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FEDERAL
HOME
LOAN
BANK
Vol.
11, No. 11
Washington, D. C.
AUGUST 1945
"The housing needs of our country today constitute one of our most challenging obligations,
but there is ample evidence that there is a widespread
awareness of those needs and a full readiness to take
up the task of meeting them."
FEDERAL HOME LOAN BANK
Contents
V
Page
RENT CONTROL A N D REAL ESTATE STABILIZATION
JUL
By Ivan D. Carson, Deputy Administrator for Rent, Office
of Price Administration
311
SHOULD COMMISSIONS BE PAID TO SECURE S A V I N G S
ACCOUNTS?
By Ralph H. Richards, President, FHL Bank of Pittsburgh.
AUGUST 1945
The Federal Home Loan Bank Review
is published monthly by the Federal
Home Loan Bank Administration under
the direction of a staff editorial committee. This committee is responsible
for interpretations, opinions, summaries,
and other text, except that which appears in the form of official statements
and signed articles.
Each issue is written for executives of
thrift and home financing institutions,
especially those whose organizations are
insured by the Federal Savings and
Loan Insurance Corporation and are
members of the Federal Home Loan
Bank System.
Communications
concerning
315
H O M E BUILDING IN TRANSITION
318
OPERATING STATEMENTS O F MEMBER ASSOCIATIONS
A n analysis of ratios of all savings and loan members
319
STATISTICAL D A T A
New family dwelling units
Building costs
Savings and loan lending
Mortgage recordings.
Sales of U. S. war savings bonds
F H A activity
Federal Home Loan Banks
Insured savings and loan associations
Foreclosures
Savings held by institutions
332-333
. * 333-334
334-335
335-336
336
336
336
337
337
337
REGULAR DEPARTMENTS
Directory Changes of Member, Federal and Insured Institutions
Worth Repeating
Monthly Survey
Home Front
322
323
325
338
material
which has been printed or which is desired for publication should be sent to
the Editor of the Review, Federal Home
Contents of this publication are not copyrighted
Loan Bank Building, Washington 25,
D. C.
•
•
•
The Federal Home Loan Bank Administration assumes no responsibility for
material obtained from sources other
than itself or other instrumentalities of
the Federal Government.
310
SUBSCRIPTION P R I C E OF REVIEW.—A copy of the REVIEW is sent to each member and insured institution without charge. To others the annual subscription price, which covers the cost
of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States,
Canada, Mexico and the insular possessions, subscription price is $1.60; single copies, 15 cents.
Subscriptions and orders for individual copies should be sent with remittances to the Superintendent
of Documents, Government Printing Office, Washington 25, D. C.
APPROVED BY THE BUREAU OF THE BUDGET.
Federal Home Loan Bank Revie
RENT CONTROL AND REAL ESTATE
STABILIZATION
The importance of rent control operations makes the subject one of
widespread interest.
This article discusses the purposes, scope and
wartime accomplishments under the Rent Stabilization Act in relation
to the entire anti-inflationary
program.
By IVAN D. CARSON
Deputy Administrator for Bent
Office of Price Administration
•
T H E migration of hundreds of thousands of
people has been one of the significant aspects of
the home front during World War I I . They have
come from towns, villages and farms to the Detroits,
Mobiles and Hartfords to help build the planes,
tanks and shells. Many a small town which before
the war was going along placidly in a fixed economic
pattern has become overcrowded, a boom town
overnight, because of the location of an army camp
or flying field nearby.
A few examples will show the magnitude of this
migration. From 1940 to 1944 the population of the
Norfolk-Hampton Roads area in Virginia, with an
increase of over 300,000, nearly doubled in population. I n the same period the population of the
Detroit-Willow Run area increased by over 200,000,
Los Angeles by 518,000, and the San Francisco Bay
area by 583,000. The San Diego area rose 110
percent, Mobile 68, Charleston, South Carolina 57,
and San Francisco 40 percent.
Housing in these cities, towns and villages has been
jammed to the bursting point. Vacancies literally
are non-existent. When a family moves there are
five waiting to move in. I t is not difficult to
imagine what would have happened if the Congress
had not wisely decided that rents must be controlled.
Rent comprises from 17 to 18 percent of the cost
of living. Food is the only other item which looms
larger in the average American family's budget.
Shelter is one thing which the American family
can't give up. If the price of most other items in the
cost of living increases we can change our buying
habits and cut down here and there. This can't be
done so readily with rent. We have to have a roof
over our heads and, with housing as tight as it is now,
we simply can't move to cheaper quarters when rent
increases stare us in the face. We should keep in
mind also that some 20,000,000 of our citizens are
August 1945
living on fixed incomes and have not benefited from
increased wartime earnings. As an increasing number of married men and those with dependents have
been called into the service, the number of families
living on fixed military allotments has grown.
These are some of the reasons why rent increases
become especially significant in the average family
budget, and why the control of rents is one of the
most important parts of the over-all program to
curb inflation.
The really surprising stabilization record achieved
during this war would not have been possible without
effective rent control. A break in rents would have
brought other breaks all along the line.
Accomplishments
Before discussing rent stabilization as it has
affected real estate, I should like to point out certain
aspects of rent control which I'm sure have not
occurred to many of us. I t has made a substantial
contribution to war production. Certainly this
will be obvious when we stop to consider that the
accomplishment of new production quotas each
month is not compatible with skyrocketing rents
and unwarranted evictions. Constantly rising rents
and threats of eviction would have made it impossible to recruit and hold the labor required to
man our war production plants.
In his testimony before the House Banking and
Currency Committee in the spring of 1944, when
hearings were being held on the renewal of the
Price Control Act, Under Secretary of War Patterson
told the Committee: " I am speaking of labor, of
course, in war industry, in which the Army is interested in the output of the plant. I t has been reported again and again that needed in-migrant
workers could not have been secured for congested
war production centers or for isolated Army establishments if rent controls had not been set and enforced. Workers will not migrate if an increase in
housing expenses will wipe out any financial advantages to be gained, or result in a net loss of
311
income. Under rent control, workers have been able
to move into war centers without fear of inflated
rentals or unreasonable evictions. In some communities the establishment of rent controls was the
turning-point from failure to success in getting recruits from other areas."
The morale of our service men and their families
is a matter of great concern to every one of us.
Under Secretary Patterson called attention to the
important contribution that rent stabilization has
made in this regard: "Army representatives have
repeatedly attested to the favorable influence of rent
control upon the morale and welfare of military and
civilian personnel. Time and again representatives
of the War Department have had occasion to refer
Army personnel to local rent control offices which
have effectively dealt with justifiable complaints and
cases of undue hardship, and have successfully
handled rent adjustments, postponements in evictions
and like problems. The commanding officer of one
installation has expressed the opinion that the Rent
Control Branch of OPA has contributed more to the
morale of his personnel, both military and civilian,
and to the efficient operation of his station than any
other civilian government agency/'
Most of you who will read this, or the institution
which you represent, have been affected directly by
rent control. Many of you have been irked by some
of the requirements of the rent regulations. For
this reason I have briefly called attention to some of
the over-all purposes that have been accomplished
by the Office of Price Administration. War is not
pleasant and to win a war such as this one, requires
all of us to pitch in and do many things and make
certain sacrifices that are completely foreign to our
peacetime way of living.
Scope of Operations
Before taking up certain aspects of the subject,
such as the operating results of rental housing under
rent control, the long run advantages of rent stabilization and certain disturbing trends in the general
over-all picture, I should like to mention briefly
some significant facts showing the size of the rent
control operation. This is important because generally we think only of rent control in our town and
we have no real conception of the size of the job
nationally. Close to 16,000,000 units have been
registered with OPA and over 500,000 hotels, rooming
houses and tourist courts. Rents are controlled in
487 areas with a total population of over 90,000,000.
Approximately 600,000 individual rent adjustments
312
have been made and over 1,000,000 landlord petitions
acted upon. The first areas were put under control
in June 1942, and the pressures for extending controls to new areas are continuing even though victory
in Europe has been won. Rent control in the
United States is no small undertaking.
In spite of the magnitude of the job the rent line
has been held. The Bureau of Labor Statistics rent
index shows an increase of only 3.7 percent since
September 1939. From September 1939 to M a y
1942, rents rose 5.3 percent. With the installation
of rent control in 20 areas in June 1942, the index
was rolled back 1.3 percent. A further decline of
0.5 percent took place between June and July 1942,
and since then the index has risen only slightly.
Effects on Rental Housing
To determine how the control of rents has affected
the operation of rental housing, the OPA, beginning
early in 1942, has made detailed surveys of the actual
operation of rental property throughout the country.
These surveys have been made in some 70 representative cities and cover figures on income and expense of
about 200,000 rental units. They are made periodically to determine the extent of shifts in income and
expense which have taken place. Accountants of
the OPA gather the data directly from the books of
account for rental properties made available through
the cooperation of local real estate boards, banks,
property management organizations and individual
property owners.
The accountants' reports show that the operations
of both apartment houses and small structures have
been much more profitable under rent control than
in the prewar years. Our most recent survey covers
the operations of apartment houses in 28 cities and
small structures in 27 cities during a period of two
years under rent control through June 30, 1944.
For the year ending June 30, 1944, the net operating
income, before interest and depreciation, for apartments was 34 percent higher than 1939 and for small
structures the increase was close to 45 percent.
This is the result of several factors. Operating
costs remained practically stable in apartment houses
from 1939 to 1944, and even declined in the case of
small structures. This rather surprising trend in
expenses has resulted largely from reductions in
competitive outlays, such as frequent painting and
decorating, and a slight decline in real estate taxes.
Taken together these reductions have been more than
sufficient to offset the rise in materials and labor
costs. Furthermore, the tight housing market has
Federal Home Loan Bank Review
virtually eliminated vacancy losses. As a result,
while rents have been held to 3.7 percent since
September 1939, rental income has advanced better
than 12 percent since 1939. All these factors explain
the large increases in net operating incomes since
1939.
OPA surveys of the operating of rental housing
are made in terms of net operating income before
interest and depreciation, not in terms of true net
income. This is necessary because, in general,
operators' books do not show depreciation or interest. By using net operating income, however, we
have understated greatly the favorable trend in the
financial returns of rental housing. The reason for
this, of course, is that interest and depreciation have
remained relatively stable or have declined over this
period, while net operating income has increased
sharply.
Sample studies of net income as contrasted to net
operating income (before interest and depreciation)
have been made for apartment house operations
where figures on these items are available. In each
case the percentage increase in net income since 1939
has been much greater than in net operating income.
For example, a survey of some 2,300 units in Los
Angeles, where interest and depreciation figures were
available, showed an increase of 140 percent in net
income as compared to an increase of 22 percent in
net operating income.
The operation of rental housing under rent control
follows the same trend as the operation of business
and industry generally under price control. The
earning position of landlords generally is substantially better than in prewar years. Some have felt
that because the rise in rents has been held down to
only 3.7 percent while a number of other prices have
had larger increases, the Office of Price Administration has discriminated against rental property.
This contention is based on the assumption that if
prices do not go up, earnings must stay low. The
experience of business and industry in peacetime
and during the war proves that this assumption is
false. The experience of rental property itself, as
revealed in the results of OPA surveys just quoted,
shows that the contention is wrong. It is also true
that a comparison of the earnings of rental property
with the earnings of other businesses will show that
rent control has not been discriminatory.
I t is not difficult for those of us who went through
the catastrophe of the early thirties to imagine the
havoc which would follow this period if rents had
not been controlled or if the control had been inefAugust 1945
fective. Constantly mounting rents accompanied
by chains of sales at higher and higher prices would
have followed and real estate would be headed for
another collapse. We learned in the thirties how
far reaching can be the effects of a collapse of the
real estate and mortgage markets.
Other Inflationary Dangers
While rents have been effectively stabilized, it
should not be assumed that the dangers of inflation
in the field of real estate have thus been eliminated.
Rent control has served as a brake, but because the
sales prices of real estate have remained uncontrolled, pressures have accumulated to such an
extent that we are now in a period of inflated sales
prices. Unmistakably, we are headed for trouble.
Little housing has been built in the past five
years. Yet in no previous period has there been
such a demand for housing. This pressure alone
has been sufficient to send prices soaring. Furthermore, national income is the highest in our history
and more people have money to spend for homes
than has been true in any previous period.
In rent control we have a good opportunity to
observe what is happening. For example, we have
seen the number of certificates of eviction issued in
connection with sales double in 1944 as compared
with 1943. During the first quarter of 1945 the
number of certificates issued was a third larger than
in the same period in 1944. Daily there is evidence
of tenants all over the country being forced to buy
to keep a roof over their heads. Many of them are
in-migrant workers who may or may not become
permanent residents of the community. They are
not willing purchasers. Such purchases at today's
inflated prices make no contribution to the progress
and broad objectives of home ownership. Just the
opposite is true.
Inflationary sales prices are not confined to the
field of single-family structures. Multi-unit properties are being sold, in spite of controlled rents, at
prices which will prove to be uneconomic when
operations settle down to a more normal basis.
There are instances where the same apartment
buildings have been sold a number of times in the
same year—each time at higher prices. I t is not at
all uncommon for an area rent director to have to
send a notice to four or five parties before it reaches
the current owner.
To the short-range thinker everything is great.
Income from commissions gets bigger and bigger.
Deals are easy to turn and profits go higher and
313
higher. But we know that such booms eventually
go " b u s t " and a great many people and institutions
get badly hurt.
Operators of lending institutions can help keep
inflation from going further. In this period, selfprotection demands the exercise of great care in
mortgage lending. I t is so often true, however,
that conservative lenders are eventually forced by
less responsible competition to relax their vigilance
in order to stay in business. I t is because of this
and because of the increased volume both of cash
purchases and of mortgage lending by individuals,
that a form of control is necessary if the job of
keeping prices from getting further out of hand is
to be accomplished.
A revision of the capital gains tax has also been
suggested. A combination of more effective credit
control and higher capital gains taxes might well
prove sufficient to halt the growing excesses. We
should remember that frozen real estate assets
resulting from the boom and collapse of the twenties
and early thirties were a major factor in the crisis
of banks and other lending institutions in the last
depression. A program of control to avert a repetition of that story should receive wholehearted support in the mortgage lending and real estate fields.
Trends in Estimated Liquid Resources
•
Proposed Controls
A number of plans for control have been discussed.
Obviously the control of real estate prices presents
difficult problems. For example, prices as of a
certain base date chosen for the purpose of holding
prices to a previous level do not exist for all properties
offered for sale today. In other words, real estate
is not marketed as are automobiles. An owner of
a house or apartment building may own it for years
with no thought of selling. If he decides to take
advantage of today's high prices and sell, he will
start out with a certain price, but the house may
have had no price on January 1, 1942.
In spite of the difficulties involved in adapting the
principles of price control to real estate, the job could
be reasonably well done and the line generally could
be held by prohibiting transfers at prices in excess of
those obtained for comparable properties in a period
selected for purposes of stabilization. There are a
sufficient number of sources of informed opinion in
communities throughout the country which could
be utilized. Certainly if such control had been in
effect during the past two years we would not be
faced with the potentialities of real estate trouble
in the postwar period nearly to the same extent as
we are today.
Another proposal is to restrict real estate credit.
Stiff down payments and possibly shorter periods of
amortization could be required. This proposal may
be more practicable at the present time than direct
control of selling prices. If put into effect, much
good should be accomplished. The excessive prices
buyers are now able to pay for housing would be
substantially reduced, and at the same time sales
to buyers able to meet the restricted credit terms
would be less likely to end in foreclosure.
314
R E C E N T L Y , the Board of Governors of the
Federal Reserve System released its preliminary
estimate of the liquid asset holdings of domestic
business and individuals. While extremely tentative,
the magnitude of change provides an adequate ruleof-thumb gauge of the improved position of both
business and individuals to stimulate trade in postwar
markets. Holdings of all governmental units, foreigners, insurance companies, savings and loan
associations and banks have been excluded.
As of the end of the calendar year 1944, total liquid
holdings (currency, demand and time deposits, and
U. S. Government securities) are placed at $193,600,000,000, standing almost three times as high as in
December 1939. Personal holdings, excluding those
of trust funds, are believed to have totaled $114,900,000,000, having increased more than two and
one-half times during the five-year period.
Federal Home Loan Bank Review
SHOULD COMMISSIONS BE PAID TO SECURE
SAVINGS ACCOUNTS?
From time to time a few savings and loan associations, by attracting
savings through brokerage" channels, have deviated from the customary
policy of exclusively personalized service. The following article
points out the dangers of this practice which is alien to the savings
and loan function.
By R A L P H H . R I C H A R D S , President
Federal Home Loan Bank of Pittsburgh
•
I t should be said at the outset that this article
will take a position which is unqualifiedly opposed to the payment of commissions under any
circumstances for the purpose of attracting share
capital to savings and loan associations. The point
of view is one which has been reached not only
after careful consideration, but also after many
years of observing the experience and possible
consequence of this type of money and the manner
in which it is attracted; namely, through commission
brokers who are located, in many cases, long distances from the association's place of business and
who have no direct interest whatsoever in the success
or future welfare of the institution.
Savings and Loans—A Local Enterprise
All of us know that savings and loan practices
have undergone many changes during the past 15
years; that the over-all pattern of today is a far cry
from that which prevailed even in 1929. Since that
time we have seen the enactment of the Federal
Home Loan Bank Act, the setting up of the Federal
Savings and Loan Insurance Corporation, legislation
enabling the chartering of Federal savings and loan
associations and provision for insuring mortgages
through the facilities of the Federal Housing Administration. All of the acts mentioned are national
in scope, but along with Federal legislation have also
come progressive changes in the laws of our individual states. Legislation provides only a foundation which must be built upon and developed by
management. To put it briefly, we are getting
away from the older type sinking fund, serial, onenight-a-month stand, which prevailed in many sections of the country. I n its place, we now have
units' of considerable size together with exclusive
operation in well equipped and dignified offices.
