0.01%)
Prepaid expense items applicable to future operations
O T H E R ASSETS
(0.00%)
Accounts receivable and miscellaneous assets
TOTAL ASSETS

(100.00%)

$22, 656, 830. 70

LIABILITIES AND CAPITAL
LIABILITIES

5, 462. 50
131,973, 331. 23

128, 277, 546.11
752, 578. 31
27,978. 44
4, 617. 37

$283,698,344.66

DEPOSITS
$21,388,388.18
Demand and time deposits of members totaled $21,360,313.18
and the deposits of applicants on stock subscribed in connection with membership applications, $28,075.00
A C C R U E D INTEREST PAYABLE
27,143.07
Interest accrued but not due on members' time deposits,
$9,129.58 and on consolidated debentures, $18,013.49
D I V I D E N D S PAYABLE
781,147.88
Dividends payable in July 1944 on stock as of record June 30,
1944
ACCOUNTS PAYABLE
23,046.52
Matured debenture obligations totaled $5,462.50 while miscellaneous items totaled $17,584.02
D E B E N T U R E S OUTSTANDING
58,000,000.00
Consolidated debentures outstanding which are the joint and
several obligations of the Federal Home Loan Banks:
Series "B-1944 V%% due 8-19-44
$14, 000, 000. 00
Series "A-1945 0.85% due 1-15-45
44,000,000.00
TOTAL LIABILITIES

i, 219, 725. 65
CAPITAL

As of June 30, 1944, the Reconstruction Finance
Corporation held 67.1 percent of the total capital
stock in the Federal Home Loan Banks, which
represented an investment of $124,741,000. The
capital stock of the Banks owned by members totaled
$61,235,600, an increase of $3,657,800, or 6.4 percent,
over December 31, 1943.
The Surplus-Reserve and Undivided Profits accounts of the several Banks reflect an increase from
$16,664,229.43 at the close of 1943 to $17,502,269.01 on
June 30, 1944 which is a gain of 5.0 percent.

CAPITAL STOCK:
Fully paid issued and outstanding
$185, 975, 600.00
Subscribed for and partially paid. $1,000.00
Less Unpaid balance
250.00
750.00
Total paid in.
SURPLUS:
Legal reserve (20% of net earnings)
Reserve for contingencies
Total Surplus
UNDIVIDED PROFITS
TOTAL CAPITAL




8,046,193.63
2, 392,154. 21
10,438,347.84
7,063,921:17
203, 478, 619.01

TOTAL LIABILITIES AND CAPITAL

308

$185,976,350.00
,. _

$283,698,344.66

Federal Home Loan Bank Review

time, deposits were $7,900,000 less than a year ago
and debentures outstanding had increased by $23,000,000. Surplus and undivided profits each increased by about $1,400,000, while total capital was
approximately $8,000,000 greater than in June 1943.
Advances made during June of this year amounted
to almost $65,000,000, conforming to the seasonal
pattern of a substantial increase over May. In this
instance, the increase amounted to $60 million—
four times as great as last year's increase of $15 million. The $65 million figure represents an increased
amount advanced by each Bank in June over May
and an excess of advances over repayments in each
District.
Eepayments received during June were less than
during May in seven Bank Districts with Indianapolis the only Bank reporting a lower balance this
June than last. The June 1944 total for all Banks
was $8,162,000—down $6,816,000 from May, but up
$1,066,000 above the total for June 1943.

Interest rates on advances to members of the
Federal Home Loan Bank System1
Federal Home Loan
Bank

Boston.

New York,
Pittsburgh _

Winston-Salem_.
Cincinnati

Dividends
Ten Banks declared dividends in June totaling
$907,600 for the first half-year of 1944. This brings
the cumulative total of dividends paid since the Bank
System was established in 1932 to $22,407,000. Of
this, over $5,450,000 has been received by members.
Of the total dividends declared as of June 30, 1944,
the Keconstruction Finance Corporation received
$618,000, while $290,000 went to Bank System members. One percent was the most common rate of
dividend, being paid by seven of the Banks. Two
Banks declared a dividend of 1% percent, and only
one paid 2 percent.
Dividends paid or declared by the Federal Home
Loan Banks on June 30, 1944
Rate
per
annum

Federal Home Loan Bank

Government x

Total

Percent
1.0
1.0

$29, 947. 94
31,650.43

$62,337. 50
94,816.00

$92,285.44
126,466.43

1.0
1.5
1.5
1.0
2.0
1.0
1.0
1.0

49,349. 97
47,185.19
46, 251. 73
19,467. 72
25,164.21
12, 267,67
8,622. 23
20, 034.47

63,878. 50
49, 330. 50
106,304.25
36, 974. 50
87, 724.00
36,668.00
29,800.00
49, 839. 50

113,228.47
96, 515. 69
152, 555.98
56,442.22
112,888.21
48,935.67
38, 422.23
69,873.97

289,941. 56

617,672. 75

907,614.31

Boston
_
New York 2
._
Pittsburgh .. ._.
Winston-Salem 2__
__
Cincinnati_____
Indianapolis
__ __ __
Chicago
Des Moines ______ __ __
Little Rock. _
Topeka
Portland
___
Los Angeles
__ __ __
Total

Members

i On February 20, 1941 the R. F. C. purchased from the U. S. Treasury, its
holdings of Federal Home Loan Banks' stock as provided for by an Act of the
Congress, approved June 25, 1940. The Treasury Department waived any
claim
to dividends arising from earnings subsequent to January 1, 1941.
2
These Banks declare dividends as of December 31.

August 1944




Indianapolis..

Chicago _

Des Moines _

Little Rock
Topeka

Portland. _-

Los Angeles..

Rate in
effect,
July 1,
1944

Type of advance

Percent
advances amortized within 1 year,
IV2 Short-term
or secured by Government bonds
On advances for 5 years, for defense housing
purposes, not exceeding 10% of member's
assets, amortized at not less than 5% quarterly
2V2 All other advances
1M Short-term advances amortized within 1 year
2y2\ Long-term advances
Short-term secured advances for purchase of
Government securities during War Loan
Drives
Advances for 5 years with amortization of 10%
per annum, payable quarterly, for purpose
of repurchasing HOLC and Treasury share
investments
3
All other advances
2
All advances
iKI On advances not exceeding 6 months, for purchase of U. S. securities or for the repurchase
of share investments made by the HOLC or
Treasury
i ^ On advances not exceeding 1 year secured by
(1) Obligations of or guaranteed by the Government (2) Other acceptable collateral, advances so secured not to exceed current redemption price of Series F and G Savings
Bonds held by member
2
All other advances
On advances not exceeding 6 months
2
On advances not exceeding 1 year, but in excess
of 6 months
On long-term advances for the first year of the
note
2K; On long-term advances beginning with the
second year from the date of the note
*Short-term advances amortized in equal
monthly instalments
2
On 1 year unamortized advances for purpose of
repurchasing share investments made by
HOLC or Treasury, or purchase of Treasury
obligations
*Short-term advances amortized by not less
than 2M% quarterly
3
All other advances
* Advances must not exceed 10% of member's assets
On secured advances not exceeding 6 monthswithout amortization requirement, for pur,
chase of Government bonds. Such advances,
together with other type of short term advances to a member shall not exceed 40% of
its line of credit
2 Advances not exceeding 1 year
2H| Advances exceeding 1 year
2
All advances
1
On secured advances not exceeding 6 months,
without amortization requirement, for purchase of Government bonds during Fifth
War Loan Drive
All other advances
On advances not exceeding 4 months to purchase Government securities during Fifth
War Loan Drive, such loans to be collateralized by such securities; renewals at 2% if
bond secured or 3% if mortgage secured
Advances collateralized by Government obligations
Effective for the month of July 1944, on advances for retiring Treasury or HOLC investments on an unsecured basis, with maturity not to exceed 6 months. Renewals to
be on secured basis
3
All other advances
On
1 year secured advances for purchase of
1H\
Government bonds
On secured advances for purchase of obligations of U. S. or in an amount equal to the
purchase price or par value, whichever is
less, of obligations of the U. S. purchased
since 1/1/42
(Foregoing advances limited to $100,000 or
25% of line of credit, whichever is greater)
All other advances

m

m

1

Rates on advances to nonmembers are Y2 percent higher.

309

Interest Rates
Little change was noted in interest rates on F H L B
advances, except for preferential rates established to
facilitate war-bond purchases. Three Banks—Des
Moines, Topeka and Portland—established new
low rates for the purchase of Government securities.
A total of eight Banks now follow this practice.
Interest rates on long-term advances in all Districts
vary from 2 to 3 percent.
All Banks pay one-half of 1 percent on members 1
time deposits. However, the period during which
amounts must remain on deposit in order that interest
may be received thereon varies among the Banks as
follows: Boston and New York—over 30 days, Des
Moines—over 45 days, Indianapolis—over 60 days,
and all other Banks—over 90 days.

INSURED ASSOCIATIONS-Substantial
growth shown

Total liquid resources of all insured savings and
loan associations reached a new high of $1,195,000,000, or 26 percent of all assets. Of the total,
$955,000,000 was invested in Government bonds and
$240,000,000 was held in cash on hand and in banks.
Investment in Government bonds has increased
154 percent during the past year and has risen from
10 percent of total resources in June 1943 to 21
percent at the same time in 1944. [Table 13.]
FEDERAL SAVINGS AND LOAN ASSOCIATIONS

Assets of the 1,465 Federal savings and loan associations totaled $2,881,000,000 at the end of June,
an increase of $264,000,000, or 10 percent, since
January 1. During this period, private repurchasable capital also increased 10 percent to reach
$2,489,000,000 and first mortgages outstanding rose
3 percent to an aggregate of $1,973,000,000.
Share investments and repurchases, June 1944

Insured associations continued to show substantial
growth during the first half of 1944. Total assets
increased more than $400,000,000 or nearly 10
percent, to reach $4,584,000,000. The amount of
mortgages held stood at $3,118,000,000, an increase
of 4 percent since the first of the year. There was
a marked advance of $349,000,000, or 10 percent,
in private repurchasable capital during the sixmonth period, which brought the total to $3,923,000,000. The amount of real-estate owned underwent a further recession in declining to $33,000,000
compared with the $42,500,000 held in December
1943.
New private investments during the month of
June totaled $128,000,000 and repurchases amounted
to $47,000,000. This resulted in a repurchase ratio
of 36 percent for all insured associations compared
with 41 percent last month and 32 percent in June
1943.
Progress in number and assets of Federals

[Dollar amounts are shown in thousands]

I t e m a n d period

All associations

All insured
associations

Uninsured
members

Nonmembers

Share i n v e s t m e n t s :
1st 6 mos. 1944__ $900, 593 $693, 308 $125, 410 $81, 875
1st 6 mos. 1943__ 732, 582 542, 256 104, 522 85, 804
Percent change
+ 23
+ 20
-5
+ 28
J u n e 1944
167, 661 127, 945 25, 381 14, 335
J u n e 1943
136, 969 103, 939 18, 797 14, 233
Percent change
+ 22
+ 23
+ 35
+1
Repurchases:
1st 6 mos. 1944__ $494, 227 $360, 777 $79, 973 $53, 477
1st 6 mos. 1943_- 435, 574 290, 210 79, 330 66, 034
Percent change
+ 13
+ 24
-19
+1
J u n e 1944
67, 710 46, 560 14, 053
7,097
J u n e 1943
53, 228 33, 704 11, 344
8, 180
Percent change
+ 27
+ 38
+ 24
-13
Repurchase
ratio:
(percent)
1st 6 mos. 1944
1st 6 mos. 1943
J u n e 1944_ ___ _
J u n e 1943

54.9
59. 5
40.4
38.9

52.0
53. 5
36.4
32.4

63.8
75. 9
55.4
60.4

65. 3
77.0
49.5
57.5

[Dollar amounts are shown in thousands]
Approximate assets

Number
Class of association

J u n e 30, M a y 31,
1944
1944

New
Converted _

635
830

Total

1,465

310




J u n e 30,
1944

May 31,
1944

636 $960, 001
830 1, 921, 275

$916, 336
1, 859, 329

2, 881, 276

2, 775, 665

1,466

F L O W OF PRIVATE REPURCHASABLE CAPITAL

During the first six months of this year, the total
investment of private capital in the shares of all
savings and loan associations amounted to approximately $900,000,000, a gain of 23 percent over the
estimated $733,000,000 so invested during the first
half of 1943. Share repurchases also increased to
$494,000,000 in the January-June period from
$634,000,000 in the like months of 1943, but at only
Federal Home Loan Bank Review

half the rate shown by new investments. The
resulting net increase in the private capital of savings
and loan associations during the 1944 period was
$406,000,000, a rise of 37 percent over the first six
months of 1943. The ratio of repurchases to new
investments during the first half of the current year
was 54.9, a decrease from the ratio of 59.5 in the
corresponding interval of 1943.
During June, share investments in all savings and
loan associations totaled $167,661,000, a gain of 22
percent over the $136,969,000 invested in the corresponding month last year, while repurchases
amounted to $67,710,000 reflecting an advance of 27
percent over the total for June 1943. As a result,
the repurchase ratio in June this year was 40.4 percent, having risen above the 38.9 percent registered
in the same month last year.

FORECLOSURES-Drop below

increased earnings coupled with the fact that dividends to stockholders have not been appreciably
greater than during the pre-war period. A large
proportion of these earnings, after tax payments,
have been retained by business. In addition, increased allowances for depreciation have recently
been well in excess of declining capital expenditures.
These factors have enabled many corporations to set
up large reserves to meet the contingencies of postwar operation.
Even more important from a long-term standpoint, the Bulletin states, has been the increase in
underlying strength as represented by the larger
equity positions of these concerns. Higher retained
earnings have been made possible for many organizations by reason of large debt retirements, an expansion of operating property and greater net working
capital.

previous low point
During the first six months of 1944, nonfarm foreclosures continued to decline from the extraordinarily low level reached in 1943. The estimated
number of foreclosures completed during the first
half of 1944 was 9,190, which represented a reduction of 35 percent from the number of actions in the
comparable period of 1943. Each of the Federal
Home Loan Bank Districts shared in this improvement, with decreases ranging from more than 50
percent in the Little Rock and Portland regions to
15 percent in the Boston area.
For the three-month period ending in June, foreclosures on nonfarm properties were estimated at
4,424. This was a decline of 7 percent from the
previous quarter and a drop of 37 percent from the
second quarter of 1943. Of the foreclosures estimated for the second quarter of this year, 1,325
occurred during April; 1,535 in M a y ; and 1,564 in
June. The seasonally adjusted indexes for these
months were 10.0, 10.9 and 11.4, respectively.
[TABLE

15.]