This does not in any sense of the word mean that
the fundamentals of our business have changed one
August 1945
iota. No matter how large the association or how
elaborate its quarters, the fact remains it is still designed to take care of the savings and home financing
needs of the territory in which it operates. Indeed,
the local nature of a savings and loan association has
been one of the cardinal and outstanding features of
these institutions since their inception. In truth,
the title of the present United States Savings and
Loan League originally contained the word "local."
Therefore, we must proceed from the thesis that the
operations of such institutions should be geared
primarily to serve the local communities in which
they are doing business.
This means then that share capital should come
in the main from the savers of the community and
that such funds should be loaned on the security of
homes in the same neighborhood. Obviously, this
theory does not preclude the acceptance of funds
from former residents who have moved to other
neighborhoods nor, for that matter, from savers in
other parts of the country who voluntarily and with
good reason, on their own initiative, desire to open
share accounts in a given association. I t does,
however, preclude the solicitation of funds through
far removed commission brokers who have access to
pools of investment money.
Implications of Commissions
When our savings and loan associations adopt a
policy of offering commissions for share capital, it
must be considered an admission of failure on the
part of management to become well enough established to attract sufficient local funds to take care
of mortgage loan demands, or it must be concluded
that management has a desire to achieve rapid
growth for the sake of growth itself. Any fairminded person surely will admit that a savings and
loan association should be as large or as small as is
dictated by the needs of the community in which it
operates. If the neighborhood will support an institution of substantial size or if the community is
growing rapidly, it follows that the association, un315
der proper management, will grow rapidly. This
does not mean, however, that safety should be sacrificed for growth. In other words, the term
"growth" should be synonymous with expansion on
a financially sound basis.
From time to time, literature comes from the pens
of brokers, some of whom are aspiring to operate on
a nationwide basis, while others confine themselves
to a reasonable radius from their headquarters office.
Some of the literature released from such sources
goes so far as to declare the minimum rate of dividend which an association should pay. For example,
" . . . Steps should be taken at once to build up
totals of share capital to meet the tremendous
demands immediately ahead, and dividend rates
should not be below 3 percent because of an urgent
need for institutional accounts to meet these loan
demands. . ." It matters little to the broker
whether the customer can either afford or find it
necessary to pay a rate as high as 3 percent. Ordinarily such literature also implies that money from
this source is more stable than funds received from
local investors. I t would seem that such tracts are
designed purely for sales purposes since there are no
conditions at the present time which subject the
stability of this type of money to a real test. I t
must be remembered that the brokerage notion has
developed on a rather wide scale in the past few
years, during which period the national income and
therefore national savings have been on the increase.
Hence, there can be no real test of the relative
stability of brokers' money vs. local voluntary investment until the reverse situation occurs when many
people who are now "in the money" will need to
withdraw their investments for various purposes.
Until that time comes, there can be no factual basis
for comparing the stability of different types of
investment funds.
This much is certain, and it has been determined
from actual experience, that money received from
faraway brokers can be " h o t money." There have
been cases, which can be authenticated, where the
same investment appeared in as many as three
different institutions within the period of two years.
To be sure, "one bird does not make a summer,"
and, therefore, a few cases of this sort cannot be used
to condemn all money raised by this method. However, it must be admitted that the temptation is
there and brokers are in business on a strictly commission basis; therefore, the more frequently funds
are reinvested, the more often the broker receives a
commission.
316
A Personalized Business
Undoubtedly some proponents of the philosophy
of paying for share capital will inquire as to why
the savings and loan business must be made so pure
when other types of institutions operate by paying
commissions for the purpose of securing new business . . . for example, life insurance companies and
other institutions in the business of selling investment contracts. The answer is very simple. Savings and loan associations are local financial institutions dealing in a direct aud intimate way with their
customers; their doors are open during business
hours for the purpose of both receiving savings and
lending money. On the other hand, life insurance
companies and the so-called investment contract
companies operate on a commission basis with a
headquarters office, selling investments entirely
different from the share account in a savings and
loan association. The customer contact is not
intimate, but through agents and brokers usually
far removed from headquarters. Thus, we must
conclude that any such contention is not a fair one
since like financial organizations are not being compared.
The Desire To Grow Rapidly
Perhaps the most compelling reason for associations' management raising money by the commission
method is prompted by the desire to grow rapidly.
If this policy is actuated by such a desire, then the
association is bound to be drawn into a vicious circle
fraught with many adverse possibilities. First of
all, the association wants to grow and outstrip its
competitors. I t "steals a march" by offering commissions to one or more brokers for share capital.
The brokers immediately advertise in metropolitan
newspapers and circularize a list of potential investors. This results in the broker writing to a large
number of individuals on behalf of the association
and speaking for it just as though he were an official
of the institution.
Such literature, by its very nature, must have something to say about the association itself, its policies,
and particularly its dividend rate. In discussing
the dividend rate the broker is likely to make an
implied promise that a certain rate will be maintained indefinitely. Ordinarily, the stated rate is a
comparatively high one. Once the association has
obtained a substantial amount of money through
such representations (or should it be misrepresentations?) its management is then reluctant to effect a
reduction in dividend rate even when necessary, for
Federal Home Loan Bank Review
fear it will result in the wholesale withdrawal of
funds. I t follows, therefore, that associations will
hold up dividend rates to the bitter end, lest a
downward adjustment prove to be disastrous.
I t seems quite inconsistent for association managers to insist that brokerage money is not " h o t
money/' yet in the next breath express apprehension
about a downward movement in the dividend rate
for fear it might result in a "flight of capital." If
the desire to grow demands a maintenance of a comparatively high dividend rate for a period beyond
which it can be justified on the basis of sound financial considerations, then certainly the association's
future security is being jeopardized. P u t simply,
it means such an association will not be able to provide the reserve which it should have to take care
of any future eventuality.
Other Effects
A plethora of capital occasioned by the payment
of commissions does something else. I t encourages
the making of mortgage loans on a large scale,
simply because surplus capital in the hands of some
officials might be compared to a small amount of
change burning a hole in a little boy's pocket. In
the desire to utilize such funds quickly there is every
temptation for management to get into the field of
unsound lending. Could a more unhappy situation
be contemplated than that of an institution which
has grown rapidly with purchased capital during the
past few years in a rapidly rising real estate market,
finding itself in a reverse position; a high established
dividend rate which the out-of-town shareholders
have come to expect, a large volume of questionable
high percentage loans on its books, and only meager
reserves? Such a combination in a declining market
or in a depression, spells almost certain disaster.
Nor are the above the only possible consequences.
I t must be remembered that commissions cost money.
For example, the typical rate is 1 percent for the
first year. An association which raises a million
dollars in this manner will be forced to incur an outlay of $10,000 to receive such funds. If the association, as is usually the case, is paying a comparatively
high rate of dividend it may be that the rate is
higher than the interest rate for advances charged
by the Federal Home Loan Bank of which the
association is a member. To illustrate, if an association is attempting to maintain a 3K percent dividend
rate while the bank is charging but 2% percent, it
results in a differential of 2 percent on such funds
for the first year, or $20,000 over and above what
August 1945
659443—45
would be paid to its Federal Home Loan Bank in the
form of interest.
Not for a minute is it meant to advocate that
funds from the Federal Home Loan Bank should be
other than a temporary substitute for private share
capital. I t is axiomatic that an association over a
period of time should be able to operate normally,
meet withdrawals and demands for mortgage money
with funds received from private investors and loan
repayments. However, it is also a well established
fact that savings and loan operation is one of unbalance. At certain times there is too much money
coming in and at other times not enough. Therefore,
the Federal Home Loan Banks should be used to
smooth out these unbalanced periods, and for a
limited period of time such funds can and should
take the place of private share capital invested for the
most part by local citizens.
A savings and loan association is a financial institution. Management should be zealous of its reputation and should leave nothing undone to build upon
sound operating policies over the years. I t follows
that the association should be staffed with officers
and employees of proven ability and integrity, that
the representations made by such staff members
should be such that will always redound to the
benefit of the association and enhance its prominence
and dependability in the eyes of the community.
How then can any management, looking toward the
future, afford to permit its wares to be advertised by
brokers, no matter how well intentioned or honest,
who perhaps have never met the Board of Directors
or stepped inside the quarters of the association?
Moreover, the investors obtained by this method
have no personal interest whatever in the affairs of
the association or the community it represents.
In the very nature of the transaction, the funds
which they invest are invested because they bring a
comparatively high rate of return. If this assumption is true, then does it not logically follow that
such money will " t a k e flight" as soon as the rate is
adjusted downward and attempt to find refuge in
some other high dividend association? How can
any advocate of the practice argue for a minute that
such funds will not be withdrawn if they came to the
association in a purely impersonal way and were
attracted only by the rate of return?
I t must, therefore, be concluded that the receipt
of large sums of money through outside brokers must
result in certain disadvantages to the association, a
(Continued on p. 331)
317
2
HOME BUILDING IN TRANSITION
•
T H E country today is moving toward the reconversion of its industrial plant to peacetime
production. Naturally, an undertaking of this kind
which is started while the war is still in progress must
be surrounded by many uncertainties. Nevertheless, the War Production Board and the National
Housing Agency have been able to reach a definite
agreement on a goal of 400,000 dwellings to be placed
under construction ( H - l , H - 2 and H-3) during the
12 months through June 1946. While this represents a volume of building in excess of the average
rate for the decade preceding the war, both the W P B
and N H A have expressed the opinion that it is within
realistic limits.
To reach this anticipated volume of residential
building during the period specified, about 165,000
units will have to be put under construction during
the last half of 1945. Of these, 158,000 would be
built with priority assistance and 7,000 would be
started on the authority of unrated construction
certificates (without priorities).
As of the first part of July, there were in the hands
of builders rated certificates for the erection of 73,000
privately financed homes upon which work had not
then begun, while priorities for another 45,500 were
then available. I n addition to these, the NHA was
authorized to issue certificates and priority assistance
for the building of 98,000 residential units during the
balance of the calendar year. The great bulk of
these are to be for privately financed construction.
If the schedule of starts is maintained through
December, about 203,000 privately financed units
will have been placed under construction during 1945.
A total of 32,000 unrated construction certificates
may be issued now by the state and district offices
of F H A in communities where no H - 2 construction
has been authorized. However, this building, which
will be subject to statewide price and rental ceilings
established by NHA regional representatives, cannot
be started before October 1.
According to the determination by the WPB, unrated certificates for 106,000 homes may be issued by
N H A during the first quarter of 1946 and approvals
for the construction of 119,000 units may be granted
in the second quarter of next year. In announcing
this program for the "reconversion" of the building
industry, the N H A emphasized the difficulties
builders may face even with the availability of programs and priorities. Serious shortages of lumber
318
and other building materials, as well as difficulties
in attracting sufficient skilled labor, may retard
activity in a number of localities. Also, it should be
understood that the issuance of authority to build
does not mean that construction will start immediately, since sites must be secured, plans drafted and
materials acquired. However, present programming indicates that, so far as possible, the way has
been cleared for the builder.
Plans for the period of transition to peacetime
home building were first drafted early in the spring
of 1944, and as soon as military requirements permitted, authorizations under the H - 2 and H - 3 programs moved ahead. In order to permit builders
to take advantage of this year's building season, the
greatest part of the year's programming was accomplished during the first six months. Approvals of
new programs during the last half of the year will
be granted with a view to giving particular assistance
to the more seriously war-crowded communities.
Priorities
According to the recently revised regulations covering the issuance of priorities for residential construction for relief in cases of personal hardship, such
applications will be handled under the H - 2 program.
Such houses, if sold or rented, will be subject to the
H - 2 price or rental ceiling. These ceilings on sales
generally range from $6,000 to $7,500, with a top of
$8,000 only in areas where it is recognized t h a t
building costs are such as to require the maximum
to permit construction of a standard three-bedroom
house. Rental ceilings are at corresponding levels.
In areas where no H - 2 quotas have been established, statewide ceilings will apply. These will be
established by N H A regional representatives. The
maximum for all but exceptionally high-cost areas
will be $7,500 for sale and $62.50 for rental.
During the war, publicly financed housing has been
produced exclusively to meet the needs of migrating
war workers. The bulk of this housing has been
completed. Prewar low-rent projects which were
suspended during the war total some 25,000 units,
about one-third of which are in war-congested areas
and thus may be eligible for construction under the
H - 2 program. Any additional low-rent public
housing will depend on Congressional action and
upon requests for Federal aid.
Federal Home Loan Bank Review
OPERATING RATIOS OF MEMBER
SAVINGS AND LOAN ASSOCIATIONS
The 1944 operating statements of all member sayings and loan associations show a continuation of most of the trends apparent during
the previous year. Reduction of income from mortgage loans was
again evidentf coupled with a large gain in revenues from bond
holdings. Reserves absorbed a growing proportion of net income.
•
W A R T I M E influences on the amount and composition of savings and loan association assets
and liabilities were again reflected in the income and
expense patterns of these institutions. This analysis
of the 1944 operating statements of all savings and
loan members of the Bank System, which supplements last month's discussion of their combined
balance sheet, rounds out the picture for the past
year. Both of these studies show that, despite the
numerous abnormalities of operations during the
war, these associations maintained a strong position
for the tests that will come with reconversion and
peace.
During 1944, the gross operating income of the
3,652 reporting associations totaled $269,898,000.
Operating expenses amounted to $76,000,000, of
which almost half ($37,164,000) went for compensation to directors, officers and employees. The net
income reported by these associations aggregated
$195,471,000 after allowing for interest on borrowed
money and for non-operating income and expense
items. Dividends (including interest on deposits
and investment certificates) accounted for $137,750,000, while $57,721,000 was allocated to reserves
and undivided profits.
All these dollar amounts represented increases
over like items of 1943 operating statements. However, in order to facilitate comparison with previous
years, this study is based on operating ratios rather
than on dollar changes. This provides a measure of
the proportionate amounts of income and expense
items in relation to gross operating income and is,
therefore, not affected by the fluctuating numbers
of reporting institutions. Table 1 presents a summary of these ratios.
Income Pattern
An analysis of the sources of income during 1944
shows an accentuation of the previous year's warinduced pattern. For the second consecutive time,
interest from mortgage loans—the principle source
August 1945
of savings and loan revenue—accounted for a
diminishing proportion of gross operating income.
Of each $100 received by these reporting institutions,
only $84.14 came from interest on mortgage loans,
considerably less than the $87.44 received in 1943
and the $89.33 in 1942. This condition reflects the
dwindling rate of effective interest on mortgage
portfolios and the declining ratio of loans to assets
which have been evident during the past two years
in spite of the increase in lending activity. As long
as wartime influences of curtailed construction and
heavy prepayments on loans continue, this trend
can scarcely be expected to be reversed.
While income from the portfolio of mortgage loans
has continued to represent a smaller proportion of
gross operating income, yields from Government
security holdings have shown a proportionate increase
in prominence, this trend being perhaps the most
outstanding feature of 1944 operations. Last year's
earnings from this source accounted for $7.38 out
of each $100 of gross operating income compared
with $3.32 in 1943 and $1.16 the year before. Thus,
a greater proportion of total operating income of
member associations was represented by the return
which was realized on comparatively low-yield investments.
This condition was in turn reflected in the relation
of net operating income to the average amount of
capital invested in these associations. In 1944
all reporting institutions earned only 3.66 percent
on their average invested capital in comparison with
a return of 3.99 and 4.33 percent during 1943 and
1942, respectively.
Wartime activity in the real estate market brought
institutionally owned property to an all-time low and
caused another decline in real estate sold on contract.
As a result, the net income from these two items represented only $0.48 and $2.68, respectively, of each
$100. Other sources of operating income increased
slightly from $5.15 per $100 in 1943 to $5.32 last
year.
319
Expense and Net Income
Operating expense, excluding interest on borrowed
money, claimed $28.16 of each $100 of gross operating
income in 1944. This was the fifth consecutive year
in which this ratio has increased, the one-point gain
over the 1943 ratio being the largest rise reported
for any of the five years. As will be seen from the
table, the increase in 1944 resulted from an increased
proportion of the operating income dollar going to
employee compensation, advertising charges and
other expenses, which outweighed the slight proportionate decline in charges to maintenance and depreciation of office quarters.
Reversing the trend of preceding years, net income, after allowance for interest and non-op era tingitems, declined in 1944 to represent $72.43 for each
$100 of gross operating income.
change was the comparatively large increase in the
proportion of funds allocated to reserves. This has
been increasing steadily and last year represented
an amount equal to about one-fifth of all net income
(20.46 percent) following two years of only fractional
gains when 18.49 and 18.05 percent, respectively,
was set aside for reserves.
At the same time, the proportion allocated to undivided profits showed a more-than-offsetting decrease. In 1944 it took a relatively steep drop to
9.07 percent of net income from 11.25 in 1943 and
11.30 percent the year before. As a result, the
combined reserves and undivided profits account
absorbed only 29.53 percent in 1944 compared with
29.74 percent in 1943.
For the first time since 1940 the proportion of net
income used for dividend payments (including interest on deposits and investment certificates) showed
an increase from the preceding year. Of each $100
of 1944 net income, $70.47 went for dividend payments as against $70.26 for this purpose during the
previous year.
Distribution of Net Income
The distribution of the net income of all reporting
associations is shown in the lower part of the tables.
From this it will be seen that the most important
Table 1.—Selected operating ratios for reporting savings and loan members of the Federal Home
Loan Bank System
[Calendar years 1943 and 1944]
All associations
I n s u r e d s t a t e chartered
Federals
Uninsured state
chartered
Item
1944
N u m b e r of associations.
_ ...
____..
. . .._
_
.. .
..
...
3, 652
1943
3,681
1944
1944
1943
1,466
1,464
994
E A T I O TO G R O S S O P E R A T I N G
I n t e r e s t income:
O n m o r t g a g e loans . ...
.
On real estate sold on c o n t r a c t . . . _ . . _
.. ... .. _
On i n v e s t m e n t s a n d b a n k d e p o s i t s , .
_
N e t income on real estate o w n e d . _ _ . ___ _ __
..
Gross income from office b u i l d i n g
. ..
__
All other o p e r a t i n g income
_ _ . _ _ .
. _ _ _ _ _ _..
_ . . _.
__
...___
T o t a l gross o p e r a t i n g i n c o m e . - . _ _ . __.
_
Compensation._
_ _ ._ _
M a i n t e n a n c e a n d depreciation of office q u a r t e r s . .
. . ..
Advertising
__
___
_
All o t h e r operating expense
___
T o t a l o p e r a t i n g expense
_.
_
_
_
.
N e t o p e r a t i n g income (before interest, etc.)
._.
Less: I n t e r e s t on F H L B a d v a n c e s a n d other b o r r o w e d m o n e y
_
A d d : T o t a l non-operating income
_
. . . - . . . __
Less: T o t a l n o n - o p e r a t i n g charges
_„___._
_ _ _ ...
N e t income . . . ._ _
.
__ . . .
__ __
_
.
- -.
N e t income
320
._
_
.
_.
_
960
1944
1943
1,194
1,255
INCOME
Percent
84.14
2.68
7.38
0.48
1.28
4.04
Percent
87.44
3.31
3.32
0.78
1.20
3. 95
Percent
83.97
2.14
8.34
0.14
1.24
4.17
Percent
88.23
2.62
3.48
0.28
1.12
4.27
Percent
82.84
3.63
6.98
0.68
1.22
4.65
Percent
85.61
4.59
3.47
1.18
1.18
3.97
Percent
86.07
2.61
5.93
0.92
1.43
3.04
Percent
88.00
3.20
2.86
1.23
1.39
3.32
100.00
100. 00
100.00
100. 00
100. 00
100.00
100.00
100.00
13. 77
3. 05
1.77
9.57
13. 46
3.07
1. 74
8.89
14.08
3.05
2.19
9.98
13.89
3.11
2.21
9.39
14.66
3.23
1.67
11.26
14.32
3.22
1.70
10.48
12. 07
2.84
1.03
6.73
11.77
2.82
0.94
6.29
28.16
27.16
29.30
28.60
30.82
29.72
22.67
21.82
71.84
72.84
70.70
71.40
69.18
70.28
77.33
78.18
0.88
2.23
0.76
0.97
2.40
1.19
1.17
1.69
0.64
1.22
1.65
1.10
0.80
2.89
0.87
0.95
3.46
1.28
0.38
2.51
0.89
0.54
2.63
1.25
72.43
73.08
70.58
70.73
70.40
71.51
78.57
79.02
B ATTO TO ISJ"ET
D i s t r i b u t i o n of n e t income:
D i v i d e n d s ( i n c l u d i n g interest on deposits a n d i n v e s t m e n t certificates)
T r a n s f e r t o reserves
_
_._.
B a l a n c e to u n d i v i d e d profits. _____
__
_.
1943
INCOME
70.47
20.46
9.07
70.26
18.49
11.25
67.30
23.25
9.45
67.83
19.72
12.45
71.31
20.95
7.74
70.60
19.55
9.85
75.29
14.92
9.79
73.83
15.48
10.69
100. 00
100.00
100. 00
100.00
100.00
100.00
100. 00
100.00
Federal Home Loan Bank Review
Variation by Class
Variations from the over-all pattern were relatively minor among the different classes of associations, and none of the deviations was more than
fractional. Although Federals reported the greatest
proportionate loss in income from mortgage loans,
they also showed the greatest relative increase in
revenue from Government bond holdings. In relation to gross operating income, uninsured state
associations recorded the lowest proportionate operating expense ratio and the highest proportionate
net income. This follows previous trends, as does
the fact that their ratio of mortgage income was the
highest for all classes of associations while interest
on investments was less than in either insured state
chartered or Federal associations.
In the distribution of net income, Federals once
more led in the proportionate amount transferred to
the reserves and undivided profits account. A breakdown of this item shows, in all classes, an increased
proportion going to reserves. Except for Federals,
the relative decline more than offset that gain, with
the result that state members (both insured and uninsured) reported a decrease from 1943 in the ratio of
reserves and undivided profits. Dividend payments
continued to absorb proportionately more of the net
income of uninsured members than of insured state
associations or of Federals.
Size Groups
The best measure for savings and loan executives to
use in assessing the position and progress of their own
association is a comparison with other institutions of
approximately the same asset size. D a t a covering
the five-year span of this series have pointed to
several significant conclusions. The developments
during 1944, in general, confirmed findings of previous years.
For the fifth successive year, a higher operating
efficiency was shown by the larger associations. T h a t
is, the ratio of total operating expenses to gross operating income declined with the increasing size of
an association. From a high of 38.7 percent for the
smallest institutions it dropped progressively to 27.3
percent for associations between $5,000,000 and
$10,000,000 assets. The 83 members with assets
of over $10,000,000 showed a fractional rise to 27.8
percent. This duplicated the previous indication
that the next-to-largest size group enjoyed the most
favorable ratio in this respect.
Table 2.—Selected operating ratios for 3,652 savings and loan members of the Federal Home Loan
Bank System
[For the year ending December 31, 1944, by size of association]
Item
Total
3,652
Less t h a n $100,000- $250,000- $500,000- $1,000,000- $2,500,000- $5,000,000Over
$99,999
$249,999
$499,999
$999,999 $2,499,999 $4,999,999 $9,999,999 $10,000,000
165
559
654
R A TIO TO
I n t e r e s t income:
N e t o p e r a t i n g income (before interest, etc.)
-
Less: I n t e r e s t on F H L B a d v a n c e s a n d other borrowed m o n e y
714
August 1945
428
175
83
G R OSS OPERj!LTING I N C O M E
Percent
84.14
2.68
7.38
0.48
1.28
4.04
Percent
84.49
4.79
1.90
1.86
0.85
6.11
Percent
87.07
2.91
2.96
1.41
0.61
5.04
Percent
86.25
3.34
3.74
1.22
0.81
4.64
Percent
85.18
3.74
4.79
0.85
0.92
4.52
Percent
85.49
2.80
6.07
0.50
1.02
4.12
Percent
84.68
2.61
7.17
0.54
1.11
3.89
Percent
82.32
2.92
8.37
0.35
1.75
4.29
Percent
82.60
1.83
10.31
0.13
1.64
3.49
100.00
100.00
100.00
100.00
100.00
100. 00
100.00
100.00
100.00
13.77
3.05
1.77
9.57
23.62
3.70
0.67
10.67
18.19
• 3.16
0.73
8.51
16.93
3.07
0.91
8.68
16.06
2.89
1.08
8.99
14.63
2.91
1.54
9.42
13.61
2.89
1.91
9.56
12.36
3.32
2.03
9.58
12.21
3.17
2.17
10. 23
28.16
38.66
30.59
29.59
29.02
28.50
27. 97
27.29
27.78
71.84
61.34
69.41
70.41
70.98
71.50
72.03
72.71
72.22
0.88
2.23
0.76
72.43
1.29
5.82
3.11
62.76
0.88
1.91
0.95
69.49
0.77
2.58
0.56
71.66
0.73
1.94
0.86
71.33
0.84
1.65
0.72
71.59
0.71
2.20
0.79
72.73
0.96
2.16
0.67
73.24
1.12
2.94
0.82
73.22
D l S T R I B U T ION OF
D i v i d e n d s (including interest on deposits a n d i n v e s t m e n t certi-
874
N l:T I N C O M E
70.47
20.46
9.07
86.72
18.65
-5.37
78.09
17.87
4.04
76.54
16.89
6.57
75.39
18.00
6.61
71.56
19.59
8.85
69.58
20.52
9.90
69.71
21.62
8.67
67.11
22.20
10.69
100. 00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
321
DISTRIBUTION OF NET INCOME
ALL REPORTING MEMBER SAVINGS AND LOAN ASSOCIATIONS
1 9 4 4 - B Y ASSET SIZE GROUPS
in 1943—62.76 to 73.24 percent compared with 65.12
to 74.58 percent. The only increase last year was
among associations of $250,000 to $500,000 in assets.
The larger associations again set aside proportionately more of their net income in reserves and
undivided profits than did those institutions in the
smaller asset size groups. However, only associations in the $2,500,000 to $5,000,000 class and those
over $10,000,000 were able to increase the proportion over that of 1943.
* * % DIRECTORY
CHANGES
w
JUNE 16—JULY 15,
For the fourth time, the spread in the ratio of expense to gross operating income increased. Last
year it was 27.3-38.7 compared with 25.9-35.7 the
year before. At the same time that the smallest
size associations were improving this ratio, the
larger size group showed the first more-than-fractional increase.
As has previously been established by these surveys, 1944 ratios showed that the larger the association, the smaller the proportion of gross income
going to compensation. The opposite was again
true about money spent for advertising.
The outstanding change evident during 1944 in
the expense pattern was in the proportionate
amounts absorbed by the payment of interest on
F H L B advances and other borrowed money. I n
the past it had been found that the smaller institutions spent a relatively greater sum for this purpose
than did larger institutions. Last year, however,
there was an obvious deviation from that pattern.
While associations under $100,000 still led in the
proportion of income going for interest (1.29 percent) the next highest proportions were found in the
two largest size groups (1.12 and 0.96, respectively).
The spread in these ratios during 1944 was considerably narrower than in the previous year—0.96
to 1.29 percent compared with 0.82 to 1.51. Although the lowest proportion in 1944 was somewhat
higher than in 1943, all associations except the two
largest size groups showed a reduction last year in
the proportion of income expended for interest.
Net income as a proportion of gross operating
income showed a slightly larger spread between the
larger and smaller size associations than was the case
322 -
1945
Key to Changes
*Admission to Membership in Bank System
"""Termination of Membership in Bank System
#Federal Charter Granted
##Federal Charter Canceled
01nsurance Certificate Granted
001nsurance Certificate Canceled
DISTRICT N O . 1
CONNECTICUT:
Torrington:
#First Federal Savings and Loan Association of Torrington, 61 Main
Street.
DISTRICT N O . 2
N E W JERSEY:
Camden:
*0Union Federal Savings and Loan Association, 107 North Sixth Street.
Perth Amboy:
*0First Savings and Loan Association of Perth Amboy, 339 State Street.
Trenton:
*Mutual Building and Loan Association, 59 North Stockton Street.
DISTRICT N O . 3
PENNSYLVANIA:
Huntingdon:
**Franklin Building and Loan Association, 521 Washington Street.
Philadelphia:
#Protected Future Federal Savings and Loan Association, 3701 North
Broad Street.
**Southwark Foundry Building Association, 730 South Fifth Street.
DISTRICT N O . 9
TEXAS:
Corpus Christi:
##00First Federal Savings and Loan Association of Corpus Christi, Mesquite at Peoples Street.
DISTRICT N O . 12
CALIFORNIA:
Fullerton:
0Fullerton Building-Loan Association, 113 West Amerige Avenue.
NATIONAL HOUSING AGENCY
John B. Blandford, Jr., Administrator
FEDERAL HOME LOAN BANK ADMINISTRATION
John H. Fahey, Commissioner
Advisory Council Member
|
T H E Federal Home Loan Bank Administration
has recently announced the appointment of
Ernest T. Trigg as a member of the Savings and
Loan Advisory Council. H e will serve until May 27,
1946.
Federal Home Loan Bank Review
* * * WORTH REPEATING * * *
ACCUMULATED WEALTH: "America's pool of war savings is important in
a way that mere property alone can
never be. It is a challenge—a challenge to use our savings, no matter how
much or how little— as seed, to put our
accumulated wealth to work. For the
war savings pool can become an instrument to guarantee for tomorrow
both security and opportunity/'
Supreme Court Justice William O.
Douglas, in address to War Fund
workers, Indianapolis, Indiana.
SELF-RESTRAINT: "If . . . savings are
dissipated rapidly before there has
been time to reconvert the economy
for civilian production, they will cause
a rise in prices and be largely wasted.
They will do worse than that. They
will create dislocations in the economy
and greatly impede the difficult process
of postwar readjustment. Self-restraint and public spirit in the use of
these savings by the people will be a
powerful contribution to orderly postwar reconstruction and to the maintenance of the economy on a stable
basis."
E. A. Goldenweiser, Economic
Adviser, Federal Reserve Board,
Savings Bank Journal, June 1945.
LET'S NOT PRETEND: "It would be
idle to pretend that it will be easy to
reach and hold full-employment levels.
It would be folly, on the other hand,
to pretend that it is impossible. The
American people will not be content to
go back to protracted large scale unemployment. It is imperative that
we find ways and means to provide
jobs for those willing and able to work.
Depressions are not acts of God, any
more than wars are. They are the
product of our man-made institutions
and the way we organize our society.
We can and must organize to prevent
both."
Fred M. Vinson, Secretary of
the Treasury.
FLIGHT TO THE SUBURBS: "The constant leakage of taxable wealth from
the larger cities threatens the bankruptcy of several of them within the
foreseeable future. Since it takes two
to make a bargain, and some of the
advantages of suburban living would
be lost if the suburb were to be merged
with the larger entity, annexation is
severely resisted. Buffalo, for exSeptember 194S
ample, has annexed no new territory
for more than a hundred years. New
York City has taken in no new territory for a third of a century, Philadelphia has annexed only one-tenth of a
square mile since 1854, and San Francisco is the same size today that it was
eighty-eight years ago.
"These trends cannot be reversed,
nor can the financial situation of the
urban districts be improved, unless the
city is made a better place in which to
live."
Maj. Gen. Philip B. Fleming
before the Sub-Committee on
Housing and Urban Redevelopment of the Senate Postwar
Economic Policy and Planning
Committee.
THE REAL LACK: "The housing problem is admittedly one of providing
livable homes for the lower income
groups at rent or ownership levels
which can be afforded by them. . .
In the years ahead the adequate housing of millions of our citizens will
require common-sense planning and
action. Slum conditions with their
harmful results will eventually cost
the nation more than the wise use of
its credit and resources to eliminate
the spawning beds of crime, disease
and civil unrest."
The New York Times, July 21,
1945.
SUSTAINED CONSTRUCTION: "The
construction industry must have time
to build up to a peak that can be sustained. It must not be made a catchall for the unemployed to the exclusion
of other areas of production which can
provide more sustained employment.
The stability of the construction industry itself must be a consideration in
setting the goals for its expansion.
We shall not serve total economic
stability by exaggerating the cycles in
construction."
Report on Postwar Public Works
and Construction, House Special
Committee on Postwar Economic
Policy and Planning, July 1945.
CONVERTIBLE CITIES ". . . Metropolitan areas, regardless of prewar size,
will tend to retain new growth if it is
a more or less normal projection of
wartime growth. This is so because
manpower released from war industry
will be in ready demand by service
enterprises. To sum up, cities with
readily convertible war industries may
suffer little or no population loss provided their war growth has not too
far exceeded their physical capacity to
accommodate people.
" I t may seem contradictory to refer
. . . to a rush to the cities, and . . .
to comment on the flight from the
cities. This anomaly is resolved when
we distinguish between the 'job rush'
to the cities and the 'residence flight*
from them."
J. C. Capt, Director, Bureau of
the Census.
Domestic Commerce, July 1945.
POSTWAR BOOKSHELF
Although inclusion of title does not
necessarily mean recommendation by the
REVIEW, the following recent publications will be of interest.
AN APPRAISAL
METHOD FOR
MEASURING
THE QUALITY OF
HOUSING; A YARDSTICK
FOR
HEALTH
OFFICERS,
HOUSING
OFFICIALS
AND
PLANNERS:
(Part 1). 1945. 71 pp. Available
at $1 from American Public Health
Association Committee on the Hygiene
of Housing, 1890 Broadway, New
York 19, N. Y.
WHEN
DEMOCRACY
BUILDS:
By Frank Lloyd Wright. Available
at $4 from University of Chicago
Press, 5750 Ellis Avenue, Chicago, 111.
CITY DEVELOPMENT:
By Lewis
Mumford. 240 pp., index. Available
at $2 from Harcourt, Brace & Co., 383
Madison Avenue, New York 17, N. Y.
PRIVATE
ENTERPRISE
HOUSING: REPORT OF THE
PRIVATE
ENTERPRISE
SUBCOMMITTEE
OF THE CENTRAL
HOUSING
ADVISORY COMMITTEE OF THE
MINISTRY
OF HEALTH,
[Great
Britain]. London, 1944. 56 pp.,
chart. Is. net.
AMERICA'S
ROLE IN
THE
WORLD ECONOMY: By Alvin H.
Hansen. Available at $2.50 from W.
W. Norton and Company, Inc., 70
Fifth Avenue, New York 11, N. Y.
PLANNING
TO BUILD:
By
T h o m a s H. C r e i g h t o n . 2 2 8 pp.
Available at $2.50 from Doubleday,
Doran and Company, Inc., Garden
City, New York 20, N. Y.