DIRECTORY
CHANGES
June 16-July 15, 1944
Key to Changes
•Admission to Membership in Bank System
•"Termination of Membership in Bank System
#Federal Charter Granted
#Cancelation of Federal Charter
01nsurance Certificate Issued
00lnsurance Certificate Canceled
DISTRICT N O . 3
PENNSYLVANIA:

Lancaster:
0First Federal Savings and Loan Association of Lancaster, 102 East
King Street.
##Home Federal Savings and Loan Association (merged with First Federal
Savings and Loan Association of Lancaster).
##Industrial Federal Savings and Loan Association (merged with First
Federal Savings and Loan Association of Lancaster).
Philadelphia:
*Crusader Savings and Loan Association, 5011 Baltimore Avenue.
Pittsburgh:
0Duquesne-Prospect Savings and Loan Association, 1202 Grandview
Avenue.
DISTRICT N O . 5

KENTUCKY:

Louisa:
**Big Sandy Building Association.

OHIO:

Wooster:
#0Peoples Federal Savings and Loan Association, 121 North Market Street.
DISTRICT N O . 8
IOWA:

Liquidity in Private Business

Atlantic:
## 00Atlantic Federal Savings and Loan Association, Atlantic National
Bank Building.
MISSOURI:

•
AN interesting long-range report has just been
published in the Federal Reserve Bulletin showing that
a large increase in liquid assets of both large and small
corporations has been an outstanding characteristic
of the wartime experience of business. In spite of
high taxes, the financial position of most concerns,
according to this study, has been strengthened by
August 1944




Joplin:
**Southwestern Building and Loan Association, 323 Miners' Bank
Building.
DISTRICT N O . 9
TEXAS:

Dallas:
**United Fidelity Life Insurance Company, United Fidelity Life Building.
Orange:
** ##00Orange Federal Savings and Loan Association, 205-B Fifth Street.
DISTRICT N O . 12
CALIFORNIA:

San Rafael:
0Marin County Mutual Building and Loan Association, 1219 Fourth Street.

311

Table 1 . — 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 in June 1944, by Federal Home Loan Bank District and by State
[Source: U S. Department of Labor]
[Dollar amounts are shown in thousands]
All residential
N u m b e r of family
dwelling u n i t s

Federal Home Loan Bank District and State

No. 2—New York

.

9,126

$28, 602

$29, 725

523

277

2,086

. ... .

47
2
39
2

487

206
1
69
1

1,877
8
579
9
2

47
2
39
2

351
7
162
2
1

206
1
69
1

1,488
8
579
9
2

56

892

181

2,339

56

477

181

1,438

34
22

251
641

110
71

575
1, 764

34
22

86
391

110
71

252
1,186

..

_

133

496

298

1,894

133

480

298

1,864

2
109
22

16
478
2

6
272
20

48

16

6

1,845
1

120
292

462
2

272
20

48
1,815
1

_.

1,907

2,625

4, 9S2

6,873

1,164

1,308

2,965

3,485

162
499
747
93
171
49
24
162

183
915
418
226
283
119
12
469

213
1,529
2,021
126
447
61
39
546

358
2,621
1,044
608
556
407
5
1,274

158
111
404
93
163
49
24
162

183
113
402
226
179
99
12
94

203
460
1,119
126
411
61
39
546

358
581
998
608
363
341
5
231

1,457

1,121

5, 388

3,909

1, 457

711

5,388

2,833

7
1,181
269

23
1,008
90

17
4,399
972

43
3,671
195

1,181
269

11
610
90

17
4,399
972

25
2, 613
195

1,501

2,216

5,657

8,389

689

1,448

3,151

6,378

322
1,179

80
2,136

1, 065
4,592

131
8, 25S

222
467

62
1,386

859
2,292

115
6,263

666

475

2,425

1,850

597

408

2,193

1,624

597
69

310
165

2,308
117

1,233
617

528
69

267
141

2,076
117

1, 075
549

125

29

380

37

125

29

380

37

63
19
41

7
6
5

204
29
146

7
3
1

63
19
41

7
6
5

204
29
146

7
3
1

.
._ . . .

_
..

_

No. 6—Indianapolis
Indiana
Michigan
No. 7—Chicago.

._
..

Iowa
Minnesota
Missouri
North Dakota.
South Dakota

_ _. _

__

Illinois-..
Wisconsin
No. 8—Des Moines

...
...
.
__

_
_________ ...

.

.
_ __ ._

_
_

_. .

_

No. 9—Little Rock
Arkansas
Louisiana
Mississippi.
New Mexico
Texas
No. 10—Topeka
r'l
T^
T
W

_..

...
. _

_ _

. . _.

___
______

No. 11—Portland

__
_

_ _.

-_.

_
_

.
_..

....

N o . 12—Los Angeles
A r i z o n a . ._
California
N e v a d a _.

312




_
...

_.

Colorado
Kansas
Nebraska
Oklahoma

1 Idaho.
| Montana..
Oregon
Utah
f Washington
Wyoming. _

._ __

_

_
_ _

162
2
1

__
_ _ __

._

. . .
_.
. _._

J u n e 1943

90

No. 5—Cincinnati
Kentucky.. _ _
Ohio...
. _
Tennessee__ __

J u n e 1944

8,947

_

_

J u n e 1943

2,475

_

__

J u n e 1944

$41, 451

No. 4—Winston-Salem
Alabama
_. ._
District of Columbia
_ __
Florida
__
Georgia____•
Maryland ....
North CarolinaSouth Carolina.-Virginia.

J u n e 1943

277

No. 3—Pittsburgh
_

J u n e 1944
$35,178

. ._

.

J u n e 1943

659

. ._ . _

Delaware_
Pennsylvania.-. . . .
._
West Virginia
__

J u n e 1944

valuation

14,132

7

New Jersey. _ . ___
New York .... . . .

Permit

90

_ _ . . _ _ .
. . . ___
_

__ __

valuation

structures

11, 2G6

__ _ __ .__ _._

Connecticut
_ _ _. _
Maine.._
Massachusetts. .
New Hampshire
Rhode Island
Vermont _ _ _ _ _ _

Permit

All p r i v a t e 1- a n d 2-family
N u m b e r of family
dwelling u n i t s

__ .

UNITED STATES

No. 1—Boston

structures

2

11

1

26

2

11

1

26

1,893

1, 344

4,122

2,292

1,527

1,204

3,251

2,076

37
481
51
81
1,243

51
96
68
110
1,019

15
1,193
56
121
2, 737

54
86
51
170
1, 931

37
185
51
81
1,173

51
60
64
10
1,019

15
504
56
121
2, 555

54
42
47
2
1,931

296

466

834

1,813

292

350

833

1,077

73
88
52
83

116
91
165
94

222
263
267
82

322
251
581
159

73
88
52
79

104
87
125
34

222
263
267
81

297
242
511
27

624

940

2,202

3,226

603

768

2,155

2,794

30
13
91
260
221
9

1
7
119
203
590
20

57
40
218
1,040
820
27

2
25
474
675
1,993
57

26
13
91
252
212
9

1
7
82
203
467
8

41
40
218
1,024
808
27

2
25
294
676
1,770
27

2,518

2,869

8,432

6,854

2,214

1, 420

7,527

4,033

26
2,492

20
2, 754
95

51
8,381

6
6,564
284

26
2,188

20
1,305
95

51
7, 476
1

7
3, 742
284

Federal Home Loan Bank Review

Table 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]
[Dollar amounts are shown in thousands]
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

P r i v a t e construction .
1-family dwellings
2-family dwellings *
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._
1
2

M o n t h l y totals

J a n u a r y - J u n e totals

J u n e 1944

M a y 1944

J u n e 1943

1944

9,973

9,743

11, 422

53, 281

7, 554
1,383
1,026

6,981
956
1,806

7,440
1,686
2,286

40, 225
5,903
7,153

J a n u a r y - J u n e totals
1944

1943

J u n e 1944

M a y 1944

J u n e 1943

54,920

$31,676

$29,791

$35, 639

$168,401

$166,148

37,152
7, 253
10, 515

23, 692
4,910
3,074

21, 801
3,152
4,838

25, 299
4,426
5,914

127, 355
20,182
20,864

119, 507
19,416
27, 225

1943

1, 293

1,402

2,710

11, 035

•58,313

3,502

4,289

5,812

26, 377

123, 801

11,266

11,145

14,132

64, 316

113, 233

35,178

34,080

41, 451

194, 768

289, 949

Includes 1- and 2-family dwellings combined with stores.
Includes multi-family dwellings combined with stores.

Table 3 . — B U I L D I N G COSTS—Index of building costs for the standard house in representative cities
in specific months 1
[Average month of 1935-1939=100]
1944

1943

Federal H o m e Loan B a n k District
a n d city
July
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
W h i t e Plains, N . Y

137.5
143.6
159.3
143.8
142.1
149.1

.
-

N o . 6—Indianapolis:
Evansville, I n d
_ _
. _ __
Indianapolis, 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. Paul, M i n n
Kansas City, M o
St. Louis, Mo*
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 , Oreg* 1 _ Salt L a k e C i t y , U t a h * .
Seattle, Wash*
Spokane, Wash .

-

-

-

._
J
_ .-_ _.
- - __ .
. __ . __

April

r
r
r
'

138. 4
140. 7
157. 1
140. 4
140.0
148. 7

Jan.

'
r
r
r

136. 9
138. 8
154. 5
140. 6
135.8
«• 141. 5

Oct.

r
'
r
'

138. 0
135. 6
149. 7
140. 6
134.7
136.2
126.4
129.9
132.5
142.1
128.5

July

r 138. 0
r 136. 4
r 149. 7
•" 137. 6
130.2
129.7

125.3

125.3

125.3

143.4
152.6
131.1

143.4
149.6
131.1

143.4
148.4
131.1

118.1
125.7
124.6
137.6
122. 6
120.9
120.7

116.4
123.0
121.9
' 137. 6
122.6
120.2
118.9

116.4
122.9
121. 9
r 138. 0
118.5
120.2
118.9

114.2
118.5
119.2

114.2
118.5
119.2

118.2
118.5
117.4

117.9
118.5
117.4

133.0
118.8
137.7
123.2
133.2
122.9
111.7

132.7
118.8
137.7
123.3
132.0
r 122. 9
••111.7

132.7
118.8
135.6
123.3
132.0
' 122. 9
'111.7

126.7

126.3
114.0
133.4
121.6
126.9

132.8
121.0
128.4

125.9
130.4

•

1942

1941

1940

1939

1938

July

July

July

July

July

125.3
' 138.9
146.3
130.9
128.2
r 125. 2

120.6
' 126. 6
131.1
120.6
117.3
117.0

100.7
108.8
106.7
102.5
101.1
'99.2

98.7
101.8
102. 6
100.4
99.2
97.2

126.4
126.4
131.2
122.1
127.0

114.4
117.4
117.8
112.3
118.5

107.0
96.9
104.5
102.4
102.6

103.3
105.1
98.5
107.2
105.6

102.4
94.7
107.6
107.3

113.0
118.4
118.7
' 125. 7
125.4
113.6
116.4

r 104. 9
r 107. 8
109.7
r 110. 9
111. 7
' 103. 5
104.4

102.8
104.3
107.1
' 104. 5
100.1
100. 7
103.3

101.8
101.6
108.2
' 108. 7
96.5
98.1
100.8

99.0
105.0
108.1
102. 2
97.2
102.3
106.8

125.5
112.8
121.1
121.3
122.7
' 121. 6
103.4

117.4
107.2
103. 7
113.9
113.3
'111.5
100.8

106.5
101.3
97.5
102.7
103.3
101.5
95.0

104.6
101.9
96.2
102.8
101.9
98.2 =
102.9

99.8
104.2
102.4
103.1
102.6

r

99.5
104.5
95.4
101.0
101.9
106.4
101 8

*r Indexes of July 1941 through April 1944 have been revised in order to use retail material prices collected by the Bureau of Labor Statistics.
Revised.
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 wideboard siding with brick and stucco as features of design. Best quality materials and workmanship are used.
The house is not completed ready for occupancy. It includes all furdamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished
attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wallpaper nor other wall nor ceiling finish
on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
The index reflects the changes in material and labor costs in the house described above. Allowances for overhead and profit, which were previously included in the
total costs, were based upon a flat percentage of the material and labor costs and therefore did not affect the movements of the series; no such allowances are included,
now that the index is expressed in relative terms only.
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 3 months from the same dealers, and current wage rates are obtained from the
same reputable contractors and operative builders. The Bureau of Labor Statistics furnishes building material prices for some cities. Although shortages of materials
and priority restrictions preclude the actual construction of this house under wartime conditions, tests indicate that the indexes measure fairly closely the cost changes
for smaller frame structures that now can be built.

August 1944




313

Table 4 . — B U I L D I N G COSTS—Index of building cost for the standard house
[Average month of 1935-1939=100]
E l e m e n t of cost

J u n e 1944 M a y 1944' A p r . 1944 r M a r . 1944' F e b . 1944 J a n . 1944 D e c . 1943 N o v . 1943 Oct. 1943 Sept. 1943 A u g . 1943 J u l y 1943 J u n e 1943
i

Material
Labor
T o t a l cost
r

130.7
137.5

130.2
137.3

129.7
137.0

129.1
137.8

128.8
136.5

127.8
136.1

127.6
136.0

126.8
135.6

126.0
135.0

124.4
133.8

123.4
134.2

123.7
134.3

123.0
134.3

133.0

132.6 1

132.2 1

132.7

131.4

130.6

130.5

129.8

129.1

127.6

127.1

127.3

126.8

Revised.

Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States
[1935-1939=100; converted from 1926 base]
[Source: U. S. Department of Labor]

A]] building
materials

Period

Brick and
tile

Cement

Paint and
paint materials

Lumber

Plumbing
and heating

Structural
steel

Other

942: J u n e .

122.9

108.0

103.4

146.7

123.3

129.4

103.5

112.3

943: June
July
August
September.
October
NovemberDecember. -

123.5
123.6
125.3
125.6
125.8
126.3
126.6

109.0
109.0
109.0
109.0
109.0
110.1
110.1

102.7
102.7
102.7
102.7
102.7
102.7
102.7

'154.6
155.6
161.5
162.7
163.3
164.1
164.3

125.4
125.4
126.4
126.1
126.4
126.9
127.0

118.8
118.8
118.8
118.5
118.5
120.6
120.6

103.5
103.5
103.5
103.5
103.5
103.5
103.5

110.0
109.5
109.7
110.3
110.5
110.5
111.2

1944: January-..
February.
March
April
May
June
-

126.7
126.9
127.5
128.6
129.2
129.4

110.3
110.2
110.4
110.4
110.6
110.7

102.7
102.7
102.7
103.1
105.8
105.8

164.4
165.3
167.8
170.8
171.5
171.5

127.2
127.7
128.4
128.4
128.7
130.0

120.6
120.6
120.6
120.6
121.4
121.4

103.5
103.5
103.5
103.5
103.5
103.5

111.2
111.2
111.2
111.2
111.4
111.4

Percent change:
June 1944-May 1944_.
June 1944-June 1943-

+0.2
+4.8

+0.1
+1.6

0.0
+3.0

0.0
+10.9

0.0
+3.7

+1.0
+2.2

0.0
0.0

0.0
+1.3

p

Revised

Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans
savings and loan associations, by purpose and class of association

by all

[Thousands of dollars]
Class of association

P u r p o s e of loans
Period
Construction

1942
January-June
June

-

1943
January-June . _ _ . June
-.
July
AugustSeptember
_
October
_.
November
.
December
1944:
January-June
January
February
March
A.pril._
May
June.