323
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-/939=/ 00
BY YEARS
BY MONTHS
INDEX
i
220
—
i
200
! 1 1 1 ! !
PRIVATE
;
/
/ '1
\
140
f /
\ /
120
V
3S.6 LN.LEND.
FED. HOM 1 LN. BK. A
100
V
\
80
,.«*.
1
|
i
i
i
/
/
/^SVGS
•'
\^
I
|
f
t
\ I & 2 FAMILY DWELL. UNITS
V
fNONFARM
j
^rr
i
_J_I
.
Pr f / o t .o
1
|
!
i
„..•—•.
/NDLISTRIAL PRODUC
:TION-±\/
!
i
i
ADJUSTED FOR SEASONAL
_j
i
240
FED. ^ L i ) L K V t
i
BUAK D)
/
,+'"'
*»**
/
200
(__._!_..J.
1
VARIATION !
1
I
1
'
/
160
140
/
120
V/
100
^/NCOME PAYMENTS
( U S . DEPT OF C O M M E R C E ) ^ ,
*'\'
/
/ >
>* X'*
..v
l
^/NDUSTR/AL PRODUCTION 1
rr^C
| s
^ ^
JV/M COME! PAYMEN7 S
I
,••**
«...
y
MP6. EA/»PLO>'MEN T ^
i
j
i
i
i
i
•*!
&S*^ -- j£. ^MFG. EMPLOYMENT
V
S;
i i
!
l
/y
180
|
i i i i i i i
i1
L
i
77
1 1
:
V^BU/LD/NG MATER/AL PRICES~
'RENTS / -
1
L
^ D U ( L L / l l V b r5
(U.S. DEF T OF LAB DR)
__LJ_
,
;
FORECLOSURES
JU-4--M-+-
..J
260;
60
,
.—••*
- J - PFJUTQ
* T u . S . DEPT OF LABC)R)
k
—zr^
\ \ r
i I
80
80
;
...•
20
0
140
220
|
.PRIVATE CONSTRUCTION \
FORECLOSURES 1
60
280
I
i
•-/'
( p p n wniyiF i M RK- Anmn
V
/
j
!
/r
40
1
V
a LN. LEND.
/'— /
S ^
100
-A.
"1
*..'*
!
\
60
120
/
/S./"^
irvi*
Vs /
/ IV
1
\'
1
V
\
/
!
i
!
!
f
/
\
i
;
.Al
160
I
;
I S 2 FAMILY DWELL.UNITS
j
(FED. HOME LOAN BANK A D M . ) /
(U.S. DEPT OF LAB. RECORDS)/
180
ADJUSTED FOR SEASONAL VARIATION
I
CONSTRUCTION^
^\
(U.S. DEPT OF LABOR)
f^^
\ /
1 1
1930 '31 '32 '33 '34 '35 '36 '37 '38 *39 '40 '41 '42 '43 '44
M,LL,oWstF.H.L.B.
ADVANCES OUTSTANDING
$200
M-uoNs
1 1
1 1
1 1
i
i
i I
1943
1 1
1944
1 1
i i
i i
i i
i i
1945
MORTGAGE RECORDINGS-ALL LENDERS
MONEY IN CIRCULATION
MILLIONS
$500
400
300
200
100
llnlnl,
324
ll, ,1,
Federal Home Loan Bank Review
*
*
*
SIX-MONTH SURVEY
*
*
*
HIGHLIGHTS
The over-all volume of economic activity was relatively unaffected by victory in Europe.
A. Continuing the long-range gradual decline, industrial output in June 1945 stood at 222 percent of thel935-1939
average—
13 points below June 1944.
B. Except for steel, copper and aluminum, civilian supplies will probably remain tight until VJ Day.
II. Mortgage recordings reached a new peak in the first half of 1945 with all lenders, except life insurance companies, showing gains
over figures for the like period last year.
III. In the first half of 1945, home building activity in urban areas was 12 percent lower than in the same 1944 period.
Permits were
issued for 56,968 units by June 30, 1945, compared with 64,500 by the end of June 1944.
IV. Savings and loan lending in the January-June period reached a record high, standing 21 percent above the previous peak reported
in the corresponding period of 1944. New construction loans were the only type to show a decline.
V. Showing a new low of 7,785 for the January-June period, nonfarm mortgage foreclosures gave definite signs of leveling off.
VI. FHLB assets at the end of June were $6,819,875 greater than at the close of the calendar year.
A. Government securities held by the FHL Banks showed a $15,716,000
increase over the December figure.
B. Lending by the Banks, although lower than in the corresponding period of 1944, was greater than in any like six months before
the war.
/.
BUSINESS CONDITIONS—VE Day
brought little change
Although hostilities did not cease in Europe until
early May, the entire first half of 1945 was permeated
with an air of anticipation of the coming shift to a
one-front war. Reflecting the revision of a number
of munitions schedules at the turn of the year, industrial production, allowing for seasonal variations,
increased during the first quarter. However, since
then it has declined steadily and in June stood at 222
percent of the Federal Reserve Board's seasonally
adjusted index (1935-1939=100). Thus, at the
halfway point in 1945 it was 13 points below the level
of June 1944.
However, the fact that it has followed a gradually
sloping plateau, rather than falling off abruptly as
the German collapse approached, is b u t another
indication that the war against Japan means large,
even though reduced, demands on materials and
labor. While there has been a reduction in munitions output, it has been according to previous
schedule and little change in the over-all volume of
economic activity was evident since VE Day.
Forthcoming reductions in munitions will result in
substantial increases in the supply of steel, copper
and aluminum for civilian production. Other than
in these basic metals, though, the materials situation
is expected to remain tight until the end of the
Japanese War. The limited resumption of civilian
goods manufacture is only expected gradually to ease
shortages in certain lines.
Retail activity, as reflected by the Federal Reserve
Board's index of department store sales, reached a
August 1945
high of 224 percent of the seasonally adjusted average
(1935-1939=100) in March. The following month it
dropped to 181 percent, then resumed its upward
movement to reach a level of 201 percent in June.
One indication of the inflationary pressure on the
civilian goods market is to be found in the fact that
June 1945 did not show the usual decline from the
preceding month. In June the price control and
stabilization acts, with amendments, were continued
by Congress for another year.
Incomes received by individuals and business have
been maintained in 1945 at a record level. Payments to individuals during the second quarter are
estimated by the Federal Reserve Board at an
annual rate of $163,000,000,000 as compared with a
rate of $156,000,000,000 in the like period of last year.
Following the relaxations of the construction
limitation order by W P B at the end of hostilities in
Europe, private construction contract awards showed
considerable increase in both May and June. However, activity in this line may be temporarily restricted by shortages of lumber and other building
materials, as well as an insufficient supply of skilled
labor.
[1935-1939 = 100]
T y p e of index
H o m e construction (private) i_
Foreclosures (nonfarm) 1
R e n t a l index ( B L S )
B u i l d i n g m a t e r i a l prices
Savings a n d loan l e n d i n g i
Industrial production i
Manufacturing e m p l o y m e n t J .
Income payments 1
r
1
June
1945
May
1945
Percent
change
June
1944
71.7
10.0
108.3
131.1
218.6
222.0
153.7
243.8
65.1
9.1
108.3
131.0
215.7
' 226. 0
'155.8
• 241. 9
+10.1
+9.9
0.0
+0.1
+1.3
-1.8
-1.3
+0.8
58.5
11.4
108.1
129.4
183.9
235.0
171.5
233.9
Percent
change
+22.6
-12.3
+0.2
+1.3
+18.9
-5.5
-10.4
+4.2
Revised.
A d j u s t e d for n o r m a l seasonal v a r i a t i o n .
325
BUILDING ACTIVITY—Six-month
total below last year
Home building activity in urban areas of the
United States during the first half of 1945 was about
12 percent under that for the same period last year.
Estimates of the Bureau of Labor Statistics placed
the number of family dwelling units for which building permits were issued or contracts awarded (for
public construction) at about 56,968 compared with
64,500 in the first half of 1944. Both privately and
publicly financed building contributed to this decline,
the latter type accounting for well over two-thirds
of the drop.
The 51,056 units of private construction started
through June, more than four-fifths of which were
1-family structures, fell about 4 percent under the
cumulative total at mid-year 1944. Public construction, which reached its peak in 1942 and 1943,
continued to decline, dropping from 11,152 to 5,912
units, or 47 percent, in this comparison.
Private building activity in urban areas continued
to increase gradually during June, accounting for
11,982 units, or about 7 percent more than in May.
This, coupled with a rise from 1,283 to 1,598 in the
number of publicly financed dwelling units, raised
the total for the month 9 percent to 13,580. [TABLES
1 and 2.]
B U I L D I N G COSTS—Upward trend
continued to mid-year
The steady upward trend in the index of the cost
of building the standard house, which has prevailed
for about five years, was evident throughout the first
half of 1945. The rate at which the index rose during the latter period, however, was considerably
below that shown in the same interval last year.
From January 1 through June 1945, the index of total
costs rose 0.7 percent (from 134.4 to 135.4 percent of
the 1935-1939 average) compared with a gain of 1.9
Construction costs for the standard house
[Average month of 1935-1939=100]
Percent
change
132. 5
' 140. 7
+ 0.2
+ 0. 1
130. 7
137.5
+ 1.5
+ 2. 4
r
+ 0.1
133. 0
+ 1.8
June
1945
Material
__
Labor. _ _
132. 7
140.8
r
135.4
Total
r
Revised.
326
June Percent
1944 change
May
1945
Element of cost
135. 2
percent during the same period of 1944. Material
costs increased 0.9 percent during this interval to
132.7 and labor costs gained 0.6 percent to 140.8.
During the first six months of 1944, material costs
advanced 2.4 percent and labor charges rose by 1.1
percent.
The Department of Labor's composite index of
wholesale prices of building materials followed a
similar trend, increasing 0.8 percent during the first
six months of this year compared with a rise of 2.2
percent in 1944. All components of the index
moved to higher levels during this half-year period,
except structural steel and paint and paint materials
which showed no change.
During June the index of the cost of constructing
the standard house rose fractionally over M a y (revised), the result of gains of 0.2 percent in material
costs and 0.1 percent in labor costs. The Department of Labor's index of wholesale building material
prices also advanced fractionally during June to
reach 131.1 percent of the 1935-1939 average.
[TABLES 3, 4 and
5].
New mortgage loans distributed by purpose
[Dollar amounts are shown in thousands]
Purpose
Construction
Home purchase
Refinancing
Reconditioning
Other purposes
Total
June
1945
May
1945
Percent
change
June
1944
$17, 567 $13, 032 + 34.8 $9, 663
116, 798 120, 244 - 2 . 9 103, 276
17, 147 15, 887 + 7. 9 14, 963
3,364 3, 396 - 0 . 9 2,957
12, 435 10, 520 + 18. 2 9, 850
167,311 163, 079
Percentchange
+
+
+
+
+
81.8
13. 1
14. 6
13. 8
26.2
+ 2. 6 140, 709 + 18. 9
MORTGAGE LENDING—All-time high
shown in first half year
New mortgage loans of $833,900,000 made by
savings and loan associations during the first half of
this year brought the volume to the highest point on
record for any comparable period. This year's
activity was 21 percent above the previous peak of
$691,100,000 reported in the January-June period of
1944. All Bank Districts participated in this gain,
with increases ranging from 2 percent in Little Rock
to 41 perceijLt in New York.
During the January-June period this year, construction loans were the only ones to show a decline—
down 7 percent to $54,400,000. I n the other categories increases ranged from 12 percent for reconditioning to 29 percent in the miscellaneous classifiFederal Home Loan Bank Review
TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES - BY TYPE OF ASSOCIATION
BY MONTHS
1944
1945
UNITED STATES - BY PURPOSE OF LOAN
BY MONTHS
cation. Home purchase loans continued to account
for the greatest proportion of total lending—
$610,700,000, or 73 percent. Last year this type of
lending represented 71 percent of total savings and
loan activity.
New lending, which has increased each month this
year, reached $167,300,000 in June, breaking all
records for any month since the early twenties.
The June 1945 volume was 3 percent greater than
that reported in May. However, the gain was confined to the Boston, Cincinnati, Chicago, Des Moines
and Los Angeles regions. New loans made in June
of this year were 19 percent greater than in the same
1944 month, with Little Rock the only District
showing a decline.
The $17,600,000 of construction loans, although
relatively insignificant in prewar comparisons, represented the highest monthly total since July 1942.
I t was 35 percent above May and 82 percent greater
than in June last year. Home purchase loans, in
spite of a 3-percent decline from May, accounted for
70 percent of all lending. The $116,800,000 disbursed for that purpose in June was 13 percent
greater than the $103,300,000 loaned during the
same month last year. [TABLES 6 and 7.]
August 194S
MORTGAGE RECORDINGS—New
his set in first half of 1945
I stablishing a new high for this series, nonfarm
moi ;gages of $20,000 or less were recorded in the
ami lint of $2,556,878,000 during the first six months
of 1 45. This represented a gain of about 18 percent
abo e recordings in the like period of last year and
was almost 15 percent greater than the previous
firs -half peak reported in 1941. The size of the
average mortgage recorded in the first six months of
the current year was $3,372, or about 6 percent larger
than the $3,175 average in the same 1944 interval.
The dollar volume rise resulted from an increase
in the recordings by all types of mortgagees, except
life insurance companies, over the corresponding
months of last year. Individuals showed the largest
gain, up 30 percent, followed by mutual savings
banks which recorded about 23 percent more than in
the like six months of 1944. Savings and loan
associations had the third largest proportionate
rise—more than 21 percent.
In the month of June, which closed this six-month
period, $487,041,000 in small nonfarm mortgages was
recorded, showing a barely perceptible drop from the
figure reported for the preceding month. However,
it was 16 percent above recordings in June 1944.
With the exception of life insurance companies and
"other mortgagees,' 1 ' all types of lenders recorded a
greater dollar volume of loans than in the like month
of 1944. Individuals continued to show the greatest
proportionate increase, higher by 23 percent than in
June of last year, while savings and loan associations
were more than 21 percent above their level for the
same month last year. [TABLES 8 and 9.]
Mortgage recordings by type of mortgagee
[Dollar amounts are shown in thousands]
Type of lender
PerPerCumuPercent
lative re- cent of
change ofcent
June
cordings
total
from
1945
record(6
May amount
ings
months)
1945
Savings and loan associations
Insurance companies-—
Banks, trust companies
_ __
Mutual savings banks_ _
Individuals
Others _
_
+ 2. 1
+ 1.6
36. 1
4.5
+ 0. 3
-2. 2
-3.2
-0.4
18.8
3.8
25.0
11.8
Total___.
-0. 1
$879, 670
117, 563
480,
89,
673,
316,
34 4
4.6
150
675
781
039
18 8
3.5
26 3
12 4
100.0 2, 556, 878
100 0
327
FEDERAL H O M E L O A N B A N K SYSTEM
[TABLE 12]
A review of the condition and operations of the
Federal Home Loan Banks during the first six months
of 1945 shows only a few significant changes from the
previous year. Last year's pattern was duplicated
in an increase in consolidated assets of the 12 Banks.
At the close of June they amounted to $309,832,787—
a gain of $6,819,875 in six months and a rise of
$26,000,000 over assets reported on June 30, 1944.
Lending activity during the first half of the year
was not so high as in the January-June interval of
1944, although it remained greater than during any
similar prewar period. Advances of $111,352,000
were about $6,000,000 less than in 1944 but more
than twice as great as those in the first six months
of 1943.
Member institutions retired their indebtedness to
the F H L Banks at an accelerated rate during the
first half of this year, but the higher volume of repayments was again less than new advances. By
the end of June, the Banks had received $110,249,000
compared with the previous record repayment
volume of $119,310,000 in the last six months of 1944.
Because of the excess of advances over repayments
in the first six months of this year, the balance of
advances outstanding continued to rise and on
June 30 stood at $131,666,000. This represented an
increase of $1,103,000 above the last year-end bal-
ance and was $3,388,000 more than the amount
outstanding at the end of June last year.
Partially reflecting the decreased volume of advances during the first six months of 1945, as well as
increased deposits, the total of Government
securities held by the F H L Banks reversed last
year's decline and showed a six-months' increase of
$15,716,000. At the end of June, $159,762,000 of
these investments were carried on the consolidated
statement of condition, compared with $131,973,000
on the same date last year.
Total liabilities showed another gain in a 12-month
comparison. By the end of June 1945 they had increased $16,203,000 over the same time last year and
stood at $96,418,000 after a barely perceptible decline from the amount reported on December 31,
1944.
Deposits, which at the end of June totaled
$45,371,000, showed the most outstanding change.
They reversed the decrease evident in 1944, increasing by $16,598,000 during the first six months of
1945 and stood $23,928,000 above June 30, 1944.
Keversing the increase of the preceding six months,
debentures outstanding at the end of June totaled
$50,000,000 after a drop of $16,500,000 from December 1944. I n this connection it is interesting to
note that both dates coincided with war loans—the
Condensed consolidated statement of condition of the Federal Home Loan Banks as of June 30, 1945
ASSETS
CASH
Cash on hand and on deposit in the U . S . Treasury
and commercial banks
INVESTMENTS
United States Treasury Bills $2,298,411.64
Other obligations of the U. S. Government and
securities fully guaranteed by it, $157,464,041.38
ADVANCES OUTSTANDING
Advances made under provisions of the Federal
Home Loan Bank Act to members
ACCRUED I N T E R E S T RECEIVABLE
Interest accrued but not due on investments and
advances outstanding
D E F E R R E D CHARGES
....