314




-

- - -

_
.

.-_

-

_ _
. . .

. ...

H o m e purchase

Refinancing

Reconditioning

L o a n s for
all o t h e r
purposes

Total
loans
Federals

State
members

Nonmembers

$190,438
119,393
15,930

$573,732
266,229
52,112

$165,816
81,703
15,184

$41,695
21,390
3,566

$78,820
43,092
7,303

$1,050,501
531,807
94,095

$412,828
210,115
35,279

$476,080
238,488
44, 265

$161,593
83, 204
14,551

106,497
48,177
8,946
9,209
10,616
13,211
7,452
6,928
10, S04

802,371
334,938
74,885
77, 555
82,894
86,016
83,259
73, 053
64, 656

167, 254
84,588
15,913
14, 925
14,600
13, 799
14,025
12,767
12, 550

30,441
13,794
2,.707
2,807
2,809
3,229
2,874
2,638
2,290

77,398
34,969
6,425
6,859
6,470
6,718
7,540
7,670
7,172

1,183,961
516,466
108,876
111,355
117,389
122,973
115,150
103,056
97, 572

511,757
219,088
46, 730
48,370
51,172
54,100
50, 576
44,804
43, 647

539, 299
236,141
50,182
50,648
53,497
55,907
52,026
47,108
43, 972

132,905
61,237
11,964
12, 337
12, 720
12,966
12, 548
11,144
9,953

58,679
7,872
11,195
9,127
13, 484
7,338
9,663

490,700
55,000
66,138
81,846
85,568
98,872
103, 276

79, 222
9,976
11,955
14, 422
13,491
14,415
14,963

14,350
1,521
1,960
2,266
2,679
2,967
2,957

48,196
6,609
6,916
8,469
7*421
8,931
9,850

691,147
80,978
98,164
116,130
122, 643
132,523
140,709

315,851
37,076
44,144
53,883
57,045
59, 229
64, 474

308,485
35,456
44,139
50, 686
54,212
60,141
63,851

66,811
8,446
9,881
11,561
11,386
13,153
12, 384

Federal Home Loan Bank Review

Tabic 7.—LENDING—Estimated volume of new
loans by savings and loan associations

Table 8.—RECORDINGS—Estimated nonfarm
mortgage recordings, $20 7 000 and under

[Thousands of dollars]

J U N E 1944
[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
B a n k District and
class of association

UNITED STATES-

Federal
..
State member
Nonmember

June
1944

U N I T E D STATES

Boston

..

_

Pittsburgh
Federal--State member
Nonmember
Winston-Salem
Federal.
State member
Nonmember
Cincinnati
Federal
- ._ _
State member
Nonmember
- .

Federal
State member
Nonmember
Chicago
Federal,.
State member
Nonmember
Des Moines

' _

- ._ ._-

Federal
State member
Nonmember

59,229
60,141
13,153

46, 730
50,182
11,964

315,851
308, 485
66, 811

219,088
236,141
61, 237

12, 085

10, 439

10,160

48, 965

40, 391

+21.2

4,609
6,010
1,466

3,757
5,431
1,251

2,797
5,541
1,822

17, 416
25,060
6,489

11, 666
21, 941
6,784

+49.3
+14.2
-4.3

13,864

11, 964

8,886

57, 354

37,126

+54.5

3,551
6,115
2,298

2,277
4,912
1.697

16, 825
30, 260
10, 269

8,662
19, 237
9,227

+94.2
+57.3
+11.3

11,129

10, 534

9,000

57, 419

45, 275

+26.8

5,072
3,969
2,088

4,915
3,557
2,062

3,750
2,797
2,453

26, 325
19, 065
12,029

17, 484
14,126
13,665

+50.6
+35.0
-12.0
+34.6

4.691
6,968
2, 205 J

16,888

14, 904

11,856

83,867

62, 316

9.115
6,718
1,055

7,965
6,026
913

6.067
4,587
1,202

45, 463
33, 412
4,992

31, 506
24,115
6,695

+44.3
+38.6
-25.4

23,804

24,806

20,385

117, 523

99, 321

+18.3

9,819
12,314
1,671

9,990
12, 520
2,296

7,715
11,095
1,575

47, 542
59, 766
10, 215

37,099
54,080
8,142

+28.1
+10.5
+25.5

30, 468

+24.7

Indianapolis

15,343
13, 293
1,832

+20.4
+33.5
-2.8

Indiana
Michigan

16, 052

15, 550

11, 205

77, 700

50, 796

+53.0

19,800
25, 200
5,796

+62.0
+54.3
+16.1

6, 315
7,922
1, 313

4,420
5,676
1,109

8,754

8,553

5,909

41, 677

27,822

+49.8

4,733
3,000
1,021

4,449
2,960
1,144

3,297
1,948
664

20,889
15,162
5,626

13,957
9,802
4,063

+49.7
+54. 7
+38.5

39, 280

26, 884

+46.1

6,476

5,077

3,134
3,275
67

2,161
2,819
97

15, 693
23,161
426

11,117
15, 330
437

+41.2
+51.1
-2.5

___.__-

6,354

6,364

5,137

33,141

26,138

+26.8

3,593
1,725
1,036

3,369
1,796
1,199

3, 035
1,419
683

17, 239
9,080
6,822

15, 257
7,490
3,391

+13.0
+21.2
+101.2

4,739

4,264

4,410

21, 942

19, 902

+10.3

2,917
1,572
250

2,805
1,309
150

2,999
1,211
200

14, 698
6,312
932

12, 660
6,423
819

+16.1
-1.7
+13.8

12, 328

11, 282

10, 566

74, 282

50,027

+48.5

6,672
5,598
58

5,470
5,734
78

5,004
5,482
80

43, 205
30,576
501

24, 537
25,104
386

+76.1
+21.8
+29.8

_.

Federal
-_
State member
Nonmember
Los Angeles. _

_ _.