Prepaid expense items applicable to future operations
OTHER A S S E T S , . ,
.
Accounts receivable and miscellaneous assets
TOTAL ASSETS.
LIABILITIES AND CAPITAL
(5. 61%) $17, 387, 456. 75
(51.56%)
159,762,453.02
(42.50%)
131,665,985.23
(0.25%)
770,556.41
(0.00%)
7,264.38
(0.08%)
239,072.10
LIABILITIES
DEPOSITS
$45,370,629.45
Demand and time deposits of members totaled $45,327,829.45
and the deposits of applicants on stock subscribed in connection with membership applications, $42,800.00
ACCRUED I N T E R E S T PAYABLE
220,608.20
Interest accrued but not due on members' time deposits,
$25,811.40 and on consolidated debentures, $194,796.80
DIVIDENDS PAYABLE
771,307.15
Dividends payable in July 1945 on stock as of record June 30,
1945
ACCOUNTS PAYABLE
55,223.55
D E B E N T U R E S OUTSTANDING
50,000,000.00
Series "C-1945," 0.85% due 7-16-45
Consolidated debentures outstanding which are the joint and
several obligations of the Federal Home Loan Banks
TOTAL LIABILITIES
(100.00%)
As of June 30, 1945, the Reconstruction Finance
Corporation held 64.3 percent of the total capital
stock in the Federal Home Loan Banks, which represented an investment of $124,509,900. The capital
stock of the Banks owned by members totaled
$69,207,500, an increase of $5,395,600, or 8.5 percent
over December 31, 1944.
The Surplus-Reserve and Undivided Profits accounts of the several Banks reflect an increase from
$17,921,451.53 at the close of 1944 to $19,702,619.54 on
June 30,1945 which is a gain of 9.9 percent.
i9,832, 787.!
$96,417,768.35
CAPITAL
CAPITAL STOCK:
Fully paid issued and outstanding
$193,717,400.00
Subscribed for and partially paid.. $10,000.00
Less unpaid balance
5, 000. 00
5,000.00
Total paid in
SURPLUS:
Legal reserve (20% of net earnings)
Reserve for contingencies..
Total surplus
UNDIVIDED PROFITS
TOTAL CAPITAL
8,915,670.72
2,733,815.34
$11,649,486.06
8,053,133.48
_ $213,415,019.54
TOTAL LIABILITIES AND CAPITAL
328
$193,712,400.00
$309,832,787.89
Federal Home Loan Bank Review
6th last December and the 7th in June. The longrange effect of the Banks' increasing liquidity is
to be seen in the fact that debentures outstanding
in June of this year were $8,000,000 below those of
the same date in 1944.
Surplus, undivided profits and total capital continued to increase. The gains reported during the
first six months of this year amounted to $799,768;
$981,400; and $6, 947,000, respectively.
June advances of $86,734,000 represented a new
high volume for any month's lending. Once again,
probably reflecting the influence of the war finance
program, advances increased more than seasonally
over May—$80,000,000. All Banks shared in the
gain.
Only four Banks received larger repayments from
member associations during June than in May.
These represented no one section of the country,
being the Banks in Boston, New York, Chicago and
Little Rock. Down $1,431,000 from May, the June
1945 repayment total of $5,992,000 was $2,170,000
under the June 1944 figure.
Dividends and Interest Rates
Of the 10 Banks declaring semiannual dividends
in June, six paid 1.0 percent and four 1.5 percent.
The Cincinnati and Des Moines Banks increased
their dividend rates to 1.5 percent while the Little
Rock rate dropped to 1.0 percent.
Dividends paid by the 10 Banks on June 30, 1945
totaled $973,773, with $351,292 going to member
associations and $622,504 to the Reconstruction
Finance Corporation. Since the Bank System was
set up in 1932, cumulative dividends paid by all
Banks have reached $24,529,000. Bank System
Dividends declared b y the Federal H o m e -oan
Banks on June 3 0 , 1 9 4 5
Federal Home Loan Bank
Boston.. _
New York 2
Pittsburgh
Winston-Salem 2
Cincinnati
Indianapolis
Chicago....
Des Moines
Little Rock ___
Topeka
_
Portland
_.
Los Angeles-.-
.
. _..
__ _ _
Total
1
_
Rate per
annum
Members
Government {
Percent
1.0
1.0
$32, 053. 75
34, 053. 55
$62, 337. 50
94, 816. 00
$94, 391. 25
128, 868. 55
1.5
1.5
1.5
1.5
1.0
1.0
1.0
1.0
86,231.77
54, 411. 06
52, 817. 81
33, 587. 22
12, 942.14
11, 958. 52
9, 456. 38
23, 756. 53
95, 817. 75
47, 597. 25
106, 304. 25
55, 461. 75
43, 862. 00
36, 668. 00
29, 800. 00
49, 839. 50
182, 049. 52
102, 008. 31
159,122.06
89, 048. 97
56, 804.14
48, 626. 52
39, 256. 38
73, 596. 03
351, 268. 73
622, 504. 00
973, 772. 73
Total
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 2dividends arising from earnings subsequent to January 1, 1941.
These Banks declare dividends as of December 31.
August 1945
Interest rates on advances to members of the
Federal H o m e L o a n Bank System *
Federal Home
Loan Bank
Rate
in
effect
July 1,
1945
Type of advance
Percent
IK Short-term advances amortized within 1 year, or
without amortization when 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
On advances for 5 years for G. I. loans, such advances
to be amortized at a rate of 5% quarterly
2V2 All other advances
New York_
IK On short-term advances
On long-term advances
Pittsburgh.
IK On secured advances not to exceed 6 months for the
purchase of Government securities during War
Loan Drives with bimonthly amortization of
33^%
Secured advances up to 5 years with quarterly amor2
tization of 2K% for purpose of repurchasing HOLC
share investments
On advances up to 5 years, advances exceeding 1 year
to be collateralized and amortized 2H% quarterly.
Within certain limits unsecured advances may be
made for a term not to exceed 1 year
All other advances
All advances
"Winston-Salem..
On advances not exceeding 1 year secured by (1)
Cincinnati
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
advances not exceeding 6 months
Indianapolis
IK On
On advances not exceeding 1 year, but in excess of 6
2
months
On long-term advances
2
On short-term advances amortized in equal monthly,
Chicago
quarterly or semiannual instalments, such advances must not exceed in the aggregate 10% of the
gross assets of borrowing member
On short-term advances which exceed 10% of member's gross assets or which are unamortized
On long-term advances
3
Des Moines_
IK On secured advances not exceeding 6 months, without
amortization requirement, for purchase 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
Advances
not exceeding 1 year
2
exceeding 1 year
2K| Advances
All advances
Little Rock.
2 All advances
Topeka
Portland
2K| Advances collateralized by Government obligations
On unsecured advances not ^exceeding 6 months, for
2
the retirement of Treasury or HOLC monies dur2
ing the month of July, 1945, renewal of such loans
to be on a secured basis
All other advances
Los Angeles. _
IK On 1-year secured advances to replace funds invested
in Government securities between January 1, 1942,
and April 1, 1945, payable quarterly (Total obtainable limited to purchase price or par value, whichever is less, of securities purchased)
IK On 6-months secured advances for purchase of Government securities or to replace funds so invested
since April 1, 1945, payable quarterly (Total obtainable limited to purchase price or par value,
whichever is less, of securities purchased) (Foregoing advances limited to $100,000 or 60% of line of
credit, whichever is greater)
All other advances
Boston .
1
Rates on advances to nonmembers are K percent higher, except Cincinnati
which charges 1 percent more.
members have claimed $6,192,000 while the Government has realized $18,337,000 on its investment
during this period.
During the first six months of 1945, only the
New York and Los Angeles Banks reported any
change in interest rates, while Pittsburgh and Chicago
were the only others to show changes in the terms
329
and conditions placed on their advances, New York,
which had previously charged 2.5 percent on all
advances, established a rate of 1.5 percent on shortterm money but retained the 2.5 percent rate on
long-term loans. The Los Angeles Bank which
had charged 2 percent and 1.5 percent on secured
advances to finance the purchase of Government
obligations, established a uniform rate of 1.5 percent
on all advances of this type and lowered the rate
from 2.5 percent to 2 percent on all other advances.
While the Pittsburgh Bank made no change in
interest rates on advances, the 1.5 percent shortterm advance provided to finance the purchase of
Government securities was specifically limited to six
months. Amortization provisions were placed on a
bimonthly instead of a quarterly basis. The Chicago Bank also changed the amortization provisions of its 1.5 percent short-term advance to allow
semiannual as well as bimonthly and quarterly
repayment.
also been rising, but at a slower rate. From January
through June of this year an estimated $579,000,000
was withdrawn, or 17 percent more than in the same
months last year. The resulting excess of gross receipts over withdrawals added approximately $513,000,000 to the private capital of these institutions
compared with about $406,000,000 during the first
half of last year—an increase of 26 percent. The
repurchase, or withdrawal, ratio of 53 percent for the
first half of the current year represents an improvement of 2 points over that for the same months of
1944.
During June, gross receipts of private savings by
all associations amounted to about $204,000,000 and
withdrawals totaled $79,000,000. As a result, approximately $125,000,000 was added to private repurchasable capital. In June 1944, receipts exceeded
withdrawals by approximately $100,000,000.
INSURED ASSOCIATIONS—Six-month
increase shown in total resources
F L O W OF PRIVATE REPURCHASABLE CAPITAL
During the first half of this year it is estimated
that gross receipts of private savings by all operatingassociations approximated $1,092,000,000, an increase of 21 percent over the same 1944 period.
This was a continuation of the upward trend evident
in the past several years. Savings withdrawals have
Share investments a n d repurchases, June 1 9 4 5
[Dollar amounts are shown in thousands]
I t e m a n d period
All associations
All insured
associations
Uninsured
members
Xonmembers
Share i n v e s t m e n t s :
l s t 6 m o s . 1945__ $1. 092, 425'$886, 544 $129, 826 $76, 055
l s t 6 m o s . 1944__
$900, 593 $693, 308 $125,410 $81, 875
Percent change
+ 21
+ 28
+ 4
-7
J u n e 1945
$204, 443 $163, 156 $26, 057 $15, 230
J u n e 1944
$167, 661 $127, 945 $25, 381 $14, 335
Percent change
+ 22
+ 28
+ 3
+ 6
Repurchases:
1st 6 mos. 1945 _
l s t 6 m o s . 1944__
Percent change
J u n e 1945_
J u n e 1944
Percent change
Repurchase
ratio
(percent):
1st 6 mos. 1 9 4 5 . _
1st 6 mos. 1944__
J u n e 1945
J u n e 1944
$579, 327 $443, 480
$494, 227 $360, 777
+ 17
+ 23
$78, 868 $56, 279
$67, 710 $46, 560
+ 16
+ 21
53. 0
54. 9
38. 6
40.4
50.0
52.0
34. 5
36. 4
$84, 497 $51, 350
$79, 973 $53, 477
+ 6
-4
$14, 894 $7, 695
$14, 053 $7, 097
+ 6
+ 8
65.
63.
57.
55.
1
8
2
4
67.
65.
50.
49.
5
3
5
5
At mid-year 1945, the 2,471 insured associations
had total resources of approximately $5,550,000,000,
representing a gain of $537,000,000, or 11 percent,
since the beginning of the year. Their private repurchasable capital which totaled $4,787,000,000 OD
June 30 (10 percent more than six months earlier)
was held by 4,200,000 investors whose accounts
averaged $1,132. Although these institutions made
approximately $628,000,000 of new mortgage loans
during the first six months of this year, their net
mortgage loan balance increased only $174,000,000
to a total of $3,434,000,000 due to the continuing
high rate of mortgage repayments.
Insured associations received approximately $163,000,000 during June from private investors and paid
out about $56,000,000 in withdrawals. The ratio of
repurchases to new investments, 34 percent, compared favorably with the ratio of 36 percent shown in
June of last year.
Total liquid resources of all insured associations
continued to expand during the first half of this year
and on June 30 amounted to $1,869,000,000, nearly
34 percent of total resources. Since the first of the
year, U. S. Government bond holdings of these institutions have increased 29 percent to $1,586,000,000
and now represent 28.6 percent of total assets. At
the end of 1944, Government securities represented
24.5 percent of the total resources of these institutions and on June 30 last year, 20.8 percent. Cash
on hand and in banks amounted to $283,000,000, or
5.1 percent of assets.
330
[TABLE 13.]
Federal Home Loan Bank Review
Progress in number a n d assets of Federals
Commissions
[Dollar amounts are shown in thousands]
{Continued from p. 317)
combination of which could prove to be disastrous
in the future: (1) the maintenance of an unjustifiably high rate of dividend; (2) the inability to build
sufficient reserves for continued safety; (3) the desire
to expand too rapidly, with the result that loans may
be made recklessly; (4) the chance that such funds
might prove to be " hot money" and demands made
for withdrawals at a time when the association is
least prepared to meet such demands; (5) the extra
expense occasioned by attracting funds through
brokers; (6) the fact that management in some
degree is turning over its functions to outsiders who
have no interest in the association or the community
it was chartered to serve.
With all these dangers inherent in paying commissions for share capital, it is to be questioned whether
the immediate advantages and the opportunity to
increase assets rapidly is worth the risk taken—in
contrast to a longer-range but safer program of
educating folks in the community to the value of their
savings and loan association as a local enterprise and
the advantages it offers as a safe place in which to
invest money. I t is submitted that an association
which is willing to be patient and develop on a
sounder, longer-pull basis will be still serving the
community when some of the other type may be
having their troubles and adding nothing to the
reputation and prestige of the industry.
Number
Class of association
New
_ _ _
Converted
Total
J u n e 30, M a y 31,
1945
1945
631
834
1,465
Approximate assets
J u n e 30,
1945
M a y 31,
1945
632 $1, 212, 465 $1, 134, 934
834 2, 315, 562 2, 202, 714
1,466
3, 528, 027
3, 337, 648
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
Assets of the 1,465 Federal savings and loan associations aggregated $3,528,000,000 at the end of
June after gaining $359,000,000, or 11 percent, since
January 1. The net balance of new mortgages held
by these institutions rose $107,000,000 during this
period to $2,165,000,000, a gain of 5 percent. Federals had $1,231,000,000, or 35 percent, of their
total assets in liquid form.
FORECLOSURES-Levelin S
in decline indicated
During the first six months of 1945 nonfarm real
estate foreclosures declined to a new low for the
January-June period, with the number of such actions estimated at 7,785 for the United States. This
represented a reduction of 15 percent from those
completed during the comparable period of 1944 and
was 45 percent less than in the first half of 1943.
The improvement from last year, however, was nob
nationwide. Eight Bank Districts showed decreases
varying from 6 percent in Portland to 35 percent in
Boston. The other four reported gains—18 percent
in Little Rock to 81 percent in Indianapolis.
Total foreclosures during the three months ending
in June were estimated at 3,861, or 2 percent lower
than in the first quarter of the year and 13 percent
under the April-June period in 1944. Increases over
the first quarter of 1945 were reported for 26 states
and the District of Columbia.
The fact that there have been increases in a constantly widening area may be an indication that
foreclosures have about reached their lowest point.
For a period of more than a year the adjusted index
of nonfarm foreclosures has shown definite signs of
leveling off, fluctuating between 9.1 and 11.4 percent of the 1935-1939 average. At the end of June
the figure was still within this range, standing at
10 percent.
[TABLE 15.]
August 1945
Direct Redemption Agents
B
A recent change in Treasury regulations enables
savings and loan associations and cooperative
banks to qualify as direct agents in the redemption of
U. S. savings bonds—series A through E. Heretofore, these institutions acted merely as sub-agents
of the F H L Banks or commercial banks.
Application-Agreement forms (P. D. 1958 Revised) may be obtained from Federal Reserve
Banks which, after the approval of these forms, will
supply such others as are required. No change has
been made in the over-all procedure for redeeming
bonds other than that settlements will now be made
directly with a Federal Reserve Bank.
However, the new regulation provides for a change
in compensation allowed for this service. For the
first 1,000 bonds redeemed in any one calendar
quarter, $0.15 will be paid. Compensation for the
redemption of each bond over 1,000 will be $0.10.
331
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 1945, by Federal Home Loan Bank District and by state
[Source: U . S . Department of Labor]
[Dollar amounts are shown in thousands]
All residential s t r u c t u r e s
N u m b e r of family
dwelling u n i t s
F e d e r a l H o m e L o a n B a n k District a n d s t a t e
J u n e 1945
U N I T E D STATES
.
8,947
$45,466
231
90
975
277
47
2
39 !
2 !
224 !
6
1,003
206
i i
69 i
1
47
2
39
2
124
6
625
1
210
9
206
1
69
1
210
9
3,989
28
4
144
2
51
2
954
486
56
2,440
181
110
844
278
208
34
22
1,383
1,057
110
71
298
167
133
614
298
96
6
272
20
2
124
41
2
109
22
4
530
80
6
272
20
1,907
4,237
4, 770
1,342
1,164
3,866
2,965
162
499
747
93
171
49
24
162
467
405
1,057
419
121
781
87
900
213
1,529
1,809
126
447
61
39
546
193
83
371
170
29
226
48
222
158
111
404
93
163
49
24
162
302
325
958
404
121
781
75
900
203
460
1,119
126
411
61
39
546
1,009
1,457
5, 566
5,388
935
1,457
5, 266
5,387
_._
45
753
211
7
1,181
269
94
4,881
591
17
4,399
972
41
683
211
1,181
269
82
4, 593
591
17
4,398
972
...
1,353
1,501
7, 782
5,657
1,314
689
7, 652
3,152
_
273
1,080
322
1,179
1,004
6,778
1,065
4,592
249
1,065
222
467
946
6, 706
859
2,293
759
666
3,786
2,425
702
597
3, 559
2,194
368
391
597
69
1,822
1,964
2, 308
117
356
346
528
69
1, 777
1, 782
2,077
117
...
454
125
1,786
380
451
125 |
1,770
380
___
51
246
107
23
27
63
19
41
204
29
146
204
29
146
2
1,182
303
73
77
1,788
2,038
3, 918
4,461
51
246
104
23
27 1
1,494
135
2
135
1,182
319
73
77
1, 527
3, 406
3,251
63
272
119
70
1,264
37
626
51
81
1,243
96
375
146
230
3,071
15
1,531
56
121
2, 738
63
116
119
26
1,170
37
185
51
81
1,173 1
96
217
146
142
2,805
15
504
56
121
2,555
440
296
1,408
834
440
292
1,408
833
133
69
66
172
73
88
52
83
503
146
270
489
222
263
267
82
133 !
69 j
66
172
73
88
52
79
503
146
270
489
222
263
267
81
691
624
3,011
2,202
681
603
2, 997
2,158
77
32
181
60
292
49
30
13
91
260
221
9 |
336
96
688
189
1, 436
266
57
40
218
1,040
820
27
77 1
' 32
177
60
286
26
13
91
252
212
336
96
684
189
1, 426
266
41
40
218
1,024
808
27
4, 247
2,518 1
14,985
8,432
2, 738
2, 214
11, 513
7, 527
105
26 1
2,492
517
51
8, 381
101
2, 548
26
2,188
495
10, 881
137
51
7,476
4 1
!
_|
J
.
|
252
2
51
2
j
811
i
565
246
169
2,829
1,160
179
133
663
No. 3—Pittsburgh
2 1
.
132 |
45
_
N o . 4—Winston-Salem
N o . 5—Cincinnati
1,475
237 1
113 I
423
173
_
|
._
29 1
.
226 |
52
222
.
Kentucky
Ohio
Tennessee
_._„
N o . 6—Indianapolis
Indiana _
Michigan.
_
_.
.
..
.__
_ __
_
_
N o . 7—Chicago...
_
...
.
Illinois
Wisconsin
.
.
___ _
...
___ ...
______
____
N o . 8—Des M o i n e s
....
_ _
_________
Iowa .
Minnesota..
M i s s o u r i . . _ __
North Dakota _ _ _
South Dakota
_
_ _
_._ ___ _
_
_ _ _ _ ' _
._
...
_
_.
N o . 9—Little R o c k
._
_
_ ___ _
_
_ ...
_ __
Arkansas
.__
_ ___ _ . . .
__ _ .__
Louisiana.. _
_
____
__ ____
____.._
Mississippi
_
._._ . . .
__
N e w Mexico. _ _ _ _ _
_ ._ .
Texas
_
_ _ _
N o . 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma
. . .
N o . 11—Portland
__
._
_
_
_ _ __ . . .
_
_ ...
_
__.
.
Idaho.._
M o n t a n a ____
_______
Oregon__
Utah
W a s h i n g t o n . __ _
W y o m i n g . . . __ _
_
__._
___
_
_ ... _
..
_
____
__
_ _ _ _ _
N o . 12—Los Angeles
Arizona _
California.-.
Nevada .
_
63
_
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
_
j
.__ _
1
_ _
_
_
J u n e 1944
10,981
N o . 2—New Y o r k
Delaware..Pennsylvania
W e s t Virginia
J u n e 1945
277
__
_
J u n e 1944
1,453 ;
_.
.
J u n e 1945
$52,584 ;
__
N e w Jersey
New York
J u n e 1944
Permit valuation
90
.__ __
..
J u n e 1945
N u m b e r of family
dwelling u n i t s
j
11,558
374
_
P e r m i t v aluation
J u n e 1944
13,580
_. .
N o . 1—Boston
Connecticut..
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
All p r i v a t e 1- a n d 2-family s t r u c t u r e s
__
_ _ _ _ _ _ _ _
4,053
89
203
34 1
2
109
22
$36,078 !
1
4
563 I
1
14, 331
137
1
1
49
89
1
63 1
19
41
9 1
$28, 603
1
1
332
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: TJ. S. Department of Labor]
[Dollar amounts are shown in thousands]
N u m b e r of family dwelling u n i t s
T y p e of construction
M o n t h l y totals
P r i v a t e construction
1-family dwellings __
2-family dwellings i. _ _. _ _
3-and more-family dwellings
__.
2
Public construction
Total urban construction.
1
2
Permit valuation
1944
J u n e 1945
M a y 1945
J u n e 1944
11,982
11, 207
9,973
51,056
10, 437
544
1,001
9,503
933
771
7, 554
1,393
1,026
41,773
3,819
5,464
1945
J a n u a r y - J u n e totals
M o n t h l y totals
J a n u a r y - J u n e totals
1945
1944
J u n e 1945
M a y 1945
J u n e 1944
53, 348
48,161
42,920
31,676
175,227
168,606
40, 234
5,903
7,211
43, 551
1,915
2,695
37, 583
3,148
2,189
23, 692
4,910
3,074
147, 973
12, 639
14, 615
127,361
20,182
21,063
1,598
1,283
1,585
5,912
11,152
4,423
3,393
4,402
10, 212
26, 746
13, 580
12,490
11,558
56,968
64, 500
52, 584
46, 313
36,078
185,439
195, 352
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
1945
1943
1942
1941
1940
1939
July
July
July
July
July
F e d e r a l H o m e L o a n B a n k District
a n d city
July
N o . 2—New Y o r k :
Camden, N . J
Newark, N . J
Albany, N . Y
Buffalo, N . Y
.
N o . 8—Des M o i n e s :
D e s M o i n e s , Iowa* __. ___ St. Louis, M o . *
Sioux Falls, S. D . *
Jan.
145.2
161.9
151.6
147.1
145.2
161.9
151.4
149.4
143.2
159.7
148.0
r 144. 6
-
140. 5
153. 6
139.5
152.9
._
120.8
133.2
133.0
138.9
141.5
129.5
139. 5
_._ _ __
N o . 6—Indianapolis:
Indianapolis, Ind.*
D e t r o i t , Mich.*
April
N o . 11—Portland:
Boise, I d a h o *
_ _._
. . _._
P o r t l a n d , Ore.*
. . . . ._
Salt L a k e C i t y , U t a h *
_. __
Seattle, W a s h . *
__
Oct.
July
r 144. 6
143.6
159.3
143.8
142.1
136.4
149.7
137.6
130.2
138.9
146.3
130.9
128.2
126.6
311.1
120.6
117.3
108.8
106.7
102.5
r 104. 5
101. 8
102. 6
100.4
99.2
138.1
152.3
137.3
152.1
136.6
152.6
121.3
129.8
118.8
124.3
108.5
112.3
'99.1
102.4
r 105. 2
107. 2
120.8
127.1
131.9
120.7
126.7
130.8
120.9
124.6
130.8
121.1
123.0
130.4
116.1
119.0
126.2
116.7
126.5
124.2
106.1
111.4
111.1
102.8
100.1
103.3
101.8
96.5
100.8
138.1
143.4
129.1
138.9
138.1
143. 4
129.7
138.9
139.1
143.6
129.7
138.9
137.1
140.9
126. 8
134.6
126.9
132.6
122.9
131.0
126.0
120.1
120.1
122.1
117.5
105.1
111.7
112.7
106.5
'98.7
102.7
103.3
r 103.4
' 95. 4
102.8
101. 9'
*Indexes of July 1941 and thereafter have been revised in order to use retail material prices collected by the Bureau of Labor Statistics.
Revised.
This index is designed to measure the changes in the costs of constructing a standard frame house and to provide a basis for the study of the trend of costs within an
individual community or in different cities. The various units of materials and labor are selected in accordance with their contribution to the total cost of the completed
dwelling.
Material costs are based on prices for a limited bill of the more important items. Current prices are furnished by the Bureau of Labor Statistics and are based on
information from a group of dealers in each city who report on prices for material delivered to job site, in average quantities, for residential construction. Because of
wartime conditions, some of the regular items are not available at times and, therefore, substitutions must be made of similar products which are being sold in the
current market.
Labor costs are based on prevailing rates for residential construction and reflect total earnings, including overtime and bonus pay. Either union or nonunion ratesare used according to which prevails in the majority of cases within the community.
Figures presented in this table include all revisions up to the present time. Revisions are unavoidable, however, as more complete information is obtained and
becomes available for inclusion in this table.
Cities in F H L B Districts 2, 6, 8, and 11 report in January, April, July, and October of each year; those in Districts 3, 5, 9 and 12 report in February, May, August
and November; and those in Districts 1, 4, 7 and 10 report in March, June, September and December.
r
1
August 1945
333
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Average month of 1935-1939=100]
J u n e 1945 M a y 1945 A p r . 1945 M a r . 1945 F e b . 1945 J a n . 1945 D e c . 1944 N o v . 1944
E l e m e n t of cost
Material
Labor
Total
r
_-
132.7
140.8
132.5
r 140. 7
' 132.4
r 140.7
•• 132.3
' 140.4
135.4
' 135.2
r 135. 2
135.0
r
Oct. 1944 Sept. 1944 A u g . 1944 J u l y 1944 J u n e 1944
131.9
140.1
131.7
140.1
131.5
140.0
131.5
139.9
131.3
139.1
131.2
138.5
131.3
137.3
131.0
137.3
130.7
137.5
134.7
134.5
134.4
134.4
133.9
133.7
133.3
133.1
133.0
Revised.
Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States
[Source: U. S. Department of Labor]
[1935-1939=100; converted from 1926 base]
All b u i l d i n g
materials
Period
Brick a n d
tile
Lumber
Cement
Paint and
paint materials
Plumbing
and heating
Structural
steel
Other
1943: J u n e
123.5
109.0
102.7
' 154.6
125.4
118.8
103.5
110.0
1944: J u n e
July
August-—
September
October
November
December
129.4
129.4
129.5
129.5
129.9
130.0
130.0
110.7
110.8
110.8
111.7
115.3
115.6
115.9
105.8
105.8
105.8
106.3
107.0
107.2
107.0
171.5
171.7
171.9
171.5
171.3
171.3
171.3
130.0
129.7
129.7
129.7
130.-8
130.7
130.7
121.4
121.4
121.4
121.4
121.4
121.4
121.4
103.5
103.5
103.5
103.5
103.5
103.5
103.5
111.4
111.5
111.6
111.7
111.7
111.7
111.7
130.4
130.6
130.8
130.8
131.0
131.1
121.5
121.6
121.8
121.7
121.8
122.1
106.9
108.7
109.1
109.1
109.1
109.1
171.3
171.4
171.3
171.4
171.9
172. 5
130.7
130.8
130.7
130. 7
130.8
130.7
121.4
121.4
121.4
121.4
121.4
121.7
103.5
103.5
103.5
103.5
103. 5
103.5
111.9
112.0
112.3
112.3
112.6
112.8
+0.1
+1.3
+0.2
+10.3
0.0
+3.1
+0.3
+0.6
-0.1
+0.5
+0.2
+0.2
0.0
0.0
+0.2
+1.3
.-.
_
1945: J a n u a r y
February.
March
April
May
June
_ _-
_ .
._
_
P e r c e n t change:
J u n e 1945-May 1945
J u n e 1945-June 1944
r
Revised.
Table 6. - M O R T G A G E LENDING—Estimated volume of new home mortgage loans by all savings
and loan associations, by purpose and class of association
[Thousands of dollars]
P u r p o s e of loans
Period
1943
J a n u a r y - J u n e ... ..
June
. . . . . . .
- -
...
.
_-- - - -
1944
January-June
June. .
July
August
September
October.
November
December.
- . - . .
- ^
_
_
1945
January-June
January..
February
March
April
May
June
_.
_
_
_
.-_
_.
334
. .- -. . . . -
.-
Class of association
Reconditioning
L o a n s for
all o t h e r
purposes
Total
loans
Construction
H o m e purchase
Refinancing
$106,497
$802,371
$167,254
$30,441
$77,398
$1,183,961
$511, 757
$539,299
48,177
334,938
84,588
13,794
34,969
516,466
219,088
236,141
61,237
8,946
74,885
15,913
2,707
6,425
108,876
46, 730
50,182
11, 964
95,243
1,064,017
163,813
30,751
100,228
1,454,052
669,433
648,670
135,949
58,679
490,700
79,222
14,350
48,196
691,147
315,851
308,485
66,811
9,663
7,078
7,589
5,923
6,095
4,635
5,244
103,276
93,232
105,050
101,884
101,461
90,182
81,508
14,963
13,871
14,152
14,495
15,253
13,265
13,555
2,957
2,841
3,067
3,160
2,699
2,507
2,127
9,850
8,014
8,816
8,993
9,720
7,785
8,704
140, 709
125,036
138,674
134,455
135, 228
118,374
111,138
64,474
57,164
64,400
63,489
61,965
54,978
51, 586
63,851
56,539
61,377
59,162
60,945
52,241
49,921
12, 384
11,333
12,897
11,804
12,318
11,155
9,631
54,399
610,668
90,447
16,132
62,289
833,935
392,354
367,810
73,771
3,772
3,081
7,406
9,541
13,032
17,567
76,495
78,140
105,307
113,684
120,244
116,798
12,167
12,524
15,922
16,800
15,887
17,147
1,868
1,994
2,559
2,951
3,396
3,364
7,999
10,270
10,287
10, 778
10,520
12,435
102,301
106,009
141,481
153, 754
163,079
167,311
46,439
49,900
69,430
71,375
75,607
79,603
46,452
46.575
60,688
67,955
71,921
74,219
9,410
9,534
11,363
14,424
15,551
13,489
Federals
State
members
Nonmembers
$132,905
Fee/era/ Home Loan Bank Review
Table 7.—LENDING—Estimated
volume of
new loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm
mortgage recordings, $20,000 and under
[Dollar amounts are shown in thousands]
JUNE 1945
[Thousands of dollarsl
C u m u l a t i v e new loans
(6 m o n t h s )
N e w loans
Federal H o m e Loan
Bank District and
class of association
May
1945
June
1944
1945
1944
$167, 311 $163, 079 $140, 709 $833, 935 $691,147
U N I T E D STATES
Percent
change
+20.7
79, 603
74, 219
13, 489
75,607
71, 921
15, 551
64, 474
63,851
12,384
392, 354
367,810
73,771
315, 851
308,485
66, 811
+24.2
+19.2
+10.4
13, 007
11, 782
12,085
56, 441
48, 965
+15. 3
5,550
6, 306
1,151
4,940
5,242
1, 600
4,609
6,010
1,466
23,296
26,830
6,315
17, 416
25,060
6,489
+33. 8
+7.1
-2.7
17, 226
17, 680
13,864
81,037
57, 354
+41.3
6,190
8,586
2,450
6, 263
7,990
3,427
4,691
6,968
2,205
28, 524
38, 727
13,786
16, 825
30, 260
10,269
+69. 5
+28.0
+34.2
14, 261
14, 989
11,129
71, 034
57,419
+23. 7
6,857
5,090
2,314
6,655
5,272
3,062
5,072
3,969
2,088
32, 981
25,001
13,052
26, 325
19,065
12, 029
+25.3
+31.1
+8.5
___ -
19,169
19. 868
16, 888
102,396
83,867
+22.1
Federal
State member
N o n m e m b e r - . .__ _.
10, 298
7,706
1,165
10, 433
8,366
1,069
9,115
6,718
1,055
54, 748
41,912
5, 736
45, 463
33.412
4,992
+20.4
+25.4
+14.9
27, 691
27, 445
23,804
137, 936
117, 523
+17.4
Federal
- _ _ .
S t a t e m e m b e r . . _.
Nonmember. _
Boston
Federal
State member
Nonmember
. _
Xew York _
Federal
State member-._ _ _
Nonmember
Pittsburgh
Federal
_ ... _
State member,__ . . .
N o n m e m b e r .__
Winston-Salem,
Cincinnati-- _
FederalState member
Nonmember-.
- - -
Indianapolis.
Federal—
State m e m b e r . _ .
Nonmember
_
Chicago
.. _
Federal.. _ _
State member
Nonmember—
Des Moines
_ _ ...
Federal—
State member
Nonmember.,.
L i t t l e Rock.—
r
June
1945
Federal... _
State member
Nonmember..
Topeka.....
Federal . . . .
State member
Nonmember
U N I T E D STATES
681
4,868
9,599
6,250
2,973
39,114
1,648
667
10, 614
455
1,125
234
471
32
153
25
1,872
288
1,888
186
539
95
1,427
795
5,853
679
460
385
1,900
524
2,830
289
481
226
946
81
1,525
46
350
25
8,264
2,387
22, 863
1,680
2,955
965
New York..-
15, 533
2,154
7,992
6,705
19,024
6,684
58,092
N e w Jersey
New York
4, 538
10, 995
916
1, 238
3,381
4,611
796
5,909
4,879
14,145
2,356
4,328
16,866
41, 226
_
14, 935
2,251
8,324
628
7,929
3,677
37, 744
Delaware..
_
Pennsylvania
W e s t Virginia
. .
204
13,897
834
159
1,886
206
218
6.641
1,465
108
520
278
6,812
839
103
3,418
156
1,070
33,174
3, 500
Winston-Salem.__
- .