Federal
State member
Nonmember

August 1944




6,437

3,298

34, 991

1,292
793
4,849
690
258
329

1,991
510
2,954
246
569
167

914
78
1,775
96
416
19

7,513
2,328
20,292
1,548
2,541
769

10,444

2,206

5,700

5,479 13,839

7,115

44, 783

3,325
7,119

609
1,597

2,804
2,896

588 3,806
4,891 10,033

2, 404
4, 711

13, 536
31, 247

10,169

1,942

6,769

578

5, 735

3,348

28, 541

214
9,086
869

114
1,612
216

135
5,876
1,258

33
545

207
4,904
624

171
2,997
180

874
24,520
3,147

15,146

2,807

5,445

165 12,488

3,550

39,601

522
2,698
1,463
1,541
4,149
2,122
428
2,223

471
256
889
280
129
474
202
106

371
494
851
1,035
899
390
382
1,023

165

750
1,428
4,337
948
1, 560
966
513
1, 986

253
273
763
386
379
480
232
784

2,367
5,149
8,303
4,190
7,281
4,432
1,757
6,122

29,161

2,071

10,034

464

6, 544

4,253

52, 527

2,898
25, 604
659

411
1,266
394

984
8,258
792

464

285
5, 582
677

134
1,971
2,148

4,712
43,145
4,670

8,142

3,105

7,054

21 |

3,349

3,324

24, 995

5,130
3,012

687
2,418

2,648
4,406

21 i

981
2, 368

843
2,481

10, 310
14, 685

17,149

1,530

5, 754

4

6,578

8,858

39,873

12, 927
4,222

1,052
478

3.767
1,987

4

3, 739
2,839

8,152
706

29,637
10, 236

-

9,422

2,131

6,185

168

5, 423

4,533

27,862

.
_

2,310
3,557
3,097
290
168

165
588
1,294
50
34

1,395
1,176
3,329
110
175

659
1, 569
2, 904
102
189

316
770
3,390
34
23

4,845
7,828
14, 014
586
589

8,781

2,209

2,088

6,543

2,178

21, 799

482
3,225
337
202
4,535

50
248
175
2
1,734

250
90
209
188
1,351

386
1,200
381
226
4,350

22
373
92
119
1,572

1 190
5 136
1 194
737
13, 542

7,216

90.1

2,683

4,260

1,811

16,871

1,116
2,190
1,164
2,746

138
164
305
294

403
510
415
1,355

2,287
459
398
1,116

4,487

497

3,467

328
342
1,064
606
2,001
146

35
3
267
106
86

146
133
372
617
2,065
134

13,151

2,355

20, 315

24,629

97906) 70, 356

119
12,969
63

11
2,341
3

216
20, 046
53

8771
23, 538
2141

53
9,840
13

.
_

-

K e n t u c k y ._
Ohio . .
-_ .
Tennessee . . .

18, 477
17, 740
1,780

6,623
8,296
1,133

8,211

1,594
245
1,492
155
389
84

Cincinnati

37, 997

32,079
38,891
6,730

3,959

Alabama
D i s t r i c t of C o l u m b i a .
Florida
Georgia
Maryland
...
N o r t h Carolina
S o u t h Carolina
Virginia
..

3,208
2,695
382

- . ..

Chicago
Illinois
Wisconsin
Des M o i n e s
Iowa
Minnesota
Missouri..
North Dakota
South Dakota
Little R o c k .
Arkansas
Louisiana
Mississippi
N e w Mexico.
Texas.
T o p e k a . __ _

._.
_ __
..
.

Colorado
Kansas
Nebraska
Oklahoma
Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming

Total

217
34
210

Winston-Salem

6,285

Other
mortgagees

461

Delaware
Pennsylvania
W e s t Virginia.

3,509
3,496
382

Individuals

1,505
668
9,012
361
909
170

Pittsburgh

7,387

Mutual
savings
banks

12, 625

New Jersey.
N e w York

7,635

2,712
4,299
66

Federal
State member
Nonmember

New York

Insur- Banks
and
ance
trust
comcompanies
panies

$145,893 $22, 215 $79,453 $15, 536 |$99,140 $59,394 $421,631

Connecticut
- ..
Maine
Massachusetts.
New Hampshire
Rhode Island
Vermont

3,918
3,382
335

_..

Federal
State member
Nonmember

Portland

64, 474
63,851
12, 384

7,077

L i t t l e R o c k __

Topeka ..

1943

+44.2
+30.6
+9.1

N e w Y o r k ___

Indianapolis^--

1944

+33.8

Boston

Federal
State member
Nonmember

June
1943

Percent
change

$140,709 $132,523 $108,876 $691,147 $516, 466
..

Federal
State member
Nonmember

May
1944

Savings
and
loan associations

Federal H o m e L o a n
Bank District and
State

. _ -

Los Angeles
Arizona.. . . . .
California
. .
Nevada

_.

|

168

446

3,315

77

354
281
1,283
249
927
221

369

651
280
1201
760
7, 220

1371
24
560
672
5,822
5

4,595
3,603
2,402
6,271
19, 432
1,000
783
3,623
2,250
11, 270
506

1,276
68, 734
346

315

Table 9 - M O R T G A G E RECORDINGS-Estimated volume of nonfarm mortgages recorded
[Dollar amounts are shown in thousands]
Savings and loan
associations

Insurance
companies

Banks and trust]
companies

Mutual savings banks

Other
mortgagees

Individuals

All
mortgagees

Period
Total
1943: January-June.
June
...
July
August
September
October
November
December

$539, 302
113,431
116,406
119,385
126,586
122,832
111,818
101,176

1944: January-June
January
February
March
._
April
....
May
June

725,872
89, 887
101,705
121,210
127,429
139.748
145,893

Percent

Percent

Total

Total

Percent

Percent

Total

31.7 $135, 768
32.5
26,613
33.1
25,586
33.6
24,072
33.2
23,996
31.8
25,141
31.6
23,115
30.6
22,188

8.0 $340,828
65,656
7.6
64,766
7.3
68.043
6.8
72,140
6.3
74,875
6.5
64,877
6.5
6.7

20.0
18.8
18.4
19.1
19.0
19.4
18.3
20.1

$64, 256
14,718
15,329
15,061
15,332
15,023
15,141
12,227

33.4
29.8
32.8
32.9
34.5
34.5
34.6

5.8
6.8
6.1
6.1
5.3
5.4
5.3

424,070
62,180
60,346
70,570
72,438
79.083
79, 453

19.5
20.6
19.5
19.2
19.6
19.5
18.8

73,036
9,731
9,294
11,255
12, 338
14, 882
15, 536

125, 678
20, 585
18, 753
22,660
19,671
21, 794
2, 2215

1
Table 10. - S A V I N G S - S a l e s of war bonds

Total

21.8 $251, 382
53,445
21.6
50.835
22.3
50,416
22.1
59,435
21.9
61,002
22.6
56,415
23.3
52,267
23.1

14.7 $1, 702,679
15.3
349,046
14.5
351, 516
14.2
355,432
15.6
380,809
15.8
386,303
16.0
353.673
15.8
330,989

100.0
100.0
100.0
100.0
100.0
100.0
100 0
100.0

3.3
3.2
3.0
3.1
3.4
3.7
3.7

23.8
24.0
23.3
24.2
24.2
23.6
23.5

14.2
15.6
15.3
14.5
13.0
13.3
14.1

100.0
100.0
100.0
1C0.0
100.0
100.0
100.0

Redemptions

Series F

Series G

Total

19412„_

$1,622,496

$207,681

$1,184,868

$3,015,045

$13,601

5,988,849

652,044

2,516,065

9,156,958

245, 547

10,344,369
696,213
682,871
661,200
1,400,159
1,340,148
665,293
727, 558

745,123
35,149
37, 579
28,095
138,984
93,124
23,449
24,081

2,639, 908
144,128
169,241
112,434
387,412
274,877
109,404
101,378

13, 729,402
875,491
889, 691
801,729
1,926,555
1,708,150
798,146
853,017

1, 506,894
134,822
131,424
144,966
148,498
137,496
164,412
200,840

1,084,637
2,102,345
575,714
605,709
624,253
1, 349,794

126,825
157,422
22,933
19,306
15,287
115,119

486,942
521,702
110,347
113,528
111,088
377, 284

1,698,404
2,781,469
709.054
738,543
750, 628
1,842,197

180,965
177,980
261, 549
230,614
271, 597
241, 278

1944
January.
February
March
April
May
June

518,318
72,600
72,246
89,136
89,466
95. 730
99,140

308,853
46,966
47,300
53.409
47,926
53, 858
59 394

2,175,827
301,949
309,644
368. 240
369, 268
405.095
421, 631

[Thousands of dollars]

Series E

_

Percent

Total

Table H . - S A V I N G S - H e l d by institutions

Period

1943...
June.
July
August.
September
October
November
December.