17, 556
2,771
6,621
140
17, 236
4,823
49,147
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 _._
725
2,974
1, 975
1,821
4,664
2,398
408
2,591
224
368
712
257
139
552
217
302
424
1,021
996
1,202
952
451
443
1,132
-
33, 052
1.987
12, 590
_—
3.186
28, 967
899
385 1,163
1,023 10, 426
579 1,001
Pittsburgh
Cincinnati
11,963
13, 673
1,809
9,819
12,314
1,671
59,430
69, 243
9,263
47, 542
59, 766
10, 215
+25.0
+15.9
-9.3
8,805
9,475
7,635
46, 921
37, 997
+23.5
Indianapolis
3, 918
3,382
335
25, 022
19, 591
2,308
95, 617
77, 700
8,988
9,739
1,416
7,555
9,124
1,303
6,623
8,296
1,133
40, 775
47, 274
7,568
32, 079
38, 891
6,730
+27.1
+21.6
+12. 5
9,876
9,157
8,754
48, 992
41, 677
+17.6
5,154
3,244
1,478
4,951
3,151
1, 055
4,733
3,000
1,021
24, 938
17, 427
6,627
20,889
15,162
5,626
+19.4
+14.9
+17.8
6,766
7,276
7,077
39, 950
39, 280
+1.7
3,529
3,169
68
3,405
3,751
120
2,712
4,299
66
19, 840
19, 592
518
15, 693
23,161
426
+26.4
-15.4
+21.6
7,386
7,682
6,354
42, 302
33,141
+27.6
4,176
2,089
1,121
4,050
2,257
1, 375
3,593
1,725
1,036
22, 719
12, 469
7,114
17, 239
9,080
6,822
+31.8
+37.3
+4.3
5, 583
3,151
2,275
157
Federal..
State member.
Nonmember
Los Angeles
Federal
State member
N o n m e m ber
._
5,805
2,987
2,648
170
4,739
2,917
1,572
250
29, 344
17, 545
10, 877
922
21, 942
14, 698
6,312
932
+19. 4
+72.3
-1.1
17, 398
13, 938
12, 328
81,965
74, 282
9.097
8,180
121
7,256
6, 587
95
6,672
5,598
58
42, 536
38,867
562
43, 205
30, 576
501
-1.5
+27.1
+12.2
60,184
569
172
1,405
3,312
5.304
48,431
6,449
31
3,901
1,672
26, 579
3,614
5,344
31
1,285
2,616
691
981
12, 700
13, 879
20, 515
1,514
6,288
23
7,844
9,290
45,474
16,059
4,456
1,210
304
3,858
2,430
23
4,519
3,325
8,498
792
34,144
11, 330
10,863
1,892
7,759
326
5,948
5,117
31,905
3,069
3,741
3,488
340
225
207
314
1,317
38
16
1,963
1,784 ~~~~326
3,682
117
213
1,078
1, 566
3,042
121
141
444
1,561
3,079
24
9
6,761
9,292
14, 608
640
604
Little R o c k . _ . _ _ —
8,652
2,894
2,240
7,981
2,797
24, 564
Arkansas
__—
Louisiana
__ ._ Mississippi.
.
N e w Mexico
- .
Texas
_
539
2,173
425
146
5,369
83
338
103
11
2,359
381
164
270
116
1,309
431
1, 691
480
232
5,147
81
^ 573
146
26
1,971
1,515
4,939
1,424
531
16.155
.
8,653
819
2,664
5,801
1,824
19, 761
.. .
1,518
2,597
1,372
3,166
88
160
318
253
641
811
443
769
3,237
599
504
1,461
628
284
155
757
6,112
4,451
2,792
6,406
4,765
436
4,445
4,307
2,306
16,810
_ .
. . ._ _
368
379
1,115
481
2,209
213
28
25
221
85
77
228
199
512
663
2,635
208
409
409
1,594
409
1,043
443
105
19
355
112
1,688
27
1,138
1,031
3,844
1,750
8,156
891
_
16, 846
2,323 18, 587
28,482 11, 429
77, 667
376
16, 381
89
67
550
2,240 17,903
134
16
77
1,268
26, 904 11, 333
19
310
2.338
74, 761
568
.
_ _.
Chicago
.._ _ .—
.
-
Iowa
_ .
Minnesota
Missouri _ _._
North Dakota
Topeka
.
Colorado - —
Kansas
Nebraska
Oklahoma
._
551
+33.7
+10.3
August 194S
4,889
398
6,041
658
8,958
Portland
Portland
7,097
739
1,340
Des M o i n e s
16, 052
569
140
2,079
Illinois
Wisconsin
17, 982
355
2,727
881
7,839
1,240
10,860
503
5,133
307
7,944
694
5,484
321
2,123
522 - 7,037
9,938
+35.4
+10.4
+29.7
20,143
-_
999
2,595
5, 937
1,350
1,742
1,389
734
2,490
6,340
3,598
Indiana
Michigan
18, 477
17, 740
1, 780
+23.1
$176,051 $21,801 $91,336 $18, 572 $121,800 $57,481 $487,041
_.
C o n n e c t i c u t . . _Maine
_ _ _.
Massachusetts..- _ New Hampshire
R h o d e I s l a n d . . _ ._
V e r m o n t . .__
11, 601
14,394
1,696
5,149
3,860
466
...
Total
14, 743
Boston
Kentucky
Ohio
Tennessee
5,012
3,441
352
Savings Insur- B a n k s M u Other
and
and
ance
t u a l Individ- m o r t loan
com- t r u s t savings uals
gagees
associa- panies com- b a n k s
panies
tions
Federal Home Loan
Bank District
and state
Idaho
Montana
Oregon
Utah
Washington
Wyoming
Los Angeles
Arizona
California
Nevada
._ __ .
47
504
335
Tabic 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
Mutual savings
banks
Banks and trust
companies
Other mortgagees
Individuals
All mortgagees
Period
Percent
Total
Total
Percent
Total
Total
Percent
Percent
Total
Total
Percent
Total
Percent
I Percent
$1,563,678
33.9
$1,134,054
24.6
725,872
145,893
138, 762
149, 835
146,151
148,131
134,359
120, 568
33.4
34.6
33.7
34.8
35.1
35.0
34.1
33.5
125,678
22. 215
24, 707
22, 646
22,432
20,985
20, 543
19,182
5.8
5.3
6.0
5.2
5.4
5.0
5.2
5.3
424,070
79, 453
80,858
83,094
77, 000
76,181
71, 752
64,807
19.5
18.8
19.7
19.3
18.5
18.0
18.2
18.0
73,036
15. 536
15, 261
15,920
15,447
16, 552
15,176
13, 662
3.3
3.7
3.7
3.7
3.7
3.9
3.9
3.8
518,318
99,140
98,194
104, 215
104,479
109, 767
103, 513
95, 568
23.8
23.5
23.9
24.2
25.1
26.0
26.3
26.5
308,853
59, 394
53, 354
55,066
50, 676
51, 223
48, 296
46,440
14.2
14.1
13.0
12.8
12.2
12.1
12.3
12.9
2,175,827
421,631
411,136
430, 776
416,185
422,839
393, 639
360, 227
100.0
100.0
100.0
100.0
100-0
100.0
100.0
100.0
879,670
111,480
111,176
151,361
157,181
172, 421
176,051
34.4
31.4
32.8
34.9
34.5
35.4
36.1
117,563
17,882
16, 034
20, 669
19,718
21, 459
21,801
4.6
5.0
4.7
4.8
4.3
4.4
4.5
480,150
65,109
63,933
80, 000
88, 749
91,023
91,336
18.8
18.4
18.9
18.5
19.5
18.7
18.8
89,675
12, 500
10, 343
13, 599
15,680
18, 981
18,572
3.5
3.5
3.1
3.1
3.4
3.9
3.8
673,781
99, 200
93, 248
114,971
118,713
125,849
121,800
26.3
28.0
27.5
26.5
26.1
25.8
25.0
316,039
48,407
43,963
52, 737
55, 749
57, 702
57,481
12.4
13.7
13.0
12.2
12.2
11.8
11.8
2,556,878
354, 578
338,697
433, 337
455, 790
487, 435
487,041
100.0
100.0
100.0
100.0
100.0
100.0
100.0
January-June.
June....
July
August...
September
October
November
December
7, 762
$256,173
19.0
$165,054
$613,908
100.0
$4,610,629
13.3
1945
January-JuneJanuary
...
February
March
April
May
June..-.
Table 1 0 — S A V I N G S — S a l e s of war bonds 1
Table 1 1 . — F H A — H o m e mortgages insured *
[Thousands of dollars]
Period
Series E
1944
June
July. . .
August
September
October
November.
December
1945
Januarv.
February
March _
April
May
June
_-_
Series F
$12,379,891
$772,767
1, 349, 794
1,686, 509
499,357
590, 827
598, 570
806,817
1, 855, 300
115,119
101,082
17, 807
15,953
13,653
42, 680
124, 669
803,819
653,222
712,133
684,424
1,194,712
1, 467, 673
Series G
[Premium paying; thousands of dollars]
Redemptions
Total
$2,891,427 $16,044,085
377, 284
337,459
85, 272
85, 286
82,871
173, 858
405, 880
42,034
30,695
26, 487
23,112
62,940
178, 003
228,327
164,073
If0,4f6
130,100
282, 437
532, 379
1,842,197
2,125,050
602,436
692,066
695,094
1,023,355
2,385, 849
1,074,180
847,990
889,076
837,636
1,540,089
2,178,055
Title I I
New
$3, 263,168
241, 278
220,145
272,125
277,445
394, 846
376,053
358, 572
333, 443
317,083
437, 892
381,198
404, 209
382, 536
i U. S. Treasury War Savings Staff. Actual deposits made to the credit of
the U. S. Treasury.
1944: J u n e
July
August..
September
October
November
December
Total
insured
a t e n d of
period
Title V I
(603)
Period
.
. _.
1945: J a n u a r y
February
March
April..
May
June
Existing
$81
82
90
79
40
54
31
$17,768
18,322
20, 256
19,967
21,941
21, 646
18, 269
$34,238
42,322
48,166
42, 592
43,354
38, 053
36, 573
$3,263,168
5, 713, 449
5, 781,961
5, 844, 599
5,909. 934
5,969,687
6, 024, 560
67
27
37
63
80
374
19, 006
14,085
16,480
14,813
22,272
18, 841
38,640
31,417
29,886
26,885
23,707
20, 413
6,082, 273
6,127, 802
6,174,205
6, 215,966
6,262,025
6.301,653
i Figures represent gross insurance written during the period and do not take
account of principal repayments on previously insured loans.
Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities
[Thousands of dollars]
L e n d i n g operations
J u n e 1945
P r i n c i p a l assets J u n e 30, 1945
C a p i t a l a n d principal liabilities
J u n e 30, 1945
Federal H o m e Loan Bank
Advances
Repayments
Advances
outstanding
Cashi
Boston
_ _ ...
_.
New York.
Pittsburgh... . . . . . . . .
Winston-Salem
.
. ______
Cincinnati
Indianapolis
Chicago.
.
.. _
Des Moines
Little R o c k . .
.
Topeka.._
.
Portland .
Los Angeles
$2, 774
4,219
5,389
7,840
10,187
4,102
18, 787
7,854
1,814
1,394
2,368
20, 006
$228
553
539
157
280
464
1,942
178
513
372
10
756
$9, 575
6,834
11,104
11. 269
11,844
8.110
26, 202
9,854
4,352
3,502
2,368
26, 652
$599
5,114
2,639
274
4,840
4,151
2,688
824
1,194
872
671
1,021
J u n e 1945 ( c o m b i n e d total)
Government
securities
Capital2
Debentures
$13,036
32, 049
10, 873
7,136
24, 704
14, 291
6, 329
12, 495
9,117
8.221
10, 861
10, 651
$20, 261
28, 084
17,127
18,346
28, 010
15,126
23, 832
13, 573
12, 610
10,945
8, 679
16, 822
$2, 000
5,000
5,500
0
2,500
5,000
6,000
8,500
2,000
1,000
2,000
IC, 500
T o t a l assets 1
J u n e 30,1945
Member
deposits
$914
11, 050
2,038
371
10, 801
6,407
5,287
1,087
35
644
1,208
5,486
$23, 280
44,163
24, 698
18, 721
41, 558
26, 665
35,312
23, 288
14, 711
12,642
13, 937
38,360
86, 734
5,992
131,666
24, 887
159, 763
213, 415
50, 000
45, 328
317,335
M a y 1945
6,307
7,423
50, 924
23,475
271, 929
211, 303
50,000
86,359
347, 994
J u n e 1944
64,833
8,162
128, 278
22, 657
131, 973
203,479
58, 000
21,360
283,693
1
2
Includes interbank deposits.
Capital stock, surplus, and undivided profits.
336
Federal Home Loan Bank Review
Tabic 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
[Dollar a m o u n t s are s h o w n ii i t h o u s a n d s ]
!
I
Number 1
Period a n d class of association i of associations |
Operations
N e t first
| mortgages
held
Total
assets
F e d e r a l 1.
Private j Govern- { H o m e I
ment i
repurLoan 1 New
chasable J share
Bank 1 mortcapital i capital
gage
advances
loans
Government
bond
holdings
Cash
N e w pri- P r i v a t e
1 vate
repur1 investchases
ments j
Repurchase
ratio
ALL INSURED
2,374
2,398
3,461,228
3,651,598
2,827,956
2,871,641
219,374
256,470
70,852
193,452
2,736,258
2,983,310
185,783
169,167
170,066 1
113,977 I
179,663
46,705
2,415
2,428
2,440
2,447
3, 690, 918
3, 880, 999
4,037,926
4,182, 728
2,868,410
2,918, 577
2,971,411
3,009,025
260, 749
276, 785
186,954
302, 556
241,818
376,177
580,087
581,651
3,105,080
3,270,834
3,389,891
3,573,896 |
120,138
119,252
69,920
69,693
66,970 1
78,155 j
118,153
100,340
61,139
76,899
87,878
70,973
2,452
2,461
2,460
2,466
4,327,868
4, 583, 568
4, 713, 875
5, 012, 662
3,035, 201
3,117,585
3, 202, 359
3,259,819
788,854
228, 303
954,934
239,936
256, 250
997,983
269,701 1,227,451
3,710,356
3, 922, 705
4,092, 609
4, 333,739
50, 868
50, 832
37, 721
37, 701
118,743
86,840
123,466
1945: M a r c h
2,465
2,471
5,136, 903
5, 549, 563
3, 300,601
3, 433, 871
327,151 1, 262, 429
282,911 1, 585, 708
4, 538,426
4, 786, 912
28, 781
28, 751
FEDERAL
1942: J u n e
December
1,464
1,467
2, 205, 921
2, 299,895
1, 849, 400
1,853,868
141,617
164, 430
41,022
117,339
1, 735, 932
1,882,051
150,776
137,208
1943: M a r c h
June
- . -_
September
December_ __. .__
1,467
1,468
1,471
1,466
2, 300, 638
2,426,079
2, 523, 737
2,617,431
1,839,302
1, 865, 991
1,896,312
1,915,771
156,792
170, 730
109,181
183,038
146,537
235, 524
369, 954
373,325
1,953, 846
2,060, 502
2,135,010
2, 257,002
96,109
96,109
55,021
55,021
1944: M a r c h
June
September
D e c e m b e r , ._
1,466
1,465
1,464
1,464
2, 709, 897
2,881, 276
2,961,860
3,168,731
1, 927,122
1,972,881
2,024, 635
2,058,045
135, 664
48, 913
151,862
166, 764
509,170
620,016
652,085
810,013
2, 346,042
2,488, 785
2, 599, 565
2, 760,927
1,465
1,465
3, 237, 942
3, 528,027
2,081,813
2,164, 653
832, 311
192, 904
178, 377 1,052, 668
910
931
1, 255, 307
1, 351, 703
978, 556
1,017, 773
77, 757
92,040
948
960
1,390, 280
1, 454, 920
1, 514,189
1, 565, 297
1,029,108
1,052,586
1, 075,099
1, 093, 254
986
996
996
1,002
1,617,971 1 1,108,079
1, 702, 292
1,144, 704
1, 752, 015
1,177, 724
1,843,931
1, 201, 774
1,000
1, 006 |
1942: J u n e
December
1
1943- M a r c h
June
_
September _ _ _
December
1944: M a r c h
June
September
December
J
_|
- - -
-
1945: M a r c h _
June
STATE
1942: J u n e
December
1943: M a r c h
June
September
December
._ 1
___ __ _
__
- _ _ .
1944: M a r c h
June
September
.
December _ _
1945: M a r c h
June
.
- ______
_ _ __
969
981
184,789
91,029
98,098
30, 219
53.1
33.2
83,403
103,939 1
83,970
118,496
48,955
33,704
60,019
37,885
58.7
32.4
71.5
32.0
87,163
105, 245
101,658
83, 408
104,494
127, 945
122,016
142, 291
56,693
46, 560
56,102
45, 985
54.3
36.4
46.0
32.3
54,365
124,936
110,287
126,824
138,709
163,156
71,488
56,279
51.5
34.5
127,623
84,135
110, 729
27, 381
121,555
58,937
57, 397
16, 530
47.2
28.0
46,820 {
56,553
87,648
74, 780
37, 850
46, 730
54,100
43, 647
54, 824
68,235
53,138
76, 677
30,238
19, 586
37,274
21,569
55.2
28.7
70.1
28.1
39,957
39, 948
29, 562
29,647
63,892
84, 602
60, 877
90, 257
53, 883
64,474
63, 489
51, 586
68, 276
83, 856
79,126
93,400
36,182
25,969
35, 570
26,049
53.0
31.0
45.0
27.9
2,895,120
3, 058, 683
22,616
22, 616
37,109
97, 940
69,430
79, 603
91,627
106,770
46, 574
33,601
50.8
31.5
29,830
76,113
1,000,326
1,101, 259
35,007
31,959
42, 443
29,842
68,934
19,324
63, 234
32,092
40, 701
13, 689
64.4
42.7
103,957
106,055
77, 773
119,518
95, 281
140,653
210,133
208, 326
1,151, 234
1,210,332
1, 254, 881
1, 316,894
24,029
23,143
14,899
14, 672
20,150
21, 602
30,505
25, 560
23,289
30,169
33, 778
27, 326
28, 579
35, 704
30,832
41,819
18, 717
14,118
22,745
16,316
65.5
39.5
73.8
39.0
92, 639
91, 023
104, 388
102, 937
279, 684
334,918
345,898
417, 438
1, 364, 314
1,433,920
1, 493,044
1, 572, 812
10,911
10,884
8,159
8,054
26, 211
34,141
25, 963
33, 209
33, 280
40,771
38,169
31,822
36, 218
44, 089
42,890
48, 891
20, 511
20, 591
20,532
19,936
56.6
46.7
47.9
40.8
1, 898, 961 1 1,218,788 1 134,247
104, 534
2, 021, 536
1, 269, 218
430,118
533,040
1,643,306
1, 728, 229
6,165
6,135
17, 256
26,996
40, 857
47, 221
47, 082
56, 386
24, 914
22, 678
52.9
40.2
Table 14.- -SAVINGS—Held by
institutions
[Thousands of dollars]
Insured
savings a n d
loans !
E n d of period
Mutual
savings
banks 2
Insured
commercial
banks 3
Postal
savings
90,103 1
Table 15.—FORECLOSURES—Estimated
nonfarm real estate foreclosures/ by
Federal Home Loan Bank Districts
4
Foreclosures
$2, 736, 258
2,983,310
$10, 354, 533
10,620,958
$14,889, 560
15, 704, 991
$1,315,523
1,417, 406
1943: M a r c h
__
June _
S e p t e m b e r . __
December
3,105,080
3, 270, 834
3, 389, 891
3, 573,896
±1,104, 707
16,897,124
11,707,025
18, 572,406
1, 492, 966
1, 577, 526
1, 683, 497
1, 787,994
1944: M a r c h
June
September
December,
3, 710, 356
3,922, 705
4,092, 609
4, 333, 739
12,428,026
20, 543, 888
13,331,811
23,362, 909
4, 538, 426
4, 786,912
14,378,413
1942: J u n e
December
Federal Home Loan
B a n k District
UNITED STATES
.._
1945: M a r c h
June
1, 905, 864
2,034,136
2,197, 701
2, 342,297
2, 513,197
2, 655, 646
1
Private repurchasable capital as reported to the FHLB Administration.
3 Month's Work. All deposits.
F D I C . These figures have been revised to show total time deposits of individuals,
partnerships and corporations.
4
Balance on deposit to credit of depositors, including unclaimed accounts.
June total is unaudited.
3
August 194S
Boston
N e w York___
Pittsburgh
Winston-Salem
Cincinnati
_ .
Indianapolis
.
Chicago...
Des Moines
Little Rock
Topeka. _
Portland
...
Los A n g e l e s . . .
C u m u l a t i v e (6 m o n t h s )
June
1945
May
1945
April
1945
June
1944
1,383
1,275
1,203
1,564
125
293
272
132
164
46
79
70
56
102
5
39
114
319
249
138
141
29
55
52
31
77
14
56
103
323
180
143
163
24
63
58
13
79
13
41
135
465
320
195
85
30
63
97
41
64
13
56
Jan.June
1945
Jan.June
1944
Percent
change
7,785
9,190
-15.3
779
1,873
1, 394
787
883
322
336
339
253
484
63
272
1,191
2,529
1,593
986
729
178
476
515
214
345
67
367
—34 6
—25 9
— 12 5
-20.2
+21.1
+80.9
29 4
-34.2
+18.2
+40.3
6 0
-25.9
337
IE HOME HON
Appointment of Construction
Coordinator announced
The Director of War Mobilization
and Reconversion has announced the
appointment of Hugh Potter of Houston, Texas, as Construction Coordinator to head the newly established Interagency Committee on Construction.
This group is composed of representatives of the Office of War Mobilization, Office of Economic Stabilization,
War Production Board, National
Housing Agency, War Labor Board,
Federal Works Agency, War Manpower Commission, the Departments
of Commerce and Labor and the
Smaller War Plants Corporation.
This committee will review the
construction programs of Federal
agencies to coordinate policies and
procedures for facilitating reconversion in conformity with total over-all
needs. It will also determine impediments to the rapid resumption of
construction and recommend appropriate action to the Director of the
OWMR.
Standards set for
prefab homes
The quality of prefabricated homes
can now be measured against commercial standards set up by the National Bureau of Standards. These
requirements are effective for one,
one and one-half and two story houses
produced since May 10, 1945. A prefabricated house is defined as "one
having floors, walls, ceilings, or roof
composad of section, or panels of varying sizes which have been fabricated
prior to erection on the building
foundation."
The new code reflects the views of
Government agencies, leading manufacturers, distributors and organizations which use prefabrication methods or supplies. Minimum requirements are outlined for structural
strength of the component parts,
light and ventilation, foundations,
chimneys, heating, plumbing, insulation, and electrical wiring. General
standards are also recommended for
338
materials, workmanship in the manufacturing processes, erection on sit3,
assembly of prefabricated units, and
protection during transportation and
erection.
Copies of the code, called ' 'Prefabricated Homes" (CS125-45), are
available at $.05 from the Superintendent of Documents, Government
Printing Office, Washington 25, D. C.
Lumber for
emergency use
Home owners no longer need an
FHA authorization to buy lumber for
emergency repairs to their dwellings.
They may now certify purchase orders
themselves and buy the lumber direct
from distributors. Announced jointly
July 16 by FHA and WPB, the order
amends Direction 8 of the L-335
WPB lumber control regulation.
The directive applies only to persons
owning and occupying single family
dwellings, not to landlords or tenants.
Emergency repair covers damage re-,
suiting directly from fire, flood, tornado, earthquake, storm, or similar
disasters. Also included in this category is necessary repair to permit
continued occupancy of a dwelling
which would otherwise be unfit for
living purposes.
Distributors are authorized to replace lumber sold under this directive
up to 5 percent of their 1944 retail
lumber sales, or 10,000 board feet,
whichever is more, during the rest of
1945. Purchase orders must be certified and an AA-3 rating applied.
Research finds new
uses for wood
To salvage a vast amount of raw
material now going to waste, lumbermen have turned to research to uncover new and better ways of using
wood and wood products. Almost
one-third of the nation's lumber comes
from the Pacific Northwest, but
approximately 70 percent of every tree
felled there was formerly discarded.
Concerned over the future of our lumber resources, Federal, state and indus-
trial laboratories have all set up extensive experimental programs. The
Federal activities are concentrated in
a U. S. Forest Service laboratory at
Madison, Wisconsin, while Oregon
probably leads in state financed wood
research. Individual firms and trade
associations are undertaking similar
work in their own laboratories. Discoveries are expected to create about
10 percent more jobs within the industry.
Already new techniques promise to
affect many phases of everyday living.
A recently developed process will
permit the use of such soft woods as
pine and fir for office furniture and
floors. Chemically treated, such wood
retains its characteristic appearance
but becomes very light in weight,
smooth and hard as ebony. A new
method of dry-kilning removes acids,
resins and fats. It allows the wood
to dry uniformly, thus eliminating
much cracking and warping. Byproducts of this process can be used
for making glycerine, soap, paints,
paper sizing and various other commercially important products. Weed
trees of the less valuable pine species
are being made into prefabricated
paneling.
In wood, research technicians have
tapped a huge new potential source of
valuable chemicals. Western hemlock
bark will furnish tannin for leather
makers. "Cork" can be produced
from Douglas fir bark. Another laboratory miracle reveals that lignin, a
plentiful by-product of wood alcohol
plants, yields phenols and resins used
in many plastics.
F H A loans on
existing houses
In the fiscal year ending June 30,
1945, FHA insured 52,119 mortgage
loans on existing houses to attain the
highest volume in the past five years.
Granted under Title II of the National
Housing Act, this insurance totaled
$242,079,000. Title II covers normal
peacetime insurance of loans on oneto-four family homes.
Federal Home Loan Bank Review
FOR THE FUTURE
In the midst of war, many towns and
communities are making their plans i(For
the Future," in order to have healthier,
more attractive cities, and to provide employment for the returning
servicemen
and workers.
From time to time, as information becomes available, the R E V I E W
will publish accounts of some of these.
glance t h e complete layout proposed
by t h e Committee. A system of loud
speakers permits explanation of various details. To p u t plans for such a
m o d e r n large-scale project into effect,
Toledo planning experts agree t h a t
s t a t e legislation will be necessary.
T h e more striking features of t h e
model, as contrasted with t h e city
today, are t h e elimination of con-
gested t r a n s p o r t a t i o n lines, the segregation of residential areas from t h e
heart of t h e city—largely through t h e
introduction of " g r e e n b e l t s " — a n d t h e
relocation of m u c h heavy industry.
A union terminal is shown on t h e
model, servicing air, rail and bus lines,
while expressways are provided to relieve city streets of t h e heavy volume
of t h r o u g h traffic.
Vancouver plans today
for tomorrow
Geographic distribution of
tangible assets was $39,600,000,000,
while a d j u s t m e n t for depreciation reserves yielded $21,300,000,000 net
property account balance.
While
neither t h e gross nor net figures represent t h e actual 1939 value, they do
furnish a rule-of-thumb gauge t o indicate t h e m a g n i t u d e of t h e wartime
expansion.
Vancouver, Washington, is n o t
waiting until " tomorrow'' to do
something a b o u t its surplus of l a n d
a n d war-built housing. Already, Gove r n m e n t agencies and civic organizations h a v e b a n d e d together t o formulate plans for t h e future use of some
22,000 units (family a n d dormitory)
of w a r housing.
Congress will be asked, under provisions of t h e L a n h a m Act, to a p p r o v e
t h e acquisition of three Federally
owned, p e r m a n e n t war housing p r o j ects. These
developments,
which
comprise 1,000 units, will be used for
housing t h e low-income families of
t h e city. I t is believed t h a t t h e
supply will be a d e q u a t e t o accomm o d a t e all such residents.
Based on t h e t h e o r y t h a t a t least 50
percent of its in-migrant workers will
remain in Vancouver after VJ D a y ,
t h e school district intends t o utilize
surplus Federally owned lands in a
postwar building p r o g r a m designed
to m e e t this potential d e m a n d . A
tuberculosis sanatorium, golf course,
riding academy, cemetery a n d p a r k s ,
to be located on t e m p o r a r y war housing sites, are included in Vancouver's
" after t h e w a r " plans. L a n d which
is left over after community needs are
m e t will be replatted and sold to priv a t e home builders. T h e Planning
Commission estimates t h a t " a b o u t
1,000 home sites can be sold w i t h o u t
flooding t h e real estate m a r k e t t h r o u g h
excessive subdivision."
wartime plant expansions
Contrary to impressions t h a t a widespread relocation of industrial plant
has occurred as t h e result of facilities
expansion during t h e war, W P B reports t h a t military a n d economic considerations resulted in a heavy concentration of these expansions chiefly
in t h e same states a n d areas where
specific industries had operated before
t h e war. "Actually, effective dispersion has been t h e exception r a t h e r t h a n
t h e rule. Certain exceptions are imp o r t a n t , however; new facilities for
various industries now exist in areas
previously not devoted to such industries. M a n y such new (or greatly expanded) industrial areas are almost
certain t o continue in importance after
the war."
F r o m July 1940 through M a y 1944,
t h e nation added 13,126 p l a n t s (new,
expanded or converted) with a t o t a l
value of $20,300,000,000. T h e prewar
manufacturing plant in t e r m s of gross
More t h a n 50 percent of t h e
$13,900,000,000 in "new p l a n t " authorized for t h e country as a whole was
concentrated in three regions: E a s t
N o r t h Central, $3,900,000,000; Middle
Atlantic, $2,000,000,000 a n d West
South Central, $1,800,000,000.
Although t h e E a s t N o r t h Central
a n d Middle Atlantic regions h a v e
retained their r a n k of first a n d second
in war expansions as in t h e value of
prewar plants, it is believed t h a t t h e y
have shown a proportionate loss in
metals a n d metal products due largely
to t h e expansion of shipbuilding a n d
aircraft production in other coastal and
southwestern regions.
MANUFACTURING FACILITIES EXPANSIONS
AS
OF MAY
VALUE
^fer^Iq^ftr-r
j^u^OOOOOv / M°HT.
BY
1944
STATE
—•
ff \ r
/^Qgy&vwa
1
^^^^^S^^
1
\||||||ilwsc^?w^^&©
T
^i
w
*0-
^
1
rSS
^ ^ ^ ^ ^ S |P&i
5§S§
^^vvvv^^^fe^xxt^^^^^ JSSy%^^K^SSS^
^BR^^^^^^^^^^^s^^jjjSSS^i^SSSSSS^
^^^^^^^^^^^^^B
^^^^^^^^^H^^^^
^SS^SpS^v^S^S^^^^^^^^^ssh^'^^^
Si
^^TANS^^^^^^^^^^^SSSS^^^^^^^^^^^^
Toledo committee
displays city model
T h e Toledo T o m o r r o w Committee,
a representative group of government,
business a n d civic leaders of Toledo,
Ohio, has currently on display a
61 x 30 foot model of an ideal plan for
their city. Aimed t o encourage public
s u p p o r t for civic i m p r o v e m e n t according t o an integrated plan, this
m e a n s of presentation offers a t a
August 1945
I N MEX.
NNSSN^Skj
LEGEND
fc^j
^
$1000 Million or Over
§§|JD $250-999 Million
{jggjjj $ 100-249 Million
1
1
J Under $ 100 Million
^ S K
^
^ ^ N
^ *
x S S S ^
\
\
1
^SS
SOURCE:- War Production Board
i
339
FEDERAL HOME LOAN BANK DISTRICTS
— < — BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
®
FEDERAL HOME LOAN BANK CITIES
OFFICERS OF THE FEDERAL HOME LOAN BANKS
CHICAGO
BOSTON
B. J. ROTHWELL, Chairman; E. H. WEEKS, Vice Chairman; W. H.
NEAVES, President; H. N . FAULKNER, Vice President;—Assistant
Treasurer; L. E . DONOVAN,
Secretary-Treasurer; BEATRICE E. HOL-
C. E. BROUGHTON, Chairman; H. G. ZANDER, J R . , Vice Chairman;
A. R. GARDNER, President; J. P . DOMEIER, Vice President; CONSTANCE M . WRIGHT,
Secretary; LAURETTA
QUAM, Assistant Treas-
urer; GERARD M. UNGARO, Counsel.
LAND, Assistant Secretary; P . A. HENDRICK, Counsel.
DES
N E W 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;
JOSEPH F . X. O'SULLIVAN, Assistant Secretary—Office Attorney.
MOINES
E. J. RUSSELL, Chairman; ROBERT E. L E E HILL, Vice Chairman; R. J.
RICHARDSON, President-Secretary; W. H . LOHMAN, Vice PresidentTreasurer; J. M . MARTIN, Assistant Secretary; A. E . MUELLER,
Assistant
Treasurer;
EMMERT,
JAMES,
NEEDHAM
&
LINDGREN,
Counsel.
PITTSBURGH
LITTLE ROCK
E. T. TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; R. H. RICHARDS, President; G. R. PARKER, Vice President-Secretary; DALE
PARK, Treasurer; WILLIAM S. BENDER, Counsel.
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.
WINSTON-SALEM
TOPEKA
H. S. HAWORTH, Chairman; E. C. BALTZ, Vice Chairman; 0 . K. LAROQUE, President-Secretary; Jos. W. HOLT, Vice President-Treasurer;
W. L. FERRELL, Special Council.
W M . F. JARDINE, Chairman; A. G. HARTRONFT, Vice Chairman; C. A.
STERLING, President-Secretary; R. H . BURTON, Vice PresidentTreasurer; JOHN S. DEAN, General Counsel.
CINCINNATI
PORTLAND
HARRY S. KISSELL, Chairman; W M . M E G R U E BROCK, Vice Chairman;
WALTER D. SHULTZ, President; W. E. JULIUS, Vice President-Treasurer; J. W. WHITTAKER, Secretary; E. T. BERRY, Assistant Secretary;
TAFT, STETTINIUS & HOLLISTER, General Counsel.
BEN A. PERHAM, Chairman; S. S. SELAK, Vice Chairman; F. H. JOHNSON, President-Secretary; IRVING BOGARDUS, Vice President-Treasurer; Mrs. E. M. JENNESS, Assistant Secretary; TONENIA A. MARCURE,
Assistant Treasurer; VERNE DUSENBERY, Counsel.
INDIANAPOLIS
H. B. WELLS, Chairman; F. S. CANNON, Vice Chairman-Vice President;
FRED T . GREENE, President-Secretary; G. E . OHMART, Vice President-Treasurer;
Counsel.
HAMMOND,
BUSCHMANN,
ROLL
&
ALEXANDER,
Los ANGELES
D. G. DAVIS, Chairman; C. A. CARDEN, Vice Chairman; C. E. BERRY,
Vice President; F. C. NOON, Secretary-Treasurer; HELEN FREDRICKS,
Attorney.
U. S. GOVERNMENT PRINTING O F F I C E : 1 9 4 5
@FedFRASER