Percent

Total

3.8 $371,143
75,183
4.2
78. 594
4.4
78,455
4.2
83.320
4.0
87.430
3.9
82,307
4.3
76,432
3.7

[Thousands of dollars]

1942

Percent

E n d of period

i U. S. Treasury War Savings Staff. Actual deposits made to the credit of
t h e U S. Treasury.
* Prior to May 1941: "Baby Bonds."

Insured
savings a n d
loans i

1942: J u n e
December
1943: J u n e
July
August..
September
October
November
December
1944: J a n u a r y .
February
March
April
May.
June

Mutual
savings
banks 2

Insured
commercial
banks»

$2, 736, 258
2.983.310

$10,354, 533
10. 620,957

$13,030. 610
13,820.000

3, 270.834
3,318,900
3,362,380
3,389.891
3, 435.798
3, 488.270
3,573,896

11,104, 706

14,870,000

11,707,000

16.157,993

3,710,356
3, 922, 705

12, 428,026

Postal
savings *
$1,315, 523
1,417,406
1, 577,526
1,620,194
1,659, 545
1,683,381
1,715, 579
1,752,439
1,787,879
1,833,145
1,866,563
1,905,748
1,946,372
1,993,697
2,033,106

i Private repurchasable capital as reported to the F H L B Administration.
3 Month's Work. All deposits.
' F D I C . Time deposits evidenced by saving passbooks. Estimated since
June 1942.
* Balance on deposit to credit of depositors, including unclaimed accounts.
Totals since April 1944 are unaudited.

Table 1 2 . — F H L BANKS-Lending operations and principal assets and liabilities
[Thousands of dollars]
L e n d i n g operations
J u n e 1944
Federal H o m e Loan B a n k
Advances

M a y 1944

. ._.

J u n e 1943
1

Includes interbank deposits.

316




Advances
outstanding

Cash*

Governm e n t securities

C a p i t a l a n d p r i n c i p a l liabilities
J u n e 30, 1944

Capital2

Debentures

Member
deposits

T o t a l assets
J u n e 30,
1944 1

$913
659
425
593
701
1,586
545
432
601
179
142
1,386

$8,135
20,122
12,522
8,936
9,165
9,950
19, 214
8,683
4,876
5,044
2,536
19,095

$2,827
1,830
2,816
576
3,036
2,112
1,851
693
2,501
1,887
2,142
386

$12,914
19,347
7,574
8,437
22,271
11,118
13,052
9,569
8,168
7,566
5,679
6,278

$19,733
27,269
16, 639
17,705
25,385
14,221
22, 547
12,479
12,431
10,860
8,472
15, 738

$3,000
10,000
6,000
0
5,000
6,500
7,000
5,000
3,000
3,000
1,000
8,500

$1,113
4,146
335
291
4,065
2,429
4,482
1,467
50
627
874
1,481

$23,942
41,437
22,983
17,996
34, 577
23,251
34,187
19,005
15, 596
14,538
10, 386
25, 795

64,833

8,162

128,278

22,657

131,973

203,479

58,000

21,360

283,693

3,939

14,978

71,606

31,997

194,845

203, 214

64,300

29, 270

299,623

18,066

7,096

90,192

18, 272

154,932

195, 605

35,000

29, 216

264,112

$3,450
10,275
3,622
4,965
4,860
4,143
10,248
6,783
1,020
1,938
1,935
11, 594
J u n e 1944 (All B a n k s )

Repayments

P r i n c i p a l assets J u n e 30, 1944

2 Capital stock, surplus and undivided profits.

Federal Home Loan Bank Review

Table 1 3 . — I N S U R E D A S S O C I A T I O N S — P r o g r e s s of institutions insured by the FSLIC 1
[Dollar amounts are shown in thousands]
Operations
Private
repurcha sable
capital

Government
share
capital

Federal
Home
Loan
Bank
advances

$70,852
193, 452

$2, 736, 258
2,938,310

$185,783
169,167

$170,066
113,977

276, 785

376,177

186,954

580,087

302,556

581, 651

3, 270,834
3, 318,900
3,362, 380
3, 389,891
3, 435, 798
3,488, 270
3,573,896

119,252
74,568
69, 941
69, 920
69, 720
69,690
69, 693

228, 303
239, 936

788, 854
954, 934

3,710,356
3, 922, 705

1,849, 400
1,853,868

141,617
164, 430

41, 022
117, 339

2,426,079
2,408, 687
2,438,803
2,523, 737
2, 550,973
2, 580,481
2, 617, 431

1,865, 991
1,871,478
1,880, 513
1,896.312
1,908, 518
1, 915,135
1,915, 771

170, 730

235, 524

109,181

369,954

183, 038

1,466
1,465

2, 709,897
2.881, 276

1, 927,122
1, 972, 881

135, 664
148, 913

1942: J u n e
December

910
931

1, 255,307
1, 351, 703

978, 556
1,017, 773

1943: J u n e
July _
August
September
October
November
December

960
967
967
969
971
975
981

1, 454,920
1,466, 582
1,482,049
1, 514,189
1, 530,499
1, 546, 731
1, 565, 297

986
996

1, 617, 971
1, 702, 292

Number
of associations

Total
assets

N e t first
mortgages
held

Cash

2,374
2,398

$3,461,228
3,651,598

$2, 827,956
2,871,641

$219,374
256, 470

1943: J u n e
July
August
September _ _
October .
November
December

2,428
2,435
2,433
2,440
2,439
2,442
2,447

3,880,999
3,875, 269
3, 920,852
4,037, 926
4,081,472
4,127, 212
4,182, 728

2,918, 577
2, 931,482
2,946,968
2, 971, 411
2,992,823
3, 004,071
3,009, 025

1944: M a r c h . . . .
June.-

2.452
2,461

4, 327, 868
4, 583, 568

3, 035, 201
3,117. 585

1,464
1,467

2, 205,921
2. 299, 895

1,468
1,468
1,466
1,471
1,468
1,467
1,466

Period a n d class of association

Government
bond
holdings

New
mortgage
loans

N e w private
investments

Private
repurchases

$58,642
46,705

$72, 788
91, 029

$26,152
30,219

35.9
33.2

78,155
80, 904
71, 013
118,153
114, 619
104,565
100,340

76,899
77, 994
83,068
87, 878
81, 929
72,936
70,973

103,939
134,065
94, 229
83, 970
87,692
90,023
118,496

33, 704
97,117
50, 250
60,019
45,104
43,137
37,885

32.4
72.4
53.3
71.5
51.4
47.9
32.0

50,868
50,832

90,103
118, 743

87,163
105, 245

104, 494
127,945

56, 693
46, 560

54.3
36.4

1,735,932
1,882, 051

150, 776
137, 208

127, 623
84,135

35, 279
27,381

47,495
58,937

14,794
16, 530

31.1
28.0

373,325

2,060, 502
2,087, 404
2,117,053
2,135,010
2,164,155
2, 201,120
2, 257,002

96,109
58,239
55,021
55,021
55, 021
55,021
55,021

56, 553
59, 416
51, 639
87, 648
84, 983
76,034
74, 780

46, 730
48, 370
51, 172
54,100
50, 576
44,804
43, 647

68, 235
87,444
61,351
53,138
56, 490
57, 915
76, 677

19, 586
64,073
31,253
37, 274
26,825
24, 373
21, 569

28.7
73.3
50.9
70.1
47.5
42.1
28.1

509,170
620, 016

2,346,042
2,488, 785

39, 957
39,948

63,892
84, 602

53, 883
64, 474

68, 276
83, 856

36,182
25, 969

53.0
31.0

77, 757
92, 040

29, 830
76,113

1, 000, 326
1,101, 259

35,007
31, 959

42,443
29, 842

23,363
19,324

25, 293
32,092

11,358
13,689

44.9
42.7

1,052, 586
1,060,004
1,066, 455
1,075,099
1,084,305
1,088,936
1,093,254

106,055

140, 653

77, 773

210,133

119, 518

208,326

1, 210, 332
1, 231,496
1, 245, 327
1, 254,881
1, 271, 643
1, 287,150
1,316, 894

23,143
16, 329
14, 920
14,899
14, 699
14, 669
14, 672

21,
21,
19,
30,
29,
28,
25,

602
488
374
505
636
531
560

30,169
29, 624
31,896
33, 778
31, 353
28,132
27, 326

35, 704
46,621
32,878
30,832
31, 202
32,108
41, 819

14,118
33,044
18,997
22, 745
18,2^9
18, 764
16, 316

39.5
70.9
57.8
73.8
58.6
58.4
39.0

1,108,079
1,144,704

92, 639
91,023

279, 684
334,918

1, 364, 314
1, 433,920

10,911
10, 884

26,211
34,141

33, 280
40, 771

36, 218
44,089

20, 511
20, 591

56.6
46.7

Repurchase
ratio

ALLINSURED

1942: J u n e
December

__

_ _ _ _ -

FEDERAL

1942: J u n e
December

_.

1943: J u n e
July
August,.
September
October
November
December

'_
.

_
._

_-

1944: M a r c h June
STATE

_ _
______

1944: M a r c h
June
1

This table is now published in full only in February, May, August and November.

Table 1 4 . — F H A — H o m e mortgages insured 1
[Premium paying; thousands of dollars]

Title I I
Period

Title VI
New

Existing

Total
insured
at end of
period 2

1943: June
July
August
September
October...
November.
December.

$2,606
2,424
1,563
1,479
818
833
747

$16,759
18, 502
18, 519
18, 737
18,856
20,499
17.401

$41,629
43,445
49, 518
46, 365
48, 571
48,421
42,979

$5,026,396
5.090,767
5,160. 367
5, 226,948
5,295,193
5, 364,946
5,426, 073

1944: January...
February..
March
April
May
June

592
249
250
130
81
81

18,397
13,795
12, 729
13, 200
18, 319
17,768

49,003
40, 616
41,620
36,793
37,739
34,238

5,494, 065
5, 548, 725
5,603, 324
5, 653,447
5,709, 586
5,761,673

i Figures represent gross insurance written during the period and do not take
account of principal repayments on previously insured loans.
* Includes Title I, Class 3, amounts that were shown prior to January 1943.

August 1944




Table 15.—FORECLOSURES—Estimated nonfarm real-estate foreclosures, by Federal
Home Loan Bank Districts
Cumulative
(6 months)

Foreclosures
Federal Home Loan
Bank District
June
1944

May
1944

April
1944

June
1943

Jan.June
1944

UNITED STATES.

1,564

1,535

1,325

2,217

9,190 14,179

Boston
New York
Pittsburgh
Winston-Salem.
Cincinnati.-.-..
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
Portland
Los Angeles... _

135
465
320
195
85
30
63
97
41
64
13
56

132

179
388
227
132
86
26
58
66
26
56
18
63

282
642
359
270
156
45
109
119
61
71
17
86

195
100
32
95
96
27
63
8
49

1,191
2, 529
1,593
986
729
178
476
515
214
345
67
367

Jan.PerJune
cent
1943 change

1,405
3,801
2,419
1,710
1,121
292
804
873
470
527
139
618

-35.2
-15.2
-33.5
-34.1
-42.3
-35.0
-39.0
-40.8
-41.0
-54.5
-34.5
-51.8
-40.6

317

FEDERAL HOME LOAN BANK DISTRICTS

-(Q0>

m
$

i BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEDERAL HOME LOAN BANK CITIES.

OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON

CHICAGO

B. J. ROTHWELL, Chairman; E. H. WEEKS, Vice Chairman; W. H.
NEAVES, President; H. N. FAULKNER, Vice President; L. E. DONOVAN,

C. E. BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman; A. R.

Secretary-Treasurer; P. A. HENDRICK, Counsel; BEATRICE E. HOLLAND,

Assistant Secretary.
NEW

YORK

GEORGE MACDONALD, Chairman; F. V. D . LLOYD, Vice Chairman;
NUGENT FALLON, President; ROBERT G. CLARKSON, Vice President;
DENTON C. LYON, Secretary; H. B. DIFFENDERFER, Treasurer.

PITTSBURGH
E. T. TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; R. H. RICHARDS, PRESIDENT; G. R. PARKER, Vice President; H. H. GARBER, Sec-

retary-Treasurer; WILLIAM S. BENDER, Counsel.
WINSTON-SALEM
H. S. HAWORTH, Chairman; E. C. BALTZ, Vice Chairman; O. K. LaROQUE, President-Secretary; Jos. W. HOLT, Vice President-Treasurer.

GARDNER, President; J. P. DOMEIER, Vice President; LAURETTA QUAM,

Assistant Treasurer; CONSTANCE M. WRIGHT, Secretary; GERARD M.
UNGARO, Counsel.
D E S MOINES
E. J. RUSSELL, Chairman; E. A. PURDY, Vice Chairman; R. J. RICHARDSON, President-Secretary; W. H. LOHMAN, Vice President-Treasurer;
J. M. MARTIN, Assistant Secretary; A. E. MUELLER, Assistant Treasurer; EMMERT, JAMES, NEEDHAM & LINDGREN, Counsel.

LITTLE

ROCK

B. H. WOOTEN, Chairman; W. P. GULLEY, Vice Chairman; H. D .
WALLACE, President; J. C. CONWAY, Vice President; R. T. PRYOR,
Secretary; W. F. TARVIN, Treasurer.
TOPEKA
P. F. GOOD, Chairman; A. G. HARTRONFT, Vice Chairman; C. A. STERLING, President-Secretary; R. H. BURTON, Vice President-Treasurer;
JOHN S. DEAN, General Counsel.

CINCINNATI

PORTLAND

HARRY S. KISSELL, Chairman; "WM. MEGRUE BROCK, Vice Chairman;

BEN A. PERHAM, Chairman; H. R. GRANT, Vice Chairman; F. H .
JOHNSON, President-Secretary; IRVING BOGARDUS, Vice PresidentTreasurer; Mrs. E. M. JENNESS, Assistant Secretary; VERNE DUSENBERY, Counsel.

WALTER D. SHULTZ, President; W. E. JULIUS, Vice President-Secretary;
A. L. MADDOX, Treasurer; TAFT, STETTINIUS & HOLLISTER, General

Counsel.
INDIANAPOLIS
H. B. WELLS, Chairman; F. S. CANNON, Vice Chairman-Vice President,
FRED. T. GREENE, President-Secretary; G. E. OHMART, Vice PresidentTreasurer; HAMMOND, BUSCHMANN, ROLL & ALEXANDER, Counsel.

Los

ANGELES

D. G. DAVIS, Chairman; C. A. CARDEN, Vice Chairman; M. M. HURFORD, President; -C. E. BERRY, Vice President; F . C. NOON, SecretaryTreasurer; HELEN FREDI PICKS, Attorney.

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